Wednesday, February 07, 2024

 NUKE NEWZ 

European SMR Industrial Alliance launched

07 February 2024


The European Commission has launched an Industrial Alliance dedicated to small modular reactors (SMRs), aiming to facilitate the development of SMRs in Europe by the early 2030s. The announcement came as the commission presented its assessment for a 2040 climate target for the EU.

The European Commission (Image: Pixabay)

The European Commission set up a European SMR pre-Partnership in June last year with the overall objective of identifying enabling conditions and constraints, including financial ones, towards safe design, construction and operation of SMRs in Europe in the next decade and beyond, in compliance with the EU legislative framework in general and to the Euratom legislative framework in particular.

In early November, it announced that it would establish an Industrial Alliance for SMRs early this year. Industrial alliances are a tool to facilitate stronger cooperation and joint action between all interested partners. Industrial alliances can play a role in achieving key EU policy objectives through joint action by all the interested partners.

"The cxommission is also launching an Industrial Alliance to facilitate stakeholder's cooperation at EU level and to accelerate the deployment of SMRs and ensure a strong EU supply chain, including a skilled workforce," the commission said in a statement on 6 February. "This will leverage EU's manufacturing and innovation capacities to accelerate the deployment of first SMR projects in the EU by early 2030 under the highest standards of nuclear safety, environmental sustainability, and industrial competitiveness."

According to the commission, this Industrial Alliance will elaborate a Strategic Action Plan in order to identify, for example: technically mature and commercially viable SMR technologies that could be supported under the alliance; potential gaps and solutions in the European supply chain for SMRs (including fuel and raw materials); investment barriers, funding opportunities and new financial blending options to support SMR development; and future needs for research on SMRs and advanced modular reactors (AMRs) and identify existing skills gaps along the supply chain to be addressed under the Euratom Research and Training Programme, and at national level.

A call for alliance membership will open shortly. All public and private legal entities which fulfil a set of eligibility membership criteria can apply for membership. In addition, a dissemination event covering the scope, objectives and activities of the Industrial Alliance is expected to be organised in Brussels next month.

European nuclear trade body Nucleareurope, which has been instrumental in the creation of the SMR Alliance, said: "Thanks to the work undertaken as Chair of the European SMR pre-Partnership Steering Committee and our outreach to Members of the European Parliament that culminated in the overwhelming adoption of an Own Initiative Report on SMRs."

"The deployment of SMRs will bring significant benefits to Europe, including greater energy sovereignty, lower CO2 emissions, new jobs and economic growth," said Nucleareurope Director General Yves Desbazeille. "The European nuclear industry has been at the forefront of innovation and industrial excellence for decades and this Industrial Alliance will help maintain our industry's world class position.

"However, there are several challenges which need to be tackled to ensure the smooth deployment of SMRs. Therefore, we are delighted that the commission is moving ahead with this alliance in order to work on viable solutions to overcome these challenges."

Urenco - which was actively engaged in the European SMR Pre-Partnership - welcomed the launch of the Industrial Alliance. "The increased global demand to reduce emissions and strengthen energy security is increasing the focus on new nuclear technologies such as SMRs and AMRs, as well as the fuels needed to power them," it said. "The alliance will help to further increase confidence in the sector by facilitating the necessary conditions across the supply chain to accelerate the development of these new technologies in a safe, efficient, and secure manner, and Urenco looks forward to supporting the Alliance through the relevant working groups."

2040 climate target announced


The announcement of the launch of the Industrial Alliance for SMRs came as the Commission published a detailed impact assessment on possible pathways to reach the agreed goal of making the European Union climate neutral by 2050. The EU's 2030 climate target is to reduce net greenhouse gas emissions by at least 55% relative to 1990. Based on the latest impact assessment, the European Commission recommends a 90% net greenhouse gas emissions reduction by 2040 compared with 1990 levels, launching a discussion with all stakeholders; a legislative proposal will be made by the next Commission, after the European elections, and agreed with the European Parliament and Member States as required under the EU Climate Law.

"Today's communication also sets out a number of enabling policy conditions which are necessary to achieve the 90% target," the commission said. "They include the full implementation of the agreed 2030 framework, ensuring the competitiveness of the European industry, a greater focus on a just transition that leaves no one behind, a level playing field with international partners, and a strategic dialogue on the post-2030 framework, including with industry and the agricultural sector."

It added: "Setting a 2040 climate target will help European industry, investors, citizens and governments to make decisions in this decade that will keep the EU on track to meet its climate neutrality objective in 2050. It will send important signals on how to invest and plan effectively for the longer term, minimising the risks of stranded assets ... It will also boost Europe's resilience against future crises, and notably strengthen the EU's energy independence from fossil fuel imports, which accounted for over 4% of GDP in 2022 as we faced the consequences of Russia's war of aggression against Ukraine. The costs and human impacts of climate change are increasingly large, and visible."

The European Commission noted that the energy sector is projected to achieve full decarbonisation shortly after 2040, "based on all zero and low-carbon energy solutions, including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro".

 

Outer dome installed on Chinese small modular nuclear reactor

07 February 2024


The outer containment dome has been successfully hoisted into place at the ACP100 small modular reactor demonstration project at the Changjiang site on China's island province of Hainan, China National Nuclear Corporation (CNNC) has announced.

(Image: CNNC)

The reactor building for the ACP100 - also referred to as the Linglong One - consists of three parts: the internal structure, the steel containment shell and the outer concrete shielding shell. The inner steel containment dome was installed in November.

The operation to lift and place in position the outer shell, which weighs about 550 tonnes, took one hour and thirty eight minutes on 6 February, in time for Chinese New Year and the Spring Festival holidays. CNNC said that 6000 workers at the Linglong One project site will stay at their jobs "and go all out to ensure that the project is completed on time".

Chen Weimin, deputy director of the Hainan Nuclear Power Engineering Management Office, said: "The hoisting of the outer dome into place means the main structure of the reactor building has been completed and laid the foundation for the subsequent capping of the reactor building." He said that there had been valuable experience for subsequent modular development of new nuclear.

The weather conditions had to be suitable for the operation (Image: CNNC)

CNNC announced in July 2019 the launch of a project to construct an ACP100 reactor at Changjiang in Hainan Province. The site is already home to two operating CNP600 PWRs, while the construction of the two Hualong One units began in March and December 2021. Both those units are due to enter commercial operation by the end of 2026.

First concrete for the ACP100 was poured on 13 July 2021, with a planned total construction period of 58 months. Equipment installation work commenced in December 2022 and the main internal structure of the reactor building was completed in March 2023.

Under development since 2010, the 125 MWe ACP100 integrated pressurised water reactor's (PWR's) preliminary design was completed in 2014. In 2016, the design became the first SMR to pass a safety review by the International Atomic Energy Agency.

Once completed, the Changjiang ACP100 reactor - which CNNC describes as "the world's first commercial land-based small modular PWR" - will be capable of producing 1 billion kilowatt-hours of electricity annually, enough to meet the needs of 526,000 households. The reactor is designed for electricity production, heating, steam production or seawater desalination.

The project at Changjiang involves a joint venture of three main companies: CNNC subsidiary China National Nuclear Power as owner and operator; the Nuclear Power Institute of China as the reactor designer; and China Nuclear Power Engineering Group being responsible for plant construction. For the demonstration plant, the reactor vessel is being supplied by Shanghai Boiler Works Limited, the steam generators by a CNNC subsidiary and other reactor internals by Dongfang Electric Corporation.

Construction starts on French lead-212 production facility

06 February 2024


Orano subsidiary Orano Med has laid the foundation stone for its Alpha Therapy Laboratory (ATLab) in Onnaing in northern France. This will be Europe's first industrial-scale pharmaceutical facility dedicated to the production of lead-212 (Pb-212) based radioligand therapies.

The ground-breaking ceremony for the ATLab Valenciennes facility (Image: Orano Med)

The isotope is used in an emerging medical treatment called targeted alpha therapy, in which an alpha-emitting isotope is combined with a protein or antibody that specifically targets and destroy cancer cells while minimising damage to healthy tissue. However the use of these therapies has been constrained by global radioisotope supply shortages.

Orano said the construction of ATLab Valenciennes is a step towards making these promising new treatments available to cancer patients with high unmet needs.

ATLab Valenciennes, with more than 3000 square-metres of floor space, will represent an investment of EUR29 million (USD31 million) and will create 25 direct jobs. It will focus on the production of Pb-212 therapies developed by Orano Med and their distribution in Europe. Orano Med is due to inaugurate a similar facility this year in Indianapolis to serve the US market.

This combined capacity will enable Orano Med to manufacture 10,000 doses a year as of 2025, with the aim of producing ten times that number by the end of the decade. Given the short half-life of Pb-212 (10.6 hours), the drugs need to be produced close to hospitals. The construction of further ATLabs is therefore envisaged to meet patients' needs worldwide.

"The ATLab in Onnaing is a very important step in our development strategy and is situated at the very heart of the industrial fabric of the Valenciennes metropolitan area and the Hauts-de-France region," said Guillaume Dureau, the Orano Group's Senior Executive Vice-President Projects & Innovation R&D and Nuclear Medicine. "The expansion of our production capacity in the radiopharmaceutical field is part of a drive to revitalise our country's industrial and economic fabric."

"We are convinced that radioligand therapies will soon become an essential tool in the fight against cancer," said Orano Med CEO Julien Dodet. "As the Phase II clinical trial of our most advanced drug AlphaMedix nears completion, we are building a global industrial platform to ensure the large-scale production and distribution of these potential treatments."

The construction of ATLab Valenciennes is supported by the Hauts de France region and the Valenciennes metropolitan area. The project has also been selected under the France 2030 plan following the call for "Industrialisation and health capacities 2030" projects and will receive public support of almost EUR3.8 million.


US lab reviews low-pressure microreactor design

06 February 2024


Idaho National Laboratory (INL) has completed a pre-conceptual design review of NANO Nuclear Energy Inc's ODIN low-pressure coolant microreactor design. The company's ZEUS microreactor design is also to be reviewed by the lab.

A rendering of the ODIN microreactor (Image: NANO Nuclear)

The microreactor company announced its Strategic Partnership Project Agreement with INL in April 2023, and requested the review to provide an external audit of the technical work completed to date on the ODIN design. "The review served to ensure that NANO Nuclear has thoroughly considered the necessary aspects of its design and the applicable regulations for advancing the technology towards a commercial product," the company said.

NANO Nuclear founder and Executive Chairman Jay Jiang Yu said the laboratory's evaluation of ODIN had provided "enormously useful and valuable insights" to assist the company's technological development. "This collaboration has equipped our world-class team with essential guidance and utilised national laboratory expertise to maintain our progress in the field of advanced nuclear reactors," he said.

According to company information, ODIN will use "conventional" uranium fuel with up to 20% enrichment, with a low-pressure coolant to minimise the stress on structural components and improve their reliability and service life. It will also use a unique reactivity control system design, aiming to have high reliability and robustness by minimising the number of moving parts. The reactor will operate at higher than conventional water-cooled reactor temperatures, and take maximum advantage of natural convection of coolant for heat transfer to the power conversion cycle at full power and for decay heat removal during reactor shutdown, operational transients, and off-normal conditions.

INL reviewed the technical information provided by NANO Nuclear on the reactor design, siting, fuel and decommissioning strategy, culminating in a panel review workshop to discuss every applicable area of the design and the future work required to successfully deliver an optimised and market-driven product. "The review panel provided recommendations and outlined a path forward for NANO Nuclear to advance and build on the work completed by its world-class scientific team to date," the company said.

INL is to carry out a similar review of NANO Nuclear's ZEUS microreactor, which features a fully solid core and is designed to fit within a standard ISO shipping container. Heat removal is through thermal conduction, eliminating the need for coolant and pumps.

"Idaho National Laboratory is a great resource to help the development and evolution of our advanced nuclear reactors," said James Walker, NANO Nuclear's CEO and head of nuclear reactor development. "Their recommendations will serve to both optimise our reactor designs, and ensure these developments simultaneously align with national standards and licensing requirements."

"The panel delivered tremendous value to us and our ODIN project," he added. "The planned review of the ZEUS reactor design is expected to provide that project with the same external input and direction which has so significantly benefitted ODIN."


MoltexFLEX publishes research on graphite interaction with molten salt

06 February 2024


MoltexFLEX scientists worked with the University of Manchester's Nuclear Graphite Research Group to use X-ray micro CT scanners to investigate how molten salt infiltrates pores within standard industrial grades of graphite.

Before (a) and after (c) 2D virtual slices of a sample of graphite exposed to the molten salt. Images (b) and (d) show 3D sections of the region highlighted by the yellow rectangle in (a) and (c). Image (b) shows the structure of pores within the graphite sample, and image (d) shows pores containing salt after exposure highlighted in red. The purple area is the large void visible within the highlighted area in (a) and (c) (Image: MoltexFLEX)

The research was conducted at MoltexFLEX's laboratory in Warrington and at Manchester University, which are both in northwest England. It involved immersing standard industrial grades of graphite in the molten salt, within stainless steel containers for 30 days at temperatures above 750 degrees Celsius.

The company's FLEX molten salt reactor is designed to operate at that temperature and the aim is to use commercially available graphite, which would make mass production of FLEX reactors easier, while keeping costs lower.

The research paper says: "For thermal spectrum Molten Salt Reactors (MSRs), graphite is typically utilised as moderator, reflector, and part of the core support structures. The inherent porosity within the graphite means that it is prone to infiltration by the molten salt, resulting in changes in its properties. Such property changes must be taken into consideration during reactor design and a good understanding of interaction between molten salt and the graphite microstructure is therefore important in selecting graphite grades for applications in MSRs.

"The graphite/molten salt interaction has traditionally been investigated using the weight gain after salt infiltration, followed by mercury intrusion porosimetry and post-mortem microstructure characterisations using, for example, Scanning Electron Microscopy. The results provided an overall description to the infiltration of molten salt into the graphite porosity. However, a more fundamental understanding of the graphite/molten salt interaction is still needed. How the pore size, shape, connectivity, and location with respect to the molten salt affect the detailed salt infiltration process remains to be understood."

It adds that the system used in the research, a non-destructive 3D microstructure characterisation technique, "can potentially deliver more detailed information for understanding the graphite/molten salt interaction" with the work aiming to observe the microstructure change due to the salt infiltration.

It says that the research was able to provide "a direct comparison of the graphite's microstructure before and after molten salt infiltration, enabling the relative volume of pores that have been filled by the salt to be quantified ... [and] delivered detailed information about the spatial distribution of the infiltrated salt and the 3D structures of the infiltrated salt. All of this provides valuable information for the understanding of the kinetics that control the molten salt infiltration into the porous graphite."

Ciara Fox, MoltexFLEX senior metallurgist, said: "The results were very much as we predicted. This research is a very promising first stage on the path to predicting and controlling the behaviour of molten salt infiltration within the graphite. It’s an important stepping stone in developing a technique that will allow us to do that."

MoltexFLEX has been working with the Nuclear Graphite Research Group team led by Professor Abbie Jones on graphite-related research for three years.

MoltexFLEX, a subsidiary of Moltex Energy Limited, is developing the FLEX reactor - the thermal neutron (moderated) version of Moltex Energy's stable salt reactor technology. The aim for the 60 MWt/24 MWe reactors is for them to be small and modular, passively safe, have no moving parts and, using 5% low-enriched uranium, have a five-year refuelling cycle. The target is to have the first reactor operational by 2029.

In May 2021, the Canadian Nuclear Safety Commission completed the first phase of the pre-licensing vendor design review for Moltex Energy's 300 MWe Stable Salt Reactor - Wasteburner (SSR-W 300) small modular reactor. The SSR-W is a molten salt reactor that uses nuclear waste as fuel. The company aims to deploy its first such reactor at the Point Lepreau site in New Brunswick by the early 2030s.

Preliminary design R&D completed for Russian molten salt research reactor

05 February 2024


The Mining and Chemical Combine (MCC), part of Rosatom, says that research and development work on the molten salt research reactor project has been completed, with a preliminary design developed.

(Image: MCC)

The MCC said the creation of the preliminary design was the "next step" towards creating the molten salt research reactor (IZhSR), which is intended to "allow us to develop key technological solutions for the transmutation of minor actinides, master molten salt technology and subsequently create a full-scale molten salt reactor, which will allow us to utilise minor actinides - the most dangerous component of nuclear waste from used fuel reprocessing, as they are highly radioactive and toxic, emit a large amount of heat and have a long half-life".

It added: "If you learn how to burn them (minor actinides), the period of danger will be significantly shortened and will provide a multiple reduction in waste to be buried in deep geological formations, and in the medium term will make it possible to implement the option of a less complex near-surface disposal of waste that no longer contains minor actinides."

The project, which involves a range of different organisations within Rosatom, is targeting a licence for construction in 2027 and a launch in 2031. The research and development work is due to be reviewed at a meeting within the first three months of this year.

The IZhSR project plans to use circulating molten salt fuel. It is part of the wider Russian federal project to develop "new materials and technologies for advanced energy systems" and part of the country's goal of closing the fuel cycle. Rosatom says that the period of potential danger from minor actinides can be reduced from 10,000 years to 300 as a result of the process.

Evgeniy Vlasenko, chief specialist of the development project management group, said: "With every problem solved our level of competence grows. A large amount of research work has been carried out and continues to be carried out, to justify all the decisions included in the preliminary design. MCC performs many of them on its own. The MCC's International Center for Engineering Competence develops technologies for the preparation of fluoride salts and fuel additives, verifies and certifies analytical methods for controlling their quality, and studies the physicochemical properties of salts. In the chief mechanic’s department, they are developing technologies for welding structural material - chromium-nickel alloy, which has not yet been used in the manufacture of reactors in Russia."

Environmental permitting of Polish SMR plant progresses

05 February 2024


Orlen Synthos Green Energy (OSGE) can now begin environmental and siting research for its planned small modular reactor (SMR) project in Stawy Monowskie, in Małopolska, Poland, after the country's General Director for Environmental Protection (GDOŚ) issued the scope of the environmental report for the project.

The planned site of the SMR power plant in Stawy Monowskie (Image: OSGE)

In mid-April 2023, OSGE announced it had shortlisted seven locations in Poland for further geological surveys to host SMR plants based on GE Hitachi Nuclear Energy's BWRX-300, for which it holds the exclusive right in Poland. The locations were: Ostrołęka, Włocławek, Stawy Monowskie, Dąbrowa Górnicza, Nowa Huta, Tarnobrzeg Special Economic Zone and Warsaw.

OSGE submitted applications in late-April to the Ministry of Climate and Environment for decisions-in-principle on the construction of power plants at six locations, omitting Warsaw from the list. The ministry issued decisions-in-principle for the six plants on 7 December. The decision-in-principle is the first decision in the process of administrative permits for investments in nuclear power facilities in Poland that an investor may apply for. Obtaining it entitles OSGE to apply for a number of further administrative arrangements, such as a siting decision or construction licence.

OSGE submitted an application to GDOŚ in May 2023 to determine the scope of the report on the environmental impact of the construction of the Stawy Monowskie plant. Last year it also submitted applications for the planned plants in Ostrołęka and Włocławek.

GDOÅš has now issued a decision specifying the requirements for the project in Stawy Monowskie. It indicated the main areas that the report will cover, including: conducting a natural inventory, identifying possible sources of cooling water, technological solutions that affect nuclear safety and radiological protection, and indicating how the power plant will be integrated with the energy transmission network.

"This is the first such decision in the entire European Union and another important step in the process of building BWRX-300 reactors in Poland," OSGE said. "The scope of such a document is determined for individual projects, taking into account the specificity of the location. The issuance of the decision by GDOÅš enables the company to commence environmental and location tests in the Stawy Monowskie location to the full extent necessary to prepare the Environmental Impact Assessment report. The time needed to prepare the report is estimated at up to two years."

"Preparing a report on the environmental impact of a nuclear investment is one of the most important elements of the investment process," said Rafał Kasprów, President of the Management Board of OSGE. "And also one of the most difficult. We are even more pleased with the good cooperation with the General Directorate for Environmental Protection and the regulator's professional approach to the first environmental proceedings in the entire EU regarding the construction of an SMR power plant.

"Today's decision of GDOÅš allows us to maintain the assumed project implementation schedules and gives us a chance to complete the investment when the Polish economy will be most in need of zero-emission and stable energy sources."

The BWRX-300 is a 300 MWe water-cooled, natural circulation SMR with passive safety systems that leverages the design and licensing basis of GEH's US Nuclear Regulatory Commission-certified ESBWR boiling water reactor design and its existing, licensed GNF2 fuel design, a unique combination that GEH says positions it to deliver an "innovative, carbon-free baseload power generation source" this decade.

In December 2021, GE Hitachi, BWXT Canada and Synthos Green Energy (SGE) signed a Letter of Intent to cooperate in deploying BWRX-300 SMRs in Poland. OSGE - a joint venture between chemical producers SGE and PKN Orlen - submitted an application to Poland's National Atomic Energy Agency (PAA) on 8 July 2022 for the assessment of the reactor design. PAA announced in May last year that the BWRX-300 is compliant with Polish nuclear safety and radiological protection standards.


Oklo reports progress in Idaho, Ohio

05 February 2024


A land rights agreement signed with the Southern Ohio Diversification Initiative (SODI) gives Oklo Inc the option and right of first refusal to purchase land in Southern Ohio where Oklo envisages deploying two of its Aurora 'powerhouses'. Meanwhile, the safety design strategy for a planned fuel facility in Idaho to support the deployment of its reactors has been approved by the US Department of Energy (DOE).

Oklo envisages building its second and third power plants at the Piketon site (Image: Oklo)

The agreement with SODI - the DOE-designated community reuse organisation for the former Portsmouth gaseous diffusion uranium enrichment plant - builds on a non-binding memorandum of understanding between Oklo and SODI from May 2023, and signifies progress toward siting development and implementation, the company said. Procurement of land at SODI will be a "major next step" for deployment of the two powerhouses, it added.

"We see incredible potential in the Piketon region, both in its talent and infrastructure, and we deeply value partnering with SODI and collaborating with the local community," said Oklo co-founder and CEO Jacob DeWitte. "We are also greatly appreciative to the efforts of the DOE Office of Environmental Management in making these public-private partnerships possible."

"Oklo's land purchase agreement further brings into focus the potential for transformative impact the redevelopment of this site can have on our energy infrastructure and the reinvigoration of our community," SODI Executive Director Steven Shepherd said.

Oklo's Aurora design is a compact 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. The Aurora 'powerhouse' uses metallic high-assay low-enriched uranium, or HALEU, fuel to produce about 15 MWe as well as producing usable heat.

Idaho fuel facility

 

In March 2020, Oklo submitted an application to the US Nuclear Regulatory Commission to build and operate an Aurora reactor at the Idaho National Laboratory (INL) site. The company announced on 31 January that the DOE has now reviewed and approved the safety design strategy (SDS) for the fuel facility it plans to build at INL to demonstrate the reuse of recovered nuclear material to support its advanced fission power plant demonstration there.

Oklo was previously selected through a competitive DOE-supported process to provide access to material recovered from used nuclear fuel from INL's now-decommissioned Experimental Breeder Reactor-II to produce high-assay low-enriched uranium for advanced reactors.

"The SDS approval is a major step towards a DOE approval of the Aurora Fuel Fabrication Facility as we continue towards our goal of producing fuel for our planned Aurora commercial power plant," DeWitte said.

The SDS is the first stage in DOE's approval process for the fuel facility. Oklo said it is working with INL operator Battelle Energy Alliance on the next phase, focusing on the conceptual safety design report which will summarise the hazard analysis efforts and safety-in-design decisions incorporated into the conceptual design, along with any identified project risks associated with the selected strategies.

Five express interest in Kozloduy new nuclear construction

05 February 2024


The deadline to express an interest in the construction of the proposed two new units at the Kozloduy nuclear power plant in Bulgaria has passed, with five companies submitting applications.

Kozloduy supplies about one-third of Bulgaria's electricity (Image: Kozloduy NPP)

In a statement issued on the Kozloduy plant's website the new build project company said that the applications will now be considered, following the passing of Friday afternoon's deadline. The new units are to be Westinghouse AP1000 reactors.

The initial part of the selection process will be to check that those expressing an interest meet the qualifying criteria. These include demonstrating construction experience and the commissioning of at least two nuclear units as well as "to have solid experience in the nuclear and turbine island of at least two units or have supplied and installed equipment for two units within the last 15 years - applicants must also demonstrate at least USD6 billion in turnover and profit for the five years period from 2018 to 2022". Candidates from the Russian Federation have been specifically excluded.

Bulgaria is aiming to have two new Westinghouse AP1000 units at Kozloduy nuclear power plant. Deputy Energy Minister Nikolay Nikolov told Bulgaria's official BTA news agency in December that the aim was to achieve a price of about EUR6 billion (USD6.5 billion) for each of the units.

Kozloduy units 1-4 were VVER-440 models which the European Commission had classified as non-upgradeable and Bulgaria agreed to close them during negotiations to join the European Union in 2007. Units 5 and 6 feature VVER-1000 reactors that were connected to the grid in 1987 and 1991, respectively. Both units have been through refurbishment and life extension programmes to enable extension of operation from 30 to 60 years.

When the decision to move ahead with AP1000 units at Kozloduy was given approval by the country's council of ministers in October, the target date for the completion of the first unit was 2033, with the second unit to follow "two or three years after the first one". The 2300 MWe capacity of the two new units would exceed the 1760 MWe capacity of the closed first four units. The Bulgarian government has also said that further units will be needed to replace units 5 and 6 by 2050.

Westinghouse will hold overall Design Authority responsibility for the AP1000 plant, the expression of interest document said, adding: "The responsibilities for the design of individual AP1000 plant systems and buildings shall be delegated by Westinghouse. The responsibility for the design of Modules, Constructions Assemblies and Platforms is aligned with the party that is responsible for the design of the building in which the item is located."


Pressure vessel in place at Indian plant

05 February 2024


The reactor vessel for Kudankulam unit 4 has been lifted into its design position at the construction site in Tamil Nadu, Rosatom announced.

Kudankulam 4's pressure vessel is lifted into place (Image: Rosatom)

The company said the installation was carried out on 24 January using the "open top" method, first used at Kudankulam 3. This involves installing the component while the reactor dome is still open, which can significantly cut the time taken to carry out the installation. On the day of the installation, the equipment was moved to a vertical position, then lifted by crane to a height of 50 metres and lowered into the reactor shaft of the reactor building.

The pressure vessel, weighing in at over 317 tonnes, was delivered from Volgodonsk in Russia to the Kudankulam construction site in 2023 as part of an "unprecedentedly complex and large-scale" simultaneous shipment of two reactor vessels and eight steam generators for plants under construction in India and China, according to Rosatom.

After installation of the reactor vessel, installation of components for the nuclear steam system including steam generators, housings of the main circulation pump units and a pressure compensator will begin.

Kudankulam is home to two operating Russian-supplied VVER-1000 pressurised water reactors which are owned and operated by the Nuclear Power Corporation of India Ltd (NPCIL). Four further VVERs are under construction: work started on units 3 and 4 in 2017, and on units 5 and 6 in 2021. A fourth phase comprising two VVER-1200 reactors - Kudankulam 7 and 8 - has been proposed.

The general contractor is for the project is Rosatom subsidiary Atomstroyexport, the general designer is Atomenergoproekt and the general designer is OKB Gidropress.


Researched and written by World Nuclear News

CHILE
Adionics’ direct lithium extraction testing at SQM’s Atacama salar shows high recovery rates

Staff Writer | February 5, 2024 |

SQM already has a deal with Codelco to mine lithium in northern Chile. (Image courtesy of SQM.)

Direct lithium extraction (DLE) technology company Adionics on Monday announced the successful completion of 1,500 hours of lithium extraction tests from brine using their pilot plant in Chile installed on the premises of SQM, the world’s No. 2 lithium producer.


The lithium giant runs the world’s biggest and most profitable brine operation in Chile’s northern desert with a contract that expires in 2030, but last year said it expects to reach an agreement to continue producing the battery metal under the Chilean government’s new public-private model for the industry.

The tests were conducted during the second half of 2023 on five different brines from the Salar de Atacama, demonstrating the efficacy of the technology using a customized proprietary liquid formulation, Flionex.

The brines tested displayed a wide range of lithium concentrations. The results revealed lithium recovery rates of up to 98% and lithium chloride purity up to 99%, the company said.

With Flionex exhibiting remarkable selectivity, capturing lithium while leaving out boron, magnesium, potassium and sulfates, the remaining impurity profile consisted only of a limited amount of both sodium and calcium chlorides, highlighting the ability to achieve the level of purity required to produce battery-grade lithium carbonate, Adionics said.

The tests demonstrate the operability and stability of the technology in real and not just controlled conditions, including changes in feed brine composition, fluctuating day and night temperatures, at high altitude, demonstrating full industrial readiness, it added.

“Our team’s commitment to innovation and sustainable practices is reflected in the outstanding performance of our technology,” Adionics CEO Gabriel Toffani said in a news release. “With lithium recovery rates and purity that set new industry benchmarks, we’re not just extracting lithium, we’re setting the stage for a cleaner, more efficient future in energy storage.”
Guinea approves joint development deal for Simandou iron ore project

Reuters | February 4, 2024 | 

Simandou project area. (Image by Rio Tinto.)

Lawmakers in Guinea approved on Saturday a joint development deal for its giant Simandou iron ore project involving the junta-led government, Rio Tinto, and Winning Consortium Simandou, the lawmaking body’s spokesperson said.


Simandou, set to be the world’s largest and highest grade new iron ore mine, has been the subject of prolonged negotiations due to its complex ownership structure, delays caused by legal wrangling, Guinea’s political upheaval and difficulties around construction.

The National Transition Council, which acts as parliament under Guinea’s interim regime, voted to approve laws that ratified the agreement, which envisages the completion of construction by end-2024, council spokesperson Mory Dounoh told journalists after the vote.

Rio Tinto owns two of four Simandou mining blocks as part of its Simfer joint venture with China’s Chalco Iron Ore Holdings (CIOH) and the government of Guinea. Rio Tinto holds a 53% stake, while CIOH holds the rest.

The two other mining blocks are being developed by Winning Consortium Simandou (WCS), made up of Singapore-based Winning International Group, Weiqiao Aluminium – part of the China Hongqiao Group – and United Mining Suppliers.

(By Saliou Samb and Alessandra Prentice; Editing by Emelia Sithole-Matarise)
MONOPOLY CAPITALI$M
De Beers expands presence in Angola’s diamond sector

Cecilia Jamasmie | February 6, 2024 |

Angola’s Catoca is the world’s fourth biggest diamond mine. (Image courtesy of Endiama.)

De Beers, the world’s largest diamond producer by volume, has inked a series of agreements with the Angolan government, including one with state-owned diamond miner Endiama, covering processing and exploration prospects.


The pacts between the parties build on exploration contracts signed in 2022, which marked the return of De Beers to the country it left in 2012.

“We believe this is a real step forward in our cooperation,” chief executive Al Cook said during the signing ceremony in Cape Town, South Africa.

Among the agreements inked by De Beers, a unit of Anglo American (LON: AAL), there is one with Angola’s national diamond trading company Sodiam, which seeks to ensure the use of best practice on sorting and processing rough diamonds mined in the country.

Other joint activities include reviewing several kimberlite deposits to reassess their economic attractiveness through the application of new De Beers technologies and promoting transparency and traceability of diamonds produced in Angola. The parties will also work together to identify opportunities to build local community capacity by leveraging De Beers’ Building Forever sustainability framework.

Al Cook, De Beers CEO and Ganga Júnior, Endiama CEO. 
(Image courtesy of De Beers Group.)

Angola has long been a hot spot for diamond finds, but most companies, including De Beers, left in the early 2000s.

Rio Tinto (ASX: RIO) came back to Angola in 2019, on condition to own 75% of the initial phase of any mine developed with Endiama. The contract lets Endiama boost its stake to 49% in the future.

Angola – the world’s sixth-largest diamond producer according to Kimberley Process statistics – generated 8.7 million carats in 2022, down from 9.3 million carats the previous year.
SAVING THE AMAZON
Brazil prosecutors seek annulment of contract for Belo Sun gold mine
Reuters | February 6, 2024 | 

The Volta Grande project consists of an open pit, a gold recovery process facility, water and tailings management and supporting infrastructure.
 (Image taken from Belo Sun’s presentation.)

Brazilian federal prosecutors asked a judge to annul a contract between Canadian miner Belo Sun and Brazil’s land rights agency to build a gold mine valued at 1.2 billion reais ($242 million), according to a legal document seen by Reuters.


The controversial mining project is located in Brazil’s Amazon rainforest, near the Xingu river in northern Para state.


The request of prosecutors to end the project is part of a lawsuit over land rights originally filed by public defenders in 2022.

The document, dated Jan. 30, indicated that prosecutors back the right of families living in settlements near where the mine would be built to be consulted on the project before any decision allowing it to proceed.

Belo Sun did not immediately respond to a request for comment.

The company has previously valued the project at 1.2 billion reais, but its future has been clouded due to controversy over potentially harmful environmental impact.

The prosecutors request is the latest obstacle faced by Belo Sun’s would-be mining project.

A separate judge previously ruled that in order for the project to advance, its environmental licenses must first be approved by federal environmental protection agency Ibama, not state officials.

Ibama has yet to issue a decision on the licenses.

($1 = 4.9590 reais)

(By Ricardo Brito and Andre Romani; Editing by Lincoln Feast)
Rio Tinto unit faces criminal case in Canada over injured worker

Reuters | February 5, 2024 | 

Aerial view of Diavik diamond mine.
 (Image courtesy of Dominion Diamond.)

A Canadian unit of global mining company Rio Tinto is facing a criminal case after an employee was seriously injured at an Arctic diamond mine, according to an announcement by local authorities.


The accident took place on Jan 26, 2003 at the Diavik mine, which is located about 200 km (125 miles) south of the Arctic Circle in the Northwest Territories, the local Workers’ Safety and Compensation Commission (WSCC) said.

The WSCC has filed a case against the mine and the next step is a hearing on March 19 at the criminal court in Yellowknife, the capital of the Northwest Territories. The WSCC revealed the case in a statement issued on Friday.

“Diavik Diamond Mine is charged with multiple counts alleging violations of the Mine Health and Safety Act, including failure to implement and maintain safe work practices, and failure to take every reasonable measure to protect the health and safety of their employees, as well as other offences,” it said, but gave no details of the accident.

Rio Tinto said in a statement on Monday that Diavik took the health and safety of its employees very seriously. It declined to comment further, given the criminal case.

Six people died last month after a small plane carrying Rio Tinto workers crashed near Fort Smith in the Northwest Territories, shortly after taking off for Diavik. Four of those were employees of Rio Tinto.

In 2022, Rio Tinto reported zero fatalities and had an all injury frequency rate – the number of all injuries per 2,000,000 hours worked – of 0.40, the same as the previous year.

The company’s annual report said that in 2022, the number of potentially fatal incidents rose to 19 compared to 16 in 2021.

(By Divya Rajagopal; Editing by David Ljunggren and Nick Zieminski)
Gates, Bezos-backed KoBold Metals says Zambia copper find largest in a century

Cecilia Jamasmie | February 5, 2024 |

KoBold Metals is involved in nearly 60 explorations projects across three continents. (Image courtesy of KoBold Metals.)

KoBold Metals, backed by a coalition of billionaires including Bill Gates and Jeff Bezos, said on Monday its Mingomba asset in Zambia is the country’s largest copper deposit in a century and that it plans to fast-track its development.


The California-based startup has been drilling at its Zambian permit for a little over a year. During this time, KoBold president Josh Goldman said they have confirmed the “huge” size of the deposit.

Mingomba is shaping up to be “extraordinary,” he said, adding that the potential of the discovery compares to that of the Kamoa-Kakula mine, owned by Ivanhoe Mines and China’s Zijin Mining. This operation, located just across the border in the Democratic Republic of Congo (DRC), produced almost 400,000 tonnes of copper last year.

“The story with Mingomba is that it’s like Kakula in both the size and the grade,” Goldman said on the sidelines of Indaba mining conference in South Africa, according to Bloomberg. “It’s going to be one of the highest grade, large underground mines.”

KoBold bought into the project in 2022, via a joint venture with its existing owners – Australian private equity firm EMR Capital and Zambia’s state-owned mining investment vehicle ZCCM-IH (LON: ZCC).

KoBold still plans to have the $2 billion underground copper mine in Zambia built within the decade, with first production in the early 2030s, but it needs to update resource estimate and complete feasibility studies before it makes the decision to go ahead.

Goldman is not worried about securing capital. “The issue globally, is not a lack of availability of capital. It is a lack of availability of high quality projects and where there are returns, there is capital,” he said. “For a great project, there will be capital.”

If built, the Mingomba project would align with the vision of Zambia’s President Hakainde Hichilema to increase the nation’s copper production to three million tonnes by 2032 to help the country reduce its debt burden.
From Canada to the world

The company is not just focused on copper, but rather all minerals and metals considered critical for the energy transition.

It began its quest for battery metals began three years ago in Canada, after it acquired rights to the area in northern Quebec, just south of Glencore’s Raglan nickel mine, where it detected lithium.

The start-up now has about a dozen exploration properties in places including Zambia, Namibia, DRC, Quebec, Saskatchewan, Ontario, and Western Australia, which have resulted from joint ventures with BHP (ASX: BHP) and with BlueJay Mining (LON: JAY) to explore for minerals in Greenland.

It also has exploration activities underway in South Korea and the United States and, in December, it launched a four-continent search for lithium deposits.

Using artificial intelligence, Kobold aims to create a “Google Maps” of the Earth’s crust, with a special focus on finding copper, cobalt, nickel and lithium deposits.

It collects and analyzes multiple streams of data — from old drilling results to satellite imagery — to better understand where new deposits might be found.

Algorithms applied to the data collected determine the geological patterns that indicate a potential deposit of cobalt, which occurs naturally alongside nickel and copper.

The technology, KoBold said, can locate resources that may have eluded more traditional geologists and can help miners decide where to acquire land and drill.

Goldman noted the company was considering going public in the next three or four years.

GATES-BEZOS-KOBOLD


Silicon Valley Startup Claims Massive Copper Discovery in Africa

  • Kobold Metals uses artificial intelligence to explore the Earth’s crust to find metals and critical minerals for the energy transition.

  • KoBold Metals has announced what it says is a huge copper deposit discovery in Zambia.

  • A spokesperson for the California company told CNBC this week that the project “will be one of the world’s biggest high-grade large copper mines.

A Silicon Valley firm dubbed KoBold Metals has announced what it says is a huge copper deposit discovery in Zambia—one of the biggest producers of the metal in Africa.

Kobold Metals uses artificial intelligence to explore the Earth’s crust to find metals and critical minerals for the energy transition. The company has the financial backing of Jeff Bezos and Bill Gates, as well as Richard Branson and Ray Dalio, among others.

Per its own website, Kobold Metals aims to accelerate the “clean energy future” by securing the metals and minerals that this future will need in significant quantities. It does that by using AI to explore for these metals and minerals.

It now appears that this use of AI has paid off in the Mingomba project in northern Zambia—near the border with the Democratic Republic of Congo, on whose other side sits the Kamoa-Kakula copper mine, one of the largest in the world.

A spokesperson for the California company told CNBC this week that the project “will be one of the world’s biggest high-grade large copper mines.” It is indeed a timely discovery since the energy transition essentially rides on copper, and new mine openings are a rare occurrence these days.

KoBold started making plans for the Mingomba project last year before it confirmed the scale of the deposit. Reuters reported in September, citing company executives, that KoBold planned to put $150 million into speeding up the exploration work on the project. The rush was motivated by the urgent demand for more copper.

Indeed, there have been a lot of warnings from the mining industry and energy analysts that a copper shortage could interfere with the planned pace of the energy transition. This has added to worries that the targets set out by various countries will remain elusive despite the amount of effort invested into pro-transition regulation and attempts at eliminating competing technologies via ICE car bans and gas boilers.

Yet despite these warnings, ramping up the global output of the basic metal has been challenging for several reasons. One is that a new mine takes a lot of upfront investments, and somebody has to come up with it. To come up with it, investors need to be sure there will be a return on this investment, and miners have become extremely cautious when it comes to such investments—because copper prices do not justify them.

This is the paradox of the copper market right now. Everyone seems to believe that a shortage is looming as demand skyrockets, with millions of EVs envisioned on roads and millions of wind and solar farms covering the planet’s surface. But copper prices don’t follow these visions—they follow economic indicators that could point traders to where the global economy is going. And those indicators are not flashing green right now, it seems.

There is also the problem of forecasts versus reality. It is true that EV sales are rising, but they are rising nowhere near fast enough for the forecasters that saw them going mainstream years ago. What’s more, EV makers are scaling back their manufacturing plans on weakening demand. That’s not exactly motivating for miners.

This appears to be the reason why KoBold Metals is using private capital to finance its exploration and development work in Zambia. The company said soon after its discovery announcement that it might look for partners to shoulder the $2-billion financial burden of turning the Mingomba discovery into a producing mine. This, according to the company, should take about a decade—highlighting one of the insurmountable obstacles along the way of higher copper supply.

Copper mines are not shale wells. They cannot start producing a few months after breaking ground. Copper—and all other—mines take years to turn into a production facility. Perhaps all those upbeat transition forecasters should have factored this into their forecast for a more comprehensive, realistic picture of the transition. 

By Irina Slav for Oilprice.com


Zambia set to negotiate bigger stakes in new mining projects

Reuters | February 6, 2024 

The Sentinel open-pit copper mine in Zambia. 
(Image courtesy of First Quantum Minerals.)

Zambia is keen to negotiate larger holdings in new mining projects in order to raise its revenue and boost spending by investors on social projects, mines minister Paul Kabuswe said.


The push by Lusaka through state-owned ZCCM-IH would apply to future agreements, but does not include existing mines and should not unnerve investors, Kabuswe told Reuters.

Zambia is Africa’s second-largest copper producer after neighbouring Democratic Republic of Congo and ZCCM has interests of 10% to 20% in mines including those owned by Barrick Gold, Vedanta Resources and First Quantum Minerals.

ZCCM sold a 51% stake in Mopani Copper Mines to a unit of United Arab Emirates’ International Holding Company, retaining the remainder, which previously belonged to Glencore.

“Stakes in new tenements will actually be moulded around such kind of partnerships,” Kabuswe said in an interview on Tuesday on the sidelines of the Africa Mining Indaba.

“We want to make sure that there is win-win, that there is no slave-master relationship and we also want to make sure that there’s social impact,” he added.

While Zambia’s government has set a copper production target of about 3 million metric tons within a decade, output has been declining gradually due to challenges at some operations including Mopani and Konkola Copper Mines.

“We are going to be very strong in negotiations,” Kabuswe said. “But not too strong to the extent of scaring away potential investors.”

Lusaka also plans to start buying minerals such as copper from projects it has stakes in to trade on its own, he said.

While the details of establishing a trading house are still to be worked out, a special purpose vehicle had been approved by the Zambian cabinet, Kabuswe said.

The Zambian government is also closely following developments on First Quantum’s Panama mine and hopes the challenges the Canadian miner is facing are resolved.

First Quantum has not informed the government of any plans to sell or bring in a strategic investor, he added.


“We are looking closely,” Kabuswe said. “But looking closely not in a negative sense, but hoping that things around them can be resolved so that it doesn’t affect ourselves.”

(By Felix Njini and Veronica Brown; Editing by Alexander Smith)


Zambia to start trading its own copper, competing with Glencore

Bloomberg News | February 5, 2024 | 

Lumwana is located in Zambia’s Northwestern Province. 
(Image courtesy of Barrick Gold.)

Zambia plans to directly buy and sell a portion of the copper produced in the southern African nation, competing with trading giants including Mercuria Energy Group Ltd. and Glencore Plc.


“We obviously want to do it in a way that’s fair, that’s commercially suitable for the mining companies,” Jito Kayumba, President Hakainde Hichilema’s senior economic adviser, said in an interview on Monday. “To say that we can come as a commercial player to compete with the other commodity traders, to make financing available for the mines for us to have a fair share of the resource.”

Zambia joins neighbors including Botswana and Democratic Republic of Congo in trying to secure greater economic benefits from its mineral wealth through getting access to the commodities to sell directly to buyers. While the government has shareholdings in some mines, it’s argued for decades that state revenues from them are too low.

Companies including First Quantum Minerals Ltd. and Barrick Gold Corp. operate mines in Zambia, Africa’s second-biggest copper producer.

The government could start with a limited amount of about $100 million and build its trading business, Kayumba said at the Investing in African Mining Indaba conference in Cape Town. It could have legislation ready in the next three to six months, he said, adding the government may opt to receive physical metals instead of royalties from some mines.

“We’ve reached the point where we have to be disruptive. Our benefits from the sector has been quite minimal,” Kayumba said. “There’s a lot of financial engineering, call it creative accounting — transfer pricing reduces our chances of getting a good dividend.”

The government will hire the necessary expertise to start trading its copper, and shouldn’t struggle to compete as it has direct access to the resources, according to Kayumba. The move will open a window into the financial world of commodity trading and help the government see how much profit from its copper remains abroad — some of it in countries like Switzerland, where commodity traders including Glencore are based, he said.

“It gives us transparency,” Kayumba said. “We’ll see ‘Ah! That’s what happened in Switzerland’.”

The European country accounts for about 46% of Zambian export earnings, according to official data.

(By Matthew Hill)

Anglo American explores for copper, cobalt in Zambia

Reuters | February 5, 2024 | 


Aerial view of Victoria falls, Zambia. Stock image.

Anglo American is in the early stages of exploring for copper and cobalt in Zambia’s North-Western province, its chief executive officer Duncan Wanblad said on Monday.


“Zambia’s mining sector appears to be on track for renewed activity – and that is good for Zambia and African mining,” Wanblad told delegates at the African Mining Indaba in Cape Town.

“I am pleased that we are progressing with early-stage exploration in Zambia’s North-Western Province to identify potential copper and cobalt opportunities.”

However, Wanblad also said much more needed to be done to make a compelling argument for Africa given intense global competition.

“We sometimes forget this simple truth: mining jurisdictions across the world are competing for every dollar of investment. Capital is highly mobile and, increasingly, as we are all seeing, the best capital will go to those countries that are set on making themselves competitive for the long term.”

Anglo American aims to cut capital expenditure by $1.8 billion by 2026, as it grapples with a fall in demand for most of the metals it mines and a writedown for its British fertilizer project.

The company joined peers, including Rio Tinto, Teck Resources and Glencore, in reporting lower profits and returns in the first half of the year, as reduced economic growth hit commodity prices.

(By Olivia Kumwenda-Mtambo, Felix Njini, Bhargav Acharya and Veronica Brown; Editing by Alexander Winning and Barbara Lewis)
South African platinum industry could shed up to 7,000 jobs to cut costs
Reuters | February 5, 2024 | 

Sibanye’s Kloof operation. (Image courtesy of Sibanye-Stillwater.)

Restructuring of South Africa’s platinum group metals (PGM) industry in response to rising costs and falling prices could result in between 4,000 and 7,000 job cuts, the country’s Minerals Council said on Monday.


South African PGM miners, home to around 70% of global mined platinum output, are discussing the need to restructure unprofitable production, the council said at the start of the Investing in African Mining Indaba conference in Cape Town.


The Minerals Council said the sector, largely dependent on automakers’ use of PGMs to curb exhaust emissions from engines, faces “a great deal of uncertainty” as the world pivots towards electric vehicles.

Top global PGM producer South Africa has some of the world’s oldest and deepest platinum mines, which are expensive to operate, especially when metal prices are low.

The prices of palladium and platinum fell by 40% and 15% last year, respectively, mainly because of weak demand in China.

Electricity and labour costs account for most of PGM miners’ total costs, the Minerals Council said in a statement.

“In light of this, various prominent PGM miners are restructuring their operations potentially impacting between 4,000 to 7,000 jobs,” it added.

Anglo American’s CEO Duncan Wanblad told delegates at the Indaba that margins for mining companies facing declining ore grades and sharply increased input costs “evaporate quickly”.

“What matters is the industry’s and government’s ability to navigate these challenges to ensure that the industry does survive and prosper – yes with smaller direct workforces, and this is a reality that the industry is contending with right now,” he said in a speech at the Cape Town conference.

Anglo’s South African PGM unit Anglo American Platinum (Amplats), which employs over 20,000 workers in South Africa, is reviewing costs.

Anglo American as a whole aims to cut capital expenditure by $1.8 billion by 2026, after reporting lower profits and returns for the first half of the financial year.

Sibanye Stillwater, South Africa’s biggest mining sector employer, has also said its planned restructuring could lead to the closure of four loss-making PGM shafts and the loss of 4,095 jobs.

Impala Platinum said it was offering voluntary job cuts to workers at its South African operations.

(By Olivia Kumwenda-Mtambo, Nellie Peyton, Nelson Banya and Clara Denina; Editing by Alexander Smith, Veronica Brown and Barbara Lewis)
IMPERIALI$M

Canadian government aims to support First Quantum after mine closure, minister says

Reuters | February 6, 2024 |

Cobre Panama copper mine. (Image courtesy of Franco-Nevada assets handbook.)

The Canadian government will do its best to support First Quantum Minerals, the trade minister said on Tuesday without elaborating, as the Canadian miner deals with the fallout from the closure of its flagship copper mine in Panama.


“First Quantum Minerals is a really important Canadian company,” Trade Minister Mary Ng told reporters in Ottawa.


“I’ve met with them, I continue to meet with them, and really, I’m really looking to supporting the Canadian company … as best as we can,” Ng said.

Large protests erupted last year against First Quantum’s contract to operate a lucrative Cobre Panama mine that was approved by the Panama government in October. Protesters argued it was too favorable to the Vancouver-based company.

In November, the Central American country’s top court ruled the contract unconstitutional, prompting the government to order the mine to shut down.

The Panama copper mine accounted for about 40% of First Quantum’s revenue and its closure led to a near-halving of the company’s market value.

First Quantum is now exploring options to “manage its balance sheet,” which include selling smaller mines, bringing strategic investors into its larger mines and evaluating ways to raise funds. It has also initiated international arbitration over the contested Cobre Panama contract.

Ng said Ottawa was monitoring the situation closely and she had been in contact with her Panamanian counterpart about First Quantum.

“I will stand up for Canadian companies where they operate, and First Quantum has operated in Panama for many years,” Ng said.

(By Ismail Shakil; Editing by Deepa Babington)


France extends New Caledonia nickel rescue talks

Reuters | February 5, 2024 |

Credit: Eramet

France will continue talks until the end of February to save New Caledonia’s nickel industry, the finance ministry said on Monday, after failing to reach a deal last month to fill a massive funding shortfall for the territory’s nickel processors.


New Caledonia has some of the world’s largest nickel reserves but high costs and political tensions in the French-controlled Pacific territory have left its three processing plants on the verge of collapse.


The French government has held talks on nickel in parallel to wider political negotiations with pro-independence and loyalist political parties. Finance Minister Bruno Le Maire said in late November he wanted a nickel deal by the end of January.

“The talks will continue until the end of this month,” a finance ministry spokesperson said, adding: “Later than that is not possible because the financing needs are immediate.”

Le Maire has estimated at 1.5 billion euros ($1.61 billion) the short-term financing needs of New Caledonia’s three nickel processing groups – SLN, KNS and Prony Resources.

Commodities group Glencore, which co-owns KNS, has said it will only provide funding for the firm until the end of February, while French miner Eramet has repeatedly said it will not provide more funding for SLN, in which it holds a majority stake.

A working group of political and industry representatives that has led the negotiations said in a progress report last month that falling nickel prices meant measures proposed so far still left a significant funding gap for 2024.

It called on current shareholders to consider extra financing.

Prony Resources, meanwhile, said in a statement last month it was seeking “a core shareholder” to boost its financing.

Prony has a number of minority shareholders including commodity merchant Trafigura with a 19% stake.

Glencore, Eramet and Trafigura each declined to comment on the talks.

Discussions have sought to address the unprofitability of nickel processing in New Caledonia through plans to improve mining productivity and subsidise energy costs.

The French government’s representative in New Caledonia last week said an emergency loan for the processing firms was also under discussion.

($1 = 0.9314 euros)

(By Gus Trompiz, Clara Denina and Melanie Burton; Editing by David Gregorio)

 

Samsung Heavy Industries Books Largest Order as Korean Shipbuilders Rebound

Samsung shipbuilding Korea
Samsung Heavy Industries booked its largest order ever with LNG carriers linked to Qatar (file photo)

PUBLISHED FEB 6, 2024 6:13 PM BY THE MARITIME EXECUTIVE

 

 

South Korea is highlighting a strong rebound in its shipbuilding industry with the second largest company, Samsung Heavy Industries, reporting it has signed the largest order in the company’s history. The new order, which rivals the largest order ever placed in South Korea, comes as the companies are reporting a strong start to 2024 and improving financial results.

SHI signed an order for 15 new LNG carriers each with a capacity of 170,400 cbm. The company highlighted that the order will be delivered by October 2028 giving it steady work for the next five years. Although they did not officially confirm the buyer saying only it is a “Middle East shipowner,” the deal is part of the ongoing expansion program being driven by QatarEnergy. SHI was reported since October 2023 to be negotiating the terms of the order based on the 2020 slot reservation from QatarEnergy.

The new contract is being valued at approximately $3.4 billion which exceeds the previous largest order received by SHI in July 2023 from Evergreen for 16 methanol-fueled containerships which was valued at around $3 billion. The largest order ever received by the South Korean shipbuilders went to HD Hyundai in October 2023 for 17 LNG carriers valued at $3.9 billion and providing work for HD Hyundai till 2029.

The closing of the order by SHI was the next step in QatarEnergy’s long-term expansion program tied to the development of the new North Field. In the first phase of the program, QatarEnergy was linked to 60 LNG carrier orders. The second phase began with the 17 to be built by HD Hyundai and was followed in January by an order for six of the world’s largest LNG carriers to be built in China. Hanwha Ocean is believed to be finalizing the next order which will also involve 15 ships. Rumors in Korea are that this order will be finalized by March.

SHI highlights that with the new order, it has booked 17 ships in the first weeks of 2024 with a value of $3.7 billion, which is nearly half of its entire orderbook for 2023. Last year, SHI booked orders valued at $8.3 billion falling short of its annual target. Despite that, company officials are highlighting that they now have a backlog of 90 LNG carriers.

Rival HD Korea Shipbuilding & Offshore Engineering reports that its operation is off to an even stronger start to 2024 which may cause the company to raise its forecast for the year. In the first weeks of the year, the shipbuilding holding company reports its three shipbuilders have booked a third of its annual forecast. They have contracted 38 ships with a total value of $4.65 billion with the annual target set at $13.5 billion. 

The holding company had lowered its forecast for 2024 versus 2023 citing economic concerns and the outlook for the shipping industry. Last year, the company’s target was $15.7 billion but on the strength of the industry, they ended the year with $22.3 billion in orders including the QatarEnergy mega order. 

HD KSOE highlights that the new segment for large ammonia carriers is contributing to its growth in 2024. Since 2021, the company has booked orders for 74 large gas carriers, including LPG and ammonia, which is 56 percent of the global market. Since January, the company has booked orders for 11 ammonia carriers. 

The strength of the market permitted KSOE to swing to a profit for the full year 2023. The company reported today that it had a net profit for the year of $109 million versus a loss of over $222 million in 2022. Full-year revenues were up more than 23 percent. 

Despite the strong year, KSOE reported a fourth-quarter net loss of $67 million. The company however had an operating profit of $121 million and a sales increase of more than 21 percent. KSOE is the holding company for three shipyards and other operating companies. One of the shipyards, HD Hyundai Heavy Industries however reported a profit for the fourth quarter. It had a net income of $23 million in the quarter versus a loss of $121 million in Q4 2023. Operating profit at the shipyard was up more than 500 percent on a 27 percent increase in revenues.

Samsung Heavy Industries highlighted the improving financial picture for its operations and the industry predicted that “an orientation towards profitability in selecting orders will gain momentum.” Earlier in the year, media reports suggested that Hanwha Ocean was stopping future containership orders to focus on the more profitable market segments, but the company denied those reports.