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Indonesia reduces the validity of mining quotas by one year
Indonesia announced on Tuesday that it has shortened the validity period of the mining production quotas from three years to one year as of October 3. The government is seeking to control output levels in order to support prices for commodities such as coal and nickel. Mining Minister Bahlil lahadalia had announced the move in July. The ministry stated that quotas issued in 2026 and 2027 will still be valid, but miners must reapply to receive quotas. It added that RKAB proposals - documents used by companies to request the amount of gold they can mine in a given period - should be submitted every year between October 1st and November 15th. The coal miners association APBI expressed its hope that the short time remaining for RKAB approval and submission for 2026 will not affect miners operations. Gita Mahyarani, executive director of APBI, said: "This is closely linked to the certainty in business sustainability from investment to contract fulfilment." According to the new rules miners must also provide proof of their ability to pay for the rehabilitating the land after mining. State media Antara reported that the ministry suspended 190 mining licenses last month after companies failed their obligations to repair mine-damaged land and comply with production quotas. (Reporting and editing by John Mair, Edwina Gibbs and Bernadette Cristina Munthe)
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Gold reaches record high due to broader uncertainty and rate-cut bets
The gold price reached another record on Tuesday, driven by a strong investment demand in the face of broader geopolitical uncertainty and economic instability. Expectations for further U.S. rate cuts also helped. Gold spot held steady at $3.956.02 an ounce as of 0745 GMT after reaching a high of $3.977.19 earlier. U.S. Gold futures for delivery in December were unchanged at $3,972.20. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that strong ETF demand, driven by FOMO and eroding confidence in traditional safe-havens, remains key. The White House backed off President Donald Trump on Monday from his claim that the shutdown was causing layoffs in the government, but warned that there could be job losses as the shutdown enters its seventh day. The shutdown has delayed the release of important economic indicators. This forces investors to rely upon secondary data, which is not government-issued, to determine the timing and magnitude of Fed rate reductions. The markets continue to price a 25 basis point cut for this month's meeting, and a reduction of a similar size in December. Gold that does not yield is a good investment in low-interest rate environments and economic uncertainty. The gold price has increased by 51% this year, thanks to strong central bank purchases, increased demand for exchange-traded products backed by gold, and a weaker US dollar. Retail investors are also becoming more interested in the metal, as they seek to protect themselves from rising geopolitical and trade tensions. "I see gold rising to $4,300/oz in the next six months." Michael Langford is chief investment officer of Scorpion Minerals. He said that the USD will continue to depreciate, and this is good for the gold price. Goldman Sachs raised its December 2026 gold price forecast to $4.900 per ounce, up from $4.300. Data from the People's Bank of China revealed that China's central banks added gold to their reserves for the 11th consecutive month in September. On Tuesday, currency and bond market volatility in Japan and France continued to grip the markets. Other than that, silver spot was down by 0.9% to $48.11 an ounce. Platinum fell 1%, while palladium remained at $1,317.50. (Reporting from Anmol Choubey, Bengaluru. Editing by Kate Mayberry.)
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The dollar is under pressure as copper prices rise due to supply problems
The copper price rose on Tuesday due to concerns about supply from the top producers Chile and Indonesia. However, a stronger U.S. Dollar kept gains in check. The London Metal Exchange reported that the price of three-month copper rose by 0.3%, to $10.679.50 per ton at 0717 GMT. The metal reached its highest level since May 2024 on Monday before easing. Freeport Miner said that five workers who had been missing following a mudflow disaster at the Grasberg Copper and Gold Mine in Indonesia, last month, have now been found dead. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that the tragic incident, coupled with tightness in other major copper producing sites, had pushed prices down. The traders are confident that the near-term supply constraint could offset this. Grasberg, the second largest copper mine in the world, accounts for 3% global concentrate production. Supply concerns will likely persist in this year, given the operational suspensions at Grasberg and disruptions at Kamoa Kakula mine in the Democratic Republic of Congo, as well as El Teniente in Chile. Analysts have estimated that disruptions in the copper industry could lead to a loss of 591,00 tons of output between September 2025 through 2026. This has led Goldman Sachs Citi and Bank of America, among others, to increase their price predictions. Indonesia's Mining Ministry issued a new regulation on Tuesday that reduces the validity period of mining production quotas from three to one year. The move is intended to give the government greater control over the output levels, and to support commodity prices. After an accident on July 31, the copper production in Chile fell by 9.9% compared to last year. The dollar index continued to gain against its competitors, despite the gains being capped. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies. Other London metals include aluminium, which fell by 0.4% to $2.714 per ton. Nickel was down 0.2% at $15,450. Lead remained flat at $2.004.5. Tin lost 0.3%, to $36,615. Zinc dropped 0.2%, to $3,001.50. Golden Week, which runs from 1-8 October, is a time when Chinese markets will be closed. Click here to see the latest news in metals, and other topics. (Reporting and editing by Sumana Naandy and Subhranshu Shu in Bengaluru).
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Schools in boats are keeping learning afloat on the floodplains of Bangladesh
Solar-powered "floating school" in flood-prone areas of Bangladesh ensures children don't miss class when rising water cuts off roads and villages. Safikul, a 10-year-old boy, is one of the victims. He waits each morning on the edge his flooded village of Bhangura in western Bangladesh for the solar powered classroom that sails straight to his door. His home is located in Chalan Beel, an expansive 26 square kilometres (10 sq miles) of wetland. Seasonal floods can often submerge villages and cut off roads. Education floats for Islam, and hundreds of children. The initiative was launched by architect Mohammed Rezwan in 2002 using $500 from his scholarship fund. It has now grown to a national model operated by the non profit Shidhulai Swanirvar Sangstha. More than 100 boats now serve as libraries, schools, and clinics. This project has educated more than 22,000 students, and it won a UNESCO Confucius Prize for Literacy for its work this year. Around two dozen boats are used as classrooms in Chalan Beel. They visit riverside villages on six days of the week. The school boats, made from local wood, are equipped with blackboards, bookshelves, and benches. Solar panels provide electricity for computers and lights. Madhusudan Karmaker is a senior manager with SSS. "Right away, we have 2240 pupils enrolled into 26 boat schools," he said. "More than 22,500 students graduated to date, and these boats doubled as shelters during severe flooding." Many other NGOs are using similar models to work on the wetland areas of the country. Three shifts of three hours are held each day. Teachers use narrow waterways for collecting students and teaching Bengali, mathematics, or general knowledge. Sufia, a parent waiting by the riverbank to see her son Islam return, said: "We never got the chance to learn." "But this boat allows my children to dream of a brighter future." Sakhina Khatun, a teacher with SSS who has worked for more than a decade, says that similar floating school projects have inspired projects in other countries such as Nigeria, Cambodia and the Philippines. She said, "These schools don't close, not even in floods." "That is what makes them so special." Rezwan, the founder of the organization and a World Fellow from Yale University, stated: "I've not had much in my life, nor do these children." Giving them access to education and healthcare, as well as seeing this replicated across the globe - that's what motivates me. (Reporting from Sam Jahan in Bhangura, and Ruma in Dhaka. Editing by Neil Fullick.)
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Sumitomo Metal predicts that the global nickel market will remain in surplus by 2026
Sumitomo Metal Mining, Japan's largest nickel smelter, said Tuesday that the global nickel market will remain in surplus for a third straight year next year because of Indonesia's continuing production growth. SMM's half-year outlook for the market projected a surplus of 256,000 metric tonnes in 2026. This is slightly less than 263,000 tons this past year. The production of low grade nickel pig iron in Indonesia is expected to increase 4.1%, to 1.76 millions tons. The nickel pig iron produced in Indonesia is expected to increase by 10.3% between 2025 and 2025. SMM predicts that global nickel demand will grow by 2.4% annually to 3.52 millions tons in 2026. This is due to the steady consumption of stainless steel, and supply is expected to rise by 2.0% to 3,78 million tonnes. Shirou Imai told reporters that the forecast does not assume a significant impact of U.S. Tariffs on Demand, as this has only been a limited effect in 2018. Imai stated that the growth of demand for batteries is expected to remain modest. Nickel is used primarily in stainless steel but also in the lithium-ion battery that powers electric vehicles (EVs). However, demand growth has slowed as lithium-iron-phosphate (LFP) batteries, which are cheaper and contain no nickel or cobalt, gain market share, accounting for two-thirds of EV sales in China in 2023, according to the International Energy Agency. SMM, a supplier of cathode material for Panasonic lithium-ion battery used in Tesla electric vehicles, anticipates that the global demand for nickel for batteries will rise to 470,000 tonnes next year. This is only a 10,000 ton increase from 2025. Imai stated that "China is restricting the export of LFP technology, which will increase demand for conventional EV batteries with nickel." Yuka Obayashi reported.
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Indonesia concludes search for victims after boarding school collapse. 61 dead
Indonesian rescuers finished their search for victims under the rubble in East Java province on Tuesday after recovering more than 60 corpses, according to disaster authorities. Last week, the small town Sidoarjo was engulfed in grief and confusion after the Al Khoziny School collapsed on hundreds of people - mostly teenagers - while they were praying. Most escaped. In a statement the disaster mitigation agency announced that all 61 bodies in the building had been located, along with seven body parts police are trying identify. The search was halted for the worst disaster of the year, which it called. Mohammad Syafii is the chief of the Search and Rescue Agency. After authorities removed the debris, he said, "Operations due the collapsed structure at the Al Khoziny School... are now officially closed." Budi Irawan is the deputy chief of the agency. The rescuers used cranes and excavators to lift huge chunks of concrete. As they dug through the tunnels, rescuers shouted names of those presumed still alive. Al Khoziny, also known as a pesantren in Arabic, is one of over 42,000 schools of this type across the country. Only 50 have building permits, according to the Public Works Ministry. It was impossible to determine if Al Khoziny possessed a permit or contact school authorities. Media reported that Sidoarjo Chief Subandi said last week the school allegedly did not have a permit. (Reporting and editing by Clarence Fernandez; Stanley Widianto)
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Morning bid Europe-Deepening darkness in Paris
Rae Wee gives us a look at what the European and global markets will be like tomorrow. France is once again in a deep political crisis, with five different prime ministers having been in office in just 21 months. This is not good news for investors looking to invest in Paris. The markets will probably face another day of turmoil on Tuesday following the shock resignation of Prime Minister Sebastien lecornu. This came only hours after Lecornu announced his cabinet, making this the shortest-lived French government in modern history. Lecornu has been asked by French President Emmanuel Macron to have last-ditch discussions with other political parties in order to find a way out of this crisis. However, the damage is already done. The French OAT futures fell slightly during the Asian session, after bonds plunged on Monday. Attention will be focused on the Paris CAC 40 when the markets open in the afternoon. BCA Research, a research firm, has said that French bonds are uninvestable. Rating agencies have issued new warnings regarding France's sovereign debt score. France has the highest budget deficit within the Eurozone, almost twice the European Union preferred limit of 3%. Since Macron's reelection in 2020, the nation's finances have been vulnerable and political instability has increased, due to the lack of a majority party or group in parliament. The Nikkei soared to yet another record on Tuesday in Japan. Meanwhile, the yen and Japanese government bonds (JGBs) remained weak. Investors were bracing for an increase in spending, as well as a looser monetary policy, under Sanae Taichi, who will be the next premier of the country. Takaichi has been favored by the majority of the ruling coalition, which holds the most seats in the parliament. As usual, the slide in the Japanese yen attracted the attention of the authorities. Japanese Finance Minister Katsunobu Kato stated on Tuesday that his government would be on guard for volatile currency movements. The auction of 30-year JGBs on Tuesday was closely watched and seen as a test to see if investors were ready for the expected expansion in Japan's spending and monetary policy. This eased concerns that investors would be reluctant to buy long-dated bonds due to the uncertainty of fiscal policy. JGBs recovered some of their losses after the auction, and yields fell. The following are key developments that may influence the markets on Tuesday. French Politics Bowman, Bostic and Kashkari, Fed officials, speak
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Oil extends gains on smaller-than-expected OPEC+ output hike
Oil prices extended gains on Tuesday as a smaller-than-expected November output hike by OPEC+ helped to ease some fears of a growing supply glut. Brent crude futures rose 23 cents or 0.35% to $65.70 per barrel at 0356 GMT. U.S. West Texas Intermediate Crude climbed 21 cents or 0.34% to $61.90. The previous session saw both contracts settle more than 1% above the previous one after the Organization of the Petroleum Exporting Countries, Russia and other smaller producers - also known as OPEC+ – decided to increase their collective oil production from November by 137,000 barrels a day. Analysts at ING said that this move contrasted with market expectations of a more aggressive reintroduction. It was a sign the group is still cautious about increasing their production share on the global oil markets, despite predictions of a surplus of supply in the fourth and next years. Anh Pham is a senior analyst with LSEG. She said that Brent had dropped by $5 per barrel in the previous week due to expectations for a bigger supply boost. This mild rebound therefore seems reasonable. He added, "For the moment, the market appears to be able to accommodate the additional volume and we have not yet seen a change into contango on the front curve." OPEC+ increased its oil production targets by over 2.7 million bpd in this year. This is equivalent to around 2.5% of the global demand. The geopolitical situation has kept prices in check, as the conflict between Russia and Ukraine is affecting energy assets and creating an uncertainty about Russian crude oil supply. Two industry sources reported on Monday that the Russian Kirishi oil refining plant halted CDU-6's most productive distillation after a drone attack on October 4 and a subsequent fire. The unit is expected to recover in about a month. Despite the increase in oil production by both OPEC+ members and non-OPEC+ members, oil prices are still under pressure. Analysts said that any slowdown in the demand caused by weak economic growth due to U.S. tariffs would likely exacerbate this surplus.
Trump's SEC chief shifts power away from investors and into boardrooms
Experts say that new policies by the U.S. Securities and Exchange Commission give corporate boards greater power over investors. This could limit investor-initiated efforts to reform everything from climate policy or director contests.
Since the U.S. president Donald Trump appointed Mark Uyeda as acting chairman of the Securities and Exchange Commission last month, the agency has made a number of changes. They have increased the filing requirements for passive funds and limited the communication capabilities that investors can use.
Attorneys say that the changes will give directors greater freedom to ignore efforts to limit emissions and report diversity in the workforce. Traditional activists who run their own director slates may also find it more difficult to challenge boards.
Ann Lipton, a professor of business law at Tulane University, said: "It is a reallocation that is relatively dramatic. It's not only to make corporate policies but also to protect them against activists."
Uyeda, along with other Republican officials, including Paul Atkins, Trump’s nominee to lead the SEC, have expressed their skepticism about environmental, social, and governance (ESG), investment considerations. Uyeda stated in a speech from 2023 that "shareholder meetings were never intended to be debating societies or political battlegrounds under state corporate law."
A spokesperson for the SEC declined to comment upon being contacted. Atkins didn't respond to any questions posed by his current firm.
Fewer ballot items
The SEC changes are consistent with other Trump Administration efforts, such as the dismantling of diversity programs and withdrawal from the Paris Climate Agreement.
ESG resolutions received significant support between 2021 and 2022 but have declined since. In a legal bulletin issued on February 11, the SEC encouraged companies to avoid voting on resolutions by claiming that the proposals would "micromanage" the businesses.
This change could make the process of negotiating with executives difficult for activists who are interested in ESG.
Rick Alexander, CEO at Shareholder Commons (which tracks and writes resolutions), said that it would be more difficult to carry out this kind of work if it was harder to get a resolution passed by the SEC.
The SEC revised its "beneficial ownership" reporting interpretations on February 11, allowing firms such as asset managers BlackRock or Vanguard to rely more on SEC Schedule 13G forms to report their major holdings.
The agency has tightened the rules on when managers may use the Schedule 13D form instead of the more complicated Schedule 13D which increases their costs. The SEC will now test if an organization "imposes pressure" on management, such as by tying director voting to the presence of a staggered or poison pill defense against takeovers.
BlackRock and Vanguard both have policies on proxy voting that suggest these circumstances could lead critical votes.
BlackRock and Vanguard declined comment.
Caroline Crenshaw via email, the only Democratic member currently on the SEC said that the change may have a negative impact on the outreach of big funds.
The interpretation confuses institutional investors with an unstated aim of discouraging them from engaging in business with corporations. Crenshaw stated that this policy was bad for capital creation.
Communication Breakdown
Thirdly, new guidelines have been issued on the use of electronic records by investors to send out "exempt solicitations" or communications between shareholders.
Smaller investors have started to file their own exempt solicitations to express their opinions on certain issues, such as whether they should oppose a director or support a resolution by shareholders.
In an update on January 27, the SEC restricted their use. The SEC stated that the documents "are not intended to be used as a means by which someone distributes written soliciting materials to security holders" but are only meant to inform the public about written materials sent through other means to security holders.
Tom Quaadman is Senior Vice President of the U.S. Chamber of Commerce. This top business lobbying organization welcomed the SEC changes.
He said: "You are seeing a rebalancing in SEC rules and policies that is designed to remove special interest activism, and to bring things back to an investor-focused focus." Reporting by Ross Kerber, Boston. Simon Jessop, London editor.
(source: Reuters)