FMF2024 Report Reveals Need For $5.4 Trillion In Mineral Investment By 2035 To Support Energy Transition

The Future Minerals Forum (FMF) has unveiled its latest report, "Shaping the Future of Minerals," in collaboration with prominent industry think tanks. This report delves into creating shared value within the mining ecosystem. Ali Al-Mutairi, FMF's Executive Director, stated, "The Report provides authoritative content that tackles the tough issues facing the supply of minerals and aims to spark debate on the way forward at FMF in January 2025."

Al-Mutairi highlighted the immense potential of the Super Region in driving global energy transitions through untapped mineral resources. However, he noted that a staggering US$5.4 trillion investment is necessary to maintain and expand global mining and processing facilities. This amount is nearly equivalent to the combined GDP of Japan and Spain.

The report indicates that over 90% of mass movement involves coal, iron ore, copper, and gold. More than 70% of total capital will be allocated to these commodities, with approximately 75% dedicated to sustaining existing assets. The steel value chain alone requires about US$1.6 trillion in sustaining capital expenditure.

Regions such as Asia Pacific, India, Latin America, and Sub-Saharan Africa are expected to receive over 40% of total capital investment. This shift reflects changing capital flows towards emerging markets. By 2040, production of cathode materials, battery cells, and battery recycling could generate around US$800 billion annually.

Mark Cutifani from Vale Base Metals emphasized partnerships for creating shared value in mining industries: "In the end, partnerships for shared, durable value creation and commitment to supporting commercial frameworks can go a long way toward meeting and exceeding key stakeholder expectations."

Principal Consultant at CRU Ionut Lazar stressed collaboration's importance: "Collaboration across sectors is essential to meet global decarbonization targets – it cannot be achieved by a single entity. It is a global, multi-stakeholder challenge that requires strategic collaboration."

Government Role and Policy Implications

Peter Bryant from Clareo-DPI highlighted government roles in fostering shared prosperity: "To date, the minerals industry has not prioritized shared prosperity effectively... Companies are taking on the responsibility of creating shared value." Dr. Michelle Michot Foss echoed this sentiment by emphasizing government responsibilities in ensuring benefits from economic rents build trust.

Patrick Barnes from Wood Mackenzie discussed value addition benefits: "Value addition can provide countries with a range of well-known benefits: increased GDP... But countries cannot afford to proceed blindly." He stressed understanding market dynamics for competitive investment attraction.

Sustainability and Governance

Global AI Corporation CEO Richard Rothenberg underscored sustainable practices' importance: "As the demand for critical minerals continues to grow... policymakers and investors should prioritize sustainable practices." Transparent governance ensures long-term success and positive public perception.

The fourth edition of the Future Minerals Forum will take place in Riyadh from January 14-16, 2025. The event will focus on "Delivering Impact" with participation from high-level officials representing governments, mining companies, financial institutions, research centers, and universities.

With inputs from SPA