2025-02-18 11:09
CNPE again delayed decision on Angra 3 nuclear plant completion Energy Minister Silveira supports completion despite high costs Completing Angra 3 could cost additional 23 billion reais BRASILIA, Feb 18 (Reuters) - Brazil's government is divided over whether to complete its third nuclear power plant after 40 years of off-and-on construction, as the country's economic team pushes for the project to be abandoned, two sources familiar with the matter told Reuters. The final decision over the plant, called Angra 3, rests with the National Energy Policy Council (CNPE), which postponed its decision on the matter again on Tuesday, following another delay late last year. According to the Minister of Mines and Energy Alexandre Silveira, the issue is expected to be discussed at the next CNPE meeting, for which no date has been set yet. Construction of the plant, located in the coastal town of Angra dos Reis, began in the 1980s but has faced multiple stoppages due to funding shortages and a 2015 corruption probe. A 2022 attempt to revive the project faltered. The debate comes as President Luiz Inacio Lula da Silva aims to position Latin America's largest economy as a hub for green investment. In recent years, several countries have reconsidered nuclear energy in response to increasing demand for climate-friendly power. Some argue that supporting nuclear energy undermines Brazil's natural advantages in renewable sources such as wind, solar and hydropower. But many experts consider nuclear a good alternative to thermal power, which is more expensive and polluting but often relied upon during droughts. Both have similar costs. "This is a tough battle," said one economic team source, speaking on condition of anonymity due to the private nature of the discussions. "The main argument against it is the lack of funding. Who will cut their budget to make room for this?" Energy Minister Silveira is a major supporter of the project. "We have to complete it," he said in November, calling Angra 3 a "mausoleum." The Finance and Planning Ministries declined to comment. HIGH COSTS A study by state development bank BNDES estimated that completing the plant would require 23 billion reais ($4 billion) on top of the 12 billion reais already spent. Eletronuclear, the state-controlled company overseeing the project, said five more years of construction are needed, plus time for bidding and site mobilization. Alternatively, BNDES estimated that scrapping the project would incur in 21 billion reais of costs, including contract terminations and penalties for canceling subsidized financing. But one source said the Finance Ministry has modeled scenarios where total costs could reach 30 billion reais, and warned that electricity from the plant could drive up power bills. Eletronuclear President Raul Lycurgo Leite, an advocate for the plant, told Reuters that his team plans to raise most of the required funds from the market. "The worst infrastructure project is one that remains stalled," he said, noting that maintaining the unfinished Angra 3 site costs over 1 billion reais annually. ($1 = 5.7104 reais) Sign up here. https://www.reuters.com/world/americas/brazils-government-split-over-multi-billion-dollar-nuclear-plant-completion-2025-02-18/
2025-02-18 10:59
Ukraine drone struck Russian oil pipeline Monday Kazakhstan transit volumes could drop by 30%, says Transneft Investors watch for progress in Ukraine-Russia peace talks OPEC+ output plans also in focus LONDON, Feb 18 (Reuters) - Oil extended gains on Tuesday after a drone attack on an oil pipeline pumping station in Russia reduced flows from Kazakhstan, though prices were kept in check by the prospect of rising supply. Brent crude futures gained 44 cents, or 0.6%, to $75.66 per barrel by 1014 GMT. U.S. West Texas Intermediate crude futures were up 91 cents from Friday's close to $71.65 a barrel. There was no settlement for WTI on Monday because of the U.S. Presidents' Day holiday. "The overriding theme driving oil prices lately has been around supply expectations. With the weakness in prices over past weeks, news of a drone strike on Kazakhstan's export pipeline in Russia has provided the catalyst for some bearish sentiment to unwind," said IG market strategist Yeap Jun Rong. A senior Russian official said on Tuesday that Ukrainian drones had attacked a Russian pipeline that pumps about 1% of global crude supply. The damage could reduce oil transit volumes from Kazakhstan by about 30% and take up to two months to deal with, Russian oil transport company Transneft said. "However, longer-term gains are likely to remain capped as the market may anticipate higher supplies from OPEC+ and Russia further down the road while improvement in the demand outlook, particularly from China, remains uncertain," IG's Yeap said. BMI analysts expect Brent prices to average $76 a barrel in 2025, down 5% from the 2024 average, because of oversupply, tariffs and trade tensions, they said in a note. OPEC+ producers are not considering delaying a series of monthly oil supply increases scheduled to begin in April, a Russian state media report said. In December OPEC had pushed back a plan to begin raising output to April, citing weak demand and rising supply outside the group. Markets were also awaiting news from Russia-Ukraine peace talks between U.S. and Russian officials in Saudi Arabia later on Tuesday. "There is seemingly plenty to be bearish about in the crude market, the biggest factor now being the outcome of Ukraine negotiations," said Sparta Commodities analyst Neil Crosby. "Russian oil may partially come back to the legitimate market, though there are, of course, many permutations to the end result." Sign up here. https://www.reuters.com/business/energy/brent-oil-prices-tick-down-after-gaining-caspian-pump-station-attack-2025-02-18/
2025-02-18 10:42
MUMBAI, Feb 18 (Reuters) - India needs to allow the export of 100% broken rice after inventories of the grain reached a record high at the start of February, nearly nine times the government's target, exporters told Reuters. Exports of 100% broken rice could help reduce stocks in the world's biggest exporter and enable poor African countries to secure the grain at lower prices, as well as support Asian animal feed and ethanol producers that rely on the grade. "The government has way more rice than needed, so there's no issue with supply. Given that, they should allow exports of 100% broken rice," said B.V. Krishna Rao, president of the Rice Exporters' Association (REA). The REA has requested the Ministry of Commerce and Industry to lift the ban. India's Ministry of Commerce and Industry and Ministry of Consumer Affairs, Food and Public Distribution did not respond to a request for comment. India banned exports of 100% broken rice in September 2022 and then imposed curbs on exports of all other rice grades in 2023 after poor rainfall raised concerns over production. However, the supply situation has now improved after the country harvested a record crop, which allowed New Delhi to remove curbs on exports of all grades except 100% broken rice. State granary reserves of rice, including unmilled paddy, totalled 67.6 million metric tons as of Feb. 1, compared to the government's target of 7.6 million tons, data compiled by the Food Corporation of India (FCI) showed. The government has allowed the FCI to sell some grades of rice for ethanol production in India because supplies are comfortable, and it should now lift the ban on broken rice exports, said Himanshu Agrawal, executive director at Satyam Balajee, a leading rice exporter. India exported 3.9 million metric tons of broken rice in 2022, mainly to China for animal feed and to African countries such as Senegal and Djibouti for human consumption. Broken rice is a byproduct of milling, and African countries are seeking it because it is cheaper than other grades, said the REA's Rao. India's main competitors in the rice market are Vietnam, Thailand, Pakistan and Myanmar. Sign up here. https://www.reuters.com/markets/commodities/indian-industry-body-calls-broken-rice-exports-stocks-surge-2025-02-18/
2025-02-18 10:18
Feb 18 (Reuters) - The latest UK jobs market data published earlier on Tuesday does not change the Bank of England's broad expectations for the economy, BoE Governor Andrew Bailey. Pay growth rose by a bit less than the BoE had forecast earlier this month when it also said it expected that increases in wages would start to slow this year, Bailey said at an event in Brussels organised by Bruegel, a think tank. "I don't think we saw anything this morning that fundamentally changes that," he said. Sign up here. https://www.reuters.com/world/uk/boes-bailey-says-latest-labour-data-line-with-forecasts-2025-02-18/
2025-02-18 10:08
MUMBAI, Feb 18 (Reuters) - The Indian rupee settled weaker on Tuesday, pressured by dollar demand spurred by the maturity of positions in the non-deliverable forwards (NDF) market and a decline in most of its regional peers. Likely dollar-selling intervention by the Reserve Bank of India helped limit losses in the local unit, traders said. The rupee closed at 86.95 against the U.S. dollar, down about 0.1% on the day. Elevated interbank dollar demand due to the maturity of positions in the NDF market weighed on the rupee alongside likely outflows from local stocks, a trader at a private bank said. Foreign investors have net sold about $12 billion of local stocks so far in 2025, exerting pressure on the rupee. On the day, weakness in regional peers was also a headwind. The offshore Chinese yuan fell 0.2% to 7.2808 while the dollar index rose to just shy of the 107 handle. An uptick in U.S. bond yields aided the dollar, helping it extend its recovery from a two-month low hit last week after U.S. President Donald Trump deferred the implementation of reciprocal trade tariffs. Foreign exchange markets have been acutely sensitive to tariffs-related developments with investors gauging how the levies may impact U.S. growth and inflation dynamics, and consequently the future path of U.S. policy rates. "A vast majority of respondents see Trump administration policies as inflationary, with more than half seeing them as stagflationary," Bank of America said in a note, citing data from a survey of 52 fund managers conducted last week. Upward pressure on U.S. prices may delay rate cuts by the Federal Reserve. Investors currently expect the Fed to keep rates unchanged at least till September. India's foreign exchange and bond markets will be shut on Wednesday for a local holiday. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-lower-ndf-maturity-spurs-dollar-bids-asian-peers-decline-2025-02-18/
2025-02-18 08:04
LONDON, Feb 18 (Reuters) - Anglo American (AAL.L) , opens new tab said on Tuesday it will sell its nickel business to a unit of Hong Kong-listed MMG Ltd (1208.HK) , opens new tab for up to $500 million, as a broader restructuring aimed at refocusing its operations on copper and iron ore mining is well under way. The nickel business includes two ferronickel and two greenfield projects in Brazil. Anglo will get $350 million at completion, up to $100 million in a price-linked earnout and a contingent $50 million in cash for the potential development of the projects, it said in a statement. The assets together produce about 38,000 metric tons of nickel per year. The metal's price reached a four-year low in January, as supply soared in top producer Indonesia. London-listed Anglo American in May rebuffed a $49 billion hostile bid from the world's biggest miner BHP (BHP.AX) , opens new tab, which was focused on Anglo's copper assets. "We are unlocking the inherent value of all of Anglo American as we create a much simpler, more resilient and agile business that will enable full value transparency in the market," CEO Duncan Wanblad said. Ahead of its financial results on February 20, Anglo this week also said the spin-off of its platinum unit in South Africa will be completed by June. As part of its restructuring, Anglo sold its coal assets for about $4.9 billion and plans to divest its De Beers diamond unit. Sign up here. https://www.reuters.com/markets/deals/anglo-american-sell-nickel-business-up-500-million-2025-02-18/
