Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
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Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)

The Saudi Ministry of Industry and Mineral Resources will organize on Jan. 11-13 in Riyadh, the International Mining Conference, which will be an opportunity for governments, companies and investors to discuss various issues and challenges facing the sector in the past two years.

Challenges of the Sector
In this context, the Global Mining Risk Survey 2021 report, issued by KPMG International, noted that the disruption of global supply chains posed a future challenge for the sector, adding that the cyclical fluctuations in global resource markets presented some difficulties for the mining sector.

With the market frequently unstable, the report said that mining companies must plan ahead, while boosting their use of scarce natural resources and pressing for cost solutions. It also stressed the need to increase focus on social responsibility programs.

According to the report, mining companies need to develop a more accurate view of the markets in which they operate, in order to chart the direction in which commodity prices are likely to head and make the right strategic decisions.

Sector Response
The reported noted that although the coronavirus pandemic has caused an economic recession in most countries of the world, it also led to higher stimulus spending in most key areas. This has increased demand for basic commodities, and prompted the mining sector to respond quickly to the unprecedented challenges posed by the pandemic, while ensuring the safety of employees and maintaining the security of supply chains.

The report indicated that commodity price fluctuations will force mining companies to constantly adjust their mine operations plans, in order to reach a much-needed value attraction, in the face of ever-changing market conditions.

Supply Chains
The problem of global supply chains continues to harm various industries, including mining, the report noted, which means that metal prices will rise in the next few months, and accordingly, the retail markets and the automobile industry will also be affected.

As for the means to solve the problem of supply chain disruptions, it will depend, to some extent, on the efforts to combat the spread of the coronavirus, especially with the emergence of the Omicron variant.

Nevertheless, the report pointed to signs of optimism as freight rates have decreased significantly in Asia and in freight lanes between the US West Coast, Asia and Europe.

Contrasting prices
According to Bloomberg’s analysis, in August 2021, the picture was not so bleak all the time for the mining sector, as iron was a big driver of profits for the largest producers, while the commodity hit a record level in the first half, at USD200 per ton.

Despite the recent decline in the prices of some commodities amid fears of a new surge of coronavirus cases, and with China’s move to limit the rise in costs, the prices of basic commodities for all categories are still registering record levels at the present time.



EU Approves Counter-tariffs on US Goods, Says Trade Deal within Reach

European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo
European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo
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EU Approves Counter-tariffs on US Goods, Says Trade Deal within Reach

European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo
European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo

The European Commission said on Thursday a negotiated trade solution with the United States is within reach - while EU members voted to approve counter-tariffs on 93 billion euros ($109 billion) of US goods in case the talks collapse.

The 27-nation bloc's executive has repeatedly said its primary focus is on reaching a deal to avert 30% US tariffs that US President Donald Trump has said he will apply on August 1.

"Our focus is on finding a negotiated outcome with the US ... We believe such an outcome is within reach," an EU spokesperson said in response to reporters' questions, Reuters reported.

Alongside negotiations, the Commission has pressed on with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval.

The rate would be up to 30%, designed to mirror US tariffs, EU sources said.

Diplomats said EU countries overwhelmingly approved the measures on Thursday, which the Commission later confirmed.

The first package of countermeasures would enter force on August 7, with tariffs on soybeans and almonds delayed until December 1, an EU official said. The second package would enter force in two stages on September 7 and February 7.

So far the EU has held back from imposing any countermeasures, despite Trump's tariffs already covering 70% of EU exports. EU member states authorised the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations.

CLOSING ON DEAL

The EU and United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15% tariff on EU goods imported into the US, mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision.

The White House said discussions of a deal should be considered "speculation". Trump trade adviser Peter Navarro told Bloomberg News the report from the EU should be taken with "a grain of salt."

French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso told a joint press conference in Paris they were not aware of a draft agreement, Urso adding he would only pass judgment when one was reached.

There was little information available about what the EU would offer the United States to secure a deal. One EU diplomat said the bloc was not looking at a pledge of investment in the United States, as Japan has agreed.

Another said the EU might reduce some of its own duties. Its current import duty for cars is 10%.

Under the outlines of the potential deal, the 15% rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5%.

There could also be exemptions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.

Washington does not, however, appear willing to lower its 50% tariff on steel.