Category Archives: Energy & Mining

Oil Prices Fall as Federal Reserve Indicate a Hike in Short-Term Interest Rates

oil prices 1

With a stronger US dollar and a fading possibility of a freeze on production, oil prices fell sharply. Crude oil for October delivery on the New York Mercantile Exchange slumped 76 cents, or 1.6%, to trade at $46.88 a barrel. Meanwhile, on the ICE Futures Exchange in London, Brent oil for November delivery declined 79 cents, or 1.58%, to trade at $49.36 a barrel. Oil prices fell after Federal Reserve signalled a growing conviction that the central bank would raise short-term interest rates in the weeks or months ahead. Any rise in U.S. interest rates usually doesn’t bode well for oil prices, which are priced in dollars. Higher interest rates could push the dollar higher, making oil products more expensive for oil traders who hold a different currency. There is a continued speculation over whether major oil producers, including Russia and members of the Organization of the Petroleum Exporting Countries, will agree to limit output. Any consensus reached when officials meet in Algeria in late September would give the market a long-term boost. However, chances of the OPEC members arriving at a consensus was remote as Iran said it would only cooperate in talks to freeze output if fellow exporters recognized its right to fully regain market share.

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Russia to Partially Privatize Rosneft, Aiming to Raise US$11 Billion

Rosneft office

As part of the economic development plan for 2016, the Russian government is planning to partially privatize its flagship oil producer, Rosneft. Russia is hoping to get more than US$11 billion from the sale of a minority stake of Rosneft before the end of the year. This will help plug financial deficits in the Russian economy caused due to low crude prices. However, sanctions imposed on Moscow over its actions in Ukraine and the cautious approach of investors in investing money in Russia can prove to be detrimental for the Russian market. Added to this is the volatile nature of the commodity market. Rosneft is hoping to repeat the success it had a decade ago, when it managed to raise US$11 billion from its initial share offering.

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Ritchie Bros to Acquire Online Heavy Equipment Dealer IronPlanet for US$758.5 Million

RITCHIE BROS. AUCTIONEERS - Ritchie Bros. final auctions of 2013

Canadian-based Ritchie Bros Auctioneers Incorporated is acquiring IronPlanet for approximately US$758.5 million to accelerate its customer centric multi-channel diversification strategy. Ritchie Bros is world’s largest industrial auctioneer and a leading equipment distributor. IronPlanet is a leading online marketplace for used heavy equipment and other durable asset sales. IronPlanet will complement Ritchie Bros’ primarily end-user customer base as it focuses mainly on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. Its sales are mainly conducted through online-only platforms, with weekly online auctions and in other equipment marketplaces.

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Drop in Stocks of Major Gold Mining Companies


Gold prices dropped sharply against an exchange trade in New York, falling to $1327 per ounce. Gold is coming off a two-year high that it experiences earlier this month and this year to date it is still higher by more than 25% or nearly $270 an ounce.  The biggest drivers of the surge in gold prices for 2016 such as large scale gold futures and options speculators or investors such as hedge funds have been clearing back bullish bets and the frantic buying of the physically-backed gold exchange-traded funds (ETFs) have moderated.

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Engro Investing $840 Million in Power Sector As Part of Its Expansion Plans


Engro Corporation of Pakistan is planning to invest at least $840 million to serve the energy-starved country. This is part of its strategy to shift towards the power sector and construction at the $2 billion coal-based electricity plant at Tharpaker has already started. The plan is to construct a 450 MW Liquefied Natural Gas (LNG)-fuelled power generation plant and a second LNG terminal, respectively, at a cost of $700 million and $140 million. Engro is a Pakistani public multinational corporation based in Karachi with subsidiaries involved in production of fertilizers, foods, chemicals, energy and petrochemicals.

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Capacity of Renewable Energy in India Reaches 42,850 MW, Surpassing Capacity of Hydel Projects

The capacity of renewable energy plants in India, especially wind and solar, have hit 42,850 MW surpassing the capacity of big hydroelectricity projects. The hydel projects were once referred to as India’s biggest source of electricity and were regarded as “temples of modern India”. As per the latest assessment of the Central Electricity Authority, the capacity of hydel projects was 42,783 MW. However, India still depends mainly on thermal power which has a higher installed capacity.

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Galaxy Resources and General Mining Merge for Lithium

The Australian-based lithium miner Galaxy Resources and a joint venture partner General Mining are tying up to capitalise on the strong interest in lithium and the growing market for lithium-ion batteries in electric vehicles and energy storage systems. The merged group will have a pro-forma market capitalisation in excess of $700 million. Both the companies who are joint venture partners in the Mt Cattlin lithium mine in West Australia are of the opinion that this merger can create a large group of “global significance”.

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