2025-05-22 22:32

Rio Tinto secures ENAMI's Altoandinos project and Codelco's Maricunga project Rio's DLE expertise from Argentina gives it competitive edge in Chile Maricunga Construction of Maricunga likely to start in 3-5 years after permit updates SANTIAGO, May 22 (Reuters) - Global miner Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab will tackle one of the biggest technological challenges in the lithium industry as it takes the lead in Chile's first major projects involving the battery metal in years, alongside state-run mining companies Codelco and ENAMI. Codelco's Maricunga project and ENAMI's Altoandinos project represent a new pivot in Rio's lithium ambitions and a turning point for Chile, which for many years had only two companies - Chile's SQM (SQMA.SN) , opens new tab and U.S.-based Albemarle (ALB.N) , opens new tab - extracting the metal that powers electric vehicles. Sign up here. Rio will spearhead the operational side of both projects, with nearly 50% ownership at Maricunga and 51% at Altoandinos. The plans came the same week that Rio announced on Thursday the surprise departure of its CEO Jakob Stausholm, who led the miner's big bets on lithium, later this year. As Rio raises its profile in lithium, a major challenge will be deploying new technology, called direct lithium extraction, or DLE, to separate the ultralight metal from salty brine liquid. It is meant to be more environmentally friendly and efficient than conventional methods, industry experts say, but has yet to be proven widely in the industry and has never been used in Chile at commercial scale. The technical challenge comes against a backdrop of uncertainty for lithium prices, which have fallen nearly 90% since late 2022 due to oversupply and weak demand for EVs. "Scaling it in line with global demand timelines remains uncertain," said Nicole Porcile, a partner at mining consulting firm Anagea. "The ability to deliver at scale, efficiently and reliably will be a decisive factor in the project's competitiveness and investor confidence." Rio has a DLE pilot plant at its Rincon project in Argentina, and recently acquired U.S.-based Arcadium, which employs a mix of DLE and traditional extraction methods. That DLE know-how gave Rio an edge over three final competitors to partner with copper giant Codelco, said a person familiar with the Maricunga deal. Still, Rio and Codelco must now hammer out which kind of DLE will work sustainably and effectively at Maricunga, one of the world's most lithium-rich salt flats. "That's certainly the goal: to develop and operate this in the most environmentally friendly manner possible because Codelco is well aware that they'll be under the microscope," the person said. Codelco's search for a Maricunga investor attracted Middle Eastern, Chinese and Western companies, the person added, speaking on condition of anonymity because the talks were private. Construction is expected to start in three to five years, once environmental permits are updated. Codelco has proposed a gradual transition to DLE, but Rio Tinto is aiming to use DLE from the start, with lower costs relative to other DLE projects, said a second person familiar with the matter. ARGENTINA EXPERIENCE Rio told Reuters its Argentina experience provided strong footing for future projects. "We are therefore confident in the application of our technology to Maricunga and potentially to other lithium salt flats in Chile," a spokesperson said. Rio will spend up to $900 million at Maricunga, and lead design, construction, operation and sales. At Altoandinos, it plans to initially contribute $425 million to the project to fund studies required before a final investment decision. Rio is the only major mining company to bet heavily on lithium, accelerating its push with a second deal in six months at a time of low market prices. "We have not heard from investors that they want to see further investment in lithium," RBC Capital Markets said in a note. Codelco hired investment bank Rothschild to scout for candidates for the Maricunga project. And at the same time, it is set to soon close a deal to partner with Chile's SQM at the Atacama salt flat. Benchmark Minerals analyst Federico Gay noted that Rio and Codelco will have to carefully prioritize. "Too many fronts (are) open for both companies, in a moment when justifying large investments for lithium is challenging." Rio, which could be granted an intellectual property permit if its DLE technology is used for the project, will hold a majority of seats on a technical committee with Codelco, and will move to a 50-50 split once production begins, according to a filing with Chile's financial regulator. ENAMI ran its own selection process separately, attracting bids from Chinese electric vehicle maker BYD (002594.SZ) , opens new tab, French miner Eramet (ERMT.PA) , opens new tab, and South Korean steel group Posco (005490.KS) , opens new tab, as well as financing proposals from China's CNGR Advanced Material Co Ltd (300919.SZ) , opens new tab and South Korea's LG Energy Solution (373220.KS) , opens new tab. https://www.reuters.com/world/americas/rio-tintos-chile-deal-is-bet-unproven-tech-lithium-price-bounce-2025-05-21/

2025-05-22 22:19

NEW YORK, May 22 (Reuters) - Phillips 66 (PSX.N) , opens new tab is expected to lay off most workers at its 139,000-barrel-per-day Los Angeles-area refinery in December, sources familiar with the matter said on Thursday. The company announced in October it would close the facility and begin winding down operations in October 2025. The workforce reduction will begin two months later. Sign up here. The Los Angeles facility has about 600 employees and 300 contractors. Over half of the employees are hourly workers represented by the United Steelworkers Union. A few retained workers will be transferred to Phillips 66's Los Angeles marine oil terminal, the sources said. "Since the announcement was made to idle these facilities, Phillips 66 has stated its commitment to helping employees and contractors through this transition," a Phillips 66 spokesperson said. The spokesperson declined to comment on plans after the closure of the Los Angeles-area refinery. Valero Energy (VLO.N) , opens new tab also announced this year its decision to close the 145,000-bpd Benicia refinery, one of its two remaining refineries in the state. The two refineries produce roughly 20% of the state’s gasoline supply. https://www.reuters.com/business/world-at-work/phillips-66s-los-angeles-refinery-layoffs-begin-december-sources-say-2025-05-22/

2025-05-22 21:46

WASHINGTON, May 22 (Reuters) - U.S. President Donald Trump will sign executive orders as soon as Friday that aim to jumpstart the nuclear energy industry by easing the regulatory process on approvals for new reactors and strengthening fuel supply chains, four sources familiar said. Facing the first rise in power demand in two decades from the boom in artificial intelligence, Trump declared an energy emergency on his first day in office. Sign up here. Chris Wright, the energy secretary, has said the race to develop power sources and data centers needed for AI is "Manhattan Project 2", referring to the massive U.S. program during World War II to develop atomic bombs. A draft summary of the orders said Trump will invoke the Cold War-era Defense Production Act to declare a national emergency over U.S. dependence on Russia and China for enriched uranium, nuclear fuel processing and advanced reactor inputs. The summary also directs agencies to permit and site new nuclear facilities and directs the Departments of Energy and Defense to identify federal lands and facilities for nuclear deployment and to streamline processes to get them built. It also encourages the Energy Department to use loan guarantees and direct loans to increase the build out of reactors. Trump only used the Loan Programs Office in his first administration to support a large nuclear plant in Georgia. The LPO has now has hundreds of billions of dollars in financing thanks to legislation passed during former President Joe Biden's administration, but has been hit hard by job cuts during Trump's second administration. The White House did not immediately respond to a request for comment. The exact text and wording of draft executive orders is subject to frequent changes and there is no guarantee elements of the EOs will not be excised or modified during the final stages of the review process. The United States was the first developer of nuclear power and has the most nuclear power capacity in the world, but the energy source is now growing the fastest in China. One of the sources said officials from the industry including the Nuclear Energy Institute and Constellation (CEG.O) , opens new tab, a utility with the biggest U.S. reactor capacity, were invited to attend a signing ceremony Friday afternoon. Constellation and NEI did not immediately respond to requests for comment. The Trump administration has been debating four draft executive orders to boost nuclear power that sought ways to give the administration more power to approve reactors and reform the Nuclear Regulatory Commission, the body of five panelists that approves reactors. Nuclear is popular with Democrats for being virtually free in carbon emissions and with Republicans for providing reliable electricity compared to wind and solar power which can be intermittent, a problem that can be managed with battery storage. Nuclear power produces radioactive waste which for which there is no permanent repository in the United States. https://www.reuters.com/business/energy/trump-sign-orders-boost-nuclear-power-soon-friday-sources-say-2025-05-22/

2025-05-22 21:41

MAHA report criticizes highly processed foods and additives in American diet It does not call for specific regulatory changes or policies Farm group have warned that further regulation could hurt food production WASHINGTON, May 22 (Reuters) - A commission led by U.S. Health Secretary Robert F. Kennedy Jr. on Thursday issued a report that said processed food, chemicals, stress and overprescription of medications and vaccines may be factors behind chronic illness in American children. The report, from the commission named after the Make America Healthy Again, or MAHA, social movement aligned with Kennedy, is focused on what he says is a national crisis of increasing rates of childhood obesity, diabetes, cancer, mental health disorders, allergies and neurodevelopmental conditions like autism. Sign up here. "MAHA is hot," President Donald Trump said during a press event. "We will not allow our public health system to be captured by the very industries it's supposed to oversee." Kennedy said there was consensus among the commission's members to prioritize what he called the ultra-processed food crisis and to work to improve the food American children eat. The report also highlighted studies linking health disorders in humans and animals to the weed killers glyphosate and atrazine, but did not call for specific regulatory changes or restrictions on pesticides used in farming. It said the chemicals should be further researched. It criticized the U.S. approach to vaccines in children, saying European children are recommended to receive fewer. He called for study of the impact of vaccines on childhood chronic disease and of vaccine injuries. Kennedy, a longtime vaccine skeptic, has for many years pushed debunked theories about the safety of vaccines contrary to scientific evidence. As head of the agency, he has overseen cuts of about 20,000 of 80,000 employees due to layoffs and departures. Peter Lurie, president of the Center for Science in the Public Interest, a food and health watchdog, said the report recycles longtime concerns of Kennedy, from vaccines to seed oils. "To the extent that they come up with good ideas, they're going to run into the self-inflicted wound of their own decimation of the federal workforce. Many of their better ideas will not be doable," Lurie said. Many of the MAHA activists that surround Kennedy were present in Washington for the release of the report, which they largely applauded as a vindication of their work. But, one such activist, Kelly Ryerson, who campaigns against the use of glyphosate-based pesticides, called the report “very cautious on the subject of pesticides,” adding that she’d like to see more Environmental Protection Agency action on the topic. Bayer (BAYGn.DE) , opens new tab, which is involved in thousands of lawsuits surrounding its glyphosate-based herbicide Roundup, said some details around pesticides in the report were not "fact based." "We believe a fact and data-driven approach with robust science that follows international gold standards is necessary to support these important initiatives," Bayer said. As an environmental lawyer, Kennedy was associated with three lawsuits related to Roundup, which is owned by Bayer after its acquisition of Monsanto. ULTRAPROCESSED FOOD The food industry has said that additives in packaged food have been thoroughly reviewed by regulators and help it remain shelf stable. The American Soybean Association was critical of the report, which they said was "drafted entirely behind closed doors" and inaccurately suggests that pesticides and soy oils contribute to negative health outcomes. "We’re discouraging people from consuming heart-healthy oils and driving them to instead use fats that will make them less healthy and cost them more in the process," said ASA Director Alan Meadows, a soybean farmer. Marion Nestle, a professor of nutrition at New York University, told Reuters the report was "a devastating critique of what's happened to America's children." But she said, "to deal with the root causes of the conditions detailed here, this administration will have to take on Big Food, Big Pharma, Big Agriculture, Big Chemical, and get coal-burning plants to clean up their emissions. A lot of this is counter to the MAGA agenda, and the decimation of federal agencies can’t help." The report called for enhanced surveillance and safety research into drugs and childhood health outcomes and clinical studies comparing whole-food to processed-food diets in children. The definition of ultra-processed food is hotly debated, while the report describes it as industrially manufactured products. The report says that core products of so-called "Big Food", which typically references companies such as Kraft Heinz (KHC.O) , opens new tab, Nestle (NESN.S) , opens new tab and PepsiCo (PEP.O) , opens new tab, are ultra-processed. Kraft Heinz manufactures Heinz Ketchup and Kraft mac & cheese, Nestle produces frozen pizzas and dinners under the Stouffer's and Lean Cuisine brands, while PepsiCo owns Frito-Lay, a salty snacks business. The report also cites infant formula as an ultra-processed food that is concerning. FARM LOBBY PRESSURE Thursday's report will be followed by policy prescriptions due in August. Trump signed an executive order in February establishing the commission whose members include Kennedy, Agriculture Secretary Brooke Rollins, other cabinet members and senior White House officials. Before the report's publication, farm lobby groups had warned that criticizing specific farm practices could impede collaboration on the administration's health agenda and put food production at risk. According to a source familiar with the matter, the lobby groups had strongly pressured the administration to not mention pesticides in the report. EPA head Lee Zeldin said on a call with reporters that farmers are key partners in enacting the MAHA agenda and that any changes to pesticide regulations would need careful consideration. https://www.reuters.com/business/healthcare-pharmaceuticals/white-house-report-outline-causes-americas-declining-health-2025-05-22/

2025-05-22 21:29

May 22 (Reuters) - Crypto exchange Kraken said on Thursday it is launching tokens of U.S. equities that will trade around the clock, giving non-U.S. investors exposure to high-profile companies such as Apple (AAPL.O) , opens new tab, Tesla (TSLA.O) , opens new tab and Nvidia (NVDA.O) , opens new tab. Tokenization refers to the process of issuing digital representations of publicly-traded securities. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities. Sign up here. The tokens' launch outside the U.S. comes amid growing interest in blending traditional finance with blockchain infrastructure. While tokenized securities have yet to gain widespread adoption, proponents say they hold the potential to significantly reshape how people access and invest in financial markets. In a January opinion piece for the Washington Post, Robinhood (HOOD.O) , opens new tab CEO Vlad Tenev said tokenization could also allow retail investors to access private companies' stocks. Kraken's tokens, called xStocks, will be available in select markets outside the United States, it said, without naming the markets. The move was earlier reported by the Wall Street Journal. The offering is currently not available for U.S. customers. The renewed enthusiasm for blockchain has also coincided with bitcoin's rally as investors anticipate lighter regulation under President Donald Trump. https://www.reuters.com/business/autos-transportation/kraken-allow-trading-apple-tesla-nvidia-shares-digital-tokens-wsj-reports-2025-05-22/

2025-05-22 21:28

Super-long JGB yields soared to all-time highs this week Ueda says high uncertainties to stay over tariff fallout Japan finmin says G7 touched upon fiscal health BANFF, Alberta, May 22 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will closely monitor market moves as yields on super-long Japanese government bonds (JGB) reached record highs this week. "I would decline to comment specifically on short-term developments of interest rates, but of course we will continue to monitor the market carefully," he told a news conference after attending meetings of finance leaders from the Group of Seven major economies. Sign up here. Asked about uncertainties stemming from U.S. tariff policies, Ueda acknowledged some progress in trade negotiations between the U.S. and China, as well as the U.S. and Britain. "But the outlook of the tariff policies remains highly uncertain, and regardless of how the policies will settle, extremely high uncertainties will stay over how they will impact the economy," Ueda said. "We'll be in the phase where we must examine data. That's how I see it, and shared by many of the (G7) participants," he added. Fears of a Trump-induced global slowdown have forced the BOJ to sharply cut its growth forecasts at its April 30-May 1 policy meeting, and cast doubt on its view that sustained wage hikes will underpin consumption and the broader economy. While diminishing prospects of a near-term rate hike have kept shorter-term yields stable, those on 30-year and 40-year JGBs soared to all-time highs this week amid calls from politicians for big fiscal spending. The spike in yields comes at a delicate time for the BOJ, which will review next month an existing taper programme running through March, and come up with a plan for the next fiscal year and beyond. Worries also linger over the U.S. fiscal outlook and demand for government debt. The U.S. House of Representatives narrowly passed President Donald Trump's tax bill, adding to worries about the country's debt load. In the joint conference with Ueda, Japanese Finance Minister Katsunobu Kato said there were comments at the G7 meetings pointing to the need to ensure fiscal health. The G7 communique adopted on Thursday cited high public debt and increasing fiscal pressures, saying that raising long-term growth potential is essential to manage risks to fiscal sustainability. On foreign exchange issues, Kato said there were no discussions beyond what was agreed in the communique, which said the G7 reaffirmed existing commitments that exchange rates should be set by markets, and that excessive volatility in currency moves would hurt economic stability. https://www.reuters.com/markets/asia/boj-closely-watch-bond-market-situation-its-governor-says-2025-05-22/