“Economies of scale are by far the most important lever that we're pulling to get down to that cost number. And if we can achieve that number, we will be the lowest-cost producer into that marginal market of China,” said Simon Wensley, managing director of Metro Mining.
Australian bauxite producer Metro Mining (ASX:MMI) is targeting up to 7 million tonnes of production by the end of 2025, as the company executes on its plan to expand capacity and lower production costs.
“Economies of scale are by far the most important lever that we're pulling to get down to that cost number,” said Simon Wensley, Metro Mining’s managing director, in a recent Investing News Network interview, noting that optimisation and expansion will drive costs down to US$30 per dry metric tonne delivered.
“And if we can achieve that number, we will be the lowest-cost producer in that marginal market of China,” he said.
Bauxite is the primary ore used to produce aluminium, a valuable, lightweight metal essential to almost all aspects of the global energy transition. Demand for aluminium is expected to significantly increase over the next few years, driven by increased activity in the transportation, electric vehicle and clean energy sectors.
Metro Mining has already produced and sold more than 2 million tonnes of its production in the second half of 2025, Wensley said. He added that the company expects a “very strong” second half, with production volumes expected to reach between 4.5 million and 5 million tonnes by year end.
“Over the next months and the next quarter, we should see real demonstration of that expanded capacity flowing through the market," he noted.
Watch the full interview with Simon Wensley, managing director of Metro Mining, above.
Danielle DiMartino Booth breaks down the latest US consumer and producer price index data, saying it's important for investors to pay close attention to the American consumer.
The CEO and chief strategist at QI Research also discusses dissent at the US Federal Reserve, and how many times the central bank may cut interest rates in 2025.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
The gold price cooled off this week as tariff-related uncertainty reached a resolution.
The yellow metal was thrust into headlines late last week when US Customs and Border Protection told a Swiss refiner that 1 kilogram and 100 ounce gold bars would be subject to Trump administration tariffs that went into effect on August 7.
Gold is one of Switzerland's top exports to the US, and with the country facing a 39 percent levy, questions were rife about what the impact could be. Clarification came on Monday (August 11), when US President Donald Trump said on Truth Social that gold "will not be tariffed."
While the news calmed market participants, Keith Weiner of Monetary Metals believes the incident could have long-term impacts. He said the tariff confusion caused the spread between spot gold and gold futures to blow out, creating difficulties for entities using the market to hedge.
Here's how Weiner explained it:
"Once you've put the scare into everybody, you can't just say, 'Oh, sorry, just kidding.' You can't really do that. And so now we've done damage, and we'll see what happens to that spread over time. We'll see how users of the futures market adapt.
"There are other markets in the world that would be competing for this hedging business — maybe it moves to Singapore, maybe it moves to Dubai, maybe it moves to London, and the US loses not only a little more trust, but also a little bit of volume on what had been the biggest, or what is currently the biggest, futures market."
This week also brought the release of US consumer price index (CPI) and producer price index (PPI) data. On a seasonally adjusted basis, CPI for July was up 0.2 percent from the previous month and 2.7 percent from the year-ago period. Meanwhile, core CPI, which excludes the food and energy categories, was up 0.3 percent month-on-month and 3.1 percent from the same time last year.
While those numbers were largely in line with expectations, seasonally adjusted July PPI figures came in hotter than expected, rising 0.9 percent month-on-month compared to Dow Jones' forecast of 0.2 percent. Core PPI increased 0.9 percent from June compared to an estimated rise of just 0.3 percent.
Speaking about the implications of the data, Danielle DiMartino Booth of QI Research said it shows companies aren't yet passing tariff-related price increases on to consumers.
This is what she said about how these circumstances could develop:
"I do think that we will see where companies feel they can push through price increases — I think we'll see that. We saw quite a bit of food inflation in the PPI, and when you're talking about things like essentials, and especially with very, very low-margin types of sales, we could see what we call the substitution effect begin, where households end up buying other things. The classic is always that they trade down from steak to ground beef, or trade down from beef to chicken.
"We're going to see whether or not that plays out again."
While the PPI data has slightly dampened expectations that the US Federal Reserve will cut interest rates when it meets in September, CME Group's (NASDAQ:CME) FedWatch tool still shows a strong probability of a reduction at that time.
Contemporary Amperex Technology (HKEX:3750,SZSE:300750), better known as CATL, said on Sunday (August 10) that it will halt production at a lithium mine in China for at least three months.
Sources familiar with the matter told Bloomberg that CATL, which is the world's largest electric vehicle battery maker, failed to extend a key mining permit. The company is reportedly in talks about a renewal, but is prepared for a months-long shutdown.
Share prices of lithium miners rose on the news, buoyed by expectations that the CATL mine closure will help reduce oversupply. Excess output has caused Chinese lithium prices to drop 80 percent since the end of 2022, and investors are keen to see a turnaround for the beleaguered battery metal.
Mitsubishi (TSE:8058) is set to acquire a 30 percent stake in Hudbay Minerals' (TSX:HBM,NYSE:HBM) Arizona-based Copper World subsidiary for US$600 million.
Hudbay called Mitsubishi its "strategic partner of choice," while Mitsubishi said the investment will help advance its copper growth plans. A feasibility study is in the works for Copper World, and a definitive feasibility study is expected in mid-2026.
Hudbay shareholders reacted positively to the news, which comes on the back of a strong focus on copper supply after last month's announcement of a 50 percent tariff on US imports of semi-finished copper products and intensive copper derivative products. The company projects that Copper World will result in a direct $1.5 billion investment into the US critical minerals supply chain.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Brien Lundin, editor of Gold Newsletter, shares his thoughts on gold and silver prices, as well as what types of stocks he's focusing on in these sectors.
In his view, the precious metals are set up for a new era.
Click here to sign up for the New Orleans Investment Conference, hosted by Lundin.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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Keith Weiner, founder and CEO of Monetary Metals, discusses gold and silver's performance so far this year and shares his outlook for the rest of 2025.
He also explains what makes today's gold bull market different than those seen in prior years.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
John Kaiser of Kaiser Research shares his outlook for the gold price, also mentioning several junior mining stocks that he's watching right now.
"I think we're in a very special moment," he said.
"All you need to do is believe that gold is not crashing back below US$2,000 (per ounce) to load up on these stocks and be set to make five, 10 times your money."
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
