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Ivory Coast awards 11 new mining licenses to boost exploration
Ivory Coast has announced that it has issued 11 new exploration permits for gold, copper and cobalt to both local and international mining companies. The world's largest cocoa producer is looking to attract more investment to its booming mining industry as it diversifies. Amadou Coulibaly, the government's spokesperson, announced the new permits after they had been approved by a cabinet on Wednesday. The Ivory Coast is positioning itself as an investor-friendly, stable mining destination, amid increasing regulatory uncertainty in Mali, Burkina Faso, and Niger where military juntas tighten control over mining assets. Eight gold exploration companies are included in the permits valid for four-years, including Resolute Exploration Cote d'Ivoire which is developing Doropo Gold Mine in northern Ivory Coast and Tieto mineral which operates the Abujar mine west of Abidjan, the economic capital. Three more exploration permits have been awarded in the areas of chrome, nickel, cobalt, manganese and copper. According to Mines Minister Mamadou Sangafowa Coulibaly, the gold production in Ivory Coast will increase from 10 tonnes in 2012 to more than 58 tonnes by 2024 and 62 tonnes by 2025. New mines, such as Lafigue, operated by Endeavour Mining are responsible for the increase. The government wants to reach 100 tonnes per year by 2030. According to the Professional Group of Miners of Cote d'Ivoire (a lobby group), the mining sector contributes 4% of GDP today, up from 1.5% a ten years ago. It has also attracted billions of dollars in investment. Canadian mining companies Barrick, Perseus Mining and Roxgold, as well as Fortuna Mining, operate in Ivory Coast. Coulibaly explained that the new permits are part of a strategy aimed at unlocking mineral potential, and diversifying the economy away from cocoa. (Reporting and writing by Bate Felix, Maxwell Akalaare Adombila, Editing by Robbie Corey Boulet and Elaine Hardcastle).
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Urenco receives US approval to enrich nuclear fuel at higher levels
Urenco USA announced on Thursday that it had received approval from the U.S. Nuclear Power regulator to enrich nuclear fuel to a maximum of 10% fissionable Uranium. This can be used for conventional reactors today and in many newer plants which could be developed within years. Urenco, an English, Dutch and German company with operations in New Mexico said that the new fuel is enriched to 10%, as opposed to the current fuel's 5% enrichment. It's called low-enriched uranium-plus, or LEU+. Why it's important Urenco stated that the fuel could enable longer operating cycles for today's light-water reactors, with fewer refueling interruptions, which could lower maintenance and operation costs. LEU+ can also be used as a feedstock in the United States to produce HALEU (high assay, low-enriched uranium), which will fuel new, smaller reactors using new cooling technology. HALEU can be enriched to up to 20%, though experts in non-proliferation recommend that it be enriched to only 10% to 12%. When will it be available? Urenco stated that the initial production of LEU+ would occur in 2025. The first deliveries to fuel fabricators are planned for 2026. Westinghouse Electric Company announced in April that it was the first company to load LEU+ in a U.S. nuclear reactor. It did so in Unit 2 of the Vogtle Nuclear Power Plant in Georgia. Westinghouse claims the fuel will extend fuel cycles, boost power production, and reduce plant operating costs. KEY QUOTE John Kirkpatrick is the managing director of Urenco USA. He said, "With LEU+, American reactor operators will be able to realize new gains in operation and efficiency that will support an even stronger performance from their existing reactor fleet. Advanced reactor developers will also have a reliable fuel option to fuel new designs." (Reporting and editing by Andrea Ricci; Timothy Gardner)
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Gold reaches record highs as bets on rate cuts and the US government shutdown increase demand
Gold prices reached a new record high on Friday, boosted by the expectation of a Federal Reserve rate cut in this month as well as safe-haven demand due to the ongoing U.S. Government shutdown. By 09:38 am, spot gold had risen 0.6% to $3,887 an ounce. ET (1011 GMT), following a session high of $3.896.49. U.S. Gold Futures for December Delivery rose by 0.4% to $3.911.80. In a low interest rate environment, gold, which is viewed as an asset of safety in times of economic and political uncertainty, flourishes. It has increased by 48% this year. Bob Haberkorn, RJO Futures' market strategist, said that people are buying gold when it dips. With the government shut down the only way gold can go up is upwards. The U.S. shutdown continued for a second consecutive day on Thursday. This threatened thousands of federal government jobs and could delay the release of key economic data, such as the closely-watched non-farm payrolls report (NFP), due Friday. Also, the weekly unemployment claims report, which is a crucial indicator of the health of the labor market and was due to be released on Thursday, wasn't released. The ADP National Employment Report released on Wednesday showed that private sector employment in the United States fell by 32,000 last month, after August's decline was revised downwards. According to CME FedWatch, traders are pricing in an almost certain 25-bps rate cut for this month. "With trade tensions, tariffs, and geopolitical hotspots not showing any signs of resolution, there is still a favorable environment for the demand for safe havens." The central banks will not abandon their current buying programs, especially given the long-term strategies in place," StoneX stated in a Thursday note. Gold is Goldman Sachs’ most-conviction commodity recommendation. The bank stated in a Wednesday note that the risks of its forecasts for gold prices at $4,000/oz by mid-2026, and $4,300/oz by December 2026 have increased. Other than that, silver spot rose by 0.8%, to $47.70 an ounce. Platinum increased 1.4%, to $1,579.05, and palladium remained flat at $1244.75. (Reporting and editing by Noel John in Bengaluru, John Biju)
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S&P 500 Index to reach record highs as rate-cut betting offsets shutdown concerns
On Thursday, the benchmark S&P 500 is expected to open at an all-time high, thanks to renewed expectations of interest rate reductions. Traders are bracing for a session that will be data light and with few new catalysts. Investors have been able to ignore the uncertainty of the U.S. Government Shutdown because they are anchored to a Federal Reserve that is dovish. The labor market is at the core of the Fed’s policy outlook, and it's a crucial part of its dual mandate. Investors are increasingly relying on alternative data sources as the government shutdown has created a data vacuum. Art Hogan is the chief market strategist for B. Riley Wealth. He said, "I believe they will consider the fact that there's a weak trend in the job market, which they are trying to defend at this time." According to a Challenger, Gray & Christmas report, U.S. employers have announced fewer layoffs since September, but their hiring plans for this year are the lowest they've been since 2009. The report was released a day following a Wednesday ADP National Employment Report that showed a lower than expected level of employment. These reports are not as important as those from the Labor Department. They fill the gap left Thursday by the weekly unemployment claims report. This is a key indicator of labor market strength and was the first data to be affected by the shutdown. The recent data has been interpreted by traders as being enough to force the Federal Reserve towards a rate cut of 25 basis points at its next policy meeting. At 8:23 a.m. At 8:23 a.m. ET, Dow E Minis were down by 7 points or 0.01%. S&P 500 E Minis were up by 19 points or 0.28%. Nasdaq E minis were up by 144.25 or 0.58%. On Wednesday, the S&P 500 index and blue-chip Dow closed at record highs. In the past, shutdowns of government agencies have not had a significant impact on equity market. Investors are looking for signs of monetary ease, and the data vacuum is a risk. Hogan stated that the Fed would be more inclined to reduce rates the longer the shutdown continues. Investors will also be analyzing the comments of Dallas Fed President Lorie Lo Logan on Thursday. Tesla's stock rose 1.9% ahead of the release of its quarterly delivery report. Shares of Lithium Americas, listed on NYSE, fell 4.7% following a downgrade by Canaccord Genuity. Equifax and TransUnion credit bureaus fell by 10.2% and 10%, respectively, following the launch of a FICO program which could give mortgage lenders access to scores without having to rely on bureaus. FICO was up by 20.3%. Advanced Micro Devices rose 3.3% following a report that Intel had begun early discussions to add Advanced Micro Devices as a customer. (Reporting and editing by Niket Nishant and Sukriti gupta, both in Bengaluru)
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Copper reaches 16-month high due to supply concerns and lower dollar
The copper price rose to its highest level in 16 months on Thursday, as fears of shortages caused by supply disruptions and the lower dollar surpassed weak demand forecasts for China's leading consumer. The benchmark copper price on the London Metal Exchange rose 1% to $10,479 per metric ton, up from $10,520.5. This is the highest level since May of last year, when industrial metal prices reached record highs over $11,100 per ton. The latest on supplies comes from Indonesia, where Freeport McMoRan’s Grasberg operations suspended operations on 8 September after a deadly mudslide. The suspension of operations at Grasberg comes after other major disruptions in this year, including Kamoa Kakula mine in the Democratic Republic of Congo (DRC) and El Teniente in Chile. The dollar is also under pressure due to the shutdown of the U.S. Government. Tom Price, Panmure Liberum's analyst, said that the dollar was already under stress due to tariffs and a slowing U.S. economic growth. The lower dollar makes metals priced in dollars cheaper for holders of currencies other than the U.S. dollar, which could increase demand for industrial metals. After partisan differences prevented Congress and White House from negotiating a funding agreement, the U.S. Government has closed down many of its operations. Private surveys this week showed that factory activity fell in many parts of the world in the last month. Signs of a slowdown of U.S. economic growth, and the expected impact of President Donald Trump’s tariffs were added to the pressure of weak Chinese demand. The focus was also on the zinc stocks registered at LME warehouses, which have fallen by 66% from mid-July to their lowest level since March 2023. . Concerns over the availability of zinc at the LME have fueled a surge in premiums for the cash contract in the three months ahead to three-year-highs around $80 per ton, compared to a $6 discount back in July . The price of three-month zinc rose by 1.1% to $3,020 per ton after hitting a high of $3,032 in the previous nine months. Other metals saw a 0.6% increase in aluminium to $2.704.5. Lead rose 0.4% at $2.018.5. Tin advanced by 0.8% to $35,300. Nickel increased 0.6% per ton to $15,280.
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Bloomberg News reports that Eric Trump has signed up with Citigroup as a client
Bloomberg News, citing sources with direct knowledge, reported that Eric Trump, son of U.S. President Donald Trump, had signed up to be a Citigroup client and set up a trust which holds some of his dad's money. Reports added that the value of the trust held by Citigroup with the U.S. president as its beneficiary is not clear. Donald Trump's second term in office saw him hand over the management of his assets to his children. This was a repeat of an arrangement made during his previous term. The report stated that Citi's relationship began after CEO Jane Fraser congratulated President Trump for his victory in the November election, and wealth management chief Andy Sieg conducted the discussions with Eric Trump, age 41. Report said that the bank had considered how to limit the access of information about the trust to key staff, such as Sieg, and Kent Lucken, Citigroup's banker who handles the relationship. Could not independently verify the article. Citigroup's spokesperson declined to respond to a question. Trump claimed in an August interview with CNBC that the two largest lenders in the United States, JPMorgan Chase & Bank of America, had refused to accept his deposits after his first term as president, but did not provide any evidence. Trump said to CNBC that he had "ended up going all over the place to small banks." Bloomberg reported that this year more banks expressed interest in establishing relationships. Some of them even privately contacted the Trump family.
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Czech billionaire Kretinsky sells Thyssenkrupp stake after JV plans fail
The Czech billionaire Daniel Kretinsky agreed to sell his 20 percent stake in Thyssenkrupp’s steel business and scrap plans for joint ventures, according to a statement released by both parties. This could pave the way for an agreement with Jindal Steel. The sale of the stake ends long-running discussions about what could have been a German and Czech steel and energy giant. Discussions that have made no measurable progress since Kretinsky purchased a fifth in Thyssenkrupp Europe (TKSE) late last year. Thyssenkrupp shares, which had earlier reached a high of six years, briefly fell on the news, before recovering and trading 1.6% higher by 1042 GMT. Thyssenkrupp can now move forward with its talks with India's Jindal Steel International. Jindal Steel International last month made an indicative offer for the entire TKSE business, a volatile one that its parent had been trying to sell for years. The statement stated that Kretinsky’s EP Group “respects Thyssenkrupp’s AG preference to focus on discussions with Jindal Steel International” and that the price paid by Kretinsky’s EP Group to Thyssenkrupp to acquire the TKSE shares would be reimbursed. Although both parties have not disclosed the purchase price of the property, those familiar with the matter estimate it to be around 140 million Euros ($164 million). This news comes at a time when uncertainty is growing about the future of steelmaking in Europe. The sector is battling with low-cost Chinese imports, rising energy costs, and a delayed decarbonisation based on hydrogen of one of the most pollution industries. The EP Group of Kretinsky and Thyssenkrupp aimed to form a joint venture with TKSE that would be 50/50. However, the talks have proved difficult as powerful unions accuse the Czech businessman for refusing engagement. $1 = 0.8511 Euros (Reporting and Editing by Matthias Williams, Louise Heavens and Matthias Williams)
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Stocks continue to rise as markets assess the impact of US shutdown
Gold traded at near-record highs as investors digested potential ramifications from a U.S. shutdown. Meanwhile, a weak U.S. private labour market report strengthened bets that the Federal Reserve will cut rates. The prolonged shutdown of the U.S. federal government could delay or disrupt the release of important official data, such as those on inflation and employment. This would cloud the picture of the health of the largest economy in the world and the direction of interest rates. A Friday release of the monthly payroll report is unlikely. This brings into focus an ADP employment report from overnight that showed unexpected job losses in September. The traders are pricing in two quarter point Fed rate cuts before the end of this year. Kevin Thozet of Carmignac Asset Management, who is a member of the investment committee, said, "I hope that they can sort this quickly." He was referring to the shutdown in the federal government. Inflation data were also due before the next Fed meeting. He said, "It is like a man walking with a dog who has no sight." He added that while U.S. stock prices have done well, the dollar has weakened due to uncertainty over the credibility of U.S. financial institutions in general. SHUTDOWN ANGST HURTS DOLLAR AND BOOSTS GOLD On Thursday, the MSCI global stock index rose by about 0.3%, after European stocks reached a new record high of about 0.7%. Wall Street futures also rose between 0.2 to 0.4%. The tech shares in Asia rose earlier, contributing to the rise in regional stock indexes. This was partly due to news that South Korean chip giants Samsung and SK Hynix had signed partnerships with OpenAI data centers. Gold reached an overnight high of $3.895.09, as a combination of Fed easing and shutdown anxiety pushed it to a new all-time record. This also supported U.S. Treasuries by sending yields dramatically lower. Gold last rose 0.4% to $3,880. Overnight, the yield on two-year Treasury bonds fell to a new two-week low at 3.531%. It was last seen at 3.5429%. Michael Brown, Senior Research Strategist at Pepperstone, said: "As it is usually the case, new highs will likely beget more fresh highs. The momentum remains firmly with bulls and the fundamental argument for further upsides in PMs (precious Metals) is also a strong one." The U.S. Dollar Index, which measures the currency's performance against six major counterparts, has been stuck near an overnight low of 97.459, which was a new one-week low. It was last trading at 97.567 and down 0.2% on Wednesday's closing price. In remarks made at an industry conference, Bank of Japan Deputy governor Shinichi Uchida expressed confidence that the conditions were in place for another rate hike. The euro increased slightly to $1.1752 while the sterling remained largely unchanged at $1.34815. The oil prices fell on Thursday as concerns over an oversupply of the market continued to weigh. Brent crude futures dropped 0.4%, to $65.09 a barrel. U.S. West Texas Intermediate crude fell 0.4%, to $61.54 a barrel.
OPEC and China are the triple whammy for uncertainty in crude oil: Russell
Crude oil prices have been driven primarily by the unwinding OPEC+ production cut, China storage flows, and geopolitical tensions this year. This is likely to continue for the foreseeable.
It is important to understand the factors that influence the market. It is impossible to predict with accuracy the future of these factors.
Forecasting the market is a difficult task for the crude oil industry because all three factors are unpredictable and can change rapidly.
The Energy Markets Forum, held in Fujairah (the hub for oil storage and shipping in the United Arab Emirates) this week, was a place where participants and attendees could not help but notice the contradiction.
The level of uncertainty about the future two or three quarters is marked.
Prices tend to move in opposite directions depending on the three factors that currently shape crude markets.
It is not certain whether global demand will be able to absorb this extra oil.
The situation is further complicated because the increase in exports of the group does not match the permitted increases in production.
Since April, when the group began to ease production restrictions, analysts and industry sources estimate the eight OPEC+ members have produced about three quarters of the additional oil output they targeted.
The market is still waiting for 500,000 bpd or 0.5% of the global demand.
The lifting of OPEC+'s production quotas is actually a positive for the prices.
The market may not react strongly if the eight OPEC+ member countries agree to increase their production quotas at a weekend meeting, as they wait to see what extra oil is actually available.
CHINA STORAGE
China's storage of crude oil is seen as a positive factor, at least for the short-term. It has absorbed any excess crude in recent months and helped to stabilize the benchmark Brent futures price in a tight range between $65 and $70 per barrel.
China does not disclose the amount of crude oil flowing into strategic and commercial storages. However, the surplus can easily be estimated by subtracting the volume processed by refineries and the total of imported and domestically produced oil.
According to this, China has likely been building up its stockpiles at least by 500,000 bpd this year.
It is hard to predict, given the lack transparency, whether China will build up its inventories or if they will reduce them.
Price is a good predictor, because China has a history of purchasing extra crude oil when prices are low and drawing from its inventories when they rise.
LSEG Oil Research estimates that China's crude oil imports fell to 10.83 million bpd, down from 11.65 millions bpd, in August. This is the lowest level since February.
Oil prices rose in June, during the conflict between Israel & Iran. This is when September cargoes were arranged.
The short conflict between Israel, Iran and Syria also serves to remind us that geopolitics has played a larger role in this year and remains an unpredictable factor.
The trade wars started by Donald Trump have created economic uncertainty, as well as tensions in the Middle East.
These events will also have an uncertain impact. In the case of Russia, damage to its refineries will likely reduce its refined fuel exports but increase crude oil shipments, which would lead to higher refining margins.
Price volatility can be caused by uncertainty, but market participants may also become cautious and not push as hard in one direction or the other while they wait for hard data to determine which factor will win.
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These are the views of the columnist, who is also an author. (Editing by Jan Harvey).
(source: Reuters)