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Barrick is committed to Pakistan's Reko Diq Copper Project, says interim CEO
Barrick Mining Corp.'s interim CEO confirmed on Tuesday that the company is committed to the Reko Diq Copper Mine in Pakistan. It is one of the largest undeveloped copper deposits in the world. The company and Pakistani authorities are in a partnership of equals to develop the $7 billion project, located in the insurgency-ravaged western province of Balochistan. Production is expected by the end 2028. Barrick's Board had discussed the possibility of splitting up the company assets. This could include a sale of Reko Diq and its African assets. Mark Hill said that Barrick remains committed to Pakistan and the Reko Diq Project. Security, scale, and stake are all important factors for this mine. Balochistan is a region that suffers from frequent attacks by separatists or jihadists. The project requires an upgrade of the railway line to transport copper concentrate from Karachi to be processed abroad. The International Finance Corporation, the Asian Development Bank and others are working on a package of financing that exceeds $2.6 billion. The Reko Diq Project added 13 million ounces of gold to Barrick's reserves in 2024. It is expected to produce 200,000 tons of copper per year in its initial phase and double after expansion. With projected free cash flows of over $70 billion in 37 years, the project has a total financing package of over $2.6 billion. PAKISTAN’S MINERAL PLAY Barrick's remarks underscore the importance of Reko Diq to Pakistan and to the company. Islamabad relies on the mine as the anchor for its minerals strategy, while the Canadian miner is advancing one of its biggest long-term projects. Sources familiarized with Barrick's thinking said this month that some board members and shareholders are concerned that Barrick's exposure to riskier assets, such as those in Pakistan and Africa, may weigh on its valuation in comparison with its more secure North American operations. This is especially true in light of potential takeover interests. Barrick returned in 2022 to Pakistan after a long-running legal dispute was resolved. The mine has become a flagship project for Pakistan as it seeks more capital to invest in its minerals sector.
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Gold prices hold steady as US Fed rate cuts bets are reinforced by data
The gold price remained largely unchanged on Tuesday as traders expected the Federal Reserve to cut interest rates by December due to weaker-than-expected retail sales in the United States. By 09:36 am, spot gold was down 0.2% at $4,130.85 an ounce. ET (1436 GMT). The prices rose by nearly 2% after some Fed policymakers indicated support for the third rate cut of this year. Prices had reached their highest levels since November 14 earlier in the day. U.S. Gold Futures for December Delivery rose by 0.8% to $4127.40 an ounce. Peter Grant, senior metals analyst at Zaner Metals, said that recent Fed dovishness has revived hopes for a rate cut in December. This (data) does not seem to change this. The retail sales in September were lower than expected, following a period of rapid growth. Data showed that the U.S. Producer Price Index increased by 2.7% for the 12-month period ending in September after increasing by the same margin during August. The 43-day government shutdown delayed the report. CME data shows that the markets are pricing an 85% probability of a rate cut in December - up from 30% last week – and a 64% chance of one in January. Federal Reserve Governor Stephen Miran stated on Tuesday that the deteriorating state of the job market requires further rate cuts. This is in line with remarks made by Fed Governor Christopher Waller, who was dovish on Monday. Gold that does not yield tends to perform well when interest rates are low and there is geopolitical or economic instability. ActivTrades analyst Ricardo Evangelista stated that "economic uncertainty, geopolitical turbulence, and dovish Fed expectation continue to support the gold price (in near-term)". Silver spot rose by 0.1%, to $51.41 an ounce. Platinum rose by 0.3%, to $1.548.80, and palladium fell 0.2%, to $1.392.79. (Reporting from Pablo Sinha, Bengaluru. Additional reporting by Sherin E. Varghese. Editing by Louise Heavens.)
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UK stockpiles critical minerals and accelerates lithium plants
The UK will stockpile critical minerals as part of its defence procurement plans and is expecting that lithium processing projects in Northern England will begin within the next couple of years, in an effort to reduce its dependence on China. The government announced its critical minerals strategy, last week. It set a target to meet 10% domestic demand by UK mining, and 20% by recycling, by 2035. This was backed up by funding of up to 65.58 million pounds. To reduce the risk in the supply chain, it is also hoped that no more than 60 percent of any mineral will come from a single source by this date. On Tuesday, Industry Minister Chris McDonald said that two London companies planning to build lithium refineries to supply battery grade materials for electric cars in Teesside in northern England were "very close to the end stage" and predicted that "spades will be in the ground" within the next few years. He said that Britain's biggest lithium reserves are located in Cornwall where mining operations have begun but require support to be scaled up. Global Alliances are part of Strategy The UK needs to ensure a long-term, secure supply of minerals like copper, lithium, and nickel that are used in electric cars, smartphones, and data centres supporting artificial intelligence. This push is a reflection of China's dominance, which leaves supply chain vulnerable to disruption. About 70% of rare-earth mining and 90% refining is done in China. McDonald said Britain is working with NATO, IEA, and G7 to improve supply chain resilience. He was also open to bilateral agreements outside of these frameworks. This includes Australia, which has a strategic reserve. He cited the AUKUS defence agreement, pointing out that critical minerals are "very much" a part of this relationship due to their role in supply chains for defence. He said that the procurement plan of [the Ministry of Defence] is also part of this strategy, and includes stockpiling of essential minerals. Last month, Australia and Washington signed a deal to counter China's dominance of critical minerals. Australia pledged an $8.5 billion pipeline project as well as preferential access to the proposed reserve. Canberra claims that the agreement has attracted interest from the EU and South Korea. The governments are scrambling to secure supplies of electric vehicles, defense systems, and data centres for artificial intelligence. Britain is also under pressure. According to estimates by the government, copper consumption will nearly double by 2035 and lithium demand will increase by 1,100%. The U.S. Inflation Reduction Act is introducing subsidies to the U.K., which will increase competition for investment. The plan also includes recycling. McDonald said that projects are expected to begin next year. The processing capacity is set to increase across Britain, Europe, and the United States. McDonald said that businesses are planning to start operations in the lithium-recycling area in 2026. He cited efforts to meet 20% Britain's crucial minerals demand with reused materials.
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Iran raises fuel prices in limited circumstances
Iran will increase the price of heavily subsidised fuel in certain circumstances, according to the semi-official Tasnim News Agency on Tuesday. The OPEC member is trying to curb the increasing demand for fuel without provoking public anger. Tasnim reported that "the government has decided, starting in December to charge a rate for refuelling emergency fuel cards at 50,000 Iranian Rials per litre (0.44% of the free market price)" and added that this rate represents 10% of the cost of buying one litre fuel from refineries. Fuel stations accept emergency cards if the driver does not have their smart card. The smart card was introduced in 2007 and allows drivers to buy up to 60 litres for 15,000 rials ($0.14) per litre, or up to 100 litres for 30,000 rials ($0.27) per litre. Tasnim reports that domestic fuel production, which is around 110 million litres a day, can be exceeded by the rising demand, which could reach up to 140 millions litres a day, due to factors like inefficient cars and summer heat. Officials from the Iranian government have warned that fuel subsidies are "not rational", burdening state finances and encouraging suboptimal consumption. They also warn of fuel imports. The sudden increase in fuel prices in Iran in 2019 that led to protests and the suppression of the state was not the same as the introduction of a 'third pricing rate' for fuel. Tasnim released the document of the cabinet decision, which mentions that drivers who own multiple cars can only use the smart card quotas on one car, whereas government vehicles, newly produced cars, and imported foreign cars must pay the higher rate. The document states that further changes, such as lower gas quotas on CNG powered cars, which make up a significant share of taxis in the country, will be expected to take place in February. Reporting by Dubai Newsroom. Mark Potter (Editing)
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Bloomberg News reports that Canada's Barrick will pay $430 Million to settle a dispute over a gold mine in Mali.
Bloomberg News, citing sources familiar with the situation, reported Tuesday that Barrick Mining had agreed to a settlement of 244 billion CFA Francs ($430 millions) with Mali. After two years of negotiation, the Canadian miner and Mali's Government reached an agreement on Monday to settle all disputes regarding the Loulo-Gounkoto Gold Mining Complex. Barrick announced that it would drop its arbitration case against Mali before the World Bank dispute tribunal in exchange for Mali dropping all charges against Barrick, its affiliates and releasing four employees from prison. Bloomberg News reported that Barrick must pay Mali 144 billion CFA Francs in six days after signing the agreement. The report stated that another 50 billion CFA Francs will be paid via offsets of VAT credits, while a payment of the same amount was made last year. Barrick Mining refused to comment while Mali’s Mining Ministry didn’t respond to a comment request.
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EU antitrust regulators suspend probe into MMG Anglo American deal
An update posted on the European Commission's website on Tuesday showed that EU antitrust regulators had paused their investigations into MMG, a Hong Kong-listed company which owns Anglo American's Brazilian Nickel business. On November 24, the EU executive, acting as the EU Competition enforcer, halted the clock. The 'clock' can be stopped in merger investigations if parties do not provide important information requested by the Commission (for its assessment of competition) in a timely manner. The Commission will adjust the deadline to reflect the new information once the parties have provided it. The Commission warned in this month that MMG could divert ferronickel away from Europe and harm European steel producers. This deal comes amid global concerns over the supply of minerals, as well as China's dominance. MMG's largest shareholder is the state-owned Chinese firm China Minmetals Corporation. Reporting by Foo-Yun Chee, Editing by Jan Harvey & David Goodman
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Bessent: Chinese soybean purchases are on schedule, according to CNBC
The Chinese purchase of American soybeans is "right on time", U.S. Treasury secretary Scott Bessent stated on Tuesday. He cited an agreement that Beijing will buy 87.5 millions metric tons of U.S. products over the next three-and-a-half years. Bessent, in an interview with CNBC said that the U.S.-China relationship is on a positive track. Donald Trump praised the "extremely solid" relationship between China and the United States on Monday after a phone call with Chinese President Xi Jinping. The call was made weeks after the leaders of China and South Korea met in South Korea to agree on a framework agreement for a trade deal. Bessent stated that Trump and Xi may meet four times in the next year. Trump could attend the Asia-Pacific Economic Cooperation Summit, which China will host in 2026. Xi is in the United States to attend the annual gathering of the Group of 20 Industrialized Nations. Bessent stated that the two leaders would also visit each other's country. Reporting by Susan Heavey, Doina Chiacu and Andrew Heavens; Editing and Emelia Sithole Matarise
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Russell Russell: China can help Asia's diesel market, which is tightening up.
China could help ease the tight diesel market in Asia in December by increasing exports to compensate for reduced shipments from Indian refiners due to sanctions on Russian crude oil. According to trading sources the exports of China's diesel could reach 4.5 million barrels by December as refiners make use of high margins to produce this transport fuel. If the December loading cargoes rise to the level expected, this would be the best month since August. It is also a big jump from the forecast of commodity analysts Kpler that November exports will total 2.76 million barrels. China has the second largest oil refinery capacity in the World, but it uses less than 80% at the major state-owned facilities, and even less for smaller independent processors. Exports are also regulated by government quotas. These are primarily based on ensuring the domestic security of fuel, rather than market forces which allow refiners a higher profit margin when margins increase. China's refiners may still have enough quotas to increase December exports for diesel, jet fuel and other middle-distillate fuels. China has issued quotas for 8,395 millions metric tons of diesel, jet fuel, and gasoline. This brings the total amount for the year up to 40,195 million tons. That's about the same as 41.0 million for 2024. According to data released by the government on November 18, refiners exported 29,91 million tons of these three fuels during the first 10 month of the year. The quotas are available for exports of about 10,29 million tonnes of each of the three fuels in November and December. Kpler predicts that November exports for the three products will be approximately 1.58 million tonnes. While this number may increase as more cargoes arrive at the end of the calendar month, it's clear that refiners have enough remaining quotas available to boost December exports. MARGINS ROBUST FOR FUEL The refining margins of diesel and gasoline are at their highest levels in two years. Singapore's profit from making a barrel gasoil (the building block of diesel) ended Monday at $24.37, down from the previous close of $25.97, as traders factored in the possibility that Chinese exports could increase next month. The spread reached $31.25 per barrel on 19 November, the highest level since 23 September and up 140% from the lowest point in 2025 at $13.05 on 25 March. Profit margins on a barrel gasoline On Monday, the price was $14.54, up from $14.42. The price of a barrel had risen to $17.71 on November 14. This was the highest level since August 29, 2023. It is also almost five times higher than the lowest point in 2025, which was $3.68 a barrel. The recent improvement in the refining margins is partly due to the weakening of exports to India. According to Kpler, shipments of jet fuel, diesel and gasoline to the South Asian country are expected to fall to 4,34 million tons by November. This will be the lowest level since April, and the lowest so far for 2025, which was 5.54 million tonnes in September. In India, several refiners have been forced to look for alternative crudes in order to replace the Russian oil they were buying at a discount before the latest U.S. sanction on Russian oil companies. India's refiners are likely to find alternative crude oil supplies, so the decline in refined product exports is only likely to be a temporary phenomenon. While there may be a market gap, China appears to be the best placed country to benefit from additional gasoline and diesel. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
Central bank of South Africa: South Africa's financial stability persists despite market recovery
The South African financial system is resilient, despite rising debt risks and geopolitical tensions, said the central bank on Tuesday. Local markets are recovering from volatility, and fiscal conditions have improved.
The South African Reserve Bank, in its biannual Financial Stability Review, said that global markets are showing strength, driven by technology stocks and artificial intelligence. South African equity markets also recovered after U.S. Tariff hikes in April.
This month, the Johannesburg All-Share Index reached a record high of 114,000 points.
The report revealed that government bond yields have fallen to their lowest levels in six years, thanks to improved fiscal prospects. This was aided by a lower inflation rate, removal from Financial Action Task Force's grey list, tighter inflation targets, and an upgrade of S&P Global Ratings credit rating.
The public debt is still high at 78.1%, but the short-term fiscal consolidation has been supported by higher tax revenues and reserves.
The SARB stated that "despite increased geopolitical tensions and trade tensions," rising equity prices continued to support an easing of domestic financial conditions.
"Long-term bonds yields are lower this year than they were in previous years. This reduces pressure on financial conditions." The growth rate of household debt has declined, contributing to tighter financial conditions. However, this has been partly offset by an increase in corporate credit through 2025.
The report said that the banking sector's profitability was above its 10-year-average, and capital buffers were robust.
SARB highlighted key risks including capital outflows and rising distress among households and small and medium enterprises, infrastructure weakness and cyber threats. The SARB said that systemic risks "remain benign" with the easing of financial conditions, and a credit to GDP gap below risk thresholds.
The SARB stated that "Overall, South Africa's financial system was resilient and is expected to remain resilient over the forecast period until November 2026." (Reporting and editing by Alex Richardson; Nqobile Dudla, reporting)
(source: Reuters)