Podcast: How are the USA's historic new Vogtle nuclear units doing?

04 July 2024

Southern Nuclear's Senior Vice President at Vogtle 3 and 4, John Williams, on the achievement of completing the first new US nuclear power units in more than 30 years - and the lessons which can be shared.

Williams talks about the "tremendous pride" felt by everyone involved in completing the new units, with both Westinghouse AP1000s performing well and Vogtle 3 operating at 98% capacity since being put into service a year ago. As well as the direct jobs - 9000 workers were on site at peak construction - he says the new units are demonstrating the benefits of carbon-free energy, and the role that can be played in the future of energy in the US and further afield.

The project had many well-documented challenges to overcome - the impact of Fukushima, Westinghouse's Chapter 11 bankruptcy in 2017 and the global pandemic - and Williams outlines some of the lessons learned which Southern Company - Southern Nuclear and Georgia Power's parent company - is committed to sharing with utilities in the US and other countries as they embark on their own projects.

The first lesson, he says, is the need for resilience, which has been demonstrated by the project partners Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities, and operator Southern Nuclear

Others include a "tremendous partnership" with the workforce, a constructive regulatory environment at both state and federal level and "we can't stress enough how important it is that the engineering design of a power plant is sufficiently complete to support efficient construction".

Vogtle 3 and 4, pictured in March 2024 (Image: Georgia Power)

 

He added: "Our last one that we always tell is that it's important that the owner and operator of the facility own the project from the beginning. There are myriad of commercial arrangements whereby these projects could get built, but whoever's going to own it and operate it is ultimately responsible for the cost for the schedule, for the regulatory compliance and we believe ownership by that owner operator is critical from the very beginning."

Williams said that over the years there have been "ebbs and flows but I think right now public opinion around nuclear energy is probably at its highest because people recognise the solution that it can play as we look to fight climate change. So we need reliable energy in a way that minimises impact to the environment. Nuclear energy is the right solution for that."

In the World Nuclear News round-up Claire Maden reports on the progress of the ADVANCE Act in the US, Kazakhstan's plans for a referendum later this year on new nuclear, and the latest uranium-mining developments in Niger.

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Episode credit:  Presenter Alex Hunt. Co-produced and mixed by Pixelkisser Production 

US study examines feasibility of coal-to-nuclear conversion

10 July 2024

A study by researchers at the University of Michigan ranks the feasibility of converting 245 operational coal power plants in the USA into advanced nuclear reactors, providing valuable insights for policymakers and utilities to meet decarbonisation goals.

The Petersburg coal plant in Indiana was found to be the most feasible large plant to convert to nuclear (Image: AES Indiana)

In 2022, coal-fired power plants accounted for nearly 20% of total energy generation in the USA, resulting in the emission of 847 million metric tonnes of CO2, equivalent to 55% of the country's total CO2 emissions from the power sector.

Coal power plants (CPPs) are being phased out in many countries, including the USA. Utilities across the nation have incorporated the transition from coal-fired generation to cleaner energy resources into their Integrated Resource Plans. Furthermore, several utilities have set a goal to retire all CPPs within the next 15 years.

As part of this transition, there is a need to repurpose retired CPPs to alternative clean sources - one possibility is nuclear energy, which can generate the same stable base load of energy as coal but with zero carbon emissions, the study says.

Rather than establishing new sites, transitioning operational CPPs to nuclear plants can save time and money by using existing equipment like transmission lines and power system components. Surrounding communities also stand to benefit from the transition, retaining jobs and tax bases as coal plants are phased out.

The new University of Michigan study systematically evaluates the potential for coal-to-nuclear (C2N) energy transitions in the USA using the Siting Tool for Advanced Nuclear Development (STAND). Developed by the University of Michigan, National Reactor Innovation Center in Collaboration, Argonne National Laboratory, Idaho National Laboratory and Oak Ridge National Laboratory, STAND enables users to input socioeconomic factors, safety, and proximity parameters to select potential advanced nuclear reactor development sites.

"The tool's ability to evaluate multiple sites simultaneously while balancing a suite of objectives offers a more scalable and robust analysis than previous studies, which focused on a few specific plants," the researchers noted.

The 245 operational coal plants studied were classified into two different groups based on their nameplate capacity. "Since advanced nuclear reactors are divided into various classes, such as microreactors, medium-scale reactors, and small modular reactors, it is necessary to categorise coal plants accordingly to match their capacity for a smooth transition to nuclear power," the study says.

Results revealed a broad spectrum of suitability levels and tradeoffs across different locations, highlighting both the feasibility and complexity of transitioning from coal to nuclear capacity. For the smaller electric capacity group, the feasibility score ranged from 51.52 to 84.31 out of 100 with a median of 66.53. The larger electric capacity group ranged in feasibility scores from 47.29 to 76.92 with a median of 63.97.

The R M Schahfer coal plant in Indiana emerged as the most feasible smaller electric capacity site, generating 1000 MWe or less, while the AES Petersburg plant in Indiana was top-ranked among the larger electric capacity sites, having generation capacity greater than 1000 MWe.

"The analysis conducted by STAND can benefit energy modelers, stakeholders, policymakers, utilities, and energy industries in making informed decisions," the study concludes. "It provides a top-down approach to assessing the potential for C2N transition in different coal sites. However, it is essential to emphasise that further on-site geological investigations, environmental assessments, and community engagement processes are necessary before finalising decisions related to reactor licensing."

"My hope is that this work, which looks at the potential for coal-to-nuclear transitions in a very granular way, for each coal plant across the country, can inform the national and state-level conversations that are unfolding in real time," said Aditi Verma, assistant professor of nuclear engineering and radiological sciences at University of Michigan and senior author of the study.

The study - published in Energy Reports - was sponsored by the Department of Energy Office of Nuclear Energy, funded through the Nuclear Energy University Program.

The possibility of replacing coal power plants with nuclear capacity is being actively explored in the USA and elsewhere. TerraPower in 2021 announced plans to build a demonstration unit of its Natrium sodium-cooled fast reactor at a retired coal plant site in Wyoming; in 2022, the the Maryland Energy Administration announced its support for work to evaluate the possibility of repurposing a coal-fired electric generating facility with X-energy’s Xe-100 small modular reactor; and Holtec International recently said it is considering coal plant sites as possible locations for its SMR-160 with plans to bring the first unit online as early as 2029. In Poland, NuScale is exploring with energy company Unimot and copper and silver producer KGHM possibilities for its reactors to replace coal-fired power plants.

Dominion considers deploying SMR at North Anna

11 July 2024

US utility Dominion Energy has issued a Request for Proposals from small modular reactor vendors to evaluate the feasibility of developing an SMR at its North Anna nuclear power plant in Virginia.

Governor Youngkin with plant employees after his ceremonial bill-signing at North Anna (Image: Dominion Energy)

"While the RFP is not a commitment to build an SMR at North Anna, it is an important first step in evaluating the technology and the North Anna site to support Dominion Energy customers' future energy needs consistent with the company's most recent Integrated Resource Plan (IRP)," Dominion said.

In its 2023 IRP, the company said it plans to continue evaluating the feasibility, operating parameters, and costs of SMRs and will update modeling assumptions related to SMRs in future filings.

"Potential cost reductions relative to the assumptions reflected in the 2023 Plan may be realised as the design of SMRs matures and as anticipated construction schedules are established. Based on updated capital, operating and maintenance costs, continued progress of licensing timelines, and new policy initiatives or legislative changes, it is conceivable that the deployment of SMRs could be further accelerated by the company, with the first SMR being placed in service within a decade," it said.

The issuance of the RFP was announced at an event on 10 July at the North Anna site. Company leaders were joined at the event by Virginia Governor Glenn Youngkin, Virginia Lieutenant Governor Winsome Earle-Sears, Virginia State Senator Dave Marsden, Virginia State Senator Mark Peake and Louisa County Board of Supervisors Chair Duane Adams, among other local and state leaders.

Dominion also announced that it intends to seek "rider recovery" of SMR development costs in a filing with the Virginia State Corporation Commission expected later this year. This was enabled by bipartisan legislation passed by the Virginia General Assembly earlier this year. Governor Youngkin ceremonially signed the legislation at the event at North Anna.

The legislation contains cost caps limiting current SMR development cost recovery to no more than USD1.40 per month for a typical residential customer. Dominion anticipates that its initial request will be substantially below that limit.

"For over 50 years nuclear power has been the most reliable workhorse of Virginia's electric fleet, generating 40% of our power and with zero carbon emissions," said Robert Blue, chair, president and CEO of Dominion Energy. "As Virginia's need for reliable and clean power grows, SMRs could play a pivotal role in an 'all-of-the-above' approach to our energy future. Along with offshore wind, solar and battery storage, SMRs have the potential to be an important part of Virginia's growing clean energy mix."

Governor Youngkin added: "The Commonwealth's potential to unleash and foster a rich energy economy is limitless. To meet the power demands of the future, it is imperative we continue to explore emerging technologies that will provide Virginians access to the reliable, affordable and clean energy they deserve. In alignment with our All-American, All-of-the-Above energy plan, small nuclear reactors will play a critical role in harnessing this potential and positioning Virginia to be a leading nuclear innovation hub."

The North Anna site is currently home to two 944 MWe pressurised water reactors, which began commercial operation in 1978 and 1980, respectively. Under their current licences, North Anna units 1 and 2 can continue to operate through 2038 and 2040, although Dominion has applied for 20-year extensions for both units.

Aalo prepares for US licensing of microreactor

10 July 2024

Aalo Atomics has submitted a pre-application regulatory engagement plan (REP) with the US Nuclear Regulatory Commission (NRC) for its Aalo-1 microreactor, detailing the planned pre-licensing application interactions with the regulator.

(Image: Aalo Atomics)

An REP helps reactor developers' early interactions with NRC staff and can reduce regulatory uncertainty and add predictability to licensing advanced technologies. There is no regulatory requirement for an REP, and the guidelines note that the topics and appropriate level of detail a prospective applicant would wish to include are entirely voluntary and should be agreed upon in discussions between the applicant and NRC staff.

Austin, Texas-headquartered Aalo said: "By setting expectations, building trust, and addressing the NRC's questions and concerns early on, we aim to create a safe, socially acceptable, and commercially viable Aalo-1 reactor for the Idaho Nuclear Project."

The company said that initially, this project will feature seven independent Aalo-1 reactors, potentially expanding to an additional seven reactor units.

"Once we get the green light and start construction, this will be the highest number of nuclear reactors at a single site in the US - a game-changer for small reactor clusters," Aalo said. "This plant will help our partner utility provide affordable, reliable electricity to meet current and future energy and sustainability needs. We aim to have it up and running by 2029."

In May, Aalo announced it had completed the conceptual design of the Aalo-1 - a factory-fabricated 10 MWe sodium-cooled microreactor that uses uranium zirconium hydride (UZrH) fuel elements. It plans to construct a full-scale, non-nuclear prototype of the reactor that will be used to test and refine its technology, ensuring that Aalo-1 meets its technical, regulatory, and economic targets.

The company also said in May that it had signed a siting memorandum of understanding with the Department of Energy (DOE), marking the first step towards deploying its first Aalo-1 reactor at the Idaho National Laboratory (INL) site in Idaho. "While not yet confirmed, Aalo intends to leverage this siting MoU towards locating the first Aalo-1 reactor at the Central Facilities Area site within INL, a location chosen to collocate with newly constructed megawatt-scale electrolysers, and INL's upcoming hydrogen motorcoach fleet," Aalo said.

It plans to submit a combined construction and operating licence application (COLA) for the project in 2026.

In December last year, Aalo was among the first FY2024 recipients announced for GAIN vouchers. The federally funded vouchers aim to accelerate the innovation and application of advanced nuclear technologies by providing companies access to the extensive nuclear research capabilities and expertise of the US Department of Energy's national laboratory complex.

GAIN - Gateway for Accelerated Innovation in Nuclear - is an initiative launched in 2016 by the DOE Office of Nuclear Energy which helps businesses overcome critical technological and commercialisation challenges of nuclear energy technologies through a voucher system, giving stakeholders access to the DOE's R&D facilities and infrastructure to support the cost-effective development of innovative nuclear energy technologies. All awardees are responsible for a minimum 20% cost-share, which could be an in-kind contribution.

Aalo was awarded GAIN vouchers to collaborate with INL to evaluate modelling and simulation capabilities for the fuel and core system of the Aalo-1 microreactor, which is inspired by INL's planned MARVEL microreactor.

Researched and written by World Nuclear News

EXPERIMENTAL-SCI-FI-TEK

AtkinsRéalis to design fusion plant for Type One Energy

11 July 2024

US fusion energy developer Type One Energy has selected Canadian engineering firm AtkinsRéalis to develop the pre-concept design for its Fusion Pilot Plant, which will use stellarator technology to demonstrate its potential to generate clean, safe and affordable power from fusion energy.

An impression of how the stellarator may look (Image: Type One Energy)

AtkinsRéalis said its UK-based fusion team will work alongside US capabilities and expertise to provide multi-disciplinary engineering services, to develop the full plant requirements, pre-conceptual facility designs, and a preliminary site layout. Working in close collaboration with Type One Energy, AtkinsRéalis will integrate established project delivery solutions alongside novel fusion technologies, seeking to de-risk the delivery of the fusion plant while optimising cost.

"This programme of work is the first step in a strategic partnership with Type One Energy as they commercialise their technology and progress the potential of fusion to power the US' energy transition," said Jason Dreisbach, director of advanced energy technologies at AtkinsRéalis. "With our global fusion expertise, we are uniquely positioned to support the transition of Type One Energy's fusion technology into a commercially viable and sustainable source of energy to power a net-zero future."

"We selected AtkinsRéalis because of its subject matter expertise across multiple disciplines, including engineering, planning, and deployment, as well as its accumulated knowledge and market presence in the emerging fusion technology space," said Type One Energy’s Vice President of Global Partnerships and Supply Chain Management Gregg Schneider. "We believe that developing long term business and functional level relationships will serve both parties as additional work scopes are contemplated over the next decade."

In February, Type One Energy announced plans to build Infinity One - its stellarator fusion prototype machine - at Tennessee Valley Authority's (TVA's) Bull Run Fossil Plant in Clinton, Tennessee. The project is the result of a tri-party memorandum of understanding signed in 2023 between TVA, Type One Energy and the US Department of Energy's Oak Ridge National Laboratory, in which the partners expressed an interest in the successful development and commercialisation of economic and practical fusion energy technologies.

The construction of Infinity One could begin in 2025, following the completion of necessary environmental reviews, partnership agreements, required permits, and operating licenses, Type One Energy noted. It will allow the company to verify important design features of its high field stellarator Fusion Pilot Plant, particularly those related to operating efficiency, reliability, maintainability, and affordability.

Type One Energy's Infinity One is a stellarator fusion reactor - different to a tokamak fusion reactor such as the Joint European Torus in the UK or the Iter device under construction in France. A tokamak is based on a uniform toroid shape, whereas a stellarator twists that shape in a figure-8. This gets round the problems tokamaks face when magnetic coils confining the plasma are necessarily less dense on the outside of the toroidal ring.

Type One Energy said it "applies proven advanced manufacturing methods, modern computational physics, and high-field superconducting magnets to develop its optimised stellarator fusion energy system".

Researched and written by World Nuclear News

 NUCLEAR WASTE 

Canadian town declares willingness to host repository

11 July 2024

The Township of Ignace in north-western Ontario has become the first community to confirm its willingness to move forward to the next phase of the site selection process to host a deep geological repository for Canada's used nuclear fuel.

NWMO President and CEO Laurie Swami congratulates Mayor Kim Baigrie on Ignace confirming that it is willing to host a deep geological repository (Image: NWMO)

Canada's Nuclear Waste Management Organization (NWMO) launched the process to select a suitable site for the deep geological repository (DGR) for Canada's used nuclear fuel in 2010. By 2012, 22 communities had expressed an interest in learning about the project and exploring their potential to host it. Eleven of those communities went forward to the second phase of NWMO's preliminary assessment process. By the end of 2019, the list of potential host communities had been narrowed down to two: the Revell Site, some 43 km northwest of the town of Ignace, and 21 km southeast of the Wabigoon Lake Ojibway Nation; and the South Bruce Site, about 5 km northwest of Teeswater in the municipality of South Bruce.

Ignace's willingness process provided numerous opportunities for the community to provide input on the project. A multi-phased community engagement programme led by a third-party engagement consultant, With Chéla Inc, included direct dialogue with residents, youth engagement and a community vote open to residents 16 and older. In addition, a volunteer Willingness Ad Hoc Committee considered the results of the engagement activities and provided guidance to Council on the community’s willingness to host the project.

The recommendations to Council outlined that 77.3% (495 participants) voted in favour of becoming a willing host community, whilst 20.8% (133) voted against and 1.9% (12) abstained. With Chéla estimated there were 1035 eligible participants and 660 opted into the process.

At a special meeting on 10 July, Ignace Council unanimously accepted and endorsed a set of recommendations from the Willingness Ad Hoc Committee and passed a resolution addressed to NWMO that indicates that the town is a willing host community for the DGR.

"We are proudly the first community in Canada to be indicating our support and our willingness to continue in the selection process by the NWMO in the potential siting of the DGR project in this area," said Mayor Kim Baigrie. "The residents of the Township of Ignace have spoken loud and clear and we fully respect their direction as a Council, and we clearly have now indicated our support through an official resolution to the NWMO based on the recommendations from our Willingness Ad Hoc Committee members."

"The endorsement by Township Council of this recommendation from the Willingness Ad Hoc Committee in no way, either guarantees that the Township will host a deep geological repository for used nuclear fuel, or that a final decision by the NWMO has been made on the actual siting of this multi-billion-dollar project," Ignace Council noted in a statement. "It simply indicates, through an official resolution to NWMO, that the community of Ignace has undertaken a willingness process and has now agreed to continue to be a potential willing host towards the decision from NWMO slated for later this year."

A concept for the Canadian used nuclear fuel repository (Image: NWMO)

"We congratulate the Township and its residents for reaching this important step and admire the thought and care that has gone into this process and into shaping what the project could look like in the community," said NWMO Vice-President of Site Selection Lise Morton. "We could not have gotten to where we are today without the leadership and dedication to learning shown by the people of Ignace."

NWMO continues to collaborate with the three other communities involved in the site selection process to understand community willingness to move forward. Discussions are ongoing with Wabigoon Lake Ojibway Nation (WLON) in the northwest, Saugeen Ojibway Nation (comprised of the Chippewas of Nawash Unceded First Nation and the Chippewas of Saugeen First Nation) and the Municipality of South Bruce in the southwest, which will hold a municipal referendum in October.

NWMO has always said that the project will only proceed in an area with informed and willing host communities, where the municipality, Indigenous peoples, and others in the area are working together to implement it.

The Ignace Council said it respects that a decision by WLON will also be required to proceed if northwestern Ontario is selected to host the DGR.

NWMO is expected to make a final decision on the siting of the DGR by the end of December 2024. Once the final site selection has been made, its safety will be confirmed through a rigorous regulatory review of the repository design and safety case. The regulatory and licensing process is expected to take about 10 years to complete.

Construction of the repository is expected to begin in 2033, with operations beginning in the early-2040s.

Researched and written by World Nuclear News

 

UN motion calls for Zaporizhzhia plant's return to Ukrainian control

12 July 2024

The United Nations General Assembly voted by 99 votes to 9, with 60 abstentions, for Russia to "immediately return the plant to the full control of the sovereign and competent authorities of Ukraine". Meanwhile the IAEA warns about the impact of the war on the city where most of the nuclear power plant workers live.

IAEA experts have been at the plant for nearly two years (Image: IAEA)

Extracts of United Nations resolution

The UN General Assembly resolution "demands that the Russian Federation urgently withdraw its military and other unauthorised personnel from the Zaporizhzhia nuclear power plant and immediately return the plant to the full control of the sovereign and competent authorities of Ukraine to ensure its safety and security and in order for the International Atomic Energy Agency to conduct safe, efficient and effective safeguards implementation in accordance with the comprehensive safeguards agreement and additional protocol of Ukraine, consistent with the repeated calls by the General Conference and the Board of Governors of the Agency".

It also "calls upon the Russian Federation, until it returns the Zaporizhzhia nuclear power plant of Ukraine to the full control of the sovereign and competent authorities of Ukraine, to provide the International Atomic Energy Agency Support and Assistance Mission to Zaporizhzhia with timely and full access to all areas at the plant that are important for nuclear safety and security in order to allow the Agency to report fully on the nuclear safety and security situation at the site".

And it calls upon "all parties to the armed conflict to implement fully the 'seven indispensable pillars for ensuring nuclear safety and security during an armed conflict' and the five concrete principles of the Director General of the International Atomic Energy Agency to help to ensure nuclear safety and security at the Zaporizhzhia nuclear power plant ... urges the Russian Federation to immediately remove all anti-personnel mines placed along the perimeter of the Zaporizhzhia nuclear power plant".

What was Russia's reaction?

Russia's First Deputy Permanent Representative to the UN, Dmitry Polyansky, was reported by the official Tass news agency as calling it "another nonconsensual, politicised draft [which] will have absolutely no effect on the ground, as the previous ones". The resolution was opposed by nine countries - Belarus, Burundi, North Korea, Cuba, Mali, Nicaragua, Russia, Syria and Eritrea - with the 60 abstaining including India and China.

Continuing IAEA concerns about safety at Zaporizhzhia

The International Atomic Energy Agency (IAEA), in its latest update on the situation at the Zaporizhzhia nuclear power plant (ZNPP), said it was concerned about military action in the area and especially its impact on the workers who live in the nearby town of Energodar which has suffered power cuts, water shortages and forest fires over recent days.

The IAEA said it had been told by the operators of ZNPP an attack had damaged an electrical transformer in a sub-station in Energodar as well as shelling which damaged a water pumping station. Director General Rafael Mariano Grossi said: "These latest attacks have not targeted the nuclear power plant directly, as in April. However, continued military activity in the region remains a serious concern and it is essential that the ... plant is protected to ensure nuclear safety and security. The sporadic loss of basic living essentials such as electricity and drinking water is affecting the staff and families at all nuclear power plants and facilities throughout Ukraine, potentially impacting on their ability to perform their important nuclear safety and security work."

The six unit nuclear power plant, which has been under Russian military control since early March 2022, is located on the frontline of the Russian and Ukrainian forces. There have been IAEA experts stationed at the site since September 2022 as part of efforts to support safety and security measures. They conduct regular walks and inspection of parts of the site, but have "continued to hear explosions and gunfire at various distances from the plant on a near daily basis over the past week".

They also reported that the recent hot weather had led to the level of the cooling pond dropping by about one centimetre a day, falling to below 15 metres for the first time since the Kakhovka dam was destroyed last year.

Elsewhere in Ukraine

The IAEA also has experts stationed at Ukraine's other nuclear power plants - Khmelnitsky, Rivne and South Ukraine, as well as at Chernobyl - and they report that nuclear safety and security is being maintained. The IAEA also says that a further four deliveries of equipment took place over the past week to support Ukraine in maintaining nuclear safety and security - bringing the total number of deliveries to 55 since the war began.

The Rivne nuclear power plant received measurement instruments, Khmelnitsky got filter absorbers, there was nuclear security equipment for State Enterprise USIE Izotop and also power supply units for the radiation monitoring network operated by the State Emergency Service of Ukraine.

Researched and written by World Nuclear News

 British Columbia

Teck Coal charged for alleged dumping harmful to fish in B.C

Environment Canada said the charges stem from an investigation that began in March 2023

The Canadian Press · Posted: Jul 11, 2024 

A sign welcomes people to Sparwood, B.C., near Teck Coal's Line Creek operations. (Jeff McIntosh/The Canadian Press)

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Environment Canada has laid five charges against Teck Coal Limited after the company was alleged to have dumped harmful substances into waters frequented by fish in southeastern B.C.

The department says the charges for violations of the Fisheries Act stem from an investigation that began in March 2023. 

It says officers were looking into an allegation that the resource company deposited a substance into Dry Creek from its Line Creek Operations coal mine and into the adjacent Fording River. Both bodies of water are frequented by fish, according to the ministry.

• IN DEPTH
  Tracing the toxic impact of B.C. coal mining

Environment Canada says a so-called deleterious substance can include oil, chemicals and pesticides that, if added to water, would degrade or alter the water quality to the point that it could harm fish.

Prior to this legal challenge, Teck Coal had also been fined tens of millions of dollars for contaminating waterways in B.C. over the years.

• Coal company Teck fined $60M for contaminating rivers in southeastern B.C.

• B.C. fines Teck Coal $16 million for contaminating Kootenay waterways

• $6.4B needed to clean toxic selenium from B.C. coal mines: report

The five recent charges against the company have not been tested in court. The ministry's news release does not indicate a court date. 

On Thursday, Teck also announced that the company has closed the sale of its B.C. coal mining operations to Glencore. When reached for comment, the spokesperson for Teck referred CBC News to the Swiss commodities giant.

• Teck closes sale of B.C. coal mining operations to Swiss company

Glencore said in a statement to CBC News that the Elk Valley Resources business will be liable for any penalties payable from the charges.

"We will not comment further on ongoing legal matters but will honour the commitments made under the ICA and note that EVR has made significant progress in advancing the Elk Valley Water Quality Plan and will continue these efforts," the statement said. 

With files from Alex Nguyen

Environment and Climate Change Canada Enforcement lays five charges for contraventions of subsection 36(3) of the Fisheries Act 

Français

NEWS PROVIDED BY

Environment and Climate Change Canada

Jul 11, 2024,


CRANBROOK, BC, July 11, 2024 /CNW/ - The Government of Canada is committed to protecting the health, safety, and environment of Canadians. Environment and Climate Change Canada enforces the laws that protect the air, water, and natural environment in Canada, and it takes pollution incidents and threats to the environment very seriously.

On July 10, 2024, Environment and Climate Change Canada Enforcement laid five charges against Teck Coal Limited for contraventions of subsection 36(3) of the Fisheries Act. Under subsection 36(3) of the Fisheries Act, it is prohibited to deposit or to permit the deposit of a deleterious (harmful) substance into water frequented by fish, or in any place where the deleterious substance may enter any such water.

The charges stem from an investigation opened by Environment and Climate Change Canada enforcement officers on March 7, 2023. The investigation was conducted into alleged deleterious (harmful) deposits into Dry Creek on Teck Coal Limited's Line Creek Operations Mine in British Columbia, and the adjacent Fording River.

All charges are currently before the Court, and they have not yet been proven. Under Canadian law, those charged are presumed innocent until proven guilty. Therefore, Environment and Climate Change Canada will not be commenting further at this time.

Environment and Climate Change Canada has created a free subscription service to help Canadians stay current with what the Government of Canada is doing to protect the natural environment.

Quick factsEnvironment and Climate Change Canada enforcement officers are responsible for administering and enforcing the pollution prevention provisions of the Fisheries Act.
Dry Creek and the Fording River are waters frequented by fish, as defined under the Fisheries Act.
Mining of coal can create large volumes of waste rock that, when exposed to water and air, may accelerate the release of contaminants including (but not limited to) selenium and nitrate.
A deleterious substance can be any substance such as oil, chemicals, and pesticides that if added to water would degrade or alter the water quality to the point that it could harm fish.
The Fisheries Act allows for two types of charges —those by summary conviction and the other by indictment. The charges against the company were laid by indictment. Offences charged by indictment are deemed more serious.

Associated linksFisheries Act (Pollution Prevention Provisions)
Frequently Asked Questions: Fisheries Act Pollution Prevention Provisions
Testing for Toxicity to Fish

Environment and Climate Change Canada's X (Twitter) page

Environment and Climate Change Canada's Facebook page

SOURCE Environment and Climate Change Canada

China pauses new coal-based steelmaking for first time in years

Bloomberg News | July 11, 2024 | 

The production of steel currently accounts for 8% of the world’s total carbon emissions. 

(Stock image by Anelo.)

China didn’t permit any coal-based steelmaking projects in the first half of the year for the first time since announcing its major climate neutrality goals in 2020, according to a report released Thursday.


All 7.1 million tons a year of steelmaking capacity permitted by provincial governments in the first half used electric arc furnaces, a cleaner process that runs on recycled scrap and electricity, said the Center for Research on Energy and Clean Air in its report on Thursday.

Greening the steel industry, China’s second largest source of carbon emissions at 15%, is a vital part of the country’s plan to become carbon neutral by 2060. Beijing has been taking measures including curbing crude steel output and promoting cleaner steelmaking technology over the past years. But challenges remain as mills struggle with low margins in a weak economy.

The move to stop permitting coal-based projects could be a turning point in China’s steel decarbonization progress, CREA said. It will keep China on track to cut 200 million tons of carbon dioxide from the steel industry by 2025, a 10% drop from its peak in 2020, said the research organization.

The world’s biggest steel user announced a new 2024-2025 action plan for the sector in May, which sets a 53 million-ton emissions reduction target and restricts exports of low-value iron and steel products.

“As China’s steel demand peaks and more scrap becomes available, it brings us a major opportunity to reduce emissions over the next 10 years,” Xinyi Shen, the lead author, said in the report.

(By Audrey Wan)

Polish miner found alive after more than 48 hours trapped underground

Reuters | July 13, 2024 | 3:35 pm News Europe Coal

Hardhat in a coal mine. (Image from RawPixel, CC0).

A Polish coal miner trapped underground since Thursday was found alive by rescuers on Saturday, local media reported.


The Rydultowy mine in southern Poland, operated by state-controlled group PGG, was hit by a tremor at around 06:00 GMT on Thursday about 1,200 metres (3,960 feet) below ground.

One miner died as a result of the tremor and some 76 were brought to the surface alive by rescuers on Thursday, with 17 taken to hospital.

State-run news channel TVP Info reported that the miner was conscious when rescuers reached him. Private broadcaster RMF FM said a helicopter was at the mine to transport him to hospital.

Most of the miners who went to hospital have now been discharged, TVP Info reported.

(By Alan Charlish; Editing by Mark Potter)

One miner dead after tremor in Poland, one still missing

Reuters | July 11, 2024 | 

Coal mine in Poland (Credit: PGG)

One miner died and one was still trapped underground after a pit in southern Poland was struck by an earth tremor, mine owner PGG said on Thursday evening.


Representatives of the mine said earlier that one of the miners was being brought to the surface without giving any details on his condition.


Some 76 miners had been brought to the surface earlier and 17 had been taken to nearby hospitals with one seriously hurt, PGG CEO Leszek Pietraszek said during a televised news conference in the afternoon.

PGG spokesperson Aleksandra Wysocka-Siembiga earlier said the tremor occurred at around 06:00 GMT about 1,200 metres (3,960 feet) below ground at the Rydultowy mine.

(By Alan Charlish, Anna Wlodarczak-Semczuk and Anna Koper; Editing by Mark Heinrich, David Holmes, Barbara Lewis, David Evans and Sandra Maler)

Column: After another boom and bust, where next for lithium?

CENTRAL PLANNING PERHAPS

Reuters | July 14, 2024 |

(Stock Image)

Lithium boom has turned to lithium bust over the last two years as a wave of new supply overwhelms weaker-than-expected demand for electric vehicle (EV) batteries.


The CME contract for lithium hydroxide has collapsed from a 2022 high of $85,000 per metric ton to $11,930. The CME carbonate contract was above $40,000 when it began trading in July 2023 and has since slumped to $12,850.

Lithium has been here before. There was a similar boom-bust cycle in 2016-2017 but the difference this time is that no-one seems to be expecting a speedy recovery.

The short-term outlook is for prices to trundle along at the lows as the market digests surplus material.

The longer-term picture is more positive as governments force the transition to electric vehicles but there will be no return to the giddy heights of 2022 in the next 10 years, according to analysts at BMI, a Fitch Solutions company.

Don’t be too quick to write off either lithium or the electric vehicle sector, though. The current price bust has been exacerbated by one-offs on both the supply and demand sides of the equation.

CME lithium hyroxide and carbonate prices

Too much supply

Lithium producers view their product as a bespoke chemical tailored to battery-makers’ tight specifications rather than as a generic commodity.

Yet lithium’s price behaviour is that of any other commodity, periods of high pricing encouraging over-production which must then be weeded out by periods of low pricing.

That pattern is currently playing out as producers trim output and defer expansion plans in reaction to the new much lower price reality.

One little-discussed element of the current glut, however, is the surge in artisanal mining (ASM) in Africa, particularly in Nigeria and Zimbabwe.

Research house CRU estimates that artisanal miners accounted for almost two-thirds of African lithium supply in 2023 with volumes nearly equivalent to the global market surplus last year.

African shipments of ore and low-grade concentrates accounted for a quarter of China’s total lithium imports in the first quarter of this year on a metal contained basis, according to CRU.

Chinese entities are heavily involved in formalising artisanal supply which is centred on previous tin and tantalum mining areas.

However, ASM is particularly price sensitive. The current wave of independent production began when the price of spodumene ore was still above $6,000 per ton at the start of 2023. It is now closer to $1,000, challenging the economic viability of all but the richest of deposits.

More formalisation may result but as the cobalt market has learnt, ASM can be a very significant and very fast-moving swing component of the overall supply picture.

Too little demand

Compounding lithium’s price weakness has been a downgrade in expectations for EV sales as the Chinese market matures and the Western market loses some of its recent momentum.

The EV revolution has hit a slow patch but is far from going into reverse. BNP Paribas, for example, is still expecting global sales growth of 23% this year, equivalent to over 18.7 million vehicles.

What has changed, however, is the product mix. Sales of pure battery vehicles are flat-lining, while sales of hybrid gas-electric vehicles are booming, even in China.

Chinese sales of plug-in hybrids jumped by 90% year-on-year in April and May, while those of pure electric vehicles rose by a comparatively modest 10%, according to BNP.

This may be good news for the broader energy transition but it’s not so good for lithium since many hybrids use a nickel hydride battery with no lithium, the bank notes.

Hybrids, once viewed as a mere stepping stone on the journey from internal combustion to fully electric engines are proving remarkably popular with consumers worried about charging infrastructure and the relatively high cost of pure battery vehicles.

Automakers are responding. Stellantis, which saw hybrid sales grow by 41% year-on-year in Europe in the first half of the year, plans to expand its line of affordable hybrid vehicles to 36 models in Europe by 2026.

So too are governments. The Joe Biden administration has rowed back on its target of converting two-thirds of new vehicles to battery electric vehicles by 2032, allowing auto-makers to step up production of hybrids instead.

Full charge ahead

The automotive energy transition is still in full swing but is not matching the exuberant forecasts made a couple of years ago.

There is now too much lithium supply and too much battery capacity relative to consumer demand for electric vehicles.

The slowdown could easily reverse.

One critical facilitator will be the build-out of EV charging infrastructure, a sector which has attracted far less investment than battery manufacturing.

Car buyers in Europe and the United States are choosing hybrids because of range anxiety and they will continue to do so until they see more charging points.

The second key factor is price, with electric vehicles still more expensive than traditional cars everywhere outside of China.

Lithium price surge unlikely to return: Fitch

Just as high lithium prices were good news for producers but not battery-makers, current low prices are bad news for the lithium sector but very good news for consumers in the form of lower battery prices.

Lithium-ion battery packs registered a 7% increase in price between 2021 and 2022, breaking a long-running downtrend, according to the International Energy Agency. High lithium prices were matched by bull markets in other battery inputs such as cobalt, nickel and graphite.

Battery prices are now tumbling as prices for lithium and other materials fall.

The average Asian nickel-cobalt-manganese battery cell price fell to $90 per kilowatt hour in May, according to analysts at Benchmark Mineral Intelligence. That was the lowest since 2021 and a long way off the March 2022 peak of $166.

The seeds of the next lithium upswing are already being sown in the current low-price environment.

It will likely not match the spectacular boom of 2022 but lithium’s history of price volatility isn’t over yet.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Jane Merriman)

Vehicle electrification requires 55% more copper mines by 2050 — report

AND CENTRALIZED GLOBAL PLANNING (WWII)

Staff Writer | July 14, 2024 

View from above of an open-pit copper mine in Peru. Stock image.

Electrification of the global vehicle fleet would require 55% more new copper mines coming online by 2050, the target year for net-zero emissions, according to a recent study published by the International Energy Forum.


Even factoring out energy transition, the world will need to mine at least 115% more copper than has been mined in human history pre-2018 just to meet business-as-usual trends, the report added.

Dr. Lawrence Cathles, an earth and atmospheric sciences professor at Cornell University who co-authored the study, said these findings point to a “disconnect” between the intentions behind decarbonization and the reality of the materials required.
Supply-demand disconnect

In short, the study — led by Dr. Cathles and Dr. Adam Simon, a professor of earth & environmental sciences at the University of Michigan — found that the rate at which the world is producing copper cannot keep pace with the increasing global demand for electric vehicles.

To quantify this disconnect, it gave projections of both supply and demand in a fashion that is unique to prior studies (see below).

(A) Historic and projected mined copper production. (B) Copper mine production requirement scenarios. Credit: IEF

On the supply side, annual mine output is expected to increase by 82% (from 20.4Mt to 37.1Mt) by 2050, and so will the total supply, after accounting additions from copper recycling. However, all production estimates are set to peak around the year 2086 (mine output of 48.7Mt), as shown in Figure A.

On the demand side, the study investigated several decarbonization scenarios and broke down the additional copper production that will be required under each case up until year 2050 (Figure B) .

Evidently, the net-zero scenario displays the largest gap — requiring at least 194 mines or 6 new mines every year. On the other hand, the baseline scenario (business as usual) presents a more realistic challenge of 35 mines — about one per year (see chart below).

Extra copper (relative to 2018) mined between 2018 and 2050 and number of mines that must be put into operation each year over this period to meet electrification demands. Credit: IEF

However, the authors also noted that they have been optimistic in projecting the new mine creation needs. For instance, if copper recycling remains constant at its 2018 level rather than increasing as assumed, then the number of new mines required for baseline demand would be 43.
EV manufacturing goal

Even before reaching the 2050 net-zero target, the goal of 100% EV manufacture by 2035 will still require an unprecedented departure from the copper mining baseline, the report noted.

Historically, it is estimated that excursions from mine production have been around 1 million tonnes per year (in magnitude over about 15 years), and a departure from the baseline related to EV manufacture will be five times greater and twice as long as we have experienced before (5Mt for over 30 years).

Corrected for recycling, this mining excursion is equivalent to a demand gap of 8.1 million tonnes in 2035 and 9.6 million tonnes in 2040, it added.

It is worth noting that the methods used in this study are identical to the one used by M. King Hubbert, who was famous for successfully predicting 30 years of US oil production right up to when technologies such as directional drilling and hydraulic fracturing made it possible to produce natural gas and crude oil from shale and expanded the hydrocarbon resource.

Mining takes time

With increased mining activity, there also comes the question of whether the Earth holds enough resources to support this. The short answer given by the IEF report is yes.

Under the baseline scenario, about 1.69 billion tonnes of copper will be mined by 2050, which represents 26% of the total copper resource of approximately 6.66 billion tonnes estimated by the authors. Their total resource estimate is also close to the 5.6 billion tonne figure given by the USGS.

If mining ever shifts to greater depths in Earth’s crust, the copper resource would grow further to 89 billion tonnes, and 241 billion tonnes may be recoverable from the seafloor.

Hence, there is plenty of copper available. The real concern, then, is whether these resources can be mined fast enough to support baseline global development, and then go beyond towards vehicle electrification.

The study puts that into doubt by pointing out that the new copper mines that came online between 2019 and 2022 took an average of 23 years from the time of a resource discovery for mines to be permitted, built, and put into operation.

“Within this long discovery-to-operation pipeline, we should see at least ten years of prospects (e.g. 17 prospects) with a combined production potential of 8 million tonnes per year in the pipeline to have any confidence we can meet the 1.7 major deposits per year discovery rate required for EV manufacture,” the authors wrote.

Hybrid: An alternative

In light of the findings, the authors of the report suggested hybrid vehicles as a better alternative for balancing the copper demands of electrification and the pressure placed on the mining industry.

“There is remarkably little difference between the amount of copper needed to manufacture hybrid electric rather than ICE vehicles,” they said, highlighting that hybrid electric vehicles require 29 kg of copper compared to 24 kg for an ICE vehicle.

“It would therefore be judicious to aim for a transition to the 100% manufacture of hybrid electric vehicles by 2035, rather than transitioning to the 100% manufacture of battery electric vehicles, which require 60 kg. The copper required for this transition is only slightly above baseline and does not require major grid improvements.”

“This is not a perfect solution, but it is a much more resource realistic one,” they emphasized.

Read the full report here.



Friedland warns of copper ‘crisis’ as mine costs soar

Henry Lazenby - The Northern Miner | July 12, 2024 |

The closing panel at the Rule Symposium. From left: Rick Rule, James Rickards, Albert Lu, Nomi Prins, and Adrian Day. Credit: Henry Lazenby

Miners and analysts gathered this week in a sweaty beach city in southeast Florida to ponder why the industry gets the cold shoulder from most investors.


Copper in particular faces a forecasted supply chasm, mining mogul Robert Friedland told the Rule Symposium via a pre-recorded video interview from Telluride, Colorado.

“The world is suffering from a shortage of copper metal,” the founder and executive co-chair of Ivanhoe Mines (TSX: IVN) said. But copper prices “fall woefully short” of supporting the development of new projects. The current price is around $4.60 per lb.

“We see a crisis coming in physical markets and a requirement for much higher prices to enable most of the copper projects that are in development to have a prayer coming in.”

Humanity would have to mine more copper in the next 20 years than we have in human history to meet surging global demand on the back of the energy transition, Friedland told the conference, organized by resource speculator and founder of Rule Investment Media, Rick Rule.

Meanwhile, the cost of new mines has soared. Friedland said recent copper mine builds in Chile and Peru, jurisdictions once credited for having among the biggest and cheapest copper mines, have seen costs soar to about $45,000 per tonne of daily installed capacity due to inflation, steadily falling grades and dropping output.

While some analysts see near-term respite for soft copper prices, developers need a sustained price gain to make long-term investment decisions. Last week, BMO Capital Markets and Citigroup analysts said copper prices may rise past the $10,000-per-tonne ($4.54 per lb.) mark again in the near term due to a Chinese smelter supply shortage and grid investments in China. Copper posted a record high of $5.11 per lb. In May.

Copper price surpasses $10,000, expected to rise further, says Citigroup

The International Energy Agency projects that copper demand will increase to 36.4 million tonnes by 2040 from 25.9 million tonnes last year, driven by its growing application in clean technology and electric grid expansion. However, analysts have warned for years that copper prices aren’t high enough to support new builds. 

Friedland underlined the critical role of copper in the global economy, given its significance in electrification and renewable energy, and major new demand for modern warfare.

“The global economy needs to find five or six new Kamoa-Kakula-sized projects yearly to maintain a 3% gross domestic product growth rate over the next two decades,” Friedland estimated.

Ivanhoe is doing its part to address the copper deficit challenge with its world-class Kamoa-Kakula copper project in the Democratic Republic of Congo (DRC). The mine is ramping up, producing over 100,000 tonnes of the red metal in the June quarter. The company’s guidance for 2024 is 440,000-480,000 tonnes, with the outlook set to top 600,000 tonnes next year.
Contrarian approach

The current state of the copper market is a consequence of chronic historical underinvestment in production, compounded by increasingly scarce resources, the conference heard.

Symposium host Rule, noted that’s a repeated pattern in natural resources that will continue to lead to more boom-and-bust cycles.

Rule pointed to dramatic increases in commodity prices during the 1970s due to underinvestment: oil prices rose from $2.50 to $30 per barrel., gold from $35 to $850 per oz., and copper from $0.30 to $1.60 per pound.

Drawing parallels to the present, Rule pointed out that the US dollar lost 85% of its purchasing power in the 1970s, a situation he believes is re-emerging due to $6 trillion in quantitative easing in recent years and federal on and off-balance sheet debt of more than $100 trillion.

“Investing in underappreciated sectors presents an opportunity to invest in high-quality companies at a discount,” Rule said.

“The cure for high prices is high prices. The cure for low prices is low prices,” he said, repeating one of his favourite mantras.

Rule stressed the importance of being a contrarian investor, suggesting that attendees look for value in areas where others see risk or disinterest.

He pointed out that generally, the current sentiment around sub-$2 billion market cap mining companies is notably poor, presenting an opportunity to invest in high-quality companies at a discount.

“You can buy the serially successful companies at a small discount to the serial losers. That’s a really good deal if you think about it. The market has been completely undiscriminating with regards to the quality of leadership,” he said.
Commodities rally

The concentration in the US stock markets poses a big risk to economic stability as a small number of issuers are driving most gains, James Rickards of Paradigm said in the closing session at the conference. About 70% of the stocks in the S&P 500 are down for the year despite the index hitting new highs, driven by a handful of tech stocks.

Still, commodities have seen big gains this year, macroeconomist Nomi Prins of PrInsights Global said.

“Gold has rallied 24%, copper 27%, silver 49%, and uranium 60% — indicators of a massive transition regardless of economic ground realities,” she said.

Perhaps preaching to the converted, she noted natural resources have a critical role in future economic stability and growth. “These assets have a tremendously positive trajectory from here, driven by modern geopolitical and energy-related needs.”

CAPITALI$T XAO$

Indonesian onslaught wipes out Australia’s nickel industry

Kristie Batten | July 14, 2024 | 

BHP Leinster airport. Image: Kristie Batten

An influx of cheap nickel supply from Indonesia has all but killed off Western Australia’s long-running nickel sector.


Nickel prices halved in 2023, dipping below $16,000 per tonne in December as surpluses widened.

According to Benchmark Mineral Intelligence, Indonesia accounted for 49% of nickel production in 2023, up from less than 5% just eight years ago.

Nickel sector decimated

The impact on Australia’s nickel industry has been dramatic.

ASX 200 producer IGO paid A$1.1 billion ($744 million) for nickel miner Western Areas in mid-2022. Just 18 months later, the entire value of the acquisition had been written off and the Cosmos development project was suspended, resulting in the loss of 400 jobs.

Wyloo Resources, owned by Fortescue founder Andrew Forrest, paid A$760 million for Kambalda nickel producer Mincor Resources, and just seven months later, announced the suspension of operations.

A spokeswoman for Wyloo confirmed to MINING.COM that a joint feasibility study with IGO into a nickel sulphate plant had been paused.

In April, Canada’s First Quantum Minerals announced it would put its Ravensthorpe nickel laterite operation in WA’s southwest on care and maintenance.

The Savannah mine in WA and Avebury mine in Tasmania were also suspended after owners Panoramic Resources and Mallee Resources, respectively, collapsed.

BHP makes tough call

In February, BHP recorded a non-cash $3.5 billion impairment charge on its Nickel West division and reported negative EBITDA of $200 million, triggering a review into its future.

The worst was confirmed on Thursday when BHP announced it would “temporarily suspend” Nickel West – comprising the Kwinana nickel refinery, Kalgoorlie nickel smelter, Mt Keith and Leinster mines and West Musgrave development – from October.

The Kambalda concentrator, which relied on third-party ore, was suspended earlier this year.

More than 3,000 jobs will be lost though BHP will offer its 1,600 “frontline” employees the choice of redeployment or redundancy.

The decision will be reviewed by February 2027, and BHP has vowed to invest around $300 million per year to support a potential restart.

Once the suspension is complete, Australia will have just three operating nickel mines, IGO’s Nova and Forrestania and Glencore’s Murrin Murrin, though Forrestania and Nova are due to close within the next two years.

Prior to the decision, the Australian government’s Office of the Chief Economist was forecasting Australia’s nickel exports to decline from 161,000 tonnes in the 2023 financial to just 62,000 tonnes in the 2026 financial year.

Long history

Nickel was first discovered in the WA Goldfields in 1966, which led to the establishment of the town of Kambalda by Western Mining Corporation (WMC).

The Kambalda concentrator, Kalgoorlie smelter and Kwinana refinery were in operation by the end of that decade.

BHP acquired WMC in 2006 for $7.3 billion, and was initially extremely profitable, making more money than BHP’s world-class iron ore division in 2007, thanks to a surge in the nickel price to as much as $50,000/t.

The Global Financial Crisis reversed nickel’s fortunes and in 2014, the business was deemed as non-core and put up for sale.

Despite interest from Glencore, the sale was pulled after an acceptable price couldn’t be reached. The more than A$1 billion in closure liabilities and large capital spend required were said to be the sticking points.

Though it remained non-core, Nickel West was surprisingly left out of 2015’s demerger of South32. BHP was still keen to sell the division as recently as 2017 and it was slated for closure in 2019.

Electric era

The rise of electrification changed the outlook for Nickel West and BHP announced it would build a nickel sulphate plant in Kwinana, an industrial area south of Perth, the first and only facility of its kind in Australia.

With Tesla as its foundation customer, the plant produced its first crystals in late 2021.

BHP confirmed it had invested around $3 billion in Nickel West since the 2020 financial year.

Despite the hefty investment, Nickel West had been cashflow negative during that period and was expected to report an underlying EBITDA loss of roughly $300 million in the 12 months to June 30.

“Clearly, it’s not viable to continue operating under these significant and sustained losses,” BHP president Australia Geraldine Slattery told reporters.

The company will record an additional impairment of $300 million in its full-year results in August.

Political fallout

WA premier Roger Cook and federal resources minister Madeleine King both live near the Kwinana refinery and have been watching the review with interest.

At a conference in Perth in May, Cook urged BHP to reflect on the support of the WA government and community before considering “whether they’ll turn their back on WA in relation to the nickel industry”, while King criticized BHP for not investing more in the ageing facilities.

On Thursday, Cook described BHP’s decision as disappointing and pledged to support the workers impacted.

King acknowledged the nickel market conditions were beyond BHP’s control.

“I really am grateful that it’s a temporary suspension and not a more, I suppose, dead-end kind of closure, which would be even a worse situation,” she told local radio on Friday.

‘Devastating’

Kalgoorlie-Boulder, around 600 km inland from Perth, is the largest town in the WA Goldfields with a population of just under 30,000 people.

The City of Kalgoorlie-Boulder released a statement, describing the Nickel West news as “profoundly sad”.

“This decision is devastating, with significant impacts on the livelihoods of our residents and businesses, which will have far-reaching effects across the Goldfields,” it said.

Kambalda is about 60 km from Kalgoorlie and is home to around 2,500 people, while Leinster is a further 300km to the north. Wiluna, which supports the Mt Keith mine, is 585 km north of Kalgoorlie, on the edge of the Western Desert, and has a population of just 240.

Wiluna Shire president Peter Grundy said he was deeply concerned about the community impact.

“While this decision has been coming like a slow train across our red desert landscape, we are still shocked and disappointed by it,” he said.

“There is a knock-on effect with a decision like this – one that may get a small mention in a boardroom, but is as real as an oily, dusty, overdue invoice for some.”

BHP has established a A$20 million community fund though many estimate that won’t be enough.

Hope for Leinster?

Leinster, with a population of just 400 people, is run by BHP Nickel West.

Nickel West asset president Jessica Farrell said the company owned around 280 houses in the town and was hopeful they could be used for those workers supporting the care and maintenance process.

“We would continue to honour, obviously, the obligations of running that town,” she told reporters.

In a positive for the future of Leinster, the 200,000-ounce-per-annum Bellevue gold mine has recently opened and is already talking about expanding, while Liontown Resources’ A$1 billion Kathleen Valley lithium mine is due for firs production within weeks.

Customers and suppliers weigh impacts

Nickel West is also a supplier of sulphuric acid, which is produced as a smelter by-product.

Lynas Rare Earths has a contract with BHP for the supply of sulphuric acid to its Kalgoorlie rare earth facility until mid-2027. Lynas said BHP had affirmed its commitment to supply imported acid to the company.

The suspension of the nickel sulphate plant will impact battery customers including Tesla, Panasonic and Toyota.

IGO is the only remaining supplier of third-party ore to BHP. A spokesman for IGO said the company did not comment on contractual agreements but the closure would have no material impact.

Shares in junior Kambalda nickel explorer Lunnon Metals slumped by more than 12% on Friday to an all-time low. The company said it was considering alternative processing options to Nickel West, including the purchase or lease of the Kambalda concentrator or the development of a new facility.

The decision will also impact contractors and suppliers.

GR Engineering Services said the suspension of West Musgrave would impact its revenue by up to A$80 million in the 2025 financial year, while local airline Alliance Aviation Services, which operates 24 round-trip flights to Nickel West sites per week, reported an EBITDA impact of A$3-5 million per year over the next two financial years.

Other contractors and suppliers are likely to disclose impacts in the coming days.
The end of Australian nickel?

The nickel market is expected to remain in surplus until later this decade. Fastmarkets believes the market is oversupplied by up to 8% of demand.

Slattery said multiple options for Nickel West, including partial curtailment, were considered.

“Ultimately, this was less about the cost of running the business and more about the market outlook and anticipated extension of what is a structural low in the market,” she said.

BHP expects the market to remain in surplus for at least the next three years but was confident of an improvement beyond that timeframe.

“Now, of course, there’s uncertainty with that, but we’ve got sufficient conviction to maintain investment in the option of bringing the Nickel West business back into operation,” Slattery said.

The Nickel West suspension will narrow the nickel surplus but also cement Indonesia’s dominance.
Costly restart

If BHP decides to stick to nickel, it will have to go ‘all in’.

The West Musgrave nickel-copper project, acquired in last year’s A$9.6 billion takeover of OZ Minerals, has a large price tag of A$1.7 billion and is only partially built.

The concentrator, smelter and refinery are all nearly 60 years old and require investment.

In particular, the Kalgoorlie smelter requires a significant upgrade, one that is likely to cost upwards of A$500 million.

The restart will have to compete for capital with other large projects, including a potential new concentrator at the Escondida copper mine in Chile.

Even at full operations, nickel represents a tiny part of BHP’s business – around 1-2%.

(By Kristie Batten)