This afternoon in metals news, the U.S. renewable energy industry has reason to worry about the Republican tax proposal, union members at the Quebrada Blanca copper mine in Chile move closer to a strike, and precious metal prices fall.
Renewables Market Pushes Against BEAT Tax
While the Republicans’ latest attempt at an overhaul of the U.S. tax system is receiving the usual praise and criticism, the renewable energy sector is concerned – and understandably so. As Dino Grandoni explains in the Washington Post, the bill may inadvertently end investment in wind and solar energy.
Currently, many companies have large multinational corporations finance wind or solar energy projects, and in return, give the latter the renewable energy credit that the government provides. But these credits may be cancelled out as part of the base erosion anti-abuse (BEAT) tax, which is meant to discourage multinationals from moving profits abroad.
According to the American Wind Energy Association’s Peter L. Kelley, the BEAT tax – if it is not amended to exempt renewables credits – could put an end to more than half of the country’s wind projects.
Strike Brewing at Quebrada Blanca Mine
A quarter of the workforce at the Quebrada Blanca copper mine in Chile moved closer to a strike, as the 106-member union rejected Canadian miner Teck Resources’ contract offer on Wednesday, Reuters reports. Ninety-six percent of the union voted to reject the offer and strike, said the president of the union.
As of 2017, Quebrada Blanca has produced 17,300 tons of copper.
Gold, Silver Prices Fall
Gold and silver prices are both down as of Thursday morning, with gold dipping to a one-week low and silver falling to an eight-week low.
At $16.30 per ounce, the silver price is at its lowest since Oct. 6, falling alongside other industrial metals. Gold has dropped 1%, as the U.S. dollar and stock indexes remain steady.