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Sources say that Ivory Coast miners are now paying higher royalties following a failed resistance.
Three industry sources have confirmed that gold mining companies in the Ivory Coast are now paying an 8% royalty backdated to January after months of disputing its legality. The world's largest cocoa producer has replaced the previously linked 3%-6% contract rate with a flat 8%?rate. The miners refused to pay at first, claiming that it was illegal because their contracts protected them from fiscal changes. They then entered into negotiations with the government in order to get the new royalties scrapped. The three people who are familiar with the issue, but declined to be identified because they weren't authorised to talk to the media, claimed that companies have since begun paying. One executive said, "Everyone is now agreeing to pay. The question is if penalties apply." He added that companies were hurrying to settle in order to avoid fines. The Ivory Coast mines chamber, as well as its finance and mines ministries, did not respond immediately to comments. David Whittle, West Africa Chief Operating Officer at Fortuna Mining confirmed compliance. "We have made our 8% payments backdated to when they were introduced. He said: "We didn't think negotiations would go anywhere." Whittle stated that the gold price had taken care of it, referring its approximately 65% rise this year. Perseus Mining, Endeavour Mining, Fortuna, Allied Gold, and Montage Gold are some of the key mining companies operating in Ivory 'Coast. West African states are increasing fiscal pressure on miners as gold and commodity prices rise. This is straining relationships with operators who say the measures may curb investment. Guinea, Mali and Niger, all led by the military, are taking direct measures to extract concessions from operators. Other countries, like Ghana and Ivory Coast, have introduced new laws and levies in order to increase state revenue.
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Gold prices drop as investors prepare for the upcoming U.S. employment data
Investors grew cautious on Tuesday ahead of the key U.S. employment data that is due later in the day. This data will shed light on potential Federal Reserve interest rates cuts. As of 1102 GMT, spot gold fell 0.6%, to $4,277.20 an ounce. Bullion is up 64% for the year. U.S. Gold Futures fell 0.7% to $4,305.30. Gold is down today as investors profited ahead of the?key U.S. economic data that will determine Fed rate expectations for next year, said Lukman otunuga senior research analyst at FXTM. He added that the weakness below the psychological mark of $4,300 is keeping the bears in play. The combined employment reports for October and November are the focus of attention, but a number key details will not be available due to a lack?data collection after the longest U.S. Government shutdown ever. A survey of economists estimated that U.S. nonfarm employment would likely increase by 50,000 jobs in November, following a?decline expected in October. The unemployment rate, however, was estimated at 4.4%. Investors will also be looking at the Consumer Price Index and Personal Consumption Expenditures index for November, which are due this week, to get more clues about monetary policy in 2019. Bullion that does not yield is typically found in environments with lower rates. Silver spot fell 1.5%, to $62.98 an ounce after reaching a record high on Friday of $64.65. Otunuga said that "Silver is still influenced by the forces that are pushing gold up - profit-taking, and ETF withdrawals ahead of major US economic releases." The metal has risen 118% in value for the year. This is due to the tight physical market, macro-economic factors that support gold, industrial demand, and its inclusion on the U.S. Critical Minerals list. Palladium, on the other hand, dipped 0.2%, to $1.563.69 but remained near a 2-month high. The European Commission will likely reverse its ban on new combustion-engine vehicles in the EU from 2035. This move is "likely" to support internal combustion engines, which use palladium and platinum, said Nitesh Sha, commodities strategist at WisdomTree. He added that this year's gold-and-silver rally had also attracted investor attention to palladium and platinum. (Reporting and editing by Leroy Leo in Bengaluru, with Pablo Sinha reporting from Bengaluru)
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Shareholder rights could be weakened by the new Trump order that reins in proxy advisors
Corporate governance analysts and lawyers said that a new White House directive aimed at reining in proxy advisory firms is a major step in a Republican effort to weaken investors' role and give more power to CEOs. U.S.?President Donald Trump last week told the U.S. Securities and Exchange Commission and others agencies to increase oversight over proxy advisers Institutional?Shareholder?Services and?Glass, Lewis & Co, who help mutual fund companies and big institutional investors decide on how to vote in corporate elections. They are able to influence their clients because they hold important positions in Fortune 500 companies around the world. Trump's order said the proxy firms often use their power "to advance and prioritize radical politically-motivated agendas," including supporting environmental and social issues at the expense of shareholder returns. The directive is at the core of a debate which has divided U.S. shareholders and European investors: How much should climate change or diversity in the workforce factor into investment decisions? More than Money "This is more than just fiduciary duty." Sarah Wilson, CEO at British proxy adviser Minerva Analytics, said that this is a geopolitical "warfare" through the financial markets. She said that Minerva’s clients are primarily based in Europe and the United Kingdom. They want to maintain their Russell 3000 investments, but they worry about Trump’s?order, and similar actions taken by Republican-led state. Wilson explained that "our clients are not rabid socialists, but they do want to get good returns in the long run with a risk-adjusted return." Trump's order directs, among other things the SEC to "revise?or repeal all rules" relating to shareholder proposals. This has investor activists worried that one of their main tools to pressurize companies could be taken from them. Shareholders are often seen as being more accountable when they support proxy measures that call for limits on CEO compensation or voting for board directors. The agencies could reduce shareholder power if they follow Trump's orders. This would make it more difficult for investors to influence companies via proxy campaigns. Sanford Lewis, an attorney representing shareholder activists, stated that the order is based on premise issues such as diversity or the environment do not relate to financial performance. Lewis stated that the White House is "trying their view on investors". Take Politics Away U.S. trade groups have praised the order as it will remove politics from business decisions and protect profits. Charles Crain is the managing vice president of the National Association of Manufacturers and said that Trump's plans will protect against the firms' excessive influence. He also addressed issues such as what he called the "investment advisors' over-reliance" on these entities. Michael Littenberg of Ropes and Gray said that the order was part of a larger debate about?how investors can be protected while markets are robust. He said, "We're in the middle of what will likely be a once-in a generation governance recalibration." Unnamed White House officials said that the order was meant to increase investors' focus on maximising returns. "The only thing this executive order interferes with is the monopolistic ?practices of foreign-owned proxy advisors that seek to advance radical politically-motivated agendas," the official said. PUNCHING BAGS In 2020, Deutsche Boerse will buy the majority of Institutional Shareholder Services, a top proxy advisor. Glass Lewis is owned and operated by Canadian private equity firm Peloton capital, headed by Stephen Smith. Trump and his appointees began to reduce shareholder influence as soon as they took office. They have given boards greater control over annual meeting ballots, and put new filing requirements for index fund managers BlackRock or Vanguard, if management exerts pressure. Top CEOs such as Elon Musk, Jamie Dimon and other top executives have targeted proxy advisers. They also received support from pension fund and Democratic leaders. The firms took steps to reduce environmental shareholder resolutions in response to a larger backlash against their support for ESG investing. These shifts didn't spare them from ongoing scrutiny, even before Trump’s order. They also faced criticism from Republican-led states. Dan Crowley is a partner at the Washington law firm K&L Gates. He said that Trump's executive order has continued to reduce shareholder engagement. The order "perpetuates a fiction that investors are either concerned about ESG on the one hand, or about pecuniary return on the other. In reality, most large investors are concerned about ESG because of their potential impact on long-term risk-adjusted financial returns."
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Chinese court sentences 27 for antimony ingots smuggling
The Chinese court sentenced 27 people to jail and fined them for exporting antimony ingots without export licenses. This ruling demonstrates how China is tightening its controls on'strategic mineral'. China is the largest producer of antimony in the world. It is used for batteries, chips and flame retardants, as well as the defence industry. Beijing added antinomy in September 2024 to its export list. China announced last month that it had lifted a 'ban' on the export of antimony and gallium to the United States after a meeting between Presidents Xi Jinping & Donald Trump. However, the metals are still subject to a broader 'export control, which requires shippers to obtain a licence from Beijing. The Shenzhen Intermediate People's Court announced on WeChat that the main defendant Wang Wubin was sentenced to 12 years in prison, and fined $141,899. According to the statement, Wang conspired to smuggle antimony ingots out of the country by concealing, disguising and making false declarations without export licenses. Other 26 defendants face fines and prison terms ranging from four to five years depending on the volume of metal smuggled. In the case, Chinese customs seized 96 metric tons more of antimony than was smuggled, according to the court's statement. Hong Kong authorities announced in April that they had seized an antimony cargo. At the time, no arrests were announced. Exclusively reported in July, unusually large amounts of antimony had poured from Thailand and Mexico into the United States after China banned U.S. exports last year. Colleen Jones and Gareth Jones edited the Beijing newsroom by Colleen howe.
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Why does the Trump administration put pressure on Venezuelan?
Secretaries of State Marco Rubio, and Defense Pete Hegseth are holding closed briefings on Tuesday for all U.S. Senators and Representatives about the Trump Administration's Venezuela strategy. Many lawmakers are still unsure of President Donald Trump's goals, even three-and-a half months after more than 20 deadly U.S. attacks on boats near Venezuela and a massive military buildup in the Caribbean. Below, we'll take a look at a variety of issues that seem to be contributing to this pressure campaign. In October, the Trump administration told Congress that it was in an "armed conflict" against drug cartels. Maduro, who denies this, is a key player in the supply of illegal drugs to Americans. The administration has also designated Cartel de los Soles and Tren de Aragua as foreign terrorist organisations. In 2020, when Trump was still a first-term president, the U.S. Justice Department charged Maduro with narcoterrorism. Venezuela, according to U.S. statistics, is a transit country for cocaine bound for Europe or the U.S., and a haven of criminal groups who traffic drugs. However, it is not the source for fentanyl - the drug that is linked to the majority of U.S. fatal overdoses. TRUMP?MONROE DOCUMENTATION Trump released his National Security Strategy this month, arguing the U.S. must revive the Monroe Doctrine of the 19th century, which declared that the Western Hemisphere was Washington's influence zone. The strategy places the hemisphere as the number one priority of Trump's foreign policies, and uses U.S. influence to deny Beijing the access to resources like military installations and vital minerals. Maduro, who has been under U.S. strict sanctions, has signed energy and mining agreements with China as well as Iran and Russia. A pressure campaign that led to a more U.S. friendly government would boost American influence in the region. Maria Corina Machado - the Nobel Peace Prize-winning leader of Venezuela's opposition - said that she "absolutely supports" Trump's policy. Machado claimed that Trump has placed Venezuela at the top of his list for national security in the United States. She said, "We've been asking for this for years so it's finally here," on CBS's "Face the Nation". OIL Maduro said that Washington wanted Venezuela's oil. Venezuela currently sells its oil mainly to China. Venezuela has the largest oil reserves in the world. Analysts say that access to oil, which is a powerful bargaining chip when dealing with Trump who supports the fossil fuel industry, could be an important tool for Maduro. Several Western companies remain active in Venezuela, including Chevron, a U.S. company with a special licence. The country's industrial sector has lagged behind. Production is low compared to the size of the reserves. Venezuela has also been unable to attract investment or obtain the equipment and parts that it needs due to years of sanctions. Analysts predicted that Trump would be interested in Venezuela's oil reserve, but the bigger issue is the country with oil and other natural resources located in the hemisphere and closely aligned to U.S. competitors like China and Russia. "The idea that this country has?oil and minerals and rare earths, in our hemisphere, and that its main allies are China and Russia is something that doesn’t really fit Trump's world view," said David Smilde. A Venezuela expert at Tulane University. Rubio, Trump's Cuban-American Secretary of State, and other close allies have advocated tough measures against Cuban Communist government for years. They view Maduro and his government as essential to Cuban leaders Miguel Diaz-Canel, and they hope that a change in Venezuela will weaken Cuba. IMMIGRATION The Trump administration is moving to end the legal status for hundreds of thousands of Venezuelans in the United States. They are pursuing the "mass deportations" policy that propelled him to victory during his successful re-election campaign last year. According to Pew Research Center's analysis of U.S. Census Bureau statistics, the Venezuelan population in America grew from 95,000 people to 640,000 between 2000 and 2021. This was during a time when the South American nation faced political, economic, and social turmoil. Venezuelans would be less inclined to leave their homeland if the instability was reduced.
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Azerbaijan’s current account surplus for January-September falls to $3 billion
The central bank reported that Azerbaijan, a country heavily dependent on oil, saw its current-account surplus drop to $3.0 Billion, or 5.4% of gross domestic product (GDP), from $4.0 Billion in the same period last year. The bank stated that the fall in oil prices was the main reason for the decline in current account surplus. The oil and gas sector surplus decreased by 3.7% on an annual basis to $10.7 billion. Meanwhile, the non-oil & gas sector deficit increased by 7.5% to $7.7 Billion. The southern Caucasus' exports are largely based on oil and gas, which accounts for around 90% of the country's total revenue. Azerbaijan’s?foreign exchange turnover? declined to $30.8 billion from $31.5 billion one year ago in the first nine-month period of 2025. Exports dropped to $18.2 Billion from $19.3 Billion, while imports increased to $12.6 Billion from $12.3. The central bank's forecast for Azerbaijan’s current account surplus for 2026 has been reduced to $1.9 billion, from $3.7 billion that was expected at the end of this year. According to projections, based on an average oil price per barrel of $65 in 2026-2029 the surplus will decline to $1.56 billion by 2027, and $1.23 billion in 2028. The Shah Deniz Compression Project, which is the third phase in the development of Azerbaijan’s largest gasfield, will stabilize gas production and bring the surplus to $1.84 billion by 2029. (Reporting and editing by Hugh Lawson; Nailia Bagirova)
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Euro stocks drop as traders await US jobs data; dollar steady
Early trading Tuesday saw European stocks fall as traders remained cautious ahead of important U.S. employment data. The dollar also remained near its lowest level in the past two months. Investors waited for the U.S. Employment Reports for October and November due later in session. Data collection was delayed during the U.S. Government Shutdown. After the Fed's comments when it reduced rates last week were interpreted as being less hawkish that anticipated, this could affect expectations for the U.S. Federal Reserve monetary policy in the coming year. This would strengthen expectations for further rate cuts by 2026. The stock markets dropped during Asian trading. MSCI's broadest Asia-Pacific share index outside Japan fell to its lowest level in three weeks. Data showed that growth in China's manufacturing output stagnated to a low of 15 months in November. European indexes opened lower before slightly edging higher. STOXX 600, London's FTSE 100, and Germany's DAX were all down on the day at 0956 GMT. The progress in the Russia-Ukraine talks has contributed to a drop in European defence stocks. The pullback is still in context with stock markets reaching record highs by 2025. STOXX 600 is on track to gain 14.8% in 2025. The MSCI world index fell?by 0.3% for the day, but was up 19.8% over the course of the year. The U.S. jobs report is expected to show that federal cost-cutting has led to a decrease in nonfarm payrolls for October. This will be followed by an increase in job growth for November. "Either the economy accelerates or you get good numbers." You may not have a good number, and therefore expect the Federal Reserve to cut rates further," said Kevin Thozet. CENTRAL BANK METINGS, MORE DATA Investors will also be watching for U.S. Inflation data on Thursday. However, a few key details may not be available. Also, central bank meetings, including the rate decisions of the Bank of England?, the European Central Bank?, and the Bank of Japan. The U.S. Dollar Index was barely changed at 98.204. It fell by less than 0.1% for the day, and is close to multi-week highs against the euro or yen. The euro remained steady at $1.1754 after European PMI data revealed that the growth of business activity in the Euro zone was slower than expected by 2025. Lower energy prices have pushed the euro zone terms of trade (export relative to import prices) closer to the highest levels in the past four years. In a letter to clients, ING's global head of markets Chris Turner wrote: "This is a clean positive for the euro." The German 10-year bond yield was 2.8458, a slight decrease from the previous month. Data showed that the unemployment rate in Britain reached its highest level?since 2021, and the pay growth in Britain's private sector was at its lowest in five years. The UK's five-year and ten-year gilt yields rose after stronger-than-expected ?UK flash PMI data. Bitcoin was trading at $86,341.41, close to its two-week low from the previous session. Gold was near its highest level in seven weeks, boosted by the dollar's weakness and expectations of a rate cut from the United States. Oil prices dropped, falling below $60 per barrel for the very first time since months. Traders believed that a Russia-Ukraine deal was more likely. This raised expectations of sanctions being eased and more oil becoming available, which would lead to lower prices. (Reporting and editing by Sharon Singleton in Paris)
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Copper trades cautiously ahead of US data
Copper prices fell on Tuesday as traders remained cautious ahead of the U.S. employment data and year-end liquidity. The benchmark three-month 'copper price on the London Metal Exchange dropped 0.6% to?$11,592 per?metric ton at 0943 GMT. On Friday, it reached a new record high of $11,952 due to concerns about tight supply. Analysts at Sucden Financial say that with thin liquidity and no new fundamental direction, the price swings of base metals have become increasingly exaggerated. This leaves the complex vulnerable to sudden moves towards year-end. Metals used in construction and power are up 33% this year. This is the largest annual growth since 2009. The reason for this is several mine disruptions and a?outflow to U.S. stocks, as well as expectations of future demand from AI data centres and?energy transformation. Nitesh Nitesh, WisdomTree commodities analyst: "It is the supply-side issue that we see this year. We expect the surplus of this year to turn into a deficit in the market next year." He added that "demand may be muted at the moment, but the expectation is that copper will benefit from the electrification of the world." The Yangshan premium This week, the price of copper, which is a good indicator of Chinese demand for copper, has stabilised at $42, its highest level in two months. Aluminium, among other LME metals rose by 0.4%, to $2,876.50 per ton. LME daily data revealed that on-warrant aluminum stocks in LME registered warehouses dropped to 452,600 tonnes after a fresh cancellation of 32,025 metric tons in Malaysia. South32, an Australian company, said that it would take the Mozambique?Mozal aluminum smelter under maintenance and care by the end of March after failing to reach a power agreement with the government. LME lead rose 0.2% to $1944 from $1937.5, its lowest level since May. Zinc dropped 1.5% to $ 3,048.50. Both metals were delivered in large quantities to LME stock, mostly from Singapore. Nickel fell 0.2% to $14,310, after reaching a low of $14.235, which was the lowest in eight months, on Monday. Tin lost 0.6%, falling to $40,720. (Reporting and editing by Tasim Zaid; reporting by Polina Devitt)
Stocks struggle before jobs data, central bank meetings
Asian stocks fell on Tuesday while the dollar drifted to two-month lows. Investors adopted a cautious stance ahead of the release of several U.S. economic data including the jobs report that could 'help gauge the direction of Federal Reserve policy for next year.
Risk assets were under pressure due to the defensive mood, including bitcoin. Bitcoin, which?hit an all-time low of two weeks in the previous session, was down by 0.3%, at $86,017.67. Nasdaq Futures dropped 0.8%, and European Futures declined 0.5%.
Hang Seng's technology index fell 2.7%. The MSCI broadest Asia-Pacific share index outside Japan fell by 1.45%, its lowest level in three weeks.
Investors are watching the U.S. combined employment report for October and November due on Tuesday. They will also be looking at the inflation report, which is scheduled for Thursday. However, a few key details may not be available because the longest government shut down in history prevented data from being collected.
Investors don't wish to be caught in long-term, crowded trades, especially if rates rise. Charu Chanana is chief investment strategist for Saxo. She said that tech was the first domino.
The Fed cut interest rates last week as expected. They predicted that there would be a further rate cut in 2026, though the markets have already priced in two next year. This highlights the importance of the economic data for the near-term.
Chanana explained that if the data was mixed or slightly softer than expected, the soft-landing story would still be intact. However, it might not be a backdrop for a large risk-on rally.
The real risk is "a hawkish shock." If inflation or job growth is hotter, "yields will rise and risk assets in particular, long-term growth, will feel it first."
As the term of Fed Chair Jerome Powell ends in May, speculation has been rampant about a potential frontrunner. The expectation of a more dovish Fed chairman has also increased bets on rate cuts in 2019.
CENTRAL BANK BONANZA
This week, attention will be focused on the policy decisions of the Bank of England and the European Central Bank. The BoE will likely cut rates while the BOJ will likely hike. There is a general consensus that the ECB's rates won't change, but there are still questions about whether a rate increase for Europe is in the works next year.
The euro, in terms of currencies, was trading at $1.1751. It had reached its highest level since the beginning of October during the previous session. Sterling was slightly weaker, at $1.3368. The dollar index (which measures the U.S. currency against six other currencies) remained steady at 98.295, although it remained near its lowest level in almost two months.
The Japanese yen strengthened to 155.07 against the U.S. Dollar ahead of Friday's BOJ policy announcement. Markets have already priced in a rate increase, so all that remains is for 2026.
The market's reaction will be determined by the nuances in the BOJ's communications and if Governor Ueda is able to create a hawkish image without having to commit fully on the timing of a?further increase," said Gregor Hirt.
The BOJ may choose to emphasize data dependency and assess the effects before signalling clearer further moves. This could be interpreted by the markets as being cautious or dovish.
Oil prices dropped in commodities as investors weighed the potential impact of a peace agreement between Russia and Ukraine.
Brent crude futures dropped 0.54%, to $60.23 a barrel, while U.S. West Texas Intermediate crude fell 0.6%, to $56.48 a barrel. Both contracts fell more than 4% in the last week due to expectations of an oil surplus worldwide by 2026.
The gold price fell 0.6%, to $4,275.41 an ounce. This is below the highs of last week, which were around $8,275.41. (Reporting and editing by Shri Navaratnam in Singapore, Jacqueline Wong and Ankur Banerjee)
(source: Reuters)