Saturday, May 11, 2024

BHP-Anglo American deal raises alarm in Japan’s steel industry

Reuters | May 9, 2024 |

Hot steel on conveyor belt – Image from Adobe Stock Photos

Japanese steelmakers have raised concerns with Australian authorities that BHP Group could become too dominant in the global supply of coking coal if it goes ahead with a takeover of Anglo American.

Australia is the world’s biggest exporter of coking coal and top supplier to Japan, making up around 60% of its imports, with most of the steel-making ingredient coming from the state of Queensland, where BHP and Anglo American are the two largest producers.

Steelmakers’ concerns about BHP’s coking coal market power could derail a deal if the Australian giant comes back with a revised bid for Anglo American, after being rebuffed with a $39 billion offer last month.

“BHP already has a large share of the supply of high-quality hard coking coal in the seaborne trade, and we will take measures to ensure that further oligopolization will not impede sound price formation and stable supply,” a JFE Steel spokesperson said, declining to elaborate on what measures they could take.

Representatives of Japanese steelmakers met with Queensland government officials raising alarm bells that if a deal went ahead it would concentrate the world’s top quality coking coal mines in the state’s Bowen Basin in the hands of BHP, two people familiar with the talks said.

The combined group would control 44 million tons, or about 13%, of the seaborne coking coal market, data from consultants Wood Mackenzie shows. That comes even as BHP’s production has fallen after sales of some mines in recent years.

“In general, we are against the (BHP-Anglo) union as it would create a supplier with a huge market share, especially in the hard-coking coal market,” said a source at a Japanese steel maker, adding that it was closely monitoring the situation.

“We, for our part, would not want BHP to buy Anglo and gain a stronger price competition power.”

Queensland Deputy Premier and Treasurer Cameron Dick said BHP would need to ensure its coal remains competitive or risk losing state government support. “We work closely with our Japanese customers and are aware of their concerns,” Dick told Reuters.

“BHP needs to explain to Japanese steelmakers and the market more broadly how it will ensure the ongoing supply of steelmaking coal remains competitive,” he said.

BHP declined to comment for this story but has said expanding in high quality coking coal was a main driver of its tilt for Anglo.

Anglo American declined to comment.

Coking coal squeeze

Japan’s Fair Trade Commission has the authority to investigate a BHP-Anglo American transaction and could block a deal if it found it would harm Japanese companies, two anti-trust lawyers in Tokyo said.

However, if a deal was deemed anti-competitive, the commission would likely ask BHP to offer a remedy, which could include a coal divestment, one of the two lawyers said. They both declined to be named due to the sensitivity of the issue.

The Fair Trade Commission declined to comment whether it has received any request to examine the BHP-Anglo deal.

Like JFE, Kobe Steel said it is keeping a close eye on the proposed deal and a potential increase in BHP’s market power. Nippon Steel was not immediately available for comment.

Key among steelmakers’ concerns is that BHP has stressed it will not invest to expand production in Queensland after the state hiked coal royalties without industry consultation, a source familiar with the matter told Reuters.

BHP CEO Mike Henry said last year the company “will not be investing any further growth dollars in Queensland under the current conditions”.

Anglo’s Moranbah North and Grosvenor mines are effectively an extension of BHP’s Goonyella mine, which produces a type of coal favoured by Japan and India.

The Japanese are facing growing competition from India for that coal. BHP already sends 40% of its coking coal to India and expects the country’s demand for the steel-making ingredient to double by the end of the decade, CFO Vandita Pant said in March.

Japan could lobby anti-trust authorities in other jurisdictions to block a deal if it believes there will be an impact to the competitiveness of the global coking market, as it did when BHP made a bid for its iron ore rival Rio Tinto in 2007, one of the lawyers said.

Queensland could also complicate a deal.

“The transfer of mineral assets in Queensland are subject to a number of state government approvals. No resources company should take those approvals for granted,” Treasurer Dick said.

(By Melanie Burton, Yuka Obayashi and Katya Golubkova; Editing by Sonali Paul)

CRIMINAL CAPITALI$M

Red Pine says former CEO tampered with Wawa gold assays

Staff Writer | May 10, 2024 |

Core shack at Wawa Gold project. Image from Red Pine Exploration.

Further investigation by Red Pine Exploration (TSXV: RPX) into the reporting inconsistencies on its Wawa gold project assays has led to the belief that its former CEO was the culprit of an “unauthorized manipulation” of certain results.

The conclusion was drawn after reviewing the chain of custody of assay results that were sent from Activation Laboratories of Ontario and those later used for public disclosure, which had shown inconsistencies.

During the investigation, the Canadian gold explorer found that while the correct drill core assays were sent via email by Actlabs from the spring of 2015 to January 30, 2024, they were only addressed to its former CEO, who the company believes tampered with some of the results and sent them to company staff.

The results were subsequently downloaded into Red Pine’s database and later used for a variety of purposes, including in-house resource modelling and the NI 43-101 technical report dated June 21, 2023 (with a resource effective date of May 31, 2019), the company claimed.

In total, 532 out of approximately 98,000 drill core assay results in the overall database appear to have been manipulated since Red Pine acquired the Wawa gold project in 2014.

The news release did not identify the former chief executive. However, Quentin Yarie held the CEO role from July 2015 until Feb. 21 this year.

Shares of Red Pine plunged again on the latest twist, dropping 26.1% to C$0.085 by 11:50 a.m. ET Friday, for a market capitalization of C$15.5 million ($11.3m). Earlier this month, the stock had recorded a 61% drop after the company withdrew the prior gold assay results.

The company divided its investigations over two distinct periods: 1) the assays received between 2014-2019 that resulted in the mineral resource set out in the technical report; and 2) the period from 2019 to the present, during which assay results were disclosed through press releases.

For the first period, Red Pine determined that the reporting inconsistencies resulted in certain reductions of the previously reported mineral resources for the Wawa gold project. The Surluga area would have an estimated loss of 39,500 to 54,000 oz. from the inferred part of the resource, while the Minto deposit would lose 8,000 to 12,000 oz. from the indicated part and 16,000 to 20,000 oz. from the inferred.

For the second period, the company said the investigations are continuing and hopes to provide an overview of the manipulation implications on the drilling results prior to market open on May 15, 2024.

China Trounces Korea Taking Three-Quarters of Shipbuilding Orders in April

The competition for new orders in the shipbuilding market continues to grow with Chinese shipyards pulling dramatically ahead of the South Korean yards for the second consecutive month. Analysts highlight that it illustrates the differences in strategies between the two countries, a position that China is likely to expand on going forward.

Clarkson Research released the latest monthly figures showing the growing divergence. Total orders they calculated reached 4.71 million compensated gross tons for a total of 121 vessels. Overall, the market was up 24 percent year-over-year.

The two countries typically dominate the market with some months a nearly even split in orders or at the beginning of 2024 South Korea was booking larger total orders. However, in April the Chinese yards booked 76 percent of the total orders. Clarksons calculates a total of 91 ships representing 3.58 million CGT. South Korean yards by comparison only received orders for 13 ships or just 670,000 CGT. That represented only a 14 percent market share. By comparison, in March, Chinese yards received 43 percent compared to the South Korean’s 38 percent.

The global order book Clarksons reports stands at 129.9 million CGT, with the backlog down just one percent in April. Chinese yards hold 50 percent of the orderbook (64.9 million CGT). South Korean yards have 30 percent of the orderbook (39 million CGT).

The Export-Import Bank of Korea’s Overseas Economic Research Institute highlights that South Korea’s industry is following a selective order-taking strategy. The yards are focusing on high-value new builds as well as emerging technologies for eco-friendly and technologically advanced vessels. In the first quarter of 2024, just over half of the orders received by the South Korean yards were for liquified petroleum gas (LPG) carriers. The emerging category of very large ammonia carriers was just over 20 percent of the orders. Korean shipbuilders failed to take any orders for VLCCs last year and are now seeing a slowing in containership construction orders.

Analysts are questioning South Korea’s strategy. They note that orders for LNG carriers which have been among the highest-priced vessels have likely peaked driven by the 104 orders placed mostly with the Korean yards linked to Qatar’s expansion. Qatar Energy reported it has completed the second tranche of its orders signing a massive contract with China for 18 Q-Max carriers, the largest LNG vessels.

China’s yards have built large production capacities and are very competitive on price. Analysts highlight that China is now targeting more of the mid-sized vessel construction orders previously led by Japanese yards. In addition to the Q-Max order last month, Chinese yards received the only large orders for new containerships in 2024. China’s yards are also breaking into new technologies including methanol-fueled vessels.

All of this comes as the United States announced it would start a trade investigation into the Chinese government’s support of its shipbuilders. Five U.S. labor unions lead the protest alleging unfair competition and subsidized steel helping China to build its dominance in shipbuilding. They are calling for tariffs and more U.S. government support to rebuild domestic shipbuilding capabilities.

HD Hyundai Displays Prototype USV Combining AI and Autonomous Navigation

HD Hyundai released a concept for a stealth USV that combines autonomous navigation and AI (HD Hyundai)

South Korean shipbuilder HD Hyundai unveiled its first prototype for its entry into the emerging uncrewed surface vessel (USV) market. It comes as the shipbuilder looks to develop new high-value markets leveraging its autonomous navigation technologies and is also targeting expanded roles in naval shipbuilding.

Called Tenebris the company showed the prototype at a tradeshow in Washington D.C. along with its new partner Palantir, a U.S.-based leader in applications of AI technology. HD Hyundai and Palantir announced a joint development agreement just a month ago for the USV market. At the time, they said the goal was to have their first vessel, designed for reconnaissance operations, on the market by 2026.

They point to the anticipated strong growth in the USV segment. Hyundai cited data that said it was nearly a $1 billion market in 2022 and within a decade could reach $2.7 billion. While the market is growing quickly, they contend that previously developed USVs are difficult to operate in rough environments such as high waves.

They said the intent is to combine autonomous navigation software from HD Hyundai’s subsidiary Avicus with Palantir’s Mission Autonomy system which deploys AI. Planatir they report is considered to be an AI leader with the U.S. Department of Defense, Navy, and Army already customers.

Tenebris is designed for reconnaissance missions where the enemy is nearby. The prototype design is for a vessel 17 meters (approximately 56 feet) in length. It would have a light displacement of 14 tons and combine autonomous navigation and AI capabilities. It uses a high-performance hull.

The concept is to replace manned vessels to perform surveillance and reconnaissance in dangerous areas. It could be used for mine searching and removal as well as other combat tasks.

HD Hyundai continues to work on the design to maximize the seaworthiness and range of the vessel. The goal is to ensure smooth and uninterrupted operations regardless of the sea conditions. They are also looking to enhance the vessel’s speed, payload, and stealth capacity.

The business plan calls for expanding the applicability of the USV. A second offering would be a combat USV.

Third Mate Ran MSC Auxiliary Aground When Captain Left for Meal Break

MSTS supply ship — Command was left to a junior officer while the master took a meal break (US Navy 2019 file photo)

A master’s decision to leave the bridge of his ship while it was maneuvering and a failure to follow navigational procedures are being cited as contributing factors in a U.S. Navy investigation into the 2023 grounding of the supply ship USNS Alan Shepard. While the incident was only a minor embarrassment to the U.S. fleet, the report calls into question the decisions of the civilian officers manning the Military Sealift Command vessel.

The Alan Shepard (23,000 light displacement) has been in service supporting the U.S. Navy as a dry cargo and ammunition ship for fleet replenishment since 2007. The ship is 689 feet (210 meters) in length with a 30-foot (9-meter) draft. She is currently supporting the U.S. 5th Fleet in the Middle East.

The ship arrived in Bahrain in July 2023 for repairs. According to the report, on July 15 she was navigating from a shipyard to a berth in the Khalifa Bin Salman Port. She became stuck on the shoals in the port that afternoon and spent the night stranded. The following day, tugs were able to refloat the vessel on the high tide.

The investigation found that port authority instructed the ship to wait in a holding area in the port until a pilot could join the Alan Shepard. The pilot was going to guide the ship to the berth.

At 4:49 p.m. the master of the Alan Shepard along with the navigator and the chief mate reported that they were leaving the bridge for a meal break. Heading out for dinner, the master handed the vessel to the third officer instructing him to “stay the course and keep the ship in the waiting area.”

The junior officer on the bridge continued to navigate the ship but became distracted by harbor traffic. He turned the Alan Shepard to avoid a fishing boat in the harbor which caused the vessel to ground on the shoals. The master had been off the bridge for approximately 20 minutes according to the report.

The report highlights the ship’s standing order said the master was required to be on the bridge whenever they were navigating near shallow waters. The investigation cites the master for not following navigation procedures.

After the vessel was refloated, a survey was conducted that found the hull, propellers, and other underwater structures had avoided any damage. Mostly it was reported that the ship had some minor scrapes. None of the 85 crew aboard were injured in the grounding.

Seven Crewmembers from Seized MSC Aries Depart Iran

MSC containership — Seven of the 25 crewmembers on the MSC Aries left Iran (file photo)

After weeks of being held in Iran and promises that the crew of the seized containership MSC Aries would be released, the governments of Portugal, India, and Pakistan confirmed that the first seven crewmembers had left the ship. Iran last week had said all the crew would be free to leave if the captain joined them and now it is being reported the crew will be released when their contractual obligations are completed.

Portugal as the flag state of the containership confirmed that seven people of the 24 still aboard the vessel had departed. They said specifically that the first release consisted of five Indian citizens, one Filipino, and one Estonian, who was the sole European Union citizen on board.

“The Portuguese government welcomes this development, for which it had strongly advocated for. Nonetheless, it reiterates to the Iranian Government that international law requires the immediate release of the remaining crew members and of the ship MSC Aries. Portugal will continue to make every effort to ensure that these international obligations are fully met,” the Portuguese Foreign Ministry said in a statement.

India’s embassy in Iran posted a message on X (Twitter) confirming that its five citizens had departed Iran last night and were making their way home to India. Previously, they had arranged for the sole cadet, a female, to travel home to India where she arrived on April 19, six days after the vessel was seized.

The consulate previously said that it had been able to arrange a visit to the crew and that they were in good health. They are continuing to call for the immediate release of the additional 11 Indian citizens aboard the MSC Aries.

The Philippines Department of Foreign Affairs said that its one crewmember was expected to arrive back in the Philippines today, Friday, May 10. They said they are working for the release of the three remaining Filipinos aboard the ship. “We hope for their eventual speedy return to their homes and families,” today’s statement said.

The vessel also has crewmembers from Russia and Pakistan. Iran had promised the Pakistan Foreign Ministry that it would repatriate its crewmembers while it was planning for a state visit to the country. However, there was no word on when these crewmembers might be released.

Iran reiterated its assertion that the MSC Aries broke international maritime law. They accused the vessel of turning off its AIS transmissions while in Iranian territorial waters and endangering the safety of navigation. The official position is that the vessel is detained under judicial review.

The seizure is widely seen as a retaliatory move against Israel coming shortly before Iran unleashed missiles and drones targeting Israel. The MSC Aries operates under a long-term charter to MSC but is owned by affiliates of Zodiac Maritime in which Eyal Ofer is the lead investor.

Report: Dali Will Move to Baltimore Berth Next Week for Investigators

Dali wreckage removal — Picture from May 7 shows the starboard bow is cleared as they set the charges to remove the bridge structure from the port side (USCG photo)

The authorities leading the recovery operation in Baltimore have declined comments on the timeline for the next steps including the removal of the Dali only saying that systematic preparations were underway and that they remain on target to open the full channel by the end of the month. The Baltimore Sun newspaper however is reporting that it obtained an email showing the vessel will be moved to the dock on or about Tuesday, May 14, and handed over to investigators.

The Unified Command alerted the media of a tentative plan subject to weather and other conditions for the controlled demolition of the section of the bridge on the bow of the Dali. It is scheduled for Saturday afternoon with teams then prepared to use the giant claws to remove the sections which should fall into the water around the ship. The goal has been to lighten the forward section of the Dali to refloat the vessel.

According to the Baltimore Sun, the vessel will be moved to the Seagirt Marine Terminal in the effort to reopen the channel. William Doyle, chief executive of the Dredging Contractors of America reports dredgers will be standing by in case they need to remove mud to free the Dali.

According to the report in the newspaper, the team from the National Transportation Safety Board is expected to reboard the Dali on May 14 and 15 to continue their investigation. The NTSB has already interviewed the crew and Maryland pilot who was guiding the ship at the time of the allision and has reviewed onboard data. A preliminary report providing an updated statement of the facts is expected to be released in the coming days, possibly shortly after they reboard the vessel.

Charges are set (black stripes) for the controlled demolition scheduled for Saturday afternoon (USCG)

The Baltimore Sun reports that lawyers and investigators involved in the various lawsuits including one from the City of Baltimore have been told they can schedule visits to the ship after the NTSB. The newspaper reports there will be two groups taken aboard with the vessel available starting May 20. They are being warned that the bow areas of the vessel may not be accessible as the recovery operation will still be underway.

It is unclear if the Federal Bureau of Investigations (FBI) plans to return to the ship. They boarded the vessel shortly after the incident seizing information. The Wall Street Journal reported earlier in the week that the FBI is involved in an investigation to see if the crew violated a U.S. law from the 1830s which says a ship’s officer or crew can be charged with manslaughter if their negligence or misconduct led to the death of the six road workers who were on the bridge. The paper says the law was passed after a series of steamboat accidents but was invoked as recently as the 2019 dive boat Conception case where a fire killed 34 people off the coast of California.

The U.S. House of Representative's Committee on Transportation and Infrastructure has also scheduled a hearing for May 15 to discuss the federal response to the bridge collapse. They have scheduled witnesses from the U.S. Coast Guard, Army Corps of Engineers, Federal Highway Administration and the NTSB.

With the sections of the bridge removed from the Dali and then the vessel removed from the area, Doyle says dredgers are prepared to complete the task of restoring the channel. Salvage crews will continue to remove the debris from the bridge while this week they recovered the body of the last of the six missing workers from the road crew.

The Port of Baltimore told The Wall Street Journal that it already has requests from about 20 vessels expected at the port in the week following the reopening of the channel. They reported that containerships, car carriers, and bulkers are all scheduling return visits to the port. Two cruise ships that are also scheduled to be sailing from the port are expected to switch back from temporary operations from Norfolk.

Video: Salvors Will Cut Baltimore Bridge Span Into Pieces With Explosives

Dali bridge deconstruction with explosives — Courtesy USACEq

On Wednesday, the unified command for the salvage of the boxship Dali released the first detailed description of its plan to remove a multi-thousand-tonne bridge truss from the ship's foredeck. Specialists are cutting precise holes in the bridge's girders and packing them with explosive charges, then wrapping the charges with a mat material. When all is ready and the button is pushed, the truss will be cut into a dozen pieces and will collapse into the water, falling safely away from the ship.

When the Dali hit and collapsed the Francis Scott Key Bridge in late March, the bridge's truss, deck and part of a support column came down on the ship's bow - pinning it to the muddy bottom of the channel. Almost all of this debris has been painstakingly cleared away, except for the largest section of the truss, which the team has labeled "section four." An animation released by the U.S. Army Corps of Engineers' Baltimore branch shows how the explosive charges will cut up this final section, without risking salvage personnel or lifting equipment during the removal.

The unified command has previously hinted at a simultaneous cutting method that would free up section four, but only recently confirmed that the team would use explosive charges. The process will be dramatic, but it will not be a Hollywood-grade fireball, the USACE said. The detonations will sound more like a string of fireworks, and there will be no vast bursts of flame. The crew is expected to stay safely aboard the ship throughout the process, a Coast Guard spokesman told local media earlier this week.

While waiting for the refloat operation to be finished, the Captain of the Port for Maryland has reopened the "limited access channel" next to Dali for commercially essential shipping. The waterway reopened Wednesday at 1900 and will remain open until 0600 on Friday. This time, the allowable draft has been increased to 45 feet from the previous restriction of 35 feet. This is nearly back to the normal depth of the federal channel, 50 feet - though the waterway is still much narrower because of the need to navigate around Dali and the truss section. A two-tug escort is required for all traffic. After the channel closes Friday, it will be shut until May 14 to allow salvors to continue their work.

Philippine Admiral Goes on Leave After Chinese Claims of a Secret Deal

A China Coast Guard vessel water-cannons a Philippine government vessel. The Chinese government claims it reached a secret deal for a "new model" for these interactions (PCG file image)

Days after China's foreign ministry claimed that Philippine defense officials had agreed to a secret deal to reduce tensions at a South China Sea flashpoint, the head of the Armed Forces of the Philippines' Western Command filed for personal leave.

This week, Chinese foreign ministry spokesman Lin Jian said that Beijing had agreed on a "new model" with the AFP's Western Command in order to manage the frequent confrontations at Second Thomas Shoal, where the Philippine military maintains a small garrison on a deteriorating shipwreck.

The China Coast Guard and Chinese maritime militia regularly interfere with the Philippine supply convoys that keep this outpost running, even though the reef is located within the Philippine exclusive economic zone. China claims a large swath of the Spratly Islands and the western Philippine EEZ as its own, even though an international tribunal has ruled against its claims.

Shortly after Lin announced that Manila had agreed to a "new model," AFP Western Command chief Vice Admiral Alberto Carlos filed to take personal leave. His command is currently in the middle of a large multilateral exercise with key foreign partners, including the United States.

The administration of Philippine President Ferdinand Marcos Jr. has fervently denied any agreement on a "new model," and one senior official called the claim a "devious machination of China."

"As far as the Philippine government is concerned, no such document, record or deal exists, as purported by the Chinese Embassy," the Philippine Department of Foreign Affairs said this week.

A spokesperson for the administration raised questions about the specifics of Vice Admiral Carlos' involvement. The admiral personally sustained injuries after a China Coast Guard water cannon attack during a trip to Second Thomas Shoal earlier this year. "If Vice Admiral Carlos entered into some sort of arrangement, why would he be water cannoned and injured? When you put the story together, it unravels," Philippine security council official Jonathan Malaya told local outlet PTV.

A spokesperson for the AFP denied that Vice Adm. Carlos' leave request was in any way connected to the "new model" controversy, and she asked reporters to respect his privacy.

"He applied for personal reasons, let's respect his decision to file [for leave], it's an inherent right of every individual to go on leave, for whatever reasons," AFP spokesperson Col. Francel Margareth Padilla said.

UK Supreme Court Decides Case Over $43M of Silver from WWII Shipwreck

Tilawa was lost in 1942 (note the gun fitted to the stern deck during World War II)

South Africa has won a long-running legal battle against a United Kingdom company over a silver treasure valued at $43 million that was salvaged from the wreck of a commercial ship sunk by the Japanese during World War II. The ss Tilawa is said to be the only cargo-passenger liner attacked in the Indian Ocean during World War II and has become known as the “Indian Titanic” due to the loss of 280 people.

The UK Supreme Court issued the verdict on the case after a British company Argentum Exploration laid claim to the silver that was recovered from the seabed in 2017. The company sought to be recognized as the voluntary salvor meaning that it could seek compensation for the recovery.

The silver bullion was part of the cargo that sank to the bottom of the ocean when the merchant ship Tilawa was hit by two torpedoes from a Japanese submarine on November 23, 1942. The silver was sold by the government of India and being transported to the South African mint to be used for coinage.

Built in England in 1924, the 137-meter (450-foot) vessel was owned by the British India Steam Navigation Company. The passenger/cargo liner was sailing from Bombay (Mumbai) India to Durban, South Africa carrying 732 passengers, 222 crew, and 6,472 tons of cargo, including 2,364 bars of silver bullion when it was hit.

A total of 280 passengers and crew died while 687 passengers were rescued by two ships nearby. The incident has been described as one of the deadliest in history, resulting in the ship frequently being called the “Indian Titanic.”

Argentum, a company owned by hedge fund boss Paul Marshall, organized the salvage operation after the wreck was located in 2017. It deployed the salvage vessel the MV Seabed Worker to lift the bullion at a depth of approximately 2.5 kilometers (1.5 miles) from the seabed. The silver was transferred onto another vessel, MV Pacific Askari, and transported to the UK, as Argentum believed the silver belonged to the UK government. The company went ahead to declare the find to the Receiver of Wreck as required by the Merchant Shipping Act.

A legal battle ensued after it was determined that the silver was the property of the South African government. Argentum sought compensation for the recovery. Under maritime law, it is possible to make a claim for voluntary salvage, which means a salvor can make a claim regardless of whether the owner of the property requested or consented to the salvage operation.

Initially, the High Court and Court of Appeal in the UK ruled in favor of Argentum, which argued that the silver was “in use or intended for use for commercial purposes” when it was being carried at sea in November 1942. South Africa as a foreign state sought sovereign immunity.

In its ruling, the UK Supreme Court held that the silver was not in use nor intended for use for commercial purposes. “Therefore, South Africa is entitled to immunity from Argentum’s claim against the silver,” said the judges in the 45-page ruling.

The judges held that the silver was procured for the production of coin for both the Union of South Africa and Egypt and that it was likely that the greater part of the consignment on board the vessel would be used for Union coinage. The intended use of the silver was therefore for a predominantly sovereign purpose. Last month, the two sides however reached a confidential, out-of-court settlement.

The case also helped to renew attention on the tragic plight of the Tilawa. Two organizations, the S.S.Tilawa Foundation and Tilawa 1942 seek to preserve and tell the story.

EU Forces Capture Pirates After Approach and Gunfire with Product Tanker

pirates captured — EUNAVFOR is reporting it took control of the six individuals in today's incident (file photo)

EUNAVFOR Operation Atalanta is confirming that one of the frigates involved in its security operation off Somalia has “taken charge” of a suspected band of pirates after the group attempted an assault on a product tanker. The vessel was able to elude the pirates after an exchange of gunfire highlighting the continued danger in the Gulf of Aden and western sections of the Indian Ocean.

The approach took place approximately 100 nautical miles north of Bosaso, Somalia, and west of Socotra island, Yemen, where the security operations have warned that pirate action groups are active. Earlier this week the Maritime Information Cooperation & Awareness Center warned that a possible pirate mothership was operating approximately 350 nautical miles east of Socotra.

This morning a small boat with six individuals approached the chemical tanker Chrystal Arctic (74,900 dwt). The vessel registered in the Marshall Islands was heading west toward Egypt on a trip from India. Reports indicate the individuals in the small boat were carrying weapons and a ladder.

Accounts vary if the pirates or the security guards on the tanker fired the first shots. Some indications are that the guards fired warning shots and the pirates returned fire while others said the pirates fired first. The tanker took evasive actions and the pirate boat withdrew.

Operation Atalanta reports that one of the frigates active in its operation was nearby and responded. It was the first to reach the scene and took charge of the six individuals. They deemed the conditions of the skiff unsafe and were also treating some of them with “injuries of varied severity.” It was unclear if the injuries were from today’s incident.

They reported that the forces were conducting an investigation into the event. The unnamed frigate was gathering evidence for an assessment of the situation.

Last week, Operation Atalanta warned that it believed there were at least two pirate groups active in the region. During April they said there had been four suspicious approaches and since November 2023 they recorded a total of 31 incidents. Atalanta continues to assess the threat as “Moderate (where an attack is a Realistic Possibility)” off the Somali coasts.

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