Tuesday, September 27, 2022

Finland plans new tax on mining
Reuters | September 27, 2022 

The Kevitsa open-pit mine in northern Finland. Credit: Boliden

Finland’s government plans to introduce a new tax on minerals extracted by the mining industry, the Nordic country’s finance ministry said on Tuesday.


Some of the European Union’s greatest known reserves of minerals used for batteries and other products are located in Finland where there are around 40 operational mines producing nickel, zinc, lithium, cobalt and gold among others.

Finland has thus far not collected taxes on minerals but the government now proposes introducing a royalty of 0.6% on the taxable value of metallic minerals and of 0.2 euros per extracted tonne for other minerals, the ministry said.

With the new tax, the government calculates it could collect annually some 25 million euros ($24.1 million), with 60% of it to be directed to the municipalities where mines are located and 40% to the central government.

“The aim of the tax is to take into account the nature of mining minerals… as non-renewable natural resources and to direct a reasonable compensation for their use to the society,” the ministry said in a statement.

The new tax, pending approval in Finland’s parliament, is planned to take effect from the beginning of 2024.

($1 = 1.0376 euros)

(By Anne Kauranen; Editing by Terje Solsvik)
PERU
DESPITE A LEFT WING EL PRESIDENTE
MMG expects to invest $2 billion in troubled Las Bambas copper mine in Peru
OR IN THIS CASE BECAUSE OF HIM
Reuters | September 27, 2022 |

(Reference image by the Peruvian Ministry of Energy and Mines, Twitter).

Chinese miner MMG Ltd expects to invest $2 billion in the next five years to expand its troubled Las Bambas copper mine in Peru and is eyeing potential acquisitions to further increase production, an executive said on Tuesday.


Las Bambas General Manager Edgardo Orderique said at the Perumin mining conference that the company is hoping to double copper production by 2025 and double it again by 2030.

The mine is expected to produce 240,000 tonnes of copper in 2022, after years of production drops due to falling ore grades and social conflicts.

Peru is the world’s No. 2 copper producer and Las Bambas is one of the largest producers of the red metal in the world.

Las Bambas opened in 2016 in the Peruvian Andes, but has suffered recurrent disruptions from indigenous communities who say its vast mineral wealth has not translated into better living conditions.

Those disruptions reached a new peak this year when members of two neighboring communities settled inside Las Bambas, forcing the company to suspend all operations for over 50 days.

“The cost of the conflict since 2016 to date is of about 528 days of interrupted operations, almost a year and a half that we have gone through this situation,” Orderique said.

Most of the disruptions affected copper trucking, rather than copper mining.

Las Bambas is currently trying to build a second pit but work has been halted due to opposition from the indigenous Huancuire community, which used to own the land where the project is slated to be built.

Orderique said he hoped that the pit can be built in the “following months” to compensate for falling ore grades at its current pit.

MMG has previously said it will not go forward with the project until it can reach an enduring agreement with the Huancuire community.

(By Marcelo Rochabrun and Marco Aquino; Editing by Richard Pullin and Josie Kao)

BHP wants to expand presence in Peru, says executive
Reuters | September 27, 2022 

The Antamina mine in Peru is one of the largest copper-zinc mines in the world. (Image courtesy of Antamina)

Global miner BHP wants to expand its presence in Peru through exploration of new projects, Rag Udd, who heads the company in the Americas, said on Tuesday at the Perumin mining conference.


Peru is the world’s No. 2 copper producer and BHP is a part-owner of one of its largest copper mines, Antamina.

Udd added that BHP will invest $12 million on exploration in the next 10 months and that it is evaluating six potential projects.

Despite falling prices in recent months, Udd said he remains optimistic about future demand for copper amid an energy transition away from fossil fuels.

“Peru has all the potential to grasp that opportunity and unleash a new positive cycle,” Udd said, adding the country has maintained “stable” macroeconomic fundamentals in recent years.

BHP is also the operator of the world’s largest copper mine, Escondida in Chile.

(By Marcelo Rochabrun and Marco Aquino; Editing by Jonathan Oatis)

Sierra Metals halts 2022 production and finance guidance on Peru mine blockade

Cecilia Jamasmie | September 23, 2022 | 

Yauricocha copper mine. (Image courtesy of Sierra Metals | Twitter.)

Sierra Metals Inc. (TSX: SMT) (NYSE AMERICAN: SMTS) (BVL: SMT) said a group of residents from the Peruvian town of Alis are blocking the access to its flagship Yauricocha copper mine, where production has been suspended for over a week.


The Canadian miner did not specify why community members are blocking access to the mine, but some speculate it could be tied to the death of three miners at the operation due to a mudslide on Sept. 12.

Mine production remains halted with activities limited to critical operations to ensure proper safety and maintenance, Sierra Metals said.

The Toronto-based miner noted that due to uncertainty around how long it will take to solve the dispute and the potential delay in the progressive restart of production at Yauricocha, 2022 production and financial guidance have also been suspended.

Company representatives have taken part in conversations with members of the group and are also studying requests organized by the Peruvian government.

Sierra Metals said it remained committed to the social development of its host communities, adding that it was working towards “a peaceful and expeditious resolution” of the situation.

“As a road blockade is a matter of public concern, the company has involved the local authorities for their mediation and assistance in resolving this matter,” it said in the statement.

Yauricocha is an underground mine located in western central Peru in the Yauyos province at an average altitude of 4,600 meters.

Last produced 31.8 million pounds of copper and 79.3 million pounds of zinc.
Conflicts on the rise

Mining conflicts are on the rise in Peru, the world’s No. 2 copper producer and an important producer of zinc, as empowered local communities are upping demands under the administration of leftist President Pedro Castillo, in power since July 2021.

Earlier this year, a wave of protests hit the country’s major operations, including Glencore’s (LON: GLEN) Antapaccay, the country’s sixth largest copper mine. Other operations affected were Southern Copper Corp’s Cuajone mine and MMG’s giant Las Bambas mine, which is the nation’s fourth-largest copper mine and the world’s ninth-largest.

Copper is a hot commodity due to its role in the world’s decarbonization, with experts predicting that demand for the orange metal relating to energy transition activities — clean power and electrified transport, and the infrastructure supporting them — will grow about 4% per year between now and 2040.

Traditional copper consumers, such as construction and manufacturing of heating and cooling equipment will increase their need for copper only 1.5% per year over the same period.

Goldman Sachs expects global demand for copper will begin to outstrip supplies by 2025, pushing prices to twice their current level.

BULLSHIT

Revised Colombia tax bill still puts mining investment at risk – industry group

Reuters | September 27, 2022 |

Colombia. Stock image.

A tax reform proposed by Colombia’s leftist government will put mining investment and production at risk, despite modifications to the bill announced this week, the head of the country’s mining association said on Tuesday.


Colombia’s new leftist President Gustavo Petro has said he wants to raise an additional 25 trillion pesos (some $5.6 billion) in tax revenue in 2023, before eventually adding about $11.5 billion annually for social programs to government coffers.


The government agreed on Monday to modify the reform to continue to allow oil and mining companies to deduct royalty payments from taxes in exchange for raising income taxes on them by 5% and increasing an export tax for oil and coal sold above certain threshold prices to 20%.

Oil and coal are Colombia’s principal exports and sources of national income. Petro campaigned on promises to move toward renewables and halt new oil exploration.

Juan Camilo Narino, Colombian Mining Association (ACM) president, said even the modified bill put an undue tax burden on miners, citing what he said was 90% effective tax rate.

“The tax structure must coincide with the realities of the business,” Narino told reporters. “These contributions are going to diminish and fall drastically in the short and medium-term,” he said referring to pressure the new tax regime will put on the industry.

Narino said the mining industry would contribute 48% of the revenue raised by the tax reform – some $2.62 billion.

The bill may compromise production of minerals, especially coal, Narino added, and reduce foreign investment by up to 17%.

“It puts at profound risk the viability of the Colombian mining sector, future investments and most seriously, the stability of 640,000 families” involved in the industry, he said.

Coal exports will pay the 20% tax when prices exceed $86 per tonne, based on a 20-year average, the ACM said.

The group has asked the government to remove that proposed charge in exchange for higher income tax, Narino added, similar to taxes levied on the financial industry.

Mining companies will pay 14.7 trillion pesos in taxes, royalties and high price duties this year, he said, a figure that could rise to 25 trillion pesos next year.

(By Luis Jaime Acosta and Julia Symmes Cobb; Editing by Jane Merriman)

Colombia May Shoot Itself In The Foot With Ban On Fracking

OR IT MAY KEEP THE PEOPLE HAPPY

(NOT PROTESTING)

  • Crude oil is Colombia’s largest export responsible for around a third of the Andean country’s total exports by value.

  • Colombia’s lack of proven oil and natural gas reserves, and the absence of large-scale discoveries for two-decades, points to fracking being the only viable means of sustaining its oil industry.

  • Colombia’s previous government was in favor of fracking, but the current government is looking to ban the practice altogether.

  The controversial hydrocarbon technique hydraulic fracturing, known as fracking, which sparked the U.S. oil boom catapulting that country to become the largest petroleum producer globally, is drawing considerable attention in Latin America. A major fracking boom is underway in the region’s third largest economy, Argentina, which is driving oil and natural gas production to record highs. Mexico is also embracing the controversial hydrocarbon extraction technique to boost economically crucial petroleum output. Fracking is also under consideration in Bolivia, Chile and Uruguay as Latin American economies, hit hard by the 2020 COVID-19 pandemic, struggle to boost growth and government income while reducing soaring poverty. In stark contrast the strife-torn Colombia is seeking to ban fracking with newly appointed leftwing President Gustavo Petro having campaigned on an anti-extractivist platform.

During his electoral campaign Colombia’s first ever leftwing president stated he intended to end contracting for oil exploration and ban fracking in the Andean country. This will sharply impact Colombia’s hydrocarbon dependent economy and potentially cut funding for Petro’s planned programs aimed at alleviating poverty. For over a decade Colombia has punched well-above its weight when it comes to hydrocarbon production. Despite a lack of proven oil reserves, which at the end of 2021 amounted to just over 2 billion barrels sufficient for 7.6 years of production, Colombia is Latin America’s third largest oil producer. The expansion of the oil industry over the last two decades, with annual average petroleum output exceeding one million barrels per day for the first time during 2013, saw petroleum become a key economic driver.

Crude oil is Colombia’s largest export responsible for around a third of the Andean country’s total exports by value. Data from Colombian government statistics agency, DANE, shows the Andean country exported $12.1 billion of crude oil and derivative products for the first seven months of 2022. That represents 35% of all exports, which totaled $34.6 billion, for the period, making petroleum Colombia’s single largest export. The peak oil industry body, the Colombian Petroleum Association, estimated the hydrocarbon sector (Spanish) directly contributed $20 trillion Colombian pesos to government coffers during 2021 which was a considerable increase over the $11.5 trillion generated in 2020 but less than the $26.2 trillion paid during 2019. The industry body believes that amount will rise to over $24 trillion pesos for 2022. Those numbers indicate Colombia’s oil industry is responsible for generating around a fifth of government revenue. That underscores the industry’s importance as a source of fiscal income, especially with the Petro administration planning to hike government spending on social programs in an uncertain economic environment weighed down by runaway inflation and fears of a global recession. 

Colombia’s endemic lack of proven oil and natural gas reserves, coupled with an absence of large-scale discoveries for two-decades, points to fracking being the only viable means of sustaining the Andean country’s vital hydrocarbon sector. This is especially the case with Colombia’s proven oil reserves set to expire by around 2030 and sooner if production returns to pre-pandemic levels of around 880,000 barrels per day. Since 2017 Colombia has been facing a natural gas crisis, which forced the country to start importing liquified natural gas in December 2017. That further stresses the need for Bogota to focus on bolstering energy security and expanding hydrocarbon reserves, particularly with proven natural gas reserves of nearly 3.164 trillion cubic feet only capable of sustaining production for eight years.

Fracking has long been seen as a solution to Colombia’s limited proven hydrocarbon reserves. The U.S. EIA estimates Colombia has at least 5.4 billion barrels of technically recoverable shale oil and 20.1 trillion cubic feet of shale gas in the Middle Magdalena and Llanos Basins alone. Colombia’s highest administrative tribunal the Council of State in a July 2022 ruling overturned its moratorium on hydraulic fracturing, established in 2018, and rejected a lawsuit seeking to ban fracking in Colombia. The court found that the rules implemented by the Duque administration, which left office on 7 August 2022 when Petro was inaugurated, for fracking are legal. The decision opened the door for the commencement of commercial fracking operations in Colombia.

Nonetheless, moves are afoot by Petro’s administration to ban fracking in Colombia despite the Council of State of Ruling. The Andean country’s Congress recently held a hearing for Bill 114 of 2022 (Spanish) which seeks to prohibit hydraulic fracturing of the exploitation of unconventional hydrocarbon deposits. The bill is supported by Colombia’s President whose Minister of the Environment and Sustainable Development Susana Muhammad was quoted as stating in local media (Spanish):

“We believe that fracking and unconventional ones are not a path that accelerates the energy transition because it would delay it, has high environmental costs especially in land use, in the use of water and irrigation not known and difficult to know only, as is the impact on the very complex Colombian geology,"

For the bill to proceed it must be debated by a congressional commission and discussed in both chambers before approval and authorization by Colombia’s president.

Rising uncertainty surrounding fracking saw Colombia’s state-controlled energy company Ecopetrol request permission (Spanish) from the industry regulator, the National Hydrocarbons Agency (ANH – Spanish initials), to suspend its two fracking pilots for 90-days. Ecopetrol, which is the operator, partnered with ExxonMobil to develop two fracking projects in the Middle Magdalena Valley, near the municipality of Puerto Wilches, known as Kale and Platero. The pilots are attracting substantial opposition from the local community, primarily over concerns regarding water contamination. A Barrancabermeja court ruled in the favor of a community organization which sought to end the projects on the basis that Ecopetrol had not consulted with the local community as required by Colombian law. The Administrative Court of Santander later overruled that decision finding the request for prior consultation by the local Afrowilches community was inadmissible. Those events indicate that even if Bill 114 of 2022 is not passed into law considerable opposition to fracking will continue in Colombia, making its introduction fraught with uncertainty, thereby deterring the required investment from energy companies.

By Matthew Smith for Oilprice.com



The Global Water Crisis Could Crush The Energy Industry

  • Water is growing more scarce due to climate change.

  • Water scarcity could derail the green energy boom, and even hinder fossil fuel production.

  • With rising concerns over water scarcity, mainly due to climate change, there are fears that the big transition to renewable energy will be hindered even further.

For years, the energy sector, and almost every other sector, has taken water for granted, viewing it as an abundant resource. But as we move into a new era of renewable energy, the vast amounts of water required to power green energy operations may not be so easy to find. And it’s not just renewables that are under threat from water scarcity, as it also hinders fossil fuel production and threatens food security. 

In recent months, we have seen extreme droughts across Europe and the U.S., which are finally making people realise the significance of water security. Stefano Venier, CEO of the Italian energy infrastructure company Snam, highlights the huge impact recent droughts have had on both food security and energy production. Labelled as ‘Europe’s worst drought in 500 years’, the low water levels have restricted shipping capabilities, as well as drying up soil and reducing summer crop yields

Venier explains, “For a long time, water was considered [as being] for free, as something that is fully available in any quantity.” He went on to say, “Now, we are discovering that with climate change … water can become scarce.” And so, “we have to regain the perception of importance, and the value [that] … the water has, also, with respect to … energy production… we have discovered that without water, enough water, we cannot produce the energy we need, or we can’t ship the fuels for filling the power plants,” he added.

The drought has already raised concerns for nuclear power plant operators that rely on water from rivers to cool their nuclear reactors. EDF typically uses water from the Rhone and Garonne but rising water temperatures mean that nuclear power output could be reduced during hot periods. The falling water levels have also hindered traditional energy operations such as coal output, according to several European energy firms.

But the issue of water scarcity is perhaps most detrimental to hydropower projects. In the U.S., several hydropower operations are located along rivers with falling water levels, with a higher risk of water scarcity by 2050. Montana, Nevada, Texas, Arizona, California, Arkansas and Oklahoma are the most affected states. A recent study published in the Journal Water found that 61 percent of all global hydropower dams will be in basins with very high or extreme risk for droughts, floods or both. In addition, one in five hydropower dams will be in high flood risk areas, an increase from one in 25 today. 

World Wildlife Fund’s Global Freshwater Lead Scientist Jeff Opperman explains, “Hydropower projects must deal with a range of hydrological risks–ranging from too little water to too much–and these risks are projected to increase in many regions due to climate change.” “Already, we’ve seen regions, such as the southwestern US, southern Africa, and Brazil, where hydropower generation has declined due to falling water levels,” he adds. 

And it’s not just the U.S. that is facing these challenges. In August, Norway threatened to limit its power exports due to low reservoir levels. The country, which relies on hydropower for around 90 percent of its electricity production, increased regulations on power production to prevent hydroelectric reservoir levels from running out of water. This news came just days after the world’s longest under-sea power cable began transferring hydroelectric energy from Norway to the UK. 

Norway’s Minister of Petroleum and Energy Terje Aasland explained, “We need a management mechanism or security mechanism that safeguards national security of supply so that we do not run out of water in our reservoirs.” He added, “We are now introducing a system where, when we come to a situation where the magazine capacity is below what is normal for the time of year and down to a critically low level, there will be a restriction on exports.” 

These kinds of restrictions could become commonplace if these severe weather events, and related water scarcity, continue to take place. Europe’s recent heatwave far exceeded the expectations of climate experts, with several countries reaching record highs which led to wildfires in areas that had never previously experienced such events, showing the reality of the effects of climate change. 

As well as the detrimental effect water scarcity has on energy output, it also has a hugely negative impact on food production. With several areas of the world seeing poorer harvests year on year, as temperatures soar and water scarcity becomes a challenge, many countries are worried about their food production levels. And the water-food-energy nexus is raising concerns over the impact of the two other factors on the energy sector. We’re already seeing this nexus work the other way, with increasing gas prices causing fertiliser shortages, which have exacerbated the impact of water shortages on agricultural yields further. 

With rising concerns over water scarcity, mainly due to climate change, there are fears that the big transition to renewable energy will be hindered even further. However, even traditional fossil fuel production cannot escape from the effects of water scarcity, and the water-food-energy nexus may further exacerbate the situation, meaning that plans to mitigate this scarcity must be quickly established to avoid a major energy crisis. 

By Felicity Bradstock for Oilprice.com

SEX POSITIVE IN A STALINIST COUNTRY
'I'll keep being myself': Newly crowned Miss Hong Kong Denice Lam doesn't fret being called 'nymphomaniac'


SEPTEMBER 27, 2022
ByKHOO YI-HANG

Denice Lam, daughter of 1980s Hong Kong acting legend Wilson Lam, will keep being true to herself.
Instagram/Denice Lam

Her sex life laid bare, recent Miss Hong Kong winner Denice Lam isn't worried about letting the world know about the sexual encounters she's had in the past.

Denice, 27, was declared the winner of the Miss Hong Kong 2022 beauty pageant last Sunday (Sept 25) but her fame has brought her unsavoury remarks labelling her as a "nymphomaniac".More from AsiaOneRead the condensed version of this story, and other top stories with NewsLite.

This is following her candid interview on talk show Abracadabra, where she described at length the more intimate moments of her sex life.

Said Denice during the show: "[Scorpio men] are not just handsome and tall, but they also have many moves and can last long.

"If you want to have a relationship with Scorpio men, it requires a lot of physical stamina. He will flip you around — I was light-headed and sweating profusely."

Adding that she's had five sexual partners, she also recalled an incident where a Pisces man lasted for around three seconds.

Read AlsoDaughter of 1980s Hong Kong heart-throb Wilson Lam crowned winner of Miss Hong Kong 2022


The man purportedly hugged her from behind and started rubbing on her before stating that he was done.

Her blunt anecdotes resulted in netizens flaring up and insulting her, even referring to her as a "nymphomaniac".

According to multiple media reports, Denice has responded to this uproar: "In this era, we don't need to be so secretive; relations between men and women are very common."

She added that previously, when she had one foot in the door of showbiz and was looking for opportunities to perform, she didn't expect to have such a big response.

"This has been a valuable lesson, but even so, I'll keep being myself in the future. As long as one is of a virtuous mind, it shouldn't matter what others say."

https://en.wikipedia.org/wiki/Sex-positive_movement

Sex-positivity is "an attitude towards human sexuality that regards all consensual sexual activities as fundamentally healthy and pleasurable, encouraging ...

https://www.ursu.ca/2021/07/28/what-is-sex-positivity

Jul 28, 2021 ... The term sex positivity was first coined in the 1920's by Wilhelm Reich who was a student of Sigmund Freud. Reich shared that sex wasn't as ...

https://www.esquire.com/uk/life/a36554013/fighting-for-the-female-orgasm-wilhelm-reich

May 28, 2021 ... His anti-authoritarian orgasm theory, which stressed the importance of open relationships and sexual freedom with women's economic and bodily ...

https://www.theguardian.com/books/2011/jul/08/wilhelm-reich-free-love-orgasmatron

Jul 8, 2011 ... Reich was a sexual evangelist who held that satisfactory orgasm made the difference between sickness and health. It was the panacea for all ills ...

https://theanarchistlibrary.org/library/marie-louise-berneri-wilhelm-reich-and-the-sexual-revolution

“To the individual with a genital structure, sexuality is a pleasurable experience and nothing but that; work is joyous vital activity and achievement. To the ...

https://www.fkawdw.nl/en/review/image/out_of_the_box_wilhelm_reich_and_the_future_of_sex

For Reich, this wasn't merely a physical process, but a political one. In his 1927 study The Function of the Orgasm, he theorized that the orgasm had healing ...

http://www.williamapercy.com/wiki/images/Negpos.pdf

SEX NEGATIVE, SEX. POSITIVE. This polarity owes its inception. toWilhelmReich(1897-1957),whosought ... the exaltation of "sex positivism" per-.

https://www.refinery29.com/en-us/2013/11/57345/sex-positive-meaning

Nov 17, 2013 ... Essentially, way back in the 1920s, Wilhelm Reich, a psychoanalyst and student of Sigmund Freud spread the word that sex wasn't the terrible ...