Saturday, April 22, 2023

Progressive Democrat brings pitch to rural America


BY HANNA TRUDO - 04/22/23

DES MOINES, Iowa — Democrats have watched in dismay as voters in rural and old industrial strongholds say they want more of what the Republican Party is offering, resisting the establishment’s approach to win them back and raising questions about their party’s strategy.

One progressive — a suited-up, camera-ready U.S. congressman from California — is determined to try a different approach to pique their interest.

Seated in a dimly lit hotel conference room in Des Moines, far from his hub in Silicon Valley and Washington, D.C., work base, Rep. Ro Khanna (D-Calif.) believes there’s something Democrats get wrong about voters around here.

“One of the things that is a stereotype in my view against rural Americans is this view somehow that they don’t understand what’s happening in the world,” Khanna told The Hill. “They get it. They understand what’s changing the economy. They understand we’re in an economy where technology really matters.”

There is a ton of demand for new kinds of jobs, and residents are dying to innovate. They want the education, training and skills that come from industries of the future, and they want to be compensated accordingly. They aren’t afraid of Big Tech. If Democrats can offer that, he believes voters will listen and the party will be rewarded at the ballot box.

“In my district, when there’s a town hall, 80 percent of hands go up saying they’re optimistic about America. That’s not the case in many other communities,” Khanna said. “You know what they resent? That their kids don’t have the opportunity that the kids in my district do.”

Khanna’s been on a mission beyond the Beltway to change that. Elected in the district where tech giants dominate, the liberal House member sees his position, both geographically and politically, as unique. He’s a progressive who likes to use that label. But unlike some of his contemporaries on the left, he’s not crusading against the tech sector. He rather sees the industry as a key piece to restoring some of America’s most prized places to their original luster.

“If we bring economic opportunity, if we have a renewal of American production, if we make America a manufacturing superpower again, which we can with technology,” he said, “then we can start to bring this country together in ways that have fractured it.”

It’s an ambitious pitch. In places like Des Moines, politicians from both sides of the aisle fly in and out each presidential cycle, shaking hands and retailing with residents, but they don’t stay long. Khanna wants to leave a different kind of imprint — one that requires a strong presence from his district’s biggest strength.

He’s not running for president this cycle and is supporting President Biden’s anticipated bid for re-election in 2024. Some locals wonder why a Democrat like him would even come here after the caucus is no longer expected to be the first voting state on the calendar.

Driving downtown, one Iowa resident remarked that he used to be a Democrat, but that the party left him, rather than the other way around. Democrats have struggled to pull those types of voters away from the GOP.

“It’s sad to me that we’ve let Donald Trump take the manufacturing message when we have the real substance,” Khanna said.

Here and in places like Pennsylvania, where Khanna also recently visited as part of a multi-state tour, he hopes to connect with communities daring to ask for something they say the party’s not delivering.

It’s clear that a sizable group of people want something new. The state went for both Trump in 2020 and voted for Kim Reynolds, a Republican, for governor this November, cementing a trend that had been forming for years.

“To some extent, Trump speaking about the loss of manufacturing jobs is what resonated in parts of the industrial midwest and the south,” Khanna said. “But what we need to say is: He had four years.”

Democrats, for their part, have focused heavily on social and cultural issues. The results have been up and down. They lost seats in some traditionally blue places like New York during the midterms, but also made headway in battlegrounds like Wisconsin over the issue of abortion, which has galvanized their base.

“We’ve got to stop talking like technocrats, academics, social justice warriors or bland bureaucrats,” said Anthony Flaccavento, a rural development expert and author of “The Rural Progressive Platform.”

Democrats need to “start showing up much more than we have for the past few decades,” Flaccavento said, who lives in an Appalachian area of Virginia.

“That means year-round engagement, particularly doing helpful stuff in local rural communities,” he said. “Consistently showing up as good neighbors to solve local problems will help us rebuild trust, which is essential.”

Some Democrats are urging members of their party to emphasize more tangible things like showing ways to create generational wealth and building a strong financial future. They believe that with an economic message like that, voters can be persuaded to think differently about the party in power.

That’s the hope for MD Isley, an educator who caucuses regularly for Democrats but sees holes in the party’s approach. Last primary, he was inspired by Pete Buttigieg, the former South Bend mayor who now serves as Transportation secretary, as a possible new direction for Democrats, but admits to being freshly inspired by Khanna’s progressive ideas.

“It’s not just because he’s here with us today,” said Isley. “Democrats should be paying direct attention to the work Congressman Khanna is doing.”

“Rural Iowa is unique and valuable and core to our history of the state and the midwest. Metro areas within Iowa are also key, very important economic drivers,” he said.

Despite the obvious electoral ramifications, national Democrats are often puzzled by their party’s inability to bring more voters from rural and former manufacturing towns over to their side. Some critique flaws within their platform, arguing they need to offer voters more social safety net programs, health care, affordable housing, education and the like.

Democrats “do not understand rural areas and buy into the argument that rural is hopeless, a downward spiral of dysfunction fueled by bigotry, xenophobia and outmoded thinking. This characterization is false, and it has helped Dems feel justified in either ignoring or denigrating rural people and places,” said Flaccavento.

“Some of the most innovative new economic, civic, cultural and media strategies in the country are emerging in small towns and rural communities, but most Dems know nothing of it,” he added.

Khanna’s alignment with the tech sector distinguishes him from progressives like Sen. Elizabeth Warren (D-Mass.), who has been critical of the industry’s influence. While Khanna is clear-eyed about areas for improvement, such as privacy and data protection, he believes it offers the party opportunities as well.

A glimpse into that vision for Democrats was recently on display, when several dozen young people engaged in a discussion around a new tech development and career training program.

The initiative, dubbed the Techwise program in partnership with TalentSprint Inc., combines the hiring power of Google with students at Des Moines Area Community College and other community colleges in areas with less of a natural link to the tech world. It’s intended to propel students into specific early tech careers like software engineering after just 18 months.

“This is a big step for us, we can be the first ones in our family to do this,” said Ryan, a 20-year-old student from Ankeny, one of many students participating across several schools nationally.

Ryan, like other students here, wants a sustainable path toward economic prosperity. A political independent, he said he looks for growth messages when vetting candidates. “I want to feel secure in my future financially,” he said, adding that he hopes to hear new ideas that “would help me and hopefully my future family come up in the world, economically.”

He wants Democrats to focus on “more local communities. More people like me,” he said.

Another student, 19-year-old Adam, a Republican, said he hopes the hiring discussion for jobs for the future goes beyond the bigger states like California and metropolitan centers.

“There’s talent everywhere in the world,” he said. “You just have to go find it.”

As the next presidential cycle ramps up and Democrats start fine-tuning their strategy, Republicans are eager to grab votes from the margins. They see messages around identity and culture wars as ways to attack the other side.

Khanna, along with other outspoken progressives in the House, also believes Democrats need to look beyond social issues.

While he’s reluctant to pitch himself as the right messenger — or even the right person to give Biden a nudge on election strategy — others are increasingly looking to him.

“Rep. Khanna, I hope, will highlight many of these innovative businesses and strategies,” Flaccavento said.

At 46, Khanna’s a lot younger than members of his party’s leadership. Biden is 80 and Sen. Bernie Sanders (I-Vt.), for whom Khanna served as a campaign co-chair in 2020, is 81. He’s also Indian American.

Like Sanders, he’s not afraid to go where other Democrats have sometimes skipped over. Sanders won parts of the midwest against Hillary Clinton in 2016 — including nearly beating her in the Iowa caucus and pulling off a meteoric win in Michigan — by outlining a populist economic agenda that was previously more muted within the party. Khanna, too, believes it’s not enough to reach just Democrats, but rather to expand to other electorates searching for new kinds of jobs and chances to be forward-looking about their work.

“People say, how can you be a Bernie Sanders co-chair and go on Fox [News] and have people listen to you?” he said. “It’s because I don’t go on there and just hurl insults.”

Where Sanders had economic populism and Trump had “America First,” Khanna has coined “a new economic patriotism,” a merging of the sort of upward mobility people strive for and the values that drive their lives at home.

And it’s not just the industrial midwest that many believe needs Democrats’ attention. Just hours after sitting down for a bowl of cajun gumbo at Bubba, a southern style restaurant downtown, Khanna and a close adviser were off to South Carolina, another hotspot for Democrats that is often lost to Republicans in general elections.

Khanna fundamentally believes he has the right prescription for the moment. It’s not a midwestern thing or a southern thing, but rather a transferring of values that have somehow gotten lost in the mix.

“The Democratic Party has to speak loudly, boldly, clearly about that,” he said, listing off core values like making sure people have the right to vote and women have autonomy over their bodies and healthcare decisions, and that the judicial process is fair.

“In addition to that,” he stressed, “we need to have a second sentence.”

“What are we going to do for folks to bring economic opportunity? What are we going to do to bring manufacturing back? What are we going to do to bring the technology and prosperity in my district to places that have been left behind?” he pressed.

Next month, Khanna heads to New Hampshire, where top party officials know him as a regular.

“Why I want President Biden to succeed is because that makes a progressive movement more possible,” he said. “And I do think that we’re going to see for the next 20 years, after Biden, progressive nominees of the party.”
Russia's billionaires $152bn richer in year since Ukraine invasion

Latest rich list released by Forbes Russia has 22 new names


Andrei Melnichenko, whose fortune is built on fertilisers, was listed as Russia's richest man by Forbes, with an estimated worth of $25.2 billion.
 

Apr 22, 2023

Russia's richest people added $152 billion to their wealth over the past year, buoyed by high prices for natural resources and rebounding from the huge loss of fortunes they experienced just after the Ukraine war began, Forbes Russia said.

Russia has 110 official billionaires in the list, up 22 from last year, according to Forbes' Russian edition, which said their total wealth increased to $505 billion from $353 billion when the 2022 list was announced.

The list would have been longer had not five billionaires — DST Global founder Yuri Milner, Revolut founder Nikolay Storonsky, Freedom Finance founder Timur Turlov, and JetBrains co-founders Sergei Dmitriev and Valentin Kipyatkov — renounced their Russian citizenship, Forbes said.

“Last year's rating results were also influenced by apocalyptic predictions about the Russian economy,” Forbes said

It said the total wealth of Russia's billionaires in 2021, before the war began, was $606 billion.

After President Vladimir Putin ordered troops into Ukraine on February 24 last year, the West imposed what it casts as the most severe sanctions in modern history on Russia's economy — and some of its richest people — in an attempt to punish Mr Putin for the war.

Mr Putin said the West was trying to destroy Russia and has repeatedly touted the failure of western sanctions to destroy the Russian economy, or even stop western luxury goods — let alone basic parts — from ending up in Russia.

Russia's economy shrank 2.1 per cent in 2022 under the pressure of western sanctions, but it was able to sell oil, metals and other natural resources to global markets, in particular to China, India and the Middle East.

The International Monetary Fund this month raised its forecast for Russian growth in 2023 to 0.7 per cent from 0.3 per cent, but lowered its 2024 forecast to 1.3 per cent from 2.1 per cent, saying it also expected labour shortages and the departure of western companies to damage the country's economy.

The price of Urals oil, the lifeblood of the Russian economy, averaged $76.09 per barrel in 2022, up from $69 in 2021. Fertiliser prices were also high last year.

Andrei Melnichenko, who made a fortune in fertilisers, was listed as Russia's richest man by Forbes with an estimated worth of $25.2 billion, more than double what he was estimated to be worth last year.

Vladimir Potanin, president and biggest shareholder of Nornickel, the world's largest producer of palladium and refined nickel, was ranked as second richest in Russia with a fortune of $23.7 billion.


Vladimir Potanin, president of Nornickel, attends a session of the St Petersburg International Economic Forum in 2019. Reuters

Vladimir Lisin, who controls steel maker NLMK and was ranked last year as Russia's richest man, was placed third in the Forbes Russia list with a fortune of $22.1 billion.

Many Russian billionaires cast western sanctions as a clumsy, and even racist, tool.

Building fortunes as the Soviet Union crumbled, a small group of tycoons known as the oligarchs persuaded the Kremlin under late president Boris Yeltsin to give them control over some of the biggest oil and metals companies in the world.

The privatisation deals often propelled the tycoons into the league of the world’s super rich, earning them the enduring dislike of millions of impoverished Russians.

But under Mr Putin, some of the original oligarchs, such as Mikhail Khodorkovsky and Boris Berezovsky, were stripped of their assets, which eventually ended up under the sway of state companies often run by former spies.

New Russian names in the Forbes list include billionaires who made their money in snacks, supermarkets, chemicals, building and pharmaceuticals, indicating that Russian domestic demand has remained strong despite the sanctions.
GOOD NEIGHBOUR
Canadian official says country ‘would work to provide’ access to abortion pill if banned in US

BY NICK ROBERTSON - 04/22/23 

 Boxes of the drug mifepristone sit on a shelf at the West Alabama Women’s Center in Tuscaloosa, Ala., on March 16, 2022. The Supreme Court is deciding whether women will face restrictions in getting a drug used in the most common method of abortion in the United States, while a lawsuit continues. (AP Photo/Allen G. Breed, File)

The Canadian government “would work to provide” access to medical abortion drugs if it is banned in the U.S., an official said in a television interview Thursday.

Families Minister Karina Gould said Canada would assist Americans in getting access to abortion medication in line with its national laws if American law were to change.

“What concerns me … is where you see laws in states where they’re actually criminalizing women (who) cross state borders to access reproductive health care,” Gould said.

“And so, you know, we need to be very thoughtful about how we do this to make sure that we don’t further endanger, you know, American women who are seeking access to reproductive health care and services, as well as health-care providers,” she added.

On Friday, the Supreme Court paused a federal judge’s order to restrict access to the abortion pill mifepristone. The 5th Circuit Court is currently considering a case to prevent access to the drug after a Texas judge ruled that it should not be allowed.

Reproductive rights advocates say the original ruling, and questions over the drug’s legality, are actually more damaging to people who live in states where abortion is already legal.Nearly 70 percent of older gamers say they’re an afterthought in video game development: surveyHere are most and least environmentally friendly states

“This judicial ping-pong game is impacting the accessibility of a safe, effective, decades-long approved medication and is causing chaos and confusion,” Carrie Flaxman, senior director, public policy litigation & law at Planned Parenthood, said during a recent briefing.

The battle over mifepristone is the latest in a series of efforts to reduce access to reproductive care, including abortions. The Supreme Court overturned the landmark case allowing abortions nationwide, Roe v. Wade, last summer.


Since that ruling, over a dozen states have made abortions illegal, while others have reacted by enshrining the right to abortion to access into their states’ laws or constitutions.
CRIMINAL CAPITALI$M
Glencore staff bribery charges delayed until later this year
Bloomberg News | April 18, 2023 

Glencore headquarters in Baar, Switzerland. Stock image.

The UK’s fraud prosecutor is to delay a long-awaited decision whether to charge as many as 11 ex-Glencore Plc employees involved in the widespread corruption perpetrated at the company.


The Serious Fraud Office intended to make individual charging decisions on executives by the end of April, but it has now pushed the date back until later this year, according to people familiar with the matter.

The commodity trading industry has been dogged by anti-corruption investigations for years, but few individual traders or bosses have faced prosecution. The SFO previously said the investigation into the individual Glencore employees makes allegations of serious criminality, but it did not confirm whether all 11 employees implicated were under investigation.


“Our bribery investigation into individuals connected to Glencore remains ongoing,” an SFO spokesperson said.

Glencore was hit with a £276 million ($343 million) fine in November by a London judge after pleading guilty to coordinating a sprawling effort to bribe government officials for access to oil cargoes across Africa.

Prosecutors focused in on the firm’s London trading desk, saying Glencore’s traders and executives paid more than $28 million in bribes to secure access to oil cargoes between 2011 and 2016.


A Glencore spokesperson declined to comment.

The SFO is in the middle of a shake up at the top of its leadership after director Lisa Osofsky announced she would step down from the role in August. A recruitment process for her successor is currently underway.

(By Katharine Gemmell and Jonathan Browning)

Investors pile climate pressure on Glencore ahead of May AGM

Reuters | April 18, 2023 | 

(Image Image of Newlands Coal Complex, courtesy of Glencore)

Global miner Glencore faces increased pressure to clarify how it will manage its climate change commitments after investors holding more than $500 billion in assets backed a shareholder resolution to be voted on next month.


Nine institutional investors, including Man Group, Scottish Widows and Brunel Pension Partnership, added their weight to calls for more transparency from one of the world’s biggest producers of thermal coal, according to a joint statement from the Australian Centre for Corporate Responsibility (ACCR).

Major asset managers representing $2.2 trillion in assets late last year asked Glencore to explain how its production and capital expenditure plans aligned with the Paris goals on tackling climate change as part of a shareholder resolution.

Those concerns were not adequately addressed in Glencore’s March climate report, according to the statement. At the 2022 AGM, nearly a quarter of shareholders rejected Glencore’s climate plan.

Glencore is one of the world’s largest producers and traders of thermal coal used in power generation. Record prices of the commodity helped to add some $10 billion to its earnings in the six months to June.

Shipra Gupta, Investments Stewardship Lead at Scottish Widows, said the asset owner would support the latest shareholder resolution at the annual general meeting (AGM) on May 26 in Zug, Switzerland.

Shareholders unhappy with board decisions can rally to vote against remuneration and director appointments amongst other measures.

The demands for more accountability follow Glencore’s proposal to spin off its coal business as part of its $22.5 billion attempted takeover of Canada’s Teck Resources which raises the issue of future responsibility over coal emissions should the deal goal through.

Former Glencore CEO Ivan Glasenberg said in 2020 the company would run down its coal mines and would not replace them.

“I don’t see how spinning off coal mines will help us reduce Scope 3 emissions,” he said, referring to the emissions generated when the fuel sold by a company is burnt.

(By Melanie Burton; Editing by Barbara Lewis)

Norwegian sovereign wealth fund to support Teck Resources plan to split business

STEELWORKERS LOCAL SUPPORTS SPLIT

Norway's sovereign wealth fund will vote to support Teck Resources Ltd.'s plan to split the company's metals and steelmaking coal businesses into two separate companies at a key shareholder meeting next week. 

The decision comes as Teck works to secure support for its plan over an unsolicited takeover proposal by Swiss company Glencore, which is urging shareholders to reject the company's proposal in favour of its offer to acquire the company.

Glencore has said it cannot pursue its bid if Teck's plan to separate its businesses goes ahead since it would add significant complexity to the deal. 

Norges Bank Investment Management, which manages Norway's Government Pension Fund Global, published its voting intentions as part of its routine disclosures on its website. It held a roughly 1.5 per cent stake in the Canadian mining company as of the end of 2022.

The United Steelworkers (USW), the union which represents over 4,000 Teck employees in B.C., has also come out in favour of Teck's planned split into Teck Metals and Elk Valley Resources.

In a statement on Thursday, USW District 3 director Scott Lunny said Teck supports the economies of numerous B.C. communities in which it operates, including Logan Lake, Sparwood, Elkford and Trail.

 "Management has briefed the union on their plans and our union believes the plan to split into two, B.C.-based companies is in the best interest of our members at the metals operations and at the coal mines," Lunny said.

"This is a well-thought-out plan that will create two strong companies willing to work with us and British Columbians to become ESG leaders, provide stability and certainty for our members, provide ongoing benefits to Indigenous nations, and invest in B.C.”

Teck announced in February a proposal to split up its metals and steelmaking coal businesses into two companies, Teck Metals and Elk Valley Resources. The change requires approval by a two-thirds majority vote by the class A shareholders as well as approval by a two-thirds majority vote by the class B shareholders. 

Teck shareholders will vote on the separation plan at a meeting on April 26.

This report by The Canadian Press was first published April 21, 2023.

Sumitomo Metals backs Teck’s split plan


Cecilia Jamasmie | April 20, 2023 | 

Teck owns 60% of Quebrada Blanca Phase 2 project and Sumitomo Metal Mining, together with Sumitomo Corporation, have a collective 30% interest. (Image courtesy of Teck Resources.)

Japan’s Sumitomo Metal Mining (SMM) confirmed on Thursday its support for Teck Resources’ (TSX: TECK.A, TECK.B) (NYSE: TECK) planned spinoff into two companies in the face of an alternative proposal from Glencore (LON: GLEN), which wants to buyout Canada’s largest diversified miner.


The company, one of Teck’s top shareholders, holds 18.9% of the Class A shares and 0.1% of the Class B shares of Teck. It also has a 49% stake in Temagami Mining, which itself holds 55% of Teck’s Class A shares.


The Vancouver-based mining giant operates under a dual-class structure, in which Class A shares are each worth 100 votes. Class B shares are worth one vote each.

SMM and Teck have a decades-long partnership in mining, including the joint development and construction of the Pogo gold mine in Alaska, and the Quebrada Blanca copper mine in Chile.


Teck is trying to get backing for its proposed restructuring ahead of a shareholder vote on the proposal on April 26. It wants to to split up its metal and steelmaking coal businesses into two companies, Teck Metals and Elk Valley Resources.

POSCO, both a customer and a JV partner with Teck on its Elkview and Greenhills operations, as well as China Steel Corporation, are among the shareholders that have backed the Canadian miner in the last 24 hours.

Glencore published on Wednesday an open letter to Teck shareholders, saying it was open to talk improvements to its proposal directly with Teck shareholders if the board continued to rebuff its offer.


The Canadian company quickly replied by saying that Teck has previously engaged “extensively” with Glencore – for six months on “essentially the same proposal” – and repeatedly determined it is not in the best interest of its shareholders.

Glencore’s initial bid represented a 20% premium to Teck’s March 26 closing price, when it was privately made.

The Swiss miner and commodities trader has indicated it could raise its current $23 billion bid if shareholders vote against Teck’s plans next week.

Sumitomo Metal Mining Co. Ltd., a key shareholder at Teck Resources Ltd., says it will vote in favour of the company's plan to separate its metals and steelmaking coal operations into two companies.

The Japanese company says in a statement that it has built a trusted partnership with Teck in the mining business.

Swiss company Glencore has proposed a takeover offer for Teck that would see shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets.  

However, Glencore has said Teck shareholders must first reject the company's plan to split its business into Teck Metals and Elk Valley Resources.

Teck, which has rejected the Glencore proposal, is controlled by the Keevil family, which owns the company's multi-voting class A shares together with Sumitomo. 

Sumitomo holds 18.9 per cent of Teck's class A shares and 0.1 per cent of its class B shares. It also holds a 49 per cent interest in Temagami Mining Co. Ltd., which holds 55 per cent of Teckʼs class A shares.

This report by The Canadian Press was first published April, 20, 2023.


 

Letko Brosseau to vote in favour of Teck's plan to split company

TECK RESOURCES LTD-CLS B (TECK/B:CT)

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Investment manager Letko Brosseau & Associates Inc. will vote in favour of Teck Resources Ltd.'s plan to split the company, saying it will ultimately offer more value for shareholders than a Glencore Plc takeover.

The unsolicited offer by the Swiss commodities giant dramatically undervalues Teck's metallurgical coal assets, Peter Letko, co-founder of the Montreal based firm, said in a Thursday interview.

Glencore originally offered to buy Teck for US$23 billion in shares, and earlier this month revised its proposal to give Teck shareholders an option to receive as much as US$8.2 billion in cash instead of stock in a spun-off coal company. Letko said the coal number is “extremely low.”

“I think ultimately this is going to be worth maybe twice what they're offering,” he said. “I don't think that we're in the ballpark. I doubt very much that we'd see a big improvement in their proposal.”

Representatives from Letko Brosseau have spoken to Teck and met Glencore, Letko said. The company has owned shares of the Vancouver-based miner for at least 20 years and currently holds about 3.6 million shares, he said.

Letko called Glencore “rather clever” for making a takeover attempt before other companies could put together offers. Teck's controlling shareholder, Norman Keevil, has signaled that he'd support a transaction with the “right partner, on the right terms” after the firm separates its metals business from its coal operations. Shareholder are expected to vote on the plan at an April 26 meeting.

“Given a little time, you'll see broader interest and a real competitive bidding for these assets,” Letko said. “And that's the way I think we're going to get the best price.”


Trudeau team ‘closely’ watching Glencore’s

bid to swallow Teck


Bloomberg News | April 18, 2023 | 

Canada’s Minister of Natural Resources Jonathan Wilkinson.
 (Image courtesy of Province of British Columbia.)

One of Justin Trudeau’s senior cabinet ministers said the Canadian government is monitoring Glencore Plc’s attempted takeover of Teck Resources Ltd., pointing out that the country benefits from having the headquarters of major companies.


“We are following it very closely,” Natural Resources Minister Jonathan Wilkinson said Monday in a phone interview. But he added that his cabinet colleagues won’t pre-judge the “commercial conversations” that are taking place.

Wilkinson said Teck is an important player in Canada’s mining sector not just because of critical minerals projects, but also as a contributor to the economy of his home province of British Columbia, including its coal business.

Teck is racing to secure investor support for its plan to separate its coal and metals assets — on which shareholders are scheduled to vote next week — while fending off an unsolicited $23 billion takeover offer from Swiss commodities giant Glencore for the whole company.

Wilkinson said it’s a “positive thing for Canada” to have major companies headquartered locally.

“We are a country that would love to have more corporate offices in this country that actually drive research and development spending,” he said. “And so obviously we are watching this with great interest and certainly having conversations.”

But the minister stressed that he won’t jump ahead of talks between the commercial players, or any potential deal review that would be overseen by his cabinet colleague, Industry Minister François-Philippe Champagne.

Teck shares rose to a record close of C$65.15 in Toronto on Monday after controlling shareholder Norman Keevil said the company is willing to consider deals after it’s finished spinning off the coal business.

Canada’s investment law gives the government some latitude to block foreign takeovers of large companies, though the power has not been used frequently. After allowing a string of mega-takeovers in the mining and metals sector in the early 2000s, the government in 2010 blocked BHP Group’s proposed takeover of Potash Corp. of Saskatchewan.

Last year, Trudeau’s government ordered Chinese firms to divest of three junior lithium miners and promised tougher rules for investment in the critical minerals sector.

(By Brian Platt)


Uranium price showing resilience relative to other commodities – report

MINING.com Editor | April 18, 2023 |
Stock image.

The U3O8 uranium spot price fell slightly from $50.85 to $50.70 in March and remains up 4.93% year-to-date as of March 31, 2023, showing strength relative to other commodities, which declined 6.47% YTD (as measured by the BCOM Index), Sprott Asset Management said in its latest uranium report.


Over the longer term, uranium has demonstrated even greater resilience within the commodity space, Sprott added. For the five years ended March 31, 2023, U3O8 spot appreciated a cumulative 140.95% compared to 20.62% for the BCOM.

Physical uranium and uranium stocks have outperformed other asset classes over past five years. Credit: Sprott

“We believe that uranium market fundamentals, which are the most positive in over a decade, will continue to support prices. Physical uranium, which demonstrates low correlation to other major asset classes, also shows low historical correlation to other commodities,” said Jacob White, ETF product manager at Sprott Asset Management.

“These characteristics make uranium an attractive option when considering portfolio diversification,” he added.

Uranium spot demonstrates low correlation to other commodities. Credit: Sprott

Uranium mining equities, in contrast to physical uranium, fell 6.74% in March and are off just 1.48% year-to-date, buoyed by January’s stellar performance. Like physical uranium, uranium mining equities have had notable long-term results, having gained a cumulative 138.02% for the five years ending March 31, 2023, Sprott noted.

According to Sprott’s analysis, uranium equities were impacted by March’s challenging headwinds (i.e. the US banking crisis), and smaller-cap, junior uranium miners were the main detractors for the month. However, the firm noted that despite the selling pressure in March, junior uranium miners continue to make progress with production restarts, uranium contracting with utilities and exploration programs.

While the stronger uranium price is encouraging the restart of idle capacity, pricing remains well below the levels required for new greenfield production, Sprott said. In addition, while utilities have contracted to purchase the highest amount of uranium in 10 years, their purchasing activity remains below annual replacement levels.

“The performance of uranium miners in March did not reflect the sector’s increasingly bullish fundamentals. We believe the uranium bull market still has a long way to run. Conversion and enrichment services price increases may likely cascade to the uranium spot price and support uranium miners,” noted White.

“Over the long term, increased demand in the face of an uncertain uranium supply may likely support a sustained bull market,” he added.
Sayona feasibility for North American Lithium mine confirms $1.5 billion value

Staff Writer | April 18, 2023 | 

The NAL processing plant is now again in production. Sayona Mining photo

Having restarted commercial production at its North American lithium (NAL) mine in Quebec last month, Sayona Mining (ASX:SYA) has released the definitive feasibility study for NAL, including the nearby Authier lithium deposit.


The project is given a 20-year life with an average annual mill feed of 1.4 million tonnes. The plant has a capacity of 4,200 t/d, and the average concentrate production during the first four years will be 226,000 tonnes. The all-in sustaining cost will be C$987 per tonne of concentrate.

The NAL project has an after-tax net present value (8% discount) of C$1.4 billion, and the after-tax internal rate of return is 2,545%. Combined with the Authier project, the NPV would reach C$2 billion ($1.5bn). Total capex of the mine and mill restart are C$375.3 million, and the onsite total operating costs are C$2.3 billion, or $597 per tonne of concentrate.

Sayona says proven and probable reserves are 21.7 million tonnes grading 1.08% lithium oxide (Li2O) and containing 235.5 million tonnes Li2O. Reserves are contained in measured and indicated resources, which total 25 million tonnes at 1.23% Li2O for the pit constrained portion, plus 22 million inferred tonnes at 1.2% Li2O.

A 50,000-metre drilling program is scheduled for this year. The first phase will primarily target the conversion of inferred resources to indicated within the pit shell. The northwest and southeast strike extensions at NAL will also be drilled.

NAL and Authier projects are part of Sayona Quebec, owned 75% by Sayona Mining and 25% by Piedmont Lithium (ASX: PLL; NASDAQ: PLL).
Graphic: Hefty shortages to help buoy aluminum prices this year

Reuters | April 18, 2023 | 

Aluminum smelter. Stock Image.

Supply disruptions in China due to problems with hydropower mean hefty shortages of aluminum this year, which are likely to offset slow demand growth and help bolster prices.


Smelter shutdowns in Europe due to high energy prices over the past couple of years and consumers there shunning Russian metal after Moscow invaded Ukraine last year make the problem particularly acute in the region.

Despite expectations of tight supplies, aluminum prices on the London Metal Exchange (LME) have come under pressure due to interest rate hikes in the United States and sluggish demand in top consumer China.


At $2,400 a tonne, they have dropped 10% since mid-January.

However, in recent weeks deficits have emerged, as seen in sliding inventories of aluminum used in the transport, construction and packaging industries.


In warehouses monitored by the Shanghai Futures Exchanges, aluminum stocks at 274,347 tonnes have dropped 12% over the last month. In LME approved warehouses, stocks have fallen 5% since mid-February.

Chinese production should rise, but at a slower pace than previously forecast due to power rationing and disruptions in provinces such as Yunnan where aluminum is mostly smelted using hydroelectricity.

“China’s smelters remain under pressure because of hydropower shortages. At the same time, demand should pick up, so exports will likely remain capped,” said Bank of America analyst Michael Widmer. “We expect rising deficits going forward.”

Widmer expects an aluminum market deficit of 1.53 million tonnes this year and a shortage of 1.93 million tonnes next.


Meanwhile, in Europe, lower power prices have helped to reduce production costs, but smelter restarts are limited.

A scramble for supplies has since mid-January fuelled a 20% jump in the duty-paid aluminum premiums buyers in Europe pay in the physical market – above the LME price – to $330 a tonne.


“Physical premiums managed to hold up in Europe where supply constraints remain following the large smelter cuts last year and Russian metal being diverted to Asia,” Macquarie analysts said in a note.

“Given more Russian metal is expected to flow to China, there should be fundamental support for physical premiums.”

Macquarie forecasts an aluminum market deficit of 670,000 tonnes this year and global consumption at 70.8 million tonnes.

(By Pratima Desai; Editing by Mark Potter)
China’s Yunnan Tin says Myanmar mining halt could hit global supply

Reuters | April 18, 2023 | 

The largest end-use for tin is soldering in semiconductors. 
Image courtesy of Pixabay.

A suspension of mining in Myanmar could lead to further tightening of global supplies of tin, China’s Yunnan Tin, the world’s top refined tin producer, said on Tuesday.


On Monday, Myanmar’s ethnic minority Wa militia said that from August the Wa region – a key tin producer – would suspend all mining activities to protect the remaining resources after more than a decade of “disruptive and wasteful mining”.

The news sent tin prices skyrocketing, with the most-traded May contract on the Shanghai Futures Exchange up as much as 17.5 per cent in two sessions and the benchmark three-month contract on the London Metal Exchange hitting a two-and-a-half month high.



“The company is closely monitoring the Chinese raw material supply,” Yunnan Tin told Reuters in a statement, adding that it would make “timely adjustment to its operations” as the impact on supply hinged on the implementation of the suspension.

The International Tin Association (ITA) said in a report on its website that “it is still unclear how and if these plans will be implemented.”

Myanmar accounted for 77 per cent of China’s tin ore imports last year, Chinese customs data showed. The Wa region is estimated to have accounted for over 70 per cent of Myanmar’s tin production in 2022, the ITA said.

The main tin mine in the self-declared Wa State, which borders China’s Yunnan province, is Man Maw, which produced around 32,000 tonnes of tin in 2020, the ITA said in a 2021 report.

“This tin is generally smelted in China and mining investment is thought to be sourced from China,” the report said.

Less significant tonnages of tin are also mined in Myanmar government-administered areas including the Mawchi mine in Kayah State and the Heinda mine in the Tanintharyi Region of southern Myanmar, the ITA added.

Myanmar is estimated to have the world’s third largest tin reserves at 700,000 tonnes – or 15 per cent of global reserves, behind Indonesia’s 800,000 tonnes and China’s 720,000 tonnes, US Geological Survey (USGS) data in 2023 showed.

Other major tin mining countries include Peru, Democratic Republic of Congo, Bolivia, Brazil and Australia.

Tin is used in the electronics and semiconductor industries.

Shares of Yunnan Tin hit their highest since June 2022 at 17.96 yuan ($2.61) on Tuesday. They jumped 10 per cent in the previous session on the Myanmar news.

Yunnan Tin last year produced 77,100 tonnes of refined tin, around a fifth of global output, ITA data showed.

China is the world’s biggest consumer of tin and is also the top producer of tin ore and refined tin. Four of the world’s top 10 refined tin producers are Chinese, data by the ITA showed.

($1 = 6.8719 yuan)

(By Siyi Liu and Mai Nguyen; Editing by Tom Hogue and Mark Potter)


Column: Tin spooked by threat of supply disruption in Myanmar

Reuters | April 18, 2023 |



Tin prices leapt higher on Monday on news of a possible production halt in Myanmar, the world’s third-largest producer of the soldering metal.


London Metal Exchange three-month tin jumped by 11% to hit a two-month high of $27,705 per tonne and was last trading at $27,180. It took its lead from the Shanghai Futures Exchange (ShFE), which was already seeing record levels of trading activity before the latest turmoil.

The unexpected threat to supply comes in the form of a statement from the Central Economic Planning Committee of the Wa State, Myanmar’s most powerful ethnic armed group that controls the tin-mining area on the border with China.

All mining and processing activities will be “suspended” from the start of August to preserve the remaining resource, according to a document seen by Reuters.

It seems a strange move, given tin is such an important source of revenue for the self-declared Wa State, and there may well be more to the announcement than meets the eye.

But it serves to highlight the importance of one of the most inaccessible parts of southeast Asia to the global tin supply chain.

China’s tin smelters are particularly exposed even though they have been trying to cut their dependence on Myanmar ore.




Myanmar’s tin rush

Myanmar was a significant producer of tin before World War Two but the industry had all but vanished by the end of the last century.

The first anyone knew of a significant new tin find was in 2013 when large quantities of ore and concentrates from Myanmar started turning up in China’s import figures.

Imports from Myanmar grew from 30,000 tonnes in 2012 to 89,000 tonnes in 2013 and mushroomed to almost 500,000 tonnes in 2016. The mid-decade peak coincided with a sharp drop in implied value, suggesting the movement of lower-grade stockpiled metal.

The raw materials import flow has since stabilized at around 150,000-200,000 tonnes a year.

What began as small-scale and artisanal mining quickly became mechanized and semi-formalized as the United Wa State Army (UWSA) took control of the core Man Maw mining area.

The International Tin Association visited the site in 2016 and estimated it was operating close to its 50,000-tonne-per-year contained metal capacity, albeit with significant potential for new finds.

The United States Geological Survey estimates production last year fell to 31,000 tonnes from 36,900 tonnes in 2021, still making the country the world’s third-largest supplier after China and Indonesia.

It’s a controversial one, too, given the UWSA was put on the United States sanctions list in 2003 for alleged narcotics trafficking.
Chinese dependence

The Myanmar tin boom occurred at the right time for China’s tin smelters, many of which were struggling to bring on new mining capacity as Beijing steadily tightened environmental controls on the mining sector.

But the risks of becoming overly dependent on its neighbor became apparent when Covid-19 restrictions massively disrupted both Myanmar’s mining output and the flow of raw materials over the border.

China’s smelters have been busy tracking down new potential sources of tin.

The ratio of Myanmar imports has fallen from nearly 100% of total ore and concentrates imports over the middle of the last decade to 77% in 2022.

Last year’s imports included 23,500 tonnes from the Democratic Republic of Congo, 11,500 tonnes from Australia and 3,000 tonnes from Nigeria as well smaller amounts from Laos, Vietnam, Thailand, Malaysia and Russia.

However, it’s doubtful that supply from alternative sources could be ramped up fast enough or at a sufficient scale to offset the loss, even temporary, of material from Myanmar.



Insecurity of supply

The speed of Monday’s price action says as much about market positioning as it does about the immediate supply impact.

The Shanghai tin market has recently seen extremely elevated levels of trading activity, with both turnover and open interest hitting fresh life-of-contract highs in March. Last month’s volumes of 5.34 million tonnes were 14 times greater than last year’s global production of 380,000 tonnes.

Shifts in ShFE market open interest suggest tin’s new speculative friends have been trading from the short side, or they were until Monday when open interest surged again into the price rally.

The bearish stance made sense given a significant easing in soldering demand from a slowing consumer electronics sector and the build in visible inventory in China.

ShFE-registered stocks have risen by 65% since the start of January to 9,056 tonnes, their highest level since 2017.

That will provide plenty of short-term cushion for Chinese buyers as they and everyone else wait to see if the Wa State is serious about suspending production.

However, the threat alone underscores the fragility of tin supply at a time when Indonesia, the largest exporter of the metal in refined form, is mulling an export ban to stimulate the build-out of downstream processing capacity.

The tin production sector has been chronically under-invested for many years and has ridden its luck on small-scale miners finding the big deposits, as was the case in Myanmar in the 2010s and Brazil in the 1990s.

A failure to diversify supply has left tin’s fortunes at least partly dependent on the shadowy UWSA and its opaque policy-making processes.

This is probably not going to be the last time tin gets spooked by unexpected news from Myanmar.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Paul Simao)