Tuesday, September 03, 2024

GM delays additional $330m investment in Thacker Pass, Lithium Americas says


Reuters | August 30, 2024 | 


Thacker Pass in Nevada. (Image: Lithium Americas)

Lithium Americas said on Friday automaker General Motors has delayed the second tranche of investment, worth $330 million, in the miner until the end of the year.


GM had announced an investment of $650 million, in two tranches, in Lithium Americas last year to help it develop the Thacker Pass lithium mining project in Nevada, which holds enough of the battery metal to build 1 million electric vehicles annually.

The lithium miner said it is exploring alternative structures for the investment and extended the date for deal closure to Dec. 20. In case, the deal is not closed on their end by that date, Lithium Americas will have to grant additional rights to the automaker.

GM did not immediately respond to a Reuters request for comment.

The investment conditions for the second tranche included the successful execution of a $2.26 billion loan agreement with the US Energy Department, which the company is rushing to finish by the end of the year amid uncertainties regarding the results of the US presidential election.

Given Donald Trump’s pledge to “end the electric vehicle mandate” and plans laid out by former Trump administration officials in the Project 2025 document to shutter the Loans Program Office, mining companies and others are rushing to close loan agreements before Joe Biden leaves office in five months.

(By Sourasis Bose; Editing by Krishna Chandra Eluri)
CEO of Korea’s No. 2 zinc producer arrested after fatal accident

Bloomberg News | August 30, 2024

Zinc smelter. Stock image.

The chief executive officer of South Korean zinc producer Young Poong Corp. and another senior staff member were arrested over a fatal accident last year at the company’s Seokpo smelter.


The District Court of Daegu approved the arrest of CEO Park Young-min, and Bae Sang-yoon, the head of the smelter, on Thursday. Prosecutors allege the executives violated the Serious Accidents Punishment Act, and are criminally liable for the accident that occurred in December


A spokesman at Young Poong confirmed Park and Bae had been arrested, but said the firm doesn’t expect any disruption to production.

Young Poong, Korea’s No. 2 zinc producer, has been rattled by a series of industrial accidents in recent years, including a fatal arsenic poisoning and a worker getting heatstroke. It’s also involved with legal disputes with its decades-long partner Korea Zinc Co., as well as the government over allegedly breaching environmental regulations.

The company was hit with a plant suspension order in 2020 for violating the Water Environment Conservation Act, although that’s since been put on hold while it appeals the decision.

Young Poong’s shares have plunged almost 40% this year, dropping 3.3% on Thursday and then partially rebounding to close at 315,500 won on Friday.

(By Heesu Lee)




Mexico’s Tizapa mine offline due to strike, Penoles says

Reuters | August 30, 2024
 |
Credit: Industrias PeƱoles

Industrias Penoles announced an indefinite halt to operations at its Minera Tizapa unit in the State of Mexico on Friday due to a strike called by the national mining union.


The union, which represents the mining, metallurgical, and steel industries, is citing violations of a collective labor agreement signed in April, Penoles said in a filing.

The company, Mexico’s top silver miner, stated that it fully complies with the obligations of the labor agreement and local labor laws. It also said it will adhere to the appropriate legal and administrative procedures to resolve the conflict.

The mine, which Penoles holds a 51% stake in, extracts lead, zinc and copper.

In May, US trade authorities said Penoles and Mexican authorities had resolved alleged workers rights violations at Tizapa after Washington requested a review through the USMCA trade deal.

(By Kylie Madry and Brendan O’Boyle; Editing by Aida Pelaez-Fernandez)

 WWIII

Video: Third Collision Incident Between Chinese and Philippine Coast Guards

Chinese Coast Guard hits Philippine Coast Guard
The Philippines asserts a Chinese vessel collided three or four times today with its Coast Guard cutter (PCG)

Published Aug 31, 2024 3:38 PM by The Maritime Executive

 

 

For the third time over the last two weeks, Chinese and Philippine forces have faced down each other’s vessels resulting in a collision and accusations from both sides. The Chinese Coast Guard vessel 5205 and the Philippine Coast Guard vessel BRP Teresa Magbunua were involved in today’s altercations. No injuries were reported to personnel, but the Philippines released pictures of a hole in its coast guard vessel and several dents they said were caused by the deliberate actions of the Chinese vessel.

Tensions continue to be high between China and the Philippines focusing on the region around Sabina Shoal, a small rock outcrop in the Spratly Islands approximately 85 miles west of the Philippine province of Palawan. Internationally, it is recognized as in the Philippine EEZ while China also lays claim to the area rejecting international declarations.

Since April 2024, the Philippines has been maintaining a presence in the area which is east of Second Thomas Shoal which has been the previous area of contention. The Philippines asserts that China was planning on building an outpost on Sabina Shoal while the Chinese assert the Philippines does not have a right to be in the area. Last week, China filed an international protest citing approximately five months of Philippine presence in the region.

According to the reports, today’s incident began after the Philippine Coast Guard cutter Teresa Magbanua, a 320-foot cutter which is also the largest in the Philippine fleet, raised anchor and began maneuvering in the disputed region. The vessel has been anchored in the area since April. The Chinese Coast Guard detected the movement of the Philippine vessel and placed its vessels in the area to block the Philippines.

 

 

China issued a statement after the incident saying it had made repeated warnings to Teresa Magbanua. The Chinese said the vessel was maneuvering and acted “in an unprofessional and dangerous manner.” They assert the Philippines vessel “deliberately collided” with the Chinese Coast Guard vessel 5205.

The Philippines released a series of videos to back up its accusations that it was the Chinese who were the aggressors. In a briefing, the Philippines presented its case asserting the Chinese vessel approached Teresa Magbanua and carried out a series of dangerous maneuvers. They claim the Chinese Coast Guard was crowding the vessel resulting in the first collision. They assert the Chinese vessel 5205 turned around and reached the other side of the Philippine vessel again colliding and then maneuvered and deliberately rammed the Philippine vessel. The Philippines seems to be asserting there were three or four collisions during today’s altercation before both sides withdrew.

 

 

The incident took place at midday local time and was followed by the statements and accusations from both sides. The U.S. Ambassador quickly issued a new statement of support for the Philippines and condemned the actions of the Chinese Coast Guard vessel.

It was the third altercation in August with the Philippines also accusing the Chinese of ramming their vessel on August 19. Last week they asserted the Chinese rammed a Philippine vessel, used a siren and horn, and water cannons. The Philippines contends it was conducting humanitarian missions to bring supplies to its fishermen in the waters of Sabina Shoal. Last week, the Philippine Coast Guard vessels withdrew and the resupply was conducted days later with a helicopter.

The Philippines and China came to an agreement for the resupply of the Coast Guard vessel at Second Thomas Shoal. However, the Chinese have repeatedly demanded that the Philippines immediately withdraw BRP Teresa Magbanua from Sabina Shoal. Last week, the Philippines said it has no intention of removing its vessel.

Today‘s altercation between the Chinese and the Philippines came as Japan was also protesting Chinese incursions. Japan filed a formal protest saying Chinese vessels had entered Japan’s territorial waters and that a Chinese aircraft also entered Japan’s airspace. The Chinese denied the Japanese claims saying it has no intention to violate any country’s airspace


The Philippines Disrupts China’s Scientific Research in Xianbin Jiao


The video obtained by GT shows how the Philippine side dangerously disrupted and intervened in China’s scientific research in waters off China’s Xianbin Jiao in the #SouthChinaSea. Similar actions occurred when China conducted marine ecosystem research in Ren’ai Jiao.


 

Australia Conducts First Nuclear-Powered Sub Maintenance with USS Hawaii

nuclear-powered submarine
USS Hawaii off Diamond Head crater while transiting to Pearl Harbor in 2009 (USN)

Published Sep 2, 2024 12:18 PM by The Maritime Executive

 


The Royal Australian Navy recently participated in the first maintenance of a nuclear-powered submarine in Australia using local personnel. It is being hailed as the next key step in the AUKUS partnership designed to bring nuclear-powered submarines into the Australian fleet.

USS Hawaii, a Virginia class submarine commissioned in 2007 was recently sent to HMAS Stirling in Western Australia for a maintenance period. She was accompanied by USS Emory S. Land, a U.S. service ship with equipment and crew dedicated to providing maintenance work for U.S. submarines.

Personnel from the Australian Navy were working alongside the U.S. Navy counterparts and contractors from Australia for the Submarine Tendered Maintenance Period. In preparation for the project, over 30 Australian Navy officers and sailors were embedded as part of the crew of USS Emory S. Land since January 2024 to build the skills, knowledge, and experience in nuclear-powered submarine maintenance. One of the Royal Australian Navy officers to graduate from the Submarine Officer Basic Course and naval nuclear training in the U.S. is also part of the crew of USS Hawaii.

 

Accompanying USS Hawaii was the sub tender Emory S. Land (USN)

 

The Australian Navy called the effort “the most practical demonstration of progress to implement the AUKUS Pathway to date.” Its personnel directly participated in the maintenance of the nuclear-powered submarine. The Australians were to undertake hands-on learning, and conduct, and observe the maintenance with the U.S. Navy personnel.

Port visits by U.S. and UK nuclear-powered submarines for projects such as this maintenance the Australian Navy said are a vital part of building Australia’s capability and capacity to support maintenance on nuclear-powered submarines in the lead-up to Submarine Rotational Force – West (SRF-West) commencing in 2027. 

“The rotational presence of one UK Astute class and up to four U.S. Virginia class submarines at HMAS Stirling as part of SRF-West will further accelerate Australia’s ability to be sovereign ready to safely and securely own, operate and maintain Australia’s future fleet of conventionally-armed, nuclear-powered submarines from the early 2030s,” writes the Australian Royal Navy.

They noted that during World War II, the U.S. Navy routinely conducted maintenance on U.S., UK, and Dutch submarines in Fremantle. 

 

Pilot Reported Arriving Containership’s Captain Appeared to be Intoxicated

Gran Canaria
Pilot at Gran Canaria reported that captain of an arriving ship appeared drunk (Puerto Canarias file photo)

Published Sep 1, 2024 2:12 PM by The Maritime Executive


 

The authorities in the Canary Islands responded after the pilot working an arriving containership reported that the captain of the vessel appeared to be intoxicated. Local media reports from Gran Canaria said the vessel was having difficulty carrying out a docking maneuver which was aggravated by the apparent erratic course of the ship as it was approaching the dock.

The pilot informed the Maritime Authority which in turn involved Guardia Civil for an investigation. The police boarded the containership Wec Frans Hals and administered a breathalyzer test. Guardia Civil told the news outlet La Provincia that the captain tested significantly above the legal limit. The report says he measured 1.13 mg/l versus the legal limit of .25 mg/l.

The maritime authority fined the captain €75,000 (approximately $83,000) and the report says he is under investigation by the shipping line. The captain who was only described as a Ukrainian citizen is facing dismissal by the shipping line.

Wec Frans Hals (11,200 dwt) is a small container vessel registered in Portugal and maintains a regular service between Gijon and Vigo in Spain and the Canary Islands. The vessel has a capacity of 862 TEU and 433 feet (132 meters) in length. 

The incident took place on August 20 when the vessel was approaching the La Luz terminal on Gran Canaria. The maritime authority held the vessel for two days in port until the shipping line could send a replacement captain to take command of the vessel.


 

Romania Proceeds with Negotiations to Purchase Moldova’s Commercial Port

Moldovia port
Romania is negotiating to buy Moldovia's international commercial port Giurgiulesti (PILG)

Published Sep 1, 2024 4:37 PM by The Maritime Executive

 

 

The Romanian government has approved a plan to buy neighboring Moldova’s Giurgiulesti port. It is part of a strategic plan to increase its influence across the region and play a critical role in Black Sea shipping and commerce after the war in Ukraine. Romania began talks to acquire the port last year.

After the cabinet approval, a spokesman for the Romanian government Mihai Constantin, said last week that a commission of negotiation has been set up. Romania plans to purchase Giurgiulesti port through its national company, Administration of Maritime Ports, which is owned by the Ministry of Transport. The process involves Romania acquiring the shares of the European Bank for Reconstruction and Development (EBRD) in Danube Logistics company, which is the operator of Giurgiulesti International Free Port.

Moldova through its government spokesperson Daniel Voda confirmed the discussions on the sale of Giurgiulesti port. Voda clarified that there are two port infrastructure entities in Giurgiulesti and that the talks are for the Giurgiulesti International Free Port (PILG), which is controlled by EBRD under a 99-year lease that began in 2021. The Giurgiulesti State Port, owned by Moldova, is not part of the negotiations.

Last year, Moldavian President Maia Sandu said that the port required investment noting that it had become strategically import since the start of the war in Ukraine. Voda noted that PILG had in the past attracted other potential investors from Turkey, the Netherlands, and Denmark.

In a memorandum approving the purchase of Giurgiulesti port, Romanian government said it was interested in the terminal taking into account the competition between the Constanta port and other ports in the Black Sea basin.

“By acquiring the port, Romania plans to consolidate the traffic of goods, and make the port of Constanta as one of Eastern Europe’s major transport hubs,” said Constantin.

Giurgiulesti is the only port in the landlocked Moldova, located in the southernmost point of the country. The port sits at the confluence of the Prut and the Danube Rivers, about 83 miles from the Black Sea. This strategic location means that it can be accessed by both river and sea-going vessels, and is equipped with a terminal for the storage and transshipment of refined oil products.

Giurgiulesti port has started playing a vital function in shipment of grain and fuel in and out of Ukraine after Russia started blockading Ukrainian ports along the Black Sea. There was a quadrilateral agreement between the ports of Reni in Ukraine, Giurgiulesti in Moldova, and Galati and Constanta in Romania. In an interview with local media last year, Romanian Prime Minister Marcel Ciolacu said that acquiring the river-to-sea port could also play a crucial role in the reconstruction of Ukraine after the war. 

 

Contingent Contract Signed for Reefing SS United States off Florida

ss United States
ss United States may end her 72 year life as a reef off Florida's panhandle (Allan Jordan photo)

Published Aug 31, 2024 5:45 PM by The Maritime Executive

 

 

Florida’s Okaloosa Country in the far western reaches of the state in the area known as the panhandle has signed a contingent contract to acquire and reef the famed ocean liner ss United States. The deal comes as the SS United States Conservancy which owns the vessel has struggled to find a new berth for the ship which is being evicted from its layup pier of nearly 30 years.

Responding to growing media reports, the Conservancy issued a statement late on Friday, August 30, confirming “we have entered into a contingent contract,” while warning that the proposal remains subject to “various contingencies.” The non-profit termed media coverage as “misleading stories,” saying the deal is not yet done and it would not comment until the country’s board has reviewed the proposal.

The Okaloosa Board of Country Commissioners is scheduled to meet on Tuesday, September 3, to review the proposal which local media reports said calls for a budget of up to $9 million for the project which would create the world’s largest artificial reef. The country is reportedly attracted to the deal as a means to spur tourism to the remote part of the state. Neighboring Escambia Country reefed USS Oriskany in 2006 and reports it attracts as many as 10,000 divers annually.

SS United States at 990 feet in length would be more than 100 feet long than Oriskany. Escambia was reported to be considering making a bid for ss United States as well but last week tabled the proposal. Among the concerns according to local media reports were the costs with the country commissioners seeking the support of the Tourist Development Department. The media coverage said they hoped to get $1 million from tourism and believed they had secured commitments for nearly $4 million of the estimated $8.6 million required for the project.

Okaloosa reportedly has agreed to pay $1 million to acquire ss United States and then would be responsible for towing the vessel to Florida’s Gulf Coast, additional remediation to meet environmental standards for reefing, and undertaking the reefing operation. The local news outlet Get the Coast reports the country believes it has $5 million in commitments toward the project. Raising the additional funding is one of the hurdles still to be overcome.

An environmental due diligence is underway with reports saying the initial results were favorable. The ship still has oil aboard as well as wiring and other contaminants. Other contingencies include securing an agreement from Penn Warehousing which owns the dock in Philadelphia and has been demanding the vessel depart so that the ship could stay past the court-ordered deadline for the removal of ss United States. The report says they anticipate closing on the acquisition of the liner by October 4.

Okaloosa is reported to have identified three possible locations for reefing the liner. It would be less than 25 miles from shore and the sites are said to offer depths and clearance, although speculation is that the liner’s icon funnels would be removed. Large parts of the interior would also have to be sealed because of the complex labyrinth of passageways which could trap even skilled divers. 

“We understand that many of you are deeply concerned about the fate of the ss United States,” the Conservancy wrote to its supporters while saying, “Reefing is not the Conservancy’s preferred scenario.” They said they were aiming for a “more dignified outcome,” while admitting time is running out to meet the court mandate and thus far, no viable alternatives have emerged for an alternate berth. 

“There are multiple discussions underway and many unresolved matters that make both the outcome and timing uncertain at this point,” the Conservancy said in its message on Friday. They said the group has been in discussions on a range of scenarios while saying reefing would be done in tandem with a land-based museum.

Okaloosa, which is also home to the Air Force Armament Museum, reportedly has committed $1 million to a museum. They would be responsible for acquiring and building or renovating a property to house the museum about what is called “America’s flagship.”

The Conservancy’s stated goal was repurposing the liner into a multi-use attraction. After acquiring the liner in 2011, they pursued many avenues including a proposal by Crystal Cruises to reactivate the ship. Referring to the lawsuit, the Conservancy wrote to supporters on Friday, “In the end, Penn Warehousing’s actions ended our ability to continue searching and advocating for a viable location for the project and we are unlikely to realize our shared dream.”

Conceived by one of America’s foremost naval architects, William Francis Gibbs, ss United States was built in the early 1950s as an Atlantic liner. On her maiden voyage in 1952, she shattered the Atlantic speed record and 72 years later remains the fastest passenger liner to have ever crossed the Atlantic. She operated for just 17 years before the end of U.S. government subsidies, a decision to fly U.S. military and government officials, and the growth of the commercial airlines ended the ship’s career. The U.S. Government ultimately took ownership and began seeking a buyer before selling the ship in 1980. Many plans were proposed, but none came to fruition. 

Unless a last-minute “white knight” appears with a berth, the Conservancy is faced with completing the reefing deal or selling the liner for scrap. The court plans a follow-up to review progress on determining a plan for the vessel to be towed from her pier maintaining a September 12 deadline for the plan.

 

Bahamas Formalized Agreement to Create Global Leader in Ship Repair

Grand Bahama Shipyard
Grand Bahama Shipyard is rebuilding its capacity and expanding after the 2019 failure of its largest dock (file photo)

Published Aug 30, 2024 4:18 PM by The Maritime Executive

 

 

The government of the Bahamas highlights that it signed a Heads of Agreement with the Grand Bahamas Shipyard to formalize the ongoing work to revitalize the repair facility and expand its capacity. The yard which is owned by Carnival Corporation, Royal Caribbean Group, and the Bahamas, is making a $665 million investment which Bahamian officials are highlighting will make it the global leader in ship repair both for cruise ships and commercial vessels.

During the signing of the formal agreements on August 29, Bahamas Prime Minister Philip Davis highlighted the project as part of economic growth for the country and specifically Grand Bahama Island. The island was badly damaged five years ago in a hurricane and then the shipyard lost critical capacity when its largest dry dock failed. In April 2019, Grand Bahama was executing a partial lift of one of the world’s largest cruise ships, Royal Caribbean’s Oasis of the Seas, to undertake urgent repairs when the dock cracked and one of the cranes toppled over hitting the cruise ship. The dock was not salvageable and sold.

Planning for the new capabilities began in 2019 but was delayed during the pandemic. Orders were finally placed in 2023 for two new dry docks that are being built at CSSC Qingdao Beihai Shipbuilding Company in Qingdao, China. One of the docks will have the largest lifting capacity in the world meaning that the shipyard will be able to service all the cruise ships in-service and planned as well as a broader range of vessels in the global commercial fleet.

The Prime Minister highlights the investment will provide an estimated 1,000 to 1,200 jobs on Grand Bahama with many going to Bahamians. They forecast the economic output of the yard once the new facilities are operational would reach $350 million annually.

The CEO of Grand Bahama Shipyard, Dave Skentelbery reported that work is underway on infrastructure upgrades at the shipyard. This will include a pier extension as well as increasing the depth at the docks. Skentelbery called the signing of the agreement another step forward for the shipyard and its expansion.

The first of the new dry docks is now scheduled to arrive in January 2026 and the second is expected in the third quarter of 2026. Both will be registered in the Bahamas with the larger one named Lucayan Dock and the second one East End Dock. 

The shipyard will become the largest cruise ship repair facility in the world. Presently, the largest cruise ships must travel to Europe for their scheduled overhauls and maintenance. Grand Bahama services cruise ships mostly during the shoulder season for the industry and in the remainder of the year its capacity is available to the commercial industry. The shipyard was also working to develop its operations to support more overhauls and refits of cruise ships which are also expected to resume after the cruise lines slowed investments to recover from the pandemic.

Grand Bahama Shipyard was conceived by the cruise industry to provide a nearby maintenance and repair facility close to its primary homeports in Florida. The current operation began in 2000 and has grown with the industry with the Bahamian government officials now saying it will become a world-class facility and locus for global ship repair. 

 

Hapag and Gasum Set Bio-LNG Supply Contract for Rotterdam-Singapore Route

Hapag-Lloyd containership
Hapag-Lloyd is taking delivery on its LNG-fueled ULCVs and will have a supply of bio-LNG to reduce emissions (Hapag-Lloyd)

Published Sep 2, 2024 7:58 PM by The Maritime Executive

 


A unique supply agreement has been set for the Nordic energy company Gasum to provide Hapag-Lloyd with bio-LNG to fuel containerships sailing between Singapore and Rotterdam in 2025 and 2026. The supply that will meet Hapag’s obligation under its contract with the cargo owners project, ZEMBA, is also seen as a key stepping stone toward the carrier’s goal to be net-zero carbon by 2045.

Bio-LNG is growing in favor among the shipping industry as an alternative that can reduce greenhouse gas emissions by up to 90 percent. Hapag will have one of the first large-scale supply contracts while Maersk also recently said it is also working on securing offtake agreements for liquified bio-methane (bio-LNG) as part of its fleet modernization program to ensure that its planned new dual-fuel gas vessels provide greenhouse gas emissions reductions in this decade. Bio-LNG is gaining due to the concerns for supply and cost of methanol as a marine fuel.

Hapag-Lloyd was announced in April 2024 as the winner of the first buyers’ agreement from ZEMBA (Zero Emission Maritime Buyers Alliance). The first-of-its-kind buyers alliance unites major shippers including Amazon, Patagonia, Bauhaus, New Balance, Nike, REI, and others which collectively agreed to purchase over one billion TEU miles on the route between Singapore and Rotterdam in 2025 and 2026. Hapag as the winner of the tender has agreed to provide an independently certified and exclusive waste-based biomethane service that can achieve at least a 90 percent reduction in greenhouse gases on a lifecycle basis relative to fossil fuel-powered shipping.

ZEMBA’s concept was by pooling demand they believe they can spur the fuel transition in shipping. Carriers bid for the contract assured of volumes and demand to help support the cost of the effort.

Gasum will bunker Hapag-Lloyd’s containerships with a total amount of 20,000 mt of bio-LNG during 2025-2026. The vessel will be operating on the Singapore-Rotterdam route effectively launching a long-distance green corridor. 

“This agreement demonstrates that the green transition in the maritime transport sector is picking up speed”, said Jacob Granqvist, VP of Maritime for Gasum. “We need all-hands-on-deck to drive the effort, and using bio-LNG to fuel maritime transports is an effective way to reduce emissions already today, rather than in a distant future.”

Gasum’s liquefied biomethane (bio-LNG) fuel is produced from waste feedstocks such as biowaste, sewage sludge, manure, and other industrial and agricultural side streams. On average, it will provide 90 percent lower emissions when compared with fossil fuel and the company highlights it can be used in all the same applications as natural gas, including as a road and maritime transport fuel and as energy for industry. The residual solids and liquids created in the biogas production process are also further processed and used as, for example, fertilizers in agriculture or raw material in industrial processes.

Gasum produces biogas in its own 17 biogas plants in Finland and Sweden and has supply contracts from other partners. The company says its goal is to offer seven TWh of renewable gas by 2027, including biomethane and e-methane. Achieving this goal would result in a combined CO2 reduction of 1.8 million tonnes per year.