Opinion: Welcome to the club of crisis nations, Germany!

Germany is now also in a state of permanant crisis, and it's in good company. As a result, it has become a bit more Brazilian, and a bit more normal. But that's no drama, says Astrid Prange de Oliveira.

Computer says no: Germany now has its fair share of crises

Irritated, skeptical, astonished. Those were the types of reactions I got when I returned home to Germany during my time as DW's Brazil correspondent. "It must be terrible to live in Brazil," people would say, "High inflation, high crime rates, poverty, drugs, and the Amazon being destroyed at a record pace."

"How can you live in a country like that?" And worse still: "How can you love a country like that?"

Now I field those same questions from the other direction when I vacation in Brazil — an unmistakable indication of just how much Germany and its reputation abroad have changed.

'Alemanha' suddenly sounds different

When floodwaters devastated Germany's Ahr Valley last year, friends in Brazil wanted to send me donations. And now the threat of suffering cold showers this winter because Russia might turn off the gas! — a horrific thought for many Brazilians who like to shower a few times a day.   

"Alemanha" — as the Brazilians call Germany, always commanded a certain admiration — and not only in Brazil. Germany is still considered a societal and business role model in many ways, but critical tones are becoming louder and I am increasingly forced to offer justifications for Germany and its problems, or explain its current situation.

Many of the people I talk to don't find that off-putting. Instead they often nod knowingly, as if to say, "I know what you mean," and welcome you to the club of crisis-ridden nations.  

DW's Astrid Prange De Oliveira

More Brazil in Germany

Just to be clear: The two countries' problems remain vastly different. I don't want to insult either Brazil nor Germany, nor do I want to overemphasize or downplay long-term crises in either country. My message is simply: Germany has become a bit more Brazilian since the fall of the Berlin Wall.

The coronavirus, war and terrorism, inflation and Brexit, the European debt crisis and climate change — national and international politics have been in permanent crisis for more than 20 years. Before governments have the chance to ask themselves what they have learned from one emergency, another pops up — all with no end in sight.

Despite its reputation and its hopes, Germany was never and will never be an island of blissful content. It's time to finally drop our old ideal. Germany is now in a state of permanent crisis, and as such, finds itself in good company.

How else could it be? Climate change doesn't stop at Germany's borders. And even if bombs aren't falling here the effects of the wars in Ukraine and Syria are leaving their mark. Add to that homemade problems like dilapidated bridges, slow internet, late trains, and shortages of teachers, healthcare workers and skilled laborers.

Exhaustion and resistance

Despite those troubles I love Germany as it is — just like I love Brazil. And there it is again, the question: Can you love Brazil if Jair Bolsonaro is its president? And Germany, despite the far-right Alternative for Germany (AfD)?

Yes, I can, because I admire German society for its ability to resist antidemocratic outbreaks and defend the rule of law. And I admire the many Brazilians fighting to maintain democratic institutions, especially those in the justice system who have continued to successfully fend off attacks by the president.

And despite being constantly stressed and exhausted by permanent political, economic, and social crises — I have to live with them. I can ignore, curse, fight or flee them, or I can simply surrender.

My time spent with street kids in Brazil taught me that change is possible even in the most intractable situations. It taught me that children with no prospects in life can call my pessimism into question, caused me to reflect. Such encounters, in the midst of crisis, can be existential. Because with crisis seemingly here to stay, little rays of hope and human warmth become more important than ever.

This article was translated from German by Jon Shelton   

ZOONOSIS

Lust for giraffe meat, organs in Tanzania leading to extinction of tallest animal

Experts urge awareness campaigns to dispel superstitious beliefs that giraffe organs help treat chronic diseases

Kizito Makoye |10.07.2022

FILE PHOTO

MANYARA, Tanzania

The world’s tallest animal, the giraffe, may be on the brink of extinction in the East African country of Tanzania, as they are being poached to meet the demand for bushmeat and superstitious beliefs that their organs ward off misfortune and treat diseases like HIV/AIDS.

“This is a very serious problem here. Giraffes are innocently being killed by poachers. I urge relevant authorities to stop this madness,” said Kulwa Herman, a resident of the northern Manyara Region, known for the world-famous Tarangire National Park and Lake Manyara National Park.

He blamed the large-scale poaching on beliefs that the brain and bone marrow of giraffes can cure chronic diseases, including HIV/AIDS, and also boost men’s libido.

“People are being deceived by witch doctors to believe that giraffe body parts have magical powers. It’s absolute nonsense,” Herman told Anadolu Agency.

The giraffe's chief distinguishing characteristics are its extremely long neck and legs, the conical skin-covered bone structures on their heads, and its spotted coat patterns.

According to the international Giraffe Conservation Foundation (GCF), Masai or Tanzanian giraffe have been already declared an endangered species by the International Union for Conservation of Nature (IUCN).

The most populous giraffe three decades ago with an estimated 71,000 individuals, only 45,400 Masai giraffes remain in the wild today, according to the foundation.

But the Tanzania Wildlife Research Institute (TAWRI) claims that their aerial survey data recently found a mere 28,850 giraffes in the region.

Despite the giraffe being a national symbol protected under the country's conservation laws, independent researchers believe that almost 2,246 giraffes are illegally poached every year.

Alleged poacher, officer collusion

Herman said that gun-wielding poachers from the northern Arusha region often collude with local ward officers to trap and kill giraffes. They then extract their hair, tail, brains, and fats, which are highly valued on the black market, before escaping into the darkness.

“It’s very easy to kill a giraffe, that’s why many people are attracted to doing so. A single gunshot is more than enough to take down the big animal,” he said.

Benjamin Kuzaga, Manyara regional commander of the police force, said that in the past three months they have seized 560 kilograms (1,235 pounds) of poached giraffe meat.

“This is a serious problem here in Manyara,” said Jeremia Kizinga, a resident of Vilima Viwili village. “The police force should intervene, otherwise these animals will be finished.”

William Mwakilema, commissioner of conservation at Tanzania National Parks Authority, said growing human activity and settlements coming up near the wildlife corridors in the region have also increased the killing of giraffes.

Need to create awareness

“We’re working hard along with other security organs to identify and dismantle a vicious network of criminals involved in this illegal business,” he said. “We will leave no stone unturned until all the perpetrators are arrested and punished under the law.”

Selemani Juma, a local leader at Vilima Vitatu village in Manyara, said there was an urgent need to create awareness to stamp our superstitious beliefs.

He said the illegal trade is fueled by mistaken beliefs that giraffes’ fats and bone marrow and other organs help to treat chronic diseases and increase male sexual prowess.

“These claims are not true. We’re trying to educate the people to ignore these false claims and understand the importance of conserving wildlife, including giraffes, whose population is decreasing at an alarming rate,” he said.

LA REVUE GAUCHE - Left Comment: Search results for BUSHMEAT 

Spillover (book) - Wikipedia

https://en.wikipedia.org › wiki › Spillover_(book)

Spillover: Animal Infections and the Next Human Pandemic is a book written in 2012 by American writer David Quammen. ... Upon its release, Spillover received ...

Author: David Quammen

Publisher: W.W. Norton & Company

Published: 2012

Pages: 592 p

‎Synopsis · ‎Viruses and pathogens... · ‎Reception

Peru strives to keep dialogue going between Las Bambas, Indigenous as truce deadline looms

Valentina Ruiz Leotaud | July 10, 2022

Carlos Eyzaguirre, director of the General Office of Socio-Environmental Affairs of the Ministry of Environment of Peru. (Image courtesy of the Ministry of Environment).

As the dialogue between Chinese miner MMG Ltd and six Peruvian Indigenous communities has come to a stall and the July 15th deadline to find a solution to a months-long conflict looms, government authorities are making an effort to keep the conversation going by assuring that Las Bambas copper mine goes through regular environmental inspections.


During a public hearing in Huancuire, in the southern-central Apurímac region, the director of the General Office of Socio-Environmental Affairs of the Ministry of Environment, Carlos Eyzaguirre, said that the Agency for Environmental Assessment and Enforcement has so far performed 33 environmental inspections at Las Bambas.

According to Eyzaguirre, such inspections have been done as part of the obligations contemplated in the mine’s environmental impact assessment. The EIA – he said – also stipulates a series of commitments related to the way the mine is supposed to operate in relation to the surrounding communities.

The government official also pointed out that the Ministry of Environment is in charge of coordinating a specific working group whose objective is to foster a dialogue between Las Bambas and the Huancauire community, under the supervision of the Ministry of Energy and Mines and the Presidency of the Ministers’ Council.

The working group also operates under a committee created by ministerial resolution nº 182-2022, which is meant to oversee and evaluate the commitments agreed upon by the executive power, MMG and the communities of Fuerabamba, Chila, Choaquere, Chuicuni, Pumamarca and Huancuire.

The conflict

After a number of protests were carried out for almost two months, forcing MMG to halt operations for more than 50 days, a 30-day truce was called on June 15th by the six communities in conflict with Las Bambas.

The actions were originally launched in mid-April by the communities of Fuerabamba and Huancuire, who say Las Bambas has not honoured all of its commitments to them. Both communities sold land to the company to make way for the mine, which opened in 2016.

The Chila, Choaquere, Chuicuni and Pumamarca communities joined later with similar complaints and all six of them are part of the committee aiming to find a middle ground between people’s demands and what the miner is willing to offer.

Following the truce, copper production at Las Bambas has reached normal levels. However, MMG has said that it is unlikely to meet its production guidance of 300,000-320,000 tonnes of copper concentrates this year if a permanent solution to the conflict is not found.

Peru is the world’s no. 2 copper producer and Las Bambas is one of the world’s largest producers of the red metal, accounting for 1% of the Andean country’s gross domestic product.

Court admits class action against Bolivian authorities accused of allowing illegal mining at national park

Valentina Ruiz Leotaud | July 10, 2022 

Madidi national park in Bolivia. (Image by Arthur Chapman, Flickr).

The fourth constitutional chamber of the La Paz departmental court of justice admitted a class action against five authorities blamed for allowing or encouraging destructive mining operations in the Madidi national park, located in western Bolivia.


The class action calls for an ecological pause and the cessation of extractive activities that affect the environment and Indigenous peoples.

Madidi occupies an area of 18,958 square kilometres in the upper Amazon river basin and is part of one of the largest protected areas in the world together with the nearby Manuripi-Heath wildlife national reserve, the Apolobamba integrated management natural area and, across the Peruvian border, the Manu biosphere reserve.

Madidi and its neighbours are recognized as one of earth’s most biologically diverse regions.

According to Bolivian senator Cecilia Requena, one of the people involved in the class action, the reserve has been invaded by illegal miners, people logging indiscriminately and even drug smugglers.

Talking to local media, Requena showed the document introduced before the court, which blames the Minister of Environment and Water, Juan Santos Cruz; the director of the National Service for Protected Areas (Sernap), Teodoro Mamani; the Minister of Mining and Metallurgy, Ramiro Villavicencio; the director of the Mining Administrative Jurisdictional Authority (Ajam), Carmen López, and the Governor of La Paz, Santos Quispe, for allowing the destruction of the park.

The first audience where the plaintiffs are to make their case has been set up for July 29, 2022.

In detail, the class action demands the removal from the protected area of illegal mining settlements, mining cooperatives, and irregular and armed groups that create or maintain conflict zones, where violations of fundamental and human rights occur.

It also demands a stop to the granting of mining rights that lead to mineral exploitation in special protection zones.

The legal request also calls for a halt to any actions or activities that alter the natural course of rivers in the region and/or cause mercury contamination. The plaintiffs say that such operations endanger the ecological balance of the integrated management natural area of the Madidi national park and the health of the Indigenous peoples who live there.

During her press conference, Senator Requena said that, given that the court admitted the class action without making any observations, she is optimistic that it will declare an ecological pause at Madidi as a precautionary measure to prevent further destruction of the national park.

Brazilian jeweler sets out on a mission to promote ethical mining

Bloomberg News | July 11, 2022 | 

Ara Vartanian. Image: Ara Vartanian’s website

Brazil is home to many beautiful things, not least its exquisite natural gems, including rubellites, emeralds, and the famed Paraíba tourmalines. Independent Brazilian jeweler Ara Vartanian loves to showcase his country’s stones in his pieces, and now he’s spreading the word that the process of extracting them can be a thing of beauty in its own way: Responsible mining has the potential to dramatically improve lives and even combat deforestation. In 2020 he launched the Conscious Mining initiative to highlight Brazilian mines that invest in their communities and produce stones that can be traced back to the source.


If gemstones aren’t traceable, designers and clients have no way of knowing whether their purchase provided safe employment for workers or if they were mined in an environmentally responsible way. Traditionally, the mining industry has been a rather closed circle that’s kept its practices private, regardless of whether companies were doing wonderful or terrible things.

Vartanian grew up in the jewelry industry—his father was a precious-stone dealer, his mother a designer—and he saw this firsthand. “There was always a secretive aspect to the business,” he recalls. “Old-school guys like my father and the guys that he knew, they would always buy from each other.” Now, in his own business, he says he wants to do as much good as he can through his work. Through Conscious Mining he’s discovered local mines in Brazil that practice responsible extraction and help the local community and environment.

Related Article: What are birthstones?

Gemstones are mined around the world in a variety of ways. Some are massive and produce millions of carats of rough gemstones, while artisanal mines are much smaller. Regardless of size, some mining companies invest in local communities through education, health, and environmental projects, while others simply operate a mine and employ workers. There are also unregulated mines, which could have dangerous working conditions and might harm the local environment.

Vartanian focuses on working with operations that have strong corporate-social-responsibility initiatives, beginning with the Cruzeiro and Belmont mines in Brazil. He was impressed with the quality of the stones and by what he saw when he visited the mines, in terms of both mining conditions and benefits to the community. He wanted to find other mines with different stones that were also doing good things in their communities, but he realized: “There was nobody that I could call who would say, ‘These guys are good.’” Brazil has no monitoring agency or even a shared database to consult. It was also disappointing for Vartanian to realize that “sometimes the good guys are also the bad guys,” he says. “A lot of brands were doing more marketing than actual doing.”

So he decided to do it himself, by visiting mines he thought were doing good work and persuading them to bring their practices to light. In addition to rubellite and indicolite from the Cruziero Mine, he uses emerald from Belmont as well as Paraíba tourmalines from the Brazil Paraíba Mine.

Vartanian posts about the mines he uses on Instagram, where he has more than 67,000 followers, to spread the word and educate clients about the source of his stones. His website also has a section explaining his sourcing standards and why responsible extraction matters. These mines improve the quality of life in local communities not just with employment and education, but also through reforestation and water treatment projects. Vartanian is proud of his heritage and uses many Brazilian stones, especially Paraíba tourmalines. This Conscious Mining project is a way of honoring his country and its natural resources.

“I don’t get any financial benefit from it. I understood that by clapping my hands for people doing good, maybe that would make other miners do good,” he says. Mines have begun asking him to visit their mines to see their initiatives. He’s even had other jewelry designers reach out when they’re looking for specific stones, and instead of being secretive about his sources, he’s happy to connect them with the mines. “Isn’t that funny? They could be competition, and I’m introducing them to the mines,” Vartanian says.

This open spirit and demand for change in the industry has spurred other Brazilian designers to participate in his Conscious Mining initiative, including Fernando Jorge, Verachi, and Prasi. While independent brands can make a difference in their own business practices, they’re more powerful together. Jorge, an award-winning jeweler, was one of the first to join. “I have always been attentive to the quality and provenance of the materials I use in my pieces,” he says. “In 2019, I decided to engage further in the traceability of Brazilian gemstones and went to visit a mining operation in person. Soon after that, I learned that Ara had started an initiative, and he called us to join forces. Together we aim to develop more partnerships with suppliers who have the same concerns as us regarding basic human rights, responsible extraction, transparency in the production chain—which, in my view, is an urgent issue in our industry.”

Vartanian is thrilled with the response and hopes more designers will speak about their own responsible mining practices, or join forces with the Conscious Mining initiative. To educate clients and show the beauty of these stones, he designed Biela, a collection that uses gemstones from these mines in addition to tanzanite and black and white diamonds. The pieces have the same distinctive aesthetic as Vartanian’s other collections, with sharp lines, sweeping curves, and bold, colorful gemstones. They prove that ethically sourced jewelry doesn’t have to sacrifice style or quality, and that they can actually make you feel good about wearing your shiny new bauble or starting a jewelry collection.

(By Kristen Shirley)

 Worst of global energy crisis may still be ahead, IEA says

“The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” 

Bloomberg News | July 12, 2022 |

IEA Executive Director Fatih Birol. Credit: IEA

A global squeeze on energy supply that’s triggered crippling shortages and sent power and fuel prices surging may get worse, according to the head of the International Energy Agency.


“The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” IEA Executive Director Fatih Birol said Tuesday at a global energy forum in Sydney. “We might not have seen the worst of it yet — this is affecting the entire world.”

The whole energy system is in turmoil following the February invasion of Ukraine by Russia, at the time the biggest oil and natural gas exporter and a major player in commodities, Birol said. Soaring prices are lifting the cost of filling gas tanks, heating homes and powering industry across the globe, adding to inflationary pressures and leading to deadly protests from Africa to Sri Lanka.

Like the oil crises of the 1970s, which prompted huge gains in fuel efficiency and a boom in nuclear power, the world may see faster adoption of government policies that speed the transition to cleaner energy, Birol said. In the meantime, security of oil and gas supplies will continue to pose a challenge for Europe, and also for other regions, he said.

“This winter in Europe will be very, very difficult,” Birol said. “This is a major concern, and this may have serious implications for the global economy.”

The fallout for the global energy sector as the US and allies challenge President Vladimir Putin over the war in Ukraine and seek alternatives to Russian exports have highlighted the need to reduce dependence on fossil fuels, US Energy Secretary Jennifer Granholm told the same forum.

“Our move to clean energy globally could be the greatest peace plan of all,” she said. “We want and need to move to clean.”

Nations need to guard against switching reliance on one dominant energy supplier — Russia — for another in the shift to clean power, Granholm said.

“China has big-footed a lot of the technology and supply chains, and that could end up making us vulnerable if we don’t develop our own supply chains,” she said.

The nation controls about 80% of the global supply chains for solar power, which is set to rise to 95% by 2025, according to the IEA. China dominates much of the lithium-ion battery sector, is a key producer of wind turbines and seeking to quickly build capacity in clean hydrogen technology.

Developments including the US restricting imports of products from China’s Xinjiang region and a long-discussed tax in Europe on the import of goods made with high-carbon energy could help diversify the solar supply chain by creating openings for manufacturers such as India, Martin Green, a professor at the University of New South Wales, said at the conference.

“By building resilient clean energy supply chains, we can protect our economies from the shocks of the next crisis,” Australia’s Climate Change and Energy Minister Chris Bowen said in a speech at the forum. “There is no time to waste.”

(By David Stringer)

IEA Chief Warns The Energy Crisis Could Get Worse

By Irina Slav for Oilprice.com - Jul 12, 2022

• The IEA’s Executive Director Fatih Birol is warning that the global energy crunch could worsen.
• 
  
• The top man of the IEA noted the whole global energy system was in turmoil following Russia’s invasion of Ukraine.
• 
  
• “The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” Fatih Birol said.

The global energy crunch might worsen further, the head of the International Energy Agency has warned, noting that winter in Europe will be “difficult”.

“The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” Fatih Birol said on Tuesday at an industry event in Australia, as quoted by Bloomberg. “We might not have seen the worst of it yet -- this is affecting the entire world.”

The top man of the IEA noted the whole global energy system was in turmoil following Russia’s invasion of Ukraine, with prices of energy commodities skyrocketing across the board because of Russia’s size as an oil and gas exporter.

The situation is particularly bad in Europe, where, Birol said, “This winter [...] will be very, very difficult. This is a major concern, and this may have serious implications for the global economy.” 

Indeed, Europe is already worrying about the winter after Russia reduced the flow of gas via the Nord Stream 1 pipeline in June, blaming a delay in receiving a turbine from Canada, which had just imposed fresh sanctions on Moscow.

Earlier this week, Canada agreed to return the turbine after Germany asked it to make an exception, but Gazprom stopped the gas flow via Nord Stream 1 completely for regularly scheduled maintenance, sparking fears that it might not restart the flow after maintenance is completed.

Europe has been snapping up LNG cargos from all over the world to fill its gas storage ahead of the next heating season—and to fuel its economies as it seeks to reduce imports of Russian gas—but it has still a way to go before it reaches the goal of 80 percent by end-October.

Birol compared the current situation to the oil crisis of the 1970s, noting how that crisis spurred major progress in fuel efficiency and saying this one could lend additional momentum to the transition to low-carbon energy.

Gold-uranium mine in South Africa sheds new light on life’s power generators below earth’s surface

Staff Writer | July 10, 2022

Researcher Oliver Warr collecting samples in Moab Khotsong, South Africa. (Image courtesy of Oliver Warr / University of Toronto).

An international team of researchers discovered that Harmony Gold Mining‘s gold and uranium Moab Khotsong mine in South Africa hosts 1.2-billion-year-old groundwater, a finding that sheds new light on how life is sustained below the earth’s surface and how it may thrive on other planets.


In a paper published in the journal Nature Communications, the researchers explain that, for the first time, there is an insight into how energy stored deep in the earth’s subsurface can be released and distributed more broadly through its crust over time.

“Think of it as a Pandora’s Box of helium-and-hydrogen-producing power, one that we can learn how to harness for the benefit of the deep biosphere on a global scale,” Oliver Warr, research associate at the University of Toronto and lead author of the study, said in a media statement.

A decade ago, Warr and his colleagues discovered billion-year-old groundwater from below the Canadian Shield.

“Now, 2.9 kilometres below the earth’s surface in Moab Khotsong, we have found that the extreme outposts of the world’s water cycle are more widespread than once thought,” Barbara Sherwood Lollar, corresponding author of the paper, said.

Sherwood Lollar explained that uranium and other radioactive elements naturally occur in the surrounding host rock that contains mineral and ore deposits. These elements hold new information about the groundwater’s role as a power generator for chemolithotrophic (or rock-eating) groups of cohabitating microorganisms previously discovered in the earth’s deep subsurface.

When elements like uranium, thorium and potassium decay in the subsurface, the resulting alpha, beta, and gamma radiation has ripple effects, triggering radiogenic reactions in the surrounding rocks and fluids.
Never-before-seen krypton

At Moab Khotsong, the researchers found large amounts of radiogenic helium, neon, argon and xenon, and an unprecedented discovery of an isotope of krypton—a never-before-seen tracer of this powerful reaction history.

The radiation also breaks apart water molecules in a process called radiolysis, producing large concentrations of hydrogen, an essential energy source for subsurface microbial communities deep in the earth that are unable to access energy from the sun for photosynthesis.

Due to their extremely small masses, helium and neon are uniquely valuable for identifying and quantifying transport potential. While the extremely low porosity of crystalline basement rocks in which these waters are found means the groundwaters themselves are largely isolated and rarely mix, accounting for their 1.2-billion-year age, diffusion can still take place.

Solid materials such as plastic, stainless steel and even solid rock are eventually penetrated by diffusing helium, much like the deflation of a helium-filled balloon,” says Warr. “Our results show that diffusion has provided a way for 75 to 82% of the helium and neon originally produced by the radiogenic reactions to be transported through the overlying crust.”

The researchers stress that the study’s new insights on how much helium diffuses up from the deep earth is a critical step forward, as global helium reserves run out, and the transition to more sustainable resources gains traction.

“Humans are not the only life-forms relying on the energy resources of the earth’s deep subsurface,” Warr said. “Since the radiogenic reactions produce both helium and hydrogen, we cannot only learn about helium reservoirs and transport but also calculate hydrogen energy flux from the deep earth that can sustain subsurface microbes on a global scale.”

Warr noted that these calculations are vital for understanding how subsurface life is sustained on our planet and what energy might be available from radiogenic-driven power on other planets and moons in the solar system and beyond, informing upcoming missions to Mars, Titan, Enceladus and Europa.

Guinea halts Simandou iron ore project again

Cecilia Jamasmie | July 4, 2022 | 

Simandou is one of the world’s biggest and richest reserves of iron ore. 

(Image courtesy of NWR Civil and Mining.)

Guinea’s mines minister has once again ordered a full suspension of activities related to the Simandou iron ore mine project after the two companies involved missed an extended deadline to agree on a joint venture.


Mines Minister Moussa Magassouba, a member of the ruling junta, said that both Rio Tinto’s (ASX, LON: RIO) subsidiary Simfer and Chinese-backed consortium Winning Consortium Simandou (WCS) have shown a “lack of willingness” to work on a partnership, local news outlet Vision Guinee reports.

“There is a major discrepancy between the companies’ vision to implement the terms of the framework agreement and our expectations. This situation is not only regrettable but above all unacceptable,” Magassouba said, according to Vision Guinee’s report.

The minister added that despite the “significant concessions the Guinean State has been kind enough to make, it is clear the obstruction is being maintained by both companies, to the detriment of the interests of the project.”

Guinea’s current government, which took power in a military coup in September, has grown impatient with the companies that control the giant Simandou deposit.

It halted construction of the mine and related infrastructure once before, in March, pushing Rio Tinto and WCS to sign a framework agreement to “co-develop” infrastructure surrounding the project, including a 670 kilometre railway and a port.

TIMELINE: The battle for Simandou

In June, the junta gave the companies 14 days to agree to the joint venture, which was an extension of a previous deadline.

Guinean authorities have previously warned the miners risked losing their licences if they failed to meet a tight construction timeline for the project.

The vast deposit, in the country’s southeast, has not been developed since Rio Tinto first obtained an exploration licence for it 25 years ago.

“Caviar of iron ore”

At two billion tonnes in iron ore reserves and some of the highest grades in the industry (66% – 68% Fe, which attracts premium pricing), Simandou is one of the most easily exploitable iron ore deposits outside of Australia’s Pilbara region and Brazil.

At full production, the mine is expected to export up to 100 million tonnes per year. Simandou would by itself be the world’s fifth-largest producer behind Fortescue Metals (ASX: FMG), Vale (NYSE: VALE) and BHP (ASX: BHP).

Guinea has said any developer of the mine must build a railway spanning the country, even though it adds significant costs and the route to port through neighbouring Liberia is much shorter.

Eric Humphery-Smith, Senior Africa Analyst at risk intelligence company Verisk Maplecroft, wrote in March that Guinea’s decision to suspend all activities at Simandou reflected mostly the “power struggle” between the companies and Guinean authorities regarding recommendations they made in December in relation to the rail and port infrastructure.

“These developers are used to getting their way as the Guinean government has historically not offered much resistance (…) We don’t expect this to drag on much longer than a couple of months,” he anticipated.

Simandou’s development is also crucial to China. The nation sees the project, described by Rio’s president of copper operations, Bold Baatar, as the “Rolls Royce of iron ore”, as an opportunity to wean itself off its reliance on Australia’s iron ore.

Chile sticks to plan for new mining profit tax up to 32% linked to copper price

Reuters | July 1, 2022 | 

Santiago, Chile (Shutterstock)

Chile’s finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government’s proposed social programs and reforms.


Chile is the world’s top copper producer and is home to global copper giants like Codelco, BHP, Anglo American Glencore and Antofagasta.


“This means an increase in revenue from royalties, an increase in state participation in mining income,” Marcel said. “But also ensuring the mining sector has enough income to encourage investment.”

A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000.

The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5. Both components vary based on the price of copper.

Smaller copper producers will continue with the current system, Marcel added.

The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.

The proposal also raises taxes on high-income earners, capital gains and introduces a new wealth tax for citizens with more than $5 million in assets.

Marcel noted Chile, with a tax collection rate of 20.7% of GDP, is below the OECD median of 34.7%.

“Historically, few countries have reached economic prosperity with a low tax load,” Marcel said, adding that 97 percent of taxpayers won’t be affected by the proposal.

The bill also tries to reduce tax exemption and evasion while giving tax breaks for rent and care for children under 2 and the severely dependent.

(By Natalia Ramos and Alexander Villegas; Editing by David Goodman)

ONTARIO
Post Noront takeover, Wyloo gets to work on Ring of Fire assets

Alisha Hiyate | June 29, 2022 |

The Eagle’s Nest nickel-copper-PGM project in northern Ontario’s Ring of Fire region. (Image courtesy of BHP.)

Wyloo Metals made a big splash last year with its battle against Australian behemoth BHP (NYSE: BHP; LSE: BHP; ASX: BHP) for control of Ring of Fire junior Noront Resources.


The private, Western Australia-based company, owned by Australian billionaire Andrew Forrest’s Tattarang investment group, outlined its vision for Noront’s high-grade nickel-copper-PGM Eagle’s Nest project early on. The miner plans to build a net-zero mine that would process the nickel in-province and create a ‘future metals hub’ while awarding C$100 million ($77.5m) worth of contracts to First Nations-owned businesses and establishing a training and employment centre for northern and Indigenous communities.

And most importantly, perhaps, it promised movement on a project that has been stalled by a lack of infrastructure and by disagreement among First Nations on development, invoking Forrest’s experience as founder of major iron ore producer Fortescue Metals Group (ASX: FMG).

“Seventeen years ago, people told me Fortescue’s deposits would never be mined because there was no infrastructure to access our projects. We proved those critics totally wrong and we want to do the same in the Ring of Fire,“ said Andrew Forrest in a press release last year during the takeover battle for Noront.

After emerging victorious from the “fierce battle” with BHP and closing the acquisition of Noront in April, Wyloo is wasting no time getting to work.
Exploration potential

In early June, the private Australian company reopened the Esker exploration camp in Ontario’s James Bay Lowlands for the first time in three years. The company then began a 3,000-metre drilling program at Blue Jay — the first of 76 targets it intends to drill in the Ring of Fire.

The acquisition includes five existing high-grade orebodies: Eagles nest (nickel-copper-PGMs), McFaulds (copper-zinc) and the Blackbird, Big Daddy and Black Thor chromite deposits.

However, Wyloo CEO Luca Giacovazzi says that although those deposits have potential to be mined, the main attraction of Noront’s Ring of Fire claims was the exploration potential.

“We love the existing mines, but we thought, wow, these guys have just scratched the surface of the exploration potential here,” said Giacovazzi in an exclusive interview at the Prospectors and Developers Association of Canada conference in mid-June.

“Exploration-wise, the Ring of Fire must be one of the most exciting packages of ultramafic rocks in a mining friendly jurisdiction.”