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Sources say that India's Hindustan Copper intends to sell copper concentrate from Chile to Hindalco and Adani.
Hindustan Copper, the state-run copper company, plans to sell copper concentrate from mines that it has acquired from Chilean Codelco?to?Hindalco & Adani in order to satisfy India's increasing appetite for the red metal, according to two sources who are familiar with the matter. Three sources declined to identify themselves because the discussions were confidential. Codelco's secretary of mines in India said that in April, Hindustan Copper, Coal India, and NTPC Mining were in talks to acquire four copper mining block from Codelco. Hindustan Copper had signed a preliminary deal with Codelco last year to look at "mutually advantageous opportunities" in mining and exploration. In May of this year, the company signed a nondisclosure contract with Codelco and appointed an advisor. It did not reply to a comment request. It denied in the past that it was in talks for a joint-venture. Codelco and NTPC Mining & Coal India did not respond immediately to a comment request. The government said that India, which is the second largest importer of refined copper in the world, could have to import between 91% and 97% its copper concentrates by the year 2047. Hindalco is owned by the Aditya Birla Group and is India's largest aluminium and copper producer. Adani, the conglomerate that owns Kutch Copper in Gujarat's western state, claims it is the largest single-location smelter of its kind. Two sources claim that 'due diligence' is being conducted and Hindustan Copper would be open to partnering with Coal India or NTPC Mining for the JV. Sources said that a team of technical experts from Hindustan Copper, as well as executives from NTPC mining?and Coal India, visited Chile in early this year. They added that it would still be a decade until mining and concentrate production could start. The government of India announced last year that it would include a chapter on copper in the free trade talks with Chile to ensure a 'fixed quantity of copper concentrator. India produces around 573,000 tons of refined cobalt annually, but the demand is higher at around 1.8 millions tons.
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Oil prices steady as global stocks rise
As markets waited for Wednesday's key U.S. Inflation data, global equities edged higher on Monday. Oil prices remained largely?steady as Iran announced it was close to a final agreement with Oman that would define new shipping lanes in the Strait of Hormuz. The Stoxx 600 index for Europe rose by 0.1%, while the S&P 500 futures in the U.S. climbed by 0.2%, and the Nasdaq tech-focused index gained 0.4%. Iran announced on Sunday that it was nearing the final stages of a deal to allow Oman transit through the Strait of Hormuz. However, the country reiterated that this waterway will only be reopened once the United States meets other conditions. Brent crude was little changed at $83.50 per barrel, as shipping through strait continued to be a trickle. However, it still remained below the peak price of $126 a barrel in late April. Asian shares rose over night, following Wall Street stocks which reached a record high Friday, after a weaker than expected U.S. job report caused traders cut their bets on Federal Reserve interest rate hikes. Japan's Nikkei gained 2.1% while South Korea gained 0.7%. The MSCI index, which measures global stock prices, rose 0.1% overall on Monday. Mohit Kumar is a senior European analyst at Jefferies. He said, "We remain confident that the Fed will not hike rates this year." The key would be the inflation report this week." The economists polled by? The U.S. consumer price index for July is expected to rise 3.4% on an annual basis in the data released on Wednesday. This compares to a 3.5% increase the previous month. The Core CPI (which excludes volatile energy and food prices) is expected to rise 2.5% from 2.6% last month. If oil prices are contained and continue to fall, the Fed will not need to raise rates. Kumar explained. The Fed futures traders have reduced their bets for a rate increase and now expect a 45% chance that it will happen in September, down from 67% one week ago. Earnings have helped to boost stock markets in recent weeks. Strong corporate earnings are a major factor. Analysts from BofA stated that earnings per share had increased 30% over the past year, even after Alphabet's and Amazon's investment gains were excluded. A 76% EPS beating rate is the highest since 2021. JPMorgan strategists revised their 2026 EPS estimates to $365. This represents a 35% annual increase. They also raised their S&P500 price target from 7,800 to 8,000. It is currently 7,758. This week's earnings are lighter, but still include semiconductor maker Applied Materials and networking equipment maker Cisco as well as cloud infrastructure technology provider CoreWeave. The yields on 10-year Treasuries dropped 1 basis point, to 4.643%. This week the market is expecting $125 billion of new issuance. The currency markets were largely?steady. The euro was just off its seven-week high at $1.156. The dollar gained 0.4% versus the yen, reaching 158.48. Investors were wary about any intervention. A summary of the opinions expressed at the Bank of Japan's July meeting revealed that policymakers were concerned about rising inflation, which could lead to a quicker-than-expected rate of interest rate hikes. This strengthened the case for an increase in September.
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Cost of living in Nigeria is increasing as elections approach
Grace Adama puts on her earrings in her two room flat, before she grabs her bag and leaves for work in Abuja. Her salary of 135,000 naira ($99), nearly double that of the minimum wage in Nigeria, is not keeping up with rising costs. She said, "If I'm paid today my salary will only be with me for one week." "The cost of housing, electricity and living has all gone up." The living standards of millions in Africa's biggest oil exporter have plummeted in the last three years, as President Bola Tinubu has pushed through painful economic reforms including the removal of fuel subsidies, devaluation of the naira and cuts to electricity subsidies. Investors and the government agree that the reforms are essential for pulling the country away from fiscal crisis. They will pay off over time. According to SBM Intelligence, a Lagos-based index that tracks prices for ingredients used to make the dish, Nigerians now pay more than twice as much to make jollof than they did before Tinubu became president. The price of petrol has increased six-fold since the subsidy was removed, as well as because the naira depreciated and oil prices soared. INVESTORS CHEER FOR REFORMS, NIGERIANS BRISTLE World Bank estimates that just over half the?Nigeria population was in poverty in 2012. This is up from 42% in 2022. Investor optimism is in stark contrast to the citizens' struggle under Tinubu. Thys Louw said, "This is probably the most positive investors' view of Nigeria in the past?two decades," a portfolio manager with investment firm Ninety One. "They are taking the harsh medicine now." The gap between Adama and the booming financial markets adds another dimension to a nation already defined by contrasts. There are marble-laden mega-mansions in Lagos, and shacks with tin roofs that house entire families. Tinubu has to convince the voters that they will also benefit from the reforms before the January elections. "I cannot even send money to my elderly mother in Benue state (which is several hours away) ...(. Adama added, "I can't do many things that I used do before." She had reduced her meat intake and moved into a smaller apartment. However, she still relied upon short-term loans for bills. Tinubu’s tenure followed eight years under President Muhammadu Buhari of unorthodox policies, such as import bans for local industry, currency controls, and petrol subsidies. The result was a shortage of imports and a difficult time getting money out of country or foreign exchange. Fuel subsidies also drained $10 Billion from the government's coffers. Nigerian Finance Minister Taiwo Oyedele said at a recent Abuja event that "we were living in fiscal delusion." "We had to stop lying to ourselves in order for the country to'move forward.'" Tinubu's government says reforms are bearing fruit, pointing to the Nigerian stock exchange, up close to 60% this year, the transfer of oil assets to local companies and the 2024 opening of the 650,000-barrel-per-day Dangote oil refinery just outside Lagos. According to the National Bureau of Statistics, capital inflows into Nigeria reached a six-year record of $23 billion, reflecting investor confidence. The Nigerian bourse said that fewer than 5 percent of Nigerian adults invested in the capital markets. Inflows were concentrated in short-term "Treasury Bills" and other financial instruments, which investors could quickly sell in the event of trouble. The key interest rate of the central bank is 26.5%, and businesses and individuals are struggling to obtain affordable loans. Petrol prices in Nigeria average 1,600 naira per litre ($1.18), which is lower than the neighbouring Ghana and Ivory Coast but still too high for those who have been used to cheap fuel being their primary government benefit. Eji Uchenna, a Lagos food seller, said: "The government should lower the fuel prices." His customers are no longer able to afford bulk purchases. SITTING ON GUNPOWDER Federal workers threatened a nationwide strike in June after rejecting a proposed minimum wage of 100,000 naira. SBM Intelligence's June voter sentiment tracking showed that 80% of Nigerians believe the country is moving in a wrong direction. Kidnapping is a major concern, and security is the top priority. SBM's Cheta Nwanze, Chief Executive of SBM, said that anger against Tinubu would not necessarily result in his downfall given the fragmented opposition. Nwanze stated that "the opposition is divided and... the only thing they can do to beat Tinubu, is to be united." Louw said that if the government continues with its current policies, workers will start to reap the benefits as inflation drops, resulting in lower interest rates. Oyedele said that the government needs to do more in order to "ensure prosperity for all Nigerians". When inequality persists, the situation becomes dangerous. "It's like sitting in gunpowder. It explodes."
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Summer heat drives record-early night harvest at Catalan winery
Workers at a winery north of Barcelona, wearing headlamps, and equipped with secateurs, light up vineyards before sunrise -and begin picking grapes as early as 3 a.m. The scorching heat in the region has led to the earliest grape harvest ever recorded. Workers at Gramona in Anoia have started harvesting several weeks before the usual August dates. Businesses and institutions are adapting to climate change after back-to-back extreme heatwaves in Europe. ?Roc Gramona is the technical director of the winery. He said that the?heat caused stress for many people and even medical problems for some. He said: "We had no choice because the temperatures of?35 or 45° Celsius (95-113° Fahrenheit) was too high for them." Gramona said that the heat also stressed out plants, causing grapes to ripen faster. "I don't think we will go back to the daylight harvest. We will continue picking at night." According to Climate Monitor, the average temperatures in Barcelona for July were 5,8 C higher than the historical norm from 1961-1990. David Altes, a labourer, explained that starting early in the morning allows the crews to work at cooler temperatures, and ensures the grapes arrive in the winery?in optimal condition. This year, Gramona started its harvest on July 22. It was the earliest harvest recorded in Catalonia. Chardonnay, Pinot Noir and other varieties are currently being harvested. Both are used to make sparkling wine. (Reporting and writing by Horaci Garca; editing by Lincoln Feast; Javi West Larranaga, Javi West; Javi West; Javi West; Javi west; Javi west; Javi west; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest;?being harvested are Chardonnay and Pinot Noir.
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Romanian nuclear reactor can operate for nine days with Danube water redirected
Romania's 'only working nuclear reactor' can continue to?operate? for another nine days, after rerouting the flow of water from the Danube River in drought-stricken Romania. Romania has declared an energy emergency for the entire month of August, and is asking households and businesses to reduce their consumption during evening peak hours. Energy ministry blew up a rock obstacle, dredged riverbed and sank four barges with rocks in order to create a dam and redirect water flow. This, it said, has raised water levels around reactor by 4 cm (1.57 inch). The ministry stated that based on the forecasts at the moment, this development would allow the reactor to function for at least nine days. The level of water in the Danube near its Romanian entrance remained at an all-time low on Monday. However, the state agency for water management has stated that it expects it to rise from 15 August as rain farther upstream?makes its descent. The Danube's record low water levels have forced the shut down of one reactor. This has affected power production?both in Romania and Hungary upstream. Romania's two nuclear reactors are responsible for 20% of the country's total power production. Romania uses a combination of gas, coal and renewable energy sources to generate electricity. However, it needs billions of Euros in investment for the replacement of ageing facilities and to boost grid interconnections and battery storage. The European Union has agreed that the country will phase out coal and replace it with gas and renewable energy sources in exchange for funds from Brussels. The lawmakers did, however, approve an amendment earlier this month that prohibits the country from closing down coal generation. This would revert reforms, and put at risk access to EU funding. (Reporting and editing by Alexander Smith; Luiza Ilie)
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China's data is more important than Australian strikes in lowering iron ore prices
Iron ore prices eased on Monday as?China's disappointing factory gate data fueled concern over the?demand prospects for the?steelmaking?ingredient. However, a strike in Australia at a major export center curbed some decline. The daytime trading price of the most traded iron ore contract at China's Dalian Commodity Exchange was 713.5 Yuan ($105.79). As of 0820 GMT the benchmark September iron ore traded on the Singapore Exchange was down 0.26% at $94.75 per ton. This is well below a psychologically important level of $100, which has been in place for 15 trading days. China's producer prices inflation eased more -than-expected in July, to its lowest level in three months. Consumer inflation also cooled as global energy prices?retreated despite U.S. and Israel war against Iran. Steel demand is a major driving force at the moment. Analysts at Galaxy Futures stated that domestic steel consumption may be lower than expected in the manufacturing industry. In the wake of Typhoon Dolphin, torrential rain and storms have hit several provinces on China's eastern coast. This has hampered outdoor activities and steel production. Prices were not affected as many workers at BHP’s Port Hedland operation in Western Australia joined the strike on Sunday. This was the first industrial action at the iron ore hub for a quarter century. In the six months to June, 75% of iron ore exports from Western Australia's Pilbara region were shipped through the hub. Investors and traders were watching to see if both parties would reach an agreement soon or if a later escalation would affect supply. Coke and other steelmaking materials, such as coking coal, have risen by 1.43%?and 0.1% respectively. The steel benchmarks at the Shanghai Futures Exchange have been largely weakened. Rebar fell 0.43%, while hot-rolled coils dipped 0.12%. Wire rod also dropped 0.67%, and stainless steel gained 0.31%.
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Gold stabilizes after reaching a seven-week high, US inflation data is looming
Gold prices held steady on Monday, after hitting a seven-week high in the previous session. Markets looked at U.S. inflation figures for new clues about the Federal Reserve's rate hike path. As of 0637 GMT, spot gold was unchanged at $4,346.85 an ounce. After a weak U.S. dollar, prices rose to their highest level since June 17, Friday. nonfarm payrolls data. U.S. Gold Futures increased 0.2% on Monday to $4,406.80. The weak U.S. job data reduced fears of a rate hike in the near future and gave metal a boost. This looks like a natural stabilisation. I expect gold will remain supported above $4,300 in the short term," said Tim Waterer, Chief Market Analyst at KCM Trade. The U.S. economy unexpectedly lost jobs in July, and the previously reported job gains from the previous two months have been revised dramatically lower. The futures market has flipped the odds that a rate increase will occur at the Federal Open Market Committee's meeting on September 15-16 from a more likely-than not chance to a less-than-even possibility. Bullion does not earn interest, so a lower interest rate environment makes gold more attractive than income-generating assets. The Consumer Price Index will be released on Wednesday, and the Producer Price Index on Thursday. Waterer said that "soft readings would strengthen a case for a hold in the rate and open a path to further gold upside. Middle East uncertainty is a persistent risk factor as any renewed escalation which drives up oil prices could quickly pressurize the metal." Iran has said that it is close to a final agreement with Oman, defining new shipping routes between them through the Strait of Hormuz. However, the U.S. needs to meet a number of 'conditions' before the strategic waterway can be reopened. Silver spot rose by 0.9%, to $64.09 an ounce. Platinum gained 0.6%, to $1754.65, and palladium fell 0.3%, to $1374.50. Reporting by Ashitha Shivprasad, Bengaluru. Editing by Subhranshu and Ronojoy Mazumdar.
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Caledonia's quarterly profit increases 16% due to higher gold prices
Caledonia?Mining, a Zimbabwe-based company, reported a 16 percent increase in its second-quarter profits after higher gold prices?helped to offset?lower?grades? and output. Gold miner reported on Monday that the net profit attributable shareholders for the quarter ending June 30 had increased from $20.5 to $23.8 million. The average gold price was $4,259 per ounce in the second quarter of this year, a 34% increase. The company that operates the Blanket mine, in Zimbabwe, reported that the output of the mine fell to?17.360 ounces during the first quarter. This is down from a?21.070 ounces for the same period last year. The decline in production was primarily due to lower recoveries and grades. The mine's output is expected to be between 72,000 and76,500 ounces by 2026. Caledonia announced that construction work at its Bilboes Gold Mine will begin in October. The mine will'start producing in 2028 and reach peak production of 200,000 ounces from 2029. This would make it the biggest gold mine in Zimbabwe. Caledonia raised $150 million in Bilboes financing with a 7-year convertible bond offer in January. Caledonia said that prospective lenders are well 'advanced' in their credit and due diligence processes. Caledonia has maintained its quarterly dividend at $0.14 per share. Reporting by Olivia Kumwenda Mtambo, Nelson Banya and David Gooda. Editing by David Gooda.
South Korea's efforts to expand the AI chip hub outside Seoul will be tested by power and water requirements
South Korea wants to build a new semiconductor hub in the southwest of its country within four years. However, local opposition due to its massive water and power needs will be one of its greatest obstacles.
Honam semiconductor industrial complex, which is estimated to be worth at least 800 trillion won (540 billion dollars), is central to President Lee Jae Myung’s efforts to extend the AI chip boom outside the prosperous Seoul metropolitan region.
Companies involved in the project like Samsung Electronics, however, will have to find new sources of energy to power it, with the goal of establishing it by the time Lee finishes his term in 2030.
Analysts say that the power demand of the four planned chips fabrication plants could be 70% to 80% more than the current annual consumption of electricity in the southwestern regions Gwangju, North Jeolla, and South Jeolla.
Local residents have said they are against plans to build new nuclear reactors or transmission lines, citing the flaws of previous energy infrastructure that they claim failed to win their approval.
Residents claim they were not also consulted on plans to raise an existing dam in order to supply water to the project.
Neal?Won is the principal analyst for S&P Global Energy. He said, "A large amount of power demand has been added to a region which had previously very little."
Experts say that it will be difficult to operate the complex in its full capacity by 2030 without accelerated infrastructure growth.
South Korea's Energy Ministry said that the southwest region has enough power to meet?local demands. If new chip fabs were located in the area, the majority of electricity would be produced locally, eliminating the need for long-distance transmission cables. It said that it would work with local governments to build the power infrastructure before fab operations, and improve public acceptability. This includes placing underground lines in densely-populated areas.
Kim Sung-whan, the Energy Minister, has said that they could also consider building small modular reactors or new nuclear reactors.
BOTTLENECKS FOR INFRASTRUCTURE
The chip cluster project in Yongin near Seoul is a cautionary tale.
Samsung Electronics, SK Hynix and other chip manufacturers have been working to expand their manufacturing capacity in the region. However, projects have faced delays due power and water problems.
Mayor Lee Sang Il said SK Hynix’s first Yongin fabs were supposed to receive 265,000 metric tonnes of water a daily from a dam in another city. But opposition from the residents delayed the process for months. And supplies of power and water from other regions may face similar objections.
He said that the responsibility for calming opposing voices and resolving differences rests with the central government.
The government plans to assist Samsung and SK HYnix?to accelerate construction in Yongin.
Roh Byeong Nam, a farmer in Yeonggwang County, southwest Korea, and co-chairman of the local anti-nuclear alliance, stated that residents would challenge any expansion or?expansion nuclear reactors if necessary through litigation.
Roh stated that "to now talk about building new reactors on top of extending their lifespan is nothing less than declaring Yeonggwang as a nuclear test ground and ultimately a permanent?nuclear-waste site."
Water supply is also complex. The environment ministry estimates that the cluster requires about 650,000 metric tonnes?of water per day. This is more than Gwangju’s daily residential water consumption.
The developers hope to avoid building a large new dam by utilizing reclaimed water and five dam systems. They also plan to raise one of these systems - Dongbok Dam, to ensure an additional 250,000 tons per day.
Kim Kwang Jin, the head of a group of dam-residents near Dongbok said that residents wanted to be consulted.
Kim stated that the construction of a dam would be similar. He estimated that 1,500-1,600 households may be affected directly or indirectly. "They announced this unilaterally, without considering the resident's acceptance."
The ministry of energy said that the dam-raising alternative would minimize environmental damage and relocation when compared to constructing a brand new dam. It will also continue discussions with Gwangju residents and the local government in order to avoid delays due either infrastructure or opposition.
(source: Reuters)