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AFR reports that Rio Tinto is in talks to bailout an Australian aluminium smelter.
The Australian Financial Review reported that Rio Tinto, a global miner, is in discussions with the Australian federal and state government about a multi-billion dollar bailout of its struggling Tomago aluminum smelter located in New South Wales. Citing unnamed sources, the newspaper reported late Friday that discussions centered on a smelter’s electricity contract from 2026-2029, and federal production tax credit. Rio, the New South Wales Premier Chris Minns' office and Prime Minister Anthony Albanese's office did not respond immediately to requests for comments on the report. According to the report, the future of the facility owned by Rio has been uncertain in recent months, due to rising energy costs. Rio, the largest iron ore producer in the world, announced that it would make a decision on the future of the smelter by the middle of the year. This facility, located about 125 km north of the state capital Sydney, uses approximately 10% of New South Wales power to produce 590 000 tonnes of aluminum per year. It is also owned by CSR, Hydro Aluminium and Rio. The centre-left Australian government pledged A$2billion in production credits in January to support the country's aluminium smelters including the Tomago plant to switch to renewable energy before 2036.
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Rex’s Akrake Set for July Drilling Ops off West Africa
Akrake Petroleum, Rex International's indirect subsidiary, has completed the development plan for the Seme field offshore Benin, with the drilling operations scheduled to begin in early July 2025 using Borr Drilling’s jack-up rig.Akrake holds a Production Sharing Agreement (PSA) with the government of Benin for the offshore Block 1 exploration license, which also includes the Sèmè Field.As art of the work-program for Block 1 under the PSA, Akrake is working on the redevelopment of the Sèmè Field.This is a phased development, the first of which will be to bring the field into production, while gathering more data on the subsurface, in order to optimize further development of the field, including heretofore untapped deeper reservoir sections.To this end, the reprocessing of 2007 3D seismic data has been completed, and a detailed field development plan has been finalised.Offshore operations have started, with an ongoing site-survey over the intended drilling and production location.In April 2025, Rex's Lime Petroleum, which owns Akrake Petroleum, signed a contract for Borr Drilling’s Gerd jack-up rig, to be used for an anticipated 120-day drilling campaign in Benin.The rig is scheduled to arrive in Benin later in June 2025, with drilling to begin in early July 2025.Borr Drilling’s Rig Up for 120-Day Drilling Campaign off West AfricaOver the ensuing 100 days, three well-bores will be drilled. The first will be an appraisal well designed to gather new data on deeper reservoir units.Following this, two horizontal production wells will be drilled and completed in the H6 reservoir, in which subsurface analysis has suggested significant remaining reserves, even though there has been previous production.Drilling is expected to be completed in early October 2025, at which time a Mobile Offshore Production Unit (MOPU) will arrive, along with a Floating Storage and Offloading unit (FSO).The MOPU will be hooked to the newly-drilled wells, and production is expected to start in October 2025 at production rates of approximately 16,000 barrels of oil per day (bopd).Contracts have been signed for both the MOPU and FSO, and the MOPU is currently in a yard in Dubai for refurbishment, before heading to Benin in the middle of September 2025.Rex’s Akrake Signs Deal for Production Vessels at Seme Field off BeninAkrake is the operator of the Sèmè Field in Benin, and holds approximately 76% working interest, with the remainder of the working interest held by the government of Benin (15%) and Octogone Trading (9%).
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Indonesia anticipates concluding free trade negotiations with EU by the end of June
Indonesia announced on Saturday that the free trade talks with the European Union which have lasted for nine years are expected to be completed by the end June. Airlangga hartarto, chief economic minister of Southeast Asia's largest economy, met EU Commissioner for Trade Maros Séfcovic on Friday in Brussels. Airlangga Hartarto stated in a press release that "Indonesia has agreed to resolve outstanding issues, and we are prepared to announce the conclusion of substantial negotiation by the end June 2025." He didn't disclose any details about the agreements that may have been made. A request for comment from the EU representatives in Jakarta was not responded to. In terms of total trade, the EU was Indonesia's fifth largest trading partner in 2013. The two countries exchanged $30.1 billion worth of goods and services last year. Airlangga reported that Indonesia had a trade surplus of $4.5 billion. Indonesia and the EU had previously disagreed over the EU's rules on trade for products that could be linked to deforestation, which would affect Indonesian palm oils, as well Jakarta's bans on exports raw minerals. Indonesian officials are motivated to speed up talks on free-trade agreements. They want to diversify their country's export destination as they face the challenges of U.S. Tariffs. In an effort to reduce the U.S.'s trade deficits around the world, President Donald Trump of the United States announced "reciprocal tariffs" that were halted until July. Indonesia faces a tariff rate of 32%. (Reporting and editing by Edwina G. Gibbs; Gayatri S. Suroyo)
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China's central banks purchases gold for the seventh consecutive month in May
The People's Bank of China's (PBOC) official data showed that China's central banks added gold to their reserves for the seventh consecutive month in May. Gold spot prices, which are often viewed as a safe haven from geopolitical and economic uncertainty, remained stable in May, after reaching an all-time peak of $3,500 for one ounce in April. China's gold reserves increased to 73.83 millions fine troy pounds at the end May, from 73.77million ounces ounces ounces by the end April. The PBOC reported that its gold reserves had fallen to $241.99 billion by the end last month from $243.59 at the end April. Gold market experts say that despite the high price of gold, Beijing is still willing to keep adding to its gold reserves despite this. This is due to fears about a tariff war and a 27% increase in 2024. The PBOC has not made public the reasons behind the gold purchases. After an 18-month gold buying spree in 2024, the PBOC paused for six months before resuming gold purchases when Donald Trump was elected president of the United States. Metals Focus, a consultancy, said that central banks around the world are on course to purchase 1,000 metric tonnes of gold by 2025. This would be their fourth massive purchase as they diversify from dollar-denominated investments into bullion. Reporting by Yukun Zhi and Ryan Woo from Beijing, Polina Devlin in London and Brenda Goh from Shanghai; editing by Tom Hogue
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Trump claims that China's Xi has agreed to allow rare earth minerals to flow into the US
U.S. president Donald Trump announced on Friday that Chinese President Xi Jinping had agreed to allow rare earth minerals and magnetics to flow into the United States. This could reduce tensions between world's largest economies. When asked by a reporter on Air Force One if Xi agreed to this, Trump responded: "Yes, he had." The Chinese Embassy in Washington has not responded to a comment request immediately. Trump's comments came a day after he had a rare phone call with Xi to resolve trade tensions which have been brewing for weeks. Then, Trump stated that the talks had "reached a very positive conclusion," adding that there should be "no questions" about the complexity of Rare Earth Products. Two sources with knowledge of the issue said that China granted temporary export licences to the rare-earth suppliers for the three largest U.S. automobile manufacturers. On Monday, the top U.S. aides to President Obama will meet with their Chinese counterparts for more talks in London. Trump said to reporters that "we're very much advanced" in the China deal. On May 12, in Geneva, Switzerland the countries reached an agreement to rollback for 90 days most triple-digit tit-for -tat tariffs that they had imposed on each other after Trump's inauguration. The financial markets, which had been worried about trade disruptions, rallied upon hearing the news. China's decision to suspend the export of magnets and minerals in April has caused supply disruptions for automakers, computer chip makers and military contractors worldwide. Trump accused China of breaking the Geneva Agreement and ordered a halt to chip-design software, as well as other shipments into China. Beijing denied the claim and threatened countermeasures. China could use rare earths and other minerals to exert political pressure on Trump if the economy sags due to companies being unable make mineral-powered goods. Trump, since returning to the White House, has threatened a variety of punitive actions against trading partners. However, he has retracted some of these measures at the last moment. This on-again-off-again strategy has confused world leaders and scared business executives. Trevor Hunnicutt, Leslie Adler, and Edwina gibbs edited the report.
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WTI-Brent Spread at its Narrowest in Nearly Two Years as US Prices Rise
Analysts and traders reported that the spread between U.S. West Texas Intermediate crude and Brent crude futures was at its tightest since September 2023 as U.S. oil prices increased on a declining rig count, and Canadian wildfires cut supply. Brent futures were up 2.75% as OPEC+ increased output, limiting gains. Why it's important A narrower spread can indicate a closed window of arbitrage for traders, and weaker shipping economies to Europe and Asia. If Brent crude premium remains low, the tighter spread could be an early indication that U.S. crude imports are likely to fall in the coming weeks. Since the Dated Brent price is determined by WTI Midland most trading days, the spread between them is more closely correlated with freight rates. By the numbers, the spread between two crude benchmarks was as low as $2.78 per barrel on Friday. A discount of $4 a barrel is usually considered to be the level which encourages U.S. imports into Europe as traders view it as an arbitrage opportunity. According to Phil Flynn of Price Futures Group, the spread has remained below $4 a barrel on average since May 1. This is partly due to concern about U.S. oil production. Since April, OPEC+ members including Saudi Arabia, Russia, and others have increased their production by 1.37 million barrels a day or 62%, of the 2.2 millions bpd that they intend to bring back onto the market. Baker Hughes, the energy services company, said that the U.S. oil rig count fell four times to 559 during the week ending June 6. This is the lowest level since November 2021. It has sparked some concern about future U.S. output. Traders and analysts say that this has created a price which encourages U.S. crude oil to stay on the domestic market. Analysts said that the wildfires in Canada's oil producing province of Alberta, have further boosted U.S. crude prices, as Canadian crude production has decreased by approximately 7%. Sparta Commodities analysts said that the Canadian wildfire season is underway and further disruptions could push WTI/Brent below $3 in the summer. KEY QUOTES Flynn, of Price Futures Group, said: "When you take a look at the WTI/Brent Spread you can see a bit the concern about the leveling off U.S. Production and the tightening up of export barrels."
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Trump approves coal mine expansion for Asia exports
The U.S. The U.S. The Montana-based company can now recover 22.8 millions metric tons federal coal, 34.5 millions metric tons adjacent non-federal coking coal and extend life of the Bull Mountains Mine by nine years. Interior Secretary Doug Burgum is also the co-chairman of Trump's Energy Dominance Council. He said that by unlocking more federally owned coal, it allows the U.S. strengthen ties with its allies overseas. He said that President Trump's declaration of a national emergency in the energy sector allowed us to act quickly, reduce bureaucratic delays, and secure America’s future by ensuring energy independence and strategic trade. Trump declared an emergency on January 20 to accelerate permits, rollback environmental protections and pull the U.S. out of an international climate change pact. Signal Peak sent its initial plan to expand their mining operations to Office of Surface Mining Reclamation and Enforcement (OSMRAE) in 2020. However, it has been subject to federal review and litigation since then. The Interior Department has completed the environmental impact assessment for the mine expansion in accordance with its new policy, which speeds up such reviews by a maximum 28 days. Burgum joined Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin and other energy exports to Asian markets this week in Alaska. Bull Mountains Mine in Montana is located in Musselshell County and Yellowstone County. It employs more than 250 workers, and supplies primarily Japan and South Korea. Environmental groups tried to stop the expansion of this mine due to concerns over its water usage and greenhouse gas emissions. Anne Hedges of the Montana Environmental Information Center said, "It is utter hogwash to think that we must sacrifice our climate, water resources and wildlife to send coal to foreign countries to burn." (Reporting from Valerie Volcovici and Nichola Grroom in Washington; Editing by Barbara Lewis, Matthew Lewis and Matthew Lewis).
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US and China to hold trade talks on June 9 in London
Three of Donald Trump's closest aides are scheduled to meet their Chinese counterparts on Monday in London for talks on resolving a trade conflict between the two world's largest economies, which has been causing global markets to be on edge. U.S. Treasury Sec. Scott Bessent will be represented by the U.S. Trade Representative Jamieson Grer, Commerce Sec. Howard Lutnick, and the U.S. Trade Rep Jamieson Greer in the talks. Trump announced the talks on his Truth Social platform, but did not provide any further details. The identity of the China representative was not immediately known. The Chinese Embassy in Washington didn't immediately respond to an inquiry for comment. Trump wrote that "the meeting should go well." The meeting is scheduled a day after Trump called Chinese President Xi Jinping, in a rare call between leaders amid weeks of brewing tensions over trade and a fight over vital minerals. Trump and Xi have agreed to meet and their staffs will hold discussions in the interim. Both countries face pressure to ease tensions. The global economy is under pressure due to China's control of rare earth minerals, for which it is the leading producer. Investors are also concerned about Trump’s efforts to impose tariffs across the board on products from the majority of U.S. trading partner nations. China has also seen the supply of important U.S. products like chip-designing software cut off. On May 12, the countries reached a 90-day agreement in Geneva, to reverse some of their triple-digit, tit for tat tariffs that they had imposed on each other after Trump's inauguration. The preliminary agreement sparked an international relief rally on stock markets. U.S. indices that were in or near bear-market levels have recovered the majority of their losses. Although stocks rose, the temporary agreement did not address the broader concerns straining the bilateral relationship. These range from the illicit fentanyl traffic to the democratically-governed Taiwan, and U.S. complaints against China's export-driven, state-dominated economic model. Trump, since returning to the White House, has threatened a variety of punitive actions against trading partners. However, he has retracted some of these measures at the last moment. This on-again-off-again strategy has confused world leaders and scared business executives. Beijing views mineral exports in the United States as a way to exert political pressure. If economic growth slows down because companies are unable to produce mineral-powered products, this could lead to domestic political pressure being placed on President Donald Trump. The United States has identified China in recent years as its most important geopolitical competitor and the only nation capable of challenging the U.S. militarily and economically. (Reporting and editing by Costas Pittas, Anna Driver and Trevor Hunnicutt)
Bangladeshi migrants are at risk of abuse after being exiled from the Gulf due to climate change
Climate change forces families abroad to send relatives
Migrants are at risk of sexual abuse, wage denial, and other forms of abuse.
Experts call for better protection in host cities
Tahmid Zami Tahmid Zami
"Vulnerable individuals who are pushed to their limits by climate shocks make a big gamble in order to pay for migration but end up facing abuse," Ritu Bharadwaj said, one of the authors.
The study of Bangladeshi migrants from climate-vulnerable regions who worked in the Gulf revealed that almost all of them had experienced at least one form exploitation, whether it was employer abuse, sexual assault or wage denial.
The International Institute for Environment and Development says that migrants, who are mostly from Saudi Arabia, United Arab Emirates and Oman, become trapped in a "modern form of slavery" when they take out loans or sell land to cover the $4,021 required to find work abroad.
The think tank in London spoke with 648 households about the impact of climate change on those living at the frontline.
On the Move
As the world has become warmer, migration has increased in the last two decades, depriving people of a stable life, future, or reliable income.
In the study, it was found that households in disaster-prone areas were twice as likely to relocate within Bangladesh and 1.6 times more likely than those in less dangerous places to do so. In the last decade, 88% of families sent someone overseas. This is up from just 9% in 2001-2010 or 4% in 1990s.
Bangladesh is the seventh most vulnerable nation to climate change. Disasters such as floods and cyclones are increasing in frequency.
Climate-related disasters cost the economy four times more than they did in 1960-1990. They now amount to $558 millions annually.
The study found that this cost each family living in the disaster-prone coastal region more than $870 per year. This leaves families with less money for necessities of life like food, health, and education.
Farmers, fishermen and small business owners were among those most affected. Their livelihoods were often severely impacted, forcing them into seeking out new opportunities.
Take Pirojpur, a district on the southern coast in Bangladesh that has been hit by cyclones and floods.
Abu Musa, a teacher in Dhaka, said that he sent his brother there to work as a guard because the monsoon last year destroyed his family's crops and fishing.
Many people who moved to other cities faced new problems and risks in their new homes, especially those who had relocated abroad.
According to the study, migrants working in the garment and construction industries in large cities are denied compensation for workplace accidents while domestic workers face beatings or inadequate bedding and food.
Bharadwaj said that migrants who move abroad face greater risks because they are forced to recover their high start-up costs.
The study found that employers often confiscate workers' passports, barring them from leaving their workplace, denying the chance for them to contact family or the embassy.
The survey revealed that women suffer the most. More than 80% of respondents reported abuse such as beatings or sexual harassment by their hosts.
Where to turn?
International Labour Organization (ILO) says that as the number of Bangladeshi migrants to Gulf countries reaches millions, embassies struggle to monitor the conditions or to mount rescues.
The sad thing is that when workers are abused, they don't know who to turn to, said Mohammad Rashed Alam Bhuiyan. He is an assistant professor at Dhaka University, studying climate migrants from Bangladesh.
He said that the government could outsource services such as shelter or health care to private organizations.
Md Shamsuddoha of the Center for Participatory Research and Development in Dhaka, Bangladesh, stated that helping communities reduce climate-related losses could also help to reduce the risk of abuse overseas.
He said that if families received early warnings about disasters and cash assistance, they might be better informed, and more likely to remain.
Experts have also pointed out the complex web of brokers who help migrants find work from the Middle East up to Malaysia.
Bharadwaj, from IIED, says that these middlemen are frequently accused of fraud and deceit. This highlights the need to track migrants better.
(source: Reuters)