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Daily Mail
10 hours ago
- Business
- Daily Mail
SMALL CAP MOVERS: Robot revolution bodes well for these three miners
We are on the cusp of a robot revolution. And that bodes well for an overlooked trio of junior members of the mining exploration community. Let me explain. As robotics and automation gear up to double in scale by 2030, demand for rare earth elements, like neodymium and dysprosium used in electric motors, is soaring. China currently controls around 70 per cent of the global rare earth supply, creating a geopolitical bottleneck that could disrupt the robotics revolution. UBS earlier this week warned of a 'materials pinch point' as the world's appetite for automation and electrification grows, making miners and processors of these metals increasingly important. It forecasts the global stock of industrial robots will nearly double to almost six million units by 2030, driven by falling costs, AI advances and labour shortages. Rainbow Rare Earths, Harvest Minerals and Altona Rare Earths are among the UK companies quietly emerging as key players in the race to supply critical materials for the new industrial age. While Rainbow and Altona continue to trade under the radar, it was a different story for Harvest, which skyrocketed 60 per cent this week. This came after it reported more positive assay results from its rare earth exploration programme in Brazil and confirmed plans to accelerate drilling activity. The AIM-listed mine developer said new tests on 36 historical samples from its Arapuá project, in Brazil, showed total rare earth oxide (TREO) concentrations ranging from 2,110 to 2,657 parts per million. The samples also returned high titanium dioxide grades of up to 15.42 per cent, confirming mineralisation in a rock type known as 'Bone'. The other two are making similar headway, which is yet to be rewarded. So, watch this space. Now, turning to the wider market, the AIM All-Share was almost static at 761.13 as mounting tensions between Israel and Iran hit sentiment. The performance of the small-cap index mirrored that of the FTSE 100, which was also moribund. It was a good week if you were looking to raise funds, particularly in the Bitcoin treasury space. The stand-out was The Smarter Web Company, an Aquis-listed venture which came to the market with little fanfare in April as a provider of web services with ambitions in cryptocurrencies. Those ambitions have been realised. Not only did SMC raise just under £30million in a massively oversubscribed City investment round, it also struck a deal that could see it access a further £80-odd million. Smaller aspirants used interest in the sector to bolster their Bitcoin buying power. Vinanz raised £3.7million and Helium Ventures raked in £4million as did Coinsilium. Usually, in the wake of chunky new share issues, stocks retrench. Not so with the quartet mentioned above. Vinanz was the comparative 'laggard' with a 46 per cent gain, while the others saw triple-digit advances. Onto the fallers. Down 41 per cent, the week's biggest casualty was Revolution Beauty, which tanked after Mike Ashley's Fraser's Group pulled out of the running to acquire the business. Year-to-date, the stock has tumbled 72 per cent amid accounting issues and boardroom disputes. It launched a formal sale process at the end of last month after receiving a preliminary takeover approach from an unnamed company. It was also a week to forget for Litigation Capital, a fund set to back high-payout legal cases. The shares fell 35 per cent after it announced a court defeat in one of its funded cases and flagged a sharp slowdown in investment returns in the second half of the financial year. After a sharp rise in the stock price it was back to earth with a bump for investors in Karelian, which issued stock equivalent to 12.5 per cent of its share base to bring in a paltry £185,000. The price dropped 32 per cent. Still, those invested a month ago are still sitting on a 48 per cent gain. Finally, ACG Metals is quietly making progress, although the market has been slow to respond. Giving investors a nudge, Canaccord Genuity has launched coverage with a 'buy' rating and an 830p price target, a 53 per cent premium to the current share price. The key to achieving this valuation is the shift from gold to copper at its flagship Gediktepe project in Turkey. The change, scheduled for 2026, will see ACG move from its current gold oxide production to a copper sulphide operation. Canaccord describes a 'smooth transition at Gediktepe' as key to the investment case. For 2025, ACG has guided for 30,000–33,000 ounces of gold equivalent at all-in sustaining costs (AISC) of around US$1,150 per ounce. Canaccord is slightly more optimistic on output and believes cost performance could improve, particularly with a strong end to the year. Although 2026 is forecast as a lower-margin year due to the transition, Canaccord expects robust cash flow to follow as copper production ramps up, with net debt peaking next year before rapid deleveraging. With prices of the red metal strong and multiple 'de-risking' milestones ahead, Canaccord sees ACG as well placed for a re-rating if it can deliver on execution.
South China Morning Post
3 days ago
- Business
- South China Morning Post
US-China trade war's shift to export controls is music to Beijing's ears
Two days of talks in London between the United States and China have underlined that tariffs are no longer necessarily the primary theatre of operation in the trade war. The action has now shifted to the far more difficult issue of export controls, primarily on rare earth exports from China and technology exports from the US. That's good news for China. Advertisement Although details are lacking, the London negotiations resulted in a framework that purports to make at least some progress on the nettlesome export restrictions. The amorphous nature of export controls will provide ample room for obfuscation and backsliding. The London meetings were precipitated by rising consternation on both sides over export restrictions that threatened the tentative trade truce agreed last month in Geneva . China failed to loosen its grip on the export of rare earth materials needed for a wide range of advanced manufacturing, breeding nervousness in the US over the prospect of factory closures and diminished defence capabilities The US, for its part, has continued to ratchet up restrictions on China's access to the technologies central to China's ambition to be a global AI leader. This intensifies China's apprehension over what it sees as US determination to block its rise. The trade war will rumble on in spite of the framework agreed in London, and as it does, export restrictions will be an increasingly important pressure point each side will try to leverage. Although export controls can take various forms, including outright bans, a more common approach is to institute a licensing system , which requires explicit approval for cross-border shipments of the product in question. 03:36 China restricts critical metal exports following Western semiconductor curbs in latest trade war China restricts critical metal exports following Western semiconductor curbs in latest trade war
Bloomberg
6 days ago
- Business
- Bloomberg
China-US Deal Didn't Address Some Rare Earths Controls: Reuters
The trade agreement reached by US and China in London left export restrictions tied to national security unresolved, Reuters reported, citing two people familiar with the matter. Beijing hasn't committed to granting export clearance for certain rare-earth magnets needed by US military suppliers in fighter jets and missile systems, according to the report.
CTV News
12-06-2025
- Business
- CTV News
Critical minerals give China an edge in trade negotiations
A town is built amongst the hills near Ganzhou in southern China's Jiangxi province on March 19, 2025. (AP Photo/Ng Han Guan) GANZHOU, China — China's dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they have a framework to pursue a deal. China has spent decades building the world's main industrial chain for mining and processing such materials, which are used in many industries such as electronics, advanced manufacturing, defense and health care. Mines and factories in and around Ganzhou, a key production hub for rare earths, underpin China's control over the minerals. Many residents grew up collecting rocks containing the valuable minerals from the forested hills surrounding the southern city and today make a living from mining, trading or processing them. Critical minerals as a trade issue Responding to ever higher tariffs and other controls on advanced technology, China told exporters of certain key rare earths and other critical minerals to obtain licenses for every shipment abroad. Approvals can take weeks, leading to supply chain disruptions in the U.S. and other countries. President Donald Trump said Wednesday that China would make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world's two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses. But details remain scarce. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it. The Chinese Commerce Ministry said Saturday it had approved a 'certain number' of export licenses for rare earth products, apparently acknowledging Trump's personal request to Xi during a phone call last week. And on Wednesday, the Ganzhou-based rare-earth conglomerate JL MAG Rare-Earth Co. confirmed it had obtained some export licenses for shipments to destinations including the U.S., Europe and Southeast Asia. Experts say, however, Beijing is unlikely to do away with the permit system enabling it to control access to those valuable resources. 'I think what the Chinese have proven is they have now created an entire export control regime for rare earths,' said Daniel Kritenbrink, a partner at The Asia Group consultancy. 'They can turn that spigot on and off at will.' The only scenario in which China might deregulate its critical minerals export is if the U.S. fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government's earlier stance. 'Without that,' he said, 'it will be difficult to blame China for continuing to strengthen its export controls.' An industry built over decades with government support In 1992, Deng Xiaoping, the leader who launched China's ascent as the world's biggest manufacturing power, famously said 'the Middle East has oil, China has rare earths,' signaling a desire to leverage access to the key minerals. Several generations later, Beijing has made its rich reserves of rare earths, a group of 17 minerals that are abundant in the earth's crust but hard, expensive and environmentally polluting to process, a key element of China's economic security. In 2019, during a visit to a rare earth processing plant in Ganzhou, Xi described rare earths as a 'vital strategic resource.' China today has an essential monopoly over 'heavy rare earths,' used for making powerful, heat-resistance magnets used in industries such as defense and electric vehicles. The country also produces around 80 per cent of the world's tungsten, gallium and antimony, and 60 per cent of the world's germanium -– all minerals used in the making of semiconductors, among other advanced technologies. The risks of dependency on Chinese suppliers first came into focus in 2010, when Beijing suspended rare earths exports to Japan due to a territorial dispute. The ban was lifted after about two months, but as a precaution, Japan invested in rare earths processing plants in other countries and began stockpiling the materials. Beijing's across-the-board requirement for export licenses for some critical minerals has put pressure on world electronics manufacturers and automakers. Some auto parts makers in Europe have shut down production lines due to delays in supply deliveries, according to the European Association of Automotive Suppliers. In the U.S., Tesla CEO Elon Musk said a shortage of rare earths is affecting his company's work on humanoid robots. China's critical minerals resources are dwindling In the drab industrial hub of Ganzhou, cradled by the scenic Dayu Mountains, the U.S.-China trade war is still a distant stressor. Miners and small mineral traders interviewed by The Associated Press said they are more concerned about depleting the mountains' once-abundant resources. Zhong, a tungsten factory manager in Ganzhou who would only give his last name, worked his way up to manager from a miner, but he's unsure there is a future for him and others in the industry. 'I find growing difficulties to source tungsten these days,' he said, adding that smaller mines and trading companies are slowly disappearing as the resources are dwindling. Tungsten is an ultra-hard metal used in armor-piercing ammunition, nuclear reactors and semiconductors. At least five tungsten mines have closed in the area in recent years, according to state media. Remaining reserves are deeper and harder to extract and process after decades of exploitation, said Li Shangkui, chairman of the Ganzhou-based Jiangxi Yuean Advanced Materials Co., Ltd. Processing factories in Ganzhou now routinely source materials from other provinces or other countries. Zhong's plant imports some raw materials from places like Africa and Cambodia. Major state-owned and private companies in Ganzhou are also ramping up investments abroad. Tungsten producer Ganzhou Haisheng, for instance, announced last year a $25 million investment in a new tungsten plant in Thailand. Whatever the challenges in procuring raw materials, China likely will seek to maintain its dominance in critical minerals, said Fabian Villalobos, an engineer and critical minerals expert at the RAND think tank. The U.S. lags far behind China on critical minerals Between 2020 and 2023, the U.S. imported at least 70 per cent of the rare earth compounds it used from China, according to the U.S. Geological Survey. It has diversified its sources in recent years, but still mainly relies on China. Since beginning his second term in office, Trump has made improving access to critical minerals a matter of national security. But the U.S. has an incredibly long way to go to catch up with China, experts say. The sole operational U.S. rare earths mine, in Mountain Pass, California, is unable to separate heavy rare earths. It sends its ore to China for processing. The U.S. Defense Department has provided funding to the mine's owner, MP Materials, to build new separation facilities. It will take months to build and still only produce a fraction of what is needed. Friction over the issue has opened the way for government-backed financing that was unavailable before, said Mark Smith, who ran the Mountain Pass mine in the early 2010s and now leads NioCorp. It's seeking about $780 million in financing through the U.S. Export-Import Bank to build a processing facility in Nebraska for critical minerals including rare earths. The Defense Department has committed $439 million to building domestic rare earth supply chains, but building a complete mining and processing industrial chain like China's could take decades. 'There are going to be some real issues here unless we can figure out how to get along with China for a period of time while we're developing our own resources and our mainstream processing,' Smith said. The spotlight on critical minerals also provides opportunities for smaller miners to invest in extracting and processing some critical minerals, such as tungsten, considered 'niche' because they are needed in relatively small amounts in key industries, said Milo McBride, an expert on sustainability and geopolitics at the Carnegie Endowment for International Peace. 'For many of these companies, the business strategy hedges on a scenario where the U.S. and China become more confrontational and where trade relations become more uncomfortable,' McBride said. 'And all of a sudden, what was once an uneconomic project somewhere outside of China starts to make more sense.' ___ Associated Press news researcher Shihuan Chen contributed to this story. Simina Mistreanu, The Associated Press
The Guardian
11-06-2025
- Business
- The Guardian
Trump says China will face 55% tariffs as he endorses trade deal
Donald Trump has endorsed the US-China trade deal struck in London that will ramp up supplies of rare earth minerals and magnets needed for the automotive industry, saying it will take total tariffs on Beijing to 55%. Acknowledging that his Chinese counterpart, Xi Jinping, still needed to give his final approval on the terms agreed late on Tuesday night at Lancaster House, the US president disclosed the pact would also facilitate Chinese students' access to US colleges. The 55% tariff total appears at first glance to be a hike from the 30% rate agreed in the truce struck early last month when both sides slashed triple-digit rates. However, a White House official said it merely reflected Trump's worldwide 10% baseline 'reciprocal' tariff on imports, the 20% fentanyl trafficking levy and a 25% pre-existing tariff on China. Writing on his Truth Social platform on Wednesday, Trump said: 'Our deal with China is done, subject to final approval with president Xi and me … We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!' After two days of negotiations in London, US and Chinese officials agreed on a framework to get their trade truce back on track and remove China's export restrictions on the rare earth imports essential to US industries including automotive, electronics and defence, while offering little resolution to wider trade differences. Trump added in his post that the deal included 'full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)' The US secretary of commerce, Howard Lutnick, told reporters the London 'framework' put 'meat on the bones' of an agreement reached last month in Geneva to ease retaliatory tariffs that had reached crushing triple-digit levels It would, he said, allow them to 'implement' the Geneva pact but was subject to the approval of both Trump and Xi. The Geneva deal had faltered over China's curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The London deal comes as the US car industrycame close to halting production because China had choked off the supply of magnets used in windshields and doors. China has a stranglehold on the global market of rare earths and magnets and introduced curbs in April after Trump's decision to launch a trade war.
