It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Friday, March 08, 2024
Ports Provide Context Refuting Overblown Reports of “Chinese Spy Cranes"
China's ZMPC builds the cranes and ships them fulyl assembled for installation at the ports (PortHouston file photo)
The American Association of Port Authorities (AAPA), the more than 100-year-old trade association representing port leaders, is speaking out on the media reports about Chinese “spy cranes” and in response to the media reports after the recent hearing by the U.S. House of Representative’s Homeland Security Committee. The organization says there needs to be “more context” on the story so that the public knows the reality of the situation.
“Coast Guard Rear Admiral John Vann recently testified under oath that there have been no known security breaches involving port equipment,” stated Cary Davis, American Association of Port Authorities President and CEO. “Our ports proactively work with the U.S. Coast Guard, other federal law enforcement, and private sector experts to mitigate risks through inspections and defensive measures.”
AAPA is responding after the wide media coverage first reported by The Wall Street Journal that said a pattern of “suspicious devices” had been discovered on the installations on the Chinese-built STS cranes. The U.S. Coast Guard revealed last month that it was assessing 200 cranes for cybersecurity vulnerabilities. Vann told reporters in February that by design the cranes and software have remote programming capabilities and tracking devices built into their systems which he contended are “vulnerable to exploitation.”
The trade group is highlighting that while speaking at Homeland Security Committee on February 29, Vann however also said “What we have not found is instances…of malware or a trojan horse type software.” The group says that there are extensive efforts to monitor potential threats with a strong focus on cyber defense and domain awareness.
When the issue first surfaced in the media in March 2023, AAP called the stories “alarmist media reporting.” They said at the time, all the efforts at examining the cranes and the software employed showed no evidence of the accusations, saying simply “There’s no smoke in this story,” referring to the lack of a smoking gun.
The group called attention to the lack of U.S. manufacturing capabilities for cranes highlighting that China has subsidized crane manufacturing in a way that makes its cranes half the cost of the competition. Chinese manufacturer ZMPC is reported to have between 70 and 80 percent of the market worldwide for the large cranes used to move containers on and off boxships.
“Without reshoring our domestic manufacturing capacity, legislative proposals to hastily remove cranes from U.S. ports without immediate replacements would harm U.S. supply chains, jack up prices for everyone, and exacerbate inflation even further,” AAPA warned in March 2023.
The politically charged issue was picked up by the Biden administration which in February launched an Executive Order saying, “Every day malicious cyber actors attempt to gain unauthorized access to the Marine Transportation System’s control systems and networks.” The administration ordered the US Coast Guard to develop a mandatory cybersecurity bulletin and made reporting cybersecurity events mandatory for ports.
They also used the issue as part of the broader effort to reinvigorate domestic manufacturing. The administration announced that after an absence of more than 30 years, a U.S.-based subsidiary of Japan’s Mitsui E&S Co. is planning to relaunch a U.S. manufacturing capability for cranes.
The Chinese responded after the Biden Executive Order was announced saying the premise of the initiative of port cybersecurity and the focus on Chinese-manufactured cranes was “entirely paranoia.” Chinese officials criticize the U.S. for not understanding China calling the repeated use of the “China card” by the U.S. “irresponsible.”
Chinese-Built Port Cranes May Be Able to Call Home On Their Own
Brand new cranes leave the ZPMC yard, bound for an American port (ZPMC file image)
The House Homeland Security Committee has discovered a pattern of suspicious device installations on the Chinese-built STS cranes that dot almost every American container port. The committee's inquiry into Chinese threats to American maritime security has uncovered dozens of cranes with previously-unidentified cellular modems attached to their electronic systems, reports the Wall Street Journal.
While there are legitimate reasons for industrial systems like cranes to be fitted with their own telecom access points - for example, remote diagnostics data for aftersales support - the purpose of these particular devices is unknown, and they were not documented in any sales contract. The modems appear to have been installed in China, before the cranes' delivery. One port's staff told the Journal that they were not sure what the modems were for; in some cases, these devices connected to the cranes' operating control systems.
The suspicious hardware is another example of Chinese government efforts to "systematically burrow into America’s critical infrastructure," committee chairman Rep. Mark Green (R-TN) told the WSJ. Green is concerned that this effort is not just intended for spying, but for creating the capability to disrupt American commerce at will.
One single Chinese manufacturer, ZPMC, holds a dominant position in the global STS crane market. It accounts for about 70 percent of all STS crane installations worldwide, and the percentage is even higher in the United States. ZPMC's heavy-lift delivery ships are a familiar sight whenever an American container terminal expands its quays.
The U.S. Coast Guard's cyber command has previously said that it has found intentional vulnerability points for hackers in the operating systems for these cranes.
The Biden administration believes that Chinese cranes are such a serious cybersecurity risk that it is willing to invest billions in restoring an American-made replacement option. The last U.S.-based builder of STS cranes exited the business three decades ago, but that firm - a division of Mitsui - is willing to partner with the government and with American manufacturers to restart production.
The administration has also empowered the U.S. Coast Guard to require vessels and ports to address "cyber conditions that may endanger the safety of a vessel, facility, or harbor." It also implemented a mandatory reporting requirement for cyber incidents along the waterfront. Cybersecurity concerns are also now an explicit justification for controlling a vessel's movement.
Construction Begins on First Two Methanol Dual-Fuel Tugboats
Vancouver is at the forefront with electric, LNG, and now methanol-fueled tugs for port operations
Construction recently began in Turkey on two dual-fuel methanol tugboats. While several projects are working on developing tugs powered by methanol, these two are scheduled to enter service in mid-2025 making them the world’s first large, purpose-built high bollard pull tugs fueled by methanol.
These tugs are being built at Sanmar Shipyards in Turkey. When completed, they will be employed escorting tankers supporting the Trans Mountain Expansion Project between the Westridge Marine Terminal and the harbor limits of the Port of Vancouver, Canada. The contract for the operation of the tugs was awarded in December 2021 to KOTUG Canada, a partnership between KOTUG and Canada’s Horizon Maritime Services.
The Canadian Energy Regulator imposed as a condition of the project the escort of the tankers, which will be up to Aframax class in size, to minimize the risks including grounding should a vessel become disabled for any reason. Robert Allen, well-known in tugboat design, was hired for the project and they studied the requirements of the tugs and consulted with BC Coastal Pilots in Canada. They determined the optimum minimum tug size for the project vessels and customized the forward escort system to the pilot’s needs.
Last July, the companies confirmed that they would be proceeding with the methanol dual-fuel tug design that includes a hybrid propulsion configuration. Each vessel will be approximately 145 feet (44 meters) in length with a bollard pull capacity of 120 tonnes. Earlier reports said they would be escort-rated 9,000 horsepower tugs and will replace the existing tugs selected in 2021.
The two methanol-fueled tugs are expected to be among the first in the world when they enter service in 2025 (KOTUG)
First steel for the construction took place in Turkey on February 13 and the vessels will be named SD Aisemaht and SD Qwii-Aan’c Sarah taking names from the First Nation people who are also participating in the project. Among the other features, the tugs will be equipped with a mechanical cross-link system (Schottel SY Drive azimuth thrusters) to enable a single engine to drive two thrusters. They report that this will significantly reduce fuel consumption. They also plan to apply graphene paint to reduce biofouling. It will also enhance hull smoothness and reduce underwater noise and drag making the vessels more fuel efficient. They expect the vessels will be able to reach speeds up to 14 knots.
As part of the Canadian requirements, the tugs will also be equipped with Firefighting Class 2 equipment suitable to support a response at sea or the terminal. They also will have space for tanks and equipment to assist during an oil spill and recovery event.
These tugs follow Canada’s first fully electric battery-powered tugs which arrived in Vancouver in July 2023 to be operated by HaiSea Marine, a partnership with Seaspan. The vessels have a battery storage system to provide more than 5,200 kWh. They were designed to support the movement of LNG carriers in Vancouver harbor and will be joined by two dual-fuel LNG-powered tugs.
Another operator, SAAM Towage also recently took delivery of two battery-powered electric tugs. They will be used to move bulkers operated by Teck Resources in Vancouver Harbor.
Vancouver and British Columbia are at the forefront of the industry transitioning to a green harbor fleet. They are replacing older diesel-fueled tugs with this new generation of environmentally friendly vessels.
Korea Launches First Containership Built for Autonomous Operations
Pos Singapore was designed for the autonomous navigation system and will begin demonstrations in September (Ministry of Oceans and Fisheries)
South Korea today launched a new containership which is set to achieve new milestones in the efforts to develop autonomous shipping. The country’s Ministry of Oceans and Fisheries is highlighting the vessel as the first large, ocean-going ship designed for Level 3 autonomous shipping and they plan to launch the first long-distance international demonstrations of autonomous shipping with this vessel later this year.
At today’s ceremony shipbuilder Hyundai Mipo Dockyard in Ulsan, South Korea marked the float out and naming of the vessel. She is the Pos Singapore built for Pan Ocean. Ordered in 2022, the vessel is 564 feet (172 meters) in length with a capacity of 1,800 TEU. Registered in Liberia, the 22,200 dwt containership is scheduled to be delivered at the end of this month and then will begin outfitting and testing the autonomous system.
The South Korean government highlights that it has designated autonomous vessels as a core initiative in its Advanced Maritime Mobility Development Strategy announced in November 2023. This project for autonomous shipping was launched in 2020 with the government committing more than $120 million for the research and development of the technology.
A public-private partnership was launched with shipbuilding and shipping along with the technology industry. According to the ministry, this system is designed to achieve IMO Level 3, meaning the ship can operate autonomously without crew onboard. Operations will be conducted fully by remote control.
From the design stage of the containership, Pan Ocean and Hyundai Mipo completed preliminary preparations to install the autonomous navigation system, which will now be installed. The system integrates autonomous navigation, digital-based agency monitoring, communication, and security technology.
The Korean industry has been testing a range of autonomous systems over the past few years. In 2022, Hyundai conducted what was called the world’s first transoceanic voyage of a large merchant ship employing autonomous navigation technologies. The system was fitted aboard a 97,500 dwt LNG carrier and undertook a more than 11,000 nautical mile crossing of the Pacific.
Demonstrations of the latest version of the technology started in 2023 aboard a smaller, domestic ship, Ocean Nuri (69 tons). The plan calls for the Pos Singapore to undertake its first demonstrations on an international route beginning in September 2024.
South Korea Takes Down “For Sale” Sign on HMM
HMM is moving forward with its growth strategy while the government shelved plans for a privatization (Suez Canal fle photo)
Efforts to privatize South Korean shipping company HMM have been put on hold indefinitely after the collapse of negotiations to sell a controlling stake to the Harim Group, the parent company of Korean dry bulk shipping company Pan Ocean. The country’s two state-controlled financial institutions had been looking for years to return the shipping company to private hands after the government-led bailout rescued the former Hyundai Merchant Marine and recapitalized the company into HMM.
“We have no plan to restart sales of HMM for now,” South Korea’s Oceans Minister Kang Do-hyung told reporters at a conference on Thursday ending weeks of speculation on the government’s plans. He told the reporters, “As the company is injected with the state fund, we plan to set plans so that it can be operated soundly.”
The price of the company’s stock was down by 0.35 percent on Friday after the government clarified its position. Harim had been selected in partnership with Korean private investment firm JKL Partners as the winning bidder in December with an offer valued at approximately $4.9 billion to take a 58 percent stake in the company. Negotiations to finalize the deal became stuck on issues of management control, board representation, and the plans for the government to sell its remaining stake in the shipping company.
After the negotiations collapsed, an official at the state-run Korea Development Bank told the Korean JoonAng Daily that the next steps were uncertain. They said they would be holding discussions with the other large shareholder, Korean Ocean Business Corporation, but it was also reported that Korea’s Ministry of Oceans and Fisheries was reluctant to proceed with the sale process. Reports said there were calls for “prudence” in setting the strategy.
KDB had been reported to be exploring the privatization for at least two years before launching the process in 2023. Officials of the bank questioned the use of public funds to finance the shipping company pointing out that HMM finally became profitable in 2020 after years of losses. In 2023, they formed an advisory group with investment bankers and consultants and launched the bidding process, but there were questions over the timing as the container market was declining.
Media reports speculated that there was disappointment last year when none of Korea’s large conglomerates came forward as bidders. It ultimately came down to a head-to-head battle between two midsized groups, Harim and food and logistics company Dongwon Group. KDB and KOBC rejected an expression of interest from Hapag-Lloyd saying that ownership of HMM should remain in Korea while SM Line failed to enter a bid saying the valuation of HMM was too high. Another smaller South Korean conglomerate, LX Holdings, had also qualified to bid but did not proceed.
There had been speculation that the financial institutions might attempt to approach Dongwon or negotiate another sale. HMM has mapped out a strategy and continues to move forward looking both to expand its container operations and diversify by growing operations in dry bulk and tankers. The company ordered new heavy-lift vessels and its first car carriers. There had also been speculation that it might attempt to purchase its former LNG shipping company which was sold off during the recapitalization.
Cannabis sales in Minnesota are likely to start later than expected. How much later isn't clear
Steve Karnowski, The Associated Press
Minnesota probably won’t meet its goal of launching full-scale retail marijuana sales in the first quarter of 2025 because of the time it will take to draft regulations and issue licenses, the state’s top cannabis regulator acknowledged Thursday.
While Charlene Briner, interim director of the Office of Cannabis Management, didn't totally rule out the possibility of some retailers opening early next year, she conceded during a briefing for reporters that she doesn't know how long it will take until legal marijuana is widely sold across the state.
“I don't think any of can answer that question,” Briner said.
Briner spoke during a briefing that was called to highlight legislation introduced Thursday to make a series of updates to the state law legalizing recreational cannabis for adults, which was enacted last May. Using, possessing and growing marijuana for personal use, within limits, became legal last August. But sales are still a legal gray area.
Many of the proposed changes to the law are aimed at strengthening “social equity” opportunities for people who come from communities deemed harmed by the the prohibition against marijuana to get into the industry legally.
Currently, only a few tribally owned on-reservation shops are legally allowed to sell recreational marijuana in Minnesota because tribal sovereignty exempts them from state regulation.
Depending on when the state's regulations are put in place, and then the first licenses are issued, Briner said, well-capitalized retailers could conceivably get inspected and open their doors “within a few weeks or a couple of months.” But others may need more time to hire and train staff, she added.
“It's not for OCM to determine the timeline between obtaining a license and when your door is open for business,” she said. “I don’t think that any of us can give that definite sort of light-switch-on date.”
There have already been bumps along the way toward establishing a legal marijuana marketplace in Minnesota. Gov. Tim Walz has yet to name a permanent director for the regulatory office. The administration reopened the application process after it emerged that his first nominee hadn't been fully vetted.
Briner said the process in Minnesota is not going slower than in other states. But data compiled by KMSP-TV show that the average time in 20 other states has been 17 months from the vote to legalize to the first retail sales, with a median time of 14 months. It took 14 months in Colorado, the first state to legalize it, while it took Vermont 57 months. Some states took less than a year. Minnesota appears poised to need at least 22 months.
“We are working very quickly, and we’re trying to do it thoughtfully, while also mitigating the risks that we have," Briner said. "We are intensely aware that the gap between full legalization and a regulated market is important to minimize, and we are working as quickly as we can to make that happen.”
'The world is growing': Rio Tinto CEO shares outlook amid changing mining landscape
Jordan Fleguel , BNN Bloomberg
The head of the world’s second-largest mining company says that despite ongoing economic and geopolitical challenges, global demand for mined metals and minerals remains strong.
“Everybody says that it's a very difficult world we are living in, and certainly there is a lot of geopolitical uncertainty, there's even wars now, but the world is growing,” Rio Tinto Group CEO Jakob Stausholm said in an interview.
Stausholm made comments to BNN Bloomberg’s Andrew Bell at the Prospectors & Developers Association of Canada (PDAC) convention in Toronto on Monday morning.
Rio Tinto’s global mining operations are underpinned by its iron ore division, which accounted for roughly 80 per cent of its profits last year. Stausholm said iron ore demand from China, the world’s largest metal consumer, remains strong in the face of economic weakness in markets like real estate.
He added that China’s economy grew around five per cent last year, and the property market “probably contracted, but what we see is that there's a lot of infrastructure being built and there's also a lot of industrial expansion.”
“A lot of that is underpinned by building the energy transition. What you see in China is large-scale development of solar energy, wind power and extension of the grid… all those things require steel, copper and aluminum,” Stausholm said.
Stausholm said steel demand is also rising fast in India due to its continued expansion of infrastructure. India is currently self-sufficient in iron ore production, but will likely become an importer of the material soon, he added.
“You typically see a development pattern for a country where at the beginning, you have a very low steel intensity and then the steel intensity goes up,” Stausholm said.
“China is kind of at the top of the cycle now and India is on its way up, so there will be a lot of demand for steel in India.”
Copper expansion
In recent years, Rio Tinto has focused on building out its copper production capacity, as the metal becomes increasingly valuable amid the clean energy transition.
Stausholm said the company is ramping up production at its Oyu Tolgoi copper mine in Mongolia following years of delays, cost overruns and disputes with the local government.
“We have had an asset that we have developed for many years that still hasn't given us revenue, (but) the technical ramp-up is going very well,” he said, adding that it will be the fourth-largest copper mine in the world at peak production.
“It will generate a lot of revenue, so copper is a very important division for us. It will be very profitable and it's certainly growing.”
Aluminum presence in Canada
Stausholm said the “heart” of Rio Tinto’s aluminum business lies in Canada’s Saguenay–Lac-Saint-Jean region, where around half of the company’s global aluminum production is based. The miner also has aluminum projects in British Columbia, which he called “massively impressive.”
Stausholm also touted Rio Tinto’s production of aluminum in Canada as “the lowest carbon business in the world,” referring to the company’s use of hydroelectric energy to power the projects.
“We both have our own lakes and own the hydropower stations and we buy hydro energy… Canada is blessed by having hydropower,” he said.
“We are producing the lowest CO2-intense aluminum on the planet – we still have to get a premium for that and the prices unfortunately have fallen, so we have had limited profitability, but I'm quite bullish about the future of aluminum.
Early signals are showing cooling wage growth in Canada
Randy Thanthong-Knight, Bloomberg News
The Bank of Canada is tracking wage growth as one of its key metrics to determine the appropriate timing for interest rate cuts. Early indicators suggest slower gains are ahead.
Wages are still running hot and aren’t yet slowing at levels that could give policymakers confidence inflation is on a sustained path downward. But a period of outsized compensation increases may be over.
Average union wage settlements rising more than 5 per cent are becoming more rare. Wage growth for permanent employees is expected to decelerate to 5.1 per cent in February from 5.3 per cent a month earlier, according to the median estimate in a Bloomberg survey of economists ahead of jobs data to be released Friday.
Across 20 sectors in Statistics Canada’s most recent payroll employment survey, average weekly wages in December were lower than their respective peaks in 15 industries, with only five still recording new highs.
“I expect wages to cool off as the labour market does,” said Brendon Bernard, senior economist at job-listing website Indeed. “It’d be surprising if they don’t start slowing down this year with firms’ expectations coming down, posted wages and salaries gradually edging down over time.”
Posted wage growth on Indeed ticked down below 4 per cent early this year. Small and medium-sized firms surveyed by the Canadian Federation of Independent Business expect wages to rise 2.5 per cent in the next year, extending a descent from the mid-2022 peak when the jobless rate was at record low.
Compensation tends to adjust slowly to rising prices due to the duration of contracts. But these signs are pointing to Canada’s softer labor market — which has seen immigration-driven labor force gains outpacing job creation — beginning to influence compensation negotiations and settings, resulting in slower gains.
Bank of Canada policymakers view wage growth as a lagging indicator of labour market activity and believe that past gains largely reflect catch-up with the cost of living. On Wednesday, when the central bank held the policy rate steady for a fifth straight meeting, Governor Tiff Macklem said there are now “some signs that wage pressures may be easing” as the labor market comes into better balance.
“Wages are way past the peak and are trending down. We’re about 60 per cent of the way there, so at that trend, it would probably take a bit more than six months to normalize,” said Simon Gaudreault, CFIB’s chief economist. Price increase plans — an indicator of inflation — also show a similar trend, he said.
In collective bargaining across Canada, the average annual increase of major wage settlements fell to 3.9 per cent in November, compared with 5 per cent a month earlier. In Ontario, Canada’s most populous province, the share of private-sector employees who saw average annual wage increases of 5 per cent or more declined to 5.1 per cent last year, from 13.4 per cent a year earlier. The share of public workers who saw similar gains dropped to 0.6 per cent, from 4.9 per cent in 2022.
To be sure, despite signs of slowing wage growth across different metrics, unions and their members are still pushing for higher wage gains. That’s even after inflation eased to 2.9 per cent early this year.
“It hasn’t changed our viewpoint because the reality is that you’re not yet feeling any relief,” said Bea Bruske, president of the Canadian Labor Congress.
“Although a downward trend might have started, the reality is that people are still living paycheck to paycheck. Unless you can deal with that issue, we’re still going to see an increased, heightened focus on making more progress at bargaining tables.”
Robots and drones to work in Kelowna, B.C., orchards in 'precision farming' project
The Canadian Press
Drones and robots will be put to work in the orchards of Kelowna this spring as part of a pilot project to promote what the equipment maker calls "precision farming."
The city is collaborating with B.C. company InDro Robotics to use its aerial drones and ground-roving industrial robots to patrol 80 hectares of apple, pear, and cherry trees to monitor fruit health and growth.
A statement from the city says the equipment will help farmers better manage their crops.
InDro Robotics CEO Philip Reece says in the statement that autonomous robots and drones can inspect crops and provide real-time data on plant health, soil moisture and infestations.
Reece says the pilot project will last two years, with funding from Agriculture and Agri-Food Canada.
Data gathered by the drones and robots will be stored by the city and is expected to help farmers increase yields and improve resiliency amid climate change, the statement says.
The selection of farms for the project is being co-ordinated with the Regional District of Central Okanagan.
"As we embrace the future of agriculture, we're not just introducing robots and drones — we're ushering in a new era of precision farming,” said Reece.
Mayor Tom Dyas said in the statement that agriculture played an important role in the city's economy, occupying more than 40 per cent of the city's lands, and was essential to the city's "cultural identity."
He said the city council was committed to supporting innovative ideas to help farmers better navigate changing conditions.
This report by The Canadian Press was first published March 6, 2024.
Alberta coal mine moves ahead without permits federal officials say are needed
Bob Weber, The Canadian Press
Environmental groups are asking Ottawa to enforce its rules on an Alberta coal site that has started building an underground test mine without fisheries permits that officials have said are required.
"They can't just sit back and wait for habitat destruction to occur," said Ecojustice lawyer Dan Cheater. "We'd like to see them take action."
Coalspur Mines is planning a large expansion of its Vista thermal coal mine near Hinton, Alta., which would make it the largest thermal coal mine in North America. The company is also planning an underground test mine on the site to determine the feasibility of subsurface mining.
In 2020, then-federal Environment minister Jonathan Wilkinson ordered a joint federal-provincial review of both the expansion and the test mine. That review collapsed last fall when the Supreme Court of Canada ruled Ottawa's Impact Assessment Act was unconstitutional.
But by then the Department of Fisheries and Oceans had reviewed plans for both projects and decided it required permits under two different pieces of legislation.
"DFO indicated that the physical activities would require a Fisheries Act authorization," says the 2021 analysis report from the Impact Assessment Agency of Canada.
"The physical activities may also potentially require the exercise of powers ... such as a Species at Risk Act permit for impacts to Athabasca rainbow trout or other species at risk."
The department has been in contact with Coalspur but has not begun an investigation, said Fisheries spokesman Robert Rombouts.
"The company is obliged to comply with the acts and failure to comply may lead to enforcement action," he said in an email.
Meanwhile, work on the underground mine has begun.
"The company started construction work, but it’s limited to the underground portion of the mine," said an email from Renato Gandia, spokesman for the Alberta Energy Regulator.
"Coalspur has not commenced mining activities at Vista Test Underground Mine. As of Dec. 31, 2023, no coal has been mined at the underground mine and the portal has not been constructed."
The company has received all necessary provincial permits for the test mine. Coalspur has argued that because the test mine doesn't expand the mine's overall footprint, no additional permits are required.
"The (test mine) simply represents an alternative mining method within the existing and approved permit boundary," says its project description. "The (test mine) does not represent additional disturbance beyond the boundaries of the existing Phase I permit area."
Officials from Coalspur did not respond to an interview request.
Federal officials found several reasons for concern, including possible changes to nearby streams from dewatering of the underground mine and impacts of underground mining on groundwater.
"The (test mine) includes mining underneath tributaries of McPherson Creek," says the assessment agency's analysis. "The processing and waste management associated with the physical activity also have the potential to adversely affect critical habitat, due to the location of tributaries within and surrounding the ... lease area within which the (test mine) is located."
Area waterways are habitat for the endangered Athabasca rainbow trout and the bull trout, Alberta's provincial fish.
Ecojustice, acting for two local environmental groups, has written two letters to the federal Fisheries department asking for it to enforce the rules before damage is done.
"We know what will happen once work has started on both the underground mine and this future expansion," Cheater said. "Department of Fisheries and Oceans has confirmed what the expected impacts are.
"Regardless, Coalspur is forging ahead."
A revamped environmental assessment act is expected this spring, with draft regulations on coal mine effluent in the fall, Environment Canada spokeswoman Kaitlin Power said in an email.
"It is expected that Vista coal mine, if it moves forward, would be subject to these regulations," she wrote.
"Regardless of whether the Vista Coal Underground Mine Project and Vista Mine Phase II Expansion Project in Alberta undergo a federal impact assessment, they must comply with all relevant federal statutes. As such, they may require federal permits or authorizations."
Cheater said companies shouldn't be able to take advantage of an artificial gap in environmental legislation while Ottawa rejigs it.
"We're in an interim period where projects like this and potentially others are not going to be subject to an environmental assessment. But that doesn't mean the federal government can sidestep its obligations to protect the environment."
This report by The Canadian Press was first published March 7, 2024.
Manitoba government plans to end restriction on labour agreements for big projects
The Manitoba government is planning to lift a ban on project labour agreements — deals that require non-unionized workers on large projects to be governed by the same rules and benefits as their unionized counterparts.
Labour Minister Maya Marcelino introduced a bill Wednesday that would, if passed, repeal a ban enacted by the former Progressive Conservative government.
"It's going to mean that we're going to be able to have major projects done on time and within budget," she said.
But the Opposition Tories said the move by the NDP government would drive up costs, in part by dissuading non-union companies from bidding for work.
"I think the best bang for the dollars that Manitobans can ask for is to get as many businesses or contractors bidding on these jobs," interim Tory leader Wayne Ewasko said.
Project labour agreements set out terms and conditions for a wide array of workers, some represented by different unions, on large-scale projects. The aim is to set wages, benefits and other items while forbidding any strike or lockout for the duration of the project. Workers, even non-union ones, pay dues and are covered by the same rules as unionized ones.
The dispute over project labour agreements came to the fore in Manitoba during the $628-million expansion of the Red River Floodway, which protects Winnipeg from rising water.
The Tories accused the NDP government of the day of driving up costs through what they called "forced unionization." The NDP said the agreement on that project ensured no work stoppages and a firm timeline.
After the Tories won the 2016 election, they banned project labour agreements. Marcelino said Manitoba is the only province with such a ban.
Merit Contractors Association, which represents open-shop firms, said it was not pleased with the NDP government's move.
"It means increased costs to their company, it means increased costs to the taxpayers ... and less competition," said Yvette Milner, the group's president.
The NDP promised in last year's election campaign to be more friendly to labour than the Tories, who had also frozen public-sector wages and cut positions in the civil service.
The NDP has hinted other labour bills will come this spring, including one that could ban the use of replacement workers during strikes and lockouts, similar to laws in British Columbia and Quebec.
This report by The Canadian Press was first published March 6, 2024.
MPs to move on AI bill without testimony from Canadian companies: business group
Anja Karadeglija, The Canadian Press
The Canadian Chamber of Commerce says it is seriously concerned Canadian businesses weren’t able to testify on proposed federal artificial intelligence legislation.
While the House of Commons industry committee heard from Big Tech companies, the group says Canadian businesses weren’t given the opportunity to appear in front of MPs on the newer AI piece of Bill C-27.
In November, the innovation minister outlined numerous amendments the government plans to make to the AI portion of the bill, the Artificial Intelligence and Data Act.
"Without a plethora of witnesses testifying on the Minister's substantial revisions to the bill, we believe that AIDA stands to pass without proper consultation, informed discussion, or fair expectations for feedback," the group said in a brief published on the committee site Wednesday.
The chamber said that underscores "why we recommend the Committee to allow for a robust public consultation it desperately needs and which businesses across Canada deserve."
Following Innovation Minister François-Philippe Champagne’s proposed amendments, the committee studying the bill only held five meetings, in which Canadian companies didn’t have a chance to appear, it said.
With the proposed changes, the bill has effectively become "a fundamentally new piece of legislation," the chamber argued.
It said it is "seriously concerned about the lack of Canadian companies having had the opportunity to testify, particularly (small and medium enterprises), the backbone of the Canadian economy."
The committee has now finished its study and will begin the process of amending the bill in April, without appearances from any more witnesses.
Bill C-27 would update Canada’s privacy laws and introduce Canada’s first federal legislation specifically aimed at artificial intelligence, which would introduce new obligations for "high-impact" systems.
Ulrike Bahr-Gedalia, senior director of digital economy, technology and innovation at the Canadian Chamber of Commerce, said AI is now embedded in business processes.
"I would think the majority of companies are using AI in some kind of shape or form," she said in an interview.
Bahr-Gedalia said smaller businesses will have to comply with the law, and it would be "very troublesome" for them to have to do that without having a chance to voice potential challenges they foresee with the legislation.
Audrey Champoux, a spokesperson for Champagne, said that in recent months the government consulted with "academics, experts, civil society and the business community, including the Chamber of Commerce."
She said in an emailed statement the committee has been studying the bill since the fall of 2023, "hearing from over 100 witnesses and receiving over 70 written submissions. We look forward to continuing our work to get this legislation across the finish line."
This report by The Canadian Press was first published March 7, 2024.
Survey finds 95% of Canadian business leaders worried about AI-related fraud
Daniel Johnson , BNN Bloomberg Mar 7, 2024
The overwhelming majority of Canadian business leaders say they are concerned about the risks associated with AI-generated deepfake scams, according to a new survey.
KMPG Canada surveyed 300 Canadian organizations that were victimized by fraud and found that 95 per cent of leaders surveyed said they are very concerned that deepfakes have increased risks associated with fraud at their organization. Another 91 per cent of respondents indicated they are worried that generative AI will provide criminals with increased abilities to engage in corporate misinformation and disinformation campaigns by leveraging deepfake technology.
"Respondents overwhelmingly told us the fraud landscape is becoming more complex, with 95 per cent saying generative AI and social engineering scams make it easier for fraudsters to deceive, manipulate, misrepresent and conceal their crime. As fraudsters are becoming increasingly sophisticated in their attack methods, it's more and more challenging to deter criminals," Enzo Carlucci, national forensic leader at KPMG in Canada, said in a press release Thursday.
The survey also found that 31 per cent of organizations that had experienced external fraud were targeted by misinformation or disinformation efforts, which included false or misleading information circulating on social media.
“Organizations need to find new ways to strengthen their anti-fraud programs and stay one step ahead of scammers, or else they could be facing increased financial, legal, regulatory and reputational risks,” Carlucci said.
Just under half of respondents, 47 per cent, indicated their organization is actively leveraging new technologies – such as AI, automation or biometrics – to reduce the risk of fraud.
The survey also found that fraud and crime-related occurrences cost nine in 10 Canadian companies up to five per cent of profits over the previous 12 months.
"In the current economic environment, many companies are struggling to stay profitable, so any profits that are lost to fraud is too much," Carlucci said.
