Monday, August 12, 2024

U.S. Oil Industry Pumps Record Volumes with Fewer Workers

  • The number of upstream and oilfield services jobs is flatlining and has started to fall.
  • The hiring slump is not because production is falling.

  • Efficiency and technological advances in fracking services, as well as the ongoing consolidation in the industry, have been pushing employment numbers lower this year.

While U.S. crude oil production breaks record highs, the number of upstream and oilfield services jobs is flatlining and has started to fall, indicating that America’s oil and gas producers are now “doing more with less” as efficiency and automation in the shale patch are rising.

The oil and gas sector still supports hundreds of thousands of upstream and services jobs and millions of associated jobs in the energy value chain and the hospitality industry.  

However, the post-pandemic rebound in oil and gas hiring—after the 2020 crash and thousands of layoffs—may have run its course.

The hiring slump is not because production is falling. In fact, it continues to rise, although at a slower pace. It’s because the shale firms are now even more focused on efficiencies and cost controls so they can offer higher shareholder returns amid only slight increases in output.

Efficiency and technological advances in fracking services, as well as the ongoing consolidation in the industry, have been pushing employment numbers lower this year.

To be sure, the industry still employs many people directly and indirectly. Sector associations stress the importance of the contribution of oil and gas to the U.S. economy and job numbers.

For example, Midland, Texas, the unofficial capital of the top oil-producing shale play, the Permian, has the lowest unemployment rate in the state of Texas, and lower than the average U.S. unemployment, according to data from the Texas Workforce Commission.

However, oil and gas industry groups note that the sector is now doing more with less, keeping production high with fewer resources.

The U.S. oilfield services sector saw a decline of 2,926 jobs in May, according to data from the Bureau of Labor Statistics (BLS) analyzed by the Energy Workforce & Technology Council.

“While we are beginning to see some signs of a flattening job market within the oilfield services sector, we are also experiencing a continuation of record-breaking U.S. oil and gas production,” Energy Workforce President Molly Determan said in June, commenting on the decline in oilfield services employment.

“It’s clear that we are doing more with less, maintaining high productivity and innovation with fewer resources,” Determan added.

The U.S. Energy Information Administration (EIA) expects U.S. crude oil production to average 13.2 million barrels per day (bpd) this year, up from an average of 12.9 million bpd last year. In 2025, U.S. crude oil production is set to accelerate its growth and hit an average of 13.7 million bpd, per EIA’s latest Short-Term Energy Outlook (STEO) published this week.

Moreover, record Permian production and increased efficiency across the shale patch have prompted many U.S. oil producers to raise their output guidance, which could boost American production above the expectations of limited gains for this year.

U.S. oil production will grow much slower than in the past two years, but efficiency in drilling is driving output even as the number of active rigs falls.

Amid rising production, the latest employment data in the upstream sector in Texas indicates that exploration and production companies are boosting productivity and efficiency without necessarily growing workforce numbers.

In a cautionary note, the Texas Oil & Gas Association (TXOGA) said last month that data from the Texas Workforce Commission indicates upstream oil and gas employment fell again in June, marking 5 out of 6 months this calendar year that the job count has dropped.

“Operational efficiencies are driving strong production with fewer rigs, which can translate to declining industry job numbers,” TXOGA president Todd Staples said.

“Clearly, oil and natural gas companies are delivering more energy with greater efficiency and lower emissions than ever before.”

By Tsvetana Paraskova for Oilprice.com

The Rise of Robotics in the Energy Sector

  • Robots are set to transform the energy industry, with robotics increasingly being used across various energy sectors to improve safety, efficiency, and cost-effectiveness.

  • In the wind energy sector, robots are streamlining maintenance operations and reducing the need for human intervention in hazardous offshore environments.
  • Solar energy companies are utilizing robots for tasks like materials discovery and solar panel installation, accelerating project timelines and reducing costs.

Innovations in robotics have greatly supported energy operations in recent years, with robots now aiding both fossil fuel and renewable energy production. The use of robotics in oil and natural gas operations has made the sector significantly safer, reducing the need for personnel to work in dangerous situations. In addition, it has made it possible to run many energy operations remotely, which was particularly important during the Covid-19 pandemic due to the restriction of movement. Further progress in the development of robotics over the coming decades is expected to help accelerate the green transition, as well as continue to support fossil fuel operations. 

Robotics now play a vital role in a wide range of energy operations, from oil and gas to wind and solar power. During the pandemic, engineers were able to monitor offshore oil operations using robots at a time when movement was restricted around the globe. This helped ensure that the global energy supply was disrupted to a lesser extent. Robots have also been employed to carry out some of the dirtiest and most dangerous activities on oil platforms so that humans don’t have to. Energy companies have become more open to new technologies, such as robotics, artificial intelligence (AI), and machine learning, in recent years, with their function becoming more apparent during the pandemic. Going forward, renewable energy companies are looking for ways to incorporate these technologies into their operations to make activities cheaper, safer, and more efficient, as well as cut costs. 

In the wind energy sector, robots are increasingly being used for equipment maintenance. Previously, energy companies relied heavily on the deployment of large vessels to manage maintenance operations. However, innovations in robotics technology have made it possible for wind turbines to be serviced by robots, which are more precise and efficient in their tasks. This has led to a decrease in the time and resources needed to carry out maintenance and has minimized the potential for error or secondary work. 

In addition to streamlining maintenance, many modern robots are equipped with monitoring and diagnostics technologies that help safeguard turbines before they fall into disrepair. Using robots also reduces the need for physical human intervention in offshore settings as they can often be operated remotely. This makes operations safer and reduces costs. Energy companies are now employing skilled engineers to manage robotics operations remotely or focus on higher-value onshore tasks. 

One of the new technologies being used in the U.K. wind sector is the robotic crawler, which was developed by the British robotics company BladeBUG. The firm created the robot to conduct meticulous inspections of wind turbine blades and other associated components, to make turbine inspections more efficient, accurate, and safer. Another technology being developed for use in the wind energy sector is Honuworx’s subsea robotic system, Ridley. It is a submersible deployment and operations platform for large subsea robots, which is expected to be deployed in place of a large vessel-based subsea system. This reduces the risk associated with crane-based deployments, can be operated remotely, and provides real-time operational data. As the global wind energy sector rapidly expands, there is great potential to develop more innovative robotics technologies to accelerate the rollout of wind farms worldwide. 

In the solar energy sector, robots are being used for a range of activities. In 2023, researchers at Osaka University published a study demonstrating the potential for using an automated system to identify semiconductor materials for use in photovoltaic solar energy, which are highly efficient and have low toxicity. The researchers created “a unique robotic measurement system that's able to perform photoabsorption spectroscopy, optical microscopy, and time-resolved microwave conductivity analyses”. They then used the robot to evaluate 576 different thin-film semiconductor samples. The use of this innovative technology could help scientists discover new materials that can be used in solar panel construction to improve their efficiency. 

Robots are also now being used on solar farms to install solar panels. In the U.S., energy companies complain about the lack of skilled workers required to develop new solar farms at the pace needed to meet the growing demand for solar power. In July, AES Corporation, one of the biggest renewable energy companies in the U.S., introduced a first-of-its-kind robot, which is capable of carrying and installing thousands of solar panels. Maximo, as the robot is known, has a large extendable arm that can pick up solar panels using suction cups and place them neatly into rows using AI and computer vision to ensure the correct placement of the panels. It is thought to be able to install solar panels twice as fast as humans can and at around half the cost.

Greater investment in robotics in the coming years is expected to help accelerate the rollout of renewable energy projects, as well as make them safer and more efficient, and cut costs. This is already taking place in the oil and gas sector and is increasingly being seen in the wind and solar energy industries. As robotics technologies improve, the use of robots will likely become more commonplace across a wide variety of energy operations worldwide. 

By Felicity Bradstock for Oilprice.com

 

Dead fish in creek near Eagle mine likely killed by cyanide, Yukon officials say

Cyanide toxicity in Haggart Creek spiked following water discharge by Victoria Gold last week

A forest stream which apparently shows clear water.
Haggart Creek on June 25. Yukon government officials said Friday that contaminated water discharged by Victoria Gold between July 31 to Aug. 2 is most likely to blame for dozens of dead fish found earlier this week in the creek. (Yukon Government)

Officials with the Yukon government say dozens of dead fish found earlier this week in a creek near Victoria Gold's Eagle mine were likely killed by a discharge of contaminated water from the mine site.

At a briefing on Friday morning, government officials and scientists said Victoria Gold personnel discovered at least 68 dead Arctic grayling and slimy sculpin in Haggart Creek on Aug. 2.

Officials said contaminated water discharged by Victoria Gold between July 31 to Aug. 2 is the most likely culprit. The company has been responding to a major failure that happened in June at its heap leach facility at the Eagle mine, releasing cyanide into the environment.    

Over the weekend, the company was ordered to construct a series of barriers to protect fish, and voluntarily stopped discharging water from the mine treatment plant.

"The death of a large group of fish like that, of multiple species, in a really short period of time is completely consistent with what we would expect from cyanide toxicity," said Dr. Mary Vanderkop, Yukon's chief veterinary officer, at Friday's briefing. 

It's unclear whether the water discharged from the mine site was released deliberately, or whether it had been treated at all. CBC News requested a comment from Victoria Gold but did not receive a response by deadline.

In a July 30 news release, the company said it had "augmented water treatment capacity on site."

Asked by a reporter on Friday whether the discharge of contaminated water was unintentional or unexpected, a government spokesperson said that was "outside the scope" of the briefing. 

Response to 'salvage as many fish as possible' downstream

Following reports of dead fish, Fisheries and Oceans Canada issued a legal order for Victoria Gold to construct seven fish barriers throughout Haggart Creek. 

They were also ordered to "salvage as many fish as possible" downstream, said Yukon Government fisheries biologist Cameron Sinclair on Friday.

Yukon government fisheries biologist Cameron Sinclair and groundwater scientist Brendan Mulligan speak at a Aug. 9 briefing on Eagle mine.
Yukon government fisheries biologist Cameron Sinclair, left, and groundwater scientist Brendan Mulligan speak at a Friday briefing on the Eagle mine. (Jackie Hong/CBC)

Officials hope to establish a "no-go-zone" to help fish to avoid the areas most affected by the discharge event. Sinclair acknowledged that this may disrupt fish migration patterns.

The First Nation of Na-Cho Nyäk Dun has requested a long-term monitoring plan to understand impacts on fish as well as the spread of heavy metals in the environment through other animals such as moose and caribou.

Vanderkop said on Friday the government will be collaborating with the First Nation to put those plans in place.  

"In order to support the testing for these metals, we have put out a request to those that will be harvesting north of Mayo," she said. 

Hunters are being asked to voluntarily submit frozen kidney, liver and jaw bone samples from animals they harvest, to help with long-term surveillance.

While people have been advised against drinking, fishing or recreating in Haggart Creek and immediately downstream, officials said there are no concerns yet around hunting, drinking water, or recreational water use in the McQuesten River. 

A group of caribou frolic in a snowy forest.
Caribou in the Yukon. Na-Cho Nyäk Dun First Nation has requested a long-term monitoring plan to understand impacts on fish as well as the spread of heavy metals in the environment through other animals such as moose and caribou. (Philippe Morin/CBC)

Groundwater samples collected by Victoria Gold at the mine site reveal cyanide concentrations 10,000 times greater than long-term water quality guidelines for the protection of aquatic life. 

Brendan Mulligan, a groundwater scientist with the territorial government, said at Friday's briefing that efforts were being made to contain that water on the site. 

"We do not yet have evidence that impacted groundwater is discharging directly into Haggart Creek," said Mulligan. 

Political response

In early July, Na-Cho Nyäk Dun Chief Dawna Hope called for an immediate halt of all mining activity in the First Nation's traditional territory until a land use plan can be established for the area — a right established in the Umbrella Final Agreement in 1993.

Premier Ranj Pillai said in a statement earlier this week that his government is "committed to advancing regional land use planning ... should they [the First Nation] be ready to proceed."  

Pillai said his government had proposed a series of compromises to the First Nation, including a two-month pause on the issuance of mining licences in the area and a ban on heap leach facilities until an independent review of the Eagle mine failure can be completed.

He also proposed "a prohibition of entry on the staking claims in areas of cultural or environmental significance."

On Wednesday, Yukon NDP Leader Kate White told CBC that promise was "inadequate" and indicative of a "long-term failure" to respect the First Nation's wishes around land use planning. 

"There's a certain amount of irony of having a Yukon government say we're gonna put like a two-month pause on staking and let the Nation identify what's culturally important and environmentally sensitive because … that's land use planning," said White. 

"The First Nation of Na-Cho Nyäk Dun  has been incredibly clear for a lot of years that they want a full moratorium on staking prior to land use planning being completed."

In an interview with CBC, Yukon Party Leader Curry Dixon was also critical of Pillai's comments. He said without any clear regulatory tools in place, Pillai's "verbal commitments" have led to confusion within an industry the territory can't afford to alienate. 

"If we want a truly prosperous and healthy economy that's driven by the private sector, we need to have the mining industry," he said.

"Ultimately, our goal should be that we get that site cleaned up and then the mine returns into production. That would be the the best outcome."

The Collapse of Yukon Mining: The Eagle

Gold Mine Disaster [Victoria Gold]

The Deep Dive

Aug 2, 2024

In this video, we delve into the catastrophic events at the Eagle Gold Mine in the Yukon, operated by Victoria Gold. The slip of the Heap Leach pad on June 24th led to a chain of events that have potentially devastating consequences for the mining industry in the region. We'll explore the immediate impact on the local community, the environmental concerns, and the implications for mining investors. Join us as we uncover the details of this unfolding crisis.

Timestamps:

0:00 - Introduction and Overview

0:54 - The Incident: What Happened?

1:40 - The Aftermath: Damage Assessment

2:26 - Investigations and Blame

3:03 - Victoria Gold's Response

4:03 - Environmental Impact and Cyanide Levels

5:00 - Government and First Nation Reactions

6:29 - The First Nation's Directive

7:53 - Economic Implications for the Region

9:34 - What's Next for Yukon Mining?


Australian court stays govt decision to not renew ERA lease for Jabiluka uranium deposit

12th August 2024
By: Reuters

Australia's Federal Court has stayed a government decision to not renew Rio Tinto-owned Energy Resources of Australia's lease for a high-grade uranium deposit in the Northern Territory, the miner said on Friday.

The proposed development of the Jabiluka uranium deposit in the Northern Territory, which is surrounded by the world heritage-listed Kakadu rainforest, has been strongly opposed by the local Mirarr people.

On the federal government's advice, the Northern Territory government refused to renew ERA's Jabiluka lease last month.

"The matter has been listed for a case management hearing before the court on August 19 to set a timetable for the hearing of ERA's case," ERA said in a statement.

ERA, in which Rio Tinto owns roughly 80%, claimed it was not given an opportunity to present its case before the decision was made.

The uranium miner said earlier this week that it was suing Australia's resources minister and other officials after its lease for the high-grade uranium deposit was not renewed. 

 

BHP launches Indigenous partnership plan in Canada

BHP has strengthened its relationship with Indigenous communities in Canada through the publication of its Canada Indigenous partnership plan (CIPP).

Aligning with its global ambition to “create long-term relationships with Indigenous Peoples, based on trust and mutual benefit”, the CIPP aims to:

  • support the well-being of Indigenous Peoples and their expressed views and ambitions through cultural awareness training, thoughtful social investment and activities
  • develop impactful partnerships with Indigenous-led organisations
  • remain accountable for our publicly stated goals with the support of a new external Indigenous Advisory Circle for Jansen, and appropriate annual reporting for our progress
  • develop plans for delivering on Indigenous employment and procurement targets.

BHP’s CIPP is guided by the United Nations Declaration on the Rights of Indigenous Peoples and will be implemented by an internal team at BHP.

“Through the CIPP we are seeking to incorporate Indigenous methodologies and work in a way that respects physical, mental, emotional, and spiritual interconnectedness,” BHP vice president project potash Simon Thomas said.

“The CIPP aims to foster reciprocal relationships, contribute to social, economic, and environmental outcomes, and support reconciliation through procurement, hiring, and business opportunities.”

BHP’s operational presence in Canada includes the Jansen potash project in Saskatchewanwhich recently saw its Stage 1 construction surpass the 50 per cent mark.

The internal team implementing the CIPP will be supported by a new external Indigenous advisory circle for Jansen comprising community leaders, cultural advisors, experts in Indigenous rights, legal professionals, environmental consultants, and representatives from various Indigenous communities.

The CIPP’s progress will be reported annually.

“BHP’s approach centres on listening to Indigenous voices, building respectful and lasting relationships through consultation, engagement, and shared goals,” BHP asset president potash Karina Gistelinck said.

“The plan reflects input from Indigenous partners and emphasises continuous learning and adaptation. Our team is committed to transparency, accountability, and working collaboratively to achieve mutually beneficial outcomes for Indigenous communities and the company.”

Arizona Lithium produces Saskatchewan’s first kilogram of battery-grade LCE

Staff Writer | August 11, 2024 |

The Prairie Lithium project is in the heart of Saskatchewan’s resource-rich Williston Basin(Image courtesy of Arizona Lithium.)

Arizona Lithium (ASX: AZL) this week achieved a significant milestone with the production of its first battery-grade lithium carbonate at its Prairie project in Saskatchewan. The product was verified by Vancouver-based Saltworks Technology, which specializes in treating wastewater and refining lithium.


This represents the first kilogram of lithium ever mined in the Canadian province, government officials confirmed during an announcement introducing two new critical minerals incentive programs worth $500 million.

The lithium carbonate was produced from the DLE (direct lithium extraction) eluent of the ILiad pilot that operated at the Prairie project from November 2023 to February 2024. The DLE eluent was sent to Saltworks’ facility in British Columbia, where it was converted into battery-grade material.
Sample of the battery-grade lithium carbonate produced. Credit: Arizona Lithium

“Producing battery grade lithium carbonate from our flowsheet is an important step in showing the market the quality of product that we can produce,” Arizona Lithium managing director Paul Lloyd stated in an August 6 press release.

“The battery-grade product we produced is in sufficient quantities to go out to all the offtakers and strategic partners we are in conversation with,” he added.

The Prairie project is home to a large brine resource located in the heart of Saskatchewan’s Williston Basin, within a region historically known for its oil production. The resource is estimated at 6.3 million tonnes in lithium carbonate equivalent (LCE), comprising 4.8 million indicated and 1.5 million inferred.

Based on a December 2023 preliminary feasibility study, the Prairie project would have a mine life of 20 years, averaging 6,000 tonnes of LCE production per annum. Its after-tax net present value (at 8% discount rate) is estimated at $312 million, with an internal rate of return of 20.4% and 2.2-year payback.

The project utilizes conventional oil and gas drilling methods to access the lithium-rich brine from aquifers about 2.3 km underground. DLE technology is used to separate lithium from the brine, and the extracted lithium concentrate is then converted onsite to an upgraded high-purity material.

The first phase of production drilling at Prairie began in May 2024, starting with three pads, each independent of one another with a target annual production of 2,000 tonnes of LCE. Two of the pads have already been constructed. The first commercial production well was drilled on Pad #1.

In the near term, the Australia-based lithium developer is aiming to bring Pad #1 at the Prairie project into production by 2025 while it advances its other core asset, the 100%-owned Big Sandy lithium project in Arizona.
Chinese mining firm files judicial review against Ottawa

Reuters | August 11, 2024 | 

The La Arena open-pit gold mine. (Image courtesy of Tahoe Resources.)

Jinteng Mining, a subsidiary of Chinese gold and copper company Zijin Mining Group, has sought a judicial review against Canada’s decision regarding a Canadian company’s sale of a gold mine in Peru, the Canadian Press reported on Sunday.


Jinteng bought Pan American Silver Corp’s gold asset in Peru in May for $245 million with an option of additional payment of $50 million. The Canadian Press reported that the judicial review was against Minister Francois-Philippe Champagne’s order seeking a national security review for the deal, which Reuters was unable to independently verify.

A case filed in the Federal Court of Canada which was viewed by Reuters showed that Jinteng (Singapore) Mining filed a judicial review in late July under section 18.1 of the Federal Courts Act naming the Attorney General of Canada and the Minister of Innovation Science and Industry as parties to the case.

Jinteng is represented by law firm Gowling WLG LLP, according to court documents.

The law firm representing Jinteng and Canada’s industry minister’s office did not respond to email queries.

Section 18.1 under Canadian law provides a legal recourse for any party affected by a federal order, allowing them to seek a review within 30 days after the decision.

The judicial review by Zijin could be a test case on how other Canadian companies approach their deal making with regards to Chinese investments.

Ottawa has taken a tough stance against investments by state-owned Chinese companies in Canada’s critical minerals sector.

Since 2022 Canada has asked Chinese investors in Canadian graphite, lithium and copper company to divest their holding even though the mining assets of these companies were outside of Canada, due to national security issues. But Chinese investors have continued their interest in Canadian mining companies.

The Canadian government has identified 31 minerals, including copper, lithium and nickel, that it considers critical for their strategic uses in modern technology and the energy transition, such as in electric vehicle batteries. Gold is not considered a critical mineral.

In July, the country’s industry minister Francois-Philippe Champagne said the country will have a high bar for approving large M&A deals in critical minerals and said any deals involving major Canadian miners will be approved “under exceptional circumstances”.

(By Divya Rajagopal; Editing by Josie Kao)

Zambia closes border with Congo, blocking key copper trade route

The move follows protests in Congo that flared after the government of that country banned certain beverage imports from Zambia

Bloomberg News | August 11, 2024 | 

The Mutanda copper-cobalt mine, Democratic Republic of the Congo. Source: YouTube

Zambia has temporarily shut its borders with the Democratic Republic of Congo, the government said at the weekend, in a move that could delay exports from Africa’s biggest copper producer.


“We have decided to take precautions that we seal the borders for now,” Chipoka Mulenga, Zambia’s Minister of Commerce, Trade and Industry, said in comments broadcast over state-owned ZNBC Saturday night. “We may start experiencing a build-up of trucks.”

The move follows protests in Congo that flared after the government of that country banned certain beverage imports from Zambia, ZNBC reported. Mulenga didn’t provide a time-frame on how long the government will keep the border closed.

Most of Congo’s copper travels through Zambia to reach regional ports.

(By Matthew Hill)

Russia asks Niger to help as geologists taken hostage

Bloomberg News | August 9, 2024 |


Stock image.

Russia asked the authorities in Niger to help with information after two geologists were apparently taken hostage in the West African country, RIA Novosti reported.


The two employees of an unidentified Russian company came under attack by militants in July, while they were exploring for mineral resources, according to the news service.

A video showing the geologists, one a Russian citizen and the other from Ukraine, as hostages appeared on Aug. 2, RIA Novosti reported Friday, citing Foreign Ministry spokeswoman Maria Zakharova.

Niger has forged closer ties with Russia since a coup in the African nation last year, paving the way for Moscow to seek access to mining interests in the country.

Sunday, August 11, 2024

Mining companies strengthen their commitment to respect the rights of Indigenous Peoples



ICMM CEO and president Rohitesh Dhawan


8th August 2024
By: Sabrina Jardim
Creamer Media Online Writer


Ahead of the International Day of the World’s Indigenous Peoples, on August 9, mining industry organisation the ICMM’s members have reaffirmed their commitment to respect the rights of Indigenous Peoples, recognising their importance as partners in the development of mining projects on their lands and territories.

The ICMM’s updated Indigenous Peoples and Mining Position Statement includes commitments to obtain agreement from Indigenous Peoples on anticipated impacts to their rights from ICMM members’ activities, identified through human rights due diligence and early and meaningful engagement.


The ICMM says these processes reflect a company’s responsibility to respect Indigenous Peoples’ rights, independent of the State’s obligation to obtain the free, prior and informed consent of Indigenous Peoples prior to the approval of projects affecting their lands, territories and resources.

It also sets out what companies will do if agreement cannot be reached and States have granted permission for projects to proceed. The ICMM says this comes at a critical time in the world’s energy transition, with an estimated 54% of critical mineral mining projects located on or near Indigenous lands.


It is also set against the backdrop of increasing challenges to Indigenous Peoples’ rights and ways of life from a variety of sources including climate change, nature loss and wider industrial development including mining.

The ICMM says the revised position statement has been developed over more than two years with extensive engagement with Indigenous Peoples’ representatives, human rights and legal experts, and with significant input from ICMM members’ subject matter experts and leaders. Their inputs have helped to inform and strengthen the nine commitments detailed in the position statement.

ICMM CEO and president Rohitesh Dhawan says these important commitments reinforce the ICMM’s dedication to respecting Indigenous Peoples’ rights, participating in meaningful engagement, and supporting the fair and equitable participation of Indigenous Peoples in the development of mining projects on their lands and territories.

“With these revisions, we hope to provide much-needed clarity on the role of companies, alongside States, to contribute to the free, prior and informed consent of Indigenous Peoples in decisions that affect them.

“Alongside many positive examples of respectful and enduring partnerships that have advanced social and economic development of Indigenous Peoples, we recognise that in some instances, mining activities have harmed their rights.

“We will continue to reflect on how we can better develop, operate and close mines in ways that enhance our critical relationships with Indigenous Peoples and contribute to aligned development aspirations, and respects Indigenous Peoples' right to participate in decision-making on matters that will affect them,” he says.

“The updated Indigenous Peoples and Mining Position Statement brings significantly more rigour to the expectations of ICMM member companies in how we, the mining industry, engage, understand and respect the rights of Indigenous Peoples.

“These commitments serve as the foundations of lasting relationships built on transparency, trust and mutual benefit,” adds Newmont CEO and ICMM social performance council advisory group chair Tom Palmer.

Business and human rights legal expert Jonathan Drimmer says the standards relating to Indigenous Peoples are changing, and there is now greater recognition of their rights and what free, prior and informed consent really entails.

“ICMM’s Position Statement helps solidify current best practices even against this evolving landscape. It helps companies to understand what activities they should be undertaking and stakeholders to understand how they should be evaluating these activities,” says Drimmer.

Edited by Chanel de Bruyn

Creamer Media Senior Deputy Editor Online

Leading indigenous networks submit commentary for the ongoing review of the ICMM position statement

"Comments for the review of the Indigenous Peoples & Mining Position Statement of the International Council on Mining and Metals (ICMM)" 19th June, 2024

Asia Indigenous Peoples Network on Extractive Industries and Energy (AIPNEE) and Right Energy Partnership with Indigenous Peoples (REP) jointly submit this commentary for the ongoing review of the Indigenous Peoples & Mining Position Statement of the International Council on Mining and Metals (ICMM), including with reference to draft of the Position Statement shared by the ICMM on 4 June 2024...

We at AIPNEE and REP convey our serious concerns that the ICMM has not undertaken meaningful and broad consultations with Indigenous Peoples’ representatives from around the world for the review of the Position Statement....

That is despite our repeated requests to the ICMM to 1) organize targeted consultations with Indigenous Peoples... and 2) carry out a publicly transparent and time bound review process with information provided about how Indigenous Peoples and other stakeholders can engage at various points...

Below, we lay out our key concerns with draft of the Position Statement...

  1. Free, Prior and Informed Consent (FPIC) – Our foremost concern is that the draft Policy Statement, under Commitment 4, fails to recognize Indigenous Peoples right to FPIC...
  2. Benefit sharing... We call on the ICMM to commit its members to benefit sharing in the form of royalties and/or co-owernship for the affected Indigenous Peoples to ensure shared prosperity from their project or activity...
  3. We call on ICMM members to specifically involve those subsets of Indigenous communities in more vulnerable situations in the the decision making process of the communities...

We hope that the ICMM will amend the draft Position Statement as per our comments and revisions and in line with international human rights laws and standards. We stress that the draft Position Statement in its current form is unacceptable unless the problematic commitments related to FPIC and other issues are revised....

Rio Tinto’s Serbia lithium mine project faces fresh protests

Bloomberg News | August 10, 2024 

Widespread protests in Serbia cost Rio Tinto  its Jadar lithium project.
 (Screenshot from: Sharjah24 News | YouTube.)

Tens of thousands of environmental and opposition activists protested in Belgrade to demand a halt to Rio Tinto Group’s $2.4 billion plan to open Europe’s biggest lithium mine in Serbia.


Demonstrators marched through the capital chanting “You will not dig” and “Treason, treason,” the latest sign of unrest against a project backed by President Aleksandar Vucic. The crowd swelled to about 40,000 by Saturday evening, according to Archive of Public Gatherings, a private group that tracks protests.

The troubles highlight the challenges to building new mines in Europe, even as governments try to secure supplies of minerals such as lithium that are crucial for the energy transition. For the world’s second-largest miner, the Serbian mine has become a flagship development projects as it looks to dilute its dependence on iron ore.

The project was halted in 2022 to defuse protests by environmental activists concerned that mining and processing lithium, a metal vital for battery production, would cause pollution. Serbia’s top court lifted the ban in July.

Saturday’s rally followed more than a dozen smaller protests across Serbia.

Vucic’s administration has touted the project as a boost to the economy. Finance Minister Sinisa Mali has said that lithium mining, if complemented by local production of batteries and electric vehicles, could add as much as €12 billion ($13 billion) annually to Serbia’s economic output.

Last month, Serbian and EU officials signed an agreement on providing supplies of critical raw materials across the bloc, with a focus on lithium. Mercedes Benz AG chief executive officer Ola Kaellenius and Stellantis NV representatives also signed a letter of intent to invest in developing EV battery outputs.

The activists dismiss assurances from the government that the mine would adhere to strict environmental standards.

(By Misha Savic and Jan Bratanic)