General Discussions, page-33593

Gotta say the whole offtake/funding situation in the West's critical minerals sector is a joke.
Offtake partners are usually larger, well established chemical processors or automakers with big balance sheets, but conversely IMO look to have a short term outlook.
Lowball offers from such parties are just stupid, as what happens when their minerals supplier stops production because their negotiated price doesn't allow them to turn a (modest) profit throughout the cycle.
The chem processors and automakers expect to make themselves profits year in, year out right?
So it shouldn't matter when in the particular commodity's price cycle negotiations occur. It's a cycle. Everyone knows this. Negotiate a floating price that sets a break even floor and share profits at the top of the cycle.
Otherwise you'd only have mining juniors knocking on doors at high times and processors/automakers at low points.
Given lead times to actually build a mine and processing plant, where do they think their supplies are going to magically materialise from?
The big boys and girls need to get realistic and support their suppliers. That's what ESG is all about isn't it, building a sustainable business model.
From what I can see though, ESG in the space is just a mirage which the majors are playing loose and fast with.
To be fair, until consumers also let ESG influence/direct their decisions, instead of price focus, and bugger where it comes from, how it is made, what is its footprint etc, responsible minerals producers are in a tight spot.
Don't get me started on the government, other than to mention the National Reconstruction Fund, with $15B in its coffers.
Inception was way back in Oct 2022, first money out the door took them over two years (Nov24), and to date just over $150M has been invested, FFS. Where's the urgency as China forges further ahead? Get a bloody move on!
Watch out Detroit...