Latest News
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Codelco and Anglo American will jointly operate copper mines at central Chile
The companies announced that they had signed a Memorandum of Understanding to operate copper mines located in central Chile. Codelco's board of directors, in a letter sent to the local regulators, approved the deal for the operation of its Andina Mine alongside Anglo American’s flagship Los Bronces Mine outside of Santiago. In a Santiago press conference, Codelco chairman Maximo Pacheco said: "This memorandum will allow us jointly to develop a mine plan for both joint deposit that are next to each other." He said that the agreement would allow the production to increase by 120,000 tons per year over a period of 21 years, without the need for any additional investment. Andina will produce 164,500 tons of copper by 2023. Los Bronces is Anglo American's key mine, producing 215,000 tons of copper in 2023. Codelco holds a 20% stake of Anglo American Sur (the local Anglo American division that includes Los Bronces). Anglo American confirmed that the production increase would begin in 2030. Pacheco said that the agreement would force the company review its development plan for the Andina mine. The Center for Copper and Mining Studies' (CESCO) analyst Cristian Cifuentes said that the details are still being finalized. Cifuentes stated that Andina does not have the processing capacity to process the entire amount of mineral it extracts, and there is no short-term or medium-term solution. Los Bronces, on the other hand, has almost double the processing capability of Andina. Codelco stated that the company hopes to finalize the details of the agreement in the second half this year. Both projects have been delayed by the need for environmental permits. Environmental groups have opposed the Andes expansion due to the potential impact it could have on the glaciers and the water supply in a drought-stricken Chile.
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Britain and France explore electrical interconnection of approximately 1 GW
Ofgem, the British energy regulator, and CRE, its French counterpart, have agreed to explore opportunities for electricity interconnection with capacity of approximately 1 gigawatt between France and Britain, Ofgem announced on Thursday. In recent years, several other projects have been proposed. The two countries share electricity links totaling 4 GW. Ofgem announced that it has approved two more projects, FAB Link GridLink and FAB Link, between France. CRE conducted a study that found, while the capacity of 1 GW could be beneficial to France, it depends on how revenues and costs are distributed. They said that the two regulators had agreed to continue discussions on the higher costs of key components, bottlenecks within the national grids, and the cost and revenue-sharing between the two countries. The two added that they plan to release an updated statement on regulatory position by the end October 2025.
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CenterPoint increases its spending plan due to a surge in power demand for data centers
CenterPoint Energy, a U.S. utility company, added $500 million on Thursday to its 10-year plan of capital expenditures to improve its electricity grid in order to meet the surge in demand for energy from new data centres. According to a report by the Lawrence Berkeley National Laboratory, the power demand of U.S. data centres is expected to triple over the next three to four years. This could consume up to 12% the total amount of electricity produced. CenterPoint anticipates that demand in Houston will increase by nearly 50% between 2031 and 2030. On Thursday, it increased its capital budget through 2030 from $47.5 billion to $47.5 Billion to improve grid reliability. CenterPoint's CFO Christopher Foster stated in a recent conference call that "we, like our peers, have seen an unprecedented interest in connecting to the grid. We have received around 40 gigawatts of load interconnection requests." Dominion Energy Duke Energy DTE Energy have also increased their capital spending plans in the past month to meet the increasing power demand of data centers. Utilities ranked among the top winners of the S&P 500 in 2008, thanks to the expectation that data centers would increase their demand. The S&P Index tracking utilities is expected to rise 19.6% by 2024. CenterPoint also confirmed its profit forecast for 2025 between $1.74 to $1.76 per common share, after matching Wall Street's expectations of a fourth-quarter adjusted earning per share of 40 cents. The company's net quarterly income increased to $248 millions, or 38 cents a share, up from $192million, or 30cents a share, one year ago. (Reporting and editing by Leroy Leo in Bengaluru, Sriraj Kalluvila).
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After Trump tariffs, Brazil's Gerdau steelmaker rethinks its Mexico mill
The CEO of Brazilian steelmaker Gerdau said that the company may decide to increase its production capacity in the United States rather than build a new facility in Mexico. This is because tariffs imposed by President Donald Trump are affecting global trade. Gerdau announced in 2013 that it was looking at installing a special steel mill for Mexico. The new mill would have a capacity of 600,000 tons per year and require an investment between $500 million and $600 million. Gerdau originally expected to make a final decision on investment by the end 2024, and start construction this year. However, it has postponed that decision to July. "We are reviewing our analyses in light what is happening", Chief Executive Gustavo Werneck said on an earnings call. "Special Steel is an important segment for us here in the Americas." Werneck, citing the Michigan and Arkansas units of the company, said: "We're looking at the option of building the mill two-stages or increasing the production capacity in the United States." The U.S. president Trump raised the tariffs on imports of steel and aluminum to a flat rate of 25%, "without any exceptions or exclusions". He also threatened to raise tariffs against other major trading partners like Mexico and Canada. Gerdau will benefit from tariffs as it has production units in the U.S. and previously promoted its large footprint as a hedge to protectionism by Trump. Werneck said that the tariffs would lead to an improved production mix and increased profitability in the U.S. The company is currently operating 70% of its capacity in the U.S. or approximately 4 million tons each year. Gerdau, Brazil’s largest steelmaker based on market capitalization, reported a 9% drop in its adjusted fourth-quarter net profit compared to a year ago, falling below the market's expectations. The company, which has mills in the Americas, announced that it will segment its earnings by region starting with the first quarter of the year 2025 - Brazil. North America, and South America. Analysts at Scotiabank stated that Gerdau North America would be the clear winner, at least for the short-term, following President Trump's announcement of steel tariffs. However they noted the Brazilian unit may be negatively affected. Gerdau shares traded in Sao Paulo rose by 0.7% Thursday, following the Bovespa index. (Reporting and writing by Alberto Alerigi Jr., Editing by Elaine Hardcastle).
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Somalia claims its army and allied militias repel al Shabaab attack, killing more than 130
Somalia announced on Thursday that its army and clan militias allied with it had fought off coordinated raids by the Islamist al Shabaab group in the south of the country, killing over 130 attackers. Since 2007, the militant group linked to al Qaeda has waged a bloody campaign in central and southern Somalia, killing thousands in a campaign marked by deadly bombings of Mogadishu's capital. Al Shabaab, armed with explosive-laden vehicles, attacked four villages of the Middle Shabelle area on Thursday morning. They briefly captured two before they were defeated in heavy combat, according to two residents from the region and a spokesperson for defence ministry. In a press release, the Information Ministry said that "the heroes of the National Army and the locals killed more than 130 al Shabaab (fighters) in the operations to defeat the enemy." "They attacked these areas in many directions using mortars, car-bombs, and gunfire," said the local elder Nur Ibrahim, who lives in Ali Ahmed. He added that he had seen the bodies of about 20 attackers as well as seven clan fighters and soldiers. Al Shabaab attacks state and military targets frequently as part of its mission to overthrow Somalia's Government and establish its rule based on a strict interpretation of Islamic Law. Reporting by Feisal omar and Abdi sheikh; Writing by Hereward holland; Editing by Angus MacSwan
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Swiss court convicts ex-Gunvor employee of corruption
On Thursday, a top Swiss court found that a former Gunvor employee had corrupted officials in the Republic of Congo for oil contracts. This is the first time that a corruption case in Switzerland's commodities trading industry, worth $80 billion, has been brought to court. This follows the conviction of Trafigura, a rival trading firm, and a former executive in a corruption case involving Angolan Oil Deals last month. The Swiss Federal Criminal Court released a statement on Thursday that the ruling concerned bribes worth over $35 million, intended at least in part for Congolese officials, over an 18-month period between 2010 and 2011. The statement stated that the court sentenced the defendant, who was a French citizen and worked as a financial manager, to 24 months of prison with a suspension, along with a compensation fee of $950,000. Gunvor has declined to comment. Swiss law prohibits naming the defendant who no longer works at Gunvor. His lawyer told him that he categorically denied the charges. Emma Farge, Robert Harvey and Ludwig Burger contributed to the reporting.
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Enefit Green, Sumitomo Partner Up to Develop Offshore Wind Farm in Estonia
Enefit Green and Sumitomo Corporation have signed an agreement which outlines the start of strategic partnership for developing the first offshore wind farm in the Gulf of Riga in the Baltic Sea.Under the agreement, Enefit Green will sell 50% stake of Liivi Offshore OÜ a project company set up to develop Liivi Bay offshore wind project, to Sumimoto.The agreement is conditional to the approval from the Estonian Consumer Protection and Technical Regulatory Authority is a precondition for closing of the transaction.The start of this strategic partnership demonstrates a clear commitment to building the first offshore wind farm in the Gulf of Riga in the Baltic Sea, marking a significant step in advancing offshore wind energy development in the Baltic countries.The project expects to participate in the upcoming auction to be held by the Estonian government, which will be the backbone for the project to invite international lenders and suppliers, with expected completion of the construction of the wind farm in 2032.The Liivi Bay offshore wind farm is planned to consist of up to 84 turbines with a maximum total capacity of 1000 MW, with an annual electricity production of up to four terawatt-hours.“Estonia is one of the attractive emerging offshore wind markets, and the Liivi Bay offshore wind farm, developed by Enefit Green, is one of the most attractive projects in the market.“Sumimoto is delighted to enter a partnership with Enefit Green and contribute to Estonia’s green transition through the development of the Liivi Bay offshore wind farm, by making the most of our experience gained through active participation in multiple offshore wind projects in Europe and Asia,” said Hiroyuki FUJIOKA, Head of Overseas Energy Solution Unit No.2.
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DOF’s Skandi Implementer Vessel Returns to GoM for Two Subsea Projects
Norwegian offshore supply vessel operator DOF Group has secured contracts for two subsea construction projects which will be executed with its Skandi Implementer subsea vessel.Skandi Implementer, which recently departed Mexico following contract termination after payment default from a client, has been scheduled for work with two international oil companies, whose name has not been disclosed.Designed for subsea construction, IRM & ROV services up to 3000 m depth, the vessel was built in 2008. Featuring Marin Teknikk 6027 design, the vessel can accommodate 129 people.According to DOF, Skandi Implementer will complete the integration of survey services and two of DOF’s ROVs in late February before starting the project mobilization.“We are pleased to be able to quickly secure work for Skandi Implementer following the recent contract termination.“Beyond contributing with asset utilization and backlog, these contract awards represent advancing another of our I-class vessels into our subsea project business in line with our plan to add subsea service scopes to our most recent additions to the fleet through the DOF Denmark transaction,” said Mons Aase, CEO DOF Group.
Gold gains continue as Trump tariffs drive safe-haven flows
Gold prices rose on Tuesday for the second consecutive session, but they traded below their all-time high as concerns about economic growth and flows to safe havens such as bullion were fueled by uncertainty over President Donald Trump's proposed tariff plans.
As of 1240 GMT, spot gold rose 0.6% to 2,914.98 per ounce. Last week, it reached a record-high of $2.942.70.
U.S. Gold Futures rose 1% to $2.928,80.
Nikos Tzabouras is a senior financial writer for trading platform Tradu. He said that Trump's disruptive mode of operation, aggressive rhetoric, and tariffs (whether actual or threatened) could disrupt global trade and complex supply chains.
Gold is set to benefit from central bank purchases and risk-off flows in the Trump 2.0 era.
Since taking office, Trump has quickly redrawn global trade battle lines with a series tariffs. Plans are in motion to impose sweeping tariffs on any country that taxes U.S. goods.
Gold continues to be supported by the uncertainty around the tariff policy of the U.S. The central bank purchases should continue, even if no new data is available on this.
The focus of the market has shifted now to the minutes of the U.S. Federal Reserve meeting that are due on Wednesday. These minutes will provide clues about the interest rate trajectory for the central bank.
Price gains are also supported because traders expect the Fed to cut rates by 2025. This sentiment gained traction after last week's disappointing U.S. Retail Sales figures, said Ricardo Evangelista. Senior analyst at brokerage firm ActivTrades.
Bullion is a good investment because of the geopolitical and financial uncertainties as well as price pressures. However, higher interest rates reduce its appeal.
Silver
The price of gold fell by 1%, to $32.46 per ounce. Palladium rose 1.3% and platinum jumped 0.9%, to $984.10. Platinum was up by $0.9 to $984.10
(source: Reuters)