Latest News
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REalloys joins forces with Canada's Rare Earths Council
REalloys, a U.S. startup that produces heavy rare-earth magnets, announced on Monday that it will partner with Saskatchewan Research Council (Canada's unit for technology innovation) to expand a processing plant for heavy rare earths, which is expected to begin operating in 2027. REalloys said it would invest around $21 million to expand the production of heavy rare Earths in exchange for a long term offtake agreement that covers 80% of its annual production. The announcement is made as the U.S. Government seeks to diversify the risk away from China, the top supplier of magnets, by developing an alternative supply line for the materials used in wind power and defense industries. REalloys of Ohio, formed in 2023 plans to convert rare earths into metal in Saskatchewan, either from mined ore, or recycled electronics. It signed an earlier agreement to source ore for a Greenland-based project that Critical Metals Corp hopes to develop. The Saskatchewan facility initially will produce 30 tons of dysprosium, 15 tons terbium, and 400 tons neodymium (NdPr). This will increase to 600 tonnes per year once the expansion is completed. REalloys is developing a mining project in Saskatchewan that will support the magnet rare-earths supply chain. In September, the U.S. Export-Import Bank sent a letter of intent for a loan up to $200,000,000 to fund processing and magnetic facilities. (Reporting by Melanie Burton in Melbourne; Editing by Jamie Freed)
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Gold prices rise on Fed rate cuts and a weaker dollar
Gold prices increased on Monday due to growing expectations that the U.S. will cut interest rates, which pushed up the dollar ahead of this week's Federal Reserve policy meeting. By 1127 GMT, spot gold had risen 0.2% to $4206.36 an ounce. U.S. Gold Futures for February Delivery fell 0.2% to $4235.60 an ounce. Dollar-priced Gold is now more affordable to overseas buyers thanks to the dollar index, which has been trending lower since December 4. The gold price is rising due to a lower dollar, and the market expects that the Fed will cut rates this week. This was stated by UBS analyst Giovanni Staunovo. Last week, data showed that U.S. consumers spent more in September. This reflected a slowdown of the economic momentum, despite rising costs and weakness on the labour market. Private payrolls in November saw their biggest decline in more than two-and a half years. CME's FedWatch tool shows that markets have priced in a 87% chance of a rate cut of 25 basis points at the Fed meeting on December 9-10, after the release of weak data and the dovish comments of several Fed officials. Gold is a non-yielding asset that tends to be in high demand when interest rates are low. Staunovo added, "We are still looking for rate cuts in the coming year. This should push gold up to $4,500/oz." Silver rose 0.3% to $58.43 an ounce after reaching a record-high of $59.32 per ounce on Friday. Silver is also benefiting from this factor. Staunovo added that the expectation of improved industrial demand due to monetary and fiscal stimuli helped silver outperform gold over recent weeks. White metal prices have doubled this year due to supply shortages and the designation of the mineral as a critical one by the U.S. Palladium rose by 1.2% and platinum was up 0.9% at $1,656.61. (Reporting and editing by Susan Fenton, Louise Heavens and Pablo Sinha from Bengaluru)
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Copper reaches record high on supply concerns ahead of Fed decision
Prices of copper reached record levels on Monday, as the lower dollar in anticipation of the Federal Reserve meeting this week led to a rush of purchases. Concerns about future shortages also fueled optimism. Benchmark copper at the London Metal Exchange rose 0.3% to $11,657 per metric ton by 1057 GMT, from a previous peak of $11,771 per ton. This represents a gain in excess of 30% for this year. The U.S. Central Bank is expected to reduce rates. The U.S. dollar will be affected, and when it falls the price of metals priced in dollars becomes cheaper for holders other currencies. This relationship is used by funds as a way to generate buy-and-sell signals based on numerical models. The mine supply disruptions of recent years, such as the accident at Freeport-McMoRan's giant Grasbery Mine in Indonesia, are partially responsible for the expected deficits. The rest of the world has also seen a tightening of supplies as traders have shipped copper to the United States due to higher Comex prices ahead of U.S. president Donald Trump's proposed import tariffs. The U.S. tariffs on metals used in construction and power remain under review. An update is due by June. The copper inventories at the Comex-approved warehouses are now a record 436,853 metric tons or short tons. On Friday, the number of people who attended church has increased by more than 300% compared to March. Macquarie analysts estimate that there are roughly 335,000 additional tons of metals sitting in storage in the U.S. Macquarie stated that the metal had been transferred into Comex warehouses, and November imports were lower than usual before Section 232. The market surplus is 400,000 to 600,000 tonnes per year, if you allow for the transfer of stocks. It's a problem that the majority of this stock is in America, causing artificial shortages elsewhere. Other metals saw aluminium slip 0.1%, to $2.895 per ton. Zinc gained 0.4%, to $3.110. Lead added 0.4%, to $2.011, while tin rose 0.3%, to $40.175. Nickel slipped by 0.1%, to $14.930. (Reporting and editing by Leroy Leo; Pratima Dasai)
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Draft document shows that EU will delay proposals on carbon border tax for auto industry
By Kate Abnett and Philip Blenkinsop BRUSSELS - According to a draft agenda of the European Commission, seen by, the European Union intends to delay until December 16 legal proposals for expanding its carbon border levy, and possibly weakening a ban on new CO2-emitting vehicles in 2035. Carmakers and governments are closely watching the plans, including Germany, Italy and others, who have asked that the EU revise their 2035 auto CO2 emission policy, as it currently stands, would effectively ban new combustion engine vehicles. The original publication date for the proposals was Wednesday. On Monday, officials from the Commission were still negotiating timings and the draft agenda may still change before publication. Some EU officials have suggested that the proposals for autos could be further delayed, possibly into 2026. The spokesperson for the Commission declined to comment on a draft agenda that was seen by. Brussels is working on proposals to extend its carbon border tariff, which will be implemented in the near future, to include more downstream products like washing machines. This would prevent foreign companies from avoiding this world-first measure. The proposals for autos are being developed amid lobbying by European carmakers to allow greater flexibility in the 2035 policy. This includes allowing plug-in hybrids and combustion engine vehicles that run on so called CO2-neutral gasolines, continue sales beyond this deadline. The European auto industry needs flexibility to deal with the slower-than-expected electric vehicle sales and the fierce competition from China. The EU's climate goals could be compromised if the policy is weakened. This would result in more CO2-emitting vehicles on the roads of Europe by 2050 when it has committed to achieving net zero emissions for its entire economy. Reporting by Kate Abnett and Philip Blenkinsop. Editing by Louise Heavens.
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Sudan's RSF paramilitary RSF claims it has taken control of the strategic Heglig Oilfield
The Sudanese paramilitary Rapid Support Forces, or RSF, announced on Monday that they had taken over the strategic Heglig Oilfield in South Kordofan Province. Heglig is the largest processing plant for South Sudanese crude oil. This makes up a large part of the government's revenue. Sources from the government said that the workers and the government forces at Heglig oilfield retreated on Sunday in order to avoid any clashes which could have damaged oil facilities. Sources at the Heglig Oil Field said that oil workers and the army had left the oil field for South Sudan. The Greater Nile Pipeline System transports oil to Port Sudan at the Red Sea, where it is exported. This makes the Heglig site crucial for both Sudan's hard currency earnings and South Sudan which is landlocked, and relies on pipelines mostly through Sudan. The conflict that broke out in April 2023, between the Sudanese Army and the RSF, has disrupted South Sudan’s oil flow. Before the conflict, South Sudan exported between 100,000 and 150.000 barrels of crude oil per day via Sudan. (Reporting and editing by Bernadettebaum)
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Howery, the US envoy to Greenland, meets with officials in Greenland amid Trump's interest for the island
PayPal co-founder Kenneth Howery will meet with officials from Greenland, Denmark and Nuuk in Nuuk, this week, on his first trip to the Arctic Island. This comes amid tensions surrounding President Donald Trump's desire to acquire the semi-autonomous area. The relationship between Denmark and the United States has been strained ever since Trump revived talks of taking Greenland from Denmark. The U.S. Embassy posted a photo on Instagram of Howery and Greenland Foreign Minister Vivian Motzfeldt. Greenland’s government announced on Saturday that the meetings of the Joint Committee (also known as the Permanent Committee) and the Joint Committee (also known as the Joint Committee), which alternately take place in Greenland and with the U.S.A., are a forum to discuss civilian and military co-operation, including the American presence on this strategically located island. Motzfeldt stated in a press release that "these committee meetings are intended to promote direct dialog and cooperation with the United States regarding several areas of civilian and military importance." Washington claims that Greenland is a Danish territory and vital to the U.S. for its security, especially the early-warning ballistic missile system. The shortest route between Europe and North America passes through the island. Motzfeldt said that trust and respect were the foundations of any partnership. It is no secret, however, that the last year was challenging. The Danish foreign ministry refused to comment on the participation of Denmark. The Danish and Greenland government have both ruled out a cession of the island's resource-rich resources to the United States, although Denmark admitted neglecting its military capabilities. (Reporting and editing by Jacob GronholtPedersen, Soren SirichJeppesen; additional reporting by Stine Jacobsen)
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Turkey's gold price spread shrinks as demand increases
After a period when the global gold price surged in the fall, the spread between the physical gold prices in Turkey, and the global market level has shrunk sharply, traders reported. The spread between gold prices in Turkey denominated in TL and their global equivalents peaked at over 5%. The spread between the TL-denominated price of physical gold in Turkey and the TL equivalent of global prices peaked at more than 5%. Traders said that the wide spread had affected the lira during the fall as the surge in gold demand was met by imports. Retail flows in Turkey have seen a decrease in demand for gold and foreign currency, but an increase of gold supply. In recent weeks, this shift has relieved pressure on Turkey’s external balances as well as the lira. The reversal is due to a number of factors, including a drop in FX protected deposit (KKM), the end of soaring global gold prices and the decline in local demand, which was strong in the summer months. The value of KKM deposit has dropped to $600m from its peak of $140billion in August 2023. The FX and Gold supply for client-based transactions has also increased significantly over the last week, especially in Istanbul's Grand Bazaar. The dollar/TL rate remained steady at around 42,5 during this time. One FX trader stated that the local sharp demand for Gold has stopped. He added that gold supply has been increasing since late November. Turkey's central bank estimates the country's gold reserves - stored in metal at home or "under-the mattress" - to be almost $500 billion. In Turkey, physical gold has been the preferred investment to combat high inflation. Gold spot prices have risen from $3,500 per ounce in early September, to $4,378 an ounce in October, a 25% increase, before dropping to $4,200 currently. (Reporting and editing by Jonathan Spicer, Daren Butler and Nevzat Dvranoglu)
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Finmin: Indonesia will impose a coal export tax up to 5% in the next year
Purbaya Yudhi Sadewa, Indonesia's Finance Minister, said that the country plans to tax coal exports between 1% to 5% in 2019. This is part of a drive to increase revenue for the state. According to data from the mining ministry, Indonesia was a major thermal coal exporter in 2013, with shipments of 555 millions metric tons. This is two-thirds of the total 836 million tonnes of production. Purbaya did not provide any further details on the implementation. He had said that coal export taxes could generate 20 trillion rupiah ($1.2billion) in revenue next year. Gita Mahayarani, executive director of the Indonesia Coal Miners Association, said that they hope there will be a threshold price for duties. She said: "We believe that this approach will allow the government to achieve its goal of increasing revenue while also ensuring the industry is not burdened with excessive costs, thereby maintaining operational sustainability." Exports of coal have been affected by the slower demand in China, a major buyer. Exports between January and October were down by 4% on an annual basis at 320.47 millions tons.
Simandou aims to leverage global high-grade ore with Guinea's launch
Guinea wants to maintain high prices on premium iron ore, according to senior officials, as the giant Simandou Project, which is expected to reach a peak of 120 million metric tonnes per year, enters the market in this month.
This may cause a conflict with China, the main customer and owner of the mine, who has taken steps to centralize imports in order to drive down prices.
Simandou has 75% Chinese ownership, which means that three quarters of the company's output will be shipped to China.
Bouna Sylla, Guinea's Mines Minister, said in Conakry that "our main interest is to maintain high prices." He did not give any details but said that Conakry would tap Rio Tinto expertise.
The ownership of Simandou has been split between a Singaporean consortium and a Chinese consortium, WCS. WCS is owned by Chinese state-owned Baowu, which also has indirect ownership in Rio's joint venture Simfer.
This week, iron ore prices fell to their lowest level since the beginning of July as fears about China's demand and swollen inventories dampened prices. The prices also highlighted fragile fundamentals despite temporary support from supply problems.
GUINEA TAKES ON THE GREEN STAINLESS MARKET
Sylla stated that Guinea is looking to bypass China by selling its high-grade Simandou iron ore to Europe and the Middle East.
Simandou ore with a 65% iron grade targets the premium segment for green steels that are less carbon intensive.
Erik Hedborg is the head of raw materials at CRU Group, a metals consultancy. He said that Guinea will receive 15% of the total output of each of Simandou’s two mining blocks. This gives it a rare advantage in a market for green, sustainable steel, which is dominated by Australia, and Brazil.
Rio Tinto, which operates the blocks 3 and 4, will be in direct competition with Brazil’s Vale.
"In Australia, there is no premium." This gives Rio the chance to sell both Pilbara's 62-grade ore and Simandou premium ore to European steel mills, and possibly the Middle East for green steel.
Rio has stated that it will not comment on any commercial issues. Vale didn't immediately respond to an inquiry for comment.
Hay suggested that one way Guinea could possibly increase prices is by working with other major producers to manage their collective export rate.
Hay explained that Guinea's pricing strength is somewhat diminished because China is the primary target market for Simandou ore.
"Simandou ore will almost certainly be shipped by Chinese ships, and it represents only 1% of seaborne trade that is dominated primarily by China."
Hedborg said that China will continue to rely heavily on Australia and Brazil. However, Simandou’s mid-cost product is competitive enough for it to replace more expensive supply and change the market dynamics.
The Simandou Project has been delayed for decades
Simandou's production, which was originally planned for 1997, is now years behind schedule. Guinea's ruling party ordered that development be stopped in 2022. It said it wanted to clarify how the interests of Guinea would be protected.
Guinea holds 15% of the mines, infrastructure and future steel plants in this $20 billion project.
Officials claim that this model of co-development reduces costs and provides long-term revenue to the state.
Guinea will also build pellet and direct-reduced iron plants in Europe and America to meet the demand for green steel. By leveraging its close proximity, it can reduce costs.
Djiba Dikite, Guinea's chief staff said: "Simandou's not just a mine project. It's a geopolitical tool and an economic one." "We are pro-African, defending Guinean interests." Maxwell Akalaare Adombila, Veronica Brown and Jan Harvey (Reporting)
(source: Reuters)