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Barrick Mining's gold mine placed under state control Mali
A court in Mali on Monday placed the Loulo-Gounkoto Gold Complex under state control, a significant escalation in a dispute about taxes and ownership. The presiding judge announced that former Malian Health Minister Soumana Maadji will be appointed as the provisional administrator. This position is for a period of six months. Barrick has announced that it will appeal this decision. Barrick subsidiaries' gold stock was seized by the Malian government after it blocked gold exports. Barrick said in a press release that it believed these actions, which resulted in the temporary suspension its operations, weren't justified. Issaka K. Keita, a Barrick lawyer, said that justice was not served. Since January, the Loulo-Gounkoto Complex, which represented 14% of company output, was suspended amid a dispute between the company, the government, and over ownership and taxes. In May, the government, as a shareholder of the complex, asked the Bamako Commercial Court for an administrator to be appointed, signaling its desire to reopen it amid record high global gold prices. Barrick shares fell 0.7% on Monday morning in Toronto. The mines ministry of Mali declined to comment. Gold prices are on the rise and if the mine is reopened it could generate revenue of at least $1 billion in the next year. Barrick shares are lagging behind those of its peers, but the standoff risks restraining potential investors from Mali. Since 2023, the two sides have been negotiating over the implementation of the new mining code which increases taxes and gives the Government a larger share in the mines. They are trying their best to come up with a new contract that is in line the new law. According to sources familiar with the situation, Barrick's Mali mining license is due to expire on February 20, 2026. Barrick Gold, the company that used to operate this complex, stopped operations in mid-January, after the authorities confiscated three metric tonnes of its gold stock. The government had banned its exports since November 2024. Barrick has removed the complex's production forecast for 2025. Negotiations between the two parties continue outside of court. Mali has allowed Barrick to repatriate 20 percent of its earnings to an international bank account. This was an exception not granted to other foreign miner, according to two sources familiar with the situation.
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NOPA May US Soy Crush at 192.829 Million Bushels is below most trade estimates
According to data released by the National Oilseed Processors Association on Monday, the U.S. soy bean crush in May was lower than most estimates from the trade but reached its highest total ever for the fifth months of the year. NOPA members, who account for at minimum 95% of all soybeans crushed in America, processed 192.829 millions bushels of oilseeds last month. This is up 1.4% compared to the April crush, 190.226million bushels, and up 5.0% compared to the May 2024 crushing, 183.625million bushels. NOPA data revealed that it was the biggest May crush in history and the eighth largest for any month. U.S. crushing rates have increased as new plants opened and other facilities expanded their capacity to meet the rising demand for biofuels. Analysts said that the pace of processing has slowed in recent months from its maximum capacity due to a glut and narrowing margins at some plants. According to NOPA, the average daily crushing rate dropped to 6.220 millions bushels in may, from 6.341 millions bushels one month earlier. This is the lowest daily rate since September. A poll of 11 analysts found that the May crush was below the average estimate of 193.519 bushels. Estimates ranged between 188.500 and 195.933 millions bushels with a median estimate of 194.200. As of May 31, soyoil stock levels among NOPA member companies dropped to 1.373 bn pounds. This is down 10.1% compared to the 10-month high of 1.527 bn pounds reached at the end April, and down 20.3% compared to the 1.724 bn pounds of stocks one year ago. Seven analysts estimated that stocks would decline on average to 1.451 trillion pounds. The estimates ranged between 1.190 billion and 1.550 billion pounds with a median estimate of 1.482 million pounds.
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U.S. Steel shares rise after golden share details unveiled
U.S. Steel shares rose 5% Monday as the bid of Nippon Steel for the well-known American company neared the finish line. Details of the U.S. Government's golden stake were also revealed over the weekend. U.S. Steel's shares reached $54.86, just shy of the $55 Nippon Steel bid, after the Trump Administration gave the green light on the merger via an executive agreement and a signed order to ease national security concerns. This culminated a turbulent 18-month process. Questions arose about the "golden shares" that President Donald Trump suggested would give the American people 51% of the struggling U.S. company as part the acquisition. Howard Lutnick, Commerce Secretary Howard Lutnick's social media post on Saturday stated that "President Trump secured a perpetual Golden Share in Nippon Steel’s acquisition of U.S. Steel." The share will prevent companies from delaying or canceling investments worth $14 billion, moving production or jobs overseas, or shutting down or idle plants in advance of certain deadlines, without the consent of the president. A U.S. official confirmed a New York Times report that this power could be granted by a single class of preferred stock called Class G, which stands for "gold". Nippon Steel committed that the majority of U.S. Steel board members will be American and that CFIUS would approve three of these "independent U.S. directors". The term sheet said that "U.S. Steel can reduce production capacity if and only when it is approved by the majority of Independent U.S. directors." It also stated that the core U.S. management will be U.S. Citizens.
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Greece firefighters put out a wildfire near Athens
On Monday, both a fire brigade official and a witness said that a Greek fire burning near a small village northeast of Athens seemed to be largely contained. A fire brigade official reported that 140 firefighters, assisted by 38 engines, 18 aircraft, and 18 helicopters, continued to work on bringing the blaze under control. The situation, however, had improved. Residents of Ano Souli village, located about 40 km (25 miles), and Marathonas town, nearby, were forced to evacuate earlier due to the flames. By early afternoon local time, a cameraman reported that the fire did not seem to be spreading. According to the official of the fire brigade, the absence of heavy wind, which can complicate firefighting efforts in Greece during the warmest months, helped contain the blaze. Greece, located at the southernmost tip of Europe, has experienced frequent floods and wildfires over the past few years. Scientists say that this has been made worse by a rapidly changing climate. In order to combat wildfires, the country has spent hundreds millions of Euros to compensate farmers and households for damages caused by extreme weather conditions. It also purchased new modern equipment to fight fires. In anticipation of a challenging fire season, Greece has hired an unprecedented number of firefighters. In 2023, one of Europe's biggest wildfires ever recorded burned for several weeks in northern Greece and killed at least 20 people. A destructive wildfire that spread from a mountain down to the built-up area on the edge Of Athens forced residents to flee. Reporting by Stamos Pausalis, Angeliki Koutantou and Antonis Pohitos. Editing by Gareth Jones & Barbara Lewis
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Leaders of the G7 strive for unity in face of escalating conflicts in Ukraine and Middle East
Leaders of the Group of Seven nations started their annual meetings on Monday. War in Ukraine and the Middle East have added to the global economic uncertainty. The host Canada is trying to avoid a confrontation with U.S. president Donald Trump. G7 leaders, including the European Union and representatives from Britain, Canada France Germany Italy Japan, the United States, and Canada are meeting in Kananaskis, a resort in the Canadian Rockies, until Tuesday. The summit in Canada, with the escalating conflict between Israel and Iran, is seen as an important moment to restore some unity among democratic powers. Canada has given up on any attempt to adopt a comprehensive communiqué to avoid a repeat from a summit held in Quebec last year, where Trump had instructed the U.S. delegation to withdraw their approval of the final document after they left. Leaders prepared a number of draft documents, which were seen by us. These included one that called for the de-escalation in the Israel-Iran Conflict and others on migration, artificial Intelligence and critical mineral supply chain. According to sources familiar with the documents, none of the drafts have been approved by US officials. "I think there is a consensus on de-escalation." Keir starmer, British Prime Minister told reporters that it was important to get everyone on the same page and be clear as to how this could be achieved. The first five-months of Trump's second tenure have thrown Trump's foreign policy into disarray, raised concerns about his close ties with Russia, and led to tariffs against U.S. allies. The focus of Monday's talks will be the economy, trade agreements, and China. The temporary rise in oil prices that has occurred since Israel began its strikes against Iran on 12 June complicates efforts to reach an agreement on lowering the G7 price limit on Russian oil, even if Trump decides to opt out. On Monday, oil prices dropped on reports that Iran was seeking a ceasefire. Diplomatic sources say they are hoping to encourage restraint, and a return of diplomacy. "We are one." "Nobody wants Iran to get a nuke and everyone wants the discussions and negotiations restarted," France's president Emmanuel Macron said to reporters in Greenland, Sunday before he left for Canada. Washington has the ability to restart talks with Israel, he said. Trump said that many meetings and calls were being held to broker peace. RUSSIAN ELEPHANT INSIDE THE ROOM Trump, highlighting the unease of some Washington's allies on Saturday, spoke with Russian President Vladimir Putin. He suggested that Putin could play a mediatory role between Israel and Iran. Macron rejected the idea. He argued that Moscow couldn't be a negotiator, because it started an illegal conflict against Ukraine. A European diplomat stated that Trump's suggestion demonstrated the fact that the U.S. was still thinking about Russia, even though it had been kicked out in 2014 for annexing Crimea. "In the U.S.'s eyes, there is no condemnation of Ukraine; no peace with Russia; and even now credit for its role in mediating Iran. The diplomat stated that this G7 will be tough for Europeans. The summit will be held on Tuesday. Both the NATO Secretary General Mark Rutte and Ukraine's president Volodymyr Zelenskiy will attend. The European officials said that they were hoping to use this meeting and the NATO summit next week to convince Trump to take a more aggressive stance against Putin. Macron stated that the G7's goal should be to bring us back together, to achieve a ceasefire in Ukraine, which would lead to a robust, lasting peace. It is also important to see if President Trump will impose much stronger sanctions against Russia. (Suzanne Plunket contributed additional reporting; Caroline Stauffer, Paul Simao, and Rod Nickel edited the article).
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Orsted prefers to invest more in Taiwan and South Korea than in new markets in Asia.
Orsted, world's largest offshore wind developer will increase its investment in Taiwan and South Korea, where it already has projects. Instead of expanding into new markets in Asia a senior official at the company said on Monday. The Danish company has lost around 80% of the value of its stock market since its peak in 2021 due to rising costs, disruptions in supply chains and a loss of investor trust in offshore wind. Per Mejnert Kristensen is Orsted's Asia-Pacific President. He spoke on the sidelines at the Energy Asia2025 conference. Orsted, which is the largest offshore developer in terms of capacity, retracted its 2030 target of 35-38 gigawatts of installed renewable capacity this year. Chief Executive Rasmuserrboe now faces the challenge to revive investor confidence and meet the new realities of offshore wind industry. The company has 10 gigawatts of offshore capacity worldwide, including 0.9 in Taiwan. The company has also developed projects in South Korea, Australia and other countries. We know we live in a changing environment. Kristensen added that "we need to see clearly investmentable projects" and he hoped that other Asian countries would follow the policies of Taiwan's government. They have excellent wind conditions for offshore winds. Because they have shallow water, you can build fixed-bottom offshore wind parks on the ocean. On the political front, they were very ambitious and had a clear vision. They then managed to create offshore wind frameworks which made projects investable," said he. He said that international investors and local partners could see clearly a path to investment for the next 30-40-50 year. He said that while the political ambition was there in some countries, it wasn't always translated into commercially viable frameworks. (Reporting and editing by Susan Fenton; Sudarshan Varadhan)
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Starmer: US-UK trade agreement to be completed "very soon"
Keir starmer, the British Prime Minister, said that the United States and Britain should "very soon" finalise the implementation of the trade agreement agreed last month. This was ahead of the meeting between Donald Trump of the United States in Canada. Starmer said to reporters at the Group of Seven (G7) Meeting that he would be meeting President Trump and discussing with him their trade agreement. "I am very happy that we have made that trade agreement. We are now in the final stage of implementation and I expect this to be completed very shortly." The United States and Britain reached an agreement on lower tariffs for Britain. Imports of UK vehicles are subject to lower tariffs Britain has agreed to lower tariffs for U.S. beef, ethanol, and aluminium. The deal was delayed until the details were finalised. The U.S. has agreed to reduce the 25% tariffs for steel and aluminum imports from Britain, to zero. However, a quota must be set up to ensure that British steel imports meet the supply chain requirements. Britain had Tariffs as low as 50% The U.S. has imposed tariffs on steel and aluminum on other countries this month. However, if a deal is not reached to reduce the tariffs by July 9, then the U.S. could increase the tariffs. Reporting by Suzanne Plunkett; Writing by Sachin Ravikumar and Alistair Smout, Editing by Kate Holton
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Debswana, a Botswana-based company, will approach the capital markets to finance Jwaneng underground Project
Debswana Diamond Company in Botswana is turning to the international capital market to fund its $6 billion Jwaneng Underground Project, said a director on Monday. The company's declining revenues have made it difficult to finance capital projects. Andrew Motsomi, managing director of the company, said that despite the decline in the global market for diamonds since the second half 2023, it is still pressing forward with its plan to convert its flagship Jwaneng Mine into an underground operation in order to extend its lifespan to 2054. This was revealed at a mining event in Gaborone, the capital. Debswana will reduce production by 27% between 2024 and 2025. Last week, the company announced that it would further reduce production by 16% in 2025 to 15 million carats. Debswana is a joint venture 50-50 between Botswana’s government and De Beers. It has previously funded its capital projects mainly with funds generated internally or from investors. Motsomi stated that the company was now working to acquire an international credit score to allow it access to capital markets. Motsomi did not specify how much money the company was looking for. "With revenues decreasing, the company faces escalating requirements for capital." Debswana anticipates an increase of capital expenditures from 5 billion pula (373.3 million dollars) per year for the last five years to 8 milliards pula per year over the next five years," he stated. Debswana began the underground Jwaneng project in May of last year, as open pit operations are expected to reach their limit by 2034. Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, also spoke at the conference. She expressed her optimism for a recovery in sales of diamonds starting in 2026. This will be supported by structural changes and long-term investments. Since January, the market has begun to show positive signs. "While we're not where we want to, the upward trend gives us hope that we can have a stronger recovery in the second half of the year," said she. ($1 = 13,4048 pulas). (Reporting and editing by Nellie Peyton, Alison Williams.
Sources say that gold mining companies in Ghana and Ivory Coast are resisting tax increases.
Sources in the industry say that gold miners in Ghana and Ivory Coast refuse to pay higher taxes this year because they feel it violates their licence agreements.
West African countries have taken advantage of the soaring gold price to raise mining taxes, and generate additional revenue in order to close budget deficits.
The six sources in the industry said that mining companies in the area have mostly complied with the rules, except in Ghana and Ivory Coast. Ghana is Africa's largest gold producer and Ivory Coast is Africa's seventh biggest.
Sources say that mining companies have agreed to negotiate with Ivory Coast or Ghana governments in order to cancel the tax increases, and to not pay them while doing so.
Gold Fields and Newmont are among the producers in both countries. Barrick, Endeavour, Allied Gold, Perseus, AngloGold Ashanti and Barrick. All of them declined to respond or didn't reply to requests for comments.
Ivory Coast implemented a flat tax on royalty of 8%, up from the previous 3%-6%, depending on a miner's agreement.
Ghana, which is in default on its debts and is going through a debt restructuring process, increased a tax from 1% to 3% on the annual gross production of gold miners in March after appealing to companies to help plug revenue gaps.
If people invest for the long-term and the rules are changed midway through, this can have a negative impact on the project. "New rules can be applied to new projects," stated an executive from a major international miner operating in Ivory Coast who requested anonymity.
Requests for comments from the mines and finances ministries of Ghana and Ivory Coast were not answered.
Two other sources said that Burkina Faso, a military-run country in the region, introduced a sliding-scale royalty regime in early February. The system linked royalties with gold prices and the miners have mostly complied, they added.
The new mining codes have introduced aggressive regulations that are mostly followed by the miners of Mali, Niger, and Guinea.
ONGOING NEGATIONS
Gold prices are up nearly 30% in this year. This has led to higher profits for gold miner in the first quarter. However, sudden regulatory changes can be a major obstacle when doing business in Africa.
Barrick and Mali's military-ruled Government have been locked in a standoff for two years over new mining laws aimed at increasing state revenue. The dispute has led to the closure of Loulo-Gounkoto, detentions of executives, and a plunge in Barrick's share price.
Barrick, a company that also operates in Ivory Coast did not reply to a comment request.
A mining executive revealed that the Ivory Coast miners are in talks with the finance and mines ministries to resolve the issue of the new taxes.
Ghana's companies, under the Ghana Chamber of Mines, have asked for the government to reconsider their measures.
In the event that the talks do not succeed, the companies may be penalized for late tax payments. Unnamed Ghanaian mining company said that the tax authority had the right to close a company and impose fines. Companies could sue the tax authority if they prove that their contracts are exempt from tax increases.
Denis Gyeyri is Africa Senior Program officer at the nonprofit Natural Resources Governance Institute. He said that governments raise taxes too quickly when prices rise, but do not lower them when they fall.
Gyeyri stated that loyalty rates should be progressive, compensating mines with low prices while maximising government revenue through high prices.
He said that countries should keep their tax rates as competitive as possible. For example, royalty rates in Western Australia vary from 2.5% to 7.5%, depending on how much processing is done. Maxwell Akalaare Adombila (reporting) Loucoumane Coulibaly and Emmanuel Bruce, in Accra and Abidjan. Editing by Veronica Brown & Susan Fenton
(source: Reuters)