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Bangladesh court stops arbitration with India’s Adani Power for dues
The Bangladesh High Court halted arbitral proceedings on Wednesday between India's Adani Power and Bangladesh's power board over disputes regarding power supply payments. The Bangladesh Power Development Board and the company led by Indian billionaire Gautam Adian have been in dispute over unpaid electricity bills as part of an agreement that both parties signed in 2017. Adani and BPDB decided early this month to use an international arbitration process in order to settle disputes regarding Bangladesh's electricity supply payments. The court announced on Wednesday that arbitration would be suspended until a report is received from a committee formed by the high court to investigate fairness and any possible irregularities of the agreement between Bangladesh's government and Adani Group. Last year, the Bangladesh High Court ordered that a group of experts examine the contract between Adani and Bangladesh. Adani Power provides electricity from its 1,600 megawatt coal-fired Godda power station in eastern India. This plant meets almost a tenth the power needs of Bangladesh. Abdul Qayyum told reporters that if Adani begins arbitration proceedings in Singapore before the report is released, the investigation would be of no value. In December, the interim government of Bangladesh accused Adani for breaching the power-purchase agreement by refusing tax benefits to the Godda Plant that India had provided. Adani received a tariff from Bangladesh of 14,87 takas ($0.1220), per unit, during the fiscal period ending June 30, 2024. This was higher than the average 9.57 takas for power supplied by Indian companies. Adani Power and BPDB didn't immediately respond to a request for comment. (Reporting and editing by Maju Sam; Sethuraman N R and Ruma Paul)
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Brazil's Lula presses COP30 negotiators to reach an early climate agreement
Brazil's President was scheduled to meet with key negotiators on Wednesday at the COP30 Summit as part of a push to reach a deal before schedule on some the most controversial issues in the global talks on climate change, including fossil fuels. Nearly 200 countries have gathered in the Amazonian city of Belem for a two-week U.N. Summit to increase multilateral action on climate change. The United States was absent, but the United States is the largest emitter of greenhouse gases. Brazil, the host country, hopes to break the trend of recent climate summits that have run past their deadlines by attempting to approve a package on Wednesday and to address the remaining issues on Friday. FRESH DRAFT ESTIMATED ON WEDNESDAY By late morning, the COP30 Presidency had not yet announced a new draft of the original deal. The first version published on Tuesday presented a variety of options that divided opinion. According to Brazilian officials the return of President Luiz inacio Lula da Silveira to the conference gave the talks a new political boost. He was to meet with key negotiators and U.N. secretary-general Antonio Guterres. Brazil and 80 other nations that support it want to come to an agreement to help spur action in 2023 on the agreement made at the COP28 for a transition away from fossil-fuels. But the idea of creating an action plan to guide this transition has been rejected so far by others, Andre Correa do Lago, Brazil's COP30 president, said on Tuesday. VANUATU: 'WE HAVE BLOCKERS' Vanuatu, a Pacific island nation, Vanuatu’s climate minister Ralph Regenvanu said Saudi Arabia was among those who were opposed. Saudi Arabia didn't immediately respond to requests for comments. Regenvanu stated, "I believe it will be very difficult... because we have blockers." The package also includes a number of other contentious issues, including how wealthy countries will finance poorer countries' switch to clean energy and what needs to be done to close the gap between emissions reductions promised and those required to stop temperature rises. The poorer countries, who are already suffering from the effects of global warming, rally for a strong result. We want ambition in finance. "We want ambition on adaption. "We want to see ambitious plans for the transition," Jiwoh Abdulai said, Sierra Leone’s climate minister. "We want to make sure that we are living on a sustainable path, not only for our generation but also for future generations." Five sources said that plans to launch a U.N. supported global market to trade carbon offset credits have hit a snag due to disagreements between governments over funding. (Additional reporting by William James, Editing by Richard Valdmanis, Alison Williams.)
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Gold gains 1% as demand for safe-havens increases ahead of US data
Gold prices rose over 1% Wednesday as investors sought out the safe haven asset in anticipation of the Federal Reserve meeting minutes to be released later that day. Also, the delayed U.S. jobs data for Thursday was a factor. At 9:36 am, spot gold rose 1.2% to $4,116.26 an ounce. ET (1436 GMT). U.S. Gold Futures for December Delivery gained 1.3% to $4117.10 an ounce. There's a safe haven buy-in going on right now .... Bob Haberkorn, RJO Futures' market strategist, said that the (job) figures have been slightly softer and there is a jitter in the equity markets. The global shares stabilised on Wednesday after another selloff sparked by fears over AI valuations. However, the mood was cautious as investors awaited what could be a make-or break earnings report from chip giant Nvidia, and U.S. job data later this week. Data showed that on Tuesday, the number of Americans who received unemployment benefits reached a two-month-high in mid-October. The Federal Reserve will release its minutes of the October meeting at 2 pm. Today, policymakers will be able to clarify their stance on a possible rate cut. At the meeting, the central bank cut interest rates by 25 basis point. However, Chair Jerome Powell warned against further rate cuts in this year. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. The release of the September job report, which was delayed because of the U.S. shutdown of government, is also expected on Thursday. This will provide a preliminary gauge of the economy's health. The September employment report is expected to show that 50,000 new jobs were created during the month, according to economists polled. The CME FedWatch tool shows that traders now expect a 51% probability of a rate reduction, up from 46% in the earlier session. FEDWATCH Other than that, silver spot rose 2.3%, to $51.87 an ounce. Platinum increased 1.3%, to $1.544.80. Palladium dropped 0.5%, to $1.396.50. (Reporting and editing by Alexandra Hudson in Bengaluru)
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Indian state regulator delays Adani's power deal over cost issues
A filing on Wednesday revealed that the power regulator in Uttar Pradesh, northern India, has deferred approval of an Adani Group coal power project worth $2 billion due to a lack of clarity about costs. This was six months after its announcement. Adani Power won in May a contract for the supply of 1,500 megawatts from a coal-fired plant in Uttar Pradesh, at a cost of 5.38 rupees per unit ($0.0638). Lack of clarity on costs is due to a July decision by the Indian Government to relax rules for certain coal plants that install equipment which would remove sulfur dioxide while burning coal. Coal plant operators are expected to save billions of rupees through the easing of regulations. In an order, the state power regulator stated that Uttar Pradesh Power Corporation failed to provide their own analysis of cost savings or savings resulting from the non-installation of the equipment. The commission ordered the state utility to add Adani Power as a party in the case, and to submit detailed cost assessments to the commission within two weeks. The case will now be heard on December 18. In its previous hearing, held in September, the regulator stated that the utility had to have notified the commission of any changes in fixed charges and operating costs resulting from the fact that the equipment was no longer required. The utility also claimed that it should have evaluated the impact of the revised rates for goods and services taxes on coal as part of the power supply contract. Indian state electricity distribution companies are signing long-term agreements with coal-fired generators in order to meet an expected surge in evening demand. This is despite efforts by the country to increase its clean energy capacity. (Reporting and editing by Shreya Biwas; Sethuraman N.R.)
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MP Materials forms rare-earth refinery JV with Saudi Arabian Mining Company
MP Materials announced on Wednesday that it would form a joint venture for the refining of rare earths in Saudi Arabia, with the U.S. Department of Defense (DoD) and the Saudi Arabian Mining Company. In premarket trading, shares of the company that operates the U.S.'s only rare earths mine, Mountain Pass in California, rose by more than 8%. Saudi Crown Prince Mohammed bin Salman makes his first U.S. trip since 2018. He is hoping to promote the deepening of commercial ties between both countries. During President Donald Trump's visit to the Middle East in May, the U.S. announced that it had invested billions of dollars into both Saudi Arabia and the U.S. The company announced on Wednesday that the initiative builds upon its multi-billion dollar deal with the U.S. Government announced in July. It aims to increase output of rare earth magnetic materials and loosen China's hold on the materials needed to build weapons and electric vehicles, as well as many electronic devices. In the agreement, MP Materials, the Defense Department, and a joint venture will each hold 49% of the company, while Maaden retains no less than 50%. Trump has ordered that the Department of Defense renames itself as the Department of War. This change will require the action of Congress. The company also said that it was in talks to support or work with Saudi Arabia on magnet manufacturing. (Reporting and editing by Krishna Chandra Eluri in Bengalluvila; Sriraj Kalluvila, Sriraj Menon)
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Launch of UN-backed carbon markets could be delayed by funding issues
Five sources said that plans to launch a U.N. supported global market to trade carbon offset credits hit a snag during the COP30 Summit, as governments struggled to resolve a disagreement over funding in order to get the market running. The U.N. has been trying to create a global carbon market since the early 2000s. At last year's climate summit, rules were agreed on for a U.N. centralised trading system that allows countries and companies to buy CO2 emission credits which represent emissions reductions from poorer countries. It is intended to allow richer countries and companies to count these emission reductions towards their climate goals and channel funding for CO2-cutting initiatives in developing nations. It was anticipated that the market would launch in a proper manner by issuing carbon credits as soon as this year. DISPUTE OVER 30 MILLION DOLLARS FROM OLD FUND Five sources familiar with the discussions said that governments attending the COP30 in Belem in Brazil are divided over whether $30 million in leftover funds from a U.N. carbon credits scheme, which has been around for years but is rarely used, should be repurposed in order to launch the new global market. Sources said that without this cash transfer the new carbon market would not be fully funded, effectively putting the entire market on hold. One COP negotiator said, "It delays the launch of the marketplace." The negotiator stated, "There is a serious budget problem." The market cannot continue. The patchwork of voluntary standards The U.N. scheme is expected to be a breakthrough for the carbon credit market, which has been plagued by scandals over the past few years due to carbon credits that failed in their promises of reducing emissions. The U.N. would establish strict quality criteria to create a global standard of what good carbon credits should look like and charge a premium for them. Some carbon credit certifiers already in existence have revised their methods to conform with the U.N. scheme rules. The market will also help to provide much needed money for poorer countries to adapt to climate change. 5% of the proceeds from the carbon credit trading in the U.N. System is siphoned off into a U.N. Adaptation Fund. The $30 million that was used to keep the market running will also be transferred into this climate adaptation fund once the market is fully operational. Disagreement over when the old scheme should close Sources told us that some countries were ready to shut down the old U.N. scheme within a few months, and transfer the remaining $30 million into the new carbon market. Negotiators stated that other governments prefer to extend the old scheme for an additional two years to allow them to transfer credits from this scheme. Some people want the money to be put directly into the Climate Adaptation Fund. The draft negotiation text published by COP30 president Brazil on Wednesday showed that countries have not yet agreed if they will transfer $30 million to the carbon market. A "XX" was written in the place of the amount, indicating the matter is still being negotiated. Two diplomats stated that they believed the talks on carbon markets had become linked with trade-offs on other thorny topics governments are negotiating during COP30 – including trade policies and financing – and that if agreements were made on these topics the carbon market question could be resolved. (Reporting and editing by Richard Valdmanis, Conor Humphries, Virginia Furness and Sudarshan Varadhan. Additional reporting by Virginia Furness.
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Anfield wants approval to restart Colorado's uranium-vanadium mine
Anfield Energy announced on Wednesday that it had applied to the state for approval to restart the JD-8 uranium-vanadium mine, which was previously producing in Colorado. This will allow the company to resume production in the second quarter of 2026. Due to the poor market conditions that made production uneconomical, JD-8's uranium-vanadium project is currently inactive. The Burnaby-based Canadian company has submitted its application at a time when the Trump administration is intensifying efforts to boost U.S. security of energy by reducing reliance on imported Uranium and revitalising nuclear sector. The federal government has increased its support for restarting nuclear reactors and for accelerating the permits for new uranium project due to an increase in power demand related to AI-related data centers and other infrastructure. Anfield CEO Corey Dias said, "This JD-8 permitting milestone is a crucial step in Anfield’s strategy to restore U.S. uranium capacity." JD-8, with its strong market fundamentals and rising demand in the United States, is well positioned to supply high-grade uranium for the American fuel cycle. The Shootaring Canyon Mill is one of the only three conventional uranium-milling facilities in the U.S. The Trump administration approved Anfield’s proposed Velvet-Wood Uranium Mine Project in Utah after a rapid environmental review of 14 days as part of a process to speed up permitting for energy and mining projects. The Trump administration announced on Tuesday that it had loaned Constellation Energy $1billion to restart its reactor at the Pennsylvania plant, formerly known by the name Three Mile Island. This was the site of the 1979 nuclear accident which caused the worst commercial nuclear power disaster in U.S. History. (Reporting from Sumit Saha, Bengaluru. Editing by Tasim Zaid)
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Saudi Arabian crude exports reach a seven-month high during September
Saudi Arabian crude oil exports reached a record high of seven months in September, according to data released by the Joint Organizations Data Initiative on Wednesday. The world's biggest oil exporter has increased its crude exports to 6,460 million barrels of oil per day (bpd), a slight increase over August's 6.407 millions bpd and the highest level since February. Saudi Arabian crude production, on the other hand, reached a peak of nearly 2.5 years, 9.966 millions bpd, in September. This was its highest level since April 2023. In August, the output was 9.722 millions bpd. JODI publishes the monthly export figures of Saudi Arabia and its other OPEC member countries. JODI data showed that the refinery crude throughput rose by 1.3% to 2.940 millions bpd during September. Direct crude burning fell by 122,000 to 485,000 bpd. "OPEC+ Group of Eight decided in September to unwind its production cut, with Saudi Arabia increasing production by 244,000 bpd but with crude oil and refined products exports only up by a fraction of that," said UBS Analyst Giovanni Staunovo. The difference in inventory must have been consumed by domestic consumers. OPEC+ increased its production targets by 2.9 million barrels a day, or 2.7% of the global supply. However, the group agreed to pause the increase in the first quarter next year, as it moderates plans to regain the market due to growing fears of a glut. OPEC+ pumped a total of 43.02 millions barrels per day during October, OPEC announced last week. This is down 73,000 bpd compared to September. According to a report, if OPEC+ continues pumping at the same rate as in October, the world's oil market will have a surplus of 20,000 barrels per day. Last week, the International Energy Agency (IEA), said that there will be a surplus of up to 4,09 million barrels a day on the market next year. Saudi Arabia will export crude oil worth at least 36,000,000 barrels to China by December. (Reporting and editing by Alexandra Hudson in Bengaluru, Noel John is in Bengaluru.
BHP and POSCO Sign Deal to Advance Hydrogen-Based Low Emission Iron
BHP, world's largest miner, and South Korean Steelmaker POSCO announced on Thursday they had signed an agreement for the advancement of the production "near-zero emissions" iron. This is a major step towards manufacturing green steel.
Iron will be produced in a demonstration facility at POSCO’s steelworks, located on the port side of South Korea’s city of Pohang. The process is based on hydrogen and uses an electric smelting oven.
Construction will begin shortly, with the commissioning scheduled for 2028. The plant is expected to be able to produce 300,000 tons of molten metal per year.
According to the International Energy Agency, a ton of steel produced in a blast-furnace, which is responsible for most of the world's production of steel, emits around 2.3 tonnes of carbon dioxide. The sector also accounts for about 8% of global emission.
When crude steel is produced without scrap, and emits 0.4 tons or less of carbon per ton of crude steel, it is classified as "near-zero emissions".
Australia's iron ores are typically too low-grade to produce green steel without a further processing step. This could make them less competitive with a future of lower carbon emissions than higher grade ore produced in Brazil.
(source: Reuters)