2025-02-19 06:09

Claim relates to Fortescue mining without land use deal More than 285 heritage sites damaged, court filing shows State says cultural loss award should be between A$5 million and A$10 million State expected to pursue Fortescue for compensation, if claim is granted MELBOURNE, Feb 19 (Reuters) - An Aboriginal group is seeking A$1.8 billion ($1.1 billion) from Western Australia in compensation after the state government allowed Fortescue (FMG.AX) , opens new tab to mine for iron ore without a land use deal, court filings showed on Wednesday. The Yindjibarndi Ngurra Aboriginal Corporation (YNAC) says activity at the Solomon mining hub has damaged its land and people. Its claim includes A$1 billion for cultural damage and A$678 million for economic loss, filings to the Federal Court of Australia showed. The case is set to be a landmark not only for the amount of compensation claimed but also because any precedent could open the door to other claims for past damage. The YNAC is suing the state because it authorised the mining. The state is then expected to try and recoup losses by suing Fortescue, the world's fourth biggest miner of iron ore. "Fortescue accepts that the Yindjibarndi People are entitled to compensation, however the parties disagree on the amount of that compensation," Fortescue said in a statement to Reuters. In its final submission to the court, the state government said the total compensation for economic loss should be A$128,114 plus interest of A$92,957. And the award for cultural loss should be in the range of A$5 million to A$10 million, the state argued, saying that would "appropriately reflect what the Australian community would accept as fair, reasonable or just." The Western Australian government department overseeing Aboriginal heritage said it was unable to comment because the matter was before the courts. YNAC declined to make additional comment. The court is hearing arguments this week with a decision not expected until late this year. Western Australia accounts for around half of the world's sea borne supply of the steel-making ingredient. In 2020, the destruction of the culturally and historically important Juukan Gorge rock shelters in the Pilbara region by Rio Tinto (RIO.AX) , opens new tab triggered a global outcry and the departure of its CEO and chairman. Experts quoted in the filings say the Solomon mine has caused existential damage to the Yindjibarndi people, by destroying aspects of their land and culture. The mine has damaged more than 285 significant archaeological sites and six Dreaming or creation story tracks that form part of Australia's understanding of human settlement in its arid regions around 40,000-45,000 years ago, the report said. "The significant harm to country, people and Dreamings remains ongoing," the report said. The Yindjibarndi group in 2017 won exclusive native title rights over land covering the Solomon mining hub, a vast mineral-rich project that started in 2012 and is capable of yielding up to 80 million tonnes of iron ore a year. Native title is a legal doctrine in Australia that recognises Indigenous rights to certain parcels of land. Fortescue's founder Andrew Forrest is one of Australia's wealthiest people. The company logged net profit after tax of $5.7 billion last financial year. ($1 = 1.5760 Australian dollars) Sign up here. https://www.reuters.com/sustainability/land-use-biodiversity/aboriginal-group-seeks-11-bln-western-australia-iron-ore-claim-2025-02-19/

2025-02-19 06:00

Gold hit a record high of $2,946.85/oz earlier in the session Trump says he will introduce 25% tariffs on autos Fed wary of inflation at its January meeting as firms eyed price hikes Feb 19 (Reuters) - Gold prices slipped after hitting a record high earlier on Wednesday as the dollar rose, while U.S. President Donald Trump's latest tariff threats kept investors on edge. Spot gold lost 0.2% to $2,928.49 per ounce as of 2:19 p.m. ET (19:19 GMT). Bullion surged to an all-time high of $2,946.85/oz earlier in the session. U.S. gold futures settled 0.4% lower at $2,936.10. The dollar index (.DXY) , opens new tab rose 0.1% against its rivals, making gold more expensive for other currency holders. "We are in a state of unusual-heightened uncertainty... the catalyst is the tariffs and trade talks or threats that are going on around the world," which is supporting the prices, said Paul Wong, market strategist at Sprott Asset Management. Trump said on Tuesday that he intends to impose auto tariffs "in the neighborhood of 25%", along with similar duties on semiconductor and pharmaceutical imports. This follows his recent move to impose a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium earlier this month. Bullion is seen as a safeguard against geopolitical risks and inflation, but rising interest rates diminish its attractiveness as a non-yielding asset. Fed officials remain uncertain about the impact tariffs might have on inflation. Traders currently see at least one 25-basis-point rate cut and a 44% chance of an additional lowering by December, according to LSEG data. After Donald Trump's inauguration, Federal Reserve officials expressed concern about inflation, as firms were expected to raise prices to offset import tariffs, policymakers noted at their January meeting. Following the inauguration of Donald Trump, officials from the Federal Reserve voiced concerns over potential inflation, as they anticipated firms raising prices to offset import tariffs, according to notes from their meeting in January. Among other metals, spot silver, used in electrical components, shed 0.4% to $32.74 an ounce, aiming to challenge a 10-year high. Platinum declined 1.7% to $970.45 and palladium eased 1.6% to $971.47. "Although the imposition of tariffs could hurt silver's industrial demand, it could still push higher from a valuation perspective," said Han Tan, Exinity Group chief market analyst. Sign up here. https://www.reuters.com/markets/commodities/gold-falls-profit-taking-hopes-russia-ukraine-peace-talks-2025-02-19/

2025-02-19 05:57

A look at the day ahead in European and global markets from Ankur Banerjee Another day, another bout of threats from "tariff man". This time on pharmaceutical and semiconductor imports that investors seem to have taken in stride for now, expecting the latest measure to also be used as a negotiating tool. U.S. President Donald Trump said sectoral tariffs on pharmaceuticals and semiconductor chips would start at "25% or higher, and it will go very substantially higher over the course of a year." He intends to impose similar tariffs on autos as soon as April 2. Trump, the self-declared "tariff man," had been telegraphing his intentions of imposing tariffs for months, so some of the news may have been priced in. And while investors remain wary, they are looking beyond the ebbing tariff worries. That leaves the spotlight on European stocks' stunning start to the year, with the pan-European STOXX 600 index (.STOXX) , opens new tab closing at record high on Tuesday, taking its 2025 gains to nearly 10%. Futures point to a subdued open. The rising chances of increased military spending in Europe against a backdrop of peace talks to end the Russia-Ukraine conflict have helped defence stocks this week and with no resolution in sight, the defence sector may be set for its ninth straight session of gains. Earnings from top iron ore producer Rio Tinto (RIO.AX) , opens new tab will be the main event in the corporate world during European hours with investors keen to hear from Rio on how it will navigate choppy waters in a world full of tariffs. BHP (BHP.AX) , opens new tab, the world's largest listed miner, on Tuesday flagged risks to global growth from potential trade tensions, as it logged its lowest first-half profit in six years. On the macro side, UK inflation data for January is due to be out at 0700 GMT and will likely show a slight acceleration to 2.8% last month from 2.5% in December, according to a Reuters poll. That along with Tuesday's data showing the UK's accelerating wage growth has underscored why the Bank of England has been cautious about cutting interest rates despite a weak overall economy, leaving sterling well supported near a two-month peak. The pound is up 1.8% in February and on course to snap a three-month losing streak amid dollar weakness. Key developments that could influence markets on Wednesday: Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2025-02-19/

2025-02-19 05:37

TOKYO, Feb 19 (Reuters) - Japanese trading house Mitsui & Co (8031.T) , opens new tab said on Wednesday it would acquire a 40% stake in the Rio Tinto-operated (RIO.AX) , opens new tab, (RIO.L) , opens new tab Rhodes Ridge iron ore project in Western Australia for $5.34 billion to strengthen its long-term earnings base. Rhodes Ridge is one of the world's largest undeveloped iron ore deposits with 6.8 billion metric tons of mineral resources, Mitsui said in a statement. The Japanese company is buying out two separate stakes controlled by the family of late Australian magnate Michael Wright, whose father jointly discovered the region's iron ore lode in the 1960s. Mitsui, with a diverse portfolio spanning metal resources, energy, machinery, and food, expects production to start by 2030. Its 40% stake in Rhodes Ridge is projected to yield 16 million tons of iron ore a year initially, rising to more than 40 million tons after further expansion. In the financial year that ended in March 2024, Mitsui's annual equity share of iron ore production was 61 million tons, the company said. Mitsui expects to find cost savings by tapping existing infrastructure between Rhodes Ridge and Rio Tinto's nearby Robe River project in which it also has a stake, it said. Iron ore from Rhodes Ridge will be blended into the ore sold by Rio Tinto and exported to Asian countries, including Japan, Mitsui added. Wright Prospecting's former 50% interest in the Rhodes Ridge joint venture has been restructured and separated into two newly formed entities separately controlled by its shareholders, VOCG and AMB. Mitsui will buy VOC Group's entire 25% interest for $3.34 billion including stamp duty, with the deal expected to close by end-March 2026. Mitsui also plans to purchase a 15% stake from AMB Holdings for $2 billion including stamp duty. After these transactions, Rio Tinto will hold 50% of the project, while Mitsui will own 40% and AMB 10%. Sign up here. https://www.reuters.com/markets/deals/mitsui-buy-53-billion-interest-australias-rhodes-ridge-iron-ore-project-2025-02-19/

2025-02-19 05:34

Feb 19 (Reuters) - Shares of Mineral Resources (MinRes) (MIN.AX) , opens new tab plunged to their worst day in 16 years on Wednesday after the Australian miner cut its fiscal 2025 production volumes and raised costs for its Onslow iron project in Pilbara due to weather disruptions. The company's shares fell as much as 22.1% to A$23.75, the lowest since late July 2020, and logged their biggest single-day decline since October 10, 2008. The stock was the top loser on the benchmark ASX 200 (.AXJO) , opens new tab index, which was down 0.7%. The miner trimmed its forecast for iron ore volumes to 8.8-9.3 metric tons (Mt) for financial year 2025 from 10.5-11.7 Mt estimated previously. It also hiked its free-on-board costs, or the charges incurred to transport iron ore, to $60/ton-$70/ton from $58/t-$68/t. "The cyclone (Sean) dropped an extraordinary amount of rain on parts of the Pilbara and the deluge was exacerbated days later by a low-pressure system that dumped more heavy rain inland. These weather events caused significant flooding that damaged parts of the Onslow Iron haul road," founder and managing director Chris Ellison said. Record rainfall on Western Australia's Pilbara coastline as well as a slew of tropical cyclones have affected shipments for iron ore miners including Rio Tinto (RIO.AX) , opens new tab. Late on Tuesday, MinRes reported a 55% drop in its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to A$302 million ($192.13 million), but still beat an estimate of A$205 million provided by Visible Alpha. Analysts at Jefferies estimate the company's capital expenditure for fiscal year 2025 at A$2.1 billion, an increase of about A$340 million from their previous expectations. "The medium-term downside risk presented from (MinRes's) elevated debt in an environment of falling iron ore, soft lithium, higher capex and lower lithium production prevents us from turning more constructive." ($1 = 1.5718 Australian dollars) Sign up here. https://www.reuters.com/markets/commodities/australias-mineral-resources-sees-worst-day-16-yrs-production-woes-higher-costs-2025-02-19/

2025-02-19 05:29

KAMPALA, Feb 19 (Reuters) - Uganda is seeking to borrow $190 million from Stanbic Bank to compensate power distributor Umeme Limited (UMEME.UG) , opens new tab for its investments in the national grid after its concession expires next month, a senior finance ministry official said. Umeme, which is listed on both Uganda and the neighbouring Kenyan bourses, has been running a power concession in Uganda that started in 2005. The Ugandan government declined Umeme's request to extend its 20-year concession that expires next month. The concession's terms require the government to pay Umeme all unrecovered capital investments when the agreement ends. State Minister for Finance Henry Musasizi has sent to parliament a request to allow the government to borrow the money, he said in a post on social media platform X late on Tuesday. Sign up here. https://www.reuters.com/world/africa/uganda-seeks-borrow-190-million-compensate-power-distributor-2025-02-19/