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Viridis, Australia's rare earths company, secures Canadian funding interest
Export Development Canada has sent a letter of intent to Viridis Minerals Australia for a debt financing up to $100,000,000 for the Colossus Rare Earths Project in Brazil. The company stated that the financing will help with the execution phase. It follows a letter from Bpifrance Assurance Export in France. Rafael Moreno said that the endorsement from Viridis, the managing director of Viridis, could strengthen the role the project plays in diversifying and securing Western supply chains for rare earths. The Colossus Project is located in Minas Gerais, Brazil. It contains Ionic Adsorption Clay deposits. Rare earth elements are weakly bound to clay minerals and this makes extraction easier. Canada's interest in rare earths comes at a time when Western nations such as the United States and Australia are supporting developers of the material to create an alternative supply chain to counter China's dominance over the industry. As the project moves towards funding completion, the company expects final structuring discussions to be progressed with its financial partners in the coming months. Viridis said that the EDC will continue to adhere to its standard due diligence procedures, internal approvals, and project financing conditions. (Reporting and editing by Alan Barona in Bengaluru, Nikita Maria Jio from Bengaluru)
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White House official: Trump will support Russia sanctions bill as long as he has final authority
A senior White House official stated on Monday that President Donald Trump would be willing to sign legislation imposing sanctions on Russia, as long as the ultimate decision-making power remained with him. Trump told reporters on Sunday night that he was "OK" with Republicans working on legislation to impose restrictions on countries that do business with Russia because Moscow failed to negotiate a deal with Ukraine. Trump suggested that lawmakers could add Iran to sanctions measures. Both Senator Lindsey Graham, and U.S. Rep. Brian Fitzpatrick are Republicans. They sponsored legislation to impose restrictions on countries that do business with Russia. This includes buyers of Russia's energy exports. Trump's Sunday comments could be a catalyst for legislation in Congress to advance. The Senate and House of Representatives leaders have not brought the legislation up for a vote, as Trump prefers to impose tariffs instead on goods imported from India. India is the second largest buyer of Russian oil in the world after China. The official responded that Trump would sign the bill if asked if he was ready to support it. He said that last night." The official stated that the White House would insist on specific language to ensure that Trump maintains control over sanctions. The official stated that it was important for the White House and President that the package of sanctions include a clause that gives the president the final decision-making power on sanctions. "So long as this is included, I believe the president will sign the bill." Officials at the White House confirmed that they were continuing to negotiate with Russia about ending the war. "We are definitely working on it. We have so many other things going on that it hasn't been in the spotlight. Reporting by Gram Slattery and Andrea Shalal; editing by Caitlin Nickel and Rod Nickel
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Fibre cement maker James Hardie reports 2% drop in second-quarter profit
James Hardie, a fibre cement manufacturer, reported a 2% decline in its second quarter profit on Tuesday. The company attributed the drop to a weaker single-family housing market and inventory reductions that are ongoing in North America. Nigel Stein will take over as chairman of the board on November 17 after Ryan Lada, who succeeds Rachel Wilson, has been named as chief financial officer. James Hardle cited a challenging business environment. This included a modest decline in net organic sales in the siding and trim segment and a lower manufacturing utilization rate in its North America operations. All of this was compounded by a slowing single-family housing market. The company raised its net sales forecasts for the full year for its siding and trim division. This was its biggest contributor to the quarter. It attributed this increase to stabilised market conditions and normalised inventories. The Dublin-based firm reported a net profit of $154 millions for the three-month period ended September 30 compared to $157 million in 2013. This was a significant increase over the Visible Alpha consensus estimate, which was $144.2 million. The company's siding and trim division is expected to generate net sales of between $2.925 billion and $2.995 billion in fiscal 2026. This is up from the previous forecast range of $2.675 to $2.850. (Reporting and editing by Vijay Kishore in Bengaluru, Adwitiya Shrivastava from Bengaluru)
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Rio Tinto will reduce Yarwun's alumina production by 40% starting in October 2026, to prolong the plant's life.
Rio Tinto, Australia's largest alumina refinery company, announced on Tuesday that it would cut production at its Yarwun plant in Queensland by 40 percent starting October of next year. This will extend the life of the plant to 2035 while allowing time for modernization. Under current production rates, Yarwun’s tailings storage facility, which is used to store mining waste, will reach full capacity in 2031. The company said it had looked into options for a new tailings facility but that the required investment was "substantial" and "not currently economically viable." Rio Tinto stated that the reduction will affect around 180 positions. It added that it was actively working to relocate and reassign employees who are affected. According to the company, about 725 employees work at the refinery. The company stated that the production cut would reduce annual alumina production by approximately 1.2 million metric tons, but assured customers that their needs will not be affected. In 2024, the company expects to produce 7.3 million tonnes. Rio Tinto said that its bauxite mining operations and aluminium smelters would continue to run at full capacity.
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US announces new approach to proxy disputes, seen by activist shareholders as a blow
On Monday, the top U.S. financial regulatory body changed the grounds for which companies can request permission to skip voting on shareholder resolutions. This is seen as making things more difficult for activists who want to force votes about controversial topics like climate change or workplace diversity. The Securities and Exchange Commission announced on its website that it will no longer rule on common proxy objections such as whether or not an activist's request was filed late, or if the filer owns enough shares. The SEC stated that there is an exception if a company claims jurisdictional reasons, such as state law, which gives them grounds to exclude a particular item. Last month, SEC Chairman Paul Atkins - an appointee by President Donald Trump - suggested that many shareholder proposals were improper under Delaware law. According to Erik Gerding of Freshfields, who was the director of the division until last December, the new policy and Atkins views will lead companies to rely on the state exemption when filing their requests. Gerding stated that "this could be the end for shareholder proposals, as we know it," if Delaware courts and the state legislature support Atkins' view. SEEKING RESURANCE Around this time every year, companies begin to ask the SEC Division of Corporation Finance if they can be assured they won't face enforcement action for leaving shareholder resolutions out of their annual meeting ballots. They are granted permission about half of the time. Recent shareholder meetings have been dominated by resolutions addressing topics like workforce diversity and emission, despite the fact that top investors' support has declined in recent years. Fund leaders claim that their support is less needed because companies have recently implemented voluntary reforms on issues of environmental, social, and governance. Republicans have criticized ESG efforts. This year, the agency took other steps to reduce activist influence. Sanford Lewis, a lawyer who represents ESG activist, said that nearly all proposals can be blocked if there is an "extreme attack on shareholder rights". He said that activists might focus on challenging individual directors. A spokesperson for the SEC said in an email that the decision was made "after thoroughly considering staff resources and timing issues, as well as the role of the staff in the shareholder proposal processes." The spokesperson stated that "with over 900 filings and registration statements received during the shutdown of the government, this decision allows staff to focus their attention on transactional issues, such as capital formation and investor safety, which are time sensitive." Caroline Crenshaw - the only Democrat at the SEC - said in a statement that Monday's changes were "more of a gift to the issuers rather than an exercise on resource allocation." It is also an act of hostility towards shareholders.
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Environmental group: Tyson Foods will stop making carbon emission claims
Tyson Foods agreed to cease claiming it would reach zero greenhouse gas emissions by the year 2050, and to stop marketing beef as climate-friendly in order to settle a suit that accused the U.S. Meat Company of misleading consumers. The nonprofit Environmental Working Group announced this on Monday. The Environmental Working Group reported on Monday that companies have been accused of "greenwashing," where they present an image of environmental responsibility to the public. In the lawsuit filed by Environmental Working Group, Tyson's Brazen Beef brand was cited as an example of misleading advertising. The company claimed that this was the only beef product that had received U.S. Department of Agriculture (USDA) approval for a “climate-friendly” claim, by demonstrating a 10% decrease in greenhouse gas emission during the production process compared to other meat. Tyson was accused of misleading consumers by claiming that its beef products are "climate-smart". The lawsuit filed in 2024 also claimed that Tyson had failed to present a plan that would allow it to reach net-zero. According to an agreement with Environmental Working Group, Tyson won't repeat or make new claims until they have been verified by an expert mutually agreed on. Caroline Leary is the chief operating officer and general counsel of the group. She said, "This settlement confirms that consumers deserve honesty from corporations shaping our food systems." A spokesperson for the company said that Tyson Foods did not admit any wrongdoing. The decision to settle was taken to avoid the cost and distractions of ongoing litigation. Tyson, according to the agreement, denied the group’s claims and said that the company had invested over $65 million in reducing greenhouse gas emissions related to its beef products. Letitia J. James, New York's Attorney General, announced this month that JBS USA had agreed to pay $1.1m to settle claims it had misled the public by claiming to have achieved net zero emissions in 2040. A French court ruled in October that oil giant TotalEnergies had misled consumers with a 2021 advertising campaign which claimed it would become carbon neutral by the year 2050. (Reporting and editing by Will Dunham; Tom Polansek)
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Investors focus on US data as gold prices fall
The gold price fell on Monday as a result of the stronger dollar, and investors' reduced expectations for a U.S. rate cut in January. Investors were also awaiting delayed economic data that could provide clues about the Federal Reserve policy. As of 1:45 pm, spot gold was down by 0.3%, at $4,068.37 an ounce. ET (18:45 GMT). U.S. Gold Futures for December Delivery settled 0.5% lower, at $4.074.5 an ounce. Dollar-priced gold is now more expensive for holders of currencies other than the dollar. David Meger said that there is "some choppy trading" on the market ahead of what will be expected to be an avalanche of economic data, now that the U.S. Government has reopened. "Right Now, there is a lower expectation of additional Fed rate reductions, which has dented gold's optimism." The calendar for this week includes the September jobs data, which will be released on Thursday, and the minutes of Fed's most recent meeting, in which it lowered rates by 25 basis points, on Wednesday. A growing number of Fed policymakers are hawkish about rate cuts at the next central bank meeting in December. The CME FedWatch tool revealed that traders are now pricing in a probability of 41% for a rate cut of 25 basis points in December. This is down from 60% last week. Four Fed speakers are scheduled to speak in the afternoon, including Governor Christopher Waller, and New York Fed president John Williams. Gold is an asset that does not yield any interest, so it tends to do well in low-interest rate environments. Analysts at Scotiabank estimate that gold prices will be $3,800/oz in 2026 compared to $3,450/oz currently, citing an uncertain economy and a possible decline in interest rates. Palladium fell 0.9% and platinum 0.2%, while spot silver increased 0.6%. (Reporting from Bengaluru by Pablo Sinha; Additional reporting by Sarah Qureshi, Editing by Shilpa Majumdar).
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EU's EIB will work with Australian Government on Critical Raw Materials
In a statement released on Monday, the European Investment Bank of the EU and Australia's government announced that they would intensify their cooperation in relation to critical raw materials as Western powers struggled to reduce their dependence on China. Except for Japan, Group of Seven and EU countries are heavily or exclusively dependent on China to supply a wide range of materials, from rare earth magnets (REMs) to battery metals. European officials and sources from the industry say that financing is a major obstacle in the efforts of the EU to secure its supply chain for strategic minerals. The EU's list for strategic projects does not receive any financial benefit. On December 3, the European Commission will present an extensive package of economic security. The statement stated that "this declaration is the first of many steps towards enabling EIB support for critical mineral projects in Australia." "It" furthers existing cooperation between Australia and EU across the crucial raw materials value chains - from exploration, extraction to recycling and innovation. Early this year, the EIB created a task force dedicated to supporting project development for critical materials with a goal to double group financing. This year, the G7 led by Canada formed a Critical Minerals Production Alliance, bringing together like-minded nations. In October, they agreed to mobilize both public and private funds to accelerate graphite production, rare earth element production, and scandium. Australia, a country with vast mineral reserves offered to sell its shares in a new strategic stockpile of minerals to G7 countries. Last month the U.S., Australia, and Canada committed $3 billion for mining and processing projects and a price ceiling for critical minerals. This was a long-awaited step by Western miners. Both countries will sign off on financing which includes offtake rights. Canada also signed offtake agreements for graphite and scandium with Australian miner Rio Tinto and Quebec's Nouveau Monde Graphite. (Reporting and editing by Matthew Lewis in Brussels)
Sources: Chevron is a contender to buy Lukoil assets.
Five sources familiar with this process said on Monday that the U.S. oil giant Chevron was examining options to purchase global assets from sanctioned Russian oil company Lukoil. Last week, the U.S. Treasury cleared potential buyers to speak to Lukoil regarding foreign assets. Chevron will join Carlyle, and other firms to compete for Lukoil's portfolio of at least $20 billion.
Last month, the United States imposed sanctions against Russia's two largest oil companies, Lukoil & Rosneft, in an effort by President Donald Trump’s administration to force Moscow to peace talks with Ukraine.
Five sources confirmed that Chevron was looking at options to purchase assets from Lukoil in areas where they overlap, rather than buying the entire portfolio. The sources asked to remain anonymous as they were not permitted to speak with the media. Chevron has never been reported to have an interest.
Chevron stated that it adheres to all laws and regulations relevant to its business. It does not comment on any commercial issues.
Lukoil produces 2% of the world's oil at home, but also abroad. The company has announced that it is looking for buyers of its international assets. These produce 0.5% of oil globally and are valued at $22 billion based on filings from 2024.
Sources told us last week that Carlyle, a U.S.-based private equity firm, is one of the companies exploring options for buying Lukoil’s foreign assets.
Lukoil owns three refineries in Europe and oilfields in Kazakhstan (Uzbekistan), Iraq (Mexico), Ghana, Egypt, Nigeria and Ghana. It also has hundreds of retail fuel station around the globe, including the United States.
Lukoil is a shareholder in both the Karachaganak and Tengiz fields in Kazakhstan. These fields are also owned by Chevron Exxon Mobil Eni Shell.
The fields are a major source of crude oil for the CPC Pipeline, which transports more than 1.6 millions barrels of crude per day, or 1,5% of the global demand for oil, to the global markets via Russia.
Lukoil has also a stake (50%) in the Nigerian offshore licence OML-140 that is operated by Chevron. Lukoil's Finland-based petrol chain Teboil said Monday that it expected its ownership to be changed as part of Lukoil's efforts in selling international assets. Lukoil operates the West Qurna 2 in Iraq where Exxon operated the West Qurna 1, which was adjacent to it, before leaving last year.
Three Iraqi energy officials said on Monday that the Iraqi government was considering requesting a six-month waiver of sanctions from the U.S. Treasury to give Lukoil more time to dispose of its stake in West Qurna 2. Iraq has ruled the possibility of the state purchasing Lukoil’s stake in this project. (Additional reporting from Jarrett Renshaw; Sheila Dang; Shadia Nasralla, Writing by Dmitry Zhdannikov, Editing by Jan Harvey & Nia Williams.
(source: Reuters)