Materials & Mining: Deals, Funding, REEs - Feb 13

The Big Picture

Deal activity and public-sector capital are creating broad tailwinds for materials and mining this morning, and you should take notice. Sandvik's acquisition in South Africa, a new 90% earn-in at a Québec REE project, and a high-profile list of U.S. government funding channels all point to rising strategic investment across the supply chain.

Why does that matter to you as an investor? These developments improve supply-chain resilience, accelerate technology adoption, and increase the odds of near-term project advancement in copper, REEs, graphite and recycled metals, all of which underpin industrial demand for years to come.

Market Highlights

Here are the quick facts from overnight and pre-market headlines you need to know.

• Sandvik agrees to buy ThoroughTec Simulation in South Africa, expanding its mining training and simulation capabilities, a move that strengthens service offerings for equipment operators and OEM customers, $SAND.
• New Frontier Minerals signed to acquire 90% of the Pomme REE Project in Québec, increasing exposure to rare earth elements that feed permanent magnets and electric motors.
• The London Metal Exchange announced a sustainability premium step and reported record January 2026 activity in copper contracts and overall average daily volumes, signaling robust market liquidity and pricing signals for metals.
• Betolar, GTK and EcoGraf launched a partnership to explore sustainable uses for tailings from the Epanko graphite project in Tanzania, linking circular-economy work to battery-material supply chains.
• REalloys appointed U.S. Army General Jack Keane to its board, a governance move that may aid strategic guidance and stakeholder credibility for a recycling-based magnetic materials player.
• Smurfit Westrock reported closing about 600,000 tons of high-cost capacity in 2025 and said 2026 has begun with a generally better operating environment, a sign of portfolio discipline in recycling and packaging markets.
• InvestorNews tracked an expanded U.S. government funding list for critical minerals spanning DOE, DoD, Commerce, USDA, DFC and EXIM, highlighting multiple financing channels for domestic and allied supply chains.
• Smaller names like DMG Blockchain Solutions ($DMGI / $DMGGF) and Silver Bullet Mines ($SBMI / $SBMCF) continue to reposition business models, from crypto mining to AI infrastructure and hub-and-spoke mining strategies.

Key Developments

Sandvik expands into simulation and training

Sandvik's purchase of ThoroughTec Simulation strengthens its end-to-end offering for mining customers by adding advanced equipment simulators and training programs. For investors, this is a strategic diversification play that can boost aftermarket and services revenue, an area that typically has higher margins and steadier cash flow than cyclical equipment sales.

REEs and circular solutions gain traction

New Frontier's move to secure 90% of the Pomme REE Project in Québec is an explicit bet on securing western REE supply. At the same time, Betolar's partnership with GTK and EcoGraf to reuse Epanko graphite tailings highlights another trend, scaling recycled or repurposed feedstocks for battery materials. Together these items improve both primary and secondary supply prospects for critical materials you rely on to power electrification.

Policy and market structure: funding and exchange shifts

The InvestorNews rundown of U.S. government funding shows capital is flowing through multiple federal channels, including the DOE Loan Programs Office, DoD Title III, the Commerce CHIPS office, USDA programs, DFC and EXIM. The LME's sustainability premium step and record January volumes add market structure momentum. That combination means projects that line up with policy goals and sustainability credentials are likelier to win financing and offtake support.

What to Watch

Keep an eye on how these items develop this quarter and how they could change your portfolio exposure.

• Deal details from Sandvik: look for purchase price disclosure and integration plans, which will show whether the transaction is accretive to margins and services revenue.
• Permitting and financing timelines for New Frontier's Pomme REE Project, and any JV or offtake announcements that could de-risk the asset for investors.
• Follow the flow of U.S. federal funding: which companies and projects secure DOE, DoD or EXIM backing, and the size of those awards, because those moves tend to re-rate small-cap critical-minerals names.
• Progress on tailings reuse pilots at Epanko, and whether EcoGraf or Betolar announce scale-up tests or commercial offtake for recovered graphite. Could tailings become feedstock for battery anodes?
• Response from trading desks to the LME sustainability premium and the impact on traded copper spreads and physical market premiums.

Want to act? Consider selective exposure to companies with clear service growth, REE assets or recycling capabilities, and watch near-term funding headlines that can act as catalysts for share re-ratings.

Bottom Line

• Strategic M&A and partnerships are strengthening services, simulation and recycling capabilities across the sector, a positive for long-term margins.
• New Frontier's 90% Pomme deal and tailings reuse pilots point to growing emphasis on REEs and secondary feedstocks, which supports electrification supply chains.
• U.S. government capital is a real tailwind for projects aligned with critical-minerals policy, and execution of funding will be a near-term catalyst for developers.
• LME moves and record volumes suggest strong market liquidity, which helps price discovery and could underpin higher activity in copper and related metals.
• For your portfolio, prioritize companies with policy-aligned projects, strong service streams and demonstrable recycling or ESG credentials, and expect volatility around funding announcements.

FAQ Section

Q: How will U.S. government funding affect junior miners and project developers? A: Government programs can close financing gaps, lower project risk, and attract private capital, but awards are selective and often depend on strategic relevance and readiness.

Q: Should you view Sandvik's acquisition as a growth or defensive move? A: It's primarily a growth and margin diversification move, adding higher-margin services that smooth cyclicality in equipment sales.

Q: Do tailings reuse projects materially change supply for battery materials? A: They can over time, by providing lower-cost secondary feedstocks and reducing environmental liabilities, but commercial scale-up and quality control will determine real impact.