Latest news with #steelmaking
Reuters
5 hours ago
- Business
- Reuters
ArcelorMittal signs deal to sell its steel mill and iron ore mine in Bosnia
SARAJEVO, June 20 (Reuters) - ArcelorMittal, the world's second-largest steelmaker, signed a deal on Friday to sell its steel mill and iron ore mine in Bosnia and Herzegovina to the Bosnia-based Pavgord Group, the company said in a statement. The completion of the deal is planned for the third quarter of 2025, after all conditions for its implementation have been fulfilled, the company said.
Khaleej Times
a day ago
- Business
- Khaleej Times
Nippon Steel closes US Steel acquisition under strict conditions
Nippon Steel completed its multi-billion-dollar acquisition of US Steel on Wednesday, granting rare veto-like power over strategic decisions to Washington with a "golden share". The announcement concludes a saga that began in December 2023, when Nippon Steel agreed to acquire the linchpin of American steelmaking for $14.9 billion. An outright buyout sparked bipartisan political opposition, including from US President Donald Trump, who railed against the proposed deal throughout the 2024 presidential campaign. But last month he announced a pivot, branding the revamped venture -- blocked by former president Joe Biden on security grounds -- as a "partnership" rather than a takeover. A national security agreement between the companies and the US government provides that approximately $11 billion in new investments will be made by 2028. And Washington's non-economic golden share allows it to appoint one independent director as well as granting consent rights for proposed capital budget cuts among other powers. Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this "won't hinder activities that we hope to conduct." "The agreement is fully satisfactory to us, as it ensures the management freedom... essential for business investment," Hashimoto told reporters. "We intend to start implementing measures for revitalisation and development as soon as possible," he said, promising not to "transfer jobs and production sites elsewhere." It is "only natural" that the US government would be concerned about the takeover of a symbolic company, which dates back to 1901, Hashimoto added. 'Massive victory' A source close to the matter said Nippon Steel had bought all common shares of US Steel, completing the merger. The deal creates the world's fourth biggest steelmaker -- but Nippon Steel faces several big challenges, from trade tariffs to weak demand for steel products worldwide. Nippon Steel shares were up 2.4 percent Thursday afternoon, even as Tokyo's benchmark Nikkei index slumped 0.9 percent. Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome "a massive victory for working families in the Mon Valley, our economy, our national security, and America's manufacturing future!" But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to "continue watching, holding Nippon to its commitments," according to a statement. "We will use the most powerful tool workers have against global corporations: collective bargaining." Biden had blocked the transaction in early January, shortly before leaving office. He said that placing "one of America's largest steel producers under foreign control" could "create risk for our national security and our critical supply chains." Government influence Besides agreeing to keep US Steel's Pittsburgh headquarters and to maintain US production, the national security agreement calls for a majority of US Steel's board to be US citizens, as are key leaders including the CEO. The "golden share" does not entitle the US government to dividends, nor does it require Washington to make investments in the company. While the structure gives the government "extraordinary" influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, said Atlantic Council senior fellow Sarah Bauerle Danzman. Nippon Steel's promise of investment means more steel will be produced in the United States, leading to a likely drop in steel prices, said Gordon Johnson, CEO of GLJ Research. "US Steel was talking about closing significant capacity in Pennsylvania, which would have devastated a big swathe of that economy. So this is definitely a win for the US worker, it's definitely a win for the US economy," he told AFP.
Yahoo
a day ago
- Business
- Yahoo
Rio Tinto Secures ARENA Support to Advance Decarbonisation Project
Rio Tinto Group RIO announced that its joint venture NeoSmelt secured Australian Renewable Energy Agency's ('ARENA') support for its planned Western Australian pilot plant. Rio Tinto, BHP Group BHP, and BlueScope, Australia's largest steelmaker, formed the NeoSmelt collaboration in February 2024. The joint venture was formed to develop Australia's largest ironmaking electric smelting furnace (ESF) pilot plant in Western aim was to advance decarbonizing the steelmaking process, which is the need of the hour, considering that steel production accounts for around 8% of the world's carbon combined BHP and Rio Tinto's knowledge of Pilbara iron ore with BlueScope's unique operating experience in ESF technology. BlueScope is the operator of the world's only ESF processing direct reduced iron (DRI) in New Woodside Energy and Mitsui Iron Ore Development have teamed up with Rio Tinto, BHP Group and BlueScope to grow NeoSmelt further. NeoSmelt secured A$19.8 million ($12.9) for a FEED study to develop lower-carbon production using Pilbara iron ore. The Western Australian Government has previously committed A$75 ($48.9) million contribution to the NeoSmelt pilot plant will test and optimize the production of iron from the ESF. The ESF is capable of producing iron suitable for the basic oxygen steelmaking process. Iron ore is first converted to DRI before being charged into the ESF. The DRI-ESF equipment can replace the traditional blast furnace. This can help in reductions of up to 80% in CO2 emission intensity compared with the conventional blast furnace steel pilot plant will produce molten iron of 30,000-40,000 tons a year. It will initially use natural gas to reduce iron ore to DRI. Once operational, the project aims to use lower-carbon emissions hydrogen for the project is currently in the feasibility phase, and the final investment decision for the pilot plant is expected in 2026, with operations anticipated to start in 2028. In the past year, shares of the company have lost 6.7% against the industry's 1% growth. Image Source: Zacks Investment Research Rio Tinto currently has a Zacks Rank #4 (Sell).Some better-ranked stocks from the basic materials space are SSR Mining Inc. SSRM and ATI Inc. ATI. SSR Mining currently sports a Zacks Rank #1 (Strong Buy), and ATI carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM's 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSR Mining stock has soared 88.6% last has an average trailing four-quarter earnings surprise of 12.54%. The Zacks Consensus Estimate for ATI's 2025 earnings is pegged at $3.01 per share, indicating year-over-year growth of 22.4%. ATI shares have jumped 54% last year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report ATI Inc. (ATI) : Free Stock Analysis Report Rio Tinto PLC (RIO) : Free Stock Analysis Report Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
2 days ago
- Business
- The Independent
Nippon Steel finalizes $15B takeover of US Steel after sealing national security agreement
Nippon Steel and U.S. Steel said Wednesday they have finalized their 'historic partnership,' a year-and-a-half after the Japanese company first proposed its deal to buy the iconic American steelmaker for nearly $15 billion. The pursuit by Nippon Steel for the Pittsburgh company was buffeted by national security concerns and presidential politics in a premier battleground state, delaying the transaction for more than a year after U.S. Steel shareholders approved it. It also forced Nippon Steel to expand the deal, including adding a so-called 'golden share' provision that gives the federal government a say in some matters. 'Together, Nippon Steel and U.S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities,' the companies said. The combined company will become the world's fourth-largest steelmaker, and bring what analysts say is Nippon Steel's top-notch technology to U.S. Steel's antiquated steelmaking processes. In exchange, Nippon Steel gets access to a robust U.S. steel market, strengthened in recent years by tariffs under President Donald Trump and former President Joe Biden, analysts say. Nippon Steel and U.S. Steel did not list the full terms of the deal, and did not release a national security agreement struck with Trump's administration. But in a statement Wednesday, the companies said the federal government will have the right to appoint an independent director and 'consent rights' on specific matters. Those include reductions in Nippon Steel's capital commitments in the national security agreement, closing or idling of U.S. Steel's existing domestic facilities and changing U. S. Steel's name and headquarters. Nippon Steel announced in December 2023 that it planned to buy the steel producer for $14.9 billion in cash and debt, and committed to keep the U.S. Steel name and Pittsburgh headquarters. The United Steelworkers union, which represents some U.S. Steel employees, opposed the deal, and Biden and Trump both vowed from the campaign trail to block it. Biden used his authority to block Nippon Steel's acquisition of U.S. Steel on his way out of the White House after a review by the Committee on Foreign Investment in the United States. After he was elected, Trump changed course and expressed openness to working out an arrangement and ordered another review by the committee. That's when the idea of the 'golden share' emerged as a way to resolve national security concerns and protect American interests in domestic steel production. As it sought to win over American officials, Nippon Steel also made a series of bigger capital commitments in U.S. Steel facilities, tallying $11 billion through 2028, it said. ___
The Guardian
5 days ago
- Business
- The Guardian
British politics is in a loop and it's Farage's vision that's stuck on repeat
As so often happens, what Nigel Farage said on a recent visit to south Wales deserved endless pejoratives. It was ludicrous, condescending, half-baked, opportunistic and plain stupid. Even he didn't seem to know exactly what he wanted. At a Reform UK press conference in Port Talbot, he seemed to make the case for reopening the town's steel-making blast furnaces, before admitting that 'it might be easier to build a new one', though he also acknowledged that it would 'cost in the low billions' to do so. But he had even more dizzying visions of reopened Welsh mines. 'If you offer people well-paying jobs … many will take them,' said Farage, 'even though you have to accept that mining is dangerous.' The climate crisis, predictably enough, was not worth considering. He also did not offer any opinions about coal-related issues such as slag heaps, land slips, rivers that run black, and unimaginable underground disasters. When he was asked where new pits might be located, he blithely offered the opinion that it 'comes down to geology'. That is true, up to a point, but he would surely also have to think about the housing developments and business parks that often sit atop all those disused coal seams. The whole thing was – of course – politics on the level of pub bullshit, but Farage and his people presumably knew that. What mattered was the resulting spectacle: Britain's foremost populist proposing to 'reindustrialise' Wales, in the face of entirely reasonable doubts, mockery and outright opposition from voices easily maligned as the usual distant elites. In that sense the visit was a win, repeating a formula that has been working for a very long time. Besides Farage's own enviable political skills, there are obvious reasons for that. The first is to do with the fact that the basic social and economic conditions that fed into the rise of the UK Independence party and the Brexit referendum remain unchanged. It seems, in fact, to be 2016 for ever: Britain is still a country of anaemic growth and productivity, ongoing local austerity, stagnant wages and fear of the future. Those conditions explain people's ever-deepening disdain for mainstream politicians, and their sense that as life constantly goes round in circles, Westminster does not seem able or willing to break the pattern. Every grim rotation, moreover, seems to be accompanied by ever-more extreme manifestations of the country's dysfunctionality. Our passage to a new political era used to be marked by the results of elections and referendums. But of late, it feels as if more vivid proof of where we are heading is provided by civil disturbances. Last year's summer riots were an obvious example. In the same week that saw massed violence in Salford, we have just seen horrific outbreaks of racist violence in the Northern Irish town of Ballymena, and Farage has offered opinions that follow his usual slippery script: 'I just wonder whether it is not a deeper, broader problem we saw something of after Southport last year. You know what? If they'd listened to me, none of this would have happened.' A question not asked enough in political journalism is what life in contemporary Britain feels like. The answer in part comes down to a profound sense of tension and a constant, latent fear that something awful is about to happen. Farage attracts supporters by offering himself as an answer to that feeling – but to those who recoil from him, he is the source of it. Like Donald Trump, that combination makes him a very zeitgeisty politician. So does his presence on social media – which, even if most politicians do not yet understand it, has changed what is required to be a successful public figure even more radically than TV once did. Farage has 1.3 million TikTok followers, as many as every other Westminster politician combined. Particularly since Elon Musk turned Twitter into X, he is regularly cited and praised in the parallel news universe that millions of people now take their information from – full of scurrilous rumours and explanations for events rooted in QAnon-like conspiracies. That ecosystem blurs into the nightmarish version of reality X offers as a kind of mood music, represented by endless videos of violence and hostile altercations between members of the public. All this suits Farage – and Farage-ism – just fine. His key asset is a diagnosis of people's problems that gets simpler and sharper by the week: you are scared and struggling, he and his allies tell the public, because the government spends too much money on foreigners and is full of privileged and snobby people who know nothing of your pain. The Greater Manchester mayor Andy Burnham recently gave an interview to the centre-left journal Renewal, in which he mused on what effective political communication now entails. The governments led by Tony Blair and Gordon Brown, he said, operated in 'a world of nuance', but social media 'just ended all of that'. What he said next sounded like a brisk answer to why Farage is winning: our modern means of communication, he said, 'changed politics, and politics hasn't changed enough to reflect that … people want instant opinions from elected representatives. They want authentic opinions'. Six weeks ago I watched Farage do a walkabout in a neighbourhood of Scunthorpe, surrounded by crowds of people jostling to take pictures of him on their phones. Not long after he had been presented with an Airfix tank, he commented that all the attention was 'the benefit of just being real, you know what I mean?' Clearly, just like Boris Johnson in his pomp, a great deal of his persona – the clothes, the pints, every calculated pronouncement – is actually affectation and pretence. But politics is now so low on charisma and the common touch that simply being comfortable in your own skin looks like a kind of spectacular normality. In that sense, Starmer and Labour's other high-ups might be Farage's ideal adversaries. With the possible exception of Angela Rayner, they are mostly bloodless and hesitant. They cling on to a presentational style that is 20 years out of date, built around pre-ordained news themes on the proverbial 'grid', set-piece interviews, and complicated and chronically abstract rhetoric: 'missions', 'renewal', the constant chase for growth. Of late, the prime minister has tried his own occasional approximations of Farage's approach, putting up such blunt and boastful online posts as: 'I've already returned over 24,000 people with no right to be here. And I won't stop there.' But that style rings hollow, because he doesn't have Farage's swaggering confidence nor any understanding of how to bring such directness to the way he talks about Labour's fundamentals: the economy, jobs, public services. There is also something to be said about how the government intends to change the country. After a wasted year, last week's spending review contained a surprising amount of good news, not least on housing. But it was all about the kind of investment that will not start to become visible until 2028 or 2029. Everyday life, it seems, will continue moving in ever-decreasing circles for another three or four years. That is a long time for Farage to carry on making mischief, as he illustrates an aspect of modern Britain too little understood – that, to an extent that vividly illustrates other people's colossal failures, he looks like the only front-rank figure who understands how 21st-century politics actually works. John Harris is a Guardian columnist
