Rise in SIPRI Top 100 arms sales revenue delayed by production challenges and backlogs

4 December 2023

Photo: Wikimedia

(Stockholm, 4 December 2023) Revenues from sales of arms and military services by the 100 largest companies in the industry totalled $597 billion in 2022, 3.5 per cent less than 2021 in real terms, even as demand rose sharply, according to new data released today by the Stockholm International Peace Research Institute (SIPRI), available at www.sipri.org.

Read this press release in Catalan (PDF), French (PDF), Spanish (PDF) or Swedish (PDF).

Click here to explore the interactive table of the SIPRI Top 100 ranking of arms producers and military services providers.

Click here to explore the SIPRI Top 100 interactive map.

Download the SIPRI Fact Sheet here.

The decrease was chiefly the result of falling arms revenues among major companies in the United States. Revenues increased substantially in Asia and Oceania and the Middle East. Outstanding orders and a surge in new contracts suggest that global arms revenues could rise significantly in the next few years.

Demand for weapons grows but production lags behind

Russia’s full-scale invasion of Ukraine and geopolitical tensions around the world fuelled a strong increase in demand for weapons and military equipment in 2022. However, despite receiving new orders, many US and European arms companies could not significantly ramp up production capacity because of labour shortages, soaring costs and supply chain disruptions that were exacerbated by the war in Ukraine. In addition, countries placed new orders late in the year and the time lag between orders and production meant that the surge in demand was not reflected in these companies’ 2022 revenues.

‘Many arms companies faced obstacles in adjusting to production for high-intensity warfare,’ said Dr Lucie Béraud-Sudreau, Director of SIPRI’s Military Expenditure and Arms Production Programme. ‘However, new contracts were signed, notably for ammunition, which could be expected to translate into higher revenue in 2023 and beyond.’

In contrast to the major US and European suppliers, companies in Asia and Oceania and the Middle East saw their arms revenues grow significantly in 2022, demonstrating their ability to respond to increased demand within a shorter time frame. This was especially true in countries where companies maintain responsive ‘ever-warm’ manufacturing capabilities, such as Israel and South Korea, and those where companies tend to rely on short supply chains.

Arms revenues fall in USA due to production challenges

The arms revenues of the 42 US companies in the Top 100 fell by 7.9 per cent to $302 billion in 2022. They accounted for 51 per cent of the total arms revenue of the Top 100. Of the 42 US companies, 32 recorded a fall in year-on-year arms revenue, most commonly citing ongoing supply chain issues and labour shortages stemming from the Covid-19 pandemic.

‘We are beginning to see an influx of new orders linked to the war in Ukraine and some major US companies, including Lockheed Martin and Raytheon Technologies, received new orders as a result,’ said Nan Tian, SIPRI Senior Researcher. ‘However, because of these companies’ existing order backlogs and difficulties in ramping up production capacity, the revenue from these orders will probably only be reflected in company accounts in two to three years’ time.’

Asia outperforms Europe on back of military modernization drives

The arms revenues of the 22 companies from Asia and Oceania listed in the ranking rose by 3.1 per cent to reach $134 billion in 2022. This was the second consecutive year where Top 100 arms revenues for Asia and Oceania were higher than those for Europe.

‘Domestic demand and reliance on local suppliers shielded Asian arms companies from supply chain disruptions in 2022,’ said Xiao Liang, a researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘Companies in China, India, Japan and Taiwan all benefited from sustained government investment in military modernization.’

The combined arms revenues of the four South Korean companies in the Top 100 fell by 0.9 per cent, primarily due to an 8.5 per cent drop recorded by the country’s biggest arms producer, Hanwha Aerospace. Two South Korean companies reported revenue growth, most notably LIG Nex1. South Korean companies are likely to see increased revenues in coming years due to a surge in booked orders after signing major arms deals with Poland and the United Arab Emirates.

Modest revenue growth in Europe as Ukraine-linked demand starts to filter through

The arms revenues of the 26 companies in the Top 100 based in Europe rose by 0.9 per cent to reach $121 billion in 2022.

‘The war in Ukraine created demand for materiel suited to a war of attrition, like ammunition and armoured vehicles. Many European producers of these items saw their revenues grow,’ said Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘They included companies based in Germany, Norway and Poland. For instance, Poland’s PGZ increased its arms revenue by 14 per cent, benefiting from the accelerated military modernization programme the country is pursuing.’

Trans-European companies Airbus and KNDS were among the main sources of arms revenue growth in Europe, largely due to deliveries against long-standing orders.

Turkish companies drive significant increase in Middle Eastern arms revenue  

The Middle East saw the largest percentage rise in arms revenue of any region in 2022, as all seven Middle East-based companies in the Top 100 recorded substantial growth. Their combined arms revenues of $17.9 billion marked an 11 per cent year-on-year increase. The four Turkish companies’ total arms revenues reached $5.5 billion—22 per cent more than in 2021. The aggregate arms revenues of the three Israeli companies in the ranking reached $12.4 billion in 2022, a 6.5 per cent increase compared with 2021.

‘Middle Eastern companies that specialize in less technologically sophisticated products were able to scale up production faster in response to surging demand,’ said Dr Diego Lopes da Silva, SIPRI Senior Researcher. ‘A case in point is Türkiye’s Baykar, producer of the Bayraktar TB-2 drone. Baykar entered the Top 100 for the first time after its arms revenue rose by 94 per cent, the fastest growth rate of any company in the ranking.’  

Other notable developments

• In 2022 China accounted for the second largest share of combined Top 100 arms revenues by country, at 18 per cent. The aggregate arms revenues of the eight Chinese arms companies in the ranking increased by 2.7 per cent to $108 billion.
• The arms revenues of the seven companies in the United Kingdom listed in the Top 100 grew by 2.6 per cent to reach $41.8 billion, or 7.0 per cent of the total.
• Due to a lack of data, only two Russian companies were included in the Top 100 for 2022. Their combined arms revenues fell by 12 per cent to $20.8 billion. Transparency among Russian companies continues to decline. Despite being a holding entity with no direct manufacturing capacity, Rostec is included in the 2022 ranking as a proxy for the companies it controls.
• The only Ukrainian company in the Top 100, UkrOboronProm, saw a 10 per cent real-terms drop in its arms revenue to $1.3 billion. Although its arms revenue increased in nominal terms, this was more than offset by the country’s high inflation.

 

About the SIPRI Arms Industry Database

The SIPRI Arms Industry Database was created in 1989. At that time, it excluded data for companies in China, the Soviet Union and countries in Eastern Europe. The current version contains data for 2002–22, including data for companies in Russia. Chinese companies are included from 2015 onwards.

‘Arms revenue’ refers to revenue generated from the sales of military goods and services to military customers domestically and abroad. Unless otherwise specified, all changes are expressed in real terms and all figures are given in constant 2022 US dollars. Comparisons between 2021 and 2022 are based on the list of companies in the ranking for 2022 (i.e. the annual comparison is between the same set of companies). Longer-term comparisons are based on the sets of companies listed in the respective year (i.e. the comparison is between a different set of companies).

The SIPRI Arms Industry Database, which presents a more detailed data set for the years 2002–22, is available on SIPRI’s website at <https://www.sipri.org/databases/armsindustry>.

This is the first of three major data launches in the lead-up to the release of SIPRI’s flagship publication in mid 2024, the annual SIPRI Yearbook. Ahead of this, SIPRI will release its international arms transfers data (details of all international transfers of major arms in 2023) as well as its world military expenditure data (comprehensive information on global, regional and national trends in military spending in 2023).

Related content

SIPRI Arms Industry Database

The SIPRI Top 100 Arms-producing and Military Services Companies, 2022

The SIPRI Top 100 arms-producing and military services companies in the world, 2022

Change in arms revenue of the SIPRI Top 100, by country, 2021–22

Public-Private Partnership Is Key to Building Defense Industrial Base and Workforce

Dec. 3, 2023 | By Joseph Clark , DOD News |


The U.S. defense industrial base and federal government must work together to shore up the defense industrial base and workforce of the future, the Pentagon's top acquisition official said yesterday.  



William A. LaPlante, undersecretary of defense for acquisition and sustainment, called for a whole-of-government approach and creative solutions by the private sector to draw the talent needed to ensure a capable, innovative industrial base with a talented resilient workforce. 

He highlighted the need for our nation and our global allies to produce critical systems and equipment rapidly and at scale. He also said recruiting a trained and skilled workforce to the defense industrial workforce requires public-private collaboration at all levels to build a robust talent pipeline. 

"This is at the state and local levels. This is at the high schools all the way up to the federal level," LaPlante said during a panel discussion at the Reagan National Defense Forum in Simi Valley, California. 

"I think we can do [an] even a better job at … making sure we're all talking to each other," he said.  



LaPlante and his fellow panel members took note of U.S. shipbuilders' investments in training opportunities for high schoolers to develop skills that will translate into well-paying jobs that will be in demand in the future.  

"I think the submarine industrial base has done a lot of really good work," he said. 

He added that the government and private sector can also work together to ensure that the work environment within defense manufacturing is attractive to future talent.  

"If you've been to some of these advanced manufacturing [facilities], it looks like they're at a startup," he said. "It's really cool. That actually matters. And, so, the government—all of us—can help...to invest in those areas." 



LaPlante also said the government and private sector can work together to lower barriers to entry for some professions that require highly skilled employees, but not necessarily a college degree. 

While he said that this may not be feasible for all positions, it can work in some. "You know, people without college degrees can do software sometimes a lot better than those of us that are overly educated beyond our intelligence," LaPlante said with a touch of humor. "You think about that; that goes against culture, right? But we've got to think of these [things] creatively like that," he said.  

The Defense Department is preparing to release a comprehensive National Defense Industrial Strategy—the first of its kind in DOD's history—that seeks to tie our nation's highly capable and innovative industrial and technology base to our current National Defense Strategy and meet the global challenges DOD confronts.

LA REVUE GAUCHE - Left Comment: Search results for PERMANENT ARMS ECONOMY 

 Russia takes control of Iraq’s biggest oil discovery for 20 years

Preliminary estimates suggested that Iraq’s Eridu oil field holds between 7-10 billion barrels of reserves.

NEWSROOM

DECEMBER 4, 2023

photo: Unsplash

Preliminary estimates suggested that Iraq’s Eridu oil field holds between 7-10 billion barrels of reserves. Senior Russian oil industry sources spoken to exclusively by OilPrice.com said the true figure may well be 50 percent more than the higher figure of that band. In either event, the Eridu field – part of Iraq’s Block 10 exploration and development region – is the biggest oil find in Iraq in the last 20 years, and Russia wants to control all of it, alongside its chief geopolitical ally, China.

The approval last week by Iraq’s Oil Ministry for Inpex – the major oil company of key U.S. ally Japan – to sell its 40 percent stake in the Block 10 region that contains the huge Eridu discovery leaves the way clear for Lukoil to take total control of the entire oil-rich area.

Block 10 lies in the southeast of Iraq, approximately 120 km west of the key oil export route from Basra, and just south of the huge oil fields in and around Nassirya.

Back in 2021 – at least before the U.S. formally withdrew from Iraq by ending its ‘combat mission’ there at the end of December – it was clear that Washington knew what Russia and China were up to long term in the country, and how the U.S. was being manipulated by Iraq. In a moment of insight, the then-U.S. Deputy Assistant Secretary of Defense, Dana Stroul, said: “It’s […] clear that certain countries and partners would want to hedge and test what more they might be able to get from the United States by testing the waters of deeper co-operation with the Chinese or the Russians, particularly in the security and military space.” This view could equally have been aimed, not just at Iraq, but also at most other countries in the Middle East at that time – most notably Saudi Arabia, and the UAE. That said, this profound insight had no effect on Washington at that point, and posed no impediment at all to either Russia or China’s continued drive to entirely push the U.S. out of the Middle East, as analysed in depth in in my new book on the new global oil market order.

Multiple field exploration and development deals, plus countless lower-profile ‘contract-only’ agreements, with Russian and Chinese firms allow the two countries plenty of scope to leverage these out into a harder geopolitical presence across the country, including into the very fabric of its key infrastructure.

These plans, in turn, link into corollary plans by Russia and China to turn the entire southeast region of Iraq – that culminates with the major oil export hub of Basra – into a region criss-crossed by Russian- and Chinese-controlled oil and gas fields and transportation hubs.

 Brazil gears up to become fourth largest oil producer

Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) reports that the country's oil production is steadily increasing.

NEWSROOM

DECEMBER 4, 2023

Image credit: Arvind Vallabh/Unsplash

Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) reports that the country’s oil production is steadily increasing, projecting the country to become the world’s fourth largest oil producer, informs OilPrice.

The country’s large reserves, particularly pre-salt reserves, coupled with a rise in exploration and drilling activities, underscore the potential for significant production expansion.

Despite concerns over government intervention and taxation, foreign energy companies like TotalEnergies and Equinor continue to invest heavily in Brazil, signalling the country’s strong position in the global oil industry.

Data from Brazil’s hydrocarbon regulator, the National Agency of Petroleum, Natural Gas and Biofuels (ANP – Portuguese initials), shows that for April 2023, the country pumped an average of 3.1 million barrels of oil per day. That number is almost 1% higher than a month earlier and 5% greater year over year. Total hydrocarbon output for April 2023 amounted to just over 4 million barrels of oil equivalent per day which was 1.1% higher month over month and 4.4% greater than a year earlier.

That growth indicates Brazil possesses the potential to become the world’s largest oil producer, especially when it is anticipated the country 2023 will add 300,000 barrels per day, taking production to 3.4 million barrels daily by the end of the year.

During 2022, Brazil was ranked ninth globally by oil production, ahead of Kuwait and behind Iran, lifting an average of just over 3 million barrels per day. Suppose Latin America’s largest economy is to become the world’s fourth-largest oil producer.

Another key aspect that will support those plans is Brazil’s copious hydrocarbon reserves. According to the ANP, at the end of 2022, Latin America’s largest oil producer held proven or 1P petroleum reserves totaling 14.9 billion barrels, of which 77% were categorized as pre-salt. There are also 21.9 billion barrels of proven and possible or 2P reserves and 27 billion barrels of 3P reserves, known as proven possible and probable reserves. This illustrates that Brazil possesses considerable hydrocarbon potential and the reserves required to support a significant increase in oil production. Those reserves will keep growing as exploration and development drilling gains momentum, with the Baker Hughes International Rig Count showing 17 active rigs at the end of May 2023 compared to 11 a year earlier.

In January 2023, French supermajor TotalEnergies approved the $1 billion final investment decision, or FID, for Lapa South-west offshore oil project in the Santo Basin, Brazil.

In early May 2023, Norwegian energy supermajor Equinor announced that it, along with partners Repsol Sinopec and Petrobras had approved the FID to proceed with the $9 billion development of the B-M-C-33 project in offshore Brazil.

Brazil remains an attractive jurisdiction for foreign energy companies despite President Lula’s hiking oil industry taxes and the growing risk of increased government intervention.

Bangladesh Faces Political Upheaval Ahead of January Polls

The political milieu in Bangladesh has been fraught with tension, climaxing in weeks of protests and violent clashes.

BYM A HOSSAIN
DECEMBER 4, 2023

photo: Unsplash


The political milieu in Bangladesh has been fraught with tension, climaxing in weeks of protests and violent clashes, casting a shadow of apprehension as the scheduled general election on January, 07, 2024, approaches. The Bangladesh Nationalist Party (BNP), reinvigorated as the main opposition force, has intensified its protests, fervently demanding the resignation of Prime Minister Sheikh Hasina. The crux of their discontent revolves around the insistence on establishing a neutral interim government before the general election, a demand staunchly rebuffed by the incumbent Awami League (AL)-led government. This singular point of contention has deepened the schism between the AL and the BNP, accentuated by the AL’s pursuit of a fourth consecutive term, further delineating a widening political chasm. Both major parties exhibit reluctance to engage in meaningful dialogue, casting doubt on the prospects for reconciliation before the impending elections.

In a noteworthy display of strength, the BNP and Jamaat-e-Islami orchestrated a “grand rally” on October, 28, advocating their “one-point demand” for a neutral interim election-time government. In response, the AL called for a “peace rally” on the same day. Regrettably, what began as a peaceful assembly devolved into violence, necessitating police intervention to regain control. BNP activists became embroiled in clashes with both police and AL supporters. The day-long street battle, despite initial police restraint, escalated into violence from the BNP rally. This tumult resulted in significant casualties, with BNP supporters attacking police, journalists, setting fire to a police hospital, and assaulting the Chief Justice’s residence of the Supreme Court.

While the BNP alleges that the violence was either deliberately provoked or part of government sabotage to discredit their protests. But, the undeniable fact remains—the damage and destruction cannot be credibly denied. In response, the government has initiated a crackdown on the BNP’s ranks and files. The move has applauded by the AL as a necessary response to the October atrocities.

Subsequently, the opposition has shifted its political tactics from public demonstrations to nationwide strikes and blockades. As of last week in November, at least 180 public transports were set ablaze. The BNP attempts to portray these incidents as sabotage orchestrated by government agencies or AL supporters. While the AL endeavors to exploit these blockades and strikes as part of their election campaign.

In my opinion, the BNP and its allies have unwittingly fallen into the Awami League’s political stratagem by fomenting violence on October, 28. It would be prudent for the BNP to sidestep this Machiavellian ploy orchestrated by the Awami League, thereby enhancing the visibility of their nonviolent campaign and conveying a resounding message to Western nations through heightened public engagement.

Washington’s Indo-Pacific Strategy (IPS) marks the inception of a US-led alliance strategically positioned to counterbalance China. Bangladesh and other South Asian nations find themselves at a crossroad amid this superpower rivalry. After the midpoint of President Biden’s tenure, the United States, the European Union, and predominantly Western governments have been exerting pressure on Bangladesh for enhancements in democratic processes, human rights, and freedom of expression. Notably, the opposition party BNP and its allies have embraced this initiative.

The Sheikh Hasina-led Awami League government has enjoyed unwavering support from India over the past decade. However, following the recent G20 summit in India, the United States has recalibrated its policy towards India, signaling a reluctance to cede full leadership to India in the South Asian context. The 2 + 2 dialogue in India has further revealed a divergence between India and the United States concerning their stance on Bangladesh. Conversely, China and Russia have been critical of the United States, branding its actions as unwarranted “interference” in Bangladesh’s internal affairs. The BNP has denounced Russia and China for their positions on Bangladesh.

Western nations have advocated for a dialogue to resolve Bangladesh’s political impasse. While the AL has occasionally agreed to dialogue, it closed this option after announcing the election schedule on November 7. Meanwhile, the BNP has remained relatively silent and less interested to sit with the AL.

The political turbulence unfolds against a backdrop of economic hardship, with a significant portion of the population grappling with the escalating cost of living, particularly the rise in food prices. The country’s foreign exchange reserves have halved, dropping from $42 billion to $21 billion by July 2023. Earlier this year, Bangladesh sought assistance from the IMF. Recent concerns expressed by the United States regarding labor law reform in Bangladesh suggest potential dire consequences for the country’s RMG sector in terms of exports and imports.

The BNP’s strategy aims to leverage Western sentiments and capitalize on public discontent regarding economic challenges. Their movement seeks to corner Hasina into either stepping down or resorting to violence, thereby instigating broader political strife. Hasina, within this limited context, faces two options: reinstate an election-time interim government or relinquish power to the military. While the military’s intervention may not immediately favor the BNP, it could eventually level the playing field. Conversely, the AL advocates upholding the constitutional process, gaining moral strength to counter adversities. They believe that lawful pressure can disrupt BNP’s leader Tarique Rahman’s command and control. If BNP’s chain of command falters, Rahman’s choices would narrow down to either returning to Dhaka for political survival and potential incarceration or accepting political disaster while remaining in exile.

Amid persistent unrest, the imperative to uphold the right to freedom of assembly and safeguard the well-being of peaceful protestors remains paramount but also a gargantuan task. In this broad and acrimonious political context, compromise is perceived as an existential political threat. The destiny of the nation, inhabited by 180 million people, is not subject to external pressures or internal power plays. True power lies with the common people, and they understand when and how to assert their authority.


M A Hossain, political and defence analyst based in Bangladesh.

Casino workers with MGM Grand Detroit ratify deal, ending 47-day strike

December 3, 2023

DETROIT (AP) — Casino workers for MGM Grand Detroit have voted to ratify a new contract, ending a 47-day strike.

MGM Grand Detroit workers are union members of the Detroit Casino Council, which represents nearly 4,000 employees of the city’s three casinos. Their approval Saturday on a five-year agreement comes weeks after unionized workers reached an agreement with other two casinos following a roughly one-month strike.

Workers at MGM Grand Detroit, Hollywood Casino at Greektown and MotorCity Casino walked off the job Oct. 17 over issues including health care and wages that had not kept up with the cost of living.

The new agreement, which covers about 1,700 employees, includes an average immediate 18% pay raise, workload reductions and no health care costs increases for employees, according to the council. The union workers include dealers, cleaning staff and valets.

“We sacrificed a lot during the pandemic, but we fought for and ultimately won a contract that secures our health care and provides significantly improved wages,” Gabriel Robert Hernandez, a valet at MGM Grand Detroit and Teamsters Local 1038 member, said in a Saturday statement.

MGM executives said the move means normal operations will resume.

“We’re excited to welcome our team back and continue providing our guests the entertainment experiences for which MGM Grand Detroit is known,” Matt Buckley, President and COO of Midwest Group, MGM Resorts International, said in a Saturday statement.

Researchers express concern over potential harm caused by metaverse

December 4, 2023

ANN/THE STAR – The advent of artificial intelligence platforms and the metaverse may elevate concerns about data privacy, surpassing traditional worries about social media app settings and phishing scams, a report from Queen’s University Belfast revealed.

The university’s researchers are now calling for investigations into the impact of the metaverse on society and how the companies behind these platforms operate in the wake of mounting research confirming the mental health harm of social media, .

“Privacy, data collection, especially of personal data and biometric data, and the harm online platforms can cause, are all issues of concern to the public,” the university’s team warned.

Proponents believe the metaverse will ultimately replace the current Internet with a 3D space accessed by headset, offering virtual concerts, meeting rooms and collective gaming.

Apple, Microsoft, Google and Meta are all investing heavily.

“The next generation of Internet technologies will be highly immersive, compelling and largely driven by AI,” said Research Director Jesus Martinez del Rincon of security intelligence at the Belfast university’s Centre for Secure Information Technologies.

However researchers said their focus groups showed many of the online harms experienced in current Internet and social media environments will transfer to the metaverse and proliferate there.

The metaverse remains at least a decade away due to the massive amount of data it would require, which in turn would entail a vast increase in Internet availability, bandwidth and speed – and matching investments in not only electricity-hungry data processing hubs but the power-generation needed to keep it all ticking over.

“And the blend of AI and the virtual 3D-style Internet worlds promised – if the metaverse ever gets going – will make it very difficult for us to discern between what is real and what is imaginary within these virtual worlds,” said del Rincon

Metaverse: Enhancing ESG Awareness Through Virtual Simulation in the Mining Industry


In today's digital era, technology has brought significant changes to various sectors, including the mining industry.

BY TUHU NUGRAHA
DECEMBER 3, 2023

photo:unsplash


In today’s digital era, technology has brought significant changes to various sectors, including the mining industry. One of the latest promising innovations is the use of the Metaverse, a shared virtual space created by combining virtually enhanced physical reality, augmented reality (AR), and the internet. The Metaverse has great potential in enhancing awareness and implementation of Environmental, Social, and Governance (ESG) practices in the mining industry, especially in developing countries.

ESG Challenges in the Mining Industry

The mining industry in developing countries faces more complex challenges due to several factors. First, regulations in the mining sector are often less stringent, caused by a lack of resources or expertise in formulating effective rules. This situation allows environmentally harmful mining practices to occur without adequate supervision. Secondly, weak law enforcement is also a serious problem. Although regulations may exist, there is often a failure in their implementation due to factors such as corruption, a lack of resources, and inadequate legal infrastructure. On the other hand, economic development priorities often dominate, with mining considered an important source of income.

As a result, governments may sacrifice environmental aspects for short-term economic gain. This often has adverse effects on local communities, including environmental pollution and habitat destruction, and increases social conflict. Furthermore, poor governance issues often arise, especially related to transparency and the lack of involvement of local communities in decision-making.

To address these challenges, improved regulation and law enforcement are needed, as well as a focus on sustainable development and environmental protection. The involvement of local communities in the decision-making process is also crucial for creating a more responsible and sustainable mining industry.

Metaverse as a Solution


The Metaverse, leveraging VR and AR technology, emerges as an innovative response to the Environmental, Social, and Governance (ESG) challenges faced by the mining industry. It enables the creation of realistic and interactive simulations of mining environments, offering mine workers and management a unique platform for comprehensive ESG training. This controlled and safe virtual environment is particularly advantageous for reducing physical injury risks and simulating a range of environmental and social scenarios. Such immersive training equips workers with the skills and knowledge to better handle real-world situations.

Reflecting the growing trend, various mining companies have started to integrate Metaverse technology into their ESG training programs. For example, Brazil’s mining giant Vale, in collaboration with Canada’s NORCAT, has developed a ‘blended learning program’ to train and educate mine workers. This program utilizes virtual and augmented reality to provide miners with an immersive upskilling experience. NORCAT’s offerings, extending beyond traditional in-person sessions to include online training, aim to bolster worker safety and productivity. The curriculum spans various industry-specific topics, from Hardrock mining to forestry and basic mills, and integrates simulation training for operating mining equipment, such as forklifts and utility vehicles, in a risk-free virtual environment. By harnessing AR and VR tools, the program innovates the delivery of equipment maintenance and operational training through virtual exercises, thereby enhancing the overall safety, efficiency, and productivity of mining operations.

Beyond worker training, the Metaverse opens avenues for educating and engaging local communities about mining activities. The VR/AR-powered simulations provide a comprehensive view of the mining process, from mineral extraction to processing, while also illustrating the environmental impact of these activities. These simulations, including demonstrations of land reclamation practices, not only offer a clear and tangible understanding of mining operations but also foster open dialogue and transparency between mining companies and local communities.

Furthermore, the Metaverse serves as a participatory platform, allowing local communities to engage directly in mining-related decision-making. This inclusive approach empowers communities to actively contribute to and influence mining plans and impact mitigation strategies. The use of the Metaverse in these various capacities underscores its potential as a transformative tool in the mining industry, particularly in addressing and overcoming ESG challenges.

Future Prospects and Limitations

The Metaverse, as a promising technology in the mining industry, faces several unique challenges in developing countries. One of the main challenges is the affordability of the technology required to access the Metaverse. Devices such as VR/AR headsets and high-specification computers are often unaffordable for many people in developing countries, creating a gap in access to this technology.

Additionally, inadequate internet infrastructure in many developing countries presents another barrier. A stable and fast internet connection is crucial for an effective Metaverse experience, but this is often hard to find in remote areas. Moreover, the low level of digital literacy among the population in developing countries is also a challenge. Using the Metaverse requires a basic understanding of digital technology, which may not be possessed by all layers of society.

Finally, the issues of maintenance and technical support for VR/AR devices, as well as dependence on foreign technology providers, are important considerations in developing countries. Adequate technical support may be hard to find, which could hinder the sustained use of this technology, and dependence on foreign providers could raise issues regarding data sovereignty and control over technology.

Despite these challenges, the prospects for the use of the Metaverse in the mining industry in developing countries remain positive. With technological advancements, decreasing costs of VR/AR devices, as well as improvements in internet infrastructure and digital literacy, the Metaverse is expected to become more accessible and effective in addressing ESG challenges in the future.

Conclusion

The Metaverse promises a revolution in how the mining industry addresses ESG issues. With its ability to provide interactive and realistic simulations, this technology paves the way for more effective ESG education and training. It is important for the mining industry to continue innovating and involving communities to achieve sustainable mining practices.


Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)

 

From ER Doc To Wild-Card Presidential Candidate: Taiwan’s Ko Wen-Je – Analysis

 December 4, 2023  

By RFA

By Hsia Hsiao-hwa

Just 10 years after trading his white coat for a place on the mayoral hustings, Taipei Mayor Ko Wen-je, who also heads the four-year-old Taiwan People’s Party, is looking increasingly like a potential challenger to Vice President Lai Ching-te in January’s presidential election.

A recent poll of voters by the Taiwanese Public Opinion Foundation showed Ko has an approval rating of 31.9% compared with 29.2% percent for the ruling Democratic Progressive Party’s Lai and 23.6% for nationalist Kuomintang candidate and New Taipei City mayor Hou Yu-ih.

Earlier polls had shown a healthy lead for Lai and running mate Hsiao Bi-khim, with Ko trailing in third place after plans for a joint Ko-Hou ticket foundered.

The foundation described Ko as “a terrible nightmare that the DPP must not ignore,” adding that Ko’s support is highest among well-heeled white-collar workers, but that he also has similar appeal to Lai among blue-collar voters.

Far from boosting the Lai campaign, the recent collapse of talks between Lai and Hou over a possible “blue-white” joint ticket actually appears to have damaged it, boosting Ko’s approval rating by 6.3 percentage points and leaving Lai’s half a percentage point lower, the foundation said.

With less than 50 days of campaigning left to go before the Jan. 13 election, the result suggests Ko is a wild card candidate who could sway the result in unpredictable ways, the poll of 755 people with a 3.57 percentage-point margin of error and a 95% confidence level found.

“This is likely to be the most unpredictable of all presidential elections so far,” the foundation said. “We won’t know who the winner is until it’s over.”

‘Pithy soundbites

Ko, a former emergency room doctor who gave up medicine for politics 10 years ago, has generally sought to position himself as an outsider capable of toppling the traditional parties.

He has become known for his salty epithets and pithy soundbites, appealing to a broad cross-section of the island’s 23 million population, particularly younger voters.

Yet his critics accuse him of dictatorial leanings, an emperor-complex, a too-relaxed attitude to the threat from China, and of flip-flopping on key elements of his political stance to please whoever happens to be listening at the time.

Ko has described the 1992 consensus between Beijing and the former Kuomintang government that sought to preserve Taiwan’s de facto independence while never challenging China’s territorial claim on the island as “basically getting down on their knees and surrendering.”

“Failure is the norm – success is the exception,” is another Ko-ism, as is his description of politics as “the search for a lost conscience.”

Organ transplant doctor

Ko, 64, who has claimed an IQ of 157, has a fondness for medical metaphors on the campaign trail, and once referred to an opponent as “less capable than an amoeba.” 

Born in Hsinchu, Ko began his working life as an emergency and intensive care physician at National Taiwan University Hospital, studying organ transplants in the United States before setting up a transplant team at his hospital, and significantly improving survival rates with his use of ECMO machines.

He quit medicine after an organ was mistakenly transplanted into a patient from an HIV-positive donor, announcing he would run for Taipei mayor in 2014, eventually winning the election with the second highest number of votes ever received.

According to veteran journalist Kang Jen-chun, Ko projects a professional, scientific and rational image, along with pragmatism and a sense of openness and transparency.

“A large proportion of Taiwanese are very eager to find something outside of the [traditional] blue and green [camps],” Kang said. “Voters want politicians to take more action – stuff that is closer to their lives.”

“Ko Wen-je’s seemingly nonsensical comments and jokey approach have gotten young people’s attention.”

Lawmaker Tsai Pi-ru, a nurse at Ko’s hospital who later became his chief of staff in the Taipei municipal government, said: “He doesn’t beat around the bush … and if he says something wrong, he apologizes – the only person in Taiwan politics who does that.”

“He apologizes, seeks to do better, and moves on,” she said, adding that Ko also has a reputation for straight-dealing, and for a formidable work ethic that sees him taking the bus to work at city hall, starting his day at 7.30 a.m., before hosting a lunch party every day at noon.

He also has a reputation for dismantling bottlenecks in the city’s infrastructure in record time, as well as making off-the-cuff, sometimes shocking comments to journalists as he goes about his day.

Kang said this gives him a distinct advantage over Lai and Hou when it comes to the electoral “dog-fights” in Taiwan’s media, although his sharp tongue and whimsical remarks can sometimes get him into trouble.

When taken to task in the past, Ko has referred to himself as “a mortal,” describing his life as “a one-way street with no regrets.”

Nonetheless, by the time he fought his next mayoral election in 2018, his approval rating had plummeted from to 40% after three years in office, and he only defeated his opponent Ting Shou-chung by a narrow margin of some 3,000 votes.

Bully and schemer?

His New People’s Party has been hemorrhaging political support, as his critics accuse him of being a bully and a schemer.

“His neutrality is a kind of nihilism that blows with the zeitgeist,” Ed Lin, lead singer of Taiwan rock band Leather Lattice, wrote of Ko in a June 2023 article titled “Three Beautiful Misunderstandings of Ko Wen-je.”

“He’s good at dodging controversy and bullying the weak,” Lin wrote. “The truth is that he is deeply rooted in patriarchal ideas and vote-counting schemes.”

He said Ko stands for a restoration of authoritarian rule “that undermines democracy.”

A former Taiwan People’s Party activist who asked to be identified only as A, had a similar view.

“The biggest issue is Ko’s dictatorial personality,” A said. “His idols include Mao Zedong and the Yongzheng Emperor [1722-35].”

“He often refers to himself with the royal ‘we’, as if he’s the emperor,” A said, adding that Ko favors divide and rule politics and “palace intrigue.”

Ko also gives favorable treatment to his family members within the party, A said, describing them as “nobles of the court,” while everyone else is expected to be “fans and believers.”

Fascination with Mao

Ko had admitted to a fascination with Mao, and has visited Communist Party sites on a trip to China to learn about party history. He has been photographed by the media gazing at a portrait of Chairman Mao as a young man.

Ko has also raised eyebrows with his parroting of Beijing’s claim that the people of Taiwan and China are “part of the same family,” which it uses to underscore its territorial claim on the island.

“His emergence is very bad for democracy in Taiwan,” A said. “It will set its development back for a long time.”

Yeh, the office worker, said he doesn’t trust Ko either.

“There’s no problem with his intelligence,” Yeh said. “But he lacks presidential gravitas, and his words don’t mean anything – a president should keep their word.”

“But I’m worried that he will be willing to trade it away in any future negotiations with [China],” he said.

Even as a doctor, Ko was no stranger to politics.

A staunch supporter of late former Democratic Progressive Party President Chen Shui-bian, he formed part of a committee that advocated for Chen’s release on medical parole as he served his prison sentence for corruption.

But he later changed his tune, claiming in 2017 that Chen’s illness “was feigned from the start,” as he campaigned for opposition Kuomintang voters in his campaign for re-election as Taipei mayor.

Ko’s grandfather died in the Feb. 28, 1947, massacre of Taiwanese civilians by Kuomintang troops, an event that – much like the 1989 Tiananmen massacre – still carries a huge political and emotional weight in contemporary Taiwanese politics.

But asked to clarify whether he blamed former supreme leader Chiang Kai-shek for the killings, Ko evaded the question, saying he had suffered as much “persecution” by the Democratic Progressive Party, which emerged from the dissident movement that was the legacy of Kuomintang repression.

The island’s pro-democracy movement – known as the Tangwai – started to fight elections against the ruling Kuomintang in the 1970s and 1980s, largely inspired by the 1947 bloodshed and subsequent “white terror” campaigns by the secret police.

Ko supported the 2014 student-led Sunflower Movement that campaigned against a trade deal providing for ever-closer ties with China, and has gone on record as likening the Kuomintang, who signed it, to “cockroaches.”

Yet he also sat down at the negotiating table with former Kuomintang President Ma Ying-jeou, who was accused of undermining the island’s current government on a recent trip to China, in a failed bid to form a “blue-white alliance” to fight the January elections

Taiwan's Ko Wen-je. Photo Credit: 台灣民眾黨, Wikimedia Commons

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