2024-09-17 11:58
JOHANNESBURG/PARIS, Sept 17 (Reuters) - Sibanye-Stillwater (SSWJ.J) , opens new tab said it is studying New Caledonia's Prony Resources as a potential source for nickel it needs to manufacture battery-grade material at its Sandouville plant in France. The Johannesburg-based precious metals producer is also looking to Indonesia as another potential source for mixed hydroxide precipitate to enable it to produce material for electric vehicle batteries at Sandouville, James Wellsted, a spokesperson for the miner, said on Tuesday. Prony is part of the loss-making nickel industry in New Caledonia and it has been seeking investors for the business, which comprises a nickel mine and hydrometallurgical processing plant. While Prony has said it may sell a majority stake, Wellsted said Sibanye is not looking at acquisitions at the moment. Sibanye is studying plans to convert the Sandouville plant to start processing battery grade nickel as a part of a push into green energy. To advance the Sandouville plant conversion, Sibanye needs to secure supplies for the feedstock first, Wellsted said. "Part of the feasibility is trying to identify where you're going to get the mixed hydroxide precipitate (MHP), which is the feedstock for the battery metal production at Sandouville," he said. A team from Sibanye is currently in New Caledonia to study Prony as a potential supplier, he added. Prony produces MHP, an intermediate nickel product that is suitable for battery supply chains, and the firm previously announced a contract to supply electric vehicle maker Tesla. Local newspaper Les Nouvelles Caledoniennes reported on Monday that Sibanye is in advanced talks to acquire Prony, citing a source close to the matter. The report came after Sonia Backes, the head of New Caledonia's southern province where Prony Resources is located, told public broadcaster La 1ere Nouvelle-Caledonie last week that a potential investor was in talks with Prony. A spokesperson for Prony declined to comment. The struggling New Caledonian nickel sector this year battered by rioting in the French-controlled southern Pacific territory. Prony's operations have been halted since May due to the unrest. Sign up here. https://www.reuters.com/markets/commodities/sibanye-considers-sourcing-nickel-french-plant-new-caledonias-prony-2024-09-17/
2024-09-17 11:48
NEW DELHI, Sept 17 (Reuters) - ArcelorMittal's India joint venture has called on New Delhi to remove the import tax on liquefied natural gas (LNG) for steelmaking to help the company cut its production costs and meet decarbonisation goals, a letter seen by Reuters showed. Steel production accounts for about 8% of global carbon emissions. Replacing coal as a fuel source with LNG can remove some of them, but increases production costs. "To meet both domestic and international steel demands, we propose implementing a nil rate of duty on LNG imports for steel manufacturing," ArcelorMittal Nippon Steel India (AM/NS India) said in a letter dated Sept. 2 to the federal finance ministry. India, the world's second biggest crude steel producer, levies a 2.5% basic customs duty and an additional 0.25% social welfare tax on LNG. If the government concedes to AM/NS India's requests, other steelmakers such as JSW Steel (JSTL.NS) , opens new tab and Tata Steel (TISC.NS) , opens new tab would also benefit. The federal finance ministry and AM/NS India did not reply to Reuters' emails requesting comment. In a report released this month, the ministry of steel noted that natural gas was "significantly expensive". India's steel industry accounts for 10%-12% of its total emissions, with 2.54 metric tons of carbon dioxide generated for every ton of steel. This exceeds the global average of 1.91 metric tons for every ton of crude steel. India, the world's third biggest emitter of greenhouse gases, has pledged to achieve a net zero carbon emission target by 2070. New Delhi also aims to raise the share of natural gas in its energy mix to 15% by 2030 from around 6% now. AM/NS India also urged the government to include natural gas in the Goods and Services Tax (GST) regime to make prices cheaper and more uniform across the country. "This situation (LNG being out of the purview of GST) potentially drives end users to prefer imported products over costlier domestically sourced goods, thereby undermining the 'Make in India'," it said, referring to India's ambitions plans to make it a global manufacturing hub. By introducing GST, India replaced about 20 federal and state taxes to unify India's around $3.2 trillion economy. The GST Council, comprising state finance ministers and chaired by the federal finance minister, needs to approve and set tax rates for LNG. Sign up here. https://www.reuters.com/business/energy/arcelormittals-india-jv-seeks-duty-free-lng-imports-letter-shows-2024-09-17/
2024-09-17 11:44
MOSCOW, Sept 17 (Reuters) - OFS Technologies, formerly part of Baker Hughes' (BKR.O) , opens new tab Russian assets, said on Tuesday it had been increasing the number of wells so that Russia would be ready to boost oil production when necessary, Interfax news agency reported. U.S. oilfield services provider Baker Hughes announced in August 2022 it had sold its oilfield services business in Russia to the local management team, following Western sanctions against the country over the invasion of Ukraine. "We are increasing the inventory of wells so that the country is ready to increase production at the right time," OFS Technologies's President David Gadzhimirzayev told Interfax. He also said that the decision of the group of leading oil producers, including Russia, known as OPEC+, to reduce oil production has had little impact on the company's operations. "Lower production does not always lead to lower drilling as exploration for new reserves continues," he said, according to Interfax. OPEC+ earlier this month agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, adding that it could further pause or reverse the hikes if needed. Sign up here. https://www.reuters.com/markets/commodities/russias-ofs-technologies-boosts-oil-wells-count-ensure-output-hike-potential-ifx-2024-09-17/
2024-09-17 11:24
More than a third of Ghana's cocoa output lost to smuggling Ghana's 2023/24 output set to be lowest in 20 years Military to join anti-smuggling task force ACCRA, Sept 16 (Reuters) - Ghana has lost more than a third of its 2023/24 cocoa output to smuggling, a top official from the cocoa marketing board (Cocobod) told Reuters, as low local prices and payment delays push some farmers to sell to increasingly sophisticated trafficking rings. Poor harvests in Ghana and Ivory Coast, the world's second largest and largest producers, have pushed markets into a four-year supply deficit, driving up global cocoa and chocolate prices this year. But cocoa fetches more in Ivory Coast and Togo than in Ghana because of a more stable CFA franc currency and a less regulated sector. Ghana had produced 429,323 metric tons of cocoa by the end of June from the start of the season in September, less than 55% of the average at the same point in previous seasons and putting 2023/24 output on track for its biggest fall in more than two decades. Charles Amenyaglo, director of special services at Cocobod, who leads the board's anti-smuggling task force, said smuggling losses more than tripled in 2023/24. "Conservatively, I will say we lost 160,000 tons," he said, adding that the task force also intercepted about 250 tons, up from 17 tons in 2022/23. "The data is alarming," said Abubakar Omae, general secretary of Ghana's cocoa and coffee farmers association. While more than 10 people have been sentenced to between three months and 10 years in prison for smuggling this year, Amenyaglo said Ghana's military will soon be deployed to tackle smugglers. FUEL TANKERS, OIL DRUMS AND TIPPER TRUCKS Smuggling rings, which offer farmers higher prices, began to take hold in 2022, when Ghana was at the height of an economic and currency crisis. Amenyaglo said significant quantities of cocoa were crossing into Togo, Burkina Faso and even Mali. "We've seen cocoa in tipper trucks covered by quarry chippings and in drums disguised as palm oil," he said. "We've seen pontoon boats carting cocoa...but the shocker is when we saw a fuel tanker loaded with cocoa. The 'Don't tamper' seal was still on." Cocobod has failed to pay for beans on time during the season due to problems with the syndicated loan it uses to finance purchases. "This comes back to (the) money issue ... If we're liquid and actively on the field, smuggling can be curtailed," said Samuel Adimado, president of the Ghanaian cocoa buyers' group. Ghana opened the 2024/25 season earlier than usual, with a new funding model and a 45% increase in the farmgate price. Farmers are hopeful the changes will help discourage smuggling, though they fear a weakening currency will erode the price hike. "We've invested a lot to raise cocoa production in Ghana, not for cocoa sectors in Togo or Ivory Coast to blossom," Amenyaglo said. Sign up here. https://www.reuters.com/world/africa/ghana-lost-160000-tons-cocoa-smuggling-202324-season-cocobod-official-says-2024-09-16/
2024-09-17 11:20
Sept 17 (Reuters) - South African coal miner Seriti Resources plans to cut 1,241 jobs to contain costs due to lower prices and persistent rail bottlenecks, the company said on Tuesday, a move the country's biggest mineworker union said it would fight. Privately-owned Seriti is a major coal supplier to South Africa's thermal power stations and also exports some of its output. The planned job cuts would impact workers at Middleburg mines and Klipspruit South-East pit, Seriti said in response to questions from Reuters. Both operations, which employed a combined 5,212 workers as of March 2024, were acquired from South32 (S32.AX) , opens new tab in 2021. The mines "are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability". "These mines continue to be adversely impacted by, amongst others, Transnet under-performance and general market volatility," Seriti said. Coal prices have fallen off record highs above $450 per metric ton reached in 2022 after Russia's invasion of Ukraine, to current levels around $100. South Africa's freight rail operator Transnet continues to struggle to provide adequate services due to shortages of locomotives and spares as well as cable theft and vandalism of its infrastructure, impacting coal exporters such as Seriti. The company said it had on Monday initiated consultations with labour unions under South Africa's Commission for Conciliation, Mediation and Arbitration (CCMA), a statutory body which mediates and certifies outcomes of labour disputes. The National Union of Mineworkers (NUM) said it would fight the latest round of job cuts at Seriti. "The NUM will be embarking on a massive mobilization to try and stop Seriti Resources from undermining unions by retrenching employees willy-nilly," the union said in a statement. Sign up here. https://www.reuters.com/markets/commodities/safrican-coal-miner-seriti-plans-1200-job-cuts-2024-09-17/
2024-09-17 11:07
TSX ends down 0.1% at 23,677.70 Consumer staples sector falls 1.5% Industrials end 0.8% lower Energy rallies 1.5%; oil settles 1.6% higher Sept 17 (Reuters) - Canada's main stock index ended lower on Tuesday, pressured by declines for the industrial and consumer staples sectors, as investors weighed the signal the Federal Reserve could send about the economic outlook if it opts for an oversized rate cut. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 24.37 points, or 0.1%, at 23,677.70, its first decline in five sessions, after notching an all-time closing high on Monday. Markets were leaning toward a half-percentage-point rate cut by the Fed, rather than a quarter-point move, at the expected start of an easing cycle on Wednesday. "The market will be happy with a 50-basis-point cut as long as there's no indication of prolonged or deeper weakness in the economic environment than the market expects," said Kevin Headland, co-chief investment strategist at Manulife Investment Management. The economically sensitive industrials sector fell 0.8% as railroad stocks lost ground. The consumer staples sector was down 1.5%. It was pressured by declines for food retailers, including a drop of 3.2% for the shares of Loblaw Companies Ltd (L.TO) , opens new tab. The Bank of Canada has already begun lowering borrowing costs, moving in 25-basis-point steps. Speculation rose that the central bank would increase the size of its cuts as domestic data showed the annual inflation rate slowing to 2% in August. "Today's figure tilts the scales a touch toward a more aggressive path," Benjamin Reitzes, Canadian rates & macro strategist at BMO Capital Markets, said in a note. Energy was a bright spot, rising 1.5%, as the price of oil settled 1.6% higher at $71.19 a barrel on mounting supply disruptions. Canadian miner First Quantum Minerals (FM.TO) , opens new tab has opened a voluntary retirement scheme to workers at the Cobre Panama mine, two sources familiar with the matter told Reuters. Shares of First Quantum rose 3.8%. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-bets-bigger-fed-rate-cut-2024-09-17/
