The Financial Post reports in its Wednesday, March 6, edition that Energy and Natural Resources Minister Jonathan Wilkinson has expressed concern about the falling prices of minerals that are crucial for the energy transition from fossil fuels because it is hindering the flow of capital into the projects Canada and its allies want to develop. The Post's Naimul Karim writes that Mr. Wilkinson says Australia, Canada, the European Union and others are talking about the issue. Falling prices also drive away investors, who miners depend upon for exploring and developing projects. For example, some of Canada's junior lithium miners have decided to either move to commodities that are in demand or postpone their exploration activities until prices rise again.
Albemarle, the world's largest lithium producer, plans to cut costs and lay off employees. North American Lithium in late January said it was looking to reduce its cost base.
Wilkinson said auto and battery makers need to be more high-value commodities made responsibly and in an environmentally friendly manner. A year ago, Lithium Americas was trading a tad under $33. The shares finished Tuesday at $6.73.
© 2024 Canjex Publishing Ltd. All rights reserved.