2024-09-13 23:24

NEW YORK, Sept 13 (Reuters) - Marathon Petroleum (MPC.N) , opens new tab and the Teamsters union, which represents striking refinery workers in Detroit, will meet with a federal mediator to negotiate a new contract, the company said Friday. It did not specify when the meeting would happen. “The next meeting with Marathon Petroleum, the union, and a federal mediator is scheduled,” a Marathon spokesperson said. Over 200 Teamsters members working at Marathon’s Detroit refinery walked off their jobs on Sept. 4 after months of pay- and safety-related negotiations with the company stalled. The workers called for an economic strike following nine months of negotiations and mediation. The prior contract expired in January. The Detroit refinery started planned turnaround activities earlier this month. Teamsters Local 283 represents 273 workers at the Detroit refinery, 95% of whom authorized the strike. The union did not immediately respond to requests for comment. Sign up here. https://www.reuters.com/markets/commodities/marathon-teamsters-meet-with-mediator-negotiate-contract-2024-09-13/

2024-09-13 23:08

LAGOS, Sept 13 (Reuters) - A Nigerian presidential committee announced on Friday that state-owned oil company NNPC Limited will distribute gasoline from the 650,000 barrels-per-day Dangote Refinery to the local market, ending the deadlock that had stalled distribution. The $20 billion refinery, built by Nigerian billionaire Aliko Dangote in Lagos, began processing gasoline last week. However, disagreements over offtake rights and pricing had delayed distribution. "I am glad to announce that all agreements have been finalised, and the first batch of Premium Motor Spirit (Gasoline) will begin loading on Sunday," Zacch Adedeji, head of Nigeria's tax authority, said. Adedeji said that in exchange for crude oil, Dangote will supply gasoline and diesel of equivalent value to the domestic market, with transactions settled in the local naira currency. The Nigerian government previously said it would facilitate the sale of crude to Dangote in naira. While Dangote's diesel, which has primarily been exported, will now be sold to local fuel traders in naira, NNPC will have exclusive rights to lift gasoline and sell locally both in bulk to fuel traders and at its gas stations for now. Currently, only about 5% of local fuel traders are purchasing products from the Dangote Refinery, which has limited its sales to just 29 tankers of diesel per day, an executive at the refinery said on Thursday. The executive added that local fuel traders are struggling with the refinery’s retail pricing, which they claim is negatively impacting their businesses. Sign up here. https://www.reuters.com/business/energy/nigerias-nnpc-distribute-dangote-refinery-gasoline-under-government-agreement-2024-09-13/

2024-09-13 22:02

Mine would supply over a quarter of US copper needs Strong Native American, environmental group opposition Supreme Court appeal filed to block mine access 2024 presidential election outcome could determine mine's future Arizona is one of a few states likely to decide the election Sept 12 (Reuters) - Native American opposition to Rio Tinto (RIO.L) , opens new tab(RIO.AX) , opens new tab and BHP's (BHP.AX) , opens new tab Resolution Copper mine could prove crucial for the 2024 U.S. presidential vote in the battleground state of Arizona, underscoring the high tension over where best to extract critical minerals for the energy transition. The mine would, if built, supply more than a quarter of America's appetite for copper and be a key part of Washington's efforts to eat into China's role as the world's largest copper processor and consumer. The U.S. imports nearly half of its copper needs, according to the U.S. Geological Survey, and its copper mine production has dipped 11% since 2021. There are only two domestic copper smelters. Yet the underground Resolution mine would cause a massive crater that would swallow a religious site where Arizona's San Carlos Apache worship. That has fueled strong opposition from all but one of the state's 22 Native American tribes, as well as the National Congress of American Indians. An appeal was filed on Wednesday asking the U.S. Supreme Court to block Rio and BHP's access to the land, which Congress and President Barack Obama approved in 2014 after it was added at the last minute to a must-pass military funding bill with the condition that an environmental report be published. President Donald Trump published that report in 2021, days before leaving office, a move that was reversed two months later by his successor, Joe Biden. It is unclear whether the Supreme Court will take the case and, if it does, how or when it could rule. Whoever wins the Nov. 5 U.S. election will be able to either approve the mine or keep its development essentially frozen, the step that Biden took after Arizona's 400,000 Native Americans - nearly 5% of the state's population - helped deliver him and then-running mate Kamala Harris the state and thus helped him win the White House in 2020, according to exit polling that year. In the 2024 presidential race, Republican Trump narrowly leads Harris, the Democratic nominee, among registered Arizona voters in a Reuters/Ipsos poll published on Aug. 29. Arizona is one of a handful of states likely to decide the election. Native Americans have tended to vote Democratic in the past, but many tribes in the U.S. Southwest have cited climate change and the economy as key issues for them this year. The San Carlos Apache and others are now flexing their electoral muscle once again, pushing Harris to block the mine if elected. "We definitely expect Native votes to be the determining factor in Arizona," said Wendsler Nosie, head of the Apache Stronghold, a nonprofit group comprising of the San Carlos Apache and conservationists. "All Native people are watching this issue, because this sacred space is the heart of who we are." The Harris campaign did not respond to requests for comment. Harris in 2020 told Arizona's Native American tribes they would have a "seat at the table" if she and Biden were elected. The San Carlos Apache then made a successful appeal to Harris in 2021 to block Resolution, tribal officials told Reuters. Harris has said little about critical minerals on the 2024 campaign trail, and her aides have told Reuters she intends to be strategically ambiguous on energy-related issues. In a statement to Reuters, Halee Dobbins, the Republican National Committee's Arizona communications director, said Trump sees energy independence as a key concern for Native Americans and believes "Democrats have been hard at work destroying our energy supply," although she did not directly address the Resolution project. "Team Trump in Arizona has been dedicated to uplifting the Native American people and addressing the unique challenges facing their communities," said Dobbins. Trump has been supportive of most mining projects and said he would take steps that would support Antofagasta's (ANTO.L) , opens new tab controversial Twin Metals project in Minnesota "within minutes" of a second inauguration. Biden and Harris killed that project in 2022. Some members of Trump's campaign have spoken in favor of Resolution, although he has not yet spoken about it publicly in this election cycle. That largely pro-mining stance from Trump - and Harris' support for the Inflation Reduction Act and other climate-linked policies - has not gone unnoticed in the state, tribal activists say. "Mobilizing the Native vote is so important in Arizona," said Gunes Murat Tezcür, a political scientist at Arizona State University. The Resolution project "is going to be a big issue for the San Carlos Apache." DIALOGUE Rio Tinto, which plans to keep Resolution's copper in the U.S. if the mine is built, said it has been trying to expand ties with the state's tribes, including by supporting food banks after recent deadly wildfires. Fifty of Resolution's employees are San Carlos Apache. "We continue the dialogue and agreement-making with tribes," said Vicky Peacy, who runs Resolution for Rio. The company declined to comment on the U.S. election. BHP, which owns 45% of the project to Rio Tinto's 55%, declined to comment. Steve Trussell, head of the Arizona Mining Association trade group, said he worries U.S. imports of copper will increase if Resolution is not developed and noted that China has already begun blocking exports of other critical minerals used in the climate fight. "We'll fall further behind on clean energy and addressing climate change, which would disproportionately hurt Arizona's small towns and Native American communities more than most," he said. It is that tension that is front of mind for Mila Besich, the Democratic mayor of Superior, Arizona, the town closest to the Resolution project. Besich, who has endorsed Harris but also supports Resolution, has been lobbying Harris' team to support the mine. The same 2014 law that approved the federal land swap with Resolution also gives Superior access to land for economic-development projects, a key appeal for Besich in a town with a 45% unemployment rate. Besich said she has not received any commitments from the Harris campaign yet, but plans to keep pressing the issue in the coming weeks. "I'm very hopeful that as we ramp up this campaign, that the Resolution project gets the attention it deserves," said Besich. "It's starting to resonate just how important it is." Sign up here. https://www.reuters.com/markets/commodities/arizonas-battle-over-crucial-copper-mine-poised-sway-us-election-2024-09-12/

2024-09-13 21:43

Sept 13 (Reuters) - Suriname state-oil company Staatsolie on Friday said it signed production sharing contracts with PetroChina (601857.SS) , opens new tab for two offshore oil and gas blocks in the South American country. By signing the contracts, PetroChina has exploration and development rights for shallow water blocks 14 and 15 where Staatsolie has a 30% participation. The blocks were part of a bidding round launched last year. The blocks are in the eastern part of the Suriname-Guyana basin and border Block 52, where Malaysia's Petronas and U.S. oil giant Exxon Mobil (XOM.N) , opens new tab previously disclosed oil and gas discoveries. Block 14 has water depths of 50 to 75 meters and Block 15 from 75 to 150 meters. With the two newest production sharing contracts, about 46% of Suriname's offshore area is now under contract, Staatsolie said. Sign up here. https://www.reuters.com/business/energy/surinames-staatsolie-signs-energy-production-sharing-contracts-with-petrochina-2024-09-13/

2024-09-13 21:31

Putin suggested banning certain strategic exports to West Russian officials and managers caught unaware by surprise comments Many Russian commodities already subject to Western import restrictions Potential ban could hurt major Russian firms such as Rostec, Rosatom, and Nornickel Kremlin spokesman Peskov emphasizes hypothetical nature of proposal MOSCOW, Sept 12 (Reuters) - Russian officials and managers are perplexed by President Vladimir Putin's surprise threat to limit exports of strategic commodities in response to Western sanctions, and wonder if it can be realised without hurting Russia more than the West. Putin made the suggestion 23 minutes into a routine government meeting on Wednesday, asking Prime Minister Mikhail Mishustin to come up with some ideas that would not harm Russia's interests. Yet many of Russia's commodities such as oil, gas, nickel, titanium, gold and diamonds are already subject to various levels of voluntary or mandatory import restrictions or even bans imposed by the West itself. Russian government officials and company executives were caught off guard. "Everyone is in a state of shock," said a source in one of the affected companies, who spoke on condition of anonymity due to the sensitivity of appearing to criticise the president. "This initiative came really out of the blue." Another company source said: "It's like shooting yourself in the foot." Cutting exports of uranium, nickel and titanium - which Putin mentioned explicitly - would cut the foreign currency earnings of Russia's biggest firms including state-owned industrial conglomerate Rostec, state nuclear monopoly Rosatom and Nornickel, the world's top producer of refined nickel. Together, they employ about a million people, and their revenues have already been affected by Western sanctions. Nornickel's (GMKN.MM) , opens new tab first-half profit fell by 22% as it tries to pivot its exports to Asia. It has described the combination of low nickel prices and Western sanctions as a "perfect storm". The global market price of nickel did blip upwards on Putin's comments - but the current wealth of supply means it is far below historic highs. A Russian government source, who also spoke on condition of anonymity, said any ban should spare so-called "friendly" countries including China, Russia's major trading partner. URANIUM RESTRICTIONS COULD HURT WEST The source stressed that it would take some time for the government to develop the plan - and that an order from the president to do so had yet to reach the government. Another source close to the government added that Putin had "asked for a plan to be worked out, not implemented". Major Russian commodities producers declined to comment. Russia and the West are entering a new level of confrontation over the Ukraine war and Russia is pondering ways to respond to what it says is almost certain Western approval for Ukraine to strike deep into Russia using Western weapons. Putin said that if Russia went ahead, the measure would not be limited to uranium, nickel and titanium. He noted that Russia has 22% of the world's natural gas reserves, 23% of gold reserves, and 55% of global diamond reserves. Uranium may be the one commodity where restrictions could genuinely hurt the West. Russia accounted for 27% of the enriched uranium supplied to U.S. commercial nuclear reactors last year. While the U.S. has in theory banned imports of the fuel from Russia, it also provided for waivers through 2027 as it expands its own enrichment facilities. Yet Europe has largely weaned itself off the Russian gas it used to depend on. Group of Seven and European Union bans on imports of Russian-origin diamonds forced Moscow to buy up diamonds from its sanctions-hit producer, Alrosa (ALRS.MM) , opens new tab. And all Russia's major gold producers are already under Western sanctions. Meanwhile, Russia's largest titanium sponge maker VSMPO-AVISMA, partly owned by Rostec, has been struggling to find replacements for supplies of titanium concentrate from Ukraine, with which Russia is at war. Putin himself emphasised that restrictions would not happen "tomorrow", and that they must not harm Russia's interests. On Friday, Kremlin spokesman Dmitry Peskov stressed the as-yet hypothetical nature of the idea. "There are no specifics yet, it was a proposal to think about it without harming ourselves, without damaging our own interests," he said. "They (the government) will consider it." Sign up here. https://www.reuters.com/markets/europe/putins-commodities-ban-threat-puzzles-russian-firms-officials-2024-09-13/

2024-09-13 21:28

Sept 13 (Reuters) - A strike beginning Friday by more than 30,000 of Boeing's U.S. West Coast factory workers will make it harder for the planemaker to meet a 737 MAX production target and stabilize its supply chain, CFO Brian West said on Friday. West also told the Morgan Stanley Laguna Conference he expects third-quarter margins from the company's defense and space unit to be negative, similar to those in the second quarter. Workers from Seattle and Portland, Oregon, who produce the MAX and other jets walked off the job after overwhelmingly rejecting a contract deal due to demands for higher pay. The workers' first strike since 2008 comes as Boeing is under heavy scrutiny from U.S. regulators and customers after a door panel blew off a 737 MAX jet mid-air in January. West said Boeing had made progress towards ramping up production of its strongest selling jet back to 38 a month by year's end, despite earlier skepticism from rating agencies over the target. "We've been making good progress on stabilizing production and preparing for that 38 per month by the end of the year. Now, obviously that's going to take longer," West said. West, however, would not comment on specifics related to the target, which depends on the duration of the strike. The strike is creating more uncertainty and concern for suppliers of parts and components for programs like the 737 MAX. Many were already having difficulty planning production due to Boeing’s repeated changes to internal forecasts for suppliers. If the stoppage continues it will have significant implications for Boeing's suppliers, said John Donigian, a supply chain specialist at rating agency Moody’s. "Boeing’s suppliers will see impacts with delayed orders and financial strain due to the ripple effect across the supply chain," Donigian said. West suggested Boeing would stop taking parts from some suppliers on programs impacted by the strike where the planemaker already has ample inventory, but would keep purchasing from suppliers who are behind in their deliveries. The company's 787 widebody jet is not impacted, as it is built in South Carolina by a non-unionized workforce. Asked about supply chain, West said for non-787 programs, if the supplier is not behind and the company has enough stock, "you know, don't deliver anymore." He said this messaging is "happening overnight and as we speak." In a note to clients, Jefferies said composite specialist Hexcel (HXL.N) , opens new tab would be among the most exposed suppliers. Hexcel was not immediately available for comment. Joe Buccino, spokesperson for key Boeing supplier Spirit AeroSystems (SPR.N) , opens new tab which produces the 737 MAX fuselage, said “We are committed to supporting all our customers and will remain close to Boeing at this time.” Sign up here. https://www.reuters.com/business/aerospace-defense/boeing-strike-poses-challenge-max-targets-supply-chain-cfo-says-2024-09-13/