Justino Mora

Big news in copper: Teck Resources Limited and Anglo American announced today a merger of equals, creating the Anglo Teck Group, a new heavyweight in global copper. From a copper perspective, the sustainable impact evaluation of this move is pretty complex. Across the two companies, there are 8 operations where they are operators or shareholders with different ownership participation, some even with minority stakes. Using the Skarn Associates database, we immediately looked at the ownership and water impact profile of the combined group. A few important takeaways: 🟢 Anglo American currently sits in a relatively low quartile for water consumption per tonne of copper produced. 🔴 Teck, by contrast, is in the 4th quartile, largely driven by its 100% ownership of Highland Valley, a relatively low-grade copper deposit located in a non-water-stressed environment. 🟡 The merged company, under current water use conditions, positions in the 3rd quartile of water consumption intensity In Chile and Peru, none of the copper operations are fully owned: Carmen de Andacollo is 90%, while all others are 60% or less, with water use of two major operations not directly reported by either one of the companies. This matters because water use at shareholder level becomes a real challenge to assess in these cases, yet it is exactly what financial institutions are required to evaluate under frameworks like IFRS water-related disclosure. The merged group will not only reshape copper, but also highlight how ownership structures complicate #water risk exposure assessments: an issue that will increasingly sit at the intersection of #mining, #metals, and #finance.

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In this week’s Battery Commodity update from Barfly`z in Zurich, we sit down with industry veteran Mark of Lost Soldier Oil & Gas, who presents what may be the largest natural gas discovery in the Rocky Mountains in over 50 years with up to 50 TCF. Production is set to begin this year making this a turning point in the North America energy landscape. We also highlight positive support for midstream infrastructure at EcoGraf, outstanding gold grades in British Colombia’s Golden Triangle from Goliath, and financing success for Silver Crown. Thanks for hosting us https://barflyz.ch/ In natural gas markets, 50 TCF refers to 50 trillion cubic feet of natural gas. https://lostsoldier.com/ Lost Soldier Oil and Gas LLC Marc Bruner EcoGraf® Limited (ASX:EGR, FSE:FMK) Goliath Resources Limited Juggernaut Exploration Silver Crown Royalties Inc.

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🇬🇳 EGA to exit Guinea after mine expropriation. Emirates Global Aluminium is ending its bauxite mining operations in Guinea after the government seized its assets. This concludes a dispute over EGA's unmet commitment to build a local refinery. The company's Guinea Alumina Corp. unit is now terminating all employees and contracts. As of Friday, the Guinean government will have full control and responsibility for the sites. This is a major development for the global bauxite market, as Guinea is the world's largest producer of the ore. The state's direct takeover of a significant operation introduces a new dynamic for aluminum raw materials. #Mining #Aluminum #Bauxite #Guinea #SupplyChain #Commodities Source: Bloomberg

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Book Review: Critical Minerals and the Future of the U.S. Economy Edited by Dr. Gracelin Baskaran & Dr. Duncan Wood (CSIS, Feb 2025) This new CSIS volume is one of the most comprehensive reviews yet of how the U.S. can secure its critical mineral supply chains. With contributions from 15 experts, it examines: How minerals underpin semiconductors, defence, EVs, and renewables. The impact of recent legislation (IRA, CHIPS, DPA) on supply chain resilience. Systemic challenges like permitting reform, midstream gaps, and minerals diplomacy. The need for a holistic U.S. strategy that combines domestic mining, recycling, responsible sourcing, and international cooperation. It’s a policy-ready toolkit that treats critical minerals not as a niche issue, but as central to U.S. economic security, defence, and competitiveness. If you read nothing else, start with Dr. Baskaran’s introduction — it’s excellent. 👉 My only critique: the book doesn’t sufficiently stress the need to prioritise projects based on economic viability. From 20 years in the junior mining industry, I’ve seen too many “critical” projects that are fundamentally uneconomic. China’s edge lies not just in supply, but in relentlessly focusing on cost competitiveness and walking away from what doesn’t work. My recommendation? The U.S. should build a global project ranking based on practical, geopolitical, and economic factors — and prioritise investment accordingly. Gracelin Baskaran, PhD Meredith Schwartz Duncan Wood Dennis Gibson Jeff Townsend This book is available free via CSIS link in the article. If you enjoy please follow and share :)

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🔥 Burning Issue #3 — Overestimation of Reserves & Grade Quality in Mining M&A You can’t mine a spreadsheet. Yet in far too many mining M&A deals, buyers fall for “paper tonnes” — resources that look great in the model, but don’t exist in the ground. 📉 Overestimated reserves and inflated grades can destroy value faster than falling commodity prices. Two case studies that hit hard: • Bre-X Minerals (Indonesia): The most infamous case of fraudulent resource estimation — 70 million ounces of “gold” vanished overnight. Billions in market cap lost. • Taseko’s Prosperity Mine (Canada): Claimed robust copper-gold reserves, but First Nations opposition and technical review raised questions about ore quality and viability. The mine never got off the ground despite large tonnage claims. 🔍 Why it happens: • Sparse drilling or poor sampling methods. • Over-reliance on inferred resources to pump valuation. • Unrealistic cut-off grades to bulk up tonnage. • Pressure to “package” deposits for quick sale. ⚠️ The trap: CPs/QRPs often stop short of quantifying uncertainty, and buyers skip verification in fear of losing the deal. ✅ What smart acquirers do: • Re-run resource models with independent teams. • Drill verification holes before signing anything. • Apply conservative cut-off grades & recovery assumptions. • Use AI-based reconciliation tools to flag model mismatches early. 💬 This is Issue #3 in my “Burning Issues in Mining M&A” series. Next up: Integration Failure & Cultural Clashes — the silent reason synergies die. 📢 Have you seen a resource model that didn’t survive contact with reality? Share your war story ⬇️ #Mining #MandA #ResourceEstimation #JORC #Geology #AIinMining #Leadership #DueDiligence #BurningIssues

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How is #mining preparing for 2026’s biggest risks and opportunities? . . . Thanks to EY for recently launching their annual top 10 list where several trends stand out as we enter the new year: 1. Operational complexity is new to the list and has rocketed to #1. 2. Rising costs and productivity is up from #6 to #2. 3. Despite increasing concern and volatility in geopolitics, it is down from #3 to #7. 4. Workforce is new to the list and lands right in the middle at #5. Are these the same trends you're seeing on the ground? Let me know in the comments below. To check out launch replay, visit: https://lnkd.in/gMV-m6eT #MiningIndustry #Engineering

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