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U.S. needs more tungsten. China is a major supplier of the critical metal

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Pictured here is a stone with tungsten ore inside a mine in Germany run by Saxony Minerals and Exploration.

Picture Alliance | Picture Alliance | Getty Images

BEIJING — China dominates the supply chain for many of the world’s critical minerals, but so far it’s held off on sweeping restrictions on at least one: tungsten.

The metal is nearly as hard as diamond and has a high energy density. That’s made tungsten an important material in weapons, autos, electric car batteries, semiconductors and industrial cutting machines. Chipmakers such as Taiwan Semiconductor Manufacturing Company and Nvidia both use the metal.

“I don’t expect any saber-rattling over tungsten,” said Lewis Black, CEO of Canada-based Almonty Industries, which is spending at least $75 million to reopen a tungsten mine in South Korea later this year.

“If you get too belligerent about diversification, [it becomes a situation that’s] biting the hand that feeds you,” he said, adding that “tungsten has always been a diplomatic metal.”

While the Biden administration raised tariffs on imports of tungsten in May, China this past weekend did not include the metal in new regulations for boosting its oversight of domestic rare earths production.

But China might not be too concerned, because the Chinese government ignored the new tariffs… They completely ignored it because the Chinese don’t want tensions to rise.

Lewis Black

CEO of Almonty

“The tariffs were more of a warning shot, as Biden only put tariffs on three of the 25 strategic metals China exports,” Black said.

“But China might not be too concerned, because the Chinese government ignored the new tariffs, unlike in the past when they restricted some exports of rare earths. They completely ignored it because the Chinese don’t want tensions to rise.”

Asked last month if China would retaliate to the latest U.S. tariffs on tungsten, China’s Ministry of Commerce spokesperson He Yadong didn’t announce countermeasures. Instead, he called on the U.S. to remove the additional duties.

Commodity price reporting and analytics company Fastmarkets pointed out earlier this year that China has reduced national production quotas for its tungsten mines due to environmental restrictions.

Diversifying away from China

Still, Black expects his company to benefit from growing efforts to diversify away from China. Almonty claims the forthcoming mine in South Korea has the potential to produce 50% of the world’s ex-China tungsten supply.

Demand for non-Chinese tungsten is already on the rise.

“We see in the U.S., in Europe, they ask their suppliers for a China-free supply chain,” said Michael Dornhofer, founder of metals consulting firm Independent Supply Business Partner.

Commerce Secretary Gina Raimondo on competition with China: They cannot have our AI chips

The U.S. REEShore Act — or Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022 — prohibits the use of Chinese tungsten in military equipment starting in 2026, while the European Commission last year extended tariffs on imported Chinese tungsten carbide for another five years, Almonty Industries pointed out in a report.

The House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party last month announced a new working group on the U.S. critical minerals policy.

Soaring tungsten prices

Expectations for higher demand and limited supplies of tungsten have pushed prices to multi-year highs, although they have tapered off in the last several weeks.

Dornhofer said in an interview in late May that he was also seeing Chinese buyers increasing their tungsten purchases.

“Since the beginning of this year, they are not only asking for Western concentrate, but they are buying significant volumes, paying even more than Western companies are willing to pay,” he said. “Definitely [going to be] a game changer.”

How China's control of rare earth minerals threatens the U.S.

Back in January, U.S.-based research firm Macro Ops said: “We’re approaching an inflection point in tungsten supply. The US will quickly run out of stockpiled tungsten and flip from net seller to buyer over the next 12-18 months.”

The U.S. Bureau of Industry and Security at the Department of Commerce did not immediately respond to a CNBC request for comment on this story.

Brandon Beylo, head of investment research at Macro Ops, told CNBC in an email there are only six companies in the U.S. with capacity to produce tungsten. He added that the U.S. hasn’t produced tungsten domestically since 2015, meaning future U.S. supply must come from overseas.

He said the firm doesn’t own tungsten-related stocks, but that he’s personally looking for ways to access the physical commodity. There are no futures for trading tungsten.

Other tungsten players going to South Korea

China dominates over 80% of the tungsten supply chain, although local production costs are rising as the mines age, according to Argus, noting Chinese imports of the metal from North Korea, central Africa and Myanmar.

“This presents an opportunity for projects outside China,” Mark Seddon, principal, consulting and analytics at Argus, said in a June 28 webinar.

Other non-Chinese companies in the tungsten supply chain are going to South Korea.

In February, IMC Endmill, an affiliate of Warren Buffett-owned IMC Group, signed an agreement with the Daegu city government for a 130 billion Korean won ($93.6 million) investment in a tungsten powder manufacturing facility, according to a local news report.

IMC Group did not immediately respond to CNBC’s request for comment.

China won't be able to supply the world with rare earth forever, says mineral exploration firm

China’s dominance in global critical minerals supply chains has been built up over several decades.

Dornhofer pointed out that efforts to produce tungsten outside of China have languished for years, including plans for a mine in New Brunswick, Canada, that would have significantly increased global tungsten capacity.

All these projects have been on the table since 20 years ago, he said. “When people tell you in two years, three years they will be in operation, it’s a question of whether you believe them. On the other [hand], the tungsten is in the ground. It’s still there.”

Almonty claims to be the biggest producer of tungsten outside China and right now, primarily operates in Portugal and Spain. The forthcoming mine in Sangdong, South Korea, closed in the 1990s.

After the mine reopens later this year, Black expects his company will account for only 7% or 8% of global tungsten supply.

“We’re not crowding out any Chinese,” he said. “We don’t intend to.”

“Now if we’re going to produce 30% to 40%, I’m taking a battle with China, which wouldn’t be a smart thing to do.”



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Global Blue Releases the Monthly Tax Free Shopping Business Update for June 2024 By Investing.com

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  • Fresh data from Global Blue reveals that the global dynamic recovery for Tax Free Shopping accelerated across Continental Europe and Asia Pacific.
  • Globally, issued Sales in Store like-for-like recovery reached 168%1 in June 2024 compared to the same period in 2019, vs. 163%1 in April/May 2024 and 140%1 in Q1 2024.

SIGNY, Switzerland–(BUSINESS WIRE)–An accelerating worldwide recovery, compared to 2019 levels

Globally, June 2024 recovery is ahead of April/May 2024 recovery, reaching 168%1 vs. 163%1 in April/May and 140%1 in Q1. This is driven by a solid momentum across destinations.

In Continental Europe, June 2024 recovery has slightly accelerated compared to April/May 2024, reaching 147%1 in June vs. 141%1 in April/May and 128%1 in Q1, propelled by strong recoveries in France (164%1), Spain (160%1) and Italy (163%1). In terms of origin markets, GCC shopper recovery significantly influenced the positive impact of the recovery in June, reaching 335%1 vs. 302%1 in April/May. This seasonal boost is linked to the shift in the Eid Al Adha calendar2. US shopper recovery also remains strong, reaching 317%1 in June vs. 308%1 in April/May.

In Asia Pacific, the recovery rate remained strong at 236%1 in June vs. 223%1 in April/May. Regarding origin markets, travelers from Hong Kong and Taiwan continue to lead the recovery, reaching 764%1 in June vs. 601%1 in April/May. North East Asia travelers follow closely, with a recovery rate of 386%1 in June vs. 352%1 in April/May.

For Mainland Chinese shoppers, the worldwide issued Sales in Store like-for-like recovery reached 122%1 in June, in line with April/May and 101%1 in Q1 ˜24. Within Continental Europe, Mainland Chinese shopper recovery reached 58%1 in June vs. 63%1 in April/May. In Asia Pacific, Mainland Chinese shopper recovery continues to accelerate, reaching 214%1 in June and 190%1 in April/May.

A strong year-on-year performance for international shopping

When analyzing the year-on-year variation in Tax Free Shopping growth, the worldwide issued Sales in Store like-for-like year-on-year performance reached +32%3 in June 2024 vs. +47%3 in April/May and +40%3 in Q1.

In Continental Europe, the issued Sales in Store growth rate grew by +14%3 in June 2024 vs. last year, influenced by a positive dynamic across nationalities. Regarding origin markets, the positive momentum for issued Sales in Store growth is visible across all nationalities, with GCC shoppers leading the way, with the US at +39%3 and Mainland Chinese at a +13%3 growth rate in June 2024.

In Asia Pacific, the issued Sales in Store growth rate continues to remain high, reaching +92%3 in June 2024 vs. last year. All nationalities contributed positively, with Mainland Chinese leading the way at +161%3 in June 2024 vs. 2023, North East shoppers at +122%3 and Hong Kong and Taiwan at +66%3.

APPENDIX

Worldwide recovery rate (versus 2019) rate

Issued SIS L/L recovery1

(in % of 2019)

% Issued SIS 2019

 June

2024

 May

2024

 April

2024

March

2024

 CY Q1

2024

CY Q4

2023

France

22%

164%

170%

158%

160%

165%

140%

Italy

24%

163%

164%

145%

135%

123%

123%

Spain

14%

160%

169%

166%

152%

151%

133%

Germany

13%

90%

73%

73%

69%

65%

74%

Other countries

27%

137%

127%

129%

121%

126%

111%

Total Continental Europe

100%

147%

145%

137%

130%

128%

118%

Japan

54%

359%

360%

262%

235%

232%

225%

Singapore

42%

85%

103%

81%

111%

92%

75%

South Korea

4%

170%

164%

140%

127%

125%

111%

Total Asia Pacific

100%

236%

250%

192%

181%

166%

150%

Total worldwide

100%

168%

172%

153%

145%

140%

127%

Worldwide Year-on-Year Growth Rate (2024 vs. 2023)

Issued SIS L/L

Year-on-Year

Growth3

% Issued SIS 2023

 June

2024

 May

2024

 April

2024

March

2024

February

2024

 CY

Q1 2024

France

26%

+5%

+14%

+13%

+3%

+21%

+11%

Italy

25%

+15%

+29%

+30%

+20%

+44%

+29%

Spain

15%

+29%

+33%

+38%

+18%

+52%

+32%

Germany

8%

-1%

-7%

+15%

-10%

+9%

+6%

Other countries

26%

+16%

+21%

+24%

+9%

+30%

+16%

Total Continental Europe

100%

+14%

+19%

+25%

+9%

+32%

+19%

Japan

65%

+135%

+222%

+167%

+146%

+170%

+137%

Singapore

27%

-2%

+2%

-4%

+24%

+36%

25%

South Korea

8%

+61%

+58%

+63%

+96%

+138%

110%

Total Asia Pacific

100%

+92%

+134%

+103%

+102%

+120%

97%

Total worldwide

100%

+32%

+47%

+46%

+33%

57%

40%

GLOSSARY

– Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
– South East Asia includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore
– North East Asia includes: Japan, South Korea

ABOUT GLOBAL BLUE

Global Blue is the business partner for the shopping journey, providing technology and services to enhance the experience and drive performance.

With over 40 years of expertise, today we connect thousands of retailers, acquirers, and hotels with nearly 80 million consumers across 53 countries, in three industries: Tax Free Shopping, Payments and Post-Purchase solutions.

With over 2,000 employees, Global Blue generated €28bn Sales in Store and €422M revenue in FY 2023/24. Global Blue is listed on the New York Stock Exchange.

For more information, please visit www.globalblue.com

Global Blue Monthly Intelligence Briefing, June 2024, Source: Global Blue

1 Recovery rate is equal to 2024 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.: at constant merchant scope and exchange rates).
2 Eid Al Adha took place from June 15, 2024, to June 20, 2024, while it took place from August 10, 2019 to August 14, 2019.
3 Growth rate variation year-on-year (2024 vs. the same period in 2023)

MEDIA
Virginie Alem “ SVP Marketing & Communications
Mail: valem@globalblue.com

INVESTOR RELATIONS
Frances Gibbons “ Head of Investor Relations
Mob: +44 (0)7815 034 212
Mail: fgibbons@globalblue.com

Source: Global Blue





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Keir Starmer hails historic Labour victory as Conservatives sink to worst-ever result

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Sir Keir Starmer has declared a historic Labour victory in Britain’s general election, urging the country to embrace “the sunlight of hope” as he headed for a huge House of Commons majority of about 180 seats.

Outgoing prime minister Rishi Sunak conceded his Conservative party had suffered a devastating defeat, as it sank to its worst-ever result. The Tory vote was decimated by Nigel Farage’s populist Reform UK.

Labour is set to win 413 House of Commons seats out of 650, according to a Financial Times projection that takes into account the 13 seats yet to declare as of 7.25am. The Tories were projected to slump to 122.

But Starmer will formally become Britain’s new prime minister knowing that Labour’s public support is shallow.

The party was set to win power with 34 per cent of the national vote, the lowest-ever winning share and only 10 percentage points higher than the Conservatives.

For most of the election campaign, polls had put Labour 20 points ahead.

“We can look forward again,” Starmer told party activists at London’s Tate Modern at 5am. “Walk into the morning — the sunlight of hope, pale at first, but getting stronger through the day.”

Labour last won an election under Sir Tony Blair in 2005.

In a highly symbolic moment, former prime minister Liz Truss was among the big Tory names to lose their seats. Her 49-day premiership, and the economic havoc it spawned, contributed to the Conservative meltdown.

The party’s performance is a personal triumph for the former chief prosecutor, who became Labour leader in 2020 after the party’s worst postwar election defeat. His victory is similar in scale to Blair’s 1997 Labour landslide.

But the party’s success was delivered on a vote share that was a much smaller share than the 40 per cent secured by leftwing Labour leader Jeremy Corbyn in his 2017 general election defeat.

Labour won scores of seats because of the rise of Reform UK, which split the rightwing vote, punishing the Conservatives under the UK’s first past the post electoral system.

“This looks more like an election the Conservatives have lost than one Labour have won,” pollster Sir John Curtice told the BBC.

Speaking at his count in Clacton, Reform’s leader Nigel Farage said his party would come second in swaths of seats as well as securing a “bridgehead” in parliament, adding: “This is the start of something that is going to stun all of you.”

Turnout was on course to be about 60 per cent, close to a record low, suggesting general public dissatisfaction with mainstream politics.

Starmer admitted that he faced an immediate task of reconnecting mainstream politics to voters. “The fight for trust is the battle that defines our age,” he said.

As of 7am, Labour had secured 34 per cent of the vote, Conservatives 24 per cent, Reform 14 per cent and Liberal Democrats 12 per cent.

By that time Labour had won 409 seats, the Conservatives 117, the Lib Dems 70 and Reform four.

The centrist Lib Dems’ tally smashed the party’s modern-era 62-seat record in 2005, as it made big gains in the Tory “blue wall” of well-heeled seats in the south of England.

The Scottish National party was behind Labour in Scotland with just eight seats, delivering a hammer blow to the party’s dream of securing independence.

The results confirmed the overwhelming sentiment reported by candidates from all parties that Britain wanted “change”. Outgoing chancellor Jeremy Hunt, who narrowly held his own Surrey seat, called it a “crushing defeat”.

But Hunt added that Starmer and shadow chancellor Rachel Reeves were “decent people and committed public servants who have changed the Labour party for the better”. He urged them to reform the NHS, adding Labour might be better placed than the Tories to achieve that goal.

Grant Shapps, defence secretary; Penny Mordaunt, leader of the House of Commons; Gillian Keegan, education secretary; Sir Jacob Rees-Mogg, former cabinet minister; and Alex Chalk, justice secretary, were among the high-profile Tory casualties on a night of Tory desolation.

Corbyn held his Islington North seat, standing as an independent, while George Galloway, the leftwing pro-Palestinian MP for Rochdale, lost his seat to Labour.

But Labour lost two seats — including one held by shadow cabinet member Jonathan Ashworth — to pro-Palestinian independent candidates, an indication of how Starmer’s position on the Israel-Hamas war has hurt his party among many Muslim voters.

The Green party also won all its four target seats in the general election, quadrupling the number of MPs it will send to Westminster and bringing its total in line with Reform UK.

Under 14 years of Conservative rule, five prime ministers presided over economic austerity, Brexit, a pandemic and an energy price shock, while frequently engaging in bouts of civil war. “We forgot a fundamental rule of politics,” Shapps said. “People don’t vote for divided parties.”

Starmer becomes only the seventh Labour prime minister in the party’s history, and his victory is the first since 2005 for the centre-left party. Labour last ousted the Tories from power in 1997.

He will move into 10 Downing Street on Friday and immediately form his cabinet, with an instruction to ministers to quickly deliver policies to jolt Britain out of its low-growth torpor.

An exit poll forecasting the Labour landslide indicated that Starmer’s avowedly pro-business agenda had paid off, as Labour bucked international political trends. Far-right parties have performed strongly in recent European and French elections, while Donald Trump is leading in polls for the US presidential race.

Chancellor-in-waiting Reeves has said she hopes investors will now see the UK as a “safe haven”.

Starmer has promised to work with business to stimulate growth, with an agenda that includes planning reform and state investment in green technology. Labour will also pursue a traditional agenda of reforms to worker rights.

For Sunak, was a personal disaster. He chose to hold an early election — against the advice of his campaign chief Isaac Levido — and ran an error-strewn six-week attempt to turn around his party’s fortunes.

The party’s projected total of 122 seats is lower than the party’s worst-ever result of 156 in 1906. Starmer’s expected seat haul is close to the 418 seats won by Tony Blair in his 1997 landslide victory.

Defeats for Tory cabinet members including Shapps and Mordaunt has reduced the cast list of potential contenders for the party leadership if, as expected, Sunak stands down.



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Democratic donors say they won’t finance party until he drops out

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U.S. President Joe Biden walks to deliver remarks after the U.S. Supreme Court ruled on former U.S. President and Republican presidential candidate Donald Trump’s bid for immunity from federal prosecution for 2020 election subversion, at the White House in Washington, U.S., July 1, 2024. 

Elizabeth Frantz | Reuters

President Joe Biden is facing an uprising from some his own party’s wealthy donors, including an heiress to the Disney family fortune, who say they will no longer fund the Democratic Party until Biden steps down following his disastrous debate performance.

Abigail Disney, the granddaughter to Roy O. Disney, who cofounded The Walt Disney Company, told CNBC on Thursday that she plans to withhold donations to the party she has funded for years until Biden drops out. The president has said he has no plans to withdraw from the race, despite calls for him to do so.

“I intend to stop any contributions to the party unless and until they replace Biden at the top of the ticket.  This is realism, not disrespect. Biden is a good man and has served his country admirably, but the stakes are far too high,” Abigail Disney said in a lengthy statement to CNBC. “If Biden does not step down the Democrats will lose. Of that I am absolutely certain. The consequences for the loss will be genuinely dire.”

The Democratic Party at large has been in a state of panic since Biden struggled to perform in the debate against former President Donald Trump last week. Rep. Lloyd Doggett, D-Texas, called on Biden to drop out of the race, suggesting the debate performance proved to voters that the president is incapable of taking on Trump and unable to overcome his distance in the polls.

A New York Times/Sienna College poll taken after the debate showed Biden behind Trump by 6 percentage points among likely voters.

Representatives for the Biden campaign did not return requests for comment.

Abigail Disney has been a longtime supporter of Democrats. She gave $50,000 to the Jane Fonda Climate political action committee in April, according to a Federal Election Commission filing. The PAC has given $35,000 to Democrats running for congressional seats, according to data from OpenSecrets.

Disney gave $150,000 in 2014 to Planned Parenthood Votes, a PAC affiliated with the health care nonprofit, according to OpenSecrets. That PAC this election cycle has spent over $400,000 supporting Democrats, including $26,000 for Biden.

Disney pointed to Vice President Kamala Harris as a solid alternative to Biden, arguing she’d be able to defeat Trump.

“We have an excellent Vice President.  If Democrats would tolerate any of her perceived shortcomings even one tenth as much as they have tolerated Biden’s (and let’s not kid ourselves about where race and gender figure in that inequity) and if Democrats can find a way to stop quibbling and rally around her, we can win this election by a lot,” Disney said.

And she’s not the only one pausing gifts until Biden steps down. Gideon Stein, the president of the Moriah Fund, said he’s decided to pause planned donations of $3.5 million, earmarked for nonprofits and political organizations aligned with the presidential race.

“Joe Biden has been a very effective president, but unless he steps aside my family and I are pausing on more than $3 million in planned donations to nonprofits and political organizations aligned with the presidential race, with the exception of some down ballot work,” Stein said. “Virtually every major donor I’ve talked to believes that we need a new candidate in order to defeat Donald Trump.”

Karla Jurvetson, a philanthropist and major Democratic donor, hinted as recently as Tuesday in a private donor call that she agrees with the sentiment on pausing donations until Biden steps down and could end up making such move, according to a person familiar with her remarks. The person was granted anonymity in order to speak freely about a private conversation.

A spokesman for Jurvetson did not return repeated requests for comment.

Jurvetson is among the top 50 donors this cycle across the country, donating over $5 million to Democrats, according to OpenSecrets. She’s given over $200,000 to the Biden Victory Fund this cycle, according to FEC records.

Jurvetson gave over $30 million to Democrats in 2020, according to the data.



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