2026-01-28 07:16

Vietnam, EU to upgrade diplomatic ties on Thursday EU's Costa visits Hanoi, warns against "coercive trade practices" Both sides aim to boost security cooperation, EU considers tech transfers HANOI, Jan 28 (Reuters) - The European Union and Vietnam want to boost trade and investment in critical minerals, semiconductors and infrastructure, according to a draft joint statement seen by Reuters that is set to be adopted on Thursday as the two sides upgrade diplomatic relations. The eight-page document, still subject to change, says the EU will also explore the possible transfer of defence technology to Hanoi, as both sides seek closer cooperation on "trusted" telecom networks - at a time when Chinese companies have won contracts in Vietnam's 5G development. Sign up here. The statement is scheduled to be signed when the European Council President Antonio Costa meets Vietnam's leaders in Hanoi on Thursday, days after the ruling Communist Party reappointed To Lam as the country's top leader. The two countries will upgrade diplomatic ties to Vietnam's highest level, similar to the United States, China and Russia. An EU-Vietnam free trade agreement entered into force in 2020. While not binding, the document carries political weight and includes indirect criticism of the international strategies of the United States, China and Russia. The European Council declined to comment on the draft document and Vietnam's government did not respond to a request for comment. CRITICAL MINERALS, SEMICONDUCTORS Vietnam has significant but largely untapped deposits of rare earths and gallium. Hanoi has signalled interest in developing processing capacity for rare earths, whose global supply and refining is dominated by China. But progress has been limited, in part because Vietnam lacks the technology to fully exploit its resources. The EU and Vietnam want to promote "trade and investment in goods, services, and technologies that support sustainable mining and processing" for critical minerals, as they eye closer cooperation in the sector, the document said. Vietnam is also a key supplier of tungsten, a hard metal used in defence and electronics, and Western diplomats have warned of the risk of Chinese interest in a major mine in Vietnam. China's foreign ministry did not respond to a request for comment. The draft statement identifies semiconductors as another priority area for deeper cooperation, including supply chains. Vietnam is a major player in chip packaging, testing and assembling, hosting operations by Intel (INTC.O) , opens new tab and Amkor Technology (AMKR.O) , opens new tab among others. Earlier this month Vietnam began building its first semiconductor production facility. Suppliers of ASML (ASML.AS) , opens new tab, the Dutch global leader in chipmaking machines, have moved some production to Vietnam, and the company is exploring expanding its supply chain and supplying potential customers there, the Vietnamese government said earlier this month after a high-level meeting in Hanoi. ASML was not immediately available for comment. 5G, DEFENCE, INFRASTRUCTURE Expanding cooperation on "trusted communications infrastructure" is also a priority, said the document, citing 5G and satellite connectivity. European firms Ericsson (ERICb.ST) , opens new tab and Nokia (NOKIA.HE) , opens new tab are developing Vietnam's 5G network, but last year Hanoi awarded smaller construction contracts to Chinese companies, including Huawei, despite Western concerns about security. Both sides intend to boost security cooperation, while the EU will consider the transfer of "non-sensitive technology and know-how", the document said. EU nations are also interested in investing in Vietnamese infrastructure, including railways, according to the document, as Vietnam wants to build a nationwide high-speed network, its largest-ever project. U.S., CHINA, RUSSIA EU President Costa warned of "coercive trade practices" and "challenges to sovereignty and international law" in an opinion piece published by Vietnam's state news agency on Wednesday. The draft statement reaffirmed support for a "rules-based international order" and for strengthening the World Trade Organization, at a time when the U.S. imposes tariffs and undermines multilateral bodies. It urged respect for "territorial integrity" and called for a "just and sustainable peace in Ukraine", which is under attack from Russia, a long-time close partner of Vietnam. It also said the two countries agreed to consider deeper maritime security cooperation, as they called for stability in the South China Sea, where China's territorial claims conflict with Vietnam's. https://www.reuters.com/world/asia-pacific/eu-vietnam-agree-boost-work-minerals-chips-trusted-5g-draft-document-says-2026-01-28/

2026-01-28 06:45

NEW DELHI, Jan 28 (Reuters) - India is considering tightening mining auction rules to weed out developers that delay seeking clearances to mine on blocks they win at auctions, two sources familiar with the matter told Reuters, as the country seeks to speed up minerals production. Since 2015, the government has auctioned 594 mineral blocks, out of which less than 14% or 82 blocks were operational, as per official data. Sign up here. As part of an internal assessment, India has identified around 50 companies that have not begun mining and in some cases have not yet sought approvals to do so on their awarded blocks over the last five years and may blacklist them from participating in future auctions, the sources said. Both sources declined to be identified as they were not authorised to speak to the media. The federal Ministry of Mines did not respond to an email seeking comments. India plans to assess financials of a mining firm alongside past experience before allowing it to bid, one of the sources said. "We will make the selection criteria more stringent so only renowned companies can participate. This is still in discussion stage," the source said, adding that it could take a few months before any changes were finalised. In October, the mines ministry publicly notified penalties to be levied on miners that delayed seeking clearances to operationalise blocks won at auctions. Last year, the government said it was concerned about slow development of greenfield iron ore mines. India lags behind major economies such as Australia in mining's contribution to the total share of gross domestic product, which hovers close to only 2%. "This is due to a combination of factors, such as regulatory and environmental challenges in obtaining approvals and clearances, inadequate and inefficient infrastructure and investment and technological constraints, among others," said a joint government and industry report released last year. https://www.reuters.com/world/india/india-considers-tighter-mining-auction-rules-deter-laggards-sources-say-2026-01-28/

2026-01-28 06:43

SYDNEY, Jan 28 (Reuters) - Australian Prime Minister Anthony Albanese and his East Timor counterpart, Xanana Gusmao, on Wednesday said the Greater Sunrise gas project should be developed "as soon as possible", with Australia pledging a third of its state revenue to its small neighbour. Albanese, on his first visit as leader to Australia's northern neighbour, struck a new partnership agreement with Gusmao on Wednesday covering deeper defence ties between the two nations, border security and economic development. Sign up here. The visit comes as the tiny Catholic nation, which is being courted by China, continues its push to build a liquefied natural gas plant on its south coast instead of piping the gas to a plant in the Australian city of Darwin. After decades of delays, Australia's Woodside Energy (WDS.AX) , opens new tab and East Timor agreed in December to study a 5 million metric ton project for the Greater Sunrise fields, an area containing an estimated 5.1 trillion cubic feet of gas that Australia has been discussing, initially with Indonesia, since the 1980s. A joint statement from the two leaders, distributed by Australia, said the two countries "share an ambition for Greater Sunrise to be developed as soon as possible for the benefit of both states." Australia said it will establish an infrastructure fund in East Timor, allocating 10% of total state revenue from the project, "funded entirely from Australia’s share of future revenue." "This commitment will see at least a third of Australia’s revenue from the project being provided to Timor-Leste via the Infrastructure Fund," the statement said. The statement noted East Timor's preference for the onshore processing of gas. "Australia will support any commercially viable solution to develop Greater Sunrise proposed by the Sunrise Joint Venture consistent with the Maritime Boundary Treaty," the statement said. The national oil company Timor Gap owns more than 56% of the field, located about 140 km (87 miles) south of East Timor and more than 400 km from Darwin. The governments will accelerate negotiations for the project and they urged the Sunrise Joint Venture to present a development concept as soon as possible, the statement said. https://www.reuters.com/business/energy/australia-timor-urge-progress-greater-sunrise-gas-field-2026-01-28/

2026-01-28 06:42

SEOUL, Jan 28 (Reuters) - South Korean automaker Kia Corp (000270.KS) , opens new tab said on Wednesday that price increases of raw materials such as platinum, palladium and rhodium are having a major impact on its costs. The automaker said it has not yet seen the impact from surging memory chip prices. Sign up here. https://www.reuters.com/world/asia-pacific/south-korean-automaker-kia-says-platinum-price-increases-impacting-its-costs-2026-01-28/

2026-01-28 06:33

Kazakhstan lost 900,000 tonnes of output due to Tengiz outage Three transformers burned down out of 30, minister says CPC damage lost Kazakhstan 3.8 million tonnes of export CPC and Tengiz problems mean country to be within OPEC+ targets ASTANA, Jan 28 (Reuters) - Kazakhstan said on Wednesday that it was restarting vast Tengiz oil field in stages and it would try to reach full production within in a week after three transformers burned down losing the republic at least 7.2 million barrels of output. The problems at Tengiz are yet another setback for Kazakhstan, an OPEC+ member and the world's 12th largest producer, whose main export route was limited over recent months after an attack by Ukrainian naval drones. Sign up here. Reuters reported on Tuesday that Tengiz, Kazakhstan's biggest oilfield, is likely to have restored less than half of its normal production by February 7 as it slowly recovers from a fire and power outage. Kazakhstan's energy minister, Yerlan Akkenzhenov, said the adjacent Korolev filed had been launched two days ago but that relaunching Tengiz was a complex affair after three out of 30 transformers burned down. "Three of them have burned down - this is critical equipment," Akkenzhenov told reporters in Astana. "We have restored some of the work of these transformers and now the field is being launched in stages. The first gas has already appeared, so I think the entire Tengiz will be launched in stages within a week. Maybe even earlier." Asked directly if he was signalling that the field would reach capacity of around 900,000 barrels per day within a week he said: "Yes. We will try." Akkenzhenov said that the issues at Tengiz and the attack on the Caspian Pipeline Consortium (CPC), which accounts for 80% of Kazakhstan's oil exports, would push Kazakhstan back within the OPEC+ agreed production boundaries. "Due to the decrease in production and the incident at CPC and Tengiz, I think that we are going just within the stated volumes," he said. The shutdown at Tengiz and Korolev, he said, had led to a loss in production of about 900,000 tonnes of oil (7.2 million barrels) - though he said the lost volumes would be made up and that overall Kazakh production would not be affected in annual terms. The CPC damage lost Kazakhstan 3.8 million tonnes of exports, he said. He said that media reports that an international consortium developing the Karachaganak field had lost an arbitration case brought by Kazakhstan's government was "very good and very encouraging news". Bloomberg News reported on Monday, citing people familiar with the matter, that a consortium led by Eni (ENI.MI) , opens new tab and Shell (SHEL.L) , opens new tab, had lost the case, leaving them liable to pay as much as $4 billion in compensation. https://www.reuters.com/world/asia-pacific/kazakhstan-calls-report-its-win-karachaganak-case-very-positive-news-2026-01-28/

2026-01-28 06:30

Spot gold has risen more than 25% this year Silver indicators suggest prices may be due for a correction - Stanchart Tether CEO aims to allocate up to 15% of its portfolio to gold Palladium up more than 7% Jan 28 (Reuters) - Gold prices jumped 4% on Wednesday, closing in on $5,400 per ounce for the first time as this month's sharp rally showed no signs of fading, fueled by investors seeking safety amid mounting economic and geopolitical uncertainty. The market showed little reaction to the U.S. Federal Reserve decision to leave rates unchanged, as widely expected, or to comments after the announcement by Fed Chair Jerome Powell. Sign up here. Spot gold was up 4% at $5,393.19 an ounce at 4:08 p.m. ET (2108 GMT). U.S. gold futures for February settled 4.3% higher at $5,303.60. "The rally in the precious metals has kind of taken on a life of its own at this point," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Gold remains overbought and vulnerable to a correction, Grant said, but strong buying interest during dips continues to favor the upside, with the next target projected at $5,400. The Fed held interest rates steady, citing still-elevated inflation alongside solid economic growth, but gave little indication in its latest policy statement of when borrowing costs might fall again. Both Governor Christopher Waller, a contender to replace Powell when his term as central bank chief ends in May, and Governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favor of a quarter-percentage-point rate cut. "Precious metals simply don't care that the Fed is clearly in hiatus mode, rather than pause, with the complex as a whole trading higher throughout the press conference," said Tai Wong, an independent metals trader. Powell said inflation in December was likely still well above the central bank's 2% target. U.S. President Donald Trump said on Tuesday he would soon announce his pick to replace Powell. Gold is considered a safe-haven asset and typically performs well during periods of low rates. It has gained more than 25% since the start of the year, building on last year's record gains. Crypto group Tether plans to allocate 10%–15% of its investment portfolio to physical gold, its CEO Paolo Ardoino said, adding to the bullion which it says already backs some of its products. Spot silver rose 3.3% to $116.69 an ounce after hitting a record high of $117.69 on Monday. Prices have gained more than 60% so far this year. "A number of silver indicators suggest prices may be due a correction in the short term," analysts at Standard Chartered said in a note. Spot platinum rose 2.5% to $2,707.67 an ounce, after hitting a record $2,918.80 on Monday, while palladium rose 7.2% to $2,073.50 an ounce. https://www.reuters.com/world/asia-pacific/golds-blistering-rally-continues-past-5200-dollar-plunges-4-year-low-2026-01-28/