Latest News
-
EU advisors warn against lowering new climate goal
Independent advisers to the European Union have warned against softening 2040's climate target, while EU officials are considering a softer goal to limit a backlash to ambitious environmental policies. In July, the European Commission will propose a legally-binding target for EU countries to reduce their emissions by 90 percent by 2040 compared to 1990 levels. Brussels, however, is considering options to overcome the pushback of governments. These include setting a lower goal for domestic industries and using international credits to bring up the gap. The European Scientific Advisory Board on Climate Change, or ESABCC, warned against this strategy, saying that it could divert funds from investments into European industries and infrastructure. In an analysis of 2040's target published on Monday, the ESABCC stated that using international carbon credits, even partially, would undermine the creation of domestic value by diverting resources away from the transformation needed in the EU economy. The Commission's spokesperson did not respond directly to the advisors' caution about carbon credits. The spokesperson stated that "the Advisory Board is faithful to its mission to provide scientific advice with full independence and reminds us in today's report of the urgent need for ambitious climate action as well as the importance of setting a target of 2040 emission reduction," Carbon credits are a way for EU countries to buy credits from projects abroad that reduce CO2 emission - such as forest restoration in Brazil. These credits can then be used towards the EU's goal. These credits, say their supporters, are an important way to raise money for projects that reduce CO2 emissions in developing countries. Some EU officials remain cautious. In 2013, the EU banned international credits on its carbon market after an influx of cheap credits that had weak environmental benefits led to a crash in carbon prices. ESABCC, despite geopolitical headwinds such as looming U.S. Tariffs and high energy costs, said that it would stick to its 2023 recommendation, which was for the EU to agree to a net reduction of 90-95% in greenhouse gas emission by 2040. This, they said, is achievable, and in line to global goals in order to avoid worse climate change. It would be necessary to have a power sector that is almost entirely free of emissions by 2040, and electrify industries that pollute. They said that this would have many benefits, including fewer pollution-related illnesses, a boost in investments for modernising industries, and improved security, as Europe would be less dependent on fossil fuel imports. (Reporting and editing by Kirsten Doovan and Hugh Lawson).
-
Russian seaborne diesel exports rise in May, data shows
According to LSEG and market sources, the increase in fuel production led to a rise in Russia's seaborne gasoil and diesel exports during May. Calculations based on data from the industry suggest that Russia's idled diesel production capacity is expected to be down 8.1% in May compared to April, to 1.6 millions metric tons, or 52,700 tonnes per day (around 392 088 barrels per day). The increase in fuel production and exports is a result of the lower idle production. Calculations based on data from LSEG, and other market sources, showed that diesel and gasoil exported from Russian ports in May rose to approximately 3.7 million metric tonnes, an increase of 7% compared to April. Shipping data shows that in May, the two main importers of Russian gasoil and diesel were Turkey and Brazil. Last month, the Russian ports exported 1.3 million tonnes of diesel and gasoil to Turkey, an increase of 15% over April. However, loadings to Brazil dropped by 14%, from 0.7 to 0.63 millions tons. Shipping data revealed that Russia's diesel and gasoil imports from Africa in May increased by 7% compared to the previous month, totaling about 0.83 millions tons. Ghana, Tunisia and Senegal were among the top four African importers. According to LSEG, a total of 0.35 million tonnes of diesel and gasoline from Russian ports is waiting for discharge on ships-to-ship transfers in the vicinity of Limassol. Shipping data showed that ships loaded with diesel in Russian ports in May, about 230,000 tonnes, had their destinations marked "for orders", which means their discharge points were either not known or not declared. Mark Potter, Mark Potter (Reporting in Moscow)
-
OPEC+'s crude production hike comes amid tepid Asian demand for oil: Russell
The crude oil markets pay attention to what OPEC+ has to say, but less so to what they actually do when it comes down to the supply of this world-famous commodity. Eight members of a wider group who had implemented voluntary production reductions met over the weekend to decide on a rise in output of 411,000 barrels per daily (bpd) for July, which would be the third consecutive month of this increase. Saudi Arabia, Russia, and the United Arab Emirates will each receive more than half the increase in production. There are still two questions to be answered. Will the eight parties to the agreement increase their output by the agreed-upon volumes? And if so, will they be able to find buyers for this additional oil? It's important to note that OPEC+ and most of the market talk about production. However, the key metric for setting the price is the export volume of crude oil. Saudi Arabia's exports were actually lower in April, at 5.75 million barrels per day, compared to March's 5,80 million barrels per day, according data collected by commodity analysts Kpler. Kpler data shows that Saudi Arabian exports jumped to 6.0 millions bpd by May and are expected even higher in June. This suggests that there's a delay between the output agreements and exports. The Russian crude oil exports by sea were 5,07 million barrels per day in March. They remained relatively flat at 5,12 million in April, and then dropped to 4,82 million in May. This shows that the increase in production agreed upon did not translate into increased shipments. INVENTORIES and DEMAND It is still unclear whether additional oil will be needed in Asia, the region that imports most oil. In a statement released after the May 31, OPEC+ reaffirmed its belief that the global oil markets have "healthy" foundations, "as reflected by low inventories." They have maintained this position since April, when they began to ease the voluntary production cuts of 2.2 million bpd. The Organization of Petroleum Exporting Countries' monthly report for the month of May shows that crude inventories rose by 21.4 millions barrels in March to 1.323 trillion barrels. This is 139,000,000 barrels less than the annual average between 2015 and 2019. The Organization for Economic Cooperation and Development inventories are below pre-COVID levels, and were rising even before OPEC+ began increasing output. Inventories are not as visible outside of the OECD, especially in China. China is the largest crude oil consumer worldwide. Although China does not disclose its commercial and strategic stocks, it is possible to estimate the surplus crude by subtracting the volume of refined oil from the total domestic production and inventory. China's oil surplus has risen in recent months. It reached 1.98 million barrels per day in April, its highest level since June 2023. This is up from 1.74million barrels per day in March. China has increased its oil imports since March and April, as it procured discounted cargoes of Iranian and Russian crude. In May, China's appetite has reportedly waned despite lower global crude prices. Kpler estimates that China's seaborne exports were 9.43 million barrels per day in May, down from 10.46 in April and 10.45 in March. ASIA IMPORTS China's lower appetite in May led to a decline in arrivals in Asia. Kpler estimates 24.2 million bpd. This is down from 24,85 million bpd. in April. Asia's crude oil imports by sea are estimated to be 24.45 millions bpd for the first five month of this year. This is down 320,000 bpd compared to the same period in the previous year. The demand for oil in Asia has not increased despite a near 30% decline in Brent crude futures from mid-January to the lowest price of the year, $58.50 per barrel, on May 5. The impact of lower oil prices is still being felt. While demand could rise in the coming months due to cheaper oil it's possible that economic uncertainty caused by President Donald Trump's tariff war has crimped fuel consumption. Brent futures rose by over $1 on Monday to $63.84 per barrel. The increase in prices indicates that the market was expecting a higher output from the OPEC+ eight-member group for July. The Trump trade war has created distortions that have a significant impact on the outlook for demand. There is uncertainty about the future of supply and whether OPEC+ top producers will seek to increase export volumes or compete for market share. These are the views of a columnist who writes for.
-
Aluminum premiums for US buyers rise after Trump doubles tariffs
The price of aluminium in the United States has risen dramatically since Donald Trump announced that he would increase the tariffs from 25% to 50% on imports of steel and aluminum. The U.S. heavily relies on imports of aluminium. Around half of the aluminium used for transportation, packaging, and construction in the U.S. is imported, the majority from Canada. The new tariffs will be in effect from June 4. On the physical market, buyers pay the London Metal Exchange benchmark price for aluminium plus a premium to cover taxes, transportation and handling costs. On Monday, the duty-paid aluminum premium in the Midwest of the United States reached $0.58 a lb or $1,279 per metric ton. This was a 54% increase from Friday, and a 164% growth rate since 2025. The fact that Monday was the first trading day in a new month, which is when regional premiums are often at their strongest, contributed to the growth. Goldman Sachs estimated that the premium needed to increase to $0.68 to $0.70 per lb in order to reflect the import tariff of 50%. LME benchmark aluminum was last up by 0.2%, at $2448.5 per ton. (Reporting and editing by David Goodman.
-
Brazil's vast forest is managed by "conservation mosaics".
Brazil has 40% public natural areas The "mosaics", or contiguous conservation units, are grouped together. Regional policies are articulated by local governments, NGOs and communities By Andre Cabette Fabio Borges, speaking on her porch near the Negro River in Ecuador, said that her company, Yara Amazonas has partnered with loggers so they can extract oil and seeds from the forests instead of cutting down trees. Yara Amazonas, a sustainable initiative within the Lower Negro River Mosaic of Protected Areas (a group of 14 Conservation Areas established between 1980 and 2018 covering an area greater than Ireland), is one of dozens in the Lower Negro River's mosaic of protected zones. Henrique Pereira is a professor of the National Institute of Amazonian Research. He said that the federal government created the mosaic system to help manage natural reserves which overlap or are contiguous. The councils of Brazil's 27 Mosaics are made up of members from the community and administrators at the federal, state, and municipal levels. They help to fight land-grabbers and loggers as well as illegal farmers and they allow funds to trickle to initiatives on the grounds. In Brazil, the management of public areas is a massive task. From national parks with strict rules that prohibit people from living there to Indigenous territories and settlements, for sustainable development. According to a government assessment of 2024, these areas cover about 40% of the nation's land, an area bigger than India. They are governed under a variety rules and jurisdictions. Brazil is preparing for the COP30 U.N. Climate Change Conference in the Amazonian city of Belem, in November. This will raise expectations about new funding and actions to protect Brazil's natural environment as well as help communities. Brazilian authorities claim that a severe drought in Amazon has contributed to food insecurity. Wildfires also played a significant role in the record-breaking global forest losses last year. Scientists claim that deforestation compounds the effects of climate changes, and threatens to transform large areas of Amazonia into drier ecosystems. Marcos Pinheiro said that the mosaic councils help members to exchange information and gain strength in order to make conservation efforts effective on the ground. Puranga Conquista, an 86,000 hectare area that forms part of the Lower Negro River mosaic, is home to over 800 families. From Manaus, the capital of Amazonas state, where the Lower Negro River Mosaic can be found, take an hour-long trip on the Negro River. The river is flanked by lush jungle and a few wood houses. Settlers receive land in batches and can cultivate crops, harvest seeds, fish and fruit, or extract timber and wood under strict environmental regulations and a community-agreed plan. LAND RIGHTS IS KEY It hasn't always been like this. Puranga Conquista, when it was first protected by the government in 1995 was classified as a part of state park. Human settlement was also banned. Francisco Borges, Elisangela’s father and member of the Mosaic’s Council, said that people who lived there for years could have been evicted. In 2000, with the support of other mosaic members, the community launched a campaign that was successful in 2014, persuading the authorities to reclassify this area as a reserve for sustainable development, so the people could continue living there. Francisco Borges said, "A request from the council of the mosaic is more powerful than one from a single reservation." After communities successfully lobbied for an area to be recognized as a sustainable settlement, the Lower Negro River Mosaic has gained 580,000 additional hectares in 2018. Securing communal land rights, say environmentalists, is crucial to stopping deforestation. It discourages people clearing public forests and using the land for private farms. The Amazon Fund is an international mechanism that supports projects to stop and reverse deforestation. It has funded production by Yara Amazonas, and three workshops where local Indigenous people produce handicrafts. The Lower River Negro Mosaic also includes numerous other initiatives, such as youth groups, fire brigades and furniture workshops, in addition to preserving turtle populations. POLITICAL HEADWINDS These initiatives haven't always been backed by the political establishment. Pinheiro from REMAP said that many conservation mosaics helped communities to engage in territorial protection even during political turmoil. The far-right Brazilian government led by President Jair Bolsonaro saw a significant increase in deforestation between 2019 and 2022 as they dismantled their environmental policies. The Lower River Negro Mosaic Council continued to operate under the radar. Pinheiro explained that "they understood that it was just a passing storm, so everyone kept quiet." However, the political challenges have not disappeared. A bill that will loosen the rules for environmental licensing is currently being debated in parliament. Brazil's powerful agribusinesses are in favor of the change. However, environmental NGO Instituto Socioambiental says it will allow developers to ignore the impact of road, rail, hydropower dams, and other projects on areas protected. Elisangela Borges stated that Brazil has vast potential for development, but it can be done without harming the environment.
-
EU advisors warn against lowering new climate goal
Independent advisers to the European Union have warned against lowering the planned climate goal for 2040, while EU officials are considering a softer target in order to curb a political backlash towards ambitious environmental policies. In July, the European Commission will propose a legally-binding target for EU countries to reduce their emissions by 90 percent by 2040 compared to 1990 levels. Brussels, however, is considering options to overcome the pushback of governments. These include setting a lower goal for domestic industries and using international credits to bring up the gap. The European Scientific Advisory Board on Climate Change, or ESABCC, warned against this strategy, saying that it could divert funds from investments into European industries and infrastructure. In an analysis of 2040's target published on Monday, the ESABCC stated that using international carbon credits, even partially, would undermine the creation of domestic value by diverting resources away from the transformation needed in the EU economy. A spokesperson for the Commission did not respond immediately to a comment request. Carbon credits are a way for EU countries to buy credits from projects abroad that reduce CO2 emission - such as forest restoration in Brazil. These credits can then be used towards the EU's goal. These credits, say their supporters, are an important way to raise money for projects that reduce CO2 emissions in developing countries. Some EU officials remain cautious. In 2013, the EU banned international credits on its carbon market after an influx of cheap credits that had weak environmental benefits led to a crash in carbon prices. Despite geopolitical challenges, looming U.S. Tariffs and high energy costs, the ESABCC has said that it will stick to its 2023 recommendation, that the EU agrees to a 90%-95% reduction in greenhouse gas emission for 2040 – which it says is achievable and in accordance with global goals in order to avoid worse climate change. It would be necessary to have a power sector that is almost entirely free of emissions by 2040, and electrify industries that pollute. They said that this would have many benefits, including fewer pollution-related illnesses, a boost in investments for modernising industries, and improved security, as Europe will be less dependent on fossil fuels imported. (Reporting and editing by Kirsten Doovan; Kate Abnett)
-
Venezuela increases taxes on the private sector after Chevron's exit
Business leaders and analysts predict that Venezuela's government will increase taxes and charges for public services on the private sector in order to compensate the decline of oil revenues after the tightening of U.S. Sanctions. Washington canceled in February key licenses that allowed a few partners and customers of the state oil company PDVSA to export Venezuelan crude oil under U.S. sanctions exemptions. The United States also imposed secondary duties on Venezuelan oil buyers. Analysts estimate that these actions could reduce OPEC's oil revenue, which is estimated to be around $15 billion by 2024, approximately 30%. A dozen businesspeople said that the government has reacted to this anticipated revenue loss by requiring advance tax payments, conducting more audits and imposing significant fines. It also allows local authorities and providers of public services to increase their fees. These measures put pressure on a private sector that has been struggling with economic crisis for years, high inflation and currency controls. Requests for comments were not responded to by the Finance Ministry, Communications Ministry or Tax Agency. In January, President Nicolas Maduro had asked officials to double the tax revenue from $5.2 billion in last year. Tax revenues increased by around a fifth during the first quarter. Maduro’s government has rejected U.S. Sanctions, calling them an "economic War". Three sources claim that businesspeople have met with the government to try to get some taxes revised. In a survey conducted by Conindustria in May, which represents food, chemical, plastics, and textile producers, 77% of respondents cited the tax burden as their primary obstacle. Around 60% of those who responded to the survey plan to increase production little or no in the next few months. Luigi Pisella said that any additional taxes paid would come out of the working capital. He said that the tax base should be broadened to prevent the burden being concentrated on existing businesses. One industrialist who requested anonymity said, "Those who are able to manage a little bit of growth can manage this adverse climate." LIFESAVER Jose Vielma, a member of the ruling party, praised the increase in tax collections. Vielma said that a higher tax revenue has allowed for the economy to be able to recover from difficult times. "We owe the private sector a debt of gratitude for its contribution." Analysts are more direct. Luis Barcenas is an economist with the Venezuelan company Ecoanalitica. He said, "Taxes save lives for governments." The firm estimates that the tax revenue could reach $13 billion in this year, and that businesses are dedicating half of their earnings to paying taxes. Conindustria's survey revealed that larger companies do not anticipate an increase in jobs. However, medium-sized businesses said they may reduce their headcount by 1%. One businessman said, "When you lack working capital you can't create jobs." Some sources, particularly from the retail industry, have said that they are closing down stores due to lower sales. A businessman in central Venezuela said that municipal taxes also have a significant impact on the prices. Local manufacturers often have factories in multiple municipalities, which means they are subject to higher local taxes than the few international companies that remain in Venezuela and import products or only have limited factories within the country. The director of an unnamed foreign company said that the impact was even greater for companies with local production. According to the Venezuelan Finance Observatory, the Venezuelan Finance Observatory, the Venezuelan Finance Observatory, the Venezuelan Finance Observatory, the Venezuelan Finance Observatory, the prices of the outage-prone services have doubled since March. By 2025, inflation, which was 48% last year, is expected reach 200%. Christian Plumb, Nia Williams and Christian Plumb are responsible for the reporting.
-
Dollars slide on trade and tax concerns
As June began, the U.S. Dollar plunged to its lowest level since six weeks. Concerns about U.S. Tariffs were back in the spotlight after the legal confusion of last week and rising military tensions around the world. The euro was the leader, unfazed by the prospect that the European Central Bank would cut interest rates again on Thursday. The new German chancellor Friedrich Merz will visit Washington on Thursday to meet U.S. president Donald Trump as trade negotiations between Europe and America continue to be closely watched. The dollar is susceptible to fears of foreign capital flight as markets are still concerned about the U.S. Fiscal Bill that is currently being debated in the Senate. This bill gives the administration the ability to tax companies and investors who come from countries with 'unfair' foreign taxes. On Monday, the focus was back on tariffs. It seemed that President Donald Trump would push for levies in some way despite last week's legal opposition. After the weekend, Trump's plan of doubling duties on import steel and aluminum from Wednesday to 50% hit the greenback as Beijing retaliated against allegations that it had violated an agreement regarding critical minerals shipments. The weekend was marked by geopolitical tensions of great importance and bellicose threats. Gold rose. Pete Hegseth, the U.S. Secretary of Defense, warned his Indo-Pacific allies on Saturday to increase their spending on defence. Ukraine-Russian war continues to rage. Ukrainian drones continue to strike dozens of Russian aircraft deep within Russian territory. Gaza's conflict is not ending. The major countries are building weapons at a rapid pace. Britain is expanding its fleet of nuclear-powered attack subs as part a review of defence, aimed at preparing the country for modern warfare and countering the Russian threat. The oil price rose by about 3% Monday, after the producer group OPEC+ maintained its output increase in July at the level of the previous two month. There was some good news on the interest rates front in a week that saw a lot of data from the U.S. Labor Market. Federal Reserve Governor Christopher Waller stated on Monday that further rate cuts are possible in the second part of the year. Waller said that since the rise in inflation pressures linked to Trump's increased import taxes is unlikely to persist, he supports looking past any tariff effects to near-term-inflation in setting policy rates. As expected, China's manufacturing sector shrank in May for the second consecutive month. After Karol Nawrocki, the nationalist candidate of the opposition won the second round in the presidential elections, stocks in Poland fell by 1.4%. Before Monday's bell rang, U.S. stocks futures were down by about half a percentage, and so too were stocks in Europe, Japan, and other parts of the world. The yields on U.S. Treasury bonds have risen again. The column today looks at this week's major monetary decision made in Europe. It is widely expected that the European Central Bank will lower rates for an eighth time during the cycle, but the euro has risen regardless. EURO CONUNDRUM: ECB FACES SURGING EURO DISCONNORDRUM The euro continues to rise while the European Central Bank is cutting rates. This is because a capital reversal in the US has thrown off the relative rate shifts, and could force the ECB to further ease. It is expected that the ECB will lower its main lending rate to 2% on Thursday, which would be half of what it was a year ago at its highest point and less than half of the Federal Reserve's equivalent. The central bank has also returned to a level it considers to be 'neutral,' meaning that the rate does not either stimulate or rein in the economy. For the first time since almost two years, real, or inflation adjusted, ECB interest rates will return to zero. It's amazing that the euro, after eight consecutive ECB rate cuts and the prospect of zero real rates or even negative ones in the future, has risen more than 10% against a dollar basket and 5% against a currency basket based on the major trading partners of the Euro Zone. The nominal effective euro index has reached record levels, while the "real" version is at its highest level in over 10 years. The euro/dollar rate has risen despite no change in the difference between the yields of two-year government bonds on either side. This is usually a reliable indicator for changes in the exchange rate. This trend is largely due to Donald Trump's trade wars, the fear of capital flight out of dollar assets because of a variety of concerns regarding U.S. institutions and policies, and Germany's historical fiscal boost. The ECB is in a quandary if, as many believe, even a fraction (or fractions) of the trillions dollars of European capital invested in the United States are indeed returning home. How can it manage both the deflationary and domestic demand effects of a currency increase that is so rapid? The euro is not affected by the possibility of future rate cuts. The majority of ECB observers expect one or even two more rate cuts after Thursday, while money markets are predicting a 'terminal' rate of around 1.75%. This is the low end in the ECB range estimated as 'neutral. If the majority of capital repatriation is from equity investments in the U.S., lower ECB interest rates could even increase the outflows by boosting growth prospects for cheaper European stocks. Higher borrowing in Germany and across Europe should also sustain fixed income returns over the long term, increasing the pool of "safe" investments. 'GLOBAL EUROMOMENT' The ECB may protest about 'excessive gains' in the euro, but the impact could be limited unless they are prepared to back up their words with actions. There is also a chance that it could backfire because of the reasons mentioned above. The ECB is encouraging investment and the euro as a currency of reserve, in part, to meet the massive capital requirements for retooling the military, digital, and energy sectors. Christine Lagarde, ECB head, said in a speech last week in Berlin that there is an opportunity for a global euro moment, where the single currency can be a viable alternative to dollars, bringing immense benefits to the region if the governments are able strengthen the financial and security infrastructure of the bloc. A soaring currency rate during a trade conflict may seem like a good thing, but it will cause some concern among the major exporting countries in the region. ECB hawks, doves, and others will have to decide whether the continued easing of monetary policy to counter disinflationary risks is only stoking domestic inflation in the long run. Not to mention the fiscal boost that's coming next year. It is clear that the ECB will take into account in its new economic projections, due to be released on Thursday, the 7% increase in the euro/dollar rate and the near 10% decline in the global oil price since the last set of forecasts made in early March. Morgan Stanley economists believe that even if central bank raises core inflation forecasts, headline inflation could still fall short of the 2% target between mid-2025 and early 2027. This is even though the GDP growth outlook for 2025 has been revised upwards. At this point, it is impossible to make any predictions. Few central banks or major traders have any idea where the U.S. trade war or tariffs will lead. The ECB is unlikely to be able to cap the Euro, as global trade and investments are a source of anxiety. The ECB is faced with a big dilemma: whether to maintain the status quo or ease up even further. The chart of the day shows how tariff-related import distortions have distorted U.S. Gross Domestic Product readings this year. Last week, models that track GDP inputs were again jarred when a sharp contraction of the goods trade deficit in April occurred as the front-running imports to beat the tariffs in the 1st quarter faded. According to the Census Bureau of the Commerce Department, with many tariffs in effect, imports plummeted, helping to reduce the goods trade surplus by 46%, to $88 billion. Imports dropped $68 billion, to $276 billion. Exports rose $6.3 to $188.5. If the goods deficit shrinks, the net trade component in GDP calculations could spur significant growth in this quarter. It is similar to how it reduced Q1 GDP by a record-breaking 4.9 percentage points. The Atlanta Federal Reserve’s ‘GDPNow’ tracker is now boosted by the trade figures. It sees an impressive 3.8% real GDP increase in Q2. There is still caution. There is caution. Businesses don't appear to be restocking. Wholesale inventories were unchanged last month, and retail stocks fell by 0.1%. Stockpiles are expected to drop dramatically over the rest of the quarter. Watch today's events * US manufacturing surveys for May from S&P Global and ISM (0930EDT), as well as April construction spending (1000EDT). * Federal Reserve chair Jerome Powell opens Fed event in Washington. Fed Board Governor Christopher Waller and Dallas Fed President Lorie Log speak. Chicago Fed President Austan Gollisbee also speaks. Bank of England policymaker Catherine Mann also speaks. * US corporate earnings: Campbell's The opinions expressed are solely those of the authors. These opinions do not represent the views of News. News is committed to the Trust Principles and therefore, integrity, independence and freedom from bias.
Impossible Metals, a deep-sea mining company, seeks a mining lease near American Samoa
Impossible Metals, a deep-sea miner, said Tuesday that it had asked U.S. Federal officials to launch an auction to gain access to nickel, cobalt and critical minerals offshore of American Samoa.
Estimates suggest that the waters surrounding the Pacific Ocean contain large quantities of polymetallic nodules, or potato-shaped rocks filled with building blocks for electronic vehicles and electronics.
Impossible Metals, a privately-held company, has asked the U.S. Department of Interior's Bureau of Ocean Energy Management (which oversees federal waters for mineral deposits) to launch a lease process that is competitive for the American Samoa Nodules.
A BOEM spokesperson confirmed that the request was made and stated the agency would decide "by May 23 whether to initiate steps which could lead to a leasing sale." Since 1991, the agency hasn't held a lease sale.
Before any auction, if the BOEM decides that it will move forward, a request for public comments would be made.
Deep-sea miner supporters say that it will reduce the need for large land-based mining operations, which are not always popular with local communities. Detractors claim that more research is required to determine the impact of deep-sea mining on ecosystems.
Impossible Metals, based in California, has developed a robotic claw with artificial intelligence that can distinguish between nodules (mineral deposits) and aquatic life.
Deep-sea mining is allowed in any country's territorial waters up to approximately 200 nautical miles away from the shore.
The California-based Impossible Metals doesn't need to ask permission from the International Seabed Authority, created by the United Nations Convention on the Law of the Sea which the U.S. does not ratify.
Last month, it was reported that the White House has been considering an executive order that would allow mining companies to bypass the ISA if they wanted to mine in international waters.
(source: Reuters)