AFRICA VS LATIN AMERICA
The world has a new no. 2 copper exporter

Bloomberg News | June 1, 2023 |

Members of Kamoa-Kakula’s multinational team of geologists and engineers (Credit: Ivanhoe)

The Democratic Republic of Congo displaced Peru as the second-biggest copper exporter last year, official data from the two countries show, in a changing of the guard for the mining industry.


While the numbers used in the chart below refer to shipments rather than production, the shift in positions underscores a couple of important trends. Firstly, an up-tick in social unrest and political uncertainties are constraining investment in South America, as more money flows into Africa’s rich ore-bodies.




Peru had sat comfortably as the biggest copper producer and exporter after neighboring Chile for years thanks to a wave of projects earlier this century that has largely dried up. In recent years, political upheaval and community protests have helped keep the country’s copper exports fairly flat.

Congo, meanwhile, has been making huge strides thanks largely to the high-grade ore now being tapped by Ivanhoe Mines Ltd. in Kamoa-Kakula. Congolese exports have more than doubled since 2018 to 2.4 million tons. Peru shipped 2.2 million tons.

While copper mines in Congo have also faced disruptions, such as a prolonged export halt at Tenke Fungurume, they haven’t halted its growth.

It’s unclear if this is a temporary blip or a more long-lasting reordering. Much will depend on whether Peru can garner political consesus to bring on new projects and prevent disruptions.

In terms of production, the two nations are neck and neck, according to Peru’s mining ministry and Congo’s central bank. Consulting firm Wood Mackenzie said this week that Congo would only fully take over Peru in terms of production by 2026 or 2027.

(By Marcelo Rochabrun and Michael J. Kavanagh)

History of mining:  Mining the Americas in deep time

John Sandlos| May 31, 2023 |  https://www.canadianminingjournal.com/

If you ask the average person in the street when they think the history of mining begins in the Americas, they might pinpoint the throng of the forty-niners who migrated to California in search of gold (bequeathing a name to San Francisco’s NFL team). Or perhaps they would recall the mad dash northward to the Klondike in 1898, made famous in the fiction of Jack London, the poetry of Robert Service, the popular history of Pierre Berton, and even a classic film by Charlie Chaplin. Some might go as far back as the large-scale precious metal mines that brought the Spanish to Central America in the 16th century. But almost nobody would acknowledge that mining in the Americas originated thousands of years ago as a critical cultural and economic activity of Indigenous People.

Copper Inuit, or Kugluktukmiut, digging for copper samples in 1929 at Husky Creek near Kugluktuk, on the Central Arctic coast in the territory of Nunavut (formerly the Northwest Territories.). Library and Archives Canada: (PA-099933). The image is printed with permission from Formac Lorimer Books.

Mining on this continent has extremely deep historical roots. The oldest known mine in present-day Canada is a quartzite quarry on Manitoulin Island, dating back approximately 10,000 years. In Labrador, Indigenous People of the Maritime Archaic cultures quarried for silica-based chert, developing extensive regional trade networks for this valuable tool-making material. Indigenous People in the Lake Superior region mined native (i.e., mostly pure) copper as far back as 6,000 years ago, stripping overburden, digging trenches and tunnels, and heating the mined material so it could be shaped into practical and ceremonial objects. Over time, Indigenous miners developed vast copper trade networks as craft workers in the distant cultural groups such as the Mississippi Valley mound building cultures (800 to 1600 CE) mastered the art of molding copper sheets over wooden carvings to produce startlingly intricate artwork. In Central and South America, Indigenous People mined copper and gold at least 4,000 years ago, with sophisticated smelting techniques first emerging among the Moche culture roughly 2,000 years ago.

Even as many Indigenous mining and copper cultures transformed their cultures in response to the ravages of disease during the early period of European contact (the agricultural Mississippians eventually became bison hunters on the Great Plains, for instance), others persisted into the modern era. The Ahtna People of Alaska controlled the vast copper deposits of the Chitina River basin to the end of the 19th century, fighting off Russian and American incursions until a smallpox outbreak in 1900 forced their abandonment of the area. The Kugluktukmiut (the so-called Copper Eskimos) of the Coronation Gulf region, and the Yellowknives Dene (previously called Copper Indians) of the Great Slave Lake region, produced copper tools and weapons into the early 20th century.

Hopewell copper artifact representing a bird of prey. Hopewell Cultural National Historical Park in the southern part of Ohio. Copper was prized for ceremonial and decorative uses. The image is printed with permission from Formac Lorimer Books.

Throughout the 19th century, many geologists, anthropologists, and even popular writers refused to recognize the achievements of Indigenous miners. Some suggested that the apparently “primitive” woodland people of the Lake Superior region could not have built the nearly 5,000 small copper mines that exist in the Keweenaw Peninsula, but at least they mostly argued (erroneously) that it was an Indigenous group, likely one deemed more sophisticated such as the Mississippians, that must have built the copper mines. Others went further, denying Indigenous People any role in the ancient mining of the Americas, concocting fantastic theories that placed ancient Europeans, perhaps Egyptians, Cypriots, or Minoans at the centre of the story.

More recent archaeological research has set the record straight on Indigenous miners as innovators in the realm of resource development and technology. Even after the contact period, many Indigenous groups maintained close connections to mining, sharing knowledge of valuable deposits with outside prospectors, selling country food to early-stage exploration camps, cutting seismic lines and timber for heating fuel, and joining the mining workforce whenever opportunities arose to do so. This process has only accelerated in recent decades as Indigenous communities in Canada have gained more power (through land claims, constitutional rights, impact and benefit agreements (IBAs), etc.) to negotiate the terms on which mining development will proceed.

More recent archaeological research has set the record straight on Indigenous miners as innovators in the realm of resource development and technology.

Of course, Indigenous communities recognize the close historical connection between colonial mining and dispossession from traditional lands, and Indigenous communities will very often oppose individual mining projects that threaten to undermine the health of local people and the land. In northern Canada, where so much mining takes place, development proposal on Indigenous lands will inevitably be weighed against other community priorities, not least Indigenous-led conservation projects that have designated large areas of land as protected spaces. At the same time, many Indigenous People and communities strongly identify as miners, whether as drillers, heavy equipment operators, managers, or investors.

While it is dangerous to draw too direct a parallel between vastly different mining practices in the ancient and contemporary worlds, it is also important to recognize that Indigenous engagement with mining is, for many cultures, grounded in experiences that stretch back to the deep history of this continent.

John Sandlos is a professor in the History Department at Memorial University of Newfoundland and the co-author (with Arn Keeling) of “Mining Country: A History of Canada’s Mines and Miners,” published by James Lorimer and Co. in 2021.

SEE

The Devil and Commodity Fetishism in South America 

May 1, 1982 In this classic book, Michael Taussig explores the social significance of the devil in the folklore of contemporary plantation workers and miners in Colombia and Bolivia

https://ia800805.us.archive.org/29/items/MichaelTaussigMimesisAndAlterityAParticulbOk.org/%5BMichael_Taussig%5D_The_Devil_and_Commodity_Fetishis(b-ok.org).pdf

ICYMI

SRC offers Canada’s first solvent extraction cell for REE processing

The Saskatchewan Research Council (SRC) has successfully designed and built proprietary commercial-scale solvent extraction cells for its under construction rare earth (REE) 

By Canadian Mining Journal Staff

May 31, 2023

A Saskatchewan Research Council employee oversees the rare earth solvent extraction process. Credit: Saskatchewan Research Council

The Saskatchewan Research Council (SRC) has successfully designed and built proprietary commercial-scale solvent extraction cells for its under construction rare earth (REE) processing facility. With this, Saskatchewan and Canada are now one of only a handful of jurisdictions in the world with this capability.

The cells, which are being developed with automation algorithms to improve productivity and efficiency, are being manufactured at an SRC-operated fabrication facility in Saskatoon, Sask., that celebrated its grand opening on May 25 alongside the Hon. Jeremy Harrison, minister R=responsible for SRC.

"Innovation and technology development are at the heart of what SRC does," Harrison said. "The design, fabrication and automaton of these solvent extraction cells right here in Saskatchewan is helping to develop an innovative and secure rare earth element supply chain in North America."

SRC is manufacturing 140 of these cells by fall 2023 at the fabrication plant. The cells will be the main component in the rare earth processing facilities separation unit. The cells take mixed rare earth chloride, a liquid mixture which includes all 17 rare earth elements, through a process that separates them into individual or grouped rare earth oxides. When separated, REEs are highly valuable and are used in a variety of modern technological end-uses including cell phones, electric vehicles, and wind turbines, along with more strategic uses including for the defense industry.

"As SRC continues to develop its own commercial demonstration rare earth processing facility, it is developing additional expertise and new processes and technologies, like the solvent extraction cells, that will help position Saskatchewan as a leading-edge rare earth element hub," SRC president and CEO Mike Crabtree said. "The cells have been developed with automation algorithms to improve both productivity and efficiency, while at the same time being a cost-effective option, making them both a benefit to SRC's facility but also to the growing rare earth industry as a whole."

SRC is constructing North America's first fully integrated, commercial demonstration rare earth processing facility with hydrometallurgy, separation and metal smelting stages which is expected to be fully operational in late 2024.

For more information, visit www.SRC.sk.ca.

Electric mining in the digital age: A workforce revolution

Hugh Secord| June 1, 2023 

CANADIAN MINING JOURNAL

Change is a good thing. Change, however, is not an easy thing

Machines replacing humans in the workplace has been a perpetual concern since the Industrial Revolution. In the early 1800s, the Luddites, a “radical” organization of textile workers protested the use of machinery in the industry as it effectively eliminated many of the craft jobs and replaced them with machines and unskilled factory labour. Moreover, the machinery advanced productivity and resulted in the factories needing fewer workers than the craftspeople that were displaced. The Luddites sabotaged the machinery to try to impede progress. In the end, they failed, but history will remember them. Today, anyone who seemingly resists the adoption of technology is often referred to as a Luddite.

Robotics and automation in general will continue to displace workers and result in some groups finding themselves unemployed. This is an unfortunate but inevitable consequence of finding better ways to produce more with less. However, before passing judgment as to whether this is a good thing or bad thing, we need to look at both the positive and the negative impact new technology will have on the workforce.

In mining, one of the immediate advantages to advanced technology whether in the form of autonomous haul vehicles or remote-controlled mining machines is that it removes workers from the dangers they could be exposed to at the workface. This could include exposure to hazardous substances (e.g., radiation in a uranium mine); noise; dust; loose falling material; moving heavy equipment; poor air quality; or any number of other hazards specific to what is being mined. Removing humans from the workface is the ultimate mitigating step to protect workers from the inherent dangers often associated with mining.

Safety is the key rationale for deploying new technology that eliminates the human operator. Notwithstanding, one should expect a dispute with organized labour no matter how compelling the safety argument is. Several years ago, I spoke to members of the Longshoremen’s Union on the west coast about the then relatively new technology [Hands Free Mooring (HFM)] that allowed a port operator to land a ship and secure it to a wharf completely by remote control and with no human intervention using giant suction cups. HFM units reach out to secure a ship during dockage, utilizing vacuum pads instead of traditional wire or rope lines. Ships are held by the mooring units which move up or down on rails recessed within the dock wall as the ship moves up and down with tides and waves. Once the ship is finished being loaded or unloaded as the case may be, the mooring units gently push the ship off the dock and release their grip, allowing the ship to proceed on its journey.

The Longshoremen Union objected to the use of this technology at the time because it represented a clear threat to jobs. However, the jobs that would be eliminated were amongst the most dangerous in the world. Many people are seriously injured or killed in the process of mooring ships with heavy lines or cables. The counter argument is not always rational when we are talking about something that radically changes how work is performed. More than just threatening jobs, technology challenges a way of life and a work culture for those dock workers.

This cultural disruption has the knock-on effect of changing how people in certain walks of life see themselves. The Longshoremen members see themselves as hard-working tough individuals who face danger in the performance of their duties. When a gang of these rugged individuals can be replaced by a single operator sitting in a control room which could be several hundred kilometers away, the impact can hardly be anything less than emotional. It takes away not just employment but eradicates identity.

Similarly, continuous mining methods using remote controlled boring machines and automated conveyor systems not only dramatically improves safety and productivity, but it also changes the very nature of mining. These methods replace face drill operators, explosive technicians, scalers roof bolters, and more. These workers are replaced by control room operators who are shielded from the noise, dust, and other inherent hazards. It is dramatically different work and will completely change the culture of mining.

The degree of technological advancement that is available in the mining sector will have a profound effect on how the industry is perceived. Mining is often seen as a rough profession suitable to certain hearty souls who relish the inherent danger that one implicitly associates with going underground and digging out valuable minerals. The new face (pun intended) of mining is much different.

The modern miner is a technician operating sophisticated equipment in the safety and comfort of a control room far removed from danger. The work environment is conducive to attracting and retaining a different kind of workforce that is more diverse. This is a key point. The transformation in the nature and makeup of the workforce is an important challenge for human resource practitioners. It is not as simple as retraining people in new technologies. It is truly embracing a complete revamping of the workforce mix and therefore operating culture.

This cannot reasonably be accomplished incrementally. It is about revolution not evolution. In the initial example above, the sabotage associated with the Luddite upheaval was an inevitable and arguably necessary reaction to dramatic changes caused by the introduction of revolutionary new technology. It is nice to sit in the comfort of our offices and imagine the front-line workers accepting just how wonderful their lives are going to be once they realize the positive impact the technology is going to have. Alternatively, one might think that the offer of a comfortable retirement package will ease some displaced workers into a new sedentary lifestyle. However, that is not the reality we live in. The introduction of technology disrupts lives and challenges how people identify with the work they currently perform.

With new technology, there will be new and interesting jobs. The front-line worker becomes a technical operator and is freed from manual labour, and other jobs emerge at the front line that require master crafts people of the highest order. Robots, electrical vehicles, autonomous haul trucks, and all matter of new equipment will require maintainers with extraordinary skills that largely do not exist today.

Certainly, given today’s digitization, many pieces of equipment are designed with modules that allow for quick maintenance and repair, and the work can be performed by semi-skilled technicians (think of an F1 pitstop). But at the other end of the scale, we will need problem solvers who have programming skills on top of deep mechanical knowledge on top of a sophisticated understanding of systems. These “masters” likely will have two or more trade tickets and a variety of experiences and will command a fortune in wages because of their superior skill set.

So, while many front-line jobs in mining will be replaced by machines and systems, we will see the emergence of a new class of workers who will be highly trained and qualified. The emergence of these technical roles will change the nature of this kind of work and disrupt the way these jobs are viewed by the public.

If we collectively manage the future transformation correctly, we will have to face the reality that a large group of people will be displaced and will be very unhappy. They will not only be displaced by machines, but they will also make way for a new class of worker who will command respect because of the significant investment they have made in learning a trade that not long ago did not exist. We will find these technical roles in mining, in the oil and gas sector, in the broader power sector (including renewables), manufacturing, supply chain, and anywhere that technology can be used to reduce exposure to danger and increase productivity by replacing people at the workface.

Hugh Secord is chief strategist at Oakbridges.

WHERE EV IS ESG

Komatsu gathers GHG alliance for look at battery-powered haul truck

Komatsu gathered members of the company’s Greenhouse Gas (GHG) Alliance at the Komatsu Arizona proving grounds (AZPG) in mid-May to share progress […]

By Canadian Mining Journal 

Staff June 1, 2023 

Komatsu’s GHG alliance has grown to include Antofagasta Minerals, BHP, Boliden, Codelco, Freeport-McMoRan, Grupo Mexico, Kinross, Rio Tinto, and Teck Resources. Komatsu photo

Komatsu gathered members of the company’s Greenhouse Gas (GHG) Alliance at the Komatsu Arizona proving grounds (AZPG) in mid-May to share progress and highlight knowledge gained since its EVX battery-powered haul truck was introduced two years ago.

Alliance members had the opportunity to observe advancements made over the past year related to the performance and sizing of batteries and to learn how Komatsu plans to leverage the company’s trolley system to advance understanding of battery truck performance in a dynamic charging environment. Members also had the opportunity to engage in a discussion on recent progress within the regulatory environment. Specifically, alliance members saw the upgraded EVX (battery) truck running a circuit on battery, static charging of the battery with the truck hooked up to the trolley line via pantograph, and a run up the trolley line highlighting the battery being charged and increased speed in the dynamic environment.

The GHG alliance was created to bring together mining industry leaders to work toward a shared goal of delivering zero-emissions equipment solutions. Alliance members have since been working to advance Komatsu’s power agnostic truck concept for a haulage vehicle that can run on a variety of power sources including diesel engine, battery, or hydrogen fuel cells with both static and dynamic charging capabilities.

Komatsu says that since the alliance was formed, membership has steadily grown and now includes Antofagasta Minerals, BHP, Boliden, Codelco, Freeport-McMoRan, Grupo Mexico, Kinross, Rio Tinto, and Teck Resources.

Komatsu is committed to minimizing environmental impact through its business, targeting a 50% reduction in CO2 emissions from use of its products and production of its equipment by 2030 (compared to 2010 levels) and a challenge target of achieving carbon neutrality by 2050.

Google leads funding round for Indian space startup Pixxel

Reuters | June 1, 2023 |

Scout satellite. (Reference image by the European Space Agency, Facebook).

Alphabet Inc’s Google is leading a $36 million funding round for Bengaluru-based Pixxel, a satellite-image startup, in the first major investment in the Indian space sector since the government launched its privatization policy in April.


Pixxel, founded in 2019, is building a constellation of satellites that have the ability to identify mineral deposits or the productivity of crops by analyzing the spectral signature of an image.

Miner Rio Tinto Ltd and Australian agritech company DataFarming are clients, Pixxel said.

The startup has raised more $71 million from investors including Accenture PLC. Pixxel did not specify how much Google had invested or the valuation it reflected.

Google in India did not immediately respond to questions about the investment.

Founder and chief executive Awais Ahmed said Pixxel would be “the most valued space tech company in India after this investment”.

That had been rocket and launch provider Skyroot Aerospace, valued at an estimated $163 million, according to Tracxn, which tracks startups.

“We work with satellite data and Google does a lot of work around that with agriculture and environment,” Ahmed told Reuters. “They also have Google Earth … so a combination of that led to them seeing a benefit.”

Pixxel is among the many private companies looking for a fillip since India opened the space sector, encouraging startups to deliver broadband services like Starlink and to power applications like tracking supply chains.

The government announced its private-sector space policy framework in April.

The funding comes at a time when startups globally have struggled to raise funds. Space startups, in particular, have come under pressure after the bankruptcy of Richard Branson’s Virgin Orbit launch company.

Ahmed said the funding would be used to build out its satellite network. Pixxel is readying six satellites for launch next year to add to the three it has now and looking to hire more engineers for its analytics.

Ahmed has said he was inspired to launch a space startup from a visit Elon Musk’s SpaceX as part of a student competition to build a demonstration “hyperloop” transport pod.

He and co-founder Kshitij Khandelwal set out to build an AI model that could use satellite data to predict crop yields, detect illegal mining and track natural disasters.

They launched Pixxel when they concluded existing commercial satellite images did not provide enough detail. Pixxel’s satellites take in and analyze a wide spectrum of light instead of just assigning primary colours to each pixel, a technology known as hyperspectral imaging.

(By Nivedita Bhattacharjee; Editing by Kevin Krolicki and Christopher Cushing)

 

Five Methanol-Fueled Containerships with Wingsails Ordered in Korea

Zéphyr & Borée developed the design for a containership to use sails and to be methanol-fueled (Zéphyr & Borée)

PUBLISHED MAY 24, 2023 6:27 PM BY THE MARITIME EXECUTIVE

 

French startup Zéphyr & Borée is widely believed to be behind an order placed at South Korea’s Hyundai Mipo Shipyard which calls for the construction of five innovative containerships. While the company has not officially confirmed the order, it is believed that they are proceeding with an initial class of five feeder ships that will deploy the wingsail design as well as methanol-fueled engines to achieve one of the first zero-emission containerships.

The shipyard in a stock exchange filing on May 22 reported an order for five containerships valued at a total of $311 million to an unnamed shipping company in Europe. The price per ship is reported at $62.2 million, nearly double the standard pricing for feeder ships. Alphaliner is speculating that a select group of shippers is willing to pay a premium to be among the pioneers of zero-emission shipping. On the company’s website they wrote that the sails would add 20 percent to the cost of building the ship.

The International Windship Association tweeted out a congratulatory message to Zéphyr & Borée. “This contract is backed by a number of French shippers signing long-term shipping commitments. We look forward to future announcements of further builds in the pipeline,” they wrote.

It is believed each of the vessels will have a capacity of 1,300 TEU. Delivery according to the shipyard begins in 2025 and will be completed before June 30, 2026. Alphaliner speculates that the order is to be followed by a second for similar-sized ships to form a class of 10 vessels. It is unclear if Zéphyr & Borée plans to run the ships or partner with one or more carriers to maintain their operations.

 

Canopee due to be fitted with the sails by summer 2023 will be a proof of concept demonstration aboard an in-service vessel (Ariane Group)

 

BV awarded an Approval in Principle (AiP) to Zéphyr & Borée at the end of 2021 for a design of an open-top 1,800 TEU containership. At the time it was reported to be a 607-foot-long with five cargo holds, mostly open-top. The vessel’s propulsion system they reported would be assisted by eight sails provided by CWS (Computed Wing Sails). The website describes the Meltem design as being 25,000 DWT. The design they say would offer price competitive shipping and carry loads equal to similar sized ships without sails.

The order comes as the company prepares for its first proof of concept demonstrations on a large, in-service vessel. The Canopée was delivered at the end of 2022 and is currently undergoing its trials and commissioning. The vessel was specifically designed for the French aerospace company Ariane Group to transport components for the Ariane 6 rockets. It is capable of carrying large, fragile loads and navigating the shallow waters to the launch site in French Guiana.

Measuring 397 feet with a beam of 72 feet, the vessel is also an open-top design. Ariane reports it is 10,000 dwt and will have a speed of 17 knots. It completed its first Atlantic proving voyage in January 2023 and is due to be fitted with the four articulated wingsails by the summer.
 

Canopee was delivered at the end of 2022 and is currently doing trial trips and commissioning (Ariane)

Xeneta: Long-Term Container Rates Collapsed with More Pain Ahead

Long-term contracted freight rates collapsed in the ninth consecutive month of declines

PUBLISHED MAY 31, 2023 6:08 PM BY THE MARITIME EXECUTIVE

 

Contracted long-term ocean freight rates collapse during May marking the ninth consecutive month of declines. The expiration of the 12-month contracts, which traditionally start over each May, contributed in large part to a dramatic decline of 27.5 percent and a further demonstration that the era of high demand, lack of equipment, disrupted supply chains, and congestion is over according to benchmarking and analytics platform Xeneta.

“If industry observers were left wondering just how bad it could get for carriers after the 10 percent fall in long-term rates seen in April, here’s the answer,” comments Patrik Berglund, CEO of Xeneta. “Monthly declines have become the ‘new normal’ at present, but this is a collapse,” he said while noting, “It paints a bleak picture of the state of the industry.”

Xeneta publishes a monthly Shipping Index (XSI), which charts real-time global rates developments. They report that May was the largest-ever monthly fall recorded on the XSI. “The global XSI is now down 42 percent year-on-year,” Berglund highlights, “and with continued macroeconomic uncertainty, evaporating trade volumes, and a wider sense of geopolitical flux, short-term industry omens do not suggest a move ‘back into the black’ at any time soon.”

Berglund says the decline is especially noteworthy as it marks the first-time long-term rates have recorded a year-on-year decrease since late 2020. 

While all the global markets showed weakness, Xeneta highlights that the U.S. import index collapsed by just over 40 percent in May and has now lost 54.6 percent of its value since peaking in October last year. In dollar terms, Xeneta equates this to the average contracted price of shipping containers between the Far East and the U.S. West Coast falling by $6,140 per FEU year-on-year (a 76 percent drop). 

The scale of the decline in the U.S. import index was matched by that in Far East exports, with that segment falling 38.6 percent in May. This segment has now lost more than half its value in 2023, and is 58.5 percent down year-on-year. 

Contacted agreements for Europe failed to escape a “bloody month” for the industry according to Xeneta. The import benchmark moved down 11.1 percent from April (32.6 percent since the start of the year), while its export counterpart fell by 15.9 percent (matching the decline from the previous month).

“This is very worrying for carriers, who are working overtime to manage capacity - adjusting vessel speeds, restructuring services, and blanking sailings - and all to no avail,” said Berglund. “There’s very little the carriers can do to protect their precious long-term rates in this kind of climate, especially when we consider that the vessels ordered during the pandemic ‘boom’ are now starting to swell overall industry capacity.”

With demand for containerized exports out of the Far East falling, and a lack of demand for imports into the U.S., Berglund believes it is a “retreat” in the two forces that traditionally drive global trade growth. He notes that those carriers with the greatest exposure to long-term contracts will feel increasing financial pain but also expects that there are more developments on the horizon in what will be a very challenging year for the carrier community.

CRIMINAL CAPITALI$M

Singapore Investigating Seatrium on Pre-2015 Brazilian Corruption Case

Corruption allegations stem from Sembcorp Marine's Brazilian shipyard and activities before 2015 (file photo)

PUBLISHED JUN 1, 2023 12:11 PM BY THE MARITIME EXECUTIVE

 

Seatrium, the successor company formed in Singapore after the merger of Sembcorp Marine and Keppel Offshore & Marine, confirmed that it has been notified that Singapore’s Corrupt Practices Investigation Bureau has started a new investigation which the company links to the pre-2015 activities of Sembcorp Marine’s subsidiary in Brazil. Both companies independently prior to the merger have been linked to a far-reaching bribery and corruption case in Brazil known as Operation Car Wash in which illegal payments were used to receive lucrative contracts from Petrobras and others in the oil and gas sector.

The Corrupt Practices Investigation Bureau issued a brief statement confirming that “Acting on information received,” it had commenced investigations “against Seatrium and individuals from Seatrium Limited on alleged corruption offenses that occurred in Brazil.” The bureau said as is its normal practice it would provide no further details while analysts highlighted that these types of investigations are typically long and drawn out. They noted however that it would “cast a shadow” over the company.

Seatrium as is a normal business practice filed Thursday morning for a suspension of its trading on the Singapore stock exchange prior to the announcement causing a brief panic in the markets. They issued a statement confirming the investigation and saying the company would cooperate fully. They said they believed it related to Sembcorp Marine and events before 2015, predating the February 2023 merger with Keppel Offshore & Marine.

The company later responded to questions from the Singapore Exchange Securities Trading saying that it was not aware of the identity of the individuals who were being investigated for alleged corruption offences. “As far as the company is aware, investigations are ongoing and no formal charges have been made against any of the key officers of the company.”

The case has made headlines over the years with both Sembcorp Marine and Keppel O&M making payments to settle the old allegations. In 2012, Sembcorp Marine won seven drillship contracts from Brazil’s Sete Brasil valued at $5.6 billion. Two years later, the investigations began in Brazil into allegations of corruption and bribery. An agent working for the company’s Brazilian subsidiary, Estaleiro Jurong Aracruz, was jailed in 2020 on charges of bribery and money laundering. Sembcorp Marine later settled with Sete.

Brazil said in March 2023 that it had opened a new investigation into the case. The wider Operation Car Wash has been described as one of Brazil’s largest corruption scandals involving a broad range of politicians and companies. Reports said that the investigation into Sembcorp Marine’s involvement however had been suspended in April.

Separately, in December 2022 Keppel O&M announced it was paying $65 million to settle charges related to corruption by former foreign consultants to its shipyard operations. It was alleged that six Keppel O&M managers had conspired to make approximately $55 million in illegal payments through the business consultants to win contracts from Petrobras. Singapore’s Corrupt Practices Investigation Bureau issued a stern warning but stopped short of any criminal charges.

Seatrium is emphasizing that it believes this is a continuation of the old events dating back a decade ago. Analysts point out that the company has a strong order book valued at approximately S$24 billion (US$17 billion). The company installed a new management team and outlined revisions to its strategy after the merger. It looks to build on its strong legacy in the oil & gas sector as well as expand into new opportunities in offshore wind and other engineering sectors. 

 

Netherlands Commits to Financial Aid to Help Ports Install Shore Power

The Netherlands' major ports will be eligible for support to install shore power capabilities (North Sea Ports file photo)

PUBLISHED MAY 26, 2023 11:37 AM BY THE MARITIME EXECUTIVE

 

The Dutch government is committing to provide financial support for the country’s ports to adopt and expand the use of shore power. The initiative recognizes the significant investments necessary to meet the pending EU mandates that require the use of shore power as well as the goal to improve the environment around the country’s seaports.

By 2030, EU ports are required to have shore power available for ships greater than 5,000 gross tons covered by the Alternative Fuels Infrastructure Regulation. This will include containerships, cruise ships, passenger ships, and combined passenger and cargo ships. Government officials recognize that these large ships will require large amounts of power while on dock.

The consulting group Branche Organisatie Zeehavens (BOZ), formed to liaise between the ports and government, previously calculated that approximately 270 MW of shore power capacity will have to be installed in the ports for ships covered by AFIR. They estimate the required investment at approximately $325 million. BOZ chairman Boudewijn Siemons notes that the installation of shore power despite its environmental benefits does not translate into a sound business case for terminals and shipping companies.

The Netherlands’ Ministry of Infrastructure seeks to help with this challenge by committing to a public-private partnership with BOZ to allocate $150 million in the coming years to help realize shore power installations in seaports. In addition, another $43 million will be provided from the country’s climate fund.
 
“In order to achieve the climate goals, it is essential that all sectors make their contribution, including the maritime sector,” said Minister for Infrastructure and Water Management Mark Harbers. “At the same time, this requires huge investments. I am pleased that with this subsidy scheme we can offer the sector a helping hand and further stimulate the installation of shore power. This not only leads to environmental benefits but also to less noisy generators that run while a ship is berthed. And hopefully, there will be room for development in the ports and new climate projects.”

The project will focus primarily on the Netherlands’ five major seaports, Rotterdam, Amsterdam, Groningen, Moerdijk, and North Sea Port (Vlissingen, Terneuzen, and Ghent). The resources for shore power are mainly intended for terminals where AFIR ships moor, but other shore power projects for maritime shipping will also be eligible for the subsidy.