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Shenghe, a Chinese rare earths processor, sees a minimal impact of the US feedstock ban
Shenghe Resources, a Chinese company, said that the suspension of shipments from its U.S. partners of rare earth raw concentrator will not have a significant impact on production because of the company's diverse supply chain. MP Materials, the owner of the U.S.'s only rare earths mine said that it has stopped shipping these vital minerals to China due to the 125% tariffs Beijing imposed on U.S. imports as a retaliation against U.S. tariffs imposed on Chinese goods by President Donald Trump. Rare earths is a grouping of 17 metals which are used in the production of magnets for electric cars, mobile phones and other electronic devices. China, the dominant producer in the world, halted this month exports of rare earths that were added to an export control list as a form of retaliation. MP Materials, which is a major player in the rare earths industry, imports large quantities of concentrate from other countries to feed its processing plants. Shenghe stated in a press release that "we have created a diversified channel of supply for rare earth raw materials. We use monazite as an alternative to Sichuan, and we also supply other countries." "The supply agreement with MP remains valid." Shenghe did not provide details. In January 2024, the company and MP Materials renewed a offtake agreement through Shenghe’s subsidiary in Singapore. The agreement will remain in place for two years but can be extended by another year. Customs data show that China's imports from the U.S. of rare earth raw material have declined for the past two years. They fell by 13.7% last year and 16.9% in 2023.
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VEB, a Russian copper mining company, will invest $13.4 billion in the country's Far East
The Russian government announced on Saturday that the state-owned development bank VEB would invest over 1.1 trillion Russian roubles (about $13.40 billion) in order to develop a mine of copper in Chukotka, in the extreme east of the nation. A government press release stated that the development of Baimskaya, which was discovered in 1972, will create 6,000 jobs, and generate tax revenues in excess of three trillion roubles. Chukotka, the easternmost federal subject in Russia, is a mountainous area. Around half of the region is above the Arctic Circle. Once operational, the deposit will increase Russia's gold production by 4% and copper production by 25%. "We continue to build not just a mining and processing plant, but a powerful and technologically-advanced industrial complex that will strengthen Russia's position in the global market and become a new point of growth in the Arctic," said Georgy Fotin, general director of the Baimskaya Management Company LLC. Vladimir Putin named the Arctic region as one of Russia’s most important economic interests. He has also increased commerce through the Northern Sea Route, as Moscow has shifted trade away from Europe and towards Asia due to Western sanctions. The government announced on Saturday that the development of the Baimskaya deposit would increase the annual cargo traffic along NSR by two million metric tonnes. $1 = 82.1000 Russian Roubles (Reporting and editing by Kirby Donovan; Lucy Papachristou)
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At least 17 people killed in Nigeria by suspected herders
Police said that at least 17 people died when suspected cattle-herders attacked Benue State in central Nigeria on Thursday. This was amid an increase of violent clashes between farmers, herders and others. Food supplies in north-central Nigeria have been disrupted by years of conflict. This is a major agricultural area. Two days earlier, 11 people had been killed in Otukpo in Benue. A week before that, gunmen killed over 50 people when they attacked villages in Plateau State. According to SBM Intelligence, since 2019, more than 500 people have died in the region as a result of the clashes. 2.2 million others were forced to flee their homes. Police said that a separate group of suspected cattle herders killed five farmers early Friday morning in the Ukum Local Government Area of Benue, near Gbagir. Police spokesperson Sewuese Aene stated that the attackers fired as police moved in to confront them. Police said that while officers were engaged in the attack at Ukum another 12 people died in an attack 70 km away in Logo local council. (Reporting and writing by Camillus Eboh, Ben Ezeamalu and Andrew Heavens; editing by Andrew Heavens).
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Toronto FC wins rare road game at Real Salt Lake
Toronto FC hasn't beaten Real Salt Lake in Utah for nearly 18 years. Real Salt Lake is 10-0-2 against Toronto FC at home since their first ever meeting. They will look to add to that record when they meet in Sandy, Utah on Saturday. Toronto defeated Real Salt Lake 2-1 on July 4, 2007, in a match held on the University of Utah's campus in Salt Lake City. RSL has dominated home matches since then with an unbeaten streak, which includes a win in the 2010 CONCACAF Champions League. Toronto's first-year coach Robin Fraser stated, "It is a difficult place to play." They have played well there in the past. Toronto's results there haven’t been great over the years because it’s a difficult place. Toronto FC hasn't had a good season so far (0-4-4, four points). Toronto was 0-4-1 in its first five games before it played three consecutive draws. The club was held scoreless at Minnesota United last week. Deandre Kerr, a Toronto player, will miss his third consecutive game due to an injury to his ankle. Federico Bernardeschi and Deandre Kerr are tied with two goals each for the team's lead. Fraser believes Kerr will be out for at least another month. Real Salt Lake (3-5-0, 9 points), has lost three of its last four matches. The result last week was a painful one. Nashville's Sam Surridge scored in the first minute after the second half's stoppage time the decisive goal that sent visiting Salt Lake down 2-1. Diego Luna, who scored three of the team's best goals, sees a team in progress that is yet to find its full stride. "We're playing well," Luna said. The team is improving, we are growing, and the chemistry is developing, but there are still little things to fix to bring it all together. RSL coach Pablo Mastroeni said: "We made some good progress in the past couple of weeks and played good stuff in our last game." We want to dial in some moments where we were a little naive. Salt Lake's Javain Brown has retired from the league after having surgery on Wednesday to repair an ACL tear and meniscus damage to his left knee. Brown injured his knee during a training session. Field Level Media
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Indonesian woman uses mangroves to fight rising tides
Pasijah is a 55-year old housewife from Indonesia's Central Java Province. She wakes every morning with the sound of waves. It's not as idyllic as it sounds. It is the last remaining house in this area of Rejosari Senik. This small village, located on Java's north coast, was once dry land and is now under water. Pasijah and her family are not planning to leave. She said in February that she had "every intention" to remain at the house and her feelings towards it remained. Pasijah, who has lived in her house for 35 years, is soaked by water when she steps out. The floor inside has been raised above the water level by using a power pole and bamboo arranged in haphazardly. Demak is 19 km away. The closest land is 2 km (1.24 miles). Only by boat can you get to the island. Indonesia is an archipelago made up of thousands of islands with a coastline of 81,000 km. This makes it vulnerable to erosion and rising sea levels. Kadarsah, an official with Indonesia's Meteorology, Climatology, and Geophysical Agency, said that sea levels along the coasts of the country rose by 4.25 millimetres per year on average between 1992 and 2024. However, the rate increased in recent years. He said that rising sea levels were a sign of climate change, and added that small islands had vanished. Kadarsah pointed out that increased pumping has also exacerbated the land subsidence along Java’s northern coast. Jakarta, Indonesia's largest city, is especially affected by the problem. It is home to 10 million people. Indonesian authorities are turning to mega-projects for a solution. One of these is a 700-kilometre sea wall along the northern coastline between Banten province and East Java. Pasijah, her family and friends have also turned to the natural world. Over the last two decades, she has planted around 15,000 mangroves trees per year. She paddles in a boat that is made of a blue barrel every day to plant saplings and tend to bushes. Pasijah explained that the flood waters came in waves and not at once. "I realized that I had to plant mangroves after the water began rising. They would spread and protect my house from the wind and waves. Her family and she survive by selling fish that her sons have caught in the market closest to them. They said they would stay until the tide was held back. Pasijah explained, "I don't care about my feelings about being isolated here anymore since I've decided to stay. We'll just take one obstacle at a time." (Reporting and writing by Ajeng dinar Ulfiana; Budi Purwanto and Johan Purnomo. Additional reporting and writing by Stanley Widianto. Editing and editing by Gibran peshimam and Kate Mayberry.
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Sources say that KKR is among the asset managers competing for Abu Dhabi district cooling business.
Three sources confirmed that KKR, I Squared Capital and other global asset managers are bidding to buy a district cooling company owned by Abu Dhabi’s Multiply Group. The business is part of a $1.5 billion empire run by one of UAE's most powerful sheikhs. As an environmentally-friendly and more cost-effective alternative to air conditioning, district cooling plants deliver chilled water through insulated pipes in order to cool buildings such as offices, factories, and residences. Three people familiar with the situation, who declined to be identified because the details were not public, said that Investcorp is one of the possible suitors. According to the sources, CVC, which is backed by Engie, and National Central Cooling Co (also known as Tabreed) are in a race for a deal worth up to $1 billion. The Abu Dhabi energy and utility firm TAQA also has its eye on the deal. It is nearing its second round, with potential buyers expected next month to submit binding bids. Multiply Capital, I Squared Capital and Tabreed did not respond to requests for comment. Last month, it was reported that Tabreed worked with Citi to develop a possible bid. PCH's interest shows how local investment opportunities are being sought by buyout groups in the Gulf, as governments implement ambitious programs to diversify economies away from oil. Previously, equity firms raised money in the Gulf to invest elsewhere. Last week, KKR was the latest asset manager who announced plans to create a team to pursue Gulf deals in the region. Multiply is owned by IHC. Its chairman, Sheikh Tahnoon Bin Zayed Al Nahyan is the UAE's National Security Advisor and brother of its president. He controls an expansive business empire, including two sovereign funds. S&P Global Market Intelligence reported in January that private equity funds raised $680 billion worldwide in 2024. This is a decrease of 30% from the $966 billion raised by 2023.
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Trump will expedite the permitting process for 10 mining projects in the US
The White House announced on Friday that it would expedite the permitting process for 10 mining projects in the United States, as part of President Donald Trump’s efforts to increase critical minerals production. These projects, which will supply copper, antimony, and other minerals, have been given FAST-41 status. This is a federal initiative that was launched in 2015 for streamlined approvals of critical infrastructure. The White House announced that it would add more projects. The first 10 are listed publicly on a U.S. Federal website, where the progress of their permits can be tracked. This is part of a Trump administration push for greater transparency. The White House issued a statement saying that "this transparency leads to greater responsibility, ensuring an efficient process." This move will boost a number of projects, including a proposed Idaho gold and antimony mine by Perpetua Resources; a proposed Arizona mine from Rio Tinto; a proposed Montana silver and copper mine by Hecla Mining; an expansion of Albemarle’s Nevada lithium project, a direct lithium extraction project in Arkansas from Standard Lithium and a metallurgical coking coal project in Alabama from Warrior Met Coal. Steel is made from metallurgical coal. Former President Joe Biden has accelerated the Hermosa zinc and manganese project of South32 in Arizona, making it the first mine that received the FAST 41 treatment. Trump ordered earlier this week a probe of potential new tariffs for all U.S. imports of critical minerals, a major escalate in his dispute against global trading partners and an effort to pressure the industry leader China. (Reporting and editing by Lisa Shumaker; Ernest Scheyder)
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Sources confirm that Petrobras has approved the tender for restarting fertilizer plants in Brazil’s northeast.
According to four sources with knowledge of the matter, the board of Brazilian state oil company Petrobras approved plans on Thursday to select a new partner to restart its fertilizer factories in northeastern Brazil. Sources who asked to remain anonymous because the decision had not been made public said that the move hinged on the resolution of ongoing disputes with the current leaseholder, Unigel. The chemical company Unigel demanded compensation from Petrobras, according to previous reports. This impasse marked a setback in President Luiz-Inacio Lula's plan to reduce Brazil's dependence on imported fertilizer. Brazil, a major agricultural powerhouse in the world, is one of the top importers of fertilizers. It purchases more than 80%. Petrobras has leased to Unigel the two nitrogen fertiliser plants located in Bahia State and Sergipe State in 2019. The agreement is for 10 years. Both facilities were shut down in 2023. Unigel cited unfeasible conditions of operation due to the high price of natural gas in Brazil. Sources claim that Unigel has not yet responded to Petrobras after the board's decision. Petrobras refused to comment upon being contacted by. Unigel didn't immediately respond to our request for comment. Both companies are involved in arbitration related to their lease agreement, which includes disagreements about the shutdown of the operations, Unigel’s investments and gas supply terms. Sources said that a formal tender could only be advanced if an agreement was reached. The arbitration must be completed before the process can proceed. We can't go forward without it," a company source stressed. Second source: If the dispute is fully resolved, Unigel could participate in the next bidding process for the plant to resume operation. (Reporting and writing by Rodrigo Viga Gaier in Rio de Janeiro, Marcela Ayres in London; Editing by Matthew Lewis).
China's exports and imports in March are lower than expected, with a big difference.
China's imports and exports both shrank unexpectedly in March, far below forecasts. This highlights the difficult task that policymakers face as they attempt to boost a fragile economic recovery.
The gloomy data marked a reversal for the second largest economy in the world after an overall better than expected start to the new year. China has been unable to sustain a post-COVID rebound, hampered by a prolonged property crisis, rising local government debts, and weak private sector spending.
Customs data released on Friday showed that exports from China fell 7.5% in value year-on year last month. This is the largest drop since August of last year, and compared to a 2.3% decrease predicted economists. In the period January-February, they had increased by 7.1%.
Hong Kong's main indexes suffered losses of more than 2%. The data was released just after the mainland Chinese stock exchanges had closed.
Capital Economics analysts said that despite a greater-than-expected fall in export value, export volumes reached record highs. This suggests Chinese exporters continue to cut prices to maintain sales despite a stubbornly low domestic demand.
Some economists said that a higher comparison base last year was also a factor in the drop of exports. They noted that production had increased last March, as workers recovered from COVID-19.
Both exports and imported goods rose by 1.5% in the first quarter of this year.
The Chinese exporters suffered a lot last year due to the high interest rates that weighed down on demand overseas. The Federal Reserve and other developed countries are not in a hurry to reduce borrowing costs. Manufacturers may be further strained as they try to boost sales abroad.
Kris Lin, the owner of a lighting product factory, has spent tens and thousands of yuan renting a booth for China's largest trade fair, next week. But he does not have high expectations.
Lin stated that "fewer and fewer buyers have come to our country in the last few years to inspect our products."
Analysts warn that Western concerns about China's overcapacity may lead to more trade barriers being placed on the manufacturing hub of the world.
Overcapacity Critique
Chinese automakers export 1.32 million cars in the first quarter. This is up 23.9% compared to a year ago.
Customs did not give a breakdown on how many of these were
Electric Vehicles
Exports of solar panels from China and other clean energy products are also fueling the growth.
Increased friction
With the U.S.A. and Europe
China has stated that its production system simply is more competitive. China's industrial capacity is less than that of much of the West but still lower.
Steel shipments increased by 30.7% during the first quarter, despite a decline in overall exports.
Next Tuesday, the first quarter GDP will be released.
Tianchen Zhu, economist at Economist Intelligence Unit, says that the impact of the fall in exports is not likely to be significant, as real GDP growth is closely related to export volume rather than value.
"However, data suggests falling export prices which will be a drag to nominal GDP," added he.
China's
Economy is possible
The growth rate was 4.6%
A poll released on Thursday showed that the economy grew at the slowest pace in a full year in the first three months of the year. This is keeping pressure on policymakers for them to announce more stimulus measures.
Wang Lingjun, vice-head of the customs administration, responded to a question about overcapacity during a Friday press conference. "We do not think that falling producer prices indicate the so-called excess capacity, since the price drops are due to fluctuations in raw material prices, technological upgrades, and the voluntary surrender of profit by producers."
MIXED SIGNALS
Imports also disappointed in March, with a decline of 1.9% on an annual basis, after a 3.5% increase in the previous two months. This was below the expected rise of 1.4%.
The low figure underscored the sluggish demand at home, as was highlighted by data released on Thursday, showing that consumer inflation dropped more than expected in January, but factory-gate deflation continued.
China's economy has had a solid start to the year, after policymakers implemented support measures to boost household consumption, investment in private companies and market confidence.
Analysts do not expect to see a full-blown recovery in Asia anytime soon, primarily due to the protracted crisis that has gripped the property sector, and which could last for years, according to some analysts.
Analysts note that it will take some time to change the direction of China's traditional growth engines, property and trade.
The rating agency Fitch lowered its outlook for China's sovereign debt rating on Wednesday. It cited risks to the public finances due to a slowdown in growth and an increase in government debt.
Analysts have called China's 5% growth goal for the full year ambitious, noting that COVID 2022 was responsible for last year's 5,2% expansion.
China will issue ultra-long-term treasury bond specials worth 1 trillion yuan (138.18 billion dollars) to fund key areas. The quota of special bonds issued by local governments in 2024 was also increased.
Last month, in a second attempt to boost demand, the cabinet approved a plan that aims to promote large-scale equipment upgrade and sales of consumer products. The country's chief economist estimated that the plan would generate a market demand of more than 5 trillion yuan per year.
(source: Reuters)