<\/p>\n\n\n\n
The global mining industry has begun to feel the growing impact of the war in Iran and rising tensions across the Middle East. From Australia to Africa, supply chains for essential mining inputs are being disrupted, increasing costs and creating operational risks for producers of copper, cobalt, nickel, lithium, and other critical minerals.<\/p>\n\n\n\n
One of the main challenges is access to diesel fuel and sulfur. Diesel is essential for operating heavy machinery in open-pit mining operations, while sulfur and sulfuric acid are critical inputs for certain copper and cobalt extraction processes.<\/p>\n\n\n\n
According to industry executives and analysts, the situation has not yet caused a large-scale decline in production, mainly because major companies were able to secure inventories and absorb rising costs. However, smaller mining firms are already beginning to scale back operations due to the sharp increase in supply costs.<\/p>\n\n\n\n
Robert Friedland, founder and co-chairman of Ivanhoe Mines, stated during a conference in Switzerland that \u201cthe supply chain is breaking down,\u201d warning that the real impact of the war on the global mining industry is only beginning to emerge.<\/p>\n\n\n\n
The Middle East accounts for approximately half of global maritime sulfur trade and a significant portion of the international diesel supply. This makes the global mining industry especially vulnerable to any disruption across the region.<\/p>\n\n\n\n
Sulfur is essential for producing sulfuric acid, which is used in the SX-EW process (solvent extraction and electrowinning), a technology responsible for nearly 17% of global copper production.<\/p>\n\n\n\n
Analysts from Goldman Sachs and Bank of America warn that a prolonged escalation of tensions could severely impact global copper production, at a time when demand for critical minerals continues to rise due to the energy transition and the rapid expansion of the technology sector.<\/p>\n\n\n\n
Copper prices are already reflecting part of these concerns. On the London Metal Exchange, copper futures climbed more than 40% compared to the previous year, reaching record highs above US$14,500 per metric ton.<\/p>\n\n\n\n
The Democratic Republic of the Congo, the world\u2019s second-largest copper producer and leading supplier of cobalt, is among the countries most exposed to the crisis.<\/p>\n\n\n\n
Much of the sulfur used by mining operations in the Democratic Republic of the Congo is sourced from the Middle East. In addition, many mines rely on the SX-EW process, which requires large volumes of sulfuric acid.<\/p>\n\n\n\n
Industry sources indicated that securing new sulfur shipments could take up to two months, while some operations only have enough inventory to last for approximately one month.<\/p>\n\n\n\n
Sulfur prices across Africa have nearly doubled since the conflict began, reaching close to US$1,200 per metric ton, while some smaller contracts climbed as high as US$1,400.<\/p>\n\n\n\n
Some smaller mining companies have already begun scaling back production due to rising diesel costs and the difficulty of securing sulfur at reasonable prices.<\/p>\n\n\n\n
Goldman Sachs estimates that if disruptions continue, the Democratic Republic of the Congo could lose approximately 125,000 metric tons of copper production this year.<\/p>\n\n\n\n
In Zambia, companies such as Jubilee Metals have also warned about growing sulfuric acid supply challenges and are evaluating joint purchasing strategies to manage the shortage.<\/p>\n\n\n\n
Pressure on the sulfuric acid market intensified further after China announced plans to restrict exports of acid produced as a byproduct of copper and zinc smelting operations.<\/p>\n\n\n\n
According to Goldman Sachs, this could remove approximately 1.5 million metric tons from the global seaborne market through December.<\/p>\n\n\n\n
Chile appears to be one of the countries most vulnerable to this situation, as nearly 30% of the sulfuric acid used by the Chilean mining industry was sourced from China.<\/p>\n\n\n\n
Analysts estimate that up to 200,000 metric tons of Chilean copper production could be at risk if the restrictions remain in place.<\/p>\n\n\n\n
Even so, major companies such as Codelco and Freeport-McMoRan stated that they still maintain a certain level of protection through long-term contracts and internal supply arrangements, although they acknowledge that sulfuric acid has already become one of the industry\u2019s primary operational concerns.<\/p>\n\n\n\n
Fuel has become another critical challenge.<\/p>\n\n\n\n
Copper, iron, coal, and lithium mines rely heavily on diesel fuel to operate heavy machinery and transport materials.<\/p>\n\n\n\n
Companies such as Codelco and Antofagasta estimate that rising fuel prices have already increased their production costs by nearly 5%.<\/p>\n\n\n\n
In countries such as the Democratic Republic of the Congo, the problem is not limited to fuel prices alone, but also to the physical availability of fuel due to long and highly complex logistics routes.<\/p>\n\n\n\n
Bank of America stated that in some mining regions, diesel has become a \u201ccritical operational constraint.\u201d<\/p>\n\n\n\n
In Ethiopia, Akobo Minerals temporarily reduced operations due to fuel shortages. In Western Australia, smaller mining companies also began limiting activities to conserve diesel fuel.<\/p>\n\n\n\n
Fenix Resources, an iron ore producer, announced cuts to non-essential activities and mining transport operations due to fuel supply restrictions.<\/p>\n\n\n\n
Several of the world\u2019s largest mining companies have begun warning investors about the financial impact of the war in the Middle East.<\/p>\n\n\n\n
Teck Resources warned about rising fuel costs at its Chilean mining operations. Freeport-McMoRan also raised its 2026 cost projections due to increasing volatility in diesel and sulfuric acid prices.<\/p>\n\n\n\n
Chile\u2019s state-owned mining company Codelco also acknowledged that the conflict has become an unexpected obstacle for the industry.<\/p>\n\n\n\n
Company president M\u00e1ximo Pacheco summarized the industry\u2019s sentiment with a blunt statement:<\/p>\n\n\n\n
\u201cProducing copper today is becoming increasingly difficult.\u201d<\/p>\n\n\n\n
Overall, the global mining industry continues to maintain relatively stable operations, but concerns are growing as the conflict drags on and global supply chains show increasing signs of fragility.<\/p>\n\n\n\n
<\/p>","protected":false},"excerpt":{"rendered":"
La industria minera global comenz\u00f3 a sentir con fuerza las consecuencias de la guerra en Ir\u00e1n y de las tensiones en Medio Oriente. Desde Australia hasta \u00c1frica, las cadenas de suministro de insumos esenciales para la miner\u00eda est\u00e1n siendo afectadas, elevando costos y generando riesgos operativos para productores de cobre, cobalto, n\u00edquel, litio y otros […]<\/p>\n","protected":false},"author":1,"featured_media":465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diesel"],"yoast_head":"\n