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Yes this is similar to China attempting to corner the market on Lithium, but then as soon as they squeezed prices, Chile suddenly built out a massive amount of

Yes this is similar to China attempting to corner the market on Lithium, but then as soon as they squeezed prices, Chile suddenly built out a massive amount of Lithium production. You cannot "buy all the coal" any more than you can: - buy all the oil (OPEC vs. NA shale fracking) - buy all the lithium (China vs. Chile) - buy all the magnesium (Freeport, TX vs. China vs. get from any seawater anywhere)

lkbm 5y ago
People can still start new mines, but the price of coal will increase due to the capital costs that incurs (and the time it takes to ramp up production). This works the same as a tax on coal, or a subsidy on its competitors: some people will keep using it, but people on the margins will be pushed to the alternative. The fact that the cost increase is likely front-loaded due to the time it takes to ramp up a new mine is probably extra beneficial in the case of coal, since it's on its way out as a technology. Mining coal might be worth it right now, but will it be worth it by the time your new mine is up and running? With lithium, the answer would be yes, because lithium demand is growing. With coal, hopefully not so much.
- mlyle 5y ago
  > With lithium, the answer would be yes, because lithium demand is growing. With coal, hopefully not so much. Yah, if nothing else the regulatory risks would make one pretty nervous about dumping a ton of money into a new coal mine.
nextplease 5y ago
'Sodic aluminum oxide', anyone? Seems like... it is um winter !? (-;
tyingq 5y ago
It seemed to work for diamonds.
marcosdumay 5y ago
There are big differences on the availability of resources of all of those. Each one will behave differently if you try to "buy it all out". In particular, relatively rare minerals that have been extracted in a relentless scale like coal and oil are harder to replace than very abundant ones that have been extracted on an opportunistic way like lithium. (Magnesium is also very abundant, but has seen more intensive extraction.)

lkbm 5y ago

People can still start new mines, but the price of coal will increase due to the capital costs that incurs (and the time it takes to ramp up production). This works the same as a tax on coal, or a subsidy on its competitors: some people will keep using it, but people on the margins will be pushed to the alternative. The fact that the cost increase is likely front-loaded due to the time it takes to ramp up a new mine is probably extra beneficial in the case of coal, since it's on its way out as a technology. Mining coal might be worth it right now, but will it be worth it by the time your new mine is up and running? With lithium, the answer would be yes, because lithium demand is growing. With coal, hopefully not so much.

mlyle 5y ago
> With lithium, the answer would be yes, because lithium demand is growing. With coal, hopefully not so much. Yah, if nothing else the regulatory risks would make one pretty nervous about dumping a ton of money into a new coal mine.

nextplease 5y ago

'Sodic aluminum oxide', anyone? Seems like... it is um winter !? (-;

tyingq 5y ago

It seemed to work for diamonds.

marcosdumay 5y ago

There are big differences on the availability of resources of all of those. Each one will behave differently if you try to "buy it all out". In particular, relatively rare minerals that have been extracted in a relentless scale like coal and oil are harder to replace than very abundant ones that have been extracted on an opportunistic way like lithium. (Magnesium is also very abundant, but has seen more intensive extraction.)