Australian magnate Rinehart takes stake in MP Materials

Reuters | April 9, 2024 |

Australian mining magnate Gina Rinehart. 

(Image courtesy of Sponto News | YouTube)

US rare-earths producer MP Materials said Australian billionaire Gina Rinehart’s mining firm had taken a 5.3% stake in the company, expanding her investments in the mineral ore sector.


In a regulatory filing last week, the Nevada-based miner said Hancock Prospecting, owned by Australia’s richest person Rinehart, holds about 8.8 million shares of MP Materials.


MP Materials is the second-biggest producer of rare earths outside China after Australia’s Lynas Rare Earths. Lynas ended talks with MP Materials over a potential merger in February.

Hancock declined to comment on Wednesday.

The iron ore miner has been building stakes in critical minerals projects, including rare earths. Hancock’s investments include a 6.17% stake in Brazilian Rare Earths and a 9.14% holdings in Arafura Rare Earths, according to LSEG data.

(By Melanie Burton and Roshia Sabu; Editing by Maju Samuel and Sherry Jacob-Phillips)

Read More: MP Materials awarded $58.5 million tax credit for Texas rare earth magnet factory

Gina Rinehart-backed lithium hopeful surges after demo batch

Bloomberg News | April 11, 2024 | 

Gina Rinehart is Australia’s richest person. (Image: Gina Rinehart website)

Australia-listed lithium developer Vulcan Energy Resources Ltd. has gained nearly 40% this week after announcing its first viable output using direct-extraction technology, an emerging technique for producing the battery material.


The firm’s demonstration plant in Landau, Germany, delivered a batch of lithium chloride in line with the quality it eventually plans to make commercially, Vulcan said in a statement on Thursday. The firm backed by Australia’s richest woman Gina Rinehart has agreements to supply European carmakers including Stellantis, Renault SA, and Volkswagen AG.

The firm’s shares jumped about 13% on Wednesday and closed 24% higher on Thursday.

Direct lithium extraction, or DLE, is seen as a promising production technique because it radically reduces the time needed to convert lithium brine into a form suitable for battery manufacturing. But it has faced widespread skepticism, and is still relatively untested at commercial scale.

“We see this as a major step forward for the company, a validation of Vulcan’s extensive work to date and of our view that DLE has a role to play in the lithium supply chain,” analysts from Cannacord Genuity Ltd. said in an emailed note.

Vulcan is planning to start market-ready production in 2026, executive chairman Francis Wedin said in an email interview. The company is still seeking to secure funding for that first phase, which will make 24,000 tons of lithium hydroxide annually — enough to supply batteries for half a million electric vehicles.

“Construction will take just over two years, and the clock starts ticking once financing is complete,” Wedin said. The company is in talks with potential strategic investors, including oil and gas and automotive companies, to buy equity, Vulcan said..

Vulcan said the demo production in Germany was the first lithium chloride sourced and produced within Europe. The project will use geothermal energy to power its plant, reducing carbon emissions, it said.

(By Paul-Alain Hunt)

Tianqi takes another shot at probing SQM-Codelco lithium deal

Bloomberg News | April 10, 2024

Image of Tianqi delegation’s visit to Chile in late 2023. Credit: Tianqi Lithium

Chile’s SQM called another investors meeting at the request of its second-largest shareholder, Tianqi Lithium Corp., which seeks greater clarity over a proposed deal with copper giant Codelco.


The board of SQM, the world’s No. 2 lithium supplier, agreed to summon an extraordinary shareholder meeting for April 24. It will be the second such meeting in as many months, with Tianqi pushing for a vote on any tie-up with state-owned Codelco. While SQM management will provide an update on negotiations and answer questions, the Santiago-based firm reiterated in a statement Wednesday that the deal only requires board approval.


It’s the latest twist in tensions between SQM and its Chinese shareholder after representatives of the two companies questioned each other’s real motivations in the matter. At stake is a deal that would allow SQM to ramp up production of the key ingredient in electric vehicle batteries. If it’s scrapped, SQM may have to wind down mining operations when its current contract expires in 2030.

Tianqi, which has endured restrictions to SQM’s sensitive information since buying its stake for $4 billion in 2018, has been frustrated by what it says is insufficient information on the deal.

Under a framework accord announced late last year, SQM will hand over a majority stake in its brine assets to Codelco in exchange for extending operations for three more decades. SQM’s top shareholder is Julio Ponce, the former son-in-law of dictator Augusto Pinochet.

(By James Attwood)

 

Sibanye Gold Restructuring to Put 4,000 More Jobs at Risk

William Clowes, Bloomberg News

A resident passes a conveyor of a Sibanye Stillwater Ltd. mine in Rustenburg, South Africa.

, Bloomberg

(Bloomberg) -- Sibanye Stillwater Ltd. said it will enter talks with labor unions about a proposed restructuring at some of its South African gold operations that could impact more than 4,000 people.

The announcement comes after the Johannesburg-listed miner already shed a similar number of workers across its gold and platinum-group metals assets since late last year. The latest talks about job losses relate to a loss-making shaft at the Beatrix mine and a plant at the Kloof project, Sibanye said in a statement Thursday.

As recently as February, Sibanye finalized the cutting of 2,600 roles within the company’s South African PGM operations, as the firm responded to a sharp slump in the prices of platinum, palladium and rhodium since the start of last year. In December, the company announced it had trimmed almost 1,500 jobs after restructuring a shaft at the Kloof mine.  

Sibanye – one of the biggest employers in South Africa – has diversified into PGMs and battery metals as it shifted away from its original dependence on three aging gold mines previously run by Gold Fields Ltd. The company reported a $2 billion loss last year, after taking a large impairment on the firm’s Stillwater palladium project in the US.

The latest measures could affect 3,107 employees and 915 contractors, according to the statement. “The objective of the consultation process is to, among others, consider alternative measures to minimise job losses while ensuring the long-term sustainability of the SA operations,” Sibanye said.

The prospect of additional job cuts comes as South Africa’s ruling African National Congress – battling high levels of unemployment – gears up for elections next month. Sibanye’s peers Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. either have pared back their workforces or are discussing doing so.

The shaft at the Beatrix project has been “unable to deliver planned production,” while the Kloof plant has not been receiving enough material following last year’s closure of a shaft at the mine, Sibanye said in the statement.

(Updates with details on Sibanye, consultations from third paragraph)

©2024 Bloomberg L.P.

Mexico’s Supreme Court could strike down president’s mining reforms next week

Henry Lazenby | April 11, 2024 |

MPs from the ruling Morena party advocating for the overhaul of Mexico’s mining laws. (Image by the Chamber of Deputies, YouTube.)

Once a popular destination for Canadian explorers, Mexico’s recent mining reforms are driving away investment — even as a looming Supreme Court decision is likely to toss out the new law, deemed by industry sources as unworkable.


The reforms introduced last May by President Andrés Manuel Lopez Obrador (known by his initials as AMLO), require pre-consultation with communities before exploration, impact studies and cash bonds in case of damage that junior explorers may find difficult to raise. Authorities can cancel exploration concessions after two years if no work is completed and critics say water allowances have become harder to get. AMLO has also nationalized the country’s still-developing lithium sector and proposed a ban on open pit mining.

“If you plot a graph of the discoveries and production of gold and silver in Mexico, it starts a very rapid upward climb year on year from 1992, when they opened up exploration to foreign companies. And now, what you’re seeing is a cliff,” the chief executive of a mid-tier silver mining company operating in the country told The Northern Miner. “And we’re going over the cliff because no one’s doing exploration. You don’t have future mines if you don’t do exploration.”

Canadian companies accounted for up to $8 billion in exploration spending and 70% of foreign investment in Mexico’s mining sector between 2012 and 2022, according to figures from the country’s mining chamber, Camimex. They’re eyeing next week’s Supreme Court ruling like a traffic light for project exploration and development.

They’ve already been hard hit by AMLO’s mining reforms, Exploration Insights mining analyst Joe Mazumdarsaid.

“People with exploration assets in Mexico have a hard time getting funded,” he told The Northern Miner.

Mexico’s mining production was valued at $16.7 billion in 2021, according to the U.S. Department of Commerce. Camimex says the new law will cost the country $9 billion in investment and 420,000 jobs.

Mexico mining law expert Santiago Suarez Sevilla says over 500 constitutional challenges (Amparos) have been filed against the law, with the Supreme Court recently issuing new guidance walking back some of the reforms and, in some cases, grandfathering those filing an Amparo from enforcement of the new rules.

AMLO’s term ends in November, but his hand-picked successor Claudia Sheinbaum leads the polls ahead of an election scheduled for June. Sources were divided on what a win for her could mean for miners.

Given the regulatory uncertainty, several companies and investors The Northern Miner spoke to declined on-the-record interviews. That uncertainty affects not just individual companies but the economic ties between Mexico and Canada.

One senior executive of a gold-silver miner in Mexico says the political noise created by AMLO’s mining and other reforms has overshadowed traditional investment concerns in Mexico, such as the influence of drug cartels and violence.

Mining reforms

Mexico’s mining slowdown has been in the making for some time. Camimex says there has been a 51% fall in exploration investment to $72 million in 2022 from $1.2 billion in 2012 since fiscal reforms in 2013 removed tax incentives.

Since taking power in 2018, the AMLO administration has not granted any new concessions. And about a year ago, his Morena party shook miners when senators approved a new mining law in an accelerated late-night process that excluded opposition legislators.

Companies complain that the reforms have created disincentives for mineral exploration, introducing exploration and water resource management plans that amount to burdensome red tape, time, and money.

Perhaps the most controversial aspect for explorers is the stipulation that only the state can conduct greenfields exploration in partnership with the proponent. However, once a deposit has been proven, an open bidding process is still required, and the original proponent must match the highest bid to retain the concession.

That means there’s no security of tenure for exploration assets.

AMLO threw fuel on the fire in February, pushing a new constitutional amendment banning open-pit mining.

Such a decree could crush the sector since open pit mines generate more than 60% of Mexico’s mined production, Mazumdar says.

Top producers such as Grupo Mexico’s Buenavista del Cobre, Newmont’s (TSX: NGT; NYSE: NEM) Peñasquito, two of Fresnillo’s (LSE: FRES) gold-silver mines, and several others owned by Industrias Peñoles are open pit operations.

Mazumdar points out that the economics for many projects such as San Nicolas, a joint venture between Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) and Agnico Eagle Mines (TSX: AEM; NYSE: AEM), are based on an open pit scenario. Agnico paid $580 million for half of the project last year.

GoGold Resources (TSX: GGD; US-OTC: GLGDF) has adapted its Los Ricos South gold-silver project to transition from a wholly open pit plan to underground mining initially. Other projects may never be developed if the open pit ban is implemented.

There are certain ironies to AMLO’s mining reforms. The apparent ban on open pit mines contrasts with the nationalization of lithium mining in Mexico early last year. Hard rock lithium mining is usually best suited for open pit, bulk mining methods.

One mining executive operating in Mexico noted the contradiction between populist AMLO’s advocacy for Indigenous and remote communities and his actions that undermine the mining sector.

Mines in Mexico, often located in remote areas, contribute to local development by building schools and hospitals, and providing job training and economic opportunities. Yet, AMLO’s policies are essentially “cutting the hand that feeds” the very people he claims to support.

Majority to pass

Law expert Sevilla points out that AMLO’s proposed constitutional reforms need the support of two-thirds of Congress for approval. The Morena party and its coalition hold 273 of the 334 votes required for a qualified majority in the 500-seat Chamber of Deputies. In the 128-seat Senate, they have secured 71 of the needed 84 votes.

“Following this trend, we believe it will be very difficult for Morena to reach the necessary majority to approve constitutional changes in this and the next period,” Sevilla said. “The new mining law is highly unlikely to survive a challenge of unconstitutionality, a fate that open-pit mining also faces.”

In the upcoming election, Claudia Sheinbaum, the candidate for the ruling Morena party and its coalition, Let’s Keep Making History, is competing against Xóchitl Gálvez of the Broad Front for Mexico coalition.

Sources expect Sheinbaum to maintain the government’s hardline approach and the status quo. However, several see the potential for her to take a more moderate approach once in power, depending on how strong AMLO’s influence over her remains.

Though chances of forming a government are slim, the opposition is strongly pro-mining.

Camimex says, for its part, it is ready to work with the incoming government come November.

“As a business chamber and representatives of the mining industry in Mexico, we always maintain open channels of dialogue with the authorities with the aim of guiding and providing support in technical matters of public policies,” it said in a statement to The Northern Miner.

“We are currently working with the authorities to build communication bridges that allow them to learn about the best practices that the industry has.”

Protesters agree to lift blockade near Las Bambas copper mine

Reuters | April 11, 2024 | 

Las Bambas copper mine in Peru. (Image by MMG).

Protesters have agreed to lift a road blockade on a key Peruvian transport route near the Andean country’s major Las Bambas copper mine, sources with knowledge on the matter told Reuters on Thursday, after reaching a deal with the miner.


The mine, owned by China’s MMG Ltd, had faced a fresh protest by local communities demanding greater benefits from the copper mine, a major producer in a country that ranks among the world’s top suppliers of the red metal.

Protest leader Robertson Pacheco and a source close to the company did not give details on the deal, but residents from Velille, in Cusco’s Chumbivilcas province, had according to the source asked for an annual sum of 2 million soles ($544,218).

The company had previously offered 1.15 million soles for 2024/25 alongside technical assistance for development projects, the source said – a deal two other communities, one in Cusco and another in the Aprurimac region, had accepted.

Residents in Velille started protesting over a week ago after a meeting with company representatives failed to provide a solution, but as of Thursday, the mine’s production had according to a source not been impacted.

Though the protest had paralyzed the flow of trucks carrying minerals through the country’s so-called “mining corridor” to the coast for export, an alternate route was being used to supply the mine.

Las Bambas has faced frequent stoppages due to protests by poor communities demanding more benefits from the nearby mines. Since launching operations in 2016, the mine counts around 600 days of stoppages.

Last year, the mine nevertheless produced 302,039 metric tons of copper, up from 254,838 tons in 2022, according to government data. It typically supplies around 2% of global copper supplies and is one of the top producers in Peru.

($1 = 3.6750 soles)

(By Marco Aquino and Sarah Morland; Editing by David Gregorio and Stephen Coates)

Alaska sues EPA over Pebble mine prohibitions

Reuters | April 11, 2024 | 

(Image courtesy of Pebble Partnership.)

Alaska sued the US Environmental Protection Agency on Thursday seeking to overturn an agency decision that it said effectively blocked development of one of the world’s largest copper and gold deposits.


The complaint filed in an Anchorage federal court challenges the EPA’s 2023 final determination that prohibited the discharge of mining waste from the so-called Pebble deposit into the state’s Bristol Bay

It comes about a month after a similar lawsuit was filed by the site’s developer, Northern Dynasty Minerals.

The Bristol Bay watershed in southwestern Alaska supports the world’s largest sockeye salmon fishery, provides habitat to birds and mammals and is known for its large mineral resources.

The EPA in reaching its decision said it was concerned that mining waste would degrade the watershed and harm important fishing ecosystems.

The state said the agency’s decision would deny it billions in revenues from taxes and royalties and called the move “a blatant affront to the sovereignty” of the state.

Alaska claimed the EPA’s decision arbitrarily failed to properly consider the costs and benefits of its decision in violation of federal administrative law and exceeded its authority under the federal Clean Water Act. It asked the court to set aside the final determination and declare the EPA violated those laws.

The EPA declined to comment, and Northern Dynasty didn’t immediately respond to a request for comment.

The case is Alaska v. US Environmental Protection Agency, in the US District Court for the District of Alaska, case No. 3:24-cv-00084.

For the state: Attorney General Treg Taylor and Assistant Attorney General Ronald Opsahl of the Alaska Department of Law, and Norman James and Tyler Carlton of Fennemore Craig

For the EPA: Not immediately available

(By Clark Mindock)

Third Indian Shipyard Wins U.S. Navy Approval for Ship Repairs

Cochin Shipyard at peak activity (file image courtesy Cochin Shipyard)

PUBLISHED APR 9, 2024 5:18 PM BY THE MARITIME EXECUTIVE

 

Against a backdrop of deepening U.S.-India defense relations, a third Indian shipyard has struck a deal with the U.S. Navy for repair of its vessels. On April 6, the state-run Cochin Shipyard Limited (CSL) announced that it had signed a Master Shipyard Repair Agreement (MSRA) with the U.S. Navy, which qualifies the yard to repair vessels under the U.S. Navy’s Military Sealift Command.

“The MSRA is a non-financial agreement and is effective from April 5, 2024. CSL has been qualified for entering into the MSRA after a detailed evaluation process and capability assessment by the U.S Navy,” the shipyard said in a regulatory filing.  

Last year, two other Indian shipyards - L&T Kattupalli and Mazagon Dock Shipbuilders - signed a similar vessel repair agreement with the U.S. Navy. These agreements signal U.S. commitment to follow up on its pledge of using Indian repair facilities, reducing the maintenance turnaround time and costs for U.S. naval assets deployed in the Indo-Pacific region. The use of Indian yards also relieves pressure on the U.S. shipbuilding industrial base, which cannot keep up with the Navy’s needs.

Last year during Prime Minister Narendra Modi’s visit to Washington, the Indian government invited the U.S. to evaluate more yards for repair deals. In a joint statement after talks between President Joe Biden and Modi, the two leaders acknowledged India’s emergence as a hub for maintenance and repair.

“Partnerships with Indian shipyards will allow the U.S. Navy to expedite repairs for forward-deployed naval assets. As envisaged in the Defense Industrial Roadmap, both countries agree to work together for the creation of logistic, repair and maintenance infrastructure for aircrafts and vessels in India,” added the statement.  

Besides the U.S, the UK has bolstered its defense ties with India with two Royal Fleet auxiliary ships arriving last month at the L&T Kattupalli shipyard for maintenance. This is the first time the Royal Navy vessels sought maintenance in India, indicating progress in the UK-India 2030 Roadmap, which reflects the two nations’ commitment to a secure Indian Ocean.

 

Northern Ireland Launches New Industry Group for Maritime Companies

Artemis Technologies, the builder of high-tech hydrofoiling workboats, was the founding member (Artemis)

PUBLISHED APR 11, 2024 1:24 PM BY THE MARITIME EXECUTIVE

 

 

UK’s Northern Ireland on Thursday launched a government-backed industry body to bring together maritime and offshore sector companies within the region. The Northern Ireland Maritime & Offshore network, NIMO, is funded by Invest Northern Ireland and hopes to support collaboration and innovation.

“Northern Ireland has a rich maritime heritage, and the sector plays an important role in the Northern Ireland economy . . . Invest NI is pleased to support NIMO which will advance our maritime and offshore sectors while addressing key strategic priorities, including job creation, regional balance and carbon emission reduction,” said Kieran Donoghue, CEO of Invest NI.

NIMO builds on the work of the Belfast Maritime Consortium, which was led by Artemis Technologies, delivering on an investment of $41 million in Northern Ireland by the UK Research and Innovation. The funding was directed towards kick starting a shipbuilding resurgence in the industrial Belfast Harbor.

“As the founding member, Artemis Technologies is immensely proud to see NIMO officially launch. Working at the forefront of maritime innovation, we understand firsthand the importance of partnering and working together to achieve otherwise unattainable goals,” said Dr. Ian Percy, CEO of Artemis Technologies.

NIMO is currently made up of 46 members including Kinsetsu, Belfast Harbor, Harland & Wolff, MJM Marine, Foyle Port, Doyle Shipping Group and others. 

 

For Now, Ukraine's Only Warships Will Have to Remain in the UK

The Ukrainian Navy minehunter Cherkasy enters Portsmouth flying the Union Jack (Courtesy Royal Navy)

PUBLISHED APR 11, 2024 2:44 PM BY THE MARITIME EXECUTIVE

 

 

The United Kingdom has begun rebuilding Ukraine's navy with the donation of two minehunters, but a long-foreseen hitch prevents the vessels from reaching the Black Sea. Instead, the Sandown-class minehunters and their new Ukrainian crews will operate out of Portsmouth, training alongside the Royal Navy until the war ends.   

Since the outset of the invasion in February 2022, Russia has been determined to cripple Ukrainian shipping, and one of its earliest tactics was to lay mines in the Black Sea. Drifting mines damaged multiple vessels in 2023, and countless others were found and destroyed by Ukraine's neighbors. 

To counter Russia’s covert mine-planting missions and help Ukraine reopen its ports, the UK donated two older Sandown-class minehunters to Ukraine. However, delivery is not possible for the near future. In January, the Turkish government confirmed that it will not allow these vessels through the Bosporus. Turkey controls the strategic waterway under the terms of the Montreux Convention of 1936, and has the sole ability to close the Bosporus to warships while a war is under way in the Black Sea.  

For now, the need for minehunters in the Black Sea is less dire than it may have appeared last year. Ukraine's extended campaign of missile and drone attacks has driven the Russian Navy into the eastern edge of the Black Sea, lifting the blockade. Traffic to and from Ukraine's largest seaports has resumed, and now includes large-scale exports of steel products in addition to grain. Though risk from sea mines may still exist, maritime commerce is undeterred.

Until the war ends, the Ukrainian crew of the two minehunters will be based in the Royal Navy's main base at Portsmouth, far from the danger of the front lines. For at least their initial voyage from Scotland to Portsmouth, the vessels kept a low profile and flew their original British ensigns (though the Ukrainian Navy flag was also in evidence on their arrival, below). 

Ukrainian Navy minesweeper Chernihiv enters Portsmouth (Royal Navy)

The Sandown-class are the old workhorses of the Royal Navy minehunting fleet, and are equipped with sonar and robotic mine-removal systems. They are being phased out and replaced by Britain's new automated minehunting platform, beginning with the civilian-crewed RFA Stirling Castle. The Royal Navy has plans to acquire up to three more mine countermeasures ships like this former offshore vessel, beginning in the mid-2020s.

Courtesy Royal Navy

The two Sandown-class minehunters are the only surface vessels of note in the Ukrainian Navy, but the ship-free service has leaned on Ukraine's defense industrial base to create different capabilities. It has pioneered drone boat warfare at scale, swarming Russian warships with locally-built suicide boats, and has used Western-provided antiship missiles to considerable effect. To date, it has damaged or destroyed about one-third of the Russian Black Sea Fleet. 

CAPITALI$T EFFICACY AND EFFICIENCY

Ferguson Launches Ill-Starred CalMac Ferry Six Years Late

Courtesy Ferguson Marine

PUBLISHED APR 10, 2024 5:30 PM BY THE MARITIME EXECUTIVE

 

Scottish shipbuilder Ferguson Marine is hoping for an end to sustained criticism over its handling of the CalMac ferry project following the launch of the much delayed MV Glen Rosa on the River Clyde.

The shipbuilder has faced constant scrutiny over the building of Glen Rosa and her sister vessel Glen Sannox for Caledonian Maritime Assets Limited (CalMac) to service the Arran route. Both ferries are some six years late and will cost around three times the original price of £97 million ($123 million).

On Tuesday, Glen Rosa launched on the Clyde after her formal christening (with blended scotch rather than champagne). John Petticrew, Ferguson Marine interim CEO, called it a “landmark moment” for the shipyard.

“Today marks a significant milestone in the delivery of the two new ferries, following the success of MV Glen Sannox’s sea trials in February and last week. This demonstrates the hard work being done by everyone at the yard to complete both ferries as soon as possible,” said interim CEO Petticrew in a statement. 

The Scottish government-owned yard removed CEO David Tydeman last month, drawing further criticism from the opposition and incredulity from the yard's employees. "Out of six or seven CEOs we have had, David has been the best of them," union co-leader John McMunagle told BBC. 

Previously known as Hull 802, Glen Rosa is a 102-meter dual fuel vessel that will be capable of operating on liquefied natural gas and marine gas oil. It will have a capacity to carry up to 852 passengers plus at least 127 cars or 16 trucks when it is completed. 

The ferry, which was originally expected to be launched in 2018 and to enter service in 2019, will now take her place at the quayside recently vacated by Glen Sannox for her internal fit out.

The vessel’s name was selected through a public poll carried out last August, one of the three names shortlisted with the other two being Claymore and Glen Cloy. Glen Rosa was selected by 52 percent out of a total vote of nearly 5,000 entries. The ferry will serve Arran on the Ardrossan to Brodick route.

Glen Rosa is the 363rd vessel launched on the Clyde under the Ferguson Marine name. At around 3,000 tons, she is considerably heavier than her sister vessel was at launch and sets a new record for the yard in terms of weight at launch. She is also the last complete vessel on Ferguson's orderbook: the yard's only firm orders going forward are for hull sections, to be built under subcontract for another shipbuilder. 

 

DP World Sets Up Latin America's First E-Truck Charging Station

Courtesy DP World Peru

PUBLISHED APR 10, 2024 6:05 PM BY THE MARITIME EXECUTIVE

 

DP World’s terminal at the Port of Callao, Peru has begun using the first electric charging station for trucks in Latin America. The new infrastructure is part of the port operator’s decarbonization plans at Callao, with an aim of reducing over 2000 tons of carbon dioxide emissions per year.

The charging facility is located in a newly-built pier that will launch in the coming months, raising the Port of Callao's container capacity to 2.7 million TEUs.

The facility was built by Enel X Way, and will be used to charge 20 of the 100 percent electric internal transport trucks that DP World recently acquired for terminal operations. According to Enel, the station consists of 10 dual fast-charge chargers of 200 KW each, supported by an electrical infrastructure of 2MW of installed power.

Globally, DP World is investing around $72 million towards carbon neutral port operations, about 0.5 percent of its annual revenue. Part of the investment has gone into supporting port electrification programs such as in Callao.

As Peru’s major trade gateway, currently handling nearly 90 percent of the country’s container traffic, the Port of Callao continues to see expanded connectivity to international markets. Last year, the DP World terminal set a new record by handling 1.64 million TEU, an increase of 11 percent compared to 2022. 

“2023’s record TEU movement is unprecedented in Peruvian port history. Our success stems from significantly increasing the number of ship arrivals, up 30 percent, and a more than 40 percent boost in terminal productivity since 2021,” said Nicolas Gauthier, CEO of DP World Peru. 

 

 

Proud Seafarers Have Strong Doubts About the Safety of Autonomy

A survey of Norwegian bridge officers found considerable skepticism about the safety benefits of autonomy

USCG file image

PUBLISHED APR 11, 2024 10:08 PM BY GEMINI NEWS

 

 

[By Sølvi Normannsen]

Despite their great trust in on-board autopilots, bridge officers do not believe that autonomous ships will make shipping safer. Moreover, the greater the professional commitment and pride of the bridge officers, the less confidence they have in automation increasing safety at sea. 

The maritime profession is among the world’s oldest professions, and today’s shipping is based on long and proud traditions. Professional pride and commitment are often deeply ingrained in seafarers, and for many, the job is more of a way of life. New technologies will bring about major changes in the work of bridge officers, who have the ultimate responsibility on board Norwegian vessels.

Strong doubts about safety

“Bridge officers rely on automated systems that are already found on board, such as advanced autopilot systems. However, there is strong skepticism, almost mistrust, that increased automation and autonomous (meaning self-driving) ships will contribute positively to safety,” says Asbjørn Lein Aalberg, a PhD candidate at NTNU’s Department of Industrial Economics and Technology Management and SINTEF Digital.

Aalberg has studied the relationship between maritime officers’ professional commitment and the attitudes they have towards automation and autonomous ships as part of his PhD research.  The study ‘Pride and mistrust? The association between maritime bridge crew officers’ professional commitment and trust in autonomy’ was recently published in the WMU Journal of Maritime Affairs. The research was conducted in collaboration with the Norwegian Maritime Authority and Safetec.

More than 8,000 Norwegian bridge officers participated in the 2023 survey (in Norwegian). This is probably the largest survey in this field to date, both nationally and internationally.

Looking for the reasons behind the skepticism

Sooner or later, society must accept using modes of transport such as passenger ferries that have little or no crew on board. Aalberg believes that in order for operations to be as safe as possible, employees are needed who know how to control and monitor this automation.

“If we are to get there, it is important to understand what is behind the seafarers’ skepticism. We need their engagement, willingness and interest to ensure that the technology and systems being developed are fit for purpose,” says the researcher.

The reason why bridge officers trust autopilots and similar systems is that they themselves are still in control and can choose to turn the systems on and off as and when they see fit.

Few women in the sample

Aalberg has taken a closer look at the answers given by captains and navigators on board. Collectively, this group consists of 1789 Norwegian and 227 international bridge officers of all ages, with everything from 0 to more than 26 years of experience. Women constitute only 11 percent of Norwegian seafarers, and only 2.4 per cent of the participants in this survey.

“This probably reflects the fact that there are even fewer women among the people working on the ship’s bridge,” says Aalberg.

Among other things, the bridge officers were asked about:

• Their thoughts and feelings about the automation of work tasks
• Their confidence in autonomous technology
• Their professional commitment and pride
• Their own management work related to safety

Seafarers with an extreme sense of duty

Aalberg says that bridge officers are very proud of their work and exhibit what he would call a rather extreme sense of duty to their own profession.

“This pride may lead to additional mistrust when faced with radical changes. In fact, we found that those who take the greatest pride in their profession are most sceptical about technological developments,” says the researcher.

Another finding that he finds quite alarming is this: among the bridge officers who take the greatest pride in their profession, it is the younger ones who have the least faith in autonomy.

“When envisioning their future career, maybe they feel like they have more to lose,” says Aalberg.

One of the oldest professions in the world

This area has seen little research, and Aalberg says we don’t currently know enough about why seafarers exhibit such strong mistrust. One reason for this is that there are currently not many autonomous ships, and they are a hot topic of speculation and debate. It is therefore important to emphasize that different points of view may be based on rumors, vague impressions and unfounded notions of what the changes will entail.

It is also often the case that autonomous vessels are spoken positively about by individuals who are relative newcomers to the maritime industry. The survey indicates that this could spark uncertainty among seafarers, both in terms of the motives and intentions behind autonomy.

“Despite the fact that there seems to be a great need for seafarers in the future, some people may be afraid of losing their jobs. But I think the skepticism is more about the changes being made to the nature of their work. For example, there would be a great deal of uncertainty among captains if the position were to lose its independence. We must not forget that the maritime profession has a very long tradition, where a captain’s authority and control have always been strong,” Aalberg says.

Researcher Asbjørn Lein Aalberg hopes authorities can use the research results in dialogue with shipping companies and technology providers. He says that these different groups should include seafarers when developing new concepts and technological solutions. Photo: SFI MOVE

Professional discretion

The PhD candidate has also interviewed 31 Norwegian seafarers on board highly automated Norwegian passenger ferries about their confidence in the advanced automated systems that have been installed.  This study gives some hints about what it takes for bridge officers to trust advanced technology. Among other things, it relates to their lack of trust in the machines’ ability to demonstrate true ‘seamanship’ and exercise professional discretion in traffic. In addition, the interviewees did not believe that the machines will manage emergency situations well enough. All in all, they believe that people are best suited to making decisions in complicated situations.

“The reason they still trust autopilots and similar systems is that they themselves have control and the option to turn them on or off as and when they see fit,”  Aalberg says.

The shipping company and technology developers have also had a very long and ultimately successful development process that he believes is needed to satisfy proud seafarers.

However, all the informants were skeptical about the impending changes and expressed concern that increased automation would compromise safety at sea.

Autopilot is ok, autonomy is not

The studies show that bridge officers make a clear distinction between automation and autonomy. Automation involves machines taking over some of their tasks, while autonomy, taken to its ultimate conclusion, means unmanned ships.

Aalberg provides a nuanced perspective on the development.

“Many researchers argue that humans will play a crucial role in human-automation collaboration, even on autonomous ships. Previously, there was more talk about removing people altogether, to put it bluntly,” says the researcher.

Seafarers must be consulted

He hopes the authorities can use the results of the research in dialogue with shipping companies and technology providers. He says they should include seafarers when developing new concepts and technological solutions.

“They have to make, and talk about, innovations in such a way that it sparks interest instead of skepticism,” he says.

He also believes that projects involving technological development should openly share real results from testing in order to provide a nuanced perspective of what seafarers may see as as being overly idealized.

“We also know that seafarers gain trust in advanced technology by trying the technology themselves. Keynote speakers or even colleagues talking about the systems is simply not enough. They want to try them themselves and see if the automation makes the same choices that they would have made, so perhaps the development process should be structured accordingly,”  Aalberg says.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Two Electric Tugboats Enter Service at the Port of Vancouver, B.C.

Courtesy SAAM / Port of Vancouver

PUBLISHED APR 11, 2024 9:35 PM BY THE MARITIME EXECUTIVE

 

 

Two electric tugboats have entered service in the Port of Vancouver, marking an important milestone for Canada’s largest port. The two 100 percent electric tugboats were launched in a special event at the port with indigenous communities’ representatives, government officials and industry stakeholders.

“In all the world, there are only a handful of electric tugboats in operation. We’ll now see them hard at work in Vancouver’s magnificent harbor.  The reduction in pollution from these electric tugboats is the equivalent of taking 600 vehicles off the road,” said David Eby, Premier of British Columbia.

SAAM’s order for the two tugboats came through a contract with mining company Teck Resources, which agreed to use the vessels for towage at the Neptune coal/potash terminal at Port of Vancouver. The terminal is jointly owned by Teck and potash producer Canpotex (and Glencore, subject to regulatory approval sometime later this year). The German bulk carrier giant Oldendorff was also a partner in SAAM’s jump towards use of the electric tugboats.

“The christening and commissioning of our first electric tugs are proof of our commitment to move towards increasingly sustainable operations, seeking the best solutions tailored to each customer and conditions at each port,” said SAAM’s CEO, Macario Valdes.

The tug specialists at Sanmar Shipyards built the vessels in Turkey, using a Canadian design from their longtime partners at Robert Allan Ltd.  They have an overall length of 23 meters and can deliver a bollard pull of 70 tons.  

 

What Are China's Ambitions in the Antarctic?

Courtesy CHINARE

PUBLISHED APR 11, 2024 3:58 PM BY THE LOWY INTERPRETER

 

[By Benjamin Sacks and Peter Dortmans]

The recent opening of China’s Qinling base, its third permanent Antarctic station, has worried some Australian and American observers. Their concerns suggest it may be time for Australia to delineate China’s Antarctic ambitions more clearly and better organise its response.

Qinling is China’s first base located adjacent to the Ross Sea, south of Australia and New Zealand and near the US McMurdo base. Its satellite monitoring facility has raised Western apprehensions. Qinling could become another node in China’s People’s Liberation Army-affiliated BeiDou navigation network and be used to monitor Australian and New Zealand communications.

Some of Beijing’s own statements have supported these concerns, with China’s National Defense University’s Science of Military Strategy (2020) stating that “the polar regions have become an important direction for our country’s interests to expand overseas and far frontiers, and it has also proposed new issues and tasks for the use of our country’s military power”. Elizabeth Buchanan notes that the Chinese government’s civil-military fusion law requires “all civilian research activities…to have military application or utility for China. This extends to China’s Antarctic footprint”.

While experts should be concerned, they might be worried for the wrong reasons. Claire Young has stressed that Antarctica’s sheer remoteness and extreme climate limit its potential for Chinese military activities, at least with existing technology. She argues that Qinling is simply too distant from Australia and New Zealand to effectively monitor their communications. China could more easily monitor from neighbouring states or its disputed South China Sea artificial islands.

A 2023 RAND study, while acknowledging the potential military risks posed by China’s Antarctic activities, added that Chinese officials have affirmed their respect for the 1959 Antarctic Treaty and subsequent protocols, collectively known as the Antarctic Treaty System. The Madrid Protocol, for instance, banned Antarctic mining. China is a signatory.

The Ross Sea Marine Protected Area includes a (1) General Protection Zone; (2) Special Research Zone; and (3) Krill Research Zone (Wikimedia Commons)

What, then, are China’s long-term ambitions? Buchanan has argued that, in the Antarctic semi-regulated global commons, “presence equals power”. RAND, through an examination of both English- and Chinese-language sources, concluded that Beijing seeks a “right to speak” in Antarctic regional affairs and that this could be part of China’s efforts to shift the balance of Antarctic influence in its favour ahead of any future Antarctic Territory renegotiation.  

These efforts appear to be driven primarily by economics, especially in regard to krill fishing and mining, both of which fall under China’s vague goal of Antarctic “utilisation”. Along with Russia, China’s long-distance fishing fleet – the world’s largest – is rapidly expanding its krill industry, deploying super trawlers in the name of scientific research (in krill research zones) that will eventually collect more krill than is allowed under the Antarctic Territory System.

Both Russia and China have repeatedly rejected new marine protection areas and are likely to continue growing their lucrative fishing industries. China has so far resisted other signatories’ efforts to rein in its fishing ambitions. While other signatories are willing to abide by the limits imposed by the Antarctic Territory System, China and Russia appear to want to ignore them.

Similarly, China is eager to undertake onshore and offshore mineral extraction in Antarctica, despite being a signatory to the 1991 Madrid Protocol, which bans such activities. Some experts posit that in the future, China may be able to develop advanced mining technologies in anticipation of the Protocol’s potential 2048 renegotiation where it may seek to legalise some forms of mining. As the Antarctic Territory System currently has no enforcement mechanism, RAND added that Chinese Antarctic mining activities could consequently open “the floodgates for similar activities”.

Given that any signatory can call for the Antarctic Treaty’s renegotiation at any time – a privilege China has yet to invoke – it appears Beijing is biding its time while diversifying its Antarctic presence. Under this reasoning, China’s recent actions, including the opening of Qinling base, constitute long-term shaping activities to place itself in the strongest position possible ahead of any changes to the Treaty.

How should Australia and its allies and partners respond? Some observers have highlighted the Antarctic Territory System’s provision for unannounced inspections as key to mitigating Chinese ambitions. However, Russia has demonstrated that it can block inspections by making “station runways inaccessible” and switching off station radios “to block parties landing”.

Nengye Liu has suggested that Australia update its 2009 Australia–China Joint Statement to explicitly ensure the peaceful stability of bilateral Antarctic relations, given China’s significant Australian Antarctic Territory presence. Australia and its allies and partners should publicly “name-and-shame” China’s activities when and if they violate the Antarctic Territory System. Australia should consider sanctions against relevant Chinese individuals, state-owned enterprises, and the Polar Research Institute of China.

Given the uncertainties of Antarctica’s geopolitical future, as evidenced by growing concerns over China’s regional activities and ambitions, it may be time for the Australian Department of Foreign Affairs and Trade to establish its own Antarctic Affairs office. Such an office could be charged with establishing Australia’s future strategy and contingencies, working across government to implement its official position, and negotiating and building an international consensus with allies and partners.

Dr Benjamin J. Sacks is a policy researcher at RAND and a professor of political geography at the RAND Pardee Graduate School.

Dr Peter Dortmans is a Senior Researcher at RAND Australia, working primarily in strategic, technology and policy issues for the Defence and National Security community.

This article appears courtesy of The Lowy Interpreter and may be found in its original form here. 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.