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First Quantum does not sell Zambian copper mines stake in a hurry
First Quantum Minerals won't rush into a sale of a minority stake in the copper mines it operates in Zambia, said CFO Ryan MacWilliam to analysts after the miner reported its fourth-quarter results on Wednesday. He said that the Toronto-based company wants to find a long-term business partner for its mines in Zambia. There are no "specific deadlines" set forth by him. MacWilliam stated that "we have always been clear about the fact that any agreements we make in Zambia are for 25 years." It's more important to get the right agreement than to rush into one. Sources reported in October that the Saudi Arabian mining firm Manara was in advanced discussions to purchase between 15% and 20 percent of First Quantum Zambia's assets. First Quantum said that it needed the money to expand production at its Kansanshi mine in the north-west of the country. After Panama closed down the Cobre Panama mine, the Canadian miner's Zambian assets in copper and nickel have been key to its growth. MacWilliam, a First Quantum spokesperson, said that the company wants to strike a deal which benefits both its investors and the Zambian Government, who owns 20% of the assets.
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Barrick will resume its operations in Mali as soon as it can ship gold to the country, Barrick's CEO said
Mark Bristow, CEO of Barrick Gold, said that the mine will resume operation once Mali authorities allow it to resume gold shipment. Bristow, a Canadian miner, told Toronto that Mali had assured it that the gold worth $245 million confiscated by authorities belonged to Barrick. Mali and Barrick are locked in a dispute over Mali's new mining codes since last October. On Wednesday morning, the Toronto Stock Exchange saw the miner's share price rise as high as 6%. Barrick is Mali's largest investor. The tensions between the two parties increased when Mali arrested four Barrick employees, issued an arrest warrant to Bristow and earlier this month seized gold from Barrick’s mine. Bristow added that Barrick had paid $460 Million to the Mali Government last year. "So, if you do the math per week... every week that we don't follow through on this hurts us all," he said. Barrick also filed a dispute resolution arbitration with the International Arbitration Commission against Mali. Bristow stated that Mali is not a project for a short time and the company plans to remain invested in the country.
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What are the critical minerals of Ukraine and why is Trump interested in them?
U.S. Treasury Sec. Scott Bessent arrived at Kyiv, Ukraine on Wednesday for a crucial minerals deal. Ukraine is trying to gain the support of U.S. president Donald Trump in a dangerous diplomatic moment in its war with Russia. Trump said that he wanted Ukraine to provide the United States rare earth minerals in exchange for financial support of the country's efforts to fight Russia. Here is a list of critical minerals in Ukraine, including rare Earths and other natural resources that may be of interest to other partners and the U.S. What are rare earths and what do they serve for? Rare earths is a grouping of 17 metals, used in the production of magnets for electric cars, cell phones and missile systems. There is no substitute. The U.S. Geological Survey has identified 50 minerals as critical, such as rare earths like nickel and lithium. Minerals are vital for industries like defence, high-tech appliances and aerospace, as well as green energy. What mineral resources does Ukraine have? According to Ukrainian data, Ukraine has 22 of the 34 critical minerals that the European Union identified. These include ferroalloys, non-ferrous and precious metals, industrial and construction materials and rare earth elements. According to the Institute of Geology of Ukraine, the country has rare earths like lanthanum, cerium and neodymium. These are used for wind turbines, electric vehicles and batteries. Erbium and yttrium can be used to produce lasers, nuclear power and other applications. EU-funded research indicates that Ukraine also has scandium deposits. All data is classified. World Economic Forum said that Ukraine is a major potential supplier of lithium as well as beryllium and other metals such zirconium gallium graphite apatite fluorite nickel. State Geological Service of Ukraine said that Ukraine has one Europe's largest lithium reserves estimated at 500,000 tons - essential for batteries, ceramics and glass. Titanium reserves are located mainly in the northwestern and central parts of the country, whereas lithium deposits are found in the east, centre and southeast. The graphite reserves in Ukraine, which are used to make electric vehicles batteries and nuclear power reactors, account for 20% of the global resource. Deposits are located in the west and centre. Ukraine has also significant coal reserves. However, most of them are under Russian control in the occupied territories. WHAT HAS UKRAINE COMMENTED ON RARE EARTHS? On February 7, Ukrainian President Volodymyr Zelenskiy said that he would be willing to make a deal with Trump, which included U.S. participation in developing Ukraine's vast deposits of vital minerals, including rare Earths. Zelenskiy first aired this idea in his "victory plans" strategy that he presented to Kyiv’s allies last fall. The plan includes, among other things: reaching agreements with partners abroad to allow joint access to Ukraine’s strategic valuable resources. According to mining analysts and economists, Ukraine does not currently have any rare earth mines that are commercially active. China is the largest producer in the world of rare earths, as well as many other essential minerals. Which Ukrainian resources are under Kyiv's control? The war in Ukraine has left a lot of damage, and Russia controls about a fifth. The majority of Ukraine's coal reserves, which fueled its steel industry prior to the war, is concentrated in the eastern part and has been lost. According to We Build Ukraine, and the National Institute of Strategic Studies in Ukraine, data from the first half of the year 2024 shows that about 40% of Ukraine's metallic resources are under Russian occupation. The think-tanks did not provide a detailed breakdown. Since then, Russian troops continue to make steady progress in eastern Donetsk. In January, Ukraine shut down its sole coking coal mine near the city of Pokrovsk that Moscow is trying to seize. Russia has taken over at least two Ukrainian deposits of lithium during the war. One in Donetsk, and the other in Zaporizhzhia in the southeast. Kyiv controls the lithium deposits of central Kyrovohrad. What mining opportunities does Ukraine offer? Oleksiy Solovev, the first deputy minister of economy, stated in January that the Government was working with Western allies, including the United States and Britain, France, and Italy, on projects related exploitation critical materials. The government estimates that the total investment potential in this sector will be around $12-15 billion between 2033 and 2033. The State Geological Service stated that the government is preparing 100 sites for joint licensing and development but did not provide any further details. Investors have highlighted a number barriers to investment, despite the fact that Ukraine has an extremely qualified and inexpensive workforce and developed infrastructure. These include complex and inefficient regulatory processes, as well as difficulties obtaining geological data or land plots. They said that such projects would require years of development and a large upfront investment. Reporting by Olena Hartmash, Editing by Louise Heavens, Gareth Jones
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Dominion Energy increases its five-year capital expenditure plan to meet the power needs of data centers
Dominion Energy increased its five-year plan for capital expenditures on Wednesday, as the utility firm looked to capitalize on the possible growth in demand in electricity due to the rise of data centers in the U.S. The Richmond, Virginia based company anticipates spending $50.1 billion between 2025 and 2029, up from the $43.2 billion previously estimated. According to the U.S. Energy Information Administration, the U.S. power demand is expected to reach record levels in 2025 and in 2026, due to an increase in demand for data centers that are dedicated to artificial-intelligence and cryptocurrency as well as homes and businesses to heat and transport. Dominion reported that data centers purchased 88% more energy capacity in December, or 19 gigawatts. It has narrowed the range of its operating earnings forecast for 2025 from $3.25 per share to $3.52, down from a previous range of $3.25 per share to $3.54. In early trading, shares of the utility company fell by nearly 2%. According to LSEG, for the fourth quarter the company posted an operating profit of 58 cents a share, exceeding analysts' expectations by 2 cents. A $119 million tax benefit offset the lower revenues and increased operational expenses. The quarter saw a 8.6% drop in heating degree days, a measure of the energy required for space heating. Bob Blue, CEO of Dominion, said: "We achieved 2024 operating earnings in the upper half of our range despite weather conditions worse than normal in our regulated services areas." Dominion also had to pay $276 million in charges for costs that it didn't expect to recover as a result of its wind power project off the coasts of Virginia.
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Andy Home: Tariff threat creates rift between copper prices in the US and Europe
The market has already priced in the possibility that after steel and aluminium, the red metal could be the next to receive import tariffs. In recent days, the arbitrage between CME and London Metal Exchange (LME), has become more pronounced. The CME premium exceeded $1,000 per metric tonne earlier in the week. The market expects a minimum 10% tariff based on the current price of LME 3-month copper, which is currently around $9,400 a ton. CME premiums could rise further if Trump imposes the same 25% tariffs on imports of aluminum and steel. Doctor Copper's likely reaction to a escalating trade war and its negative impact on global growth is being overlooked. Mind the Widening Gap The CME’s U.S. Midwest Premium Contract is where the aluminium trade takes place, because the CME’s underlying contract for aluminium mirrors the LME’s international delivery status. CME copper contracts, on the other hand, are customs cleared and only have domestic delivery locations. This means that any premium associated with U.S. deliveries must be reflected in this contract. The CME premium is a good indicator of potential U.S. copper tariffs. Right now, it's trading at record-highs. It even surpasses last year’s short squeeze explosion. CME's copper stock has recovered from its depleted level that fueled the squeeze, and now totals over 100,000 tonnes. The U.S. Geological Survey reports that the U.S. consumer is highly vulnerable to tariff barriers, as the country still relies on imports to meet around 45% domestic consumption. Trump's tariff threat is causing price volatility. However, the exact level and countries against whom tariffs will be applied are still unknown. The announcement of tariffs on aluminum and the possibility of even higher duties if trading partners retaliate has spooked copper markets, forcing arbitrage to become more widespread. Damage Impact According to the USGS, the immediate focus of the trade in copper tariffs is on refined metal. This is understandable, given that the United States only imported just under 800,000 tonnes of this product in 2024 compared with the 850,000 tons of domestic production. The CME premium, which is currently a major incentive for metals to be shipped to the United States, will adjust the trade flow over time. Tariffs on copper could have a much more complicated impact, due to the complex flow of materials between the United States, Canada and Mexico, which both face 25% tariffs. Copper wire is exported by the United States to Mexico for use in automotive parts, such as electric motors and wiring harnesses. These are then sent back across the border. Analysts at Project Blue estimate that this trade represents 220,000 tons of copper per year. If high tariffs are imposed on these imports, harness assembly will likely move from Mexico to cheaper Asian countries. This would have negative effects for Mexican and U.S. automotive companies. Tariffs may cause copper scrap flows to be diverted to other countries - most likely China - at the expense of U.S. secondary manufacturing. TARIFF DRAG The interconnectedness between North American copper flows and the globalised picture is only part of the bigger, complex picture. This leaves the metal vulnerable to any shifts in trading patterns that may result from U.S. Tariffs. Doctor Copper is a title that has been given to the metal because of its importance in the global economy. The possibility of tit-fortat tariffs being imposed between the United States, and its trading partners, could have a significant impact on consumer spending. The market hasn't yet priced this in. The LME copper has increased by 7% in price since January 1, fueled by the expectation of an improved demand, especially in China. China, along with everyone else, is in the sights of the Trump administration. Copper will be affected by the tariff wars if they have started. This will reflect in the international prices rather than U.S. prices, suggesting a further fracture between CME-LME markets. These are the opinions of the columnist, an author for.
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As US inflation rises, stocks tumble and the dollar surges
The dollar and U.S. stocks rose after the data showed that consumer inflation increased more than expected in January, supporting Jerome Powell's statement that interest rates are not being cut. The Bureau of Labor Statistics of the Labor Department reported that its consumer price index increased at an annual rate of 3.3% in January. This was above expectations for a 2.9% increase. Market watchers and households alike are preparing for an increase in inflation as a result the U.S. President Donald Trump’s tariffs. After being mostly stable all day, futures on the S&P 500 index and Nasdaq fell sharply by almost 1%. The dollar rose sharply against several currencies due to a rise in U.S. Treasury Yields. Market participants believe that the Fed will only reduce rates one more time this year. Only 26 basis points are priced in for December, down 35 bps from before the data. "Tariffs place the Fed in a difficult position because they can reduce economic growth, create unemployment but also inflationary. "The Fed may be more inclined to wait and see how things settle rather than make a move until it is certain what tariff policy it will have and for how long," Charles Schwab UK's Richard Flynn, managing director said. "Hotter prices would probably keep the Fed from reducing rates sooner. This would result in a stronger Dollar." The U.S. dollar rose by 1.2% against the Japanese yen on the same day, to 154.295. The euro fell by 0.4% to $1.0322, and the pound dropped 0.5% to $1.238. The yield on the benchmark Treasury 10-year note increased by 10 basis points on the day, to 4.64%. Gold continued its earlier decline, falling by 1.1% to $2 869 per ounce on the same day. It had hit a record-high just short of $2,900 an ounce earlier in the week. Investors will be watching Powell's second semi-annual testimony closely after he told Congress on Tuesday that despite the "pretty good" state of the economy, the central bank is not in a hurry to cut interest rates further unless there was a need for inflation or if the job market was weak. The second act is usually not as popular, but today's CPI could prompt a different tone or raise different questions. The release will be compared to the expectations, said Jim Reid, a strategist at Deutsche Bank. Trump's advisors are said to have finalised plans to impose tariffs in return for any country that levies a tax on U.S. imported goods. On Monday, he announced a 25% increase in tariffs for steel and aluminum.
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OPEC maintains its global oil demand forecasts for 2025 and 2026
OPEC reiterated its prediction of a relatively strong increase in global oil consumption in 2025. It said that air travel and road travel will support consumption, and trade tariffs are not expected to affect economic growth. In a report published monthly, the Organization of Petroleum Exporting Countries (OPEC) said that the world's oil demand would rise by 1,45 million barrels a day (bpd), in 2025, and by 1,43 million bpd, in 2026. Both forecasts were unchanged since last month. OPEC believes that oil demand will continue to rise in the coming years. This is contrary to the International Energy Agency, which expects demand to peak this decade due to the switch to cleaner fuels. OPEC's report said that the new U.S. Administration of Donald Trump has increased uncertainty in the markets and could create supply-demand imbalances which are not reflective market fundamentals. However, it did not change its forecast for 2025 economic growth. OPEC stated in its report that it remains to be seen to what extent and how potential tariffs will affect the current growth assumptions. They are not expected to have a material impact on the current growth assumptions. Brent crude traded lower, towards $76 a barrel, after the OPEC release. The IEA estimates that the demand for oil will grow by 1.05 million bpd in 2025, which is lower than OPEC. However, the gap between OPEC and the IEA on 2025 has shrunk since 2024, when it reached a high due to differences regarding the pace of energy transition. OPEC+ - which is a grouping of OPEC, Russia and other allies - has been implementing a series cuts in output since the end of 2022, to support markets. The plan currently calls for a gradual increase in oil production starting April. Reporting by Alex Lawler, Editing by Elaine Hardcastle, and Tomaszjanowski.
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Storage levels are falling as a result of the German gas event.
The German gas market manager's meeting with key stakeholders at a trade show has not led to the subsidised gas auctions that could boost underground storage caverns. In the absence of progress, the biggest economy in Europe faces a question mark over its energy supply during the winter months. The country is trying to conserve funds before a general elections. The slides of Trading Hub Europe (THE) stated that a tender was not planned at this time. However, incentives for new injections during the summer months had been discussed. THE's state supervision must decide and specify these incentives. The wholesale gas market is interested in THE's action, as European gas prices for the next month are at two-year-highs due to a combination between cold weather and competition from around the world. The reversal of seasonal prices has made summer filling less appealing, which in turn has led to increased expectations that the state-mandated THE must incentivize gas purchases in order to reach a 90% target by November as stipulated in national and European law. Gas Infrastructure Europe (GIE) data shows that Germany has the largest gas storage capacity in Europe. However, its sites are only 48% filled, which is a substantial decrease from 72% at the same point last year.
Barrick Gold announces new share purchase plans after beating profit expectations
Barrick Gold Canada beat analyst's expectations for the fourth quarter profit on Wednesday due to higher gold prices and production.
According to LSEG, on an adjusted basis the second largest gold miner in the world posted a profit per share of 46 cents, compared with the estimated 41 cents, for the quarter ending December 31.
The quarter's gold production was 1.08 million ounces compared to 1.05 million in the same period last year. This is due to the North America, Africa, and Middle East operations exceeding expectations.
In 2024, gold prices increased by over 27%, the biggest annual increase since 2010. This was due to safe-haven demands, rate reductions, and central bank purchases.
Barrick reported that its average realized gold price rose to $2.657 per ounce during the fourth quarter of last year from $1.986.
The industry's total costs, or all-in-sustaining costs, a measure of expenses, increased to $1.451 per ounce during the third quarter from $1.364 per an ounce a year ago.
The company announced that it would be launching a new $1 billion share-buyback program, which will replace its previous program in place since February 14, 2024. (Reporting from Seher Dareen, Bengaluru. Editing by Maju Sam)
(source: Reuters)