Wednesday, March 20, 2024

CRIMINAL CAPITALI$M
Alleged $600 million nickel fraudster can’t pay his bills
Bloomberg News | March 19, 2024 | 

Stock image.

The businessman at the center of an alleged $600 million nickel fraud is struggling to pay £330,000 ($418,920) in legal fees, in a sign that his finances are under increasing strain.


Prateek Gupta was last year accused by commodities giant Trafigura Group of orchestrating a massive fraud against it. The company said that it had paid nearly $600 million for nickel, only to discover that the cargoes actually contained worthless rubble.

In December, a judge rejected Gupta’s attempt to lift a court freeze on his assets, saying that he had failed to present convincing evidence that Trafigura staff knew that there was no nickel in the cargoes it was buying. He was ordered to pay £330,000 on account toward Trafigura’s legal costs.

Gupta faced an initial deadline of late February to make the payment, and on Tuesday a judge ordered that around one-third of the overdue funds be paid by the end of next week.

Gupta’s lawyers argued that the London court should then wait for Gupta’s firms to sell steel sheet inventories rather than be required to liquidate his $71.7 million life insurance policies to pay the remaining amount.

“This is a short-term cash flow issue, and will not affect our ability to fight the case,” a spokesman for Gupta said in a statement. The businessman has significant illiquid assets, “which they are working hard to liquidate.”

While Trafigura says it paid nearly $600 million to companies linked to Gupta for cargoes that turned out not to contain nickel, it’s far from clear where those funds have gone.

Earlier this month, Trafigura’s lawyers said that several of Gupta’s companies had disclosed assets with only a “negligible face value,” as it successfully sought to force additional companies linked to Gupta to disclose information about their assets.

Several of Gupta’s companies have become insolvent since Trafigura first obtained the asset freeze last February. In December, TMT Metals Holdings Ltd., a UK holding company was wound up following a request by a broker. And UD Trading Group Holding Pte, a Singapore holding company, is also being wound up, according to filings.

Gupta’s lawyers said in court documents prepared for the hearing that the he and his companies were “experiencing a temporary period of impecuniosity.” They said his assets included zinc ingots, copper cathodes and steel sheets worth approximately $540,000, which he had sold to Noble Exim FZ LLC.

The lawyers said Gupta was able to point to potential assets that he controls including $191 million of funds that could be raised by selling the rights to “third party receivables” as well as settlement money from a court claim in Australia.

(By Jonathan Browning and Jack Farchy)
Dirty gold can still slip into London market, rights groups say

Reuters | March 19, 2024 |

Lagunas Norte mine in Peru. Image from Barrick Gold.

The London Bullion Market Association (LBMA), which sets standards for the world’s most established gold market, needs to do more to exclude gold linked to human rights abuses or criminality from its supply chain, rights groups said on Monday.


Refineries vetted by the LBMA still source gold from “questionable suppliers and mines” and are not tackling “serious human rights violations and environmental degradation,” a collection of eight organizations that analyze mining, led by Swissaid, said in a letter to the LBMA, seen by Reuters.

In an emailed statement in response to questions, the LBMA said it looked forward to discussing various proposals at an event in London later this week.

The LBMA, which governs access to the world’s largest bullion market, has, in common with other organizations, established initiatives to try to prevent problematic gold from passing through the LBMA’s refiners and into the vaults of banks.

One of these is the LBMA’s Good Delivery List (GDL), which catalogues refiners the body considers responsible sources of gold because of the due diligence systems they have in place.

Once accepted into a vault as Good Delivery, gold can be freely traded between players on the gold market.

The NGOs said that there had been “some slight improvements” in the LBMA’s systems since 2021, but that “many” refiners on list have, in recent years, sourced gold from suppliers linked to money laundering, land and water pollution, or human rights abuses.

This, in turn, allows problematic gold to enter the global market.

The letter cited cases that had been exposed by media or researchers across countries in Latin America, Africa and the Middle East but did not name any of the refiners.

“The LBMA has a key role to play in setting standards for the industry and holding its members accountable,” the groups said in their letter.

Refiners do not engage enough with the communities where the gold they process comes from, the groups said. The voluntary nature of the guidance on what information refiners publish leads to a lack of transparency over the origins of gold.

The letter cited the example of the United Arab Emirates being named in a 2023 report as the country of origin of nearly 150 metric tons of gold sold to GDL refiners in 2021. The UAE does not mine any gold but it has established itself as a hub for gold from all over the world.

“The origin of this gold is not the UAE, it was merely transited through this country,” the letter said, calling for refineries to report the origins of gold publicly.

The LBMA said it would address specific concerns brought up by the groups after a summit on the responsible sourcing of minerals this week.

(By Reade Levinson and David Lewis; Editing by Barbara Lewis)
Pebble mine developer sues EPA over Alaska mine veto

Reuters | March 18, 2024 | 

The proposed site for Alaska’s Pebble mine, at the headwaters of the rivers that empty into Bristol Bay. Credit: jsear | Flickr

Northern Dynasty Minerals, the developer of the proposed Pebble copper and gold mine in southwest Alaska, has sued the US Environmental Protection Agency seeking to overturn the agency’s veto of the project.


The developer on Friday filed a lawsuit in federal court in Anchorage challenging the EPA’s 2023 final determination prohibiting the discharge of mining waste in the state’s Bristol Bay over concerns the materials would degrade the watershed and harm important fishing ecosystems.

Northern Dynasty said the determination made under the Clean Water Act was arbitrary and capricious in violation of federal administrative law, because it failed to adequately consider the economic impact of the decision and used a “wild overestimate” of what protected waterways would be impacted by mining activity.

Northern Dynasty claims it has spent at least $1 billion over two decades in its efforts to develop the project, which was effectively killed by the decision, including $200 million on environmental studies.

“This is just another example of gross EPA overreach of the powers granted to it by Congress,” said Ron Thiessen, Northern Dynasty’s president and CEO, in a statement.

The EPA didn’t immediately respond to a request for comment on Monday.

The Bristol Bay watershed in southwestern Alaska supports the world’s largest sockeye salmon fishery and is known for its large mineral resources. The watershed also provides habitats for 29 species of fish, more than 190 birds and dozens of mammals, according to the EPA.

The proposed mine, which has languished in a lengthy approval and permitting process for decades but has not started construction, would tap one of the world’s largest copper and gold deposits.

The EPA claims it would permanently destroy over 2,000 acres of wetlands protected by the Clean Water Act.

The developer also filed a lawsuit against the US government on Thursday alleging the veto amounted to an unconstitutional taking of its property in violation of the US Constitution’s 5th Amendment, which says that private property can’t be taken for public use without compensation, in the US Court of Federal Claims in Washington, DC.

The state of Alaska also sued the US government in that court last week seeking $700 billion over the decision, arguing the EPA’s veto infringed on the state’s sovereignty and would deprive it of funds from taxes, licensing fees and royalties it would have received from the mine.

The state had already challenged the EPA’s decision last year directly with the Supreme Court, arguing it violated the state’s sovereign right to regulate its land and waters, as well as a 1976 land swap with the US government that gave the state ownership over the area in question.

The Supreme Court declined to take that case in January, but did not say why.

The developer’s new lawsuit in Alaska makes similar claims, arguing the Clean Water Act does not give the EPA authority to override the state’s preferences for using the lands for extracting valuable minerals.

The EPA had previously argued in a brief submitted to the Supreme Court that Alaska’s statehood and the land swap do not preclude the agency from evaluating projects to ensure they comply with environmental law.

The case is Northern Dynasty Minerals Ltd v. US Environmental Protection Agency, US District Court for the District of Alaska, No. 3:24-cv-00059.

For Northern Dynasty Minerals: Keith Bradley and Jeffrey Walker of Squire Patton Boggs

For the EPA: Not yet available

(By Clark Mindock)

BHP stands down 25% of nickel project workforce

Bloomberg News | March 17, 2024 | 

West Musgrave project area. (Image by BHP).

BHP Group Ltd., the world’s largest miner, has stood down around a quarter of the workers constructing its West Musgrave nickel and copper project in Western Australia, according to a report from the Australian Financial Review.


The workforce at the A$1.7 billion project has been cut from about 400 to 300 people, the AFR reported, without saying where it got the information. A company spokesman said the exit of some workers didn’t mean the entire project – acquired from OZ Minerals Ltd. last year – has been canceled, the AFR said.

In February, BHP took a $2.5 billion impairment on the value of its Australian nickel assets after a surge in supply of the battery metal dragged down prices. The miner also said it would shutter its Kambalda concentrator, which processes ore, and could mothball its other Australian nickel assets after a review.

The price of nickel — a metal traditionally used to strengthen steel that’s become key to the energy transition due to its use in electrification and batteries — has dropped 40% since the start of 2023 on the London Metal Exchange.

(By Georgina McKay)

Implats’ Zimbabwe unit plans voluntary job cuts to contain costs

Bloomberg News | March 18, 2024 | 
Impala Platinum’s Rustenburg operations. 
Image courtesy of Implats Distinctly Platinum

Impala Platinum Holdings Ltd.’s Zimbabwean unit is offering staff voluntary redundancy packages to cut costs because of anemic metal prices.


Weak platinum group metal prices are projected to last for the next 12 to 18 months, Zimplats Holdings Ltd. chief executive officer Alex Mhembere said in a staff circular dated March 18 that was confirmed by the company. The producer is beginning “a voluntary retrenchment exercise for all employees wishing to be considered,” which may “mitigate the need for a compulsory retrenchment,” the circular said.

Impala, known as Implats, and its PGM mining peers have already cut thousands of jobs in neighboring South Africa – which accounts for about 70% of global platinum output. The four largest producers have all recently released sobering earnings reports, with profits battered by a sharp slump in metals prices since the start of last year.

Employees at Zimplats – Zimbabwe’s biggest producer of PGMs – are being offered a minimum of three months’ pay and must submit their application forms by March 22, according to the circular.

“We have been working with all teams across the board in implementing various cost containment and cash preservation programs,” Mhembere said. “I am confident that as a team we will successfully navigate through the headwinds.”

(By Godfrey Marawanyika)
Sibanye halts production at Rustenburg shaft after damage

Reuters | March 20, 2024 | 

Impala Platinum’s Rustenburg operations. Credit: Impala Platinum

Sibanye Stillwater on Wednesday said it has suspended production at its Siphumelele shaft in Rustenburg, which accounts for nearly 4% of its South African platinum group metal output, after an accident damaged surface infrastructure.


The diversified miner said in a statement no injuries were reported from the Feb. 29 incident when an ore collector bin attached to the shaft headgear collapsed to ground, damaging a surface ore conveyor belt system.


The damage to the ore collector bin and collapse of the conveyor system had resulted in the suspension of production from the shaft, Sibanye said.

Investigations into the cause of the incident were underway, while its impact on annual production from the Siphumelele shaft is being assessed, it added.

The shaft was forecast to produce an average of 54,000 platinum group metal ounces in 2024, approximately 3.5% of Sibanye’s annual output from its South African PGM mines.

(By Nelson Banya; Editing by Louise Heavens)


South32 withdraws Australian manganese output forecast as cyclone shuts major mine

Reuters | March 19, 2024 |

Image courtesy of South32.

South32 withdrew its fiscal 2024 forecast for Australian manganese output on Wednesday after a cyclone disrupted operations at its Groote Eylandt Mining Co (GEMCO) unit.


The diversified miner had initially forecast a production of 3.4 million wet metric tons (amt) of manganese in fiscal 2024, slightly lower than 3.5 million amt produced in fiscal 2023



South32 is the world’s largest producer of manganese, used as a steel additive, and owns 60% of GEMCO while the rest is owned by Anglo American.

Operations at GEMCO were halted due to the impacts of Tropical Cyclone Megan, with initial assessments indicating flooding in the mining pits, the miner said.

The company has also confirmed significant structural damage to the wharf and port infrastructure at the mine with alternative shipping arrangements being evaluated.

“Further assessment of the full impact of the damage is ongoing,” the company said, adding that it will release manganese production forecast along with March quarter production results.

(By Roushni Nair; Editing by Ravi Prakash Kumar)

Rescuers battle rubble and water in race to save 13 trapped Russian miners

Reuters | March 20, 2024 

Search and rescue efforts are underway at the Pioneer gold mine in Russia. Credit: Ministry of Emergency Situations, Russia

Rescuers in Russia’s far east battled rubble and water on Wednesday in an attempt to save 13 miners who have been trapped 120 metres (390 feet) underground in a gold mine for nearly two days.


The miners were trapped on Monday by a rock fall at the Pioneer gold mine. The mine, one of Russia’s largest, is located in the Amur region which borders China, about 5,300 km (3,300 miles) east of Moscow.

“The situation remains difficult,” Amur Governor Vasily Orlov said on Telegram. Orlov said that specialist mine rescuers had flown in from Russia’s vast coal region, the Kuznetsk Basin known as Kuzbass, and other Siberian regions.

He said hundreds of rescuers had cleared swathes of rubble and rock and that they were pumping out water. There was no contact with the trapped miners.

Orlov said that rescuers had decided to drill down through several hundred metres of rock to where the miners are, in an attempt to assess their condition and establish contact.

President Vladimir Putin has been informed of the situation and ordered that every effort be made to save the miners, the Kremlin said on Tuesday.

Russian emergency services said on Wednesday that the volume of rubble and rock at the mine was nine times larger than previously estimated, the RIA state news agency reported.

The mine is owned by sanctions-hit Russian copper and gold producer UMMC.

(By Guy Faulconbridge; Editing by Mark Trevelyan)


Thirteen miners trapped in Russian gold mine, authorities say

Reuters | March 18, 2024 |

Credit: UMMC

Thirteen miners were trapped after a rock fall in a gold mine in Russia’s Amur region, Russia’s Ministry of Emergency Situations said on Tuesday.


“Communications are being restored and mechanized clearing of the transport slope is being carried out,” the ministry said on the Telegram messaging app.

The accident occurred at the Pioneer mine, one of the largest gold mines in Russia based on processing capacity, Russian media reported. The mine is located in the Eastern Siberia Amur region that borders China to the south.

The mine is owned by sanctions-hit Russian copper and gold producer UMMC.

(By Lidia Kelly; Editing by Lincoln Feast)


Pakistan mine explosion: 12 killed in Balochistan

Eight other miners have been injured following an explosion in a private coal pit, with an official suspecting the incident to be caused by methane gas.















Deadly incidents are not uncommon in Pakistan's mines as miners work under hazardous conditions and poor safety standards
 Iqbal Hussain/Xinhua/IMAGO

An explosion inside a coal mine in southwest Pakistan has left 12 miners dead while eight others have been rescued, officials said on Wednesday.

A gas explosion shook the private coal pit in Balochistan's mining region of Khost on Tuesday evening, trapping the workers about 800 feet (244 meters) below ground.

The bodies of the dead were all recovered as the rescue operation ended on Wednesday morning.

"The rescue operation has been just completed," Balochistan province's chief inspector of mines, Abdul Ghani Baloch, told news agencies on Wednesday.

He said that 20 miners had been inside the mine when the explosion took place.

The injured have been taken to hospital, he added.
Possible methane gas incident

According to news agency AFP, Abdullah Shahwani, Balochistan's director general of mining, also confirmed the death toll and said that "initial reports suggest the incident was caused by methane gas."

Pakistan's Prime Minister Shehbaz Sharif in a statement expressed his grief over the deaths.

Pakistan's mines are known to have hazardous working conditions and poor safety standards and deadly incidents are not uncommon.

dvv/fb (AFP, AP, Reuters)


12 killed, 8 rescued after coal mine collapses in Harnai district

Reuters | AFP | Dawn.com Published March 20, 2024 
Miners gather outside a collapsed mine as rescue personnel conduct a search operation for trapped workers after a gas explosion rocked the private coal pit in Harnai district. — Mines and Minerals Development Department Balochistan via AFP

Twelve miners were killed and eight rescued after an explosion in a coal mine in the Zardalo area of Balochistan’s Harnai district, officials said on Wednesday.

Earlier, it was reported that 18 miners were trapped after a big portion of the mine caved in when a powerful explosion took place. The directorate of chief inspector of mines had said that teams launched a rescue operation.

“The rescue operation has been just completed,” said Balochistan chief inspector of mines Abdul Ghani Baloch on Wednesday morning.

He said that 20 miners had been inside the mine when a methane gas explosion took place overnight. He added that rescue teams recovered 12 bodies while the survivors had been taken to hospital.

“Two bodies were recovered during the night, with the remaining 10 retrieved early in the morning,” Baloch told AFP.

However, Balochistan Chief Minister Sarfraz Bugti stated on social media platform X that the number of rescued miners was six.

Abdullah Shahwani, the province’s director general of mining, also confirmed the death toll.

It was initially thought that there were only ten miners involved in the cave-in about 80 kilometres east of Quetta. Rescue workers from the government mining department and the disaster management agency toiled through the night to reach them.

A group of eight people who were attempting to rescue their colleagues also became trapped for several hours but were later brought to safety by a government rescue team — some of them unconscious.

Prime Minister Shehbaz Sharif issued a statement expressing “profound sorrow and grief over the loss of precious lives”.



According to Radio Pakistan, the premier directed that all possible medical treatment be provided to the injured miners.

CM Bugti termed the rescue operation “very risky”, adding that “unregulated mining in Balochistan is a big problem”.

In a post on X, he said the provincial government would soon “announce and implement policies to protect miners”.



Terming such incidents as “very painful and sad”, he said the government would provide all possible relief to the injured and affected families.

National Assembly Speaker Sardar Ayaz Sadiq and Deputy Speaker Syed Ghulam Mustafa Shah also expressed their grief on the incident.

Conveying their condolences to the bereaved families, they prayed for the speedy recovery of the injured.




Past incidents


Coal deposits are found in the western areas of Pakistan that sit near the Afghan border and mine accidents are common, mainly due to gas build-ups.

Mine workers have complained that a lack of safety gear and poor working conditions are the key causes of frequent accidents, labour union officials have said in the past.

“This incident is neither the first nor will it be the last in Balochistan,” Lala Sultan, head of the Balochistan Coal Mines Workers Federation told AFP.

“Safety measures at coal mines are scarcely implemented. While other provinces have some safety protocols in place, in Balochistan safety is utterly neglected.”

In December, two coal miners were killed and three injured when a fire broke out in a private mine in Balochistan’s Duki coal field.

In September last year, three workers were buried under the rubble of a coal mine in Sindh’s Jamshoro when a mine caved in.

Earlier the same year, a coal miner was killed and three received burn injuries in a methane gas explosion in a mine in the Duki coal field.

A year ago, at least six miners were killed in a gas explosion inside a coal mine in the Harnai district.

In May 2018, 23 people were killed and 11 more wounded after gas explosions tore through two neighbouring coal mines in the same region.

A total of 43 workers also died in 2011 when gas explosions triggered a collapse in another Balochistan colliery.


AngloGold Ashanti maintains output forecast after flooding at Australia mine

Reuters | March 19, 2024 | 

AngloGold discovered Tropicana in 2005, 330 km east-northeast of Kalgoorlie. (Image courtesy of Tropicana JV.)

AngloGold Ashanti expects to meet its gold output target of up to 2.79 million ounces this year despite flooding at its Tropicana mine in Australia, the company said on Tuesday as it reported a headline net loss of $46 million for 2023.


The loss was mainly due to lower gold sales, corporate restructuring costs, higher environmental provisions as well as costs of job cuts, care and maintenance at Córrego do Sítio in Brazil, which was idled last August.

It compares with a restated headline profit of $489 million the year before. AngloGold Ashanti, which also has operations in Africa and the Americas, restated its financial statements for 2022, which the company said “contained an error related to the reported amount of the deferred tax asset with regard to the Obuasi mine” in Ghana.

The miner said while it anticipated gold production at its Tropicana mine to be impacted during the first half of 2024, “any decrease is expected to be largely recovered in the second half”.

“Consequently, the company does not believe that this event will have an impact on its gold production and cost guidance provided in February 2024, which guidance is therefore maintained,” AngloGold Ashanti said.

Tropicana, which is 70% owned by AngloGold Ashanti and contributed 310,000 ounces or 12% of the group’s total 2023 output, was impacted this month by heavy rains and flooding.

Mining operations have been restricted due to the flooding, while the processing plant is treating stockpiled ore at a reduced throughput rate, AngloGold Ashanti said in a statement.

(By Nelson Banya; Editing by Emelia Sithole-Matarise)

Tropical Cyclone Megan closes major mine in Australia’s north
Bloomberg News | March 17, 2024 | 

Located on an island in Australia’s Gulf of Carpentaria, Groote Eylandt (GEMCO) produces high-grade manganese ore. Credit: Groote Eylandt Mining Company

Residents in Australia’s far north are bracing for destructive winds and intense rainfall as Severe Tropical Cyclone Megan moves closer to the coastline, prompting evacuations and the closure of a major manganese mine.


The category three cyclone in the southwestern Gulf of Carpentaria is forecast to cross the coast Monday, according to an update from the Bureau of Meteorology. After making landfall, it’s expected to weaken during Tuesday and move west across the Northern Territory as a tropical low, the bureau said.

The storm has already led to the closure of a manganese mine on Groote Eylandt island, the world’s largest producer of the metal, according to the Northern Territory government. The mine’s production value was A$1.53 billion ($1 billion) in 2022-23, it said. The storm may also impact Shell Plc’s Prelude liquefied natural gas plant off the coast of Western Australia.

The very destructive core of the storm is expected to impact the coast between the Northern Territory and Queensland border with winds of up to 200 kilometers (124 miles) an hour, according to the bureau. About 800 people are likely to be evacuated from the Indigenous community of Borroloola to Darwin on Monday, federal Agriculture Minister Murray Watt said in a radio interview.

Another tropical low storm northwest of the Pilbara coast is expected to remain weak until Tuesday, the bureau said. From Wednesday, it is forecast to move steadily westward across the Indian Ocean and have an increasing chance of developing into a tropical cyclone. At this stage, there is no threat of any direct impacts to the Pilbara coast, it said.

(By Keira Wright)

 

Cruising, Connectivity and Collaboration

SES O3b mPower
Illustration courtesy SES

PUBLISHED MAR 19, 2024 8:16 PM BY GREGORY MARTIN

 

 

Connectivity is crucial to enable successful maritime operations. This includes powering the increasing range of onboard software that keeps vessels on the optimal route for safety, efficiency, and emissions in today’s climate-conscious world, as shipping’s decarbonization requirements increase. Connectivity is also critical for safeguarding crew welfare. Providing seafarers access to social connectivity is mandatory in line with The Maritime Labour Convention, which ensures that seafarers can stay connected with their loved ones at home.

The cruise sector is facing huge pressure to remain competitive and deliver the stellar customer experience that’s expected by today’s passengers. Cruise passengers in 2024 want the best of both worlds. They want to travel, enjoy a break from the office and get a change of scenery but also expect the always-on, quality, reliable connectivity they have back home. This includes being able to stream the latest boxset on Netflix, post social media content or even check emails and access other business cloud services as needed while on board.

With passengers expecting high speed Wi-Fi throughout their voyage as standard, the onus is on cruise lines to deliver high throughput, speed, and availability, low latencies, and exceptional bandwidth regardless of location. However, this is not always easy to achieve. Many cruise routes cover vast and remote areas where establishing and maintaining communication infrastructure has historically been challenging, resulting in bandwidth restrictions and coverage restraints when at sea. Solving these challenges requires connectivity providers and cruise operators alike to collaborate and address these demands, rather than working in silos. 

Delivering success with a multi-orbit fleet

Multi-orbit constellations enable high speed, high bandwidth, and low latency satellite-based connectivity. This enables cruise operators to meet two key challenges simultaneously: provide customers with the same level of service they would enjoy on land, and power software and other technologies that optimize operations for commercial and sustainability benefits, whilst reliably reporting against emissions reduction targets.

Switching between satellites in medium earth orbit (MEO) and geostationary earth orbit (GEO) to deliver network resiliency, no matter the location or weather conditions at sea. This is critical for cruise passengers or crew who may be taking video calls, streaming movies, or are using software that shares safety, operational and vessel performance information.

SES’ O3b constellation has been used by most major cruise lines for more than a decade, and its second-generation MEO system, O3b mPOWER, is expected to begin service in 2024. SES’ multi-orbit fleet now includes a new offering in partnership with Starlink, which combines the best of GEO, MEO and LEO orbits.

The power of collaboration

Customer and operator demands across the cruise sector are only set to grow in 2024. Passengers expect exciting onboard experiences, constant connectivity, and new routes to remote locations, while cruise lines are under increasing scrutiny to measure and manage their climate impact. Collaboration and partnerships between the cruise industry and connectivity providers are key to staying ahead of these evolving demands and using connectivity to seamlessly achieve stellar guest experiences, enhanced safety, and operational efficiency.

Gregory Martin is VP Maritime Market at SES.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Saving Biology With Blue Biotechnology

Marine sponges, Flower Gardens National Marine Sanctuary (NOAA)
Marine sponges, Flower Garden Banks National Marine Sanctuary (NOAA)

PUBLISHED MAR 17, 2024 6:09 PM BY ABHAY H. PANDE AND J. ANAKHA

 

 

The significance of blue colour, representing water bodies (blue bodies) on the Earth, becomes evident while understanding the biological uniqueness of the universe. Water has been essential to countless ecological cycles and processes in addition to providing the environments required for life to evolve and flourish.

However, the unrelenting quest of mankind for material gain and economic expansion has resulted in widespread pollution, habitat destruction, and mismanagement of water resources. From industrial discharge to plastic pollution, from overfishing to deforestation along waterways, the cumulative impacts of human actions have taken a heavy toll on our blue bodies. This article briefly summarizes the extent of destruction inflicted upon these vital resources by human activities as well as how we can use blue biotechnology as a transformative application to heal and sustainably use the aquatic resources.

Earth’s blue bodies from ponds to oceans serve as important sources of energy, food and health for living beings and humans have been modifying the blue bodies for thousands of years. Although these activities have been essential to the growth of humanity (economic and social), they have also had a negative impact on the health of our blue bodies. In the majority of situations, water serves as the ultimate destination for our garbage, chemicals and other pollutants we release (Figure 1) and numerous studies have demonstrated that the rate of (man-made) water contamination has increased more than ever, due to advances in industry and urbanization.

Figure 1 Anthropogenic causes of water pollution. The figure was created using free icons available from Flaticon at: www.flaticon.com

Many resources that assist humanity are found in blue bodies, and a sizable fraction of the world's population depends heavily on the ocean and coastline for existence. It is to be noted that about 90% of the ocean's surface has been impacted by humans, which has resulted in drastic decrease in the number of current marine biodiversity compared to 1970 levels. The ocean ecosystem's resilience to tremors, potential to adjust to climate change, as well as its ability to fulfill its function as a global ecological and climate regulator are all being weakened by the loss of marine biodiversity. In addition, research on climate change has revealed that, in the event that greenhouse gas emissions continue to rise, the majority of all marine species on Earth will be in risk of becoming extinct by the year 2100. Exploitation, dredging, trawling, and development of the coastline also contributed to the loss of feeding and reproduction habitat of the marine ecosystem.

In recent years, there have been several significant coral bleaching events that have resulted in the disappearance of many corals due to water pollution, which raises the temperature and acidifies the water. This decrease in coral cover has resulted in a 60% decline in reef biodiversity and a negative impact on coastal populations10. In summary, humans have been remarkably successful in exploiting the resources provided by the blue bodies, however, this has resulted in a multitude of natural disasters, including the extinction of numerous aquatic species and ecosystems, the decline of marine biodiversity, excessive or insufficient sedimentation of the sea, increasing coastal erosion, and so forth.

Water wars: an emerging reality?

It's widely believed that conflicts in the future are going to revolve around water. Sharing of international waterways is expected to give rise to these ‘water wars’, which are defined as armed confrontations between multiple nations over limited water supplies. While, there is a persistent belief that water wars will remain a myth due to technological and resource advancements, statistical research and analyses indicate that this may not be the case. Several predictions suggest that between 2030 and 2050, the earth's water distribution will change drastically, and the vast majority of the planet will not be able to replenish the water that mankind have consumed and contaminated. According to the World Population Clock 2024, the global population is expected to expand by 73 million people annually or at a pace of about 0.91%.

But the amount of the available fresh water is not increasing, and if we don’t take necessary actions, the same amount of the water will be distributed to more number of people. Also, it is to be important to remember that, freshwater makes up only 3% of the world's water resources, and that a significant amount of it is extremely challenging for humans to access due to its location on the poles. Estimates suggest that mankind is presently consuming approximately half of the freshwater supply, and it is projected that this rate will grow in just a few decades. From the Lagash-Umma dispute over water and irrigation in ancient Sumeria in 2500 BC to Israel's retaliatory attacks on Gaza's water supplies in 2023, a total of 1634 major conflicts were recorded in the water conflict chronology database created by the Pacific Institute. This database itself serves as further evidence that water wars are real issues rather than an imaginary piece.

Blue Biotechnology

According to the Organization for Economic Cooperation and Development (OECD), blue biotechnology or marine biotechnology is defined as ‘the application of science and technology to living organisms from marine resources, as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services’. The primary focus of the current definition is on measures to enhance accessibility of marine resources and how we can benefit from them. Therefore, it is essential to expand and redefine the term blue biotechnology as “a field of biotechnology that uses technical advancements that can heal or restore the harm we inflicted to the blue bodies as well as assist us in utilizing them”. Figure 2 summarizes the use of blue biotechnology for healing and sustainable resource utilization of blue bodies.

Blue biotechnology for healing our blue bodies

Blue bodies are the primary global recipient of contaminants, making water pollution a concerning and pressing issue. Various efficient biotech tools have been proven to be useful in addressing water pollution (Figure 2). Utilizing the unique metabolic processes of bacteria, fungus, yeast, microalgae, and microbial mats, bioremediation methods are a potential approach for cleaning up blue bodies. It is carried out through either bioaugmentation, which introduces viable populations of microbes or by biostimulation, which entails stimulating the native microbial population, for the biodegradation of aquatic contaminants.

Furthermore, the potential of marine microorganisms for bioremediation has been enhanced with the aid of biotech tools. Genetic engineering approaches can modify the catabolic potential of various organisms that are able to thrive and remain active in harsh environments or polluted areas. Using sensitive biotech techniques, like polymerase chain reaction (PCR), these microorganisms and the newly introduced catabolic genes can be tracked and even quantified. Remarkably, these bioremediation solutions are value-added, environmentally benign, and commercially viable.

The blue bodies also serves as the ‘carbon sink’ of our planet and also have a vital role in resisting the effects of change in the climate. As per one estimate, from the onset of industrialization, we have raised CO2 levels in the atmosphere by 50% and in the ocean's uppermost layer by 30%. This CO2 pollution leads to thermal and chemical stress on our blue bodies resulting in increased temperature of and change in the ocean chemistry, adversely affecting the marine biodiversity. Biological capturing, sequestration of contaminants by microbes, has emerged as one of the most efficient and significant carbon sequestration techniques in the globe today. This technique has also been proven to be a sustainable, cost-effective, and ecologically friendly approach. The potential of microalgae for metabolizing CO2 is 10-50 times greater than that of other terrestrial plants.

Another biotech application is ocean fertilization, commonly referred to as ocean nutrition, which is the introduction of nutrients into the ocean to promote the growth of marine microorganisms. Ocean fertilization has the potential to promote phytoplankton development, which can sequester and store more CO2. Therefore, biotechnology is an essential tool with enormous potential to repair the severe damage that humans have inflicted to the blue bodies. Biotechnology is constantly advancing, which makes us more capable of repairing the harm we have caused, even though there are still challenges to face.

Blue biotechnology for sustainable use of aquatic resources

The discipline of blue biotechnology is a rapidly growing area of study that looks into the abundant biological resources present in our blue bodies for a range of uses in industry, science, and medicine. However, while humanity is benefiting from theseresources, the declining rate of marine populations is also alarming. However, sustainable marine resource utilization can be made possible through marine bioprospecting, which is defined as "the systematic inquiry for interesting and novel genes, metabolites, molecules, and organisms from the marine environment that might be useful to the society and have economic potential to commercial product development." Currently, microorganisms account for almost 60% of the production of new marine natural products and because of the wide range of genetic alterations possibilities of marine microbes, they are becoming more significant for sustainable blue biotechnology. Numerous nations, including US, Japan and Europe, already have a thriving marine-based nutraceuticals business, and the market has grown significantly in the last ten years, across the globe. In light of this, blue biotechnology has become crucial for meeting the growing demand for nutritious, quality sea food while conserving the marine resource diversity.

Marine-derived therapeutics has gained huge importance in recent decades. For instance, sponges are known as the ‘drug goldmine’ because of the enormous diversity and therapeutic potentials of their secondary metabolites. Cytarabine, the first marine-derived anticancer drug to be produced for clinical use, was isolated from sponge and is being routinely used for the treatment of leukemia and lymphoma.

Due to the marine environment's relatively undiscovered biodiversity in comparison to the terrestrial environment, more medicinal compounds are now being separated from the blue bodies. Figure 2 summarizes the use of blue biotechnology for healing and sustainable resource utilization of water resources.

Figure 2. Blue biotechnology (BT) for healing and sustainable resource utilization of Blue bodies. The figure was created using free icons available from Flaticon at: flaticon.com.

Moreover, the notion of ‘blue bioeconomy’ is becoming increasingly significant due to the enormous potential of marine resources to increase human well-being and marine resource biotechnology has seen a steady increase in applications related to the market in recent decades. Our ability to produce high-quality protein and materials that are financially significant for human welfare, has improved because of the use of biotechnology tools in aquaculture farming, which involves the commercial rearing of aquatic animals and plants under human intervention. Therefore, biotechnology is assisting us in the resilience building and restoration of local marine populations that will further enhance the overall conservation of marine ecosystem. It also helps us in promote a restoration culture, and safeguard and improve blue economy investments that depend on thriving marine ecosystems.

Concluding remark

Blue biotechnology has its foundations in the profound understanding that water is the cradle of all life. From pharmaceuticals to renewable energy or from food security to environmental conservation, the applications of blue biotechnology are broad and far- reaching. Blue biotechnology is thus defined currently with an emphasis on using marine resources to advance humankind. However, blue biotechnology also provides viable strategies to mitigate anthropogenic impacts to our blue bodies. Thus, this sector offers opportunities for both the preservation of the environment as well as the growth of humanity through the sustainable utilization of marine resources.

Furthermore, it is imperative to utilize blue biotech applications cautiously and effectively, while also imparting this knowledge to the younger generation. It will be beneficial if we could introduce biotechnological concepts in the school curriculum at very early levels that will help build a foundational understanding and foster curiosity. Offering students the opportunity to engage in practical biotechnology experiments can increase their learning and ignite their interest in the subject. In addition to teaching future generations about the ethical and regulatory boundaries governing biotechnological tools, it is crucial to emphasize their role in promoting sustainable resource utilization. This will instill an understanding of the importance of responsible innovation and adherence to regulations.

Thus, acknowledging the equal importance of aquatic ecosystems alongside humanity, harnessing sustainable blue biotechnology can propel mankind advancement while simultaneously preserving and restoring blue bodies or in essence saving Biology by Biotechnology.

About the authors

Abhay H Pande is professor at the National Institute of Pharmaceutical Education & Research (NIPER), S.A.S Nagar, India, with more than 27 years of experience in biotechnology. This endeavor has resulted in an academic portfolio comprising numerous patents and articles in esteemed journals.

J Anakha is currently a doctoral researcher under the guidance of Professor Abhay H Pande at the NIPER, S.A.S Nagar, India. She holds a master’s degree in Biochemistry and Molecular Biology from the Central University of Kerala.

 

Earth's Oceans Continue Yearlong Streak of Heat Records

Global sea surface temperature anomaly chart, March 18. Red indicates above-average values. The North Atlantic is of particular concern to climate scientists (UMaine / NOAA)
Global sea surface temperature anomaly chart, March 18. Red indicates above-average values. The North Atlantic is of particular concern to climate scientists (UMaine / NOAA)

PUBLISHED MAR 18, 2024 11:21 PM BY THE MARITIME EXECUTIVE

 

 

When the ocean's average surface temperature hit a new record high in March 2023, it set off alarm bells in the scientific community - but few experts predicted that ocean temperatures would keep climbing off the chart. The average sea surface temperature has set a new daily record every day for the past 12 months, and is now beating the records set last March. 

In the near term, the most immediately visible effect has been coral bleaching - the loss of photosynthetic algae that lives on (and grows) a coral reef. Australia's famed Great Barrier Reef is in the middle of a damaging bleaching event now, and the Florida Keys' corals suffered through historic bleaching conditions last year. 

Global average sea surface temperatures from March 2023 (orange) through March 2024 (blue) broke daily records every day for a year, and set new all-time records multiple times (UMaine / NOAA)

The ocean surface temperature is still rising, and climate scientists aren't entirely sure why. Climate change would be an easy explanation, but the pace is much faster than the increases predicted by climate models. The El Nino weather pattern is a major natural driver of average surface temperature, but it is currently fading, and the thermometer is still rising. 

One possible explanation could be cleaner air. Since the IMO2020 sulfur regulation took effect, ships are emitting far less SOx in their exhaust, meaning that there is less sunlight-absorbing pollution over the trade lanes. A similar phenomenon may be occurring with Saharan dust storms, which usually send vast quantities of particulate matter drifting out over the Atlantic - but are not doing so with the usual intensity. Reduced levels of these pollutants would let more light through to the surface, heating up the ocean. 

“I’m not hearing any scientists that have a convincing explanation of why it is we’ve got such a departure,” marine geophysicist Rob Larter of the British Antarctic Survey told the New York Times. "The impression at the moment is that things have gone further and faster than we expected."

Marine scientists warn that the heat could get worse in 2024, and that could have big implications for the hurricane season. Warm water fuels tropical storms, and the North Atlantic has never been warmer in recorded history. When combined with an expected La Nina weather pattern, which favors hurricane development in the Atlantic, the heat could fuel an "explosive hurricane season," meteorologist Stephanie Abrams of The Weather Channel said last week. 

 

Ukraine Working to Restart Container Shipping and Build Danube Exports

Ukraine containership
Hong Kong-flagged containership Joseph Schulte was able to escape Odesa last year but container service remains suspended (Alexander Kubrakov/Facebook)

PUBLISHED MAR 19, 2024 1:46 PM BY THE MARITIME EXECUTIVE

 

 

Ukraine looks to restore container traffic after its success since August 2023 at building grain shipments on its Black Sea corridor. Government officials highlight the addition of container service as well as the expansion of shipments on the Danube will support both the exports as well as increase imports while lowering the cost of goods and transport for Ukrainian businesses.

"The negotiations with the owners of containerships are ongoing, and we've already settled the insurance matter under the Ukraine Facility program," member of parliament and deputy minister Dmytro Solomchuk is quoted as saying in an interview on the Verkhovna Rada of Ukraine website. "It's crucial that both container shipowners and product customers have a vested interest in insurance. Funds for this are already secured. I'm confident that the beginning of container transportation will undoubtedly bring significant economic benefits."

Container movement by sea has been suspended for the more than two years since the Russian invasion and the blockading of the Black Sea ports. Last summer, a few containerships used the corridor largely to escape sequestration in the Black Sea ports, but the corridor has largely been for bulkers mostly transporting grain and ag products with smaller amounts of metal products.

Between August and the end of 2023, Ukraine highlighted that about 13 million tonnes of products were exported to 24 countries using the sea corridor. Deputy Prime Minister Oleksandr Kubrakov said 420 vessels had loaded in Ukraine’s Black Sea ports and traveled the corridor in 2023. Recently, he was quoted as saying it is now approaching 30 million tonnes and more than 1,000 vessels.

Resuming container shipments is extremely important for farmers said Solomchuk, who said that they could form small batches of grain and load it into containers. Also, he highlights the potential to ease the logistics for imports and reduce costs.

"If we start container transportation, the total volume of goods turnover could soar to thousands of tonnes daily,” predicted Solomchuk.

 

Containers are moving on the Danube and they hope soon through the Black Sea ports (Ukrainian Danube Shipping/Facebook)

 

Kubrakov is also highlighting the Danube as “an alternative and effective route for Ukrainian exports,” saying they are ready to increase exports from the Danube ports by using container barge caravans. He said since the beginning of 2024, 3.7 million tons of cargo have been moved on the Danube, including 2.5 million tonnes of ag products. By expanding shipments on the Danube to the EU he says they can also redirect blocked cargoes bypassing the Polish border.

The Ukrainian Danube Shipping Company is set to offer a comprehensive logistics service to transfer cargoes including grain as well as containers and metals said Deputy Direct General of the shipping company Vladislav Belakh. He said an agreement is in place with Hungary and they are working with Austria and Serbia.

“The potential of the Danube freight base is huge,” said Belakh. He said so far they are moving grains and ag products with volumes gradually increasing. This month he said supplies of iron ore raw materials will rise to the highest mark in the last year. He also looks to start transporting coal for themeral power plants.

Building exports and restoring imports is another critical step to restoring Ukraine’s economy.