Wednesday, May 05, 2021

Opinion: It's time to hold climate polluters accountable

Panic spread through Los Angeles when the city was first overrun by smog in July 1943, in the middle of World War II. With dense smog cutting visibility, irritating eyes and making it difficult to breathe outside, some locals believed they were being hit by a Japanese chemical attack.

© Barry Lewis/In Pictures/Getty Images Oil refinery, owned by Exxon Mobil, is the second largest in the country on 28th February 2020 in Baton Rouge, Louisiana, United States. Tens of thousands of people live within 2 miles of the complex, which produces gasoline for much of the East Coast. The petrochemical plants inside the complex make materials used in products such as diapers, chewing gum, tires and makeup. The state government gives Exxon permission to pump out millions of pounds of air pollution each year from its Baton Rouge complex. But because of accidents and leaks, from 2008 to 2011 the Exxon Mobil Baton Rouge complex put out nearly 4 million pounds of volatile organic compounds, or VOCs, without the government's approval. (photo by Barry Lewis/InPictures via Getty Images)


But while those fears of attack proved misplaced, public concerns about the health effects of breathing toxic air were not. Today, air pollution is widely recognized as a leading cause of asthma, heart disease and even death. Sobering new research published in February indicates these threats are even greater than previously understood.


The groundbreaking study, published in "Environmental Research" by scientists at Harvard University and the University College London, along with researchers from the University of Birmingham and the University of Leicester, found that in 2018, almost one in five deaths worldwide could be attributed to air pollution from fossil fuel emissions, specifically fine particulate matter of 2.5 microns or less in diameter (PM2.5), which can be 30 times smaller than the width of a human hair.

Because of their small size, fine particulates can penetrate deeply into the lungs, making them even more hazardous to human health than larger particles.

The health effects of these particles have been studied and known for decades, but this is the first global study to use 3-D atmospheric models to identify the impact of fossil-fuel-derived PM2.5 pollution on specific places and populations.

None of this should come as a surprise to the fossil fuel industry, which launched an internal Smoke and Fumes Committee in 1946 in response to growing calls from an increasingly concerned public to tackle LA's smog problem. The oil companies needed a way to reshape public opinion and head off potential regulation.

They were able to deflect attention and hold off the pressure and regulation for years. It wasn't until the early 1950s that scientists identified the booming automobile fleet as a leading culprit behind the problem, and effective regulation took another decade.

Initially formed by the Western Oil & Gas Association, then later subsumed into the American Petroleum Institute (or API) with a new national mandate, the Smoke and Fumes Committee was a pioneer in combining public relations with industry-funded science aimed at shaping and controlling the perception of air pollution and public health risks.

The Smoke and Fumes Committee's work laid the foundation for later denial campaigns, as described in an expert testimony delivered by Carroll Muffett, co-author of this op-ed, before the Philippines Commission on Human Rights back in 2018. The campaigns, financed by coal, oil and gas interests alike, waged war on public health regulations in the face of threats the industry internally recognized as real.

If Big Oil had air pollution trouble, coal had it even worse. In a 1966 "Mining Congress Journal" article, a Peabody Coal engineer summed up the industry's stance on impending air pollution regulations in simple, yet cynical terms, "We are, in effect, 'buying time'. We must use that time productively to find answers to the many unsolved problems."

The industry most worried that regulations would spread nationwide before pollution control technology was cheap to build, cutting into profits, an excuse and lobbying tactic that is still used today.

A 1971 internal document from the archives of Exxon's Canadian subsidiary Imperial Oil shows detailed awareness of various sources of particulate air pollution (coal being much higher than oil) even as it undercuts potential regulatory remedies -- like reducing levels of sulfur in petroleum fuel -- by emphasizing "higher costs to the consumer." In a statement issued to CNN, Exxon Mobil said the "allegations about the company's climate research are inaccurate and deliberately misleading."

The decontextualized 1971 statements, according to the company, "ignore other readily available statements that demonstrate our researchers recognized the developing nature of climate science at the time, which mirrored global understanding."

But, even as the coal, oil and utilities industries created The Global Climate Coalition (GCC) in 1989, to fend off growing concern about climate change, they recognized that growing concern over the health impacts of fossil fuel combustion posed a distinct and serious threat to the industry's social license and profits. An internal 1997 briefing memo, revealed through discovery in a lawsuit, reads, "The health issue is increasing in importance with the climate change issue, as well as with other environmental issues such as PM standards and ozone standards."

Through the 1990s, the GCC pushed misinformation, attacked scientific findings that added urgency to regulating global warming and pollution, helped block policy advances and argued that any limits on the use of oil, gas and coal would hurt the United States' economy.

Although the GCC disbanded in 2002, fossil fuel industries continued pursuing the same strategies throughout the 2000s and 2010s.

Organizations like the API launched attacks on the validity of critical public health research on health risks of PM2.5 and efforts from the US Environmental Protection Agency to respond to that research. As with climate change itself, the effects of industry denial and obstruction with respect to the health risks of PM2.5 have fallen disproportionately on poorer communities and communities of color.

This extraordinary history was documented in comments submitted to the EPA by Sen. Sheldon Whitehouse and eight other US senators in 2018, showing how these overt attacks on the scientific process were coupled with extensive efforts to shape science and regulatory analysis on the risk of PM2.5 and other pollutants within the EPA itself.

The industry's campaign of denial and obstruction on the health risks PM2.5 continued unabated through -- and in collaboration with -- Donald Trump's administration.

Unfortunately, many of the tactics and lines of attack created by the Smoke and Fumes Committee and perfected by the GCC are still in use today. Industry-funded efforts like Energy in Depth, a public relations campaign that FTI Consulting says is designed to, "provide that team the ability to say, do and write things that individual company employees cannot and should not," are dedicated to attacking peer-reviewed research on the health impacts of fracking.

Energy in Depth and other industry groups like the Texas Oil and Gas Association have repeatedly attacked news reports and studies about the link between fracking exposure and an elevated risk for asthma and cancer. Industry groups have also downplayed numerous alarming peer-reviewed studies that have linked preterm birth and reduced birth weight and exposure to air pollution from flares that burn off waste from gas and oil wells.

These flares can release particulates as well as benzene, heavy metals and other chemicals. Four years ago, Energy In Depth responded to these studies by publishing a "Compendium of Studies Demonstrating the Safety and Health Benefits of Fracking," stating "if natural gas is a boon to public health, it only follows that it would help increase life expectancy in adults and newborns."

The report cites research, not from gas fields in Texas, but from the replacement of coal with gas for cooking and space heating in Turkey.

Decades of intransigence and denial suggests that climate polluters and their surrogates will continue working to undercut the findings of this new Harvard study and try to block any effort by Joe Biden's administration that would meaningfully reduce related deaths.

The rising tide of climate litigation nationwide and advances in attribution science (linking damages to climate change, and linking climate change to fossil fuel producers) should serve as a warning to the industry. Two dozen US cities, counties, and states are now suing or investigating fossil fuel companies for the role their products play in driving the climate crisis, as well as the role of decadeslong industry denial efforts in compounding that crisis.

Likewise, individuals and communities harmed or threatened by climate change are bringing legal and human rights actions against fossil fuel producers in a growing number of countries, including Germany, the Netherlands, France and the Philippines, over the industry's role in the climate emergency.

Governments and investors alike are asking what fossil fuel producers knew about the climate impacts of their products, the risk those impacts pose to their business and their future, and whether those risks are being properly disclosed and addressed.

February's groundbreaking study demonstrates that it is increasingly possible to isolate and quantify not just the climate impacts of fossil fuels, but just how many deaths are a direct result of fossil fuel pollution -- not only at the global level but down to individual countries, states, and even cities.

This new science emerges against the backdrop of a decadeslong campaign of denial and obstruction by the companies that are major drivers of fossil fuel production and use. Stop us if you've heard this story before.

Opinion by Carroll Muffett and Kert Davies
4/5/2021





QUEBEC INC. CRIMINAL CAPITALI$M
Bombardier expecting Q1 revenues to increase 18%; faces accusation from debt holder


MONTREAL — Bombardier is expecting to generate higher revenues in the first quarter while the aircraft manufacturer faces an allegation that it breached debt covenants by selling its railway and commercial aircraft businesses
.
© Provided by The Canadian Press

The Montreal-based maker of business jets released preliminary results that expect revenues to increase 18 per cent from a year ago to US$1.3 billion. Full results will be released on Thursday at its annual meeting.

Bombardier also says it expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of US$123 million and free cash flow usage from continuing operations of US$405 million.

The company was expected to report US$1.18 billion of revenues and US$89 million of adjusted EBITDA, according to financial data firm Refinitiv.

Analysts also expect Bombardier to report an adjusted loss of US$189.4 million or seven cents per share.

Bombardier CEO Eric Martel said the preliminary results validate the actions the company has taken to reposition its business and reflects the progress it has made.

"Looking ahead, our markets are continuing to show signs of improvement and our plans and financial performance for the year remain on track," Martel said.

Bombardier said it received a letter on April 22 in which the holder of debt maturing in 2034 alleges the company's various assets sales constitute a breach of covenants.

The company said the allegation is "without merit" and the assets sales will allow it to reduce debt and improve its financial results.

Nonetheless, the Quebec aircraft manufacturer has decided to seek the consent of the holders of other debt securities for amendments to clarify that the asset disposals are permitted.

"With the assistance of external advisers, the corporation evaluated a range of options and determined that initiating the consent solicitations is the most expedient and efficient path to maintain value and protect the corporation and its stakeholders," Bombardier said in a news release.

Industry analyst Walter Spracklin of RBC Dominion Securities says the bondholder claim, which represents just 2.5 per cent of Bombardier's interest bearing debt, may be a "moderate overhang on the shares in the near-term."

For the quarter ended March 31, Bombardier expects to have delivered 26 business jets, the same amount as a year ago. The company still expects between 110 and 120 deliveries for the year.

Spracklin said the financial results suggest that Bombardier looks to be on track to deliver on the goals laid out at its recent investor day.

This report by The Canadian Press was first published May 3, 2021.

Companies in this story: (TSX:BBD.B)

The Canadian Press

Tyson Foods, Beyond Meat face off with new plant-based burgers

By Tom Polansek 
3/5/2021

© Reuters/MIKE BLAKE FILE PHOTO: Vegetarian sausages from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California

CHICAGO (Reuters) - Tyson Foods Inc is launching plant-based hamburgers and sausages ahead of the summer grilling season, the company said on Monday, increasing competition for Beyond Meat as it releases an updated version of its own faux burger.


Purveyors of plant-based meat are seeking to boost sales as COVID-19 vaccinations encourage more people to eat at restaurants and gather for backyard cookouts and other events.

Companies like Beyond Meat and Impossible Foods aim to meet consumer demands for more climate-friendly diets, but sales of some of their products have slowed more recently as the plant-based trend cools.

Tyson Foods, the biggest U.S. producer of animal meat by sales, introduced its first plant-based products in 2019. It is adding burger patties, bratwurst, Italian sausage and ground "meat" made from pea protein to its offerings, according to a statement.

The burgers, marketed under Tyson's Raised & Rooted brand, will be sold in packages of two quarter-pound patties at a suggested retail price of $4.99.

Tyson is making another attempt at an alternative burger after phasing out a patty last year that was a blend of beef and plants.

Beyond Meat, meanwhile, is launching a new version of its plant-based Beyond Burger at grocery stores nationwide this week, it said in an April 27 statement.

Packages of two quarter-pound patties have a suggested retail price of $5.99, while new packs of four patties have a suggested price of $9.99, according to the company. A one-pound Beyond Beef pack will also be sold.

Beyond Meat already sells plant-based bratwurst and Italian sausage.

Its updated burger is juicier and "BBQ-ier" than a previous version and resembles the flavor of ground beef, according to the company. Each Beyond Burger patty has 20 grams of protein, compared to 21 grams per serving for Tyson's burger.

"Our products are plants made meatier," said David Ervin, vice president of marketing for Tyson's Raised & Rooted brand.

(Reporting by Tom Polansek; Editing by Aurora Ellis)







DNA from cave dirt reveals details of Neanderthals and other ancient humans
By Katie Hunt, CNN 
MAY 3,2021

For centuries, archaeologists have searched caves for teeth and bones entombed in sun-starved dirt in the hope of piecing together how our ancestors lived and what they looked like.
© Max Planck Institute for Evolutionary Anthropology Early human DNA extracted from dirt can reveal details about ancient cave-dwelling Neanderthals.

Now, new techniques to capture DNA preserved in cave sediment are allowing researchers to detect the presence of Neanderthals and other extinct humans. These ancestors roamed the Earth before and, in some cases, alongside Homo sapiens. The latest techniques allow scientists to learn about our early relatives without ever having to find their bones -- just the dirt from the caves where they hung out.

Humans and animals constantly shed genetic material when they pee, poop and bleed -- and from shedding hair and dead skin cells. This genetic material leaches into the soil, where it can remain for tens, if not hundreds, of thousands of years if the conditions are right -- such as in dark, cold caves.

Researchers have, for the first time, retrieved detailed Neanderthal genetic material from DNA preserved in dirt in three different caves in Europe and Siberia, according to a study published in the journal Science in April.

"These are ancient caves where Neanderthals lived. You don't know if people are pooping where they lived and worked. I'd like to think not. But they are making tools, you can imagine they cut themselves. If they had children, the children maybe pooped -- they definitely didn't have Pampers," said lead author Benjamin Vernot, a population geneticist at Germany's Max Planck Institute for Evolutionary Anthropology.

Vernot helped develop the new technique to capture and analyze the DNA from cave sediments.

Unraveling mysteries


The first human DNA gleaned from cave dirt came from Denisova Cave in Siberia in 2017. Last year, scientists were able to extract the DNA of Denisovans -- a little-known human population for which we only have five definitive bone fragments -- from dirt in a cave on the Tibetan plateau. That cave is where the first Denisovan fossil remains outside the eponymous Siberian cave had been found. The discovery provided more definitive evidence for their presence in Asia.

Those findings, however, were of mitochondrial DNA, which is more abundant but less informative than nuclear DNA.

Vernot and his team are the first to glean human nuclear DNA from cave dirt.

"Mitochondrial DNA is only inherited from the mother, it's only one tiny thread of your ancestry and you lose a lot of complexity. If you look at the nuclear genomes of humans, Neanderthals or Denisovans, you can calculate how they were related and how many there were at a given time," Vernot said.

Extracting and decoding this DNA isn't easy, but it's beginning to reshape our understanding of prehistory and may allow scientists to untangle some of human evolution's biggest mysteries: how our ancestors spread around the world and how they interacted with other ancient humans -- including the enigmatic Denisovans.

"I think the Science paper is a remarkable technical achievement and opens up many possibilities for future work in Eurasia on caves with no Neanderthal (or Denisovan) fossils," said Chris Stringer, research leader in human origins and professor at the Natural History Museum in London. He wasn't involved in this latest study.

"Many temperate areas that currently have little or no archaic fossil human record may now be able to contribute to building a population history of Neanderthals, Denisovans and - who knows? - yet other human lineages," Stringer said via email.

Until recently, the only way to study the genes of ancient humans was to recover DNA from scarce fossil bones and teeth. To date, DNA has only been extracted from 18 Neanderthal bones, four Denisovans and the child of a Neanderthal and Denisovan.

This breakthrough means that many, many more DNA sequences can potentially be obtained, even without skeletal remains, to build up a more complete picture of ancient humans.

Where does the DNA come from
?

Vernot and his colleagues took around 75 samples from sediment layers in three caves where ancient humans long have been known to have lived: the Denisova and Chagyrskaya caves in southern Siberia and the Galería de las Estatuas in the Atapuerca Mountains in northern Spain. About three-quarters of the samples the research team took had ancient human DNA.

"In the caves we sampled, archaeologists had already dug deep and exposed the different layers so we were able to access 40,000 years of history. We took tiny plastic tubes and jammed them into the cave sediments and twisted them a bit."

Detecting the Neanderthal DNA fragments in the cave sediment wasn't easy, Vernot said. The caves were inhabited by other animals that have similar stretches of DNA to humans. And these caves also could have been contaminated by DNA from archaeologists who have worked in the cave.

The team compared the known genomes of Neanderthal fossils with those of 15 other mammals and designed chemical methods to target the uniquely Neanderthal part of the genome that would be most informative.

"Humans weren't the only things in that cave. We are related to all living things In Earth, and there are parts of our genome that are similar to bears or pigs. You really have to fish for the human DNA. Human DNA fragments are one in a million."

Ultimately, the scientists were able to tell when the Neanderthals lived in the cave, the genetic identity of the cave dwellers, and, in some cases, their sex. The oldest DNA the researchers managed to find was Denisovan and dated back 200,000 years.

The information the team gleaned from the Spanish cave was particularly intriguing, Vernot said. While it had been a hangout for ancient humans for more than 40,000 years, with many stone tools found in the sediment, the only Neanderthal fossil found there was a toe bone that was too small to sample for DNA.

However, the DNA Vernot found and sequenced showed that two separate lineages of Neanderthals had lived in the cave, with the later group evolving much bigger brains.

Using similar techniques, scientists announced last month that they had sequenced the genome of a prehistoric bear that lived more than 10,000 years ago using DNA fragments found in dirt in a cave in Mexico. The technique has wide applications to study the evolution of animals, plants and microorganisms, the researchers said.


Rolling the dice


In particular, Vernot wants to apply these techniques to cave dirt at sites that might have been occupied by both Homo sapiens and Homo neanderthalensis around 40,000 years ago. This is when early modern humans first arrived in Europe and encountered Neanderthals, who had lived in the region for tens of thousands of years. It could shed light on how the two groups interacted.

"We know that early humans and Neanderthals interbred. But we don't really know about that interaction. Did they live together or run into each other and have a one night stand?" Vernot said.

"Early humans brought with them a new technology for making stone tools -- more nuanced, with material from new places. We have sites with the old tools that we associate with Neanderthals and new tools we know (early modern) humans made but we don't have bones associated with those tools. It's entirely possible we met them and taught them how to do this."

It could also help build up a more complete picture of ancient humans in southeast Asia -- an exciting locale for paleoanthropology. It's where some of the world's oldest cave art has been found and the remains of puzzling archaic humans such as the Hobbits of Flores in Indonesia have been discovered. DNA degrades more easily in warmer climates, but these new techniques mean more DNA sequences potentially can be found.

"It's not like DNA preserves better in cave dirt but it allows you to roll the dice more times -- there's a lot more dirt than bones. There's a lot more needles in your haystack."




a group of people sitting on a rock: 
3 SLIDES © Richard G. Roberts
Researchers on the hunt for ancient human DNA took dirt samples from Chagyrskaya Cave in the Altai Mountains of southern Siberia.





Did the Amazon rainforest contribute to the ‘Little Ice Age’ of the 1600s?

Tim Vernimmen 1 day ago

© Photograph by Mauro Pimentel, AFP via Getty Images Drone view of Mamiraua Institute and WWF-Brazil researchers working in the area of Maciel Lake at Mamiraua Sustainable Development Reserve in Amazonas state, Brazil, on June 28, 2018. - Drones are the new allies of investigations on Amazon river dolphins, a tool that will reduce costs and times of investigations.

In the century after Europeans arrived in the Americas in the late 1400s, more than 50 million Indigenous people are estimated to have died from epidemics, warfare, and slavery. This human-caused tragedy, also known as the Great Dying, may also have left its mark on the landscape and climate.

In a 2019 analysis, U.K. researchers proposed that the regrowth of forests in places where Native people had cleared the land may have absorbed and stored enough carbon to contribute to a 17th-century dip in global atmospheric CO2 levels. This anomaly is thought to be one of the causes of an unusually cold period known as the Little Ice Age.

But a study published last week in the journal Science finds no evidence for such a scenario in the Amazon.

To test the idea that Amazonian forests bounced back during or after the Great Dying, a group of researchers led by paleoecologists Mark Bush, of the Florida Institute of Technology, and Crystal McMichael, of the University of Amsterdam, analyzed sediments from 39 lakes across the Amazon Basin.

“The sediments at the bottom of the lake represent the area’s history,” Bush explains, “with the oldest layers at the bottom, and the youngest at the top.” Using radiocarbon dating to determine the age of each layer, the researchers carefully screened the samples for pollen and charcoal. “This part of the Amazon doesn’t burn naturally,” says Bush, “so if you find charcoal, it’s a pretty sure sign of people.”
Return of the yarumo

From the pollen, the team identified the plants that grew near the lake at different times. When people clear the forest, there will be fewer pollen grains in the lake from trees, and more from grasses, herbs, and crops, says McMichael. “We often find corn and manioc pollen, but also squash and sweet potatoes.”

When sites are abandoned in the Amazon, the first pollen to show up in lake sediment is that of Cecropia trees, which are locally known as yarumo. “These are really weedy trees,” says Bush. “They grow from nothing to five meters (16 feet) in two years, so fast they are actually hollow, often with ants living inside. They’ll stay for a few decades, and then they are crowded out by other trees. But they produce a huge amount of pollen.”

Analysis of the charcoal and all the different kinds of pollen revealed evidence of forest opening, burning, or cultivation predating the arrival of Europeans in four out of five lakes. “That doesn’t mean 80 percent of Amazonia was deforested, of course,” says Bush. “People concentrate around lakes.”

Yet when the researchers reached the layers containing evidence of forest recovery, those often predated the arrival of Europeans by hundreds of years. “There is a lot of variation,” says Bush, “but what we see is that deforestation is strongest between 350 and 750 A.D. It slows down after that, with forests starting to regrow from around 1000 A.D.” During or after the Great Dying, however, evidence of forest regrowth is rare.
Unprecedented deforestation

That suggests that in the Amazon, at least, forest regrowth during and after the Great Dying seems unlikely to have contributed much to the dip in CO2 that caused the Little Ice Age, says Bush. “To get a noticeable amount of change in atmospheric CO2, you’d need to have a big area of the Amazon all changing at the same time. We don’t see that at any time in the past; it’s spread out in space and time.”

That should not make us worry less about the current deforestation in the Amazon, he adds. “The scale of today’s fires and deforestation is much larger, so I think that today, the threat of reaching a tipping point where the Amazon would become a source rather than a sink of CO2 is unfortunately very real.”

Geographer Alexander Koch of Hong Kong University, lead author of the 2019 paper suggesting a link between the Great Dying and the Little Ice Age, says that “pollen data only tell us if forest grew back at a specific location.” He believes the new study “does not refute the main hypothesis” of his article, which referred to the Americas as a whole.

He says the new research makes an important contribution but adds that Amazonia’s influence may have been limited compared to regions in Mexico, central America, and the Andes, where population decreases were larger. “Most of Amazonia was likely harder to reach and less affected by disease and colonizers,” Koch says. In his own analysis, only 4 percent of the increased CO2 uptake was estimated to have happened in the Amazon.

“European arrival in the Amazon was a gradual process,” says McMichael. The most devastating impacts on Amazonian people may have occurred later than the Great Dying in Mexico or the Andes, where there is more evidence of high mortality soon after the arrival of Europeans.

Conflict and disease

Based on their new data showing that forest recovery often predated the arrival of Europeans by hundreds of years, Bush and McMichael believe that population numbers in Amazonia probably peaked long before the arrival of Europeans on the continent. They think the number of people in the region may have declined and then stabilized at a lower level much earlier, allowing forests time to recover from the most intense phases of human activity.

Manuel Arroyo-Kalin, an archaeologist at University College London who was not involved in the study but has used archaeological evidence to reconstruct population trends, agrees. He points out that “ethnohistorical evidence clearly indicates population collapse as a result of European colonization,” but adds that his own research also suggests that the population peak for the Indigenous Amazonian population “may have come centuries earlier.”

But what might explain a decrease in Indigenous Amazonian populations if there were no foreign invaders? In their paper, Bush and McMichael point to evidence of increased hostilities in the adjoining Andes starting between A.D. 1000 and 1200, including “cracked skulls” and “defensive stockades.” Other researchers have reported increasing evidence of fortified settlements in Amazonia after 1200, says Bush. “This suggests people coalescing into certain areas, reorganizing to become less spread out and more defensively oriented,” he says, while avoiding border areas, allowing the forest to regrow there.

There’s also evidence of tuberculosis in the Andes between 1000 and 1300, which may have spread to Amazonia through trade. “It’s valid to ask whether Amazonian populations may have confronted similar challenges as their neighbors in the high Andes, who were experiencing tumultuous times,” says anthropologist Tiffiny Tung of Vanderbilt University. Tung is researching the upheaval that befell the Andean people but was not involved in the Amazon study.

It’s challenging to integrate pollen data from lowland lakes with evidence on disease and violence in the highlands, Tung says. “So I hope we’ll get better environmental data from the areas where we have rich archaeological data, and vice versa.”

This is also what Bush and McMichael are after. “We’re working with archaeologists now,” says McMichael, “and the next thing we want to do is go to lakes near some of their sites and see what we can get from those.”
POST MODERN ALCHEMY
Carbon copy? Pandora takes a shine to 
lab-made diamonds


By Tim Barsoe
MAY FOURTH 2021
© Reuters/INTS KALNINS FILE PHOTO: A general view of the Pandora shop in Riga,

COPENHAGEN (Reuters) - Pandora, the jewellery maker best know for its silver charm bracelets, will stop selling mined diamonds and focus on more affordable, sustainable, lab-grown gems, it said on Tuesday.

"Diamonds are not only forever, but for everyone," Pandora Chief Executive Alexander Lacik said as the Danish company launched a new collection of man-made stones.

Pandora, which made 85 million pieces of jewellery last year and sold 50,000 diamonds, said it aimed to "transform the market for diamond jewellery with affordable, sustainably created products".

The growing acceptance of man-made diamonds by millennials attracted to cheaper stones guaranteed not to have come from conflict zones has spurred firms such as De Beers to end its decades-old policy of shunning synthetic gems in its jewellery.


Prices of lab-grown diamonds have fallen over the past two years following the U-turn by De Beers in 2018 and are now up to 10 times cheaper than mined diamonds, according to a report by Bain & Company.

Pandora's new collection of lab-grown diamonds will be launched initially in the United Kingdom and will be available in other key markets next year, it said.

Pandora said it expected the diamond market to continue to grow, with sales of lab-grown diamonds outpacing overall growth.

Pandora's lab-grown gems will be made using a technology in which a hydrocarbon gas mixture is heated to 800 Celsius (1,472 Fahrenheit), spurring carbon atoms to be deposited on a small seed diamond, growing into a crystal layer by layer.


Pandora, which has until now sourced mined diamonds from KGK Diamonds, said it will get its lab-grown stones from suppliers in Europe and North America. Mined diamonds already in Pandora stores would still be sold, it said.

Opponents of mined diamonds say their extraction causes environmental damage and so-called blood diamonds help fund conflicts. A study commissioned by the natural diamond industry in 2019 said mined diamonds were less carbon-intensive.

(Reporting by Tim Barsoe; Editing by Jacob Gronholt-Pedersen and David Clarke)
Telenor posts Q1 loss after writing off Myanmar business following coup

By Victoria Klesty and Terje Solsvik 
MAY FOURTH, 2021

© Reuters/Marko Djurica FILE PHOTO: Telenor's logo is seen in central Belgrade

OSLO (Reuters) - Norway's Telenor said on Tuesday it had written off the value of its Myanmar operation in light of the country's deteriorating security and human rights situation, plunging the group into a first-quarter loss.


While it will continue to operate in Myanmar, Telenor's mobile business in the Asian country, where it has had a presence since 2014, remains severely restricted following the military's seizing of power in a Feb. 1 coup.

The company added some 2 million users in Myanmar during the quarter, increasing its local customer base to 18.2 million.

But the new regime imposed network restrictions for all operators, and on March 15 ordered a nationwide shutdown of mobile data that has since cut Telenor's subscription and traffic revenues in the country in half, the company said.

"We see an irregular, uncertain, and deeply concerning situation," Telenor Chief Executive Sigve Brekke said in a statement commenting on Myanmar.

"Due to the worsening of the economic and business environment outlook and a deteriorating security and human rights situation, we see limited prospects of improvement going forward."

Telenor fully impaired Telenor Myanmar in its first-quarter accounts, booking a loss of 6.5 billion Norwegian crowns ($783 million) and removing the operation from its overall corporate outlook for 2021.

The company aims to focus on the security of its employees as well as access to services for customers and continued transparency, Brekke said.

As a result of the writedown, the Telenor group's net earnings slumped to a loss of 3.9 billion Norwegian crowns in the first quarter from a year-ago profit of 698 million crowns.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8% year-on-year to 13 billion crowns, in line with an analyst forecast of 13.1 billion crowns.

Telenor, reiterated full-year guidance for overall organic revenue and earnings to remain unchanged year-on-year from 2020. It repeated that capital expenditure would amount to between 15% and 16% of sales.

The company, which serves 187 million customers in nine countries across Europe and Asia, a net gain of 5 million since the start of the year, last month announced plans to merge its Malaysian unit with competitor Axiata, seeking to form a new market leader..

($1 = 8.3020 Norwegian crowns)

(Editing by Kim Coghill and Kirsten Donovan)


Asia's methamphetamine cartels from China to Myanmar are using creative chemistry to outfox police, experts say
THE NEW INDUSTRICAL CHEMISTRY OF THE GOLDEN TRIANGLE
The shipping container raised suspicions as soon as it arrived in remote northwestern Laos last July.


By Joshua Berlinger, CNN 4/5/2021
© CNN Illustration/Getty Images

Paperwork showed it was packed with 72 tons worth of blue vats filled with propionyl chloride, a relatively obscure chemical, and bound for an area in northern Myanmar notorious for the industrial-scale manufacturing of synthetic drugs.

The cargo had been procured by a broker based in territory controlled by the United Wa State Army, a militia that for years has been accused of funding itself through drug sales.

But local authorities had not heard of propionyl chloride. It is not one of the 30 precursor chemicals scheduled by the International Narcotics Control Board (INCB) for use in manufacturing illicit narcotics or psychotropic substances.

Nor had there been any apparent attempt to conceal the cargo though the corrugated shipping container had taken an unusual route thousands of miles around Asia, rather than overland through China.

The propionyl chloride departed China's coastal province of Jiangsu, north of Shanghai, on a ship bound for the Thai port city of Laem Chabang near Bangkok. From there, the chemicals were transported north by land until they reached the Lao district of Huay Xai, just across the Mekong River from Thailand.
© Courtesy UNODC The shipping container held 72 tons of propionyl chloride when it was seized in Laos.

Laotian authorities decided to call Jeremy Douglas for advice. Douglas is the regional representative for the United Nations Office on Drugs and Crime (UNODC), and it's his job to help governments throughout East Asia and the Pacific combat transnational criminal activity. In the lower Mekong, that often means drug trafficking.

Douglas was astonished. He urged the Laotians to seize the chemicals because he knew propionyl chloride can be used to make fentanyl, a powerful and dangerous synthetic opioid that's ravaged the United States in recent years, and ephedrine, a key ingredient in methamphetamine. Propionyl chloride is not on the INCB list because it has plenty of legitimate uses, such as the production of agricultural chemicals and pharmaceuticals. However, the INCB recommends nations subject it to "special surveillance."

News of the seizure was kept under wraps until April this year, when Douglas and Thai authorities presented it at a virtual drug conference organized by the United Nations Global Drug Commission.

Laos authorities had stumbled upon a smoking gun, a major piece of evidence that likely explained how the kingpins behind Asia's multibillion-dollar synthetic drug industry had been outfoxing the Mekong's security forces. They were employing ingenuous chemical engineering, using a variety of unregulated chemicals, to make synthetic narcotics.

"These are very creative people," Douglas told the UN conference.

"Fundamentally, they are innovators. They are problem solvers."


The working theory


Authorities seized a record 175 tons of meth in 2020 throughout East Asia and Southeast Asia, a new record despite the Covid-19 pandemic, according to preliminary UNODC data. Drug prices continued to drop, meaning these major busts are not materially affecting the overall supply of drugs in the region.

But seizures of ephedrine, pseudoephedrine and phenyl-2-propanone (P2P) -- the most common chemicals used to make meth -- basically dried up. Douglas said authorities only seized 600 kilograms of ephedrine and 10 million tablets of pseudoephedrine, a "tiny amount" compared to the level of meth nabbed by authorities.

That left experts with a puzzling question: How was the meth being made?

If illicit drugs were being seized in record numbers, authorities should have found a higher volume of the chemicals to make them, too.

Experts floated the theory that cartels were importing chemicals like propionyl chloride and employing world-class chemists to produce their own ingredients to make meth -- like buying the flour to make a pie crust instead of just purchasing a pre-made one.

The law enforcement community often calls these chemicals "pre-precursors" or "non-scheduled-precursors." They are made and sold legally but diverted for illicit use at some point in the supply chain.

Some pre-precursors like propionyl chloride have legitimate chemical uses besides illicit drug manufacturing. Other so-called "designer precursors" are synthesized so they're chemically distinct enough to avoid government oversight, but serve no known purpose other than making narcotics.

Trying to regulate these chemicals often resembles a game of whack-a-mole. By the time a government has gone through the bureaucratic or legal process to regulate one, another new one has appeared.

However, despite the seemingly never ending flow of newly developed pre-precursors, converting pre-precursors into the ingredients for synthetic drugs is a technically complex process that involves expert chemistry.

Douglas said his office knew various pre-precursors were being confiscated across the Mekong, but the staggering volume of propionyl chloride seized in Laos all but confirmed their suspicions that illicit narcotics manufacturers were using this process.

"In a sense the seizure confirmed what we and others had suspected and for the past few years: that pre-precursors are a playing a major role in the regional drug trade," Douglas said.

"Organized crime are effectively working around controls on traditional precursors."

To combat drug and precursor trafficking across their shared borders, Thailand, China, Myanmar, Laos, Cambodia and Vietnam launched a joint intelligence sharing initiative in late 2019, named Golden Triangle Operation 1511.

The five countries hoped to "intensify cooperation" to close down trafficking hotspots in the greater Mekong.

From December 2019 to December 2020, agents arrested more than 16,000 people and seized nearly 450 million meth pills, more than 34,000 kilograms of crystal meth and more than 1 million kilograms of precursor chemicals, Thai authorities said at the UN panel.

Authorities in the region see it as a success so far, despite the operation being partly derailed by the pandemic.

"From our statistics, Operation 1511 has been able to seize a lot," said Paisit Sangkahapong, the deputy secretary-general of the Thai Office of the Narcotics Control Board (ONCB).

"However, there are still some other precursor chemicals that get through our checkpoints to the Golden Triangle area. This is something we have to work on," Paisit said.

Pre-precursors are a global problem. Cornelis de Joncheere, the president of the INCB called the increasing use of pre-precursors a "critical challenge to the international drug control system" at the UN-sponsored panel.

These issues are more acute in Asia because the illicit drug production centers in the Golden Triangle operate next door to two of the world's biggest chemical and pharmaceutical manufacturers, China and India, offering ready access to licit chemicals that can be used for illicit means.


"The symbiotic relationship between the chemical and synthetic drug businesses here in Asia is undeniable," said Douglas.

"The surge of meth took a surge of chemicals."

Correction: A previous version of this story misstated how much crystal meth Operation 1511 seized from December 2019 to December 2020.
Spies, satellites, subpoenas: soy buyers play hardball with Brazilian farmers

By Ana Mano

© Reuters/Paulo Whitaker FILE PHOTO: Employees working at cargo ship Kypros Land which is loading soybeans to China at Tiplam terminal in Santos

SAO PAULO (Reuters) - Global grains merchants are using satellites and spies to surveil Brazil's soybean heartland and deploying an army of lawyers to ensure farmers deliver promised crops instead of finding a different buyer at prices that have doubled since deals were made.

At stake are billions of dollars and the sanctity of crop contracts in Brazil, the world's top soy exporter accounting for roughly 50% of the global trade.

Soybeans have rallied to an eight-year high and Brazil soy exports have soared in particular, especially to China, which needs feed to rebuild a pig herd devastated by African Swine Fever.

If farmers deliver, traders make the profits. If farmers can break their deals, they could double their income.

The disputes have tested a somewhat informal business culture in rural Brazil. Farmers say traders are demanding delivery even when no contracts were signed. There are cases when only a verbal agreement was struck on Whatsapp. Other commitments were made over the phone or by email.Those deals are much less appealing to farmers now, as prices soared 71% from May 2020, when many were closed. 

Traders say farmers should honor their agreements, and lobbyists for top grains merchants such as Archer-Daniels-Midland Co, Bunge Ltd, Cargill Inc and Louis Dreyfus Co (LDC) detailed to Reuters the tactics they are using to keep farmers to their word.

Nancy Franco, a lawyer who represents all major trading companies and has been overseeing dozens of lawsuits against farmers reneging on contracts worth millions, said the number of cases against soy farmers skyrocketed to 40 this season from "two or three" in recent years after growers threatened to renege on contracts or asked for higher prices.

"This year traders are a lot more proactive," said Franco, who declined to discuss specific cases.

The last wave of Brazilian farmer delivery defaults came in 2003 and 2004, when soybean rust disease devastated crops. This year, traders say force majeure clauses apply to a tiny number of farmers, with most looking to cash in on high prices. Traders say trust in the integrity of contracts sustains Brazil's $45 billion soybean industry, from input and machinery sales to crop financing.

Yet farmers have accused buyers of harassing them and violating their privacy to ensure soy deliveries.

In a March police report seen by Reuters, a farmer in Goiás alleged intimidation from a contractor hired by Gavilon do Brasil, saying it was filming his farm without permission and claiming rights to his crop, 12,000 tonnes of soy worth almost $7 million at current prices, according to court filings related to the dispute.

U.S.-based Gavilon told Reuters its contract with the Goiás farmer was legal and binding. It said the soy rally created challenges in Brazil, where it was able to enforce fulfillment of most disputed contracts and get the soybeans it had negotiated for.

Last year, Brazilian soybean farmers sold an unprecedented volume of crops before planting a seed, as prices seemed attractive. Soon, dwindling supplies spurred an even bigger rally..

Traders arrange to buy soybeans in advance to secure supplies and fix purchase prices. Trades are hedged, and commitments to process or export are tied to these contracts. Sources at trading firms and their lawyers said tough tactics are needed to enforce contracts, formal or informal. Farmers insist that a washout clause gives them the right to exit contracts without paying fines of 30% to 50% of the spot price of the soybeans committed.

"We do not admit calling this contractual non-compliance, this is a contractual resolution," said Wellington Andrade, executive director of grower group Aprosoja, in an interview. "If we hadn't organized, the supply chain would be disrupted," said Alessandro Reis, COO of CJ Selecta, the local unit of South Korean group CJ Cheiljedang.

The CJ group bought 4 million tonnes of soybeans in Brazil this season to process and resell to international clients like Unilever and Norwegian salmon producers. CJ Selecta had about 2,000 active Brazilian soybean contracts and more than 400 farms under surveillance, Reis said, to ensure farmers do not take soy to warehouses owned by another company that pays more.

In February, after watching one grower in Minas Gerais state, CJ Selecta secured a court order to ensure delivery of 3,600 tonnes of soybeans. Court documents show the farmer committed soy to CJ Selecta in May 2020 at between 90 and 95 reais ($17.48) per bag, but later sought a better deal. WHATSAPP CHATS

Using evidence from WhatsApp messages, Marcus Reis, a lawyer for Brazilian grain buyer Agrobom, obtained a court order to seize thousands of bags of soy from producers seeking to renegotiate prices. Agrobom had contracts to sell soybeans to Bunge and could not afford to buy soy on the spot market if the farmer defaulted, Reis said.

Courts have mostly sided with trading companies, but farmers argue that informal contract talks should not be legally binding.

"There was this WhatsApp chat in February last year with my client trying to sell the soy," said Nelson Barduco, who defends grower Marcelo Rezende, one of the farmers sued by Agrobom. He said the farmer later rejected a formal contract.

Agrobom told Reuters a simple "okay" from a farmer is a real commitment, especially when parties have done business before. Barduco said his client had to accept 80 reais per bag of soy worth double the amount, otherwise the court case could drag on while the soy sat in a storage facility. Rezende and other farmers named in lawsuits declined to speak to Reuters.

Two farmers in Mato Grosso, speaking on condition of anonymity, confirmed some growers broke their contracts. One farmer said rains disrupted harvesting in Brazil's top farm state. The other knew farmers who deliberately delivered product to new buyers, causing embarrassment to the local farming community. A source close to China's state-run trading house Cofco, who requested anonymity, said defaults are up by "two or three times" from prior seasons. The company invested in monitoring and satellite technology "knowing this season would be challenging," the person said.

Cofco did not respond to request for comment.

Abiove, an association representing oilseeds crushers and traders, in February announced creation of a database allowing members to share information on farmers and certain details about contracts. This angered farmers.

Abiove said the database is legal and managed by a third party. Combined with surveillance efforts, it helped keep defaults below 1% of contracts, said André Nassar, Abiove's president, adding a similar tool could be used to monitor Brazil's corn growers.

Abiove members Bunge and LDC declined to comment. Cargill's president in Brazil, Paulo Sousa, admitted default concerns this year but said cases are "isolated." ADM did not respond to a request for comment.

Aprosoja criticized the sharing of information from private contracts, saying it may breach data protection laws.

"Obviously this monitoring system will serve to blacklist a farmer when he decides to re-discuss the contract," Andrade said.

(Reporting by Ana Mano and additional reporting by Roberto Samora in São Paulo; Editing by Brad Haynes, Caroline Stauffer and David Gregorio)
Explainer: The Dakota Access Pipeline faces possible closure

By Devika Krishna Kumar and Stephanie Kelly
© Reuters/LEAH MILLIS FILE PHOTO: Indigenous youths protest the Dakota Access Pipeline and the Line 3 pipeline in Washington, U.S.

(Reuters) - A U.S. court could order the Dakota Access Pipeline (DAPL) shut in coming weeks, disrupting deliveries of crude oil, and making nearby rail traffic more congested.

WHAT IS DAPL?

The 570,000-barrel-per-day (bpd) Dakota Access pipeline, or DAPL, is the largest oil pipeline out of the Bakken shale basin and has been locked in a legal battle with Native American tribes over whether the line can stay open after a judge scrapped a key environmental permit last year.

A federal judge ordered the U.S. Army Corps of Engineers to update the court on its environmental review of the pipeline by May 3 and decide if it believes the line should shut during the process.

WHAT IS THE DISPUTE?

Native American tribes long opposed to DAPL say the line endangers Lake Oahe, a critical water source. Pipeline construction under the lake was finished in early 2017 and the line is currently operating. But a judge last year vacated a key permit allowing that service, raising the possibility that the line could close while a thorough environmental review was completed.

Dakota Access oil pipeline's operators plan to ask the U.S. Supreme Court to intervene, according to a court filing last week.

WHAT ARE THE CHANCES THAT THE LINE WILL CLOSE?

So far, the U.S. Army Corps of Engineers has not requested the line to be closed, even after the federal permit was canceled. It expects to complete the environmental review by March. Market analysts believe there is some chance the judge orders the line closed, and there is concern about the disruption that would cause.

WHAT WILL OIL PRODUCERS DO IF THE LINE IS CLOSED?

The U.S. shale boom created more demand for rail transport of crude in North Dakota, the second-biggest oil producing state in the country. Outbound rail traffic rose by almost 300% between 2002 and 2015, a North Dakota Department of Transportation report showed.

However, rail is expensive and takes longer to ship, making pipelines the preferred shipping method. If DAPL were to shut, producers would be pushed toward crude by rail again, BTU Analytics said.

WHAT COULD HAPPEN FOR FARMERS IF THE LINE IS SHUT?

If shippers divert oil shipments onto railcars, it will create transport bottlenecks in the region, especially in North Dakota, which relies on rail to transport over 70% of its agricultural production, economists and industry sources said.

"Probably more grain would be piled on the ground until the time it could be moved by rail," said Jeff Thompson, a farmer in South Dakota and a director of the South Dakota Soybean Association, which supports DAPL.

In 2019, North Dakota led the nation in the production of all dry edible beans, canola, durum wheat, and spring wheat. The state is a captive rail market, which means there are no other economically viable options to deliver agricultural products, said Stu Letcher of the North Dakota Grain Dealers Association.

ARE RAILROADS PREPARED?

Railroads have improved load capacity over the last decade in response to past constraints, said Bill Wilson, professor at North Dakota State University and a member of the North Dakota Soybean Council.

"I would be surprised that, if DAPL was shut down, that the railroads were not capable of handling that added business," Wilson said.

BNSF Railway, which operates the greatest number of route-miles in North Dakota, is prepared to handle any increase in rail traffic if the DAPL is shut, the company said.

The other major railroad serving the region, Canadian Pacific Railway Ltd, is committed to delivering for customers across all businesses, said spokesman Andy Cummings.

(Reporting by Devika Krishna Kumar and Stephanie Kelly in New York; Editing by Aurora Ellis)