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Document shows that Vietnam will sign U.S. agreements as trade and energy officials meet.
According to a document from the government, Vietnam is expecting to sign pacts this week with the United States after its trade minister met U.S. energy and trade officials. This step follows weeks of conciliation messages Vietnam sent to Washington, in an attempt to avoid tariffs that the Trump administration may impose on Southeast Asian nations due its large trade deficit with the United States. The document dated March 5, from the Trade Ministry, contains the itinerary of Nguyen Hung Dien, the Minister of Commerce's visit to the United States in this week. The list also included energy companies, government departments (customs, tax, etc.) and asked them to send representatives. Dien, the Minister of Energy and Industry Policy, was announced by the government on its portal last week that he would be traveling to the United States to meet U.S. trade representative Jamieson Greer on Thursday. It did not give any details about possible deals or topics that would be discussed. Officials in Vietnam have indicated publicly that they intend to purchase U.S. LNG for their fledgling industries and possibly revise the duties on a number of imports ranging from ethanol, LNG and agriculture products. The document from the Ministry of Energy and Mines shows that PetroVietnam Gas (a trading firm), PetroVietnam Power (a power generator) and EVN, EVN's power distributor, are all state-controlled energy and gas companies. They were asked to send delegates for Dien's U.S. visit. The meeting is part of a regular series of meetings between U.S. and Vietnamese officials on trade and investment under the Trade and Investment Framework Agreement that was signed in 2007. The document stated that Dien will first meet Greer, then work with officials from the U.S. Department of Energy and witness the signing of "a variety of agreements" on the following day. It added that he would then meet with officials from the Commerce Department and groups of industry "interested in Vietnam". However, it did not specify if these meetings were scheduled according to the times in Vietnam or the United States, which might affect the dates. Reporting by Emily Chow and Francesco Guarascio; Editing, Clarence Fernandez
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Sources say that China's new refinery Yulong will test run its second crude unit by the end of March.
Trading sources familiar with the operation of the plant said that Shandong Yulong Petrochemical, China's newest refinedr, is expected to test operate its second crude oil-processing unit by the end of this month. The $20 billion complex will begin full operation in 2025. This will help China increase its crude imports as well as its production of refined products. It would also offset some of the declines caused by a waning Chinese fuel demand, but put pressure on the already thin refinery profits. The refinery is located on an artificial island in Longkou County of the city Yantai. It's the latest addition to the four large chemical-refining complexes China has built since 2018, as Beijing encourages stronger and bigger manufacturers. Two trading sources have confirmed that Yulong will start up its second crude distillation unit (CDU), which can produce 200,000 barrels per day, around 23 March. The refinery launched its first CDU of 200,000 bpd last September. It was running at around 90% capacity. This level has been maintained by the plant since last November. Three sources have confirmed that Yulong started up an ethylene unit of 1.5 million metric tons per year (tpy), one of two units on the site. One source said that other secondary units, such as the reformer which converts heavy naphtha primarily into petrochemicals, will come online in May. Yulong Petrochemical has not responded to an email request for comment. Yulong increased its purchases of alternative grades of oil from West Africa to prepare for the launch of new units and deal with supply disruptions due to U.S. sanctions. Yulong Petrochemical, a private aluminium smelter, is owned 51% by Nanshan Group. Shandong Energy Group, backed by the provincial government and based in Shandong Province has 46.1%. The remaining shares are held by two local firms.
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Russian rouble stands firm against dollar despite sanctions threats
The Russian rouble reached a record high of more than a week on Monday. This was despite the threat by U.S. president Donald Trump to impose large-scale sanctions against Russia, as Washington tries to push Moscow and Kyiv into negotiating a peace agreement. The rouble has risen against the dollar in this year's exchange rate, mainly due to expectations that improved relations between Moscow Washington could lead to a resolution of conflict in Ukraine and a possible easing of sanctions. The rouble reached its highest level since February at 0841 GMT. It was trading up 1.5% to 88.62 dollars on the over-the counter market. Trump, who had just halted military and intelligence assistance to Ukraine and halted military aid, threatened Moscow on Friday with tariffs and banking restrictions. He also expressed a conciliatory attitude towards President Vladimir Putin's military tactics and has offered an alternative view. On Monday, Russian troops advanced in the Kursk area. Denis Popov, analyst at Promsvyazbank, said: "We don't believe that the U.S. authorities' threats of harsher sanctions and negative rhetoric will quickly escalate because negotiations with Russia are still in their initial phase and the Russian authorities are willing and able to negotiate." The rouble rose 0.5% against the Chinese Yuan, which is the most commonly traded currency in Russia. Brent crude oil was down by 0.1% to $70.28 per barrel, the global benchmark. (Reporting and Editing by Bernadettebaum)
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Fitch gives a negative rating to India's Adani Energy due to US probe risk
Fitch Ratings assigned a negative outlook for the Indian energy infrastructure firm Adani Energy Solutions Limited. The rating agency cited concerns about corporate governance as well as potential risks due to ongoing U.S. investigation. The group called the charges "baseless" and said that they were taken months after U.S. officials accused billionaire Gautam Adani, and top Adani Group executives, of paying $265,000,000 in bribes to win Indian power contracts. They also accused them of misleading U.S. Investors during fundraising. Fitch stated on Sunday that the negative findings of the U.S. investigation could lead to a weakening of governance standards, and a possible downgrading of the rating for the company in the short-to-medium term. The rating agency warned that it could reduce the rating if investigations result in regulatory penalties, restrictions or a loss of confidence on the market. Fitch removed the firm from its "rating watch negatively" list. It said that risks related to its funding and liquidity had moderated. Fitch also affirmed their rating of Long-Term Issuer Default Rates in Foreign and Local Currency at 'BBB+'. Fitch stated that while Adani Energy is an independent company, the governance issues at Adani Group could still affect its access to capital markets and liquidity.
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Iron ore prices fall on fears about demand outlook
Iron ore futures prices fell on Monday, as concerns over U.S. Tariffs and China's promise to reduce crude steel production this year clouded the demand outlook. The May contract for iron ore on China's Dalian Commodity Exchange has erased gains and ended daytime trading 0.71% lower, at 769 Yuan ($105.92). As of 0735 GMT, the benchmark April iron ore traded on the Singapore Exchange had fallen below the psychologically important level of $100 per ton to $99.8. Investors, who hoped to see more support measures from Beijing after the latest disappointing inflation figures, calmed down and pared back their gains. China's consumer prices index fell in February at the fastest pace in 13 month, while producer prices continued to deflate. This has raised hopes that China will continue its stimulus program in order to reach its annual economic target for this year. The upcoming 25% tariffs for all steel imported to the U.S. have clouded the demand outlook and dampened sentiment. Iron ore prices are also under pressure due to the growing fear that Beijing may announce specific measures within the next few weeks, after promising to cut its crude steel production this year in order to combat the overcapacity plagued the industry. Iron ore consumption will decrease if steel production is reduced. Coking coal and coke, which are used to make steel, also fell in price, by 1.35% each and 1.97% respectively. The Shanghai Futures Exchange has seen a decline in most steel benchmarks. The rebar fell 1.35%; hot-rolled coil dropped 0.89%; wire rod was down 1.41%, while stainless steel gained 0.45%. ($1 = 7,2605 Chinese Yuan) (Reporting and editing by Sherry Jackson, Lewis Jackson and Amy Lv)
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Indonesia increases royalties for mining companies
The Indonesian mining ministry has said that it is looking at increasing the royalties mine companies pay for commodities such as nickel, copper, and coal. The proposal was made as Indonesia's newly formed government plans to make major budget changes, including the introduction of a free lunch program for schoolchildren. According to a YouTube video of a Saturday public consultation about the proposed changes, the ministry's Tri Winarno stated that the goal is to improve the governance of the industry. Indonesia is rich in natural resources. Mining is one of the major sources of income. The world's largest exporter of nickel and thermal coal products, Indonesia is also a major supplier of tin and cadmium for the global market. Officials at the public consultation proposed that royalty rates be raised by producers and miners of metal products, based on prices. They also suggested introducing progressive rates, such as nickel and copper. According to the public consultation document of the Ministry, the government proposes a nickel ore royalty rate ranging from 14% to 19%, depending on the benchmark price level, as opposed the the 10% flat rate currently charged. This document also contains proposals for nickel matte and Ferronickel at progressive rates. The government will raise coal royalty rates up to 13.5% if the benchmark price is at least $90 a metric tonne. The government charges progressive royalties for coal. The lowest rate is 8% when the price of a ton of coal is at least $90. The proposal proposed increasing the royalty rate on copper ore from 5% to 10%-17%. It also included increases for copper cathode and concentrate. The proposal included increases in royalties for tin as well as gold, platinum, and silver. (Reporting and editing by Jacqueline Wong, Aidan Lewis and Bernadette Christina Suroyo)
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JX Advanced Metals raises $ 2,97 billion by setting IPO price at the upper end of its marketed range
JX Advanced Metals (a unit wholly owned by Japan's Eneos Holdings) raised $438.6 billion through its initial public offering, after the shares were priced above their market range. The company valued its initial public offering (IPO) at 761.3 billion Japanese yen, or 820 yen each share. The Tokyo Stock Exchange will debut the shares on March 19. According to LSEG data, the offering is larger than Tokyo Metro's IPO from October and is Japan's largest listing since SoftBank's Telecoms Unit in 2018. JX Advanced Metals, a leader in the manufacture of sputtering target materials that are used to produce thin metal films for chip production. After suffering massive impairment losses due to its investment in and operation of Chile's Caserones copper mining, the metal company has changed its focus, from mining and smelting, to supplying advanced material, with a particular emphasis on semiconductor parts. It will continue to mine and smelt to ensure the availability of essential metals such as tantalum that are needed for advanced materials. Eneos Japan, the largest oil refinery company in Japan, intends to use the proceeds to increase shareholder returns and for growth investments.
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Palliser calls on Rio Tinto for unification of dual listed structure
Palliser Capital, a London-based hedge-fund, sent a letter to Rio Tinto's chairman on Monday. The letter urged Rio Tinto to take further steps towards unifying the dual-listed structure after an appraisal report. The letter highlighted findings from an appraisal report that concluded "the advantages of unification far outweigh" the disadvantages for the company and shareholders. Rio Tinto operates under a dual-listed company structure. It has separate shareholders in Australia (Limited) and the UK (Public Limited Company). The company must therefore hold two general meetings each year: one in London, on April 3, and one in Perth, on May 1. Shareholders will vote at these meetings on a resolution that was proposed by Palliser and over 100 shareholders. The resolution calls for a review of current structure which has been described by the fund as "value-destructive" and inefficient. The current listing of the company consists approximately 371.2 millions shares on Australia Stock Exchange, and 1.25 billion on London Stock Exchange. The move is similar to that of BHP Group, which under pressure from activists, ended its dual listing structure in 2022. It now lists primarily in Australia. Rio Tinto's future listing structure will depend on the votes that are cast at the annual general meeting.
BRICS' climate leadership aims hang on healing deep divides
The BRICS' ambitions to play a more prominent role in climate change, following the success of the United Nations' nature talks last month, will depend on how well the countries can overcome their fractious political differences and deep-seated disagreements about money.
Brazil, Russia India China and South Africa – collectively known as BRICS – are well placed to influence the outcome of high-profile conferences this year.
A dozen sources said that they established their credentials when they proposed a draft document which ensured agreement during the COP16 discussions in Rome in February. This could have unlocked billions of dollars for the protection of ecosystems.
Narend Singh said that the BRICS will now influence discussions on other platforms.
South Africa has a newfound profile this year as the G20 president, and another BRICS country, Brazil is preparing to host COP30 Climate talks in November.
Maria Angelica Ikeda said that the BRICS countries can fill a gap in multilateral negotiations at this time.
Susana Muhamad from Colombia, who is the president of the COP16 Nature Talks, stated that the BRICS countries are positioning themselves to be "bridge-builders".
She said, "They're trying to create an balance to represent the Global South before the far-right governments emerging in the U.S.A., Italy and Argentina."
"I know there are a lot countries that want to join BRICS because, if they have to face something like the U.S. then, at least, they're not alone."
Unnamed British officials present at the meeting said that other countries should consider the impact of the BRICS's more aggressive approach on global institutions.
DISPARATE GROUP
If BRICS is to fill the vacuum created by President Donald Trump in the United States, then it must address its internal divisions on politics and finance.
Timo Leiter, distinguished policy fellow at London School of Economics and a former UN official, warned that the group's refusal of taking on the financial obligations of donors could be a major obstacle.
The BRICS countries with middle incomes have so far refused to share their financial liabilities, despite the demands of cash-strapped, developed nations. This has complicated the search for compromise in the U.N. climate negotiations and upcoming discussions on development financing in Seville, Spain.
Data from the OECD revealed that nearly three quarters of the 25.8 billion dollars in funding for biodiversity in 2022 came from five different sources: European Union institutions (EU), France, Germany, Japan, and the United States.
The BRICS may be divided by divergent national interests. For example, Russia wants to keep its fossil fuel sales, while Brazil is pushing countries to accelerate their decarbonisation at COP30.
Li Shuo is the director of China Climate at Asia Society. He said that "they (the BRICS countries) are dramatically different in terms development stage and emission trajectory."
The geopolitical ambitions of both countries are what binds them together, and this leads to the question: Can they agree on a positive agenda?
Analysts said that a test of the group’s solidarity would be at a June meeting in Bonn, where countries will begin to present their COP30 negotiating position.
The Financing for Development Conference in Seville, Spain in June will also be pivotal. Ministers are expected to discuss global sustainability and the ongoing reform of international financial systems.
Leiter stated that "this will be a perfect entry point for BRICS in order to further their goal of changing the world order and having a greater say in the international financial system," he said. The new U.S. role is a kind of gift.
In the short-term, it is likely that the BRICS will renew their demands for a greater say in the Global Environment Facility. The GEF distributes a large portion of biodiversity financing around the world.
GEF reform has become a priority as richer nations cut their development budgets while demanding that nature-rich countries protect ecosystems like the Amazon.
Ikeda, a Brazilian, said: "It is a serious problem that countries are updating their nuclear weapons or purchasing more armaments, instead of directing more money to nature and biodiversity."
"At the Same Time, They Demand More and More Obligations from Us, The Mega-Diverse Countries."
(source: Reuters)