2025-07-21 00:45
MELBOURNE, July 21 (Reuters) - BHP Group (BHP.AX) , opens new tab has opted to sell its interest in the $2.5 billion Kabanga nickel project in Tanzania to its partner Lifezone Metals (LZM.N) , opens new tab for as much as $83 million, Lifezone said. The NYSE-listed company will acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania, Lifezone said in a filing late on Friday. Sign up here. The company issued a report on Friday that put development costs for the project at $2.49 billion. It is expected to produce around 50,000 metric tons of nickel annually once fully ramped up, a process that will take six years including construction. A final investment decision on the project is due next year. BHP had agreed in 2022 to make an investment of as much as $100 million in the nickel mine and processing facilities if certain conditions were met. BHP did not respond immediately to a request for comment on why it had sold its stake in the project. The divestment comes as BHP has since shifted its view on nickel on the back of a boom in output from Indonesia in recent years. It put its Australian Nickel West operations on care and maintenance last year due to a poor outlook for nickel prices and a decision on the future of those operations is due by early 2027. As a result the transaction, Lifezone now owns 100% of KNL, which in turn holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the Kabanga Nickel Project. The remaining 16% of TNCL is held by Tanzania's government. All existing agreements with BHP have been terminated and Lifezone has also assumed full control of 100% of the offtake from the Kabanga Nickel Project, it said. https://www.reuters.com/world/africa/bhp-exits-25-billion-tanzania-nickel-project-partner-lifezone-says-2025-07-21/
2025-07-21 00:44
Asian stock markets : Nikkei futures, yen steady after Japan elections Wall St futures firm before earnings blitz Euro underpinned as ECB seen on hold SYDNEY, July 21 (Reuters) - Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech giants. Investors were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union. Sign up here. There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline looms. Ishiba expressed his intention to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar. "Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields," said Rodrigo Catril, a senior FX strategist at NAB. "History also suggests that domestic political uncertainty tends to keep the BOJ on the side-lines, so the prospect of rate hikes is now set to be delayed for a little bit longer." The Bank of Japan still has a bias to raise rates further but markets are pricing little chance of a move until the end of October. While the Nikkei (.N225) , opens new tab was shut, futures traded up at 39,875 and just above the cash close of 39,819. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab was flat, while South Korean stocks (.kS11) , opens new tab added 0.4%. MEGA CAPS KICK OFF S&P 500 futures and Nasdaq futures both edged up 0.1%, and are already at record highs in anticipation of more solid earnings reports. A host of companies reporting this week include Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab, along with IBM (IBM.N) , opens new tab. Investors also expect upbeat news for defence groups RTX (RTX.N) , opens new tab, Lockheed Martin (LMT.N) , opens new tab and General Dynamics (GD.N) , opens new tab. Ramped up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30% this year. In bond markets, U.S. Treasury futures held steady having dipped late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this month. Most of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for October. Powell's reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge. The European Central Bank meets this week and is expected to hold its rates steady at 2.0% following a string of cuts. "The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release." The euro was unchanged at $1.1630 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at 98.40 . In commodity markets, gold was little changed at $3,348 an ounce with all the recent action in platinum which last week hit its highest since August 2014. Oil prices were caught between the prospect of increased supply from OPEC+ and the risk European Union sanctions against Russia for its war in Ukraine could curb its exports. Brent edged up 0.1% to $69.36 a barrel, while U.S. crude added 0.1% to $67.39 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-07-21/
2025-07-21 00:43
Yen strengthens in initial reaction to Japanese election Ruling coalition loses majority in upper house Investors brace for policy gridlock, fiscal worries Japanese markets closed on Monday SINGAPORE, July 21 (Reuters) - The yen firmed on Monday after Japan's ruling coalition lost its majority in the upper house as investors braced for a period of policy paralysis and market tumult in the world's fourth-largest economy ahead of a deadline on tariff negotiations with the U.S. The Japanese markets are closed for the day leaving the yen as an indicator of investor angst. Prime Minister Shigeru Ishiba's Liberal Democratic Party returned 47 seats, short of the 50 seats it needed to ensure a majority in the 248-seat upper chamber in an election where half the seats were up for grabs. Sign up here. The yen firmed to 148.32 per dollar in early trading, staying close to the 3-1/2-month low it hit last week as the election result was mostly priced in by investors. It firmed a bit against the euro to 172.64. While the ballot does not directly determine whether Ishiba's administration will fall, it heaps political pressure on the embattled leader who also lost control of the more powerful lower house in October. Chris Weston, head of research at Pepperstone, said the LDP coalition could still partner with the Democratic Party for the People (DPP) to get the 50 seats required, and "that is helpful for the yen." "However, most importantly, PM Ishiba has been defiant in his stance to stay the course as PM, but his hand has been sufficiently weakened." The election result, while not entirely a shock to markets, also comes at a tricky time for a country trying to get a tariff deal with U.S. President Donald Trump before an Aug. 1 deadline. Japanese government bonds (JGBs) plunged last week, sending yields on 30-year debt to an all-time high, while the yen slid to multi-month lows against the U.S. dollar and the euro. If Ishiba resigns, the political maelstrom could be a trigger for foreign investors to sell Japanese shares and the yen, analysts said. Elsewhere, investor focus has been firmly on Trump's global tariff salvos, with a Financial Times report last week indicating the U.S. president was pushing for steep new tariffs on European Union products. The euro was steady at $1.163225 in early trading, while sterling last fetched $1.13417. The dollar index , which measures the U.S. currency against six others, was at 98.352. The New Zealand dollar eased 0.18% to $0.5951 after annual consumer inflation accelerated in the second quarter but stayed below economists' forecasts, leading markets to raise the chance of a rate cut next month given the broader economic weakness. In cryptocurrencies, bitcoin fell 1% to $116,939, holding below a record $123,153 reached last week. https://www.reuters.com/business/yen-firms-investors-gird-political-uncertainty-2025-07-21/
2025-07-20 23:44
Q4 manganese output beats estimates Export shipments resume at Australia manganese Expects to record loss of $100–120 mln EBITDA in Australia manganese ops in FY25 July 21 (Reuters) - Australian diversified miner South32 (S32.AX) , opens new tab reported higher fourth-quarter manganese ore production on Monday, beating analysts' estimates, as it resumed export shipments from its Australia manganese operations following storm delays. The company's Groote Eylandt Mining Co (GEMCO) project in Australia's Northern Territory faced severe storms in early 2025, making it difficult to get production back on track after a tropical cyclone damaged the site's vital infrastructure a year ago. Sign up here. "Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan," the company said in a statement. The Perth-based miner said it expects its Australia manganese operation to post a loss of $100 million to $120 million in operating earnings in fiscal 2025, following a restart after disruptions from Tropical Cyclone Megan. The world's largest producer of manganese, which is used to improve the quality and strength of steel, clocked an output of 1.1 million wet metric tons (wmt) manganese for the quarter ended June 30, up from 534,000 wmt a year earlier. The result beat a Visible Alpha consensus estimate of 850,000 wmt, as per Barrenjoey. The company added it invested $517 million of growth capital expenditure at its Arizona-based Hermosa project in fiscal 2025. The diversified miner also posted fourth-quarter copper production of 21,900 tons from the Sierra Gorda mine, in which it holds a 45% stake. South32 in mid-July had flagged an impairment to its Mozal aluminium smelter in Mozambique and said its production was under review because it has not been able to secure affordable power prices after March 2026. https://www.reuters.com/markets/asia/australias-south32-q4-manganese-output-recovers-after-cyclone-beats-estimates-2025-07-20/
2025-07-20 23:42
LONDON, July 21 (Reuters) - Britain said on Monday it would hold an inquiry into the "Battle of Orgreave", a violent confrontation between police and striking coal miners in 1984 at the height of a year-long industrial dispute with Margaret Thatcher's government. More than 5,000 striking miners clashed with a similar number of riot police who had been drafted in from across the country at the Orgreave coking plant near Sheffield in northern England. Sign up here. It was one of the most violent scenes witnessed during a British industrial dispute, and also a pivotal moment in the strike, launched against Thatcher's moves to close money-losing pits. The miners ultimately lost the broader fight to save their industry. The police have long faced accusations of brutality and using excessive violence at Orgreave on June 18, 1984. TV footage showed charges by officers on horseback and one miner being repeatedly struck on the head with a baton. More than 120 people were injured and 95 miners initially arrested and charged with riot and violent disorder. Those charges were all later dropped after the evidence was dismissed. Campaigners have for years demanded to know who was responsible for the deployment of the large number of police and their tactics, as well as what happened to some official documents. Home Secretary Yvette Cooper - Britain's interior minister whose Labour party was in opposition at the time of the strike - said an inquiry headed by Pete Wilcox, the Bishop of Sheffield, would be held to find out the truth. "The violent scenes and subsequent prosecutions raised concerns that have been left unanswered for decades, and we must now establish what happened," she said. Kate Flannery, the Orgreave Truth & Justice Campaign Secretary, said they needed to be sure that the inquiry had the powers to have unrestricted access to all government and police papers. "We have waited a long time for this day and this is really positive news," she said. https://www.reuters.com/world/uk/uk-hold-inquiry-into-miners-strike-battle-orgreave-four-decades-2025-07-20/
2025-07-20 23:29
Coal's output share at 60% in H1, gas-fired output falls Malaysia imports record 20.9 million tons of coal in H1 Country has long-term plans to increase gas and renewables SINGAPORE/KUALA LUMPUR, July 18 (Reuters) - Malaysia is boosting coal-fired power output and importing the fuel at record levels, a Reuters analysis of data showed, taking advantage of low prices even as it pledges to increase use of gas-fuelled electricity generation in the longer term. The Southeast Asian nation is the fifth-largest exporter of liquefied natural gas but has said it could start importing the superchilled fuel due to rising demand and dwindling gas reserves. It has progressively ramped up coal-fired power output to address surging demand driven by data centres. Sign up here. Coal-fired power output in Peninsular Malaysia, which accounts for about 80% of power demand, rose nearly 9% in May and June. That was three times faster than power demand growth of 3%, data from Malaysia's Grid System Operator (GSO) showed. Output from coal-fired power plants rose 16.8% in the first half of July, the data showed, while power demand increased 5.2%. Rising demand has pushed Malaysia to import a record 20.9 million metric tons of coal in the first half of this year, data from analytics firm Kpler showed. "Low coal prices, coupled with regulated and capped power prices in Malaysia, have discouraged gas-fired generation this year," said Kesher Sumeet, LNG analyst at Energy Aspects. Coal's share of power generation rose to nearly 60% in the first half of 2025, the GSO data showed, putting it on track for the highest annual levels since the COVID-19 pandemic, while natural gas-fired power's share could slip to the lowest level since the pandemic's economic shutdown curbed demand. Gas-fired power output has fallen for ten straight months through June at an average of 11.3% every month, and fell 15.3% in the first half of July. Raksit Pattanapitoon, analyst at Rystad Energy, said Malaysia will continue to depend on coal in the short and medium-term as fuel costs are nearly 40% lower. "The tipping point will be when solar penetration into Malaysia's grid is sufficient to force inflexible, baseload coal to shut down during daytime, but Rystad Energy does not expect this to happen on a regular basis until the 2030s," he said. Malaysia plans to boost gas-fired capacity by 50% and more than double renewable capacity by 2030 to cut coal use and meet growing power demand from data centres - which are expected to rise to 52% of peninsular demand, from 2% now. Power demand fell during the first quarter due to tepid residential demand, but is expected to increase as much as 4.5% this year, according to state-run utility Tenaga Nasional Bhd. https://www.reuters.com/business/energy/malaysia-boosts-coal-power-output-imports-meet-rising-demand-2025-07-18/
