Miners such as BHP Group are adding to their profit margins by early stage processing of their ores to turn them into chemicals used by the battery sector.
Over the coming years, South 32 plans to develop its large
Clark manganese oxide deposit at its Hermosa project in Arizona,
CEO Graham Kerr said.
The United States has set itself up as the most attractive
destination for critical minerals investment, with tax breaks
and grants among its incentives, and easier regulation than
jurisdictions like the European Union and Australia, he said.
"Whether it's us or Rio (Tinto)... everyone has
opportunities to invest money in every jurisdiction," he said.
The United States last year introduced tax incentives to
increase domestic production of critical minerals, as it
attempts to decrease its reliance on China.
Australia is a major supplier of lithium, cobalt, rare earths, copper, graphite, and manganese, known collectively as critical minerals and all vital for the shift to a greener economy.
Their processing is mainly carried out in China, where they are transformed into materials used in products, including batteries for electric vehicles and missiles.
The focus of Western nations on reducing China's hold on
these minerals has intensified following supply disruptions
during the COVID-19 pandemic.
Amid a flurry buyout activity in the sector, Kerr said
South32's was firstly developing what it has, including
promising copper deposits in Alaska, Arizona, Argentina and
Chile.
"We've got lots of options," he said. "We'll always look at
things externally but it's going to be through the lens of value
and not blowing up the balance sheet."
(Reporting by Melanie Burton in Melbourne;
Writing by Alasdair Pal; editing by Barbara Lewis)
