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More detail in depeches today re the signed power contract :

.."‘The project will be built in two phases, namely the solar and biomass component.

The next phase will be to look for financing, and that's Complant's responsibility. To do this, from December onwards, Complant will be sending technicians and engineers to check the details that we have sent to their structures, to the Chinese government.

The agreement will also involve a trip to China by a delegation from Tinda Energy and the Ministry of Economic and Social Zones to see what has already been done by the Chinese company, particularly in the solar and biomass sectors..."

The sequencing of feasibility and due diligence seems a bit a*se about face to me.

The SEZ Minister's CV is a bit curate's egg-ish

https://en.wikipedia.org/wiki/Jean-Marc_Thyst%C3%A8re_Tchicaya

Let's see if 'this time it's different'.

GLA

...Continued

The lawsuit in US courts stems from Argentina’s seizure of YPF in 2012. US District Judge Loretta Preska ruled in 2023 that the nationalization of YPF violated the company’s bylaws that required the energy firm to make a tender offer to all shareholders.

Argentina is appealing Preska’s collection judgment, but failed to post security during the appeal. That led Preska to rule in January that the judgment — the biggest ever ordered by the federal court in Manhattan — was subject to immediate collection, before the appeal is decided.

The most recent wrinkle in the case came Wednesday when the US Department of Justice sent Preska a letter asking she not allow Burford and others to seize YPF’s US-listed shares. The Justice Department said allowing a private litigant to seize foreign assets on US soil poses risks to US foreign policy interests and reciprocity abroad.

The stakes are high for Argentina not just in this case, but also as a litmus test in Milei’s bid to attract foreign investment. The president’s new reforms meant to bring in large foreign investments specifically allow companies to resolve potential legal disputes outside Argentina should a project go awry there.

The case is Petersen Energia Inversora SAU v. Argentine Republic, 15-cv-02739, US District Court, Southern District of New York (Manhattan)..."

GLA

Hat tip to foetus in your brain ((?!) for this

Burford Capital Open to Argentine Bonds for $16 Billion Judgment

Kevin Simauchi and Jonathan Gilbert

Fri, November 8, 2024 at 9:08 AM EST 3 min read

(Bloomberg) -- Investors who won a $16 billion judgment against Argentina over its nationalization of energy firm YPF SA more than a decade ago are open to receiving payment in bonds instead of cash, according to people familiar with the matter.

Burford Capital, a litigation funder that’s the biggest stakeholder in the case, would accept sovereign bonds or other marketable securities, considering the Argentine central bank’s depleted foreign reserves, the people noted, asking not to be identified because the discussions are private. It acquired rights to the lawsuit in 2015 for $16.6 million from former YPF shareholders and stands to make at least $6.2 billion if the full judgment is paid.

The fund’s more flexible stance on repayment could mark an olive branch in a dispute that’s dragged on Argentina’s attempts to emerge from decades of financial debacles. Talks between Burford representatives and government officials have gone nowhere despite meetings in recent weeks, the people said. The lack of meaningful progress under President Javier Milei, who took office last December, comes more than a year since a US federal judge ruled in Burford’s favor.

Argentina’s Economy Ministry and Milei’s chief spokesperson didn’t respond to requests for comment. Milei remarked several months ago on the possibility of selling a “perpetual bond” to pay down the YPF case, but no concrete strategy emerged. The central bank has more liabilities than assets, an impediment to cash payments known as net negative reserves.

Wall Street has warmed up to Argentine dollar bonds as Milei implements strict austerity measures while he passed business-friendly reforms through Congress. Sovereign notes, which were deep in distressed territory a year ago, are now the best performers in emerging markets so far in 2024.

But Argentina’s history of default on sovereign debt would lend a note of irony to Burford receiving them as payment. In the case most frequently compared to the YPF one, Paul Singer’s Elliott Management sued the Argentine government over its 2001 default and waged a 15-year court fight to collect on sovereign debt it held. Argentina settled with Singer and other investors for $4.7 billion in 2016.

The dispute comes against the backdrop of another severe recession in Argentina marked by 200% inflation and Milei’s bid to shore up the nation’s reputation abroad. On top of the YPF case, the libertarian must also manage a $44 billion program with the International Monetary Fund as well as a $1.5 billion case in the UK and payments to the nation’s current bondholders due in January.....

Continued....

Hi 99icecream,

Point taken re the Chinese interest in keeping export prices down, to benefit its home market.

With outsiders Oman and SQM still in the frame, mightn't there be some pressure to allow some margin for profitability eg a reference to market prices ? Apart from anything else, C-B itself would benefit (and maybe the population, not just the ' insiders').

Or is that wishful thinking ? And did I just see a soya-bean fed pig fly past ?

Fingers crossed for all invested.

ATB

Good spot! Though I'm not sure that AD Ports would count as a 'private company'.

OTOH, one of the other projects is 'customs' related, so certainly signs of 'logistics-related' activity.

I've posted about some other 'journalist-related' curiously coincidental activity on the other board that MIGHT also be an indication that 'summat's up'.

Here's hoping

GLA

Continued...

.."The same year French authorities seized a mansion from him but said he had not been indicted. (Mr Sassou Nguesso did not reply to a request for comment.) French magistrates are also probing property purchases by other family members.

In total, investigators have identified at least $200m of suspect funds, not all of it related to the hospital programme. Recovering the money could, in theory, make a difference to Congo’s public infrastructure. Yet that moment seems a long way off. Investigations in France and Portugal have dragged on for more than ten years without resulting in charges being filed. In July Portuguese authorities auctioned a villa in Lisbon worth $12m that they allege was bought for a high-ranking Congolese official. The money will be held in trust until the case is concluded.

Proceedings in America should be speedier. However, even if the DOJ is successful, returning the money might be tricky as long as Denis Sassou Nguesso remains in power. As a former FBI agent who worked on the case puts it, repatriating stolen assets has not been easy in cases where “dad was still president”. ■

Yesterday an article from someone from the 'hard right' with strong UAE/Abu Dhabi connections about US policy failures surrounding corruption in adjacent Angola (Asperbras's African base) ; today, an article from the 'liberal left' (?) on a long-running (and hardly 'new news' - regrettably, not 'fake' *) expose of similar corruption in C-B.

* go to sassoufit.org ( a pun on the family name = 'enough's enough') for the sordid details

Why both? Why now ?

Are they something to do with the US election result....or a negotiating or 'spoiling'tactic in a tricky dance over Zanaga ?

Curiouser and curiouser...

GLA and ATB

.."Murkier and murkier..."

And - as if on cue - this from the Economist today :

https://www.economist.com/middle-east-and-africa/2024/11/07/congo-brazzaville-has-lost-a-big-chunk-of-its-oil-revenue

"Congo-Brazzaville has lost a big chunk of its oil revenue

A court case offers a glimpse into what may have happened to the country’s money

Hospital in Brazzaville in Congo

Nov 7th 2024

MORE THAN a decade ago the Republic of Congo, an oil-producing country of 6m people in central Africa, wanted to improve its decrepit health-care infrastructure. It paid €491m (then worth $658m) to a Brazilian company called Asperbras to build a dozen new hospitals.

Ten years on, the country could use them. The already dire state of public health in central Africa has been made worse by the mpox epidemic. The disease has killed more than 1,000 people and infected tens of thousands across the region this year alone, including several in Congo.

Yet of the 12 hospitals that were promised, only four have been built, according to Publiez Ce Que Vous Payez-Congo, a watchdog. (Asperbras says its companies conducted their business in accordance with the law and their contractual obligations.) Meanwhile, much of the money has disappeared. Where did it go?

Legal proceedings in America, France and Portugal allege that a good chunk may have ended up in the pockets of some of the president’s relatives. Denis Sassou Nguesso has ruled the country since 1979, with a brief gap between 1992 and 1997. Court documents offer a glimpse into the mechanisms by which some of his family members allegedly enriched themselves at the expense of fellow Congolese.

America’s Department of Justice (DOJ) is trying to seize a flat in Trump International Hotel and Tower in Manhattan. In court filings in New York, prosecutors allege that José Veiga, a Portuguese fixer for Congo’s president, bought the flat for $7.1m on behalf of Claudia Sassou Nguesso, one of the president’s daughters. In a forfeiture complaint prosecutors allege that the money used to buy it was diverted from the hospital-building programme.

Ms Sassou Nguesso did not reply to requests for comment. Members of her entourage have previously described allegations that she has a flat in New York as “fake”. Lawyers for Mr Veiga declined to comment, but a company he manages is contesting the DOJ’s attempt to seize the property in Trump Tower, arguing that prosecutors have failed to prove that it was bought for Claudia using embezzled funds. Asperbras says it has always acted in accordance with the law and that it severed ties with Mr Veiga upon learning of the allegations against him.

The flat in Trump Tower is not the only property to have attracted suspicion. In 2022 authorities in America seized an apartment in Miami, worth $2.8m, from Denis-Christel Sassou Nguesso, Claudia’s brother.

Continued.....

Speaking of ports, these articles show the challenges facing the UAE (and in similar vein Saudi) as it seeks to navigate between the 'historic ally' US and 'new friend' China :

https://www.al-monitor.com/originals/2024/10/uaes-ad-ports-group-inks-major-deal-china

alongside

https://www.businessinsider.com/china-continues-uae-military-base-major-snub-us-wapo-2023-4

I wonder whether the Don's electoral success will change the calculus and - if so - in which direction(s)?

GLA

99icecream (amongst other 'overlappers') might have some further insight, but my understanding was that synergies with KP2 would likely be at the export stage, the logical destination for its fertiliser products being Brazil/Argentina (for soy and other crops)...and with AD Ports' facility directly across the Atlantic from these markets.

GLA

.."The FOCAC follow up gang from Beijing are in Brazzaville and today, having met Big D, have been signing deals on solar power and SEZs..."

Detail here, from a couple of years back :

Depeches and adiac report reactivation of a PPP solar/biomass power system for SEZ's, first mooted in 2022

https://www.afrik21.africa/en/congo-tinda-cash-to-produce-electricity-via-solar-and-biomass-in-ignie/

.." The first plant, with a capacity of 55 MW, will be a hybrid solar power plant. The second plant, with an installed capacity of 10 MW, will generate electricity from household waste.

Tinda Cash Group has 36 months to complete the project in the Ignie Special Economic Zone with an investment of $150 million. The group will benefit from the technical support of the Chinese construction giant Sinohydro and the Chinese company JA Solar, which specialises in the manufacture of photovoltaic products distributed in more than 100 countries worldwide...."

Tinda Congo seems to be a brassplate operation, judging by its website

https://tindaenergygroup.com/portfolio

It now seems the original 2 x Chinese co's are out, replaced by a third - Complant - who (perhaps the reason?) "will provide finance".

Complant itself seems a serious counterpart.

https://www2.yicaiglobal.com/news/china-complant-to-build-solar-plants-worth-usd232.5-million-in-vietnam

Maybe this time...?

GLA

And, as for the US effort, a fairly withering takedown ('too little, too late...and misdirected') here

https://asiatimes.com/2024/11/the-us-pivot-to-africa-is-not-working/

.."China, Russia entrench on continent of the future while US showers funds without accountability or strategic focus.."

The author, Erik Prince, was the founder of Blackwater, the US's (private sector) answer to the Wagner Group and has close ties with Saudi and the UAE (incl their covert ops in Libya and elsewhere) ....and with 'team Trump', it would seem : https://en.wikipedia.org/wiki/Erik_Prince

Murkier and murkier...

GLA

Https://dabafinance.com/en/news/africa-finance-corp-plans-300m-islamic-bond-as-gulf-interest-rises

.."Africa Finance Corporation (AFC) to issue $300 million Islamic bond by year’s end, targeting Gulf nations for African infrastructure projects.

First Abu Dhabi Bank to coordinate issuance, with Emirates NBD Capital and SMBC as lenders.

AFC strengthening Gulf ties through collaborations with Arab Bank, Saudi Export-Import Bank, and Saudi Fund for Development...."

Safety in numbers....

.."Founded in 2007 and based in Nigeria, the firm serves as an alternative to the African Development Bank, having provided $13 billion across 36 African countries..."

AFC’s Islamic bond issuance reflects Africa’s strengthening financial ties with the Gulf, as African nations align with Saudi Arabia's Vision 2030 goals, which emphasize diversifying away from oil. Africa is well-positioned to supply Saudi Arabia with materials to support this economic transition.

AFC’s collaborations with Gulf institutions signal a growing commitment to joint infrastructure financing, crucial for Africa’s development.

GLA

DoJ letter submitted.

hxxps://www.msn.com/en-us/money/companies/us-sides-with-argentina-in-dispute-over-16-billion-ypf-judgment/

.."NEW YORK (Reuters) - The U.S. government sided with Argentina in urging a federal judge not to force the cash-strapped country to give up its 51% stake in oil and gas company YPF to partially satisfy a $16.1 billion court judgment.

In a Wednesday night letter to U.S. District Judge Loretta Preska in Manhattan, the Department of Justice said it has long argued that U.S. courts cannot order the seizure of foreign sovereign property located outside the United States.

It also said it would violate sovereign immunity to require Argentina to turn over the shares to two investors represented by litigation funder Burford Capital, and that allowing such a turnover could interfere with U.S. foreign policy...."

No comment (so far) from Burford.

Seb's laconic observation :

..."Let me clarify two things:

1. This is not related to the Alter Ego, nor the appeal, nor the USD 16.1 billion ruling. It is part of the execution of both sentences.

2. This is not related to Trump's election. We knew the due date for this opinion since September. Look for my tweets..."

GLA

Depeches and adiac report reactivation of a PPP solar/biomass power system for SEZ's, first mooted in 2022

https://www.afrik21.africa/en/congo-tinda-cash-to-produce-electricity-via-solar-and-biomass-in-ignie/

.." The first plant, with a capacity of 55 MW, will be a hybrid solar power plant. The second plant, with an installed capacity of 10 MW, will generate electricity from household waste.

Tinda Cash Group has 36 months to complete the project in the Ignie Special Economic Zone with an investment of $150 million. The group will benefit from the technical support of the Chinese construction giant Sinohydro and the Chinese company JA Solar, which specialises in the manufacture of photovoltaic products distributed in more than 100 countries worldwide...."

Tinda Congo seems to be a brassplate operation, judging by its website

https://tindaenergygroup.com/portfolio

It now seems the 2 x Chinese co's are out, replaced by a third - Complant - who will provide finance.

Complant itself seems a serious counterpart.

https://www2.yicaiglobal.com/news/china-complant-to-build-solar-plants-worth-usd232.5-million-in-vietnam

Maybe this time...?

GLA

HTTps://stratnewsglobal.com/world-news/philippines-coast-guard-to-receive-40-french-patrol-boats-for-enhanced-security/

Yes, but will they know where to send them, without some kind of Maritime Domain Awareness system ?

Shome mishtake, Shirley!

GLA

Agree - good news re the BUR s/p. Today's the day the DoJ is due to deliver its Statement of Interest to Preska. Connected?

As Seb has pointed out, this intervention will reflect the current administration views.

Preska is supposed to deliver her ruling by year-end (calendar), one wonders whether there's a chance of it being delayed ? [My Q, not his!]

Re your Trump and covid comment, 'recollections may differ' : see https://en.wikipedia.org/wiki/Operation_Warp_Speed

.."On May 15, 2020, President Donald Trump officially announced the public-private partnership. The purpose of Operation Warp Speed was to coordinate Health and Human Services-wide efforts, including the NIH ACTIV partnership for vaccine and therapeutic development, the NIH RADx initiative for diagnostic development, and work by BARDA.

Operation Warp Speed was formed to encourage private and public partnerships to enable faster approval and production of vaccines during the COVID-19 pandemic......"

ATB

Cyclone's mine is close to Champion Iron's Bloom Lake, I had a look-in.

Jayoth George (GLEN) is still on the Board of Directors. The co is hoping to ramp production up to 15 Mtpa of its premium ore. GLEN still has an offtake arrangement.

https://www.championiron.com/wp-content/uploads/2024/10/fy2025-q2-webcast-presentation-october-31-2024-vfinal.pdf

The Green Steel Supply Chain Solutions annex talks of upgrading DRI from 66 to 69% (p 18); shows recent growth in DRI production vs total steel production (p 19) - not spectacular, if I read it right; and where additional DRI growth is expected (p 20).....globally.

The latter has 'the usual suspects' for M East (including the Aramco- BaoSteel- PIF plant , status 'TBD'); doesn't include the recently announced Jinnan Steel project in Oman with Vale; but DOES include, in China, a Rizhao Steel project (also 'TBD').

Rizhao appears - along with Jinnan - to be part of Shandong Group, see https://en.wikipedia.org/wiki/Shandong_Steel#History , so maybe this is the same project, being reported from the other (end-consumer?) end....

I'd no idea there were so many significant new DRI projects underway, including several receiving government support.

ATB

I respectfully disagree - re Walz's suitability : every VP is carefully chosen by the Pres, for cynical reasons - get rid of me, you get them.

Obama chose Biden; Biden chose Harris (his least challenging rival); she succeeded 'faute de mieux' by default; and she in turn chose Walz.

There's a pattern there.

AFAICS.

From BUR pov, I think the outcome is good news...and certainly 'the lesser of two weevils '.

GLA

Online FT :

China to issue first dollar bond in three years in Saudi Arabia

Choice of the kingdom highlights deepening financial ties between the two countries

.."Beijing has traditionally issued US dollar bonds in Hong Kong. The choice of Saudi Arabia for this new issuance is symbolic of the deepening financial ties between the two countries.

Saudi crown prince Mohammed bin Salman wants Chinese investment to buttress his so-called Vision 2030 modernisation drive, designed to reduce its dependence on oil and project it on to the global stage.

The country is increasingly turning to its own international dollar bond sales to bankroll massive so-called “giga-projects”, and has been one of the biggest issuers in emerging markets this year.

China meanwhile has sought to secure major Saudi construction contracts after a property market collapse at home, while a Saudi solar boom has attracted Chinese companies that make panels and batteries...."

Interesting time for the announcement - US Election day...

GLA

Hat tip to djderry for this little bit of extra 'colour'

.."Of course the hard yards were done by Burford,winning the original award/ decision.They sold on the award to the Titan Consortium for a little over $100 million,if I remember correctly,investing the proceeds in further cases and diversifying the overall portfolio..."

GLA