Mining Engineering’s Weekly Rundown: Episode 74

First, EnergyX has signed a $2 billion binding agreement to supply commodities trader Trafigura with lithium from planned projects in Chile and the United States. The 10-year take-or-pay contract covers 100,000 metric tons of lithium, with Trafigura purchasing 5,000 metric tons annually of lithium hydroxide and 5,000 metric tons of lithium carbonate. The agreement’s value is based on lithium prices near $20,000 per metric ton. EnergyX plans to begin lithium carbonate production in Chile in 2028 and lithium hydroxide production in Texas in 2029. Trafigura’s purchases would account for about two-thirds of EnergyX’s planned Chilean output and one-third of its initial Texas production. The agreement also supports EnergyX’s application for a $690 million loan from the U.S. Export-Import Bank. The deal comes as demand from stationary battery storage helps offset uneven electric vehicle sales, while companies work to develop new lithium supply through direct lithium extraction technology.

Next, President Donald Trump said the U.S. was preparing to begin large-scale oil, gas and mineral exploration in Greenland, prompting Denmark to reiterate that any resource development must comply with Greenlandic law. Denmark’s foreign ministry said a September agreement between the U.S., Denmark and Greenland did not grant American investors preferential access to the island’s natural resources. The agreement focused on expanding the US military presence and missile defense capabilities in the Arctic, while reaffirming Danish sovereignty and Greenlanders’ right to self-determination. It did not grant mining or drilling rights. Greenland banned new oil exploration and uranium mining in 2021, although its government is reviewing whether a Texas-based company can use permits issued before the restrictions took effect. Trump has repeatedly expressed interest in acquiring control of the strategically located, mineral-rich territory. His latest comments raise questions about whether the security agreement will lead to any changes in access to Greenland’s resources. For mining companies, any development will depend on the island’s existing laws and permitting requirements.

Finally, President Donald Trump’s threat to impose tariffs on copper imports has helped build U.S. stockpiles to more than 1 million metric tons, but the incentive to ship additional metal into the country is weakening as traders await a decision on the proposed levies. The U.S. now holds roughly 70 percent of the world’s visible copper inventories, contributing to tighter supplies elsewhere and higher prices despite a global surplus. Traders accelerated shipments after Trump ordered a study of potential copper tariffs in February 2025, pushing Comex prices to a record $15,057 per metric ton in September. The price gap between U.S. and London Metal Exchange copper has since narrowed to about $310 per ton, reducing the profitability of shipments. The U.S. Commerce Department was expected to report on the domestic copper market by June 30, ahead of a potential 15 percent tariff on refined copper imports starting in January 2027 and rising to 30 percent in 2028. No decision has been announced.

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