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1) BHP Group made a deal to look for copper in Serbia as the race to secure this critical mineral is underway as projections show a deficit in supply and demand. This deficit in turn projects a higher copper price and major mining companies are betting on this bullish outlook as they try to acquire operations and look for new deposits. BHP already agreed to acquire OZ Minerals, an Australian copper producer, for $6.4 billion and Rio Tinto took full control of Turquoise Hill for $3.1 billion, another copper producer. BHP has joined forces with Canada's Mundoro Capital which has 3 exploration targets in Serbia and will allow BHP to take full control of any or all of them. BHP is also looking to balance its portfolio as it looks to bet on the future critical minerals, such as nickel and copper, and away from its core of fossil fuels and iron ore. Rio Tinto has a presence in Serbia already, trying to build a lithium mine that has faced protests by environmental and opposition groups over pollution risks, which prompted the government to stop the development.
2) Excelsior Mining has received the green light from the Arizona Department of Environmental Quality (ADEQ) for a new leach pad at its Johnson Camp facility. The Permit includes the construction and operation of a heap leach pad to produce copper from its historic pits in Cochise County, Arizona. "The permit approval is also welcomed in the context of the technology. We are excited for the potential that Johnson Camp brings to Excelsior to complement our growing mining camp in Southern Arizona, one of the best jurisdictions in the world for mining the critical minerals required for our ever-changing world," said Robert Winton, SVP Operations.
3) 52% of the global commodities business intelligence company CRU's clients in the metals and mining industries expect global gross domestic product (GDP) to grow by no more than 1% this year, according to a yearly survey. The outlook is less than the CRU's forecast for global GDP growth in 2023, which is predicted at 1.6%. Inflation is the most cited downside risk, with 70% of clients responding to it. This is followed by high energy prices with 60% and the escalation of the Ukraine-Russia war (47%). These risks have overshadowed the impact of climate change and the deterioration in US-China relations. The CRU economist head Alex Tuckett said that "the results paint a picture of a metals and mining sector that is cautious about the global economy in 2023, and mindful of the downside risks - an expected outcome of a volatile year. Climate-related risks have slipped down the agenda as the world focuses on the Russia-Ukraine war and resulting high energy prices and inflation, reflected in the forecasts for lower EV market share. We hope 2023 brings fewer economic and political shocks and more stability."