Volatile commodity markets unsettled by fast-moving technologies and geopolitical instability are demanding that new mineral projects adopt a flexible approach based on high-quality technical studies.
“Mining is an industry accustomed to swings in commodity prices, but the pace of these changes has certainly quickened,” said SRK Consulting director and principal consultant Andrew van Zyl. “This complicates planning and means that developers can be even less certain of their project’s economic viability.”
While there is no silver bullet in this predicament, it does mean that flexibility becomes a key consideration in project design – as it can allow for quicker adjustment to changing market conditions.
Market prices for battery minerals, in particular, would be difficult to predict, said Van Zyl, as there was still stiff competition among battery technologies – which were constantly evolving. With all this uncertainty, it was vital for mining companies to ensure their projects balanced their position on the cost curve, he said, with a level of flexibility that was appropriate.
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