2025-06-23 06:21

Economic pressures drive artisanal mining, impacting corporate operations Rising gold prices fuel conflicts between industrial and informal miners Miners are pressing governments for military support to defend mines TARKWA, Ghana, June 23 (Reuters) - As the afternoon sun beats down on Gold Fields' sprawling Tarkwa gold mine in southwestern Ghana, three men launch a drone into the clear sky, its cameras scanning the lush 210-square-kilometer tract for intruders. The drone spotted something unusual, and within 20 minutes a 15-person team including armed police arrived on the scene. They discovered abandoned clothing, freshly dug trenches, and rudimentary equipment amid pools of mercury and cyanide-contaminated water. The equipment was left behind by so-called wildcat miners, who operate on the outskirts of many of the continent’s official mining ventures - putting at risk their own health, the environment and the official mine operator's profits. Sign up here. The team confiscated seven diesel-powered water pumps and a "chanfan" processing unit used to extract gold from riverbeds. The high-tech cat-and-mouse game is playing out with increasing frequency as record gold prices, now sitting above $3,300 per ounce, draw more unofficial activity - intensifying sometimes deadly confrontations between corporate concessions and artisanal miners in West Africa, according to dozens of mining executives and industry experts interviewed by Reuters. "Because of the vegetation cover, if you don't have eyes in the air, you won't know something destructive is happening," explains Edwin Asare, Gold Fields Tarkwa Mine's head of protection services. "It's like you first get eyes in the sky to help you put boots on the ground.” Almost 20 illicit miners have been killed in confrontations at major mining operations across the region since late 2024, including at Newmont (NEM.N) , opens new tab and AngloGold Ashanti's (AU.N) , opens new tab sites in Ghana and Guinea and Nordgold's Bissa Mine in Burkina Faso. There have been no reports of official mine staff injured. In some cases, clashes at corporate mines caused production halts of up to a month, prompting companies to press governments for more military protection. 'BOOTS ON THE GROUND' Sub-Saharan Africa's unofficial mining operations provide critical income for nearly 10 million people, according to a May United Nations report. In West Africa, three to five million people depend on unregulated mining, accounting for approximately 30% of its gold production, other industry data show, serving as economic lifelines in a region with few formal employment opportunities. Like 52-year old Famanson Keita in Senegal's gold-rich Kedougou region, many inhabitants grew up mining gold in their localities. With simple and traditional methods, they earned extra incomes to supplement those from farming until corporate miners arrived, relocating them from their communities and promising jobs and rapid development. "Those promises have not been fulfilled," said Keita. "Many of our young people are employed in low-level, uncontracted jobs with little pay and no stability. Small-scale farming alone cannot sustain our families." While local residents have long tried to eke out a living on the margins of corporate mines, much of the illicit activity, particularly in the region’s forests and large bodies of water, is now conducted with sophisticated digging and dredging equipment and funding from local cartels and foreigners, including from China. ECONOMIC PRESSURES With rising central bank gold buying and broader geopolitical tensions potentially pushing gold to $5,000 an ounce, Sahel-focused security and mining analyst Ulf Laessing warned that more violent confrontations around mining operations could be expected in the coming months. "The more the gold price rises, the more conflicts we will see between industrial and informal miners," said Laessing, head of the Sahel program at Germany's Konrad Adenauer Foundation. Nine wildcat miners were shot dead in January at AGA's Obuasi mine in Ghana when they cut open the fenced 110-square kilometer concession to scavenge gold, according to a source in the company who asked not to be identified. At AGA's Siguiri Mine, northeast of Guinea, hundreds of wildcat miners invaded the concession in February, prompting military intervention, according to a source familiar with the mine's operations. At least three wildcat miners were shot by guards while others were injured at Newmont’s Ahafo gold mining site in northwestern Ghana in January, police said. In Mali's gold-rich Kayes region, an excavator operator at an illegal mining site in Kenieba told Reuters that operations have expanded rapidly this year, with Chinese bosses deploying more equipment to new sites as gold prices climb. Reuters could not establish who such Chinese operators were, or whether they have any links to companies or official organizations. This year, Ghanaian authorities have been ransacking dozens of informal mining sites, arresting hundreds of locals and foreigners, particularly Chinese nationals, who operate unregulated gold operations in the country's vast forests, including protected areas and bodies of water. "Because of porous borders and weak regulations, the majority of their produce is smuggled," says Marc Ummel, researcher at Swissaid, "depriving the countries of the full benefits." Ghana lost more than 229 metric tons of largely artisanal gold to smuggling between 2019 and 2023, according to Swissaid, which analysed export data within the period. Adama Soro, president of the West African Federation of Chambers of Mines, said artisanal miners also compete with large-scale miners for ore, shortening mines' lives. "We're seeing artisanal miners digging up to 100 meters and impacting the ore body of the big miners, so we're losing money," he said. ARMED MILITARY PROTECTION Miners are resorting to unconventional methods and increased spending at the expense of investment and community projects, said the head of a mining company in Ghana heavily affected by wildcat miners. The mine spends approximately half a million dollars annually on measures, including drone surveillance to combat wildcat mining, but still experiences frequent attacks, the source said. Nordgold, Galiano Gold (GAU.TO) , opens new tab, B2Gold (BTO.TO) , opens new tab and Barrick Gold (ABX.TO) , opens new tab have all seen incursions recently. Ghana's major corporate miners have intensified their campaign for military protection at mining sites this year. Similar requests have been made in Burkina Faso and Mali, according to three mining executives and an industry analyst, who requested anonymity. "Ideally, we want military presence at all mining operations, but we understand the need to prioritize sites facing consistent attacks while implementing regular patrols at others," said Ahmed Dasana Nantogmah, chief operating officer of Ghana's Chamber of Mines. Industry leaders met government officials in mid-April to press their case, with discussions yielding "positive" results, said Nantogmah. Ghana's government did not respond to requests for comment. Ghanaian authorities want miners to cover deployment costs, estimated at 250,000 Ghana cedis ($18,116) per contingent daily of under 50 personnel, said two mining executives who were part of the negotiations. Ghana's mining sector regulator, the Minerals Commission, is taking a technological leap forward, establishing an AI-powered control room to analyze data from 28 drones deployed to illegal mining hotspots. The system includes trackers on the excavators and a control system that can remotely disable excavators operating outside authorized boundaries. "This is a fight we can win with technology if we allow full deployment," says Sylvester Akpah, consultant for Ghana's mining sector regulator's drone surveillance and AI-powered project. https://www.reuters.com/world/africa/gold-prices-surge-west-africa-mine-operators-launch-drones-detect-wildcat-miners-2025-06-23/

2025-06-23 06:07

DENVER June 23 (Reuters) - Utilities in the developed world are stressing over how to keep up with demand from data centres and artificial intelligence searches. But globally, keeping people cool is likely to be a much bigger drain on electricity grids and a more pressing power sector challenge. Worldwide, data centres and air conditioners are both projected to triple their electricity use over the coming decade, and will severely test utilities that are already under strain from aging grids and lengthy backlogs for new supply. Sign up here. Indeed, electricity demand from data centres is projected to rise by roughly 800 terawatt hours (TWh) by 2035, from around 416 TWh in 2024, according to the International Energy Agency (IEA). That is enough to power around 75 million American homes for a year, according to the U.S. Energy Information Administration (EIA). Global demand for cooling systems, however, is set to rise by around 1,200 TWh by 2035, or nearly as much electricity as the entire Middle East consumes annually, data from think thank Ember shows. Importantly, the location of demand growth also differs significantly between the two drivers, as does the consequences of failure to meet this spike. Most data centre expansions are set to be within developed economies with modern power networks, and increased demand will primarily come from processing search requests for businesses and social media applications. In contrast, the vast majority of the demand growth for air conditioning is set to occur in emerging economies where many communities already face the prospect of heat-related deaths and illness within already fragile energy systems. Increased deaths and human suffering, the likely outcome of power system shortfalls in the developing world, are of a different order of magnitude than the risk of slower search results and economic drag that could result from failure to boost power supplies for data hubs. BUILDING IMPACT Climate change is leading to more frequent, more intense and more prolonged heatwaves across the world, but especially in developing regions such as South and Southeast Asia where high humidity levels can amplify the impact of heat stress. "A single heatwave - even one lasting just a few days - causes tens of thousands of excess deaths in India," according to a report published in April by India's Centre for Science and the Environment. To combat the effects, new homes and offices across warm climate countries are scaling up the number of cooling units they contain. And many of these areas are already undergoing a building boom, magnifying the amount of space needing to be cooled. In 2022, around 36% of all households were estimated to possess some air conditioning equipment, according to the IEA. By 2035, that share is expected to jump to 50%, and then to 60% by 2050. To power that expanding footprint, the installed capacity of cooling equipment is set to surge from around 850 gigawatts (GW) in 2022 to 1,750 GW by 2035, and to 2,700 GW by 2050, IEA data shows. INDIA-LED India, which already has the world's largest population and is expected to have the third largest economy by 2035, is expected to be the main driver of cooling system demand in the coming decades. Currently, around 5% of the world's stock of air conditioners is in India, or around 110 million units of the roughly 2.4 billion in use globally, per the IEA. By 2035, India's share of the global air conditioner stock is set to rise to 13% (to nearly 500 million units), and then to more than 1.1 billion units by 2050. Indonesia, another fast-growing populous nation prone to hot and humid spells, is set to treble its air conditioner count by 2035, while Brazil, Mexico and the Middle East are all set to more than double it. WIDENING LOADS Power firms in all regions have their work cut out in ramping up electricity supplies to match the projected demand growth from both data centres and cooling systems. But again, the challenges faced in addressing these two demand drivers will differ based on where the power is needed. In the United States and Europe, most data centre expansions are taking place close to established generation sites, so that server farms can tap uninterrupted power and avoid transmission delays. In developing economies, many of the new cooling systems are within new multi-story apartment buildings or on previously undeveloped land, meaning that power suppliers have to vastly expand their geographic reach while also boosting volumes. Needing to rapidly increase both the scope and scale of electricity production will likely expand the use of coal-fired power in India, Indonesia and elsewhere, which will generate pollution that may further accelerate warming trends. But the sheer magnitude of energy demand growth ensures that fossil fuels alone will not be able to meet it, and that supplies from a multitude of power sources will have to be deployed. This "all of the above" approach, in turn, means that power from clean energy and renewable sources should gain a growing share of the generation mix over time, potentially squeezing out high polluting fuels from electricity production. But in the near term, the fossil fuels burned to meet the rising demand for power will only increase. The need to keep people safe and comfortable as temperatures keep climbing will thus only exacerbate future heat stress, putting ever more pressure on strained electrical grids. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/business/energy/forget-ai-keeping-cool-is-bigger-power-sector-problem-2025-06-23/

2025-06-23 05:57

SINGAPORE, June 23 (Reuters) - Global shares slipped on Monday while oil prices briefly hit five-month highs and the dollar firmed as the world held its breath to see if Iran would retaliate against U.S. attacks on its nuclear sites. Market reaction to the weekend escalation of the conflict in the Middle East has been subdued so far as investors remain in wait-and-see mode. Sign up here. Here are some comments from market analysts: CAROL KONG, CURRENCY STRATEGIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY: "The price action in response to the escalating Middle East conflict has been muted so far as markets wait and see how Iran responds. Judging by the small fall in FOMC rate cut pricing by year-end, there are more worries about the positive inflationary impact of the Middle East conflict than the negative economic impact. The currency markets will be at the mercy of comments and actions from the Iranian, Israeli and U.S. governments. The risks are clearly skewed to further upside in the safe haven currencies if the parties escalate the conflict." CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE: "Markets appear to be treating the U.S. strikes on Iran as a contained event for now, rather than the start of a broader war. The muted haven flows suggest investors are still assuming this is a one-off escalation, not a disruption to global oil supply or trade. "Markets may be responding not to the escalation itself, but to the perception that it could reduce longer-term uncertainty. If Iran’s nuclear capabilities are seen as meaningfully set back, some investors may interpret that as a de-escalation in disguise — a geopolitical risk removed, rather than added. "That said, any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively." PRASHANT NEWNAHA, SENIOR ASIA-PACIFIC RATES STRATEGIST, TD SECURITIES, SINGAPORE: "The market reaction to weekend developments has been muted to state the least. The price action implies this will be a short-lived conflict, that escalation will ultimately lead to de-escalation." SHOKI OMORI, CHIEF DESK STRATEGIST, MIZUHO SECURITIES, TOKYO: "On Monday, in light of weekend geopolitical risk events in the Middle East, market participants adopted a wait-and-see stance. Although the market initially anticipated a bull-flattening of the JGB curve following last week's unexpectedly large reduction in 20-year bond issuance, muted movements in U.S. interest rates, combined with a shift in sentiment toward dollar buying rather than selling, made it challenging for investors to take decisive positions." VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OCBC, SINGAPORE: "Much depends on what Iran will do next, but the shock and awe of the US attack and the warning from Trump not to retaliate or suffer significant consequences, may prevent Iran’s leaders from responding aggressively." "Investors should prepare for more volatility in the coming days, and possibly even weeks, given the ongoing Middle East crisis and uncertainty about Trump’s tariff policy. However, these developments may not be the end of the global equity bull market as long it doesn’t result in sharply higher inflation and cause a global recession. "There is scope for safe havens like gold to continue rising as global uncertainties are likely to remain a fixture, and global central banks continue to diversify away from their US dollar holdings towards gold. We see gold rising to US$3,900/ounce over a 12-month horizon." https://www.reuters.com/world/middle-east/analysts-react-markets-brace-iran-response-us-attack-2025-06-23/

2025-06-23 05:47

Iran issues stark warning to Trump US dollar up 0.6% against its peers Fresh record high for gold not on immediate horizon, analyst says June 23 (Reuters) - Gold edged higher on Monday as Iran-Israel tensions lifted safe-haven demand, though gains were limited by a stronger dollar, while markets closely watched for any Iranian response to U.S. strikes on its nuclear sites. Spot gold was up 0.1% at $3,369.80 an ounce, as of 1211 GMT. U.S. gold futures were steady at $3,385.90. Sign up here. "Continued and multiple geopolitical uncertainties will likely continue to underpin (gold prices)," said Ole Hansen, head of commodity strategy at Saxo Bank "The prospect of a Fed rate cut delay amid higher energy prices potentially strengthening the dollar calls for patience with a fresh record high not on the immediate horizon." The dollar firmed 0.6% against its peers, limiting gains for gold as it makes the metal more expensive for holders of other currencies. Iran and Israel traded air and missile strikes as the world braced for Tehran's response to the U.S. attack on its nuclear sites and U.S. President Donald Trump raised the idea of regime change in the Islamic Republic. Iran vowed to defend itself a day after the U.S. dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. The U.S. bombing of Iran's nuclear sites injected fresh uncertainty into the outlook for inflation and economic activity at the start of a week chock-full of new economic data and central banker commentary, including two days of Congressional testimony from Federal Reserve Chair Jerome Powell. Last week, the U.S. central bank held interest rates steady, but slowed its overall outlook for rate cuts in response to a more challenging economic outlook. Investors are currently anticipating 50 basis points worth of Fed rate cuts by the end of this year. Bullion tends to perform well in low-interest-rate environments and during periods of uncertainty. Elsewhere, spot silver rose 0.3% to $36.12, platinum rose 2.1% at $1,292.03, while palladium gained 2.7% to $1,072.42. https://www.reuters.com/world/india/gold-subdued-dollar-gains-markets-await-iran-response-2025-06-23/

2025-06-23 05:46

LATEST DEVELOPMENTS: Iran's missile attack on US base in Qatar causes no injuries Trump praises Iran's advance notice, urges peace with Israel Oil prices drop 7% DOHA/ISTANBUL/TEL AVIV, June 23 (Reuters) - Iran launched a missile attack on an American air base in Qatar on Monday that caused no injuries, and President Donald Trump dismissed it as a "weak response" to U.S. attacks while urging Iran and Israel to make peace as the conflict entered its 12th day. The attack on Al Udeid Air Base in neighbouring Qatar threatened to widen a conflict that began on June 13 with an Israeli strike on Iran targeting its nuclear programme and ballistic missiles. Sign up here. Iran had threatened to retaliate against the United States after U.S. bombers dropped 30,000-pound bunker-busters on Iranian underground nuclear facilities at the weekend, joining Israel's air war against Iran, and Trump had raised the possibility of the Iranian government being toppled. "We did not assault anyone, and we will never accept being assaulted by anyone," Iran's Supreme Leader Ayatollah Ali Khamenei said in a statement. "We will not submit to anyone’s aggression – this is the logic of the Iranian nation." Iran gave advance notice to the U.S. via diplomatic channels hours ahead of the attack, as well as to Qatari authorities. Trump seized on that as a positive sign. "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured," Trump wrote on his Truth Social media site. "Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same." He said Iran fired 14 missiles at the air base, calling it "a very weak response, which we expected, and have very effectively countered." "I am pleased to report that NO Americans were harmed and hardly any damage was done," Trump wrote. "Most importantly, they’ve gotten it all out of their 'system,' and there will, hopefully, be no further HATE," Trump wrote. Iran's handling of the attack recalled earlier clashes with the United States and Israel, with Tehran seeking a balance between saving face with a military response but without provoking a cycle of escalation it can't afford. The country's Foreign Minister Abbas Araqchi said Iran was ready to respond again in case of further action by the United States, according to a statement posted by the ministry's account on Telegram. The attack strained Iran's relationship with its Arab neighbors: Qatar condemned it, as did Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait and Iraq. "There are deep ties between the two states (Iran and Qatar) and the two nations, but the attack undoubtedly calls for a genuine meeting and a clear stance," Qatari foreign ministry spokesperson Majed Al Ansari said at a press conference. Israel said it carried out its most extensive wave of attacks on Tehran ever on Monday. Targets included a Tehran prison where Iran's leadership holds political opponents, in a renewed demonstration of its willingness to strike beyond its previously stated military and nuclear targets and attack key pillars of Iran's ruling system. Despite Iran's threats to challenge oil shipments from the Gulf, oil prices fell 7% in volatile trading , suggesting traders doubted the Islamic Republic would follow through on any action that would disrupt global supplies. Qatar, situated just across the Gulf from Iran, reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday. Iran's foreign minister met Russian President Vladimir Putin in Moscow as Tehran sought backing from one of its last major power friends for its next steps. STRIKING 'REGIME TARGETS' Israel made clear that its strikes on Evin prison and other targets in Tehran were intended to hit the Iranian ruling apparatus broadly, and its ability to sustain power. Iran's IRIB state broadcaster released video showing rescue workers combing the flattened wreckage of a building at the prison, carrying a wounded man on a stretcher. The Mizan news outlet of Iran's judiciary said urgent action was being taken to protect the health and safety of inmates there. Evin has long been Iran's primary prison for political detainees and people accused of espionage, as well as the site of executions that remain strong memories for the opposition. Several high-profile foreign prisoners are also held there. Israel's military said it had also struck Revolutionary Guard command centres responsible for internal security in the Tehran area. The military was "currently striking, with unprecedented force, regime targets and governmental repression bodies in the heart of Tehran," Defence Minister Israel Katz said in a statement. Much of Tehran's population of 10 million has fled after 10 days of bombing. Tasnim News Agency reported a strike at an electricity feeder station in the Evin neighbourhood. Power company Tavanir reported some areas in the capital experienced electricity cuts. LIMITED OPTIONS Since the U.S. joined Israel's campaign by dropping massive bunker-buster bombs on Iranian nuclear production sites on Sunday morning, Iran has repeatedly threatened to retaliate. "Mr Trump, the gambler, you may start this war, but we will be the ones to end it," Ebrahim Zolfaqari, spokesperson for Iran's Khatam al-Anbiya central military headquarters, said on Monday in a recorded, English-language video statement. The Trump administration maintains that its aim is solely to destroy Iran's nuclear programme, not to open a wider war. But in a social media post on Sunday, Trump spoke of toppling the hardline clerical rulers who have been Washington's principal foes in the Middle East since Iran's 1979 Islamic Revolution. Five insiders with knowledge of the discussions said efforts had been ramped up to anoint a successor for Iran's 86-year-old supreme leader, Ayatollah Ali Khamenei. His son Mojtaba, 56, and Hassan Khomeini, 53, grandson of the revolution's founder Ayatollah Ruhollah Khomeini, are now seen as the frontrunners, they said. Americans are anxious over a brewing conflict between the U.S. and Iran and worry the violence could escalate after President Donald Trump ordered the bombing of Iranian nuclear facilities, according to a Reuters/Ipsos poll that closed on Monday. https://www.reuters.com/world/middle-east/iran-weighs-retaliation-against-us-strikes-nuclear-sites-2025-06-23/

2025-06-23 05:46

MUMBAI, June 23 (Reuters) - Expectations of rupee volatility and the cost of hedging against the currency's decline had a muted reaction to worries over a deepening of the conflict in the Middle East after the U.S. struck Iran's nuclear sites over the weekend. The reaction across global markets was relatively muted as investors kept their attention on potential retaliation by Iran. The Indian rupee declined 0.2% on the day to 86.8025 per U.S. dollar, tracking weakness in Asian peers. Sign up here. The currency's 1-month implied volatility, a gauge of future expectations, nudged slightly higher but was hovering near its average over the last two months, signalling that market participants were not yet pricing in the risk of outsized swings. Markets are wagering that "risk of further escalation seems low", a trader at a large private bank said, pointing out to the quick cooling of crude oil prices after an initial jump. Brent crude oil futures rose to a peak of $81.4 per barrel but pared gains to quote up 1.7% at $78.3 per barrel. Dollar-rupee forward premiums, too, reflected limited concern about a sharp depreciation of the rupee. The 1-month forward premium was nearly flat at 11.25 paisa. Far forward premiums also showed a contained reaction. However, as a large oil-importing nation, India remains vulnerable to risks from sharp spikes in oil prices, MUFG said in a note. "We would likely revise our USD/INR forecast profile higher if geopolitical risks remain elevated moving forward. Nonetheless, given the weakness already seen in INR, the balance of risks for the currency could be more two-sided." Dampened risk appetite also weighed on Asian currencies and equities across the board. India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty (.NSEI) , opens new tab, fell about 0.8% each. The Korean won led losses among Asia FX with a 0.9% decline. https://www.reuters.com/world/india/rupee-volatility-forwards-unruffled-by-middle-east-flare-up-2025-06-23/