Mark Latham Commodity Equity Intelligence Service

Friday 10 September 2021
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Featured

The Pain Trade. ESG Inflation.

(@FahadShabbir)


MOSCOW (UrduPoint News / Sputnik - 06th September, 2021) The Nord Stream 2 gas pipeline project will likely be completed this month, Rainer Seele, the head of the Austrian oil giant OMV, told the Russian Vedomosti newspaper.


Asked when construction will be finished, Seele said "next week," adding that gas could start flowing before the end of 2021.


Kremlin spokesman Dmitry Peskov said on Thursday that the Nord Stream 2 project was nearing completion and that it was going to play a very important role in ensuring European energy security.


Russian gas giant Gazprom said in mid-August that it could deliver 5.


6 billion cubic meters of gas through the Nord Stream 2 pipeline already this year.


Nord Stream 2 is a joint venture of Gazprom and five European partners. The pipeline aims to carry Russian natural gas to Germany across the Baltic Sea. It consists of two 1,230-kilometer (764-mile) long lines with a combined annual capacity of 55 billion cubic meters of gas.


Seele told Vedomosti that the project's costs were cut down from the initial estimated sum of 950 million Euros ($1.1 billion) to 729 million euros thanks to speedier construction.


https://www.urdupoint.com/en/business/nord-stream-2-construction-to-wrap-up-next-w-1343706.html&ct=ga&cd=CAIyGjU0NTE4ZWVlZTY3NTRiMmQ6Y29tOmVuOkdC&usg=AFQjCNHvy6Ja3a4syHIL4kvFk9lT48NGB

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Cumbria mine row erupts AGAIN as Mayor demands operation goes ahead for steel production

Cumbria: Mayor of Copeland calls for further use of coal power


Speaking to Radio 4's Today Programme on Tuesday, the Conservative Mayor insisted the Whitehaven-based coal mine will be vital to produce coke and coal needed to make steel. Mr Starkie argued UK steel production will need to significantly ramp up in the coming years if the Government are to complete large green energy infrastructure projects such as tidal and solar energy farms for its "green revolution" to be a success. But campaigners say the mine, which will be operated by West Cumbria Mining, will undermine Britain's target to become 'net-zero' by 2050 and its diplomatic efforts to encourage other countries such as the US and China to wind down their coal usage.


They add how the construction will also cast a shadow over climate conference COP26 which will take place in Glasgow in November where world leaders will meet to formulate action plans to combat climate change. But Mr Starkie told the programme campaigners are not looking at the bigger picture of the requirements needed for such ambitious green projects. He said: "It is not a short-term bet, we are looking at 30-years. The demand for metallurgical coal remains and will continue to increase." Mr Starkie added how if the UK is to achieve a "green industrial revolution" then "substantial amounts of steel" will be in demand.




Mayor Mike Starkie said the plans need to go ahead to prop up the UK's green industrial revolution


The West Cumbria Mining plans near Whitehaven


He stressed as a result demand for coke and coal "is going to be huge" and the mine will fill that demand gap. Proponents of the mine also argue it will provide over 500 much-needed jobs in the area and will be a large economic boost for the area. Mr Starkie also called on the public to focus on "where the real issues are" surrounding climate change as he launched a scathing attack on the United States, China, and India for their role in greenhouse gas emissions. He branded the three nations as being responsible for "over 50-percent" of worldwide emissions while the UK only contributes "1.1 percent". READ MORE Tory touts ‘positive case’ for UK’s first deep coal mine in decades despite green backlash


Britain Talks: Locals discuss plans to open coal mine in Cumbria


The Express supports a Green revolution for Britian


But appearing alongside Mr Starkie on the show, John Ashton, the UK's former climate envoy argued that steelmakers are making progress to develop steel with hydrogen, without the environmentally harmful coke and coal process. He urged the government to speed up the transition to this process "in the next 15-years" adding how the market for the coal from the planned Cumbria mine "will close a long time before the champions of the mine say it will". Mr Ashton claimed the mine was an "unattractive bet" for local people before slamming the plans for their "here today, gone tomorrow" approach. The plans for the mine attracted opposition at the start of the year and were used as an example of a lack of joined-up thinking from the government who have been making big promises on the environment. DON'T MISS



https://www.express.co.uk/news/uk/1487427/Cumbria-coal-mine-inquiry-UK-energy-steel-production-Mark-Starkie-climate-change-news-vn&ct=ga&cd=CAIyGmI1MWRkN2RlMGJjN2Y2NDM6Y29tOmVuOkdC&usg=AFQjCNEE5uhDPiJf99Otik-BTGlTM4s_E

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The China Puzzle.


Long term simple truths: 


This is iron ore, but it's true of every single commodity I look at. China has 18% of the world's population and only 6.3% of the worlds land area.  That makes for high cost/short reserve life mines.



China has doubled its copper mine output in the last 15 years.  The known reserves will last 10 years. (cf Chile: 40 years)



As China becomes more 'middle class', meat consumption rises, and its Ag imports surge as a direct result. (x2 over 5 yrs) Everytime we have a flood, and China has 2 rivers, notorious for flooding:

Floods in the lower Yellow River became much more frequent during the Northern Song Dynasty. In <200 years, the river broke its levees 74 times and shifted its course 8 times. The Eastern Han River that had flowed for almost a millennium eventually filled up in 1048. The lower river entered a chaotic stage when its mainstream mostly shifted between northern courses and an eastern course (Fig. 2). The flood disasters in the Northern Song were real tragedies. The breach in 1048 caused 1 million people to be killed or to be homeless (Zhang 2009).

the Ag sector lights up and goes to cyclical highs. It did it this year, and last. 



China long ago became the worlds largest Oil importer. Hence the policy to encourage EVs at any cost. (Lithium ore doubles in price this year.)



This year, Xi changed policy, and we can see it real time:



This map is normally bright red or purple.


China is gradually banning domestic coal use for heating and replacing the coal with LNG. LNG prices have risen 9x fold in the past 18months. There's no spare LNG for Europe now. Many cities are reporting electricity shortages, as a result they are switching off Aluminium capacity:

So Aluminium is surging. It makes no sense for China, which is energy short, to be producing 60% of the worlds Aluminium supply. 

China aluminium output falls in July for third month on power squeeze

By Tom Daly, Emily Chow

3 MIN READ

* July primary aluminium output 3.26 mln T vs 3.29 mln T in June

* Daily output falls as regions restrict smelters’ power use

* Total nonferrous output at 5.37 mln T, down 2.2% from June (Updates with details, background, consultancy comment)

Aug 16 (Reuters) - China’s aluminium output in July slipped for a third month, with daily average levels at the lowest since October 2020, official data showed on Monday, as continued power shortages in the south of the country kept smelter operating rates low.



If China did have a true electricity market this is what you would see:




There are consequences when Electricity prices triple in 18 countries. 


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Wall Street sounds alarm, but no mention of Electricity.

Wall Street strategists are growing more concerned that a slowing U.S. economy could derail the stock market’s record run.


The benchmark S&P 500 has climbed 20% this year, booking 54 record-high closes along the way, according to Dow Jones Market Data. The index has not seen a 10% pullback in 369 trading days, the longest stretch since the 501 trading days from February 2016 to February 2018.


Ticker Security Last Change Change % SP500 S&P 500 4497.3 -16.77 -0.37%


"The next two months carry an outsized risk to growth, policy and the legislative agenda," wrote Morgan Stanley strategist Adam Sheets.


He worries that a resilient global economy, passage of President Biden’s $3.5 trillion spending package and a near-term peak in COVID-19 cases would cause U.S. Treasury yields to rise and in turn put pressure on growth stocks.


FED'S BULLARD SAYS STIMULUS TAPERING SHOULD BEGIN THIS YEAR: REPORT


Should the economy slow, risk premiums "look too low versus prior growth scares," he said. Morgan Stanley economists earlier this month slashed their tracking estimate for U.S. gross domestic product in the third quarter to 2.9% from 6.5%.


Sheets lowered his outlook for U.S. stocks to "underweight," noting his preference for European and Japanese equities.


A team of Bank of America strategists led by Savita Subramanian says its internal indicator shows stock market sentiment is "all but euphoric" and closer to a sell signal than any point since 2007.


Worries include wage and input cost inflation squeezing margins, record-high interest rate risk and valuations that "leave no margin for error."


While the strategists are optimistic about the prospects for the U.S. economy, they worry action by the Federal Reserve will ultimately be the stock market’s undoing. The Fed’s balance sheet expansion is responsible for more than 50% of equity returns since 2010, they said.


YELLEN WARNS TREASURY COULD EXHAUST EXTRAORDINARY DEBT LIMIT MEASURES IN OCTOBER


The BofA strategists on Wednesday raised their year-end S&P 500 target from 3,800 to 4,250, or 5.85% below current levels.


Still, others believe the S&P 500 can keep setting new highs.


UBS strategist Keith Parker says a 10% rise in forward earnings over the next six months, a decline in COVID-19 cases, a still-strong economy, fiscal spending outpacing taxes and the ability to absorb a 50-basis-point rise in bond yields will help propel the S&P 500 higher through the end of next year.


He raised his year-end target to 4,650 but conceded that a selloff is likely in the coming weeks as investors grapple with higher yields, taxes, slowing data and other headwinds.


Looking ahead, Parker sees further gains into next year.


"We forecast S&P 500 EPS to rise to $60 in Q2 ’22, inclusive of a tax hit, which would support 5000+ for the S&P on a 21x trailing P/E," he wrote. "Slower economic growth in H2 ’22 though and a flattening out of quarterly earnings at ~$60 accordingly should mean that gains are front-loaded net year."


https://www.foxbusiness.com/markets/wall-street-sounds-alarm-stock-market-pullback&ct=ga&cd=CAIyGjNhNDcwMGYyZTUwNGQ4MmM6Y29tOmVuOkdC&usg=AFQjCNF3TDJdM1Fn5z2rOBIyeAzTWmOuf

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Macro

Inflation steady at 4% in August

Inflation steady at 4% in August


A vendor pictured at his stall in Kamuning Market in Quezon City on Aug. 29, 2018.


MANILA, Philippines — The rate of increase in consumer prices was likely unchanged in August as oil and food prices managed to ease further last month, an international think tank said.


In its weekly brief, London-based Capital Economics said it expects inflation in August to remain at four percent, the same rate in July when it slid back to within the government target band for the first time this year.


However, the Bangko Sentral ng Pilipinas said inflation last month could settle within the 4.1 to 4.9 percent range. Market consensus is at 4.3 percent.


“In August, petrol and rice price inflation is likely to have fallen further due to improving base effects. Meat prices should have also eased a bit as imports reduced supply shortages,” economist Alex Holmes said.


“But, these factors are likely to have been offset by a jump in the price of liquid petroleum gas, as well as a price hike by the country’s largest electricity company, Meralco (Manila Electric Co.),” he said.


As inflation holds steady and is still within the BSP’s target, Holmes said this should persuade the central bank to loosen policy during its regular meeting later this month.


The think tank has been insisting that BSP will cut rates by a further 50 basis points in the second half of the year, with the first one in a few weeks time.


It has been 10 months since BSP adjusted rates following the surprise 25 bps rate cut in November.


“We don’t think high inflation alters the policy outlook for the BSP. For one thing, the headline rate should resume its fall later in the year as the low base in global oil prices slips further out of the annual comparison,” Holmes said.


He added that there is a more pressing need to provide support to the economy as virus cases continue to surge.


“BSP Governor (Benjamin) Diokno noted that the bank has ample leeway to support the economic recovery, with conventional policy instruments far from being fully utilized,” Holmes said.


Market consensus expects the central bank to keep rates unchanged for the rest of the year.


https://www.philstar.com/business/2021/09/06/2125086/inflation-steady-4-august&ct=ga&cd=CAIyGjRhZDQzYTdhNWJjMTRjYWU6Y29tOmVuOkdC&usg=AFQjCNEHCEmpmzIq1bdByqGM_DRZIJDKv

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European stocks push back toward record highs; aluminum producers surge after coup

European stocks jumped out of the gates on Monday, tracking gains out of Asia as investors took the view that weaker-than-expected U.S. jobs data last week will keep the Federal Reserve’s tapering plans at bay for longer.


The Stoxx Europe 600 index SXXP, +0.69% rose 0.5% to 474.27, after closing modestly lower last week. Monday’s gains have put the index 0.3% away from its record close of 475.83 reached Aug. 13, 2021. The German DAX DAX, +0.96% rose 0.6%, and the French CAC 40 PX1, +0.80% and FTSE 100 UKX, +0.68% were up 0.5% each.


U.S. stock markets will be closed on Monday in observance of the Labor Day holiday. Stocks finished mixed on Friday after data showed that the U.S. economy added 235,000 jobs in August, far fewer than the forecast for an increase of 720,000, though the previous two months data showed upward revisions.


The data cast a shadow over the continuing recovery in the U.S. and raised questions about whether the Federal Reserve could delay its long-anticipated plan to start tapering asset purchases.


Asian stocks climbed as investors in those markets got their first chance to react to the data and European equities followed suit. Data from Germany on Monday, meanwhile, showed manufacturing orders reaching a historic high in July, against expectations for a fall.



Norsk Hydro NHY, +3.38% was another big gainer for Monday, with shares of the Norwegian aluminum and renewable energy company up 5% after an apparent coup in the mineral rich West African nation of Guinea. Shares of aluminum giant United Company Rusal International 486, +14.45% surged 14% in Hong Kong trading.


Militants say they removed President Alpha Conde by force on Sunday. Conde sought a controversial third term in office last year, and has been critizied for not improving the lives of Guineans, many of whom live in poverty even amid the country’s vast mineral riches, which include the biggest bauxite reserves in the world.


Bauxite is used to produce alumina, then aluminum, prices of which soared to 15-year highs in Asia and climbed in London on Monday, noted analysts. Aluminium is among industrial metals with the most bullish fundamentals currently, which has boosted prices by 40% this year.


“Driven by the prospects for strong demand increasing the visible deficit in China and the West, the news from Guinea may further increase the deficit through rising supple threats. China, the biggest producer of aluminum source more than half of its Bauxite, a feedstock used to make alumina, which is further processed into aluminum from Guinea,” said the Saxo Bank strategy team, in a note to clients on Monday.


https://www.marketwatch.com/story/european-stocks-push-back-toward-record-highs-aluminum-producers-surge-after-coup-11630925878?siteid=yhoof2&yptr=yahoo

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Climate change could DOUBLE the frequency of extreme regional summer droughts in Europe

Climate change could result in the number of 'extreme summer droughts' in Europe doubling by 2099, a report has warned.


The climate crisis has already had a number of drastic global impacts, including an increase in the number of droughts, 'causing considerable social, economic, and environmental costs', according to the researchers from the Ludwig-Maximilians-Universität München (LMU) in Germany.


The World Health Organization (WHO) says droughts are the most serious hazard to crops and livestock in every part of the world, affecting 55 million people every year.


To determine future risk, researchers used archive data on rainfall levels throughout Europe, the British Isles and Scandanavia with future climate prediction models.


Their analysis suggests that all areas will see some increase in the number of summer droughts, but in France, the Alps, the Mediterranean and the Iberian Peninsula the number could double.


Climate change could result in the number of 'extreme summer droughts' in Europe doubling by 2099, a report has warned, with France among the most affected


Chart to show different levels of predicted rainfall (PNI) up to 2099 in each of the eight regions analysed by the researchers, with darker browns showing increased drought risk


What is a meteorological drought? Drought is a complex climate phenomenon covering a wide range of definitions and conditions. Their impacts are economically, socially, and environmentally complex, and a universal definition that covers all consequences does not exist. Droughts are instead classified by their impact: meteorological, hydrological, agricultural, or socio-economic. Meteorological droughts are a predecessor of other drought types. They have no clear start and end, unlike hurricanes, for example, which can easily be seen as they develop. Drought is the absence of water, a creeping phenomenon that slowly sneaks up and impacts many sectors of the economy, and operates on many different time scales. Meteorological drought happens when dry weather patterns dominate an area and can begin and end rapidly. In contrast, hydrological drought takes much longer to develop and recover.


In their study, the researchers analysed the 'percent of normal index' (PINI), designed to give a percentage of rain in any given period.


They then compared that figure to the prediction of rainfall in a single climate model for eight regions of Europe over the next 80 years.


Each region they studied had a different climate, covering the British Isles, Scandinavia, mid-Europe, the Alps, Eastern Europe, France, the Mediterranean and the Iberian Peninsula.


In the long-term future, from 2080 to 2099, Europe will see an increase in frequency and intensity of summer droughts, but a drop in winter droughts, according to the research.


There will be greater differences between winter and summer rainfall levels as well, increasing during winter and decreasing over the summer months.


For mid-Europe there's a sharp rise in the likelihood of an extreme drought - up by about a quarter of current levels.


In Eastern Europe and the Alps, severe and extreme droughts have higher probabilities in the future, going from a 20 to 40 per cent increase.


France has one of the higher levels, with a 60 per cent increase in frequency of extreme droughts, while in the Mediterranean, the chance of extreme droughts in the future is around 80 per cent for the summer months.


Meanwhile, in the Iberian Peninsula, the chance of extreme droughts is the highest of all regions, reaching 96 per cent in July and 88 per cent in August.


In these two regions, however, the absolute rainfall values in July and August are already low, meaning that comparatively small absolute changes can lead to high percentages of the PNI, which is a relative measure.


In each region there will be an increase in the number of droughts, but the Iberian Peninsula and Alps will see some of the greatest increase in number, with the Iberian Peninsula seeing the greatest increase in length of each drought


Levels of rainfall around the European regions covered by the study show a decline in summer average levels since before the industrial revolution


Weather disasters have increased FIVE-fold over the last 50 years Weather-related disasters such as Hurricane Ida are striking four to five times more often than they did 50 years ago, a sobering UN report warned today. Destructive events including storms, flooding and drought are causing seven times more damage than in the 1970s, but they're killing far fewer people, according to the UN's World Meteorological Organisation (WMO). In the 1970s and 1980s, these events killed an average of about 170 people a day worldwide, but in the 2010s that dropped to about 40 per day. The WMO's report looks at more than 11,000 weather disasters between 1970 and 2019, based on data from the Centre for Research on the Epidemiology of Disasters. A disaster related to a weather, climate or water hazard occurred every day on average over the past 50 years – killing 115 people and causing $202 million (£146 million) in losses daily, it found. In total, just over 2 million deaths and $3.64 trillion (£2.64 trillion) in losses were attributed to such catastrophes. The report follows Hurricane Ida and drought-worsened wildfires in the US, as well as catastrophic floods in mainland Europe this summer.


Researching the future occurrence of droughts is crucial for adequate climate crisis mitigation, according to the study, published in Frontiers in Water.


'Summer droughts are a highly relevant topic in Europe,' said author Magdalena Mittermeier, who shares the first authorship with Andrea Böhnisch.


'We find a clear trend towards more, longer and more intense summer droughts, in terms of a precipitation deficit, towards the end of the century under a high-emission carbon scenario (RCP8.5).'


This is the emission scenario currently most likely under global average emission levels, although governments hope to change this with new climate measures.


The impacts of droughts are economically, socially, and environmentally complex, and a universal definition that covers all consequences does not exist.


Instead, droughts are classified by their impact as meteorological, hydrological, agricultural, or socio-economic.


Meteorological droughts are a potential predecessor of other drought types and are therefore important to research, and are the type covered by this study.


Regional differences between drought events are high, and there is an urgent need to identify geographical hot spots for future drought events, the team added.


'Our study shows that unabated climate change will worsen the risk of hot-spot droughts drastically,' said Mittermeier.


'But also, in some regions where droughts currently play a minor role, the future drought risk is expected to get serious. We show that the Alps should be considered an additional future hot-spot.'


She said these extreme future events can be avoided by climate mitigation, including those agreed to under the UN Paris Agreement.


The climate crisis has already had a number of drastic global impacts, including an increase in the number of droughts, 'causing considerable social, economic, and environmental costs', according to the researchers


'These three key features of: first, increasing drought occurrence in summer; second, wetter conditions in winter as well as; and third, interannual variations due to the natural variability of the climate system are visualised in what we call "drying stripes".


'These allow an overview of our results at first glance. The drying stripes show the percentage of precipitation for every month and year summarised over our ensemble compared to the long-term mean in a counterfactual world with pre-industrial greenhouse gas concentrations.


'With this, they show the projected summer drying trend throughout the 21st century compared to a world without climate change.'


The findings have been published in the journal Frontiers in water.


https://www.dailymail.co.uk/sciencetech/article-9965533/Climate-change-DOUBLE-frequency-extreme-regional-summer-droughts-Europe.html&ct=ga&cd=CAIyGjEzNGMxNzRmYjliOTAzZGY6Y29tOmVuOkdC&usg=AFQjCNEEHjHK_1CmJj6JhYtM8ztq5rn24

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Resources sector tops IPOs and ASX listings

The majority of recent new listings are from the resources sector that also houses a number of upcoming new listings.


In the first half of 2021, 85 companies listed on the ASX, raising $3.5 billion in IPOs and listing with a combined market capitalisation of $22.8 billion.


Nearly half of these listings come from the resources sector, with the mining and exploration companies collectively raising more than $650 million.


That trend is set to continue over the next fortnight.


This article introduces five mining and exploration companies due to list on ASX in the coming two weeks.


Midas Minerals Ltd


Listing date: September 7, 2021


Issue price: $0.20


Capital to be raised: $6 million


Midas Minerals Ltd is focused on the acquisition, exploration and development of mineral resource projects targeting gold, platinum group elements (PGE), nickel, copper and other base metals from a portfolio of highly prospective mineral exploration projects in the Eastern Goldfields and Murchison regions of Western Australia.


The company proposes to use the funds raised from the IPO towards exploration activities on its tenements.


Inc


Listing date: September 7, 2021


Issue price: $0.20


Capital to be raised: $12.5 million


Besra Gold Inc is a gold mining company focused on the exploration and development of the Bau Goldfield situated in Sarawak in East Malaysia.


The funds from the IPO will be used to significantly advance drilling and development plans at the Bau gold project.


Culpeo Minerals Ltd


Listing date: September 8, 2021


Issue price: $0.20


Capital to be raised: $6 million


Culpeo Minerals has assembled a strong portfolio of high-grade assets in the Coastal Cordillera of Chile targeting proven district scale, under-explored mineralised systems.


Funds from the IPO will be used to further explore and develop these assets as well as seek out further complementary exploration, acquisition and development opportunities.


Legacy Minerals Holdings Ltd


Listing date: September 13, 2021


Issue price: $0.20


Capital to be raised: $7 million


Legacy Minerals Holdings Limited is focused on the acquisition, exploration, development of exploration tenements with high copper and gold prospectivity in the Lachlan Orogen in New South Wales.


The funds from the IPO will be initially used for drill campaigns across Legacy’s more advanced exploration projects targeting high-grade gold and silver.


Listing date: September 14, 2021


Offer price: $0.20


Capital to be raised: $5.5 million


Heavy Minerals Ltd is focused on exploration, development and acquisition of mineral resource projects in Western Australia and Mozambique targeting industrial minerals.


The proceeds from the IPO will be utilised to continue to systematically explore and develop its Inhambane Mineral Sands Project in Mozambique.


https://www.proactiveinvestors.co.uk/companies/news/959558/resources-sector-tops-ipos-and-asx-listings-959558.html&ct=ga&cd=CAIyGjMwYTQ0YmZlYjQzNWU3MjU6Y29tOmVuOkdC&usg=AFQjCNGgWXrMlup0JV9cPtG4SWEEPMMyW

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Cash is trash, part xxviii etc.

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Changing power dynamics of the region

For the last twenty years, the US has been the dominant world power. Its military muscle, economic largesse, and strategic clout held the fragile Afghan government and promoted in it a false sense of confidence. Perhaps, it was wishful thinking on part of US decision-makers that Western democracy could be imposed from above. Around this façade, a whole edifice was created in Afghanistan that had to disintegrate once the US pulled out. The withdrawal of US forces and the subsequent events that unfolded were not surprising except for the speed with which the Taliban established their writ practically on most of the country less Panjshir where Ahmad Shah Masood seemed to be well-entrenched and putting up a tough fight. Of course, sooner or later his resistance had to be overcome but ill will would persist.


It is not surprising that President Biden is being criticised by his opponents. However, the criticism is not on his decision to withdraw but for the gross mismanagement in its execution the ill effects of which will continue to reverberate for years. The defeat of the US in Afghanistan has serious consequences for it will certainly affect its ability to shape and influence global and regional events. Even countries of the European Union would perhaps rely less on the US for their defence.


Clearly, the focus of the US has now shifted to thwart China’s rising economic power and global influence. There is a general perception among the present US leadership that making China a major trading partner has benefited it to the extent that it is now challenging the US itself. Already President Biden has taken several punitive financial, legislative and administrative measures against Chinese firms and institutions based on their perceived wrongdoings that are badly hurting the US economy. China was anticipating this reaction and apart from taking countermeasures, it is likely to step up the Belt and Road Initiative to increase economic and political influence in Asia, Africa and Latin America. Besides, the vacuum created by the US in Afghanistan allows China and the neighbouring countries to fill the void. Beijing will surely be the lead country in assisting Afghanistan economically. It has considerable interest in exploiting the mining sector of Afghanistan that is known for being rich in mineral resources especially the 1.4 metric tons of rare earth elements (REEs). According to US agencies that have mapped Afghanistan “using broad-scale hyper-spectral data peering deep paint a picture of its vast hidden wealth”. Afghanistan also holds copper, cobalt, zinc, niobium, and several other minerals if properly exploited could be a major source of wealth. Dividends of peace can be enormous in several fields of activity if only the Afghan leaders of opposing factions realise and work towards it.


Afghanistan’s neighbours must take a long-term perspective in formulating policies and dealing with Afghanistan. The peace and stability of Afghanistan are key to the region’s prosperity as Pakistani leaders and intelligentsia have repeatedly emphasised. In good faith, frequently, sane voices in Afghanistan and in neighbouring countries insist that Afghanistan be left to itself so that it could steer its destiny without interference. But how can neighbours not react if the spillover effect of disturbed conditions is as severe as was in the past, or it is anticipated that peace and stability will remain precarious?


The departure of the US from Afghanistan and its lack of interest in the region have facilitated China filling the vacuum as a major player. India has faced a serious setback for having fully backed the Ghani government that collapsed unceremoniously and apart from once never showed any seriousness in developing relations or even contact with Taliban leadership. It is not surprising that it finds itself pushed in the background, at least as of now.


The primary US interest is that no threat should emanate from Afghanistan as occurred on 9/11. It maintains that it could ensure that by close surveillance and monitoring through satellites and other means. For the neighbouring countries like China, Russia, Iran, Central Asian Republics and Pakistan, peace and stability of Afghanistan is vital. The recent civil war in Afghanistan had a serious spillover effect on neighbouring countries creating multiple problems. The most damaging was that it provided dissident forces sanctuaries to operate freely like the TTP and others in Afghanistan. It is expected that the Taliban leadership would be sensitive to the concerns of Pakistan and its neighbours.


The growing influence of China in the region would allow it greater access to the mineral wealth and other resources of Afghanistan and significantly facilitate CPEC and BRI programmes. There is a downside to these developments as well. Beijing is wary of the negative impact that Taliban victory could energise the discontent among Muslim minorities in Xinxiang. The approach taken by the Chinese government to appease the Uyghurs has been primarily through economic development. Their aspirations demand greater political freedom and genuine autonomy, which Chinese authorities feel could lead to separation. Greater political freedom and economic autonomy should work provided Beijing allows it.


The competition between the US and China has primarily centred around the economy, whereas the political and cultural aspects have been given less attention. Western democracies allow for greater freedom of speech and greater individual liberty. China with all its achievements aside is a semi-authoritarian state. This model works well if the economy is delivering, and people are content. If there is an economic downturn and financial crunch, then how the Chinese model would fare has yet to be tested. A more central question is: will weak democracies be tempted to move toward authoritarianism on the pretext of achieving faster economic progress?


The polarised global scenario demands deft handling of relations with competing global powers. Pakistan has faced similar situations in the past and should be able to maintain close strategic ties with China while also retaining good relations with the US. As recent events in Afghanistan and the region have demonstrated, the US and Pakistan can cooperate closely where interests converge.


https://tribune.com.pk/story/2319050/changing-power-dynamics-of-the-region&ct=ga&cd=CAIyGjE0ZWYzM2IyYjQyY2VlNzA6Y29tOmVuOkdC&usg=AFQjCNFFcKBRQ86f8y-MHROMi0g0qOeox

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Lets just ignore the electricity grid shall we?

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Back To Work, Or the Lack of it?

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Oil

Saudis Cut Oil Prices to Woo Buyers as OPEC+ Boosts Supply

(Bloomberg) -- Saudi Arabia cut oil prices for sales to Asia next month by more than twice the expected amount in a sign the world’s largest crude exporter wants to entice buyers to take more of its barrels.


State producer Saudi Aramco is rolling back pricing on all of its grades to its biggest market in Asia. Three successive months of increases in the company’s official selling prices had left refiners smarting as the coronavirus pandemic plays havoc with the recovery in energy demand.


But with Brent crude up 40% this year, OPEC+ sees enough demand -- and a potential shortage by the end of the year -- to allow it to raise production. That increase means more barrels competing for cautious buyers. Saudi Arabia, which sells all of its oil on long-term contracts to refiners, risks alienating customers if its sets monthly prices too high.


“Because of the high Saudi OSPs in previous months, traders have diverted to the spot market instead of using long term contracts,” said Giovanni Staunovo, a commodities analyst at UBS Group AG. Now Aramco wants buyers to take more Saudi crude, he said. “With domestic demand likely leveling off in autumn, they have more barrels to be exported, so that’s another reason to offer more attractive OSPs.”


Aramco is lowering pricing for Arab Light crude, its main oil grade, by $1.30 a barrel to a premium of $1.70 more than the regional benchmark, according to a statement. Aramco had been expected to reduce the oil selling price of the grade by around 60 cents a barrel, according to a survey of six traders and refiners in Asia last week.


Refiners in Asia, who are Aramco’s biggest customers were surprised by the scale of the cuts. The reductions signal the Saudis are trying to compete on price with other producers and to grab market share from rivals, according to the buyers.


Those refiners have suffered as swings in demand crimp profits from turning crude into fuels like gasoline and diesel. Saudi Arabia sends more than 60% of its crude exports to Asia, with China, South Korea, Japan and India the biggest buyers.


Aramco is keeping pricing to the U.S. and to Northwest Europe unchanged for October. For buyers in the Mediterranean region, Aramco is trimming pricing on all grades by 10 cents a barrel.


Aramco isn’t looking to increase sales in the U.S. as that country draws on strategic reserves, Staunovo said. Refinery capacity on the U.S. Gulf coast is shut in after Hurricane Ida ravaged the area.


OPEC+ this month decided to continue rolling back supply cuts implemented last year to support prices as the coronavirus slashed demand. Led by Saudi Arabia and Russia, the Organization of Petroleum Exporting Countries and partners are moving cautiously to get oil back onto the market amid continued flare-ups of the virus that are slowing economic recovery.


The group agreed in July to raise production by 400,000 barrels a day each month from August to unwind production cuts over the next year. Demand has improved from the depths of last year and the OPEC+ cuts have helped support markets with Brent trading at about $73 a barrel last week.


https://finance.yahoo.com/news/saudis-cut-oil-pricing-october-103422752.html

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Oil boom remakes N. Dakota county with fastest growth in US

Dana Amon, who grew up in a double-wide trailer on a farm on the edge of the county seat, Watford City, remembers riding her horse across fields now dotted with tracts of modest housing lit up at night by flares from nearby oil wells.


"Our little town just blew up at the seams," she said.


FIGHTS AND FRENZY


Since the boom began in 2010, jobs in McKenzie County have come and gone with oil's changing fortunes. Crude prices peaked last decade at more than $130 a barrel, fell below $40, then rebounded before falling again when the COVID-19 pandemic hit.


McKenzie just kept growing.


Watford City - perched on a bluff, its skyline defined by a pair of grain elevators - spilled out onto surrounding farmland. The flat, largely barren landscape of Amon's childhood now features mile after mile of worker camps, shopping centers, subdivisions, hotels, truck yards and warehouses.


When fights became frequent in bars along Main Street and fatal wrecks commonplace on the highways, people like Amon started to lock their doors at night.


Ten years on, the frenzy has settled. The wariness locals and newcomers held for one another eased. Along the way, lives got stitched together through school events, church services and along the sidelines of youth football games.


"I tell the locals, 'If you guys kick me out, I'm not leaving. It's my town,'" said Yolanda Rojas, a Tucson, Arizona, native who followed her husband to McKenzie County with their five children a year after he got a job in the oil fields.


From 2010 to 2014, the amount of crude produced in the county grew 1,800%. By the end of the decade, census figures show, its population more than doubled, to 14,704 residents.


Rojas and her husband, Ruben Vega, saved enough money to open a Mexican restaurant in March 2020 - just as the pandemic arrived. The business was teetering on failure when Rojas reached out to the community on social media. People in Watford City rallied to help, regularly ordering takeout to keep the family afloat.


Many of the customers were Hispanic and unknown to Rojas. Only when the census data came out did she learn that the number of Hispanics increased tenfold over the decade, a stark cultural shift for a community long dominated by farmers of northern European descent.


Hispanics now make up about 10% of the population - a share roughly equal to American Indians in the county, which includes part of the Fort Berthold Reservation. The reservation's three tribes - the Mandan, Hidatsa and Arikara - trace their roots in the area to long before the first European settlers.


'A BIG, EXTENDED FAMILY'


Oil was first discovered in McKenzie County in the 1950s, but it was the industry's fracking revolution that opened once inaccessible crude reserves and transformed North Dakota into a global energy player. Tens of billions of barrels of oil have yet to be tapped, according to government estimates, and new wells keep getting drilled.


County officials say the growth is far from over. School enrollment tripled over the past decade and is expected to double again by 2030.


Pump jacks pulling oil from the ground dot the landscape across the county's 2,860 square miles (7,400 square kilometers). Bordered by the Yellowstone River to the north, Lake Sakakawea to the east and Montana to the west, McKenzie is larger in land mass than Delaware.


Howdy Lawlar, who chairs the McKenzie County Commission and whose family has grown wheat and raised cattle northwest of Watford City for five generations, recalled widespread frustration among farmers as thousands of oil trucks clogged roads not designed for such traffic.


Leaving his farm and trying to turn left into Watford City, Lawlar could wait for an hour for a gap in traffic.


Bypasses were built to ease congestion. Pipelines went in to replace tanker trucks. At the height of the boom, almost 4,000 trucks daily crawled through Watford City. Recent counts tallied just over 320 trucks a day.


More police officers were hired to keep order and new schools built to get students out of temporary trailers.


"I feel like we're becoming a big, extended family," Lawlar said. "It's a good thing."


But while most families age, this one has become younger, with a median age of 30 compared to 39 in 2010. It's also more prosperous, with median household income increasing 61% to almost $78,000, according to census data.


The money lured J.T. Smith, a 31-year-old native of the Fort Worth, Texas, area who took an oil field job in McKenzie County six years ago. His parents had moved to North Dakota for oil work several years before. At first he found the region bleak and uninviting.


Smith went back to Texas, where his wife and two children had remained, swearing he'd never come back.


STAYING FOR COMMUNITY


A few years later, another job offer in North Dakota came his way, so he decided to try again. This time he brought his family, and the rhythms of their lives have grown comfortable.


J.T. Smith leaves before dark for his job as an oil field safety adviser, climbing into a white company pickup and joining throngs of near-identical pickups that fan out every morning to drilling rigs, gas processing plants and pipeline construction projects across western North Dakota.


An hour later, the Smiths' 10-year-old son climbs onto a school bus that falls in with dozens of others funneling students to a gleaming new elementary and high school complex at the edge of town.


Smith and his wife, Virginia, have become deeply involved with the Assembly of God church, which doubled in size in recent years to about 400 members. Their children have made friends through a mixed martial arts gym.


Now when the Smiths go to the grocery store, they're bound to run into a half-dozen friends. It's one of many glimpses of lingering small-town charm.


"You're here for a month and everybody knows you," Virginia Smith said.


Despite the drastic changes over the last decade, the open landscape around Watford City retains a feeling of remoteness.


As Lawlar, the county commission chairman, worked recently to replace a barbed-wire fence bordering wheat fields that stretched to the horizon, the only sign of industry was the occasional truck rumbling on a distant road.


Grasshoppers sprung up ahead of Lawlar as he silently walked the fence line. His farmhand, Charlie Lewis, lumbered along in a Bobcat they used to push steel fenceposts into the dry dirt.


Lewis came for oil field work, then took a job with Lawlar during a downturn in crude prices. He plans to make this place his home and start a family.


"People come for the work and stay for the community," Lewis said. "The only time I think of going back is when it's 40 below."


___


Follow Matthew Brown on Twitter: @MatthewBrownAP


https://wnyt.com/money/oil-boom-remakes-n-dakota-county-with-fastest-growth-in-us/6228484/%3Fcat%3D659&ct=ga&cd=CAIyGjkyMzE5ZjljOWZhZmIwYWU6Y29tOmVuOkdC&usg=AFQjCNEFmChnHNuEh6eP6GnLcyTZBJwG2

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The Commodities Feed: Saudis cut crude prices

Energy


The oil market has come under downward pressure this morning following Saudi Aramco cutting its official selling prices (OSP) for all grades of its crude oil into Asia for October shipment. Aramco’s flagship Arab Light into Asia was cut by US$1.30/bbl to US$1.70/bbl above the benchmark. While a decrease was expected by the market, the cut was larger than anticipated. A combination of increased Saudi output and soft demand in Asia appears to have contributed to the decrease. However, OSPs into the US and NW Europe were left unchanged MoM, while all grades into the Med saw cuts for October.


The US oil industry is still struggling to recover from Hurricane Ida. It is now around a week since the storm made landfall in the US Gulf, and yet there is still a significant amount of offshore crude oil production offline. The latest data from the Bureau of Safety and Environmental Enforcement shows that 1.61MMbbls/d of US Gulf of Mexico (GoM) production remains shut in, which is equivalent to 88.32% of US GoM output. Some offshore installations appear to have suffered some damage from the storm, which is delaying the restart. Last week Shell said that there had been damage to its West Delta-143 offshore facilities, and that around 80% of its offshore GoM output remains offline. While the Louisiana Offshore Oil Port (LOOP) as of Saturday had still not returned to operation. LOOP receives crude oil from the US GoM, while it also has a marine terminal for imports and exports. The impact of the storm on oil output and flows is clearly more significant than the market was expecting. The latest rig data from Baker Hughes also shows that Hurricane Ida had an impact on drilling activity, with the rig count last week falling by 16 to 394, which is the largest weekly decline since June last year.


The latest positioning data shows that speculators increased their net long in ICE Brent by 27,930 lots over the last reporting week, leaving them with a net long of 273,894 lots. The increase shouldn’t be too much of surprise, given the recovery that we have seen in oil prices in recent weeks. The increase was driven by a combination of both fresh longs and short covering.


European natural gas prices continue to trade near record levels. It is looking increasingly likely that we will start the heating season with inventory levels well below the 5-year average. European gas storage is about 68.45% full, compared to the 2016-2020 average of a little over 84% at this stage of the year. If we were to see gas inventories enter the heating season at the 5-year average we would need to see a daily injection rate of more than 8TWh, which is very unlikely, as these are rates we have not seen in recent years, and is also well above the average daily injection rate of 2.7TWh seen over the summer. To start the heating season at 2018 levels (which was a five year low), we would need to see daily net injections of over 5TWh. Even this looks as though it will be a stretch. The forward curve is providing very little incentive to store gas for the winter, with it basically flat between now and February 2022. It is difficult to see a situation where European gas prices do not remain well supported going into winter.


https://think.ing.com/snaps/the-commodities-feed-saudis-cut-crude-prices/&ct=ga&cd=CAIyGmNkODMzMDNjMGU4NGQ4ZWU6Y29tOmVuOkdC&usg=AFQjCNEVZPEIuJq4JhfhfGZP4LgNRXSHK

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Asia Fuel Oil: 180-cst HSFO cash premium jumps

SINGAPORE: Tight supply and strong demand pushed Asian cash premiums for cargoes of 180-cst high-sulphur fuel oil (HSFO) to their highest since January 2020 on Tuesday.


The cash premium jumped to $22.44 a tonne to Singapore quotes, up from $14.13 a tonne in the previous session and above the recent high of $20.48 a tonne on Aug. 27.


The higher premium came amid sharply higher bids for 180-cst HSFO cargoes in the Singapore window and no supplier offers.


Vitol raised its bids for 180-cst HSFO cargoes in the Singapore trading window to premiums of about $22 a tonne across the window, but there were no suppliers offers. Utilities across Asia and the Middle East have ramped up imports of HSFO amid soaring gas prices and rising power demand, extending the peak seasonal demand outlook beyond the summer and into at least the fourth quarter of the year.


In addition to the surge in utility consumption, the bullish sentiment has also been fuelled by competing refinery demand for residual fuel feedstocks as well as limited HSFO output, trade sources said.


Freepoint and Gunvor each bought one 20,000-tonne 0.5% very low-sulphur fuel oil (VLSFO) cargo from Lukoil. Vitol bought a 20,000-tonne 380-cst high-sulphur fuel oil (HSFO) cargo from Total.


Pakistan’s PSO bought a 50,000-tonne low-sulphur fuel oil cargo from BB Energy of delivery in the first half of October.


PSO was also due to finalise the results of an import tender for two HSFO cargoes, for which Max Energy and Vitol submitted the lowest offers, over the same period, but the company deferred the tender validity to Sept. 8, trade sources said. Elsewhere, India’s Reliance sold a carbon black feedstock cargo to Vitol while Nayara Energy sold a fuel oil cargo with maximum 0.1% sulphur content to BP, each of which are for late-September loading.


https://www.brecorder.com/news/40118686&ct=ga&cd=CAIyGmRhNjY4MTRiZTczNzY0ZjA6Y29tOmVuOkdC&usg=AFQjCNHahd3RA3cXg2mbGsLbAFMROMgzY

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China Intervenes in Oil Market With Historic Sale of Reserves

(Bloomberg) -- China made an unprecedented intervention in the global oil market, releasing crude from its strategic reserve for the first time with the explicit aim of lowering prices.


The announcement comes amid surging energy costs in China, not just for oil but also for coal and natural gas, and electricity shortages in some provinces that have forced some factories to cut production. Inflation is rapidly rising too, a political headache for Beijing.


In a late statement on Thursday, the National Food and Strategic Reserves Administration said the country had tapped its giant oil reserves to “to ease the pressure of rising raw material prices.” It didn’t offer further details, but people familiar with the matter said the statement referred to millions of barrels the government offered in mid-July.


The Chinese stockpiling agency also said a “normalized” rotation of crude oil in the state reserves is “an important way for the reserves to play its role in balancing the market”, indicating that it may continue to release barrels. The agency said that putting national reserve crude oil on the market through open auctions “will better stabilize domestic market supply and demand”.


No one answered calls to the press offices of China’s State Council and the National Development and Reform Commission seeking comments outside the regular business hours.


China, the world’s largest oil importer, has built up a 220 million barrel reserve of the commodity over the past decade, according to Energy Aspects Ltd. The buffer differs from strategic petroleum reserves, known as SPR, held in the U.S. and Europe, which are only tapped during supply outages and wars. China however is signaling it’s willing to use its reserve to try to influence the market.


“On its face, it’s a pretty clear statement of an intent to use the SPR to dampen oil prices for domestic refiners,” said Bob McNally, a former senior White House policy adviser who now runs Rapidan Energy Group, a consulting firm in Washington.


The statement comes after China’s factory-gate inflation accelerated to a 13-year high, and just a month after the White House publicly asked the OPEC oil cartel to pump more crude amid rising gasoline prices in America. Together, the actions in Beijing and Washington suggest that the world’s two largest energy consumers see $70-$75 a barrel as a red line for the price of oil. Hurricane Ida has also eliminated a swath of U.S. crude production, affecting supplies to China’s Unipec.


Brent crude futures were little changed on Thursday afternoon in London, having retreated as much as 1.9% earlier in the day.


Other Commodities


China has been selling other commodities from its strategic reserves, including copper, aluminum and grains. In the past, Beijing rarely confirmed the releases, which have tended to filter into the market via trader talk. The public release is being seen by many as an attempt to maximize the impact of the move.


Thursday’s statement started by saying the release was carried out “with the approval of the State Council,” language that Chinese researchers took as an indication that it was directed by China’s most senior political leaders.


Without details of what future auctions from the oil reserve may be, traders and consultants were left guessing what Beijing’s next move will be. Amrita Sen, co-founder of consultant Energy Aspects, said that China had released between 20 and 30 million barrels over the summer, and any potential extra sale this year was unlikely to surpass the 10-to-15 million barrels range.


Beijing has had a mixed success using its strategic reserves to cap surging commodity prices. Although often the release, particularly when publicly confirmed, sends prices down sharply, the retreat tends to be short-lived.


“The move by China is no doubt designed to ease upward price pressures on rising oil import costs,” said Ryan Fitzmaurice, commodities strategist at Rabobank. “It is unlikely to have the desired effect, as we see it. For starters, it signals vulnerability to the financial oil market, and even more so it is not enough physical supply to move the dial.”


https://finance.yahoo.com/news/china-releases-oil-reserves-combat-131820334.html

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Oil and Gas

THE GREAT LNG SCRAMBLE

Pakistan looks set to face yet another energy crisis in the coming winter months, the third time in three years that liquefied natural gas imports will be mismanaged. This will impact not only gas supplies to consumers and industry but also the price of electricity, the country’s reserves and public debt and likely fuel further inflation. Why is the government making the same mistakes again and again?


The Pakistan Tehreek-i-Insaf (PTI) government just completed three years in office. And for the third winter in a row, the government is left scrambling at the very last minute to arrange supplies of liquefied natural gas (LNG) for the winter months, when demand spikes and domestic production is unable to keep pace.


This year, LNG prices have shot up at a dizzying pace and are hitting record highs. Some countries secured themselves by placing orders for their winter demand much earlier, but those that missed the boat, or find themselves dealing with more local demand than they had forecasted, are facing almost unprecedented costs and volatility. The price spiral is expected to continue throughout the winter, since Pakistan’s reliance on LNG is growing at a rapid clip as domestic gas fields dwindle.


For a number of months now, the government of Pakistan has been struggling to deal with this price spiral. On a number of occasions, they have invited international bids for LNG supply, then cancelled the tender after seeing the prices and then reissued the tender to invite fresh bids. Sometimes this has worked, but other times it has not. As the winter months approach and demand within the country rises, the problem is set to aggravate.


Expensive LNG means rising price of electricity, as well as a rising subsidy bill, because the government is committed to providing LNG at subsidised rates to export-oriented businesses. The price spiral could also put pressure on the reserves, public debt as well as inflation.


So how did we get here?


Pakistan buys LNG from two separate markets: long-term contracts and short-term spot markets. The cargoes coming under three long-term operational agreements have a fixed price, pegged to Brent crude. But spot markets are a different game, where bids are invited and the lowest among them is awarded the contract.


A worker in Peshawar repairs a gas heater | Shahbaz Butt/White Star


Spot markets see more price volatility and are typically used to meet demand fluctuations whereas contract cargoes — bought under the long-term agreements — are used to meet what is called “baseline demand”, or requirements that are steady throughout the year.


Just this week, Bloomberg reports that two spot cargoes were invited for delivery in September and Pakistan State Oil (PSO), the entity that invited the bids, received two bids, one pegged at 24.5 percent of Brent crude and the other at 34.6 percent. By comparison, the cargoes under long-term contracts cost between 11 and 13 percent. “This is one of the priciest cargoes that Pakistan has ever procured,” Bloomberg says citing traders.


But this same story has been repeating itself for almost three years now, with Pakistan repeatedly being forced to settle for very expensive bids, drawing fire from the opposition parties and pushing the government on the defensive. The question to be asked is, why is this happening again and again?


THE BLAME GAME


In 2019, the first winter when this happened, PTI blamed the previous government for the resultant mess. They claimed that they were left saddled with expensive LNG contracts. Then in 2020, they blamed the “lack of LNG storage” as the reason for their inability to secure sufficient supplies in time. And this year, the Petroleum Division of the Ministry of Energy tweeted, “no one, without a crystal ball, can perfectly time or beat an international commodity market.”


Global markets are seeing a spike in prices these days as large parts of northeast Asia see colder temperatures and the continuing unwinding of Covid lockdowns ramps up demand elsewhere. But many countries are dealing with this volatility by arranging cargoes earlier than normal. Pakistan’s position is different because, for almost three years now, the government has been placing its orders far too late, thereby earning for itself a front row seat to the full impact of the price volatilities that LNG spot markets typically see every winter.


And as of this writing, the government also seems to be desperately trying to invite bids a second time for an October delivery, because the tender the prices they received for four cargoes in that month attracted bids ranging between 19 dollars and 22.6 dollars — prices that are far above the cut-off point of 15 dollars, at which LNG cost for power generation comes at par with furnace oil.


Every one-dollar difference in the price can drive up the price of an individual cargo by 3.2 million dollars, so each dollar difference adds up considerably, given the growing number of spot cargoes the country is forced to rely on with continuous demand growth. Currently, the government has until September 8 to inform the bidders from the first round whether or not their bids will be accepted.


Gas shortages during the winter months have become the norm | Anis Hamdani/White Star


A ROUTINE AFFAIR


This last minute scrambling amid a tightening global LNG market has now, unfortunately, become a routine affair.


Last year in November, the government advertised for six cargoes to be delivered through December. With just about 30 days between the date when the tender closed and the date of delivery — which is a very tight delivery schedule for winter supplies because the global market is known to be flooded with buyers during these months — they received offers ranging from 15.8 dollars to 17 dollars, just at or slightly above the cut-off point at which LNG ceases to be economically viable compared to its competitor fuel. That bid was followed by stinging commentary in the media about how LNG imports are being mismanaged, mostly by very late tendering, which causes the price to rise sharply.


Then they did it again.


When another tender was closed in December 2020 for six more cargoes to be delivered in the month of January 2021, there was again barely a one-month gap between the closing date and the date when the first delivery was supposed to arrive. The results were even more disastrous.


They only received bids for three of the delivery windows (out of six advertised) and the prices were between 15.3 dollars and 17.3 dollars, making it the most expensive LNG Pakistan would have bought until that point. Both these records have since been blown multiple times — most recently this week, when the bid price works out to 17.85 dollars per unit. The results came to be known in LNG circles as ‘the December debacle’.


It’s important to reiterate that this kind of bidding behaviour is not normal in spot markets. “Usually buyers go to spot markets for the next 2-3 months for delivery,” says Abhishek Rohatgi, LNG analyst for BloombergNEF. “But companies do buy some part of their winter and summer volumes earlier also.”


“We have also seen some buyers coming to pick up what are called ‘strip cargoe’, where a buyer picks up one cargo a month for the next 10 months as an example,” he adds. Earlier this year, some buyers from China and India, for example, placed their winter orders far in advance.


That is how Pakistan also did it in the early days of its LNG tendering as well, until things changed in 2018.


The only time when rapid tendering took place in LNG spot markets was when the Covid-19 lockdowns began, as LNG prices collapsed to record lows. But, as we shall see later, Pakistan remarkably decided to opt out of that buying spree, for reasons that are difficult to understand.


A DISASTER FORETOLD


The results of this delayed tendering and the resultant elevated prices started rolling in by early December 2020, when reports of gas load-shedding began running in the media. But it wasn’t till the months of January and February, when the National Electronic Power Regulatory Authority (Nepra) released the data for fuel utilisation in the power sector, that the real cost of the December and January fiascos came before us.


In one month, from November to December 2020, the cost of the LNG used in power generation went up by one rupee per kilowatt hour (kWh). If you consider the fact that they intended to generate almost 2.2 billion kWh using re-gasified liquefied natural gas (RLNG) in December, you will get some perspective of what a one-rupee hike in the fuel price actually means.


The government managed the month of December by curtailing the total amount of power they intended to generate by about 11 percent, cutting RLNG-based power generation by almost half, and hiking the amount of power generated from coal by about 46 percent. Despite these steps, the fuel price for December rose by 1.5 rupees per unit for all consumer categories except lifeline consumers. That charge showed up in people’s February bills in 2021, applied retroactively.


Every one-dollar difference in the price can drive up the price of an individual cargo by 3.2 million dollars, so each dollar difference adds up considerably, given the growing number of spot cargoes the country is forced to rely on with continuous demand growth.


The main gas utility that serves the provinces of Sindh and Balochistan — the Sui Southern Gas Company (SSGC) — also sent a letter at the end of December to all industrial associations, warning of an impending gas closure for all captive power units of non-export industries. The company said it is “facing acute shortage of gas supplies from different fields and around 150mmcfd gas is being short supplied during this winter as compared to last year.”


The last time such a move had happened was in December 2018, but in that year the utility had blamed the shortage on a “technical fault being experienced in some gas fields.” The gas shortages that hit the country in the winter of 2020 were protracted, however, and lasted well into February, by which time the Prime Minister’s Special Assistant was advising a moratorium on gas supply to captive power plants for industry as a means to deal with the shortages.


The month of January 2021 brought no respite; an additional 0.9 rupees (per unit) was added on the fuel cost for power generation, on top of what was already applied in the month of December. This despite the fact that power generation was again curbed by 400 gigawatt hour (GWh) and LNG generation was slashed from the planned 27 percent of the total mix to 11 percent instead, with coal picking up the slack once again.


Serious gas shortages that hit the country in December 2020 mounted to near crisis levels in January 2021, as industry faced the prospect of shutdowns and had to raise the matter with President Arif Alvi, who was on a visit to the city of Karachi early that month.


“The KCCI chief informed the president that the ongoing gas crisis in Karachi has become a very serious issue that needs to be probed because, at a time when the exports were picking up, some elements somewhere in the system abruptly intervened and created gas shortage which has resulted in closure of many factories,” said a press release issued then by the Karachi Chamber of Commerce and Industry.


Winter gas shortages had become a seasonal matter in Pakistan about a decade ago, when depleting supplies of domestic gas created an ever-widening gulf between supply and demand whenever temperatures dropped. Supply cut-offs to industry in the winter months were a standard feature in those years. But the start of LNG supplies since 2015 had begun to mitigate that. A combination of factors is now turning the clock back to the days when winter temperatures brought severe gas supply disruptions.


The disruptions appeared in the winter of 2018, but were not as severe in that year and were largely buried under the ongoing uncertainty brought on by the recent change of government. They grew in 2019 and are now harkening back to the old days of about a decade ago.


Last year, after the disastrous LNG tender of December 10, 2020 which saw bids for only half the deliveries sought, a debate broke out among gas sector professionals about what might lie behind the repeated failures on the part of the government to secure sufficient LNG cargoes during the winter months.


https://www.dawn.com/news/1644639/the-great-lng-scramble&ct=ga&cd=CAIyGjc5YzQ3ZTU5YzAxYmUzZjU6Y29tOmVuOkdC&usg=AFQjCNGvxG3ztRdSm9b6MoKCSuqSR8XIq

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Saudis intercept Houthi missiles aimed at oil sites

© EPA Houthi rebels have been fighting Yemen's government since 2014 (file picture)


Saudi Arabia says it has intercepted three missiles and three drones fired by Houthi rebels in neighbouring Yemen.


One was destroyed over the eastern city of Dammam, where falling shrapnel injured two children and damaged buildings, the defence ministry said.


The Houthis - who frequently mount such cross-border attacks - said they had targeted Saudi oil facilities.


The other attacks were aimed at oil sites in the southern provinces of Jizan and Najran, the group said.


There are no immediate reports of impact on Saudi oil facilities.


In 2019, the rebels claimed responsibility for a drone attack on two facilities run by Saudi state-owned oil company Aramco. It temporarily reduced crude oil production by 5.7 million barrels a day - about half the kingdom's output at the time.


Saudi Arabia entered the Yemen war in 2015, on the side of the internationally recognised government, shortly after the Houthis seized the capital, Sanaa.


The UN has called the civil war there the world's worst humanitarian crisis. As of March 2020, it had verified the deaths of at least 7,700 civilians, most caused by Saudi-led coalition air strikes.


Monitoring groups believe the true death toll is far higher, however. The US-based Armed Conflict Location and Event Data Project (ACLED) said in October 2019 that it had recorded more than 100,000 fatalities, including 12,000 civilians killed in direct attacks.


https://www.msn.com/en-us/news/world/saudis-intercept-houthi-missiles-aimed-at-oil-sites/ar-AAO7sgZ%3Fli%3DBBnbcA1&ct=ga&cd=CAIyHGMzMDI4NGM4N2E3MjhhZTM6Y28udWs6ZW46R0I&usg=AFQjCNFouqnLjUEzyWQh-8m54Tve_YryF

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Major industrial firms to build 10,500MW of power plants

TEHRAN – Major Iranian industrial firms are going to fund the construction of 10,500 megawatts (MW) capacity of new power plants to meet their own electricity needs, Deputy Industry, Mining, and Trade Minister Saeed Zarandi announced.


Making the remarks in an online seminar on electricity supply challenges in the steel industry on Sunday, Zarandi said the Energy Ministry has so far issued permits for 13 such companies to pursue building power plants, IRNA reported.


Speaking in the mentioned event, the official said: “challenges in electricity supply over the past three months have severely hampered the country's industrial and mining production plants and we are already worried about supplying power to such units in the winter.”


“It is predicted that we will have a shortage of at least 5,000 MW of electricity to reach the goal of producing 55 million tons of steel by the Iranian calendar year 1404 (starts in March 2025).”


He noted that the only way to compensate for these shortcomings is to get help from the industrial units themselves.


“The way out of this problem is to increase investment, and for this reason, we invited 100 large companies in the country to help in this regard; later the number of these companies increased to 500 and they have a high potential for investment,” Zarandi explained.


According to the official, some solar power plants are also planned to be established for the country’s industrial parks as well to help meet their electricity needs.


Back in July, Zarandi had announced the signing of an MOU with the Energy Ministry for constructing power plants for big industries.


“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,” the official explained.


The mentioned power plants are financed by 12 investors from various industrial sectors and will be constructed within 2.5-3 years, according to him.


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, the official said.


“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


https://www.tehrantimes.com/news/464726/Major-industrial-firms-to-build-10-500MW-of-power-plants&ct=ga&cd=CAIyGjkyZjUyOTQ0YmIwMTA1Mzk6Y29tOmVuOkdC&usg=AFQjCNEDv7Iz_8QJwJFfWxd7n9gKq8JZu

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Iraq and Total sign $27 billion energy projects deal

BAGHDAD (Reuters) - France's Total will build four giant energy projects in southern Iraq under a $27 billion deal signed in Baghdad on Sunday, the country's oil minister said.


The company will start with an initial investment of $10 billion, CEO Patrick Pouyanne said at the signing ceremony, adding that engineering work will start "immediately".


The plan is to mobilise teams in Iraq by the end of 2021, he said.


Iraqi oil minister Ihsan Abdul Jabbar said the first phase will include a $3 billion investment by the French group in a project to inject sea water into oilfields to enhance crude recovery.


Total, he added, will also provide $2 billion to build a processing plant for gas produced at the southern fields of West Qurna 2, Majnoon, Artawi, Tuba and Luhais.


It is expected to produce 300 million cubic feet of gas per day (mcf/d) and double that after a second phase of development, Jabbar said.


The oil minister said that the gas produced from Total's project in the south will help Iraq to cut its gas imports from Iran, with the domestically produced gas also cheaper than the Iranian gas.


The cost of the gas imported from Iran is around $8 per million Btu and the gas that will be produced from Total's project would be $1.50 per million Btu cheaper, Jabbar said.


The other two projects are a solar power plant and one to increase crude output from the Artawi oilfield.


Total will help to boost output from the Artawi oilfield to 210,000 barrels per day of oil (bpd) from 85,000 bpd now, an oil ministry statement said.


(Reporting by Ahmed Rasheed; Writing by Maher Chmaytelli; Editing by David Goodman)


https://www.streetinsider.com/Reuters/Iraq%2Band%2BTotal%2Bsign%2B%252427%2Bbillion%2Benergy%2Bprojects%2Bdeal/18907113.html&ct=ga&cd=CAIyGmMwZTMyMmU3YmYyMjJjYzU6Y29tOmVuOkdC&usg=AFQjCNG4155Xbm34LDCaK8LwjosVQZHbU

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Russian Gazprom boosts output as gas exports increase

(MENAFN) In the January-August period of 2021, Russian leading state-run energy producer Gazprom has raised production of natural gas by almost 18 percent, against the very period of 2020.


The firm’s report, issued previously in the present week, read that the gas producer noted its production came to 337.2 billion cubic meters, representing a year-over-year expansion of 17.9 percent.


At the same time, natural gas exports outside the past Soviet Union witnessed a rise of 19.4 percent hitting 131.3 billion cubic meters. Supplies of natural gas to Turkey reportedly soared 173.6 percent in the first eight months, whereas shipments of the fuel to Germany and Italy surged by 39.3 percent and 15 percent correspondingly.


Gazprom also announced a strong increase in sales to Romania of 344 percent, whereas supplies to Serbia and Bulgaria increased by 123.9 percent and 50.9 percent each. In the meantime, shipments to Finland expanded by 22.7 percent. Greece raised purchases by 15.8 percent, whereas sales to Poland witnessed a marginal expansion of only 12 percent.


https://menafn.com/1102742751/Russian-Gazprom-boosts-output-as-gas-exports-increase%26source%3D24&ct=ga&cd=CAIyGjU0NTE4ZWVlZTY3NTRiMmQ6Y29tOmVuOkdC&usg=AFQjCNGmxpi0EFYwy28xvwyQA3e2BHbnN

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Cooking with gas? Not if Governor Murphy’s plan goes through | Mulshine

Tony Bucco is a Republican state senator from Morris County. He recently sent out a release critical of the state’s Energy Master Plan, which calls for an almost-total phaseout of natural gas by 2050.


“While some people may place greater value on the environmental benefits of using fully electric appliances, others have legitimate concerns about losing the ability that is provided by natural gas to heat their homes, cook food, or run a standby generator to power a sump pump or refrigerator when the power goes out,” he wrote.


When I called Bucco on Thursday, there were more than 60,000 homes and businesses in New Jersey without electricity.


Bucco’s house in a rural section of Boonton Township wasn’t among them. But he has lost power for long periods in prior storms.


“When a tree goes down here it takes some time for them to get out here to fix the problem,” he told me.


It’s quite a problem. Without power he can’t get water because the pump requires electricity. The sewer system relies on electric power as well.


As many of his neighbors have done, Bucco is planning to install a generator powered by natural gas.


“A lot of people’s generators are running right now so they can flush their toilets and cook their meals versus having to go to a hotel,” Bucco said.


He’d better get that generator installed quickly.


That master plan calls for a “transition to 100 percent clean energy by 2050” and natural gas doesn’t meet the state’s definition of “clean energy.”


The federal Energy Information Administration has a more positive view of gas. The EIA website states that “Burning natural gas for energy results in fewer emissions of nearly all types of air pollutants and carbon dioxide (CO2) than burning coal or petroleum products to produce an equal amount of energy.”


The EIA also tells us that natural gas is the state’s primary source of energy for generating electricity and that renewables provide just 5 percent.


It further tells us that “In 2018, three out of four New Jersey households used natural gas as their primary home heating fuel.”


But under the master plan, “New Jersey’s natural gas use declines to less than one fifth of today’s levels.”


The plan doesn’t state how that would be accomplished, but in other states the government is calling for homeowners to switch from gas heating and appliances to electric.


The administration has not yet released a timetable for meeting that goal. But when he unveiled the plan last year, Gov. Phil Murphy said New Jersey plans to lead the nation in “weaning the state off its century-old addiction to fossil fuels.”


“I guarantee you that within 10 years, every state will have to face up and do what we’re doing,” Murphy said.


Not likely, says Myron Ebell. Ebell, who is an energy specialist with the free-market Competitive Enterprise Institute, said many states have long-term plans like New Jersey’s. But they’re not working in the short term.


“It’s crazy,” Ebell said when I phoned him. “Compare these nutty and completely impossible plans with what’s actually happening in California and Arizona.”


In California, the planners wanted to move entirely to renewables such as wind and solar. But they soon found out they needed a consistent source of electricity for when the sun’s not out and the wind’s not blowing.


“Californians keep saying they want to get rid of gas, but faced with looming shortages at peak demand, California has ordered six peaker plants,” he said.


A “peaker plant” burns natural gas when renewables fall short. In Arizona, which has been hit by drought, the Salt River Project needed a consistent source of power to move water to cities like Phoenix.


The Salt River Project just agreed to spend almost a billion dollars on 16 new natural-gas plants.


At least they have lots of sun out west. The situation is different here in New Jersey, said Ebell.


“In New Jersey you have a particular challenge,” he said. “It’s not a sunny state. You don’t have a lot of onshore wind, and offshore wind is very expensive.”


What we do have is a 33,000-mile distribution network delivering natural gas to 2.7 million homes and businesses. Does the Murphy administration really want to cut supply to that system by four-fifths?


I couldn’t get Murphy on the phone but state Sen. Bob Smith was glad to chat. The Middlesex Democrat, who is an ardent environmentalist, said he will be sponsoring a bill to incorporate the master plan into the statutes.


“There is a way to deal with this climate-change thing and it is to electrify everything and make sure the electricity is from a renewable source,” Smith said.


When I asked whether this might require homeowners to switch from gas to electric, Smith responded, “Every damn week people are changing their houses. They’re installing sump pumps and French drains to deal with the flooding accelerated by climate change.”


As for me, I already have a sump pump.


But I sure would like to keep my gas stove.


ALSO - READ MY COLUMN ON HOW NATURAL GAS ACTUALLY LED TO THE DECLINE IN CO-2 LEVELS:


The opposition to clean-burning natural gas is more of a cult than a political movement. The cult leader is a guy by the name of Bill McKibben. An excerpt from that column on the Luddite nature of the anti-pipeline movement:


Blame a guy by the name of Bill McKibben. He’s an environmental activist who has declared a jihad on all pipelines, period. His goal is to “Keep It in the Ground” - the name for his campaign against fossil fuels.


“Every piece of fossil-fuel infrastructure will have to be contested,” McKibben writes. “Every month of delay adds new costs; every layer of uncertainty makes it harder for investors to justify.”


Read the whole thing.


(You can reach me as Paul Mulshine on Facebook and @mulshine on Twitter)


https://www.nj.com/opinion/2021/09/cooking-with-gas-not-if-governor-murphys-plan-goes-through-mulshine.html&ct=ga&cd=CAIyGjc2Yzc3N2QwYTNhYzhkMTc6Y29tOmVuOkdC&usg=AFQjCNFvUIxeP0Uq8uJoeZ0rnysCCS8D7

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Karnataka BJP MLA blames Taliban for fuel, gas price hike in India

Karnataka BJP MLA Aravind Bellad has blamed the Taliban and the Afghanistan crisis for the increase in the price of petrol, diesel, and gas in India that began in May, as per an NDTV report.


"Because of the Taliban crisis in Afghanistan, there has been a dip in supply of crude oil. Consequently, prices of LPG, petrol and diesel are rising. Voters are mature enough to understand the reasons for price rise," Bellad said. He was once considered to be a possible replacement of former Karnataka Chief Minister BS Yediyurappa.


India is the world’s third-biggest importer of crude oil. However, Afghanistan is not among India’s major sellers. In July 2021, Reuters reported that Iraq, Saudi Arabia, the United Arab Emirates, Nigeria, the United States, and Canada are the six countries that sell crude oil to India.


At the same time, the constant increase in India’s crude oil price has affected the public which is already affected by the Covid-19 pandemic.


India took up the issue with OPEC for 'affordable' oil price within a 'reasonable band’ as domestic retail fuel prices jumped to record high on rising international oil rates.


https://www.deccanherald.com/national/south/karnataka-bjp-mla-blames-taliban-for-fuel-gas-price-hike-in-india-1027217.html&ct=ga&cd=CAIyGjk5YzNmM2Y0NmU2Yjk4MTk6Y29tOmVuOkdC&usg=AFQjCNFx9ydzfX-pgFat7Pn3sahOSFsVk

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Preparing Guyanese youth for 21st century economic development

Few thoughtful human beings now dispute the notion of a short time window to combat global warming with any hope of success. Confirmation arrived with the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report released this month. Alarmingly, it concludes that many changes in the climate are “…unprecedented in thousands, if not hundreds of thousands of years, and some of the changes already set in motion — such as continued sea level rise — are irreversible over hundreds to thousands of years”.


More than half century of data indicates our global consumption of food, feed, fibre, timber, and energy account for unprecedented rates of fresh water and land use. Unavoidably, current modes of production guarantee such bounty contributes significantly to increasing net greenhouse gas (GHG) emissions plus loss of natural ecosystems.


The report's release coincides with currently observable climate events across the globe. Undoubtedly, this in part accounts for the changed nature of general perception and attitudes towards fossil fuel use. It may indeed be argued that, combined with current regulatory threats, the limited time horizon for international oil companies (IOCs) to revamp their business model dictates action now or risk obsolescence.


For Guyana, sustained economic development with equity requires a new thrust in provision of education. A thrust enabling a larger cohort of Guyanese youth to be part of expanded labour force participation in development activities, using the oil windfall as catalyst.


If the Government of the day is to realise its national objectives of promoting local content in the oil and gas sector, an educated, resilient Guyanese labour force that is capable and trainable is key to success.


In April 2020 commentary I wrote, 'Guyana: Workable, transparent gov't policy needed for oil and gas investment', an important bullet point read: “Guyana has but one limited, time-bound chance to make oil and gas its pathway to sustainable development with environmental and human development equity.”


Data from the Caribbean Examinations Council between 2006 to 2016 show passes (grades one to three on a scale of six) in English language and mathematics for the Caribbean Secondary Education Certificate (CSEC) hover around 49 per cent and 37 per cent respectively. Here are the results for the greater Caribbean: St Lucia (60 per cent), Trinidad and Tobago (60 per cent), St Kitts and Nevis (59 per cent), Grenada (57 per cent), Jamaica (53 per cent), St Vincent and the Grenadines (53 per cent), Guyana (50 per cent), Haiti (45 per cent). Importantly, merely 15 per cent of students leaving secondary school go on to university. Of this number, a large percentage emigrate. Absent available data, experts suggest Guyana tops this cohort.


Global economic activity has already embarked on a 'fourth industrial revolution'. New technologies bring both threats and opportunities. The latter, for Guyana, are undoubtedly substantial. Shall they be grasped? Today's enduring feature of Caribbean economy remains reliance on natural resource exploitation, despite the fact that so long ago Eric Williams recognised colonial British West Indian plantations as actually “factories in the field” — precursor to the First Industrial Revolution.


It was Williams who arranged for Sir William Arthur Lewis, St Lucian economist, first principal of the University College of the West Indies, subsequently Vice Chancellor of The University of the West Indies (UWI), and later professor of political economy at Princeton University, to provide his firmly based industrialisation proposals — so terribly and regrettably on occasion corruptly implemented.


Guyana to this day relies primarily on natural resource extraction — a model incapable of providing rising standards of living for a population with growing expectations. Young people — highly trained, potential future leaders — face unacceptably high levels of avoidable unemployment. Average youth unemployment across the Caribbean is as high as 30 per cent. Despairing this future, many emigrate.


Small size and extreme vulnerability mandate-appropriate education for Caribbean youth be promoted, not merely for personal social advancement but as national resilience strategy. The young population must acquire skills necessary and preparatory for competitive participation globally.


Congruent with emphasis on knowledge creation, generation, and innovation, investment in education must be twinned with building domestic capital. In such a dispensation, an enhanced capital sector shall use domestic capabilities to generate new knowledge and, by extension, productive, rewarding jobs.


Unemployment, in general, but amongst youth in particular, is by no means inevitable. Global demand for services in a multiplicity of areas plainly guarantee this. Limiting factors driving youth unemployment include uncompetitive or no infrastructure for information and communication technologies (ICT) — bandwidth an obvious limitation.


Guyana, as an English-speaking country with a literacy rate of over 85 per cent, is ripe for investments in such low-hanging fruit in both ICT and business process outsourcing (BPO). Yet this should not be the dominant desideratum, although there are significant near-term benefits to be gained from providing value-added services beyond the routine data entry and call centre operations.


A 20-to-30-year window of oil wealth generation is ample time to fix this. Our education system, particularly at the secondary school level, leaves too many youth behind. That this occurs is unsurprising, given the fact that the major influence in its creation was the English 'public school' — a model that groomed male upper-class youth for their role in governance and empire.


Should we agree re-examination of the education system is necessary, it's no big leap to figure the formative years — at least to high school level — should take precedence. Caribbean ministries of education have tinkered with approaches to refashioning “common entrance” examinations or its regional variants for students around 11-13 years of age. This, we may agree, is a pivotal age group.


Regrettably, these examinations act as a sorting mechanism, shunting our children either into “better quality” high schools or a holding bay for the rest, who, unavoidably, face an uncertain future. For those who fail to do well enough at the high school level, community colleges and their alternatives are perceived — not as high-quality institutions for the most able, but rather as places for those who do not 'cut it'. This prevails notwithstanding the fact that we know students blossom at differing rates.


This sorting mechanism has bad outcomes, particularly for males who have not yet acquired the maturity of their female counterparts. Many are thus left behind. This is a pernicious, unnecessary sorting mechanism. The challenge: How to give students at all levels a fair start to achieve required standards.


The legacy of this model might very well be lack of investment in the hard infrastructure and technology necessary to equip Guyanese and regional students for 21st century education — a fact made evident by the digital divide exposed during this novel coronavirus pandemic. The solution demands equalising quality at preparatory level, ensuring students, regardless of economic circumstance, receive a firm foundation.


Careful analysis should determine whether challenges identified start at an early age or later, and what contributing differences derive from resources available to private versus public schools. There's oh so much more to say! Guyana needs to act now to avoid creating more recruits to the Diaspora in continuing brain drain.


Wilberne Persaud is a writer, columnist, economist, and head of the Department of Economics at The University of the West Indies, Mona. His latest publication, Jamaica: Post-colonial struggles for dignity, equity and development – Wilberne Persaud Selected Columns 1976-2013, is available on Amazon.


https://www.jamaicaobserver.com/the-agenda/preparing-guyanese-youth-for-21st-century-economic-development_230519&ct=ga&cd=CAIyGmNkODMzMDNjMGU4NGQ4ZWU6Y29tOmVuOkdC&usg=AFQjCNELDlbuAw9WDkOB5c_rbfo4dn44l

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Tardy BHP ordered to clean up three oil and gas fields

BHP must clean up three offshore fields after years of “limited action” and equipment sinking to the seabed, adding to the decommissioning burden Woodside will inherit if it absorbs the miner’s oil and gas assets.


Offshore environment and safety regulator NOPSEMA directed BHP to fully decommission the Griffin and Stybarrow fields off WA and the Minerva field in Victoria’s Otway Basin.


The directions published today require all work to be done within five years or less, and fines could be levied if the schedule is not met.


At the Griffin field, 68km north-east of Exmouth BHP, must remove wellheads and Christmas trees from 15 wells and numerous infield pipelines and umbilicals, a riser turret mooring lying on the seabed, and a 60km long concrete coated pipeline to shore.


The Griffin field produced 167 million barrels of oil and 62 billion cubic feet of gas from 1994 to 2009. Two months after production ended, BHP disconnected the Griffin Venture oil production vessel from the floating riser turret mooring that is chained to the seabed.


In 2013 the RTM “unexpectedly sank to the seabed and now sits upright with its bottom resting on the seabed and its top 40 metres below the surface,” according to BHP.


BHP did not plug Griffin’s wells to make them permanently safe until 2017, eight years after production finished, and removed mid-depth buoys that supported flexible pipelines and umbilicals in 2018.


Legislation requires offshore oil and gas producers to remove all infrastructure they have installed unless, according to BHP, NOPSEMA accepts “alternatives to full removal where the titleholder is able to demonstrate that its proposal will deliver equal or better environmental outcomes.”


BHP will likely try to gain approval to leave the gas export pipeline on the seabed but will need to demonstrate it has sufficiently cleaned out mercury accumulated in the pipeline.


The cost to clean up Griffin, to be completed by the end of 2025, will be borne by owners BHP (45 per cent), ExxonMobil (35 per cent) and Inpex (20 per cent).


BHP and Woodside will equally share the cost to decommission the nearby Stybarrow oil field.


Twelve years of oil production at Stybarrow ceased in 2015, and again equipment sunk to the seabed before BHP removed it: this time mooring support buoys and the turret mooring in 2016.


At Stybarrow, 10 wells are yet to be plugged and abandoned, a potentially expensive operation in more than 800m water depth at what, when built, was Australia’s deepest offshore oil field development.


Wellheads at these ten wells and a further seven that are plugged must be removed, as do numerous pipelines, umbilicals, and the sunken turret mooring and buoys.


BHP must also plug four wells at the Minerva field off the Victorian coast that produced gas from 2005 to 2019. BHP must also remove subsea structures, umbilicals, and a gas pipeline to shore. Cooper Energy owns 10 per cent of Minerva.


All three NOPSEMA directions to BHP stated that “given the limited action to date,” it would increase its oversight of the three fields.


Should Woodside complete the purchase of BHP’s petroleum assets, it will bear all the costs to clean up Stybarrow, 90 per cent of the Minerva bill and 45 per cent at Griffin.


Woodside will also inherit 50 per cent of the liability to clean up the ExxonMobil operated Bass Strait assets where in May NOPSEMA ordered that 180 wells be plugged and ten platforms dismantled.


The Perth-based company will also double its exposure to decommissioning the vast North West Shelf project.


In February, NOPSEMA ordered Woodside to decommission its Enfield oil field in the same area as Griffin and Stybarrow. NOPSEMA is considering legal action against Woodside for not properly maintaining the riser turret mooring equipment at Enfield that now cannot safely be towed to shore for decommissioning.


NOPSEMA also today published a direction that Cooper Energy must decommission the Baker, Manta and Gummy fields off Victoria, which will require the plugging and abandonment of seven wells by 2026.


Main image: Griffin Venture floating production storage and offloading oil vessel. Source: BHP presentation.


https://www.boilingcold.com.au/tardy-bhp-ordered-to-clean-up-three-oil-and-gas-fields-offshore-wa-and-victoria/&ct=ga&cd=CAIyHGUzNTNmYzI0N2YyZGM3ODQ6Y28udWs6ZW46R0I&usg=AFQjCNFO0T5hBonh-YYpZkUlSld1eDzo4

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EIA: Permian continues to buck downward trends of other basins

As measured by the Energy Information Administration, the Permian Basin continues to buck the downward trends experienced by the nation’s other producing regions.


According to the EIA, associated natural gas production declines in the five major producing regions in 2020 – except for the Permian Basin, which increased both oil and associated gas production. However, the Permian’s increase in associated gas production could not offset declines in the other four major basins – the Bakken, Eagle Ford, Niobrara and Anadarko. Associated natural gas production fell 4.1 percent from 2019 levels to 14.2 billion cubic feet – accompanying a 9.2 percent drop in oil production from the five basins.


The Permian Basin, according to the EIA, produced 50 percent of the nation's associated gas and the agency attributed some of the increase to additional takeaway capacity.


Recently completed pipeline projects have increased takeaway capacity from the Waha hub in Reeves County to the Gulf Coast and to Mexico. Those projects include


• Kinder Morgan’s 2.1 billion cubic-feet-per-day Permian Highway Pipeline from the Waha to Katy that also connects to Mexico;


• Whitewater/MPLX’s Agua Blanca Expansion Project, connecting nearly 20 gas processing sites in the Delaware Basin and can move nearly 1.8 billion cubic feet per day to the Waha hub and likely expand to connect with the Whistler Pipeline to move 2 billion cubic feet more from the Permian Basin to the Gulf Coast;


• Fermaca’s 900 million cubic-feet-per-day Villa de Reyes-Aguasclaientes-Guadalajara pipeline in Central Mexico, which connects the Waha hub to Guadalajara and other population centers in west-central Mexico;


• Carso Energy’s 500 million cubic-feet-per-day Smalayuca-Sásabe pipeline that provides a more direct route for natural gas from the Permian Basin to northwest Mexico.


On the oil production side, the EIA reports the Midland Basin accounted for 15 percent of all US oil production in 2020. Natural gas production in the basin recovered to average levels faster than crude production because of stronger natural gas prices and more demand to support exports from the region.


The EIA quoted data analytics firm Enverus as saying the Midland Basin generated 1.68 million barrels per day of crude and 5.4 billion cubic feet per day of dry natural gas in 2020, 15 percent of total US oil production and 6 percent of total US dry natural gas production.


Midland Basin production reached a low of 1.5 million barrels a day of crude oil and 4.9 Bcf a day of dry natural gas in May 2020, but production has since increased. In January 2021, the Midland Basin generated 1.6 million barrels a day of crude oil, which was 5 percent more than its May 2020 low but 10 percent less than its monthly peak reached in February 2020. By comparison, Midland natural gas production peaked in late 2020 and reached an all-time high of 5.8 Bcf a day in October 2020, when new pipeline takeaway capacity out of the Permian Basin entered service.


At the end of July 2021, 107 drilling rigs and 28 hydraulic fracturing crews operated in the Midland Basin, according to Enverus Inc. At that time, the Midland Basin accounted for 44 percent of all rigs operating in the Permian Basin and 22 percent of all rigs operating in the United States. The Midland Basin’s rig count fell to as low as 58 active rigs last summer, when low crude oil prices led to drastic reductions in drilling operations


https://www.mrt.com/business/oil/article/EIA-Permian-continues-to-buck-downward-trends-of-16431186.php&ct=ga&cd=CAIyGjQ3MzczNDYwZjA3ODRhOGI6Y29tOmVuOkdC&usg=AFQjCNHHtKzCtqQK9cQb81RBcpUFptzba

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PT AKR Corporindo Tbk : Freeport Indonesia signs Agreement for Port construction and operations in JIIPE Manyar SEZ Port

September 06, 2021


JAKARTA, September 6, 2021 - PT Berlian Kawasan Manyar Sejahtera (BMS) operator of JIIPE Manyar Sea Port (affiliate of PT AKR Corporindo Tbk: AKRA.IJ) and PT Freeport Indonesia (PTFI) have signed agreement for Port facilities in JIIPE Sea port in Manyar, Gresik, East Java. PT Freeport Indonesia which is building 1.7 Million Metric Ton Copper Smelter and Precious Metal refinery in Java Integrated and Industrial Port Estate (JIIPE- SEZ) intends to use the Port Jetty Facility to be constructed by BMS for loading and unloading of PTFI's goods exclusively including installation of Equipment to support loading and unloading activities of PTFI's vessels.


Freeport is building copper smelter and refineries (CSR) as well as ancillary infrastructure and related including power, oxygen, water and sewage treatment, Conveyor Lines and pipelines and PTFI Pier, to process copper concentrate and produce copper cathode and by-products; Freeport precious metal refinery to be constructed shall process anode slimes produced by CSR as a by-product of copper concentrate processing


To support the operation of these facilities BMS will build facilities such as wharf structure for PTFI Jetty, Piers, Trestle, Bridge and Seawater Intake Building on BMS Reclamation which has already been completed; BMS shall also to operate the PTFI Wharf to handle all the vessels of PTFI for the Smelter Project.


The Agreement for construction and use of BMS Infrastructure was signed on September 3rd 2021 by Mr I Putu Sukadana President Director and Ms Dewi Djunaidi Finance Director of BMS and Mr Clayton Allen Wenas President Director, PTFI; The agreement is for a period of 40 years, whereby BMS grants PTFI the exclusive right to use and access the BMS infrastructure during that period to support the construction and operation of the Copper Smelter and Precious Refinery project in the JIIPE Gresik SEZ.


Illustration of PTFI port infrastructure requirement in the SEZ JIIPE Gresik


Speaking after the signing ceremony, President Director of AKRA, Mr. Haryanto Adikoesoemo, stated, 'Today, we have taken another major step in cementing relationship between JIIPE and PTFI. We are working together to ensure completion of PTFI project on time and its smooth commercial operations.


Connectivity is one of the key competitive strengths of JIIPE. The Port is the deepest in East Java with -16 LWS, 4 multifunction piers with 6,200 meters of berth, which are expected to be able to serve large vessels with loads of more than 100,000 DWT. International and domestic access is accommodated with sea, toll and train connectivity.'


Earlier, PTFI on August 27, 2021 had signed 80 years land lease agreement to build copper smelter and precious metal refinery and ancillary infrastructure and related facilities in SEZ JIIPE;


SEZ JIIPE Gresik, East Java is a joint venture between AKRA and PELINDO III and is one of major Public Private Partnership in Indonesia. It is built with a total area of 3,000 ha that comprises an industrial area of 1,761 ha, a deep seaport of 400 ha, and a modern residential area of 800 ha.


Haryanto Adikoesoemo


President Director


PT AKR Corporindo Tbk


https://www.marketscreener.com/quote/stock/PT-AKR-CORPORINDO-TBK-9059246/news/PT-AKR-Corporindo-Tbk-Freeport-Indonesia-signs-Agreement-for-Port-construction-and-operations-in-J-36353232/&ct=ga&cd=CAIyGjYwMWJjNmRlNzBlMWQ1MzU6Y29tOmVuOkdC&usg=AFQjCNF8jZTxHr7QLr9dDxZB42t2zd_uG

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Parts of Louisiana are under a flash flood watch as more than 500,000 in the state still have no power

(CNN) Louisiana residents who have been without power since Hurricane Ida hit last week could see more severe weather Monday.


Parts of southeastern Louisiana and southern Mississippi, including Baton Rouge, New Orleans and Gulfport, are under a heat advisory , as high temperatures will be in the upper 80s and lower 90s, with a heat index between 100 and 105 degrees.


In addition, a flash flood watch is in effect in the region from noon through the evening Monday as slow-moving thunderstorms are expected to develop. These storms will produce widespread heavy rain of 2 to 3 inches in a short period of time, which will likely lead to flash flooding due to soils already saturated with water.


Meanwhile, about 530,000 customers in Louisiana still do not have electricity, according to PowerOutage.US . The lack of power, excess heat and issues with water and fuel have made the ongoing conditions dangerous.


"We have seen a lot of folks getting heatstroke and other illnesses from not having access to medicine," St. Charles Parish President Matthew Jewell told CNN on Monday. "That's why we worked real hard this week to get a lot of our pharmacies opened up. That's why we've been working with the Sheriff's Office to make sure we do wellness checks on our elderly population because you just can't sit in this type of heat for extended periods of time."


Communities all along Ida's path -- from Louisiana up through New York -- are still working to recover more than a week after the storm made landfall as a Category 4 hurricane . Though it weakened into a tropical depression as it reached the Northeast, its heavy rains still brought devastation to the region.


In both regions, roadways turned to rivers, lives were lost and structures were destroyed by strong winds and rising waters. The recovery and repair could last weeks in some places, officials said.


President Joe Biden issued a major disaster declaration for five counties in New York and six counties counties in New Jersey, a designation that allows for federal assistance, state officials said.


In Queens, New York, those impacted by the storm were seeking resources to help in the recovery Sunday. Some needed help getting their utilities back, some needed help with the water damage and others needed assistance with the emotional traumas.


"If you drive around Queens, it looks like a bomb went off. Everybody's personal belongings are out on the street and we've seen what it looks like down south after a hurricane. This is what Queens looks like today. It's horrible," Queens resident Barbara Amarantinis told CNN.


Due to climate change, destruction like that seen in both the Gulf and East Coast from extreme weather will be "our new normal," Federal Emergency Management Agency Administrator Deanne Criswell warned Sunday.


"This is the crisis of our generation, these impacts that we are seeing from climate change, and we have to act now to try to protect against the future risks that we are going to face," Criswell said during an interview on Fox Sunday morning.


Hundreds of thousands without electricity in Louisiana


Michael Szeplaki helps to clean up his family's vacation house in the wake of Hurricane Ida on Saturday in Grand Isle, Louisiana.


In Louisiana, not only was the damage from the storm severe, but the impact on utilities has made it even harder for many parts of the state to recover. The biggest challenge is the lack of electricity.


Portions of Jefferson Parish experienced "more busted power poles (and) down utility lines than we've had in history" due to Hurricane Ida, said a Saturday update from Parish Councilman Dominick Impastato.


"There's not a neighborhood that's been spared, there's not a street that's been spared, there's not a neighborhood that doesn't have a massive amount of split power poles," said Impastato.


At least seven people have died after being evacuated from a nursing home to a warehouse in Tangipahoa Parish, Louisiana, CNN has reported . In response, State Sen. Kirk Talbot said he wants to require backup generators at nursing homes.


"I can tell you that the first bill I'll file next year will be to mandate that nursing homes have backup generator power," Talbot told CNN affiliate WDSU


The lack of power has led to cascading infrastructure issues: a shortage of fuel, lack of water pressure and problems at water treatment plants. Hospitals and some homes and businesses have tried to rely on generators, but that poses its own challenges, said Joe Valiente, Emergency Management Director of Jefferson Parish.


"Right now, our government and our response capabilities are on life support because we rely totally on generated power. And of course to have generators, you have to have fuel," Valiente told CNN. "So fuel has been short because two-thirds of our refinery capabilities were knocked out."


Those capabilities are coming back online, but for now, the parish has limited water pressure, non-functioning traffic lights and closed stores.



https://www.cnn.com/2021/09/06/weather/hurricane-ida-recovery-monday/index.html&ct=ga&cd=CAIyHDhlNDgwYmMzNTgyYzM1M2Q6Y28udWs6ZW46R0I&usg=AFQjCNGZoZekTFzx6xzztCYRBTQJ2i7GR

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O&G stocks look for certainty in economic recovery

GLOBAL oil prices may still be trading at above US$70 a barrel but oil and gas (O&G) stocks on Bursa Malaysia have come off their peaks, with the Energy Index skidding 17% since early this year. The mixed financial performance, foreign sell-off as well as environmental, social and governance (ESG) concerns are among the reasons behind the lacklustre share price, opines Kenanga Research’s O&G analyst Steven Chan.


“Overall, the sentiment is not very good — especially [for] the big caps, which have suffered from selldowns throughout the year, mostly due to foreign selling,” he tells The Edge.


Apart from that, Chan observes that some companies did not deliver strong financial results. “For the first time, Dialog Group Bhd posted a year-on-year decline in earnings. Petronas Dagangan Bhd (PetDag) has also been suffering from lower volume (sales) because of Covid-19.”


Hit by lower contribution from its downstream operations, Dialog’s net profit for the financial year ended June 30, 2021, fell 13.84% to RM543.14 million from RM630.36 million a year ago.


PetDag also posted lower earnings — its latest quarterly net profit ended June 30, 2021, had more than halved to RM82.14 million from RM191.11 million in the preceding quarter — as a full lockdown restricted interstate and inter-district travel.


Value seen in Dialog, Yinson and MISC


Nonetheless, Chan sees value emerging in stocks such as Dialog and Yinson Holdings Bhd as the former has fallen 21.7% year to date and the latter, 17.7%. He also favours MISC Bhd, which has gained a minimal 0.6% since early this year.


“The long-term outlook for Dialog and Yinson is very much intact, while MISC is a defensive play with a 5% dividend yield.”


HLIB Research, in an Aug 5 note, also highlighted that Dialog is undervalued and its recurring income is expected to improve with the commencement of Phase 3A of the Pengerang Deepwater Terminals as well as Langsat 3.


For trading play, Kenanga Research suggests investors take a look at Bumi Armada Bhd and Uzma Bhd. “Both are trading at very attractive valuations, especially Uzma, which is expected to recover in 2022 in line with the recovery in O&G activities.


“Barring any unforeseen circumstances, Bumi Armada will be able to sufficiently pay off its borrowings. In the past few months, [its] crackers have been quite stable and its cash flow is improving,” observes Chan.


As for O&G downstream players such as Lotte Chemical Titan Holding Bhd and Petronas Chemicals Group Bhd (PetChem), he points out that their earnings may have already peaked in the first half of the year.


“Valuations in this space are not cheap. A slowdown in petrochemical prices is expected in the second half of 2021 and first half of 2022, owing to increased capacity in the market, coupled with a normalisation in supply constraints,” he continues.


Lotte Chemical’s share price has contracted 28.8% from its peak of RM3.54 on May 10 following its best quarterly profit of RM440 million for the January to March 2021 period, since its relisting on the local bourse in July 2017.


In contrast, PetChem’s share price has gained 9.7% year to date on the back of improved results as its net profit jumped nearly fivefold to RM3.32 billion in the first half of the year against RM692 million in the previous corresponding period.


AmResearch remains bullish on PetChem’s earnings prospects given the strong correlation to its share price as rising naphtha costs should eventually lift petrochemical product prices.


“Given a one- to two-month time lag between product price movement and recognition in PetChem’s revenue, we expect 2HFY2021 earnings onwards to stage a stronger delivery as Brent crude oil prices are traded at or above the US$70 a barrel threshold currently versus a 2Q2021 average of US$69 a barrel,” notes the research house, which has maintained its “buy” call on the stock with a target price of RM7.94.


Kylie Chan, O&G analyst at TA Securities, believes the timing is right for investors to put their money in O&G stocks given the current “high oil price environment”. “Possible flattish prices or even a rebound is likely in the event that Delta variant headwinds dissipate quicker than expected,” she opines.


Upside catalysts include faster-than-expected oil demand recovery in tandem with the global economic recovery picking up speed. This, in turn, would accelerate capital expenditure spending and result in a short supply of O&G upstream services such as drilling, well services and fabrication.


“Correspondingly, this would result in a margin uptick for O&G contractors. Recall that the bulk of listed Malaysian players comprises upstream contractors vis-à-vis oil producers. Oil prices are expected to be resilient with the potential for upside.


“Demand growth will likely more than offset production increases by Opec+, [while] subdued US shale production will also cushion oil price downside,” she adds.


Going forward, Kenanga’s Chan believes the energy transition agenda will be very much in focus for the O&G sector, which is one of the sustainability-challenged sectors.


“Except for some big players, I think most O&G services providers and small players are not well prepared for the long-term energy transition agenda,” he says, adding that Petroliam Nasional Bhd (Petronas) has been encouraging O&G players to look for solutions within the renewable energy space.


“Generally, we are talking about lower oil prices in 2022, mainly because of the ramp up in supply from Opec (Organization of the Petroleum Exporting Countries) and the US as well. And this will outpace the demand growth in 2022.”


Lower oil price forecast for 2022


Kenanga’s Chan expects a pull-back in oil prices next year, with a lower average oil price forecast of US$65 against US$70 a barrel in 2021, as a surplus is widely projected in 2022.


As at 7pm last Thursday, Brent oil was trading at US$71.65 a barrel.


So far this year, Petronas’ capital expenditure spending has not been encouraging due to prolonged movement restriction measures, even though O&G has been identified as one of the essential services sectors. The oil company was reportedly planning to spend RM40 billion to RM45 billion annually over the next five years.


The logistics barriers have made it difficult for job execution in the O&G sector, says Kenanga’s Chan. However, Petronas’ 2021 activity outlook points to a slight increase in O&G activities next year following slower contract flows this year, he adds.


Current oil price levels may not be lucrative enough to loosen Petronas’ purse strings, observes Rakuten Trade Research vice-president Thong Pak Leng.


“I would say the US$70 level is not very attractive but it is [also] not very bad,” says Thong, who believes that Petronas will remain cautious about spending until there is more certainty of a pick-up in economic activities.


He is adopting a position between “neutral” and “slightly bias to positive” on the sector, as a global recovery post-pandemic will spur oil prices, which in turn will “lead to more contract awards by Petronas, [especially] if oil prices can sustain at high levels”.


He believes there is still some oil price upside given the anticipation of more oil usage as the global economy recovers.


The US Energy Information Administration expects Brent prices to remain near the current levels for the remainder of 2021, averaging US$72 a barrel from August through November.


“However, the continuing growth in production from Opec+ and accelerating growth in the US’ tight oil production [next year] — along with other supply growth — will outpace decelerating growth in global oil consumption and contribute to Brent prices declining to an average of US$66 a barrel in 2022,” the agency said.


Brent crude oil spot prices averaged US$75 per barrel in July, up US$2 from June and US$25 from end-2020. Brent prices have been rising this year as a result of steady draws on global oil inventories, which averaged 1.8 million barrels per day (bpd) during the first half of 2021 and remained at almost 1.4 million bpd in July.


Opec crude oil production is forecast to rise from 25 million bpd in April to an average of 27.1 million bpd in 3Q2021 on the assumption that Opec will raise production through the end of 2021, in line with the targets it announced on July 18. Production is expected to be relatively flat through October before rising in November and December and throughout 2022, the EIA added.


https://www.theedgemarkets.com/article/og-stocks-look-certainty-economic-recovery&ct=ga&cd=CAIyGmNkODMzMDNjMGU4NGQ4ZWU6Y29tOmVuOkdC&usg=AFQjCNEJfKleS03YnwGoetbjU8kXg_RPR

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U.S. Senior Advisor for Energy Security Hochstein to discuss Nord Stream 2 in Kyiv this week – official

U.S. Senior Advisor for Energy Security Hochstein to discuss Nord Stream 2 in Kyiv this week – official


Senior Advisor for Energy Security to U.S. Secretary of State Amos Hochstein will visit Kyiv this week to discuss the Nord Stream 2 gas pipeline, Advisor to the Ukrainian Energy Minister Lana Zerkal has said.


"At the end of this week, we will continue talking about this in Kyiv, which Amos Hochstein will visit. His work is aimed at ensuring energy security in Europe and resolving issues related to the implementation of the agreement reached between the U.S. President and the German Chancellor," she said on the Ukraina 24 TV.


Zerkal recalled that Germany is to certify the pipeline operator, the full subsidiary of Gazprom, Nord Stream 2 AG, and the European Commission shall confirm the certification.


"The gas pipeline cannot start operating until the certification is completed, but we already see that Russia plans to launch the gas pipeline without waiting for all decisions on certification," she said.


At the same time, Zerkal said that U.S. President Joe Biden has the necessary tools and powers to impose sanctions.


The adviser to the Ukrainian Miniser of Energy said that the transfer of Europe to supply gas from the Russian Federation only through the pipelines controlled by Gazprom – NS1, NS2 and TurkStream will significantly worsen the energy security of European countries.


As reported, early August, U.S. Secretary of State Antony Blinken, when appointing Hochstein, said that he would be in charge of the Nord Stream 2 topic.


https://en.interfax.com.ua/news/general/766477.html&ct=ga&cd=CAIyGjU0NTE4ZWVlZTY3NTRiMmQ6Y29tOmVuOkdC&usg=AFQjCNGa5O3KwSxXmUQokd15Do_ijdAmI

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Oil climbs on slow return of US supply after Hurricane Ida

MELBOURNE/SINGAPORE: Oil prices climbed on Wednesday, recouping some overnight losses from a stronger dollar and demand concerns, with a slow production restart in the US Gulf of Mexico and resumption of refining activities providing support.


US West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.6%, to $68.78 a barrel at 0643 GMT, after sliding 1.4% on Tuesday following the Labor Day holiday.


Brent crude futures gained 34 cents, or 0.5%, at $72.03 a barrel after falling 0.7% on Tuesday.


Asia Fuel Oil: 180-cst HSFO cash premium jumps


"The market is weighing up the impact of ongoing delays to the resumption of operations in the Gulf of Mexico," ANZ Research analysts said in a note.


Producers in the Gulf are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and drenching rain.


About 79% of US Gulf production remained offline on Tuesday, with 79 production platforms still unoccupied. About 17.5 million barrels of oil has been lost to the market so far.


The Gulf's offshore wells make up about 17% of US output.


"Refinery operations appear to be making a quicker recovery," ING analysts said in a note.


Only about 1 million barrels per day of capacity was temporarily closed, down from a peak of more than 2 million bpd, ING said, citing the latest situation report from the Department of Energy.


"However, those refiners that have restarted are unlikely to be operating at full capacity at the moment," the note added.


Traders will be closely watching inventory data from the American Petroleum Institute industry group due on Wednesday and the US Energy Information Administration on Thursday for a clearer picture of the storm's impact on crude production and refinery output.


Analysts polled by Reuters expect, on average, that crude stocks fell by 3.8 million barrels in the week to Sept. 3, and see gasoline stocks down by 3.6 million barrels and distillates down by 3 million barrels.


Oil prices fell on Tuesday in a widespread commodity selloff as the US dollar jumped on worries that rising COVID-19 cases in the United States and Asia will potentially lead to slower growth.


https://www.brecorder.com/news/40118803&ct=ga&cd=CAIyHDM5Y2IwZGNmNjdlYTRiN2M6Y28udWs6ZW46R0I&usg=AFQjCNFlW9IfuaqddoJ6bkEesI3rfhnyd

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Asian petchem firms feel pinch from low US LPG stocks

Tight US supplies should continue to support Asia-Pacific LPG prices and weigh on PDH and cracking margins as dependence on the country's exports grows


The spectre of insufficient US propane stocks heading into winter has resulted in Asia-Pacific prices evading a typical summer slump this year, instead rising to multi-year highs and depressing profit margins for the petrochemical industry. This highlights the growing dependence between US supplies and prices in Asia, where petrochemical sector consumption is growing rapidly.


US propane stocks were 27pc lower than a year earlier at 69.3mn bl (5.59mn t) by 27 August, data from government agency the EIA show. Concerns over inadequate US inventories pushed Mont Belvieu LST propane prices on the US Gulf coast to $119.25¢/USG ($622.75/t) by 2 September - the highest in more than seven years. The rise rippled eastward, where Argus Far East Index (AFEI) propane prices hit their highest in almost seven years at $717.75/t on 2 September, although the Asian-delivered benchmark has lagged the US' fob Gulf coast counterpart on weak seasonal residential demand and Covid-related lockdowns in China that have depressed commercial and industrial demand. The October Mont Belvieu-AFEI spread narrowed to $105/t by 2 September from $115/t a week earlier.


Strong domestic prices in the US and a weak arbitrage to Asia-Pacific could entice Gulf coast terminal operators to again buy back cargoes, leaving less available for export. Flexible ethylene crackers in Asia that tend to switch to LPG from naphtha during the summer, when weak heating demand pushes LPG to steeper discounts, instead found it at a premium of $79/t to naphtha cif Japan on 19 August.


Chinese petrochemical producers had to reshuffle feedslates at their growing fleet of flexible crackers in July, switching back to naphtha as LPG moved above it. Shanghai Secco's 1.2mn t/yr cracker, Fujian Refining and Petrochemical's 1mn t/yr cracker and Hengli Petrochemical's 1.5mn t/yr integrated cracker displaced nearly 46,000 t/month of LPG by switching to naphtha between June and August. State-controlled oil firm CNOOC and Shell Petrochemical plan to continue feeding 24,000 t/month of refinery LPG to their 1.2mn t/yr cracker as LPG supplies from CNOOC's Huizhou refinery have remained competitive, a market participant says.


Margins at ethylene crackers with a higher reliance on LPG and propane dehydrogenation (PDH) plants have been hit hardest by firm LPG prices. Huatai Shengfu's 800,000 t/yr Ningbo cracker runs on 40-50pc propane, while SP Chemicals' 600,000 t/yr Jiangsu unit is 70pc LPG-fed. Wanhua Chemical's new 1mn t/yr Shangdong cracker consumes up to 90pc of propane. Cracker margins for propane fell to minus $37/t in the week to 1 September, while PDH margins remained depressed at $15/t. Downstream profits from cracking naphtha were at $234/t.


Shutdowns at crackers and PDH units have provided a brief reprieve for margins by cutting run rates. Grand Resources took its 600,000 t/yr PDH unit in Dongguan off line unexpectedly for a week in mid-August, and two of Oriental Energy's PDH units have been shut for a month-long maintenance since the first half of August. PDH margins in China were near breakeven in July, with utilisation averaging 90pc. But operating rates dropped by over 20pc to 70pc by mid-August following the shutdown of the Grand Resources and Oriental units. Wanhua Chemical's cracker and 750,000 t/yr PDH plant are scheduled to enter maintenance in early September, while Zhejiang Huahon's 450,000 t/yr PDH is due for a month-long turnaround this month.


The drop in LPG demand in July resulted in China importing 2.05mn t, down by 17pc on the month, with domestic production stable at 4.18mn t. The US was the largest single source for China in July, making up 35.5pc of total LPG imports, meaning tight US supplies are likely to continue supporting LPG prices in Asia-Pacific. But the impact of higher prices on downstream profit margins for Asia-Pacific petrochemical producers could result in demand destruction.


https://www.marketscreener.com/news/latest/Asian-petchem-firms-feel-pinch-from-low-US-LPG-stocks--36371878/&ct=ga&cd=CAIyGjhhN2FiYzg4ZWE0MjI3MzE6Y29tOmVuOkdC&usg=AFQjCNH2A7oaGAnK84vIXXXvCGpEfA9cv

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Cenovus (CVE) Eyes Atlantic Assets Rejig, $10B Net Debt

Cenovus Energy Inc. recently agreed to restructure its stakes in the Atlantic region with respective partners in the region. The agreement incorporates its working interests in Terra Nova and White Rose projects. The move is expected to improve the company’s economics in the region.

The deal will increase its stake in Terra Nova to 34% from 13%. Also, it will receive $78 million from the exiting partners for future asset retirement obligations. The asset life expansion project at Terra Nova will likely proceed, extending the field’s life to 2033. Production from the site will likely resume before 2022-end. Output from the field is expected to reach 29,000 barrels per day by 2023.

The company also agreed to decrease its stake in the White Rose project, while partner Suncor Energy Inc. will receive an increased working interest. Cenovus’ stake in the field will be reduced from 72.5% to 60%, while the same in the satellite extensions will be decreased to 56.375% from 68.875%. Per the deal, Suncor’s stake in the offshore field will likely rise to 40% from 27.5%. The West White Rose project restarting decision is expected to be made by the middle of the next year.

The restructuring move from Cenovus is likely to make its upstream portfolio more profitable and free up some capital, which can be allocated more efficiently toward producing assets. These steps are likely to boost shareholder value. Further, the Terra Nova asset life expansion project and restart of the West White Rose project can enable it to attain its target of achieving compound annual production growth of 2-3% from 2020 to 2024.

Additionally, the company announced that it is working toward reaching the target of $10 billion net debt this year. At second quarter-end, the company had $12.4 billion in net debt. With its rising free funds in recent quarters, Cenovus is likely to achieve the goal within time. In the first half of 2021, it generated $1,877 million in free funds flow, reflecting a massive improvement from the year-ago free funds outflow of $1,074 million. Upon reaching the goal, it intends to allocate parts of the free funds for increasing shareholder returns.


https://www.zacks.com/stock/news/1794237/cenovus-cve-eyes-atlantic-assets-rejig-10b-net-debt&ct=ga&cd=CAIyHDYwNDFiZWVmMjA5MzEzZjE6Y28udWs6ZW46R0I&usg=AFQjCNExVeRv9wZpI5gyjjgD-KdLwMvgu

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Report: Oil and gas firms must halve production by 2030 if world is to deliver Paris Agreement

Report: Oil and gas firms must halve production by 2030 if world is to deliver Paris Agreement


Oil and gas companies must plan for major production declines by the 2030s to meet the 1.5C target laid out in the Paris agreement, or risk losing $1trn, according to a new report. Firms are still approving billions of dollars of investment in major projects which are inconsistent with 1.5C, the report by financial thinktank Carbon Tracker, published today (9 September), found.


It revealed even those with net-zero commitments continue to explore for new oil and gas. Carbon Tracker's head of oil, gas and mining and report co-author Mike Coffin warned that these companies are “betting against the success of global efforts to tackle climate change”.


“If they continue with business-as-usual investment they risk wasting more than a trillion dollars on projects which will not be competitive in a low-carbon world,” he added. ‘Adapt to Survive’ is Carbon Tracker’s fifth annual analysis of the risk of investing in oil and gas producers. It warned investors that companies have not woken up to the “seismic implications” of the International Energy Agency’s finding that no investment in new oil and gas production is needed if the world aims to limit global warming to 1.5C. This would mean production at 20 of the world’s 40 largest listed companies would shrink by at least 50% by the 2030s as existing projects run down with no replacements, the report found.


Most large shale oil companies would experience a production drop of more than 80%. Carbon Tracker's associate analyst and report co-author Axel Dalman said: “In general, no new projects and a rapid decline in production could deliver a serious shock to company valuations, as new project options are rendered effectively worthless and future cashflows are reduced. Lower equity valuations would in turn increase the cost of capital and insolvency risk.


“It is crucial for companies to have a strong transition plan, winding down oil and gas activities in an orderly manner and either diversifying into low-carbon businesses or returning capital to shareholders.” The report also warned that if firms continue to invest in projects expecting a business-as-usual future of stable or rising demand, they risk being left with stranded assets that are uneconomic in a low-carbon world. National climate policies and rapid growth of clean technologies will reduce demand, drive down prices and lead to significantly lower revenues, the report said.


Even amid the Covid-19 pandemic, as oil prices collapsed and boards cut dividends, companies continued to make investments that bet against the 1.5C target. Investors are increasing pressure on fossil fuel companies to align with the Paris target, as awareness of the environmental and financial risks of pursuing business-as-usual grows. Carbon Tracker’s research gives them ammunition to challenge companies over their plans for the energy transition.

It is used by Climate Action 100+ – backed by investors managing more than $55trn in assets – which presses companies to take action on climate change and cut emissions.


https://www.edie.net/news/9/Report--Oil-and-gas-firms-must-halve-production-by-2030-if-world-is-to-meet-Paris-Agreement/&ct=ga&cd=CAIyHGUzNTNmYzI0N2YyZGM3ODQ6Y28udWs6ZW46R0I&usg=AFQjCNGsqCKfR-HHEo_Pv8GDtFjF7lGfv

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US expects higher gas production next year

US expects higher gas production next year


A US federal forecast from September 8 anticipates dry natural gas production increasing by about 3% from second-half 2021 levels by next year.


The US Energy Information Administration (EIA) in its monthly market report for September said it expected dry natural gas production to average 92.7bn ft3/day during the second half of the year, a 1.1% increase from first-half levels.


Natural gas production next year is expected to climb to 95.4bn ft3/d, driven by higher commodity prices.


EIA in its latest drilling productivity report forecast natural gas production from inland shale basins will average 86bn ft3/d in September. Though idled because of the impact of Hurricane Ida, offshore production would presumably account for the bulk of the remainder of the full-year forecast.


EIA add that it expected crude oil and natural gas prices will “remain at levels that will support enough drilling to sustain production growth.”


EIA raised its fourth quarter forecast for Henry Hub spot prices by 16% from its August forecast, to $4.00/mn Btu. It also raised its 2022 forecast by 13%, to $3.47/mn Btu. Henry Hub prices could jump to $4.25/mn Btu by January due to increased heating demand, however.


Exports of natural gas as LNG are expected to increase from an average of 9.6bn ft3/d to 10.15bn ft3/d next year.


Natural gas consumption, meanwhile, is expected to move lower because power generators are reverting to coal due to higher natural gas prices.


https://www.naturalgasworld.com/us-expects-higher-gas-production-next-year-91949&ct=ga&cd=CAIyHDUzMTgxZGM2Y2MyMjAzMDQ6Y28udWs6ZW46R0I&usg=AFQjCNGMgzUaaYHK4H8U2APeWtY7cwEwA

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U.S. crude stockpiles decrease

U.S. crude inventories decreased by 1.5 million barrels last week.


The nation’s commercial crude inventories fell to 423.9 million barrels during the week ended Sept. 3 from 425.4 million barrels the previous week, the Energy Department said Wednesday, leaving the nation with about 6 percent less crude on hand than the five-year average for this time of year.


SAUDI ARAMCO: Aramco considers opening $110 billion gas project to investors


Gasoline inventories decreased by 7.2 million barrels and are 4 percent below the five year average for this time of year. Jet fuel inventories decreased by 160,000 barrels last week.


Refineries took in an average of 14.3 million barrels a day last week, some 1.6 million barrels per day less than the previous period, the Energy Department said. Refineries operated at about 81.9 percent of capacity. Over the past four weeks, refineries have produced 9.5 million barrels a day of gasoline, about 8.9 percent more than during the same period last year, when much of the nation was shut down amid the pandemic.


West Texas Intermediate, the nation's benchmark crude price, was steady Thursday at just over $69.


https://www.houstonchronicle.com/business/energy/article/U-S-crude-stockpiles-decrease-hurricane-ida-china-16445894.php&ct=ga&cd=CAIyHGMzMDI4NGM4N2E3MjhhZTM6Y28udWs6ZW46R0I&usg=AFQjCNEVeV_QmKsRezLEbkF6tHVWBZADs

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ExxonMobil Announces Discovery at Pinktail, Offshore Guyana

IRVING, Texas--(BUSINESS WIRE)--ExxonMobil today said it made a discovery at Pinktail in the Stabroek Block offshore Guyana. The Pinktail well encountered 220 feet (67 meters) of net pay in high quality hydrocarbon bearing sandstone reservoirs. In addition to successful appraisal of the Turbot discovery, the Turbot-2 well encountered 43 feet (13 meters) of net pay in a newly identified, high quality hydrocarbon bearing sandstone reservoir separate from the 75 feet (23 meters) of high quality, oil bearing sandstone reservoir pay encountered in the original Turbot-1 discovery well. This follows the additional pay in deeper reservoirs encountered at the previously announced Whiptail discovery. These results will be incorporated into future developments.


“These discoveries are part of an extensive well program in the Stabroek Block utilizing six drillships to test play extensions and new concepts, evaluate existing discoveries and complete development wells for the Liza Phase 2 and Payara projects,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Our exploration successes continue to increase the discovered resource and will generate value for both the Guyanese people and our shareholders.”


Separately, the Liza Unity floating production storage and offloading (FPSO) vessel set sail from Singapore to Guyana in early September. The FPSO will be utilized for the Liza Phase 2 development and is expected to begin production in early 2022, with a capacity to produce approximately 220,000 barrels of oil per day. ExxonMobil anticipates at least six projects online by 2027 and sees potential for up to 10 projects to develop its current discovered recoverable resource base. The Liza Destiny FPSO vessel is currently producing approximately 120,000 barrels of oil per day.


The Pinktail discovery is located approximately 21.7 miles (35 kilometers) southeast of the Liza Phase 1 project, which began production in December 2019, and 3.7 miles (6 kilometers) southeast of Yellowtail-1. Pinktail was drilled in 5,938 feet (1,810 meters) of water by the Noble Sam Croft. The Turbot-2 discovery is located approximately 37 miles (60 kilometers) to the southeast of the Liza phase one project, and 2.5 miles (4 kilometers) from the Turbot-1 discovery announced in October 2017. Turbot-2 was drilled in 5,790 feet (1,765 meters) of water by the Noble Sam Croft.


The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.



https://www.businesswire.com/news/home/20210909005223/en/ExxonMobil-Announces-Discovery-at-Pinktail-Offshore-Guyana&ct=ga&cd=CAIyGjI1ZGMwYjMxNzYyMTg5NGY6Y29tOmVuOkdC&usg=AFQjCNEv4WWQftBVaOBexxJgCTcfscLsc

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Oil eases after rally, decline in U.S. output limits losses

SINGAPORE, Sept 9 (Reuters) - Oil prices ticked lower on Thursday, giving up some of the last session's gains although a decline in U.S. Gulf of Mexico output following Hurricane Ida provided a floor under the market.


Brent was down 18 cents, or 0.25 per cent to $72.42 a barrel at 0107 GMT and West Texas Intermediate (WTI) crude gave up 17 cents, or 0.25 per cent, to $69.13 a barrel.


"U.S. production is struggling to recover from Hurricane Ida," ANZ said in a note. "Extensive damage to infrastructure and power outages mean Ida has knocked off more supply after nine days than any other storm."


About 77 per cent of U.S. Gulf production remained offline on Tuesday, or about 1.4 million barrels per day (bpd). The market has lost about 17.5 million barrels of oil so far.


The Gulf's offshore wells make up about 17 per cent of U.S. output.


U.S. crude oil production is expected to fall by 200,000barrels per day in 2021 to 11.08 million bpd, the U.S. Energy Information Administration (EIA) said on Wednesday, noting that Hurricane Ida should force a bigger decline than its previous forecast for a drop of 160,000 bpd.


American Petroleum Institute (API) data showed that crude drawdown for the week ended Sept. 3 was smaller than expected in a Reuters poll, but gasoline and distillate drawdowns were bigger than expected.


API data showed U.S. gasoline stocks fell by 6.4 million barrels for the week ended Sept. 3, while crude stocks dropped by 2.9 million barrels.


U.S. distillate stocks fell by 3.7 million barrels over the same week, API data showed.


On Wednesday, oil was also supported as protesters in Libya blocked oil exports at Es Sider and Ras Lanuf, an oil engineerat each of the ports said, although other engineers said production at fields that supply the terminals was unaffected.


https://www.thehindubusinessline.com/markets/commodities/oil-eases-after-rally-decline-in-us-output-limits-losses/article36374300.ece&ct=ga&cd=CAIyGjk5YzNmM2Y0NmU2Yjk4MTk6Y29tOmVuOkdC&usg=AFQjCNFiHJGZKbEk97o2abB-xbn7cW7wu

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Oil demand now rising visibly

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Alternative Energy

'Hydrogen council' to be launched this week

Hyundai Motor fuel cell truck XCIENT / Courtesy of Hyundai Motor


By Kim Hyun-bin


The government aims to achieve carbon neutrality by 2050, with plans to invest 12 trillion won into related industries and policies next year as the first step.


In order to back up the government's initiatives, several major conglomerates are set to update their investment plans for hydrogen-centric businesses this week, according to company officials, Sunday.


Top-tier companies including Hyundai Motor Group, SK Group and Lotte Group have formed an alliance to launch a "hydrogen council" aimed at cutting carbon emissions. The official launch ceremony, to be held on Sept. 8, will be attended by Hyundai Motor Group Chairman Chung Euisun, SK Group Chairman Chey Tae-won and Lotte Group Chairman Shin Dong-bin.


The council will be officially launched Wednesday, following the H2 Business Summit held on the sidelines of the H2 Mobility + Energy Show 2021 at KINTEX Convention Center in Goyang, Gyeonggi Province.


Hyundai Motor will play a central role in the upcoming show, as it plans to host the "Hydrogen Wave" event to specify the key hydrogen-related technologies, strategies and next-generation fuel cell systems that have evolved under the firm over the last 23 years. Hyundai Motor was the world's first to commercialize fuel cell vehicles in 2013, and it aims to produce 500,000 vehicles annually by 2030.


POSCO Chairman Choi Jeong-woo, Doosan Chairman Park Jeong-won, Hyosung Chairman Cho Hyun-joon, Hanwha Group heir Kim Dong-kwan and senior executives at GS Caltex and Kolon are set to participate in the event, according to the companies.


From a policy standpoint, Korea recently passed a bill to cut greenhouse gas emissions by 35 percent by 2030 under the Climate Crisis Response Act, becoming the 14th country to pass such a legislation. Reducing emissions to net zero has emerged as a global agenda to fight climate change since the Paris climate accord went into effect in 2016. Korea aims to go carbon-free by 2050 by transforming the country's fossil fuel economy to an eco-friendly one. The EU and the U.S. vowed to go carbon neutral by 2050 and China by 2060.


According to a Goldman Sachs report last year, the global hydrogen market is predicted to reach $12 trillion by 2050, which is the reason why local conglomerates are starting to invest heavily in the field.


On a related note, SK said it will invest 18.5 trillion won into hydrogen-centric businesses, aiming to create a hydrogen value chain from production, distribution to consumption by 2025.


POSCO aims to generate 30 trillion won in sales from the hydrogen-focused business by 2050 with the country's steel giant planning to produce 5 million tons of hydrogen by 2050.


https://www.koreatimes.co.kr/www/tech/2021/09/515_315063.html%3Fgonw&ct=ga&cd=CAIyHGI5MGFmOTE0YWZjMDNhOTA6Y28udWs6ZW46R0I&usg=AFQjCNHMTytgeq9eGn4YTD_z2VtIGAbAy

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Mercedes-Benz AMG EQS is a dual-motor electric sedan with over 750 horsepower

Mercedes-Benz said recently that it was going all-electric by 2030, which naturally got race fans excited about the possibilities of an electric high-performance car from the automaker’s AMG sub-brand. Today, we’re getting our first look at the upcoming AMG EQS, a wickedly fast sport sedan with a 0-60 mph time of 3.4 seconds and a top speed of 155 mph. It made its public debut at the 2021 IAA Mobility show in Germany.


The AMG EQS is the first battery-electric production car from the automaker’s in-house performance subsidiary. As such, there’s a lot riding on Mercedes getting everything exactly right if it wants to satisfy its loyal customers while also luring new ones away from Tesla.


first battery-electric production car from the automaker’s in-house performance subsidiary


This is a driving machine made for “car enthusiasts,” Mercedes said — and at first glance it’s easy to see why, with its smooth lines and aerodynamic profile. The question is how car enthusiasts will react to the completely silent electric motors, or Mercedes’ attempt to fill the void left by the lack of a V8 with something called “emotive vehicle sound.” (More on that in a bit.)


The EQS, the all-electric version of the automaker’s storied S-class sedan, came out this year to rave reviews. When we tested it, we came away impressed by the powerful battery, wide range of driving modes, and the over-the-top in-car technology. Mercedes needs the AMG version of the EQS to be equally impressive if it wants to compete with Tesla, Audi, BMW and others in the luxury segment.


A quick look at the spec sheet reveals a lot to be impressed by. The sedan’s dual motors will put out 649 horsepower, with a maximum torque of 700 ft-lbs. If somehow that’s not enough acceleration, you can kick the horsepower up to 751 while using Race Start mode with boost function, which also increases the torque to 752 ft-lbs.


The 400-volt battery has a usable energy content of 107.8kWh, which is more capacity than every Tesla vehicle. Mercedes says it has reduced the cobalt content of the battery’s chemistry to 10 percent. Cobalt is the most expensive material used in batteries, so eliminating it from the mix is expected to help EVs become as affordable as those that run on gas. It has also been called the “blood diamond of batteries” because it’s been mined in a way that’s endangered child workers and wrecked the environment in the Democratic Republic of Congo.


Mercedes says the battery management system is also configured specifically for AMG. In the Sport and Sport+ driving modes the focus is on performance, while Comfort mode focuses on operating range. Given what we know about the EQS’ driving modes and the use of regenerative braking, that is sure to be a welcome feature when you’re in the driver seat.


And you know Mercedes is really excited to explain the AMG’s unique sound profile because it’s really high up in the press release under the subhed “AMG SOUND EXPERIENCE: emotional sound spectrum for a unique driving experience.” The whole idea is because EVs are silent, the automakers are creating their own fake sounds that match the vehicle’s acceleration, so you aren’t flying around the race track in a completely silent sports car.


Mercedes says it used “special loudspeakers, subwoofers and a sound generator to create a special sound experience in two versions: ‘Authentic’ or ‘Performance.’” The fake sounds are generated inside and outside the vehicle to match the driving status. There’s a video that includes the sound, and honestly, I’m fine with it. It’s not an engine growl, but it also doesn’t sound overly manufactured. I wasn’t a huge fan of the Volkswagen ID 4’s fake sound, but this one seems like it won’t offend too many people.


The AMG EQS is built on one of three bespoke EV architectures built by Mercedes for its new lineup of electric vehicles. This car and future electric AMG models will be built on the AMG.EA architecture, the company said.



Inside, you’ll find the Mercedes Hyperscreen, three screens embedded in a single piece of glass that extends from pillar-to-pillar. It runs on the automaker’s MBUX system, but also includes something unique to AMG:


AMG TRACK PACE, the virtual race engineer, is also available as an option: the software is part of the MBUX infotainment system and permanently records more than 80 vehicle-specific data (i.e. speed, acceleration), for example while driving on a racetrack. On top of this, lap and sector times are displayed, as well as the respective difference from a reference time. Because specific display elements are shown in green or red, the driver is able to see at a glance, without reading numbers, whether they are currently faster or slower than the best time.


Think of it like a fitness app that tracks your workout performance, but for your car. Race enthusiasts are going to find a lot to like here.


We still don’t have a production date or a suggested retail price. The 2021 EQS costs well over $100,000, so don’t expect this one to retail for anything less than $120,000. The question is whether Mercedes can get this car to customers before the release of the next-gen Tesla Roadster, which was just delayed to 2023. If they can than the AMG EQS has a real chance to steal the show.


https://www.theverge.com/2021/9/5/22654508/mercedes-benz-amg-eqs-electric-performance-specs-iaa&ct=ga&cd=CAIyGjJkODY2YzczMTEyY2M5NWY6Y29tOmVuOkdC&usg=AFQjCNF0kBY-rtFh-VB92hSDOuUr0izAC

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German decision on Tesla subsidies expected by end of year

BERLIN, Sept 5 (Reuters) - Germany will probably decide by the end of the year how much state aid U.S. electric vehicle maker Tesla will receive for its planned battery cell factory near Berlin, an economy ministry spokesperson said on Sunday.


The European Union in January approved a plan that includes giving state aid to Tesla, BMW and others to support production of electric vehicle batteries and help the bloc to reduce imports from industry leader China.


The EU's approval of the 2.9 billion euro ($3.45 billion) European Battery Innovation project, which includes more than 40 companies, follows the launch in 2017 of the European Battery Alliance to support the industry during the shift away from fossil fuels.


Tesla plans to invest 5 billion euros in its battery cell factory at Gruenheide near Berlin to complement its nearly finished electric car factory at the same location, according to estimates from the German economy ministry.


The unusually high investment volume means that the U.S. car manufacturer can count on German state subsidies of 1.14 billion euros, Tagesspiegel newspaper reported on Sunday.


This chimes with a February report by Business Insider, which said Tesla stands to receive at least 1 billion euros in public funding from Germany for setting up its battery cell factory near Berlin.


The economy ministry spokesperson said there was no final sum yet because talks with the carmaker and the European Commission are ongoing, adding that a final decision is likely before the end of the year.


Tesla Chief Executive Elon Musk last month said he hoped the first cars at its planned gigafactory in Gruenheide could be built in October or soon afterwards.


Tesla has pushed back the expected opening of the gigafactory to late 2021, blaming German bureaucratic hurdles. The plant has also faced local resistance because of environmental concerns.


Economy Minister Peter Altmaer last Thursday said that carmaker Opel will receive a 437 million euro government grant for its battery cell factory in Kaiserslautern as part of the wider European initiative to create a homegrown battery industry.


($1 = 0.8416 euros)


https://news.trust.org/item/20210905114008-i7kxs/&ct=ga&cd=CAIyGjJkODY2YzczMTEyY2M5NWY6Y29tOmVuOkdC&usg=AFQjCNFoIA4nsO5vdjw3_5ETZFR3bKAyS

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Investors Are Increasingly Aware Of ‘Carbon Intensity’

Measuring carbon intensity is about to become a big business. The Big Four accounting firms have announced huge expansions of staff and investment to cater to this new business opportunity. Perhaps we’re paranoid, but we view this as a necessary predecessor to a carbon tax. The more accurately pollution is measured, the more accurately it can be taxed, at least in theory. And on top of that, the carbon offset business, recently in the news when forests planted out west to offset carbon emissions burned down. The carbon offset trade has set up a high level study of means to standardize and trade offsets, while disputing claims that offsets are nothing but licenses to pollute. Without offsets, big corporations will have to really reduce their emissions. Those carbon neutral pledges will go up in smoke, so to speak.


For now, though, we want to examine carbon intensity and risk. Carbon intensity is just one part of ESG investing— that is, considering the environmental aspects of any business, whether it meets social responsibility requirements and whether the company is governed up to standards. ESG investing is not a goody-goody cottage industry. Funds supposedly following these standards have over $900 billion under management. We are not sure how well managed, though. DWS, a major German investment manager is now under investigation by US and German authorities for issuing misleading statements about the extent of the firm’s ESG investing.


The financial press speculates that more firms may run into trouble. Meanwhile, a think tank claimed that big fund managers had ESG portfolios not only misaligned with the goals of the Paris Accord but also owning oil and gas stocks. A fund manager explained that the holdings represented “tilting strategies” that reduced the carbon footprint of the fund while still obtaining a benchmark return. Sounds like “leaning in” to carbon mitigation without actually taking the full plunge. In other words, yes, these ESG oriented portfolios still own oil and gas stocks. Just less of them, that is, below their respective benchmark’s weighting. George Soros, the veteran fund manager, wants Congress to enact laws that require funds to invest only in companies that meet the governance (G) standard of ESG. What if the politicians add in the S and G standards?


Keep in mind that there is a big difference between a lot of vague corporate discussions regarding deep and meaningful CO2 emissions reductions at some indefinite point between now and 2050 and what the corporation says in documents filed with the Securities and Exchange Commission (SEC). The former says to us the corporation and its board see no urgent need to address this issue and may do so leisurely, perhaps in their 2045-2050 planning horizon. (In this vein we read recently that PacifiCorp, owned by Warren Buffett’s Berkshire Hathaway, announced the closure of its last Wyoming coal plant in 2039. Buffett is 91.) But misrepresenting actual investment policy in a securities prospectus is another matter entirely. In fact it is a violation of SEC regulations and a federal crime.


You might think that separating out “bad” carbon emitters from the rest of a stock or bond portfolio is a simple matter. So called “ethical investors” refrain from owning securities in alcohol, tobacco and firearms firms. Similarly investors should be able to eliminate oil, gas and coal stocks from their portfolios. For instance, N.Y. State’s main pension fund, with assets of $268 billion, is considering for disposal the less than $1 billion invested in shale and oil sands projects. This is a fairly simple, straightforward decision, in or out, and it won’t make much difference to overall performance given the fund’s size. So what is the big deal?


A recent article by four fund managers and a finance professor (“Decarbonizing Everything”, Financial Analysts Journal, vol. 77, no.3) attempted to quantify carbon intensity. The authors came up with three ways to evaluate the direct carbon emissions of a company. First they measured the total direct corporate carbon output of the company. Second, they took the previous measurement and added the CO2 footprint of its suppliers and the users of the product it produces. Finally, a third measure was created based on Wall Street analysts’ opinions. Imagine the difficulty of putting together these disparate measures on a consistent basis. It is not surprising to learn these three evaluative criteria did not produce consistent results. The authors concluded that “significant progress needs to be made in the measurement and disclosure of … emissions…” This portends a lot of confusion before the standards settle down.


So, what are we getting at? First, the fossil fuel industry broadly, and this includes utilities as well, needs to recognize that measurement of carbon emissions will become a big business, akin to the bond ratings business of Moody’s or S&P. Second, these measurements, we believe, are likely to extend beyond the fossil fuel business. This means users of fossil fuels as well as producers may soon find themselves under more financial pressure to rapidly cut emissions or pay higher pollution related taxes. We already see the outline here with increasing public pressure on corporate polluters and an increasing receptivity of politicians to take action. Eventually public pressure is likely to mount such that fewer and fewer business leaders will want to appear on the environmental activists' equivalent of the FBI’s most wanted list. Institutional investors with fiduciary responsibilities will not want to belatedly explain their reluctance to part with energy investments despite it being obvious (in hindsight) those investments were in peril. Once this becomes a social movement, economics will become less important in decision making.


In short, investors have slowly begun a serious examination of carbon emissions. This quest, if pursued consistently, will take them beyond the fossil fuel and utilities industry. And in doing so this will likely involve more industries that can change their spots so to speak and become “green”. Something which the fossil fuel industries cannot do easily if at all.


Ultimately what will a higher carbon emissions score mean for business, however it may be calculated? With an increasing realization regarding the environmental harm caused by various emissions, polluters will likely pay a higher cost of capital. The growing threat of environmentalist lawsuits or onerous government regulation serve to elevate underlying business risk. All things being equal (which they seldom are) elevated business risk requires as an offset with the reduction in financial risk, i.e. debt levels to maintain the same overall risk profile. However companies in the midst of major transitions are often voracious consumers of debt as they try to borrow and spend their way to a more prosperous future. In the interim, though, this strategy could result in lower stock prices and shareholder discontent.


By Leonard Hyman and William Tilles for Oilprice.com


More Top Reads From Oilprice.com:


https://oilprice.com/Energy/Energy-General/Investors-Are-Increasingly-Aware-Of-Carbon-Intensity.html&ct=ga&cd=CAIyGjk5YzNmM2Y0NmU2Yjk4MTk6Y29tOmVuOkdC&usg=AFQjCNHFkOclnJ_nPxNeq5e3J0-HHv-oV

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BMW Orders Up $24 Billion of Batteries as EV Demand Grows

(Bloomberg) -- BMW AG has boosted orders for battery cells to keep pace with accelerating demand for electric cars that made up more than 11% of deliveries during the half of the year.


The German carmaker now has contracts for more than 20 billion euros ($23.8 billion) of batteries, up from 12 billion euros previously, Chief Executive Officer Oliver Zipse said in an interview. The cells are destined for i4 sedans, iX sport utility vehicles and other models BMW is producing through 2024. The company plans to start switching to a new generation of batteries the following year.


“We’re following the market,” Zipse said. “The first half has shown that we’re growing and gaining market share. We’re right in the middle of electrification.”


Carmakers are reeling from a crippling shortage of semiconductors that’s put the industry on high alert to identify other vulnerabilities in their supply chains. Access to enough battery cells and raw materials like cobalt and nickel will be critical to established carmakers’ electric transformations. EV leader Tesla Inc. has gone so far as to clinch metal-supply deals with miners.


BMW’s increased cell orders are spread across China’s Contemporary Amperex Technology Co. Ltd. and EVE Energy Co., South Korea’s Samsung SDI Co. and Sweden’s Northvolt AB.


CATL shares rose as much as 6.5% on Monday, while Shenzhen-traded EVE Energy advanced by a similar amount.


While BMW has readied a response to growing EV sales, it’s continued to be constrained by the dearth of semiconductors. Last month, the company predicted the situation would worsen through the end of the year.


“We said some weeks ago that the second half would be more difficult, and that’s what we’re seeing now,” Zipse said. “It’s more difficult and the problem is here to stay for many months.”


https://finance.yahoo.com/news/bmw-orders-24-billion-worth-054317027.html

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Minerals Resources offloads $244m stake in Pilbara Minerals

Perth-based mining services company Minerals Resources has generated $244m (A$328m) from the divestiture of its 5.4% stake in Australian lithium miner Pilbara Minerals.


The stake was offered to institutional investors through an accelerated block trade.


Minerals Resources plans to apply the proceeds to its capital expenditure programme.


The company purchased the stake in October 2016 as part of an agreement to waive offtake rights and a royalty held over Pilbara Minerals’ Pilgangoora project. At that time, the stake was valued at $37m (A$50m).


In a statement, Minerals Resources said that it is ‘delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora but believes it is time to redirect this investment into the company’s own growth projects, including in the hard-rock lithium and iron ore sectors’.


In a separate statement, Pilbara Minerals announced a 39% growth in the measured, indicated and inferred resource estimate at its flagship 100%-owned Pilgangoora Lithium-Tantalum Project in Pilbara, Western Australia.


The current estimate is 308.9 million tonnes (Mt), grading 1.14% lithium oxide and 105 parts per million tantalum pentoxide, with 3.5Mt of lithium oxide and 71.7 million pounds (Mlb) of tantalum pentoxide.


The company also announced a 59% increase in total measured and indicated resource to 210.2Mt, grading 1.17% lithium oxide, 103 parts per million tantalum pentoxide and 0.56% ferric oxide, with 2.46Mt of lithium oxide and 47.7-Mlb of tantalum pentoxide.


The change comes after the company discovered new pegmatite domains and integrated the Ngungaju Resource.


Pilbara Minerals managing director and CEO Ken Brinsden said: “The scale of the endowment is quite remarkable, with the integration of the adjoining Ngungaju Resource, combined with highly successful development and drilling programmes, taking our resource inventory well and truly to the next level.


“We are looking forward to completing an updated ore reserve next month that will underpin operations for many decades to come. Against the backdrop of surging global demand for lithium raw materials, Pilgangoora is incredibly well-positioned to play a pivotal role in the accelerating global energy transformation.”


https://www.mining-technology.com/news/minerals-resources-pilbara-minerals/

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Hyundai shipyard launches joint project to develop liquefied hydrogen fuel tank for ships

SEOUL -- South Korea's Hyundai shipbuilding group launched a joint project to develop a liquefied hydrogen fuel tank for ships. The project aims to test-produce a fuel tank for small ships by the end of this year and before embarking on the development of tanks for large vessels. 

The advantage of liquefied hydrogen is its high density compared to compressed gas, which means that more energy can be contained in a given volume for easy transportation.The project involves Korea Shipbuilding & Offshore Engineering (KSOE) affiliated with the Hyundai shipbuilding group, the Korea Research Institute of Ships and Ocean Engineering (KRISO), South Korea's steel group POSCO, and Hylium Industries, a developer of hydrogen technology solutions. 

The shipbuilding group has unveiled a new business roadmap to establish a hydrogen value chain by 2030 and develop hydrogen transport ships and create vessels with hydrogen fuel propulsion systems.KSOE is incharge of designing a dual structure to minimize natural vaporization of hydrogen by increasing vacuum insulation performance. POSCO will developed stainless steel for storing and transporting liquid hydrogen. 

Hyrium is responsible for manufacturing tanks. KRISO will support safety research.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. The liquefaction of hydrogen requires cooling to a temperature of minus 253 degrees Celsius and subsequent storage in cryogenic containers.Liquid hydrogen is essential in a government campaign to expand the use of fuel cells. In May, Korea Gas Corp. (KOGAS) tied up with GS Caltex to establish a hydrogen value chain and build a liquid hydrogen plant with an annual production capacity of 10,000 tons by using waste cold energy generated from the regasification of liquefied natural gas (LNG). 

The plant would be completed at the idle site of an LNG base in December 2024.

http://www.ajudaily.com/view/20210906151710664&ct=ga&cd=CAIyHGI5MGFmOTE0YWZjMDNhOTA6Y28udWs6ZW46R0I&usg=AFQjCNGtRlAg_mcdX1OZokXYcFRp63kEP

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2G Energy : lifts total operating revenue to EUR 63.9 million in Q2

DGAP-News: 2G Energy AG / Key word(s): Half Year Results


06.09.2021 / 08:30


The issuer is solely responsible for the content of this announcement.


2G Energy AG lifts total operating revenue to EUR 63.9 million in Q2


- H1 net sales increase to EUR 106.9 million (H1 2020: EUR 85.6 million); H1 total operating revenue amounts to EUR 111.5 million (H1 2020: EUR 115.5 million)


- EBIT at previous year's level of EUR 2.3 million


- Inventories significantly expanded to safeguard production (+29%), liquidity nevertheless increased


Heek, September 6, 2021 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, boosted its net sales by EUR 21.3 million to EUR 106.9 million in the first half of 2021 (+24.9 %), as already reported in the corporate news release of August 26. HJS Motoren GmbH (HJS), which was fully consolidated for the first time, contributed EUR 4.1 million to this sales growth.


Coronavirus and bottlenecks on the procurement side characterize first half of the year




https://www.marketscreener.com/quote/stock/2G-ENERGY-AG-643228/news/2G-Energy-lifts-total-operating-revenue-to-EUR-63-9-million-in-Q2-36353727/&ct=ga&cd=CAIyGjQ0ZmVjZGMyM2Q2OGNiYTk6Y29tOmVuOkdC&usg=AFQjCNERy73Twy30UA1HLcPd4SGcMV6A_

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Associate Feature: Why is floating wind good for Scotland?

Associate Feature: Why is floating wind good for Scotland?


RWE’s extensive experience in deploying offshore wind has given us an excellent understanding of what is needed to facilitate new technologies, alongside opportunities to invest in people and communities. But what really excites us are the opportunities that new floating wind technology presents for Scotland.


Our ambition is to safely develop, build and operate cost-competitive, commercial-scale projects around the world. To achieve this we are implementing a world-class capability development programme, including extensive supply chain engagement, participation in leading joint industry projects and investment in three high-profile demonstration projects.


Through our involvement in the three floating demonstration projects, we are already building a strong knowledge base which can be the stepping stone to delivering future floating wind projects off the Scottish coast.


Scotland is surrounded by deep waters and will play a key role in helping the UK meet its renewable energy targets. Floating technology is necessary to deploy offshore wind in these deeper waters. The ScotWind seabed leasing process allows developers to make a start in delivering commercial scale floating wind, providing the perfect vehicle for the development of this technology.


While floating wind uses the same turbines as conventional ‘seabed-fixed’ offshore wind they are deployed on top of floating structures that are secured to the seabed with mooring lines and anchors. Electricity is transmitted via subsea cables.


RWE’s floating wind demonstrator portfolio


The demonstrator projects are providing unique insights into the particular challenges and opportunities of different structure types, materials, mooring systems and installation methodologies. Lessons learnt will enable us to reduce the cost and risk of our future commercialscale projects.


Identifying the materials required to construct commercial-scale floating projects has led us to investigate specific opportunities for the Scottish supply chain, including through our collaborative research into foundations for floating wind installations.


Manufacture of concrete foundations could have the biggest supply chain benefit in terms of Scottish content for floating wind projects. In recent years, the Scottish engineering supply chain has been an industry leader, delivering oil and gas structures for the North Sea, as well as exporting technical expertise to markets around the world.


Production of floating wind concrete foundations has the potential to build on this legacy. For example, one concrete foundation for a 15MW floating turbine would have a mass in excess of 10,000 tonnes, and with a 500MW project needing more than 30 of them, offering an important opportunity for the local supply chain.


To that end we are working with Offshore Renewable Energy (ORE) Catapult’s Floating Offshore Wind Centre of Excellence to understand the scale of this potential and how it might be unlocked.


Scotland is possibly unique in being an established offshore wind market that is also offering sites with depths suitable for deployment of floating wind. The ScotWind seabed leasing process could establish Scotland as a global leader in floating wind and presents a real opportunity for the Scottish supply chain, both domestically and in export markets.


The prospects of a greater proportion of UK offshore wind projects being facilitated in Scottish Waters provides opportunity for Scotland to get its fair share of the 60 per cent UK local content ambitions, as set out in the Offshore Wind Sector Deal.


TetraSpar Demonstrator (Norway) COD 2021: working in partnership with Stiesdal Offshore Technologies, Shell and TEPCO to deploy a tubular steel structure with a suspended keel.



https://www.holyrood.com/comment/view,associate-feature-why-is-floating-wind-good-for-scotland&ct=ga&cd=CAIyGjNjYWMyNDU1M2YwNTJmOWE6Y29tOmVuOkdC&usg=AFQjCNEBdEb1IL_xd-IyqdYxM4pNFE7Tr

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Australian Bauxite says planned mine 'can supply for many years'

A proposed new Tasmanian mine can supply bauxite for many years, the proponent says. Australian Baxite Limited (ABx) said a mining lease application for its large Fingal Rail deposit near Campbell Town was "being progressed". In its half-yearly report for the period to June 30, it said Fingal Rail could supply cement-grade bauxite. "Expressions of interest from Indian companies for large tonnage sales which were temporarily subdued due to COVID restrictions in India are now being reactivated," the Sydney-headquartered company chaired by former Tasmanian Labor premier Paul Lennon said. Fingal Rail is near the company's first mine, Bald Hill. The company also has bauxite tenements in New South Wales and Queensland. It gained an exploration permit for the Binjour Plateau, 115 kilometres inland from Bundaberg, in July. 

A mining lease application for its Sunrise Bauxite Project at Binjour was making progress. Sunrise development costs estimated at $15 million would be fully funded by the company's marketing partner, Indian-based Rawmin Mining, subject to due diligence once travel restrictions were lifted. "Legal, banking and commercial arrangements for the Rawmin-ABx joint ventures for the Sunrise Bauxite Project and the Bundaberg Port facility are proceeding, prior to an application for approvals by the Foreign Investment Review Board," Australian Bauxite said. Sunrise was designed to sell 500,000 tonnes of gibbsite-rich trihydrate bauxite per year. Australian Bauxite is also exploring for rare earth elements in Tasmania's North-East. 

"ABx has discovered rare earth element (REE) mineralisation at its bauxite tenements across Northern Tasmania that are enriched in the strategically important REE metals neodymium, praseodymium, terbium and dysprosium, which are the main components of super-magnets that are needed in electric vehicles, wind turbines, smart phones and military electronics," it said. Meanwhile, 87 per cent-owned subsidiary Alcore continued working towards potential production of aluminium fluoride at Bell Bay. Aluminium fluoride is needed by aluminium smelters.

https://www.examiner.com.au/story/7418294/planned-tasmanian-mine-can-supply-for-many-years/%3Fcs%3D12&ct=ga&cd=CAIyGjE0ZWYzM2IyYjQyY2VlNzA6Y29tOmVuOkdC&usg=AFQjCNENYOlG3qQrv2unQXMkUj0vNyl5z

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Electronic control module acts as brain of EVs, says Andy Lee, Foxtron president

Electronic control module acts as brain of EVs, says Andy Lee, Foxtron president


Electric power, batteries, and the electronic control module are the three frameworks of electric vehicles (EVs). Having an efficient integration of the three systems is crucial to EV development, according to Andy Lee, president for Foxtron Vehicle Technologies, a new member of the Foxconn Group.


Electric power motors for EVs replace engines matched with gearboxes. MCUs (motor control units) replace ECUs (engine control units) to provide efficiency in overall driving. Batteries plus BMS (battery management system) replace oil tanks for energy efficiency, Lee said.


In addition to MCUs and BMS, VCUs (vehicle control units) is another element in the electronic control module, which is used for coordinating MCUs and BMS to control power and realize optimal dynamic overall performance for EVs, Lee noted.


Technological advancement in power efficiency


In terms of technological development, electric power system focuses on efficiency and efficacy of power (acceleration, maximum speeds), power density and rotating speed. The main technological trends are mainly the design that integrates motors, control units, gearboxes, and other components of the driving system to reach the best performance-cost ratio, Lee indicated.


For example, flat wire winding technology can reduce energy loss in transferring energy and increase power density; 2-speed reducers can enhance the smooth output of power and hike efficiency in using energy. Low-rare-earth magnet motors or magnet-free models, using inductance technology to transfer power to rotors in place of the magnet, can reduce cost and hike efficiency. Adoption of 800V SiC power semiconductors for controllers can meet desired high power and low loss.


For battery systems, the technological development focuses on low production cost, high energy density, fast power charging, and management for heat dissipation, Lee said. For example, R&D in decreasing content ratio for cobalt and increase that for nickel aims to reduce the use of cobalt, for it is a precious metal. R&D of batteries with high nickel content matched with SiC composite-based anodes, solid-state batteries, lithium-air batteries as well as the use of cell-to-pack and cell-to-chassis methods to hold more cells in space of the same size are intended to hike energy density, Lee noted.


For common power of chargers of 100-150kW, 30-minute charging can increase power storage of batteries from 10% to 80%, Lee said. In order to hike charging efficiency, an increase in voltage of charging systems from 400V to 800V can shorten charging time to 5-10 minutes, Lee indicated.


BMS is used to real-time monitor the operation of batteries to avoid spontaneous combustion arising from too high working temperatures, Lee noted. The number of times that a battery charges and discharges electricity is related to its performance. The higher number of times that batteries can charges and discharges, the longer the service life of the batteries can have, said Lee.


So far, no single battery technology solution can meet all of the aforementioned requirements for functions of batteries and operational efficiency, Lee indicated. The technological advancement of batteries will be the key to the electric vehicle industry


Future trends


In line with the development of multiple functions and multiplexing needs, progressive technological development for electronic control module consists of:


(1) Centralized operation of and management for functions: Automotive electrical/electronic architecture is evolving from a distributed type toward a centralized type to cope with complicated control logic and communication network.


(2) Functional security: From design to execution of functions, hardware and software have to comply with the standards concerned.


(3) Upgrading of OTA (over the air): Along with the development of IoV (Internet of vehicle) and software-defined vehicles, the system efficiency of cars can be increased and new functions can be added via OTA.


The electronic control unit is like the brain of the EVs that completely connects the power system of a car with other key systems of it, Lee noted. In the future, automotive electrical/electronic architecture will be developed into centralized computing as well as distributed and localized sensing and driving. By virtue of design in centralized computing, the concept of software-defined vehicles is expected to be realized in the large-scale production of EVs in the near future.


Foxtron Vehicle Technologies president Andy Lee


https://www.digitimes.com/news/a20210901PD207.html&ct=ga&cd=CAIyGjE0ZWYzM2IyYjQyY2VlNzA6Y29tOmVuOkdC&usg=AFQjCNG0iVtjrRCZ5gJPo8kMxV1Qhr5UD

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Government investigates development of renewable hydrogen facility at Townsville

North Queenslanders could be shipping 120,000 tonnes of renewable hydrogen to South Korea in the next decade with the Port of Townsville and Ark Energy signing a Memorandum of Understanding (MoU) today.


Minister for Energy, Renewables and Hydrogen Mick de Brenni said a feasibility study will investigate the development of a renewable hydrogen facility focused on the transport industry at Sun Metals' zinc refinery in Townsville, along with hydrogen export facilities at the Port of Townsville.


"We've backed Sun Metals with a $5 million Hydrogen Industry Development Fund grant to kickstart hydrogen production in the north," he said.


"Now, through partnerships like this one, Queensland hydrogen will help decarbonise the world and create decent, secure jobs for regional Queenslanders.


"Our key strategic advantage in Queensland is our State-owned ports."


Government Hydrogen Champion and member for Mundingburra Les Walker said it was a major step to developing a growing industry for Townsville.


"There are potentially thousands of jobs in the hydrogen industry and Townsville is perfectly placed to take advantage of this," Mr Walker said.


Also read: Townsville Enterprise take North West trip


"Already we've seen Ark Energy's SunHQ hydrogen hub receive a grant through the Palaszczuk Government's Hydrogen Industry Development Fund last year to produce renewable hydrogen in Townsville.


"In April, the Port of Townsville signed a MOU with Origin Energy to facilitate hydrogen exports to Japan and today's agreement with Ark Energy is another exciting step to developing a local hydrogen supply chain and the jobs that will flow from it."


The initial goal is to build North Queensland's domestic hydrogen economy by supporting fleet owners to transition away from diesel to zero emission hydrogen fuel cell commercial vehicles, which can be refuelled at SunHQ.


"Ultimately our goal is to export green hydrogen to customers in Asia starting with our parent company in South Korea whose hydrogen demand could be as high as 200,000 tonnes per annum," Ark Energy Chief Executive Officer Daniel Kim


"We believe that Townsville has the potential to become a major global hub for hydrogen exports. The MOU with the Port of Townsville is an important step in our journey to investigate this exciting export opportunity, which has the potential to transform the regional economy of North Queensland."


Port of Townsville chief executive officer Ranee Crosby said Townsville, with a deep-water port and proximity to Asia, has a strategic edge to become a global hub for producing and exporting hydrogen - the energy of the future.


"This is another exciting renewable energy project for the Port as green hydrogen becomes one of the most sought-after energy products on the world market," she said.


"We believe Townsville is well placed to be at the forefront of this energy revolution, which will also boost our economic development, create new jobs and substantially reduce our carbon emissions.


"We recently released our Port Vision 2050 - our roadmap for the next 30 years - which has a strong emphasis on action for climate change.


"Facilitating the production, usage and export of green hydrogen is one of the Port's strategic goals."


https://www.northqueenslandregister.com.au/story/7419631/north-queenslands-hydrogen-future-closer-to-reality/%3Fcs%3D4784&ct=ga&cd=CAIyGjE5OTUwNmIwZjRlMjQ3NWY6Y29tOmVuOkdC&usg=AFQjCNFMPjwXoC0gcytkk8JBKKYVqnRgz

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UGI and Global Common Energy Add a Second Renewable Natural Gas Project in Upstate New York

WYOMISSING, Pa.--(BUSINESS WIRE)--Cayuga RNG Holdings, LLC (“Cayuga RNG”) announced today that it has entered into an agreement to develop its second project to produce renewable natural gas (“RNG”) in upstate New York. This is in addition to the previously announced Spruce Haven Farm initiative. Cayuga RNG is a joint venture of UGI Energy Services, LLC (“UGIES”), a subsidiary of UGI Corporation (NYSE: UGI), and Global Common Energy, LLC (“GCE”).


As previously announced, Cayuga RNG’s first project is being developed at the Spruce Haven Farm (“Spruce Haven”), located in Cayuga County in the Finger Lakes region of New York. The project incorporates an existing anaerobic digester that generates biogas, which is used to produce renewable electricity, and is expected to be completed in the second half of calendar year 2022. Cayuga RNG contracted with Martin Construction Resource, LLC, an industry-leading supplier of RNG equipment, for the gas upgrading equipment at Spruce Haven.


Cayuga RNG’s second project will be located at Allen Farms, which is approximately five miles from Spruce Haven. Allen Farms has contracted with Cayuga RNG to supply dairy waste that will serve as the feedstock for renewable natural gas. The project will include the construction of an anaerobic digester and a combined heat and power project. Once completed in the second half of calendar 2022, the project is expected to produce 85 million cubic feet of environmentally friendly RNG each year. Cayuga RNG is actively pursuing several other projects in the region. GHI Energy, a UGIES subsidiary, will be the exclusive off-taker and marketer of RNG for Cayuga RNG.


“We are very pleased with our expanding opportunities in the Finger Lakes region of New York,” said Robert F. Beard, Executive Vice President, Natural Gas. “Our growing investment in Cayuga RNG demonstrates UGI’s continuing commitment to the development of environmentally responsible energy sources and is consistent with our stated goal of significantly reducing greenhouse gas emissions. Overall, this brings UGI’s total commitment to renewable natural gas projects to over $100 million.”


About UGI Corporation


UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the Mid-Atlantic region of the United States, California, and the District of Columbia and internationally in France, Belgium, the Netherlands and the UK.


Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.


About GCE


GCE designs, develops, owns and operates various energy projects, including utility scale power plants, renewable fuels projects, microgrids, and on-site generation projects. GCE establishes Strategic Energy Partnerships with our clients to design and implement energy projects that meet their business objectives. GCE has a broad range of experience in all aspects of energy project design, development and financing. GCE has performed innovative feasibility studies and project design; negotiated project agreements needed to enable financing, including complex power purchase agreements (PPAs); engineering, procurement, and construction (EPC) contracts; fuel supply agreements; and secured complex environmental permits in challenging regulatory environments. GCE also has extensive experience developing financial models and securing project financing.


Comprehensive information about GCE is available on the Internet at http://globalcommon.com/


About Spruce Haven Farm


Spruce Haven, a family farm founded in 1987 by Doug and Janet Young, along with Janet’s father, Dave Camp, and currently operates with nearly 2,000 cows and 1,700 heifers.


Spruce Haven works toward responsible and sustainable farming, acting as a research and development center for the dairy industry. The research at Spruce Haven Farm has contributed to products improving dairy performance globally. Spruce Haven also works to improve the lives of its employees and families both in their neighborhood and in Guatemala.


See their website http://pursuehappiness.farm for details of their goals and progress.


About Allen Farms


Allen Farms, established in the early 1950s, is owned and operated by Duane Allen and his brother Gary Allen. The Allen Farms facility in Scipio, New York currently operates with approximately 3,000 cows and 2,000 heifers.


Allen Farms advocates for land stewardship and resource conservation. They appreciate the opportunity to contribute to environmentally attractive energy development and believe that their RNG project will demonstrate how larger dairy farms can benefit both their employee families and many others through their small contribution to reduction of atmospheric methane impacts.


https://www.businesswire.com/news/home/20210907005130/en/UGI-and-Global-Common-Energy-Add-a-Second-Renewable-Natural-Gas-Project-in-Upstate-New-York&ct=ga&cd=CAIyGjQ0ZmVjZGMyM2Q2OGNiYTk6Y29tOmVuOkdC&usg=AFQjCNGZ6dne7VtlaB_5ek_EzxbPgADVv

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World’s ten largest lead mines in 2020

Here are the ten largest lead mines by production across the world in 2020, according to GlobalData’s mining database.


1. Yinshan Mine


The Yinshan Mine is a surface mine situated in Jiangxi, China. Owned by Jiangxi Copper, the greenfield mine produced an estimated 322.616 thousand tonnes of lead in 2020. The mine will operate until 2069.


2. Mount Isa Zinc Mine


Located in Queensland, Australia, the Mount Isa Zinc Mine is owned by Glencore Plc. The surface and underground mine produced an estimated 161.9 thousand tonnes of lead in 2020. The mine will operate until 2029.


3. Castellanos Project


The Castellanos Project is a surface mine located in Pinar del Rio, Cuba. Owned by GeoMinera, the greenfield mine produced an estimated 120.085 thousand tonnes of lead in 2020. The mine will operate until 2039.


4. Cannington Mine


Owned by South32, the Cannington Mine is an underground mine situated in Queensland, Australia. The greenfield mine produced an estimated 110.4 thousand tonnes of lead in 2020. The expected mine closure date is 2031.


5. Red Dog Mine


The Red Dog Mine is a surface mine situated in Alaska, United States. Owned by Teck Resources, the greenfield mine produced an estimated 97.5 thousand tonnes of lead in 2020. The mine is expected to operate until 2032.


6. Plovdiv Mine


The Plovdiv Mine is a surface mine situated in Plovdiv, Bulgaria. Owned by KCM 2000 Group, the greenfield mine produced an estimated 93.945 thousand tonnes of lead in 2020.


7. Fankou Mine


Located in Guangdong, China, the Fankou Mine is owned by Shenzhen Zhongjin Lingnan Nonfemet. The underground mine produced an estimated 92.442 thousand tonnes of lead in 2020. The mine will operate until 2033.


8. Kardzhali Lead and Zinc Mine


The Kardzhali Lead and Zinc Mine is a surface mine located in Kardzhali, Bulgaria. Owned by Harmony 2012, the greenfield mine produced an estimated 92.241 thousand tonnes of lead in 2020.


9. Penasquito Mine


Owned by Newmont, the Penasquito Mine is a surface mine situated in Zacatecas, Mexico. The greenfield mine produced an estimated 81.193 thousand tonnes of lead in 2020. The expected mine closure date is 2032.


10. Sweetwater Mine


The Sweetwater Mine is an underground mine situated in Missouri, United States. Owned by The Renco Group, the brownfield mine produced an estimated 77.179 thousand tonnes of lead in 2020.


Methodology:


This information is drawn from GlobalData’s mines and projects database, which tracks all operating and developing mines and projects globally. Verdict’s parent company GlobalData provides business information to 4,000 of the world’s largest companies.


https://www.mining-technology.com/marketdata/ten-largest-leads-mines-2020/

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World’s ten largest lithium mines in 2020

Here are the ten largest lithium mines by production across the world in 2020, according to GlobalData’s mining database.


1. Pilgangoora Mine


The Pilgangoora Mine is a surface mine situated in Western Australia, Australia. Owned by Pilbara Minerals, the greenfield mine produced an estimated 1.748 mtpa of lithium in 2020. The mine will operate until 2031.


2. Mount Cattlin Mine


Located in Western Australia, Australia, the Mount Cattlin Mine is owned by Galaxy Resources. The surface mine produced an estimated 1.344 mtpa of lithium in 2020. The mine will operate until 2027.


3. Bald Hill Lithium and Tantalum Project


The Bald Hill Lithium and Tantalum Project is a surface mine located in Western Australia, Australia. Owned by Alita Resources, the greenfield mine produced an estimated 0.849 mtpa of lithium in 2020. The mine will operate until 2027.


4. Mibra Mine


Owned by Advanced Metallurgical Group, the Mibra Mine is a surface mine situated in Minas Gerais, Brazil. The greenfield mine produced an estimated 0.754 mtpa of lithium in 2020. The expected mine closure date is 2034.


5. Mount Marion Lithium Project


The Mount Marion Lithium Project is a surface mine situated in Western Australia, Australia. Owned by Mineral Resources, the greenfield mine produced an estimated 0.496 mtpa of lithium in 2020. The mine is expected to operate until 2047.


6. Chaerhan Lake Mine


The Chaerhan Lake Mine is situated in Qinghai, China. Owned by Qinghai Salt Industry, the greenfield mine produced an estimated 0.328 mtpa of lithium in 2020.


7. Pilgangoora Project


Located in Western Australia, Australia, the Pilgangoora Project is owned by Pilbara Minerals. The surface mine produced an estimated 0.311 mtpa of lithium in 2020. The mine will operate until 2060.


8. Jiajika Project


The Jiajika Project is a surface mine located in Sichuan, China. Owned by Chengdu Tianqi Industry Group, the greenfield mine produced an estimated 0.126 mtpa of lithium in 2020.


9. Salar de Atacama Mine


Owned by Sociedad Quimica y Minera de Chile, the Salar de Atacama Mine is a in-situ leaching mine situated in Antofagasta, Chile. The brownfield mine produced an estimated 0.072 mtpa of lithium in 2020. The expected mine closure date is 2030.


10. Greenbushes Lithium Operations


The Greenbushes Lithium Operations is a surface mine situated in Western Australia, Australia. Owned by Chengdu Tianqi Industry Group, the brownfield mine produced an estimated 0.066 mtpa of lithium in 2020. The mine is expected to operate until 2038.


Methodology:


This information is drawn from GlobalData’s mines and projects database, which tracks all operating and developing mines and projects globally. Verdict’s parent company GlobalData provides business information to 4,000 of the world’s largest companies.


https://www.mining-technology.com/marketdata/ten-largest-lithiums-mines-2020-2/

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Northern Minerals spies new heavy rare earths targets

ASX-listed heavy rare earths player Northern Minerals has its sights trained on a new set of prospects at its flagship Browns Range project in WA’s East Kimberley region. The trio of targets were highlighted by preliminary field portable X-ray fluorescence hits the company says point to broad geochemical anomalies that it intends following up with more drilling shortly.


As part of its $10 million exploration campaign this financial year, the Perth-based company’s recently completed reverse circulation drilling program probed the Banshee prospect and a south-east trending corridor from the Dazzler to Quicksilver prospects. It totalled 120 holes for an aggregate drilling coverage of 8,700 metres. The drilling led to “highly anomalous” portable or handheld X-ray fluorescence analyser or “XRF” measurements of the highly crystalline rare earth, yttrium across relatively wide zones at the Cyclops, Rockslider and Banshee prospects, especially at Banshee South and Rockslider.


All three are all located less than 15 kilometres from the Browns Range pilot processing plant. Latest significant preliminary field portable XRF readings indicate the Banshee prospect is more extensive than originally thought, Northern Minerals says. The Banshee, Banshee West and Banshee South prospects are interpreted to all be part of a much broader mineralised heavy rare earth elements system. An infill RC drill program has been planned to vector in on the areas between each of the prospect locations with a view to estimating an inferred mineral resource for the combined Banshee prospects.


Northern Minerals says it has been using its currently adopted method of field portable XRF successfully at Browns Range for the past seven years. The company explains the technique enables a reliable indicator of final total rare earth oxides or “TREO” values to be generated at the drill rig. It uses historical correlations established between portable XRF analyser readings of yttrium and paired assay data for TREO.


Data going back to 2014 suggests final assayed yttrium and TREO strongly correlate to portable XRF yttrium field analysis of RC drill samples at Browns Range, according to Northern Minerals. The field portable XRF results are highly encouraging, and we eagerly await confirmatory TREO assay results. The Browns Range Dome is an amazingly rich, resource filled area that holds the key to Northern Minerals’ current and future growth. Our overall strategy remains to increase the mineral resource and life of mine potential at Browns Range to more than 10 years. This will feed into our feasibility study for a potential commercial-scale heavy rare earth operation at Browns Range.


Follow-up drilling consisting of about 8,000m RC and some diamond holes is either under way or imminent. Northern Minerals produces the heavy rare earth element dysprosium at its $75 million Browns Range pilot plant operation. It is one of the few producers of dysprosium outside of the world’s dominant supplier China, which speak for about 98 per cent of heavy rare earths production globally. The $213 million market-capped heavy rare earths hopeful kicked off production at the trial plant almost three years ago as part of an evaluation of the economic and technical viability of scaling up to a larger-scale development.


An ore sorter, which was installed and commissioned this year, will also be put through its paces at the front end of the pilot plant. Demand for heavy rare earth elements, in particular dysprosium and terbium, continues to be driven by strong growth in the high-performance dysprosium neodymium-iron-boron magnet sector. Applications for the permanent magnets include in the renewable energy, transport electrification, military and high-tech industries. The latest published mineral resource statement for Browns Range tips the scales at 9.24 million tonnes grading an average 0.67 per cent TREO for about 61.9 million kilograms of contained TREO across seven deposits.


Within the overall resource figures sit probable ore reserves of 3.29 million tonnes weighing in at 1.94 million kilograms of dysprosium and 22.3 million kilograms of TREO. Northern Minerals says it is looking to finalise a feasibility study on the potential development of a full-scale beneficiation plant at Browns Range around the middle of next year.


https://thewest.com.au/business/public-companies/northern-minerals-spies-new-heavy-rare-earths-targets-c-3907654&ct=ga&cd=CAIyGjE0ZWYzM2IyYjQyY2VlNzA6Y29tOmVuOkdC&usg=AFQjCNEvUrmQzbifWqEbaUsh3wXzp1PAN

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Sandvik to unveil new battery-powered bolter, simulator and app at MINExpo

Sandvik Mining and Rock Solutions is set to unveil three new underground drilling solutions at MINExpo 2021 in Las Vegas, based around a common theme of electrification, sustainability and digitalisation.


The new products to be unveiled at the show, taking place from September 13-15, include a new battery-powered bolting rig, an accompanying portable training simulator and a new mobile application for enhanced drilling.


The new Sandvik DS412iE (pictured) is a highly automated, productive, battery-electric powered rock bolter for underground mining and tunnelling applications. It is equipped with an electric driveline system and battery package with electric motor for zero emissions while tramming and drilling, thereby reducing thermal load and underground ventilation requirements, Sandvik says.


The rig’s iSeries platform offers various levels of automation for rock support drilling as well as providing component commonality through the 400i drill range. The introduction of Sandvik DS412iE rounds out Sandvik’s first range of battery-electric vehicles for all underground drilling applications, according to the company.


Sandvik Digital Driller™ training simulators provide a compact and flexible solution to safely train underground drill rig operators or maintenance teams, the company says. The latest Digital Driller module is specifically designed to support the new Sandvik DS412iE battery-electric rig, with the new version retaining the key features of being low weight and highly portable, enabling it to be used where it is most needed – on site.


Use of the simulator is estimated to increase annual productivity by 5% due to increased rig availability alone, Sandvik claims. In addition, training costs are reduced by up to 35% through less energy and consumables costs and reduced rig damage.


The new Sandvik DrillConnect mobile application transfers drilling plans – including those created in iSURE® – drilling reports and MySandvik machine data in environments where network coverage is inadequate or not available. Sandvik DrillConnect removes paper-based processes and automates the data transfer between the office and drill rig via a customer’s preferred mobile device. The app also provides easy access to the machine’s troubleshooting and manuals and is designed to be scalable for future development, according to Sandvik. The first version will be compatible with iOS devices, with plans to introduce Android compatibility in future iterations.


Patrick Murphy, President of Underground Drilling at Sandvik Mining and Rock Solutions, said: “Our latest developments are based on the feedback we have received from customers. We have listened to their challenges and are developing solutions that ensure we will continue to lead the industry shift toward a more digitalised and electrified future.”


In addition to the new underground drilling solutions being introduced at MINExpo, a Sandvik DL432i tele-remote operator chair will be on display. Sandvik will also showcase the latest updates to its underground drilling product offering.


https://im-mining.com/2021/09/09/sandvik-to-unveil-new-battery-powered-bolter-simulator-and-app-at-minexpo/

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Hydrogen part of decarbonisation plans: Anglo American

However Stefano Marani, CEO of emerging helium and natural gas producer Renergen, told the event "there isn't one silver bullet that's going to solve the world's energy crisis" according to the Joburg Indaba Twitter feed.


The event was held as major oil and gas companies lead the charge into green hydrogen as the fuel of the future, as Mining Journal columnist Barry FitzGerald noted this week.


Anglo is aiming to be carbon neutral across its operations by 2040.


Its principal market development Fahmida Smith told the event heavy duty hydrogen applications were likely to be highly competitive by 2030 at scale to both low carbon and conventional alternatives and with structured interventions could be competitive as early as 2022, according to the feed.


The company's platinum unit teamed up with Umicore in April to develop PGM-based technology to simplify hydrogen storage and use in fuel cell electric vehicles.


South Africa-based Impala Platinum's refining and marketing group executive Sifiso Sibiya told the event they were "constantly amazed" by the new opportunities hydrogen presented but said there was a need for collaboration, according to Joburg Indaba.


Implats said last week platinum prospects remained muted in the near-term but growing momentum in the development of hydrogen economy boded well for the long-term outlook.


Minerals Council South Africa CEO Roger Baxter said the green hydrogen economy opportunity could be a game-changer for South Africa, which has experienced a decade of low growth.


"As South Africa we haven't been sitting on our hands," he said, adding a hydrogen society roadmap strategy was being developed by the Department of Science and Innovation.


https://www.mining-journal.com/energy-minerals-news/news/1417398/hydrogen-part-of-decarbonisation-plans-anglo-american&ct=ga&cd=CAIyGjA1ZTkzMDgxODdmNmM0NmM6Y29tOmVuOkdC&usg=AFQjCNFMUjGqOVyQIPv1MjUBczWTGR3ul

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POSCO Chem buys stake in Chinese graphite processor

Qingdao Zhongshan New Energy Technology's new plants under construction (Courtesy of POSCO Chemical)


POSCO Chemical Co. has acquired a 13% stake in a Chinese graphite processor as part of the South Korean company's efforts to secure a stable supply of the key anode material used for electric vehicle batteries.


The unit of steel giant POSCO Co. has invested 4.9 billion won ($4.2 million) to buy the stake in Qingdao Zhongshan New Energy Technology Co., which will begin the shipment of spherical graphite to POSCO Chemical from next year.


Qingdao Zhongshan is located in Pingdu in China's eastern province of Shandong. With an annual output of 25,000 tons of spherical graphite, it is part of Haida Group, China's largest graphite mining and processing company.


Spherical graphite is manufactured after undergoing the process of removing impurities from the raw graphite. It is used in the battery anode material, one of the key components of rechargeable batteries


An anode preserves lithium ions when batteries are being charged, and affects the charging speed and lifespan of batteries.


"This investment completed our supply chain of the anode material from the mining and processing to the production of its raw material," said a POSCO Chemical official.


POSCO Chemical's anode plant in Sejong City, South Korea


POSCO Chemical is South Korea's only producer of both cathode and anode materials. It supplies them to the country's three EV battery makers and Ultium Cells, a joint venture between General Motors and LG Energy Solution.


Last month, the company started producing the petroleum pitch, a material used for coating anodes, at home for the first time to reduce its dependence on imports.


In January, it acquired a 15% stake for $7.5 million in Black Rock Mining , an Australia-based mining company that owns the Mahenge graphite mine in Tanzania, Africa.To meet the growing demand for EV batteries, POSCO Chemical plans to boost its anode material capacity by nearly sixfold to 172,000 tons by 2025 from this year's 44,000 tons and to 260,000 tons by 2030, accounting for 13% of its global shipment.Global demand for anode materials is forecast to grow over 22% per year to 2,054,000 tons by 2030 versus 270,000 tons in 2020, according to market tracker SNE Research.The company is aiming to become the world's No. 1 battery materials maker over the next 10 years, its CEO Min Kyungzoon told The Korea Economic Daily in an interview in January.Kyung-min Kang at kkm1026@hankyung.com Yeonhee Kim edited this article.


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Korea silicon anode materials makers to see quantum leap in demand

The global silicon-based anode materials market is gathering momentum as demand is expected to outpace supply on increasing production of electric vehicle batteries used the materials. Daejoo Electronic Materials Co. and other South Korean companies such as POSCO Chemical and Hansol Chemical that commercialized the anode materials are predicted to benefit from the surging demand.US battery materials startup Group14 Technologies on Sept. 7 said it plans to commercialize the silicon-based anode materials by supplying to a British EV maker. The materials industry saw it as a case indicating the global silicon-based anode materials market is about to see a quantum jump.Lithium-ion batteries for EVs consist of four key materials – anode materials, cathode materials, separators and electrolytes. 

Anode materials play the most important role on the battery lifespan. The existing anode materials use graphite, but the silicon-based anode materials combine graphite and silicon that increases the quantity of lithium-ion by up to ten times, allowing quick charging. The anode materials also enable to expand battery capacity, so the industry regarded them as the next generation materials for batteries.Global demand for the anode materials is forecast to grow 70% a year on average by 2025 to reach 3 trillion-4 trillion won ($2.6 billion-$3.4 billion), according to market research companies. 

The silicon anode materials have strong growth potential with its shares in the total anode materials market predicted to rise to 15% in four years from the current 3%.“Currently, Porsche is using the silicon anode materials for the Tycan. But more companies including Volkswagen, GM, Tesla and Apple are expected to use them,” said KB Securities Co.’s analyst Kim Dong-won. “As more EV models with the silicon anode materials are launched, the materials are likely to lead the standardization of batteries in the future.”Demand is expected to exceed supply for the time being, Kim predicted. The silicon-based anode materials are applied as a mixture of 5-10% of existing graphite anode materials currently, but the mixture ratio is forecast to rise to up to 20%, according to Kim. Battery makers are also likely to launch more batteries with the silicon anode from the next year, he added.

The smartphone industry is predicted to use the materials as increasing uses of the 5G mobile phones increased issues with batteries such as insufficient capacity.

The global silicon anode materials market is currently dominated by a few players. China’s BTR New Energy Material Ltd. accounted for 50% of the global market, followed by Japan’s Shin-Etsu Chemical Co. with a 30% market share. In South Korea, Daejoo occupied about 10%, becoming one of the world’s three companies that commercialized the silicon-based anode materials. The company succeeded mass production of high-efficiency silicon composite oxide for the first time in the industry and is selling it as an anode material for EV batteries.

The bullish outlook for the silicon anode materials helped Daejoo’s share price have surged 41% so far this month.“Many companies developed the silicon anode materials, but Daejoo is one of rare companies that mass-produce them,” said a SK Securities’ analyst Yoon Hyuk-jin.

Investors are also keeping an eye on other makers such as POSCO Chemical and Hansol Chemical.“China’s BTR is expected to keep dominating the market in the short term. But in the mid to long term, Korea’s three battery makers will prefer to build vertical integration, helping Korean companies expand market shares, given easier quality control,” KB’s Kim said, referring to LG Energy Solution Ltd., SK Innovation Co. and Samsung SDI. Co.South Korean makers are able to produce hundreds tons of the silicon-based anode materials a year currently, but their capacity is expected to expand to 1,500-3,000 tons from the next year to 2023.Ji-Yeon Sul at sjy@hankyung.com Jongwoo Cheon edited this article.


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Uranium

Iran has enough uranium to build nuclear weapon in less than two weeks, probe finds

Iran could produce a nuclear device in just a few weeks

The appointment of vice president Mohammad Eslami to head Iran's Atomic Energy Organisation (AEOI) emerges just days before a damning report is due to confirm that the regime now has enough enriched uranium to build a nuclear weapon in less than two weeks. And it comes as the problematic withdrawal from Afghanistan has caused US allies and foes alike to question the desire of President Joe Biden’s resolve on the world stage.

During the 1980s Brig Gen Eslami led an Iranian delegation to meet Abdul Qadir Khan, the father of Pakistan’s atomic bomb who ran an extensive smuggling network. And between 2004-07, as director of the Defence Training and Research Institute ‑ part of the Ministry of Defence ‑ he oversaw the development of Iran’s first missile re-entry vehicles and the early stages of the uranium enrichment programme in the early stages. This led to him being placed on a UN Security Council’s sanctions list in 2008. Speaking last night former deputy director general of the International Atomic Energy Agency (IAEA) Oli Heinonen warned the time had come for a new, more robust approach to Iran’s nuclear threat. “Iran is sending a message that it doesn't care what the West may think,” said Heinonen, now with the Stimson Centre think tank. “Moreover, in a couple of days the new IAEA report will be an eye-opener. I predict it will show that stocks of 60 percent enriched uranium and 20 percent enriched uranium, when combined, are enough to produce one nuclear device in just a few weeks - less than two months. "This means Iran has already achieved a kind of immunity.”

He accused France, Germany and the UK ‑ the so-called E3 which are still engaged with the JCPOA Iran nuclear deal ‑ and Biden, who was vice president under Barack Obama when it was brokered, of “living in the past”. “Sadly Biden and Europe are still living in the past. The Joint Comprehensive Plan of Action was based on hope, not fact. It has failed. Iran has moved on,” he said. “Biden has the need to preserve a legacy he was part of. But it is the E3 who will feel the pressure of this new development. After all, this has happened on their watch.” With the US still technically out of the JCPOA, it will be down to the E3 to invoke a so-called ‘snapback’ to reverse the lifting of sanctions agreed under the terms of the deal. “But this is also an opportunity to find a different approach. Iran has no real interest in nuclear weapons, but it does want to end all sanctions," he added. “One way forward would be for the E3 to offer Iran uranium for a peaceful nuclear programme, on condition that it no longer enriches its own. If it complies, it will reap vast economic benefits. If it does not, it will find itself the subject to harder sanctions than before. “Only a tangible bargain like this can hope to result in real change. It would represent a win-win for diplomacy .”

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Toxics in unsafe hands

The reported change of hands of radioactive material in India is a point of concern. It is a direct security threat to everyone in the region. The fact that there is a seething black market for weapon-grade nuclear material underscores the necessity for being extra conscious. Respective states should likewise raise the vigil in this regard. This is why the back to back arrests in India wherein illicit traders were found in possession of toxic substances have sent shivers down the spine. Apart from pointing out at India’s lax arrangements in securing the hazardous material, it has kickstarted a debate as to how and from where such lethal radioactive material has hit the open market.


Pakistan’s raising of flag after recent arrests in Kolkata is not for point-scoring. Suspects were in illegal possession of Californium, which could fetch around $570 million. A few months ago, huge quantities of Uranium were seized. This could be few of the many instances that got limelight, leading to fears of a sleeping cell probably busy in this nefarious activity. New Delhi is in need of assuring the international community that there are no loopholes in its nuclear establishment, and all stockpiles, enriched traces and isotopes are accounted for.


The post-Soviet era is primarily responsible for radioactive material going wayward. There are countries, as well as non-state actors, who want access to such material. It could be for building a crude nuclear device, or indulging in terrorism. So is the case with the demand for fissile materials. From Russia to Libya, and from Chile to Bali, there are reportedly more than 5,000 military nuclear experts and around 2,500 bomb developers who are unemployed, and eager to seal a deal with anyone for a price. This is why proliferation of toxics and radioactive raw material in black market is a threat to international security.


The silence of the world community over this reported pilferage is condemnable. No eyebrows were raised for India. Whereas, had this been reported in Pakistan, Iran or any Arab country, conspiracy theorists would have ruled the roost. India must account for this bizarre trade under its nose.


Published in The Express Tribune, September 5th, 2021.


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Agriculture

INSIGHT-Rats, drought and labour shortages eat into global edible oil recovery

* Rodents relish palm fruits in Malaysia amid labour shortage


* Palm oil prices seen remaining near all-time high


* Dry weather in Canada's canola areas seen curbing output


* High prices to encourage soybean planting in Brazil


By Mei Mei Chu and Naveen Thukral


PERAK, Malaysia/SINGAPORE, Sept 5 (Reuters) - In a sprawling oil palm plantation in the Malaysian state of Perak, watermelon seedlings are sprouting from freshly ploughed earth between palm saplings while rented cows graze in overgrown areas of the estate.


A coronavirus pandemic-induced labour crunch has forced managers of the 2,000-hectare estate in Slim River to find creative ways to upkeep their fields, even as prices of the world's most consumed edible oil are near record highs.


"It is easier to pull out your own teeth than to get new workers now," said estate manager Ravi, who gave his first name only. "I can't find the workers to maintain the fields."


Malaysia, the world's second-largest producer of palm oil, is facing a perfect storm of production headwinds that will likely drag global stocks to their lowest level in five years.


The Southeast Asian country is a microcosm of the difficulties facing producers of various edible oils across several continents, from Canadian canola farmers to Ukranian sunflower growers, as they struggle to meet strong demand.


Global food prices have scaled 10-year highs this year - the Food and Agriculture Organization's (FAO) price index is up more than a third since last summer - due in large part to a surge in the price of vegoils that are vital for both food preparation and as fat in numerous daily staples.


The FAO's global edible oils index is up 91% since last June, and is expected to climb further as economies reopen following COVID-19 lockdowns, boosting food and fuel consumption of edible oils. But producers have been battling a range of impediments, including labour shortages, heatwaves and vermin infestation, that is driving collective stocks of the world's most consumed edible oils - palm, soybean, canola (rapeseed) and sunflowerseed - to their lowest levels in a decade.


MALAYSIAN WOES


In Malaysia, which accounts for around 33% of global palm oil exports, the average yield of palm fruit bunches in Jan-June fell to 7.15 tonnes per hectare from 7.85 a year ago. Malaysian Palm Oil Board data shows a drop in average crude palm oil yields to 1.41 tonnes per hectare, from 1.56 tonnes over the same period last year.


Many plantations were harvesting with two-thirds or less of the required workforce, after government coronavirus restrictions cut off the usual supply of migrant workers from Indonesia and South Asia.


More than half a dozen plantation owners interviewed by Reuters said the lack of workers had forced them to extend their harvesting window from 14 days to as many as 40 days, a change that compromises the quality of the fruit and risks the loss of some parts of the fruit bunches.


"It is especially bad in Sarawak. Some companies are seeing production falling by 50% because of the shortage of harvesters," said a plantation manager, who spoke on condition of anonymity because he was not authorised to speak to the media.


The Slim River estate has delayed replanting and shut its nursery for the first time in 20 years to redeploy workers for harvesting.


Another plantation manager, named Chew, said he was forced to increase wages by 10% to retain workers.


Less manpower to maintain the plantations also means more pests, including rats, moths and bagworms.




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Weekly Cotton Review: Market stability preceded by significant fluctuations

KARACHI: Under the influence of Rate of Promise (Waday Ka Bhao) of New York Cotton the rate of cotton in local market after fluctuation of Rs 1000 per maund was stable.


According to the revised estimates of the Cotton Crop Assessment Committee (CCAC) it is expected that cotton production will be 8.46 million bales.


According to CCAC 18 Lac bales were produced in the country till September 1.


Cotton production in the country will be 150% more as compared to last year's production in September. Rains can affect the cotton crop. Power loom owners were worried about the increasing rates of cotton yarn.


In the local cotton market during the last week textile and spinning mills continued their buying, while ginners also took interest in trading.


The increasing trend in the rate of cotton remained continued for two days in the opening of the week but on Wednesday under the influence of rate of New York Cotton which is very high, it started decreasing and the bearish trend prevailed in the local cotton market. The reason behind increasing trend in the New York Cotton was increasing threat of hurricane which can affect the cotton crop but after the coming of the news that it will not effect cotton crop the bearish trend prevailed in the cotton market.


The local textile and spinning mills also reduced their buying while due to panic ginners started selling their cotton at lower rates. This is the reason that rate of cotton reached at the highest level and then started decreasing. The rate of cotton has decreased by Rs400 to Rs600 per maund. The rate of cotton in Sindh after decreasing from Rs13800 to Rs14000 per maund reached at Rs13450 to Rs13900 per maund. In the same way the rate of cotton in Punjab reached at the highest level of Rs13900 to Rs14450 per maund, and then after decreasing it reached Rs13800 to Rs14000 per maund.


The rate of Phutti also witnessed a decrease of Rs200 to Rs300 per 40kg. Moreover, after the increase in the Rate of Promise (Waday Ka Bhao) of New York Cotton by two American cents the market was stable.


Under the influence of Rate of Promise (Waday Ka Bhao) of New York Cotton the fluctuation of Rs1000 was witnessed in the rate of cotton in local market. Due to the rains in the cotton producing areas of Punjab and Sindh quality of cotton may be effected.


On the other hand, on Thursday evening the USDA weekly export report shows a decline of 57 %. The report had no impact on market. In the same way, there was no impact of the report of the Cotton Crop Assessment Committee (CCAC) on the market which shows decline in the cotton production target by 19.5 percent, i.e., from 10.5 million bales set for 2021-22 to 8.46 million bales, after missing the sowing target by 13.4 percent.


The Cotton production in the country will be 17 Lac ninety one thousand bales till September 1, 2021. Cotton production in the country will be 100% more as compared to last year's production in September 15.


According to the statistics released by Pakistan Cotton Ginners Association till September 1, the cotton production in the country will be 17 Lac ninety one thousand bales. Although, the report the report was not published last year but the report will be compared with the report of September 2019 in which 13 Lac fifty five thousand bales were produced the cotton production is 23 % more and if we compared it with September 2020 the cotton production was 10 Lac thirty five thousand bales which is around 7 Lac thirty five thousands bales more around 70% more as compared to last year.


According to the estimates cotton production will be in between 22 to 23 lLac bales till September 15 which is 150 % more as compared to the last year production.


Chairman Karachi Cotton Brokers Forum Naseem Usman told that the reasons for the decline in cotton production in the country this year is that the sowing of cotton has taken place before its traditional timeframe. Cotton production is; however, still satisfactory.


Weather conditions are also favourable for cotton production and threat of disease is also reduced. The rains had not affected the crop as much as compared to last year. Per acre yield and rate of Phutti has increased.


The rate of cotton in Sindh after fluctuation is in between Rs13500 to Rs14000 per maund. The rate of Phutti is in between Rs5700 to Rs6100 per 40 Kg. The rate of Banola is in between Rs1650 to Rs1750 per maund. The rate of cotton in Punjab is in between Rs13800 to Rs14300 per maund. The rate of Phutti in Punjab is in between Rs5700 to Rs6200 per 40 Kg. The rate of Banola is in between Rs1750 to Rs1800 per maund. The rate of cotton in Balochistan is in between Rs13800 to Rs13900 per maund. The rate of Phutti is in between RS6200 to Rs6900 per 40kg. The rate of Banola is in between Rs1800 to Rs1900 per maund.


The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs150 per maund and closed it at Rs13900 per maund.


Naseem Usman also told that overall bearish trend was witnessed in the international cotton market. The Rate of Promise (Waday Ka Bhao) of New York Cotton after increasing reached at 95 American cents decreased and reached at 92.50 American cents. Later after increasing it reached at 94 American cents. Overall bearish trend was witnessed in the rate of cotton in Brazil and Central Asian States. The bearish trend was witnessed in the rate of cotton in India due to the partial arrival of new cotton crop.


The Cotton Crop Assessment Committee (CCAC) revised downward the cotton production target by 19.5 percent, i.e., from 10.5 million bales set for 2021-22 to 8.46 million bales, after missing the sowing target by 13.4 percent.


A meeting of the CCAC was held on Wednesday, which was chaired by Syed Fakhar Imam, Federal Minister for National Food Security and Research. Representatives of cotton growers, provincial agriculture departments, associations and senior officials of the NFS&R also attended the meeting.


Official sources revealed that a briefing was given to the committee and it was informed that sowing target was set at 2.310 million hectares; however, cotton was sown on 1.871 million hectares i.e., and hence 83.2 percent of the sowing target was achieved.


According to official documents, Punjab cultivated cotton on 1.279 million hectares against the target of 1.610 million hectares, i.e., missing the target by around 21 percent. Sindh was projected to cultivate cotton on 0.640 million hectares, but 93 percent target was achieved, i.e., 0.592 million hectares were cultivated. Khyber-Pakhtunkhwa (KPK) and Balochistan were projected to cultivate cotton on 0.0022 million hectares and 0.070 million hectares, respectively.


Sources revealed that the meeting was informed that after missing the sowing target, Punjab is estimated to produce 4.53 million bales of cotton against the target of 6.07 million bales set for 2021-22. Sindh is projected to produce 3.50 million bales against the target of four million bales. KPK will produce 0.0002 million bales against the target of 0.00417 million bales, while Balochistan is projected to produce 0.43 million bales, which was targeted for 2021-22.


The country is likely to miss its cotton production target


However, an official handout stated that the minister Imam welcomed the participants and thanked their participation and invited them all to share their feedback and recommendations for the development of cotton crop in Pakistan.


Imam was told that the province of Sindh expects production of 3.5 million bales in this season. He was briefed that the climate in this season has been much better than the last season and due to less rainfall overall production is expected to increase. The production of cotton in Punjab is expected to touch 4.5 million bales at an increase of approximately 8.5 percent from last year. Overall cotton production is expected to reach 8.46 million bales.


The minister was briefed that the year 2020 saw 398.6 mm rainfall, which had a devastating impact on the production, whereas, this year the rainfall was 78.6mm, which has improved the prospect of overall production.


Furthermore, he was told that the attack of Mealybug and Whitefly and CLCuV remained significant, which has adversely affected the production of cotton.


The production of cotton has reached the lowest level in the history of Pakistan. The rates of imported cotton are also very high due to which the rate of cotton yarn is almost double. The factory owners were worried because their production cost has doubled.


According to the factory owners, as their production cost has doubled because of the increase in the prices of cotton yarn, resultantly the textile exports have decreased by 11 %. The power loom industry which had came out of the crisis is once again in deep crisis.


Factory owners say the most expensive electricity is the reason for the increase in power loom sector. The price of electricity increases by Rs 1 to Rs 2 per unit every month. When this government came in to power, one electricity unit was of Rs13 which is now reached at Rs 27. Another reason is speculations behind destruction of power loom sector. Power loom owners have demanded from the government to take steps to bring down the prices of electricity and yarn.


Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Saturday said monthly exports of textile have reached to the mark of almost 1.5 billion dollars which is an encouraging sign.


Textile exports during last year's July were 1.272 billion dollars which have now jumped to 1.471 billion dollars, a jump of 15.61 percent, he said.


Mian Zahid Hussain said that local production of cotton should be increased and coupled with some other measures to boost exports.


Talking to the business community, the veteran business leader said that the exports sector also rely on imports to manufacture products whose cost sometimes increases by 35 percent; therefore, import duties on import of raw material should be reduced to boost exports.


He said that cotton production should be enhanced as 49 thousand tonnes of raw cotton has been imported in a month which is hitting the Forex reserves and increasing cost of doing business.


He noted that ease in lockdowns in the US and EU has contributed to enhanced exports which have prompted an increase of 96 percent in import of textile machinery which also reflects confidence of importers.


He suggested controlling hike in value of the dollar, resolve the issue of expansive energy and tackle other issues to improve confidence and exports.


Copyright Business Recorder, 2021


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Drought is a ‘wakeup call’ for the nation’s largest urban and ag water managers

With two dry years in California and another likely to come, urban and agricultural water districts are taking a close look at the practices and infrastructure investments that have paid off so far and what still needs more investment.


Decades of planning have delivered successes this year for the Metropolitan Water District of Southern California, the largest water supplier in the nation—and agricultural districts have taken notice. The water managers have relied on both the Colorado River and State Water Project deliveries to supply drinking water to nearly 20 million residents in Los Angeles and neighboring counties. As both sources have grown less reliable due to droughts and endangered species protections, Metropolitan has invested in water storage, recycling and trading agreements with farmers in the Imperial Valley who hold senior rights to Colorado River water.


One of those investments was Diamond Valley Lake, an off-stream reservoir that began operation in 2000 and has more storage capacity than Lake Havasu in Arizona.


“People looked at it and said, ‘Oh, a $2 billion investment. That's crazy,’” said Adel Hagekhalil, the new general manager for Metropolitan, during a recent event for the Sacramento Press Club. “Now it's saving us.”


With half of the water in Southern California coming from local sources, Metropolitan has also set a goal to go further by cutting imports in half. Hagekhalil is hoping to build “the fourth aqueduct in Southern California”—an umbrella strategy for diversifying the water portfolio by developing more local water supply, conservation and storage flexibility.


Westlands Water District General Manager Tom Birmingham noticed how such investments have led to more resilience to the drought this year.


“We've read that Metropolitan Water District and the agencies that it serves are in pretty good shape this year, despite the fact that this is one of the driest years on record in California,” said Birmingham. “That's because Metropolitan Water District has, over the course of the last three decades, made significant investments in water supply infrastructure.”


He praised the district for improving conveyance on the California Aqueduct as well and said the commitments like this raise fundamental questions over whether the state and nation should make comparable investments in water supply infrastructure for California.


“Chief among those is: Do we want to preserve the viability of agriculture in California?” said Birmingham. “The food is going to come from somewhere.”


Adel Hagekhalil, general manager of the Metropolitan Water District of Southern California While Westlands, the largest agricultural water district in the nation, has made strides in water conservation over the years, the drought is hitting its farmers hard. The district has taken about 100,000 acres of land out of production in recent years in response to contaminated aquifers and reduced supply, and growers are producing more yields with 25% less water than about 30 years ago. Yet the district projects as much as 300,000 of its 540,000 irrigated lands will go fallow this year due to the drought, and it anticipates spending more than $100 million on buying water on the transfer market.


“Even in this critically dry year, because of the cooperation and the efforts being made by water agencies around the state, there's water available for transfer,” said Birmingham, adding that this will also provide for cold water storage in Lake Shasta to benefit salmon.


On top of that, researchers estimate the broader San Joaquin Valley will see as much as 700,000 acres of land permanently fallowed over the next two decades as local agencies implement plans for the Sustainable Groundwater Management Act (SGMA). Birmingham, however, cautioned against seeing SGMA “as all doom and gloom” and said the district perceived it as an opportunity to codify the practices it was already doing to manage groundwater in the subbasin.


The silver lining with the drought, he explained, has been that it has made it “abundantly clear that we have to all work together to address these issues.” This has already been playing out in negotiations over voluntary agreements for exports out of the Sacramento–San Joaquin Delta, which have focused on a comprehensive watershed-wide approach to protecting endangered species.


“We need to take actions and test them to determine whether they're working,” he said. “If they're not, we need to think about what else should we be doing with the resources that we have.”


CDFA Secretary Karen Ross stressed the negotiations have been progressing, despite skepticism from environmental groups.


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“If it were easy, it would have been done a decade ago,” said Ross. “It is very complex, and it really underscores how connected we all are.”


Jennifer Pierre, who is the general manager of the State Water Contractors and has been involved in the negotiations, said she hopes to get more conservation groups on board.


“One of the challenges in the Delta is that everybody has a different vision for how to achieve a shared vision of it,” said Pierre. “And we get stuck.”


Many of those problems boil down to a lack of trust, she explained, which must be overcome to take a risk on new approaches.


“For me, what matters is that we're creating a space to change the trajectory of how we work together and how we learn together and how we use that learning to actually do better,” she said.


Hagekhalil agreed, adding that doing nothing is not an option. He pushed for more state and federal investment in infrastructure to support such goals.


With an $8 billion federal water infrastructure package in the works, Birmingham said a number of projects could benefit from investments. The expansion of San Luis Reservoir, for example, would add about 120,000 more acre-feet of storage. Also high on his list were raising the height of Shasta Dam and building Sites Reservoir, which could have stored millions of additional acre-feet during the 2017 wet year.


Pierre pointed out that several other projects could provide immediate relief for the current drought, such as turf reduction programs for residents, funding smart meters, lining canals and cleaning up contaminated groundwater basins. She also said the state could make investments in buying down water demand and purchasing water for environmental purposes. Mandating a 25% reduction in water use across the state, as former Gov. Jerry Brown did in the last drought, however, would only lead to a negative response, she cautioned.


Hagekhalil said such a mandate could actually hurt his district’s member agencies that depend on recycled water for their supply. He called for more action with infrastructure investment and argued this should be treated as a “Mulholland moment for our future in this state,” invoking the famed water mogul who brokered the first major water deals for Los Angeles.


“I'm just frustrated that we're not talking about big things that we can speak to. We need to stop trying to find excuses not to do it,” said Hagekhalil. “The drought is a wakeup call. And if we don't take advantage of it right now, we have failed.”


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Stable trend on cotton market

KARACHI: The local market on Tuesday remained bearish and trading volume remained satisfactory.


The spot rate remained unchanged at Rs 13900 per maund. The Polyester Fiber was available at Rs 222 per kg. The rate of cotton in Sindh is in between Rs 13500 to Rs 14000 per maund and the rate of cotton in Punjab is in between Rs 13800 to Rs 14100 per maund.


The rate of the new crop of Phutti in Sindh was in between Rs 5500 to Rs 6100 per 40 kg. The rate of Phutti in Punjab is in between Rs 5700 to Rs 6200 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1750 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1800 per maund.


The rate of cotton in Balochistan is Rs 13700 to Rs 13800 per maund. The rate of Phutti in Balochistan is Rs 6300- 6900 per maund.


2200 bales of Sanghar were were sold at Rs 13500 to Rs 13800 per maund, 400 bales of Kotri Kabeer were sold at Rs 13850 per maund, 600 bales of Rohri were sold at Rs 13850 to Rs 13900 per maund, 800 bales of Saleh Pat were sold at Rs 13900 per maund, 2800 bales of Akri were sold at Rs 14000 to Rs 14200 per maund, 200 bales of Tando Adam were sold at Rs 13950 per maund, 2400 bales of Hasil Pur were sold at Rs 13450 to RS 13750 per maund, 600 bales of Toba Tek Singh were sold at Rs 13950 to Rs 14075 per maund, 200 bales of Bahawalpur were sold at Rs 139975 per maund, 1200 bales of Haroonabad were sold at Rs 14000 per maund, 1600 bales of Lodhran were sold Rs 14000 to Rs 14100 per maund, 800 bales of Lodhran were sold at Rs 14050 to Rs 14100 per maund, 400 bales of Bahwal Nagar were sold at Rs 14100 per maund, 1200 bales of Chichawatni were sold at Rs 14000 to Rs 14200 per maund, 1200 bales of Fort Abbas were sold at Rs 14100 to Rs 14200 per maund, 200 bales of Kassowal, 200 bales of Khanewal were sold at Rs 14200 per maund, 1200 bales of Layyah, 200 bales of Mureed Wala were sold at Rs 14050 to Rs 14200 per maund, 2400 bales of Vehari were sold at Rs 14100 to Rs 14200 per maund, 400 bales of Khan Pur were sold at Rs 14300 per maund and 200 bales of Bagho Bahar were sold at Rs 14300 per maund.


The Cotton Crop Assessment Committee (CCAC) has revised downward the cotton production target by 19.5 percent, i.e., from 10.5 million bales set for 2021-22 to 8.46 million bales, after missing the sowing target by 13.4 percent.  According to media reports, the sowing target was set at 2.310 million hectares; however, cotton was sown on 1.871 million hectares. In other words, only 83.2 percent of the sowing target was achieved. This is quite strange in view of the fact that the present government had set intervention price of Rs5000 per 40kg. And this happened after eight years, which should have sufficiently encouraged the growers to invest in crop management and harvest high yields.


It means that the announcement of mere intervention price was not enough to motivate growers towards cotton. The government, in my view, is required to arrange quality inputs for farmers in time. Timely availability of inputs is critical to taking timely decisions. Secondly, the government will also be required to make the items that the farmers need ahead of cotton sowing available at affordable rates.


FAS Mumbai (Post) forecasts market year (MY) 2021/2022 cotton production at 28.3 million (480 lb.) bales on an area of 12.6 million hectares. Planted area has declined due to an extended dry spell (which has shortened the planting window) and greater area shifted to pulses and oilseeds due to better prices. Domestic fiber and cotton yarn prices continue to rise due to lower than anticipated production, a recovery in domestic demand, and robust demand for Indian cotton in foreign markets.


https://www.brecorder.com/news/40118678/stable-trend-on-cotton-market&ct=ga&cd=CAIyGmI4MGQ3MGVjZDQzMTM1ZTI6Y29tOmVuOkdC&usg=AFQjCNG09mAQrtAFI_eOD5DeyLWXHIZUi

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California and National Drought Summary for September 7, 2021, 10 Day Weather Outlook, and California Drought Statistics – 88% in Extreme Drought

Summary

West

For the week, most of the region continued to experience dry conditions, although some residual moisture from Hurricane Nora worked its way into the Southwest leading to some isolated shower activity. On this week’s map, improvements were made in isolated areas of Arizona, New Mexico, and Utah where recent monsoonal rainfall has continued to improve drought conditions on a shorter-term basis. For the monsoon season (to date), some impressive rainfall totals have been observed in areas of southern and central Arizona and New Mexico as well as in areas of Utah. In Arizona, Tucson is currently having its 3rd wettest monsoon season on record with 12.41 inches (as of September 7), Flagstaff 10.35 inches (4th wettest), Payson 13.06 inches (2nd wettest), and Las Cruces, New Mexico 5.06 inches (3rd wettest). Elsewhere in the region, much of California, western Great Basin, Pacific Northwest, and the Northern Rockies have experienced drier-than-normal conditions during the past 90-day period. In Washington, drought and associated precipitation deficits dating back to the springtime, combined with extreme summer heat, have severely impacted the state’s wheat crop which is reportedly had its lowest output since 1973. According to the USDA, the percentage of topsoil rated short to very is as follows: Washington 100%, Oregon 89%, Idaho 75%, Montana 93%, Wyoming 70%, and California 85%. According to the Natural Resources Conservation Service (Sept 1), reservoir storage levels were below normal across all the western states except for Washington state (data not yet available for Montana).


https://goldrushcam.com/sierrasuntimes/index.php/news/local-news/33250-california-and-national-drought-summary-for-september-7-2021-10-day-weather-outlook-and-california-drought-statistics-88-in-extreme-drought&ct=ga&cd=CAIyGjEzNGMxNzRmYjliOTAzZGY6Y29tOmVuOkdC&usg=AFQjCNFfHJgQ9e6NzqicZy3X6ZigD6HAu

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China soybean imports expected to rise in 2021-22

BEIJING, CHINA — After slumping slightly last year, Chinese soybean imports are forecast to increase 3% to a record 101 million tonnes in the 2021-22 marketing year, according to a Global Agricultural Information Network report from the US Department of Agriculture.


The increase is due to China’s growing soybean meal feed use, reduced soybean production and limited imports of rapeseed, according to the report.


Based on surveys conducted by China’s Ministry of Agricultural and Rural Affairs, in the first seven months of 2021, total feed production rose by nearly 20% year-on-year, to 164.9 million tonnes.


“Higher feed production is expected for the remainder of the calendar year 2021 and into 2022 as changes in the livestock and poultry industry drive moderate growth of soybean meal use,” the USDA said in the report.


The report noted that 2021-22 soybean production in China is forecast to decline by 600,000 tonnes as producers opted for increased corn plantings.


“According to industry sources, the sharp increase in corn prices in 2020 and 2021 has increased corn acreage at the expense of soybeans, particularly in the northeast provinces,” the USDA said. “Although both corn and soybean prices increased until the sowing season, the expected return on corn is more than double that of soybeans based on an estimated per unit yield of corn being 3.5 times that of soybeans.”


In 2020-21, China accounted for nearly 60% of the world’s soybean imports and led the world in soybean meal production with 74.4 million tonnes, easily outpacing the United States’ output of 46.3 million tonnes.


https://www.world-grain.com/articles/15809-china-soybean-imports-expected-to-rise-in-2021-22&ct=ga&cd=CAIyGjAwZTg1OTUxODZhNTBjODQ6Y29tOmVuOkdC&usg=AFQjCNGJ2XHlH2tApynhRofi3xXT2EjAO

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Sugar exports seen at record 70 lakh tonnes despite Covid setbacks

Overcoming the Covid-related supply chain challenges, India is seen shipping out a record 70 lakh tonnes (lt) of sugar for the current 2020-21 sugar year ending September. This represents a 17.64 per cent increase over the previous season’s 59.50 lt. This is the second consecutive year that Indian sugar exports are scaling new highs.


Abinash Verma, Director General, Indian Sugar Mills Association (ISMA), said the shipments could cross 70 lt for the sugar year 2020-21. So far, about 66.70 lt has been physically shipped out in the first eleven months (October-August) of the current season against 55.78 lt in the same period last year.


Further, as on September 6, another 2.29 lakh tonnes of sugar is at the ports, either loaded on to vessels or in the godowns waiting for more vessels to arrive. Considering that another 20 days are left in the current season, total exports in the current season could cross 70 lt, ISMA said in a statement.


Unfazed by challenges


Verma told BusinessLine that besides surplus output coupled with robust demand, the Indian exporters and sugar mills’ efficiency to move the cargo during the Covid times overcoming challenges such as shortage of trucks as well as labour and congestion at the ports has enabled the record shipments.


Further, Verma said that a couple of years ago, there was a talk in global trade circles that Indian sugar exports cannot exceed 5 million tonnes due to logistical challenges. “We have proved the world wrong. It has been a big effort from both sugar mills as well as exporters,” he added.


India’s sugar production for 2020-21 season is estimated at 310 lakh tonnes.


Out of the total estimated exports, so far, raw sugar had a higher share of 34.28 lt, followed by 25.66 lt of whites and 1.88 tonnes of refined sugar. Additionally, mills are reported to have delivered about 7.17 lt raw sugar to port-based refineries for refining and exports. The exports, so far, also includes 4.49 lt of shipments done under the MAEQ of 2019-20 sugar season, which was extended till December 31, 2020.


Key markets


Indian sugar is mainly exported to countries such as Indonesia, Afghanistan, Sri Lanka, Somalia, the UAE, China, Saudi Arabia, Sudan among others. Indonesia was the top most destination with 29 per cent share, followed by Afghanistan at 13 per cent of total exports.


Commenting on the outlook for the next season, Verma believes that India will be able to export about 60 lakh tonnes.


Brazilian crop


Currently, the international prices of sugar are at over four year high at around 20 cents per pound. Amid reports of lower sugar production in Brazil in its current sugar season (April,2021 – March,2022), owing to dry weather conditions due to drought followed by incidence of frost, the world prices are expected to remain bullish. It is also reported that Brazil’s next sugar season may also get affected due to the worst-ever drought in Brazil in last 90 years. Due to this, many global agencies, including International Sugar Organisation, have projected a higher sugar deficit to the tune of 4-5 million tonnes in the next 2021-22 SS, starting on October 1, 2021.


Further, sugar production in Thailand is likely to increase in next season as compared to previous years, but still will be lower than its normal production of 14-14.5 million tonnes, by almost 3-3.5 million tonnes. Thailand sugar would come into the market only after January, 2022. This would mean that Indian sugar mills have a good opportunity to export their surplus sugar in the next couple of months up to January 2022, and thereafter till April 2022 before Brazilian sugar comes into the market.


Verma said that many sugar mills have signed forward contracts for export in the upcoming season. “It is therefore believed and expected that Indian sugar mills will use this opportunity and will be able to export to the tune of 60 lakh tonnes during the next season,” he said.


https://www.thehindubusinessline.com/economy/agri-business/sugar-exports-seen-at-record-70-lakh-tonnes-despite-covid-setbacks/article36380151.ece&ct=ga&cd=CAIyGjExOGNkNDQ4MGJmYjFjMzY6Y29tOmVuOkdC&usg=AFQjCNGrOgldIa9ifc9QFpluYWfVnGlMB

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Crypto

What August's record breaking month for crypto flows means for bitcoin

Over the past month, the crypto market has looked like a rising tide for all coins — but data suggest growth across the asset class hasn’t been equal.


Last week, Bitcoin (BTC-USD) breached $50,000 for the second time in two weeks, extending a rally that put a grim sell-off that started in May further in the rear-view mirror. While notable for its volatility, gains in the the largest cryptocurrency may have gotten lost in the swell of rising prices across the entire asset class.


With a majority of decentralized finance and non-fungible token (NFT) trading happening on the Ethereum (ETH-USD) blockchain, the second largest cryptocurrency by market capitalization rose by a third from $2,700 to $3,900, a growth rate 17 percent higher than BTC.


And other blockchain-based currencies such as the third highest valued cryptocurrency, Cardano (ADA-USD) has more than doubled while a newer one, Solana (SOL-USD), has more than tripled in value over the past month. ADA and SOL have continued to notch almost daily all time highs for the past two weeks.


Bitcoin IRA, an investment platform that helps retail investors gain crypto exposure in their retirement accounts, saw “record-breaking inflows” of new accounts over the previous month.


“We broke our record in the first quarter right before Bitcoin ran from $45,000 to $65,000,” the company’s Chief Operating Officer, Chris Kline told Yahoo Finance. “We’re seeing the same pattern happen again. So this past month [August] felt a lot like April, but about twice as big.”


The search for growth


Currently, Bitcoin IRA has close to 120,000 client accounts, with approximately $2 billion in assets on the platform. Although platform's heft doesn’t move the market, the swell of retail investors opening new accounts — especially for tax-advantaged IRA accounts — is an indicator of how curious investors are as they seek more traditional ways to participate in this market.


By rough approximation across all accounts, Kline said his clients hold 43% of their portfolio in bitcoin, 27% in ethereum, and the remaining 30 percent in a mix of other cryptocurrencies. The company offers 10 different cryptocurrencies in total, and is planning to more than double their crypto offerings in the fall.


Story continues


Back in early May when Ethereum started rising to its all-time high above $4,000, the company saw a large influx of swaps or pairing from BTC to ETH. It signaled many of his clients were shifting their portfolios from BTC to ETH.


However, in recent weeks? “Not so much this time,” Kline told Yahoo Finance.


To be sure, there could be a lag. “Retail buyers are looking for percentage growth. While bitcoin reigns supreme, it has relatively stable growth while there is exponential growth happening on ethereum. That’s what really gets their attention,” Kline explained.


Bitcoin's August peak at $50K served as a “key technical and psychological level,” according to Will Clemente, an analyst at crypto mining and hardware broker Blockware Solutions.


Clemente told Yahoo Finance that for the last seven days, bitcoin’s price has remained in what he called a “volatility squeeze.” The idea being that buyers and sellers have balanced each other out, thereby reducing the asset’s typically high volatility.


But the analyst suggested that could be about to change. A volatility squeeze for bitcoin usually takes a week to two weeks to resolve.


“That’s not telling you the direction, it's just telling you that there’s going to be a big move soon,” said Clemente.


Analyzing price action alone remains a dominant, more contested method for predicting buyers and sellers around a cryptocurrency. But Clemente’s specialization, on-chain analysis, has quickly become a crucial tool kit of metrics for investors hoping to gleam some clarity into the nascent asset-class.


Similar to technical analysis, the on-chain technique tries to forecast future moves based on supply and demand. However, it relies on a far larger quantity of data only available for assets operating on publicly available blockchains.


While Clemente cannot predict the price shift of Bitcoin, he pointed to a handful of supply shock ratios, such as the movement of coin supply from speculators to long term holders and the exchange supply ratio, which shows the number of Bitcoins available to buy on exchanges relative to the overall circulating supply.


Each of these metrics continue to rise higher after Bitcoin crested above $50,000, according to Clemente. Historically, supply shocks begin before the Bitcoin price moves upward.


Bitcoin Illiquid Supply (RSI)


David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.


READ MORE:


Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit


https://finance.yahoo.com/news/what-augusts-record-breaking-month-for-crypto-flows-means-for-bitcoin-163906276.html

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Bitcoin As The Digital Gold Has Significant Upward Potential: Miller Opportunity Trust

Bitcoin has been touted as the digital gold in various quarters, and an investment trust now believes the cryptocurrency’s upward potential is massive.


Bitcoin Still Has A Massive Upward Potential


Bitcoin has been one of the leading financial assets in the world over the past decade, delivering thousands of percentages in profits to the early investors. The past few months have seen numerous hedge funds and other institutional investors enter the cryptocurrency market. Their entry marks a new phase for Bitcoin, and some of them believe that it has a huge upward potential.


Miller Opportunity Trust, a fund founded by billionaire investor Bill Miller, believes that Bitcoin as a digital gold still has significant upward potential. The fund discussed its recent exposure to Bitcoin and said it could seek to boost its investment over the next few years.


While talking about its decision to gain exposure to Bitcoin via the Grayscale Bitcoin Trust (GBTC), Miller Opportunity Trust said Bitcoin is the digital gold, and its potential is still massive. Gold’s market cap is over $11 trillion while Bitcoin has just around $11 trillion, with the Bill Miller fund stating that Bitcoin still has a long way to go to catch up to Gold. The firm stated that we are still early in a continuing adoption curve. It warned that Bitcoin will be volatile but it believes the risk-reward for the coin is attractive.


Bill Miller is bullish on Bitcoin, stating that there is no asset in the world that combines Bitcoin’s liquidity with its upside potential. More hedge funds and institutional investors have been entering the cryptocurrency market. Bitcoin and Ethereum are the two most sought-after cryptocurrencies as they remain the market leaders.


Bitcoin Crosses The $50k Mark


Bitcoin has been struggling below the $50k mark in recent weeks but was finally able to settle above that resistance level during the weekend. BTC is up by over 3.5% in the last 24 hours, and it is trading above $51k per coin at the moment.


BTC/USD chart. Source: FXEMPIRE


If the current bullish trend continues, BTC could cross the $55k level over the next few days. Bitcoin (BTC) is closing in on its all-time high price above $64k, and some market analysts are confident it could touch the $100k level this year.



https://finance.yahoo.com/news/bitcoin-digital-gold-significant-upward-111258831.html

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El Salvador's bitcoin move puts best, worst crypto impulses on display: Morning Brief

A country's embrace of bitcoin puts 2 competing crypto visions on display


Tuesday marked what one observer called the “start of a new world,” as El Salvador officially became the first country to accept bitcoin as legal tender.


The eagerly anticipated move is a big test of cryptocurrency's staying power, and foreshadowed what could lie in store for other countries, namely Panama, as more economies adapt to the suddenly hot global cryptocurrency movement.


“I believe this is a threshold moment in the evolution of digital currency and that it ushers in the start of a new world as we can expect more nations, especially those with developing economies, to follow El Salvador’s historic lead,” said Nigel Green, founder and CEO of deVere Group, a financial advisory firm.


Green’s remarks echoed those of Cathie Wood, an irrepressible bull who runs Ark Invest. She's exposed to the crypto market via levered stocks like Coinbase (COIN) and Square (SQ) in her various innovation focused exchange-traded funds (ETFs).


In an interview with Yahoo Finance Live last week, Wood declared that crypto will usher in “a new global monetary system. It's a rules-based monetary policy, which is completely decentralized and therefore is not subject to the whims of policymakers."


She added that crypto is “a hedge against the whims of policymakers, especially in emerging markets.”


Despite El Salvador’s move and Wood’s bullish endorsement, crypto couldn’t quite outrun its reputation as a highly volatile asset. The duality is best encapsulated by what one El Salvadorean entrepreneur told The Wall Street Journal: “My mother believes that bitcoin is a thing of the devil, but bitcoin has a lot of advantages."


Indeed. Quicker than you could say “Chivo”, bitcoin revealed its devilish side, tumbling below $50,000 and swooning over 17% intraday as some long positions got liquidated en masse. El Salvador's electronic wallet also suffered first day glitches that temporarily disabled the technology.


The sell-off also weighed on newcomers like Solana (SOL1-USD) and Cardano (ADA-USD). Both are quickly becoming two of the hottest tickets in crypto investing, as Yahoo Finance’s David Hollerith highlighted earlier this week — but Cardano posted a double-digit drop in Tuesday's whipsaw trade.


In fact, Wood’s comment exposed the central paradox at the heart of Tuesday’s active day in crypto markets. If you’re an investor that embraces digital currency based on its decentralized appeal, is it really constructive to have a central government (especially one with the checkered past of El Salvador’s) act as a major market player?


Bitcoin’s inexplicable reversal also underscored an element that Barry Bannister, Stifel’s chief equity strategist, emphasized on Tuesday. Speaking to Yahoo Finance, he called the digital currency a “speculative asset” that's light years from being a safe-haven like gold (GC=F), the U.S. dollar or the Japanese yen (JPY).


“Bitcoin is an asset that moves with global liquidity,” and waxes and wanes with global money supply growth, which has been declining since March, Bannister explained. He enumerated reasons like a Federal Reserve that may start tapering stimulus, a tightening of monetary policy by China, and a surge in COVID-19 infections that will feed flight-to-safety bids for safe-havens.


“When all of that hits, bitcoin, being a spec asset, is just going to plunge” — perhaps as low as $15,000, he said. ”I think it’s going to be a terrible performer by year-end.”


https://finance.yahoo.com/news/bitcoin-bears-pour-cold-water-on-new-world-ushered-in-by-el-salvador-morning-brief-090719416.html

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Precious Metals

Equinox Gold reports record revenue growth in 5 year review

Equinox Gold has reported record revenue growth over the past five years. The Canadian based gold miner reported a 96,081.2% growth over the period, belying fears of losses due to the impact of the Covid-19 pandemic.


“We had this vision of creating a top 10 or 15 gold mining company in the world and doing it in a five-year period,” said Christian Milau, CEO of Equinox Gold. “We’re not quite there yet, but we’ve come a long way.”


Equinox Gold is a Canada-based mining company. It is engaged in the development and operation of mineral properties, focusing mainly on gold. It has operations including Mesquite Gold Mine in Imperial County, California; Mercedes Gold Mine in Sonora, northern Mexico; and the Fazenda mine located within the Maria Preta mining district in Bahia State, Brazil.


Equinox Gold achieved this growth through a concerted three-step approach: to grow and acquire new mines, develop their mines, and continue exploration for future mine sites. During this period, it set a goal of building one mine per year, which it accomplished. This allowed the company to bolster its portfolio leading to the revenue rise seen.


Milau argues that Equinox’s long-term view of the industry supported this growth. He observed that companies usually adopt a more short-term approach within the gold industry, where assets are turned around quickly for an instant profit.


“We’re not just here to buy assets, flip them, make a bunch and walk away,” said Milau. “We’re here to build a company that’ll last beyond [our] lifetimes.”


In adopting a more long-term approach, Equinox Gold has attracted investments from established resource investors like Beaty and mining billionaire Richard Warke. By partnering with established investors within the industry, Milau said the company was able to find more patient capital and survive the industry lows to benefit from the highs in revenue growth.


https://www.mining-technology.com/news/company-news/equinox-gold-reports-record-revenue-growth-in-5-year-review/

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Antipa Minerals unearths robust gold-copper hits up to 362 metres in Minyari Dome drilling, shares up

The mineral exploration company recorded a 362-metre intersection that more than doubled a previous hit, expanding its 100%-owned precious and base metal asset’s potential.


( ) has recorded further strong gold and copper hits during its 2021 drill program at the Minyari Dome asset in Western Australia’s famed Paterson Province.


A diamond drill and diamond-tail hole contributed more robust gold-copper grades to the annual exploration campaign, with the latter more than doubling a mineralised intersection to 362 metres in length and grading 1.4 g/t gold and 0.16% copper.


Ultimately, the mineral exploration company’s latest assays continue to extend the Minyari 144-square-kilometre project’s potential size and enhance its development opportunity.


Following the encouraging results, Antipa has opted to expand its drill program to 35,000 metres, meaning it can explore some of the asset’s other resource extension and greenfield targets.


Shares were as much as 23.4% higher to A$0.058 with more than 79 million changing hands while Antipa's market cap pre-open was approximately A$147.5 million.


To support revised resource estimate


Antipa Minerals managing director Roger Mason said: “Minyari drill hole 21MYCD0216 demonstrates the capacity of this intrusion-related breccia system to generate strong gold-copper intersections over wide intervals, which will support a revised resource estimate and project development studies for a potential standalone open pit and underground mining operation.


“At Minyari, high-grade gold and/or copper mineralisation has now been intersected along 500 metres of strike, down to 600 metres below the surface and across a horizontal width of up to 275 metres, while mineralisation remains open in several directions.


“The 2021 drill program has been expanded to target resource extension targets, including Minyari East and a number of high-priority greenfields targets, all less than 3 kilometres from the existing Minyari and WACA resources.


“The expanded drill program is expected to be completed in October.”


The results are in


As it advances the 2021 campaign, Antipa has secured assays from 25 reverse circulation drill holes, one diamond tail and one diamond core hole, covering a combined 8,090 metres.


Overall, results to date align with the current mineral resource domains and have added significant additional, high-grade, gold-copper mineralisation immediately to the east and west of the existing resource at Minyari.


The assays, which are targeting both resource definition and extensions to the mineralisation, continue to expand the Minyari resource’s dimensions and advance its development opportunities.


While the results to date represent just 30% of the planned drill program over the Minyari targets, assays have:


Proven multi-element mineralisation exists outside the mineral resource estimate boundary;


Unearthed new high-grade, gold-copper mineralisation at the Minyari East target, extending the mineralisation envelope to around 290 metres;


Confirmed mineralisation is typically linked to sulphide matrixed breccia zones, which are analogous to ( ) and ( , , )’s Havieron asset style of mineralisation; and


Confirmed Minyari’s mineralisation remains open down-plunge, along strike and variously open across strike to the east and/or west.


Gold-copper hits


One of the best intersections from the diamond-tail hole represented a 362-metre hit that more than doubled a previous gold-copper result.


This involved 362 metres at 1.4 g/t gold and 0.16% copper from 230 metres, including 78 metres at 2 g/t gold and 0.28% copper. It also included 47 metres at 2.82 g/t gold and 0.22% copper from 261 metres, including 20 metres at 5.2 g/t gold, 0.4% copper, 1.23 g/t silver and 0.12% cobalt from 272 metres and 5 metres at 12.98 g/t gold, 0.86% copper and 1.17 g/t silver from 277 metres.


Outside of this significant intersection, the diamond-tail also tabled several other high-grade gold hits, with as much as 70.5 g/t gold recorded.


The hole also intersected as much as 3.17% copper and 17.5 g/t silver within a 1-metre hit.


Meanwhile, Antipa’s latest diamond drill hole also returned encouraging assays.


A 66-metre intersection returned 1.28 g/t gold and 0.08% copper from 403 metres, including 2 metres at 22.17 g/t gold, 1.25% copper and 6.85 g/t silver from 466 metres.


Moving ahead


So far, Antipa has completed 27,000 metres of resource infill, extensional and brownfield discovery drilling at Minyari Dome.


Three drill rigs are on site advancing the program, with assays awaited for a further 19,000 metres of exploration.


Based on the results to date, the ASX-lister will expand the program to 35,000 metres to cover other targets of interest.


This includes the Minyari northwestern plunge, the Minyari East target and other extensional and greenfields prospects.


Antipa will continue to update the market as further results come to hand.


https://www.proactiveinvestors.co.uk/companies/news/959436/antipa-minerals-unearths-robust-gold-copper-hits-up-to-362-metres-during-minyari-dome-drilling-959436.html&ct=ga&cd=CAIyGmJiNmYxYzM1NWU0OWM2MzQ6Y29tOmVuOkdC&usg=AFQjCNGTIk74WpdJ-k6E8b8ISYvMney3T

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Gold suffers sharpest daily tumble in a month, settles below $1,800

Gold futures decline Tuesday, with their sharpest daily fall in about a month, pulling prices back below $1,800 as the U.S. dollar strengthened and Treasury yields climbed, weighing on appetite for precious metals.


The drop in prices is a “reaction to dollar strength and rising Treasury yields,” Michael Armbruster, managing partner at Altavest, told MarketWatch.


If the Federal Reserve’s Beige Book report due Wednesday “suggests that the U.S. economy is cooling, then that would be a bullish factor for gold,” he said. For now, “we still like buying gold on dips below $1,800.”


On Tuesday, December gold GCZ21, -1.83% GC00, -1.83% declined by $35.20, or 1.9%, to settle at $1,798.50 an ounce. The drop marked the sharpest one-day percentage and dollar slide for a most-active contract since Aug. 9 and pushed the contract to the lowest settlement since Aug. 26, FactSet data show.


The decline follows a 0.8% rise for bullion last week, with prices settling Friday at their highest since June 16.


The weakness in gold may be a “classic ‘give back’ of an overdone reaction to the [Federal Reserve’s] likely hold stance following a serious ‘miss’ on the August U.S. payroll report,” analysts at Zaner wrote in a note.


U.S. data released Friday showed a lower-than-expected increase in new U.S. jobs in August, prompting prices for the precious metal to rise.


Traders expect a dollar rebound this week said analysts at Zaner. Investment interest in the gold exchange-traded fund remains “very poor,” with total ETF gold holdings at the end of last week 6.8% lower on the year, U.S. Treasury yields jumped Tuesday, and Chinese official gold holdings declined by 0.6% last month versus July, they said.


The dollar, as gauged by the ICE U.S. Dollar Index DXY, +0.46% , was trading at 92.48, up 0.5% in Tuesday dealings. A stronger dollar can make assets priced in the currency, such as gold, less attractive to investors using other currencies.


Meanwhile, benchmark bond yields, which can compete for haven flows against gold, were rising, increasing its appeal when pitted against bullion. The 10-year Treasury note TMUBMUSD10Y, 1.365% was yielding 1.369%, versus 1.322% last Friday. Treasury markets were closed on Monday in observance of U.S. Labor Day.


Trading for gold has come against the backdrop of concerns about the delta variant of the COVID-19, which have supported price moves, and uncertainty about the Federal Reserve’s monetary-policy plans, as the labor-market recovery looks uneven. The fact that easy-money policies have remained in place has helped equity markets rise repeatedly to record highs, undercutting demand for bullion, some strategist argue.


“Gold is finding new interest, but the precious metal is caught between a very confused economic outlook and the relentless new record highs in equities,” wrote Adrian Ash, director of research at BullionVault, in a research report.


Meanwhile, gold imports remain strong in August, with the volume of gold imports reaching the highest levels in the last five months, said Alex Kuptsikevich, senior financial analyst at FxPro.


“The favorable conditions for this were created by high market demand and attractive prices, which also prompted jewelers to increase purchases in advance in anticipation of the upcoming Christmas season,” said Kuptsikevich, in a note.


Meanwhile, silver for December delivery SIZ21, -1.52% settled 43 cents, or 1.7%, lower at $24.37 an ounce.


https://www.marketwatch.com/story/gold-futures-set-for-sharpest-daily-tumble-in-a-month-as-treasury-yields-and-u-s-dollar-rise-11631016789?siteid=yhoof2&yptr=yahoo

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Metal Tiger plc UK Regulatory Announcement: Sandfire A4 Step-Out Drilling Update

LONDON--(BUSINESS WIRE)--


07 September 2021


Metal Tiger plc


("Metal Tiger" or the "Company")


Sandfire A4 Step-Out Drilling Update


Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to provide an update in relation to its investment in Sandfire Resources Limited (“Sandfire”) which contains information relevant to Metal Tiger's 2% uncapped net smelter royalty over circa 8,000km2 of Sandfire's licence holdings in the Kalahari Copper Belt including PL190/2008 (excluding the T3 Motheo Project area), which hosts the A4 deposit. Metal Tiger also has a capped US$2m 2% net smelter royalty over production from the T3 Motheo mine. Sandfire today announced a standout intersection from 439m down-hole of 45m @ 2.2% copper (including 2.1m @ 8.25% Cu) 1.2km south-west of the recently upgraded A4 Mineral Resource.


Highlights:


MO-A4-207D is the first hole to effectively test the axis of the A4 periclinal anticline (“A4 Dome”) interpreted from Airoborne Electromagnetic (AEM) data to the west of the current Mineral Resource.


Interpretation of AEM and airborne magnetic data has highlighted a distinctive structure that potentially continues for 5km along the axis of the A4 Dome, which may link the intersection in MO-A4-207D with similar high-grade vein-hosted mineralisation previously reported up to 1.9km to the east.


Drilling is continuing, with two rigs testing the true width of the mineralisation and the potential for extensions below MO-A4-207D and a third rig expected to arrive at A4 in mid-September.


A4 Deposit continuing to develop as a key potential source of satellite feed for the Motheo Copper Mine, where full-scale construction and development is now underway following the award of the Mining Licence of 7 July 2021.


Pre-Feasibility Study to support a maiden Ore Reserve for A4 on track to be completed during the quarter as the foundation for a final Feasibility Study targeted in the March 2022 Quarter. This will provide a development pathway for the integration of A4 into the proposed 5.2Mtpa Motheo Production Hub.


Metal Tiger is currently interested in 6,143,357 Sandfire shares representing approximately 3.4% of Sandfire’s issued share capital. As announced on 8 December 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.


A link to the Sandfire announcement released today can be found below:


High Grade Drilling Results at A4 Dome:


https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02418273-6A1049135?access_token=83ff96335c2d45a094df02a206a39ff4


Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:


“It is hugely encouraging to see Sandfire's continued progress in the Kalahari Copperbelt at T3 and in particular A4. Copper is a critical mineral for the green economy and projects such as T3/A4 and the potential of the Kalahari Copperbelt will be hugely important if the world is to achieve the global climate targets. We look forward to further progress.”


For further information on the Company, visit: www.metaltigerplc.com


Enquiries:


Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 3287 5349 Mark Potter (Chief Investment Officer) James Dance James Harris Robert Collins Strand Hanson Limited (Nominated Adviser) Tel +44 (0)20 7409 3494 Paul Shackleton Steve Douglas Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900 Gordon Poole James Crothers Rebecca Waterworth Camarco (Financial PR) Tel: +44 (0)20 3757 4980


Notes to Editors:


Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.


The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.


Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.


Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.


The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.


https://www.businesswire.com/news/home/20210907005387/en/Metal-Tiger-plc-UK-Regulatory-Announcement-Sandfire-A4-Step-Out-Drilling-Update&ct=ga&cd=CAIyGjU3YmM5ZDYyY2E0NzBlYzQ6Y29tOmVuOkdC&usg=AFQjCNETReD6M_ZDB6fpWgBFx7WhXenBM

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Equinox Gold grows Mesquite resource in California

Equinox Gold (TSX: EQX; NYSE: EQX) has released new reserve and resource numbers for its Mesquite mine in California and for the Fazenda Brasileiro and Riacho Dos Machados mines in Brazil.


The Mesquite heap leach gold mine’s latest measured and indicated numbers show a 65% increase in contained gold, to almost 1.4 million oz. (22.3 million tonnes grading 0.24 g/t gold) The contained metal in the inferred resource is up 30% to 912,000 oz. (84 million tonnes grading 0.34 g/t gold).


Proven and probable reserves at Mesquite are exclusive of resources. Reserves total 30.3 million tonnes grading 0.48 g/t gold for 471,000 oz. of contained gold.


Equinox based its Mesquite estimates on 20,230 metres of drilling done during the last half of 2020, and the numbers do not include any results for the 2021 program.


Drilling at Fazenda successfully replaced underground and pit reserves on an annualized basis, with the results of 155,008 metres drilled from May 2018 to Dec. 31, 2020. After mining 196,000 oz. during that period, Equinox says the reserves are virtually unchanged. Proven and probable reserves now stand at 6.6 million tonnes with an average grade of 1.47 g/t gold for 315,000 oz. of contained gold.


The measured and indicated resources (exclusive of reserves) total 5.2 million tonnes with an average grade of 1.77 g/t gold for 294,000 oz. of contained gold. The inferred resource is 3.3 million tonnes with an average grade of 1.5 g/t gold for 158,000 oz. of contained gold.


110,000-metre drill program


This year, Equinox began a 74,000-metre drill program at Fazenda to replace reserves and test greenfield targets in the 70-km-long Fazenda-Santa Luz mining district. Combined with near-mine and regional exploration around the Santa Luz mine (due to pour its first gold early next year) to the north, the company plans to complete more than 110,000 metres of drilling this year to further define the district.


The Riacho Dos Machados (RDM) open pit gold mine numbers include 42,654 metres of grade control drilling done from May 2018 to Dec. 31, 2020, as well as a reinterpretation of the block model. Proven and probable reserves are 17.6 million tonnes grading 0.99 g/t gold for 556,000 oz. of contained gold. The numbers represent a 30% drop in metal content after 173,000 oz. of gold was mined during the period.


The measured and indicated resources (exclusive of reserves) at RDM are 3.2 million tonnes grading 1.27 g/t gold for 132,000 oz. of contained gold. The inferred portion is 3.6 million tonnes grading 1.95 g/t gold for 226,000 oz. of contained gold.


Equinox acquired the RDM gold mine in 2020 with the takeover of Leagold Mining. The company has focused on operational improvements including connection to the power grid and plant optimizations that have boosted throughput and recoveries. Next year’s exploration program will be aimed at increasing resources.


With seven producing mines and four growth projects in the Americas, Equinox has set a goal of producing 1 million oz. of gold annually. The 2021 production guidance is for about 600,000 oz. at an all-in sustaining cost of US$1,300 per ounce.


More details are available at www.EquinoxGold.com.


https://www.canadianminingjournal.com/news/equinox-gold-grows-mesquite-resource-in-california/

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Stanley Druckenmiller is Dumping These 10 Stocks

In this article, we discuss the 10 stocks Stanley Druckenmiller is dumping. If you want to skip our detailed analysis of these stocks, go directly to Stanley Druckenmiller is Dumping These 5 Stocks.


Stanley Druckenmiller is presently placed on the 231st position on the Bloomberg Billionaires Index, a list of 500 most wealthy individuals in the world maintained by business news publication Bloomberg. The net worth of the Wall Street stalwart, who manages over $3.4 billion in assets at Duquesne Capital, stands at more than $10.4 billion. The top holdings of his hedge fund, one of the most successful in the world but closed for outside investors, are concentrated in the technology sector.


Some of the top stocks in the investment portfolio of Duquesne Capital at the end of the second quarter of 2021 were Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. The top five holdings of the fund comprise over 40% of the entire portfolio. The top ten comprise just below 60% of the portfolio. In the past quarter, the fund made new purchases in 16 stocks, additional purchases in 10 stocks, and sold off 28 stocks. Some of these are discussed in detail below.


Despite this flurry of activity, the portfolio value of the fund has decreased by about $400 million between March and June this year. Druckenmiller, who made over $1 billion in 1992 by shorting the British pound along with George Soros, has never had a losing year on record. The top five most valuable holdings he sold during the second quarter accounted for close to 11% of the portfolio during the first quarter. Over the years, the success of Druckenmiller has been an exception in the world of finance that is broadly struggling.


The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.


Our Methodology


With this context in mind, here is our list of the 10 stocks Stanley Druckenmiller is dumping. These were ranked according to the investment portfolio of Duquesne Capital at the end of the second quarter of 2021.


Only those stocks were selected that the hedge fund sold off entirely in the second quarter of 2021. The analyst ratings of each company are also discussed to provide readers with some more context about their investment decisions.


The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey. The stocks are arranged according to the number of hedge fund holders in each company.


Stanley Druckenmiller is Dumping These Stocks


10. First Horizon Corporation (NYSE: FHN)


Number of Hedge Fund Holders: 27


First Horizon Corporation (NYSE: FHN) is placed tenth on our list of 10 stocks Stanley Druckenmiller is dumping. The firm operates as a bank holding company and is headquartered in Tennessee. The fund first owned a stake in the company in the first quarter of 2021. It sold off the entire stake in the second quarter of 2021. The fund paid an estimated average price of $16.91 per share for the holding. At the end of June, the shares were trading at $17.28.


In earnings results for the second quarter, posted on July 16, First Horizon Corporation (NYSE: FHN) reported earnings per share of $0.58, beating market estimates by $0.14. The revenue over the period was $781 million, up 52% year-on-year.


At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $151 million in First Horizon Corporation (NYSE: FHN), the same as in the preceding quarter worth $312 million.


Unlike Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), First Horizon Corporation (NYSE: FHN) is one of the stocks Stanley Druckenmiller is dumping.


Number of Hedge Fund Holders: 43


Cloudflare, Inc. (NYSE: NET) is ranked ninth on our list of 10 stocks Stanley Druckenmiller is dumping. The company owns and operates a cloud platform that markets network services to businesses. It is headquartered in California. According to 13F filings, the fund first owned a stake in the cloud company in the third quarter of 2021. It sold off the entire stake in the second quarter of 2021. The fund paid an estimated average price of $64.66 per share for the holding. At the end of June, the shares were trading at $105.84.


On August 10, investment advisory Argus reiterated a Buy rating on Cloudflare, Inc. (NYSE: NET) stock and raised the price target to $140 from $125, highlighting that the firm was offering a unique set of services.


Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cloudflare, Inc. (NYSE: NET) with 57 million shares worth more than $165 million.


Unlike Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Cloudflare, Inc. (NYSE: NET) is one of the stocks Stanley Druckenmiller is dumping.


In its Q4 2020 investor letter, Alger Mid Cap Focus Fund, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE: NET) was one of them. Here is what the fund said:


“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment. While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”


8. Barrick Gold Corporation (NYSE: GOLD)


Number of Hedge Fund Holders: 47


Barrick Gold Corporation (NYSE: GOLD) is a Canada-based mining company. It is placed eighth on our list of 10 stocks Stanley Druckenmiller is dumping. The fund sold off its entire stake in the mining company between March and June this year.


On August 23, investment advisory National Bank maintained an Outperform rating on Barrick Gold Corporation (NYSE: GOLD) stock but lowered the price target to C$37 from C$38. Mike Parkin, an analyst at the firm, issued the ratings update.


At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Barrick Gold Corporation (NYSE: GOLD), down from 49 the preceding quarter worth $1.3 billion.


Unlike Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Barrick Gold Corporation (NYSE: GOLD) is one of the stocks Stanley Druckenmiller is dumping.


In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE: GOLD) was one of them. Here is what the fund said:


“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”


7. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)


Number of Hedge Fund Holders: 64


Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is a Taiwan-based firm that makes and sells semiconductors. It is ranked seventh on our list of 10 stocks Stanley Druckenmiller is dumping. According to mandatory filings, the fund first owned a stake in the firm in the first quarter of 2021. It sold off that stake in the second quarter. The fund paid an estimated average price of $118.28 per share for the holding. At the end of June, the shares were trading at $120.16.


On June 30, investment advisory Susquehanna upgraded Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) stock to Neutral from Negative and raised the price target to $105 from $85, underlining that the firm was benefiting from increased revenue diversification.


At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $10.6 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), down from 76 in the preceding quarter worth $10.8 billion.


Unlike Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is one of the stocks Stanley Druckenmiller is dumping.


In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was one of them. Here is what the fund said:


“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter. Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years. TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”


Number of Hedge Fund Holders: 76


JD.com, Inc. (NASDAQ: JD) is placed sixth on our list of 10 stocks Stanley Druckenmiller is dumping. The company operates as a retail infrastructure provider and operates an online ecommerce marketplace with headquarters in China. Latest filings show that Duquesne Capital, which sold off its entire stake in the company during the second quarter, first owned a stake in the firm in the second quarter of 2019. The firm paid an estimated average price of $52.64 per share on the stake it built. At the end of June, the shares were being sold at $79.81.


On July 23, investment advisory Mizuho maintained a Buy rating on JD.com, Inc. (NASDAQ: JD) stock but lowered the price target to $85 from $95, underlining that regulation pressures in China would have a limited impact on the company.


Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in JD.com, Inc. (NASDAQ: JD) with 51.5 million shares worth more than $4.1 billion.


Unlike Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), JD.com, Inc. (NASDAQ: JD) is one of the stocks Stanley Druckenmiller is dumping.


In its Q1 2021 investor letter, Arisaig Partners, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ: JD) was one of them. Here is what the fund said:


“Our largest holding as a firm, JD.com, we expect to grow earnings at an annualised rate of 30% over the next five years, implying it will trade on an EV / EBITDA of 7.5x at the end of this period. Is this a growth stock or a value stock? Does anyone care? Do these labels really matter? For the Asia Fund, with a higher pre-existing allocation to our core FMCG holdings coming into the year, we took advantage of capital market volatility to further concentrate on our highest conviction names. JD.com has been the main destination for our limited reallocations as evidence continues to emerge supporting our thesis that the company has a strong right-to-win in the large and highly fragmented USD1.8th Chinese grocery market. We have also been encouraged by the fact that after years of persistence, the company is beginning to engage with us on ESG issues (we have specifically discussed data protection, climate change and the circular economy). ESG is now being considered at the board level, and specific sustainability reporting should follow in the coming months. Having long displayed a healthy obsession with customer service, we interpret these latest conversations as a sign that JD is beginning to develop a more sophisticated understanding of its impact on all stakeholders.”


To see the rest of the stocks on this list click Stanley Druckenmiller is Dumping These 5 Stocks.


Suggested Articles:


Disclosure. None. Stanley Druckenmiller is Dumping These 10 Stocks is originally published on Insider Monkey.


https://www.insidermonkey.com/blog/stanley-druckenmiller-is-dumping-these-10-stocks-974938/&ct=ga&cd=CAIyGjhiZDNmZWM3ODhhZjdlNjc6Y29tOmVuOkdC&usg=AFQjCNGOH5bux853p94PcQQSVPTOnrxWg

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Goldshore Resources Receives Initial Magnetics Images from Geotech VTEM System Survey on the Moss Lake Gold Project

Vancouver, British Columbia--(Newsfile Corp. - September 9, 2021) - Goldshore Resources Inc. (TSXV: GSHR) (OTCQB: GSHRF) (FWB: 8X00) ("Goldshore" or the "Company"), is pleased to announce that it has received the initial magnetic images from the heli-borne Versatile Time-Domain Electromagnetic (VTEM" Plus) and Horizontal Magnetic Gradiometer geophysical survey conducted by Geotech Ltd. ("Geotech") on the Moss Lake Gold Project located in northwest Ontario (Figure 1).


Highlights:


Geotech's processed magnetic images highlight the regional-scale attenuation, asymmetric boudinage and anastomosing character of shear zones, which are conducive for similar-scale fluid flow systems and speak to the prospectivity for mineralization in the district;


The data allows the mapping of tightly folded stratigraphic units and intrusion margins, which correlate with gold mineralization and provide additional targets for drill testing;


The data also highlight late NNE-striking sinistral strike slip faults that truncate the Moss Lake gold deposit and suggest a potential extension of mineralization in an area that has been significantly under-drilled; and


The structurally controlled NE-trending domain boundary between highly magnetic and weakly magnetic rocks along the eastern flank of the Company's tenement is the focus of high-grade copper-gold mineralization in the Hamlin prospect (IOCG) and the North Coldstream mine (VMS).


Peter Flindell, VP Exploration commented, "We are delighted to receive this excellent quality dataset that provides significant insight into the structural complexity of our portion of the Shebandowan Greenstone Belt. At this early stage, it suggests both potential offsets of, and focusing mechanisms for, mineralization. This information will greatly assist our efforts to generate new targets and prioritize our drilling program."


Figure 1: Location map showing Goldshore's Moss Lake Project relative to the Shebandowan Greenstone Belt


To view an enhanced version of Figure 1, please visit:


https://orders.newsfilecorp.com/files/8051/95957_fbe858b0444da85d_002full.jpg


Technical Overview


In July 2021, Geotech completed a 2,080-line kilometer heliborne VTEM and magnetic survey on a 100-metre line spacing over the entire tenement, and a 50-metre line spacing over the areas of known mineralization at Moss Lake, Coldstream, and Hamlin. The sensor was maintained at a nominal drape height of 30 meters. The details of this survey are described in the Goldshore press release dated July 14, 2021.


Goldshore technical staff have conducted a preliminary review of the recently received magnetic imagery ahead of a more detailed study being undertaken by TechnoImaging LLC, of Salt Lake City, Utah; which will include 3D inversions of the entire magnetic and VTEM data. TechnoImaging will produce a more qualified and detailed geological interpretation together with constrained 3D targets for follow up exploration.


As part of Goldshore's review, the Company commenced with the Total Magnetic Intensity ("TMI") image available from the OGSEarth website curated by Ontario's Ministry of Northern Development, Mines, Natural Resources and Forestry (Figure 2). This is a composite of several historic kilometer-scale surveys. It shows the Shebandowan Greenstone Belt to be structurally complex with multiple sigmoidal magnetic trends defined by anastomosing shears and attenuated, lenticular, rigid bodies, which attests to the high degree of non-axial shearing. Furthermore, the presence of boudinaged rigid bodies in the high strain zones provides for markedly different strain responses that can be important for producing and maintaining a permeability network for mineralizing fluids. These rigid bodies include highly magnetic mafic intrusions and low magnetic granitic intrusions, while the highly sheared rocks are a sequence of felsic, intermediate and mafic volcanic rocks together with minor sedimentary units.


Figure 2: Goldshore's Moss Lake Project and known prospects relative to the Shebandowan Greenstone Belt (as defined by the OGSEarth TMI image) together with identified magnetic domains showing the complex anastomosing shears and asymmetric boudinaged bodies.


To view an enhanced version of Figure 2, please visit:


https://orders.newsfilecorp.com/files/8051/95957_fbe858b0444da85d_003full.jpg


The Geotech TMI image (Figure 3) overlays extremely well with the regional TMI image giving high confidence in the validity of both datasets as a tool for geological interpretation. The detailed TMI image shows two domains of high magnetic intensity along a NE-SW axis representing mafic intrusions and volcanic rocks along the southeast and northwest margin of the Moss Lake Gold Project. The central NE-striking band of lower magnetic character through the core of the Moss Lake Gold Project reflects the sheared sequence of felsic - intermediate volcanic rocks and sedimentary units together with smaller, presumably also boudinaged, intrusions.


Figure 3: Detailed Total Magnetic Intensity image from Geotech showing the known prospects relative to the main magnetic domains


To view an enhanced version of Figure 3, please visit:


https://orders.newsfilecorp.com/files/8051/95957_fbe858b0444da85d_004full.jpg


While the structures shown in the TMI image (Figure 2) reflect the regional-scale attenuation within the greenstone belt, the more processed Tilt Derivative ("TD") image (Figure 3) shows a high degree of geological detail. The TD image, which combines the approach taken in more traditional vertical derivative and horizontal gradient images, emphasizes changes in magnetic signature rather than absolute magnetic intensity.


Figure 4: Tilt Derivative image from Geotech showing the greater geological detail than can be mapped by the detailed magnetic survey data. This includes NNE-striking strike-slip faults and tightly folded bodies indicated by contorted red colours. The inset box refers to the location of Figure 5.


To view an enhanced version of Figure 4, please visit:


https://orders.newsfilecorp.com/files/8051/95957_fbe858b0444da85d_005full.jpg


The TD image shows better definition of the domain boundaries shown in Figure 3 and hints at significant and multiple tight folding events that can result in progressive repartitioning of fluid flow and maintenance of permeability networks over significant time. This speaks to the prospectivity of the geology within Goldshore's land package.


The image also maps late NNE-striking faults, which offset the structurally complex stratigraphy.


Figure 5 is an inset of the area around the Moss Lake gold deposit. It shows the detail that may not be obvious in the larger image (Figure 4), including the multiply folded geometry and the association of gold grades with the edges of magnetic and non-magnetic bodies. Figure 5 also shows areas where the Company may expect to discover additional mineralization as extensions of the historical resource.


Figure 5: Detailed view of the Moss Lake gold deposit showing the Company's preliminary interpretation, gold assays above 0.5 g/t Au in historic drill holes and new target areas. The latter include the following short term priorities: A - immediate southwest extension to Moss Lake; B - faulted offset extension to Moss Lake; C and D - northeast strike extensions to Moss Lake Main Zone; and E - potential mineralization in a parallel zone. Potential exists in many other similar, but not yet defined settings.


To view an enhanced version of Figure 5, please visit:


https://orders.newsfilecorp.com/files/8051/95957_fbe858b0444da85d_006full.jpg


The Company's preliminary observations include:


Domain boundaries between mafic dominated and felsic dominated stratigraphic and intrusive rocks are clearly major fault zones across which there are high gradients in shearing strain (Figures 2 and 3);


The known high-grade copper-gold projects at Hamlin and the North Coldstream mine lie along the eastern NE-trending domain boundary (Figures 2-4);


The late NNE-trending faults are interpreted as sinistral strike-slip structures (Figure 4);


The high-grade Iris Lake prospect appears to be localized in a fold nose (Figures 3 and 4);


One of the late NNE-striking faults truncates the western margin of the Moss Lake gold deposit raising the potential for the discovery of the extension of this deposit on the other side of the fault. Current information suggests that the extension likely occurs to the southwest in an area that has been drilled by only two holes by the previous explorers, which did intersect gold mineralization (Figure 5);


Isoclinal folding and boudinaging in shear zones points to the much greater structural complexity of the Shebandowan Greenstone Belt, suggesting that a greater number of structurally localized mineralized areas may await discovery (Figures 4 and 5); and


Gold mineralization at the Moss Lake gold deposit occurs along the flanks of magnetic bodies. Several potential extensions to mineralization at the deposit scale are indicated on Figure 5.


Goldshore is confident that a closer review of these magnetic data over the whole tenement, together with historic prospecting datasets that are yet to benefit from this valuable geological context, will generate many more prospect candidates for future drill testing.


The Company awaits the final VTEM imagery, which will highlight the distribution of conductive units across the project. These are generally concentrations of sulphide mineralization that should correlate with our high-grade copper-gold targets, but may also include graphite-rich stratigraphic units. Work by TechnoImaging will allow us to discriminate these anomaly sources. The nature of these conductors will map the extent of the known mineralization, while any additional conductors will be new and previously undiscovered targets.



To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95957


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Base Metals

Burglaries in Canterbury linked to copper piping theft

A suspected burglar has been arrested in connection with a series of break-ins in Canterbury linked to thefts of copper piping.


Officers investigating the offences are now appealing for witnesses, or any victims yet to report similar crimes, to contact them.


Glenside Avenue, Canterbury. Photo: Google Maps


Kent Police was called at 11.50pm yesterday (Saturday), following a report of suspicious activity at an empty property in Glenside Avenue.


Patrols attended and found the property had been entered after a door was forced.


A 39-year-old man was located inside and arrested on suspicion of burglary.


It is believed the suspect may be linked to previous offences over recent weeks, including a number of burglaries at properties in the vicinity of the A28 Sturry Road.


https://www.kentonline.co.uk/canterbury/news/arrest-following-series-of-copper-piping-thefts-253422/&ct=ga&cd=CAIyGjYwMWJjNmRlNzBlMWQ1MzU6Y29tOmVuOkdC&usg=AFQjCNHyfwibeqrXsNG9h2J3i9P_knY4Y

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Korea Zinc emerges as winner despite sharp decline in treatment fees

Korea Zinc is the world's largest lead and zinc smelter


Korea Zinc Chairman and CEO Choi Chang-keun


Zinc slabs produced by Korea Zinc


Just like many other manufacturers around the world, 2020 was a turbulent year for Korea Zinc Co., the world’s largest lead and zinc smelter.The South Korea-based company saw its treatment charges (TCs), fees it receives from miners for processing zinc concentrate into refined metal, drop considerably even into this year, hurting its earnings.Nevertheless, Korea Zinc eked out decent operating profit margins as the company’s advanced refining technology offset falling TCs with more byproduct extracts such as gold, sliver and sulfuric acid plus rising zinc prices in the global market.“The falling TC must have cut Korea Zinc’s profit by as much as 300 billion won in the first half alone. Still, the company posted decent earnings as the loss was offset by higher gains in other byproducts,” said an industry official.In the first six months of this year, Korea Zinc posted an operating profit of 543 billion won ($469 million) on revenue of 4.58 trillion won – record first-half results for the company.

The stellar performance came as the spot zinc treatment charge plummeted to around $80 per ton in August this year from a high of $300 in March 2020 due to a weak supply of zinc concentrate from miners amid the COVID-19 pandemic.But demand for zinc and lead has been growing from the start of this year with the recovering global economy and increased sales of electric-vehicle batteries, which use those metals as raw materials.According to Korea Resources Corp., the global zinc prices rose to $2,984.5 a ton as of Sept. 3, up about 10% from $2,700 at the end of 2020. Such prices have risen 75% from March 2020, when COVID infections broke out and spread rapidly.With its annual production capacity of 650,000 tons of zinc and 420,000 tons of lead, the Korean smelter has also posted decent earnings from higher prices of byproducts.While smelting the non-ferrous metal concentrate, Korea Zinc also produces 12 tons of gold, 2,500 tons of silver and 1.5 million tons of sulfuric acid annually as byproducts.Prices of gold and silver have been rising steadily since last year. 

The sulfuric acid price has risen almost 150% from the end of 2020 on increased demand for the raw material from makers of semiconductors and batteries.Despite the weak business cycle in past years, Korea Zinc has been posting an operating profit margin of over 10% every year since 2006, and analysts expect the company to join the trillion won revenue club this year with an estimated 2021 sales of 1.08 trillion won.“The zinc concentrate supply chain is in a recovery phase and product demand is increasing. We expect the international benchmark TC to also rise again from later this year,” said a Korea Zinc official.Established in 1974, the company has dedicated itself to a non-ferrous metal smelting business, manufacturing zinc ingots, electrolytic gold, silver, lead, sulfuric acid and copper.More than half of refined zinc is used as an alloy and plating material. Zinc coated steel sheet is used in the automotive industry and roughly 80% of refined lead is used as a battery material.  In efforts to diversify its business portfolio, Korea Zinc Chairman and CEO Choi Chang-keun is also trying to enter the battery material business through joint ventures.

In 2018, the company joined hands with LG Chem Ltd. to establish Korea Energy Materials Co. (KEMCO), a JV that produces nickel sulfate, a raw material for lithium-ion batteries and plating.Korea Zinc and LG Chem are also seeking to build a battery precursor JV. A precursor is a material created by mixing nickel, cobalt and manganese, and is added to lithium to make cathodes.Jung-hwan Hwang at jung@hankyung.com In-Soo Nam edited this article.

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Copper remains in a twilight zone

Copper may still be stuck in a twilight zone for a while, waiting for strong catalysts. After hitting a peak of US$10,460/t in early May this year, the red metal has since been range-bound between US$9,000/t to US$10,000/t. With the subject of “to taper or not to taper” dominating, along with reflation trades subsiding, prices have been confined to the lower part of the range over the last three months.


Copper prices appear to be looking for a breakout after the Jackson Hole symposium whereby the narrative has changed to a delay in Fed tapering. Meanwhile, the huge miss from last week’s US non-farm payroll data just further fueled the pro-risk mood, and copper rallied amid a weaker dollar. Now there seems to be a "snooze button" that is allowing more time for inflation to entrench and intensify, but the question is whether there could be a conviction among bulls to boost their bullish views further. Money managers have been unwinding their longs in COMEX, and the net long position has retreated from the recent cycle peak in late October last year of 91.6k lots, to 31.6k lots at the end of August.


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Processing Production At Kasanshi Mine

Product Supply Information


Processing Production At Kasanshi Mine


First Quantum plans to expand operations at Kansanshi mine in ...


Production this year at the Kansanshi mine is expected to be 220000t to 235000t of copper and 120000oz to 130000oz of gold. In February 2019 First Quantum Minerals reportedly offered to acquire the remaining 20% stake owned by the Zambian Government in the Kansanshi copper mine.


Kansanshi copper-gold mine Solwezi Zambia East Africa


The Kansanshi copper-gold mine lo ed near Solwezi in Zambia is currently the biggest copper mine by production in Africa. The open-pit mine is owned and operated by Kansanshi Mining KMP a joint venture between First Quantum Minerals 80% and the Zambia Consolidated Copper Mines-Investment Holdings ZCCM-IH 20% .


Major Mines and Projects Kansanshi Mine


The cutbacks generally comprise wide benches of 200 m to 300 m width providing several mining horizons from which to satisfy the feed requirements for multiple processing routes. In general ore is currently hauled to a ROM run of mine pad lo ed immediately south of the North West Pit and to a number of ore stockpiles whereas waste is ...


Kansanshi Copper Mine - Mining Technology Mining News and ...


The mine is 80% owned by First Quantum Minerals through its subsidiary Kansanshi Mining. The remaining 20% is held by a subsidiary of ZCCM Investment Holdings a state-owned company in Zambia. The mine began production in April 2005. The mine produced 270724t of copper and 167395oz of gold in 2013.


First Quantum eyes operations expansion at Kansanshi mine


First Quantum Minerals Ltd has announced that it plans to expand operations at the Kansanshi mine. In a technical report the company said it plans to expand the sulphide ore processing facility ...


kansanshi mining in africa projects


The Kansanshi copper-gold mine lo ed near Solwezi in Zambia is currently the biggest copper mine by production in Africa The open-pit mine is owned and operated by Kansanshi Mining KMP a joint venture between First Quantum Minerals 80 and the Zambia Consolidated Copper Mines-Investment Holdings ZCCM-IH 20...


First Quantum Minerals Ltd. - Our Operations


The Kansanshi mine is owned and operated by Kansanshi Mining PLC which is 80 per cent owned by First Quantum. Mining and Processing. Kansanshi is a vein deposit with economic copper and gold mineralization occurring in three ore-types: primary sulphide mixed supergene and oxide.


Production Statistics - First Quantum Minerals


Home > Our Operations > Operating Mines > Kansanshi > Production Statistics. Q2 2021 Production. Sulphide ore milled 000& 39;s tonnes 3417: Sulphide ore grade ...


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SMM Evening Comments (Sep 7): Shanghai Nonferrous Metals Mostly Fell amid Sluggish Fundamentals_SMM

SHANGHAI, Sep 7 (SMM) – Shanghai nonferrous metals mostly closed in the negative territory as the market lacked key influencing factors and the fundamentals were generally sluggish.


Shanghai copper fell 0.45%, aluminium added 0.44%, lead plunged 1.13%, zinc nudged up 0.16%, tin lost 0.65%, and nickel plummeted 1.53%.


Copper: The most-traded SHFE 2110 copper closed down 0.45% or 310 yuan/mt to 69070 yuan/mt, with open interest down 966 lots to 122400 lots.


On the macro front, China released its trade data for August, higher than the previous value and estimate, maintaining its growth since April, 2020, which is basically in line with market expectation. The seasonally-adjusted economic readings for major countries in Eurozone were also in line with estimate.


On the fundamentals, the import volume of unwrought copper and copper stood at 394,017 mt in August according to the customs, down 7% from the previous month, marking the fifth consecutive month of declining. In January-August, the cumulative import volume totalled 3,613,085.0 mt, a decrease of 15.4% year on year. Market demand has been depressed in light of heightening copper prices in both domestic and foreign markets, bringing down the import volume to two-year low.


Tonight the market shall watch the seasonally-adjusted job report in the Eurozone for Q2.


Aluminium: The most-traded SHFE 2110 aluminium closed up 0.44% or 95 yuan/mt to 21730 yuan/mt, with open interest down 12145 lots to 286000 lots.


Fed is scheduled to release the Beige Book on Wednesday, and inventors will look for signals of inflation pressure and right labour market. On the other hand, the turmoil in Guinea will potentially push up alumina cost.


In China, the aluminium market remained bullish in light of strict control over energy consumption and environmental protection, as well as continuous disruptions to the supply side. Meanwhile, social inventories kept declining.


Lead: The most-traded SHFE 2110 lead closed down 1.13% or 170 yuan/mt to 14895 yuan/mt, with open interest up 3827 lots to 93165 lots.


Cost pressures on primary lead smelters intensified, narrowing discounts from the last trading day. Intraday lead ingot spot prices fell, but transactions were light as goods available in the market was insufficient.


Zinc: The most-traded SHFE 2110 zinc closed up 0.16% or 35 yuan/mt at 22505 yuan/mt, with open interest down 2417 lots to 91388 lots. In spot market, inventories in Shanghai and London both fell, and the market kept an eye on the seasonal high in September and October. Goods holders continued to make shipments, but the downstream sector mainly took a wait-and-see attitude. Overall transaction sentiment turned light.


Tin: The most-traded SHFE 2110 tin closed down 0.65% at 244070 yuan/mt, with open interest down 477 lots.


On the fundamentals, spot transactions were basically stable. Upstream output fell slightly according to SMM survey, but could potentially be offset by the reduced demand for export. Therefore, supply and demand pattern will stay balanced in the short term.


Nickel: The most-traded SHFE 2110 nickel closed down 1.53% or 2260 yuan/mt at 145120 yuan/mt, with open interest down 11594 lots to 127536 lots. Nickel inventories were basically low, while supply of ferronickel and nickel ore was still tight, supporting nickel prices. However, the demand side may experience multiple disruptions, including demand from the new energy sector which is likely to trend down amid shortage of chips. And the potential output cut on stainless steel will send the nickel prices to the bearish trajectory. The market shall closely watch the dynamics of the demand side.


https://news.metal.com/newscontent/101591490/smm-evening-comments-sep-7-shanghai-nonferrous-metals-mostly-fell-amid-sluggish-fundamentals&ct=ga&cd=CAIyGjUyODE2YzRlODkwZGM2Y2E6Y29tOmVuOkdC&usg=AFQjCNEesv1yzgDIjnrrtQFwgKDVmrP6c

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Consolidated Woodjam Copper-Gold Project Update: Hole SE21-89 intersects 142.4 m of 0.70% CuEq

Vancouver, B.C. - TheNewswire - September 7, 2021 – Consolidated Woodjam Copper Corp. (“Woodjam” or the “Company”) (TSXV:WCC) (OTC:CWMCF) is pleased to announce new results from the drilling program at the Woodjam property at the town of Horsefly, BC, approximately 50 km northeast of the city of Williams Lake. The company is currently 2100 m through the 4000 m drill program.


Hole SE21-89, was collared in the higher grade copper-gold central portion of the Southeast Zone to reduce drill hole spacing for better definition and continuity. This area carries higher gold values than much of the deposit and demonstrates that the higher grade central portion of the deposit starts at the bedrock interface. The holes in the table below are from a portion of a long section through this area and are depicted on the long-section diagram, attached.

(Copper equivalent grades (CuEq per cent) and gold equivalent grades (AuEq g/t) are for comparative purposes only. Calculations are uncut and processing recovery is assumed to be 100 per cent. The following metal prices were used to calculate the equivalence: $1,700 (U.S.) per ounce gold and $4.00 (U.S.)/lb copper using the following formula: AuEq g/t Au is equal to g/t Au plus ((Cu percent multiplied by 2205 multiplied by 4.00) divided by (1700 divided by 31.10) multiplied by 100))-CuEq per cent Cu is equal to per cent Cu plus ((g/t Au multiplied by 1700 divided by 31.20) divided by (2205 multiplied by 4.00) multiplied by 100))

Two holes tested the Megaton IP target, approximately 2.0 km along strike, northeasterly, from the Southeast Zone. These northwest directed holes, MT21-07 and 08, were located approximately 3500 m apart along the southeast side of the IP anomaly. Both holes intersected copper mineralization associated with quartz stockwork similar to the style of mineralization at the Southeast Zone.

The highly anomalous presence of molybdenum (MT21-07: 1.36 m of 0.779% Mo from 288.37 m and 1.26 m of 3.48% Mo from 313.28 m) suggests that these holes are into a peripheral zone of the occurrence and are comparable to holes just outside the main body of the Southeast Zone.

The Megaton IP target suggests that the Southeast Zone mineralizing system continues for 2 to 4 km to the northeast and further drilling will be needed to adequately explore the Megaton Target area.

The significant mineralized intercepts are shown in the table below.

Hole ID From (m) To (m) Interval (m) Cu (%) Au (g/t) MT21-07 162.00 255.00 93.00 0.13 0.01 MT21-08 165.00 222.00 57.00 0.18 0.01

Glen Garratt, P. Geo., is the qualified person who takes responsibility for this news release.

Glen Garratt

Glen Garratt, P.Geo., VP, Director

Consolidated Woodjam Copper Corp.

About Woodjam Copper


Woodjam Copper (TSX-V: WCC) trades on the TSX Venture Exchange and owns a 100% interest in the 64,000 hectare Woodjam copper gold porphyry project located in south-central British Columbia approximately 50 km east of the community of Williams Lake in a low elevation flat to undulating landscape, well accessed by logging roads and in close proximity to hydro power. The Woodjam Project hosts the following resources:


Zone Tonnes (Mt) Cu (%) Au (g/t) Cu (M lbs.) Au (1000 oz.) Southeast 221.7 0.31 0.05 1,541.9 391.1 Deerhorn 32.8 0.22 0.49 158.2 516.2 Takom 8.3 0.22 0.26 39.7 68.2


These Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The tonnes and grade are reported at a USD$8.60/t NSR cut-off and are constrained within an optimized pit shell. NSR calculation uses USD1,650/oz Au, USD3.90/lb Cu and metallurgical recoveries specific to each deposit.‡ For the SE Zone, Au and Mo are not considered reportable due to the uncertainty regarding economic recoveries.


https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1718-tsx-venture/wcc/106132-woodjam-copper-gold-project-update-hole-se21-89-intersects-142-4-m-of-0-70-cueq.html&ct=ga&cd=CAIyGjYwMWJjNmRlNzBlMWQ1MzU6Y29tOmVuOkdC&usg=AFQjCNHSU8KNoZDEvC_Fqu8Wcgle0Ibki

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Silver Spruce Resources Reports Assays from Phase 1 Drilling at El Mezquite Au-Ag Project, Sonora, Mexico

BEDFORD, NS / ACCESSWIRE / September 7, 2021 / - Silver Spruce Resources Inc. ("Silver Spruce" or the "Company") (TSXV:SSE) is pleased to announce the receipt of assays from the first ten holes of its Phase 1 exploration drilling at the El Mezquite Au-Ag property ("El Mezquite" or the "Property"). A total of 2,485 metres were drilled in twenty (20) holes covering eight collar locations.


Figure 1. El Mezquite property showing RC rig from Layne de Mexico


"We received favourable precious metal assays in nine of the first ten holes consistent with our exploration expectations for a low-grade, heap-leachable target with mineralization in the range of 0.1 g/t Au to 1.0 g/t Au. Thirty-one sampling intervals, ranging from surface to 146.4 metre depth downhole, are shown in Table 1, including up to five separate sections in one hole (MEZ-005), are reported from 0.1 g/t Au to 0.955 g/t Au. Discrete sections of >0.1 g/t Au with multiple samples reached a maximum of 4.58 metres. Silver values ranged from 1 g/t Ag to 241 g/t Ag and elevated Ag occurred commonly with higher Au and base metals. Au-Ag zoning or stacked mineralized structures could be indicated given no clear relationship of Ag to associated Au grades," stated Greg Davison, Silver Spruce Vice-President Exploration and Director. "The mineralized intervals, identified to date, reflect the thickness of the vein and structurally controlled surface showings. Of importance to the geochemical interpretation, the pathfinder elements (Hg, Cu, Pb, Zn, Sb and As) often displayed a well-defined metal halo, up to eighteen (18) metres in apparent thickness downhole, within and peripheral to the multiple gold and silver-bearing intervals and potentially are indicative of a significant precious metal mineralizing system. We look forward to the compilation of the 2D and 3D spatial interpretation of the assay results from these and the remaining drill holes, the latter of which were focused on gold-bearing surface exposures along interpreted structural lineaments."


https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1140-tsx-venture/sse/106085-silver-spruce-reports-assays-from-phase-1-drilling-at-el-mezquite-au-ag-project-sonora-mexico.html&ct=ga&cd=CAIyGmY4MjQ0MjJmZmM3MDliMzc6Y29tOmVuOkdC&usg=AFQjCNGad2bpztv3bP3ssVO61f-tI0VRK

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Kamoa-Kakula Phase 1 Concentrator Plant Approaching Steady-State-Design Performance

14,815 tonnes of copper produced in August, bringing the year-to-date production to more than 36,700 tonnes


Installation of an additional concentrate filter expected by end of October 2021, further boosting copper production


Phase 2 concentrator plant construction now 44% complete


Mining crews delivered 220,000 tonnes of ore grading a record 6.03% copper from August 1 to 20, including 85,000 tonnes grading 7.55% copper from the centre of the Kakula Mine


Surface ore stockpiles continue to grow; now hold 3.59 million tonnes grading 4.77% copper, containing more than 171,000 tonnes of copper


All six new turbines at the Mwadingusha hydropower plant now operational and generating clean electricity for Kamoa-Kakula


Kolwezi, Democratic Republic of Congo--(Newsfile Corp. - September 7, 2021) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng "Miles" Sun are pleased to announce that hot commissioning and ramp-up of Kamoa-Kakula's Phase 1, 3.8 million-tonne-per-annum (Mtpa) concentrator plant is progressing well and approaching nameplate steady-state-design performance.


During August, the plant achieved an average milling rate of more than 9,000 tonnes per day at an average feed grade of more than 6.0% copper. On August 29, the Phase 1 concentrator plant produced in excess of 600 tonnes of copper in filtered concentrate, which is the plant's steady-state-design daily production rate.


During August, the concentrator plant produced concentrate containing 14,815 tonnes of copper. As of August 31, a total of 36,712 tonnes of copper had been produced year-to-date for delivery to either the Lualaba Copper Smelter near Kolwezi, or to international markets. All concentrate produced to date has been loaded onto trucks (either bulk for the Lualaba Smelter or in bags for international markets) and the concentrate backlog at the mine site has been cleared.


Chart 1: Monthly tonnes of copper produced May 2021 to August 2021.


To view an enhanced version of Chart 1, please visit:


https://orders.newsfilecorp.com/files/3396/95693_59685641249988fc_002full.jpg


Steve Amos, Kamoa Copper's Head of Projects, commented, "The hot commissioning and ramp-up of the Phase 1 concentrator plant is going very well, with no significant issues encountered to date. Fast tracking of an additional concentrate filter will enable us to produce more concentrate and take advantage of the exceptional ore grades coming from the Kakula Mine, as well as any additional milling throughput in excess of design capacity. A third concentrate filter is being procured and will be incorporated into the Phase 2 plant."


Copper recoveries improved to an average of 83% during August, with recoveries in excess of 86% achieved on multiple occasions. The Phase 1, steady-state-design copper recovery is approximately 86%.


Chart 2: Cumulative tonnes of copper produced May 2021 to August 2021.


To view an enhanced version of Chart 2, please visit:


https://orders.newsfilecorp.com/files/3396/95693_59685641249988fc_003full.jpg




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Ten biggest producing surface mines in North America in 2020

Here are the ten largest surface mining projects by production in North America in 2020, according to GlobalData’s mining database.


1. Morenci Mine


The Morenci Mine is a copper mining project in Arizona, United States. The brownfield project is owned by Freeport-McMoRan and is due to operate until 2044. The mine produced an estimated 207.937Mt of ROM in 2020. It had an estimated production of 445.4 thousand tonnes of copper in 2020.


2. Mont Wright Mine


The Mont Wright Mine is an iron ore mine owned by ArcelorMittal. Located in Quebec, Canada, the greenfield mine produced approximately 67Mt of ROM in 2020. It had an estimated production of 23.2 mtpa of iron ore in 2020. The expected mine closure date is 2052.


3. North Antelope Rochelle Mine


Located in Wyoming, United States, the North Antelope Rochelle Mine is a coal mining project owned by Peabody Energy. The mine is expected to operate until 2040.


The greenfield mine produced an estimated 59.965Mt of ROM in 2020. It had an estimated production of 59.965 mtpa of coal in the same year.


4. Black Thunder Mine


The Black Thunder Mine is a coal mine located in Wyoming, United States. Owned by Arch Resources, the greenfield project produced an estimated 59.909Mt of ROM in 2020.


The mine had an estimated production of 45.53 mtpa of coal in 2020.


5. Highland Valley Copper Mine


Owned by Teck Resources, the Highland Valley Copper Mine is a copper mine situated in British Columbia, Canada. The mine is expected to operate until 2040.


The ROM production at the mine produced was approximately 52.798Mt of ROM in 2020. It had an estimated production of 119.3 thousand tonnes of copper in 2020.


6. Sierrita Mine


The Sierrita Mine is a copper mining project in Arizona, United States. The brownfield project is owned by Freeport-McMoRan and is due to operate until 2080. The mine produced an estimated 39Mt of ROM in 2020. It had an estimated production of 80.73 thousand tonnes of copper in 2020.


7. Bagdad Mine


The Bagdad Mine is a copper mine owned by Freeport-McMoRan. Located in Arizona, United States, the brownfield mine produced approximately 33.496Mt of ROM in 2020. It had an estimated production of 97.976 thousand tonnes of copper in 2020. The expected mine closure date is 2101.


8. Minntac Mine


Located in Minnesota, United States, the Minntac Mine is an iron ore mining project owned by United States Steel. The mine is expected to operate until 2031.


The greenfield mine produced an estimated 32.693Mt of ROM in 2020. It had an estimated production of 12.791 mtpa of iron ore in the same year.


9. Antelope Mine


The Antelope Mine is a coal mine located in Wyoming, United States. Owned by Navajo Transitional Energy, the greenfield project produced an estimated 27.811Mt of ROM in 2020.


The mine had an estimated production of 21.15 mtpa of coal in 2020. The Antelope Mine will operate until 2028.


10. MariGold Mine


Owned by SSR Mining, the MariGold Mine is a gold mine situated in Nevada, United States. The mine is expected to operate until 2030.


The ROM production at the mine produced was approximately 27.389Mt of ROM in 2020. It had an estimated production of 208.55 thousand ounces of gold in 2020.


Methodology:


This information is drawn from GlobalData’s mines and projects database, which tracks all operating and developing mines and projects globally. Verdict’s parent company GlobalData provides business information to 4,000 of the world’s largest companies.


https://www.mining-technology.com/marketdata/ten-biggest-producing-surface-mines-in-north-america-in-2020/

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Ten biggest producing surface mines in the Middle East and Africa in 2020

Here are the ten largest surface mining projects by production in the Middle East and Africa in 2020, according to GlobalData’s mining database.


1. GolGohar Iron Ore Mine


The GolGohar Iron Ore Mine is an iron ore mining project in Kerman, Iran. The greenfield project is owned by Golgohar Mining & Industrial. The mine produced an estimated 60.423Mt of ROM in 2020. It had an estimated production of 24.169 mtpa of iron ore in 2020.


2. Sentinel Copper Mine


The Sentinel Copper Mine is a copper mine owned by First Quantum Minerals. Located in North-Western, Zambia, the greenfield mine produced approximately 60.098Mt of ROM in 2020. It had an estimated production of 251.216 thousand tonnes of copper in 2020. The expected mine closure date is 2034.


3. Grootegeluk Mine


Located in Limpopo, South Africa, the Grootegeluk Mine is a coal mining project owned by Exxaro Resources. The mine is expected to operate until 2040.


The brownfield mine produced an estimated 54.383Mt of ROM in 2020. It had an estimated production of 28.864 mtpa of coal in the same year.


4. Grande Cote Project


The Grande Cote Project is a zircon mine located in Dakar , Senegal. Owned by Eramet, the greenfield project produced an estimated 46.747Mt of ROM in 2020.


The mine had an estimated production of 59 thousand tonnes of zircon in 2020. The Grande Cote Project will operate until 2045.


5. Khor Khuwair Limestone Quarry


Owned by Ras Al Khaimah Government, the Khor Khuwair Limestone Quarry is a limestone mine situated in Ras al-Khaimah, United Arab Emirates.


The ROM production at the mine produced was approximately 38.112Mt of ROM in 2020. It had an estimated production of 33.146 mtpa of limestone in 2020.


6. Sishen Mine


The Sishen Mine is an iron ore mining project in Northern Cape, South Africa. The brownfield project is owned by Anglo American Plc and is due to operate until 2039. The mine produced an estimated 36.22Mt of ROM in 2020. It had an estimated production of 25.353 mtpa of iron ore in 2020.


7. Kansanshi Mine


The Kansanshi Mine is a copper mine owned by First Quantum Minerals. Located in North-Western, Zambia, the brownfield mine produced approximately 34.423Mt of ROM in 2020. It had an estimated production of 221.487 thousand tonnes of copper in 2020. The expected mine closure date is 2044.


8. AGA Surface Operations


Located in North West, South Africa, the AGA Surface Operations is a gold mining project owned by Harmony Gold Mining.


The brownfield mine produced an estimated 32.441Mt of ROM in 2020. It had an estimated production of 107 thousand ounces of gold in the same year.

9. Moma Titanium Minerals Mine

The Moma Titanium Minerals Mine is a ilmenite mine located in Nampula, Mozambique. Owned by Kenmare Resources Plc, the greenfield project produced an estimated 27.19Mt of ROM in 2020.



The mine had an estimated production of 0.756 mtpa of ilmenite in 2020. The Moma Titanium Minerals Mine will operate until 2039.


10. Lumwana Copper Mine


Owned by Barrick Gold, the Lumwana Copper Mine is a copper mine situated in North-Western, Zambia. The mine is expected to operate until 2048.


The ROM production at the mine produced was approximately 26.88Mt of ROM in 2020. It had an estimated production of 125.191 thousand tonnes of copper in 2020.


Methodology:


This information is drawn from GlobalData’s mines and projects database, which tracks all operating and developing mines and projects globally. Verdict’s parent company GlobalData provides business information to 4,000 of the world’s largest companies.


https://www.mining-technology.com/marketdata/ten-biggest-producing-surface-mines-in-the-middle-east-and-africa-in-2020/

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Copper, nickel smelting subdued in August

The platform, which monitors about 90% of global copper and nickel smelting activity, said along with seasonal maintenance, there had been extended downtime as copper smelters waited for expected higher treatment and refining charges later this year.


It said there had been a significant reduction in activity in south central China, which was put down to recent flooding and power restriction directives.


The global dispersion index for copper smelting averaged 45.9, down from July's 48.2, with readings below 50 indicating less activity levels than average.


China averaged 44.6 in August, a little below July's 46.4.


However South America rose from 52.3 to 62 in August "as integrated operations look to take advantage of elevated copper prices".


The new global inactive capacity index for copper rose to 19.2, where a reading of zero would indicate 100% smelting capacity.


In nickel, SAVANT's global inactive capacity index rose to year-to-date high of 23.9 on August 31.


It said the index had been rising since late May, due to disruptions including flooding, strikes and civil unrest, and the strong stainless-steel demand had led to a drawdown of inventories on the Shanghai Exchange to record lows.


China and Indonesia's nickel pig iron activity decreased over August.


Marex global head of analytics Dr Guy Wolf said the more detailed analysis of the SAVANT data was starting to bear fruit.


"For example, our observation that the China Inactivity Index for copper is potentially a leading indicator of the arbitrage between domestic and international pricing is exciting, as this presents an opportunity for our users to monetise the information," he said.


"Similarly in North America, a user of the SAVANT platform would have been able to see that regional smelter activity has been well below average for much of the last 18 months, which together with snarled logistics networks, saw COMEX prices establish a record premium to those on the LME in late July."


https://www.mining-journal.com/copper-news/news/1417307/copper-nickel-smelting-subdued-in-august&ct=ga&cd=CAIyGjYwMWJjNmRlNzBlMWQ1MzU6Y29tOmVuOkdC&usg=AFQjCNExHpE_6Hr0pnYBNDvyXvISO8zJ-

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Alta Zinc Limited (ASX:AZI) Exploration Target Outlines Upside at Gorno

Exploration Target Outlines Upside at Gorno


Perth, Sep 8, 2021 AEST (ABN Newswire) - Alta Zinc Limited ( ASX:AZI ) ( FRA:8EE ) is pleased to announce an Exploration Target of between 17.4 and 22.0 million tonnes at a grade ranging between 8.5 and 10.4% zinc, 1.9 and 2.4% lead, and 19 and 23g/t silver. The Exploration Target lies wholly within the Company's granted Exploration Licence (EL) with the target area being within or adjacent to the extensive underground development that makes up the historical Gorno mine. The Exploration Target is in addition to and contiguous with the recently announced Mineral Resource estimate (MRE).The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 

The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.Geraint Harris, MD of Alta Zinc commented:"The development of our Exploration Target significantly leverages the knowledge synthesised during the last 18 months of exploration drilling and data analysis. The fact our significant MRE upgrade is surrounded by evidence of continuing mineralisation gives great confidence that we have an opportunity to add considerable scale to our Gorno Project without the need for any additional permitting, land acquisition or extension of our current exploration licence.Gorno has the geologic potential that is typical of world class Mississippi Valley deposits around the world. 

This Exploration Target is within close proximity to the existing historical underground development, offering both short-term opportunities to drill test from existing underground development, plus longer-term growth potential once our development footprint is extended during Project construction."The Exploration Target is made up of 13 separate but contiguous areas which surround the extensive production stopes and development drives of the Gorno mine. 

Four of the areas (1 to 4) lie to the west of the western fault in a downfaulted area, area 13 lies to the east of the Pezel Fault, whilst the remainder (5 to 12) lie between the two faults (Figure 1*). The exploration tonnage and grade ranges are listed in the link below.Basis for Exploration TargetThe Exploration Target is conceptual in nature but provides an estimate of the potential scale of extensional mineralisation within part of the surrounding EL area, and the impact this may have on the Gorno Project.It is the synthesis of our geological understanding of the Gorno mine environs, particularly the mineralisation geometry, host Metallifero Formation, and both mine and regional geology. It extrapolates potentially mineralised Metallifero Formation, a distance of approximately 250-500m along strike and dip from mineralised drill intersections, into extensional areas that have not been tested by drilling but where geological continuity is supported by geological mapping, structural interpretation or outlying drill hole intercepts of Metallifero Formation that suggest continuity. 

The Metallifero Formation is part of a conformable sequence of mostly limestone rocks that consistently hosts mineralisation and is present throughout the EL area, even when off-set by late-stage structural faulting.Exploration Activities CompletedThe work references an extensive geological database (Appendix A*) which in summary includes the following:- 1955 to 1978: underground development, mapping and diamond drilling by Societa Anonima Nicheli e Metalli Nobil (AMMI SpA),- 1979 to 1982: underground development and production, mapping and diamond drilling by Societa Azionaria Minerario-Metallurgica SpA (SAMIM),- 2015 to present: diamond drilling, mapping and fact checking of historical mapping, observations of exposed mineralisation within the underground development, and ground truthing surface mapping (published by both government and research/academic organisations).Proposed Exploration ActivitiesWith the aim to grow the Mineral Resource estimate and upgrade the resource category, portions of the Exploration Target areas 10 and 11 are currently being drill tested at Gorno. After this, the Company plans to drill in the areas 7, 8 and 12 within the next 12 months. The outcomes of this exploration, as well as the current MRE, will be integrated into a proposed Definitive Feasibility Study which the Company intends to commence in early 2022. Drilling of the other Exploration Target areas will continue in parallel with any prospective mine construction, development and production phases as the Company seeks to realise the full potential of the Mineral Resource estimate.Exploration Potential Outside of the Exploration Target AreaIn addition to the current Exploration Target, the ground immediately to the east termed "Pezel East", between the Pezel Fault and Grem Fault is highly prospective. 

There is geological reconnaissance data which indicates it hosts significant strike extents of mineralised Metallifero Formation however, there is currently insufficient drilling or definitive historical evidence for this area to be included in the Exploration Target, and it will be assessed further once more evidence is collected.Further exploration potential also exists in the down-dip extensions south and beyond Areas 6 and 9, termed "Zorzone Deeps", where there are clear observations of mineralisation in development walls on the 600 mRL level (Riso Parina) and mineralised intersections in nearby diamond drilling, but with insufficient exploration data at depth any estimate of an Exploration Target must await further exploration efforts.Continuity of mineralisation is also demonstrated east of the Grem Fault, in the stopes of the historical Fortuna workings, where high-grade mineralisation was mined, and a remnant historical reserve prepared by SAMIM remained at mine closure (early 1980s). This ground is contained within the Mining Licence application area but lies outside of the Company's granted EL. 

Therefore, a subsequent Exploration Target for the Fortuna extension areas will be considered once the ML is granted.*To view tables and figures, please visit:About Alta Zinc Limited

Alta Zinc Limited (ASX:AZI) (FRA:8EE) is an emerging ASX-listed exploration and development company focused on unlocking dormant value at the Gorno Project. Gorno is an historic high-grade zinc mine in industrialised Northern Italy, proximal to smelters and key infrastructure and with a track record of producing high quality clean concentrates to European Smelters.

Drilling of known brownfields high-grade targets is underway and aims to strengthen the current Resource inventory. Subsequent project development will leverage off the existing underground infrastructure, simple metallurgy and advanced technical studies to de-risk a future feasibility study. The Company also has a portfolio of other mineral exploration projects in northern Italy and Australia.


https://www.abnnewswire.net/press/en/106897/Alta-Zinc-Limited-(ASX-AZI)-Exploration-Target-Outlines-Upside-at-Gorno.html&ct=ga&cd=CAIyGjAxNGI2Yjc5ZjYzOTZjMDk6Y29tOmVuOkdC&usg=AFQjCNHGTy6CJ7PDTcxZgA8vWX0Jcc_GQ

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Aluminium prices reach decade high after Guinea coup

Aluminium prices have hit a decade high after Alpha Conde, president of the Republic of Guinea, was detained by special forces in the capital, Conakry. Guinea is the world’s second-biggest producer of the raw material bauxite, used to produce aluminium.


On Monday, the price of aluminium futures on the London Metal Exchange rose as much as 1.8%, to $2,775.50 per metric ton. This is after prices had surged this year due to a jump in demand coinciding with production cuts within China, as part of attempts to curb carbon emissions from heavy industry.


Aluminium is a crucial component in a range of products, from beer cans and cars to smartphones and renewable energy systems. Unrest within Guinea is putting further strain on the market as it supplies more than half of the ore imported by China, the top global producer of the metal. In the first seven months of this year, Guinea supplied China with 55% of its bauxite supply, according to analysts at ING.


Eric Humphery-Smith, an analyst at risk intelligence company Verisk Maplecroft, predicts that “operations will likely remain shuttered for the coming days and potentially weeks”.


“Miners now have little other option than to sit tight and await further clarity from the transitional authorities,” he said in a note to clients on Monday.


Guinea also holds some of the world’s highest-grade iron ore, which includes the giant Simandou deposit that has been the subject of a protracted legal battle. The removal of the long-tenured president from power may lead to numerous gold, iron ore, and bauxite projects in the country being subject to renegotiation. This could adversely impact the market for both metals, especially if turmoil in the country continues after the coup.


Shares in China Hongqiao, the world’s largest aluminium producer, which is part of a consortium developing part of the Simandou deposit, fell 4% in Hong Kong trading on Monday.


After the coup, the country’s borders were closed, and its constitution was declared invalid in the announcement read by army Colonel Mamady Doumbouya.


“The duty of a soldier is to save the country,” he said.


“The increased uncertainty around the new political regime in one of the world’s largest bauxite-producing countries may disrupt global commodity export flows and also raises the likelihood of export contracts renegotiation, which may put upside pressure on alumina and aluminium prices,” said analysts at JPMorgan.


Price recovery and the reinstatement of production lines will depend on whether a functional and amenable government comes into power in short order.


https://www.mining-technology.com/news/aluminium-prices-reach-decade-high-after-guinea-coup/

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CrossBoundary Energy to construct 13 MW hybrid solar power station for Eramet minsands mine in Senegal

Grande Côte Opérations (GCO), a subsidiary of the Eramet Group, has signed a Memorandum of Understanding with CrossBoundary Energy for the construction of a 13 MW hybrid solar power station with 8 MW battery storage. Dedicated to the Diogo industrial site (north-western Senegal) for the production of mineral sands, this solar power station is scheduled to be commissioned in early 2023. Its renewable energy will help improve GCO’s carbon footprint and reinforce its ISO 50001 approach.


“This is a first that reinforces the company’s commitment to the climate, in line with that of the Eramet Group, which has set itself the objective (Science Based Targets – SBT) of reducing the CO 2 emissions (scope 1 and 2) of its activities by 40% by 2035 (based on 2019).” CrossBoundary Energy will design, build and operate the plant, which will generate all the renewable energy for GCO through a 15-year distribution contract.


Guillaume Kurek, CEO of Grande Côte Operations, said: “The clean, renewable and available energy from this hybrid plant will contribute to GCO’s environmental and economic performance. The environmental value of the titanium and zircon raw materials that GCO produces will be positively impacted. This concrete commitment to low-carbon energy reflects the values and ambition of the GCO and Eramet Group teams to provide solutions to the vital climate challenge and to the living well together”.


Matthew Fredericks, Director of Business Development for Mining, CrossBoundary Energy, said, “We are excited to announce this MOU as the start of our long-term partnership with Grande Côte Operations Mineral Sands. CrossBoundary Energy’s flexible, fast, all-equity funded approach and implementation partner juwi’s international track record in hybrid power system construction for mines are the ideal combination to deliver this complex project. We look forward to getting to work alongside GCO’s team on the next phase.”


https://im-mining.com/2021/09/09/crossboundary-energy-construct-13-mw-hybrid-solar-power-station-eramet-minsands-mine-senegal/

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Excelsior Mining Provides Update on Gunnison Copper Project, Johnson Camp Mine and Exploration Properties

Phoenix, Arizona--(Newsfile Corp. - September 9, 2021) - Excelsior Mining Corp. (TSX: MIN) (FSE: 3XS) (OTCQX: EXMGF) ("Excelsior" or the "Company") is pleased to provide a comprehensive update on the Company, which includes an update on the Gunnison Copper Project, the intent to restart the Johnson Camp Mine and an announcement of Exploration and Development Properties, including the release of a Preliminary Economic Assessment on the Strong and Harris copper-zinc-silver deposit. All dollar values in this press release are in United States dollars.


Excelsior's President & CEO, Dr. Stephen Twyerould states, "We are very encouraged with some recent developments at the Gunnison Copper Project. Production flow rates have been challenged due to the impact of carbon dioxide gas but the Company has identified a process change that has demonstrated a 1000% improvement in flow rates in test wells. Full implementation of all changes to optimize fluid flows will require some additional time and capital to complete; however, the updated economics on the Gunnison Project incorporating reasonable assumptions for these changes shows the Project remains extremely robust. In addition, in the near term, the Company intends to supplement copper production by restarting operations of the historic Johnson Camp copper oxide open pits."


Dr. Twyerould continued, "Gunnison remains the flagship property for Excelsior; however, the Company has a robust portfolio of additional properties in Arizona, both within the existing permitted property boundaries and beyond. The Company has been preparing to bring these properties to the forefront alongside Gunnison as production ramps up. The Company has completed a preliminary economic assessment on its Strong & Harris copper-zinc-silver property that has demonstrated excellent economics for future development utilizing conventional mining methods. The Company is focused on maximizing the potential of all of its assets to generate additional long term shareholder value."


Gunnison


As previously disclosed, Excelsior's Gunnison Copper Project has experienced delays due to carbon dioxide gas bubbles reducing injection flows and preventing timely ramp-up to name-plate production. The gas bubbles are the result of the interaction of the weak acid injection with finite amounts of secondary calcite within the permeable fracture system.


Cycling periods of fresh water injection with acid injection and recovery has demonstrated sustained flow improvements on individual wells. For example, acid injection flow rates on individual test wells increased from lows of around 20 gallons per minute ("gpm") to sustainable highs around 200 gpm. Recovery flows also increased from around 10 gpm to sustainable recovery flows around 110 gpm. Both representing an approximate 1,000 percent increase in flow rates.


Until recently, the fresh water cycling has been focused on a central 5-spot of wells. Although not completely removed, the calcite appears to be dissolved enough for the wells to operate and flow sufficiently and as a result fresh water cycling has been moved to another 5-spot of wells to improve their fluid flows.


Excelsior believes the problem to be finite because as the calcite interacts with the acid it is dissolved and leaves the system. However, due to water conservation and evaporation capacity, individual well flushing with fresh water is not considered the optimal long-term solution.


The preferred path involves flushing with neutralized raffinate, which does not require additional water or evaporation infrastructure, however does require additional solution treatment infrastructure. The initial capital cost of this infrastructure is estimated at around $13 million ($45 million life of mine) and includes additional piping and pond modifications.


It is estimated operating costs will also increase by approximately $0.185/lb over the life of the mine due to the inclusion of one year of pre-production rinsing for all current and new wells, and the cost of operating the raffinate neutralization plant. Excelsior expects it will be able to ramp-up to name plate production once the installation and application of this infrastructure and pre-production wellfield conditioning is completed. Excelsior is in process of preparing an updated technical report on the Gunnison project (the "Updated Technical Report") that will update for these developments. Based on initial modelling, at $3.50/lb copper prices, the Gunnison Project would have an after tax NPV (7.5% discount rate) of $983 million and an IRR of 36%. The Company is also exploring additional options to accelerate the removal of CO 2 , potentially at significantly lower capital and operating costs.





https://www.juniorminingnetwork.com/junior-miner-news/press-releases/560-tsx/min/106347-excelsior-mining-provides-update-on-gunnison-copper-project-johnson-camp-mine-and-exploration-properties.html&ct=ga&cd=CAIyGjAxNGI2Yjc5ZjYzOTZjMDk6Y29tOmVuOkdC&usg=AFQjCNHI7wlQ5iQV0UBfecM-DQ1Yen5Se

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MegaWatt Lithium and Battery Metals : Completes Fieldwork at Arctic Fox and Isbjorn Rare Earth Element Properties, Australia - Assays Pending

VANCOUVER, BC, Sept. 9, 2021 /PRNewswire/ - Megawatt Lithium and Battery Metals Corp. (CSE: MEGA) (FSE: WR20) (OTC PINK: WALRF) (the "Company" or "Megawatt") is pleased to announce that it has completed its field reconnaissance and sampling program at the Arctic Fox and Isbjorn properties in the Northern Territory, Australia. The Arctic Fox and Isbjorn properties are located in the Northern Territory in regions prospective for REEs, especially neodymium and praseodymium, complemented by supportive mining infrastructure. Arctic Fox is contiguous and along strike from the world-class Nolans Bore REE project, which is set for commissioning in mid-2022 and has a JORC Compliant Mineral Resource. Meanwhile, Isbjorn is contiguous to the Charley Creek REE project. The Artic Fox tenement covers 785.39 km2 and the Isbjorn tenement covers 650 km2.


The regional geology of the Isbjorn tenement is a large scale anticline with quartzites and gneisses forming dip-slopes and rugged ranges on the southern edge of the tenement. The central core of the anti-form is generally a mafic to intermediate intrusive, weathering to onion skin rounded inselbergs where exposed north of the tenement in the flat plain. At Arctic Fox, the ranges of which Mt Finnis is part, are gneisses and high grade metamorphic rocks with zones of complete melting resulting in massive mafic to intermediate magmatic rocks.


Auger sampling was taken from multiple auger holes from below 400mm making up a 15 to 20kg minus 5mm sample. Stream sediments were taken for the active portion of channels and sieved to minus 5mm making up approximately 15 to 20kg of sample. These will be concentrated using a panner and then the magnetic fraction removed by a magnet prior to assay. The samples are expected in Perth in the next week or so and will and will be submitted to ALS for analysis.


David Thornley-Hall, CEO of Megawatt, comments: "We look forward to reviewing the results of our sampling filed work at our REE projects in the Northern Territoriesl. The data review will bring us one step closer to defining a drill program on the property."


Qualified Person


View original content to download multimedia: https://www.prnewswire.com/news-releases/megawatt-completes-fieldwork-at-arctic-fox-and-isbjorn-rare-earth-element-properties-australia---assays-pending-301372233.html


SOURCE MegaWatt Lithium and Battery Metals Corp.


https://www.marketscreener.com/quote/stock/MEGAWATT-LITHIUM-AND-BATT-110762940/news/MegaWatt-Lithium-and-Battery-Metals-Completes-Fieldwork-at-Arctic-Fox-and-Isbjorn-Rare-Earth-Eleme-36385716/&ct=ga&cd=CAIyGjE0ZWYzM2IyYjQyY2VlNzA6Y29tOmVuOkdC&usg=AFQjCNHcSBIXHcQpUImKu0LwfJHmGuEcH

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Steel

Fossil-free value chain for iron becoming reality

Euromines member LKAB has partnered with SSAB and Vattenfall to create HYBRIT, a joint venture company that is now the first in the world that produces fossil-free steel. In July 2021, SSAB Oxelösund rolled the first steel produced with LKAB iron ore using HYBRIT technology, i.e., reduced by 100% fossil-free hydrogen instead of coal and coke, with good results. The steel is now being delivered to the first customer, the Volvo Group. The trial delivery is an important step on the way to a completely fossil-free value chain for iron and steelmaking and a milestone in the HYBRIT partnership between SSAB, LKAB and Vattenfall.


The HYBRIT, Hydrogen Breakthrough Ironmaking Technology, was created in 2016, with the aim of developing a technology for fossil-free iron and steelmaking. In June 2021, the three companies were able to showcase the world's first hydrogen-reduced sponge iron produced at HYBRIT's pilot plant in Luleå. This first sponge iron has since been used to produce the first steel made with this breakthrough technology.


'Industry and especially the steel industry create large emissions but are also an important part of the solution. To drive the transition and become the world's first fossil-free welfare state, collaboration between business, universities and the public sector is crucial. The work done by SSAB, LKAB and Vattenfall within the framework of HYBRIT drives the development of the entire industry and is an international model', says Minister of Trade and Industry of Sweden Ibrahim Baylan.


European mining industry will be decisive for a transition to a Low-Carbon society, it has adopted ambitious carbon management policies and targets. Work to reduce, eliminate and offset emissions in operations includes a wide variety of strategies such as transitioning to electric vehicles, utilising advanced exploration technologies and optimising ore extraction.


'It's a crucial milestone and an important step towards creating a completely fossil-free value chain from mine to finished steel. We've now shown together that it's possible, and the journey continues. By industrializing this technology in future and making the transition to the production of sponge iron on an industrial scale, we will enable the steel industry to make the transition. This is the greatest thing we can do together for the climate,' says Jan Moström, President and CEO of LKAB.


'The first fossil-free steel in the world is not only a breakthrough for SSAB, it represents proof that it's possible to make the transition and significantly reduce the global carbon footprint of the steel industry. We hope that this will inspire others to also want to speed up the green transition,' says Martin Lindqvist, President and CEO.


The goal is to deliver fossil-free steel to the market and demonstrate the technology on an industrial scale as early as 2026. Using HYBRIT technology, SSAB has the potential to reduce Sweden's total carbon dioxide emissions by approximately ten per cent and Finland's by approximately seven per cent.


https://www.marketscreener.com/news/latest/Fossil-free-value-chain-for-iron-becoming-reality--36365925/&ct=ga&cd=CAIyGmM4M2EyMmUwMWZlNTViZGM6Y29tOmVuOkdC&usg=AFQjCNHxMOAYFMPX_9hwh_nNzik2YMAnb

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Is Posco (PKX) a Great Value Stock Right Now?

Posco is a stock many investors are watching right now. PKX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PKX has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.54.

Finally, investors will want to recognize that PKX has a P/CF ratio of 3.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.63. Over the past 52 weeks, PKX's P/CF has been as high as 5.64 and as low as 3.25, with a median of 4.55.

These are just a handful of the figures considered in Posco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PKX is an impressive value stock right now.


https://www.zacks.com/stock/news/1793507/is-posco-pkx-a-great-value-stock-right-now&ct=ga&cd=CAIyGjJlNmE2MjU0MDFmN2Y2Mjg6Y29tOmVuOkdC&usg=AFQjCNFy_LKmt-oRWhJMgrAFUYboNTGU3

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Iron Ore

Brazil’s Vale SA launches self-driving trucks at Carajas iron mine

Vale SA, a Rio de Janeiro-headquartered Brazilian multinational mining corporation and logistics services provider, had issued a statement later this week saying that the largest producer of iron ore and nickel around the globe had started off using autonomous driving trucks for the first time at its Carajas iron mine, Vale’s largest iron ore mining operation, remarking a landmark event in uses of driverless technology.


On top of that, followed by the announcement, speaking with the reporters, Vale SA’s executive head of autonomous technology program, Pedro Bemfica, was quoted saying that the Brazilian miner had been expecting to ramp up productivity and safety by capitalizing autonomous trucks to haul iron ores, as the mining industry megalith continues to expand the use of its self-driving technology.


Apart from that, Vale SA had added in a statement that the Rio de Janeiro-headquartered miner had six autonomous driving trucks currently operational at Carajas complex, which are roughly twice as tall as a normal truck and more than three-fold wide of a traditional truck, while Vale’s colossal autonomous driving trucks could carry as many as 320 tons of iron ore at a single instance.


Vale SA begins to use driverless trucks at Carajas iron ore mine


Concomitantly, adding that the largest logistics services provider in Brazil would add four additional driverless trucks at its fleet by end-2021, Vale SA was quoted saying in the statement that its gargantuan self-driving trucks would continue to operate at Carajas iron ore complex alongside 120 normal off-road vehicles.


In tandem, citing an out-and-out optimism over Vale SA’s latest venture to use autonomous trucks for mining purposes that in effect could trim fuel consumption by roughly 5 per cent and help Vale SA’s cause to put a kibosh on greenhouse gas emissions, Bemfica said, “ The principle objective is really to bring safety.


We launched this technology in trucks with the objective of removing people from inherent risk”.


https://www.financial-world.org/news/news/business/8261/brazils-vale-sa-launches-selfdriving-trucks-at-carajas-iron-mine/&ct=ga&cd=CAIyGmM4M2EyMmUwMWZlNTViZGM6Y29tOmVuOkdC&usg=AFQjCNFBnTvh_UUhL8dlYkgCYiSLZZ-NH

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ERG’s BAMIN signs pact with Brazil Government to complete and operate FIOL railway

Eurasian Resources Group (ERG) says its wholly-owned Brazilian subsidiary, BAMIN, has signed a concession agreement with the Brazilian Federal Government to complete and operate a section of the FIOL (East-West Integration) railway in the country.


BAMIN will advance the construction works, which until recently were carried out by the state-owned railway engineering and construction company Valec.


The sub-concession has been granted for a 35-year period, which includes an allowance of five years for the construction of the railway and 30 years for its operation. BAMIN’s investment into the railroad and the rolling stock will amount to around BRL3.3 billion ($683 million).


In April 2021, BAMIN won the auction on the B3 (São Paulo Stock Exchange) to complete and operate the first 537 km stretch of the FIOL. The concession agreement has now granted BAMIN 120 days to evaluate the progress of the construction and other related works. This preliminary phase precedes the preparation of a plan to resume the construction, which is scheduled for the second half of 2022.


Tarcio Gomes de Freitas, Minister of Infrastructure of Brazil, said: “The importance of this infrastructure project in the state of Bahia cannot be overstated. The project is very well structured and includes an iron ore plant, a railway and a seaport. The railway, which is undergoing construction, will serve the mining industry, as well as the agricultural sector, which is growing at an unprecedented pace, particularly in the west.”


BAMIN has already hired professionals in the rail industry to oversee the management of the FIOL railway. BAMIN will also leverage ERG’s international expertise as the largest transport operator in Central Asia with extensive experience in rail transportation, ERG says. Each year, ERG transports over 50 Mt of freight using 10,000 vehicles, while also maintaining and repairing 2,500 wagons and over 1,000 locomotives.


Benedikt Sobotka, CEO of Eurasian Resources Group, said: “All across the globe, railways play a crucial role in urban development, enabling people to gain access to new opportunities. In Brazil, we are confident that FIOL will act as an important connecting point between regions, cities and people, contributing to economic growth, and creating a strong link between the west and the east of the country. The logistics and exportation corridor that BAMIN will create will transport millions of tonnes of iron ore, agricultural products, as well as other goods.”


With the resumption of construction, the project is expected to boost the country’s economic growth at both the federal and the local level: FIOL will strengthen the rail network across 20 municipalities in Brazil, while also boosting foreign trade, ERG says.


BAMIN plans to install over 30 loading stations along the route, creating opportunities for regional producers, enhancing production chains, and helping establish new businesses.


Once completed, FIOL will be able to carry 60 Mt/y of freight, with BAMIN’s products accounting for a third of this capacity. More than 40 Mt of cargo will be made available for other businesses in both the mining and agricultural sector, as well as other industries in the Bahia region.


ERG said: “The importance of the FIOL railway cannot be overstated, as the railway will be part of an integrated logistics project that will connect the Pedra de Ferro mine in Caetité with the Porto Sul, currently under construction in Ilhéus, Bahia. Following the commencement of commercial operations in January 2021, the Pedra de Ferro Mine is expected to produce 1 Mt by the end of this year. Once the South Port and FIOL are completed (expected in 2026), the mine should produce 18 Mt of iron ore per year.”


Eduardo Ledsham, CEO of BAMIN, said: “The Pedra de Ferro mine, Porto Sul, and FIOL projects are an important milestone for the country’s economic development, and a source of pride for the Bahia State and all Brazilians. We are creating a new logistics corridor to integrate the west with the east of Brazil, creating a new, important exportation pathway.


“The state of Bahia will occupy a new and important place in the national economy, becoming the third largest iron ore producer in the country, generating wealth and prosperity, while also increasing the population’s income and improving the quality of life.”


https://im-mining.com/2021/09/08/ergs-bamin-signs-pact-with-brazil-government-to-complete-and-operate-fiol-railway/

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Rio played down Australian heritage damage at inquiry - Aboriginal group

A spokesman for Rio Tinto said the company declined to comment.


News emerged this year that Rio forerunner Hamersley Iron failed to protect artefacts belonging to the Wintawari Guruma Aboriginal Corporation (WGAC) that had been salvaged from its Marandoo iron ore project including 18,000-year-old evidence showing how people lived during the last Ice Age.


Those and other artefacts were thrown in a Darwin rubbish heap.


The group's complaint centres on a statement by Rio's head of Indigenous Affairs, Brad Welsh, who last month told the Juukan Gorge Inquiry: "We have not identified any evidence that Rio Tinto directed any disposal of artefacts," according to the submission.


The group said such comments showed Rio's "continued lack of regard and respect for Eastern Guruma cultural heritage".


"The comments clearly sought to downplay importance of the cultural material disposed and lessen Rio's involvement and responsibility for what occurred," the group said in its submission.


Rio Tinto operates six of its 16 mines and three rail lines on the group's traditional lands.


Last year, Rio Tinto triggered a public outcry with the destruction of rock shelters in Western Australia that showed human habitation dating back 46,000 years, during iron ore mining operations.


Welsh told the inquiry that the world's biggest iron ore miner had not been able to put together a "complete picture" of the potential cultural or archaeological value of what was discarded, given the passage of time, and without knowing if its records were complete.


"However, we do recognise that decisions made on the management of these materials may not have adequately considered archaeological and cultural values in the analysis completed," he said, adding that current standards of analysis would be more comprehensive.


(Reporting by Melanie Burton; Editing by Robert Birsel)


https://www.marketscreener.com/quote/stock/RIO-TINTO-PLC-9590196/news/Rio-Tinto-played-down-Australian-heritage-damage-at-inquiry-Aboriginal-group-36381832/&ct=ga&cd=CAIyHDI2NTRiNThiMzY3NzBiODU6Y28udWs6ZW46R0I&usg=AFQjCNFLxs9o9qLmYkHpiHXTKrXvqQwfz

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Coal

Ind-Ra: High coking coal prices to impact Indian mills’ gross margins

Monday, 06 September 2021 10:52:16 (GMT+3) | Kolkata


High coking coal prices are likely to impact gross margins of Indian steel mills, a sector report of India Ratings and Research (Ind-Ra) said on Monday, September 6.


Coking coal prices were up five percent month on month and 103 percent year on year to $222/mt in mid-August.


"Australian coking coal is receiving support from strong demand from Asian countries, ex-China. The limited availability of prompt coking coal cargoes for near-term deliveries due to logistical issues, including freight and container unavailability and high freight rates, could support coking coal prices over the near term," the Ind-Ra report said.


India's coking coal imports at 5.76 million mt in July this year were up 65 percent month on month and 114 percent year on year.


"While steel production has improved, domestic mills had postponed procurements due to higher coking coal prices. However, lower inventories prompted steel producers to import higher volumes in July 2021. A key trend is the preference of Indian blast furnace producers for better grades of coking coal to maximise production yield, considering that freight costs are the same, irrespective of the grade, amid container shortages and higher freight costs,” the report said.


https://www.steelorbis.com/steel-news/latest-news/ind_ra-high-coking-coal-prices-to-impact-indian-mills-gross-margins-1214009.htm&ct=ga&cd=CAIyGjBlMDRkYTQxNmY2YWRlMjY6Y29tOmVuOkdC&usg=AFQjCNFiOWzZOaPAexkkEz2FFWYunpEJK

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Steel, Iron Ore and Coal

JSW Steel surrenders iron ore mine lease in Odisha

JSW Steel surrendered one of the four iron ore mines it had won through competitive bidding in Odisha last year due to commitment of high premium for poor quality ore.


The company, which makes 14 million tonnes per annum (mtpa) of steel without any captive iron mine, bid aggressively and won four mines in Odisha with a long-term plan to set up 12 mtpa greenfield steel plant entailing an investment of ₹50,000 crore.


The Gonua iron ore block, which is being surrendered by JSW Steel, was won with the committed premium of 130 per cent and has estimated reserves of 118 million tonnes (mt). Currently, the company mines about 0.5 mtpa.


The company is believed to have paid stamp duty of ₹110 crore and performance guarantee of about ₹50 crore for the Gonua mine, sources said.


With iron prices shooting through the roof, JSW Steel has to pay 130 per cent premium to the State Government for every tonne of ore mined. Moreover, as per the agreement signed, the company has to mandatorily mine a minimum quantity of iron ore from the mine annually to ensure assured revenue for the State government.


In a letter written to Directorate of Mines last month, JSW Steel said, “We intend to surrender the entire area of Gonua iron ore mining lease under Rule-12 of the Mineral Concession Rules, 2016 with effect from August 12, 2022 and we will submit the final mine closure plan before the Indian Bureau of Mines (IBM).”


The company had signed the mining lease deed last June and commenced mining operation in July, 2020.


‘Economically unviable’


The mining operation has become economically unviable due to high shale in bottom benches, low grade mineral in top benches and serious logistics issues due to space constraints, said the letter.


JSW Steel, which has enhanced its production capacity to 18 mtpa now, has three mines in Odisha including Nuagaon iron ore with reserves of 793 mt, Narayanposhi iron ore block with 190 mt deposits and Jajanga block with reserves of 39.42 mt.


Several successful bidders of working mines, whose mining leases expired last March, have not started production even after 7-8 months of auction and execution of mining leases in their favour.


Many of the successful bidders who have started production, have not maintained the production and dispatch quantity up to the level required under Rule 12A of the Mineral Concession Rule, 2021.


As part of pre-legislative consultation draft proposed to the State government and stakeholders, the Centre has mandated successful bidders to make payment equivalent to the revenue share and other statutory levies that would have been payable at the prescribed level of minimum production/dispatch targets on quarterly basis.


“In case lessee does not maintain minimum dispatch prescribed in the rule for three consecutive quarters, State government may terminate such lease after giving a reasonable opportunity of being heard,” the draft Bill said.


Of the 46 operating mines, whose leases expired last March, 24 mines are in Odisha.


https://www.thehindubusinessline.com/companies/jsw-steel-surrenders-iron-ore-mine-lease-in-odisha/article36303014.ece&ct=ga&cd=CAIyGmM4M2EyMmUwMWZlNTViZGM6Y29tOmVuOkdC&usg=AFQjCNEhb2BIehYSxq5IQiLBWfthVR32_

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Rourkela Steel Plant plans to increase production capacity

The Rourkela Steel Plant (RSP) is planning to increase its annual hot metal production capacity from the current level of 4.5 to 4.855 million tonne per annum (MTPA), an official release said.


The crude steel production at its plant in Odisha's Sundargarh district will also go up from 4.2 MTPA to 4.85 MTPA and saleable steel production from 3.880 to 4.325 MTPA, the release issued on Saturday said.


The new units that have been planned as part of the project are a coke oven battery, a steel melting shop, oxygen plant and adoption of technological measures for enhancing capacity of the existing blast furnaces, it said.


A proposed normalising furnace with 0.3 MTPA capacity will also be installed inside the new plate mill to cater to niche market segments.


The RSP is planning to utilise natural gas in various units and it has planned a pipeline network, which will minimize the use of fossil fuels like coal and make the steel-making process cleaner and greener.


The proposed projects, which will be taken up within the existing boundary of the RSP, are designed with state-of-the-art environment-friendly technologies based on the concept of zero discharge.


Different types of air pollution control systems will be installed to minimise the air pollution and no cutting of trees will be required.


The proposed expansion will not only enhance the production capacity of the steel plant but will also further strengthen the economy of the region and improve the quality of life of people residing in and around Rourkela.


Also Read: India records Q1 FY22 GDP growth at 20.1% on low base, improved manufacturing


Also Read: Amitabh Bachchan to launch his own NFT collection in November


https://www.businesstoday.in/latest/economy/story/rourkela-steel-plant-plans-to-increase-production-capacity-305969-2021-09-05&ct=ga&cd=CAIyGmI1MWRkN2RlMGJjN2Y2NDM6Y29tOmVuOkdC&usg=AFQjCNGedFOwCnhYaUxDuSgK7nRFSn59Z

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Boris Johnson must confront the climate crisis head on and bury plans for a new coal mine

Boris Johnson must confront the climate crisis head on and bury plans for a new coal mine


Instead of backing plans to build a new coal mine in Cumbria that will make the climate emergency worse, it should put its focus into cutting emissions and creating green jobs.


As the pressure mounts to leave fossil fuels in the ground, proposals for a new coal mine in Cumbria are a litmus test of the government’s commitment to ending our dangerous reliance on coal, gas and oil.


Last month’s report by leading UN climate scientists was particularly stark.


Billed as a “code red for humanity”, by UN Secretary General António Guterres, it warned that the world is racing towards catastrophic climate change, which will only be limited by rapid action to cut greenhouse gas emissions.


Boris Johnson, who will be hosting November’s critical international climate summit in Glasgow, described it as “sobering reading”, saying we had to “consign coal to history and shift to clean energy sources.”


But the prime minister needs to look closer to home when calling for action. Despite the rhetoric, UK coal is far from dead.


On Tuesday, a public inquiry starts into plans for a new coal mine off the coast of Whitehaven in Cumbria. If it’s given the go-ahead, the mine could produce coal for the steel industry until 2049.


At a time when there can be no delays in cutting emissions, we’ll be hitting the accelerator, when we should be applying the brake


The government’s own climate advisors have warned that the mine would increase global emissions, making it harder for us to stop climate change. So, at a time when we have been told there can be no delays in cutting emissions, we’ll be hitting the accelerator, when we should be applying the brake.


Indeed, the government was initially willing to let the mine go ahead after Cumbria County Council granted planning permission in October last year. It was only after a huge public and international outcry that they reluctantly agreed to “call in” the coal mine and hold a public inquiry – with the government ultimately deciding whether or not the mine is built.


Friends of the Earth will be a main participant in the public inquiry, where we will argue strongly against the application.


The mine would produce coking coal exclusively for the steel industry, currently responsible for around 7 per cent of total global carbon emissions. Although we will still need steel – for example to build wind turbines, trains and buses – it has to be produced in a far less damaging way.


The good news is things are rapidly changing. Swedish steel manufacturer HYBRIT is already making steel without using coal – using fossil-free electricity and hydrogen instead – and plans full commercial production of the “green steel” in 2026.


If approved the Cumbrian mine would be opening just as European steel makers, its main target market, are moving out of coal. Experts say we could completely displace coal use for steel making by 2035 – just six years after the mine reaches full production.


The reality is we don’t need new coal mines. The International Energy Agency, an intergovernmental body, says there’s enough coking coal in mines already operating to supply the global steel industry until 2050.


But what West Cumbria does need is jobs. Many local people support the proposals, not because they want a new coal mine, but because they believe it’s the only tangible prospect of new employment in West Cumbria.


However, there are alternatives. Cumbria Action for Sustainability has calculated that 9,000 green jobs could be created in the county in the next 15 years, including 4,500 in West Cumbria. These would be in renewable energy, waste management, retrofitting buildings and green transport. On top of this additional jobs could be created in sectors that we have come to value more in the last 18 months, such as health and social care.


It shouldn’t be jobs or the environment. It can and must be both. That’s what the government needs to prioritise - working with local councils and others to create the employment that will help us deal with the climate crisis and create a society in which people’s basic needs are met.


Instead of backing plans that will make the climate emergency worse, it should put its focus and our money into cutting emissions and creating the green jobs that building a clean future will bring.


And it’s not just coal that should remain in the ground - oil and gas must be left there too. This is why the UK government must pull the plug on its support for a huge new gas project in Mozambique with £900 million of taxpayers’ money, as well as rejecting plans to allow a new Cambo oil field off the Shetland Isles.


The next few months are crucial for the future of our planet, as well as Boris Johnson’s legacy. Can he encourage, cajole and force world leaders to respond to climate warnings that are flashing red, and make the big and urgent cuts in climate emissions that are now long overdue?


But action has to begin at home. The prime minister must end the nation’s fossil fuel fixation. And if he’s serious about consigning coal to history, the Cumbria coal mine cannot go ahead.


https://www.politicshome.com/thehouse/article/boris-johnson-must-confront-the-climate-crisis-head-on-and-bury-plans-for-a-new-coal-mine&ct=ga&cd=CAIyGjc4YzcxMDA3MjAzOTRjMmU6Y29tOmVuOkdC&usg=AFQjCNFb_AGCwfPhZOe1k8btl8MaCzGhs

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Iron ore tumbles over 5% as China port stocks hit 4-month peak

Iron ore prices tumbled more than 5% on Monday, with the Dalian benchmark hitting its lowest in seven months, on rising portside stocks of the steelmaking ingredient in China due to increased shipments and weak domestic demand.


The most-traded iron ore for January delivery on China's Dalian Commodity Exchange dropped as much as 5.6% to 731 yuan ($113.26) a tonne, its weakest since Feb. 4.


Iron ore's most-active October contract on the Singapore Exchange shed as much as 5.1% to $135.70 a tonne, its lowest since Aug. 24.


China aims for iron ore output boost of 100mn tonnes by 2025


Imported iron ore stocked at ports in China, the world's top steel producer, climbed to 131.40 million tonnes last week, the highest since end-April, SteelHome consultancy data showed.


Spot iron ore in China tumbled to $145.50 a tonne on Friday, the weakest since Aug. 23, from $156 a week earlier, SteelHome data showed.


Iron ore prices have fallen under the weight of "a monstrous 4-million tonne" increase in weekly shipment from Australia in the last week of August, according to Atilla Widnell, managing director at Singapore-based Navigate Commodities.


Chinese iron ore producers' plan to increase their domestic output by more than 100 million tonnes between 2021 and 2025 also added some pressure on prices, he said.


Some industry data showing China's weekly steel output had increased may have also prompted the continued iron ore sell-off, Widnell said.


"Increasing steel output occasionally has a counter-intuitive effect on iron ore prices given that retail investors sell the feedstock as they expect steel margins to compress," he said.


In sharp contrast, other steelmaking ingredients extended their record-setting rallies on supply concerns.


Dalian coking coal jumped 7.7% to a life-high 2,818 yuan a tonne. Coke climbed 4.8%.


Rebar on the Shanghai Futures Exchange rose 1.5%, while hot-rolled coil gained 1.8%. Stainless steel gained 6.8% to hit a five-week high.


https://www.brecorder.com/news/40118266/iron-ore-tumbles-over-5-as-china-port-stocks-hit-4-month-peak&ct=ga&cd=CAIyGjc4YzcxMDA3MjAzOTRjMmU6Y29tOmVuOkdC&usg=AFQjCNFY7im09E_BnDdsMlMCP-jAY8d5e

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Vietnam's steel sales increase due to exports

Steel enterprises have boosted exports while facing difficulties in domestic consumption due to the COVID-19 outbreak, according to the Vietnam Steel Association (VSA).


Vietnam's steel exports reached 658,207 tonnes in the first seven months of this year, an increase of 5.96 per cent month on month. Photo vinanet.vn


The association said steel production in July reached nearly 2.4 million tonnes, down 6.48 per cent compared to the previous month, while steel consumption was about 2.1 million tonnes, the same volume in June and up 7.4 per cent year on year.


Of which, steel exports reached 658,207 tonnes, an increase of 5.96 per cent month on month, and 55 per cent year on year.


Trang Thu Ha, chief of VSA Administrative Office, said the domestic steel industry has faced difficulties in production and sales due to the impact of the COVID-19 pandemic and the weather.


Construction work was temporarily postponed in the first seven months of the year, leading to difficulties in the domestic steel market, especially in the southern region.


Construction steel sales in the first seven months increased by 6.4 per cent year on year, of which, exports rose by 25.4 per cent.


Meanwhile, hot rolled coil production reached more than 590,000 tonnes in July, down by 1.21 per cent month on month but increased by 85.4 per cent year on year. Consumption of this product reduced by 6.8 per cent to 559,487 tonnes but this figure surged by 82.7 per cent over the same period in 2020.


Consumption of colour-coated metal sheets in July reached 428,084 tonnes, down 6.58 per cent month on month, though up 18.8 per cent year on year. This figure included 300,404 tonnes for export, up 84.2 per cent over the same period in 2020.


Hoa Sen and Nam Kim Group were leading in steel consumption in the first seven months. Hoa Sen sold nearly 1.1 million tonnes, holding 36.7 per cent of the domestic market share. Nam Kim sold more than 498,000 tonnes, ranking second with 16.8 per cent of market share.


The Hoa Phat Group's galvanised sheet and steel pipe products also recorded a strong increase because of the recovery in demand of those products in the US and Europe.


Due to the difficulties in the steel product consumption in the domestic market, steel enterprises have promoted steel exports to maintain production.


Ha said that in 2020, the domestic steel production industry maintained operations due to good control of the pandemic.


However, with the complicated development of the outbreaks this year, many provinces and cities have been implementing social distancing measures and even had to stop temporarily many activities, weakening the domestic market demand in June and July.


“Therefore, the association forecasts that steel consumption in the third quarter will not be better. The business result in the fourth quarter will also depend on the pandemic prevention and control," Ha told the Vietnam News Agency.


With the complicated development of the pandemic in the southern provinces and cities, the association expects that steel production and consumption by year-end would continue to see difficulties, she said.


However, "domestic consumption and steel exports could recover further by the end of this year if the pandemic is controlled well at home and abroad," she said.


Meanwhile, the Ministry of Industry and Trade has requested the association and enterprises producing and exporting iron ore, iron and steel to review input materials for reducing production costs and selling price in the process of stabilising steel production and the domestic steel market at present.


Source: Vietnam News


Steel prices hit new high Steel has hit a new high after a series of rapid price increases from May through June 2021 when they increased by more than 50 per cent compared to the beginning of the year.


https://vietnamnet.vn/en/business/vietnam-s-steel-sales-increase-due-to-exports-772458.html&ct=ga&cd=CAIyGjM3MGE0NDQ5NmRhZDg1YmI6Y29tOmVuOkdC&usg=AFQjCNELNoL1wysWXnoXn2Nj19KjrN9oq

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NMDC targets iron ore output of 44mt in FY 2022, draws up a capex of ₹3,750 crore

NMDC Limited is planning a capital expenditure of ₹3,750 crore and iron ore output of 44 million tonnes (mt) duringFY22, up from 35 MT achieved during the Covid-hit 2020-2021.


The State-owned iron ore mining major has registered strong volume growth and revenue growth during the first five months of this fiscal ended August 2021 and expects to sustain this growth momentum.


“We have targeted iron ore output of 44 million tonnes this fiscal. And we are drawing up a big capex plan so that we can achieve a target of 100 million tonnes per annum of iron ore output within 4-5 years,” Sumit Deb, CMD, NMDC, said at an investor meet.


NMDC logs record iron ore output in August


“NMDC, which is setting up a forward integration Nagarnar Iron and Steel Plant in Chhattisgarh, is targeting the commissioning of the plant in late Q3 or early Q4. Simultaneously, we are planning to start the coke oven unit,” Deb said.


NMDC has planned a capex of ₹3,750 crore in FY 2022 and a large chunk of it, ₹2,150 crore, is for the 3 million tonnes per annum (mtpa) Nagarnar Steel plant and the rest, ₹1,600 crore for other projects including the slurry pipeline ( ₹250- ₹300 crore) and ₹200 crore for the third trading plant at Kirandul with 12 mtpa.


“Apart from that we will be spending some money in the coal blocks, which are in the nature of strategic payments,”Amitava Mukherjee, Director, Finance, said.


“The slurry pipeline is supposed to come up by Q3 of 2023. We have already awarded ₹1,000 crore contract to L&T for laying of the pipeline. The work is underway.”


Demerging steel business


“The NMDC management is in the process of demerger of the steel business into a new company. And once it is demerged, it will have a mirror shareholding of NMDC where the Government of India would own 60.38 per cent of the shares of the new steel company. Thereafter the sales of those shares are within the jurisdiction of the Ministry of Finance or DIPAM. The NMDC management is not involved in that share sale except for the fact we would be participating in the various road shows. But the actual disinvestment through the sales would be done by the Ministry of Finance that is DIPAM,” the company said.


“The revised cost estimate for the steel plant is ₹22,000 crore. We have already spent around ₹18,700 crore so anything between ₹2,500-3,000 crore is still left over,” the company said.


The Donimalai pellet plant will start contributing to the topline and bottom line from Q4.


And the company expects that the coal mines will start hopefully from Q3 or Q4 but the sale could take couple of more quarters.


https://www.thehindubusinessline.com/companies/nmdc-targets-iron-ore-output-of-44mt-in-fy-2022-draws-up-a-capex-of-3750-crore/article36316552.ece&ct=ga&cd=CAIyGmM4M2EyMmUwMWZlNTViZGM6Y29tOmVuOkdC&usg=AFQjCNEuA2bAqCbeH9_zaQebIcLBvZ8IC

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Steel stocks rally on iron ore price falls, Q3 outlook

Shares in South Korean steelmakers rose sharply in active trade on Tuesday, on the prospect that the declining iron ore price and Chinese rivals' output cuts would boost their earnings sharply in the current quarter, alongside growing demand ahead of the year-end.


The price of iron ore, the raw material for steel production, has tumbled by almost 40% from its peak reached in early May, hit by concerns about reduced demand from China. The Chinese government announced plans to curb steel production, in tandem with its decision to cut carbon emissions significantly by 2035.


The KRX steel index rose 2.82% to 2,075.82 on Tuesday in the heaviest trade since July 19. It bucked the broader market Kospi which dipped 0.50% to 3187.42.


Small-sized steel companies led the pack. Kyeong Nam Steel Co. skyrocketed 20.25%, with Finebesteel up 10.76%.Daehan Steel surged 10.02%, and KG Dongbu Steel climbed 5.65%. SeAH Steel and Dongkuk Steel gained 3.54% and 3.52%, respectively.Their bigger rivals POSCO gained 3.30%, with Hyundai Steel up 4.52%.The benchmark Chinese spot price for Australian iron ore was quoted at $142.1 per metric ton as of Sept. 3, marking a 20% decline from a month earlier, according to NH Investment & Securities Co. Australia is China's main source of iron ore imports.On top of the reduced burden of raw material costs, steelmakers are expected to enjoy strong inventory demand in September and October ahead of the year-end.Reflecting expectations about higher selling prices of steel products, Yuanta Securities expects POSCO's third-quarter operating profit to come to 2.7 trillion won, 23.3% higher than the consensus forecast.In terms of valuations, steelmakers became more attractive than before. Their share prices against earnings for the next 12 months average 6.3, down from 7.9 three months before. Hyundai Steel and Dongkuk Steel are now traded at 5.6 and 4.6 times their forward earnings, respectively, down from their multiples of 9.1 and 12.2 three months before.Toward the fourth quarter of this year, prices of steel products may suffer from downward pressure on the prospect that the Chinese economy may slow down, coupled with a possible reduction in the US Federal Reserve's massive stimulus package.China's Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) added to the cautious view. The gauge of China's factory activity fell to 50.3 in July, versus 51.3 the month before, the lowest level since April 2020."The falling iron ore prices and the slowing Chinese economy would put a downward pressure on steel product prices toward the year-end," said NH Investment analyst Byeon Jong-man.But HI Investment & Securities analyst Kim Yoon-sang played down concerns about a slowdown in the Chinese economy, saying the Chinese government would make every effort to keep the world's second-largest economy buoyant.Yoon-sang Koh at


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Metso Outotec to deliver stirred mill technology to greenfield iron ore plant in China

Metso Outotec says it will deliver several energy-efficient stirred mills to a greenfield iron ore processing plant in Liaoning Province, north-eastern China, marking one of its “Planet Positive” mineral processing orders.


The stirred mill installation, which corresponds to 11 MW of power, will be the largest of its kind in China, according to the OEM.


While the value of the delivery has not been disclosed, the order has been booked in the company’s Minerals segment September quartr orders received.


Christoph Hoetzel, Head of Grinding business line at Metso Outotec, said the company previously agreed on the delivery of a PG4265™ primary gyratory crusher and three HP900™ cone crushers for the same project, however the customer soon realised the benefits that could come with using its stirred mill technology.


“Our stirred milling technology, with its excellent performance and ability to increase both iron ore concentrate and recovery, has proven itself multiple times in the Chinese market,” he said. “The new installation will also benefit from class-leading energy efficiency and wear life.”


Metso Outotec claims to be the only manufacturer worldwide offering several stirred mill technologies (Vertimill®, HIG™ mill, and SMD).


The Metso Outotec Planet Positive portfolio focuses on the most environmentally efficient technologies – of which there are more than 100 – in the company’s current portfolio, responding to the sustainability requirements of its customers in the aggregates, mining and metals refining industries. The customer requirements relate to energy or water efficiency, reduction of emissions, circularity and safety, the company says.


https://im-mining.com/2021/09/08/metso-outotec-to-deliver-stirred-mill-technology-to-greenfield-iron-ore-plant-in-china/

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Anthracite and coking coal

One of the curious developments of the past few months is that the slump in iron ore prices hasn’t been accompanied by similar falls in the prices of other key steelmaking ingredient, metallurgical coal.

Indeed, while the iron ore price has fallen about 34 per cent, from just under $US220 a tonne in mid-July to around $US145 a tonne, Australian metallurgical coal prices have soared from around $US100 a tonne at the start of this year to about $US220 a tonne. In China, the steel mills have been paying as much as $US440 a tonne for metallurgical, or coking, coal.

There are a number of influences at play to explain the divergence between the prices of what should be quite highly correlated commodities.

The iron ore price slump was the obvious consequences of a decision by China’s authorities to cap annual steel production at the same level as last year’s 1.05 billion tonnes. Given that the mills’ production was up 12 per cent in the first half of this year that has forced an equivalent cut to output in the second half.

That directive was part of a broader effort in China to curb soaring commodity prices, reduce China’s reliance on Australia for iron ore (part of the broader “punishment” for our leaders’ supposed intemperate remarks) and reduce emissions from one of its most emissions-intensive industries.

Metallurgical coal was, with energy coal, among the Australian exports targeted by the Chinese authorities for both explicit and unofficial bans late last year.

Initially buffeted by the abrupt cessation of demand from the biggest market for Australian coal, both energy and metallurgical coal prices have rebounded quite dramatically.

Metallurgical coal is interesting because Australia, and BHP in particular, dominate the seaborne trade in metallurgical coal with a market share of around 60 per cent. BHP accounts for roughly two-third of those exports. The next biggest supplier, the US, has a share of only about 16 per cent.

Unlike iron ore, where China is by far the dominant customer, demand for metallurgical coal is far more widely spread. China, Japan, the European Union and India each absorb about 20 per cent of seaborne supply.

While, as occurred with energy coal and other Australian products, the Chinese bans created initial shocks and disruptions as China’s demand completely evaporated – for months cargoes of Australian coal sat fruitlessly off China’s coast and prices dived – China appears to have miscalculated how quickly the producers would respond and how significantly its bans would rebound on its own industries.

Having lost China as a customer the Australian coal producers scrambled to find new customers, perversely aided by the slump in the prices. Buyers in Japan, India, the EU and South Korea, presented with high-quality coal at bargain prices, grabbed the opportunity.

Having shut off access to Australian coal, China had to find supply elsewhere. For metallurgical coal it turned to North America, Russia, South Africa and Mongolia.

Unsurprisingly, given the dominance of Australian supply in the metallurgical coal market in particular and the extra distance and costs involved in shipping North American coal to China relative to Australian coal, that caused some significant dislocations in a market already being impacted by the first half boom in China’s steel production.

China’s domestic prices for coking coal began spiking sharply even as the cost of its imports was rising.

Some production shutdowns in Australia when the initial loss of China as a customer and the price plunge forced the producers into losses, curtailing supply while COVID-related border closures that impacted access to Mongolian production and mine closures in China itself flowing from safety and environmental concern were other influences on a price for China’s own supply that surged quite dramatically. It’s now solidly over $US400 a tonne, having peaked at $US440 a tonne.

The price rise for the Australian metallurgical coal producers hasn’t been as dramatic but is above $US220 a tonne – it has more than doubled since the start of the year – dragged up by the prices China has been forced to pay to replace the Australian volumes with higher cost and lower quality products.

Australian coking coals are premium products, helping to maximise production yields and minimise the environmental effects. The redirection of Australian exports at prices way below those China is paying is good for China’s competitors in Asia and Europe and not so good for its own mills.

China has imposed price caps on its domestic coal producers and the big second-half cutbacks to steel production (if the mills do fully comply with Beijing’s directive) will also have an impact on demand for coal.

The outsized role of the Australian producers in the market for metallurgical coal, the premium quality of their products, the proximity of Australian supply to the key Asian markets and China’s own need for high-quality coal ought, however, to provide a relatively elevated floor under prices.

The super-premium prices China is paying are the unintended consequences of its efforts to punish Australia for the temerity of our leaders asking for proper investigations of the origins of the pandemic, criticising China’s treatment of Uighurs and its actions in Hong Kong.

For the moment, at least, while some of the exports China has targeted haven’t had the ability to adjust as easily or seen their markets recover in the same way as energy and metallurgical coal, the Chinese sanctions are hurting its companies and economy more than Australia’s.

Source: The Age

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Strike signs second iron ore customer for Peruvian shipment

ASX-listed Strike Resources has found a second buyer of its high-grade Apurimac direct shipping ore within six shipping days of its Peruvian port.

The company’s second iron ore shipment will leave port in early October and Strike hopes the new South American based buyer will become a repeat customer. The savings from the shorter voyage will be significant, as the first shipment to China was a thirty-day voyage whereas the new buyer is only six shipping days away. Strike’s premium grade iron ore is to be used by the buyer in an industrial trial for its steel manufacturing facility. According to Strike management, the buyer, who is not named, has a requirement for long term regular supplies of ore which could be potentially met by Strike from its high-grade Apurimac Project. Strike has also reported that independent analysis taken during loading of its first shipment of ore bound for China confirmed the exceptionally high-grade nature and quality of its Apurimac premium lump magnetite ore, with an incredibly high average iron grade of 65.99 per cent FE and impurities of less than 4 per cent across the 35,000-tonne shipment. Should this high grade hold up, Strike could be in for a hefty premium over the 62 per cent standard iron benchmark price currently clocking in at about US$160 a tonne.

The opportunity to sell our Apurimac Premium Lump DSO from Peru to a local South American steel mill offers significant benefits to Strike. In particular, the significantly shorter voyage time reduces shipping costs considerably and minimises pricing risk compared to sales to customers in China. The unusually high-grade Apurimac magnetite deposit has a JORC compliant resource of 269.4 million tonnes, with 142.2Mt going 57.8 per cent iron in the indicated category and another 127.2Mt at 56.7 per cent iron inferred. Strike says the “exceptionally” high grade magnetite ore at Apurimac is almost twice as high as other magnetite deposits developed in Australia.

Management says the project also hosts untapped exploration potential as evidenced by highly encouraging drill results that include a broad 154 metre hit at an eye-catching 62 per cent iron.Strike’s 7,500-hectare tenure in the Southern Highlands of Peru also hosts extensive gravity and magnetic anomalies that are yet to be drilled. Historical work at Apurimac suggests the iron ore mineralisation has potential to take in as much as 700Mt at between 58 per cent and 62 per cent iron, according to the company. To date, Strike has been mining a high-grade core within the deposit to front end the project’s cash flows. However, the company is evaluating the potential to develop Apurimac into a large-scale operation via on-going pre-feasibility work.

The pre-feasibility study is looking to build upon previous economic studies on Apurimac and will examine the potential for the project to host a 15 to 20Mt per annum operation using a slurry pipeline to transport a 68 per cent iron concentrate to the coast for export to China. With a second potential long-term buyer lined up, Strike has joined an exclusive club of iron ore exporters and with plenty more ore in the ground and a potential premium price on offer for the high-grade core, Strike is now in real danger of making some money – and soon.

https://thewest.com.au/business/public-companies/strike-signs-second-iron-ore-customer-for-peruvian-shipment--c-3919528&ct=ga&cd=CAIyGjc0NGExOTQxZTY0OTNlMDM6Y29tOmVuOkdC&usg=AFQjCNGDZoGVSfsmIxVTPonUdgn3rgkYu

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