Western miners advocate for higher metal prices due to competition from China, struggling to compete.

From Investing.com: 2024-07-22 02:10:50

The only U.S. cobalt mine in Idaho remains closed due to Chinese competition flooding markets with cheap supplies. Prices need to reach $20 per pound for the mine to reopen, but currently sit at $12.17, causing Western mining companies to struggle to compete with unsustainable practices. Calls for a two-tier pricing system for sustainably produced metals are growing.

Industry leaders have long advocated for two pricing structures to support sustainable mining practices, gaining traction with investors and policymakers. Western governments are hesitant to intervene in market pricing mechanisms but recognize the cost of sustainable commitments. Automakers are facing pressure to secure diverse, transparent, and sustainable metal supplies, with regulations in the E.U. requiring proof of procurement sources and carbon footprints by 2027.

BHP, the world’s largest mining company, has suspended nickel operations in Australia due to oversupply. Australia’s clean nickel industry is facing closure threats, while Indonesia’s nickel production poses environmental concerns. Albemarle, a top lithium producer, laid off staff amidst low prices, struggling to compete with Chinese production. U.S. officials seek ways for miners to “weather the storm” of global mineral oversupplies.

World leaders have imposed tariffs and explored differentiated trading markets to counter China’s dominance in critical minerals markets. Governments are considering measures to support sustainable mining practices and combat dumping of minerals by China and other nations. The push for transparency and sustainable practices in the mining industry is at the forefront of efforts to ensure a secure and ethical global supply chain.



Read more at Investing.com: Western miners push for higher metals prices to ward off Chinese rivals By Reuters