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China Minmetals unit bids for Australian miner to target global potash assets
Yankuang Energy, a coal miner owned by China Minmetals, announced on Monday that a unit of the state-owned company plans to invest $300m to purchase Australian potash miner Highfield Resources. The aim is to expand into potash projects across Canada and Spain. Highfield Resources announced in September that it would raise $220 from Yankuang Energy, among other parties. This deal would make the Chinese coal mining company its majority shareholder. If the agreement is completed, Qinghai Salt Lake Industry, owned by Minmetals, Yankuang and Highfield's largest shareholder EMR Capital would gain control of Highfield. Qinghai will also purchase Yankuang's Yancoal Canada operation, which includes its Southey Potash Project and Highfields' Muga Project in Spain that is ready for construction. Potash is an essential component of agricultural fertilisers and vital for food production. Qinghai Salt Lake Industry is the largest lithium and potassium producer in China. Qinghai, known for its mining operations focusing on metals such as copper and zinc, and Minmetals are developing together a lithium and potassium production center in northwest China worth 10 billion yuan (1,39 billion dollars). Yankuang's investment in Highfield was approved by Australia's Foreign Investment Review Board on April 1. Qinghai will also have to comply with this requirement if a binding deal is reached. This would include approvals for the deal from Spanish and Canadian authorities on foreign investment. Highfield Resources and Qinghai Salt Lake Industry didn't immediately respond to requests for comments.
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Oil jumps and soy increases as US-China tariffs pause brings relief
Oil prices rose more than 3% Monday, while soybeans were trading at their highest level in three months. This was after the United States paused tariffs on trade for 90 days. Two of the world's largest economies have agreed to temporarily reduce their reciprocal tariffs while they negotiate to stop a damaging trade conflict that has caused financial markets to rumble and raised fears of a recession. The U.S. is reducing the extra tariffs on Chinese imports from 145% to 30% and Chinese duties on U.S. imported goods will drop to 10% from 125%. The new tariff rates are lower than expected and return tariffs back to levels before Liberation Day. This was the day on April 2, when U.S. president Donald Trump announced a slew levies against trading partners. Brent and U.S. WTI futures have risen more than 3% following the agreement between the two world's biggest oil consumers. This is on top of gains last week of about 4%. Ole Hansen, analyst at Saxo Bank, said that crude oil was initially the biggest winner. The news helped to stabilize the demand outlook. The benchmark Dutch front-month gas contract, based on data provided by LSEG at 1229 GMT, rose to 36.18 Euros per megawatt hour or $11.79/mmBtu. This is the highest level since April 16. The U.S. soybean crop has been hit the hardest by the trade dispute, with China, the top soy importer in the world, shifting its purchases from the U.S. to Brazil, the second largest exporter. The Chicago Board of Trade’s most active soybean contract rose by 1.7% to $10.69 per bushel. This is close to the highest price since early February. Gold prices dropped to $3,207.3 per ounce, and last fell 2.85%, at $3,229.88. The price of industrial metals rose, as fears about growth and demand eased. However, traders noted that the market was still cautious. Aluminium gained 2.9%, to $2,488 per metric ton, while benchmark copper was up 0.9% at the London Metal Exchange. Callum Macpherson, Investec's head of commodities, said: "We don't know what happens after this period and whether the U.S. will be able reach a lasting deal." The longer the uncertainty continues, the more it will impact the economy. Reporting by Seher Daeden and Robert Harvey, London; Additional reporting by Nora Buli, Oslo; Brijesh Patel, Bengaluru, London; Kirby Donovan, editing.
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Sierra Leone's biggest diamond miner closes, with more than 1,000 employees laid off
Koidu Limited has stopped operations in Sierra Leone and laid off almost its entire workforce, which consists of over 1,000 local employees, following a long-running dispute about pay and working conditions. The mine workers went on strike December 2024, but they suspended the walkout in order to facilitate negotiations. The workers then went on strike again in early march. BSG Resources, the Israeli billionaire Benysteinmetz, founded the firm. Charles Kainessie is the president of the Koidu Limited Workers' Union. He said that there were only a few workers left at the head office of the company in Freetown. In a May 6 statement, the Sierra Leonean labour ministry said that it had received copies of dismissal letters summarizing more than 1,000 employees. Kainessie reported that the workers were only receiving 30% of their salary because it was pegged to the U.S. Dollar but they were paid in local currency and the company used an exchange rate for 2016. He said that workers also lacked adequate access to toilets and drinking water. Koidu Limited refused to comment on these allegations. Ibrahim Turay said that he is "restricted" from commenting on the matter for now. The closure could have an impact on global markets already experiencing supply restrictions from major producers including India. Industry sources estimate that Koidu Limited exports around $100 million. FIRST LADY Koidu accused Sierra Leone’s First Lady Fatima Bio of igniting the fires in the dispute. Fatima is from the same area as Koidu. Fatima Bio addressed workers in the area following the March walkout and criticised the firm with remarks that the company has denied as false. In a post on social media, she stated that Koidu "had been unjust to the employees for far too much time". Gustaf Fredrik Bodin is a director of Koidu Limited, and the general counsel for that company. He responded to Fatima Bi in a letter dated May 6, accusing her unlawful interference, incitement and defamation, as well as causing damage to Koidu Limited, and Octea Limited. The First Lady and her office did not respond to requests for comment on Koidu’s accusations and threats of legal action. The letter seen by said that Koidu Limited suffered financial losses of over $16 million as a result of the strike and would require $20 million in order to restart operations. Fatima bio was asked to retract her public statements and sign a document stating that she would not make any further threats towards the company. Chernor BAH, the Sierra Leone Minister of Information, said that "everything was being done" to end the impasse. Reporting by Umafu Fofana, Editing by Bate Felice, Rob Corey-Boulet, and Jan Harvey
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Trump's trade tariffs and threats
On Monday, the United States and China will meet The two sides have agreed to reduce reciprocal tariffs temporarily As the two largest economies in the world try to end their damaging trade war that has increased fears of a possible recession, and caused a U.S. economy contraction during the first quarter. The U.S. is reducing the extra tariffs that it imposed in April of this year on Chinese imports to 30%, from 145%. Chinese duties on U.S. imported goods will also fall to 10%, from 125%. The new measures will be in effect for 90 days following a meeting held between the two countries in Geneva. After a series of meetings between U.S. officials and trading partners, after Trump's April 2 tariffs of 10% on most countries were suspended for 90 days as well as the suspension of higher tariffs on many other trading partners. On July 8, the duties will now be imposed. The U.S. China deal comes just days after Donald Trump and Keir starmer, the British Prime Minister, announced a limited trade agreement. This leaves Trump's 10% tariffs for British exports in place. As part of the agreement, Britain agreed to reduce its tariffs from 5.1% to 1.8% and to provide greater access to U.S. products. In recent months, Trump has imposed tariffs of 25% on steel, aluminium and autos. He also levied 25% on imports coming from Canada and Mexico. Trump's second move was to impose a tariff of 100% on films produced outside the United States that are sent into the country. Here's a summary of Trump’s trade-related actions and threats to date. BROAD TARIFFS Trump's vision is based on a gradual roll-out of tariffs that will apply to all U.S. imported goods. Trump's economic team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price. Specific COUNTRIES Trump's tariff proposal targets several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl. Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes. The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork. U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena. In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports. The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports. Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts. CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S. On March 4, he imposed another 10% tariff on Chinese products. China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs. Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products. Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated." Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result. In Geneva, both countries agreed on Monday to temporarily reduce reciprocal tariffs. The U.S. is lowering tariffs placed on China in April from 145% to 30% and Chinese duties will drop from 125% to 10%. The new measures will be in effect for 90 days. Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S. Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment. The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week. In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April. Trump announced on March 13 that he would impose a tariff of 200% on European wines and spirits as a response to EU plans to levy tariffs on American whisky and other products in the next month. BRITAIN: In May, Trump and British Prime Minster Starmer announced a limited trade agreement. The agreement leaves the 10% tariffs Trump imposed on British exports in place and expands access to agricultural products for both countries. It also lowers U.S. import duties that were prohibitive on British auto exports. Trump imposed reciprocal tariffs of up to 50% in April on goods from 57 trading partner countries, including the European Union. He then paused them a few days later to give time for negotiations to July 9. The UK and U.S. have said that this agreement lowers the average British tariff on U.S. products to 1.8%, from 5.1%. However, it keeps the 10% tariff in place on British goods. An official from the UK noted that Washington's demands for a restructuring of Britain's Digital Services Tax, which is levied as 2% of UK revenues for online marketplaces, were not included in the deal. PRODUCTS AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3. On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other materials levies. The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles. Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products, ranging from nuts and bolts, to bulldozers blades, to soda cans. More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil. Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. Just over half of the refined copper that is consumed in the U.S. each year is produced domestically. SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients. LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products. ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs which took effect on steel and aluminium imports the day before. PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before." ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers. This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.
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Sources say that US customers will be able to obtain Chinese permits for rare earths more easily following the trade truce.
After Monday's truce in the trade war, it is likely that U.S. clients will have an easier time obtaining approval for rare earth export permits from Beijing. However, a complete lifting of restrictions in China, according to sources in the industry, is unlikely. As part of its response to U.S. Tariffs, China added seven rare Earths and related products to a Control List in April. Exporters will now need to obtain licenses in order to sell outside China. The decision was made for all countries. However, it appeared unlikely that U.S. clients would receive export licenses in the midst of the trade war. Elon Musk revealed last month that Tesla was in discussions with Beijing about licenses for its Optimus robotics. According to two industry sources who requested anonymity due to the sensitive nature of rare earths and China, the truce announced Monday could result in the Ministry of Commerce expediting approvals which, in theory, take 45 days. They may even grant licenses soon for U.S. clients. One of the sources said, "We expect to see an increase in the number of export licenses issued. Exporters who have clients in the U.S. may get one soon." They added that China was unlikely to lift the export controls as they were part of a larger package of measures to give Beijing more control over critical minerals in which it dominates mining and processing. China, which is the largest supplier of strategic minerals in the world, has begun to restrict exports from 2023 of minerals that are vital for sectors such as chipmaking, energy transition, and defence. The United States imports the majority of its rare Earths from China and faces the threat of losing the minerals essential to the defence sector and other high-tech industries.
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Russell: China's rebound in crude oil imports has more of a bearish tone than a bullish one.
China's crude oil imports have been positive for the first few months of this year. However, rather than being a sign that fuel demand is improving, the improvement has more to do with rising inventories. Customs data released Friday show that the world's largest crude importer, Saudi Arabia, recorded an average of 11,69 million barrels a day in April. This is down from March's 12,1 million bpd, but up 7.5% from the 10,88 million bpd for the same period last year. The imports in March were the highest since August 2023, and April's relatively strong performance brought the arrivals of the first four month to 11,83 million bpd. This is up 0.5% compared to the same period last year. The strength of imports in April and March was largely due to the availability discounted cargoes coming from Iran and Russia. Both countries are now under new US sanctions. According to commodity analysts Kpler, China's seaborne exports to Russia in April were 1,38 million bpd and in March they were 1,22 million bpd, the two strongest months since 1.51 million in October of last year. Kpler estimated that imports from Iran fell to 743,000 barrels per day (bpd) in April. This was down from 1,39 million barrels per day in March which was the highest monthly figure since October. Imports from Iran were likely under pressure in April as the U.S. administration of President Donald Trump increased pressure on Tehran to curtail its nuclear program. Last week, it was reported that sanctions imposed on two Chinese refiners in March andApril for purchasing Iranian crude had led to problems in sourcing oil. This is because the companies Shandong Shouguang Luqing Petrochemical (SSH) and Shandong Shengxing Chemical were unable to source oil. The sanctions against the smaller operators have also deterred the larger independent refiners to buy Iranian barrels. This has led to the fall in imports for April. How long will Chinese buyers be wary about buying Iranian oil? Or, to put it another way, will they find ways to get around the latest sanctions to resume importing from Tehran? China's imports of Russian crude dropped sharply in January after new sanctions were imposed by the departing administration of former U.S. president Joe Biden against vessels transporting Russian crude. Kpler estimated that China's seaborne exports to Russia fell to their lowest level in 26 months during February. Since then, they have recovered as refiners worked around U.S. restrictions. STORAGE FLOWS Understanding why refiners buy more oil from Russia or Iran is important. As Chinese refiners try to take advantage of the discounted prices, they are likely to store the increased quantities in commercial or strategic warehouses. At the same time, they are concerned that the United States will likely increase sanctions on the Russian and Iranian oil flows. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate of surplus crude can be calculated by subtracting the amount processed from the total crude available through imports and domestic production. According to calculations based upon official data, China's crude surplus in March was 1.74 million barrels a day (bpd), the highest since June 2023. In the first two month of the year oil imports were low due to the high prices at the time of cargo arrangements. This led to the swing in March from a shortage of crude oil available. Analysts Vortexa say that the average increase in inventories in the five-week period ending May 4 was over 1.1 million bpd. China's continued purchases of crude oil to build up its inventory is a question that arises as global crude prices are under pressure due to increased OPEC+ production and global demand concerns sparked by Trump’s trade war. The deteriorating economy may make refiners more cautious, given that periods of low oil prices tend to lead to higher imports. These are the views of the columnist, an author for.
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NRG Energy invests $12 billion in assets to meet growing demand for power
NRG Energy announced on Monday that it will acquire power generation assets in a cash and stock deal valued at 12 billion dollars from energy infrastructure investment company LS Power. The U.S. utility is banking on industrial customers to drive electricity demand throughout the country. In premarket trading, shares of NRG Energy increased by more than 6%. According to the U.S. Energy Information Administration (EIA), power consumption is expected to hit record highs by 2025 and 2026. This will be driven by the proliferation of data centres dedicated to AI, cryptocurrency, and the increasing use of electricity in homes and businesses for heating and transportation. Larry Coben, CEO of NRG, said: "We're in the beginning stages of a supercycle for power demand." NRG announced that the new assets will include a natural gas generation facility as well as an integrated virtual power plant which integrates several resources to supply power to the grid. According to NRG, the deal is expected to be completed in the first quarter 2026. It will double NRG’s generation capacity, bringing it to 25 gigawatts. The company also plans to add 18 natural gas-fired plants totaling 13 GW in key markets across the Northeast and Texas. NRG will provide $6.4 billion in cash, and $2.8 in stock to LS Power. The company will also assume $3.2 billion in net debt and receive tax benefits of around $0.4 billion. NRG stated that the acquisition would immediately increase earnings per share. The company now expects a long-term annual compound growth rate for profit per share of 14%, as opposed to its previous view of 10%. NRG's net long-term debt was $9.81 billion as of March 31.
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Tehran: Iran is getting ready for a visit by Russian President Vladimir Putin
Fatemeh Mohajerani, the Iranian government's spokesperson, was quoted as saying by Russia's official RIA news agency on Monday. Mohajerani, as quoted by RIA, said that "Putin’s trip to Tehran has been planned and preparations have begun." The Kremlin did not immediately comment. Putin met with the Supreme Leader Ayatollah Ayatollah Khamenei at the Iranian Embassy in 2022. This was the Kremlin's first visit outside of the former Soviet Union since he had sent tens and thousands of troops to Ukraine on the 24th of February of that year. Although Moscow bought weapons from Iran to fight in Ukraine, and signed a strategic partnership agreement with Tehran for 20 years earlier this year. Their relationship has been tense since 16th century when Muscovy established official relations with the Persian Empire. Iranian officials claim that Moscow talks tough, but is hesitant to get dragged into major Middle East wars despite Russia’s 2015 foray in Syria. The strategic partnership agreement signed by Iran and Russia in early this year was not accompanied by a clause on mutual defense. (Reporting and editing by Andrew Osborn, Guy Faulconbridge, and Parisa hafezi. Reporting by Moscow buro.
Gulf Stock Markets extend gains following US-China Trade Agreement
The Gulf stock markets were up early Monday morning, buoyed both by the rising oil price and progress in U.S. China trade negotiations. This was a positive sign as U.S. president Donald Trump prepared to visit this region.
On Monday, the United States and China announced that they had reached an agreement to reduce reciprocal tariffs in order to end their trade war which has caused global economic disruption and shaken financial markets.
A fragile ceasefire between India and Pakistan also seemed to ease geopolitical tensions. In the meantime, Ukrainian President Volodymyr Zelenskiy declared his willingness to meet Russian president Vladimir Putin for talks in Turkey on Thursday.
The oil prices, which are the main source of income for the region and the key driver of markets, have risen on the expectation that a trade agreement will reduce the risk of an economic downturn.
Brent crude futures rose 2.63% to $65.59 per barrel at 0858 GMT.
Saudi Arabia's benchmark index rose by 1.4%. Financial sector stocks led a rise in most other sectors. Al Rajhi Bank (the kingdom's second largest lender in terms of assets) grew by more than 1%.
Saudi Aramco has reported a 2.4% increase in its first-quarter profits, despite a drop of 4.6%.
Sahara International Petrochemicals (Sipchem), which reported a net profit increase of more than 7% in the first quarter, rose by 2.9%. National Industrializations (Tasnee), on the other hand, rose by 2.3%. It posted a profit after reporting a gain of 895.8 millions riyals (US$238.84m), reversing its loss for the previous-year period.
The main index of Dubai's shares rose by 0.7% due to strong performance in the financial and real estate sectors. Emirates NBD Bank increased by nearly 1,4%, while blue chip developer Emaar Properties rose 1.5%.
Abu Dhabi's benchmark Index gained 0.5% thanks to a 1.6% increase in developer Aldar Properties.
Qatar's benchmark stock index rose 0.6% for a third straight session, while Qatar National Bank, which is the largest Gulf lender in terms of assets, gained 0.8%. ($1 = 3.7507 Riyals) (Reporting and editing by Rachna uppal in Bengaluru)
(source: Reuters)