It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, December 19, 2024
International
Companies That Spent Billions on M&A Are Now Selling for Peanuts
By Ben Scent
December 19, 2024 at 12:00AM EST
Richard Betsalel, managing director of Crosbie & Company Inc., says the future landscape of the Canadian mergers and acquisitions market looks promising.
(Bloomberg) -- Companies that spent billions on poorly timed acquisitions in recent years are now offloading those assets at knockdown prices.
Alibaba Group Holding Ltd. announced Tuesday it’s going to sell Chinese department-store chain Intime to a local apparel group for $1 billion. The price is around 30% of the company’s valuation when Alibaba bought it during the heady days of 2017. The internet giant, which has largely abandoned its acquisitive ways amid government pressure, said it will book a $1.3 billion loss on the transaction.
The deal came a day after BlackBerry Ltd. said it would divest its Cylance endpoint security unit to software startup Arctic Wolf for $160 million plus a small amount of stock. That’s a far cry from the $1.4 billion BlackBerry paid when it agreed to buy the business in 2018. Under BlackBerry’s ownership, Cylance reported substantial losses and its revenue fell over 50%, according to Royal Bank of Canada analysts.
The moves show how companies that were major acquirers during the boom times may sober up and regret those purchases only a few years later. Just last month, Just Eat Takeaway.com NV agreed to sell US food delivery service Grubhub for $650 million, a roughly 90% discount to the price it paid to buy the business at the height of the Covid pandemic.
Overpayment was the inevitable byproduct of an era when competition for assets was fierce, according to Oliver Scharping, a portfolio manager at Berenberg.
“Years of zero interest rates and pandemic-fueled deal hysteria sent valuations soaring in hype sectors, often detached from fundamentals,” Scharping said. “Now, as the zeitgeist demands a sober look in the mirror, companies are trimming excess, dumping underperformers, and opting for brutal honesty over sunk-cost fantasy — even if it means a multibillion-dollar haircut.”
Valeriya Vitkova, a senior lecturer at City University of London’s Bayes Business School, said that companies didn’t properly assess synergies and the expected benefits of some deals were overestimated.
Now may be a good time to find buyers for these assets as the M&A market has become active again, Vitkova said. Overall M&A volumes have risen 16% this year to $3.2 trillion, according to data compiled by Bloomberg, and bankers expect the pace to pick up next year.
These divestments allow the companies to focus on shoring up their main operations at a pivotal time. Alibaba has been working to reignite growth in its Chinese e-commerce division, where it faces fierce competition from PDD Holdings Inc. and ByteDance Ltd. Meanwhile, BlackBerry Chief Executive Officer John Giamatteo is trying to turn around the company by devoting more attention to its Internet of Things business as well as its secure communications platforms.
Reopening the Gates
A representative for Just Eat Takeaway said the market has changed since it bought Grubhub, with competition increasing and sector valuations falling. The sale to Wonder Group Inc. represents the “most attractive outcome” and “reflects the current trajectory of the business,” the representative said. Alibaba didn’t immediately respond to queries.
A spokesperson for BlackBerry said it’s “incredibly pleased” with the outcome for Cylance, which will help profitability and let it focus on the growth engines in its portfolio. Investors seem happy too, with BlackBerry shares jumping 15% the day the deal was announced, the biggest gain since August 2023.
Companies will continue to pursue divestments of acquisitions that didn’t work out, as markets are rewarding focus and punishing bloated firms, Berenberg’s Scharping said. That could provide good opportunities for cash-rich corporate buyers looking for bargains, as well as private equity firms that Bloomberg-compiled data show are sitting on $1.6 trillion of dry powder.
“The pricing reset has reopened the gates for disciplined buyers to act,” Scharping said. “We’re seeing opportunists leverage cleaner balance sheets and tighter focus to pick up discounted assets with long-term upside.”
--With assistance from James Boxell, Luz Ding, Amy Thomson, Monique Mulima, Adam Blenford and Aaron Kirchfeld.
(Updates with BlackBerry share jump in 11th paragraph.)
Drive to Dump Trudeau Has Momentum, Liberal Lawmaker Says
WON'T MATTER LIBERALS ARE TOAST
By Laura Dhillon Kane
December 18, 2024
Former finance minister Joe Oliver reacts to the political turmoil in Trudeau's cabinet and what economic impact this could have on Canadians.
(Bloomberg) -- Justin Trudeau’s political crisis is deepening, with more members of his Liberal Party publicly calling for the Canadian prime minister to step aside and give a new leader a chance before an election in 2025.
Jenica Atwin, a Liberal who serves as parliamentary secretary to a cabinet minister, told a newspaper in her home province of New Brunswick that Trudeau should leave and that she won’t run for reelection if he stays.
Chad Collins, an Ontario member of parliament, said that around 50 elected Liberals — perhaps more — are part of a growing group that wants the prime minister’s resignation. Other Liberals in the anti-Trudeau camp have given similar numbers. That would be about a third of the 153-person Liberal contingent in the House of Commons.
Monday’s resignation of Chrystia Freeland, Trudeau’s powerful finance minister and his longtime deputy, was a massive shock that has irreparably damaged the prime minister, Collins said in an interview.
Freeland said she quit after being told she would be moved to a different role in the cabinet. Trudeau delivered that news on Friday, she said — just three days before she was due for a major speech that would update the country on its fiscal and economic situation.
“I don’t know who’s giving him advice. I can guess. It’s not good advice,” Collins said. “But the buck stops with him with the decisions he makes, and we’re now seeing the fallout that’s come with what many would consider a very poor decision.”
“In terms of who the successor is, I don’t know at this point whether or not we could do much worse,” he said.
The 52-year-old Trudeau has been under pressure to leave for months. In June, the Liberals lost a special election in a Toronto district that they had held for decades. In September, they lost a seat in Montreal in similar fashion. Soon after, about two dozen Liberal lawmakers signed a letter asking him to go.
But Freeland’s resignation — coming at a time when Canada’s economy faces the threat of tariffs from the incoming Trump administration — has turned bubbling discontent into a full-scale crisis for Trudeau. The prime minister has canceled all of his usual year-end television interviews and said almost nothing publicly since Freeland quit, other than some brief comments at two Liberal events.
“This isn’t just about one man — it’s about saving our party from a historic defeat,” Wayne Long, another Liberal member of parliament from New Brunswick, wrote in an open letter on Wednesday. Polls suggest the Conservative Party, led by Pierre Poilievre, is on course to win a majority government in the next election.
More Liberals will step away from politics if Trudeau tries to stick around, Collins warned. “I think the risk he runs is that he’ll have a skeleton crew of experienced elected representatives.”
OTTAWA — Canada Post is set to start accepting commercial letters and parcels as it works to get back to normal operations following a month-long strike.
Canada Post said mail is being processed on a first-in, first-out basis, and it will start accepting new international mail on Dec. 23.
More than 55,000 employees were ordered back to work by the Canada Industrial Relations Board after it determined a deal could not be reached before the end of the year.
The Crown corporation and the Canadian Union of Postal Workers had been deadlocked in negotiations, with federal mediation on pause as key issues like wages and weekend expansion seemed to see no movement.
Now, the government has appointed an industrial inquiry commission to come up with recommendations by May 15 on how a new agreement can be reached, while the existing contracts have been extended to May 22.
This report by The Canadian Press was first published Dec. 19, 2024.
Electric bus maker Lion Electric granted creditor protection by Quebec court
MONTREAL — The Lion Electric Co. says it has been granted protection from creditors under the Companies' Creditors Arrangement Act by the Superior Court of Quebec.
The electric bus maker says it plans to seek recognition of the CCAA proceedings in the U.S. under Chapter 15 of the Bankruptcy Code.
Deloitte Restructuring Inc. has been appointed as monitor to oversee the restructuring efforts at the company.
Lion Electric says the court also issued an order approving a sale and investment solicitation process.
The company sought court protection from creditors after it said Monday that it had defaulted on its debt.
The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.
This report by The Canadian Press was first published Dec. 19, 2024.
US private fusion company Commonwealth Fusion Systems has announced plans to independently finance, construct, own and operate a commercial-scale fusion power plant in Chesterfield County, Virginia.
A rendering of the ARC fusion power plant (Image: CFS)
Commonwealth Fusion Systems (CFS) - a Massachusetts Institute of Technology (MIT) spinout company - said it has reached an agreement with Dominion Energy Virginia to provide non-financial collaboration, including development and technical expertise as well as leasing rights for the proposed site at the James River Industrial Park. Dominion Energy Virginia currently owns the proposed site.
CFS said it conducted a global search for the site of its first commercial fusion power plant, known as ARC.
"This is a historic moment," said CFS co-founder and CEO Bob Mumgaard. "In the early 2030s, all eyes will be on the Richmond region and more specifically Chesterfield County, Virginia, as the birthplace of commercial fusion energy. Virginia emerged as a strong partner as they look to implement innovative solutions for both reliable electricity and clean forms of power. We are pleased to collaborate with Dominion Energy."
Dominion Energy Virginia President Edward Baine said: "Commonwealth Fusion Systems is the clear industry leader in advancing the exciting energy potential of fusion. Our customers' growing needs for reliable, carbon-free power benefits from as diverse a menu of power generation options as possible, and in that spirit, we are delighted to assist CFS in their efforts."
CFS is currently working to build the SPARC prototype fusion machine at its headquarters in Devens, Massachusetts. It is described as a compact, high-field, net fusion energy device that would be the size of existing mid-sized fusion devices, but with a much stronger magnetic field. It is predicted to produce 50-100 MW of fusion power, achieving fusion gain greater than 10.
SPARC will pave the way for a first commercially viable fusion power plant called ARC, which will generate about 400 MWe - enough to power large industrial sites or about 150,000 homes. ARC is expected to deliver power to the grid in the early 2030s.
Since CFS's founding in 2017, it has collaborated with researchers in MIT's Plasma Science and Fusion Center (PFSC) on a range of initiatives, from validating the underlying plasma physics for the first demonstration machine to breaking records with a new kind of magnet to be used in commercial fusion power plants.
"This will be a watershed moment for fusion," said CFS co-founder Dennis Whyte, the Hitachi America Professor of Engineering at MIT. "It sets the pace in the race toward commercial fusion power plants. The ambition is to build thousands of these power plants and to change the world."
Westinghouse, Aecon team up for nuclear new build projects
Thursday, 19 December 2024
Westinghouse Electric Company and Canadian construction company Aecon have announced the signing of two agreements, creating a collaborative framework for the development and deployment of advanced nuclear new-build projects in Canada and around the world.
NON DEI BOARD
The signing of the agreements (Image: Aecon)
Under a strategic cooperation agreement, Westinghouse and Aecon will work together on opportunities for the construction of AP1000 power plants in markets throughout Canada. Meanwhile, under a memorandum of understanding (MoU), Aecon can build on its experience of supplying AP1000 modules and nuclear components for the Vogtle plant in Georgia, USA, and other projects to potentially expand the supply of key AP1000 and advanced nuclear reactor components to projects in Canada and abroad.
Leveraging its fabrication and modularisation facility in Cambridge, Ontario, Aecon previously provided fabrication services of critical nuclear class AP1000 modules for the Vogtle unit 3 and 4 project, and on-site specialised welding services.
Headquartered in Ontario, Aecon is a North American construction and infrastructure development company and is a Tier 1 Canadian constructor with significant nuclear experience. Westinghouse said Aecon will support its advanced nuclear technologies to "provide a way to quickly deploy significant new nuclear to meet economic, environmental and energy security needs in Canada and globally".
"With extensive nuclear EPC expertise, strong technical knowledge, as well as specialised nuclear fabrication and manufacturing solutions tailored to meet the stringent demands of the North American nuclear power industry, Aecon is at the forefront of delivering nuclear infrastructure," said Aecon Nuclear Senior Vice President Aaron Johnson. "We are proud of our role in advancing the energy transition to help ensure the supply of clean, reliable and affordable electricity for generations to come. We look forward to collaborating with Westinghouse through these framework agreements as we continue supporting our clients in their technology selection and deployment."
Westinghouse Energy Systems President Dan Lipman said: "By partnering with Aecon, we are underscoring our commitment to helping to ensure that nuclear new-build projects of all scales will benefit the Canadian economy by employing local trades and creating jobs in Canada. For each four-unit AP1000 project Westinghouse builds in Canada, we expect to create nearly 8000 Canadian jobs during construction and another 12,000 full-time jobs for ongoing operations."
"With Canada's urgent need to bring more nuclear generation online to meet its objectives, the proven, fully operational AP1000 reactor becomes the natural choice because it can be deployed now," said John Gorman, president of Westinghouse Canada. "Today's agreement with Aecon further strengthens Westinghouse's construction and supplier relationships across Canada with an experienced AP1000 project partner to ensure it can move quickly to meet the nation's requirements."
Westinghouse - now owned by Canada's Brookfield and Cameco - noted the agreements with Aecon are the latest in a series of agreements with Canadian firms "that provide opportunities for expansion and diversification by supporting Westinghouse's advanced nuclear technologies globally".
Earlier this month, Westinghouse signed an MoU with BWXT Canada for the potential manufacture of key AP1000 and AP300 reactor components, including steam generators, reactor vessels, pressure vessels and heat exchangers.
In October, Westinghouse and Vancouver-based shipbuilding firm Seaspan ULC announced they had signed an MoU to support nuclear new-build projects in Canada and around the world. Under the agreement, Seaspan has the potential to manufacture key AP1000 and AP300 reactor components, including pipe spools and steel structures.
Westinghouse opened a new global engineering hub in Kitchener, Ontario, in June this year to support its growing Candu and global new-build business. Canada, it said, is now the third largest engineering centre for the AP1000.
In February, Westinghouse released a comprehensive, independent report from PricewaterhouseCoopers outlining the significant economic impact from deploying four AP1000 reactors in Ontario. Their deployment could have an impact of more than CAD28.7 billion (USD20 billion) on Canada's GDP during the manufacturing, engineering and construction phase alone, the study found.
KHNP, Candu Energy and Ansaldo Nucleare sign Cernavoda 1 refurb deal
Thursday, 19 December 2024
Romania's Nuclearelectrica has ceremonially signed the engineering, procurement and construction contract for the estimated EUR1.9 billion (USD1.97 billion) refurbishment of Cernavoda unit 1 with a consortium of Korea Hydro & Nuclear Power, AtkinsRealis's Candu Energy, Canadian Commercial Corporation and Ansaldo Nucleare.
The engineering, procurement and construction (EPC) contract covers the development of the detailed design, procurement of equipment and materials, execution of retubing works and refurbishment works as well as construction of the necessary infrastructure. Its entry into force is subject to the approval of Nuclearelectrica's shareholders (it is 82.49% state-owned) and the approval of the Canadian government.
Candu units are pressurised heavy water reactors designed to operate for 30 years, with a further 30 years available subject to refurbishment. This includes the replacement of key reactor components such as steam generators, pressure tubes, calandria tubes and feeder tubes. It involves removing all the reactor's fuel and heavy water and isolating it from the rest of the power station before it is dismantled. Thousands of components, including those that are not accessible when the reactor is assembled, are inspected, and all 480 fuel channels and 960 feeder tubes are replaced during the high-precision rebuild.
Cernavoda is the only nuclear power plant in Romania and consists of two 650 MWe Candu reactors. Unit 1 went into commercial operation in 1996 and unit 2 in 2007. Most of the work on units 3 and 4 - like units 1 and 2, Candu-6 reactors - was done in the 1980s prior to the fall of the government of Nicolae Ceausescu in 1989. Work is now on-going to construct units 3 and 4, with scheduled commercial operation in 2030 and 2031.
The unit 1 refurbishment project began in 2017 and is currently in the second of three phases. This phase, due to last from February 2022 to 2026, covers providing the financial resources, negotiating and granting engineering, procurement and construction contracts, assessing, preparing and scheduling the activities to be carried out and obtaining all the authorisations and approvals necessary to start the project. The third phase, scheduled for 2027 to 2029, starts with the shutdown of unit 1 and includes all the work required on it and its recommissioning.
Cosmin Ghita, Nuclearelectrica CEO, said: "The goal for Cernavoda NPP unit 1 refurbishment is to ensure the operation of the unit for another life cycle in conditions of safety and economic efficiency ... carried out according to standards of excellence and the international experience gained from the refurbishment of the other Candu nuclear units worldwide. This is a key project which will extend unit 1’s operational life by 30 years to support Romania’s decarbonisation goals by avoiding an additional 5 million tonnes of CO2 emissions annually. We are keen to work with internationally renowned partners which have historically contributed to the current operational performance of Cernavoda units 1 and 2."
Candu Energy, the original supplier of the reactor technology for Cernavoda unit 1, and Ansaldo Nucleare will lead the engineering and procurement aspects of the Nuclear Steam Plant and Balance of Plant, respectively. KHNP said it would oversee the entire execution process including replacement of major components, and the construction of main infrastructure such as a radioactive waste storage facility. KHNP’s share of the project amounts to approximately EUR840 million. KHNP will work alongside key domestic partners, including KEPCO KPS, Doosan Enerbility, Hyundai E&C and Samsung C&T.
Joe St Julian, President, Nuclear, at AtkinsRealis, said: "The last seven Candu reactors built around the world, and the ongoing life extension of 10 Candu reactors in Ontario, have been conducted on time and on budget. As the only organisation that has taken a leading role in every Candu reactor life extension project to date globally, our unmatched track record of executing on schedule, cost, safety, and quality performance, along with the expertise of our top-tier, proven consortium partners, will deliver this project for Romania at and above their expectations."
Whang Joo-ho, President and CEO of KHNP, said: "This achievement reaffirms the global recognition of KHNP’s operation and maintenance expertise, cultivated over five decades. Through the successful completion of the Cernavoda unit 1 refurbishment project, we will further strengthen KHNP’s global presence."
Daniela Gentile, CEO of Ansaldo Nucleare, said the signing of the contract "reaffirms the enduring trust that Nuclearelectrica has consistently placed in us and our partners, endorsing our expertise. This achievement not only strengthens our partnership with Nuclearelectrica but also, following the signing of the EPCM contract for Cernavoda units 3 and 4 during COP29 in Baku, further consolidates Ansaldo Nucleare’s presence in Romania”.
Bobby Kwon, President and CEO of Canadian Commerical Corporation (CCC), said: "CCC appreciates the confidence that Romania has demonstrated to-date in Canadian nuclear technology and is pleased to facilitate this important project that will ensure Romanians continue to have access to emission-free energy and helps realise Romania’s potential as a regional hub for clean electricity in Eastern Europe."
Joint venture planned for commercialisation of Newcleo SMR
Thursday, 19 December 2024
France-based innovative reactor developer Newcleo is to create a joint venture with Italy's NextChem to develop a new generation commercial-scale power plant, based on Newcleo's LFR-AS-200 small modular lead-cooled fast reactor.
A cutaway of Newcleo's reactor design (Image: Newcleo)
According to an agreement signed with NextChem's parent company - Italian technology and engineering group Maire SpA - upon execution of binding agreements Newcleo will take a 40% stake in NextChem's newly incorporated company focused on creating new intellectual property and performing technical services.
The deal will result in NextChem being granted newly issued shares up to 5% of Newcleo's share capital at pre-money valuation, subject to the achievement of certain milestones - the first of which is Newcleo's entrance into the joint venture company, and the last being linked to the final investment decision by the first client.
The transaction is expected to be finalised by the end of February 2025.
Under the agreement, NextChem will contribute skills, management and engineering competences and tools to the joint venture, as well as a dedicated commercial platform for the deployment of LFR-AS-200 projects.
Newcleo will develop the nuclear reactor for its own LFR-AS-200 technology, while NextChem will leverage its own know-how to enable the joint venture company to deliver the extended basic design, procure the critical proprietary equipment relevant to the conventional island and balance of plant of the nuclear power plant, and provide project management/integration services to Newcleo.
"The conventional island and balance of plant are essential to convert nuclear energy into electrical power dispatchable to the grid or used to serve chemical districts according to NextChem's e-Factory format, thus contributing to the decarbonisation of the chemical industry by producing low-carbon chemicals and e-fuels," the partners said.
The joint venture company will also provide integration services to other small modular reactor (SMR) and advanced modular reactor vendors who are not competing with Newcleo. "This business model will serve the industrialisation of the energy transition for any customer potentially interested in implementing power plants based on Generation IV nuclear technologies," they said.
Tecnimont - another Maire subsidiary - will be granted a preferred partner status for the delivery of projects, thanks to its state-of-the-art modularisation approach to optimise construction and planning methodology, reducing time and costs.
"This collaboration is a clear representation of our ability to offer a complete range of services for energy transition combining our innovative vision on sustainable technology solutions with our traditional competences in integrated engineering solutions," said Maire CEO Alessandro Bernini. "Today we set a further milestone in our progressive path to implement carbon-neutral chemistry models based on safe, reliable and competitive energy supply."
Newcleo CEO Stefano Buono said: "This joint venture brings together the best of our respective expertise and skills to trailblaze the delivery of new nuclear technologies. Maire's sustainable technology value proposition provided through NextChem, strong track record in international EPC delivery, optimising process plant and implementing modularisation makes them the perfect partner for the modular design of our Advanced Lead-Cooled Fast Reactors. Their approach to a circular economy dovetails with our aim to close the nuclear fuel cycle and provide a sustainable solution to the issue of waste.
"This venture marks a new era for collaboration in the sector, which alongside other partnerships will be instrumental in realising the energy transition. We are glad to see major technology and engineering companies entering the nuclear business' fast race towards a decarbonised world."
According to Paris-headquartered Newcleo's delivery roadmap, the first non-nuclear pre-cursor prototype of its reactor is expected to be ready by 2026 in Italy, the first reactor operational in France by the end of 2031, while the final investment decision for the first commercial power plant is expected around 2029.
At the same time, Newcleo will directly invest in a mixed uranium/plutonium oxide (MOX) plant to fuel its reactors. In June 2022, Newcleo announced it had contracted France's Orano for feasibility studies on the establishment of a MOX production plant.
Oklo signs power agreement with data centre developer
Wednesday, 18 December 2024
In what is claimed to be "one of the largest corporate power agreements in history", US nuclear power plant developer Oklo has signed a non-binding Master Power Agreement with data centre designer, builder and operator Switch to deploy 12 GW of Oklo Aurora powerhouse projects by 2044.
(Image: Oklo and Switch)
The Master Agreement establishes a framework for collaboration, with California-based liquid metal fast reactor developer Oklo expected to develop, construct and operate Aurora powerhouses to provide power to Switch across the USA through a series of individual binding power purchase agreements.
Since January 2016, all Switch data centres have been powered by 100% renewable energy, nearly 984 gigawatt-hours of power annually. The partners said this Master Agreement with Oklo supports Las Vegas-headquartered Switch's mission to "build efficient, sustainable infrastructure while bolstering the voluntary market for renewable and clean energy sources".
They added: "This Master Agreement highlights Oklo's business model of simplifying clean energy access by selling power, not power plants. It offers customers a direct, flexible pathway to clean, reliable, and affordable advanced nuclear energy."
Oklo's model is to build, own and operate its reactors - it will be selling power rather than power plants. The company, founded in 2013 and with OpenAI co-founder Sam Altman as chairman, says its deployment model can be tailored to individual needs and will help industries reduce reliance on existing grids.
The Aurora powerhouse is a fast neutron reactor that uses heat pipes to transport heat from the reactor core to a supercritical carbon dioxide power conversion system to generate electricity. It uses metallic fuel to produce up to 50 MWe as well as producing usable heat, and can operate on fuel made from fresh HALEU or used nuclear fuel. It says it aims to deploy its first commercial unit before the end of the decade.
"The relationship with Oklo underscores our commitment to deploying advanced nuclear power at a transformative scale for our data centres, further enhancing our offerings of one of the world's most advanced data centre infrastructures to current and future Switch clients," said Switch Founder and CEO Rob Roy. "By utilising Oklo's powerhouses, we aim to ensure that Switch remains the leader in data centre sustainability while supporting our vision of energy abundance."
"We are excited to collaborate with Switch on this historic agreement," said Jacob DeWitte, co-founder and CEO of Oklo. "Rob Roy and the Switch team share the vision we have for nuclear energy's role in powering artificial intelligence and providing the world with energy abundance. Oklo expects to benefit enormously from Switch's record of turning visions into reality.
"The lifespan of this Master Agreement will allow us to iterate and evolve with Switch, from development to deployment to scaling. We believe that working with Switch will not only accelerate our early powerhouses but also accelerate our ability to scale by demonstrating customer demand for decades to come."
There has been growing interest from operators of data centres in using nuclear energy, which they see as a way to meet their considerable projected energy requirements while also helping them to meet their climate commitments. The past few months have seen Microsoft, Google and Amazon all signing agreements to use nuclear energy in the years to come in the USA.
Last month, Oklo said it had a customer pipeline of 2100 MW for its Aurora powerhouse reactors, which it says will range from 15 MWe to 50 MWe and be scalable.
Reactor vessel installed at Xudabao 4
Wednesday, 18 December 2024
The reactor vessel has been installed in its design position at Xudabao 4, Rosatom has announced.
(Image: Rosatom)
In June 2018, Russia and China signed agreements, including for the construction of two VVER-1200 reactors at the new Xudabao (also known as Xudapu) nuclear power plant site in Liaoning province.
The two units - 3 and 4 - are scheduled for commissioning in 2027-2028.
Alexey Bannik, vice president of Rosatom's JSC Atomstroyexport for projects in China, said: "The Xudabao NPP construction project is a striking example of cooperation between Russia and China in the field of high technology. Our partnership spans more than a decade, and the power units created according to the Russian design have demonstrated many years of efficient and trouble-free operation. And our joint history continues."
Agreements signed in June 2019 are for Rosatom to supply nuclear fuel, design the nuclear island, supply key equipment, as well as provide field supervision, installation supervision, and commissioning services for the supplied equipment. Turbine generators and balance of plant are being supplied by China.
Construction of Xudabao unit 3 began in July 2021, with that of unit 4 starting in May 2022. In June this year, the dome was hoisted into place on the reactor building of unit 4 in a single stage process.
When completed, the two units are expected to generate more than 18 billion kWh of electricity per year, equivalent to saving about 6.4 million tonnes of coal and reducing carbon dioxide emissions by about 18.9 million tonnes per year.
Two CAP1000 reactors - the Chinese version of the Westinghouse AP1000 - are planned for units 1 and 2 of the Xudabao plant. Construction of unit 1 began in November 2023.
The Xudabao plant is owned by Liaoning Nuclear Power Company Limited, a joint venture between China National Nuclear Corporation (70%), Datang International Power Generation Company (20%) and State Development and Investment Corporation (10%).
US development agency announces grants for Bulgarian nuclear projects
Wednesday, 18 December 2024
The US Trade and Development Agency has signed two grant agreements to support Bulgaria's nuclear ambitions: one will support a cost-shared feasibility study with US company Deep Isolation to support the safe underground disposal of used fuel from Bulgaria's nuclear power plants, while the other will support a prefeasibility study for the deployment of small modular reactor technology.
The agreement for the USTDA grant to support the waste disposal study was signed by Ebong (seated, left) and Tzochev (Image: USTDA)
The US agency-funded study on underground disposal will be carried out by Deep Isolation to evaluate the feasibility of disposing used fuel from existing and future power plants a kilometre or more below ground, using Deep Isolation's patented deep borehole technology. The agreement was signed by US Trade and Development Agency (USTDA) Director Enoh Ebong and, on behalf of the Bulgarian government, by Sergey Tzochev, Head of the Board of Directors for State Enterprise Radioactive Waste (SERAW), who said: "Partnering with Deep Isolation represents a step toward our long-term vision of exploring innovative and sustainable approaches for the safe management of radioactive waste, based on the latest advancements in science and technology."
"Bulgaria is prioritising safety measures that will allow it to expand its nuclear power generation capacity," Ebong said. "Using cutting-edge US technology to create a safe long-term disposal option for spent fuel can also open the door to additional plants being built. USTDA's support for this project is a continuation of our longstanding engagement with the country's nuclear energy sector."
A separate grant agreement signed by USTDA with state-owned Bulgaria Energy Holding (BEH) is for a detailed technical analysis of US-sourced small modular reactor (SMR) design options to support Bulgaria's planned deployment of one or more SMR nuclear plants. It will also support an examination of potential plant sites and the development of a roadmap outlining a path to implementation, including an approach to securing financing.
"Our assistance will support Bulgaria’s goal of remaining a regional leader in electricity production while supporting international decarbonisation efforts," Ebong said.
"USTDA’s study will be crucial for the application of the new SMR energy technology in Bulgaria," Minister of Energy Vladimir Malinov said.
BEH is a state-owned holding company which owns the main electricity generation facilities in Bulgaria, including the existing Kozloduy nuclear power plant, as well as the country's electricity and gas transmission grids and transit networks. In 2021, it signed a memorandum of understanding with US engineering firm Fluor to look at the possibility of replacing coal boilers with NuScale SMRs. The country has committed to stop using coal for electricity generation by the late 2030s, with plans including two new Westinghouse AP1000 reactors to be built at the Kozloduy site.
The USTDA strategically facilitates export opportunities for US companies, funding project preparation and partnership-building activities that develop sustainable infrastructure and foster economic growth in partner countries.
Taykwa Tagamou Nation and Canada Nickel announce $20 million investment partnership
Canada Nickel | December 16, 2024 | PRESS RELEASE Canada Nickel’s Crawford project due to start output in 2027. (Image courtesy of Canada Nickel.) Highlights:
Largest ever known direct investment into a critical minerals mining project in Canada by a First Nation
Taykwa Tagamou Nation to hold 8.4% equity in Canada Nickel Company (upon conversion) and the right to nominate one individual to the Company’s Board of Directors
TORONTO, Dec. 16, 2024 /CNW/ – Taykwa Tagamou Nation (“TTN“) and Canada Nickel Company Inc. (“Canada Nickel” or the “Company“) (TSXV: CNC) (OTCQX: CNIKF) are proud to announce an investment reflecting a shared commitment to advancing Canada Nickel’s flagship Crawford Nickel Sulphide Project while fostering economic empowerment and long-term collaboration. TTN will invest $20 million at closing of its own capital in a Convertible Note that will be convertible into 16.67 million Canada Nickel common shares at a price of $1.20, representing an 8.4% interest in the Company (based on the Company’s current issued and outstanding share capital). The Convertible Note was signed on December 13, 2024. Completion of the transaction, which is expected to occur in January 2025, is subject to certain conditions including the approval of the TSX Venture Exchange and the receipt of all other required third party consents.
“This partnership exemplifies our vision of economic self-determination,” said Chief Bruce Archibald of TTN. “By utilizing our own capital to secure a significant stake in Canada Nickel, we’re ensuring we have a true seat at the decision-making table. This collaboration paves the way for future generations to thrive while maintaining our commitment to environmental stewardship and community well-being. We are proud to be setting a new standard for First Nation partnership in the mining sector. It demonstrates how mutual respect can drive meaningful change and lasting benefits for both proponents and impacted First Nations.”
TTN’s investment not only ensures direct financial benefits for its community members but also positions the First Nation as a key player in the global transition to clean energy, as nickel is a critical mineral for electric vehicle batteries and other sustainable technologies and the Company’s flagship Crawford Project is poised to be Canada’s largest nickel mine.
“This transaction demonstrates what is possible when industry and First Nations work together towards a common goal,” said Canada Nickel CEO, Mark Selby. “TTN’s leadership and vision have been instrumental in shaping this partnership. We are excited to welcome TTN as true partners in our journey to deliver critical minerals for the clean energy transition. As we advance our flagship Crawford Project towards a construction decision, we also plan to unlock the potential of the Timmins Nickel District together by completing eight resources by mid-2025, building a future that benefits both the environment and future generations.”
Canada Nickel and TTN share a deep mutual interest in environmental stewardship. With Canada Nickel’s In-Process Tailings carbonation, the Crawford Project is positioned to be a net-zero operation, and one of Canada’s largest permanent carbon storage facilities, storing up to 1.5M tonnes of C02 annually during its peak production period.
“TTN has always sought to lead with vision and action, and we’re proud that this partnership sets a new benchmark for how First Nations can engage with the mining sector,” said Deputy Chief Derek Archibald of TTN. “This agreement demonstrates what can be achieved when First Nations are creative with their own-source revenues, and respect, collaboration, and equity are at the forefront.”
Convertible Note The $20 million secured Convertible Note (the “Note”) will have a five-year term from closing and carry a 4.75% coupon per annum paid quarterly prior to conversion. The Note provides TTN with the right to convert into 16.67 million common shares (at a conversion price of $1.20 per share), representing an 8.4% equity interest in the Company (based on Canada Nickel’s current issued and outstanding share capital of 181,418,982 common shares). TTN has agreed to provide a $1 million deposit on signing. TTN will also have a right to one seat on the Company’s Board of Directors for so long as it holds the Convertible Note or, after conversion, at least 5% of the Company’s shares.
Quotes This landmark agreement between Taykwa Tagamou Nation and Canada Nickel will help ensure that local communities and First Nations can share in the benefit of mineral development in Ontario”, said George Pirie, Minister of Mines for Ontario. “As the global demand for minerals grows, Ontario is ready to be a responsible producer of these critical resources, bringing good jobs and economic development opportunities to communities in the north and across the province.” – Hon. George Pirie, Minister of Mines
“I want to congratulate Taykwa Tagamou Nation and Canada Nickel for this historic partnership.” said Stephen Crawford, Associate Minister of Mines. “It is very exciting to see a First Nation taking an ownership stake in a critical minerals project that will be essential to the supply chains for electric vehicles and other clean technologies. When First Nations and mining companies in Ontario work together, economic growth and prosperity can be unlocked for entire regions of our province.” – Hon. Stephen Crawford, Associate Minister of Mines
About Taykwa Tagamou Nation Taykwa Tagamou Nation (TTN) is a progressive First Nation in Northern Ontario, committed to achieving economic self-determination while maintaining a strong focus on sustainability and community well-being. TTN is leading by example through innovative partnerships that ensure its members benefit directly from economic opportunities while safeguarding its cultural and environmental values for future generations.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high-growth electric vehicle and stainless-steel markets.
Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel Sulphide Project in the emerging Timmins Nickel District. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions.
This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, drill and exploration results relating to the target properties described herein (the “Properties”), the significance of drill results, the ability to continue drilling, the impact of drilling on the definition of any resource, the potential of the Crawford Nickel Sulphide Project and the Properties, timing and completion (if at all) of mineral resource estimates, the ability to sell marketable materials, strategic plans, including future exploration and development plans and results, corporate and technical objectives, and the completion of assays, follow-up geophysics and further drilling. Forward-looking information is necessarily based upon several assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
BHP sees rising uncertainty for miners on trade as Trump returns
Mike Henry, chief executive officer of BHP Group. (Image by the World Economic Forum, Flickr.)
BHP Group, the world’s biggest miner, expects increasing uncertainty in the near term as US President-elect Donald Trump prepares to implement a slew of tariffs and other trade measures.
“In the near term, there is going to be a degree of uncertainty related to trade flows, tariffs, industrial policy,” BHP chief executive officer Mike Henry said in a Bloomberg TV interview. That is “something that we keep a very close eye on specifically in respect to the incoming administration.”
Mining companies across the globe have been spooked by Trump’s plans to slap tariffs on everything from cars to computer chips, and also a the possibility of further trade tensions with China, the single biggest buyer of nearly all metals.
However, Henry added that BHP expects the US to be strong supporter of the mining industry under Trump’s presidency.
“We know there is strong support for mining, strong understanding of the need for security of critical mineral supply chains,” he said. “Exactly how that plays out in practice and policy is yet to be determined.”
BHP earlier this year tried to buy Anglo American Plc in a $49 billion deal. Henry said good mergers are still few and far between, adding that his focus is BHP’s copper business from its own assets.
(By Thomas Biesheuvel and Francine Lacqua)
Nippon Steel, Sojitz to take 49% stake in Champion Iron’s project in Canada
Reuters | December 18, 2024 | The Kami open-pit iron ore mine is located to the south of Labrador City and Wabush in the province of Newfoundland and Labrador. Credit: Stantec
Australia’s Champion Iron said on Thursday Japanese steelmaker Nippon Steel and trading house Sojitz will buy a 49% stake in the company’s Kami project in Canada for A$245 million ($152 million).
Nippon and Sojitz will hold a 30% and 19% stake respectively in the iron ore project in Canada’s northeast, and share development and construction costs based on their share in the mine, Champion said in a statement.
Kami, which Champion acquired in 2021, is also expected to receive as much as A$490 million ($305 million) through future contributions from Nippon and Sojitz, it added.
Champion’s CEO David Cataford said the deal underlined Kami’s potential.
“The financial support and collaboration provided by the partners mark an important milestone,” Cataford said in the statement.
Nippon, Japan’s largest and the world’s No. 4 steelmaker, is looking to optimize its supply chain from Kami, the company’s managing executive officer Ryuichi Nagai said.
Nippon Steel, which currently has a global production capacity of 65 million tons a year, is looking to raise that to 100 million tons a year in the long term.
It is currently trying to secure US approval for its acquisition of US Steel, a key part of that strategy, and has also been looking to buy stakes in coking coal and iron ore mines to ensure a stable supply of essential raw materials.
Nippon will invest C$150 million ($104 million) for its stake in Kami, while incurring about C$1.16 billion in development costs by the project’s completion, the company said in a statement. The costs will be subject to investor approval of the project’s development and the results of a future feasibility study, it added.
Kami is an advanced-stage open-pit iron ore mining project and offers an opportunity to secure the supply of direct reduction iron ore, Nippon Steel said.
Direct reduced iron, along with high-quality scrap, are necessary for the production of high-grade steel from large electric arc furnaces, which Nippon Steel aims to build to reduce carbon emissions.
“Iron ore to be produced at Kami will be used for hot briquetted iron (HBI), not as conventional iron ore for blast furnaces… so this is an investment for future production,” Shingo Nakamura, a senior executive at Nippon Steel, told reporters in Tokyo.
The project feasibility study is expected be completed in mid-2026, and construction would take about four years once the final investment decision is agreed, the statement said.
Nippon Steel estimated costs for all partners in the Kami project at nearly C$4 billion.
Kami is in Newfoundland and Labrador, a few kilometres from Champion’s operating Bloom Lake mine in Quebec.
Champion filed a pre-feasibility study for Kami in March 2024.
($1 = 1.4439 Canadian dollars)
(By Nichiket Sunil and Yuka Obayashi; Editing by Alan Barona and Kate Mayberry) Canada clears Paladin’s $789 million Fission Uranium takeover
Reuters | December 18, 2024 | Fission Uranium’s Patterson Lake South project in Saskatchewan. (Credit: Fission Uranium.)
Australia’s Paladin Energy has received the final green light it needed from Canadian authorities to buy Fission Uranium in a C$1.14 billion ($789.1 million) deal that cements is position as a major global producer, it said on Thursday.
Paladin got the clearance under the Investment Canada Act on Wednesday and said the deal under which it would acquire Fission’s advanced PLS project in Saskatchewan was expected to be completed by early January 2025.
The clearance comes as prices for the nuclear fuel surge on expectations of a demand spike as the energy transition unfolds. Shares fell 1.8% amid weakness in the mining sector.
The Canadian government in October stepped in to review the proposed tie-up on national security grounds, raising concerns it may be derailed by the county that has become increasingly sensitive towards strategic resource firms being taken over by overseas buyers.
Paladin has agreed to several conditions Canada has attached to the merger including not to use any China-sourced finance for funding PLS, or to sell PLS’s uranium directly or indirectly to any China customers beyond China General Nuclear Power Group, which has an existing offtake agreement, it said.
Canada in July cracked down on big mining takeovers, saying it would only approve foreign buyouts of large Canadian firms involved in critical minerals production “in the most exceptional of circumstances.”
($1 = 1.4447 Canadian dollars)
(By Rishav Chatterjee, Divya Rajagopal and Melanie Burton; Editing by Alan Barona and Stephen Coates)
Canada to impose more tariffs on Chinese imports in new year
Reuters | December 17, 2024 | Canadian Prime Minister Justin Trudeau. (Image by the European Parliament, Flickr).
Canada plans to impose tariffs on a slew of Chinese products from as early as next year, the government’s fiscal update showed, as part of its wider investigation into imports from the country.
Prime Minister Justin Trudeau’s government has already slapped a 100% tariff on all Chinese electric vehicles and a 25% tariff on imports of Chinese steel and aluminum products, with the finance ministry previously saying it was also exploring options to widen the duties.
The mid-year fiscal update presented on Monday showed that Ottawa has decided to apply tariffs to imports of certain solar products and critical minerals from China early in the new year, with levies on semiconductors, permanent magnets, and natural graphite following in 2026.
“These measures will prevent Chinese non-market trade practices from causing unfair and harmful market distortions in Canada and throughout the North American continent,” the update said.
Trudeau’s government has frequently criticized the Chinese government-funded policy of oversupply and over-capacity. He says Canada needs to protect local jobs from cheap Chinese products finding their way into the country.
The government has often used its stand against China as a lever to show US President-elect Donald Trump that Canada is aligned with its biggest trading partner in its stand against Beijing.
Trump has vowed to impose 25% tariffs on goods from Canada on his first day in office on Jan. 20 if it fails to stop the flow of drugs and illegal immigrants across its border with the US.
The fiscal update, also called the Fall Economic Statement, did not detail the extent of the duties to be imposed, nor on which specific products, but said further details on the measures would be announced soon.
(By Promit Mukherjee; Editing by Kirsten Donovan)
US graphite miners ask Washington to impose 920% tariff on Chinese rivals
North American graphite miners asked the US government on Wednesday to impose a tariff as high as 920% on Chinese suppliers of the battery metal in order to counter what they describe as Beijing’s “malicious trade practices.”
The move is the latest attempt by Western critical minerals suppliers to offset China’s widespread control of the world’s extraction and processing of the building blocks for electric vehicles and electronics.
Graphite, the largest component by volume in an EV battery, can be synthetically produced or processed from naturally occurring sources. China is the largest producer of both types and earlier this month tightened exports of the metal to the US.
The American Active Anode Material Producers, a group of US and Canadian graphite producers, asked the US Department of Commerce and the US International Trade Commission (ITC) to “investigate whether China is exporting natural and synthetic graphite … at unfair prices to the United States” and to impose the tariff rate.
Chinese rivals operate at labor and environmental standards that allow them to rapidly boost production, the group said.
An existing US tariff of 25% on most Chinese graphite is “far too low” and can be absorbed easily by Chinese rivals, the group wrote to US officials.
The Commerce Department and the ITC did not immediately respond to an inquiry seeking comment.
President-elect Donald Trump has threatened to impose tariffs on Chinese products broadly. Trump’s advisers have also encouraged him to impose tariffs on all foreign critical minerals, including those tied to Beijing.
Not all US critical minerals companies support tariffs. Jervois Global, which had to close the only US cobalt mine before it even opened due to Chinese competition, told Reuters last week it would prefer manufacturers be required to buy Western metals instead of blanket tariffs.
(By Ernest Scheyder; Editing by Diane Craft)
Australian graphite firms petition US on alleged China dumping
Australia’s Novonix Ltd said on Thursday it had joined a petition urging US authorities to investigate China’s alleged dumping of battery-grade graphite at unfair prices, potentially harming domestic producers.
The battery metals and technology company has joined the American Active Anode Material Producers (AAAMP) in filing the petition.
“The filing asserts China is harming the nascent domestic graphite industry by exporting artificially cheap battery-grade graphite into the US, denying North American producers a fair opportunity to enter the market,” Novonix said in a statement.
North American graphite miners asked the US government on Wednesday to impose a tariff as high as 920% on Chinese suppliers of the battery metal to counter what they describe as Beijing’s “malicious trade practices.”
In a separate statement, Australia’s Syrah Resources said its unit, Syrah Technologies LLC, filed an anti-dumping and countervailing duty petition with the US Department of Commerce and the International Trade Commission.
Syrah’s petition, submitted in collaboration with the North American Graphite Alliance, seeks an investigation into Chinese exports of natural and synthetic graphite active anode material used in lithium-ion batteries.
(By Roshan Thomas and Melanie Burton; Editing by Shreya Biswas)
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Largest ever known direct investment into a critical minerals mining project in Canada by a First Nation
