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State Dept official: US companies are eyeing Congo mining assets including Rubaya
A State Department official stated that U.S. mining companies have shown "significant" interest, particularly in the area of Rubaya, which is controlled by rebels. The official added that investment?in this area would need to be aligned with Washington's peace efforts. In early 2018, Congo sent a list of strategic assets to Washington, including gold, copper-cobalt and manganese projects, for U.S. investment as part of a mineral partnership. Through the Minerals Partnership, the U.S. hopes to influence the Congo's critical minerals supply chain through peace and investment agreements. The U.S. is stepping up its efforts to secure vital mineral supplies worldwide for a strategic stockpile of metals as it tries to reduce its reliance on China and counter China’s dominance in Africa. Officials from the U.S. have been contacting the private sector to get their feedback on the assets list. The official confirmed that "we have significant interest" but refused to identify the companies. He said "the conversations are just beginning." The Congolese government and the?M23 did not respond immediately to questions about U.S. companies' interest in mining assets. RUBAYA COLTAN MINING IN FOCUS The Rubaya coltan deposit, which is one of the richest tantalum deposits in the world, was included on the list. Kinshasa is trying to attract U.S. investments into the mineral-rich, but conflict-torn eastern Congo. The official stated that "Rubaya" is something in which we are still interested. There are also a number of companies interested in the area, so discussions are moving forward. Rubaya may give Washington access tantalum, which is a highly-sought metal that can be produced from coltan, and used for capacitors, aerospace parts, and nuclear technology. Officials said that investments must run in parallel with the U.S. peace agreement to end the fighting in eastern Congo where thousands have been killed. "Rubaya?is in many respects at the heart of what's happening in eastern DRC now." "The commercial side cannot be separated from this," the official said. M23 has criticized the U.S. - Congo?partnership for being deeply flawed and unconstitutional. M23 officials told a February M23 official that Kinshasa offered Rubaya as a gift to Washington despite not having control over the site. They wanted to get Washington to help the Congolese government militarily recover the area. VIRTUS DEAL Virtus Minerals, a U.S. company, announced this month that it is working to restart Congolese cobalt producer Chemaf’s mines. This marks the first time a mine has been acquired under the U.S. - Congo minerals partnership. The official from the State Department said, "We see that as an important foundational project for this agreement." It's all about establishing confidence in the business climate for the U.S. and U.S.-aligned sectors. Officials said that investors were most concerned with Congo's fiscal security. "These companies...must be able to tell their shareholders and boards with certainty the fiscal, regulatory and tax situation throughout the lifetime of their investment." (Reporting by Olivia Kumwenda-Mtambo. Maxwell Akalaare Adombila and Ange Adihe Kasongo contributed additional reporting from Dakar and Kinshasa. Jane Merriman (editing)
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Sources say that Pakistan has put a $1.5 billion sale of Sudanese weapons on hold due to Saudi objection.
Two Pakistani security sources and a diplomatic source have confirmed that Pakistan has suspended a $1.5billion deal to provide weapons and 'jets to Sudan after Saudi Arabia demanded the agreement be terminated and stated it would not finance the purchase. Conflict between Sudan's army, and its paramilitary Rapid Support Forces, has caused the worst humanitarian crisis in the world for three years. It is now a focal point for foreign interest and threatens to split the Red Sea nation, which is a major producer of gold. Saudi Arabia brokered the deal in January, but Riyadh did not disclose any financing at that time. The Pakistani military was negotiating several defence sales after its jets, weapons systems and skirmishes against India in May of last year gained attention. Saudi Arabia has been one of Pakistan's most important allies, providing crucial loans and financing for Islamabad’s struggling economy. Since signing a mutual defence agreement last year, their relationship has grown. One of the sources of security said that Saudi Arabia had signaled to Pakistan that it should cancel the deal once it dropped its idea of funding it. A request for comment was not immediately responded to by the Saudi government's media office. Sudan's military did not respond immediately either. The Pakistani army did not reply to a comment request. The air force and military had not confirmed that an agreement was on the way. Sources added that Riyadh was advised by some Western countries to avoid proxy wars in Africa. Saudi Arabia and United Arab Emirates have supported opposing sides in conflict ridden?countries throughout the?region including Sudan. Saudi Arabia, which has backed the Sudanese army, has also been accused by the UAE of providing logistical assistance to the RSF. The UAE denies this accusation. Sources said that a meeting in March between Sudanese army leaders and Saudi authorities at Riyadh led to the termination of Saudi financing. A $4 billion deal with the Libyan National Army was reported by? The second source stated that the Saudis were "revisiting" their strategy in both countries. Reporting by MubasherBukhari, with additional reporting by Ariba Sayeed and Saad Shahid in Islamabad; Timour Azhari and Khalid Abdelaziz in Dubai; and Sharon Singleton.
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IAI reports that due to the war, Gulf Aluminium production fell 6% in March.
The International Aluminium Institute reported that the primary aluminium production rate in the Gulf region fell by 6% from the previous month in March. They cited an "obvious effect on the market" due to the Middle East war. The IAI data provides an initial estimate of the damage to the aluminium supply due to the conflict. This has seen two of the largest smelters in the region attacked by Iran and impacted the shipping to export markets. The IAI said in a press release that the daily production of 'the Gulf countries', which account for around 9 percent of global aluminum smelting capability, dropped to 15,963 tons on average in March from 16,997 in February. Jonathan Grant, IAI Secretary-General, said: "We don't yet have the final March figures from?all of our members smelters. We can expect that the actual production will be even lower when the complete?dataset is available in May." IAI reported that global primary aluminium production in 'March increased 0.9% on a year-on-year basis to?6.302 millions tons. However, the daily rate fell 0.3% compared to February. Reporting by Tom Daly, Editing by Joe Bavier
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ERG anticipates limited recovery of Congo cobalt hydrxide production after 2025 deliberate cutback
Eurasian Resources Group announced on Monday that it would 'cut cobalt hydroxide production in the Democratic Republic of Congo in 2025 because of an export ban and quota system. It plans to only a partial recovery this year. DRC, which is the largest producer of cobalt - a key component in electric vehicle batteries - imposed an export ban for several months at the beginning of 2025, before switching to a quota system. The country was facing a glut of the metal and a slump in prices. It also established a cobalt strategic reserve. ERG intentionally reduced cobalt-hydroxide output by 70% to 5,700 tons in 2020 from 19,00 tons in 2024. The Luxembourg-headquartered group ?told it plans to double cobalt production in 2026 from 2025. ERG's quota of DRC exports for 2026 includes 12,325 tonnes of cobalt, including the unused portion from the fourth quarter of 2025. In DRC, it competes against miners such as China's CMOC, and Glencore. These are the top cobalt producers in the world. Access World data indicates that Congo exported 48,800 tons of cobalt during the first quarter of 2018, compared to 123,000 tons at the same time in 2025 when exports had been frontloaded before the export ban. ERG, a Kazakh company in which the Kazakh Government owns 40%, produces ferrochrome, aluminium, and iron ore primarily in Kazakhstan. Its Central Asian business accounts for most of ERG's core earnings. Last year, ERG's African business, which is dominated by the copper and?cobalt produced in DRC, contributed 24% to its $2.1 billion EBITDA. This contribution has increased due to improved cost-efficiency and increased production. The Frontier mine in DRC has expanded its open-pit to increase the production of copper concentrate by?25%, which will reach 47,600 tonnes in 2025. ERG's copper production will increase by 9% this year to 162,000 tonnes. (Reporting and editing by Alexander Smith; Polina Devlin)
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MORNING BID AMERICAS - Green light, red Light
What's important in the U.S. and Global Markets Today By Mike Dolan. Editor-at-Large for Finance and Markets Stop-go, stop-go. The Friday market excitement at the opening of Strait of Hormuz was tempered again on Monday, as Iran's green light turned to red once again over the weekend due to?the United States continuing blockade of Iranian port. As Iranian troops opened fire on tankers and the U.S. seize an Iranian cargo vessel, tensions grew. The markets and the belligerents are not sure what exactly was agreed before Iran temporarily opened the waterway on Friday. Below, I'll go into more detail. Listen to the Morning Bid Daily Podcast, where I discuss the continued growth of tech and the political turmoil in Britain. Subscribe to the podcast and hear the journalists discussing all of the latest news on markets and finance, seven days a weeks. GREEN LIGHT / RED LIGHT: Further peace?talks could be in the works this week. U.S. envoys are reportedly headed to Islamabad, but Tehran has stated that it will not take part. Wednesday will see the expiration of a two-week ceasefire between the sides. Oil prices have recovered 5% on Monday after a drop of 9% on Friday. Crude prices are still below $100 per barrel. On Saturday, 20 ships passed through the disputed strait, the most since March 1. The weekend tensions in Asia did not affect the stock markets as much as they have been affected by similar news reports over the last few months. They may be referring to Wall Street's gains on Friday of over 1% and the 13th consecutive day?of gains by the tech-heavy Nasdaq, the first time since 1992. Unlucky 13? The tech optimism has once again surpassed geopolitical worries - and is partly driven by these concerns. Tesla will be the very first company to announce its first-quarter results on Wednesday. In the meantime, European shares fell early Monday morning, Wall Street futures dipped, and dollar rose. But, more broadly, it seems that the beginning of an end to the Gulf conflict is in sight. Even if it takes weeks or even months to restore physical oil supplies to normal. China kept its key interest rate unchanged on Monday while British markets watch as the pressure on Keir starmer grows. Starmer will address Parliament today about what he knew - or did not know - about the security screening of the former U.S. Ambassador Peter Mandelson. Mandelson was fired last September for his links with the late sex offender Jeffrey Epstein. The markets are less worried about a new vote than they are by the possibility that Starmer will be ousted by his own Labour Party. Chart of the Day Even if all guns cease to fire, it will still take months and years to restore the flow through the Strait of Hormuz to its pre-war level. Even under benign conditions, a full rebalancing of the global tanker fleet, and a return to pre-war loading rhythms in the Gulf, will take at least 8-12 weeks. Watch today's events * Canada March CPI (8:30 a.m. EDT) * ?U.S. Envoys are due to arrive at Islamabad in connection with reported talks Want to receive the Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is committed to the Trust Principles and strives for integrity, independence, neutrality, and impartiality.
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USA Rare Earth acquires Brazil's Serra Verde Serra Verde for $2.8 Billion
USA Rare Earth announced on Monday that it would acquire Brazilian 'rare earths' miner Serra Verde, for $2.8 billion, in cash and shares. This is another step in the company's broader strategy to create a unified operation encompassing mining, processing, and magnet -making. A statement stated that the U.S. firm will pay $300 in cash for the transaction and 126.9 in newly-issued shares. The deal is expected to be completed in the third quarter 2026. Serra Verde said it also entered into a 15 year agreement on Monday to supply 100% its production in the initial phase of the mine to a special-purpose vehicle funded by the U.S. Government and private sources. USA 'Rare Earth signed a $1.6billion debt-and equity funding package in January with the U.S. Government, while privately-held Serra Verde inked a $565m financing agreement with Washington in Feb. Barbara Humpton, CEO of USA Rare Earth, said that the Pela Ema Mine in Serra Verde is a unique asset. It's also the only mine outside Asia that can supply all four magnetic rare Earths on a large scale. MINE RICH in HEAVY RARE ARTHENS The forecast shortages of heavy rare Earths such as dysprosium, terbium, and terbium may be a major obstacle to the West's efforts to develop domestic supply chains for rare earths and permanent magnetics. Serra Verde is a mine that has a high concentration of heavy rare earths. This makes it more attractive than other Western deposits. The company has yet to reach its full production, which will be approximately 6,500 metric tons of rare earth oxides per year by 2027. Serra Verde's owners are private equity groups Denham Capital and Energy and Minerals Group, led by Mick Davis, the former head of Xstrata. USA Rare Earth shares fell by 8% before the market opened, but they are up 68% since their last closing. (Reporting and editing by Toby Chopra & Kirby Donovan; Eric Onstad)
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Dutch government offers tax incentives for increasing fuel prices
The Dutch government announced temporary tax breaks on Monday to compensate for the rising cost of fuel. It also said it was preparing a broader package of measures in case energy prices worsen. The government allocated around 1 billion euro ($1.2 billion) to temporary tax relief measures for commuters and truck drivers, but did not lower fuel taxes as many of them requested. These measures include targeted support to lower-income people with energy bills and a?support for homeowners to reduce their consumption. The government stated that there are no immediate fuel shortages as European oil, jet fuel and diesel supplies are sufficient to meet the?demand up to one year. The government confirmed earlier reports that it would activate the first stage of an 'energy crisis plan', where energy markets will be closely monitored and further measures prepared. The government is now implementing the four-stage plan that was created to deal with the upcoming energy crisis triggered by Russia’s invasion of Ukraine.
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On the U.S. waiver of oil volume, the Kremlin says that you cannot ignore Russia.
When asked about the waiver of U.S. sanctions on some Russia oil exports on Monday, the Kremlin said that Russia is a responsible player on global markets for energy and it's hard to ignore its export volumes. Donald Trump's administration renewed on Friday a waiver that allows countries to purchase sanctioned Russian crude oil at sea for about a week, despite lawmakers accusing the government of being too lenient with Moscow while?its war against Ukraine continues. Russia is the world’s?third largest oil producer and?the second biggest crude exporter. "Russia is a very responsible and important player on the global energy market." "The markets are experiencing difficult times right now," Kremlin spokesperson Dmitry Peskov said in a daily press conference. He said, "It is hard to ignore or not take into account Russian volumes." This move is part of the administration's efforts to control global energy costs, which have risen during the U.S. Israel war against Iran. The move came after Asian countries, who were suffering from the global energy crisis, asked Washington to allow alternative supplies to reach the markets. Kirill Dmitriev, special envoy to Russian President Vladimir Putin, said that an extension of the U.S. waiver would affect another 100,000,000 barrels?of Russian oil. This will bring the total volume affected with both waivers up to 200,000,000 barrels. (Reporting and Writing by Anastasia Lyrchikova; Editing by Vladimir Soldatkin/Guy Faulconbridge).
Gold falls as tensions between the US and Iran increase due to inflation woes, a stronger dollar and rising US interest rates
Gold prices dropped on Monday due to the stronger U.S. dollar and renewed inflation concerns?after a second closure of the Strait?of?Hormuz?pushed oil prices higher.
As of 0930 GMT spot gold was down 0.7% to $4,792.89 an ounce after reaching its lowest level since April 13 earlier in session.
U.S. Gold Futures for June Delivery fell by 1.4% to $4.812.60.
Oil's rise after the weekend chaos surrounding the Strait?Hormuz ensures that inflation risks remain tangible, offsetting the allure of gold as a safe haven asset. Han Tan, chief analyst at Bybit, said that the precious metal has taken a backseat in the current conflict to the dollar as the preferred safe-haven.
Spot gold prices are expected to remain at these low levels, below $5,000, unless there is a sustained and meaningful de-escalation of the conflict.
The U.S. announced on Sunday that it had seized an Iranian cargo ship which tried to break its blockade. Iran responded by saying it would retaliate. This has heightened fears of a return of hostilities.
Stock futures dropped and oil prices rose more than 6% as tensions in the Middle East prevented shipping into and out of Gulf and kept investors on edge.
Dollar index rose, increasing the price of greenback bullion for holders of other currencies. Benchmark 10-year U.S. Treasury Yields increased, increasing the cost of holding non-yielding gold.
Gold is considered a safe haven and inflation hedge during times of geopolitical and economic uncertainty. However, the rising costs associated with the war in Iran has stoked inflation fears and pushed yellow'metal down on the expectation that the U.S. Fed Reserve will tighten monetary policy.
Gold's recent recovery is not over yet, as long as the structural drivers of demand continue. "Central bank buying, currency debasement and de-dollarisation trends have faded, but they are still alive and can help support gold," said Nikos tzabouras senior analyst at Jefferies owned Tradu.com.
Silver spot fell by 1.8%, to $79.39 an ounce. Platinum dropped 1.4%, to $2,073.75, while palladium declined 1.1%, to $1,542.25. (Reporting by Anjana Anil in Bengaluru; Editing by Kevin Liffey)
(source: Reuters)