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Feb 11
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$206.52
$192.66
-6.7%
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LONG
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Doug Burgum
US Secretary of the Interior
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Burgum announces the creation of a "Strategic Critical Minerals Reserve" for 60 elements, funded by private sector capital but backed by government "price floors" to block China from "illegal dumping to kill the price." The primary risk for Western miners has been China crashing spot prices to bankrupt competitors. A US-guaranteed price floor effectively creates a "government put option" on production, de-risking capital expenditure for domestic miners of Rare Earths (MP), Copper (FCX/SCCO), and Lithium. LONG. The removal of downside price risk via government policy is a massive structural catalyst for US/Allied miners. Implementation delays or legislative hurdles in funding the reserve. |
Bloomberg Markets
Coal Kept the Lights On During Storms, Burgum...
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