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Sunday, April 19, 2026

US backs a South Africa project to extract rare earths despite a diplomatic clash

Two enormous sandlike dunes at an old chemical processing plant in South Africa are at the center of an exploratory U.S.-backed project to extract highly sought-after rare earth elements from industrial mining waste.

The Phalaborwa Rare Earths Project has U.S. support through a $50 million equity investment by the government's International Development Finance Corporation and is part of accelerated U.S. efforts to reduce reliance on economic rival China for the minerals crucial for making electronic devices, robotics, defense systems, electric vehicles and other high-tech products.

Countries have identified dozens of minerals, including copper, cobalt, lithium and nickel, as critical because they are essential for new technologies. The 17 rare earth elements are a subset of them.

President Donald Trump has made expanding U.S. access to critical minerals, including rare earth elements, a central policy to counter China. The Trump administration said this year it will deploy nearly $12 billion to create its own strategic reserve.

The DFC was created during the first Trump administration and committed its investment in the Phalaborwa project in 2023 under former U.S. President Joe Biden.

The current Trump administration has moved forward with the project despite a major diplomatic rift with South Africa, which began when Trump returned to office and issued an executive order last February to halt all financial assistance to the country.

But the administration has shown that certain economic concerns come first. The DFC has promoted its involvement in the Phalaborwa project as part of a push to unlock Africa's mineral potential “while advancing U.S. strategic interests.”

The Phalaborwa project is being developed by Rainbow Rare Earths. The DFC's investment is through partner TechMet, a company that says it is focused on securing critical mineral supplies for the West. South Africa's government does not have a direct stake in the project.

Rainbow Rare Earths CEO George Bennett told The Associated Press they hope to supply predominantly the U.S., saying its interest in the project was largely related to defense systems.

The company says it aims to supply the rare earth elements neodymium, praseodymium, dysprosium, terbium and others from its South African project. They are used in high-performance magnets in wind turbines, electric vehicles, defense and emerging applications, including robotics.

The Phalaborwa project aims to start extracting rare earths from the two huge dunes in 2028. The dunes are 35 million tons of phosphogypsum, a byproduct of mining waste and the processing of phosphate rock for acid and fertilizer production.

The project is expected to operate for 16 years, Rainbow Rare Earths said. The $50 million injection from the DFC will be used only once Rainbow Rare Earths starts construction of its processing factory in Phalaborwa, anticipated in early 2027.

Rare earths are relatively common but usually occur at low concentrations and are difficult to separate, making their mining costly.

https://abcnews.com/US/wireStory/us-backs-south-africa-project-extract-rare-earths-132179303

Too early to short stocks as flows overpower macro risks – Nomura

Equity markets may remain difficult to short in the near term despite rising macro risks, as positioning and flows continue to support prices, according to Nomura.

In a recent note, strategist Charlie McElligott said investors are still rebuilding exposure after being heavily de-risked during earlier volatility, creating a backdrop where buying pressure can persist even as fundamental concerns grow. That dynamic has been reinforced by the unwinding of downside hedges, with put positions losing value and generating positive delta that has helped fuel the rally.

Short covering has also played a key role, with high short-interest stocks rising sharply in recent sessions as traders move to re-establish positioning. At the same time, options activity suggests investors are increasingly chasing upside, particularly in megacap technology names.

McElligott argues that this flow-driven support makes it premature to bet against equities (SPY) (IVV) (VOO) (DIA) (QQQ). He said it would take either a renewed bond-market selloff or a more extreme buildup in bullish positioning to create conditions for a sustained downturn.

That said, macro risks are building beneath the surface. McElligott highlighted the potential for an energy-driven inflation shock, which could trigger tighter central bank policy and pressure global growth.

For now, however, those risks are being overshadowed by positioning dynamics, leaving markets supported even as uncertainty remains elevated.

https://www.msn.com/en-us/money/markets/too-early-to-short-stocks-as-flows-overpower-macro-risks-nomura/ar-AA21fb5E

Iran halts petrochemical exports to supply domestic market

Iran has halted exports of all petrochemical products until further notice to prevent shortages of raw materials and stabilize the domestic market, state-linked media reported.

A letter issued by a senior official at the National Petrochemical Company instructed producers to stop exports and redirect supply to domestic industries.

The directive said the move aims to support downstream industries and consumers following damage caused by recent attacks and to ensure adequate supply in the domestic market, the report said.

Attacks, curbs hit sector

Domestic prices for petrochemical and related products have been held at pre-conflict levels despite rising global prices, officials said, adding the measures would remain in place to support local industry and consumers.

Companies were also told to return export cargoes that have not yet cleared customs, with associated costs to be reported for possible adjustments to domestic pricing.

ey petrochemical hubs in Asaluyeh and Mahshahr have been hit in recent weeks, including strikes on utilities supplying feedstock to plants, disrupting production.

The US military has also begun blocking shipping traffic in and out of Iran’s ports this week, a move aimed at reducing Iran’s export revenues as Tehran and Washington consider a second round of talks.

Economic strain deepens

The measures come as Iran faces mounting economic pressure, with reports sent by citizens to Iran Internationaldescribing factory closures and layoffs in industrial hubs due to shortages of raw materials and weak demand.

Residents said businesses have struggled with disrupted supply chains and an ongoing internet shutdown, which has further strained operations and added to rising prices.

https://www.iranintl.com/en/202604167873

Adviser Velayati says any move against Iran will bring ‘chain reaction’

Ali Akbar Velayati, an adviser to the former Supreme Leader of the Islamic Republic, said in a post on X that the era of imposing security “from across the oceans” was over and warned that “any mischief will trigger a chain reaction.”

He said security in Hormuz and Malacca was now guaranteed “under the shadow of our power and that of our strategic partners,” and added that security in the Bab al-Mandab was in the hands of “our Ansarallah brothers,” referring to Yemen’s Houthis.

Velayati also took aim at Britain and France, saying that if they were concerned about shipping security, they should “think about the English Channel and the old wound of Gibraltar.” He added: “We appreciate Madrid’s independent and wise positions.”

https://www.iranintl.com/en/liveblog/202604194357

Senior adviser Velayati says any move against Iran will bring ‘chain reaction’

Trump says US envoys due in Pakistan Monday despite Iran ceasefire violation

President Donald Trump said Iran had violated the ceasefire by firing shots in the Strait of Hormuz, adding that Washington was offering a fair deal and that US representatives will arrive in Islamabad on Monday for negotiations with Tehran.
The USS Gerald Ford has left the Mediterranean and is now operating in the Red Sea, CNN reported, citing US officials. The move is meant to strengthen military readiness in case attacks on Iran resume if the ceasefire is not extended.
US President Donald Trump shared videos on Truth Social showing Iranian-Americans and Iranians expressing thanks and support for US action against Iran, before posting another image saying: “The best is yet to come.”
Iran’s parliament speaker Mohammad Bagher Ghalibaf said the Strait of Hormuz remains fully under Iranian control and warned that any further US naval movement, including mine-clearing operations, would be treated as a ceasefire violation and could be met with force.
US Central Command said its naval forces are enforcing a blockade on Iranian ports and that the operation has completely halted Iran’s maritime trade, while the USS Rushmore is conducting blockade operations in the Arabian Sea.
Iran has said it will not send any enriched uranium material to the United States and remains opposed to direct talks for now, while also insisting new rules for the Strait of Hormuz will be part of any negotiations.