Critical Minerals
- Mining
- Critical Minerals
Driving the energy transition and realising net zero with critical minerals
Investor appetite for lithium, rare earths, copper, cobalt, nickel and other critical minerals continues to grow as Australia's, and the world's, energy transition and move to net zero accelerate. Demand resulting from the widespread adoption of technology such as smartphones and electric vehicles, and increased reliance on wind turbines and solar power, means the global race for these scarce critical minerals is set to intensify within a relatively short timeframe.
Australia has the world’s largest supply of four future minerals: nickel, rutile, tantalum and zircon. We’re also in the top five countries for the supply of cobalt, lithium, copper, antimony, niobium and vanadium. According to the Sustainable Minerals Institute, the current value of rare earths produced in Australia is already at $400 million and is expected to rival the value of more traditional deposits that are in the billions of dollars.
The race to secure critical minerals will continue to shape the global economy and international relations. And as the need for critical minerals becomes ever greater, the countries that produce them must balance their economic interests with environmental and ethical considerations, to ensure a sustainable and secure supply chain.
How we can help
To be poised for success, critical minerals producers and investors need clear visibility of future mineral demand drivers and the regulatory frameworks in which they will be operating. We partner with you to mitigate the risk and maximise the opportunities.
Allens has worked with critical minerals producers through the ups and downs of a highly competitive and regulated environment. We understand what an ethical and environmentally responsible producer of critical minerals needs to do to ensure it is meeting ESG commitments and expectations. We also have experience with every aspect of the mining life cycle, including commodity offtake arrangements, financing, tax, project and investment structuring, mergers and acquisitions, procurement and construction, environment, human rights including modern slavery and forced labour and native title and heritage, employment and safety, regulatory approvals, real estate and foreign investment regulation (including FIRB), and have been involved in some of the largest and most significant projects and transactions in the mining industry.
We're here to help a new generation of critical minerals producers, suppliers and investors leverage our experience gained from some of the industry's emerging and established players to support their mining projects and transactions as part of the energy transition and race to net zero emissions.
We're with you at every stage of the mineral production lifecycle
Entry, exploration and establishment
On the ground from day one
Having been involved in some of the most significant mining projects across Australia, Africa and Asia, you benefit from our unparalleled understanding, and track record in providing advice during the exploration and establishment of mining operations.
From project acquisition, structuring and tax, to joint ventures, shareholder arrangements, access, ESG and remote communities considerations, we know what you need to do to bring your mineral production project to life.
Feasibility and financing
Funding for the future
Feasibility is a key consideration for mineral producers seeking funding and financial backers. The are many factors that could delay or break your deals, and strategies to implement to not only avoid them but to maximise return.
From ensuring your mining project is structured to enable project financing from day one, raising equity on the capital markets, offtake and construction to navigating the complex regulatory regimes that make projects bankable, our multi-disciplinary teams work hand in hand to ensure that mining projects are successful
Development and construction
Bringing mineral production to life
Get your mineral production projects off the ground by leveraging experience gained from working with the world's largest mining companies.
Maximise R&D and government incentives whilst protecting your intellectual property from competitors. Read our fact sheet for further information.
Operation and production
The fruits of production
Much can happen during the operation and production stage for any mining project. Ensuring you're covered in every aspect, from arranging procurement arrangements, to implementing environmental management obligations. Protect your business from potential issues such as disputes, regulatory changes and cyber security risks. And in the event, be prepared with the very best incident response procedures and crisis management strategies.
Closure, exit or expansion
With you all the way
Navigating the complex commercial and legal challenges involved in the closure and rehabilitation of a site can be challenging. We'll help fulfil your obligations to governments and local communities, as well as meeting and exceeding your ESG commitments.
Experience
Liontown's Kathleen Valley Lithium Project
Advised Liontown Resources on all aspects of its Kathleen Valley Lithium Project in Western Australia, including on its A$463 million capital raising, procurement construction and foundation offtake agreements with LG Energy, Tesla and Ford, and the establishment of a A$300 million funding facility to underpin development of the Project.
Iluka Resources risk sharing arrangement
Advised Iluka Resources on its risk sharing arrangement under the Australian Government's $2 billion Critical Minerals Facility comprising a $1.05 billion non-recourse loan to fund the construction and commissioning of the Eneabba Rare Earths Refinery, plus a further $200 million cost overrun facility if required.
Core Lithium equity raising
Advised Core Lithium across all aspects of its proposed lithium mine and associated development, including on its $150m equity raising that comprised a $91m private placement, $34m equity investment in connection with an offtake agreement and a $25m non-underwritten share purchase plan, offtake arrangements for the supply of lithium (including with Tesla and LG) and procurement and financing strategy as well as documentation.
Wesfarmers acquisition of Kidman Resources
Advised Wesfarmers on all aspects of its $776 million acquisition of Kidman Resources by way of scheme of arrangement and associated Mt Holland Lithium Project joint venture arrangements with joint venture with SQM.
Iluka mineral sands and rare earths projects
Advised Iluka Resources on its Sierra Rutile project in Sierra Leone and Cataby and Eneabba mineral sands and rare earths projects in Western Australia, including offtake and associated logistics arrangements, and mineral sands and rare earths interests and assets in Western Australia, Sri Lanka and Kazakhstan.
Tianqi Lithium JV with Rockwood
Advised Tianqi Lithium - on the US$1 billion incorporated JV with Rockwood, under which Rockwood acquired a 49% ownership interest in Talison Lithium, and associated lithium offtake, distribution and logistics arrangements, and the sponsors for Tianqi's US$1.7 billion Hong Kong IPO.
Sinomine
Advised Sinomine on its share placement in ASX-listed Prospect Resources Limited and associated pre-pay offtake arrangements under which Sinomine was to purchase approximately US$557m of spodumene and petalite from Prospect Resources' Arcadia Lithium Project in Zimbabwe.