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A Democratic Republic of Congo (DRC) Ministerial Order banning the export of copper and cobalt concentrates, which also introduces a new tax regime, is unlikely to have a material impact on either the global copper or cobalt market, but could add a near-term risk premium to copper prices while details of the policy are clarified, BMI, a Fitch Solutions company, posits.

On August 6, Reuters reported that the DRC has banned exports of copper and cobalt concentrates, citing a joint Ministerial order dated June 29, signed by Mines Minister Louis Kabamba Watum, Foreign Trade Minister Julien Paluku Kahongya and Economy Minister Daniel Mukoko Samba.

The order, which was later released publicly by the DRC Ministry of Mines, states that 'the export of copper and cobalt concentrates is prohibited' and takes effect immediately, although one-year waivers may be granted under 'strategic circumstances.'

The order also introduces a new tax regime for economically significant mining by-products, with a three-month transition period.

BMI explains that since the mid-2010s, the DRC has operated a de facto ban on exports of unbeneficiated copper and cobalt concentrates, with ad hoc exemptions granted to select mining companies where domestic processing capacity was insufficient or where said companies committed to investing in local processing.

"We therefore interpret the new policy as a shift to a de jure ban with tighter rules around waivers and exemptions on the export of concentrates," the company avers.

For copper, about 13% of the DRC's copper exports last year were contained in concentrates, with most of the rest exported as refined copper cathodes, BMI points out.

The former equates to about 400 000 t of copper metal, or about 1.7% of global copper mine production, it elaborates.

"While a loss of this magnitude has the potential to push the delicate copper market balance into deficit, we note that the DRC should have some spare capacity to smelt additional copper concentrates domestically, given the recent commissioning of the Kamoa-Kakula smelter, which has a nameplate capacity of 500 000 t/y," BMI predicts.

Currently, the Kamoa-Kakula mine is producing copper feedstock well below the smelter's nameplate capacity, owing to the residual impact of a seismic incident last year, which caused much of the underground mine to flood.

Therefore, there is a possibility for Kamoa-Kakula's owners, Ivanhoe Mines and Zijin Mining, to allow neighbouring copper mines to process concentrates at the Kamoa-Kakula smelter if those miners are unable to negotiate waivers with Kinshasa, provided spare capacity exists and third-party feed is technically and commercially viable, BMI hypothesises.

It notes that Ivanhoe themselves smelt a portion of their copper concentrate output at the nearby Lualaba copper smelter, which is 60% owned by Mainland China's CNMC.

"For this reason, we are not yet revising down our DRC copper mine production forecasts for this year or 2027, which we have already revised down this year following the aforementioned disruption at Kamoa-Kakula," the company reassures.

Meanwhile, it says that, for cobalt, the ban is "even less impactful than for copper".

According to trade data published by the Congolese authorities, almost all cobalt that leaves the DRC leaves as cobalt hydroxide, an intermediate product after concentrate but before battery-grade cobalt, the company explains.

The more important policy constraint remains the quota system introduced after the temporary cobalt export ban last year, it adds.

The DRC has set cobalt export quotas at 96 000 t for this year, including a 10% strategic allocation, equivalent to less than half the DRC's cobalt exports in 2024.

"As a result, the concentrate ban shou...

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US-based think tank Institute for Energy Economics and Financial Analysis (IEEFA) outlines in its latest report 'India's looming iron-ore challenge' how the country may not have enough access to the right quality of ore for its ambitious steelmaking expansion plans.

IEEFA says how India sources imported iron-ore and how much domestic ore it upgrades could shape the country's steelmaking technology choices, as well as influence India's dependence on imported coking coal and the pace of steel decarbonisation.

Under India's proposed National Steel Policy 2025, the government aims to more than double crude steel production capacity to 400-million tonnes by 2035/36 while cutting the sector's emissions intensity and reliance on coking coal.

India produced about 289-million tonnes of iron-ore in the 2024/25 financial year, making it the world's fourth-largest producer, however, about 66.5% of India's remaining resources are medium- and low-grade ore that requires beneficiation.

Expanding the country's 27 beneficiation plants' capacity from 136-million tonnes a year to 170-million tonnes a year by 2030 will require about $5.7-billion of investment, alongside supportive policy such as reduced royalties for beneficiated low-grade ore.

Many Indian ores also carry high alumina levels. IEEFA says every 1% rise in alumina lifts coke consumption by 2.2% and cuts blast furnace productivity by 4%.

"India's iron-ore challenge is shifting from securing sufficient supply to securing the right quality of ore needed for an expanding and lower-emissions steel industry. As iron-ore imports become more important for the country, the type of ore it sources could influence technology choices and thereby the pace of steel decarbonisation and long-term dependence on imported coking coal," IEEFA report author Saumya Nautiyal elaborates.

With global suppliers increasingly producing premium direct reduction-grade feedstocks and green iron, India should evaluate future iron-ore sourcing through the lens of technology, energy security and industrial competitiveness, and not simply cost.

IEEFA stresses that upgrading domestic ore should be at the centre of India's strategy, but with more than 357-million tonnes of steelmaking capacity under development, imports of premium ore will also grow. Nautiyal says the grades that India chooses to import will shape steelmaking technologies it locks in and how exposed the sector stays to coking coal.

He points out how the higher grade iron-ore shift is already reshaping corporate strategy. On Tata Steel's fourth-quarter earnings call, CE T.V. Narendran set out a post-2030 raw material approach built on securing domestic mining leases, expanding production where ore is available, and evaluating imported ore to complement domestic supply. Tata Steel has already trialed imported Canadian iron-ore, with Narendran noting that lower-alumina ores can deliver better value in use, particularly for its expanding coastal plants.

Globally, demand growth is moving from a maturing China towards emerging producers, including Southeast Asia and India. Iron-ore giant Vale has identified India as a strategic growth market and the Australian government forecasts India's iron-ore imports rising from three-million tonnes in 2025 to 50-million tonnes by 2031.

The head of raw materials at Jindal Steel estimates that producing around 220-million tonnes of steel by 2030 would require roughly 500-million tonnes of iron-ore, leaving a potential 40-million tonne gap even after planned mine expansions.

Beyond Australia, Brazil is well positioned to benefit from India's shift towards lower-emissions steelmaking, given its abundant high-grade iron ore resources and growing production of direct reduction-grade feedstock...

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Johannesburg- and Australia-listed Southern Palladium's share price on the JSE jumped by nearly 28% on August 11 after the company confirmed that South Africa's Department of Mineral and Petroleum Resources (DMPR) had granted the mining right for the company's flagship Bengwneyama platinum group metals (PGMs) project, in Limpopo.

The granting of the mining right marks the completion of a comprehensive regulatory engagement process between Southern Palladium and the DMPR following the lodgement and acceptance of the mining right application in October 2023.

"Securing the Bengwenyama mining right is a pivotal catalyst for driving the Bengwenyama project from studies to execution. With the mining right in hand, we can continue to progress the definitive feasibility study's (DFS's) completion, fast-track the project execution plan and operational readiness activities, to mobilise contractors for decline and boxcut works and start early works at the project.

"The significant improvement in our metallurgical results recently announced, including the step-change in chromite recoveries and the inclusion of a dense media separation component in the plant, combined with our mine design optimisations, means the team can confidently convert technical outcomes into constructible workstreams and turnkey schedules. The mining right materially de-risks the pathway to early development," says Southern Palladium MD Johan Odendaal.

Southern Palladium chairperson Roger Baxter adds that the granting of the mining right is the result of constructive and sustained engagement with the DMPR leadership and regulators and the Bengwenyama community and demonstrates the strength of government support and the company social licence to operate.

"The project's location in the Bushveld Complex, the premier PGM jurisdiction globally, gives the Bengwenyama project compelling geological, processing, smelting, refining and infrastructure advantages. With global demand for PGMs remaining firm, driven by multiple, large-scale industrial sectors and emerging technologies such as hard drive storage devices that use PGMs, and ongoing supportive fundamentals, the project is exceptionally well-positioned to deliver strategic, long-term value for stakeholders while continuing to prioritise responsible development and meaningful benefits for our partners, the Bengwenyama community as well as the broader region," he says.

The company notes that its board has approved the start of early boxcut and decline development before the end of this year, subject to the completion of the relevant waste management and water-use permitting processes.

Further, it says the DFS works programme is expected to be delivered in the first quarter of 2027, which is a one-quarter extension to ensure the significant value arising from recent excellent metallurgical test results is fully incorporated into the DFS plant design and optimisation work.

Southern Palladium notes that, at full steady state Stage 2 production, the project will produce more than 400 000 oz/y of PGMs and one-million tons of high-grade chrome concentrate a year.

The company points out that experienced project director Michiel Breed and underground PGM mine manager France Modau are leading preparations for the project's execution.

Southern Palladium share price on the JSE rose by 27.8% to R23.01 a share on August 11, compared with the close of R18 a share on August 7.

Corporate advisory firm Bridge Street Capital Partners has welcomed the news, stating in a report that the granting of the Bengwenyama mining right allows Southern Palladium to advance discussions with South African PGM smelters and refiners and chromite traders.

"This may enable product pre-pays/streaming/royalty deals to be pu...

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Barrick Mining reported a rise in second-quarter profit, buoyed by higher bullion prices, and struck a $1.95-billion deal with Newmont Corporation to settle disputes over Nevada Gold Mines.

Newmont consented to Barrick's planned initial public offering (IPO) of its North American gold assets, the companies said, clearing the path for an IPO that Barrick expects to complete by the end of this year.

Barrick is looking for a new CEO to lead its businesses outside of North America. CEO Mark Hill, who is set to head the company's North American entity, said he would prefer an internal candidate.

The Canadian gold miner met analysts' profit estimate of 82 cents, according to data compiled by LSEG.

It earned $1.22-billion, or 73 cents per share, for the three months ended June 30, compared with $811-million, or 47 cents per share, a year earlier.

Barrick shares were trading down 8% on the Toronto Stock Exchange at 1:00 p.m. ET (18:00 GMT).

Higher fuel costs are adding to pressure on gold miners as the U.S.-Israeli conflict with Iran disrupts oil flows and keeps energy prices elevated.

Barrick said fuel expenses, lower grades and higher royalties contributed to an 11% rise in gold all-in sustaining costs.

Its second-quarter realized gold price rose 34% from a year earlier to $4 417/oz, while gold output was flat at 796 000 oz.

Barrick said lower grades processed at its Carlin and Cortez gold mines in Nevada and North Mara mine in Tanzania, along with higher fuel costs and royalties associated with the stronger realized gold price, drove the increase in gold costs.

Its gold cost of sales rose 20% in the second quarter to $1 993/oz, while gold's all-in sustaining cost, a key industry measure of the total cost of producing gold, including sustaining capital spending, rose 11% to $1 866/oz.

NEWMONT DEAL CLEARS IPO PATH

Barrick owns 61.5% and Newmont 38.5% in the Nevada Gold Mines joint venture. Earlier this year, Reuters reported that Barrick will need Newmont's approval to move ahead with its proposed North American spin-off, because Newmont has the first right of refusal if Barrick tries to sell its stake.

Newmont also had disputes with Barrick regarding the operational issues at Nevada Gold Mines.

Under the agreement announced on Monday, Barrick will transfer its Fourmile project to the Nevada Gold Mines joint venture, while Newmont will transfer its Mike and Fiberline projects and pay Barrick $1.95-billion in cash within 30 days.

The agreement will create a nearly 100-million-ounce gold complex in Nevada, Barrick said.

Barrick's planned North American IPO will include its interests in and operatorship of Nevada Gold Mines and Pueblo Viejo, the Fourmile project and other North American exploration properties, along with the assets contributed by Newmont.

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Gold mining company Aurous Resources, which has been ticking away quietly off the radar with its revived Blyvooruitzicht and Doornfontein gold mines, is looking to adding 1 000 more employment opportunities in the near term.

Both the Blyvooruitzicht mine, which was established in 1937, and the Doornfontein mine, established in 1947, are located 70 km to 80 km west of Johannesburg, near Carletonville.

Aurous, founded by CEO Richard Floyd, is looking to grow its current production of around 25 000 oz of gold a year, which is achieved with a workforce of close to 2 000 people.

"We're just shy of 2 000 at this point, with near-term plans to add an additional 1 000. Ultimately, that will go up a further 1 000, so a doubling over the next five years, and largely from the local community, over 90%.

"So, really proud of that, and it has been, over the last decade, a real loyal, committed, driven, skilled, and safe workforce, and we really have a great chemistry and a great synergy," an upbeat Floyd said of his employees, who have seen to the delivery of well over two tons of gold to South Africa's Rand Refinery.

Following the initial reestablishment phase, growth plans have been coming to fruition amid Aurous' focus on unlocking long-term value. (Also watch attached Creamer Media video.)

Mining Weekly: What did you see about these assets that perhaps others did not see?

Floyd: It's fundamentally about counter cyclical investing. Gold price was weak in that era. South Africa was in a different space politically and economically, and both of those have had a more recent turnaround. Ultimately, we saw incredible, massive sunk costs in the investment of the underground. Access to the orebodies over 40 000 meters of underground development worth billions, which massively reduced the forward-looking cost to roll out the ramp-up production that we currently are undertaking, and ultimately having the conviction and the long-term mindset in the commodity, as well as the jurisdiction, despite the naysayers.

You've often said that turning around an historic underground mine is a marathon rather than a sprint. Looking back, what have been the biggest milestones in getting Blyvooruitzicht and Doornfontein to where they are today?

It requires persistence and patience, but the transition from legacy inefficient operations to a stabilised, modern, and safer model of execution took great grit. We invested intensely in leveraging the existing massive infrastructure, which has saved us great time and money in delivering on our growth plans, and it's been a long-term march towards sustainable production, profitable production.

You've spoken before about disciplined execution. What does that mean in practice?

We're all about walking the walk and not talking the talk. To us, discipline is the application of experienced operational leadership to an existing wealth of data, trusting in the data and not arm's length scepticism, focusing on concrete outcomes, returning these legacy operations to profitability through steady, continuous improvement and rigorous cost control, of course, helped by recent commodity price tailwinds. We've put a strong emphasis on building a sustainable business by focusing on operational realities, sometimes hard realities, rather than chasing market headlights. So we've been ticking away quietly off the radar, and largely our plans have been coming to fruition, and we're very proud to say so.

If I went out to the mines now, what would I see?

You would see a committed, loyal workforce, a team mentality, very clear understanding of collectively working and fighting for a prosperous future. You would see a hyper focus on safety. You would see a strong resolve to grow the business and enjoy the econom...