KAELO
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Industries

Mining & Metals

Critical minerals, precious metals, and the geopolitical contest for the resources essential to electrification, defence, and sovereign industrial strategy.

Concentration Risk
DRC Cobalt 73%
China Rare Earth Processing 90%
South Africa PGMs 70%
Indonesia Nickel 48%

The Structural Inflection

The IEA estimates net-zero by 2050 requires a sixfold increase in mineral inputs. The tension: resource nationalism collides with the $100 billion+ annual upstream investment required. Average time from mineral discovery to first production now exceeds 16 years — fundamentally incompatible with energy transition demand urgency. ESG mandates compress the universe of financeable projects: tailings dam failures, scope 3 disclosure, water stewardship in arid jurisdictions have transformed the permitting landscape.

BHP pivots from petroleum toward potash and copper. Rio Tinto pursues lithium. Glencore retains coal as a transition cash engine. Mid-tier and junior miners face an acute funding gap. Sovereign wealth funds deploying patient, flexible capital occupy a privileged position in a sector starved of appropriately structured investment.

Placeholder — Mining / geological image

Precious Metals

Gold: The Sovereign Reserve

Sustained above $2,400/oz. Central bank net purchases exceed 1,000 tonnes annually for the third consecutive year — pace not seen since Bretton Woods. Led by PBOC, RBI, and Gulf/Central Asian monetary authorities. Strategic reallocation away from US Treasury exposure post-2022 sanctions. Marginal production cost for Tier 1 assets: $1,200-1,400/oz, implying robust free cash flow across Newmont, Barrick, Agnico Eagle.

PGMs & Diamonds

Platinum caught between declining ICE catalyst demand and nascent hydrogen economy (PEM electrolyser catalyst). South Africa 70%+ of global PGM supply — concentrated sovereign risk compounded by Eskom unreliability. Lab-grown diamonds now ~20% of gem-quality volume, forcing De Beers from scarcity to provenance. Artisanal mining formalisation represents both development imperative and investment opportunity — 20-25% of global diamond and gold production.

Supply Deficit

Copper: The New Oil

3.6t Copper per MW of wind
2.5-4x EV copper vs ICE
5-8Mt Projected deficit through 2030

Goldman Sachs and Wood Mackenzie project 5-8 million tonne cumulative supply deficit through 2030 without significant new mine development. Chile Codelco contends with declining ore grades, rising Atacama water costs, and constrained state balance sheet. Peru political instability chills Las Bambas investment. DRC Kamoa-Kakula (Ivanhoe Mines) offers geological superlatives but jurisdictional risk premiums that exclude many institutional mandates.

Iron ore oligopoly (Vale, BHP, Rio Tinto, Fortescue) faces Chinese demand plateau but India urbanisation, MENA megaprojects, and SE Asian industrialisation generate incremental demand. EU CBAM prices carbon intensity differentials in aluminium, creating structural advantages for hydropower-smelted production from Canada, Norway, and the Middle East.

Nickel in turmoil from Indonesia rapid NPI/MHP expansion depressing prices — but ESG concerns around coal-fired RKEF smelting in Sulawesi affect European and North American battery offtake. The market bifurcates between Class 1 (battery-grade) and Class 2 (stainless steel) with profound implications for investors evaluating nickel as an energy transition play vs industrial metal.

Rare Earth & Critical Minerals

China 87-92% of global rare earth refined output. Export controls on gallium, germanium, graphite, and antimony demonstrate willingness to weaponise mineral supply chains. US IRA, EU CRM Act, Japan economic security legislation represent hundreds of billions in incentivised reshoring — but building a separation facility requires 7-10 years and radioactive thorium management most jurisdictions cannot handle.

AssetStatusSignificance
MP Materials Mountain PassOperatingOnly active US rare earth mine. Downstream still ramping.
Lynas Mt Weld / PahangOperatingLargest non-Chinese producer. Periodic Malaysian licence threats.
Chile Lithium Nationalisation2023 reformState participation in all new concessions via Codelco/ENAMI.
Lobito Corridor (DRC)Under constructionUS DFC-backed rail providing non-Chinese cobalt export route.

No single jurisdiction, mineral, or processing pathway offers security of supply. The winning strategy combines direct project equity, strategic offtake agreements, technology investments in alternative chemistries (sodium-ion, iron-air, solid-state), and policy engagement to shape regulatory frameworks that determine which supply chains are bankable and which are stranded.

"In a world where access to critical minerals is becoming as strategically important as access to hydrocarbons was in the twentieth century, we position clients not merely to invest in the transition but to shape it."
Our Position

Our advisory spans upstream asset evaluation, JV frameworks, offtake structuring, and ESG-compliant supply chain architecture across Africa, the Middle East, Central Asia, and Latin America. Whether the mandate involves evaluating a copper development-stage asset in the Copperbelt, structuring a lithium royalty in the Southern Cone, or conducting due diligence on a rare earth processing facility in Southeast Asia, we bring the technical depth, political intelligence, and capital markets fluency that this sector's complexity demands.

Shape the resource transition

Asset evaluation, offtake structuring, sovereign resource advisory.

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