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Sources: ADB will provide $410 Million package to Barrick's Pakistan mine
Two sources confirmed on Thursday that the Asian Development Bank would provide $410 million to Barrick Gold for its Reko Diq Copper Mine in Pakistan, which is one of the largest untapped deposits in history. Islamabad hopes that the project will be a springboard for attracting more foreign interest in its mineral sector. Pakistan has already drawn interest from the Trump Administration and offered future concessions for U.S. firms. The loan and financing guarantee will be used to support the development of Reko Diq. It is anticipated that Reko Diq will produce copper and gold by 2028, and it should generate approximately $70 billion over its lifetime in free cash flow. Both sources confirmed that the financing consisted of two loans to Barrick totaling $300 million and a financing guarantee of $110 million for the Government of Pakistan. Barrick owns 50% of the $6.6 billion Balochistan project, while the remaining half is owned by the federal government and the provincial governments. ADB, Barrick and the Petroleum Ministry did not respond immediately to comments. The project is aiming to raise up to $2 billion. It has an agreement with the International Finance Corporation (the private investment arm of the World Bank) for $700 millions in financing. Tim Cribb, the project's director, told us in April that they were in discussions with other potential financiers including Export Development Canada, U.S. Export-Import Bank and Japan's JBIC. They expect to sign terms sheets in this quarter. Reko Diq was delayed by years due to a legal dispute which was finally settled in 2022. It will initially produce 200,000 tons of copper per year, but this figure will rise to 400,000 after expansion. Barrick claims that the mine can operate for an additional 37 years through exploration and upgrades. Reporting by Saeed Shahid and Ariba Shehid in Islamabad. Editing by Jane Merriman, Joe Bavier.
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Vattenfall, Sweden shortlists Rolls Royce and GE Vernova for SMR nuclear reactors
Vattenfall, the Swedish state utility, announced on Thursday that it had selected Rolls-Royce SMR from Britain and GE Vernova of the United States as candidates for its planned construction of a small modular reactor (SMR). The Swedish parliament passed legislation in May to finance a generation of new nuclear reactors. According to the government, these are essential to achieve energy security and net zero emissions before 2045. Vattenfall will order five BWRX-300 nuclear reactors from GE Vernova, or three Rolls-Royce SMRs. These reactors will have a combined output of 1,500 MW. This will be the first new nuclear reactors Sweden has had in over 40 years, Vattenfall said in a press release. Nuclear power, once thought to be doomed after the nuclear accidents in Chernobyl (Ukraine) and Fukushima (Japan), has experienced a resurgence in recent years. This is due to countries' efforts in phasing out fossil fuels in order address climate change and phase out coal. Sweden wants to build a minimum of 2,500 MW nuclear capacity by the year 2035. The government wants to build the equivalent of 10 full-size reactors in total by 2045. Ulf Kristersson, Swedish Prime Minister, said on X: "Now it is happening - Sweden will have a more competitive, stable and climate friendly energy production with the new nuclear power." It's good for both Swedish families and industrial economy. The government estimates that Sweden's electricity demand will double in the next 20 years to 300 terrawatt-hours, largely due to the growth of new industries, such as green steel, biofuels, and large-scale production of hydrogen. The government claims that these industries will move elsewhere if there is no new energy capacity, such as nuclear power. The industry has been reluctant to invest, and now the government will shoulder the majority of the nuclear financing.
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Lavrov: Russia is interested to work with India on joint energy projects
Sergei Lavrov, the Russian foreign minister, told his Indian counterpart at a meeting in Moscow on Thursday that Russia and India had achieved good results with their energy cooperation. Moscow is also interested in working together on joint energy projects. Since U.S. president Donald Trump raised tariffs on Indian imports earlier this month due to its purchase of Russian oil, Moscow and New Delhi have talked about their "strategic partnerships". "We are seeing good results from our cooperation in the hydrocarbons sector. We supply Russian oil to India. We have a shared interest in developing joint projects to extract energy resources in Russia, in the Far East as well as on the Arctic shelf", Lavrov stated. He spoke at a Moscow joint press conference with Indian Foreign minister Subrahmanyam Jishankar. After the West imposed sanctions against Moscow for its conflict in Ukraine, Russia was able divert its oil exports, which are a major source of revenue to the state, away from Europe, and mostly to China and India. India and China are two of the largest buyers of Russian oil. On Wednesday, officials from the Russian Embassy in New Delhi stated that Russia Expected to continue providing oil Moscow hopes trilateral talks between India and China will soon be held despite the pressure of the United States. Dmitry Antonov, Lucy Papachristou and Andrew Osborn edited the article.
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US and EU sign trade agreement; US official expects tariff relief for autos in weeks
The United States, the European Union and Canada have signed a framework agreement on trade that was reached last month. It includes a 15% U.S. duty on many EU imports including automobiles, pharmaceuticals semiconductors and wood. In a three-and-a half page joint statement, both sides listed their commitments, including the EU’s pledge to remove tariffs on U.S. industrial products and to offer preferential access to a variety of U.S. agricultural and seafood goods. Washington will reduce the current 27,5% U.S. Tariffs on Cars and Car Parts, which is a huge burden on European carmakers once Brussels introduces legislation to enact the promised tariff reductions on U.S. products, it said. After months of negotiation, U.S. president Donald Trump and European Commission president Ursula von der Leyen signed the agreement on July 27, at Trump's luxury Golf Course in Turnberry (Scotland) after an hour long meeting. Both leaders hailed their framework agreement as a historic achievement. They met again in this week's negotiations to end Russia's conflict in Ukraine. In a joint statement, the two leaders said that over time, they could expand their agreement to include additional areas and improve market access. According to a senior administration official who spoke on condition of anonymity as they were not authorized by the government to speak in public, European automakers will be relieved from current U.S. Tariffs "hopefully within weeks." We will provide this relief as soon as the legislation is introduced. I do not mean that it has been passed and implemented fully, but that it's really introduced. "I will also say that both parties are interested in moving fast," they said. Officials said that the joint statement was "a way to ensure both sides follow through on the commitments made last month" and held each other accountable. The official stated that "we are trying to sequence together with the European Union in order to ensure that... they feel enough pressure to obtain the mandat they need to start the legislative process to reduce their tariffs as they have promised." We're confident they'll do it. It's good to ensure that all parties are on the same page, and take action at the same time. In the statement, it was stated that the U.S. tariff reduction on autos and parts would begin on the first of the month when the EU introduces the legislation. This could offer retroactive relief to carmakers. The exact date of the EU's legislative process is not yet known. In a joint statement, the U.S. and EU agreed that they would only apply tariffs based on Most Favored Nation from September 1, 2009, to EU aircraft, parts, generic pharmaceuticals, chemical precursors, and natural resources unavailable, such as cork. The EU reiterated its intention to purchase $750 billion worth of U.S. LNG, oil and nuclear products plus another $40 billion worth of artificial intelligence chips. The EU also reiterated its intention to invest an extra $600 billion in strategic U.S. sectors by 2028. The statement stated that both sides agreed to eliminate "unjustified digital barriers" and the EU agreed to not adopt network usage charges. Both parties agreed to negotiate origin rules to ensure that both benefit from the agreement. They also said that they would look at ways to work together in order to protect their respective markets for steel and aluminum from overcapacity. This could include tariff quotas, as well as ensuring secure supply chain between them. (Reporting and editing by Kate Mayberry; Andrea Shalal, David Lawder)
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Whitehaven shares erase loss on better than expected profit and payouts
Shares in Australia's Whitehaven Coal bounced back from early declines on Thursday, as the miner posted a smaller-than-expected decline in annual profit and plans to boost shareholder returns. The largest independent coal mining company in Australia announced a final payout of 6 Australian cents for each share. This was higher than the Visible Alpha consensus estimate of 5 Australian cents. Whitehaven also plans to spend A$48million on share buybacks. The shares ended the day 3.1% higher, at A$6.63, ending a losing streak of six sessions. Stocks had fallen more than 4% in the morning after the results. Whitehaven reported a underlying profit after tax of A$319,000,000 ($205,000,000) for the fiscal year ending June 30. This is 22% higher than Visible Alpha's estimate of A$261.1,000,000, but less than last year's A$740,000,000 due to lower coal prices and increasing costs. The global coal price has been trending lower this year due to softer Asia demand as well as abundant supply. Whitehaven expects coal unit costs to be between A$130 and A$145 per tonne in fiscal 2026, down from A$139 in 2025. Citi stated that the company was focused on meeting its range, as many would have expected to see a lower end. Dividends and share repurchases will be used to increase the payout target from 20% to 50% to 40%-60%. Whitehaven has also reduced its funding for Narrabri Stage 3 Extension in New South Wales from an estimate of A$800 to A$850 millions to A$260 to A$300millions, reflecting changes to the planning. Citi noted in a report that the revised mining plan reduces capital expenditures and delays major equipment purchases. Jefferies stated that the updated capital-management framework was widely anticipated, and it highlighted the miner’s focus on flexibility of the balance sheet in light of the weaker coal market.
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Copper prices fall as Markets Await Jackson Hole Speeches
Copper prices fell Thursday, as markets awaited the Federal Reserve annual symposium in Jackson Hole on Friday and Fed Chairman Jerome Powell's address. At 0941 GMT, the benchmark copper price on London Metal Exchange fell 0.4% to $9685 per metric ton. On Wednesday, it reached $9,670.50 - its lowest level since August 7. The weakness is due to the Jackson Hole conference, where speeches are expected to be very important. "Some risk aversion has also started to creep in, as seen in the decline in tech shares," said Dan Smith of CommodityMarket Analytics. The odds of a Fed rate reduction next month have slipped to 82%. This has mildly supported the dollar, as investors continue to focus on Powell's ability to push back against expectations for a September rate cut. Rate expectations play a major role in the overall sentiment towards industrial materials, as their demand is dependent on economic growth. The data released on Thursday showed that new orders in the euro zone increased in August, for the first since May 2024. This helped to boost overall activity at its fastest rate in 15 months. Codelco, the Chilean copper company, announced that it would reduce its production forecast for 2025 after an accident in its flagship El Teniente Mine reduced the output by 33,000 tons. Codelco stated in March that it was aiming for a 2025 production of between 1,37 million and 1,4 million tons. Other metals saw aluminium fall 0.2% at $2,571 per ton, while zinc fell 0.9% at $2,762.50. Lead dropped 0.6%, to $1,969; tin was down by 0.3%, to $33,485; and nickel, which is now $14,960, was down 0.3%. (Reporting and editing by Polina Devitt. Mark Potter edited the article.
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Study shows that China's carbon dioxide emissions will fall in the first half 2025.
According to a study conducted by the Centre for Research on Energy and Clean Air in Helsinki, China's carbon emissions fell 1% from the same time period last year to the first half 2025. This was due to the growing use of renewable energies to generate electricity. According to a study conducted by CREA's Lauri Myllyvirta, lead analyst for UK-based Carbon Brief, emissions from the China power sector fell by 3% over the past six months. Myllyvirta attributes the drop to the more renewable electricity generated by China's rapidly expanding fleet of solar power stations, which will see yet another record year of capacity additions in the year 2025. This puts emissions on track to a full-year decrease in 2025. A request for comment made outside of normal business hours was not immediately responded to by the Ministry of Ecology and Environment. China, which is the largest CO2 emitter in the world, reported a decline in carbon dioxide emissions every year in 2022. This was due to the COVID Pandemic. China has set targets to peak emissions by 2030, and reach net-zero emission by 2060. Gas consumption for electricity increased 6% between January and June, while coal use fell 3%. Due to China's weak real estate sector, emissions also decreased in metals, cement, and steel. The study found that carbon emissions in China's chemical industry continue to rise, despite the fact that they are not increasing as fast as other sectors. In the first half, coal was used as an input in synthetic fuels and other petrochemical products. According to the analysis, China's carbon dioxide emissions have increased by 3% since 2020 due to coal-tochemicals. This could increase by another 2% in 2029. Reporting by Colleen Waye Editing Mark Potter
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Prices of gas in Europe are fluctuating as renewables offset increased demand
The Dutch and British wholesale prices of gas traded in a narrow band on Thursday morning as a slight decrease in temperatures, which boosted residential demand, was offset by higher renewable production. LSEG data shows that the benchmark Dutch front-month contract was up 0.65 euros to 32.42 Euro per megawatt hour or $11.08 per mmBtu at 0921 GMT. The British front-month price rose 1.32 pence to 80.33 pence/therm. However, the day-ahead price increased 0.10 pence to 80.30 pence/therm. According to Wayne Bryan, principal of gas research at LSEG, the fundamentals for the day are balanced with an increase in local distribution zone demand (residential), which is offset by a decrease in the (gas-for) power demand expected due to a stronger renewables. The forecast for residential demand has increased by 51 gigawatts per day, to 667GWh/d. LSEG data shows that temperatures will be below the normals of 10 and 30 years from Thursday to at least August 26. Gas for power is also expected to be lower on the day, with a decline of 84 GWh/d due to an increase in wind and solar energy production, as well as a rise in French nuclear capacity. Bryan said that any extensions or unplanned outages to maintenance, including those scheduled for Norwegian maintenance starting on August 27, could increase the price. LSEG data shows that Ormen Lange in Norway has begun corrective maintenance on its Ormen Lange plant, with an estimated impact of 12,000,000 cubic metres per day. It is expected to finish on September 12. Analysts at Engie’s EnergyScan wrote in a morning report that the lack of progress in the negotiations for a peace agreement in Ukraine should support energy markets. Gas Infrastructure Europe data shows that EU gas storage sites are currently 74.49% full. The benchmark contract on the European carbon markets was up by 0.60 euros at 71.89 Euros per metric ton. Marwa Rashad is the reporter. (Editing by Elaine Hardcastle.)
European stocks drop, but dollar remains steady as traders await Jackson Hole
Early trading on Thursday saw European stock markets fall slightly, just below their recent highs. Traders avoided big moves, instead waiting for the three-day annual Jackson Hole Symposium of the Federal Reserve.
Jackson Hole begins on Thursday, and traders will be watching for clues about the possibility of a rate cut in September. Fed Chair Jerome Powell is expected to speak on Friday.
People are sitting around. "You have two big unknowns in the near future, Jackson Hole tomorrow, and the Fed on September," said Tim Graf. He is head of macro strategy at State Street Markets for EMEA.
He said: "Now is the time to let people know that you are going to relax, and it will be coming." "But I also see them saying that we don't yet know the full impact of tariffs, and inflation pressure hasn't quite left the economy. Being a bit less balanced." The traders had increased their bets on a September reduction after a surprising weak payroll report at the beginning of this month. They were also encouraged by consumer price data which showed that tariffs have only limited impact. They lowered their expectations after the minutes of the Fed's meeting in July were released. The stock markets in Asia remained near their recent highs, while Australia's benchmark reached a new record.
At 0946 GMT the pan-European STOXX 600 fell by 0.2%. It was just below its five-month high from the previous session. London's FTSE 100 fell 0.1%. Germany's DAX dropped 0.1%. France's CAC40 was down by 0.4%.
The MSCI World Equity Index fell 0.1% for the day.
U.S. Stock Futures are mixed. Nasdaq E-minis remain steady, but S&P500 e Minis have fallen by 0.1%. The U.S. technology sell-off continued on Wednesday for a second consecutive day, a trend analysts attribute to high valuations and profit-taking, as well as risk aversion. The PMI data for August showed that business activity in the Eurozone accelerated, with Germany recording its highest growth since March, and France's recession easing.
The benchmark German Bund 10-year bond yield was 2.7374%, the highest of all euro zone bonds.
The yield on the 10-year U.S. Treasury was 4.3101%. The U.S. Dollar Index was up by 0.2% for the day, at 98.225. The euro was unchanged at $1.1653. Donald Trump, the U.S. president, intensified his efforts to influence the Federal Reserve Wednesday. He called on Federal Reserve Governor Lisa Cook resign based on allegations made by a political ally about mortgages that she holds in Michigan or Georgia. Cook stated that she "had no intention" of being pushed to resign from her role at the Federal Reserve.
In a research note, analysts at Deutsche Bank attributed the rise in gold over night to renewed concerns regarding the Fed's autonomy.
The news reminded the market of the concerns about future Fed independence, and the risks of fiscal dominance. However, the reaction of the markets was relatively modest," Deutsche Bank stated.
Tim Graf, State Street Markets, said that while central bank independence was considered "sacrosanct by the markets", it wasn't yet a problem.
He said: "Markets look at this quite correctly, and there is a risk premium in the price, but I don't think it upsets things too much."
Gold prices fell slightly on Thursday to $3340.61 an ounce.
The U.S. demand for oil has boosted the price of crude.
(source: Reuters)