Lumber: US housing.
Steel. China construction.
Bitcoin. Digerati.
U.S. shale oil production will increase by a modest 42,000 bpd in August, according to the Energy Information Administration.
In its latest Drilling Productivity Report, the EIA forecast that almost all of this production increase will come from the Permian, at 52,000 bpd. Production in the Appalachia Basin will also increase, by 2,000 bpd. At the same time, the EIA said, production across the rest of the shale plays, excluding Haynesville, will decline by a combined 13,000 bpd. Production at Haynesville will remain flat on the month.
This modest forecast increase would push total U.S. shale oil output to 7.9 million bpd in August, still a far cry from what the U.S. shale basins were producing before the pandemic as shale drillers remain cautious of sudden price swings in the price of oil.
This cautiousness played a bad joke on some shale producers, however. These companies hedged their 2021 production soon after oil prices began recovering, eventually losing money because they hedged too early. Many did not hedge, but those who did now have less motivation to boost production as this would effectively mean losing more money on their premature hedges.
According to Rystad Energy, there is also another purely technical reason why U.S. shale oil production is slow to come back. Currently, the energy consultancy said, most U.S. shale producers are boosting production from drilled but uncompleted wells. For a more meaningful ramp-up of production, they would need to drill more new wells.
“Even if the US shale industry wanted to produce more, the time required from a price signal to a significant production impact is at least nine months, including the time it takes to make an investment decision, the months needed from spud to frac end, plus the last stage from frac end to peak production,” said Artem Abramov, Rystad’s head of shale research.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Add one announced for Coventry this am.
Mission critical" plans have been submitted for an electric car battery plant that could create up to 6,000 new jobs.
Proposals for the "gigafactory" at Coventry Airport were first put forward in February.
Coventry City Council is putting forward the blueprint alongside Coventry Airport Ltd.
Steve Turner, from the Unite union, said the factory would be a "shot in the arm" for the West Midlands economy.
Backers say the plant, which would be 5.7 million sq ft in size, could attract £2bn of investment.
The city council and Warwick District Council will vote on the proposals later this year.
If plans are passed, the site could be operational by 2025, though it would need investment from the private sector.
The factory will be powered by 100% green energy, and will be able to recycle used batteries as well as build new ones, according to the plans.
Battery capacity announced by cathode.
The Australian government has hit out at the European Union's proposal to tax energy-intensive imports from countries without a carbon price.
It means Australian exporters would pay more to sell into the EU compared with producers from countries that have more ambitious climate policies.
Trade Minister Dan Tehan has claimed the tax is protectionism and could contravene global trading rules.
"If they're now putting border tariffs on those products as they come into the EU, they're treating differently products within the EU compared to how they're treating products that they're importing from other countries," he told ABC radio on Thursday.
"We will be looking very closely at what they're doing. The last thing the world now needs is extra protectionist policies being put in place."
EU importers would buy certificates for the carbon price that would have been paid were the goods produced under the union's emissions trading scheme.
Once a non-EU producer can show they have already paid a price for the carbon used in the good's production, the EU importer can fully deduct the cost.
Also under proposed changes is a ban on the sale of new petrol and diesel cars by 2035 to speed up the switch to electric vehicles.
The carbon border tax would target materials such as iron, steel, aluminium, fertilisers and electricity starting from 2023 as part of a broader plan to cut emissions 55 per cent by 2030.
The EU sees it as an incentive for trading partners to up their game on climate. The Australian government, widely considered a global laggard on climate action, has construed it as a punishment.
"We think it would be much better to incentivise countries to deal with emissions reduction rather than penalising them," Mr Tehan said.
The Australia Institute think tank says the proposal will affect the nation's direct exports, such as iron, as well as its sales of materials like alumina to non-EU countries that then sell into it.
"It is now clear that the taxes on Australian high-polluting goods are coming, and the revenue will be collected by and invested into our trade competitors," the institute's climate and energy director Richie Merzian said.
"Rather than blindly claiming this is a protectionist measure, the Australian government could instead choose to engage constructively in the interests of Australian exporters."
8 July 2021, Rome - Global food commodity prices fell in June for the first time in 12 months, according to a benchmark United Nations report released today.
The FAO Food Price Index averaged 124.6 points in June 2021, down 2.5 percent from May, but still 33.9 percent higher than its level in the same period last year. The decline in June marked the first drop in the Index following twelve consecutive monthly increases.
The FAO Food Price Index tracks changes in the international prices of the most globally traded food commodities. The drop in June reflected declines in the prices of vegetable oils, cereals and, though more moderately, dairy products, which more than offset generally higher meat and sugar quotations.
The FAO Vegetable Oil Price Index fell by 9.8 percent in the month, marking a four-month low. The sizeable month-on-month drop mainly reflects lower international prices of palm, soy and sunflower oils.
The FAO Cereal Price Index fell by a more moderate 2.6 percent from May, but remained 33.8 percent higher than its value in June 2020. International maize prices dropped by 5.0 percent, led by falling prices in Argentina due to increased supplies from recent harvests as a result of higher-than-earlier expected yields. International wheat prices declined slightly by 0.8 percent in June, with a favourable global outlook supported by improved production prospects in many key producers outweighing most of the upward pressure from dry conditions affecting crops in North America.
The FAO Dairy Price Index fell by 1 percent to 119.9 points in June. International quotations for all dairy products represented in the index fell, with butter registering the highest drop, underpinned by a fast decline in global import demand and a slight increase in inventories, especially in Europe.
The FAO Sugar Price Index moved against the overall food price trend, rising by 0.9 percent month-on-month, marking the third consecutive monthly increase and reaching a new multi-year high. Uncertainties over the impact of unfavourable weather conditions on crop yields in Brazil, the world's largest sugar exporter, exerted upward pressure on prices.
The FAO Meat Price Index also rose by 2.1 percent over the month to June, continuing the increases for the ninth consecutive month and placing the index 15.6 percent above its value in the corresponding month last year, but still 8.0 percent below its peak reached in August 2014.
World cereal inventories expected to rise for the first time since 2017/18
FAO's forecast for global cereal production in 2021 has been lowered marginally to 2 817 million tonnes, according to the latest Cereal Supply and Demand Brief released today. However, the figure remains 1.7 percent, or 47.8 million tonnes, higher than in 2020, which would mark a new record high.
Forecasts for world coarse grains production have been cut back to 1 513 million tonnes, 3 million tonnes below last month's expectation. A large cut to the Brazilian maize production forecast accounts for the bulk of the expected global decline, with prolonged periods of dry weather dragging down yield expectations.
World wheat output in 2021 has been lowered by 1 million tonnes to 784.7 million tonnes, still 1.2 percent higher year-on-year, as the dry weather conditions in the Near East cut back yield prospects.
By contrast, the forecast of global rice production in 2021 has undergone a slight upward adjustment since June, with a record of 519.5 million tonnes of rice now expected to be harvested in 2021, up 1.0 percent from 2020.
World cereal utilization in 2021/22 has been lowered by 15 million tonnes from the previous month to 2 810 million tonnes, nevertheless still 1.5 percent higher than in 2020/21. The downward revision comes largely from lower-than-earlier-anticipated utilization of maize in China for animal feed.
World cereal stocks by the close of seasons in 2021/22 are now forecast to rise above their opening levels for the first time since 2017/18, following a sharp upward revision to 836 million tonnes, up 2.4 percent from last year's relatively tight level. Higher maize stocks foreseen in China account for the bulk of this month's upward revision to world cereal inventories.
FAO's latest forecast for world trade in cereals in 2021/22 has been raised slightly since June and now stands at a record 472 million tonnes, driven primarily by likely large maize purchases from China taking global maize trade to record levels.
Food insecurity and COVID-19
The effects of the COVID-19 pandemic, primarily in terms of income losses, have exacerbated vulnerabilities and heightened existing levels of food insecurity according to the latest Crop Prospects and Food Situation Report, which will also be released on Thursday. FAO assesses that globally 45 countries, including 34 in Africa, 9 in Asia and 2 in Latin America and the Caribbean, are in need of external assistance for food, with conflicts and climate-related shocks continuing to underpin the high levels of severe food insecurity.
The Crop Prospects and Food Situation report also provides the latest data on Low-Income Food Deficit Countries (LIFDCs). According the most recent assessments, total cereal production of the 47 LIFDCs is forecast to decline by 2.1 percent in 2021, to 190 million tonnes. The drop mostly relates to expected production downturns in Near East Asian countries, notably in Afghanistan and the Syrian Arab Republic, where widespread and prolonged drought conditions cut yields and dampened this year's production prospects. Among the LIFDCs in Africa, scarce rainfall in Somalia is expected to result in a sizeable production decline, and small reductions are also likely in several West African countries, where conflicts continue to erode farming households' productive capacities. In Southern African countries, production upturns are expected to boost households' food availability and partly offset some negative effects from the COVID-19 pandemic.
The 45 countries in need of external assistance for food are: Afghanistan, Bangladesh, Burkina Faso, Burundi, Cabo Verde, Cameroon, Central African Republic, Chad, Congo, Democratic People's Republic of Korea, Democratic Republic of Congo, Djibouti, Eritrea, Eswatini, Ethiopia, Guinea, Haiti, Iraq, Kenya, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Namibia, Niger, Nigeria, Pakistan, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syrian Arab Republic, United Republic of Tanzania, Uganda, Venezuela, Yemen, Zambia and Zimbabwe.
China’s establishment of a national pipeline network, PipeChina, last October is creating a shift in China’s oil and gas industry, which aims to create greater competition and encourage new players in the sector. PipeChina acquired the oil and gas pipeline assets, storage facilities, and import terminals of the three state-run firms, China National Petroleum Corp. (CNPC/PetroChina), China Petrochemical Corp. (Sinopec), and China National Offshore Oil Corp. (CNOOC) upon its creation last year in an attempt to make the industry more efficient.
PipeChina acquired PetroChina’s Kunlun Energy Co. stakes, giving it a 60 percent share in its Beijing natural gas pipeline as well as a 75 percent share in its Dalian LNG company, at a cost of $6.23 billion. PetroChina gave up the most assets of the three majors in the deal.
Following the restructure, PetroChina has taken a step back, but CNOOC and Sinopec have now opened more offices across the region to enhance distribution, decentralizing power for the first time. Sinopec also merged its natural gas upstream and downstream operations in anticipation of the change, aiming to expand its gas network in the region.
In the Spring, PipeChina started on the construction of a $1.3 billion 413.5km-long natural gas trunk line in the north of the country. The pipeline is expected to transport 6.6 billion cubic meters of gas or around 2% of China’s total gas consumption.
The pipeline will be connected with the Power of Siberia line, bringing Russian gas to China, as well as being connected to the national Shaanjing pipelines.
PipeChina is also altering the Chinese oil and gas industry by striving to meet green energy targets encouraged at the international level, aiming to increase its carbon emissions and energy consumption to a peak before reducing emissions from 2030. This is in line with China’s eventual net-zero aim for 2060.
When talking of the company’s plans to reduce its carbon footprint Tang Shanhua, deputy general manager of business operations at PipeChina, explained that "In the next step, we will optimize our energy consumption structure and purchase more electricity that is generated from renewable sources through market trading."
PipeChina is currently exploring cold energy in liquefied natural gas (LNG) terminals and natural gas recycling as a means of reducing carbon emissions by the next decade. The firm is planning to establish more natural gas pipelines and storage facilities across the country but aims to eventually invest in hydrogen storage as well as carbon capture and storage (CCS) and transport technology as the world energy consumption gradually shifts away from fossil fuels.
Just this week, Sinopec commenced construction on a CCS project in the east of China, expected to be the country’s biggest, as part of the firm’s aim to become carbon-neutral by 2050. The carbon dioxide will come from Sinopec's Qilu refinery in the Shandong province and will then be used for hydrogen production, where it will then be injected into 73 wells in the Shengli oilfield to enhance oil production.
Sinopec expects to inject 10.68 million tonnes of carbon dioxide into the oilfield over 15 years to increase crude oil production by as much as 3 million tonnes. Operations should commence by the end of the year with plans to carry out a similar project in the neighboring Jiangsu province.
As PipeChina aims to increase competition among national players by altering their roles in the oil and gas industry, as well as attracting new companies to participate in the sector, China’s majors are beginning to diversify their roles by expanding to the regional level and enhancing green energy practices through greater investment in innovative CCS and hydrogen production projects. This could be the move China needed to reinvigorate the national oil industry.
By Felicity Bradstock for Oilprice.com
Price: From $1.52m
Location: Harvey
Area: 14.15ha
Agent: Elders Real Estate
Contact: Doug Butcher 0409 374 671 or Noel Jones 0418 932 438
DRIVE in off the sealed road, just west of Harvey, onto this outstanding, 14.15 hectare lifestyle property.
Not only is it in a great location, it also has everything you could possibly wish for, creating the country lifestyle for your family which is so sought after since COVID-19.
An entertainer's delight is the best way to describe this large country-style, five-bedroom, three-bathroom brick and iron home, which was built in 2008 and was set well off the road for privacy.
The property offers amazing living and entertaining areas, both inside and out.
Comfort is catered for with evaporative and reverse-cycle air-conditioning plus two slow combustion fireplaces.
Entertaining will be a breeze and couldn't get better with a huge alfresco entertaining area overlooking the below-ground, indoor, heated pool and separate spa and large bar area.
A second large kitchen completes this wonderful area.
Power bills will be minimal with the large five kilowatt PV solar unit providing bonus power to heat the pool and run the home.
There is lots of room for pets and animals, with some of the best loam soils Harvey has to offer.
There's a chicken yard, vegetable patch and well established lawns and gardens.
Water is plentiful for the livestock and gardens with a pressured outlet combined with 10 shares in Harvey Water.
This property would be ideal for horses or any livestock with the ability to grow lots of grass.
There is plenty of room for 11 cows and calves all year, with eight well-fenced paddocks and a neat set of cattle yards with a head bale.
Sheds with power are plentiful, consisting of a 24 metre x 14m shed, a 15m x 9m shed and a 19 x 9m shed, all with a large hardstand area which is ideal for trucks and turning vehicles.
There is an attractive timber-lined winter creek running through the property.
It's time to live the quiet, rural lifestyle, being only one hour and 45 minutes from Perth and 35 minutes from Bunbury, but be ever so close to many amenities that Harvey has to offer.
This is an exceptional property with so much to offer.
The story Rural lifestyle at a convenient location first appeared on Farm Weekly.
The emergence of the Communist Party in China (CPC) also known as the Chinese Communist Party (CCP) one hundred years ago changed the geo-strategic paradigm of that country. Founded in 1921 in the city of Shanghai, mainly by Chen Duxlu and Li Dazhao, at a time when the vast country was racked by war and poverty, it received initial support from the Far Eastern Bureau of the Communist Party of the Soviet Union. This enabled the CPC to grow quickly and by 1949 had garnered sufficient strength to drive the Kuomintang Nationalist Government of Chiang Kai-shek out of China to Taiwan at the conclusion of the Chinese Civil War. This led to the establishment of the People's Republic of China on October 1, 1949.
Political historians have noted that the principle of democratic centralism that guides the CCP is based on the principle of democratic centralism and Marxism-Leninism that was conceived by the Russian leader Vladimir Lenin. This entails and ensures a democratic and open discussion on policy on the condition of unity in upholding the agreed upon policies. This evolving scenario received a further push forward over the years from the great Chinese leadership-- starting from Mao Zedong to Deng Xiaoping.
It may be recalled here that after coming to power, China under Mao had a difficult time. Under his leadership it went to war against the USA in the Korean Peninsula with the help of the Soviet Union. That brought about difficult economic challenges within the country. However, under Mao's guidance the early and mid-1950s saw the Party's rise in power through public support and the gradual overcoming of the socio-economic challenges.
However, 1958 saw the initiation of some more difficulties because of the Communist Party's new philosophy of 'Great Leap Forward' that aimed at transforming an agrarian China into a modern industrial power. There were differences of opinion and protests but the dynamics continued. There was also deconstruction of household farming and the establishment of "people's communes", Mao also mobilised the entire country's infrastructure to catch up with the United Kingdom in terms of steel output.
Historians have, however, drawn attention to the fact that this effort did not have the desired consequences. Some strategists associated with socio-economic history, have during the anniversary celebrations, recalled the severe economic collapse and the famine between 1959 and 1961- when up to 36 million people are supposed to have died.
He also launched the Cultural Revolution in 1966 to promote the Communist institution. It was a great effort by the exemplary leader but many other initiatives stopped with his passing away in 1976.
After that came the pragmatic leadership of Deng Xiaoping. He provided China with a fresh lease of life. With the rise of Xi Jinping in 2012 the cycle of pragmatism has moved forward with care. In this context, in his own way the current Chinese President, a transformational leader, has added greater paradigms that did not exist in the time of his predecessors-- Hu Jintao and Jiang Zemin.
The matrix guiding the CCP has had to take into account over the last three decades the collapse of Eastern European communist governments in 1989-1990 and also the dissolution of the Soviet Union in 1991. This has been a difficult task but China appears to have been able to surmount many of the changing dimensions. As of 2021, the CCP has emerged as the second largest political party in the world with over 95 million members-- slightly behind India's Bharatiya Janata Party (BJP).
As the ruling Chinese Communist Party celebrated its 100th anniversary at the end of June, analyst Michael Standaert drew particular attention to the fact that in the current scenario China's leaders "face formidable economic challenges, from falling birth rates and income inequality to rural-urban opportunity gaps." He has also warned that if the Chinese leadership fails to successfully address these issues, the country will fail to reach a higher, more developed status.
In this context, some observers have pointed out that private education companies, in principle, are facing difficulties in providing extracurricular lessons to numerous Chinese children and are being very carefully monitored by the government in view of the pressure generated by them on students whose education is turning out sometimes to be financial burdens for families. Similarly, falling birth rates and a rapidly ageing population are spelling trouble for China's future economic growth.
To this is being added the factors related to income inequality, sub-regional economic disparities and wide gaps in economic opportunities that are available within the rural and urban areas. Nevertheless, such anxiety should not be identified as being solely dominant in China. This is also found in the United States, and many countries of Europe and Latin America.
China's President Xi Jinping has, however, in his speech in late January promised to tackle the nation's pressing problems so that China is able to usher in an era of "common prosperity". To enable such a profile to emerge, Xi has decided to offer better income distribution, education, social security, affordable medical care, housing, elderly care, child support, and quality employment. These might be difficult tasks because of existing structural and political barriers, but China has shown the world that it can overcome challenges. Otherwise, it would not be the second largest economy in the world today.
Deng Yuwen, former editor of an influential Communist Party newspaper, now living in exile, has made an interesting observation. Ten years ago, the Party was gradually fading into the background and Xi Jinping was not satisfied with that. Consequently, over the last decade he has taken comprehensive steps to use the Party to control the entire country on the basis of authoritarian values. He has also noted that now "China is powerful; it's doing business with the world, so other countries need to be mindful of China's emotions and its practices".
Max Baucus, a former US Democratic Party Senator who served as US ambassador to China from 2014 to 2017 has also stated something similar in terms of denotation. He has drawn attention to a nuance- "The vast bulk of people in China… care very little about changes in the Party structure because they're more concerned about their own lives. Living standards in China have risen dramatically in the last 20 years and they're very happy about that." This factor is something that must not be overlooked by the USA.
In this regard strategic analysts have pointed to the large quantities of pomp, pageantry and pyrotechnics that was evident in the Chinese celebrations on CCP's 100th birthday and reiterated that this dynamics brought into sharp relief the prospect of an ever-rising, ever more prosperous capitalist China.
One needs to note here that the Chinese government's celebrations were planned meticulously. It was kicked off by Xi Jinping on June 29 through a ceremony honouring 29 people for "outstanding contributions to the party". Recipients of the newly established July 1 medal included several soldiers and officials from the restive provinces of Tibet and Xinjiang (where the United Nations has said about one million, mostly Muslim, Uighurs have been held in detention camps that China calls vocational skills training centres). This interesting move was obviously undertaken by Beijing to demonstrate that the Communist Party considers that it is important to battle separatism and encourage loyalty to the Communist Party.
On July1, Xi in his speech displayed his determination by warning foreign powers that they will "get their heads bashed" if they attempt to bully or influence China unnecessarily. He also underlined that Beijing would not allow "sanctimonious preaching"-- remarks that obviously were aimed at the United States. Many have seen these elements as being a riposte by China to the criticism over alleged human rights abuses.
It may also be noted here that relations between the USA and China have worsened in recent times over trade, espionage and the pandemic. The issue of Taiwan has also become a major source of anxiety. While democratic Taiwan considers itself as a sovereign state, Beijing still views the island as a breakaway province and Xi has on many occasions underlined that China has an "unshakeable commitment" towards unification with Taiwan. This was reiterated once again through his comment that "No one should underestimate the resolve, the will and ability of the Chinese people to defend their national sovereignty and territorial integrity." Added to this awkward equation is the fact that the USA under its own laws is required to provide Taiwan with the means to defend itself should Beijing use force to take Taiwan back.
Mr. Xi while speakng for around an hour, reiterated the role of the Communist Party in modern China, and emphasised that the Party has been central to the country's growth and that attempts to separate it from its 1.4 billion people would "fail". In this regard he also re-affirmed that "only socialism can save China and only socialism with Chinese characteristics can develop China."
In his reference to Hong Kong and Macau, Xi rebutted criticism by underlining that both would retain a "high degree of autonomy". However, at the same time efforts should be made by both of them also to "accurately implement the principles of 'One Country, Two Systems". The CCP to restate Xi's conviction also used the opportunity to end their special programme in Beijing with a song called "Without the Communist Party There Would Be No New China". Unfortunately, some Western electronic media have termed these efforts as a "propaganda campaign".
Nevertheless, there are still many areas where China despite its attempts at proactive engagement with the rest of the world still faces questions. They relate to the subjects associated not only with trade and investment but also development.
These are all reflected in issues linked with Asian Infrastructure Investment Bank, China-Africa Cooperation and the Belt and Road Initiative. One can only hope that differences of opinion remain within the matrix of good governance rather than becoming politicised because of national interest.
Our Prime Minister Sheikh Hasina in her message sent on July 1 to the Chinese Communist Party has justifiably wished them well and hoped for a more fruitful relationship between China and Bangladesh.
Muhammad Zamir, a former Ambassador, is an analyst specialised in foreign affairs, right to information and good governance.
As Karachi received its first spell of monsoon rains on Monday various parts of the metropolis faced power outages as power transmission systems got disrupted.
According to Express, light and heavy rainfall continued intermittently in the port city wherein at least 17 mm of rain had been recorded in Gulshan-e-Hadid, 8 mm in Nooriabad, 5 mm in PAF Faisal, 4.3 mm in University Road, 4 mm in Landhi, 3.6 mm in Saadi Town, 3.2 mm in Jinnah Terminal and 2.8 mm in Surjani Town.
According to the Meteorological Department, it would remain cloudy in Karachi for the next 24 hours, whereas the metropolis is expected to recive drizzle for 48 hours. Spells of heavy rain are also likely to start in Karachi from Tuesday evening.
As is customary in the metropolis during rains, dozens of traffic accidents were also reported. However, no casualties were recorded as of yet.
Read Country ‘ill-prepared’ to deal with monsoon rains
Power outage
Meanwhile, many areas of Karachi faced power outages due to rain. Electricity supply had been suspended for several hours in Surjani Town, Saddar, Old City Area, Baldia Town, Orangi, Korangi, Golimar and other areas.
The power outage affected the Dhabeji pumping station where at least 20 water pumps are used for the city. While the mainline burst again due to back-pressure of water, the repair work on it could not be started due to rain.
Regarding the supply of electricity during rains, the K-Electric spokesperson said that obtaining electricity from illegal sources can cause fatal accidents.
“Citizens should stay away from broken wires, TVs, internet cables, electricity poles and PMTs (Pole-mount transformers),” he added. “Improper use of electrical appliances such as water motors in rain can lead to accidents as well.”
The spokesperson further said that as a precautionary measure, power might be temporarily cut off in some areas during the rains. As soon as the weather improves, electricity would be restored, he added.
Complaints regarding electricity can be made by contacting 118 Call Center, SMS to 8119 or K Electric Social Media Platform, he informed.
'Drainage work underway'
Sindh government spokesperson Barrister Murtaza Wahab said that drainage work was underway in various low lying areas of the city.
He further directed the administration concerned not to allow water to accumulate in any part of the city.
“Water is being drained from busy highways whereas no rainwater has accumulated around the Wazir Mansion in Kharadar. Other development works including sewerage around the mansion were completed a few days ago,” Wahab added.
But for ASX-listed Eclipse Metals, the mineral prospectivity of Greenland has proven to be one its best assets, following its acquisition of the Ivittuut project earlier this year. Ivittuut has near-term production and immense rare-earth potential.
Eclipse Metals' CEO, Carl Popal, said the company is ready to lead the way for other companies looking to turn green and Ivittuut provides that opportunity.
"We are in the mining hub of the world," Popal said. "We need to utilise the history and knowledge that we have as an asset."
As the world's largest and only known source of naturally occurring cryolite, Ivittuut (also known as Ivigtut) in southwest Greenland was last operational in 1987.
Historical exploration included 19,000m of diamond drilling, the core from which is stored in a Greenland government facility for logging and sampling.
Cryolite is a rare mineral known to act as a beneficial fluxing agent to reduce energy consumption in aluminium production. Eclipse Metals believes most of the remaining mineralisation - which includes cryolite, fluorite, siderite, quartz, rare earth minerals and base metals - lies within 90 metres below the bottom of the pit.
For Popal, the Ivittuut project represents huge potential for the company's growth due to the increasing demand for rare earth elements, as well as silica.
"We have a massive body of quartz in Greenland with an exploration target of about 5.8 million tonnes," Popal said. "Existing exploration drilling records show that most of it is of high-grade silica".
With a shortage of silica in the global marketplace, Eclipse is well-placed to utilise its resources in Greenland, especially as demand continues to grow.
Greenland has a long history of mining
"What we have is very competitive and strategically placed," Popal said, noting that being geographically close to the factories in Iceland and the European market means "the company is well-placed to supply Europe".
The acquisition of Ivittuut in January this year is only the latest venture for a company that has paved its own path in green energy during a tumultuous decade.
While most countries pulled away from nuclear power generation following the Fukushima accident in 2011, Eclipse stuck with its uranium assets. Popal said it was a difficult time for uranium exploration companies as the market experienced a severe downturn, but there was never any desire for Eclipse to step away from the industry.
"They were the worst years for exploration companies and many companies were dropping off the books," Popal said. However, he believes climate awareness has had a positive impact on the industry as nuclear power is yet again being recognised as a reliable and low-cost source of power generation with low emissions.
"We knew, looking forward 10 to 20 years, we always knew it would come back and we would just have to hang on," he added.
With 19 mineral tenements covering more than 9,000sq km, Eclipse Metals has made its mark on the Australian landscape. In the Northern Territory, Eclipse holds five exploration licences that are highly prospective for uranium, vanadium, palladium, platinum, and gold within West Arnhem (Alligator Rivers' uranium fields). Set near the world-class Ranger, Nabarlek and Jabiluka uranium deposits, the project areas are prospective for unconformity-style uranium deposits.
This area includes the Devil's Elbow Project which has already yielded high-grade surface uranium, gold and palladium assays, and was previously explored by Cameco Australia from 2001 to 2007. Eclipse believes there is more potential for Coronation Hill-style gold, palladium, and platinum deposits within the company's tenements.
Eclipse also holds an area of 7,500 sq km in the Northern Territory, which is considered prospective for sandstone paleochannel-style uranium mineralisation. The Ngalia Basin project tenements lie 300km west-northwest from Alice Springs and cover several strong radiometric and base metal targets.
Australia is the third-largest producer of uranium in the world, after Kazakhstan and Canada. With no nuclear power in Australia, the country exports its entire production, mainly to the US.
However, there was little incentive in recent years to purchase Australian uranium due to the heavy downturn in market prices as many countries began to retire their nuclear fleets. Meanwhile, Kazakhstan had ramped up production to provide up to 40% of global supply.
"Australia and Canada could not produce at those uncompetitive prices," Popal said. "But because of geopolitical changes, there is room for Australia and Canada to come back."
The world looks very different in 2021 compared with 2011. As we move further away from the Fukushima incident, more attention is turning to cleaner energy sources. Demand also continues to ramp up as the world population continues to grow. In addition, newer and more affordable technology is seeing electricity consumption increase more than ever before.
"The global geopolitical situation is very fluid," Popal said. "It's difficult to predict how it will switch, so we're just focusing on understanding the problem."
Nuclear power generation is seen as part of the clean energy solution to meeting ever-growing demand with several reactors currently under construction or in the planning phases around the world, which is further adding pressure on supply.
"The pendulum is shifting," Popal said, adding that the company has seen the direction the world is going and is proud to be at the forefront of the green energy movement.
In addition to providing uranium exploration to power the growing world around us, Eclipse is exploring battery metals in Queensland, Australia, with its Amamoor manganese project.
Manganese has sparked immense interest in recent years as a battery metal resource. Australia is the third-largest producer of manganese, following South Africa and China.
Eclipse holds 35sq km of manganese exploration terrain near Gympie in southeast Queensland. The Amamoor manganese project in the Mary Valley district lies within a site accessible by local sealed roads and existing forestry tracks.
"Batteries are important because we need to look at how to store the energy," Popal said, before adding, "Power to the grid also needs to be considered for supplying the energy."
China will always remain the builder of world peace, a contributor to global development, and upholder of international order. Xi Jinping
In order to provide an overview for busy in-house counsel and compliance professionals, we summarize below some of the most important international anti-corruption developments from the past month, with links to primary resources. This month we ask: What recent action did President Biden take to signal U.S. commitment to international anti-corruption enforcement? What was the first corporate Foreign Corrupt Practices Act (FCPA) resolution of 2021? What was the OECD’s assessment of Turkey’s foreign bribery enforcement record? The answers to these questions and more are here in our June 2021 Top 10 list.
1. President Biden Issues Memorandum Prioritizing Anti-Corruption Enforcement.
On June 3, 2021, President Biden issued a National Security Study Memorandum establishing the fight against corruption as a core national security interest. The memorandum signals the Biden administration’s commitment to leading international efforts to combat global corruption, which President Biden said “eats away at the foundations of democratic societies.” Key provisions of the memorandum include a directive that several government agencies, including the U.S. Department of Justice (DOJ), National Security Agency (NSA), and Department of State, must engage in an interagency review to develop and recommend an anti-corruption strategy within 200 days. According to the Fact Sheet released with the memorandum, the strategy should focus on (1) modernizing, coordinating, and resourcing efforts to better fight corruption, (2) curbing illicit financing, (3) holding corrupt actors accountable, (4) building international partnerships, and (5) improving foreign assistance. Although the memorandum does not cite specific statutes, several of its strategic priorities are consistent with DOJ’s current FCPA and kleptocracy enforcement strategies, as well as the United States’ work with multilateral institutions such as the OECD Working Group on Bribery, and could lead to increased resources and enforcement. The memorandum further highlights the Biden administration’s focus on combatting global corruption and comes less than a month after the president issued a long-awaited and far-reaching executive order (E.O.) targeting Russian malfeasance, including election interference, cyber-enabled activities, and corruption. (For more on the E.O., see our article here.)
2. UK Engineering Company Resolves First FCPA Enforcement Action of 2021 with Global Settlement of Charges for Brazilian Bribery Scheme.
On June 25, 2021, John Wood Group PLC (“Wood”) announced that Amec Foster Wheeler Energy Limited (AFWEL), a subsidiary of Wood that it had acquired in 2017, had reached a $177 million global settlement with DOJ, the U.S. Securities and Exchange Commission (SEC), the UK Serious Fraud Office (SFO), and Brazilian authorities to resolve respective bribery and corruption investigations into AFWEL. AFWEL admitted (1) its involvement in a bribery scheme to obtain a $190 million Brazilian oil and gas design contract from Petrobras and (2) its use of corrupt third parties, including an Italian sales agent affiliated with a Monaco-based intermediary company, to pay bribes to decision-makers at Petrobras. AFWEL agreed to enter into a three-year deferred prosecution agreement (U.S. DPA) with DOJ, filed in the Eastern District of New York, pursuant to which AFWEL agreed to pay $18.375 million for conspiring to violate the FCPA’s anti-bribery provisions, to be offset by approximately $10.7 million in payments to UK and Brazilian authorities. AFWEL also consented to an SEC cease-and-desist order, which requires the company to pay $22.7 million in disgorgement and prejudgment interest, to be offset by approximately $12.6 million in total disgorgement paid to UK and Brazilian authorities. AFWEL also entered into a DPA with the SFO (UK DPA). Under the terms of the UK DPA, AFWEL will pay a total of £103 million for the use of third-party agents for bribery and corruption in five countries. In addition, Wood entered into 18-month leniency agreements with three Brazilian authorities, the Ministerio Público Federal (MPF), Comptroller General’s Office (CGU), and the Solicitor General (AGU).
3. Colombia’s National Airline Discloses SEC Declination.
In a June 2, 2021 securities filing, Avianca Holdings S.A. disclosed that SEC had notified the company that it had closed its investigation into alleged irregular grants of free and discounted airline tickets and upgrades to various countries’ government employees. The company previously announced in an August 15, 2019 securities filing that it had commenced an internal investigation and voluntarily disclosed the investigation to SEC and DOJ.
4. Singapore-Based Oil Rig Builder Concludes Deferred Prosecution Agreement.
On June 23, 2021, a judge in the Eastern District of New York granted DOJ’s unopposed motion to dismiss FCPA charges against Keppel Offshore & Marine Ltd.[1] In December 2017, the company entered into a DPA with DOJ to resolve allegations that it and its U.S. subsidiary had paid over $55 million in bribes to Brazilian officials to win contracts with Petrobras, Brazil’s national oil company, and another Brazilian entity. In moving for dismissal, DOJ informed the court that the company had fully met its obligations under the DPA, including providing full cooperation, implementing an enhanced compliance program, satisfying its self-reporting requirements, and timely paying its approximately $105 million monetary penalty.
5. Former Financial Services Executive Settles SEC’s Ghana Bribery Case.
On June 23, 2021, SEC announced that it had obtained a final judgment against Asante Berko, a former executive at the London subsidiary of a New York-based financial services company. In April 2020, SEC announced that it had filed a complaint against Berko in the Eastern District of New York, alleging that he participated in a scheme to pay at least $2.5 million in bribes to Ghanaian government officials to help his company’s client, a Turkish energy company, win approval for a power plant project in the Republic of Ghana, in violation of the FCPA. Berko resolved the case without admitting or denying the SEC’s charges and disgorged $275,000 and paid approximately $54,000 in prejudgment interest.
6. UK Serious Fraud Office Secures Confiscation Order From Former Unaoil Executive.
On June 17, 2021, the UK SFO announced that it had secured a £402,465.65 confiscation order by consent against Basil Al Jarah, a former Unaoil executive. Al Jarah was sentenced to three years and four months’ imprisonment in October 2020, following his July 2019 guilty plea to five counts of conspiracy to make corrupt payments. The SFO alleged that Al Jarah and others paid over $17 million in bribes to public officials in Iraq to secure $1.7 billion worth of oil and offshore construction contracts. The court found that Al Jarah made over £3.3 million as a result of the bribery scheme and required him to pay the confiscation amount within three months, or face a further three years in prison. In July 2020, Al Jarah’s co-defendants, Ziad Akle and Stephen Whiteley, were convicted by a jury on related charges.
7. World Bank Debars China-Based Hydro Construction Company.
On June 16, 2021, the World Bank announced a two-year debarment of Zhejiang First Hydro & Power Construction Group Co. in connection with allegedly fraudulent and corrupt practices under the Guangzi Laibin Water Environment Project in China, designed to reduce flood risks and improve drainage in Laibin city. According to the World Bank, the company’s agent and subcontractor paid bribes to two government officials in exchange for a contract. The World Bank stated that the company’s reduced period of debarment with conditional release was a result of its extraordinary cooperation and voluntary remedial actions. The company is subject to cross-debarment by other multilateral development banks (MDBs) under the 2010 Agreement for Mutual Enforcement of Debarment Decisions.
8. Brazilian President Linked to Allegations of COVID-19 Vaccine Corruption.
In June 2020, allegations surfaced linking Brazil’s president, Jair Bolsonaro, to corruption in the country’s efforts to secure COVID-19 vaccines. Brazil’s Senate is reportedly investigating alleged irregularities in the Brazilian Health Ministry’s contract to purchase 20 million doses of a COVID-19 vaccine from an Indian vaccine manufacturer. Bolsonaro also reportedly fired the head of the Health Ministry’s logistics department in June 2020 for allegedly asking a U.S.-based vaccine distributor to inflate the prices of COVID-19 vaccine doses by $1 each in order to create a mark-up that could be siphoned off. Many international corruption watchdogs have warned about the possibility of COVID-19 related corruption (see, for example, the OECD Working Group on Bribery’s April 2020 warning), and this is not the first time that a Brazilian official has been accused of diverting public funds intended to fight the coronavirus. (See, for example, the October 2020 reports of a Brazilian senator caught during a police investigation hiding public funds in an unusually private location.) Nevertheless, given Bolsonaro’s high profile and the frequent corruption prosecutions of Brazilian presidents and ex-presidents (see, for example, our most recent coverage of the prosecutions of former president Luis Inácio Lula da Silva), these reports are worth monitoring.
9. OECD Urges Turkey to Increase Foreign Bribery Enforcement.
On June 29, 2021, the OECD Working Group on Bribery urged Turkey to implement key reforms to increase its fight against foreign bribery. According to the Working Group, Turkey has a very low level of enforcement of its foreign bribery offense, having failed to ever successfully conclude a foreign bribery case. The Working Group also expressed concerns that Turkey has failed to take sufficient steps to protect the independence of prosecutions, strengthen corporate liability legislation, and protect whistleblowers. The OECD’s announcement followed meetings between Turkey and a High-Level Mission of the Working Group, led by the Working Group Chair and including delegates from Colombia, Germany, New Zealand, Russia, Sweden, and the United States.
10. First-Ever United Nations General Assembly Special Session Focuses on Corruption.
On June 2-4, 2021, the United Nations General Assembly held a special session to address challenges and measures to prevent and combat corruption, and strengthen international cooperation. The three-day special session consisted of plenary meetings to allow governments and the international community to discuss the advancement of the global fight against corruption, identifying the threat to the stability and security of societies and the impact on economic growth. A key development from the session was the adoption of a political declaration titled “Our common commitment to effectively addressing challenges and implementing measures to prevent and combat corruption and strengthen international cooperation” by heads of state and government, ministers and representatives of Member States, and parties to the UN Convention against Corruption. Reaffirming their commitment to tackle bribery, money-laundering and other related crimes, the parties pledged to increase efforts aimed at strengthening preventive measures that reach all levels of society and economic sectors, as well as increasing transparency and accountability in the management of public finances and government procurement, including public-private partnerships. Furthermore, the parties reiterated their commitment to criminalizing, investigating, and prosecuting acts of corruption and related offences. Separately, on June 17, 2021, the United Nations Global Compact, a United Nations initiative, published a report titled “Uniting against Corruption: A Playbook on Anti-Corruption Collective Action” designed to help companies work with others to fight corruption. Through a six-step approach, the playbook is designed to enable companies to diagnose their local corruption landscape, identify and engage stakeholders, and apply the “Collective Action methodology” to address identified corruption challenges and to mitigate potential business risks.
Stephanie Pong, a trainee solicitor in our London office, contributed to the writing of this alert.
[1] United States v. Keppel Offshore & Marine Ltd., 17-cr-00697-KAM, ECF No. 13 (E.D.N.Y. June 23, 2021).
[View source.]
We would like to invite our readers to Independent Research Forum's upcoming Commodities Conference where Mark will be one of the speakers. The conference is on Tuesday 20th July between 14.00 - 16.00 BST. Mark will be presenting from 15.15 and will be dicussing ESG and Supply chains.
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The stock market has been conventionally viewed as a leading indicator or predictor of future economic activity. Stock price indices are expected to reflect market participants' rational information expectations of discounted future earnings attributable to investment effect, wealth effect, and consumption effect.
However, the quick run-up in Indian equities in recent months tends to raise concerns over the rational information expectations of market participants. Since their March 2020 low (Sensex: 25981.24, Nifty: 7610.25), the benchmark market indices of BSE Sensex (52,386.19) and Nifty 50 (15,689.80) witnessed more than 100% growth.
This trend is alarming enough as the country has grappled with the worst health crisis ever with lower growth forecasts and Indian equities have climbed to record levels.
Also Read: Infosys share hits record high after firm raises revenue guidance for FY22
Even though the Reserve Bank of India (RBI) has lowered the gross domestic product (GDP) growth projections for FY22 to 9.5 from the earlier forecast of 10.5% due to the COVID-19 second wave, there is no sign of change in the upward trajectory of benchmark indices.
The dramatic increase in the second wave of COVID-19 infections since February 2021 has brought the Indian economy to a near standstill, and further weakened its nascent recovery.
International rating agencies like JP Morgan, Moody's, and Barclays have also placed their GDP growth projections for India for FY22 below 10%. Amidst the recent bull run with strong recovery expectations, while informally, the common question among investment professionals these days is whether the Indian equity market is overvalued.
On the sidelines of all the good news about the market movement, the magnitude of gains in the benchmark equity indices perhaps indicates a bull trap in an overvalued market.
One of the reasons for such a recent bull run in the Indian equity market may be 'Herding Behavior'. Typically, investors' herd behavior can be characterised by the irrational tendency of individuals to follow others and imitate group behaviors even if their private information suggests something different.
Investors' propensity to herd in a financial market can be expressed in various forms such as trading in the same direction as others, following past price trends, momentum investing or positive-feedback strategies, and imitating others' behavior.
Also Read: Stocks in news: Infosys, Marico, Maruti Suzuki, TCS and more
One of the commonly used approaches to quantify the same is through the Cross-Sectional Absolute Deviation (CSAD), which is a mathematical equation that explains the extent to which stock returns are converging towards market returns.
The lower the value of this measure, i.e., less dispersion, the higher the degree of herd behavior in the market, and vice-versa. Figure 1 presents the time series CSAD of NSE Nifty and BSE Sensex over January 2020 to July 2021.
The values suggest that in March 2020, during the first wave of COVID-19, the CSAD measures of Sensex and Nifty were at an all-time high, 2.20 and 2.15, respectively.
Incidentally, this period coincides with the downward trend in benchmark market indices. Through the early stage of COVID-19 spread, the Sensex and Nifty tanked close to 40% from the level of 42,000 and 12,000, respectively.
However, since the beginning of 2021, when Sensex and Nifty recorded their best performances and surged to 52488 and 15722, respectively, CSAD is at an all-time low (0.23 and 0.28, respectively). Moreover, there is a continuing divergence between CSAD and benchmark market indices since June 2020 which resounds the bull-run period of Indian equities.
As mentioned, behavioral finance theories suggest that investors tend to echo other investors' actions by ignoring their private information due to herding phenomena.
One may argue that it takes time for market participants to assimilate and act on new information thoroughly, and thus, market prices fully reflect further information only over time.
However, investors can observe each other's actions but not the private information or signals that each market player receives. Economic theory suggests that even in such a scenario, the information contained in the decisions made by others makes each person's decision less responsive to her input and hence less informative to others.
This can generate instability in equity markets, lead to speculative episodes of bull runs and add to volatility.
The Reasons
Sentiment Effect: One of the reasons for such high herding in the Indian stock market could be the investors' collective cognitive bias called the sentient effect.
Figure 2 presents the movement of NSE VIX or volatility index with the benchmark market indices. VIX, or the investor fear gauge or market uncertainty measure reflects pessimism (optimism) with an upward (downward) trend.
VIX index appears to be at its all-time low (13.36) since its peak of 83.61 in March 2020. A lower VIX (below 20 levels) with CSAD measures moving concurrently indicates that the bulls may have the upper hand in the market with persistent herding.
Even if India's real GDP shrank by a record 7.3% in FY21, India's total market capitalisation as a percentage of GDP achieved an all-time high of 115% during June 2021.
It stands close to its all-time high valuations of 150% during the 2008 market crash. Such high valuations amid the contraction of real GDP due to pandemic uncertainties are inconsistent with fundamental valuations and rational expectations.
Herding behavior is more prominent under circumstances of elevated uncertainty. In such a market scenario to reduce their risk exposure and minimise market uncertainty, investors prefer to join the crowd.
Greater sentiment-driven traders in the market during high sentiment periods tend to undermine an otherwise positive mean-variance trade-off. Since investors value gains and losses differently due to cognitive bias, investor risk aversion increases during a pessimistic market environment.
Positive (negative) sentiment reduces (increases) risk aversion. Herding is expected to be more evident when the VIX decreases. Since sentiment traders undermine the mean-variance relation during the optimistic period, macroeconomic variables containing business cycle information have far less ability than investor sentiment to distinguish the high and low mean-variance tradeoff regimes.
This is perhaps the reason why everyone is concerned with the severe collapse in projected growth recovery amid the second wave, and domestic equities are still upswing. When risk aversion is low (optimism is high), investors are more likely to extrapolate recent good news (price trends) and ignore future bad news. Thus, investor herding inequities may be a result of an irrational but systematic response to investor sentiment.
Household Wealth Effect: RBI data shows that the household financial savings are estimated to have increased sharply during 2020-21. According to the data, in the fortnight ending June 18, the currency with the public further increased to hit a new high of Rs 28 lakh crore.
The demand for deposits with banks declined from close to 20 lakh crore to 18 lakh crore. The significant increase in household financial assets and moderation in household financial liabilities led to a rise in household financial savings in Q1:2020-21, and a substantial part of it was directed towards Mutual Funds.
As per the Association of Mutual Funds in India (AMFI) newsletter, funds mobilised (INR in crore) for June 2021 amount to Rs 10,25,98,906 as compared to Rs 6,47,286.77 for January 2021.
Further, NSDL reports that Indian investors have opened a record 14.2 million new Demat accounts in FY21 (4.9 million in the FY20, and the three-year average is 4.5 million). Data released from NSE indicates that individual investors' trading accounts for 45% in 2021.
A recent report by the foreign brokerage firm UBS notes, "Overall when we combine household equity savings through mutual funds and direct share purchase, we see that households are a material force to be reckoned with overall 25 % higher than foreign portfolio investment net inflows".
Apart from retail investors, Foreign Institutional Investors (FIIs) in fiscal 2020-21 invested more than Rs 2.75 lakh crore in the Indian stock markets, the highest in the last two decades. However, despite FII'S selling pressure in April and May, the stock market continued its northward movement due to retail buying directly and via mutual funds.
Investors should thus be careful while betting big on such an overvalued market. Such overvalued equity market phenomena due to the herding effect is a significant factual issue because of the apparent negative wealth effect on individual investors' portfolios and the aggregate market instability risk.
Persistent bull-run due to herding and systematic mispricing in the market could result in substantial resource misallocation in the economy and compound financial woes.
In the current state of the economy with a booming market, if aggregate wealth fluctuations can be very large relative to household income, consumer spending, and GDP forecast, the potential impact of the negative wealth effect in the event of a market crash could be devastating.
(Prof. Saumya Ranjan Dash, Faculty, IIM Indore & FPM Participant Garima Goel on Indian Stock Market.)
Namibia is currently witnessing what could become one of the most spectacular explorational oil plays in recent memory, and one Canadian driller is at the center of this brand-new, potential blue-sky opportunity.
Reconnaissance Energy Africa (TSXV:RECO, OTC:RECAF) is in the process of attempting to de-risk the potentially huge Kavango basin. Following the encouraging results of their first two test wells, the company is now analyzing the data to determine the size and commercial potential of the basin.
With the exploration efforts in Namibia advancing quickly, Oilprice.com founder James Stafford sat down with one of RECO’s leading geologists Dr. Jim Granath to find out more about the producibility and commercial potential of the encountered hydrocarbon system in RECO’s Kavango basin.
In This interview with Jim we look at the following:
- Why the stratigraphic wells were a huge success
- How the hydrocarbons are stacked in columns from 15 to over 110 meters in height
- The oil and gas they are seeing are far more than normal shows
- The type of oil they are seeing in the wells
- How the geology is similar to the Zagros belt in the Middle East
- Why this is a conventional play
James Stafford: Well, I have to start off with the latest drilling update from ReconAfrica. I know these are only intermediate results and there is a lot more to come from these wells in the near future, but could you talk through for our readers what it all means and what you think you have here?
Jim Granath: We have almost completed the second well now. As you know there are multiple shows of multiple fluids, that is both oils and gases—and I use the plural intentionally. The two wells are comparable in that the distribution of the shows run up and down the stratigraphy, and they are more extensive than ‘normal shows.’ What is clearly evident is that this is decidedly a conventional play—the hydrocarbons are in rocks into which they have migrated. One gigantic issue is behind us now: our main reason for drilling stratigraphic wells as opposed to targeted wildcats has been spectacularly fulfilled—there is a petroleum system. We have eliminated this particular so-called geologic risk, which is to say the basin is worthy of exploration.
Story continues
JS: You were one of the geoscientists responsible for the play concept that has led to this exploration program, one of the first people to review the aeromagnetic survey. How do you think such a potentially huge oil field went undiscovered for so long?
JG: We have yet to find out how huge this is in terms of potential—we will eventually see, but it’s encouraging that the two wells are so similar and yet 16 km apart. Back in 2014, the founder Craig Steinke asked some of us to review various information to recommend a play to pursue, and I suggested the Karoo system in southern Africa was an under-appreciated play: he went on to put Karoo and Namibia together and followed through with the licensing of Petroleum Exploration Licence 73 in the Kavango region. When Earthfield produced a model of the shape of the basin from aeromagnetic data that Craig purchased from NAMCOR, I realized we had something different from the conventional viewpoint on the Owambo Basin. For various technical reasons it became apparent that the depth of that model should not be where it is—the Owambo should start to die out west of PEL 73; it should pinch out where Earthfield’s model became deep. The depth of Earthfield’s model was striking—something never previously suspected under Kavango, and thus suggested a new basin that was separate and distinct from Owambo in terms of its geologic raison d’etre. Since this was all hidden under the famous Kalahari sands, the Kavango Basin as a petroleum target remained a sleeper until we put the geophysical model together with the regional geology.
JS: What is it that excites you about the Kavango? Why were you and the Recon team so confident that the ground held oil?
JG: The exciting part for me is the new insights into a neglected geological province. But beyond the ‘science’ of it, the work I just described set up a new, blue-sky play: in my opinion exploration is all about exploiting new insights rather than following the herd. And this is possible only in a very few places in the world these days. As Bill Cathey commented early on, in his experience, all basins of this depth hold commercial levels of hydrocarbons. We really had to find out more about what was under that Kalahari cover to make the next step. To join forces with the rest of what has become the Recon team to take that next step has been really exciting.
JS: The latest release says the following: Based on initial analysis of this first section, ReconAfrica is pleased to report 134m (440 feet) of light oil and gas shows from the 6-1 well. The shows are similar in character to those seen in the 6-2 well, 16 km to the south. This second well (6-1), like the first well (6-2), is in the same sub-basin, shows clear evidence of a working conventional petroleum system. What do you mean by light oil and gas shows? Can this oil be produced?
JG: Crude oil comes in a wide spectrum of forms depending on the source it’s derived from, the temperature of its creation, and its subsequent history, etc. Think of a turkey at Thanksgiving—the turkey is organic matter in sedimentary rocks, immature as we call it before burial and heating up. As it cooks it gives off aromas (gasses) and juice in the pan (oils, liquids)—together they are called fluids. As the turkey cooks it gives off more and more fluids—the good stuff that grandma makes delicious gravy out of. Then if you overcook it, the turkey burns and the liquid boils off to turn to the crusty undesirable crud that makes the pan hard to clean, and the turkey itself becomes dry and unsavory. Organic matter in source rocks goes through a similar progression, except that early in the ‘cooking’ history a tarry sludge comes off—this is heavy oil like the tar sands in Canada, Venezuelan oil, or even the California oils. These are called immature oils. As the system cooks further the oils get lighter and move more toward what gasoline or motor oil look like, lighter in color and less viscous---their index goes up in what’s called API—these are mature oils in the sweet spot of the spectrum. This is the kind of stuff we have in the wells.
But producibility of the oil also depends on the rocks they are in. Thinking of the reservoir rocks like a sponge to which the hydrocarbons have migrated, producibility depends on how much space is available to host the hydrocarbons (the porosity) and how connected that space is to get the oil and gas to move to the well bore (the permeability). Even the best reservoirs only give up a fraction of their oil in human time frames. In the North Sea, for example, recoverability as it’s called is about 40-50% of the fluid. That’s on the good end of the spectrum—more typical is 25%-- lower-end reservoirs might only be a few percent. We have to find these things out before we can say anything about the amount of hydrocarbon that can be recovered. So producibility is one of the questions we will be looking to answer when we can do what’s called a drill stem test in the wells precisely on the position of the better shows. This is an attempt to get the fluids to flow into the wellbore.
https://finance.yahoo.com/news/world-most-exciting-oil-play-233000999.html
Crude oil’s effectiveness as a gauge of economic growth was once again on display during the pandemic. Last March, as the scale of the pandemic was first revealed, Brent oil futures plunged to $22. But with the large stimulus roll-out and gradual recovery in growth, prices too moved higher to $55.
The price of crude oil has, however, been on the boil over the last few weeks, with Brent futures reaching a high of $75 on July 6, recording year-to-date gain of 36 per cent. Indian consumers have also been facing the heat with the retail selling price of petrol hitting ₹100 in all the metros this month.
Speculators and investors seem to have a hand in driving this frenzy. This is evident in the extremely rosy projections of brokerages.
Goldman Sachs expects Brent prices to average above $80 in the third quarter of this calendar year with spikes above that price; JP Morgan expects crude to break above $80 in the last quarter of 2021 and Bank of America projects Brent prices to hit $100 by next summer.
With far-reaching impact of rising oil prices on the economy and consumer budgets, the moot question is, will the rally in crude oil sustain and what is likely to be medium-term price range? The answer lies in the demand-supply equation of crude oil.
Demand-supply equation
Global demand for oil declined from 99.7 million barrels per day (mb/d) in 2019 to 91 mb/d in 2020 as the Covid-19 pandemic dealt a sharp blow. Travel and mobility were among the worst affected by the lockdowns, constricting petroleum consumption. With crude oil prices crashing, supplies were reduced in the second quarter, by both OPEC and non-OPEC producers.
The sharp rally in petroleum price in 2021 is due to two primary factors. One, the virus seems to have been contained quite effectively since the beginning of this year, especially in the OECD countries which account for around 47 per cent of demand. The fast pace of vaccination has helped revive economic activity in these countries, leading to expectation of good demand for petroleum products. The IEA, in its June report, expects global oil demand to return to pre-pandemic levels by the end of 2022, rising 5.4 mb/d in 2021 and a further 3.1 mb/d in 2022.
Two, while demand is expected to revive, there are concerns over supply due to the ongoing stalemate between the UAE and the OPEC countries. According to the IEA, oil output from non-OPEC plus countries is set to rise by 710 kb/d in 2021. Given the projected demand of 96.4 mb/d in 2021, there could be an output gap this year, unless OPEC countries come to an agreement on increasing output.
The wrangle in the OPEC
In 2020, OPEC plus countries agreed to reduce output by 10 mb/d from May 2020 to end of April 2022, to contain the price decline caused by falling demand. Now, with global demand reviving, Saudi Arabia has proposed that OPEC increase production by 2 mb/d between August 2021 to December 2021, but extend rest of the cuts until the end of 2022. But the UAE wants the production cuts to extend until end of 2022 only if the baseline for output is revised. OPEC members’ productions are linked to the baseline and this was to be revised at the end of the current production cut agreement, which was April 2022. Extending the cuts until end of next year would result in the UAE not being able to pump more oil, thus leading to under-utilisation of its production capacity.
The positive is that the UAE has said that it is willing to pump as much oil as required to meet global demand, if it’s condition is met. The OPEC plus members have spare capacity of 6.9 mb/d, even after the increase in production, so far this year. So increasing the oil supply is just an agreement away. Saudi Arabia is concerned about flooding the market with excess supply, thus making prices crash. Once a middle-ground is found, output from OPEC plus is likely to increase.
The other wild card in the equation is Iran. While the new leader has created uncertainty on the time-line for lifting the sanctions, another 1.4 mb/d could enter the market from Iran, once sanctions are lifted. Of the non-OPEC countries, the US is expected to add 900 kb/d by 2022 with Canada, Brazil and Norway also contributing to the increase next year.
While the supply situation is not unsalvageable, demand projections may need downward revision if the third wave or new variants of the virus cause further disruptions in global recovery. Also, the recovery is limited to advanced economies with most developing and under-developed nations yet to progress materially in vaccination. Global travel cannot revive under these conditions.
Price outlook
Given the uncertainty in demand caused by the ongoing pandemic and the capability of producers to increase output, there is unlikely to be a runaway rally towards $100 as yet. That said, oil-producing countries will be careful enough to maintain the balance in output so that prices do not crash either.
This is likely to keep prices in the $50 to $80 range over medium term. The other solace is that there is no great geopolitical crisis brewing currently. If we see the movement of crude prices since 1950s (see accompanying chart), sharp spikes in prices were mostly accompanied by geopolitical tensions or other factors leading to shortage in supply. This time around, since there is no dearth in supply, sustained rally may be unlikely.
Impact on India
The Indian economy has been able to cope with crude oil prices moving in the $50 to $70 range since 2014. It’s only when prices spike materially beyond $70 that some negative ramifications are seen. The larger impact is on trade deficit. India is a net crude oil importer, depending on imported oil to meet over 77 per cent of domestic demand. The share of petroleum products in India’s imports is over 25 per cent in normal times.
Therefore, the surge in crude oil price tends to inflate the import bill, widening the trade deficit. This tends to impact the rupee’s movement. As the accompanying chart shows, the rupee has depreciated against the dollar in periods of oil price surge. The same trend is playing out over the past year as increasing oil prices is making the rupee weak. With fuel and light having a significant weight in the CPI basket, the surge in crude oil prices tends to make the CPI spike higher as well. This is being witnessed in recent months.
However, once global crude oil supply is ramped up, both rupee and the CPI could get some relief.
British households are paying the bill for new nuclear power plants
It is reported that households’ energy bills will soon be increased to pay for the construction of new nuclear power plants in the UK.
Ministers are in the process of drafting laws that will allow construction of the new $ 20 billion.
In essence, the RAB model, which is already used in the UK for large infrastructure projects such as Thames Tideway, would allow builders to charge the energy of the facility to subsequent users during the construction phase.
The logic goes by using such a surcharge, which would be set at an agreed level, would make it easier for the project to attract more investors to the project.
The government launched a consultation on the funding method back in 2019. Today the Ministry of Economy, Energy and Industrial Strategy (BEIS) announced that it is still evaluating the RAB model.
The planned new facility in Sizewell will have a power generation capacity of 3.2 gigawatts, enough to supply more than six million households with electricity for six decades.
The report comes amid growing concerns about the future of the UK nuclear fleet, with all but one of the existing reactors slated to close by 2030.
Only one new facility is under construction so far, Hinkley Point C in Somerset, leading to MPs calling for the government to commit to 10 gigawatts of new nuclear power by 2030.
Related: Russia is ready to open the taps
This is in line with the recommendations of the government’s climate adviser, the Committee on Climate Change (CCC).
A BEIS spokesperson said: “New nuclear energy will play a vital role in this government’s plans to achieve a safe, low-carbon, affordable energy future.
“As noted in our recent consultation, the government continues to examine a regulated asset financing model (RAB) with nuclear project developers and believes it remains a credible option with the potential to secure private investment and reduce costs for consumers Long-term energy costs.
The story goes on
“We will continue to evaluate the RAB, along with other delivery models, and have always been clear that every new nuclear project must offer consumers and taxpayers good value for money.”
By city AM
More top readings from Oileli:
Read this article on OilPrice.com
Total US Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 479 for the week through Jul 9,higher than the prior-week count of 475. Thus, the tally has increased consecutively in the past two weeks, thanks to massively improving oil price. Also, the count is the highest since April 2020. Notably, the current national rig count is higher than the year-ago level of 258.
The number of onshore rigs for the week ended Jul 9 totaled 461, higher than the prior-week count of 459. Notably, in offshore resources, 17 rigs were operating, higher than the prior-week count of 14.
US Oil Rig Count Increases: Oil rig count was 378 for the week ended Jul 9, higher than the prior-week count of 376. Investors should also note that the current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is also higher than the year-ago figure of 181.
Natural Gas Rig Count Rises in US: Natural gas rig count of 101 increased from the prior-week count of 99. Moreover, the count of rigs exploring the commodity was higher than the prior-year week’s 75. Per the latest report, the number of natural gas-directed rigs is almost 94% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units, lower than the prior-week count of 16. However, horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 464 compared favorably with the prior-week level of 459.
GEORGETOWN, July 12 (Reuters) - Guyana is re-launching a search for a company to market the government's share of crude oil produced off the South American country's coast to make the tender process "simpler and more competitive," the natural resources minister said on Monday.
According to the notice published late last week, companies will have until Aug. 3 to submit their bids to "competitively market and maximize the value" of the government's allotment and to "create a competitive market" for Liza crude produced by a consortium led by Exxon Mobil Corp.
The re-launch comes after President Irfaan Ali's government discarded a previous tender it issued in August 2020, which received 29 bids. But the government said in February it was forced to disqualify 28 of those companies, blaming criteria set by the prior administration.
"It's basically to level the playing field," Natural Resources Minister Vickram Bharrat told Reuters, adding that the previous criteria disqualified experienced companies such as Hess Corp and Royal Dutch Shell, both of which have marketed some of the government's crude cargoes.
Bharrat added that with the new tender, the government was seeking to "bring more revenue or benefits to Guyana."
The Exxon-led consortium, which also includes Hess Corp and China's CNOOC Ltd, has discovered more than 8 billion barrels of oil and gas off Guyana's coast, transforming the poor country into the world's newest energy hotspot.
The government is contractually entitled to a portion of the crude produced by Exxon, but with no state oil company nor domestic refining capacity, the government relies on external firms to market its share of the oil.
(Reporting by Neil Marks Writing by Luc Cohen Editing by Marguerita Choy)
(Bloomberg) -- Oil’s rally fizzled as a build in U.S. fuel inventories and a potential OPEC+ agreement to increase supply cooled a buying spree that had pushed the market above $75.
Futures fell as much as 4% in New York on Wednesday. Both gasoline and distillate inventories rose last week, according to a U.S. government report. Meanwhile, Saudi Arabia and the United Arab Emirates were said to resolve the standoff that has prevented OPEC+ from satisfying growing demand for extra barrels. Technical indicators also showed crude close to overbought territory earlier Wednesday, which signals oil may be due for a pullback.
With the prospect of more supply from OPEC+ and crude nearing overbought levels, “it’s not surprising to see it down,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors LLC.
Economic recovery in countries like the U.S. and China has increased fuel consumption over the course of this year, propelling oil prices forward by more than 50%. Rising demand, especially during the peak summer travel season in the U.S., drew warnings about a deepening supply deficit after OPEC+ talks on a production hike broke down earlier this month.
The latest breakthrough proposal involves a higher output quota for the UAE, which said OPEC+ talks are ongoing. It would need to be approved by all OPEC+ members before it can take effect.
If the compromise is ratified at a new meeting, it could open the way to higher output, although some members have already locked in most of their supply volumes for August. The 23-nation coalition is aiming to restore supplies in installments of 400,000 barrels a day through to late 2022.
“So far it’s been proven that the OPEC+ agreement has been effective at stabilizing oil prices,” said Rob Thummel, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets.
The impasse introduced volatility in the market over the last week while near-term supply remained in question. In addition to gasoline, a boom in durable goods is driving demand for naphtha to make plastics as well as diesel to power deliveries.
Story continues
Domestic crude supplies tumbled for the eighth straight week, according to the weekly report. Inventories at the nation’s largest storage hub in Cushing, Oklahoma, fell by 1.6 million barrels.
Still, the ongoing spread of the delta variant casts a shadow on the demand outlook for oil. Daily cases in Indonesia surpassed those in India, and Australia’s most populous city, Sydney, extended a lockdown for two more weeks. Cases in Malaysia and South Korea reached record highs.
“Trouble is brewing for the oil market,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. “Fears are mounting that rising Covid-19 Delta cases could delay a full economic recovery. This, in turn, poses a significant threat to oil demand growth in the near-to-medium-term.”
https://finance.yahoo.com/news/oil-dips-hitting-2018-high-000709596.html
Energy
Oil prices received a boost yesterday, with ICE Brent settling almost 1.8% higher, following the release of the IEA’s latest oil market report. The agency estimates that global oil demand surged by 3.2MMbbls/d in June to 96.8MMbbls/d, while also warning that crude oil inventories could see their largest drawdowns in at least a decade over 3Q21, given the OPEC+ stalemate. The IEA left their demand growth estimate unchanged for 2021 at 5.4MMbbls/d, while revising 2022 demand growth down by 100Mbbls/d to 3MMbbls/d. However, the recent spread of Covid-19 in several countries is a downside risk. The call on OPEC+ supply is estimated at 42.8MMbbls/d in 3Q21 and 44.1MMbbls/d in 4Q21, which compares to June production of 40.9MMbbls/d. Clearly the IEA report was supportive, with it highlighting the potential for significant tightness in the market if OPEC+ does not increase supply.
The latest trade data from China was less supportive, with it showing that crude oil imports over the first 6 months of the year totalled 260.66mt (10.5MMbbls/d), down 3% YoY. Lower imports should not be too much of a surprise, with refiners preferring to draw down inventories they built up last year, rather than importing at higher price levels we have seen recently. Crude oil imports in June averaged 9.8MMbbls/d, up 1% MoM, but down 25% YoY. However, admittedly, June last year was a record month for oil imports, with them averaging 12.99MMbbls/d.
Overnight the API released latest inventory numbers, which showed that US crude oil inventories declined by 4.1MMbbls over the last week. If confirmed by the EIA later today, it would be the seventh consecutive week of inventories draws. Crude stocks at Cushing also continue to fall, with inventories at the WTI delivery hub declining by 1.59MMbbls. On the product side, API numbers showed that gasoline inventories declined by 1.54MMbbls/d, whilst distillate fuel oil inventories grew by 3.7MMbbls.
Natural gas futures are rallying on Thursday after the US government reported a smaller-than-expected storage build. The energy commodity had been enduring a selloff this week before the recent gains. But can the so-called bridge fuel sustain the momentum amid the decline in the broader financial markets?
August natural gas futures surged $0.068, or 1.89%, to $3.664 per million British thermal units (btu) at 14:42 GMT on Thursday on the New York Mercantile Exchange. Despite the substantial gains, natural gas is on track for a weekly loss of about 1%, paring its year-to-date spike to below 43%.
According to the US Energy Information Administration (EIA), natural gas inventories had a build of 16 billion cubic feet in the week ending July 2, coming in less than the median estimate of 34 billion cubic feet. This is down from the 76 billion cubic feet from last week.
In total, domestic supplies stand at 2.574 trillion cubic feet, down 551 billion cubic feet from the same time a year ago. They are also 190 billion cubic feet below the five-year average.
This was a bullish report, considering that there was record heat in the northwest region of the US, and conditions in the east were higher than normal. Many parts of the US are anticipating hotter weather to return later next week, but some cooler trends are anticipated in the coming days.
EBW analysts said in a report:
“Hotter weather is expected to return, but not until next Tuesday. After the sell-offs of the past two days, a bullish report may be necessary to limit further near-term selling…A build above 30 Bcf could trigger further selling, potentially driving August back into the $3.40s. An injection in the mid-20s could help to stabilize prices. An even smaller build near 20 Bcf or even smaller could send prices back up.”
In other industry news, the International Energy Agency (IEA) forecast steady growth in liquid natural gas (LNG) imports from the US to Mexico. According to the recent report, the US is estimated to see its natural gas exports to Mexico advance by 10% until 2024.
In the first half of 2021, LNG flows through a pipeline to Mexico increased 15% year-over-year, despite a temporary interruption in February because of a devastating winter storm. Market analysts are attributed to new pipelines and added capacity for the notable gains.
The IEA noted in the same reported that North American natural gas demand is projected to swell 1% per year. Globally, natural gas demand is expected to rise by 3.6% this year before easing to around 1.7% from 2022 to 2024.
“The rebound in gas demand shows that the global economy is recovering from the shock of the pandemic and that gas is continuing to replace more emissions-intensive fuels,” said IEA’s Keisuke Sadamori, director of Energy Markets and Security, in a statement. “But stronger policies need to be implemented to put global gas demand on a path in line with reaching net-zero emissions by 2050 while still fostering economic prosperity. These include measures to ensure gas is used more efficiently.”
In other energy commodities, August West Texas Intermediate (WTI) crude oil futures tumbled $0.28, or 0.39%, to $71.92 a barrel. September Brent crude futures slipped $0.17, or 0.23%, to $73.26 per barrel. August gasoline futures were flat at $2.2057 per gallon. August heating oil futures were also unchanged at $2.0886 a gallon.
POSCO Chemical, North Gyeongsang Province and Pohang City sign an investment agreement for a cathode plant. From second to left, POSCO Chemical CEO Min Kyung-joon, North Gyeongsang Province Governor Lee Cheol-woo and Pohang Mayor Lee Kang-deok and other local government officials. Courtesy of POSCO Chemical
Company vows to build top-tier production base
By Kim Hyun-bin
POSCO Chemical is scheduled to build a new cathode material plant in the southeastern port city of Pohang, with an annual production capacity of 60,000 tons.
Cathodes are a key material in electric vehicle (EV) batteries and the 600 billion won ($525 million) plant is being built to meet rising demand for EVs.
POSCO Chemical CEO Min Kyung-joon, North Gyeongsang Province Governor Lee Cheol-woo and Pohang Mayor Lee Kang-deok attended a ceremony at Pohang City Hall, Thursday, to sign an investment agreement for the plant.
"In cooperation with North Gyeongsang Province and Pohang City, which have been evolving as the center of the battery industry, we will build a top-tier production base," POSCO Chemical CEO Min Kyung-joon said.
However, the company did not specify when construction will commence or when the plant is expected to be completed.
When the new cathode plant goes into operation, POSCO will be able to produce 160,000 tons of cathodes per year, which is enough to supply 1.8 million EVs with 60kWh battery packs, the company said.
POSCO Chemical currently operates two cathode material plants in Gumi, North Gyeongsang Province, and Gwangyang, South Jeolla Province. The company is also searching for a suitable overseas location in the U.S., Europe or China for a new plant with an annual production capacity of 110,000 tons to meet its goal of becoming a top global secondary battery material manufacturer by 2025.
Currently, LG Energy Solution (LGES) and General Motors are major partners and POSCO is considering building plants in Europe and the U.S.
LGES is currently building a new EV battery factory in the U.S. state of Ohio scheduled to be completed in 2022. LGES said it will partner with GM to construct a second $2.3 billion EV battery plant in the U.S. state of Tennessee, another potential location for a new POSCO plant.
POSCO Chemical also seeks to increase its production capacity from 40,000 tons of cathodes a year to 270,000 tons by 2025 and 400,000 tons by 2030. The company aims to produce at least 160,000 tons from local production and 110,000 tons from overseas plants by 2025.
The investment plan comes as the EV industry is growing rapidly due to rising global demand, while some carmakers have been looking into manufacturing their own automotive rechargeable batteries. All of these developments signify increased demand for cathodes. POSCO Chemical believes that the next two to three years will be a golden opportunity to secure the lead in the secondary battery materials sector.
POSCO Group has been speeding up efforts to boost its EV business in recent years as part of its diversification strategy. In May, POSCO broke ground for a plant in Gwangyang to extract lithium hydroxide, a key material for EV batteries.
According to a UBS report, the size of the global EV market stood at 3 million vehicles in 2020, but is expected to rise to 35.5 million by 2030.
A Boston-based environmental organization filed a lawsuit against Gulf and Shell Oil’s New Haven fuel storage terminals, an effort they said is aiming to make the companies install safeguards that would prevent oil and chemicals from spilling during a severe storm event.
The lawsuit was filed in U.S. District Court Wednesday, according to officials with the Conservation Law Foundation.
Both terminals sit in a flood zone, and, if flooding were to happen, could send oil and toxic chemicals into New Haven Harbor, Long Island Sound and New Haven’s Fair Haven neighborhood, according to Bradley Campbell, president of the Conservation Law Foundation. And while Campbell acknowledged that such a scenario hasn’t yet occurred in New Haven, it’s “a concern we have” every time a storm such as Tropical Storm Elsa makes its way up the East Coast, he said.
“We consider this an imminent threat,” Campbell said. “That’s why we bought the lawsuit. And we have brought similar lawsuits at similar facilities.” The group’s lawsuit alleges Gulf and Shell are violating the Clean Water Act and the Resource Conservation and Recovery Act by operating the fuel storage terminals without the proper protections for flooding and extreme weather.
However, Will Healey, with the state Department of Energy and Environmental Protection, said Thursday there “is no record of a storm-related release from any of the New Haven terminals.”
Further, Gulf Oil issued a statement Thursday saying the company’s “New Haven terminal meets an extensive set of local, state, and federal safety, security, environmental, and operational regulations, including the nationally-accepted and mandated flood plain standards created by the Federal Emergency Management Agency.”
The company’s terminal is located at 500 Water St. in New Haven, adjacent to the northbound lanes of the Pearl Harbor Memorial Bridge and near where the Quinnipiac and Mill rivers empty into New Haven Harbor.
“In addition, the New Haven terminal’s wide-ranging and detailed storm preparation protocols, all of which have been reviewed and approved by state regulators, include specific procedures to protect the community and the environment of the Long Island Sound,” the statement said. “As we always do, we will work with all of the agencies and departments that regulate Gulf and fully comply with all requirements.”
Shell’s fuel terminal is located at 481 East Shore Parkway in the city, opposite the New Haven Terminal complex.
A Shell spokeswoman on Thursday said, also in a statement, “The New Haven Terminal is committed to protecting the environment, respecting our neighbors, and setting high environmental standards in line with regulatory requirements.
“The claims brought by CLF are unfounded and should be addressed as part of the existing regulatory process, not by the courts,” the statement said.
The Conservation Law Foundation filed a similar lawsuit against Shell in Rhode Island in 2017, according to Jake O’Neill, the group’s press secretary. The lawsuit contends the company did not take necessary precautions to keep the company’s Providence fuel terminal from being flooded from a storm surge from Naragannsett Bay.
Campbell said federal law “requires, in layman’s terms, that the oil companies take every step possible to prevent a disaster from happening.”
“Our goal in these cases is not to have to engage in a long court battle, although these companies have fought us at every turn,” Campbell said. “Our priority is to get these problems fixed. These companies have a great opportunity to lead by example and take these threats seriously.”
luther.turmelle@hearstmediact.com
TEHRAN – Iranian Ministries of Energy and Industry, Mining and Trade are going to sign a memorandum of understanding (MOU) within a week for collaboration in constructing 13 power plants for industrial units across the country.
“This week or during the next week, a memorandum of understanding will be signed between the two ministers of industry and energy to start the construction of 13 power plants for industrial units across the country,” Deputy Industry Minister Saeed Zarandi told Mehr News Agency on Sunday.
“Since earlier this year, the Industry Ministry, on behalf of the industrial sector, started seeking a permit for building 13 power plants. We held several meetings with Tavanir [Iran's Power Generation, Distribution, and Transmission Company] and the Energy Ministry and proposed to sign a memorandum of understanding with the ministry. We also sent a letter to the Energy Ministry last week to expedite the issuance of the permit,” Zarandi explained.
According to the official, the mentioned power plants are financed by 12 investors from various industrial sectors and will be constructed within 2.5-3 years.
The official noted that the power plants will have a total capacity of about 10,536 megawatts (MW) whose output will be used by the mentioned industrial units.
As reported, the said power plants will be constructed in Isfahan, Hormozgan, Markazi, Yazd, Kerman, Fars, Semnan, and Khuzestan provinces.
One of the main goals of this program is to provide reliable and sustainable electricity to high-consuming industries and the country’s industrial parks in order to reduce the pressure imposed on the national grid in the industry and mining sector, according to Zarandi.
“If these power plants are built, a significant load will be removed from the national electricity distribution network,” he stressed.
The official further noted that in case of any surplus electricity generation, the industrial units can sell the surplus electricity to the Energy Ministry.
EF/MA
France proposed wind farm causes 'fury' in Belgium says expert
Mayor of De Panne Bran Degreick has hit out at France's eco-friendly plans as the imposing wind farm will restrict views of the horizon and upset homeowners who bought a house for the ocean view. Belgian Justice minister Vincent van Quickenborne said: "A complaint will be lodged with the European Commission because our country has not been consulted about the location of the area, while European directives require it."
Speaking to RT, Mr Degrieck said: "Since it is very close to the border, about 10km, it will be very from our beaches. "This landscape and the feeling we have of liberty and seeing the horizon is actually our main product. "That is why people come to our shores, that is why people buy property within an ocean view, they don't come to De Panne to see windmills. "For France, it is a very important project but doesn't mean that you have to put all the burdens on the neighbours and take all the advantages as a nation." READ MORE: Brexit outrage after France said English has 'no legitimacy'
Mayor of De Panne Bran Degreick has hit out at France's eco-friendly plans
Emmanuel Macron is set to face a legal battle with Belgium
It comes as coastal and rural communities should be paid for hosting offshore wind farms to prevent a similar backlash to fracking, the Government has been urged. Former energy secretaries Dame Andrea Leadsom and Amber Rudd have called for compensation for communities where onshore infrastructure such as underground cables, pylons and substations has to be built to connect offshore turbines to the grid. They also say they support an offshore wind "ring main" where neighbouring farms in the sea work together to reduce the burden of infrastructure on communities. They make their comments in the foreword of a report by think tank Policy Exchange, which calls for the Government to introduce mandatory "offshore wind wealth funds" for all new offshore wind farms.
Lingering concerns about the OPEC+ stalemate and monthly market reports from the international community will drive oil market markets this week, raising the potential for big swings in prices.
Last week, the uncertainty of where the polices of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are heading propelled heavy gains and losses in crude prices, ultimately ending up as a losing week for West Texas Intermediate, the U.S. oil benchmark. Concerns about the durability of a production curtailment pact of OPEC+ contributed to a nearly 1 percent loss on the week for WTI, which settled Friday at $74.56 per barrel.
Giovanni Staunovo, a commodities strategist at Swiss investment bank UBS, said that oil analysts and traders will likely focus on market reports from OPEC and the International Energy Agency, which advices developed nations on energy supply and demand.
“I expect them to signal the oil market to tighten further this summer,” Staunovo said, “but also highlight uncertainty on the demand side due to COVID.”
On HoustonChronicle.com: Why oil companies are working with customers to cut petroleum consumption
The IEA showed itself to be a soothsayer in its monthly market report for June when it said OPEC+ needs to open the spigot more to keep pace with global demand for oil. Lingering supply gaps are expected to be raised again in this month’s report.
Meanwhile, a spat between Saudi Arabia and the United Arab Emirates over production allotments at OPEC+ forced the end to a regular monthly meeting without an agreement last week. The standoff also has a geopolitical angle, and both nations are competing for dominance over the region’s trade.
Entering its second week, market watchers are wondering if the conflict could point to cracks in the OPEC+ alliance. Similar disagreements over production quotas between Saudi Arabia and Russia last year led to a price war that drove prices lower and flooded the market with oil just as demand collapsed because of the COVID-19 pandemic.
The price war contributed to West Texas Intermediates plunge in negative territory in April 2020.
“Any comments this week from the UAE or Saudi Arabia will be eagerly watched,” said Tamas Varga, an analyst at London oil broker PVM. “A price war is in no-one’s interest.”
Eyes on economy
Traders also are focused on U.S. energy demand indicators outlined in the weekly statistics from the Energy Department, which last week showed consumer demand for gasoline passing10 million barrels per day for the first time ever.
Consumers seem unfazed by escalating gasoline prices, which are the highest since 2014. Varga said the question is that pace of gasoline demand can be sustained, or if it was just a one-off from pent up demand as vaccinated Americans made the most of the July 4 holiday weekend after a year of travel and social distancing restrictions.
On HoustonChronicle.com: Today’s rising oil prices are a short-term blip: Tomlinson
Regardless, Staunovo said, it’s likely that global supply growth won’t keep up with demand, which is already outstripping production. That could be bullish for crude oil and push prices to levels not seen since late 2018, when they peaked above $76 a barrel.
The market could also be influenced by Federal Reserve Chairman Jerome Powell’s semi-annual testimony to Congress, which starts Wednesday. The Fed has viewed the return of inflation as transitory, the result of supply bottlenecks as economic activity ramps up. But some Fed officials have signaled they favor beginning to withdraw monetary stimulus from the economy sooner rather than later, which could slow economic growth and energy demand.
Libya, Venezuela
Geopolitical issues that could also be bullish for crude oil this week. Heavily armed gangs descended on the Venezuelan capital last week in an unprecedented show of force against the regime of President Nicolas Maduro. During the weekend, protesters in Libya closed off a vital oil port.
While neither country’s production is likely to have much impact of global supplies and prices, the risk of spreading instability in key oil producing regions can add a premium to crude prices.
ISLAMABAD: Azerbaijan State Oil Company (Socar) has expressed frustration over the Petroleum Division’s prolonged silence over its offer of providing two credit lines of over $220 million for oil and gas supplies to Pakistan.
Informed sources told Dawn that Pakistan’s ambassador to Baku, Bilal Hayee, had alerted the government back home to deal with the matter in a manner that did not unnecessarily cast shadow over close friendly relations between the two countries.
The two governments had agreed during a visit of Azerbaijan’s foreign minister to Pakistan in January to expand bilateral cooperation through oil and gas sector engagements to build upon strategically friendly relationship between the two countries.
Ambassador cautions against harming bilateral ties
As a follow-up from Azerbaijan, Socar Trading — a commercial arm of State Oil Company of Azerbaijan Republic — formally offered in March to supply petroleum products and LNG cargos to Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) round the year on credit under a government-to-government (G2G) arrangement.
The offer involved two separate credit lines of $120m for LNG and $100m for petroleum products for 60 days, according to Ambassador Hayee who said that Chief Operating Officer of Socar Toghrul Kocharli had approached him to inquire about Pakistan government’s response to the comprehensive proposal made by Socar. Special Assistant to the Prime Minister on Petroleum and Power Tabish Gohar did not respond to calls for comment.
According to a diplomatic note seen by Dawn, Mr Kocharli had expressed “frustration on the prolonged silence and lack of response from the Petroleum Division”. He quoted Mr Kocharli as saying that Socar “is still willing to engage with Pakistan side to help in bridging the energy needs of brotherly Pakistan but the window of the offer made in March was not indefinite”.
Ambassador Hayee informed the government that one of the closet friends, Azerbaijan, had a lot of goodwill and respect for Pakistan and a number of initiatives were currently under way to intensify and expand bilateral economic engagements. The two countries have been supporting their respective positions on issues of Kashmir and Nagorno-Karabakh at all international forums.
Therefore, he desired the petroleum division to engage with Socar to find a mutually workable arrangement for supply of LNG and petroleum products in line with national priority and needs.
A senior government official agreed that there was no big deal if an offer was declined on commercial or other considerations, but cold shouldering friendly engagements was an undesirable move and should be looked into seriously.
Azerbaijan is a major producer of oil and gas and operates several oil and chemical refineries in many countries. The two sides had entered into an inter-governmental agreement (IGA) in February 2017 for supply of a number of oil and gas products, including furnace oil, petrol, diesel and liquefied natural gas.
Since last year, Socar has also been in discussions with both PLL and PSO on term agreements that includes a G2G arrangement for supply of at least one cargo a month at prices linked to Japan Korea Marker (JKM) plus some negotiable premium. Socar has also offered an unconditional rolling credit line without any sovereign guarantee, letter of credit or standby letter of credit. The PLL’s spot cargos have so far remained in the range of JKM minus 0.5 to JKM plus 0.99.
The sources said the Socar had also been awaiting a final decision on supply of petrol (motor gasoline) contract with PSO after more than two years of negotiations.
Published in Dawn, July 12th, 2021
American drivers are continuing to be rocked by record-high gas prices as more drivers hit the road now that businesses are open and vaccination numbers increase.
The national average price of regular-grade gasoline rose by about a penny over the past week, going from $3.13 to $3.14, according to the most recent data from AAA.
The average price of gas about a year ago was cheaper by about $0.94 at $2.20. Many fear the rising gas prices could worsen inflation and hamper the economy's post-pandemic recovery.
Nationwide, the highest average price for regular-grade gas is in California, at $4.31 per gallon. The lowest average is in Mississippi, at about $2.77 per gallon.
The national average price of regular-grade gasoline rose by about a penny over the past week, going from $3.13 to $3.14, according to the most recent data from AAA
The average price of gas about a year ago at this time was cheaper by about $0.94 at $2.20
Many fear the rising gas prices could worsen inflation and hamper the economy's post-pandemic recovery
In its latest weekly report, the Energy Information Administration (EIA) found that gas demand jumped from 9.17 million b/d to 10.04 million b/d over Independence Day weekend. This reflects the highest weekly gas demand estimate released by EIA since 1991.
In addition to higher demand, pump prices have also spiked because of a 6.1 million barrel decline in total gas stocks last week. Between Friday and Monday, Exxon Mobil Corporation's share prices dropped from a high of $61.25 to $60.42.
In the same duration, BP's shares dropped from a high of $26.08 to $25.77, Royal Dutch Shell's shares dropped from a high of $40.95 to $40.47 and Chevron Corporation's shares dropped from a high of $104.10 to $103.56. Chevron's is the only one of the above whose shares have since shot back up and now sit even higher than last week, at $104.79.
The issue of the rising cost of gas was magnified last week when prices hit the highest they've been in seven years. Prices rose 44percent higher than the same time last year because the cost of crude oil soared after the Organization of the Petroleum Exporting Countries was unsuccessful in its third attempt to solve a standstill involving oil production.
However, oil prices dropped over the past week, which financial experts attributed to the global spread of the Delta variant of Covid-19.
'Traders are now refocusing on the spread of the COVID-19 pandemic and global concerns over the new variants' expansion are weighing on prices, despite tightening oil supplies globally,' Rystad Energy analyst Louise Dickson said.
Brent crude prices listed for September fell 86 cents, or 1.1percent, to $74.69 a barrel Monday. U.S. West Texas Intermediate crude prices listed for August was at $73.71 a barrel, down 85 cents, or 1.1percent.
Both benchmarks fell about 1percent last week but stagnated and are still close to the record highs last reached in October 2018.
Prices soared last week after OPEC leaders couldn't agree on a plan for producing oil so they cancelled a meeting on July 5 and left production at a standstill. OPEC, which has been limiting supplies of oil, had planned a meeting on July 5 to develop a plan to release more barrels to match spiking demand as travel and business begin to recover to pre-pandemic demand.
But, in a rare public spat, the UAE and Saudi Arabia clashed over the proposals, which would see the UAE proportionally cut its oil production by 18 percent, while Saudi Arabia slashed its own output by 5 percent.
Under Saudi Arabia's plan, OPEC raises output by two million barrels per day from August to December 2021, but would then extend remaining cuts to the end of 2022. The UAE complained that extending the cuts to December 2022, from its current deadline of April 2022, would be 'unfair to the UAE'.
Unable to reach agreement, OPEC cancelled Monday's meeting.
The issue of the rising cost of gas was magnified last week when prices hit the highest they've been in seven years. Pictured is a woman refueling her van in Bethesda, Maryland, on July 8
Oil prices then soared to new highs, with Brent crude rising 1percent to $76.96 a barrel on July 6, as investors debated whether the move meant a near-term deal for barrels was off the table.
'Robust gasoline demand and more expensive crude oil prices are pushing gas prices higher,' said AAA Spokesperson Jeanette McGee in the company's news release. 'We had hoped that global crude production increases would bring some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven year-high.'
Drivers can expect gas prices to increase another 10 to 20 cents through the end of August, bringing the national average well over $3.25 this summer, according to AAA.
'Crude oil prices fluctuated last week, but ultimately evened out. So it's likely these elevated gas prices will hang around for the near future,' Mark Jenkins, a AAA spokesman, told the Orlando Sentinel.
Moscow, 12 July 2021. PAO NOVATEK ('NOVATEK' and/or the 'Company') reported today preliminary operating data for the second quarter and first half 2021.
In the second quarter 2021, NOVATEK's hydrocarbon production totaled 156.6 million barrels of oil equivalent (boe), including 19.95 billion cubic meters (bcm) of natural gas and 3.1 million tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 11.3 million boe, or by 7.8% as compared with the second quarter 2020.
NOVATEK's hydrocarbon production totaled 314.7 million boe in the first half 2021, including 40.11 bcm of natural gas and 6.2 million tons of liquids, resulting in an increase in total hydrocarbons produced by 19.2 million boe, or by 6.5% as compared to the first half 2020.
Preliminary natural gas volumes sold in the second quarter 2021 in the Russian Federation were 15.31 bcm, representing an increase of 6.1% as compared with the prior year period, whereas LNG volumes sold on international markets amounted to 2.39 bcm, representing a decline of 3.2%. The total natural gas sales volumes, including volumes of LNG sold, aggregated 17.70 bcm, representing an increase of 4.7% as compared with the second quarter 2020. The decrease attributable to volumes sold on international markets was mainly due to the decrease of Yamal LNG shareholders' share, including NOVATEK's share, of LNG volumes sold on the spot market, and a corresponding increase in Yamal LNG direct sales under long-term contracts.
In the second quarter and first half 2021, the Company processed 3.1 and 6.2 million tons, respectively, of unstable gas condensate at the Purovsky Processing Plant, representing an increase in processed volumes by 11.2% and 11.0%, as compared with the corresponding periods in 2020. In the second quarter and first half 2021, NOVATEK processed 1.8 and 3.6 million tons, respectively, of stable gas condensate at the Ust-Luga Complex, which was 0.3% and 0.5% lower as compared with the corresponding periods in 2020.
According to preliminary data in the second quarter 2021, petroleum product sales volumes aggregated 1,912 thousand tons, including 1,287 thousand tons of naphtha, 280 thousand tons of jet fuel, and 345 thousand tons of fuel oil and gasoil. NOVATEK sold 1,018 thousand tons of crude oil and 391 thousand tons of stable gas condensate.
Global News
GLOBAL: Second TotalEnergies, MOL LNG bunker barge completes sea and gas trials
The 18,600 cubic metre-capacity vessel, which will be based in the Port of Marseille-Fos, France, was constructed by Hudong-Zhonghua Shipbuilding and is due to enter operation in Q4 2021.
The new vessel is TotalEnergies Marine Fuels’ second collaboration with shipowner Mitsui O.S.K. Lines, Ltd. (MOL) and Hudong-Zhonghua Shipbuilding. TotalEnergies Marine Fuels and MOL signed a long-term charter contract in November 2019 and construction of the LNG bunker barge began in April 2020.
Sea trials were conducted off Shanghai in June, and gas trials were completed earlier this month.
The barge will be operated by V-Ships France, under the French flag and initial contracts will be to bunker CMA CGM’s LNG-fuelled containerships and MSC Cruises’ upcoming LNG-powered cruise ships that call at the French port.
Leveraging the design of TotalEnergies Marine Fuels’ first chartered LNG bunker vessel – Gas Agility – the new vessel will incorporate feature equipment which will boost its bunkering efficiency and flexibility to supply LNG to a wide range of vessels across various segments and sizes. These improved features include an additional bow thruster, upgraded cargo pumps and high duty compressors, as well as a pressure reduction system to optimise bunkering operations of ‘Type C’ tank vessels under all conditions.
‘We are excited to be at the forefront of making LNG bunkering capabilities readily available in France and the Mediterranean region,’ said Jérôme Leprince-Ringuet, Vice-President Marine Fuels at TotalEnergies.
‘With shipping’s accelerating transition to this cleaner marine fuel, we look forward to providing our customers with another major European hub for their LNG bunkering needs.’
Kenta Matsuzaka, Senior Managing Executive Officer of MOL, commented: ‘It is my great pleasure and honour to witness this important milestone of the project. MOL will support TotalEnergies in a long term throughout the LNG supply chain, contributing to stable energy supply and decarbonisation of the shipping industry. We are proud of being part of the ongoing energy transition of the shipping industry by enabling our customer to supply cleaner marine fuel.’
By the end of 2021, TotalEnergies Marine Fuels will charter two LNG bunkering vessels in Rotterdam and Marseille and share the use of a third bunker vessel in Singapore.
In February 2021, the Singapore entity of TotalEnergies Marine Fuels also received a licence from the Maritime & Port Authority of Singapore (MPA) to supply LNG in the Port of Singapore from 2022.
Press Release
Stavanger, July 12th 2021
The revamp of the compressors and gas infrastructure at Kårstø will not only support the Norwegian government's goal of reducing emissions from onshore industry by reducing annual emissions by 500.000 tonnes CO2, but also create significant work for the supplier industry.
Together with partners in Gassled, Sval Energi is one step closer to investing several billion NOK for replacing the gas driven compressor system that power the gas transport from Kårstø with a new electric unit. Next phase in the project will include detailed engineering of the chosen concept, before a final investment decision is made late 2022. The upgrade will make the gas infrastructure better fit for the future.
'We plan to make this investment to reduce the carbon emissions from the plant, and to make the gas infrastructure ready for the future', says Sval Energi CEO, Nikolai Lyngø.
Kårstø is one of Norway's largest carbon emitters, with approximately 1,2 million tonnes of CO2 emitted every year. The project will reduce emissions by 500.000 tonnes CO2, corresponding to the annual emissions from 250.000 fossil fueled cars.
'The world needs both more energy and clean energy. Investing in future-fit gas infrastructure is one way to supply cleaner energy and make sure we are able to continue creating value in the longer term', says Lyngø.
The project supports the Norwegian government's overall goal of reducing carbon emissions significantly by 2030 and will replace gas driven compressors with electric ones. Electricity will primarily come from hydropower.
Sval holds a 15,6 % interest in Gassled, which is the world's largest offshore gas pipeline network. The network links gas producing fields in the North Sea and the Norwegian Sea to onshore Norway and continental Europe. Sval's partners are Petoro (46,697%), CapeOmega (26,322%), Silex Gas Norway AS (6,428%) and Equinor Energy AS (5 %).
Gassled consists of 8.000 km offshore pipeline, two onshore gas processing plants at Kårstø and Kollsnes, and five onshore receiving gas terminals in Germany, Belgium, France, England and Scotland. Gassled is operated by Gassco.
Iranian President Rouhani in April visiting the exhibition of nuclear achievements. Credit: Official website of the President of the Islamic Republic of Iran. https://president.ir/en/120598.
On July 6, the International Atomic Energy Agency (IAEA) reported that Iran was moving ahead with manufacturing “uranium metal enriched to 20 percent U-235 [uranium’s most fissile isotope],” the latest in a series of steps violating Iran’s commitments under the Joint Comprehensive Plan of Action (JCPOA). While Tehran maintains that there is little for the international community to be concerned about—its ambassador to the IAEA pointed to benefits for producing radiopharmaceutical treatments—European and US officials are not convinced. The production of enriched uranium metal, which can be used in the core of nuclear weapons, could have serious nonproliferation implications and adds a complication to already-laborious negotiations in Vienna aimed at restoring the JCPOA.
The five permanent members of the UN Security Council and Germany negotiated the JCPOA in 2015 to address mounting concerns over Iran’s nuclear program. In these negotiations, Tehran agreed to restrict its nuclear activities and allow inspections and monitoring of its facilities in exchange for relief from international sanctions. But it began downgrading its compliance with the deal’s nuclear limits in 2019, citing the US decision, under then president Donald Trump, to pull out of the agreement a year earlier and launch a “maximum pressure” campaign of crushing sanctions that both denied Tehran many of the promised benefits of the 2015 deal and contributed to severe economic hardship.
Tehran steadily expanded stockpiles of enriched uranium, raised enrichment rates, and stepped up research and development, all while underscoring its willingness to reverse all of what it called “remedial measures” if and when the deal was fully revived. The breaches broadened and deepened in line with a law that Tehran enacted following the killing of a senior Iranian nuclear scientist in November 2020, allegedly by Israel. The new law includes a requirement for uranium metal production—an action banned until 2031 under the JCPOA. Tehran informed the IAEA on December 16 that it planned to begin research and development and, within a month, was setting up equipment at the Fuel Plate Fabrication Plant in Isfahan with a view to completing the first step in a three-stage process by mid-2021.
On January 16, the three European parties to the JCPOA—France, Germany and the United Kingdom—issued a joint statement sounding the alarm on these plans. The statement argued that there was “no credible civilian use for uranium metal” and that the move carried “potentially grave military implications”—a reference to their possible application toward nuclear weapons development. The IAEA subsequently confirmed that Iran had indeed in early February begun the production of uranium metal, though still unenriched.
It was around this time that Trump departed and the Biden administration took office in the United States, with the goal of reentering the 2015 agreement and, on that basis, reversing Iran’s escalating nuclear activity. Over the past three months, it has engaged in six rounds of indirect negotiations with the Iranians aimed at restoring mutual compliance with the deal, with the stated aim of using a revived agreement as prelude to wider talks on non-nuclear concerns. The latest round of talks concluded on June 20, and as of yet there is no start date for the seventh. Thus far, however, even though Iran is indirectly talking to the United States, it is not decelerating its nuclear activities, while the US sanctions architecture remains largely in place.
In mid-April, following what Foreign Minister Javad Zarif described as an act of “reckless sabotage” at the Natanz Fuel Enrichment Plant that knocked out some of the facility’s centrifuges by blowing up the center’s power supply, again with suspected Israeli involvement, Iran ramped up the rate of uranium enrichment to an unprecedented 60 percent—a sharp jump from the 20 percent it initiated at the start of the year and well beyond the JCPOA’s 3.67 percent cap. This brings it much closer to weapons grade, which is above 90 percent. It has also been less than cooperative with the IAEA over monitoring and verification authorities that provide enhanced inspections of its facilities, without which the agency would be, in the words of its director general, “flying blind.” This has further strained relations between Tehran and the agency, which are already edgy over a prolonged and still-inconclusive safeguards probe into activities of concern at undeclared facilities that Iran has failed to explain.
These factors—Iran’s continued nuclear build-up and its less-than-forthcoming level of cooperation with the UN’s nuclear watchdog, as well as its failure to indicate when it intends to pick up the negotiations in Vienna after a nearly three-week hiatus as the outgoing Rouhani administration enters a lame duck period—serve as backdrop to the news that Iran had started enriching uranium metal. Paris, London, and Berlin immediately expressed “grave concern,” describing the move as “a key step in the development of a nuclear weapon” and warning that “Iran is threatening a successful outcome to the Vienna talks.” The US State Department called it “another unfortunate step backward” and called on the Iranians “to stop this brinksmanship.”
As with other breaches of the nuclear deal, uranium metal production poses two distinct but interrelated concerns. The first is the manner in which Iran’s overall nuclear capabilities are qualitatively and quantitatively growing. Notably, larger stockpiles and higher enrichment are cutting the time needed to accumulate enough fissile material for a single nuclear weapon; Secretary of State Antony Blinken has noted that this “breakout time” has dropped from one year when the JCPOA was fully in place to “a few months at best”—and could fall further still if present trajectories continue. The second worry is that even if the JCPOA’s restraints are successfully reset on physical infrastructure, Iran will have acquired technical know-how that cannot be undone, now extending to enriched uranium metal development. Western officials have been mindful of this long-term conundrum, and it remains to be seen whether and how negotiations in Vienna try and account for the advances that have accumulated over the past two years.
In terms of immediate implications, the United States, France, Germany, and the United Kingdom remain committed to the principle of JCPOA restoration, and Iran’s announcement in and of itself will likely not derail their interest in seeing the talks resumed and concluded. Even so, the gaps between the two sides remain significant. For the Western powers, each new step Tehran undertakes in breach of the deal adds another issue that must be addressed if the JCPOA’s nonproliferation gains are to be fully restored. Moreover, these are not the only sticking points that must be addressed on the way to a revitalized JCPOA: Washington also wants Tehran to commit to follow-on negotiations on a “longer and stronger” nuclear deal. The Iranians, meanwhile, are demanding the full lifting of sanctions put in place during the Trump administration’s “maximum pressure” era, as well as “assurances” that the United States, having unilaterally exited the JCPOA once despite Iran’s compliance, will not pull out of the agreement a second time—though US diplomats counter that “there is no such thing as a guarantee.”
In an optimistic assessment, stepping up uranium metal activity is merely Tehran’s latest gambit to show that it will push on with its declared nuclear activities until the two sides find a satisfactory diplomatic arrangement, at which point it will roll back this and other violations in return for a sufficiently robust degree of sanctions relief. But a more sobering scenario is one in which what both sides are willing to offer falls short of what the other expects, and Tehran, contending not just with international negotiations but also with a domestic presidential transition, is increasingly less inclined to compromise. If the latter proves to be the case, a JCPOA that seemed on the cusp of a new lease on life after three years of steady attrition could receive a final blow, with all the accompanying uncertainty on what comes next and the risks that it entails.
Asia to lead global polypropylene capacity additions by 2025
Asia is expected to lead the global polypropylene capacity additions with a capacity of 40.32mn metric tons/year by 2025. China accounts for nearly half (47%) of Asia’s capacity additions and the country is projected to lead the global polypropylene capacity additions by 2025, says GlobalData, a leading data and analytics company.
GlobalData’s report, Global Polypropylene Industry Outlook to 2025 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants reveals that the global polypropylene capacity is poised to see considerable growth by 2025, potentially increasing from 85.57mn mt/yr in 2020 to 136.79mn mt/yr in 2025, registering a total growth of 60%.
Amareswari Kanaparthi, Oil and Gas Analyst at GlobalData, says: “China leads the capacity additions in the region with a capacity of 19.02mn mt/yr by 2025. Majority of the additions will be from a planned project Zhejiang Petrochemical Daishan Polypropylene Plant 2 with the capacity of 0.90mn mt/yr by 2022.”
GlobalData identifies India as the second highest contributor in terms of polypropylene capacity additions with a capacity of 15.28mn mt/yr by 2025. Majority of the capacity additions will be from an announced project, Reliance Industries Jamnagar Polypropylene Plant 3, contributing capacity of 5.20mnt mt/yr respectively.
Iran will be the third highest country in terms of capacity additions with the capacity of 4.80mn mt/yr by 2025. Majority of the capacity additions will be from an announced project Jam Polypropylene Company Assaluyeh Polypropylene Plant 2 with the capacity of 0.55mn mt/yr, expected to be added by 2025.
Reliance Industries Ltd, Oriental Energy Co Ltd and Indian Oil Corp Ltd will be the top three companies globally in terms of planned and announced capacity additions over the outlook period.
The statements, opinions and data contained in the content published in Global Gas Perspectives are solely those of the individual authors and contributors and not of the publisher and the editor(s) of Natural Gas World.
Chevron U.S.A. Inc., (NYSE: CVX) through its Chevron Products Company division (Chevron), and Cummins Inc., (NYSE: CMI) a global power and hydrogen technologies leader, announced a memorandum of understanding (MOU) to explore a strategic alliance to develop commercially viable business opportunities in hydrogen and other alternative energy sources.
The MOU provides the framework for Chevron and Cummins to initially collaborate on four main objectives: advancing public policy that promotes hydrogen as a decarbonizing solution for transportation and industry; building market demand for commercial vehicles and industrial applications powered by hydrogen; developing infrastructure to support the use of hydrogen for industry and fuel cell vehicles; and exploring opportunities to leverage Cummins electrolyzer and fuel cell technologies at one or more of Chevron’s domestic refineries.
“Chevron is committed to developing and delivering affordable, reliable, ever-cleaner energy, and collaborating with Cummins is a positive step toward our goal of building a large-scale business in a lower-carbon area that is complementary to our current offerings,” said Andy Walz, president of Chevron’s Americas Fuels & Lubricants. “Hydrogen is just one lower-carbon solution we are investing in that will position our customers to reduce the carbon intensity of their businesses and everyday lives. We’ve also invested in developing and supplying renewable natural gas, blending renewables into our fuels, coprocessing biofeedstocks in our refineries, and abatement projects that will reduce the carbon intensity of our operations.”
“Working with Chevron to advance hydrogen technology and accelerate ecosystem development helps us continue our goal in enabling a carbon-neutral world,” said Amy Davis, vice president and president of New Power at Cummins. “The energy transition is happening, and we recognize the critical role hydrogen will play in our energy mix. We’ve deployed more than 2,000 fuel cells and 600 electrolyzers around the world and are exploring other hydrogen alternatives including a hydrogen-fueled internal combustion engine as we continue to accelerate and harness hydrogen’s powerful potential.”
SINGAPORE (ICIS)--China’s gasoline and gasoil export by refiners is expected to register a sharper-than-expected decline in July.
The volume of gasoline and gasoil for the second half of the year is also predicted lower on a year-on-year basis until the issuance of the second batch of distillates export quotas by the government.
Only around 12% of the first-batch export quotas for distillates will be left for Chinese refiners after July and the government has not yet issued the second-batch export quotas.
Chinese refiners plan to export 500,000 tonnes of gasoil in July, down by 67% month on month and down by 9% year on year, according to ICIS data. This is the lowest level since June 2015 on ICIS record.
Their July planned export volume for gasoline stands at merely 90,000 tonnes, a plunge of 91% month on month and 92% year on year, respectively, also setting the lowest level since February 2008, ICIS data showed.
PetroChina and NORINCO Group had used up their first-batch distillates export quotas by June and other oil refiners have limited quotas available.
Of the 590,000 tonnes of gasoline and gasoil exports in July, only 60,000-tonne gasoline exports are from Zhejiang Petroleum & Chemical (ZPC) and the rest are all contributed by Sinopec’s subsidiary refineries.
China’s gasoline and gasoil exports in the first half of 2021 had grown significantly compared with the same period last year, driven by the slightly easing pandemic woes in overseas countries.
In January-June 2021, China exported 9m tonnes of gasoline, up by 14% year on year and 12.41m tonnes of gasoil, up by 9% year on year, according to January-May data from the General Administration of Customs (GAC) and refiners’ June export plan tracked by ICIS.
But to breakdown by months, China’s gasoline and gasoil exports have been falling since April and hit the year-to-date low in July.
Oil refiners having export quotas at hand trimmed exports in fear for potential tight supply in the domestic market, as the heavy turnaround season arrived in the second quarter and demand was picking up on improving economic conditions and rising temperatures.
Adding fuel to the concerns of a constrained supply is the government’s rectification of the domestic refined oil products market, including the levy of consumption tax on imported mixed aromatics, imported light cycle oil and imported cutback bitumen, effective from 12 June.
The government also launched inspections over Chinese teapot refiners on crude import quotas.
Such measures aimed to curb surplus domestic output have stirred worries among market players about a short supply, prompting Chinese refiners to reduce exports.
The market is still waiting for the issuance of the second batch of quotas.
Oil refiners with available export quotas are expected to keep their monthly export volume low so as to maintain a certain amount of exports until the second-batch distillate export quotas are issued.
As for PetroChina and NORINCO Group, they have no export quotas left and have to divert to domestic sales.
Sources from Guangxi Petrochemical and Jinxi Petrochemical echoed this by saying that their production plans are based on domestic sales.
If the output cannot be fully absorbed domestically, the refiners are poised to cut run rates. PetroChina’s daily crude throughput in July is forecast to drop by 4-5% from June.
Analysis by Anita Yang
Fortescue Future Industries (FFI), the 100% renewable green energy and industry initiative of Fortescue Metals Group Ltd, says it has reached its June 30, 2021 targets for initial decarbonisation projects, with headway made on its hydrogen, ammonia and battery power projects.
FFI CEO, Julie Shuttleworth, said the company set out to test the hypothesis that there was sufficient 100% renewable green energy, hydrogen, ammonia and industrial manufacturing potential, for products such as green cement, green fertiliser, green iron and steel, “to fully satisfy the world’s needs”.
“To demonstrate this within Fortescue, we set ambitious decarbonisation targets for our own heavy industry,” she said. “These are being driven by FFI’s Green Team, who are aiming to eliminate carbon emissions from our own operations. This work commenced in earnest only several months ago and the results have been immense.”
FFI’s Green Team has established a facility at Hazelmere in Perth, Western Australia, where it has been managing and trialling technology on hydrogen, ammonia and battery power for trains, ship engines, haul trucks and drill rigs for technology demonstration.
The “ground-breaking progress” to date includes:
Successful combustion of ammonia in a locomotive fuel, with a pathway to achieve completely renewable green fuel;
Completion of design and construction of a combustion testing device for large marine (ship) engines, with pilot test work underway and a pathway to achieve completely renewable green shipping fuel;
Finalised design of a next generation ore carrier (ship) that will consume renewable green ammonia, with the Classification Society giving in principle design approval;
Testing of battery cells to be used on Fortescue haul trucks – a project it is pursuing with Williams Advanced Engineering;
Design and construction of a hydrogen-powered haul truck for technology demonstration complete, with systems testing underway;
Design and construction of a hydrogen powered drill rig for technology demonstration complete, with systems testing underway;
Successful production of high purity (>97%) green iron from Fortescue ores at low temperature in a continuous flow process; and
Successful initial trialling to use waste from the green iron process noted above, with other easily sourced materials, to make green cement.
Back in March, Fortescue said it would accelerate its carbon neutrality efforts, now expecting to achieve this ‘green’ milestone by 2030, 10 years earlier than its previous target.
Fortescue CEO, Elizabeth Gaines said the company was using its large industrial platform of operating mine sites in the Pilbara to trial and demonstrate technologies in completely renewable green hydrogen, green ammonia and green electricity.
She added: “All of us at Fortescue are committed to its decarbonisation. Our great progress to date and our ongoing projects underpin Fortescue’s plan to become a major renewable energy and industry product exporter. As part of this plan, we are aiming to meet or beat our internal global industry-leading target to achieve carbon neutrality by 2030.”
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Canada's diesel ban and the UK's new biodiversity metric: The sustainability success stories of the week
As part of our Mission Possible campaign, edie brings you this weekly round-up of five of the best sustainability success stories of the week from across the globe.
Published every week, this series charts how businesses and sustainability professionals are working to achieve their 'Mission Possible' across the campaign's five key pillars - energy, resources, infrastructure, mobility and business leadership.
As UK tabloid headlines filled with news from Wimbledon and the UEFA European Football Championship, projects and initiatives which empower businesses to play their part in achieving a sustainable future, today, continued to launch and scale-up.
ENERGY: Next adds rooftop solar to Yorkshire distribution centre
In the lead-up to their participation in edie’s Sustainable Investment Conference on 13-14 July, the Aviva Investors team have announced the completion of a £3m rooftop solar installation at retailer Next’s distribution centre in South Elmsall, Yorkshire. The 2,400 kWp system is expected to generate more than 2.1 million kWh of energy each year, reducing Next’s power-related (Scope 2) emisisons by more than 447,000 kg of CO2e annually.
The Aviva Investors Lime Property Fund acquired the three buildings of the Next distribution centre in a sale and leaseback deal in May 2020. To enable the installation of the rooftop solar, one of the buildings needed to have its entire roof fully refurbished. Lynx Group supplied and installed the solar panels and will oversee their operation.
“This project showcases our commitment to renewable and clean energy solutions in alignment with our net-zero strategy,” Aviva Investors’ fund manager Kris McPhail said. “Financing clean energy initiatives not only provides effective engagement with tenants on net zero initiatives, but also further enhances the environmental resilience of the asset and provides stable and tangible financial returns.”
RESOURCES: Tetra Pak unveils €100m investment to boost packaging recyclability
As part of its Circular Economy Action Plan, the EU is cracking down on single-use plastics – particularly those which are not recyclable. The Plastics Strategy which forms part of the Action Plan requires all plastic packaging placed on the market in member states the be recyclable by 2030. It sets interim ambitions of recycling 50% of plastic packaging by 2025.
In preparation for these requirements, Tetra Pak has launched a €100m investment package, to be spent over a three-year period at its factory in Châteaubriant, France. The investment will help the plant switch to producing only cartons with tethered caps, which improve recyclability and eliminate litter as they are designed to stay attached to the package. By early 2024, Tetra Pak is expecting to have 50% of the production lines at the facility replaced with those capable of producing tethered caps.
"We are particularly proud of this investment project, which demonstrates how we consistently strive to provide customers with sustainable innovations and meet the rapidly changing demands of regulators and society,” Tetra Pak Europe and Central Asia’s president Charles Brand said. “High-performance food packaging plays a critical role in feeding the world, but it must do so sustainably, so that food availability does not come at the cost of the planet.”
TRANSPORT: Canada to ban petrol and diesel cars, vans and trucks from 2035
With the UK supporting its 2050 net-zero target with a 2030 ban on the sale of new petrol and diesel cars, other geographies with net-zero laws are facing pressure to develop similar supporting mandates. The EU, for example, is understood to be considering 2030 and 2035 deadlines.
This week saw Canada, which first announced plans to legislate for net-zero by 2050 last November, pledging to ban new trucks and cars with internal combustion engines (ICE) from 2035. As lawmakers work to enshrine this in legislation, interim targets for 2025 and 2030 will be developed. The move comes after Quebec, Canada’s largest province, announced plans for a 2035 ban on ICE vehicles.
"We are committed to aligning Canada's zero-emission vehicles sales targets with those of the most ambitious North American jurisdictions," Canadian Environment Minister Jonathan Wilkinson said. "We will work with the US to harmonize fuel efficiency regulations and we're investing in consumer rebates, charging stations, business tax breaks and industry transition costs.”
THE BUILT ENVIRONMENT: UK Government launches new tools to help developers deliver biodiversity gain
Back in 2019, the UK Government first unveiled plans to require developers to deliver biodiversity net-gain. As the Environment Bill has progressed through Parliament, green groups have called for more clarity on how businesses should measure net gain and what can be done to decrease reliance on offsetting – funding nature restoration or creation elsewhere after damaging it on site.
The UK Government has this week published the new Biodiversity 3.0 Metric, against which all developers in England will need to measure and account for nature losses and gains from development and changes in land use and management. There is also a Small Sites Metric – a simplified version for use on smaller sites. Natural England, the Department for Food, the Environment and Rural Affairs (Defra) and the Ministry of Housing, Communities and Local Government.
Natural England chair Tony Juniper said: “Investing in Nature’s recovery is a vital national priority. These innovative new tools will help advance that ambition via the development planning process, ensuring we leave the natural environment - both terrestrial and marine - in a measurably better state than it was before.”
BUSINESS LEADERSHIP: Credit Suisse & JP Morgan partner to draft sustainable investment strategy for food systems
Banks and investors have been announcing net-zero targets in their droves over the past 12 months or so, but progress to stop providing strings-free support to companies which are harming natural systems, thereby reducing climate adaptation and resilience capacity and damaging biodiversity, has proven slower. The Intergovernmental Panel on Climate Change (IPCC) has proven that the single biggest driver of deforestation, historically, has been the agri-food sector, which also generates around one-quarter of man-made emissions.
As such – and with the UN’s first Food Systems Summit taking place later this year – Credit Suisse has partnered with JP Morgan Asset and Wealth Management (JPMAWM) to develop an investment strategy that will require businesses across the agri-food system to improve their efforts on preventing biodiversity loss, decarbonisation, improving climate resilience and delivering human nutrition and health. With agri-food accounting for more than 90% of global freshwater consumption, water will be included in the strategy as well.
“As we co-develop and innovate solutions and products, we look to help wealth management clients invest and make a positive contribution to addressing the double burden of malnutrition – feeding people and protecting the planet,” Credit Suisse’s chief investment officer Michael Strobaek said.
Join the conversation at edie's Sustainable Investment conference
edie's Sustainable Investment Conference is returning in a virtual format for the second consecutive year on 13-14 July, with hundreds of professionals already registered to attend.
The conference will unite sustainability professionals from businesses and financial experts from investors to discuss the array of challenges and opportunities that embracing the green recovery can bring. Experts from the likes of BlackRock, UKSIF, UBS Asset Management, CDP and WWF feature on the event's high-level speaker list.
Click here for a full agenda and to register for tickets.
Sarah George
The drastic changes in the world as we know it due to climate change have led to an increased awareness about the need to go green. Among firms from different sectors that are initiating policies and innovation to reduce their carbon footprint, Amazon and IKEA have started off with adoption of solar power and clean fuels in the Middle East.
As Dubai creates energy from trash, researchers in the region have also come up with methods to create plastic substitutes by recycling leftovers to prevent wastage. As part of a relatively smaller yet important initiative, a cafe in Saudi Arabia is using solar panels, EV chargers and compost machines to become part of the eco-friendly revolution.
The eatery in Riyadh is aptly named Respire Lounge, and it recharges electric cars via Tesla chargers, while visitors get rejuvenated with coffee. The establishment that gives a whole new meaning to guilt-free snacking, also provides free beverages via coupons to customers who responsibly dispose of their plastic bottles for recycling.
Solar panels have been installed at the cafe, which has gained popularity via videos on social media, and profits will be injected back into harnessing more energy from the sun. The food which is left behind, enters a cycle where the compost machine turns it into fertiliser for cultivating greenery in the premises.
On top of saving the planet, Respire Lounge is also generating jobs for locals, by participating in the Saudisation program that requires businesses to hire citizens of the kingdom in most positions.
Apart from this eatery that took the high-tech route during the pandemic, the country has also witnessed popularity of robots that serve consumers at the cafe. As precursors to the development of smart initiatives like NEOM and the Red Sea Project, these smaller steps are preparing the country for a sustainable future.
To further boost recycling and cut down emissions, Saudi's oil powerhouse Aramco is working on capturing carbon dioxide from vehicles, to extract energy from it.
Image: Shutterstock
The electric vehicle (EV) market has exploded over the last couple years, with multiple firms exclusively manufacturing the automobiles and even developing software and batteries in-house. Tesla, Inc. (TSLA) was one of the first to be considered as more than just a traditional auto retailer. As the technologies involved in the cars advance and more investment pours in, the EV market looks set to continue its rise for years to come.
And now, even some of the oldest, most legacy auto manufacturers are moving straight into the eye of the storm. General Motors Company (GM), led by CEO Mary Barra, is heavily investing in EVs, and is thrusting its might behind as much technology it can get its hands on. Large shifts in company direction are leading analysts to categorize it more often as a disruptive technology firm, more similar to Tesla than to its former self. (See General Motors stock charts on TipRanks)
Discussing this shift in his report, Dan Ives of Wedbush Securities wrote that although EVs currently account for about 3% of autos sold globally, this metric could increase to 10% by 2025, and even 20% or more by 2030.
Ives reiterated a Buy rating for the stock, and declared a price target of $85. This target reflects a potential 12-month upside of 44.66%.
In order to capture as much of that market as possible, GM has announced $35 billion in research and development for batteries and autonomous driving software, as well as seven new manufacturing sites exclusively for EVs. With this investment, he expects GM to release up to 30 new all-electric models by 2025.
Furthermore, the five-star analyst mentioned that GM’s CEO expects EVs to comprise 100% of all its car sales by 2035. This may seem unrealistic at the moment, but GM is moving full steam ahead with its multi-decade plan.
The nascent U.S. EV market could be worth $5 trillion by 2030, and by moving swiftly to capture much of it, Ives believes GM can double its market cap by the end of 2022. This would represent investors’ confidence of a bright decade ahead for GM.
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General Motors currently holds about 17% of the U.S. auto market, and could very well “eat up” more of the EV market share in the coming years.
On TipRanks, GM has an analyst rating consensus of Strong Buy, based on 14 Buy ratings and 1 Hold rating. The average General Motors price target is $73.73, which suggests a possible 12-month upside of 25.48%. The stock closed trading Friday at a price of $58.76 per share.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
https://finance.yahoo.com/news/general-motors-preparing-shock-ev-125928234.html
China-based battery maker EVE Energy is reportedly planning to acquire a 28.1% stake in lithium producer Jinkulun Lithium Industry.
The two firms are also planning to establish a Qinghai-based joint venture (JV) to build a lithium chemicals project with an estimated investment of up to $277.8m (CNY1.8bn), reported Reuters.
The JV will be 80% owned by EVE and 20% by Jinkulun and build a plant with a capacity to produce 30,000tpa of lithium carbonate and lithium hydroxide, according to the news agency.
The first phase of the project will have a production capacity of 10,000t, with the overall construction work planned to be completed in 36 months.
EVE expects the new venture to improve the stability of its supply chains and reduce the impact of raw material price fluctuations, reported Reuters.
The latest move forms part of EVE’s efforts to secure ingredients such as lithium, which is required for batteries used in electric vehicles (EV).
Earlier, EVE purchased a minority stake in cobalt producer Zhejiang Huayou Cobalt and a 17% interest in a $2.1bn nickel and cobalt project in Indonesia.
Last month, a report said that Ganfeng Lithium is planning to build a lithium production plant in Fengcheng, Jiangxi province, China.
The plant is planned to be built in two phases. It will have an annual production capacity of 25,000t of lithium hydroxide, a chemical used in nickel-rich batteries, in the first phase.
As part of the proposed plan, the firm also intends to set up a JV in Fengcheng.
https://www.mining-technology.com/news/eve-energy-boost-lithium-production-china/
SOUTHINGTON — Some town residents were told to shelter-in-place Sunday night after an apparent ammonia gas leak at a local ice supplier.
Southington authorities received multiple 911 calls for a strong odor of ammonia near Elizabeth Drive around 7:55 p.m. Sunday, fire officials said through a press release
Firefighters responded to a facility at 93 Industrial Drive “as the department was aware through the emergency pre-planning process that Ammonia was used at this location,” fire officials said.
When crews arrived on scene, they smelled the odor and spotted a “plume” of gas venting from from the roof using thermal imaging.
“Further investigation yielded that an Anhydrous Ammonia tank was leaking inside the building,” fire officials said.
People living within a mile-and-a half of the facility were told to shelter-in-place and with their windows closed and to turn off their AC units.
Hazmat teams responded along with mutual aid support to cover the town while crews worked.
“The incident was stabilized just after midnight. No injuries were reported. The incident is currently under investigation,” fire officials said. “Crews will remain on-site through the evening and into the morning to monitor the incident.”
Representatives from the state Department of Energy and Environmental Protection and the Division of Emergency Management and Homeland Security Region 3 were also called to the scene.
Ammonia is commonly used in household cleaners as well as several industries, including as a commercial refrigerant in food-processing and ice-making facilities.
According to the Centers for Disease Control and Prevention, exposure to high levels of ammonia can “irritate and burn the skin, mouth, throat, lungs, and eyes.” Exposure to very high levels can harm a person’s lungs and even lead to death.
The floating offshore wind pilot project designed by industry veteran Henrik Stiesdal is being towed towards a test site in the Norwegian North Sea.
Stiesdal Offshore Technologies’ TetraSpar demonstration project, backed by Shell and RWE, is due to be installed 10km from shore in water depths of 200 metres at the Marine Energy Test Centre (Metcentre) near Stavanger in Norway.
The 3.6MW Marine Energy Test Centre Marine Energy Test Centre (3.6MW) Offshore off Stavanger, Norway, Europe Click to see full details project consists of a 3.6MW Siemens Gamesa Renewable Energy turbine installed on a tubular steel base with a suspended keel. Danish steel specialist Welcon assembled the platform directly from quayside with no need for welding in the port of Grenaa in Denmark.
The tetrahedral structure will be moored to the seabed by three anchor lines and connected to the electrical grid.
Stiesdal Offshore Technologies’ CEO Henrik Stiesdal said: “So far, we are very pleased that the demonstration project has proved what we set out to prove: that it is possible to safely manufacture, transport, and assemble a floating foundation using a scalable industrialised approach.”
Siemens Gamesa added that deploying pilot and pre-commercial scale floating offshore wind projects can help to improve designs of platforms and to establish their costs.
The TetraSpar demonstration project is owned by Stiesdal Offshore Technologies (0.7%), Shell (46.2%), Tepco (30%) and RWE (23.1%).
Prior to launching Stiesdal Offshore Technologies, Henrik Stiesdal designed one of the world’s first wind turbines in 1978, and worked for Vestas as research and development project manager and Siemens Wind as chief technology officer.
Miller Technology has announced the sale and delivery of the first BEV Relays to BHP Mitsubishi Alliance’s Broadmeadow operation in Queensland, Australia.
This battery-powered light duty vehicle (LDV) is capable of completing its bulk charge in less than 20 minutes, providing enough range to complete a typical mining shift of 10 hours, according to Miller. The regenerative braking capability, meanwhile, can add up to two hours in a mine with optimised topology.
This run time and fast charging is made possible by an advanced battery management system (BMS), which monitors battery temperature, with its enclosed refrigeration temperature monitoring system keeping the temperature within the optimal narrow temperature range. The BMS responds instantly to varied demands, while charging and in use, helping the Relay to provide 10 years of battery life, according to Miller.
James Palmer, BMA President, said: “The new electric transporters are a major step towards safer and more sustainable underground workings. This is another positive step in our journey to achieve zero emissions by the year 2050.”
Darren Wood, Project Manager BMA, added: “Diesel machines create a real hazard in an underground mine and we’ve been on a journey over the past four years to reduce these diesel particulate matter emissions in the ventilation system. We’re thrilled to have found the perfect solution in these battery-electric vehicles, which will be used by our maintenance personnel to travel in ‘negligible-explosion risk zones’ throughout the underground mine.
“Hopefully, within the next two years, we will have electric vehicle options available that can enter all areas of our underground coal mines. We couldn’t be more excited to be at the forefront of these new global initiatives.”
Miller’s BEV Relays are not yet certified as ‘Explosion/Flame Proof’ in Australia, but IM understands the company is working on achieving this certification in around the next 18 months. The electric LDV has previously had a trial run at Alamos Gold’s Young-Davidson mine in Ontario, Canada.
Miller Technology said: “Unlike traditional battery-electric vehicle mining LDVs, which are modifications of donor vehicles, typically Toyota’s Land Cruiser, the ground-up design of the Relay BEV has meant ‘everything that is mining’ has been incorporated into every aspect of the design and production.”
The Canada-based company says it has invested over a decade of research and development into the Relay BEV, focusing on serviceability and modularity, with a rugged design and construction. The Relay BEV was designed completely in-house by Miller Technology and uses an RESS (Rechargeable Energy Storage System). The system is rated for a maximum continuous 3C charging rate and maximum continuous discharge rate of 5C.
“Utilising the CCS (Combined Charging Strategy) protocol via Combo-2 connection and NMC-G cells (nickel manganese cobalt cathode and graphite anode) offers charging with the most convenient and most widely adopted chargers worldwide,” the company said.
Power is directed to a mid-mounted motor with dual drive output shafts providing 150 kW (peak) to both front and rear differentials. With a drive shaft exiting each end of the electric motor, the 4×4 system minimises moving parts and negates the need for a transfer case, capitalising on drivetrain reliability and power efficiencies, according to the company.
The dual-cab configuration can accommodate four mining-equipped, work-ready adults comfortably and can carry a 2 t payload. Around 1,550 Nm of torque is available from the motor, with the ability to offer the same drivetrain in the Miller Technology BEV Underground Grader.
A ROPS/FOPS Level 2 structure is integrated into the cabin structure, while telemetry diagnostics are data logged on board and transmitted to a control room through Wi-Fi or LTE networks. The data transfer is bi-directional, enabling on-board software to be updated remotely from a control room or mobile tablet.
Paul Summers, Lead BEV Engineer, Miller Technology, said: “The technology in the Relay creates a game-changing vehicle. The unique BMS battery management system and cooling/temperature monitoring process offers a vehicle at the top of its game that is environmentally friendly and the safest, most efficient vehicle of its kind available today.”
The company is currently expanding the facility and modifying the flow sheet to refine third party cobalt hydroxide intermediate product
The revitalization is being funded from First Cobalt's $14 million treasury as the company's debt financing process progresses
Corp ( ) ( ) has said it is on schedule to have its recommissioned battery materials hydrometallurgical refinery north of Toronto complete in 4Q 2022.
The First Cobalt Refinery facility operated from 1996 to 2015, producing cobalt, nickel, copper and silver products. The company is currently expanding the facility and modifying the flow sheet to refine third-party cobalt hydroxide intermediate product into high purity, battery grade cobalt sulfate suitable for the electric vehicle market.
The low carbon footprint facility remains on schedule for commissioning at which time it will become the only refiner of battery-grade cobalt sulfate in North America and the second largest outside of China.
First Cobalt noted that the recommissioning of plant utilities has been ongoing, including regulatory inspections and maintenance of electric power supply systems as well as inspection and maintenance of main water supply piping and pumping systems. Additionally, Soderholm Maritime Services mobilized a four-person diving crew to inspect existing lake water intake screening which feeds the main supply water pumping and piping network to the refinery.
Geotechnical drilling is also underway to gather analytical information for an enhanced design of the foundations for the new solvent extraction building, cobalt sulfate crystallizer building addition and the effluent treatment facility.
Improvements to the refinery access road have also been completed to allow for the heavier traffic of transport trucks.
First Cobalt is in receipt of a water permit and awaits two remaining permit amendments - an air/noise permit and industrial sewage works permit; and site closure plans have been submitted to regulators for review, with initial feedback received.
The revitalization is being funded from First Cobalt's $14 million treasury as the company's debt financing process progresses through the technical due diligence phase.
"Being located in Canada's largest mining and mineral processing corridor has allowed us to build a strong project team, most of whom are local and will remain with First Cobalt through commissioning and into operations," Mark Trevisiol, First Cobalt's vice president of Project Development said in a statement. "We continue to build the refinery expansion utilizing much of the existing physical asset. The equipment and processes selected are designed around our feedstock using known chemical processing methods employed in various other refining operations around the world."
A round of preliminary discussions have been held with government officials on the creation of a Battery Park on site, similar to the Harjavalta Industrial Park in Finland. As part of this strategy, First Cobalt envisions refining nickel and cobalt, in addition to recycling black mass from spent lithium-ion batteries.
"This is the first major battery-grade cobalt sulfate refinery to be built outside China in over 20 years, so this is not only an exciting project for us but also for the Western battery supply chain. Cobalt prices are up more than 20% over the past four weeks and we are witnessing stronger interest in offtake contracts as the battery supply chain shifts its focus from Europe to new investments in North America," Trevisiol added.
Contact the writer at georgia@proactiveinvestors.com
Follow her on Twitter @MissInformd
Hydrogen is the most common element in nature. It is estimated to make up 75% of the mass of the universe. Except for that contained in air, it is primarily stored in water in the form of a compound, and water is the most widely distributed substance on earth.
Hydrogen has the best thermal conductivity of all gases - i.e. ten times higher than most of them - and it is therefore an excellent heat transfer carrier in the energy industry.
Hydrogen has good combustion performance, rapid ignition, and has a wide fuel range when mixed with air. It has a high ignition point and rapid combustion rate.
Except for nuclear fuels, the calorific value of hydrogen is the highest among all fossil and chemical fuels, as well as biofuels, reaching 142.35 kJ/kg. The calorie per kilogram of hydrogen burned is about three times that of gasoline and 3.9 times that of alcohol, as well as 4.5 times that of coke.
Hydrogen has the lightest weight of all elements. It can appear as gas, liquid, or solid metal hydride, which can adapt to different storage and transport needs and to various application environments.
Burning hydrogen is cleaner than other fuels - besides generating small amounts of water - and does not produce hydrogen azide as carbon monoxide, carbon dioxide (harmful to the environment), hydrocarbons, lead compounds and dust particles, etc. A small amount of hydrogen nitride will not pollute the environment after proper treatment, and the water produced by combustion can continue to produce hydrogen and be reused repeatedly.
Extensive use practices show that hydrogen has a record of safe use. There were 145 hydrogen-related accidents in the United States between 1967 and 1977, all of which occurred in petroleum refining, the chlor-alkali industry, or nuclear power plants, and did not really involve energy applications.
Experience in the use of hydrogen shows that common hydrogen accidents can be summarized as follows: undetected leaks; safety valve failure; emptying system failure; broken pipes, tubes or containers; property damage; poor replacement; air or oxygen and other impurities left in the system; too high hydrogen discharge rate; possible damage of pipe and tube joints or bellows; accidents or tipping possibly occurring during the hydrogen transmission process.
These accidents require two additional conditions to cause a fire: one is the source of the fire and the other is the fact that the mixture of hydrogen and air or oxygen must be within the limits of the possibility of fires or violent earthquakes in the local area.
Under these two conditions, an accident cannot be caused if proper safety measures are established. In fact, with rigorous management and careful implementation of operating procedures, most accidents do not theoretically occur.
The development of hydrogen energy is triggering a profound energy revolution and could become the main source of energy in the 21st century.
The United States, Europe, Japan, and other developed countries have formulated long-term hydrogen energy development strategies from the perspective of national sustainable development and security strategies.
Israel, however, makes warning and calls for caution.
While the use of hydrogen allows for the widespread penetration of renewable energy, particularly solar and wind energy - which, due to storage difficulties, are less available than demand - Israeli experts say that, despite its many advantages, there are also disadvantages and barriers to integrating green hydrogen into industry, including high production costs and high upfront investment in infrastructure.
According to the Samuel Neaman Institute's Energy Forum report (April 11, 2021; authors Professors Gershon Grossman and Naama Shapira), Israel is 7-10 years behind the world in producing energy from clean hydrogen.
Prof. Gideon Friedman, acting chief scientist and Director of Research and Development at the Ministry of Energy, explains why: "Israel has a small industry that is responsible for only 10% of greenhouse gas emissions - unlike the world where they are usually 20% - and therefore the problems of emissions in industry are a little less acute in the country."
At a forum held prior to the report's presentation, senior officials and energy experts highlighted the problematic nature of integrating clean hydrogen into industry in Israel.
Dr. Yossi Shavit, Head of the cyber unit in industry at the Ministry of Environmental Protection, outlined the risks inherent in hydrogen production, maintenance and transportation, including the fact that it is a colorless and odorless gas that makes it difficult to detect a leak. According to Dr. Shavit, hydrogen is a hazardous substance that has even been defined as such in a new regulation on cyber issues published in 2020.
Dr. Shlomo Wald, former chief scientist at the Ministry of Infrastructure, argued that in the future hydrogen would be used mainly for transportation, along with electricity.
Prof. Lior Elbaz of Bar-Ilan University said that one of the most important things is the lack of laws: "There is no specific regulation for hydrogen in Israel, but it is considered a dangerous substance. In order for hydrogen to be used for storage and transportation, there needs to be a serious set of laws that constitute a bottleneck in our learning curve." "Israel has something to offer in innovation in the field, but government support will still be needed in this regard - as done in all countries - and approximately a trillion dollars in the field of hydrogen is expected to be invested in the next decade."
Although the discussion was mainly about Israel's delay in integrating clean hydrogen into the industry, it has emerged that Sonol (Israel's fuel supplier ranking third in the country's gas station chain) is leading a project, together with the Ministry of Transport, to establish Israel's first hydrogen refueling station. "We believe there will be hydrogen transportation in Israel for trucks and buses," said Dr. Amichai Baram, Vice President of operations at Sonol. "Hydrogen-powered vehicles for the country - albeit not really cheap in the initial phase - and regulations promoted in the field, both for gas stations and vehicles."
Renewables account for only 6% of Israel's energy sources and, according to the latest plans published by the Ministry of Energy and adopted by the government, the target for 2030 is 30%.
This is an ambitious goal compared to reality, and also far from the goal of the rest of the countries in the world that aim at energy reset by 2050.
The authors of the aforementioned report emphasize that fully using the clean hydrogen potential is key to achieving a higher growth target for Israel.
According to recommendations, the State should critically examine the issue in accordance with Israel's unique conditions and formulate a strategy for the optimal integration of hydrogen into the energy economy.
Furthermore, it must support implementation, both through appropriate regulations and through the promotion of cooperation with other countries and global companies, as well as through investment in infrastructure, and in research and development, industry and in collaboration with the academic world.
There are countries in Europe or the Middle East that have already started green energy production projects, and finally it was recommended to work to develop Israeli innovations in the field, in collaboration with the Innovation Authority and the Ministry of Energy.
Professor Valori is President of the International World Group
Epiroc says it has won a significant order for battery-electric mining equipment from Ivanplats that will be used to develop its greenfield Platreef mine in South Africa in the “most sustainable and productive manner possible”.
Ivanplats, a subsidiary of Canada-based Ivanhoe Mines, has ordered several Boomer M2 Battery face drill rigs and Scooptram ST14 Battery LHDs (pictured).
These machines will be trialled during the Platreef underground mine’s initial development phase, Epiroc said, adding that Ivanplats has the ambition to use all battery-electric vehicles in its mining fleet at Platreef.
The order exceeds ZAR150 million ($10.2 million) in value and was booked in the June quarter of 2021.
Ivanhoe indirectly owns 64% of the Platreef project through its subsidiary, Ivanplats. The South Africa beneficiaries of the approved broad-based, black economic empowerment structure have a 26% stake in the project, with the remaining 10% owned by a Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation, and Japan Gas Corporation.
The Platreef 2020 feasibility study builds on the results of the 2017 feasibility study and is based on an unchanged mineral reserve of 125 Mt at 4.4 g/t 3PGE+Au, project designs for mining, and plant and infrastructure as in the 2017 study; except with an increased production rate from 4 Mt/y to 4.4 Mt/y, in two modules of 2.2 Mt/y, for annual production of more than 500,000 oz of palladium, platinum, rhodium and gold; plus more than 35 MIb of nickel and copper.
The initial plan is to start at a mining rate of 700,000 t/y before scaling up. An updated feasibility study on the plan is expected to be published before the end of the year.
Helena Hedblom, Epiroc’s President and CEO, said it was “encouraging” that Ivanplats is considering going all battery-electric at Platreef.
“Battery-electric equipment is increasingly embraced by mining companies as it provides a healthier work environment, lower total operating costs and higher productivity,” she said. “The technology is now well established, and Epiroc is driving this change toward emissions-free mining.”
Marna Cloete, Ivanhoe Mines’ President and CFO, said: “We want to be at the forefront of utilising battery electric, zero-emission equipment at all of our mining operations. This partnership with Epiroc for emissions-free mining equipment at the Platreef Mine is an important first step towards achieving our net-zero carbon emissions goals while mining metals required for a cleaner environment.”
Boomer M2 Battery face drill rigs and Scooptram ST14 Battery loaders are built in Sweden, and are automation-ready and equipped with Epiroc’s telematics solution Certiq.
The equipment will be delivered early to Platreef in 2022. Epiroc will also provide on-site operator and maintenance training to Ivanplats, it said.
Epiroc intends to offer its complete fleet of underground mining equipment as battery-electric versions by 2025, and its full fleet for surface operations as battery-powered versions by 2030.
While the EV boom has been growing for years, 2021 could be the year electric starts to take over everything.
And it could happen much sooner than most people realize, as some of the biggest names are already hopping on board.
Amazon has already started making deliveries with electric vans in Los Angeles, as they’ve agreed to purchase 100,000 vans from EV startup, Rivian.
Rivian
The United States Postal Service just signed a 10-year, multi-billion dollar contract with Oshkosh Defense to produce thousands of electric mail trucks.
And United Airlines just placed an incredible $1 billion order with EV manufacturer, Archer, for a fleet of electric air taxis.
Plane
Legacy automakers are all making the shift too, rolling out their line of electric vehicles one by one.
Ford is set to double their investment in EVs to $22 billion, and they’re planning to release their electric version of the Mustang and the F-150, the most popular vehicle in the U.S.
Volkswagen is calling their 2021 electric crossover, the ID.4, “the most important new Volkswagen debut since the Beetle.”
And General Motors has even announced they’ll stop making gas-powered vehicles altogether by 2035.
Now, Biden has even announced plans to transition all government fleet vehicles to EVs.
This electric revolution has already led to monster gains for EV companies throughout 2020.
The EV van startup, Workhorse, saw gains of over 551%...
Tesla’s shares shot up a massive 740%...
And Blink Charging soared for incredible 1,740% gains last year.
Now, many investors are looking ahead for the next big thing in the EV markets.
And one Canadian company in EV related business has seen its momentum building steadily over the last year.
Facedrive (TSXV:FD,OTC:FDVRF) has been acquiring key pieces left and right, adding them to their electric ecosystem alongside their signature ridesharing service.
With these acquisitions, they’ve brought the EV boom into food delivery, car subscriptions, and more.
And now that Facedrive has announced a major government investment in their technology, their business could be set to take off in 2021.
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Here are 3 reasons why you should be paying attention to Facedrive:
1 - Bringing EVs to the Gig Economy
Many of the biggest EV stories of late have come from either the automakers rolling out new models or companies working on building out the infrastructure...
But Facedrive is taking a different approach.
Instead, they’re using the cars those automakers have already made and turning them into an entire EV-related ecosystem.
So just like Uber has built their $96 billion business off leveraging cars they never manufactured, bought, or sold…
Facedrive connects customers looking to hail a ride, providing an eco-friendly solution.
Their model is simple.
When customers request a ride, they get their pick between riding to their destination in a standard gas-powered car, a hybrid or an electric vehicle (for no extra charge to them).
Then Facedrive’s algorithm crunches the numbers, setting aside a portion of the fare to plant trees, offsetting the carbon footprint from the ride.
Through next-gen technology and partnerships, they’re bringing EVs into the gig economy and making a splash.
That’s because Facedrive has also added a food delivery service, which has taken off since so many have been stuck at home during global lockdowns.
Today, they’re delivering over 4,100 orders per day on average. And after growing to 19 major cities, they plan to expand to more cities throughout the U.S. and Canada soon.
But they’ve also gone beyond applying EVs to the gig economy and are offering a way for people to get behind the wheel themselves without the usual sticker shock.
2 - Reinventing The Standard Model
At this point there’s no question there’s a growing demand for EVs from consumers, as this trend has spread from Europe and Asia and through North America.
And almost 3 out of 4 younger buyers even say they’re willing to pay higher prices to own an electric vehicle.
But with Facedrive’s acquisition of Steer, you can get the benefits without the large upfront cost.
Facedrive (TSXV:FD,OTC:FDVRF) recently acquired the EV subscription company from the largest clean energy producer in the United States, and they’re aiming to change the way people think about using EVs.
Steer has combined the Netflix subscription model with the EV boom to flip the traditional car ownership model on its head.
FD
With Facedrive’s acquisition of Steer, customers pay a simple monthly fee like with Netflix, and they get access to their choice of EVs from a fleet at their disposal.
So they can borrow one whenever they need it instead of buying an EV outright - and at a fraction of the cost.
They’re up and running in the Washington D.C. market already…
And they’ve seen so much success there that they’ve decided to expand further north, to roll out the service in Toronto as well.
With two of the largest metro areas in North America in the mix, Facedrive has started paving the path for a completely unique way to save drivers money in the EV boom.
But their biggest announcement recently came thanks to their willingness to think outside the box and serve the most pressing need we’re seeing today.
3 - Taking On The Biggest Challenges
While Facedrive (TSXV:FD,OTC:FDVRF) has been busy helping bring EVs to mainstream use in creative ways, they’ve also found a way to help address the issue we’ve all been facing for the last year.
By partnering with the University of Waterloo, they’ve created a wearable contact tracing technology called TraceSCAN.
Trace
It’s designed to help alert those without cell phones after they’ve been in contact with someone who’s tested positive for COVID-19.
That’s great news for those working in schools, airports, mining, long-term care facilities, and more.
And the demand for TraceSCAN has surged in recent months, as businesses work to open safely and responsibly.
Facedrive has now signed an agreement with Canada’s largest airline, Air Canada, to use this breakthrough technology.
They’re also in discussions to continue TraceSCAN’s growth with major multinational corporations.
But perhaps the most exciting news came from a government announcement in Canada just weeks ago.
In February, the Ontario government announced they’re investing $2.5 million to help speed up the deployment of TraceSCAN to more users.
This means TraceSCAN’s technology has gotten another vote of confidence in their innovative technology... to the tune of millions from the government.
As governments and businesses around the world are doing whatever they can to stop the spread of the virus, this major announcement could help bring attention to Facedrive’s TraceSCAN technology…
Applying more pressure to other organizations and governments to act responsibly and start investing more seriously in contact tracing technology.
Setting Up For Electric Everything in 2021
As 2021 heats up, we’re seeing that the EV boom isn’t just limited to manufacturing sedans anymore.
It involves building an entire electric ecosystem and re-imagining what transportation looks like on all fronts.
That’s why Facedrive aims see their growth wave continue as they bring EVs to ridesharing, food delivery, and beyond.
Here are a few other companies who could profit in the electric future:
Tesla (NASDAQ:TSLA) is a company that has redefined the automotive industry with their electric cars. The Tesla Model S was one of the first fully electric vehicles on the market and it's still one of the best. If you're wondering if an all-electric car is right for you, read this blog post to learn more about what makes Tesla different from other EV manufacturers.
Tesla has been one of the hottest stocks on the market for the past two years. And that’s largely thanks to its CEO and hypeman, Elon Musk. As a visionary in the tech world, Musk built his empire on PayPal and then pivoted to a cause closer to his heart, Tesla. Musk has had his eye on prize long before the green energy hype started building. Tesla isn’t just about cars, however, it’s diving head first into the battery market, as well. And by extension, could completely transform renewable energy as we know it. Tesla’s battery technology is a game-changer because batteries will be the first big step towards decentralized electric grids, another innovation fueled by the dramatic rise of blockchain technology, another cause that Musk is passionate about.
https://finance.yahoo.com/news/future-transportation-ev-stocks-could-230000424.html
[Gettyimages Bank]
SEOUL -- South Korea has formed a consultative group to promote the development of green ammonia technologies. The group will research and develop the production, transport, extraction and utilization of green ammonia that does not emit any greenhouse gases during production.Because hydrogen has a very low volumetric energy density, transporting hydrogen in gas or liquid forms is not very efficient. Hydrogen is extremely flammable when it is mixed with very small amounts of air. Because of the dangers of explosions, many people feel uncomfortable about hydrogen fuel stations in urban residential areas.Ammonia, a composite of one nitrogen atom and three hydrogen atoms, plays a vital part in a hydrogen supply system. Hydrogen is created into ammonia for transport. Ammonia is stable in a liquid state at room temperature and has a much higher energy density than hydrogen. When tanker trucks carry ammonia to local hydrogen extraction facilities, ammonia is broken down into nitrogen and hydrogen. Hydrogen is stored inside a pressurized tank to fuel vehicles and power plant turbines.The Ministry of Trade, Industry and Energy said in a statement on July 15 that a consultative body has been formed to promote green ammonia technology. The group is comprised of research institutes and companies such as Doosan Fuel Cell, the hydrogen fuel cell wing of South Korea's Doosan Group, Hyundai Motor and POSCO."Currently, about 95 percent of hydrogen fuel is produced with byproduct gas generated at factories such as steel mills. The other five percent is extracted from natural gas. It is vital to research and develop green ammonia technology to efficiently produce and transport hydrogen," Bae Joon-hyung, a ministry official in charge of novel energy business, told Aju Business Daily.Through the consultative body, South Korea will establish a value chain that covers the production, transport, extraction and utilization of green ammonia. "Zero-carbon green ammonia will play a vital role in the future net-zero carbon era," the ministry said, adding the body will also set new safety standards for the green ammonia value chain.
World leaders are pondering unprecedented moves to combat global warming by speeding up the transition to clean tech — but they're also learning more about the potential downsides of those changes.
Why it matters: The changes will be needed to avoid the most dire climate scenarios. But there are potential environmental, human rights, and geopolitical risks to shifting how we get around, the way the electric grid operates, and how everything from cement is made to buildings are constructed.
What they're saying: "It's important to recognize that decarbonizing our economy will not be small and beautiful; replacing all of our fossil fuel infrastructure with clean energy will be big and messy," Zeke Hausfather, director of climate and energy at the Breakthrough Institute, told Axios via email.
"Getting to net-zero [emissions] by 2050 will require building a huge amount of new things incredibly quickly, and will entail lots of conflicts with some traditional environmental priorities."
The big picture: Perhaps the best-known problem companies and countries are facing is how to source the critical minerals needed for batteries that will be used to power electric cars, planes, energy storage devices, and more.
Mining for these minerals on land — including cobalt, lithium, manganese and graphite — can cause pollution and are often unsafe. In some places, like in China and the Congo, it can involve forced or child labor.
involve forced or child labor. Efforts are underway to consider how to mine the seabed for rare Earth minerals, but here too, there's potential for environmental destruction — in this case, a danger to sea life.
The minerals are needed for electric vehicle batteries, but they're also in demand for other critical projects. These include the construction of vast arrays of wind turbines and solar photovoltaic farms.
Cleanly and ethically producing batteries is far from the only challenge facing countries as they move to decarbonize.
Other technologies also threaten biodiversity by extracting resources and taking up large amounts of land — including biomass energy with carbon capture and storage, known as BECCS. This involves extracting energy from biomass, such as certain crops grown for this purpose, and capturing and storing the carbon.
Mining for critical minerals is also more energy intensive than mining for bulk metals — which means they could actually increase carbon emissions as demand grows.
as demand grows. Right now we're hurtling toward an economy that will be far more dependent on a steady supply of these materials, but they're not evenly distributed worldwide, presenting geopolitical challenges. For example, the vast majority of the world's supply of refined cobalt comes from China, and China produces the most rare Earth minerals overall.
the vast majority of the world's supply of refined cobalt comes from China, and China produces the most rare Earth minerals overall. The U.S. is trying to mine more rare Earth minerals domestically or secure additional supplies abroad.
How it works: Since 2010, the average amount of minerals needed for a new unit of power generation has increased by 50%, according to an IEA report published in May.
The IEA found that a scenario in which the world reaches net zero carbon emissions by 2050 "would require six times more mineral inputs in 2040 than today."
What's next: The IEA warned that there need to be "broad and sustained efforts" to improve the environmental and social performance of mineral supply chains.
The report also recommends more recycling programs and stronger environmental and human rights standards that help steer economic rewards to responsible suppliers.
The bottom line: The decisions we make now to invest in new clean energy technologies and reduce greenhouse gas emissions will dictate how much warming-related disruption and damage we endure, and any associated clean tech complications we will experience during the next several decades.
ASX-listed Element 25’s maiden shipment of manganese concentrate from its Butcherbird operation in Western Australia’s southern Pilbara region has left Port Hedland, only a little over a year since the company posted its initial project pre-feasibility study. The company not only graduated to manganese producer status at a cracking rate but also achieved the milestone having spent just $17 million on the capital cost of construction to get Butcherbird up and running.
Perth-based Element 25 says loading of about 27,000 tonnes of “high quality” Butcherbird manganese concentrate aboard a Handymax-size vessel was the culmination of a tireless effort by its construction and operations teams, with the ship departing Utah Point bulk handling facility yesterday.
The first commercial manganese concentrate cargo is heading for the company’s offtake partner OM Materials’ smelter in China.
OM Materials, a wholly owned subsidiary of Singapore-based and ASX-listed vertically integrated manganese and ferroalloy group OM Holdings, has entered into a take-or-pay agreement to buy all of the manganese concentrate Element 25 expects to produce across the first five years of “stage one” production totalling about 365,000 tonnes per annum.
It has been a testament to Australian ingenuity, persistence and hard work that Element 25 has managed to achieve this feat in such a short period of time with a pre-feasibility study completed only 14 months ago.
After thousands of man hours, multiple layers of permitting, engineering drawings, contracts, financing activities, and a healthy dose of passion and toil stage one of our project has come to life.
According to Element 25’s well-honed second pre-feasibility study or “PFS” released late last year, the Butcherbird open-pit mining and beneficiation operation about 130km south of Newman is predicted to churn out average free cash flows before tax of $39.6 million a year over the first five years of manganese concentrate production under the stage one base case.
Management says the company will now quickly revert to advancing the proposed “stage two” expansion of Butcherbird involving a potential doubling or trebling of plant throughput within 12 months of commissioning of stage one.
Element 25’s PFS mark II featured expansion scenarios including 590,000 tonnes per annum of manganese concentrate production and 852,000tpa of manganese concentrate production corresponding to increases in plant throughput from stage one’s 1.3 million tonnes per annum to 2.6Mtpa or 3.9Mtpa, respectively.
The updated PFS shows pre-tax free cash flows from Butcherbird in turn swelling to $60.2 million a year or $78.8 million a year assuming the higher throughput levels.
Element 25, which has a market cap of about $329 million, is also looking at the prospect of producing high-purity lithium-ion battery-grade manganese sulphate or “HPMS” on the back of subsequent stages of project development.
Mr Brown said: “We fully intend for this to be the first step in a multi-stage growth journey for this world-class manganese project, with the expansion of concentrate production as part of our stage two plans to be followed by developing the processing infrastructure to produce battery-grade zero carbon manganese products for the lithium-ion batteries which will power the electrification of the global vehicle fleet.”
Manganese is becoming an increasingly important ingredient for electrical vehicle or “EV” batteries in light of potential constraints of nickel and cobalt supply, according to the company, which sees this prompting battery manufacturers to consider high-manganese cathodes to produce the cathode material required by the EV industry in coming years.
Element 25 suggests it is ideally placed to feed the predicted growth in demand, with flow sheet development work it has carried out over the past couple of years pointing to Butcherbird ores being amenable to a simple, unique, ambient temperature and atmospheric pressure leach process, resulting in an efficient extraction of the manganese into solution, the key requirement for the “cost effective and sustainable production of HPMS”.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
Construction of the world’s first commercial small modular reactor project (SMR) will begin on July 13, 2021 in Hainan Province. [Photo/Xinhua]
Construction of a small modular multi-purpose nuclear reactor for ACP100 technology in Changjiang, Hainan Province began on Tuesday.
The Changjiang project was the world’s first commercial modular small reactor on land to reach the construction stage, said its operator China National Nuclear Corp.
The ACP100, also known as the Linglong One, is a small nuclear reactor technology. The 125-megawatt pressurized water reactor (PWR) design makes the system fit for power generation, heating, steam generation or seawater desalination.
When completed, it can produce 1 billion kilowatt hours of electricity each year and meet the needs of 526,000 households, CNNC said.
An analyst said the project will play a key role in ensuring clean energy supplies to the Hainan Free Trade Port while driving the country’s nuclear innovation and development.
China is already a world leader in small modular reactor technologies.
“Small reactors that have been innovated by China have the advanced features of a passive safety design that can limit leaks in the envelope in major accidents,” said Wei Hanyang, an electricity market analyst with research firm BloombergNEF.
“Because of its small size, the boundary of the Linglong One impact area can be as small as the facility area, providing much greater flexibility and feasibility for installing reactors in populated or industrial parks.”
Linglong One stands for a new type of nuclear reactor that can be operated with a high degree of safety, lower costs and flexibility in terms of power and size.
It can be adapted to power plants in demanding locations. It was the first small modular reactor to pass a safety clearance by the International Atomic Energy Agency in 2016.
The small reactor technology has independent intellectual property rights that have been developed by CNNC for more than 10 years, the company said. The technology itself is another major achievement for CNNC, known for its third generation nuclear reactor called the Hualong One.
Popularization and application of the commercial modular small-scale reactors on land can significantly reduce fossil fuel consumption in China and promote energy saving and reduction of CO2 emissions, the company said.
At the end of June there were 51 nuclear power plants in China, 19 of them under construction, including the Changjiang project.
The company recently appointed Peter Venn as a non-executive director, Ben Jones as group consultant geologist and Luke Timmermans as senior project manager - Earaheedy Project.
On July 12, Rumble moved to sole ownership at Braeside Zinc-Lead Project in WA's East Pilbara region after securing two exploration tenements.
( ) (FRA:20Z) directors have demonstrated their confidence in the company’s zinc-lead strategy by participating in a recent placement.
The company received firm commitments from new institutional and significant sophisticated investors for a capital raising of $40.2 million on April 28 to fast-track the advancement of its major zinc-lead discovery at the Earaheedy Project.
Rumble is now well-funded to fully scope the discovery, which will include a scaled-up diamond core and RC drilling program set to kick off over the coming weeks and begin initial metallurgical test-work and other studies.
Change of director interests
Non-executive director Matthew Banks acquired a total of 1 million shares spilt equally between two indirect interests and with a total value of $500,000.
This increased the holding in one of these interests to 6.5 million and in the other to 3.5 million shares while he also holds 7.5 million in another indirect interest along with 3.25 million in a direct interest.
Fellow non-executive director Michael Smith also outlaid $500,000 to acquire 1 million shares spilt between two indirect interests, increasing the total held in the first interest to 5.5 million with 14.5 million held in the second.
These purchases were approved by shareholders at a general meeting of the company on June 17, 2021.
Sole owner at Braeside
The ASX-lister has recently consolidated its holding at the Braeside zinc-lead-silver-copper play, which hosts a series of lucrative prospects over a 60-kilometre-long mineralised system in the Pilbara region of WA.
Rumble moved to 100% ownership at the project that also hosts copper and silver after it snapped the remaining stake in two exploration tenements.
The company's latest acquisition now covers 670 square kilometres and comprises four granted exploration licences.
Chinese farmers have sharply increased corn planting this year to cash in on demand-fuelled record prices, a trend that is likely to cool the country’s recent rampant appetite for imports heading into 2022.
The expansion, which comes mainly at the expense of soybeans and other crops including sorghum and edible beans, would boost China’s maize output in 2021/22 by at least 6 per cent, according to market participants.
That will likely ease a repeat of last year when strong feed demand from the hog sector propelled China’s corn use beyond local production and sparked a 26-million tonne import spree that turned the world’s largest grain producer into the top corn buyer.
“I’m going to grow corn on all my land this year. No more other stuff,” said Li, a farmer in the northern Hebei province who last year grew millet on about one third of the 300 mu (20 hectares) of land he manages.
“Corn prices jumped so high last year. Profits would be good,” said Li, who declined to give his full name.
Consistent and accurate data on China’s crop footprints is hard to come by, especially following the unexplained suspension of Beijing-based agriculture information provider Cofeed. The private consultancy, which many in the market regarded as the most comprehensive supplier of information on grains and oilseeds in China, ceased updating data in April.
With Cofeed offline, and other consultancies reluctant to diverge their crop views too far from government estimates that are often considered conservative, market participants have become increasingly reliant on anecdotal evidence for nearer-term readings on acreage shifts.
JCI has forecast a 6.2 per cent rise, around 14.9 million tonnes, in corn output in 2021/22 to 253.9 million tonnes, the highest in four years. Based on surveys among farmers and other industry players like seed sellers, JCI estimates corn acreage expanding by 3.9 per cent to 42.0 million hectares.
“Corn prices are high and benefits are good. People still think there will be a corn shortage (this year) while livestock farming is recovering,” said JCI analyst Rosa Wang.
“Farmers have very high enthusiasm in growing corn. The government also encourages more planting of corn.”
While the JCI projections are on par with and slightly above the 3.96 per cent and 4.9 per cent rises in acreage and output respectively by China National Grains & Oils Information Center, a government think tank, other forecasters - and farmers themselves - say they are too conservative.
Huatai Futures, a major futures brokerage that conducts farmer planting surveys in China, forecasts a 14.5 per cent rise in output and a 6.2 per cent rise in acreage.
In the northeastern province of Heilongjiang, the country’s top corn and soy grower, farmers have planted 27 per cent more corn than a year ago, said Zhang Zhidong, analyst with Huatai Futures.
JCI estimates corn output in Heilongjiang will soar 20 per cent from a year ago to 36.65 million tonnes in 2021/22.
Import drop
China has long restricted the import of corn via a system of low-tariff quotas, historically totalling around 7 million tonnes annually.
The surge in benchmark Dalian corn prices last year, however, outstripped international prices by so much that importers could still bring in international corn, pay the full tariff and make a profit.
Key exporters who have benefited from China’s corn import binge include the United States and Ukraine.
Amid fears of food inflation, Beijing has supported the corn planting drive in key grains hubs, reversing a years-long policy stance of encouraging growers to diversify away from maize after officials ended a costly corn stockpiling scheme and sold off mammoth reserves.
The resulting corn acreage increase “should weigh on prices and reduce China’s need to import a bit,” said Darin Friedrichs, senior analyst at commodity brokerage StoneX, which expects 2021/22 corn imports to fall to 15 million tonnes.
The US Department of Agriculture’s China attache expects 2020/21 imports to slip to 20 million tonnes, versus the USDA official estimate of 26 million tonnes, on a drop in international corn’s price competitiveness and higher local production.
According to JCI, corn imports could hit 27 million tonnes, down from its estimate of 30 million tonnes last season.
Soybean curb
Corn’s gains come mainly at the expense of soybeans, which could have the converse effect of increasing imports of the legume, which comes primarily from the United States and Brazil.
The US Department of Agriculture is projecting China’s soybean imports at 103 million tonnes in the 2021/22 season, up from 100 million tonnes in 2020/21.
“We have increased corn planting acreage by 25 per cent, which means a 25 per cent fall in soybean acreage,” said farmer Liu, who jointly manages around 1,700 hectares in Heihe, a traditional soybean stronghold in Heilongjiang.
Another farmer, Han, who manages more than 750 mu of land in neighbouring Inner Mongolia, has replaced all soybean acreage, about 80 per cent of the land he manages, with corn this year, betting on “bullish corn prices.”
Back in Hebei, Mr. Li is relieved he can go back to growing corn after stints growing soybeans and millet in the past few years.
“We don’t have much experience growing other crops anyway,” he said. “We used to always grow corn after harvesting wheat. For years and generations, it has been mostly like this.”
India’s cotton ending stocks could be lower than 75 lakh bales (170 kg each) in the current season to September as domestic demand has picked up. But some estimates are pegging them higher than 100 lakh bales against a record 120-plus lakh bales last season.
“Cotton closing stocks could be 70-80 lakh bales but they will not definitely be as high as last year,” said Cotton Corporation of India (CCI) Chairman-cum-Managing director Pradeep Kumar Agarwal.
Cotton output for 2020-21 revised downwards to 356 lakh bales
“Cotton consumption seems to be increasing. However, we go by the figures put out by the Committee on Cotton Production and Consumption (CCPC) in the last meeting,” he said.
CCI’s carryover
CCI, which had nearly 207 lakh bales of cotton stocks, could be left with 18 lakh bales by the end of the season, the CMD said, adding that most of the sales were meant for domestic consumption.
Some trade experts expect mills’ consumption to top 300 lakh bales, though Southern India Mills Association (SIMA) Secretary-General K Selvaraju said the shutdown due to Covid pandemic could lower the offtake below CCPC projections.
In its January 25 meeting, the CCPC estimated domestic consumption at 330 lakh bales, with mills’ offtake at 286 lakh bales. “Spinning mills’ consumption could be lower than 270 lakh bales as the shutdown has affected operations,” the SIMA official said.
Cotton exports top last season’s shipments
The Cotton Association of India (CAI), the apex body of cotton traders, pegged domestic consumption at 325 lakh bales at its meeting last month, with mills’ demand pegged at 282 lakh bales.
Lower arrivals
“I see domestic consumption at 360 lakh bales, though, initially, we thought it could be 350 lakh bales due to Coronavirus. We are not seeing any rise in arrivals of stocks. Where have these stocks gone if they have not been exported? The only conclusion is that consumption has increased,” said Rajkot-based Anand Poppat, a raw cotton, yarn and cotton waste trader.
It would be reasonable to project domestic consumption at 355 lakh bales, he said, adding that he expects the ending stocks to be around 58 lakh bales.
The CCPC had projected ending stocks at 97.95 lakh bales, while the CAI pegged it at 94 lakh bales.
The projections are based on their production estimates for the current season. The CCPC pegged the output this season at 371 lakh bales, and the CAI at 356 lakh bales. Poppat estimates cotton production at 360 lakh bales. (See table for last season’s comparative figures)
Export demand
The other reason for lower ending stocks this season is export demand. “Currently, 67 lakh bales of cotton have been exported. I expect exports to be higher than 72 lakh bales,” said Rajkot-based Poppat.
CCI head Agarwal said cotton exports would exceed 70 lakh bales and the current shipments were competitive globally.
“Our best quality cotton is currently quoting at ₹53,000 a candy (356 kg). But we are also providing fair average quality cotton to Bangladesh at ₹46,000-49,000,” said Poppat.
“In the last few months, Indian cotton has bridged the gap with the prices of global cotton. Earlier, due to Coronavirus, our cotton was priced lower,” said Agarwal.
Poppat said Indian cotton, mainly Shankar-6 — the benchmark for exports, is quoted at US cents 90-97 a pound (₹53,000-57,200 a candy) cost and freight, compared with 88.07 cents (₹51,900) at the Intercontinental Exchange (ICE), New York, which is free-on-board rate.
Bangladesh is the biggest buyer of Indian cotton with Vietnam and China being the other major buyers, Agarwal and Poppat said.
Both, however, do not expect much of an impact from the reports of lower sowing till July 9. They expect the planting to pick up momentum soon
KUALA LUMPUR (July 13): Despite the stronger export growth, research houses and investment banks are maintaining their "neutral" calls on the plantation sector as the country recorded the fourth consecutive monthly rise in palm oil inventory with domestic consumption shrinking.
They also projected the crude palm oil (CPO) price to hover between RM3,000 and RM4,000 per tonne.
Kenanga Research projected the crop to face headwinds such as price volatility with the environmental, social, and governance (ESG) factors continuing to weigh in on the sector.
It also said that the resolution of the Withhold Release Order by the United States Customs and Border Protection would be an additional share price catalyst for the plantation companies on the local bourse, which would have a spillover effect on the sector.
"Our integrated pick with defensive overall margin against the CPO price variability is Kuala Lumpur Kepong Bhd (KLK) with a target price (TP) of RM24.00. We also like Sime Darby Plantation Bhd (TP: RM4.95) as its earnings are relatively shielded by forward sales," it said.
Meanwhile, Public Investment Bank, maintaining its "neutral" call on the sector, also noted the stronger pickup in production to be downside risks to CPO prices in the second half of the year.
On the bright side, it said the ESG perception has not hampered merger-and-acquisition activities in the plantation industry.
"Both KLK and IOI Corp Bhd have recently announced the acquisitions of a substantial stake in IJM Plantations Bhd and plantation in Sabah, respectively.
"Meanwhile, TSH Resources Bhd is disposing of 3,007-hectare plantation land bank in Sabah. This reflects the long-term commitment of the big plantation players who have more ambitious plans for their core business," it said in a note today.
To recap, the nation's palm oil inventories extended their uptrend in June 2021, rising by 2.8% to record a nine-month high of 1.61 million tonnes.
Nevertheless, the number was lower than the consensus estimate of 1.69 million tonnes.
Meanwhile, the stock-to-usage ratio was unchanged at 8%.
Exports jumped by 11.8% month-on-month to a six-month high of 1.42 million tonnes, mainly driven by the growth in exports to China (+47.3%), EU (+1.1%), and Pakistan (+32.3%), although this was partially offset by the fall in exports to India (-27.8%) and the US (-45.8%).
Edible oil imports declined by 20 per cent in June in view of higher inventory in the country.
Import of edible oils in to the country stood at 0.96 million tonnes (mt) in June 2021 against 1.21 mt during May 2021, recording a decline of 20.08 per cent.
According to the data released by Solvent Extractors’ Association (SEA) of India, the import of palm oil (which includes crude palm oil and RBD palmolein) declined to 5.87 lakh tonnes (lt) in June against 7.69 lt in May — a drop of 23.66 per cent.
Import of soft oils (which includes soybean oils and sunflower oil) came down to 3.81 lt (4.43 lt), slipping by 13.88 per cent.
BV Mehta, Executive Director of SEA of India, attributed this decline in the import during June to the higher stocks in the domestic market during the period.
The stock of edible oil in the country stood at 1.98 mt as on July 1 against 1.96 mt on June 1.
Full year figures
However, Mehta said, there has been an overall growth in the import of edible oil during the first eight months of the oil year 2020-21 (November-June).
The country imported 5.14 mt of palm oil during November-June of 2020-21 compared with 4.23 mt in the corresponding period of 2019-20, registering a growth of 21.49 per cent.
The growth in the import of the palm oil during the period was due to the lower duty advantage in the country compared to soft oils, Mehta said.
Import of soft oils decreased to 3.3 mt during November-June 2020-21 against 3.84 mt in the year-ago period.
Palm oil producers such as Malaysia and Indonesia were the major suppliers of the commodity to India during the period. Malaysia was the major supplier of CPO (crude palm oil) at 2.61 mt followed by Indonesia at 2.20 mt during November 2020 -June 2021 period.
India imported 1.60 mt of crude soyabean degummed oil from Argentina; and 1.18 mt of crude sunflower oil from Ukraine, 1.33 lakh tonnes from Russia and 1.11 lakh tonnes from Argentina.
The overall import of vegetable oil (which includes both edible oil and non-edible oil) increased to 8.67 mt during the first eight months of the oil year 2020-21 as against 8.26 mt in the corresponding period of 2019-20, up by 5 per cent.
Refiners, farmers to be hit
However, SEA feels that the recent notifications by the Government will have an impact on import of palm products to India.
In a notification dated June 29, the Government reduced the import duty on CPO, RBD palmolein, RBD palm oil and others. With this, the effective CPO duty was reduced by 5.50 per cent while RBD palmolein duty by 8.25 per cent and RBD palm oil by 18.15 per cent up to September 30.
On June 30, the Government decided to allow RBD palmolein and palm oil freely till December 31.
Mehta said: “Both the notifications will have impact on import of palm products into India, detrimental to the interest of domestic refiners and oilseed growers. This will also open flood gates for import of refined oils from Nepal and Bangladesh under SAFTA agreement at nil duty, seriously hit refiners in the eastern and northern India.”
He said Indonesia and Malaysia have higher duty/levy on CPO compared to RBD palmolein. This may lead to increase in the export of refined palm oil into India in coming months at the cost of CPO, he said.
The Zacks Fertilizers industry is riding on strong demand and pricing fundamentals for major crop nutrients including phosphate and potash. The underlying strength of the agricultural market, a rally in crop commodity prices and healthy farm economics are spurring demand for fertilizers globally.
Industry players like Nutrien Ltd. (NTR - Free Report) , Yara International ASA (YARIY - Free Report) , The Mosaic Company (MOS - Free Report) and CF Industries Holdings, Inc. (CF - Free Report) are poised to gain from higher demand for fertilizers in the major markets. Factors like healthy farm income and expectations of increased planted acres are expected to drive demand globally in the near term.
Over the last two centuries, the world population has increased from one billion to 7.7 billion today. As the population keeps rising, so does food demand. Therefore, agriculture needs to become more productive and resilient to climate shocks while reducing waste and dependency on non-renewable resources.
The trend to go green is increasing, with more and more farmers are deciding to use bio-fertilisers. Laura and Guillermo are an example. They run a centuries-old family olive grove in Toledo, Spain, where they make extra virgin olive oil. When they decided to take care of the family business and start Proyecto los Aires, they did it under one condition: organic farming.
"We believed things could be done differently," says Guillermo. "Soil sustains life, and putting herbicide in it is a way to kill it. Unfortunately, bare soil erodes quickly, it doesn't have a nutrient recovery system nor a natural method of plague control," he adds. "When you add chemicals to the soil, you are more and more dependent on them, and as a side effect, you end up contaminating the environment.”
To allow the plants to grow optimally, they feed them with manure, mainly from sheep, but also from chicken, lamb and calf. “We also feed the plants through the leaves, known as foliar feeding, using amino acids, algae, folic acid and potassium,” explains Guillermo. “To treat repilo disease, a fungus that develops on the olive leaf, we apply a mixture containing five per cent of copper,” he adds. To Laura and Guillermo, organic agriculture is the only sustainable form, both for the ecosystem and the plants, to move their production forward.
Traditional fertilisers are extracted from mines or produced chemically, and are associated with environmental and health concerns. Moreover, “the EU depends strongly on non-renewable external resources, such as natural gas, phosphate rock and potash, for the supply of key fertilisers used in agriculture,” says Javier Brañas, R&D director at Grupo Fertiberia and coordinator of the EU project B-Ferst.
Factors such as a surge in the number of organic farms, increasing awareness about the need for sustainability in modern agriculture, and the rising number of initiatives by government agencies are driving the growth of the bio-fertilisers market and making more and more farmers switch to this choice.
With this goal in mind, the European project B-Ferst aims at replacing non-renewable and energy-intensive raw materials with reused bio-waste, thus greening the agricultural sector and creating a circular value chain. “This will guarantee the closure of the nutrient cycle in agriculture and will contribute to the reduction of the environmental impact associated with bio-waste accumulation and bad practices in its management,” says Brañas. “It will turn a problem into an economic opportunity by creating a real internal market for bio-based secondary raw materials in the EU,” he adds.
To give an example, the production of one of the key raw materials for traditional fertilisers, ammonia (NH3) or nitrogen oxide (NOx), is a very energy-intensive process that is responsible for about 2% of all global CO 2 emissions.
The researchers want to replace between 15 to 40% of the usual raw materials with bio-waste. The project is validating a process to recover nutrients from it and produce eight new advanced bio-based fertilisers. These also contain plant bio-stimulants with microbial and non-microbial additives to improve crop growth, and biodegradable coatings that do not produce impurities in soil and nor pollute water: “This combination with the solid bio-based fertilisers is truly innovative,” says Bañas.
The consortium claim that this will cause a 10% reduction in the carbon footprint, a cut in water and energy consumption, and an average 10% improvement in crop yield. To test the bio-fertilisers, the consortium will set up demo pilots in different geographical areas, including Spain, Italy, France, Poland and Ukraine. “The selection of five locations for the validation tests guarantees coverage of all relevant European agro-climatic zones,” explains Brañas.
Besides investigating new and valuable sources of raw materials, another intense activity is to improve the relationships between the farming sector and the bio-based industries, and make these new fertilisers available on each EU member state's market.
For most agricultural inputs, regulation is often late and not agile enough to adapt to continuous innovative products. That’s why the European Union recently had to update its legislation to cover organic fertilisers and other bio-waste-based materials.
The past Fertilisers Regulation ensured free movement for traditional fertilisers made of mined or synthetic raw materials. As a result, the ones produced from organic materials (such as animal by-products or other agricultural residual products) or recycled bio-waste could only stay in the country where they were produced. This hampered innovation and investment in the circular economy.
The new rules, which were published in the Official Journal in June 2019, will apply in full from 16 July 2022. “Organic fertilisers have now been granted access to CE marking, which allows them to be marketed and sold in all EU member States", explains Daniel Traon. He works for Arcadia, the partner dealing with the regulation issues of B-Ferst.
Such projects will help the agriculture sector move closer to accomplishing the goal set by the European Commission: a 30% reduction of non-renewable resources in fertiliser production.
Police from Ukraine just seized 9,000 games consoles and PCs in an underground and illegal cryptomine operation.
The mine was stealing over $259,300 worth of electricity per month that caused power outages within the area.
Ukraine authorities also said that it is the largest crypto mine operation discovered in the country by far.
How The Operation Was Discovered
The mine located in Vinnytsia, near Kyiv, stole hundreds of thousands of electricity every month. The illegal operation was able to mask what it has been doing from the Security Service of Ukraine, but not for long.
The operators used 5,000 computers and 3,800 electricity meters that were not using their energy consumption. T
he security service said to Business Insider, "Such illegal activity could lead to power surges and leave people without electricity."
Along with the computers and consoles, authorities also seized 500 graphic cards, 50 processors, and the proof of documents on the site's electricity consumption. Other things to take for evidence were phones, flash drives, notebooks, and more.
Police have already begun criminal proceedings regarding the theft of thermal, water, and electrical energy. The operation was run by some inhabitants of Kyiv and Vinnytsia, three hours just outside the capital.
Read More: Top 10 Cryptocurrencies Finally Bullish in the Last 24 Hours! $HEX Still Leading in Bullish Gains
Ukraine Moves to Digital
While the security service in Ukraine cracked down on more illegal mining activities, there have been reports cited by Yahoo! News that the parliamentary body, the Verkhovna Rada, recently passed a law regarding payment services.
The law passed said that the central bank's digital currency, the digital hryvnia, is now treated as cash.
The decision showed that the Ukraine government shows its enthusiasm towards making its economy digital.
So far, the digital hryvnia is still in its research and development phase. However, it seems to be investing much in it since it was created in 2018.
It was tested on a Stellar Lumens blockchain as well.
More Miners Still Exist
Recently, in another country, China has banned cryptocurrency mining, forcing miners to either flee the country or give up entirely.
Mike Huang, an operator of a cryptomining farm, says, "Many miners are exiting the business to comply with government policies ... Mining machines are selling like scrap metal."
Most miners in the country of China are already selling their machines or choose to go outside the country to continue their operation. As a result, Nishant Sharma, the founder of BlocksBrige Consulting, has said that "every mining operation outside China benefits straight away ... This is the end of an era for cryptomining in China,"
Machines that usually cost thousands of dollars were now being sold for a quarter of the cost or less in China.
Companies like BIT Mining chose to ship their mining machines to neighboring Kazakhstan and with the central government not looking to change their tone. The business might shift to a different country entirely.
However, there are still people who hope that the ban will eventually relax regardless of the firm stance the Chinese government has taken.
Read More: Crintell Technologies Disrupts the HR Technology industry by introducing Automation and AI into a Recruiter's Workflow
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Written by Alec G.
Earlier this year, Mining Technology reported on the importance of Australia’s mining sector, its meteoric rise in recent months, and how it continues to be a “bastion of stability and profitability amid the uncertain times of the Covid-19 pandemic”. Just days later, one of the world’s largest gold miners made an announcement that reinforced that.
South Africa’s Gold Fields Ltd said that it was awarding its Australian workforce a significant 6% pay rise, although it stopped short of calling it that. The news meant the company’s 1,400 strong Western Australia-based workforce could expect between A$300 and A$600 extra in their monthly pay packets, beginning in April 2021.
“This is recognition of what we’ve asked our workers to do over the past 12 months but also the phenomenal result they delivered for our company,” said Stuart Mathews, Gold Fields Australia’s executive vice president. He said that the company had asked a lot of its workers, particularly due to the pandemic and robust measures implemented by state and federal authorities.
“We asked them to have extra discipline in what they do, to really focus on safety; they changed roster arrangements for three months and we also asked people to stay on site because of the risk to the community when we had a five-day lockdown in Perth,” Mathews continued. “We’ve also had people stay in the state while their family and kids were interstate and some haven’t been home for six months because of the border situation.”
Australia’s mining boom
However, the pandemic is just half the story. The mining sector in Australia is thriving; in fact, it’s positively booming according to industry experts, who say that what we’re seeing today is reminiscent of previous industry booms.
Anecdotal evidence supports that theory. ABC News recently reported from the Western Australian city of Kalgoorlie, where business owners talked of their desperation to attract workers to the backdrop of a flourishing mining sector. Speaking to the news outlet, one butcher said: “For the industries that aren’t mine related, it’s a bit hard to compete with the good wages that those guys get.”
Deeper into the story of Gold Fields’ pay award, further evidence of the boom can be found. The company said that for Australia, it was increasing the bonus it offers to employees who successfully introduced new candidates. If new workers passed a six month probationary period, the individual who connected the two would receive a A$10,000 bonus, up from the previous A$3,000.
Mathews said: “I’m looking out my window in Perth and there’s construction going on all around me, and these people don’t need to take a mining job because they’re getting paid really well. There’s plenty of work on, they don’t need to go FIFO (fly-in fly-out); so we are going to have to look at different ways to attract workers.”
Aside from the recruitment difficulties faced by Gold Fields – and indeed its competitors too – the company had a successful year in 2020. Sadly, there were however some tragedies that now-departed CEO Nick Holland reflected on in his final quarterly message.
An accident at the company’s South Deep mine in South Africa took the life of a shaft timberman, and Covid-19 accounted for the deaths of nine other employees, eight of whom worked at the same mine.
“These are tragic losses and our heartfelt condolences go out to the family members, friends, and colleagues of these men,” Holland said. “Despite the challenges and disruptions experienced during the past 12 months, the integrity of our operations has been maintained while putting our people first.”
Strong financial performance
Holland said that Gold Fields had delivered a strong set of results for 2020, with production and costs both within the revised guidance.
In financial terms, the year was strong, with the company recording a fourfold increase in headline earnings, totalling $729m.
Normalised earning more than doubled, the company added, to $879m, while what it called “strong operational performance” and an increase in the price of gold “drove a significant increase in cash flow from operating activities less net capital expenditure, environmental payments, lease payments, and redemption of Asanko preference shares of $631m from $249 m generated during 2019”.
Operating in Australia, Chile, Ghana, Peru, and South Africa, Gold Fields said that Covid-19 only had a limited impact on its business.
Holland continued: “Overall, Gold Fields has delivered a strong set of results for 2020, with production and costs both within the revised guidance.”
He added that the impact of the pandemic on operations was limited to less than 100koz and if it weren’t for the virus the group would have “exceeded the original guidance”.
Adding renewable power to operations
Whilst the financial future of the company looks, at the least, stable, its operations are set to be transformative. The Gold Fields board gave the go-ahead to a renewable power project at its South Deep complex in May.
It is estimated that mining operations account for as much as 7% of all global carbon emissions. It certainly isn’t fair to say that the industry has not acted; innovations such as new mining technologies and the modernisation of vehicle fleets have had a major impact.
The next threshold, however, is renewable power. After being granted a license by the National Energy Regulator of South Africa, Gold Fields will begin construction of a 40MW solar power plant at South Deep mine. The $46m project will span 118 hectares, comprising 116,000 solar panels. Once operational in 2022, it is expected to generate more than a fifth of the mine’s energy requirements.
“We are the first South African mine to build and operate our own solar plant of this scale. This will ensure greater reliability of power supply and reduce the cost of electricity, which currently makes up about 13% of the mine’s operating costs,” said new CEO Chris Griffith.
“Importantly, it will reduce our carbon footprint by around 100,000 tonnes of CO2 a year, not only enhancing the sustainability of South Deep but also contributing to Gold Fields’ long-term commitment to carbon neutrality.”
This is a first for South Africa but not Gold Fields. The company already has solar and wind power at its sites in Australia and has a longstanding commitment to renewable power on the basis that its power sources must be reliable, available, cost effective, and clean.
In its 2020 results statement, Gold Fields said that environmental, social, and governance (ESG) efforts had become critical to its stakeholders, who wanted transparency on the matter. The report said: “Our ESG priorities are associated with wide-ranging objectives and strategic intents outlined in the table below. These high-level priorities and goals will be incorporated in an ESG Charter, with detailed 2025 targets to be released later this year.”
Weathering the storm
On the whole, the global mining sector has been largely resilient to the events of the last year or so. Any impact on activity has been balanced with the wider impacts the pandemic has had on the global economy. Whilst there have been financial casualties, these have been limited.
Gold Fields has seemingly weathered the storm thus far, with a lot of promise for the year ahead. Caution is still a must though; we have all seen how events can turn our world upside down almost overnight.
https://www.mining-technology.com/features/covid-19-in-a-golden-age-for-mining/
July 13, 2021
Orogen options the Spring Peak Project to Headwater Gold
Vancouver, B.C. July 13th, 2021 (TSX.V:OGN) (OTCQX:OGNRF) Orogen Royalties Inc. ('Orogen' or the 'Company') is pleased to announce it has signed an option agreement (the 'Agreement') with Headwater Gold Inc. ('Headwater') (TSX.V:HWG) for the Spring Peak gold project in Nevada, USA.
To earn a 100% interest in the Spring Peak project, Headwater will provide a cash payment of US$10,000, a cash or share payment totaling US$250,000 (subject to receipt of certain permits from the United States Forest Service), incur exploration expenditures of US$250,000 within 24 months of signing the Agreement and maintain all required underlying vendor payments and royalties.
Orogen will retain a 0.5% net smelter return ('NSR') royalty and an option to purchase an additional 0.5% NSR royalty for US$1.0 million.
'Spring Peak represents another Orogen property in the Walker Lane Trend of southwestern Nevada that will see significant exploration in 2021 as an outcome of this agreement. We look forward to Headwater's planned drilling and exploration program in August,' commented Laurence Pryer, Exploration Manager at Orogen.
The Walker Lane Trend stands out in Nevada with exceptional high-grade gold values, growing reserves and excellent discovery potential. Orogen has significant mineral interests in the Walker Lane Trend anchored by the Company's NSR royalty at AngloGold Ashanti's Silicon deposit and six other gold exploration projects, with three now under option.
About the Spring Peak Project
Spring Peak is a 435-hectare gold exploration project located in the Bodie Hills, of the Walker Lane Trend in Mineral County, Nevada. It is situated near several historical gold and silver mines including the Aurora and Borealis mines in Nevada and Bodie Mine in California (Figure 1).
The Spring Peak project features a low-sulfidation epithermal gold system with hydrothermal breccias and banded epithermal quartz veins exposed at surface where rock sampling returned up to 35 grams per tonne ('g/t') gold with anomalous pathfinder elements that coincide with a soil geochemical anomaly. The epithermal gold system is fully preserved from surface sinters to basement, contain classic banded veins and quartz after calcite boiling textures, all of which indicate exploration potential at depth.
Exploration drilling during the 1980s and 1990s consisted of vertical reverse circulation holes typically measuring less than 100 metres deep that consistently encountered anomalous gold mineralization, with assays from drill chips returning up to 1.9 g/t gold.
Recent CSAMT geophysical surveys have identified potential feeder structures for the epithermal gold system. These structures have the potential to host high-grade gold mineralization and are the principal targets for drilling that is already fully permitted (Figure 2).
Location of Orogen's Epithermal interests in Nevada
Location of Orogen's Epithermal interests in Nevada
Qualified Person Statement
All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo., Exploration Manager for Orogen. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.
On Behalf of the Board
OROGEN ROYALTIES INC.
Paddy Nicol
Gold mine production across the world will likely increase by 5.7 per cent this year, with less disruption expected from the Covid pandemic compared with last year.
According to Fitch Solutions Country Risk and Industrial Research (FSCRIR), the growth will be the fastest this year after it dropped two per cent in 2019 and 0.5 per cent last year.
Leading up to 2025, global gold mine production will remain strong with FSCRIR projecting growth at 3.2 per cent next year, 4.3 per cent in 2023, 2.4 per cent in 2024 and 3.4 per cent in 2025.
Mining down 7.8 per cent in FY’20-21
“We forecast global gold production to increase from 109.4 million ounces (moz) this year to 141.7 moz by 2030, averaging 3.2 per cent annual growth. This would be an acceleration from the average growth of 0.8 per cent over 2016-20,” the research body said in a note.
Sour note
But a sour note would be China’s gold production stagnating over the next decade after surging the last 10 years. “Declining ore grades will limit domestic investment and encourage Chinese firms to develop overseas projects,” Fitch Solution said.
This year, gold production is expected to increase by a meagre 0.2 per cent before stagnating for the rest of the decade. FSCRIR said Chinese production also faced challenges due to environmental regulations and closure of small mines.
China adopted new rules in the last few years to raise environmental requirements on solid waste from gold prospecting, resulting in the closure of a slew of gold mines and a drop in production in provinces such as Shandong, Jiangxi and Hunan.
Karnataka to build steady market for Hutti Gold Mines by partnering private jewellers
“Years of intensive gold mining have resulted in falling reserves and production halts in several areas, including Qinghai and Gansu,” the research agency said.
On Chinese firms raising investments in foreign mines, FSCRIR said that Shandong Gold had bought 50 per cent stake in the Veladero mine in Argentina from Barrick gold for $960 million.
Among other countries, Australia will witness a modest growth in mine production over the coming years as it has a strong project pipeline. Rising gold prices and competitive operating costs will help the growth, Fitch Solutions said.
Over the next nine years, Australia’s gold production will increase to 13.1 moz, from the 10.8 moz projected for this year. In particular, OZ Minerals’s second phase of development at the Carrapateena copper-gold project would yield 67 kilo ounces (koz) of gold annually during its estimated life of 20 years
Russia’s precautionary move
Russian gold production is likely to accelerate 3.8 per cent annually up to 2030, with production set to top 14 moz from the current 9.9 moz. Helping the output growth will be the precautions that Moscow will take against a possible sanction on its bank by Western countries. Banks are likely to increase their gold reserves, FSCRIR said.
A health project pipeline will also aid the trend, it said, adding that expanding US sanctions on Moscow will support Russian gold production in the short term. Fitch Solutions expects domestic demand there to continue as long as tensions with the US remain.
In the long term, a number of new projects — 21 are in the pipeline — will drive the production growth, it said.
Natalka project of Polyus Gold, which became fully operational two years ago, would be a main contributor to the growth in gold production in Russia, with a capacity to produce 420-470 koz annually. Polyus Gold is also set to develop Sukhoi Log, a large untapped goldfield that can potentially yield 1.07 moz of gold annually.
US to attract investment
Fitch Solutions said the US gold-mining sector will continue to attract significant investments in view of the country’s history of gold exploration and known precious metal deposits. Nevada, in particular, will remain a key location for exploration and development as Barrick and Newmont Goldcorp are committed to several large-scale projects there.
In particular, Barrick and Newmont have constructed a third mining shaft at Turquoise Ridge in the third quarter of 2018 and it is expected to increase annual production to more than 500 koz by 2023 at a competitive cost, FSCRIR added.
A junior mining company has just raised the stakes in our pick for the most exciting gold exploration play in Canada’s massive Quebec province.
Just weeks after a reporting a new discovery at depth (and not just of gold), Starr Peak Mining Ltd. (TSX:STE.V; OTC:STRPF) has again announced high-grade results from its ongoing 2021 drilling campaign.
And now it’s its drilling program from 20,000 meters to 40,000 meters, in a huge campaign that is fully funded.
What Starr Peak reported it found in its first discovery announcement on May 4th wasn’t just gold.
It was evidence of something that’s been eluding huge miners for a century: A VMS (Volcanogenic Massive Sulphide) deposit with rock containing multiple base metals, including zinc, copper, silver, and gold.
Now, we think it’s just been de-risked further.
The latest results released on July 6th from drilling on Starr Peak’s NewMétal property in the Abitibi Greenstone Belt—which includes the past-producing Normétal mine—just extended this play’s Deep Zone mineralized zone by 175 meters, from a vertical depth of 680 meters to almost 850 meters.
The Company reports that nearly all of the drill holes in its campaign have intersected significant mineralization.
The Deep massive sulphide zone discovered more than 650 meters vertically below the historic Normetmar open pit zone, has returned multiple zinc, copper, silver and gold rich intervals to date:
And the presence of a VMS zone gets us even more excited here, as well:
Starr Peak didn’t just release Deep Zone drilling results …
Multiple drill holes targeting the Normetmar Upper zone, which is above 400 meters, intersected wide mineralized intervals up to 20.55 meters, “indicating the presence of a significant VMS zone”.
Results like this were enough for Starr Peak to significantly expand its drill program, almost immediately.
On July 8th, Starr Peak increased its fully funded drilling program from 20,000 meters to 40,000 meters on the NewMétal project.
Now, in our view there’s no better gold exploration story out there, and we expect the news flow to pick up the sort of momentum that only a discovery of this nature can achieve.
Across its operations, the company mined 231,235 tonnes in the first quarter of the tear ended March 31, 2022, which was down 9% compared to fiscal 1Q 2021
Silvercorp said in expects to produce between 6.3 million and 6.6 million ounces of silver, and between 65.7 million and 68.9 million pounds of lead, along with 26.9 and 28.5 million pounds of zinc for the year to March 31, 2022
( ) (NYSEAMERICAN:SVM) (FRA:S9Y), the China-focused miner, has told investors it expects to meet its annual production guidance for fiscal 2022, despite a decline in output for its fiscal first quarter to end-June this year.
Silvercorp said it expects to churn out between 6.3 million and 6.6 million ounces of silver, and between 65.7 million and 68.9 million pounds of lead, along with 26.9 and 28.5 million pounds of zinc for the year to March 31, 2022.
Across its operations, the company mined 231,235 tonnes in the first quarter of fiscal year 2022, which was down 9% compared to fiscal 1Q 2021. That amounted to around 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead, and 7.2 million pounds of zinc, down 16%, 9%, 21%, and 4%, respectively compared to the year earlier period.
In terms of sales, Silvercorp sold around 1.6 million ounces of silver, 1,000 ounces of gold, 16.8 million pounds of lead, and 7.3 million pounds of zinc, representing decreases of 12%, 9%, and 20%, respectively compared to fiscal 1Q, 2021, in silver, gold and lead, but an increase of 4% in zinc sold.
The company put the decline in output mainly down to mining contracts renewal negotiations at its flagship Ying project.
The two-year mining contracts with eight contractors expired on March 31, 2021, and the parties reached a temporary two-month extension but during negotiations, some contract workers took breaks or left due to the uncertainty, it said.
The contracts were renewed for an additional two-year term in mid-May, this year.
At the Ying project, which comprises a complex of six mines, ore mined was down 18% compared to the fiscal first quarter of 2021, but ore mined at the firm's GC mine was up 10% on the year earlier period.
Silvercorp describes itself as a profitable Canadian mining company, which produces silver, lead and zinc metals in concentrates from mines in China.
Also in the statement, the company said it expects to release its first quarter results on August 5 this year after market close.
Contact the author at giles@proactiveinvestors.com
VANCOUVER, BC / ACCESSWIRE / July 15, 2021 / SNOWLINE GOLD CORP. (CSE:SGD) (OTCQB:SNWGF) (the "Company" or "Snowline") is pleased to announce Crescat Capital LLC ("Crescat") as a strategic investor in the Company as part of a C$1,000,000 non-brokered private placement of units ("Units") issued by Snowline. The proceeds of the offering will be used to advance the Ursa gold and base metals project, and fund a future 1,500 metre diamond drill programme.
"We are pleased to welcome Crescat as a strategic shareholder," said Nikolas Matysek, Chief Executive Officer and Director of Snowline. "Crescat's investment is a compelling endorsement of our Ursa gold and base metals project in the Selwyn Basin, Yukon. The 14-kilometre base metals and parallel 9-kilometre gold trends are attractive targets that we are excited to begin exploring. This programme will add another dimension to Snowline as we continue to advance our neighbouring Einarson and Rogue projects."
"Snowline has one of the highest quality portfolios of early-stage projects of any junior company I know," commented Quinton Hennigh, technical advisor to Snowline. "One recent addition is the very exciting Ursa project, a very large, profound geochemical anomaly encompassing strongly elevated gold, zinc, silver, and other metals. Underlying rocks are dominantly sedimentary, so the prospect of finding a very large stratiform or stratabound base metal system is certainly possible. But, there is also clear evidence of Tintina style gold mineralization in the immediate area, so potential for such a gold system is also possible. Part of the proceeds of this placement will be dedicated to doing basic geophysics and other ground-based work to develop drill targets and undertake drilling at Ursa. We are very excited to start work on this program this season."
Kevin Smith, Crescat's founder and Chief Investment Officer stated, "we are thrilled to help fund the Ursa exploration program and believe Snowline has perhaps the most exciting collection of gold and multi-metallic drill targets in the Yukon today. Nikolas Matysek and Scott Berdahl are a highly capable new generation management team with a strong family history in the mining industry. We expect very successful careers ahead for them."
Production from the world’s top ten copper mining companies decreased, albeit by a marginal 0.2% to 11.76 million tonnes (Mt) in 2020. The initial impact of the pandemic on the mining operations was immense, but six of the ten largest producers succeeded in increasing output in the year.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported 10.4% growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. Whilst the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2% growth in its production in 2020. The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.
Although the overall impact was minimal, declines in production were observed from Glencore (8.2%), Antofagasta (4.7%), BHP (3.9%) and Freeport McMoRan (1.3%). Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
In 2021, copper production from the top ten copper companies is expected to bounce back, rising by up to 3.8%, to reach 12.2Mt. Robust growth is expected from Freeport McMoRan, which provided 1,723.6kt of copper guidance for 2021, 18.5% higher versus 2020 output, backed by the commencement of its recently expanded Grassberg mine in Indonesia. Also, around 9.1% growth is expected from First Quantum and 5.3% higher copper cathode output is expected from Jiangxi. The growth will also be supported by production from other operating mines such as Escondida, Collahuasi, El Teniente, Cerro Verde, Buenavista and Antamina.
Related Report Global Copper Mining to 2024 – Updated with Impact of COVID-19 Get the Report Latest report from Browse over 50,000 other reports on our store. Visit GlobalData Store
https://www.mining-technology.com/comment/copper-production-to-rise-2021/
July 5 (Reuters) - Copper prices rose on Monday as data showing an acceleration in U.S. hiring boosted hopes of stronger demand for metals and a sustained recovery in the world's biggest economy.
Three-month copper on the London Metal Exchange rose 0.5% to $9,420 a tonne by 0301 GMT, and the most-traded August copper contract on the Shanghai Futures Exchange advanced 0.8% to 68,900 yuan ($10,657.39) a tonne.
U.S. companies hired the most workers in 10 months in June, raising wages and offering incentives to entice millions of unemployed Americans sitting at home, in a tentative sign that a labor shortage hanging over the economy was starting to ease.
Copper is often used as a gauge of global economic health.
FUNDAMENTALS
* Global copper smelting activity slipped in June after a rebound a month earlier as Chinese plants closed for maintenance while production of nickel pig iron jumped, data from satellite surveillance of copper plants showed.
* Chilean miner Antofagasta PLC signed contracts to supply Chinese copper smelters with copper concentrate at treatment charges of around the mid-$50s per tonne in deals covering at least half of next year, sources said.
* ShFE aluminium rose 2.2% to 19,115 yuan a tonne, nickel advanced 2.1% to 137,520 yuan a tonne and tin increased 2% to 215,820 yuan a tonne.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Most Asian stocks gained, extending the rally that took global equities to a record high after a U.S. jobs report signalled the economic recovery remained intact but didn't yet warrant any immediate withdrawal of Federal Reserve stimulus.
($1 = 6.4650 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Amy Caren Daniel)
Former BHP Global Data Strategy Lead, Coert Du Plessis, has been appointed as the Chief Executive Officer of mining technology business MaxMine.
Du Plessis commenced in the role of Chief Operating Officer of MaxMine on May 1, 2020, working with MaxMine’s management team behind the scenes over the past 12 months to successfully configure and guide MaxMine through its significant Series A funding round announced last month, the company said.
MaxMine is an automated, high-resolution data-based business reporting tool that combines advanced data acquisition technology with AI analysis to fully optimise mobile equipment and operator performance within mining and other mobile equipment-based operations, measuring performance differently and using gamification to change behaviours.
On July 1, 2021, Du Plessis was appointed Chief Executive Officer of the company.
Du Plessis commenced his professional career with global consulting firm, Deloitte, moving up the ranks to become senior partner before the age of 40. He then established and led the firm’s Western Australia data analytics practice. He then moved to BHP to accelerate the adoption of digital technologies and cultivate collaborative ways of working. His scope at BHP included the design and establishment of an Innovation Mine at BHP’s Eastern Ridge operations in Western Australia, developing the BHP Dahling Industrial IoT platform, embedding next generation digital technologies at existing operations and major new capital projects – such as Jansen – and steering the final technology investment review of the South Flank iron ore project.
Du Plessis said three things ultimately convinced him to move from BHP to take up the new roles at MaxMine:
“One, the calibre of the existing leadership team and their adaptive business mindset; demonstrated in successfully raising growth capital in a year disrupted by COVID;
“Two, generating industry leading data quality and confidence in their results, an order of magnitude better than incumbent fleet management system. It means MaxMine users transition from teams arguing about the validity of data to knowing what needs to be done next; and
“Three, the ability to over-come digital inertia and drive technology adoption with front line operators and operational leadership teams month in and month out.”
He added: “It was inspirational to see the speed at which the MaxMine team could develop these incredible technologies and develop the unique delivery approaches whilst maintaining an incredible focus on customer value.
“MaxMine has gone further than any other technology product and service I have come across in solving the challenge of delivering consistent value for mine site operations. The quality of MaxMine’s data asset sets us apart in the industry, and we believe we can apply the same operational improvement approach that allows us to enable delivery of more tonnes of ore, to also significantly reduce CO2 tonnes expelled in mining operations. Moving beyond the growing list of CO2 reduction aspirations to reductions delivered is an outcome I deeply care about.”
MaxMine Director, Robin Schleich, who is also Dupont Sustainable Solutions’ global operations director, said: “Mining companies need, and want, to partner with true industry innovators such as MaxMine to help them navigate the ramp up in digital disruption in the industry and combat growing operational cost pressures.
“Based on the significant investment last month, it is clear MaxMine provides one of the strongest platforms to drive industry productivity and emissions transformation.”
MaxMine’s outgoing CEO, Tom Cawley, will transition to Executive Chair, focusing on adjacent business opportunities for the company and setting up the board to support the company’s growth.
Australian firm Sandfire Resources has secured a mining licence from the Botswana Government for its $279m (A$364m) Motheo copper mine in the Kalahari Copper Belt.
The approval marks the final major permitting milestone need for the start of full-scale construction of the project, which is planned to be developed over a two-year period.
Sandfire plans to start mining work at the Motheo project in early CY2022 with first production scheduled in early 2023.
Having already placed orders for all key process equipment and long-lead items, the company will now start construction of the process plant and other infrastructure at the site.
The definitive feasibility study of the T3 pit at Motheo mine confirmed strong technical and economic outcomes from an initial 3.2 million tonnes per annum (Mtpa) processing capacity and T3 deposit development, the firm said.
According to the DFS, which was completed in 2020, the mine has an initial life of 12.5 years. It could annually produce 30kt of contained copper and 1.2Moz of contained silver during its ten years of operational life.
Sandfire managing director and CEO Karl Simich said: “Our vision is that Motheo will form the centre of a new, long-life copper production hub in the central portion of the world-class Kalahari Copper Belt, where we hold an extensive ground-holding spanning Botswana and Namibia.”
“Sandfire is looking forward to becoming a major long-term player in the Kalahari Copper Belt, which represents one of the last under-explored large-scale copper provinces anywhere in the world.”
The Motheo project is expected to generate around 1,000 construction jobs and 600 full-time jobs once operational.
Last month, Perenti secured a $496m contract from Sandfire to provide open-pit mining services at the T3 pit at the Motheo copper project.
https://www.mining-technology.com/news/sandfire-licence-motheo-mine-botswana/
LONDON: Pakistan does not have the right to mount corruption allegations as a defence to challenge the jurisdiction of an arbitral tribunal in the Reko Diq case, a UK judge ruled this week.
In the case, Province of Balochistan v. Tethyan Copper Company (TCC), Judge Robin Knowles of the High Court of Justice rejected Balochistan’s position in which it referred to a Supreme Court decision, saying it was not enough to demonstrate that the allegations of corruption had been raised before the tribunal. English arbitration law bars parties from raising issues before the court that were not raised during the arbitration, according to the decision.
The Balochistan government had argued that the International Chamber of Commerce (ICC) tribunal lacked jurisdiction in the Reko Diq case as the underlying agreement was void due to corruption.
For years, Balochistan has maintained that the mining company bribed government officials to get undue advantage into securing a mining licence in the province.
Balochistan govt loses bid to fight off second claim by Tethyan Copper Company
The UK judge found that although the Supreme Court of Pakistan had rendered the joint venture void, its ruling was not based on Pakistan’s allegations that the agreement was secured through bribes.
The judge said the apex court made no reference to those allegations when it found the agreement invalid.
“Descriptions of or references to corruption are insufficient: the question with which the corruption allegation is concerned is whether the Supreme Court of Pakistan found that the [agreement] and related agreements were void due to the existence of corruption,” Judge Knowles wrote.
“In my judgment, it did not. If the province has evidence relating to corruption that was not before the ICC tribunal ... then it is for the province to seek to address those matters with the arbitral tribunal; it does not make it legitimate for the province to raise them with the court as a challenge to the jurisdiction of the arbitral tribunal,” Judge Knowles wrote.
In 2019, the International Centre for Settlement of Investment Disputes (ICSID), too, had rejected Pakistan’s allegation that former Balochistan chief minister Nawab Aslam Raisani was offered a bribe of $1 million by Tethyan Copper Company in connection with Reko Diq mines in 2009.
The present case is part of the mining company’s second arbitration against Pakistan. The first was before the ICSID, in which the company secured a $6 billion award against Pakistan in July 2019.
What is Reko Diq dispute?
The TCC is a 50-50 joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile. The Reko Diq district in the southwest of Balochistan is famed for its mineral wealth, including gold and copper.
The ICSID tribunal had taken up the dispute between Pakistan and the TCC after the latter claimed $8.5bn when the mining authority of Balochistan rejected its application for a multi-million dollar mining lease in the province in 2011.
According to details available on Tethyan’s website, the Reko Diq Mining Project was to build and operate a world class copper-gold open-pit mine at a cost of about $3.3bn. The company says its 1998 agreement with the Balochistan government entitled it to the mining lease, subject only to routine government requirements.
The project stalled in November 2011 after the application was rejected. Pakistani officials say the mining lease was terminated by the government because it was secured in a non-transparent manner.
By then, the company had invested $220 million in Reko Diq. The company sought help from the World Bank arbitration tribunal in 2012, and it ruled against Pakistan in 2017, rejecting an earlier decision by the Supreme Court.
The tribunal then opted to use a formula for calculating damages for the cancelled lease based on the assumed profits Tethyan might have earned from the mine over 56 years. In July 2019, the tribunal slapped a $5.97bn award against Pakistan for denying the mining lease to the company.
The fine, including the damages award and interest, is equal to about two per cent of Pakistan’s GDP.
Immediately thereafter, the TCC had commenced proceedings for enforcement of the award. In November 2019, Pakistan had challenged the award and initiated proceedings seeking its annulment.
In March 2020, the AGP office announced that it had filed a request on Nov 8, 2019, for the annulment of the award rendered by the ICSID.
Alongside the plea for annulment, Pakistan had also requested a provisional stay on the enforcement of the award issued against the country.
Pakistan was granted the provisional stay upon initiating annulment proceedings after which a hearing to confirm the stay order took place over video link in April last year.
On Sept 16, 2020, the tribunal finally ruled in favour of Pakistan, confirming the stay on the enforcement of the award.
However, on Nov 20, 2020, the company moved a separate case in the BVI High Court for the enforcement of the award, which included attachment of the assets belonging to Pakistan International Airlines Investment Ltd, a final decision on which came out in Pakistan’s favour.
The ICSID is still considering Pakistan’s appeal against the penalty over its decision to cancel the Reko Diq mining lease for the TTC.
Published in Dawn, July 8th, 2021
Credit: RÜŞTÜ BOZKUŞ from Pixabay
Concept: Researchers from Australia’s ARC Centre of Excellence in Exciton Science (ARC) have discovered a new method that uses solar energy to detect harmful pollutants in the surrounding atmosphere. This can lead to more efficient and sustainable methods of tracking pollutants and protecting biodiversity and human health.
Nature of Disruption: ARC researchers used solar energy to detect methyl iodide, a type of toxic molecule present in certain pesticides and fumigants, which is often unnoticeable. Toxic chemicals like these are being used in a lot of farm products as well as chemical warfare agents. The researchers are using contemporary photovoltaic technology to develop solar cells that can aid in the detection of such compounds. It leverages light to classify toxins and estimate how much of each type is present in the air. The researchers created synthetic nanocrystals based on a perovskite structure using solar technology, which eventually became the basis of the detection system. The toxin in the air reacts with the fluorescent nanocrystals and changes its color depending on the material. The reaction facilitates the exchange of bromide with iodide within the nanocrystal, which results in color change. The color of methyl iodide starts out green, then shifts to yellow, orange, red, and a darker red based on its amount present in the air.
Outlook: Although the use of chemical warfare agents such as sulfur mustard is prohibited worldwide, mankind still relies on other tightly regulated chemicals in agriculture, manufacturing, and everyday lives, like fumigants such as methyl iodide, which is used to control insects and fungi. These fumigants can be toxic to humans and deplete the ozone layer if used incorrectly or in abnormal quantities. Until now, the only way to search for such fumigants was in a lab with complex, specialized instruments, which may not be feasible in real-world situations. Although some inexpensive detection methods have been attempted before, they lacked sensitivity and took too long to produce results. ARC researchers claim that the use of solar energy provides the precision and speed needed to detect methyl iodide. This type of sensing mechanism can also be extended to detect a wide variety of fumigants and chemical agents like tear gas.
This article was originally published in Verdict.co.uk
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The Miralga Creek iron ore project has secured all statutory approvals. Credit: Atlas Iron.
Mining company Atlas Iron has secured all statutory approvals required to develop the Miralga Creek iron ore project in Western Australia, enabling planned works to begin.
The Miralga Creek project, which will be an extension of the Abydos iron ore mine, is expected to create around 300 jobs.
The proposal involves the development of five open pits with an aim to extract eight million tonnes of iron ore over a period of four to five years.
It also includes the development of associated infrastructure including processing facilities, waste landforms and access roads.
The project received mining proposal approval from Western Australia’s Department of Mines, Industry Regulation and Safety while the Environment Protection Authority (EPA) approved the Environment Protection and Biodiversity Conservation Act and works approvals. As a result, the company says that ‘all primary approvals for the project have been secured and planned works can now commence’.
In a statement, Atlas Iron said: “On-site at Miralga, the biggest changes will be seen at the Abydos camp where works have been ongoing for some months to bring the camp out of care and maintenance.
“This work has been completed in a joint effort with an external construction company and Mick Shannon’s operations support team.”
Western Australia’s EPA has recommended environmental approval for the Miralga Creek mine, subject to conditions.
These conditions included managing impacts on the habitat of the northern quoll, ghost bat and Pilbara leaf-nosed bat.
Earlier this year, the firm commenced iron ore shipment from the Sanjiv Ridge operation in Western Australia.
The Sanjiv Ridge mine, which was previously known as Corunna Downs, is estimated to have a mineral resource of 64Mt at 57.32% iron and 29Mt at 57% iron ore reserve.
https://www.mining-technology.com/news/atlas-iron-approvals-miralga-creek-mine/
An ore face at Savannah North currently being mined and stockpiled. Credit: Panoramic Resources.
Panoramic Resources has started underground development and ore production at the Savannah nickel project in Western Australia, ahead of schedule.
Mining activities are currently being carried out by Perenti Global subsidiary Barminco as part of a four-year contract worth approximately $208m (A$280m) with Panoramic.
Barminco will be responsible for underground development and production works at the mine.
Panoramic managing director and CEO Victor Rajasooriar said: “During the past two months we have built our owners team from less than ten to more than 30, including the recruitment of senior mining engineering and geological roles, which has been really heartening in a tight labour market across the sector.”
Panoramic initially planned to commence underground mining at the Savannah project next month.
However, work commenced before schedule due to the arrival of new equipment on-site earlier than planned and the progress in the recruitment of both technical staff and underground operators, the company said.
Located in the Kimberley region, the Savannah project was commissioned in 2004 and produced until 2016, following which it was placed on care and maintenance.
However, Panoramic recommissioned the mine in 2018 upon the discovery of the Savannah North orebody. Operations were temporarily suspended last year.
Earlier this year, Panoramic sanctioned the restart of the nickel project, nearly a year after the suspension of operations.
Panoramic plans to commence the first concentrate shipment from the Savannah mine towards the end of this year.
The project is supported by a five-year nickel and copper concentrate offtake deal with Trafigura Group.
According to estimates, the mine will have an annual production capacity of 9,072t of nickel, 4,683t of copper, and 676t cobalt in concentrate. It is expected to have 12 years of operational life.
https://www.mining-technology.com/news/panoramic-underground-mining-nickel/
A recent study from risk consultancy Verisk Maplecroft found that the Covid-19 pandemic has contributed to a surge in governments pursuing resource nationalist policies – those that attempt to assert at least some sovereign control over natural resources. Around the globe, 34 countries saw their Resource Nationalism Index, the score Verisk Maplecroft gives to countries based on resource policy, rise significantly in 2020.
Africa is home to the heaviest concentration of countries seeking to increase their control over resources.
Reasons for a surge vary depending on the country – but the economic impact of the pandemic has “aggravated an already growing tendency for government interventionism in the resource sector”, according to Verisk Maplecroft, as governments look to recoup some of the financial losses brought on by Covid-19.
We map the African nations where resource nationalism looks set to rise post-pandemic.
Zambia
Copper contributes just shy of 65% of Zambia’s total gross exports and was marked by Verisk Maplecroft as one of the riskiest countries for resource nationalism following on from the country’s attempted liquidation of Konkola Copper Mines (KCM). In February this year, a Zambian court threw out a motion by Indian mining firm Vedanta Resources that was aimed at stopping a provisional liquidator from splitting up its subsidiary KCM.
Last year, Zambia said that officials with the Ministry of Mines and Mineral Development would begin collecting samples from mine sites to prevent mining companies undervaluing their production to pay less in tax. The ministry alleged that some operators deliberately submitted low-grade samples for assessment, depriving the country of mineral royalty revenue.
Zambia’s copper output fell in 2019, pre-pandemic, due to the implementation of new mining taxes which also had the compound impact of reducing investment in the country’s mining sector. Zambia has been mulling an overhaul of its mining tax regime, with Vice President Inonge Wina saying that there is a need to simplify the tax system, which will enable the government to effectively audit mining companies’ reported profits.
Wina said that the government wants communities in mining areas to benefit from any mining activities through enhanced social responsibility measures.
Democratic Republic of the Congo
The Democratic Republic of Congo’s (DRC) dominance in cobalt – the country is the source of more than two thirds of the battery metal – gives its government some considerable leeway to extract revenues from a material that is essential to electric vehicles and other green technologies.
The DRC Government introduced a new Mining Code in 2018, which added a further 50% tax on unexpected windfall profits, along with a host of other fees. Despite opposition and threats of reduced investment, the new regime went ahead, mandating that DRC citizens hold a 10% share in mining companies and enabling royalties on “strategic substances” to be increased at times of high global demand.
The DRC is ranked as the 175th least-developed nation, out of 189, according to the United Nations Human Development Index. As two of its major exports – copper and cobalt – become increasingly integral to green revolutions around the globe, the country could become a hotbed for protectionist measures seeking to assert more control and extract more revenues from miners. Verisk Maplecroft put the DRC in its top 10 countries at risk of resource nationalism.
Ghana
The re-election of Ghanain President Nana Akufo-Addo at the end of 2020 continues the risk of resource nationalism in Africa’s second-largest gold producer. Akufo-Addo has previously called for an end to the habit of African governments offering fiscal incentives to attract investment, believing that these deals need to be more beneficial to Africa.
“I believe we have come of age. We should not have to give unusual tax and royalties incentives. And mining companies should not expect to make extraordinary profits on our continent,” Akufo-Addo told the Investment in African Mining Indaba event in 2019.
The president has also taken a strong line on illegal mining, which digs up more than a third of Ghana’s gold. In April, Ghana’s military launched a nationwide operation to clear illegal miners out of the country’s water bodies, with Akufo-Addo seeking to ensure more environmental responsibility in the nation’s mining sector.
Prior to Ghana’s 2020 election, risk analysis firm Fitch Solutions said that the re-election of Akufo-Addo “will foster a continuation of the agenda to monetise future royalties, posing risks to mining investment in Ghana.
“In the longer term, if an LSE listing is accomplished, international miners could face increasing threats of resource nationalism as the government could seek to increase gold mining royalties.”.
Tanzania
Tanzania introduced sweeping reforms to its mining sector in 2017, with several pieces of legislation written into law that were wide in scope and short on debate time. The changes meant that the government could renegotiate contracts that Tanzania’s Parliament considered “unconscionable”, increased the government’s shareholding rights, and increased royalties paid on minerals and metals.
Verisk Maplecroft predicts that “fiscal indiscipline” on the part of Tanzanian authorities means that businesses could face “forceful implementation of tax and regulatory reforms” to enable the government to make ends meet.
Tanzania has tended to favour artisanal miners, to the extent that the government revoked licences from multinationals Barrick and Glencore to open the land to thousands of small-scale miners. The first three months of 2020, before the more calamitous effects of Covid-19 had come to pass, mining contributed over 15% to the country’s GDP.
The president overseeing these changes to the mining sector, John Magufuli, was a major promoter of Covid-19 denialism until his death in March 2021 – rejecting lockdowns and social distancing measures in favour of prayer.
When more than 500 cases of the virus were confirmed in Tanzania, his government stopped reporting cases to the World Health Organisation, declaring the test kits faulty and the nation free of the virus. His administration even rejected the premise of importing vaccines, including the free doses that it would be eligible for under the Covax initiative that aims to provide vaccines to poorer nations.
Tanzania had been experiencing years of economic growth up until the pandemic, but its wilful ignorance of the pandemic is likely to have major knock on effects for its economy – making further shake ups of mining laws more likely as the nation seeks to reset.
https://www.mining-technology.com/features/mapping-the-rise-of-resource-nationalism-in-africa/
The company's Zinc-air Energy Storage System (ZESS) has picked up the 'Energy Tech Innovator' award at the WE3 summit
Zinc8 has developed innovative battery technology that uses zinc and air as fuel, with energy stored in the form of zinc particles, similar in size to grains of sand
Inc (CVE:ZAIR) (OTCPINK:MGXRF) (FRA:0E9) has said a new award has validated the green credentials of its unique energy storage technology.
The company's Zinc-air Energy Storage System (ZESS) has picked up the 'Energy Tech Innovator' award at the WE3 summit, which is a collaboration between Texas-based research organization Zpryme and Smart Energy Water.
The aim of the summit is to connect global thought leaders who are embracing change and is associated with the WE3 CleanTech Innovation Series.
"This is another important affirmation of Zinc8's unique energy storage technology and its leading role in providing long-duration and low-cost energy storage which allows higher integration of renewable energy into the grid," Ron Macdonald, CEO of told investors in a statement.
Zinc8 has developed innovative battery technology that uses zinc and air as fuel. Energy is stored in the form of zinc particles, similar in size to grains of sand. When the system is delivering power, the zinc particles combine with oxygen drawn from the surrounding air. When the system is recharging, zinc particles are regenerated, and oxygen is returned to the surrounding air.
The system can be configured to support a wide range of microgrids and utilities. It is designed to deliver power in the range of 20kW to 50 MW or more with capacity of eight hours of storage duration or higher.
On April 8 this year, Zinc8 announced the planned deployment of its patented system at the University at Buffalo (UB).
The collaboration with the New York Power Authority (NYPA) marked the first long-duration use in New York State and a development that will support further integration of renewable power sources into the grid, it said.
That will allow for the demonstration of a 100 kilowatt/1 megawatt Zinc-Air Battery Energy Storage System in Buffalo to facilitate the wider use of renewable resources, the company added.
Contact the writer at giles@proactiveinvestors.com
Vedanta has been locked in a dispute with the Zambian government since May 2019, when the Zambian government handed control of the mine to a liquidator
A Zambian court has stayed hearing by a state-appointed provisional liquidator for splitting up Vedanta Resources' Konkola Copper Mines (KCM) unit and selling the assets.
The stay on KCM liquidation proceedings has been granted to allow Vedanta and the Zambian government to proceed to arbitration, Vedanta said in a filing to the Singapore Stock Exchange.
Metals and mining firm Vedanta Resources held a 79.4% stake in KCM while the Zambian government through its state mining investment firm ZCCM-IH holds the remaining 20.6%.
Vedanta has been locked in a dispute with the Zambian government since May 2019, when the Zambian government handed control of the mine to a liquidator.
Legal arguments over the case have been heard in both Zambia and South Africa.
"Zambian Court of Appeal has granted a stay in respect of any hearing of the merits of the Winding Up Petition and Amended Petition in respect of Konkola Copper Mines plc pending a decision in respect of the arbitration proceedings between Vedanta and ZCCM Investments Holdings plc (ZCCM)," Vedanta said.
Vedanta and Zambia are arbitrating in London over the KCM dispute, which began when the government accused Vedanta of failing to honour licence conditions, including promised investment.
Vedanta has previously denied that KCM broke the terms of its licence.
"The arbitral tribunal has recently granted a partial final Award in which it has ruled that ZCCM has breached, and is in continuing breach of, the dispute resolution provisions in the shareholders' agreement between amongst others ZCCM, Vedanta and the Government of Zambia," the company said.
To cure this breach ZCCM should immediately withdraw the petition and amended Petition and the provisional liquidator should be discharged, it added.
Provisional Liquidator Milingo Lungu had in December announced a restructuring plan involving splitting KCM into two subsidiary companies — KCM SmelterCo Limited and Konkola Mineral Resources Limited.
TORONTO, July 12, 2021 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced record quarterly production for the second quarter of 2021 (“Q2 2021”) of 379,195 ounces, a 15% increase from the second quarter of 2020 (“Q2 2020”) and 25% higher than the previous quarter, with all three of the Company’s operations achieving increased production from both prior periods. For the first half of 2021 (“YTD 2021”), production totalled 682,042 ounces, a 3% increase from the first half of 2020 (“YTD 2020”), reflecting higher production at Detour Lake and Macassa. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
Other Highlights of Q2 2021
Progress achieved towards key value-creation catalysts Detour Lake: Achieved continued exploration success in support of future Mineral Reserve growth and further progress with key growth projects; New life-of-mine plan and technical report on track for first half of 2022 Macassa: #4 Shaft project remained over a month ahead of schedule, reaching approximately 5,600 feet at June 30, 2021, with project on track for completion in late 2022 Fosterville: New exploration drive completed with five drills deployed in June to test the down-plunge extension of the Swan Zone in the Lower Phoenix System; Twin exploration drive to Robbin’s Hill reached 5,548 m of advance as at June 30, 2021
Committed to returning capital to shareholders: Normal Course Issuer Bid renewed, Automatic Share Purchase Plan introduced; Returned $62 million ($50 million in dividends and $12 million to repurchase 300,000 shares)
Normal Course Issuer Bid renewed, Automatic Share Purchase Plan introduced; Returned $62 million ($50 million in dividends and $12 million to repurchase 300,000 shares) Increased financial strength with cash of $855 million with no debt at June 30, 2021 versus $792.2 million at March 31, 2021; $98 million tax payment in Australia in Q2 2021 representing the final tax instalment for the 2020 tax year.
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “We generated record quarterly production in Q2 2021 and completed the first half of the year well positioned to achieve our full-year 2021 production guidance of 1,300,000 – 1,400,000 ounces, with our expectation now being to finish the year in the top half of the guidance range. The record production in Q2 2021 was largely driven by strong results at Fosterville, as well as higher levels of production at both Detour Lake and Macassa compared to both Q2 2020 and the previous quarter. Higher than planned production at Fosterville was mainly related to continued grade outperformance and changes in mine sequencing which resulted in an improved grade profile for the quarter. At Detour Lake, we achieved record production driven by increased mill throughput and a significant improvement in grade, with the average grade of 0.96 g/t in line with the current Mineral Reserve grade for the operation. Improved results at Macassa reflected increased processing rates, to an average of just under 1,000 tpd, as well as higher than expected grades. Both Detour Lake and Macassa are targeting further improvement in average grades over the balance of the year. At June 30, 2021, all three of our cornerstone assets were on track to achieve their full-year 2021 production guidance, with Fosterville positioned to potentially beat its guidance of 400,000 – 425,000 ounces.”
1) The Detour Lake Mine was acquired on January 31, 2020. Q1 2020 production represents output from that date to March 31, 2020. YTD 2020 production represents output from that date to June 30, 2020. 2) The Holloway Mine, a component of Holt Complex, was placed on care and maintenance in March 2020 with no plans for a resumption of operations. The remainder of the Holt Complex was placed on temporary suspension effective April 2, 2020 as part of the Company’s COVID-19 response. In July 2020, the Company announced that operations at the Holt Complex would remain suspended until further notice. 3) Production numbers may not add to totals due to rounding.
The company has acquired 100% ownership of 29,500 hectares of contiguous mining concessions in the Huanuco Andean region of central Peru immediately adjacent to the company's Ayawilca project
Tinka CEO Graham Carman said the company considers the Silvia project to be "highly prospective for large copper skarn and porphyry deposits"
( ) (BVL:TK ) (OTCQB:TKRFF ) (FRA:TLD) said it has signed a definitive agreement with BHP World Exploration Inc Sucursal del Peru, and through its wholly-owned subsidiary, Darwin Peru S.A.C., has acquired a 100% interest in the Silvia copper-gold-zinc exploration project in Peru with a one-time cash payment.
The Silvia project consists of 29,500 hectares of mining concessions believed to be prospective for large copper-gold-zinc skarn and porphyry copper deposits, lying immediately adjacent to the company's 100%-owned Ayawilca zinc-silver project in central Peru.
“Tinka now controls over 46,000 hectares of contiguous mining concessions in central Peru, one of the world´s most prolific base metal belts,” said the company.
The Silvia project lies around 80 kilometers (km) south and along strike of Antamina, one of the largest copper mines in Peru and the world's biggest skarn deposit - beneficially owned by BHP Group 33.75%, Glencore 33.75%, Teck 22.5% and Mitsubishi 10%. The project also lies immediately to the north of the Raura zinc-silver-lead-copper mine owned by Minsur.
- Intersection within a 3.14 metre-wide breccia/fault/vein zone averaging 1,351 g/t silver - West Fault target remains open in all directions - Drilling at West Fault ongoing with only 150 metres of the 1,100 metre-long structure having been tested
Vancouver, BC - TheNewswire - July 12, 2021 - Alianza Minerals Ltd. (TSXV:ANZ) (OTCQB:TARSF) (“Alianza” or the “Company”) is pleased to report the first analytical results from the 2021 drilling campaign at the Company’s wholly-owned Haldane high-grade silver property located in the historic Keno Hill Mining District of Yukon Territory. Drilling has focused on the West Fault target where drill hole HLD21-24 intersected siderite-galena-sphalerite vein and breccia mineralization averaging 3,267 g/t silver, 5.80% lead and 7.02% zinc (3,720 g/t silver-equivalent(2)) over 2.1 metres (estimated true width of 1.26 metres). This high-grade mineralization lies within a wider zone of siderite veining and brecciation, fault gouge with lesser galena and sphalerite which averaged 1,351 g/t silver, 2.43% lead and 2.91% zinc (1,542 g/t AgEq) over 5.24 metres (estimated true width 3.14 metres). The 8,579 hectare Haldane Property is located in the western portion of the Keno Hill Silver District, 25 kilometres west of Keno City, YT. Exploration at Haldane is targeting extensions of historical high-grade silver production on the property as well as recently defined targets, such as the West Fault, in new areas of the property.
“The result in HLD21-24 extends the high grade mineralization from HLD20-19 an additional 80 metres to the southwest and down dip,” stated Rob Duncan, VP Exploration for Alianza. “The high-grade nature of this intersection is indicative of the potential of this target and other targets at Haldane. We have only scratched the surface of the 1.1 km long West Fault structure.”
Table 1 –West Fault Target Drill Intercepts from HLD21-24
Hole Interval (m) Est True Width (m)(1) Silver (g/t) Gold (g/t) Lead (%) Zinc (%) Silver Eq.(2) (g/t) HLD21-24 5.24(3) 3.14 1351 0.08 2.43 2.91 1542 Including 2.10 1.26 3267 0.11 5.80 7.02 3720
(1) True width of the vein and breccia mineralization is estimated to be 50-70% of the core length intersection. A value of 60% is used for the purposes of reporting. (2) Silver-equivalent values are calculated assuming 100% recovery using the formula: ((20 * silver (g/t) / 31.1035) + (1650 * gold (g/t) / 31.1035) + (0.90 * 2204 * lead %/100) + (1.10 * 2204 * zinc %/100)) *(31.1035 / 20). Metal price assumptions are US$20/oz silver, US$1650/oz gold, US$0.90/lb lead and US$1.10/lb zinc. (3) Core recovery is estimated at 70-75% with the exception of a 0.80 metre section where recovery was zero. A value of zero was assigned to silver, gold, lead and zinc for the section of zero core recovery for the purposes of composite interval calculations.
The West Fault structure in HLD21-24 was intersected over a 13 metre core length of fractured quartzite, fault gouge and brecciation. Mineralization is concentrated within a 2.1 metre section of massive siderite veining with approximately 10% galena and 10% sphalerite as cross cutting veins and masses. A few metres either side of the vein consists of fault gouge, highly fractured and brecciated quartzite with siderite veinlets with 1-2% sphalerite and trace disseminated galena. Recovery throughout the quoted intervals averages approximately 70-75% with the exception of an 80 centimetre interval above the 2.1 metre high grade section, where recovery was zero.
Samples from three additional holes targeting the West Fault are in process at the laboratory. Drilling continues at the West Fault and is expected to continue through mid July.
Central Asia Metals (LON:CAML) announced Q2 2021 production figures with 3.3kt copper, up 16% QoQ and down 2% YoY, lead production of 6.8kt down 10% YoY and 3% QoQ and zinc production down 9% YoY and 3% QoQ. Rock conditions at Sasa have forced a temporary focus on areas of the mine which necessitate higher dilution leading to lower head grades and production
Central Asia Metals#: H1 2021 Operations Update
Operational Headwinds But on Track for a Record Year
Central Asia Metals ( ) announced Q2 2021 production figures with 3.3kt copper, up 16% QoQ and down 2% YoY, lead production of 6.8kt down 10% YoY and 3% QoQ and zinc production down 9% YoY and 3% QoQ. Rock conditions at Sasa have forced a temporary focus on areas of the mine which necessitate higher dilution leading to lower head grades and production; highlighting the decision to transition to lower dilution cut and fill mining. The company has indicated that output is likely to be towards the lower end of the guidance range. We have adjusted our Sasa production forecasts for this year to 29.6kt of lead and 23.1kt zinc although highlight that CAML has a track record of top operational performance spanning close to a decade. Indeed, despite this headwind at Sasa we expect 2021F to be a record year financially for CAML which will ultimately be the driver of a rerating of the share price, in our view.
VANCOUVER, BC / ACCESSWIRE / July 13, 2021 / ZincX Resources Corp. ("ZincX Resources" or the "Company", (TSXV:ZNX)(OTCQB:ZNCXF)(FRA:A2JLRM) is pleased to announce that the second hole of the 2021 diamond drilling program targeting the Cardiac Creek deposit has been successfully completed to its intended depth.
The second hole targeted the central area of the high-grade core in the vicinity of A-06-35, A-17-127 and down-dip of A-05-30. The central area has yielded some very high-grade results including 25.06 metres (TW) of 14.70% Zn+Pb and 23.98g/t Ag in A-05-30, and 12.97 metres (TW) of 10.71% Zn+Pb, and 16.03g/t Ag in A-06-35. Information obtained from this hole will yield valuable information from this area which has produced some of the highest grades encountered in the deposit.
Drill hole A-21-156B intersected approximately 23.0 metres (core length) of the Cardiac Creek Zone from a downhole depth of 652.53 to 675.11 metres. The zone is characterized by beds of interlaminated pyrite and sphalerite banding that locally display mottled textures; interbedded with the black siliceous shales of the Gunsteel Formation. Sulfide bedding increases in volume and relative width down hole with individual beds up 50-100 cm wide. Secondary galena is observed throughout the zone but appears to be concentrated towards the base of the zone.
A lower "footwall zone" of mineralization was intersected over an approximate length of 10.0 metres from a downhole depth of 685.65 to 697.76 metres. The lower zone is characterized by multiple 30-50 centimetre wide beds of laminated pyrite and sphalerite interbedded with black shale. The zone also contains visible galena occurring along cleavage planes where they intersect sulfide beds. Toward the lower contact the interval consists of thinly laminated sphalerite-pyrite and very fine barite locally displaying "mottled" textures.
The drill hole was terminated in bioclastic limestone dominated debris flows of the Paul River Formation at a depth of 720.68 metres. A total of 144 samples including standard QA/QC samples will be collected from this drill hole and submitted for analysis. The true width estimate of the Cardiac Creek intercept is not yet available but is being modeled and will be calculated upon release of pending assay results.
The drill is currently nearing completion on the 3rd planned hole. The Company is examining options for extending the program by one or two additional holes.
2021 Drilling Program
The 2021 drill program consists of three holes totalling approximately 2,000 metres of drilling with a primary objective of acquiring mineralized Zn-Pb-Ag drill core samples for advanced metallurgical testing. This material will be used to further investigate previous metallurgical testing of the mineralization with a focus on enhancing the recoveries and boosting concentrate grades for both zinc and lead; using state-of-the-art metallurgical testing facility owned by key strategic shareholder Tongling Non-Ferrous Metals of China (Tongling).
Tongling had previously agreed to fully fund the drilling and metallurgical test program. ZincX Resources will manage the drill program on behalf of Tongling who will subsequently conduct the metallurgical test program at the conclusion of the 2021 exploration season. This test is intended to enhance metallurgical work conducted and reported by the Company in the 2018 PEA.
Additional drill targets and or exploration activity will be contemplated as budget and time constraints allow.
The Akie Zn-Pb-Ag Project
The 100% owned Akie property is situated within the Kechika Trough, the southernmost area of the regionally extensive Paleozoic Selwyn Basin and one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by ZincX Resources since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization known as the Cardiac Creek deposit. The deposit is hosted by siliceous, carbonaceous, fine-grained clastic rocks of the Middle to Late Devonian Gunsteel Formation.
The Company updated the estimate of mineral resources at Cardiac Creek in 2018, as follows:
5% Zinc Cut-Off Grade Contained Metal: Category Tonnes
(million) Zn (%) Pb (%) Ag (g/t) Zn (B lbs) Pb (B lbs) Ag (M oz) Indicated 22.7 8.32 1.61 14.1 4.162 0.804 10.3 Inferred 7.5 7.04 1.24 12.0 1.169 0.205 2.9
The Company announced robust positive results from the 2018 Preliminary Economic Assessment (PEA). The PEA envisages a conventional underground mine and concentrator operation with an average production rate of 4,000 tonnes per day. The mine will have an 18-year life with potential to extend the life-of-mine (LOM) through resource expansion at depth. Key parameters for the PEA are as follows:
Parameter Base Case1 Tonnes Mined 25.8 Mt Mined Head Grades 7.6% Zn; 1.5% Pb; 13.08 g/t Ag Tonnes Milled 19.7 Mt Milled Head Grades (after DMS2 upgrade) 10.0% Zn; 1.9% Pb; 17.17 g/t Ag Total Payable Metal (LOM) $3,960M3 Initial CAPEX $302.3M including $45.7M contingency LOM Total CAPEX $617.9M including $58.5M contingency All-in Total OPEX $102.4 per tonne milled Pre-Tax NPV 7% $649M Pre-Tax IRR 35% Pre-Tax Payback 2.6 years After-Tax NPV 7% $401M After-Tax IRR 27% After-Tax Payback 3.2 years
1. The base case used metal prices are calculated from the 3 year trailing average coupled with two year forward projection of the average price; and are: US$1.21/lb for zinc, US$1.00/lb for lead and US$16.95 for silver. A CDN$/US$ exchange rate of 0.77 was used. The NPV discount rate is 7%. 2. DMS = dense media separation. 3. All dollar amounts expressed in Canadian dollars.
The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.
Kechika Regional Project
In addition to the Akie Project, the Company owns 100% of eight of eleven large, contiguous property blocks that comprise the Kechika Regional Project including the advanced Mt. Alcock prospect. The Kechika Regional Project also includes the Pie, Yuen and Cirque East properties which the Company maintains a significant 49% interest with partners Teck Resources Limited (TSX:TECK) and Korea Zinc Co. Ltd holding 51%. These properties collectively extend northwest from the Akie property for approximately 140 kilometres covering the highly prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-silver deposits in the Kechika Trough of northeastern British Columbia. These projects are located approximately 260 kilometres north northwest of the town of Mackenzie, British Columbia, Canada.
Ken MacDonald P.Geo., Vice President of Exploration for the Company, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release. Mike Makarenko P.Eng, JDS Energy and Mining, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the PEA technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
ZINCX RESOURCES CORP.
"PEEYUSH VARSHNEY"
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN
Contact:
Investor Relations
Phone (604) 684-2181
info@zincxresources.com
SOURCE: ZincX Resources Corp.
View source version on accesswire.com:
https://www.accesswire.com/655254/Exploration-Update-on-Akie-Drill-Program
ASX-listed junior copper and gold explorer Taruga Minerals has punched out a second-pass round of reverse circulation drilling at the promising Wyacca copper prospect at its Mt Craig project in South Australia. The latest program comprising 43 holes totalling about 4,100m comes after the company caused punters’ pulses to quicken a couple of months ago when it unveiled a clutch of high-grade copper drill hits at the greenfields sediment-hosted Wyacca discovery.
They were 5m at an average grade of 2.4 per cent copper from 17m including 1m at 9.5 per cent from 18m, 11m at 1.5 per cent from 85m including 4m at 2.7 per cent from 85m and 1m at 5.9 per cent copper from 88m.
Another stand-out intersection from the same initial 30-hole RC program was 7m grading an average 1.8 per cent copper from 85m including 4m at 3.1 per cent from 87m and 2m at 3.5 per cent from 88m.
Assays for the company’s phase-two infill and extensional drilling are expected next month.
Diamond drilling is also slated to commence at Wyacca next month.
According to Taruga, results from its maiden RC drilling campaign at Wyacca point to the continuity of copper mineralisation over a 900m long by 200m wide zone that remains open along strike and down dip.
The recently completed follow-up drill program was aimed at improving the company’s understanding of the relationships between mineralisation, structure and geophysical anomalies at Wyacca.
It was also targeted at extending the high-grade mineralised zones and expanding the cupriferous footprint along strike and down dip.
Management says the drilling indicates Wyacca mineralisation has a strong stratigraphic control within the Tindelpina shale member unit, which Taruga says is the main target for sediment-hosted copper mineralisation at Wyacca and its potential extensions.
The Tindelpina shale member host rocks outcrop for 56km around the Worrumba anticline on the company’s exploration licences.
Our … ongoing systematic exploration is delivering significant prospect-scale growth, with approximately 56km of highly prospective Tindelpina shale identified on Taruga ground. The Worrumba anticline is believed to be a basin-controlling structure, from which many substructures extend and likely cross-cut the Tindelpina shale.
Identifying influential structures and ideal trap sites for high-grade Zambian-style copper mineralisation within the Tindelpina shale will be a focus at the evolving Wyacca prospect.
Additional geophysical surveys designed to assist with pinpointing drill targets, including potential deeper holes along the down-dip extents of the Tindelpina shale member, are also planned for Wyacca.
Taruga has also just completed a reconnaissance RC program at the Morgan’s Creek prospect at Mt Craig about 30km south along strike of Wyacca consisting of 22 holes for an aggregate drilling coverage of about 2,100m.
The first-pass investigation at Morgan’s Creek encountered copper and zinc anomalies in a range of lithologies, the company says.
Assay results from the drilling there are also expected next month.
The Mt Craig project area lies within the Adelaide Geosyncline at the intersection of the G2 and G8 structural corridors, which take in most of South Australia’s past and present major base metals projects including BHP’s colossal Olympic Dam operation and Oz Minerals’ Prominent Hill and Carrapateena mines.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
Supply chains are more vulnerable now than ever, and governments are getting twitchy
Did you think resource nationalism was a product of the Trump era that would quietly fade away once he was gone?
Think again.
If there’s one thing – and perhaps there is only one – that Trump managed to create a consensus about, it’s renewed suspicion of China.
The writing was on the wall economically for some time, of course, given China’s well-known and unabashed tendency to steal intellectual property. But for a long time the consensus amongst US policy makers was that that was a price worth paying since China’s economic liberalization was likely to lead to political liberalization too.
That hasn’t happened, of course. But it took the short, sharp, shock of Donald Trump to wake people up to the fact that it’s probably never going to happen either. In this digital age, surveillance and control have been rendered easier, not harder, and rising economic prosperity inside China is now seen as incidental to, rather than a precursor for, greater freedom.
So where does that leave the rest of the developed world?
Having deliberately integrated China so effectively into the global economic supply chain, the answer is: in a bit of a bind.
So much of the wider global economic growth, of the downward pressure on consumer price inflation, and of rising standards of living, have been driven by the arrival of China as a major player onto the global economic scene.
It’s now thought generally – and 80% of the companies involved in a recent survey confirm it – that supply chains have become overstretched and overly vulnerable to the type of disruption that we’ve seen during the pandemic.
This survey, conducted by Protolabs, and reported on by Reuters, found that British and European Union manufacturers want to move more of the supply chain for electric vehicle batteries closer to home.
And it’s already happening.
Aided by various government incentives new gigafactories are springing up all over Europe, with a view to bringing battery manufacturing closer to home. There’s still plenty to be done, of course. As it stands, only 6% of battery manufacturing takes place in Europe, and the reliance on China remains pretty strong.
But that’s not altogether to the bad. The desire isn’t necessarily to cut China out of the picture altogether, but rather to take some of the risk out of the current imbalances.
Thus, the beginning of this month, Nissan announced that it will invest £1bn to produce batteries near its main European production plant in Sunderland. Nissan’s partner in this venture? – the Chinese company Envision AESC.
But elsewhere, companies, and governments are proceeding independently of the Chinese. In Spain, a US$5bn electric vehicle battery production programme is being kick-started and mostly funded by European Union recovery funds. New factories are also springing up in Germany and Italy, and in the UK, where other factories are in the pipeline, rumours persist that Tesla is on its way.
All of which is highly positive for those mining and resource companies with assets close at hand. In the lithium space, there aren’t too many of these, which means they will be all the more in demand.
In the UK, , the private company which is pioneering extraction from brines in Cornwall, and British Lithium, also private, are leading the way.
But there are listed companies that are in on the action too. In Europe, Savannah Resources ( ) has a major deposit in Portugal, European Metals Holdings (LON:EMH) retains an interest the Cinovec deposit in the Czech Republic, while Zinnwald Lithium ( ) is working up a deposit just across the border, near Dresden.
Spain is the European Union’s second largest car producer after Germany, so Savannah will be well positioned to ship its product over the Portuguese border, while European Metals and Zinnwald can target the major German hubs.
There’s significant car manufacturing in the UK too, which is where the UK-based lithium companies are likely to come into their own. In that context it comes as no surprise to learn that the British government is being extremely helpful to both companies, and that regulatory hurdles are likely to be kept to a minimum.
And, for those who are wondering if a similar dynamic is playing out across the Pond, the answer is yes. Next week Bradda Head Ltd will list on Aim, backed by £6.2mln in new money. Bradda has lithium assets in Nevada and Arizona, and is well placed to serve a local market that currently only produces 5,000 tonnes of lithium carbonate locally.
But given the economic forces currently at work – the supply-demand dynamic combined with resource nationalism - the projection is that the US will need around 210,000 tonnes of lithium carbonate by 2025 – a huge increase. It’s that kind of opportunity that Bradda Head and its European counterparts are looking to capitalize on.
A fast-growing staple of the green energy revolution, rare earth elements are used to produce electric magnets found in everything from electric vehicles (EVs) to direct drive wind turbines. With tightening global emissions restrictions driving up demand for EVs, cashing in on deposits of rare earth materials is a savvy way to secure a seat at the table of the blossoming green economy, and finding alternative sources to China has become a priority amidst continued trade tensions.
Peak Resources’ Ngualla project is based on one of the largest and highest-grade undeveloped neodymium praseodymium (NdPr) deposits in the world, located in southern Tanzania. Rare earths remain a newly-emerging product and while deposits in Tanzania are high-grade, Peak Resources’ project marks the first rare earths mine in the country.
It has, however, been dogged with hurdles, including disputes between the government and gold miner Acacia, as well as a 2020 election that saw parliament change hands. Now, Peak is on the home stretch to receiving its mining license.
Rare earths in Tanzania
Tanzania has a strong mining history, as both Africa’s fourth-largest gold producer and a lucrative hub for precious materials such as diamond and tanzanite.
With the government hand-over, a new emphasis on mining has taken the driving seat, with the Ministry of Minerals reportedly turning its attention to boosting mining’s contribution to the GDP. The new administration is also seeking to enact mining companies’ right to mine, as well as Tanzania’s right to benefit from its mineral wealth.
A Bloomberg report found that the government intends to increase mineral earnings by 33% over the next three years, marking a revenue increase of up to Tsh701.1bn ($302m)between 2023 and 2024. With such a setup, the foundations have been established for Tanzania to see a boom in its mining fortunes, and Peak is in prime position to ride the wave.
“Tanzania is a very established mining jurisdiction,” says Bardin Davis, managing director of Peak Resources. “It has significant gold, diamond, and tanzanite projects in operation, as well as large-scale rare earth, graphite, and nickel development projects. It’s an incredibly attractive jurisdiction from a geological perspective.”
“Ngualla is one of the largest, highest-grade undeveloped NdPr deposits in the world,” he adds. “It has ore reserves with a grade of 4.8% that support an initial mine life of 26 years. The intention is to produce a high grade concentrate at Ngualla with a rare earth oxide grade of around 45%, which will then be shipped to our Teesside Rare Earth Refinery in the UK.”
The decision to ship the NdPr to the UK is due to the country’s long-established history of chemical refining – the established skilled labour force and infrastructure is part of how Peak intends to make their project low in cost and high in efficiency.
“Teesside has a very long history of steel works, chemical, and petrochemical processing,” says Davis. “Our site is located within 3km of Teesport, which is the third largest port by volume in the UK and has capacity to handle large volumes of concentrate and re-agents. The site also has existing access to competitively priced power, gas, steam, water, and environmentally sustainable waste disposal. It provides us with a low cost ‘plug and play’ solution.”
A global frontrunner?
With a high grade deposit and both the workforce and infrastructure in place – the project provides a golden opportunity to lead the charge in the rare earths sector at an economically viable level, with the high grade nature of the deposit meaning less money is needed for processing.
“From a mineralisation perspective we’re dealing with a high-grade site, which means it’s low in acid-consuming elements,” Davis says. “This means we need less reagents and chemicals as part of our separation and refining, as well as low levels of radio nucleotides. We can take the grade of our concentrate up to 45% without needing to be concerned about radioactivity levels.”
Not only does the project hope to prove low-cost, it also intends to channel some much-needed money back into the country.
“The tourism industry has been impacted by the global Covid-19 situation,” Davis adds. “Our project is around a $200m investment in the country, which will be a very important source of foreign investment that’s going to create a lot of jobs during construction, as well as during operations. It really is a tremendous opportunity for the country.”
And rare earths is an industry that’s only predicted to continue increasing in value, with a Global News Wire report estimating the sector will reach $6.6bn in value by 2027.
A sector on the rise
The decision of many governments to support a green revolution as part of their Covid-19 recovery strategies has made rare earths a hot commodity, with Australia declaring rare earths a ‘critical mineral’, and giving the green light for companies to develop projects in this space. With China currently producing 90% of rare earths, the need to establish a viable competitor is a motivator for many.
“Due to a combination of China’s dominance in supply, rising geopolitical and trade tensions, and the nexus between rare earths and decarbonisation, there are rising calls for greater diversity of supply and support production outside of China,” says Davis. “Within the new global Covid-19 environment, we are also seeing increased focus around security of global supply chains.”
While Peak Resources’ project ran into some issues in getting off the ground, it would seem the project is finally in the clear, and ready to meet this demand.
“The timing of our Special Mining Licence application was unfortunately impacted by a protracted dispute between the Tanzanian Government and Acacia and subsequent amendments to the mining legislation,” says Davis.
Yet he adds that new Tanzanian President Samia Sulu Hassan has shown a pro-business and foreign investment stance that bodes well for the project’s future. The only task standing in the way of operations commencing is paperwork.
“The key focus is the official granting of the special mining license,” Davis says. “Post that, we need to negotiate an economic framework, update the BFS around costs, and then on the commercial side secure long term offtake arrangements, in conjunction with project and export financing. We don’t see any of those as major constraints. It’s more just a process that we will need to work through.”
If all goes to plan, Ngualla is on track to open its doors in the near future, and start a new chapter for Tanzania’s mining sector, with Peak at its helm.
https://www.mining-technology.com/features/could-rare-earths-peak-in-tanzania/
VANCOUVER, British Columbia., July 14, 2021 (GLOBE NEWSWIRE) -- Marimaca Copper Corp. (“Marimaca Copper” or the “Company”) (TSX: MARI) is pleased to announce that drilling results from the remaining reverse circulation (“RC”) drill holes, completed at the Cindy Target (“Cindy”), have intersected significant copper mineralization, extending the strike length to over 800m. Cindy is located less than 5km to the north of the Marimaca Oxide Deposit (“MOD”) and offers potential to add to the Company’s leachable resource base and extend mine life or increase the scale of future operations.
Highlights
Mineralized structures now identified over 800 meters of strike
Broad zones of enriched and primary copper mineralization intersected in two new holes: CIR-08 intersected 42m with an average grade of 0.46% CuT as part of a broader 100m @ 0.3% CuT from 128m CIR-09 intersected 46m with an average grade of 0.29% CuT as part of a broader 122m @ 0.23% CuT from 218m
These results extend the strike of the mineralization identified in previously reported holes: CIR-03 intersected 42m with an average grade of 0.51% CuT as part of a broader 70m @ 0.39% CuT from 24m CIR-02 intersected 20m with an average grade of 0.33% CuT as part of a broader 124m @ 0.22% CuT from 8m
Intersections in CIR-08 and CIR-09 are deeper and show the consistent, quite broad, easterly dipping structural controls to mineralization observed in holes CIR-02 and CIR-03 Indicates potential for up dip oxide mineralization further to the west from CIR-08 and CIR-09
Updated regional magnetics indicates potential for extensions of oxide structures to the north of Cindy, at Mititus
No significant mineralization intersected in holes CIR-04, -05, -06 and -07
Sergio Rivera, VP Exploration of Marimaca Copper, commented:
“We have now identified over 800m of strike of a relatively continuous, broad zone of copper mineralization, which extends from surface, in the northern oxide holes (CIR-02 and CIR-03), down to a depth of 330m downhole in hole CIR-09, which is located towards the southern end of the area of interest and predominantly intersected chalcopyrite.
“The intersections in CIR-08 and 09 are deeper and accordingly have increased amounts of primary mineralization, but when considered in context of the east dipping structures, would indicate potential for oxide mineralization closer to surface, up dip on the structures to the west.
“We have also extended our magnetic survey, which has indicated a large anomaly directly to the north of Cindy and we are investigating the potential for extensions of the mineralized zone and structures into this area. If successful, this could meaningfully increase the strike length of Cindy.
“We are currently awaiting assay results from Mercedes and are preparing infrastructure and drill pads for the Roble Target, where we will commence drilling imminently.”
Hayden Locke, President and CEO, of Marimaca Copper, commented:
“These results should be considered in context of the broader MOD development. The intersections are above the economic cut-off grade established in our 4th August 2020 Preliminary Economic Assessment (“PEA”), using a $3/lb copper price, and are within 5km of the MOD project. As a result, we continue to see strong potential for mine life extension or scale increase for the MOD with ongoing work at the Cindy Target.”
VANCOUVER, BC / ACCESSWIRE / July 14, 2021 / AZARGA METALS CORP. ("Azarga Metals" or the "Company") (TSXV:AZR) is pleased to announce that it has entered into a Term Sheet with Golden Predator Mining Corp. ("Golden Predator") to enable it to undertake due diligence and negotiate formal agreements to pursue an acquisition of the Marg copper-rich VMS project (the "Marg Project"), located in Central Yukon (the "Transaction").
President, CEO and Director, Gordon Tainton, said: "We're very excited about the agreement to acquire the Marg Project. Marg is a high-grade copper-rich VMS project with significant gold and silver credits. The project has a NI43-101 resource and a PEA report that was completed in 2016. The positive outlook for base metals and the exploration upside associated with the Project make it a compelling value creating opportunity for Azarga Metals."
ABOUT THE MARG PROJECT
The Marg Project is an undeveloped volcanogenic massive sulphide ("VMS") deposit located in the Mayo Mining District in Central Yukon, approximately 40 kilometers east of Keno City (which itself is approximately 465 kilometers by road north of Whitehorse) (See Figures 1 and 2).
The Project consists of 402 Mineral Claims covering an area of approximately 8,403 hectares (~84 square kilometers).
The most recent NI43-101 Mineral Resource estimate for Marg (see Table 1) was completed by Mining Plus Canada Consulting Ltd. ("Mining Plus") in 2016 and incorporated into a Preliminary Economic Assessment ("PEA") for the Project (note: the PEA title is "Revere Development Corp, Marg Project Preliminary Economic Assessment, Technical Report, Yukon Canada" and dated 31 August 2016).
Table 1 - 31 August 2016 NI43-101 total Mineral Resource estimate for Marg Project at a 0.5% copper equivalent cut-off (combining high-grade and low-grade zones)1
Category Tonnage (mt) Cu% Pb% Zn% Ag g/t Au g/t Indicated 3.7 1.5 2.0 3.8 48 0.76 Inferred 6.1 1.2 1.7 3.4 44 0.74
Note: 1. Where CuEq% was calculated = Cu% + 0.28 Pb% + 0.32 Zn% + 0.39 Au g/t + 0.0055 Ag g/t, which was assessed based on the following metal price and recovery assumptions: Cu price of 2.5 US$/lb and recovery of 80% (96.5% payable); Pb price of 0.8 US$/lb and recovery of 70% (95% payable); Zn price of 0.8 US$/lb and recovery of 90% (85% payable); Au price of 1100 US$/oz and recovery of 50% (90% payable); and Ag price of 16 US$/oz and recovery of 50% (90% payable).
The 2016 PEA was highly conceptual in nature. It envisaged the development of a 1.25mtpa 8-year life mining operation and floatation plant producing a copper concentrate, zinc concentrate and lead concentrate to be transported by road to the Skagway Port. Pre-development capital was estimated at C$291 million (+/- 40%). At a discount rate of 10% the PEA showed a pre-tax net present value ("NPV") of C$40.5 million and an internal rate of return ("IRR") of 16.0%. Albeit, those outcomes were calculated at very different commodity prices to those prevailing today, including: copper at US$2.75/lb (current spot ~US$4.23/lb); zinc at US$1.00/lb (current spot ~US$1.33/lb); and lead at US$0.90/lb (current spot ~US$1.04/lb).
The mineral resource estimate in the 2016 PEA was prepared in accordance with NI 43-101 standards and is considered by Azarga Metals management to have a high degree of reliability, however, the resource has not been verified by Azarga Metals and is considered historical in nature. A qualified person representing Azarga Metals has not done sufficient work to classify the historical estimate as a current mineral resource and Azarga Metals is not treating it as a current mineral resource. This resource was estimated for Revere Development Corp in a technical report titled "Revere Development Corp, Marg Project Preliminary Economic Assessment, Technical Report, Yukon Canada" and dated 31 August 2016.
Preliminary due diligence conducted by Azarga Metals highlights potential areas the Company would focus on initially to enhance the value of Marg under its ownership, including:
Advancing metallurgical and mineralogical work - The 2016 PEA was done when very limited mineralogy or metallurgical test work, and this appears to have been a key issue for estimating recoveries, concentrate grades and processing costs. No material comminution test work had been performed and flotation test work was focused on production of a bulk concentrate as opposed to production of separate copper, zinc and lead concentrates as envisaged in the PEA and as would be more typical for similar VMS deposits. The issue of lack of relevant metallurgical and mineralogical test work presented itself in the PEA with lower than typical recoveries assumed for similar mineralization styles (including very low assumed recoveries into concentrate for gold or silver). The Company believes that more appropriate and extensive metallurgical and mineralogical test work could deliver improved economic outcomes.
Calgary, Alberta--(Newsfile Corp. - July 14, 2021) - Copper Fox Metals Inc. (TSXV: CUU) (OTC Pink: CPFXF) ("Copper Fox" or the "Company") through its wholly owned subsidiary Northern Fox Copper Inc. is pleased to announce that it has commenced its 2021 program on the Eaglehead polymetallic porphyry copper project located in northwestern British Columbia.
Eaglehead (15,956 ha) is an intrusion hosted calc-alkalic polymetallic (Cu-Mo-Au-Ag) porphyry copper system hosted in a Late Triassic-early Jurassic multi-phase, granodioritic/dioritic intrusive stock located approximately 50 kilometers ("kms") east of Dease Lake in Tahltan territory. Historical exploration includes 126 diamond drill holes (36,605 metres ("m")), preliminary metallurgical testwork, airborne and ground geophysical surveys, soil and stream sediment geochemical surveys and limited prospecting and mapping. The historical drilling concentrated on four mineralized zones; East-Bornite-Pass-Camp (see News Release dated June 10, 2021).
Highlights are:
The 2021 budget is $700,000 and consists of an 18km induced polarization ("IP") survey, and mapping, sampling, and prospecting program.
The focus of the 2021 IP survey is to extend the chargeability/resistivity signatures to the north of the mineralized zones into the area of coincident copper mineralization and copper-molybdenum in soil geochemical anomaly.
Re-logging and, if required, re-sampling of the diamond drill holes from the Far East zone.
Elmer B. Stewart, President and CEO of Copper Fox, stated, "The historical drilling was essentially restricted to the four mineralized zones. These zones cover a small portion of the Eaglehead intrusion which, based on trace element chemistry, is shown to be prospective for large porphyry copper deposits. Systematic mapping and prospecting of the Eaglehead intrusion was never completed. Our compilation indicates the area north of the mineralized zones is very prospective for porphyry style mineralization. The focus of the 2021 program is to evaluate the prospectivity of this area for porphyry style mineralization and expand the geophysical coverage in advance of a potential 2022 diamond drill program."
Geological Model
The Eaglehead project is a multi-phase intrusive with porphyry style mineralization occurring in the various intrusive phases and in mafic volcanics of the Kutcho Formation wall rocks. The mineralization in the four zones identified to date is open in several directions and at depth and the sulphide mineral zonation and surface exploration data suggest the potential for porphyry style mineralization to the north towards the center of the Eaglehead intrusive. Structural adjustments to the mineralized zones occurred post mineralization.
2021 Program
Induced Polarization Survey
The 2021 IP survey and mapping program covers the large, irregular Cu-Mo in soil geochemical anomaly (6,400m long by up to 2,000m wide) and the area of sporadic copper mineralization (3,000m by 2,000m) located north of the Bornite-Pass-Camp-West zones. The chargeability/resistivity signature from the 2014 IP survey indicates the anomalous (>10mrds) portion of these signatures remain open to the north. The 2021 IP survey extends the 2014 IP survey lines approximately 2.5kms to the north and will map the chargeability/resistivity signatures between the mineralized zones and below the area of copper mineralization and copper-molybdenum in soil anomaly. On completion of the 2021 program the data from the IP surveys will be merged resulting in an updated interpretation of chargeability/resistivity signatures over approximately 22 square kms of the Eaglehead intrusive.
Mapping and Sampling
Mapping and sampling of the area covered by the 2021 IP survey will be completed to provide lithological and mineralogical data to aid in the interpretation of the IP survey. In addition to aiding in the interpretation of the IP survey data, this work would provide better definition to the Eaglehead intrusive, the bedrock source and evaluate the area for porphyry copper style mineralization.
Far East Zone
The 2021 program includes re-logging and if warranted sampling of the six wide spaced diamond drill holes completed in this zone. The purpose of the work is to obtain a more detailed description of the lithologies, alteration and style and distribution of mineralization. The zone is estimated to be approximately 1,500m long and based on current drill log descriptions is characterized by disseminated pyrite with minor chalcopyrite, bornite and occasional molybdenite. These drill holes were selectively sampled over narrow intervals leaving long intervals of un-sampled drill core. Available analytical results from the diamond drilling completed on the Far East zone are reported below.
Hole # Azimuth Dip From (m) To (m) Interval (m) Cu (%) Mo (%) Au (%) Ag (%) 65 0 -75 68.88 73.76 4.88 0.113 tr 0.04 tr 96.31 99.36 3.05 0.394 tr 0.034 tr 111.25 115.97 4.72 0.181 tr tr 1.00 143.40 145.08 1.68 0.376 0.004 0.080 tr 147.83 148.74 0.91 0.475 tr 0.020 2.00 154.53 154.83 0.30 1.035 tr 0.033 2.00 66 0 -70 10.05 10.36 0.31 3.793 0.012 0.342 82.00 29.41 29.44 0.03 6.146 0.014 0.233 79.00 61.78 62.42 0.64 1.102 tr 0.223 6.00 70.25 71.32 1.07 3.524 0.029 0.591 45.00 83.14 86.86 3.72 1.761 0.010 0.067 39.24 91.44 103.22 11.78 0.207 0.001 0.067 3.51 112.16 112.77 0.61 0.526 0.004 0.165 tr 129.23 144.53 15.30 0.413 0.021 0.246 8.69 159.10 160.32 1.22 4.249 0.005 0.264 36.00 213.20 219.15 5.95 0.208 tr tr tr 67 0 -70 53.94 72.23 18.29 0.106 0.004 0.013 1 130.14 133.19 3.05 0.120 tr tr tr 68 0 -80 43.89 50.59 6.70 0.348 tr tr 5.00 103.32 103.35 0.03 2.13 tr tr 11.00 196.29 199.79 3.50 0.294 tr tr 1.74 215.18 221.28 6.10 0.215 tr tr 3.50 78 45 -65 116.74 124.05 7.31 0.233 tr 0.731 5.34 140.51 151.49 10.98 0.131 0.003 0.224 3.00
Notes: The weighted average for the mineralized intervals were calculated using a 0.10% copper cut-off. Where possible, historical analytical results were used to calculate the weighed average grades provided that no overlap in interval or grade occurred. The core intervals in the above table do not represent true thickness. Numbers are rounded for presentation purposes. Molybdenum values below 0.003%, gold values below 0.02g/t, and silver values below 0.5g/t are reported as trace ("tr").
QA/QC Procedures
The historical information included in this news release is taken from Assessment Reports filed with the British Columbia Ministry of Mines, internal studies completed by former operators and NI 43-101 Technical Reports filed in 2017 and 2019. The QP for this news release acted as a technical consultant and was instrumental in the planning, execution, and supervisions of the exploration programs completed on this project between 2014 and 2018, the last year in which exploration activities were completed. This compilation and interpretation were formed by including, but not necessarily exclusive to, drilling, assaying, mapping and soil geochemical surveys. These results have not been verified by Copper Fox and should not be considered reliable until verified by Copper Fox. The information provides an indication of the exploration potential of the Property but may not be representative of the mineralization on the property.
Qualified Person
Elmer B. Stewart, MSc. P. Geol., President and CEO of Copper Fox, is the Company's non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the scientific and technical information disclosed in this news release.
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSXV: CUU) focused on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia and a 100% ownership of the Van Dyke oxide copper project located in Miami, Arizona. For more information on Copper Fox's other mineral properties and investments visit the Company's website at http://www.copperfoxmetals.com.
For additional information contact: Investor line 1-844-464-2820 or Lynn Ball, at 1-403-264-2820.
Halifax, Nova Scotia--(Newsfile Corp. - July 14, 2021) - ScoZinc Mining Ltd. (TSXV: SZM) ("ScoZinc" or the "Company") announces that it has agreed with Fancamp Exploration Ltd. ("Fancamp") to further extend the deadline for closing the transaction contemplated by the Arrangement Agreement between ScoZinc and Fancamp dated February 18, 2021 (the "Transaction").
Fancamp has agreed to pay ScoZinc a fee of $125,000 to extend the closing deadline to August 2, 2021. To the extent that the Transaction does not close by August 2, 2021, Fancamp may obtain a further extension of the closing to September 2, 2021, by paying an additional $125,000 to ScoZinc, prior to August 2, 2021.
ScoZinc's President and CEO, Mr. Mark Haywood, stated: "While we were disappointed at the delay in Fancamp's AGM and the closing of the Transaction, the business combination between ScoZinc and Fancamp remains a solid and transformational opportunity for both companies and their shareholders.
Our Scotia Mine has continued to advance on many fronts, and together with the significant improvements in the zinc and lead prices and the reductions in treatment charges from our 2020 Pre-Feasibility Study ("PFS"), indications are that the project may be more robust than previously determined by our industry experts. We are progressing on an update to the PFS to determine the level of improvement.
ScoZinc and Fancamp have agreed to keep the Transaction alive by extending the closing deadline for 30 days beyond the previous July 2, 2021 deadline, to August 2, 2021. Should Fancamp need additional time to close, we have agreed it may extend for a further 30 days to September 2, 2021 with the payment of the additional extension fee.
ScoZinc looks forward to closing the long-awaited Transaction with Fancamp and advancing the Scotia Mine to sustained commercial production as early as next year."
About ScoZinc Mining Ltd.
ScoZinc is a Canadian exploration and mining company that has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. ScoZinc also holds several prospective exploration licenses nearby its Scotia Mine and in surrounding regions of Nova Scotia.
The Company's common shares are traded on the TSX Venture Exchange under the symbol "SZM". For more information, please contact:
Mark Haywood
President & Chief Executive Officer
Robert Suttie
Chief Financial Officer
Simion Candrea
VP Investor Relations
Head Office
Purdy's Wharf, 1959 Upper Water Street, Suite 1301, Nova Scotia, B3J 3N2, Canada
Telephone +1 (902) 482 4481
Facsimile +1 (902) 422 2388
Alien Metals (UFO) has informed investors that its original drilling plan at the Donovan 2 copper-gold project in Mexico remains largely unchanged after it reviewed new data.
Alien has received all of the technical data from Capstone Mining’s drilling, excluding the drill core, which it said it will review in due course, as well as a final report outlining their findings.
Last month, Alien said Capstone Mining Corp had decided not to proceed on the Donovan 2 Copper-Gold project thereby terminating a previously agreed earn-in agreement between Alien, Estrella de Plata, Capstone Mining Corp. and Capstone Gold S.A. de C.V. from July.
At the time, the Company informed investors that Capstone had planned to provide Alien with all the technical data generated during their tenure as well as a final report outlining their findings as per the original agreement which was previously signed back in October 2020.
Alien said its original drilling plan remains largely unchanged because Capstone’s drilling consists of single holes in different locations that target very specific geophysical targets.
Figure 1: Location of Donovan 2 Copper-Gold project, Zacatecas Region, Mexico in relation to TECK San Nicolas VMS Copper deposit, July 2021
Source: Alien Metals
In comparison, Alien said it had planned to, and still does plan to, carry out a more systematic ‘heel to toe’ style of drilling across geophysical and geological targets, in order to ensure that each target area is properly covered by drilling with no gaps, it explained. (Figure 2 below).
Alien is now finalising an initial 4-to-6 hole program for about 800m to target the Los Alamos and Cerro de la Cruz targets once a review of the current drilling permit status is completed, the MMI results are received and reprocessing of the geophysics are completed to ensure it has used every available piece of data to maximise confidence in the drilling program, it said.
Figure 2: Alien proposed maiden drill plan, June 2020, Donovan 2
(Source: Alien Metals)
Capstone said it will arrange for a revocation of the transfer agreement and Alien will revert to being the Project operator, retaining a 100% interest in the Donovan 2 Copper-Gold project.
Alien said it is considering getting the combined geophysical data at Donovan 2 to date by all parties reprocessed and reinterpreted by an independent group specialising in geophysical interpretation who have experience of Mexican geology and geophysical responses.
It said a comparison of geophysical work is already comparing the San Nicolas project to Donovan 2 with possible synergies being used as targeting tools for these phases of work such as the MMI program initial target area.
Bill Brodie Good, CEO & Technical Director, said, “In our view, Donovan 2 is still a highly underexplored asset and one that, we believe, offers a great deal of exploration potential.
Following the recent termination of the earn-in agreement with Capstone Mining we have been hard at work reviewing the exploration they undertook, as well as reviewing all of our own historic exploration work. We are now finalising the next stage exploration programs for the project.”
“We believe that some of the geophysical targets at Donovan 2, along with the geological target at Los Alamos, have not been adequately tested. Along with reinterpretation of the geophysical data and surface geochemical work, we want to ensure we have optimised target generation to follow up with our systematic maiden drilling program,” added Brodie Good.
“We are undertaking a review and validation of Capstone’s drilling, which could provide more information to use in target generation. The recent new samples taken by Alien from the old water well at Los Alamos further reinforces our belief in this project and its potential.”
View from Vox
Despite Capstone's withdrawal, Alien Metals has told investors that it believes it can use the existing work and data ‘more fully’ in order to construct a plan for the next stage of work.
In recent weeks, Alien extracted a fresh sample of mineralised material taken from the Los Alamos water well target as part of its follow up piece of work to aid in further targeting work.
UFO price chart
UFO’s portfolio of exploration stage assets includes volcanogenic massive sulphide style mineralisation (copper, zinc and lead), high-grade silver projects in Mexico and a 51% interest in two highly prospective iron ore projects in the Pilbara region in Australia.
The company said its portfolio may be expanded to include other minerals such as iron ore and lithium, and jurisdictions within Africa and Asia where its management has demonstrable expertise advancing assets in line with international reporting standards.
Expanding Licence Areas
In recent weeks, the company was granted a 208 km2 exploration licence by Ironbark Zinc surrounding the Citronen zinc-lead project, a high-grade metal project located in northern Greenland which is believed to be one of the world's largest undeveloped zinc-lead projects.
The minerals exploration and development company said the project holds a JORC resource of 131.1m tonnes @ 4.5% zinc and lead for 13bn pounds of contained zinc and lead metal.
The licence is valid until 31 December 2023 and continues UFO’s strategy of identifying counter-cyclical opportunities in first class mining jurisdictions with ‘excellent upside potential.’
"The Company and its advisers continue to assess new projects and identified an opportunity to secure an exploration footprint in northern Greenland on strike and adjacent to the world class undeveloped Citronen zinc-lead project,” said CEO, Bill Brodie Good.
IBK believes the projects offer an attractive entry into one of the world's premier silver belts and will soon start marketing them to a range of potential investors and project partners.
UFO said it will continue its efforts in exploring and developing the projects and simultaneously consider third party funding options to develop and mine the projects.
In other recent news, the company has also recently completed a detailed geological mapping and sampling programme at the Hamersley iron ore projects in Australia with field observations indicating that two of its prospects may be part of the same larger system.
The two projects, which have demonstrated “great potential” are located in the Hamersley Province which is known as one of the premier iron ore producing regions of the world.
Preliminary handheld XRF results are consistent with those observed in the 2019 field programme, with reported ranges of between 40% and 70% iron.
Alien Metals has now commenced preparing a Program of Works ("POW") for submission ahead of drilling.
Meanwhile, North American advisor firm IBK Capital has commenced the marketing process for the Company's San Celso and Los Campos silver projects which are located in Mexico.
The process for the silver projects follows the successful earn-in transaction with Capstone Mining announced earlier in October 2020 regarding UFO’s Donovan 2 copper-gold project.
Complementary Acquisitions
Alien Metals has executed an acquisition-led strategy headed by a high-quality geological team to build a strong portfolio of diversified assets including two recent acquisitions in 2019
These include the Brockman and Hancock Ranges high-grade iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.
In addition to progressing its portfolio of assets and following its strategic review of its portfolio of silver and precious metals projects in Mexico, Alien Metals has identified priority exploration targets within its 9 mining concessions which it is working to advance systematically.
The Company’s silver projects are located in the Zacatecas State, Mexico’s largest silver producing state which produced over 190m oz of silver in 2018 alone accounting for 45% of the total silver production of Mexico for that year.
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All the major miners are working on their mid to long term plans relating to decarbonisation. Newmont is no exception and gave a fascinating insight into its future plans within its recently released Climate Strategy and Sustainability Update. It is aiming for a greater than 30% reduction in absolute GHG Emissions and Intensity by 2030 (Scope 1 and 2) to be delivered from current operating assets through a shift to renewable energy, fuel switching, fleet electrification, and site energy efficiency improvements through its Full Potential program.
This will be delivered as part of an investment of $500 million over the next five years announced in December 2020 to support its climate initiatives and reduce carbon footprint. Newmont highlighted Scope 2 renewable energy opportunities at operations to total over 800,000 t CO2e reduction including ~10% reduction at Yanacocha via a wind power project, ~10% at Tanami via wind and solar, ~20% at Penasquito via a solar project and ~45% from wind and solar at Boddington. These renewable energy projects at four sites alone could represent ~80% of the emissions reduction to achieve its Scope 1 and 2 2030 targets. The company also plans for battery energy storage at Tanami and at Merian in Suriname.
In addition to these renewable energy opportunities, Newmont has also identified additional Scope 1 emission reductions though evaluation of its major projects to determine optimal paths to reduce costs and emissions. And as part of this in the next ten years it plans to deploy trolley assist at its Penasquito gold mine in Mexico via retrofit. In the webcast for the Climate Strategy and Sustainability Update the company stated: “The haulage fleet is already equippped with diesel electric wheel drive motors. By adding overhead power lines on the most fuel intensive haulage routes, we can provide electric power to the Penasquito fleet saving up to $30 million and potentially reducing our emissions by over 20,000 t of carbon per year.”
It also mentioned a battery electric underground equipment fleet at Tanami Expansion 2 but gave no additional details on this. In processing up to 2030, less energy intensive ore separation and eco–efficiencies in comminution were mentioned.
Back to the trolley plan – in 2020 Penasquito was operating 79 Komatsu 930E electric drive haul trucks (with another four parked). The mine is 780 km northwest of Mexico City, in the state of Zacatecas and has two open pits –Peñasco and Chile Colorado. Komatsu working with its AC electric drive supplier Wabtec, has previously told IM that a new Trolley Assist Package for its 930E-5 trucks will be launched in 2022 so the retrofitting at Penasquito is likely to be focused on the newer 930Es at the operation. The 830E-5 package is already available and is being retrofitted now on four trucks at Copper Mountain Mining in BC, Canada.
Longer term towards its ultimate goal of becoming net zero carbon by 2050 the company laid out some ambitious targets including a combination of battery electric haul trucks, carbon sequestration, “nature-based” solutions and trolley assist across all sites and projects plus conversion to solar, geothermal, wind, hydro, & hydrogen power across the board. And to give Newmont credit, its sustainability progress is already marked, exemplified by the “all-electric” underground Borden gold mine in Ontario, in-depth work on optimisation of haul routes at all its mines plus the use of variable frequency pump motors at multiple sites – a project is already underway on this at a freshwater pumping station at Penasquito.
Teck is cementing its position as a global mining major – it is the world’s largest net zinc miner & second largest steelmaking coal producer plus will double its copper production by 2023 as Quebrada Blanca 2 comes online. In its just released TCFD-aligned Climate Change Outlook 2021 report, Teck outlines how it will continue to create shareholder value by producing metals and materials that are essential for a low–carbon future while also taking steps to reduce emissions to achieve the goal of being a carbon–neutral operator by 2050.
The report contains some interesting reviews of the company strategy to achieve lower emissions, including through mining fleet electrification. Along with other mining majors Teck argues that shifting to electric-powered mining equipment presents an opportunity for the mining industry to reduce mine site carbon emissions.
Teck states: “As we move towards low-carbon material movement, low-carbon electricity is likely to play a significant role. One of Teck’s advantages is having access to low-cost, low-carbon electricity where, under the appropriate conditions, electrified equipment could potentially deliver lower operating costs than traditional diesel-based solutions. In the early years of equipment electrification, while it is likely that capital costs might be higher than current diesel-based alternatives, projections suggest that electric vehicles will deliver a lower TCO. Furthermore, as electric vehicles reach capital cost parity, the TCO benefits of electrification will only increase. The development and presence of sufficient low-carbon electricity generation and transmission will also be critical to leveraging electrification as a means of decarbonisation. Uncertainty remains as to how these cost structures will evolve over time; however, our strategy to decarbonise contemplates the impacts of energy supply chain constraints and costs.”
On Scope 2 emissions it is making progress. “At our Quebrada Blanca Operations, we are currently sourcing 30% of our total energy needs from solar power, and in 2020, we entered into a long-term power purchase agreement for our Quebrada Blanca Phase 2 project. Once effective, more than 50% of total operating power needs at Quebrada Blanca Phase 2 are expected to be from renewable sources. We have also entered into a long-term power purchase agreement to provide 100% renewable power for our Carmen de Andacollo Operations in Chile. The Carmen de Andacollo renewable power arrangement took effect in September 2020 and will run through to the end of 2031. This action will result in significant emissions reductions at Carmen de Andacollo by eliminating nearly 80% of its operating (ie Scope 1 and Scope 2) emissions.”
On Scope 1, Teck’s primary focus for the remaining emissions cuts required to achieve its interim 2030 goal of a reduction in the carbon intensity of its operations by 33% is on addressing diesel consumption in its mobile equipment. At its mining sites, it is already advancing several projects to assess the viability of electric mobile equipment. “In 2020, at our Highland Valley Copper Operations, we trialled an electric boom truck designed for underground operation. At our Elk Valley Operations, we continue to implement the electric crew bus pilot project, with promising results; in 2021, we have placed orders for more buses and are investing in electrical upgrades that will provide sufficient capacity for further expansion of the fleet.”
The intention with the electric bus pilots from the outset—in addition to decarbonising the buses themselves—has been to gain experience with these technologies, experience that could be transferred to how we evaluate and adopt larger and more mining-specific pieces of equipment. Teck said: “This is now translating
into piloting technologies in larger classes of vehicles to further understand how they operate under conditions different from the buses, where there is continuous operation over longer periods of time, which will in turn require different battery charging strategies and energy management.”
Teck adds that it has also learned that it can accelerate innovation by working with others facing similar challenges. “We’re working with industry groups like the International Council on Mining and Metals (ICMM) on an initiative [Innovation for Cleaner, Safer Vehicles] to work collaboratively with original equipment manufacturers (OEMs) to reduce GHG emissions from large mobile mining equipment (eg haul trucks). This engagement – including the world’s largest mining and metals companies and our key OEMs – brings together the key suppliers and purchasers of mining equipment to tackle one of our most material sources of GHG emissions.” In 2021, Teck also became a member of Electric Mobility Canada, a national membership-based not-for-profit organisation dedicated exclusively to the advancement of e-mobility.
“Working with these partners reflects our commitment to deploying emerging carbon abatement technology at appropriate points in the life cycle of our operation, and also to undertaking research and development of new emission abatement technology. Innovation is part of Teck’s history, and we believe it will play an even larger role in our future as we look for newer and better ways to reduce our GHG emissions. However, the path to decarbonising equipment is not without
challenges. We remain committed to overcoming these barriers through collaboration across our industry, piloting the latest technology and staying agile to take advantage of low-carbon technologies as they emerge.”
In some cases, Teck adds that emerging options are more appropriately suited for its value chain partners, but these may also serve as a stepping stone to applications at its operations. “One such opportunity arose in trucking concentrate from our Highland Valley Copper Operations to Ashcroft, BC, where the concentrate is loaded on rail for further transportation. Working together with our partner, an electric concentrate truck has been purchased to pilot the suitability of this technology for the specific application. Our initial analysis suggested that it was the most promising application of a battery electric vehicle of this class. Not only will this pilot help to reduce GHG emissions in our value chain, but if successful, this technology may be applied in equipment at our operations. The pilot will take place throughout 2022, t which time the results will be analysed to inform future equipment decisions.” IM previously revealed that this involves a Western Star 4900 tractor converted to battery electric operation by MEDATech using its innovative ALTDRIVE technology.
The company also believes it is possible to amplify and accelerate emissions reductions via innovation integration. “One example today is our use of orebody knowledge technologies such as smarter shovels, where sensors and analytics are leading to improved mill productivity, reduced energy use and less water consumption. A second example of innovation and decarbonisation is autonomous vehicles. As autonomy becomes more proven in mining, it may enable the use of different types and sizes of equipment, which in turn will enable different low-emissions alternatives. While fully battery electric ultra-class haul trucks
are yet to become commercially available, smaller classes of haul trucks and mining equipment are available. This in turn suggests that one alternative to today’s approach could be the use of larger numbers of smaller autonomous haul trucks combined with a loading system that leverages the orebody knowledge technologies discussed above. This approach could result in the adoption of battery electric vehicles at a faster pace while also delivering cost and footprint benefits. While it is too early to say whether or not this alternative approach to mining will ultimately be fruitful, we believe that this type of thinking and exploration is critical in helping to
identify and progress emissions reductions at the magnitude that are required.”
In late April, on behalf of JCHX Mining Management, Jianzhong Zhang signed a handover document with ERG for transfer of ownership of the Lonshi copper mine in DRC, located only 3 km from the Zambia border, which Zhang told IM “blew the horn of JCHX marching into its own mining development.” Zhang is the Managing Director JCHX’s DRC subsidiary Jimond Mining Management Company (JMMC) and is tasked with getting the mine up and running as soon as possible to take advantage of copper price highs.
He is already highly experienced having overseen JMMC’s first ramp development then underground mining contractor role at Ivanhoe Mines and Zijin Mining’s huge Kamoa-Kakula project which recently celebrated start up of its Phase 1, 3.8 Mt/y concentrator plant. Over the border JCHX is also the main mining contractor at NFC Africa Mining’s Chambishi operation.
JCHX-JMMC team underground at Kamoa-Kakula project in a 10 m high by 7.5 m wide high–grade, drift–and–fill stoping area
But the significance of Lonshi runs deeper. As a traditional mining services provider, over the past two decades, JCHX has helped build hundreds of mines both at home in China and abroad with expertise in shaft sinking, raise boring, lateral and ramp development using the latest mechanised methods and equipment. Most recently on July 3, the contract for capital development and construction works at Shalkiya lead & zinc mine in Kazakhstan was signed between a consortium of JCHX Mining Management and China Civil Engineering Construction Corporation.
Zhang told IM: “We have gained lots of experience through our performance which is reflected in praise from the clients. We have only been in the DRC for five years, where we have become a leading mining contractor and developer in our traditional mining services field but now we are fulfilling our ambition to become a leafing mining owner and operator and have been acquiring copper mines. Before Lonshi, in 2019, JCHX successfully purchased the Dikulushi copper mine and although its scale is quite small, it provided a chance for us to test our abilities as we looked to broaden our business scope.”
But Lonshi is the first big milestone and is highly significant for JCHX group and its owner Chairman Xiancheng Wang, who comes from a family with six generations of mining experience. Zhang adds: “This is a major transformation because JCHX has always worked as a contractor and never a client. Lonshi copper mine, a open-pit that has been partially developed by several owners has a deposit of 0.85 Mt of copper and its hundreds of hectares of concession area offers great potential finding of more metal in the near future. This successful procurement will strengthen JCHX’s ambition to become a major mining company rather than only a mining service provider.”
To date a feasibility study has been completed and a team structured to carry out a target that the copper concentrator will be operational within two years. JCHX hopes to create a new model for mine development in DRC by optimising its existing resources such as engineering, construction, and mining capabilities in order to achieve “more output with less input.”
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2021) - Aguila American Gold Limited ("Aguila" or the "Company") (TSXV: AGL) (OTCQB: AGLAF) (WKN: A2DR6E) is pleased to announce it has acquired 100% ownership through staking, the Cora copper project, located in Pinal County, Arizona. The project was identified during an extensive and ongoing project generation program targeting copper deposits within mining supportive jurisdictions of North America.
Aguila is focused on copper and precious metal exploration and development within the major mining belts of the Western USA. The Company targets under-explored districts where post-mineralization cover masks areas of high geological prospectivity in the vicinity of major mines.
The Cora project lies 75km NNE of Tucson, within the heart of the southern Arizona copper belt. The project is 100% owned by Aguila, secured by 46 granted BLM lode mining claims covering a total of 3.84 sq km. Many of North America's largest copper mines and development projects lie within 100km of Cora, including Ray, Miami, Resolution, Florence and Silver Bell (see Figure 1). Drilling at Cora was last recorded over 40 years ago, when significant widths of oxidized copper were intersected beneath shallow alluvial cover over an area exceeding 1 square kilometer.
Key Points
The Cora copper project lies centrally within the Arizona copper belt, in the vicinity by world class porphyry, VHMS and skarn type copper projects.
The project is centered 2km east of the North Star copper mine under shallow cover. North Star was a producer of copper ore for Miami Copper Co., and ASARCO at Hayden (Arizona) in the mid 1900's.
Original exploration company records held by the Geological Survey of Arizona indicate past drilling at Cora intersected oxide copper mineralization over widths in excess of 100m, beneath shallow alluvial cover, over an area of at least 1km by 1km. Intervals include: DH5: 99.7m (327ft) @ 0.28% Cu , below 10.7m of alluvial cover (California Steel Co., 1950s) DH4: 39.6m (130ft) @ 0.38% Cu , below 47.2m of alluvial cover (California Steel Co., 1950s) DH1*: 225.5m (740ft) @ 0.29% Cu , below 42.7m of alluvial cover (California Steel Co., 1950s)
Drilling results are historical in nature and have not been verified by a "qualified person" as defined by National Instrument 43-101. Drill locations are determined from maps with local grid coordinates of the day which cannot converted to modern coordinates with a high degree of accuracy. Results therefore should not be relied upon and should only be considered an indication of the mineral potential of the project.
* The location of DH1 is inconsistently recorded, placing it within or immediately adjacent to Aguila claims. Results therefore should not be relied upon and should only be considered an indication of the mineral potential of the project.
Exploration in the vicinity of Cora was undertaken from the 1950's until the 1970's, with drilling completed by California Steel Co., Southwest Mining Co, Magma Copper Co, Essex International Inc and Asarco LLC. No record of drilling has been located since 1976 with a vast majority of historical exploration focused on outcropping mineralization at the adjacent North Star mine.
Geological logs from holes drilled by Magma Copper Co. immediately west of Cora, indicate copper mineralization may be associated with highly altered, possible Laramide aged intrusions, consistent with a potential porphyry copper setting and analogous to many large copper deposits in Arizona.
Mapping by Magma Copper Co. identified propylitic, argillic and potassic alteration within Laramide-aged granite and monzonite intrusive rocks to the south of the North Star Mine and west of Cora, along with regular copper occurrences.
Geophysical surveys (gravity, CSAMT) were completed in the vicinity of the North Star mine by Equinox Exploration Corp in 2010 to map the thickness of cover. Based on this information, thickness of cover is expected to range between 50m and 100m at Cora.
Aguila is now compiling historical data and preparing for geochemical sampling and geophysics prior to drilling. Historical drilling intercepts suggest the project is drill ready.
Aguila continues to progress its project generation and acquisition strategy for copper and precious metals in highly prospective mineral belts. The rapidly growing demand for copper due to the accelerating uptake of electric vehicles and the supporting infrastructure, aligned with the growing uncertainty of sustainable ethical supply, makes US targets a high priority.
"The newly staked Cora project represents an exciting first step for Aguila into copper exploration in the Western US," commented Mark Saxon, President & CEO of Aguila American Gold Limited. "We have been progressively and patiently assessing projects, and Cora stands out as a significant copper prospect in one of the world's premier copper producing regions. The timing could not be better, as secure global copper supplies are tightening, coinciding with strong demand growth as a result of a global infrastructure, electrification and renewable energy boom. We look forward to applying modern exploration techniques to this under explored district."
The Cora copper project is located in Pinal County, Arizona, approximately 20km southwest of Florence and 75 km NNW of Tucson. Pinal County is a prolific copper producing region and is host to several large, world class copper mines and deposits including Ray, San Manuel, Silver Bell, Mission, Resolution and Miami (1.6 Bt @ 0.63% Cu). The project is accessible by Interstate 10 to the West and highway 79 to the East with power and railway access nearby.
Figure 1: Regional location map for the Cora copper project with major copper deposits.
The claims held by Aguila cover the flat lying pediment to the east of and adjoining the historic North Star copper mine. Widely spaced scout drilling during the 1950's within the area secured by Aguila is reported to have intersected significant widths of oxide copper mineralization beneath shallow cover (11m to 70m). Mineralization was encountered across an area of approximately 1km by 1km.
Past exploration was predominantly focused on the fault-hosted North Star copper mine. Drilling identified a significant zone of structurally controlled copper oxide mineralization that extends below cover into the ground held by Aguila. Early explorers interpreted mineralization to be associated within detachment faults, however, a review of all available historical data by Aguila indicates a possible porphyry copper-molybdenum association.
The Aguila review noted:
Diamond drill logs from Magma Copper Co. describe altered intrusive rocks (monzonite, diorite, latite porphyry) throughout several drill holes, with alteration described as argillic in nature, more consistent with a porphyry copper setting;
The lack of reported specular hematite associated with mineralization is inconsistent with a detachment fault model as this is a very common accessory mineral in detachment fault hosted deposits in Arizona and Nevada;
The qualified person for the Company's projects, Mr. Mark Saxon, the Company's Chief Executive Officer, a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, has reviewed and verified the contents of this release.
Thursday,15 July 2021 (YJC) _ Police in Paris fired tear gas and made arrests as they tried to disperse demonstrators who marched throughout France over new coronavirus restrictions.
Police in Paris fired tear gas and made arrests as they tried to disperse demonstrators, many of them sceptical of vaccines, the so-called “anti-vaxxers“, who marched throughout France over new coronavirus restrictions.
Some of the protests began as early as Wednesday morning in Paris as the annual military parade for the traditional Bastille Day parade, watched by President Emmanuel Macron, was taking place along the Champs-Elysees.
The protests went on into Wednesday night, with protesters captured on video clips posted on social media, also aiming fireworks at police.
The demonstrators, many of them unmasked, are unhappy at the decision announced on Monday to oblige health workers to get vaccinated and for people to show a vaccine health pass to enter most public places. Those who are not vaccinated would need to show a negative test result.
The announcement prompted a record number of French people to book appointments for COVID-19 jabs.
“This is in the name of freedom” was the message from some of the protesters.
In one area of the French capital police fired tear gas to disperse the crowd.
The declared route was not respected, the prefecture of police said in a tweet, deploring the “throwing of projectiles” and lighting of fires by the protesters.
Throughout Paris some 2,250 people protested, while other demonstrations took place in Toulouse, Bordeaux, Montpellier, Nantes and elsewhere. The French authorities put the total number of protesters at 19,000.
ST. JOHN'S, Newfoundland and Labrador--(BUSINESS WIRE)--Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expects to report attributable quarterly royalty revenue† of approximately $21.8 million ($0.53 per share) for the second quarter ended June 30, 2021. This compares to quarterly revenues of $17.8 million ($0.43 per share) in Q1 2021.
Base metal (primarily copper) revenue of $9.4 million is up 24% from Q1 2021 base metal revenue of $7.6 million, and represented 43% of total royalty revenue. Performance in the quarter was positively impacted by stronger metal prices, but was offset by lower copper production from both 777 and Chapada.
During the quarter, Vale commenced production from its new underground mine at Voisey’s Bay and Lundin Mining continued to aggressively drill near mine targets at Chapada in support of ongoing project expansion studies.
Potash revenue of $4.5 million is up 11% from Q1 2021 potash revenue of $4.1 million and represented 21% of total royalty revenue. Steady price improvements over the past year continued to be reflected while overall portfolio based production was down slightly from Q1 but similar to Q2 2020 production. Average realized prices for royalty calculation purposes continued to reflect timing of sales recognition lags with realized prices in Q2 generally aligned with Q1 2021 market prices. Market prices based on US Midwest and Brazil delivery increased by 50-60% during Q2 and these are expected to result in higher realized prices to Altius in the coming quarters.
During the quarter, Mosaic closed its Esterhazy K1 and K2 mining shafts while it continues to ramp up production from the new K3 mining shaft which is expected to reach full capacity early in 2022. Nutrien announced two 500,000 tonne increases to its annual potash production guidance during the quarter in response to increased demand.
Iron ore revenue in the form of dividends received from Labrador Iron Ore Royalty Corporation (“LIORC”) was $5.0 million, or 23% of total royalty revenue, which compares to $2.9 million in Q1 2021. The 72% increase reflected strong royalty revenue and a significant equity dividend paid by the Iron Ore Company of Canada (“IOC”) as it continued to benefit from strong demand and pricing for its high-purity iron ore products that result in lower emission steel making. The Corporation is a significant shareholder of LIORC which serves as a pass-through vehicle for royalty income and equity dividends related to the operations of IOC.
On April 1, 2021, the Corporation received 600,000 Champion Iron Limited (“Champion”) shares as consideration for the sale of its portion of secured debt of Alderon after Champion acquired the assets of Alderon through a court appointed and competitive bidding process. Interest income of $636,000 on this loan recovery is included in the table below under “other royalties and interest”. Champion continued work to update the prior positive feasibility study and revise the project scope for its recently acquired Kami Iron Ore project. Kami is located nearby to the south of IOC’s operations and a few kilometres southeast of Champion’s Bloom Lake operations and is subject to a 3% gross sales royalty in favour of Altius. The Kami project hosts extensive resources of iron ore that are expected to be capable of producing high-purity, premium priced concentrate products.
Thermal coal revenue of $2.1 million, or just under 10% of total royalty revenue, compares to $2.9 million in Q1 largely due to slightly lower seasonal electricity demand at the integrated Genesee mine and power plant and only nominal revenue from the Sheerness operation.
Altius Renewable Royalties (ARR: TSX) (“ARR”), of which the Corporation is a controlling shareholder, reported the creation of five new royalty interests on US based development stage wind and solar projects. These royalties arise from project sales by investee partner Tri Global Energy LLC that collectively represent more than 1,100 MW of new renewable energy generation capacity. More information can be found at arr.energy. ARR, through subsidiary Great Bay Renewables which is jointly controlled with certain funds managed by affiliates of Apollo Global Management, Inc., also continued to advance several new royalty-based investment opportunities during the quarter that it believes will lead to additional capital deployment throughout the remainder of the year.
Summary of attributable royalty revenue
(in thousands of Canadian dollars) Three months ended
June 30, 2021 Three months ended
March 31, 2021 Three months ended
June 30, 2020 Base metals $9,394 $7,627 $4,835 Iron ore (1) $5,029 $2,874 $1,293 Potash $4,516 $4,072 $4,012 Thermal (electrical) coal $2,140 $2,926 $2,206 Metallurgical coal $0 $58 $466 Other royalties and interest $751 $203 $223 Attributable royalty revenue $21,830 $17,760 $13,035 See non-IFRS measures section of our MD&A for definition and reconciliation of attributable royalty revenue (1) Labrador Iron Ore Royalty Corporation dividends received
Second Quarter 2021 Financial Results Conference Call and Webcast Details
Additional details relating to individual royalty performances and asset level developments will be provided with the release of full financial results, which will occur on August 9, 2021 after the close of market, with a conference call to follow on August 10, 2021.
Date: August 10, 2021
Time: 9:00 AM ET
Toll Free Dial-In Number: +1(866) 521-4909
International Dial-In Number: +1(647) 427-2311
Conference Call Title and ID: Altius Q2 2021 Results, ID 9379845
Webcast Link: https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=A7CADED0-3E8D-44EF-AF03-8F7FBFFF082E
†Attributable royalty revenue is a non‐IFRS measure and does not have any standardized meaning prescribed under IFRS. For a detailed description and examples of the reconciliation of this measure, please see the Corporation’s MD&A disclosures for prior quarterly and annual reporting periods, which are available at https://www.altiusminerals.com
About Altius
Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These each hold the potential to cause increased demand for many of Altius’s commodity exposures including copper, renewable based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore, and potash. Altius has 41,504,597 common shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.
Forward-Looking Information
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Altius provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Altius believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. Altius does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.
Spot gold was sitting at $1,832/oz at around 9am UK time. Shares in London-listed Endeavour Mining and Centamin were up 3.56% and 2.22% respectively in early trading.
"Gold's recent bounce likely reflects the slowdown in liquidations more than an urgency to build positions at this stage," UBS said this week.
"That said, the selling in futures over recent weeks has left net speculative positions at their leanest since the end of March, which could start to look supportive in the short term as this is basically where the market started before it staged its Q2 rally towards US$1,900."
Powell is standing firm despite a couple of big inflation prints from the US in the last few days. Yesterday's US PPI figure showed an increase of 1.0% after an already strong 0.8% increase in May.
Only three out of the TSX's top gold miners fell overnight, with the gold sector rising by a collective 0.3% overall.
Base metals were softer overnight, with nickel losing 1% to $18,574 per tonne, and copper down 0.8% to $9302.55/t.
Iron ore was slightly lower, while oil dropped 2.8%.
The S&P 500 was down by 0.24%% and ASX futures were down 10 points.
July 15, 2021 – TheNewswire - Vancouver, Canada - Metallum Resources Inc. (TSXV:MZN) is pleased to report that it has completed its previously announced private placement financing with the issuance of 2,750,000 common shares at $0.11 per share, raising $302,500 in flow-through funds. The shares issued on closing are subject to a resale restriction until November 14, 2021.
A cash finder’s fee of 6% of the financing proceeds has been paid in relation to the financing. Management intends to use the proceeds of the placement for conducting exploration work on the Company’s Superior Zinc and Copper Project.
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2021) - Altaley Mining Corporation (TSXV: ATLY) (OTC Pink: ATLYF) (FSE: TSGN) ("Altaley" or the "Company") is pleased to provide shareholders the preliminary production results for the quarter ended June 30, 2021 ("Q2 2021") of its Campo Morado Mine located in State of Guerrero, Mexico.
"I am happy to highlight Altaley's Q2 2021 Campo Morado production results where our operations team have achieved significant increases to net revenue and metal recoveries," states Ralph Shearing, CEO & President. "Net revenue has increased on average by 36% to total US$ 16.2 million for the Q2 2021. Average Q2 metal recoveries have increased in all metals - gold up by 50%, silver up by 23%, lead up by 18% and zinc up by 6%. These increases have been achieved by a combination of increasing realized metal prices, and process improvements implemented by the operations team who have performed above management expectation for the quarter."
Table 1
About Altaley Mining Corporation
Altaley Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.
Altaley's Tahuehueto mining project is in north-western Durango State, Mexico where construction has been advanced to an estimated 60% of completion. Upon closing of the recently announced US$25 million funding package, Altaley will have funding available to finish construction of its 1,000 tonne per day processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The Company is targeting initial pre-production by end of 2021 and ramping up to full production capacity during Q1 2022.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,150 tonnes per day and is currently estimated to be Mexico's 6th largest zinc producer.
The benefits of robotic equipment have long been understood in mining applications, however common mining robots tend to be cumbersome and highly specialised – a great tool for drilling in large, open areas, but not much else, according to Raymond Ippersiel*.
Looking to apply mechanised solutions to ultra-deep, narrow-vein applications, some operations are employing a different kind of robot. Compact, highly versatile remote-controlled demolition robots are uniquely suited for the demanding conditions deep underground. These compact machines offer exceptional power-to-weight ratios – on par with classic excavators three times their size – while an advanced three-part arm provides unrivalled range of motion for drilling, scaling, breaking and bolting in any direction.
But there is a lot more these flexible, hard-hitting machines can offer modern mining operations. In addition to ultra-deep applications, the power and versatility of remote-controlled demolition machines makes them an ideal solution for support tasks such as shaft revitalisation and maintenance. Miners are finding employing a demolition robot not only speeds up progress in these situations, but also increases safety by taking on much of the physical work while keeping employees out of harm’s way.
Revitalisation versatility
Mining techniques have changed over the years, and productivity has decreased steadily since the 1960s. For many operations, returning to old shafts with more modern equipment can supplement production. However, getting these shafts in shape to meet modern safety regulations can be a difficult process requiring substantial work. Most are littered with rubble, collapsed supports and downed utilities, making the process of opening them up slow and dangerous.
In these types of situations, the versatility of remote-controlled demolition machines can minimise equipment and personnel requirements for highly efficient renovations. Armed with a suite of attachments, a demolition robot can perform almost any required task.
A breaker, for example, is used for scaling during initial refurbishment work, and a grapple is used to handle rubble and refuse to clear the bottom as well as assist in installing utilities. To dismantle old supports, steel or timber, a saw/grapple combination can be used. This reduces handling and cutting the steel to premium scrap lengths while working off a galloway.
Primary and secondary blasting and rock bolting can all be managed with the drill attachments. Miners can then switch to a beam handler for erecting support ribs and installing wire mesh. These dexterous attachments can also be used for setting new services such as rails, pipes, or cables.
Finally, shotcrete attachments are also available.
More efficient maintenance
These attachments also make it easier for mines to maximise productivity for shaft and tunnel maintenance tasks. Replacing large crews with a small team and a demolition robot can result in a significantly more efficient process.
One operation was able to eliminate all manual labour in a shotcrete removal application and advance their maintenance schedule by months. They positioned the demolition robot on a platform that rotated around the core of a shaft boring machine. After the shotcrete was removed, they used the robot to pin and bolt new screening.
In addition to making shaft maintenance easier, demolition robots are increasing safety and efficiency for widening operations. They can be underhung from a galloway stage, hammer, drill and blast, drill and split and replace old clam buckets for mucking out.
The future of mining
With extensive equipment and attachment options available from innovative manufacturers, there is an opportunity to use demolition robots in just about every high-risk, heavy-labour shaft maintenance situation. The possibilities are only limited by the imagination.
*Raymond Ippersiel is a Training & Application Specialist at Brokk Inc. He has 10 years with the company and specialises in robotic demolition applications for the tunnelling, process and demolition industries
Record US steel prices push cost of data centre construction
7h | Melanie Mingas
Record steel prices in the US pose a risk to the construction of new data centres at a critical point in the industry's growth trajectory.
Last week, the US set a new record for hot rolled sheet steel prices, which reached $1,800 per metric ton (MT). In the US, the prior record for sheet was approximately $1,200/MT, set in early 2008.
Speaking to Data Economy on 8 July, John Anton director of pricing and purchasing at IHS Markit said: "It's a bad story for Europe, it's a horrible story for the US.
"In the US, bar makers, most of your construction steel, is made in electric furnace makers and they have largely just passed on high input costs. Hot roll sheet is up, as of recently, about $1,300, so a $1000 expansion in margin. Prices were down in the $480-$500 per metric ton range at the worst of the recession. In the US normally they are centred around $700/MT. It was low during the recession, down to about $500, but just reached over $1,800 this week for hot rolled," he continued.
Commenting on how this compares to 2008, Anton continued: "Not only has this broken the record but it shattered it.
"Rebar is normally around $600/ MT and is pushing $900. It is expensive; that's 50% above normal, but it's nowhere near as bad as sheet," he added.
JLL's 2020 Year-End Data Center Outlook showed that at the end of 2020 data centre construction too reached "near-record levels", with a pipeline of 611.3MW in the US alone.
Outlook to 2022
The current global demand dynamics look set to continue – potentially until mid-2022 – causing headaches in the data centre construction sector.
Joe Cusick, CEO of Soben's new US unit, expects a continued impact on construction costs for those building new data centres.
On the price of steel he said: "Yes it’s going to stay elevated. There is no end in sight to that and it is the availability, the supply chain, it’s the cost and schedule and logistics of getting that stuff shipped or manufactured in country."
As a result, contractors re revising their prices and shortening the terms on quotes.
Cusick said: "The bidding process is getting impacted by it obviously. Contractors have elevated pricing and they are almost hedging their numbers as well, based on if some of the biggest contractors or fab plants can stock pile this stuff. You have it less for steel but certainly for commodities like copper they have it all stockpiled and they can take advantage of the market."
Cusick is based out of Soben's new Chicago, US headquarters. Prior this role he was as director at Linesight, a professional services consultancy focused on the global construction industry, where he led the project controls delivery on a $2 billion data centre programme and was engaged on more than $8 billion in construction projects.
Anton reports that allocation – i.e. rationing – caused issues between March and May, creating a situation where "people were ignoring pricing to get supply". By way of example he said an order for 10,000 tons would deliver 9,000.
Sharing his outlook, he continued: "Availability is better now than it was a month and a half ago for sheet steel. It's still quite bad but should improve. Imports are coming and supply should rise, which is the first piece of good news. Prices should fall which is the second bit of good news, but it won't be quick. Early 2022 should be better than it is now, but it could be late 2022 before things are back to approaching normal."
Steel products made at POSCO's Gwangyang steel mill
Hyundai Heavy doockyard
South Korea’s major steelmakers are demanding a sharp price hike for steel plates used in ships, adding to difficulties faced by domestic shipbuilders, which have yet to recover from the pandemic-caused slowdown.According to the steel and shipbuilding industries on Monday, Korea’s two largest steelmakers, POSCO and Hyundai Steel Co., have proposed the prices of steel plates they offer to shipbuilders increase to 1.15 million won ($1,002) a ton in the second half, up 64% from 700,000 won in the first half.Steelmakers and shipbuilders negotiate the contract prices of steel plates used to make ships twice a year. The first-half price of 700,000 won per ton is a 17% increase from 600,000 won earlier.“There’s a big price gap between the two sides this time. It’ll take quite some time before they reach an agreement,” said an industry official.The two steelmakers are currently in talks with Korea Shipbuilding & Offshore Engineering Co. (KSOE), Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co.Industry watchers say steelmakers want to narrow the gap between the spot prices and the contract prices they offer to big clients such as shipbuilders.Steel plates sell at about 1.3 million won a ton in the open market.POSCO and Hyundai Steel have steadily increased the prices of their steel products to offset the rising prices of steelmaking raw materials such as iron ore.A rebounding global economy has boosted the price of iron ore, a key raw material, from $154.9 per ton in February to $226.5 in May -- a 46% increase.The steelmakers said further steel price hikes are overdue given that the local shipbuilders are enjoying a rally in ship orders with increasing cross-border cargo shipments.The local shipbuilders, however, say that they are still struggling to recover from the pandemic-caused economic downturn and it normally takes a couple of years for the recent ship orders received to be reflected in their earnings.KSOE, the intermediate shipbuilding holding company of the Hyundai Heavy Industries Group, posted a first-quarter operating profit of 67.5 billion won and is forecast to report similar earnings for the second quarter.Meanwhile, Daewoo Shipbuilding and Samsung Heavy are expected to remain in the red for a second consecutive quarter in the three months to June.Steel plates account for about a fifth of total shipbuilding costs and an increase of 50,000 won per ton usually costs a shipbuilding firm an extra burden of 300 billion won annually, according to shipbuilding officials.“While the steelmakers are already posting decent earnings from price hikes and rising demand, we are not. Any steel price increase should be made at an appropriate level,” said an official at a local shipbuilder.Last week, POSCO, the country’s top steelmaker, said its second-quarter operating profit soared to an all-time high of 2.2 trillion won on a consolidated basis from 167.7 billion won a year ago on strong demand from automakers and shipbuilders.Kyung-Min Kang at Kkm1026@hankyung.com In-Soo Nam edited this article.
Monday, 12 July 2021 16:01:04 (GMT+3) | Istanbul
According to the preliminary data released by Statistics South Africa (SSA), in May this year South Africa’s manufacturing output increased by 35.3 percent compared to the same month of 2020.
In May, the production of basic iron and steel, non-ferrous metal products, metal products and machinery increased by 42.0 percent on year-on-year basis. In the given month, the production of basic iron and steel products in South Africa rose by 71.2 percent, while the production of structural metal products was up by 56.4 percent, both compared to the same month of 2020. In May this year, the production of basic iron and steel products in South Africa was up by 1.3 percent, while the production of structural metal products in South Africa rose by 0.1 percent, both on month-on-month basis.
For basic iron and steel products, the estimated seasonally adjusted sales of basic iron and steel products (at current prices) in May this year decreased by 10.9 percent month on month, amounting to ZAR 10.99 billion ($757.80 million).
The Australian sharemarket closed barely changed on Tuesday after fading from a strong start, bouncing up a few points in the final moments of trade as the Prime Minister announced a cash rescue package for Covid-stricken NSW then promptly sinking again.
The S&P/ASX200 finished 1.4 points softer at 7332.1 while the All Ordinaries Index firmed 7.3 points to 7612.2.
CommSec analyst Steve Daghlian said the rocky session followed Wall St hitting fresh record peaks overnight and the ASX starting the week firmly in the green on Monday.
“We’ve had a choppy, somewhat directionless few weeks in Australia and this is after hitting a record high in the middle of June,” Mr Daghlian said.
“Since then, we’ve been faced with a number of challenges including Sydney entering a lockdown, which is now in its third week, and it doesn’t seem likely to end any time soon.”
OMG chief executive Ivan Tchourilov noted the benchmark ASX200 index had climbed up towards 7380 points early in the session before pulling back around the time the NSW Premier announced 89 new locally acquired cases in the state.
“The uncertainty around how long NSW and namely Sydney will be in lockdown is weighing on our market, as this has the potential to substantially derail the economic recovery,” he said.
Wednesday, 14 July 2021 13:38:05 (GMT+3) | Istanbul
Russian steelmaker MMK Group has released its operational results for the second quarter and the first half this year.
Accordingly, in the second quarter this year, the company’s crude steel output totaled 3.40 million mt, increasing by 3.1 percent quarter on quarter, reflecting favorable market conditions, while its pig iron production increased by 2.6 percent compared to the previous quarter totaling 2.64 million mt, driven by the increase in productivity of blast furnaces. In the given quarter, MMK’s finished steel sales totaled 3.32 million mt, up 14.3 percent compared to the previous quarter, driven by high steel demand.
In the first half this year, the company’s crude steel output totaled 6.70 million mt, increasing by 24.5 percent year on year, as no overhauls took place at converter facilities, as well as the completion of hot rolling mill 2500’s modernization. MMK’s pig iron production in the given period increased by 17.3 percent year on year to 5.21 million mt. In the January-June period this year, the company’s finished steel sales totaled 6.22 million mt, up by 25.3 percent year on year, driven by the high utilization rate of hot rolling mill 2500 after its modernization.
The company’s Turkey-based subsidiary MMK Metalurji’s total sales in the second quarter this year increased by 12.7 percent quarter on quarter to 221,000 mt, reflecting the steadying of semi-finished hot rolled stock shipments, while its total sales in the first half totaled 416,000 mt, up by 29.5 percent year on year. At the same time, exports exceeded domestic sales in Turkey.
According to MMK, seasonal recovery of demand in Russia and continued favorable conditions in global markets will positively impact the company’s sales in the third quarter. Sales will be additionally supported by the start of hot tests at the electric arc furnace facility. Completion of the reconstruction of reverse cold rolling mill 1700 and 100 percent utilization of premium products equipment will positively impact the structure of the company’s sales portfolio. Operational excellence measures implemented under MMK’s updated strategic initiatives will further boost the company’s profitability in the third quarter this year.
Dalian iron ore futures ticked higher in range-bound trade, while the Singapore benchmark slipped on Wednesday, pressured by concerns about demand prospects for the steelmaking raw material in top steel producer China.
The most-traded September iron ore on China's Dalian Commodity Exchange ended daytime trade 0.8% higher at 1,219.50 yuan ($188.36) a tonne.
Iron ore's most-active August contract on the Singapore Exchange was down 0.5% at $209.15 a tonne, as of 0706 GMT.
China iron ore futures easier on worries
"There are early signs of a turning point in Chinese demand with falling Chinese steel prices crushing margins for steel mills," Justin Smirk, a senior economist at Westpac in Sydney, said.
Lower cement prices in China, rebar makers possibly starting to incur losses, and excavator sales in May posting the first monthly drop since early 2020 point to slowing construction activity that has also been hampered by an unfavourable weather, Smirk said.
China's steel exports also remained weak, hit by tepid demand in Southeast Asian countries - its largest buyers of the construction and manufacturing material - due to a fresh wave of COVID-19 infections in the region, Mysteel consultancy reported.
Concerns about China's efforts to curb steel output this year to meet its carbon emissions goal also kept market participants largely at bay.
Iron ore supply constraints, meanwhile, kept spot prices underpinned, with the support particularly stronger for high-grade materials, as China's intense emission-control campaign pushed steel producers to use top-quality and environment-friendly ore.
Dalian iron ore futures jump as Tangshan mills resume production
Rebar on the Shanghai Futures Exchange rose 2.9%, while hot-rolled coil jumped 2.6%.
Shanghai stainless steel climbed as much as 4.1% to 17,965 yuan a tonne, its strongest level since trading of stainless steel contracts started on the Shanghai bourse in 2019.
High demand and low inventory in China lifted stainless steel prices, Huatai Futures analysts said in a note.
Dalian coking coal advanced 3.8% and coke gained 2.7%.
Union Cabinet chaired by Prime Minister Narendra Modi approved a Memorandum of Understanding (MoU) between India and Russia on cooperation in coking Coal. Coking coal is used for Steel making. MoU was signed between Ministry of Steel (India) and Ministry of Energy (Russia).
Benefits of MoU
MoU will benefit entire steel sector by reducing their input cost.
It will reduce cost of steel and promote equity & inclusiveness.
An institutional mechanism for co-operation in coking coal sector will also be provided by MoU.
Objective of MoU
MoU was signed with the objectives of strengthening cooperation between India and Russia in steel sector. The activities involved in cooperation aims to diversify source of coking coal.
What is Coking Coal?
Coking coal, also known as Metallurgical coal, is a grade of coal which can be used to produce good-quality coke. Coke is an essential fuel and reactant in the process of blast furnace for primary steelmaking. Demand for coking coal is highly coupled to demand for steel. Primary steelmaking companies also comprises of division producing coal for coking in order to ensure a stable and low-cost supply.
Where does it come from?
Coking coal comes mainly from Canada, United States, and Australia.
Characteristics of Coking coal
This coal has low content of ash, moisture, sulphur and phosphorus. It is usually ranked as bituminous. Such coal produces strong, low-density coke when it is heated under low-oxygen environment. Strength and density of coke are particularly important while using it in blast furnace because coke supports part of ore and flux burden inside furnace. Coking coal is different than thermal coal because thermal coal does not produce coke when heated.
