South Korea said to build lithium reserves to aid battery sector

Bloomberg News | May 20, 2024 | 

Credit: LG Energy Solution Ltd.

South Korea has started building its lithium inventories to secure supplies of the critical mineral that’s crucial for its battery and auto manufacturing industries.


The nation has already bought some lithium carbonate, a refined form of the battery material used in EVs, this year from Chile via state-controlled Korea Mine Rehabilitation and Mineral Resources Corp. (KOMIR), said two people familiar with the matter, who weren’t authorized to speak publicly.

The government has now allocated 233.1 billion won ($171 million) to secure critical minerals for development of the nation’s cutting-edge technologies, according to another person with knowledge of the matter. It plans to spend most of it on building its lithium reserves for electric-car batteries in an effort to counter potential shortages amid heightened geopolitical tensions, the person said.

The budget, which marks a 526% jump from the last year’s, is expected to be deployed during 2024, according to the person.

KOMIR declined to comment when reached by phone.

South Korea’s stockpiling strategy comes at a time when lithium prices have struggled to rebound from a sharp plunge last year. Authorities are also striving to ensure domestic companies can maintain competitiveness in the US by meeting the requirements of the Inflation Reduction Act.

President Joe Biden’s signature legislation, enacted in 2022, is intended to reduce reliance on China – which still dominates the processing of crucial battery materials including lithium.

Prices of lithium rallied to a record high in late 2022 as the global push toward an electrified transport fleet fired up consumption, while supplies struggled to keep pace. Car and battery manufacturers were scrambling to secure offtake or expansion deals to lock in lithium.

Since then, EV demand growth has been weaker than expected, with battery makers including LG Energy Solution Ltd. and Samsung SDI Co. reporting smaller profits last year. Meanwhile, a massive wave of new lithium supplies also weighed on prices – which tumbled more than 80% in 2023 and have yet to see any meaningful recovery this year.

South Korea’s trade ministry unveiled a plan in March to invest 241.7 billion won over the next three years to build warehouses for storage of critical minerals, including lithium, gallium and rare earths.

(By Annie Lee and Heejin Kim)

China’s SDIC in advanced talks for significant stake in Thai potash mine

Bloomberg News | May 20, 2024 | 

Stock image.

China’s SDIC Mining Investment Co. is in advanced talks for a significant minority stake in Asia Pacific Potash Corp., according to people familiar with the matter.


SDIC aims to acquire up to 49% of the company, which has exploration and production rights in northeast Thailand, from Italian-Thai Development Pcl, the people said, asking not to be identified discussing confidential information.

A deal could be worth at least $400 million and might be announced as soon as the coming weeks, the people said. No agreement has been finalized and talks could still fall apart, they said.

ITD, as Italian-Thai Development is known, Asia Pacific Potash and SDIC didn’t respond to requests for comment.

ITD shares jumped as much as 11%, the biggest gain in three weeks.

Bloomberg News reported in February that ITD was considering selling its 90% stake in Asia Pacific Potash and talking with potential buyers, including from China. In April, ITD’s executive vice president reaffirmed that talks were ongoing and asset sales would accelerate as the builder tries to repay debts.

While ITD is still one of Thailand’s biggest construction firms, its market value has tumbled to a little over $100 million from more than $1.5 billion less than 10 years ago. Net income for the first quarter was about 122 million baht ($3.4 million), down 60% from a year earlier, the company said last week.

After reporting a fourth-straight annual loss in March, ITD said it expected to get new loans and sell non-core assets to continue operations and address a liquidity crunch. Bondholders also approved two-year extensions of redemption dates in January. ITD’s total liabilities were 107 billion baht as of Dec. 31.

ITD acquired Asia Pacific Potash in 2006, giving it access to high-grade potash deposits in Thailand’s Udon Thani province, where it has annual production capacity of 2 million tons, according to its website.

SDIC Mining is a subsidiary of China’s State Development and Investment Corp., which invests in non-coal mineral resources and related industries.

(By Dong Cao, Elffie Chew and Anuchit Nguyen)

Spot silver tops $30 an ounce to hit highest since 2013

Bloomberg News | May 17, 2024 

Stock image.

Spot silver surpassed $30 an ounce to hit the highest level in more than a decade.


The precious metal closed 6.5% higher at $31.49 an ounce Friday, the highest since February 2013. It has soared 32% this year, outpacing gold and making it one of the year’s best-performing major commodities.

Silver’s rally comes amid surging investor interest, an increasingly supportive macroeconomic backdrop and a projected fourth annual market deficit. The price rally accelerated Friday, helped by spillover sentiment in the broader metals markets.

“This week was kind of the recreation of the meme stock,” Phil Streible, chief market strategist at Blue Line Futures, said Friday in a phone interview. “Those speculators naturally look for different areas to exploit. And silver is usually the one that they favor.”

Silver was a target market of Reddit retail traders in 2021 amid a buying stampede in GameStop Corp. and other small-cap stocks that captivated the financial world.

The precious metal’s break through the $30 level may trigger substantial buying activity by exchange-traded funds — increasing the risk of a silver squeeze, according to TD Securities senior commodity strategist Daniel Ghali.

Investors remain net sellers of physically backed silver ETFs, with holdings down 1.7% as of Thursday, according to data compiled by Bloomberg. In the week ending May 14, money managers boosted their bullish wagers on Comex silver futures to the highest in more than two years. Gross shorts held by these investors accounted for 11% of total open interest as of May 14.

Although silver’s rally has outpaced gold’s, it is still relatively cheap.

The two precious metals move largely in tandem as both offer similar macro- and currency-hedging properties. With gold hitting a record on central bank buying, retail interest in China and a resurgence in bets that lower US interest rates are on the way, silver has gone along for the ride. Although there’s been scant interest from investors in silver-backed exchange-traded funds, physical sales have picked up, including at Singapore-based dealer Silver Bullion Pte.

Silver has a dual character, valued both for its uses as a financial asset and an industrial input, including for clean-energy technologies. The metal is a key ingredient in solar panels, and with robust growth in that industry, usage of the metal is expected to reach a record this year, according to the Silver Institute. Against that backdrop, the market is headed for a fourth year in deficit, with this year’s shortage seen as the second biggest on record.

(By Yvonne Yue Li)

Get real: Copper price record was 56 years ago

Frik Els | May 20, 2024 | 

Copper glow

Another day another copper price high.


In heavy volume on Monday copper for delivery in July hit a record intra-day level of $5.1990 a pound or $11,460 a tonne.

After the equivalent of $68 billion worth of copper lots exchanged hands in 24 hours, the brown metal is up 35% so far in 2024 with most of the gains in the last few weeks.

Jeff Currie, ex Goldman Sachs and more recently Chief Strategy Officer of Energy Pathways at asset manager Carlyle, told Bloomberg in an interview headlined Copper is the New Oil (not it’s not) that copper “is the highest conviction trade I have ever seen”.

Goldman had been calling copper at today’s prices for at least three years, but Currie’s reading of the energy pathways now sees copper going to $15,000 ($6.80 a pound).

MINING.COM has been banging the same copper drum based on the metal’s position at the nexus of the green energy transition but Currie adds two other tailwinds to green capex demand to get copper to $15k: Green energy transition
AI data centers

Military demand.

Add the long lead times to build new mines (just ask Rio Tinto), tight inventories and Currie says the 2021 call is finally paying off:

“You can’t come up with a better story [..] I’m confident that this time it is liftoff.”

Currie also points out that only at $15,000 would copper match its inflation adjusted all-time peak reached in 1968 which came on the back of a housing boom in the US.

Copper peaked at $0.72 in February of 1968 and as it happens, during that tumultuous year McDonald’s first introduced the Big Mac to America.

The Big Mac, everyone’s favourite deflator, was priced at $0.49 in 1968. Today the Big Mac is a cool $5.99.

Says Currie: “If you go back to the 2000s and I was as bullish on oil then as I am copper today. You know oil ended up going up from $20 to $140 seven times. The upside on copper here is very significant.”

Not sure exactly where on the 20-140 spectrum copper is trading today but if this is the argument that copper is the new oil, MINING.COM will take it.

Copper price hits record above $11,000 on bets that shortage looms

Bloomberg News | May 20, 2024 | 

Stock image.

Copper surged to its highest-ever level, extending a months-long rally driven by financial investors who’ve piled into the market in anticipation of deepening supply shortages.


Futures on the London Metal Exchange jumped more than 4%, taking copper past $11,000 a ton for the first time, before paring some gains in afternoon trading.

Banks, miners and investment funds have been touting copper’s bright long-term prospects for months, and a flood of investment into the market over the past few weeks has piled pressure on bearish traders who’ve taken a more cautious stance owing to weak spot demand, particularly in China.

Several developments in 2024 have emboldened copper bulls and drawn in a rising tide of speculative money. Tight supply of copper ore fueled talk of output cuts by smelters, and investors are betting that surging usage in fast-growing sectors including EVs, renewable energy and artificial intelligence will offset the drag from traditional sectors like construction.

Prices started to take off in early April, and last week the rally went into overdrive as a short squeeze on the New York futures market triggered a global rush to secure the metal.

“That has taken prices to another level and it’s very difficult to call a top in this environment,” Craig Lang, principal analyst at researcher CRU Group, said by phone from Singapore. “Commodities markets do tend to overshoot.”

Investors, traders and mining executives have warned for years that the world faced a critical shortfall of copper amid ballooning demand in green industries. Jeff Currie, commodities veteran and the chief strategy officer of the energy pathways team at Carlyle Group Inc., said last week that copper was the best long trade he has ever seen.

However, many participants in the physical trade have warned that copper prices were running ahead of reality. Demand remains relatively tepid — especially in top buyer China, where inventory levels remain high and suppliers of copper wires and bars have been cutting output. Chinese demand is so subdued that smelters have been racing to export copper as prices in New York and London have shot ahead of prevailing prices in the domestic market.

But the disconnect has continued to grow as investors flocked to western exchanges and bearish traders rushed to buy back short positions.

Copper’s rapid ascent to $11,000 has also brought significant volumes of bullish options into the money, in a trend that could add fuel to the rally as dealers who’ve sold the contracts move to cover their exposure by buying futures.

LME copper was up 2.2% to $10,904 a ton by 3:15 p.m. in London, after earlier hitting an all-time peak of $11,104.50 a ton.

Prices have gained more than a quarter since the start of this year, spearheading across-the-board gains for major industrial metals. Like copper, gold has also rallied to a record, with both metals getting support from optimism that the US Federal Reserve will start cutting interest rates this year.
Diverted metal

A series of setbacks at major copper mines are fueling fears that a much-anticipated production shortfall will arrive earlier than expected. Smelter treatment fees — a gauge of tightness in the ore market — plunged below zero in April, raising the prospect that plants will be forced to cut production to stem losses.

And the short squeeze on the Comex exchange in New York drove prices there to an unprecedented premium over the LME. That triggered a rush to reroute copper to the US, meaning less metal available elsewhere.

“The Comex short squeeze is rediverting copper to the US and tightening supplies in other regions,” Gong Ming, an analyst with Jinrui Futures Co., said by phone. “The Chinese market is expected to see inventories withdrawal soon with exports rising.”

Copper’s record run at risk as US shipments calm speculator frenzy

Reuters | May 20, 2024 | 

Stock image.

Copper’s lightning rally to record highs may not be sustainable in the coming weeks, with action concentrated on the shipment of material to cover exposed short positions in the US Comex futures market rather than tepid demand in top consumer China.


Prices on the CME Group’s Comex hit a record last week, while benchmark copper on the London Metal Exchange (LME) rocketed on Monday to an all-time peak of $11,104.50 a metric ton, having surged 28% so far this year.




Analysts say copper’s long-term fundamentals are strong, with a bullish outlook attached to firm demand in coming years for applications including the global clean energy transition and greater use of artificial intelligence (AI).


That is set against constrained supply, prompting a race among miners for high quality projects.

The current run higher appears to be on shaky ground, motivated by heavy speculative activity and a dash to cover large short positions – which can be bets on lower prices, or producers hedging their output – taken by traders.

At least 100,000 metric tons of copper are en route to the US CME exchange, two sources with direct knowledge told Reuters on Monday, which will go a good way to allow parties to deliver against bearish positions and take the heat out of the market.

“At the moment, it’s pure speculative rather than real demand,” said Robert Montefusco at broker Sucden Financial.

“It all depends on whether that demand becomes real, because once the specs are out, it’ll just fall away.”

On Comex, there was a total net short position of 7,525 contracts or 85,334 tons, data showed on Friday.

There was a big difference however between the net long position of speculators at 72,785 contracts (825,382 tons) and the net short position by producers of 91,502 contracts (1.04 million tons).
Shipments from South America

Sources have told Reuters that commodity traders including Trafigura and IXM, as well as Chinese copper producers, are among those caught in a short squeeze on Comex.

Many of those shorts have arranged for copper shipments to the US, from producers in Chile and Peru, re-directed vessels that had been headed to China on long-term contracts, and some copper withdrawn from LME warehouses.

More than 20,000 tons from Chile are expected to arrive in the US by the end of May, with bigger volumes lined up to land in June and July, two producer sources said.

The transfer of copper from LME-registered warehouses to Comex however could be limited. Chinese and Russian copper, accounting for 67% of LME stocks, are not eligible for Comex delivery.

There are 17,250 tonnes of copper produced in Chile, Peru and Australia which are US duty-exempt and were in the LME system at the end of April, exchange data showed.
Chinese consumers, smelters hold back

Consumption in China, which accounts for about half of global copper demand, is lacklustre due to a troubled property sector and industrial consumers that are baulking at record prices.

China on Friday announced “historic” steps to stabilise its crisis-hit property sector, but it will take time for a sector that is usually a big consumer of industrial metals to rebound.

For the time being, signals are gloomy, with the Yangshan copper premium, which reflects demand for copper imported into China, hovering at zero after sinking to negative $5 a ton last week, compared with $60 in March.

“Given significant financial length in copper and persisting slack Chinese fundamentals for the time being, we think there remains the risk that investors lose some patience with the story,” JPMorgan analysts said in a note on Monday.

“In our view, this could ultimately be a very healthy correction that acts to kick start Chinese demand out of its stupor.”

Much potential Chinese demand is on hold and could kick in at lower prices, JPMorgan added.

Investors and analysts are still bullish for the medium and long term due to rising global demand and disruptions to mine supply.

(By Eric Onstad, Julian Luk and Pratima Desai, Editing by Veronica Brown and Jan Harvey)

Energy mogul makes 100-year bet on Argentina’s mineral wealth

Bloomberg News | May 20, 2024 | 

Credit: Integra Lithium

Over three decades, Jose Luis Manzano built a reputation for diving into distressed sectors in Argentina and navigating tumultuous economic and political cycles to shape a portfolio ranging from media to energy.


Now, through holding company Integra Capital, he’s going all in on mining in a gambit that South American minerals will be essential to fueling the world’s future — and especially the transition to clean power. Argentina, traditionally a farming and oil nation, has more recently been luring investors to its vast, underdeveloped lithium and copper resources.

Manzano has been snapping up mines and lithium-rich acreage in northern Argentina as well as tapping neighboring Brazil’s lithium valley. Late last year, Integra also fended off rival bidders, such as billionaire Eduardo Eurnekian, to restart a huge potash-fertilizer project abandoned by Vale SA in Manzano’s native province of Mendoza, better known for Malbec wines.

“We believe we are positioning ourselves in things that will be necessary for the next 50 to 100 years,” Manzano said in a rare interview from London.

His latest move was buying Peruvian miner Volcan Cia Minera SAA from Glencore Plc.


The 68-year-old physician was a minister under former President Carlos Menem in the early 1990s before entering the business world with a TV company.

Manzano now lives in Geneva and cited that as key to doing deals with Swiss commodity powerhouses like Glencore. Besides two mining projects acquired from Glencore, he’s partnered with Mercuria Energy Group Ltd. in Argentina’s burgeoning shale oil patch and in natural gas distributor Metrogas SA.

But Manzano is now largely looking beyond fossil fuels. An example came last week as he diluted his interest in the shale blocks. Any new ventures outside of mining will instead focus on cleaner energy.

For now, Manzano is working to get the mining projects up to full speed. “We are recruiting people every day,” he said. “There’s no shortage of qualified people in Argentina. I’m very enthusiastic because they’ve been waiting for Argentina to become a mining country, and now they see the opportunity.”

Mining isn’t just a way for Manzano to wager on the changing energy landscape. The Mendoza project for potash — a key ingredient in fertilizers used for crops — can also help satisfy the appetite of a growing global population. “Food security will not happen without potash,” he said.

That acquisition with a Brazilian partner demonstrated Manzano’s flair for contrarian investing, given the current worldwide glut of the crop nutrient. He’s often bought when everyone else is heading for the exits. Vale ditched the project a decade ago because of the tough business climate in Argentina under a leftist government.
President Milei

The nation has now leapt to the other end of the political spectrum with President Javier Milei, a libertarian in his first year in power.

Manzano has long been adept at surfing Argentina’s inflationary spikes, sovereign-debt defaults and money-flow restrictions. Under the Milei administration, he and other business leaders see opportunities to grow their personal wealth and solidify their legacies.

Milei is seeking to pare back the role of government, deregulate the economy, and unshackle business from a slew of controls to attract investment and create private-sector jobs. His signature legislation currently snaking its way through congress also includes sweeping tax and currency benefits for investors from big industries like mining.

Manzano, who’s traditionally been close to the Peronist party that Milei defeated in last year’s elections, is pleased with what he’s seen so far.

“I am optimistic,” he said. “We believe the initial action against inflation is succeeding and that maybe the economy can start on a growth path in the fourth quarter — and that is attracting a lot of attention to the play in Argentina.”

One deal that’s already working out well under Milei — who’s been hiking Argentina’s cheap utility and transport prices — is the controlling stake that Manzano bought with partners more than three years ago in Buenos Aires electricity distributor Edenor SA. New York-traded shares of Edenor have jumped more than 400% since the takeover was announced.

“First off, he’s an extremely intelligent person; that’s something his friends and enemies will recognize. Second, he knows how to move in the halls of power,” said Jose Manuel Ortega, a former Banco Santander SA banker who’s invested in Mendoza and interacted with Manzano. “He’s been able to get capital from investors and partners to do these deals, and obviously that’s helping him build his personal fortune.”

Still, Manzano’s pivot to mining doesn’t come without challenges in Argentina, where the industry pales in comparison to neighboring Chile and has struggled to convince communities that economic benefits outweigh environmental risks.

Elsewhere, not all of Manzano’s deals have panned out. A stake in a venture with Venezuela’s state-run oil company Petroleos de Venezuela SA is producing just a fraction of its capacity. And shares of Interoil Exploration and Production ASA, a Norwegian company in which Integra has a small stake, have cratered this year.

Manzano said the Venezuelan project should ramp up output in coming years, and that problems in Colombian drilling areas that are holding back Interoil would get resolved.

When Manzano eventually steps aside, he may tap legal confidant Nicolas Mallo Huergo, 54, who holds key positions in Integra’s mining and energy companies. When asked about a successor, Manzano put Mallo Huergo’s name on the short list.

“He’s very involved in all the M&A, and the running and oversight of the companies,” Manzano said.

(By Jonathan Gilbert and Daniel Cancel)

Metal waste can be turned into catalyst for hydrogen production

Staff Writer | May 21, 2024 |

Waste metal swarf used in experiment to transform it into a highly efficient catalyst to make hydrogen from water, a discovery that could make hydrogen production more sustainable. (Image by the University of Nottingham).

A team of researchers from the University of Nottingham found a way to transform metal waste into a highly efficient catalyst to make hydrogen from water.


In detail, the scientists discovered that the surface of swarf, a byproduct of the metal machining industry, is textured with tiny steps and grooves on a nanoscale level. These textures can anchor atoms of platinum or cobalt, leading to an efficient electrocatalyst that can split water into hydrogen and oxygen.

“Industries in the UK alone generate millions of tons of metal waste annually. By using a scanning electron microscope, we were able to inspect the seemingly smooth surfaces of the stainless steel, titanium, or nickel alloy swarf,” said lead researcher Jesum Alves Fernandes. “To our astonishment, we discovered that the surfaces had grooves and ridges that were only tens of nanometers wide. We realized that this nanotextured surface could present a unique opportunity for the fabrication of electrocatalysts.”

The researchers used magnetron sputtering to create a platinum atom “rain” on the swarf’s surface. These platinum atoms then come together into nanoparticles that fit snugly into the nanoscale grooves.

“It is remarkable that we are able to produce hydrogen from water using only a tenth of the amount of platinum loading compared to state-of-the-art commercial catalysts,” said Madasamy Thangamuthu, a postdoctoral researcher at the University of Nottingham who was responsible for the analysis of the structure and electrocatalytic activity of the new materials. “By spreading just 28 micrograms of the precious metal over 1 cm² of the swarf, we were able to create a laboratory-scale electrolyzer that operates with 100% efficiency and produces 0.5 litres of hydrogen gas per minute just from a single piece of swarf.”

The group believes the electrocatalysts made from swarf have the potential to greatly impact the British economy. Thus, the scientists are partnering with AqSorption Ltd, a Nottingham-based company specializing in electrolyzer design and fabrication to scale up their technology.

“Our unique technology developed at Nottingham, which involves atom-by-atom growth of platinum particles on nanotextured surfaces, has solved two major challenges. Firstly, it enables the production of green hydrogen using the least amount of precious metal possible and, secondly, it upcycles metal waste from the aerospace industry, all in a single process,” Andrei Khlobystov, co-author of the study, said.

Hydrogen is a clean fuel that can be used to generate heat or power vehicles, and the only byproduct of its combustion is water vapour. However, most hydrogen production methods rely on fossil fuel feedstock. Electrolysis of water is one of the most promising green pathways for hydrogen production, as it only requires water and electricity.

The industry, however, is facing a challenge with water electrolysis, as this process requires rare and expensive elements like platinum to catalyze the water splitting. With the limited global supply and increasing prices of precious metals, there is an urgent need for alternative electrocatalyst materials to produce hydrogen from water.

Past producing yellow diamonds mine in Australia set to reopen

Cecilia Jamasmie | May 21, 2024 | 

The Ellendale mine produced over 50% of the world’s fancy yellow diamonds (Stock image by lesslemon.)

Australia’s Gibb River Diamonds (ASX: GIB) is getting closer to restarting the mothballed Ellendale diamond mine in West Kimberley after being granted three mining leases that are key for the project.


The permits mark a significant step in reviving production at Ellendale, which was a major diamond producing mine. The operation was particularly know for being a source of fancy yellow diamonds, being responsible for more than 50% of the annual world’s supply until it was shut down in 2015.

The leases cover the main portions of the historic workings at the E4 and E9 pipes, as well as the extensively bulk-sampled E12 alluvials and their access, Gibb River said.

As part as the reopening steps, Gibb River said it is scheduled to conduct a heritage clearance survey in the first week of June. The company is also studying financing options for the project, including debt, equity, earn-in partner, joint venture partner, a North Australian Infrastructure Fund (NAIF) partnership, or other government funding schemes available.

The exploration and development company became Ellendale’s sole owner in March last year, after acquiring the project from Burgundy Diamonds.

Shares in the company soared on the news, closing 48% higher at 37 Australian cents each. This leaves Gibb River Diamonds with a market capitalization of A$6.52 million ($4.4m).

 

A Retired Staten Island Ferry is Up For Auction For $155,000

The Andrew J. Barberi under way (Daniel Schwen / CC BY SA 4.0)

PUBLISHED MAY 20, 2024 9:27 PM BY THE MARITIME EXECUTIVE

 

One of the most iconic vessels in the world is up for auction this month, and the price is surprisingly affordable. The Staten Island Ferry Andrew J. Barberi, which was decommissioned last year, is on sale at a starting price of just $155,000. There is a catch: her engine room controls and bridge instruments have been stripped out, and she is being sold on an "as-is, where-is basis." The successful bidder will need to arrange a tow within 20 days of the auction's close. 

The Barberi is a 6,000-passenger, 300-foot-long ferry that made the hourly run from the Battery to Staten Island for decades. She delivered in 1981, and brought the maneuverability of a Voith-Schneider propulsion system to replace steam-powered predecessors. 

Barberi will also be remembered for two terrible accidents that occurred on board. In 2003, Barberi hit a pier due to pilot error, killing 11 people. In 2010, the Barberi sustained a failure in a propulsion control system and lost ability to maneuver, and she hit a terminal and injured 37 passengers,

Her retirement has been in the planning since 2012, when the Staten Island Ferry began the process of designing and building its new Ollis-class vessels. 

"NYC DOT has been upgrading our ferry fleet through generational investments to improve service and bring new amenities for riders - allowing older vessels to be retired?," an agency spokesman told local media in a statement last month. "We will have more information soon on NYC DOT’s plans to commemorate the Andrew J. Barberi."

Prospective bidders can see the vessel's exerior at her layberth in St. George, Staten Island, and interior photos are available at the auction site. As of May 20, no bids have been received. 

The last Staten Island Ferry auctioned off was the 1965-built John F. Kennedy, and it brought in a final sale price of $280,000. It was purchased by the well-known comedians Pete Davidson and Colin Jost, who had plans to turn it into an entertainment venue - a time-honored second act for former ferries. The planning for their refurbishment project is still under way. 

 

Inmarsat Rolls Out an Integrated Multi-Network Satcom Service

Inmarsat's new service will integrate the new ViaSat-3 satellite service when ready in 2025 (Viasat)

PUBLISHED MAY 20, 2024 4:36 PM BY THE MARITIME EXECUTIVE

 

Leveraging its recent combination with American satcom giant Viasat, longtime maritime connectivity leader Inmarsat is launching a managed plan that integrates GEO, LEO and LTE in one product - with one unified cybersecurity service. 

Low-earth orbit (LEO) satcom services have shaken up the sector over the past two years, particularly SpaceX's Starlink, which offers high bandwidth and low latency at a lower cost point than many competitors. But for commercial maritime, reliability and universal coverage are at a premium. Inmarsat believes that by providing a unified commercial-grade package with multiple satellite constellations - including Viasat's next-gen ViaSat-3, coming to market next year - it can offer maritime operators a service with higher uptime and an "unparalleled experience." 

"At a time when reliable communications are a competitive advantage, maritime operators are seeking a value proposition tailored to their needs and rooted in high performance, certainty, and targeted outcomes," said Inmarsat Maritime President Ben Palmer OBE. "This is where NexusWave fulfils all of those demands, and more. Truly a game-changer in maritime communications, the new solution gives our customers the confidence to operate on their own terms, anywhere in the world, with complete peace of mind."

NexusWave integrates multiple networks, including Inmarsat's GlobalXpress Ka-band geosynchronous broadband service, an as-available coastal LTE service, an L-band backup service, and low-earth orbit (LEO) services. It adds high-end firewall security as part of the unified package. 

The new service takes advantage of the strengths of Viasat, which acquired Inmarsat for $7.3 billion last year. Viasat provides residential internet services in North America, as well as coverage for aviation and defense communications. At the time of the acquisition, Viasat said that the combination of the two companies would allow it to deliver more bandwidth and lower latency for maritime customers. It also integrated Inmarsat's radio frequency spectrum licenses and its satellite fleet into the Viasat network, creating further synergies. 

"Our combination with Viasat last year brought together the extraordinary people, innovation capabilities, and network assets of both businesses, creating a synergy that has been integral to the development of NexusWave," said Palmer.

 

U.S. Navy Stands Up New Unit to Run Small Drone Boats by the Hundreds

GARC drone boats in operation (USN)

PUBLISHED MAY 21, 2024 2:48 AM BY THE MARITIME EXECUTIVE

 

The U.S. Navy has set up another unmanned vessel squadron in California, and it will operate a large fleet of speedboat-sized drone boats designed for reconnaissance payloads. 

The newly-formed Unmanned Surface Vessel Squadron 3 (USVRON 3) will operate the Global Autonomous Reconnaissance Craft, or GARC. This drone system is built by Maritime Applied Physics Corporation, and it shares a general hull form with the former Greenough Advanced Rescue Craft (also known as GARC), an experimental craft that was originally developed as a payload for the Littoral Combat Ship program.

According to Pacific Fleet, GARCs are 16-foot USVs that will be used for research, testing, and operations, and are designed to spearhead unmanned-systems integration into the rest of the surface fleet. The Navy is still early in its journey of rolling out unmanned vessels in front-line operational roles, and the squadron will pioneer new applications. 

“With challenging obstacles to overcome, we have put the right team in place at USVRON Three, and I believe we have done just that,” McLane said. “The Navy is placing unmanned systems in the hands of 400 of our most talented warfighters to help integrate, scale, experiment, and employ these systems.”

The new squadron will also be among the first units to benefit from the new robotics warfare (RW) rating, a recently created specialty that recognizes the unique skillsets of unmanned-system operators and maintainers. It will be housed under Surface Development Group One, the test-and-evalution unit that houses all three Zumwalt-class destroyers and the Navy's midsize USVs, the DARPA-developed Sea Hunter and Sea Hawk and the Pentagon-developed Ghost Fleet Overlord crewboat conversions. 

“There are currently no boundaries, and we have an incredible opportunity to determine what right looks like within our sphere of influence,” said group commander Cdre. Shea Thompson, emphasizing that the squadron will be writing the rulebooks for unmanned-operation as it goes along. 

The Pentagon is pushing to field low-cost, high-volume unmanned assets at scale under its "Replicator" initiative. Ukraine's experiments with drone boats have shown defense operators the value of small and simple unmanned vessels, so long as they have sufficient range and payload capacity. GARC will be able to travel up to 700 nautical miles at six knots, and 400 nautical miles at 30 knots. For comparison, this is enough range to reach Taiwanese waters from the U.S. base in Okinawa. 

USVRON 3 is starting up with 24 members, but could scale up to 400 as more equipment delivers to the fleet, according to USNI. The small craft cost less than $1 million apiece and will eventually number in the hundreds. Potential first customers could include Marine Corps units and special warfare operators.