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Mining chamber expects a lithium boom in Argentina this year
The mining chamber CAEM announced on Wednesday that lithium production in Argentina will increase by 77% this coming year. This is equivalent to 131.800 metric tonnes of lithium carbonate (LCE). CAEM stated that silver production could drop between 9.3% to 14.3%. Gold output is expected to fall between 0.6% and 93%. CAEM CEO Alejandra Cardona said that Argentina's lithium production has increased from three to six projects, thanks to new projects by Gangfeng Eramine, and Posco. Exports will drop 24% in 2024 to $631mn, due to lower international prices, according the chamber. Cardona informed attendees at a presentation to announce the Arminera event, an important mining industry conference, which will take place later in May, that there is a continued interest from Saudi Arabia. She added that for the time being, due to the drop in reference price, there have been no concrete investments. The third-largest economy in Latin America is also the fourth largest exporter of "white metal" and forms part of the "lithium triangular", which includes Chile and Bolivia. In 2025, gold production is expected to drop between 0.6% to 9.3% to 1.14 to 1.27 million ounces. CAEM reported that silver production could fall between 9.3% and 14.3% as mine lifespans decrease despite 2024's record gold exports. Javier Milei, the libertarian president of Argentina, has taken measures to deregulate and attract investment in order to overcome an economic crisis that lasted for years. In order to do this, he has promoted fiscal incentives and lifted the currency controls. Cardona believes that the removal of currency controls will improve the climate, provide certainty and not affect investments in projects which require many years before production can begin. Reporting by Lucila SIGAL; Writing by Rafael Escalera Montoto, Editing by Natalia Sinawski & Brendan O'Boyle
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US Judge to Rule by May 14th on Rio Tinto Copper Project Opposed by Native Americans
A U.S. Federal Judge said that he would rule on May 14 whether or not to stop the Trump Administration from transferring Arizona Land to Rio Tinto and BHP for the construction of a major Copper Mine, which Native Americans are opposed to. The complex and long-running legal case pits Arizona's San Carlos Apache against the rising demand for copper to support the energy transition, and the geopolitics surrounding China's control of the vital minerals industry. The conflict centers around the federally-owned Oak Flat Campground, where many Apaches worship their deities. The site is located on top of a copper reserve that contains more than 40 billion pounds (18,1 million metric tonnes), a vital component in electric vehicles and electronic devices. If built, Rio and BHP’s Resolution Copper Project would cause a crater that was 2 miles wide (3 km) and 1,000 feet deep (304 m), slowly engulfing the worship site. U.S. District Court Judge Steven Logan who ruled for the land transfer 2021 held a hearing of nearly two hours on Wednesday. He was asked to block the land transfers temporarily until the U.S. Supreme Court has decided. Logan, a former U.S. president Barack Obama appointee, made no indication of how he will rule within the promised week, but asked pointedly about the harm that the Apache might suffer if the transfer occurred before the Supreme Court decides. He also requested data on Rio's monthly maintenance costs of existing Resolution assets. A Rio executive estimated that these costs were $11 million. Since 2021, the courts have refused to grant Apache Stronghold's request that the land needed for the mine be transferred. The court's rulings were based on a decision taken by the U.S. Congress in 2014 and President Obama. In his first term as president, Donald Trump began the land transfer. However, Joe Biden undid the move while the matter was pending in the courts. Now, the U.S. Supreme Court will decide whether or not to accept the case. The Supreme Court has stated at least thirteen times that it will continue deliberating on the appeal request. This is an unusually lengthy timeframe. Trump restarted last month the land transfer, and his administration hopes to finish it by June 16. Logan was urged to stick with the 2021 decision by the U.S. Justice Department. The Justice Department has been against Apaches' requests under both Biden & Trump. Erika Danielle-Norman, an attorney with the Justice Department, said that there was no basis to give a different outcome. The hearing was a positive experience for Apache Stronghold, their attorneys from the Becket Fund for Religious Liberty and the Apache Stronghold. Joseph Davis, Becket's Joseph Davis said that the Apaches only asked for the Supreme Court to delay the land transfer while it deliberates. Rio Tinto expressed its appreciation for the time of the court and said that Resolution was "vital" to America's future energy, infrastructure, and national security. BHP, who owns 45% to Rio's 50%, has not responded to an immediate request for comment. (Reporting and editing by Howard Goller; Ernest Scheyder)
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Exxon has agreed to supply low-carbon ammonia to Japan's Marubeni
Exxon Mobil announced on Wednesday that it had signed a long term agreement with Marubeni, a Japanese trading company, to supply the Japanese trading house 250,000 metric tonnes of low-carbon hydrogen annually. This is Exxon Mobil's first customer agreement signed for its planned facility in Baytown. Exxon has been working to build the largest low-carbon hydrogen facility in the world at its Baytown refinery and chemical complex. The project, which is experiencing delays, will now move forward. The clean fuel hydrogen can be made from natural gas. It produces water upon combustion. Ammonia is used to transport the liquid hydrogen. The company stated that carbon dioxide produced during the production of hydrogen would be captured and stored below ground. In a press release, Barry Engle said, "This is a positive step for our landmark project." Exxon's final investment decision on the Baytown hydrogen plant will determine whether or not Exxon signs a customer agreement. Exxon expects to reach a decision in this year depending on government policies and regulatory permits. Marubeni also plans to take a stake in Exxon Baytown's hydrogen facility. A spokesperson for Exxon declined to disclose the percentage stake.
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British Steel under UK government control to increase output and hire staff
British Steel announced on Wednesday that it will hire more than 180 new employees as it prepares for a production increase following the British Government's operation seizure of British Steel from its Chinese owners back in April. British Steel operates two of the last remaining blast furnaces for England in Scunthorpe. The two blast furnaces in Scunthorpe, eastern England are operating at a loss. Owners China's Jingye Group announced plans to close them down back in March. British Steel announced on Wednesday that it will "significantly" increase its iron and steel production over the next few months, following the government intervention in April. It is therefore recruiting for over 180 new positions in engineering, manufacturing, and business functions. The Jingye closure plans put the jobs of 3,000 employees at risk. British Steel's interim Chief Executive Allan Bell stated that the company hoped to become one the world's largest steel manufacturers with the government's backing. In a press release, he stated that "to help achieve this and meet customer demands, we will increase production." This demand is unlikely from the United States, after President Donald Trump imposed in March a 25% tariff on steel imports. Jingye warned that British Steel was already losing 700,00 pounds ($922,000 per day) British Steel is a supplier of rail, construction and automotive industries. However, it has been struggling with high energy prices in the UK, as well as a global glut of steel. The government previously stated that it was looking for a partner in the private sector to ensure British Steel's long-term future. The United States and Britain are trying to reach a deal on trade that will hopefully reduce Trump's tariffs, which include British Steel.
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Occidental reports quarterly profit beat on strong output, natural gas prices
Occidental Petroleum beat Wall Street expectations for the first-quarter profits on Wednesday thanks to strong production and favorable commodities prices. Benchmark Brent crude averaged $74.98 per barrel in the first quarter of 2018, up 1.3% from the previous quarter. Meanwhile, U.S. Natural Gas prices have been steadily rising over the last few quarters, and reached a 2-year high on 10 March. The average domestic realized price of total natural gas production has risen to $2.42 for every thousand cubic feet. This is a 50% increase from last year. Natural gas liquids (NGLs) realized by the company were $25.94 a barrel, a roughly 17% increase from last year. The average realized price of oil has fallen from last year but increased by 2% from the previous quarter. The company's production increased by nearly 19%, to 1,39 million barrels of equivalent oil per day (MMboepd), compared with the previous year. This was largely due to higher output from the Rockies as well as the Gulf of America. In the third quarter, the company reported that it had paid off $2.3 billion in debt. This was a result of divestitures. After closing its acquisition of CrownRock, the company's debt ballooned. In a press release, CEO Vicki Hollub stated that "we continue to make rapid progress towards our debt-reduction goals and believe that our deep, varied portfolio of high quality assets positions us for successful performance in any market conditions." According to LSEG, the company reported a profit adjusted of 87 cents a piece for the quarter ending March 31. This compares with an average analyst estimate of 77c / share.
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APA sells New Mexico assets at $608 million following quarterly profit success
APA Corp announced on Wednesday it would sell New Mexico Permian assets to focus on its core business. This was in an effort for the company to streamline its operations and concentrate on areas of strength. It also beat Wall Street's expectations for first-quarter profits. These assets, which generate about 12,400 barrels equivalent of oil per day (boepd), are less than 5% APA's overall Permian production. The company stated that the deal with Permian Resource is expected to close by the end of the second quarter and proceeds will be used to reduce the debt. This move comes after APA acquired rival Callon Petroleum in West Texas and New Mexico last year. APA reported that its quarterly production was 468,978 bpd, compared with 389,157 bpd last year. The increase in production allowed the oil and gas company to counteract a sharp decline in crude price. Crude oil fell in price during the first quarter as investors prepared for an increase in production from OPEC+. They also expressed concern over President Donald Trump’s tariffs, which could slow down global economic growth. APA's average price per barrel was $73.73 in the quarter January-March, down from $80.65 in the same period of last year. The company has also reduced its number of rigs to six due to the current market conditions. In February, APA stated that Planned Eight rigs will be used in the Permian, and 12 in Egypt. APA has also reduced its budget for 2025 capital development by $150 million. The company said that it also expects to save $130 million by 2025, which is more than twice its previous estimate. According to LSEG, the Houston-based company reported an adjusted profit of $1.06 per common share for three months ending March 31. This was higher than analysts' average estimates of 83c per share. (Reporting by Arunima Kumar in Bengaluru; Editing by Mohammed Safi Shamsi)
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KoBold Metals and Congo Lithium Deposits Agree on Framework for Purchase
KoBold Metals, a metals exploration firm based in California, announced on Wednesday it had reached an agreement with AVZ Minerals to purchase their interests in the Manono Lithium Deposit in the Democratic Republic of Congo. KoBold will be able to invest over $1 billion in order to bring Manono lithium to Western markets. The United States produces a limited amount of lithium, which is used to produce batteries for electric cars and other consumer electronics. This has led to an increased reliance on China. Both President Donald Trump and Joe Biden's predecessor have taken steps to reduce this dependence. Massad Boulos said last month that the United States was in discussions to invest billions in the mineral rich Congo. Cobalt, uranium, lithium and other minerals are abundant in the country. The Silicon Valley start up and AVZ minerals both said they were working with all parties involved in the deal. This included the United States government and the DRC. (Reporting from Bengaluru by Pooja menon, with additional reporting by Vallari srivastava; editing by Mohammed Safi Shamsi).
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After the Fed maintains rates at their current level, world stocks are choppy and lose ground.
In choppy trading, the dollar and U.S. Treasury yields both gained and lost some ground on Wednesday. The Federal Reserve had left its interest rates unchanged but warned of increased inflation and labor market risk. In line with expectations, the U.S. Central Bank held rates at their current level. The central bank said that the economy was continuing to grow at a steady pace, but also noted the rising risks of inflation and unemployment due to the impact of President Donald Trump's new tariff policies. Julia Hermann is a global market strategist at New York Life Investments. She said that the Fed has few options in the short term to deal with higher unemployment and inflation. The ability of the central banks to cut rates preemptively to boost economic growth, is limited by inflation risks. On the other hand, they are constrained in their ability to increase rates preemptively to reduce inflation risks by growth risk. "It's a stagflation dilemma," she said. We expect the Fed to ease up only if the economic growth numbers are really disappointing. The U.S. Treasury secretary Scott Bessent, and the chief trade negotiator Jamieson Grieer will meet China's highest economic official at the weekend for discussions. This could be the beginning of an agreement after Trump started a trade conflict with the No. 2 economy in the world. 2 economy last month. Bessent believes the meeting in Switzerland will be about "de-escalation," whereas China is more cautious and has cited an old proverb that says actions speak louder than words. At 02:50 pm on Wall Street the Dow Jones Industrial Average rose by 154.17 or 0.38 percent to 40,983.17. The S&P 500 dropped 8.93 or 0.16% to 5,597.98. And the Nasdaq Composite declined 109.97 or 0.62% to 17,579.69. The MSCI index of global stocks fell by 1.47 points or 0.17% to 840.44. The pan-European STOXX 600 closed earlier down by 0.54%. After the Fed's statement, and while central bank chairman Jerome Powell answered questions from journalists, the currency market was volatile. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.13%, reaching 99.64. The euro fell 0.33% to $1.1331. The dollar gained 0.77% against the Japanese yen to reach 143.5. The yield on the benchmark 10-year U.S. Treasury notes dropped 3.3 basis points, to 4.285% from 4.318%, late Tuesday. The 30-year bond rate fell 3.2 basis to 4.7809%. The yield on the 2-year bond, which is typically in line with Fed expectations for interest rates, increased 0.6 basis points from late Tuesday to 3,795%. Investors priced in an increase in gasoline stocks in the U.S., and looked forward to the U.S./China trade negotiations. Brent crude settled at $61.12 a barrel, down by 1.66% or $1.03 on the day. U.S. crude settled at $58.07 per barrel, down $1.02 or 1.73%. Spot gold dropped 1.36%, to $3382.59 per ounce. U.S. Gold Futures dropped 0.73% to an ounce of $3,386.60.
Gold falls on optimism about US-China trade negotiations; Fed decision eyed
Gold prices dropped more than 1% Wednesday, as the hopes of trade talks between China and the United States weighed on this safe-haven precious metal before the Federal Reserve's rate decision that day.
As of 0816 GMT the spot gold price was down by 1.2%, to $3,386.23 per ounce, following a steep rise in the previous session.
U.S. Gold Futures fell 0.8% to $3394.90. Zain Vawda is an analyst at MarketPulse, who said that reports of a possible meeting between U.S. officials and Chinese officials in this week could boost sentiment if confirmed.
This weekend, U.S. Treasury secretary Scott Bessent, and chief trade negotiator Jamieson Grieer will meet with top Chinese official He Lifeng in Switzerland to discuss tariffs.
Last month, both the U.S. imposed tit for tat tariffs on China, sparking a trade conflict that inflamed global recessionary concerns, causing investors to seek refuge in safe haven assets like gold.
The focus of the market now shifts towards the Fed's policy announcement at 18:00 GMT. Investors will be looking for signs of future rate cuts. The central bank has been widely expected to maintain rates at their current level.
According to CME FedWatch Tool, the markets now indicate only a 30% probability of a Fed rate reduction in June.
In an environment of low interest rates, gold, which is traditionally seen as a hedge to economic and political uncertainty, thrives.
India launched a geopolitical attack on Pakistan and Pakistani Kashmir, and Pakistan claimed to have shot down five Indian fighter planes. This was the most intense fighting between two nuclear-armed adversaries in over two decades.
Vawda stated that if the friction between India, Pakistan and other countries escalates to a more serious conflict then gold will likely attract an increased demand for safe havens, which would support prices even further.
Other than that, silver fell 0.8% at $32.96 per ounce. Platinum declined 0.2% to $983.06, and palladium remained steady at $974.43.
(source: Reuters)