The supply crunch of critical commodities has driven a surge in interest in minerals exploration, often a neglected part of the mining industry due to its history of taking investors’ money and not delivering promised returns. Environmental, social and governance (ESG) standards are also pushing investors to consider the lifetime impacts of a mine rather than just the potential profits. Both of these factors mean European explorers are hot property.
Former Xstrata boss Sir Mick Davis's vehicle Vision Blue Resources has just backed the reopening of South Crofty tin mine in Cornwall by investing in Cornish Metals (CUSN). His £25mn investment will pay for the massive pumping set-up needed to remove the water from the mine, which closed down in 1998.
“Restarting production at this historic underground mine, within the existing footprint and with the benefit of modern production techniques, is being enabled by [Vision Blue Resources’] commitment to invest,” said Davis.