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Ukraine and the US discuss ways to make the minerals fund operational within a year
Ukraine's Yulia Shvyrydenko said that the United States and Ukraine have discussed ways to make the minerals fund operational before the end of this year. The fund's initial meeting is scheduled for July. Svyrydenko signed the agreement in Washington, after months of hard negotiations, which made the terms more favorable for Kyiv. The agreement was heavily promoted by U.S. president Donald Trump. The Ukrainian parliament ratified this agreement. Svyrydenko met with U.S. Treasury Sec. Scott Bessent on Wednesday and the Development Finance Corporation which will be the partner of the Minerals Fund. "We discussed very concrete steps to make this fund functional during this year," Svyrydenko told reporters. We will have our first board meeting in July to discuss the seed capital needed to operate this fund. We should also adopt a strategy for investing in this fund over the next few decades. Negotiations leading to the signing of the Mineral Fund deal were preceded by a heated discussion between Trump and Ukrainian president Volodymyr Zelenskiy at the White House about how to end Ukraine's war with Russia, which has lasted for three years. Zelenskiy's ability to repair his relationship with Trump was dependent on the agreement. In April, the two men briefly met at the Vatican during the funeral for Pope Francis in order to get their relationship back on track. Reporting by Gram Slattery, Costas Pitas and SonaliPaul; Editing by Ron Popeski & SonaliPaul
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China's coal power plant approvals grow after 2024 decline
China approved 11.29 gigawatts (GW) of new coal power plants in the first three months of 2025, already exceeding the 10.34 GW approved in the first half of 2024, a new Greenpeace report showed on Thursday. WHY IT'S IMPORTANT Last year, Chinese approvals of new coal-fired power capacity fell 41.5% year-on-year to 62.24 GW, the first annual decline since 2021. The new data suggest approvals are tracking higher this year. While all the approved projects may not be built, the growing pipeline signals a continued reliance on coal. Reducing coal use to cut emissions is key to China's goal to hit peak carbon emissions by 2030 and carbon neutrality by 2060. KEY QUOTE "The year 2025 marks a pivotal moment in the country's energy transition. There is already enough existing capacity to meet today's peak demand. Approving a new wave of large-scale coal projects risks creating overcapacity, stranded assets, and higher transition costs," said Gao Yuhe, Greenpeace's climate and energy project manager for East Asia. State planner, the National Development and Reform Commission, and the National Energy Administration did not immediately respond to faxed requests for comment. BY THE NUMBERS This year marks the last in China's 2021-2025 five-year plan, in which China has approved 289 GW in new coal capacity, around double the 145 GW approved for the 2016-2020 period. CONTEXT China has said it will start to phase down coal during the 2026-2030 five-year plan, but Beijing has not committed to any specific targets. WHAT'S NEXT Greenpeace called for more ambitious carbon emissions goals from China and a clear timeline for phasing out coal. It also said China's power sector emissions could peak this year as growth in wind and solar outpaces coal. (Reporting by Colleen Howe; Editing by Tom Hogue)
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Tullow Oil Lines Up Production Extension for Jubilee and TEN fields off Ghana
Tullow Oil and its partners have signed a memorandum of understanding (MoU) with the Government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to 2040, which cover the Jubilee and TEN fields off the West African country.The MoU has been signed between the Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC) and Explorco.It includes approval to drill up to 20 additional wells in the Jubilee field, representing investment of up to $2 billion in Ghana over the life of the licenses.As a result of the extension the JV partnership expects to realize a material increase in gross 2P reserves.A number of principles are covered within the MOU that will help underpin the continued development of the Jubilee and TEN fields, including a commitment to work to increase in the supply of gas from the Jubilee and TEN fields to c.130 mmscf/d, a reduced gas price for Jubilee associated gas, and a guaranteed reimbursement mechanism for gas sales.Also, it provides for investment in Ghana National Petroleum Corporation (GNPC) and the Petroleum Commission's capacity with a focus on the use of advanced technologyAll terms and conditions of the existing WCTP and DWT Petroleum Agreements remain in place and continue unchanged.The next steps, following this MOU, are the submission for approval of a Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas sales agreements (GSA), and the submission for parliamentary approval of the payment security mechanism and license extensions planned before the end of the third quarter of 2025."This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation's energy sector. Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.“This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices,” said John Abdulai Jinapor, Ghana's Minister for Energy and Green Transition."This is a valuable step forward for the Government of Ghana, Tullow and our JV partners, highlighting the collaborative and constructive relationship we all have in reaching our shared goal of building a better future for the people of Ghana, through responsible oil and gas development. "This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets,” added Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow.
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Iron ore prices fall as the focus shifts from China's steel demand to a softening of iron ore.
Iron ore futures fell on Thursday as the focus returned to a softening of steel consumption during China's off peak demand season. As of 0238 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.14% lower. It was 701 yuan (US$97.61) per metric ton. As of 0228 GMT, the benchmark July Iron Ore traded on Singapore Exchange fell by 0.69% to $94.8 per ton. Galaxy Futures analysts said that due to the lack of driving forces, the price of the main steelmaking ingredient is expected to fluctuate despite the seasonal weak demand. The iron ore market is not changing fundamentally. "The wave of upward momentum caused by the price rally of coal has faded so ore prices have also weakened," said Zhuo Guqiu, a broker at Jinrui Futures. Zhuo said that the downside potential of hot metal production is limited by its relatively high output despite reductions in production and declining inventories at ports. Iron ore demand is usually gauged by the hot metal production. Galaxy's analysts noted that despite a recent trade truce, the steel exports are showing signs of a slump, which is dragging down demand. A weak steel demand is also a risk to feedstocks. Following Wednesday's rally of more than 6%, other steelmaking ingredients coking coal, and coke, have also seen gains, albeit slower. They rose by 1.01% and 0.11 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange are range bound. Hot-rolled coils fell 0.19% while wire rods and stainless steel gained 0.2%. ($1 = 7,1820 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold prices remain stable as US payroll data is awaited for direction
Gold prices were stable on Thursday, as investors looked at weaker than expected U.S. economic data and global economic and political uncertainty. They also anticipated U.S. employment data to provide further economic signals. As of 0210 GMT, spot gold remained unchanged at $3,372.82 per ounce. U.S. Gold Futures fell 0.1% to $3395.50. Matt Simpson, senior analyst at City Index, said that gold is in a holding pattern, and it's at the mercy of Trump's headlines on trade. It's supported but hesitant to move above this week’s high. The volatility is also suppressed as we wait for the comments of FOMC members, and Friday's NFP Report. It could be a sign of a more positive jobs report, which would weigh on gold. In May, the U.S. service sector contracted for the first month in almost a year as businesses were faced with higher input costs amid fears of stagflation. The Federal Reserve announced a slowdown of U.S. Economic Activity, citing increased costs and prices due to tariff increases since the previous policy meeting. Bullion has gained momentum since U.S. president Donald Trump reiterated on Wednesday his call for Fed chair Jerome Powell to reduce interest rates. Investors are awaiting the nonfarm payrolls data on Friday for more information about the labor market. Trump's doubled tariffs on imports of steel and aluminum took effect. His administration is seeking "best offers from trade partners" to avoid additional levies scheduled for July. Trump said that Xi Jinping, the Chinese president, was "extremely difficult to deal with", highlighting tensions before a long-awaited phone call between two leaders scheduled for this week. In a low interest rate environment, gold, which is a safe haven during periods of economic and political uncertainty, tends thrive. Other than that, silver spot fell by 1.3%, to $34.51, platinum increased 0.9%, to $1,093.07, and palladium remained at $1.001.70.
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Asian shares continue to rise, while the dollar languishes in front of the ECB
The U.S. Dollar remained stagnant as the European Central Bank released its outlook on a turbulent global economy. Dollar fell in the previous session due to weak U.S. data on jobs and services. Friday will bring more important employment data. The damage to the U.S. economic system is becoming more evident as a result of President Donald Trump's erratic trade policies, and bilateral agreements remain unrealised. Canada was preparing possible retaliations against new U.S. tariffs on metals, while the European Union announced progress in its trade negotiations with Washington. Market watchers will therefore pay more attention to the signals that Christine Lagarde gives about future decisions. Kyle Rodda is a senior analyst for Capital.com. He said that there's uncertainty regarding the guidance given by the central bank, due to the uncertain outlook of U.S. global trade policy and U.S. Trade Policy. If the central bank fails to provide sufficiently dovish advice, it could disrupt the equity markets and give the euro upward momentum. Trump's doubled tariffs on imports of steel and aluminum took effect on Wednesday. They were aimed at Canada and Mexico. On the same day, Trump's administration asked trading partners for "best offers" to prevent other import levies from taking effect in July. Ryosei Acaza, Japan's top trade negotiator, will be in the U.S. for a second round of negotiations on Thursday. Friedrich Merz is due to travel to Washington as well. MSCI's broadest Asia-Pacific share index outside Japan rose 0.7% in the early trading, while Japan's Nikkei index fell 0.2%. The dollar index (which measures the greenback versus a basket currencies) was flat at 98.85, after a 0.5% decline on Wednesday. The dollar gained 0.1% to 142.92 yen. The euro traded at $1.1416, unchanged from the previous trading session when it had gained 0.4%. Gold lost its gains of the previous day, while oil fell after an increase in U.S. stocks and Saudi Arabia slashed its July crude prices for Asian buyers. Spot gold was down 0.1% to $3,372.7 an ounce. U.S. crude fell 0.2% to $62.75 per barrel. The Euro Stoxx futures for the entire region were not much changed, while U.S. stocks futures, S&P 500 E-minis were down by 0.1%.
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Copper prices rise on weaker dollar
London copper prices rose slightly on Thursday, despite a weaker dollar. The market's focus was on the ongoing trade talks between the U.S. As of 0102 GMT the three-month copper contract traded on the London Metal Exchange rose 0.31%, to $9,651 a metric ton. The most actively traded copper contract at the Shanghai Futures Exchange was largely unchanged, at 78.190 yuan. Dollar-denominated investments are cheaper for holders of currencies other than the dollar. On Wednesday, U.S. president Donald Trump said that his Chinese counterpart Xi Jinping was "extremely difficult to make a trade with". This exposed frictions, after the White House had raised expectations for a long-anticipated phone call between these two leaders. Canada was preparing possible retaliations, while the European Union announced progress in trade negotiations on Wednesday as the new U.S. Metals Tariffs caused more disruption to the global economy, and increased urgency in negotiations with Washington. ANZ reported that "Trump's tariffs of 50% on aluminum and steel have raised expectation that he would soon follow through on his pledge to impose tougher duties on copper, as well." Tin prices on the LME fell around 0.3%, to $31,935 per ton. This was after they had hit a record high of $17,648 a ton on Wednesday. The reason for this is that there are concerns about the slow resumption in supply from Myanmar's rich tin state Wa. Lead added 0.5% at 16,720 yuan and tin was up 1.4% on Thursday. Nickel fell 0.2% to 121.800 yuan. Aluminium gained 0.5%. Nickel edged up 0.1% to $15,415 and lead fell 0.4% to $1982. Click or to see the latest news in metals, and other related stories. DATA/EVENTS - (GMT 0600 Germany Industrial orders MM 0400 Germany Manufacturing O/P cur price, Consumer Goods SA 0830 US S&P GLOBAL pmi: MSC COMPOSITE – OUTPUT MAY 1215 EU ECB refinancing, deposit rate Jun 1230 US international trade $ Apr 1230 US initial jobless Clm 31 may, w/e
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US auto suppliers call for immediate action on China's rare earths restrictions
A group of auto suppliers from the United States has called for immediate action in response to China's restrictions on rare earths and minerals, as well as magnets. They warn that the issue can quickly disrupt auto part production. China, which controls 90% of the global processing capacity for rare Earths, used in everything from cars and fighter jets, to home appliances and household appliances, implemented restrictions in April, requiring exporters obtain licenses from Beijing. The new restrictions were imposed after the U.S. and China began a trade dispute following President Donald Trump's tariffs against Chinese imports. The Vehicle Suppliers Association, in a recent statement, said that parts manufacturers face "serious and real-time risk" to their supply chain. The group stated that "the situation is still unresolved, and the level concern is very high." "Immediate action and decisiveness are needed to avoid widespread disruptions and economic fallout in the vehicle suppliers sector." The White House has not yet commented. In a letter sent on May 9th, the supplier group expressed urgent concerns over the Chinese restrictions. The group was joined by the trade group that represents General Motors (GM), Toyota (Toyota), Volkswagen, Hyundai, and other major automakers. MEMA and Alliance for Automotive Innovation, in a letter to Trump's administration, wrote: "Without reliable, timely access to these magnets and elements, automotive suppliers would be unable produce key automotive components such as automatic transmissions and throttle bodies. They also could not manufacture sensors, seatbelts, speakers, lights and motors. Exports of rare-earth magnets from China have halved since April, as companies struggled to deal with a complex application process that requires hundreds of pages of documentation. In a post on social media last Friday, Trump accused China for violating the terms of an agreement reached in May that would temporarily reduce tariffs and other trade restrictions imposed by both sides. The restrictions are already having an impact on U.S. automobile companies. Ford said it shut down production at its Chicago plant of the Explorer SUV for a whole week in May due to a shortage of rare-earth metals. (Reporting and editing by Sandra Maler, Christian Schmollinger, and David Shepardson)
KKR pulls out of Thames Water Rescue Deal
Thames Water announced that U.S. Private Equity firm KKR pulled out of a multi-billion pound plan to save the company. This has reignited fears about Britain's largest supplier needing to be nationalised in order to avoid a financial collapse.
The company's 18 billion pound ($24.35billion) debt load has pushed it to the edge. It was counting on KKR to invest about 4 billion pounds of new equity in order to stabilize its finances.
The government said that it was prepared to temporarily nationalise Thames Water if the company failed to recapitalise.
The utility has become the focus of public anger against the water industry, which is being blamed for polluting Britain’s rivers and oceans while increasing bills, paying dividends, and failing to invest infrastructure.
Separately on Tuesday, a government-commissioned review said water regulation in England and Wales needed to be overhauled after multiple financial and environmental failures.
Thames Water bosses stated in mid-May the company will need to be relieved from fines imposed by regulators. The company estimated that these fines could amount to 900 million pounds per year between 2025 and 2030. This would help attract equity, and prevent nationalisation.
Last week, Thames was fined over 123 million pounds due to sewage failures.
SENIOR CREDITOR PLAN
KKR didn't immediately reply to a question about why it pulled out, after Thames Water stated in its statement that "KKR indicated that it would not be able to proceed".
Thames Water Chairman Adrian Montague stated that the company will proceed with discussions with senior creditor who have their own alternative plan. This is likely to include a debt-for-equity swap.
In February, a group of these creditors gave an additional loan to Thames Water that will only support its finances until May 2026.
Montague called it "disappointing", that the preferred partner of the company had pulled out after two months of due diligence.
Thames Water announced in March that it aimed to secure new funding before the end of June after an equity raising process involving six bidders.
In an effort to put an end to the scandal, the Labour government tasked former deputy governor of Bank of England Jon Cunliffe with reviewing the industry. At that time, the Labour government ruled out the renationalisation of the privatised water sector in England and Wales.
In his interim report, released on Tuesday, he said that stronger and better coordinated regulation is needed, as well as a reduction in the risk around companies to attract investors who are willing to accept lower long-term returns.
(source: Reuters)