Tesla Germany staff to elect new council to gain control over work conditions

Reuters | March 16, 2024 | 

Tesla’s gigafactory Berlin-Brandenburg. (Image by Michael Wolf, Penig, Wikimedia Commons.)

Tesla’s staff in Germany will elect a new works council next week, when the IG Metall union hopes to gain greater influence over pay and working conditions after it accused the the US carmaker of inadequate safety provisions.


A suspected arson attack caused production at the plant near Berlin to be halted for a week earlier this month, prompting Tesla chief executive Elon Musk to visit this week.

The elections for the new works council, to be held on March 18-20, are aimed at filling 39 seats, according to IG Metall, the top German trade union which has put forward 106 candidates in an attempt to get a majority.

That would enable it to elect the council’s chairperson and gain greater control over areas where the union has taken issue with the carmaker, which is known for its critical stance towards unions.

Among IG Metall demands is to hire new employees, better planning of working hours, at least 20 days of freely available vacation, better health protection, more security, higher pay and shorter working hours.

“Too often, savings are made on accident protection for ‘Tesla Speed’. That has to change,” IG Metall district manager Dirk Schulze said in a statement.

In order to end the understaffing of shifts, temporary workers should be hired, the union added.

Michaela Schmitz, the plant’s current works council head, told Reuters in e-mailed comments that much had been achieved over the last two years, including pay increases of up to 18%, improvements in occupational health and safety and benefits, including bike sharing and free bus rides.

“All of the aforementioned successes were achieved without the union or a collective bargaining agreement, quickly, easily and customised to Giga Berlin,” she said, adding that meant there was no need for “external influences in the future” – implying IG Metall.

In October, Tesla rejected IG Metall claims that health and safety provisions at its gigafactory near Berlin were inadequate, saying protecting workers was a top priority.

The company also last year raised salaries for the plant’s 12,500 workers, which regional IG Metall head Dirk Schulze welcomed at the time, while still calling for better working conditions at the plant.

(By Christoph Steitz; Editing by Barbara Lewis and Clelia Oziel)

Gold beans all the rage with China’s Gen Z as deflation bites

Bloomberg News | March 17, 2024

(Reference image by Rob Corder, Flickr.)

With China’s deflation at its worst in 15 years, a volatile stock market and bank interest rates too low for her liking, 18-year-old Tina Hong is placing her financial security in gold beans.


Weighing as little as one gram, the beans — and other forms of gold jewelry — are increasingly viewed as the safest investment bet for young Chinese in an era of economic uncertainty. It’s part of a larger consumer trend for all things gold — from bullion to beans and bracelets — that has gripped the mainland.

“It’s basically impossible to lose money from buying gold,” reasoned Hong, a college freshman studying computer science in Fujian province who in January began buying gold beans because of their relatively low cost of about 600 yuan ($83) per gram. She has more than two grams of the beans and will continue buying them as long as costs are lower than international gold prices, she said.

Branded as an investment entry point for young consumers, the beans, which come in glass jars, are the latest hot-selling items in Chinese jewelry stores. Generation Z consumers — buffeted by high youth unemployment and the nation’s slide into deflation — are now among the top consumers of gold accessories in the world’s second-largest economy, according to the 2023 China Jewelry Consumer Trends Report by Chow Tai Fook Jewelery Group Ltd. The attraction of gold comes as people pull back on shopping amid months of disappointing growth.
China gold rush

A lack of faith in traditional investments has fueled this new China gold rush.

The nation’s stock market has seen declines after reopening from the pandemic, with one of its key benchmarks dropping to levels last seen in 2018. The country’s middle class is bearing the brunt of a property downturn — while the central bank has lowered a key interest rate four times since December 2021, eating into the return on wealth management products.


Young people are skipping “pleasurable consumption” and instead purchasing “asset-style jewelry” such as gold beans for adornment and investments, said Nikos Kavalis, managing director at the London-based consultancy Metals Focus Ltd.

However, he cautions that it makes no sense to invest in gold beans — or other gold items — because their price is often 10% to 30% higher than the commodity’s spot price. Investors would be better served by parking money in gold ETFs, he said.

Still, the fascination with gold is sweeping across social media. On Weibo, the Chinese equivalent of X, formerly Twitter, the hashtag “Why Are Young People Getting into Buying Gold” garnered 91 million hits. A lively discussion about the enduring value of gold dominates the social media site, with one popular post stating that “buying gold keeps troubles at bay.”

Three-quarters of gold consumers are now estimated to be between 25 and 35 years old and many believe investing in gold is low-risk, according to a 2021 report from the World Gold Council. That belief is reinforced as gold prices have hit multiple historic highs since December. Gold bullion passed the $2,100 per ounce threshold for the first time this month.

Sales of gold, silver and jewelery reached a six-year high in December, a 29.4% year-on-year jump, according to government data. Precious metals now represent one of the fastest-growing consumer markets in China.

Buying gold beans for gifting and investments also reached a peak during China’s lunar new year, says a spokesperson from Chinese jeweler Luk Fook Holdings International Ltd.

Even banks have joined traditional gold retailers to sell gold beans. China Merchants Bank Co., for example, introduced its line of gold bean sets in July 2023.

“Despite the recent surge in China’s gold price, consumers are still demonstrating a strong preference for gold,” said Cindy Yeung, chairwoman and managing director of Emperor Watch & Jewellery Ltd. Like other major jewelry retailers, Emperor is talking up gold on social media and e-commerce platforms.
Impure beans

There are perils for consumers of gold beans and other gold objects who aren’t knowledgeable about the difference between authentic gold and fakes, experts say.

Lily Chen, a 26-year-old Shanghai office worker, discovered almost all of the gold beans she had purchased were mixed with iron, zinc and copper when she recently tried to exchange them for a gold bracelet.

“I never tried cutting corners by buying gold at ultra-cheap prices, and I made sure to buy from star-rated web stores. But this could still happen,” she said.

Nonetheless, the craze for anything gold continues to play out on social media. College students are posting diary-like entries on gold purchases, couples share how they repaired strained relationships with gold gifts — and metal resellers and collectors offer gold investing advice.

Put sanctions on Russian-origin aluminum, not on Rusal, industry group says

Reuters | March 18, 2024 | 

Aluminum smelter. (Reference image by UC Rusal Photo Gallery, Wikimedia Commons).

Industry group European Aluminium wants the European Union to impose sanctions on aluminum supplied from Russia but not EU-based companies owned by Rusal, which produces bauxite and alumina outside Russia some of it imported by Europe.


The group has been lobbying the EU for a ban on Russian-origin aluminum for its invasion of Ukraine. So far sanctions have not been imposed but they are still on the agenda.


Rusal sold 4.2 million metric tons of aluminum last year, most of it produced in Russia. The world’s largest aluminum producer outside China also has operations in Ireland, Sweden, Jamaica, Guinea and China. These assets mainly produce alumina or bauxite.

Bauxite is converted into alumina, a raw material to make aluminum used by companies in construction and packaging. It is also a key metal for the transport sector, where it is used for lightweighting electric vehicles to help extend battery range.

“The principle behind EU sanctions has been to try and do as much as possible to undermine the Russian war machine without creating harm to European industrial and by extension, societal interests,” Paul Voss, director general of European Aluminium.

“In a perfect world we would say we don’t need any of Rusal’s material and take a firm moral position regardless of the practical consequences. But European governments do not and cannot afford to reason that way. They have to be pragmatic.”

The EU currently has bans in place on aluminum wire, foil, tubes and pipes manufactured in Russia. But aluminum exports including primary metal, accounting for 85% of the total “remain outside the scope of the measures”, the group said last year.

EU imports of Russian primary aluminum have dropped since 2018, when the United States imposed sanctions on Rusal, but they are still significant. According to Trade Data Monitor, EU imports of Russian aluminum totalled 512,122 tons in 2023 or 8% of the total from 12% in 2022 and 19% in 2018.

Rusal said last week that sales to Europe contributed $3.4 billion to its $12.2-billion revenue in 2023.

Expectations of surpluses driven by low consumption and production increases mean the EU could more easily replace Russian aluminum from other producer countries or by more local production, said European Aluminium’s market intelligence director Djibril René.

(By Pratima Desai; Editing by David Evans)

South Africa optimistic for tax breaks to kick-start EV industry

Bloomberg News | March 18, 2024 

Nissan E-Power electric vehicles on display in Cape Town, South Africa. Stock image.

South Africa expects efforts to boost its electric vehicle manufacturing to yield swift results, as manufactures start to take advantage of tax incentives from early 2026.


“We are ready now for carmakers to begin to gear up,” Trade and Industry Minister Ebrahim Patel told reporters. “A carmaker can commence immediately to put in place the production capabilities and production systems,” he said Monday on the sidelines of a Black Industrialists and Exporters Conference in the capital, Pretoria.

South Africa, in an effort to preserve a key export industry, last month announced a 150% tax deduction on investments in the local production of electric and hydrogen-powered vehicles from March 2026.

The country’s vehicle exports generated more than $21 billion in earnings last year. But car companies were worried about the lack of government support for EVs, amid shrinking demand for conventional petrol and diesel-powered engines in Europe, South Africa’s primary export market.

Patel said the long lead time was designed to give South African carmakers enough time to prepare production facilities and win support from their parent companies.

“As they incur that expense off the back of our incentive, they know they will be reimbursed,” he said.

The tax break is key for South Africa, which despite its natural advantages, has done little to develop an EV industry in the country.

South Africa has abundant supplies of raw materials vital for the manufacture of lithium-ion batteries, including increasing supplies of nickel and the world’s largest reserves of manganese. it also holds the world’s largest platinum reserves, a metal used in fuel-cell engines that run on hydrogen.

(By Mpho Hlakudi)

Li-Cycle raises cost estimate for Rochester Hub project again

Reuters | March 18, 2024 

Battery recycling plant in Rochester, New York. (Image courtesy of Li-Cycle.)

Li-Cycle on Monday raised the cost estimate for the construction of its Rochester Hub again to $960 million, even as the battery recycling company struggles with liquidity issues.


The increase in cost was primarily due to the refinement of the methodology used for estimating the project budget, it said.

In October, Li-Cyle paused the construction of its flagship battery recycling facility in Rochester, New York, and later said it was evaluating financing and strategic alternatives.

It had also raised the cost of the project to between $850 million and $1 billion in November, from $560 million earlier.

Li-Cyle said on Monday it continues to complete its comprehensive review work, including re-engaging and re-bidding construction subcontracts.

Last week, the company secured an additional $75 million investment through a convertible note from Swiss miner and commodities trader Glencore, to help with the Hub’s financing.

(By Kabir Dweit; Editing by Devika Syamnath)

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)