The Oil Sands, the world’s second-largest proven reserves after Saudi Arabia, hold out the promise of energy security for the United States and economic security for Canada. But environmentalists fear the destructive, energy intensive process of extracting the oil will carry direct consequences for the planet. Despite the doubts, new oil sands projects are again springing up after the financial crisis halted development. How will oil companies balance the quest for more oil with environmental concerns? Mar. 22-23 we’ll put those questions to the oil companies, environmental groups and government officals at the first Reuters Canadian Oil Sands Summit in Calgary.
Food and agriculture companies, having weathered the global economic meltdown, are now facing the prospects that renewed growth will spur renewed inflation.
With costs poised to rise for commodities like wheat and already high for items like sugar and cocoa, packaged foods makers face the task of trying to preserve profits at a time while retailers and consumers are balking at price increases.
Trade battles over U.S. meat and regulatory issues like a tax on soft drinks and push for more accurate disclosure of calories and fat on restaurant boards and food package are also concerns for the industry.
For UC RUSAL, one simple act is crucial to reducing costs.
Bonuses for managers at the world’s largest aluminium company
depend on the company’s 75,000 workers heeding the message.
“We have to introduce a new culture: if you leave the
office, turn off the lights,” Artyom Volynets, UC RUSAL’s deputy
chief executive for strategy, said at Reuters Global Mining and
Steel Summit on Monday.
“We have 16 smelters, each with their own headquarters and
offices. We employ 75,000 people. If each one of them is
switching off the lights at the end of their shift, that would
UC RUSAL embarked on a major drive to slash production costs
last year as part of an ultimately successful attempt to secure
Russia’s largest ever private sector debt restructuring.
Easy access to Siberian hydroelectric power, compared with
relatively high-cost coal used to power smelters in other parts
of the world, affords UC RUSAL a distinct cost advantage when
making aluminium used in transport, construction and packaging.
In the first half of 2009, it cost UC RUSAL an average
$1,400 to produce a tonne of aluminium. The metal is now selling
at above $2,200 a tonne.
UC RUSAL has cut costs by sourcing cheaper raw materials of
better quality and improving throughput rates at its smelters in
Siberia, which account for about 80 percent of its total output.
But cheap power in Siberia had also led to complacency.
“Our smelters are located in probably the only remaining
major energy-long region in the world. Therefore, if you buy
power at 2 cents per kilowatt, you don’t really care how much
you spend,” Volynets said.
“For my colleagues on the operational side of the business,
their key performance indicators are 100 percent tied to cost
improvements,” he said. “They will not be compensated if these
improvements are not implemented.”
(Writing by Robin Paxton in Moscow)
This time last year, steel mills and base metal miners were in an unprecedented slump, with metal prices bouncing off multi-year lows amid steep economic downturn. Since then, the world economy has turned upwards and demand for metal is resurging. While many analysts have cited economic recovery for the price gains, they add that demand signals show only slow, choppy growth. Whether metal prices have gained as investors search for a place to put excess liquidity or are based in solid supply/demand fundamentals remains a question. Get exclusive insight into the sector from the Reuters Global Mining and Steel Summit taking place in New York, London and Sydney on Mar 8-11.
from Funds Hub:
This week's Reuters Hedge Fund and Private Equity Summit gave us some new insights into how hedge funds are betting on Greece's debt crisis and their attitude to talk that politicians and regulators may clamp down on their activities.
Some of the world’s leading names in the hedge funds and private equity industries are visiting the Reuters bureaus in New York, London and Hong Kong this week to discuss the outlook for the sector in a series of exclusives interviews as part of the 2010 Reuters Hedge Funds and Private Equity Summit.
Are flying coach and staying at budget hotels the “new normal” for businesspeople who travel for work? If so, what does it mean for airlines, hotels and casinos still trying to recover from the economic downturn? Chris Woronka, Senior Gaming, Lodging and Leisure Analyst at Deutsche Bank Securities shares his thoughts with us on what’s in store for the Travel and Leisure Industry in 2010. Will the industry once again be flying high? Or, will the prospects for a better year ahead get grounded?
MANAMA, Feb 18 (Reuters) – Dubai’s debt fiasco and real estate bubble bust pushes investors to look out for alternative assets underlying Islamic finance products – could renewable energy provide a way-out?