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Miners in Indonesia are looking to farming as an alternative to the poisoned gold mines of Indonesia
Illegal gold mining in Indonesia is a threat to human life and the environment Indigenous villagers are encouraged to return traditional farming Megadiverse Indonesia accounts for 3% of the global gold output By Leo Galuh Illegal gold mining has left a scar on the mountainous region. Workers risk their lives by digging deep into caves and hillsides. Tempted to mine gold from the traces left by a state-run Aneka Tambang Mine (ANTAM), villagers are now engaging in small-scale, illegal mining. This has led to deforestation, and toxic chemicals such as mercury and cyanide have been used, which pollutes water and kills wildlife. Critics and environmentalists called for more strict measures to end the practice, and to encourage a return of traditional and less destructive lifestyles like farming. The recent crackdown by the police and other signs of change such as several former miners switching to farming have given rise to hope that this could be a turning point. Sukmadi Rukmana is a local agricultural officer who helps miners to transition from traditional livelihoods. He warned that uncontrolled mining could increase the risk for deadly landslides. Rukmana said, "The green vegetation surrounding the mountains has been stripped away leaving rainwater to flow downhill without a natural buffer." Supriadi was compelled to abandon mining after such threats. "I would rather stay in small-scale agriculture like this, than return to mines." "I'm afraid of being buried, particularly during the rainy seasons," he said. Citorek Kidul is a town of 1,800 people located 130 km (81 mi) south of Jakarta, on the ancestral land of the Kasepuhan Kidul traditional community. Residents are digging for gold and leaving deep tunnels and pits that can't be repaired. This threatens the culture of protecting sacred forests and rice harvests. According to U.S. Geological Survey statistics, Indonesia, which is one of the megadiverse nations with large rainforests, accounts for about 3% global gold production, along with South Africa and Peru. ANTAM mined gold in Citorek kidul in the 1980s. The site was abandoned shortly after operations ceased. After ANTAM's withdrawal, villagers were pushed by economic hardships and a lack state oversight to revisit the drilling sites using artisanal techniques without formal monitoring or reclamation. As word spread, illegal mining increased. According to local media reports, Banten Regional Police detained 10 suspects in February for mining gold without a permit. This can result in five years of imprisonment and a fine as high as 100 billion Indonesian Rupiah (about $6 million). Local authorities are challenged to encourage less destructive methods of earning money, such as sustainable agriculture. Jajang Kurniawan is the head of Banten Kidul Regional Indigenous Council. He said that Citorek villagers have relied for centuries on inland fishing for carp, as well as farming with rice and other types of crops. He said that the region had no mining tradition, as it was only large mining companies such as ANTAM who began mining in the area. The Indigenous Council also never set clear mining rules. "It has been happening for a while, and the people won't accept an outright ban." Kurniawan stated that if we tried to enforce a ban, we would end up in conflict with our own people. He said that "customary leaders have recommended against mining but this is only a suggestion." According to a study published in Media Ekonomi in 2022, mining is associated with the destruction of forests, the erosion of waterways, and the degradation of soil. Digging Deep Sumantri, a stone carver from India, chisels in depths up to 150 metres (492 feet) without wearing protective gear. He is searching for gold-bearing rocks. He said, "It is dangerous down there. It's prone to collapsing." "We brought in timber to brace up the walls." He earns only 100,000 Indonesian Rupiah per day. Supriadi said that he led a team of 15 people who used to dig and chisel rocks, carry sacks weighing over 50 kg (110 pounds) and use dynamite in caves up to 100 meters (328 feet) deep. Miners who work in deep shafts rely on air hoses made of plastic that are connected to generators powered by fuel above ground. The air is dense and oppressive. He said that many of his friends had developed lung and tuberculosis problems, probably due to the dust they inhaled while chiseling or the air from the machines. RETURNING to the Fields Plantations for palm oil, commercial crops, and other commercial crops are being built in many parts of Indonesia. Communities could practice small-scale farming that respects forest areas and natural cycles if they are guided by their customary laws. Rezki Syahrir is the CEO of Indonesian Initiative for Sustainable Mining, an independent nongovernmental organization. He said that diversification of the economy into other areas such as agriculture, plantations, or inland fishing was needed. Rice is considered sacred in local culture and therefore cannot be sold or bought. They still need money for their children to go to school and to pay electricity. You can't pay your electricity bill with a bag of rice can you? Rukmana said. He said that 10 illegal miners have recently switched to traditional farming and could produce an excess of vegetables for the local economy. Supriadi says he's been able earn a steady - and safer-income since he quit mining in 2016. He runs a motorcycle shop. Gold mining is a demanding job. Your body will be pushed to its limit. He said, "It just drains you."
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China still stores crude oil despite refinery run-up: Russell
China's refiners increased their processing rates in the month of July. However, strong crude oil imports from abroad and domestic production meant that there was still an excess of over half a million barrels a day (bpd). Calculations based on data from the official sources show that crude oil surplus in July dropped to 530,000 barrels per day (bpd) from 1.42million bpd. The key is that despite the drop in oil surplus, refiners will likely continue to add to their stockpiles. This will allow them the ability to reduce imports if prices increase to levels they feel are not justified. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made by subtracting the amount processed from the total crude available through imports and domestic production. Refiners in July processed 14.85 millions bpd crude, an increase of 8.9% over the same period last year. However, this was a decrease of 2% compared to June, which had been the highest month since September 2023. According to data released by the government on August 15, the utilisation rate increased to 71.84%, an increase of 1.02 percentages points from June, and 3.56 percentages points from July 2024. In July, China's crude imports were 11.11 million barrels per day (bpd), while its domestic production was only 4.27 million. The refiners had a total of 15,38 million bpd available. Subtracting the 14,85 million bpd processed, leaves an excess of 530,000. The surplus crude in China for the first seven month of the year was 980,000 bpd. This is mainly due to the fact that crude imports, domestic production and refinery processing increased at a higher rate from March. Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data. Even if you ignore the gaps in official data, there is no doubt that since March China has imported crude oil at a rate far greater than what it requires to meet its own domestic fuel needs. CRUDE IMPORTS The market will be looking to see if the recent strength of crude imports is going to continue or if it will decrease in the coming months, as refiners begin using more oil from their stocks. Prices are the key. China's refiners tend to increase imports when prices seem reasonable but reduce them when prices have increased too much or too fast. The rise in crude imports since March coincided with the decline in prices. Brent crude, the global benchmark, fell from an all-time high of $82.63 per barrel on January 15, to a low of just $58.50 a barrel by May 5. Brent crude oil prices have been volatile since then. The conflict between Israel, Iran and the United States - later joined by other countries - sent Brent to an all time high of $81.40 per barrel on June 23. Prices then dropped to $65.57 a barrel in the early Asian trading on Monday. China may reduce imports of cargoes due to arrive in late August or early September because the prices have risen from their low in May to the high in June. This is the period when they were planned. China may buy less cargo if Saudi Arabia, the world's largest exporter, increases its official selling price for August- and September loading cargoes. Imports of crude oil may be held up in the coming months if refinery rates continue to increase and Chinese refiners keep up their recent trend of selling more fuels, such as gasoline and diesel. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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European stocks fall as traders look to Jackson Hole for Ukraine talks
Investors turned their attention to Washington, where Volodymyr Zelenskiy of Ukraine and European leaders are meeting Donald Trump. The pan-European STOXX 600 Index was down by about 0.2% on Friday after reaching its highest level since last March. Meanwhile, the MSCI All Country World Index was hovering near the record high reached last week. In the Asian session earlier, indexes in Japan, Taiwan, and China reached record highs, while an indicator of Chinese stocks hit its highest level for a decade. After Trump's Friday summit with Russian president Vladimir Putin, investors were preparing for the meeting between U.S. Presiden Trump and Ukrainian President Zelenskiy as well as European leaders to discuss next steps in ending the war in Ukraine. Trump appeared to be more in line with Moscow after the summit, even though there was no agreement. Instead of first seeking a ceasefire with Ukraine, Trump wanted a peace deal that included all aspects. After the Russia-U.S. discussions on Friday, Lars Skovgaard said, "It's going to be a quiet start to the new week." Skovgaard said that, whether or not an agreement is reached, the focus is already shifting to the Kansas City Federal Reserve’s August 21-23 Jackson Hole Symposium, where Jerome Powell will speak about the economic outlook and central bank’s policy framework. The markets are pricing in a quarter point rate cut on the 17th of September. They also expect a further reduction by December. Mark Matthews is the head of Asia research at Bank Julius Baer, Singapore. He said that he saw three rate cuts this year in the U.S., a slower GDP but no recession. The combination of these two factors should allow the rally continue. Stock markets have been buoyed by the prospect of lower borrowing rates globally. Japan's Nikkei has reached a new record high. MSCI's broadest Asia-Pacific share index outside Japan gained 0.1% after reaching a record high of four years last week. In Europe, the DAX in Germany fell by 0.3%. The FTSE in Britain was down by 0.1%. Solid Earnings S&P 500 futures and Nasdaq's futures both fell 0.1%, but they were still near their all-time highs. The valuations have been supported by a strong earnings season, as S&P 500 EPS grew 11 % on the year. 58% of companies also raised their guidance for the full year. Goldman Sachs analysts said that the results of mega-cap technology companies have been exceptional. While Nvidia is yet to release its earnings, Magnificent Seven grew their EPS in 2Q by 26%, year-over-year, which was a 12% improvement over the consensus expectations going into earnings season. Home Depot, Target Lowe's, Walmart and Lowe's all report this week. The possibility of Fed easing keeps short-term Treasury rates down, while the longer end of the curve is under pressure from the threat of stagflation, and huge budget deficits. This has led to the steepest curve in the yield market since 2021. The prospect of higher borrowing for increased defence spending has also pushed German and French long term yields to the highest levels since 2011. The dollar has been impacted by bets that the Fed will ease further. It dropped 0.4% last week against a basket currency to end at 97.858. The dollar rose 0.2% against the yen to 147.42 while the euro fell to $1.1682 from 0.5% the previous week. Gold, the most important commodity, rose 0.4%, to $3,349 per ounce, after falling 1.9% in the previous week. The price of oil rose as White House Trade Advisor Peter Navarro stated that India's purchases were funding Russia's conflict in Ukraine. This had to cease, and Trump backed off his threats to impose more restrictions on Russian exports. Brent crude was up 0.4% to $66.08 per barrel while U.S. crude gained 0.5% to $63.11 a barrel.
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Barter has returned to Russia, as a Chinese company attempts to resolve settlement issues
Bartering is returning to Russia for the first since the chaos in the 1990s. Settlement problems caused by the conflict in Ukraine forced one Chinese company, at least, to exchange engines for steel and aluminum alloys. The economic and political chaos that followed the collapse of the Soviet Union in 1991, was a result of spiraling inflation and chronic funding shortages. This forced businesses across the country to accept payment in kind. The barter system, however, caused even more economic chaos as a vast network of contingent deals was set up to buy everything from flour and sugar to electricity and oil. This made it even harder to calculate prices and earned some people fortunes. Barter has returned to Russia after more than three years of the Ukraine War. The Kazan Expo Business Forum on Monday saw Chinese companies cite settlement issues and Russian requests that they move production to Russia as the major obstacles to the development of bilateral business. Through a translator, Xu Xinjing, from Hainan Longpan Oilfield Technology Co., Ltd, told the forum that "we offer innovative cooperation models aimed to reduce settlement risks." He added that "we also offer a barter trade model." His company is interested in receiving Russian shipbuilding material as a trade for its power equipment. "Under the present conditions of limited payment, this creates new opportunities for businesses in Russia and Asian nations, the Asian Region. He said that we could, for example, supply marine engines to Russia in exchange for steel or aluminum alloys used for shipbuilding. Sources told reporters at the time that Russia and China discussed barter deals last year. Industrial sources say bartering is popular with metals and agricultural goods, which are relatively simple to price. China is Russia's largest trading partner, as European countries have cut many of their links with Moscow because of the conflict in Ukraine. The Kremlin refers to this conflict as a "special operation". Russian banks and companies are facing a growing problem with delays in payment for trade with Russia’s main partners, such as China and Turkey. Western regulators have been putting pressure on banks to examine transactions with Russia. (Reporting and writing by Guy Faulconbridge, editing by Giles Elgood).
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Tokyo Steel maintains product prices in September
Tokyo Steel Manufacturing, Japan's largest electric-arc furnace producer, said it would leave the prices of its steel products unchanged in September. This will help to bring the market back up after a period when demand was weak. This is the fourth month in a row that steel products have not seen a change in price, including its H-shaped beams. Prices for steel bars and rebar will remain unchanged at 85,000 yen (US$577) per metric ton in September. H-shaped beams, however, will be priced at 112,000 ($760) per ton. The company reported that domestically, steel activity in construction remains low due to a persistent shortage of labour and limited working hours. Meanwhile, steel shipments remain slow for the manufacturing sector as the market evaluates the impact U.S. Tariffs. Although U.S. trade negotiations with other countries are moving forward, the steel industry remains cautious because no agreement has been reached with China. In a recent statement, the company stated that political instability, regional conflict, and protectionist policies are all contributing to the uncertainty on the steel market. Tokyo Steel's pricing has been closely monitored by Asian competitors such as South Korea’s Posco, Hyundai Steel and China’s Baoshan Iron & Steel Co Ltd.
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Copper prices are affected by a stronger dollar ahead of geopolitical events
The copper price fell on Monday, due to the stronger dollar. There was also uncertainty about a key event that will affect U.S. interest rate forecasts and a meeting of U.S. president Donald Trump with his Ukrainian counterpart Volodymyr Zelenskiy. By 1002 GMT, the price of three-month copper at the London Metal Exchange had fallen by 0.3% to $9.742.50 per metric ton. EwaManthey, commodities analyst at ING, said: "The week began with a cautious note for base metals. The markets are awaiting the Trump-Zelenskiy meetings as well as any interest rates signals from the Fed Jackson Hole Meetings." Trump will meet Zelenskiy Monday after meeting with Russian President Vladimir Putin Friday. Trump's team said on Sunday that both sides had to make compromises, as Trump wants Ukraine to accept an agreement to end Europe's bloodiest war in 80-years. As Fed Chairman Jerome Powell speaks at the Jackson Hole Symposium this week, metals priced in dollars are more expensive. The metals markets are still digesting the data released last week by China, the world's largest consumer of metals. This showed that China's factory output fell to a record low in July. "After stronger-than-expected growth in China earlier this year, demand is now slowing, as front-loading ahead of tariffs has now come to an end," Manthey said. LME tin increased 0.4%, to $33,785 per metric ton. Low tin stocks in LME registered warehouses are supporting the metal. The two-year low is 1,655 tonnes, a drop of 65% this year. The spread between the LME cash price and the three-month contract for tin The price of a barrel of oil on the London Metal Exchange (LME) rose to $63 Friday, up from $48 last week. This indicates that there is a shortage of nearby supplies. LME aluminium dropped 0.7% to 2,589.50 per metric ton. Zinc fell 0.6% to 2,777, lead dropped 0.5% to 1,970.50 and nickel declined 0.4% to 15,100. (Reporting and editing by Sharon Singleton; Additional reporting by Amy Lv)
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South Africa's artisanal mining community wants a stake in the critical minerals boom
The artisanal coal miners demand formalisation The informal mining sector wants a share of the critical mineral boom The new bill seeks to legalise the work of these people By Kim Harrisberg Mooi Masuku is one of them. He has been an artisanal miner for 17 years. He says a bill to legalise the informal mining industry is crucial to creating and protecting jobs, especially as green technologies are aiming to use critical minerals. "In South Africa I think that the government will start to understand why (artisanal mining), to protect these jobs, should be legalised," said Masuku as he sat on a slab of concrete outside his house in the Nomzamo settlement, in the township of Ermelo. He said, "We want work and we want it legally." The last week of the month, public comments on the Mineral Resource Development Bill were closed. It will now be reviewed by parliament before becoming law. South Africa has a lot of coal reserves. However, as the country shifts away from coal-based industries that are harmful to the planet and towards renewables, both formal and unofficial miners fear massive unemployment. Mining experts, however, say that the industry will not disappear overnight. According to the Critical Minerals and Metals Strategy of the United States, coal used for steel production is a critical mineral. This is similar to the position taken by Chris Wright, U.S. Secretary Energy, in May. This is in stark contrast to the majority of other countries, who view coal as a fossil fuel from which the world has agreed to "transition" away at U.N. Climate Talks COP28 in Dubai in 2023. South Africa has a wealth of other minerals, more commonly referred to as "critical", like manganese and copper. These are needed for the green energy infrastructure such as solar panels and windmills. According to the National Association of Artisanal Miners, of which Masuku belongs, small-scale and artisanal miners are eligible for this type of extraction. Zethu Hlatshwayo, NAAM spokesperson, said: "The critical mineral growth should benefit artisanal miners... we wish to mine all minerals under our feet." Fill the Employment Vacancy Hlatshwayo said that upskilling artisanal miner for critical mineral mining would fill the employment gap left by the phase-out of coal. According to the book Regional Policy of the Southern African Development Community, there are approximately 20,000 artisanal miner in South Africa. Journal of the Southern African Institute of Mining and Metallurgy states that the figures are not accurate and may be considered an underestimate, as there hasn't been a proper baseline study. Government data revealed that the coal industry is responsible for about 400,000 jobs, ranging from informal and formal miners to street vendors who sell food to them. According to the Regional Policies in the Southern African Development Community, unregulated artisanal mining is associated with criminality, such as soil erosion, and environmental damage, including mineral smuggling. Global Witness, a human rights organization, says that the abuses should be removed from the supply chain and not by the artisanal miner. Masuku said that creating safe jobs was crucial in a nation with a 33% unemployment rate, according to data from the government. NAAM also advocates for the local processing of minerals in South Africa, rather than exporting raw materials. This will bring more financial benefits to South Africans. Bill Pros and Cons The Mineral Resources Development Bill (MRD) proposes a formal regulation of artisanal and small scale miners. This includes the issuance of permits and creation designated artisanal mine zones. Kangwa Chisanga Jr. is an advocate at the National Institute of Public Administration in Zambia. He teaches legal studies and advocates that formalisation can boost job creation and improve miner safety. He said that artisanal mining could be a future industry for critical minerals. Chisanga Jr. said that this bill would be a good option if there was a common goal between government and mining companies to promote environmentally sustainable mining. There is also criticism of the bill. Chisanga Jr. said that the requirements for legalisation could be over-regulated, and scare away investors, as well as increase illegal mining. NAAM stated that the bill is still too vague and limits artisanal miner to surface mining. It also risks putting costs of rehabilitation, such as sealing off mine shafts and planting vegetation, on artisanal miner. "We're concerned that the application process for permits will be long and expensive," said Bonginkosi Buthulezi. He is an artisanal miner in Ermelo, and a member of NAAM. AgriSA, a national agricultural organization, has also reacted against the bill, stating that a rise in artisanal mines poses a threat to water quality, agriculture and food security. The Department of Mineral Resources and Energy has not responded to any requests for comments. While NAAM awaits the outcome of its feedback regarding the bill, it will continue to campaign to have mining companies seen as allies, not enemies, by the government.
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India proposes three-year import tariffs on certain steel products
India has proposed a tariff of 11-12 percent on certain steel products for a period of three years to reduce shipments by China, the world's largest producer. If a levy is imposed, it will begin at 12%. The levy will then be reduced to 11.5% the second year, and 11% the third. This was announced by the Directorate General of Trade Remedies in a 16th August notification. The notification stated that "the Authority concludes there has been a recent, abrupt, sharp, and significant increase in imported steel," adding that it could result in serious harm to the domestic sector. The DGTR said that because of the 50% tariffs on imports to the U.S. and similar measures taken by other countries, the bulk of the steel volume is held by manufacturers around the world. "Therefore the safeguard duty should address not only the serious injury sustained by the domestic industry...but the threat of future serious injury." After preliminary findings, the Indian government will make a final recommendation. April is a month of celebrations. A temporary tariff of 12% was imposed for 200 days On Monday, Japanese steel industry lobby groups requested that measures be taken to protect their domestic industry from unfair imports. The U.S. President Donald Trump’s import tariffs for steel have sparked a wave in trade frictions with China, as countries such as South Korea and Vietnam have imposed anti-dumping levies.
European stocks and US dollar fall as traders focus on Ukraine talks
The U.S. Dollar and European shares both shook on Monday, ahead of a week that is expected to be eventful for U.S. rate policy. Oil prices also remained subdued because the risks associated with Russian supply seemed to have diminished.
Early trading saw little change in the pan-European STOXX 600 Index after it reached its highest level since last March on Friday. The MSCI All Country World Index was hovering near the record high set last week.
In the early Asian session, an optimistic mood led to record highs for indices in Japan, Taiwan, and China. A gauge of Chinese stocks also reached its highest level since a decade.
Investors are preparing for U.S. president Donald Trump to meet with Ukrainian president Volodymyr Zelenskiy, and European leaders on Monday evening to discuss next steps in ending the war in Ukraine. This follows Trump's Friday summit with Russian President Vladimir Putin.
Trump, despite the fact that there was no agreement at the summit, appeared to be more in line with Moscow regarding a peace deal for Ukraine rather than a first ceasefire.
The main economic event this week is the Jackson Hole Symposium, which will take place between August 21 and 23, at the Kansas City Federal Reserve. Chair Jerome Powell will speak about the economy outlook and central bank policy.
The markets are pricing in a chance of around 85% for a rate cut by a quarter point at the Fed meeting on September 17. They also price in a further easing before December.
Mark Matthews is the head of Asia research at Bank Julius Baer, Singapore. He said that he saw three rate cuts this year in the U.S., a slower GDP but no recession. The combination of these two factors should allow the rally continue.
Stock markets have been buoyed by the prospect of lower borrowing rates globally. Japan's Nikkei has reached a new record high. MSCI's broadest Asia-Pacific share index outside Japan gained 0.3% after reaching a record high of four years last week.
Commerzbank's 3.7% drop dragged down the DAX in Europe. The FTSE in Britain was flat.
Solid Earnings
S&P futures slipped 0.1%, while Nasdaq was flat. Both were at all-time highs.
The valuations have been supported by a strong earnings season, as S&P 500 EPS grew 11 % on the year. 58% of companies also raised their guidance for the full-year.
Goldman Sachs analysts said that the results of mega-cap technology companies have been exceptional. While Nvidia is yet to release its earnings, Magnificent Seven grew their EPS in 2Q by 26% compared to the same period last year, which was a 12% improvement over expectations going into earnings season.
Home Depot, Target Lowe's, Walmart and Lowe's all report this week.
The possibility of Fed easing keeps short-term Treasury rates down, while the longer end of the curve is under pressure from the threat of stagflation, and huge budget deficits. This has led to the steepest yield curvature since 2021.
The prospect of higher borrowing for increased defence spending has also pushed German long-term rates to record highs.
The dollar has been impacted by bets that the Fed will ease further. It dropped 0.4% last week against a basket currency to end at 97.858.
The dollar remained flat against the yen, at 147.24. Meanwhile, the euro stayed at $1.17 despite adding 0.5% to its value last week.
The dollar is doing better than its New Zealand counterpart, as it's widely expected that the central bank will cut rates on Wednesday to 3.0%.
Gold, the most important commodity, rose 0.5%, to $3,343 per ounce, after falling 1.9% in the previous week.
The oil prices fell as Trump backed down from his threats to impose more restrictions on Russian exports. However, White House Trade Advisor Peter Navarro stated that India's purchases were funding Russia's conflict in Ukraine.
Brent was unchanged at $65.81 per barrel while U.S. crude remained steady at $62.81 a barrel.
(source: Reuters)