Latest news with #U.S.Export-ImportBank
Reuters
01-05-2025
- Business
- Reuters
US Ex-Im Bank votes to reverse ban on overseas coal lending, observers say
WASHINGTON, May 1 (Reuters) - The board of the U.S. Export-Import Bank voted on Thursday to reverse a years-long restriction on lending to coal projects overseas, reflecting President Donald Trump's agenda that calls for more domestic coal mining and exports of U.S. coal, according to three people who observed the meeting. The vote happened less than a month after the White House issued an executive order aimed at reviving the U.S. coal industry, which included a measure directing Ex-Im and the International Development Finance Corporation (DFC) to open up facilities for coal developers. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The federal bank, which finances projects overseas, had aimed to account for climate change impacts in investment decisions under the Biden administration and had not financed a coal project for more than a decade. "Ex-Im's decision to allow U.S. taxpayer money to be used to finance overseas coal projects is an economic and climate disaster. It takes Ex-Im's policies back two decades, when it was one of the largest financiers of overseas coal projects in the world," said Jake Schmidt, senior strategic director at the Natural Resources Defense Council, who was an observer at the board meeting. Ex-Im did not respond to a request for comment.
Japan Times
26-04-2025
- Business
- Japan Times
Trump moves to ramp up deep-sea mining for critical minerals
U.S. President Donald Trump has signed an executive order intended to accelerate offshore mining and open new opportunities for extracting critical materials from the ocean floor despite the objections of environmentalists. The measure directs the Commerce Department to speed up reviewing and issuing permits for exploration and commercial recovery under a 1980 law, according to senior White House officials who briefed reporters on the action Thursday. While the permits could cover territory far beyond the U.S. Outer Continental Shelf, the president is also setting in motion potential seabed mining within U.S. coastal waters. Under Trump's order, Interior Secretary Doug Burgum is charged with establishing a process for approving permits and granting licenses for seabed mining in U.S. waters, under the same law that has long governed oil drilling there. The White House in a fact sheet cast the order as one of several steps Trump has taken "positioning the United States at the forefront of critical mineral production and innovation.' The president is also ordering a raft of reports, including a study of using the U.S. National Defense Stockpile for minerals contained within sea deposits and an assessment of private-sector interest in the activity. The order directs the U.S. International Development Finance Corp. and the U.S. Export-Import Bank to study options for providing financing and other support for exploration, extraction, processing and environmental monitoring of seabed resources. Trump's directive comes amid increasing concern over new Chinese curbs on the export of rare-earth materials used in electric vehicle batteries, smartphones and other technology, a response to Trump's tariffs. China's moves have generated worries about obtaining alternate supplies for the metals given the country's dominance in mining and refining them. The executive order drew fire from Beijing. Trump's plan breaks international law because it will apply to areas of the sea floor that "do not belong to any country,' China Foreign Ministry spokesman Guo Jiakun said on Friday at a daily press briefing. Deep-sea mining is seen by the administration as another avenue for extracting rare-earth elements such as manganese, cobalt, nickel and copper, helping wean the U.S. off foreign suppliers and opening new export opportunities. Over 10 years, a seabed mineral extraction industry could yield 100,000 jobs and hundreds of billions of dollars in economic benefits, one of the White House officials said. Mining advocates have warned that without action, the U.S. and allies risk forfeiting seabed mineral extraction to China. In a report earlier this month, the Rand Corp. estimated that production from seabed mining would decrease metal prices and could produce enough nickel and cobalt to meet projected U.S. demand in 2040. The materials are essential ingredients in lithium-ion batteries. Trump's order is expected to benefit The Metals Company (TMC), which for years has sought to collect mineral-rich deposits that cover the seafloor in the Clarion-Clipperton Zone, international waters in the Pacific Ocean between Hawaii and Mexico. The Vancouver-based company's push has been complicated by a long-running debate over potential regulations from the United Nations-affiliated International Seabed Authority that governs the region. TMC said last month it was pursuing exploration licenses and commercial recovery permits from the Trump administration under the 45-year-old Deep Seabed Hard Mineral Resources Act. Any move to approve permits — with the U.S. effectively circumventing the International Seabed Authority — has been criticized as a violation of the U.N. Convention on the Law of the Sea that established the body. It also threatens to disrupt more than a decade of negotiations to enact regulations that would allow mining to commence. Environmentalists are seeking stiffer international regulation of deep-sea mining, warning that the activity could imperil key marine habitats and the organisms that live on the ocean bottom. The Law of the Sea Treaty established the ISA, but since the U.S. is not a signatory, conservatives have argued the U.S. government should not voluntarily submit to it. That treaty also reserved some mining areas in the Clarion-Clipperton Zone for the U.S. in case the country eventually acceded to the convention. The U.S. in turn enacted the deep sea mineral resources law, which spells out procedures for U.S. companies to gain access to materials there. TMC holds two ISA licenses to prospect for cobalt, nickel and other metals found in polymetallic nodules — potato-sized rocks rich in those materials. TMC and other ISA-licensed companies, however, can't begin mining until the organization develops regulations to govern the practice. The company has defended its move to seek U.S. permits. TMC Chief Executive Officer Gerard Barron said in a statement last month that the company had complied with the terms of its ISA contract but the organization failed to fulfill its duty under the treaty to enact regulations. "I'm not sure why ISA member states act surprised that TMC is now looking at an alternative, longstanding regulatory regime,' he said at the time.
Los Angeles Times
24-04-2025
- Business
- Los Angeles Times
Trump moves to ramp up deep-sea mining for critical minerals
WASHINGTON — President Trump has signed an executive order intended to accelerate offshore mining and open new opportunities for extracting critical materials from the ocean floor despite the objections of environmentalists. The measure directs the Commerce Department to speed up reviewing and issuing permits for exploration and commercial recovery under a 1980 law, according to senior White House officials who briefed reporters on the action Thursday. While the permits could cover territory far beyond the U.S. Outer Continental Shelf, the president is also setting in motion potential seabed mining within U.S. coastal waters. Under Trump's order, Interior Secretary Doug Burgum is charged with establishing a process for approving permits and granting licenses for seabed mining in U.S. waters, under the same law that has long governed oil drilling there. The White House in a fact sheet cast the order as one of several steps Trump has taken 'positioning the United States at the forefront of critical mineral production and innovation.' The president is also ordering a raft of reports, including a study of using the U.S. National Defense Stockpile for minerals contained within sea deposits and an assessment of private-sector interest in the activity. The order directs the U.S. International Development Finance Corporation and the U.S. Export-Import Bank to study options for providing financing and other support for exploration, extraction, processing and environmental monitoring of seabed resources. Trump's directive comes amid increasing concern over new Chinese curbs on the export of rare-earth materials used in electric vehicle batteries, smartphones and other technology, a response to Trump's tariffs. China's moves have generated worries about obtaining alternate supplies for the metals given the country's dominance in mining and refining them. Deep-sea mining is seen by the administration as another avenue for extracting rare-earth elements such as manganese, cobalt, nickel and copper, helping wean the U.S. off foreign suppliers and opening new export opportunities. Over 10 years, a seabed mineral extraction industry could yield 100,000 jobs and hundreds of billions of dollars in economic benefits, one of the White House officials said. Mining advocates have warned that without action, the U.S. and allies risk forfeiting seabed mineral extraction to China. In a report earlier this month, RAND estimated that production from seabed mining would decrease metal prices and could produce enough nickel and cobalt to meet projected U.S. demand in 2040. The materials are essential ingredients in lithium-ion batteries. Trump's order is expected to benefit The Metals Company, or TMC, which for years has sought to collect mineral-rich deposits that cover the sea floor in the Clarion-Clipperton Zone, international waters in the Pacific Ocean between Hawaii and Mexico. The Vancouver-based company's push has been complicated by a long-running debate over potential regulations from the United Nations-affiliated International Seabed Authority that governs the region. TMC said last month it was pursuing exploration licenses and commercial recovery permits from the Trump administration under the 45-year-old Deep Seabed Hard Mineral Resources Act. Any move to approve permits — with the U.S. effectively circumventing the International Seabed Authority — has been criticized as a violation of the UN Convention on the Law of the Sea that established the body. It also threatens to disrupt more than a decade of negotiations to enact regulations that would allow mining to commence. Environmentalists are seeking stiffer international regulation of deep-sea mining, warning that the activity could imperil key marine habitats and the organisms that live on the ocean bottom. The Law of the Sea Treaty established the ISA, but since the U.S. is not a signatory, conservatives have argued the U.S. government should not voluntarily submit to it. That treaty also reserved some mining areas in the Clarion-Clipperton Zone for the U.S. in case the country eventually acceded to the convention. The U.S. in turn enacted the deep sea mineral resources law, which spells out procedures for U.S. companies to gain access to materials there. Dlouhy and Lai write for Bloomberg News.
Zawya
31-03-2025
- Business
- Zawya
Trump's Second Term: A Rare Opportunity for Real African Energy Independence (By NJ Ayuk)
By NJ Ayuk, Executive Chairman, African Energy Chamber ( Donald Trump's return to the White House in 2025 represents a pivotal moment for Africa's fossil fuel industry. His administration's swift reapproval of a USD4.7 billion loan from the U.S. Export-Import Bank (Exim) for TotalEnergies' liquefied natural gas (LNG) project in Mozambique — initially greenlit in 2020 during his first term but sent into deep-freeze for the full duration of the Biden years — sets the tone for what could be a transformative era for Africa's energy sector. Despite Mozambique's stabilization of security issues and concerns that the transfer of power in America would delay receipt of the loan even further, the Biden Administration refused to release the funds ahead of Trump's inauguration, a decision reflective of the administration's reluctance to support new fossil fuel initiatives throughout Biden's time in office. In contrast, Trump's decisive action within weeks of taking office signals a renewed, positive working relationship between the United States and Africa — one that prioritizes energy development over ideological objections and the Green Agenda's influence. The African Energy Chamber (AEC) contends that Africa should seize this potentially brief moment in history and embrace the Trump administration as a partner rather than an opponent. For too long, global pressures have insisted that African nations move toward green energy projects only and leave their fossil fuel resources behind. While renewable energy has its place, and will be important to Africa's future, fossil fuels still clearly constitute the backbone of any realistic efforts for African industrialization and economic growth — goals we simply cannot afford to sideline. Alignment with Trump's energy-first ethos would mean that Africa could unlock significant funding for wide-ranging fossil fuel projects, and not just the offshore oil and gas ventures that dominate the headlines. The continent should capitalize on all opportunities in onshore projects, wildcat wells (exploratory drilling in unproven areas), and the proliferation of numerous small operators. These avenues lead the way to diversity in Africa's energy portfolio, job creation, and massively strengthened energy security. The reapproval of funding for Mozambique LNG is a case in point. The project's revival under Trump demonstrates how quickly thick bureaucratic congestion can dissolve when political will aligns with economic practicality. This USD4.7 billion infusion will boost Mozambique's economy while sending a message to other African nations: Under Trump, at long last, America is open for business. In contrast to the previous administration, which openly regarded fossil fuel development with skepticism and disdain, Trump's 'drill baby drill' mantra — while rooted in an 'America First' agenda — pairs seamlessly with the ambitions of the African oil and gas industry. Africa should adopt a similar mindset and position itself as an attractive destination for American investment dollars. Coal's Comeback Another of Trump's domestic priorities, no doubt a response to China's unabashed expansion of coal production within its borders, is to revive clean coal production in the U.S. This initiative offers a compelling blueprint for Africa. While coal remains a contentious, harshly criticized resource globally, its advantages are undeniable: It's cheaper to produce, often doesn't require big bank financing, and is abundant across the continent. For African nations grappling with energy poverty, coal can serve as a means to an end, delivering affordable power to millions in the interim while the infrastructure for other energy sources matures. Simply put, Africa deserves to be the last global holdout on coal production and should leverage its coal reserves to meet domestic needs and export demands. Trump's willingness to disregard the international campaign against coal should embolden African leaders to reopen their abandoned coal mines and rest assured that this time around, they'll be able to operate freely, without fear of U.S. opposition. Fossil Fuels Unleashed Looking beyond coal, over the next four years, Africa has the rare chance to pursue an aggressive fossil fuel agenda. The continent should unite under an 'Africa First' banner and adopt its own 'drill baby drill' mentality in support of every promising oil exploration and production project, every possible natural gas project, and a multinational effort to slash through regulatory red tape. In Nigeria, for instance, the wheels of progress moved agonizingly slowly when it came to passing the Petroleum Industry Act, first proposed in 2008 and not signed into law until 2021. Even after the law was passed, Nigeria has been slow to fully implement it. This kind of inertia deters investment and slows development. A Trump-inspired push to clean up such bureaucratic roadblocks could unleash a wave of prosperous development. Similarly, addressing security issues — like those that drove U.S. firms out of Libya — will be critical to restoring confidence and attracting capital from abroad. While the offshore sector will undoubtedly remain a cornerstone of Africa's fossil fuel strategy, the continent's onshore potential is equally vast. Wildcat wells offer high-risk/ high-reward prospects that could uncover new reserves. Meanwhile, instead of relying solely on multinational oil and gas giants, empowerment of more independent companies and indigenous small operators could diversify the industry, build up local entrepreneurship, and ensure the economic benefits are more widespread. It is highly unlikely that the Trump administration, with its emphasis on deregulation and energy independence for its own shores, would obstruct such efforts on ours. Conversely, it may actively encourage them through financing and technical support, as seen with the Exim loan. Balancing Development and Climate Realities Though critics will argue that this push for fossil fuel proliferation contradicts global climate goals, at the AEC, we insist that the calculations for Africa are simply different. Africa accounts for a fraction of global emissions but bears a disproportionate burden when it comes to energy poverty. Fossil fuels offer a realistic and relatively quick path to electrification and industrialization, the proven prerequisites for lifting millions out of poverty. Trump's indifference to international climate orthodoxy, while controversial, gives Africa the much-needed breathing room to prioritize development over decarbonization. This is in no way an outright rejection of renewables but a recognition that fossil fuels can and will facilitate a just transition to green technologies once their capabilities catch up to Africa's current needs. Seizing the Moment The next four years under Trump could redefine Africa's energy landscape. With U.S. interference a thing of the past, Africa can pursue a multi-pronged energy strategy. With a ramp-up in natural gas to meet global demand, a coal revival to power its own grids, and on and offshore opportunities tapped into, Africa could finally secure its full resource base. However, this approach will require bold leadership. Governments will have to eliminate obstructive policies and address security challenges head-on to secure foreign investments. The payoff could be immense: energy abundance, economic growth, and a partnership with the U.S. that is stronger than ever before. For example, Nigeria's oil and gas sector has been hampered by regulatory uncertainty and security threats in the Niger Delta. A Nigerian 'drill baby drill' mindset could accelerate regulatory, social, and economic reforms needed to address the Niger Delta's deep-rooted instability. This kind of mindset could restart stalled projects and attract American firms eager to invest in a Trump-approved climate. Likewise, in Libya, a resolution to security concerns could lure back U.S. companies that fled during years of instability, reviving a once-thriving oil industry. Across the continent, small operators could flourish under a lighter regulatory touch, drilling wildcat wells and tapping into overlooked reserves. South Africa, with its vast coal deposits, could take the lead on clean coal technologies to balance affordability and environmental concerns. Smaller nations with untapped coal reserves could follow Trump's lead in defying global pressures against production. The result would be a continent less dependent on foreign aid and more capable of powering its own future. Trump's presidency offers Africa a chance to unapologetically double down on its fossil fuel potential. The USD4.7 billion Mozambique loan is just the beginning — a proof of concept for what collaboration with the U.S. can achieve. By embracing this partnership, Africa can shed the shackles of the Biden era and chart a course toward energy sovereignty. The tools are all there: offshore rigs, onshore fields, wildcat wells, established mines, and a willing ally in Washington. The question that remains is whether Africa's leaders have the courage to stand up to the anti-carbon lobby. Trump's second term could be remembered as the moment Africa's fossil fuel industry came into its own — as a partner to the U.S. in a shared vision of energy abundance. With four years of clear skies ahead, there is no question that Africa should build, mine, and yes, drill, baby, drill like never before. If we don't act now, it might be a very long wait for an opportunity like this one to present itself again. Distributed by APO Group on behalf of African Energy Chamber.
Reuters
25-03-2025
- Business
- Reuters
Rare Element Resources nears $553 million funding for Bear Lodge Project
March 25 (Reuters) - Rare Element Resources ( opens new tab said on Tuesday the U.S. Export-Import Bank has expressed willingness to provide a loan of up to $553 million for its rare earths Bear Lodge Project in northeast Wyoming. WHY IS IT IMPORTANT Earlier this month, U.S. President Donald Trump invoked emergency powers to boost domestic production of critical minerals as part of a broad effort to offset China's near-total control of the sector. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. The executive order directed federal agencies, including EXIM, to unlock permitting, funding and offtake agreements for critical minerals, including rare earths. The move is the latest by Trump to increase U.S. energy and minerals production and comes against the backdrop of an escalating trade conflict with China, Canada and other large minerals producers that supply American manufacturers. CONTEXT Bear Lodge contains many critical rare earths that are essential for high-strength permanent magnets, electronics, fiber optics, defense, as well as technologies like electric vehicles, solar panels, and wind turbines. BY THE NUMBERS The company has said operations at the demonstration plant are expected to commence in mid-2025 and operate for up to 10 months and produce up to 10 tons of Nd/Pr oxide, a material used in the production of permanent magnets. The start will support discussions with potential partners and customers, it has said.
