MELBOURNE, Jan 30 (Reuters) – Rio Tinto Ltd (RIO.AX) apologised on Monday for the loss of a tiny radioactive capsule that has sparked a radiation alert across parts of the vast state of Western Australia.
The radioactive capsule, believed to have fallen from a truck, was part of a gauge used to measure the density of iron ore feed which had been entrusted to a specialist contractor to transport. The loss may have occurred up to two weeks ago.
Authorities are now grappling with the daunting task of searching along the truck’s 1,400 kilometre (870 mile) journey from north of Newman – a small town in the remote Kimberley region – to a storage facility in the northeast suburbs of Perth – a distance longer than the length of Great Britain.
The task, while akin to finding the proverbial needle in a haystack, is “not impossible” as searchers are equipped with radiation detectors, said Andrew Stuchbery who runs the department of Nuclear Physics & Accelerator Applications at the Australian National University.
“That’s like if you dangled a magnet over a haystack, it’s going to give you more of a chance,” he said.
“If the source just happened to be lying in the middle of the road you might get lucky…It’s quite radioactive so if you get close to it, it will stick out,” he said.
The gauge was picked up from Rio’s Gudai-Darri mine site on Jan. 12. When it was unpacked for inspection on Jan. 25, the gauge was found broken apart, with one of four mounting bolts missing and screws from the gauge also gone.
Authorities suspect vibrations from the truck caused the screws and the bolt to come loose, and the radioactive capsule from the gauge fell out of the package and then out of a gap in the truck.
“We are taking this incident very seriously. We recognise this is clearly very concerning and are sorry for the alarm it has caused in the Western Australian community,” Simon Trott, Rio’s iron ore division chief, said in a statement.
The silver capsule, 6 millimetres (mm) in diameter and 8 mm long, contains Caesium-137 which emits radiation equal to 10 X-rays per hour.
Authorities have recommended people stay at least five metres (16.5 feet) away as exposure could cause radiation burns or radiation sickness, though they add that the risk to the general community is relatively low.
“From what I have read, if you drive past it, the risk is equivalent to an X-ray. But if you stand next to it or you handle it, it could be very dangerous,” said Stuchbery.
The state’s emergency services department has established a hazard management team and has brought in specialised equipment that includes portable radiation survey meters to detect radiation levels across a 20-metre radius and which can be used from moving vehicles.
Trott said Rio had engaged a third-party contractor, with appropriate expertise and certification, to safely package and transport the gauge.
“We have completed radiological surveys of all areas on site where the device had been, and surveyed roads within the mine site as well as the access road leading away from the Gudai-Darri mine site,” he said, adding that Rio was also conducting its own investigation into how the loss occurred.
Analysts said that the transport of dangerous goods to and from mine sites was routine, adding that such incidents have been extremely rare and did not reflect poor safety standards on Rio’s part.
The incident is another headache for the mining giant following its 2020 destruction of two ancient and sacred rock shelters in the Pilbara region of Western Australia for an iron ore mine.
Reporting by Melanie Burton; Editing by Edwina Gibbs
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A woman makes her way in strong winds brought by Typhoon Hinnamnor in Naha, Okinawa prefecture, Japan, in this photo taken by Kyodo on September 4, 2022. Mandatory credit Kyodo/via REUTERS
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SEOUL, Sept 5 (Reuters) – Typhoon Hinnamnor neared South Korea on Monday, forcing flight cancellations, suspensions of some business operations and closures of schools, as the country raised its typhoon-alert level to its highest.
Heavy rain and strong wind pounded the southern part of the country, with the typhoon travelling northward at a speed of 24 km per hour (15 mph). Hinnamnor is expected to make landfall southwest of the port city of Busan early on Tuesday, after reaching waters off Jeju Island later on Monday.
President Yoon Suk-yeol said on Monday he will be on emergency standby, a day after ordering authorities to put all efforts into minimising damage from the typhoon that has been classified as “very strong”.
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“Very strong winds and heavy rains are expected across the country through to Tuesday due to the typhoon, with very high waves expected in the coastal region along with storm and tsunami,” the Korea Meteorological Administration (KMA) said.
According to KMA’s forecast, Hinnamnor is headed northeast toward Sapporo, Japan.
South Korea classifies typhoons in four categories – normal, strong, very strong, super strong – and Hinnamnor is expected to reach the country as a “very strong” typhoon, according to the KMA. Typhoons under that classification have wind speeds of up to 53 metres per second.
Warnings have been issued across the southern cities, including Gwangju, Busan, Daegu and Ulsan, following that in the southern island of Jeju, while the Central Disaster and Safety Countermeasures Headquarters on Sunday upgraded its typhoon alert level to the highest in its four-tier system, the first time in five years.
Busan city and its neighbouring areas have received rain throughout the weekend, with more rain forecast across the wider country for Monday and Tuesday.
No casualties have been reported so far, though more than 100 people have been evacuated and at least 11 facilities have been damaged by floods.
Steelmaker POSCO (005490.KS) told Reuters it is considering suspending some of its production processes in the city of Pohang on Tuesday, while SK Innovation (096770.KS), owner of South Korea’s top refiner SK Energy, said it asked carrier ships not to operate until the typhoon passes.
Responding to local media reports over the planned halts of their operations, South Korean shipbuilders Korea Shipbuilding & Offshore Engineering (009540.KS), Daewoo Shipbuilding & Marine Engineering (DSME) (042660.KS) and Samsung Heavy Industries, DSME said a decision on suspending its operations will be made later on Monday.
Korean Air Lines (003490.KS) and Asiana Airlines (020560.KS) have cancelled most of their Monday flights to Jeju Island, according to their websites, while budget airlines such as Air Seoul and Jin Air have cancelled some of their flights.
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Reporting by Joori Roh; Additional reporting by Joyce Lee and Heekyong Yang; Editing by Muralikumar Anantharaman
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Political stalemate leaves Iraq’s recovery in limbo
Cleric wants parliament dissolved, early elections
BAGHDAD, Aug 29 (Reuters) – Two people were killed in Baghdad on Monday after a decision by Iraq’s powerful Shi’ite Muslim cleric Moqtada al-Sadr to quit politics over a political deadlock prompted clashes between his supporters and backers of Iran-backed rivals.
Young men loyal to Sadr who took to the streets in protest at the cleric’s move skirmished with supporters of Tehran-backed groups. They hurled rocks at each other outside Baghdad’s Green Zone, which is home to ministries and embassies.
Gunfire echoed across central Baghdad, reporters said. At least some of the shots appeared to come from guns being fired into the air, although the source of all the gunfire was not immediately clear in a nation awash with arms.
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In addition to two people killed, 19 people were injured, police and medical workers said.
The clashes took place hours after Sadr announced he was withdrawing from politics, which prompted his supporters, who had been staging a weeks-long sit-in at parliament in the Green Zone, to demonstrate and storm the main cabinet headquarters.
Iraq’s army declared a curfew from 3:30 p.m. (1230 GMT) and urged the protesters to leave the Green Zone.
During the stalemate over forming a new government, Sadr has galvanised his legions of backers, throwing into disarray Iraq’s effort to recover from decades of conflict and sanctions and its bid to tackle sectarian strife and rampant corruption.
Sadr, who has drawn broad support by opposing both U.S. and Iranian influence on Iraqi politics, was the biggest winner from an October election but withdrew all his lawmakers from parliament in June after he failed to form a government that excluded his rivals, mostly Tehran-backed Shi’ite parties.
Sadr has insisted on early elections and the dissolution of parliament. He says no politician who has been in power since the U.S. invasion in 2003 can hold office.
“I hereby announce my final withdrawal,” Sadr said in a statement posted on Twitter, criticising fellow Shi’ite political leaders for failing to heed his calls for reform.
He did not elaborate on the closure of his offices, but said that cultural and religious institutions would remain open.
IMPASSE
Sadr has withdrawn from politics and the government in the past and has also disbanded militias loyal to him. But he retains widespread influence over state institutions and controls a paramilitary group with thousands of members.
He has often returned to political activity after similar announcements, although the current deadlock in Iraq appears harder to resolve than previous periods of dysfunction.
The current impasse between Sadr and Shi’ite rivals has given Iraq its longest run without a government.
Supporters of the mercurial cleric then stormed Baghdad’s central government zone. Since then, they have occupied parliament, halting the process to choose a new president and prime minister.
Sadr’s ally Mustafa al-Kadhimi, who remains caretaker prime minister, suspended cabinet meetings until further notice after Sadrist protesters stormed the government headquarters on Monday.
Iraq has struggled to recover since the defeat of Islamic State in 2017 because political parties have squabbled over power and the vast oil wealth possessed by Iraq, OPEC’s second-largest producer.
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Reporting John Davison in Baghdad, Amina Ismail in Erbil, Iraq; Additional reporting by Alaa Swilam; Writing by Lina Najem; Editing by John Stonestreet and Edmund Blair
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Ford CEO Jim Farley attends the official launch of the all-new Ford F-150 Lightning electric pickup truck at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan, U.S. April 26, 2022. REUTERS/Rebecca Cook/File Photo
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DETROIT, July 21 (Reuters) – Ford Motor Co (F.N) on Thursday announced a series of deals to accelerate its shift to electric vehicles, including sourcing battery capacity and raw materials from such companies as Chinese battery maker CATL (300750.SZ) and Australian mining giant Rio Tinto (RIO.AX).
The deals are part of Ford’s push to have its annual EV production rate globally reach 600,000 vehicles by late 2023 and more than 2 million by the end of 2026. Ford said it expects a compound annual growth rate for EVs to top 90% through 2026, more than doubling the forecast industry growth rate.
“We are putting the industrial system in place to scale quickly,” Ford Chief Executive Jim Farley said in a statement.
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In March, Ford boosted its planned spending on EVs through 2026 to $50 billion from its prior target of $30 billion, and reorganized its operations into separate units focused on EVs and gasoline-powered vehicles with Ford Model e and Ford Blue, respectively. read more
The Dearborn, Michigan-based company also said at the time that its EV business would not be profitable until the next-generation models begin production in 2025.
As part of its push to boost capacity, Ford said it is adding lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, alongside nickel cobalt manganese (NCM). Ford said it has secured all of the 60 gigawatt hours (GWh) of cell capacity needed to support the 600,000 run rate.
The U.S. automaker said CATL will provide full LFP battery packs for the Mustang Mach-E crossovers for North America starting next year as well as the F-150 Lightning pickups in early 2024.
The company is also working with LG Energy Solution and its long-time battery partner SK Innovation.(096770.KS)
Ford said it has now sourced about 70% of the battery cell capacity it needs to achieve its annual production rate of more than 2 million by late 2026.
To support the battery cell deals, Ford said it is direct sourcing battery cell raw materials as well, announcing deals to acquire most of the nickel needed through 2026 and beyond through agreements with Vale SA’s units in Canada and Indonesia, China’s Huayou Cobalt (603799.SS) and BHP .
It has also locked in lithium contracts through agreements with Rio Tinto, exploring a “significant” lithium off-take agreement from the mining company’s Rincon project in Argentina, Ford said. That is part of a multi-metal agreement that leverages Rio Tinto’s aluminum business and includes a potential opportunity on copper.
Ford announced other battery material deals. It signed a letter of intent with EcoPro BM and SK On to establish a cathode production plant in North America, an offtake agreement for ioneer Ltd (INR.AX) to supply lithium carbonate from Nevada beyond 2025, an agreement with Compass Minerals for lithium hydroxide and lithium carbonate from Utah, and an agreement for Syrah Resources(SYR.AX) and SK On for natural graphite from Louisiana.
The drive to the 600,000 EV run rate by late 2023 includes 270,000 Mustang Mach-E crossovers, 150,000 F-150 Lightning pickups, 150,000 Transit vans and 30,000 units of a new SUV for Europe whose production will significantly increase in 2024.
(This story corrects mention to Rio Tinto’s aluminum business, not Ford’s in paragraph 11)
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Reporting by Ben Klayman in Detroit; Editing by Bernadette Baum
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LONDON, May 15 (Reuters) – White brightly burning munitions were shown cascading down on the Azovstal steel works in the Ukrainian port city of Mariupol in what a British military expert said looked like either an attack with phosphorus or incendiary weapons.
Reuters was not able to immediately identify the type of munitions being used or when the video was taken. It was posted on Sunday on the Telegram messaging application by Alexander Khodakovsky, a commander of the pro-Russian self-proclaimed republic of Donetsk.
“If you didn’t know what it is and for what purpose – you could say that it’s even beautiful,” Khodakovsky said in a message beside the video. Khodakovsky could not be immediately reached for comment.
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It was not immediately clear which forces had fired the munitions, or from where.
Russian forces have pummeled Mariupol for nearly two months, but some Ukrainian fighters remain holed up in the vast Soviet-era plant founded under Josef Stalin and designed with a labyrinth of bunkers and tunnels to withstand attack.
Russia has not commented on what specific weapons it has used to attack the plant. The Russian defence ministry did not reply to a written request for comment about the video.
A view of a plant of Azovstal Iron and Steel Works damaged during showers of brightly-burning munitions, amid Russia’s invasion of Ukraine, in Mariupol, Ukraine, in this undated still image obtained from a handout video released on May 15, 2022.
White phosphorus munitions can be used on battlefields to make smoke screens, generate illumination, mark targets or burn bunkers and buildings. White phosphorus is not banned as a chemical weapon under international conventions.
Human rights groups have urged a ban on the use of phosphorus munitions because of the severe burns they cause. The United States used phosphorus munitions in the Vietnam war and the 2003-2011 Iraq war. Russia used them in the Chechen wars.
Petro Andryushchenko, an aide to Mariupol’s mayor, said that Russia had used incendiary or phosphorous bombs on Azovstal. Andryushchenko was speaking from Ukrainian-controlled territory. Reuters was unable to immediately verify his comments.
Hamish Stephen de Bretton-Gordon, a former commanding officer of Britain’s Joint Chemical, Biological, Radiological and Nuclear Regiment, said it looked very like phosphorus in the video, but only a sample could give absolute confirmation.
“It does look very much like white phosphorus rockets or artillery shells which are exploding just above the ground or upon the ground,” he told Reuters.
“It could possibly be Russian incendiary rockets as well but I have certainly seen a lot of white phosphorus in particularly Syria and it looks very much like that to me,” he said.
While some Ukrainian fighters are still in bunkers at the steel plant, civilians have been evacuated.
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Additional reporting by Tom Balmforth in Kyiv; Writing by Guy Faulconbridge; Editing by David Clarke
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May 10 (Reuters) – Tesla Inc (TSLA.O) is open to buying a mining company if producing its own supply of electric vehicle (EV) metals would speed up worldwide adoption of clean energy technologies, Chief Executive Officer Elon Musk said on Tuesday.
Concern is mounting across the EV industry that there may not be enough supply of lithium, nickel, copper and other metals to match demand later this decade, fueling questions about whether Tesla would consider jumping into the mining sector.
“It’s not out of the question,” Musk told the FT Future of the Car 2022 conference. “We will address whatever limitations are on accelerating the world’s transition to sustainable energy. It’s not that we wish to buy mining companies, but if that’s the only way to accelerate the transition, then we will do that.”
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While the auto giant has EV metals contracts with suppliers across the globe, its goal to produce 20 million vehicles annually by 2030 – what Musk called an “aspiration, not a promise” – will require vastly more supplies of metals. Tesla produced just under 1 million EVs last year.
Other automakers and executives including Carlos Tavares, the CEO of Tesla rival Stellantis NV (STLA.MI), have warned the auto industry faces a metals supply shortage.
Tesla has no experience with the time-intensive and laborious task of building and operating a mine, so industry analysts have advised the automaker to focus on buying an existing operator.
Many in the mining industry have noted that buying an existing metals producer would cost far less than the $43 billion Musk offered to personally buy social media network Twitter Inc (TWTR.N)earlier this year.
Tesla has lithium supply deals with Ganfeng Lithium Co (002460.SZ), Livent Corp (LTHM.N)and Albemarle Corp(ALB.N), among others. The company’s lithium supply deal with Piedmont Lithium Inc (PLL.O) was put on hold last year.
Tesla has nickel supply deals with ValeSA (VALE3.SA) and Talon Metals Corp(TLO.TO).
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Reporting by Ernest Scheyder; additional reporting by Eva Matthews, Bernard Orr
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A view shows the gates of the Illich Steel and Iron Works damaged during Ukraine-Russia conflict in the southern port city of Mariupol, Ukraine April 15, 2022. REUTERS/Alexander Ermochenko/File Photo
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KYIV, April 16 (Reuters) – Ukraine’s richest man has pledged to help rebuild the besieged city of Mariupol, a place close to his heart where he owns two vast steelworks that he says will once again compete globally.
Rinat Akhmetov has seen his business empire shattered by eight years of fighting in Ukraine’s east but remains defiant, sure that what he calls “our brave soldiers” will defend the Sea of Azov city reduced to a wasteland by seven weeks of bombardment.
For now, though, his Metinvest company, Ukraine’s biggest steelmaker, has announced it cannot deliver its supply contracts and while his financial and industrial SCM Group is servicing its debt obligations, his private power producer DTEK “has optimised payment of its debts” in an agreement with creditors.
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“Mariupol is a global tragedy and a global example of heroism. For me, Mariupol has been and will always be a Ukrainian city,” Akhmetov said in written answers to questions from Reuters.
“I believe that our brave soldiers will defend the city, though I understand how difficult and hard it is for them,” he said, adding he was in daily contact with the Metinvest managers who run the Azovstal and Illich Iron and Steel Works plants in Mariupol.
On Friday, Metinvest said it would never operate under Russian occupation and that the Mariupol siege had disabled more than a third of Ukraine’s metallurgy production capacity. read more
Akhmetov praised President Volodymyr Zelenskiy’s “passion and professionalism” during the war, seemingly smoothing relations after the Ukrainian leader last year said plotters hoping to overthrow his government had tried to involve the businessman.
Akhmetov called the allegation “an absolute lie” at the time.
“And the war is certainly not the time to be at odds… We will rebuild the entire Ukraine,” he said, adding that he returned to the country on Feb. 23 and had been there ever since.
‘A MARSHALL PLAN FOR UKRAINE’
Akhmetov did not say where exactly he was, but that he had been in Mariupol on Feb. 16, the day some western intelligence services had expected the invasion to begin. “I talked to people in the streets, I met with workers…,” he said.
“My ambition is to return to a Ukrainian Mariupol and implement our (new production) plans so that Mariupol-produced steel can compete in global markets as before.”
Russia invaded on Feb. 24 when President Vladimir Putin announced a “special operation” to demilitarise and “denazify” the country. Kyiv and its Western allies reject that as a false pretext for an unprovoked attack.
Akhmetov, long Ukraine’s richest man, has seen his business empire shrink since 2014, when Russia annexed the Black Sea peninsula of Crimea and two eastern Ukrainian regions – Donetsk and Luhansk – proclaimed independence from Kyiv.
According to Forbes magazine, Akhmetov’s net worth in 2013 reached $15.4 billion. It currently stands at $3.9 billion.
“For us, the war broke out in 2014. We lost all of our assets both in Crimea and in the temporarily occupied territory of Donbas. We lost our businesses, but it made us tougher and stronger,” he said.
“I am confident that, as the country’s biggest private business, SCM will play a key role in the post-war reconstruction of Ukraine,” he said, citing officials as saying the damage from the war has reached $1 trillion.
“We will definitely need an unprecedented international reconstruction programme, a Marshall Plan for Ukraine,” he said, in reference to the U.S. aid project that helped rebuild Western Europe after World War Two.
“I trust that we all will rebuild a free, European, democratic, and successful Ukraine after our victory in this war.”
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Reporting by Elizabeth Piper; editing by John Stonestreet
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UK sanctions seven more oligarchs it links to Kremlin
Group includes Chelsea owner Abramovich
Chelsea sale put on hold, UK might sell club
Trading suspended in Evraz shares
LONDON, March 10 (Reuters) – Britain imposed sanctions on Chelsea soccer club owner Roman Abramovich and Igor Sechin, the chief executive of Russian oil giant Rosneft, hitting them with asset freezes and travel bans because of their links to Russian President Vladimir Putin.
The two billionaires plus Oleg Deripaska and four other Russian oligarchs are the most high-profile businessmen to be added to the British sanctions list since Russia’s invasion of Ukraine. The move follows criticism that Britain has been acting too slowly.
The action puts on ice Abramovich’s plans to sell the Premier League club, effectively placing the current European champions under government control. The team can carry on playing but the government said it was open to selling the club so long as Abramovich himself did not benefit. read more
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“There can be no safe havens for those who have supported Putin’s vicious assault on Ukraine,” Prime Minister Boris Johnson said.
“We will be ruthless in pursuing those who enable the killing of civilians, destruction of hospitals and illegal occupation of sovereign allies.”
There had been loud calls from British lawmakers for action to be taken against Abramovich and other Russian oligarchs, with criticism that Johnson’s government was not moving fast enough compared to the European Union and the United States.
Sechin, who Britain described as Putin’s right-hand man, was already on the U.S. and EU sanctions lists and last week French authorities seized his yacht. read more
Since the invasion of Ukraine, which Moscow describes as a “special military operation”, Britain has imposed sanctions on about 20 Russian-linked figures. The EU announced new sanctions on Wednesday against 14 more oligarchs, meaning its restrictions apply to 862 people and 53 entities. read more
15 BILLION POUNDS
The others added to the British list were Deripaska, who has stakes in En+ Group, Dmitri Lebedev, chairman of Bank Rossiya, Alexei Miller, the chief executive of energy company Gazprom, and Nikolai Tokarev, the president of the Russia state-owned pipeline company Transneft.
In total Britain said the seven figures, who with the exception of Abramovich had previously been sanctioned by the United States or the EU, had a collective net worth of 15 billion pounds. ($19.74 billion).
Thursday’s action means Abramovich is banned from carrying out transactions with any British individuals and businesses, and cannot enter or stay in Britain. His spokeswoman declined comment.
The 55-year-old, who has Israeli and Portuguese citizenship, became one of Russia’s most powerful businessmen by earning fabulous fortunes after the 1991 break-up of the Soviet Union. Forbes has put his net worth at $13.3 billion.
He bought Chelsea in 2003 for a reported 140 million pounds and his investment contributed hugely to the most successful era in the team’s history as they won five Premier League titles, five FA Cups and the Champions League twice.
They beat Brazilian side Palmeiras in February to become FIFA Club World Cup champions for the first time, having defeated fellow English side Manchester City to become European champions last season.
Last week, Abramovich announced he would sell Chelsea and donate money from the sale to help victims of the war in Ukraine. Johnson’s spokesman said the government was open to selling the club but it would require another licence. read more
A shop selling the merchandise of Chelsea Football Club is seen closed after Britain imposed sanctions on its Russian owner, Roman Abramovich, in London, Britain, March 10, 2022. REUTERS/Hannah Mckay
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“If the club is sold, Abramovich will not benefit,” sports minister Nadine Dorries told reporters. read more
The government has issued a special licence to allow Chelsea to play fixtures and pay staff, but will limit the sale of tickets and merchandise. read more
Anita Clifford, a lawyer who specialises in asset freezing and sanctions matters, said the measures temporarily deprived Abramovich of his assets but Chelsea could be sold with his and the government’s agreement. The money could potentially go to help Ukrainian war victims.
“The proceeds…would be frozen too and would not simply flow to the designated person unless there was a licence or agreement in place to either cover this, or cover the proceeds going to a nominated beneficiary which both parties considered appropriate,” she told Reuters.
The entry on the British sanctions list described Abramovich, who Britain said was worth 9 billion pounds, as “a prominent Russian businessman and pro-Kremlin oligarch who had enjoyed “a close relationship for decades” with Putin.
This association had brought Abramovich financial or material benefit from either Putin directly or the Russian government, it said.
It said he was “involved in destabilising Ukraine” and undermining its sovereignty and independence via the London-listed Russian steelmaker Evraz (EVRE.L) in which he is the biggest shareholder.
Britain’s financial watchdog suspended trading of shares in Evraz, which plummeted 16% after the sanctions were announced.
Evraz has been involved in providing financial services, or funds, goods or technology that could damage Ukraine’s independence including providing steel that might be used to make Russian tanks, the British treasury said.
Abramovich could apply to the foreign office for an internal review of the asset freeze, or apply to the High Court in London for a review of the decision, a process that could take 18 months or longer, Clifford said.
‘LONDONGRAD’
London has long been a top destination for Russian money, with wealthy Russians using it as a luxury playground and educating their children at fee-paying schools. It has earned the nickname Londongrad.
Johnson’s critics, who point out his Conservative Party has close ties to Russian donors who have donated about 1.9 million pounds since he came to power, say the government has been slow to impose sanctions and asset freezes on the oligarchs and those close to Putin’s administration.
Opposition lawmakers said the news of the sanctions was welcome but they had taken far too long.
“This is the right decision. But it should not have taken the government weeks,” said David Lammy, foreign affairs spokesman for the Labour Party.
“Too few oligarchs linked to Putin’s rogue regime have so far faced sanctions from the UK government. We are lagging far behind allies in the EU and the US.”
($1 = 0.7599 pounds)
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Reporting by Kate Holton, Alistair Smout, and Paul Sandle; writing by Michael Holden; editing by William James, Frank Jack Daniel and Angus MacSwan
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Feb 25 (Reuters) – Several companies, including automakers Volkswagen (VOWG_p.DE) and Renault (RENA.PA) and tire maker Nokian Tyres (TYRES.HE), on Friday outlined plans to shut or shift manufacturing operations following Russia’s invasion of Ukraine.
After invading earlier this week, Russian forces pressed their advance on Friday as missiles pounded Kyiv and authorities said they were girding for an assault aimed at overthrowing the government. read more
The United States announced sweeping export restrictions against Russia on Thursday, hammering its access to global exports of goods ranging from commercial electronics and computers to semiconductors and aircraft parts. That could lead companies to alter manufacturing plans or seek alternative supply lines. read more
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The invasion was a factor in consulting firms J.D. Power and LMC Automotive slashing their 2022 global new-car sales outlook by 400,000 vehicles to 85.8 million units. The auto industry had already been dealing with a tight supply of vehicles due to the global semiconductor shortage. read more
“An already-tight supply of vehicles and high prices across the globe will be under added pressure based on the severity and duration of the conflict in Ukraine,” said Jeff Schuster, president of global vehicle forecasts at LMC.
“Rising oil and aluminum prices will likely affect consumers’ willingness and ability to purchase vehicles, even if inventory improves,” he added. “We have made significant downgrades to the Ukraine and Russia forecasts due to the escalating conflict between the two and the repercussions associated with sanctions against Russia.”
The conflict could boost oil prices above $100 a barrel, which would add inflationary pressure on European and American consumers, Wells Fargo analyst Colin Langan said in a research note. While consumers have been willing to pay above sticker price to get new vehicles, sustained higher gas prices could impact long-term recovery, he said.
Germany’s Volkswagen said it would halt production for a few days at two German factories after a delay in getting parts made in Ukraine. read more
France’s Renault said it would suspend some operations at its car assembly plants in Russia next week due to logistics bottlenecks caused by parts shortages. It did not specify whether its supply chain had been hit by the conflict, but a spokeswoman said the action was a consequence of reinforced borders between Russia and neighboring countries through which parts are carried by truck. read more
The carmaker is among Western companies most exposed to Russia, where it makes 8% of its core earnings according to Citibank.
“Interruptions are primarily caused by tighter border controls in transit countries and the forced need to change a number of established logistics routes,” the company’s Russian unit said, without naming any countries.
Russian carmaker Avtovaz (AVAZI_p.MM), controlled by Renault, also said it might suspend some assembly lines at a plant in central Russia for one day, on Monday, due to a persistent global shortage of electronic components. Avtovaz also did not mention the invasion in its statement. read more
Finnish tire maker Nokian said it was shifting production of some key product lines from Russia to Finland and the United States to prepare for possible further sanctions following the invasion. read more
MANAGING DISRUPTION
Aptiv Chief Executive Kevin Clark said on Thursday that over the last couple of months the American auto parts maker had swapped high-volume parts work out of Ukraine in favor of lower-volume products “so we were better-positioned to manage disruption.” read more
Japanese auto supplier Sumitomo Electric Industries , which employs some 6,000 people in Ukraine to make wire harnesses, said it suspended operations at its factories there and was talking to clients about potentially substituting supplies from other places. read more
Ford Motor Co (F.N) has a 50% joint venture in Ford Sollers, which has three assembly plants in Russia according to the Ford website. Ford said in a statement it was “deeply concerned” about the situation and would “manage any effects” on its business in real time.
The U.S. automaker also said it would follow any laws on trade sanctions, but declined to discuss whether the Sollers plants have been affected.
While French car parts maker Valeo (VLOF.PA) said the direct impact on the company is minimal, the invasion could drag down industry production volumes, and hike energy or raw material prices.
For automakers, one of the supply-chain concerns created by the Ukraine conflict centers on the metals palladium, platinum and rhodium used in exhaust-scrubbing catalytic converters.
Russia produces about 38% of the world’s palladium, excluding recycled material, said Mark Wakefield, co-leader of consulting firm AlixPartners global automotive practice.
“It’s hard to think of a global auto business that doesn’t have palladium coming from Russia,” he said.
Automakers should not face an immediate shortage of palladium, Wakefield said, because there are stocks of the metal in London. There is “a six-month journey before palladium finds its way into a car,” he said.
Aluminum prices had been rising before the Ukraine conflict, Wakefield said. A cutoff of Russian aluminum supplies would add to the cost pressures on automakers.
Japan’s biggest steelmaker, Nippon Steel Corp , said on Friday it would secure alternatives for a raw material it buys from Russia and Ukraine in the event of any supply disruptions.
Nippon Steel buys 14% of its iron ore pellets, small balls of iron ore powder used in steel production, from those countries. Officials said it switched sourcing to Brazil and Australia and the impact should be minimal.
Agricultural equipment maker Deere & Co (DE.N) said on Friday it had closed its Ukraine office in recent weeks as a precautionary measure. It employs about 40 people in Ukraine.
Meanwhile, Russia said it was partially limiting access to Meta Platforms Inc’s (FB.O) Facebook, accusing it of “censoring” Russian media. read more
Delta Air Lines Inc (DAL.N), which does not operate services to Ukraine or Russia, said on Friday it had suspended its codesharing service with Russian airline Aeroflot. (AFLT.MM) read more
Amazon.com Inc’s home security subsidiary, Ring, said it was coordinating closely with its partners at Squad in Ukraine “to support the safety and well-being of the team and their families.” According to LinkedIn data, Squad employs more than 700 people, some of whom worked for the research arm Ring Ukraine until about a year ago.
Amazon had no additional comment about its footprint in Ukraine or Russia, or on how U.S. trade actions would impact its business, if at all.
Toronto-based Kinross Gold Corp (K.TO) said its underground Kupol gold mine in Russia’s far northeast corner is operating normally. Nearly all of the company’s employees in the country are Russian, and Kupol has stored a full year’s worth of supplies on site, given that it operates in a cold region, the company said.
Kinross added it was reviewing the latest sanctions against Russia to see how they could affect operations.
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Reporting by Ben Klayman in Detroit, Additional reporting by Gilles Guillaume in Paris, Tom Sims in Frankfurt, Joseph White in Detroit, Ernest Scheyder in Houston and Jeffrey Dastin in San Francisco
Editing by Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.
Rio releases external review of its workplace culture
Report finds widespread bullying, sexual harassment, racism
Rio CEO says findings “extremely disturbing”
Company says accepts all 26 recommendations
Feb 1 (Reuters) – A report released by Rio Tinto (RIO.AX), (RIO.L) on Tuesday outlined a culture of bullying, harassment and racism at the global mining giant, including 21 complaints of actual or attempted rape or sexual assault over the past five years.
Nearly half of all employees who responded to an external review of the miner’s workplace culture commissioned by Rio said they had been bullied, while racism was found to be common across a number of areas.
Rio Tinto Chief Executive Jakob Stausholm said the results were “disturbing” and the company would implement all 26 recommendations from the report by former Australian sex discrimination commissioner Elizabeth Broderick.
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“The eye opener for me was two-fold,” Stausholm told Reuters. “I hadn’t realised how much bullying exists in the company and secondly that it’s quite systemic – the three issues of bullying, sexual harassment and racism … that’s extremely disturbing.”
Rio Tinto launched the review in March last year, not long after Stausholm took over the top job in the wake of a widespread backlash against the company after it blasted the 46,000-year-old Juukan Gorge rock shelters to expand an iron ore mine.
More than 10,000 employees, nearly a quarter of its 45,000-strong workplace shared their experiences and views for the study.
The report found nearly 30% women and about 7% of men have experienced sexual harassment at work, with 21 women reporting actual or attempted rape or sexual assault.
Racism was a “significant challenge” for employees at many locations. People working in a country different to their birth experienced high rates of racism while nearly 40% of men who identify as Aboriginal or Torres Strait Islander in Australia had experienced racism.
“I have copped racism in every single corner of this company,” one employee was anonymously quoted as saying.
Rio said reforms will focus on a commitment from the company’s leadership to create a safe and inclusive working environment, including by increasing diversity within the company. It would also ensure the company’s remote mine site facilities are safe, and make it easier for staff to call out unacceptable behaviours.
“Clearly much more needs to be done to ensure the safety of workers in the resources sector,” said Owen Whittle, Secretary for UnionsWA, which represents over 30 workers groups which have over 150,000 members in Western Australia.
“With nearly half of the workforce reporting bullying, it is clear that they have failed workers over a long period of time and need to do far more to prevent harassment and bullying in workplaces,” he said.
SEXISM, RACISM
The Rio report comes ahead of the release of another report by the West Australia state government later this year on sexual harassment at mining camps in the state, which provides more than half of the world’s supply of iron ore.
Submissions to the inquiry last year said sexual harassment was rife at mining camps in Western Australia, which is home to mines of global firms including BHP Group (BHP.AX), Rio Tinto and Fortescue (FMG.AX).
A Western Australia state minister, Rita Saffioti, told Australia’s ABC News that she was very disturbed by the number of allegations.
“You want everyone to be able to feel safe in their workplace. Also in particular in those areas where you’re a bit more isolated from friends and family and you want to have the utmost protection from having that type of behaviour,” she said.
In a 2020 report, an Australian Human Rights Commission inquiry into sexual harassment found that 74% of women in the mining industry had experienced some form of sexual harassment in the past five years, partly due to a gender imbalance.
Nearly 80% of Rio Tinto’s workforce is male.
“Creating a safe, respectful work culture will encourage people of all backgrounds and diversity to thrive in our organisations,” Kellie Parker, the Australian CEO for Rio Tinto told Reuters.
Male and female employees in South Africa experienced the highest rates of racism. Employees spoke of the frequency of racism and its impacts on their confidence, self-esteem and work performance.
“Rio is a Caucasian oriented company,” one employee said in the report.
Rio said the report came at a pivotal time as workplace cultures shift against the backdrop of #MeToo, Black Lives Matter and other global movements, as well as an Australian inquiry into Rio’s destruction of Juukan Gorge, culturally significant rock shelters.
Stausholm said Juukan Gorge had triggered the biggest management change in the history of Rio and the new team wanted to drive more change.
“Its a matter of using the momentum of the moment now and try to move these actions forward fast because we cannot change these from one day to another.”
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Reporting by Praveen Menon; editing by Richard Pullin
Our Standards: The Thomson Reuters Trust Principles.