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US House Budget Bill seeks to spend more than $1.5 Billion for Strategic Petroleum Reserve
The U.S. House Committee released a proposed budget that included more than $1.5billion to replenish and maintain Strategic Petroleum Reserve. It also cancelled a sale mandated by Congress, after huge sales in 2022. The House Energy and Commerce Committee's proposal, released late Sunday, includes $1.32 billion for oil purchases to replenish the SPR - the world's biggest emergency crude stockpile - and $218 millions for the maintenance of the facility. In March, U.S. Energy Sec. Chris Wright estimated that it would require $20 billion over years to achieve President Donald Trump's aim of filling up the SPR. This would benefit domestic energy producers in spite of relatively low oil price. The SPR has a capacity of 727 million barrels, and it currently stores about 399 millions barrels. The House Committee is controlled by Trump and his fellow Republicans. This move is part a larger proposal to cut grant and loan funding in the landmark climate law of former president Joe Biden, the Inflation Reduction Act. Biden, a Democrat from New York, sold a record number of barrels in 2022, after Russia invaded Ukraine. This brought the SPR to its lowest point in 40 years. The House measure is up for a vote in a committee on Tuesday. It also repeals the sale mandated by Congress of 7 million barrels out of SPR until fiscal year 2027. The Biden administration worked with Congress in order to cancel the congressionally mandated sale to keep SPR levels from dropping. The Department of Energy published a proposal on Monday in the Federal Register that would allow government to purchase oil for SPR at a market-based index price instead of a set price. This means the price of oil can fluctuate with the market. The Biden administration adopted a rule of fixed prices, arguing it was helpful in arranging fast purchases for the Reserve. In its new proposed rule, the DOE stated that fixed-price agreements have "only served as a means to create unnecessary confusion in the industry." The new rule is set to take effect within 60 days, unless "significant negative comments" are received. (Reporting and editing by Mark Porter; Timothy Gardner)
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Codelco, Rio Tinto and other copper mining companies are stepping up their efforts to develop a copper "mining district" in Chile
Codelco, a Chilean copper miner, and Rio Tinto, a global mining company will work together to create a "mining district" for copper around their Nuevo Cobre joint project in northern Chile's Atacama Region. Codelco released a statement stating that the new agreement creates a joint comittee and shares funding for initial studies. The 12-month period can be extended. This comes after both companies established in 2023 the Nuevo Cobre Project to conduct exploration in the region, a joint-venture in which Codelco holds about 43% and Rio Tinto around 58%. Codelco, world's largest copper producer, pointed out that Nuevo Cobre sits next to its San Antonio property. Codelco stated that "the geological potential in the Atacama region as a whole and the proximity of both mining projects presents an opportunity to create an entire mining district." The two companies are aiming to "maximize" the value of the area through various infrastructures, it said. In a statement from Codelco, Rio Tinto CEO Jakob Stausholm stated that the partnership would "make the most of our complementary expertise and capabilities" to drive exploration in a manner that benefits the Atacama Region. (Reporting and editing by Kylie Madry, Daina Beth Solon and Fabian Cambero)
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US House Budget Bill seeks to spend more than $1.5 Billion for Strategic Petroleum Reserve
The U.S. House Committee released a proposed budget that included more than $1.5billion to replenish and maintain Strategic Petroleum Reserve. It also cancelled a sale mandated by Congress, after huge sales in 2022. The House Energy and Commerce Committee's measure, released late Sunday, includes $1.32 billion for the purchase of oil to replenish the SPR - the world's biggest emergency crude stockpile - and $218 millions for the maintenance of the facility. In March, U.S. Energy Sec. Chris Wright estimated that it would require $20 billion over years to achieve President Donald Trump's aim of filling up the SPR. This would benefit domestic energy producers in spite of relatively low oil costs. The SPR has a capacity of 727 million barrels, and it currently stores about 399 millions barrels. The House Committee is controlled by Trump and his fellow Republicans. This move is part of an overall proposal to reduce grants and loan funding in the landmark climate law passed by former president Joe Biden, Inflation Reduction Act. Biden, a Democrat from New York, sold a record number of barrels in 2022, after Russia invaded Ukraine. This brought the SPR to its lowest point in 40 years. The House measure is up for a vote in a committee on Tuesday. It also repeals the sale mandated by Congress of 7 million barrels out of SPR until fiscal year 2027. The Biden administration worked with Congress in order to cancel the congressionally mandated sale to keep SPR levels from dropping. (Reporting and editing by Mark Porter; Timothy Gardner)
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Sources: Attacks on Burkina army bases and villages kill dozens
Sources said that an attack on a Burkina Faso military base killed several soldiers while another assault in the southern part of the country left dozens dead civilians. This underscored the spiraling insecurity within the junta led country. Two security sources confirmed that the army base in Djibo was attacked on Sunday morning. A police station and a market were also targeted. Sources who spoke anonymously for fear of reprisals by the government said that soldiers, pro-government militiamen, and civilians had been killed, although a complete toll wasn't available until Monday. Many of our men, both soldiers and (militia fighters) have fallen. Weapons were also taken. "There were also many deaths on the population side," said one source. According to an army report from October 2022, the Djibo Base has been attacked multiple times. The latest attack was not immediately claimed by anyone. The area is close to where Al Qaeda affiliate JNIM operate. Ibrahim Traore, who took power through a coup in the year 2022, promised to reverse the tide of a jihadist movement that had spread throughout the region ever since it began in Mali thirteen years ago. In many parts of the country, militant attacks continue. According to Segda Bila of the committee responsible for burying the deceased, at least 58 people were killed in three villages of Koulpelogo province, located near the border of Togo. Burkina Faso’s military government is under fire from rights groups for the measures taken to protect national security. Human Rights Watch stated on Monday that the army "participated" in the March massacre of ethnic Fulani civilians by pro-government militias in Boucle du Mouhoun, western Boucle du Mouhoun. In March, a government spokesperson dismissed online images purporting that those killings were a "disinformation" campaign of "false info aimed at undermining the social cohesion." Monday, the government did not respond immediately to a comment request. Reporting by Burkina Faso Newsroom; Writing and editing by Sharon Singleton
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Terna and IPTO Sign 2-Billion-Euro Deal on Italy-Greece Power Connection
Italian power grid operator Terna, and its Greek counterpart IPTO have signed a deal for a new underwater electricity interconnector that will connect Italy with Greece. The agreement is worth almost 2 billion euros. The deal was announced following a summit hosted by Italian Prime Minister Giorgia Melanie and her Greek counterpart KyriakosMitsotakis in Rome's Villa Doria Pamphili (17th century), which also included ministers from both nations. Meloni said that "our geographical location in the Mediterranean has given us an advantage in terms of interconnections, since it is the shortest path between the Atlantic Ocean and the Indo-Pacific." After a massive blackout that hit Spain and Portugal in the last month, nations began to look for ways to diversify their routes and supply. Terna announced that the new high-voltage cable, GRITA 2, would have a maximum transmission capacity of 1,000 MW, and will span approximately 300 km, including 240 km subsea cables at depths up to 1,000 meters. The statement added that the two companies will invest 1.9 billion dollars in the project. The new infrastructure, which will begin on the Italian side in the south-eastern Puglia area, will work alongside the existing interconnection that has been operating since 2002 and with a capacity of 500 MW. Mitsotakis said that a deal had been struck between Italy's Ferrovie dello Stato and Athens transport ministry to invest in improving railway safety in Greece. A train crash in Greece in 2023 killed 57 people. The Greek leader said that the deal was about "kickstarting a new relationship...which has been tested under the shadow of an enormous tragedy". The Hellenic Train in Greece is a subsidiary of Italy's FS. $1 = 0.8990 euros (Reporting and editing by Angelo Amante, Angeliki Koutantou)
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Tata Steel India beats its quarterly profit forecasts on lower expenses
Tata Steel reported on Monday a higher-than-expected quarterly profit, thanks to a drop in input costs. The consolidated net income of the company grew by more than twice to 13,01 billion rupees (US$153.32 millions) for the quarter ending March 31. This was higher than analysts' expectations of 10,63 billion rupees. It incurred exceptional charges of 6.49 billion rupees in the same quarter last year, relating to the closure a block within the state of Odisha and expenses associated with its European operations. Analysts say that costs of coking coal, iron ore and other key raw materials for steelmaking declined during the quarter. This helped steelmakers such as Tata Steel to increase their profits. Cost of materials, which accounts for over 30% of the company's expenses, dropped by 18.5%. According to data compiled and published by LSEG, Tata Group's total revenue from its operations dropped 4.2%, to 562.18 trillion rupees. Analysts had expected a revenue of 567.17 trillion rupees. Tata Steel announced its results just weeks after India implemented a temporary tariff of 12%, also known as a safeguard duty, for some steel imports. The measure was intended to help domestic mills that had to reduce operations and consider job cuts because cheaper shipments were coming from China, South Korea, and Japan. Analysts reported that domestic mills' realisations improved sequentially, as prices recovered marginally after a long period of decline. Tata Steel, however, saw its volumes affected by the quarter's relining of its Jamshedpur blow furnace. JSW Steel, a larger rival, has yet to announce its quarterly results. ($1 = 84.8560 Indian Rupees) Reporting by Manvi Pan and Anuran Sahdhu from Bengaluru, Editing by Tasim Zaid
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Budget proposal by the US House of Representatives targets climate and clean energy cuts
U.S. House lawmakers laid out plans on Sunday to phase out key clean energy tax credits, as well as slash billions in spending related to electric vehicles and renewable energy, fast-track gas exports and claw back unspent climate-related funds as part of the Republicans' attempt to pass a multi-trillion-dollar budget to carry out President Donald Trump's agenda. The House Committee on Energy and Commerce has drafted a proposal that will be voted on on Tuesday. It would generate $6.5 billion by repealing climate-related portions of the massive Inflation Reduction Act legislation of the Biden Administration. The bill would repeal important rules of the Biden administration Environmental Protection Agency, such as one which would reduce emissions allowed for light and medium duty vehicles beginning with model year 2027. The Energy Department would also receive $2 billion to replenish the Strategic Petroleum Reserve. The proposal was announced in an op-ed published by the Wall Street Journal on Sunday. The bill would rescind any remaining money that has not been spent from the $27 billion fund for greenhouse gas reduction. This money had been a target of EPA Administrator Lee Zeldin who alleged in court cases that it was being used fraudulently. The Energy Department would also remove all unspent IRA funding from its loan office, including tribal energy loan guarantee programs and financing for transmission facilities. The IRA would revoke all unspent funds made available for the reduction of methane at oil and gas installations and greenhouse gas reporting. It would also revoke funds allocated to reduce air pollution at ports, manufacturing facilities and in schools. Lena Moffitt, Executive Director of Evergreen Action, said, "Their plan guts investments which are cutting energy costs and powering a manufacturing boom in the United States, as well as delivering healthcare to communities who need it most." (Reporting and editing by Andrea Ricci; Valerie Volcovici)
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Roche expands its US presence by $700 Million in North Carolina
Roche Group announced on Monday it will invest over $700 million into a new manufacturing facility in North Carolina. The company is the latest to expand their presence in the United States in response to President Donald Trump’s tariff policies. The new facility in Holly Springs, North Carolina will support Roche's and Genentech’s future portfolio of obesity drugs. In March, Roche acquired the rights to petrelintide from Zealand Pharma of Denmark. This therapy is currently in mid-stage clinical trial. Roche's obesity pipeline includes drugs that treat obesity and diabetes from Carmot Therapeutics, which it acquired in 2023. The company stated that "this initial investment may expand in the future based on the business needs and U.S. policies." Roche announced in April that it will invest $50 billion over the next five-years in the United States, and plans to create 12,000 new jobs. This announcement is part a broader trend in which drugmakers like Eli Lilly and Johnson & Johnson have made massive investments. Gilead has also pledged to increase its domestic production as a response to President Trump’s tariff policies. The Trump administration is pressuring U.S. pharmaceutical companies to move production in-house. Last week, the President signed an executive directive to speed up approvals for pharmaceutical plants, encouraging U.S. manufacturing. Trump has also stated that he Plans to Sign He said that the executive order aimed to align US drug prices with those of other countries. This move, he claimed on social media, could lead to a 59% drop in drug costs. (Reporting and editing by Tasim Zaid and Shailesh Kuber in Bengaluru)
Sumitomo Metal buys 30% stake in Rio Tinto's Winu copper and gold project in Australia
Sumitomo Metal Mining, a Japanese company, announced on Monday that it had agreed to purchase a 30% stake from Rio Tinto in the Winu Copper-Gold Project in Western Australia.
The move is part of efforts by the Japanese miner to expand its assets in copper and gold, and comes after the two miners agreed last December to create a joint venture for the development and operation of the project.
As part of the agreement, SMM is required to pay Rio Tinto $195 million in cash upfront as a consideration for its acquired interest. This payment will be made to Rio Tinto when the transaction closes, which is expected to occur in 2025.
SMM also agreed to pay deferred payment of up $235.4 millions, contingent on the achievement of certain milestones, based upon a potential future expansion of mill throughput.
Rio Tinto discovered a mineralized zone of copper and gold in 2017 in the Great Sandy Desert in Western Australia.
SMM stated that the estimated indicated and implied resources of the project totaled 741 million metric tonnes by the end of 2024. This includes approximately 3 million tons copper and 250 tones of gold.
Rio Tinto has begun the environmental permit processes for a mill that will have a throughput of 10 million tonnes per year.
SMM's spokesperson said that it is still unclear when the production will begin, and how much total cost of development there will be.
SMM, which produced 230 tons of copper via equity holdings during the fiscal year that ended on March 31, plans to increase its copper production to 300,000 tonnes over the long-term. (Reporting and editing by David Evans; Yuka Obayashi)
(source: Reuters)