With annual production capacity of 120 million metric tons, the project in the African nation’s southeast is set to be the world’s largest mine for the highest grade of iron ore, key to the green transition in the global steel value chain.

Simandou has four mining blocks with two in the northern region developed by a consortium of Singapore-based Winning International Group, Weiqiao Aluminium, which is part of China Hongqiao Group, and United Mining Suppliers.

Baowu has become a key shareholder after completion of the transfer in June of shareholding rights by Winning Consortium Simandou (WCS), as it is known.

“Because Simandou is rich in high grade-resources with favourable mining conditions, production cost will be relatively competitive,” the company said in a briefing on its third-quarter result.

The company hopes to optimise its ore blending structure after Simandou starts production, it added.

Baosteel is a unit of state-owned China Baowu Steel Group, the world’s largest steelmaker by output.

The company also said the building for its zero-carbon plant, with an investment of 4.5 billion yuan ($631 million) and powered by green hydrogen and green electricity in Zhanjiang in the southern province of Guangdong, will be completed in 2025.

On Tuesday, Baosteel reported a plunge of nearly 65% in its third-quarter net profit, undermined by a fall in steel prices.

Its export orders in the first three quarters hit a record high of 4.66 million tons, well on track for its 2024 target of 6 million tons.

($1=7.1360 Chinese yuan renminbi)

(Reporting by Amy Lv in Beijing and Farah Master in Hong Kong; Editing by Christian Schmollinger and Clarence Fernandez)

The world’s biggest miner walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. The upcoming end to a six-month block on BHP making another approach had raised speculation a deal may again be under scrutiny.

“We made an approach to Anglo American earlier this year … we thought there was an opportunity here to create something unique and special, a bit of a sort of a one plus one equals three opportunity,” Ken MacKenzie said at BHP’s annual meeting.

“Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we.”

As evidence, MacKenzie pointed to BHP’s C$4.5 billion ($3.25 billion) deal with Canada-listed Lundin Mining in July to jointly take over developer Filo Corp in a move to grow their copper holdings in South America.

(By Melanie Burton; Editing by Christian Schmollinger and Sonali Paul)

Australia is the world’s biggest supplier of seaborne iron ore, accounting for around half of global supply. But the Pilbara grades dug up from the country’s west are generally regarded as too low to be turned into steel without using coal.

That means as steel makers decarbonize, they are turning elsewhere for iron ore, which could hit Australia’s top export earner, Otranto said at the IMARC conference in Sydney.

“The message is, take the opportunity,” he said on the sidelines of the conference. “We have an abundance of solar and wind… so the logical next step is to get into downstream industries.”

Competition is growing from new green steel projects – made without the use of fossil fuels – in the Middle East, while Guinea’s giant Simandou iron ore mine is set to start up next year, he said.

“That’s a high grade deposit going straight into the steel mills in China,” he said of Simandou.

“Let’s not sit here with our head in the sand thinking it’s not going to happen again.”

Australia had the opportunity to help build Indonesia’s nickel industry but did not anticipate China’s speed and technical innovation, and its domestic industry suffered as a result.

“The Chinese … built the biggest nickel industry the world has ever seen and … took out an entire market sector in four years,” he said, referring to the transformation of Indonesia’s nickel industry into the world’s dominant supplier, driven by Chinese stainless steel giant Tsingshan.

That flood of supply has hammered nickel producers around the globe, including in New Caledonia and Australia.

Otranto said a similar scenario could play out in Australia’s iron ore industry which, along with the Australian government, was underplaying the threat to the sector and that government and industry need to collaborate to lower power costs in particular.

“We have to bring in Chinese manufacturing of solar panels and wind turbines, because they’re doing it better than anyone else,” he said. Automating robots for installation would cut labour costs to help make green iron production economic, he said.

The world needs Australia’s iron ore to sustain steel production so answers must be found.

“We cannot lose the opportunity to place the 600 to 700 million tons of iron ore that Australia ships out,” he said. “So we have to work unbelievably hard, even harder than we’re doing now.”

The world’s fourth largest iron ore miner, Fortescue will use green hydrogen from solar farms at its Christmas Creek operations to start producing 2,000 tons per year of green iron using hydrogen next year.

On Monday, Brazilian miner Vale, the world’s second biggest iron ore producer, said it had partnered with China’s Jinnan Steel Group to build an iron ore beneficiation plant in Oman to make high quality pellet.

(By Melanie Burton; Editing by Sonali Paul and Lincoln Feast)

The facility will be located in Sohar, a port city about 200 km north of the capital, Muscat. It will have the capacity to process 18 million tonnes of low-grade iron ore a year starting in 2027. The aim is to produce 12.6 million tonnes of high-grade concentrate annually.

Vale will invest $227 million to connect the plant to its pelletizing facilities in the region. Jinnan will invest about $400 million to build and operate the plant, which it will own.

“This project brings together Brazil’s capacity to produce high-quality iron ore and Oman’s prime location and infrastructure to enhance integration between the two countries, while also reinforcing our partnership with China through Jinnan,” Vale’s new CEO Gustavo Pimenta said in a release.

The iron ore is to be transformed into a higher-quality concentrate for the production of premium pellets and, in the future, briquettes, with a reduced environmental impact.

This marks Jinnan’s first project in Oman, supporting the country’s industrial ambitions. The company is known for its leading edge in magnetic separation technology.

Vale intends to replicate this investment model across its mega hubs. The miner has announced three mega hubs in the Middle East (Oman, Saudi Arabia, and the United Arab Emirates) and has signed agreements to develop similar projects in Brazil and the United States.

Shares in Vale gained 1.7% to $62.76 apiece by mid-Monday afternoon in New York, valuing the company at $284.8 billion.

The move sets a precedent for future private-sector missions beyond Earth’s orbit as it gives AstroForge both approval for their upcoming mission, Odin, and the green light to establish communication networks with their ground partners

The Odin mission, to be launched in January 2025, is part of the firm’s ambitious plan to harvest precious metals from asteroids, offering an alternative to Earth’s dwindling critical resources.

This is not the first launch for the company. In April 2023, AstroForge launched a small cubesat called Brokkr-1 on a SpaceX Transporter flight, but was unable to transmit the necessary commands to demonstrate its space-based minerals and metals refining technology. 

The company also ran into issues when preparing a second mission, originally called Brokkr-2 and later renamed Odin, which is now ready to be launched.

A third attempt is planned for late 2025, when the company will launch Vestri. The craft  is about twice the size of Odin and is designed to return to the targeted metallic asteroid and dock with it by using magnets, as it is expected the asteroid will be rich in iron.

If successful, AstroForge plans to send a fourth mission, which will focus on extracting and refining asteroids’ metals before returning to Earth.

The Huntington Beach, California-based company is the most advanced private asteroid miner to date. Two previous companies, Planetary Resources and Deep Space Industries emerged about a decade ago, but neither company arrived on any asteroids and were eventually acquired and rerouted to other endeavours.

The fatal incident occurred at the SimFer port site of the project on Saturday and the company said is collaborating with its partners and relevant authorities to conduct a comprehensive investigation.

Chief executive Jakob Stausholm extended his condolences to the family, friends, colleagues and communities affected by the tragedy. 

This is Rio Tinto’s fifth fatality in 2024. Four employees died in January when a charter flight to the Diavik diamond mine in northern Canada crashed. Before this accident, Rio had five consecutive years without fatalities at its managed operations.

The world’s second largest miner obtained in July all necessary regulatory approvals to resume construction at its vast Simandou iron ore asset, the world’s biggest mining project.

The mine, which Rio is co-developing with a Chinese consortium, is set to be the world’s largest and highest grade new iron ore mine, adding around 5% to global seaborne supply when it comes on line. 

First production from Simandou is scheduled for next year. The mine will contribute an annual supply of nearly 120 million tonnes of high-quality iron ore once it reaches full capacity.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022. And judging by the performance of the top tier in the final quarter (BHP down 8% QTD, Rio Tinto –5%, Vale –3%, Glencore –5%, Newmont –9%, Zijin –5%, Freeport –7%) the gap won’t be closing anytime soon.

In contrast, Nvidia — the maker of chips highly prized for artificial intelligence (AI) computing — is up nearly 200% so far this year (and 2,600% over five). When comparing the graphics card maker’s stock valuation to the mining industry’s collective worth, it’s difficult not to wonder if something is not awry with how global investors appraise the industrial economy.  

Should Nvidia (or Microsoft or Apple for that matter) be worth more than twice the top 50 miners? Outside the top 50 the average market cap quickly shrinks to the low teens so Nvidia is in fact worth more than the entire listed mining industry. 

Even when extending the top 50 into metals and energy –  steel, aluminium and electricity companies often operate their own mines – Nvidia can still throw shade. BHP does not even crack the top 100 most valuable companies in the world and is worth less than Booking.com, and Temu and Zara’s owners, none of which can exactly be called the building blocks of the global economy. 

Nvidia briefly surpassed Apple on Friday to become the world’s most valuable company. Its market capitalization is approximately $3.5 trillion, just below Apple’s, which remains the highest-valued firm globally.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.35% higher at 783.5 yuan ($109.92) a metric ton.

The contract had earlier risen as much as 3.33% to 793.0 yuan, its strongest level since Oct. 17.

The benchmark December iron ore on the Singapore Exchange was 1.73% higher at $103.05 a ton, as of 0718 GMT.

Markets are now pricing in expectations of fiscal stimulus from China’s upcoming legislative meeting, said Atilla Widnell, managing director at Navigate Commodities.

However, China’s finance ministry has “potentially mistakenly set expectations too high”, with markets incorrectly interpreting the meeting as Chinese government spending and fiscal support for domestic construction and infrastructure projects, Widnell added.

While steel demand from end-users remains lacklustre, prices of major steel products may stabilize and rebound this week on stimulus expectations, Chinese consultancy Mysteel said.

China’s top legislative body will meet from Nov. 4-8, but there was no mention on the agenda of highly anticipated debt and other fiscal measures.

Earlier today, the People’s Bank of China launched a new lending tool to inject more liquidity into the market and support credit flow, as the bank remains under pressure to do more to hit Beijing’s economic growth target of 5% this year.

Meanwhile, China’s September industrial profits plunged, recording this year’s steepest monthly decline, due to factors such as insufficient demand and a sharp decline in producer prices.

Other steelmaking ingredients on the DCE leapt, with coking coal and coke rising 4.14% and 4.61%, respectively.

Steel benchmarks on the Shanghai Futures Exchange advanced further. Wire rod jumped 4.12%, rebar and hot-rolled coil climbed about 2.65%, and stainless steel ticked 0.4% higher.

($1 = 7.1282 Chinese yuan)

(By Gabrielle Ng; Editing by Sumana Nandy)

Ellison, who is managing director and a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated, and which sold mining equipment and parts. He did not declare the income from the supply contracts.

“There has been considerable media coverage since Oct. 19 and the board’s investigation has evolved to respond to statements that do not accord with the company’s understanding of the facts,” Mineral Resources said in a corporate statement Monday.

The company’s shares slumped 26% last week after a report that Ellison had struck a deal with the Australian Taxation Office to repay owed money.

(By Paul-Alain Hunt)

Bacci, who served as finance chief for pulp maker Suzano, will replace Murilo Muller, who is temporarily serving in the job.

Following Bacci’s resignation, Suzano’s new chief financial officer will be Marcos Moreno Chagas, the company announced in a separate filing also on Friday.

(By Andre Romani)

The agreement was signed in Brasília, the capital city, with President Luiz Inácio Lula da Silva in attendance.

In February, a federal judge ruled that the companies must pay up to 47.6 billion reais ($8.4 billion) in damages for the dam collapse, though the decision is still subject to appeal.

The Fundão dam burst occurred on November 5, 2015. Approximately 40 million cubic meters of mining waste destroyed communities and livelihoods, contaminated the Rio Doce and its tributaries, and reached the Atlantic Ocean.

In total, 49 municipalities were affected, either directly or indirectly, and 19 people lost their lives.

According to BHP, the agreement builds on the existing remediation and compensation efforts by the Renova Foundation in Brazil, which have thus far totalled 38 billion reais ($7.9 billion).

In addition to the amount already spent by Renova, the agreement includes 100 billion reais ($18 billion) in installments over 20 years to public authorities, municipalities, Indigenous peoples and traditional communities. Additional performance obligations for Samarco, estimated at 32 billion reais ($5.8 billion), are also included.

Payments to be completed over 15 years

The compensation covers programs for universal water sanitation, health initiatives, economic recovery, infrastructure improvements, and investment funds in education, culture, sports and food security.

The agreement also includes compensation payments of 95,000 reais ($17,000) per person for eligible fishermen and farmers in the affected areas.

“BHP Brasil’s expected outflows under the agreement align with BHP’s FY2024 Samarco dam failure provision of $6.5 billion, and no update is required to the existing provision at this time,” BHP stated.

“The Samarco Fundão dam failure was a terrible tragedy. It should never have happened and must never be forgotten,” said BHP CEO Mike Henry.

Payments are expected to be completed over approximately 15 years, with the first installment of 5 billion reais ($880 million) due within 30 days. The agreement remains subject to approval by the Brazilian Supreme Court.

BHP still faces a potential $47 billion payout in damages in a lawsuit in London’s High Court. The settlement in Brazil will not impact the UK case.

The plaintiffs include over 600,000 Brazilian citizens, 46 municipalities and 2,000 businesses, all challenging BHP’s role in the disaster.

In July, BHP and Vale agreed to equally share the cost of any damages resulting from the UK proceedings.

Shares of BHP rose 0.7% by 12:00 p.m. EDT. Vale stocks were up 3.4%.

Read More: BHP says claim it put profit over safety ‘unjustified’ in Brazilian dam collapse case

Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021, but like all governments has refrained from formally recognizing the Islamic fundamentalist group’s rule amid international concern over its human rights record and those of women and girls.

But the impoverished country could offer a wealth of mineral resources to boost Beijing’s supply chain security although it risks becoming a haven for militant groups threatening China’s Xinjiang region and huge investments in neighbouring Pakistan.

Selling Afghanistan’s lithium, copper and iron deposits to feed China’s enormous battery and construction industries would help the Taliban prop up their economy, which the UN says has “basically collapsed”, and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100% tariff lines,” Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Thursday, above a photo of him meeting acting deputy prime minister Abdul Kabir.

Afghanistan exported $64 million worth of goods to China last year, according to Chinese customs data, close to 90% of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China last year, the data shows, but Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment last September.

“In the Horn of Africa, China’s Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan,” said Eric Orlander, co-founder of the China-Global South Project.

“I don’t buy the whole strategic minerals line that we hear in Washington about how China is eyeing Afghanistan’s vast lithium reserves,” Orlander added, citing the cost and security challenges involved in extracting them.

“(China’s) answer to everything is build a road, and from that economic development will lead to peace and harmony.”

Several Chinese companies operate in Afghanistan, including the Metallurgical Corp of China Ltd, which has held talks with the Taliban administration over plans for a potentially huge copper mine, and was highlighted in an August feature in Chinese state media on Chinese companies rebuilding Afghanistan.

Chinese President Xi Jinping at a Beijing summit for more than 50 African leaders in September announced that from Dec. 1 goods entering his country’s $19 trillion economy from “the least developed countries that have diplomatic relations with China” would not be subject to import duties, without giving details.

The policy was then repeated on Wednesday by vice commerce minister Tang Wenhong at a press conference in Beijing on the preparations for upcoming China’s annual flagship import expo.

Lin Jian, a Chinese foreign ministry spokesperson, confirmed on Friday the policy would apply to Afghanistan, adding it would promote mutually beneficial trade and economic cooperation.

The Afghanistan embassy in Beijing did not respond to a request for comment.

Last October, Afghanistan’s acting commerce minister told Reuters the Taliban wanted to formally join Xi’s flagship “Belt and Road” infrastructure initiative.

Kabul has also asked China to allow it to be a part of the China-Pakistan Economic Corridor, a $62 billion connectivity project connecting China’s resource-rich Xinjiang region to Pakistan’s Arabian Sea port of Gwadar.

(By Joe Cash and Mei Mei Chu; Editing by Raju Gopalakrishnan)

Read More: Taliban says it signed mining deals worth over $6.5 billion

Technical teams from both companies will work closely on exploring pelletizing using the Pilbara fines and the application of biomass.

Rio’s flagship product Pilbara blended fines are typically used to make sintered ore, used in blast furnaces to produce hot metal.

And pelletization usually requires higher grade iron ore, which is helpful for reducing carbon emissions along the steel value chain.

“We are pleased to have reached a new milestone in steel carbon reduction … the low carbon transition in the steel industry needs high-quality raw material and massive technological innovation,” said Simon Farry, head of steel decarbonization at Rio.

Upstream mining giants have accelerated cooperation with their big consumers on decarbonizing the steel value chain to cope with climate change.

Rio Tinto last year signed a MoU with China Baowu, the world’s biggest steelmaker by volume, to develop projects aimed at enabling lower grade ore to be used in low-carbon steelmaking.

It’s rival BHP Group and Chinese steel company HBIS Group Co Ltd, agreed last March to trial carbon capture, utilization and storage (CCUS) technologies at the Chinese firm’s steel mills.

(By Amy Lv and Colleen Howe)

Still, Vale posted a $2.41 billion net profit for the quarter ended in September, well above analysts’ estimates for a $1.65 billion profit as polled by LSEG.

Vale reported a 10% decline in its net revenue year-on-year to $9.55 billion, almost in line with the $9.44 billion analysts had expected.

It had already released earlier this month its third-quarter sales and output report, which showed the highest iron ore production for a quarter since 2018, but realized prices of iron ore fines dropping 14%, weighing on its profit.

Its core profit as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $3.62 billion in the quarter, down 18% from a year earlier and also broadly meeting analysts’ estimates of $3.61 billion.

Vale said in the earnings report it booked an additional $956 million provision related to the deadly collapse of a dam at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, near the Brazilian city of Mariana in 2015.

The firm had already anticipated a similar impact last week as a final compensation deal approaches, with Vale saying on Thursday that it was set to sign the deal on Friday after years of talks with Brazilian authorities.

The most recent discussions were for the three miners to pay up 170 billion reais ($30 billion), with 100 billion reais of that to be paid over 20 years directly to public authorities.

Vale’s new management is eyeing a better quality portfolio with more focus on the client, CEO Gustavo Pimenta said in the earnings report. Pimenta, Vale’s former chief financial officer, joined as CEO earlier this month.

Pimenta said Vale aims to speed up efforts to offer high-quality product in its main iron ore business, while adding it plans to grow its base metal unit, particularly in copper.

In a separate filing on Thursday evening, Vale also raised its all-in cost guidance for copper for the year.

($1 = 5.6653 reais)

(By Marta Nogueira and Andre Romani; Editing by Kylie Madry and Sonali Paul)

Anglo said its copper output fell 13% in the July to September quarter, while rough diamond production decreased by 25% on cuts due to prolonged lower demand.

Its De Beers diamonds unit is exploring options for further output cuts in future, Anglo said.

For the first nine months of 2024, copper output fell 4% to 575,000 tons and diamond production was down 21% at 18.9 million carats.

Anglo still expects to produce 730,000-790,000 tons of copper and 23-26 million carats of rough diamonds this year, even as it assesses additional production cuts going forward.

Its shares, which have risen around 18% this year, opened up 2.2%.

The mining giant is restructuring its business to mainly focus on energy transition metal copper after fending off a $49 billion takeover offer from bigger rival BHP Group in May.

Copper will make up 60% of Anglo’s business after it sells its Australian steelmaking coal assets and nickel mines in Brazil, as well as divesting De Beers and its platinum business Amplats in South Africa.

Apart from its copper assets in Chile, Anglo will also retain iron ore mines in South Africa and Brazil, as well as the Woodsmith fertilizer project in the United Kingdom, which it has now slowed down.

Anglo said steelmaking coal’s production fell by 6% in the third quarter after shutting its Grosvenor mine in Queensland due to an underground fire.

The London-listed miner, the world’s third-largest exporter of metallurgical coal, lowered its yearly production guidance to 14-15.5 million tons from a previous forecast of 15-17 million.

Anglo said the final round of bidders for the coal assets was in place and it expected to announce the sale agreement within months.

(By Clara Denina and Felix Njini; Editing by Stephen Coates and Mark Potter)

The world’s fourth-largest iron ore miner shipped 47.7 million tonnes (Mt) of iron ore for the quarter ended Sept. 30, compared with 45.9 Mt shipped a year ago, exceeding a Visible Alpha consensus of 47.4 Mt.

In comparison, the company shipped 53.7 Mt in the previous quarter ending June 30.

The Perth-based miner also reaffirmed its iron ore shipments guidance for fiscal 2025.

(By Echha Jain and Shivangi Lahiri; Editing by Tasim Zahid)

The agreement will be signed in a ceremony attended by President Luiz Inacio Lula da Silva at 9 a.m. local time (1200 GMT) on Oct. 25, Lula’s office said.

Vale, BHP and Samarco said last week that the deal was expected to include a total compensation of 170 billion reais ($29.9 billion), with 100 billion reais of that to be paid through 20 years directly to public authorities.

The collapse of the dam at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, unleashed a wave of tailings in a disaster that killed 19 people, left hundreds homeless, flooded forests and polluted a major river.

The three mining firms have for years been negotiating a compensation agreement with Brazilian authorities, hoping a deal would end several court actions on the matter.

(By Lisandra Paraguassu; Editing by Chris Reese and Marguerita Choy)

Read More: BHP says claim it put profit over safety ‘unjustified’ in Brazilian dam collapse case

More than 600,000 Brazilians, 46 local governments and around 2,000 businesses are suing BHP over the 2015 collapse of the Mariana dam in southeastern Brazil, which was owned and operated by BHP and Vale’s Samarco joint venture.

The dam’s collapse unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River.

The claimants’ lawyers accused BHP of “cynically and doggedly” trying to avoid responsibility as the trial of a lawsuit worth up to 36 billion pounds ($47 billion), one of the largest in English legal history, began on Monday.

They also allege BHP contributed to the collapse of the dam by allowing it to be raised as part of an expansion project, despite an increasing risk of failure.

BHP, the world’s biggest miner by market value, is contesting liability and says the London lawsuit duplicates legal proceedings and reparation and repair programs in Brazil and should be thrown out.

The miner argues it did not own or operate the dam, which held mining waste known as tailings, and that Samarco operated independently. It also says it had no knowledge the dam’s stability was compromised before it collapsed.

BHP’s lawyer Shaheed Fatima told the court on Wednesday that the case against it was fundamentally flawed.

“The claimants appear to say that BHP was so motivated to make profits from their investment in Samarco that they got behind the wheel, they operated the business, they put profits before safety,” she said. “This is unrealistic and illogical.”

Fatima added: “The profits before safety allegation, that is particularly far-fetched and unjustified.”

She said that BHP’s former finance chief Peter Beaven, who is due to give evidence next month, said in a witness statement: “BHP had a culture which was embedded throughout the organization from top to bottom of safety before anything else.”

The ongoing 12-week trial to determine whether BHP is liable to the claimants comes as the Brazilian authorities’ negotiations with BHP, Vale and Samarco over a nearly $30 billion compensation deal continue.

Sources close to the negotiations told Reuters a final agreement could have an impact on the London lawsuit, a suggestion the claimants’ law firm Pogust Goodhead rejected.

(By Sam Tobin; Editing by Mark Potter)

Yet prices for all three EV battery inputs have fallen to such bombed-out levels that producers are curtailing output and deferring new projects.

This is partly a problem of oversupply. Explosive price rallies in 2021 and 2022 resulted in too much new production capacity being brought online too quickly.

But it is also a problem of demand.

The transition away from the internal combustion engine has by no means ground to a halt. Global new energy vehicle sales were up by 20% year-on-year in January-August, according to consultancy Rho Motion.

Rather, the mix of vehicles being sold and the evolution of battery chemistry have dramatically changed the metals demand dynamic.

The rise of the hybrids

Pure battery electric vehicle (BEV) sales have underperformed expectations due to buyers’ concerns about limited driving range and charging infrastructure.

By contrast, hybrid and plug-in hybrid cars, which have both a battery and internal combustion engine, have soared in popularity.

The increase in global sales of BEVs slowed to 10% year-on-year in the first eight months of 2024, while plug-in hybrid (PHEV) sales jumped 46%, according to Rho Motion.

This trend has been led by China, the world’s largest EV market. The key driver is the emergence of the extended range electric vehicle (EREV), a type of PHEV that uses the gasoline engine solely to charge the battery, giving the vehicle an extended driving range of more than 1,000 kilometres (621 miles).

EREVs now account for 31% of all plug-in hybrid sales in China, according to research house Adamas Intelligence, which expects them to enjoy similar success in both Europe and the United States.

Major automakers are embracing hybrids in all forms as a relatively low-cost transition technology between gasoline and pure electric vehicles.

Hybrids don’t need the same battery power as a BEV. Adamas calculates that battery pack capacity in a PHEV is a third of that in a BEV, which means a similar-sized reduction in the amount of lithium, nickel and cobalt used per vehicle.

Other metals, however, stand to benefit from the rise of the hybrids. Platinum and palladium, which are used to clean auto exhausts, have been granted an unexpected new lease of life.

Changing chemistry

While the new energy vehicle mix is changing, so too is battery chemistry.

Lithium-iron-phosphate batteries (LFP) have become the rising stars of the battery industry, accounting for around 40% of battery demand in 2023, more than double the share recorded in 2020, according to the International Energy Agency (IEA).

As with the new extended range hybrids, the LFP revolution is being led by China, where two-thirds of EV sales used this technology in 2023, the IEA estimates.

Chinese battery makers have turned what was once regarded as a low-power technology suitable only for short city commutes into a product that can compete with nickel-manganese-cobalt battery chemistries.

China’s CATL unveiled a new break-through LFP battery at the Beijing auto show in April. The Shenxing Plus boasts a driving range of 1,000 kilometres on a single charge, effectively eliminating range anxiety.

The only critical metal input for an LFP battery is lithium. It doesn’t require either nickel or cobalt, which makes an LFP battery both cheaper and more environmentally friendly than other chemistries.

The market has taken note. Demand forecasts for nickel and cobalt use in batteries have been steadily downgraded over the last year to factor in China’s pivot towards LFP technology.

Going global

European and US automakers have until now stuck with high-nickel chemistries in their EV batteries but that may be starting to change.

Both Ford Motor and General Motors have shown interest in using CATL’s LFP technology.

Moreover, while China has been the only mass-producer of LFP batteries since the 2010s, the core patents that enabled this dominance expired in 2022.

This has sparked interest outside China.

For example, the IEA has noted a surge of LFP investment in Morocco, which is home to the world’s largest phosphate reserves. Importantly, it also holds free-trade agreements with both the European Union and the United States.

A twisting road

Li Auto’s L6 family sports utility vehicle is an example of how hybrid and LFP technologies have come together to upset preconceived notions about the EV market.

Boasting what the company calls “the latest generation of lithium-iron-phosphate battery”, the vehicle has a range of 212 kilometres in pure battery mode and a range of 1,390 kilometres in mixed battery-engine mode.

The Li6 can accelerate from zero to 100 kilometres an hour in 5.4 seconds, which lays to rest any fear that LFP batteries can’t deliver the same performance as nickel-rich batteries.

Such products are good news for the broader energy transition, offering consumers a cheap, reliable alternative route to an all-electric future.

But they challenge the idea that the global auto market will jump straight from the internal combustion engine to a pure battery vehicle.

They also defy expectations that all EV batteries need nickel and cobalt to enhance power and performance.

What’s more, the battery revolution has only just begun. Battery makers are investing heavily in research and development with the goal of developing ever cheaper, more powerful batteries.

Even lithium is at risk of substitution from sodium-ion batteries as CATL and other Chinese companies such as BYD expand capacity for the new technology.

Sodium-ion batteries could cost up to 20% less than incumbent technologies and can be used for both stationary storage and compact urban EVs, according to the IEA.

They use no lithium but, depending on chemistry, need both nickel and manganese, which foreshadows the potential for more metallic twists in the unpredictable electric vehicle revolution.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Louise Heavens)

The agreement could be signed this week, nearly nine years after the 2015 disaster in the city of Mariana in southeastern Brazil that killed 19 people, left hundreds homeless, flooded forests and polluted the length of the Doce River.

Under the deal, the mining companies will pay 100 billion reais over 20 years to enable authorities to carry out a series of projects and measures to repair and compensate for the disaster.

The companies also will still have 32 billion reais in obligations to fulfill, including individual compensation to people affected by the disaster and environment recovery initiatives.

The total 170 billion reais in compensation includes 38 billion already paid by the mining companies since the dam collapse.

The agreement does not eliminate the possibility of new lawsuits related to damages that are still unknown today, should their connection with the dam rupture be proven at some point in the future, one of the sources said on condition of anonymity.

Still, the deal is expected to eliminate more than a hundred public civil actions against the miners in Brazil, and the companies expect that individual requests related to the Mariana disaster will be met in full by 2025, according to two sources familiar with the discussions.

The mining companies also hope that the class action lawsuits filed in London and the Netherlands will dry up following the final deal, the sources told Reuters.

“The main argument that the English used in their action when they started suing BHP is that in Brazil there is no resolution for this type of problem and that is why they needed to do it in England. This agreement proves exactly the opposite and therefore significantly weakens England’s case,” one of the sources told Reuters.

Another source said that, either way, the cases abroad put pressure on the companies in Brazil, which ended up accepting a much higher amount in the final deal than they were initially willing to pay.

English case

Law firm Pogust Goodhead is leading one of the biggest court cases in British legal history in London to determine whether BHP is liable. The case entered a decisive stage on Monday with the start of a 12-week trial.

Lawyer Ana Carolina Salomao, partner at Pogust Goodhead, stated that “there is no possibility” that the agreement in Brazil could invalidate the trial in England.

“The goal of the English lawsuit goes beyond financial compensation. It seeks to hold one of the largest corporations in the world accountable for its negligence and send the message that crimes like Mariana’s will not go unpunished,” she added.

In response to a Reuters request for comment, Vale said it “reaffirms its commitment to fully repair the damage caused by the dam collapse” and shared its understanding that the London lawsuit against BHP “deals with issues already covered in the actions underway in Brazil.”

A BHP representative said the miner “continues to be absolutely committed to finalizing the agreement to ensure full and definitive reparation and compensation in Brazil.”

In a statement, Samarco also underscored its commitment to fully repairing damages.

($1 = 5.6944 reais)

(By Marta Nogueira, Lisandra Paraguassu, Ricardo Britto and Luana Maria Benedito; Editing by Paul Simao)

China, which buys almost three-quarters of global seaborne iron ore, is likely to import as much as 120 million metric tons this month, according to vessel-tracking and port data.

This would be a strong rise from the official customs number of 104.1 million tons in September, and also represent an all-time high, eclipsing the previous record of 112.7 million in July 2020.

The strength in iron ore imports stands in sharp contrast to the softness in steel production, which slid for a fourth consecutive month in September, dropping to 77.07 million tons, down 1.1% from August and 6.1% from the same month in 2023.

China’s steel output for the first nine months of the year was 768.48 million tons, down 3.6% from the same period in 2023, according to data released by the National Bureau of Statistics last week.

If there is a positive from the September steel production data, it’s that the pace of decline slowed from the 10.4% on-year drop in August.

Whether the drop in steel output can be lifted to show an increase in the next few months largely depends on whether steel mills see rising demand on the back of Beijing’s stimulus efforts.

September was too early for any kick higher in steel demand, given the major stimulus announcements were just before month end.

However, if the measures to boost the ailing property sector do bear fruit, it’s likely to only result in an increase in actual demand in 2025.

This makes the rush to buy more iron ore seem somewhat premature.

Price driven imports

October’s imports are on track to reach 120.5 million tons, according to data compiled by commodity analysts Kpler, while LSEG analysts expect arrivals of 117.3 million tons.

It’s likely that steel mills and traders took heart from the stimulus efforts announced by Beijing, but lower spot prices for iron ore may also have boosted buying.

The price of Singapore Exchange contracts dropped to the lowest in 22 months in September, hitting $91.10 a ton on Sept. 10.

They then traded in a narrow range around that level until the end of the month, meaning that much of the iron ore arriving in October would have been secured at relatively low prices.

Iron ore prices did surge in the wake of the stimulus announcements, reaching a three-month peak of $110.55 a ton on Oct. 7, before easing back to end at $104.21 on Monday.

A more sober reflection of when China’s stimulus is likely to actually result in increased steel demand may have led to iron ore prices moderating, but it’s worth noting they have still held onto most of the gains made since the October low.

The risk is that the strong import volumes end up being added to inventories, which could act as a drag on further price gains even if steel output does start to recover.

Port inventories monitored by consultants SteelHome rose in the week to Oct. 18, hitting 147.2 million tons, up from a five-month low of 145.8 million the prior week.

Stockpiles have risen strongly in the past 12 months, rising from a seven-year low of 104.89 million tons in the last week of October 2023 to a recent high of 151.8 million in late July.

(The opinions expressed here are those of the author, Clyde Russell, a columnist for Reuters.)

(Editing by Lincoln Feast)

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) surrendered some earlier losses to end daytime trade 0.52% lower at 762 yuan ($107) a metric ton.

The benchmark November iron ore on the Singapore Exchange was 0.98% lower at $100.8 a ton, as of 0722 GMT.

It fell below the key psychological level of $100 a ton to hit an intraday low at $99.8 earlier in the session.

Transaction volumes of construction steel products slipped nearly 8% from the day before to 122,500 tons on Monday, data from consultancy Mysteel showed.

Steel benchmarks on the Shanghai Futures Exchange fell. Rebar shed 0.15%, hot-rolled coil lost 0.82%, wire rod slid 3.04% and stainless steel fell 1.37%.

“After macro sentiment temporarily cooled, speculative demand has decreased significantly while the recovery of rigid demand is limited,” analysts at First Futures said in a note.

“Rebar is likely to build up inventories in November when demand will be weighed with weather getting colder (in the northern regions).”

Beijing has unveiled a raft of stimulus measures since late September to spur the economy and arrest price and sales slump in its property market.

That had lifted sentiment in the commodities markets, pushing iron ore and steel prices higher by 12% and 6%, respectively.

Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.22% and 0.75%, respectively.

Despite broad loss in the ferrous market, some analysts believe prices will move within a relatively narrow range as the market awaits further signals from an important meeting which will possibly be held later this month.

($1 = 7.1214 Chinese yuan)

(By Amy Lv and Mei Mei Chu; Editing by Rashmi Aich and Mrigank Dhaniwala)

The forecasts from Worldsteel show diverging prospects between China — for two decades the major driver of global demand growth — and steel hot spots in the rest of the world, from South Asia to the Middle East and Latin America.

“China’s at the structural peak in terms of steel demand,” Simon Trott, chief executive for iron ore at Rio Tinto Group, the world’s largest supplier of the steelmaking ingredient, said at an address in Melbourne on Friday. “The world will need more steel in the next 20 years than it’s used in the last 30, despite the sort of growth we’ve seen in China.”

Worldsteel sees Chinese consumption racking up a fourth year of declines in 2024 to 869 million tons, while demand in the rest of the world rises 1.2% to reach 882 million tons. China’s share will shrink further in 2025, according to the association.

The figures show how the end of China’s decades-long infrastructure and property boom is reshaping the nation’s steel consumption. But they also suggest another reason why China’s exports have surged so dramatically this year to their highest since 2016: There’s rising demand elsewhere.

India’s market will grow by 8% this year — after rising 14% in 2023 — to 143 million tons, while other emerging and developing economies will see growth of around 7% for a second year running, according to Worldsteel.

The rest of the world last surpassed China’s share of demand in 2018. Worldsteel acknowledged risks to its forecasts due to Beijing’s recent barrage of stimulus measures to support growth, citing a “growing possibility of more substantial government intervention and support for the real economy, which could bolster Chinese steel demand in 2025.”

Read More: China steel demand plateaus at a decent level, Vale boss says

A gauge of strength of the greenback was up about 0.4% and touched the highest since early August. That’s made commodities including base metals less appealing for investors holding other currencies.

Copper and zinc advanced earlier after reductions in two key rates at Chinese banks. The cuts were larger than economists had expected, and they followed the central bank cutting its key policy rate in September. China’s top leadership had called for lower interest rates and stronger measures to aid the ailing property market, a key source of demand for metals like steel, copper and zinc.

Industrial commodities have had a volatile few weeks as investors reacted to a flurry of Chinese government announcements on steps to aid the economy and help it reach the 5% growth target for this year.

Copper fell 0.8% to $9,552 a metric ton by5:08 p.m. local time on the London Metal Exchange, while zinc slipped 0.7% and aluminum was down 0.6%.

Read More: China to extend record aluminum output amid ample power

The trial, expected to last up to 12 weeks, will determine whether BHP is legally responsible for the collapse of the Fundão tailings dam in Minas Gerais, Brazil. The structure failure caused a massive flood that claimed 19 lives, destroyed villages and severely polluted water sources for local communities. The dam was owned by Samarco, a joint venture between BHP and Brazilian mining giant Vale (NYSE: VALE).

The case has been winding its way through the English judicial system for six years, with various judges holding conflicting opinions on whether the case can proceed. In 2022, appeal judges cleared the path for a full trial to take place.

The plaintiffs in the case include more than 600,000 Brazilian citizens, 46 municipalities and 2,000 businesses, all challenging BHP’s role in the disaster. Lawyers representing the victims argued on Monday that BHP has been attempting to evade its responsibility.

The world’s largest mining company is disputing liability, arguing that the London lawsuit duplicates legal proceedings and reparation programs in Brazil, and should be dismissed.

It also claims that nearly $8 billion has already been paid to those affected through the Renova Foundation, with around $1.7 billion going to claimants in the English case.

BHP’s lawyers stated in court that no law or contract imposes a duty of safety on the parent company of a non-controlling shareholder or the other parent company in the same group. They also argued the miner did not breach any safety duty, nor did its actions cause the collapse.

BHP further described parts of the lawsuit as “implausible or exaggerated.”

Settlement in Brazil

This trial comes shortly after BHP and Vale announced they were in talks with Brazilian authorities regarding a potential settlement of $31.7 billion to compensate for the damage caused to people, communities, and the environment.

Pogust Goodhead, the law firm representing the plaintiffs in London, said that the settlement talks in Brazil will not affect the UK case. 

“The timing of these negotiations only highlights how the companies responsible for Brazil’s largest environmental disaster are doing everything possible to prevent the victims from obtaining justice. It reflects the same shameful conduct they have displayed over the past nine years,” the firm said in a statement.

The multi-week hearing, the largest group litigation in English legal history, will also examine whether Brazilian municipalities can bring legal action, the effect of any agreements made by English claimants with BHP, and whether the claims were filed too late.

BHP and Vale agreed in July to equally share the cost of any damages related to proceedings in the UK.

Mineral Resources Ltd. has begun an investigation into undeclared payments made to companies owned by its tycoon founder, Chris Ellison, sending its shares down as much as 14%.

Ellison, who is managing director of Mineral Resources and still a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated, and which sold mining equipment and parts. He did not declare the income from the supply contracts.

“Regrettably, revenue generated by the overseas entities that we were beneficiaries of was not disclosed to the Australian Taxation Office at that time,” Ellison said in a statement on Monday. “This was a poor decision and a serious lapse of judgment.”

According to a report in the Australian Financial Review over the weekend, Ellison struck a deal with the Australian Taxation Office to pay up the outstanding amount. In exchange, authorities did not disclose the figure owed and he will avoid a police or regulatory investigation.

The Australian Taxation Office declined to immediately comment.

Mineral Resources said it retained confidence in Ellison, and would update the market once it had completed internal inquiries.

“Ellison self-reported to the Australian Taxation Office, repaid amounts owed and disclosed these matters to the board,” it said in a statement. “While this does not diminish what happened, Mr. Ellison profoundly regrets his errors of judgment.”

At 2:32 p.m. in Sydney, the stock was trading down 12% to A$40.38, giving the company a market value of about A$8 billion ($5.4 billion).

”While we understand that these concerns raise questions over corporate governance, we think the share price move today is overdone,” Kaan Peker, an analyst at RBC Capital Markets, said in a note, adding the key detail was that no sales had taken place after the company’s listing.

“The added scrutiny and rigor, the current concerns placed on corporate governance, ultimately, should be positive for the organization.”

Earlier this year, Ellison — a larger-than-life figure even by the standards of Australian business — made headlines after stating he wanted to prevent employees at the company’s office from leaving the building to buy coffee.

(By Paul-Alain Hunt)

Vale had already said a deal was expected to be reached in October, but no specific date had been set. Brazilian newspaper O Globo reported the date earlier on Friday.

The collapse of the dam at a Samarco iron ore mine near the city of Mariana nine years ago unleashed a wave of toxic tailings that killed 19 people, left hundreds homeless, flooded forests and polluted the length of the Doce River.

BHP released a statement late Friday, noting the companies are “continuing to negotiate a full and final settlement” of the framework agreement obligations, the federal public prosecution office civil claim and other claims by the public authorities relating to Samarco’s Fundão dam failure.

The Australian miner also stated that the parties are negotiating a settlement proposal that would provide a total financial value of approximately 170 billion reais ($31.7 billion) on a 100% basis to be delivered to the people, communities and environment impacted by the dam failure.

BHP added the negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms.

Vale on Friday forecast that its third quarter earnings will reflect 5.3 billion reais ($930.90 million) in new liabilities related to the Mariana dam collapse.

(With files from Reuters)

Explorers and developers often overstate the certainty of mineral resource classifications based on inadequate data, Desharnais said at an event in Vancouver on Wednesday. The practice has in some instances led to unexpected analyst downgrades, soaring costs and debt, and the derailment of promising assets.

“That classification debt, unfortunately, needs to get paid,” he told about 430 conference participants from 21 countries at CIM’s first Mineral Resources & Mineral Reserves conference. “The CEO may be walking around with a 3-million-oz. resource estimate, but they haven’t earned that classification with sufficient drilling. When the debt comes due, it’s often through painful reclassifications and revisions.”

Decade of missteps

Several recent projects have demonstrated the high cost of classification debt.

Rubicon Resources’ catastrophic 91% downgrade in resource estimates in 2015 stands as one of the most glaring examples. After it began initial production at the F2 gold deposit on its Phoenix property in Ontario’s Red Lake district, the company found the deposit to be uneconomic, shuttering the operation. It had not completed a feasibility study for the high-grade project.

The size of the downgrade blindsided investors and stakeholders, and the company had to undergo a painful restructuring to survive. Rebranded as Battle North Gold, Evolution Mining (ASX: EVN) bought it and its renamed Bateman project in 2021 for $343 million.

In 2018, Pretium Resources promoted the Brucejack gold project in northwestern British Columbia’s Golden Triangle, now owned by Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM), as a high-grade gold deposit. Yet, the asset disappointed when gold production grades fell far below expectations.

The nuggety nature of the gold, with Brucejack’s steeply dipping quartz veins and erratic grade distribution, made it difficult to consistently meet production targets, forcing the company to push tonnage through the mill to compensate for lower-than-expected grades.

Aurora (2018), Rainy River (2019), and Gold Bar (2020) show how resource overestimation hurt Guyana Goldfields, New Gold (TSX: NGD; NYSE: NGD) and McEwen Mining (TSX: MUX; NYSE: MUX). They had to downgrade estimates mid-operation. This triggered mine plan revisions, soaring costs, production delays, and financial strain.

Grade versus geometric risk

Desharnais identifies two types of risk that contribute to resource misclassification: grade risk and geometric risk.

Grade risk reflects patchiness in ore quality, while geometric risk involves uncertainty about the size and shape of mineralized domains within the deposit.

Conditional simulations help assess grade risk, Desharnais said, but tools to quantify geometric risk are lacking.

Companies often overestimate deposit geometry without tighter drilling, leading to costly misjudgments.

“Sparse drilling gives us a simpler picture than reality,” he explained, adding that only closely spaced drilling can reveal the true complexity of orebodies.

Best practices

Mathieu Doucette, a senior geologist at ArcelorMittal (NYSE: MT), talked about the difficulty of classifying resources at Canada’s largest iron mine, the Mont-Wright iron ore mine in Quebec, producing continuously since 1974. Outdated data can affect current resource estimates. He illustrated how mixing in fresh drill holes helps manage geological risk as part of a dynamic model essential to avoid misclassification.

“The first thing [a QP] will do is akin to lighting a torch,” he said. “But everything on the edges is dark, and you can’t really see it. Drill holes are our ability to try and get some information, but sparse data hides the full picture.”

David Machuca-Mory, a principal consultant at SRK Consulting, said fixed models are risky. Deposits can be more unpredictable than they seem. Adaptive methods help ensure estimates reflect reality, reducing the chance of costly surprises.

“Even with dense drilling, some areas remain highly uncertain,” Machuca-Mory said. “Confidence intervals are large, and relying solely on drill spacing doesn’t always guarantee accurate classification.”

Cognitive biases

Desharnais said that misclassification is not just a technical problem; human psychology plays a significant role.

Anchoring bias makes companies stick with initial estimates despite new data. Authority bias pressures geologists and consultants to confirm favourable results to please management or investors.

“The consulting firm wants the next contract,” Desharnais said. “The CEO has family and friends invested and needs good news. These biases create a system where classification debt builds up across projects, only to be paid through painful revisions later.”

Owning up

Desharnais argued for more conservative resource models and said benchmarking against operating mines would help set realistic expectations. He suggested that technical reports include histograms that show the distance between drill holes and classified resources, he added.

“It forces the QP or CP to look at what they’ve done and ask: Does this make sense?” he said. “Transparent reporting would help prevent overly aggressive classifications, ensuring companies earn their resource classifications with sufficient data.”

Such measures may slow development, but they could also reduce the prevalence of misclassified resources in the industry. Desharnais urged geologists to scrutinize each block of material above the cut-off grade.

“Over-promising today only delays the inevitable correction tomorrow,” he said.

The ministry said in a statement that relief would be granted under specific and exceptional circumstances. The measure is designed to help firms adjust their supply chains to cope with the new tariffs, it said in a statement.

Canada announced the measures in late August, citing China’s intentional, state-directed policy of over-capacity. A 100% surtax on EVs was imposed on Oct. 1 while a 25% surtax on steel and aluminum products comes into effect on Oct. 22.

“To ensure that Canadian industry has sufficient time to adjust supply chains, remission will provide relief … under specific and exceptional circumstances,” the ministry said.

“The federal government will consider the appropriate duration of remission, with intent to provide it on a transitional basis only in most cases,” according to the ministry.

Remission would be considered in the following cases:

• Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
• Where there are contractual requirements, existing prior to Aug. 26, 2024, requiring businesses to purchase Chinese inputs into their products or projects for a specified period of time.
• Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the economy.

Remission will not be granted for goods intended for resale in the same condition to the United States.

(By David Ljunggren; Editing by Mark Porter)

The agreement marks a concrete effort by miner Vale to decarbonize its operations, as well as a win for state-run oil firm Petrobras in its efforts to develop a market for the sustainable fuels it produces.

Petrobras and Vale are two of Latin America’s largest companies by market value.

“The partnership with Vale is yet another achievement for Petrobras in its goal of improving its production capacity and logistics structure to supply greener products to the market,” Petrobras CEO Magda Chambriard said.

The agreement will initially cover the supply of diesel with renewable content for the mining giant’s trucks and locomotives, and might eventually be expanded to marine fuel with 24% of renewable content and natural gas.

Reuters first reported the agreement earlier on Friday, citing sources familiar with the matter.

Petrobras is able to provide marine fuel with up to 24% of renewable content, and diesel with 5%, Chambriard said last week, when she mentioned that a deal with Vale was in the works.

The deal is also a milestone for Vale’s new leadership as the firm, one of the world’s largest iron ore producers, tries to improve its relationship with the Brazilian government, which has pressured it to invest more in the country.

Former finance head Gustavo Pimenta took over as chief executive earlier this month, replacing Eduardo Bartolomeo. Analysts have highlighted that improving ties with the government would be a key goal for the new CEO.

“We are very happy to announce this broad partnership with Petrobras, which brings benefits to both companies and creates value for Brazil,” Pimenta said in a statement.

(By Rodrigo Viga Gaier and Fabio Teixeira; Editing by Gabriel Araujo and Marguerita Choy)

Iron ore futures fell more than 5% to trade below $100 a ton in Singapore, while tin, zinc and nickel paced declines for non-ferrous metals on the London Metal Exchange.

China will expand a program to support the completion of unfinished housing projects to 4 trillion yuan ($562 billion), Housing Minister Ni Hong said at a briefing on Thursday. That nearly doubles the scale of spending as Beijing bids to ease the real estate crisis, but investors had been hoping for more.

“The property policies are focused on resolving the backlog of housing inventory, which doesn’t really help much with steel demand in the short term,” said Zhou Minbo, an analyst with GF Futures Co.

Iron ore had rallied from a two-year low below $90 in late-September to above $110. But prices have faded as a series of government briefings on economic policy fell short of expectations. China’s economy is still under pressure, with its third-quarter growth likely to be at its weakest pace in six quarters, according to a Bloomberg survey.

Investors are placing too much expectation on government announcements of stimulus, said Han Jing, an analyst with SDIC Essence Futures Co. There has been a clear shift in policies, but the scale and the pace will become clear more gradually, he said.

Iron ore is down by more than a quarter this year, and pressure isn’t coming just from weaker Chinese demand. Relatively strong supply has been underscored by quarterly output tallies from the big three miners this week, with Brazil’s Vale SA pushing its production to the highest since 2018.

Iron ore futures were trading down 4% at $100.60 a ton as of 12:36 p.m. London time. Copper was 0.5% lower at $9,514 a ton on the LME, having earlier hit a three-week low of $9,435.50 a ton. Tin fell 2.4%, while nickel and zinc were more than 1% lower.

Read More: World’s top two iron ore miners raise output even as China slows

CSN announced the deal to sell up to 11% of CSN Mineracao to Itochu early on Wednesday, but did not immediately provide financial details. The price was revealed later in a fresh filing at the request of Brazil’s securities commission.

According to the steelmaker, the price agreed with Itochu for the deal was 7.50 reais per share, above CSN Mineracao’s Tuesday’s closing of 5.95 reais per share.

CSN added that “the form of payment, any adjustments and other conditions of the deal are still being negotiated and have not been defined by the parties.”

(By Alberto Alerigi Jr.; Editing by Mark Potter)

The world’s largest listed miner over the last year has ramped up the South Flank mine to full production capacity and streamlined its port operations for its Western Australian iron ore business.

The ramp-up comes at a time when mining rivals including Vale and Rio Tinto are moving to expand their supplies. Vale plans to further lift its production, while Rio’s Simandou mine will begin production next year.

BHP, which is diversifying into potash, said the $10.5 billion Jansen Stage 1 project was 58% complete.

The miner’s upbeat iron ore production update comes as China, the commodity’s largest purchaser, has been announcing a slew of stimulus measures to support its downbeat economic recovery.

BHP said iron ore output from Western Australia on a 100% basis was 71.6 million metric tons in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt, according to a Macquarie note.

“Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilizing the property market and bolstering business confidence,” said CEO Mike Henry.

BHP, which has been aiming to expand its copper operations, recorded a 4% rise in the metal’s output for the quarter, reflecting improved performance at its Escondida mine in Chile.

Analysts at Citi said Escondida output rose on higher grades and throughput at the Chilean mine.

Earlier this year, BHP made a $49 billion bid for British copper major Anglo American, which did not materialize. But BHP joined hands with Lundin Mining to take over Filo Corp, gaining access to more copper assets.

Copper, used widely across the globe, is an ideal conductor of electricity and easily malleable, qualities that have made it widely popular for use in wiring, engines, construction equipment, electronics and other devices.

BHP’s shares were up 0.3% at A$43.67 in early trade.

(By Rishav Chatterjee and Echha Jain; Editing by Sriraj Kalluvila and Rashmi Aich)

Rio’s third-quarter output edged up about 1% from a year earlier, while Brazil’s Vale beat estimates to churn out its highest volume since late-2018, ahead of a dam-collapse disaster that triggered years-long disruptions.

Iron ore demand in top buyer China remains at risk due to a slump in its metals-intensive property sector, although that’s been partially offset by some corners of the manufacturing industry as well as surging exports of steel. Iron ore futures are down nearly a quarter this year as supply outpaces demand.

“China’s economic recovery has been uneven, prompting more government support to sustain growth,” Rio said in its production report. “As the economy transitions from the property sector to new growth areas, future commodity demand will turn more reliant on advanced manufacturing, including electric vehicles, and power infrastructure.”

The world’s top iron ore miners continue to beef up supplies, with their large-scale operations safeguarded by per-ton costs that remain far below current spot levels. BHP Group Ltd., the third-biggest, reports its quarterly output on Thursday this week.

Vale’s production of 91 million tons for the quarter surpassed output from Rio Tinto’s mines in the Pilbara region at 84.1 million tons. Rio held its full-year guidance for iron ore at 323 million to 338 million tons, while Vale said it expects to produce between 323 million and 330 million tons.

“Cost pressures in the Pilbara continue to be a small headwind” for Rio, Jefferies analysts including Christopher LaFemina said in a note. Iron ore “should be a massive, underappreciated cash cow business for Vale,” he said in a separate note.

Rio’s shares were trading 1.8% lower in Sydney at 1:44 p.m. local time.

Support measures

The commodities world is closely watching what China does next to support its slowing economy, with all eyes on a briefing by the housing minister on Thursday which should give more detail on plans to tackle the housing slump. Steel demand in China is expected to fall 3% this year, according to the World Steel Association.

Meanwhile, Rio’s copper output in the quarter slipped 1% from the year before, while bauxite output rose 8% and aluminum was down 2%.

On copper, Rio said that “pent-up demand” in China returned in the third quarter, as fabricators held back from buying amid high prices in the prior period. “Demand in the rest of world was mixed, with strong performance in developed Asia offset by weakness in Europe,” it said.

More coming

Rio is ramping up production across its traditional iron ore and copper portfolio. Its largest project is the Simandou iron ore mine in Guinea, which will deliver first ore next year and ramp up to 60 million tons per annum soon after.

The London-based miner also said its $2 billion Western Range iron ore project in the Pilbara was 80% complete. Rio is undertaking studies of five other projects that would add another 40 million tons of supply.

Iron ore still accounts for around two-thirds of Rio’s revenue, but the group is diversifying into other commodities including lithium. Earlier this month, it announced a $6.7 billion takeover of Arcadium Lithium Ltd., marking its return to deal-making after more than a decade.

(By Paul-Alain Hunt)

“It’s a sensitive legislation for the infrastructure sector including transport and power — not just mining,” said Ana Paula Bittencourt, a director within Brazil’s mining and energy ministry. “So revisiting the caves decree is a government mission.”

Brazil’s Environment Ministry is leading the technical discussions, Bittencourt said last week in an interview on the sidelines of a mining conference. Talks also involve Brazil’s Chief of Staff, who’s in charge of the country’s growth acceleration program, and Mines and Energy ministry.

While there is a sense of urgency in revisiting the rules, she said, President Luiz Inacio Lula da Silva’s government is seeking to strike the balance between industry and protecting the environment.

Vale sees a potential to unlock 1.6 billion tons of iron ore reserves — including those in the Amazon rainforest — if the government tweaks rules around mining in caves, according to a September presentation.

The strict regulations that protect cavernous zones limit Vale’s potential to expand in its richest deposits in Brazil. Reclassifying some caves could give the iron ore miner access to more reserves, according to the Rio de Janeiro-based company.

(By Mariana Durao)

Read More: Vale posts highest quarterly iron ore output since 2018

The company said in a securities filing that its board of directors has approved Itochu’s non-binding offer, but that the conclusion of a potential transaction still depends on additional corporate and antitrust green light.

(By Alberto Alerigi Jr.; Editing by Gabriel Araujo)