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ioneer (ASX:INR) considers impact of new U.S. administration

Mining
ASX:INR      MCAP $453.4M
10 February 2021 12:50 (AEST)
ioneer (ASX:INR) - Managing Director, Bernard Rowe

Source: Finance News Network

Lithium-boron supplier ioneer (INR) is considering how the United States’ new president and administration may impact the company.

Since his inauguration in January, new U.S. President Joe Biden has been quick to start overturning his predecessor’s policies on COVID-19, economic relief, climate change, immigration and racial relations. 

His stance on climate change has been made clear by executive actions he has already signed, encouraging zero emissions technologies. Comments from his Secretary of Energy and Secretary of Treasury have emphasised the Biden administration’s prioritisation of a low-carbon future, which ioneer is happy to hear.

The company believes this will accelerate the U.S.’s transition to electric vehicles and development of a domestic lithium-ion battery materials supply chain.

ioneer’s Managing Director, Bernard Rowe, believes that the Biden administration will be a catalyst for both the company and US vehicle electrification.

“Moreover, ioneer anticipates the new administration will give strong support for domestic projects, such as Rhyolite Ridge, which will supply the critical minerals necessary to execute on the administration’s emissions reduction and climate target programs,” he said.

“We continue to do everything in our power to advance our corporate and engineering activities for this important project, ensuring we are construction-ready once we receive our permits and helping the administration meet the climate goals it has set out,” he added.

Despite these positive predictions, ioneer has also acknowledged that the transition of power may cause some inconvenient delays for the company. In particular, it may delay the permitting of ioneer’s Rhyolite Ridge Lithium-Boron Project in Nevada.

During the national transition period from one administration to the next, there will be personnel changes throughout the U.S. Federal Government. These will include the Department of Interior and the Bureau of Land Management, the authorities responsible for approving the permitting of Rhyolite Ridge. 

No permit assessments or publication of permitting decisions are expected until the new personnel are in place. ioneer believes that this will occur sometime within the next 60 days, allowing the company to commence construction at Rhyolite Ridge in 2021’s fourth quarter.

ioneer is down 4.44 per cent, trading at 43 cents per share at 12:24 pm AEDT.

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