Mining boss calls for price support to challenge China’s critical minerals dominance

Keep knowledgeable with free updatesSimply signal as much as the Mining myFT Digest — delivered on to your inbox.Western governments ought to present worth ensures for vital minerals miners if they’re to compete with Chinese language rivals who obtain large state assist, the boss of main platinum producer Sibanye-Stillwater has mentioned.The feedback by Neal Froneman come as industrialised nations have turn into alarmed by China’s dominance within the manufacturing and processing of vital minerals — however have stopped in need of setting costs for uncooked supplies or making a joint shopping for programme.“They should degree the taking part in area for us as mining corporations,” Froneman, chief government of the Johannesburg-listed platinum and battery metals producer, advised the Monetary Occasions. “If we mine for the US and even Europe, we must be assured sure costs in order that we get the proper returns.”Over the previous 12 months, China has halted exports of sure supplies reminiscent of uncommon earths, gallium, germanium and graphite, making a squeeze on manufacturing provide chains for the defence, automotive and semiconductor industries in western nations.The concept of a joint shopping for mechanism, through which the US and allies reminiscent of Australia would commit to buying supplies at sure minimal costs, has been gaining traction for the reason that G7 summit final month, in line with individuals accustomed to the governments’ considering. G7 members pledged on the summit to develop “standards-based markets” for vital minerals, which is seen as a possible first step in the direction of a joint shopping for pool.Sibanye has expanded into battery metals lately because it seeks to learn from rising demand as a result of electrical autos and the vitality transition. It has a lithium mission in Finland and a nickel refinery in France.Froneman, who is about to retire in September, mentioned that Chinese language mining rivals had entry to a decrease value of finance and adopted totally different environmental requirements that reduce their prices. However he defended Sibanye’s determination to cater primarily to prospects within the west.“We recognised that the world was going to de-globalise, and polarise across the east and the west. And we particularly selected to not be a contract miner for the Chinese language, like so many miners are,” mentioned Froneman, who has led Sibanye because it was fashioned in 2013.Sibanye has acquired some authorities assist for particular initiatives, however Froneman known as on the US and Europe to do extra.“We incur increased prices, and we have now increased prices of capital. There must be some type of assist to make us aggressive, as a result of the mannequin is that it’s a western-world, capitalist system. Shareholders require returns,” he mentioned.The corporate, which has an enterprise valuation of $7bn, reported web losses within the 2023 and 2024 monetary years, as a result of low costs for platinum and palladium, and a writedown on its US operations.Richard Stewart, Sibanye’s chief regional officer in South Africa, is because of succeed Froneman from October.Sibanye’s Finnish lithium mission acquired a €500mn mortgage final 12 months backed by Finland’s Export Credit score Company, the European Funding Financial institution and different funders. Its GalliCam mission in France, which is repurposing a nickel refinery to provide precursor battery metals, has been chosen for a €144mn grant from the EU Innovation Fund.Its initiatives within the US have acquired tax credit that can be price as a lot as $60mn this 12 months, in line with firm studies.