COBALT EV RARE EARTH METAL

Jervois Global cuts jobs due to market flooding

Jervois is cutting up to 30% of senior staff due to falling profits

Kit Million Ross

March 8, 2024

Jervois Global has announced job cuts, blaming Chinese oversupply.

 Credit: iurii via Shutterstock.

Australian mining company Jervois Global is implementing cost-cutting measures and reducing jobs due to a significant slump in cobalt prices, which it attributes to oversupply from China.

In a filing with the stock exchange, the cobalt and nickel producer announced the elimination or conversion to part-time status of 30% of its senior corporate management positions. Additionally, fees for non-executive directors have been reduced by the same percentage.

Jervois also disclosed that approximately 5% of its workforce at its project in Finland have been laid off.

In a press release on the company’s website, Jervois said that bonuses will not be paid to its CEO, and corporate salaries will be frozen throughout 2024. In the same press release, the company pinned the blame for its falling profits on “adverse cobalt market conditions caused by Chinese overproduction and its impact on pricing”.

China processed around 80% of the global cobalt supply last year, and the Democratic Republic of Congo (DRC) and Indonesia have also been producing more of the metal, which is a vital part of many modern battery systems.

As a result of the news, Jervois saw its stock price plummet. Prices hit a low of A$0.03 on the Sydney Stock Exchange as of 11:35 local time. This is a significant dip from Jervois’ peak stock price of April 2022, which hit a high of A$0.96.

A recent GlobalData report predicted that global cobalt production levels are expected to rise for the fourth year in a row. Production is expected to hit 231.5 kilotonnes in 2024, an increase of 6.5% from 2022 levels. According to the report, “increased supply from the DRC and Indonesia will primarily support the growth in 2024”, with the restart of the DRC’s Kinsanfu mine in mid-2023 being a major contributor to the country’s output rise.

GREENWASHING

LME partner Metalshub plans for ‘green’ nickel price

Reuters | March 6, 2024 | 

The London Metal Exchange (LME) does not plan to launch a separate “green” nickel contract because the market is not large enough, but said its partner was developing an index price that will reflect demand for low carbon nickel.


Calls for a nickel price that reflects strong environmental and governance standards have grown from high-cost producers such as Australia, where low prices have forced miners to shutter operations due to a flood of Indonesian supply, most of which is produced using coal.

“Market participants have expressed concern that there remains significant market debate as to how to define ‘green’,” the LME said in a statement.

“Further, that an LME contract representing a narrower sub-segment of the market would not attract sufficient stocks and trading volumes to be viable.”

The LME sees limited appetite for contracts for segments of the nickel market, so-called class 2 materials, such as nickel sulphate, matte and other materials. Its nickel contract, so called class 1 refined nickel, has a purity of 99.8 pct and above.

Last week, Australian mining magnate Andrew Forrest, chairman of Fortescue, said the LME should classify its nickel contracts into “clean” and “dirty” to give customers more choice.

Canada this week joined Australia in calling for robust ESG credentials to be built into global supply chains for critical minerals, Australia’s resources minister, Madeleine King, who is visiting Canada this week, said in a joint statement.
Green specs

While the market is not yet liquid enough to accommodate a green premium, MetalsHub has moved to build an index price that reflects consumer demand for green nickel.

The LME has classified low carbon nickel as that for which a single ton can be produced for 20 tons of carbon dioxide equivalent (C02e) or less, it said. Currently, the carbon footprint for a ton of LME nickel varies from 6 tonnes to more than 100 tons of C02e.

Already, any class 1 nickel on the Metalshub platform, which counts Outokumpu and Aperam among its users, can be listed with specific ESG credentials, including its carbon footprint, which allows buyers to filter for carbon intensity.

“This functionality is in place today and there is no need to split the LME contract to assess a ‘green’ premium,” Metalshub managing director Frank Jackel told Reuters.

From this month, Metalshub will start reporting monthly data that includes trades of low carbon carbon nickel, the LME said.

As traded volumes increase, it plans to publish a low carbon index price that could eventually grow to become a “green” nickel premium index reflecting additional sustainability metrics, the LME said.

“CO2 footprint and ESG performance will play an important role and it gives producers the opportunity to market their products with a premium if the market is willing to pay it,” Jackel said via email, adding that Metalshub was keen to work with Australian miners.

(By Eric Onstad and Melanie Burton; Editing by Clarence Fernandez)

Global producers call for LME to introduce green premium for cleaner nickel

Calls for a differentiation between higher and lower-quality nickel come as Indonesian dominance continues to drive a price crisis in the industry.

Annabel Cossins-Smith

March 7, 2024

Andrew Forrest has been pushing the London Metal Exchange (LME) to formally distinguish between poor-quality nickel and cleaner supplies. 

Credit: Sean Gallup/Getty Images.

Mining companies have called for a green price premium to be introduced for sustainably produced nickel traded on the LME as the global sector scrambles for recovery.

Australian mining major BHP and metals magnate Andrew Forrest, the Australian billionaire that owns miner Wyloo Metals, have been pushing the LME to formally distinguish between poor-quality nickel and cleaner supplies.

“We have got to differentiate between dirty nickel and green nickel. The LME must differentiate between dirty and clean. They are two different products, they have two vastly different impacts,” Forrest told reporters at a briefing in Australia.

The move comes as the sector tries to combat an ongoing price crisis arising from an abundance of low-quality, cheap supplies from Indonesia. However, now miners in the country are looking to list their metal as high quality.

On Tuesday, Chinese-Indonesian nickel producer PT CNGR Ding Xing New Energy applied to have its metal supply listed as a ‘good delivery brand’ on the LME for the first time in history, sparking discomfort among western producers.

The LME is likely to approve the request as part of its recovery plan for the nickel market, which is also still reeling from a price crash in 2022.

Last month, BHP chief executive Mike Henry said on an earnings call with reporters that it would “seem sensible” to see a price premium for sustainably sourced nickel. A spokesperson for the miner has said that “an increasingly well-known range of ESG [environmental, social and governance] and responsible sourcing challenges currently exist” in Indonesia.

The Australian market in particular has suffered. Several major miners have suspended or pulled out of nickel operations as a direct result of the drawn-out price slump and subsequent poor profits. Last month, BHP announced plans to shut down its nickel operations in Western Australia citing a lack of hope that prices will recover sufficiently in the short and medium term.

In January, miner First Quantum announced that it will cut production at its Australian nickel mine and slash its workforce amid poor profits. Mining giant Glencore also announced last month that it will sell its entire stake in the Koniambo Nickel SAS joint venture in New Caledonia, which has never turned a profit despite funding interventions from the French Government.

Global miners are now worried that Indonesia’s low-cost nickel supply will wipe out rivals within the next few years and could eventually account for more than three-quarters of the world’s high-quality nickel, if listing on the LME is to go ahead.

The LME told the Financial Times it supports the industry on “several sustainability measures to ensure transparency throughout the supply chain”. It added that low-carbon nickel is listed on its Metalshub platform and “the transaction data supports identification of a credible ‘green premium’ to the LME price”.

Panama asks First Quantum to suspend visitor program at disputed copper mine

Reuters | March 7, 2024 | 

Cobre Panama site. Photo by First Quantum Minerals.

Panama said on Wednesday it had asked First Quantum Minerals to suspend a visitor program launched last month at the disputed Cobre Panama mine, saying the miner did not consult the government before starting the community relations initiative.


The Canadian miner announced the program to help the Panamanian society to get a first-hand experience of what was happening at the site of the copper mine, according to a post from the company’s Panama unit on social media platform X.

“The ministry informed them (First Quantum) that these type of decisions, not only the visits but any other activity, needs to be previously consulted with the trade ministry or the appropriate entity,” Jorge Rivera, Panama’s Trade Minister said on Wednesday.

First Quantum did not immediately respond to a request for comment.

The Panama government and First Quantum are at odds over the future of the Cobre Panama mine, one of the newest and biggest copper mines in the world. The Central American nation ordered the shutdown of the mine late last year after public protests over environmental concerns.

First Quantum said last month the community relations program was announced after an opinion poll by Gallup found that about half of those interviewed expressed interest in visiting the mine.

The mine’s activity represented about 5% of the country’s gross domestic product, and Panama’s GDP growth in 2024 is expected to slow to 2.5% from 7.5% due to its closure, according to the International Monetary Fund.

Cobre Panama accounted for about 40% of First Quantum’s 2023 revenue and the suspension has was wiped out about half of First Quantum’s market value since the protests started, forcing the company to take a series of capital restructuring measures to manage its debt load.

The company is seeking $20 billion from the Panama government through international arbitration.

First Quantum shares fell 3.8% on Thursday, while the benchmark Canadian stock index rose 0.9%.

(By Divya Rajagopal, Elida Moreno and Valentire Hilaire; Editing by Jamie Freed)



First Quantum opens Panama mine for public visits

The Canadian miner hopes to win public support for the operation of Cobre Panamá.

Alfie Shaw

March 6, 2024

The Cobre Panamá mine is located 120km west of Panama City. 

Credit: LUIS ACOSTA/AFP via Getty Images.

First Quantum Minerals is opening its Panamanian copper mine for public visits in an attempt to gain support for restarting operations under the next government.

The Canadian mining company was forced to close the Cobre Panamá copper mine last year following weeks of civilian protests that led to suspension of operations, and the ensuing Supreme Court ruling that First Quantum’s contract to mine was unconstitutional. Activists were opposed to alleged damage the mine was causing to Panama’s ecosystem.

Robert Harding, chairman of First Quantum, told Bloomberg in an interview on Monday that the Cobre Panamá mine had signed up around 1,000 people so far to tour the open-pit and processing plants. He hopes that the tours will prove the mine’s merits to the country and its residents.

The company sees the eight-hour tours as a way of communicating with civilians about environmental and social concerns. Visitors can speak with staff on the tours and a virtual tour is also being prepared.

Maru Gálvez, spokesperson for Cobre Panamá, said: “We have high expectations that this experience will be enriching for all participants and that it will give them the opportunity to learn about reality for themselves. We want to deny the misinformation that has been generated around the operation of the mine.”

Harding stressed that it was important that his company develops a strong relationship with Panamanians, especially considering that mining is relatively new in the country.

“We had a mine that worked for the people of Panama, so I am confident that we will find a solution,” Harding told Bloomberg.

First Quantum admits that it could have done a more thorough job of communicating the job creation and revenue for Panama derived from the mine’s operations. However, Gálvez added that the shutdown order was partly determined by social media hysteria and misinformation.

The next election in Panama will be held on 5 May 2024.

 

B.C. government halts mining, exploration activities in two coastal regions

Interim moratorium imposed for Ehattesaht, Gitxaała territory

Nelson Bennett
about 24 hours ago

Banks Island mine, shut down for environmental violations, was approved without Gitxaala consent or notification.BIV / Pacific Wild

The B.C. government is putting all mining and mineral exploration and permitting activity on hold in two regions of B.C., pending an overhaul of the Mineral Tenure Act.

It’s the kind of move that has the potential to put a chill on mineral exploration in B.C., due to the uncertainty it may create, although the two areas of B.C. where activity and permitting is being temporarily “paused” are not exactly hotbeds for mining or mineral exploration.

The B.C. government today announced orders that will pause mineral exploration and permitting in Gitxaala territory, which is on the northwest coast, centred around Kitkatla south of Prince Rupert, and Ehattesaht territory on Northwest Vancouver Island, between Nootka Sound and Kyuquot.

The activity will be paused, though it appears there would be provisions that would allow exploration activity, if the First Nations give consent.

“The orders pause the limited current mining activities as well as the issuance of new permits in Gitxaała and Ehattesaht territories and prevent the registration of new mineral claims without agreement by the respective nations,” the government said in a press release.

The temporary orders are being made to avoid any further legal battles over the issue of mineral claims being granted without First Nation knowledge or consent while the province overhauls the Mineral Tenure Act to achieve a more permanent solution.

The Gitxaala’s concerns over the way mineral claims are filed arose after a small gold mine on Banks Island left behind an environmental mess. The Gitxaala went to court to challenge the way mineral claims are granted in B.C., and were joined in their court challenge by the Ehattesaht.

Anyone who wishes to go do exploratory work in the hunt for metals, minerals and gems can file a mineral claim without anyone but the government being aware.

There’s a reason for this. Prospectors only file claims for areas where they suspect the geology may be conducive to hosting certain mineral deposits, and don’t want to tip their hand, lest others follow their lead.

The Gixtaala and Ehattesaht say they should be made aware of claims being granted in their traditional territories that could lead to resource extraction.

The two First Nations sought an injunction against any further claims being granted without their consent, and also asked that several claims that had already been issued be quashed. They also sought a declaration that the Mineral Tenure Act was inconsistent with the Declaration on the Rights of Indigenous Peoples (DRIPA).

BC Supreme Court Justice Alan Ross last year agreed the province has a duty to consult First Nations even at the earliest stages of mineral exploration – the filing of a claim – but declined to grant the injunctions sought or quash claims already issued.

He gave the provincial government 18 months to resolve conflicts between the Mineral Tenure Act, Canadian laws governing the duty to consult, and DRIPA.

Unsatisfied with the ruling, the Gitxaala and Ehattesaht appealed. They are now suspending their appeals, after reaching an agreement with the province, which has agreed to halt all mineral exploration activity in their traditional territories.

"These interim measures mean that instead of ongoing litigation that could have far more significant and longer-term impacts to the sector, we are instead able to focus on our work together to reform the act, providing greater certainty to First Nations, industry and British Columbians,” said Josie Osborne, minister of Energy, Mines and Low Carbon Innovation.

The Mining Association of BC (MABC) said it supports the work currently underway to “modernize” the Mineral Tenure Act.

“MABC and our members strongly support a modernized MTA that fulfills the Crown’s duty to consult First Nations, maintains investor confidence in BC, and advances economic reconciliation, First Nations partnerships, and shared prosperity through the development of BC’s critical mineral resources,” MABC president Michael Goehring said.

The Association of Mineral Exploration (AME) appears to be a bit more concerned over the Mineral Tenure Act modernization process.

“AME continues to seek transparency, certainty and clarity on the Mineral Tenure Act (MTA) modernization process,” the association said in a news release.

“Industry must play a more significant role in this process as a tenuring system that protects the intellectual property of our members and ensures their ability to explore is at the crux of our members’ interests.”

nbennett@biv.com

Deep-sea mining could cause $500bn in environmental damage – report

The undertaking is proving not to be financially or environmentally viable.

Alfie Shaw

March 8, 2024

The financial validity of deep-sea mining has been questioned. 

Credit: Vincenzo di Giorgi.

Deep-sea mining could cause up to 25-times more damage to the world’s biodiversity than land-based mining, resulting in $500bn of lost value, according to a new study published on Thursday.

Many of the critical minerals needed in the production of electric vehicles (EV) can be found under the ocean floor, including cobalt, nickel, copper and manganese. Reserves are estimated to be worth somewhere between $8trn and $16trn.

The report, entitled How to Lose Half a Trillion and authored by non-profit Planet Tracker, said extracting metals from the seabed could cost the mining industry $30bn–132bn in value destruction.

François Mosnier, lead author of the report, said: “Before factoring in any environmental impacts, the economics already appear uncompelling. High operating expenditures mean that returns will be negative for investors in deep-sea mining, which will also destroy value in other sectors such as terrestrial mining and fishing.”

“It is not often that financial markets can claim a major success in nature conservation while avoiding significant destruction to corporate value and natural capital. Preventing deep-sea mining would be such an opportunity,” he added.

Many major global banks such as NatWest, Lloyds, ABN Amro and Standard Chartered have already ruled out funding deep-sea exploration and extraction.

Speaking to Mining Technology, Dr Kirsten Thompson, biologist at the University of Exeter, highlighted the potential negative aspects of deep-sea mining. She said: “I don’t think it can be sustainable. I mean fundamentally, you are talking about extracting minerals from the frontier of the oceans, the frontier of the planet. We haven’t managed to get there because of a lack of development in the technology. For me it seems like yet another industry that is pushing into a frontier area before regulations are in place.”

Speaking to the financial difficulty of deep-sea mining, Victor Vescovo, co-founder of Insight Equity Holdings, said: “I am first and foremost an industrial private equity guy. I did the math, and deep-sea mining just doesn’t work, as the risks are extraordinarily high.”

Canada plans scrutiny of Chinese offtake deals, minister says at PDAC

Colin McClelland | March 6, 2024 | 

Canadian Natural Resources Minister John Wilkinson says the government has been clear about foreign investing in critical minerals. Credit: Colin McClelland

The federal government says it’s considering how to handle offtake agreements that function as loans or investments by China in Canadian mining companies as it continues to clamp down on critical mineral transactions by the Asian giant.


First Quantum Minerals (TSX: FM) inked a $500-million deal last month to supply Jiangxi Copper from the Kansanshi mine in Zambia as the Vancouver-based miner strives to shore up finances after authorities shut its Cobre Panama mine in the Central American country.

“There are active conversations going on about how best to approach some of those kinds of issues,” Natural Resources Minister Jonathan Wilkinson told reporters in Toronto. “What you’re going to find increasingly moving forward is democratic countries around the world coming together to try to find pathways through which we actually are ensured of access of the minerals we’re going to need.”

The largest shareholder in First Quantum is Jiangxi Copper, but Wilkinson said the government won’t pursue investments that pre-date its critical minerals divestment strategy. It began in November 2022 by targeting three TSX-listed lithium companies. Ottawa hasn’t changed its stance on reviewing Chinese investments in Canadian critical mineral companies, he said, even as recent deals highlight continued interest from the mining and processing behemoth.

“We’ve been pretty clear that we are not interested in investment generally from state-owned enterprises,” Wilkinson said in reply to a question from The Northern Miner at the Prospectors and Developers Association of Canada annual conference in Toronto. “Certainly the ones that are raising significant flags would be those that actually require some kind of offtake agreements, those that require control – effectively controlling shareholders – or provide for significant board representation.”

Competing interests

The federal reviews must walk a line between competing interests. On one side are mining companies, especially at the junior level, who are facing what they believe is an unprecedented funding crunch from lack of stock markets investing in the industry and who turn to industrial power China for backing. On the other side is the rising trend of resource nationalism for security as countries in the West try to diminish China’s dominance in critical mineral mining and processing.

China’s Yintai said last month it would buy Osino Resources (TSXV: OSI; US-OTC: OSIIF) for C$368 million, Zijin Mining invested $97 million for 15% of Solaris Resources (TSX: SLS; US-OTC: SLSSF) in January and Vital Metals (ASX: VML) said in December that Shenghe Resources was buying stockpiles of rare earth elements mined at its Nechalacho project in the Northwest Territories.

Each of those deals might have some wiggle room under a review. Osino’s primary asset is the Twin Hills gold project in Namibia. Gold is not one of Canada’s 31 critical minerals. Solaris is digging for copper, a critical mineral, but 15% isn’t regarded as a controlling stake. Vital is an Australian company, so Ottawa doesn’t have direct recourse under Canada’s Investment Act, though it does have a say in permits for the project.

On Tuesday, Montreal-based SRG Mining (TSXV: SRG) said it’s cancelling a $12.5 million deal with China’s Carbon ONE New Energy Group to take a 19.4% stake in the graphite miner. It had said last week it would incorporate in Abu Dhabi while maintaining its Toronto listing.

“That was a helpful decision that they would essentially not re-domicile in order to accept Chinese investment,” Wilkinson said. “But certainly we will be looking at all transactions that involve Chinese state owned enterprises and those companies related to them.”

BHP becomes first miner in Chile to exceed 40% female representation

Cecilia Jamasmie | March 8, 2024 | 

Female geologist in Canada. (Image from International Women in Mining, Facebook.)

BHP, the world’s largest miner, has come a long way in the matter of female representation in its workforce, particularly in Latin America, becoming this year the first mining company in Chile in which women account for 40.8% of its staff.


The firm, which owns and operates 57.5% of the Escondida, the world’s largest copper mine, and has other producing and exploration assets in the country, including the Spence and Cerro Colorado mines, says female presence in its operations is more than double the national industry average of 15%.

Back in 2016, when BHP had only 17.5% female presence globally, the mining giant set a public goal to achieve gender balance by 2025

.

Jocelyn Vega Vallejos, Mining Operations Technician at Escondida.

 (Image courtesy of BHP.)

“Gender parity was a goal that many believed impossible. Today, at BHP Americas, we can proudly confirm that we have achieved 40% female representation, one year ahead of schedule,” BHP Americas president Rag Udd said in a statement.

“We are aware that this journey does not end here. Although gender balance is important, it is vital that we focus on creating an inclusive culture, in which everyone can contribute with their full potential,” Udd noted.

At Escondida alone, BHP employs 1,509 women out of 3,935 workers.

The company says that increased female representation at its operations is a result of the implementation of policies addressing gender pay gaps, the promotion of labour flexibility, as well as training and talent retention initiatives. The company notes that adapting operational infrastructure to better suit the needs of women has also been a factor in the equation.

A recent report by the CCM-Eleva Alliance, a joint initiative between Chile’s Mining Council and Fundacion Chile, analyzed workforce trends and the challenges 27 mining and supplier companies are facing.

One of the report’s main conclusions is that female participation in the labour market sits below those of developed countries. When it comes to decision-making across the mining industry, however, women accounted for 17% in 2022. This means country is better positioned in terms of women’s participation in the mining industry than Peru, and at the same level as the United States.   

In terms of women’s participation in the mining industry, Chile is better positioned than its neighbours and at the same level as the United States.

 (Image courtesy of CCM-Eleva Alliance Report.)


The mining industry’s treatment of women came under increased scrutiny in 2002, when the government of West Australia published the results of an inquiry that revealed “horrific” incidents at remote projects.

At Rio Tinto (ASX, LON: RIO), more than a quarter of female workers experienced sexual harassment and bullying, the company revealed in 2022.

The same investigation revealed that BHP recorded 91 reports of alleged sexual harassment or assault in the year through June 30, 2021, of which 79 were substantiated.

The mining giant, which completed in 2023 a A$300 million ($191 million) project to make its mining villages in Western Australia safer by adding extra CCTV cameras, security lighting, doors and fences, saw a 20% increase in reported sexual harassment last year.

Italy on Track to Phase out Coal for Power Generation by 2025

By Charles Kennedy - Mar 06, 2024

Italy will halt the use of coal to generate electricity by 2025, opting instead to increase the use of gas-fired power plants, according to the Italian Energy Ministry. 

"The intermediate target of abandoning coal in the electricity generation mix as of Dec. 31, 2025 ... is very close. The updated (National Climate and Energy) Plan will certainly confirm it," Minister Gilberto Pichetto Fratin told parliament on Wednesday, as reported by Reuters. 

The island of Sardinia will be excluded from the nationwide plan, with the target date to phase out coal for electricity generation there between 2026 and 2028. 

While the European Union is hoping to phase out fossil fuels, it has recently embraced natural gas as a necessary “bridge” fuel in the energy transition. 

Last summer, EU  lawmakers voted to include natural gas and nuclear energy on the list of sustainable activities in line with its fight against climate change and its goal of reaching climate neutrality by 2050.  

In early February, Germany earmarked $16 billion for the construction of four natural gas power plants to complement a renewable energy expansion push. And Austria has recently made its largest natural gas discovery in four decades—enough to increase its domestic production by 50%.

Italy has given the go-ahead for four new gas-fired plants over the past couple of years, which will be able to produce around 3,400 megawatts of power, with another 700 MW expected to be gained by upgrading existing power plants by 2026, Reuters reported. 

Italy’s Energy Ministry told parliament on Wednesday that the country managed to almost completely phase out Russian gas, which represented only 4% of Italy’s total gas imports last year. That Russian gas was replaced primarily by Algerian gas and imports of liquefied natural gas (LNG) from Qatar and the U.S. 

Italy’s winter gas storage is now 64% full, though this is expected to drop to around 45% by the end of this month. 

By Charles Kennedy for Oilprice.com

China coal group says peak demand imminent as clean power grows

Bloomberg News | March 8, 2024 |

Coal mining. (Reference image from RawPixel).

China is rapidly approaching peak coal consumption, but the fossil fuel’s role in helping to address energy security concerns means its use will plateau for some time after that, according to the nation’s top industry association.


Coal is being displaced in the power sector thanks to a huge surge in wind and solar additions last year, while the real estate crisis is helping to cool demand from heavy industry, said Zhang Hong, deputy secretary-general of the China National Coal Association. At the same time, the growth of renewables means coal is in demand to help balance out intermittent generation.

A sharp drop in consumption, therefore, will not come swiftly.

“Coal demand is reaching a plateau period, but its fundamental role in supporting China’s energy supply safety is hard to change in the short-term,” Zhang said at the China Coal Import International Summit in Xiamen, southeastern China. “The role of coal as primary energy and a fallback for ensuring energy security remains unchanged, even when it is close to reaching a plateau.”

China mines and burns more than half the world’s coal, making its power sector the single biggest contributor to planet-warming greenhouse gas emissions. A series of power shortages in recent years led the government to boost mining to a record and go on a spree building new coal power plants, even as it invests more than any other country in clean energy.

Coal consumption rose 5.6% last year, a faster increase than the prior year, as the country left Covid-19 restrictions behind at a time when hydropower generation was hit by an historic drought. Still, the International Energy Agency forecasts coal consumption in China will fall in 2024 and plateau through the next two years. President Xi Jinping has promised that the country’s use of the fuel will begin to decline from 2026.

The debate over fuel’s trajectory continues, though. At the same conference, Wu Wenbin, head of coal management at Guangdong Energy Group, said he expects a 4% increase in consumption this year. Fenwei Digital Information Technology Co., the conference organizer and a coal industry research firm, forecasts a 2% rise this year for power-station coal.

 

IMO and ILO Team Up to Write Anti-Harassment Rules Into Maritime Law

USCG file image

PUBLISHED MAR 7, 2024 6:34 PM BY THE MARITIME EXECUTIVE

 

The International Labor Organization (ILO) and the IMO have released a new set of recommendations for reducing the impact of sexual assault and harassment at sea. 

“We remain steadfast in our commitment to creating a safe and respectful working environment on board. Recognizing that this is not only a moral imperative but also a practical necessity for the industry’s sustainable growth, we are committed to preventing and combatting bullying and harassment in the maritime sector," said Arsenio Dominguez, IMO's Secretary-General. 

IMO and ILO are recommending new mandatory trainings for seafarers, new guidance for shipowners, and amendments to the Maritime Labor Convention (MLC). The objective is to bring the MLC in line with the ILO Violence and Harassment Convention, which applies to employment on land. Member states will have the opportunity to submit proposals for updating the MLC until September 2024, and these potential solutions will be discussed at the next joint meeting of the ILO and IMO next year. 

"We urgently need to ensure that seafarers have a safe working and living environment. I welcome the recommended action, in particular the possible amendments to the MLC," ILO Director-General Gilbert F. Houngbo said. "This will strengthen the protection against violence and harassment . . . to ensure seafarers’ right to decent work and increase the attractiveness of the industry.” 

Bullying is deeply integrated into the historical tradition of seafaring, and the nickname "bully" was once synonymous with "sailor." In modern times, the prevalence of harassment varies with the behavioral standards and company culture of each vessel operator. A widely-cited review carried out by researchers at the Kalmar Maritime Academy found that about 8-25 percent of today's seafarers report experiencing some form of bullying, rising to more than half of female seafarers, who make up about one percent of the workforce on cargo vessels. A more recent survey by the Danish Maritime Authority found that reports of harassment were more concentrated among the ranks of younger seafarers, and were more likely to be motivated by race than by other factors. 

These numbers are likely an undercount of the reality on board, according to the Kalmar Maritime Academy study. "The underreporting of bullying and harassment is well documented in previous research, especially in workplace cultures where incidents are trivialized," noted authors Cecilia Österman and Magnus Boström. 

 

Iran and Philippines Agree to Swap Crew on Seized Oil Tanker St Nikolas

St Nikolas (ex Suez Rajan) was seized in January after the ship took an Iranian oil cargo to the U.S. in 2023 (Iranian TV)

PUBLISHED MAR 8, 2024 11:55 AM BY THE MARITIME EXECUTIVE

 

 

Iran has agreed to release the crew aboard the tanker St Nikolas that it seized in January 2024 in a retaliatory move after the U.S. seized a crude oil cargo from the ship in 2023. According to the Philippine Department of Foreign Affairs, an agreement was reached that will permit the first batch of seafarers to return home this weekend followed by additional crewmembers later in March, but the manning agency must put other crewmembers aboard the tanker.

Eduardo Jose de Vega, Undersecretary of the DFA, announced in an interview on Philippine TV that nine of the Filipino crewmembers from the St Nikolas are expected to arrive in Manila on Sunday, followed by two more on March 13. One Filipino was able to return home in February meaning that there will be six Filipino crewmembers remaining on the tanker, but he believes they will also return home soon.

According to the report, the Philippines demanded the release of the crew which has been aboard the tanker since Iran seized the vessel on January 11, 2024. Iranian forces boarded the vessel by helicopter while it was approximately 50 nautical miles east of Sohar, Oman in the area between Iran and Oman, and ordered it to sail to Iran. In 2023, the same vessel then known as Suez Rajan was embroiled in a U.S. legal dispute that saw the cargo seized by a U.S. court and the tanker ordered to sail from Singapore to Houston to deliver the oil. The vessel was renamed in September 2023 as it departed from Texas.

The 158,000 dwt tanker managed by Empire Navigation of Greece had loaded a cargo at the Al Basrah terminal in Iraq and departed on January 8 bound for Aliaga, Turkey. It was reportedly operating under charter to Tupras, a Turkish oil refiner, and was operating with a crew of 18 Filipinos and one Greek cadet.

Iran asserted that the crew was not being held as hostages but were employees aboard the tanker which had been legally seized by a court order. They agreed to the demands of the DFA that the crew be permitted to leave the vessel at the end of their contracts.

The manning agency reported that it offered to double the salary of the crew while the vessel is in Iran. One crewmember reportedly declined the offer and was permitted to leave the vessel returning to the Philippines in February. The Greek cadet was permitted to return home shortly after the vessel was seized. The next nine Filipinos are coming home this week at the end of their contracts and according to the DFA will be replaced with non-Filipino crewmembers.

De Vega said they have been advised that the tanker will remain in Iran’s custody until its court decides what it will do with the ship and its cargo. The vessel needs to remain crewed he said but not necessarily with Filipinos. The replacement crew, of course, is also aware of the situation they are going into versus the Filipino crew which were aboard when the vessel was seized.

Earlier in the week Iran reported that its court ordered the confiscation of the oil aboard another tanker, the Advantage Sweet, which the country has been holding since April 2023. Reports said Iran is currently holding five tankers with approximately 90 crewmembers aboard.

Iran to Unload $50 Million Worth of Crude Oil From Tanker Seized in 2023

By Tsvetana Paraskova - Mar 06, 2024

Iran is set to unload the crude, worth about $50 million, from a tanker chartered by U.S. supermajor Chevron and seized by Iran in the Arab Gulf last year, according to the semi-official Iranian news agency Fars.  

The unloading of the tanker now appears to be a tit-for-tat for actions by the United States.

In May 2023, Iran’s Navy seized the Marshall Islands-flagged oil tanker Advantage Sweet while it transited international waters in the Gulf of Oman.

The oil tanker had departed the Mina Saud Port in Kuwait and was destined for Houston, Texas, after being commissioned by U.S. oil giant Chevron.

The crude oil tanker is Turkish-owned and operated. The U.S. Navy has demanded that the vessel be released, asserting that the tanker had been seized in international waters, halfway between Iran and the Omani coast.  

At the time, the Iranian Navy said it was taking the Suezmax crude oil tanker back to Iran for investigation.

In August 2023, a tanker suspected of carrying Iranian crude oil offloaded near Texas on another tanker. The U.S. seized the Suez Rajan tanker in April last year, prompting quick retaliation from Iran, which seized the Chinese-owned, Turkish-operated tanker that was loaded with crude for delivery to Chevron.

The Suez Rajan was never officially seized by American forces, the AP recalls. The tanker sat for months off the coast of Singapore after an activist group sounded an alarm that it was carrying Iranian crude, and then it suddenly set off for the U.S. Gulf Coast. Two tanker seizures from Iranian forces followed in the Persian Gulf.

Then, early this year, an oil tanker reported to have been hijacked in the Gulf of Oman in January was seized by Iran in retribution for the U.S. seizure of 1 million barrels of Iranian oil last year. 

The Marshall Islands-flagged oil tanker, the St. Nikolas, was previously named the Suez Rajan, which was entangled in a sanctions dispute for transporting Iranian oil that eventually led to the seizure of that oil in 2023.