Latest News
-
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)
-
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.
-
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.
-
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.
-
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)
-
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).
-
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.
-
EIA: Oil wells in the Lower 48 US States have more than doubled in the past decade.
The U.S. Energy Information Administration announced on Wednesday that they estimate that the average number oil wells completed within 50 feet from each other simultaneously in the Lower 48 States has more than doubled since the last decade. The agency stated that the number of wells completed simultaneously per location has increased from 1 1/2 wells per location in December 2014 to over three wells per location in June 2024. This will allow operators to "accelerate production timelines and reduce costs per well." The EIA defines wells that are drilled within a 50-foot radius of each other as being at the same location. This increase was attributed to "significant technological advancements in hydraulic fracking operations and equipment capabilities." EIA analysis shows that the number of simultaneous well completions has increased since 2017. The EIA stated that although operators had recognized the benefits of finishing multiple wells simultaneously prior to 2017, they initially encountered technical obstacles. The EIA said that these included the requirement for more horsepower to fracture multiple wells at the same time. The EIA stated that "adoption of electric fleets which provides better power management has played a vital role in increasing the simultaneous completions". Electric fracking uses electric powered equipment instead of traditional diesel-powered fracking tools. Fuel delivery trucks are required for traditional well-drilling activities that rely exclusively on diesel pumps. The EIA stated that the switch to electric frac vehicles helped streamline operations because they used locally available fuels, such as compressed natural gas or field gas, and electricity from the grid. (Reporting by Ishaan Arora in Bengaluru; Editing by David Gregorio)
He Lifeng, China's trade tsar, is at the forefront of US tariff discussions
He Lifeng, a trusted confidant of Chinese president Xi Jinping, who has gradually built a reputation as a fixer among foreign investors, will be at the forefront in Saturday's talks aimed at resolving a deadlock on trade with the United States.
After weeks of escalating trade tensions, the vice premier of Canada will meet with U.S. Treasury Sec. Scott Bessent in Switzerland and Jamieson Greer as chief trade negotiator.
He is the person who oversees U.S. China economic and trade relations.
We interviewed 13 foreign diplomats and investors who met He in the last year. The interviewees described He's transformation from a Communist Party apparatchik who spoke no English and was reluctant to deviate from his prepared remarks to a confident man with a greater ability to accomplish things.
According to an American businessperson who was briefed about the meetings, He impressed many of the leaders of some the world's biggest companies when they flocked to Beijing last month for a forum.
The majority of people who spoke to He on the condition of anonymity did so in order to discuss their confidential interactions with him, He also has a vast regulatory oversight of China's sprawling finance sector.
According to the'review of his public engagements, the vice premier held at least sixty meetings with foreigners over the last year. This is a steady rise from the 45 meetings he had between March 2023 when he became vice premier and March 2024.
The Chinese State Council has not responded to a request by fax for comments on the talks.
DÉFENDER STATUS QUO?
Many of the interviewees said that despite the vice-premier's increased comfort in engaging with Western executives he was not an innovator.
According to a businessperson who was briefed on last month's meeting, the vice premier's improved reputation among American executives is likely due to the fact that Chinese leaders seemed especially confident and predictable in the aftermath of the chaos in the U.S.
In meetings with foreigners, he has repeatedly defended Beijing’s export-led strategy of growth.
One American businessperson said that He, a supporter of boosting domestic consumption over manufacturing, is Xi's chief lieutenant in building a trillion dollar surplus.
Three people said that he had, at times, repeatedly dismissed complaints about Chinese overcapacity. These are also shared by other countries Beijing is courting to find new ways of cooperation and export pressure valves.
Wen-Ti Sung is a senior fellow with the Global China Hub of the Atlantic Council. She said that He would defend China's surplus on a daily basis. It's difficult to imagine He compromising on the trade deficit, a key issue for China's job-creation.
The vice premier was at the forefront of China's recent outreach efforts to developed markets such as Japan and the European Union that were also affected by Trump's tariffs.
He will then travel to France, where he will hold a high level economic dialogue.
UNDERWHELMING START
Liu He was the former head of the economics portfolio before He assumed his current position. A Harvard-educated English-speaking economist, Liu He negotiated a free trade agreement with the United States under the first Trump administration.
The vice premier may have a Ph.D. in economics from Xiamen University but his domestic focus meant he had to learn a lot in order to be China's economic face in the world.
According to a person who was present, some American executives were not impressed by He when he briefed on the results of an important economic policy meeting in July last year.
A person claimed that the vice-premier, who according to party conventions, should retire in 2027 looked a little sluggish at the briefing where he had dozens of aides flanking him.
He's predecessors, such as Liu and Wang Qishan were known to foreign interlocutors because of their eloquence, and a relatively informal demeanor.
After a Japanese delegation raised concerns in February about Beijing's controls on rare earth exports and the safety for Japanese nationals living in China, the vice premier downplayed these issues.
Businesspersons briefed about He's meetings in March described previous discussions with the vice-premier as "talking to ChatGPT." He said that the Chinese official has started communicating in a more Western-friendly way.
This person, who met He several times, was impressed by He's ability, in a manner that officials not close to Xi could not, to explain Beijing’s economic policy, and to deliver on his promises of assistance. The source didn't provide any specifics.
A second foreign official, who also met He in this year, said that the vice-premier was well aware of China's problems. These include deflationary forces and an aging population on top of tariffs and the real estate crisis. He provided a sophisticated assessment of these issues.
The official also said that he appeared to be very confident in the prospects of Deepseek, a homegrown AI startup.
"TYPICAL BUREAUCRATS" AND DEMOLISHER
In his native Fujian Province, Xi began to build his power as a local official during the 1990s and the early 2000s. Around that time, he became a trusted ally of Xi and attended his wedding.
In 2009, the official was transferred to Tianjin, a port industrial city. Locals nicknamed him "He the Destroyer" for launching a massive urban renovation campaign and costly infrastructure projects which gave the city an attractive facade but also pushed it further into debt.
Alfred Wu, an expert on China at National University of Singapore said that He was focused on boosting the economy and "was particularly big on real estate and city redevelopment like many local officials of the time."
Wu, who met He as a reporter in Fujian, called the official a "typical bureaucrat" and a "very typical protege of Xi Jinping."
He added that his "number-one priority" is to implement Xi’s directives. This puts him in a more subordinate position. Reporting by Laurie Chen and Michael Martina, in Beijing; Additional reporting from Goh Kui Qing, in New York; Editing done by Katerina Ange, John Geddie, and Shri Navaratnam.
(source: Reuters)