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Mineral Resources of Australia has its worst day for 16 years due to production problems and higher costs
Mineral Resources shares (MinRes), the Australian mining company, plunged Wednesday to their lowest day in 16-years after it cut its fiscal production volume for 2025 and increased costs for its Onslow Iron Project in Pilbara because of weather disruptions. Shares of the company fell 22.1%, to A$23.75. This is their lowest level since late July 2020. It was also their largest single-day drop since October 10, 2008 Stock was the biggest loser in the benchmark ASX 200 Index, which fell 0.7%. The miner reduced its previous forecast of iron ore volume to 8.8-9.3 Mt for the financial year 2025, from an estimated 10.5-11.7Mt. The miner also increased its free-onboard costs or charges for transporting iron ore to $60/ton to $70/ton, up from $58/t to 68/t. "The cyclone Sean) dumped an unusual amount of rain in parts of the Pilbara, and the deluge grew days later when a low pressure system deposited more heavy rains inland. The weather caused flooding which damaged the Onslow Iron haulage road. Rio Tinto and other iron ore mining companies have been affected by the record rainfall in Western Australia's Pilbara region as well as tropical cyclones. MinRes announced late on Tuesday that its adjusted earnings before interests, taxes, depreciation, and amortization (EBITDA), which was A$302 millions ($192.13) still beat Visible Alpha's estimate of A$205. Jefferies analysts estimate that the company will spend A$2.1 billion on capital expenditures for the fiscal year 2025, an increase of A$340 millions from their previous estimates. The medium-term downside risks presented by (MinRes's), elevated debt, in an environment of declining iron ore, softer lithium, higher capital expenditure and lower lithium production, prevents us turning more positive." $1 = 1.5718 Australian Dollars (Reporting and editing by Sonia Cheema in Bengalur; Nikita Jino, Bengaluru)
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LME Copper eases Trump's tariffs on autos and semiconductors
London copper prices eased Wednesday, as concerns about metal demand were raised by President Donald Trump’s threat to impose a 25% tariff on semiconductor chips and automobiles. The price of three-month copper at the London Metal Exchange decreased by 0.6%, to $9.418 per metric ton as of 0423 GMT. Trump announced on Tuesday that he plans to impose auto import tariffs "in and around 25%" as well as similar duties on semiconductors. This is the latest of a series measures that threaten to disrupt international trade. He also said that sectoral tariffs for pharmaceuticals and semiconductors would start at "25%" or more, rising significantly over a period of one year. "Trump has actually considered implementing additional tariffs on automobiles... This could result in a slowdown of global growth and disruptions in the global supply chain. According to Kelvin Wong of OANDA, senior analyst for Asia Pacific, such disruptions may cause copper prices to fall in the future. Citi said Trump was more motivated to impose copper tariffs in his second term due to the metal's increasing importance for key emerging global competitive sectors like energy transformation and artificial intelligence. Trump's administration announced on Tuesday that it would hold further talks with Russia to end the war in Ukraine, after an initial meeting which excluded Kyiv. This is a departure from Washington’s previous approach, which rallied U.S. Allies to isolate Russian president Vladimir Putin. LME aluminium fell by 0.4% to $2.657 per ton. Zinc was unchanged at $2.884 while nickel dropped 0.3% to $15.310. Tin was down by 0.5% to 32,630, and lead was down 0.7% to 1,983. SHFE aluminium increased 0.2% at 20,665 Yuan ($2,837.39) per ton. SHFE copper rose 0.2% at 76,920 Yuan. Nickel fell 0.2% at 123,720 Yuan. Zinc eased by 0.1% to 23,875 yuan. Lead fell 1.2% to 16960 yuan. Tin lost 0.6%, 260,880. $1 = 7.2831 Chinese Yuan
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Seven bus passengers killed by gunmen in Southwest Pakistan
Officials said that seven passengers were killed by unknown armed men on a bus bound for Lahore in the Balochistan Province of southwest Pakistan late Tuesday. The attack occurred in Barkhan, an area of southwest Balochistan. The province, which borders Afghanistan and Iran, is one of Pakistan's key battlegrounds in its decades-long war against separatists insurgents who want more autonomy and a piece of the region's resources. A group of 40 armed men stopped buses and cars, checked national identification cards, and then shot seven passengers after forcing them off the bus, said deputy commissioner Waqar Kharshid Alam. Alam stated that all seven victims came from the central Punjab province. Khadim Hussain said that the killings occurred on the highway connecting Barkhan with the southern city Dera Ghaza Khan, in Punjab. The motive for the attacks was not clear. Officials said that the area was cordoned off, but that the attackers escaped. A bomb that targeted a coal mining vehicle on Friday killed or injured at least eleven people. Separatist militants launched a wave in August last year, resulting in the deaths of dozens. The attacks targeted police stations, civilians and infrastructure. One attack on a roadside left 23 people dead after militants opened fire and checked IDs. The Baloch Liberation Army, or BLA, took full responsibility for the operation. It called it "Haruf", which means "dark windsy storm". The BLA is one of the largest ethnic armed groups that are fighting the central government. Insurgent groups also target Chinese nationals in Balochistan. China is developing Gwadar, a deep-water seaport in the province. Beijing has made a significant investment in regional development as part of its $65 billion commitment to the Belt and Road Initiative's China-Pakistan Economic Corridor. (Reporting and writing by Saleem Ahmad; editing by Kate Mayberry; Ariba Sharif in Karachi)
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US SEC asks India for help in Adani Fraud Probe
A court filing on Tuesday revealed that the U.S. Securities and Exchange Commission had asked Indian authorities to assist in its investigation into Adani Group founder Gautam Adani and nephew, over an alleged $265 million bribery and securities fraud scheme. The regulator said to a New York District Court that it was trying to serve the complaint to both the founder, Sagar Adani and his nephew. It was also seeking assistance from India's Law Ministry to do this. Both are in India and neither is under U.S. custody. In a court filing, the SEC stated that it had requested assistance under the Hague Service Convention. Adani Group, and India's Law Ministry did not respond immediately to a comment request. Last week, Prime minister Narendra Modi told reporters that he had not discussed the Adani case during his Washington visit with U.S. president Donald Trump, and described it as an issue which leaders never discuss. India's Congress Party has demanded Adani's immediate arrest, and Modi is accused of favouring or shielding Adani in past deals. Modi's Party and Adani deny the allegations. Federal prosecutors in Brooklyn unveiled an indictment last year accusing Adani bribing Indian government officials to convince them that Adani Green Energy, a subsidiary from his Adani Group, produces electricity. It added that he then misled U.S. Investors by providing reassuring data about the company's anti graft practices. Adani Group called the allegations "baseless", and promised to pursue "all legal remedies". Adani Green announced in January that it had hired independent law firms to review U.S. charges. (Reporting and editing by Lisa Shumaker, Clarence Fernandez and Aditya Kalra)
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Amplus Energy Services Buys Altera’s FPSO Fresh Off Duty from Brazil
Floating production solutions specialist Amplus Energy Services has signed an agreement with Altera Infrastructure to acquire the Petrojarl I floating production storage and offloading (FPSO) unit, which recently completed its deployment at Petrobras’ Atlanta field offshore Brazil.The acquisition marks Amplus' initial vessel ownership, positioning the company to expand this strategy and meet growing market demands. Petrojarl I FPSO was most recently deployed at Petrobras’ Atlanta field. It has a production capacity of 30,000 barrels of oil per day and a storage capacity of 180,000, and was replaced by the larger FPSO unit named Atlanta.FPSO Petrojarl Enters Decom Phase as FPSO Atlanta Readies to Take OverFirst Oil Starts Flowing from FPSO Atlanta Off BrazilAccording to Amplus, Petrojarl I is available for swift deployment in early production system applications, extended well tests, and standalone marginal field developments.Additionally, the FPSO is said to be ideal for cost-efficient, lower-production operations and can support both early-phase and tail-phase production in regions such as Vietnam, Suriname, Brazil, and West Africa.Amplus noted that the FPSO requires minimal modification to be field-ready for specific customer needs.“This vessel is unquestionably the most flexible and most deployed FPSO in history - and Amplus now has the opportunity to apply our experience and approach to steward it safely and successfully for years to come.“The addition of this vessel strengthens our ability to meet growing market demands and ensure we are well-positioned to address client needs. "Furthermore, this acquisition has the potential to fast-track our journey to becoming a fully operational organization, complete with our own onshore support and offshore team. It also underscores our commitment to investing in the business and applying our considerable experience and expertise to deliver exceptional value to our clients,” said Steve Gardyne, Amplus’ Managing Director.“Petrojarl I was Altera’s very first FPSO and the industry’s first newbuild harsh environment FPSO achieving first oil in 1986. It has been operated by Altera on 11 fields for many years. We wish Amplus Energy and all who will serve on Petrojarl I in the years ahead much success and safe operations,” added Chris Brett, President of Altera Infrastructure Production.
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James Fisher Launches Japanese Business Unit
James Fisher and Sons, a global provider of specialist services to the energy, marine and defense industries, has launched new legal entity in Japan, reinforcing its long-term commitment to Japan and its footprint in North East Asia.The move furthers James Fisher’s intention to bring its integrated offering and solutions to Japan’s energy transition, maritime security and defense needs.The group already has a partnership covering the offshore wind service industry, including a Joint Collaboration Agreement with Tokyo Gas Engineering Solutions (TGES).With more than 200 employees across 12 locations in Asia Pacific region, and operations in over 25 countries worldwide, James Fisher can use both its regional and global expertise to support Japan’s industrial ambitions."Japan’s ambitious modernization plans are driving demand for advanced maritime technology, defense capabilities and renewable energy solutions.“With a target of 10 GW of offshore wind by 2030, a significant increase in defense spending to 2% of GDP by 2027, and around 99% of its foreign trade moving by sea, it is making substantial investments across these critical areas.“James Fisher’s expertise gives us a unique opportunity to support Japan’s evolving needs. Our long-term commitment to the Japanese market will grow in parallel with the country’s goals, ensuring we continue to contribute to its national strategy, while bringing a global perspective to complex challenges,” said Jean Vernet, CEO of James Fisher and Sons.
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Gold prices fall on speculation, but there are still hopes for peace talks between Russia and Ukraine
Investors are watching for peace talks, after U.S. president Donald Trump's administration has agreed to hold additional talks with Russia about ending the war in Ukraine. As of 0338 GMT spot gold fell 0.2%, to $2,928.52 per ounce. This is $14 less than its previous high of $2942.70, which was reached last week. U.S. Gold Futures fell 0.1% to $2.945.90. Gold's upside is limited as the first round of negotiations between the U.S., Russia and Ukraine over a potential peace agreement in Ukraine ended without a clear path. However, if they present a solid plan then it would be detrimental for gold, said Ajay Kedia at Mumbai-based Kedia Commodities. There should be a slight erosion of war premium. The upside is likely to be limited by $2,970, which could act as resistance, and $2,890, which would act as support. The Trump administration announced on Tuesday that it had agreed to continue talks with Russia about ending the conflict in Ukraine, after the first Russia-Ukraine talks ended without Kyiv and Europe present. Bullion has traditionally been used as a hedge against inflation and geopolitical uncertainty. Analysts at ANZ stated that the uncertainty created by Trump's presidency would likely prompt investors to diversify their investments into gold. They added that macroeconomic, geopolitical and trade risks, as well as fiscal and fiscal risks, could boost investment demand in gold. Bullion prices rose by over 1% during the last session due to concerns about economic growth. This was caused by uncertainty over Trump's tariff plans, which led to a safe-haven flow into bullion. The Federal Reserve's minutes of its January meeting, due later today, will provide clues as to the interest rate path for the U.S. Central Bank this year. Spot silver fell 0.9%, to $32.57 per ounce. Palladium and platinum both fell by 1.3%, to $974.32. Platinum was down 1.3% at $974.32.
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Aboriginal group claims $1.1 billion in iron ore from Western Australia
Court filings on Wednesday showed that an Aboriginal group was seeking A$1.8billion ($1.1billion) in compensation from Western Australia after the state allowed Fortescue Mining to mine iron ore for its own benefit without a land-use agreement. The Yindjibarndi Ngurra Aboriginal Corporation says that the Solomon mining hub's activities have damaged their land and people. The claim included A$1 billion in cultural damages and A$678 millions for economic losses, according to documents filed with the Federal Court of Australia. This case will be remembered not only because of the compensation sought, but also for any precedent that could lead to future claims for damages in the past. The YNAC has sued the state for authorizing the mining. The state will then likely try to recoup its losses by suing Fortescue - the fourth largest iron ore miner in the world. Fortescue accepted that the Yindjibarndi people were entitled to compensation. However, the parties disagreed on the amount. Western Australia's Premier and Justice Department did not respond immediately to comments. YNAC has declined to comment further. The court will hear arguments this week, but a final decision is not expected before the end of this year. Western Australia is home to around half the global seaborne supply of this steel-making component. Rio Tinto's destruction of culturally and historically significant Juukan Gorge Rock Shelters in the Pilbara Region, in 2020, sparked a global outcry. Its CEO and Chairman also resigned. According to experts quoted in the filings, the Solomon mine caused irreparable harm to the Yindjibarndi by destroying their culture and land. The report stated that the mine had damaged over 285 archaeological sites, including six Dreaming tracks or Creation Story Tracks, which are part of Australia's understanding about human settlement in arid areas around 40,000-45,000 ago. The report stated that "the significant harm to the country, people, and Dreamings continues." In 2017, the Yindjibarndi Group won exclusive native title over land that covered the Solomon mining hub. This vast, mineral-rich project began in 2012 and can produce up to 80 millions tonnes of iron ore per year. Native title in Australia is a legal doctrine that recognizes Indigenous rights over certain parcels. Andrew Forrest, founder of Fortescue, is among Australia's richest people. The miner made a net profit of $5.7 billion in the last financial year.
Stocks rise, yields drop as U.S. data and tariffs are assessed
The global stock index rose on Friday, while U.S. Treasury Yields fell. A round of weak U.S. economic data and the recent tariff announcements sparked hopes that the Federal Reserve could be more aggressive about cutting interest rates.
Commerce Department stated
retail sales dropped
After an upwardly-revised 0.7% increase in Decembre, 0.9% was the largest decrease since March 2023. This is well below the 0.1% decline estimated by economists polled, which suggests that rising prices and tariff uncertainties may have led consumers to reduce spending.
The Federal Reserve also reported that factory output was up.
output dipped
After a rebound of 0.5% in December that was downwardly reviewed, the 0.1% figure for last month fell short. A sharp decline in motor vehicle production weighed.
On Thursday, U.S. President Donald
Trump directed
His economic team was tasked with creating plans for reciprocal duties on all countries that tax U.S. imported goods, increasing the risk of global trade war. However, he did not impose another round of tariffs.
Investors keep an eye on the news coming out of the Munich Security Conference where U.S. Vice-President JD
Vance said
Washington could use economic and military leverage to achieve a successful peace agreement in Ukraine. However, his spokesperson later denied that he had made any threats towards Moscow. Vance will also meet Ukrainian President Volodymyr Zelenskiy on Friday.
The markets are hoping tariff headwinds will not be as severe as previously thought. However, the biggest element of this week's market sentiment is optimism about a possible Russia-Ukraine truce and how positive it could be for European growth.
Wall Street saw gains on U.S. stock markets, led by the energy sector, while consumer staples lagged behind. The benchmark S&P 500 Index climbed by about 0.1% to its intraday record of 6128.18, set on January 24,
The Dow Jones Industrial Average dropped 25.27 points or 0.06% to 44,685.58, while the S&P 500 gained 4.58 points or 0.07% to 6,119.65, and the Nasdaq Composite increased 24.98 points or 0.13% to 19,970.63. The three major U.S. indices are on course for a weekly increase.
According to CME, the expectation of a Federal Reserve cut of at least 25, basis points in June has risen to 51.4% after the markets had priced in a change by 40.3% in the previous session.
FedWatch Tool
MSCI's global stock index rose by 2.27 points or 0.26 percent to 884.64, after edging up to an intraday record 885.66. The index is on track to post its fourth weekly increase in five weeks.
The pan-European STOXX 600 fell by 0.29%, but it was still on course for its eighth consecutive week of gains. It has outperformed U.S. stock since the start of this year, though questions remain as to whether that can continue.
The dollar index (which measures the greenback in relation to a basket of currencies) fell by 0.43%, falling to 106.63. Meanwhile, the euro rose by 0.42%, reaching $1.0509.
The dollar fell 0.42% against the Japanese yen to 152.15, while the pound rose 0.37% at $1.2612 versus the greenback.
The yield on the benchmark 10-year U.S. notes dropped 6.4 basis points, to 4.461%. However, it was still on course for a gain of a week.
Oil prices
The market was on course to end a three-week decline streak, erasing previous gains.
U.S. crude dropped 0.38%, to $71.02 per barrel. Brent was down to $74.96 a barrel on the same day.
(source: Reuters)