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EU wants to strengthen its defences against economic threats such as China's export restrictions
The European Commission announced plans on Wednesday to increase EU resilience against threats such as rare earth shortages through strengthening trade measures and adding economic security tools. These plans are the culmination of Europe slowly realising that it needs to act quickly and across all sectors in order to stop its years-long dependence on a single point of origin for goods or energy. The plans come after several painful shocks, including the COVID epidemic, Russia's conflict in Ukraine and U.S. Tariffs. The EU executive has outlined what it calls an "economic security policy" for the 27 nation bloc. This is in response to Chinese restrictions which have stifled supplies of rare earths, chips and other essential materials. The EU is determined to be a leader in manufacturing, but it risks losing ground to China and the U.S. on technologies such as batteries and AI. The EU decided on Wednesday to stop Russian gas imports before the end of 2027. Now, the Commission is looking to replicate this success by implementing the REsourceEU action plan. This plan aims to accelerate the development and use of the EU's own resources. EU TO REVIEW SUPPLY CHAINS, INBOUND INVESTMENT RULES The Commission is looking to work more closely with EU member states and businesses to examine EU supply chains, the rules for inbound investments, its defence and aerospace sectors, as well as its strengths in new technologies, critical infrastructure, and critical infrastructure. Maros SEFCIOVIC, Trade Commissioner said: "We are moving from reacting to reshaping policies." Sefcovic stated that the Commission will review, by the third quarter in 2026, how to accelerate trade measures like anti-dumping and counter-subsidy duty assessments. These are currently applied only after a year-long investigation. The new measures could be designed to counter unfair competition and market distortions including overcapacity. They would encourage companies in high-risk industries to have multiple suppliers and set preferences for EU-based firms to be used in public procurements in strategic sectors. EU support would be given to businesses in the EU that reduce their dependence on foreign companies or technologies. Sefcovic stated that the EU will likely learn from Japan's response to China's suspension of rare earth exports due to a territorial dispute in 2010, which was to diversify, recycle more, build reserves, and form partnerships. Stephane Sejourne, vice president of the Commission, said that some diversifications measures could be made mandatory by the EU. He said that European companies should stop buying Chinese products for reasons of economic safety, just as Japanese, U.S. and Indian companies do. (Reporting and editing by Frances Kerry, Julia Payne, Philip Blenkinsop)
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First Amendment lawsuit filed by fired employees against EPA
Six former Environmental Protection Agency workers filed a First Amendment lawsuit against EPA administrator Lee Zeldin on Wednesday for terminating their employment due to what they called the politicization science under the Trump Administration. Employees were terminated earlier this year, after signing an open letter addressed to Zeldin in which they criticized the agency and accused it of putting public health at risk by allowing politics to dictate research. Why is this important? Public Employees for Environmental Responsibility (PEER), which represents the fired employees said that President Donald Trump's EPA has violated First Amendment free speech protections, and also put the public at risk by removing experienced workers from their environmental protection jobs. The EPA put 139 employees on leave administrative in July, after they signed a dissenting letter. It said it had "zero tolerance" towards those who sabotage the government agenda. Key Context In early 2018, the Trump administration directed agencies to work together with Department of Government Efficiency, which was recently dissolved, in order to identify mass layoff targets as part of their restructuring plans. DOGE began a series of dramatic moves in Washington during the first months of President Trump's second tenure to shrink federal agencies and cut budgets, or redirect work to Trump priorities. In July, the EPA announced that it would reduce its workforce by 23% at least and close its scientific research offices as part of President Obama's efforts to shrink the federal government. KEY QUOTE Daniel Rosenthal, a partner with James & Hoffman who represents both unions and government employees, said: "The agency must prove that employees committed misconduct, and that this misconduct interfered with the employee's job or another legitimate objective of the government." (Reporting and editing by Aurora Ellis; Valerie Volcovici)
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Ivanhoe Mines predicts a Kamoa-Kakula copper production of up to 420,000 tonnes in 2026
Ivanhoe Mines said that its recovery plan is progressing and it expects the copper production at its Kamoa/Kakula complex to reach between 380,000-420,000 tons of copper in 2026, and 500,000-540,000 tonnes in 2027. It will update its life-of-mine plans towards the end the first quarter next year. In its report on production guidance, Ivanhoe said that copper sales are expected to exceed output in 2026 as it clears 20,000 tons concentrate stock once its new smelter, Africa's biggest, starts up in December and shifts production to copper anodes. Robert Friedland, Ivanhoe's co-chairman, said that the company was "on the brink of a transformative change", as Kamoa Kakula switches from producing copper concentrates to copper anodes. Copper concentrate is semi-processed and shipped to smelters by third parties for refinement. Copper anodes are produced by smelters and are 99% pure. They can be sold directly to manufacturers or further refined. After the seismic disruptions in early 2015, the company expects Kamoa-Kakula to produce 370,000 to 400,00 tons of copper by 2025.
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EU curbs exports of rare earth and recyclable battery waste to reduce China's reliance
As part of its efforts to ensure critical raw materials for electric cars, windmills and semiconductors, the European Commission intends to restrict exports from 2026 of rare earth scrap and battery scraps that can be recycled. This proposal is one of the first responses to China's decision to limit exports to many industries that rely on rare earth magnets. The REsourceEU plan of the Commission aims to speed up the Critical Raw Materials Act that will be passed by 2023. The EU wants its supply chains to be developed faster so that it does not rely on a single country to meet more than 65% its demand. The recycling of rare earth wastes could provide 20% of the EU’s annual permanent magnet requirements, which are 20,000 metric tonnes. Waste lithium-ion battery and black mass will no longer be considered hazardous after September 2026. This will prevent exports to non OECD countries. The document states that "the Joint Research Centre estimates the EU could treat up to 50% of the black mass they produce, leading to as many as 1 million new battery packs for electric vehicles per year." This is referring to black powdered waste from batteries. According to the plan, the EU will invest $3.50 billion over the next 12 months to accelerate projects that could reduce reliance on one country by as much as 50% by 2029. Stephane Sejourne is the EU Industry Chief. He said that 2 billion euro would come from European Investment Bank. 300 million euro will come from Battery Booster. And 600 million euro from Horizon Europe. In 2026, a new European Critical Raw Materials Centre (ECRMC) will be launched. Sejourne, Executive Vice President of the Commission, told a Press Conference that "it will have three major tasks: monitoring and assessment needs, joint buying on behalf Member States, as well as stockpiling, and delivery when required." The first round will begin in March 2026, via a matchmaking system. After industry sources claimed that the platform was little more than "Tinder for Metals", without any guarantees that it could compete against cheaper Chinese supplies, the Commission will work with stakeholder to design a price minimum mechanism.
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Source in the industry says EU is expected to delay its announcement of car climate targets.
A source in the industry said that it is likely the European Commission would delay its announcement of an updated plan for climate targets for automakers. This comes after Brussels was under pressure to lower the 2035 deadline for combustion engines. The European automakers, with the support of Germany and the competition from China as well as tariffs that squeeze margins, are lobbying Brussels to allow them more flexibility in navigating the expensive shift to electric. On December 10, the Commission, the EU executive branch, will announce a package of measures to support the automobile sector. This includes a possible revision to the 2035 effective ban on the sale of new combustion engine. A source in the German auto industry said that this date was likely to be delayed. The EU Transport Commissioner Apostolos Tzitzikostas said to Handelsblatt earlier this week that the announcement could be delayed till early January. The EU official said that the letter from German Chancellor Friedrich Merz to Brussels, in which he appealed for the exemption of plug-in hybrids as well as "highly-efficient" combustion engines from the ban was well received.
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ArcelorMittal to pay Italy 5 billion euros in damages for ILVA steelworks
Adolfo Urso, the Industry Minister, said that the commissioners of Italy’s former ILVA Steel plants would launch a damages claim against ArcelorMittal for 5 billion euros ($5.83billion), as the government sought a buyer for the steelmaker. Acciaierie d'Italia, formerly known as ILVA was placed under the government's administration in 2024. This ended the ownership of ArcelorMittal - the second largest steelmaker in the world - and aimed to find new private investors. Urso, who announced the claim for damages in the parliament, said: "Extraordinary Maintenance is absolutely necessary. It stems from the total neglect and decay that ArcelorMittal left the plants in." ADI is a major headache to Italian Prime Minister Giorgio Meloni, as it struggles to maintain production despite rising energy costs. Its closure would also have a significant impact on the manufacturing sector of Italy. The steelmaker announced in September that it received 10 bids, but only two bidders, Azerbaijan Baku Steel Company and Azerbaijan Investment Company as well as India Jindal Steel International, were interested to purchase all the assets of the company. ($1 = 0.8578 euro) (Reporting and editing by Gavin Jones, Sara Rossi)
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Terra Brasil draws US, UK, Chinese interest in $1 billion rare earths project
Terra Brasil Minerals' chief executive said that a $1 billion fundraising drive for the Brazilian rare earths project and fertilizers was attracting global attention. This is because U.S.-Chinese relations are increasing investor interest in Brazil, which has the second largest reserves in the world. Eduardo Duarte, CEO of the company, said that 18 bidders have so far accessed the data room in order to evaluate the offer. The process is expected to be completed in the coming months. Duarte, who is a member the family that controls the company, said, "We are prepared at the right time." He cited renewed interest by the U.S., other Western countries, and China in the Brazilian rare earths as they look to reduce their dependence on China. Duarte confirmed that U.S. government officials had also requested information about the company. The junior miner, founded in 2013, has so far invested 200 million reais (38 million dollars) in the Minas Gerais mine. This money was mainly used for feasibility studies and the development of technology to process minerals. Terra Brasil plans to invest half of its planned investment in rare earths, and the other half will be spent on fertilizers due to Brazil's strong farm sector. Brazil produced just 20 tons of rare-earth elements in 2024 out of the 390,000 tonnes globally. This is due to the lack of funding for projects. The government of Brazil expressed this concern at Exposibram in October, Brazil's largest mining event. Participants report that the U.S. charge-d'affaires for Brazil in Brazil Gabriel Escobar met with mining companies on the sidelines to discuss rare earth projects in Brazil. Rafael Moreno of Viridis Mining with assets in Minas Gerais, Brazil, and Ramon Costa of Aclara Resources who has a project in Goias, Brazil, both expressed their hope that a breakthrough could be made in the U.S.-Brazil trade negotiations, allowing a new wave of financing to enter this sector. O Estado de Sao Paulo, a newspaper in Brazil, reported that Serra Verde is the country's only rare earths producer. It is controlled by U.S.-based investors. The company wants to invest with a minority partner. The company refused to comment.
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Silver records record as Fed rate cuts fueled by weak payroll data; gold rises
The gold price edged upwards on Wednesday, after weak payrolls data in the U.S. reinforced expectations for a rate cut next Monday. Silver also hit a new record high. By 10:03 am, spot gold had risen 0.1% to $4.209.31 per ounce. ET (1503 GMT), after having lost more than 1% the previous session. U.S. Gold Futures for February Delivery were up 0.5% to $4,241.20. Silver fell 0.2% to $58.28 per ounce, after reaching a record-high of $58.94. Bob Haberkorn, senior market strategist at RJO Futures, said that the gold price is rising because of this morning's missed ADP data and silver reaching all-time highs over night. The ADP report on Wednesday showed that private payrolls in the United States fell by 32,000 positions in November. This was below economists' expectations of a 10,000 job increase. Gold is now more affordable to other currency holders as the dollar index has dropped by 0.5%, its lowest level since November 29. CME's FedWatch tool shows that there is an 89% probability the U.S. Central Bank will reduce rates next week. Major brokerages have also predicted a rate cut for the December 9-10 meeting. The markets are still waiting for the Personal Consumption Spending data from September, which is the Fed's preferred measure of inflation. This data is due Friday. Gold is a non-yielding asset that tends to be favored by lower interest rates. Silver has risen 101% in the past year, due to fears about market liquidity following outflows into US stocks and its inclusion on the U.S. Critical Minerals list. Haberkorn explained that silver's strength is due to concerns about supply at the exchange level, and added that it could reach $60/oz in the near future. The copper price also reached a new record on Wednesday, thanks to a weaker US dollar, concerns about supply and a tighter availability of the metal in registered warehouses with the London Metal Exchange. Palladium fell 0.5%, to $1.455.34, while platinum rose 0.6%, to $1.647.75 per ounce. (Reporting and editing by Leroy Leo in Bengaluru, Anmol Choubey)
Eni's Renewable Unit Buys Energy Customer Portfolio from Italy's ACEA
The Italian energy group Eni's low-carbon division has agreed to purchase some businesses from regional utility ACEA for 587 million euro ($685 millions), both companies announced on Wednesday.
The companies stated that the price would be subject to the standard adjustment mechanisms applicable to this type of transaction. Eni's Plenitude, for example, could pay an extra 100 million euros to ACEA if specific performance targets were met by mid-2027.
Plenitude will have over 11 million customers in Europe, an amount it had hoped to reach in 2028. The deal is expected to be completed by June of next year.
Rothschild advised ACEA on the deal and said that it would focus the proceeds on energy networks, regulated businesses, and ACEA.
This transaction will enable us to reinvest into infrastructure, innovation, sustainability, and the development of regulated business, resulting in a positive impact on ACEA's growth and result," ACEA CEO Fabrizio Palaermo stated in a press release. ($1 = 0.8573 euro) (Reporting and editing by Gavin Jones, Francesca Landini)
(source: Reuters)