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Botswana, De Beers sign long-delayed diamonds deal
The Botswana government signed on Tuesday a long delayed diamonds sales contract with Anglo American's De Beers unit, expressing the hope that it will create jobs in an economy which is struggling. The negotiations began in 2018. The two sides agreed on terms in 2023, under the previous Botswana president. However, they never signed a formal agreement. The new president Duma Boko, who came to power in October last year, made the signing of the De Beers deal a top priority. The deal is crucial to Botswana, as its economy is heavily dependent on diamond exports. "We are confident that this deal will take us forward." This agreement is for the people of Botswana. It's about the jobs that it will create," Botswana President Duma Boko told the crowd at a signing in Gaborone. The deal is broadly in line with the terms agreed on in 2023. Botswana is increasing its share of rough stone it receives from the Debswana joint-venture with De Beers, which it currently gets 25%. The mining license of Debswana will be extended by 25 years, until 2054. Botswana’s economy was believed to have contracted in 2017 due to a prolonged decline in the global market for diamonds. In addition to a glut of supply and declining demand, the price of rough diamonds has fallen due to the popularity of lab-grown stones and the shift of younger consumers away the precious stone. The government is hoping that the economy will improve. The following are some examples of a successful return on investment This year, the diamond market has improved globally and other sectors have performed better.
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China's total gold imports through Hong Kong in January hit a near three-year high
Hong Kong Census and Statistics Department figures released on Tuesday show that China's total imports of gold via Hong Kong fell by 44.8% in January compared to December, and reached their lowest level since April 2022. Why it's important China is the largest consumer of gold in the world, and its buying activities can have a significant impact on global gold prices. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The data revealed that China imported 13.816 tons of goods in January, compared to 25.007 tons for December. CONTEXT Gold spot gained 27% in value last year. This is the largest annual increase since 2010. It has maintained its record-breaking rally this year with the price hitting a new high of $2,956.15 in Monday. In China, the demand for gold has been very low. Buyers have avoided purchasing due to record-high prices. Swiss customs data revealed last week that gold exports to China from Switzerland fell by 99% annually. India's gold exports will also fall 85% from last year to the lowest level in 20 years in February, as record prices of the precious metal sap demand, according to a government official. (Reporting from Anjana Anil, Bengaluru; additional reporting by Anmol Chaubey; editing by Andrew Heavens & David Evans).
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EU to support steel industry as US tariffs threaten
The EU Commission said on Tuesday that it would present plans in spring to protect Europe's steel industry from the looming U.S. tariffs and make it more competitive. The action plan will be developed following a "strategic dialog" with representatives from the sector, which was presided over by Ursula von der Leyen, president of the commission. This dialogue took place on 4 March. In November, the European steel industry called upon the EU Commission to take immediate measures to prevent what they termed as the irreversible decline of the sector. It called on the EU to develop plans that address trade, the EU’s carbon tax on imports and energy as part of wider proposals to assist companies in reaching the EU’s 2050 goal for carbon neutrality. Since then, U.S. president Donald Trump announced plans to introduce 25% new tariffs on all imports of steel and aluminum into the United States on top existing metals duties. "The steel sector is a major part of the European Single Market." Von der Leyen stated that this industry was of paramount importance to our fight against climate changes. "We want the European steel industry to be competitive and sustainable on a long-term basis." The Commission announced that on March 4, steel producers, raw material suppliers and other parties involved in the sector would discuss ways to improve competitiveness, accelerate decarbonisation and electricisation, and ensure fair trading relations. The Commission's Vice President Stephane Sejourne is then expected to launch an "action plan dedicated to steel and metals" in the spring.
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Shares rise as oil is found in Mopane's Galp new well
The Portuguese oil company Galp announced on Tuesday that it had discovered significant amounts of light oil and condensate gas in a well at Namibia's Mopane Field, creating new exploration opportunities. This has sent its shares sharply up. Initial estimates of the Mopane oil and gas discovery by Galp were at least 10 billion equivalent barrels. The company has drilled four wells in 2024 in order to explore and appraise the first hub of the Mopane Complex in the northwest region. A fifth well was drilled last month in the southeast region. In a press release, it said that the new Mopane-3X well was 18 km away from the original and targeted two prospects, AVO-10, and AVO-13, as well as a deeper sand in 1,200 metres of water depth. The report also noted that the oil viscosity was low and there were high levels of pressure and permeability. Galp shares rose 7% during morning trading, leading the Stoxx 600 pan-European index. Jefferies stated in a research report that the well would de-risk the resource estimate of 10 billion boe for the Mopane Complex, and support the case to develop a Multi-Floating Production Storage Offloading Development. Galp wants to sell half its 80% stake of Mopane’s Petroleum Exploration Licence 83, but it says it's not in a hurry. (Reporting and editing by David Evans; Sergio Goncalves, Joao Vicente Mauicio)
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Palm oil prices rise on the back of strong Chicago soyoil and low production
The price of Malaysian palm oils futures rose on Tuesday. This was due to a weak outlook for production in February, and the strength of Chicago soyoil. However, weak Dalian oils, and muted exports, limited gains. By midday, the benchmark contract for palm oil delivery in May on the Bursa Derivatives Market gained 2 ringgit or 0.04% to 4,561 Ringgit per metric ton. A Kuala Lumpur based trader stated that "lower production provides support". Dalian's palm oil contract, which is the most active contract in Dalian, lost 0.97%. Chicago Board of Trade soyoil prices rose by 0.8%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils. A senior regulatory official said that Malaysia's palm oils stocks will fall to 1.5 million tons by the end February due to floods which have affected production, and Ramadan, the festival of fasting, has boosted demand. A leading palm oil producer said on Tuesday that the supply of palm oil is likely to be tight for two to three more months due to the floods in Indonesia and Malaysia. These two countries are the top two producers of palm oil worldwide. According to cargo surveyor, the exports of Malaysian products containing palm oil in the period February 1-25 are expected to decline by 2.7%. Intertek Testing Services Independent inspection company AmSpec Agri Malaysia estimates that exports have increased by 1.2% compared to a month earlier. As a double-top or flat pattern may be forming, palm oil could fall towards the low of 4,457 Ringgit per metric tonne on February 17.
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Japanese auto industry asks for government assistance against US tariffs
The Japan Automobile Industry Association urged the Japanese government to protect Japanese automakers against tariffs the United States could impose on autos and auto parts imported from Japan. JAMA chairman Masanori Katayama expressed concern about the economic damage that could be caused to both Japan and the United States if President Donald Trump's government imposes high tariffs on imports of autos from Japan. Trump announced last week that he would impose a 25% tariff on auto imports as early as April 2. Steel and aluminum will be subject to separate 25% tariffs starting March 12. Katayama made his remarks in Tokyo at the beginning of a meeting between Trade and Industry Minister Yojimuto and Katayama. Toyota, Honda, and Nissan executives were also in attendance. Japanese automakers will be vulnerable to any additional tariffs Trump imposes, especially on auto imports. Toyota, Honda, and Nissan all produce some of their top-selling U.S. models either in Canada or Mexico. Subaru, Mazda and other smaller firms are also at risk. Muto, a reporter, said that during the closed-door meeting, executives from the auto industry expressed concerns about being unable to pass higher costs due to higher U.S. Tariffs, and their economic impact. On Tuesday, Muto had separate meetings with the steel and aluminum industries of Japan to discuss the tariff issue. Tadashi Imai (also president of Nippon Steel) told reporters, before the meeting, that the main concern for the Japan Iron and Steel Federation was that protectionism could further depress the global steel markets.
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Arteta says he will not give up the title race despite his death.
Mikel Arteta, the Arsenal manager, said that his team will not give up the Premier League race for the title despite falling further behind the leaders Liverpool following Saturday's defeat to West Ham United. He also insisted that the team has done well despite the injuries and setbacks. "We won't stop" Arteta said to reporters, "Over my dead body," on Tuesday before their midweek match against third-placed Nottingham Forest. Liverpool is 11 points ahead of Arsenal who has a game left. Second-placed Arsenal faces a mountain to climb with the injured Gabriel Jesus, Kai Havertz, Bukayo Saka, and Gabriel Martinelli. Liverpool is unbeaten in league play since September. Arteta explained: "If someone tells you, at the beginning of the season, that you played five games with a yellow card and over 30 minutes in each game, you have lost a certain number of players, you are at least in the middle of table." This is not the case. This shows the team's resilience, resourcefulness, and ambition." Arteta stated that Arsenal won exactly the same number of points in 15 matches before the West Ham loss. "We lost and then they won... it was hard to accept," said the former Arsenal midfielder. There are so many games available. You have to go back. We have the level, the consistency, and the desire to do it again. On Wednesday, we will do exactly that. "You have to reach certain numbers to win this league, and we must hit that number to have a chance." (Reporting by Chiranjit Ojha in Bengaluru Editing by Christian Radnedge)
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Arctic doomsday vault receives more than 14,000 samples
The vault, which stores food crops seeds from all over the world in caves created by humans on an isolated Norwegian Arctic island, will receive 14,000 more samples on Tuesday. In 2008, the Svalbard Global Seed Vault was created as a backup to the gene banks around the world that store genetic codes for thousands of species. The vault, protected by permafrost and ice, has received samples all over the world and played an important role in the rebuilding of seed collections that were damaged in the Syrian war between 2015 and 2019. In a press release, Crop Trust Executive Director Stefan Schmitz said that the seeds represent more than just biodiversity. They also reflect the culture, knowledge and resilience of communities who care for them. The Crop Trust stated that the new contributions included a sample from 15 species of Sudan consisting of various varieties of sorghum, a plant which is important for both the food security of the country and its cultural heritage. The conflict between the Rapid Support Forces (RSF) and the army that erupted in April 2023 killed tens thousands and forced 12 million people to flee their homes. It also plunged half of Sudan into famine and other locations into hunger. In a recent statement, the Director of Sudan's Agricultural Plant Genetic Resources Conservation and Research Centre stated that "these seeds are a symbol of hope in Sudan". The Crop Trust announced that a total of 14,022 samples, including rice from Thailand and seeds from Nordic tree species, will be collected at 1430 GMT. (Reporting and editing by Terje Sollvik and Christina Fincher, and Louise Rasmussen).
Malaysia's Petronas reports a profit decline in 2024 due to global volatility and lower oil prices
Malaysia's Petroliam Nasional Bhd, the state-owned energy company, reported a decline in profits in 2024, compared with a year earlier, due to global volatility, lower oil prices, and geopolitical tensions and economic uncertainty. The firm also warned of future market challenges. Petroliam Nasional (or Petronas) reported a profit of $55.1 billion after taxes in 2024, compared to $80.7 billion in 2023.
In 2024, revenue fell from 343.6 billion to 320 billion Ringgit.
Capital investments in 2024 were 54.2 billion Ringgit compared to 52.80 billion Ringgit in the year 2023.
Tengku Muhammad Taufik Tengku Aziz, Petronas' Chief Executive Officer, said that the oil and gas sector has been facing a number of challenges, including the deglobalisation of the industry, the backlash against efforts to improve environmental, social, and governance, and the threat a long-term trade war.
Tengku Tafik said at a press briefing that he expected the uncertainty to last well beyond 2025.
Petronas, he said, will overcome the challenges through a prudent financial management and maximising its assets' potential. Tengku Taufik said that Petronas was committed to future-proofing its portfolio by strategic investments into a joint venture for a liquified gas plant in Canada, as well as in upstream ventures with Angola and Indonesia. Tengku Taufik added that the state-owned energy company will need to reallocate resources and eliminate inefficiencies aggressively as it announces plans to reduce workforce.
Tengku Taufik stated that the Petronas workforce reduction would begin in stages in the second half of this calendar year. He did not specify how many employees the reduction would affect.
According to its website, Petronas employs nearly 50,000 people.
(source: Reuters)