Economic drivers and context for resource demand

Question 1

What can make global news heteorgenous?

Answer 1

The fact that saome areas dont have free news and reports are often subjective

Question 2

When might exploration commence or cease?

Answer 2

Changes in price
Changes in restrictions

Question 3

What is the effect of stockpiling/ surpluses?

Answer 3

Lowers price as avaliability high allows greater consumer choice

Question 4

What is the market effect of supply shortages?

Answer 4

higher price as lower avaliability and less consumer choice

Question 5

What is the trend in lithium production and who is the largest producer?

Answer 5

Net increase (2020 - 85,000 tons)
Australia

Question 6

What is lithium key for?

Answer 6

The energy transition from fossil fuels

Question 7

What is lithium used for?

Answer 7

high capacity power/ rechargeabe batteries

Question 8

What are lithium deposits like?

Answer 8

Bulk in a handful of countries usually as evaporites

Question 9

What is the resource lifetime of lithium?

Answer 9

Over 50 years

Question 10

Why is rate of extraction for lithium low?

Answer 10

To control commodity price

Question 11

What was the lithium extraction of the USA like compared to its reserves?

Answer 11

Every ton produced by US they had 833 tonnes in reserve

Question 12

What was the reason for the increase in lithium price in 2020?

Answer 12

Increased demand and limited supply

Question 13

Why has lithium prices returned to pre-peak levels in 2024?

Answer 13

Oversupply of battery materials is likely to persist for the short term.
Decelerating growth in EV sales in China may cap lithium demand
The emergence of alternative battery materials and energy storage technologies poses a potential headwind for lithium-ion batteries

Question 14

How could current low prices make further price drop less likely for lithium?

Answer 14

Force producers to cut output cushioning price fall

Question 15

What are the characteristics of 1 carat of diamond?

Answer 15

0.2 grams
Approx 6.5 mm in diameter

Question 16

What is the price of diamond linked to?

Answer 16

consumer choice – financial downturns mean less money spent, luxury commodities hit hard

Question 17

What diamonds are more affected by reduced consumer input?

Answer 17

LArger diamonds
smaller ones for industry not as affected

Question 19

What was the wrolds second largest diamond?

Answer 19

Found in Botswana and was 2492 carats

Question 20

How much diamond production comes from botswana?

Answer 20

20% of world production

Question 21

What reason did china cut exports of germanium and gallium?

Answer 21

Political decision in retaliation to US bans on use of Chinese electronics equipment and chip export to China

Question 22

Why was it significant that china cut REE exports of germanium and gallium?

Answer 22

IMportant in tech like computer chips and china produces 80% of germanium and 60% of gallium

Question 23

What was the effect of china cutting REE exports?

Answer 23

Price obviously rises
Other countries produce these elements, but takes time to increase production
Alternative minerals now sought to remove reliance on these

Question 24

Whaat is REE antimony used in?

Answer 24

Used in fireworks, but also in alloys, paints, and ceramics. Alloys include military applications (ammunition, missiles, night vision goggles)

Question 25

HOw much of global antimony comes from china?

Answer 25

48%

Question 26

Why did china restrict export of antimony?

Answer 26

Restricted for national security – Political decision to limit US and European access

Question 27

What source is the uks largest energy deriver?

Answer 27

Natural gas - (13% of this from USA, UAE, Peru and Angola)

Question 28

How much stroage of gas does the uk have in TWH?

Answer 28

8.9 30 wells with a capacity for 100 cubic feet of gas Capacity for 9 days of Uk gas use

Question 29

What is the main way to increased resource security?

Answer 29

Domestic producton to ensure internal supply

Question 30

What does resource security mean more broadly?

Answer 30

who is permitted to use resources produced (embargoes, sanctions, etc.)

Question 31

What are some examples of countries trying to increase resource security?

Answer 31

Development of US oil shale and shale gas resources in response to nationally surging demand and slowing production UK development of lithium extraction (Cornish Lithium) - private and not nationalized venture China limiting rare earth elements

Question 32

Why is stockpiliing of resources done?

Answer 32

A common practive to atrificially maintain prices

Question 33

Why is overproduction done?

Answer 33

Artificailly maintain price and is done to stop alternatives being productive

Question 34

What is the implication for geoscience careers in energy?

Answer 34

Boom and bust cycle of energy sectors based on the economy

Question 35

What is a boom phase in the energy sector?

Answer 35

Strong economy, strong demand, resource extraction high; prices high; no stockpiling Marginal resources change from conditional reserves> total reserves

Question 36

What is a bust phase in the energy sector?

Answer 36

Weak economy, low demand, surpluses so stockpiling; low prices Marginal resources change from total reserves>conditional reserves

Question 37

How is employment of geoscientists in energy dicateted by boom and bust?

Answer 37

Historically buoyant careers in exploration – typically restricted to in boom cycle Bust cycles – diversification of careers, recently into alternative and renewable energy, geotechnics, hydrogeology, environmental sector including environmental management and remediation.

Question 38

Who has the highest production of lithium and who has the highest reserve and what is the implication of this?

Answer 38

Highest production Australia with a reserve of around 4.2 million tons while the highest reserve is chilies with 9.2 million tons meaning they have the option to increase prodcution and will maintain reserve for longer

Question 39

Why did the price of diamonds change when Ukraine was attacked?

Answer 39

People uncertain about dollar do started investing in gold and diamonds

Question 40

How can finding large diaonds affect investing?

Answer 40

If a company finds large diamonds people will invest as the value of that company will increase when the diamond value is shown

Question 41

What technique is being used to diamond mines to find larger diamonds and avoid breakages?

Answer 41

The use of xrays to scan the rock face for larger diamonds and then cutting them out

Question 42

What happened to the orice of REEs when China cut exports?

Answer 42

price increased as wholesalers started to stockpile

Question 43

Why did the US reduced the amount of chips china recieved?

Answer 43

To slow down military development but now US dont get matierla they need to make the chips

Question 44

What has the increased REE price caused by chinas cuts allowed for?

Answer 44

Previously sub-economic sources to now become viable