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Sources say that Barrick has returned 3 tons of gold seized by Mali to Mali.
By Portia CROWE According to two people who are familiar with the situation, a Malian judge ordered that Barrick Mining's Loulo Gounkoto Complex return possession of the 3 metric tonnes of gold it seized almost a year earlier. A military helicopter seized the gold in January, after a Malian court ordered its confiscation. According to both sources, the gold has been at the BMS Bank in Bamako (the capital of Mali). The miner was responsible for transporting gold from the bank vaults. After two years of negotiation, the two sides reached an agreement to settle their dispute over Barrick's operation in?the West African nation. Barrick suspended operations at its gold mine complex in January due to a disagreement over the new mining code implemented by the military government. A Malian court appointed provisional administrator took control of the operation in June. One of the sources and a third individual said that Barrick had agreed to a $430 million settlement. All three sources claim that the provisional administration will return Barrick?control over the mining complex next week. A spokesperson for Barrick declined to make any comments, and a spokesperson from the Mali mines ministry didn't immediately respond to an inquiry for comment. As part of the deal, four Barrick employees who had been imprisoned since November 2024 have been released. Barrick has also dropped its international arbitration against Mali. Reporting by Portia?Crowe; Additional reporting and editing by Divya?Rajagopal
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Gold gains reach seven-week highs as silver scales new record high
The price of silver hit a new record on Friday, as gold prices rose more than 1% and hovered at a 7-week high. This was spurred by a weaker dollar and the Federal Reserve's interest rate reduction this week. By 1028 am, spot gold had risen 0.6% to $4.308,43 an ounce. ET (1528 GMT), and was on course for a weekly gain of 2.7% after previously rising by 1%. U.S. Gold Futures increased 1.5% to $4.376.60. Silver spot rose by 0.8%, to $63,03 per ounce. This is after it reached a new record high of $64.64/oz. The metal has gained nearly 6.9% in the past week. Jim Wyckoff is a senior analyst with Kitco Metals. He said that the strong price movement in silver has caused a similar move to happen in gold. He added that a weaker dollar and safe-haven demand due to geopolitical uncertainties are also bullish on precious metals. The U.S. Dollar?remains near its six-week-low, making gold priced in greenbacks more affordable to foreign buyers. The U.S. Federal Reserve announced this week its third and last quarter-point rate reduction this year. However, it signaled caution about further cuts until additional data is available. Investors have priced in two rate reductions next year and are waiting for the non-farm payrolls data to be released next week. This will provide further clues as to how the Fed intends to proceed. Gold that does not yield tends to perform well in an environment with low interest rates. Sources say that the U.S., after seizing an oil tanker this week, is now preparing to intercept other ships transporting Venezuelan crude, as Washington puts more pressure on Nicolas Maduro. Silver has gained 118% in value this year due to tighter inventories, sustained industrial demands and its inclusion on a U.S. Critical minerals list. "The price rise has become excessive and calls for caution. CMZ stated that the 'fundamental outlook of silver remains positive' in the long term due to the forecasted increase in industrial demand. Platinum reached its highest price since September 2011 with a 2.4% increase to $1,735.50. Palladium rose 0.5% to $1.491.25. Both metals were on track for a weekly increase.
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ERG increases Kazakhstan expenditure, sharpens its focus on core operations
Eurasian Resources Group's (ERG's) investment in Kazakhstan operations increased by?40% this year to almost $1 billion, as part of the strategic?focus? on core operations. Chief Executive Shukhrat?Ibragimov? explained. The Kazakh mining company based in Luxembourg produces large quantities of iron ore and aluminium, as well as ferrochrome, which Kazakhstan needs to support its efforts to modernise infrastructure and industry. The government of President Kassym Jomart Tokayev has committed billions of dollars in public and private investments on upgrading transport networks, digital service and industrial capacity. This is to reduce dependence on hydrocarbons, and attract foreign investment. ERG's production of high-carbon ferrochrome in Kazakhstan makes the company one of the largest producers in the world of stainless steel, which is widely used in industries like food and beverage processing. Ibragimov stated that ERG sold exploration undertakings to Saudi Arabia as part its realignment. He said this week that ERG had taken the strategic decision to concentrate in the first instance its core operations in Kazakhstan as well as Africa, where it has a long-standing presence. Ibragimov said that the company had decided to not distribute dividends in 2024. Instead, it would reinvest into its production facilities. Ibragimov, when asked about a purchase offer made by a U.S. Investor earlier this year, said: "We have no plans to sell our company, neither our assets in Kazakhstan or in Africa." The group is owned by the Ibragimov Family, the heirs to Alexander Machkevich and Patokh Chodiev, with the Kazakh Government holding a 40% stake. ERG operates in Africa, including in the Democratic Republic of Congo. (Reporting and editing by Tomaszjanowski; Pratima Dasai)
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Sources say that the Indian cabinet has approved the opening of the nuclear and insurance sectors.
Two government sources confirmed that the Indian cabinet approved major changes to the atomic energy laws and opened up the insurance industry to foreign investors. These are key policy decisions aimed at attracting millions of dollars to two vital sectors. India is relaxing its rules in order to eliminate a decades-old "state monopoly" and to remove a strict liability provision that prevents private participation. This will allow for foreign technology suppliers and also encourage private participation. India is aiming to reduce its coal dependence and meet climate goals by boosting nuclear power to 100 gigawatts in 2047. The?government is proposing to remove the cap on foreign ownership in the Indian insurance industry, which is currently 74%. A third government source said that to qualify for 100% foreign investment, the company's managing director, chief executive, or chairperson would all have to be Indian residents. Source: The source also said that the government had dropped its earlier proposal to create a unified license for insurance companies. A composite or 'unified' licence would have enabled insurers to offer life, health, and general insurance through a single entity. Life insurers are not allowed to sell health insurance products, while general insurers may only sell products from marine to?health. Source: The source stated that the government believed Indian insurance companies were not ready to be licensed under a composite license regime. The winter session of Parliament is currently slated to approve both changes. Reporting by Saritachaganti Singh and Nikunj Ahri. Shilpa jamkhandikar wrote the article. (Editing by YP. Rajesh, Mark Potter and YP.
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Draft shows that EU imports of aluminium and cement will face higher emission costs
Draft EU plans to tighten the carbon border tax could result in higher CO2 costs for imports of aluminum, cement, and other commodities next year. Carbon Border Adjustment Mechanism of the EU (CBAM), which will be implemented in January, will impose a fee on certain industrial products based on their emissions. This policy is intended to protect European producers from cheaper imports coming from countries that have less stringent climate regulations. The policy will expose imports of such products to a carbon tax equivalent to what EU companies pay already for their emissions on the carbon market. Brussels will calculate the costs based on a standardised benchmark of CO2 emissions intensity for each product. Lower benchmarks expose imports to higher prices. According to a draft proposal by the European Commission, Brussels intends to set the benchmark for unwrought aluminum at 1.423 grams of CO2 per ton metal. This is down from 1.464 grams in an earlier draft. The benchmark for grey cement clinker is now?0.666 (down from 0.693), while the benchmark for liquid ammonia fertilizer has been reduced to 0.457, as opposed to 0.471 in a previous draft. The second draft document of the Commission outlined the default emission values that the EU would use to calculate CBAM costs in the event that producers do not disclose their actual emissions. According to calculations based upon draft values and an EU Carbon Price of 80 euros/tonne, primary aluminium imported from Mozambique would be charged a CBAM of around 168 Euros/ton if default values were used. Charges of around 51 euros/ton would be applied to imports from India and United Arab Emirates. The current price of aluminium on the London Metal Exchange is about $2,900 per ton. A Commission official said that the EU anticipates adopting CBAM benchmarks by early 2026. Brussels will propose other changes to CBAM in the coming week, such as measures to prevent companies from circumventing CBAM and new products which will be subject to a fee. The EU hopes that this will encourage governments to improve their CO2 pricing policies. Since the EU announced their carbon border levy for?2021, many countries, including China and India, have started developing or expanding carbon pricing systems. Importers are more likely to be sensitive to any additional charges because steel is less expensive than aluminium. Hot-rolled coil costs around 620 euros per ton. Morgan Stanley analysts estimate that the CBAM costs?on hot-rolled coil will range between 80 euros per tonne for South Korea, to 174 euros in China, to 270 euros in India, and to more than 600 euros for Indonesia. Imports will initially only be charged CBAM charges on a small portion of their emissions as the EU slowly phases in this measure. Unnamed sources in the industry who were discussing the draft proposals said that the default values set by the EU are deliberately harsh to encourage companies into providing their own emission data.
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Wall Street futures drop as tech worries linger and dollar is on course for a third weekly decline
European stocks were up on Friday. They are on track to make a third consecutive weekly gain, as the Fed's recent interest rate cut boosted sentiment. However, Wall Street futures indicated some lingering caution following the previous session's sell-off in tech-stocks. Investors were wary of artificial intelligence bets after Oracle, a cloud computing company, announced massive spending and poor forecasts. Broadcom's warning on margins added to investors' concerns. The move on Thursday had a limited effect on the wider risk appetite, as both S&P 500 & Dow hit new highs. On Friday, Wall Street futures fell during Asian trading while struggling to gain during European trading. Federal Reserve officials in the U.S. cut interest rates on Wednesday by 25 basis points, in a split decision of 9-3. This has left traders hopeful about further cuts in 2026. At 1248 GMT the pan-European STOXX 600 index was up 0.2% for the day. It had reached its highest level in a whole month. The FTSE 100 rose?0.1%. Germany's DAX increased by 0.2%. France's CAC 40 gained 0.5%. The MSCI World Equity Index rose 0.2%. S&P futures are down 0.2% while Nasdaq Futures are down 0.6%. Ed?Hutchings is the head of Aviva Investors' developed market rates desk. He said that traders should avoid making major moves on Friday, as they prepare for the rate decisions of the Bank of England, European Central Bank, and Bank of Japan next week. He added, "It is a moment of reflection after the Fed." BoE will likely cut rates this Thursday. The ECB is expected to maintain rates, but traders are now speculating that it may hike them in 2026. After Governor Kazuo ueda's strong signals, the BoJ will likely hike rates. DOLLAR STEADY; POUND FALLS Slightly on UK Data The dollar index was up 0.2% for the day, at 98.527. It was still within striking distance of the session low, the lowest since nearly eight weeks. And it is on course for the third consecutive weekly decline. It has taken a hit from the Fed's less-hawkish-than-expected outlook on rates, as well as U.S. jobless claims data, which showed the number of ?Americans filing new applications for unemployment benefits increased by the most in nearly 4-1/2 years last week. The euro fell 0.2% to $1.1719, and sterling dropped 0.2% to $1.3362. Both currencies were down after the release of data that showed the UK economy contracted by 0.1% during the three months ending in December. The yields on German government bonds rose this week, setting themselves up for the biggest weekly increase since March. This was due to traders 'pricing in' a rise in rates in the euro zone following comments made by influential ECB policymaker Isabel Schnabel in earlier part of the week. The yield on the 10-year German government bond was 2.861%. OIL DROPS, COPPER REACHES RECORD HIGH Oil prices fell as traders fretted about an oversupply of oil and a potential peace agreement between Russia and Ukraine. Oil prices had been supported earlier in the session by concerns about disruptions in Venezuelan supply, as the U.S. prepared to intercept more ships carrying Venezuelan oil. Ukraine's government bond prices rose after it sent a revised proposal to the United States for ending its war with Russia. Investors are also watching the progress made by European Union proposals for using frozen Russian assets. Many of these are held in Brussels at Euroclear, a financial institution. Leaders of the “Coalition of the Willing” group of nations discussed the progress of the plan during a virtual conference on Thursday. The Russian central bank declared the plan illegal on Friday. After China, the world's largest copper consumer, pledged to continue a fiscal policy that is "proactive", copper reached a new record high. The dollar's weakness helped gold reach its highest level in seven weeks. (Reporting and editing by Topra Chopra, Andrew Heavens, and Elizabeth Howcroft)
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Dutch report calls on $176 billion in tech spending and jobless benefits cuts
The Netherlands should sharply increase technology ?investment and shake up its labour market to safeguard ?the EU ?country's long-term prosperity, a government-commissioned report said. Peter Wennink, former CEO of ASML, made recommendations Friday on how to boost the productivity growth that has been stagnant. These recommendations echo those in Draghi's report on competitiveness for 2024. Draghi has called for the spending of 150 billion euros (176 billion dollars) over the next decade to attract investment into projects ranging from AI data centres, drones, and small modular nuclear reactors. It is expected that the report of Wennink, in which he described 2023 as "fat, stupid and happy" for the Netherlands, will influence current coalition discussions on forming a Dutch government. Rob Jetten, the D-66 'party centrist, who won the election and is now in a position to become Dutch 'prime minister told ANP he wanted to "grab this report with both hand". Wennink was asked to be a government advisor in part due to his "reputation of bluntness". According to his report, achieving economic growth greater than the current forecast of 0.5% has become impossible as low-productivity work?at?staffing agencies and slaughterhouses" is a growing part of the economy. Shell and Unilever, among others, have moved their operations outside the Netherlands due to a hostile business climate. Wennink's proposal includes paying farmers to shut down?dairy farm to resolve a long-running dispute about nitrogen emissions, which is hampering construction. This issue affects the?ASML. He said that the country should still welcome skilled migrants despite its anti-immigrant sentiment. Companies should have greater freedom in firing workers and unemployment benefits paid should be reduced to just one year, instead of two. ($1 = 0.8531 euro) (Reporting and editing by Toby Sterling)
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Silver reaches a new peak; gold reaches a seven-week high
Gold prices rose by?1% on Friday to a seven week high, helped by a weak dollar, expectations of interest rate reductions and a safe haven demand due to geopolitical turmoil. Silver also hit a new record high. Spot gold climbed 1% by 1248 GMT to $4,327.31 an ounce, its highest since October 21. It was also set for a weekly gain of 3.1%. U.S. Gold Futures rose 1.2% to $4363.20. Dollar hovered at a 2-month low and was on course for a third consecutive weekly decline, making gold more affordable for foreign buyers. Zain Vawda is an analyst at MarketPulse, by OANDA. He said that the sharp increase in U.S. Weekly Jobless Claims and U.S. Venezuela tensions support gold prices. Last week, the number of U.S. unemployment claims increased by the highest amount in almost 4-1/2 years. This reversed the sharp decline seen the previous week. On Wednesday, the U.S. Federal Reserve cut rates by 25 basis point for "the third time in this year", but expressed caution about further cuts. Investors currently price in two rate reductions next year. Next week's U.S. Non-Farm Payrolls Report could give further clues as to the Fed's policy direction. Gold and other non-yielding investments tend to do well in a low-interest rate environment. Following the seizure this week of a Venezuelan oil tanker, the U.S. prepares to intercept additional?ships carrying Venezuelan crude. In India, gold prices dropped this week despite a sluggish wedding season. Meanwhile, in China, high spot prices drained demand. Spot silver is up 0.8% at $64.09/oz after hitting a record high of $64.56/oz. It's on track to have a 10% gain in a week. Prices have doubled in the past year due to a strong industrial demand and dwindling stocks. The critical minerals list. Silver is being supported by industrial demand, amid fears of shortages and a tightening market. Retail investors have also been speculating, which has driven inflows into Silver ETFs. Palladium rose 2.6%, to $1,523,10, and platinum gained 3.2%, at $1,750.35. Both metals were on track for a weekly increase. (Reporting and editing by Harikrishnan Nair in Bengaluru, Sahal Muhammed, and Pablo Sinha)
Warren Buffett's PacifiCorp utility singed by wildfires
Two years earlier, Warren Buffett branded Berkshire Hathaway's energy service among his corporation's 4 giants. Now he fears its company design might be broken.
Berkshire Hathaway Energy's PacifiCorp system faces billions of dollars in possible liabilities from wildfires that have blistered numerous thousands of acres in southern Oregon and northern California.
Expenses could rise as more fires break out, and from efforts to prevent them. Climate modification, reflected in drier and hotter weather and more combustible plants, adds to the dangers.
I did not prepare for and even think about the adverse developments in regulative returns, Buffett wrote in his yearly shareholder letter in February. I made an expensive mistake in not doing so.
What remains uncertain is the extent PacifiCorp's issues drag on the conglomerate's overall outcomes, with Berkshire's. deep balance sheet and dozens of other operations being not able. to completely combat.
Buffett, 93, and his designated follower Greg Abel, 61, may. face investor concerns at Berkshire's May 4 annual conference. in Omaha, Nebraska, about their concerns for the energy business.
Wildfires make (the energies) fire insurer on. top of being energies, stated Steven Inspect, who oversees $1.9. billion at Check Capital management, consisting of $600 million in. Berkshire stock and choices. It is a material modification. Warren. Buffett did not see this coming at all.
INTENSIFYING CLAIMS
Berkshire Hathaway Energy serves about 5.3 million electrical. and gas customers through PacifiCorp, MidAmerican Energy and NV. Energy in 11 western and Midwestern states, and millions more in. England and Alberta, Canada.
It owns 36,400 miles (58,580 km) of electrical transmission. lines, and runs 21,000 miles of pipelines.
For many years, Berkshire Hathaway Energy - which is 92%. owned by Berkshire Hathaway - had actually been a constant revenues engine. for its parent, generally producing 10% to 12% of overall. running profit.
That was up to simply 6% in 2023, as the business's profit slid. 40% to $2.33 billion.
PacifiCorp was a big reason. Jurors have actually found the Portland,. Oregon-based utility responsible in several verdicts over wildfires. from 2020, blaming losses on its power lines. PacifiCorp has. rejected negligence.
However it ended 2023 with $2.4 billion of predicted wildfire. losses, and has actually said losses might grow to $8 billion.
Today, a group of 1,000 fire victims said PacifiCorp. should pay them $30 billion.
One result: PacifiCorp will pay no dividends to Berkshire. Hathaway Energy for a number of years, which might impact the. parent's ability to fund operations.
It's crucial for energies to recover costs and preserve a. strong financial profile so they can guarantee dependability for. customers, said Travis Miller, a Morningstar stock expert.
Utilities can reduce the threat of wildfires by insulating. wires to minimize the hazard of triggers, cutting or lowering. trees that could call power equipment, burying transmission. lines underground, and briefly turning off power.
However mitigation can be pricey, and Buffett vowed that. Berkshire will not knowingly toss great money after bad.
Toby Shea, senior credit officer at Moody's Investors. Service, explained: He's saying, look, if we essentially have to. pay billions and billions of dollars whenever there is a. big fire, this is not a practical design.
BLAME THE LAWYERS
This is not the first time Berkshire has actually experienced huge. headwinds in a significant business.
Berkshire invested years tidying up poor underwriting at. General Re after paying $16 billion for the reinsurer in 1998.
It also paid too much for Accuracy Castparts, which cost $32.1. billion in 2016, just to see its aircraft parts organization. collapse throughout the pandemic.
Lawsuits including PacifiCorp could drag out for several years,. and the supreme cost and timing of payments are uncertain.
In his investor letter, Buffett cautioned that a. confiscatory resolution might befall PacifiCorp, however that. Berkshire and Berkshire Hathaway Energy were structured to. endure it.
Though analysts do not anticipate a personal bankruptcy, Berkshire. could decide it may not be worth purchasing generating and. transmission possessions if it were forced to foot several years of. big legal bills.
Our assumption is that if damages at PacifiCorp become. unsustainable long term, the business's support toward PacifiCorp. could be limited, S&P Global expert Sloan Millman said.
Berkshire Hathaway Energy decreased to comment for this. article.
PacifiCorp said the $30 billion claim reveals the requirement for. legal reform, with its capability to serve clients threatened by. excessive wildfire damages pursued by plaintiffs' lawyers who. have a significant financial stake in these results.
Some states are resolving utilities' danger of personal bankruptcy. from wildfires.
In 2019, California legislators produced a. multibillion-dollar wildfire fund that utilities could tap to. pay for damages brought on by their equipment.
And in March 2024, Utah lawmakers permitted big energies to. collect additional charges from customers to establish wildfire funds,. and capped liability on some claims.
PacifiCorp could benefit if Oregon took comparable actions. For now, Berkshire's size uses protection from huge losses.
Paul Lountzis, president of Lountzis Asset Management in. Wyomissing, Pennsylvania, which invests 11% of its possessions in. Berkshire stock, said diversification really, truly helps. It's not like Berkshire is one particular energy.
(source: Reuters)