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EU will delay the anti-deforestation legislation by another year, says commissioner
Jessica Roswall, the Environment Commissioner, announced on Tuesday that the European Union would delay its anti-deforestation legislation for a second year. This will also postpone a ban on palm oil imports, which are linked to deforestation. After complaints from Brazil, Indonesia, and the administration of then-U.S. president Joe Biden and other industries and trading partners in Europe and North America, Brussels delayed the law for an additional year. Roswall told reporters that postponing the implementation of the law was necessary to address concerns about the large volumes of information needed to enter into the information-technology system to enforce the law and was not linked to U.S. concerns about the policy. She said that if the IT system is not addressed, the EU's businesses and supply chain could be disrupted. We are concerned about the IT system because of the volume of data we input into it. We will therefore, in conjunction with co-legislators seek a one-year postponement. This will also give us the time to examine all of the risks," said Ms. Shen. "There is a great deal of information that comes from the industry and business in a very short time." We see this as a potential risk, and we need the extra time to figure out how to solve it," Roswall said. Roswall stated that she would discuss the next steps with both the European Parliament as well as the EU member states. Both must approve of the delay. (Reporting and writing by Kate Abnett, Sudip Kar Gupta, Makini Brice; Editing by William Maclean).
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Wildfires in Canada: An unexpected benefit
Colin Penner, a farmer who farms 3,700 acres about an hour north of the U.S. Border, crunched a handful of canola pods, and blew away the chaff in a stiff prairie wind. In his hand, a small pile of black seeds was left. The harsh sun and high temperatures last summer scorched the yellow flowers of canola and destroyed their pollen. This led to lower yields in Western Canada. Smoke from nearby wildfires covered the skies in July and shielded Penner's young crops from the sun's rays. This resulted in more seeds and pods per plant. He said, "Look at these pods." He will wait to see the harvest, but "smoke is likely to be a good thing." Canola farmers are finding unexpected benefits from the summer skies, as long as it is in July when the crop flowers. Smoke protects delicate canola flower petals and pollen from the intense heat and sun, reducing the impact of the drought that lasted for most of the summer. Scientists believe that prolonged periods of heavy smoking have negative effects on food quality and crop yields. We spoke with dozens of canola farmers and 10 crop specialists who all agreed that the midsummer smoky sky had mostly positive effects for the crop. However, the experts warned that further research was needed. Bruce Burnett, an analyst for the Western Producer Markets Desk, said that the cooling effect of smoke countered the high temperatures during the day and at night, which can harm the crop. Canada is the largest canola producer in the world, with 21 million acres of land planted along Canada's vast forests. The seeds of canola are crushed and used to produce cooking oil, biodiesel, and animal feed. Canola is a cool-climate crop that grows mainly in the northern plains of North America and Europe, as well as Australia. It does not tolerate heat. Heat can cause its pollen to melt, which prevents fertilization and seed formation. The harsh sunlight can cause flower petals to burn. Curtis Rempel is vice president of the Canola Council of Canada's crop production and innovations. He said that smoke can reduce temperature and reduce sunlight. SCIENTISTS REVISE IDEAS ABOUT SMOKES In 2022, the Intergovernmental Panel on Climate Change (IPCC), a climate science panel of the United Nations, predicted that a warmer world and shorter winters will lead to more intense wildfire seasons. Canadian officials stated in August that the intensity and length of wildfires are increasing as winters get shorter and spring, summer, and fall become warmer. Four crop experts said that smoke was probably the worst for North America's largest crops like corn and soya beans, as it reduces heat and sunlight, which plants require to grow. Smoke from wildfires in California has severely damaged wine grape production. The damage was severe both in 2017 and 2020. Researchers in Ohio found mixed results. Researchers found that while the smoke reduced temperatures and light, corn, soybeans and wheat yields reached their highest level in 10 years. Raju Soolanayakanahally is a senior researcher with Agriculture and Agri-Food Canada. He said that the Canadian government will launch research on wildfire smoke's impact on canola and wheat. Soolanayakanahally stated that despite farmers' claims of benefits for this year's crop, smoke could also slow down and weaken the development of crops. The haze may degrade chlorophyll, which is vital for photosynthesis, and decrease the efficiency of enzymes critical to plant development. A review of the existing research into the effects of smoke in U.S. corn found that it had a largely negative impact. Mark Jeschke of Corteva Agriscience Pioneer Seeds, the author of the study and Agronomy manager, said that further research is needed to determine how airborne and ground-level smoke affects corn during its pollination and maturation. The timing of an event that causes stress can be very important. Smoke-tainted wine was discovered in 2020 when over 8,000 fires spread across 4.3million acres of California. Most vineyards were spared direct damage. Vintners discovered that the grapes had produced a slurry with a foul smell and taste, rendering it unsuitable for making wine. The term "smoke-taint", which was used to describe the taint, became a part of wine lexicon. According to the California Association of Winegrape Growers, up to 325,000 tonnes of wine grapes valued at more than $650 million were destroyed that year. Researchers and the industry have been testing treatments that remove smoky components from fermented wine slurry. They also tested a spray to prevent grapes on the vine from absorbing smoke. Natalie Collins, president of the California Association of Winegrape Growers said: "We have so much work to do."
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Copper prices rise on concerns about supply, but inventories are weighing
The price of copper rose on Tuesday, as disruptions in supply and lower interest rates offset concerns about high inventories and the slowdown in global economic growth. By 0920 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen by 0.2% to $9,990 per metric tonne. "We must deal with disruptions in mine supply but we also have healthy increases in inventory levels, particularly in the U.S.," Ole Hansen said, head of commodity strategies at Saxo Bank, Copenhagen. The U.S. rate reductions last week have added to the positive mood, but it is important to remember that they are being done from a place of weakness and not strength. After an incident early in September, production remains suspended at Freeport Indonesia’s Grasberg Mine, one of the largest copper mines in the world. The U.S. Comex exchange's inventories soared in the first half of this year, anticipating U.S. Tariffs. They have since continued to rise, and now total 318,285 metric tons, up by 241%. LME copper is up 13% this year but has fallen from the 15-month high of $10,192.50 reached last week. The question is, will the upward trend that we have seen since May continue? Hansen said that we need to keep the price above $9,850 to avoid a further decline. The most traded copper contract at the Shanghai Futures Exchange ended daytime trading with a 0.3% decline, closing at 79.930 yuan per ton ($11,237.80). According to an anonymous Singapore hedge fund analyst, some traders have closed their long positions since SHFE closed Monday above the psychologically important level of 80,000 Yuan per ton. Lead fell 0.3% at $1.992 and Nickel dipped by 0.1%.
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Serbia will sign a gas import agreement with Russia in October
The head of Serbia's state gas company, RTS, told the public broadcaster on Tuesday that Serbia will sign a deal for a three-year supply of gas with Russia. Dusan Bajatovic, Srbijagas, said that Serbia already has daily gas supplies of 2.5 millions cubic metres from Azerbaijan. It also receives 9.5 million cubic meters daily from Russia. Bajatovic said that Serbia has a single gas storage facility which holds 780 millions cubic metres of gas. If needed, an additional 200,000,000 cubic metres can be obtained from a storage in Hungary. Serbia is one of the few European countries that still buys Russian gas, despite its desire to join the European Union. The government is under pressure from Western nations, but has not yet taken action. The oil monopoly of the country, NIS, which is owned in majority by Russia's Gazprom and Gazprom, is asking for a 7th waiver to delay U.S. sanction that could put its crude oil supply at risk. Aleksandar Vucic will meet with U.S. State Secretary Marco Rubio on Tuesday to discuss, among other issues, tariffs and sanctions. (Reporting and editing by Louise Heavens, Ivana Sekularac)
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Gold reaches record highs on bets that further rate cuts will occur ahead of Powell's speech
The gold price reached a new record high on Monday, driven by expectations that the U.S. Federal Reserve will continue to cut rates. Investors were waiting for Jerome Powell’s speech at the Federal Reserve later in day, which would provide further policy clues. As of 0840 GMT the spot gold price rose by 0.6% to $3,769.48 an ounce. This is a new record high. U.S. Gold Futures for December Delivery rose by 0.7% to $3.801,70. Stephen Miran, the new Fed governor, called for rate cuts aggressively on Monday. He said that the Fed misread how tight its monetary policy was and would put the job markets at risk. This view was countered by remarks made by three of Miran's colleagues, who felt the central bank should remain cautious regarding inflation. "Miran’s dovish position certainly heightens expectations of more rate cuts, as it appears the U.S. Administration is keen to push for this. This is a positive outcome," said Ross Norman, an independent analyst. Investors can expect two 25-basis-point cuts in December and October, according to CME FedWatch. The tool predicts a 90-73% probability of each. Gold that does not yield tends to perform well in an environment of low interest rates. Norman said that "gold is seeing good interest from institutional investors, who may be rotating out of the equities market as it reaches its peak. India also has a good demand for gold." The physical gold premium in India reached a 10-month-high this week, as investors continued to buy bullion to take advantage of record prices in the run up to the festive season. Norman said that the gold rate in the short-term depends on the Indian demand, the Chinese purchasing, and the durability of the increase in ETF holdings. SPDR Gold Trust said that its holdings increased 0.60% from Friday to 1,000.57 tonnes, which is a three-year-high. Silver spot fell by 0.1%, to $44.04 an ounce. This is near the 14-year high. Platinum rose 1.6% to $1,438.97, and palladium climbed 1.9% to $1,000.94. (Reporting by Ishaan Arora in Bengaluru; Editing by Joe Bavier)
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Exxon Mobil opens new Singapore refinery unit to boost sour crude oil imports
Exxon Mobil Corp. has begun production at its Singapore oil refining complex at new facilities to produce base stock from residue fuel. It said on Tuesday that this would increase the plant's intake high-sulfur crude. Exxon released a statement that said the technology uses a combination of processes to transform fuel oil and other crude products at the bottom of barrels into more valuable lubricant base stocks and distillates. Exxon said that the new facilities will increase its Group II base stock production capacity by 20 000 barrels per day. According to Kpler data, Crude imports from Exxon Singapore's refinery reached a record high of 541,000 barrels a day in August. This is the highest level since 2016. The region has been experiencing sulphur-rich crude oil demand. Data showed that the refinery had stopped importing low-sulphur U.S. oil since April and was now only buying high-sulphur crude. According to data, in August, United Arab Emirates ranked first with Murban crude and Upper Zakum oil while Qatar ranked second with al-Shaheen crude. According to data, the refinery imported Arab Light crude in August from Saudi Arabia for first time since November 20, 23. Oman and Iraq are also suppliers. Exxon's Jurong Island crude oil processing capacity is 592,00 barrels per day. Base stocks for industrial and commercial applications are used to make engine oils, gear oil, marine oils and greases.
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Miliband: 'Don't listen to the doomsters.'
Ed Miliband, Britain's Energy Minister, said that talk of an American-led retreat from climate action is overstated. He also stated that the economic arguments for net zero are strong enough to overcome domestic and international scepticism. Miliband spoke from New York Climate Week where speakers called on world leaders to put climate promises into actions, in the backdrop of U.S. president Donald Trump's agenda to boost fossil fuels and roll back pollution regulations, and to defund science and climate action. Not everyone is in favor of climate action He said via video link: "There are many people who say that countries are reversing their climate action and clean-energy policies, but don't listen to the doomsters." When you examine what is really going on, the story is actually very different. He also cited a more positive than expected vibe at Climate Week, and data that showed clean energy technologies had attracted $2 trillion in investments in 2024 -- twice as much as fossil fuels. TRUMP DESCRIBED WIND POWER AS AN EXPENSIVE JOKE Trump, on a recent high-profile visit to Britain described wind energy - which is a major component of Miliband’s plans to decarbonise UK power production by 2030- as "expensive" and encouraged the country to tap into its remaining oil reserves. Miliband responded that countries are entitled to act according to their own interests and that, for many people outside of the U.S.A., focusing on climate goals could lead to more affordable and secure energy. The International Renewable Energy Agency published a report in July that found the majority newly installed renewable energy to be more cost-effective than fossil fuels for electricity production. UK POLITICAL OPPOSITION PREFERS FOSSIL FUEL Miliband is facing opposition from Nigel Farage’s Reform UK party, which currently leads British opinion polls in advance of a 2029 election. They accuse him to be driving up bills through subsidising renewable energy. Farage has pledged to scrap net zero targets, subsidies and support drilling for gas and oil. "I believe they are on a wrong side of the British public, to be honest. People want action on the environmental. Miliband stated that they want it to help tackle the cost-of-living crisis. "We are happy to fight for the future of Britain, and I think it's a battle we can win." (Reporting and editing by Aidan Lewis in London, William James)
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Gulf markets fall as investors consider regional rate cuts and Fed outlook
Gulf stocks fell in the early trading on Tuesday, as investors digested the regional interest rate reductions following U.S. Federal Reserve’s moves. However, lingering uncertainties about its policy outlook kept sentiment cautious. The Fed cut its benchmark rate on Wednesday by a quarter of a percentage point in response to an improving labour market. However, it signaled a cautious approach to future monetary policy ease, leaving investors uncertain about the pace at which further moves will be made. Saudi Arabia, United Arab Emirates and Qatar have all cut their rates by 25 basis point each. Dubai's main stock index fell 0.6% with the majority of sectors slipping into negative territory. Emaar Properties, which was poised to break a three-day streak of winning, fell by more than 1%. Emirates NBD Bank dropped by 0.8%. National Central Cooling (better known as "Tabreed") fell 0.7% before its ex-dividend day. Consumer discretionary performed better, thanks to a 2.3% increase in Taaleem Holdings. ADNOC Logistics' 0.5% decline weighed on Abu Dhabi’s index, which fell 0.1%. Presight AI, a technology stock that has been down more than 1% compared to global peers, was the biggest laggard. Together with investment firm Shorooq the company announced the launch a $100 million fund to accelerate AI innovations. Qatar's stock market index fell by 0.1% on its way to a third consecutive day of losses, with the selling concentrated in energy and financial shares. Qatar National Bank, which is the largest lender in the region, fell 0.5%. Qatar Fuel also dropped 0.4%. Saudi Arabia closed for National Day. (Reporting and editing by Andrew Cawthorne in Bengaluru, Amna Marieyam)
The mine that funds Congo's rebels and feeds the tech industry
Under the watchful eyes of M23 rebels, in the hills surrounding the Congolese city of Rubaya a line men in rubber boot ferry sacks of crushed stones up winding paths cut in to the slopes.
Coltan, a mineral which powers modern technology, is being hauled by the workers. The ore is loaded onto motorbikes, and then shipped thousands of kilometers to Asia. The ore is then processed into tantalum - a heat resistant metal which fetches over $300 per kilogram. It's in demand by manufacturers of mobile phones and computers as well as aerospace components and gas engines.
Rubaya is responsible for 15% of all the coltan produced in the world. Coltan is mined by hand, and locals earn just a few dollars a day. The control of this mine is at the heart of a long-running war in this nation in central Africa.
M23, the rebel group backed by Rwanda's government, took over the area in April 2024. The heavily-armed M23 rebels, who claim to be fighting for the overthrow of the Kinshasa government and the safety of Congolese Tutsi minorities, have captured more mineral-rich land in eastern Democratic Republic of Congo this year.
M23 and DRC pledged to sign an agreement in Doha, Qatar, at a ceremony this month. The United States mediates parallel talks between Congo, Rwanda and a potential investment of billions in the event that hostilities end.
The United States Treasury sanctioned on Tuesday other alleged participants of minerals smuggling, including PARECO FF, a progovernment Congolese milita that the U.S. claimed controlled the Rubaya mine site from early 2024 to 2022, before M23 took over.
PARECO-FF was not available for comment.
A senior U.S. official was asked at a briefing by the press why Washington targeted PARECO-FF and not M23. He noted that sanctions have been placed on M23 since 2013 because it has fuelled conflict in the area.
John K. Hurley said that the Treasury Department would not hesitate to act against groups who deny the United States or our allies the access to critical minerals essential for our national security.
Jason Stearns is a former U.N. inspector in Congo. He said that the fact that M23 wasn't targeted by the new mining sanctions was surprising.
M23's advances pose the greatest threat to Kinshasa's government in the last two decades. The conflict stems from the 1994 Rwandan genocide in which around one million members of Rwanda's Tutsi group were killed by Hutu-led militias.
The Rwandan government has denied for years that it is involved in the trade of coltan, looted by its neighbor, or that it supports M23. Rwanda's ruling Tutsi majority party shares the same concern as M23 about the alleged threat of rival Hutu groups in eastern Congo. According to a U.N. document reviewed by the Associated Press on July 3, Rwanda had deployed between 1,000 and 1,500 troops into rebel-controlled Congo areas as of April.
M23 controls two important Congolese towns - Goma, and Bukavu on the Rwandan border. U.N. Investigators claim that Congolese minerals, which are often transported illegally to Rwanda through these cities, are mixed with Rwandan coltan before being exported.
M23, the Rwandan government and the Congolese government did not respond to comments. Congolese officials accuse Rwanda of fomenting conflict in order to plunder Congo’s mineral wealth.
A U.N. December report stated that the size of the trade increased after M23 captured Rubaya. U.N. report: The rebels established a parallel government that controlled mining, trade, transportation, and taxation on the minerals produced in Rubaya.
Reporters visited Rubaya, in March of this year. M23 officials told them that the rebels had levied a 15% tax on the coltan the mineral traders purchased from the informal miner's who worked the area. According to a U.N. report from December, M23 collected $800,000 per month from levies on coltan mined in eastern Congo.
MUD AND MOTORBIKES
Rubaya is a beehive of pits that are so vast and complex, it's a huge undertaking to reach them. Journalists who visited the mines in March were forced to abandon their Land Cruisers when they became stuck on a muddy road leading from Goma. The journalists walked for 5 km (3 miles) in order to get to the town, and then they hopped onto motorcycles with rebel officials so that they could reach the mines.
The activity in Rubaya starts before dawn when thousands of miner descend into the pits cut in the rolling hills of Congo’s North Kivu Province, where many work in 12-hour shifts.
Tunnels can reach a depth of up to 15 meters (49 feet). Porters transport the ore fragments to shallow basins filled with water dug by laborers. Other workers, including children and women, then wash and separate the ore from debris and sand before laying it out in the sun to dry.
The journalists were closely supervised by M23 personnel who were unarmed throughout their stay in the mining area. Reporters saw rebel officials jotting in a notebook the number of sacks that each porter, covered in fine white dust, carried to each collection point. Once the ore has dried, it's stacked onto motorbikes and transported to Rubaya where it is sold by traders.
Pascal Mugisha Nsabimana (32), a miner from Congo, was told by a M23 chaperone that it is better to work under rebel occupation than to labor under the supervision and control of the Congolese military or its allies who fled the area when M23 invaded the region last year.
In the past, "there was a lot of harassment, a lot of taxes and we, as diggers, often were not paid." The miner added that even when they did get paid, it was not enough. He said that under M23, his day rate has at least tripled.
According to over a dozen sources, including former and current smugglers as well as miners and businessmen, in the months immediately following the M23 takeover of Rubaya, Congolese troops remained along the border. Smugglers then used motorcycles to sneak ore into Rwanda by using backroads. According to two former smugglers, who transported coltan in this manner until last year, the journey could take a whole day. The two ex-smugglers said that they would load their bikes with three bags of 50 kilograms each time and receive about $34 per trip for delivering the coltan to traders.
Nine of these people stated that M23's changes have been a game changer for efficiency. Motorcycles are not the main means of transportation anymore, and they are only used to transport the coltan to Rubaya from the mine. According to the U.N. report and the people, ore is then loaded into SUVs, pickups, and other vehicles that can haul anywhere between two to twenty tons. It is also faster. Coltan trucks are now able to pass through Goma on paved roads, since M23 has taken control of the border city and driven Congolese forces out. This, according to people, has shortened transport times.
Experts at the United Nations and human rights activists warn that illegal mining profits are used to fund conflict. The trade, they say, has not brought much wealth to the locals and child labor is very common. At least 12 children were seen working in the Rubaya Mine: Boys entered the shafts and hauled out the ore, then carried it to basins where the girls washed and dried the coltan alongside the adults.
Gregory Mthembu Salter, former U.N. expert in Congo, who is now a consultant on conflict minerals said that efforts made by the mining industry and U.N. agencies, as well as non-government organisations, to clean the supply chain of the region and prevent human right abuses, which began around 2010, have failed.
Mthembu Salter, Phuzumoya Consulting's director, said: "The same thing has happened 15 years after."
U.S. INVESTORS LOOK AT RUBAYA RICHES
Some U.S. investors have also targeted Rubaya's riches in coltan as President Donald Trump tries to broker a deal to end conflict and promote the development of the mineral wealth of the region. These riches in Congo include cobalt reserves, gold, diamonds, copper, and lithium. The formal mining sector of the country is currently dominated by Chinese firms.
According to a source with direct knowledge, Texas hedge fund manager Gentry beach, who is the chairman of America First Global, and raised funds for Trump's 2016 election campaign, was part of a group that sought to negotiate the rights to Rubaya Mine. Gentry Beach's interest in Congo coltan was first reported by The Financial Times.
Sources told us that Beach's Group had proposed the Congolese Government to take a majority stake, while Kinshasa retained a 30% share.
Beach expressed his interest in a project but refused to give any additional details.
Some U.S. legislators are pushing back. In a letter sent to Trump and U.S. secretary of state Marco Rubio on August 8, more than 50 Democratic members of congress criticized the lack of transparency of the DRC negotiations by the Trump administration. The Democratic congress members also expressed concern about a possible conflict of interest if a Trump ally was angling to obtain rights to develop Rubaya Mine.
Anna Kelly, White House Deputy press secretary, said in an email statement dated 5 August that the agreement Trump arranged between Congo and Rwanda has the potential of leading to lasting peace in the region. The president's vision is a "win-win outcome where all parties benefit--economically and politically--through cooperation and shared prosperity," the statement said. She did not answer a question about the letter sent by congressional Democrats.
The U.S. State Department made no comment. In a statement released on August 1, the State Department stated that it would support efforts made by Rwanda to promote security and economic co-operation. According to the statement which didn't go into detail, heads of state will be invited to Washington soon for a summit.
The U.S.-backed agreement does not include the M23. The rebel group is a part of a parallel, separate mediation that Qatar has led to try and end hostilities. Success in the Doha talks is crucial to a lasting peace and to making Rubaya a safe place for Western mining interests.
Some analysts and diplomats are unsure about the chances of a quick resolution.
Congo and the M23 rebels agreed in Doha that a deal would be reached by August 18th. The U.N. says that the U.S. has a responsibility for the deaths of 319 civilians last month in eastern Congo.
Could not independently confirm these killings. M23 leader Bertrand Bisimwa said to the news agency that the group would investigate. He also suggested reports of atrocities were a "smear" campaign against the insurgent.
The U.S.-brokered agreement calls for Rwandan soldiers to withdraw from Congo. Last month, Rwandan President Paul Kagame stated that he wasn't sure if the agreement would stand.
Kagame stated that the Congo must first fulfill its promise to defeat the Democratic Forces for the Liberation of Rwanda, an ethnic Hutu group based in eastern Congo and linked to the Rwandan Genocide. Kigali views the FDLR as an existential danger.
Josaphat Muamba, a Congolese Ph.D. student at Ghent University, Belgium, said that suppressing the militias would be a difficult task for the DRC military, as it is not present in vast swathes M23-controlled land.
Musamba stated that it was difficult to neutralize FDLR while M23 were still in place and the Congolese Army had not been redeployed. He called both peace initiatives "piecemeal efforts" that don't deal with "the realities on the ground."
A senior diplomat, who closely follows the events in Rubaya, stated that another formidable task would be to transform Rubaya's crude system for coltan extraction.
The diplomat stated that "no one speaks about the feasibility of granting these mining concessions or running these concessions. Especially since the entire mine is artisanal" done almost exclusively by hand.
(source: Reuters)