Latest News
-
Colombia's Petro has threatened to change Glencore's contract regarding Israel coal exports
The Colombian president Gustavo Petro threatened on Tuesday to unilaterally change Glencore's contract with the government if it continued to export coal to Israel. However, the company claimed that the shipments had already stopped in accordance with a presidential order. Petro, who spoke at an event organized by the Community of Latin American and Caribbean States for CELAC on energy, said: "I'm willing to unilaterally alter the concession contract." The president warned that, if Glencore refused to comply with his order to suspend the shipment of coal from the mine, he would call on the local communities to blockade the mine. The company responded by saying that it had already complied with the order. "Cerrejon acted according to the decree issued by president Petro." Our last coal shipment was made two weeks before President Petro's decree took effect, the company said. Petro suspended Exports of fuel sources Israel's attack on the Gaza Strip. Israel's Foreign Ministry did not respond immediately to a comment request. The Cerrejon mine, which is located in Colombia’s northeastern La Guajira Province, is among the largest open-pit export coal mines in the world. The mine includes a 150-kilometer-long (93-mile-long) railway and a Caribbean Sea port. Cerrejon will reach 19 million metric tonnes in 2024. The company announced in March that it would reduce its annual production of thermal coal by 5 to 10 million tons because of low mineral prices. (Reporting and editing by Kym Madry; Julia Symmes Cobb, Nelson Bocanegra)
-
New Ghana mining legislation will shorten the licence period and boost community investment
Ghana will shorten the duration of mining licenses and require direct revenue sharing with local communities as part of its most comprehensive mining law reforms since nearly 20 years. Details were announced on Wednesday by a government ministry. The planned overhaul is part of a wider trend in West Africa where governments are rewriting their mining codes to maximize the value from rising commodities prices. Emmanuel Armah Kofi Buah, Minister of Lands and Natural Resources in Ghana, said that the changes - which include scrapping the automatic renewal for some licences – will only apply to future contracts. This is a departure from Mali and Burkina Faso, where military-led government have retroactively applied reforms. Buah, at a presentation held in Accra, the capital of Ghana, said, "In Ghana, there are no retroactive laws." Existing agreements will be respected and sanctified. After extensive stakeholder consultations, he said that the overhaul of Minerals and Mining Act and the mining policy had been completed to 85%. DEVELOPMENT REQUIREMENT Ghana, Africa's largest gold producer, is expecting production to increase to 5.1million ounces in this year. Newmont, Gold Fields, AngloGold Ashanti, Zijin, Asante Gold, Perseus, and Gold Fields are the major miners of Ghana. The country also exports manganese and bauxite, with plans to begin lithium production. According to the proposed changes in the law, prospecting licenses will no longer be granted indefinitely. The maximum period for mining leases, which is currently 30 years, would be reduced by a shorter time agreed upon between the government and companies. Companies that fail to meet their environmental, social and production obligations will lose the automatic renewal of their licence. The government is planning to eliminate development agreements in which companies pay money to the central authority. Companies will instead be required to sign agreements that commit a certain percentage of the gross mineral sales revenues to funding local development projects. The government is seeking to address the long-standing complaints from communities who feel they have received little benefit from mining operations. The reforms propose a three-tier regime for mineral rights, with a new category of medium-scale licenses to bridge the gap that exists between large multinational operators (such as mining companies) and small-scale artisans. A reduction or elimination of stability agreements is also being considered. These agreements currently provide large investors with up to 15-years of tax and regulatory protection. Future agreements will only cover capital recovery periods.
-
Saipem, an energy contractor, posts a 39% increase in its second-quarter core profits
Saipem, an Italian energy contractor, reported on Wednesday a 39% increase in its core earnings for the second quarter and confirmed its outlook for this year. The adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), between April and the end of June, were 413 million euro ($485 millions), beating an analyst consensus compiled by LSEG, which was 395 million euro. Saipem’s offshore, engineering and construction and business were the main drivers of growth during the second quarter. The group was able to finish orders from the first quarter. The amount of new contracts signed in this period was 2.2 billion Euros, compared to 4 billion Euros in the same period last year. These were mainly concentrated in its Energy Carriers division. These included activities related to the expansion of Eni’s biorefinery in Venice, as well as a project involving Eni’s carbon storage and capture facility at Liverpool Bay, Northern England. The Milan-based company, which announced in February a preliminary merger agreement with Subsea 7 of Norway, said that its net profit rose by 3% in the second quarter to 63 millions euros compared to the same period last year. ($1 = $0.8513 euros) Reporting by Francesca Landini Editing Keith Weir
-
Sources say that California has taken a rare step to find a buyer for the Valero refinery in order to prevent its closure.
Three sources familiar with this matter have confirmed that California officials are looking for a buyer to take over the Benicia refinery of Valero Energy, located near San Francisco. This is an unusual move, as the company plans to close the facility by April. California's 28 million drivers, who already pay some of the highest gasoline prices in the nation, are now concerned about protecting the fuel supply in their state. California's efforts to prevent the refinery from shutting down also mark a shift in government policy from recent years, which has focused on championing green initiatives and limiting fossil fuel use. This has led to a often tense relation between the state, and oil companies, such as the second largest refiner of the United States by capacity. Three sources, who spoke on the condition of anonymity in order to discuss private discussions, said that the California Energy Commission, the state's main energy and policy planning organization, has actively sought out buyers for the plant. The CEC refused to confirm whether or not it has directly engaged with buyers of the facility, but it acknowledged that it is working hard to ensure that the facility remains open. In an email, the agency stated that it was "engaging with market players" to explore ways of continuing the operation of refineries in the state. Valero did not reply to requests for comment on its earnings report, due out Thursday. Earlier this year, Valero announced its intention to cease operations by April 2026 at the 145,000-barrel-per-day San Francisco-area refinery amid worries about California's declining fuel supplies and high gasoline prices. San Antonio, Texas based refiner also You can also read about If it will continue to operate the remaining refineries in California including the 91.300-bpd Wilmington Plant near Los Angeles. Phillips 66 announced last October that it would shut down its Los Angeles area refinery due "market dynamics", and will begin winding down operations in October at the 139,000 bpd facility. Together, the two refineries produce 17% of California's gasoline. The closure of these refineries, along with other closures or refineries that have been converted to produce renewable fuels like Phillips 66 Rodeo last year, would leave California more dependent on expensive fuel imports. According to the industry association AAA, California's average regular gasoline price on Wednesday was $4.484 per quart, the highest nationwide. The average U.S. gasoline price is $3.155. According to studies by the University of California Davis, and the University of Southern California, refinery closures may push up the average price of gasoline from $6 per gallon to $8 per gallon. BUYER UNIVERSE Experts in the industry have warned that it could be difficult to reach an agreement by April, when Benicia is scheduled to close. Traditionally, a thorough sale process that includes ample time for bidders and their representatives to perform due diligence and negotiate a price acceptable takes place over a period of several months. Refinery sales can take up to six months even after an agreement has been reached. Skip York, Turner, Mason & Co.'s chief energy strategist, said that completing the project would require a very aggressive time frame. Sources claim that CEC has contacted HF Sinclair about Benicia. Two people with knowledge of the matter say that the refiner and fuel supplier was in negotiations with Valero about Benicia last summer, but the talks collapsed due to an environmental issue. HF Sinclair has not responded to any requests for comment. A source confirmed that the CEC had also reached out to parties who owned fuel-producing facilities in Europe. Multiple sources said that the strict environmental standards of the European Union would make it more appealing to operate in California. California's climate-first policy has caused a conflict between the state and American energy companies. They have accused California of creating tough business conditions, as well as driving up gas prices. California's green agenda has also caused tensions with the federal government. The U.S. president Donald Trump signed last month a congressional measure to block California's historic plan to stop the sale of gasoline only vehicles by 2035. California and ten other states have filed a lawsuit to challenge the repeal. California's Energy regulator recommended last month new rules that would encourage more private investments in fuel imports, and a suspension of refiner profit limitations in response to Governor Gavin Newsom’s call for reliable supplies of fuel and an attempt to save struggling refiners within the state. Newsom's Office declined to comment. Reporting by Nicole Jao in New York, David French in London and Shariq Kan in New York. Editing by Marguerita Chôy
-
Sources say that China's Zijin is leading the race to purchase Barrick's Tongon gold mine in Ivory Coast.
Two sources familiar with the matter said that China's Zijin Mining was the frontrunner for Barrick Mining to purchase the Tongon gold mine located in northern Ivory Coast. The deal could be worth up to $500m. Barrick, third-largest gold producer in the world, has shifted its focus to high-margin assets with long-term life, and is focusing more on copper, as well as strategic operations in Africa, and the Middle East. The company suspended operations at its Loulo-Gounkoto mining complex in Mali, after the military government of that country blocked exports, arrested staff and seized 3 tons of gold over a dispute about its new mining codes. Two sources confirmed that Barrick appointed TD Securities in Canada and Treadstone Resource Partnership in Australia to provide advice on the sale of Tongon, which Barrick claims will produce 148,000 ounces gold by 2024, worth $504 million at current prices. Barrick anticipates that the mine will enter care and maintainance by 2027, due to its declining resources. The Canadian miner said it would not comment on speculation in the market. TD Securities and Treadstone have not responded to requests for comments. Zijin is one of China's biggest gold and copper producers. It has recently acquired properties in South America and Central Asia. Tongon's interest comes after Chinese state owned enterprises invested more than 50 billion dollars in African mining projects in the last decade, with a focus on bauxite and copper. A mining executive said that Zijin was leading the bid for Tongon because of its financial strength. He added that the asset's value is around $300 million, and Zijin will likely offer much more than that to secure the asset, possibly up to $500,000,000. Second mining executive confirms Zijin’s lead, but says a local Ivorian firm, which he refused to name, is also in the running. Zijin, according to the executive, did not seem to be in favour of forming a joint venture to purchase the Tongon mine despite it being the preferred option for the Ivorian Government. Zijin has not responded to a comment request. Officials from the Ivory Coast Ministry of Mines stated that they didn't have the most recent information about the proposed sale and declined to comment on what the government wanted. The first executive stated that a final decision will be made on the winning bidder later this month. This is subject to regulatory approval. Deal could fall through, or be delayed. Barrick has reshaped its portfolio. It completed a $1 billion deal to sell its 50% stake in Alaska's Donlin Gold Project and agreed to divest the historic Hemlo Mine in Canada. This marks its exit from gold production in Canada. A military helicopter in Mali airlifted the gold from Loulo-Gounkoto earlier this month. This was just a few days after the court-appointed administrator had announced his plans to sell the bullion to fund the operation. Zijin purchased a 9.9% share in Canada's Montage Gold, which develops the Koney Gold Project in Ivory Coast. In October, Zijin paid $1 billion to Newmont for its Akyem Gold Mine. Barrick owns 89.7% of Tongon. The Ivorian government holds 10%, and local investors hold the remaining 0.3%. Maxwell Akalaare Adombila (Reporting) Additional reporting by Loucoumane Coulibaly; Polina Devitt & Amy Li, Editing by Veronica Brown and Kirby Donovan
-
Zimplats considers reopening a mine that has been closed due to price rebound
An official from Impala Platinum said that the Zimbabwean division is considering reopening an abandoned mine in 1998. This comes after platinum prices reached their highest levels in over a decade. Impala, a company listed in Australia and 87% owned Zimplats by Impala, acquired the Hartley Mine when it purchased assets that were previously owned by BHP. Impala board chairman ThandiOrleyn stated that the mine had been placed under care and maintenance because it failed to meet important production targets. This was revealed during the Wednesday commissioning of Zimplats' 35 megawatt solar power plant. Orleyn stated that "Zimplats conducts studies and trials in order to develop a safe, efficient and mechanised mining technique for reopening of the mine", without providing any further details regarding a timeframe or potential capacity. The price of platinum soared by 36% during the second quarter. This was due to a surge in Chinese imports, and a decrease in supply from South Africa, a major producer. Impala and its competitors have been forced to cut costs and suspend projects due to a two-year price slump. Impala delayed spending on its $1.8 billion capital project at Zimplats last year due to the low prices of metals used in catalysts which reduce toxic emissions from vehicles. However, the company has now completed several projects, including a first phase of a solar plant with 185 megawatts and an expanded smelter that were officially opened on Wednesday. Zimplats stated that it aimed to complete capital projects by 2031, including the rehabilitation and reopening of a base-metal refinery.
-
US Mobile Home Parks Weather Climate Change with Resident Ownership
Mobile homes communities are more resilient when they work together Extreme weather is more likely to affect parks California Mobile Home Parks in High-Risk Zones 37% Rachel Parsons Early July is when the forecast predicts that temperatures will regularly exceed 42 C throughout the summer. The mobile home is one of sixty manufactured homes that make up Comunidad Nuevo Lago. It's located eight miles south of Fresno, in the scorching Central Valley. Perez Sierra stated, "We want the space to be greener so that people can enjoy the area because mobile homes get very hot." Residents weren't allowed to plant shade trees until last year, when they formed a co-operative and purchased the land that their homes are on from a commercial property firm. Experts say that resident ownership could help low-income residents of mobile home parks (or MHPs) in the United States to strengthen their resilience against heat, flooding and other weather extremes caused by climate change. Residents can decide to make infrastructure improvements, such as erecting a storm shelter or planting trees to guard against these hazards, by joining a cooperative. Out of the 43,000 mobile homes parks in the United States, Comunidad Nuevo lago is among more than 300 communities that have joined forces to form a cooperative. Low-income residents can rent prefabricated housing at affordable rates, and for some it is their only opportunity to own a house. Mobile homes, as compared to traditional site-built homes, are more exposed to extreme weather hazards such as tornadoes and floods. This is largely due their location. In the west of the United States, heat and wildfires pose the greatest threat. C.J. said that manufactured housing in California is more prevalent in the hotter parts of the state as well as rural areas. Gabbe is a Santa Clara University professor whose research has been focused on mobile homes and extreme climate zones. He said that "those would be the places where we'd expect a higher wildfire risk in the future." Ovens in Summer According to U.S. Census figures, 22 million Americans live in manufactured housing, the majority of which is located in specially-built parks. Renters and homeowners of these homes have lower household incomes than the average. Research shows that in California, these households have an average head age of 63 compared to 51 for traditional housing. Gabbe said that older, low-income residents were more susceptible to the dangers associated with sizzling temperatures. Gabbe explained that the stigma of poverty led local governments to pass zoning laws prohibiting mobile homes from being placed in residential areas. "They were often allowed in places where they weren't seen or heard," he said. He said that 37% of California’s MHPs are in zones at high risk for wildfires or deadly heat. The roofs of many homes in Comunidad Nuevo lago are made from corrugated steel, which turns them into ovens during the summer. Gabbe stated that MHP residents spend more than double their average income on electricity because of the lack of insulation in these homes. Some neighbors of Perez Sierra are replacing their old homes to increase their climate resilience. Nicholas Salerno is the chief program officer of Resident Owned Communities (ROC USA), the nonprofit organization that assisted Comunidad Nuevo Lago in purchasing its land. Salerno, Texas has seen MHPs install storm shelters and adequate drainage systems in flood-prone areas in Texas under ROC's resident ownership model. Priorities of the Resident MHPs have traditionally been owned and operated as a result of individuals living on the site. This pattern has changed over the past 15 years as private equity firms have bought thousands of parks. These firms cut back on services to increase the value of real estate. They also raise site rental fees, which is the amount a homeowner has to pay for a small plot of land. Perez Sierra reported that the site rents at Comunidad Nuevo Lago nearly quadrupled after a commercial realty brokerage bought the park from its individual owners in 2019. The community now votes its priorities, guided by the five-member resident board. It intends to invest in more trees, and investigate options for solar power and a pool. Board President Jesus Felipe Sierra Lopez pointed out lead trees (guaje, in Spanish) that grew from the tiny gardens. He said: "Anytime you see a large tree like that you know there are people living in Oaxaca." Most of the community is based in southern Mexico and works in agriculture, mainly in the Central Valley. The Central Valley is covered in almond and grapevine groves. Lopez stated that the stability of ownership has given residents a greater sense of optimism, even when faced with climate change. Perez Sierra is a young person who works in a non-profit organisation. She represents the younger generation, which wants to remain in the park. Perez Sierra said that residents and guests gathered under mature trees to enjoy the shade. It's "Oh, you're still living in the trailer park," as if you hadn't moved.
-
LME copper reaches record high on COMEX
U.S. copper prices hit a Record high On Wednesday, as the date of the U.S. tariffs drew nearer, London's levels rose to their highest in more than two weeks due to a U.S. Japan trade agreement. U.S. Copper Futures rose 2.8% by 1450 GMT to $5.88 per lb after reaching a high of $5.93 before the start of tariffs on August 1, which will be imposed by U.S. president Donald Trump. COMEX copper is up 32% since Trump's investigation of copper tariffs in February. The benchmark three-month price of copper at the London Metal Exchange has remained unchanged at $9.918 per metric ton, after previously reaching its highest price since July 4, at $9.947. The COMEX premium over LME copper reached a new record of over $3,100 per ton. The global stock markets were lifted by the news that U.S. president Donald Trump had struck a deal with Japan. Investors in metals are focusing on a possible trade deal with China, the world's largest consumer of metals. This is ahead of an official meeting between U.S. officials and Chinese officials scheduled for Stockholm next week. The market was weighed down by concerns about an oversupply. Data showed that the copper market had a surplus in the first five month of the year of 272,000 metric tonnes. A surplus of inventory in the U.S., after traders took advantage the higher COMEX price, also weakened the market. Nitesh Sha, commodity strategist with WisdomTree, said: "We may see copper trading ranges once tariffs are implemented or even if they soften." The U.S. is going to use up its copper stockpile before importing any new units. Therefore, demand could be a bit low during that time of inventory depletion. Aluminium, the LME's worst-performing metal, dropped 0.5%, to $2,645.50 per ton. Robert Montefusco, broker at Sucden Financial, said in a webinar that producers were happy to do forward sales around these levels. Zinc rose by 0.2%, to $2865.50. Lead gained 0.7%, to $2025. Nickel added 0.1%, to $15540. Tin jumped 2.2%, to $34,655. Click here to see the top metals stories (Reporting and editing by Mark Potter, Ed Osmond, and Paul Simao).
GE Vernova increases annual forecasts following second-quarter profit beating
GE Vernova, a maker of power equipment, raised its forecast for current-year revenue as well as free cash flow after exceeding Wall Street expectations on Wednesday. Its shares rose more than 4% during premarket trading.
GE Vernova became independent after a three way split from General Electric last year. It raised its target for free cash flow to between $3 billion and 3.5 billion dollars, up to the earlier forecast of $2 billion to $2.5 million. They also expect 2025 revenues to be at the upper end of the range of $36 to $37 billion.
The company's forecast also includes the impact of the tariffs imposed by President Donald Trump, in the current form, on the lower range between $300 million and $400 million, plus the inflation that results.
The warning comes as the power industry braces for the impact that Trump's changing tariffs and policies will have on supply chains and costs, and threaten the future of offshore projects.
According to data compiled and released by LSEG the company posted an adjusted profit per share of $1.77, exceeding analysts' estimates of $1.51, thanks in part to a strong performance by its power and electricification units.
The U.S. Energy Information Administration predicts that power consumption in the United States will reach record levels in 2025 and in 2026. This is due to rapid expansions of AI and cryptocurrency datacenters, as well as an increase in demand from businesses and households.
The core profit of GE Vernova’s power segment (which provides steam and gasoline turbines) increased by 27%, to $778 millions, while its electrification unit posted $332 million in profits, which is more than twice what it was a year earlier.
The wind segment, which includes wind turbines, blades, and services, suffered a loss of $165m in the second quarter. This was due to higher service costs and tariffs at Offshore Wind. (Reporting and editing by Shinjini Ganuli and Pooja Deai in Bengaluru. Katha Kalia, Sumit Saha)
(source: Reuters)