Ahead of the Herd Newsletter – 2019 Issue Nine
Resource nationalism could further choke metal supplies
Tariffs are a blunt instrument in the toolbox of protectionist measures all countries have when negotiating trade agreements. There are other, more subtle ways of protecting local industries and keeping foreign companies out or at bay. In the mining business we call this resource nationalism. It has been a prevailing theme especially over the last few years as countries experience wider inequality, social unrest and often unsustainable levels of debt. Tapping a wealthy foreign mining company for more profits, or just expropriating the mine and kicking the company out, is often seen as the easiest way to fix a cash crunch, while at the same time appealing to nationalist sentiment.
This article will take a deep dive into resource nationalism and how recent examples of state-imposed strong-arming could exacerbate already tight supplies of gold, copper and zinc, and potentially impact rare earths and lithium.
Max Resource Corp (TSX-V:MXR) survey says?
Max continues to gather more data on the mineralization at its Chocó Precious Metals Project in Colombia – recently announcing that it has just completed a 1,000-square-kilometer Long Wave Infrared (LWIR) survey within its 1,757-square-kilometer property, located 100 kilometers from Medellin. Otherwise known as thermal imaging, LWIR is a brand-new mineral exploration technique that employs satellite imagery to uncover targets that were previously unavailable to exploration companies. LWIR bands can penetrate vegetation and other ground cover, to mathematically “fingerprint” mineralized areas. The aim of the LWIR survey was to see if there is a correlation between the conglomerate outcropping where Max is conducting a bulk sampling program and historical production, of which 1,000 square kilometers has been identified.
Max also announced it has hived off a portion of it’s Gachala copper project to Tasca Resources Ltd. (TSX-V:TAC) and appointed Dr. Chris Grainger to it’s Advisory Board.
Called for lithium tsunami cancelled
The world’s number one lithium producer, Albemarle, hit some stellar numbers in reporting its fourth-quarter results. Galaxy and Orocobre also did well. Albemarle is very bullish on lithium for the rest of 2019 – predicting that supply will not catch up with demand, leading to higher prices. Of course they would say that, but let’s take a hard look at what’s happening in the lithium market to see if it’s true. Has lithium turned a corner?
Richard (Rick) Mills – Special Correspondent to MiningIR.
Richard is host of Aheadoftheherd.com (AOTH) and invests in the junior resource sector. His articles have been published on over 400 websites, including:
WallStreetJournal, USAToday, NationalPost, MontrealGazette, VancouverSun, CBSnews, HuffingtonPost, MiningIR, Mineweb, CalgaryHerald, Forbes, Dallasnews, Indiatimes, ninemsn, World News, MSN.com and the Association of Mining Analysts.
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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
