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No one bids on the auction for Russia's stake in UGC, a gold miner.
The Russian state did not auction the seized stake in Uzhuralzoloto, a gold producer, that it had taken last year. A state auction website showed this on Monday. It said no one had bid. Last July, a Russian court decided that the majority of UGC owned by Konstantin Strukov should be confiscated and transferred to state. This was part of an 'overall pattern of nationalisations for Russian companies. The Russian federal property management agency Rosimushchestvo auctioned off Strukov’s assets earlier this month. They valued them at $2.22 billion (?162.02 bn roubles). His former 67.2% share in UGC, one of Russia's 10 largest gold miners, was valued at 140.4 billion roubles. The state auction website announced on Monday that the planned sale failed. The website stated that "the bid was declared invalid as no applications were received by the deadline to submit applications." It wasn't clear if there was a plan for a new auction. Last year, prosecutors moved to seize Strukov's stake after accusing him and "several other" of obtaining their properties "through corruption." Strukov is not in custody and hasn't been charged. The Russian Finance Ministry has put up for auction a number confiscated 'assets, in an attempt to replenish the 'federal treasury. In January, Russia sold one of its largest and modern airports, Moscow’s Domodedovo to a subsidiary of another Moscow Airport, Sheremetyevo for just 66 billion Rubbles. This is only half the price it was originally listed at, 132.3 billion Rubles. $1 = 72,9000 roubles (Reporting and writing by Anastasia Lyrchikova. Editing and proofreading by Mark Trevelyan).
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Estonian spy chief: Putin is faced with'very hard choices' in Ukraine, as sanctions bite
Estonia's chief of foreign intelligence said that Russian President Vladimir Putin is limited in his options for a victory in Ukraine, as his military forces are unable to make significant progress on the battlefield and Western sanctions are eroding his resources. Kaupo Rosin is a leading'spy' on NATO’s eastern flank. He told us that Russia was losing more men in its?fifth full-scale year of war than they were recruiting. A general mobilisation, he said, would be unpopular and could undermine stability. "All these factors are creating a scenario where some people, including those at the highest levels in Russia, understand that they have an enormous problem. In an interview with Tallinn, he stated that it is hard to know what Putin's thoughts are on the matter. However, I believe all of these factors have started to influence his decision making. In recent months, Russian forces have made some of the slowest advances in Ukraine since 2023 - one year after they invaded Ukraine. The economy of Russia, which is worth $3 trillion, contracted by 0.3% during the first quarter. Putin has said that government measures to boost Russia's economy are starting to yield positive results. He has also repeatedly stated that Russian forces will continue to fight until they achieve all of their goals. Rosin stated that the "real, real hurt" of sanctions against the financial sector was the primary reason for the "bad" financial situation in Russia. He also said that punitive measures taken on Russia's crude oil exports are also limiting the country's income. It's a very difficult choice for them right now. In this situation, it's difficult to predict what they will do. Estonia, which has a land border to Russia, is one of the most vocal supporters of Ukraine within NATO and in the European Union. It has also urged its allies repeatedly to increase pressure on Moscow. "My message is to push ahead with (sanctions). He said that now is not the right time to hesitate. No sign of a 'big breakthrough' towards peace Unidentified, another European intelligence chief said that there are clear signs of increasing pressure on Russia but that this has not yet changed Moscow's war calculus. The chief stated that it was difficult to imagine Russia abandoning its goal to take the entire Donbass area. Russia insisted that Ukraine withdraw from eastern Donbas as part of any agreement, but Kyiv rejected this proposal. The Donbas region includes the Russian-occupied Luhansk province and the Donetsk area, parts of which Ukraine was able to defend for years against the Russian offensive. The spy chief said that it did not appear as if Russia was attempting to change its war objectives or if there was going to be a "big breakthrough". The spy chief characterized Russian society as resilient. The official stated that it was "wishful thinking" to think that Russia's leadership is in some way diminishing or Putin has been challenged (domestically )..."). BIG MILITARY AMBITIONS The Estonian spy chief said that Russia would not abandon its goal of subjugating Ukraine as long as Putin was in power. They also predicted they would keep a large military force on the borders of Ukraine even after the war ended. He also said that once the fighting has ended, Moscow will expand its military along NATO's border and "achieve military dominance" from the Arctic to the Black Sea. He said that the Russians' military ambitions were "very, very large" and predicted they would continue to carry out a sabotage campaign in the West, regardless of the danger it poses to civilian lives. Russia has always denied involvement in any sabotage plans or attacks and dismisses these accusations as Western scaremongering. Rosin stated that "Russia views this (such attacks as) something which does not ignite a war." (Editing by Chizu Nomiyama).
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Anglo American sells Australian coal mines up to $3.88 Billion
Anglo American announced on Monday that it would sell its steelmaking mines in Australia for up to 3,88 billion pounds to UK-based Dhilmar. The move is part of Anglo American's strategy to exit the sector and reduce debt, as well as streamline assets, ahead of a planned merger between Teck Resources, Canada, and Anglo American. Anglo, listed in London, is selling the mines located in Queensland's Bowen Basin - the world's leading steel-making coal region - as part of its plan of divesting -or spinning off - non-core assets before completing the merger between Teck Resources and Anglo that will create a heavyweight focused on copper. The company stated that the deal includes $2.3 billion in cash up front and up to $1.58 Billion linked to coal prices. Proceeds will be used to reduce debt. Anglo CEO Duncan Wanblad stated?in a statement that "Through this deal, we will complete?our exit from steelmaking coal." Peabody retracted its $3.78billion bid for Anglo’s Australian coking coal assets last year after the companies couldn't agree on a lower price in the wake of a minefire. Anglo said that it will continue to pursue arbitration against 'Peabody for the failed deal' in parallel with Monday's deal.
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Anglo American sells Australian coal mines up to $3.88 Billion
Anglo American announced on Monday that it would sell its steelmaking mines in Australia for up to?to $3.88billion to UK-based Dhilmar. The move will exit the sector and reduce debt, as well as streamline assets ahead of an upcoming merger with Canada's Teck Resources. London-listed Anglo is selling mines in Queensland’s Bowen Basin - the world’s leading steelmaking coal region - as part of the company's plan to 'divest or spin-off' non-core assets before completing its merger with Teck Resources, which will create a heavyweight copper focused firm. The company stated that the deal includes $2.3 billion in cash upfront and up to 1,58 billion dollars linked to coal price, with a portion of the proceeds going to reduce debt. Anglo CEO Duncan Wanblad said in a?statement that "through this transaction we will complete our exit from steelmaking coal". Peabody retracted its $3.78billion bid for Anglo’s Australian coking coal assets last year after the companies couldn't agree to lower the price in the wake of a minefire. Anglo said that it will continue to pursue arbitration with Peabody in parallel to Monday's deal.
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China's aluminum output increases in April due to strong profits
According to data released by the Chinese government on Monday, China's aluminum production remained high in April. According to the National Bureau of Statistics, aluminium production in the?country grew by a?3.1% year-over-year to 3,87 million metric tonnes in April. China produced 15.33 million tons of metric tonnage in the first four month of this year. This is a 3.5% increase from the same period last. The price of aluminium remained high, largely due to the 'Iran war', which effectively shut down the Strait o f Hormuz, and caused major damage to the facilities that produce the light metal in the Gulf region, which represented nearly 9% world production. After a jump of more than 10% in March, the benchmark three-month contract for aluminium rose only 0.20% in late April. The higher prices led to better margins and prompted Chinese producers?to keep production high. According to data released earlier this month by?customs, China's exports of unwrought aluminum and its products were?strong? in April, increasing 15%. This was the highest level in at least a calendar year. The production of non-ferrous metals, including lead, zinc, copper, and aluminium, rose by 2.8% from the previous year to 6.94 million tons. The year-to-date production was up?3.3%, at 27,45 million metric tons. Other non-ferrous materials include tin and antimony. Mercury, magnesium, titanium, and mercury are also available. (Reporting and editing by Mrigank Dahniwala; Lewis Jackson and Dylan Duan)
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Australia union declares workers will strike at Inpex LNG plant from May 27
The Offshore Alliance said that the union grouping has served a 'notice of strike' at Inpex’s Ichthys facility in northern Australia, effective May 27. This could further tighten global energy supply. In May, 326 out of 346 unionized workers at the 9,3 million-metric-ton-a year facility near Darwin voted to strike over pay and conditions. Lawyers 'for the Offshore Alliance', a grouping of Maritime Union of Australia & the Australian Workers Union served the Japanese company with an intent to strike from May 27 through June 10. They said that months of talks had not made any progress. In a statement, a spokesperson stated that "we have made it clear to Inpex we will not accept the shortchanging of our bargaining demands simply because Inpex couldn't be bothered to read our claims for 6 months." The union group informed Inpex that it would continue to negotiate with the company during meetings scheduled for May 25 and 26, Inpex didn't immediately respond to a comment request. Japanese gas and power utilities, which are Ichthys LNG's main customers, are closely watching any disruption. Australia is Japan's biggest LNG supplier. The country is presently?facing an?imminent supply?crunch? due to the Iran War and the rising demand for air conditioning as Japan enters summer. (Reporting and editing by Christian Schmollinger, Kate Mayberry and Alasdair pal in Sydney)
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Overnight, Russian attacks in Ukraine kill one and injure over 30 people, say officials
Overnight, Russia launched drones, airstrikes, and'shelling' at Ukraine, targeting cities like Odesa, in the south, and Dnipro, in the southeast. One person was killed and more than 30 others were injured, Ukrainian officials reported on Monday. Serhiy Lysak said that drones had hit residential buildings as well as a school, and a kindergarten, in Odesa's major Black Sea port. He added that a boy aged 11 and a man aged 59 were both injured. Oleksandr Hanszha, regional governor of the region, said that Russia had launched a separate missile attack on Dnipro, in the south-east of Ukraine. The attack injured 18 people, including two children. Ivan Fedorov added on Telegram that three people had been injured in the Zaporizhzhia region's southeastern area following the attacks overnight. Oleksandr Prokudin, regional governor of Kherson region, said that one person was killed and nine injured in an attack on the southern region. Interfax, citing Russia's defence ministry, reported that drones had been shot down in Russia overnight, over areas such as Rostov and Belgorod, located in the south. Officials?said that at least four people died this weekend, three of them in the Moscow area, after Ukraine launched the biggest overnight drone attack on the Russian capital in more than a year. It was impossible to independently verify the battlefield reports. Both sides deny deliberately targeting civilians. (Reporting and editing by Himani Sarkar, Clarence Fernandez, and Jekaterina Glubkova from Tokyo)
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Australia's Santos achieves first oil at Alaska project
Santos, Australia’s No.2 oil &?gas producer said on Monday that it had?reached first oil in its Pikka project, located in Alaska, U.S.A. Shares of the Adelaide-headquartered company rose as much as 3.1% to A$8.12, their highest ?since April 13, while the broader S&P/ASX 200 benchmark index ?was down 1.4% by 0450 GMT. Stocks of the Adelaide-based company rose as much as 3.1% to A$8.12, their highest level?since April 13, while the broader S&P/ASX 200 benchmark index?was down 1.4% by 0450 GMT. Craig Sidney is a senior investment advisor at Shaw and Partners. He said, "This announcement is positive in light of the?strong oil price and?increasing production outlook". Santos stated that the Pikka project will reach a plateau of gross production of 80,000 barrels per day by?the third fiscal quarter 2026. The first revenue is expected two to three month after?first oil. Sidney stated that the increase in production is meaningful and significant. Santos, the operator of Pikka?, holds 51% while its partner Repsol has the remaining 49%. The company stayed true to its annual production and sales forecasts last month despite a temporary outage at a facility for gas and weather-related disruptions that affected the first-quarter output. (Reporting and editing by Tom Hogue, Subhranshu Sahu, and Nikita Marie Jino in Bengaluru)
Australian shares fall to a record low of over a month as rising oil prices intensify inflationary concerns
The Australian share market closed Monday at its lowest level in over a month, with mining and gold stocks dragging it down. This was due to a fall in commodity prices. Meanwhile, the stagnation of Middle East peace negotiations boosted crude prices, fueling inflation fears.
The benchmark S&P/ASX 200 ended 1.5% lower, at 8,505.30 point, its lowest close since March 31,
As commodity prices fell, the number of miners dropped 2.8% to a new low.
BHP and Rio Tinto fell between 2.8% to 3.6%.
Gold miners fell 4% while real estate dropped about 3%, and financials fell 0.3%.
Santos and Woodside Energy both reached a new high of 2.7% after the first oil was produced from the initial phase in Alaska.
Oil prices increased after a drone attack set off a fire in a nuclear power station in the United Arab Emirates. This compounded global energy shocks that have caused central banks to reassess their growth and inflation outlooks.
The Australian central bank has raised its inflation forecasts, downgraded the outlook of economic growth and increased its main cash rate to 4.35%.
The market was already fragile prior to today. Mark Gardner, MPC Markets' founder and chief executive officer, said that the RBA has 'just revised' its inflation forecasts. Bond yields have also risen globally. Now, oil is spiking as a result of the Hormuz crisis, which won't be resolved any time soon.
Tuas was the worst performing benchmark, falling as much as 68.7%, to its lowest level since September 2023, after Singapore suspended the review of the merger between Simba Telecom's M1 and Keppel.
The benchmark S&P/NZX 50 Index in New Zealand fell 1.6%, to 12,762.92 - its lowest closing since March 30. (Reporting by Anjali Singh in Bengaluru; Editing by Nivedita Bhattacharjee)
(source: Reuters)