May 17, 2020

Gina Rinehart Makes a $3.2 Million Bet on Gold

mine sites
Gina Rinehart
Hancock Prospecting
2 min
Australian mining tycoon Gina Rinehart is looking for her pot of gold at the end of the rainbow.
Australian mining tycoon Gina Rinehart is looking for her pot of gold at the end of the rainbow.The queen of iron ore has agreed to invest $3.22 million...

Australian mining tycoon Gina Rinehart is looking for her pot of gold at the end of the rainbow.

The queen of iron ore has agreed to invest $3.22 million into the Four Eagles Gold Project, a joint venture between Catalyst Metals and Providence Gold and Minerals. The agreement will see Gold Exploration Victoria, a subsidiary company of Rinehart’s Hancock Prospecting, spend $1.6 million for a 25 percent stake in the project, which will then be repeated to reach a 50 percent interest in the asset.

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Through a spokesman, Mrs Rinehart said she was “committed to investing in Australia and the mining industry at a time that many others are winding back and or going overseas.”

Located 70 kilometers north of Bendigo in central Victoria, the Four Eagles Gold Project was discovered in 2010 by Providence Gold and Minerals. Going forward, Catalyst will continue to manage and maintain its equity in the project, while Providence would receive a 2.5 percent royalty entitlement.

“This is an important milestone for the company and provides the opportunity for extensive drilling on the large Four Eagles gold footprint in the next two years without any change in Catalyst’s project equity or dilution to Catalyst shareholders,” the firm’s technical director, Bruce Kay, said in a statement.

"Catalyst will be managing the program, Providence will still be very much involved and we will still continue to develop good relationships with local landowners and grain farmers.”

The site has historically been a hot spot for gold. During the 1800s, miners extracted roughly 22 million ounces of gold.

"I think they hopefully see the big potential of the area. Bendigo was historically the second richest gold field in Australia, chances are that you’re going to find gold there," added Kay. \

Read the full press release here.

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Jul 20, 2021

British Lithium Pressured Due To Calls for Electric Cars

3 min
The ever-increasing need for electric vehicles is mounting pressure on British Lithium as the 2035 deadline inches closer

The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change. 

It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.

British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad. 

Competition For Lithium Rises In Europe 

After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company. 

“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”

Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector. 

Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial. 

Cornish Mining Revival For Lithium Production

“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”

The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction. 

Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably. 

“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.

“Europe from a strategic point of view should be looking at securing its own supply of lithium.”

Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK. 

“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”

Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.

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