Tag Archives: Commodities News (3rd Party)

BHP, Vale Samarco JV filed for Brazilian bankruptcy protection | Instant News


FILE PHOTO: Brazilian mining company Vale SA logo seen in Brumadinho, Brazil January 29, 2019. REUTERS / Adriano Machado / File Photo

RIO DE JANEIRO (Reuters) – Samarco Mineracao SA, a joint venture between Brazilian miner Vale SA and BHP Group Ltd, has filed for bankruptcy protection to prevent creditor claims from affecting its operations, Vale said in a securities filing Friday.

The collapse of the dam at the Samarco mining complex in 2015 killed 19 people and severely polluted the Doce River with mining waste, one of Brazil’s worst environmental disasters. The facility, which resumed production in December, was the focus of significant litigation from bondholders with nearly $ 5 billion in debt.

“The filing (judicial reorganization) is needed to prevent ongoing legal action … from affecting Samarco’s ability to produce, send, receive for its exports and to fund normal activities,” the company said.

Vale said the filing for bankruptcy protection would not affect Samarco’s ability to pay compensation to those affected by the 2015 dam explosion. It said negotiations outside the court with creditors had slowly failed over time.

The court reorganization request, filed in the state of Minas Gerais, is roughly similar to the United States’ Chapter 11 bankruptcy filing.

Samarco has $ 4.7 billion in financial debt from unrelated parties, Vale said. In the years following the Samarco disaster, Samarco has negotiated with creditors to reach a restructuring agreement. However, those talks slowed down in 2019 following changes to dam regulations in Brazil, which materially affected operations at Samarco, Vale said.

In 2019, another dam exploded at the Vale mine in Brazil, killing some 270 people and prompting tightening of rules governing mining dams.

Most of the debt is now held by “investors active in distressed asset markets,” rather than original bondholders at the time of the disaster, Vale said.

Reporting by Gram Slattery; Edited by Christian Plumb and Will Dunham

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Petrobras Brasil, the government approved the rules for a potential Sepia, Atapu sale | Instant News


FILE PHOTO: The Petrobras logo is seen in front of the company’s headquarters in Sao Paulo 23 April 2015. REUTERS / Paulo Whitaker / File Photo

RIO DE JANEIRO (Reuters) – The board of Brazil’s state-owned oil company Petrobras has agreed a deal with the government on compensation to be paid to Petrobras in the event of an auction of reserves in two offshore oil regions, the company said. on Friday.

Petroleo Brasileiro SA, the company’s official title, will receive $ 3.253 billion if the reserves from the Atapu field are auctioned off, and $ 3.2 billion if the reserves from Sepia are sold. Payments will be made for roughly a decade.

The government tried and failed to auction off reserves in the offshore Atapu and Sepia oil blocks in 2019, although officials want to try again. Since Petrobras has carried out exploration and development work in the area, the company is entitled to compensation.

Reporting by Gram Slattery; Edited by Leslie Adler and Aurora Ellis

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Column: Resource-rich Australia shows the strangeness of any super commodity cycle | Instant News


LAUNCESTON, Australia (Reuters) – For those looking for evidence of a new commodity supercycle, and for those skeptical of a sustainable resource boom, Australian government forecasters have covered it.

An autonomous truck prepares to load iron ore at Fortescue Metals Group (FMG) Chichester Hub Australia, which includes the Christmas Creek iron ore mine, in the Pilbara region, southeast of the coastal city of Port Hedland in Western Australia, 29 November 2018. REUTERS / Melanie Burton

The government’s latest Quarterly Resources and Energy Report, released on Monday, describes how some commodities surged during last year’s coronavirus pandemic, as well as how the gains were not comprehensive and may not be easily sustained.

The headline that caught the media’s attention was that the country’s resource and energy exports would hit a record A $ 296 billion ($ 226 billion) in the fiscal year to June 30, 2021.

Australia is the world’s largest exporter of iron ore, liquefied natural gas (LNG) and coking coal, which is used to make steel.

Indonesia ranks second behind Indonesia for thermal coal and third in copper ore shipments, and is a major producer of aluminum and alumina, the raw materials used to make refined metals.

Australia is also the third largest gold producer in the world and the largest net exporter of precious metals, and is a major supplier of battery metals such as nickel and lithium.

The outstanding performance for the country’s resource sector this fiscal year was driven largely by the top iron ore exports, which were estimated at A $ 136 billion, or just under half, of the total export value, according to a report compiled by the Office. Chief Economist of the Ministry of Industry, Science, Energy and Resources.

This is up from the A $ 104 billion iron ore exports in fiscal 2019/20, which was achieved at higher volumes (up 4%) and prices (up 41%).

The massive boom in iron ore revenue is largely a story fabricated in China, the world’s largest importer of steel spent on boosting its economy after being hit by the lockdown imposed to stop the spread of COVID-19.

The Chinese impact can be seen in several other Australian commodities, with copper export revenues up 20% to A $ 12 billion despite volumes shipped slightly lower.

However, it should be noted that apart from iron ore and copper, only the export value of gold increased in 2020/21, to A $ 29 billion from A $ 25 billion.

Australia’s other major resource and energy exports have declined, including LNG, crude oil, alumina, aluminum, zinc, lithium and both types of coal.

Lower prices for most of the fiscal year were largely to blame, although these have started to recover over the past few months.

SUPERCYCLE, WHAT SUPERCYCLE?

Much of the commodity super cycle story is built around high demand for resources from China, coupled with a synchronous boost from many other parts of the world as countries act to increase growth through infrastructure spending.

There are also expectations that supply for key commodities will struggle to keep pace, given weak investment spending by producers in response to sharp falls in prices in the early stages of the pandemic.

The Australian government report lends credibility to the demand side of the supercycle vision, but only for the commodities most exposed to China’s industrial strengths, namely iron ore and copper.

While others, including battery metals, are also showing signs of recovery, energy products have been underpinned by temporary factors, such as a reduction in producer production in the case of crude oil and a cold northern winter for LNG.

Where the report becomes more interesting is in its long-term view, which doesn’t see much of a demand-driven super cycle, with Australian energy resources and exports expected to rise to A $ 321.1 billion by 2025/26, a growth rate. a combined annual rate of only 1.7%.

It’s going to be a solid, unspectacular result, albeit far from being a supercycle story.

Digging into the breakdown shows that the commodity reports are expected to be most correlated with the energy transition, with export revenues from lithium expected to surge by about 440% from the current fiscal year to A $ 5.4 billion in 2025/26, while nickel will nearly double fold. to A $ 6.5 billion, and copper up 33% to A $ 16 billion.

In contrast, iron ore, this year’s star to the end of June, is expected to fade by then to A $ 104 billion – the same level as in 2019/20 – while LNG will remain relatively stable and both coal values ​​will decline. .

Overall, the report points out two things, first that the evidence for the emerging commodity supercycle is somewhat mixed, and second that while some commodities are likely to perform well in the coming years, profits will not extend to all.

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Petrobras Brasil fired the manager after investigating stock trading | Instant News


RIO DE JANEIRO (Reuters) – Brazil’s Petrobras has fired a top-level manager after deciding he had traded company stock in the days before it released its financial results, the company said on Monday.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes

Earlier on Monday, four sources with knowledge of the matter told Reuters that Claudio Costa, Petrobras’ executive manager for human resources, sold shares during the company’s “quiet period” before the results were released in late February, in violation of Brazilian regulations.

The trade took place shortly before Brazilian President Jair Bolsonaro announced he was sacking Chief Executive Roberto Castello Branco in February, a development that sent Petrobras’ stock swirling, said the people, who requested anonymity to discuss personal matters.

“The executive manager for human resources was dismissed from the company today,” said Petrobras, citing legislation that prohibits trading in the securities of companies linked to him in the 15 days before the release of the financial statements.

Costa referred Reuters to the press office of Petroleo Brasileiro SA, the company’s official title.

Three sources said the company considered trading timing important, but Petrobras had yet to determine whether any laws relating to insider trading had been violated.

Castello Branco has personally agreed to the dismissal, said one of the sources.

Petrobras said Pedro Brancante, Castello Branco chief of staff, would replace Costa on a temporary basis.

Castello Branco ‘s dismissal came after the company raised domestic fuel prices by more than 30% in less than two months, angering Bolsonaro, whose constituency includes truck drivers who frequently complain about diesel prices. The incident sent investors out, with Brazil-listed preferred stock falling more than 20% in one day.

Castello Branco will be formally replaced in mid-April by Joaquim Silva e Luna, a retired general who previously managed the Itaipu hydroelectric dam on the Paraguay border and has no experience in the oil and gas sector.

Reporting by Gram Slattery, Sabrina Valle and Marta Nogueira; Additional reporting by Jamie McGeever in Brasilia; Written by Ana Mano; editing by Jonathan Oatis and Richard Pullin

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Petrobras Brasil fired the manager after investigating stock trading | Instant News


RIO DE JANEIRO (Reuters) – Brazil’s Petrobras has fired a top-level manager after deciding he had traded company stock in the days before it released its financial results, the company said on Monday.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes

Earlier on Monday, four sources with knowledge of the matter told Reuters that Claudio Costa, Petrobras’ executive manager for human resources, sold shares during the company’s “quiet period” before the results were released in late February, in violation of Brazilian regulations.

The trade took place shortly before Brazilian President Jair Bolsonaro announced he was sacking Chief Executive Roberto Castello Branco in February, a development that sent Petrobras’ stock swirling, said the people, who requested anonymity to discuss personal matters.

“The executive manager for human resources was dismissed from the company today,” said Petrobras, citing legislation that prohibits trading in the securities of companies linked to him in the 15 days before the release of the financial statements.

Costa referred Reuters to the press office of Petroleo Brasileiro SA, the company’s official title.

Three sources said the company considered trading timing important, but Petrobras had yet to determine whether any laws relating to insider trading had been violated.

Castello Branco has personally agreed to the dismissal, said one of the sources.

Petrobras said Pedro Brancante, Castello Branco chief of staff, would replace Costa on a temporary basis.

Castello Branco ‘s dismissal came after the company raised domestic fuel prices by more than 30% in less than two months, angering Bolsonaro, whose constituency includes truck drivers who frequently complain about diesel prices. The incident sent investors out, with Brazil-listed preferred stock falling more than 20% in one day.

Castello Branco will be formally replaced in mid-April by Joaquim Silva e Luna, a retired general who previously managed the Itaipu hydroelectric dam on the Paraguay border and has no experience in the oil and gas sector.

Reporting by Gram Slattery, Sabrina Valle and Marta Nogueira; Additional reporting by Jamie McGeever in Brasilia; Written by Ana Mano; editing by Jonathan Oatis and Richard Pullin

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