China’s PBOC pumped almost 300B yuan ($42B) into the banking system via 14-day reverse repo agreements to flood the banking system with cash ahead of the Golden Week public holiday. The 14-day operation (last used in January) came alongside 241B yuan injected from 7-day reverse repos (regular liquidity tool).
Separately, the PBOC is using the Shanghai Gold Exchange to lobby friendly central banks to buy and store gold reserves within China’s borders. The move would enhance Beijing’s role in a global financial system less dependent on the U.S. dollar and Western financial centers such as the U.S., U.K. and Switzerland.
Mali’s Council of Minsters approved seven exploitation and exploration agreements granting the state more revenue from mining projects (in the latest push by the military to extract more income from the sector). Affected mines include B2’s Fekola, Allied’s Sadiola, Resolute’s Syama and Ganfeng’s Bougouni. Mali’s 2023 mining code revamp expanded minimums on local mine ownership from 20% to at least 35% and increased royalties from 6.5% to 10%.
In a sign of the Trump administration’s shifting focus from critical minerals for the energy transition towards those needed for national security/military use, the Energy Department is re-evaluating a record $2.3 billion Biden-era loan to Lithium Americas Corp. for construction of a processing plant adjacent to the company’s Thacker Pass mine on one of the largest U.S. lithium deposits. The agency is warning the project could fail to draw sufficient demand in the face of cheaper Chinese lithium and is pushing General Motors (holds 38% interest in the mine) to sign a binding offtake agreement for the mine’s production.
In a very busy week for scheduled Fed speeches, Chair Powell speaks today on the Economic Outlook in Warwick, Rhode Island at 12:35 pm.
Spot gold +1.1% and spot silver +0.8%
