Thursday, October 23, 2025

The Northern Miner Treasure Hunt: Cobalt – the silver rush that transformed the Ontario bush

Bags of silver ore awaiting shipment at the Cobalt camp’s LaRose property, July 15, 1905. Credit: The Northern Miner

🎥 Watch the video: [English] | [French]

Standing atop Nipissing Hill Lookout, the history of the surrounding town of Cobalt, Ont. is in full view. There’s the town itself, Cobalt Lake and the decades-old remains of legacy mine infrastructure such as headframes and wooden mills. Look further out and squint, and on a sunny day a set of distant squares of solar panels reflect back bright white light. 

The tranquil streets and dusty old mining buildings of Cobalt might make it hard to believe that this community – where less than 1,000 people live – once hosted one of the three great silver rushes of the Americas.

In 1545, a group of Spanish conquistadors in what is now Bolivia founded the silver mining town of Potosi, located more than 4,000 metres high in the Andes mountains. Within 30 years, Potosi became one of the most important sources of silver in the world, producing billions of ounces for the Spanish Empire. But the vast wealth from Potosi was built on the backs of millions of Indigenous and African slaves, many of whom died mining silver in grim conditions.

Fast forward to roughly 1859 in western Nevada, where a group of gold prospectors had set up their canvas tents on the rocky and sagebrush-dotted slope of Mount Davidson. Though they found some gold, they found more silver, and within a few years thousands of people converged on the area in what became the Comstock Rush. Over the next three decades, almost 200 million oz. of silver would be mined, and the initial settlement grew into Virginia City, with a population of 25,000. It also became a city of stark contrasts where a few “Silver Kings” could flaunt their newfound wealth while hundreds of others toiled and died in underground mine accidents, or perished from disease and violence.

Fast forward again to the year 1903, much further north of Nevada to the dense boreal forests of northern Ontario and a small, clear lake with rocky shores. Almost 500 km north of Toronto – then a city of only 210,000 people – there was barely any modern infrastructure in the area. The exception was the Temiskaming & Northern Ontario Railway (TNO), whose work crews were slowly extending the line northwards from North Bay to Haileybury and New Liskeard in a bid to access a clay belt for farming. 

Cobalt’s approaching silver rush came at a far lower human cost than other rushes in the Americas, and like other booms, it birthed a new town that rapidly grew from a mining camp in the bush and later slowly faded. But it was no less significant for its contribution to Canada’s mining heritage, a contribution likely to live on as Canada enters the green energy transition.

Pink stains on rocks

One August day in 1903, some two members of a crew looking for lumber for the rail ties near – Long Lake James McKinley and Ernest Darragh – saw pink stains on a rock.

They chipped off some samples and used the tried-and-true trick they had learned from prospecting in California: they bit the shiny metal on the rock chips and found some of it was soft, native silver. Later, they sent the samples to an assay laboratory at McGill University in Montreal. The results showed 4,000 oz. silver per ton.

That same summer, Willett Green Miller, Ontario’s first historic provincial geologist visited the area to investigate the stories about metal discoveries. Thinking that “Long Lake” was too generic a name for the camp, he also knew that the metal cobalt – used at the time as blue pigment in paint – co-occurred in the local silver veins. He made a rough sign with the name “Cobalt” for the local TNO stop, and the name stuck. 

McKinley and Darragh followed up on their samples by entering a mineral claim with the Bureau of Mines in Toronto. The next spring they returned to the area and headed back into the bush with the mining gear of the day: wheelbarrow, picks, shovels, and an axe, and began trenching for silver veins.

From stir to rush

The pair found even more incredibly high-grade silver and began their McKinley-Darragh mine. By 1906, American interests had bought the mine, and they returned to farming in eastern Ontario.

In 1907 the mine expanded into a mill – Cobalt’s first – as output grew from 15 tons per day to 225 by 1913. It helped that much of the silver deposits were close to the surface.

The Cobalt silver rush was on, and the town changed very quickly, truly transforming.

Until it ceased operations in 1927, the mill produced more than 13 million troy ounces of silver.

As Cobalt’s first mill expanded, the number of mines also grew rapidly, vastly increasing operations around the camp. There was LaRose, Trethewey, Buffalo, Coniagas, Drummond, Nipissing, and many others.

The amount of ore milled in gravity concentrators – large wooden tables that shook ore-containing mixture – soared 12-fold from 1908 to 591,400 tons by 1914.

Seekers and winners

As the silver ounces were pumped out, the money flowed in.  In return, a huge influx of capital was deployed to Northern Ontario.

By 1906, investors were buying mineral properties in Cobalt without having seen them and before they knew financial propositions.

Also that year, the mining-rich Guggenheim family from the U.S. sent mineral expert John Hays Hammond to survey a property in the Cobalt camp. He reportedly arrived in a private Pullman car with a valet, a chef and a wine steward and decided the asset was worthy. The Guggenheims then invested US$2.5 million (worth about US$90 million today) in the company that controlled the property.

That triggered a stock run in New York City. Police had to intervene to control crowds of feverish investors trying to buy Cobalt shares from curbside vendors. When the Guggenheims learned the ore wasn’t minable, they withdrew from the deal and chaos resulted on Wall Street. Some $24 million in stocks was allegedly lost almost overnight. 

April 1909, Cobalt’s Daily Nugget newspaper claimed that the town had produced 38 millionaires, including the mine investor brothers Henry and Noah Timmins, whom the northern city was named after.

Rushing in, building up

Cobalt grew, with the population reaching 10,000 in 1909 – and even 12,000 by some accounts – swelled by silver hunters from an impressively far reach including Russia, China, Greece and Finland. 

The first streetcar system in Ontario was built in Cobalt, the first Northern Ontario hockey team was formed there, aptly named the regal title of the Silver Kings, and the Bijoux vaudeville and movie theatre was built on Lang Street, the main commercial road.

In 1910, the three-storey Royal Exchange Building was constructed. It housed the Canadian Explosives Office, the General Electric Office, Ontario Surveyor’s Office, Stock Exchange, the Bank of Toronto, and a bar. It also hosted The Northern Miner newspaper, which began covering mining stories from the building in 1915.

Not all roses

The boom also brought burdens.

A horrible explosion in 1906 on Lang Street destroyed several homes and poor sanitary conditions caused a deadly typhoid epidemic in 1909.

The safety ethos of underground mining during the rush was characteristic of the time. Candles used for illumination sometimes started gas explosions and by the end of 1912 more than 100 men had died underground.

Careless dumping of sulfide-rich mine tailings during an era when the environment wasn’t a major concern has today left lakes around Cobalt with arsenic readings exceeding healthy levels. Lake sediments have also become contaminated with overly high amounts of arsenic.

The boom fades

In 1911, the peak intensity of the Cobalt rush, 34 mines produced around 30 million oz. of silver. That year also saw the population start to decline and by the 1920s the rush was slowing down. The silver veins petered out about 100 metres below the surface. The rush faded even faster with the 1929 stock market and silver price crash.

In total, the Cobalt rush generated 460 million ounces of silver.

Cobalt’s population kept declining throughout the notorious 1930s and 1940s, when just over 2,000 people lived in the town.

Some would end Cobalt’s story there, concluding when it had a good few decades but then the mining world moved on somewhere else to the next round of development.

But Cobalt’s significance goes much deeper than that, influencing mining communities across the region.

Cobalt’s innovation spur

The rush accelerated technology development and professionalization in the local industry.

The first several years of the rush can be roughly labeled as a split between 19th and 20th century mining methods. Just as McKinley and Darragh headed into the bush using wheelbarrows, picks and shovels, so did the first wave of prospectors and miners, many of whom came from the western U.S.

A second wave took shape by 1909 improving use of technology, brought more engineers, geologists, and trained crews.

One example is the “Ragged Chutes” compressed air system, devised by mining engineer Charles Havelock Taylor. It was named after roaring rapids on the Montreal River, south of Cobalt.

Around 1905, while walking along the Ottawa River near Montreal in the winter, young Taylor observed air bubbles forming under ice and how, when a mixture of air and water is compressed, the air rises and escapes. 

Applying all those principles to mining, he built a system where a large amount of water fell down a deep shaft, picking up speed as it fell. When the water rushed to the bottom it created a lot of bubbles, which were diverted to a special underground chamber. At that depth, the pressure compressed the bubbles and the air was sent through pipes while the water could escape. 

In 1910, the Ragged Chutes compressed air plant – the first of its kind – was built upon the Montreal River to power drills, hoists and ventilation shafts, without the use of coal or electricity. 

It was one of the first hydraulic compressed air systems at mines in North America and revered for decades in Cobalt. While other mines didn’t necessarily replicate Ragged Chutes because they instead relied on electricity or steam, they did follow its concept of an efficient, centralized air and power system.

Education, training, Agnico

The rush also spurred the establishment of the Haileybury School of Mines (HSM). The demand was continually growing for mining expertise so the school was founded in 1912. Its first graduates were quickly hired by the growing number of mines in Cobalt. HSM is today part of Northern College.

As well, Cobalt was a training ground for aspiring miners who moved to other camps across the Abitibi: ultimately, Porcupine, Larder Lake and Kirkland Lake became major gold producers thanks to the talent born from the silver rush in Cobalt.

After the rush, some silver and cobalt was mined in the town well into the 20th century. It had intermittent population growth in the 1950s when the Cobalt Lode Mine extracted the namesake metal for the U.S. government. That site was owned by Agnico Mines which formed in 1957, the predecessor to what would later become Canada’s top gold producer Agnico Eagle Mines.

Cobalt’s green future?

Cobalt’s story is far from over. With silver playing a key role in solar panel technology and junior explorers actively discovering new sources of critical minerals, the town’s legacy is evolving into a bright, green future built on innovation and sustainability.

Electra Battery Materials’ cobalt refinery, located just 5 km from the town in Temiskaming Shores, could become North America’s first facility enabling large-scale processing of this critical mineral, essential for electric vehicle batteries and aerospace applications.

While the facility would mostly process cobalt sourced from the Democratic Republic of Congo, modern exploration may lead to these critical minerals surfacing right where this all began, with a set of shiny discoveries in the bush 122 years ago.

Western retail demand for gold surges in rush for hard assets

The Cartier boutique in London. Stock image.

In London’s historic Hatton Garden, where diamonds have long been the star, gold is commanding more attention. The famed jewellery district is abuzz with customers seeking bullion bars and coins, broadening the investor pool for tangible assets.

“There’s a mix of buying and selling gold, but buying is definitely stronger. Even though prices are high, people are still buying. Many believe prices will go even higher,” said Mashhood, a staff member at a local shop.

Spot gold hit a record high of $4,381 per ounce on Monday. Even though a steep selloff on Tuesday and Wednesday took it down 7% to around $4,076 per ounce, retail interest remains strong.

For Britain’s Royal Mint, the surge in investor appetite has translated into record-breaking activity. The Mint recorded its strongest single day of e-commerce trading this month, reflecting heightened demand for physical precious metals.

“The surge in demand has also led to exceptional individual transactions. We’re seeing roughly 60% existing customers and 40% new customers, with existing investors notably increasing their average order values and doubling down on their positions,” said Stuart O’Reilly, market insights manager at The Royal Mint.

Tax strategy

Customers are also exploring tax-efficient strategies. “I’m converting my gold bar into coins to avoid Capital Gains Tax (CGT). I’ll sell a portion but hold on to two-thirds, as I keep hearing everywhere that prices could rise further,” said Cherry Jephson, a customer at Hatton Garden.

In the UK, CGT applies to profits made from selling gold bars, which are treated as taxable assets. However, certain British gold coins, such as Sovereigns and Britannias, are classified as legal tender and are fully exempt from CGT.

Other regions

Traders and banks in Germany and Austria are also reporting exceptionally strong retail demand for physical gold.

“I saw long queues of customers both at the Viennese Shop of Ögussa as well as the Austrian Mint shop in the city centre. Traders in Germany report the same picture in front of their shops,” said Wolfgang Wrzesniok-Rossbach, founder of precious metals consultancy Fragold GmbH.

Gold’s retail investor appeal has grown sharply this year, driven by global economic uncertainty and rising geopolitical tension highlighting its safe-haven cachet. Prices have doubled over the past two years and are up 55% so far this year.

The Perth Mint, one of the world’s leading producers of newly mined gold, is witnessing a similar surge.

Visitors to our “East Perth premises have increased from an average of 5,000 a week to about 8,750 over the past four weeks. This has prompted us to recruit an additional eight staff to assist across our retail and customer operations teams”, said Tina Kircher, general manager of retail.

World Gold Council data showed investment demand for gold bars rose 10% in 2024, while coin buying fell 32%.

With investors seeking security and liquidity, physical gold could remain a key part of retail portfolios in the months ahead.

“The world remains deeply unsettled, and gold is reflecting that,” said Adrian Ash, head of research at online marketplace BullionVault.

(By Ashitha Shivaprasad and Polina Devitt; Editing by Veronica Brown and Arun Koyyur)


M23 rebels reject accusations of gold theft from eastern Congo mine

M23 troops. Credit: Al Jazeera English, Wikimedia Commons, under licence CC BY-SA 2.0.

The M23 armed group on Thursday denied accusations that its fighters had looted at least 500 kilograms of bullion from Twangiza Mining’s gold concession in eastern Democratic Republic of Congo.

The firm operating in South Kivu province, much of which is under M23’s control, said this week that M23 had “secretly transported (the gold) through underground channels.”

It also accused the rebels of using Rwandan technicians to extract geological data to resume and expand mining.

Rwanda has consistently denied backing M23 rebels, despite repeated allegations from UN experts and Western and regional governments.

At a press conference on Thursday, Corneille Nangaa, leader of a rebel alliance that includes M23, said the mine was not in operation and that only artisanal miners were working there.

He said M23 did not have the necessary equipment to operate a mine.

Nangaa has also accused Congolese government forces of attacking the site including with aerial bombing. He said civilians had been killed in those attacks but did not provide a death toll.

A drone strike on October 15 destroyed power generation infrastructure at the mine, the company said. It is not clear who was responsible for the drone strike.

Congo’s government did not respond to a request for comment on the allegation.

M23 staged a lightning offensive this year that allowed them to seize more territory in eastern Congo than ever before. The group seized the mine in May.

Twangiza said it had lost over 100 kg of gold a month since the takeover, in addition to $5 million worth of equipment and materials.

The company is preparing to file a formal complaint with international arbitration and Congolese authorities, and has declared force majeure.

Armed groups have seized several mining sites in mineral-rich eastern Congo, according to UN investigators.

A UN Security Council briefing last year said M23 rebels were earning around $300,000 monthly from mineral taxes in the coltan-rich Rubaya region.

(Reporting by Congo newsroom; Writing by Anait Miridzhanian; Editing by Robbie Corey-Boulet and Daniel Wallis)

 

Copper price rises on mine struggles, Goldman bull flag

Stock image.

Copper climbed nearly 2% on Thursday as one of the world’s top miners gave a conservative production outlook, adding to the metal’s supply concerns in a year marred by global disruptions.

Prices surged as much as 1.7% to above $10,800 per tonne on the London Metal Exchange, while three-month contracts on the COMEX gained 1.9% to $5.10 per lb., equivalent to $11,250/t.

The metal used in wiring for renewable energy, electronics and construction has rallied more than 20% this year, supported by a series of major global mine outages and production setbacks. Prices have been on the rise since August following major incidents at Chile’s El Teniente, the world’s largest underground mine, and Grasberg in Indonesia within the span of a month.

In a further exacerbation of supply worries, Chile’s Antofagasta, one of the largest copper producers globally, said on Thursday that it expects to hit the low end of its 2025 production target and gave a production forecast for next year that missed analysts’ estimates.

The miner’s “operational update was mixed overall versus our expectations,” analysts at BMO Capital Markets said in an emailed note to Bloomberg. “Maiden 2026 copper production guidance may disappoint slightly.”

Goldman boost

In a further boost to copper prices, Goldman Sachs pointed to a near-term bullish view among traders.

The bank, citing industry players it spoke with during the recent LME Week conference in London, signalled that prices may test all-time highs again over the coming months, as some investors are planning to add to their positions once prices breach $10,900/t.

The view is backed by the huge arbitrage opportunity created by US import tariffs on copper, which drove prices in New York to an all-time high of $5.732 per lb. in July.

US futures on the COMEX exchange are still trading at a premium over London prices that are the global benchmark, and the metal is flowing to America, according to Bloomberg.

“In the near-term, we see the positive COMEX-LME arbitrage as having a material tightening impact on the physical ex-US market and posing temporary upside risk to our LME copper price forecast range of $10,000-$11,000,” Goldman analysts including Eoin Dinsmore wrote in a note.

Zinc squeeze

Meanwhile, zinc buyers are facing a historic squeeze on the LME as exchange inventories dwindle, but Goldman analysts said it expects shipments from China to replenish reserves.

“The global zinc market is currently balanced, but regional differences have emerged with China in surplus and the rest of world in deficit,” they wrote. “In the near term, clients we spoke with agreed with our view that the China export arb will open to rebalance the global market.”

(With files from Bloomberg)

Southern Copper’s $1.8B Tía María mine gets green light

Tía María faced an almost 20-year delay on community opposition. (Stock image by Christian.)

Southern Copper (NYSE, LON: SCCO) has secured a long-awaited licence for its $1.8-billion Tía María copper project in Peru, marking a major step forward after years of social unrest and political delays.

Peru’s Ministry of Energy and Mines (Minem) approved the mining licence last week, clearing the way for the project to enter the exploitation phase.

Located in the Islay province of the Arequipa region, the project is expected to reignite confidence in Peru’s mining sector and potentially unlock other stalled developments across the country.

Tía María faced years of delays due to local opposition over environmental concerns. Protests between 2011 and 2015 left six people dead and forced the project’s suspension.

Although the government approved the mine in 2019, it tied progress to the restoration of social stability. Southern Copper resumed development in 2024 after local tensions eased.

With the licence now in hand, the company can begin pre-mining work and pit stripping. The project is 25% complete, with most progress centred on auxiliary facilities and the treatment plant. The initial construction phase, covering access roads and platforms, was 90% finished as of July.

Tía María is expected to begin production by late 2026 or early 2027, delivering 120,000 tonnes of copper annually over a projected 20-year lifespan. The output would secure Peru’s position as the world’s third-largest copper producer.

$7 billion worth of projects

In 2024, Southern Copper Peru produced 414,000 tonnes of copper, ranking it as the country’s second-largest producer. But the broader mining landscape remains constrained. A recent study found that 31% of Peru’s untapped copper production capacity, equal to around 1.8 million tonnes per year, is effectively “off-market” due to environmental, social, or governance challenges.

The Peruvian Institute of Economics (IPE), an industry-backed think tank, estimates that about $7 billion worth of copper projects are stalled due to illegal mining invasions. Impacted developments include Southern Copper’s Michiquillay and Los Chancas projects, as well as First Quantum’s Haquira copper project. IPE also forecasts illegal gold exports could reach $12 billion in 2025.

 

Bolivia’s new president rekindles cautious hope for long-stalled lithium dreams

(Image of Bolivia’s Salar Uyuni: Flickr.)

Bolivia’s election of centrist Rodrigo Paz is raising cautious hopes that a more market-friendly leader could pave the way for international investment in the country’s ample lithium reserves after years of false starts under two decades of socialist rule.

Bolivia holds the world’s largest resources of the ultralight metal used in electric vehicle batteries, but development has been hamstrung by political opposition and a law mandating state control of the sector that has chilled broad investor interest.

Lithium deals under outgoing President Luis Arce with companies from allies China and Russia were blocked in Congress, and Paz has said he would scrutinize the contracts to ensure transparency, a move that could create fresh opportunities but also spark investor jitters.

To be sure, Paz’s campaign focused less on lithium than on other priorities such as maintaining cash transfers to the poor, decentralizing government and private sector-led growth, part of an effort to not alienate former supporters of leftist Evo Morales who founded the ruling MAS party.

In that vein, Paz has also vowed not to “sell out” the vast Uyuni salt flat famed for its dazzling fields of white salt, a nationally beloved symbol of Bolivia’s national sovereignty and Indigenous heritage.

Beyond calling for foreign investment that benefits the local Potosi region, he has not discussed a policy plan for Bolivia’s 23 million metric tons of lithium resources.

Diego von Vacano, a Bolivia expert at Texas A&M University, said Paz needs to announce details within the first few months of his presidency for the global mining community to take him seriously.

“Otherwise, investors will say, okay, it’s more of the same … and Bolivia might be seen again as having missed the boat,” he said.

Among other issues, Paz faces a decision on whether to modify a Bolivian law dictating that only the state can extract lithium, which has cramped investor interest both locally and abroad. Changing it would require constitutional referendum or reform. Paz and his advisors have yet to weigh in on the question.

There are technical challenges, too, in tailoring extraction technology to the exact composition of the salty brine deposits that hold Bolivia’s lithium. Past efforts with traditional evaporation ponds proved inefficient due in part to high naturally occurring concentrations of magnesium.

State-run lithium company YLB opened its first plant at the end of 2023 and last year brought in $15.6 million with production of 2,000 metric tons of the battery metal, a fraction of commercial scale.

Chile, the world’s second-largest producer, turned out nearly 300,000 tons of lithium last year while Argentina, which ranks fourth globally, produced 70,000 tons.

Although Bolivia missed the 2022 peak of lithium prices, it could theoretically ramp up some production in time to latch on to demand that is expected to grow in the coming years in line with EV sales.

Lithium companies will carefully watch Paz’s first moves once he takes office on November 8.

His Christian Democratic party does not hold a majority in the legislature, which will now be dominated almost entirely by centrist and right-wing groups after the loss of seats for the outgoing ruling party, MAS. That could help accelerate more investor-friendly rules if infighting does not prevail.

Seeking stability

Teague Egan, CEO of US lithium company Energy X, which lost a prior bid for a Bolivia project, welcomed Paz’s US-friendly stance, but said that scrapping the Russia and China deals could set a worrisome precedent for what could happen under the next president in five years.

“If he annuls those contracts, I would be very hesitant to re-enter Bolivia,” Egan said. The Bolivian salt flats are large enough to offer numerous areas for exploration, but projects could be constrained by the government’s limited capacity to award contracts and oversee production.

Russian state nuclear corporation Rosatom, which signed a lithium deal with Bolivia in 2023, defended its project in a statement to Reuters as beneficial to the economy and local communities.

“We view our cooperation with Bolivia as a long-term partnership that will bring tangible benefits,” Rosatom said. “We are ready to continue constructive cooperation and remain committed to the successful implementation of the project on mutually beneficial terms.”

Chinese battery maker CATL, which also inked a major Bolivia lithium agreement in 2023, did not reply to a request for comment.

Felipe de Mussy, South America president for US lithium technology firm Lilac, which lost a prior bid in Bolivia, said he would look at fresh opportunities if Paz ensured stable regulation and transparency.

“With clearer rules and openness to new technologies, Bolivia could unlock its vast lithium potential,” he said.

Bolivia could be a good fit for smaller companies aiming to prove their technology, as well as larger companies with the financing backing to absorb risk, said Chilean mining lawyer Pablo Hamilton, who is aiming to help connect foreign investors with energy and lithium opportunities in the new government.

He is hopeful that Paz’s centrist position could bring advantages, compared to conservative rival Jorge “Tuto” Quiroga.

“Although he’s less clear on what he wants to do, he’s in a better position to speak with people from both sides of the spectrum – the right and the left – in order to bring more stability for investors,” he said.

Analysts also see a potential opening for the US just as President Donald Trump is attempting to ramp up influence in critical minerals, including lithium, to counter China’s dominance.

US Secretary of State Marco Rubio congratulated Paz and said the Trump administration was interested in bilateral investment, without detailing in which sectors.

“After two decades of misguided administrations, the election of Rodrigo Paz marks a transformative opportunity for both nations,” he said in a statement.

(By Daina Beth Solomon, Daniel Ramos, Monica Machicao, Rodrigo Gutierrez, Lucinda Elliott, Anastasia Lyrchikova and Amy Lv; Editing by Christian Plumb and Marguerita Choy)

Lithium miner PLS says power storage offsetting US EV gloom


PLS CEO Dale Henderson at Pilgangoora site. Image credit: Kristie Batten

PLS Ltd., a pure-play lithium producer in Australia, said demand for the battery metal in power storage is helping to offset slower electric vehicle growth in the US.

The energy storage sector is growing by “leaps and bounds,” PLS chief executive officer Dale Henderson said in an interview on Bloomberg Television with Avril Hong and Annabelle Droulers. While “there has been a pullback” in EV demand in the US as a result of government policies, the global outlook for lithium is positive, he said.

Energy storage additions are on track to notch a record in every year to 2035, after a forecast jump of 23% in 2025, according to BloombergNEF. Lithium-iron-phosphate batteries will remain the dominant chemistry, and China and the US will continue to be the largest markets, BNEF said on Tuesday.

Meanwhile, demand for electric vehicles in the US is waning after President Donald Trump’s administration eliminated tax credits at the end of last month and effectively nullified fuel economy and emissions standards. General Motors Co. is incurring $1.6 billion in charges tied to its pullback from EVs, while Ford Motor Co. will buy less lithium and delay shipments from Australian producer Liontown Resources Ltd.

That comes as lithium prices lost almost 90% from a peak in 2022 because of global oversupply. They have swung wildly in the past few months amid mounting supply-side anxiety in China.

“The lithium market has been very volatile from inception,” Henderson said. That should even out over time, aided by the emergence of a more efficient spot trading mechanism and future exchanges options — which to date are “very nascent”.

“There’s actually limited opportunity to hedge, albeit more instruments are starting to emerge,” Henderson said.

PLS has a small component of spot sales to help with price discovery and sets aside a large proportion for medium and long-term offtake agreements, he said. PLS was previously known as Pilbara Minerals, but rebranded earlier this year.


(By Paul-Alain Hunt and Annie Lee)

Friedland-backed scandium miner enters supply deal with Lockheed Martin

A drill site at the Sunrise cobalt-nickel-scandium project in Australia, 350 km west of Sydney. Credit: Clean TeQ Holdings

Robert Friedland-backed Sunrise Energy Metals (ASX: SRL) could become a long-term supplier of scandium for Lockheed Martin under the recently signed Australia-US critical minerals pact, the company announced late on Thursday.

In a press release, the Melbourne-headquartered Sunrise said it has entered a partnership agreement with Lockheed Martin that grants the defense and aerospace manufacturer an option to buy up to a quarter of the annual scandium production from its Syerston project.

The mineral is vital for semiconductors that power mobile communications, aerospace and automotive applications. The US accounts for about 90% of overall demand, but rival China controls most of the supply, making the mineral easily exposed to supply chain disruptions.

The partnership would cover the first 15 tonnes per annum of scandium oxide produced at Syerston over an initial five-year term, Sunrise said in its press release, noting that this would represent about 25% of the project’s annual production capacity.

“We are pleased to be working with Lockheed Martin on this important initiative, one which underscores the importance of the US-Australia critical minerals pact, signed by President Trump and Prime Minister Albanese at the White House only a few days ago,” said Friedland, who serves as co-chair of the company.

“It is encouraging to see new applications emerging for scandium in both civilian and defense markets. While global scandium trade is still small, latent demand is potentially enormous, provided customers have clear line of sight to supply options that are diversified, low-cost and scalable,” added Sam Riggall, Sunrise’s managing director.

High-grade scandium deposit

The company hails its Syerston project, located about 450 km west of Sydney in New South Wales, as one of the world’s largest and highest-grade deposits of scandium. A resource update released last month showed it has nearly 46 million measured and indicated tonnes grading 414 parts per million scandium.

Following the resource disclosure, the Australian miner received a letter of interest from the Export-Import Bank of the United States for a debt financing of up to $67 million to support the project’s development.

“This letter of interest underscores the importance of scandium to the United States, both as a critical component in wireless communications technologies, and advanced alloys supporting the civilian and defence sectors,” Friedland stated in a September 16 news release.

Lockheed Martin Secures Option for 25% of Sunrise Scandium Output in Australia

Lockheed Martin Corporation (NYSE:LMT) has signed an agreement with Sunrise Energy Metals Limited (ASX:SRL, OTC:SREMF) to secure up to 25% of scandium oxide production from the Syerston Scandium Project in New South Wales, marking a key step in establishing an Australia-U.S. scandium supply chain for advanced manufacturing and defense applications.

The deal grants Lockheed an option to purchase 15 tonnes of scandium oxide annually—about 25% of the Syerston Project’s expected output—during its first five years of operation. The companies will collaborate on testing and qualification programs to accelerate scandium integration into Lockheed Martin’s product platforms.

The partnership follows the recently signed U.S.–Australia Critical Minerals Pact, underscoring growing efforts to secure Western supply chains for strategic materials used in aerospace, defense, and clean energy technologies. Scandium, valued for its ability to strengthen aluminum alloys while reducing weight, is increasingly sought after for applications in aircraft, spacecraft, and next-generation energy systems.

Sunrise Energy Metals, co-chaired by mining financier Robert Friedland, is developing what it describes as the world’s first high-grade, scalable scandium source at its Syerston project. In addition to scandium, Sunrise holds one of the largest nickel-cobalt laterite deposits globally—resources critical for EV batteries and energy storage systems.

Lockheed Martin, the world’s largest defense contractor, is positioning to secure stable supplies of key inputs as geopolitical competition and industrial policy reshape global sourcing strategies. By aligning with an Australian partner, the company also supports allied diversification away from Chinese and Russian mineral dominance.

Both firms said the agreement could expand to include future offtake and production increases as demand for scandium grows. Friedland called the collaboration “an important initiative” that reflects “a new geopolitical reality” of closer industrial ties between allied nations.

By Charles Kennedy for Oilprice.com