A mining investment vehicle backed by the US’ development bank just got a big infusion of funds: Qatar’s sovereign wealth fund is investing USD 180 mn in Dublin-based TechMet, a company that has pumped USD 450 mn into rare earth mineral extraction and production in a bid to counter China’s dominance of the strategic minerals sector.
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The agreement marks a win for the US in its broader push to get Gulf states to throw their financial weight behind the US’ campaign to limit reliance on Chinese-produced minerals. The country of 1.4 bn people accounts for 90% of global rare earth refining, giving it a big advantage in tech manufacturing, and produces 60% of the world’s EV battery-grade lithium — critical for the burgeoning EV sector and the green economy. Last year, China’s decision to impose export restrictions on gallium and germanium — key metals used in chip and EV manufacturing — sent ripples through the US and Europe, stoking fears that China might deploy its mineral dominance to effectively shut down key American and European industries.
Despite US cajoling, Qatar’s recent investment wasn’t always a sure thing. The GCC member maintains warm relations with Beijing, one of the biggest buyers of the country’s natural gas, and has indicated in the past that it doesn’t want its close relationship with the US to come at the expense of its ties with China. Many companies also remain leery of major investments in strategic minerals, given uncertainty about future EV demand and governments’ commitment to hitting their climate goals.
Still, an investment in TechMet allows Qatar to add to its existing portfolio in critical minerals, which currently includes an 8.6% stake in mining and commodity training giant Glencore. As Saudi Arabia and the UAE continue to eye investments in strategic minerals, this first collaboration between the US and a GCC state on minerals might not be the last.
MARKETS THIS MORNING-
Asian markets are mostly in the red in early trading this morning. The Nikkei is looking at the biggest losses, down almost 1.20% as of dispatch. The Kospi (-0.9%) and Hang Seng (-0.8%) are also down this morning.
| EGX30 | 28,628 | +1.5% (YTD: +15.0%) | |
| USD (CBE) | Buy 49.16 | Sell 49.30 | |
| USD (CIB) | Buy 49.15 | Sell 49.25 | |
| Interest rates (CBE) | 27.25% deposit | 28.25% lending | |
| Tadawul | 11,730 | +0.4% (YTD: -2.0%) | |
| ADX | 9,180 | +1.1% (YTD: -4.2%) | |
| DFM | 4,198 | +1.5% (YTD: +3.4%) | |
| S&P 500 | 5,200 | -0.8% (YTD: +9.0%) | |
| FTSE 100 | 8,167 | +1.8% (YTD: +5.6%) | |
| Euro Stoxx 50 | 4,668 | +2.0% (YTD: +3.2%) | |
| Brent crude | USD 78.33 | +2.4% | |
| Natural gas (Nymex) | USD 2.09 | -1.0% | |
| Gold | USD 2,423 | -0.4% | |
| BTC | USD 55,186 | -2.2% (YTD: +30.6%) |
THE CLOSING BELL-
The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 4.0 bn (11.3% above the 90-day average). Local investors were net buyers. The index is up 15.0% YTD.
In the green: Ezz Steel (+11.8%), Elsewedy Electric (+5.1%), and Talaat Moustafa Group (+4.0%).
In the red: Cleopatra Hospitals (-2.5%), Oriental Weavers (-0.8%), and Abu Qir Fertilizers (-0.7%).
