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Antofagasta will seek environmental approval in the fourth quarter for Encierro Volcanes exploration
Antofagasta, a Chilean copper miner, plans to submit environmental applications in the fourth quarter to expand its exploration activities for?its Encierro and Volcanes project. This move would be a significant step forward in two of Antofagasta’s long-term growth options for copper, as major miner race to replenish pipelines, while grappling with difficult permitting processes, water restrictions and aging deposits, especially in Chile, the top copper producer. Encierro is a joint venture between Barrick Mining and a copper mine in northern Atacama that contains gold and molybdenum. Volcanes, a separate copper-mining project located in the mining-heavy Antofagasta area, is partially controlled by Chile’s wealthy Luksic Family. According to an April document, Antofagasta has allocated $60 million? for the Volcanes Exploration, and $95 million? for Encierro. The document shows two projects in the same time frame, with the entry of environmental impact declarations into the?environmental review system (DIA) during the fourth quarter. A previous application for 'Encierro' was closed in 2024 because?regulators found it lacking essential information including protected birdlife within the project area. The miner didn't immediately respond to an inquiry for comment. According to Antofagasta, Encierro has about 3.4 million tons of copper, and Volcanes contains about 9.5 millions tons. However, these figures are based on estimated copper in ground, not recoverable output. Cristian Cifuentes is an analyst at the Center for Copper and Mining Studies. He said: "It seems that they are taking advantage of (the good) copper prices to progress their relatively unexplored, greenfield projects." The copper?prices are up sharply over the last few years. On Wednesday, the LME cash rate was at $13,170 per metric ton, an increase of 58% compared to $8,355 in early July 2023. Antofagasta already manages a heavy workload in its operating mines. It also juggles other expansion?and mine-life-extension projects. The company is carrying out major upgrades at its Centinela mine - which was 78% completed as of April. It also has its flagship Los Pelambres Mine, where the two mines produced 535,700 metric tons of copper last year. Antofagasta highlighted the challenges that will be faced this year in obtaining permits for plans to invest over $900 million to Zaldivar, to extend mine life and to replace continental water with treated wastewater beginning in 2028. (Reporting and editing by Stephen Coates; Additional reporting by Daina-Beth Solomon; Reporting by Kylie Madry)
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Global stocks climb as US jobs data cools Fed hike fears
Global stocks rose on Friday, after a lukewarm U.S. employment report tempered expectations of an imminent rate hike by the Federal Reserve. Europe's "broadest" index hit a new record on Friday and was poised to make its largest weekly gain in more than a month. The pan-European STOXX600 reached 651.77, before stabilizing at 648.74. The DAX in Germany rose by 0.1%, while the French and UK indices fell a little on the day. The broadest MSCI index of world stocks rose by 0.4%. Dan Coatsworth of investment platform AJ Bell said in a report that "Europe's Stoxx 600 finished the week with a scream as investors snatched up utilities, basic materials and industrials stocks." He added that "while these movements indicate a more optimistic investor, it is important to continue watching the U.S. technology stocks as many of them are starting to cool off." South Korea's Kospi fluctuated between gains and losses, before closing at around 6% higher as buyers took advantage of battered chips maker stocks. The Purchasing Managers' Index data released Friday showed increased?activity throughout Asia. After stagnating the month before, Japan's service sector resumed expansion in June. China's service sector expanded at a slower rate, but the overseas demand grew at its fastest pace in 20 months. Capital Economics analysts said that the Chinese data showed "the PMIs are still healthy and imply a stronger economic pace across Q2". U.S. LABOUR MARKET COOLING According to the data released Thursday, U.S.?job growth slowed dramatically in June, and payroll gains from the two previous months were revised downward, indicating a cooling labour markets. As workers left the workforce, the unemployment rate fell to 4.2% from 4.3% last month. The participation rate also dropped to its lowest level since more than five months. The lackluster jobs data dampened traders' expectations for an imminent rate increase and increased the likelihood that the Fed would keep rates on hold till October. Fed funds futures price an implied 46.8% probability the U.S. Central Bank will maintain rates at its September 15-16 meeting, compared to 35.8% a day before. This is according to CME Group's FedWatch. Inflation remains a major concern. James Rossiter is the head of global economy at TD Securities. He said that shipping was "our biggest?anticipated" risk for this year. This includes even the Iran War. He said in a telephone call that "ships have been rerouted around the world due to the Hormuz Strait closing, resulting in less shipping capacity worldwide." The price effects were still being felt by the global economy. U.S. Futures remain buoyant. S&P 500 futures and Nasdaq were up respectively 0.3% and 1.0%. The U.S. stock market will be closed on Friday in celebration of Independence Day. The U.S. Dollar held steady at 161 yens, with the greenback giving up gains made earlier as the market liquidity thinned out due to the holiday and traders were on the lookout for any intervention. This week, the Japanese?currency was choppy after it was reported that authorities may have taken a different approach to their forays on the market. The U.S. Dollar Index, which measures greenback strength in relation to a basket six currencies, fell 0.3%, closing at 100.71. In commodities, Brent crude futures steadied at $71.80. Gold rose 1.3% to $4,176. Bitcoin's value increased by 0.1%, to $61,604.53. (Reporting and editing by Thomas Derpinghaus, Jan Harvey and Nell Mackenzie; Reporting by Gregor Stuart Hunter and Nell Mackenzie)
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Swiss glaciers quickly lose their protective snow cover in punishing European heatwave
Scientists say that the Alps are in for another year of heavy ice losses as the snow on Swiss glaciers has disappeared weeks earlier than normal this summer. Researchers claim that the Rhone Glacier, in southern Switzerland, reached "Glacier Loss Day", on June 29. This is the day when the snow accumulated over the winter melts and the glaciers start to shed the ice beneath. Matthias Huss, the director of Glacier Monitoring Switzerland said that three months remain this year to melt ice that took decades or even generations to build up. "This is a very worrying situation," said he. BATTER GLACIERS FOR HEATWAVES OR SCANT SNOWFALL Two heatwaves that followed a low winter and snowfall accelerated "Glacier Loss Day", bringing it to the second-earliest date in history. In 2022 it was three days earlier. Huss stated that during the June heatwave in Switzerland, melting glaciers could have filled a swimming pool of Olympic size every six seconds, for two weeks. Huss stated that the glaciers were "in a very poor state" at this time of year. "We're almost at the same level of criticality as in 2022, when we set a record. Huss reported that one monitoring station at the Rhone?Glacier had recorded a?loss? of approximately 1.5 metres (5 feet), of ice, during two weeks extreme heat. The naked eye can see the world. Visitors to the glacier retreats have said that it is impossible to ignore. Harry Block, a German tourist who has visited the Rhone glacier for over 50 years, was 'emotional' at their sight. "I can cry," said he, as he described how the glacier that was once 80 meters high has shrunk. "You can see the climate change here. "This is climate change." This is climate change."
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Sources say that some Japanese buyers have agreed to a premium of $395/t for aluminium in the third quarter.
Two sources involved in the price talks confirmed that some Japanese aluminium buyers agreed to pay global producers a premium of $395 per ton over benchmark prices for July-September shipments. This is an increase of 12-13% compared to the previous quarter. The talks with other buyers continue. Initially, producers had demanded higher premiums. The agreement, which is a 3rd consecutive quarterly rise, and the highest premium since January-March 2015 when it reached $425 per tonne, represents a $350-$353 increase per ton in April-June. Japan is one of the major Asian importers of light metals. The premiums that it pays for primary metal shipments, over and above the London Metal Exchange's cash price, serve as a benchmark in the region. GLOBAL PRODUCERS INITIALLY PUSHED FOR HIGHER PREMIUMS Sources said that Global producers initially requested premiums between $460 and $480 per ton in late May for shipments from July to September. This was an increase of 30%-37% over the previous quarter. However, they gradually reduced their offers throughout the negotiations, before agreeing on the $395 price. Source at a Japanese Trading House: "With European Premiums Softening Last Month and U.S.Iran ceasefire Talks Making Progress, Concerns over Supply Shortages have Eased A Little, Leading Producers to Compromise." Due to the sensitive nature of the issue, the sources refused to identify themselves. The Middle East is responsible for around 9% of the global?aluminum supply. And the war has shook the market, effectively freezing shipments through the Strait of Hormuz. In 2025, Japan will import nearly 30% of all its aluminum ingots, both primary and alloyed, from the Middle East. Two Gulf smelters were directly hit by missile strikes. Emirates Global Aluminium announced on Thursday that it was restoring production earlier than expected at its Al Taweelah Complex, one of the largest aluminium manufacturing sites in the world, following damage caused by Iranian missile attacks in March. Reporting by Yuka obayashi in Tokyo, Amy Lv and Jan Harvey in Beijing. Editing by Christopher Cushing & Jan Harvey.
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China will cut retail prices of gasoline and diesel to levels similar to those before the war
China will lower its domestic retail prices of gasoline and diesel starting Saturday. This is due to a drop in oil prices internationally, as the?Iran-U.S. Peace talks have eased concerns about a disruption of supply through?the Strait of Hormuz. This reduction follows two cuts made in a single month to the official price cap, which determines the maximum retail price. This is the biggest drop in China's fuel prices since more than six-years. Retail?fuel costs are now less than 2% higher than they were before U.S. and Israeli airstrikes started the?Iran War at the end February. In a notice, the National Development and Reform Commission announced that gasoline and diesel prices would be reduced by 950 yuan ($140.10) and 900 yuan (?915 per metric ton) respectively. The new prices will be 8,175 and 7,170 per metric ton. Brent and WTI international benchmark oil futures contracts also reached their lowest levels since before the U.S./Israeli war against Iran. The NDRC adjusts the retail prices of gasoline and diesel every 10 days. The NDRC's rate is based on changes in crude oil prices, and includes average processing costs, taxes, distributor expenses, and appropriate profit margins. The war has led to high oil prices, which have affected demand in China. China's oil exports dropped 29% in May compared to last year, the lowest in eight years. Fuel demand - including gasoline - was estimated to have dropped by 20%. This is similar to a slump that occurred at the height of the COVID pandemic. Sinopec, one of China's biggest state oil companies, expects the national demand for gasoline and diesel to drop by 10% in the second and third quarters. Meanwhile, commodity market intelligence provider, S&P Global, expects a similar decline in second quarter.
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Gold gains for the week as US job data weakens rate-hike betting
Gold rose on Friday, and was expected to gain a weekly profit after four weeks of losses. This is because weaker U.S. job data has reduced expectations that the Federal Reserve will increase rates in the near future. Gold spot was up 1.5% to $4,184.75 an ounce at 0835 GMT after reaching its highest level since June 23. Bullion was above the 21-day moving average, and up 2.4% this week. U.S. Gold Futures for August Delivery gained 1.73%, to $4197.20. Han Tan, chief analyst at Bybit, explained that the gold price rise is due to the sharp slowdown in U.S. employment last month. The immediate reaction seems justified for now as markets reduce bets on a rate hike by the?Fed in September. Data released on Thursday showed that U.S. nonfarm payrolls increased by 57,000 in the last month. This was below the 110,000 economists had predicted. According to CME FedWatch, traders now expect a rate hike in September of about 54%, down from 66% prior to the release of the data. Low interest rates can reduce the cost of holding non-yielding investments like gold. Holders of other currencies can now afford to buy greenback-priced gold. World Gold Council data released on Thursday shows that central banks added a total of?41 metric tonnes to their gold reserves in May. Tan said that central banks will continue to be a pillar of demand for spot prices in the long term, despite recent sales by some to protect their currencies. Gold demand in India slowed this week as prices recovered, and buying interest in China increased slightly. Silver spot rose by 2.8%, to $62.7 an ounce. Platinum gained 2.9%, to $1662.66, while palladium gained 1.2%, to $1280.75. All three metals are on track to make weekly gains. (Reporting by Sumit Saha in Bengaluru; Editing by Subhranshu Sahu)
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Heatwave causes at least 3,700 deaths in France, Belgium, and Netherlands
The heatwave in June that sent temperatures soaring across Europe has'recorded 3700 deaths over the normal number. Authorities have warned that the figures are preliminary, and may rise. Experts say that the heatwave which lasted between June 20 and 28 was the worst ever recorded in Europe. It caused disruptions to the power generation system, damaged infrastructure, and overwhelmed the healthcare systems. Scientists said that climate change was most likely to blame for the extreme heat. Stephanie Rist, French Health Minister, told local TV on Friday that there were 2,025 excess death in France due to the heatwave. The increase was primarily among those aged 45 and older. The number of deaths at home increased by 91% between June 22-28, compared with the previous week. Deaths in nursing homes and health care facilities also rose, according to a bulletin from the public health authority. The authority warned that "Mortality... will be higher than the initial figures suggest." MORTALITY DATA - 'UNPRECEDENTED" The Belgian Health Ministry announced on Thursday that it had recorded excess mortality between June 18-29 of about 1,200 deaths. Adding, 530 of those deaths occurred amongst people 85 years and older. 180 deaths were caused by people under the age of 65. In a press release, the ministry stated that "such excess mortality during a summer heatwave was unprecedented in our country." The authorities in the Netherlands reported that the heatwave caused 480 deaths more than expected, mostly among people over the age of 80. (Reporting and editing by Makini Popper and Helen Popper; Inti Landauro and Sudip Kar Gupta)
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The weaker dollar and softer US rate hike bets have led to a rise in aluminium prices
The price of aluminium rose on Friday due to a weaker dollar, which eased concerns about an impending 'U.S. Interest rates are expected to rise following the release of softer than expected U.S. employment data. By 0700 GMT, the benchmark three-month 'aluminum on the London Metal Exchange was up by 1.05% at $3,124 per metric ton. The contract has fallen 2.3% for the week. The Shanghai Futures Exchange's most traded aluminium contract rose 1.56%, to 22,840 Yuan ($3,369.23). This is a decline of 0.7% since the beginning of the week. Market participants were closely monitoring macroeconomic conditions. Some analysts questioned announcements made this week that suggested improved aluminum?supply prospects. Citi stated in a note that the concerns about a rapid return to Middle?East supplies appeared overstated and supply will not arrive fast enough to offset growth in demand. The data indicating a "cooler" U.S. labor market has calmed the expectations for a Federal Reserve interest rate increase in the near future, giving support to industrial metals. Rate increases can reduce economic activity and metal demand. The chances of a rate increase in July have dropped to around one-third. However, an increase is expected later this year. Daniel Hynes said that the easing of concerns about monetary tightening boosted the risk appetite, and pushed metals higher. A cheaper dollar makes greenback-denominated commodities more affordable for buyers ?using other currencies. Copper prices also rose, despite recent weakness of semiconductor shares. This was after PMI data this week revealed that factory activity in China, the world's largest metal consumer, expanded for a 7th consecutive month in June. The premium?Yangshan Copper Copper rose 0.59% on the LME, while it increased 0.67% on the SHFE. Copper rose 0.59 % on the LME while it increased?0.67 %. Nickel rose by?1.51%, tin rose by 2.38%, and zinc rose?0.62%. On the SHFE, tin rose 1.5%, while nickel and lead both gained 0.74 %.
Sources say Indonesia will sign a $8 billion refineries deal with a US company amid tariffs agreement.
According to two sources with knowledge of the matter, and a presentation from the economic ministry, Danantara, Indonesia's sovereign wealth fund, plans to sign a $8 billion contract with U.S. engineering company KBR Inc. to build 17 modular refining plants.
The contract was part of the trade agreement between Indonesia and the United States last week, which led to the reduction in threatened tariff rates from 32% to 19%.
Airlangga Hartarto of Indonesia, who is the chief negotiator for the deal, revealed the modular refinery design during a briefing held behind closed doors on Monday night with Indonesian business leaders. Two sources confirmed that the deal was discussed in a presentation.
Danantara, formerly Kellogg Brown & Root Inc., and KBR Inc. did not immediately reply to requests for comments.
The proposed refinery contract has never been reported before, even though some details have been released, including the increased energy cooperation. Reporting by Stefanno Sulaiman, Dewi Kurniawati and Gibran Peshimam. Editing by Stephen Coates.
(source: Reuters)