The Rush for Jade in British Columbia
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The Rush For Jade in British Columbia

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The Rush For Jade in British Columbia

The Rush For Jade in British Columbia

Infographic presented by Electra Stone

Many years ago, jade used to travel to China along the Silk Road. Today, more and more jade is being shipped across the Pacific Ocean from British Columbia.

China is the epicenter of jade demand and culture, and today’s infographic shows how jade is formed, the rush for BC jade, and how jade gets from the boulder to the market.

How Jade is Formed

Finding high-quality jade is extremely difficult, which is part of the reason it is so valuable. Jade is created in areas of the world that have subduction zones, such as around the Ring of Fire.

Subduction occurs when two tectonic plates collide and one is forced under the other. The elements are carried deep into the earth, where immense heat and pressure creates the necessary conditions for the formation of jade. This process takes 60 million years.

Most of the world’s jade forms in areas with this kind of intense geological activity. Xinjiang, home to China’s most important nephrite jade deposits, his near where the Indian plate is colliding with the Eurasian plate.

In British Columbia, the conditions are similar, and jade can now be found throughout Canada’s westernmost province. Specifically, there are three areas where today jade is mined: Dease Lake, Mount Ogden, and Cassiar.

The Jade Market

The global market for jade is dominated by Myanmar (formerly Burma) where the majority of jadeite is produced. The size of the reported jade market is largely dependent on data from Myanmar. Before conflict and mine shutdowns resumed in the country in 2011, jade sales were estimated to be $3.5 billion per year.

These shutdowns led to a supply gap in jade, and that is where British Columbia comes in: the production of BC jade has increased from 1.7% to 8.3% from 2011 to 2014.

A 2013 Harvard report put out a more in-depth assessment of the global jade market, and estimated it to be $8 billion.

The BC Jade Market is Booming

Demand for the most desired jade, which comes in an emperor green colour, has put significant price pressure on BC jade. Production of BC jade has doubled, and prices for gem quality jade have jumped to $200-$1,000 per kg.

From Source to Market

BC jade can be found in hard rock deposits or in alluvial boulders that have been moved by glaciers over time.

“New mine jade” refers to jade found in hard rock deposits. This is typically more weathered and more susceptible to cracking.

“Old mine jade” is jade that has been dragged by glaciers in boulder form. Only the best boulders survive, and typically these are of high quality.

Jade is similar to gold in that it can be found in a pure form in nuggets in streams and rivers. Often, the most ambitious Chinese buyers may fly in via helicopter to the northern jade sites to buy jade “off the bucket” in cash. This ensures the best quality jade and miners also benefit.

The jade then typically makes its way to a hub like Vancouver to get shipped overseas to China. China is by far the world’s largest market for jade, where it is considered a hard asset and a symbol of wealth, purity, and spirituality. China is also home to the most brilliant jade craftspeople in the world.

Finally, after sometimes years of intricate carving, the jade is sold in major retail centers like Hong Kong or Beijing. Once a finished product, the jade can sell for up to 10x its original price, creating wealth throughout the value chain.

As an example: the Polar Pride Boulder was carved into a massive Buddha and sold for $1 million in 2004.

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Mining

Ranked: The World’s Largest Copper Producers

Many new technologies critical to the energy transition rely on copper. Here are the world’s largest copper producers.

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Visualizing the World’s Largest Copper Producers

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Man has relied on copper since prehistoric times. It is a major industrial metal with many applications due to its high ductility, malleability, and electrical conductivity.

Many new technologies critical to fighting climate change, like solar panels and wind turbines, rely on the red metal.

But where does the copper we use come from? Using the U.S. Geological Survey’s data, the above infographic lists the world’s largest copper producing countries in 2021.

The Countries Producing the World’s Copper

Many everyday products depend on minerals, including mobile phones, laptops, homes, and automobiles. Incredibly, every American requires 12 pounds of copper each year to maintain their standard of living.

North, South, and Central America dominate copper production, as these regions collectively host 15 of the 20 largest copper mines.

Chile is the top copper producer in the world, with 27% of global copper production. In addition, the country is home to the two largest mines in the world, Escondida and Collahuasi.

Chile is followed by another South American country, Peru, responsible for 10% of global production.

RankCountry2021E Copper Production (Million tonnes)Share
#1🇨🇱 Chile5.627%
#2🇵🇪 Peru2.210%
#3🇨🇳 China1.88%
#4🇨🇩 DRC 1.88%
#5🇺🇸 United States1.26%
#6🇦🇺 Australia0.94%
#7🇷🇺 Russia0.84%
#8🇿🇲 Zambia0.84%
#9🇮🇩 Indonesia0.84%
#10🇲🇽 Mexico0.73%
#11🇨🇦 Canada0.63%
#12🇰🇿 Kazakhstan0.52%
#13🇵🇱 Poland0.42%
🌍 Other countries2.813%
🌐 World total21.0100%

The Democratic Republic of Congo (DRC) and China share third place, with 8% of global production each. Along with being a top producer, China also consumes 54% of the world’s refined copper.

Copper’s Role in the Green Economy

Technologies critical to the energy transition, such as EVs, batteries, solar panels, and wind turbines require much more copper than conventional fossil fuel based counterparts.

For example, copper usage in EVs is up to four times more than in conventional cars. According to the Copper Alliance, renewable energy systems can require up to 12x more copper compared to traditional energy systems.

Technology2020 Installed Capacity (megawatts)Copper Content (2020, tonnes)2050p Installed Capacity (megawatts)Copper Content (2050p, tonnes)
Solar PV126,735 MW633,675372,000 MW1,860,000
Onshore Wind105,015 MW451,565202,000 MW868,600
Offshore Wind6,013 MW57,72545,000 MW432,000

With these technologies’ rapid and large-scale deployment, copper demand from the energy transition is expected to increase by nearly 600% by 2030.

As the transition to renewable energy and electrification speeds up, so will the pressure for more copper mines to come online.

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How Gold Royalties Outperform Gold and Mining Stocks

Gold royalty companies shield investors from inflation’s rising expenses, resulting in stronger returns than gold and gold mining companies.

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gold royalty company returns compared to gold and gold mining companies
The following content is sponsored by Gold Royalty
Infographic on gold royalty company returns

How Gold Royalties Outperform Gold and Mining Stocks

Gold and gold mining companies have long provided a diverse option for investors looking for gold-backed returns, however royalty companies have quietly been outperforming both.

While inflation’s recent surge has dampened profits for gold mining companies, royalty companies have remained immune thanks to their unique structure, offering stronger returns in both the short and long term.

After Part One of this series sponsored by Gold Royalty explained exactly how gold royalties avoid rising expenses caused by inflation, Part Two showcases the resulting stronger returns royalty companies can offer.

Comparing Returns

Since the pandemic lows in mid-March of 2020, gold royalty companies have greatly outperformed both gold and gold mining companies, shining especially bright in the past year’s highly inflationary environment.

While gold is up by 9% since the lows, gold mining companies are down by almost 3% over the same time period. On the other hand, gold royalty companies have offered an impressive 33% return for investors.

In the graphic above, you can see how gold royalty and gold mining company returns were closely matched during 2020, but when inflation rose in 2021, royalty companies held strong while mining company returns fell downwards.

 Returns since the pandemic lows
(Mid-March 2020)
Returns of the past four months
(July 8-November 8, 2022)
Gold Royalty Companies33.8%1.7%
Gold9.1%-1.7%
Gold Mining Companies-3.0%-8.6%

Even over the last four months as gold’s price fell by 1.7%, royalty companies managed to squeeze out a positive 1.7% return while gold mining companies dropped by 8.6%.

Gold Royalty Dividends Compared to Gold Mining Companies

Along with more resilient returns, gold royalty companies also offer significantly more stability than gold mining companies when it comes to dividend payouts.

Gold mining companies have highly volatile dividend payouts that are significantly adjusted depending on gold’s price. While this has provided high dividend payouts when gold’s price increases, it also results in huge dividend cuts when gold’s price falls as seen in the chart below.

chart of gold royalty company dividends vs gold mining company dividends

Rather than following gold’s price, royalty companies seek to provide growing stability with their dividend payouts, adjusting them so that shareholders are consistently rewarded.

Over the last 10 years, dividend-paying royalty companies have steadily increased their payouts, offering stability even when gold prices fall.

Why Gold Royalty Companies Outperform During Inflation

Gold has provided investors with the stability of a hard monetary asset for centuries, with mining companies offering a riskier high volatility bet on gold-backed cash flows. However, when gold prices fall or inflation increases operational costs, gold mining companies fall significantly more than the precious metal.

Gold royalty companies manage to avoid inflation’s bite or falling gold prices’ crunch on profit margins as they have no exposure to rising operational expenses like wages and energy fuels while also having a much smaller headcount and lower G&A expenses as a result.

Along with avoiding rising expenses, gold royalty companies still retain exposure to mine expansions and exploration, offering just as much upside as mining companies when projects grow.

Gold Royalty offers inflation-resistant gold exposure with a portfolio of royalties on top-tier mines across the Americas. Click here to find out more about Gold Royalty.

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