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ENAMI, a Chilean company that produces smelters, attracts the interest of traders and miners
ENAMI, the Chilean state-run mining company, said that 15 entities including major miner and traders expressed interest in financing a $1.7billion smelter project. WHY IT IS IMPORTANT ENAMI stated that interested parties include mining companies such as Rio Tinto, commodities traders like Hartree Partners and Vitol (Javelin Global Commodities), funds of investment (Orion Resource Partners), and banks, including SumitomoMitsui Bank Limited Macquarie Bank Societe Generale. ENAMI reported that the Japanese conglomerate Mitsui as well as Indo Asia Copper, a copper producer in India, and Foreign Engineering and Construction, a subsidiary of China Nonferrous Metal Industry, also expressed an interest. KEY QUOTE Ivan Mlynarz of ENAMI said, "It's been very gratifying seeing the market's enthusiasm for this mega-project... It's a signal of investor confidence in our company." CONTEXT ENAMI launched a process in August to find investors for a modernization of a smelter in exchange for the supply of copper cathodes. Renovations are being carried out at the Hernan Videla Lira Smelter, located in the Atacama Region. This will allow it to process up to 850,000 tons of copper concentrate per year and produce 240,00 tons of cathodes. The company has said that the initial offers will be due at the end of October. After this, ENAMI will move to the binding offer stage. (Reporting and editing by Rosalba o'Brien, Daina Beth Solon)
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Globe and Mail: Canada PM asked Anglo American to relocate its headquarters to Canada in exchange for Teck deal approval
The Globe and Mail, citing sources familiar with this matter, reported that Canadian Prime Minister Mark Carney had told Anglo American it would have to move its headquarters from the United States to Canada if its proposed acquisition by Teck Resources was to be approved. Anglo American, based in London, and Teck, based in Canada, announced last week a merger worth $53 billion. This is the second largest M&A transaction in the mining sector. The merged entity will be headquartered in Canada, with a primary listing in London. The Globe and Mail reported that Carney had made it clear in his discussions with Anglo American that any potential buyer of Teck must meet the requirement to move its headquarters. An Anglo American spokesperson declined comment on the report. However, they pointed out that CEO Duncan Wanblad stated last week Vancouver was the most natural location for the combined company given its operations and project are largely located in the Americas. The spokesperson said in an email that "Anglo American also has its Americas exploration teams based out Vancouver for a very long time. We are therefore familiar with the set-up." Could not verify the report immediately. Teck refused to comment. The office of PM Carney did not respond immediately to a comment request. (Reporting by Ananya Palyekar and Dheeraj Kumar in Bengaluru; Editing by Shinjini Ganguli)
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Draft shows that the EU will miss U.N. deadlines for new climate targets
A document from the EU's negotiating team, seen by, revealed that the European Union did not expect to meet its U.N. mandated climate goal in time to meet a crucial deadline this month. Instead, it has drafted plans for submitting a temporary target, which may change later. The EU is struggling to agree on a new climate goal for 2040. This has stymied plans to submit to the United Nations a 2035-target by the deadline of this month. The EU planned to base its 2035 target on the 2040 goal. The draft EU document seen by revealed that the bloc was now considering submitting to the U.N. a "statement-of-intent" about what its goal for 2035 will be. This will indicate a reduction of between 66.3% and 72.5% in emissions by 2035 compared to 1990 levels. Document stated that the EU would decide on its final target for 2035 after reaching an agreement with its 2040 climate goals. The draft will be discussed by the ambassadors of EU countries on Tuesday, but it could change during negotiations. The EU is taking this step to ensure that it does not go empty-handed to the U.N. General Assembly next week where Secretary-General Antonio Guterres asked all countries to declare their climate targets to generate momentum for the global COP30 Climate Negotiations in November. It leaves open the question as to how ambitious the EU’s final climate target will be. This increases the likelihood of the EU falling behind other major emitters such as China in setting their new climate goal. Manon Dufour is the executive director of the think tank E3G. She said that the plan would allow the EU and other countries to reach a more ambitious goal in the future, before the COP30. However, it also raised questions regarding the EU's leadership on climate change. She said: "It does little to dispel any doubts regarding the EU's internal transition or galvanize global partners in advance of the UN General Assembly. This is a crucial year for global climate change action." The document stated that the higher end of target range represents a path towards a 90% reduction in emissions by 2040, which is the climate goal 2040 for the EU countries. The lower end of the range is calculated by drawing an equilateral triangle between the EU’s current 2030 and 2050 goals for climate change. Diplomats from the EU said that countries such as Poland support a lower-end range, while others like Spain and Denmark prefer a higher goal. The document was drafted by Denmark, the country that currently holds the rotating EU Presidency. The company declined to comment. Reporting by Kate Abnett and Virginia Furness, London; editing by Matthew Lewis
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Bessent: US won't hit China over Russian oil with tariffs unless Europe first goes.
U.S. Treasury secretary Scott Bessent stated on Monday that the Trump administration will not impose any additional tariffs on Chinese products to stop China's purchase of Russian oil, unless European countries impose steep duties on China and India. Bessent and Bloomberg agreed in a joint-interview that European countries should play a greater role in cutting Russian oil revenue and ending its war in Ukraine. Bessent replied, "We expect Europeans to contribute now and we cannot move forward without them." Bessent was asked if the U.S. will impose Russian oil tariffs on Chinese products after President Donald Trump imposed an additional 25% duty on Indian imports. Bessent stated that he had pointed out to Chinese officials during discussions on TikTok and trade in Madrid that the U.S. has imposed tariffs against Indian goods. Trump also urged European countries to impose 50% to 100% tariffs on China and India in order to stop Russian oil revenues. He said that the Chinese response was that the purchase of oil is a "sovereign issue." Bessent criticised the purchases of Russian crude oil by certain European countries. Other countries buy petroleum products refined from Russian crude in India at discounted prices, he said, and that they were financing a conflict on their own soil. Bessent stated that "I guarantee that the war will be over within 60 to 90 days if Europe imposes substantial secondary tariffs against the buyers of Russian Oil" as it would eliminate Moscow's primary revenue source. The Treasury chief stated that the tariffs placed on Indian goods due to Russian oil purchases have brought about "substantial" progress in negotiations with India. New Delhi and Washington are holding another round of discussions with the U.S. Tuesday, amid a recent thawing in rhetoric between Trump's and Indian Prime Minster Narendra Modi. Bessent stated that the U.S. was willing to work with European nations to consider harsher sanctions against Russian entities, such as oil majors like Rosneft or Lukoil. He also said that steps would be taken to prepare for a greater use of Russian assets which have been frozen after Moscow's invasion of Ukraine in 2022. He said that this could be done by first seizing small amounts of the $300 billion frozen assets, or by placing them into a special-purpose vehicle which could serve as collateral to a loan for Ukraine. (Reporting and editing by Lisa Shumaker, Daniel Wallis, and David Lawder)
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Blue Water has been denied the right to extend Citgo's parent sale hearing by a US judge
A Delaware judge denied a request by Blue Water Acquisition Corp, a special purpose acquisition firm, to extend the final sale hearing at a U.S. court ordered auction of Citgo Petroleum’s parent company. Blue Water, a Venezuelan refiner owned by Blue Water, submitted last week a bid worth $10 billion. This included a $3.2-billion settlement proposal for holders of Venezuelan bonds that had defaulted. The company requested that the hearing be extended to allow its part to be taken into consideration by the court. Blue Water representatives informed the court that funding for the offer was not yet committed. The offer came after the deadlines to submit and improve bids. "Perhaps (Blue Water) could spend this week to see if they can commit the financing," Judge Leonard Stark stated, adding that later he may request that an auction officer engage the company about its bid. The company has not responded to any requests for comment. Robert Pincus, a court officer, selected last month a $5.9 Billion An affiliate of hedge fund Elliott Investment Management was named the frontrunner in the auction. Judge Stark stated that he will make a decision about the auction winner following the hearing. (Reporting and editing by Nathan Crooks, Nick Zieminski, and Marianna Pararaga)
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WTO ratifies agreement to reduce billions of dollars in overfishing subsidy
The World Trade Organization announced that a landmark agreement was signed on Monday to reduce billions of dollars worth of subsidies contributing to the overfishing. This is a positive step for global fish stock recovery. The WTO's first agreement since 2017 was signed after years of infighting and stalled discussions. More recently, the U.S. tariff surge has left many critics wondering if the Geneva-based organization still had a future. A WTO spokesperson stated that the formal ratification of the agreement by Brazil, Kenya Tonga, and Vietnam on January 14 meant the deal was now supported by two-thirds of the members. The original agreement, which took place in 2022, had been reached. The government is now forbidden from subsidizing overfished stock and fishing in international waters outside their jurisdiction. Poorer countries will have access to a fund that helps ease their transition into the agreement. Megan Jungwiwattanaporn, from the Pew Charitable Trusts, said: "Fish stock around the world have a chance of recovering. This will benefit local fishermen who depend on an ocean that is healthy." A 2019 Marine Policy study showed that governments around the globe pay $35.4 billion per year to their fishing fleets. This includes fuel subsidies, which allow them to fish on distant oceans. The top five subventioners were listed as China, EU, United States, South Korea, and Japan, though not all are covered by the WTO agreement. The negotiations on new fishing rules that cover divisive topics excluded from the original deal have failed, as India and many other developing economies are seeking carve-outs they see as impossible. The first part, which came into effect on Monday after more than 20 years' negotiations, will expire four years from now if no more comprehensive rules can be agreed. In an interview conducted earlier this month, Director-General Ngozi Okonjo Iweala expressed optimism that the organization could either end the talks or find ways to prevent the first agreement from expiring. (Reporting and editing by Andrew Heavens, Emma Farge)
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Sources say that China's former climate ambassador will meet with EU in order to revive the flailing UN pact
Three sources have confirmed that China's veteran climate envoy who secured two important climate agreements with the United States will meet the EU's top official for green transition on Tuesday in order to revive the floundering international climate talks ahead of the COP30 Summit in Brazil. Xie zhenhua, a former climate envoy who retired after the COP28 talks in Dubai, in late 2023, is scheduled to visit Brussels on 16 September and meet Teresa Ribera, the executive vice-president for the European Commission for a Clean, Just, and Competive Transition. He will encourage the EU to announce ambitious climate goals, and coordinate diplomatic efforts in advance of a preliminary climate summit at U.N. headquarters scheduled for September 24. Two sources said that the purpose of the meeting was to boost the COP30 Climate Summit, which will start in Belem in Brazil in November. Due to the lack of hotel rooms and the high cost, there could be a low turnout at the summit. The United States has also withdrawn from the negotiations process. Three sources confirmed that Xie would meet Ribera who he's known for a very long time. However, they couldn't confirm if the meeting was official or if it would result in a joint agreement or statement. Two sources confirmed that the current climate envoy Liu Zhenmin will not attend the meeting, but the ecology minister Huang Runqiu would. In the run-up to Belem, the U.N. wants to exert pressure on major economies such as China and Europe. Last week It urged all countries In September, the United States will set up more ambitious climate plans to achieve goals previously pledged in 2015 under the Paris Agreement. These are known as Nationally Determined Contributions. The EU is struggling to reach a consensus on its proposed plan. This month, countries such as France and Poland have called for a postponement of the approval of 2040's goal. Two sources have confirmed that China will announce its new NDC on September 24. The U.S., China and their U.S. counterparts John Kerry & Todd Stern had achieved great victories in climate diplomacy before President Donald Trump. However, the U.S. - China relationship is now defined by national security competition and trade tension. (Reporting and editing by Nia William, Kate Abnett in Brussels, Valerie Volcovici & Liz Lee; Additional reporting by Kate Abnett)
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Kazakh miner Solidcore expects a gold rally to offset production decline
Solidcore Resources, a Kazakh gold miner, expects that high gold prices will offset a large part of the production decline due to sanctions related disruptions in concentrate shipments into Russia. The gold price has risen by about 40% in the past year. It reached a record-high of $3,673.95 per ounce, last week, on expectations that the U.S. will soon cut interest rates. Solidcore, previously Polymetal International sold its Russian assets after the U.S. imposed sanctions on its business in Russia. However, it continues to send gold concentrator to Russia to be processed with U.S. approval. The company's profit nearly doubled in 2024 due to high gold prices, but sanctions against concentrate deliveries to Russia caused a 58% decline in the first six months of the year. Vitaly Nesis, CEO of the company, said that the situation had improved significantly in July and August. The company also plans to reduce its inventory in the first quarter 2026. The gold price in 2025 will offset the downward revision of 11% to the production forecast. He said that the gold price rise this year is not sustainable. He said, "I believe there will be a decline." "I wouldn’t be surprised (if the price of gold drops to $3.200 by the year's end). Solidcore, the second largest gold miner of Kazakhstan, has postponed previously discussed acquisitions in Central Asia. These were not likely to be completed this year. "Both deals are not in good shape, if they're not totally off." The gold price has risen, as have sellers' expectations. We are not ready to raise our offer significantly yet. Solidcore will continue to process gold concentrate in Russia under an agreement toll at the Amursk Pressure Oxidation Plant until Solidcore launches its own Ertis plant scheduled for 2028. Nesis stated that the company expected to reach an agreement in the first quarter 2026 with international institutions to secure $500-$600m in project funding for the Ertis facility. The deal could be finalized by the second quarter. (Editing by Gleb Brnski and Jan Harvey).
ADM announces strategy to attend to accounting problems, posts profits miss out on
Worldwide grains merchant ArcherDanielsMidland announced a strategy to repair accounting problems that triggered it to correct particular transactions in 6 years of monetary results on Tuesday, though the strategy will take some time to implement.
ADM validated some employees have actually gotten grand jury subpoenas from the Department of Justice which is investigating its accounting practices, after reported FBI representatives provided subpoenas in Illinois recently.
The subpoenas show that a criminal probe into ADM's. accounting, initially reported last month, is intensifying. quickly and straight connects to accounting issues that the business. stated in January were the topic of an internal probe.
ADM stated some sales in between business units within the. business were not tape-recorded at quantities estimating market value. and remedied particular segment-specific financial information for. previous monetary statements from 2018 to 2023. The filing. showed that ADM had actually overstated the Nutrition section's annual. operating profit by as much as 9.2% in that time.
ADM shares were up 4.9% though they are down more than 20%. for the year.
The upgrade offered today on the intersegment accounting. concern was better than feared, which we believe will eliminate a. major overhang on the shares, stated Arun Sundaram, expert with. CFRA Research study, which upgraded its ADM ranking to purchase.
The business stated the modifications made to previous statements. had no effect on combined financial declarations as a whole. for any duration as they were made to sales in between business. sectors.
Looking ahead, we have established a remediation plan with. respect to the recognized product weak point to boost the. dependability of our financial declarations with regard to the. rates and reporting of such sales, Chairman and CEO Juan. Luciano said in a statement.
ADM stated that it would gradually execute improvements to. internal controls and will be more transparent about how it. values products purchased and sold by one business sector from. another.
It stated, however, it will require time to determine whether the. actions it is taking will remediate the issues in its accounting,. as the business tests the brand-new controls
Luciano spoke publicly following ADM's fourth-quarter. revenues release for the first time given that announcing an internal. investigation into accounting practices in its Nutrition system in. January. He decreased to respond to concerns on the examinations.
ADM reported a lower-than-expected fourth-quarter profit as. oilseed processing and crop origination margins fell and as the. business's Nutrition system, the subject of internal and federal government. examinations, posted a quarterly loss in an earnings statement. postponed by nearly two months by the examination.
ADM said the system took a goodwill disability charge of $137. million in 2023 in animal nutrition, a lower-margin portion of. its Nutrition section.
Federal government investigations are not proof of misbehavior and. do not always result in charges.
The investigations have brought more uncertainty to ADM's. Nutrition sector, which has actually had a hard time to meet lofty revenue. targets and faces slowing demand for meat options and. supply chain problems.
Promoted by executives to be the future of ADM, the Nutrition. division, ADM's smallest, had seen explosive development up until. earnings started to deteriorate in late 2022.
The company reported an adjusted earnings of $6.98 per share. for 2023, in line with assistance reduced in January.
Changed revenues pertained to $1.36 per share for the 4th. quarter, while analysts had actually expected profits of $1.43 per. share, according to LSEG data. ADM likewise announced an additional. $ 2 billion in share repurchases, consisting of $1 billion through an. accelerated program.
ADM said it anticipates full-year revenues for 2024 in between. $ 5.25 and $6.25 per share, down 18% from in 2015 due to lower. margins and greater expenses. In Nutrition, ADM anticipated mid single. digit revenue growth and higher operating earnings.
(source: Reuters)