Rising demand for responsible rare earths is not lifting prices, says Lynas

Reuters | June 20, 2024 

Lynas’ C & L plant in Malaysia. Credit: Lynas Rare Earths Ltd.

Lynas Rare Earths, the world’s largest producer outside of China, said on Thursday that demand for responsibly produced rare earths was increasing but had not resulted in higher prices.


Rare earths are a group of 17 metals, some of which are used in permanent magnets for applications including motors for wind turbines, electric vehicles and drones. Western nations are building a supply chain separate to dominant producer China, but some have been struggling to find funding due to low prices.




Key quotes

“Governments are starting to take action on supply chain resilience and customer demand for responsibly produced rare earths is increasing but it’s not translating to price,” Lynas CEO Amanda Lacaze said at a rare earths conference in Tokyo.

“Demand growth has not been matched by price growth,” she said. “The idea that we will suddenly have a functioning market is I think unlikely.”
Why it’s important

Some miners of metals needed for the energy transition are calling for a green premium to be applied to responsibly produced metals, however others increasingly say that consumers are interested in the product, but not with a premium attached.

China also supplies most of the world’s rare earth magnets and supply from the country has grown, weighing on prices.
Context

Nickel miner Wyloo Metals, owned by Australian mining magnate Andrew Forrest, said in March that if the London Metal Exchange (LME) wouldn’t launch a green nickel contract, the industry would have to look for another trading venue.

The London Metal Exchange (LME) does not plan to launch a separate “green” nickel contract because the market is not large enough, but said its partner was developing an index price that will reflect demand for low carbon nickel.

Lithium miners have been publishing prices they have agreed for supply amid a push to increase price transparency.

Indonesia’s Nickel Industries says that consumers don’t want to pay a green premium, but rather want its nickel at a discount.

(By Melanie Burton and Yuka Obayashi; Editing by Stephen Coates)

CHILE

Codelco working to securing deliveries after cargo train crash

Reuters | June 21, 2024 | 

Train loaded with copper ore and a bunch of empty sulfuric acid tankers along a narrow path through the Andes, up to the smelter at Potrerillos. (Image from David Gubler on Flickr)

Chile’s Codelco was working to secure deliveries to clients after a cargo train carrying a copper load was involved in a crash with a passenger train on the outskirts of Santiago, the state-run copper miner said in a statement to Reuters on Friday.


A passenger train on a test run by Chile’s state rail operator collided with a private cargo train carrying about 1,346 metric tons of copper shortly after midnight on Thursday, killing two of the cargo train’s operators

Initial findings indicated that the passenger train was conducting speed maneuvers when it collided with the cargo train, according to local prosecutors. The passenger train was not informed of another train approaching, they said.

(By Natalia Ramos; Editing by Sarah Morland and Leslie Adler)

Allegations of human rights abuses ‘unfounded’, Barrick tells UNHRC

Reuters | June 20, 2024 | 

Bulyanhulu, Buzwagi (pictured) and North Mara. (Image courtesy of Acacia Mining.)

Barrick Gold said in a letter to the United Nations Human Rights Council on Thursday that allegations of human rights violations at its North Mara gold mine were “misdirected, unfounded” and “lacked substance”.


The UNHRC’s special procedures branch had sent a letter to the Canadian gold miner in April, saying it had received information about allegations of killings, assault, torture, sexual abuse and violence against women and girls, among others, committed by security forces and private security contractors at the North Mara mine in northern Tanzania.

UNHRC’s letter to Barrick stated that “12 deaths which allegedly occurred during/resulting from operations by security forces assigned to the mine. Of these, six have been allegedly the result of Barrick operations.”

North Mara Gold Mine Limited (NMGML) is the owner and operator of the North Mara gold mine and Barrick Gold does not have direct operations in Tanzania, the company said.

Barrick owns a majority stake in NMGML since 2019.

Barrick said the UNHRC working groups and special rapporteurs did not conduct site visits, nor engage with the Tanzanian authorities.

“The private security provider, SGA, is unarmed. There are no lethal weapons or ammunitions held by NMGML, its employees or contractors,” the company said in its letter.

In 2022, Barrick had faced several lawsuits alleging violence by security forces at North Mara.

UNHRC did not immediately respond to a Reuters request for a comment.

(By Tanay Dhumal)

RIP

OceanaGold halts operations at Didipio mine after worker death

Staff Writer | June 21, 2024 | 

Didipio mine is located 270 km north of Manila. (Image courtesy of OceanaGold Corp.)

OceanaGold (TSX: OGC) is halting operations at its Didipio gold mine in the Philippines for 24 hours after an employee died at the site.


According to the company, the worker was found unresponsive near the paste plant and could not be revived at the on-site medical clinic.

In a press release Friday, OceanaGold said an investigation into the incident is underway.

Didipio, which began production in 2013 and is located 270 km north of Manila, has a measured and indicated resource of 1.3 million ounces of gold and 160,000 tonnes of copper.

The mine produced 26,300 ounces of gold, about 28% of the company’s total gold production, in the first quarter of 2024.

Earlier this year, the Vancouver-based miner sold 20% of its unit in Philippines through an initial public offering.

Tata Steel workers call first strike in 40 years

Oliver Slow - BBC News
Fri, June 21, 2024 

Workers are protesting against Tata Steel's plans to cut 2,800 jobs [PA Media]


About 1,500 Tata Steel workers will begin an indefinite strike next month over the company’s plans to cut thousands of jobs, the trade union Unite has said.

The move is the first time in more than 40 years that steel workers in the UK have taken strike action, the union added.

About 2,800 Tata Steel workers will lose their jobs when the company closes both blast furnaces in Port Talbot by the end of September.


The company said if the strike affected the safety or stability of its operations it would be "forced" to accelerate closure plans.

The strike will begin on 8 July at Port Talbot and Tata's Llanwern site in Newport.

Tata rejects plea to keep Port Talbot blast furnace


Half of Port Talbot Tata jobs at risk, unions told


Tata Steel open to more investment in Port Talbot

Sharon Graham, Unite general secretary, said Tata’s workers were "not just fighting for their jobs – they are fighting for the future of their communities and the future of steel in Wales".

She said the strikes would continue until the firm "halts its disastrous plans".

Two other trade unions, Community and GMB, have decided “not to schedule any industrial action before the general election has taken place”, said Alun Davies, national officer for steel at Community.

“If and when we do take industrial action, that decision will be made by Community members, who represent the vast majority of workers impacted by Tata's damaging plans,” he said.

Unite members at Tata previously observed an overtime ban and "work to rule" – meaning refusing to do work that is optional in their contracts.

Tata has urged Unite to suspend the action and return to discussions along with other unions.

It previously warned it could withdraw the enhanced redundancy packages on offer if workers went on strike.

Chief executive Rajesh Nair said the "most favourable financial package" it had ever offered would not be paid if staff took part in industrial action.

The company plans to build a £1.25bn electric arc furnace to produce steel in a way which is less polluting than traditional blast furnaces, but requires fewer workers.

Tata said the move would secure the future of steel making at the site and the UK government is contributing £500m towards the cost of the project.

The company said it was "disappointed" by the strike action.

It said it was losing £1m a day that it's steelmaking apparatus were "operationally unstable" and that was why its planned had not changed.

“If the safety and stability of our operations are put at risk by this action, we will be forced to accelerate those closure plans," a spokesman said.

“After extensive negotiations with our unions we substantially improved our support offering for affected employees - the most generous package in our history."
A gamble by Unite

Strike action is as serious as it gets for workers and the company.

Unite has behaved differently to the other two unions in Port Talbot, who remain in discussion with Tata Steel.

Going alone is a gamble by Unite.

Tata has already said that its most favourable redundancy offer to workers is off the table due to the union's industrial action, and it could yet be taken to court. Tata Steel maintains that "irregularities" in Unite's ballot mean any industrial action is unlawful, though it hasn't asked a judge to rule on the issue.

While workers held a rally this week to mark the beginning of a work-to-rule and an overtime ban, Unite's 1,500 membership may find it harder to walk out on strike at Port Talbot and Llanwern.

They would do so while most of their colleagues in other unions were still speaking to the company about their redundancies, and Unite's stance has caused significant tension among the multi-union team who are negotiating with Tata.

This is also a political gamble for Unite, with the spectre of steel strikes beginning days after the general election and posing an immediate headache to whoever enters 10 Downing Street.

Two Historic Naval Fortresses Auctioned Off for $1.3M Each

No Man's Fort (Clarenco)

PUBLISHED JUN 20, 2024 9:07 PM BY THE MARITIME EXECUTIVE

 

Two of the world's most remarkable maritime properties have sold at auction in the UK for about $1.3 million apiece - roughly a fifth of the price that it reportedly cost the previous owner to buy and refurbish them. Spitbank Fort and No Man's Fort, which once guarded the entrance to the Royal Navy's largest base, now belong to a new (undisclosed) buyer after several years of vacancy.

The forts date back to the 1870s, when Britain feared a French attack on the strategic dockyards at Portsmouth. Four  "Palmerston Forts" were constructed to ward off this threat: constructed out of solid granite blocks and reinforced with steel plate, they were fitted out with 12-inch guns to fight off the warships of the era. No Man's Land fort was one of two larger installations, and it cost about $500,000 to build (not counting inflation). Spitbank was smaller, about a third of the size of its bigger brothers.

Over the years, the forts were upgraded and retrofitted as the Royal Navy's needs required. They were in service and manned throughout World War I and World War II, and were never attacked. With the advent of antiship missiles in the early years of the Cold War, the UK decided that its coastal artillery batteries were no longer needed, and it closed all of the forts down. 

The sites were eventually auctioned off to private buyers. In 2012, three of them were acquired by Clarenco, a developer of novel and unusual hotel properties. At considerable cost, No Man's Fort and Spitbank For were refitted as luxury retreats for conferences, weddings and hotel stays. However, these miniature resorts were forced to close during the pandemic, shuttered by social distancing restrictions. 

In 2020, Clarenco put up No Man's Fort and Spitbank for sale. They remained unsold and on the market until earlier this year, when the owner decided to put them up for auction. The guide price was set for about $1.3 million, and the final bids came in at approximately the same amount. 

Spitbank Fort, with Portsmouth in the background (Clarenco)

Spitbank Fort (Amanda Retreats / CC BY SA 3.0)

The new owner now holds two designated historical sites in the middle of the Solent, about two miles offshore. Their future is as-yet unknown, but they are permitted for either commercial hotel or private residential operation. These are large and unusual properties: No Man's Land has four levels and nearly 100,000 square feet of interior space, and has been fitted out with bars, restaurants, dining rooms, a sauna, a library, a laser-tag arena, a lighthouse, luxurious common spaces, and 23 en suite bedrooms, all fortified to resist cannonfire. It has its own generators, sewage treatment plant and an artesian freshwater well.

Spitbank is smaller, but has charm of its own. It has three floors totaling 33,00 square feet, and a red brick interior with vaulted ceilings. Amenities include nine guest suites, a restaurant, sauna, hot pool, fire pit, crow's nest and a wine cave. It too has generators and a freshwater well. 

MILITARY INDUSTRIAL COMPLEX

Fincantieri Reports Passing of Chairman and Italy's Former Head of Defense

Claudio Graziano served for the past two years as Chairman of Fincantieri (Italian Defense Ministry)

PUBLISHED JUN 17, 2024 2:17 PM BY THE MARITIME EXECUTIVE

 

 

Italian shipbuilding group Fincantieri is confirming the death of its chairman and the former leader of Italy’s defense, retired General Claudio Graziano. News of the passing of the general and one of the highest-ranking members of Italy’s military was met with broad expressions of condolence from Italian leaders in government and industry as well as from the European Union and others in the shipbuilding industry.

Graziano served more than 40 years in the Italian military starting in 1974 after completing his military and academic education. Starting with the Alpini (Mountain Troops) as a commissioned infantry officer, he rose through the ranks becoming Military Assistant to the Army Chief of General Staff. He would lead UN peacekeeping missions, serve as Military Attache at the Embassy in Washington D.C., and rise to Chief of Cabinet of the Ministry of Defense. He was later appointed Chief of Staff to the Italian Army and retired as Chief of the Italian Defense General Staff.

Prime Minister Giorgia Meloni released a statement saying, “I am shocked by the news of the tragic passing of General Claudio Graziano. He leaves us an upright servant of the state, who throughout his life honored the nation, the armed forces, and the institutions with dedication, competence, and professionalism.”

After his distinguished military career, Graziano became Chairman of Fincantieri in May 2022 taking on the role at a critical time in the transition of the shipbuilding. Giuseppe Bono who had led Fincantieri for 20 years retired in 2022 with Graziano assuming the chairman’s role while Pierroberto Folgiero became the new CEO of the company.

Folgiero said of his colleague that he was not only a great leader who dedicated his life to Italy, but also a great manager. He spoke of his vision helping to guide the company.

Fincantieri just announced an agreement to acquire the submarine division of Leonardo as it works to expand its role in military systems and specifically subsea operations. The Italian shipbuilding is also reported to be actively pursuing a combination or investment in Germany’s Thyssenkrupp Marine (TKMS) a leading building of naval vessels. 

Graziano, age 70, was reportedly mourning the passing of his wife a year ago from cancer. Unconfirmed reports in the media said he was found in his home in Rome with the police investigating the possibility of suicide.

The company released a statement saying, “We will miss many things about him but above all his kindness, attention and deep respect towards each person who, with their work, on a daily basis, made and continues to make our community an example of global excellence. He was proud to be among us and we are proud to have had him as Chairman.”

They are saying his passing created “a great irreplaceable void,” both for the company and Italy. He pursued a vision they said to increasingly unite and create a Europe speaking with one voice. The same sentiments were expressed by leaders in the European Union and NATO.

 

Hanwha Agrees to Pay $100M to Acquire Philly Shipyard

Hanwha has agreed to acquire the operations of Philly Shipyard (Philly Shipyard)

PUBLISHED JUN 20, 2024 1:40 PM BY THE MARITIME EXECUTIVE

 

South Korea’s Hanwha Group announced a deal to acquire Philly Shipyards, an operation focused on building Jones Act vessels, from the yard’s Norwegian owners Aker Capital. The negotiations had first been reported in October 2023 as the South Korean company looks to expand its foothold in the U.S. market and naval and government shipbuilding.

Philly Shipyard traces its originals to the late 1990s when the U.S. Navy's Philadelphia Shipyard was closing and the government drydocks were leased to Norway’s Kvaerner Shipbuilding. Plans were announced for the yard in 1997 and they began building the first containerships in 2000. Since then, most of the yard’s work has been in the commercial sector building containerships and tankers for companies including Matson, Crowley, OSG, SeaRiver, and Kinder Morgan as well as a few U.S. government repair jobs. Since 2000, they noted that Philly Shipyard has delivered approximately half of all the new large ocean-going Jones Act commercial ships.

Recently, the yard won the contract to build five new training ships for MARAD, of which the first was delivered in 2023 and the second is approaching delivery while work progresses on the other three vessels. Philly also has construction underway on a rock installation vessel for Great Lakes Dredge and Dock Company and has a contract to build three LNG-fueled containerships for Matson. The total orderbook is valued at approximately $1.6 billion.

Under the terms of the agreement, Hanwha Systems and Hanwha Ocean will split the purchase paying a total of $100 million in cash for the shares of the company. Aker Capital (an investment company and the successor to Kvaerner) is the largest shareholder owning approximately 60 percent of the stock. They expect the transaction to close in the fourth quarter of 2024 subject to regulatory approvals including the Committee of Foreign Investments in the U.S. (CFIUS). 

"The opportunity to collaborate with Philly Shipyard, a significant shipbuilder with a storied history, is an exciting strategic opportunity that will allow Hanwha Systems to deploy its state-of-the-art naval systems and associated technologies in the U.S. market," said CEO of Hanwha Systems, Charlie SC EOH.

Aker highlights it realized $150 million in dividends from Philly in the past decade in addition to the $100 million purchase price to be paid by Hanwha. The purchase price however could be adjusted if the shipyard has more than $100 million in cost overruns on its current projects. The shipyard had previously reported that it expected to record a loss on the training ships for MARAD.

The shipyard has a history of working with the Koreans including designs and components from the former Daewoo Shipbuilding and Marine Engineering (DSME) which was acquired by Hanwha to become Hanwha Ocean. Hanwha and Aker have also been involved in previous business transactions including the 2022 acquisition of Arker’s stake in Rec Silicon, a silicon manufacturer for commercial applications, by Hanwha.

Philly Shipyard had also drawn the attention of Hanwha’s rival HD Hyundai. In April, HD Heavy Industries signed an MoU with Philly Shipyard to form a new partnership targeting U.S. government work and cooperation. Between 2005 and 2017, Hyundai supported the design and procurement for 22 commercial product tankers built by Philly. There was no mention of this agreement in today’s acquisition announcement.

Hanwha and Philly said their boards would work on defining the company’s future strategy and structure following the completion of the transaction. 

This deal comes after Hanwha also proposed an acquisition of Australia-based Austal, a major naval builder in the U.S. That transaction is caught up with regulatory concerns, but Hanwha has said it is still interested in exploring the combination. The company’s proposal for a due diligence to formalize its offer was rejected by Austal which said it was not certain a deal could be completed due to national security considerations in Australia.

IMPERIALISM AND WORLD ECONOMY

N.I. BUKAHRIN

INTRODUCTION

713073012.pdf (myblog.it)

 

Offshore E&P Survey Unveils World's Oldest Deep-Sea Shipwreck

Canaanite amphorae recovered from the wreck site (IAA)

PUBLISHED JUN 20, 2024 4:30 PM BY THE MARITIME EXECUTIVE

 

British oil and gas company Energean has discovered what may be the oldest shipwreck ever found in the deep sea. Last year, as the company surveyed the seabed about 50 nautical miles off Israel, it detected an ancient wreck at a depth of about 2,000 meters - and it turned out to be a remarkable find. 

According to the Israel Antiquities Authority, the wreck is a Canaanite merchant vessel dating back some 3,300 years, an era when the pharoahs ruled the Eastern Mediterranean. It was carrying a cargo of hundreds of ceramic jars (amphorae) on a long voyage when it sank from unknown causes. The boat landed upright and nearly intact on the seafloor, and the cold water preserved the wreck for three millenia, hidden from view - until Energean sent an ROV down to investigate. 

IAA lacks deep ocean research equipment of its own, so it asked Energean to send its deep-diving work class ROV down to survey the site and retrieve artifacts for study. The company quickly said yes.

"They asked if we would be willing to do it for them, and it took us no time to agree," an Energean spokesperson told Haaretz. "We knew that if we didn't do it, nobody would."

Courtesy Energean

The ROV survey determined that the ship was about the size of a modern sailing yacht, roughly 45 feet long, and that the surviving structure of the vessel was buried in sand. Using a net and careful maneuvering, they retrieved two jars from the vessel for further study. 

"[The] ship is preserved at such a great depth that time has frozen since the moment of disaster. Its body and contents have not been disturbed by the human hand, nor affected by waves and currents, which do impact shipwrecks in shallower waters," said IAA's Jacob Sharvit, speaking to the Times of Israel. 

Sharvit emphasized that the wreck location was unusual and unexpected. The vessel went down far from shore, well out of sight of any landmarks. Maritime historians have long assumed that the ancient trade routes in the Mediterranean hugged the coastline, where the vessel's position could be estimated by sight alone. The presence of this vessel in deep offshore waters could signify that the mariners of the era were more capable of celestial navigation than previously believed - or that the vessel was simply off course or adrift. 

"From this geographical point, only the horizon is visible all around. To navigate they probably used the celestial bodies, by taking sightings and angles of the sun and star positions," Sharvit told BBC. 

It is only the third wreck ever found from the Late Bronze Age, and the other two were located close to shore, accessible to divers. Only Energean's participation made the discovery and the survey possible, according to the IAA. 

 

India Approves Plan for First Two Offshore Wind Farms

Mumbai skyline by Shaunak Modi - CC BY 4.0

PUBLISHED JUN 20, 2024 6:19 PM BY THE MARITIME EXECUTIVE

 

The Indian cabinet on Wednesday approved the approach and framework for the country’s first offshore wind farms. Announcing what is being called the Viability Gap Funding (VGF) scheme, Prime Minister Narendra Modi called it a major step toward implementing the vision for offshore and renewable energy.

Modi has ambitious plans to industrialize India and expand its role in global trade. Economic growth was the cornerstone of his recent reelection campaign. By 2030 he predicts India will nearly double its economy to more than $6.6 trillion. His goal is to be a developed economy by 2047 but to achieve that requires massive infrastructure investments such as an expanded power supply.

The cabinet agreed to invest a total of approximately $891 million to start the development of the offshore wind energy sector. It is a key step to implement the National Offshore Wind Energy Policy first put forth in 2015. The VGF that was approved calls for support from the government to reduce the cost of power from offshore wind projects. This will make the electricity generated viable for purchase by the country’s Distribution Companies (DISCOMs).

“This scheme will not only kick start the offshore wind energy development in India but also lead to the creation of a required ecosystem in the country to supplement its ocean-based economic activities,” the government said announcing the agreement to proceed with offshore wind energy.

The plan calls for two wind farms each with a capacity of approximately 500 MW to be developed. One will be located in the Gujarat state on India’s west coast in the Arabian Sea. It will provide power in the region in the north of Mumbai, the country’s largest city as well as its financial hub as well as the locus for the tech and movie industries. The second wind farm will be in the Bay of Bengal near the southeastern tip of the peninsular. It will be in the Tamil Nadu state which spans from the city of Chennai in the north to the channel separating India and Sri Lanka. Development of these wind farms they said would reduce CO2 emissions by 2.98 million tons over a period of 25 years.

The government will provide approximately $819 million for the development of these two wind farms. Details were not announced on how they plan to structure a subsidy program for the offshore wind sector. Also, no target date was released for the wind farms to be built and operational.

The Ministry of New and Renewable Energy will be charged with overseeing the development of the offshore wind sector and coordinating the efforts of the different ministries. They plan to run a bidding process to select private developers responsible for building the offshore wind farms. The Power Grid Corporation of India, however, will be responsible for the offshore substations and the interconnects to the country’s power grid.

The cabinet also recognized the need to upgrade ports to handle the staging and assembly required for offshore wind farms. They allocated approximately $71 million for the upgrade of ports in the first two states selected for wind farms. The Ministry of Ports, Shipping and Waterways will be responsible for managing the port projects.

The master plan for India’s offshore wind industry sets a target of 37 GW of offshore wind energy capacity. A total investment of more than $53 billion in targets for the development of the offshore wind energy sector.

Top photo Mumbai skyline by Shaunak Modi - CC BY 4.0