Deep-Sea Mining Attracts Investor Interest
The Metals Company, a US-based firm, conducted a presentation showcasing ore samples extracted from 4-kilometer depths in international waters. The event drew representatives from major global non-ferrous metals companies, including Mitsubishi, Glencore, and Panasonic Energy. The samples demonstrated high concentrations of nickel, cobalt, and copper, highlighting the potential of deep-sea mining operations.
Three distinct types of marine non-ferrous metal deposits exist in ocean environments. Polymetallic nodules represent the first category, found on abyssal plains and partially covered by fine sediments. These formations contain iron, copper, manganese, nickel, lead, cobalt, zinc, and notable quantities of lithium, molybdenum, titanium, and niobium. The second type comprises cobalt crusts that develop on underwater mountain slopes and peaks at depths ranging from 400 meters to 7 kilometers through mineral precipitation from seawater. These crusts hold manganese, iron, copper, nickel, cobalt, and various rare metals, including rare earth elements. Polymetallic sulfides constitute the third category, rich in iron, copper, zinc, silver, and gold, typically located at tectonic plate boundaries along mid-ocean ridges and volcanic arcs at approximately 2-kilometer depths.
Currently, no industrial-scale mineral extraction occurs in international waters. The International Seabed Authority regulates all mineral extraction activities in these areas and has issued 31 exploration licenses: 19 for polymetallic nodules primarily in the central Pacific Ocean, 7 for polymetallic sulfides along mid-ocean ridges, and 5 for cobalt-rich crusts in the western Pacific.
Environmental concerns surrounding deep-sea mining operations focus on emissions from seabed mining equipment and surface vessels. Excessive concentrations of exhaust particles in water could trigger irreversible ecological consequences, though acceptable threshold levels remain undefined. Natural seabed conditions maintain very low concentrations of such substances, suggesting tolerance levels may be minimal. Metal particles released during extraction from pore water and crushed ore can persist in ocean environments for up to 1,000 years, far longer than exhaust particles. In the mesopelagic zone, spanning 200 meters to 1 kilometer depth where complete darkness prevails, mercury contamination could enter seafood consumed by humans, potentially causing severe health impacts.
Mining equipment noise will create stressful conditions for marine organisms, affecting larval development, hunting patterns, and communication among marine mammals. These effects will be particularly pronounced in mountainous underwater regions where marine life congregates. Vertical migration patterns may be disrupted, potentially destabilizing ocean food chains. Despite these environmental threats, exploration and development projects for deep-sea non-ferrous metal deposits are expected to continue in coming years.
Platinum Shortage Persists
The World Platinum Investment Council released its first quarter 2025 platinum market report, revising the global platinum supply deficit forecast for the third time to 966,000 ounces for the current year. Global demand in the first quarter increased 10% year-on-year to 2.274 million ounces, driven primarily by high investment demand linked to sharp increases in platinum exchange reserves. Tariff uncertainty and growing location premiums contributed to increased metal inflows to the United States.
Total platinum supply declined 10% to 1.458 million ounces, reflecting seasonal weakness in the mining sector during the first quarter. This created a deficit of 816,000 ounces in the reporting period, representing the largest quarterly deficit in six years. The projected total supply for 2025 represents the lowest level in five years, with total supply expected to decline 4% to 6.999 million ounces. The Council forecasts demand could fall 4% to 7.965 million ounces in 2025, as growth in jewelry and investment sectors will not fully offset declining automotive and industrial demand.
Mine supply is expected to contract significantly this year. Total mining sector supply fell 13% year-on-year in the first quarter to 1.086 million ounces, the lowest quarterly production since 2020. Weakness across all major producing regions except Russia contributed to the decline, with South Africa experiencing the bulk of the reduction due to heavy rainfall, leading to a 10% year-on-year drop in refined platinum production to 715,000 ounces. The decline in total supply was partially offset by a 2% year-on-year increase in secondary processing to 372,000 ounces, resulting in total supply falling 10% year-on-year to 1.458 million ounces in the first quarter.
Full-year mining industry supply is expected to reach only 5.426 million ounces, down 6% and approximately 701,000 ounces below the five-year pre-pandemic average. Global secondary recycling is forecast to show modest recovery in 2025, increasing 3% year-on-year to 1.573 million ounces.
Jewelry demand continued its recovery and is expected to grow 5% in 2025. First quarter platinum jewelry demand grew in all regions except India, increasing 9% to 533,000 ounces. Jewelry demand is expected to continue recovering throughout 2025, building on 2024 growth, increasing 5% year-on-year to 2.114 million ounces as platinum benefits from its price discount relative to gold. China is expected to see significant growth of 15% year-on-year to 474,000 ounces, while European demand is forecast to grow 7% to reach record levels. North America will also experience growth of 8%, while Indian demand may weaken 10% year-on-year to 240,000 ounces due to declining exports amid US tariff uncertainty.
Investment demand in 2025 is expected to remain stable, supported by a 48% increase in Chinese bar and coin demand. First quarter investment demand for platinum rose 28% compared to the previous quarter to 461,000 ounces, mainly due to sharp increases in exchange-held platinum stocks. Bar and coin demand also increased 17% year-on-year to 70,000 ounces, with Chinese purchases of platinum investment bars weighing less than 500 grams reaching record highs, growing 140% year-on-year to 31,000 ounces and offsetting declines in other regions. Investment in bars and coins is forecast to strengthen 30% to 252,000 ounces.
According to Trevor Raymond, CEO of the World Platinum Investment Council, the platinum market remains in structural deficit regardless of current geopolitical uncertainties.
Nigeria Establishes Lithium Processing Capabilities
Nigeria's first lithium mining and processing plant is scheduled for commissioning in June near the Kaduna-Niger state border, according to Nigerian Minister of Mines and Mineral Resources Dele Alake. The project requires approximately $600 million in investment and is expected to produce 4,000 tonnes of ore daily, from which up to 1,000 tonnes of spodumene concentrate containing 6% lithium oxide can be extracted. This material will be processed at a nearby facility to produce approximately 35,000 tonnes of lithium carbonate annually.
Chinese company Ming Xin Mineral Separation is the majority investor in partnership with Nigerian company Three Crown Mines. Three Crown Mines is also involved in constructing three similar facilities: one launching soon on the outskirts of Abuja, Nigeria's capital, and two additional plants in Nasarawa State.
These projects involve Chinese companies Canmax Technology, Jiuling Lithium Mining, and Avatar New Energy Materials. According to estimates by Nigerian company El-Tahdam Exploration, total national lithium carbonate production capacity could reach 80,000 tonnes annually. Minister Dele Alake emphasized the focus on converting mineral wealth into domestic economic value through job creation, technology development, and processing capacity.
Nigeria currently hosts a thriving illegal mining industry supplying lithium raw materials to China and India. Over the past decade, more than 20 mines have emerged, employing primarily women and children. Nigerian government attempts to shut down these operations have proven unsuccessful due to high unemployment rates, with people continuing to work in underground mines despite constant life-threatening risks.
Global Copper Surplus Continues
Global copper production in the first quarter of 2025 grew 1.2% to 5.6 million tonnes, with concentrate output increasing 1.4% and copper electro-extraction rising 0.5%, according to the International Copper Study Group. Primary growth centers were the Democratic Republic of Congo and Peru, with stable performance in Chile, while declines were recorded in the United States, Canada, Mexico, and Indonesia. Indonesian production declined significantly due to operational adjustments at the Grasberg mine, considered the world's largest copper operation.
Refined copper production increased 3% to 7.1 million tonnes in January-March. Red metal production from ore rose 3% to almost 5.9 million tonnes, while production from scrap and waste increased 3.5% to 1.2 million tonnes. Geographically, strong growth in copper production was recorded in the Democratic Republic of Congo, China, and India, offset by declines in Chile.
Apparent global copper consumption showed similar growth to production at 3%, reaching approximately 6.8 million tonnes in the first quarter. Demand for copper was strong in several Middle Eastern, Asian, and North African countries, but weakened in the United States, European Union, and Japan.
These dynamics resulted in a copper surplus of 289,000 tonnes according to International Copper Study Group calculations. However, this surplus may decline significantly by the end of the first half due to various market factors. International trader Glencore has been purchasing Russian copper on the London Metal Exchange with plans to supply it to China.
Exchange data shows requests for delivery of approximately 15,000 tonnes of copper from London Metal Exchange warehouses were received during three trading sessions, reducing available exchange stocks to their lowest level in a year. Glencore's transactions likely respond to challenging market conditions in China following Donald Trump's tariff threats on copper imports, which led to massive metal volumes being redirected to the United States. This prompted traders to purchase copper on the LME for delivery to the Chinese market.
Valterra Platinum Begins Independent Operations
Mining corporation Anglo American completed the spin-off of its platinum metals division into a separate company called Valterra Platinum. The new entity has been listed on the Johannesburg Stock Exchange and is preparing for a London Stock Exchange listing. However, initial trading on the Johannesburg Stock Exchange was marked by declining share prices, reflecting market participants' skepticism about the company's condition despite positive statements from Anglo American management prior to the spin-off.
For 2025 and 2026, the company plans to produce 3-3.4 million ounces of platinum group metals, including 2.1-2.3 million ounces at its own facilities with the remainder through tolling arrangements. In 2027, production is targeted at 3-3.5 million ounces, with 2.3-2.5 million ounces directly at Valterra Platinum facilities.
The establishment of Valterra Platinum forms part of Anglo American's asset portfolio restructuring strategy, which includes selling nickel mining operations in Brazil and coking coal operations in Australia. The company is also exploring options for selling its stake in De Beers, the world's leading diamond miner, which faces revenue challenges from cheap synthetic stones and weak demand in India.
Valterra Platinum CEO Craig Miller sees significant potential for platinum price increases due to projected global shortages caused by renewed demand from jewelry manufacturers and automakers using platinum catalysts. Valterra Platinum management plans to distribute 40% of net profits to security holders and may consider share buybacks if platinum and platinum metal prices trend toward sustained growth and excess cash becomes available.
