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Gold drops as investors reduce rate-cut bets. Set for third monthly gain
Gold fell to $4,000 per ounce as the dollar remained near its three-month highs due to uncertainty about another rate cut by the U.S. in December. However, it is still on track to make a third consecutive monthly gain. Gold spot was down 0.5% to $4,004.37 an ounce at 0936 GMT. It had gained almost 4% this month. U.S. Gold Futures for December Delivery were unchanged at $4,016.30 an ounce. Dollar-priced gold is more expensive to other currency holders because the dollar index has been near its highest level in three months. Ricardo Evangelista, an analyst at ActivTrades, said that "gold is under pressure because the dollar has strengthened on the backs of these hawkish comments (by Fed chair Powell)." He said that markets had taken another rate reduction in December as a given. The Fed cut rates on Wednesday by 25 basis points, for the second consecutive time in this year. This brings the overnight benchmark rate down to a range of 3.75% - 4.00%. CME Group's FedWatch showed that after Chairman Jerome Powell made hawkish comments, the markets now place a 67% chance of a 25 bp reduction, compared to 91.1% a week earlier. The demand for safe-havens has also declined due to the optimism surrounding trade after trade talks between China and the U.S. this week. Donald Trump, the U.S. president, said on Thursday that he agreed to reduce tariffs against China in exchange for Beijing crackingdown on illegal fentanyl trafficking. He also stated that he would resume U.S. purchases of soybeans and keep rare earths exports flowing. Evangelista said that the macro-environment remains favorable for gold over the medium and long term. This is due to the ongoing geopolitical turmoil in Ukraine, the Middle East and between the U.S. Silver fell by 0.2% at $48.82 an ounce. Platinum dropped 1.5% at $1,586.64 and palladium declined 0.4% to $1,438.72. (Reporting by Ishaan Arora in Bengaluru; Editing by Jan Harvey)
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Vedanta, an Indian miner, has seen its quarterly adjusted profit increase on the back of higher metal prices
Vedanta, an Indian conglomerate that converts metals into oil, reported a higher adjusted quarterly profit on Friday. This was largely due to higher metal prices. The company's profit before taxes and exceptional items increased 21.7% compared to a year ago, reaching 70.14 billion rupiahs ($798m) for the quarter ending September 30. The operating profit margin increased to 22%, up from 20%. This was due to stable expenses. Due to the uncertainty surrounding U.S. Trade policies, the benchmark three-month aluminium prices and copper rose by 8.2% and 5.6% respectively on an annual basis during the quarter. Mining companies tend to benefit from higher commodity prices by increasing their margins and selling prices. The total revenue of the miner increased by 5.5%, to 392,18 billion rupees. Vedanta’s aluminium business in India is the largest and accounts for nearly 40% of its revenue. Copper is followed by zinc as the company's second largest business. Copper revenue grew by 3.6% and aluminium revenues rose by 14%. India Zinc, Lead, and Silver segment revenue grew by 3.5%. Total expenditures rose by 0.8%, to 334.49 Billion Rupees. The company reported net extraordinary expenses of 20,67 billion rupees. This included a write-off amount of 14,07 billion rupees as well as a settlement of 6,60 billion rupees. Vedanta’s subsidiary Hindustan Zinc reported a higher profit for the quarter on strong silver prices and zinc.
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Trump's nuclear reactor plans raise safety concerns
The Trump administration announced a huge nuclear deal earlier this week that provides an incentive of multi-billion dollars for the U.S. Government to issue permits for new Westinghouse Reactors. Critics say the structure is unprecedented and poses safety and environmental risks. The U.S. Government will help to secure approvals and permits for the $80 billion worth Westinghouse nuclear reactors. The plan gives the U.S. Government a way to get a share of 20% future profits, and even a possible 20% stake in the firm if it's value exceeds $30 billion by the year 2029. The deal represents one of the most ambitious plans for U.S. nuclear energy in recent decades. It highlights President Donald Trump's desire to maximize energy production to meet the booming demand in artificial intelligence data centres. Safety advocates and regulatory experts say that financial incentives could cloud regulatory scrutiny to prevent nuclear accidents. Greg Jaczko is a former Chairman of the Nuclear Regulatory Commission. He said that Three Mile Island and Chernobyl are three of the most serious nuclear accidents in history. All of these problems are linked to a lack of regulatory independence. The White House has said that concerns about safety are unfounded. The regulatory regime is unchanged and not compromised. The White House stated in an email that there was no agreement about regulatory changes. Cameco, the owner of Westinghouse, declined to comment. Brookfield and Westinghouse have not responded to requests for comment. TD Cowen's analysts said in a recent research note that they expect Westinghouse will have 10 large-scale nuclear reactors under construction - enough to power several millions of homes - by 2030. It takes an average of ten years to build a nuclear power plant, mostly due to the complex construction and high costs. Patrick White, an expert in nuclear technology and regulatory issues at the Clean Air Task Force said that effective regulation does not have to be a long or slow process. White stated that it was in both the companies' and the public's best interests to ensure nuclear regulation is timely and predictable. Todd Allen, an expert in nuclear engineering at the University of Michigan said that the Westinghouse design is well-established, but questioned the speed of the projects. Allen stated, "With this aggressive timeline and the demand for reactors all over the world, I'm wondering if there is enough manpower to handle these projects." DURATION DELAYS IN PREVIOUS U.S. WORK PROJECT Westinghouse was forced into bankruptcy in 2017 by its last nuclear project in the United States, the construction of two nuclear reactors in the Vogtle Power Plant in Georgia. The cost of the two reactors was about $35 billion and seven years behind schedule, which is more than twice as much as the initial estimate of $14 billion. Patty Durand has spent many years studying this project. She fears that a fast-tracked permitting process will overlook climate change risks. She said that severe droughts in Europe and America have forced operators to reduce nuclear power to avoid overheating reactors. Westinghouse had a number of issues with its modular design for the AP1000 reactors. For example, some parts were not sized correctly when they arrived at their site. The AP1000 was also used to build the new reactors. They were built using prefabricated parts, and assembled on-site. Edwin Lyman is a physicist with the Union of Concerned Scientists. He fears that the Trump administration may exert too much control over the Nuclear Regulatory Commission in order to have the new reactors approved. (Reporting by Tim McLaughlin and Timothy Gardner; Editing by Nia Williams) (Reporting by Tim McLaughlin, Timothy Gardner and Nia Williams).
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Newmont CEO: Ghana's fiscal stability is key to the $900 million gold mining project opening
Newmont CEO Tom Palmer said that fiscal stability and fair tax systems and royalties are essential if countries wish to attract mining investments. The company had just opened its $900m Ahafo North Mine in Ghana. Newmont only operates in Ghana in Africa, which is one of the most stable mining jurisdictions on the continent. It offers stability agreements to firms that lock in royalties over a period of five to fifteen years. However, the government intends to tighten oversight of mining companies. Palmer, in an interview on Thursday, following the inauguration the Ahafo North Mine, Newmont's second mine in Ghana, after selling the Akyem to China's ZIJIN last year, said that Newmont's investments are based on "very stable fiscal régimes" and on "robust and fair tax and royalties systems." "It's important to have a fair and transparent regime... He said that if the capital is not moved elsewhere, it will. This week, it was reported that Ghana, Africa’s largest gold producer, had ordered audits on mining companies, including Newmont of the United States, AngloGold Ashanti and Gold Fields, as well as China’s Zijin. Ghana is also preparing for major legal reforms as West African countries push to gain greater control over their natural resources in the face of a global commodities boom. Palmer said that the investment climate is still favorable. He said that Ghana was a crucial place. "We are in Australia, Canada and the United States. We're also in Peru, Argentina, Mexico and Suriname. All of these locations were carefully chosen, and we chose to stay there long-term because we know we can maintain and build lasting relationships." Newmont operates two mines in Ghana, Ahafo South & Ahafo North. Palmer called them "cornerstones of the global portfolio" for Newmont. "We've lived here for 30 years." "I expect Newmont to be here for at least another thirty years." Jane Naana Opoku Agyemang, Vice President of Ghana, said that the Ahafo North Mine marks a new phase in inclusive growth for Ghana’s economy. This partnership must be more than just a business deal. She said that the partnership must be able to deliver value for the people of Ghana and in particular those living in the host communities. Ghana's regulatory climate is more stable than in other parts of Africa, where governments led by military forces, such as those in Burkina Faso and Mali that are rich with gold, iron ore, uranium and bauxite and Mali and Niger, tighten fiscal regimes for state revenue. On October 20, spot gold prices reached a new record of $4,380 per troy ounce. This boosted the revenue for miners. The Ahafo North Mine, located 30 km (19miles) from Newmont’s Ahafo South mine, is expected produce 50,000 ounces gold this year. Production will increase to 275,000-325,000 over the course of its 13-year lifespan. Palmer stated that the mine would employ around 1,000 permanent workers. Newmont will produce around 800,000 gold ounces in Ghana by 2024.
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China's Industry Association recommends a capacity cap for lead, zinc and copper
China's non-ferrous metals association, which is backed by the government, has recommended setting a cap on capacity for certain metals such as copper, zinc, and lead to limit the addition of additional capacity, because low processing fees are hurting smelters’ profitability. China's rapid growth in the supply of goods has led to an excess supply in several industries, from steel, solar and coal. Beijing's promise to end price wars between producers in early-July has triggered an anti-involution campaign across all sectors that are plagued with overcapacity. A state-run news outlet reported last month that China was looking at ways to improve regulation regarding the expansion of copper melting capacity. The state-run China Nonferrous Metals News reported that Duan Shaofu was an official of the association who said at a quarter-long briefing: "There's an intense competition in the smelting, refining and other nonferrous metals, but aluminium is the exception." China's cap on capacity for aluminium was 45 million metric tonnes from 2017. This has contributed to the astronomical profits made by producers of this light metal since then. Duan said that the intense competition in the form of 'involution' has weakened companies' bargaining power when it comes to raw material procurement. This has lowered profits and threatened a sustainable development for industry. Copper, zinc, and lead smelters rely heavily on processing fees or treatment and refinement charges. The fierce competition to obtain scarce feedstocks, coupled with rapid expansion of smelting capacities, has put pressure on these fees. Copper concentrate processing charges, for example, are at record lows. China's leading copper smelters have decided to refrain from providing guidance on such fees in the fourth quarter of 2025. This is the third time they have made this decision.
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Sources: Russian-backed Indian refinery sanctions boosts crude run to 90%
Two sources with knowledge of the situation said that after European Union sanctions earlier in the year, Nayara Energy, a Russian-backed Indian refiner, has increased crude processing to 90-93% capacity at its Vadinar Refinery. Sources have said that oil processing at Nayara’s 400,000 barrels-per-day western India plant fell to 70 to 80 percent after the EU sanctions it in July. This impacted its exports, and caused suppliers like Iraq and Saudi Arabia, to stop crude sales to the firm. Nayara was operating at 104% capacity before the sanctions. Nayara, a majority-owned company by Russian entities, is dominated by Rosneft. Rosneft holds 49.13% of the shares and was sanctioned by the United States last week. Nayara and Rosneft didn't immediately respond to comments. Sources said that Nayara crude sales have recently rebounded as the company increased domestic fuel sales. This includes supplies to Hindustan Petroleum Corp., a state-owned refiner. Ship tracking data indicates that the private refiner operates its plant only using Russian oil. Sources said that Rosneft arranged for Russian oil to be sold by traders to Nayara. Sources said that Nayara will likely continue to buy Russian crude oil through non-sanctioned companies, but declined to provide further details on how Nayara pays for its crude oil purchase. It was reported that Nayara settled its Russian oil supply against exports. Reliance Industries - the largest Indian refiner and client of Russia - has stopped buying Russian oil since Washington's sanctions against Rosneft, a Russian energy company, were imposed last week. According to a report on Friday, India's largest refiner, Indian Oil Corp., purchased five cargoes from non-sanctioned sources of Russian oil, due for delivery in December. Nayara has more than 6,600 retail outlets. (Reporting and editing by Joe Bavier; Nidhh Verma)
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Orban, the Hungarian Prime Minister, says he'll seek an exemption from US oil sanctions
Viktor Orban, the Hungarian prime minister, said that he hopes President Donald Trump will convince him to exempt Hungary from U.S. sanctions against Russian oil due to its high dependency on pipeline networks. Orban said that he would discuss U.S. Sanctions on Russian Oil Companies Rosneft, and Lukoil at a scheduled meeting with Trump for the 7th of November and hopes to conclude a wide economic agreement with America. "Hungary has a landlocked status... We depend on the transport routes that allow energy to reach Hungary. Orban stated that the majority of these are pipelines. He said: "We must make the Americans aware of this peculiar situation... if they are to grant exemptions to the American sanctions against Russia." Orban stated that Germany, despite its access to the sea and its refineries, had requested an exemption. Germany's Economy Minister said Tuesday that he received assurances from Washington stating that Rosneft Germany would be exempted from sanctions as the assets were no longer under Russian authority. Rosneft Germany owns the majority stake in Schwedt Oil Refinery. The U.S. announced new sanctions that could put Hungary at risk of relying on Russian crude oil imports. This was just days after an fire forced the Hungarian oil company MOL to reduce its capacity due to a fire in their main refinery along the Danube. The government of Hungary published a draft law to amend the existing legislation on imports and stockpiling crude oil, crude products and other crude materials. This will allow it to designate "standby" filling stations that can provide fuel in an emergency to users who are critical to supply. Orban will meet Trump for the first time next week, since his longtime ally has returned to the White House. (Reporting and editing by Sharon Singleton, Timothy Heritage and Anita Komuves)
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CATL sources lithium ore from outside suppliers as flagship mine remains closed
Sources say that China's CATL placed orders for lithium ore with external suppliers in November as the battery giant is seeking alternative feedstock since its flagship Jianxiawo Mine has closed. Two sources who have direct knowledge of the matter and requested anonymity because they are not authorised to talk publicly, said that a CATL joint venture in Yichun near the mine placed the orders earlier this month with traders. One source said that the two companies rarely did this when the mine was at full capacity. CATL has not responded to a comment request. CATL's Jianxiawo, one of its lithium assets in Yichun, Jiangxi Province, has been closed since the beginning of August, after its mining licence expired. CATL announced in August that it would renew its license as quickly as possible. The Chinese newspaper Securities Times announced a month later that the mine would reopen in a few weeks. CATL, however, has not yet announced such a move. According to Australian government data, the Jianxiawo Mine has a production capacity of 46,000 metric tonnes of lithium carbonate per year, which is 3% of global output in 2025. The mine was closed in last year. It reopened in February, but then shut down again in August. The mine is a major source of lithium for the global market, so prices have been affected each time. Mark Potter, Shanghai Reporting Editor
Mining associations unveil effort to streamline sector's ESG requirements
Mining associations, whose members or individuals include practically 100 business, have released a 60-day public assessment on a programme focused on providing a combined requirement for the sector's environment, social problems and governance (ESG).
Companies around the globe have actually been under increasing pressure from investors and consumers to fulfill stricter ESG standards. Other groups that set ecological and social standards include the Effort for Accountable Mining Guarantee.
The new program, called the Consolidated Mining Standard Initiative, aims to simplify the existing mining requirements, making them relevant to any production center devoted to ESG, and unite a broader series of mining business, its developers stated in a declaration.
The program is led among others by the Copper Mark, a. voluntary international program created in 2019 in line with the United. Nations Sustainable Advancement Goals to promote responsible. practices in the copper, molybdenum, nickel and zinc production. chains.
It likewise includes the Mining Association of Canada and the. International Council on Mining and Metals, whose members are. significant metals and mining groups, and the World Gold Council, an. market body organizing international gold miners.
When settled, the standard is expected to be utilized by. members of these three associations and participants of the. Copper Mark for accountable production, sourcing and recycling. of metals.
This broad adoption would provide the Requirement the best. coverage of any voluntary mining standard to date with. execution anticipated to include nearly 100 mining. companies across roughly 600 operations in around 60. countries, the declaration said.
The Copper Mark, according to the declaration, will develop. into an independent entity overseeing upkeep of the. program topic to the very first consultation, running until Dec. 16, and another much shorter assessment in 2025.
(source: Reuters)