Category Archives: Commodities

Is deep-sea mining a cure for the climate crisis or a curse?

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Trillions of metallic nodules on the sea floor could help stop global heating, but mining them may damage ocean ecology

In a display cabinet in the recently opened Our Broken Planet exhibition in London’s Natural History Museum, curators have placed a small nugget of dark material covered with faint indentations. The blackened lump could easily be mistaken for coal. Its true nature is much more intriguing, however.

The nugget is a polymetallic nodule and oceanographers have discovered trillions of them litter Earth’s ocean floors. Each is rich in manganese, nickel, cobalt and copper, some of the most important ingredients for making the electric cars, wind turbines and solar panels that we need to replace the carbon-emitting lorries, power plants and factories now wrecking our climate.

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North Sea oil was battered by Covid, but now faces much deadlier waves

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Since the pandemic hit, the world’s altered attitude to fossil fuels is throwing doubt over the industry’s future

The UK’s North Sea oil industry may have survived one of the darkest market downturns in history during the Covid-19 pandemic, but the deepest gloom lies over the future of the fossil-fuel industry.

Companies are braced for this week’s annual economic report from industry body Oil and Gas UK (OGUK). It is expected to lay bare the full toll of the pandemic on the ageing oil and gas basin last year.

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‘A perfect storm’: UK beet growers fear Brexit threatens their future

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They produce half the country’s sugar needs, but expect new trade deals to make their tough situation worse

In a field in Norfolk, the sight of lush green leaves sprouting from the soil are giving farmer Ed Lankfer cause for optimism. “I think this is one of the best crops we have ever grown,” he says, surveying one of his fields of sugar beet.

The signs are promising so far for this year’s harvest – known in the trade as a campaign – which takes place later than for other crops, during the autumn and winter. It would mark quite the turnaround from 2020’s terrible harvest, when bad weather and pests caused yields of the white sugar-yielding root to plummet by as much as 60%, leaving Lankfer with a £12,000 loss.

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Recipe for inflation: how Brexit and Covid made tinned tomatoes a lot dearer

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Combine the pandemic with rising raw material costs, stir in a labour shortage, a twist of Brexit, add a pinch of poor weather and voila …

Tinned tomatoes are a taken-for-granted store cupboard staple, relied upon by Britons to whip up home cooked favourites such as spaghetti bolognese. But the price could soon make you take notice, amid warnings of higher shopping bills, set against a backdrop of soaring global food prices.

From the packaging to the transportation and the energy used in manufacturing, nearly all aspects of the production of this popular ingredient now cost more. The crushed tomatoes alone are 30% dearer than a year ago, at €0.48 per kilo. The same pressures are driving the prices of many foods higher, meaning Britons will probably face bigger bills for groceries or meals out this autumn.

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World’s third largest diamond discovered in Botswana

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Mining company Debswana shows the 1,098-carat stone to the country’s president, Mokgweetsi Masisi

The diamond firm Debswana has announced the discovery in Botswana of a 1,098-carat stone that it described as the third largest of its kind in the world.

The company showed the stone, which was found on 1 June, to the country’s president, Mokgweetsi Masisi, in the capital Gaborone.

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G7 nations committing billions more to fossil fuel than green energy

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In spite of green rhetoric, money has piled into aviation and car industries since start of pandemic, report finds

The nations that make up the G7 have pumped billions of dollars more into fossil fuels than they have into clean energy since the Covid-19 pandemic, despite their promises of a green recovery.

As the UK prepares to host the G7 summit, new analysis reveals that the countries attending committed $189bn to support oil, coal and gas between January 2020 and March 2021. In comparison, the same countries – the UK, US, Canada, Italy, France, Germany and Japan – spent $147bn on clean forms of energy.

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Gaza damage and Glasgow raids: human rights this fortnight in pictures

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A roundup of the coverage on struggles for human rights and freedoms, from Myanmar to Peru

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Price of gold: DRC’s rich soil bears few riches for its miners – photo essay

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As the value of gold reached new heights last year, those mining it continued to face crippling deprivation and dangerous conditions

  • Produced as part of Congo In Conversation, with the support of the Carmignac photojournalism award. Text and photographs by Moses Sawasawa, a photographer based in Goma and co-founder of Collectif Goma Oeil

The muddy slopes surrounding the eastern Congolese gold-mining town of Kamituga hold vast wealth and crippling deprivation.

In South Kivu province near the borders of Rwanda and Burundi, Kamituga has mineral resources estimated to be worth $24tn (£17tn) in untapped deposits. Yet the Democratic Republic of the Congo (DRC) has one of the lowest levels of GDP per capita in the world and people work in dangerous conditions with little hope of scratching out anything more than a meagre existence from tough and dangerous work.

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Goldman Sachs executive quits after making millions from Dogecoin

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The crypto asset is down more than 30% this week but is still up by more than 1,000% from the start of 2021

A senior manager at Goldman Sachs in London has quit the US investment bank after making millions from investing in Dogecoin, the joke crypto asset which has risen by more than 1,000% in value this year.

City sources said Aziz McMahon, a managing director and head of emerging market sales, had resigned from the bank after making money from investing in the digital currency based on the Doge internet meme.

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Growing pains: Zimbabwe’s female tobacco farmers struggle to compete

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At the mercy of international markets and denied access to mainstream finance, the enterprising growers face a precarious existence

Moreen Tanhara waits patiently for officials to inspect her tobacco. The 49-year-old has travelled nearly 100 miles (150km) overnight in an old lorry to reach Tobacco Sales Floor, an auction house in Harare. Tanhara sits quietly on one of the fragrant sacks she has brought from Guruve, a farming area north of Zimbabwe’s capital, while on the auction floor workers prepare tobacco leaves for the first sales of the season.

Related: Zimbabwe urged to take action against child labour on tobacco farms

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‘We cannot drink oil’: campaigners condemn east African pipeline

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Activists say the ‘heart of Africa’ line shipping crude from Uganda to Tanzania is unnecessary and poses a huge environmental risk

Activists have accused French and Chinese oil firms of ignoring huge environmental risks after the signing of accords on the controversial construction of a £2.5bn oil pipeline.

Uganda, Tanzania and the oil companies Total and CNOOC signed three key agreements on Sunday that pave the way for construction to start on the planned east African crude oil pipeline (EACOP). But on Tuesday a letter signed by 38 civil society organisations across both east African countries said the parties had failed to address environmental concerns over the pipeline and had steamrollered over court and parliamentary processes.

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How the Suez canal blockage can seriously dent world trade

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Analysis: 12% of global shipping uses the canal with any delays disrupting supply chains, fuelling shortages and hiking prices

World trade’s pre-eminent shortcut – the Suez Canal – is facing “massive” disruption which could cause cargo delays around the globe, shipping experts warned on Friday.

The narrow, 120-mile passage of water linking the Red Sea and the Mediterranean allows ships of colossal proportions to navigate a relatively direct route from Asia to Europe, rather than taking a 3,500-mile diversion around Africa.

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Diversify or risk unrest, oil producers warned in report

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As world shifts to green energy, Iraq and Nigeria among those vulnerable to ‘wave of instability’

Oil-dependent countries that are not preparing to adapt to the global shift away from fossil fuels risk their own stability, warns a new report.

Algeria, Iraq and Nigeria are the most vulnerable to “a slow-motion wave of political instability”, according to the risk analysts Verisk Maplecroft.

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Cook Islands-flagged tankers scrubbed for alleged sanctions-busting

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Two tankers flying the flag of the remote Pacific archipelago are alleged to have been involved in subterfuge shipping of Iranian oil

Two tankers flying the flag of the Cook Islands have been scrubbed from the islands’ shipping registry after allegations the vessels were sanctions-busting, transporting Iranian crude oil while concealing their movements.

US sanctions on Iran’s oil and gas sector have, somewhat improbably, caught up the tiny Cooks archipelago on the other side of the world.

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Global stock markets drop as inflation fears prompt sell-off

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UK FTSE was down 2.5%, its biggest one-day fall in percentage terms since the end of October

Global stock markets ended February deep in the red, as fears of higher inflation prompted a sell-off in government bonds and spread anxiety across financial markets.

The UK’s FTSE 100 index fell 168 points to 6,483, a 2.5% drop – the biggest one-day fall in percentage terms since the end of October.

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Oil firms should disclose carbon output, says BlackRock

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World’s biggest investor wants polluting industries to set targets to cut emissions and reach net zero

BlackRock, the world’s biggest investor, has said that oil companies and other polluting industries should disclose their carbon emissions and set targets to cut them, in the latest sign of the rapid reassessment of climate risks by asset managers.

All companies in which BlackRock invests will be expected to disclose direct emissions from operations and from energy they buy, known respectively as scope 1 and scope 2 emissions, the investment firm said in a letter outlining its plans.

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Nigerians can bring claims against Shell in UK, supreme court rules

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Ogale and Bille villagers say Shell oil operations have caused severe pollution including to their drinking water

Two Nigerian communities can bring their legal claims for a cleanup and for compensation against the oil company Shell and its Nigerian subsidiary in an English court, supreme court judges have said.

In what lawyers said was a “watershed moment” for the accountability of multinational companies, on Friday the court overturned a decision by the court of appeal, and ruled that the cases against Shell could proceed.

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GameStop shares plunge as traders dump stock

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Reddit-inspired surge in stocks such as struggling video games store and AMC dive as hedge funds close positions

Shares in GameStop plunged by 65% in early trading on Wall Street as the trading mania sparked by small investors, that sent its stock surging and cost hedge funds billions of dollars, lost momentum.

The struggling Texas-based video game store chain has been the focal point of a battle by small traders, using forums such as Reddit, to punish Wall Street hedge funds that have bet on certain stocks falling in value. GameStop shares hit a high of $482 last Thursday but slumped to $80 shortly after the market opened. They recovered to $117 by mid-session, but closed down 60% at $90.

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Silver price hits eight-year high – business live

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Rolling coverage of the latest economic and financial news

Neil Wilson of Markets.com suggests that large investors may also be driving the silver price rally, rather than it simply being caused by retail traders.

He also warns that such speculation is risky, and usually ends badly for some of those who get caught up:

The fact that such a large and liquid market as silver can be targeted by retail investors says much about the shift we are witnessing, though despite appearances this morning it’s going to a lot harder to squeeze silver shorts as the market is so much deeper and more liquid.

We should also note that some bigger smart money may have be front-running this trade to piggyback the rally and further fuelling the move up. (George Soros: “When I see a bubble forming, I rush in to buy, adding fuel to the fire.”)

Allianz’s Mohamed El-Erian has tweeted that GameStop and silver are not the same kind of short squeeze trade (as some WallStreetBets posts have also been pointing out).

El-Erian also cautions that the silver squeeze could undermine the squeeze on hedge funds who shorted GameStop’s shares, as the GME trade depends on keeping retail investors on board (rather than selling to the hedge funds).

.#GameStop and #silver are not the same for those pursuing the short squeeze trade
The silver market is much larger;
Existing shorts are smaller;
Some of the #HedgeFunds that are short #GME are said to be long silver
Bottom line: A dissimilar trade that eats away at #GME gains https://t.co/TMfpkr7QDE

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China tariffs offset by rising Australian iron ore prices due to ‘fear tax’

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Boosted iron ore prices due to anxious markets are likely to help federal budget’s bottom line, Deloitte says

Australia’s losses from trade tensions with China are being offset by rising iron ore prices, according to new analysis, which also predicts the Morrison government will announce a smaller budget deficit than originally forecast.

Deloitte Access Economics said Chinese government moves against wine, beef, barley, lobsters and thermal coal have cost Australia money “but we’ve more than made that up in overall terms thanks to iron ore – and the taxman will be a considerable beneficiary of that”.

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