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Phillips, a Democrat, resigns as a member of the US Energy Regulatory Panel
Willie Phillips resigned as a Democratic Commissioner on the U.S. Federal Energy Regulatory Commission on Tuesday. This opened the door for Donald Trump to nominate a new member, giving the five-member commission a Republican majority. The resignation of Phillips, whose term had been set to go through June 30, 2026, allows Trump to nominate a Republican who would likely be easily confirmed by the Republican-controlled Senate. Trump's focus is on increasing oil and gas production and opening pipelines that will bring gas from Pennsylvania into the U.S. Northeast. New York politicians blocked the Constitution Pipeline, which would have transported gas from Pennsylvania. It's unclear what Trump can do to make the pipeline work. Politico reported Phillips' resignation plans before the White House even asked him. Phillips served as chairman under former president Joe Biden. The White House didn't immediately respond to an inquiry for comment. In a press statement, Mark Christie, the Republican Trump appointed as FERC chairman on his first day of office in his second-term, said: "We will miss his presence here at FERC." "I wish him, his family and future success. I'm confident that he will be successful no matter what career path he chooses." Phillips stated in a press release that the grid is facing increasing challenges due to the surge in demand from data centers and a lack of construction for new power plants. Phillips stated, "These complex problems demand bold, creative solutions and I look to continue working on them in my next chapter." (Reporting and editing by Alistair Bell; Timothy Gardner)
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US pays part of the loan to Michigan nuclear plant for restart
The Energy Department announced on Tuesday that a Michigan nuclear reactor, which hopes to be the United States' first to restart after permanent shutdown, has received approximately 10% of the $1.52 billion U.S. funding approved during former president Joe Biden’s term. The Department's Loan Programs Office approved the disbursement of nearly $47 Million of the loan guarantee for the Palisades Nuclear Plant Holtec Inc hopes will reopen this year. The loan guarantee, which was approved by Biden's administration, was a conditional loan that was made to Palisades. This was the second time the Trump administration has disbursed money. The original loan guarantee of more than $150 million has already been paid out. Energy Secretary Chris Wright stated in a press release that the Energy Department was working to ensure America’s nuclear renaissance would be just around the corner. Many politicians, from both major political parties, support nuclear energy as electricity demand is on the rise for the first two decades. This is due to artificial intelligence, cryptocurrency and electric vehicles. Entergy, a Michigan-based power company, closed its 800-megawatt Palisades nuclear reactor in 2022 after it had produced electricity for over 50 years. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save nuclear power plants from increasing costs. Holtec needs to get permits from the Nuclear Regulatory Commission before they can reopen Palisades. Holtec is currently repairing the steam generators in the reactor, as the standard maintenance procedure was not followed during the shutdown. A source stated that the LPO had hundreds of billions of dollars in available financing. However, the Trump administration will likely use this financing more narrowly than did the Biden administration, and approve loans mainly for nuclear power and the development of critical minerals. About 100 of the 220 employees who worked at LPO have left since Trump's administration.
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United Steelworkers union remains 'unalterably against' US Steel-Nippon agreement
The United Steelworkers told Treasury Secretary Scott Bessent that it is "unalterably opposed" to a $15-billion bid from Japan's Nippon Steel for U.S. Steel or any deal which would give Nippon power over the company. USW President David McCall wrote to Bessent late on Monday, saying that the union didn't believe any of the mitigations proposed during the initial Committee on Foreign Investment in the United States review (CFIUS), which was conducted on the deal. McCall's letter to Nippon Steel Corporation, which was seen by McCall in its entirety, stated that "we remain unalterably against the acquisition of United States Steel by Nippon Steel Corporation." Treasury Department did not immediately respond to a request for comment. McCall stated that the union's concern had grown since former president Joe Biden blocked this deal in January. He noted that Nippon was continuing to engage in practices which fueled global overcapacity, including by holding 1 million tons in China via joint ventures. He said that in a previous administrative review of Non-Oriented Electric Steel from Japan, the U.S. Commerce Department assigned Nippon a preliminary tariff rate of 205% this month. McCall stated that Nippon appeared to be preparing to divest certain U.S. Steel Assets and failed to commit in multiple meetings to maintain production at plants located in Pennsylvania's Mon Valley and elsewhere. Donald Trump, the U.S. president who assumed office for the second term on January 20, stated that he "wouldn’t mind" Nippon Steel taking a minority stake U.S. Steel. This implied he would want to overhaul the deal structure. Last month, he asked CFIUS to review the U.S. Steel all-cash offer to determine whether "further actions" were appropriate. Trump has said repeatedly that he doesn't think a foreign firm should control U.S. Steel. The two companies say they are working with his administration closely to "secure an important investment." (Reporting and editing by Andrea Shalal)
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Investors assess Trump's comments about Fed chief as stocks jump and dollar inch up
The dollar edged up on Tuesday, even as investors assessed U.S. president Donald Trump's criticisms of Federal Reserve Chair Janet Yellen. The yields on U.S. Treasury Long-Term Bonds fell after rising on Monday. Investors were also closely watching the first-quarter results of U.S. firms. The shares of 3M Co, an industrial conglomerate, rose 8% following the company's first-quarter earnings beating expectations. However, it also noted that tariffs would likely affect its 2025 profits. Bloomberg reported that U.S. Treasury secretary Scott Bessent said that a tariff standoff between the United States and China is unsustainable. He expects that the situation will de-escalate. Trump intensified his criticism of Fed chair Jerome Powell, calling him a'major loser' in a Monday social media post. This raised concerns over Trump’s influence on the central bank, and increased concerns about U.S. financial stability. Investors are concerned that the White House may try to replace Powell by someone who will lower rates. Trump stated last week that he believed Powell would leave his position if Trump asked him to, despite Powell's own statement. Although it is not clear whether Trump has the power to fire Powell. However, lawsuits filed by Trump over other firings are being monitored as possible proxy. Stocks are down overall, but this is not a "fire sale" where you should get rid of all your stocks. Oliver Pursche is senior vice president and adviser at Wealthspire Advisors, Westport, Connecticut. All of the soft data (economic data) are declining, but the hard data continue to be strong. Investors are struggling with this, he said. Investor confidence is already shaken by Trump’s constant back and forth announcements about tariffs. They are worried that this could cause a severe disruption to world trade, as well as hurting the economy. The International Monetary Fund slashed their growth forecasts on Tuesday for the United States and China, citing U.S. Tariffs that are now at 100-year levels. The Dow Jones Industrial Average rose by 882.96, or 2.32 %, to 39,053.37. The S&P 500 gained 118.58, or 2.30 %, to 5,279.14. And the Nasdaq Composite gained 425.76, or 2.58%, at 16,296.66. Tesla shares, which are due to announce quarterly results after closing bell, have risen by 5.8%. Apple and other mega-caps were also up, with Apple gaining 3.6%. Coinbase Global shares rose 8.3%, as bitcoin continued its recent gains. Bitcoin's last gain was 4.07%, at $90 887 19. The MSCI index of global stocks rose by 11.73 points or 1.50% to 794.84. The pan-European STOXX 600 ended the day up 0.25%. The dollar has recovered slightly, but is still near its multi-year lows against the euro and Swiss franc. The dollar index (which measures the greenback versus a basket including the yen, the euro and others) rose by 0.49%, to 98.83. However, the euro fell 0.68%, to $1.1435. The dollar gained 0.28% against the Japanese yen to reach 141.24. The dollar and yen had earlier reached a seven-month peak. The dollar gained 1.01% against the Swiss Franc, a safe-haven currency. Analysts noted that the dollar is still fragile, despite concerns about the U.S. tariffs. Gold reached a new all-time record of $3,500.05 in the morning, due to the recent weakness of the dollar and the demand for safe havens. Gold spot was down last by 0.83%, at $3396.43 per ounce. Oil prices rose as a result of new U.S. Sanctions against Iran, and rising stock market. U.S. crude oil rose by 2.85% to $64.88 per barrel. Brent increased to $67.77 a barrel, an increase of 2.28%. The yield on the benchmark 10-year U.S. notes dropped 1.4 basis points from late Monday to 4.391%.
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Phillips, a Democrat, resigns as a member of the US Energy Regulatory Panel
Willie Phillips resigned as a Democratic Commissioner on the U.S. Federal Energy Regulatory Commission on Monday. This opened the door for Donald Trump to nominate a new member, giving the five-member commission a Republican majority. The resignation of Phillips, whose term had been set to go through June 30, 2026, allows Trump to nominate a Republican who would likely be easily confirmed by the Republican-controlled Senate. Trump's focus is on increasing oil and gas production and opening pipelines that will bring gas from Pennsylvania into the U.S. Northeast. New York politicians blocked the Constitution Pipeline, which would have transported gas from Pennsylvania. It's unclear what Trump can do to make the pipeline work. Politico reported Monday that Phillips had told the publication that he was already planning to resign even before the White House requested him to do so. The White House didn't immediately respond to an inquiry for comment. In a press statement, Mark Christie, the Republican Trump appointed as FERC chairman on his first day of office in his second-term, said: "We will miss his presence here at FERC." "I wish him, his family and future success. I'm confident that he will be successful no matter what career path he chooses." (Reporting and editing by Alistair Bell; Timothy Gardner)
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Chile advances lithium projects on three salt flats
The mining ministry announced on Tuesday that the Chilean government is moving ahead with a simplified procedure to award contracts for lithium in three salt flats. The agency announced that it had accepted applications from Eramet for the Agua-Amarga salt plain; Eramet, Quiborax and the state-copper giant Codelco for the Ascotan Salt Flat; and the Caliche Kairos Consortium for the Coipasa Salt flat. The leftist president Gabriel Boric has introduced a plan that will increase state control of lithium, which is a key metal in electric vehicles and energy transition in 2023, and create public-private partnerships in order to expand this industry. Plan included state-controlled joint enterprise between Codelco, the largest lithium miner in the country, and SQM. It also included opening up of other salt flats to development. The mining ministry announced on Tuesday that if the applicants are in agreement, the contract would be signed once the indigenous consultations have been completed and all other conditions of the CEOL (a special permit for lithium mining) are met. The statement stated that "public bidding processes would be initiated if this is not the case, as it was with the Ollague Salt Flat in the Antofagasta Region, Piedra Parada, and Laguna Verde, in the Atacama Region." To qualify for an expedited process, the parties must demonstrate ownership of a mining concession, financial capability, and experience in the mining industry or value chain. A statement noted also that Codelco's dialogue with indigenous communities to modify an CEOL on the Maricunga Salt Flat had ended. The statement stated that "all that is left to do is publish the closing resolution which will include all 11 agreements that were reached with the six community participants in the process." (Reporting and editing by Alexander Villegas, Alistair Bell and Fabian Andres Cambero)
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US defense contractors largely maintain forecasts despite Trump Tariffs
The major U.S. defence contractors have mostly maintained their financial forecasts through 2025. They say it's too early to know the impact of U.S. president Donald Trump's tariffs. Lockheed Martin, America's largest defense company, confirmed its projections for the coming year, thanks to a resilient demand for fighter jets and missile systems. Northrop Grumman, on the other hand, said that its profit margins could shrink, but it stuck to its sales forecast, showing some confidence in spite of trade tensions. Northrop CEO Kathy Warden said to analysts that she did not believe there was a significant risk for the company at this time. We're going monitor that closely, and we're taking action now to account for and minimize the risks we do see. RTX Corp (formerly Raytheon Technologies) broke ranks and expressed concern over the potential loss of $850 million due to new tariffs on metals, China, and other countries. This divergence shows the different impacts of trade policy across the commercial and defense aerospace sectors. RTX is a large aerospace company that manufactures jet engines and interiors. As with other industries with complex manufacturing, the defense industry is also grappling with potential trade war effects. This situation has put pressure on an already stressed supply chain and forced companies to reassess strategies and cost structures. Despite these challenges the sector continues benefiting from an increase in global demand for weaponry, fuelled by the Russian War in Ukraine and the conflict in the Middle East. This increased demand has helped to offset some of trade dispute uncertainties. RTX's concern shows that the industry isn't immune to trade pressures. It also highlights the interplay complex between economic policies, international relations and defense spending. Defense Secretary Pete Hegseth suggested in a social media post on April 7, that a higher U.S. Defense budget would benefit contractor revenues and provide some stability and growth despite an uncertain economic outlook. Trump's review, which aims to ease restrictions on military equipment export, could boost revenue for U.S. contractors. This comes at a time when some allies are reconsidering the reliance they have on U.S. military equipment because of trade tensions and changing geopolitical relationships. The European Union is planning to strengthen its own defense capabilities by 2030 to reduce its reliance on the U.S., which could mean that companies outside of the bloc will have a smaller role. Northrop Grumman reported a 49% decline in its first-quarter profits and missed sales targets. The U.S. contractor also booked losses on the B-21 stealth aircraft program due to increased manufacturing costs. This sent its shares down by 12%. Lockheed's first-quarter profits were higher, which boosted shares by more than 2%. Lockheed's quarterly earnings per share, which came in at $7.28, beat Wall Street analysts' expectations of $6.34. Collins Aerospace (RTX's aerospace and avionics division) posted an 8% increase in revenue, reaching $7.22 billion, in the third quarter. Meanwhile, Pratt and Whitney, which produces engines for Airbus A320neo aircraft, saw sales grow 14%. Raytheon's defense division, RTX, reported a 5% drop in sales from the previous year, mainly due to its divestiture of cybersecurity, intelligence, and services businesses completed last year. (Reporting and editing by Rod Nickel in Washington)
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Bank of America shareholders approve executive compensation and elect directors
Bank of America shareholders approved pay packages for CEO Brian Moynihan, the lender's top executive and elected 14 directors to the board on Tuesday. Institutional Shareholder Services, a proxy adviser, had advised investors to vote against the payouts. They expressed concerns over the process that was used to determine the compensation. Moynihan's earnings for the last year increased by about 21%, to $35 million. The board of directors credited him for increasing the company's net income by 2.3% and revenue by 3.4% last year. Moynihan stated that any impact the tariffs will have on the bank is indirect, depending on the effects of a trade conflict on the economy. He said: "The impact on our Bank will be the economic impact of trade war... so, if you think that consumption drops and that results in a reduction in force of employees that would increase unemployment rate." Earlier this month, the administration of Donald Trump announced, and then paused, tariffs on dozens countries, throwing global economic uncertainty. Moynihan said that his bank's economists do not expect a recession in this year. However, they believe the Federal Reserve won't cut rates due to the sticky inflation. A question regarding the Trump risk Sacked Fed Chair Jerome Powell said that an independent central banks is important to U.S. consistency. Trump intensified his criticism of Fed chair Powell, calling him a'major loser', in a post on social media made Monday. This raised concerns over the president’s influence over central bank. BofA shareholders voted also on other management-related proposals but rejected each individual shareholder proposal. The board was asked to report annually on its lobbying activities and its efforts to influence policy in relation to its 2030 targets for sectoral emission reductions and its 2050 target of net zero emissions. BofA has Joined other major U.S. Banks In recent months, the Net Zero Banking Alliance has been one of the top climate coalitions for the banking sector in the world. BofA's first-quarter profits surpassed expectations as its interest income increased and volatile stock markets helped their traders make a record haul. (Reporting and editing by Margueritachoy, Saeed Azhar, Arasu Kanagi Basil)
Western miners push for higher metals rates to ward off Chinese competitors
CHALLIS NATIONAL FOREST, Idaho, July 22 (). T he only U.S. cobalt mine sits fallow in the northern Idaho. woods, a mothballed hunk of steel and dirt that is too costly. for its owner to operate since Chinese rivals have flooded. international markets with inexpensive supplies of the bluish metal used in. electric vehicle batteries and electronic devices. Jervois Global, which dug the mine into the side of a. almost 8,000 foot (2,400 meter) mountain, saw helplessly. last year as cobalt costs plunged after China's CMOC. Group opened the Kisanfu mine in the Democratic. Republic of Congo, pressing international production of the metal to an. alltime high. The Idaho site, which Jervois bought in 2019, was idled in June. 2023 just weeks before it was set to open. More than 250 workers. lost their tasks. A skeleton crew now rotates unused rock. squashing equipment weekly to keep it from flattening under its. own weight. We were uncomplicated with our personnel and informed them: 'This is. all about the cost of cobalt,' site supervisor Matthew Lengerich. told throughout a check out to the facility. Jervois states cobalt. rates need to reach at least $20 per pound for the website to. open. However rates sat near $12.17 in July. A comparable quandary deals with BHP, Albemarle and. other Western mining companies attempting to compete with metals. produced by Chineselinked companies, a few of which use. coalgenerated electricity, kid labor or other practices not. fulfilling the requirements set by many governments and. producers.
Western miners say their competitors have intrinsic cost. benefits that enable rapid production growths even as. rates for cobalt, lithium and nickel have plunged more than a. 3rd in the past 18 months. Operational costs for many of these. Western companies have, as a result, been surpassing what market. prices will cover. That has actually fueled growing calls from some policymakers and miners,. consisting of Jervois and Albemarle, for a two-tier rates system. with a premium for sustainably produced metals, according to. interviews with more than 3 lots traders, financiers,. executives, buying agents, and pricing companies.
The strategy is to charge more for a metal that is produced. sustainably, whether that is through direct deals or via. numerous costs for a metal listed through futures exchanges,. depending on production approaches. For instance, there would be one. rate for standard nickel and another for green nickel.
Western miners just can't compete with China, and China. has revealed the willingness to drive market prices method, way down,. stated Morgan Bazilian, director of the Payne Institute for Public. Policy at the Colorado School of Mines.
Two-tier rates could significantly move how metals needed for. energy transition have actually been bought and offered for centuries yet. likewise reduce market transparency as miners might bypass metals. exchanges to work out straight with consumers.
It could likewise, 2 experts informed , cause numerous. definitions of just what makes up green metal.
' COMMITMENTS HAVE An EXPENSE'
Market leaders have pushed for two prices structures for. numerous years, but the call for change began getting more. attention from investors, policymakers and clients last fall. as Western federal governments grew more worried about Chinese. competition.
In conferences across Washington and Brussels, mining. executives have actually been pleading with federal governments for some sort of. intervention until two-tiered pricing is more commonly accepted,. suggesting that tariffs, supply chain transparency requirements,. or federal government insurance coverage for mines might be potential solutions,. three market sources stated. U.S. and E.U. authorities have independently revealed sympathy with. the mining market, according to 2 of the sources, however have. so far been loath to inject themselves into the mechanics of how. costs are set by exchanges and others. I don't want to say what the markets ought to or should not do to. ensure strong ESG practices, said the U.S. State Department's. Jose Fernandez, who oversees a program developed to help with. metals supply deals. But it holds true that all of those. commitments have an expense.. As an outcome, mining market customers such as car manufacturers are in. the uneasy position of trying to keep their expenses low. while maintaining protected and diverse metals products. Some deals. are taking shape, prodded in part by guidelines connected to. emissions. The European Union by 2027 will require EV manufacturers to reveal. where they acquire metals and the carbon footprint for their. production. Rejection to comply would suggest an EV can't be sold in. the area, a step not yet taken by the United States but one. widely seen as the most aggressive globally to improve supply. chain transparency and most likely to sustain premium metals agreements. In Canada in 2015, Northern Graphite began. successfully requiring a premium from clients desiring. ensured North American products of the battery metal.
Teck Resources earlier this year started selling. a lightly processed kind of copper called concentrate to. Aurubis, a source with direct knowledge stated. The. deal does not rely on exchange prices and warranties. Aurubis a stable supply of ESG-compliant concentrate that it. turns into copper for sale to the auto industry.
Teck decreased to comment. Aurubis stated it sees the method to a. green-friendly copper industry as a joint task for the whole. worth chain, which requires to be honored from the raw material. supplier to the end consumer.
Customers for now do not face a penalty if they do not. source sustainable metals, however they increasingly deal with a. reputational risk. The question is really for cars and truck business:. Are you OK with something that may be priced lower or are you. willing to pay premiums understanding that this is sourced sustainably. in the right method? stated Michael Scherb, CEO of Appian Capital. Advisory, a personal equity firm that buys mining. companies. ' WEATHER THE STORM'. BHP, the world's largest mining company, said this month it. would suspend operations at its Australia nickel mines due to. the substantial economic obstacles driven by an international. oversupply of nickel.. The relocation was a blow to a company that had unsuccessfully wager its. customers would be willing to pay a premium for nickel produced. in a country that mines sustainably. BHP cautioned that nearly. two-thirds of Australia's nickel market is in threat of closing. amidst low market value sustained by a 153% boost in Indonesia's. nickel from 2020 through completion of in 2015 due to Huayou. Cobalt and others - production that. ecologists say has partially come by destroying the. country's large rain forests. U.S. authorities are motivating Jakarta to improve the country's. mining standards. Huayou Cobalt did not react to a request for. remark.
Australia's nickel market is amongst the cleanest in the. world mainly due to how it handles carbon emissions, according. to data from ESG consultancy Skarn Associates. Nickel processed. in Indonesia discharges more than 5 times the quantity of carbon as. production in Australia, the information show, with emissions from. China's nickel industry nearly 7 times worse than Australia.
Albemarle, the leading international manufacturer of lithium, laid off staff in. January amidst low rates caused in part by ramped up production. from Yongxing Unique Materials Innovation and. others in China. If there isn't a reward above current. rates, you're not going to get the financial investment you require to construct. the domestic (U.S.) supply chain, stated Eric Norris, who. oversees Albemarle's lithium operations.
Fernandez, the U.S. State official, anticipates increasing minerals. demand to offset existing global oversupplies, however acknowledged. that miners, in the meantime, remain in a bind.
We have to discover ways to weather the storm, Fernandez stated.
TRANSPARENCY
Considering that January, world leaders have actually taken a variety of actions to. balanced out China's market control. President Joe Biden imposed tariffs in May on crucial minerals. produced in China, stating ( metals) prices are unjustly low. due to the fact that Chinese companies do not require to fret about a revenue.
Jim Chalmers, Australia's treasurer, in February said. federal governments should consider assistance for a distinguished. international trading market for resources produced to higher. ESG standards.. Chrystia Freeland, Canada's deputy prime minister, in April said. Ottawa would combat the dumping of vital minerals by China,. Indonesia and others. The Chinese objective to the United Nations did not react to a. ask for remark. China has in the last year banned exports. of graphite and other metals.
Multiple U.S. senators from both parties have actually said they are. considering legislation to use rate insurance coverage for metals,. similar to a federal government insurance program for crops, according. to Senate assistants. Such a relocation would ensure miners a price for. their metals, regardless of market conditions. Automakers have been moving carefully as this pattern for green. rates premiums evolves, conscious that customers are reluctant. to pay more for EVs.
General Motors, the biggest U.S. automaker, believes. important minerals ought to be produced sustainably however does not. wish to pay a premium out of issue that it will be not able to. take on Chinese rivals, according to a source directly. involved in the company's minerals procurement. GM told . it needs providers to abide by high requirements, a position. echoed by Volkswagen, BMW and Stellantis. Tesla and Ford, which is building an Indonesian. nickel processing plant with Huayou Cobalt and PT Vale Indonesia. , did not respond to requests for comment.
EXCHANGES
The London Metal Exchange (LME) stated it has actually received. favorable market feedback regarding its relocate to price. sustainable nickel. Its partner Metalshub, a German online. metals auction platform, offered 144 metric tons of low-carbon. nickel in May and plans to publish a matching cost when. there are more transactions.
Benchmark Mineral Intelligence, a UK-based service provider of. crucial minerals prices and data, has actually launched green metals. pricing contracts, with each price derived from how a mining. business sticks to 79 criterion that Criteria stated reflect high. production requirements.
You will not have the ability to guarantee by any stretch of the. imagination a non-China supply of specific metals unless you're. willing to pay some degree of a premium for that item, said. Standard's Daniel Fletcher-Manuel.
That's the message that Jervois has actually been pressing,. unsuccessfully. Ultimately, ESG has an expense, said Bryce. Crocker, the business's CEO. It's a rewarding cost..
(source: Reuters)