Ramaco Resources CEO Talks China, Steel, and Rare Earths

Randall Atkins · Ramaco Resources

Expects more multilateral stockpiles and cross-border supply lines for critical minerals, led by programs like FORGE.

Atkins argues that critical minerals and rare earths have no borders, so supply-chain resilience requires action across continents. He notes that Europe has come together, both as a continent and with the United States, to create stockpiles and cross-border supply lines. He cites an EU program called FORGE as an example and expects more multilateral approaches to meet the material needs of all continents.

“I think there's a program called FORGE, which was put together here in the EU. So I do think there will be more of these types of multilateral approaches to trying to meet the requirements that all continents have for this type of material.”at 5:26

Randall Atkins · Ramaco Resources

Chinese steel dumping drove steel and met coal prices down; protectionist responses will help but slowly.

Atkins argues that dramatic dumping of cheap steel from China around the world pushed steel prices down. That in turn pushed down prices of steel feedstocks such as metallurgical coal. He points to US protectionist measures on steel and says Europe is moving to adopt a similar regime against China. He calls China 'the bad guy' and expects these steps to have some impact, but says it takes time at a macro level.

“I think certainly there have been protectionist measures taken in The United States around the steel industry, and I think the Europeans are now trying to sort of uniformly adopt a similar regime against the Chinese. ... You had dramatic dumping of steel around the world that has caused steel prices to decline, and indeed, that has then ... caused prices of feedstocks for the steel business such as metallurgical coal to decline.”at 7:15

Randall Atkins · Ramaco Resources

Iran-war-driven global diesel price rises are raising input costs for mining companies like Ramaco.

Atkins says mining operators face cost increases from input costs such as diesel fuel. He attributes the worldwide rise in diesel prices principally to the Iran war, not to China. He notes that governments could ease cost structures, which would be positive. The mechanism is that higher diesel prices raise mining operating costs.

“certainly ours on things like diesel fuel and things that have been impacted, not by China in this case, but by the worldwide increase in diesel prices based on, I think, principally the Iranian war.”at 8:28