Tag Archives: Metals & Mining (TRBC level 3)

Adani’s Australian coal unit is back in the spotlight after the name change | Instant News


MELBOURNE (Reuters) – India’s Adani company ADEL.NS, which has drawn criticism in parts of Australia for developing new thermal coal mines, has again attracted attention by changing the name of the Australian unit to Bravus Mining and Resources.

The rebrand comes as miners prepare to ship their first coal next year in the face of years of vocal opposition from climate change activists, whose chants “Stop Adani” became a marketing slogan plastered on T-shirts and earrings.

The opposition ultimately helped swing Australia’s national elections last year toward a conservative coalition victory, as workers in coal-growing regions voted to support new jobs.

“We will continue to stand up and serve our community, no matter how brave we are, and Bravus, our new name, reflects this intention,” Chief Executive David Boshoff said in a statement.

Bravus is building a 10 million tonne per year mine and railroad in the northern state of Queensland even as climate change activists continue to target bankers, insurance companies and their suppliers.

It has employed more than 1,500 people and issued more than A $ 1.5 billion ($ 1.08 billion) in tenders, he said.

But some are now debating Adani’s new name, with Greenpeace and a scholar from the Australian National University saying Latin for ‘brave’ is not bravus.

“‘Bravus’ is … based on the Latin ‘barbarus’, which means barbaric,” Greenpeace said in a statement. The word itself has many connotations as a cruel enemy of civilization.

Chris Bishop, a lecturer in classical studies at ANU in Canberra says in English “the word ‘Bravo’ (which comes from an older word bravus) can mean ‘mercenary, murderer or a person of despair.”

Adani stayed by the definition when contacted by Reuters.

“The new name Bravus comes from the word ‘brave’ or ‘brave’. This includes the suffix ‘we’, highlighting our inclusive nature as a company, “said a company spokesman.

Another coal group also changed its name this year. Australian coal lobby group Coal21 became Low Emission Technology Australia (LETA) in August, while Arch Coal changed to Arch Resources ARCH.N in May.

($ 1 = 1.3949 Australian dollars)

Reporting by Melanie Burton; Edited by Ana Nicolaci da Costa

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Timeline: Tensions between China and Australia over commodity trading | Instant News


BEIJING (Reuters) – Australia’s relations with China’s main trading partner deteriorated in 2018 when it became the first country to publicly ban China’s Huawei. [HWT.UL] of its 5G network, and deteriorated after Canberra requested an investigation into the origins of the coronavirus.

Continued diplomatic retaliation has followed, including raids on Chinese journalists’ homes in Australia, the evacuation of several Australian journalists from China, and a series of trade measures imposed by China on Australian exports.

China is by far Australia’s top overall export market, valued at $ 104 billion in 2019, according to the International Monetary Fund (IMF), so a prolonged trade cut could damage Australia’s economy.

Australian shipments of beef, barley and coal worth billions of dollars have been most affected by the recent moves, and China could easily find alternative supplies.

Graph – Australian commodity exports to China:

Iron ore – Australia’s top export and critical material for China’s large steel sector – has so far been spared the crossfire, as has Australian LNG.

Below is a timeline of how commodity markets have been affected by rising tensions between countries:

NOVEMBER 2020

China has rejected Australian calls to cancel 80.5% anti-dumping and anti-subsidy duties on barley exports.

Beijing banned shipments of barley from Australia-based grain exporter Emerald Grain, which is owned by Sumitomo Corp. Japan

Australia suspended shipments of rock lobsters to China’s top market after Beijing imposed a new live seafood inspection that includes inspection of trace minerals and metals.

China’s Foreign Ministry said Chinese customs repeatedly found biohazards in Australian wood after media reported that Beijing had stopped importing wood from Australia’s northeastern state of Queensland.

China’s Foreign Ministry said the decline in imports of Australian products such as wine, coal and sugar was the result of buyers’ own decisions, after media reports stated that Beijing had warned importers to stop buying Australian goods.

China is expected to block imports of sugar, red wine, lobster, barley, coal and copper ore and concentrate from Australia, according to media reports.

OCTOBER 2020

Australia is investigating reports that China has orally instructed buyers to avoid supplies of Australian coal.

China has ordered cotton mills to stop buying Australian supplies or run the risk of 40% tariffs. China is the largest buyer of Australian cotton, with a trade value of around A $ 900 million ($ 637 million) during the 2018/19 harvest year.

31 AUGUST / SEPTEMBER 2020

China suspended imports of barley from Australia’s biggest grain exporter CBH Grain after the pests were discovered, and ordered stricter inspections of Australian wheat and barley.

Australia is the largest supplier of barley to China, exporting about A $ 1.5 billion to A $ 2 billion annually, which is more than half of its exports.

AUGUST 2020

China, the top export market for Australian wines, launched anti-dumping and anti-subsidy probes on several Australian wines.

MAY 2020

China hit Australian barley with anti-dumping and anti-subsidies duties totaling 80.5% from May 19, with duties expected to last five years.

It also stopped beef imports from Australia’s four largest meat processors.

FEBRUARY 2019

The port of Dalian in northern China bans imports of Australian coal and limits overall coal imports from all sources by the end of 2019 to 12 million tonnes. (here)

Reporting by Shivani Singh; editing by Jason Neely and Rashmi Aich

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Brazilian miner Vale expects stronger iron ore sales in the fourth quarter | Instant News


RIO DE JANEIRO (Reuters) – Brazilian miner Vale SA VALE3.SA has restored iron ore inventories in the third quarter and will reduce the gap between production and sales in the coming months, potentially bringing relief to tight global supplies for key steelmaking materials, company executives said on Thursday.

FILE PHOTO: The Vale SA logo is depicted in Rio de Janeiro, Brazil, 7 August 2017. REUTERS / Ricardo Moraes / File Photo

In talks with analysts about Vale’s quarterly results, Chief Executive Officer Eduardo Bartolomeo and executive director Marcello Spinelli said restoring inventories in China would give producers more flexibility on future sales.

The move will help stabilize global supply and demand for raw materials, they said.

Vale shares rose nearly 3% to 62 reais in Sao Paulo following the quarterly financial results on Wednesday evening and the company announcement on Thursday.

The second largest iron ore producer in the world increased production by 31% in the quarter compared to the previous three months. But it surprised the market by holding off part of its production to rebuild stocks, helping push international iron ore prices to a six-year high in September.

In the fourth quarter, Vale will next recover lost production after a dam in January 2019 exploded near the town of Brumadinho.

Executives said that the company will meet the lower limit of the 310-330 million tonnes guidance for 2020, but without room to accommodate unforeseen events that could reduce production and sales, such as the possible impact of heavy rains due to the “La Niña climate phenomenon,” they said.

Future production by Vale, whose biggest market is China, will be sold rather than stored, meaning inventory stock will be replenished at a much lower rate between 2021 and 2022, they said.

Future iron ore prices have been declining in recent weeks on expectations that supplies coming from Brazil and Australia, the world’s biggest iron ore producers, may recover in the coming months.

Vale said it was in talks with trading company Trafigura [TRAFGF.UL] to sell its nickel and cobalt operations in New Caledonia, in French Polynesia.

Brazilian miners have been trying for years to sell losing units, which never reach full capacity and have a history of acid spills. Executives said Vale will carry out maintenance work in 2021 as it continues negotiations with potential buyers and union workers opposing the sale, instead of closing the unit.

Reporting by Sabrina Valle and Roberto Samora, additional reporting by Gram Slattery; editing by Stephen Eisenhammer, Diane Craft and David Evans

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Traumatic dam damage to the valley’s dam increases the amount of ESG funding in Brazil | Instant News


RIO DE JANEIRO (Reuters) – Many Brazilian investors – have been blown away by iron ore miner Vale SA VALE3.SA tough cash flow – poised to forgive the company in the months following the deadly dam disaster in 2019, piling back into its stock after the initial sell-off.

FILE PHOTO: A rescue worker reacts during a demonstration to honor the victims of the dam collapse belonging to Brazilian mining company Vale SA, in Brumadinho, Brazil February 25, 2019. REUTERS / Washington Alves / File Photo

But not everyone is willing to go on as if nothing had happened.

The two companies’ deadly dam disaster in three years is a formative moment for ethical investment in Brazil, where criteria based on environmental and governance concerns have long been dismissed as ideological.

“Our funds are suffering a lot. Vale has been our top position so far, ”said Marcio Correia, stock manager at Rio de Janeiro-based JGP, who shared the same suffering with other fund managers as stocks lost a quarter of their value in the days after the dam exploded.

“We recognize that we are ignoring the risks associated with mining, the climate problem, and we decided to take them seriously.”

In response, the 34 billion reais ($ 6.07 billion) asset management firm co-founded in the 1990s by Paulo Guedes, now Brazil’s economy minister, sold two-thirds of its stake in Vale.

That August, it also established its first ESG-guided special fund – environmental, social and governance criteria.

Other local investors are also starting to realize that ESG issues have major financial implications.

“The Vale disaster changed the game in Brazil,” said Eduardo Dumans, a Sao Paulo-based Constellation asset management partner.

As of September this year, some 20 self-designed sustainable funds had attracted about 1 billion reais, double the 18 months earlier, said the association of Brazilian financial institutions, Anbima. The country is still lagging behind international trends.

The three leading ESG investment companies in Brazil manage less than 50 billion reais. Two of these have funds that do not exclude all polluting industries, although they use ESG data to help decide on investments.

Worldwide, funds integrating ESG criteria managed to hit $ 30 trillion when the Brumadinho dam disaster occurred, figures from the Global Sustainable Investment Alliance show.

“If Vale is committed to change, it will be because of international investors, not because of investors in Brazil,” said Fabio Alperowitch, portfolio manager of Fama, a 2.5 billion reais company known as a pioneer of sustainable investing in Brazil.

But he said ESG was finally gaining popularity in Brazil.

“I saw all of this with a mixture of hate and love. I have been advocating for this for 30 years and for a long time nobody cared, “he said. “It’s become trendy now.”

SECURITY OBSESSION

Vale has taken action to try to regain trust.

“Safety has become an obsession, and the company believes that integrating ESG into our routines will be critical to reducing Vale’s risk,” he said in written response to questions from Reuters.

This has set aside 18.6 billion reais to clean and restore the environment and to compensate the victims after the dam exploded in 2019. So far, it has spent more than 10 billion reais of that amount.

Its efforts to address the ESG issue helped persuade rating agency Moody’s to restore Vale’s investment rating on October 1.

Still Vale has the lowest corporate rating multiple of the top global miners, based on the company’s value against earnings before interest, taxes, depreciation and amortization ratio (EBITDA), a commonly used metric.

The JGP and other ethics-focused Brazilian fund said Vale’s decline in value reflected continuing investor doubts about its ability to meet ESG targets without compromising production.

Recovering his reputation has been particularly difficult because Brumadinho collapsed in January 2019, killing 270 people, just over three years after another dam exploded in Samarco in November 2015 killing 19 people in Brazil’s worst environmental disaster.

JGP has ruled out buying Vale shares until August 2021 – which will mark two years since the creation of a special ESG fund.

Correia said the ban could be extended unless Vale reassured investors of its commitment to good practices and measures to prevent new accidents, protect the environment and improve its behavior when mining on indigenous lands.

Responding to a Reuters question, Vale said its safety measures include reducing the use of dams that store mining waste known as tailings to support safer dry stacking.

In addition, it is said that 20% of the long-term compensation target for senior management will be based on ESG performance without providing a specific timeframe.

But the Dumans at Constellation, which has 13 billion reais under management and includes Brazilian billionaire Jorge Paulo Lemann among minority stakeholders, said he would not consider Vale.

As well as ESG, he said Constellation avoids volatile asset classes like metals.

But without risk, there is no reward. Iron ore prices hit a six-year high in mid-September making major iron ore producer Vale appear cheap.

“The tricky thing is that Vale is cheaper than peers so it attracts investors,” said Correia.

Reporting by Sabrina Valle; additional reporting by Simon Jessop and Ross Kerber. Edited by Christian Plumb and Barbara Lewis

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Traumatic dam damage to the valley’s dam increases the amount of ESG funding in Brazil | Instant News


RIO DE JANEIRO (Reuters) – Many Brazilian investors – have been blown away by iron ore miner Vale SA VALE3.SA tough cash flow – poised to forgive the company in the months following the deadly dam disaster in 2019, piling back into its stock after the initial sell-off.

FILE PHOTO: A rescue worker reacts during a demonstration to honor the victims of the dam collapse belonging to Brazilian mining company Vale SA, in Brumadinho, Brazil February 25, 2019. REUTERS / Washington Alves / File Photo

But not everyone is willing to go on as if nothing had happened.

The two companies’ deadly dam disaster in three years is a formative moment for ethical investment in Brazil, where criteria based on environmental and governance concerns have long been dismissed as ideological.

“Our funds are suffering a lot. Vale has been our top position so far, ”said Marcio Correia, stock manager at Rio de Janeiro-based JGP, who shared the same suffering with other fund managers as stocks lost a quarter of their value in the days after the dam exploded.

“We recognize that we are ignoring the risks associated with mining, the climate problem, and we decided to take them seriously.”

In response, the 34 billion reais ($ 6.07 billion) asset management firm co-founded in the 1990s by Paulo Guedes, now Brazil’s economy minister, sold two-thirds of its stake in Vale.

That August, it also established its first ESG-guided special fund – environmental, social and governance criteria.

Other local investors are also starting to realize that ESG issues have major financial implications.

“The Vale disaster changed the game in Brazil,” said Eduardo Dumans, a Sao Paulo-based Constellation asset management partner.

As of September this year, some 20 self-designed sustainable funds had attracted about 1 billion reais, double the 18 months earlier, said the association of Brazilian financial institutions, Anbima. The country is still lagging behind international trends.

The three leading ESG investment companies in Brazil manage less than 50 billion reais. Two of these have funds that do not exclude all polluting industries, although they use ESG data to help decide on investments.

Worldwide, funds integrating ESG criteria managed to hit $ 30 trillion when the Brumadinho dam disaster occurred, figures from the Global Sustainable Investment Alliance show.

“If Vale is committed to change, it will be because of international investors, not because of investors in Brazil,” said Fabio Alperowitch, portfolio manager of Fama, a 2.5 billion reais company known as a pioneer of sustainable investing in Brazil.

But he said ESG was finally gaining popularity in Brazil.

“I saw all of this with a mixture of hate and love. I have been advocating for this for 30 years and for a long time nobody cared, “he said. “It’s become trendy now.”

SECURITY OBSESSION

Vale has taken action to try to regain trust.

“Safety has become an obsession, and the company believes that integrating ESG into our routines will be critical to reducing Vale’s risk,” he said in written response to questions from Reuters.

This has set aside 18.6 billion reais to clean and restore the environment and to compensate the victims after the dam exploded in 2019. So far, it has spent more than 10 billion reais of that amount.

Its efforts to address the ESG issue helped persuade rating agency Moody’s to restore Vale’s investment rating on October 1.

Still Vale has the lowest corporate rating multiple of the top global miners, based on the company’s value against earnings before interest, taxes, depreciation and amortization ratio (EBITDA), a commonly used metric.

The JGP and other ethics-focused Brazilian fund said Vale’s decline in value reflected continuing investor doubts about its ability to meet ESG targets without compromising production.

Recovering his reputation has been particularly difficult because Brumadinho collapsed in January 2019, killing 270 people, just over three years after another dam exploded in Samarco in November 2015 killing 19 people in Brazil’s worst environmental disaster.

JGP has ruled out buying Vale shares until August 2021 – which will mark two years since the creation of a special ESG fund.

Correia said the ban could be extended unless Vale reassured investors of its commitment to good practices and measures to prevent new accidents, protect the environment and improve its behavior when mining on indigenous lands.

Responding to a Reuters question, Vale said its safety measures include reducing the use of dams that store mining waste known as tailings to support safer dry stacking.

In addition, it is said that 20% of the long-term compensation target for senior management will be based on ESG performance without providing a specific timeframe.

But the Dumans at Constellation, which has 13 billion reais under management and includes Brazilian billionaire Jorge Paulo Lemann among minority stakeholders, said he would not consider Vale.

As well as ESG, he said Constellation avoids volatile asset classes like metals.

But without risk, there is no reward. Iron ore prices hit a six-year high in mid-September making major iron ore producer Vale appear cheap.

“The tricky thing is that Vale is cheaper than peers so it attracts investors,” said Correia.

Reporting by Sabrina Valle; additional reporting by Simon Jessop and Ross Kerber. Edited by Christian Plumb and Barbara Lewis

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