Today’s Key Takeaways: China bans export of rare minerals. Governor Dunleavy sees certainty for oil and gas under Trump. Alaska critical mineral discoveries at Nikolai. Trumps meeting with Senate Republicans.
NEWS OF THE DAY:
| US-China Trade Fight – China Bans Export of Specific Rare Minerals 1440 Daily Digest, December 4, 2024, |
| China yesterday banned the export of specific rare minerals to the US that are used for technology and military applications, citing national security concerns. The decision came a day after the US expanded its restricted-trade list of Chinese companies for certain types of chips and reflects an escalating tech rivalry between the world’s two largest economies. The banned minerals include gallium, germanium, antimony, and other elements needed for manufacturing advanced technologies like semiconductors. China accounts for roughly 63% of US antimony imports, 54% of germanium imports, and 53% of gallium imports. China is also the world’s largest producer of all three elements, particularly gallium. Gallium and germanium are used to produce things like mobile phones, solar panels, fiber optic cables, and infrared technology, while antimony is used in flame retardants, batteries, and nuclear weapons. Trade tensions between the US and China have been rooted in national security concerns, a battle for technological leadership, and more. See an overview of the US-China trade relationship here. |
OIL & GAS:
Alaska Governor Sees ‘Certainty’ for Oil, Gas Under Trump
Jennifer Dlouhy, Joe Mathieu, BNN Bloomberg, December 3, 2024
President-elect Donald Trump’s vision for American energy dominance promises “certainty” that will encourage more investments in oil and gas, Alaska Governor Mike Dunleavy said.
That could entice more spending by companies on acreage in remote stretches of the state, including offshore waters now largely foreclosed to development and part of the Arctic National Wildlife Refuge, Dunleavy said in an interview Tuesday with Bloomberg’s “Balance of Power.”
Just two oil companies participated in the last auction of drilling rights in the Arctic refuge conducted just days before Trump’s first term ended in January 2021. And only one company, Hilcorp Alaska LLC, bid on territory in Alaska’s Cook Inlet during a congressionally mandated sale two years ago.
But Dunleavy said the outcome would be different if Trump holds new oil auctions in the region, with investor confidence bolstered both by the policy outlook in Washington and an anticipated surge in electricity demand.
“When you’re selling leases, but on the other hand you’re telling folks to not invest in the Arctic, to not put money in the Arctic and to not put money into oil, it provides an uncertain future for those investors,” he said. “I think under the Trump administration that’s going to change.”
MINING:
New critical mineral discoveries at Nikolai
Shane Lasley, North of 60 Mining News, December 3, 2024
All three holes drilled at Canwell cut wide bodies of energy metals about 15 miles northeast of the 8 billion lb nickel deposit at Eureka.
Alaska Energy Metals Corp. Nov. 21 reported that thick zones of nickel, cobalt, chromium, and platinum group metals encountered in holes drilled this year at the Emerick, Odie and Upper Canwell prospects underscore the broader critical minerals discovery potential at the company’s Nikolai project.
Nikolai is comprised of two blocks of claims – Eureka and Canwell – that each host compelling nickel targets. Alaska Energy Metal’s inaugural drill program at Nikolai in 2023 built upon previous exploration to outline a massive deposit of disseminated nickel-copper-cobalt-platinum group metals mineralization at Eureka.
Based on the 2023 and previous exploration, Eureka hosts 813 million metric tons of indicated resource averaging 0.22% (3.88 billion lb) nickel, 0.07% (1.28 billion lb) copper, 0.02% (303 million lb) cobalt, and 0.15 grams per metric ton (4.03 million oz) palladium-platinum-gold; plus 896 million metric tons of inferred resource averaging 0.21% (4.23 billion lb) nickel, 0.05% (1.04 billion lb) copper, 0.02% (327 million lb) cobalt, and 0.12 g/t (1.34 million oz) palladium-platinum-gold.
While additional grid-based drilling could easily expand this contiguous and continuous deposit of disseminated mineralization, Alaska Energy Metals focused its 2024 drilling primarily on Canwell, a block of claims approximately 12 miles (19 kilometers) northeast of Eureka, where outcroppings of massive sulfides with very high-grade nickel have been found on the surface.
To test Canwell’s potential, the company drilled one hole into three of the most prospective targets identified on the property – Emerick, Odie, and Upper Canwell.
Highlights from the 1,048 meter of exploration drilling at Canwell include:
• 56.5 meters averaging 0.26% nickel, 0.62% chromium, 7% iron, 0.01% cobalt, 0.01% copper, 0.02 g/t palladium, and 0.03 g/t platinum in hole CAN-24-001 (Emerick).
• 193.6 meters averaging 0.26% nickel, 0.69% chromium, 8.58% iron, 0.01% cobalt, 0.01% copper, 0.04 g/t palladium, and 0.04 g/t platinum in hole CAN-24-00 (Odie).
• 429.3 meters averaging 0.24% nickel, 0.64% chromium, 8.12% iron, 0.01% cobalt, 0.01% copper, 0.03 g/t palladium, and 0.04 g/t platinum.
POLITICS:
Trump’s private pep talk for Senate Republicans
Steff W. Kight, Axios, December 3, 2024
President-elect Trump called in and gave GOP senators a pep talk Tuesday as they met behind closed doors on how to rapidly pass his top priorities, three sources in the room told Axios.
Why it matters: Trump knows he has to work closely with the Senate to get things done. GOP congressional leaders are signaling they’re raring to go.
- Incoming Senate Majority Leader John Thune (R-S.D.) warned Republican senators Tuesday to expect longer, five-day work weeks — starting in the new year through Easter.
- They have a long list: Fund the government for the rest of the year, agree to a top line budget number and potentially raise the debt limit — not to mention confirm all of Trump’s top administration positions.
Zoom in: Thune and incoming GOP Policy Chair Sen. Shelley Moore Capito (R-W.Va.) held a lengthy policy retreat Tuesday in D.C.
- A major topic: How they plan to use budget reconciliation to pass policy priorities while evading the 60-vote filibuster.
- Thune told senators he plans to move on a reconciliation package within the first 30 days of the new administration. This one would include border, defense and energy policies.
- A second package would be used to address taxes.
What we’re hearing: Early in the retreat, Thune addressed senators telling them to gear up for long workdays and work weeks to set up Trump’s administration and move fast on their own priorities, two sources in the room told Axios.
- Thune told senators to be prepared to work weekends and skip usual recess weeks in the first 100 days, according to a source familiar.
- Votes will no longer be held open indefinitely to give senators time to vote, another move to make the Senate more efficient.
- Many Republican senators have complained about lax work schedules. In a normal week, senators usually arrive at the Capitol late Monday afternoon and fly home Thursday afternoon.