The Shift in Capital Allocation Toward Green Minerals

The surge in investment is being driven by a rare alignment of government policy, consumer demand, and corporate strategy. Governments around the world are providing billions in subsidies and low-interest loans to secure their domestic supply chains for lithium, nickel, cobalt, and graphite. At the same time, institutional investors are increasingly applying ESG (Environmental, Social, and Governance) filters to their portfolios, leading them away from fossil fuels and toward the “solutions-oriented” mining of battery metals. This has created a massive pool of capital that is specifically earmarked for green mineral projects.

This shift is particularly evident in the junior mining sector. Historically, small exploration companies struggled to find the funding needed to transition from discovery to feasibility. Now, high-quality lithium and nickel projects are attracting attention from venture capital and specialized private equity firms early in their lifecycle. This early-stage funding is crucial for accelerating the development timeline, allowing projects to move through the permitting and engineering phases much faster than they would have in a traditional market cycle.

Automotive OEMs as Direct Investors

One of the most significant developments in the current cycle is the emergence of automotive original equipment manufacturers (OEMs) as direct investors in mining companies. In a bid to secure their future production lines, giants like Tesla, General Motors, and Volkswagen are no longer content to wait at the end of the supply chain. They are moving “upstream,” signing multi-year off-take agreements and taking direct equity stakes in mining projects. This provides the miners with the “bankability” they need to secure traditional debt financing for construction.

For the automotive companies, these investments are a form of insurance against price volatility and supply shortages. By locking in their material costs and ensuring a guaranteed supply of battery-grade minerals, they can better plan their long-term EV rollout strategies. This trend toward vertical integration is blurring the lines between the automotive and mining industries, creating a more interconnected and resilient supply chain that is fundamentally different from the one that powered the internal combustion era.

The Global Expansion of Nickel and Cobalt Production

While lithium often gets the most attention, the investment landscape for nickel and cobalt is equally dynamic. High-nickel chemistries are essential for long-range EVs, leading to a scramble for high-purity, Class 1 nickel. This has spurred massive investments in regions like Indonesia, which has become the global hub for nickel production. However, because most Indonesian nickel is found in laterite ores, bringing it to battery-grade quality requires complex and capital-intensive high-pressure acid leaching (HPAL) technology.

Cobalt, despite efforts to reduce its usage in batteries, remains a critical component for safety and energy density in many chemistries. The investment here is focused on ensuring ethical and transparent supply chains. Companies are investing in large-scale, mechanized cobalt mines in the Democratic Republic of Congo (DRC) to move away from the risks associated with artisanal mining. At the same time, there is a push to develop “cobalt-free” alternatives and to expand production in more stable jurisdictions like Australia and Canada. These geographical and technological shifts are all being funded by the current wave of battery metals investments.

De-Risking the Mining Lifecycle Through Technology

Investment is also flowing into the technologies that make mining more efficient and less risky. Exploration technology, powered by AI and satellite data, is being used to identify new deposits with greater precision, reducing the cost of “blind” drilling. On the operational side, investment in automation and digital twins is allowing mining companies to optimize their throughput and reduce waste. These efficiency gains are essential for keeping production costs down in an environment where inflation and labor shortages are constant threats.

Furthermore, capital is being used to de-risk the environmental impact of new projects. Investors are increasingly demanding that mines have a clear plan for carbon neutrality, water management, and social impact. Funding is being directed toward onsite renewable energy plants, water recycling systems, and community development projects. By addressing these ESG concerns early, mining companies can reduce the risk of regulatory delays and social opposition, making their projects more attractive to the broader financial market.

The Strategic Importance of Domestic Supply Chains

In the wake of recent global supply chain disruptions, “strategic autonomy” has become a buzzword in many capitals. Governments in the U.S., EU, and Australia are using tax credits and direct grants to incentivize the development of domestic battery metal projects. The U.S. Inflation Reduction Act, for example, provides significant incentives for minerals that are extracted or processed in countries with which the U.S. has a free trade agreement. This has triggered a wave of investment in Canadian and Australian mining projects that are seen as “secure” alternatives.

This government-led investment is creating a “two-tier” market, where minerals from ESG-compliant and geopolitically friendly regions command a premium. For mining companies, this provides a powerful incentive to maintain high standards and to build processing facilities closer to the end-user. This regionalization of the supply chain is a direct result of the current investment climate, which prioritizes security and sustainability over just-in-time, lowest-cost procurement.

The Role of Recycling in the Investment Thesis

No discussion of battery metals investments is complete without mentioning the circular economy. The investment community is increasingly viewing battery recycling as a “mining” activity. Huge amounts of capital are being poured into specialized recycling facilities that can recover lithium, cobalt, and nickel from end-of-life batteries and manufacturing scrap. This sector is seen as a high-growth opportunity that complements primary mining.

From an investment perspective, recycling has a lower risk profile than new mining projects it is located in stable jurisdictions, has a lower environmental footprint, and utilizes more predictable “ore” sources. Many of the same automotive OEMs that are investing in mines are also partnering with recyclers to create a closed-loop system. As the volume of EV batteries reaching the end of their life increases in the late 2020s, the recycling sector will become a major player in the global mineral supply, further diversifying the investment landscape.

Conclusion

The massive wave of battery metals investments currently sweeping the globe is the primary engine of the energy transition. By providing the capital needed for exploration, production, and refining, these investments are ensuring that the physical materials required for a clean energy future are available when needed. The transformation of the mining sector from a traditional extractive industry to a technology-driven, ESG-focused partner in the green economy is a direct result of this financial pressure. As we continue to scale up our climate ambitions, the synergy between finance and geology will only grow stronger, solidifying the role of battery metals as the most important commodity class of the modern era.

The Essential Role of Copper in Electrification

Copper has been central to electrical engineering since the days of Edison, but the current era of electrification is of a different magnitude. Renewable energy systems, such as wind and solar, are significantly more copper-intensive than traditional fossil fuel power plants. For instance, an offshore wind farm requires several miles of thick copper cabling to transport electricity from the turbines to the shore. Similarly, the decentralized nature of solar power with panels on millions of rooftops requires a vastly more complex and copper-rich distribution network than a single centralized coal plant.

As we move toward “electrifying everything,” from home heating to industrial processes, the load on our existing grids is set to double or even triple. This isn’t just about adding more power; it’s about upgrading the capacity of the entire system. Older transmission lines must be replaced with higher-capacity copper wiring to reduce energy loss over long distances. In urban environments, the densification of electrical infrastructure to support EV charging hubs is creating a localized boom in copper demand. This fundamental reliance makes copper the most sensitive barometer for the health of the global energy transition.

Smart Grids and the Digitalization of Power

Modernizing the grid involves more than just thicker wires; it requires the implementation of smart technologies. A “smart grid” uses digital communication to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users. These systems rely on a vast array of sensors, automated switches, and control systems, all of which require copper-intensive components. The goal is to create a more resilient and flexible network that can handle the intermittency of renewable energy.

The demand for copper in this sector is driven by the need for efficiency. Smart grids can optimize energy flow, reducing the amount of power wasted during transmission. However, achieving this optimization requires a high density of physical infrastructure. Every smart meter, every automated substation, and every energy storage interface adds to the global copper tally. As countries from the United States to China roll out trillion-dollar infrastructure plans, the demand for high-purity copper is outstripping current production capacities, leading to a scramble for new mining projects and more efficient recycling methods.

The Global Supply Challenge and Mining Dynamics

While demand for copper is accelerating, the supply side of the equation is facing significant headwinds. Many of the world’s largest copper mines, particularly those in Chile and Peru, are aging. As a mine matures, the “ore grade” the concentration of copper in the rock typically declines. This means that mining companies must process significantly more rock to produce the same amount of metal, increasing both costs and environmental impact. Furthermore, discovering new, high-grade copper deposits has become increasingly difficult and expensive.

The geopolitical landscape of copper mining is also shifting. While South America remains the powerhouse of production, new frontiers are opening in the Democratic Republic of Congo and other parts of Africa. However, these regions often come with higher operational risks and infrastructural challenges. To meet the looming supply gap, the industry needs to invest billions of dollars in new mines and the expansion of existing ones. This requires a stable regulatory environment and higher long-term price expectations to justify the enormous capital expenditures involved.

Innovation in Copper Extraction and ESG

To maintain their social license to operate, copper miners are increasingly turning to technology to reduce their environmental footprint. Modern copper mining is a water and energy-intensive process. Companies are now implementing water-saving technologies, such as desalinated water pipelines and closed-loop systems, to minimize their impact on local ecosystems. On the energy front, many mines are being powered by onsite renewable energy projects, effectively using the very metals they produce to decarbonize their own operations.

Advancements in leaching and smelting technologies are also allowing companies to process lower-grade ores more efficiently. For example, new chemical processes can extract copper from waste rock that was previously considered uneconomical. These innovations are essential for extending the life of existing mines and maximizing the recovery of resources. By aligning production with rigorous ESG standards, the copper industry is positioning itself as a responsible partner in the global green movement, rather than just a traditional extractive industry.

Infrastructure Investment and Economic Growth

The push for grid modernization is a powerful engine for economic growth. Infrastructure projects create thousands of jobs and stimulate demand across multiple sectors, from manufacturing to logistics. Governments recognize that a modern grid is a competitive advantage. Reliable, low-cost electricity is essential for attracting high-tech industries, such as data centers and advanced manufacturing, which are increasingly sensitive to power quality and sustainability credentials.

This economic impetus is reflected in national policy. The European Green Deal and the U.S. Infrastructure Investment and Jobs Act both earmark significant funds for grid upgrades. These policies provide the long-term demand signals that the copper market needs. When miners and refiners see multi-year commitments to infrastructure spending, they are more likely to invest in the long-term projects required to expand supply. This synergy between policy, infrastructure, and mineral demand is the defining characteristic of the current economic cycle.

The Role of Copper in the Circular Economy

As we build out this new infrastructure, we must also consider the eventual end-of-life of these systems. Copper is 100% recyclable without any loss of performance. It is one of the few materials where the recycling process is both technically feasible and economically highly attractive. Currently, around 30% of global copper demand is met through recycled material, but this needs to increase significantly to bridge the supply gap.

Developing a more robust “urban mining” infrastructure is key. This involves more efficient collection of decommissioned power lines, industrial equipment, and electronic waste. As old grids are modernized, the copper they contain should be captured and fed back into the production cycle for new components. By creating a circular copper economy, we can reduce the environmental pressure of primary mining and create a more resilient supply chain that is less dependent on fluctuating geological discoveries.

Conclusion

The rising demand for copper is a direct reflection of our global commitment to modernizing our electrical infrastructure. As we build the smart grids and renewable systems of tomorrow, copper will remain the indispensable link that connects energy production with consumption. While the challenges of expanding supply and maintaining sustainable practices are significant, they also present an opportunity for innovation and economic revitalization. By focusing on efficient extraction, smart infrastructure investment, and the principles of the circular economy, we can ensure that the “metal of electrification” continues to power our progress toward a cleaner, more connected world.

The idea is that coal is not only a great source of fuel, but it also has small quantities of precious metals in it. For a country such as China which mines and burns massive amounts of the material, disregarding this resource is equivalent to throwing money on the table.

Explains Dai Shifeng, a member of the Chinese Academy of Sciences and professor at China University of Mining and Technology-Beijing, “The coal refuse contains a variety of metal elements and could become an important source of critical metal supply.”

What is recommended is not only the utilisation of fly ash, which is the waste left after the combustion of coal, but also what is commonly referred to as gangue. This is the rocky junk that usually gets mixed in with the coal as it gets mined.

Waste coal to metal resource

Coal occurs in seams or layers, often interbedded alongside layers of non-coal. They are frequently filtered out and just dumped as waste. As for fly ash, once the carbon is burnt away, the ash that remains is full of small mineral fragments that are often captured in smokestacks.

In the past, this ash has been dumped as industrial waste, mixed into cement or piled up. However, chemically speaking, this ash often has unexpectedly high levels of rare earth metals, aluminium compounds, etc.

These metals are critical for some advanced sectors like batteries, semiconductors, optics, motors, along with military applications. China has already been a leading supplier of many conventional mining and supply products, so any novel way to make money for old rope could be an important possible revenue stream.

Further, China already has the industrial base to employ waste materials such as fly ash and gangue to be a potential source for metals. Its huge coal infrastructure, coal-to-chemical plants as well as processing plants are easily adaptable to bear the weight.

The report explains that on-board facilities for regular washing, chemical processing and power generation are already available on coal production lines of China, offering a strong industrial basis for resource recovery. In short, China knows how to do this and has the capability to do it. The coal waste has already been highly concentrated where it ought to be for processing, i.e., concentrated within industrial areas.

Such a move would not just help feed the exploding EV, battery as well as electronics industries of China, but also assist it in meeting its goals of reducing reliance on imports. It would also help these individuals reduce waste, get the most value for their money out of coal mining and consumption, and assist them in effectively vertically integrating their supply chains.

Seems obvious; however, there is a catch – not all coal is identical, and different mines have distinct geological conditions with very different mineral traces within the coal produced.

At power plants, coal from various sources can be mixed, and the resultant fly ash may differ significantly in structure. This means, in fact, that one batch of fly ash might be loaded with something such as gallium while another has barely any.

That would render the extraction of critical metals from coal waste erratic and possibly not economically feasible if the process of extraction is costly.

The report further said that as the new energy industry develops rapidly, the need for critical metals is increasing, so the extraction of critical metals from coal waste is highly probable, and China’s expertise in germanium extraction offers a firm foundation for the extraction of various other metals.

Mutapa Gold Resources, which is a state-backed miner, said on May 11, 2026, that it would spend $12 million on exploratory drilling at its gold assets within the country in 2026.

The move is part of a wider growth strategy, on top of existing investments from private mining companies like Caledonia Mining as well as Ariana Resources.

It is well to be noted that Mutapa Gold Resources is the mining arm of the sovereign wealth fund of Zimbabwe – the Mutapa Investment Fund. The company operates three gold mines in the country – Freda Rebecca, Jena as well as Shamva.

As per the company, the investment will be used to fund drilling programs at each location in order to extend the operating life of the mines by around 10 years.

Mutapa Gold also said it is seeking to raise some $250 million in financing so as to underwrite expansion plans to boost capacity for production throughout the three operations.

The declaration follows just days after Ariana Resources, the British mining company, began a A$1 million metallurgical testing programme at the Dokwe gold project.

The work aims to promote a final feasibility study for Dokwe, believed to be one of the next large-scale industrial gold mines in Zimbabwe, along with the Bilboes project being advanced by Caledonia Mining.

It is worth noting that the construction work has already begun at Bilboes. Caledonia alone intends to make investments of $132 million into the project in 2026.

Zimbabwe makes the strategic gold industry robust

The impetus for these projects came from gold prices jumping over 60% in 2025, prompting mining companies throughout Africa to fast-track investment in new developments.

Zimbabwe has become more and more identifiable within that pattern as the country seeks to build a gold industry still ruled by artisanal mining. Small-scale and artisanal miners continue to generate around 65% of Zimbabwe’s gold.

At present there are only a handful of industrial mines operating in the country – Caledonia Mining’s Blanket mine, Mutapa Gold Resources as well as Namib Minerals – How mine. Namib Minerals is also working on reopening plans for its Redwing as well as its Mazowe operations.

Apparently, the gold production in Zimbabwe hit a record 46.7 tonnes in 2025, a 17% increase compared to 2024. The new mining projects have the potential to substantially boost production in the coming years. The mine is anticipated to add approximately 200,000 ounces of yearly gold production alone in Bilboes, which is about 6.22 tonnes, once it reaches full output in 2029. Industrial mining expansion might become a more significant factor for Zimbabwe’s economy.

Gold is still the biggest export from Zimbabwe and is also crucial to the sustenance of the local ZIG currency by means of the Reserve Bank of Zimbabwe’s gold reserves strategy.

Financing is still a big challenge

But in spite of the rapid growth in the sector, the achievement of many of the announced projects will continue to depend on the extent to which companies can obtain the financing required to move innovations forward.

In the case of Mutapa Gold, negotiations remain ongoing to finalise the financial structure to generate the funds required to conduct a mine expansion. At the same time, the artisanal mining sector of Zimbabwe is also looking to formalise operations.

Recently, the Zimbabwe Miners Federation – ZMF went on to propose a roadmap to better regulate small-scale mining activities and also ensure that a bigger chunk of gold production is funnelled into formal trading systems.

Authorities and industry players observe those reforms as an additional important step towards tightening regulation of the gold mining sector in Zimbabwe all while boosting official gold circulation into the national economy.

Rare earth processing focus

It is worth noting that rare earth metallurgy and magnet manufacturing technologies are likely to be a major collaboration area. India happens to have heavy reserves of rare earth-bearing minerals, including reserves of monazite, but is heavily reliant on imports for sophisticated processing and high-performance permanent magnets that include neodymium-iron-boron – NdFeB magnets. India’s growing industrial goals could see it team up with institutions and firms in Russia engaged in rare earth research and in processing nuclear materials as prospective technology and investment partners.

Backing India’s manufacturing aspirations

These partnership talks on critical minerals and rare earths are part of India’s larger efforts to bolster its domestic critical mineral as well as magnet-manufacturing capacity. The Indian government has initiated programmes so as to achieve import independence for components utilised in electric mobility, electronics, wind energy, and strategic sectors.

Industry experts say that long-term access when it comes to processed rare earth materials is growing more crucial as worldwide demand for high-performance magnets keeps steadily increasing.

Wider geopolitical context

The increasing emphasis on critical minerals is part of a broader global concern regarding supply chain concentration as well as geopolitical risk. As China now controls much of the rare earth refining as well as magnet manufacturing ecosystem globally, many countries are searching for alternative sources and technology partners. As part of its long-term energy transition strategy, India has also been scouting for overseas lithium possibilities in South America and Africa.

Why it is important

Energy transition – Lithium and rare earths are vital for electric vehicles, batteries, and wind turbines, along with advanced electronics.

Industrial approach – Developing domestic processing capacity can help India move up the manufacturing value chain.

Supply-chain robustness – By diversifying sources and refining partnerships, reliance on centralised global supply networks is diminished.

Funding $1.3bn for Zambia Rail Project will support the creation of an 830-kilometre link between Zambia’s north-western copper belt and the Atlantic port of Lobito in Angola, an essential part of the Lobito Corridor. The route is intended to offer a quicker, more direct export route for critical minerals like copper and cobalt.

The sponsors of the project say the financing package involves $500 million each from the Africa Finance Corporation – AFC as well as the African Development Bank, with Italy putting in an additional $320 million.

When completed, the railway is expected to substantially decrease transport times for mineral exports from as much as 16 days to roughly seven days, minimising logistics costs and boosting the competitive edge of mining companies that operate in Zambia.

The project comes against a backdrop of increasing global demand when it comes to critical minerals utilised in electric vehicles and renewable energy systems as well as defence technologies. Analysts say that investment in infrastructure like the Lobito Corridor is becoming just as crucial as the minerals themselves, as nations and businesses seek safe and effective supply chains.

As per industry watchers, this is not just infrastructure, this is managing the flow of strategic resources. These industry watchers cite growing international rivalry over African mineral exports.

It is well to be noted that Zambia is the second-largest copper producer in Africa and has multiple large-scale mining projects underway or scheduled, putting it in an advantageous position to capitalise on growing demand. More production has led to an a greater need for efficient transport networks in order to bring minerals to global markets.

The railway is additionally anticipated to diversify export paths by decreasing dependence on longer, crowded corridors to ports on the eastern coast of Africa. The project will provide a direct link to the Atlantic and thus open up shortened shipping routes to Europe along with North America.

But the $1.3 billion pledge only covers an element of the railway’s projected $5 billion total cost, and more funding needs to be raised. Construction is due to start in 2026 itself and is scheduled to be completed by 2030.

The project will have to be financially viable with developers securing enough freight volumes from mining companies. Current commitments are close to one million tonnes a year, short of a projected demand of as much as three million tonnes.

The railway is, nonetheless, seen as a transforming investment that could cut transport costs, facilitate new mining projects, and encourage regional integration.

More broadly, the project is part of a wider trend in the mining sector in Africa, where infrastructure corridors are increasingly becoming essential drivers of economic growth as well as global competitiveness in the quest for energy transition minerals.

Held at the Delta Saguenay, the event will bring together key stakeholders from across the aluminum value chain from primary producers to processing companies, as well as equipment manufacturers, industry professionals, and decision-makers.

Horizon Aluminium 2026 aims to create a dynamic platform where expertise, innovative ideas, and strategic insights converge, sparking meaningful discussions and fostering collaborations that will help shape the future of the industry.

Led by the Aluminuim Valley Society (AVS), the event reflects a strong commitment to connecting the region’s know-how with global industry realities and challenges. The program is designed to fuel dialogue and support tangible exchanges, both in terms of knowledge-sharing and business partnerships.

Registrations for Horizon Aluminium 2026 are now open. Companies can also reserve a 10 ft x 10 ft booth to participate in the event as exhibitors.

From May 12 to 15, 2026, at the Delta Saguenay, the entire industry will come together under one horizon. Don’t miss this opportunity to join hundreds of key players for a single, unifying event.

The horizon is calling. It’s time to act.

The phase one program will consist of 6000m of drilling across 23 holes – 18 reverse circulation RC and five diamond – with Aquila as the primary target.

Previous drilling at Aquila also returned thick, punchy hits comprising 145m at 0.75% copper, 0.12% cobalt and 2.9 grams per tonne – g/t silver from 28m in one hole. A second hole returned 59m @ 1.77% copper and 0.04% cobalt as well as 5.2 g/t silver from 134 m.

Aquila is located within a well-defined copper and cobalt as well as silver corridor extending for over 10 km and connecting into the well-known Vero resource, 4 km to the southwest.

Vero happens to be a high-grade copper-silver-cobalt deposit, having 15.03 million tonnes at 1.46% copper and 10.59 g/t silver. It contains a cobalt resource of 9.15 million tonnes at 0.23% cobalt.

The copper and silver inventory of Vero is 220,000 tonnes of copper and 5 million ounces of silver having high-grade, ongoing mineralisation at a minimum of 250 m below the surface.

True North said the diamond drilling can assist in sharpening its awareness of structural controls on mineralisation at Aquila and help with modelling and future development studies. The RC drilling is going to test down-dip and along strike extensions.

With Aquila the present headline act and Vero an established resource base, True North is convinced the Mt Oxide district is indeed shaping up to be the biggest and highest-grade greenfield copper discovery in the region for over 20 years and has the potential to stand independently as a sulphide development asset.

Importantly, both Aquila and Vero host high-grade shoots that stay open at depth and along the strike, hence keeping an abundance of blue sky in the system as the company steps out with each program.

True North was first to flag the discovery of the Aquila deposit in mid-2025 after its first RC program uncovered considerable mineralisation and a new target area within the wider Mt Oxide corridor.

Since then, drilling and geophysics have extended the mineralised trend to an excess of 1.3 km along a structural corridor with over 10 km of prospectivity and numerous high-priority targets.

The other prospects, Acanthis along with Apollo, are on parallel trends on either side of Aquila, providing additional follow-up possibilities as the company works its way along the corridor.

The phase one program as part of the copper discovery in Australia is expected to run from April to June or July 2026, with the assay findings being incorporated into revised models as they are obtained, keeping in mind the target pipeline. Notably, the phase two program later in 2026 is anticipated to keep the momentum rolling. Management intends to use the outcomes of induced polarisation geophysics and geochemistry to improve phase two, stepping out further from Aquila, drilling Vero extensions as well as testing regional prospects such as Rhea and Apollo as well as Acanthis.

It is worth noting that the new campaign from True North comes after it, two weeks ago, moved to strengthen its hold on the Cloncurry district through agreeing to acquire Renegade Exploration’s 22.5% interest in the Carpentaria joint venture.

The binding agreement to acquire the Carpentaria JV share comprises a 35% interest in the key Mongoose tenement containing an inferred resource of 3.1 million tonnes grading 0.55% copper and 0.07 g/t gold.

Global miner Glencore is the senior partner in the joint venture via its wholly owned subsidiary Mount Isa Mines, which holds a 77.5% interest and happens to have a 40-day right of first refusal so as to match the deal.

The Cloncurry copper project, which is True North’s wholly owned, on the other hand, hosts the Taipan deposit and is adjacent to the Carpentaria joint venture with a tenement boundary separating both the projects.

The acquisition of Renegade’s interest by True North is targeted at combining the development plans for Mongoose and Taipan, which might result in a bigger, more efficient open pit at Cloncurry when the deal is settled. As the drill rods turn and phase two plans shape up, True North is poised for a steady supply of news through mid-year as it pursues its next step-up in terms of scale at Mt Oxide.

• It is a capital-efficient, self-funded drilling program of almost diamond drill holes
• It is the first systematic drilling in a decade at the historic Condobolin Mineral Field
• Testing down dip, on strike, new adjacent coincident geochemical as well as geophysical targets at the high-grade Meritilga discovery
• Meritilga follow-up drilling is proposed and fully funded – other open prior discoveries and larger causative porphyry centres are also under consideration as targets
• The recent corporate activity underscores the value of high-grade projects in the Cobar Basin

Drilling is in progress with AngloGold Ashanti at the Nevertire South porphyry project in the Macquarie Arc, which is highly prospective.

Gold copper explorer & hybrid project generator, Kincora Copper Limited – Kincora is pleased to report that drilling has now commenced at the Condobolin project located at the southern end of the Cobar Basin located in the Central West NSW.

The Technical Committee chair, John Holliday, and VP of Exploration, Peter Leaman, said they are very thrilled to be drilling at two highly prospective projects, including the first systematic drilling program in more than a decade on their wholly owned Condobolin project.

Their recent activities have included consolidation of the historic Condobolin mineral field, a large airborne geophysical survey, and a regional review when it comes to shallow historical workings, open prior explorer discoveries as well as potential causative porphyry targets.

Water and the weathering profile were used to constrain mining and exploration, but these historical limitations are now a strong opportunity. The final stage of drilling delivered proof-of-concept with favourable outcomes and simple exploration upside at a number of historical mines and new discoveries, which includes a blind high-grade gold discovery at Meritilga.

It is well to be noted that the recent M&A in the Cobar district points out the strategic value of high-grade precious as well as critical mineral deposits, especially where advantages can be unlocked from current processing capacity. The Condobolin project is the kind of asset that a junior explorer such as Kincora can add substantial value to.

The southern Cobar Basin is still comparatively underexplored, with recent findings in historic mining districts.

The action, which is published in the Federal Register on April 23, 2026, permits certain steel and aluminium producers with operations in Mexico or Canada to submit documentation so as to obtain tariff relief under Presidential Proclamation 10984. The adjustment is for firms that supply, directly or indirectly, to US automobile or medium- and heavy-duty vehicle producers and engage in new US production capacity.

The US tariff adjustment process enables the US Department of Commerce to cut tariffs on steel and aluminium by half of the applicable rate. But it cannot be less than 25% after adjustment. Note that the benefit applies only to imports which qualify for special consideration under the USMCA and that were either melted and poured or smelted and cast in Mexico or in Canada.

Apparently, the measure may bring relief to Mexican steel and aluminium suppliers integrated into North American automotive supply chains, especially those providing manufacturers of automobiles, auto parts, medium- and heavy-duty vehicles, and associated components. Access to the lower tariff, however, is conditional. Producers will need to show that their commitments will increase US primary steel or aluminium production capacity and promote key vehicle-related industries.

The policy comes as Mexico’s auto industry continues to attract substantial investment in spite of tariff ambiguity and the move toward advanced manufacturing. MBN says the sector has attracted US$21 billion of investment as companies transition to technology-driven projects, underscoring the role of Mexico as a major production and supplier base for North America’s vehicle industry.

That investment context is important since the new US tariff regime does not just reward regional integration. It ties tariff relief to the ability of the company to prove North American origin and compliance with the USMCA as well as future capacity commitments within the United States. This means Mexican suppliers may increasingly need to stay highly competitive in the US market by keeping business operations in Mexico and coordinating part of their investment strategy with US industrial policy.

Eligible companies may file project-by-project documentation describing proposed investment plans, production sites, expected capacity, objectives, suppliers, contractors, raw materials and expected hiring with regard to the new US capacity, the Commerce Department said. Applications must also detail the qualifying status of the company, including its production of steel or aluminium in Mexico or Canada and the U.S. auto manufacturers it supplies to.

The notice follows Proclamation 10984 issued in October 2025 that enforced additional tariffs on imports of medium- and heavy-duty vehicles, parts and buses under Section 232 of the Trade Expansion Act of 1962. The proclamation mentioned national security concerns and provided the commerce secretary authority to change tariffs on certain steel and aluminium imports coming from Mexico and Canada if producers make additional commitments to increase US production capacity.

In February 2026, the Federal Register went on to publish procedures for importers of medium- and heavy-duty vehicles that qualify for USMCA preferential treatment in order to determine US content. This framework enables qualifying vehicles from Mexico and Canada to apply extra tariffs only to their non-U.S. content, thereby strengthening the importance of USMCA compliance when it comes to tariff treatment.

For Mexico, the policy comes as an opportunity as well as a limitation. Eligible producers may decrease tariff exposure when they meet US requirements and conform with USMCA rules of origin on the one hand. However, the benefit is conditional on commitments to increase production capacity in the United States, which means Mexican as well as Canadian suppliers will need to ensure that their future investment plans are aligned with the US industrial policy priorities.

This comes as Washington continues tightening its Section 232 tariff regime on metals. In April 2026, the White House extended actions impacting imports of aluminium, steel and copper, saying Section 232 duties on aluminium and steel articles and derivatives would typically apply to the entire customs value of imported products.

The tariff-adjustment mechanism might assist in relieving cost pressures in regional supply chains for makers of autos as well as heavy trucks, especially the ones that purchase steel and aluminium inputs from Mexico and Canada. Companies will have to file extensive documentation, reach milestones established by the Commerce Department and demonstrate that the qualifying imports are connected to the new US production capacity.