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US feds want up to 8% mining royalty

The Biden administration is advocating for substantial changes to a century-old mining law, dating back 151 years, that oversees the extraction of copper, gold, and other hardrock minerals on federally-owned lands within the United States. One notable shift includes the introduction of royalties on mineral extraction by companies operating on federal lands, a precedent that has been absent until now.

The Interior Department is spearheading a comprehensive plan that encompasses the establishment of a mine leasing framework and enhanced coordination among various federal agencies during the permitting process. This strategic initiative aligns with the White House’s overarching objective of bolstering domestic mining, particularly for minerals essential to electric vehicles, solar panels, and other components of clean energy.

Under the antiquated 1872 law, the United States has not been collecting royalties on minerals extracted from federal lands—an issue that has long troubled Democratic lawmakers and environmental organizations.

You can read more on the matter here.

What’s going on?

• SoftBank-Backed Chip Designer Arm Launches $54-Billion IPO (theDeepDive)

• Kim Jong-un Pledges Unwavering Support for Russia Against Western ‘Imperialism’ (theDeepDive)

• China Cuts Bank Reserve Requirements to Aid Fiscal Stimulus (Bloomberg)

• City Zoning Or Population Growth? The Blame Game for Canada’s Housing Crisis (theDeepDive)

• Justin Trudeau is Fixing Canada’s Housing Crisis by Re-Announcing $4B Housing Fund First Promised in 2021 (theDeepDive)

• India's Nipah virus trackers gather samples from bats, fruit (Reuters)

• Fed Up with the Crisis: Study Finds That 70% of Canadians Want Housing to Go Down (theDeepDive)

• Autoworkers Union Mulls Targeted Strikes Against Automakers As Deal Deadline Looms (theDeepDive)

• NASA installs new chief of UFO research after expert panel report (Reuters)

• Nuclear Plant in Michigan to Become First Decommissioned Facility to Be Reactivated in the US (theDeepDive)

• Niger Boosts Price of Uranium to €200 Per Kilogram From Just $0.80 (theDeepDive)

What’s the latest?

• UAW Strike: The United Auto Workers union and U.S. automakers have not reached a deal in ongoing contract negotiations, increasing the likelihood of a strike. UAW President Shawn Fain criticized the automakers' pay raise proposals and demanded 40% raises and significant benefits improvements, while the automakers urged the UAW to stay at the table and work toward an agreement to avert a strike.

• ECB Hikes Again: The European Central Bank has continued its streak of interest rate hikes to combat stubbornly high inflation, marking the 10th consecutive increase. The benchmark deposit rate now stands at four percent, up dramatically from just over a year ago when it was at minus 0.5 percent.

• Wholesale Inflation: The U.S. producer price index (PPI) rose by 0.7% in August, exceeding expectations, but core PPI, excluding food and energy, increased by 0.2%, in line with estimates. On a year-over-year basis, core PPI reached its lowest annual level since January 2021.

• Empire Earnings: Empire Co. Ltd. reported a profit of $261 million for the latest quarter, up from $187.5 million in the same quarter the previous year. This increase was attributed to the sale of its 56 gas stations in Western Canada to Shell Canada. Same-store sales increased by 3.0%, with same-store sales excluding fuel up by 4.1%.

• Twitter Severance Claims: Elon Musk's X Corp. has agreed to mediate claims by former Twitter employees who allege they were denied severance pay after Musk's acquisition of the social media platform. Nearly 2,000 former Twitter employees have pursued their claims in arbitration as demanded by the company, but attorney Shannon Liss-Riordan, representing the workers, has stated that Twitter has not participated in these proceedings.

The world is short on helium

The stock market and stuff

• Tesla reinvents carmaking with quiet breakthrough (Reuters)

• This New Video-Based AI-Powered Tool Lets You ‘Speak’ In Another Language (theDeepDive)

• SoftBank’s Arm Indicated to Open Higher in New York Debut (Bloomberg)

In the juniors

• Laurentian Bank Concludes Strategic Review Without Sale Of Business (theDeepDive)

• Canopy Growth Places BioSteel Sports Division Into Bankruptcy Proceedings (theDeepDive)

• First Phosphate Enters MOU For Production Of Up To 40,000 Tonnes of LFP Cathode Active Material (theDeepDive)

FULL DISCLOSURE: LNG Energy Group is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of LNG Energy Group. The author has been compensated to cover LNG Energy Group on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.