COMPANY NEWS IN BRIEF

Rio Tinto posts record earningsAustralia-based mining giant Rio Tinto on Wednesday reported record earnings of US$21.4 billion last year, on the back of soaring iron ore prices and solid demand from China.Earnings were up 72 percent versus 2020, reaching the highest levels in Rio's 149-year history, as iron ore earnings roughly doubled.Rio Tinto chief executive Jakob Stausholm cited "significant price strength for our major commodities," as he announced a record dividend to shareholders.Australia is the world's largest iron ore exporter, and the product has been a mainstay of the country's economy for decades.Despite political tensions with Beijing, Australian producers continue to sell vast quantities of the material that is turned to steel and ends up in Chinese-made cars, fridges and buildings.China accounted for more than 57 percent of Rio's sales for the year, rising from US$26 billion to US$36 billion year-on-year. -AFPNigeria sues JP Morgan A London court on Wednesday began to hear a lawsuit launched by Nigeria against US bank JP Morgan Chase, claiming more than US$1.7 billion for its role in a disputed 2011 oilfield deal.The civil suit filed in the English courts in 2017 relates to the purchase by energy majors Shell and Eni of the offshore OPL 245 oilfield in Nigeria, which is also at the centre of ongoing legal action in Milan.In the court documents seen by Reuters, Nigeria alleges JP Morgan was "grossly negligent" in its decision to transfer funds paid by the energy majors into an escrow account to a company controlled by the country’s former oil minister Dan Etete instead of into government coffers.The damages sought include cash sent to Etete's company Malabu Oil and Gas, around US$875 million paid in three instalments, plus interest, taking the total to over US$1.7 billion. The Nigerian government at the time asked JP Morgan to make these transfers as part of the oilfield sale, court documents show."JP Morgan is confident that it acted appropriately in making these payments, which were authorised by senior representatives of the Nigerian government, and only processed following extensive engagement with law enforcement and other agencies and courts," a spokesman for the bank said. -ReutersNestle to double investments Nestle said on Tuesday it will almost double its investments in Brazil in 2022 from a year earlier as it builds a new pet food factory and looks to expand its overall industrial capacity in the country.The annual investments are expected to reach more than 1.8 billion reais (US$355.59 million), up from 939 million reais in 2021, Nestle told Reuters, adding that its new Purina plant in the southern state of Santa Catarina, which is already under construction, will get about 40% of the total amount.Some 1.1 billion reais will be invested in Nestle's industrial operations in the South American country, including new technologies, logistics and sustainability initiatives.Of that, 90% is set to go to new lines as it aims to boost output capacity, Nestle said, while also planning to invest in energy to shift part of its power generation in Brazil to biomass from gas.Nestle's coffee plants - seen as a priority for the company in Brazil, the world's largest producer and exporter of the commodity - will get 160 million reais this year. Such an amount does not include investments in sales and distribution channels, it said. -ReutersVirgin Galactic posts smaller lossSpace tourism company Virgin Galactic Holdings Inc on Tuesday posted a smaller-than-expected quarterly loss and said its cash position had improved, sending its shares 5% higher in extended trading.The company founded by billionaire Richard Branson held about US$931 million in cash as of December 31, compared with US$679 million a year earlier.The figure excludes the US$425 million it raised last month through a debt offering to help fund the launch of its commercial service, which is set to start later this year.Virgin Galactic earlier this month re-opened ticket sales to the public for space travel, setting prices at US$450,000 per person with an initial deposit of US$150 000.The company has sharpened its focus on its Delta class of spaceships, engaging with suppliers to ramp up production of the craft that is expected to make up the bulk of its flight capacity and fly once a week.It posted a loss of 31 cents per share in the fourth quarter to December 31, compared with estimates of a 35 cents per share loss, according to Refinitiv IBES data. -ReutersTesla hit by another lawsuitA former Tesla construction manager has filed a lawsuit against the electric car company alleging he was fired for reporting widespread safety violations and race discrimination at Tesla's factories.In the lawsuit filed with Alameda County Superior Court on Friday, Marc Cage, an African American, claimed to have reported safety violations that risked massive explosions at Tesla's battery factory in Nevada and systematic failures by the company to disclose serious on-the-job injuries."Tesla’s commitments to unrealistic production goals and frantic efforts to ramp up its production, often to make good on rash promises, overrode any commitment to employee safety," the complaint says.He also alleged that Tesla employees, with the full knowledge of the company's management, denigrated and harassed him on the basis of his race."Virtually every restroom in Tesla’s Fremont facility contained writings or carvings of racist symbols and slurs, including swastikas and prominent displays of the n-word," Cage said in his complaint. -Reuters

COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-15

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COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-15

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