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Westinghouse looks to old nuclear sites in Italy for small reactors
A company official revealed on Tuesday that the U.S. energy giant Westinghouse has proposed to install small modular reactors in Italy, using sites decommissioned from nuclear power plants. Construction is expected to begin by 2030. The move is in line with the shift in Italy's policy on energy as right-wing Prime Minister Giorgia Melons government looks to revive an industry that has lain dormant since decades. Fabio Presot was the Westinghouse Commercial Sales Manager who made this proposal during a hearing in parliament. Italy has four nuclear sites that are no longer in use. Lorenzo Mottura, the executive of Edison, the Italian branch of French group EDF plans to build two advanced nuclear reactors by 2040 in Italy, he told the hearing. The first plant will be completed by 2035 and the second one by 2040. He added that the first small modular reactors would be available at the end of the decade, and tested in the early 30s. Gilberto Pichetto Fratin, the Energy Minister, announced in October that Italy had been in talks with several groups including Westinghouse, EDF and others as potential partners to create a state-backed nuclear company. After referendums in 1987, 2011 and 2013, nuclear power plants are prohibited in Italy. Fratin, who spoke last week, said that the country plans to finalise by 2027 a strategy to reintroduce the nuclear power nearly 40 years after its ban. The government stated that advanced modular reactors, small modular reactors, and even small modular reactors can help decarbonise Italy's most polluting sectors, such as steel, glass and tilemaking. Reporting by Giancarlo Navach, writing and editing by Francesca Piscioneri
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Ball Corp., a can maker, beats its quarterly profit forecast thanks to lower costs
Ball Corp., a company that makes aluminum beverage cans and other products, beat Wall Street's expectations for the fourth quarter profit on Tuesday, as its cost-cutting efforts helped counter low demand. Ball Corp. has been forced to cut operating costs by a growing number of clients, including Corona beer maker Constellation Brands, who have flagged weak consumer spending. The company has also streamlined its operations, closing down some manufacturing plants and selling its aerospace business to focus on the core business. Some companies have also moved away from plastic packaging, which has helped the aluminum can business. This helped to increase volume, especially in EMEA, where sales increased 11% during the quarter. LSEG estimates show that weak U.S. sales lowered overall sales to $2.88 Billion, a 0.8% drop. This was below the analysts' average estimate of 2.91 Billion. Ball Corp's largest expense, cost of sales, dropped 0.7% to $2.29 Billion. This helped the company beat analyst estimates of 80 cents a share. The company has also predicted a profit increase of more than 10% for the full year, as opposed to market expectations of 12.5%. Analysts say that tariffs may lead to an increase in inflation and a subsequent slump in consumer spending. (Reporting and editing by Shreya Biwas and Savio d'Souza in Bengaluru)
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Sources say Uganda has sent 1,000 additional soldiers to the east Congo, near the M23 conflict.
Four diplomatic and U.N. officials said that Uganda had deployed over 1,000 additional soldiers in east Congo during the past week, near a region where the Kinshasa Government is fighting M23 Rebels. This has heightened fears of regional escalation. Residents reported that they were moving toward the conflict zone. M23, a Rwandan-backed group, recently took control of the regional capital Goma. This is a mineral-rich and anarchic part of Democratic Republic of Congo that was ravaged by wars from 1996-1997 to 1998-2003. According to U.N. reports, the extra Ugandan deployment would increase its numbers in that area - officially backing Congo President Felix Tshisekedi against another rebel force -- to approximately 4,000-5,000. Rwanda has troops in the east Congo. Sources said that Uganda has been assisting Congo in its fight against the Islamist Allied Defence Forces (IADF) since 2021. The new deployment, which included between 1,000 and 2,000 troops, was part of a campaign called Operation Shujaa. U.N. experts report that Uganda also supported the ethnic Tutsi led M23. This is the latest in an ongoing series of Rwanda-backed rebels who have taken up arms on behalf of Congo's Tutsis. Since the weekend, residents in Butembo have reported seeing columns of Ugandan soldiers moving southwards towards the frontline with the M23. The Ugandan army's spokesperson Felix Kulayigye, denied any major new deployments. He said that its forces have changed "their posture to offensive defense", without providing further details. When asked whether more troops were arriving, Congo's Communications minister Patrick Muyaya didn't respond. However, he did stress that the Ugandan soldiers present in the region had the ADF as their priority. Combat against M23 soldiers and Rwandan soldiers is also possible. "There is still a great deal of suspicion surrounding Uganda and what the M23 are doing in general," he said. UGANDA'S 'SURGE' Corneille Nangaa is the head of Alliance Fleuve Congo (an umbrella organization that includes M23 fighters). He said that Uganda did not provide support, but he also didn't expect hostile treatment. Uganda denies U.N. claims that it helped train M23 fighters, and provided the group with a base in which to transport men and weapons. After capturing much of North Kivu Province, the M23 rebels are consolidating their grip on Goma, and have begun moving towards Bukavu a town located 200 km (125miles) to its south. They have stated that they will not take the city after meeting with resistance from Congolese forces and Burundian troops. Uganda and Rwanda entered the east Congo in the recent past to protect their borders, but were accused of looting gold and other natural resources. Zobel Behalal is a senior analyst at the Global Initiative Against Transnational Organized Crime, a think tank. He said that eastern Congo was as important to Uganda's economic future as it was for Rwanda, and Uganda would do whatever it took to protect their interests. "The surge is preparation," he said. He was referring to Uganda’s efforts to manage any conflict spreading so that they could continue to benefit from the wealth and trade that crossed their border. Uganda is helping Tshisekedi’s army to hunt down the ADF, which has ties with the Islamic State and was originally based in Uganda but now resides in Congo. ADF's operations have been disrupted by air and ground attacks, forcing them to flee their strongholds. Muhoozi Kainerugaba has publicly supported Rwandan President Paul Kagame's government and is the son of Uganda's powerful president. In 2022, he called M23 "brothers" who were fighting for the rights Tutsis of Congo. Reporting by David Lewis, Sonia Rolley, Elias Biryabarema, Kampala and Ange Kasongo, Kinshasa. Editing by Andrew Cawthorne.
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WEC Energy profits jump on lower operating costs
WEC Energy Group announced on Tuesday that its profit had more than doubled during the fourth quarter. The utility was able to achieve this due to lower operating costs and increased revenue. Nearly 4.7 million customers are served by the company in Wisconsin, Illinois Michigan and Minnesota. The power companies will benefit from the rise in electricity usage, which is mainly driven by artificial intelligence and data centers. Also, homes and businesses are increasingly using electricity to heat their homes and for transportation. Energy Information Administration (EIA), a U.S. government agency, expects that power consumption will reach new records in 2025. The S&P utility index jumped by 19.6% in the last year. According to a report by the Lawrence Berkeley National Laboratory, the demand for data center power in the U.S. will triple within the next three year period and could consume up to 12% of all electricity in the country. In 2024, residential power consumption rose by 0.5%. Small commercial and industrial electricity consumption rose by 0.7%. Milwaukee-based utility reported total expenses of $1.69 Billion in the fourth quarter. This is down from $1.88 Billion last year. Sales costs also decreased by about 3%, to $738.4 M. The revenue for the fourth quarter increased by about 3%, to $2.28billion from a year ago. WEC reaffirmed that its earnings for the current year will range from $5.17 per share to $5.27 in 2025. This is the same as the analysts' expectations, according to LSEG data. The fourth-quarter net profit of the company rose from $218.5 millions, or 69c per share, to $453.5million, or $1.43, per share. (Reporting and editing by Shailesh Kuber; reporting by Pooja Mnon)
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China restricts exports of strategic mineral
China announced on Tuesday sweeping export controls targeting five metals that are used in defence, clean energy, and other industries. This comes just minutes after the additional 10% tariff imposed by U.S. president Donald Trump on Chinese products went into effect. China's decision to limit tungsten, indium and other metals is its latest attempt to weaponise their dominance over the mining and processing a variety of minerals that are vital for everything from smartphones, electric car batteries, infrared weapons and ammunition. Western companies are scrambling to change their supply chains in order to accommodate those minerals that have been affected by the creeping expansion of these restrictions. Here is a list that Beijing has restricted in some way minerals since 2023. BATTERY, LITHIUM AND GALLIUM PROCESSING TECHNOLOGY China has proposed to restrict exports of certain technology used in the manufacture of cutting-edge batteries and processing critical minerals such as lithium and gallium. The announcement in January did not specify when the proposed amendments, which were open to public comments until early February and could come into effect, might be implemented. ANTIMONY, GALLIUM, GERMANIUM Beijing has banned the export to the United States of three crucial minerals in response to Washington's renewed crackdown on China’s chip industry. China has gradually introduced export licensing schemes for these three metals over the past 18 months. Exports of antimony to major buyers such as Japan, India, and South Korea, which is a strategic metal that's used in solar power equipment, munitions and flame retardants had only just begun three months after the export licenses were issued. China is the world's largest producer of these three metals, and produces or refines half to 90% of the global supply. RARE EARTHS MAGNET TECHNOLOGY China has banned exports of technology for making rare earth magnets in December 2023. This ban is added to the existing ban on the technology used to extract and separate critical materials. Rare earths is a grouping of 17 metals that are used to produce magnets in electronic devices, electric vehicles and wind turbines. While common in the earth's crust, China has mastered the technically difficult and environmentally-harmful refining process. China produces 90% of the world's refined products. GRAPHITE China announced that it will require export licenses for certain graphite products in October 2023 to protect its national security. China is the top producer and exporter of graphite in the world. It also refines over 90% of all graphite to a material used in almost all EV batteries.
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Trump's tariffs are only going to make Nissan even more hurt
Nissan is the Japanese carmaker most likely to suffer from Donald Trump's possible tariffs against Mexico and Canada. Although it is unclear if the U.S. president will actually follow through on his 25% levies, after agreeing on a 30-day break Monday, the blowback for Japan's third largest carmaker would be severe, as the company is currently struggling to turn around, and in talks to merge Honda. Nissan, Toyota and Honda are all the biggest automakers in the U.S. The three Japanese automakers produce some of the most popular U.S.-made models in Canada and Mexico. Analysts and industry experts claim that the tariffs will have a significant impact on all three. Toyota and Honda, however, are more prepared than most to deal with the tariffs. They have the financial resources and the ability to raise prices and pass some of the tariff costs on to consumers. James Hong, Macquarie's head of mobility research, said that Nissan is barely profitable in the automotive industry. The majority of models that Nissan builds in Mexico to export to the U.S. is compact cars such as the Sentra or Kicks. These are aimed at consumers who are cost-conscious and can't afford higher prices. Nissan could be in serious trouble if the tariffs are not removed. If the merger is successful, it could be a burden for Honda too. Nissan did not respond immediately to a comment request. The company stated on Jan. 22, that it was unable to speculate on the impact of potential policy changes. However, it said it would continue to focus on producing quality vehicles. Hong estimates that Nissan's operating profit would be completely wiped out if it didn't take action to respond to the tariffs. For example, re-routing Mexican cars to other markets like Brazil, increasing prices or lowering output. According to S&P Global Mobility, Nissan gets 27% of their U.S. sales through Mexico, while Honda and Toyota get 13%, and 8% respectively. S&P Global Mobility estimates that 43% of Volkswagen's U.S. sales come from Mexico. FRESH BURDEN Trump's decision would make what was once a major advantage for Japan's automakers - a low cost production base close to the U.S. Nissan began manufacturing cars in Mexico in 1966 when it opened the first plant outside Japan. Toyota, Honda, and Mazda followed. Nissan opened its first U.S. plant in 1983, in Smyrna Tennessee. If the tariff is added to the cost of a car that's reasonably priced, the consumer will not want to purchase it. "So, for example, 10% is added to the cost of the car while the remainder is borne by the company," explained an executive from a Japanese automaker who was not Nissan. The executive said that since production in Mexico could not easily be stopped, another option was to sell cars produced there in Latin America and elsewhere. He declined to be named because the matter is sensitive. Hyundai, the South Korean automaker that has no plants in Mexico or Canada, is also aware of the problem faced by Japanese automakers. Hyundai's CFO stated during a recent call that even if Trump introduced tariffs to all markets outside of the U.S. the South Korean automaker does not expect to be as hard hit as its Japanese competitors. A threat of tariffs casts a dark shadow on Nissan's planned partnership with Honda. Christopher Richter, a senior Japan autos analysts at CLSA brokerage said: "This complicates a merger that is already hard to execute." Nissan and Honda will announce further details on their proposed merger by the middle this month. Both companies aim to join forces by 2026. This would be a pivotal moment for Japan's automotive industry, and highlight the danger that Chinese EV manufacturers pose to traditional carmakers. Nissan is also suffering from a slump in sales in China and the U.S. It announced in November that it would cut 9,000 jobs, and 20% of global production capacity. Toshihiro Mbe, Honda's CEO, said that Nissan had to turn around its fortunes before the merger could take place. Honda did not save Nissan. Sources have confirmed that Mitsubishi Motors' junior partner Nissan is considering not joining in the merger. This complicates the plan. The tariffs could not have come at a worse time for automakers, given the global disruption that the industry is facing. CLSA's Richter said that Mr. Trump does not seem to understand the fact that it is impossible to change auto production overnight. "In the interim, they will try to charge the consumer the most they can in order to offset this and eat as less of the tariffs as possible." Reporting by Daniel Leussink, Maki Shiraki. Hyun Joo Ji in Seoul has contributed to the reporting. David Dolan, writer. Mark Potter (editing)
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Marathon Petroleum beats fourth quarter profit estimates on midstream strength
Marathon Petroleum, the top U.S. refining company, beat profit expectations for the fourth quarter on Tuesday. Strength in its midstream segment and in renewable diesel helped offset a decline in refinery margins. The midstream segment of the refiner reported an adjusted core income of $1.71billion in the third quarter. This compares to $1.57billion a year ago, and benefited from accretive contributions made by its newly acquired Utica basin and Permian Basin assets. The MPLX division of the company Buy Tickets Last year, Summit Midstream Partners acquired Utica assets for $625 Million. The company's margin for refining, marketing and sales was lower at $12.93 a barrel, compared to $17.81 a barrel if you compare it with a year ago. The 3-2-1 crack spread is a measure of the quarterly U.S. refinery profit margins. The average price of, has dropped by a third from the previous year, reaching as low as $16.04 in mid-December. According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a quarterly profit of 77c per share, compared to the average analyst estimate of 2c per share. (Reporting from Tanay in Bengaluru, Editing by Tasim Zaid)
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Japan's Sumitomo increases annual profit forecast despite Ambatovy losses
Sumitomo Corporation, a Japanese company, raised its net profit estimate for the fiscal period through March by 6% as higher earnings from overseas power generation and aluminium prices compensated for a loss on its nickel project in Madagascar. The trading house has now increased its guidance to 560 billion yen for the current fiscal year. This is up from the previous guidance of only 530 billion, despite the 6 billion yen losses from the Ambatovy Nickel project, due to unrecoverable investor loans. The net profit for April to December rose by 3% compared with the same period last year, reaching 416.5 billion yen. Sumitomo is struggling to improve profitability and stabilise the production at Ambatovy, a project launched in 2005. The project's value was written down to zero during the fiscal year ending March 31, 2024. This resulted in an impairment loss of 89 billion yen. It warned that if the company needed to raise additional funds to continue operations, it could lead to further impairments if they were deemed to be unrecoverable. Sumitomo holds a 54.17% share in Ambatovy Minerals (a mining company) and Dynatec Madagascar (a refining firm). Korea Mine Rehabilitation and Mineral Resources owns the rest. Ambatovy Project companies have completed all their work. Debt restructuring In December, the debt of lenders was eliminated by a London Court. A spokesperson for the company said that Sumitomo continues to consider all options, including selling Ambatovy. Sumitomo reported that Ambatovy produced approximately 20,000 metric tonnes of nickel from April to December. However, it did not reveal production plans. Instead, the company said it would assess plans following a thorough inspection of the damaged pipeline in September.
Five metals that China has banned from export
China announced on Tuesday export controls targeting five metals that are used in defence, clean energy, and other industries. This comes just minutes after the U.S. President Donald Trump imposed an additional 10% tariff on Chinese products.
What you should know about these metals
TUNGSTEN
Tungsten, an ultra-hard material, is only outdone by diamonds in terms of strength. It is used to produce artillery shells and armour plating, as well as cutting tools.
About 60% of the U.S. production is used to make tungsten carbide. This highly durable material is widely used in construction, metalworking and oil and gas drilling.
China is the world's largest producer and exporter of tungsten, and it produced just under 80% of the global supply by 2023.
According to Project Blue, a UK-based consultancy, China provides 30% of the ex China market, mainly in the form powders used for tooling.
Vietnam, Russia and South Korea are also producers.
According to the U.S. Geological Survey, tungsten hasn't been commercially mined in the United States for at least five years.
China has restricted the production of eight types and methods of tungsten-based products.
INDIUM
Indium, via an indium tin dioxide refined product, is used to make phone screens and television displays. In addition, a separate indium-based product is used in the fibre-optics technology.
Indium demand has increased due to the expansion of 5G cellular networks.
According to the USGS, China, like tungsten is the world's largest producer. It accounts for 70% of global production. In September 2024, about a quarter (25%) of U.S. imports of indium came from China.
Project Blue reports that Japan and South Korea are also major Chinese buyers.
China's new restrictions on indium products and technology are aimed at three specific products.
BISMUTH
Bismuth can be found in alloys, medicines, metalurgical additives and atomic research.
USGS reports that the United States stopped producing primary refined bismuth back in 1997. It is now heavily dependent on imports.
USGS data also revealed that China produced more than 80% of the 13,000 tons bismuth consumed worldwide last year.
South Korea and Laos also produce a lot of tee.
China banned bismuth, and other compounds containing bismuth.
TELLURIUM
Tellurium is a common by-product of copper refinement and used in metallurgy. It's also found in solar panels, memory chip, and other products.
According to USGS, China will produce about three-quarters of the refined tellurium produced in the world by 2024.
According to the USGS, the copper telluride is produced in two refineries within the United States, but it is shipped overseas to be further processed. Tellurium is imported for most products that use it.
China has restricted the export of tellurium and other compounds that contain tellurium.
MOLYBDENUM
Molybdenum mainly is used to harden and strengthen steel alloys to make them more resistant against heat and corrosion. Molybdenum is also used as a catalyst, in petroleum, in lubricants and in pigments.
According to USGS, China will account for 40% of the global production in 2024 compared with 12% for America.
The new restrictions are only applicable to certain molybdenum compounds used in the manufacture of missile components. Customs data shows that China exported 287 tons (about half) of the powder to Japan last year.
(source: Reuters)