NUKE NEWS

Russia, Venezuela discuss cooperation on peaceful use of nuclear

21 February 2024

Russian Foreign Minister Sergei Lavrov said after talks with Venezuelan counterpart Yván Gil that they had discussed expanding bilateral cooperation in a range of areas including energy, medicine, space exploration and agriculture.

Lavrov, third from right seated, held the talks in Caracas (Image: X/@yvangil)

Lavrov said: "The peaceful use of nuclear energy, which we also discussed, is also promising."

According to a Russian Foreign Ministry transcript of the press conference, Lavrov then added: "We agreed to increase the pace and volume of cooperation in all these areas. We have a common opinion that this work helps to increase the sustainability of our national economies and strengthen the technological sovereignty of Russia and Venezuela. We are ready to share the experience we have accumulated over recent years with our Venezuelan friends."

Gil, in a post on social media platform X, said it was a successful meeting: "We have agreed to further strengthen bilateral relations between our countries, establishing new mechanisms and avenues for cooperation, especially in the tourism, cultural and economic fields."

According the Venezuelan Presidential press service: "Venezuela and Russia are advancing efficiently in the economic-commercial, scientific-technical and humanitarian-cultural areas, prioritising joint projects in energy, infrastructure, agriculture, medicine, education and culture."

Venezuela and Russia have discussed nuclear energy cooperation in the past, with a civil nuclear cooperation agreement signed in October 2010 providing for the construction of two 1200 MWe reactors and a research reactor to produce radioisotopes. Although it appears that the power plant plan was shelved the following year, cooperation in nuclear education continued for Venezuelan students at Russian universities.

Feasibility for AP1000s at Borssele to be studied

21 February 2024

Westinghouse Electric Company has been awarded a contract by the Dutch government to conduct a technical feasibility study (TFS) on the deployment of two AP1000 reactors at the Borssele nuclear power plant site. It comes as the Ministry of Economic Affairs and Climate launches a consultation on the siting of the reactors.

Michel Heijdra of the Dutch Ministry of Economic Affairs and Climate (left), with Westinghouse's Elias Gedeon (right) (Image: Westinghouse)

Following the award of a contract in December last year to Korea Hydro & Nuclear Power (KHNP) to conduct a feasibility study into the construction of two Korean-supplied reactors at Borssele, Westinghouse will now evaluate the construction of AP1000 units there. The Dutch government has previously said it also intends to award a third such contract to EDF of France. KHNP was due begin its feasibility study in January and it is expected to last at least six months.

The contract with Westinghouse was signed by Michel Heijdra, Director-General for Climate and Energy at the Dutch Ministry of Economic Affairs and Climate, and Elias Gedeon, Westinghouse Senior Vice President of Energy Systems Commercial Operations.

"The TFS represents a significant step forward in the country's ambitious strategy to achieve carbon neutrality by 2050, aligning with the European Union's climate goals and the Dutch commitment to carbon-neutral electricity production by 2035," Westinghouse said.

"We are honoured to begin work with the Dutch government on this preliminary yet crucial phase to deliver the world's most advanced, Generation III+ reactor technology," said Westinghouse Energy Systems President David Durham. "With our industry-leading, globally-deployed AP1000 technology, Westinghouse is proud to support the Dutch government and offer reliable, affordable, carbon-free electricity and economic benefits to the Netherlands for decades to come."

In December 2021, the Netherlands' new coalition government placed nuclear power at the heart of its climate and energy policy. Based on preliminary plans, two new reactors will be completed around 2035 and each will have a capacity of 1000-1650 MWe. The two reactors would provide 9-13% of the Netherlands' electricity production in 2035. The cabinet announced in December 2022 that it currently sees Borssele as the most suitable location for the construction of the new reactors.

Intention and proposal for participation

The Dutch Ministry of Economic Affairs and Climate has also announced that its 'proposal for participation' in the construction of the two new reactors will open on 23 February. Interested parties will have until 4 April to contribute ideas about the research for the construction of the reactors.

"This is the first step of the project procedure to arrive at a final choice of location," the ministry said.

"Companies, social organisations, local authorities and anyone who wants to do so can contribute ideas about the locations to be investigated and environmental effects for the construction of two new nuclear power stations," it said. "If the ideas meet the preconditions described in the intention, the ministry will investigate whether these locations are potentially suitable in the next step of the project procedure. In any case, the existing 'guarantee locations' are being investigated. These are Borssele/Vlissingen (the Sloe area), and Maasvlakte I (the port of Rotterdam)."

The ministry will also soon publish its 'intention' for the new reactors, in which it describes how it will involve interested parties and local residents in the project procedure in the future. Interested parties can indicate in which ways they would like to be involved in the next steps.

"The 'intention and proposal for participation' is a formal part of the project procedure for projects of national importance," the ministry said. "Based on a careful procedure, the cabinet will make a final decision on the location in 2025. The project procedure is one of the four work tracks required to make a final decision and start the tender. The first technical feasibility studies, market consultation and first steps for the National-Regional Package were started earlier."

Hyundai E&C shortlisted to build new Kozloduy units

19 February 2024

South Korea's Hyundai Engineering & Construction is the only one of the five candidates deemed to have met the requirements for the construction and commissioning of two new Westinghouse AP1000 units at Bulgaria's Kozloduy nuclear power plant.

The existing Kozloduy site (Image: GEN)

The project company Kozloduy NPP - New Builds Plc, had issued a call for expressions of interest in participating in the procedure for determining a shortlist of potential construction companies for engineering, construction, delivery and commissioning of a nuclear power plant​, by 2 February. It says the candidates expressing an interest were Fluor BV, Bechtel Nuclear Power Company Limited, Hyundai Engineering & Construction, a consortium led by China National Nuclear Corporation Overseas and partner China Energy Engineering Group Tianjin Electric Power Construction Co, as well as China Energy Engineering Corporation Limited.

The initial part of the selection process was to check that those expressing an interest met the qualifying criteria. These include demonstrating construction experience and the commissioning of at least two nuclear units as well as "to have solid experience in the nuclear and turbine island of at least two units or have supplied and installed equipment for two units within the last 15 years - applicants must also demonstrate at least USD6 billion in turnover and profit for the five years period from 2018 to 2022". Candidates from the Russian Federation were specifically excluded.

Kozloduy NPP - New Builds said that, after a commission carried out the pre-qualifying review, "the commission proposed for a shortlist of potential construction companies for engineering, construction, procurement and commissioning of a nuclear power plant at the approved site in Kozloduy with AP1000 technology, on the 'pass/fail' principle: Hyundai Engineering & Construction Co". It added that the commission's report had been accepted and approved by the project company.

Hyundai E&C looks set now to go forward to submit an offer in the next stage of the process.

Bulgaria is aiming to have two new Westinghouse AP1000 units at the Kozloduy nuclear power plant. Deputy Energy Minister Nikolay Nikolov told Bulgaria's official BTA news agency in December that the aim was to achieve a price of about EUR6 billion (USD6.5 billion) for each of the units.

Kozloduy units 1-4 were VVER-440 models which the European Commission had classified as non-upgradeable and Bulgaria agreed to close them during negotiations to join the European Union in 2007. Units 5 and 6 feature VVER-1000 reactors that were connected to the grid in 1987 and 1991, respectively. Both units have been through refurbishment and life extension programmes to enable extension of operation from 30 to 60 years.

When the decision to move ahead with AP1000 units at Kozloduy was given approval by the country's council of ministers in October, the target date for the completion of the first unit was 2033, with the second unit to follow "two or three years after the first one". The 2300 MWe capacity of the two new units would exceed the 1760 MWe capacity of the closed first four units. The Bulgarian government has also said that further units will be needed to replace units 5 and 6 by 2050.

Westinghouse will hold overall Design Authority responsibility for the AP1000 plant, the expression of interest document said, adding: "The responsibilities for the design of individual AP1000 plant systems and buildings shall be delegated by Westinghouse. The responsibility for the design of Modules, Constructions Assemblies and Platforms is aligned with the party that is responsible for the design of the building in which the item is located."

Onagawa 2 restart expected in September

20 February 2024

Tohoku Electric Power Company now expects to reconnect unit 2 of its Onagawa nuclear power plant in Japan's northeastern Miyagi Prefecture to the grid in September. In January, the utility said additional safety construction works had delayed the previously planned restart in May.

Tokohu's Onagawa plant (Image: Kurihalant Co Ltd)

Tohoku said in January that work to fireproof electric cables at the unit was taking longer than planned and it anticipated a delay of several months regarding the completion date of the safety measures.

"As a result of the completion of a thorough investigation including securing the necessary materials and equipment and workers for the construction work, as well as workability on site, the completion date of the safety measures work at Onagawa Nuclear Power Station Unit 2 has been changed from the previous date of February 2024 to June 2024," Tohoku has now said.

"In addition, the timing of 'restarting', when the generators will be connected in parallel to start generating power, is expected to be around September 2024." It added: "Our company will continue to make every effort to complete the construction work, with safety as our top priority."

Tohoku applied to the Nuclear Regulation Authority (NRA) in December 2013 for a safety assessment of Onagawa 2 - a 796 MWe boiling water reactor (BWR) - to verify countermeasures applied at the plant meet new safety standards. In late November 2019, the NRA approved a draft screening document that concluded the upgraded plant will meet revised safety standards, introduced in January 2013. In February 2020, the NRA approved the final screening report, clearing the way for the unit to resume operation. Tohoku is required to complete the countermeasure upgrades and obtain the approval of local authorities before it will be able to restart Onagawa 2.

The Onagawa plant was the closest nuclear power plant to the epicentre of the earthquake and tsunami of 11 March 2011, but sustained far less damage than expected. The earthquake knocked out four of the plant's five external power lines, but the remaining line provided sufficient power for its three BWRs to be brought to cold shutdown. Onagawa 1 briefly suffered a fire in the non-nuclear turbine building. The plant was largely unaffected by the tsunami as it sits on an elevated embankment more than 14 metres above sea level, but the basement floors of unit 2 were flooded.

GLE laser enrichment on track for 2024 demonstration

20 February 2024

The owners of the Global Laser Enrichment (GLE) joint venture have agreed to double project expenditures in 2024 to accelerate demonstration of the SILEX laser enrichment technology at its Test Loop pilot facility in the USA this year.

Looking back: the Paducah site was home to a gaseous diffusion enrichment plant that ceased commercial operations in 2013 (Image: Department of Energy)

Australian company Silex Systems Ltd, which owns 51% of GLE, and Canadian company Cameco, which owns 49%, have approved plans which include an increase in expenditures to up to USD54.5 million in calendar 2024, Silex has announced. In addition to accelerating the technology demonstration project - which GLE anticipates completing this year - this will allow GLE to progress other key commercialisation activities, including site acquisition activities at Paducah, Kentucky, where commercial operations at the planned Paducah Laser Enrichment Facility (PLEF) could begin "as early as 2028", the company said.

"Specifically, GLE's CY2024 plan and budget supports the completion of the technology demonstration project, continued pursuit of government and industry support and funding opportunities, site acquisition activities related to the planned PLEF, preparation of the PLEF NRC license application, completion and commissioning of GLE's new facility in Wilmington, NC, and activities to support manufacturing readiness and supply chain development," Silex CEO Michael Goldsworthy said. "These activities provide the potential for GLE to deploy the SILEX uranium enrichment technology in a timely manner to help address the forecast supply gap in nuclear fuel markets in the coming years."

GLE is the exclusive worldwide licensee of the SILEX laser technology for uranium enrichment. The US Department of Energy agreed in 2016 to sell GLE around 300,000 tonnes of depleted uranium hexafluoride to provide the feedstock for PLEF to produce uranium hexafluoride (UF6) equivalent to natural uranium over three decades, with the output to be sold into the global uranium market. The plant's annual output of up to 5 million pounds of U3O8 (1923 tU) is equivalent to one of today's top-ten uranium mines by production volume, GLE says.

The multipurpose PLEF plant has three commercialisation options: the production of natural grade UF6 (containing 0.7% uranium-235) from the processing of depleted uranium; the production of low enriched uranium (LEU) containing up to 5% U-235 and so-called LEU+ (with U235 assays from 5% to 10%) from natural UF6 to supply enriched uranium fuel for existing reactors; and the production of high assay LEU (HALEU) (up to 20% U-235) to supply fuel for next-generation advanced small modular reactors.

"Subject to the successful completion of the pilot demonstration project, industry and government support, a feasibility assessment for the PLEF and market factors, the SILEX technology could enable GLE to become a major contributor to nuclear fuel production for the world's current and future nuclear reactor fleets," the company said.

The US Department of Energy-owned Paducah site was home to the Paducah Gaseous Diffusion Plant, constructed in 1952 to produce enriched uranium. The plant ceased commercial operations in 2013, and the site is now undergoing a remediation programme. The Department of Energy has been pursuing environmental cleanup goals at the Paducah site since 1988, spending more than USD more than $2.5 billion on cleanup projects since 1990.

Reactor testing of HTGR fuel confirms functionality, Rosatom says

20 February 2024

Samples of the fuel began tests in two research reactors in 2022, with Rosatom reporting they "fundamentally confirmed the functionality of the fuel design" for high-temperature gas-cooled reactors (HTGR).

(Image: Rosatom)

In a report on progress, the Russian nuclear corporation said: "By the end of 2023, in the IVV-2M reactor, one of the batches of laboratory samples of microfuel elements developed and manufactured by JSC VNIINM (part of TVEL), and fuel compacts developed and manufactured by JSC NII NPO Luch (part of Rosatom's scientific division), achieved burnup of 11-12% of heavy atoms. This practically corresponds to the design burnup values ​​for HTGR fuel."

The temperature of the HTGR fuel was maintained between 1000-1200 °C during the process. The results of the experiments are being taken into account in developing an HTGR design and also in developing a pilot production process for HTGR fuel.

It said: "Based on the totality of accumulated experimental data (including those obtained online throughout the entire reactor experiment), Rosatom specialists have fundamentally confirmed the functionality of the developed HTGR fuel design (TRI-structural ISOtropic particle fuel, TRISO fuel)."

It added that "in the work programme for 2024-2025 it is planned to carry out at the experimental sites of the Rosatom scientific division a complex of post-reactor studies of irradiated samples of HTGR fuel, as well as reactor experiments in the limiting and emergency modes of its operation".

The HTGR project is aimed at a future nuclear power plant "as part of an investment project to create domestic technologies for large-scale production and consumption of hydrogen and hydrogen-containing products".

According to the World Nuclear Association's information paper, HTGR fuel "is in the form of TRISO particles less than a millimetre in diameter. Each has a kernel of uranium oxycarbide, with the uranium enriched up to 17% U-235. This is surrounded by layers of carbon and silicon carbide, giving a containment for fission products which is stable to 1600°C or more. These particles may be arranged: in blocks as hexagonal 'prisms' of graphite, or in billiard ball-sized pebbles of graphite encased in silicon carbide".

Work begins on new Iranian research reactor

19 February 2024

Concrete pouring for a 10 MW research reactor has begun at Isfahan, the Atomic Energy Organisation of Iran (AEOI) has announced. The organisation has also declared operational a new emergency control room simulator for unit 1 at the Bushehr nuclear power plant.

Concrete pouring operations under way at the Isfahan site (Image: AEOI)

"The concrete placing operation of the main structure of the 10MW research reactor was started with the presence of Mr Eslami, the head of the AEOI, in the Isfahan nuclear site," the AEOI said. "The research reactor is a pool-type multi-purpose research reactor and will be built for various uses and purposes in the fields of industry and health."

According to an AEOI announcement on 5 February, the research reactor will use fuel enriched to 20% uranium-235 and is designed to produce a high-flux source of neutrons. Its main uses will be for the testing of fuel and nuclear materials, production of industrial radioisotopes and radiopharmaceuticals, and development of neutron beam lines for various uses such as radiography, diffraction, material analysis, production of silicon semiconductors and cold neutron sources, and education and research.

Bushehr simulator operational

In a separate announcement, the AEOI said the emergency control room (ECR) simulator at Bushehr 1 is now operational, and is scheduled for full training use within the next few months.

Bushehr 1's new emergency control room simulator (Image: AEOI)

The ECR is used by plant operators should the main control room (MCR) of the plant, a Russian-designed VVER-1000 pressurised water reactor, become unavailable. The ECR "is intended for activating the safety systems, bringing the reactor to sub-critical state and maintaining it for an unlimited period of time, removal of residual heat from the reactor, and monitoring important reactor parameters in case of MCR failure", the AEOI said.

All the components of the ECR simulator as well as the software needed to connect it to the plant's full scope simulator have been developed domestically, AEOI head Mohammad Eslami said.

Bushehr 1 (Image: AEOI)

British company pioneers new nuclear welding technique

19 February 2024

Sheffield Forgemasters has completed weld-assembly of a full-sized small modular reactor (SMR) nuclear vessel demonstrator assembly using Local Electron-Beam Welding (LEBW). It said the technique took less than 24 hours to complete four, thick, nuclear-grade welds, typically requiring a year of work to complete.

The ground-breaking welded SMR vessel (Image: Sheffield Forgemasters)

"With a diameter of three metres and a wall thickness of 200mm, construction of the vessel showcases the reliability and capabilities of LEBW, setting a dramatic new standard for weld-joining thick-walled components, previously untrialled in a demonstrator model," the company said.

Sheffield Forgemasters deployed specially developed parameters, meticulously fine-tuned during the welding development stage, including innovative sloping-in and sloping-out techniques to start and finish the weld, ensuring a clean and complete weld-join.

"We are delighted to have reached a significant milestone in assembling a nuclear vessel demonstrator, using electron beam welding for the first time at this scale, with 100% success and no defects," said Jesus Talamantes-Silva, research, design and technology director at Sheffield Forgemasters.

Michael Blackmore, senior development engineer and project lead, added: "The implication of this technology within the nuclear industry is monumental, potentially taking high-cost welding processes out of the equation.

"Not only does this reduce the need for weld-inspections, because the weld-join replicates the parent material, but it could also dramatically speed up the roll-out of SMR reactors across the UK and beyond, that's how disruptive the LEBW breakthrough is."

Sheffield Forgemasters - the only company in the UK with the capability to manufacture the large forgings required for SMRs - said the demonstration of LEBW technology's potential opens new horizons for "more efficient, low-cost and less time-heavy nuclear assemblies" and also has far-reaching implications for other projects which require thick-walled welded assemblies.

"We thank the government's Department for Energy Security and Net Zero for enabling the project through its Nuclear Innovation Programme," said Jacob Pope, development engineer and LEBW machine tool installation lead. "We also thank our esteemed partner, Cambridge Vacuum Engineering, for their invaluable support throughout this endeavour. Their remote and on-site assistance played an instrumental role in the success of this milestone, highlighting the collaborative spirit that drives us forward."

"Future company activities include an upcoming joint industrial project supported by key participants from the USA and UK," Sheffield Forgemasters said. "The objective is to initiate a code case or multiple cases to facilitate the deployment of this technology in accordance with the standards set by the American Society of Mechanical Engineers (ASME)."

In December, Sheffield Forgemasters said it was on track to regain ASME status as a supplier of heavy forgings and castings to the civil nuclear market, to position it for the proposed large-scale expansion of nuclear capacity in the country.

The company, which was acquired by the UK's Ministry of Defence in 2021, says an ASME Section III Division I NCA 3300, NCA 4000 and NQA-1 Code survey and audit, recommended it for Material Organisation (MO), and welding (NPT) accreditations. ASME MO and NPT status means it can supply castings and forgings (material) for civil nuclear applications and also be qualified to carry out weld construction activities on these materials.

Researched and written by World Nuclear News

SOUTH AFRICA
Amplats plans to cut thousands of jobs after profit plunge

Reuters | February 19, 2024 |

Waterval Smelter Complex in Rustenburg South Africa 

– Image from Anglo American Platinum.

Anglo American Platinum (Amplats) plans to cut thousands of jobs at its mines in South Africa, it said on Monday, after profit plunged by 71% last year.


The company said it was embarking on a restructuring that could affect about 3,700 jobs at its South African operations, or 17% of the Anglo American unit’s workforce, as it battles to keep a lid on costs after a slump in the price of platinum group metals (PGMs).

The miner is also reviewing agreements with 620 contractors or service providers to help save costs, it said.

South Africa’s PGM miners are resorting to cutting jobs and postponing planned investments as they battle to preserve margins after a sudden change in outlook following a rapid plunge in metal prices. Palladium declined by 37% last year after surging to more than $3,400 an ounce after Russia’s invasion of Ukraine. Rhodium, which soared to almost $30,000 an ounce in 2021, was trading at $4,365 an ounce on Monday.

The job losses come as platinum output has been gradually declining over the past decades with investors hesitating to invest in new mines as a growing battery electric vehicle sector clouds platinum metals’ demand prospects.

The restructuring decision “has not been taken lightly”, Amplats CEO Craig Miller said.

“It’s very much a last resort, not least as we recognise the unemployment challenges in South Africa and the socio-economic impact that the proposed restructuring may have on our people and the communities we are part of,” he said.

The Johannesburg-based producer’s profit slumped to 14 billion rand ($742 million) in the year ended Dec. 31 from 48.8 billion rand the previous year. Amplats slashed its dividend by 81% to 21.30 rand per share.

Amplats’ South African peers Sibanye Stillwater and Impala Platinum are also planning to cut staff.

The job losses could be avoided if Amplats sells its loss-making shafts, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said.

“We are going to engage Amplats and see if this can be avoided as we can’t allow such a huge number of workers to be retrenched,” Mammburu told Reuters. “We have always told Amplats to sell its loss-making mines to interested investors to avoid job losses.”

Anglo American CEO Duncan Wanblad told Reuters earlier this month that the group was considering deeper cost-cutting measures if market conditions did not improve, after announcing in December sweeping cuts to save about $1.8 billion by 2026.

Amplats is postponing planned projects at its Amandelbult complex, where most of the affected jobs are, Miller said. He declined to say whether Amplats would consider selling Amandelbult.

The platinum miner is targeting a combined 10 billion rand in savings this year by reducing costs and postponing planned expansion projects.

Amplats would continue to focus on driving efficiencies and could consider additional “appropriate responses” if metals prices weaken further, it said.

It will also place its Mortimer smelter on care and maintenance from the middle of this year, saving about 3.5 billion rand over the next three years, Miller said.

($1 = 18.8727 rand)

(By Prerna Bedi, Nelson Banya and Felix Njini; Editing by Kirsten Donovan and Mark Potter)

Deep-sea mining ‘seems to be inevitable,’ UN regulator says, as fight for critical minerals heats up

CNBC
WED, FEB 21 2024

KEY POINTS

Scraping the ocean floor for a treasure trove of valuable metals is likely just a matter of time, according to the head of the International Seabed Authority.

Established 30 years ago, the ISA is an international organization that regulates mining and related activities an area that covers around 54% of the world’s oceans.

When asked whether it was likely only a matter of time before countries begin deep-sea mining, ISA’s Lodge replied, “Clearly now, we are reaching a very high level of interest so I would say that yes it seems to be inevitable.”


Activists at a “Look Down action” rally to stop deep sea mining, outside the European Parliament in Brussels on March 6, 2023.
Kenzo Tribouillard | Afp | Getty Images

It’s likely only a matter of time before scraping the ocean floor for valuable metals becomes a reality, according to the head of the International Seabed Authority, the U.N. regulator that oversees deep-sea mining.

Michael Lodge, secretary-general of the ISA, told CNBC that global interest in deep-sea mining has climbed to levels not seen since the 1970s, with advocates clearly excited by the industry’s potential role in the energy transition.

“One of the main drivers of industrial interest is the potential to produce larger quantities of minerals at equivalent or lower cost to what can be produced on land,” Lodge told CNBC via videoconference.

“That’s the commercial driver and certainly there is vast resource potential in seabed minerals. The question is whether they can in the end be produced economically,” he added.

“But the resource potential is absolutely there. This is clear. The technology is advanced, so it seems like it is possible. And at the same time, it is very clear also that demand for minerals is increasing exponentially and is only going to continue to increase.”

His comments come as the ISA prepares to recommence talks on deep-sea mining in Kingston, Jamaica next month. The seabed watchdog’s forthcoming session will seek to iron out a regulatory framework that, if adopted, would give the go-ahead to deep-sea mining on a commercial scale.

Established 30 years ago, the ISA regulates mining and related activities in an area that covers around 54% of the world’s oceans. The group consists of 168 member states and the European Union. The U.S. is not a member of the ISA.

It hasn’t been done yet so it is very hard to say conclusively that it would be as destructive as some people claim that it would be.

Michael Lodge

SECRETARY GENERAL OF THE INTERNATIONAL SEABED AUTHORITY

The controversial practice of deep-sea mining involves using heavy machinery to remove minerals and metals — such as cobalt, nickel, copper and manganese — that can be found in potato-sized nodules on the ocean floor. The end-use of these minerals are wide-ranging and include electric vehicle batteries, wind turbines and solar panels.

Scientists have warned that the full environmental impacts of deep-sea mining are hard to predict. Environmental campaign groups, meanwhile, say the practice cannot be done sustainably and will inevitably lead to ecosystem destruction and species extinction.

Marine ecosystems

Notably, Norway’s parliament recently voted to approve a government proposal to open a vast ocean area for deep-sea mining on a commercial scale. The decision signaled the Nordic country’s intention to begin deep-sea mining activities in its national waters near the Svalbard archipelago.

To be sure, Norway’s government does not intend to immediately start drilling for minerals. Instead, mining companies will need to submit proposals for licenses that will be voted on a case-by-case basis in parliament.

When asked whether it was now likely a matter of time before countries begin deep-sea mining, ISA’s Lodge replied, “Clearly now, we are reaching a very high level of interest so I would say that yes it seems to be inevitable.”

“Whether that takes place in international waters, or in national waters, whether that be Norway or another country, that’s impossible to say,” he added. “It depends in part upon the terms and conditions I suppose.”

Environmental activists calling for an international moratorium on deep-sea mining.
Sopa Images | Lightrocket | Getty Images

The ISA Council, a body composed of 36 member states, has previously said it intends to continue its work on deep-sea mining regulations, with a view to finalizing the measures by July 2025.

To date, 24 countries worldwide have called for a moratorium or pause on the industry, while multinational companies such as Google, Samsung and Volvo have pledged not to source any minerals from the seabed.

Marine ecosystems are not well understood. Campaigners fear that exploration and exploitation activities in the deep sea could permanently alter a home that is unique to known — and many as yet unknown — species.

“It hasn’t been done yet so it is very hard to say conclusively that it would be as destructive as some people claim that it would be,” the ISA’s Lodge said.

“It is a very deliberate and slow process. Exploration has been going on in excess of 30 years now, so a great deal of information and data has been gathered. The technology is still developing, the more recent results of technology tests have been extremely encouraging in terms of being actually very low impact compared to other forms of mining.”

‘Desperate situation’

The world’s fast-growing appetite for energy transition minerals shows no sign of slowing down.

Nonetheless, the International Energy Agency has warned that today’s supply falls short of what is needed to transform the energy sector. That’s because there’s a relatively high geographical concentration of the production of many energy transition elements.

Norwegian Energy Minister Terje Aasland told CNBC last month that the government’s decision to move forward with deep-sea mining marked a necessary step into the unknown that could help to break China’s and Russia’s rare earths dominance.

“We’re in a fairly desperate situation,” Lodge said, citing the IEA’s expectation that demand for critical minerals is set to increase rapidly in the coming years.

“We’re nowhere close to meeting those targets at the moment with current land-based reserves. Even with the rapidly increased production that’s taking place in countries like Indonesia, we’re still nowhere close,” he added. “And permitting times, for example, in North America, for a new mine are in the order of more than a decade so it is very difficult.”

Philippine tycoon says bigger mining areas key to riding EV boom

Bloomberg News | February 19, 2024 | 

Manuel V. Pangilinan. Credit: Credit Suisse via YouTube

The Philippines should have bigger mines to encourage investment in the downstream sector, according to tycoon Manuel Pangilinan, who says the resource-rich Southeast Asian nation should take advantage of brisk demand for electric vehicles.


“It’s the mines that should be expanded to the point where you have the basis to justify smelting or refining operations in this country,” Pangilinan told reporters Monday evening. Pangilinan is the chairman of Philex Mining Corp. which has a copper-gold mine that’s slated to start production next year and is also looking at developing a new nickel mine.

The Philippines and Indonesia are the world’s biggest suppliers of nickel — used in making stainless steel and in lithium-ion batteries for EVs — to top market China. Unlike Indonesia, which boosted its nickel exports to $30 billion from $3 billion in two years as Chinese companies built refineries and smelters there, the Philippines continues to ship out most of its raw nickel ore amid a lack of processing facilities.

Philippine President Ferdinand Marcos Jr.’s government has been pushing miners to invest in the downstream sector to become a major player in the EV supply chain. Manila has considered following Indonesia by taxing nickel ore exports among a range of measures to lure investment in processing plants.

Pangilinan said he supports the plan to ramp up resource processing locally to export higher-value products. “But you have to have significant mines as factory inputs to your smelter or refining operations,” he said.

Less than 3% of the 9 million hectares that have been identified by the Philippine government as having high mineral potential is covered by mining tenements, according to data from the Mines and Geosciences Bureau.

Among the undeveloped ones is the Tampakan gold-copper mine in southern Mindanao island, considered one of the largest untapped mineral resource in Southeast Asia that had been halted by an open-pit mining ban, prompting Glencore Plc to quit the project in 2015.

Pangilinan said Philex’s Silangan copper-gold mine, also in Mindanao, should be operational by 2025 and the company has been exploring areas within Padcal mine in northern Philippines that could extend the mine life. Philex has also been looking at developing a new nickel mine in Zambales province in the main Luzon island.

The growing EV industry in China “will require a lot of nickel, a lot of copper, a lot of lithium,” said Pangilinan. “The future of mining is looking bright and we should be participating in those prospects now.”

(By Manolo Serapio Jr.)

Vale eyes more battery systems in its operations

Reuters | February 20, 2024 | 

Vale installed at Ilha Guaíba terminal (TIG), in Rio de Janeiro, one of the country’s largest battery energy storage systems to supply electrical demand (Image courtesy of Vale.)

Mining giant Vale is looking at expanding the use of industrial batteries to power ports and mining sites, said the firm’s Energy and Decarbonization director Ludmila Nascimento, in a move that would boost an industry still in early stages in Brazil.


Since last year the firm has used a battery system installed at its Ilha Guaiba Terminal (TIG) port, in Rio de Janeiro state, as a cost-cutting measure.

“We can replicate it to other Vale operations, not just at ports,” Nascimento told Reuters on Friday, adding the company could eventually use that technology at mining sites.

While the TIG project took around four years, the system could be replicated to three other ports the firm operates more quickly, said Nascimento.

She said that once the batteries are acquired, installing them in a port could be done in a matter of months.

At TIG, Vale uses batteries with a combined capacity of 10 megawatt-hours to store energy during the day and use it during hours of peak demand, when power is more expensive.

Other ports would use batteries with the same or slightly higher capacity, said Nascimento.

The fact that Vale, one of Brazil’s biggest firms used the system for seven months without fail could allay fears in the country that the technology is unreliable, said chief executive Sergio Jacobsen, of Micropower Energy, which supplied it.

The system led to a 40% cut on what TIG pays for energy distribution, said Vale in a statement, which will add up to around 3 million reais ($605,000) in savings per year. The upfront investment, undisclosed by Vale, was made by Micropower Energy, which will be paid back with money from the energy savings.

The large-scale battery business in Brazil is still in its early stages, but in other countries the technology is more widely used, said Jacobsen.

The storage system at TIG is the second largest in Brazil, said Jacobsen, with the first being a 60-MWh one inaugurated by energy distributor Isa Cteep last year.

As Brazil becomes more reliant on wind and solar power, it will need to store energy that would otherwise go to waste during hours when supply outpaces demand, he said.

($1 = 4.9614 reais)

(By Fabio Teixeira; Editing by Lisa Shumaker)

Column: Australia gives nickel a quick fix, but surgery of global industry needed

Reuters | February 19, 2024 |

BHP’s Nickel West operation. (Image courtesy of BHP.)

Australia is throwing a lifeline to its under pressure nickel mining sector, but the solution on offer is more of a band aid than the needed major surgery, the carving of the global nickel industry into green and dirty.


Resources Minister Madeleine King placed nickel on the critical minerals list, a move that allows the industry to access some of the A$4 billion ($2.7 billion) of federal government funding aimed at promoting minerals vital to energy transition.

“The international nickel price is forecast to stay relatively low through 2024, and likely for several years to come until the surplus of nickel in the market is corrected,” King said in a Feb. 16 statement.

“In the meantime, this puts further Australian nickel operations at risk,” she said, adding that six operating nickel facilities in the country have either announced cuts to output or gone into care and maintenance since December.

Australia is the world’s fifth-largest producer of nickel ore and the recent decline in prices has rendered much of the industry unprofitable.

BHP Group, the world’s largest mining company, said on Feb. 15 it will record a $2.5 billion non-cash impairment charge on its nickel business in Western Australia state.

The global benchmark nickel price on the London Metal Exchange (LME) ended at $16,356 a metric ton on Feb. 16, up 3.2% from the low so far this year of $15,850 on Feb. 7.

That low was the weakest price since April 2021 and LME nickel has been in a sustained downtrend since reaching $33,575 a ton on Dec. 8, 2022.

An increase in supply from Indonesia has cratered prices, as the South East Asian nation successfully boosted production of refined and semi-refined nickel, largely on the back of an export ban on raw ore, which in turn led to massive investment from China in new processing plants.

It’s here where the nickel problem lies.
How to split the market

Currently about 65% of nickel is used to make stainless steel, but this percentage is expected to decline in coming years as more of the metal is used in batteries needed to drive the switch to electric vehicles and renewable power generation with storage back up.

Much of the nickel produced in Indonesia is emissions intensive, with coal-fired power the mainstay of the energy-hungry smelting process.


What Australia needs is a bifurcation of the global nickel industry, with a split between nickel that is produced with low climate impact and that which is not.

In other words, the greener nickel will need to command a price premium over the dirtier metal produced in Indonesia and turned into products like batteries in China.

The problem is how to bring about what effectively will be a two-tier market, and who will pay the inevitable price premium?

The LME shows no hurry to implement a two-tier system for nickel, or indeed for other metals.

End users of energy transition metals such as car manufacturers also seem reluctant to go down this path.

This is understandable from their point of view. It would likely be a very hard sell on a showroom floor to convince a potential customer to pay several thousand dollars extra for an identical car made with “green” metals.

This means that governments, particularly those in developed Western countries, will likely have to drive the change.

Australia’s moves to support its nickel miners is a short-term fix, and a longer-term solution is needed.

This is something King is aware of, and she said Australia is “progressing important discussions with international counterparts in the US, Canada and the EU to ensure the high standards applied in Australian mining and production of nickel and other critical minerals are reflected in future pricing on international markets”.

The above quote is government-speak for setting up a system of regulation, taxation and carbon costs to drive up costs for Australia’s dirtier mining competitors and blunt China’s manufacturing heft.

In some ways, the Western world has to decide if it really does want to build an energy transition supply chain that has a low climate impact and largely cuts China out.

If it does make that decision, then it has to work out how it is paid for.

Ultimately it will fall on consumers one way or another. The trick is to either convince the public that this is a good thing, or do it in such a way that they don’t notice.

(The opinions expressed here are those of the author, Clyde Russel, a columnist for Reuters.)

(Editing by Michael Perry)

Western Australia offers royalty relief to struggling nickel producers

Reuters | February 17, 2024 | 

BHP’s Mt Keith concentrator. Credit: BHP Nickel West

Western Australia said on Saturday it would offer royalty relief to nickel producers in a bid to buoy the struggling industry, a day after the metal was classified as a “critical mineral”, paving the way for producers to access billions of dollars in cheap government loans.


Australia wants to build a battery chemicals industry to reap more value from mineral wealth, but its nickel sector faces heavy job cuts after a jump in Indonesian supply saw prices drop 40% in a year.

In a statement on Saturday, Western Australia Premier Roger Cook announced a nickel financial assistance program, which he said would give a 50 percent royalty rebate for 18 months, when prices were below $20,000 per tonne, repayable over 24 months.

“The Cook government will offer royalty relief to Western Australia’s crucial nickel industry, supporting thousands of local jobs as well as the state’s vision of becoming a global battery minerals processing hub,” the premier’s statement said.

Federal Resources Minister Madeleine King on Friday placed nickel on the critical minerals list, meaning nickel companies will have access to financing under Australia’s $2.6 billion Critical Minerals Facility which offers low interest loans, and related grant programmes.

Weak nickel prices have forced Australia’s high cost producers to announce several writedowns and restructures, and analysts said last month it will force a rethink by top global miner BHP Group on its nickel strategy this year.

(By Sam McKeith; Editing by Raju Gopalakrishnan)

First Quantum inks $500 million copper deal with Jiangxi amid Panama mine struggles

Cecilia Jamasmie | February 21, 2024 |

Cobre Panama mine was First Quantum Minerals’ largest copper operation. (Image courtesy of Cobre Panama.)

First Quantum Minerals (TSX: FM) said on Wednesday it would get a $500 million injection from Jiangxi Copper, the Canadian miner’s largest shareholder, that will help it to shore up finances.


The three year prepay arrangement with Jiangxi will see First Quantum deliver 50,000 tonnes of copper anode per year to the Chinese miner. The material will be extracted at the Kansanshi mine in Zambia and is payable at market prices, the company said.

“This arrangement is a reminder of the strategic nature of copper as supply challenges abound across the sector, First Quantum said in a statement. “Constructive discussions with our lenders for an amendment and extension of our loan facilities, which are an important component to our fulsome solution, are well-advanced and there is a high degree of alignment among all parties.”

The company, which was forced to shut down in December its flagship copper mine in Panama, has quickly seen its financial situation deteriorate. Its exposure to nickel, of which prices have dropped to two-year lows, has added extra pressure.

Together with reporting a net loss for the fourth quarter, First Quantum recorded an impairment charge of $900 million, which includes $854 million at its Ravensthorpe nickel mine, due to significant margin pressure triggered by the battery metal’s weak prices and high operating costs.

First Quantum has billions of dollars of debt maturing in the coming years and concerns about the future of Cobre Panama, its main source of income, has put it at risk of a covenant breach in the coming year. This has resulted in “material uncertainty” that may cast doubt on the company’s “ability to continue,” the miner said.

The Vancouver-based company is in talks with lenders to amend and extend its loan facilities, and expects a conclusion “in the near term.”

First Quantum holds out hope the May Presidential elections in Panama may bring a change in fortune for its halted operation, one of the world’s largest new copper mines to open in the past decade

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First Quantum holds out hope the upcoming Presidential elections in Panama will bring a change in fortune for its copper mine. (Image provided by First Quantum.)

First Quantum is also considering a minority investment from strategic investors in its Zambian business, and is running a sales process for its small Las Cruces mine in Spain, chief executive Tristan Pascall said in a Wednesday call conference to discuss fourth quarter results.

The company is the sole owner of the Sentinel copper mine and has a 80% stake in the Kansanshi mine. Its presence in Zambia, Africa’s second-largest copper producer, includes the Fishtie copper project, near the border with the Democratic Republic of Congo. It also comprises two licence options through a deal with African Pioneer

 (LON: AFP).

First Quantum re-shuffles management at Zambian operation

Reuters | February 20, 2024 | 

The Sentinel open-pit copper mine. (Image courtesy of First Quantum Minerals.)

First Quantum Minerals Ltd (FQM) is re-shuffling top-tier personnel at its Zambian operations in a bid to tackle production and safety shortfalls in the South African country, an internal memo seen by Reuters showed.


The latest action comes as the company continues to deal with fallout from the sudden closure order of its flagship Panama mine late last year. FQM has lost more than half its market value since public protests against the Cobre Panama project started in October.

“Whilst we recognize the solid efforts of the teams at both Sentinel and Kansanshi, the last two production years at our Zambian operations have fallen short of our overall expectations in terms of safety and production,” said an email sent by chief operating officer Rudi Badenhorst to the employees of the Kansanshi mine last week.

With the impact of the suspension of operations at Cobre Panama towards the end of last year, the memo said, “we recognise our need to reinvigorate our commitments to deliver on our investments in Zambia.”

Meiring Burger, who was part of First Quantum’s group mining team was promoted to general manager of Kansanshi mine, while Axel Kottgen who led the Enterprise nickel project in Zambia was promoted to assistant general manager “to achieve target outcomes at Kansanshi,” the note said.

Anthony Mukutuma, will lead external relations in Zambia to work on government and political strategy, the note added.

First Quantum did not immediately respond to a Reuters request for comment.

First Quantum suffered a major blow in Panama last November when the Panama government asked it to shut down one of the world’s biggest copper mines, accounting for 40% of the company’s revenues.

First Quantum exercises option over two licences as it looks to expand in Zambia

Earlier this year, FQM said it would move ahead with planned investments in Zambia even as the company cut production guidance.

The two Zambian mines, Sentinel and Kansanshi, generated $943 million in revenue for the quarter ending September 2023 and an operating profit of $210 million, company filings showed. In 2023 two contract workers died at the company’s Zambian mines in separate incidents.

Total copper production at Zambia in 2023 was 349kt, 10% lower than in 2022, due to a combination of lower throughput at both sites and lower grades at Kansanshi, the company said in a statement on Jan. 15.

First Quantum said in January that it was exploring the sale of smaller mines and stakes in its larger mining assets.

Fitch ratings agency has warned that permanent closure of First Quantum’s Panama mine could hurt the company’s borrowing capacity.

(By Divya Rajagopal; Editing by Veronica Brown and Susan Fenton)

Related Article: KoBold Metals expands Zambia footprint with Midnight Sun deal

Video: Cobre Panama mine closure investigated by Canada’s CTV News

W5 visits Panama as protests rage against Canadian-owned mine


NOW PLAYING

33:58

W5: Panama's War with Canada


Canadian mining company triggers an uprising

Daniel Otis
CTVNews.ca Journalist
Avery Haines
Host and Managing Editor, W5
Published Feb. 17, 2024 


W5 visited Panama as mass protests raged against a Canadian-owned mine that has now been ordered close.

Known as Cobre Panama, the massive copper mine has been the target of widespread demonstrations since October, when Panama's government signed a contract allowing it to operate for at least 20 more years.

"The Canadian government promotes itself as really aware of the environment," environmental biologist Guido Berguido told W5 at a protest. "We cannot believe that a Canadian company would do this to our national resources."

Owned by a subsidiary of Canada's First Quantum Minerals, the sprawling 13,000-hectare, open-pit mine is bordered by jungle about 120 kilometres west of the capital, Panama City, on the country's Atlantic coast.

Pointing to its alleged impact on the environment and water supplies, a broad coalition of Panamanians – including students, environmentalists, labour groups and indigenous communities – have protested for weeks, with police resorting to tear gas and rubber bullets as the country has ground to a halt.

"People already are feeling betrayed by all that is institutional in Panama," a photographer, who lost an eye as police fired at protesters, told W5. "It's not just the mining, many things are linked to corruption. People are tired of that."

Pointing to its alleged impact on the environment and water supplies, Panamanian students, environmentalists, labour groups and indigenous communities have protested for weeks (W5)

Protesters have also blockaded the mine's access to roads and port, hobbling its operations.

"We knew from the beginning that this was their weak point," a fisherman told W5 from a sea blockade. "We knew from the very first day that by doing our protests here, we were going to accomplish, and be successful." 

In November, Panama's Supreme Court ruled that the government's concession with the company is unconstitutional(opens in a new tab). The agreement would have secured Panama at least US$375 million a year, which was more than 10 times the previous deal and the largest private investment in the country's history.

After defending the deal amid widespread opposition, Panama's government later announced that it would shut down the mine, although the process could take years.

"The government just wants to be rich and forget about us," a student protester told W5 from a barricaded university. "We don't get nothing."

The multibillion-dollar company plans to challenge the decision and is seeking arbitration(opens in a new tab) to reinstate its contract or obtain damages. First Quantum says it generates thousands of jobs and contributes up to five per pent of Panama's GDP.

"First Quantum has invested in excess of US$10 billion to build a world-class mine, port and power station in Panama," the company said in a December press release(opens in a new tab). "The Company will pursue all appropriate legal avenues to protect its investment and rights."

Rio Tinto reports 12% profit drop but returns more cash to investors

Reuters | February 21, 2024 | 

Iron ore operations in the Pilbara region (Credit: Rio Tinto)

Rio Tinto reported a 12% fall in annual underlying earnings on Wednesday, in line with forecasts, but paid a better-than-expected final dividend as it said inflation pressures were starting to recede.


Rio said its underlying earnings came in at $11.8 billion for 2023, down from $13.4 billion a year earlier, mostly due to lower prices for aluminium and its minerals division. That was largely in line with the LSEG consensus estimate of $11.7 billion.

Rio declared a final dividend of 258.0 cents per share, up from 225.0 cents per share in 2022 and ahead of the LSEG estimate of 247.0 cents per share.

Rio Tinto’s board gives green light to Simandou

The world’s largest iron ore producer said it expects Pilbara production costs to rise in 2024 due to persistent labour and parts inflation in Western Australia.

However, the worst of the inflation pressure is likely in the past, chief financial officer Peter Cunningham told reporters.

“We are starting to see them (costs) moderate now as we go into 2024,” he said.

“The reality is we remain in a very strong financial position and can afford to undertake our growth agenda and continue to pay out at 60%.”

At Rio’s iron ore division, which accounted for around 80% of its profits, underlying earnings grew by 6%, outpacing a 2% increase in prices of iron ore.

However Rio warned that it sees unit production costs rising to between $21.75 and $23.50 per metric ton from $21.50 in 2023.

“While inflation has eased, we continued to see lag effects in its impact on our third party costs, such as contractor rates, consumables and some raw materials; we expect this to stabilize in 2024,” the company said in a statement.

Average prices Rio Tinto received for aluminum sold in 2023 slipped from Covid-era peaks, as supply chains normalized and demand from Western markets weakened. This offset a boost from production growth across major commodities including copper.

The miner booked net impairment charges of $0.7 billion, after tax, mainly related to its alumina refineries in Queensland, taken in the first half of 2023, as the assets faced challenging market conditions.
Inorganic growth

Rio’s net debt remained low at $4.2 billion, which has spurred expectations that it may look to grow via acquisition.

CEO Jakob Stausholm said last August that Rio Tinto was open to small, bolt-on acquisitions to shape its portfolio including in Canadium lithium but that valuations were too high.

He stuck to that view on Wednesday, even following a slide in lithium prices that has hit company valuations.

“I have seen that prices of lithium companies have come down but they still remain at the high end so it’s not something that I get super excited about at this point in time,” Stausholm told media on a call after the results were released.

For now, Rio Tinto is focusing on developing its Argentine Rincon lithium project and seeking government approval to develop its Jadar mine in Serbia, he said.

It was unlikely to move into other battery minerals such as nickel or cobalt given the rising market share of lithium iron phosphate batteries (LFP) which don’t use them, he added.

Its biggest growth project for now is the massive Simandou iron ore mine in Guinea, on which it expects to spend another $5.7 billion over the next three years.

(By Melanie Burton, Himanshi Akhand and Archishma Iyer; Editing by Subhranshu Sahu and Sonali Paul)

Rio Tinto inks renewable power purchase deal for Gladstone operations

Reuters | February 20, 2024 | 

Bungaban wind farm. Credit: Windlab

Rio Tinto Ltd has signed a renewable power purchase agreement with specialist renewable energy firm Windlab to buy the majority of electricity from its planned 1.4 giga-watt (GW) wind energy project in Queensland, the miner said on Wednesday.


Rio Tinto will buy 80% of all power generated from the Bungaban wind energy project over 25 years, the world’s largest iron ore producer said.

The project is currently in early development, and will be built and operated by Windlab in Queensland, subject to development and grid connection approvals.

The construction of the Bungaban project is targeted to start in late 2025 and is expected to produce electricity by 2029, Rio Tinto said in a statement.

“This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and provide a sustainable future for heavy industry in Central Queensland,” chief executive Jakob Stausholm said.

The remaining 20% of the Bungaban project’s generated electricity will supply Australia’s National Electricity Market.

Last month, Rio Tinto announced another renewable energy purchase deal with European Energy Australia to buy all electricity from the 1.1 GW Upper Calliope solar farm for its Gladstone operations.

(By Sameer Manekar; Editing by Pooja Desai and Maju Samuel)