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EU watchdog investigates Commission's relaxation of green rules
After receiving a complaint from campaigners who accused the EU executive of weakening sustainability laws without consulting the public, the EU Ombudswoman announced on Friday that she had opened an investigation into the way the European Commission developed its recent proposals for simplifying sustainability laws. The Commission, in February, proposed a set of legal changes, dubbed the "simplification Omnibus", that would exempt thousands smaller European companies from EU sustainability reporting requirements and reduce the obligations placed on larger firms to monitor their supply chains and check for human rights or environmental issues. In a statement, Ombudswoman Teresa Anjinho stated that "the decision to open an investigation follows a complaint from eight civil society organizations who argue the Commission violated its Better Regulation Guidelines by failing to explain why it failed to carry out a consultation with the public or conduct an impact assessment of the draft legislation." An independent watchdog, the European Ombudsman was established in 1995. It investigates maladministration within EU institutions. Anjinho assumed her position in February, replacing Emily O'Reilly who held the first female post. Anjinho has said that she has asked a number of questions to the Commission, including why there has not been a public consultative process. She has also requested more information about the companies and stakeholders who have been invited to the Commission for a meeting to discuss this issue. The complainants accuse the Commission of consulting with industry lobbyists at closed-door meetings prior to publishing its proposal. A spokesperson for the European Commission did not respond immediately to a comment request. After European industries complained about the burdensome EU regulations, the Commission proposed a change to the sustainability laws. This was in response to President Donald Trump's rollback of regulation and tariffs on imported goods. (Reporting and editing by Benoit van Overstraeten, Kate Abnett)
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Minister: Pakistan will offer concessions to US mining firms in tariff talks on investment
Pakistan will offer concessions to U.S. firms to invest in the country's mining sector, its Commerce Minister said. Islamabad is seeking to take advantage of Trump's desire to boost trade with South Asia. Washington announced tariffs on other countries last month that could impose a 29% tariff on Pakistani exports. This is due to a $3 Billion trade surplus. The tariffs were then suspended for 90-days to allow negotiations. Jam Kamal, Pakistan's Minister of Commerce, said that Islamabad would offer U.S. companies the opportunity to invest in mining in Pakistan's Balochistan Province through joint ventures and concessions such as lease grants. The Minister said this would be in addition of efforts to increase imports, especially cotton and edible oil, which is currently in short-supply in Pakistan. In the next few weeks, Pakistan will make its concessions to U.S. officials in talks on tariffs. Kamal didn't give any further details on the mines, or their bidding process. In an interview conducted on Thursday, he stated that "there is untapped potential" for U.S. firms in Pakistan. This includes mining machines and hydrocarbon ventures. The project director of Pakistan's Reko Diq gold and copper mining project in Balochistan said last month that the project is seeking up to $2 billion, including $500-$1 billion from the U.S. Export-Import Bank. Term sheets are expected to be issued by the beginning of the third quarter this year. Over its lifetime, the mine could generate free cash flows of $70 billion and operating cash flows of $90 billion. Donald Trump, the U.S. president, has stated that he is working on "big agreements" with India and Pakistan. This comes after Washington played a key role in brokering the ceasefire agreement between Pakistan and India in early this month. The fighting was the worst in decades between these nuclear-armed neighbors. Kamal stated that the previous U.S. Administration focused more on India. However, Pakistan is now recognized as a serious trading partner. Kamal, the Minister of Finance for Pakistan, said that Pakistan's upcoming federal budget will lower tariffs gradually. He stated that the United States have not identified any trade barriers or sectors of priority. The U.S. Embassy at Islamabad didn't immediately respond to an inquiry for comment.
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Official: US panel split over Nippon Steel bid but sees path forward
The White House said that a national security panel had divided opinions on its recommendation to Donald Trump regarding Nippon Steel’s bid to acquire U.S. Steel. However, most members of the panel believe that any security concerns posed by this deal can be addressed. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report on the implications of the merger for national security. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14 trillion in a desperate bid to get approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but the majority believed that any risks could be mitigated through mitigation," said the person, who declined to be identified because the matter wasn't public. Tadashi Imai, president of Nippon Steel, told reporters in Tokyo that talks with the U.S. Government about the merger were in their final stages. He declined to give any details, but said the company was awaiting Trump's decisions. "Through the investment we make and the transfer of technology that is the most advanced, U.S. Steel can maintain its competitiveness on a medium-to-long term." I hope Trump approves this deal," said Imai. U.S. Steel has not responded to a comment request. The recommendation is in line with the executive order that was signed by Trump last week, and which instructed CFIUS to determine whether the measures proposed by companies would mitigate the national security threats previously identified by CFIUS. In the April directive, it was also requested that a statement be made describing each agency's position as a CFIUS member as well as its reasons. Trump has 15 days from now to decide on the fate of this transaction. However, the timeline may slip. In January, after a CFIUS review of the previous deal, Joe Biden, then President of the United States blocked it on grounds related to national security. Companies sued claiming they had not received a fair review. The Biden White House rejected this view. This week, it was reported that Nippon Steel had said it would invest up to $4 billion dollars in a new mill if the merger were approved. (Reporting and additional reporting by Yuka Obaashi in Tokyo, editing by Leslie Adler David Gregorio, David Evans).
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Sibanye: 289 trapped workers in South African goldmine
Sibanye Stillwater, a South African company, said that on Friday it was working to rescue the 289 trapped mine workers at its Kloof gold mine in Johannesburg. It said that the workers were safe, and had gathered in a central location at the mine's underground assembly point. The mine is one of the deepest of the company, located about 60 km west of Johannesburg. The company did not give any details, but a spokesperson for Sibanye confirmed that the incident occurred in Kloof 7's shaft. He added that all of the miners had been accounted for, and the company provided them with food. The spokesperson said that safety procedures and an inspection of the shaft are currently underway, after which miners will be lifted to the surface. The spokesperson stated that they expect the situation will be resolved today by midday. South Africa has some of the deepest and oldest mines in the world. This year has seen a significant increase in the number of people who are able to access public transportation. 78 bodies have been pulled After months of attempting to curb illegal mining, police have cut off the food and water supply from an illegal mine. Sibanye, based in Johannesburg, is one of only a handful of South African gold miners who are able to squeeze profits out the region's deposits. The Kloof 7 shaft is mined at a depth of 3,200 meters. Two other shafts are also operated by the Kloof mine. It accounts for 14% Sibanye’s total gold production. The National Union of Mineworkers, or NUM, had earlier confirmed that it received reports of this incident. It said it occurred at approximately 1000 pm (0800 GMT) on the Thursday. Reporting by Felix Njini, Johannesburg; Writing by Bhargavacharya; Editing and proofreading by Bate Felix & Joe Bavier
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Kazakhstan's oil production is expected to exceed plans in this year, reports TASS
Erlan Akkenzhenov, the Energy Minister, was quoted saying that Kazakhstan's oil production will probably exceed its original plans of 96.2 millions tons for 2024 due to expansion in the Chevron-led Tengiz Field, despite pressure from OPEC+. Kazakhstan has cited the rising production at Tengiz as the reason it has consistently exceeded quotas established by OPEC+. OPEC+ is made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Kazakhstan and Russia. The Russian state-run news agency TASS reported that Akkenzhenov said in a podcast on Thursday night that the expansion of Tengiz was brought forward earlier than planned this year. This increased production by 25%. He said that "we will probably end the year higher than" the planned production of 96.2 millions tons, which is equal to about 2 million barrels per daily (bpd). A request for a comment from the Kazakh Energy Ministry was not responded to immediately. The energy ministry of Kazakhstan has stated repeatedly that it is committed the OPEC+ accord. Kazakhstan's OPEC+ quota rose from 1.473 to 1.486 millions bpd under the latest OPEC+ deal. Western oil companies, such as Shell, TotalEnergies, Eni, ExxonMobil, and Chevron are involved in oil projects in Kazakhstan. (Reporting and editing by Mark Trevelyan; Vladimir Soldatkin)
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Taliban talks with Russia and China about trade in local currency
Afghanistan's acting Commerce Minister said that the Taliban administration has advanced discussions with Russia to allow banks from both sanction-hit economies, Russia and Afghanistan, to settle trade transactions in local currency worth hundreds of millions in dollars. Haji Nooruddin, Azizi's minister, said on Thursday that the Afghan government had made similar offers to China. He said that discussions had taken place with the Chinese Embassy in Kabul. Azizi stated that technical teams in both countries were working on the proposal with Russia. As Moscow looks to use national currencies as a way to move away from the dollar, and Afghanistan is seeing a sharp drop in U.S. dollars entering the country as a result of aid cuts, the move makes sense. "We are engaged in specialist discussions about this issue, taking into account the regional and global perspectives on economics, sanctions and the current challenges Afghanistan faces, as well those that Russia is facing. "Technical discussions are under way," Azizi stated in an interview in his Kabul office. Requests for comments from the Chinese Foreign Ministry and Russian Central Bank were not immediately responded to. Azizi said that bilateral trade between Russia Afghanistan is currently at around $300 million, and this will likely grow as both sides increase investment. He said that his administration expects Afghanistan to purchase more plastics and petroleum products from Russia. Azizi stated, "I'm confident that this option is very good...we can use it for the benefit and interest of our people and country." He said that Afghanistan did around $1 billion worth of trade with China every year. A working team consisting of the (Afghanistan) Ministry of Commerce, the Chinese Embassy which is the authorized body that represents China in economic programs has been formed and talks are currently ongoing. Afghanistan's financial system has been cut off from global banking due to sanctions imposed on certain leaders of the Taliban government, which took control of the country after foreign forces left in 2021. In recent years, the US dollar's dominance as the dominant currency in the world has been questioned again due to the conflict with China and the fallout of the Russian war in Ukraine. In December, Russian president Vladimir Putin questioned whether it was necessary to keep state reserves in foreign currency, as they could be easily confiscated for political purposes. He said that domestic investments of such reserves were more attractive. Dollars have dominated commodity trading and Washington has been able to restrict market access to producers from Russia, Venezuela and Iran. Since 2022, Afghanistan has imported gas and oil from Russia. This is the first significant economic agreement since the Taliban returned to the power after 20 years of fighting against U.S. led forces. The United States has cut billions of dollars from aid to Afghanistan this year, and as a result, far fewer dollars are being flown into the country in cash to fund humanitarian operations. The Afghani currency, according to economists and development agencies, has remained relatively stable so far but could face future challenges. Azizi stated that his administration would not run out of U.S. Dollars in Afghanistan due to the stability of its currency and efforts made by the government to increase international investment, including through the Afghan diaspora. Mohammad Yunus Yawar reported from Kabul, and Charlotte Greenfield from Islamabad. Additional reporting was provided by Antoni Sladoski and Elena Fabrichnaya. Editing was done by Raju Gopikrishnan.
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Shell Indonesia transfers gas station business from Citadel to Sefas JV
Shell Indonesia announced on Friday that it has sold its gas station business ownership to a joint-venture between Citadel Pacific Limited, Sefas Group and Citadel Pacific Limited. The company will retain its lubricant division. Shell has said that the deal will be finalized by the end of next year. It includes 200 gas stations and a fuel terminal in Gresik. The move is part of its strategy to transform the company's portfolio. The company stated in a press release that "after completion, Shell will remain in Indonesia via brand licensing agreements." Citadel Pacific, a private holding company based in the Philippines, has businesses across a variety of industries, including aviation, telecommunications, gas distribution and fuel marketing. According to the statement, Sefas Group, the largest Shell distributor in Indonesia is Shell Lubricants. Citadel Pacific Group and Sefas Group have not responded to comments immediately. Shell has said that Indonesia is a key market for growth in its lubricants division. It owns a plant to blend lubricants oils with a capacity of 300 million litres per year and another plant, which is under construction, will produce grease. (Reporting and editing by Bernadette Cristina and Ananda Terresia)
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Iron ore posted a weekly loss due to a slowdown in Chinese steel demand and property weakness
The price of iron ore futures fell on Friday, and the weekly loss was due to persistent property weakness in China along with a slowdown in demand for steelmaking ingredients. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.24% lower at 718 yuan (US$99.73) per metric ton. The contract fell by 1.51% in the last week. As of 0707 GMT the benchmark June iron ore traded on the Singapore Exchange had fallen 0.76% to $98.25 per ton, a loss of 1.81% for this week. A poll shows that the property market in China is likely to continue to be weak this year, with home prices expected to fall by nearly 5%. Prices are also set to stagnate in 2026. Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22. According to Mysteel, the pace of stock decline has slowed due to a combination of hot and rainy weather in China. Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were overhauled. Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons. Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel." This should limit the downward movement of iron ore prices. Coking coal and coke, which are used to make steel, also fell, by a combined 4% and 1.81%. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The rebar fell by 0.42%. Hot-rolled coils dropped by 0.75%. Wire rods declined 0.15%. Stainless steels fell 0.04%. $1 = 7.1991 Chinese Yuan (Reporting and editing by Mrigank Dahniwala, Eileen Soreng).
Gold heads have the best week for more than a year on US fiscal concerns
Gold's best weekly gain since more than a week was expected on Friday as a weaker dollar and growing concerns over the deteriorating outlook of the world's largest economy increased the metal's appeal as a safe haven.
As of 0204 GMT, spot gold rose 0.3% to $3303.92 per ounce. Bullion is up 3% this week, and on track to have its best performance weekly since early April.
U.S. Gold Futures increased by 0.2% to $3.303.00.
Dollars have lost over 1% this week, and are on track for their worst performance in a single week since April 7. This makes gold priced in greenbacks cheaper for those who hold other currencies.
Tim Waterer, KCM Trade’s Chief Market analyst, said that "this week, trade optimism gave way to concerns about the U.S. fiscal situation. The resulting hesitancy toward U.S.-based assets has brought gold back into the picture with investors."
Gold can likely remain above $3,000 while U.S. tariffs, U.S. Debt and geopolitical tensions continue to swirl around financial markets.
The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday, embedding much of President Donald Trump's policy agenda and adding trillions of dollars more to the national debt.
The Senate, where Republicans hold a 53-47 majority, will now consider what Trump called a "big and beautiful bill".
The U.S. Treasury Department reported a soft demand on Wednesday for the sale of $20 billion in bonds with a 20-year maturity. Investor sentiment had already been weakened after Moody's reduced the U.S. triple A credit rating.
Gold is used to store value in times of political and economic uncertainty.
Iran's foreign minister Abbas Araqchi has warned that the U.S. will be held legally responsible for any Israeli attack against Iranian nuclear facilities. This comes after a CNN report stating that Israel was preparing to strike Iran.
Silver spot rose by 0.1%, to $33.12 per ounce. Platinum gained 0.4%, to $1.084.99, and palladium fell 0.1%, to $1.013.63. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy)
(source: Reuters)