Latest News
-
New Zealand's 'Pure gold' chases record prices
New Zealand is accelerating gold projects and courting investors as rising bullion prices revive an industry that has been in decline for a long time. The government is also testing its "100% pure" brand, while it looks for ways of boosting a weak economy. According to calculations, New Zealand's production of gold is expected to double in the mid-2030s, reaching its highest level?in atleast three decades. Two new projects have already been approved, and a third awaits a final decision. This?would? put the country on track to surpass the government's goal of increasing annual mineral exports to NZ$3bn ($1.8bn) by 2035. The government is trying to create jobs in the face of near-decade high unemployment and a weakening business climate. Miners are seeing potential. Government data show that the country issued 163 permits for mining, prospecting and exploration last year. This is up 16% compared to a year ago. Environmentalists and some parts of the agriculture sector are concerned that an increased mining footprint will damage the natural image projected by the marketing for the tourist spots and exports in the country. This year, the revival will be tested by two main factors:?the future direction of policies after a highly contested election on November 7, and if a controversial project is approved. "New Zealand's mining industry has been overlooked for a very long time," said Jake Klein, the founder of Australia's No. Evolution Mining is the No. 2 gold miner in Australia, and Endura Mining chairs Endura Mining. The Snowy River Project, which will begin production this December, is managed by Endura Mining. He added that "the mining industry loves to discover new jurisdictions" but success and consistency in government policy will be key. JOBS AND INVESTOR PUSH Shane Jones, Minister of Resources, told the government that it was committed to promoting the industry. The government had, last month, slashed the economic growth forecast for next year to just 2.3%. He said, "Our economy requires every arrow of the economic quiver to be shot with incredible accuracy." Gold is an economic bright spot. Export revenues nearly tripled to NZ$1.83billion in just three years, representing 2.3% of all goods exported compared to?0.9% in 2020. New Zealand passed a law late in 2024 to speed up approvals for major energy, mining, and infrastructure projects. Fast-track consenting allows these developments to bypass certain standard regulatory processes, and limit public consultation and legal challenge. Labour Party, the opposition party, has stated that it will fix the law to ensure environmental protections can't be overridden. OceanaGold, a Canadian company listed on the stock exchange, was approved under the fast track process. Santana Minerals awaits a decision in the streamlined system. Snowy River will add 250 jobs to the region and bring in at least NZ$350 millions annually to export revenues, according to estimates by government. Klein stated that if we find New Zealanders who are working in Australian mines and want to return home, then we will hire them. OceanaGold, New Zealand's largest gold producer, plans to invest NZ$1billion in its Waihi North Project, which will begin production in 2032. Alison Paul, Senior Vice President of OceanaGold, said that its operations are attractive to workers from Australia who want to be in the region and spend their days off "hunting, fishing, farming, or with family and kids." Michael Gordon, a Westpac senior economist, said that while mining is highly productive, the benefits will mostly go to the mine owners and not the rest of the economy. 'RAVAGE and PILLAGE CONCERNS' The debate over gold mining is most intense in Central Otago on New Zealand's South Island. Santana Minerals, an Australian listed explorer, is waiting for consent to its Bendigo -Ophir project. A decision must be made by October 29, 2026. Santana Minerals' CEO Damian Spring is a New Zealander living an hour away from the proposed mine. He emphasized the creation of high-paying jobs in the region. "Responsible Mining is not a contradiction here." He said that New Zealand was making a decision. According to estimates by the government, the proposed mine will contribute an average of NZ$360m a year to New Zealand's GDP and employ directly 351 people. Wineries, heritage groups and environmentalists are opposed to the mine. Central Otago's wine interests are worried that the open-cast mining could endanger water supplies and expose vines to airborne pollution, undermining an industry of premium wines built over many decades. Sam Neill who owns Two Paddocks Winery in Central Otago warned that if Santana's Mine is approved, other miners could follow suit. This would be catastrophic. In an email, he wrote: "#ravageandpillage." Zoe Hawkins is an organizer with Natural Capital who represents a larger group of locals that opposes Santana’s project. She said that groups only had 20 working days in which to respond under the fast-track permit system. I would like to emphasize that we have a real chance of stopping this. She said, "I think the odds are really stacked against us." (Reporting from Melanie Burton in Melbourne, and Lucy Craymer at Wellington; editing by Sonali Paul).
-
Asia shares fall as markets revalue Fed expectations and oil gains
After the U.S. lifted sanctions against?Iran on Tuesday, oil prices rose and traders were concerned that the Federal Reserve might take more aggressive measures to combat inflation in the second half of the year. S&P 500 futures and MSCI's broadest Asia-Pacific index outside Japan both fell by 0.5%. Brent crude rose 0.2% to $78.03 a barrel. The Nikkei was down 0.6%. This is a reversal of some losses. Data showed that Japan's manufacturing industry experienced robust growth in the month of June. New orders surged at their highest rate in over four years. South Korean stocks fluctuated between gains, losses, and last 2% lower. Taiwanese shares opened 0.9% higher and set a new high. Chris Weston is the head of research for Pepperstone Group Ltd. in Melbourne. The former generals in the market have lost their momentum and investors are moving into areas that are more conservative, less AI focused and offer more predictable cash flows. The S&P 500 fell 0.4% overnight and the Nasdaq composite?slid 1.3%. Megacap?technology companies such as Alphabet, SpaceX and others were primarily responsible for the declines. Oil prices fell more than 3% after U.S. vice president JD Vance announced that progress had been achieved in negotiations with Iran, and that the Strait of Hormuz is open. The yen is flat against the US dollar, at 161.55yen. This is a return to its lowest levels in over 40 years, following a volatile overnight trading session in the U.S. A source familiar with the meeting said that Japanese Finance Minister Satsuki Katayama met online late Monday night with U.S. Treasury Sec. Scott Bessent, amid growing concerns over currency fluctuations. The British pound is flat at $1.3247, after Prime Minister Keir starmer announced on Monday that he would be resigning. This will pave the way for an orderly transfer to Andy Burnham. The U.S. Dollar Index, which measures greenback strength against six currencies, traded at 101.04, close to its highest level since May of last year. The Federal Reserve, under the leadership Kevin Warsh, is expected to increase rates more quickly. FedWatch, the CME Group tool, shows that Fed funds futures price an implied 54% probability of at least two 25 basis-point increases before the end of the year. This compares to a 15.2% chance one week ago. The yield of the 10-year Treasury Bond in the United States was 4.501%, down 0.2 basis points. Gold fell 0.2% to $4,180.38. Bitcoin fell 0.8% to $63,873.71 while ether dropped 0.5% to $1,724.08. (Reporting and editing by Jacqueline Wong; Reporting by Gregor Stuart Hunter)
-
After the oil selloff, we await progress on Strait of Hormuz flow
Tuesday, oil prices recovered after a sharp drop the previous session. This was supported by a tempered optimism about the U.S.-Iran Peace Talks. Investors awaited more clear signs of progress on restoring crude flow through the 'Strait Of Hormuz. Brent crude futures rose 24 cents or 0.38% to $78.15 per barrel. U.S. West Texas Intermediate was up 33 cents or 0.46% at 0026 GMT. Prices dropped more than 3% after the United States granted Iran 60 days of sanctions relief following initial peace talks. Officials also reported that the hostilities had ceased in Lebanon as a result of the wider agreement. The development came after a weekend which appeared to have put the week-old agreement in danger, with threats by U.S. president Donald Trump that he would restart the war if Iran disrupted the shipping through the Strait of Hormuz following Tehran's declaration of the strategic waterway as closed. Tim Waterer is the chief market analyst for KCM Trade. He said that there was a "prevailing" scepticism about oil prices, which stemmed from a deep-seated distrust between Washington and Tehran. This suggests that any return to prices comparable to those of pre-war will be delayed, rather than immediate. Trump stated in a Monday post on Truth Social that Iran would agree to weapons inspections as a way to ensure "nuclear integrity." Trump told reporters that if Iran didn't follow through on their agreement or they weren't behaving properly, he would do whatever he had to. Waterer said that the market had already priced in optimism about the Strait of Hormuz and its potential reopening. However, traders are now taking more of a measured approach while they wait for concrete evidence to show the deal is going to hold and traffic will return. Ship-tracking data showed that two crude tankers carrying just under 2,000,000 barrels of oil passed through the Strait of Hormuz Monday. This was a sign of increased traffic after Sunday's lower flows due to concerns about?passage of the waterway. The Department of Energy reported on Monday that U.S. crude oil stocks in the Strategic Petroleum Reserve dropped to 331.2 million barrels, the lowest level since June 1983. This was due to the tightening of supplies following the U.S. - Iran conflict. Reporting by Pranav Mathur in Bengaluru, editing by Jacqueline Wong
-
US gasoline prices fall for the sixth consecutive week
The U.S.-Iran diplomatic relationship has resulted in a reduction of gasoline prices for Americans. This is the sixth consecutive 'weekly drop, and a 15% decrease from the peak reached in May. According to GasBuddy, the?national average gasoline price fell by 14.1 cents per gallon in the past week. It was $3.85 a gallon on Sunday. Prices fell in the majority of states. GasBuddy data revealed that gasoline prices dropped by 25 cents per gallon over the last week in Colorado, 22 cents in Arizona, and 21 cents (per gallon) in Ohio. This drop could ease the pressure on 'U.S. Donald Trump and other Republicans. The Republicans are fighting to maintain a narrow majority in Congress during the midterm elections this November. They have also been criticized by consumers for high prices. StoneX analyst Alex Hodes stated that a price reduction should help to ease inflation. Hodes warned that expectations of the return of normal?energy flow through the Strait?Hormuz, off Iran, are "large assumptions" and could lead to setbacks. Supply risks persist despite the fact that Iran closed the Strait of Hormuz again over the weekend. Transits remain below the levels before the conflict began in late February. GasBuddy's head of petroleum analyses, Patrick De Haan, says that there is no?significant risk? of a gasoline price spike as long as certain vessels continue to pass through the strait. He added that if the U.S.-Iran relations deteriorated, this could "quickly" change. Recent price drops could be reversed by tighter supplies due to refinery outages, and the approaching Atlantic hurricane season. TotalEnergies shut down the refinery, which produces 238,000 barrels per day, in Port 'Arthur, Texas last week after a lightning strike knocked power out. The 'full restart' is expected to be completed within seven days. On Sunday, a fire broke out at Marathon Petroleum's 631,000-barrel-per-day Galveston Bay Refinery in Texas City, Texas. Reporting by Nicole Jao, New York; editing by Cynthia Osterman
-
Mayors of cities from London to Melbourne are seeking to reduce the burden of data centres on electricity and water
City leaders have announced that mayors of 40 cities, including London and Phoenix, have agreed to collaborate to reduce the strain on the electricity grids and water supplies, as well as the local communities. The 'global' surge in computing power is driving billions of dollars of investment into new sites. This has sparked protests from countries like the United States, South Africa, and Britain. The Global Urban Data Centres Pact is set to be unveiled on Tuesday during London Climate Action Week. It aims to establish standards that will ensure data centres are more efficient and use all resources efficiently. The rules will be tailored to the local conditions - cooling requirements in Iceland are different from those in Manila - but the mayors say the framework should guide planning and permitting decisions as well as negotiations between companies and governments. Melbourne Lord Mayor Nicholas Reece stated that around 50 major data centers already operate in the City and are projected to account for approximately 10% of local energy demand by 2030, and up to 20% by 2040. Reece stated that "data centres are the largest thing to hit the energy grid since air conditioners in the 1950s... Where the rollout of the air conditioners took decades, this happens in just a few years." He said that the centres could use up to 20 billion litres a year. This is equivalent to about 4% of the water supply in the city. "Race to the Bottom" Reece stated that investment in data centres is happening at a "breakneck pace", which outpaces regulation. This puts cities at risk of "a race to the bottom", as governments compete for investment and sometimes ignore environmental scrutiny. Phoenix Mayor Kate Gallego stated that the city and its surrounding area had 225 data centres planned or existing, with plans to double electricity consumption. Gallego stated that utilities which experienced decades of steady growth are now experiencing growth comparable to the last century in just a few years, driven by AI-related computing requirements. She said that the demand for electricity was unprecedented. She said that this has led to disputes centered on noise, land usage and safety risks associated with battery storage. There are also broader concerns regarding the installation of infrastructure in residential areas. London Mayor Sadiq khan, on the other hand, stated in a statement, that AI and digital infrastructure will play "a significant role in the future success?of cities across the globe... Residents are entitled to expect growth be managed responsibly". According to the World Economic Forum, data centres are responsible for 2.5% - 3.7% of greenhouse gas emissions globally. This is more than aviation. Their electricity consumption has been increasing faster than global power consumption. Barcelona, Chennai, and Boise, in the U.S. State of Idaho, are among the cities that have signed up. C40 Cities coordinates the initiative, which is a network of more than 100 of the largest cities around the world working together to combat climate change. Reece stated, "We don't want the smart city race to destroy the planet." (Reporting and editing by Emelia Sithole Matarise; reporting by Simon Jessop)
-
Oil prices fall as worries about rates offset optimism over Iran talks.
As expectations for a rise in interest rates pushed up U.S. Treasury Yields, global stocks were mostly flat Monday. Oil prices fell as optimism about progress?in U.S.Iran talks was offset. U.S. Vice-President JD Vance stated in Switzerland that Iran has agreed to let nuclear inspectors enter the country. The conversations about the inspections could begin as early as this week. Treasury Department of the United States authorized Iranian crude oil, petrochemicals and petroleum products sales through August 21. This eases decades-old sanctions as the United States moves toward a final deal with Iran in exchange for nuclear inspections and a free transit through Strait of Hormuz. Wall Street's benchmark S&P 500 index and the Nasdaq both finished lower due to a decline in consumer discretionary and communication services stocks. The Dow finished higher. The Dow Jones Industrial Average fell 0.37%, the S&P 500 dropped 0.37%, and the Nasdaq Composite declined 1.32%. The STOXX 600 index in Europe rose by 0.58%. MSCI's global stock index fell by 0.03%. Gerry Sparrow, Chief Investment Officer at Sparrow Capital Management, stated that the markets are driven by the Fed's hawkish view and lower expectations of new Fed Chair Kevin Warsh moving to start cutting rates. Sparrow stated that the market was surprised by the action of the new Fed Chair, as they had expected him to be more lenient on interest rates. Last Wednesday, the Federal Reserve held interest rates at their current level. However, policymakers are expecting a rise in borrowing costs this year due to growing concerns over inflation that is above the 2% target set by the U.S. Central Bank. The yield on the benchmark U.S. 10 year notes increased 5.78 basis points to 4.50%. Brent crude futures settled lower by 3.38% at $77.90 a barrel, a far cry from their peak in May of $126.41. Sparrow stated that "the progress in peace negotiations is good. But the only negative surprise was the fact that the new Fed didn't seem to be a bit more accommodating during its latest announcement." UK POUND RISE AFTER STARMER'S RESIGNATION The pound rose after Keir Starmer, the Prime Minister announced his resignation. This paved the way for Britain to elect its seventh leader in ten years. The pound recovered from earlier losses to be up?0.11%, or $1.3244. Andy Burnham, the former Manchester mayor, is expected to succeed Starmer. However investors believe that a key question for UK bond markets nervous about Brexit will be who will become finance minister. The euro fell 0.36%, to $1.1427 after reaching a three-month high on Friday of $1.1418. The dollar was up 0.19% to 161,58 yen. Only the threat of Japanese intervention prevented it from reaching its 40-year high in 2024 of 161.96. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.17%. Gold spot rose by 0.72%, to $4190.17 per ounce.
-
US Loans 500,000 Barrels of Oil from Strategic Petroleum Reserve
The U.S. Energy Department announced on Monday that a single energy 'firm' had borrowed 500,000 barrels of crude oil, or 1.25% of all the barrels available in the latest allocation under the Trump Administration's efforts to reduce fuel prices. In March, the Trump administration released 172 million barrels of oil from the SPR as part of a coordinated effort with the International Energy Agency. The goal was to reduce fuel prices which spiked following the U.S. and Israeli war against Iran that began on February 28. U.S. has so far granted contracts for the loan of approximately 133 million barrels. On June 10, the Energy Department announced its latest offer of a?SPR. It said it wanted to lend energy companies up 40 million barrels. The Energy Department announced on Monday that Vitol, an energy trader, was awarded a contract to purchase 500,000 barrels. The companies that borrow the oil must return it in its original volume, plus a premium of up to 24 percent as extra oil. The Department of Energy says the system will "stabilize markets without costing taxpayers in the United States." Energy Secretary Chris Wright has said that 35-40 million barrels extra of oil will be returned to the U.S. taxpayers this year and next as premiums. Oil prices have dropped as concerns about supply eased following the signing of a 60-day ceasefire agreement between Washington and Tehran. U.S. Vice President JDVance said on Monday that progress had been made with Iran in the talks and that the Strait of Hormuz was now open for trading energy. Reporting by Ismail Shakil, Editing by Andrea Ricci
-
Oil prices fall as worries about rates offset optimism over Iran talks.
The global stock market was mostly flat Monday, while oil prices dropped. This was due to a combination of 'expectations' that higher interest rates would be imposed on the U.S. Treasury. U.S. Vice-President JD Vance stated in Switzerland that Iran has agreed to let nuclear inspectors enter the country. The conversations about the inspections could begin as early as this week. Treasury Department of the United States authorized Iranian crude oil, petrochemicals and petroleum products sales through August 21. This eases decades-old sanctions and pushes towards a final peace agreement with Iran. In exchange for?commitments to nuclear inspections and free passage through Strait of Hormuz. Wall Street's benchmark S&P 500 index and Nasdaq fell on?the?day, dragged lower by consumer discretionary and communication services stocks. The Dow rose. The Dow Jones Industrial Average increased by 0.13%. The S&P 500 dropped by 0.46%. And the Nasdaq Composite was down 1.32%. The STOXX 600 index in Europe was up by 0.58%. MSCI's global stock index fell by 0.08%. The apparent progress in peace talks has helped Asian stocks to rise overnight. MSCI's broadest Asia-Pacific index outside Japan closed up by 0.82%. Gerry Sparrow is the chief investment officer of Sparrow Capital Management. He said that markets are driven by the Fed's hawkish view and a reduced expectation that new Fed Chair Kevin Warsh will begin to cut rates. Sparrow stated that the market was surprised by the action of the new Fed Chair, as they expected him to be more lenient on interest rates. Last Wednesday, the Federal Reserve held interest rates at their current level. However, policymakers are expecting a rise in borrowing costs this year due to growing concerns over inflation that is above the U.S. Central Bank's 2% target. The yield on the benchmark U.S. 10 year notes increased 5.78 basis points to 4.50%. Brent crude futures settled lower by 3.38% at $77.90 per barrel, a far cry from their peak in May of $126.41. Sparrow stated that "the?progress of peace talks was good, but the only disappointment was that the new Fed didn't seem to be a bit more accommodating during its most recent announcement." UK POUND RISE AFTER STARMER'S RESIGNATION The pound rose following the resignation of Prime Minister Keir. This paved the way for Britain to elect its seventh leader in ten years. The pound recovered from earlier losses to reach $1.3243, up 0.06%. Andy Burnham, the former Manchester mayor, is the "favorite" to succeed Starmer. However investors say that a key question facing nervous UK bond markets will be who will become finance minister. The euro fell 0.38%, to $1.1424 after hitting a low of $1.1418 on Friday. The dollar rose 0.14% to 161.51 yen. Only the threat of Japanese interference prevented the currency from reaching its 40-year high in 2024 of 161.96. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.18%. Gold spot rose by 0.76%, to $4192.46 per ounce.
Viva Energy will run Geelong Refinery with no alkylation unit until 2027
Australia's Viva Energy said Tuesday that its alkylation?unit?at the?Geelong Refinery?will remain offline?"and?has?been isolated from refining activities. Fuel retailer Viva Energy expects that the refinery will operate without an alkylation unit until 2027 based on its current assessment of the damage caused by a fire in April. According to preliminary information provided by the company, the fire was caused by a rupture of a section of piping in the alkylation system. The fire that broke out at the largest of Australia's refineries on the 15th April disrupted fuel production as the nation faced fuel shortages because of the war in Iran. Viva stated that the 'unit's' isolation would affect the refinery’s ability to convert liquefied petrol gas (LPG), and 'that options are being assessed to either'repair' or'replace' the unit.
The company said that the work to restart a key residue?catalytic-cracking unit (RCCU), as well as other units, has been completed. These and related units will be returning to service this week.
The 'firm's shares fell as much as 1.9% in early trading to A$2.09, their lowest price since June 16. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
(source: Reuters)