Mining boss calls for price support to challenge China’s critical minerals dominance

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Western governments should provide price guarantees for critical mineral miners if they want to compete with Chinese competitors who receive great support to the state.

Neal Fronman’s comments come as industrialized countries are concerned about China’s dominance in the production and treatment of critical metals – but they did not stop specifying the prices of raw materials or creating a joint purchase program.

“They have to settle the stadium for us as mining companies,” Fronman, CEO of Platinum Platinum and Battery Metals told the Financial Times. “If we create the United States or even Europe, we must guarantee some prices in order to get the right returns.”

Over the past year, China has suspended exports of some materials such as rare land, mule, gearmanium and graphite, creating pressure on supply chains in the manufacturing of defense, auto and conductors in Western countries.

The idea of ​​the common purchase mechanism, in which the United States and allies, such as Australia, will adhere to material purchase materials, have been attracted since the summit of the Group of Seven last month, according to persons familiar with governments thinking.

Participants in Group 7 at the summit pledged to develop “standards -based markets” for critical minerals, which are seen as a possible first step towards a joint purchase gathering.

Sibanye has expanded to battery minerals in recent years as it seeks to benefit from high demand due to electric cars and energy transmission. It has a Li -Indeel project and the nickel refinery in France.

Fernman, who is scheduled to retire in September, said that Chinese mining competitors were able to reach a lower financing cost and follow the various environmental standards that reduced their costs. But he defended Sebani’s decision to meet the needs of customers in the West in the first place.

“We have realized that the world would have been eliminating east and west. We specifically chose to be a mining of a contract for the Chinese, like many miners,” said Fronman, who has led Sibani since it was formed in 2013.

Sibanye has received some government support for specific projects, but Froneman called on the United States and Europe to make more effort.

“We bear higher costs, and we have higher capital costs,” he said.

The company, which has an evaluation of the $ 7 billion in the institution, has reported net losses in 2023 and 2024, due to the low prices of platinum and albadium, and to see its American operations.

Richard Stewart, Sibani’s chief regional official in South Africa, is scheduled to succeed Fernman from October.

The Finnish Lithium project in Sibani received a loan of 500 million euros last year, supported by the Credit Agency in Finland, the European investment Bank and other financiers. The Gallicam project in France, which re -using the nickel refinery to produce the spray battery minerals, has been chosen with a grant of 144 million euros from the European Union Innovation Fund.

Its projects in the United States have received tax balances worth up to $ 60 million this year, according to the company’s reports.