Saturday, June 17, 2023

COMMODITY FETISH 

Salavador Dali Brooch Sells for $982,000


June 14, 23
 by John Jeffay

(IDEX Online) - A starfish brooch designed by Salvador Dali and featuring cultured pearl of diamonds, rubies, and emeralds sold for $982,000.

It was the highest price ever paid at auction for a piece of jewelry by the Spanish surrealist artist.

The Etoile de Mer belonged to socialite Rebekah Harkness, who is referenced in Taylor Swift's 2020 song The Last Great American Dynasty.

Swift paid $17m for the Rhode Island mansion in New England, USA, where Harkness (1915-1982) infuriated neighbors with her loud parties.

She founded her own ballet company and had Dali paint backdrops for her.

He designed the Étoile de Mer for her in 1949 and had it made by Carlos Alemany, the surrealist jeweler with whom he worked.

The brooch, complete with two attachable butterfly enhancements, made with diamonds, sapphires and emeralds, sold last week at Christie's New York below its $1m to $1.5m estimate.

Pic courtesy Christie's





 

NWT 

More Kimberlite Found at Gahcho Kue Mine


June 15, 23
 by John Jeffay

(IDEX Online) - Mountain Province Diamonds says it has discovered additional kimberlite at the Gahcho Kue mine, in Canada's Northwest Territories.

The Toronto-based miner says a kimberlite exposure was identified during routine mining operations in 2021. Drilling programs the following year indicated a significant volume of previously unknown kimberlite could exist.

Ten of 11 drillholes this year have intersected kimberlite at the mine's Hearne Northwest Extension.

"We are actively engaged with our operating partner De Beers to look at ways to recover this deeper kimberlite by underground mining," said Mark Wall, Mountain Province's president and CEO. "We will consider further drilling if the detailed work on this hole continues to return positive results."

The Gahcho Kue joint venture consists of several kimberlites that are actively being mined, developed, and explored for future development.

Commercial production at the mine began in March 2017 and has an estimated 12-year life.

Pic courtesy Mountain Province Diamonds

Mountain Province Diamonds Returns 40-Metre Kimberlite Intercept, 40 metres from known Tuzo Resource, Positive Drilling Results from the Hearne Kimberlite at the Gahcho Kué Mine



NEWS PROVIDED BY
Mountain Province Diamonds Inc.

12 Jun, 2023, 17:01 ET


TSX: MPVD

TORONTO, June 12, 2023 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) announces the discovery of additional kimberlite, approximately 40 metres to the northeast of the modeled Tuzo kimberlite. In addition, the drilling of the Hearne Deep and the Northwest Extension has seen multiple intercepts of up to 287 metres of kimberlite.


Hearne Drill Summary - Plan View (CNW Group/Mountain Province Diamonds Inc.)
Hearne Drilling Summary - Elevation View (CNW Group/Mountain Province Diamonds Inc.)
Tuzo Drill hole hits Kimberlite 40 metres from known resource (CNW Group/Mountain Province Diamonds Inc.)

The Hearne Northwest Extension was identified in late 2021 when a kimberlite exposure (25 meters across) was encountered in a lower bench face during routine mining operations. Drilling programs in 2022 indicated that a significant volume of previously unknown kimberlite could exist, with ten of sixteen drillholes reported kimberlite intersections up to 114 meters in the extension (see news releases, July 18 and November 30, 2022). In the 2023 program ten of eleven drillholes collared within and outside of the Hearne pit have intersected kimberlite with the longest intersection being 287 meters.

Mark Wall, the Company's President and Chief Executive Officer commented:

"These latest results at Hearne confirm that a significant volume of kimberlite exists in the Northwest Extension. Combined with our earlier results, we now have 21 drillholes that define the extension below the final pit and to the northwest. We are actively engaged with our operating partner De Beers to look at ways to recover this deeper kimberlite by underground mining."

In the present program, seven drillholes were collared outside of the pit and four were collared on kimberlite within the pit to test the width and depth of the extension respectively. A summary of the latest drilling results is provided below.

The drillhole locations and traces for this phase of drilling are shown as red lines in the images  with previous drill traces shown as gray lines. Drillholes within the pit are shown as red circles. Insets show the shape of Hearne prior to discovery of the extension. The internal geology of Hearne is shown with blue indicating hypabyssal kimberlite (HK/HKt) and yellow and green indicating fragmental kimberlite (TK/TKt). The modeled outer contacts and internal geology for the Northwest Extension are speculative at this time and will be adjusted as the results of detailed logging and analysis are received.

Following on the discovery and delineation of the Hearne Northwest Extension, drilling to look for a similar extension has been started at Tuzo. Limited historical drilling at Tuzo has confirmed kimberlite to a vertical depth of over 700 meters.

Based on the northeast-directed downward ramping of the 5034 kimberlite and its proximity to Tuzo, a single drillhole was collared east of Tuzo to test for a northeast extension. The image below shows the relationship of drillhole MPV-23-632C to the 5034, Tuzo and Wilson kimberlites.

Drillhole MPV-23-632C intersected TKt/HKt kimberlite from 669.77-710.00 meters, and is located roughly 40 meters northeast of the Tuzo kimberlite. The kimberlite phase in Tuzo that is nearest to the intersect is modeled also as TKt (shown in yellow in the image). Logging and mineral chemistry of the drill core is underway to confirm whether it is similar in detail to Tuzo.
Mark Wall, the Company's President and Chief Executive Officer commented:

"While the drilling for Tuzo is early stage and is still underway, we are encouraged by the width of the kimberlite intersection and its similarities to Tuzo based on initial logging. We and our partner De Beers will consider further drilling if the detailed work on this hole continues to return positive results."
About the Company

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls over 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat. All resource estimations are based on a 1mm diamond size bottom cut-off.

For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com.

Qualified Person

The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Matthew MacPhail, P.Eng., MBA, and Tom E. McCandless, Ph.D., P.Geo., both employees of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.

Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board

SOURCE Mountain Province Diamonds Inc.

Hecla Mining fined for hazardous waste management at silver mine in Alaska

Reuters | June 14, 2023 

Greens Creek mine in southeast Alaska is one of the world’s largest and lowest-cost primary silver mines. (Image courtesy of Hecla Mining.)

Hecla Mining Co was fined $143,124 for violating hazardous waste management and disposal requirements under the Resource Conservation and Recovery Act, the US Environmental Protection Agency (EPA) said on Wednesday.


The violation occurred at Hecla’s Greens Creek Mine in Alaska, which is the largest silver mine in the United States and accounts for more than half of the company’s silver production.

A 2019 inspection by the EPA found Hecla was disposing hazardous waste containing lead without a permit and failed to conduct weekly inspection of the storage area.

Hecla’s violations also included “failure to determine if waste from mining operations was hazardous” and “failure to properly label a used oil container”.

“The company operates in a relatively remote and pristine area in Alaska, underscoring their obligation to prevent pollution from entering public lands surrounding the mine,” said Ed Kowalski, director at EPA Region 10 Office of Enforcement and Compliance Assurance in a statement.

Hecla did not immediately respond to a Reuters request for comment.

(By Arshreet Singh; Editing by Krishna Chandra Eluri)
Striking Newmont miners have funds to extend Mexico stoppage

Bloomberg News | June 14, 2023 | 

Peñasquito operations (Photo: Goldcorp).

Workers at Mexico’s biggest gold mine have plenty of funds available to extend a strike as a dispute with owner Newmont Corp. enters a second week, a union official said Tuesday.


About 2,000 unionized workers at the Penasquito mine downed tools last week over a dispute regarding a profit-sharing agreement and alleged contract breaches, said Jorge Ramon Monsivais, labor secretary of the Sindicato Minero union.


The strike marks the third labor dispute since Newmont bought Penasquito from Goldcorp Inc in 2019. The mine, about 480 miles northwest of Mexico City, is Newmont’s third-largest by sales. It brought in $2.8 billion in sales in 2022, down 17% from the prior year because production lagged.

Striking workers at Penasquito have a so-called “resistance fund” to prolong the strike and would receive the support of associated members if those funds were to run out, Monsivais said. “They’re willing to continue the movement until this is cleared up,” he said in an interview.

Newmont shares were little changed at 10 a.m. in New York, as most gold-producing peers rose along with bullion prices.

UBS estimates Newmont’s earnings before interest, taxes, depreciation and amortization would decrease 3.6% in the second quarter if the suspension lasts for one month.

Even though the mine directly and indirectly employs 5,000 people, production has been suspended with a skeleton crew performing only basic tasks, Monsivais said.

While Newmont said workers are pushing for an increase in profit-sharing from an agreed 10% to 20%, Monsivais said demands are centered around a clarification on how the plan is calculated rather than a percentage increase. The union also alleges contractual breaches related to overtime payments and safety.

The mine is a major producer of silver and also churns out lead and zinc in addition to gold. According to Newmont’s latest quarterly report, output fell 38% in the first quarter.

“The company reiterates its interest in finding a solution that allows for the end of the strike, benefiting all parties involved,” Newmont said in a statement late Tuesday. “The company invites the union to engage in constructive dialogue and provides authorities with all requested information.”

(By James Attwood and Jacob Lorinc, with assistance from Alex Vasquez)

Newmont suspends operations at Peñasquito mine in Mexico

Reuters | June 8, 2023 | 

Peñasquito mine in Mexico. Image: Goldcorp via Flickr.

Newmont has suspended operations at its Peñasquito mine in Mexico in response to a labor strike notice, the gold miner said on Thursday.


On June 7, the National Union of Mine and Metal Workers of the Mexican Republic notified Newmont of a strike action demanding an increase in the profit-sharing benefit provided for in the Collective Bargaining Agreement (CBA) from 10% to 20%, the company said.

The New York Stock Exchange had halted trading of Newmont’s shares briefly before the strike action.

In July last year, the company had reached an agreement to pay its represented workforce a profit-sharing bonus up to 10%.

The mine had an annual attributable gold production of 686,000 ounces in 2021.

The union did not immediately respond to a Reuters request for comment.

Newmont added it remains willing to participate in conciliation meetings to reach a resolution in accordance with the CBA.

(By Ankit Kumar and Niket Nishant; Editing by Krishna Chandra Eluri)

 

Photos: Gibraltar Refloats Stern Section of Wrecked OS 35 Bulker

OS 35 removal
Stern section of the OS 35 has been refloated in preparation for its removal (Photos courtesy Government of Gibraltar)

PUBLISHED JUN 16, 2023 12:07 PM BY THE MARITIME EXECUTIVE

 

The Gibraltar Port Authority is reporting that a milestone was reached yesterday, June 15, in the salvage efforts for the bulker OS 35 that sunk more than nine months ago after hitting a gas carrier in the anchorage at the entrance to Gibraltar’s harbor. The salvage operation is entering its final phase to remove the two sections of the bulker that broke apart earlier this year during storms.

Lifting operations began on June 10 and yesterday the captain of the port said they were able to raise the stern section of the vessel out of the water. The process had called for reversing a controlling sinking they conducted in October 2022 to stabilize the wreck and prevent further damage to the environment. After ensuring the stern was watertight, they began to restore buoyancy.

 

 

“Progress continues to be made despite the challenging conditions of the wreck and work will continue to further stabilize the stern section,” reports John Ghio, the Captain of the Port. Once the stern is stabilized, they plan to place it on a semi-submersible platform ship, which can be seen standing by in the photos released today.

The second phase of the operation calls for the lifting of the bow section using cranes. The forward portion of the vessel was damaged when it hit the gas carrier and sustained additional damage due to storms. Once it is lifted onto the platform ship both pieces will be sent for recycling.

 

 

 “Works continue to progress at a safe and steady pace,” they said in the update. Previously, the port captain said weather and other conditions at the wreck site would dictate the timeline for this phase of the salvage operation. The government had set a deadline of the end of May for the removal, but later extended it after the weather had slowed the preparations for the salvage.

Separately, the master of the OS 35 made his second court appearance on Thursday in a Gibraltar court. The Magistrates’ Court decided yesterday not to impose additional penalties for the pollution charges and the oil damage to an antiquities site. Captain Abdelabari Kaddura, a Syrian national age 53, had previously pleaded guilty to charges related to the accident and was given a four-month suspended sentence. According to the reports, he has been released and is now free to travel home after having been detained in Gibraltar since the incident in August 2022.
 

 

Hellenic Coast Guard Defends Actions in Wake of Sea Disaster

Hellenic Coast Guard
Hellenic Coast Guard is continuing the search while defending its actions (Hellenic Coast Guard file photo)

PUBLISHED JUN 16, 2023 6:44 PM BY THE MARITIME EXECUTIVE

 

Greece, which has been frequently criticized for its handling of the migrant crisis and its handling of the endless waves of small boats moving through its waters, is being forced to defend its actions as the third and final day of the search for survivors of the fishing boat that sank early on Wednesday is concluding. United Nations officials are saying that they believe this is the second deadliest incident they have recorded in nearly a decade of the migrant crisis in the Mediterranean with human rights groups saying they believe as many as 500 people are missing.

Greece on Friday highlighted that it has arrested nine of the survivors of the tragedy reporting that they believe they were the mastermind and smugglers who arranged for the overpacked fishing boat. A Hellenic Coast Guard spokesperson is telling the media that the individuals were arrested on Thursday night from among the 104 people rescued. They are claiming they arranged for the fishing boat in Egypt, took it to Tobruk, Libya where they loaded somewhere between 500 and 750 people, including as many as 100 children gathered together below deck, and set off for Italy. The Coast Guard says late Tuesday night it saw hundreds of people on deck.

 

Hellenic Coast Guard released this picture saying their last approach was about three hours before the vessel capsized

 

The Coast Guard is saying that it along with the Hellenic Navy has a total of 12 vessels scouring the area 47 nautical miles southwest of the island of Pylos along with three helicopters. However, no one has been recovered since Wednesday. Four people were taken to hospital while 100 were initially in a hangar in Kalamata but reports said they have now been moved to a center near Athens. The Hellenic Coast Guard is highlighting that none of the people recovered had life-saving equipment.

Critics are questioning the Coast Guard’s timeline and version of events with media reports citing survivors who blamed the Coast Guard. The Coast Guard says it offered assistance on several occasions on Tuesday but was repeatedly turned away. They however had to revise an earlier report now saying they did briefly put a line across to the fishing boat which they said was simply to steady themselves while they attempted to make contact. Some reports are inferring the line may have been the cause of the fishing boat rocking violently and then capsizing.

UN officials are focusing on the smugglers calling for justice and saying more has to be done to stop human trafficking. IMO Secretary-General Kitack Lim issued a statement expressing the organization’s sadness highlighting “the sad fact that thousands of people undertake dangerous sea crossings in unsafe vessels.” He said the IMO will continue to work with others in the United Nations to address the complexities of the humanitarian issue and the unsafe transport of migrants by sea.

Greece’s Acting Prime Minister Ioannis Sarmas is promising a thorough investigation to determine what caused the boat to sink and the actions of the Coast Guard. Evangelos Tournas, acting minister of civil protection, defended the Hellenic Coast Guard insisting the vessel was in international waters meaning his country could not intervene with a vessel refusing assistance. Human rights groups however as saying they warned of the situation all day on Tuesday while others are saying Greece was obliged to act to stop a clear danger of the overloaded boat. 

Protestors in Greece are demanding the European Union do more, including changing its migrant policies to prevent more tragedies.

 

Video: Shipyard Dock and Crane Collapse Hitting Bulker

shipyard crane collapse
Shipyard's cranes collapsed with one hitting the bulker anchored alongside (YouTube)

PUBLISHED JUN 13, 2023 3:10 PM BY THE MARITIME EXECUTIVE

 

[Brief] Video is circulating online showing a shipyard accident in which a floating dock tilted. The images show one of the cranes from the dock hitting a bulker and reports indicate that there was some damage to the vessel but no injuries or casualties.

Turkish media is widely reporting the accident at the C?ndemir Shipyard, a privately owned facility in Tuzla, east of Istanbul. The shipyard reports on its website adding a floating dock with a lifting capacity of 3,000 tonnes to its facilities in 1999. They further expanded by renewing the floating dock in 2007 and increased its docking capacity to 5,000 tonnes.

Media reports and the videos do not indicate why the dock tilted and sunk. It appears to have collapsed with the two sides coming toward each other. The dock appears to have had at least two cranes both of which collapsed.

 

 

One of the two cranes toppled over onto the bulker Osprey S. which appears to have been anchored alongside. The 30,570 dwt bulker, which is registered in Liberia, drew attention in August 2022 as one of the first vessels cleared to proceed to Ukraine under the Black Sea grain export deal. The vessel’s AIS signal appears to show it has been at the shipyard since last October with the media reports saying it is being refurbished.

One crane came to rest on the side of the vessel after the dock collapsed and then breaks away hitting the hull of the vessel. The other crane closer to the ship collapses away from the ship toward the other wall of the dock.

It is unclear how much damage was caused by the crane hitting the bulker. Later pictures appear to show the ship repositioned to be alongside the berth. Reports indicate that the shipyard did not request assistance from Turkey’s General Directorate of Coastal Shipping.

 


 

 

Building a Safer North: Climate Security Risks in the Canadian Arctic

AOPS
Canadian Coast Guard / Lucie Lefrancois (via Royal Navy)

PUBLISHED JUN 15, 2023 10:57 PM BY PAULINE BAUDU

 

“What happens in the North impacts the world, and when you look at security issues and climate change, the world is paying attention more than ever,” recently noted Canadian Governor-General Mary Simon at an event at the Arktikum Science Centre in Rovaniemi, on February 9th, 2023.

Her comments reflected the profound and ongoing effects that Russia’s re-invasion of Ukraine in February 2022 has had on Arctic security, leading to a renewed global focus on the region – a focus which, in Canada, further intensified recently with the Chinese spy balloon incident acting as a reminder of the role that the Canadian Arctic plays in continental defense. Governor-General Simon’s remarks also mirror how interconnected climate and security realities are, in a region where freezing geopolitics interact with thawing landscapes.

In the Canadian Arctic, which is warming at least three times as fast as the rest of the globe, the physical impacts of climate change include permafrost thaw, decreasing snow cover, reducing summer sea ice, and sea-level rise leading to coastal erosion and flooding (in the Beaufort Sea, sea level has been rising by almost an inch a year over the last two decades). Climate change also contributes to changes in Canadian Arctic ecosystems -such as tundra greening and shifting boreal tree line due to intensifying boreal wildfires– ocean acidification, and increased precipitation.  

Climate change is increasingly being recognized as a threat (or risk)-multiplier, as its effects interact with and have the potential to exacerbate pre-existing threats and other drivers of instability to contribute to security risks. In an effort to advance Canada’s awareness of these risks, the Canadian Security Intelligence Service recently published an analysis outlining how climate change compounds and accelerates other security issues. 

In the Canadian Arctic in particular, beyond threats to landscapes and ecosystems, climate and environmental impacts converge with evolving strategic and security realities, posing a threat to human and national security. 

Human-security risks 

The primary and most pressing risk from climate change in the region lies in how it affects the human security, health, livelihoods, traditional lifestyles, and identity of local, mostly Indigenous, communities.

In particular, thawing permafrost exacerbates the pre-existing challenges related to the limited and underfunded local infrastructure, as homes, roads, runways and bridges are sinking in while pipelines and sewage systems are collapsing. In Iqaluit, this leads to serious environmental and health risks due to unintended spills and the contamination of freshwater supplies. Furthermore, in a region subject to the tyranny of distance, and where mobility is crucial to economic activity and to the survival of remote communities, the warming weather fragilizes ice roads and undermines hunting practices and the reliability of transportation, leading to more frequent accidents, and ultimately threatening food security. Rising sea levels also endanger entire coastal communities, with some of them being forced to relocate.  

Northern communities also face the security consequences of intensifying maritime activity in slowly opening waters, as increasing navigation in the Canadian archipelago means higher risk of environmental damage through oil spill, release of other pollutants, and damage to important marine life zones. Lastly, shifting migratory routes for animals due to climate-caused loss of habitat means both higher-risk of animal-borne diseases and limited access to traditional food sources, such as caribou, seals and fish species.

Risks to national security 

Climate change in the Canadian Arctic also poses threats to national security on multiple levels, ranging from conventional to hybrid issues.  

As competition may intensify for a more accessible Arctic which is expected to become more economically viable, the enforcement of Canada’s sovereignty is going to be challenged. Indeed, Canada has limited resources to monitor and respond to unwanted activity in its vast Arctic territory, including in the Northwest Passage – where legal status has long been disputed by other Arctic stakeholders.

In the grey-zone dimension, climate change is likely to amplify opportunities for malign actors to engage in the Canadian Arctic through below-the-threshold operations, aiming at destabilizing Canada by creating or instrumentalizing vulnerabilities, and blurring the line between legitimate forms of engagement and malign behaviors. Case-in-point for this are the activities carried out by China, which long-standing Arctic ambitions are often clashing with the interests of Canada and of other sovereign Arctic countries. Climate change may empower Chinese hybrid activities in the Canadian Arctic in several ways, from justifying a deeper scientific footprint to monitor climate impacts in strategically-significant locations to enticing Chinese investments in the Canadian mining sector as part of the clean energy transition.

Furthermore, as warming waters are challenging global fisheries and drawing new fish species to the North, Chinese fishing fleets can use the opportunity to enter Canadian Arctic waters, carry out reconnaissance activities and test gaps in Canada’s maritime and communication capacities. It is also worth noting that the multiple human-security risks from climate change outlined above intersect with the national security risks stemming from hybrid tactics, as climate change undermines societal resilience to external threats, such as cyberattacks or espionage activities. 

Furthermore, climate effects are challenging military readiness in the Canadian Arctic, as they impact missions, operational plans, and installations in the region. As ice melts, permafrost thaws, and storm behaviors evolve, damage to infrastructure will affect northern military installations including runways, heating systems and energy supply. Melting ice roads will disrupt access to bases and undermine transportation and supply. Such risks may be particularly problematic for the surveillance stations that are part of the North Warning System: should they become increasingly difficult to operate, this may, in turn, weaken their missile surveillance and warning capacities. Moreover, freezing rains, which have been found to be shifting northward and increasing in occurrence in the Canadian winter due to climate change, have major consequences for ground and air transportation and are already impacting the readiness of air forces stationed in the North. Of note, in a recent, high-profile instance, freezing rains have been presented by Chief of the Defence Staff Gen Eyre as the reason why Canadian fighter jets were delayed in departing to shoot down the Chinese balloon flying over Yukon on 4th February 2023.

Lastly, climate impacts will put a growing strain on Canadian forces, as they will need to address a surge in concurrent emergencies such as search-and-rescue and environmental-disaster response, related to the growing volume of maritime traffic in challenging Arctic conditions. Other concurrent unconventional issues requiring resources and attention from Northern forces in Arctic waters may include illegal shipping, smuggling, and other transnational organized crime activities.

Policy opportunities for a climate-resilient Canadian Arctic  

In light of this wide array of climate-related risks, Canada has an opportunity to deepen the integration of climate impacts across Arctic security planning and processes, and to adapt its security structure to anticipate and respond to evolving climate-security threats.

Championing climate adaptation and mitigation from military forces: 

This effort should entail proactively adapting Canada’s Arctic military infrastructure and equipment to rapidly changing climate conditions, in order to safeguard the Canadian Armed Forces’ ability to enforce sovereignty and to project force into the region. In this perspective, increasing Arctic presence and investing in maritime and space-based assets will be key to closing the long-standing gaps in Canada’s Arctic maritime domain awareness. Furthermore, the Canadian Armed Force’s (CAF) climate security efforts in the Arctic should include working to improve its energy consumption and efficiency, and minimizing its environmental footprint. Efforts toward greater energy resilience would further contribute to improving the CAF’s military performance in the region by overcoming the challenges related to remoteness and mobility. 

Conceptualizing multi-purpose infrastructure through integrated thinking: 

Given the extent of the challenge, and the profound nature of the Canadian Arctic infrastructure gap, a whole-of-government effort is required, in partnership with civil society and the private sector, in order to drive defense and energy technology innovation and build a multi-purpose, climate-resilient and low-carbon infrastructure benefitting both civilian and military communities. Only an inclusive and coordinated approach advocated by Indigenous-led organizations such as Arctic360, will ensure that local communities benefit economically from these investments, and that their cultural practices and self-determination are not threatened. 

Similarly, efforts to advance climate security in the Canadian Arctic should focus on understanding the crucial, yet often overlooked, Indigenous traditional knowledge in both the security and scientific domains, and on integrating this knowledge into foresight efforts, decision-making process, and military training and operations.

Strengthening continental and transatlantic cooperation: 

Finally, as issues related to climate change and security transcend boundaries, Canada will need to cooperate with Arctic allies and partners to design innovative solutions and capitalize on knowledge and capabilities.  

In particular, the United States, Canada’s closest military ally, has boosted its focus on climate security and resilience in recent years, including in the design of the White House’s Arctic strategy released in October 2022. The close partnership between Canada and the U.S. should move toward stronger cooperation in responding to climate impacts in the Arctic. This means systematically incorporating the climate factor in joint military training and exercises, and agreeing on equitable investments for the upgrade and climate-resilience of the North Warning System to strengthen continental defense.

Transatlantic cooperation with allies and partners will also continue to be key. In this regard, the new NATO Center of Excellence on Climate Change and Security (CCASCOE), to be hosted in Montreal, should serve as a platform to coordinate national climate-security efforts in the Arctic and provide guidance for allies and partners to operate sustainably in the region. Activities may include wargaming and simulations that are specific to the climate challenges faced by military forces in the Arctic, as well as harnessing relevant technical expertise – such as Finland and Sweden’s green energy industry and innovation capacities -, and buttressing partnerships with local and Indigenous communities to ensure responsible operations. By taking the lead on NATO’s Arctic engagement through CCASCOE, Canada is well positioned to ensure that human security, as well as sovereignty, are thoughtfully considered as part of NATO’s ascension in the region.  

Addressing climate security risks in the Canadian Arctic in a proactive, coordinated, and integrated manner will ultimately result in advancing Indigenous reconciliation, enhancing continental defense, and establishing Canada as a leader on the international Arctic scene. “Strong at Home, Secure in North America, and Engaged in the World.”

Pauline Baudu is a Senior Fellow at Arctic360 (Toronto), Associate at Arctic Security Consultants (Ottawa) and Nonresident Research Fellow at the Center for Climate and Security (Washington, DC).

This article appears courtesy of the author and was first published by The Vanguard. It may be found in its original form here

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

 

Study: LNG Will Be Most Affordable Compliance Option for EU GHG Rules

CMA CGM Concorde
An LNG-powered boxship under construction (CMA CGM file image)

PUBLISHED JUN 15, 2023 7:25 PM BY THE MARITIME EXECUTIVE

 

LNG has its critics in environmental circles, but its fiscal attractiveness is  clear, according to industry advocacy group SEA-LNG. Setting aside any debate  about LNG's environmental merits, it will be the least-cost option for boxship owners who need to meet EU compliance requirements for GHG reduction, the group argues in a newly-released analysis. 

LNG is one of the most affordable marine fuels under normal market conditions, and it has a lower emissions profile than HFO or VLSFO. Using SEA-LNG's estimate for LNG's well-to-wake greenhouse gas reduction benefit - about 20 percent below VLSFO - switching to LNG is itself enough to comply with the FuelEU Maritime GHG reduction requirements out through the year 2039. After that, operators would have to blend in varying proportions of costlier bio-LNG and e-LNG. (E-LNG may be the most expensive alternative fuel, according to the Maersk McKinney-Moller Center for Zero Carbon Zhipping). 

As the proportion of "green" fuel in the blend goes up to meet strengthened requirements, so does the cost for compliance - except for ammonia, which declines in price and becomes cheaper than a 50 percent gray / 50 percent renewable LNG mix by 2050. Blue ammonia (produced from natural gas with carbon capture) comes out as the most cost-effective option by midcentury, but not before. 

"It is clear from this analysis that the LNG pathway to compliance offers massively lower fuel costs than that for both the methanol and ammonia pathways, particularly in the first 15 years of the vessel’s life – a period critical for vessel financing decisions. The methanol pathway is approximately 2.5 times more expensive and the ammonia pathway, 2.5 to 3.5 times more expensive," concluded SEA-LNG. 

Reducing methane slip

Most of the debate around LNG's climate effectiveness centers on methane emissions. Natural gas is mostly methane, a gas with substantially higher warming potential than CO2, and a percentage escapes during upstream extraction, transport and liquefaction. LNG-powered ships also emit varied amounts of methane during operation, with the amount dependent on engine type and operating profile. 

This last emissions category - methane slip - has captured the public debate for years, with some environmental groups arguing that it makes LNG an unattractive alternative. Though this debate gets headlines, it may soon be over. The industry's biggest players are quietly working to eliminate engine emissions of LNG by 2030, according to Steve Esau, SEA-LNG's chief operating officer. 

"There are a number of companies on the shipping side and the OEM side who are investing a significant amount of money to measure where the operational emissions are coming from on board ship, and then looking at solutions for addressing those," says Esau. "That would be a combination of operational solutions and pre- and post-combustion technologies to deal with methane slip. And I think they're very confident that methane slip will be eradicated by the end of the decade."

 

NZ Fishing Vessel Confiscated for Failure to Report 20 Kilos of Coral

Westfleet
Courtesy Westfleet

PUBLISHED JUN 13, 2023 11:25 PM BY THE MARITIME EXECUTIVE

 

A court in New Zealand has ordered the forfeiture of a commercial fishing vessel over the crew's failure to report bycatch of about 20 kilos of coral.

In October 2020, the trawler Tasman Viking was operating near Lord Howe Rise, off the coast of eastern Australia. On one cast of her trawl net, the net came back with an unknown quantity of bamboo coral caught in the mesh. Under the rules of the Convention on the Conservation and Management of High Seas Fisheries Resources in the South Pacific, bottom trawlers have to report all taking of vulnerable corals and sponges. There is a take limit of 15 kilos, and if it is reached, the vessel must halt bottom fishing in the area. This mechanism is designed to protect bamboo coral, a deep-sea species that is particularly vulnerable to trawl damage. 

However, the crew of the Tasman Viking did not report the haul of coral, even though fisheries observers were on board and watching. Instead, they shot the nets again, pulling most of the coral back over the side and destroying the evidence. The observers weighed about 2.8 kilos worth of material that remained behind and took photos of the operation. 

New Zealand's Ministry for Primary Industries pursued an enforcement suit against the operator, Westfleet, for failing to report the bycatch. An expert witness for the ministry estimated that the net had brought up about 20 kilos of coral, exceeding the take limit; Westfleet's lawyer argued that the amount was far lower. Ultimately, presiding magistrate Judge David Ruth ruled that the quantity did not have bearing on the offense, which hinged on reporting. 

On Monday, Westfleet Fishing pleaded guilty to a breach of its permit requirements and failure to report the take of coral. Describing the firm's compliance culture as "cavalier," Judge Ruth sentenced the company to NZ$74,000 in fines (including penalties levied on crewmembers) and the forfeiture of the vessel, which is worth millions. While this may sound like a stiff penalty, New Zealand law allows the owner to appeal to the court to have the forfeiture changed to a fine, potentially a lower amount than the total value of the ship. 

"All commercial fishers are required to hold a permit to fish the SPRFMO fishing area, and reporting organisms from the sea floor such as coral and sponges caught is an important requirement. The rules are agreed by the countries of the South Pacific and are there for a reason – to protect the ocean environment and prevent fishing from causing damage to vulnerable marine ecosystems on the seafloor," said Fisheries New Zealand Regional Manager of Fisheries Compliance, Howard Reid.

In a statement to local media, Westfleet said that the failure to report was unintentional, and it is strengthening crew training to prevent any recurrence.