Grupo Mexico works to kick out illegal miners at Los Chancas project in Peru

Reuters | October 23, 2024 | 

Image courtesy of Grupo Mexico

Mining and transport conglomerate Grupo Mexico is working with authorities to wipe illegal mining at its Los Chancas project in Peru, the mining division’s finance chief told analysts in a call on Wednesday.


Leonardo Contreras also said that the company, controlled by billionaire German Larrea, would restart an environmental impact assessment of Los Chancas once all illegal miners had been kicked out of the site.

Grupo Mexico will then “initiate the hydrogeological and geological studies and conduct a diamond drilling campaign to gather additional information on the deposits’ characteristics,” Contreras added.

The firm had previously reported that dozens of illegal miners had invaded the project located in Peru’s southern Apurimac region.

It started legal action against them back in 2023 in order to continue the project’s development, estimated at a $2.6 billion investment.

(By Aida Pelaez-Fernandez; Editing by Stefanie Eschenbacher and Kylie Madry)

Read More: Grupo Mexico’s profit jump on copper prices, production

SASKATCHEWAN

IsoEnergy to deploy AI mineral exploration tech at Larocque East in Athabasca Basin

Staff Writer | October 23, 2024 |

The Larocque East project in Canada’s Athabasca Basin. Image from IsoEnergy.

Australian space exploration company Fleet Space Technologies announced on Wednesday plans to deploy its AI-powered mineral exploration technology, ExoSphere Discovery, in partnership with Canadian uranium developer IsoEnergy (TSXV: ISO) at its Larocque East project in the Athabasca Basin.


The Larocque East project is home to the world’s highest grade indicated uranium mineral resource, the Hurricane deposit, with 48.6 million lb. of uranium oxide (U₃O₈) at 34.4% U₃O₈, plus 2.7 million lb. of inferred resource at 2.2% U₃O₈.

After drilling targets identified in 2023 with the real-time 3D imaging, IsoEnergy confirmed an extension of a hydrothermal system on strike with the Hurricane deposit and alteration consistent with potential uranium mineralization.

The company conducted an expanded summer deployment of ExoSphere, which identified six new priority targets and, together with the four areas identified from 2023 work, became the focus of the summer 2024 drilling campaign.

Using the latest advances in AI for mineral exploration, IsoEnergy will build on these findings, pioneering the use of ExoSphere Discovery at the Larocque East project to predict new opportunity zones and optimise data-driven drill targeting at the project.

The Hurricane deposit is only 40 km away from the McLean Lake mill. With a diversified portfolio, IsoEnergy is positioned to be a near-term uranium producer, deploying scalable technologies to further ESG objectives and advance exploration in Canada’s premiere uranium producing region.

The company also holds more advanced projects, including past-producing uranium mines in the United States. Earlier this month, it said it would acquire Anfield Energy (TSXV: AEC) in a C$126.8 million ($91.6m), all-stock deal for its Shootaring Canyon conventional mill in Utah.

Pioneering AI exploration technology

Image from Fleet Space Technologies

Built on the end-to-end hardware foundation of Fleet Space’s smart satellite-enabled seismic sensors (Geodes) for global multi-physics data acquisition, ExoSphere’s real-time 3D ANT surveys have accelerated and enhanced data-driven targeting decisions across five continents.

For the end-to-end capabilities and sustainability benefits ExoSphere has unlocked for the global exploration industry, the tech company was recognized at the Banksia Foundation’s 35th National Sustainability Awards as winner of the Climate Technology Impact Award for 2024 and winner of the Innovation category of the 2024 Mining Technology Excellence Awards.

FOSSIL FOOL

Coal billionaire Tykac eyes growth in bet against ESG uptake

Bloomberg News | October 25, 2024 | 

Image: Pavel Tykac’s Facebook page

As most investors turn away from coal, Czech billionaire Pavel Tykac is doubling down on the dirty fuel — just not in his home country.


Tykac’s Sev.en Group has taken advantage of cheap valuations to buy up coal power stations and mines in the US, Australia and Vietnam, as well as gas-fired plants in the UK. After building his fortune in the Czech Republic, Tykac is using the expansion to shield his wealth from European Union efforts to lead the world in giving up fossil fuels.

It’s also a bet that delays and snags in the transition to renewable energy will keep coal in the mix for years to come, at least outside Europe.

Having amassed foreign assets worth an estimated €3 billion ($3.3 billion) in the past five years, Sev.en is preparing for more and bigger deals, according to Alan Svoboda, chief executive officer of the group’s international business.

“We have much more in the pipeline than in the past, and we’re hoping to grow even faster than we have so far,” he said in an interview at the Prague headquarters of Sev.en Global Investments AS. “We look at hundreds of opportunities every year and submit dozens of binding bids.”

The Vales Point power station outside Sydney is one such example. The Czech company bought the coal-fired facility, which has a license to operate until 2029, two years ago. Yet looming electricity shortages might prompt Australian authorities to extend its lifespan until 2033, according to Svoboda. If that were to happen, it could boost profits, even if it requires additional investment.

“The entire energy sector can’t change overnight, as some people hoped,” the CEO said. “The Australians have realized that it is not totally safe to force a speedy decommissioning of coal plants, and that it is better to let market forces determine when their operation will no longer make business sense.”

As institutional shareholders, lenders and insurers flee environmentally harmful industries in droves, it remains unclear whether the company’s push into coal will pay off. Revenue at Sev.en Global Investments, which now accounts for over 70% of Tykac’s empire, jumped 23% last year to €1.85 billion. Still, adjusted earnings before interest, taxes, depreciation and amortization fell 53% to €432 million as energy prices slid from the record levels notched in 2022.

Including his original Czech company, Sev.en Ceska Energie AS, Tykac now has about 6,000 employees worldwide and a net worth of around $3 billion, according to estimates from the Bloomberg Billionaires Index.

Tykac, who declined to personally comment for this article, started out in business after the Velvet Revolution in 1989, when then-Czechoslovakia ditched communism. His first company was a computer manufacturer, and he later began investing in other local businesses and banks.

After 2006, Tykac transitioned into coal mines and power and heating plants around the Czech Republic. His Pocerady station, near the country’s northern border with Germany, is one of the country’s biggest polluters and has been a frequent target of environmental activists since it went online in the 1970s. It accounts for almost 6% of the country’s entire electricity production.

Unlike many peers, Tykac is not trying to greenwash his image. Sev.en Global Investment’s website describes its business model as focused on risky, high-return projects. It quotes Tykac as saying that his investments are “crucial for our economies” even as others might avoid them for ethical reasons.

“Sufficiency of reliable, safe and affordable electricity,” it reads, “is one of the basic conditions for the existence of today’s civilization.”


Svoboda joined Sev.en in 2018 to take care of its overseas expansion. The 52-year-old former executive at Czech utility CEZ AS says the EU effort to phase out coal is posing “elevated regulatory risk” to companies such as Sev.en.

“We are largely losing interest in Europe, except for the UK,” Svoboda said. “We are drawn to America and Australia.”

While the focus remains on developed nations with stable political systems, Tykac’s empire is also expanding into communist-ruled Vietnam, where it has agreed to buy 70% of a coal plant from American and Chinese investors. The 1.2 gigawatt facility outside Hanoi comes with a supply contract that hedges the owner against swings in exchange rates and coal prices until 2055.

Sev.en is hoping that the investment could be followed by expansion into places like India, Indonesia and Malaysia, according to Svoboda. Many countries in the region aren’t planning to ditch coal anytime soon, and their governments are often willing to compensate foreign owners with long-term guarantees.

“We thought it was time to try something new,” said Svoboda. “We would like to replicate our investment in Vietnam in other places across South-East Asia.”

It does remain easier to secure funding for green projects, which is one reason why the group is also seeking to diversify into industries such as electricity storage and mining minerals, including those used in batteries. In Australia, it is about to start producing potassium-sulfate fertilizer made via an environmentally friendly process.

Over the past 18 months, Sev.en has opened offices in New York, London and Sydney in an effort to expand its global footprint. “We’ve been looking at bigger and bigger transactions,” said Svoboda, adding that the “sweet spot” for acquisitions is currently between €500 million and €1 billion.

Despite the rising appetite, Sev.en remains selective, according to Svoboda.

“Rather than having a broad portfolio of many smaller items,” he said, “our goal is to own a limited number of crown jewels that we go all-in on.”

(By Krystof Chamonikolas)

Sanctions delay to Russian zinc mine causes supply miscalculation

DON'T YOU HATE IT WHEN THAT HAPPENS

Reuters | October 25, 2024 | 

Furnace operators at Glencore’s Kazakhstan precious metals refinery. Image: VisMedia

Western sanctions on Russia’s zinc miner Ozernoye have left it struggling to replace equipment needed to ramp up output, three sources with knowledge of the matter said, meaning mined zinc supply forecasts for 2025 are likely to be too high.


Without Ozernoye’s substantial contribution to global mined zinc supply next year, a shortage of zinc concentrate – a raw material to make zinc metal, used to galvanize steel, is likely to persist. Concern over tight supplies is one of the drivers that has pushed zinc prices to a 20-month high.

Asked about the possible delay, Ozernoye told Reuters it plans next year to produce concentrate “in volume comparable to the previously announced targets”.

Ozernoye officially launched production in September, saying that it would reach full capacity of about 320,000 metric tons of zinc in concentrate in 2025.


That represents 2.5% of next year’s global mined zinc supply estimated at 12.86 million tons, industry group the International Lead & Zinc Study Group (ILZSG) said.

The ILZSG included the ramp-up of Ozernoye in its forecasts of robust growth of 8.9% in new mining zinc supply outside China in 2025.

The sources, who asked not to be named because they were not authorized to speak publicly, said Ozernoye had yet to produce any material as it could not find an adequate replacement for the components that process rocks into powder-form concentrate.

Those parts were damaged by a fire in November 2023.

Ozernoye did not give any production targets when approached by smelters and traders interested in buying their concentrates next year, the sources said.

The components Ozernoye needs were developed and are made by commodity trader Glencore’s subsidiary Glencore Technology. Glencore taps an Australian zinc-lead deposit with a similar mineral composition to that of Ozernoye.

Glencore can no longer sell the concentrator parts to Ozernoye, which the US government placed under sanctions shortly after the fire.

Glencore declined to comment. The Swiss trader-miner said only it would “fully comply with all sanctions applicable to our business activities”.


Ozernoye is working with local company TEM Partner to try to replicate Glencore’s system, one source said. Production may start in November, the same source said.

The company statement said its equipment was made in Russia by its “in-house design bureau”.

It said it expected to achieve “project capacity within a year from the start of commissioning,” without specifying when that was.

“The part of the flotation equipment, which has already been commissioned, is behaving stably and the first batches of zinc concentrates have been received,” it said.

The uncertainty over Ozernoye’s output adds to the impact of other disruption, including Century’s force majeure and a slower-than-expected ramp-up at Ivanhoe’s Kipushi project in Democratic Republic of Congo (DRC).

Reflecting the difficulty of sourcing concentrate, zinc treatment charges (TC), the fees a smelter earns for converting concentrate into refined metal and a gauge of concentrates’ availability, dropped to minus $40 a ton end of September, according to pricing agency SMM.

The lower TC pushed some zinc smelters into losses and they had to cut production.

(By Julian Luk; Editing by Pratima Desai and Barbara Lewis)

Mali accuses Barrick Gold of breaching agreement, miner denies claims

Reuters | October 24, 2024 | 

Loulo-Gounkoto complex in Mali. (Image by Barrick Gold).

Mali has accused Barrick Gold of failing to abide by commitments made in a recent agreement, charges the Canadian miner denied on Thursday, saying it did not accept any claims of wrongdoing.


Barrick, the world’s second-largest gold miner, announced on Sept. 30 it had agreed with the government to resolve disputes over the Loulo and Gounkoto gold mines, days after Malian authorities briefly detained four Malian staff working for the company.

But in a joint statement dated Oct. 23, Mali’s economy and mines ministries said Barrick had “not honoured the commitments to which it subscribed in the agreement.”

Without sharing further details, the ministries said the breaches included those relating to environmental and corporate social responsibility and foreign exchange rules.

They said there were “serious risks to the group’s continued operations in Mali, one of whose operating licenses expires at the beginning of 2026.”

“The Malian government has decided to draw all legal consequences arising from the actions taken by Barrick Gold,” they said.

In response, Barrick denied the allegations and said since Sept. 30 it had been actively engaged with the government to reach a settlement that would include an increase in the state’s share of economic benefits from the Loulo-Gounkoto complex.

“While Barrick does not accept any claims of wrongdoing, it has chosen to act in good faith as a long-standing partner of Mali,” it said in a statement, adding that the company had paid the government $85 million in early October in the context of ongoing negotiations.

Earlier this month, three sources told Reuters that Mali’s military government was seeking at least 300 billion CFA francs ($512 million) in outstanding taxes and dividends from Barrick.

Asked to comment at the time, a Barrick spokesperson said the company was still in the process of negotiation.

The demands on Barrick follow an audit of mining contracts last year and a subsequent push by the junta to renegotiate existing agreements with foreign mining firms aimed at channeling a greater share of revenues into state coffers through a new mining code.

(By Tiemoko Diallo, Sourasis Bose and Alessandra Prentice; Editing by Tasim Zahid and Sandra Maler)

China to offer Taliban tariff-free trade as it inches closer to isolated resource-rich regime

MAO SAID WOMEN HOLD UP HALF THE SKY

XI SAYS ME NO SEE UM

Reuters | October 25, 2024 |

Mining in Afghanistan. (Image courtesy of CENTAR Limited).

China will offer the Taliban tariff-free access to its vast construction, energy and consumer sectors, Beijing’s envoy to Afghanistan said on Thursday, as the ailing resource-rich but diplomatically-isolated regime looks to build up its markets.


Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021, but like all governments has refrained from formally recognizing the Islamic fundamentalist group’s rule amid international concern over its human rights record and those of women and girls.

But the impoverished country could offer a wealth of mineral resources to boost Beijing’s supply chain security although it risks becoming a haven for militant groups threatening China’s Xinjiang region and huge investments in neighbouring Pakistan.

Selling Afghanistan’s lithium, copper and iron deposits to feed China’s enormous battery and construction industries would help the Taliban prop up their economy, which the UN says has “basically collapsed”, and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100% tariff lines,” Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Thursday, above a photo of him meeting acting deputy prime minister Abdul Kabir.

Afghanistan exported $64 million worth of goods to China last year, according to Chinese customs data, close to 90% of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China last year, the data shows, but Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment last September.

“In the Horn of Africa, China’s Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan,” said Eric Orlander, co-founder of the China-Global South Project.

“I don’t buy the whole strategic minerals line that we hear in Washington about how China is eyeing Afghanistan’s vast lithium reserves,” Orlander added, citing the cost and security challenges involved in extracting them.

“(China’s) answer to everything is build a road, and from that economic development will lead to peace and harmony.”

Several Chinese companies operate in Afghanistan, including the Metallurgical Corp of China Ltd, which has held talks with the Taliban administration over plans for a potentially huge copper mine, and was highlighted in an August feature in Chinese state media on Chinese companies rebuilding Afghanistan.

Chinese President Xi Jinping at a Beijing summit for more than 50 African leaders in September announced that from Dec. 1 goods entering his country’s $19 trillion economy from “the least developed countries that have diplomatic relations with China” would not be subject to import duties, without giving details.

The policy was then repeated on Wednesday by vice commerce minister Tang Wenhong at a press conference in Beijing on the preparations for upcoming China’s annual flagship import expo.

Lin Jian, a Chinese foreign ministry spokesperson, confirmed on Friday the policy would apply to Afghanistan, adding it would promote mutually beneficial trade and economic cooperation.

The Afghanistan embassy in Beijing did not respond to a request for comment.

Last October, Afghanistan’s acting commerce minister told Reuters the Taliban wanted to formally join Xi’s flagship “Belt and Road” infrastructure initiative.

Kabul has also asked China to allow it to be a part of the China-Pakistan Economic Corridor, a $62 billion connectivity project connecting China’s resource-rich Xinjiang region to Pakistan’s Arabian Sea port of Gwadar.

(By Joe Cash and Mei Mei Chu; Editing by Raju Gopalakrishnan)

Read More: Taliban says it signed mining deals worth over $6.5 billion

BHP, Vale, and Samarco reach $30 billion Fundão dam settlement

Bruno Venditti | October 25, 2024 | 

The collapse of the Fundao tailings dam in 2015 killed 19 people and polluted hundreds of miles of rivers. (Image: Agência Brasil Fotografias).

BHP Group (ASX, NYSE: BHP), Vale (NYSE: VALE), and their joint venture Samarco reached a final settlement of R$170 billion ($29.93 billion) on Friday with Brazilian public authorities for reparations related to Samarco’s Fundão dam failure.


The agreement was signed in Brasília, with Brazilian President Luiz Inácio Lula da Silva in attendance.

In February, a federal judge ruled that the companies must pay up to 47.6 billion reais ($8.4 billion) in damages for the dam collapse, though the decision is still subject to appeal.

The Fundão dam burst on November 5, 2015. Approximately 40 million cubic meters of mining waste destroyed communities and livelihoods, contaminated the Rio Doce and its tributaries, and reached the Atlantic Ocean. In total, 49 municipalities were affected, either directly or indirectly, and 19 people lost their lives.

According to BHP, the agreement builds on the existing remediation and compensation efforts by the Renova Foundation in Brazil, which have thus far totaled R$38 billion ($7.9 billion).

In addition to the $7.9 billion already spent by Renova, the agreement includes R$100 billion ($18 billion) in installments over 20 years to public authorities, municipalities, Indigenous peoples, and traditional communities. Additional performance obligations for Samarco, estimated at R$32 billion ($5.8 billion), are also included.
Payments to be completed over 15 years

The compensation covers programs for universal water sanitation, health initiatives, economic recovery, infrastructure improvements, and investment funds in education, culture, sports, and food security.

The agreement also includes compensation payments of R$95,000 ($17,000) per person for eligible fishermen and farmers in the affected areas.

“BHP Brasil’s expected outflows under the agreement align with BHP’s FY2024 Samarco dam failure provision of $6.5 billion, and no update is required to the existing provision at this time,” BHP stated.

“The Samarco Fundão dam failure was a terrible tragedy. It should never have happened and must never be forgotten,” said BHP CEO Mike Henry.

Payments are expected to be completed over approximately 15 years, with the first installment of R$5 billion ($880 million) due within 30 days. The agreement remains subject to approval by the Brazilian Supreme Court.

BHP still faces a potential $47 billion payout in damages in a lawsuit in London’s High Court. The settlement in Brazil will not impact the UK case.

The plaintiffs include over 600,000 Brazilian citizens, 46 municipalities, and 2,000 businesses, all challenging BHP’s role in the disaster.

In July, BHP and Vale agreed to equally share the cost of any damages resulting from the UK proceedings.

Shares of BHP rose 0.7% by 12:00 p.m. EDT. Vale stocks were up 3.4%.

Brazil to sign compensation deal with miners over 2015 dam disaster on Friday

Reuters | October 23, 2024 |

Image: Luiz Inacio Lula da Silva’s official X page

Brazilian authorities will sign on Friday a long-awaited reparation deal with miners Vale, BHP and Samarco over the 2015 Mariana dam collapse, the country’s presidential office said on Wednesday.


The agreement will be signed in a ceremony attended by President Luiz Inacio Lula da Silva at 9 a.m. local time (1200 GMT) on Oct. 25, Lula’s office said.

Vale, BHP and Samarco said last week that the deal was expected to include a total compensation of 170 billion reais ($29.9 billion), with 100 billion reais of that to be paid through 20 years directly to public authorities.

The collapse of the dam at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, unleashed a wave of tailings in a disaster that killed 19 people, left hundreds homeless, flooded forests and polluted a major river.

The three mining firms have for years been negotiating a compensation agreement with Brazilian authorities, hoping a deal would end several court actions on the matter.

(By Lisandra Paraguassu; Editing by Chris Reese and Marguerita Choy)

Myanmar rebels take the road to Mandalay
AFP
October 25, 2024

Myanmar's second-largest city Mandalay is a prime target of fighters who oppose the ruling junta - Copyright AFP STR

Winding through the lawless, rugged hills of northern Myanmar, National Highway 3 links a stunning series of victories by ethnic rebels and pro-democracy fighters in their war against the junta.

An offensive launched a year ago Sunday has seen opponents of the military seize much of the 480-kilometre-long (300-mile) route that connects second city Mandalay to China, Myanmar’s biggest trade partner.

Control of the road denies the junta lucrative taxes, threatens its bases in the central plains, and is a huge morale booster for its opponents as the civil war grinds through its fourth year.

AFP images from National Highway 3 show the destruction wrought by the previous year’s fighting and rebel groups trying to administer their newly seized territory.

The route begins at Muse, a town of ill-repute pressed up against the border with China.

Each morning, hundreds of locals queued for day passes to cross into China to buy medicine and consumer goods that can be re-sold back in Myanmar.

More than $2 billion worth of trade passed through Muse in the 2023-2024 financial year, according to the junta’s commerce ministry. Analysts say much more goes through off the books.

But following the rebels’ spectacular advance, venturing into the hinterland from Muse requires some savvy — and cash — said Aung Gyi, a driver.

“We’re OK if we can negotiate when we meet with ethnic rebel soldiers on roads and they ask for money,” he said, asking to use a pseudonym.

Around an hour from Muse was a checkpoint manned by soldiers from the Ta’ang National Liberation Army (TNLA), one of the rebel groups behind last year’s offensive.



– ‘Fighting up and close’ –



Around 30 kilometres further on is the town of Kutkai, infamous for the production of methamphetamine and normally home to around 50,000 people.

The fighting that has pushed the military out has scattered many of its residents and scarred the town.

Rubble littered across an open patch of ground was all that remained of the main market, flattened by a military airstrike.

Nearby, vendors had set up makeshift bamboo stalls to sell medicine and clothes.

“In northern Shan, the sound of gunfire is not very strange for us,” said resident Soe Naung, asking to use a pseudonym.

“But when we saw the fighting up close in our town, we were very afraid. We witnessed it with our own eyes.

“We can only hope our city will revive if the national highway opens again. Now our daily lives are full of fear about air strikes.”

In Kutkai, highway traffic consisted mostly of motorbikes laden with goods wrapped in tarpaulins.

Two young police officers in ethnic rebel uniforms sat on plastic chairs by the roadside and watched the traffic go by.



– Burma Road –



Roughly halfway along the highway, the city of Lashio embodies the biggest defeat the junta has suffered since it seized power in 2021.

Its four-lane toll gate was riddled with bullet holes and several panels were hanging loose, remnants of fierce fighting for the city where around 150,000 people lived before the offensive.

Lashio was famous as the terminus of the “Burma Road” built by the British usng local labour to supply Chinese forces battling Japanese invaders during the Second World War.

Now it is the prize of the Myanmar National Democratic Alliance Army (MNDAA), an ethnic Chinese rebel group, whose red and blue flags flutter over its pockmarked buildings.

A spiked black gate bears the name of a military engineering unit that was chased from the city.

On another street, two men were fixing electricity pylons.

The MNDAA is working to install a civilian administration it hopes will tempt residents to return to the city.

The military is trying to keep people away, and on Wednesday launched its latest airstrike on Lashio, according to local media and a rescue group.


– Hill station –


Near the end of National Highway 3, the former British hill station of Pyin Oo Lwin is still in the hands of the military.

The road passes grand houses of teak and brick and the military’s elite officer training academy.

“We also hear shooting sounds here sometimes,” said one female vendor at the town’s bustling market.

A two-hour drive down into the dusty plains places you in the former royal capital of Mandalay and the end of the highway.

Targeting the city of 1.5 million is the “Mandalay People’s Defence Force,” which fought alongside the ethnic rebels in the Shan hills during the past year.

In August, the “Mandalay PDF” hailed the bonds its fighters now shared with Shan state, forged in battle against the military along “National Highway 3.”

“Now, the dream of a day trip for Shan noodles is coming true,” it said in a statement, referencing a popular local dish from the region.


 

Rebels take control of Myanmar rare earth mining hub

Staff Writer | October 23, 2024 |

The military seized control on February 1, 2021 following a general election that saw Ms Suu Kyi’s National League for Democracy (NLD) party win by a landslide. (Image courtesy of OneNews | Wikimedia Commons)

The Kachin Independence Army (KIA), which has been fighting Myanmar’s military junta in power since 2021 on Wednesday said it had taken control of the country’s rare earth mining region.


Rare earth mining in Myanmar is concentrated in Kachin state around the towns of Panwa and Chipwe, adjacent to southwestern China’s Yunnan province. The region also hosts a number of gem mining sites and is a key trade route into Myitkyina (Kachin state’s capital) and north into China.

A KIA spokesperson told Reuters on Tuesday the group wrested control of the area from the militia group NDA-K over the weekend but did not elaborate on its plans on mining in the region. The NDA-K is allied with the ruling junta and has been working with Chinese companies involved in mining.

In a note on Tuesday, Adamas Intelligence, a Toronto-based rare earth and battery metals research consultancy, said rebel control of these mining sites could potentially disrupt rare earth concentrate shipments into China, which have declined for four months straight owing to the monsoon season and other challenges.


In June, a landslide at a rare earth mining site in Ngilot village in Panwa region claimed 10 lives and left at least 30 people missing.

Adamas says with Myanmar responsible for 57% of global dysprosium and terbium mine supply last year, a prolonged disruption would strain availability of feedstock supplies for magnet makers during what is typically a seasonally strong quarter.

More than 90% of electric vehicles feature at least one permanent magnet motor and rising production from Myanmar and low prices have made it easy for automakers “to turn a blind eye to the environmental destruction and social upheaval that rare earth mining fuels in the country,” according to Adamas.

“Should the recent border seizure and expected capture of rare earth mines this week result in a disruption of rare earth concentrate flows to China from Myanmar, importers of Chinese rare earths and magnets may soon have to pay, literally and figuratively, for failing to support and secure alternative sources of supply in time.”

 

The Maritime Executive's Global Salvage Edition is Out Now, Read Online

Salvage moved to the forefront during the massive operation to clear Baltimore harbor (USCG photo)

Published Oct 25, 2024 9:37 AM by Tony Munoz

 

(Article originally published in Sept/Oct 2024 edition

 

Salvors live a dangerous life. While they're a unique breed, their deployment means danger made worse by twisted steel, pollution, and an unstable marine environment. A famous salvor once told me he always carries a rosary with him and prays often while on a job.

Case in point: the MV Dali allision and collapse of the Francis Scott Key Bridge in Baltimore, the focus of our annual Global Salvage Review article, "Specialization of Skills," written by Pat Zeitler. Pat is a certified commercial diver and knows whereof he speaks, so you won't want to miss this one.

Unions are much in the news these days, so we were delighted to sit down with M.E.B.A. President Adam Vokac for this edition's Executive Interview and Case Study. Vokac and his team are part of a new and forward-looking generation of leaders with a fresh vision and lots of energy. They're determined to stem the decline in seafarer numbers and make a maritime career more attractive and rewarding to new recruits. It's a big challenge, but they're more than up to it and have already made a name for themselves.

Our regular columnists are up to their usual tricks, offering a lively combination of wit and wisdom. Erik Kravets questions whether the E.U. is building too many LNG regasification terminals in View from the E.U. Allaen Brooks asks, “What are oil prices telling us?” in his Eye on Energy column, and Senior Editor Jack O'Connell says it's "High Tide" for the workboat industry in Upgrades & Downgrades. What more could you ask?

Jack also penned this edition's Executive Achievement, which features Jimmy Griffin and Dan McAlpin, co-owners of Cartagena, Columbia-based STIVIK Shipyard. It’s not the usual Q&A format but rather a "maritime adventure" as narrated by Grifin. Fascinating, really, and quite an adventure.

Our Ship Fuels series focuses on hydrogen this time, and master mariner Chad Fuhrmann does a fine job presenting the pros and cons of this much-hyped clean fuel. Tech guru and futurist Sean Holt delves into the secrets of cybersecurity in his brilliant “Ghosts in the Machine," and Sean Hogle goes all the way back to Greek mathematician Archimedes of Syracuse to unravel the mysteries of cranes and deck machinery in "Mechanical Advantage." A witty, and instructive, tour de force. Enjoy!

Not to be outdone, ports columnist Tom Peters says, "You can observe a lot by watching," quoting Yogi Berra. Tom's been watching the container trade lately, and he describes how ports and supply chains are adapting to the growing number of geopolitical challenges in his well-crafted article, "Shifting Cargoes." Don't miss it!

So that's it for now. Sit back and enjoy, and let us know what you think. The annual International Workboat Show is just around the corner in New Orleans, one of our favorite cities, and we're looking forward to it. See you there! - MarEx
 

Tony Munoz is the Publisher and Editor-in-Chief of The Maritime Executive

To read the latest edition of the magazine, go to The Maritime Executive September/October 2024 Global Salvage Review.  To subscribe to the magazine, please go to https://www.maritime-executive.com/subscribe.

 

 

BV: Wind Propulsion Has Come of Age, But Needs Better Regulatory Clarity

Courtesy BV

Published Oct 24, 2024 7:08 PM by The Maritime Executive

 

 

After working on multiple wind-propulsion projects for innovative shipowners, class society BV has carried out a new study on wind technology, and it found that the industry needs more regulatory clarity and support in order to move forward with sail power.

BV notes that the IMO has no specific regulations or guidelines on the use of wind propulsion systems, and the installation and operation of wind propulsion systems are still subject to the same rules for engine-powered vessels. This leaves operators with a lack of clarity when it comes to the options for wind-driven carbon savings - and without clarity, they cannot bank on how an investment in wind propulsion would save them money on compliance. 

"The inclusion of wind propulsion in FuelEU Maritime is an important step in recognizing wind propulsion technologies as a form of propulsion. However, without international regulation, there is little incentive for industry actors to invest in wind propulsion technology. Collaboration between industry players and regulatory bodies is crucial for the advancement of this technology," said BV technology leader for sustainable shipping Aude Leblanc.

One of the principal challenges is in safety regulation. First, SOLAS does not apply to ships that are not propelled by a mechanism, so the definition of a sailing vessel for SOLAS purposes is unclear. Stability requirements and windage calculations are not defined specifically for sail power, and vessels with sails may need counter ballast and a modified vertical center of gravity to account for heel. Sail systems also introduce large blind spots, radar interference zones, and obstruction of navigation lights in traditional locations. Sail-equipped ships also have different maneuvering characteristics, especially in high winds. At present, all of these elements have the be accounted for on an ad-hoc basis with a waiver from the flag state (or other mitigation measures).  

Wind propulsion can contribute to improvements in EEDI / EEXI scores, according to BV. Owners with sails on deck and other optimization investments can subtract the carbon savings from their main engine emissions for calculation purposes for compliance. The process estimates the wind propulsion system's performance based on 50% optimal conditions, assuming that the vessel will not be navigating in perfect wind conditions all the time. Further verification is conducted during sea trials to validate the claimed performance benefits (though this is not required by IMO explicitly). Best results are obtained by picking the right sail for the right application, and optimizing the entire vessel for wind propulsion. 

"Today, the maritime industry has access to a vast array of wind propulsion systems that offer great diversity in terms of technology,
size range and innovative design solutions," noted BV. "From tiltable, retractable and foldable systems to containerized solutions,
the variety of options available provides flexibility to select the most suitable and efficient system for specific ship needs."