Latest news with #Panamanian
Economist
7 hours ago
- Politics
- Economist
Panamanian farmers versus global shipping—and Donald Trump
In A remote part of Panama, where motorised canoe is the main mode of transport, a pristine asphalt road portends the arrival of a project unwanted by many locals. In February the Panama Canal Authority (ACP) approved a $1.6bn project that will see the Indio river dammed, flooding the lands of 630 families who live in the basin. In May, dozens of farmers waving Panamanian flags took to the Indio in their canoes to protest against the decision. 'This land is our heritage and our livelihood,' says Olegario Cedeño, a coffee and plantain farmer. 'They haven't given us any chance to debate this project.'
Fox News
12 hours ago
- Business
- Fox News
China may gain greater control of Panama Canal after BlackRock deal misses deadline
China may soon gain greater influence over the Panama Canal following the collapse of a proposed deal between U.S.-based BlackRock and Hong Kong's CK Hutchison, which had initially sparked tensions with Beijing. The original agreement would have transferred control of dozens of international ports — including two in Panama — to a consortium involving BlackRock. The deal was reportedly welcomed by former President Donald Trump, who voiced support for reducing Chinese influence over the canal and even floated the idea of the U.S. "taking back" the strategic waterway. However, Beijing pushed back. China advocated for state-owned shipping giant Cosco to be included in the transaction, signaling its desire for a direct stake, not just an indirect one through the Hong Kong-based Hutchison, in the canal's operations. Amid mounting pressure from China and the threat of an anti-monopoly investigation, CK Hutchison announced Monday that the exclusive negotiation window with BlackRock had expired. However, the company also signaled its openness to reconfiguring the deal. It said it would "remain open to discussions with a view to inviting a major strategic investor from the [People's Republic of China] to join as a significant member of the consortium." According to the company, changes in deal structure and participant makeup are necessary to gain approval from "all relevant authorities." The original $23 billion deal involved transferring ownership of 43 ports across 23 countries — including the two critical Panamanian ports located at either end of the canal in Balboa and Cristobal. CK Hutchison has operated both since 1997. The firm is owned by the family of Hong Kong's wealthiest man, Li Ka-shing. China's growing footprint in Latin American infrastructure has long raised bipartisan alarms in Washington. However, Trump stands out as the first modern U.S. president to suggest reclaiming the Panama Canal, which the U.S. completed in 1914 and handed over to Panama in 1999 under a treaty signed in 1977 during the Carter administration. "China is operating the Panama Canal, and we didn't give it to China — we gave it to Panama — and we're taking it back," Trump recently declared. One analyst believes China may ultimately be excluded from the Panama port holdings while gaining control of most other assets in the larger deal. "China will insist this be the quid pro quo: that the other global ports have Cosco participation. And obviously, Cosco is already a major global port holder," said Dane Chamorro, head of Global Risk Analysis at consulting firm Control Risks, in an interview with Fox News Digital. "From a U.S. perspective, they might say, 'Okay, great—we got Hutchison, or China (since they tend to refer to them interchangeably), out of the two Panama ports.' But in the long run, that may result in even more ports globally ending up in the hands of a Chinese state-owned entity." If that happens, Cosco — through this broader consolidation — would become "far and away the dominant port owner and operator globally," Chamorro said. "That aligns with the fact that China is the world's largest trading economy, the largest manufacturing economy, and the largest shipbuilder." Chamorro also noted that U.S. companies do not operate on the same global scale in the port industry as Chinese, Hong Kong or Singaporean firms. The failed Hutchison-BlackRock deal underscores the precarious position of Hong Kong businesses under growing pressure from Beijing to prioritize national loyalty — even when it threatens ties with Western partners. Meanwhile, Panama insists it retains full sovereignty over the canal itself and maintains that Hutchison's operation of the port facilities does not grant China any influence over canal operations.
The Age
a day ago
- Business
- The Age
Trump will be furious as China gatecrashes $35 billion party
On Monday, after the period of exclusive negotiations for the consortium ended, Hutchison announced it remained in discussions with the consortium 'with a view to inviting (a) major strategic investor from the PRC to join as a significant member of the consortium.' 'Changes to the membership of the consortium and the structure of the transaction … will be needed for the transaction to be capable of being approved by all relevant authorities,' it said. It also reiterated previous statements that it wouldn't proceed with any transaction that didn't have those approvals. The key approval needed is, of course, China's. Hutchison is a Cayman Island-registered, Hong Kong-listed private business founded by Li via the acquisition of control of the venerable Hong Kong trading house, Hutchison Whampoa, in 1979. It has reduced its exposure to China and Hong Kong over the years and now generates only about 12 per cent of its revenues from Greater China. It has substantial infrastructure and telecommunications interests in Europe, North America and Australia, where it owns the container terminals in Sydney and Brisbane, a 25 per cent interest in TPG Telecom and a significant portfolio of energy and transport infrastructure assets. Loading At face value, it shouldn't have been particularly vulnerable to pressure from Beijing, but it has obviously bowed to that pressure, which has reportedly included a directive from Beijing to its state-owned firms not to deal with any businesses linked to the Li family. Li Ka-shing's son Richard's ambitions of expanding his insurance business into the mainland have apparently been stalled, if not blocked. The 'major strategic investor from the PRC' that Hutchison referred to in its stock exchange release is almost certainly the state-owned Cosco, one of the world's largest shipping and marine logistics companies. The buying consortium was told that if Cosco wasn't included in the deal the sale of the ports would be blocked. There have also been reports that Cosco is seeking rights that would enable it to veto any decisions by the consortium considered inimical to China's interests. Including Cosco in consortium will create another point of tension between the US and China. Not only does Trump have a fixation with the Panamanian ports, to the point that he has threatened an invasion of Panama to gain control of them, but his administration has taken aim at China's global leadership in shipbuilding and container shipping. The US is proceeding with plans to charge punitive fees on Chinese-built ships entering US ports; fees that start at $US18 per net tonne of cargo, or $US120 per container, that would increase incrementally over time. Trump's ambition is to rebuild the US ship building and shipping industries. The US builds only a fraction of a per cent of the world's large commercial ships and has no meaningful presence in the global cargo shipping market. The collision of interests between the two major powers over the ports sale was regarded as important enough for it to be raised at the trade negotiations the US and China held in Switzerland in May. When the deal, and BlackRock's involvement in the acquiring consortium, was announced, Trump hailed it as both a victory for America and a personal triumph. Trump isn't going to willingly allow a Chinese state-owned company to have a substantial interest and say in the operation of the ports in Panama. China, which sees influence over the ownership of ports and shipping logistics around the world as a critical component of its geopolitical strategies, isn't going to readily relinquish either its influence over Hutchison or, if Cosco is successful, an opportunity to gain a more direct stake in the ports. One possible solution raised is the carving out of the Panamanian ports from the larger deal, allowing US interests to control those ports while clearing the way for Cosco's involvement with the rest. That would, however, mean China would be relinquishing whatever influence it has today over the fastest shipping route between Asia and the east coast of America. The other would be that the deal falls over and the status quo prevails, although Hutchison, which stands to clear $US19 billion of cash from a sale, would see that as a major lost opportunity. Trump's trade wars and his new port charges for Chinese-built or operated ships will have massively disruptive effects on global supply chains and global port activity and container shipping volumes. Indeed, they are already having an impact, with container volumes at America's west coast ports falling away as his tariffs take effect. Loading The planned sale and exit from the ports was therefore well-timed and an example, if one were needed, of Li Ka Shing's business acumen. Now he and his family find themselves caught between the proverbial rock and a hard place, trying to sell highly strategic global infrastructure assets in the middle of a global trade war and a geopolitical struggle between the world's two major powers.
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
Trump's trade war: China muscles into Panama Canal ports deal
On Monday, after the period of exclusive negotiations for the consortium ended, Hutchison announced it remained in discussions with the consortium 'with a view to inviting (a) major strategic investor from the PRC to join as a significant member of the consortium.' 'Changes to the membership of the consortium and the structure of the transaction … will be needed for the transaction to be capable of being approved by all relevant authorities,' it said. It also reiterated previous statements that it wouldn't proceed with any transaction that didn't have those approvals. Trump isn't going to willingly allow a Chinese state-owned company to have a substantial interest and say in the operation of the ports in Panama. Credit: Getty Images The key approval needed is, of course, China's. Hutchison is a Cayman Island-registered, Hong Kong-listed private business founded by Li via the acquisition of control of the venerable Hong Kong trading house, Hutchison Whampoa, in 1979. It has reduced its exposure to China and Hong Kong over the years and now generates only about 12 per cent of its revenues from Greater China. It has substantial infrastructure and telecommunications interests in Europe, North America and Australia, where it owns the container terminals in Sydney and Brisbane, a 25 per cent interest in TPG Telecom and a significant portfolio of energy and transport infrastructure assets. Loading At face value, it shouldn't have been particularly vulnerable to pressure from Beijing, but it has obviously bowed to that pressure, which has reportedly included a directive from Beijing to its state-owned firms not to deal with any businesses linked to the Li family. Li Ka-shing's son Richard's ambitions of expanding his insurance business into the mainland have apparently been stalled, if not blocked. The 'major strategic investor from the PRC' that Hutchison referred to in its stock exchange release is almost certainly the state-owned Cosco, one of the world's largest shipping and marine logistics companies. The buying consortium was told that if Cosco wasn't included in the deal the sale of the ports would be blocked. There have also been reports that Cosco is seeking rights that would enable it to veto any decisions by the consortium considered inimical to China's interests. Including Cosco in consortium will create another point of tension between the US and China. Hutchison's ports sale includes assets located in the Panama Canal. Credit: Bloomberg Not only does Trump have a fixation with the Panamanian ports, to the point that he has threatened an invasion of Panama to gain control of them, but his administration has taken aim at China's global leadership in shipbuilding and container shipping. The US is proceeding with plans to charge punitive fees on Chinese-built ships entering US ports; fees that start at $US18 per net tonne of cargo, or $US120 per container, that would increase incrementally over time. Trump's ambition is to rebuild the US ship building and shipping industries. The US builds only a fraction of a per cent of the world's large commercial ships and has no meaningful presence in the global cargo shipping market. The collision of interests between the two major powers over the ports sale was regarded as important enough for it to be raised at the trade negotiations the US and China held in Switzerland in May. When the deal, and BlackRock's involvement in the acquiring consortium, was announced, Trump hailed it as both a victory for America and a personal triumph. Trump isn't going to willingly allow a Chinese state-owned company to have a substantial interest and say in the operation of the ports in Panama. China, which sees influence over the ownership of ports and shipping logistics around the world as a critical component of its geopolitical strategies, isn't going to readily relinquish either its influence over Hutchison or, if Cosco is successful, an opportunity to gain a more direct stake in the ports. One possible solution raised is the carving out of the Panamanian ports from the larger deal, allowing US interests to control those ports while clearing the way for Cosco's involvement with the rest. That would, however, mean China would be relinquishing whatever influence it has today over the fastest shipping route between Asia and the east coast of America. The other would be that the deal falls over and the status quo prevails, although Hutchison, which stands to clear $US19 billion of cash from a sale, would see that as a major lost opportunity. Trump's trade wars and his new port charges for Chinese-built or operated ships will have massively disruptive effects on global supply chains and global port activity and container shipping volumes. Indeed, they are already having an impact, with container volumes at America's west coast ports falling away as his tariffs take effect. Loading The planned sale and exit from the ports was therefore well-timed and an example, if one were needed, of Li Ka Shing's business acumen. Now he and his family find themselves caught between the proverbial rock and a hard place, trying to sell highly strategic global infrastructure assets in the middle of a global trade war and a geopolitical struggle between the world's two major powers. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
Yahoo
5 days ago
- Business
- Yahoo
First Quantum explores gold streaming deal from Zambia mine
Canadian mining company First Quantum Minerals is considering a gold pre-payment agreement from its mines in Zambia as a new funding strategy to improve its finances, reported Reuters, citing the company's CFO Ryan MacWilliam. Gold streaming involves an initial payment by a buyer to a miner in exchange for the right to buy a portion of future gold production at a set price. This financing mechanism is becoming an increasingly attractive option for miners needing upfront capital. The focus on gold streaming deals is in response to high gold prices and the robust market for such financial arrangements. MacWilliam said during an analyst call on the company's quarterly results: "We have obviously seen record-high gold prices, that means the gold pre-payment or streaming market is strong, it is obviously an active market, and that gives a variety of options from a financial perspective, in addition to those we have talked about before." Last year, the company considered selling a minority interest in its two Zambian mines. However, First Quantum has indicated that although the potential sale remains a possibility, the current focus is on investigating gold streaming agreements from its Kansanshi mine in Zambia. The S3 Expansion project at Kansanshi is nearing the completion of its commissioning phase, and is on track to start initial production in the latter half of 2025, while remaining within the allocated budget. The Zambian mines are particularly significant for First Quantum following the 2023 shutdown of its Cobre Panama copper mine due to a dispute with the Panamanian Government. The company is engaged in ongoing discussions with Panamanian officials to resolve the situation. The closure of the mine was ordered by Panama's top court after significant public protests, but, in June, President Jose Mulino permitted the export of copper concentrate that had been mined before the shutdown. First Quantum has disclosed that it is incurring monthly expenses of $15m (C$20.52m) for the care and maintenance of the Cobre Panama mine. This cost is projected to increase to between $17m and $18m by the end of the year. "First Quantum explores gold streaming deal from Zambia mine" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
