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Why world’s first malaria shot won’t reach millions of children who need it

LONDON/KISUMU, Kenya, July 13 (Reuters) – After decades of work, the World Health Organization endorsed the first-ever malaria vaccine last year – a historic milestone that promised to drive back a disease that kills a child every minute.

In reality, efforts are falling well short of that, with a lack of funding and commercial potential thwarting GSK Plc’s capacity to produce as many doses of its shot as needed, according to Reuters interviews with about a dozen WHO officials, GSK staff, scientists and non-profit groups.

The British drugmaker committed to produce up to 15 million doses every year through 2028, following 2019 pilot programs – considerably less than the WHO says is needed. It is currently unlikely to make more than a few million annually before 2026, according to a source close to the vaccine rollout.

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A GSK spokesperson told Reuters that it could not make enough of its vaccine Mosquirix to meet the vast demand without more funds from international donors, without giving details on the numbers of doses it expected to produce annually in the first years of the roll-out.

“Demand over the next five to 10 years will probably outstrip the current forecasts on supply,” said Thomas Breuer, GSK’s chief global health officer.

The vaccine’s effectiveness at preventing severe cases of malaria in children is relatively low, at around 30% in a large-scale clinical trial. Some officials and donors are hoping that a second shot being tested by Oxford University may prove better, cheaper and easier to produce in bulk.

Yet the world’s inability to fund more Mosquirix shots dismays many in Africa. Children on the continent account for the vast majority of the roughly 600,000 global malaria deaths every year.

“Mosquirix has the potential to save a lot of precious lives before another new vaccine arrives,” said Kwame Amponsa-Achiano, a public health specialist leading a pilot vaccination program in Ghana. “The more we wait, the more children die needlessly.”

Rebecca Adhiambo Kwanya in the Kenyan city of Kisumu needs no convincing: her four-year-old child Betrun has suffered numerous malaria bouts since birth, yet her 18-month-old Bradley – vaccinated in the pilot program – hasn’t caught it.

“My elder one was not vaccinated and he was sick on and off,” she said. “But the smaller one, he got the vaccine and he was not even sick.”

The limited international appetite to produce and distribute more Mosquirix stands in stark contrast to the record speed and funds with which wealthy countries secured vaccines for COVID-19, a disease that poses relatively little risk to children.

Unlike many pharmaceutical products, there is no major market for a malaria vaccine in the developed world, where drug companies typically make the large profits that they say allows them to make their products available at far lower prices in poorer countries.

“This is a disease of the poor, so it’s not been that appealing in terms of the market,” said Corine Karema, chief executive of the nonprofit RBM Partnership to End Malaria, which is working with governments in Africa to eliminate the disease.

“But one kid dies of malaria every minute – that’s unacceptable.”

EXTRA DATA, ADDED YEARS

In the coming weeks, global health organizations will announce the next steps to make Mosquirix widely available, including the first procurement deal and the WHO’s recommended allocation to prioritize roughly 10 million children at highest risk, the source familiar with the rollout plans said.

Long-term, WHO officials say roughly 100 million doses a year of the four-dose vaccine will be needed, which would cover around 25 million children. When the U.N. agency backed Mosquirix last October, it said that even a smaller supply could save 40,000 to 80,000 lives each year, without specifying the number of doses required. read more

GSK’s maximum target of 15 million doses could prevent up to about 20,000 deaths each year, according to a Reuters review of the malaria vaccine models used by WHO.

Yet even hitting 15 million could take years, according to several officials at the WHO and elsewhere in the malaria effort who said wider distribution beyond the pilot countries was unlikely before early 2024, and even then it would start slowly.

GSK also has to upgrade its manufacturing capacity to reach its target. It said it had set up a funding deal with international vaccine alliance Gavi to help stockpile a key ingredient of the shot to ensure there was no gap in supply during that process.

“We are on course to complete the agreed stockpiling volume,” said a spokesperson.

The drugmaker has invested 700 million pounds ($840 million)in the vaccine’s development and says it won’t charge more than 5% above the cost to produce it.

“No company wants to be in a situation where you build manufacturing which oversupplies the market and vaccines will not be used,” said Breuer said, referring to a future split in demand between Mosquirix and the Oxford vaccine, if approved.

After 2028, India’s Bharat Biotech will take over production of Mosquirix’s key ingredient.

GSK’s Breuer expects the deal with Bharat to accelerate production. The British drugmaker will continue to produce the adjuvant – immune-boosting portion – of the vaccine, and recently committed to doubling production to 30 million doses annually, without offering a timeline.

Bharat Biotech, which has yet to outline its manufacturing plans, did not respond to requests for comment.

LOSING SOMEONE TO MALARIA

GSK has donated 10 million doses to pilot programs in Ghana, Kenya and Malawi, and less than half have been shipped so far. The countries plan to expand campaigns this year and next using a mix of the remaining donations and purchased shots.

GSK said a WHO decision to collect additional data on safety and effectiveness from the pilot programs had added years to the launch process, during which it had to idle a dedicated production facility.

The WHO said safety questions had to be addressed before approval, and that it was working urgently to boost supply.

Mary Hamel, the agency’s malaria vaccine implementation head, told Reuters that COVID vaccines had shown how quickly things could move with the political will and funding – which she said malaria had never had.

Mosquirix has been in development since the 1980s, in part because of the complexity of targeting the malaria parasite.

Its regulatory pathway has also been slow. In 2015, GSK published results from a large-scale clinical trial showing vaccine reduced the risk of severe malaria by about 30%. The WHO sought more data on the shot’s safety and effectiveness, gathering information from 2019 during the pilot vaccination programs, before endorsing Mosquirix.

In the past, such real-world data on a vaccine has often been tracked after it has been authorized for use.

“Would we have done it in the West? I don’t know,” said WHO’s Hamel, who was not involved in the decision, referring to holding up the deployment of shots to collect extra data.

BIG DONOR: NO SILVER BULLET

Now recommended for use, it is not clear how the shot’s distribution will be financed long-term. Funding for malaria totaled $3.3 billion in 2020, less than half of the estimated need, the WHO said, for tools such as treatments, bed nets and insecticides.

Adding malaria vaccines could cost between $325 million and more than $600 million annually, depending on how widely they are used, according to a study by global health researchers published in the Lancet journal in 2019. The WHO estimates that the GSK vaccine will cost around $5 per dose.

Two of the biggest funders behind the development and pilot programs for Mosquirix, the Bill and Melinda Gates Foundation and the Global Fund to Fight AIDS, Tuberculosis and Malaria, told Reuters they were committing almost no additional financing to deploy the vaccine.

“It’s not a silver bullet, and it’s relatively expensive compared to other interventions used for malaria,” said Peter Sands, head of the Global Fund. “The fundamental issue with malaria isn’t actually about tools. It’s about the fact that we spend far too little money on it.”

The Gates Foundation said it would continue to back research into how to best use the “historic” vaccine, but “concerns about the relatively low efficacy, short duration, and constrained supply challenges” meant it would not fund deployment.

Gavi is currently the only significant source of funding for a wider Mosquirix rollout. It has approved about $155 million for 2022 through 2025, alongside some funding from the countries themselves. Internal documents seen by Reuters suggest Gavi’s investment in the first year is only expected to be $20 million.

A source familiar with the plans said the group hoped that getting the vaccine rolled out, and countries showing demand, would make the case for more investment.

OXFORD SHOT IN THE WORKS

Several global health officials said future funding from donors might be better committed to a new shot from the scientists at Oxford University who developed AstraZeneca’s COVID vaccine.

Data from small trials showed 77% efficacy over a 12-month period, if given to babies shortly before the peak malaria season. Results from a much larger clinical trial are expected in the coming weeks. Some researchers suggest the GSK vaccine, too, may show higher effectiveness if given seasonally.

Oxford scientist Adrian Hill told Reuters his team aims to secure a WHO recommendation for their malaria shot within a year of submitting data to the agency.

The Serum Institute of India, which will manufacture the vaccine, told Reuters it expects to be able to make up to 200 million doses annually by the end of 2024.

In the years ahead, there are also hopes for a shot being developed by BioNTech (22UAy.DE), using the same mRNA technology as their successful COVID vaccine made with Pfizer . BioNTech aims to begin human trials by the end of 2022.

But in the years before either of those shots might be used, there will not be enough vaccines even for those 10 million children the WHO says are most at risk.

“We should have had this vaccine a long time ago,” said Alassane Dicko, professor of public health at the University of Science, Techniques and Technologies of Bamako in Mali, who has led some of the Mosquirix trials.

“We have to do more.”

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Reporting by Jennifer Rigby and Natalie Grover in London, and Maggie Fick in Nairobi; Additional reporting by Baz Ratner in Kisumu, Kenya; Editing by Michele Gershberg and Pravin Char

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Ships get older and slower as emissions rules bite

  • Average age of vessels up more than two years since 2017
  • New emissions rules may force older ships to go slower
  • One-fifth of ships fitted with energy saving devices
  • New vessels and alternative fuels the long-term solution

LONDON, July 11 (Reuters) – If shipping is the beating heart of global trade, its pulse is about to get slower.

Faced with uncertainty about which fuels to use in the long term to cut greenhouse gas emissions, many shipping firms are sticking with ageing fleets, but older vessels may soon have to start sailing slower to comply with new environmental rules.

From next year, the International Maritime Organization (IMO) requires all ships to calculate their annual carbon intensity based on a vessel’s emissions for the cargo it carries – and show that it is progressively coming down.

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While older ships can be retrofitted with devices to lower emissions, analysts say the quickest fix is just to go slower, with a 10% drop in cruising speeds slashing fuel usage by almost 30%, according to marine sector lender Danish Ship Finance.

“They’re basically being told to either improve the ship or slow down,” said Jan Dieleman, president of Cargill Ocean Transportation, the freight division of commodities trading house Cargill, which leases more than 600 vessels to ferry mainly food and energy products around the world.

Supply chains are already strained due to a surge in demand as economies rebound from lockdowns, pandemic disruptions at ports and a lack of new ships. If older vessels move into the slow lane as well, shipping capacity could take another hit at a time when record freight rates are driving up inflation. read more

At the moment, only about 5% of the world’s fleet can run on less-polluting alternatives to fuel oil, even though more than 40% of new ship orders will have that option, according to data from shipping analytics firm Clarksons Research.

But the new orders are not coming in fast enough to halt the trend of an ageing fleet across all three main types of cargo vessels: tankers, container ships and bulk carriers, the data provided to Reuters by Clarksons Research shows.

The average age of bulk carriers, which carry loose cargo such as grain and coal, had jumped to 11.4 years by June 2022 from 8.7 five years ago. Container ships now average 14.1 years, up from 11.6, while for tankers the average age was 12 years, up from 10.3 in 2017, according to the data.

“Some ship owners have preferred to buy second-hand vessels because of the uncertainties around future fuels,” said Stephen Gordon, managing director at Clarksons Research.

TALL ORDER

Orders for new container ships surged to a record high in 2021 and are still coming in at healthy clip this year, but as the appetite for new tankers and bulk carriers is much lower, the current order book across all three types of vessel only stands at about 10% of the fleet, down from over 50% in 2008.

Shipping companies are responsible for about 2.5% of the world’s carbon emissions and they are coming under increasing pressure to reduce both air and marine pollution.

The industry’s emissions rose last year, underlining the scale of the challenge in meeting the IMO’s target of halving emissions by 2050 from 2008 levels. The organization is now facing calls to go further and commit to net zero by 2050.

Some companies are testing and ordering vessels using alternative fuels such as methanol. Others are developing ships that can be retrofitted for fuels beyond oil, such as hydrogen or ammonia. There’s even a return to wind with vast, high-tech sails being tested by companies such as Cargill and Berge Bulk. read more

But many of the potential low-carbon technologies are in the early stages of development with limited commercial application, meaning the majority of new orders are still for vessels powered by fuel oil and other fossil fuels.

Of the vessels on order, more than a third, or 741, are set to use liquefied natural gas (LNG), 24 can be driven by methanol and six by hydrogen. Another 180 have some form of hybrid propulsion using batteries, Clarksons data shows.

Many shipping firms are hedging their bets mainly because prolonging the life span of vessels is cheaper and lower risk than new builds. They also gain breathing space while waiting for the winning new technologies to become mainstream.

“We have a clash between an industry that is very long-term investment oriented and a very fast pace of change,” said John Hatley, general manager of market innovation in North America at Finnish marine technology company Wartsila (WRT1V.HE).

Cargill says that as of now it doesn’t expect to have many new-build ships in its fleet, instead fitting energy saving devices to older vessels and prolonging their use, while there’s still uncertainty about future technology.

They’re not alone, with more than a fifth of global shipping capacity fitted with such devices, according to Clarksons.

Devices include Flettner rotors, tail spinning cylinders that act like a sail and let ships throttle back when it’s windy, or air lubrication systems that save fuel by covering the hull with small bubbles to reduce friction with seawater.

While energy saving devices go a long way to tackling emissions, ultimately, newer vessels are a better bet, said Peter Sand, analyst at shipping and air cargo data firm Xeneta.

“The next generation of fuel oil ships will be much more carbon efficient, they will be able to transport the same amount of cargo emitting only half of the emissions that they did over a decade ago,” he said.

THE POSEIDON PRINCIPLES

Shipping firms are set to come under growing pressure to comply with targets set by the IMO, which will rate the energy efficiency of ships on a scale of A to E, as the ratings will have a knock-on effect when it comes to finance and insurance.

In 2019, a group of banks agreed to consider efforts to cut carbon emissions when lending to shipping companies and established a global framework known as the Poseidon Principles.

The Poseidon Principles website shows that 28 banks, which include BNP Paribas (BNPP.PA), Citi , Danske Bank (DANSKE.CO), Societe Generale (SOGN.PA) and Standard Chartered (STAN.L), have committed to being consistent with IMO policies when assessing shipping portfolios on environmental grounds.

“Lending decisions on second-hand ships are going to become an issue on older tonnage,” said Michael Parker, chairman of Citigroup’s global shipping, logistics and offshore business, adding that environmental factors would be taken into account when lenders decided whether to refinance vessels.

“Second-hand ships will continue to get financing, provided that the owner is doing the right things about keeping that vessel as environmentally efficient as possible,” he said.

One early adopter of new technology is shipping giant A.P. Moller-Maersk . It has ordered 12 vessels which can run on green methanol produced from sources such as biomass, as well as fuel oil as there is not yet enough low carbon fuel available.

The Danish company doesn’t intend to use LNG because it is still a fossil fuel and it would prefer to shift directly to a lower carbon alternative.

Wartsila, meanwhile, is launching an ammonia-fueled engine next year, which it says is generating a lot of interest from customers, as well as a hydrogen engine in 2025.

Ship owners are facing a lot of uncertainty over how to “future proof” their fleets and avoid regretting investment decisions now within a couple of years, said Wartsila’s Hatley.

“They would rather wait for maybe the whole life of the ship of 20 years, but that’s even more uncertain now because of the pace of change.”

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Reporting by Sarah McFarlane; Editing by Veronica Brown and David Clarke

Our Standards: The Thomson Reuters Trust Principles.

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Biden administration leans on Tesla for guidance in renewable fuel policy reform

June 23 (Reuters) – U.S. President Joe Biden rarely mentions electric car maker Tesla Inc (TSLA.O) in public. But privately his administration has leaned on the company to help craft a new policy to allow electric vehicles (EVs) to benefit from the nation’s lucrative renewable fuel subsidies, according to emails reviewed by Reuters.

The Biden administration contacted Tesla on its first day in office, marking the start of a series of meetings on the topic between federal officials and companies linked to the EV industry over the months that followed, according to the emails.

The administration’s early and extensive outreach reflects that expanding the scope of the U.S. Renewable Fuel Standard (RFS) to make it a tool for electrifying the nation’s automobile fleet is one of Biden’s priorities in the fight against climate change.

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The RFS, which dates back to 2005, is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. Until now, it has been primarily a subsidy for corn-based ethanol.

The White House’s outreach to Tesla also shows that, despite a public grudge match between Biden and Tesla founder Elon Musk, the Biden team tried early on to involve the carmaker in one of its key policy pushes. Biden has set a target to make half of all new vehicles sold in 2030 zero-emissions vehicles.

The U.S. Environmental Protection Agency, which administers the RFS, is expected to unveil proposed changes to the policy sometime this year, defining new winners and losers in a multibillion-dollar market for credits, known as RINs, that has supported corn growers and biofuels producers for more than a decade.

Early signs are that the administration is leaning toward a rule that benefits carmakers like Tesla, giving them the greatest access to so-called e-RINS, or electric RINs. But the reform could also spread the subsidy to related industries too, like car charging companies and landfills that supply renewable biogas to power plants, according to industry players.

“We have heard through the grapevine that car companies are really, really going to like this rule,” said Maureen Walsh, director of federal policy with the American Biogas Council, speaking at a conference in May. But she added: “We have all been scrapping at that pile.”

The idea of including electric vehicles in the RFS has been under consideration for years, but gained steam as Biden’s transition team zeroed in on EVs as a job-friendly solution to the climate crisis. Transport accounts for more than a quarter of U.S. greenhouse gas emissions.

The White House did not respond to requests for comment.

The EPA said it was consulting “all interested stakeholders” in its RFS policy review.

The current RFS requires oil refiners to blend ethanol and other biofuels into the fuel pool or buy RINs from those who do. That policy has spurred an economic boom in Farm Belt states. But it has also angered environmental groups who say the extra corn production damages land and water while prolonging the era of the internal-combustion engine.

Friends of the Earth, an environmental group, has voiced disapproval over an e-RIN program. The group sees the RFS as a policy that has failed to increase production of new generation lower-carbon fuels, while also harming the environment. It also sees expanding the program as a slippery slope toward increasing the use of feedstocks for wood and wood waste, which can generate electricity.

“The RFS should be reformed to tackle giveaways for dirty corn ethanol. It shouldn’t be expanded to include new giveaways for factory farming and woody biomass,” said Friends of the Earth spokesman Lukas Ross.

TURN TO TESLA

On the morning of Biden’s presidential inauguration in January 2021, EPA staffer Dallas Burkholder emailed a top Tesla lobbyist, Rohan Patel, to set up a meeting on how to incorporate electric cars into the RFS, according to the documents reviewed by Reuters. They scheduled a meeting for a week later, records show.

Since then, the Biden EPA has had additional meetings on the topic with Tesla, groups representing biogas producers like Waste Management Inc (WM.N) and Republic Services Inc (RSG.N) and charging station companies like ChargePoint Holdings Inc (CHPT.N), according to the documents.

The EPA has also set up at least one meeting with White House staff members, including climate adviser Ali Zaidi, to discuss the reforms, according to the emails.

The Biden White House has been an unapologetic supporter of the EV industry, pinning much of its climate hopes on getting more electric cars on the road. The bipartisan infrastructure bill that passed last year included $7.5 billion for new EV charging stations and Biden has sought to reinstate expired tax credits to help consumers pay for new vehicles.

Even so, Tesla’s CEO, Musk, has often been at odds with the White House, sending out harsh tweets directed at Biden. In February, Biden publicly acknowledged the role of Tesla in EV manufacturing, after Musk repeatedly complained about being ignored. read more

WHAT EVERYONE WANTS

Tesla is seeking changes to the RFS that will allow it to earn renewable fuel credits based on kilowatt hours driven or similar metrics, according to two sources familiar with the plan. The company has also explored partnerships with biogas-producers to give them leverage in whatever market emerges from the new rule, the sources say.

Tesla did not respond to requests for comment for this story.

Members of the car-charging industry, meanwhile, are also pushing for a share.

Matthew Nelson, a lobbyist with Electrify America, a charging company trade group, wrote to the EPA in October and told them that e-RINs would do more to enable Biden’s 2030 goals of 500,000 charging stations and 50% EV sales than any other policy, according to the emails. He added that charging companies need the credit to compete with gasoline.

The United States currently has about 48,000 charging stations, concentrated around coastal regions, according to Department of Energy data.

Biogas producers, like landfills, also want credits, arguing they provide renewable fuel to the grid that generates the power for electric vehicles.

Biogas-derived electricity is already eligible for generating RINs. But the EPA has never approved an application from the industry because it has yet to determine the best way to trace the power entering EVs back to its origin.

In 2020, landfill gas generated about 10 billion kilowatt hours of electricity, or 0.3% of U.S. utility-scale power.

“We feel that implementing the electricity program in the RFS aligns well with the Biden administration’s climate goals,” Carrie Annand, executive director of the Biomass Power Association, wrote to the EPA, according to the documents.

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Reporting by Jarrett Renshaw in Philadelphia and Stephanie Kelly in New York
Editing by Richard Valdmanis and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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South Korea hunts tungsten treasure in race for rare minerals

  • S.Korean tungsten mine gets $100 million makeover
  • Dozens of new mineral projects launched globally
  • Green, digital booms fuel demand for rare minerals
  • China is pre-eminent in critical minerals supply
  • GRAPHIC-S.Korea’s reliance on China:

SANGDONG, South Korea, May 9 (Reuters) – Blue tungsten winking from the walls of abandoned mine shafts, in a town that’s seen better days, could be a catalyst for South Korea’s bid to break China’s dominance of critical minerals and stake its claim to the raw materials of the future.

The mine in Sangdong, 180 km southeast of Seoul, is being brought back from the dead to extract the rare metal that’s found fresh value in the digital age in technologies ranging from phones and chips to electric vehicles and missiles.

“Why reopen it now after 30 years? Because it means sovereignty over natural resources,” said Lee Dong-seob, vice president of mine owner Almonty Korea Tungsten Corp.

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“Resources have become weapons and strategic assets.”

Sangdong is one of at least 30 critical mineral mines or processing plants globally that have been launched or reopened outside China over the last four years, according to a Reuters review of projects announced by governments and companies. These include projects developing lithium in Australia, rare earths in the United States and tungsten in Britain.

The scale of the plans illustrates the pressure felt by countries across the world to secure supplies of critical minerals regarded as essential for the green energy transition, from lithium in EV batteries to magnesium in laptops and neodymium found in wind turbines.

Overall demand for such rare minerals is expected to increase four-fold by 2040, the International Energy Agency said last year. For those used in electric vehicles and battery storage, demand is projected to grow 30-fold, it added.

Many countries view their minerals drive as a matter of national security because China controls the mining, processing or refining of many of these resources.

The Asian powerhouse is the largest supplier of critical minerals to the United States and Europe, according to a study by the China Geological Survey in 2019. Of the 35 minerals the United States has classified as critical, China is the largest supplier of 13, including rare earth elements essential for clean-energy technologies, the study found. China is the largest source of 21 key minerals for the European Union, such as antimony used in batteries, it said.

“In the critical raw material restaurant, China is sitting eating its dessert, and the rest of the world is in the taxi reading the menu,” said Julian Kettle, senior vice president for metals and mining at consultancy Wood MacKenzie.

The stakes are particularly high for South Korea, home of major chipmakers like Samsung Electronics. The country is the world’s largest consumer of tungsten per capita and relies on China for 95% of its imports of the metal, which is prized for its unrivalled strength and its resistance to heat.

China controls over 80% of global tungsten supplies, according to CRU Group, London-based commodity analysts.

The mine at Sangdong, a once bustling town of 30,000 residents that’s now home to just 1,000, holds one of the world’s largest tungsten deposits and could produce 10% of global supply when it opens next year, according to its owner.

Lewis Black, CEO of Almonty Korea’s Canadian-based parent Almonty Industries, told Reuters that it planned to offer about half of the operation’s processed output to the domestic market in South Korea as an alternative to Chinese supply.

“It’s easy to buy from China and China is the largest trading partner of South Korea but they know they’re over-dependent,” Black said. “You have to have a plan B right now.”

Sangdong’s tungsten, discovered in 1916 during the Japanese colonial era, was once a backbone of the South Korean economy, accounting for 70% of the country’s export earnings in the 1960s when it was largely used in metal-cutting tools.

The mine was closed in 1994 due to cheaper supply of the mineral from China, which made it commercially unviable, but now Almonty is betting that demand, and prices will continue to rise driven by the digital and green revolutions as well as a growing desire by countries to diversify their supply sources.

European prices of 88.5% minimum paratungstate – the key raw material ingredient in tungsten products – are trading around $346 per tonne, up more than 25% from a year ago and close to their highest levels in five years, according to pricing agency Asian Metal.

The Sangdong mine is being modernised, with vast tunnels being dug underground, while work has also started on a tungsten crushing and grinding plant.

“We should keep running this kind of mine so that new technologies can be handed over to the next generations,” said Kang Dong-hoon, a manager in Sangdong, where a “Pride of Korea” sign is displayed on a wall of the mine office.

“We have been lost in the mining industry for 30 years. If we lose this chance, then there will be no more.”

Almonty Industries has signed a 15-year deal to sell tungsten to Pennsylvania-based Global Tungsten & Powders, a supplier to the U.S. military, which variously uses the metal in artillery shell tips, rockets and satellite antennae.

Yet there are no guarantees of long-term success for the mining group, which is investing about $100 million in the Sangdong project. Such ventures may still struggle to compete with China and there are concerns among some industry experts that developed countries will not follow through on commitments to diversify supply chains for critical minerals.

Seoul set up an Economic Security Key Items Taskforce after a supply crisis last November when Beijing tightened exports of urea solution, which many South Korean diesel vehicles are required by law to use to cut emissions. Nearly 97% of South Korea’s urea came from China at the time and shortages prompted panic-buying at filling stations across the country.

The Korean Mine Rehabilitation and Resources Corporation (KOMIR), a government agency responsible for national resource security, told Reuters it had committed to subsidise about 37% of Sangdong’s tunnelling costs and would consider further support to mitigate any potential environmental damage.

Incoming President Yoon Seok-yeol pledged in January to reduce mineral dependence on “a certain country”, and last month announced a new resource strategy that will allow the government to share stockpiling information with the private sector.

South Korea is not alone.

The United States, European Union and Japan have all launched or updated national critical mineral supply strategies over the last two years, laying out broad plans to invest in more diversified supply lines to reduce their reliance on China.

Mineral supply chains have also become a feature of diplomatic missions.

Last year, Canada and the European Union launched a strategic partnership on raw materials to reduce dependence on China, while South Korea recently signed collaboration deals with Australia and Indonesia on mineral supply chains.

“Supply-chain diplomacy will be prioritised by many governments in the coming years as accessing critical raw materials for the green and digital transition has become a top priority,” said Henning Gloystein, director of energy and climate resources at the Eurasia Group consultancy.

In November, China’s top economic planner said it would step up exploration of strategic mineral resources including rare earths, tungsten and copper.

Investment globally of $200 billion in additional mining and smelter capacity is needed to meet critical mineral supply demand by 2030, 10 times what is being committed currently, Kettle said.

Yet projects have faced resistance from communities who don’t want a mine or smelter near their homes.

In January, for example, pressure from environmentalists prompted Serbia to revoke Rio Tinto’s lithium exploration licence while U.S. President Joe Biden’s administration cancelled two leases for Antofagasta’s copper and nickel mines in Minnesota. read more

In Sangdong, some residents are doubtful that the mine will improve their lives.

“Many of us in this town didn’t believe the mine would really come back,” said Kim Kwang-gil, 75, who for decades lived off the tungsten he panned from a stream flowing down from the mine when it operated.

“The mine doesn’t need as many people as before, because everything is done by machines.”

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Reporting by Ju-min Park and Joe Brock; Additional reporting by Beijing Newsroom and Gavin Maguire; Editing by Kevin Krolicki and Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

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No poop for you: Manure supplies run short as fertilizer prices soar

CHICAGO, April 6 (Reuters) – For nearly two decades, Abe Sandquist has used every marketing tool he can think of to sell the back end of a cow. Poop, after all, needs to go somewhere. The Midwestern entrepreneur has worked hard to woo farmers on its benefits for their crops.

Now, facing a global shortage of commercial fertilizers made worse by Russia’s invasion of Ukraine, more U.S. growers are knocking on his door. Sandquist says they’re clamoring to get their hands on something Old MacDonald would swear by: old-fashioned animal manure. read more

“I wish we had more to sell,” said Sandquist, founder of Natural Fertilizer Services Inc, a nutrient management firm based in the U.S. state of Iowa. “But there’s not enough to meet the demand.”

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Some livestock and dairy farmers, including those who previously paid to have their animals’ waste removed, have found a fertile side business selling it to grain growers. Equipment firms that make manure spreading equipment known as “honeywagons” are also benefiting.

Not only are more U.S. farmers hunting manure supplies for this spring planting season, some cattle feeders that sell waste are sold out through the end of the year, according to industry consultant Allen Kampschnieder.

“Manure is absolutely a hot commodity,” said Kampschnieder, who works for Nebraska-based Nutrient Advisors. “We’ve got waiting lists.”

Sky-high prices for industrial fertilizer are projected to reduce American farmers’ corn and wheat plantings this spring, according to U.S. government data. That further threatens global food supplies as domestic wheat inventories are the lowest in 14 years, and the Russia-Ukraine war is disrupting grain shipments from those key suppliers. read more

While manure can replace some of the nutrient shortfall, it’s no panacea, agriculture specialists say. There’s not enough supply to swap out all the commercial fertilizer used in the United States. Transporting it is expensive. And prices for animal waste, too, are rising on strong demand.

It’s also highly regulated by state and federal authorities, in part due to concerns about impacts on water systems.

Manure can cause serious problems if it contaminates nearby streams, lakes and groundwater, said Chris Jones, a research engineer and water quality expert at the University of Iowa.

Livestock farmers say it’s a heavy lift to meet all the government rules and track how manure is applied.

RACE FOR WASTE

Regardless of the drawbacks, demand is booming.

In Wisconsin, three dairy farmers told Reuters they turned down requests to buy their manure sent via text and Twitter messages.

North Carolina-based Phinite, which makes manure-drying systems, says it’s fielding solicitations from growers as far away as Minnesota, Illinois, Iowa and Indiana.

Smithfield Foods, the world’s largest pork producer, has noticed the shift at the U.S. hog farms that supply its slaughterhouses.

“We’re definitely seeing farmers move toward manure with the increase in fertilizer prices,” said Jim Monroe, a spokesperson for the company, which is owned by Hong Kong-listed WH Group Ltd (0288.HK).

Industrial fertilizers such as nitrogen require a lot of energy to produce. Prices started to surge last year amid rising demand and lower supply as record natural gas and coal prices triggered output cuts by fertilizer manufacturers. Extreme weather and COVID-19 outbreaks also roiled global supply chains. read more

War in Ukraine has made the situation worse by reducing fertilizer exports from Russia and its ally Belarus due to Western sanctions and shipping snags. That threatens to shrink harvests around the world at a time of record food inflation. Combined, Russia and Belarus accounted for more than 40% of global exports of potash last year, one of three critical nutrients used to boost crop yields, according to Dutch lender Rabobank.

As of March, commercial fertilizer prices reached a record high, with nitrogen fertilizer jumping four-fold since 2020 and phosphate and potash up three-fold, said London-based consultancy CRU Group.

One person left bereft is Dale Cramer, who grows corn, soybeans and wheat on about 6,000 acres in Cambridge, Nebraska. Searching for alternatives, he has sniffed around feedlots for manure since last August with no luck.

“A lot of people have put their names in for the same thing,” Cramer said.

HONEYWAGON SCRAMBLE

With demand for manure surging, prices have followed, delivering an unexpected windfall to livestock producers and cattle feedlots.

Prices for good-quality solid manure in Nebraska alone have reached $11 to $14 per ton, up from a typical price of $5 to $8 per ton, consultant Kampschnieder said. A dry winter helped drive up prices by leaving manure with less water in it, making it more concentrated, and thus more valuable, he said.

Iowa farmer Pat Reisinger is relieved he has dung from the pigs and dairy cows he raises to fertilize the corn, soybeans and hay he grows to feed those animals. He sold a little manure to one neighbor and is getting phone calls from others in need.

“If I sold any more, I’d have to turn around and buy commercial fertilizer, which makes no sense,” Reisinger said.

The boom has also has lifted machinery companies that make spreading equipment for solid manure as well as so-called honeywagons: wheeled tanks hitched to trucks and tractors for transporting and applying liquefied waste.

In Canada, Husky Farm Equipment Ltd is sold out of honeywagons. The company built its first contraption back in 1960 as a way to make collecting and spreading manure more efficient, according to President Walter Grose. Today Grose sells directly to farmers and machinery dealerships, and he can’t keep up.

“We have people looking for equipment right away and we’re sold out for six months,” said Grose who sells honeywagons in several sizes. Bigger tanks come with a $70,000 average price tag.

CNH Industrial , the American-Italian farm and construction equipment giant, said it has seen strong demand for its New Holland brand box spreaders – essentially, a steel box that attaches to a tractor to haul and spread solid manure.

Kansas equipment dealership KanEquip Inc is sold out of New Holland spreaders, even though prices have jumped 10% from the normal list price of $30,000, said regional manager Bryndon Meinhardt. He said the dealership has ordered 10 more to meet demand.

NO POOP FOR YOU

Even in states where large livestock herds generate massive quantities of manure, there’s not enough to replace commercial fertilizer completely. Iowa, the top U.S. producer of pork and corn, already applies all of its manure on land covering about 25% of its corn acres each year, said Dan Andersen, an associate professor at Iowa State University who specializes in manure management.

On average, Iowa uses about 14 billion gallons of manure annually, said Andersen, known as @DrManure on Twitter. He expects Iowa growers may suck out an extra billion gallons this year from storage in tanks on farms to substitute pricey commercial fertilizer.

Part of the current supply problem is rooted in the evolution of the U.S. farm economy. As America’s livestock sector has consolidated, there are geographical hubs where animals are raised for eggs, milk or meat, and where the most manure is produced. As a result, some places have too little, while others have too much and have wrestled with ways to dispose of it.

Last October, Pennsylvania dairyman Brett Reinford thought he might be tight on manure storage space over the winter. So he made an offer to local farmers: You come and haul it away, you can have it for free. He got no takers.

Fast forward six months and Reinford is now sitting on liquid gold. “We’re keeping it all and I wish we had more,” he said.

Manure could become even more precious later this year, as U.S. livestock herds and poultry flocks shrink.

The number of hogs in the United States has dropped to its lowest level in about five years, as producers grapple with swine diseases and rising costs for feed and other inputs. Bird flu, meanwhile, has wiped out more than 22 million chickens and turkeys on commercial U.S. farms since February.

But even hard-hit poultry farmers could have something to use: Their dead birds can be composted and applied as fertilizer, according to the Iowa Department of Agriculture and Land Stewardship.

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Reporting By P.J. Huffstutter and Tom Polansek in Chicago, and Bianca Flowers in Chicago and New York. Additional reporting by Leah Douglas in Washington, D.C.; Editing by Caroline Stauffer and Marla Dickerson

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Cucumber crisis: surging energy prices leave British glasshouses empty

  • Cost of growing a cucumber to jump from 25p to 70p
  • High energy costs mean crops not planted
  • Pressures likely to push food prices higher

ROYDON, England, March 31 (Reuters) – In a small corner of south-east England, vast glasshouses stand empty, the soaring cost of energy preventing their owner from using heat to grow cucumbers for the British market.

Elsewhere in the country growers have also failed to plant peppers, aubergines and tomatoes after a surge in natural gas prices late last year was exacerbated by Russia’s invasion of Ukraine, making the crops economically unviable.

The hit to UK farms, which need gas to counter the country’s inclement weather, is one of the myriad ways the energy crisis and invasion have hit food supplies around the world, with global grain production and edible oils also under threat.

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In Britain it is likely to push food prices higher at a time of historic inflation, and threaten the availability of goods such as the quintessentially British cucumber sandwich served at the Wimbledon tennis tournament and big London hotels.

While last year it cost about 25 pence to produce a cucumber in Britain, that has now doubled and is set to hit 70 pence when higher energy prices fully kick in, trade body British Growers says.

Regular sized cucumbers were selling for as little as 43 pence at Britain’s biggest supermarket chains on Tuesday.

“Gas prices being so sky high, it’s a worrying time,” grower Tony Montalbano told Reuters, while standing in an empty glasshouse at Roydon in the Lea Valley where for 54 years three generations of his family have farmed cucumbers.

“All the years of us working hard to get to where we are, and then one year it could just all finish,” he said.

All 30,000 square metres of glasshouse at his Green Acre Salads business, which supplies supermarket groups including market leader Tesco (TSCO.L), Sainsbury’s (SBRY.L) and Morrisons, are currently empty.

Montalbano, whose grandfather emigrated from Sicily in 1968 and started a nursery to provide local stores with fresh cucumbers, decided not to plant the first of the year’s three cycles in January.

SOARING COSTS

Last year he paid 40-50 pence a therm for natural gas. Last week it was 2.25 pounds a therm, having briefly hit a record 8 pounds in the wake of Russia’s invasion.

Fertiliser prices have tripled versus last year, while the cost of carbon dioxide – used both to aid growing and in packaging – and hard-to-attain labour have also shot up.

“We are now in an unprecedented situation where the cost increases have far outstripped a grower’s ability to do anything about them,” said Jack Ward, head of British Growers.

It means a massive contraction for the industry, threatening Britain’s future food security, and further price rises for UK consumers already facing a bigger inflation hit than other countries in Europe following Brexit.

UK inflation hit a 30-year high of 6.2% in February and is forecast to approach 9% in late 2022, contributing to the biggest fall in living standards since at least the 1950s.

The National Farmers’ Union says the UK is sleepwalking into a food security crisis. It warns that UK production of peppers could fall from 100 million last year to 50 million this year, with cucumbers down from 80 million to 35 million.

In winter, the UK has typically imported around 90% of crops like cucumbers and tomatoes, but has been nearly self-sufficient in the summer.

The Lea Valley Growers Association, whose members produce about three-quarters of Britain’s cucumber and sweet pepper crop, said about 90% did not plant in January, while half have still not planted and will not plant if gas prices remain high.

“There’s definitely going to be a lack of British produce in the supermarkets,” association secretary Lee Stiles said. “Whether there’s a lack of produce overall depends on where and how far away the retailers are prepared to source it from.”

Growers in the Netherlands, one of Britain’s key salad suppliers, face similar challenges and have reduced exports.

Spain and Morocco do not heat their glasshouses to a large extent, but delivery to the UK in chilled lorries adds time and cost.

Joe Shepherdson of the UK’s Cucumber Growers Association said those growers that have planted are using less heat, but that reduces production and increases the risk of disease.

PRESSURE ON PRICES

Britain’s biggest supermarket groups, including Tesco, Sainsbury’s, Asda and Marks & Spencer (MKS.L), acknowledge the pressures in the market but say they are confident about supply, stressing their long-term partnerships with growers.

How far the increase in production costs will translate to higher prices on the shelf depends largely on whether supermarkets opt to absorb the difference themselves, or pass it on to consumers.

Smaller retailers buying from the market may struggle.

“Any cut in production from suppliers would undoubtedly put further pressure on prices,” said Andrew Opie, director of food and sustainability at retail industry lobby group the British Retail Consortium.

Growers want help from the government. They have lobbied for tax and levies on gas to be removed, but finance minister Rishi Sunak did not mention it in his spring budget last week.

Despite the dismal backdrop and after much soul-searching, Montalbano will plant a crop next month, fearing the loss of future contracts if he does not. He may gamble on the British weather, and grow his plants “cold”, with little or no heat.

“I feel like I have no choice, because if I don’t, then I lose my place,” he said, in a glasshouse that in a normal March would be packed with bushy green cucumber plants.

“Am I going to make anything out of it? I’ll be quite happy to break even this year,” he said.

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Reporting by James Davey; Editing by Kate Holton and Jan Harvey

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Inside China’s electric drive for swappable car batteries

DETROIT/BEIJING, March 25 (Reuters) – A year ago Tesla dismissed the alternative path of electric car battery swapping as “riddled with problems and not suitable for widescale use”. It seems Beijing disagrees.

In fact, China is pushing hard for swappable batteries for electric vehicles (EVs) as a supplement to regular vehicle charging, with the government throwing its weight behind several companies advancing the technology.

Four companies – automakers Nio and Geely, battery swap developer Aulton and state-owned oil producer Sinopec (600028.SS) – say they plan to establish a total of 24,000 swap stations across the country by 2025, up from about 1,400 today.

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Battery swapping allows drivers to replace depleted packs quickly with fully charged ones, rather than plugging the vehicle into a charging point. Swapping could help mitigate the growing strains placed on power grids as millions of drivers juice up, yet specialists caution it can only take off in a big way if batteries become standardized industry-wide.

If China is successful in making swapping successful on a large scale, though, the shift could undermine the business models of global brands like Tesla, Volkswagen and General Motors, whose EVs are designed for and powered by their own proprietary batteries and, in Tesla’s case, its own charging network.

Even slight changes of fortune in the country can have significant consequences for these carmakers, whose futures rely on achieving success in the world’s largest car market.

The Chinese swapping plans, announced piecemeal in recent weeks and months but not widely known outside the domestic auto sector, are part of Beijing’s broader plan to make 25% of car sales fully electric by 2025, or more than 6 million passenger vehicles based on current forecasts. Estimates vary widely as to how many will have swappable batteries.

The Ministry of Industry and Information (MIIT), a major supporter of battery swapping, did not immediately respond to a request for further comment about China’s battery swapping strategy

Furthermore, big Chinese players are also looking overseas.

Ningde-based CATL (Contemporary Amperex Technology Company Ltd) (300750.SZ), the world’s biggest battery maker, told Reuters it was developing swapping services not only for China, but “to meet the demand of global markets”.

“We are accumulating experience in the Chinese market and at the same time communicating closely with overseas partners. You’ll receive more concrete information soon,” said CATL, which supplies about half of China’s market and more than 30% of the battery cells used in EVs globally.

Nio, among China’s top EV makers, plans to offer U.S. customers battery-swapping services by 2025, the company’s North American head Ganesh Iyer said. It has more than 800 swap stations in China and has just set up its first in Europe.

‘NEVER GOING TO HAPPEN’

Such plans clash with the views expressed by global EV pioneer and leader Tesla in March 2021 when it dismissed the viability of large-scale battery swapping in China. It trialed swapping in the United States years ago and abandoned it.

Industry executives are divided over whether China’s push can overcome the reluctance of European and U.S. automakers to abandon their own battery designs and adopt standardized ones.

“You’ll never ever get carmakers to agree to swappable batteries,” said Andy Palmer, former CEO of Aston Martin and currently head of EV maker Switch Mobility.

John Holland, wireless EV charging company Momentum Dynamics’ commercial director for Europe and the Middle East, said convergence on batteries created a quandary for automakers.

“Then how do you differentiate your product?”

Tesla (TSLA.O), GM (GM.N) and Volkswagen (VOWG_p.DE) say they are not exploring battery swapping right now.

A GM spokesperson told Reuters that swappable batteries “are not part of our strategy at present.”

A VW spokesperson said the company originally considered battery swapping to avoid waiting times at charging stations, but that advances in fast charging and the lower costs of non-swappable batteries had led it to shift focus to the latter.

“Nevertheless, our strategists closely monitor and evaluate the competitive environment and all developments in this area,” the German carmaker said.

A Tesla spokesperson didn’t immediately respond to a request for comment.

Swapping and regular grid-charging both have critics and cheerleaders in a rapidly evolving auto tech arena.

The ease of exchanging batteries in e-scooters has been demonstrated in Asia and Europe, but the challenge is adapting the technology to larger and more complex cars, trucks and vans. See accompanying short story: read more

Concerns about the length of swapping times have also faded, with Nio saying it has automated the process so it takes as little as 90 seconds.

Yet the more familiar grid-charging side has a huge head start, and is bolstered by the fact there’s already billions of dollars’ worth of charging infrastructure built globally.

Automakers are also rolling out EVs with improved batteries that boast longer ranges and shorter charge times, which could make swapping obsolete.

‘BIGGEST GAME IN TOWN’

In China, MIIT released the global auto industry’s first standards for swapping technology last year. They went into effect in November, specifying safety requirements, test methods and inspection rules for EVs with swappable batteries.

The ministry aims to have more than 100,000 battery-swappable vehicles and more than 1,000 swap stations, in total, in 11 cities by 2023; stations in the bigger cities will accommodate both passenger and commercial vehicles, while outlying provincial cities will focus on electric heavy-duty trucks.

Yet a key uncertainty for China’s ambitions is whether enough carmakers adopt standardized batteries, an obstacle that scuttled attempts at battery swapping in the last decade – yet, if overcome, could propel the technology to a viable scale. Read a short history of swappable batteries: read more

There’s a long way to go. Even the swapping option offered to customers by Nio uses the company’s own batteries, thus limiting the service to people driving Nio cars equipped with the company’s proprietary batteries.

CATL, which helped Nio develop swappable batteries, has signed up China’s FAW Motor as the first customer for its new Evogo battery swapping service and expects to extend the service to other Chinese automakers.

CATL wants domestic firms to accept its standard battery design so its stations can service models from multiple brands, according to a person close to the company who declined to be named due to commercial sensitivities, adding that it expected more car brands to adopt its standardized designs.

The company is “the biggest game in town” for EV batteries, said Tu Le, managing director of Sino Auto Insights.

“They can offer a large footprint for swapping stations and a low cost to use those stations,” he said.

Meanwhile, among those Chinese companies building out swap station networks, Shanghai-based Aulton New Energy Automotive Technology has said it is working with automakers to develop standardized batteries, and with Sinopec to install stations at 30,000 Sinopec gas stations in China by 2030.

Aulton didn’t respond to a request for comment.

MAGIC IN AMERICA?

While international carmakers may resist swappable batteries, they are reliant on Chinese sales to fund their costly transition to electric and will have little choice but to adapt to the market there, according to many industry experts.

Furthermore, if Beijing ultimately mandates swappable batteries “and starts saying, ‘okay, the only car you’re allowed to produce is one that meets the standard’ . . . you would have to comply to stay in business” in China, says John Helveston, assistant professor at George Washington University’s School of Engineering.

Some advocates of swapping are looking beyond China.

Battery swapping “is too convenient, too economical and too logical for this not to happen at scale in Europe and the United States,” said Levi Tillemann, head of policy and international business at San Francisco-based battery swap startup Ample.

“It’s a sort of magical thinking to imagine that this is a uniquely Chinese phenomenon,” he added.

Ample, one of just a handful of battery swapping developers outside China, has raised $275 million from investors, including energy companies Shell, Repsol and Eneos, boosting its valuation to $1 billion.

It is running pilot programs with Uber (UBER.N) and car rental startup Sally, and says it is collaborating with several unnamed automakers.

“With a relatively small number of vehicles that are heavily utilized, we can deploy and operate a battery swap system profitably,” Tillemann said. “So fleets are a prime target for us.”

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Reporting by Paul Lienert in Detroit, Nick Carey in London and Norihiko Shirouzu in Beijing; Additional reporting by Victoria Valdersee in Berlin; Editing by Pravin Char

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For foreign fighters, Ukraine offers purpose, camaraderie and a cause

LVIV, Ukraine, March 7 (Reuters) – Michael Ferkol, who once served as a supply specialist with engineer battalions in the U.S. Army, had been in Rome studying archaeology when he heard the Ukrainian president’s appeal for foreign fighters.

Within days, Ferkol said, he presented himself at a military recruiting office in the western Ukrainian city of Lviv, hoping to be taken on as a frontline paramedic.

“I told them I wanted to triage patients,” said the 29-year- old, who has no combat experience. “There was a Finnish guy there too, and he was like, ‘I just want to kill Russians.'”

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Ukraine has established an “international” legion for people from abroad and President Volodymyr Zelenskiy has publicly urged foreigners to “fight side-by-side with Ukrainians against the Russian war criminals” to show support for his country. Last week, Zelenskiy said that more than 16,000 foreigners had volunteered, without specifying how many had arrived.

Some foreign fighters arriving in Ukraine say they are attracted by the cause: to halt what they view as an unprovoked attack in a once-in-a-generation showdown between the forces of democracy and dictatorship. For others, many of them veterans of Iraq and Afghanistan, the Ukraine war also offers a chance to use fighting skills they felt their own governments no longer appreciated.

Reuters interviewed 20 foreign fighters or others involved in the effort, and some said that Ukraine is struggling to vet, equip and deploy them.

And alongside battle-hardened veterans of war, people are arriving with little or no combat experience, offering limited value in a war zone under constant, terrifying shelling by the Russian military. One man who identified himself as British military veteran referred to these recruits as “bullet-catchers.”

A senior Ukrainian official in Lviv involved in processing newly-arrived foreign volunteers, Roman Shepelyak, said the system to receive, train and deploy foreign fighters was still in its infancy, and that the process would get smoother in the coming days. Ukraine’s defence ministry declined to comment.

Russia launched its invasion of Ukraine on Feb. 24, calling it a “special operation” to demilitarize Ukraine and capture dangerous nationalists. Ukraine’s armed forces are heavily outnumbered by Russia’s but have mounted significant resistance.

Among those who have arrived to fight for Ukraine are dozens of former soldiers from the British Army’s elite Parachute Regiment, according to an ex-soldier from the regiment. Hundreds more would soon follow, he said. Reuters was unable to corroborate those numbers.

Often referred to as the Paras, the regiment has in recent years served in Afghanistan and Iraq. “They’re all highly, highly trained, and have seen active service on numerous occasions,” the ex-soldier from the regiment said. The Ukraine crisis will give them purpose, camaraderie and “a chance to do what they’re good at: fight.”

Michael Ferkol said there were many people with Ukrainian ancestry in his hometown, Chicago. He wanted to go to Kyiv, the capital, “and help out.”

“I’m a little nervous, to be honest,” he said, making his way through crowds of refugees at Lviv train station on Saturday, hoping to board a train to the frontline. “But at the same time, it’s not about me. It’s about the people that are suffering.”

‘HAVE GUN WILL TRAVEL’

For some, travelling to Ukraine, even from far-away countries, was the easy part. Those who hadn’t brought body armour, helmets and other equipment with them were struggling to source them in Ukraine, according to several fighters Reuters spoke to.

Some veterans were sharing information on equipment and logistics through invite-only Facebook or WhatsApp groups with names like “Have Gun Will Travel.” These groups contain appeals for equipment, such as body armour and night-vision goggles, or for foreign veterans who are snipers or who can train Ukrainian soldiers in how to use sophisticated weapons that Western countries are sending.

With a vast mobilisation of Ukrainian men underway, the country has plenty of volunteer fighters. But there is a shortage of specialists who know how to use Javelin and NLAW anti-tank missiles, which professional soldiers train for months to use properly.

Even those with combat experience might struggle in Ukraine’s war zones, warned a former British soldier, who asked to be identified by his nickname, Kruger. He said he had served in Afghanistan and trained other soldiers.

“If you’re out here as a war tourist, this is not the place for you,” he said. “The realities of war, if you head out to the front, are going to be pretty overwhelming.”

Many of those arriving in Lviv end up at the semi-fortified offices of the Lviv regional administration, where their paperwork is checked by Shepelyak. He heads the region’s department for international technical assistance and cooperation. He acknowledged the system for processing those offering to fight was still in its infancy.

On Friday, when Reuters visited, six foreigners appeared at Shepelyak’s office, including a Polish military veteran called Michal, and a giant, heavily-tattooed Dutchman called Bert. Both men declined to give their full names.

More foreigners were arriving every day, Shepelyak told Reuters. “If they have such a desire and persuasion to serve a foreign country, it matters. They are important.”

Shepelyak said he vetted their paperwork, but not their combat experience, which was evaluated at a military base outside Lviv where they were sent next. He added that those recruited into the Ukrainian army would be paid in line with other soldiers.

Other foreign fighters told Reuters they were bypassing the formal processes and heading straight for the eastern front, hoping to get weapons and orders from the Ukrainian military upon their arrival.

DELAYED DEPARTURES

The logistical issues have prompted some fighters to delay their arrival.

Anthony Capone, a wealthy healthcare entrepreneur in New York City, said he is providing funding for hundreds of ex-soldiers and paramedics who want to go to Ukraine. But he said he had delayed their departure “to give the Ukrainian army another week to improve their enlistment process for those entering the volunteer corps.”

So far, according to Capone, only a “small number” had arrived in neighbouring Poland. Capone had posted on LinkedIn his message offering funding, thinking that 10 or 15 people would reply. “Right now, I’m at about 1,000,” he said.

Capone added he was only funding ex-soldiers whose military credentials he could verify, or paramedics who currently worked in an emergency trauma setting.

About 60% of those who had been in touch were American and 30% European, with the remainder hailing from at least 25 countries as far-flung as Colombia, Japan and Jamaica, Capone said.

Most were ex-soldiers; the rest were emergency medics or critical care nurses. They’re willing to “defend a country they’ve never visited,” said Capone, a specialist in computational learning theory.

The U.S. government has discouraged citizens from travelling to Ukraine to combat Russian forces. Some countries have issued stronger warnings, including Britain. Others, such as Canada or Germany, have cleared the way for their citizens to get involved.

A CONNECTION IN KYIV

In central Lviv on Thursday, a burly, Russian-speaking Canadian, who identified himself only as Sig, heaved bags of equipment into the back of a minivan he had bought in Poland and driven to Lviv.

He wore a flak jacket bristling with medical tools, and said he usually worked as a civilian paramedic.

Another of Sig’s four-strong team was an American who said he was born in the former Soviet republic of Georgia and had fought Russians “for generations.”

In Sig’s bags were hundreds of kilograms of equipment, including medical supplies and military rations known as MREs, or meals ready to eat. Sig said his team planned to help train Ukrainian volunteers in Lviv for a day, before heading straight for the front.

“I have a connection in Kyiv who will help us out,” he said.

Standing outside the ticket hall of Lviv station on Sunday were a group of British men in military uniform, waiting for a train to Kyiv. They were in high spirits, often exchanging fist-bumps and handshakes with Ukrainian refugees who thanked them for fighting for their country.

They were led by Ben Grant, a strapping Englishman from Essex, who said he had served in Britain’s Royal Marines and had just completed a stint as a security advisor in Iraq. He was unclear whether his men would be deployed independently or as part of a Ukrainian unit.

Of the Ukrainian soldiers, Grant added: “They seem strong – really strong. I’m more than happy to fight next to them.”

(The story has been refiled to update lede with more information about Michael Ferkol’s former role in U.S. Army and removes stray word in the lede)

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Reporting by Andrew R. C. Marshall in Lviv, Ukraine; Additional reporting by Jacqueline Thomsen and Phil Stewart in Washington, DC, and Shariq Khan and Medha Singh in Bengaluru. Editing by Cassell Bryan-Low

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Fearing junta, hundreds of Myanmar parents disown dissident children

Feb 7 (Reuters) – Every day for the last three months, an average of six or seven families in Myanmar have posted notices in the country’s state-owned newspapers cutting ties with sons, daughters, nieces, nephews and grandchildren who have publicly opposed the ruling military junta.

The notices started to appear in such numbers in November after the army, which seized power from Myanmar’s democratically elected government a year ago, announced it would take over properties of its opponents and arrest people giving shelter to protesters. Scores of raids on homes followed.

Lin Lin Bo Bo, a former car salesman who joined an armed group resisting military rule, was one of those disowned by his parents in about 570 notices reviewed by Reuters.

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“We declare we have disowned Lin Lin Bo Bo because he never listened to his parents’ will,” said the notice posted by his parents, San Win and Tin Tin Soe, in state-owned newspaper The Mirror in November.

Speaking to Reuters from a Thai border town where he is living after fleeing Myanmar, the 26-year-old said his mother had told him she was disowning him after soldiers came to their family home searching for him. A few days later, he said he cried as he read the notice in the paper.

“My comrades tried to reassure me that it was inevitable for families to do that under pressure,” he told Reuters. “But I was so heartbroken.”

Contacted by Reuters, his parents declined to comment.

Targeting families of opposition activists was a tactic used by Myanmar’s military during unrest in 2007 and the late 1980s but has been used far more frequently since the Feb.1, 2021 coup, according to Wai Hnin Pwint Thon, senior advocacy officer at rights group Burma Campaign UK, which uses the old name for the former British colony.

Publicly disowning family members, which has a long history in Myanmar’s culture, is one way to respond, said Wai Hnin Pwint Thon, who said she was seeing more such notices in the press than in the past.

“Family members are scared to be implicated in crimes,” she said. “They don’t want to be arrested, and they don’t want to be in trouble.”

A military spokesperson did not respond to Reuters questions for this story. Commenting on the notices in a news conference in November, military spokesperson Zaw Min Tun said that people who made such declarations in newspapers could still be charged if found to be supporting opposition to the junta.

VIOLENT CRACKDOWN

Hundreds of thousands of people in Myanmar, many of them young, took to the streets to protest the coup a year ago. After a violent crackdown on demonstrations by the army, some protesters fled overseas or joined armed groups in remote parts of the country. Known as People’s Defence Forces, these groups are broadly aligned with the deposed civilian government.

Over the past year, security forces have killed about 1,500 people, many of them demonstrators, and arrested nearly 12,000 people, according to the Assistance Association for Political Prisoners, a monitoring group. The military has said those figures are exaggerated.

Journalist So Pyay Aung told Reuters he filmed riot police using batons and shields to break up protests and livestreamed the video on the Democratic Voice of Burma, a news website. After authorities came searching for him, he said he hid in different locations in Myanmar before fleeing to Thailand with his wife and infant daughter. He was disowned by his father in November.

“I declare I am disowning my son because he did unforgivable activities against his parents’ wills. I will not have any responsibilities related to him,” said a notice posted by his father, Tin Aung Ko, in the state-owned Myanma Alinn newspaper.

“When I saw the newspaper that mentioned cutting ties with me, I felt a little sad,” So Pyay Aung told Reuters. “But I understand that my parents had fears of pressure. They might have worries of their house being seized or getting arrested.”

His father, Tin Aung Ko, declined to comment.

Two parents who disowned their children in similar notices, who asked not to be named for fear of attracting the attention of the military, told Reuters the notices were primarily intended to send a message to authorities that they should not be held responsible for their children’s actions.

“My daughter is doing what she believes, but I’m sure she will be worried if we got into trouble,” one mother said. “I know she can understand what I have done to her.”

Lin Lin Bo Bo said he hopes to one day go home and support his family. “I want this revolution to be over as soon as possible,” he told Reuters.

Such a reunification may be possible for some families torn apart in this way, according to Wai Hnin Pwint Thon, the rights activist.

“Unless they do it properly with lawyers and a will, then these things don’t really count legally,” she said of the disowning notices. “After a couple of years, they can go back to being family.”

So Pyay Aung, the journalist, said he fears his split with his parents is permanent.

“I don’t even have a home to go back to after the revolution,” he told Reuters. “I am so worried all the time because my parents are left under the military regime.”

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Reporting by Wa Lone and Reuters staff
Writing by John Geddie
Editing by Bill Rigby

Our Standards: The Thomson Reuters Trust Principles.

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Women force change at Indian iPhone plant, sick from bad food, crowded dorms

SRIPERUMBUDUR, India, Dec 30 (Reuters) – For women who assembled iPhones at a Foxconn plant in southern India, crowded dorms without flush toilets and food sometimes crawling with worms were problems to be endured for the paycheck.

But when tainted food sickened over 250 of the workers their anger boiled over, culminating in a rare protest that shut down a plant where 17,000 had been working.

A close look by Reuters at the events before and after the Dec. 17 protest casts a stark light on living and working conditions at Foxconn (2317.TW), a firm central to Apple’s (AAPL.O) supply chain.

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The tumult comes at a time when Apple is ramping up production of its iPhone 13 and shareholders are pushing the company to provide greater transparency about labour conditions at suppliers.

Reuters spoke to six women who worked at the Foxconn plant near Chennai. All of them requested they not to be named because of fear of retaliation on the job or from police.

Workers slept on the floor in rooms, which housed between six to 30 women, five of these workers said. Two workers said the hostel they lived in had toilets without running water.

“People living in the hostels always had some illness or the other — skin allergies, chest pain, food poisoning,” another worker, a 21-year-old woman who quit the plant after the protest, told Reuters. Earlier food poisoning cases had involved one or two workers, she said.

“We didn’t make a big deal out of it because we thought it will be fixed. But now, it affected a lot of people,” she said.

FOXCONN PLANT ON PROBATION

Apple and Foxconn said on Wednesday they found that some dormitories and dining rooms used for employees at the factory did not meet required standards.

The facility has been placed “on probation” and Apple will ensure its strict standards are met before the plant reopens, an Apple spokesperson said.

“We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented.”

The spokesperson did not elaborate on the improvements that would be made for workers at the plant or the standards that would be applied.

Laws governing housing for women workers in Tamil Nadu mandate each person be allocated at least 120 square feet of living space and require housing to adhere to hygiene and fire safety standards as laid out by local authorities.

Foxconn said it was restructuring its local management team and taking immediate steps to improve facilities. All employees would continue to be paid while it makes necessary improvements to restart operations, the company said.

Venpa Staffing Services, a Foxconn contractor that runs the dorm where workers were sickened by food poisoning, declined to comment.

The food poisoning and subsequent protests have also led to investigations, some of which are ongoing, by at least four Tamil Nadu state agencies. Officials have also privately told Foxconn to ensure better conditions, senior state government officials said.

“It is Foxconn’s responsibility,” Thangam Thennarasu, the industries minister of Tamil Nadu state told Reuters.

The Tamil Nadu state government said in a statement last week that the state had asked Foxconn to ensure that working and living conditions were improved, including the quality of housing and drinking water.

Foxconn has agreed to ensure that worker living conditions follow government recommendations and meet legal requirements, the statement said.

Apple and Foxconn did not indicate when the plant would reopen.

Foxconn had told state officials that it had “ramped up production too quickly,” though production was curtailed during April and May when the Delta variant of COVID-19 was raging in India, a senior government official from the state’s industries department told Reuters.

Taiwan-based Foxconn opened the plant in 2019 with the promise of creating up to 25,000 jobs, a boost to Prime Minister Narendra Modi’s “Make in India” campaign to create manufacturing jobs.

Sriperumbudur, a town outside Chennai where the factory is situated, is a busy industrial area with factories that make Samsung (005930.KS) and Daimler (DAIGn.DE) products nearby.

The factory is central to Apple’s efforts to shift production away from China due to tensions between Beijing and Washington. Reuters reported last year that Foxconn planned to invest up to $1 billion in the plant over three years.

Foxconn contracts out the staffing of the factory to labour brokers, who are also responsible for housing the workers – mostly women – employed there.

RATS AND POOR DRAINAGE

Following the protests, food safety inspectors visited the hostel where the bout of food poisoning occurred and closed the dorm’s kitchen after finding rats and poor drainage, Jegadish Chandra Bose, a senior food safety officer in the Thiruvallur district where the hostel is located, told Reuters.

“The samples analysed did not meet the required safety standards,” he said.

The women who work at the Foxconn plant make the equivalent of about $140 (10,500 Indian rupees) in a month and pay Foxconn’s contractor for housing and food while they work at the plant.

Most workers are between 18 and 22 and come from rural areas of Tamil Nadu, the head of a women workers’ union said. The monthly pay at the plant is more than a third higher than the minimum wage for such jobs, according to state government guidelines.

The 21-year-old worker who quit following the protest, told Reuters that her parents are farmers growing rice and sugarcane. She said she looked for a city job like many others in her village and considered the Foxconn wages good.

Several activists and academics said women recruited from farming villages to work in Sriperumbudur’s factories are seen by employers as less likely to unionise or demonstrate, a factor that made the protests at the Foxconn factory – which isn’t unionised – even more notable.

V. Gajendran, assistant professor at Madras School of Social Work in Chennai, said women recruited to work in nearby factories “typically come from larger, poor, rural families, which exposes them to exploitation and reduces their ability to unionise and fight for their rights.”

‘WE WERE ALARMED’

The food poisoning incident sent 159 women from one dorm to hospital on Dec 15, workers told Reuters. Some 100 more women needed medical attention but were not hospitalised, the Thiruvallur district administration said last week.

A rumour – later proved to be false – circulated that some of the women who had fallen sick had died. When some sick workers failed to show up for work at the factory two days later, others staged a protest when shifts were changing.

“We were alarmed and we talked among each other in the hostel and decided to protest. There was no one leader,” one of the workers told Reuters.

On December 17, about 2,000 women from the nearby Foxconn hostels took to the streets, blocking a key highway near the factory, the district administration said.

Male workers, including some from a nearby auto factory, joined a renewed protest the next day, the Foxconn workers Reuters spoke to said.

Police responded to the larger, second protest by striking the male workers and then chasing and striking some of the women involved, two workers and Sujata Mody, a local union leader who had interviewed workers told Reuters.

Police detained 67 women workers and a local journalist, confiscated their phones, and called their parents with a warning to get their daughters in line, three of those detained, local union leaders, and a lawyer who was trying to help those detained told Reuters.

Reuters could not independently confirm the descriptions of the police response.

M Sudhakar, the top police official in Kancheepuram district, denied that protesters were beaten, phones were confiscated, or that workers were intimidated by police.

“We strictly adhered to guidelines and respected the rights of those who were detained. All rules were followed,” he told Reuters.

K. Mohan, a village-level administrator who went to the hostel where the food poisoning incident occurred to investigate living conditions on Dec 16, found no safeguards to prevent COVID-19 infections, he told police in testimony reviewed by Reuters.

“I went to that place to investigate since there is a chance that this place could become a COVID cluster,” Mohan told police. “The women were made to stay in the hostel where no coronavirus guidelines were being followed.”

The unrest at Foxconn was the second involving an Apple supplier in India in a year. In December 2020, thousands of contract workers at a factory owned by Wistron Corp (3231.TW) destroyed equipment and vehicles over the alleged non-payment of wages, causing estimated damage of $60 million.

Apple had then said it placed Wistron on probation and that it would not award the Taiwanese contract manufacturer new business until it addressed the way workers were treated at the plant.

At the time, Wistron said it had worked to raise standards and fix issues at the factory, including the payroll systems. Wistron restarted operations at the plant earlier this year. Apple had no immediate comment on Wistron’s status when asked by Reuters.
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Reporting by Sudarshan Varadhan, A. Ananthalakshmi, and Ahmed Farhatha in Sriperumbudur; Additional reporting by Stephen Nellis in San Francisco, Dawn Chmielewski in Los Angeles, Chandini Monnappa and Sethuraman N R in Bengaluru and Rupam Nair in New Delhi; Editing by Sayantani Ghosh and Kevin Krolicki

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