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Ecuador reopens the mining concession registry seven years after it was closed
The mining ministry of Ecuador announced Monday that it had launched a new register of concessions, the first in seven years. This was done to encourage more mining projects in the South American nation and to curb illegal activities. Since 2018, the previous registry has been closed due to concerns about irregularities in concession system. No new concessions were granted since then. Mining Minister Ines Manuelo said at a recent press conference that "regulation is needed to protect investments and promote responsible development with respect for the environment and communities." The Ministry will open the register in phases, starting with small-scale nonmetallic mining such as limestone or clay, which are used to make cement and ceramics. The second phase, which will be for small-scale metal mining, is scheduled to open in September. In 2026, the registry will be opened to other forms of mining. Manzano stated that the National Mining Cadastre will consolidate all information about mining concessions in a transparent and efficient manner. Reopening coincides new regulations for how to apply for permits in small-scale non-metallic mines. Manzano stated that "we have improved the regulations, and we will issue guidelines to enable the proper development" of the mining value-chain. In October, President Daniel Noboa who pledged to combat drug gangs, boost the economy and fight the drug trade, ordered the relaunch of the mining registry as part of an mining decree which includes measures to stop the spreading of illegal gold mines. Ecuador exports more than $3 billion worth of copper, gold, and silver. Due to the opposition of indigenous communities and negative court rulings, Ecuador has lagged behind countries in the Andean region such as Peru or Chile when it comes to large-scale mining. Noboa’s administration also proposed new fees for mining, causing a backlash among the mining chamber of the country. Carolina Jaramillo, a government spokesperson, told reporters on Monday that fees will be based on the size and type mining projects and that an open dialogue is being held with representatives of the sector. Reporting by Yury Garca in Quito, Daina Beth Solon in Santiago and Jamie Freed.
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Trump calls for Tehran's evacuation as the Iran-Israel conflict enters its fifth week
Israel and Iran attacked one another for the fifth day in a row on Tuesday. U.S. president Donald Trump called on Iranians to leave Tehran citing his country's alleged rejection of a nuclear arms deal. The White House announced that Trump would leave the Group of Seven Summit in Canada a day earlier than planned due to the Middle East crisis. Fox News reported that he would convene the National Security Council. French President Emmanuel Macron stated that Trump's early departure is positive because the immediate goal was to get Israel to agree to a truce with Iran. "Iran would have been better off signing the 'deal,' which I had told them to do. It's a waste of life and a shame. IRAN CANNOT HAVE A NUCLEAR WEAPON. I repeated it again and again! "Everyone should immediately evacuate Tehran!" Trump posted a message on Truth Social, his platform for social media. Iranian media reported heavy fires and explosions in Tehran as early as Tuesday morning. Asriran News reported that air defences had also been activated in Natanz which is home to important nuclear installations located 320 km away. After midnight, Israeli air raid sirens were heard in Tel Aviv and an explosion occurred as Iranian missiles again targeted the country. Israel reported 24 civilian deaths while Iranian officials claimed 224 deaths in five days. Bezalel SMotrich, Israeli Finance Minister, said that nearly 3,000 Israelis were evacuated because of damage caused by Iranian air strikes. According to sources, Tehran asked Oman and Qatar to ask Trump to put pressure on Benjamin Netanyahu, the Israeli prime minister to reach an immediate ceasefire. Two Iranian and three regional source said that Iran would be flexible in its nuclear negotiations. Abbas Araqchi, Iranian Foreign Minister Abbas said that the next steps would be consequential if President Trump was sincere about diplomacy. He also expressed interest in ending this war. "Israel must stop its aggression. And unless there is a complete cessation of the military aggression against us our responses will continue." Netanyahu told reporters Monday that Israel is committed to eliminating the threats posed Iran's ballistic missile and nuclear programs. He added, "If it can be done in another way, fine." We gave it 60 days." Trump told reporters on Friday morning, the first day Israel launched its assault, that he gave the Iranians 60-days to reach an agreement with regard to the cessation of uranium enrichment. He said the deadline had passed without a deal. After Trump's warning to evacuate, oil prices rose more than 2% in Asia early on Tuesday. This reversed losses from Monday amid reports that Iran wanted an end to hostilities. CHINESE URGED TO LEAVE ISRAEL The Chinese Embassy in Israel has urged Chinese nationals to leave Israel as soon as they can via land border crossings. Israel's attack on Iran's state-run broadcaster and its uranium-enrichment facilities escalated the Iran-Israel air conflict, the largest battle between two long-time enemies. Rafael Grossi of the International Atomic Energy Agency told the BBC the Natanz plant suffered extensive damage and likely destroyed 15,000 centrifuges. Iran's Fordow facility remained mostly intact. The talks between Iran and the United States, which were to be hosted by Oman on June 15, have been cancelled. Tehran has said that it cannot negotiate under threat. Israel began its air war by launching a surprise strike that killed the top nuclear scientists and military commanders of Iran. Israel claims to have taken control of Iranian airspace, and plans to intensify the campaign over the next few days. Trump has repeatedly said that the Israeli attack could be ended quickly if Iran accepted U.S. requirements to curb its nuclear program. Trump said to reporters at the Group of Seven Summit in Canada, Monday, that Iran would be foolish not sign a deal. An official from the United States said that Trump would not sign G7 leaders' draft statements calling for deescalation in the conflict. The draft statement states that Iran cannot have a nuke and Israel has the right of self-defense.
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Element 25, a company in Australia, secured $32.6 million in government debt for the construction of a manganese mine
The Australian manganese manufacturer Element 25 announced on Tuesday that the Northern Australia Infrastructure Facility has agreed to provide an advanced debt facility up to A$50m ($32.57m) for its Western Australia project. Early trading saw shares of the producer jump as high as 10.3%, to A$0.215. Manganese, a metal in high demand by the electric vehicle industry, is being funded. General Motors, along with its battery partner LG Energy Solution, announced last month that they plan to begin commercial production in the United States of lithium manganese rich (LMR) batteries chemistry starting in 2028. GM says the chemistry will be cheaper than the nickel-rich cell technology used today but still provide the customers with the range that they desire in future electric trucks or full-size SUVs. NAIF will fund the Butcherbird Manganese Expansion Project in the Pilbara Region, while Element 25 continues exploring other funding sources such as offtake prepayment. The miner plans to increase the production capacity of Butcherbird to 1.1 millions tonnes per year of manganese dioxide concentrate. The project will also be able to provide manganese concentrate as feedstock to Element 25’s planned high purity, battery grade manganese monohydrate (HPMSM), which the company plans to build in Louisiana in the United States. Our feasibility studies confirmed Butcherbird’s pedigree, as a long-life production hub for manganese from its 274,000,000 tonne resource. This is essential to our plans of HPMSM in USA and possibly other locations worldwide," said Element 25’s managing director Justin Brown. Brown said that Element 25 also considers other geographies such as Tokyo to build processing hubs of the vital mineral, which is expected to grow in demand by the electric vehicle industry. The firm also said that it was in talks with several potential financiers to provide the remaining project financing.
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Supply concerns fuel oil price rises as Iran-Israel conflict fuels supply fears
Oil prices rose over 2% Tuesday, as tensions between Iran and Israel intensified. U.S. president Donald Trump also urged "everyone to evacuate Tehran", increasing the likelihood of further unrest and disruption in the oil supply. Brent crude futures contracts were up $1.17 or 1.6% at $74.4 a barrel as of 0005 GMT, and U.S. West Texas Intermediate Crude was up by $1.34 or 1.87% at $73.11 – both had risen over 2% in the previous trading session. After media reports that Iran was seeking to end hostilities, both contracts were settled at a lower price than 1% on Monday in the hope of easing geopolitical stress. The conflict took an ugly turn on Tuesday, when Iranian media reported heavy air defence and explosions in Tehran. Tel Aviv's air raid sirens were activated in Israel in response to Iranian rockets. Iran is the third largest producer of oil among the members of the Organization of Petroleum Exporting Countries. Hostilities may disrupt the oil supply and increase prices. The head of U.N.'s nuclear watchdog said that Iran's largest uranium-enrichment plant had also suffered extensive damage. Trump stated that Iran should have reached a nuclear agreement with the U.S. prior to Israeli strikes and he believed Iran is now willing to come to an agreement. As part of any agreement, the lifting of U.S. sanction would allow Iran export more oil and impact global crude prices. OPEC+ - which includes Russia and pumps half the world's oil – said Monday that they expected the global economy, including the U.S., to be resilient in the second part of the year. The group also lowered its estimate for the growth of oil supply in 2026 from non-OPEC+ nations and the U.S. (Reporting and editing by Christopher Cushing in Bengaluru, Anjana Anil)
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Shell survey shows that Europeans are less willing to switch to EVs than Americans.
Shell published a survey on Tuesday that showed drivers are less willing to switch from combustion engines to electric vehicles. The trend is more prominent in Europe than the United States. According to a survey of 15 000 drivers from around the world, including Britain and China, Germany, and the United States, the main obstacle is the cost. David Bunch, Shell’s director of mobility and convenience, said: "Europe surprised us." The cost of the car is the biggest barrier. The range anxiety is still present but it is diminishing. Electric cars are 30% more expensive on average than internal combustion engines. The survey found that 41% of European respondents said they would switch to electric cars this year, compared to 48% last year. In the United States, however, the number dropped three percentage points, to 31%. Only about half of European motorists said that public charging has improved over the past year. This is below China at 74%, and the United States at 80%. Only 17% said that public charging was a good value, compared to 69% of Chinese drivers and 71% of Americans. Shell has 75,000 charging stations and focuses on on-the-go charging rather than home charging. China, Britain and Germany are its core EV markets. Singapore, the Netherlands, Singapore, Switzerland, China, Britain and Germany are also important. (Reporting and editing by Barbara Lewis; Shadia Nasralla)
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UK completes 500 million pound rail deal to save British Steel jobs
The British government will finalise the 500 million pound rail steel deal with British Steel. This is to protect thousands jobs at an Eastern England steelmaking facility that was taken over by the state earlier this year. British Steel will supply over 337,000 metric ton of rail track in five years. The government announced the contract on Tuesday. This comes two months after the Chinese took control of British Steel from Jingye. They did this so that the blast furnaces at Scunthorpe would not be closed. Jonathan Reynolds, the business minister said: "This is a great vote of confidence for British Steel. It will support thousands skilled jobs in years to come." The contract will begin in July and provide 80% of the rail needs for publicly-owned Network Rail. It will also build on the 2.5 billion pound fund that the government has set up to increase steel production during the next five-year period. The statement stated that to ensure the security of supply Network Rail will award smaller contracts for rail to European manufacturers. These companies will provide specialist rail products along with British Steel. Last month, the sector, which is struggling with high costs, and stiff competition, called for clarity about when U.S. steel tariffs would be removed under a historic U.S./UK agreement agreed in May, to remove President Donald Trump’s steel levies.
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Senate Republicans try to eliminate $7,500 electric vehicle tax credit
The U.S. Senate Republicans proposed a tax-and-budget bill on Monday that would eliminate the $7,500 credit on the sale of new electric vehicles 180 days after it is signed into law. It would also immediately terminate the credit for leased EVs manufactured outside North America. The Republicans have targeted EVs in a variety of ways, reversing former president Joe Biden's policies that encouraged the use of electric vehicles and renewable energies to combat climate change and reduce emission. The Republican Senate Finance Committee's proposal would also eliminate a $4,000 tax credit for EVs on used vehicles 90 days after it was approved. Senate Republicans propose that, as of June 16, the credit of $7,500 for leased cars, which would not also qualify for the credit, will be discontinued. The current leased vehicles are eligible for the credit without restrictions on their content or where they were built. If they meet the same requirements, leased vehicles can still qualify for the tax credit 180 days after the passage of the bill. North American battery assembly and Vehicles purchased must meet critical mineral content requirements. The House of Representatives' version would extend the $7,500 tax credit for new-EVs through 2025 and 2026, respectively, if automakers haven't sold 200,000 electric vehicles before the program is terminated. The Republican Senate proposal would exempt auto loan interest from tax for new cars manufactured in the U.S. until 2028. However, it will phase out for individuals making over $100,000 per year. The House bill would impose an annual fee of $250 for EVs to cover road repair costs, and $100 for hybrids. The House bill will phase out EV production tax credits by 2028. Last week, President Donald Trump signed a congressional resolution to block California's historic plan to stop selling gasoline-only cars by 2035. This plan has been adopted in 11 other states that represent a third the U.S. automobile market. (Reporting and editing by Leslie Adler, David Gregorio, and David Shepardson)
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Carney and Trump aim to reach a Canada-US agreement within 30 days
Mark Carney, the Canadian Prime Minister, announced on Monday that he and U.S. president Donald Trump had agreed to try to conclude a new security and economic deal between their two countries within 30 days. The announcement was made only a few short hours after Canadian officials had said that both sides still needed to work hard before they could sign the agreement. Carney, who was elected in April on the promise that he would fight Trump's tariffs and is now pushing for a "new economic and security relationship" with the United States. Trump had reaffirmed his love of tariffs during a previous meeting between the two men on the sidelines a G7 Summit in Alberta. In a press release, Carney's Office said that "Prime Minister Carney... and President Trump... exchanged updates on key issues raised during negotiations on a renewed economic and security relationship" between Canada and the U.S. "To this end, the leaders have agreed to continue negotiations in order to reach a deal in the next 30 days." A Carney spokesperson confirmed that the language of the statement meant both sides wanted to reach an agreement in the next thirty days. Carney's Office did not respond immediately when asked if the statement meant Ottawa accepted the idea of some U.S. Tariffs remaining. Trump had said that a new agreement with Canada is possible, but that tariffs must play a part. The Canadian government does not agree. "I have a concept for a tariff." Mark has a completely different idea... We're going see if it is possible to get to the bottom," Trump said. "I'm a tariff person." Canada, which is the United States' top supplier of aluminum and steel, will face tariffs on both metals, as well as auto exports, imposed by Trump. Carney stated last week that the two countries were engaged in intensive negotiations regarding the tariffs, and that Canada would prepare retaliatory measures if the negotiations failed. The optimism that a deal would be reached quickly has waned in the last 10 days. Canadian officials have privately stated that the United States does not appear to be in a hurry. "We're still in the middle of this discussion. We aren't at the end." Kirsten Hillman is Canada's ambassador in Washington. She said that Canada should not have tariffs on exports to the United States. She told reporters that they would continue to speak until the best possible deal was reached for Canada. (Reporting and editing by Rod Nickel, Stephen Coates, and David Ljunggren)
Central banks and global markets focus on Iran ceasefire report.
Investors were encouraged by reports that Iran is seeking to end hostilities against Israel and they remained confident about their predictions for the busy week of central banks meetings.
The Wall Street Journal reported that Iran is seeking a ceasefire following an attack by Israel on Friday, which sparked fears of a wider conflict and sent oil prices soaring. Stocks also fell as a result.
Sources have confirmed that Iran asked regional allies press Donald Trump, the U.S. president, to convince Israel to accept a ceasefire.
Geopolitics loomed large, and there were signs of cracks among the Group of Seven leaders who are meeting in Canada. Officials made contradictory statements on whether Trump would sign the draft statement that called for a de-escalation in the Middle East conflict.
Peter Cardillo is the Chief Market Economist of Spartan Capital Securities, a New York-based brokerage.
The market has rallied on this, I believe.
After a wild session on Friday, Brent crude oil futures settled down at $73.23 a barrel, a loss of $1.00 or 1.35 %.
The Dow Jones Industrial Average rose 0.75% in afternoon trading. This was just a little bit below the morning highs. The S&P 500 rose 0.90%, while the Nasdaq Composite climbed 1.45%.
The 10-year Treasury note yield rose from 4.424% to 4.452% late Friday, after initially falling due to reports about Iran's outreach towards Israel.
MSCI's global stock index rose 1.09% after the U.S. opening and continued to rise on the day, closing at 0.85%.
The STOXX 600 index in Europe was boosted earlier in the day by a recovery in travel stocks. Gulf stocks were also up.
Data showed that retail sales and industrial production were in line with expectations.
FED MEETING IN FOCUS - MORE DATA TO COME
Emily Roland, Manulife John Hancock Investments' co-chief investment analyst, says that a prolonged increase in oil prices may contribute to inflation. However, the recent movements are unlikely to have a significant impact on the Federal Reserve meeting scheduled for Wednesday.
Roland explained that the Fed relies on data and it can take time for oil prices to impact inflation figures (whether they are higher or lower).
The Fed is likely to keep the markets on hold with no change in the Fed's view that there will be between 2 and 3 rate cuts of 0.25 percent by the end the year. The bond market still prices in two rate cuts for the year. We will see if we get a different result this week.
The U.S. Retail Sales data will be released on Tuesday. It may show that auto sales are down, which could drag the headline figure down, even though core sales have increased. The weekly unemployment claims are released on Wednesday due to a market holiday on Thursday.
This week, the central banks of Norway and Sweden will also be meeting. The latter is expected to lower rates.
It is expected that the Swiss National Bank will meet on Thursday. The rate cut is likely to be at least one quarter point, if not more. There's a chance the rate could even go down to negative due to the strength of Swiss Franc.
Bank of Japan policy meeting is scheduled for Tuesday. Rates are expected to remain at 0.5%. However, the possibility of tightening rates later in the year remains.
It is also possible that it will slow down the sale of its government bonds in the next fiscal year.
Gold fell 1.24%, to $3389.71 per ounce.
(source: Reuters)