INL sees market for microreactors in some US states

24 May 2023

There is high market potential for microreactors in US states with energy-intensive industries, nuclear-friendly laws and widespread social acceptance, according to a new report by Idaho National Laboratory (INL) examining opportunities and barriers for microreactors.

The Micro Modular Reactor design (Image: USNC)

The report - titled Microreactor Applications in US Markets - provides an evaluation of primarily state-level legal, regulatory, economic and technology implications for microreactor applications in US markets. The initial focus is on the Alaska and Wyoming energy markets serving location-specific energy needs for electricity and heat. A state-by-state evaluation of current carbon/carbon-related policies and nuclear policies is conducted to assess broader market applicability in states undergoing energy transitions.

This work is conducted as part of the Emerging Energy Markets Analysis (EMA) initiative led by INL and includes the University of Alaska, Boise State University, University of Michigan, Massachusetts Institute of Technology and the University of Wyoming.

The report summarises a US Department of Energy (DOE) Microreactor Program analysis of the market opportunities for microreactors. It evaluated several energy solutions for each profile market. 

It says that favourable conditions for microreactors include, for example, markets that are cost competitive in electricity and heat, comparable (if not better) in remote locations with diesel sources, and have low-carbon sources including wind, solar, geothermal and energy storage. The use of modular designs allow transport to remote locations by road, barge or rough airstrips. Microreactors can replace coal sites using existing infrastructure. They are suited to areas where transport costs are very high and subject to access restrictions for portions of the year due to weather.

The EMA team examined the regulatory climate in each of the 50 US states in terms of openness to nuclear power, the economic assessment of heat markets that could be important to microreactor adoption, and the potential preferences for microreactor designs.

They found that most states have either removed barriers for microreactor deployment or established carbon-reduction goals that make advanced nuclear technologies attractive. However, challenges remain, such as public perceptions about microreactors' uncertainties in terms of costs, waste and fuel management.

Microreactors are suited for remote industrial applications like seafood processing in Alaska and trona mineral mining in Wyoming, the report says.

"Alaska and Wyoming have their own niche markets, but there is commonality in the remoteness of the applications, mobile uses for microreactors in mining, and energy use for refined products derived from mined sources," said David Shropshire, an INL nuclear energy economist.

The report suggests the nuclear industry and national labs increase communication about the technology and create a clear differentiation between microreactors, small modular reactors and large reactors.

It outlines areas needing further research, including developing a deeper understanding of public acceptance or resistance to microreactors. It says there is also a need to: evaluate other possible microreactor markets including conventional mining, oil and gas extraction operations, carbon refining, ammonia production, synthetic fuels, and other industries; evaluate the cross-jurisdictional regulatory considerations for land use, siting, carbon reduction, transmission corridors and mining; research the regulatory issues associated with industrial use of microreactors, and the access to and interconnection with the grid or the ability to sell excess power into deregulated markets; examine and develop business models for using microreactor heat under different scenarios; evaluate the microreactor supply chain; and evaluate considerations for siting microreactors in northern latitudes.

"Microreactors are a new technology to many of the potential deployment sites, so it is important to promote common understanding of the barriers to market entry for both developers of the technology as well as end users," said John Jackson, national technical director of the DOE Office of Nuclear Energy's Microreactor Program. "The DOE programmes support broad availability of energy solutions to meet individual needs, and characterisation of these needs is very valuable."

US microreactor prototype prepares for testing

23 May 2023

The full-scale replica of the US Department of Energy's (DOE) MARVEL microreactor has been moved from Idaho to a facility in Pennsylvania where it will be used to test the behaviour of sodium-potassium and lead-bismuth coolants.

PCAT was loaded onto a truck for its journey from Idaho to Pennsylvania (Image: INL)

The non-nuclear prototype - known as the primary coolant apparatus test (PCAT) - was built at Idaho National Laboratory (INL) and has now been installed at Creative Engineers, Inc's (CEI) facility in Freedom, Pennsylvania,  where it will be loaded with sodium-potassium and lead-bismuth coolants for testing to gather data on the system's temperatures and coolant flow. The PCAT will be electrically powered during testing, which DOE said could begin as soon as July.

The Microreactor Applications Research Validation and Evaluation (MARVEL) sodium-potassium-cooled microreactor will generate 100 kW and is expected to begin operation at INL's Transient Reactor Test Facility by the end of 2024. It will be used to develop regulatory approval processes, test microreactor applications, evaluate systems for remote monitoring, and develop autonomous control technologies, and to explore and test microreactor capabilities for applications such as thermal storage, water purification and district heating. It will also be connected to INL's first nuclear microgrid.

The non-nuclear prototype has been installed into a two-story frame at CEI's facility (Image: INL)

"Validation of our physics models is critical to nuclear quality assurance for any new reactor development project," MARVEL Chief Design and Project Lead Yasir Arafat said: "PCAT will generate this first-of-a kind-data for validating our thermal-hydraulics simulation tools and quantifying uncertainty for liquid metal thermal reactors, like MARVEL."

The PCAT system is likely to remain at CEI to provide further simulation and testing until the MARVEL microreactor itself begins operation, after which it may be returned to INL to be used for additional research to help advance microreactor technologies.

Fabrication of long-lead components are already underway for the MARVEL microreactor, which DOE said will be the first new test reactor at INL in more than four decades.

Researched and written by World Nuclear News

BWRX-300 meets Polish safety requirements, says regulator

24 May 2023

GE Hitachi Nuclear Energy's BWRX-300 small modular reactor (SMR) technology is compliant with Polish nuclear safety and radiological protection standards, the president of the National Atomic Energy Agency (Państwowa Agencja Atomistyki, PAA) said in a general opinion.

The general opinion (Image: OSGE)

Orlen Synthos Green Energy (OSGE) - a joint venture between chemical producers Synthos Green Energy (SGE) and PKN Orlen - submitted an application to the PAA in July 2022 for an assessment of the BWRX-300.

According to the PAA, a general opinion, "as a pre-licence instrument, may apply to any solutions planned by the investor, including design, technological and organisational solutions, which will have a direct impact on the issues of nuclear safety and radiological protection". The opinion aims to determine whether the planned organisational and technical solutions comply with the requirements of nuclear safety and radiological protection resulting from the provisions of the country's Atomic Law Act, or whether the investor should make appropriate modifications.

As part of the works on the opinion, the PAA analysed such aspects of the BWRX-300 technology as hazard identification and reactor protection against internal and external hazards, requirements for the reactor control room, safety containment systems and classification of safety systems, reactor core design requirements and electrical systems. Solutions for control and measurement apparatus, waste and nuclear fuel management systems were also analysed. In total, OSGE submitted documentation covering 13 areas of the BWRX-300 technology.

The technical documentation that OSGE submitted is based on documentation prepared by GEH for the Canadian Nuclear Safety Commission (CNSC) as part of the Vendor Design Review Phase 1 and Phase 2 process - a pre-license technology review. The CNSC issued a positive decision in March this year, making the BWRX-300 the first SMR to complete such a process in Canada.

In an opinion issued on 23 May, the president of the PAA concludes that the assumptions adopted in the design of the BWRX-300 technology are correct and meet the requirements of Poland's Atomic Law and selected regulations on the safety of nuclear facilities. The conclusions published by the PAA will be taken into account in the standard and detailed design process of the BWRX-300 reactors that are planned to be constructed in Poland.

The PAA president also indicated in the general opinion one technical assumption of the BWRX-300 reactor technology, which must be re-verified before starting the proper administrative process related to obtaining permits.

"The general opinion received by OSGE concerning the BWRX-300 technology is an important first step on the road of licensing works necessary for the construction of GEH's modular nuclear power plants in Poland," said OSGE CEO Rafał Kasprów. "It should be noted that following the technical collaboration agreement signed in Washington in March this year, a complete power plant design based on the BWRX-300 technology - including a nuclear island - is being developed in the US. The project will take into account all regulatory requirements and technical standards required by Polish law."

"The BWRX-300 is the first SMR technology to have completed the general opinion phase of the PAA's rigorous pre-licensing process, an important step in the deployment of this technology in conjunction with OSGE," said Sean Sexstone, executive vice president of advanced nuclear at GEH. "OSGE and GEH will continue dialogue with PAA to evaluate local requirements and look forward to the next steps of regulatory engagement."

In December 2021, GE Hitachi, BWXT Canada and SGE signed a Letter of Intent to cooperate in deploying BWRX-300 SMRs in Poland. SGE, together with its partners, aims to deploy the first BWRX-300 in 2029 and to have at least 10 of the reactors in operation by the early 2030s. In April, OSGE submitted applications to Poland's Ministry of Climate for a decision-in-principle on the construction of power plants based on BWRX-300 SMRs at six locations.

PKN Orlen - which holds holds the exclusive right to use the BWRX-300 in Poland - will announce 13 more locations for SMR plants, the Polish Press Agency reported today. The company's CEO, Daniel Obajtek, said work was under way to assess further locations for SMRs and added that some, after initial analysis, did not qualify "for further steps".

According to the latest survey conducted by IBRiS on behalf of PKN Orlen, 57% of respondents believe that modern nuclear technologies are safe and 58% of respondents consider SMRs as a source of stable energy supply. A similar percentage believe that at least several SMRs are needed in the country and that they should be one of the pillars of Poland's energy transformation. In the towns that have been pre-selected by OSGE as locations for the construction of the first power plants of this type, the approval for investing in an SMR power plant is even higher.

"Small modular reactors are primarily a source of stable, zero-emission and safe energy that will facilitate the energy transformation in Poland," Obajtek said. "The results of the IBRiS survey prove that this is also understood by the majority of Poles who support the SMR technology and would even agree to the construction of such a power plant in their close vicinity. The conducted study is a solid basis for the dialogue that we will want to conduct with local communities in each of the potential locations for such investments."

Researched and written by World Nuclear News

Jacobs and Manchester University collaborate on robotics research centre

25 May 2023

The Centre for Robotic Autonomy in Demanding and Long-lasting Environments will research new technologies for sectors including nuclear decommissioning, energy generation and space.

A robotics specialist at work (Image: Jacobs)

Jacobs is putting forward USD4.6 million, with the rest of the USD11 million over five years coming from the University of Manchester, which is in the northwest of England, and the UK Engineering and Physical Sciences Research Council's Prosperity Partnerships programme.

The new centre's research will cover mechatronics, software "and how communities and regulators will engage with future robotic systems". Jacobs will have the opportunity to commercialise technology developed at the centre which it says could bring a "step-change impact to clients" in areas including nuclear power and decommissioning "where robust and reliable autonomous robotics are crucial for efficient asset management and operations".

Centre Co-director Professor Barry Lennox said the new centre "will allow the university's recently established Manchester Centre for Robotics and AI to build a relationship with one of the leading organisations involved in applied robotics, helping us to progress our fundamental research in this area and to deliver impact from the robotic and AI systems that we are developing".

Jacobs Energy, Security & Technology Senior Vice President Karen Wiemelt said: "Robotics is already a core strength of Jacobs' work in the energy and space sectors and this research collaboration will enable us to develop advanced technologies to help achieve net zero targets, such as autonomous inspection and repair systems to extend the life of water and energy networks, roads, bridges and railways."

Staff from Jacobs will support 12 PhD students conducting research and developing prototypes at Manchester University and at Jacobs' robotics laboratories in Warrington, which is about 20 miles west of Manchester.

Researched and written by World Nuclear News

Refurbished Candus make headway towards restart

25 May 2023

Fuel loading has been completed at Bruce 6, keeping the project on track to resume operation later this year. Meanwhile, Canada's nuclear regulator has given the go-ahead for Ontario Power Generation (OPG) to restart Darlington 3.

Darlington 3 reactor face (Image: OPG)

Canadian Nuclear Safety Commission (CNSC) Executive Vice-President and Chief Regulatory Operations Officer Ramzi Jammal notified OPG by a letter dated 20 May that the regulator had concluded that OPG has met all its requirements for the removal of the second regulatory hold point for the project, allowing the refurbished reactor to leave the so-called guaranteed shutdown state, or GSS. "OPG may now proceed with surrendering GSS to restart the refurbished reactor at low power for testing and verification," Jammal said.

This follows the regulator's removal of the first hold point last December, allowing OPG to proceed with fuel loading at the reactor. Hold points are mandatory checkpoints where CNSC approval is required before the licensee can move on to the next stage of the process to return the unit to operation. Two further regulatory hold points remain before Darlington 3 can reach criticality and return to service.
 
Unit 3 is the second of four Candu reactors at the site to undergo refurbishment in a project with a 10-year execution phase, following unit 2 which returned to service in April 2020. Refurbishment of Darlington 3 began in September that year and is slated for completion in the first quarter of 2024. Refurbishment of unit 1 began in February this year, with completion expected in the second quarter of 2025, with refurbishment of Darlington 4 scheduled to begin in the third quarter of 2023.

Bruce fuel loading

Bruce Power announced that fuel loading at Bruce 6 has now been completed ahead of schedule. This follows CNSC's removal of the first regulatory hold point for that project on 10 May.

"Operations and Maintenance crews loaded 5,760 fuel bundles into the reactor core, safely completing the task ahead of schedule. Each fuel bundle contains 37 fuel rods, which are packed with Canadian-made uranium oxide pellets from Bruce Power partner Cameco. One bundle produces clean electricity that is equivalent to 400,000 kg of coal or 400,000 cubic metres of natural gas," the company said.

The unit is the first of six at the Ontario site to undergo refurbishment between 2020 and 2033. Bruce 3 became the second unit to begin the process - referred to as Major Component Replacement, or MCR - in March this year when it was taken offline for defueling.

The multi-billion dollar refurbishment projects ensure a further 30 years of operation for each Candu reactor.

Ontario urged to 'seize the moment' for new nuclear

24 May 2023

As a team at Ontario Tech University launches a new "Ontario-centric" research project to evaluate the economics and environmental impacts of low-carbon energy technologies including small modular reactors (SMRs), a new report from Canadians for Nuclear Energy says the province should "seize the moment" by building new Candu technology now.

FEAS researchers Jennifer McKellar, Kirk Atkinson and Xianke Lin, pictured in the university's Energy Research Centre (Image: Ontario Tech University)

Ontario is poised for rapid growth in electricity demand but does not have the capacity to meet it, grassroots non-profit organisation Canadians for Nuclear Energy finds in The Case for CANDU. "Homegrown" Candu reactor technology "is far ahead of other options in terms of local economic benefit, fuel security, project risk mitigation, and a proven track record of success", the report finds, and a "window of opportunity" created by reactor refurbishment projects that are already under way "offers a smooth onramp to new builds".
 
Candu pressurised heavy water reactors offer the lowest risk and highest benefit large nuclear option for Canada, the organisation argues. "Lowering project risk are decades of construction and maintenance experience, a fully developed supply chain and trained workforce, proven economics, and ongoing success with new-build-scale refurbishments. Meanwhile, decades of affordable power, uninterrupted fuel supply, successful exports, local jobs, community benefit, and a track record of decarbonisation prove that CANDU will meet the strictest criteria for new supply once built and will continue to do so for generations," it says.
 
Under current policy, Ontario's Independent Electricity System Operator (IESO) expects demand to increase by 60 TWh per year by 2043, enough to require adding ten new Candu reactors to the existing fleet of 18, the report finds. The province should consider building new Candu capacity alongside the planned BWRX-300 SMR at the Darlington New Nuclear Site, as well as beginning site development to support ten new Candu units, it recommends.
 
"Ontario faces energy challenges for which it has a proven solution and the opportunity to act," Canadians for Nuclear Energy President Chris Keefer said. "The pieces are in place. All that remains is to take the first step. To secure affordable energy for present and future generations, let's seize the moment and build new CANDU nuclear now."

The organisation has launched a petition urging the Government of Ontario to take action, including amongst other things by developing new sites for Candu construction, exploring the placement of two new Candu units at the Darlington New Nuclear Site, and seeking federal government support for future Candu projects.

SMR study

"No energy technology is inherently perfect: there are always going to be pros and cons," Jennifer McKellar, associate professor at Ontario Tech University's Faculty of Engineering and Applied Science (FEAS) said as the university announced the start of its study on the environmental impact of low-carbon electricity generation. The two-year investigation, jointly funded and supported by Ontario Power Generation (OPG) and not-for-profit organisation Mitacs, will apply life cycle assessment to consider all the impacts of technologies including lithium-ion battery technologies, SMRs, solar photovoltaics and wind turbines.
 
"For example, solar photovoltaics (PV) do not create carbon dioxide emissions during actual electricity generation, but the land requirements for their deployment can be significant. Similarly, both PV panels and wind turbines require critical minerals. It is important that we have a complete picture," McKellar, one of the project leaders, said.
 
Life cycle assessment considers impacts from the extraction of raw resources through to the final management of all waste, and this study will be one of the first to undertake such a comprehensive analysis for an SMR, Kirk Atkinson, director of the university's Centre for SMRs and an associate professor at FEAS, said. "Although we have a good handle on what SMR environmental performance will look like, this study will examine the details," he added.
 
"Our collaborative study with OPG and Mitacs Accelerate will be unique in that the analysis is an Ontario-specific examination of these four technologies, simultaneously," FEAS Assistant Professor Xianke Lin said. "This means we will be able to compare across technologies in a way that would not be possible if all four technologies were studied separately by four different researchers. This ensures a consistent and level playing field."

Researched and written by World Nuclear News

Canada was built on the back of a train

Opening up access to inhospitable regions, allowing transport in great quantities, distances; Canada owes itself to trains North of 60 Mining News - May 5, 2023

Wikimedia Commons; Manfred Kopka

A replica of the first locomotive to operate in Canada, the Dorchester, unveiled during the 1986 World Exposition on Transportation and Communication or Expo 86, it was renamed the John Molson after the man who first brought railways to the Great White North.

While the journey west during the frontier days often paints a picture of strife and hardship, not every tale was filled with sorrow and loss. Although covered wagons were definitely a thing, the journey toward greener pastures became much less arduous as steamboats and stagecoaches followed routes mapped by the earliest pioneers. However, it was the coming of the railroad that increased the speed of the trek, and its effectiveness in travel persists even today.

For much of the time during the late American frontier, brave hopefuls made the journey to the West; while this period lasted from the early 1600s to just after the turn of the 20th century, toward the end, early renditions of modern amenities began to appear.

Along with the general assumption of unruly, unkempt, and uncivilized lifestyles, travel by horse and wagon seems to have been permanently etched into the minds of everyone for this period. Yet, most may not know that the first railroad built in North America dates back to 1830.

While the allure of owning land drew the most migrants to the coast, it was ultimately the belief in manifest destiny – the God-given right for westward expansion – and economic promise that convinced settlers to seek their fortunes. Pair that with the first rumblings of gold and silver being discovered mid-century, and the inevitability of colonization was most assuredly guaranteed.

However, while the dramatic flair of the Oregon Trail further instilled a bitter and knife's-edge trip rife with disease and storms, by 1850, railways were far more common and thus, travel was not nearly as restricted.

Nevertheless, this story is about travel across the North and Canada's 100-year passage from a single railroad to its own transcontinental success and eventual dominance in North American train systems.

Canada's first railroad

Although the task of surveying and the eventual construction of the first American railroad – a whole 14 miles (22.5 kilometers) of track from Frederick, Maryland, to Point of Rocks, Maryland – it was shortly after that Canada followed suit with the construction of the Champlain and St. Lawrence Railroad (C&SL) which connected La Prairie, Quebec, with St. Johns (now Saint-Jean), Quebec, in 1836.

This 16-mile (26 kilometers) line was built as a four-foot 8 1/2 standard gauge railway, with rails consisting of 6-inch pine logs, joined by iron splice plates and bolts laid across wood crossties. The pine rails were then protected by iron straps spiked to the upper surface. While rudimentary, these rails remained unchanged until the 1850s, being replaced with entirely iron rails.

Financed by Montreal entrepreneur and brewery owner John Molson, C&SL was intended to become a portage to connect the St. Lawrence River valley with Lake Champlain, which ultimately cut travel time between Montreal and New York.

Like British North America's first railway, its first locomotive arrived in Montreal that same year. Named the Dorchester, it was constructed by Robert Stephenson, son of George Stephenson, who is historically renowned as the "Father of Railways."

Nicknamed the "Kitten" by those who noticed its uneven "skittish" gait – a result of its short wheelbase, which came from its wood-burning 0-4-0 design. This was the 127th locomotive built by Stephenson. Trial runs took place at night to avoid frightening the public, and with its state-of-the-art engine, this train, no larger than a school bus, topped at a whopping 30 miles (48 kilometers) per hour.

The C&SL opened to great fanfare on July 21, 1836. Over 300 people crowded the passenger cars in La Prairie station for its first run. Unable to handle such a load, the two first-class coaches carrying loftier guests were uncoupled and hauled by the locomotive while the remaining cars were pulled by horse.

With the wonder of locomotion now revealed to the Canadian public, a different fever overtook the northernmost North American country, and the hope of traveling the breadth of Canada was suddenly a reality.

Trains made northern mining possible

With the second-ever railway built in Canada after C&SL being used for coal transportation from Nova Scotia, it was quickly understood the benefit of hauling natural resources by train.

However, due to the very nature and size of Canada, to this day, it is still difficult to access and transport natural resources, especially from mining, a mainstay of the northern nation's economy.

Approximately 75% of the world's mining companies are headquartered in Canada, with Toronto being the financial center for the mining industry, and Vancouver being considered the mining capital of the world.

Mining is so prevalent in Canada's economy that entire towns and transportation systems have been constructed solely for easy access to those resources.

A prime example is the Pine Point zinc mine in Canada's Northwest Territories.

After the presence of lead south of the Great Slave Lake was discovered in 1898 by prospectors on their way from Edmonton to the gold fields of the Klondike, the issue of how to claim this orebody immediately became evident.

Although the land saw some initial work, it would not be until the 1950s that the Consolidated Mining and Smelting Company or Cominco (now Teck Resources), principally controlled by the Canadian Pacific Railway Company, would begin an intensive program of drilling that proved the presence of a substantial body of lead-zinc ore.

Declining zinc-lead ore in southern British Columbia, and the prospect of having to import ore from abroad for its smelter, compelled Cominco to send a proposal to Parliament seeking financing and construction.

Aimed at facilitating shipment of lead-zinc ore from the Pine Point Mine, the company would operate from 1965 until it shuttered operations in 1988.

Located on the south shore of the Great Slave Lake between Hay River to the west and Fort Resolution to the east, this massive lead-zinc deposit lies within the boundaries of Northwest Territories.

In its time, the mine produced and shipped roughly 14 billion pounds of zinc and 4 billion lb of lead from around 64 million metric tons of ore averaging about 10% zinc equivalent.

Initially called the Great Slave Railway, which connects Grimshaw, Alberta, to the mine, at the time, it was made part of the then-Crown corporation CN Rail. Later, the line was sold by CN Rail to become a short line named the Mackenzie Northern Railway but was later reacquired by CN in 2006. Today it is officially known as the Meander Subdivision.

Extending 602 miles (969 kilometers), the Meander Subdivision is now the northernmost trackage of the contiguous North American railway network.

With operations being picked back up again at Pine Point by now-owner Osisko Metals, a preliminary assessment of the value of the mine suggests it still hosts 15.8 million metric tons of indicated resource averaging 4.17% zinc and 1.53% lead, plus 47.2 million metric tons of inferred resource averaging 4.43% zinc and 1.68% lead.

This translates to a present mine that could produce an average of 329 million lb of zinc and 141 million lb of lead annually over a 12-year mine life. While these numbers don't compare to 1960s-era mining, it is still a substantial resource – which is made infinitely more accessible due to the existing railway.

Canada was built on the back of a train

The Canadian railway system saw several expansion booms throughout the last century. Much like the gradual growth of civilization from homesteaders that settled in rural areas, which would eventually grow into towns and then possibly cities; an initially disconnected rail system was gradually integrated with other systems that eventually spiderwebbed into the state it is today. However, sometimes explosive growth isn't always a good thing.

With the hunger whetted, heavy expansion would happen due to the Railway Guarantee Act of 1849, which supplied bond returns on all railways over 75 miles (121 kilometers). This led to the rapid expansion of the railway system in Canada; however, it also led to excessive growth as many unnecessary lines were built just to claim the government payment.

Many Canadian railways were gradually brought together under larger conglomerates, but by the end of the First World War, the sudden and decisive financial collapse of these corporations created a severe threat to Canadian infrastructure and economy.

This ultimately proved disastrous for government finances as well, all but bankrupting the Canadas through subsidies.

Around the same time, the largest train company, the Grand Trunk Railway, was vastly mired in debt with the wonton construction of railways and the purchasing of smaller entities. With Grand Trunk defaulting on its debt and the Canadian government unable to pay the promised subsidies, a bargain was struck, 'we'll take your railway; you don't have to pay.'

This essentially squared each other away from having to pay the other.

In addition to setting the standard for the first nationalized railway, the Grand Trunk was also one of the main factors that pushed British North America towards Confederation. Hence, without trains, the present Dominion of Canada would perhaps be an entirely different government today.

This nationalization and consolidation process produced the Canadian National Railways. The American Great Depression, however, led to a decline in rail traffic, and the sudden reversal of this during World War II left railways with overtaxed, aging, and poorly maintained infrastructure.

Canadian National Railway Company

As the largest train company in Canada, the Canadian National Railway Company was privatized in 1995. Becoming a publicly traded company allowed it to expand outside Canada's borders, purchasing Illinois Central Railroad and Wisconsin Central Transportation, among others.

Despite this, toward the end of the 1950s, railways began to transition toward diesel trains. Nevertheless, ridership on passenger trains declined postwar, leading railways to pursue their abandonment. Yet the necessity for transporting goods never went away.

Even now, after nearly 200 years, the infrastructure is still needed throughout the North. Much of Canada's northern territories aren't viable due to a lack of infrastructure. The same can be said for Alaska. Yet perhaps due to the present energy transition, mining may become something to ally with rather than resist as it is the only thing that will provide the necessary quantities of materials needed for clean energy technologies.

One thing is certain, though – Canada would not be anything close to what it is today without railways.

CN Railway recently celebrated its 100th anniversary in 2019. To commemorate its long history, the company put together a digital book of its journey. You can read it here.

https://plawiuk.blogspot.com/2022/10/books-agony-and-ecstasy-of-vancouver.html

From Russia with gold: UAE cashes in as sanctions bite

Reuters | May 25, 2023 |

Stock image.

The United Arab Emirates has become a key trade hub for Russian gold since Western sanctions over Ukraine cut Russia’s more traditional export routes, Russian customs records show.


The records, which contain details of nearly a thousand gold shipments in the year since the Ukraine war started, show the Gulf state imported 75.7 tonnes of Russian gold worth $4.3 billion – up from just 1.3 tonnes during 2021.

China and Turkey were the next biggest destinations, importing about 20 tonnes each between Feb. 24, 2022 and March 3, 2023. With the UAE, the three countries accounted for 99.8% of the Russian gold exports in the customs data for this period.

In the days after the Ukraine conflict started, many multinational banks, logistics providers and precious metal refiners stopped handling Russian gold, which had typically been shipped to London, a gold trading and storage hub.

The London Bullion Market Association banned Russian bars made from March 7, 2022, and by the end of August, Britain, the European Union, Switzerland, the United States, Canada and Japan had all banned imports of Russian bullion.

The export records show, however, that Russian gold producers quickly found new markets in countries that had not imposed sanctions on Moscow, such as the UAE, Turkey and China.

Louis Marechal, a gold sourcing expert at the Organisation for Economic Co-operation and Development said there was a risk Russian gold could be melted down and recast and then find its way back into US and European markets with its origin masked.

“If the Russian gold comes in, is recast by a local refiner, sourced by a local bank or trader and then sold on into the market, there you have a risk,” he said. “This is why carrying out due diligence is instrumental to end buyers wishing to ensure they respect sanctions regimes.”

The UAE government’s Gold Bullion Committee said the state operated with clear and robust processes against illicit goods, money laundering and sanctioned entities.

“The UAE will continue to trade openly and honestly, with its international partners, in compliance with all current international norms as set down by the United Nations,” it said.

Thriving gold hub

In a bid to further isolate Russia, Washington has warned countries, including the UAE and Turkey, they could lose access to G7 markets if they do business with entities subject to US sanctions.

The data reviewed by Reuters does not suggest there has been any violation of US sanctions by those countries.

The US Treasury, whose Office of Foreign Assets Control enforces sanctions, did not respond to requests for comment.

The shipments in the customs data, supplied to Reuters by a commercial provider, show exports of 116.3 tonnes between Feb. 24, 2022 and March 3 this year, although consultant Metals Focus estimates Russia produced 325 tonnes of gold in 2022.

The rest of the gold dug in Russia likely either stayed in the country or was exported in transactions not included in the records. Reuters was unable to determine what proportion of Russia’s total gold exports were covered by the data.

Most of the Russian gold shipments to China went to Hong Kong. China’s Ministry of Foreign Affairs said the country’s cooperation with Russia “shall be free from disruption or coercion from any third party”.

Turkey’s finance ministry did not respond to requests for comment. The Russian government, customs authority and central bank did not respond to requests for comment about gold exports.

The shift in Russian exports away from London is not seen as a major blow as the hub is not reliant on Russia. In 2021, for example, gold from Russia accounted for 29% of London’s imports but in 2018 it made up just 2%, British trade data shows.

The UAE, meanwhile, has long had a thriving gold industry. Trade data show it imported about 750 tonnes of pure gold a year on average between 2016 and 2021 – meaning the shipments in the Russian records would only account for about 10% of its imports.

The UAE is a major exporter of bullion and jewellery.

Discount prices

The manager of one company that shipped large amounts of Russian gold to the UAE told Reuters that Russian firms had been selling bullion there at a discount of about 1% to global benchmark prices, offering an incentive to trade.

The manager, who spoke on condition of anonymity, said most of the gold his firm shipped to the UAE was destined for refineries, where it would be melted down and recast.

Reuters asked four of Russia’s largest gold miners for comment. Nordgold and Norilsk Nickel declined to comment. Polyus and Polymetal did not respond.

In many cases, the customs records show only shippers or traders involved in the transactions, not the end buyer, which could be a refiner, jeweller or investor.

The records show the biggest handler of Russian gold exported to the UAE was Temis Luxury Middle East, a Dubai subsidiary of French logistics firm Temis Luxury involved in the shipment of 15.6 tonnes valued at $863 million from April 2022 to March 3.

Broca Houy, head of compliance at Temis Luxury Group, said the company “fully complies with the laws and regulations of the United Arab Emirates for freight forwarder business”.

He said Temis did not buy Russian gold and only accepted transport orders from operators not subject to US sanctions.

Asked about the shipments, France’s finance ministry said it would not comment on individual cases but it was very committed to the application of sanctions.

European sanctions do not typically apply to overseas subsidiaries, so European firms whose subsidiaries were involved in shipments of Russian gold to the UAE, Turkey or Hong Kong would not have necessarily broken any laws, said Tan Albayrak, a sanctions lawyer at Reed Smith in London.

The second-largest handler of Russian bullion in the UAE, with involvement in shipments of 14.6 tonnes worth $820 million, was logistics firm Transguard, part of the Emirates Group, the airline-to-hotels company owned by the Gulf state’s wealth fund.

Emirates said it had not bought any Russian gold, operated in full compliance with applicable laws and had now stopped transporting it.

“Due to recent regulatory developments, Transguard is no longer providing logistics services pertaining to shipments of gold to or from Russia,” it said.

In Hong Kong, most Russian gold shipments were handled by Vpower Finance Security Hong Kong Ltd, a Chinese logistics company. It was involved in the import of 20.5 tonnes of gold worth $1.2 billion between May 2022 and March 3, the records show.

Vpower Finance Security did not respond to requests for comment.

(Reporting by Peter Hobson; Additional reporting by Layli Foroudi in Paris and Beijing Newsroom; Editing by David Clarke)

Conflict brings Sudan’s lucrative official gold trade to a halt

Bloomberg News | May 22, 2023 | 

Sudan. (Reference image by UNAMID, Flickr).

Sudan’s official gold industry, the country’s largest revenue earner, has totally collapsed due to a spiraling month-old conflict in the North African nation, the head of the state-run mining company said.


Mubarak Ardol, general director of the Sudanese Mineral Resources Limited Co., said exports have ground to a halt, processing equipment has been damaged and the headquarters of several gold companies have been looted in the capital, Khartoum. Sudan officially exported 34.5 tons of gold worth over $2 billion last year.

But Ardol said it’s doubtful “even an ounce” has left the country since fighting between Sudan’s army and the paramilitary Rapid Support Forces broke out on April 15. More than 600 people have died and thousands more have been injured since, according to the World Health Organization.

Read More: How a sanctioned Russian company gained access to Sudan’s gold

Morocco’s most valuable metal miner, Managem, has halted production at its northeastern Wadi Gabgaba gold mine and also repatriated its workers, local media outlet Medias24 reported. The stock of the company fell by as much as 13.7% after the start of the violence, although it later recouped some of those losses.

Although both warring parties signed an agreement to protect civilians and facilitate the delivery of humanitarian aid last week in Jeddah, Saudi Arabia, fighting has continued to rage, according to interviews with residents and internal UN security documents seen by Bloomberg.

System shuttered

Ardol, whose job is to regulate and enforce safety standards for the Sudanese gold market, said that while producers are still extracting gold ore, key processing sites have been destroyed by the conflict while the financial and customs systems have shut down.

“From upstream to downstream, all of it is now damaged,” he said by phone from Sudan. “People are not able to export due to the process of sending the money. The banks are closed, the central bank is closed, the refinery is not accessible.”

Gold is an important revenue source for Sudan’s government, via companies including Australia’s Perseus Mining and Dubai-based Alliance for Mining Co. Ltd. But the vast majority of its production is smuggled out of the country, usually to foreign processing centers, according to Sudan’s finance ministry.

Both the RSF and the army have major stakes in Sudan’s gold industry and are accused by activists and rights groups of smuggling large amounts of illicit gold outside the country. The Russian mercenary company Wagner Group has also been linked to a gold processing facility north of Khartoum.

But it is unclear whether either side has been able to move the minerals out from remote air fields to fund their operations.

While the authorities in Khartoum stress the security forces control the country’s frontiers, “the smuggling of vehicles, alcohol, drugs, cosmetics and gold, as well as trafficking in arms and persons” is widespread across Sudan’s borders with South Sudan, the Central African Republic, Chad and Libya, a United Nations panel said in a report last year.

(By Simon Marks, with assistance from Souhail Karam)

Polymetal plays down scope of sanctions as London-listed shares tank

Reuters | May 22, 2023 | 

Svetloye mine – Image courtesy of Polymetal.

Gold producer Polymetal International PLC sought to play down the impact of US sanctions on its Russian operations as its London-listed shares tanked on Monday, emphasizing that the restrictions did not affect its business outside Russia.


The US State Department on Friday included Polymetal’s Russian business and Polyus – the largest gold producers in Russia – on its latest list of sanctions targets, aiming to punish Moscow for its invasion of Ukraine.


Polymetal’s Russian operations accounted for around two-thirds of the group’s revenue in 2022.

Shares in the company, which closed 8.4% lower on Friday, slid even further on Monday, at one point losing almost 40% on the day. By 1016 GMT they were around 12% lower.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) on Friday placed blocking sanctions on Russia-based JSC Polymetal and any entities in which it holds a majority stake, but made clear that the sanctions did not target Jersey-based Polymetal International.

“JSC Polymetal is a legal entity registered in the Russian Federation which acts, amongst other things, as the holding company for the group’s assets located in the Russian Federation,” Polymetal International said in a statement.

“(It) does not have any operations outside of the Russian Federation.”

“Neither the company, its subsidiaries nor its affiliates are designated as sanctions targets of the UK or the EU, with the exception solely of the company’s Russian subsidiaries.”

Polyus on Monday said it considered all sanctions imposed on it and its subsidiaries as unjustified, and would examine the decisions and whether it should appeal.

Polymetal is seeking to re-domicile from Jersey to Kazakhstan and shift its primary listing from London to Astana to allow it to advance plans to separate its Russian and Kazakh businesses next year.

On Monday Polymetal International said it remained committed to pursuing its re-domiciliation, which is subject to shareholder approval.

(By Alexander Marrow; Editing by Jan Harvey)