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Australia updates their Critical Minerals List and Adds a second, introducing the Australian Strategic Materials List

The Albanese Government of Australia has recently undertaken a notable revision of its critical minerals policies, underscoring the nation’s focus on energy, job creation, and national defense. These revisions include updating the Critical Minerals List and introducing a new Strategic Materials List, an integral part of a larger strategy to establish Strategic Critical Minerals Hubs across the country.

Significant changes to the Critical Minerals List have been made, notably adding fluorine, molybdenum, arsenic, selenium, and tellurium, while removing helium. This update brings Australia’s list into closer alignment with those of its international strategic partners. These minerals play a vital role in the energy transition and are heavily utilized in the defense and technology sectors.

Alastair Neill, Director of the Critical Minerals Institute (CMI), offered an expert perspective on these additions. He remarked, “It was interesting to see some of the additions. Arsenic is involved pretty well in Europe and the US, but again China, has 40% of the world’s production, I think the next largest is Peru. So there is lots of arsenic in North America. But just because of the environmental hoops that you have to go through to deal with that I think has prevented sort of domestic production. They also added molybdenum, which is an interesting choice, and tellurium, and selenium, which are very small markets by themselves.” Neill’s insights highlight the strategic considerations and complexities in the global supply chain of these minerals.

Additionally, the new Strategic Materials List complements the Critical Minerals List by identifying essential commodities for the energy transition that are not at risk of supply chain disruptions. This list includes copper, nickel, aluminum, phosphorous, tin, and zinc, notable for their established industries and stable supply chains.

A key component of this initiative is the feasibility study for Strategic Critical Minerals Hubs, aimed at identifying potential locations for critical minerals infrastructure precincts, especially for commodities that might face supply chain disruptions. This study is informed by the Government’s Critical Minerals Strategy and input from industry and state and territory resources ministers.

Minister for Resources and Northern Australia, Madeleine King, has emphasized that these changes are the culmination of extensive consultations with industry, the public, and state and territory governments. The updates are poised to enhance Australia’s stature as a significant exporter of clean energy materials, reflecting the critical role of these minerals in the greening of Australia’s economy and its national defense.

The Critical Minerals List and the Strategic Materials List will be updated regularly to reflect changing economic and geostrategic dynamics. The inclusion of minerals like copper, nickel, aluminum, phosphorous, tin, and zinc on the Strategic Materials List highlights their economic and strategic importance, especially in light of the global energy transition.

The Australian Government maintains both the Critical Minerals List and the Strategic Materials List to identify minerals crucial for the nation’s modern technologies, economy, and national security. These lists are subject to review at least every three years and may be adjusted in response to global strategic, technological, economic, and policy changes. The Critical Minerals List comprises minerals essential for modern technologies and national security, while the Strategic Materials List includes those important for the global transition to net zero and other strategic applications, but with currently stable supply chains. The government’s ongoing support for the extraction and processing of these minerals is a critical aspect of monitoring their market developments.




CMI Masterclass: Securing North America’s Future, A Conversation on the Critical Minerals Supply Chains with Jack Lifton

In an insightful interview conducted by Brandon Colwell, the Director and Government Relations Liaison for the Critical Minerals Institute (CMI), with CMI Co-Chairman Jack Lifton, the focus is on the burgeoning challenges and strategic responses related to critical mineral supply chains in North America, especially in the context of China’s dominance. Jack, a veteran in the field with over 60 years of experience, points out the significant gap in subject matter expertise within the governments of the United States and Canada. This gap, he argues, hinders the effective development and implementation of policies in the mineral sector. He emphasizes the complex and time-consuming process of converting a mineral discovery into an economically viable mining project, underscoring the need for more informed and strategic decision-making in governmental investments and policy development in this domain.

Jack also delves into the recent fiscal commitments by the U.S. and Canadian governments towards critical minerals and battery manufacturing, expressing skepticism about their impact due to the governments’ limited understanding of the industry. He advocates for the inclusion of industry specialists in policy-making processes, especially in evaluating and financing mining projects. Jack raises concerns about the potential misallocation of government funds, stressing the importance of directing these investments towards those with genuine expertise and experience in the industry.

Lastly, Jack addresses the specific challenges within the critical mineral supply chain, particularly highlighting the processing segment as the most critical and challenging area. He notes the decline in North American capabilities in this area due to historical outsourcing and a lack of sustained investment in processing technologies. Jack contrasts this with China’s significant progress and dominance in processing technologies, presenting a significant challenge for North America in its bid to rebuild a competitive and independent critical mineral industry. He underscores the need for substantial investment in education and the development of expertise in process engineering and metallurgy. In conclusion, Jack discusses the broader implications for industries dependent on these minerals, such as the automotive industry, and the potential impact of government policies and market dynamics on these sectors.

To access the complete video, click here

For more information on the Critical Minerals Institute or becoming a CMI Member, click here




CMI Masterclass: Flow Through and Critical Minerals

The recent Critical Minerals Institute (CMI) Masterclass, hosted by Tracy Weslosky, featured an in-depth discussion on the intricacies and opportunities of flow-through financing, particularly in the context of critical minerals. The panel included Peter Nicholson from Wealth Group (WCPD Inc.), Jean-Philippe (J.P.) Côté from Fasken, and Peter Clausi from Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) and CBLT Inc. (TSXV: CBLT), who provided valuable insights into this complex financing model.

Peter Nicholson elaborated on the evolution of the charitable flow-through model in financing, a model that has grown significantly since 2006. He emphasized its benefits in mitigating risks and offering tax advantages, particularly for high net worth individuals. He emphasized how the charitable flow-through model has grown to dominate the market, explaining its resilience during financial downturns and its importance in the current market.

Peter Clausi clarified the terminology and functioning of flow-through shares. These shares are designed as a tax benefit, enabling losses from mining exploration to be passed to investors. He underscored that these are a creation of the Income Tax Act, not affecting corporate or stock exchange structures.

J.P. Côté discussed the tax benefits associated with investing in companies exploring critical minerals, such as uranium. He highlighted the changes in tax credits, especially for critical minerals, and the implications of these incentives for exploration companies.

The panel also delved into the role of liquidity providers in the flow-through model, discussing the current market trends. They explored the challenges and opportunities for both investors and companies, especially considering recent markets and the growing focus on critical minerals.

There was a discussion on the increasing global interest in critical minerals, emphasizing the potential for institutional investors to play a more active role in this sector. The panelists also discussed the necessity for better understanding and utilization of flow-through financing among these investors.

From a legal and regulatory standpoint, J.P. Côté and Peter Clausi offered insights into the complexities of flow-through financing. They discussed the nuances of qualifying for critical minerals and the potential for future legislative adjustments in this area.

For investors looking to leverage flow-through financing in critical minerals, the session provided strategic advice. This included guidance on how to approach brokers and identify promising investment opportunities in this sector.

The discussion concluded with thoughts on the future of flow-through financing. The panelists pondered its trajectory, especially considering political and economic changes, and the possibility of including sectors like renewable energy in this financing model.

To access the complete video, click here

For more information on the Critical Minerals Institute or becoming a CMI Member, click here




Navigating the Future of Critical Minerals: Ford’s Battery Plant Downscale and Canada’s $1.5 Billion Push

The automotive and energy sectors are witnessing significant shifts as companies and governments navigate the evolving landscape of electric vehicles (EVs) and sustainable energy. Two recent developments highlight these changes: Ford Motor Company’s scaling back of its Michigan battery plant and the Canadian government’s launch of a $1.5 billion Critical Minerals Infrastructure Fund.

Ford’s Revised EV Strategy Amid Market Realities

Ford Motor Company’s (NYSE: F) decision to scale back its $3.5 billion battery plant in Michigan, reducing its production capacity by 43% and cutting jobs, reflects the challenges facing the EV market. Despite the initial excitement and investment in EVs, consumer adoption has been slower than expected, and labor costs are rising.

Political and Economic Implications

Ford’s partnership with Chinese manufacturer CATL has stirred political debates, especially in the context of US-China relations. This move, along with broader market dynamics, signifies the complex interplay of economics, politics, and technological advancements in the EV sector.

Canada’s Strategic Move in Critical Minerals

Concurrently, Canada is stepping up its game in the critical minerals sector, crucial for clean technologies like EV batteries. The $1.5 billion Critical Minerals Infrastructure Fund, announced by Natural Resources Canada, aims to fill infrastructure gaps and promote sustainable mineral production.

A Synergistic Approach to Sustainable Development

Canada’s fund is not just an economic investment but also a strategic move to position the country as a key player in the global shift towards a net-zero-emissions future. This initiative complements efforts like Ford’s, focusing on the development of clean technologies and the reduction of carbon footprints.

The Road Ahead for Ford and Global EV Market

Ford remains committed to its EV strategy, planning to open its revised battery plant in 2026. This plant will be crucial in producing lithium iron phosphate (LFP) batteries, a cheaper alternative to traditional lithium-ion batteries, possibly giving Ford a competitive edge in the market.

Canada’s Vision for Clean Energy and Economic Growth

Canada’s investment in critical minerals infrastructure is a forward-looking approach to enhancing its role in the global supply chain for clean technologies. The focus on sustainable extraction, processing, and recycling of minerals aligns with the global agenda for a net-zero-emissions economy.

Conclusion: A Convergence of Efforts

The juxtaposition of Ford’s scaled-back plans and Canada’s aggressive investment in critical minerals infrastructure paints a picture of a world in transition. While challenges like market dynamics and political considerations shape corporate strategies, national initiatives aim to bolster the infrastructure and supply chains necessary for a sustainable future. Both Ford’s recalibration and Canada’s proactive steps are pivotal in driving the automotive and energy sectors towards a more sustainable and economically viable future.




Bridging the Gap: The Role of Hybrids in the Transition to Electric Vehicles

In the evolving landscape of sustainable transportation, the debate between fully electric vehicles (BEVs) and plug-in hybrids (PHEVs) is intensifying. While BEVs are gaining momentum, hybrids are often viewed as a transitional technology, offering a bridge as we shift towards a more electric future.

The Dominance of BEVs and the Role of Hybrids
In the United States, Tesla’s dominance in the electric vehicle market, with over a 50% share, underscores the nation’s tilt towards BEVs. Tesla’s exclusive focus on fully electric models is a key reason for this trend. Contrastingly, in China, BYD’s balanced sales of 50% BEVs and 50% hybrids depict a more diversified approach towards electrification.

Advantages of Hybrids
Hybrids bring several benefits to the table, particularly in the context of reducing the demand on critical minerals. They utilize smaller batteries compared to BEVs, leading to less mineral consumption. For instance, one EV typically uses a battery three to five times larger than a hybrid.

Additionally, hybrids offer practical advantages in terms of range and refueling. They align well with North America’s vast distances and the current fuel infrastructure, eliminating the need for significant additional investments. Moreover, they present a more immediate solution to the limitations of the existing power grids in residential areas, particularly those established decades ago, which might not be equipped to handle a surge in electricity demand due to widespread adoption of BEVs.

Economic and Environmental Considerations
From an economic standpoint, hybrids can be cost-effective. Anecdotal evidence suggests significant savings in fuel costs. For example, covering 1,500 kilometers in a hybrid might only cost about $60, split evenly between gas and electricity.

Environmentally, however, the impact is nuanced. Transportation accounts for approximately 14% of total greenhouse gas emissions. Complete transition to BEVs might not significantly alter the emission landscape, especially if the electricity required is generated from coal. Hybrids offer a middle ground, reducing emissions while not overburdening the electricity supply chain.

Government Policies and Future Implications

Globally, governments are increasingly leaning towards BEVs in their quest to reduce emissions, often overlooking the potential role of hybrids in this transition. This preference may be driven by long-term environmental goals, but it also risks overlooking the immediate benefits and feasibility of hybrids.

Conclusion
In conclusion, while the future seems electric with a growing preference for BEVs, hybrids should not be disregarded. They serve as an effective bridge technology, offering immediate benefits in terms of mineral usage, infrastructure compatibility, and economic feasibility. As the world navigates towards a greener future, a balanced approach incorporating both BEVs and hybrids might be the key to a more sustainable and practical transition in transportation. From a consumer point of view CMI Director Matt Bohlsen adds: “While hybrids make sense to lesson battery materials demand, consumers should ask do they want the burden of paying servicing costs for an ICE engine and all the systems that go with it? I would argue pure BEVs make the most sense, unless you need to drive very large distances each day or have issues accessing charging networks.”


*CMI Director Matt Bohlsen reflects on the evolving dynamics in the electric vehicle industry and the role of hybrids as a bridge technology. CMI Director Alastair Neill’s insights contribute to this comprehensive analysis.




Critical Minerals Institute Announces Masterclass on Navigating the Critical Minerals and Flow-Through Landscape

Toronto, November 15, 2023 – The Critical Minerals Institute (CMI), an international organization dedicated to advancing the critical minerals sector, is pleased to announce an upcoming Masterclass titled Navigating the Critical Minerals and Flow-Through Landscape. This virtual event, focusing on the exploration of critical minerals and the innovative charitable flow-through model, promises to be an enlightening experience for professionals and enthusiasts alike.

Date: Monday, November 20th
Time: 7-8 PM EST
Format: Virtual Event, Click Here to Register

Guided by CMI Director Tracy Weslosky, this masterclass will bring together notable figures like Peter Nicholson from WEALTH, Jean-Philippe Côté from Fasken, and Peter Clausi, also a CMI Director. They will explore the latest trends, opportunities, and challenges in the critical minerals landscape.

Highlights of the session include:

  • An in-depth explanation of the charity flow-through model, detailing its structure and benefits under Canada’s Income Tax Act.
  • Discussion on the Critical Mineral Exploration Tax Credit (CMETC), a crucial development in Canada’s 2022 budget that enhances capital raising capabilities in the mining sector.
  • Insights into the role of critical minerals in modern technology and clean energy solutions.

This masterclass is an excellent opportunity to expand your knowledge, network with industry experts, and gain insights into the critical minerals sector and investment strategies.

About the Critical Minerals Institute, the CMI:

The Critical Mineral Institute (CMI) is an international organization for companies and professionals focused on battery materials, technology metals, defense metals, ESG technologies and practices, the general EV market, and the use of critical minerals for energy and alternative energy production. Offering an online site that features job opportunities that range from consulting roles to Advisory Board positions, the CMI offers a wide range of B2B service solutions. Also offering online and in-person events, the CMI is designed for education, collaboration, and to provide professional opportunities to meet the critical minerals supply chain challenges. 

Offering access to critical mineral experts, B2B resources, an industry newsletter and both online and in-person events. 

Click here to become a CMI Member

Registration:
For event registration, click here

Contact:
For further details, please contact Tracy Weslosky, Managing Director for the CMI, at [email protected] or +1 416 792 8228




Biden-Harris Administration’s $3.5 Billion Investment in U.S. Battery Manufacturing and Clean Energy Transition

On November 15, 2023, the Biden-Harris Administration announced a significant investment of $3.5 billion to enhance domestic battery manufacturing in the United States. This funding is a part of President Biden’s Investing in America agenda and is allocated from the Bipartisan Infrastructure Law. The U.S. Department of Energy (DOE) will oversee this investment, aimed at increasing the production of advanced batteries and related materials across the nation. The initiative is a key element in supporting the clean energy industries of the future, including renewable energy and electric vehicles.

The investment focuses on creating and retrofitting facilities for various components of battery production, such as battery-grade processed critical minerals, precursor materials, battery components, and cell and pack manufacturing. A significant aspect of this funding is its emphasis on job creation, specifically good-paying union jobs, and its contribution to the goal of achieving a net-zero emissions economy by 2050. Additionally, the investment aims to ensure that half of all new light-duty vehicle sales are electric vehicles by 2030 and to establish a robust domestic supply chain.

U.S. Secretary of Energy Jennifer M. Granholm highlighted the importance of this initiative in boosting global competitiveness, creating jobs, and strengthening the clean energy economy. The investment is seen as pivotal in positioning the United States as a leader in the advanced battery market, which is crucial for a range of applications including grid storage, home and business resilience, and transportation electrification. With the expected significant growth in the lithium battery market driven by the demand for electric vehicles (EVs) and stationary storage, the U.S. aims to accelerate the development of a resilient battery supply chain, including the exploration of non-lithium battery technologies.

This $3.5 billion funding is the second phase of a total $6 billion provided by the Bipartisan Infrastructure Law. The first phase saw the DOE awarding projects that catalyzed over $5.8 billion in combined public and private investment. The second phase continues this momentum by expanding domestic battery manufacturing and supply chains. Key objectives include enhancing the U.S. competitive stance in battery materials processing, advancing battery manufacturing capabilities, reducing dependency on foreign critical minerals and technologies, and supporting underserved communities through the Justice40 Initiative.

The funding opportunity is also set to prioritize next-generation technologies and battery chemistries beyond lithium-based technologies. It includes an emphasis on projects that increase the production of critical materials, expand production facilities for cathode and anode materials, and enhance battery component manufacturing. The DOE plans to update the focus areas of this program every six months to keep pace with market and technology developments, with concept papers due by January 9, 2024, and full applications by March 19, 2024.

Tracy Weslosky, Executive Director of the Critical Minerals Institute, often referred to as the CMI, stated that substantial funding is essential to develop competitive North American critical mineral operations that can match China’s pricing. However, she emphasized that finding professionals with the necessary skills, knowledge, and practical experience is even more crucial than the minerals themselves for establishing sustainable supply chains in North America. Weslosky also expressed eagerness for future updates on leadership and support strategies in this endeavor.

The Executive Director for Critical Metals PLC (LSE: CRTM) Russell Fryer adds: “The current dynamics of cobalt supply for battery production raise significant questions. Notably, sources such as Idaho and Canada are not major contributors in this realm. This situation underscores the need for a comprehensive understanding of global supply chains and their implications for sustainable and ethical resource procurement.”

The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is tasked with managing this initiative, aligning it with broader efforts to modernize national energy infrastructure and promote a clean and equitable energy transition.




Unlocking the Potential of Critical Minerals and Flow-Through Shares with Wealth Group’s Peter Nicholson

In the InvestorNews interview, the Critical Minerals Institute (CMI) President Brandon Colwell spoke with Peter Nicholson, Founder and President of Wealth Group (WCPD Inc.), about flow-through shares and the benefits of being a critical mineral company. Peter explained that flow-through shares have been part of Canada’s tax code since 1954 and are encouraged by the government as they support exploration and mining, crucial for transitioning to zero carbon. These shares allow investors to claim 100% tax deductions on their investments, supporting small exploration companies with high risk.

Nicholson distinguished four types of flow-through shares: CEE, CDE, super flow-through, and those related to critical minerals. CEE (Canadian Exploration Expenses) and CDE (Canadian Development Expenses) are ideal for corporations, providing tax deductions and credits. Super flow-through shares, introduced in 2001, offer a 15% federal credit and 100% tax deduction, exclusively for individuals. Critical mineral flow-through shares, focusing on minerals like copper, nickel, lithium, cobalt, and uranium, provide an additional 15% federal credit to foster investment in these crucial resources.

Provincial credits vary, with Quebec offering the most attractive incentives. Nicholson emphasized the increasing popularity and significance of critical mineral flow-through shares, highlighting their role in supporting environmental sustainability and a potential 20-year bull market in critical minerals.

To access the complete interview, click here

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About WCPD Inc.

Wealth Creation Preservation & Donation Inc.‘s (WCPD Inc) financial planning strategies help increase your personal wealth by tailoring financial solutions that fit the client’s personal circumstances. Their highly personalized boutique services offer unique financial solutions while working in tandem with larger financial institutions and industry partners. They do not sell products and advice based on sales targets and product launches.

In addition to Insurance Services, WCPD also offers access to some of Canada’s most exciting opportunities in the resources sector, including financings for this essential sector in our economy. In particular, WCPD is a proud supporter of critical minerals, which are crucial to green technologies of the future.

To learn more about WCPD Inc., click here.

Disclaimer: WCPD Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.




WCPD’s Peter Nicholson on Flow-Through and the Rising Demand for Critical Minerals

With tax season on the horizon, many investors find themselves grappling with their financial strategies, especially in the realm of flow-through and the burgeoning demand for critical minerals. In a recent InvestorNews interview hosted by Tracy Weslosky, the Founder and President of WCPD Inc., Peter Nicholson shared his expert insights on these pivotal topics.

Flow-through, a seasoned tax code since 1954, plays a significant role as the year draws to a close. Nicholson pointed out that the coming months are prime for securing tax deductions, given the vast financial activity underpinning ongoing drilling operations. He expressed an optimistic view, believing that the market might be on the cusp of a positive pivot. One area driving this sentiment? Critical minerals.

The global demand for critical minerals, such as lithium, uranium, cobalt, copper, zinc, rare earths, and nickel, is skyrocketing. Governments worldwide are rallying behind this sector, while the media underlines the urgency of multiplying our current mineral reserves by five or even ten times. The mismatch between soaring demand and the lagging supply signifies potential price surges in the offing.

Yet, amidst these economic intricacies, Nicholson brings to the fore an innovative approach – the charitable flow-through model. As the brainchild behind this model, he boasts a 17-year impeccable track record. At its core, the model embraces the inherent volatility of the flow-through space by aligning with institutional investors. By offering them a 15-20% discount, these investors buy shares almost instantaneously, guaranteeing liquidity and a promising ROI. The real kicker? Channel this to charity, and a donation of $10,000 might only set you back by $100. Conversely, without the charitable angle, investors can anticipate a net return of roughly 25% post-fees.

Given the abundance of flow-through opportunities, it’s easy for investors to feel swamped. Nicholson’s advice? Think of it as crafting a diversified portfolio. By synergizing with leaders in the mining sector and weighing investments across stocks, GICs, and bonds, investors can find balance and stability. Notably, timing is paramount; historically, the window from April to August has proven most auspicious for acquisitions.

In the ever-evolving landscape of flow-through and critical minerals, Peter Nicholson stands as a beacon of knowledge. For those eager to delve deeper, he will be hosting an upcoming master class on these topics under the aegis of the Critical Minerals Institute on Tuesday, November 9th at 7PM. We extend our thanks to Nicholson for his illuminating discourse, further cementing his stature as an industry maven.

To access the complete interview, click here

Don’t miss other InvestorNews interviews. Subscribe to the InvestorNews YouTube channel by clicking here

About WCPD Inc.

Wealth Creation Preservation & Donation Inc.‘s (WCPD Inc) financial planning strategies help increase your personal wealth by tailoring financial solutions that fit the client’s personal circumstances. Their highly personalized boutique services offer unique financial solutions while working in tandem with larger financial institutions and industry partners. They do not sell products and advice based on sales targets and product launches.

In addition to Insurance Services, WCPD also offers access to some of Canada’s most exciting opportunities in the resources sector, including financings for this essential sector in our economy.  In particular, WCPD is a proud supporter of critical minerals, which are crucial to green technologies of the future.

To learn more about WCPD Inc., click here.

Disclaimer: WCPD Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.




Navigating the Critical Mineral Investment Trail in the Congo: Experts Weigh in on the CMI Masterclass

U.S. apprehensions about China’s advances in the Congo underline its pivotal role in the critical minerals’ domain.

The Democratic Republic of Congo (DRC) has long been recognized for its vast mineral wealth. But with this abundance comes complexity. Recently, the Critical Minerals Institute (CMI) Masterclass series provided a deep dive into this rich, multifaceted topic, led by two individuals with considerable firsthand experience in the DRC: Melissa ‘Mel’ Sanderson, a Director for American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF), and Russell Fryer, CEO and Chairman of Critical Metals PLC (LSE: CRTM). Both Mel and Russell are members for the CMI Board, committed to education and B2B resources in the critical minerals sector.

Hosted by Tracy Weslosky, the Founder and Managing Director for the CMI, the discussion spanned topics from the geopolitical to the deeply personal, offering invaluable insights to potential investors and businesses eyeing the DRC.

Entering the Congo

Both Sanderson and Fryer have unique entry points into the DRC. Sanderson’s journey began with the U.S. diplomatic service in 2003, right after “Africa’s World War” ended. She joined Freeport-McMoRan Inc. (NYSE: FCX) in building one of the world’s largest copper-cobalt mines. Her combined diplomatic and business experiences make her insights particularly relevant.

Fryer, an engineer by profession, managed the metals and mining book for a hedge fund, leading him to be deeply involved with the DRC’s mining sector. He emphasized the importance of a strong on-ground presence to effectively operate in the region.

Navigating the Investment Landscape

When it comes to investing in the DRC, both experts stressed the significance of building robust government relations. Fryer emphasized the importance of forging connections at all levels of government. His hands-on approach, combined with regular liaison with international ambassadors, has served him well in navigating the intricacies of the region.

Sanderson highlighted the role of local culture and the importance of understanding key regulations like the Foreign Corrupt Practices Act. This understanding helps businesses operate ethically while also respecting local customs and norms.

The Unique Challenges of Doing Business in the Congo

The Congo presents a unique set of challenges for investors and businesses alike, the experts outlined how the terrain is fraught with hurdles from unreliable power, water quality, to workforce and transportation issues. Moreover, certain regions, such as Bondo, necessitate heightened security measures. Fryer underlines the urgency of addressing local community needs and creating a quick revenue stream for both operational success and local welfare.

Geopolitical Implications and the Congo

Weslosky delved into geopolitical investments in the DRC. With growing interest from the Middle East, China, and the U.S., the DRC is at the heart of intricate international dynamics. Fryer shared insights into the increasing influence of countries like Saudi Arabia, UAE, and Qatar in the DRC. Addressing these geopolitical complexities requires the Congolese government to skillfully navigate these multifaceted relationships.

Empowering the Locals

On the topic of developing local talent, both experts shared their belief in the potential of the Congolese people. Sanderson spoke about initiatives to bring talented Congolese to the US for training. Fryer highlighted the need for trust, understanding the culture, and providing real opportunities.

Closing Remarks

The Masterclass shed light on the myriad of opportunities and challenges the DRC presents. As businesses and investors continue to look towards this region, the insights shared by Sanderson and Fryer provide a valuable roadmap. As Weslosky rightly put it, it’s essential for those in the resource and investment sectors to familiarize themselves with the regions they invest in. The discussion underscored the importance of understanding, respect, and hands-on involvement when it comes to successful investment in the DRC.

For those interested in exploring further, the Critical Minerals Institute ot the CMI continues to offer invaluable resources and discussions in the critical minerals sector.

CMI Masterclass Key Points:

  1. Congo’s Importance:

    • The U.S. government is concerned about China’s potential acquisitions in the Congo.
    • Highlights the region’s significance in the critical minerals sector.

  2. Investment Advice:

    • Foster strong relationships at all levels of the Congolese government.
    • Understand and respect the local culture and language.
    • Comply with international regulations, especially the Foreign Corrupt Practices Act (FCPA).

  3. Geopolitical Investments:

    • Growing interest from Middle Eastern countries (e.g., Saudi Arabia, UAE, and Qatar) in the Congo.
    • The U.S. is perceived to hold significant influence in the region.
    • The Congolese government needs to navigate geopolitical complexities wisely.

  4. Business Environment in Congo:

    • Challenges include inconsistent power outside the Katanga province, water quality, transportation, and security.
    • Companies should anticipate delays and budget for higher costs due to unforeseen challenges.
    • Engage with local communities and prioritize security.

  5. Building Relationships in the DRC:

    • Collaborate with educational institutions, notably the University of Lum Bashi.
    • Embassies can play a role in introducing businesses to relevant government officials.

  6. African Free Continental Trade Agreement:

    • Provides numerous advantages, but may not directly influence political stability in Congo.
    • There’s a need to address power consistency, infrastructure, and local beneficiation of minerals on the continent.

  7. Empowering Local Talent:

    • Emphasized importance of training and acknowledging Congolese talent.
    • Foster local leadership for successful integration with foreign businesses.

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