Wednesday, June 26, 2024

LithiumBank Announces Largest Known Lithium-Brine Resources in North America and Highest Resource Grade in Alberta

NEWSFILE - NEWSFILE - MON JUN 24, 2024



Calgary, Alberta--(Newsfile Corp. - June 24, 2024)

 - LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF) ("LithiumBank'' or the "Company") is pleased to announce the initial National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") lithium-brine mineral resource estimates of 10,078,000 tonnes of inferred Lithium Carbonate Equivalent ("LCE") at a grade of 79.4 mg/L lithium within the Leduc Formation ("Fm") aquifer, and 11,603,000 tonnes inferred LCE at 80.9 mg/L lithium within the Swan Hills Fm aquifer underlying its 100% owned Park Place lithium brine project ("Park Place") located in west-central Alberta. The initial mineral resource estimate assessments were prepared by global technology company SLB (NYSE: SLB) using 3D static modelling mining workflows. These assessments were then used to determine the resource estimates and reviewed and validated by a Qualified Person as defined by National Instrument 43-101 of Canada. The total inferred mineral resource for the Park Place project is 21,681,000 tonnes LCE between the two formations contained within the license boundaries with a combined average grade of 80.2 mg/L lithium. The Company anticipates filing a NI 43-101-compliant technical report in respect of Park Place on SEDAR+ within 45 days of this announcement.

"LithiumBank spent the past five-years consolidating Park Place brine hosted mineral licenses. This work has now culminated in 100% ownership of the largest LCE inferred mineral resource in North America and with the highest recorded lithium grade in Alberta. This is a remarkable achievement for the Company. The Park Place resource puts LithiumBank's collective lithium brine resources inventory for the Company's Alberta projects at 27.78 million tonnes LCE. This presents district scale potential opportunity for Canada to become a major supplier of lithium in North America," commented LithiumBank CEO, Rob Shewchuk. "The Company will now focus on additional brine sample assaying, completing lithium extraction test work, and initiate a Preliminary Economic Assessment ("PEA") for Park Place. We believe this can be expeditiously achieved as we can make use of our knowledge gained from our Boardwalk PEA, effectively dated February 22, 2024, located approximately 50 km to the north, in which the Leduc Formation brine is similar in chemistry, depth of resource, porosity and permeability. Park Place brine will be chemically and metallurgically evaluated at the Company's, exclusively licensed, 10,000 L/day Direct Lithium Extraction ("DLE") pilot plant in Calgary following a bulk brine sampling program in H2 2024."

Highlights:Park Place is the largest known NI 43-101 inferred lithium brine resource estimate in North America.
Highest known reported lithium-in-brine grades used in a NI 43-101 inferred lithium resource estimate in Alberta.
10,078,000 tonnes inferred LCE within the Leduc Fm aquifer at an average of 79.4 mg/L lithium.
11,603,000 tonnes inferred LCE within the Swan Hills Fm aquifer, which underlies the Leduc Formation, at an average of 80.9 mg/L lithium.
Multiple high porosity areas occur that have a combined Leduc & Swan Hills Fm thickness of over 350 metres, and as high as 510 m, to be studied for potential selection of future PEA.
Subsurface reservoir modelling conducted by SLB included data from 420 wells, 104 km2 of 3D seismic data and 262 km of two-dimensional ("2D") seismic data.
Technical work pertaining to mineral resources to be documented in the technical report was performed by SLB, and overseen by Qualified Persons from Matrix Solutions Inc.
The subsurface reservoir model constructed by SLB will assist in planning well networks and locations in future economic and engineering studies such as a PEA; and
Park Place bulk brine sample collection to occur in H2 2024 to be included in the 10,000 L/day continuous direct lithium extraction ("cDLE") pilot plant test work located in the Company's DLE facility in Calgary, Alberta.


Figure 1: Map of the Park Place project showing Area of Interest ("AOI") and lithium brine samples used in the Park Place NI 43-101 resource estimate along with surface infrastructure.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10140/214147_ce6f8256f4b9fbb1_001full.jpg

The consolidated Park Place project consists of 1,404,558 acres of contiguous Brine Hosted Mineral Licenses ("BHML"). The project is situated between Edson, Fox Creek, and Hinton, approximately 180 km west of Edmonton, and is approximately 50 km to the south of the Company's Boardwalk lithium brine project ("Boardwalk"). This area has seen over 70 years of hydrocarbon extraction resulting in a well-established and well-trained labour force, networks of all-weather gravel roads, drill sites that can be easily accessed from Provincial highways, and electrical transmission lines that run through and adjacent to the project (see Figure 1).

Reservoir Evaluation

The reservoir evaluation was completed by SLB and overseen be Alex Haluszka, M.Sc., P.Geo. of Matrix Solutions Inc., a qualified person ("QP") under NI 43-101.

The Park Place NI 43-101 mineral resource estimate includes inferred mineral resources from both the Leduc and Swan Hills Formations of 21,681,000 tonnes LCE at a weighted average grade of 80.2 mg/L lithium (Table 1). Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The mineral resource estimate work was prepared within a portion of the Park Place Property (81%) that is defined as the area of interest ("AOI") and totals 1,140,115 acres (Figure 1). The Swan Hills Fm directly underlies the Leduc Fm and appear to be in hydraulic communication based on regionally available pressure data. While they may represent a regionally connected aquifer system, the two formations are evaluated separately due to an identifiable difference in lithology and porosity. The Swan Hills Fm is mapped to from 24 to 264 m in thickness within the claims area and the Leduc Fm immediately overlies the Swan Hills Fm, where present, with a maximum thickness of 366 m within the claims area. The maximum observed combined thickness where the two units overlap within the property is 511 m of highly porous reservoir rock occur that would potentially present ideal locations for consideration within a PEA (Figure 2).



Figure 2: A-A' Cross-section through Park Place (as shown in Figure 3) of the effective porosity model for Leduc Fm and Swan Hills Fm.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10140/214147_ce6f8256f4b9fbb1_002full.jpg

Table 1: Park Place Lithium global in-situ Inferred Mineral Resource Estimations
Reporting parameters Leduc Fm Domain Swan Hills Fm Domain Combined Total
Total Volume (km3)1 501.2 660.5 1,161.7
Pore Volume (km3)2 25.1 28.4 53.5
Average Li Concentration (mg/L) 79.4 80.9 80.23
Average Effective Porosity (%) 5.0 4.3 4.64
Average brine pore space (%) 95 95 95
Total elemental Li resource (tonnes) 1,893,000 2,180,000 4,073,000
Total LCE (tonnes) 10,078,000 11,603,000 21,681,000


1. Total volume of rock and pore space
2. Total volume of effective porosity
3. Calculated using a weighted average (by pore volume) from the average grade of the Leduc and Swan Hills formations
4. Calculated using a weighted average porosity by total formation volume for both Leduc and Swan Hills formations

Note 1: Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will ever be upgraded to a higher category. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Note 2: The weights are reported in metric tonnes (1,000 kg or 2,204.6 lbs).
Note 3: Tonnage numbers are rounded to the nearest 1,000 unit.
Note 4: In a 'confined' aquifer (as reported herein), effective porosity is an appropriate parameter to use for the resource estimate.
Note 5: The resource estimation was completed and reported using a cut-off of 50 mg/L Li.
Note 6: To describe the resource in terms of industry standard, a conversion factor of 5.323 is used to convert elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE).

The NI 43-101 mineral resource three-dimensional model utilized over 1,171 wells that have been drilled into the Devonian aged strata being evaluated. Of the 1,171 wells, 420 have good quality data to make stratigraphic picks within the AOI as shown in Figure 3. The dataset consisted of 196 wells intersecting the top of the Leduc Fm, 300 wells intersecting the top of the Swan Hills Fm, and 236 wells intersecting the bottom of the Swan Hills Fm.

SLB constructed 3D geological and porosity models in Petrel™ subsurface software by using existing well logs and a combination of 3D and 2D seismic data acquired throughout the AOI at Park Place. SLB conducted petrophysical analysis of 118 wells, processed and interpreted 3D and 2D seismic data to correlate between acoustic impedance and porosity. Porosity data was parameterized in a 3D grid by distributing the porosity evaluated from well logs using a variogram derived from 3D and 2D seismic impedance data. Log porosity was verified via direct petrophysical correlations to core porosity measurements. This demonstrated that the petrophysical log-based porosity correlates well with effective core porosity.


Figure 3: Tonnage map of the Park Place indicating A-A' cross-section from figure 2 and wells used for stratigraphic picks.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10140/214147_ce6f8256f4b9fbb1_003full.jpg

Total in-place formation brine volume was obtained by multiplying the total rock volume of the Leduc and Swan Hills Fm within the AOI using the estimated porosity volume of the 3D grid.

An analysis of available oil and gas reserves information indicates an original hydrocarbon saturation of these reservoirs of approximately 5%. SLB models provided estimated volumes of each formation within the claims area by summing the effective porosity grid blocks overlapping the claims and assuming 95% of the pore space being brine saturated:The Leduc Fm, within the AOI, hosts 23.8 km3 of lithium-rich brine.
The Swan Hills Fm, within the AOI, hosts 26.9 km3 of lithium-rich brine.
Combined total of 50.8 km3 of brine within the AOI at Park Place.

North American Brine Resources



Figure 4: Comparison of LCE brine resources by select companies. With the addition of the Park Place inferred lithium resource, LithiumBank is now the largest known holder of inferred LCE brine resources by a company in North America.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10140/214147_ce6f8256f4b9fbb1_004full.jpg

Inferred Mineral Resource Calculation Process

During 2022 and 2024, LithiumBank obtained permission from two oil and gas companies to collect Leduc and Swan Hills formations brine samples from 2 separate oil and gas wells for the purpose of analytical testing.Three brine samples were collected from a 72-metre-thick vertical interval at the top of the Leduc Fm from well 100/12-03-059-23W5/00 and returned grades ranging between 71.2 – 82.0 mg/L lithium with an overall average of 77.2 mg/L lithium (Figure 1).
Three brine samples were collected from a 2-metre-thick vertical interval at the top of the Swan Hills Fm in well 100/01-23-062-20W5/00 returning grades between 75.5 – 84.9 mg/L lithium with an overall average of 80.1 mg/L lithium.

Samples were analysed at AGAT Laboratories, an ISO 17025:2017 certified lab, in Calgary Alberta. LithiumBank implemented Quality Control and Quality Assurance (QA/QC) protocols for the analysis. Testing of brine samples from the 2 wells included duplicate samples, sample blanks, and laboratory-prepared sample standards. Samples were collected from the well head by BV Labs technicians (Leduc samples) and AGAT Lab technicians (Swan Hills samples) and couriered to AGAT Laboratories for analysis in Calgary.

The LithiumBank brine sampling and analytical programs showed the Leduc and Swan Hills Formation aquifers underlying the Park Place Property contain elevated concentrations of lithium and the sampling program validated the post-2010s minerals industry exploration Li-brine results, with the exception of the historical Li-brine data compiled by the Government of Alberta ("GoA"). Hence, a total of 40 LithiumBank-derived and historical brine samples were used to determine the grade for the inferred mineral resource estimations (7 brine analyses from the Leduc Fm and 33 brine analyses from the Swan Hills Fm). Furthermore, Roy Eccles, a QP under NI 43-101 was involved in the historical minerals industry Li-brine sample collection campaigns and can therefore validate the collection, chain-of-custody, and analytical procedures that were used to determine select historical lithium-brine values. The QP was not able to validate the GoA data for use in the resource modelling and estimation process.

The QP assessed both within-property and adjacent property Li-brine data using historical mineral industry- and LithiumBank-derived Li-brine values. In the QPs opinion average Li-brine concentrations of 79.4 mg/L Li and 80.9 mg/L Li should be used to estimate the Li-brine mineral resources for the Leduc and Swan Hills aquifers, respectively, underlying the Park Place property. Additional brine sampling and assay testing is required at Park Place to provide additional confidence to the distribution of lithium within the Leduc Fm and Swan Hills Fm aquifers.

Resource Estimate Calculation

The NI 43-101 mineral resource estimates were calculated as a global in-situ resource within the Leduc and underlying Swan Hills formations. The Park Place Li-brine resource estimate is classified as an inferred mineral resource in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum definition standards and best practice guidelines (2014, 2019) and the disclosure rule NI 43-101 as adopted by the Canadian Securities Administrators.

Combined, the Leduc and Swan Hills Fm aquifers consist of a total of 1,161.7 cubic kilometres (Leduc Fm = 501.2 km3 and Swan Hills 660.5 km3). Within the aquifers, the Leduc Fm hosts 23.8 km3 of brine with a lithium concentration of 79.4 mg/L and the Swan Hills Fm hosts 26.9 km3 of brine with a lithium concentration of 80.9 mg/L. Total elemental lithium in the Leduc Fm is 1,893,000 tonnes and 2,180,000 million tonnes in the Swan Hills Fm. To determine the amount of elemental lithium the following formula was used:

RLi = A x T x P x C

With RLi = lithium resources of selected reservoir(kg), A = surface area (km2), T = thickness (m), P = effective porosity (expressed between 0 and 1), C = average concentration (mg/l).

Multiplying the elemental lithium by a factor of 5.323 determines the LCE quantities that are stated to be 9,643,000 tonnes inferred LCE in the Leduc Fm and 11,372,000 tonnes inferred LCE in the Swan Hills Fm. The combined inferred lithium-brine resource estimate of both the Leduc and Swan Hills Formations is 21,681,000 tonnes LCE with a weighted average lithium grade of 80.2 mg/L. Figure 3 illustrates the combined (Leduc and Swan Hills Fm) tonnage map of the AOI with hotter colours indicating areas of higher combined tonnage.

An evaluation of permeability of the reservoir was completed in addition to the reservoir pore volume. The QP for reservoir evaluation believes there is sufficient permeability and pressure within the reservoir that brine production wells can be completed to deliver brine to surface for consideration in future economic assessment scoping studies

Lithium Extraction Evaluation

The evaluation of the suitability of applying DLE as a mineral processing technology for Park Place has been overseen by Maurice Shevalier, P.Chem, of Matrix Solutions Inc., QP as defined in NI 43-101.

LithiumBank has yet to conduct mineral processing test work on brine from Park Place; however, brine characteristics of the Leduc Fm and the Swan Hills Fm at Park Place are similar enough to the brine at Boardwalk to safely assume the DLE technology used to extract lithium from the brine will be successful at Park Place. The Company is expected to conduct a bulk brine sampling program from both the Leduc and Swan Hills formations in H2 2024. Park Place will benefit from an existing, exclusive licensing agreement with G2L Greenview Resources Ltd. ("G2L") and piloting with their cDLE® Ion Exchange ("IX") technology. The G2L IX technology is unique in that it is designed to work at high flow rates while maintaining a very high recovery of lithium (98%) and achieving a high purity (70%) lithium eluate, as reported in the Boardwalk PEA dated effective February 22, 2024. The Boardwalk PEA demonstrates that lower cost and readily available reagents such as quick lime (CaO) and sulphuric acid (H2SO4) can produce a high purity lithium sulphate eluate and lowering the cost of downstream processing of an LHM.

The scientific and technical information relating to the Park Place mineral resources presented in this news release has been reviewed and approved by Mr. Alex Haluszka P. Geol. of Matrix Solutions Inc. Mr. Alex Haluszka is independent of LithiumBank and the Park Place property, and a Qualified Person as defined by NI 43-101.

The scientific and technical information relating to the Park Place mineral resources, related to the potential of lithium extraction, presented in this news release has been reviewed and approved by Mr. Maurice Shevalier, P.Chem, of Matrix Solutions Inc. Mr. Maurice Shevalier, P.Chem, is independent of LithiumBank and the Park Place property, and a Qualified Person as defined by NI 43-101.

The scientific and technical information relating to the brine sampling and lithium grade validation for the Park Place mineral resources presented in this news release has been reviewed and approved by Mr. Roy Eccles P. Geol. of APEX Geoscience Ltd. Mr. Eccles is independent of LithiumBank and the Park Place Property, and a Qualified Person as defined by NI 43-101.

Risks and Uncertainties

There is no guarantee that a company can successfully extract lithium from Alberta's Devonian petroleum system in a commercial capacity. Initial mineral processing bench-scale and/or demonstration pilot test work may not translate to a full-scale commercial operation.

LithiumBank has been dependent on petro-companies to access brine for chemical analysis. In the absence of not owning their own wells, LithiumBank must work with petro-companies to obtain small and bulk brine samples to build on its current data set. The Company is currently negotiating to selectively acquire existing wells within the AOI, similar to what the Company has done at Boardwalk (news release, May 16, 2024) to allow for additional brine sampling.

The information used to quantify the reservoir effective porosity was historical information collected through petroleum exploration in the study area. Therefore, there is an implicit bias in this dataset towards portions of the reservoir that are hydrocarbon saturated. Although the QP believes the reservoir properties are sufficiently representative of the bulk formation, this will need to be confirmed through continued exploration and data collection. The existing measurements come from a combination of secondary physical properties (geophysics) and core analysis that were upscaled to the bulk reservoir volume. The bulk reservoir properties have not yet been confirmed through targeted exploration drilling and pumping tests from the brine resource interval. Furthermore, DLE technologies have not been tested directly as an extraction technique for the Park Place brines. At the current time, DLE applicability has been inferred from testing activities completed at LithiumBank's other properties.

About LithiumBank Resources Corp.

LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF), is a publicly traded lithium company that is focused on developing its two flagship projects, Boardwalk and Park Place, in Western Canada. The Company holds 2,130,470 acres of brown-field lithium brine licenses, across three (3) districts in Alberta and Saskatchewan. The Company has licensed a DLE technology from Go2Lithium.

About G2L Greenview Resources Inc. (Go2Lithium)

G2L Greenview Resources Inc is a 100% owned subsidiary of Go2Lithium Inc. Go2Lithium Inc. was formed in early 2023 as a 50/50 joint venture between Computational Geosciences Inc (CGI), a subsidiary of the Robert Friedland-chaired Ivanhoe Electric Inc. (NYSE: IE) and Clean TeQ Water (ASX: CNQ). Please see Clean TeQ's website (www.cleanteqwater.com) for additional information on their suite of water treatment and metal extraction technologies.
END SEA BED MINING
Japan finds over 200 million tonnes of battery metals in seabed

Cecilia Jamasmie | June 25, 2024 |

Nodules collector vehicle. Image courtesy of The Metals Company.)

Japanese researchers have found more than 200 million tonnes of manganese nodules rich in battery metals in the Pacific Ocean, within the country’s exclusive economic zone.


The team of experts from the University of Tokyo and the Nippon Foundation said the fist-sized nodules cover an extensive area of the seabed near Minamitorishima, a remote Tokyo Island.

These metals-rich rocks are located at depths of about 5,500 metres and are thought to be very similar to the polymetallic nodules found in the Clarion-Clipperton zone in the Pacific, as they hold cobalt, nickel and copper in addition to manganese.

The team estimates the deposit contains 610,000 tonnes of cobalt (equivalent to 75 years of Japan’s consumption) and 740,000 tonnes of nickel (11 years), according to the Japan Times.

The Nippon Foundation and other entities expect to start large-scale extraction of nodules next year, to be delivered to Japanese companies with the capability to process them. Starting in 2026, the non-profit plans to set up a joint venture with multiple Japanese companies to develop the minerals as locally sourced materials.

The University of Tokyo will contribute to the project from an academic standpoint by conducting detailed analysis of the material extracted from the seabed.
Polymetallic nodules collected by The Metals Company during a deep sea trial in the Pacific Ocean in November 2022. (Image: The Metals Company.)

The presence of manganese nodules in the area was first found during a survey in 2016, which involved a team from the university and other organizations.

A thorough sampling survey was carried out from late April to early June this year to calculate the deposit estimates.

BMO analyst Colin Hamilton said the depth at which the nodules are found makes mining them more complex than it sounds. “Extraction will not be simple, and we see this as a potential test case for the benefits versus disadvantages of deep sea mining of materials relating to the global fuel to materials transition,” he wrote in a brief on Tuesday.

Hamilton noted that several key metals consumers have already stated they will not buy deep-sea-sourced materials until further studies are conducted on the potential impact of these activities

Polymetallic nodules, also called manganese nodules, contain four essential battery metals: cobalt, nickel, copper and manganese, in a single ore. (Image courtesy of The Metals Company.)

Major global banks such Credit Suisse, Lloyds, NatWest, and Standard Chartered, Dutch bank ABN Amro, and Spanish group Banco Bilbao Vizcaya Argentaria, have also make a point. They have all recently introduced policies that rule out funding deep-sea exploration and extraction.

Demand for nickel and cobalt is expected to surge in the coming decades. According to a White House paper, the demand for these metals is estimated to increase by 400% to 600% as battery-powered technology replaces oil and gas-powered systems.

The Metals Company (Nasdaq: TMC), one of the most advanced firms scooping up nodules from the seafloor, announced in early June that it had successfully produced the world’s first cobalt sulphate derived exclusively from seafloor polymetallic nodules.

The International Seabed Authority (ISA) is currently working on the world’s initial regulations for underwater mining, with plans to finalize the code by 2025. Despite the absence of formal rules, deep sea mining could technically start as soon as July, coinciding with the ISA’s upcoming meeting.

Norway to award Arctic blocks for seabed mining in 2025

By Reuters
June 26, 2024

A view shows active chimney venting at the Loki's Castle Vent Field on the Arctic Mid-Oceanic Ridge, and white microbial mats can be seen on the chimney at a depth of around 2,500m, in this undated handout picture. 
University of Bergen, Centre for Deep Sea Research/Handout via REUTERS /File Photo

OSLO, June 26 (Reuters) - Norway offered large areas of the Arctic region for its inaugural seabed mineral licensing round on Wednesday and aims to award exploration permits during the first half of 2025, the country's energy ministry said.
Norway may become the first country in the world to start commercial deepsea mining, hoping to extract minerals needed for solar panels, wind turbines and electric car batteries needed to replace fossil fuel energy.

"The world needs minerals for the green transition, and the government wants to explore if it is possible to extract seabed minerals in a sustainable manner from the Norwegian continental shelf," Energy Minister Terje Aasland said in a statement.
The government has previously said preliminary official resource estimates showed substantial accumulations of metals and minerals, ranging from copper to rare earth elements.

In January, the Norwegian parliament voted in favour of opening about 280,000 square kms (108,000 square miles) of ocean areas between Jan Mayen island and the Svalbard archipelago for seabed mineral exploration.
The 386 blocks proposed on Wednesday cover about 38% of the total area opened by parliament, and the selection was based on industry input, the energy ministry said.

Reuters Graphics
Seabed mining, however, has attracted criticism from environmentalists concerned at the prospect the pursuit of profit will disrupt one of the last parts of the natural environment that is relatively pristine and is little understood. They are challenging Norway's plans in court.

WWF, which filed the lawsuit in May, condemned the proposal on Wednesady, saying it was a significant blow to the country's reputation as responsible steward of the oceans.
Greenpeace, also on Wednesday, said the proposed blocks constituted a "shockingly large" area, given previous warnings from scientists regarding the potential impact on fragile ecosystems.
Seabed mineral exploration plans also face opposition from a number of countries, including France, that have called for a global moratorium to take more time to better understand the impact on deepsea organisms.

The Council of the European Union on Tuesday "noted, opens new tab with concern" Norway's seabed mining plans, emphasising the need for a thorough impact assessment.
The Norwegian government has said the initial exploration stage will have a minimal impact on seabed organisms and that companies will need separate consents before any production can start.

Oslo prepares first licensing round for seabed mining

The Norwegian government is ready to look thousands of meters into the abyss for precious mineral and metals, and now announces public consultations for a first licensing round.


Norway eyes extraction of seabed minerals in the North Atlantic. 
Photo: screenshot of video from the Norwegian Shelf Directorate

By Atle Staalesen
June 26, 2024
BARENTS OBSERVER 

Amid mounting domestic and international criticism, the Norwegian Ministry of Energy is starting preparations for a first licensing round on seabed minerals.

“The world needs minerals for the green transition, and the government wants to explore if it is possible to extract seabed minerals in a sustainable manner from the Norwegian continental shelf,” Energy Minister Terje Aslant says in a statement.

“Today, we are presenting our proposal for areas to be announced in the first licensing round for seabed minerals for public consultation. We plan to award licenses in the first half of 2025,” he explains.

The proposal includes large areas in the Norwegian Sea and the Greenland Sea.

Norway is among the first countries in the world to open up for commercial seabed mineral mining.

The controversial mining is supported by a solid majority in the Storting, the Norwegian parliament. But environmentalists and international experts warn about potential devastating consequences.

“I am not proud of being part of the ‘sea nation Norway’ today,” says Truls Gulowsen, leader of Friends of the Earth Norway.

“I believe researchers, environmentalists and the rest of the world looks strange at us,” he says in a comment on Facebook.

Also the Norwegian Sámi Parliament expresses opposition to the mining plans.

“For the Sámi and other Indigenous Peoples, the ocean is not just a resource, but a foundation of life, culture, and sustenance. The potential environmental degradation caused by deep sea mining could severely impact our food security, disrupt our traditional practices, and undermine our cultural heritage,” a statement from the Sami Council reads.

Also the EU is skeptical. Following Norway’s decision to greenlight seabed mining in early January 2024, the European Parliament voted in favour of a resolution against the plans.

With the resolution, the Parliament’s reaffirmed its support for a seabed mining moratorium and called on the EU Commission, Member States and all countries to apply a precautionary approach.

YUKON

New book on Father Mouchet to be launched Friday

“It” is the biography of Jean-Marie Mouchet, who realized the negative impact of colonialism on the Indigenous people in northern Canada in the 1940s.

It has taken 14 years of research, fact-checking, writing, editing, and designing, but it’s finally done. And it’s just in time for the Territorial Experimental Ski Training TEST reunion, which, next Saturday, will draw to Whitehorse former participants in the program between 1963 and 2013 from across Canada. 

“It” is the biography of Jean-Marie Mouchet, who realized the negative impact of colonialism on the Indigenous people in northern Canada in the 1940s.

Consequently, he designed a ski program to help youth reconnect to the land and provide them with a means to adapt to the social and cultural change that was on the horizon.

Local author John Firth will launch his book on Mouchet at 6:30 p.m. Friday on the tent grounds at Taylor House (the Commissioner’s Residence) on Main Street near the escarpment.

Mouchet’s Territorial Experimental Ski Training (TEST) program yielded multiple Olympians and made cross-country skiing the fastest-growing winter sport in Canada. It also placed both northern and Canadian skiers on the cross-country skiing world stage in addition to producing many First Nation leaders who led their people into the 21st century. 

Music at the launch will be provided by Roxx Hunter, while finger foods and non-alcoholic drinks will be made by Blue Feather Music Festival food guru Viola Papequash. The event is being organized by Gary Bailie.

Firth will be reading from and signing books, which will be available for sale on site. The mic will be available for others to speak of their time with Mouchet and the TEST program and how it influenced their lives. 

COMPRADOR NATIONS
Alaska Natives sue EPA over Pebble mine veto, Northern Dynasty says

Reuters | June 26, 2024 |

The Pebble project (Image courtesy of Northern Dynasty Minerals)

Northern Dynasty Minerals said on Wednesday two Alaska native village corporations had sued the Environmental Protection Agency (EPA) for its veto against the Canadian miner’s proposed Pebble mine in the state’s southwest region.


Iliamna Natives Limited and Alaska Peninsula Corporation, which represent the communities closest to the copper and gold mining project, sued the EPA for exceeding its authority related to the veto, Northern Dynasty said in a statement.

This lawsuit follows the one filed by the company in March against the EPA’s 2023 decision to prohibit the discharge of mining waste in Alaska’s Bristol Bay over concerns the materials would degrade the watershed and harm vital fishing ecosystems.

“Those who oppose Pebble have not provided any alternative that would improve the economy of this area. These two Native Village Corporations understand that the EPA and our opposition care little about their future,” said John Shively, CEO of the Pebble project.

The EPA, which claims the project would permanently destroy more than 2,000 acres of wetlands protected by the Clean Water Act, said it has no further information to provide as it is a pending litigation.

The proposed Pebble mine, which aims to tap one of the world’s largest copper and gold deposits, had gone thorough a lengthy approval and permitting process for decades, but its construction is yet to start.

(By Sourasis Bose; Editing by Shreya Biswas)

YUKON

Heap leach slide at minesite worries First Nation

 
June 25, 2024
The Yukon Star
 
AN UNPLANNED CLOSURE – A heap leach slide incident has shut down the Eagle Gold Mine. It’s located approximately 85 kilometres northeast of Mayo. 
(Photo courtesy Victoria Gold Corp.)

More details are emerging about the incident that has shut down Victoria Gold Corp.’s Eagle Gold Mine near Mayo, following what’s being described as a heap leach slide on Monday.

“This morning (Monday), the heap leach pad (“HLP”) at the Eagle Gold Mine in Yukon experienced a failure,” the company said Monday afternoon.

“Operations are temporarily suspended while the site operations team along with management continue to assess the situation and gather information.

“At this early stage, it can be confirmed that there has been some damage to infrastructure, and a portion of the failure has left containment. There have been no injuries to personnel associated with the incident. The company will provide further information as it becomes available.”

The Yukon Star has been unable to contact the company directly.

Victoria Gold shares were briefly removed from the Toronto Stock Exchange as the news was announced, but have resumed trading since.

Shares were selling at $1.10 Canadian this morning, down more than $6 from Monday, prior to the accident.

The First Nation of Na-Cho Nyäk Dun (FNNND) said it “is deeply concerned about reports that a significant heap leach failure caused a landslide at Victoria Gold Corp.’s Eagle Gold Mine.


“At this time, we are heartened that available information indicates that no personnel were harmed in this incident. We remain concerned, however, about the potentially significant and far-reaching environmental impacts, particularly to surrounding waters, fish, and wildlife.”

Early reports indicate the slide occurred near the mine heap leach facility and gold recovery plant, the First Nation noted.

“We are currently in contact with both Victoria Gold and Yukon Government, and the FNNND Lands and Resources Department has already been onsite to understand the cause of the slide and assess the extent and implications of the damage.

“This is a deeply serious incident, and we are monitoring it closely, with our staff on the ground and with our partners in public government,” said FNNND Chief Dawna Hope.

“Our first priority is to minimize the impacts on our lands, waters, and wildlife as well as on FNNND and any other affected First Nations. We will then seek to understand how and why this occurred.”

Kate White, the Yukon NDP Leader and MLA for Takhini-Kopper King, made the following statement today.

“Massive, potentially catastrophic failures like we saw yesterday at the Eagle mine are why the Yukon needs new and tougher mining legislation. The Yukon government has to do better at weighing the long-term risks that are put on Yukoners, and Yukon First Nations especially, when industry gambles on our ecological and economic future,” White said.

“We’ve seen time and again that Big Mining doesn’t pay for the clean up after a big fail. Yukoners and Canadian taxpayers do. Seven generations from now, it won’t matter how much gold came out of that mine. It’ll be infinitely more important that the land isn’t poisoned and that the Na-Cho Nyäk Dun and the people of Mayo have clean drinking water.”

Few details were available at publication deadline today, but a Department of Environment official told The Yukon Star Monday, “This morning, Victoria Gold Corp. reported a heap leach failure at Eagle Gold mine.

“The company has indicated no workers were harmed.

Mine operations have stopped while investigations are underway.

“Natural resource officers will be investigating.”


VICTORIA REPORTS LANDSLIDE ON EAGLE MINE’S
HEAP LEACH PAD

Source: Yukon News

Victoria Gold Corp. said it “experienced a failure” on the heap leach pad at the Eagle gold mine in Yukon. The company said operations have been suspended while the site operations team along with management continue to assess the situation and gather information. “At this early stage, it can be confirmed that there has been some damage to infrastructure and a portion of the failure has left containment,” the company said. “There have been no injuries to personnel associated with the incident.”

A photo published on the Yukon News website showed a significant landslide. Also, EOS, a landslide blog, posted before and after photos based on satellite imagery.

Last year, the Eagle mine stacked 9 million metric tons of ore on the leach pad, which generated nearly 167,000 oz of gold

UPDATE: Victoria Gold confirms heap leach pad failure and damage to mine infrastructure

Company says no one was injured in landslide. Some material from heap leach pad "left containment"
Jim Elliot
A landslide appears to have occurred on the site of Victoria Gold's Eagle Gold Mine north of Mayo. (Submitted)

A message posted to Victoria Gold's website and sent out via email has confirmed that there were no injuries associated with the failure and landslide at the mine's heap leach facility. 

The message also states that there has been some damage to mine infrastructure and that "a portion of the failure has left containment."

Heap leach mining involves the extraction of precious metals from ore using chemicals. 

"Operations are temporarily suspended while the site operations team along with management continue to assess the situation and gather information," the message reads. 

The company also pledged further information as it becomes available. 

Update 12:50 p.m: 

A representative of the Yukon government's Department of Energy, Mines and Resources has confirmed that Victoria Gold reported a heap leach failure at the Eagle Gold Mine this morning. Per the department spokesperson, the company has also reported that no workers were injured.

They added that mine operations have stopped as investigations by natural resource officers are underway.

Original Story: 

The News has received reports of a landslide at Victoria Gold Corp.’s Eagle Gold Mine north of Mayo. 

Submitted photos appear to show a large slide in the vicinity of the mine’s heap leach facility and gold recovery plant. 

Requests for information from the CEO of the mining company and the Yukon government Department of Energy, Mines and Resources have not been returned yet. 

This story will be updated with additional information as it becomes available.

Contact Jim Elliot at jim.elliot@yukon-news.com


 

South Korea's Rise as a Global Shipbuilder

DSME shipyard
File image courtesy Province of British Columbia

PUBLISHED JUN 23, 2024 2:41 PM BY BRIAN GICHERU KINYUA

 

 

During the World War II period, shipbuilding rose into one of the most critical sectors for most countries in continental Europe and the U.S. In these regions, shipyards represented the backbone of waterfront businesses, providing a lifeline for many coastal communities. But despite that demand for construction of new vessels is still high, shipbuilding in the West has hit an inflection point. Overall, shipbuilding production has fallen to historic lows, a case in point being the U.S where shipyards capable of building large vessels have declined by more than 80 percent since the 1970s.

The same cannot be said of the Asian region, where massive shipbuilding complexes are the world leaders in supplying modern ships. China, South Korea and Japan continue to maintain the top three position in the global shipbuilding market. But to understand this Asian monopoly in shipbuilding, we must break it down at the country level.

In this case, South Korea has the most intriguing case of how it developed its shipbuilding and could offer valuable insights for the developing and middle power countries vying for a similar position. In a new research paper published in the Marine Policy journal, Dongkeun Lee, a Korean Navy(ROKN) reservist officer and a researcher based at the College of Asia and the Pacific, in the Australian National University, Canberra(ACT), explores the unique case of the Korean shipbuilding rapid development between 1960s to the 2000s.

Lee characterizes the history of the South Korean shipbuilding as relatively shorter compared to other major shipbuilding countries. For this reason, it defied several critical factors historically believed to be requisites for any country vying for a dominant position in global shipbuilding.

First, South Korea is a late industrialized middle power country with limited resources and population. This is a contrast to most major shipbuilding countries including China, the U.S, Russia and Japan, which have a long history of shipbuilding due to early industrialization during the 18th and 19th centuries. In addition, these countries have substantial resources such as manpower and a strong economy to allocate to the shipbuilding industry.

Another notable exception is that some countries that fall into the same economic category as South Korea, such as Saudi Arabia and Australia, lack sufficient shipbuilding capabilities to fully meet the demands of their navies. Partly, for such late industrialized countries without sufficient man power, it is not economically rational to build indigenous shipbuilding industries because of the high initial costs.

It then begs the question how South Korea managed to break these barriers to have shipbuilding as one of its major economic mainstays. Indeed, this topic has been covered widely in the past. The question has been answered by pointing to government subsidies that protected South Korean shipbuilding from foreign competitors. South Korea’s military dictator Park Chung-hee, who served as the country’s president from 1963 to 1979, heavily subsidized the industry, under the so-called chaebol companies to boost the national economy.

In Lee’s recent analysis, he was for the first time able to utilize documents from South Korea’s presidential archive, which was established back in 2007. The documents offer valuable insights on the intentions behind Park’s decision to subsidize Korean shipbuilding.

Notably, in 1970s sea-based North Korean military provocations compelled South Korea to develop sea power. This would see South Korea start the implementation of the Patrol Boat Acquisition and Domestic Building Policy. It would herald South Korean indigenous warship-building industry, which is still supported by the current defense strategy. During the same period, the government also invested in expanding existing shipbuilding infrastructure for commercial vessels. Some of these shipyards are still in use today including the Okpo shipyard by Hanwha and Ulsan shipyard by Hyundai Heavy Industries(HHI).

In fact, this represents one of the unique characteristics of South Korean shipbuilding, where the government concurrently supported commercial and warship building capabilities. Chaebol companies that had received government subsidies during the 1960s became important players in warship construction during the 1970s- 1980s.

Meanwhile, as many western countries discontinued their shipbuilding during the end of the Cold War, South Korea shipbuilding persevered. Increased demand for commercial ships throughout 1990s-2000s also created a robust ecosystem for the Korean shipbuilding to thrive.

While Lee acknowledges that the South Korean model may not be sufficient for other developed countries, he singles out government subsidies as a critical starting point for developing the shipbuilding capabilities. In the case of economies such as Australia and Canada, where labor costs are high, one viable option for government subsidies could involve building high-value commercial ships alongside warships.  A good example is Italy’s Fincantieri, which not only builds cruise ships but also warships.  

 

Romania Begins Insolvency Against Damen Mangalia Shipyard

Romania shipyard
Daman Mangalia was put under control of an insolvency administrator (file photo)

PUBLISHED JUN 24, 2024 4:49 PM BY THE MARITIME EXECUTIVE

 

 

The long-running battle between Damen and the Romanian government over the operations of the Mangalia shipyard on the Black Sea took a new step as a court in Constanta initiated an insolvency procedure. An administrator has been appointed to look for a recovery plan for the shipyard.

The Netherlands’ Damen took operational control of the shipyard in 2018 with high expectations for the operation which remained 51 percent owned by the government. The yard had been in operation since 1976 known for 20 years as the 2 Mai Mangalia Shipyard. South Korea’s Daewoo launched a joint venture to operate the yard in 1997 and expanded the operations with a focus on commercial ships. In the next decade, the yard delivered over 200 ships.

Damen highlighted that the yard had three large drydocks and it was the largest in its group. Damen has a long history with Romania operating the Galati shipyard since 1999. Plans for Mangalia called for expansion and further investment in areas such as the outfitting capabilities.

Mangalia however was hit hard by the downturn in the shipping industry with the company citing the decline in demand from the offshore sector. They also reported increased competition from shipyards in Asia. When the pandemic hit the industry, Damen launched a plan for the reorganization of the yard. Plans for downsizing the operation and refocusing the business were not well received in Romania where it was reported Damen would reduce headcount at Mangalia by over 200 and at Galati by nearly 650 people. The company however in early 2023 highlighted a recovery including two HVDC (High-Voltage Direct Current) offshore transmission projects at the yard, both of which were being constructed under contracts with Aker Solutions as the main EPCI contractor.

The Romanian government in June 2023 passed a new law that gave it control of Mangalia and limited Damen’s involvement to a minority investor. The company protested but unable to resolve issues with the government moved in August 2023 to terminate the joint venture. Reports were at the time the yard was employing 1,500 full-time individuals plus contractors employees and flex-time staff.

Damen in April 2024 sought to take the case to an international arbitration court in Vienna. Damen was reported to be seeking compensation to end the joint venture and its loss of control of the yard. Reports in the Romanian media said that Damen had guaranteed more than $170 million in loans for the shipyard.

The shipyard filed for a bankruptcy proceeding at the end of May and last week the court decided to proceed with the insolvency. The administration set the first meeting for the end of August while saying it would be studying the business to understand its weaknesses and working to define a recovery strategy.  They said the aim was to provide as much stability and clarity in a complex situation.

Damen’s operations at Galati are separate from Mangalia where it was in a joint venture. 

 

Container Fire Containing Toxic Phosphorus Causes Antwerp Port Evacuations

Antwerp container terminal
Operations were suspended and vessels evacuated in Antwerp due to a container fire with toxic phosphorus (MPET file photo)

PUBLISHED JUN 24, 2024 1:54 PM BY THE MARITIME EXECUTIVE

 

 

A container fire in the Port of Antwerp prompted evacuations and a suspension of operations in sections of the container terminals overnight as emergency services worked to neutralize the danger. Operations we stopped for 12 hours with vessels evacuated as a precaution.

The Waasland fire brigade received reports of the container fire at 7:30 p.m. on Sunday night in the Beveren area which includes the Deurganckdok, one of the primary container handling areas of the port. The container burning was determined to contain yellow phosphorus. A commonly used chemical in fertilizer and other industrial applications, it is extremely toxic. Exposed to air it is flammable and inhaled it causes burning and in small amounts, it can be deadly to humans.

The MPET terminal used by MSC containerships and the DP World facility were both evacuated as a precaution. A ship moored in the port was also evacuated and all vessel traffic at Deurganckdok was also temporarily halted.

The fire service reported it was working with the chemical company BASF and the port. After approximately an hour, they were able to reduce the perimeter but continued to work to secure the container. As such, operations at MPET and Deurganckdok remained suspended. 

As of 0730 Monday morning, the fire service was reporting that the container had been moved to a “safe location.” The port said that they were doing everything possible to restart all activities as quickly as possible.

It was the second incident this month to interrupt operations at the container terminals in the Port of Antwerp. On June 6, port officials detected oil in the water that they determined was coming from a bunkering operation at the container terminal. A survey showed 20 ships, both sea vessels and barges, were polluted in Deurganckdock. Oil was also detected in the fairway and on the quay walls. 

Contaminated ships were prevented from leaving the port until they had been cleaned and the fairway also needed to be cleaned. Operations at one of the port’s locks were also suspended. Some ships were able to be cleaned quickly and proceed but operations continued to be impacted until June 18 when the Port of Antwerp reported that the cleanup operation had been completed.

CRIMINAL CAPITALI$M

Two Lockheed Subsidiaries Settle Charges of Overbilling U.S. Navy

T-44 pegasus
T-44 Pegasus aircraft are trainer planes for Navy and Coast Guard pilots who go on to operate P-8 patrol aircraft and HC-130 SAR planes (USN file image)

PUBLISHED JUN 24, 2024 10:36 PM BY THE MARITIME EXECUTIVE

 

 

Two subsidiaries of aerospace giant Lockheed Martin have agreed to pay $70 million to settle allegations that they overcharged the U.S. Navy for aircraft parts, according to the U.S. Department of Justice. The case was originally brought on behalf of the U.S. government by a whistleblower who worked at one of the firms involved.

The case centers on activities at Sikorsky Support Services Inc. (SSSI) back in the 2000s, when the company was a division of United Technologies. At that time, SSSI held a contract to supply aircraft maintenance and parts for the U.S. Navy's T-34, T-44 and T-6 training aircraft. To obtain parts, it subcontracted with another division of United Technologies, Derco. The legal problem arose from an internal agreement that these two divisions of the same company had with each other: one division of United Technologies (Derco) bought the parts, then sold them to a different division of United Technologies (SSSI) at a 32 percent markup. The DOJ alleged that SSSI knowingly used Derco's inflated invoices to bill the Navy, ultimately charging the taxpayer 32 percent more than the market price of the parts. 

In 2011, whistleblower Mary Patzer filed a civil suit against Sikorsky Aircraft, SSSI and Derco, alleging that this billing arrangement violated the False Claims Act. The Department of Justice intervened in the case in 2014 and took over the lawsuit. DOJ's legal team claimed that SSSI and Derco's top managers engaged in "a deliberate scheme to defraud the United States through the use of an illegal cost-plus-a-percentage-of-cost subcontract." In its complaint, the government claimed that Derco's then-president was aware that this arrangement was illegal, and pursued it anyways - even though the supply contract with the Navy made clear that there could be no markups on "the actual price of parts, material and shipping costs." 

Sikorsky, SSSI and Derco contested these allegations, but the district court ruled in favor of the U.S. government, finding that the 32 percent markup violated a federal statute barring this form of subcontracting price structure. Last week, the two sides reached an agreement to settle the matter for $70 million. 

“The U.S. Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract deterring future violations of the law.”

When Lockheed Martin purchased Sikorsky Aircraft from United Technologies in 2015, it acquired Derco and SSSI, and it inherited their ongoing litigation. The events alleged in the lawsuit predated Lockheed's involvement with either company. 

 

NTSB Homes In on Connector Device From Dali's Switchboard

Dali
Image courtesy USACE

PUBLISHED JUN 24, 2024 3:13 PM BY THE MARITIME EXECUTIVE

 

 

The NTSB has issued an update on its investigation into the disastrous allision of the boxship Dali with the Francis Scott Key Bridge in March, which destroyed the span, killed six workers and blocked off Baltimore's federal shipping channel for months. 

The container ship lost electrical power twice as it approached the bridge on the accident voyage. Both times, mission-critical circuit breakers that connect the ship's generators to the rest of the electrical distribution system tripped (opened), turning off all the lights - even though the generators continued to run.

The loss of electrical power temporarily disabled the ship's rudder and forced a shutdown of the main engine, causing the Dali lose propulsion and heading control as she approached the bridge's main spain. Though backup control of steering was restored when the emergency generator started, it was too little and too late to prevent an allision with the southwestern bridge pier. Dali's momentum crushed the pier on impact, collapsing the entire bridge truss in seconds. The damage will likely take years to restore. 

According to NTSB, the first set of breakers (HR1 and LR1) tripped when the Dali was just three ship lengths away from the bridge, causing the first blackout. With help from the OEM, the crew and other experts, NTSB has been examining these breakers closely at the component level to determine what might have gone wrong.

During testing, the investigators noticed "an interruption in the control circuit for HR1's undervoltage release." The undervoltage release is a device that trips the breaker when the voltage falls below a set threshold. 

The team pulled a terminal block - a female connector socket for plug-in components - out of the control circuit for the breaker undervoltage release (illustration at left, courtesy WAGO). Two sections of the control wiring associated with this terminal block were also removed from the switchboard, and these components were taken back to NTSB's laboratory for further testing. 

The agency did not release further information on its findings, and it emphasized that the update should not be taken as a conclusion about the root cause of the casualty. The broader investigation into the allision is still under way; while NTSB has no formal timeline for completion, based on the length of past inquiries, the process often takes approximately one year.  

Video: Containership Dali Underway Three Months After Baltimore Allision

Dali departing Baltimore
Dali passing the remains of the bridge outbound to Norfolk (screen grab SkyTeam 11 live feed)

PUBLISHED JUN 24, 2024 12:18 PM BY THE MARITIME EXECUTIVE

 

After a slight delay over the weekend, the containership Dali which became infamous for her allision with the Francis Scott Key Bridge in Baltimore got underway on Monday morning bound for Norfolk, Virginia. It is a carefully choreographed exercise as the vessel remains heavily damaged including without anchors and with debris and containers still aboard. 

The U.S. Coast Guard reports she is traveling under her own power with a full crew of 22 aboard as well as six salvage experts from Resolve Marine. Four tugs are accompanying the vessel on the trip which is expected to take 16 to 20 hours. The Coast Guard cutter Sailfish from Norfolk is maintaining a 500-yard safety zone around the ship and the salvage vessel Inceptor from Resolve Marine is following the trip. AIS signals show her traveling at 8 to 10 knots.

Strong safety protocols are being enforced during the transit as well as monitoring by the Coast Guard. One concern is that some of the debris might come loose and fall overboard, although most of the damage at the bow was secured or removed and a tarp was placed over some of the damaged areas. As an added precaution, the Maryland Transport Authority reported that traffic would be stopped on the Bay Bridge crossing the Chesapeake near Annapolis while the vessel transits the area.

 

 

MDTA footage of the Dali clearing the Bay Bridge this morning

 

The delays included last-minute arrangements for two additional crewmembers, both cadets, to leave the vessel. Initially, an agreement was made for eight ratings to return home to India and Sri Lanka as long as they would be made available or later depositions. The cadets were added to the agreement. The Dali had been at the Seagirt Terminal in Baltimore for the past 35 days for salvage operations after being removed from the bridge debris. 

According to media reports, four of the original crewmembers are staying with the vessel during the trip to Norfolk. Synergy Marine arranged for a replacement crew to join the vessel last week. Seven crewmembers were being transferred to hotels or apartments in the Baltimore area to await depositions and the legal cases. The four others presumably will be returning to Baltimore as they are also parties to the various legal cases and potential actions by the U.S. Department of Justice.

 

Dali preparing to depart with USCG escort and tarp covering damaged areas (USCG photo)

 

Once the Dali reaches Virginia, she will be first going to the Virginia International Gateway in Portsmouth on the Elizabeth River south of Norfolk. Virginia International Gateway is a privately owned terminal leased by the Virginia Port Authority. It is one of the VPA’s two main container terminals. There the Coast Guard reports at least 1,500 containers will be offloaded from the Dali to reduce the vessel’s draft.

At a later date, the Dali will again be shifted this time to the Norfolk International Terminal. While in Norfolk the vessel is to receive initial repairs before the owners, Grace Ocean, transfer her to another shipyard likely in Asia for additional repairs.