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#Jakarta: #Coal and #Nickel dilemma: Racing for revenue, lagging in readiness

Posted on April 8, 2026 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

A silhouette of Indonesia features an industrial landscape on the left with smokestacks and an oil rig, and a renewable energy scene on the right with wind turbines. Road signs reading 'DEAD END' and 'Hope Ahead' are included.

A potentially widening budget deficit amid soaring global oil prices has prompted Jakarta to explore alternative revenue sources, including export duties on nickel and coal, commodities that are currently benefiting from relatively strong price trends.

The push for rapid revenue mobilization, however, appears to be running ahead of sectoral readiness. President Prabowo Subianto has approved a coal export duty, with tariffs reportedly still under discussion depending on price levels, initially slated for implementation on April 1. However, its rollout remains subject to ongoing cross-ministerial deliberations, particularly regarding its impact on mining sector profitability.

As highlighted by Energy and Mineral Resources Minister Bahlil Lahadalia, the structure of Indonesia’s coal exports complicates policy design. Around 60-70 percent of exports consist of low-calorific, lower-value coal, meaning that a uniform export duty risks disproportionately burdening producers operating on thin margins. This has prompted the minister to adopt a more cautious stance, delaying implementation until a more calibrated approach is formulated. Yet this caution contrasts with parallel intervention on the supply side. The government has tightened production through the Work Plan and Budget (RKAB) mechanism, capping approved output at around 580 million tonnes. This figure is well below the previous year’s realization of 790 million tonnes, aimed at preventing oversupply and supporting global prices.

The escalation of geopolitical conflict in the Middle East has helped sustain elevated energy and mineral commodity prices. Coal prices have remained consistently above US$135 per tonne, while nickel prices have also stayed relatively stable. This sustained price momentum has prompted the government to take strategic measures to safeguard the state budget. Export duty revenues in the 2026 state budget are projected to surge to Rp 42.56 trillion (US$2.5 billion), marking an increase of more than 850 percent. This sharp rise underscores the urgency behind recent policy initiatives.

This creates a fragmented policy mix. While fiscal authorities push for revenue mobilization through export duties, sectoral regulators simultaneously restrict output to stabilize prices. Rather than a fully coherent strategy, the current approach reflects an unresolved tension between short-term fiscal pressures and longer-term industrial and market considerations.

This tension becomes even more apparent when compared with the government’s more assertive stance in the nickel sector. The government is currently formulating an export duty on nickel-based products, particularly nickel pig iron (NPI), although the exact tariff structure and rates remain under deliberation. At the same time, supply-side controls have been introduced, with the nickel ore RKAB capped at around 150 million tonnes to safeguard domestic availability.

#DRC – #Kinshasa on verge of winning its bet on the #Cobalt market

Posted on April 7, 2026 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Illustration of the Democratic Republic of the Congo highlighted on a map of Africa, featuring a mining scene with a mineral processing plant and various minerals like cobalt, copper, coltan, and lithium. The country's flag is prominently displayed.

Fully focused on its goal of regulating the precious mineral sector, Félix Tshisekedi’s presidency expects significant fiscal returns this year. The authorities, however, have had to contend with pressure from Chinese operators eager to obtain larger quotas, as well as the reluctance of certain administrations.

Under the presidency of Félix Tshisekedi, the Democratic Republic of Congo (DRC) is aggressively reshaping its role in the global mineral market, specifically targeting the cobalt and gold sectors to maximize state revenue and economic sovereignty.

Fiscal Returns and Strategic Control

For 2026, the Congolese Treasury has set ambitious financial targets tied to its newfound status as a market “price maker”.

Projected Revenue: The government expects roughly $2.3 billion in public revenue this year from cobalt alone.
Market Influence: By implementing a strict quota system (capped at 96,600 tonnes for 2026), Kinshasa successfully pushed prices from $21,000 in early 2025 to over $56,000 as of April 2026.
Alternative Scenario: Authorities estimate that without these regulatory interventions, revenues would have been limited to approximately $617 million.

Friction with Chinese Operators

The administration is navigating complex relationships with Chinese mining companies, which currently dominate much of the DRC’s mineral extraction.

Quota Resistance: Major Chinese firms, notably CMOC Group, have vocally opposed the 2026 quotas, arguing they are too restrictive compared to their production capacity.
Processing Ultimatum: The Ministry of Mines is leveraging these quotas to force Chinese operators into local processing agreements, aiming to shift the country away from being a mere raw material exporter.
Audit of Legacy Deals: In March 2026, the government launched a comprehensive technical and financial audit of the Sicomines “infrastructure-for-minerals” deal to ensure compliance and fair returns.

Administrative and Geopolitical Hurdles

Domestic and international pressures continue to complicate the regulatory rollout:

Bureaucratic Reluctance: Delays in implementing new export procedures at the end of 2025 caused bottlenecks at key transit points like the Kasumbalesa border post, forcing the government to refine its administrative arrangements.
The “U.S. Pivot”: Under a strategic partnership signed in late 2025, the U.S. is pushing for access to critical minerals to counter Chinese dominance. This includes a 44-project shortlist handed to Washington in February 2026, creating additional geopolitical friction.
New Enforcement Measures: To counter administrative weakness, the state recently partnered with Quantum to establish a “tax brigade” for better oversight of mining operators.

#China’s #RareEarth Policy: Driving Innovation and Competitiveness

Posted on January 12, 2026 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

A colorful assortment of various geometric and crystalline shapes representing critical minerals, displayed against a blurred laboratory background. The image also features the flag of China and text in Chinese and English labeling the minerals.

Policy Framework Supporting Innovation Ecosystem

The Chinese State Council’s “Rare Earth Industry Development Plan (2021-2025)” establishes coordinated targets that explicitly connect mining output with downstream technology milestones. This policy framework differs from market-driven approaches where private investment decisions occur independently of government industrial planning.

Key coordination mechanisms include:

Research funding allocation aligned with five-year industrial development priorities
State-owned enterprise operations integrated with private sector innovation incentives
Regulatory environments designed to support domestic technology development clusters
University-industry partnerships with explicit commercialization mandates

Government research institutes, including Chinese Academy of Sciences divisions focused on materials science, receive dedicated funding for rare earth materials research aligned with broader industrial objectives. This creates predictable resource flows for long-term research projects while ensuring alignment between fundamental research and commercial applications.

The integration extends to environmental and regulatory considerations. Chinese facilities operate under different environmental compliance requirements compared to Western competitors, enabling cost structures that support both current operations and reinvestment in technology development. Additionally, these operations increasingly benefit from decarbonization benefits that enhance long-term competitiveness. This regulatory environment, combined with established supply chains and vertical integration advantages, creates compound benefits for innovation funding.

How Does China’s Patent Strategy Create Competitive Moats in Critical Technologies?

Intellectual Property Accumulation in Emerging Materials

China’s patent filing activity in rare earth materials significantly exceeds Western competitors, with China accounting for approximately 40-50% of global rare earth materials patents and higher percentages in emerging technology areas including nanomaterials and energy storage applications, according to World Intellectual Property Organization data from 2023.

Patent applications in rare earth nanomaterials and energy storage categories have grown at approximately 15-20% year-over-year in China between 2018-2023, while Western filing rates in equivalent categories have remained relatively flat or declined. This divergence reflects different strategic approaches to materials innovation and intellectual property development.

Focus areas for Chinese patent activity include:

Energy storage nanomaterials with enhanced conductivity and thermal stability
Magnetic separation processes optimizing cost structures and efficiency
Luminescent compounds for specialized optical and sensor applications
Advanced alloy compositions targeting aerospace and electronics sectors

Consequently, organizations must develop comprehensive IP protection strategies to safeguard their technological advantages in this competitive landscape.

Research Institution Networks and Knowledge Transfer

Chinese university-industry collaboration operates under different structural incentives compared to Western academic systems. Chinese institutions receive explicit mandates to commercialize research findings, supported by government incentive structures that reward technology transfer activities. This contrasts with Western university systems where commercialization typically occurs post-publication through licensing offices, creating longer development timelines.

#Nigeria to open two #Chinese-backed #Lithium processing plants this year

Posted on May 26, 2025 by Nanthakumar Victor Emmanuel, P.Eng One comment

Note: Canada is a resource-rich country. Canada does not have to go to another continent for critical mineral. Canada needs investment and technology development (refining and recycling). Bring the investment to Canada.

LAGOS, May 26 (Reuters) – Nigeria is set to commission two major lithium processing plants this year, the country’s mining minister announced on Sunday, marking a shift from raw mineral exports towards adding value domestically.

The facilities, largely funded by Chinese investors, could help transform Nigeria’s vast mineral wealth into jobs, technology, and manufacturing growth within the country. Mining Minister Dele Alake said a $600 million lithium processing plant near the Kaduna-Niger border is slated for commissioning this quarter, while a $200 million lithium refinery on the outskirts of Abuja is nearing completion. Two additional processing plants are expected in Nasarawa state, which borders the capital Abuja, before the third quarter of 2025, the minister said. “We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing,” Alake said. Over 80% of the funding for the four facilities has been provided by Chinese firms, including Jiuling Lithium Mining Company and Canmax Technologies, according to separate announcements by governors of the states where the plants are located.

Yes, Canada is considered a resource-rich country. It has abundant natural resources, including:

Energy Resources:
- Oil and Natural Gas: Canada has some of the largest reserves of oil in the world, particularly in the oil sands of Alberta. It is a major exporter of oil and natural gas, especially to the United States.
- Hydroelectric Power: Canada is a leader in hydroelectricity production, with large dams and water resources, especially in provinces like Quebec and British Columbia.
Minerals and Metals:
- Gold, Silver, and Platinum: Canada has significant reserves of precious metals, making it one of the largest producers of gold and other precious metals.
- Nickel, Copper, and Zinc: The country is a leading producer of these metals, which are essential for various industries, including manufacturing and electronics.
- Uranium: Canada is one of the world’s top producers of uranium, used in nuclear power generation.
Forests:
- Canada has vast forest resources, making it one of the largest producers of timber and paper products. The forest industry is especially important in provinces like British Columbia and Quebec.
Agricultural Resources:
- Canada is a major producer of wheat, canola, and other crops. It also has extensive livestock farming, including cattle and poultry.
Freshwater:
- Canada holds around 20% of the world’s freshwater supply, making it an important resource for both domestic use and potential global trade.

These resources contribute significantly to Canada’s economy, especially through exports, and help maintain its position as one of the world’s wealthiest nations in terms of natural wealth

Metals

#DOE Announces $2.26 Billion Loan to #Lithium Americas Corp.

Posted on October 29, 2024 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), today announced the closing of a $2.26 billion loan to Lithium Americas Corp’s subsidiary, Lithium Nevada Corp. (including $1.97 billion of principal and $289.7 million of capitalized interest), to help finance the construction of facilities for processing lithium at Thacker Pass in Humboldt County, Nevada.

The project is located next to a mine site that contains the largest confirmed lithium resource in North America. Once fully operational, the facilities are expected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate—supporting good-paying, high-quality jobs while helping ensure the United States can meet anticipated skyrocketing demand for the critical minerals necessary for the clean energy future. Today’s announcement reinforces the Biden-Harris Administration’s whole-of-government approach to building America’s clean transportation future, boosting America’s global manufacturing competitiveness, and securing reliable domestic critical minerals supply chains.