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Official: White House to continue 'historic' deals with mining sector
A senior official revealed on Monday that the Trump administration is planning to make more "historical deals" with U.S. mines in order to increase?production and supply of minerals critical for national defense, high-tech, and other sectors. The administration acquired equity stakes earlier this year in MP Materials Lithium Americas, and Trilogy Metals. These transactions were made as part of President Donald Trump’s efforts to increase domestic production and use of minerals for the national defense. Jarrod Agen is executive director of White House National Energy Dominance Council. He said that the U.S. should be able to control its own destiny, especially when it comes to the supply chain and critical minerals. "We have set a good pace, but it is only the first year." Korea Zinc announced on Monday that it would build the first U.S. mineral refinery in many years with Washington's financial assistance. Agen said at a conference on critical'minerals' hosted by the Center of Strategic and International Studies (CSIS) in Washington D.C., "You will see historic deals in the area of critical minerals throughout this administration, as well as historic partnerships with private sector companies, which will lead to a real revitalization in mining in the United States." The remarks were broadcast on the web. Agen, a former employee of?defense contractor Lockheed Martin who has held various roles, stated that Trump wants to "jumpstart' mining projects in Alaska as well as in Arizona where Rio Tinto BHP plan to build the largest copper mine in the world.
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Gold prices rise on expectations of rate cuts and a weaker dollar ahead of US employment data
Spot gold hovered near a seven-week high on Monday, buoyed by a weaker dollar and expectations of U.S. rate cuts before the release of important jobs data. Silver held below its record high set on Friday. By 10:21 am, spot gold had risen 0.4% to $4.321.25 per ounce. ET (1521 GMT), following a rise of more than 1% in the earlier session. U.S. Gold Futures increased?0.6% at $4,352.90 per ounce. Dollars are nearing a two-month-low, which makes greenback-priced gold?more appealing for overseas buyers. Tomorrow, the U.S. Non-Farm Payrolls Report and Retail Data will be released. Traders will examine these data to get a better idea of Federal Reserve policy. Bob Haberkorn, senior market strategist at RJO Futures, said that traders are attempting to get ahead of the Fed. They expect the data to be better than expected and the Fed will be more likely to continue to cut rates. In a low-interest rate environment, gold, which is a nonyielding investment, thrives. Last week, the Fed delivered its third and final quarter-percentage-point rate cut of the year, while signaling a pause on further easing until more data emerges. According to CME FedWatch Tool, the markets are pricing in two rate cuts next year with a 73% probability of a move by January 2026. Spot silver increased 2.6% to $63.64 after hitting a record high of $64.65 last Friday. It is still within striking distance of the historic $65/oz mark. The metal has grown 120% in the past year. Silver is the most popular precious metal. Haberkorn said that by the end of this year, silver will be trading at $65 or more. He added that he could even see $70 as early as quarter one of next year. Spot platinum rose 2.8% to $1.793.69 and reached its highest level since Sept.?2011. Palladium also hit a new two-month high with a 5.2% increase to $1.564.25 an ounce. Nornickel, world's biggest palladium producer said in a review of the metals market that the palladium industry could experience a deficit this year, including investment demand.
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India's proposed landmark nuclear law would end the state monopoly on nuclear power and allow private sector operators
India took steps on Monday to end decades-long state control of nuclear power by introducing a bill into parliament that would allow for private companies to 'build and operate' plants. The government is aiming to make atomic energy central to its push to promote clean energy. If the government selects foreign companies to form a joint venture, they can apply for a license. Since 1969, when India's first reactor was put online, the sector has been closely guarded. This is due to Cold War politics and restrictions on fuel technology after its 1974 test. The state-run Nuclear Power Corporation of India Ltd (NPCIL), which owns and operates India’s current nuclear power plants, reported last year that India was looking to invite domestic private companies such as Tata Power Adani Power and Reliance Industries?to invest around $26 billion?into the sector. The new bill must be approved by both the lower and upper houses of the parliament in order to become law. It would allow anyone "expressly allowed by the central government to apply for a license to enter the nuclear industry". This is a significant change from the past, when only state-owned companies were able to operate reactors. In the next 20 years, the world's third largest emitter of greenhouse gases plans to increase nuclear power to 100 gigawatts. This is more than 12 times its current capacity of 8.2 GW. The Sustainable Harnessing and Advancement of Nuclear Power for Transforming India Bill, 2025, eliminates a rule that allowed operators to sue their suppliers for defective equipment, something foreign suppliers have been against for years. General Electric Co., Westinghouse Electric Co. and France's EDF are all foreign suppliers. The bill retains compensation caps at the previous levels, doubles operator liability for large reactors up to 30 billion rupees (US$330.75m), and proposes an accident fund in line with international norms. According to the bill, private firms will be allowed import and process Uranium. The government will continue to control strategic activities like uranium mines, nuclear fuel enrichment, and fuel reprocessing. All operators must have licenses. $1 = 90.7020 Indian Rupees (Reporting and editing by Susan Fenton; Sarita Chaganti, Singh)
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Minister: JSW in Poland needs more than $830 million just to stay afloat.
The state assets minister said on Monday that the Polish coking coal company JSW needed 3 billion zlotys (US$834 million) in liquidity to continue operating next year. JSW, Europe's largest coking coal producer, is impacted by falling prices and rising wages. It has developed a restructuring strategy. Jakub Skopek, an analyst at Erste, estimates that the plan will save millions of zlotys in wages. The state-controlled firm?has already reduced investments?and used almost all of its Rainy Day Fund, which has shrunk in size from 5 billion zlotys by the end of 2022 down to 100 million zlotys around October. JSW posted a net loss of 796.3 millions zlotys in the third quarter. This is a significant increase from 315.3 million zlotys a year ago. The restructuring plan for JSW has been completed. Wojciech Balczun, a reporter at the company, said that they are in intensive negotiations to secure financing on the international market. "Market responsiveness?is high. We are also negotiating with the Restructuring Fund for a loan. JSW requires almost 3 billion zlotys in order to maintain its liquidity over the next 12 months."
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Rusal wins $1.32 billion in lawsuit against Rio Tinto in Russian court
A Russian court has ?ruled in favour of Rusal in the aluminium giant's 104.75-billion-rouble ($1.32 ?billion) ?lawsuit against global mining and metals company Rio Tinto , according to court documents. The ruling intensifies the legal battle over an alumina joint refinery in Queensland (Australia) that Rio has sole control over after Australia imposed sanctions against Russia for its war in Ukraine. Details of the lawsuit have not been revealed. Rusal refused to comment. Rio Tinto wasn't immediately available. RUSAL SEEKS SUPPLIES ELSEWHERE Rusal has filed a lawsuit in Australia after losing its case to restore a 20% stake at the alumina factory Queensland Alumina Ltd. (QAL) in 2024. Australia responded with sweeping sanctions to the 2022 launch by Russia of its military campaign in Ukraine, including a ban on the export of 'the raw material aluminium to Russia. Rio assumed sole control over QAL in March 2022. Rusal was then pushed out of the picture and denied access to QAL's production. Rio owns 80 percent of the refinery. Rio does not have any assets in Russia. However, among those named in Rusal’s lawsuit are?Rio subsidiary companies that own 66% the Oyu Tolgoi deposit of copper and gold in Mongolia. This is a country Moscow considers "friendly", which hasn't imposed sanctions on Russia. Rusal's Siberian aluminum smelters will need additional supplies in 2022 due to the ban on alumina from Australia and the suspension of a Ukrainian refinery. Rusal announced that it would acquire a stake of up to 50% in an alumina factory in India in?2025. Rusal also announced plans for a new 4.8 million-ton alumina plant in Russia's Leningrad Region in 2028. Rusal purchased a 30% stake of a Chinese Alumina Refinery in 2023 to provide feedstock for its assets in Russia.
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Gold rises 1% due to safe-haven demand and a weaker dollar in advance of US jobs data
Gold rose 1% Monday, hovering near a seven-week high. Supported by a weaker?dollar, expectations of?rate?cuts, and safe-haven purchases due to geopolitical?tensions, silver also gained, but held below the record high set on Friday. Gold spot gained 0.9%, to $4,338.29 per ounce, by 1322 GMT. It had risen more than 1% in the previous session. Bullion reached its highest level since October 21 last Friday. U.S. gold futures rose 1% to $4.372.80 per ounce. Dollars hovered around a two-month-low reached last week. This made gold priced in greenbacks more affordable to overseas buyers. The benchmark 10-year U.S. Treasury rates also declined. Gold is supported by "stronger demand from 'investors, and three months solid central bank demand (as) investors start to anticipate even lower interest rates in 2026", said UBS analyst Giovanni Staunovo. Last?week, the U.S. Federal Reserve delivered a 25 basis-point rate cut in a divided vote. Further easing is dependent on inflation and the labor market. Investors are watching this week's U.S. Nonfarm Payrolls Report for more clues about monetary policy. Gold and other non-yielding investments benefit from a low interest rate environment. The Russian central bank has said that the European Union's plans to use Russian assets as collateral to lend money to Ukraine are illegal. It also stated that the Russian central bank reserves the right to protect its own interests by using all the available means. Spot silver increased 3.1%, to $63.9 an ounce. It reached a record of $64.65 before closing sharply lower. Metal prices have risen 121% in this year due to tightening supply and inclusion on the U.S. Critical Minerals List. Silver benefits from the same factors that support investment demand for Gold (i.e. Lower rates, but also benefit from stronger industrial demands due to monetary and fiscal stimuli measures," Staunovo stated. Palladium rose 4.1%, to $1.547.75 an ounce, and spot platinum increased 1.9%, to $1.778.76 per ounce.
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Key data: Shares stable in the week following big central bank decisions
European shares rose on Monday, as Wall Street futures indicated a recovery after last week's sell-off. However, investor caution limited gains at the beginning of a week that will be dominated by important central bank decisions and economic reports. The benchmark STOXX index of 600 large European companies rose 0.8%. S&P 500 futures rose 0.5% after U.S. shares had fallen on Friday due to concerns about a bubble in artificial-intelligence stocks and lingering inflation. Asia shares have been less buoyant due to renewed concerns in China's real estate market. MSCI's broadest Asia-Pacific share index outside Japan fell 1.2%. This was led by a fall of up to 2.7% on South Korean shares. South Korea is one of the best-performing markets in the world this year. Marc Velan is the head of investments for Lucerne Asset Management, based in Singapore. He said that "the risk-off tone in Asia appears to be more a spillover effect from last Friday's sale in U.S. tech and momentum than a regional catalyst." The unwinding of the AI-capex trade has weighed down on global risk appetite. And?in thin liquidity at year's end, these moves tend to spread quickly across regions." The yield on the U.S. Treasury 10-year bond last fell 3 basis points to 4.1626%, as investors awaited economic data releases and central bank decisions. CHINA PROPERTY WORRIES The U.S. Dollar slipped by 0.1% against the Chinese Yuan traded offshore to reach 7.0486 yuan. This is the highest level it has been in over a year. Factory?output data and retail sales figures slowed down further in November. The official data released on Monday showed that the new home prices continued to decline in November. This indicates that the recovery of demand is still elusive, despite government promises to stabilize the sector. China Vanke announced that it would convene a second meeting of bondholders after the state-backed developer failed to obtain bondholder approval for an extension by one year to a bond payment due on Monday. This increased the risk of default and renewed concerns about the crisis hit property sector. Jeff Zhang, Morningstar's equity analyst, said: "If Vanke ultimately defaults, the ramifications for the China property market can be significant." Investors are more likely to be concerned with the government's attitude toward bailouts, even for'safe' names. CENTRAL BANK LOOM DECISIONS The Bank of Japan, among the central banks that will make decisions this week is expected to increase rates by 25 basis point to 0.75%. Meanwhile, the Bank of England could cut rates to 3.75%. Along with Sweden's Riksbank, and Norway's Norges Bank, the European Central Bank will likely hold interest rates. Investors can also catch up with economic data delayed by the U.S. shutdown. This includes the November jobs report and the consumer price index. Ben Bennett, the head of investment strategy Asia for L&G Asset Management based in Hong Kong said: "It is worth treating this week's numbers with a grain of salt due to the difficulties of collecting data and the direct impact of the shutdown on the economy." We'll need to wait until the year 2026 before we can get a better idea of how the U.S. economy is doing." economy." Stocks in Japan gained support on Monday after the BOJ’s closely-watched "tankan” survey revealed that the business sentiment of large?manufacturers had reached a four year high. This indicated the economy could be weathering the impact of higher U.S. Tariffs. The kiwi currency fell 0.4% to $0.5781 following comments by New Zealand's central bank governor Anna Breman, who warned that financial market conditions have tightened over the past few weeks. This has led investors to reduce their expectations of rate hikes next year. Oil prices have been stable in commodities as investors balance supply disruptions due to escalating U.S. - Venezuelan tensions, oversupply fears and the potential impact of a Russia-Ukraine Peace Deal. Brent crude futures At 1240 GMT the price of U.S. West Texas intermediate crude oil was down 0.52% to $60.79 per barrel. The price of oil was $57.1 per barrel, a 0.6% decrease. Imperial Oil announced on Sunday that it had sent out a?fire alert at its 120,000 barrels per day refinery facility located in Ontario, Canada. Russia, meanwhile, said that a Ukrainian drone did not damage an oil refinery located in Afipsky. Steve Witkoff, the U.S. ambassador to Berlin said that "a lot of advances were made" on the geopolitical side in the peace talks in Berlin to end the Ukraine conflict. Gold's recent rally has now entered its fifth day, as it nears a record high price of $4381.21. Spot bullion was last up 1% to $4,344 Cryptocurrency prices snapped a 3-day losing streak with bitcoin up 1.4% to $89,711 and ether up 2.2% at $3,151. (Reporting and editing by Gregor Stuart Hunter, Sam Holmes, Louise Heavens, Chizu Nomiyama, and Shri Navaratnam)
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India changes the name of Mahatma Ghandi's rural employment scheme
India presented legislation that would expand a rural employment program dating back 20 years by increasing the number of?guaranteed workdays. However, opposition leaders questioned plans to remove the name of independence hero Mahatma?Gandhi from the programme. In its listing in parliament, the government of Prime Minister Narendra modi said that the bill would guarantee 125 days of employment per year for manual workers who are not skilled. The current fiscal year, which ends on March 31st 2026, will see 860 billion rupees (9.5 billion dollars) allocated to the scheme. In a notification to the parliament, the government said that the change was made to align the scheme with the goal of making India a developed country by 2047 - the centenary year of independence from Britain. A government source said that the bill is aimed at creating jobs through infrastructure development in rural roads and water supply, as well as measures to reduce the impact of extreme weather. According to the source, the government has changed the way it funds the scheme from an open-ended expenditure based on the demand for jobs related to the scheme to expenditures that are geared towards budget projections. The bill proposes to change the name of the program from Mahatma-Gandhi National Rural Employment-Guarantee Scheme (MNREGA), to Guarantee for Livelihood and Employment Mission – Rural (Guarantee For Rozgar And Ajeevika Mission – Rural). Why is Mahatma's Gandhi name being removed?" Mahatma is regarded as the most revered leader not only in India but around the world. So removing his name is a question I don't really understand. What is the intention? Priyanka Vadra, leader of the opposition Congress party, said: The rural employment programme, launched in 2005 by the Congress party, India's opposition, was named after Gandhi. Gandhi was an independence activist and a proponent of non-violence, who was murdered by a Hindu nationalist in 1949. Analysts claim Gandhi's association to the Congress made the rural programme a symbol of the political legacy. The Modi government, on the other hand, has tried to promote figures and narratives that are aligned with the Hindu nationalist base. Reporting by Saurabh Ohri and Nikunj Sharma; editing by Mark Heinrich
Pirelli bondholders to decide on conversion which could dilute shareholder's stakes
Holders of Pirelli's 500 million euro (582 million dollar)?bond? will decide on Monday if they want to convert the bond into shares. This could dilute the stakes that the existing investors hold in the group, who are fighting over the Italian tiremaker's governance.
Sinochem, the Chinese state-owned company, and Marco Tronchetti Provera, an Italian businessman, both owning Camfin, have been at odds with each other in recent years. Camfin has complained that Sinochem's share is preventing the group from expanding into America.
The tiremaker issued a five-year, no-coupon convertible bond at the end 2020. The bond is due to expire this December 22, but holders can convert it into shares up until December 15, at a price of 6.87 euros per share.
By 1020 GMT, Pirelli shares were up 1.4% to 6.03 euros. This was above the conversion rate.
Two banking sources, one of whom is a bond expert, said that these bonds can be converted to the full amount or almost to the full amount, since they enable shares to purchased at a lower price than market value.
The bond, if converted to its full value, would create 85.48 millions new Pirelli shares in addition to the 1 billion currently existing shares. The stakes of existing Pirelli shareholders will be diluted.
Sinochem and Camfin declined to comment on the matter, including whether or not they hold convertible bonds issued by Pirelli.
Two sources said that if they don't, Sinochem could lose as much as 2 percentage points of its current 27.4% and Camfin could lose as much as 34.1%.
Camfin's board has authorized it to increase its share in Pirelli to 29,9% by next October.
Pirelli will announce the results of its?bond conversion procedure later this week.
Holders of bonds who do not convert their bonds when the market value is higher than the conversion rate will not receive any return over the life of the bond.
(source: Reuters)