Ronald Phillips on the Modern-Day Gold Rush

With the emergence of new mining sites and the increased demand for raw minerals, expect an influx of new mining projects across many metals. Ronald Phillips expects more miners will attempt to open new project and expand old ones.

However, Phillips believes mining companies will have a challenging time turning a profit despite the higher market value of raw minerals. The mining sector faces several new areas of concern. New mining outfits might not successfully execute their first projects because of the steep price of oil and other inputs, shortages of skilled mining professionals, and the tedious permit approval process.

The Ukraine-Russian War’s Impact on Mining

Following the start of the Ukraine-Russian War, sanctions against Russia disrupted mineral exports leaving Russia while the damage from the war stopped Ukrainian exports. Unfortunately, the global supply chain was already lacking raw minerals, and the disruption of Russian exports only emphasized the demand for new global mineral resources.

Nevertheless, several mining organizations will attempt to minimize the gap. Some government agencies have already putting extraordinary measures in place to increase production.

The Most Popular Mining Sites

Countries with significant mining industries include China, Australia, Canada, Chile, South Africa, the United States, and Russia. Mining companies will continue excavating in these countries. However, Ronald Phillips believes that miners will attempt to open new mines in more challenging jurisdictions, especially with the diminishing resources in established mining jurisdictions.

Monopolizing the Global Mineral Market

Ronald Phillips doesn’t think anyone can monopolize the global mining market. However, governments and private mining organizations are attempting to dominate extraction of specific resources in certain countries. For example, the Mexican government is asserting national control over Mexico’s lithium mining.

Bottom Line

Are we headed toward a new gold rush? Technically, no. Although the demand for raw minerals has recently spiked to an all-time high, Ronald Phillips believes that a quick response of new mining will be prevented by regulations and shortages.

In addition, mining startups require enormous amounts of capital and years of planning, permitting and construction before they start producing metal. High costs, lack of funding, and difficulties with permits all require that new entrants into the space must be very patient and prepared for challenges. Otherwise, they’ll go bankrupt before “striking gold.”



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Ronald Phillips

Ronald Phillips is a seasoned corporate attorney based in New York City and Westport, Connecticut. He is the North America-based analyst.