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LONDON — As the global auto sector accelerates production of electric cars, one British company is hoping to cash in from mining lithium needed to make rechargeable batteries that power the vehicles.

It is five years since former investment banker Jeremy Wrathall launched Cornish Lithium, a company operating in Cornwall, southwest England, which recently hosted the G-7 summit.

And while it may be another four years until it begins commercial production of the metal, Wrathall is optimistic that his punt will pay dividends.

"In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand and I started to think about lithium," he told AFP in an interview.

"A friend of mine mentioned lithium being identified in Cornwall and I just wondered if that was a sort of an unrecognised thing in the UK."

In fact lithium was discovered in Cornwall in 1864, while the area is known for its historic copper and tin mining, which dates back 4,000 years and ended at the turn of the century.

"Of course I would like to revive mining in Cornwall but this a commercial project," insisted Wrathall.

"It's not a mission that drives me to the point to be emotional or romantic."

 'Encouraging results' 

Cornish Lithium is at a testing stage to see if the metal can be produced commercially."Initial results are encouraging. I'm excited about it," Wrathall said, whose company has revived a former mine situated away from the area's picturesque villages and beaches.

The mining firm is looking to extract enough lithium from hot water underground to meet at least a "significant proportion" of UK demand, while at the same time respecting the environment

It is mulling the capture of heat from underground to generate clean power, or geothermal energy, which can be used to extract the lithium.

Wrathall explained that Cornwall benefitted from having very clean water.

"It has a lot of lithium and very little of anything else," he explained.

"When you're looking for needles in a haystack you want as little hay as possible and more needle and that's what we've got."


Long journey 

The project has been far from easy, from securing drilling rights from landowners to finding the technology to bring water containing the lithium to the surface.

And the company is facing competition from British Lithium, which is looking to extract the metal from Cornwall's granite.

British demand for lithium is set to reach 75,000 tonnes by 2035, five years ahead of a UK ban on the sale of high-polluting diesel and petrol vehicles.

Lithium is mined mostly in Australia and South America, while China controls the supply chain.

While automakers insist on the environmental benefits of electric vehicles, the bulk of current lithium extraction relies on power from polluting fossil fuels.

In Europe, projects are ongoing for cleaner extraction of the metal in France and Germany.

"It's vitally important that we do get this technology otherwise Europe has got no lithium supply," Wrathall insisted.

It comes as car giants Nissan and Renault recently announced plans for huge plants in England and France to make electric batteries.

The European Commission meanwhile wants to end the sale of new petrol and diesel cars by 2035, under a massive plan to fight climate change unveiled last week.

"Europe from a strategic point of view should be looking at securing its own supply of lithium," said Alex Keynes at Brussels-based lobby group Transport & Environment.

"Our view is that medium-to-long term the majority of materials including lithium should come from efficient and clean recycling," he said.

VIENNA — The world's leading oil producers agreed on Sunday to continue to modestly boost output from August reaching a compromise after the United Arab Emirates blocked a deal earlier this month.

An OPEC+ meeting decided to raise output by 400,000 barrels per day (bpd) each month from August to help fuel a global economic recovery as the pandemic eases, the group's Vienna-based secretariat said in a media statement.

The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April next year to the end of 2022.

Earlier in July, negotiations of OPEC+ members on easing production cuts became deadlocked due to a row between the world's largest oil exporter Saudi Arabia and neighbour the United Arab Emirates.

Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand.

The aim is to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic.

 'Consensus building' 

In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust", leading to a stalemate.

But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less.

Saudi Energy Minister Prince Abdulaziz Bin Salman, who chairs the OPEC group, declined to say how the new quotas were decided and beneficiaries chosen, saying it had been part of "consensus building".

Russian Deputy Prime Minister Alexander Novak told public television channel Rossia 24 that the meeting confirmed "our desire to be constructive and to find a consensus".

"The pandemic is not yet overcome, but we are seeing that thanks to vaccination all over the world, demand for our production is recovering as is the use of cars and air planes," he said.

"It is therefore very important for us to fulfil our responsibilities and allow a recovery of the world economy."


'Flurry of talks' 

Observers had expected a deal. 

"A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&P Global Platts, which specialises in coverage of the energy industry, ahead of the meeting, which lasted just about one hour.

Oil prices — which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains.

OPEC+ then decided to withdraw 9.7 million bpd from the market and to gradually restore supplies by the end of April 2022 -- a deadline that has now been extended.

Benchmark oil prices rebounded as a result and have reached two-and-a-half-year highs. The main international oil contracts have been trading around $75 per barrel.

Economic rivalry was at the heart of the feud between OPEC members as the Gulf states try to cash in on their vast oil reserves as they face the beginning of the end of the oil era.

Disagreements between Saudi Arabia and UAE -- once inseparable allies -- are usually resolved behind palace walls and rarely spill into the open.

Ministers from OPEC+ countries have gathered frequently since the spread of the new coronavirus to assess the market with the next meeting scheduled for September 1, according to Sunday's statement.

MILAN — Tough talks between Italy and the European Commission on a plan to replace struggling Alitalia have laid the groundwork for a new, streamlined flag carrier, the economy ministry said on Thursday.

Italia Trasporto Aereo (ITA) "will be fully operational" as of October 15, after Rome reached a "constructive and balanced solution" with Brussels, it said in a statement.

The new airline had initially been expected to launch in August, during the peak tourism season, but talks with the Commission dragged on even after a preliminary deal was reached in May. 

The Commission, charged with policing state aid in the EU, is examining 1.3 billion euros ($1.5 billion) in state funds provided to Alitalia in 2017 and 2019.

On Thursday, the Commission said only that it had taken note of the Italian announcement and reiterated that it had "reached a common understanding on the key parameters to ensure economic discontinuity between ITA and Alitalia.

"The Commission remains in close contact with the Italian authorities to ensure that the launch of ITA as a new and viable market player is in line with EU state aid rules," a statement added.

The Commission has already insisted that the new airline mark a rupture with Alitalia, and not only by changing the name.

It noted that "legal investigations into past state aid to Alitalia continue".

But the Italian ministry said that the accord reached with Brussels will "guarantee the discontinuity necessary to comply with European regulations", and open the way for a planned capital hike for ITA.

It did not provide any figures, but a government source said that the first stage of recapitalisation would be on the order of 700 million euros. 

ITA is to have a fleet half the size of Alitalia to begin with, and its ground operations and maintenance service would be spun off and airport slots ceded.

But the new airline could still be a majority shareholder alongside other investors in the company that takes over the ground operations, and hold a minority stake in the future maintenance group.

As for coveted airport slots that allow airlines to take off and land at a given destination, ITA would retain 85 per cent of those held by Alitalia at Milan's Linate airport, and 43 per cent of those at Rome Fiumicino, according to the draft industrial plan.

Job losses 

"The foundation has been laid for a new, solid national carrier that is sustainable and independent, able to operate without interruption and with solid perspectives for growth and development," the ministry statement said.

The agreement with the Commission is expected to result in job losses, however.

More than 11,000 people work for Alitalia, including crew, maintenance and ground staff.

"It's unacceptable," a joint statement released by the Cgil, Cisl, Uiltrasporti and Ugl unions said.

They denounced "the carving up" of Alitalia, and described the plan as "weak" with "no prospects for the development of long-haul services".

Economic Development Minister Giancarlo Giorgetti said ITA would hire around 2,800 people in 2021 and another 5,750 in 2022.

Alitalia, whose fragile financial condition worsened during the coronavirus pandemic, had already been placed under state administration in 2017.

Italy failed to find an outside investor willing to take it over.

LONDON — British luxury fashion house Burberry, famed for its handbags and trenchcoats, revealed on Friday that sales have returned to pre-pandemic levels as young customers embraced the brand.

Sales rose by one per cent in the group's first quarter or three months to late June, compared with the equivalent period in 2019 before the pandemic erupted, Burberry said in a statement.

First-quarter sales surged by 90 per cent to £479 million ($663 million, 561 million euros), from the same time in 2020 when COVID lockdowns shut stores.

Burberry enjoyed a strong performance in the Americas and Asia-Pacific regions, helping to offset deflated sales in Europe as tourists stayed away.

"We have made an excellent start to the new fiscal year," said Chief Executive Marco Gobbetti, who recently announced plans to depart the group.

"Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand," he added in the statement.

Investors however gave the earnings update a thumbs down.

Burberry shares lost four per cent to £19.87 in late morning deals on London's FTSE 100 index, which was up by around half-a-per cent overall.

"Burberry has bolted out of the blocks in its new financial year, rising to pre-pandemic sales levels virtually across the board," said Interactive Investor analyst Richard Hunter.

"The virtual disappearance of tourism is having a lingering effect on continental Europe in particular, however, where sales remain down by 38 per cent compared to pre-pandemic."

Gobbetti steps down at the end of 2021 after nearly five years as Burberry's CEO, and is to run the Italian fashion house Salvatore Ferragamo.

No successor has been announced, so far.

NEWYORK — Global stocks mostly fell on Friday as worries about rising COVID-19 cases and their effect on global growth weighed on sentiment, pushing Wall Street into the red for the week.

After data showed an unexpected rise in US retail sales, Wall Street pushed higher at the open. But markets soon tumbled into the red and losses grew as the day progressed.

 Analysts pointed to profit taking as a factor in Friday's session and throughout the week following records earlier in the month. 

Investors are "continuing to trim winning positions" as they await more clarity on the course of the economy, said Briefing.com analyst Patrick O'Hare.

The broad-based S&P 500 ended down 0.8 per cent at 4,327.16, taking its weekly losses to around 1 per cent.

The highly-contagious Delta variant has led to surging infection rates in many parts of the world, leading authorities to reimpose certain restrictions.

"COVID-19 concerns still linger and the economic outlook is not as bright as it was just a few weeks ago," said market analyst Edward Moya at trading platform Oanda.

Major European bourses retreated, along with Tokyo, which closed one per cent lower as investors worried over rising COVID-19 infections and the Bank of Japan trimmed its economic growth forecast for the current fiscal year.

Hong Kong's leading index was flat as late profit-taking wiped out earlier gains ahead of a US warning about doing business in the territory.

In a long-awaited advisory that has already been denounced by China, the United States warned its business community of "growing risks" of operating in Hong Kong due to China's clampdown.

The advisory acknowledged that Hong Kong, a former British colony handed back to China in 1997, "retains many economic distinctions" from the mainland, including stronger protections of intellectual property.

But Washington pointed to a declining climate under a national security law enacted last year, including the arrest of one US citizen — John Clancey, a prominent human rights lawyer.

Shanghai closed 0.7 per cent lower while Seoul, Taipei, Kuala Lumpur and Bangkok also retreated. Wellington was flat while Sydney, Singapore, and Jakarta ticked higher.

WASHINGTON — General Motors on Wednesday warned owners of its Chevrolet Bolt to park the electric vehicle outside and not leave them plugged in overnight after two of the cars caught fire.

The incidents involved vehicles that had been fixed following a November recall of nearly 51,000 Bolts in the United States due to a fire risk, the automaker said.

"Out of an abundance of caution, we are asking owners of 2017-2019 Chevrolet Bolt EVs who were part of the recall population to park their vehicles outdoors immediately after charging and not leave their vehicles charging overnight while we investigate these incidents," GM said in a statement.

"At GM, safety is our highest priority, and we are moving as quickly as we can to investigate this issue."

According to news reports, one of the recent fires occurred in Vermont and another in New Jersey.

The National Highway Traffic Safety Administration opened an investigation in October into the fire hazard involving the high-voltage battery pack underneath the rear seat of the Bolt, after confirming five incidents where cars ignited even when turned off.

The agency at the time told owners that "the safest place to park them is outside and away from homes."

GENEVA — The World Trade Organisation (WTO) kicked off a ministerial meeting on Thursday aimed at breathing life into drawn-out negotiations towards banning subsidies that favour overfishing, but numerous sticking points remain.

Before the meeting, WTO chief Ngozi Okonjo-Iweala voiced cautious optimism that trade ministers from the organisation's 164 member states could finally move towards clinching a "historic" agreement after 20 years of negotiations.

"While no one expects a miracle, the meeting represents a golden opportunity to bring the negotiations within striking distance of a deal," she said in an editorial published on Wednesday in Project Syndicate.

"A failure to do so would jeopardise the ocean's biodiversity and the sustainability of the fish stocks on which so many depend for food and income."

The talks aim to ban subsidies that contribute to illegal and unregulated fishing, as well as to overfishing, threatening the sustainability of fish stocks and the industry.

While fishing should in theory be held in check by the environment, with low fish stocks pushing up costs, subsidies can keep unprofitable fleets at sea.

It is widely agreed that action is needed to protect a crucial resource that millions of people depend on for their livelihoods.

In 2017, the Food and Agriculture Organisation estimated that one third of global fish stocks were overfished.

Global fisheries subsidies are meanwhile estimated at between $14 billion and $54 billion a year, according to the WTO.

But two decades of negotiations have stumbled over a range of issues, including a UN demand that developing countries and the poorest nations receive special treatment.

After missing the last UN deadline to reach an agreement by December 2020, talks have intensified in recent months, however.

Okonjo-Iweala, who took the reins of the global trade body in March, has made clinching the long-awaited fisheries deal by the end of this year a priority.

Thursday's meeting, which is taking place virtually due to Covid restrictions, is focusing on a draft text presented in May by Colombian ambassador Santiago Wills, who chairs the WTO fisheries subsidies negotiations.

Okonjo-Iweala voiced optimism that "marathon discussions" on the text, which according to Wills proposes "compromise language" in a range of areas, would succeed. 

"We are on the cusp of forging an agreement at the WTO that is historic in more ways than one," she said, stressing that a deal would also show that "members can come together and act on issues of the global commons." 

Reaching any kind of an agreement at the WTO can be hard, because all decisions require a consensus among all member states.

But observers said there had been a clear boost in momentum towards finding a deal.

"We have never had more political attention on the issue, (nor) the degree of political attention from a director general, and the degree of commitment from WTO members to really advanced this text," Alice Tipping of the International Institute for Sustainable Development told reporters in Geneva. 

Special treatment? 

But a number of sticking points remain and NGOs warn against rushing to the finish line at any cost.

"It's critical that WTO members do not sacrifice environmental outcomes for the sake of speed when negotiating a fisheries subsidies agreement," Isabel Jarrett of The Pew Charitable Trusts told AFP.

One of the main stumbling blocks has been a UN demand that developing countries and the poorest nations receive so-called special and differential treatment, or SDT.

While special treatment for the poorest countries is widely accepted, demands from some self-identified developing countries to be exempt from subsidy constraints has proved difficult to swallow.

Many of the major fishing nations are considered developing countries by WTO, including China, which has one of the world's biggest fishing fleets.

An EU official told reporters this week that a declaration from China that it was prepared to assume "full commitments without claiming SDT" would be "very helpful" to the talks.

There is also disagreement over how broad the fisheries deal should be.

There appears to be consensus around excluding fish-farming and continental fishing from subsidy constraints.

But some developing countries are calling for fuel subsidies, including through tax deduction schemes like those widely used in the EU, to be included in the deal -- something the bloc flatly rejects.

WASHINGTON — US inflation will remain "elevated" in coming months but will decline once supply bottlenecks and other temporary issues are resolved, Federal Reserve Chair Powell said on Wednesday.

But the world's largest economy still has "a long way to go" to return to full employment following the COVID-19 pandemic, Powell said in his semi-annual testimony to Congress. 

The Fed "will ensure that monetary policy will continue to deliver powerful support to the economy until the recovery is complete," he said.

Inflation has surged in recent months, with the annual consumer price index hitting 5.4 per cent in June, the highest since August 2008.

But Powell and other Fed officials have stuck to their argument that the high rate has been driven mostly by temporary issues related to the struggles to reopen the economy following the pandemic shutdowns and is not a reason to pull back on stimulus efforts.

Many private economists agree, but Powell is likely to face tough questions from members of the House Financial Services Committee in the hearing that begins at 1600 GMT. He is due to appear again Thursday before the Senate Banking Committee.

"Inflation has increased notably and will likely remain elevated in coming months before moderating," Powell said in his prepared testimony.

He cited the impact of supply issues including a global semiconductor shortage that has hindered auto production, and said those factors "should partially reverse as the effects of the bottlenecks unwind."

The Fed cut the benchmark lending rate to zero right at the start of the pandemic and implemented a massive bond-buying program to provide liquidity to the economy during the crisis.

Central bankers have pledged to maintain the stimulus until inflation holds above the 2 per cent goal and the labour market has recovered.

But while job gains are expected to continue, Powell said "reaching the standard of 'substantial further progress' is still a ways off."

Fed officials have begun to discuss when they will start to taper the $120 billion a month in asset purchases, and Powell again pledged to give advance notice before making any changes.