2024-08-22 11:09

SANTIAGO, Aug 22 (Reuters) - Chile's Atacama salt flat is sinking at a rate of 1 to 2 centimeters (0.4 to 0.8 inches) per year due to lithium brine extraction, according to a study by the University of Chile. The study used satellite data collected between 2020 and 2023 to verify deformations in the Earth's crust. It was published in the IEEE Transactions on Geoscience and Remote Sensing journal. Francisco Delgado, a researcher at the Department of Geology at the University of Chile and lead author of the report, said the sinking area is in the southwest part of the salt flat where lithium miners operate. "It's not the entire salt flat," Delgado said, adding that the area coincides with parts where "companies are doing most of their pumping or the most intense pumping." In his report, Delgado said the pumping of lithium-rich brine occurs at a faster rate than the recharge of aquifers, leading to subsidence, or the downward vertical movement of the Earth's surface. "Subsidence due to irreversible changes in permeability can be a very serious problem," Delgado said, adding that the area measures approximately 8 kms (5 miles) north to south and 5 kms (3 miles) east to west. The data was obtained by the SAOCOM-1 satellite constellation of Argentina's National Commission for Space Studies, using Interferometric synthetic-aperture radar. Chile, the world's second-largest lithium producer, extracts the lightweight metal from the Atacama salt flat, which has one of the largest lithium reserves in the world. The metal, essential in electric vehicles, batteries and the energy transition, is obtained by evaporation where 90% of the water is lost to the atmosphere. Native communities that ring the Atacama worry that mining may be depleting scarce freshwater and lithium-rich brine, reducing its availability for people and wildlife. Environmental authorities have charged SQM and Albemarle, the two lithium producers in Chile, with possible irregularities when it comes to brine extraction. They aim to switch to Direct Lithium Extraction (DLE). DLE promises to be more sustainable by reinjecting groundwater after extracting lithium, but the technology is still in the testing phase. Chile's SQM recently partnered with state-owned copper giant Codelco as the country aims to expand its lithium production. Sign up here. https://www.reuters.com/sustainability/land-use-biodiversity/lithium-mining-is-slowly-sinking-chiles-atacama-salt-flat-study-shows-2024-08-22/

2024-08-22 11:04

DUBAI, Aug 22 (Reuters) - A vessel reported an explosion close to it that caused minor damage after an encounter with an uncrewed vessel 57 nautical miles south of Yemen's port of Aden, The United Kingdom Maritime Trade Operations (UKMTO) said on Thursday. The vessel and its crew were safe and it was proceeding to its next port of call. On Wednesday, the captain of the cargo ship sailing off the coast of Aden reported a total of five explosions in nearby waters, UKMTO said, later identifying the vessel as the SW North Wind I. Iran-aligned Houthi militants have launched attacks on international shipping near Yemen since November in solidarity with Palestinians in the war between Israel and Hamas. Sign up here. https://www.reuters.com/world/middle-east/ship-reports-damage-after-encounter-with-uncrewed-vessel-off-yemen-ukmto-says-2024-08-22/

2024-08-22 10:39

SAO PAULO, Aug 22 (Reuters) - Wind and solar energy producers in Brazil have warned they are reconsidering future investments there after the national grid operator repeatedly capped how much energy they could deliver in the past year, which squeezed their profits. Brazil has made big strides encouraging companies to invest in wind, solar and other renewable power generation sources, offering generous financing and subsidies. But all the electricity they generate has taxed the grid. More than a dozen executives and industry representatives said renewable energy investments were less viable under the National Electric System Operator's (ONS) current "curtailments" policy, which temporarily caps how much power ONS accepts from wind and solar plants. The pressure has been most acute in northeast Brazil, a hot spot for renewable energy investment. There are bottlenecks in transmission lines carrying electricity to Sao Paulo, Rio de Janeiro and elsewhere in the more populous southeast region. ONS has managed the grid more cautiously since August 2023, when a power outage in the northeast spread over most of the country. That has meant more curtailments when electricity generation exceeds consumption or there is a lack of transmission capacity. ONS has said curtailments were not excessive, and were necessary for safety. The operator said its data shows only 3% of electricity generated was lost to curtailments last month.Volt Robotics, a power sector consultancy, analyzed ONS numbers. The Brazilian Wind Energy Association, ABEEolica, estimated the sector had lost some 700 million reais ($128 million) in the past year. The Brazilian Solar Association, Absolar, estimated a loss of 50 million reais in the four months through July. "Renewable energy for the country is going to waste," said Eduardo Sattamini, chief executive officer of Engie Brasil Energia (EGIE3.SA) , opens new tab, which has been affected. The Serra do Mel II B complex in the northeast state of Rio Grande do Norte, owned by Equatorial Energia (EQTL3.SA) , opens new tab, was hit hardest among wind generators, they found. Between January and early August, 58% of power generated was rejected by the grid. Equatorial's renewables unit Echoenergia said in a statement the curtailments had hurt its operations and translated into higher risk pricing by investors, which could cut new investments. "This is not an environment for decision-making about new projects," the company said. Chinese generator SPIC's Banabuiu complex in coastal Ceara state was the worst hit among solar generators, Volt Robotics said, losing 50% of electricity generated between January and early August. Adriana Waltrick, chief executive of SPIC Brasil, said it was critical to resolve the grid challenges, which "could increase future energy costs and impact the competitiveness of the renewable energy sector in Brazil." Losses can be compounded because generators often must buy electricity at market rates to honor contracts with distributors and consumers. Voltalia (VLTSA.PA) , opens new tab, a renewable energy producer with nearly two thirds of its capacity in Brazil, expects curtailments to shave some 40 million euros ($44.48 million) from its earnings before interest, tax, depreciation and amortization this year. CPFL Energia, a power company controlled by China's State Grid, also highlighted the issue in second quarter results, flagging losses of 21 million reais. Some companies have sought compensation in court for the losses incurred by ONS failures. Those legal battles could take years. Offering some relief, the federal government has held auctions for private companies to build transmission lines, but many of those projects are years away from completion. Christiano Vieira, director of operations at ONS, said more electricity from the northeast will begin flowing into the national grid in September, when a new transmission line will start operating, which may help reduce curtailments. ($1 = 0.8993 euros) ($1 = 5.4760 reais) Sign up here. https://www.reuters.com/business/energy/brazils-grid-caps-power-wind-solar-threatening-renewable-projects-2024-08-22/

2024-08-22 10:27

LONDON, Aug 22 (Reuters) - The pound rose to a new 13-month high on the dollar on Thursday and also strengthened against the euro after British business activity data showed steady growth momentum going into the second half of 2024. The pound rose 0.3% to as high as $1.3129, its highest since July 2023. Should it be able to squeeze past the $1.3143 hit then, that would take the British currency to its highest since April 2022. The pound's recent gains against the dollar - it is up 2% in August - have been in part a function of a weakening in the U.S. currency as markets become more confident that the Federal Reserve will start cutting interest rates in September, and cut several times by year end. But the British leg of the pair also played a role on Thursday with the business activity data. The preliminary "flash" estimate of the UK S&P Global Composite Purchasing Managers' Index rose in August to 53.4 from 52.8, the highest reading since April and above the median forecast in a Reuters poll of a economists of 52.9. Readings above 50 denote growth and data company S&P Global said the figures were consistent with the economy expanding at a quarterly rate of 0.3%. "All in all, today’s August flash PMIs point to solid growth," said Sanjay Raja, chief UK economist at Deutsche Bank, adding that data did not show any major cracks in the British labour market. He did say, however, there were some signs of weakness in the service sector. The British data was also stronger than the equivalent numbers from the euro zone, helping the pound to strengthen on the euro. The common currency was last down 0.4% at 84.87 pence. The composite PMI for the currency bloc, which includes both services and manufacturing bounced to 51.2, but analysts linked this partly to a boost from the Paris Olympics. Sign up here. https://www.reuters.com/markets/currencies/pmi-data-sends-pound-higher-euro-new-13-month-top-dollar-2024-08-22/

2024-08-22 10:05

A look at the day ahead in U.S. and global markets by Dhara Ranasinghe. If the pressure on global markets from the tumult at the start of the month has abated, nobody told the dollar. The U.S. currency remains on the back foot -- trading near its lowest level in more than a year versus the euro and Britain's pound , . The dollar index, reflecting the currency's value against a basket of peers, is down 2.7% so far this month and is set for its biggest monthly drop since November. For sure, the end of dollar resilience has long been anticipated and long been proved wrong, given strength in the economy and interest rates staying higher for longer. Still, the latest developments suggest dollar pain will continue for now. First, Wednesday's minutes from the Federal Reserve's July meeting suggest the central bank appears to be set for a September interest rate cut. Second, data showed U.S. employers added far fewer jobs than originally reported in the year through March, adding to a sense that labour market conditions are weakening. And third, data on Thursday shows euro zone business activity displayed surprising strength in August despite firms raising prices, potentially weakening expectations for two more rate cuts from the European Central Bank this year. Interest-rate futures are back to pricing in just over 100 basis points of Fed easing by year-end, compared to roughly 65 bps in the euro area. Worth noting is that the ECB has already delivered a quarter point rate cut. Thursday's U.S. data calendar is light, with some focus on the release of the S&P Global flash August snapshot of business activity - the Purchasing Managers Index (PMI). July U.S. existing home sales numbers are also due out. U.S. stock futures were just a touch firmer, suggesting the positive momentum on Wall Street could continue. Oil prices are also in many people's sights after falling for a fifth straight day on concern about weakening demand in the global economy. U.S. West Texas Intermediate crude , trading around $71.64 in early London trade, is hovering near its lowest levels since February. Elsewhere, eyes are on plans for an unprecedented rail stoppage in Canada that could badly damage its economy and have a significant impact on cross-border trade with the United States. Canadian National Railway and Canadian Pacific Kansas City have shut down their rail networks in the country on Thursday and locked out nearly 10,000 workers after unsuccessful negotiations with a major labor union. The Canadian and U.S. economies are highly integrated, with rail transport accounting for 14% of total bilateral trade of roughly $382 billion between the countries for the first half of 2024, according to the U.S. Department of Transportation. Vice President Kamala Harris, the Democrat candidate for the Nov. 5 U.S. presidential election, will address the Democratic National Convention in Chicago on its final night. Key developments that should provide more direction to U.S. markets later on Thursday: * S&P Global Flash PMI August * U.S. July existing home sales * Auction of 30-year U.S. TIPS Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-pix-2024-08-22/

2024-08-22 08:02

PORTICELLO, Italy, Aug 22 (Reuters) - The body of British tech magnate Mike Lynch was retrieved on Thursday from the wreck of a yacht that sank earlier this week off Sicily during a tempest, a source close to the rescue operation said. Lynch's 18-year daughter Hannah is still missing, the source said. The bodies of the other four people who vanished when the boat went down were recovered from the yacht on Wednesday. Sign up here. https://www.reuters.com/world/europe/body-british-tech-entrepreneur-lynch-retrieved-yacht-source-2024-08-22/