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Worries about escalating tensions between the US and Iran cause oil prices to rise
The oil prices rose on Thursday, reaching their highest level in over two months after U.S. president Donald Trump announced that U.S. personnel would be moving out of the Middle East. This sparked fears about the potential disruption to supply if tensions escalated with Iran. Brent crude futures increased 15 cents (0.2%), to $69.92 a bar at 1230 GMT. U.S. West Texas intermediate crude rose 22 cents (0.3%), to $68.37. Brent and WTI both surged over 4% on Wednesday, reaching their highest levels since early April. Trump said on Wednesday that U.S. personnel was being relocated out of the Middle East, because "it could potentially be a dangerous area." He added that the United States wouldn't allow Iran to possess a nuclear bomb. According to U.S. sources and Iraqi ones, it was reported on Wednesday morning that the U.S. will be preparing to evacuate its Iraqi Embassy and allow dependents of military personnel to leave Middle East locations due to increased security risks. Iraq is OPEC’s second largest crude producer after Saudi Arabia. Saudi Arabia is the No. Officials from the United States have said that military dependents can also leave Bahrain. Aziz Nasirzadeh, Iran's minister of defense, said Tehran would strike U.S. military bases in the area if nuclear negotiations fail and conflict with Washington arises. Trump has repeatedly warned Iran of bombings if it fails to reach a new deal on nuclear energy. Oil prices were also boosted by optimism about a possible trade agreement between the U.S.A. and China that could increase energy demand in two of the world's largest economies. The Energy Information Administration reported that crude oil inventories in the United States fell by 3.6 millions barrels, to 432.4 million last week. The analysts polled had predicted a draw of two million barrels. (Reporting and editing by SonaliPaul in Houston, ArathySomasekhar)
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The Information reports that OpenAI has discussed raising funds from Saudi Arabian and Indian investors.
The Information reported Wednesday that OpenAI, the maker of ChatGPT, has spoken to Saudi Arabia's PIF and India's Reliance industries, as well as existing shareholders United Arab Emirates' MGX, about its 40 billion financing. According to the report, people who are familiar with the fund-raising said that the investors could each invest at least hundreds millions of dollars. SoftBank, OpenAI's main financier, is seeking to raise additional funds for its ambitious Stargate infrastructure plan and model development. Two sources familiar with the matter said that OpenAI CEO Sam Altman had met earlier this year with India's Minister of IT and discussed India’s plan to create a low-cost AI eco system. Altman then planned to visit UAE in order to raise funds with Abu Dhabi Investment Group MGX. The Information reported that Microsoft-backed startup had also discussed raising $100 million each at Coatue and Founders Fund for the fundraise. The company also plans to raise $17 billion more in 2027. Could not confirm immediately the report. OpenAI, PIF Reliance Industries MGX SoftBank and SoftBank have not responded to our requests for comment.
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White House official: Trump will sign resolutions that nix California's EV regulations
A White House official confirmed that President Donald Trump would sign three congressional resolutions Thursday, which will bar California's electric car sales mandates as well as diesel engine regulations. This confirms an earlier report, citing auto industry and House aides. Trump signs resolutions of disapproval, under the Congressional Review Act, to block California's landmark proposal to end gasoline-only vehicle sales by 2035. This plan has been adopted and endorsed by 11 states representing a quarter of the U.S. automobile market. Trump will sign a resolution repealing a waiver granted in December by the U.S. Environmental Protection Agency, under former Democratic president Joe Biden. This waiver allowed California to mandate at least 80% electric vehicles by 2035. Sources said that the White House invited a number of auto industry officials to join them at Thursday's signing. Trump will sign a congressional resolution to rescind EPA approval for California's plan to increase the number of zero emission heavy-duty trucks by 2023, as well as another resolution regarding California's low NOx regulation, which is a low nitrogen oxide regulation, on heavy-duty highway vehicles and off-road engines. The historic signing of the bill today is a significant victory for American manufacturers, consumers and energy security in the United States. "We thank President Trump for fulfilling his promise to end these extreme mandates, and to ensure that every American has the freedom to choose their vehicle," American Petroleum Institute CEO Mike Sommers stated. The signing of the agreement is a victory for General Motors and Toyota, as well as auto dealers and other automakers who heavily lobbied to stop the rule. It's also a blow to California, environmental groups, and others who say that the requirement are vital to ensure cleaner vehicles and reduce pollution. GM stated that the move will help align emission standards with market realities. California announced in 2020 a plan to require by 2035 that at least 80% new cars sold are electric, and up to 20% of them plug-in hybrids. California Governor Gavin Newsom said he would challenge the repeals at court. He claimed that the action taken by Congress was illegal and estimated to cost California taxpayers $45 billion more in health care costs. California has been granted more than 100 waivers since 1970 under the Clean Air Act. The Alliance for Automotive Innovation (representing GM, Toyota and other automotive companies such as Volkswagen, Hyundai Stellantis, Volkswagen, Hyundai Stellantis, etc.) had previously praised this repeal. John Bozzella said that the EV mandates never could have been met. In reality, to meet the mandates it would be necessary to divert finite capital away from the EV Transition in order for Tesla compliance credits. The latest measures taken in recent months to target electric vehicles are listed below. Separate legislation passed in May by the U.S. House of Representatives would eliminate a $7.500 tax credit on new EVs. It would also impose a $250 annual fee for EVs to cover road repair costs, and repeal vehicle emission rules intended to encourage automakers to build more EVs. The bill would also phase out EV batteries production tax credits by 2028. Reporting by David Shepardson and Steve Holland; Editing and proofreading by Stephen Coates
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Colombia's Petro has threatened to implement a referendum on labor reform as the deadline for the Congress looms.
The leftist president of Colombia, Gustavo Petro, signed a decree on Wednesday to hold a vote on labor reforms. This was an attempt to get the Senate to take a vote on this issue before the session ends later in the month. The referendum proposal seeks a limit on the number of hours that can be worked in a day, an increase in the surcharge from 75% to 100% for work done on Sundays and holidays and the requirement for drivers to pay social security contributions. The Senate is debating the modified reform of labor after rejecting in May a 12-question referendum version in a close 49-47 vote. Petro claimed that this vote was fraudulent. The current legislative session ends on 20 June. Petro and his Interior Minister, Armando Benedetto, stated that the referendum will be cancelled if the reform passes. To be valid, each measure must be approved by a majority of 13.5 million voters - a third the Colombian electoral roll - in order to hold if voted on. The opposition parties claim that Petro's decree amounts to a coup and violates Colombia's Constitution. It also destroys the separation between the three branches of the government. Analysts warn that, in the meantime, the decree may face legal challenges including at the Constitutional Court. The majority of social and economic reforms promised to Petro, who was elected 2022 on promises to end centuries of inequality in Andean countries, have been rejected by legislators. Colombia will hold presidential and legislative elections in the first six months of 2026. (Reporting and writing by Carlos Vargas, Nelson Bocanegra and Natalia Siniawski. Editing and reviewing by Gabriel Araujo and Kyra Madry.
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CFO of Chile's Codelco says the company will focus on public-private partnership to boost production and finances.
Alejandro Sanhueza, CFO of Chile's Codelco (the world's biggest copper producer), said that the company will increase its public-private partnership efforts in order to improve its finances and develop new projects, as part of efforts to boost production. The energy transition is driving a global demand for copper and Lithium. This has led to a skyrocketing of the market at a moment when Codelco struggles to increase production after it hit quart-decade lows in 2023. The CFO's comments, which are the strongest yet, show that the state-run firm will focus on private funding to boost growth. Sanhueza stated that public-private partnerships would be a "pillar for growth". They are not intended to fund overhaul projects or existing operations, in order to comply with nationalization regulations of the company which prohibit it from accepting private money into its mines. Sanhueza wrote in response that "Greenfield Initiatives (new projects), are an important part of our strategy for growth and a way to continue partnerships with other parties." He added that this would also help to diversify risks. Our exploration partnerships enable us to attract additional financing and production capacity. This allows us to accelerate the value generation using resources that are not available to Codelco. Codelco has also reached agreements with Rio Tinto, BHP and other companies to explore new copper mines. Sources with knowledge in the matter describe these as promising. Codelco has already formed a partnership with Freeport McMoRan in the El Abra Mine and owns a five-percent stake in Anglo American Sur. It also bought a 10% stake from Enami, a small state-owned firm. Sanhueza stated that another goal is the building of joint infrastructure, facilitating access to new technologies, or minimising environmental impacts. Codelco announced a groundbreaking agreement with Anglo American earlier this year. The company claimed that it would increase production of copper by 120,000 tons per year over a 21-year period. Sources claim that the company wants to finalize this agreement by September. Sanhueza stated that the company will also be increasing its own exploration budget, which is expected to increase to an annual average of $150 millions in 2025-2029. Sanhueza stated that Codelco had a large stock of mining assets, which was a privilege for the industry. This collaboration allows us to better utilize these resources which complement our own projects. (Reporter Fabian Andres Cambero, Editing by Alexander Villegas & Sandra Maler).
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World Bank will end nuclear energy ban, but still debate upstream gas
Ajay Banaga, president of the World Bank, said that its board had agreed to lift a ban on financing nuclear energy projects for developing countries. This is part of an effort to meet the growing demand for electricity. Banga sent an email outlining the bank's new energy strategy to its staff following what he described as a constructive meeting with the board. Banga said that the board had not reached a consensus on whether or not the bank should be involved in upstream natural-gas projects. He wrote, "This will need further discussion." In 2017, the global development bank, a lender at low interest rates that lends to countries to build everything from railroads to flood barriers, announced it would cease funding upstream oil projects by 2019. However, it will still consider gas projects for the poorest countries. In 2013, it decided to stop funding nuclear projects. Since taking office as the Bank's president in June 2023 the Banga government has pushed for a change in its energy policy, saying the bank should adopt an "all-of-the above" strategy to help countries meet their rising electricity demands and achieve development goals.
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Sources say Barrick Mining has removed the Mali gold complex production forecast for 2025.
Four sources have confirmed that Barrick Mining removed the Mali gold complex's output forecast from 2025. This is a result of a two-year dispute with West African authorities over a new mining law aimed at increasing revenue. The Loulo-Gounkoto complex, one the Canadian miner’s largest assets in Africa, has been closed since January. This is because the military-led government of Mali blocked gold exports, detained employees and seized 3 metric tons during separate negotiations for a new mining agreement with Barrick. Both sides are hoping to make at least $1 billion in revenue this year, thanks to the record-high gold prices. Barrick's shares are lagging behind those of its peers, and Mali is at risk of repelling investors. Sources spoke under condition of anonymity, as they weren't authorized to speak in public. Barrick's spokespersons and the Mali Mines Ministry did not respond immediately to requests for comment. Barrick's Mali production forecast has not been made public. Morningstar analysts, however, had predicted that Mali would contribute approximately 250,000 ounces by 2025. Jefferies reports that Mali, as a shareholder, requested a court to appoint an interim administrator in May. This would mean Barrick losing control of the mines, which accounted for 14% its total production. On Thursday, a court hearing is scheduled to be held on this matter. Parallel to the court case, negotiations are underway. Two people with knowledge of the situation said that Mali made a concession by allowing Barrick to repatriate 20 percent of its earnings to an international account. This was a concession not granted to any other foreign miner who had recently renegotiated their contracts with the government. Mali and Barrick still have a disagreement over the future handling of disputes. According to a source and a person familiar with the issue, Barrick believes that any new mining contracts should be covered by an international treaty. In the event of disputes in the future, they will be resolved through international arbitration. The threat of a temporary administration has investors worried, according to one source. Even though strong gold prices have helped Barrick increase its global revenue, a provisional government could leave the miner with depleted reserves of gold, they said. Barrick initiated international arbitration proceedings in December against Mali. In May, Barrick asked the World Bank arbitration court to stop court proceedings in Bamako due to provisional administration. Two people who were aware of this development said that the tribunal denied the request. The President of the Arbitration Tribunal for this case declined to comment. Barrick's revenues in the first nine-month period of 2024 were $949 million due to production in Mali. Jefferies estimated in a December report that Barrick's earnings for 2025 would be reduced by 11% if its Mali complex remained idle. This was before taxes, interest, depreciation and amortization. Mali, Africa's largest gold producer, is ranked third in the world. The Malian authorities who seized power through coups in 2020/2021 claim that their current Barrick agreement is unfair. The state has negotiated with other multinational miner companies. Last year, the chief executive of Australian mining company Resolute was held for over a week during negotiations.
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Trump Administration moves to rollback power plant regulations
Lee Zeldin, the administrator of the U.S. Environmental Protection Agency, said that it has proposed to repeal Biden administration rules intended to curb carbon dioxide and mercury emissions as well as other air pollutants from power plants. This is in line with a March promise made by the agency. The announcement is part of President Donald Trump's larger efforts to undo environmental regulations that he sees as unnecessary obstacles to industrial development and increased energy production. Zeldin, at EPA's headquarters, said that "EPA has taken an important step in reclaiming sanity, demonstrating we can protect the environment while growing the economy." Zeldin announced his intention to undo three dozen air and water regulations in March. The announcement on Wednesday focuses on mercury and carbon emissions regulations, and begins the formal process of repealing those regulations. According to a list published by the Environmental Protection Agency (EPA) in April, 47 companies have already been exempted from regulations that limit mercury and air pollutants for their coal-fired plants for a period of two years. This move is designed to avoid power plants being forced to retire due to an anticipated increase in electricity demand in the U.S. linked to a surge of datacenter construction. Zeldin stated that datacenters would consume 10% of U.S. electrical supply in 10 years. This is up from the current 3 to 4% and that additional gas and coal will be required to "make America an AI capital of the World." The Biden administration’s carbon emission regulations for power plants could have reduced greenhouse gasses by 1 billion tons by 2047 and was a key part of their broader agenda in fighting climate change. Nearly a quarter (25%) of the U.S. pollution from greenhouse gases is attributed to the electricity sector. Zeldin stated that, if the rules are finalized, no power plant will be able emit more than what they do today or how much they did one or two years ago. The proposal is divided into two parts. First, it would repeal the carbon emissions standards that were finalized by the Biden Environmental Protection Agency last year. These standards called for reductions in carbon emissions from coal-fired and gas-fired plants. Second, the rule on mercury and air toxin was strengthened and requires continuous monitoring. Environmental groups condemned the proposal, saying it was harmful to public health. Shaun Goho is the legal director of Clean Air Task Force. He said that these proposals were bad for the public health as well as bad for the climate. They are all designed to support some of the most polluting plants in the country. The agency also ignored the benefits of the companies, while focusing on Zeldin's focus on the costs. Charles Harper, Evergreen Action's Senior Policy Lead for the Power Sector, said that eliminating standards from Biden's era would erase $240 billion of climate benefits as well as $120 billion worth of public health savings. The mining industry and some Republican legislators in coal-and gas-producing regions have welcomed the announcement. Rich Nolan, President of the National Mining Association, said, "Today's decision nullifies EPA's two most important air regulations, removing standards that were deliberately unattainable and leveling playing fields for reliable energy sources instead of stacking them against them." Rob Bresnahan is a Pennsylvania Congressman, whose district in the next few years will be home to nine new data centers. He said that repealing power plant regulations will allow more gas plants to become operational to meet the new surge in electricity demand. He said, "The simple truth is that we need more electricity on the grid in order to power everything." (Reporting and Editing by Hugh Lawson, Diane Craft and Valerie Volcovici)
Portugal's mining technique might favour copper over lithium
Portugal's government is finalising a tactical strategy to check out for basic materials critical to the green transition, where copper might handle a. more important role than lithium, the environment and energy. minister said on Monday.
Maria da Graca Carvalho stated Portugal fortunately has lots of. important basic materials for the green shift, such as copper,. which is needed for electrical cars.
Portugal already has the biggest copper mine in the European. Union, operated by Toronto-based Lundin Mining. It also. produces lithium for the ceramics market and has large. deposits of battery-grade lithium that remain in advancement.
We have terrific possible to explore for copper, we currently. have a terrific custom and we will continue to invest, she informed. reporters on the sidelines of a conference.
When looking at important basic materials, we have to think about. lithium, but it is not the only one, nor possibly the most. crucial.
She said the tactical plan ought to be presented on July 22.
Based on this method, we will define the locations of. production for the different critical raw materials, she said,. adding that there may be new concessions.
Europe is aiming to ensure greater security and lower. reliance on imports from nations such as China for materials. important to the green shift.
Portugal's previous government planned to auction licenses. for lithium prospecting in 6 locations in the north and centre of. the country.
However issues about the ecological and social effect. of lithium mining from nature preservation groups and local. communities have actually caused numerous hold-ups to the auction,. at first prepared for 2018.
Asked if the brand-new government means to continue with the. lithium auction, Carvalho mentioned the need to see the last. tactical plan and base any choice on scientific and technical. information.
(source: Reuters)