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Australia and New Zealand prepare for heat and fierce winds
The weather in Australia and New Zealand will continue to be hot and windy this week. On Wednesday, the meteorological agencies warned that conditions would worsen over the next few days. MetService, New Zealand's weather forecaster, said that gusts of up to 150 kilometres per hour (93 miles an hour) could be experienced along the South Island’s east coast on Thursday, and as high as 140 kilometres per hour in Wellington, New Zealand’s capital. Authorities warned people to stay inside, avoid traveling and prepare for potential power and communication outages. The warnings come after strong winds and heavy rainfall on Tuesday, which left thousands of people without power. A man was killed in Wellington Park when a branch from a tree fell on him. Winds on Tuesday fanned wildfires in Hawke's Bay, on the North Island and near Kaikoura, on the South Island. Ken Cooper, Assistant National Commander of Fire and Emergency New Zealand, said that 14 buildings were destroyed near Kaikoura. This included five homes. The area remains closed and there are evacuation centres. Officials haven't estimated the size of the fire. FENZ reported that in Hawke's Bay, they were making progress on the four vegetation fires despite the windy conditions. They were also monitoring the weather. The Bureau of Meteorology in Australia said that extreme heat could be a record-breaker across the central regions, bringing heatwaves and increased fire danger. Sydney will reach 39 degrees Celsius on Wednesday. (Reporting and editing by Stephen Coates; Lucy Craymer)
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Celebrities join Prince William of the UK in Brazil to celebrate Earthshot Prize
The Prince of Wales and the former Formula One champion Sebastian Vettel are among the celebrities who will join him at his award ceremony in Brazil next month for his multimillion dollar environmental prize. In 2020, the British heir-to-the-throne established the Earthshot Prize with the goal of finding innovative solutions for pressing environmental issues. The winners of this year's Earthshot Prize will be announced on November 5 at an event in Rio de Janeiro that is sure to attract a lot of attention. The night's performers will include Brazilian musicians Gilberto Gil and Seu Jorge, as well as Canadian pop singer Shawn Mendes, and Minogue, who was selected by William's dad King Charles to be an artist whose song brings him joy. Organisers announced this on Wednesday. Luciano Huck, a Brazilian TV host, will be the event's host. Other presenters include Brazilian gymnast Rebeca André, Brazil's top Olympian Cafu and four-time F1 World Champion Vettel. In 2022, the German driver who was increasingly vocal about sustainability and environmental issues, saying that climate change made him doubt his job, retired. Winners receive cash prizes for their projects Earthshot's CEO Jason Knauf stated that "with two weeks left, we are delighted to announce the support from global artists, performers and Brazilian talent who will be joining us in Rio." The organizers also released a trailer titled "Meet the World's True Action Heroes", which was voiced in Hollywood by actor Matthew McConaughey. Earthshot aims to find innovative solutions to climate change and other environmental issues. Five winners will receive 1 million pounds ($1.3million) each for their projects. William will represent his father at the UN Climate Summit COP30 in Brazil. William has been campaigning on environmental issues since more than 50 years. (Reporting and Editing by Ros Russel)
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Vale expects iron ore production to reach its highest level in 2025 after the strongest quarter since 2018.
Vale, a Brazilian mining company, reported Tuesday that it had achieved its highest quarterly production of iron ore since 2018. It also said that its three main business units are on track to meet the upper bands of their 2025 production targets. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons of steelmaking material during the third quarter. This is a 3.8% rise on an annual basis and the highest production since the final three months of 2018. Vale's performance was boosted both by the record-breaking production in the S11D project, located in the north of Brazil, and the ramping up of other projects. Iron ore production is expected to reach 325-350 million tons by 2025, according to the company. Production totaled 245.7 millions tons in the first nine months. Vale's sales and output report stated that its iron ore and copper businesses are "tracking towards the upper-end of the production guidance ranges for 2025." Sales of iron ore including pellets rose by 5.1% on an annual basis to 86.8 million tons during the third quarter. The realized price of iron fines also increased by 4.2%, to $94.4 per tonne. Reporting by Andre Romani, Sao Paulo; Editing by Natalia Siniawski & Richard Chang
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Prolec JV to be owned by GE Vernova for $5.28 Billion in grid supply push
GE Vernova announced on Tuesday that it will pay $5.28 Billion to purchase the remaining 50% of the transformer maker Prolec GE, as artificial intelligence is driving grid equipment demand. The joint venture partner Xignux will be purchased by a company that is owned equally by cash and debt. This purchase should close in mid-2026 subject to regulatory approvals. The demand for electricity in the U.S. has increased dramatically as Big Tech and Silicon Valley startups compete to scale AI technologies behind services like ChatGPT. According to the U.S. Energy Information Administration, power consumption in 2025-2026 will reach record levels. This is due to cryptocurrency mining as well as increased demand by households and businesses. The CEO Scott Strazik said, "This acquisition is in line with our financial and strategic objectives. It is also beneficial to our customers as it strengthens our presence in North America where the demand for grid equipment has been growing rapidly." Prolec GE was established as a joint venture in 1995 by Xignux & General Electric. It announced earlier this year that it would invest $140 million and create 330 jobs in Goldsboro in North Carolina over the next three-year period, surpassing $300 million of U.S. investments and Mexico investments. About 10,000 employees are employed by the grid equipment manufacturer in seven factories around the world, including five in America. After-hours trading saw a slight increase in GE Vernova shares. On October 22, the company will also report its third-quarter results. Morgan Stanley acted on behalf of GE Vernova as a financial advisor, and Skadden Arps Slate Meagher & Flom acted as legal counsel. J.P. Morgan Securities advised Xignux, and Sidley-Austin served as Xignux's legal counsel.
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Gold drops 5%, but stocks are mostly flat. Earnings are positive.
The major stock indexes were mostly flat on Tuesday. Upbeat results and projections from leading U.S. companies provided some support. Gold prices fell more than 5%, as investors took profit after a recent rally. After conservative Sanae Tachichi was elected Japan's Prime Minister, the yen dropped to its lowest level in a week. The Nikkei stock index closed at a new record high in Japan on Tuesday. Spot gold dropped 5.31%, to $4,123.85 per ounce. This was the steepest percentage decline since August 2020. Prices reached an all-time high of $4,381.21 Monday and have risen by about 60% in this year. U.S. president Donald Trump said he expects to reach a fair deal with Chinese President Xi Jinping next week when they meet in South Korea. He also played down the risk of a conflict over Taiwan. Investor sentiment was also boosted by the prospect of a solution, as well as a deal made between Australia and the United States to supply rare earth minerals. Coca-Cola shares rose after it posted earnings that exceeded analysts' expectations. GM also saw a rise in its share price after raising its forecast for the full year. Michael Green, chief strategy at Simplify Asset Management, Philadelphia, says that the reaction to earnings surprises has been modest. Green stated that "the earnings are better than anticipated as companies continue to grow slightly in terms margins. This suggests (companies have to) be passing on the tariffs or pushing them back onto the Importers." The Dow Jones Industrial Average increased 218.16 points or 0.47% to 46,924.74, while the S&P 500 gained 0.22 points to 6,735.35, remaining essentially unchanged. Meanwhile, the Nasdaq Composite dropped 36.88 points or 0.16% to 22,953.67. The MSCI index of global stocks fell by 0.84 points or 0.08% to 994.85. The STOXX 600 Index rose by 0.21%. The dollar gained 0.81% against the Japanese yen to 151.96. Takaichi, Japan's first woman prime minister and leader in the ruling Liberal Democratic Party, became Japan's premier on Tuesday. Traders bet on Takaichi’s government to muddy interest rate forecasts and increase fiscal spending. Dollar also rose in relation to other currencies. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) was up 0.35% at 98.95. Meanwhile, the euro fell 0.33% to $1.1602. Investors lowered U.S. Treasury rates as they awaited the Federal Reserve's next move. According to market expectations, the Fed could cut rates up to three times in the next six-months, but the European Central Bank is unlikely, when it meets next week, ever to do so. The yield on the benchmark U.S. 10 year notes dropped 2.9 basis points from late Monday to 3.959%. Investor confidence took a hit last week when a series of bad loans in regional U.S. banks sparked concerns about credit risks, which threatened to spread into the wider markets. Risk assets were also affected by the prolonged U.S. shutdown. The oil prices finished higher. Brent crude futures rose by 31 cents or 0.5% to settle at $61.32 per barrel. U.S. West Texas intermediate crude futures expired at Tuesday's settlement and closed 30 cents or 0.5% higher at $57.82. (Reporting and editing by Will Dunham and Zieminski; Additional reporting and editing by Amanda Cooper and Pranav Kashyap in London, and Twesha and Twesha Dhikshit in Bengaluru)
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US wants 1 million barrels for Strategic Petroleum Reserve
The U.S. Department of Energy announced on Tuesday that it was looking to purchase 1 million barrels of oil to be delivered to the Strategic Petroleum Reserve. It is hoping to take advantage of the relatively low prices of oil to replenish the stockpile. Former President Joe Biden's administration sold record amounts from the SPR. This included a 180 million barrel sale in 2022, after Russia invaded Ukraine, one of world's largest oil producers. The reserve has a capacity of 700 million barrels, but currently holds nearly 409 millions. The administration of President Donald Trump has sought to replenish the SPR but has been hindered by the lack of funds as well as the ongoing maintenance of the reserve. It is located in a series hollowed out salt caverns along the Texas and Louisiana coastlines. Pumps, pipes, and other SPR above-ground infrastructure are exposed to salty, corrosive air. Trump's tax-and-spending bill included $171 million to purchase and maintain SPR oil, a much smaller amount than the original $1.3 billion. It is likely that new legislation will be needed to purchase more oil for SPR. Energy Secretary Chris Wright stated that Trump is working with Congress to replenish the SPR. Wright stated that while this process will not be completed overnight, it is an important step towards strengthening our energy security. On Monday, both the Brent international benchmark and the WTI U.S. benchmark had reached their lowest levels since the beginning of May. This was due to record U.S. production of oil and the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies that they would continue with the planned supply increases. WTI crude futures closed Tuesday at $57.82 per barrel, up 30 cents. The deadline for submitting bids to the SPR is October 28. (Reporting and editing by Chris Reese, Lisa Shumaker, and Jasper Ward. Additional reporting by Timothy Gardner.
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Citgo auction: Bidders and creditors fight in US court
Bidders pursue the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum Creditors waiting to receive proceeds from the court ordered auction clashed on Tuesday in Delaware over which offer would be approved at the end of two years. The court is trying its best to finish the auction in order to compensate up 15 creditors for defaults on debts and expropriations that occurred in Venezuela. Citgo Holding, Citgo's parent company, was found responsible for Venezuela's debt in the eight-year long case. Citgo and Venezuela lawyers asked the court to reject the $5.9 billion offer of an affiliate of Elliott Investment Management because of its "low price", which was lower than a rival bid by a subsidiary Gold Reserve, and that the sale process is "defective." An officer in charge of the auction recommended that Elliott's Amber Energy bid be accepted, after previously supporting Gold Reserve. The court's marketing efforts were defended by Robert Pincus, a court officer. Amber's offer, he said, implies an estimated business value of $9.5 billion. It also offers the best combination between price and likelihood that the transaction will be completed. Amber's proposal includes a separate agreement to pay $2.1billion to holders of Venezuelan bonds that have defaulted. The agreement only lasts until early December. Counsels for Amber, Pincus and the Court have asked the court to select a winner as soon as possible. This week, Delaware Judge Leonard Stark heard arguments regarding motions filed by Venezuela or Gold Reserve seeking to disqualify Stark, court officer Pincus, and two advisory firms for alleged conflicts of interest. The court also heard the final arguments about the bids. Nathan Eimer said that Amber's offer "is so low...that it shocks this court's conscience and cannot be confirmed" during the hearing. Gold Reserve asked the court also to reject Amber’s bid in favor of the offer made by its subsidiary, which was about $2 billion more expensive but did not include a payment agreement with the Venezuelan bondholders. CREDITORS V BONDHOLDERS Gold Reserve intends to divide auction proceeds between a greater number of Delaware creditors, rather than settle the bondholders claim. This is because a New York court has yet to resolve the validity of the notes. Matthew Kirtland said that it would be an injustice if a significant amount of money was transferred from the attached judgement creditors to the 2020 bondholders based on a security or pledge instrument which might be invalid. Since the U.S. imposed sanctions on Venezuela in 2019, Citgo severed ties with its ultimate parent, Caracas-headquartered oil company PDVSA, and is now controlled by boards appointed by an opposition-led congress. Both the government of President Nicolas Maduro and the opposition political party reject the auction. The Treasury Department of the United States, which shielded Citgo against creditors in recent years must approve the winner.
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Oliver Bowen, Glencore's global naphtha head, will join rival Vitol sources claim
Four sources said on Tuesday that Oliver Bowen, Glencore's global director of naphtha trade, was set to leave the company for Vitol. He is the latest high-ranking trader to leave the London listed commodities trading and mining firm since recent months. One source said that Bowen would start working at Vitol in November and supervise the European naphtha business of the world's biggest commodities trader. Sources requested anonymity in order to discuss confidential information. Bowen was not available for comment. Vitol, Glencore and Glencore refused to comment. Bowen's departure comes at a time when Glencore is undertaking a wider reorganization in its trading operations after a sharp decline in earnings. The company's core earnings from Glencore’s energy and steelmaking activities trading coal fell to $306 millions in the first six months of this year. This is the lowest amount for the period since 2016. Bowen is the 42-year-old head of Glencore's naphtha trade since at least 2017, says a profile posted on Companies House, the UK government website. Bowen was a UK-based Petrochemical Feedstock Association director from February 2017 until his resignation in April of this year. Alex Sanna is the current Glencore head of oil and natural gas trading. According to a memo sent out by staff, Sanna will be stepping down at the end this year. Maxim Kolupaev will replace Sanna. He was the head of Glencore's oil trading desk over the last six years. (Reporting from Shariq Khan and Robert Harvey, in New York; editing by Lisa Shumaker).
Argentina's lithium hunters downsize as EV shift slows
The Argentine salt flats in South America's lithium triangle have been among the busiest websites for endeavors racing to extract the battery metal needed to power the worldwide shift to electrical cars. Now firms are striking the brakes.
The worldwide lithium sector from Chile to Zimbabwe is struggling due to costs that have actually slumped over 80% because the start of in 2015 on oversupply and weaker-than-expected EV demand. That's gummed up financing and hit revenue margins at miners both large and little.
Reuters interviews with nearly a dozen executives, authorities and experts demonstrate how serious the situation remains in Argentina, and how that is likely to minimize lithium output in the years ahead.
Companies have actually cut personnel, slashed spending and halted exploration jobs, and the plunging worth of lithium possessions has left some companies susceptible to takeover.
Globally, Argentina is the number four lithium producer. It has the second biggest resources of the metal and has actually been a secret area for financiers aiming to secure supply.
We were gotten ready for a rainy day and we discovered a storm, said Juan Pablo Vargas de la Vega, handling director of Australia-based Galan Lithium, which is developing a project in the Hombre Muerto basin in Argentina's northern province of Catamarca.
Galan is going for very first production in the 2nd half of next year, but it has cut its phase one target by around a. quarter from 5,400 lots to 4,000 lots of lithium a year.
The lithium rate capture is shaking up the international market,. putting pressure on miners to cut costs and stimulating more merger. and acquisition (M&A) interest as business try to find. deeper-pocketed backers to ride out the recession. This month mining huge Rio Tinto accepted buy. U.S.-based Arcadium Lithium for $6.7 billion, a deal. that will make it the world's 3rd biggest miner of the metal. 5 experts sought advice from anticipate more M&A, particularly. for early-stage jobs.
For business that aren't producing and have resources in. Argentina, it's really probable that they'll be getting deals,. stated Federico Gay, a lithium expert at Standard Mineral. Intelligence.
Arcadium runs two of the main tasks in Argentina. The. larger area, consisting of Chile and Bolivia, holds more than half. of the world's deposits of the metal, which despite the rate. drop remains a crucial mineral for federal governments and carmakers. worldwide.
Western financiers consider the area to be a geopolitical. safe haven as the United States and Europe put harder controls. on car parts from China, the world's number three lithium. producer.
' STOP SPENDING MONEY'
To be sure, Argentina is still most likely to see a slate of more. innovative projects coming online in the near-term. The hit will. come further down the roadway, denting output price quotes by around. 2026-2028, analysts said.
That could play into a supply shortfall that is anticipated to. struck around completion of the years as need increases for lithium for. EV batteries and energy storage.
We had to make the call to sort of stop investing cash,. stated Jerko Zuvela, managing director of Australia-based Argosy. Minerals, which took a pilot plant in Argentina offline and laid. off the website's employees.
Regional media reported the plant closure cost 140 jobs.
Asked about the reports, Zuvela stated the business reduced its. labor force provided the blockage at the presentation facility, and. altered its focus to building and construction on the commercial plant.
When the huge guys are slowing down their expansion. strategies and cutting down on personnel and operations and so. forth, it's no various for us, he said.
UK-based mining consultancy CRU Group informed Reuters it had. reduced its Argentina production forecast for 2027 by about 10%. and no longer sees the potential for Argentina to surpass. Chile, the world's number two producer, by that year, as it. previously expected.
Lake Resources is looking for authorizations for its Kachi job in. Argentina, however meanwhile this year cut three-quarters of personnel. and put four Argentina lithium possessions up for sale.
CEO David Dickson informed Reuters the business is looking for. financing through equity investment and supply offers, and expects. lithium need to exceed supply by the end of the years. Arcadium in August put some growth prepares in Canada and. Argentina on hold, a move that it stated would help save it $500. million in the next two years.
We should adapt to the realities of the marketplace we discover. ourselves in today and the speed at which we can responsibly. invest capital, Arcadium CEO Paul Graves informed experts when. revealing the cuts.
Argentina stands out for its deep pipelines of tasks. driven by private capital - in contrast to next-door neighbor Chile where. 2 established players, SQM and Albemarle, control the sector.
Argentina had 30 companies in the prospecting, preliminary. expedition and advanced expedition stages throughout its lithium. area as of July, government records show. But that pipeline. could be slowed in coming years as earlier-stage expedition. takes the hardest struck from the recession.
Expedition is really affected by the drop in lithium. prices, Flavia Royon, head of a government-sponsored lithium. booster committee, informed Reuters, including the main hit to output. would likely be from 2028.
In the essential lithium province of Salta, advanced projects from. business including Rio Tinto, Eramet, Posco and Ganfeng, are. progressing, however earlier-stage jobs are getting stuck,. according to Salta Mining Minister Romina Sassarini.
There are at least 6 others coming along that aren't. being developed today, that aren't moving into building and construction and. production because they do not have the financial investment, she told. Reuters. She did not identify the projects she was referring to. Argentina, looking to improve a flagging economy, has lured. financial investment from worldwide firms recently with. market-friendly guidelines. The present government is also. pushing investment incentives consisting of tax breaks and targeted. relieving of capital controls for large projects to gain access to dollars. This in some methods combats the drop of lithium costs, said. Royon, pointing out Rio Tinto, Eramet, Posco and Ganfeng as jobs. that were advanced enough to possibly benefit from the. incentives.
' NO BETTER TIME TO PURCHASE'
The shakeout may be painful, however it has made projects more. attractive to potential suitors looking to pick up deals:. evaluations for lithium business globally have dropped about 60%. to 70% in the in 2015 and a half.
A half-dozen experts and executives pointed to eight. jobs in Argentina that could possibly be targets,. including Argosy Minerals, Galan Lithium and Lake Resources.
There is no much better time to buy assets than today, said. Jose Hofer, a lithium adviser at consultancy SC Insights,. without himself specifying who may be the top targets. In reality, Galan was approached by lithium innovation start-up. EnergyX in August for a $150 million takeover, but declined the. offer. Galan declined to discuss prospective M&A, as did. Argosy.
Many executives were enthusiastic of prices increasing once again-- even. if not to peak levels-- as EV demand got.
Although the exact timing is tough to select, the cost. turn-around is not expected to be any quicker than mid-2025.
The head of one early-stage lithium job in Argentina. that has dealt with financing, who decreased to be recognized,. stated he expected costs to rise by the 2nd or 3rd quarter. of next year, a minimum of enough to start mobilizing the projects.
Nevertheless some experts anticipate low prices to persist through. the first half of 2026.
Argosy Minerals, which plans to build a 12,000-ton per year. facility at the Rincon salt flat in Salta province expects its. capital reserves to be sufficient to money expediency and. engineering works, said Zuvela, the managing director.
As soon as that is done, in about 9 to 12 months, it would. return to the market to see if financing was offered for. construction, he stated.
That's where higher lithium costs most likely require to supply. a reward for investors to come out and support business. like us to develop lithium jobs, Zuvela said.
(source: Reuters)