Faulty seals replaced in Olkiluoto EPR

16 May 2023

Finnish utility Teollisuuden Voima Oyj (TVO) said it had detected and subsequently repaired defects and deficiencies in the seals of the connectors of unit 3 at the Olkiluoto nuclear power plant. The EPR entered commercial operation on 1 May.

Olkiluoto 3 (Image: TVO)

The company said: "During the years 2022-2023, several cases of signal failures in safety-classified temperature measurements have been detected. In February, it was found that some connectors of temperature measurements were missing either one or both of the required seals".

A total of 108 connectors were inspected, with 29 of them found to be missing seals, TVO said. "All the inspected connectors have now been provided with new seals".

TVO noted the connectors with missing seals will work under normal operating conditions, but do not necessarily fulfil the requirements specified for accident conditions. "Their operability cannot be guaranteed in loss of coolant accidents," it added. 

As the incident was accompanied by inadequate guidance and the defect was detected in several locations, TVO concluded that the incident falls under category one on the International Nuclear and Radiological Event Scale (INES). According to the INES, the incident was classified as "an anomaly".

On 17 April, TVO submitted a special report of the event to Finland's Radiation and Nuclear Safety Authority (STUK) for approval. STUK approved the special report and TVO's assessment of the INES rating on 10 May.

"The absence of a single seal as such is not a safety issue, but the recurrence of the error increased the significance of the incident on the assessment scale," STUK noted.

OL3 attained first criticality on 21 December 2021 and was connected to the grid on 12 March 2022. The EPR, a 1600 MWe pressurised water reactor, then entered a phase of test production during which some 3300 tests were conducted and more than 9000 test reports collated.

On 20 April, TVO submitted the Provisional Takeover Certificate to the Areva-Siemens consortium, the OL3 plant supplier. The final acceptance of the plant unit will take place upon termination of the two-year warranty period.

Researched and written by World Nuclear News

Successful demonstration of new sludge removal technique

A new technique for removing sludge from nuclear fuel ponds has been successfully trialled at one of the UK's largest wet test facilities prior to being used at a nuclear site.

TDA testing at Forth's Deep Recovery Facility (Image: Forth)

The Decommissioning Alliance (TDA) - a partnership comprised of Jacobs, Atkins and Westinghouse - is tasked with installing equipment to allow operators to safely retrieve debris from the bottom of fuel ponds at a site operated by the Nuclear Decommissioning Authority (NDA) in order to safely remove and transport the recovered material for safe, long-term storage.

TDA representatives will complete the task by attaching a Bulk Sludge Retrieval Tool (BSRT), which ultimately acts like an industrial hoover, to a 40-metre cable. The tool will retrieve the sludge and then store it in a safe manner.

To test the new way of working, which includes the use of remotely operated vehicles to lock a hinged double boom arm in position, the team trialled the methods at engineering specialists Forth's Deep Recovery Facility (DRF) at the company's headquarters in Flimby, Cumbria.

Measuring 22.5 metres long, 10 metres wide and six metres deep, the DRF at Forth is able to hold 1.2 million litres of water, making it the largest facility of its kind in the north of England.

To facilitate the tests, engineers at Forth designed and manufactured a frame to attach the equipment, and they provided access scaffolding and operators to deploy the equipment.

"The work we are carrying out at the site has been ongoing since 2010 and has been instrumental in reducing the inventory in the pond, which in turn reduces the overall risk," said TDA Project Manager Scott Bond. "We are always looking for ways to ensure our work is safer, more efficient and more cost effective for the client, and the new methodology of installing the BSRT and the umbilical has the potential to be a game changer.

"Before implementing the practices live on-site, we need to be 100% certain that they are safe and effective, so the trials we carry out are absolutely essential. Being able to successfully test the equipment at Forth's DRF, particularly when it's on our doorstep, was a Godsend for the project because we couldn't find a facility big enough to host the trials; other than the open sea or a dock, but that brings with it more hindrances as the water is very corrosive."

Bond added that using the indoor DRF meant TDA was able to successfully trial the methods and replicate site conditions on more than one occasion, ensuring the installation team are familiar with the equipment, tooling and installation sequence, when the time comes to actually using the technique at the NDA site.

"It's been great to be able to play a part in what is such a major development for the nuclear industry," said Graham Cartwright, the projects director at Forth. "Our DRF has time and again proved vital in providing wet testing for key projects and being in a position to facilitate these trials has been something we are really pleased with."

Researched and written by World Nuclear News

EPRI and NEI release Advanced Reactor Roadmap

16 May 2023

The document outlines the critical strategies and support actions necessary for the successful large-scale deployment of advanced reactors. Its initial focus is on the USA and Canada, but the roadmap is designed to be a "living document" that evolves and refocuses strategies and actions as the future unfolds.

(Image: EPRI)

There is a growing consensus that both existing and advanced nuclear could play important roles in the decarbonisation of the electricity grid and other parts of the US and Canadian economies, with nuclear technology providing large amounts of firm, carbon-free energy for the decarbonisation of the electricity, transportation, and industrial heating sectors, according to independent, non-profit energy research and development organisation EPRI and US nuclear industry association the Nuclear Energy Institute (NEI).

"Advanced nuclear technology represents an option for helping achieve carbon reduction goals while producing the energy so vital to society," said Neil Wilmshurst, EPRI senior vice president of Energy System Resources and chief nuclear officer. The plan "outlines actions that could facilitate an increasing role for nuclear energy as a zero-emissions energy source in global decarbonisation efforts", he said.

The Advanced Reactor Roadmap sets out a recommended approach to help the nuclear industry fully realise the potential value of advanced reactors, with the focus on commercialising advanced reactor technologies that deliver the desired value, establishing a portfolio of advanced reactor technologies to meet a diverse set of market and customer needs, and ensuring that the commercialisation of these technologies is both cost-effective and on track to meet decarbonisation milestones. It then discusses seven "enablers" for large-scale deployment of advanced reactor technologies, including conditions related to policy, regulatory, and public acceptance, before outlining 46 industry actions to enable the timely delivery of a portfolio of products grouped under three "action pillars" of regulatory efficiency, technology readiness and project execution.

These actions address strategic priorities in areas such as licensing, fuel cycle, supply chain, construction, operation, and workforce development. They include: engaging with governments to ensure a stable supply of enriched fuel; providing recommendations to enable more timely and efficient regulatory reviews and approvals of advanced reactors; developing a skilled workforce for both existing and new reactors; and ensuring the industry is prepared to execute the first deployment projects.

Doug True, NEI senior vice president and chief nuclear officer, said there was "growing consensus" that the US and Canadian energy system must include large amounts of nuclear. "This roadmap outlines the key strategies and actions needed to enable advanced reactors to meet the market demand that is forming," he said. "There are roles, not just for industry, but also other stakeholders, like the federal government to contribute to this success," he added.

The roadmap was developed with input from multiple stakeholders, including advanced reactor developers, suppliers, utilities, the Institute of Nuclear Power Operations, NGOs and national laboratories. A steering group of industry leaders will be formed to assess the status of action items from the roadmap and ensure their completion, the organisations said.

Additional phases of the roadmap will be focused on global regions beyond North America.

Researched and written by World Nuclear News

Steel maker considers use of NuScale SMRs at its mills

16 May 2023

NuScale Power has signed a memorandum of understanding (MoU) with North American steel manufacturer Nucor Corporation to explore the deployment of NuScale's VOYGR small modular nuclear reactor (SMR) power plants at Nucor's scrap-based Electric Arc Furnace (EAF) steel mills.

An Electric Arc Furnace (Image: Nucor)

As part of the MoU, the companies will evaluate site suitability, transmission interconnection capabilities and capital costs for potential NuScale plants to be sited near and provide carbon free electricity to Nucor EAF steel mills.

In addition, NuScale will study the feasibility of siting a manufacturing facility for NuScale Power Modules near a Nucor facility.

The companies will also explore an expanded manufacturing partnership through which Nucor - the largest steel producer and recycler of any type of material in North America - would supply Econiq, its net-zero steel products, for NuScale projects.

Nucor describes Econiq as "the world's first net-zero steel at scale". It adds: "Econiq is not a single product; it is a net-zero certification, which can be applied to any product from Nucor's steel mills." The company said it achieves net-zero on Econiq products by using electricity from 100% renewable sources and by purchasing carbon offsets.

In April 2022 Nucor - which manufactures steel and steel products, with operating facilities in the USA, Canada and Mexico - committed to a USD15 million private investment in public equity in NuScale Power.

"NuScale is thrilled to take this step forward with Nucor, a company that shares our commitment to sustainability and deeply understands the role of NuScale's technology in delivering clean, reliable baseload power to support the global energy transition," said NuScale President and CEO John Hopkins. "We look forward to determining how our SMR technology can best serve Nucor's sophisticated steelmaking operations and how our companies can work together to drive a more sustainable future."

"Nucor is committed to supporting the development of transformative technologies that will deploy safe, reliable, affordable, 24/7, base-load carbon free power, like NuScale's VOYGR SMR plants," said Nucor President and CEO Leon Topalian. "Not only will Nucor's partnership with NuScale help pave the way for a zero-carbon energy future for our nation, but we will be building this new generation with the cleanest steel products made anywhere in the world."

The NuScale Power Module on which the VOYGR nuclear power plants are based is a pressurised water reactor with all the components for steam generation and heat exchange incorporated into a single 77 MWe unit. It is the first SMR design to receive approval from the US Nuclear Regulatory Commission. The company offers a 12-module VOYGR-12 power plant is capable of generating 924 MWe as well as the four-module VOYGR-4 (308 MWe) and six-module VOYGR-6 (462 MWe) plants and other configurations based on customer needs.

Researched and written by World Nuclear News

Major contract awarded for remaining Bruce refurbishment

15 May 2023

Bruce Power has awarded a CAD1.3 billion (USD1 billion) contract for fuel channel and feeder replacement (FCFR) for its remaining four Major Component Replacement (MCR) projects to Shoreline Power Group. The announcement comes as fuel loading begins at Bruce unit 6 ahead of that unit's planned return to service on completion of its MCR.

The contract means Shoreline will have done all the FCFR work for the six Bruce MCRs (Image: United Engineers & Constructors)

The new 10-year contract means Shoreline Power - a joint venture of Aecon, SNC-Lavalin and United Engineers and Constructors - is now contracted to carry out FCFR work for all six Bruce units undergoing MCR.

"We're pleased to be able to partner with Shoreline Power Group for the entirety of our Major Component Replacement project over the next decade to perform the major component replacement portion of our Life Extension Program," Bruce Power President and CEO said Mike Rencheck said. "Part of Shoreline's commitment is to deliver the next two MCRs more efficiently and cost-effectively than the previous one leveraging our lessons learned and best practices," he added.

The new contract, which covers Bruce units 4, 5, 7 and 8, comes as the first Bruce unit to undergo MCR - unit 6 - prepares to return to service, and as work continues to progress on Bruce 3, the second Candu unit at the site to undergo MCR. The MCR programme will extend the operating life of the site, near Tiverton in Ontario, to 2064.

The scope of FCFR work for all units includes internal reactor inspections, the removal and replacement of fuel channels and feeder tubes, as well as project management, construction management and field execution. Planning work for FCFR at the last four units is expected to begin in the second quarter of 2023, with construction expected to begin in the first quarter of 2025 and completion anticipated in 2032.

Aecon said its share of the contract is worth CAD1 billion. SNC-Lavalin's portion of the contract is worth some CAD173 million, and covers project management services associated with the reactor refurbishment. United Engineers & Constructors, with Aecon and Framatome, is also the Steam Generator Replacement Team (SGRT) joint venture which is contracted to replace steam generators at Bruce Units 3, 4 and 6.

Staff car park unveiled as Canadian MMR's planned location

15 May 2023

Atomic Energy of Canada Limited (AECL), Canadian Nuclear Laboratories (CNL) and Global First Power (GFP) have announced a repurposed parking lot at the Chalk River campus as the location where they plan to build and operate a demonstration Micro-Modular Reactor (MMR).

Senior leaders from AECL, CNL and GFP were joined by local elected officials, industry partners and other distinguished guests to unveil the site of the proposed reactor on 11 May (Image: AECL)

The 15 MWt (5 MWe) demonstration plant will deploy Ultra Safe Nuclear Corporation's (USNC) MMR technology at the Ontario site, which is owned by AECL and managed by CNL. It will be the first commercial deployment of private sector funded small modular reactor (SMR) technology in Canada, and is intended as a model for future SMR deployments to support remote and industrial applications.

GFP President & CEO Jos Diening said the site demonstrates the "unique suitability" of the technology to become fully integrated into remote and industrial facilities and their operations. "These are precisely the qualities that make advanced nuclear microreactors essential in decarbonising beyond the electric grid," he said.

CNL President and CEO Joe McBrearty said the announcement of the site was "incredibly exciting" for AECL, CNL and GFP and Canadians. "Once constructed, this proposed reactor can demonstrate the economics, safety and performance of a new and exciting SMR technology, giving the public confidence in this next-generation nuclear solution. Overall, I believe that this location could go down in history as one of many at the Chalk River Laboratories where first-of-a-kind nuclear technologies were brought to life," he said.

The announcement reflects a shared commitment to advancing the clean energy technologies which are critical in the fight against climate change, AECL Vice-President of Science, Technology and Commercial Oversight Amy Gottschling said. "The Chalk River Laboratories have been at the forefront of nuclear innovation for more than 70 years, and we continue to push the envelope, leveraging science to solve problems and benefit Canada and the world."

The chosen location means good access to campus utilities and to CNL's technical and operational support services. Once the reactor is operational, CNL may also be able to use the energy produced both for campus operations and research activities, the companies said.

GFP submitted an application for a site preparation licence to the Canadian Nuclear Safety Commission in 2021, and work on an environmental assessment for the project is under way. The company's project timeline currently envisages site preparation and construction beginning in 2025, subject to the necessary approvals, with operations beginning in 2027.

GFP is a joint venture launched in 2020 by USNC and Ontario Power Generation to build, own and operate an MMR at the Chalk River Laboratories site. In addition to the Chalk River project, the MMR is also under consideration for the Ontario campus of McMaster University.

USNC has also signed agreements to develop and deploy its high-temperature reactor technology in Poland, Korea, Finland and the USA.

Final licence release for reclaimed Cluff Lake mine

12 May 2023

The Canadian Nuclear Safety Commission (CNSC) has revoked the uranium mine licence held by Orano Canada Inc for the fully decommissioned Cluff Lake Project in northwestern Saskatchewan, clearing the way for Orano to transfer the site to the Province of Saskatchewan - a first for any modern uranium mine in Canada.

Cluff Lake as it is today (Image: Orano)

The project, which is some 75 km south of Lake Athabasca and 15 km east of the border with the Province of Alberta, operated from 1979 to 2002, producing more than 62 million pounds U3O8 (23,848 tU) from two underground mines and four open pit mines. The operation also included a tailings management facility, a mill and other support facilities. The Cluff Lake Project is located on Treaty 8 territory, the Homeland of the Métis, and is within the traditional territories of the Dene, Cree, and Métis people.

Cluff Lake was fully decommissioned in 2013, and has already been made accessible to Indigenous Nations and communities and members of the public for hunting, fishing, camping and harvesting. Orano now intends to transfer the site to Saskatchewan's Institutional Control Program (ICP), which was set up by the province in 2007 as part of its institutional control framework for the long-term management of decommissioned and reclaimed mine and mill sites on provincial Crown lands.

The CNSC's decision to revoke the current operating licence, under which Orano is authorised to possess, manage and store nuclear substances that are associated with the historic uranium mine and mill operations at Cluff Lake, was made after a public hearing held on 1 March, and means that the transfer of the site to the ICP can now go ahead. The commission has also exempted the Province of Saskatchewan from licensing for the site - such an exemption is required before the site can be accepted into the ICP.

"After reviewing all submissions and interventions, the commission concluded that the decommissioning objectives and criteria established for the Cluff Lake Project have been met, that the site is passively safe, and that the site will remain passively safe for the long term … the commission also concluded that exempting the Province of Saskatchewan from licensing under the NSCA (the Nuclear Safety and Control Act) for the Cluff Lake Project site will not pose an unreasonable risk to the environment, to the health and safety of persons, or to national security, nor will it result in a failure to achieve conformity with measures of control and international obligations to which Canada has agreed," the CNSC said.

"The best demonstration of responsible mining is the remediation management," Orano Mining President Nicolas Maes said, adding that the CNSC decision "is the recognition of the Orano's expertise in sustainable mine closure which is part of our DNA".

Orano Canada President and CEO Jim Corman said he was grateful both to the company's staff for their commitment to the project and their work to ensure that the land is available for local traditional use, and to the the Indigenous, Métis and other community members who shared their knowledge of the lands. "We have many employees who remember the days of working at Cluff Lake and we celebrate the successful decommissioning of the project. Work will continue with the Province to transfer the property into the Institutional Control Program," he said.

The CNSC has previously released properties at legacy uranium mining sites to provincial control, but Cluff Lake is the first decommissioned "modern" uranium mine to reach this milestone.

Researched and written by World Nuclear News

The Russian nuclear company the West can’t live without
Bloomberg News | May 13, 2023 | 

Nukem Technologies Engineering Services headquarters. (Image by Nukem, Flickr.)

Cutting the heart out of a nuclear power plant is a surgical procedure that only a few specialists are equipped to handle.


The process begins by launching plasma-torch-wielding robots into an empty pool surrounded by thick concrete walls. From there, the remote-controlled machines make circular cuts, as if slicing pineapple rings, through a 600-ton steel vessel that contains radiation generated over decades of splitting atoms. These rings are then diced into meter-long pieces and transported via secure convoy to radioactive waste repositories, where they are left to cool down — indefinitely.

Behind the scenes, scores of nuclear engineers, radiation safety experts and state regulators monitor this operation, which can cost upwards of a billion dollars and take years to plan and execute. The expertise needed to pull this off without error is why “there are only a handful of players” in the high-radiation decommissioning business, said Uniper SE’s Michael Baechler, who is supervising the dismantling of Sweden’s Barsebaeck Nuclear Power Plant.

Among the oldest and most experienced is Germany’s Nukem Technologies Engineering Services GmbH, which for decades has offered its unique services in Asia and Africa and across Europe. Nukem engineers helped contain radiation from the destroyed reactors in Chernobyl and Fukushima. They helped lead the clean-up of an atomic-fuel factory in Belgium. In France, the company devised ways to treat waste from the International Thermonuclear Experimental Reactor.

With researchers predicting that cleaning up after aging nuclear power plants will evolve into a $125 billion global business in the near future, Nukem should be ideally positioned to capitalize on the moment.

Except for one thing: the company is wholly owned by Rosatom Corp., the Kremlin-controlled nuclear giant, putting it in the center of an uncomfortable standoff.

While Germany has been vocal in urging EU countries to stop importing Rosatom’s nuclear fuel, a highly specialized commodity used for power plants, of which Rosatom is the world’s biggest exporter, authorities do not want to prevent Nukem from doing business in Germany, according to three government officials who asked not to be identified in return for discussing private deliberations. As sanctions have not been implemented, doing so would violate EU competition laws, they said.

Located in the rolling hills and orchards just east of Frankfurt, Nukem is a niche player in Rosatom’s global empire. At the same time, it exposes the fault line running through the EU’s approach to nuclear power.

Unlike Russia, which has cultivated expertise across all of the industrial processes needed to convert and enrich uranium atoms into forms usable for generating energy, Europe’s hodgepodge development of nuclear technologies has left states dependent on outside providers to fill gaps in production and services. Experts estimate it would take at least four or five years before the EU could match Rosatom’s fuel-manufacturing capacity, but even if that process were sped up, it would require more time still to replicate its global reach and array of services.

Pressure to cut Rosatom out of European supply chains has mounted since Russian forces seized Europe’s biggest nuclear power station outside the Ukrainian city of Zaporizhzhia and sent in Rosatom engineers to run it. The fact that it or Nukem, a subsidiary, haven’t been sanctioned, “should raise some serious questions,” said Darya Dolzikova, a researcher at the Royal United Services Institute.

But more than a year later, it’s still up to individual companies to decide whether to continue doing business with the energy giant. So far, many are proceeding as usual: Rosatom saw exports surge more than 20% in the year after Russia invaded Ukraine.

Unlike Germany’s seizure of Russian storage and refining assets after the war, Nukem doesn’t have as much fixed infrastructure to go after. If sanctions were to be imposed, Rosatom might simply close shop or move Nukem’s headquarters to a friendlier jurisdiction.

This has left Nukem stuck in a strange kind of limbo, as customers interested in tapping its expertise are now faced with the choice of whether to work with a Kremlin-controlled company. Its experience is particularly valuable as its 120 mostly German engineers can work across the nuclear supply chain, a huge advantage in light of the fact that more young nuclear engineers study to build new installations than tear down existing ones. The International Atomic Energy Agency in Vienna has warned of an acute shortage of decommissioning workers.

“In Europe,” said Mark Hibbs, an analyst at the Carnegie Endowment for International Peace who has been tracking the company for more than three decades, “Nukem presides over a large pool of know-how.”

But even without sanctions, traditional markets such as Lithuania and Finland have stopped working with Nukem and Rosatom, respectively. Others, including the Czech Republic, Slovakia and Bulgaria are diversifying away from Russian suppliers. On a day-to-day level, it’s gotten trickier to do business since the Russian invasion, said Nukem chief executive officer Thomas Seipolt.

Money transfers take longer, as does securing the authorizations needed to ship technologies across borders, and some customers have been hesitant to sign contracts, he said. A consulting arrangement “was paused and then cancelled following the start of the Ukraine conflict,” said Boris Schucht, chief executive officer of the fuel consortium Urenco. Due to the political situation, Nukem’s Seipolt noted, “the further development of the company” has “become uncertain.”

To avoid continued decline, “the owner is trying to sell Nukem to a strategic investor by around the middle of the year,” Seipolt said. “We are already in talks with interested parties,” he added, without elaborating on how a buyer might skirt EU financial sanctions to take a stake in the company.

If that doesn’t happen, however, the company’s future may lie outside of Europe. While sanctions against Rosatom and Nukem could choke off the immediate supply of fuel and services within the EU bloc, they’d be harder to enforce in the company’s biggest growth markets. Rosatom is already building new nuclear plants in Bangladesh, China, Egypt in Turkey, with another dozen supply contracts under negotiation. Those deals potentially lock in cash flows and political clout for decades ahead.

For now at least, Nukem is finding some of its new projects further afield. At the Xudabao Nuclear Power Plant northeast of Beijing, Nukem specialists are currently designing a waste treatment center to accommodate the two new Rosatom reactors that will go online by 2028.

“We have already signed contracts,” Nukem announced last month. Next year, Rosatom’s German subsidiary will start shipping components to China.

(By Jonathan Tirone and Petra Sorge)

WORKERS CAPITAL

Glencore’s Teck bid spurs call for Canada pensions to up equity stake

Reuters | May 16, 2023 | 

Highland Valley Copper (HVC) Operations, southwest of Kamloops in British Columbia. (Image courtesy of Teck.)

Glencore’s hostile bid for Teck Resources has galvanized some Canadian institutional investors, who have lobbied the federal government to push the nation’s biggest pension funds to lift their exposure to domestic companies, according to a presentation seen by Reuters.


The previous unreported proposal is an unusual move, but mirrors the broader nationalistic sentiment at display in Canada since the Swiss miner’s unsolicited approach for one of the country’s top mining firms by market value.

Politicians and business lobby groups have asked the federal government to block the $22.5 billion bid and Ottawa has said Glencore would face rigorous scrutiny.

Canada’s large pension funds are globally known investors, managing more than $1 trillion of savings, but their exposure to domestic equities has steadily declined over the past decade since Canadian equity markets represent just 3% of the global equity market. The Canadian pension funds have benchmarked their investments to that level, according to the presentation.

Australian pension funds have invested about 50% of their total assets in domestic equities, according to the presentation.

Last month, Teck pulled its proposal to split the company into separate coal and copper businesses after failing to secure shareholders’ support.

China Investment Corp is Teck’s single-biggest institutional investor with a 10.3% stake, and Norway’s wealth fund, Norges Bank, owns 1.52%, while Canadian pensions together hold 0.78% stake, according to Refinitiv data.

Institutional investors argue, a more influential holding would have helped Teck to pull off its plan and ended Glencore’s pursuit.

Peter Letko, vice president of Letko Brosseau, a Teck investor which was in favor of the separation plan, said the absence of Canadian pensions funds’ from “critical public companies does not help the domestic economy.”

Montreal-based Lekto said he has recently written to the federal government’s finance ministry and provincial governments urging pension funds to increase their exposure in domestic market.

The finance ministry did not immediately respond to an email query.
Pensions and politics

Quebec pension fund CDPQ declined to comment on “political and legislation matters.” All other pension funds did not respond to Reuters request for comments.

Canadian pension funds represent 30% of the total financial savings of Canadians.

“Given that so much of this capital is directed towards international investment, it risks not contributing to Canada’s economic growth,” Letko added.

Not everyone, however, agrees with this approach.

Michael Osborne, a competition lawyer at law firm Cozen O’Connor, said the more you interfere with Canadian pensions’ operations, “the more you put pension returns at risk.”

“We all know from our own pension savings…putting all of your investments in one country – whether it’s Canada or any other country – is a poor investment strategy.”

Read More: Canadian Conservatives want Glencore takeover of Teck blocked

Still, Lekto has found some backers, including Kim Shannon, founder of Sionna Investments and former board member of Canadian Committee for Corporate Governance. Shannon added that Canadian equities have generated better returns with lower risks over the past three decades.

Letko has also found support from some business leaders.

“It is really shameful that two of the biggest pension funds invested in Teck are Chinese and Norwegian,” said Pierre Lassonde, a Canadian mining entrepreneur who offered to invest in Teck’s coal assets to thwart Glencore’s effort. Lassonde is also backing Letko’s proposal.

Clement Gignac, a Canadian senator and a veteran economist, said while it is not the “business of politicians to decide which countries do the pension funds invest in,” the industry as a whole should improve disclosures about where Canadians savings are invested.

(By Divya Rajagopal and Maiya Keidan; Editing by Denny Thomas and Marguerita Choy)

Developer of Alaska’s Pebble mine raises ongoing concerns

Reuters | May 15, 2023 |

The Pebble project (Image courtesy of Northern Dynasty Minerals)

Northern Dynasty Minerals Ltd on Monday raised doubts about its ability to continue as a going concern if the company is unable to raise the necessary capital for the Pebble copper and gold mining project in Alaska.


Northern added that it is in process of exploring and evaluating the Pebble project and has not yet determined whether the project contains mineral reserves that are economically recoverable.

The project has been through a roller coaster of regulations for the past 15 years. Former US President Barack Obama opposed the project, and his successor Donald Trump ultimately did, too, after deciding it was too risky.

President Joe Biden has also long opposed the project and took steps upon taking office in 2021 to permanently protect Alaska’s Bristol Bay.

To continue operations, Northern is entirely dependent upon the existence of these economically recoverable mineral reserves and its ability to obtain financing to complete the exploration and development of the project.

As of March 31, Northern and its units had C$9.4 million ($7 million) in cash and cash equivalents for its operating requirements and working capital of C$8.1 million.

The company would require additional financing in order to progress any material expenditures at the Pebble project and for working capital requirements.

In January the US Environmental Protection Agency said it plans to take steps to block the proposed project by preventing Northern Dynasty from storing mine waste in the state’s vast watershed.

($1 = 1.3372 Canadian dollars)

(By Arunima Kumar; Editing by Eileen Soreng and Varun H K)

EXCLUSIVE: Chile mines minister clarifies controversial new lithium strategy
Cecilia Jamasmie | May 16, 2023 | 

Chile’s Minister of Mining Marcela Hernando. (Image from the Government of Chile)

A decision by Chile, the world’s no. 2 lithium producer, to tighten control over the key battery metal sector has triggered speculation on what the announced state-led public-private model will look like and how it may affect the global industry.


To address market rumours and clarify aspects of the strategy described by some as “vague”, MINING.COM spoke with Chile’s mining minister Marcela Hernando, who noted the country had announced a strategy, rather than a policy.

“It will become a public policy when it has legitimacy and it is supported by all the political forces of the country,” Hernando said.

Reaching the point of public policy, which includes the creation of a national lithium company (Enal), could take years.

President Gabriel Boric has, in the interim, enlisted two other state-owned companies — Codelco, the world’s largest copper producer, and state miner Enami — to determine how the private-public partnerships will operate.

Codelco will be initially in charge of negotiating for the state a stake in Albemarle’s and SQM’s operations. Enami, in turn, will sign up partners for new contracts. Their roles will be eventually undertaken by a national lithium company.

The government also launched on Tuesday a “Lithium and Salt Flats” committee to coordinate the various ministries and other public entities as well as regional governments taking part in the lithium development process.

The group would also act as a technical advisory body, the development office — Corfo — said in the statement.

The Chilean state has always played a major role in the mining industry. A 1979 law declared lithium to be a strategic resource, stipulating that its development was the exclusive prerogative of the nation.

Only SQM and Albemarle are currently licensed to produce lithium in the country, and in only one salt flat — the Atacama. The government wants to expand production both in Atacama and in any or all of the other 18 salt flats that have been identified.
“Selective” participation

The minister explained that the government will only seek control of the operation — via different mechanisms, not just majority participation — in projects that are considered strategic.

Currently, the only strategic lithium area is the Atacama salt flat, Hernando said. In the others, each company will negotiate with representatives of either Enami or Codelco. The result of such negotiations will be presented to a committee integrated by the ministers of mining, finance, economy and environment, the vice presidency of Corfo and the country’s President.

Hernando said the new lithium strategy contemplates three options of public-private partnership.

Brine pools and processing areas at SQM’s lithium mine on the Atacama salt flat. (Image courtesy of SQM.)

In the first one, Codelco or Enami would conduct prospecting and then negotiate the terms of development with interested parties.

The second modality will see the state partnering with a private company for the exploration stage and will negotiate the next phase with that particular company.

The last option is for the government to grant exploration licences directly to private companies and evaluate results they present.

“Our strategy seeks to help the country create an ecosystem in which more value is added to its lithium industry, especially around issues [such] as technology transfer and worker training,” Hernando said.
China, Canada interested

According to official figures, around 50 interested parties, including companies and countries, have already approached Chilean authorities to express their interest in participating in the lithium business — including China and Canada.

The country’s Minister of Economy, Nicolás Grau, told MINING.COM that Chile’s lithium policy does not give preference to any country. Rather, it opens the possibility of exploring new salt flats to any interested company.

“The conversations we have had in recent weeks make us think that when the exploration permits begin to be tendered, offers will come from companies from a variety of countries. We want to promote that diversity,” Grau said.

Chile’s Minister of Economy Nicolás Grau. 

(Image: Government of Chile.)

The minister noted that potential partners have applauded the government’s initiative as its sets up a mechanism for their entry into the Chilean lithium market, which did not exist until the policy announcement in late April.

“Something that has been highlighted is that the environmental requirements the government is putting in place are in line with the growing demands of buyers and society in general,” Grau said.

“This will give projects developed in Chile better prospects in terms of social license and acceptance of their production in international markets,” he noted.

The government will create a public research institute to develop new refining technologies, and institute lithium waste and battery recycling.

While Boric’s plan relies on the wide scale deployment of direct lithium extraction (DLE) technologies, both ministers said the state will not impose technological choices on private companies.

“Rather, we will regulate to achieve desired outcomes having into account the surrounding biodiversity,” Hernando said.

The long-term plan is to consolidate areas of oversight currently held by different public institutions, with some authorizing sales quotas and water use, under the mandates of a state-run lithium company.
Not missing the boat

While some experts reacted negatively to Chile’s new strategy, the majority of those interviewed said the announcement brings an end to a long period of uncertainty for the sector.

Strategic lawyer and business advisor at Canada’s McCarthy Tétrault, Shawn Doyle, considers the policy a rather positive turn of events for private capital keen to invest in the battery metal.

“It must be remembered that, as a result of policy paralysis, Chile has been effectively closed to new private investment in lithium for decades,” Doyle said.

Source: Reuters

Analysts from Fastmarkets believe that, if Chile fails to capitalize on the lithium boom, it would fall from the world’s second-largest lithium producer last year to fourth in 2030 after China, Australia and Argentina. They forecast the country’s share of production would shrink from almost a third to 12%.

Global demand for lithium, according to the government’s projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes.

The country’s strategic Atacama region, which is also home to vast copper mines, supplies nearly one-quarter of the globe’s lithium.

World output of lithium carbonate equivalent (LCE) was 737,000 tonnes in 2022. It is estimated to reach 964,000 tonnes this year and 1,167,000 tonnes in 2024, according to the Resources and Energy Quarterly Report by the Australian Department of Industry, Science and Resources in March.

 

U.S. Coast Guard May Try "Part-Time" Option to Boost Recruitment

Traditional recruiting options might not be the right fit for some who would otherwise consider a Coast Guard career (USCG file image)

PUBLISHED MAY 14, 2023 6:59 PM BY THE MARITIME EXECUTIVE

 

To help fill a persistent recruiting gap, the U.S. Coast Guard wants to create a new category for "part-time" service, according to Commandant Adm. Linda Fagan. It's one of the many changes and initiatives that the USCG is undertaking to make the service a more attractive option to join and work. 

When Adm. Fagan took up the post as commandant, the Coast Guard was 2,000 junior enlisteds short of its end strength target, and that number has only grown with time. At present, the service is about 4,800 people short of its goals. "We are not onboarding the full number of people that we need each week into Cape May," Fagan said at a forum at Brookings last week.  

The composition of the pool has also changed. Many of the new enlisted recruits have already been in the workforce and have completed some form of higher education or credentialing program - meaning that they have skills that could be valuable to the USCG. In years past, recruiting was geared to 18-year-old high school grads with no prior work experience or college education, and there was no system for credential recognition for new arrivals. Experienced professionals would have to start from the bottom with everyone else. 

To make better use of these skills, the Coast Guard has looked at lateral entry. "For example, say you're an aircraft mechanic and you're fully certified in the civilian community. You find you have a calling to serve and you'd like to come serve with us. We'd bring you in on a contract as an E-5 or E-6 for four years, maybe you stay, maybe you go back [to civilian life]" at the end, she explained. 

In addition, Fagan's HR team is contemplating a new, extra category for service. Right now, the Coast Guard offers active duty, reserve and civilian job opportunities. "Might there be room for some other category - I'm going to use the term 'part time' - where you've got some level of benefit but you're working three days a week instead of the 24/7/365 contract that comes now," she proposed - adding the caveat that the service is "not there yet" on this novel concept. 

Advertising to nontraditional labor markets and recruiting from a diverse pool is part of the solution too. This year, 45 percent of the cadets at the Coast Guard Academy are women, but across the rest of the organization, "we have work to do to continue to ensure that we reflect the society that we serve," said Fagan. Her goal is to ensure a high-performing, diverse workforce, in part by reducing barriers to entry and retention. A big part of this is in retooling the Coast Guard's HR system and policies, which have been more or less the same since the end of World War II.

"The mantra that I've given to the workforce team is 'eliminate barriers,'" she said.