It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Friday, June 02, 2023
Namibia says will not grab stakes in existing resource firms
Reuters | June 1, 2023 Windhoek, Namibia. Stock image.
Namibia is not considering taking minority stakes in mining and petroleum producers already operating in the country, the ministry of mines and energy said on Thursday, clarifying earlier comments by the mining minister.
Minister of Mines and Energy Tom Alweendo was quoted as telling lawmakers on Monday that Namibia would target stakes in resource companies to reap more value from its mineral wealth.
“The government has no intention of seizing any stake from existing mineral or petroleum licence holders and remains committed to uphold the sanctity of contracts,” the ministry said in a statement.
The ministry, however, did not rule out the government taking minority stakes when granting licences to resource firms in the future.
“The state as the supreme owner of these natural resources, may demand certain minimum stake through public enterprises … in any mineral or petroleum licences that may be issued in future,” the ministry said.
Namibia is one of the biggest uranium producers in the world. It is also a major diamond producer and has significant hard rock lithium deposits.
(By Nyasha Nyaungwa; Editing by Olivia Kumwenda-Mtambo and Kirsten Donovan)
Teck Struggles to Secure Top Shareholder’s Support on Coal Split
Bloomberg News Thu, June 1, 2023
(Bloomberg) -- Teck Resources Ltd. is struggling to secure the support of top shareholder China Investment Corp., as the Canadian miner studies options to exit its coal business while fending off a takeover bid from Glencore Plc.
Chief Executive Officer Jonathan Price met with CIC representatives last week to solicit feedback after the Chinese sovereign wealth fund failed to back an earlier coal spinoff plan, according to people familiar with the matter. However, Price did not come away with any assurance that CIC would support a new proposal, said the people, who asked not to be identified discussing private information.
Spokespeople for Teck and CIC declined to comment.
Teck was forced to withdraw its previous spinoff plan just hours ahead of a shareholder meeting in April, after it failed to muster enough support. Teck insists that splitting off its coal business remains preferable to Glencore’s offer, and is now under pressure to present shareholders with a new, simpler proposal.
CIC, which owns 10% of Teck’s Class B shares, would favor whatever plan allowed investors to exit their coal exposure cleanly for an attractive cash return, said one of the people.
Glencore initially proposed buying Teck for $23 billion in shares, in order to create two new companies from their combined coal and metals businesses. It later added a cash component, offering up to $8.2 billion to buy out shareholders that would prefer to exit coal.
The Swiss commodities giant is now preparing a potential improvement to its $23 billion bid that could be announced as soon as the coming weeks, Bloomberg reported on Tuesday.
Teck’s “supervoting” Class A shares mean its future will ultimately be decided by the founding Keevil family. However, CIC played a vital role in April’s vote because the resolution required two-thirds approval from each class of stock separately. The fund has not made any public comments about Teck’s future, but Bloomberg reported in mid-April it favored Glencore’s proposal because it would allow investors to exit their coal exposure in return for cash.
Teck management initially believed CIC would support its plan ahead of the April vote, with Price telling media he was confident the fund would vote “yes.” However, the company was left scrambling to determine CIC’s actual position in the days and weeks leading up to the April 26 vote before the Chinese fund ultimately did not support it, according to a person familiar with the matter.
China is drilling a 10,000-meter-deep hole into the Earth
PLANNING TO COME UP IN ALBUQUERQUE Bloomberg News | June 2, 2023 | An ultra-deep oil and gas area with reserves of 1 billion tonnes was discovered in Tarim oilfield in Xinjiang, China, in June 2021. Credit: New China TV via Youtube
Chinese scientists have begun drilling a 10,000-meter (32,808 feet) hole into the Earth’s crust, as the world’s second largest economy explores new frontiers above and below the planet’s surface.
Drilling for what is set to be China’s deepest ever borehole began in the country’s oil-rich Xinjiang region on Tuesday, according to the official Xinhua News Agency. Earlier that morning, China sent its first civilian astronaut into space from the Gobi Desert.
The narrow shaft into the ground will penetrate more than 10 continental strata, or layers of rock, according to the report, and reach the cretaceous system in the Earth’s crust, which features rock dating back some 145 million years.
“The construction difficulty of the drilling project can be compared to a big truck driving on two thin steel cables,” Sun Jinsheng, a scientist at the Chinese Academy of Engineering, told Xinhua.
The project will provide data on the Earth’s internal structure, while also testing deep underground drilling technologies, according to China National Petroleum Corp., which is spearheading the project.
The drilling is expected to take 457 days.
President Xi Jinping called for greater progress in deep Earth exploration in a speech addressing some of the nation’s leading scientists in 2021. Such work can identify mineral and energy resources and help assess the risks of environmental disasters, such as earthquakes and volcano eruptions.
The deepest man-made hole on Earth is still the Russian Kola Superdeep Borehole, which reached a depth of 12,262 meters (40,230 feet) in 1989, after 20 years of drilling.
Reuters | June 2, 2023 | Artisanal gold miners in the Democratic Republic of Congo. (Image by Robert Carruba, Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH – The Extractive Industries Transparency Initiative (EITI), Flickr.)
A 25-year deal published this week by the Congolese government hands a little-known UAE firm exclusive rights to export artisanal gold at preferential rates, prompting criticism it will solve none of the issues it was meant to address.
Authorities in Democratic Republic of Congo had touted the deal, signed in late 2022, and made public on Monday, as a way to clean up the country’s informal, or artisanal, mining sector where smuggling has led to the loss of millions of dollars in tax revenue each year and helps to fund armed groups destabilising Congo’s mineral-rich eastern provinces.
The new contract is renewable and gives Primera Group a majority share in two joint ventures with exclusive rights to export artisanally-mined gold at an “exclusive preferential rate” of 0.25%. It also gives them exclusive rights to export artisan coltan and tin, tantalum and tungsten (3T) at an exclusive tax rate of 3.5%.
Analysts and watchdog ‘Le Congo n’est pas a vendre’ (Congo is not for sale), a group of 14 Congolese and international organisations that push for transparency in mining and financial sectors, said the contract’s length and advantageous tax rate were troubling.
“A monopoly on the export of all artisanally-mined gold and 3T minerals, for 25 years … raises great concerns about fairness,” Jean Claude Mputu, spokesperson for the watchdog, said.
The UAE foreign ministry and Primera Group, which describes itself on its website as a diversified conglomerate based in the UAE capital Abu Dhabi, did not immediately respond to a request for comment.
The Congolese government did not comment when it published the contract, following pressure from the International Monetary Fund for transparency.
In February, however, Finance Minister Nicolas Kazadi said smuggling had already declined. He cited data that showed Primera’s artisanal gold exports over 45 days from one eastern province were six times higher than the province’s equivalent exports for all of 2022, but did not explain how that proved smuggling had declined.
Mputu and two former UN analysts said the deal’s advantageous tax terms for exporting raw minerals were also incompatible with the government’s avowed wish to establish processing capacity within Congo so it can earn more from its vast mineral wealth.
The contract only requires Primera to establish a gold refining plant within Congo when the volume of gold to be refined exceeds 60 tonnes per year.
That threshold remains far off. Primera has said it exported 650 kilograms of artisanal gold from the province of South Kivu between January and April.
Meanwhile its export tax rate for raw gold is 40 times better than the 10% offered to a fledgling local processor of refined gold, said Gregory Mthembu-Salter, former UN analyst and head of Phuzumoya Consulting, which tracks natural resource governance.
“This looks like a deal that is going to benefit a small number of people for a very long time,” said an analyst who worked for the UN in Congo, speaking on condition of anonymity.
(By Sonia Rolley, Justin Makangara and Lisa Barrington; Editing by Alessandra Prentice and Barbara Lewis)
Orbex launches world's first marketplace for authenticated recycled metals
LONDON and CHICAGO, May 23, 2023 /PRNewswire/ --
In response to the growing pressure on businesses to prioritize environmental responsibility and develop more sustainable supply chains, Orbex has launched the world's first marketplace for globally-recognized authenticated recycled metals.
The demand for secondary metals is predicted to overtake primary metals within the next 20 years, with a market value potentially reaching up to $500bn by the end of 2024. Currently, 400 million tonnes of metal are recycled annually. Despite this, there is no globally-recognized, standardized authentication process to verify the origin of recycled metal and track its use through the supply chain. This prevents businesses from accurately accounting for their environmental impact in ESG reporting. It also poses barriers for suppliers in enhancing the value of high-quality secondary metals.
Orbex addresses these challenges. The company, which has secured one of the largest supplies of recovered ferrous metal in North America as well as access to 2% of the global recycled aluminium and copper markets, applies a certification of origination (COO) for all secondary metal which is transacted via the new marketplace, detailing proof of provenance and origin.
Orbex develops authentication standards and processes as part of an open-source initiative at one of the most respected, independent non-profit standards bodies in the world, OASIS Open. OASIS Open's previous work includes standards for electronic invoicing, and a standardized open interface allowing organizations to integrate biodiversity data into their software systems.
Orbex CEO Thomas Buchar said: "Orbex is driving much needed change by finally bringing globally-recognized standardization to an enormous market which until now has sat untapped and unimpeded. We are proud not only to be promoting sustainable practices in sectors which are traditionally hard to abate, while offering the unique opportunity to capitalize on increased demand for environmental commodities, ensure supply chain integrity, and assist multinationals in their transition to a circular economy."
"Orbex is the first piece of critical trading infrastructure and will remain the original and most trusted source for secondary metals. We're looking forward to a future where we can offer a wide range of authenticated environmental commodities."
Orbex, which is backed by leading metal recycler and processor SA Recycling, has plans to expand to other environmental commodities such as recycled plastic and organics. The company boasts a team of seasoned industry professionals, including CEO Thomas Buchar, CDO Antonella Amadei, formerly the Head of Global Development at the London Stock Exchange Group; Board Advisor Tyler Adams, COO of SA Recycling; and Roseann Palmieri from Sandhill East Advisors.
With global metal production accounting for up to 7% of global GHG emissions, and recycling metal such as aluminium saving up to 95% of the energy needed to mine and produce primary metals, Orbex is driving positive change in a some of the hardest to abate sectors, including aviation, automotive and construction. It is estimated that carbon emissions could drop by 600 megatons each year by reusing steel and aluminium scrap alone.
Notes to editors:Recycling metal can save as much as 95% of energy needed to mine and produce primary metals according to EuRIC. Global metal production accounts for 4-7% of global GHG emissions based on GlobalData's calculation of total GHG emissions of major metal and mining companies worldwide by revenue, in 2021. The projected market value by 2024 for recycled metals is $476.2 billion based on the findings of the Transparency Market Research (TMR) report "Recycled Metal Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015-2023". 400 million tonnes of metal are recycled each year, as referenced in ASM Metal Recycling Carbon emissions could drop by 600 megatons each year by reusing steel and aluminium scrap alone according to 2020 Wood Mackenzie Report. OASIS Open is an ANSI-accredited 501(c)(6) nonprofit organization, founded in 1993, that supports community collaboration on open source and open standards projects. It holds direct submitter status with ISO, ITU, and other global authorities and conforms to international public policy requirements for open development.
Orbex is a leading global marketplace to facilitate and accelerate efficient trading of environmental commodities, operating out of Chicago and London. In May 2023, Orbex launched the world's first environmental commodities marketplace to offer fully authenticated recycled metals and is building a network of Authenticated Recycled Materials Originators (ARCOs). Orbex is dedicated to assuring supply chain integrity and brand accountability to support emissions reporting, promote ethical sourcing and help companies transition to a circular economy. For more information and to join the marketplace, visit www.orbexmarket.com.
SOURCE Orbex
WAGE THEFT BHP owes underpaid Australian workers $280 million Reuters | June 1, 2023 | BHP employees. (Reference image courtesy of BHP, Facebook)
BHP Group said on Thursday it had underpaid nearly 29,000 of its Australian workers for leave and other entitlements over a 13-year period which it estimated would cost it $280 million before tax to fix.
The world’s biggest listed miner said it had reported itself to the country’s labour regulator and it had contracted an independent company to review its payroll systems. It will provide an update with its full year results in August.
Initial investigations suggest that workers at OZ Minerals were affected by a similar leave deduction issue before the copper miner was acquired by BHP in May 2023, it added.
BHP President of Australia Geraldine Slattery issued an apology to affected workers.
“This is not good enough and falls short of the standards we expect at BHP. We are working to rectify and remediate these issues, with interest, as quickly as possible,” she said in a statement.
The company said it had incorrectly deducted leave on public holidays since 2010 for an average of six leave days in total per person for the vast majority of current and former workers, or about 28,500 people.
BHP has also identified that around 400 current and former employees at its Port Hedland iron ore operations are entitled to additional allowances due to an error with the employment entity in their contract.
BHP said the estimated sum reflected its share of the costs that included pension and interest payments.
(By Melanie Burton; Editing by Sonali Paul)
Proposed Gulf of Mexico LNG Export Facility Announced
Construction of the facility is planned in two phases. When complete, the plant will consist of an accommodations platform, two gas treatment platforms, two 2.1 million tons per annum-MTPA liquefaction platforms, two loading platforms, one thermal oxidize
Thirteen miles south of Grand Isle, Louisiana in Plaquemines Parish, a proposed LNG export facility promises to deliver a cleaner environment and competitively priced US LNG, as well as significant economic benefits to the region.
MADE IN LOUISIANA
Poised to provide clean-burning US LNG to partners around the world, Grand Isle LNG expects to start delivering in 2026. The proposed Deepwater port is a platform-based modular design; its pipeline access, and its nearshore location will result in one of the least expensive and safest operations on the market today. Importantly, all platforms and many components of the facility will be Louisiana made by Louisiana energy workers.
Located in federal waters of the West Delta Blocks in depths ranging from 68 to 72 feet, construction of the facility is planned in two phases. When complete, the plant will consist of an accommodations platform, two gas treatment platforms, two 2.1 million tons per annum-MTPA liquefaction platforms, two loading platforms, one thermal oxidizer platform, and two 155,000 cubic meter storage and offloading vessels.
Because the Deepwater Port licensing application will be sanctioned by MARAD, it will go through a rigorous and comprehensive review by numerous federal and state agencies that will ensure the planned facility is compliant with all environmental and safety requirements.
Grand Isle’s management team represents experienced engineers, scientists, and entrepreneurs with more than 120 years combined work experience in Oil and Gas development, including offshore platform finance, construction, and operations.
Autonomous Vessel Operations Tested on Belgium’s Inland Waterways
Zulu 4 traveled over a 10-mile route during the demonstration (Kongsberg)
Kongsberg Maritime completed its next demonstration of autonomous shipping technology using an inland waterway barge on a busy Belgian shipping route. It follows a similar recent demonstration in Norwegian coastal waters as part of the growing efforts to build experience and achieve certification for the technology. Kongsberg is also partnered in a number of pioneering projects in Norway that seek to be among the first to achieve autonomous shipping using vessels on the coast and in Norway’s fjords.
This latest demonstration was designed to test the operations in a busy inland waterway. The AUTOSHIP project, an EU-sponsored research effort to commercialize autonomous shipping, concentrated this test on a Class2 Pallet Shuttle Barge (PSB), the 164-foot long Zulu 4 owned by Blue Line Logistics. The vessel operates in the Flemish region around the port of Antwerp transporting goods on pallets, break-bulk, or containers with a capacity of 350 tons.
The vessel was upgraded with onboard control technology. It was also linked to an onshore remote operation center. Kongsberg reports technologies used in the trial included Autodocking, Autocrossing, and automatic navigation systems. The company has also developed cloud-based communications systems and advanced simulations to test and ensure that the vessel operated safely and optimally. A safety crew was onboard the vessel during the test.
The Zulu 4 completed a circuit starting from a port in Niel on the Rupel River and stretching about 10 miles. During the trip, the vessel entered a busy sea canal before traversing locks and passing several bridges as well as a yacht club and marina. As part of the test, Zulu 4 maneuvered and navigated on unrestricted waterways, and it demonstrated berthing and unberthing capability.
“We are delighted with the performance of the Zulu 4 on what is a challenging route through the busy Belgian waterways,” said Pål André Eriksen, Senior Vice President, Remote & Autonomous Solutions, at Kongsberg Maritime. “The course that the ZULU 4 completed provided an opportunity to test our technology in a real-life situation, where numerous maneuvers were performed successfully and safely.”
Operations are overseen from Kongberg's Remote Operations Center
According to Kongsberg, under remote monitoring from the Remote Operations Center, the team and vessel had to show situational awareness, engine and machinery monitoring, berthing/unberthing, and maneuvering in port. The same tasks were demonstrated under autonomous control, as well as collision avoidance, grounding avoidance, transit sailing, and automatic mooring. The Zulu 4 also demonstrated the ability to switch between autonomous operation and remote-controlled operation.
Last week the partners in the AUTOSHIP program completed the other major demonstration planned during the project. A Norwegian coastal cargo ship was operated for a voyage lasting 13 hours over 160 nautical miles. Together the two voyages were the first demonstrations planned by the project to highlight the advancements in the technology.
The aim of the AUTOSHIP project is to test and develop fully autonomous navigation systems, intelligent machinery systems, self-diagnostics, prognostics, and operation scheduling, as well as communication technology enabling a prominent level of cyber security and integrating the vessels into upgraded e-infrastructure.
EU Seeks to Expand Ship Inspections for Safety and Pollution
EU proposed to expand port state controls to enhance safety and prevent against pollution (file photo)
The European Commission presented five legislative proposals which it says are designed to modernize EU rules on maritime safety and prevent water pollution from ships. According to legislators, the new rules would provide new tools and align EU rules with international regulations while increasing the authority of port state controls and expanding efforts to cover commercial fishing.
It was highlighted that maritime safety in EU waters is currently very high with few fatalities and no recent major oil spills. The legislators however said that there are over 2,000 marine accidents and incidents reported each year and the dangers are rising. They are seeking to modernize and expand the current controls while expanding the mandate of the European Maritime Safety Agency (EMSA) to meet emerging challenges and enhance maritime safety.
Three out of the five proposals focus on modernizing and improving maritime safety rules. The focus is on Port State control and maritime accident investigations, seeking to strengthen the enforcement of the rules to reduce incidents and accidents. Port State control would be extended to cover additional international rules, such as new Conventions on ballast water and sediments and the removal of wrecks. The proposal also updates the way ships are targeted for inspection, to reflect new requirements and will attach more importance to the environmental-related performance and deficiencies of ships, in determining their risk profile.
Other changes will further improve member states' capacity to detect and correct a lack of compliance with safety or with environmental and pollution prevention rules and standards. The proposal calls for increased information-sharing between flag states on the results of inspections they carry out and compliance issues in general. National accident investigation bodies would also receive further support from EMSA.
One of the biggest proposed changes would seek to extend port state control and accident investigation to fishing vessels. The legislators highlighted the significant safety concerns among fishing boats saying persist that member states could choose to apply port state control for fishing vessels calling at EU ports that are over 78 feet long. Further, for the most serious accidents involving smaller fishing vessels measuring less than 50 feet, member states would be required to report and screen the accidents for possible lessons to be learned.
The rules governing illegal discharges would also be expanded to cover a wider range of polluting substances. In addition to illegal discharges of oil and noxious liquid substances, which were covered under existing rules, the Commission proposes to also include discharges of harmful substances carried in packaged form, sewage, garbage, as well as discharge waters and residues from Exhaust Gas Cleaning Systems (scrubbers).
The role of EMSA would also be amended to provide new authority and to assist in the implementation of the EU’s efforts addressing not only safety but also pollution, environmental protection, and surveillance. The Commission will also rely on EMSA's support when implementing the FuelEU Maritime Regulation and extending the EU Emissions Trading System to maritime transport.
The proposals will now be considered by the European Parliament and the Council in the ordinary legislative procedure.
Russia-Ukraine Tensions Rise as Ports are Shelled and Ships Blocked
Image from Telegram purported to show the attack on the port area in Berdyansk on June 2
Maritime interests are again caught in the crossfire of the war between Russia and Ukraine. There are new reports of shelling in ports on both sides of the conflict as well as renewed efforts by Russia at blocking the ships for the grain exports from Ukrainian ports. The lower house of the Russian Parliament State Duma this week also adopted a law denouncing a Russian-Ukrainian treaty governing the joint use of the Sea of Azov and the Kerch Strait.
Videos surfaced on social media on Friday morning showing explosions in the port city of Berdyansk on the Sea of Azov in the annexed areas of Crimea in eastern Ukraine. Members of the Russian-installed government took to the Telegram social media channel blaming Ukraine for the explosions saying the city and specifically the port area was being shelled.
Reports said that Russian-controlled ships had recently arrived in the port to remove cargoes of grain and metals stored in the port and looted from Ukraine. It was unclear if the shelling or missiles was directed at the ships, but on Telegram the officials showed pictures saying the ships had fled the port for their safety.
Earlier this week, Ukraine accused Russia of damaging areas in the port of Odesa as Russia increased its attacks with missiles and drones across the country. Parts of the Port of Odesa were reportedly set on fire after a drone attack reported on Monday with officials highlighting that Odesa’s port is part of the grain deal which seeks to protect port infrastructure and provide safe corridors for the exports.
Ukraine continues to say that despite the recent agreement to extend the grain deal for two months that Russia is taking actions to block the exports. Data from the Joint Coordination Center (JCC) in Istanbul shows that no ships have been permitted to proceed inbound to Ukraine for the past two days. Only one ship a day this week has departed from the ports of Odessa and Chornomorsk loaded with foodstuff exports. The UN reports since May 24 that the number of inspection teams at the JCC has been reduced from three to two.
“The Russian Federation has informed the JCC of its decision to limit registrations to the port of Yuzhny/Pivdennyi as long as ammonia is not exported. And currently, it is not,” a UN spokesperson said during a briefing in New York on June 1. “The limited registrations and reduced inspection teams contributed to the drop of the average daily inspection rate down to three. This is a very serious situation.”
Separately, Reuters is also quoting sources saying that the Russian port of Taman on the peninsula separating the Black Sea and Sea of Azov is likely going to suspend shipments of liquefied petroleum gas (LPG). The unmanned sources cited the increasing danger from drones and the highly explosive nature of the gas exports to the news agency. According to Reuters, last year the complex shipped 328,000 tonnes of Russian and Kazakh LPG.
These moves come as the Russian Parliament moved to end a 2003 treaty between the two countries that guaranteed free passage for Russian and Ukrainian merchant and naval vessels in the Sea of Azov and the Kerch Strait. Earlier this year, President Vladimir Putin signaled Russian intention to denounce the treaty. In May, Putin submitted the treaty denunciation bill in the lower house and appointed Deputy Minister of Foreign Affairs Mikhail Galuzin to oversee the review process by the Federal Assembly.
“With the ongoing war and subsequent Russian control in Donetsk, Zaporizhzhia, and Kherson regions, it has given rise to a fundamentally new situation around the Sea of Azov and the Kerch Strait. The shorelines of the water bodies now fully belong to Russia. In this regard, Russia had to terminate the treaty now that Ukraine has lost the status of a littoral state with respect to the aforementioned maritime zones,” Galuzin said justifying the act.
In February, Kyiv terminated its cooperation with Russia on the Sea of Azov, citing blatant violations of the treaty conditions. Ukraine accused Russia of treating the Sea of Azov as a de facto inland sea, usurping the rights and jurisdiction of Ukraine as a coastal state to the water body. Experts said that the denunciation of the treaty is likely to jeopardize the operations of Ukraine’s ports in the affected regions, further straining the Black Sea grain export deal.
