2024-10-04 11:38

MOSCOW/NEW DELHI, Oct 4 (Reuters) - Prices of October Urals crude oil have risen back above $65 a barrel at Russian Baltic and Black Sea ports, or $5 higher than the price cap set by Western nations, Reuters calculations showed on Friday, as the conflict in the Middle East pushed up oil prices. Oil prices surged on Thursday as concerns mounted that a widening regional conflict in the Middle East could disrupt global crude flows. Brent crude futures were up again on Friday, by 55 cents, or 0.7%, at $78.17 a barrel, as of 0831 GMT. Higher Urals prices will boost Russia's oil revenues. A widening of discounts at Indian ports and rising freight rates limited the extent of price rises in Urals crude, although not by much for now, traders said. Urals oil prices have mostly remained above the $60 price cap since early this year and previously topped $65 a barrel in late August, Reuters calculations based on traders’ data shows. In late 2022 the Group of Seven countries - the United States, Canada, Britain, Italy, France, Germany and Japan - together with the European Union and Australia imposed a cap of $60-per-barrel on the sale of Russian oil on a free-on-board basis, seeking to reduce Russia's revenue from seaborne oil exports as part of sanctions. India, the main buyer of Russian oil delivered via sea, did not join Western sanctions on Russia, but adheres to international sanctions policies including the price cap. RISING FREIGHT RATES The price of Urals oil briefly sank below the price cap in September as Brent fell but the benchmark price has rebounded recently as the Middle East conflict escalated. Under the Western price cap terms, suppliers of Russian oil are only able to use Western services such as shipping and insurance if Russian crude trades below $60 per barrel. However, the price for each specific Urals cargo is agreed between a seller and a buyer and various price formulas can be used, traders said, making it impossible to gauge the price for a particular cargo and whether it exceeds the price cap. Reuters calculations of the Urals oil price are based on the grade's market price at Indian ports on a delivered-ex-ship basis, transport costs and the Brent benchmark. Discounts for Urals oil loading in October were at $3.50-3.80 per barrel to Brent on average, slightly wider compared to recent levels of $3.30 for September cargoes of the grade, four traders said. Freight rates firmed to about $5.5 million for a tanker's one-way voyage from Russian Baltic ports to India from below $4.8 million in September, two of the traders said. The rise in freight rates was due to higher loadings from Russian ports and limited availability of vessels ahead of the upcoming winter season, they added. Sign up here. https://www.reuters.com/business/energy/october-russian-urals-oil-prices-trades-5bbl-above-price-cap-brent-rallies-2024-10-04/

2024-10-04 11:32

Oct 4 (Reuters) - Natural gas distribution company Bulgargaz said on Friday that French oil major TotalEnergies (TTEF.PA) , opens new tab ranked first in a tender offer to supply liquefied natural gas (LNG) in November and December to the Alexandroupolis terminal in Greece. The tender is for the supply of one cargo each month of 1,000 gigawatt hours (GWh), according to a press release by the state-owned Bulgarian company. Sign up here. https://www.reuters.com/business/energy/totalenergies-wins-tender-lng-supply-bulgargaz-2024-10-04/

2024-10-04 11:23

DONJA JABLANICA, Bosnia, Oct 4 (Reuters) - At least 16 people died in floods in Bosnia and Herzegovina on Friday and many others were missing as torrential rain and landslides destroyed homes, roads and bridges across the centre of the country, officials said. The municipality of Jablanica, about 70 km (43 miles) southwest of the capital Sarajevo, where the deaths were reported, was completely cut off after road and railway links were destroyed. Sixteen people were killed, most of them in the Jablanica area, cantonal interior ministry spokesperson Ljudevit Maric, told Reuters. "Search for the missing continues," he said. Bosnia's Civil Defense said between 20 and 40 people were listed as missing as they were either trapped under the rubble of carried away by flooding, N1 TV reported. Bosnia's inter-ethnic presidency - a Bosniak, Serb and Croat tripartite - said it requested military help for the wider Jablanica area, and engineers, rescue units and a helicopter were deployed, including some to rescue 17 people from a mental hospital. Edin Forto, the transportation minister of the Bosniak-Croat federation, said the situation in the affected areas was critical. "The flash flood ripped out entire houses, together with concrete slabs and foundations and carried them away... I have never seen anything like this," he said. Some houses had been reduced to rubble by landslides, in what appeared to be Bosnia's worst flooding since at least 2014, when more than 20 died in floods. "In some cases only parts of roofs can be seen. I cannot remember the crisis of such a magnitude since the (1992-1995) war," said Darko Jukan, a spokesman for the regional government. At an emergency session, Bosnia's central government said it would allocate funds for the recovery of the affected areas. The government of the Bosniak-Croat Federation declared a state of natural disaster in the flood-affected areas and set up a crisis committee to help alleviate the situation there. Neighbouring Croatia and Serbia also offered Bosnia assistance in rescue operations. Aldin Brasnjic, the head of the Civil Defence administration in the Bosniak-Croat federation, said rescuers could not reach a number of villages due to blocked roads and that upcoming rains would make their efforts more difficult. "The search for the missing is priority at the moment. We think we will be able to complete this today and tomorrow," he said. In a video shared with Reuters on Friday, Robert Oroz showed his village of Luke, near the town of Fojnica in central Bosnia, flooded and littered with tree trunks, logs, branches and debris. He said water receded for some time but started to rise again. "Situation is disastrous ... A smokehouse for meat was here, it's not any more," Oroz said. The town of Kiseljak in central Bosnia was inundated after a river burst its banks. Brown water lapped at the doors of businesses and homes, drone footage taken by Reuters showed, although the waters had begun to recede on Friday afternoon. Later on Friday, Bosnia's election commission decided to postpone local elections set for this weekend in municipalities affected by floods, but to carry on with voting elsewhere. The floods in Bosnia came after an unprecedented summer drought which caused many rivers and lakes to dry up, and affected agriculture and water supply to urban areas throughout the Balkans and most of Europe. Meteorologists said extreme weather changes can be attributed to climate change. Neighbouring Croatia was also hit by floods on Friday, though there were no reports of casualties. Authorities issued a severe weather warning for the Adriatic coast and central regions of the country. Montenegro and Serbia issued similar warnings. Sign up here. https://www.reuters.com/world/europe/least-five-feared-dead-bosnian-floods-official-says-2024-10-04/

2024-10-04 11:23

Oct 4 (Reuters) - Coeur Mining (CDE.N) , opens new tab is buying smaller peer SilverCrest Metals (SIL.TO) , opens new tab for about $1.7 billion to bulk up as silver prices hit their highest in more than a decade, the companies said on Friday. Silver prices have climbed nearly 35% this year and are hovering near a 12-year high hit late in September on the back of gold's stellar rally and strong demand, prompting miners to rush to secure reserves of the metal that is used in industries ranging from solar panels to electronics. Last month, Canada's First Majestic (AG.TO) , opens new tab agreed to buy Mexico-focused Gatos Silver (GATO.N) , opens new tab for $970 million. Coeur shares fell nearly 5% before the bell, while SilverCrest's U.S.-listed shares jumped 12.1%. SilverCrest shareholders will receive 1.6022 Coeur common shares for each owned, with an implied value of $11.34 per share — a 22% premium to last close of the company's U.S. listing. Coeur has wholly owned operations in Mexico, Nevada, Alaska and South Dakota, while SilverCrest's principal focus is its Las Chispas mine in Sonora, Mexico. With demand for silver in renewable energy and a wide range of electrification end-uses rising, Coeur bets on the addition of SilverCrest's Las Chispas mine to its portfolio of Palmarejo underground silver and gold operation next door in Chihuahua. Upon completion of the deal, expected late in the first quarter of 2025, the existing Coeur and SilverCrest shareholders will own about 63% and 37% of the combined company, respectively. With the addition of Las Chispas mine to Coeur's portfolio, silver production is expected to rise to nearly 21 million ounces in 2025 from 10.7-13.3 million silver ounces it estimates for 2024. The combined company is also expected to produce about 432,000 ounces of gold next year from the 310,000-355,000 ounces estimated this year. If the transaction is not cleared, a fee of $60 million and $100 million are payable by SilverCrest and Coeur, respectively. Sign up here. https://www.reuters.com/markets/commodities/coeur-mining-buy-silvercrest-metals-17-bln-2024-10-04/

2024-10-04 11:06

SEOUL, Oct 4 (Reuters) - Korea Zinc (010130.KS) , opens new tab, the world's biggest refined zinc producer, has been embroiled in a bitter feud among founding families over control of its $12 billion zinc empire. The winner of the battle stands to control South Korea's significant player in a U.S.-led effort to reduce heavy reliance on China for key metals and materials used in industries ranging from construction to automobiles, analysts said. Private equity firm MBK Partners and Young Poong (000670.KS) , opens new tab on Friday raised their offer price for shares in Korea Zinc to match a counteroffer from rival family members and Bain Capital. WHO ARE THE MAJOR PLAYERS? Young Poong was founded in 1949 as a trading company by two co-founders surnamed Chang and Choi born in what is now North Korea. The company expanded into smelting metals in the 1970s, and then in 1974 the two families formed Korea Zinc, with the Choi family managing the operation. Scions of the two families are now joining forces with private equity firms in a takeover battle. The co-founding Chang family, which leads zinc producer peer Young Poong, joined forces with private equity MBK Partners for a $1.7 billion tender offer in September. The Choi family teamed up with Bain Capital to fend off that takeover attempt. Korea Zinc's largest shareholder is currently Young Poong, which runs a 400,000 metric ton-per-year zinc smelter at Seokpo, South Korea, which is the world's sixth largest. Young Poong, also known for its bookstore chains in Korea, generates a majority of its revenue from sales of parts for smartphones and other electronic devices. MBK Partners, a North Asia-focused private equity firm with investments in South Korea, Japan and China, has over $30 billion in capital under management, according to its website. Founded by Michael ByungJu Kim in 2005, MBK has been a frequent player in South Korean deals, including the purchase of local hypermarket chain Homeplus from Tesco (TSCO.L) , opens new tab for $6.1 billion in 2015. MBK Partners said in September it plans to eventually become the largest shareholder in Korea Zinc, partly by exercising a call option to buy Korea Zinc shares owned by Young Poong and associated entities. WHAT ARE THE STAKES? Korea Zinc and top shareholder Young Poong supply 85% or more of South Korea's zinc, mostly to protect steel used in cars, construction and other products. Although Korea Zinc has the biggest market share among companies in refined zinc, China dominates the global production of refined zinc, considered a critical metal by Washington. Korea Zinc has in recent years attracted partnerships from LG Chem (051910.KS) , opens new tab and Hyundai Motor (005380.KS) , opens new tab to produce battery materials in Korea, in response to Washington's call to reduce reliance on China for batteries and battery materials. Korea Zinc also supplies materials for semiconductor firms such as sulphuric acid for Samsung Electronics (005930.KS) , opens new tab. WHAT SPARKED THE TAKEOVER BATTLE? After decades of intertwined business operations, in the late 2010s Young Poong raised its ownership in Korea Zinc as part of a governance structure reorganisation to resolve circular shareholding, enlarging the stake controlled by the Chang family versus the Choi family. When a third-generation member of the Choi family, Yun B. Choi, began to lead Korea Zinc's management in 2019, he began to expand the company's business. Choi, a Columbia law school graduate, expanded investments beyond the core zinc business to battery materials, hydrogen and renewable energy, inviting criticism from Young Poong. The conflict between visions for the company rose to the surface when Korea Zinc said this year it would no longer handle the treatment of sulphuric acid generated at Young Poong's Seokpo smelter. Korea Zinc has said the costly transport and storage of the dangerous by-product from the Seokpo smelter should be Young Poong's responsibility handled with Young Poong's investment. Young Poong said Korea Zinc had violated a long-standing agreement and threatened Seokpo smelter's viability. CONTRASTING FORTUNES Korea Zinc is a key investment for loss-making Young Poong. Although both Korea Zinc and Young Poong are both in the smelting business in South Korea, coping with higher electricity costs and tougher regulations, Korea Zinc has reported profits for the past straight 98 quarters. Young Poong's CEO has also been arrested and charged this year over safety-related deaths at the company's Seokpo smelter, and is engaged in a lawsuit to nullify a South Korean authorities' environmental pollution ruling that may force the Seokpo smelter to close for two months. ($1 = 1,333.6000 won) Sign up here. https://www.reuters.com/markets/commodities/family-feud-over-koreas-zinc-giant-threatens-affect-supply-chain-2024-10-04/

2024-10-04 10:55

Western Sahara has long been scene of territorial dispute Friday's decision is final ruling after several appeals Polisario Front representative welcomes the ruling BRUSSELS, Oct 4 (Reuters) - The European Court of Justice ruled on Friday that the European Commission had breached the right of people in Western Sahara to self-determination by concluding trade deals with Morocco. Western Sahara, a tract of desert the size of Britain, has been the scene of Africa's longest-running territorial dispute since colonial power Spain left in 1975 and Morocco annexed the territory. Friday's decision is the final ruling after several appeals by the Commission, the European Union's executive arm. The EU signed fishing and agriculture agreements with Morocco in 2019 that also covered products from the Western Sahara. "The consent of the people of Western Sahara to the implementation... is a condition for the validity of the decisions by which the (EU) Council approved those agreements on behalf of the European Union," the court said. It said a consultation process that took place had not involved "the people of Western Sahara but the inhabitants who are currently present in that territory, irrespective of whether or not they belong to the people of Western Sahara". The court also ruled that melons and tomatoes produced in Western Sahara must now have their origin labelled as such. "Labelling must indicate Western Sahara alone as the country of origin of those goods, to the exclusion of any reference to Morocco, so as to avoid misleading consumers," it said. The Commission told reporters it was currently analysing the judgements in detail. Morocco's foreign ministry did not immediately reply to a Reuters request for comment. 'HISTORIC VICTORY' The Western Sahara is led by the Algerian-backed Polisario Front that advocates for its own sovereignty. The Polisario declared the Sahrawi Arab Democratic Republic (SADR) in 1976. The United Nations brokered a ceasefire in 1991 ending a guerrilla war between Morocco and the Polisario and tried to organised a referendum. "It is a historic victory for the Sahrawi people that confirms the wrongdoings of the EU and Morocco and confirms the permanent sovereignty of the Sahrawi people over their natural resources," Oubi Bouchraya, the Polisario's representative to the United Nations in Switzerland, told Reuters. "It is the most eloquent response to the last unilateral position of France and others." Western powers including the United States in 2020 and most recently, France, have recognised a plan for autonomy for the people under Morocco's sovereignty which angered Algeria. Thousands of Sahrawi refugees have been stuck in limbo living in desert camps in Tindouf, Algeria. Bouchraya, who was in charge of the European Court case, added the EU had two options - to withdraw or negotiate with the "internationally recognised representative of the people of Western Sahara which is the Frente Polisario." Sign up here. https://www.reuters.com/world/ecj-rules-eu-morocco-trade-deals-invalid-western-sahara-2024-10-04/