Articles in Category: Logistics

President Donald Trump said today that his administration has approved the Keystone XL pipeline, reversing the Obama administration’s decision to block the oil transportation project.

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Speaking from the Oval Office, Trump officially announced the approval shortly after the State Department issued TransCanada‘s permit, making good on one of his campaign promises. The approval greenlights the Canadian company to complete construction on the pipeline that will funnel crude oil from Canada to refineries on the Gulf Coast.

The American Petroleum Institute praised the approval.

“Today’s action to approve the Keystone XL pipeline’s cross-border permit is welcome news and is critical to creating American jobs, growing the economy, and making our nation more energy secure,” said API President and CEO Jack Gerard. “This critical infrastructure project has been studied longer than any pipeline project in U.S. history with exhaustive reviews by the State Department concluding that the project is safe for the environment and the best option for transporting domestic crude and Canadian oil to U.S. refineries.”

The 1,179-mile addition to existing pipelines that will stretch from Alberta, Canada to the U.S. Gulf Coast is estimated to create 42,000 construction jobs but only 35 full-time, maintenance positions once it’s completed.

Lopez Allows Suspended Mines to Ship Out Stockpiled Nickel Ore

The Philippines’ environment ministry, led by Environment and Natural Resources Secretary Regina Lopez, has allowed eight suspended nickel ore miners to ship out stockpiles of mined ore, sources told Reuters, temporarily boosting supply from the world’s top exporter of the raw metal after a major crackdown.

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More than half of all the mines in the Philippines have been ordered to permanently shut to protect watersheds in an eight-month campaign led by Lopez.

Two requests for proposals were released yesterday by Customs and Border Protection for the planned border wall between the U.S. and Mexico along the southern border in several states.

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New descriptions in the RFPs include this language: “CBP seeks highly qualified Contractors to assist in the development of a new border wall design standard as well as construct border wall and supporting tactical infrastructure/technology along the southwest border. CBP seeks highly qualified Contractors to propose a reinforced solid concrete wall that meets or exceeds CBP’s performance requirements. The proposed prototype designs shall not include the use of proprietary design or equipment. CBP plans to enter into multiple-award, indefinite-delivery, indefinite-quantity (IDIQ), task order contracts for Border Wall Design/Build Construction. The IDIQ may include various, simultaneous task orders ranging from $100,000 up to $275,000,000 per task order.

“CBP anticipates awarding IDIQ contracts to multiple Contractors. All selected Contractors will be awarded one (1) task order to construct its proposed prototype.”

The RFP goes on to state that “the prototypes will inform future design standard(s) which will likely continue to evolve to meet USBP’s requirements. Any and all prototypes will be designed to deter illegal entry into the United States. Through the prototyping process, CBP may identify new designs or influences for new designs that will expand the current border barrier toolkit that CBP will use to construct a border wall system. The border barrier toolkit is based on USBP’s requirements.”

Steel Industry Supports Revisiting Auto Emissions Standards

The American Iron and Steel Institute, the largest trade body representing the steel industry,  issued a statement in reaction to the Trump administration’s recent announcement that it is re-examining fuel-economy standards set by the Obama administration for 2022-2025 model year light-duty vehicles.

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“AISI is pleased the administration has withdrawn the final determination of the EPA Light Duty Vehicle Emission Standards issued in January,” Thomas J. Gibson, president and CEO of AISI said in the statement. “As a key materials solutions provider, we look forward to a dialogue between EPA, National Highway Traffic Safety Administration, California Air Resources Board, auto manufacturers and other relevant stakeholders on the Mid-Term Evaluation. The steel industry is making investments in new grades of lightweight, high-strength steels to assist our automotive customers in reducing emissions and improving fuel economy performance.  We are confident that getting the partnership between the government and stakeholders back on track will result in a plan for the future which protects the environment by establishing a common sense, implementable single national program for CAFE and GHG standards.”

U.S. infrastructure was given a near-failing grade of D+ by the American Society of Civil Engineers (ASCE) yesterday, the largest trade association of the civil engineering profession in the U.S. This was the second time in two reports that our national roads, bridges, railways, airports, dams and other infrastructure sites barely avoided the dreaded F.  The criticism could give momentum to President Donald Trump’s vow of a $1 trillion investment to rebuild everything from roads to dams.

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The D+ grade from the American Society of Civil Engineers‘ (ASCE) is unchanged from its last report card in 2013, suggesting that only minor progress had been made in improving public works.

The ASCE estimated in a statement that the United States needed to invest $4.59 trillion by 2025 to bring its infrastructure to an adequate B- grade, a figure about $2 trillion higher than current funding levels.

Chinese Steel Exports Plummet

Chinese steel exports tumbled to a three-year low in February, customs data showed on Wednesday, lower than expectations, as steelmakers in the world’s top producer shifted to meeting rising demand at home.

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Shipments for the month were 5.75 million metric tons, the lowest since February 2014, data from the General Administration of Customs showed. It was down 29.1% from a year ago and down 22.5% from January.

A Washington, D.C. federal judge refused Monday to halt construction and drilling on the recently approved, eight-mile final stage of the Dakota Access pipeline, rejecting the Cheyenne River Sioux Tribe’s plea for a temporary restraining order to ostensibly protect a religiously and culturally significant lake.

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A similar challenge was rejected by another federal judge last year.

Philippines Environment Czar Cancels 75 Mining Contracts

The Philippines’  Environment Ministry, under the direction of Environment and Natural Resources Secretary Regina Lopez, on Tuesday ordered the cancellation of 75 mining contracts, stepping up a campaign to stop extraction of resources in sensitive areas after earlier shutting more than half of the country’s operating mines, Reuters reported. The contracts are all in watershed zones, with many in the exploration stage.

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They cover projects not yet in production and the latest action by Lopez suggests she will not allow them to be developed further. The move turns up the heat in her battle with the mining sector after she ordered the closure of 23 of the country’s 41 mines earlier this month on environmental grounds.

The Trump administration is reportedly considering an executive order that would suspend the conflict minerals rule of the Dodd-Frank banking regulation bill.

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The conflict mineral rule requires reporting of supply chains to enforce a ban on tin, tantalum, tungsten and gold from the Democratic Republic of the Congo. It’s backed by human-rights groups but many businesses say the rule, as is, requires a swath of industries to investigate whether their products contain metals that could have been sold by armed groups so far down their supply chains that it’s impossible to tell where it came from. Reporting has been spotty even under the current rules.

The proposed executive action, drafted last week and reviewed Wednesday by The Wall Street Journal, would suspend the conflict-minerals rule for two years. Business groups have fought the rule in court, saying its requirements are costly and burdensome.

US Sells Crude Oil From Strategic Reserve

10 million barrels of crude from the U.S.’s strategic reserve are scheduled to be sold later this month, the Department of Energy said.

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The shipment is part of a total 25 million barrels, to be sold over a period of three years, as per the 21st Century Cures Act, signed in December last year.

Initial panic in India over reports of an executive order to be signed by U.S. President Donald J. Trump tightening the non-immigrant H-1B visa regime has subsided. Outsourcers, primarily from India, are the top recipients of H-1B visas, managing the technology departments of large U..S corporations with imported staff.

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From anxiety, the mood here has now dropped to a “wait and see” one. The Government of India has tried to allay fears by saying no such executive order has been passed and Foreign Ministry spokesman Vikas Swarup explained to the media that three private bills in the matter had been introduced in the U.S. House of Representatives, adding that such bills had been introduced in the past, too, and the mere introduction of them is nothing new. For now, the government does not want to say anything more, since the bills have to go through the full Congressional process.

Panic at the IT Department

Analysts say the panic was natural since news about the likely change in the H-1B visa rules came soon after the new President banned refugees and travelers from seven predominantly Muslim countries from traveling to the U.S. (the travel ban has since been temporarily lifted by a temporary restraining order from a federal judge). Read more

OPEC’s oil output fell by more than 1 million barrels per day (bpd) January, a Reuters survey recently found, pointing to a strong start by the exporter group in implementing its first supply cut deal in eight years.

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The Organization of the Petroleum Exporting Countries agreed to cut its output by about 1.2 million bpd from Jan. 1 to prop up oil prices and reduce a supply glut.

“Trump puts pressure on Lockheed Martin over cost of F-35” says the Financial Times.

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Well, we don’t have a problem with that. These defense contracts are notorious for overrunning budgets and, although to be fair to the contractors, the overruns are as often due to the buyer changing specifications as they are to the manufacturer mismanaging the project. At least that’s the case here in the U.K., and I don’t doubt it’s the same in the U.S.

Poor Lockheed Martin. The president-elect doesn’t love its F-35 Lightning II. I guess no one appreciates air superiority anymore. Even five generations in. Source: Adobe Stock/Spacekris.

But — and this is the big but — whoever is to blame, the fact is it is you and me, the taxpayer, that picks up the tab for these overruns and we aren’t talking a few dollars. It’s billions. Billions that could be spent on other defense equipment or roads, schools, research and development, etc. So, if the new president-to-be is intent on reducing this waste, then good for him. The issue is how you achieve that. Read more

Dr. Nicholas Garrett is a Director of RCS Global and an internationally recognized expert in the company’s six core work areas: supply chain due diligence and conflict minerals compliance, transparency, artisanal and small-scale mining, responsible supply chains, human rights and public policy and institutional reform. He has worked on more than 50 projects for over 10 years and regularly advises a range of clients, including AngloGold Ashanti, AVX, the EITI, Nokia, the Organization for Economic Cooperation and Development, Trafigura, the World Bank, and the World Gold Council, the British, German, Japanese and U.S. governments, the World Wide Fund for Nature (WWF) and World Vision. MetalMiner welcomes his perspective on conflict minerals compliance.

A lack of clarity on how and when key provisions of Dodd-Frank Wall Street Reform and Consumer Protection Act will be fully implemented is leaving downstream businesses in limbo — many of whom are looking to enhance their minerals sourcing compliance.

Conflict Minerals Flowchart

RCS Global’s simple IPSA flowchart. Source: RCS Global.

When passed, the implications of Dodd-Frank 1502 looked game-changing, significantly increasing the obligations on downstream companies using “conflict minerals,” but following an upheld appeal, the requirement to undertake an audit under Dodd-Frank 1502 is in stasis, leaving many companies either unsure as to how to validate their compliance obligations linked to the bill, or whether they should even attempt to validate at all.

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Nevertheless, at some point in the not too distant future, more than 6,000 Securities and Exchange Commission issuers producing products containing tantalum, tin, tungsten and gold — better known as the 3TG — will be forced to make significant efforts to improve transparency, monitoring and oversight of their supply chains, and ultimately determine the source of the materials in a vast range of everyday products. Read more

The Obama administration slammed the brakes on the Dakota Access pipeline on Sunday, refusing to issue a required easement from the Army Corps of Engineers while saying it will conduct a more stringent environmental review to consider alternate routes and consult further with the Standing Rock Sioux tribe, which has bitterly opposed the project.

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However, the 1,172-mile pipeline may not be dead in its current form. Nearly all of the pipeline has been completed except a few miles that are planned to flow underneath the Missouri River and the manmade Lake Oahe in North Dakota. The Army has said they will ask Energy Transfer Partners, the developer of the pipeline, to consider alternative routes and said that would be best accomplished through an environmental impact statement with full public input and analysis.

The Army Corps had actually approved the easement back in June but stepped in again after a federal judge dismissed a lawsuit by the Standing Rock Sioux whose reservation is near Lake Oahe. President-elect Donald Trump came out in support of completing the pipeline as planned last week and his administration could, potentially, undo these recent actions by the Obama administration.