In an interview with Mining Journal, White & Case partner Rebecca Campbell, who leads the Firm’s Global Mining & Metals Industry Group, comments on a different theme in mining & metals M&A that has already emerged and will continue with gusto – the exposure to future-facing minerals related to the energy transition.
The majors have always been involved with some of those minerals, such as copper and nickel. But not lithium, graphite, vanadium and a host of others that have appeared on EU and US lists of critical minerals. Two things are happening currently: a growing number of discussions are taking place about forging partnerships, offtake deals or joint ventures, not only between miners, but also between miners and downstream players such as technology firms that are trailblazing a route to more sustainable mining production and refining processes. Supply deals between miners and auto firms have been going on for several years.
Campbell said: "It's not just car companies linking with miners in order to secure primary supply, but increasingly any downstream player who's exposed to raw material risk. If you are building a battery factory, or if you are a wind turbine producer that needs rare earths, you need to be comfortable that future supply is secure. It's not so much about pricing-risk but availability-risk. We are starting to see people think outside the box."
Read the full article here (paywall).
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