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July 14, 2024
Pearl Gull is pleased to advise that it has entered into a binding term sheet to acquire 100% of the fully paid ordinary shares in Huemul which in turn has signed an agreement and is negotiating a further agreement for it to have a right to earn up to 80% of the equity in a privately held Chilean-company, NeoRe SpA (NeoRe).
Highlights:
- Pearl Gull Iron Limited (ASX: PLG) (Pearl Gull, PLG or the Company) has entered into a binding agreement to acquire Huemul Holdings Pty Ltd (ACN 665 254 491) (Huemul) (the Acquisition). Huemul has signed an agreement and is negotiating a further agreement to have the right to earn up to an 80% interest in NeoRe SpA.
- NeoRe SpA is a Chilean company that holds tenements and tenement applications in Chile that are highly prospective for Ionic Adsorption Clay (IAC) Rare Earth Elements (REEs) – the La Marigen Project
- The La Marigen Project consists of 5 tenement/tenement application areas covering a combined area of ~22,800ha along the coastal belt of Chile, an emerging IAC REE province
- The coastal belt of Chile is underexplored; however, the belt has numerous analogies with respect to the geology and weathering profile of the prolific southern China ionic rare earth province that spans from Yunnan in the southwest to Zhejiang in the southeast
- Following the acquisition of Huemul, the Company proposes an exploration programme at the La Marigen Project, drawing on leading geochemical and geophysical methodologies to identify priority drill targets
- The region is known to host mineralised clay horizons that are highly enriched in REE elements such as (Nd+Pr & Dy+Tb) as demonstrated at the nearby advanced IAC REE project, Penco, owned by TSX-listed Aclara Resources Inc (TSX: ARA) (Aclara)
- Importantly, the style of REE enrichment in this coastal belt frequently results in a mineral assemblage skewed towards heavy rare earth elements (HREE)
- NeoRe SpA's in-country team has extensive knowledge and experience operating in the region and was instrumental in the development of the target generation of rare earth resources, that led to resources that underpin Aclara’s Penco Project
- The Company will also assess further complementary mineral exploration opportunities in the region to assess value accretive opportunities in this IAC REE district
- Experienced minerals industry Executive, Dr John Mair, to join the Board and oversee the Company’s REE strategy. Dr Mair has over a decade of experience in the rare earth sector through his integral role in resource development, and metallurgical and feasibility studies of the Kvanefjeld project in Greenland
NeoRe holds 4 granted tenements and is the applicant pursuant to tenement applications that are considered to be highly prospective for IAC REEs, collectively covering a surface area of ~22,800ha and which comprise the La Marigen Project. Further details are provided in the Tenement Schedule in Appendix 5.
In parallel with the Acquisition, experienced Rare Earth industry executive Dr John Mair will join the Board of Pearl Gull and will provide guidance and oversight to the exploration activities in relation to the La Marigen Project.
The NeoRe in-country exploration team is highly credentialed and has extensive knowledge and experience operating in the region. They have a robust track record of delineating and developing REE resources and following this transaction will be well positioned to progress the La Marigen Project.
The Acquisition and proposed farm-in to the La Marigen Project would further strengthen the asset portfolio of Pearl Gull with the Company seeking to leverage its network in the resources industry to provide new opportunities for its shareholders while still seeking to realise value from the Cockatoo Island Project, located on Cockatoo Island, situated off the Northwest coast of Western Australia.
Chairman Russell Clark commented:
“The farm-in to the La Marigen Project provides the Company with an opportunity to potentially acquire an interest in an emerging ionic adsorption clay rare earth elements region, known to host high grades. Importantly the project area is located in close proximity to Concepción, which is a major industrial city on the coast of Chile.
The limited surface sampling programme within the project area returned results commensurate with reported occurrences of IAC REE deposits in the region. Additionally, our partners at NeoRe conducted (un-certified) bulk sample testing (200kg sample) at the University of Concepción, which returned preliminary results suggesting that the project areas are reasonably likely to host disorbable IAC REE.
This demonstrates the potential that the region is prospective to host IAC REE and provides the Company with an exciting opportunity within an emerging region."
Click here for the full ASX Release
This article includes content from Pearl Gull Iron Limited , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
PLG:AU
04 July
Top 5 Canadian Mining Stocks This Week: Mkango Gains 90 Percent on Spin-out News
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
On Monday (June 30), Statistics Canada released its natural resource indicator report for the first quarter of 2025.
The data shows a 1.6 percent growth quarter-over-quarter in the real gross domestic product (GDP) of the sector during the three-month period, indicating that the sector outpaced the broader economy, which posted an increase of just 0.5 percent.
The energy subsector led the way with a 2.2 percent gain, driven by increases of 2 percent in crude oil and 3.4 percent in electricity.
The minerals and mining sector increased by just 0.4 percent overall. Within it, the manufacturing of metallic mineral products grew 4 percent, and non-metallic mineral extraction rose 3.2 percent. On the other hand, metallic mineral extraction declined by 2.9 percent
Although real GDP increased, exports declined at the start of the year. Energy exports fell by 1.8 percent, due to a 12.4 percent decrease in outgoing refined petroleum products. Similarly, mineral and mining exports were also down by a more modest 0.9 percent.
South of the border, the “One Big Beautiful Bill” was passed by the US Congress on Thursday (July 3). The legislation is a cornerstone policy of President Donald Trump’s economic policy and includes several significant tax and spending cuts.
Among the provisions is an extension of US$4.5 trillion in tax breaks originally enacted by Trump in 2017 during his first term.
The package will increase defense and national security spending, including significantly increased funding for Immigration and Customs Enforcement and money earmarked for the development of the “Golden Dome” missile defense system.
To offset the decrease in tax income and increase in spending, the government made US$1.2 trillion in cuts to Medicaid and food stamps and clawed back green energy tax credits.
Critics of the bill have warned that it would result in increased deficit spending by the government, as shortfalls are expected to add more than US$3.3 trillion to the federal deficit over the next decade.
Markets and commodities react
In Canada, markets were closed on Tuesday (July 1) for the Canada Day holiday. Equity markets saw moderate gains this week with the S&P/TSX Composite Index (INDEXTSI:OSPTX) rising 1.24 percent to close at 27,036.16 on Friday. The S&P/TSX Venture Composite Index (INDEXTSI:JX) fared better, gaining 3.9 percent to 755.22, while the CSE Composite Index (CSE:CSECOMP) climbed 1.9 percent to 120.92.
Markets in the US also had a shortened week and were closed on Friday for the July 4 holiday. US equities were also in positive territory this week, with the S&P 500 (INDEXSP:INX) gaining 2.09 percent to close Thursday at 6,279.36, the Nasdaq 100 (INDEXNASDAQ:NDX) climbing 1.7 percent to 22,866.97 and the Dow Jones Industrial Average (INDEXDJX:.DJI) rising 0.77 percent to 44,828.54.
The gold price rose 1.85 percent to US$3,333.90 by Friday at 4 p.m. EDT, while the silver price ended the week up 2.39 percent to US$36.85.
In base metals, the COMEX copper price was unchanged this week at US$5.12 per pound. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) gained 1.49 percent to close at 552.55.
Top Canadian mining stocks this week
How did mining stocks perform against this backdrop?
Take a look at this week’s five best-performing Canadian mining stocks below.
Stock data for this article was retrieved at 4 p.m. EDT on Friday using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.
1. Mkango Resources (TSXV:MKA)
Weekly gain: 90 percent
Market cap: C$147.17 million
Share price: C$0.57
Mkango Resources is a rare earths exploration and development company focused on advancing rare earths mining and recycling projects.
The company owns the Songwe Hill rare earths project in Southeast Malawi. The property comprises 11 retention licenses and has undergone historic exploration dating back to the 1980s.
A July 2022 feasibility study for the property demonstrated economic viability with a post-tax net present value of US$559 million, an internal rate of return of 31.5 percent and a payback period of 2.5 years.
The report was based on a February 2019 mineral reserve estimate that reported measured and indicated total rare earth oxide (TREO) resources of 297,400 metric tons from 21.03 million metric tons of ore with an average grade of 1.5 percent and inferred resources of 366,200 metric tons of TREOs from 27.54 million metric tons of ore with an average grade of 1.33 percent.
The company is also developing the Pulawy rare earth separation plant in Poland in partnership with Grupa Azoty Zakłady Azotowe. Once complete, the plant is expected to produce 2,000 metric tons per year of neodymium, praseodymium and didymium oxides. It will also produce 50 metric tons per year of dysprosium and terbium oxides.
Additionally, Mkango holds a 79.4 percent interest in Maginito, which owns HyProMag, a company specializing in the recycling of rare earth magnets. The remaining 20.6 percent interest is held by CoTec Holdings (TSXV:CTH,OTCQB:CTHCF).
Shares in Mkango were up this week after the company announced on Thursday that it had entered into a definitive business combination agreement with Crown PropTech Acquisitions. The company stated that its subsidiary, Lancaster Exploration, and other subsidiaries would merge with Crown PropTech to create what it describes as a vertically integrated, global rare earths platform that incorporates Songwe Hill and the Pulawy separation plant. The combined entity will be named Mkango Rare Earths and trade on the Nasdaq.
Following the deal, which is targeted to close in Q4, Mkango will focus on its rare earths recycling business.
2. Lithium South (TSXV:LIS)
Weekly gain: 50 percent
Market cap: C$55.61 million
Share price: C$0.18
Lithium South is an exploration and development company working to advance its Hombre Muerto North lithium brine project in Argentina. The property consists of nine concessions covering a land package of 5,687 hectares.
According to its April 2024 preliminary economic assessment, the company is planning to install production wells at the Tramo, Natalia Maria and Alba Sabrina concessions. The assessment demonstrated project economics with a post-tax net present value of US$934 million, an internal rate of return of 31.6 percent and a payback period of 2.5 years.
The included mineral resource estimate for the three concessions reported a combined measured and indicated lithium resource of 297,400 metric tons from 404.1 million cubic meters of brine with an average concentration of 736 milligrams per liter.
The most recent news from Lithium South was released on June 25, when the company provided an update on its environmental impact assessment. Lithium South said that it had received a response from the mining secretariat of the Salta Province regarding the assessment and was in the process of responding to obtain final approval, which would allow the company to construct a pilot plant for its definitive feasibility study.
3. Oceanic Iron Ore (TSXV:FEO)
Weekly gain: 46.81 percent
Market cap: C$55.61 million
Share price: C$0.345
Oceanic Iron Ore is an exploration and development company working to advance its Ungava Bay iron projects in Northern Québec, Canada.
The properties consist of 3,000 claims covering a total land package of 1,500 square kilometers across three project areas: Hopes Advance, Morgan Lake and Roberts Lake.
A January 2020 preliminary economic assessment for Hopes Advance presented project economics, showing a post-tax net present value of US$1.4 billion, an internal rate of return of 16.8 percent and a payback period of 6.7 years.
The report also included a mineral reserve estimate for Hopes Advance with a measured and indicated resource of 515 million metric tons of iron concentrate from 1.39 billion metric tons of ore with an average grade of 32.1 percent.
On Monday, Oceanic announced it settled C$139,666 in accrued interest from several debentures by issuing common shares at a price of C$0.24. While its share price didn’t move much on that news, it picked up steam significantly in the latter half of the week.
4. Excellon Resources (TSXV:EXN)
Weekly gain: 44.44 percent
Market cap: C$55.61 million
Share price: C$0.325
Excellon Resources is an exploration and development company that is advancing its recently acquired Mallay silver mine in Peru back into production.
Mining at the site produced 6 million ounces of silver, 45 million pounds of zinc and 35 million pounds of lead between 2012 and 2018 before the operation was placed on care and maintenance.
On June 24, Excellon announced that it had completed its acquisition of Minera CRC, and its Mallay mine and Tres Cerros gold-silver project in Peru.
Excellon began the court-supervised acquisition process in October 2024. On March 11, Excellon announced that it had entered into a definitive agreement with Adar Mining and Premier Silver, which resolved any outstanding disputes between Adar, Premier, and Minera, and paved the way to complete the transaction.
In the June release, the company stated that it will immediately commence the next phase of its strategy to restart the mine. As Mallay is fully permitted with infrastructure in place, Excellon is aiming for run-rate silver production in Q2 of next year.
Additionally, the company announced on Thursday that it had appointed Mike Hoffman to its board of directors. Hoffman has been in the mining sector for over 35 years, and has experience with developing mines in Latin America.
5. Benz Mining (TSXV:BZ)
Weekly gain: 40.54 percent
Market cap: C$121.72 million
Share price: C$0.52
Benz Mining is a gold exploration company that is focused on advancing projects in Québec and Western Australia.
Its flagship Eastmain project consists of an 8,000 hectare property located in Central Québec within the Upper Eastmain Greenstone belt. The most recent mineral resource estimate from May 2023 reported an indicated resource of 384,000 ounces of gold from 1.3 metric tons of ore grading 9 g/t gold, and an inferred resource of 621,000 ounces of gold from 3.8 metric tons grading 5.1 g/t.
Earlier this year, Benz acquired the Glenburgh and Mt Egerton gold projects in Western Australia from Spartan Resources (ASX:SPR). It has spent much of 2025 exploring Glenburgh, which covers an area of 786 square kilometers and features 50 kilometers of strike. The site hosts six priority extension targets and 5 kilometers of exploration trend with over 100 parts per billion gold.
A November 2024 mineral resource estimate for Glenburgh showed an indicated and inferred resource of 510,000 ounces of gold from 16.3 million metric tons of ore with an average grade of 1 g/t gold.
On June 30, the company reported that it had encountered high-grade intercepts during its drill program at Glenburgh. One hole returned a grade of 2.9 g/t over 72 meters which included an intersection of 5.1 g/t over 39 meters at a depth of 319 meters.
The company stated that the results represent a significant step forward in “understanding and expanding the gold system.”
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many mining companies are listed on the TSX and TSXV?
As of February 2025, there were 1,572 companies listed on the TSXV, 905 of which were mining companies. Comparatively, the TSX was home to 1,859 companies, with 181 of those being mining companies.
Together the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
How do you trade on the TSXV?
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange's trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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23 June
Thick zones of HM mineralisation observed across Douala HM Project
DY6 Metals Ltd (ASX: DY6, “DY6” or the “Company”) is pleased to announce the initial visual estimations from the reconnaissance exploration program at the Douala Basin HMS Project, Cameroon. Desktop studies incorporating detailed geological mapping, geophysics, and known mineral occurrences, were used to define initial, high priority targets for ground- truthing. The reconnaissance programme, which consisted of hand auger and channel sampling, was successful in identifying high estimated concentrations of heavy mineral (HM) mineralisation across all the six tenements that make up the project. Additionally, the Company’s consultants have observed the presence of natural rutile grains within panned concentrates.
HIGHLIGHTS
- The Company’s reconnaissance auger and channel sampling programme has been completed at the Douala Basin HMS Project
- Reconnaissance sampling undertaken across the 6 Douala Basin tenements has identified thick zones of high estimated concentrations of heavy minerals (HM) as well as natural rutile
- Work at the Douala Basin Project followed up on historical HM occurrences identified by previous Eramet drilling, as well as priority areas identified through the Company’s internal reviews
- Samples collected from the reconnaissance program are due to be submitted for laboratory analysis in the coming weeks, with results expected in the September quarter
- At Douala Basin, exploration will transition to a detailed campaign of auger drilling
Samples collected from this initial exploration programme are currently being prepped for dispatch to the Company’s laboratory for analysis in South Africa, with results expected in the September quarter.
Technical Consultant, Cliff Fitzhenry, commented: “While the Company’s primary focus is on the Central Rutile Project, where we have recently reported the presence of wide-spread residual natural rutile mineralisation, we believe that the Douala Basin HMS project has significant potential. The reconnaissance programme has over the last few weeks demonstrated the potential of the area, with the identification of high concentrations of visible heavy mineral sands across the project tenements through a mixture of auger, channel, and soil sampling work. Pleasingly, we have also observed natural rutile grains at Douala Basin.
We look forward to the assay results of the reconnaissance programme in the coming months.”
Reconnaissance exploration at the Douala Basin HMS Project
As announced on 5 June 2025, the Company commenced reconnaissance auger and grab sampling programmes at the Central Rutile and Douala Basin HMS projects, Cameroon. At the Douala Basin project, the Company has completed 12 hand auger drill holes (refer Figure 1), collecting 53 samples in the process, as well as collected 38 channel samples from 11 surfaces for analysis (refer Tables 1 & 2).
Table 1: Reconnaissance auger drill holes completed to date at the Douala Basin HMS Project showing maximum visual estimates of HM% from panned concentrate of the 1m samples.
Cautionary Statement:
The Company cautions that, with respect to any visual mineralisation indicators, visual observations and estimates of mineral abundance are uncertain in nature and should not be taken as a substitute or proxy for appropriate laboratory analysis. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results from the drilling and sampling programmes will be required to understand the grade and extent of mineralisation. Initial assay results are expected in August 2025.
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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19 June
Critical Metals Secures US$120 Million Loan LOI for Tanbreez Rare Earths Project
Critical Metals
(NASDAQ:CRML) got a boost on Monday (June 16), landing a letter of interest
(LOI) for a non-dilutive US$120 million funding package from the Export-Import Bank of the US (EXIM).
The funds would be used to advance its Tanbreez rare earths project in Southern Greenland.
Touted as one of the world’s largest rare earths deposits, Tanbreez is expected to produce up to 85,000 metric tons of rare earth material annually, with more than 27 percent classified as heavy rare earth elements.
“This is a tremendous milestone for Critical Metals Corp which highlights to the rare earths supply chain, Western Governments and investors that Tanbreez is a world-class asset that will provide mission-critical rare earth metals to counter China’s continued dominance,” said Critical Metals CEO and Chairman Tony Sage.
The funding would support pre-production, technical studies and early mining activities. EXIM’s financing falls under its new Supply Chain Resiliency Initiative and comes with a 15 year repayment term.
Critical Metals acquired
a controlling stake in Tanbreez in June 2024 in a transaction valued at up to US$211 million. It expects the asset to require US$290 million in capital expenditure to advance to initial commercial production.
The US$120 million from EXIM would support key early stage work at Tanbreez, including technical and economic studies, pre-production activities and the start of mining operations.
The company is aiming to complete a definitive feasibility study by late 2025.
Critical Metals also plans to invest an additional US$10 million in exploration this year, giving it the option to increase its ownership in the project to 92.5 percent through the acquisition of a further 50.5 percent stake.
“We are now razor focused to put Tanbreez into production as soon as possible," said Sage
.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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18 June
Eclipse confirms high-value, coarse-grained rare earths at Grønnedal, backed by an efficient processing pathway
Eclipse Metals Limited (ASX: EPM) (Eclipse or the Company) is pleased to confirm that its Grønnedal rare earth elements (REE) Project in southwest Greenland continues to solidify its position as a strategically important and globally significant source of REE. The Project metrics are supported by robust scientific data and including benchmarked mineralogical results.
Project Highlights:
- Dominant synchysite, bastnasite and monazite mineralogy - ideal for Nd-Pr permanent magnet feedstock.
- Coarse-grain size of key REE minerals with up to 54% liberation, supporting low- cost, conventional flotation pathways.
- The defined resource of 89Mt represents approximately 6% of the carbonatite body, with extensive growth potential.
- Niobium ~4,670ppm, Yttrium ~777ppm, and HREE credits enhance the Project’s overall economics.
- Tier-1 Greenland location with deep-water access and no uranium permitting constraints.
- Mineralogical studies provide a strong foundation for upcoming metallurgical and process design work.
A recent mineralogical study completed by SGS Canada has confirmed the presence of high-value rare earth minerals, including Synchysite, Bastnasite and Monazite – highly sought-after hosts of magnet rare earth elements (Nd, Pr, Dy, Tb).
The recent mineralogical assessment returned significantly elevated niobium grades, ranging from <40ppm to 4,670ppm, and yttrium values ranging from 39ppm to 777ppm (refer Appendix 1), highlighting the polymetallic nature of the mineralisation and its potential for enhanced downstream value capture.
Both elements are increasingly sought after for superconductors, defence alloys, and advanced electronics, further elevating Grønnedal’s importance within the global critical minerals ecosystem.
Importantly, the test work confirms that the mineral assemblage is highly amenable to conventional processing, aligning with proven flowsheets successfully applied at other globally recognised REE operations, including Mountain Pass (USA) and Mount Weld (Australia).
Commenting on the SGS mineralogical results, Eclipse Metals Executive Chairman Carl Popal said:
“The Grønnedal REE complex continues to deliver compelling results that reinforce its emerging position as a globally strategic rare earths project. With 89 million tonnes now defined, the combination of scale, favourable mineralogy, coarse grain size and demonstrated processability sets Grønnedal apart as one of the few Western rare earth deposits with a clear pathway toward scalable development.
“The polymetallic nature of the mineralisation, combined with high liberation rates confirmed through advanced mineralogical studies, supports the potential for efficient recovery using well- established processing routes, further strengthening Grønnedal’s relevance to EU and North American critical minerals supply chains.
“Eclipse remains committed to responsible and transparent development in Greenland while advancing the project with a disciplined focus on value creation and global supply chain diversification,”
Click here for the full ASX Release
This article includes content from Eclipse Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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17 June
Expert: Can a United Front Loosen China’s Rare Earths and Critical Minerals Hold?
As western automakers reel from yet another round of Chinese export restrictions on rare earths, the urgency to create a counterweight to Beijing’s dominance over global mineral supply chains is reaching new heights.
At the center of the conversation is a persistent and disruptive strategy: Chinese state-backed firms flood global markets with critical minerals, push prices below sustainable production levels and wipe out foreign competition.
In response, experts like Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies, are calling for a fundamentally different playbook.
In her view, it's time for nations to coordinate their market power and engage in collective deterrence.
“If countries continue to operate independently instead of collectively, China will retain its dominant position because no single nation has enough market leverage on its own,” Baskaran argues in her recent commentary.
The scale of disruption is difficult to overstate. In just three years, global prices for core energy transition minerals have collapsed. Between May 2022 and May 2025, prices for cobalt fell nearly 60 percent. Nickel prices plunged 73 percent, while lithium prices cratered by almost 87 percent. In each case, price collapses coincided with waves of supply from China or Chinese-backed operations, forcing western producers to shut down or defer investment.
Baskaran further explains that these price dynamics aren’t accidental.
Chinese companies — which often receive subsidies, low-interest loans or direct state support — can afford to operate at near-zero or even negative profit margins, squeezing out foreign firms that need to show a return on capital.
When it comes to rare earths, with 90 percent of refining under its control, China can suppress prices long enough to bankrupt competition, then raise prices once dominance is assured.
For Baskaran, the closure of Jervois Global's (ASX:JRV,OTC Pink:JRVMQ) cobalt mine in Idaho and BHP's (ASX:BHP,NYSE:BHP,LSE:BHP) Nickel West project in Australia illustrate how fragile western efforts are when exposed to this kind of strategic economic pressure.
Tariffs alone won’t cut it
To date, responses from the US have largely focused on domestic industrial policy — subsidies, tax credits and isolated tariffs. But given the country’s relatively small share of global minerals demand — just 1.7 percent for rare earths, for example — US actions alone are unlikely to move the needle.
“While tariffs can be an effective instrument, a single country acting alone is unlikely to make a significant difference for mineral prices given the small size of their offtake markets,” Baskaran stresses.
Instead, she suggests that any meaningful response must involve coordinated policy across a coalition of major consuming nations. The proposed solution is a shared “anchor market” — a bloc of like-minded countries that harmonize tariffs, coordinate investment protections and implement shared procurement rules.
If executed well, she believes this approach could flip the current dynamic, placing reciprocal pressure on China while supporting market conditions where western producers can survive.
“A unified market of this scale would be capable of challenging China’s dominance and providing the West with meaningful strategic leverage,” she adds in her piece.
Such a coalition is not hypothetical. The Minerals Security Partnership (MSP), an initiative involving 14 countries and the EU, already exists to foster cooperation on supply chain resilience.
With a combined market of nearly 2.8 billion people — double the population of China — Baskaran states that the MSP represents a latent force that, if fully activated, could counterbalance Chinese leverage.
Leverage through scale and policy
The power of an anchor market lies in its ability to send long-term price signals and create investor certainty.
Gradual import quotas, for instance, could mandate that a growing share of mineral inputs — starting at 10 percent and scaling to 60 percent over a decade — come from within anchor market countries.
Baskaran explains that unlike tax incentives, which are temporary and non-binding, quotas offer a durable guarantee that demand will materialize, helping de-risk large-scale mineral investments.
Equally important is investment protection. Chinese firms continue to buy up critical minerals assets abroad, even in a weak price environment, ensuring that they control future supply. If this trend continues, any market-based response from the west may simply enrich Chinese shareholders in the long run.
Australia’s key role and the G7’s moment for market unity
Baskaran highlights that, among potential partners, Australia stands out.
With rich deposits of 31 critical minerals and advanced mining capabilities, it is essential to any serious diversification plan. Mining already contributes over 13 percent to its GDP, compared to just over 1 percent in the US.
Politically, Australia has taken a hardline stance on Chinese influence, from banning Huawei in 2018 to imposing university research safeguards and building a state-backed mineral reserve to reduce foreign dependency.
The G7 summit in Canada offers a unique moment to align policy. All G7 countries have identified critical minerals security as a priority. By formalizing the anchor market concept, Baskaran argues that the G7 nations and their partners could finally mount a credible economic counteroffensive: “The anchor market can shift leverage away from Beijing and toward a more resilient, rules-based minerals ecosystem.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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16 June
Burgum Endorses Colosseum Rare Earths Project in Continued Critical Minerals Push
The Trump administration is fast tracking development of Dateline Resources’ (ASX:DTR,OTC Pink:DTREF) Colosseum rare earths project in California as part of its push to boost domestic critical minerals supply.
In a recent interview, Secretary of the Interior Doug Burgum highlighted the project as a priority under the government's critical minerals strategy, stating that the US has "to get back in the game in a serious way around critical minerals.”
For his part, US President Donald Trump has called the project "America’s second rare earths mine.” He first announced Colosseum's approval in an April 21 Truth Social post, listing it as a weekly achievement.
The Colosseum project sits in the Walker Lane Trend in East San Bernardino County, California, only 10 kilometers north of MP Materials’ (NYSE:MP) Mountain Pass mine, the only operating rare earths mine in the US.
Mountain Pass is also the highest-grade rare earths mine in the world.
According to Burgum, the endorsement from the government stems from the US’ push to restart domestic rare earths production and reduce dependence on other countries such as China.
Currently, China remains the biggest rare earths producer by far, producing 270,000 metric tons in 2024. That’s about 70 percent of the total production for the year, which was recorded at 390,000 metric tons.
The ongoing trade war has created tensions between the US and China, raising questions about supply chain security.
Some relief was seen last week — the BBC reported that China has agreed to supply US companies with magnets and rare earths as part of Trump’s deal with Xi Jinping, president of China. In return, the US said it will walk back its threats to revoke the visas of Chinese nationals at US colleges and universities.
Trump addressed the arrangement via a June 11 Truth Social update, stating that he has “always been good” with including Chinese students in colleges and universities.
Dateline has a green light to explore and extract rare earths from Colosseum, as well as gold.
“We have seen growing interest out of the US, particularly after recent milestones at Colosseum,” the Sydney Morning Herald quotes Dateline Managing Director Stephen Baghdadi as saying.
Dateline said in May that it had started the process to uplist to the OTCQB. Should the OTCQB listing go through, the company will still continue to meet its ASX disclosure requirements.
The same month, the company said it had begun preparations for a rare earths-focused drill program at Colosseum, and would complete it alongside a planned gold feasibility study for the site.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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