SOLAR INSIGHTS / Solar Insights | STORIESSearchMine Power: Global Marketplace Needed for Critical MineralsGLOBAL MARKETPLACE NEEDED FOR CRITICAL MINERALSDemand for minerals required for the energy transition—so-called critical minerals—is increasing rapidly. However, current market mechanisms are immature and opaque, leading to significant market complexities and price uncertainty. A new report from Perth-based mining research firm State of Play discusses this issue.The report, titled “Critical Minerals: Developing Price Transparency,” emphasizes the importance of establishing a global marketplace for critical minerals. It highlights that a lack of price transparency is a major barrier to investment. The industry is characterized by small trading volumes, lack of product standardization, and complex price discovery mechanisms, which increase investment risks.While demand-side pressures are well understood, the report focuses on supply-side complexities that challenge meeting future demand. Each transition mineral varies geologically and chemically, serving different purposes and end users. “Critical minerals are not made equal,” the authors note.Immature MarketsMany critical minerals are relatively new markets, unlike long-established industries like iron ore and coal. They are not traded in large volumes, have low liquidity, and experience high volatility, contributing to market complexities and price uncertainty.Currently, most trade occurs via long-term offtake contracts, with only a small proportion traded through other means. Increased production could change this, but investment remains cautious due to demand uncertainties.The authors suggest that a global marketplace could address these issues by providing visibility of prices and supply, seamless access to buyers and sellers, and efficiencies in negotiations. It could also serve as a foundation for futures markets, offering risk management tools and attracting more participants.Establishing such a marketplace involves challenges: achieving critical mass, ensuring global reach, publishing benchmark prices, balancing interests, maintaining confidentiality, and providing sufficient information for decision-making.The report concludes that a global marketplace is essential to accelerate mineral delivery, encourage investment, and support climate change efforts. It requires stakeholder collaboration and openness to new technologies. Ultimately, it could be key to achieving price transparency and financing future critical mineral projects.A ROUND-THE-CLOCK CLEAN ALTERNATIVE TO FOSSIL FUELSRenewable energy is challenging for remote, off-grid mines due to intermittent PV or wind and costly batteries. Many mines also need high-grade heat for processing. 247Solar offers renewable technologies that:Integrate with PV or wind for 24/7 dispatchable powerProvide industrial-grade heat up to 970°C (1800°F)Offer backup by burning local fuels, reducing gensets and fuel costs by up to 80%RIO TINTO CHAIR SAYS MINERS MUST INVEST MORERio Tinto Chairman Dominic Barton stated at the Singapore Ecosperity conference that global mining investment is too low to support the energy transition. Low investment levels threaten the progress toward decarbonization.He highlighted that the amount of metals needed per kilowatt has increased by 50% since 2010, and electric vehicles require six times more minerals than conventional cars. The industry faces a shortage of both minerals and capital to develop new mines, which take longer to build now.Barton emphasized the need for the industry to build trust and improve public perception, positioning itself as part of the solution to climate change, not part of the problem. An article by Mining Technology notes that reducing scope 3 emissions—end-user emissions—is crucial for climate mitigation, but companies often see it as someone else's problem.The International Council of Metals and Minerals (ICMM) has issued guidance to help companies set targets for scope 3 emissions, aiming for standardization and clearer goals.To Discover Our 24/7/365 Energy SolutionsSign up for the 247Solar Newsletter to learn more about our energy solutions.
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