- Write by:
-
Wednesday, February 10, 2021 - 12:20:14 PM
-
518 Visit
-
Print
Mining News Pro - Mining heavyweight Mick Davis, whose Vision Blue has raised $60-million to invest in battery metal assets, believes the world is on the cusp of an unprecedented surge in demand for certain commodities and that an immediate supply-side response is required from the industry.
“The impact of rapidly growing demand for battery minerals is likely to lead to a surge in demand for specific commodities that will dwarf anything the mining industry has ever seen before, including the commodity impact of China’s industrialisation in the last 20 years.
“In combination with this surge in demand, a failure to develop new sources of supply highlights the need to ensure that critical mining assets are immediately financed and brought to production,” says the former Xstrata CEO.
A shortage of capital investment and industry dynamics mean that battery mineral projects often do not meet the return criteria of major mining companies. Yet, electric vehicle adoption and energy storage systems will create a surge in demand for a number of commodities.
Davis believes that the outlook for graphite is the strongest for all battery minerals, as there is no credible substitution risk and the potential for a six-fold increase in global yearly demand.
Vision Blue this week pumped $29.5-million into the Molo graphite project, owned by Toronto-listed NextSource. With the financial backing, the project, in Madagascar, will be brought to production in less than a year.
“NextSource’s Molo project has the potential to become one of the lowest cost producers of high-quality graphite in the world and a tier one multi-generational asset," says Davis.
The investment in NextSource follows Vision Blue’s first fundraising of $60-million and more transaction announcements are said to be “imminent”.
Vision Blue has also received significant expressions of interest to invest in future fundraisings and will return to the market later in 2021.
“We have been pleased by the level of investor interest in Vision Blue’s unique approach to creating value from the next phase of the mining industry’s evolution,” Davis says.
Short Link:
https://www.miningnews.ir/En/News/610414
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
French mining group Eramet said on Wednesday it had reached an agreement with the French government to continue its ...
Copper jumped to its highest intraday price since January 2023 as the bellwether industrial metal faces rising tighter ...
A US and European Union push to reach an accord on fostering critical mineral supply chains is set to miss another ...
Indonesia’s mining minister on Wednesday said divestment of Vale Canada Ltd and Sumitomo Metal Mining Co. Ltd’s shares ...
The United States speaks regularly with the Democratic Republic of Congo’s state miner Gecamines, a senior State ...
Battery metal prices are on the floor, and massive expansions by Chinese miners have been instrumental in driving them ...
Indonesian state-controlled miner Aneka Tambang (Antam) aims to launch the construction of two nickel processing ...
No comments have been posted yet ...