Latest News
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Namibia Central Bank Chief calls for Diamond Royalty Relief Extension
Namibia's central banking governor Johannes!Gawaxab asked on Wednesday to extend a royalty reduction granted to Namdeb in order to help the miner survive a prolonged global downturn marked by falling market demand and an oversupply. Rough diamond prices are also affected by the rising popularity of lab grown diamonds, as well as a move away from precious stones among younger consumers. Namibia will cut its royalty rates from 10% to just 5% in 2021 to allow Namdeb to extend its land operations until 2042. Namdeb is a joint venture of De Beers with the Namibian Government. "It's important to support Namdeb in these difficult times," said!Gawaxab at a press briefing after the central banks cut its main rate of interest by 25 basis points. This was done to help Namibia's weakened economy. He added, "As a nation, it's important that we support both the employees and the companies." He said that Namdeb would have the space needed to weather the current economic storm sweeping the diamond industry. De Beers claimed that the age of its mines made it difficult to maintain profitable and viable operations. Domestic diamond mining companies are still cash-strapped because of debt service obligations, declining revenue and investments that will improve efficiency. The industry faces headwinds on the medium term," said!Gawaxab. Reporting by Nelson Banya, Editing by Alexander Smith
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Brazil's Eletrobras sold stake in Eletronuclear for $98 Million to J&F
The Brazilian energy company owned by JBS, which is the largest meatpacker in the world, announced on Wednesday that it had signed a contract to purchase the stake of Eletrobras, the state-owned electric utility, in Eletronuclear. This deal was worth 535 million Reis ($98m). Ambar Energia, the energy subsidiary of J&F, secured the transaction, allowing the group to enter the nuclear energy market. This also positions the Batistas as a strategic partner for the Brazilian government which controls Eletronuclear. In the agreement, Eletrobras will be responsible for the tasks that were previously performed by Eletronuclear. These include guarantees for the state-owned firm, as well as the future payment of debentures worth 2.4 billion reais. After regulatory approvals Ambar will own 68% of Eletronuclear’s total capital as well as 35.3% its voting capital. Eletronuclear, on the other hand, will remain in government control via ENBPar. J&F's energy division is one of the biggest private companies in Brazil. It owns several power plants. According to sources familiar with the situation, J&F is also in discussions to purchase EDF's Rio de Janeiro Thermal Plant. J&F is a company controlled by the Batista Brothers. It has rapidly expanded into other sectors, including mining, pulp and paper, finance and banking. JBS, the meat giant of Brazil, has recently listed on the New York Stock Exchange after several unsuccessful attempts. These were partly hampered by investigations into an important corruption scandal in Brazil.
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Botswana’s ODC announces first contract diamond sales in November
Mmetla Msire, the managing director of Botswana’s Okavango Diamond Company, said that it will begin selling diamonds next month to contract buyers, diversifying its sales channels as part of the new government deal with De Beers. ODC's share in Debswana, the 50/50 joint venture between the government and De Beers, was increased from 25% to 30% in the new 10-year agreement signed in February. Its share will reach 40% by the end of the deal. The clause that prevented ODC from competing directly with De Beers in contract sales has been removed. Masire said at a mining conference that "we are targeting our initial sales through this channel by November. Our first two sales will be pilot sales, before we move to full-scale on our third", STRUGGLING DIAMOND MARKET A PROBLEM FOR BOTSWANA Masire said in May that ODC planned to sell around 40% of its supplies through contract sales. The balance would be sold via auctions, strategic partnerships and Botswana based companies. The global diamond industry is experiencing a prolonged downturn. Demand is declining due to a glut of supply, and the popularity of lab-grown stones has weighed on rough diamond prices. ODC temporarily stopped its rough stone sales in 2023 as part of a industry-wide effort to reduce the glut. The company held a gem auction on 25 September but decided to keep its gems citing "conditions which could have had a significant impact on the marketplace". According to Masire's estimates, ODC's revenue in 2024 will be about 60% less than the previous year because of the recession, but it is seeing some stabilization in the market. The company's last three auctions have seen small margins that are up from double-digit losses last year. Diamonds account for 30% of Botswana's revenues, and 75% of the country's foreign exchange earnings. The current market slump has seen the economy contract by 3 % in 2024. IMF predicts a further 1 % contraction this year. (Reporting by Brian Benza. (Editing by Nelson Banya, Mark Potter and Mark Potter).
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Anglo American offers remedies to EU for MMG deal approval, source claims
Anglo American offered to purchase ferronickel for resale to Europe from MMG, for a period of up to 10 year to alleviate EU antitrust concerns over the sale of their nickel business to an unit of Hong Kong listed company. This was revealed by a source with direct knowledge on Wednesday. Anglo American, a London-listed company, announced in February the $500 million sale of its nickel business to a unit of MMG. The European Commission has now begun to examine the sale. Source: The remedy offered would alleviate any regulatory concerns about the deal cutting off some metal supply to customers in Europe while still allowing the Hong Kong firm to sell their products in Europe. Person said that the deal was for an agreed amount ferronickel, which would be equivalent to the current sales of the mines in Europe. The deal would last for five years, with an option to extend it for another five. The Commission, acting as the EU's competition enforcer, has confirmed that Anglo American has received its remedies and extended their deadline decision until November 4. The company is expected to solicit feedback from customers and rivals before deciding whether or not to accept concessions. Anglo American has a broader restructuring plan that includes a refocussing on iron ore and copper mining. Around two thirds of the refined nickel produced goes to the stainless steel industry. (Reporting and editing by Kirsty Donovan, Tomaszjanowski and Foo Yunchee)
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Kuwaiti Minister: OPEC will hire consultant to evaluate member's capacity
Kuwait's Oil Minister Tareq al-Roumi announced on Wednesday that the Organization of Petroleum Exporting Countries is planning to appoint one of the "top consultants" in the near future to assess the production capacities of member countries. OPEC+ Ministers requested OPEC headquarters to develop a method to determine the maximum sustainable production capability for each member. This will be used to establish their production baselines for 2027. The determination of the maximum production capability for each OPEC member or OPEC+ is controversial because some members, like the United Arab Emirates have increased their capacity and pushed the case for higher quotas. Other members, like those in Africa, have experienced declines. Angola left the group in 2024 due to a disagreement over its production target. OPEC didn't immediately respond to a comment request. Al-Roumi didn't say if Kuwait would try to increase its production quota once it expanded its own capacity. Let's wait and see what the study shows before we make a decision. He told reporters in Kuwait that it was difficult to answer the question at this time. Al-Roumi, a Kuwaiti journalist in September, told a Kuwaiti paper that Kuwait's crude-oil production capacity is 3.2 million barrels / day. The level was the highest in over a decade. It peaked at 3.3 millions bpd, then fell below 3,000,000 in 2010. (Reporting and editing by Alexander Smith; Ahmed Hagagy)
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Horse Powertrain executive: We are working with Leapmotor Chery JAC and JAC to expand our global market.
An executive revealed on Wednesday that engine developer Horse Powertrain has been working with Chinese automakers Leapmotor and Chery to develop vehicle projects in order to access global markets outside of China. Horse is a joint-venture between Renault and Geely, who each own 45%. Saudi Aramco, the oil producer, owns the other 10%. "We are working with a number of different automakers around the world," Wang Ruiping told reporters in the office of Horse's Ningbo subsidiary. He named three Chinese automakers as partners, but didn't elaborate. Leapmotor makes electric vehicles, but Zhu Jiangming, the CEO of the company, said last month that it plans to launch a plug-in hybrid as part of its expansion to 15 models in 2027. Horse is made up of former Geely, Renault, and Volvo engine development units and has 17 engines and transmission factories in the world, including eight China. By 2035, the company wants to become the largest engine manufacturer in the world. The company has created hybrid engines for Renault, Geely and Zeekr in models like the Grand Koleos for the South Korean Market and Zeekr’s flagship SUV the Zeekr 9X. (Reporting and editing by Ros Russell.)
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Japan, Spain and South Korea warn against unsustainable copper processing charges
Japan, Spain, and South Korea released a rare statement together on Wednesday to express deep concern over the tumbling copper refining and treatment charges (TC/RCs). They warned that both smelters as well as miners could not develop sustainably in current conditions. Copper smelters are struggling with shrinking margins and falling processing fees due to a tight supply of concentrates and the expansion of smelting capacities in China. Some Chinese smelters processed copper at no cost for Chilean miner Antofagasta in June. After an online meeting, the industry ministers of three countries expressed their concern that the deterioration of TC/RCs has prompted a global reevaluation of copper smelting activities. Several companies have already indicated intentions to reduce or stop copper concentrate smelting. The TC/RCs are fees that miners pay to smelters when they sell concentrate or semi-processed ores. In some spot deals, TC/RCs turned negative this year. This forced smelters and miners to exchange money for smelting. The ministers said that the current market conditions prevent copper smelting to develop sustainably along with mining in resource producing countries. They also warned against a growing dependency on certain countries for both resource producing and smelting nations. They said that they hoped TC/RCs would return to sustainable levels in the trading of copper concentrates. They added that they will engage with countries and stakeholders relevant to establish a resilient, sustainable and copper supply chain. Naoki Kobayashi is the deputy director of Japan's Industry Ministry's mineral resources department. He said that the three countries - all of which import copper concentrate and have domestic smelting facilities - wanted to bring up the issue at the LME Week metals gathering in London. JX Advanced Metals, Mitsubishi Materials and other major Japanese copper smelters have announced plans to reduce copper concentrate processing due to declining fees. (Reporting and editing by Sharon Singleton; Yuka Obayashi)
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WMO warns of extreme weather as CO2 levels reach highest level ever recorded
A new report from the World Meteorological Organization shows that carbon dioxide levels have risen to their highest level ever. This could lead to a further increase in global warming and more extreme weather events. The report found that between 2023 and 2024 the average global CO2 concentration rose by 3.5 parts-per-million, which is the biggest increase since modern measurements began in 1957. It said that the increase in CO2 over the past year was due to the burning of fossil fuels as well as an increase in wildfires in South America. The report also stressed the need to do more to reduce emissions. Ko Barrett, WMO's Deputy Secretary General, said that the heat trapped by CO2 or other greenhouse gases was causing our climate to be more extreme and accelerating it. The concentrations of methane, nitrous oxide and other important greenhouse gasses, such as nitrous dioxide, have also reached record highs, with increases of 16% and 24% respectively compared to pre-industrial levels. CO2 has increased by 52%. This gas (CO2) accumulates. It is very long-lasting... each molecule that is released into the atmosphere has an impact on the world," Oksana TARASOVA, WMO senior scientist officer, said at a Geneva briefing. Tarasova stated that forests, land and oceans absorb about 50% of the carbon dioxide emissions. However, their ability to do so is decreasing. Tarasova stated that "we rely on the natural systems to offset our impacts and they are so stressed, they begin to reduce their help." Tarasova said that trees in the Amazon became stressed by the rising temperatures and low rain during the periodic warming of the Eastern Pacific Ocean, known as El Nino, in 2023. The drought continued until 2024. She said, "If a tree is stressed out or has no water and a high temperature...it will not photosynthesize." (Reporting and editing by Sharon Singleton; Olivia Le Poidevin)
Climate court cases that could set precedents around the world
Courts worldwide are hearing an evergrowing variety of climatechange claims with some of the largest cases in history being decided in 2024 and 2025.
Here are the crucial cases to see:
INTERNATIONAL COURT OF JUSTICE (ICJ)
The world's greatest court is expected to release a decision next year that will lay out U.N. member states' commitments in attending to climate modification.
The U.N. General Assembly asked the court last year to come up with an advisory viewpoint, following a four-year campaign by Vanuatu, a small Pacific island nation where a group of law students initially dreamed up the ICJ petition.
With scant precedent on climate modification in international law, the ICJ viewpoint might make use of arguments from past regional and nationwide court judgments.
Even a relatively conservative ruling asserting that a person nation's emissions can harm another nation might constitute a. major victory for poor countries asking abundant nations to pay more. for environment action.
INTER-AMERICAN COURT OF PERSON RIGHTS (IACHR)
The climate case before the Inter-American Court is shaping up. to be the biggest environment case to date, making use of 262 submitted. legal briefs, more than 600 participants, and hearings in both. Barbados and Brazil.
Thought about one of the world's more progressive courts, the. IACHR might go further than its peers to set new legal guidelines and. standards connecting to national responsibilities around climate. change.
For example, the judges' advisory opinion could resolve. unique securities for environmental defenders facing violence,. name nonrenewable fuel sources particularly as a key culprit in environment. modification, or oblige states to manage contaminating business.
The court's opinion is anticipated by the end of the year, and. will right away apply to its 20 member countries in Latin. America and the Caribbean. INTERNATIONAL TRIBUNAL FOR THE LAW OF THE SEA (ITLOS)
On Tuesday, the worldwide ocean court ruled that greenhouse. gas emissions absorbed by the ocean are a type of marine. contamination, subject to international controls.
An agent for the small-island countries that brought. the case hailed the choice as offering teeth to international environment. modification law.
The court stated that states are lawfully obligated to take all. measures necessary to restrict the increase in the typical worldwide. temperature increase to within 1.5 degrees Celsius of pre-industrial. levels, the target set in the 2015 Paris Arrangement.
Countries are obliged to secure marine environments, even. if they need to go beyond the Paris requirements to do so, the. court said.
EUROPEAN COURT OF PERSON RIGHTS (ECtHR)
The European Court ruled in April that Switzerland had violated. the rights of a group of 2,000 senior women by not doing enough. to combat climate modification.
Unlike the other multilateral courts that are releasing. advisory viewpoints, the European lawsuit was a contentious. lawsuit with a legally binding ruling that orders Switzerland to. revise its climate policies.
The case develops legal precedent for 46 nations that. are signatories of the European Convention on Human Being Rights.
The European Court has seven similar cases on the docket. including 2 that would directly affect Norway's oil industry.
SOUTH KOREA CONSTITUTIONAL COURT
Asia's very first climate-related suit in a nationwide court joins. together five various petitions into one mega case arguing. that South Korea stopped working to secure more than 200 individuals from. environment change.
The petitioners include young activists, children, infants. and one person who was a foetus at the time of legal filing.
AUSTRALIA: TORRES STRAIT ISLANDER CLASS ACTION. An Australian federal court is hearing the first class-action. lawsuit brought by Australian First Nations people, arguing the. state has stopped working to protect them from climate change.
The plaintiffs reside on the remote islands of Boigu and. Saibai in the Torres Strait between Australia and Papua New. Guinea. They argue that the nation's inaction on environment change. methods rising sea levels will ruin their homes and ultimately. result in the disappearance of their islands under the waves.
(source: Reuters)