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At the beginning of the year, there were some really big deals in different industries. For example, Newmont acquired Newcrest Mining for US$19.5 billion, and Glencore spent US$8.9 billion for Teck’s coal business. The lithium industry also had a big moment with a US$10.6 billion merger between Allkem and Livent.
Underneath these big deals, the stories of uranium and lithium were interesting. Uranium prices went very high, reaching $80 per lb. in November because there was not enough supply. But lithium prices dropped a lot, going below $20,000 per tonne in late November because of problems in the electric vehicle market and the global economy.
A big theme in 2023 was countries wanting control over their resources and the money in the industry. Countries with important minerals became really important, and big countries and companies tried to get their attention. In response, governments wanted not just money and a part of the business but also more investment to help local businesses that process minerals and make batteries.
Mexico, Chile, and Mali were important in this, making new rules to control mining and have more say over important resources like lithium. Panama had a deal with First Quantum Minerals, but people were not happy, and the court said no to the deal, so the mine closed.
China and the United States also said they want to control important minerals, and Saudi Arabia joined the mining world using its money to have a part of Vale’s new metals business and make deals for minerals.
Getting enough capital became a big problem, ranking as the second-highest risk in a big survey about mining risks and opportunities. Some money came from different sources like car companies, battery makers, and governments, but it was not enough for the big changes needed for cleaner energy.
The cost of money went up, and it got harder for companies to get money because of problems in the economy. North America was close to having a bad economic time, so it was not easy to get money for mining., and companies looking for new mines had a hard time getting attention from investors.
Even with all these problems, some people in the industry are still hopeful, thinking that there could be a rebirth or a new start for mining.
The future is unsure, and we don’t know if this hope will lead to a better time for mining or if it’s just a moment in the ever-changing world of global resources. We’ll have to wait and see what happens next year and how it affects the mining industry.
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