It's been a very happy start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares. At present, the index is up a healthy 0.81% and back over 7,100 points. But let's talk about the Chalice Mining Ltd (ASX: CHN) share price, which is making those market rises look pitiful by comparison.
Chalice Mining shares are on fire today. This ASX 200 mining stock closed at $1.40 a share last week. But at present, those same shares are going for $1.59 each after hitting a high of $1.65 earlier this morning. That puts the Chalice Mining share price up a whopping 13.98% at present.
So what on earth is going on with this company today that resulted in its valuation swelling by almost a fifth over just a few hours?
Image source: Getty Images
Why has the Chalice Mining share price rocketed 14% today?
Well, we can't know for sure just yet. There hasn't been any fresh official ASX news or announcements out of Chalice today. Or indeed since Thursday last week.
However, we can point to one development that might have ASX investors excited about this company today.
According to reporting in the Australia Financial Review (AFR) today, the Indonesian government has apparently failed to secure access to subsidies from the United States' Inflation Reduction Act (IRA). The IRA is a mammoth program that President Joe Biden passed last year that aims to develop critical mineral infrastructure, as well as facilitate the transition to clean energy.
It allows American producers of strategic minerals, as well as those domiciled in key American allies, access to lucrative subsidies. As a key US ally, many Australian companies, including nickel producer Chalice, have already been allowed some subsidies under this program.
Indonesia was hoping that it too would qualify. But according to the report, Indonesian President Joko Widodo failed to seal the deal at a recent meeting with Biden.
This has reportedly resulted in "Australia's largest nickel producers… breathing a sigh of relief", as they compete with Indonesian producers (many of which are backed by Chinese investment) within our region and on global markets.
So it seems likely that it is this news that is giving investors such an insatiable appetite for Chalice Mining shares this Monday. However, even after these impressive gains, the Chalice Mining share price remains down by more than 74.6% over 2023 thus far.
