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Perpetua requests up to $2 billion in loan from US EXIM to fund antimony project
Perpetua Resources announced on Friday that it had filed a formal request with the U.S. Export-Import Bank to receive potential debt financing up to $2 billion for its Idaho antimony-and-gold Stibnite Project. The project was approved for a loan of up to $1.8billion by the EXIM bank in 2024. Perpetua stated that the increase in application amounts reflects an estimated rise in job-years as indicated by the financial updates and basic engineering works completed in the first three months. In afternoon trading, the company's stock was up by nearly 4%. The Pentagon-backed project would be the first antimony mine in the country. Its estimated reserves are 148 million pounds, and the metal is used to make bullets, tanks, alloys, and batteries for electric vehicles. The administration of President Donald Trump has increased efforts to boost the production of essential minerals at home and to increase government funding as part of an overall effort to counter China's near total control of this sector. Perpetua has received the federal permit for the Clean Water Act Section 404 from the U.S. Army Corps of Engineers. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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Focus on next week's rate decision to determine the South African rand rate.
South Africa's currency, which is backed by commodities, was stronger on Friday against a weaker US dollar. This was helped by the higher gold price as investors rushed to the safe haven asset due to concerns over the worsening fiscal situation in the United States. At 1513 GMT the rand was trading at 17.88 per dollar, which is 0.7% higher than the closing price of Thursday. Last time, the dollar index fell by about 0.6% versus a basket currency. South Africa is one of the world's major producers of precious metals, and its currency benefits from higher gold rates. Gold prices rose more than 1% last Friday. Investors in South Africa will be focusing on the interest rate announcement by the South African Reserve Bank next week. In March, it cautiously maintained the rate citing inflationary risk from U.S. president Donald Trump's trade war with the world and the country’s disputed budget. Since then, Trump announced a 90 day pause on country specific tariffs. South Africa's inflation has dropped below the bank target range. And the finance minister has presented a revised Budget, abandoning his initial plan to increase value-added taxes, which was the most controversial element of his two previous attempts. In a research report, Lara Hodes, an economist at Investec, said that she expected rates to stay at 7.50% for the May meeting in accordance with the latest U.S. decision. "However, with inflation significantly below the midpoint in the target range and rand stronger than any time since months ago, it is possible that the MPC could decide to reduce rates by -25bp." The Top-40 Index on the stock exchange was up by 0.3%. Gold Fields, Harmony Gold, and AngloGold Ashanti are South African mining companies that last traded at a gain of about 3%. Sibanye Stillwater gained about 1% following the report of an accident in one of its mines that trapped 260 workers underground. The company reported that 79 miners have so far been brought up to the surface. The National Union of Mineworkers confirmed there had not been any deaths or injuries. The yield on the benchmark 2030 government bonds remained unchanged at 8.885%, a decrease of 1 basis point. Reporting by Sfundo parakozov, editing by Bhargav acharya and Gareth Jones.
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Platinum prices soar to a two-year high due to strong Chinese demand and tighter supply
The price of platinum surged up to a record high in two years on Friday. This was due to the sharp increase in Chinese imports and persistent supply concerns. Investors are also showing renewed interest in this metal, which is used in jewellery, catalytic converters and electronic products. Spot platinum reached its highest level in May 2023 at $1,096.40 an ounce. The metal has risen by 20% this year. Investors are looking at cheaper platinum as opposed to gold, which is why the fundamental support for platinum comes from the prospect of a third annual deficit in supply and increased demand for coins, bars and jewellery. The rise in platinum prices was attributed to speculation after the price broke through the psychologically important $1,000 per ounce level earlier this week. "China was an excellent physical buyer when the price was around $950/oz. A trader said that the spike above $1,000 would mute demand. Data released by the Customs this week shows that China imported 10 tons of platinum during April. This is the highest amount in a whole year, and represents a 47% rise compared to imports in March. Analysts noted that as gold prices reach record highs, investors are moving to platinum because it appears more affordable. Last month, spot gold reached a record high of $3.500.05 per ounce, thanks to strong investment demand and fears about tariff wars. The World Platinum Investment Council said this week that the demand for platinum jewellery has increased in China after a decline of over ten years. Concerns about the primary supply also support prices. In recent years, the price of platinum group metals, which are mainly used to neutralise harmful emissions in vehicles, has been impacted by the expansion of electric cars, reducing margins for miners. According to Metals Focus consultancy, there are still significant above-ground metal stocks. These cover the market deficit, and limit the upside potential for platinum and PGMs, as the demand from the automotive sector continues to decline. Palladium, the sister metal of platinum, fell below $1,000 on Friday after reaching a six-month peak of $1,042.70, on Wednesday. According to Tai Wong an independent metals dealer, its growth was boosted by Honda's move towards hybrids instead of EVs.
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TotalEnergies CEO defends the company against East Africa allegations
Patrick Pouyanne, the chief executive of TotalEnergies, defended his company's involvement in oil projects in East Africa after a U.N. independent human rights expert stated that the French firm must address new allegations of abuses. Michel Forst, Special Reporter on Environmental Defenders, said in a late-Thursday statement that the company should take immediate steps to protect activists connected to the East African Crude oil Pipeline and its associated oilfields. This decision followed the decision of German asset manager Union Investment, which dropped TotalEnergies bonds and shares from their sustainable investment funds due to this issue. Pouyanne spoke out against the East African project's alleged negative impacts on the environment and human rights during the annual meeting of shareholders. He said: "We develop these project with our values and principles, and we are confident of the benefits they bring to the countries and local populations." TotalEnergies, he said, is better suited to undertake projects such as the one in Uganda than other companies that may be less concerned about the environment and human rights. Union Investment announced that it made its decision following a review of a new report by the non-profit Just Finance International, which cited alleged abuses on the Kingfisher Oil site in Uganda as part of the pipeline. Forst stated that TotalEnergies failed to take any effective steps to address abuses of activists. It was "deeply disturbing" to see "it consistently reject the allegations as merely'misconceptions,' about the impact of the projects." Forst, a French company said TotalEnergies is bound by the Aarhus Convention (an agreement protecting the public's right to participate in environmental issues) to ensure that individuals are not penalised or hounded for their opposition to these projects. The company had earlier released a press release saying that it "doesn't tolerate any violence or threats against those who peacefully promote and defend human rights", and reminded those with whom it works of its position. The company said that it had worked with Ugandan officials "to ensure that the police followed due process, treated protesters well and respected their rights while detained". It said that the security team of their local unit monitors anyone arrested, and makes sure that their representatives can visit them. Forst supported the call from Union Investment to conduct an independent investigation of the alleged abuses. He asked TotalEnergies not only to make the results public, but also to act on any shortcomings.
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Ivanhoe disputes Zijin's statement about Congo mine problems
Ivanhoe Mines disputed on Friday the statement made by its Chinese partner regarding problems at their Kakula Copper Mine in Democratic Republic of Congo following seismic activity. Ivanhoe stated that the press release from Zijin Mining mentions '..multiple roof falling and rib-spreading in the eastern part of the mine'. It said "Ivanhoe Mines doesn't agree with this statement". "Preliminary evidence suggests that seismic activity... caused a redistribution underground of forces and caused'scaling,' or rockfalls, from the sides of certain mining areas." Ivanhoe said Tuesday that certain mining operations at the Kakula Underground Mine had been suspended on Sunday. The Kamoa Kakula Mining Complex is Africa's and the world's most important copper mine. The Friday update stated: "The teams are currently focusing on safely repairing the damage to the pipes and cables that support the underground pumping system infrastructure." Zijin Mining Group Ltd. warned earlier Friday in a release that the problems could have "adverse impacts" on the annual production guidance for Kamoa-Kakula complex of 520,000-580,000 metric tonnes in 2025. Last year, the mine produced 437,000 tonnes. Ivanhoe disputed this as well, stating that it could only know if production guidelines would need to change after an investigation. (Reporting and editing by Toby Chopra, Louise Heavens, and Eric Onstad)
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COMEX stocks surpass LME for the first time since 2022
The COMEX warehouses registered with the exchange have seen their copper inventories surpass those on the London Metal Exchange since March 2022. This is because traders are trying to take advantage of high copper prices in the U.S. which could lead to tariffs being imposed on metal imports. Stocks in warehouses of the U.S. COMEX exchange The number of metric tons has risen by 87% since the end February to 174 607 metric tonnes, their highest level in 2018. LME registered warehouses are different. Stocks have fallen to 164 725 metric tonnes, a 37% decrease since the end February. The global reorganization of copper inventories is a result of a directive issued by U.S. president Donald Trump in Feburary to investigate possible tariffs on imports of copper to rebuild U.S. copper production, which is critical for electric vehicles and power transmission. The premium of COMEX copper price over LME is currently $683 per tonne. This spread reached a record high of $1,572 per tonne in March, which highlights the divergence between these two markets. Alastair M. Munro, broker at Marex, said that the price premium attracted metal from other exchanges and caused pressure. In the LME, the spread between cash and the three-month contract of copper is also quite wide. The price of gasoline remains high, which indicates that the supply in the area is tightening due to the withdrawals. This decline is not limited to Western exchanges. China, which is the world's largest copper consumer, also sees inventory declines. Stocks at Shanghai Futures Exchange monitored warehouses This week, the number of metric tons fell by 9% to 98 671.
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Extinction rebellion briefly occupies BNP Paribas' entrance during TotalEnergies protest
Around a dozen climate activists from Extinction Rebellion briefly occupied the lobby entrance of the French bank BNP in Paris, Friday morning. They were protesting against BNP's alleged links with TotalEnergies which held its annual shareholders' meeting that afternoon. Some protesters wearing white masks shouted slogans briefly and tossed fake money around before the police forced them out. Extinction Rebellion stated in a press release that the action was part a campaign to target TotalEnergies, and its partners. The article said that several NGOs were criticizing TotalEnergies for not putting the "Say on Climate", or climate strategy, questions to a vote at the shareholder meeting. It also said that this was part "of the fossil fuel industry’s unabashed retreat on its human- and environmental-related commitments." TotalEnergies announced earlier this year that it would not allow investors to vote on its sustainability report progress and would only consult shareholders if the strategy changes. Instead, the company will hold a debate on climate change during its shareholders meeting. TotalEnergies stated on Friday that it respects the freedom of speech and protest, but also deplores any form of violence. BNP Paribas condemned the "aggressive actions of Extinction Rebellion" and all forms physical violence. BNP Paribas has stated that it is committed to supporting energy transition, and that all new funding that BNP Paribas provides to the energy sector will be almost exclusively allocated to low-carbon sources of energy. TotalEnergies shareholders meeting began on Friday in Paris, La Defense. Extinction Rebellion announced that activists would gather in the afternoon at "a symbolic Parisian location" for a "Counter General Energy Assembly," but did not name the location. Reporting by Lucien Libert and Nicolas Coupe; Writing by GV de Clercq
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TotalEnergies is asked to take action by UN expert on human rights concerns
An independent U.N. expert on human rights said that TotalEnergies should urgently address new allegations of abuses in its controversial oil pipeline project, which is located in East Africa. This was made ahead of Friday's annual shareholders meeting of the French energy company. Michel Forst, Special Rapporteur for environmental defenders, said in a late-Thursday statement that the company should take immediate steps to protect activists connected to the East African Crude oil Pipeline and its associated oilfields. The news broke that German asset manager Union Investment dropped the bonds and shares of the company from its sustainable investments funds. Union Investment announced that it had made its decision following a review of a new report by the non-profit Just Finance International, which cited alleged abuses on the Kingfisher Oil site in Uganda as part of the pipeline. Forst stated that TotalEnergies "failed" to "take effective steps addressing abuses", adding that it was "deeply disturbing" "that instead, the company has consistently rejected the accusations as mere "misconceptions" of the impact of the projects". Forst said that as a French firm, the company was bound to adhere to the international Aarhus Convention, which prohibits any punishment or harassment of individuals who oppose the project. TotalEnergies issued a Friday statement in which it said that it "doesn't tolerate any violence or threats against those who peacefully promote and defend human rights", and reminded those with whom it works of its position. The company said that it had worked with Ugandan officials "to ensure that the Police followed due process, that the protesters were treated well and that their rights were respected during detention". It said that the security team of their local unit monitors anyone arrested, and makes sure that their representatives can visit them. Forst supported the call from Union Investment to conduct an independent investigation of the alleged abuses. He asked Total to not only make the results public, but also to act on any shortcomings.
HSBC Asset Management global head of Sustainability to depart
HSBC announced on Friday that the top executive in sustainable finance at its asset management division will be leaving the company. This is the latest departure from the bank during a period of restructuring under the new chief executive.
Erin Leonard's departure as global head of sustainability for HSBC Asset management follows that of Celine Herweijer who left the bank at the end last year. The bank is reassessing its environmental, social, and governance policies under Georges Elhedery, CEO.
Both before and after Donald Trump's election, there has been a growing pushback in the United States against ESG. HSBC is one of the mid-sized banks that focuses on international corporations. Many financial firms have reduced their commitments to climate change and other issues.
Leonard was the head of HSBC Asset Management’s Sustainability Office. This office, created in 2021, is responsible for managing the sustainable investment efforts and strategy. She was also in charge of the company's diversity, equity and inclusivity initiatives.
A spokesperson for asset manager stated that the responsibilities of this office had been spread across the other businesses in the asset management division.
Other sustainability-related initiatives have been consolidated under the Responsible Investment team led by Cathrine de Coninck-Lopez, the spokesperson added.
Leonard was also a member of Asset Manager's Management Committee, but it is unclear if she was removed from this position. HSBC refused to comment.
Elhedery, who assumed the role of CEO six months ago, has made a significant impact on the bank by cutting the number of senior managers in the bank and restructuring the operating divisions.
By the end of 2026, the bank will have saved $1.5 billion annually. This is equivalent to 8% of its total staff costs.
HSBC angered campaigners by abandoning its goal of reaching zero emissions in its entire business by 2030 due to the slow pace of changes in the real-economy.
The bank said to shareholders that it is committed to becoming a zero-emission bank by 2050. It has also begun to review its emission targets linked to loans and associated policies.
The bank also hired new executives including Danny Alexander, a former UK politician to lead a new unit focusing on infrastructure financing and project finance related to the low carbon transition.
HSBC Asset Management will manage $179 billion by 2024 in ESG and Sustainable Investment Strategies. It is a member of the Net Zero Asset Management initiative, a U.N. backed group of asset management companies working to align investment to net zero. (Reporting and editing by Virginia Furness, Simon Jessop, and Nia William)
(source: Reuters)