Iron Ore Mines: Australian iron ore mines see investment potential from India

An underdeveloped Australian iron ore miner sees investment opportunities from India and deals to supply high-grade magnetite resources suitable for making green steel as part of the world’s second-largest steel producer’s commitment to climate change, a senior executive at the company said on Tuesday.

The Lake Giles Iron Project in Western Australia, which has 66-69 per cent Fe Fine grade iron ore resources, is looking for investment partnerships as well as supply agreements for its USD 500 million mine development in the process.

The main focus this year has been on formalizing the strategic partnership for the development and infrastructure needed to commercialize the Lake Giles Iron Project, says MacArthur Minerals’ International Sales and Marketing Manager at Singapore International Ferrous Week. .

“The company is in active negotiations with a number of global corporations that have the potential to add capital and technological capabilities to the project,” Moon said, emphasizing the potential for participation in the Indian steel sector.

Moon expects 10 per cent to 20 per cent Indian investment in the 500 500 million Lake Giles development, which is expected to produce three to four million tonnes / year of high-grade ore, of which one to two million tonnes could be supplied. India. Green steel is made using hydrogen instead of coal, and is expected to go a long way in tackling climate change.

Lake Giles is expected to start production of iron ore from 2026.

“We plan to use a lot of renewable energy in our project while India is expected to use hydrogen among other sources of energy to make green steel,” Moon told PTI. Meanwhile, the Razorback project in South Australia, including the provision of 68.5 per cent Fe Fine Magnetite material, is being evaluated by investors for its USD 500 million development. Razorback is at various stages of research, including feasibility and final investment decisions, the production of which is expected to begin in 2025.

“We are in the early stages of financing our project and are looking for strategic partners in Australia’s high-grade magnetite resources,” said Stephen Weir, CEO of Magnetite Mines Limited, which owns the project with two to 4.2 billion tons of assets. Very large magnetite iron ore deposit.

The process of direct reduction of iron (DRI) and the use of energy such as hydrogen could turn magnetite grade ore into green steel, according to Weir, who outlined India’s long-term plans for green steel production.

Traders see the potential for Indian investment in two mega-mines, each at US 50 50-100 million, or 10 per cent to 20 per cent, but with the supply of magnetite ore contracts at competitive prices. India’s highest ore grade is 64 per cent Fe fine, and imports of 66-69 per cent Fe will help create even higher grade eco-friendly steel, traders said at the opening of the conference on Tuesday.

While owners of iron ore assets are not giving much clear indication of the uncertainty created by the Ukraine-Russia war, traders say it would be reasonable to attract investors from North Asia and India, where mills are being upgraded to produce environmentally-friendly products.

Logically, China and India will be big buyers of high-grade iron ore in the long run even though everyone is watching the impact of the Ukraine-Russia war on global prices, traders say.

Clinical trials demonstrate the safety of vaccines against 3 encephalitis viruses

A vaccine induced a neutral antibody response in adult volunteers and based on a Phase 1 clinical result the Eastern Equin encephalitis virus (EEEV), the Western Equin encephalitis virus (WEEV) and . Tests were conducted on 30 candidates.

Infected mosquito bites spread EEEV, WEEV and VEEV to humans. Horses are also susceptible to infection, but horses cannot transmit the virus directly to humans. Infections in humans are rare but can cause flu-like symptoms. In some cases, it can even lead to serious neurological damage or death.
The results of a clinical trial have been published in The Lancet Infectious Diseases.

The US National Institutes of Health said in a media release that a virus-like particle (VLP) vaccine candidate was designed as part of a study using proteins from the outer shell of the virus. VLPs cannot cause infection because they do not contain the genetic material needed to replicate the virus inside the cell.

Encephalitis is an infection of the active tissues of the brain caused by an infection that causes swelling of the brain. It can cause headaches, mental confusion, convulsions, stiff neck and sensitivity to light.

It hits 10 to 15 people per 100,000 people and can affect anyone. Encephalitis is a condition in which the body’s own immune response attacks the brain. The most common causes of viral encephalitis are herpes simplex viruses type 1 and 2, varicella zoster virus and enterovirus, which cause gastrointestinal illness.
Encephalitis can also be caused by ticks and other viruses carried by other insects or animals such as West Nile virus, Japanese encephalitis virus, La Cross virus, St. Louis virus, Equine virus, Powasan virus, Zika and Chikungunya. Other infectious microorganisms such as bacteria, fungi and parasites can also cause encephalitis.

Putin has set the Russians on a wild hunt for dollars on the black market

(Bloomberg) – As the ruble’s official exchange rate shares its value on the street, the dollar is becoming harder to find.

Most read from Bloomberg

For Boris, a Moscow-based doctor, the search became so desperate that he thought of a high-tech, and seemingly impossible, black-market plan that a friend was pushing.

After interacting with a bot through the Messenger app, his acquaintance electronically transferred rubles to get a barcode that he scanned to access a secure storage box at the Moscow Mall.

The 1,000 euros ($ 1,040) he ordered was sitting inside.

“Banks either have no foreign exchange, or, if they do, they sell it at a bad rate,” said Boris, 35, who requested that his title not be used because of the sensitivity of the issue. Still, “you have to really trust the system to do it. I won’t risk it,” he said.

Vladimir Putin’s war against Ukraine has put the economy on track for the sharpest contraction in decades. But since the onset of the attack, the Russian currency has risen nearly 25% against the US dollar, making it the undisputed best performer in the world.

While this has allowed Putin to boast that Western sanctions “blitzkrieg” have failed, ordinary Russians cannot take advantage of the currency’s strength. Oil flows and capital controls have distorted government rates, and the ruble exchange point and the black market are about 20% weaker – reminiscent of many Russians of its Soviet predecessors.

“It’s like trying to show that the Soviet Union is beating America. In 1982, someone shook a copy of the Izvestia newspaper and said, ‘Look, the dollar is worth only 64 kopecks!'” Said Moscow-based professor Sergei Khestanov. Adviser to the CEO of Finance and Banking and Otcriti Brokerage. “I would agree – if anyone could actually buy a dollar for 64 kopecks.”

Strict rules

Under recent central bank rules, lenders can only sell dollars and euros received from April 9. Individuals can withdraw hard currency, but only from accounts opened before March 9 and not equivalent to 10,000 before September. There is also a cash limit of $ 10,000 when traveling abroad.

In the aftermath of the illicit money changers operating in the late Soviet era, middlemen working in collusion with bank employees lured buyers with official rates posted on currency exchanges.

As in the past, according to Boris, there is always the danger of leaving with counterfeit notes He eventually chose the mediator and paid 15% more than the official rate to buy $ 2,000 for his ex-wife and children. They needed cash on vacation in Turkey as the ban has stopped Russian-issued credit cards from working abroad.

On Monday, banks were selling an average of 20% more dollars than the ruble quoted on the Moscow exchange, according to a survey of about 70 Moscow banks and exchange points on the financial websites RBC and Banki.ru. The black-market rate, which was shown on the currency exchange channel on the Messenger app in Moscow on Tuesday, ranged from 73 rubles to 76 rubles, while in Moscow it changed slightly to 63.35 dollars per ruble until 2:22 pm.

In a country like Zimbabwe it may be a long way from the huge gap between official and black market rates, but Russia’s disparity reflects the reality of an economy that has never been isolated in post-Soviet history.

Sanctions on Russia’s isolation from the global banking system and emergency capital controls at home are halting imports and making large-scale capital flight impossible. At the same time, international sanctions have been carefully crafted to allow countries to continue purchasing Russian oil, gas and other goods, with billions of dollars flowing into the Kremlin’s coffers each week.

Read more: Russia jumps to current account surplus record despite sanctions

Defending the United States’ one-sided approach, Secretary of State Anthony Blinken dismissed the Rubel rally in early April as “unsustainable.” The currency has risen 30% since Blinken spoke, but Tatha Ghose at Commerzbank AG agrees.

“There are no more forward elements in the exchange rate because sanctions and capital controls hinder the flow of meaningful capital,” Ghosh wrote in a report. The ruble is replaced by “the current daily demand and supply for the business of items that can still be exported and imported.”

Even the Bank of Russia acknowledged in its latest financial report that sanctions have largely turned the rate into a blunt expression of the country’s trade balance.

With European governments imposing sanctions on oil and gas in late 2022, Ghosh predicts that the ruble will depreciate by 10% by the end of the year and by another 20% by the end of 2023.

To be sure, some ruble weakness will be welcomed by the Ministry of Finance.

The dollar is depreciating against Russia’s main crude oil, the Urals, and the rise in the currency means the government is collecting less rubles per barrel, hampering its budget revenue targets.

Christopher Granville and Medina Krustaleva of TS Lombard wrote in a note that Russia would have “virtually no cushions for the economic recession and the financial pressures of Ukraine’s protracted war.”

On her way to the dollar in Moscow, Sofia, 22, a student, was able to buy তৃতীয় 550 at an official exchange point on her third attempt.

She is receiving cash to carry to her boyfriend, whom she sent to Prague amid constant speculation that Putin will announce a national call-up as soon as the war begins. His advice: To avoid frustration, travel early and contact the bank in advance.

“The exchange rate was bad, much higher than the official rate,” he said. “But at least they are not taking 30% commission like in February.”

(Paragraph 12 adds current ruble trading)

Most read from Bloomberg Business Week

© 2022 Bloomberg LP

Palm oil: Why Indonesia’s palm oil export ban has not cooled cooking oil prices

Indonesia, the world’s largest exporter of palm oil, has cut off shipments of edible oil since April 28 to flood the domestic market with a supply to control rising cooking oil prices.

Despite these tough policies that have wreaked havoc on the edible oil market and lost millions of dollars in revenue, the price of cooking oil, which is a major factor for Indonesian households, has hit the ratings of President Joko Widodo’s approval.

How are the Indonesian authorities trying to control the price of cooking oil?

Since November, authorities have unveiled a misleading set of policy measures, including subsidies, export permits and palm oil tariffs, as well as export bans. Still, it is made from palm oil and fails to meet the cost of household necessities used by most people in the world’s fourth most populous country, in line with an official goal.

What is the price of cooking oil?

Indonesian officials have promised to lift the export ban when bulk cooking oil prices return to Rs 14,000 ($ 0.9560) per liter across the country. The price of cooking oil has come down to its peak, but Commerce Ministry data showed as of Friday that the average price of cooking oil was Rs 17,300 per liter, down from an average of Rs 18,000 in April but above Rs 13,300 in July.

Indonesian minister blames “palm oil mafia”

Commerce Minister Muhammad Lutfi on March 18 blamed a “palm oil mafia” for exploiting the situation. Sending a chill through one of Indonesia’s major export sectors, the attorney general launched an investigation into corruption in palm oil export permits, arresting a senior Commerce Ministry official and three palm oil executives.

What are the barriers to the distribution of cooking oil?

Government efforts to reduce prices include the state food procurement agency, Boulogne, for the distribution of more cooking oil. But last week Bulugo said a regulatory framework had not yet been created, meaning plans to distribute subsidized cooking oil at Rs 14,000 had not yet begun.

Bulug said regulations were needed to avoid any mistakes in implementation and to ensure clarity on how costs would be covered.

Red tape has been cited as another reason for undermining principles

Gulat Manurang, chairman of the small farmers group APKASINDO, blamed a complex government bureaucracy for trying to stop subsidizing palm oil.

The government is setting aside a subsidy to pay producers for any gap between the cost of production and the selling price.

But for palm refiners to be paid by the Indonesian palm oil fund company BPDPKS, distributors and retailers must provide a highly detailed list, subject to a state audit and may be punishable by imprisonment for any wrongdoing.

“Factories have cooking oil, but they are not selling it to consumers,” said Gulat, who believes the system should flow.

How do the authorities say they are trying to improve distribution?

On Tuesday, the Commerce Ministry announced a program aimed at ensuring that cheap cooking oil reaches thousands of low-income households. The statement said retailers would be able to sell bulk cooking oil at Rs 14,000 per liter to their identity card issuers.

Asked about distribution issues, industry ministry official Marijantiz Punguan Pintaria said there were many components but logistical and transportation constraints were the main obstacles.

What will be the last game?

Jokoi, popularly known as the president, said the need for affordable food undermined revenue concerns and that export bans would be lifted as soon as domestic demand was met. Palm oil traders have speculated that the ban could be lifted at least partially soon, especially with the filling of storage tanks.

Politics can play an important role in time. A survey by Polstar Indicator Political Indonesia this week found that the presidential approval rating is at a six-year low, mainly due to rising cooking oil costs and the impact of inflation.