Mining Mirror August 2018 | Page 21

Mining in focus T he debate around battery metals and the raw minerals required for such metals has become a hot topic in the mining industry. This topic was up for a panel discussion at the 2018 Junior Indaba. Junior Indaba is an annual conference predominantly aimed at small mining companies. During the two-day conference, stakeholders in the mining industry, such as CEOs, entrepreneurs, investors, and mining professionals, gather to discuss issues and challenges facing junior miners. The panel discussion titled “Battery metals: the flavour of the month”, discussed what effect battery metals had on the mining industry, and what implications this would have for junior miners. Lithium, cobalt, lead, and vanadium were discussed by panellists from different aspects in the junior mining space. Demand for battery metals Panellists at the Junior Indaba discussing battery metals. The arrival of battery electric vehicles (BEVs) on the market has seen a knock-on effect on the demand for battery metals used in the production of batteries for such vehicles, writes Dineo Phoshoko. According to Aleksander Popovic, a senior consultant from CRU Group, lithium, cobalt, vanadium, and lead acid batteries tell a bullish story in the markets. “Ultimately, the market for batteries is going to be much bigger than it is today, there is no question about that. There are going to be different types of batteries catering to different types of needs,” Popovic commented. All technologies dealing with batteries are expected to get some share in the market. Ratings agency Moody’s echoed Popovic’s views, predicting a surge in the demand for batteries to produce BEVs, predominantly by the automotive industry. The forecasted demand in batteries implies that there would be an increase in the demand for the raw materials, including minerals, used to make the batteries. Montero CEO and president, Tony Harwood, explained that lithium was used in small batteries and cars, whereas vanadium was used for bigger storage capacity. Both would be in demand going forward, not forgetting copper and nickel, which are included in the battery metals space. “Everything we looked at in the vanadium space pointed to a market that was getting into a sustainable structural deficit,” said Fortune Mojapelo, CEO of Bushveld Minerals. When Bushveld decided to pursue the Vametco vanadium mine and plant in 2016, vanadium commodity prices were very low. However, Bushveld was encouraged by the demand and the supply picture indicated a present deficit in the market — implying a solid demand that is growing. “From that point of view, we were confident that we would see a turn,” Mojapelo added. Timing and mineral choice “Timing is absolutely imperative. You have to have the right team, the right deposit, the right AUGUST 2018 MINING MIRROR [19]