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The Australian government claims its environmental protection legislation will benefit business and nature
The Australian government will introduce a bill on environmental protection into the parliament on Thursday. It said that this would help businesses by making approvals of resource and construction projects faster and easier. The center-left Labor party hopes that its legislation will give a boost to an economy geared toward resource extraction. Australia is one of the world's largest producers of metals, coal and gas. The environment ministry released a statement saying that "these vital changes had been waiting five years for delivery, and we have seen our environment going backwards, and businesses losing time and money." The bill will bring Australia modern, balanced environmental laws that are good for both the environment and business. The ministry stated that it would like to have the legislation passed through both chambers of parliament before the end of this year. The centre-right Coalition and the Greens on the left will need to vote together in order for the bill to pass. The Coalition wants a more business-friendly bill, while the Greens want stricter environmental protection. Murray Watt, the Environment Minister, said that he is still in negotiations with both parties and has not decided yet which amendments he will accept. According to the Environment Ministry, the bill was intended to define "unacceptable impacts", and increase penalties for violations. The bill would also create an independent National Environmental Protection Agency to enforce the rules. However, the Environment Minister would still have the final say on whether a project is approved. According to the Ministry, it has promised to make the approval process easier and faster for businesses. This should help reduce the time required to reach a decision.
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US Export-Import Bank to consider $200 million loan for REalloys, a rare earths company
The U.S. Export-Import Bank has sent a letter of intent to Rare Earths firm REalloys for a loan of up to $200,000,000 to fund processing and magnetic facilities. This would be Washington’s latest effort to boost American production of these specialized materials. If approved, the loan could increase U.S. accessibility to magnets that are used in electric cars, cell phones and fighter jets, among other products. These magnets are the focus of a global trade dispute as China is using them to leverage negotiations with the Trump Administration. A letter from September 18 was seen by and shows that privately-held REalloys met the initial requirements for applying for the $200 million EXIM Loan. If approved, the loan would have a repayment period of 15 years, which is longer than what the company would likely have had with private financing. EXIM, the U.S. export credit agency, has confirmed that the letter of intent was received on the same day REalloys revealed the potential loan. In order to qualify for the loan, it was stated in the letter that the project must find customers in the United States to purchase its magnets. The Ohio company formed in 2023 plans to convert rare earths from mined ore and recycled electronics into metal in Saskatchewan. The company signed an agreement in the first week of this month for ore to be sourced from a Greenland mining project that Critical Metals Corp hopes to develop. The metal will then be transported to Ohio where it will be transformed into an alloy, and then into magnets. REalloys will provide details of its costs for both facilities next month. The company aims to produce 10,000 tons of magnets per year by 2029. This is roughly the same amount as MP Materials, which receives price support from the U.S. Government. REalloys did not receive any guarantees regarding price protection. (Reporting and editing by Matthew Lewis in Houston, Ernest Scheyder)
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Reeves, UK's Reeves, looks to early scrapping windfall tax in the oil and gas industry. FT reports
The Financial Times reported that Britain's Finance Minister, Rachel Reeves could eliminate a windfall-tax on the oil and gas sector a year sooner than originally planned. Reeves, it is said, is considering several options in order to achieve her goal of balancing daily spending and tax revenue by the end the decade. The Financial Times reported that she could use her budget for next month to eliminate the energy profit levy by March 2029, instead of March 2030. This was according to people who are familiar with her thoughts. The newspaper reported that Reeves wanted assurances from the energy companies about how such a move could spur new investments, jobs, and future tax revenue. Could not verify immediately the report. In an email, a spokesperson from Reeves’ office stated: "We don't comment on speculation about changes to tax before the Budget." The levy was introduced in 2022, after the surge in energy costs following the Russian invasion of Ukraine. It increased the effective tax rate for North Sea producers to 78 percent. Offshore Energies UK, a UK industry body, has claimed that removing the temporary tax earlier could unlock investment of 40 billion pounds ($53.68billion) across 90 projects. Economists say Reeves could have to break a government promise and increase income tax. This would be a break from the commitment Labour made before the 2024 election to the voters. On Wednesday, Prime Minister Keir starmer declined to commit to his previous promise not to increase taxes. He said that future forecasts will show that the economy is in a much worse state than previously thought. People familiar with the situation said that the British budget watchdog will likely cut its productivity forecasts by more than expected 0.3 percentage points. This could lead to a hit of 20 billion pounds to the public finances. $1 = 0.7451 pounds (Reporting from Sam Tabahriti and Anusha in Bengaluru, Editing by Leslie Adler & Daniel Wallis).
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Mali cancels 90 mining exploration permits due to non-compliance
According to an official order seen by the. Local subsidiaries of Harmony Gold and IAMGOLD as well as Birimian Gold and Resolute Mining are affected. In a statement released on Wednesday, the Mines Ministry said that holders had failed to meet new legal requirements. The decree does give no reasons for the revocation, but it states that the "permits" are "released", allowing the reallocation of the land covered by these permits. The statement stated that "permit holders were required to submit documents in accordance with new mining rules. However, after verification, the authorities found widespread noncompliance." The government has cancelled the permits as a result of this, in accordance with mining legislation. The ministry has not clarified whether companies may appeal or reapply. PERMIT PURGATIONS AND TOUGHER RULES RESHAPE MINING IN AFRICA Guinea, along with several other African nations, has recently reformated their mining sector by canceling dormant permits or those that were non-compliant. Others have introduced stricter regulations in order to increase earnings from natural resource, as part of a larger push to tighten up oversight and regain control over strategic assets. The Mali decree, which was signed by the Mines Minister Amadou Keita in October and reviewed on October 29, cancels all permits for exploration of gold ore, iron ore bauxite uranium rare earths and other minerals between 2015 and 2022. The order lists all the permits affected by location and number, but it does not include the area covered or an estimate of their value. Cora Gold said it relinquished permits in question over two years prior and that no formal notice had been received. The company said that the cancellation was delayed and had no effect on its business. Harmony Gold IAMGOLD Birimian Gold and Resolute have not responded to our requests for comments. Mali is Africa's largest gold producer, and mining is a major revenue source and export. However, recent regulatory crackdowns have hampered foreign investment. Due to disruptions in Barrick's Loulo-Gounkoto Mine, the country's biggest gold asset, industrial gold production is expected to fall short of 2025's target. The military-led government has recently moved to deepen ties with Russia through energy and mining agreements, including a deal to supply 160,000 to 200,000 metric tons of petroleum and agricultural products amid an Islamist-militants-imposed fuel blockade that has crippled transport and forced nationwide school closures. The agreement comes after earlier Russian-backed initiatives, including joint ventures for gold, uranium and lithium and the construction of an state-controlled refinery for gold in Bamako. (Reporting and writing by Maxwell Akalaare Adombila, Editing and Mark Potter and Bill Berkrot).
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Spain commemorates flood anniversary with state funerals, bringing out anger and grief
On Wednesday, one year after deadly floods killed 237 people in Spain's Valencia Region, hundreds of families of victims attended a state funeral, presided by King Felipe. The City of Arts and Sciences, a futuristic building in Valencian, is a popular destination for many people who wear black T-shirts that read: "Their deaths could have been avoided". Carmina is a relative to a flood victim. She said, "We are filled with mixed emotions." "We've been waiting for this ceremony a long time. A collective funeral was needed because it was a death that affected the whole community. "The day is here and we're ready to pay tribute to the people of our country." Some of the attendees chanted insults at regional leader Carlos Mazon. He is being investigated for his role in this tragedy, and he attended the ceremony even though some relatives asked him to stay away. Tens of thousands of Valencians demonstrated on Saturday calling for his resignation. Mazon said to reporters: "Today, is not the time for confrontation. In the days following the tragedy, many Valencians felt helpless. "We tried our best under unimaginable conditions, but it was often not enough." TORCH LIT MARCHES The protesters had covered the central plaza of Valencia earlier in the day with foil blankets. Each one represented a victim. As the night fell, two marches carrying torches and silently marching joined together in Benetusser - one of the Valencia suburbs most affected by floods. Last week, Spanish authorities found victims still buried in mud. The country is dealing with the worst flooding it has seen in Europe for more than 50 years. On October 29, 2024, flash floods caused from torrential rainfall washed away bridges and cars as well as people. They also flooded homes and underground parking lots. In the Valencia region, 229 people were killed and eight more in other parts in Spain. Some protesters and relatives claim that the regional government failed to alert citizens in time during an emergency. They sent a text message warning when many buildings had already been submerged. After a local reporter claimed that she had spent nearly four hours with Mazon at a meeting of emergency services, a court is now investigating his handling of the situation and whereabouts. Mazon refused to reveal the details of his lunch, or the bill for the restaurant. However, he claims he was informed throughout the day over the telephone. On Tuesday, the government approved a loan guarantee of 5 billion euros ($5.8billion) to assist businesses and homes that were affected by floods. More than 8 billion euro has been spent by the government to clean up flood-damaged areas. Heavy rains and flash floods in the area were caused by an isolated high-altitude depression, locally known as a DANA. This is a weather system that can be highly destructive when warm and cold air combine to create powerful rain clouds. Scientists believe that climate change is causing this phenomenon to occur more often.
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Brazil official assures that COP30 will be held in safety after Rio violence
A Brazilian official assured visitors that the events next week in Rio, and other Brazilian cities, linked to COP30, will be safe. The official was attempting to reassure attendees following a brutal police crackdown against a drug gang, which resulted in dozens of fatalities. Public defenders reported on Wednesday that the deadliest police action in Brazil's recent history has killed at least 130 people. Residents found corpses in a favela after finding them overnight. His spokesman stated that U.N. Secretary General Antonio Guterres will be joining Brazilian officials to preside over the summit next month. He urged Brazil, which will also host Brazilian officials, to conduct a swift investigation and ensure any police actions adhered to international human rights laws and standards. Stephane Dujarric, spokesman for the Secretary-General, said: "I can confirm that the Secretary-General is gravely worried by the high number of injuries sustained during an operation yesterday in Rio de Janeiro's favelas." Rio's governor and mayor have both insisted that this violence is part of an anti-crime crackdown and has nothing to do the events of the Rio Summit, which are being held across three cities: Rio, Sao Paulo, and the coastal Amazonian city of Belem. Brazilian police conducted a drill on security in Belem, Brazil, on Tuesday. A finance ministry official told, "The COP30 will be safe for all the tens and thousands of people expected to attend. Joao Paulo De Resende, undersecretary of the Ministry for Economic and Fiscal Affairs said: "I'd say that it's a localized issue; it has nothing whatsoever to do with climate change or the COP." It was a very strange event, even by Brazilian standards. You won't see this happening again in the next few weeks or months. The U.S. Consulate issued a travel advisory for the affected Rio neighborhoods citing "ongoing fights between police and criminal groups." Participants at COP30 who spoke with on Wednesday were unafraid. Rio will host a climate conference for local leaders and the Earthshot Prize of Prince William next week. In Sao Paulo, business and banking officials are meeting to discuss climate financing. Meanwhile, world leaders will gather in Belem in preparation for the COP30 negotiations in November. "We have not changed anything; I am unaware of any business that has reconsidered their plans." Andrew Wilson, the deputy secretary-general of International Chamber of Commerce said that they knew it would be logistically difficult but nothing had changed over the past 24 hours. (Reporting from Simon Jessop at the United Nations and Michelle Nichols in London; editing by Rosalba o'Brien).
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Gold gains slowed after Fed Powell's remarks despite rate cuts
The gold price fell on Wednesday, as the markets digested the comments of U.S. Federal Reserve Chairman Jerome Powell about the future path for policy. This was despite the central banks's reduction in interest rates to a quarter percentage point. As of 3:10 pm, spot gold was up by 0.3% to $3,964.39 an ounce. ET (1910 GMT), following a rise of up to 2% in earlier sessions. U.S. Gold Futures for December Delivery settled 0.4% higher, at $4,000.7 an ounce. The Fed has lowered its overnight benchmark rate, bringing it down to a range of 3.75% - 4.00%. This is the second time this year that the U.S. Central Bank has eased. Powell warned of the dangers ahead at a recent press conference. Powell stated that there were strong differences of opinion about the direction to take in December during the discussions in the committee. He added, "A further reduction in policy rates at the December meeting was not a foregone outcome." The policy isn't set in stone. Gold had a logical response to Powell's attempt to backtrack expectations of a December reduction. "We're already noticing Fed funds futures reducing expectations. This would be dollar-positive and gold-negative," said Peter Grant. Dollar index continued to rise, making greenback priced bullion costlier for overseas buyers. Gold that does not yield is usually more popular in low interest rate environments and times of economic uncertainty. Tai Wong said that the fact that a cut in December is now under question will dampen precious metals' bounce. Donald Trump, the U.S. president, announced a deal on trade with South Korea, and expressed his optimism for a similar truce between him and China's Xi Jinping ahead of Thursday's scheduled talks. Gold is up 51% for the year to date, reaching a record-high of $4,381.21 in October 20. However, it has dropped over 3% this week due, among other things, to easing trade tensions. Silver spot gained 1.7%, to $47.82 an ounce. Platinum was up 0.6%, to $1,595.81, and palladium increased 1.9%, to $1420.05. Reporting by Anjana Anil in Bengaluru, Noel John in New York and Pablo Sinha from Bengaluru. Mark Potter and Alan Barona edited the article.
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Two men sentenced 25 years for plotting to kill dissidents with Iran's backing
In New York, two men who were convicted of murder for hire charges each received 25 years in prison on Wednesday. The prosecution said the convictions stemmed from a failed plot by Tehran to kill a dissident Iranian living in America. Rafat Amirov and Polad Omarova, both 46 years old, appeared before U.S. district judge Colleen McCahon, in Manhattan, dressed in prison garb. In March, a jury found them guilty of five charges, including attempted murder, conspiracy, and money laundering. They were charged with their involvement in a plot to assassinate Masih Aliejad in 2022, a U.S. Iranian and outspoken critic who was a U.S. citizen. McMahon stated, "This was a horrible, terrible crime which has had terrible, horrific repercussions for some very fine individuals." Alinejad spoke in front of the court, with a group of supporters behind her. She said that Amirov and Omarov turned her world upside down, but did not break her. Alinejad, who was leaving the podium, said: "I crossed the ocean to come to America to have a regular life. And I don't." She received applause. The sentences were below the 55-years sought by the prosecution for each of the men and above the 10-to-13-years recommended by the Defense. Amirov's and Omarov's lawyers pleaded for leniency in an effort to minimize their clients ties to Tehran as well as their roles in the plot. Emails seeking comment were not responded to on Wednesday. The prosecution said that Iran's elite Revolutionary Guard Corps had paid Amirov, Omarov, and their associates $500,000 to cover the failed hit on Alinejad who fled Iran in 2009 Iran has denied as false allegations that its intelligence agents sought to kidnap and kill Alinejad. The Justice Department was waging a campaign against what they call transnational repression, which is the targeting of political opponents by authoritarian regimes on foreign soil. Alinejad has been a critic of Iran's laws on head coverings for many years. She has shared videos of women who have violated these laws with her millions of followers. She lived in Brooklyn when the alleged assassination plot was allegedly made. Khalid Mehdiyev was also charged with Amirov and Omarov, and pleaded guilty for attempted murder and illegal firearm possession. The self-proclaimed Russian mob member testified at the trial of Amirov and Omarov, telling jurors that he had tried to murder Alinejad with both men. Mehdiyev, who had an AK-47 in his car and a ski-mask in the trunk of his vehicle when he was arrested in 2022 for staking Alinejad’s house with the AK-47. He is currently awaiting sentencing. (Reporting and editing by Frances Kerry, Nia Williams, and Jack Queen in New York)
After the Fed's move, most Gulf central banks have cut rates by 25 basis point.
The majority of Gulf central banks reduced key interest rates Wednesday, after the U.S. Federal Reserve cut rates by a quarter-point. This was its second rate reduction decision in this year.
Two policymakers disagreed with the Fed's decision on cutting rates by 25 basis point and Chairman Jerome Powell stated that a further cut in interest rates for December is not a given.
Oil and gas exporters in the Gulf Cooperation Council follow the Fed on interest rate changes, as the majority of regional currencies are pegged with the U.S. Dollar. Kuwaiti dinar only is tied to a basket including the U.S. Dollar.
Saudi Arabia, which is the largest economy in the region, has cut its repurchase agreements (repo), or repurchase agreements, rate by 25 basis points to 4.50%, and also its reverse repo rates by 25 basis points to 4%. The central bank of the United Arab Emirates has reduced its overnight deposit rate to 3.9%.
Lower interest rates are expected to boost economic activity in the Gulf and stimulate non-oil growth.
All have launched ambitious programmes to diversify their economies and move away from hydrocarbons. They are also developing sectors like real estate, tourism, and manufacturing that require billions of dollars in funding and investment.
Qatar, Bahrain and Oman followed suit and cut their key rates by 25 basis point. Central Bank of Kuwait held rates at the same level and stated that monetary policy was in line with local economic conditions. (Writing and editing by Andrea Ricci; Rachna uppal)
(source: Reuters)