Stockpiling
By Tshepo Magagane
US 12bn stockpiles – I believe in these 2 statements when it comes to the US – and remember stockpiles are just that, they do not replace yearly production!
1. It can displace China – just given the depth and variety of capital BY INCREASING THE STANDARDS OF OPERATIONS
2. It needs to understand that Mine Finance, is an incredibly unique part of High-Finance (even High Finance guys avoid the sector from their grad year) – you need to have seen these things from so many angles
What you see is that there is a lot of Mining 101 papers which inform strategy ie conferences (fiendish stuff as it gives the impression that something is being done) – and you are seeing in how this they are already deploying this 12bn – they dont even grasp the “a mine is a hole in a ground and a liar on top” – you cant understand that let alone appreciate and live by it unless you have done this!
It can “get in the game” against China but it needs a 180 degree turn but more importantly “humility” and good intentions towards the resource endowed countries!
Copper – there are not new MRE projects – you are not going to pick up the right tenements sitting in New York / London / Paris or even ZUG
Rare Earths – no one wants to talk about why China ended up having 90% of processing – it is a dirty dirty process separation – can it ever be done in the West????
There is a lot of nuance that goes into this…big public announcements unfortunately wont help you understand it – “boots-on-the-ground” ie geology, asset, history, parties, politics, fatal flaws!
PS: China’s biggest strength is it LT myopic focus; followed by putting the “technical experts” in place – why you see them turning the screws on Australia in the Iron Ore space (20yr battle); why they are doing 0.3% copper grades in Mongolia; why Copper in Angola; why 15 of 17 Copper projects in DRC (even Kamoa); why HPAL in Indonesia…
…what you are dealing with – you cant stand a chance without a proper, well resources, well thought out, expert-led strategy!
