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Fidelity official gold buying prices Thursday 15 April 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Thursday 15 April 2021

SG 90% AND ABOVE                                       $49.94/g                                

                                                                                                 

SG ABOVE 85% BUT BELOW 90%                $49.10/g                              

                                                                                                 

SG ABOVE 80% BUT BELOW 85%                $47.98/g                              

                                                                                                 

SG ABOVE 75% BUT BELOW 80%                $47.42/g                              

                                                                                                 

SAMPLE BELOW 10g BUT ABOVE 5g         $48.54/g                              

                                                                                                 

FIRE ASSAY CASH                                              $50.21/g

   

                                                                                                     

EXCHANGE RATE                                                   84.4827

 

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Contact FPR

No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Zim considering tapping into nuclear energy

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The Government yesterday approved the framework for cooperation with the Russian Federation State Atomic Energy Corporation as it explores the feasibility of using nuclear energy as an alternative source of power.

 The tie-up could culminate in the establishment of a centre for nuclear science and technology in the country.

 Information, Publicity and Broadcasting Services Minister Monica  Mutsvangwa told a post-Cabinet briefing that the Government had signed a  Memorandum of Understanding with the Russian Federation State Atomic Energy Corporation.

“Cabinet considered and approved the Memorandum of Understanding between the Republic of Zimbabwe and the Russian Federation State Atomic  Energy Corporation, which was presented by the Attorney-General on behalf of the chairman of the Cabinet Committee on Legislation,” she said.

“The memorandum seeks to facilitate higher level of cooperation between  the two countries in the use of nuclear energy, by laying a foundation  for the execution of the agreed areas of cooperation.”

 Mutsvangwa added that joint working groups would be established to identify specific projects to facilitate the cooperation, including exploring the feasibility of constructing a centre for nuclear science  and technology.

“The anticipated cooperation in the use of nuclear energy for peaceful purposes will provide alternative sources of energy which Zimbabwe needs,” she said. – New Ziana.

RioZim grapples with low ore grade

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Listed resources group RioZim is grappling with low ore grades which saw a 27% drop in gold production to 1.21 tonnes in the year to December 31, 2021 from 1.66 tonnes in the prior year.

“The company will build on its exploration drive from the prior year in order to upgrade and increase confidence levels on all resources across all our mines in light of the declining grades at Renco, One Step and Dalny mines,” RioZim chairman Saleem Beebeejaun said.

Gold production at Dalny Mine declined 46% to 198 kgs from 364kgs reported in prior year attributed breakdowns in the milling section of its ageing plant which directly impacted milling output.

Dalny currently relies on near the surface open pitable ores which have lower grades that culminate in low production volumes, Beebeejaun said.

“The medium to long term plan for the mine is to complete the dewatering and resuscitation of its underground shafts in order to access the higher-grade ore that is deposited underground,” he said.

Production at Cam & Motor Mine stood at 427kgs compared to 738kgs reported in 2019, reflecting a 42% decline.

Beebeejaun said the depletion of oxide ore resources at Cam & Motor Mine necessitated the migration of mining operations to the nearby mine called One Step Mine. Ore is hauled to the Cam & Motor processing plant.

However, the ore is of lower grade, Beebeejaun said.

“The ore resources at One Step Mine have significantly lower grades than those at the Cam & Motor pits and this negatively affected production output. The Mine is however, focused on completion of its BIOX plant project which will enable the resumption of mining and processing of high grade refractory sulphide ores from the Cam pits,”  he said.

Production at Renco Mine bucked the trend and increased 4% to 580kgs from 556kgs reported in 2019 on the back of higher milling throughput which was achieved as the mine implemented its ‘high volume low grade’ strategy which yielded positive results.

RioZim’s associate, Murowa Diamond Mine, produced 579 000 carats of diamonds during the reviewed period from 685 000 carats in 2019.

The lower production was attributed to the processing of low-grade K2 resources after the high grade k1 resources had been depleted in 2019.

The associate continued to contribute positively to the group’s profitability with a share of profit of ZWL$494.8m from ZWL$ 22.9m in the prior year.

The gold price during the period under review maintained a growth trend throughout the year recording a 27% growth from the prior year’s average price of US$1 395 per ounce, to an average price of US$1 765 per ounce in the current year which counteracted the impact of lower production volumes.

However, revenue for the group went up to ZWL$3.1bn during the reviewed period from ZWL$577.1m reported in prior year. The exponential increase was attributed to a direct result of the depreciation of the local currency against the US dollar.

The resources group also swung to profit of ZWL$908m from a loss of ZWL$138m in 2019.

The Empress Nickel Refinery remained under care and maintenance throughout the period under review and the refinery however, continued with cash generating projects to partially fund the care and maintenance costs whilst maintaining the integrity of the plant.

The company’s chrome claims in Darwendale are still under a legal dispute and the companies await finalisation of the court case.

In the energy business, the company obtained independent power producer licenses for the solar power projects for each operating location and the company is progressing with selecting an EPC contractor whilst awaiting finalisation of Power Purchase Agreements with ZETDC, Beebeejaun said.

 

Business Times

Gold delivery volumes bounce back

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Gold delivery volumes bounced back into positive territory for the first time in more than a year with the local bullion market reporting a growth in deliveries in March, owing to the slowing down of rains.

Official data obtained from the Fidelity Printers and Refiners (FPR), the country’s sole buyer and marketer of the yellow metal, shows that delivery volumes, which have been sliding in the past 12 months, increased 2% to 1.80 tonnes in March from 1.77 tonnes reported in the same period last year.

Of the 1.80 tonnes, the primary producers contributed 1.13 tonnes while the small-scale and artisanal miners delivered 0.67 tonnes.

Gold output has been ravaged by unfavourable policies that caused miners to divert their gold to alternative markets.

It is estimated that Zimbabwe has been losing between US$1.2bn and US$1.7bn yearly due to hurting policies which are infested with high taxes, costs and low retention levels which do not allow miners to produce at a competitive level.

“For March 2021, gold deliveries have gone up 2% to 1.80 tonnes from 1.77 tonnes during the same month in 2020 due to the subsidence of the rains which contributed immensely to the decrease in deliveries.

“Mines had been flooded during the period December to mid- March 2021, now that there is a huge slowdown we expect an increase going forward,” FPR general manager, Fradreck Kunaka told Business Times on Tuesday this week.

Gold Miners Association of Zimbabwe chief executive officer, Irvine Chinyenze,   said rains could have contributed to the temporary increase.

But, he suggested that the fundamentals should be addressed if the country was entertaining hopes of getting high output.

“I agree with the authorities that the rains affected production during the past four months but  forex retention levels should be reviewed to above 80%  for primary producers, there should be timeous payments which are still erratic, high taxes should be cut and   costs of importing money should be removed forthwith.

“If they can do that, gold output will reach amazing heights. It is not that miners are not mining but they chose what to deliver to Fidelity due to uncompetitive prices,” Chinyenze said.

Small scale miners are getting 100% forex retention threshold while large scale are getting 60%.

In January 2021, from the output of 0.997 tonnes, primary producers delivered 0.64 tonnes against small scale who managed 0.355 tonnes, in February 2021, the small scale extracted 0.56 tonnes and primary producers delivered 0.61 tonnes.

During the 2021 first-quarter total gold deliveries fell 31% to 3.977 tonnes from 5.72 tonnes achieved last year.

From the 3.97 tonnes, small-scale delivered 1.58 tonnes while primary producers delivered 2.39 tonnes.

Kunaka recently told Business Times that the country could be losing over 30 tonnes yearly valued at US$1.7bn due to smuggling on unfavourable mining policies.

He said that the government should totally liberalise the gold sector to combat smuggling and compete at the highest level with foreign gold buyers.

Zimbabwe’s gold output plummeted 31% to record 19.052 tonnes during 2020 from 27.66 tonnes recorded during 2019 due to Covid-19 effects, delay in payments and low foreign currency retention levels.

Gold export receipts in January 2021 were at US$53.1m from US$98.1m during the same month last year due to subdued deliveries due to Covid-19 effects, heavy rains that the country has experienced in January and the failure to remove costs on small scale gold miners.

 

Business Times

Gold miner battles to recover US$18m plant

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Troubled gold miner, Mazowe Gold Mine, is battling to recover a US$18m sand treatment plant which was allegedly parcelled out mysteriously to a third party, it emerged this week.

Business Times can report that the plant is now under the control of a company called Eagle Breeze.

It is understood the mine’s corporate rescuer, Reggie Saruchera of Grant Thornton, is in discussions with Eagle Breeze, with the view to buy the plant back.

The mine, which was bought by Landela Mining Ventures from Metallon Group, was placed under receivership last year following an application by the Associated Mine Workers Union of Zimbabwe in a bid to save the mine from creditors who had besieged the mine.

Well-placed sources confirmed the development saying there were concerns on how Mazowe lost the plant.  Circumstances around the plant were not clear.

“The plant was sold to a company called Eagle Breeze and there has not been enough clarity on how the company went on to lose the plant which was expected to transform its fortunes,” one source said.

Saruchera confirmed the sale of the plant but said it “was sold way before our appointment”.

It is also understood that there has been a challenge in the re-opening of the mine with indications that some high ranking government officials are stalling the plan.

They have, sources said, vested interests in the mine operations.

Apparently, the miner is battling the prevalence of illegal gold miners despite the heavy presence of the Zimbabwe Republic Police Support Unit squad.

Armed and dangerous thugs have been a menace at the mine amid revelations that a number of unreported murder cases were happening at the mine amid allegations authorities continued to cast a blind eye.

The halting of operations at the mine owing to operational challenges rendered most of its employee’s jobless, and also opened up opportunities for illegal miners to invade the underground tunnels in search of the precious mineral.

Mazowe Mine is situated in the west-central part of the Harare greenstone belt. Ore bodies there generally comprise shear zones which are in-filled with gold-bearing sulphides and quartz.

Mazowe Mine is one of the oldest mines in Zimbabwe, and exploration and development in this region dates back to 1890, with over 1.4m ounces of gold produced to date. The mine comprises two underground operations, Mazowe and the BSV sections.

The mine has a total of 247 claims over 2,939 hectares of landholding.

Business Times

Daggers out over gold buying

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A gold buying war has erupted in the industry pitting the newly formed indigenous grouping and a long existing cartel that has been accused of manipulating prices of the yellow metal, Business Times can report.

Well-placed sources in the sector said this week the cartel consists of “foreign and local white gold mafia” that has for years been fuelling smuggling of gold.

The cartel is said to be led by a famous tobacco dealer (name withheld).

Indigenous gold buyers have formed an association, National Gold Buyers Association to counter the cartel.

The association is led by gold dealer, Scott Sakupwanya.

The fallout between the two constituencies stems from the pricing of the yellow metal.

The cartel has been enjoying the monopoly of having gold export licences and it was easy for them to distort and manipulate gold buying prices on the market.

“There has been some outcry on the continued distortions on the market and this association was formed to address market manipulation leading to price distortions as well as curbing smuggling that had become rampant in the market,” Zimbabwe Miners Federation chief executive Wellington Takavarasha told Business Times.

Sakupwanya said the organisation was created to control the sale of gold and this was only achievable through setting up a registered and recognised Association.

“We created this organisation so that there is a uniform price on the market unlike in the past,” Sakupwanya said.

At the international market, a kilogramme of gold is selling at US$56,000 per kilogramme.

But, the cartel has been paying around US$42,000.

The indigenous grouping is paying about US$50 000 per kg.

The country’s sole buyer of the yellow metal, Fidelity Printers and Refiners (FPR) is paying about US$47 000 a kg, after deducting royalties and the cost of importing the cash. According to FPR, Zimbabwe is losing about 30 tonnes of gold annually through side marketing and illicit flows.

Zimbabwe is losing between US$1.2bn and US$1.7bn yearly due to unfriendly policies which benefit dealers despite the country having mechanisms to curb gold and financial leakages.

 

Business Times

Goldman doubles down: Record-high copper price within a year

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Copper is trading more than $800 per tonne below the near-decade high hit in February, and some of the ardour of copper price bulls has cooled decidedly since then.

Goldman Sachs metals strategist Nicholas Snowdon, speaking at the virtual World Copper Conference on Tuesday, is squarely in the bull camp, however.

Snowdon doubled down on the investment bank’s view that the mining sector is at the start of a supercycle, citing three factors driving the boom in the broader commodity market:

Long-running structural underinvestment in the “old economy”,  including mining, infrastructure and industrial production, new redistribution policies ushered in by covid that target commodity-intensive social needs rather than financial stability and thirdly, a massive rise in government spending, particularly in the US.

Green has copper core

Snowdon says environmental policies will drive a capex boom on par with the 1970s and 2000s over the course of the next decade and copper is the core of the green energy transition:

“We estimate nearly $16 trillion would have to go into green-focused infrastructure to achieve decarbonisation targets, compared to just $10 trillion in China during the last supercycle.”

Another factor supporting higher raw material prices is the vulnerability of global supply chains exposed by covid and the subsequent destocking in Western countries – notably in the copper trade, where Chinese imports have continued to set records.

Ex-China growing faster

Snowdon says while the market is only now entering a period of deficits, by the second half of next year the copper market would be at its tightest point since the mid-2000s with very low inventories leading to concerns about scarcity.

“We are in a supercharged, synchronised global demand surge. Chinese demand remains very strong, growing at 4% this year, underpinned by strength in infrastructure investment, strong completion phase in the property sector, and also strong recovery in consumer led sectors.”

But what is particularly unusual of the current copper market is the pace of demand recovery in ex-China economies, says Snowdon:

“We forecast demand growth in developed economies at a faster rate than China – close to 7% growth rate this year.”

Supply gap becomes a chasm

On the supply side, Snowdon points to the collapse in treatment and refining charges (paid by miners to smelters) which reflects underperforming mine supply as evidenced by exports from Chile and Peru, which have not recovered as expected this year.

Green-related demand will gather pace in the second half of this decade, ultimately generating nearly 5 million tonnes of additional demand, according to the Goldman forecast.

Set against a peak in global mine supply from 2024 onwards, Snowdon says these fundamentals will generate “a record long term supply gap by the end of the decade that has to be solved by investment in new mine capacity.”

The long-term supply gap has really opened up in the last few years and at the current 8 million tonnes is close to double the supply gap during the last bull market in the 2000s and early 2010s.

“This can only be resolved by higher prices stimulating investment in new supply,” says Snowdon.

Mining,com

ASM’s significant negative impact on human health, safety and environment

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IT’S a little before 6AM on a bright, humid morning, and already Melusi Sibanda (24) from Bubi District in Matabeleland North province has been hard at work for hours.

Rustling his aluminum pan back and forth through a waist-deep pool of brackish water, he despairingly scrutinises its contents for glimmers of gold. With the sun beginning to beat down mercilessly, the young miner splashes handfuls of the liquid, which is laced with mercury and cyanide to separate gold from unwanted rock, on his face to stay alert. Without hesitation and with flecks of mud on his face, lips and eyes he said: “Being umakorokoza (artisanal miner) is brutal. Just imagine digging soil every day in search of the precious mineral.

The job is physically demanding, the health risks are enormous, and at times the take-away is almost negligible considering the damage you would have caused to the environment.”

“We have people who don’t realise it is our livelihood here, it always has been and always will be.”

From Sibanda’s observation it is clear that although artisanal and small-scale mining (ASM) particularly in the gold mining sector, is generally pursued as a route out of poverty or as an activity to complement insufficient income, especially in communities where alternative employment is hard to come by, it has a significant negative impact on the human health and safety and the environment.

His experiences are also a living testimony that even though artisanal gold mining has surpassed agriculture as the main livelihood activity, providing income for both men and women and also as a major contributor to the country’s total gold output, safety, health and environment, (SHE) conditions are poor as farmlands are degraded thereby affecting food production and streams and rivers are polluted, resulting in costly water treatment to make it safe to drink.

In short, the ASM can be disparagingly considered as a ‘get-rich-quick’ activity but big in impact as its unregulated activities worsened the conditions of the already impoverished local communities.

Among the most significant environmental aspects related to artisanal and small-scale mining are deforestation, changes in landscape structure, and chemical pollution of soil and watercourses.

According to a recent report by Zimbabwe Miners Federation (ZMF) from 2017 to 2020, the ASM sector has been producing more than the big mining operations with a record averaging 60 percent of the total gold production as recorded at Fidelity Printers and Refiners (FPR).
During that period the ASM sector produced 60 tonnes compared to 42 tonnes produced by the primary producers, the large-scale mining (LSM) sector, making it an indispensable activity for marginalised communities.

While estimates by International Labour Organisation (ILO) place the number of people working in ASM at over 13 million worldwide, in Zimbabwe although there are no official figures on illegal gold-mining activities, at least 1,5 million artisanal miners operating in the country are not registered.

Observers note that despite its contribution to the economy the ASM sector which relies on a mostly unskilled workforce using rudimentary tools and techniques, the use of hazardous substances for mining puts the health of miners and their communities at risk, and they are exposed, for example, to mercury, zinc vapour, cyanide, or other acids. This is a particular concern in gold mining, where mercury is frequently deployed and cyanide use is growing and most of these risks are borne by women, due to the division of tasks between male and female miners.

Female miner Ms Saliwe Moyo (43) from Gwanda said women just like their male counterparts also disproportionately experience the negative impacts of ASM, as they are primarily involved in crushing, sluicing, washing, panning and sieving.

“Although women all over the world have been involved in mining activities for centuries, the mining industry especially ASM has not been an obvious career choice for women. Their involvement exposes them to the various hazards including improper handling of chemicals, such as mercury which links to water bodies causing both health and environmental hazards,” said Ms Moyo.

It is important to note that while notable awareness raising has been undertaken especially on the dangers associated with ASM activities, the number of accidents and fatalities continue to rise. For example, between February and September 2020, Midlands Province alone recorded more than 60 mining related deaths.

In January this year, Mines and Mining Development Minister, Winston Chitando urged small-scale and artisanal miners to exercise due diligence in their operations to eliminate increased accidents that have led to the loss of lives and injured many in recent months.

He made the call during a visit to Task Mine Syndicate in Chegutu where five artisanal miners had remained trapped following a mineshaft collapse in September last year.Minister Chitando said while many people, particularly youths, were eking out a living from the gold sector, it was critical for them to consider orderly and careful mining to avoid injuries and losses of life.

“It is my wish that the Ministry of Mines and various players including Zimbabwe Miners’ Federation (ZMF) engage for orderly mining across the mining sector. There was a resolution that was passed in Cabinet regarding orderly mining and strict safety health and environment standards and as a Ministry, we are tasked to ensure that all players follow the guidelines,” he said.

Zimbabwe Environmental Law Association (Zela), a public interest law group which seeks to promote good governance in the environmental sector embarked on a series of activities to sensitise miners on these issues so that there is a safer working environment for ASM that promotes good mining practices.According to Zela project officer Mrs Joyce Machiri, from a health perspective ASM is exposing the miners to several health risks, especially in gold mining.

“Regardless of ratification of the Minamata convention, miners still use mercury to process their gold ores. Mercury is a very hazardous substance, and its effects ranges are not only confined in the mining activities but also span throughout the mining communities and beyond, owing to its long-range transport in water bodies and atmosphere.

“Use of dry drilling in their operations, with no proper ventilation systems, and personal protective equipment to protect themselves from fine dust particles, also increases the risk of pneumoconiosis (silicosis). Working in confined places without proper ventilation, crowding in very narrow tunnels promotes manifestation of tuberculosis (TB), several miners are at a risk of being infected by TB,” said Mrs Machiri.

According to a recent report released by National Aids Council (Nac), HIV and Aids are also a ticking time bomb in the ASM sector.Turning to environmental challenges Mrs Machiri said: “Environmental safety has never been regarded in the ASM sector. Although efforts have been there to conduct Environmental Impact Assessments, implementation of the environmental management plans is very low.”

Mrs Machiri further said since issues around safety, health, and environment, are generally related to the capacity to prevent, to mitigate and to manage these hazards, as Zela they were conducting education exchange sessions with miners in different districts through the ASM Academy, SHE training and ASM Safety Talks.

“Our safety talk strategy involves going to mining sites to discuss mining hazards from an engineering perspective as well as health hazards from a health science perspective. So far, we have managed to assist miners to develop their mines and managed them through aspects on timbering, dewatering among others.

“Health science also touches on issues of Covid-19, HIV and Aids, mental and physical wellbeing issues among others. Not only has this helped reduce mine accidents in our area of influence but also capacitated miners to adopt the aspects and implement on their own,” she said.

The environmental dangers posed by mining and its related health and safety repercussions for staff and surrounding communities are related to lack of awareness, financial limitations, inadequate technology, and ineffective environmental law. As part of proactive approach in reducing mining accidents, ZMF is on record instructing its members to stop operations if they do not have standard shaft reinforcements especially during the rainy season.This came after dozens of artisanal miners lost their lives in gold rich areas across the country, with the federation indicating that it cannot afford more tragedies.

ZMF spokesperson, Mr Dosman Mangisi said small scale miners without standard shaft reinforcements should consider halting mining operations especially during rainy seasons.“Life is precious; in as much as we are an essential sector, we need to be alive so that we are productive in the future. We urge our hardworking miners to stop mining if they don’t have standard reinforcements as many shafts usually collapse during rainy season.

“There is also need to promote mining health by reducing miners’ exposure to respirable airborne contaminants directly reducing the risk of developing lung disease. This may be done through provision of PPE, implementing of wet drilling and provision of adequate mine ventilation. The sector needs to address these health issues through awareness programs and adoption of safe practices. The Government also needs to assist miners with alternatives to mercury in the ASM sector and pioneer in research on the mercury alternative,” Mr Mangisi said.

He maintained that safety and health in ASM sector is key for sustainable mining development. From his observation it is clear that lack of formalisation system for artisanal and small-scale gold miners creates an environment which promotes unsafe mining activities. There is hardly any monitoring and inspection of mining activities.

The proposed Mines and Minerals Amendment Bill is expected to include provisions that will regulate the conduct of artisanal miners, and ensure their safety when carrying out underground mining activities.The Mines and Minerals Bill was brought before Parliament in 2015 to amend the previous 1961 law, which had become outdated.Formalising these activities will undoubtedly enforce the mandate to inspect the mines, suggest improvements or halt operations where need be.

Although Government efforts are beginning to focus on formalising the ASM sector by encouraging the formation of co-operatives where multiple miners can work the same site and also benefit from health and safety knowledge and management, occupational health and safety in the ASM sector is largely undeveloped.Presently, many ASM workers operate without seeking licences due to certain bottlenecks described as economic, political, social, regulatory, and technological factors.

It is no overstatement that small scale mining contributes quite significantly to economic growth and Government therefore needs to formalise and incentivise their operations.

The Chronicle

Miner killed in accident at Gold Field’s South Deep

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Gold Fields (JSE, NYSE: GFI) announced Tuesday that an employee at its South Deep mine in South Africa lost his life in a mining incident.

Shaft timberman Vumile Mgcine, aged 46, succumbed from injuries sustained while attempting to unblock a shute outlet on an underground conveyor belt. He leaves behind a wife and two sons.

The Department of Mineral Resources and Energy has been advised of the tragic incident and an in loco inspection, led by the DMRE with trade union representatives and mine management, will take place on Wednesday, Gold Fields said.

Mgcine’s family will be supported in accordance with a range of the mine’s policies, the company said. The mine has stood down all activities this evening to brief employees and offer counselling to those in need of support.

“There is no more tragic reminder of the overriding importance of safety at our mines than the death of a colleague,” Chris Griffith, CEO of Gold Fields, said in a media statement.

“My heartfelt condolences go out to Vumile’s family, friends and colleagues. Management will do everything possible to support them in this hour of need.”

Mining.com

Robert Friedland: Copper is a national security issue

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Copper is so crucial in electrifying the global economy that finding enough of it has become a national security issue, according to mining magnate Robert Friedland.

Mining companies will have to be “real heroes” and governments will have to accept the industry if the world is to successfully transition to clean energy and transport, said Friedland, founder and co-chairman of Ivanhoe Mines Ltd., which explores and develops mines in Africa.
The world is yet to grasp the scale of disruption in replacing fossil fuels, with most people in urban areas unaware of where materials in everyday life come from, he said.

“It’s all copper, copper, copper, copper, copper, copper,” Friedland told the CRU World Copper Conference on Tuesday.

While the 70-year-old billionaire is taking a long-term view, his words of warning contrast with those of some of his colleagues at the conference who are reluctant to accelerate growth plans in a cyclical market.

His comments seem more in line with bullish analysts such as Nicholas Snowdon of Goldman Sachs, who predicts record-high prices as the metal heads toward the tightest conditions since the mid-2000s.

Mining is suffering from years of underinvestment, with America very under-explored because for 20 or 30 years “it wasn’t cool to mine,” Friedland said. Where future supplies come from “is going to be a matter of fervent debate” as will how to tax and regulate them.

Massive investments are needed to electrify economies. The US power grid, which “is a joke” compared with China’s, needs $10 trillion and “astronomic amounts” of the right metals to get up to scratch, he said.

“In the short term, we’ve had a big rise in the price of copper,” Friedland said. “But for the medium term, copper has really become a national security issue. It’s central for what we want to do with our economy.”

While the industry should now be seen as part of the solution in global decarbonization, it also faces challenges to decarbonize, he said. Ore quality around the world is deteriorating, meaning volume has to rise and carbon emissions increase. Mining will need both hydroelectric and nuclear power as well as renewable, he said.

People should expect a carbon tax on everything, he said.

Bloomberg News(By James Attwood, with assistance from Daniela Sirtori-Cortina and Joe Deaux)