2025-05-12 12:14

PRAGUE, May 12 (Reuters) - The European Commission has asked the Czech Republic to postpone signing a contract with South Korea's KHNP worth at least $18 billion to build new nuclear power blocks as it investigates the use of foreign subsidies, a spokesperson said on Monday. After a complaint from losing bidder EDF of France, the request adds another potential hold-up to the nuclear power tender - the Czech Republic's biggest public procurement as it moves to replace coal and ageing nuclear units. Sign up here. The spokesperson confirmed the letter from Commissioner for Industrial Strategy Stephane Sejourne, which was first reported by Czech news agency CTK. "We are raising concerns under the rules of the foreign subsidies regulation regarding the South Korean bidder," the spokesperson said in a daily briefing shown online, adding there was no timeline for the probe. "We are not at the stage where we are opening an in-depth investigation, and I would not pre-judge if we are going there or not." A Czech regional court has already temporarily blocked a unit of electricity firm CEZ (CEZP.PR) , opens new tab, in which the Czech state has a majority, from signing a contract with KHNP until the court handles a complaint from EDF related to the tender process. CEZ had wanted to sign contracts with KHNP this month following anti-monopoly office clearance. The state and CEZ have insisted KHNP's offer was superior to EDF's. The Czech Industry Ministry did not immediately comment. KHNP said it had "faithfully and responsibly" participated in the bidding process. CTK cited CEZ chief executive Daniel Benes as saying the Commission's letter was from May 2 and that the French group was "doing anything" to prevent the plant from being built. CEZ has said it would seek damages from EDF caused by delays, which potentially threaten the 2036 completion date for the first of the two planned 1,063 megawatt units. The Czech government last month agreed to take an 80% stake in CEZ subsidiary EDU II, which was set up to build the new units, to ease the financial burden on the electricity firm. https://www.reuters.com/business/energy/eu-asks-czechs-postpone-signing-nuclear-power-plant-contract-ctk-reports-2025-05-12/

2025-05-12 11:59

LAUNCESTON, Australia, May 12 (Reuters) - China's imports of crude oil edged into positive territory for the first months of the year, but rather than a sign of improving fuel demand, the recovery is more about rising inventories. The world's biggest crude importer recorded arrivals of 11.69 million barrels per day (bpd) in April, down slightly from March's 12.1 million bpd but 7.5% higher than the 10.88 million bpd from the same month last year, according to customs data released on Friday. Sign up here. March imports were the strongest since August 2023 and the relatively robust outcome for April took arrivals for the first four months of the year to 11.83 million bpd, up 0.5% from the same period in 2024. But it appears the driving force behind the strength in imports in March and April was the availability of discounted cargoes from Iran and Russia, two countries that have been subject to new sanctions imposed by the United States. China's seaborne imports from Russia were 1.38 million bpd in April and 1.22 million bpd in March, the strongest two months since the 1.51 million bpd in October last year, according to data compiled by commodity analysts Kpler. Imports from Iran were assessed by Kpler at 743,000 bpd in April, down from 1.39 million bpd in March, which was the highest month since October. It's likely that imports from Iran came under pressure in April because U.S. President Donald Trump's administration ramped up pressure on Tehran to curb its nuclear programme. Sanctions imposed in March and April on two small Chinese refiners for buying Iranian crude have led to difficulties in sourcing oil for Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical, Reuters reported last week. But more importantly, the sanctions on the small operators have deterred bigger independent refiners from buying Iranian barrels, resulting in the drop in imports in April. The question is how long Chinese buyers will remain wary of buying Iranian oil, or put another way, how long it will take them to find ways to work around the latest sanctions and resume importing from Tehran. The same dynamic is also seemingly at play with Russia, with China's imports dropping sharply after the imposition of new sanctions in January against vessels carrying Russian crude by the outgoing administration of former U.S. President Joe Biden. China's seaborne imports from Russia dropped to the lowest in 26 months in February, with Kpler assessing arrivals of 970,000 bpd. But since then they have recovered, as refiners were able to work around U.S. sanctions. STORAGE FLOWS It's one thing knowing that China's crude imports have risen because refiners are buying more oil from Russia and Iran, but it's another understanding why they are doing so. The increased imports are most likely finding their way into commercial or strategic storages as Chinese refiners take advantage of the discounts on offer, while at the same time they worry that flows from Russia and Iran are likely to be subject to increasing sanctions by the United States. China does not disclose the volumes of crude flowing into or out of strategic and commercial stockpiles, but an estimate of the surplus crude available can be made by deducting the amount of oil processed from the total of crude available from imports and domestic output. On this basis, China's surplus crude amounted to 1.74 million barrels per day (bpd) in March, the most since June 2023, according to calculations based on official data. The swing to a huge surplus of available crude in March came after refiners made a rare draw on stockpiles in the first two months of the year, when oil imports were weak amid the higher prices that prevailed when cargoes were arranged. It's also likely that storage flows continued in April, with analysts Vortexa saying the average build in inventories exceeded 1.1 million bpd in the five weeks that ended May 4. With global crude prices under pressure from increased OPEC+ supply and concerns over global demand sparked by Trump's trade war, the question is whether China will continue to buy crude to build inventories. Certainly, periods of low prices have tended to result in higher imports, but refiners may be more cautious this time around given the deteriorating economic outlook. The views expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/chinas-recovery-crude-oil-imports-is-more-bearish-than-bullish-russell-2025-05-12/

2025-05-12 11:44

MOSCOW, May 12 (Reuters) - Iran is preparing for a visit by Russian President Vladimir Putin, Iran's government spokesperson Fatemeh Mohajerani was quoted by Russia's state RIA news agency as saying on Monday. "Putin's trip to Tehran is currently being worked out, preparations are underway," Mohajerani was quoted as saying by RIA. There was no immediate comment from the Kremlin. Sign up here. Putin held talks with Supreme Leader Ayatollah Ali Khamenei in Iran in 2022, the Kremlin leader's first trip outside the former Soviet Union after he sent tens of thousands of troops into Ukraine on February 24 of the same year. While Moscow has bought weapons from Iran for its war in Ukraine and signed a 20-year strategic partnership deal with Tehran earlier this year, their relationship since the 16th century, when Muscovy officially established relations with the Persian Empire, has at times been troubled. Iranian officials say that Moscow often talks tough but is wary of getting dragged into a major war in the Middle East, despite Russia's foray into Syria in 2015. Unlike some deals Russia has struck with other countries, the strategic partnership deal signed between Iran and Russia earlier this year did not include a mutual defence clause. https://www.reuters.com/world/iran-is-preparing-russian-president-vladimir-putin-visit-tehran-says-2025-05-12/

2025-05-12 11:27

May 12 (Reuters) - Guinea has cancelled a bauxite mining concession granted to Kebo Energy SA over its failure to deliver on promised investments, according to a statement broadcast on state television. The cancellation was announced late on Friday, with state television citing a decree issued by junta leader Mamady Doumbouya, who seized power in a coup in 2021. Sign up here. A senior Guinean mining official confirmed that the concession had been cancelled. A source close to Kebo Energy SA said the company had failed to raise sufficient funding for the project, which included building an alumina refinery. A spokesperson for Kebo Energy SA could not be reached for comment. Last week, Reuters reported Guinea's government had moved to revoke Emirates Global Aluminium's (EGA) mining licence over the company's failure to fulfil its commitment to construct an alumina refinery. Guinea has also cancelled a gold permit previously awarded to Guiter Mining SA, according to Friday's statement. Guiter Mining SA did not respond to a request for comment. Military-led governments in Guinea, Mali, Niger and Burkina Faso have pushed to rewrite mining laws and contracts after seizing power in coups in recent years. In some cases they have detained mining executives, suspended operations and seized products as they demand greater control and revenue of mineral resources. https://www.reuters.com/world/africa/guinea-cancels-bauxite-concession-awarded-kebo-energy-sa-2025-05-12/

2025-05-12 11:24

LONDON, May 12 (Reuters) - Bank of England monetary policymaker Megan Greene said on Monday that wage and inflation measures were moving in the right direction but remained too high and that she was worried about rising public inflation expectations. "What's a little bit more worrisome for me is that medium-term inflation expectations have also started picking up," Greene said in a panel discussion during a conference at King’s Business School. Sign up here. Last week, Greene voted with the majority when the BoE's Monetary Policy Committee cut interest rates by a quarter of a percentage point for the fourth time since last August. Greene, who has previously been among the MPC members most concerned about inflation risks in the UK, said she had been among BoE policymakers who were initially unsure about whether to cut borrowing costs at the central bank's May meeting. "I came into this last round quite torn about whether to hold or cut by 25 basis points," she said, echoing comments earlier on Monday by BoE Deputy Governor Clare Lombardelli. Rising trade tensions - started by U.S. President Donald Trump's sharp U.S. import tariff increases - eventually helped to convince her of the need to lower rates, Greene said, adding that Monday's announcement of a temporary U.S.-China agreement to suspend higher tariffs would not have changed her mind. Greene said it was not yet clear what would happen to tariffs on trade between the United States and the European Union which was an important factor for demand in Britain. https://www.reuters.com/world/uk/boes-greene-says-price-pressures-still-too-high-inflation-expectations-rising-2025-05-12/

2025-05-12 11:15

TOKYO, May 12 (Reuters) - Japan's Sumitomo Metal Mining (SMM) (5713.T) , opens new tab said on Monday it has agreed to buy a 30% stake in the Winu copper-gold project in Western Australia from Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab. The move comes as part of the Japanese miner's efforts to expand its copper and gold assets, and follows the two miners' agreement last December to form a joint venture to develop and operate the project. Sign up here. Under the deal, as consideration for the acquired interest, SMM will make an upfront cash payment of $195 million to Rio Tinto in 2025 when the transaction is expected to close. Additionally, SMM will pay deferred consideration of up to $235.4 million, contingent upon the achievement of milestones based on potential future expansion of the project's mill throughput. The Winu project, located in the Great Sandy Desert region of Western Australia, is a copper-gold mineralized zone discovered by Rio Tinto in 2017. As of the end of 2024, the project's estimated indicated and inferred resources total 741 million metric tons, containing about 3 million tons of copper and 250 tons of gold, SMM said in a statement. Rio Tinto is currently conducting a pre-feasibility study for building a mill with an annual throughput capacity of 10 million tons and has initiated the relevant environmental permitting processes. A spokesperson for SMM said it remains unclear when production is likely to begin and what the total development cost will be. SMM, which produced 230,000 tons of copper through equity holdings in the fiscal year ended March 31, aims to boost its copper output to 300,000 tons over the long term. https://www.reuters.com/markets/commodities/sumitomo-metal-buy-30-stake-rios-winu-copper-gold-project-australia-2025-05-12/