Major International Business Headlines Brief::: 09 December 2020

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Major International Business Headlines Brief::: 09 December 2020

 


 

 


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ü  JD Health soars on stock market debut

ü  Bharat bandh: India farmers protest against law

ü  Japan announces new Covid-19 stimulus for economy

ü  Hydrogen power: Firms join forces in bid to lower costs

ü  Brexit: Pound recovers ground as Johnson sets talks in Brussels

ü  Brexit: Toyota says no-deal outcome will be 'very negative'

ü  Congress faces Christmas showdown with Trump over tech and defense bill

ü  Second U.S. judge blocks Commerce restrictions on TikTok

ü  Asian stocks under pressure as pandemic concerns outweigh stimulus hopes

ü  China's Wang vows to uphold trade deal during Biden administration - U.S.
business group

ü  Citi, Deutsche Bank, ANZ committed for trial in Australian criminal
cartel case

ü  FCC awards $9.2 billion to deploy broadband to 5.2 million U.S. homes,
businesses

ü  Nigeria's Power Grid Failed 206 Times in 10 Years - Report

ü  Rwanda Seeks to Turn Around Manufacturing Amid Covid-19

ü  Kenyan Banks' Profiles at Risk Over Increased Lending to Govt

ü  Africa Losing U.S.$25.7 Billion to Fraudsters Using Tax Havens

ü  South Africa: Minimum Wage Should Go Up 4.5 Percent, Says Commission

 

 


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'Price rises likely' due to UK shipping problems

Businesses say a global shipping crisis is causing freight costs to soar and
UK consumers may soon see price rises for imported goods.

 

On top of skyrocketing shipping rates, carriers are adding congestion
charges for imports to Felixstowe and Southampton, because of severe delays.

 

The logistics industry has written to the Department for Transport calling
for it to help clear port backlogs.

 

One freight director told the BBC the UK's ports are currently "broken".

 

Global shipping schedules were initially disrupted during the early stages
of the pandemic, but recently a surge in demand for imports and a backlog of
empty shipping containers are causing bottlenecks at UK ports.

 

Adam Russell, who imports home appliances such as heaters and air
conditioners for One Retail Group based in London, said the situation is
"scary".

 

"I've always been able to find a way to keep the business moving, but if I
can't find a way to move the goods into the country, then that's when the
business stops," he said.

 

"We used to pay $2,000 to ship a 40-ft container to the UK, now we're paying
at least $8,000 up to $10,000.

 

"Ultimately that means we're going to have to stop importing or we're going
to have to pass that on to the consumer."

 

He said it's "near impossible" to get goods out of China now because fewer
vessels than normal are sailing to the UK and there's also a shortage of
empty containers ready to be filled in Chinese ports.

 

Major shipping companies including Marseille-based CMA-CGM have told UK
importers no more bookings can be made for ships sailing from Asia until the
last week of December.

 

The Japanese carmaker Honda said delays at UK ports are holding up imports
of parts and production will temporarily cease at its Swindon plant from
Wednesday.

 

The Builders Merchants Federation has also complained of delays for building
supplies such as screws and timber, crucial for building new homes.

 

Flexibility call

Organisations representing the UK's ports, shipping and logistics sectors
have written to Transport Secretary Grant Shapps, urging the government to
do what it can to improve the situation.

 

"We recognise government's capacity to step in is limited, but where they
can, they should look at ways of increasing the capacity for moving
containers on and off ports," said Tim Morris, chief executive of ports'
trade association, the UK Major Ports Group.

 

"That could mean running more and longer trains to and from ports, allowing
hauliers more flexibility to collect containers out of normal hours, and for
drivers to take on longer shifts where that can be done safely," he said.

 

The letter to the Transport Secretary also warns the government about
further potential disruption when the Brexit transition period ends in
January.

 

The Department for Transport said partners across government are working
closely with the freight industry to resolve the challenges in the global
container system.

 

'Extremely stressful'

Logistics firms which are responsible for transporting goods from ports to
warehouses say the situation is creating huge amounts of stress.

 

"It's pretty dire if I'm honest," said Ryan Clark, director of the
Essex-based freight forwarder Westbound Logistics Services.

 

"At the moment, we're having an extremely stressful time, to say the least.
We've had one staff member leave because she can't take the customers'
complaints."

 

"But we are all in the same boat. We are trying to get people's goods and
products into the UK but the shipping rates are changing daily and we're
having to update customers and give them the bad news."

 

Mr Clark said that as shipping orders into the UK have surged, the unloading
time for vessels has increased.

 

That means there are fewer berthing slots available at ports and congestion
problems are getting worse.

 

Problems that have been plaguing Felixstowe for weeks have now spread to
Southampton and the system is "broken", he said.

 

"The increase in freight is either creating more expensive prices for the
consumer, or unsustainability for businesses that will be forced to close
where the onward price cannot be increased."

 

He also said poorly performing ports mean the UK risks becoming a "feeder"
island, rather than a direct port of call for shipping firms, leaving
importers with the added cost of transporting their cargo from continental
ports such as Rotterdam or Antwerp.

 

A spokesperson for DP World in the UK, which operates Southampton port,
said: "We have made clear that we are currently dealing with higher than
usual yard volumes and also bad weather, including fog, leading to our truck
turnaround times being longer.

 

"We expect levels to return to normal over the next week."

 

'We've got to put prices up'

But Ben Charlton, a business manager for paving importer Hanson Stone, based
in Mansfield, said logistics firms are telling him it will be two to three
months before the situation returns to normal.

 

He said he's been waiting since the start of the month for containers to be
unloaded at Felixstowe, but he's been told it could be another three weeks
till they arrive.

 

"We're a start-up company, we've only been running a year, we've had Covid
to contend with, and now we've got this," he said.

 

"We're paying about £1,200 more per container in increased shipping costs,
plus a £25 surcharge for port congestion."

 

That surcharge adds up, Mr Charlton said: "We do 150 containers so that's
about £3,750 plus VAT.

 

"Ultimately it's [all] going to get passed on to the end consumer and
landscaping companies who buy from us down the line."

 

Mr Charlton said the company operates on a credit system, where suppliers in
India are paid 30-60 days after the stock arrives in the UK but the delays
at Felixstowe are making cash flow a real problem.

 

"We're having to pay suppliers up front for stock that we haven't even
seen," he said. "We've got to put prices up, it's a last resort."

 

Eleanor Hadland, a ports analyst at the maritime consultancy Drewry, said
"the whole global container supply chain is basically out of balance".

 

The system stopped working properly when economies in various parts of the
world shut down and re-opened at different times, as they dealt with
Covid-19.

 

That led to shipping firms falling behind when it came to picking up empty
containers at ports and taking then back to Asia.

 

Now, with import demand surging again in Europe and North America, shipping
lines are choosing to allocate space on vessels to companies that are
exporting goods, since that's more profitable than picking up empty
containers.

 

And that causes more and more empties to clog up UK ports as well as a
container shortage - and more delays - in China.

 

She warned the end result could resemble the credit crunch of 2008 when
importers' lines of credit dried up.

 

"If the time it takes to receive goods at your shop is lengthening, you're
having to find the cash to pay your suppliers sooner," she said, and that
could have huge ramifications for global trade.

 

"What we're seeing is a trend away from globalised supply chains and people
looking to buy goods regionally," she said.--BBC

 

 

 

'Tax the wealthy to pay for coronavirus'

A one-off "wealth tax" would be the best way to patch up UK public finances
battered by the coronavirus crisis, tax experts have said.

 

Rather than increasing income tax or VAT, the government should instead look
at a tax on millionaire couples, the Wealth Tax Commission said.

 

Taxing those households an extra 1% above a £1m threshold could raise £260bn
over five years, it said.

 

The Treasury said it had already taken steps to ensure the wealthy pay their
fair share of tax.

 

Tax proposal

The coronavirus crisis has led to soaring public spending.

 

This year alone the government is spending £280bn on measures to fight
Covid-19 and to support the UK economy, including £73bn on job support
schemes.

 

The Wealth Tax Commission, a body made up of academics, policymakers and tax
practitioners, said that the government should consider a tax on the wealthy
if it decides to raise taxes to try to get back some of this outlay.

 

This would be more fair than raising tax on incomes, or goods people buy, or
by increasing national insurance contributions, the Wealth Tax Commission
said.

 

Report author Dr Arun Advani, an assistant professor at the University of
Warwick, said: "We're often told that the only way to raise serious tax
revenue is from income tax, national insurance contributions, or VAT.

 

"This simply isn't the case, so it is a political choice where to get the
money from, if and when there are tax rises."

 

There are indications that the coronavirus crisis has already increased
income inequality, with the Institute for Fiscal Studies reporting in June
that the bottom 10% of earners were the most likely to have jobs in sectors
that had shut down or could not be done from home.

 

A 1% per year tax rate could be imposed for five years on wealth of more
than £1m per two-person household, the Wealth Commission said.

 

That would be equivalent to raising VAT by 6p or the basic rate of income
tax by 9p for the same period.

 

One-off taxes have been used after major crises before, including in France,
Germany and Japan after the Second World War and in Ireland after the global
financial crisis, it said.

 

This week Argentina passed a tax on the wealthiest to pay for medical
supplies and relief measures amid the ongoing coronavirus pandemic.

 

A one-off tax on high net worth individuals wouldn't discourage economic
activity, and it would be very difficult to avoid by moving money offshore
or by emigrating, the commission said.

 

The suggested tax would include all assets such as main homes and pension
pots, as well as business and financial wealth, but not debts such as
mortgages. It would be paid by any UK resident, including "non-doms".

 

The commission also proposed an alternative where a threshold of £4m would
be set per household, assuming it contained two people with £2m each, taxed
at a rate of 1% per year on wealth above that threshold.

 

It said that a one-off wealth tax in this scenario would raise £80bn over
five years after admin costs.

 

'Morally repugnant'

Emma Chamberlain, a barrister at Pump Court Tax Chambers, said: "The trouble
is that our current way of taxing the wealthy is far too complicated leading
to avoidance and resentment. We need a better way forward."

 

Dr Andy Summers, associate professor at the London School of Economics said:
"A one-off wealth tax would work, raise significant revenue, and be fairer
and more efficient than the alternatives."

 

Rebecca Gowland from Oxfam said: "It is morally repugnant to allow the
poorest people to continue to pay the price for the crisis, when it is clear
that a fair tax on the richest could make such a difference."

 

'Petty theft'

However, Madsen Pirie, president of the Adam Smith Institute free market
think tank, said the tax proposal goes against "what most people see as a
fair principle: that buyers, sellers and facilitators of transactions take a
cut - including the state through tax."

 

He said the proposals amount to "attempting petty theft by instalments, only
the numbers they're proposing to rob from people's pockets are pretty
substantial."

 

"Your cash in the bank is not stacked in vaults gathering dust, it is
invested," he said. "If we tax those investments we end up with less
produced, less produced means lower wages and lost pensions, that means a
worse life for all of us.

 

"Money would move out of the country at a time we really need more of it
flooding in to help us rebuild after the pandemic ends. A wealth tax would
leave the country a poorer place and the fact it would be brought in over a
five year period reveals the true intention of it being a tax for all time,"
he added.

 

'Fair share'

The Treasury said that "getting people back to work, encouraging and
incentivising businesses to take on new employees and new apprenticeships,
ultimately creates the wealth that funds our public services."

 

A Treasury spokesperson said: "We're committed to a fair and efficient tax
system in which those with the most contribute the most.

 

"Our progressive tax system means the top 1% of income taxpayers are
projected to pay over 29% of all income tax, and the top 5% over 50% of all
income tax in 2019-20."

 

"We've also taken steps to ensure the wealthy pay their fair share,
reforming the taxation of dividends, pensions and business disposals to make
the tax system fairer and more sustainable," the spokesperson added.--BBC

 

 

 

 

Uber sells off flying taxi unit

Ride sharing business Uber has sold off its flying taxi unit Elevate to
California-based electric aircraft developer Joby Aviation.

 

Elevate is the second business Uber has sold off this week as the company
seeks a path to profitability.

 

On Monday, Uber announced the sale of its self-driving unit to autonomous
vehicle start-up Aurora.

 

Joby and Uber, however, described the latest transaction as an "expanded
partnership".

 

"This deal allows us to deepen our partnership with Joby, the clear leader
in this field, to accelerate the path to market for these technologies,"
Uber's chief executive Dara Khosrowshahi said in a statement.

 

Under the deal, Uber will also invest and additional $75m (£56m) in Joby
Aviation.

 

Elevate began in 2016 and, until earlier this year, its team had promised
the launch of flying taxi services in Los Angeles, Dallas and Melbourne in
2023.

 

Joby was a partner in Elevate before taking over the business, and the two
companies said they would each integrate the other company's services into
their own app.

 

"These tools and new team members will be invaluable to us as we accelerate
our plans for commercial launch," said Joby founder JoeBen Bevirt in a
statement.

 

media captionVolocopter's air taxi

Joby said its "zero emissions" aircraft will seat four passengers and will
feature vertical take-off and landing.

 

It will have a range of up to 241km and a top speed of 321kmh, the company
said.

 

The company is currently still testing the aircraft.

 

Cost cutting

The latest move comes as Uber tries to cut costs in an effort to become
profitable.

 

Although Uber had promised investors that it will achieve profitability by
the end of 2021, the company still reported a $625m loss last quarter.

 

Uber was initially hit hard by the Covid-19 pandemic, with rides - its main
source of income - plummeting by about 80% in April, before rebounding.

 

In order to reach profitability, the company has vowed to focus on its core
ride-hailing and food delivery platforms, while cutting costs.

 

In May, the company said it would slash thousands of jobs, while closing or
consolidating more than 40 offices.

 

In addition to selling off Elevate, Uber also sold off its driverless car
subsidiary to Aurora Technologies on Monday, while taking a 26% stake in the
driverless start-up.

 

Driverless technologies were once seen as a key priority for Uber, but the
program has faced numerous setbacks.

 

One of its cars was involved in a deadly crash in Arizona, though officials
blamed human error for the accident and declined to bring criminal charges
against the company.

 

The driverless car unit was also tangled up in legal fights over allegations
of technology theft.--BBC

 

 

Honda pauses production after UK port woes

Japanese carmaker Honda has warned that production at its Swindon plant will
be disrupted, after transport problems caused a shortage of parts.

 

The plant operates on a "just in time" production system, where parts arrive
at the factory when they are needed.

 

Honda has told employees that it is currently experiencing vessel delays and
congestion at UK ports.

 

It will pause production on Wednesday "due to transport-related parts
delay", the car giant said.

 

"The situation is currently being monitored with a view to restart
production as soon as possible," Honda said.

 

It is looking at other arrangements such as air freight.

 

Congestion at UK container ports has been building up in recent weeks,
causing problems initially at Felixstowe, but recently at Southampton and
London Gateway as well.

 

The backlog has built up as companies increased orders after the initial
pandemic lockdown, while some have looked to stockpile goods before the end
of the Brexit transition period.

 

Problems at the UK's container ports have been building up for weeks.
Businesses have been complaining about consignments being delayed, or even
ending up on the wrong side of the channel. Now a major manufacturer has
admitted production will be disrupted.

 

So what's gone wrong? Issues at Felixstowe, Britain's biggest container port
have been evident for some time - blamed by hauliers on a vehicle booking
system that they claimed simply didn't work, preventing them getting into
the port.

 

The Covid outbreak has also caused problems - which were exacerbated when
thousands of containers of PPE imported on behalf of the government were
simply left within the port for weeks, adding to the gridlock. And after the
lockdown in the first half of the year, the volume of goods being imported
has been much higher than normal.

 

Congestion at Felixstowe has pushed more container traffic to Southampton
and London Gateway - and now the situation in both of those ports is also
reportedly getting worse.

 

Honda is looking at air freight to ease its supply problems. The chances are
other businesses may have to do the same.

 

line

Congestion at England's ports is now so bad that some shipping firms have
limited the amount of cargo they will bring to the UK.

 

Consignments have reportedly been offloaded at continental ports such as
Antwerp, Rotterdam and Zeebrugge.

 

In a statement, Honda said: "Honda of the UK Manufacturing has confirmed to
employees that production will not run on Wednesday 9 December due to
transport-related parts delays."--BBC

 

 

 

US cybersecurity firm FireEye hit by 'state-sponsored' attack

US cybersecurity firm FireEye says it has recently been attacked by a
"highly sophisticated threat actor", believing the hacking was
state-sponsored.

 

In a blog, FireEye CEO Kevin Mandia said company tools used for testing
customers' security had been stolen.

 

"The attacker primarily sought information related to certain government
customers," he wrote.

 

The blog did not say who might have carried out the attack. The firm and the
FBI are investigating the hack.

 

FireEye share price plunged following the company's acknowledgement of the
hack.

 

What did FireEye say?

"Based on my 25 years in cyber security and responding to incidents, I've
concluded we are witnessing an attack by a nation with top-tier offensive
capabilities," Mr Mandia said in Tuesday's blog, adding that the hack was
"different from the tens of thousands of incidents we have responded to
throughout the years".

 

"The attackers tailored their world-class capabilities specifically to
target and attack FireEye.

 

"They used a novel combination of techniques not witnessed by us or our
partners in the past," the blog said.

 

California-based FireEye was set up in 2004. It specialises in investigating
attacks in cyberspace against companies throughout the world.

 

It is being described as one of the fastest-growing firms in the industry.

 

Mr Mandia began his career in the US Air Force investigating the first major
cyber attack on America's defence secrets by another state, the BBC's
security correspondent Gordon Corera reports.

 

In that case, our correspondent says, the Russians were responsible and,
even though Mr Mandia does not name names, Russia may well be the prime
suspect this time.

 

FireEye is a highly regarded outfit used by companies and governments around
the world to protect them from hacking.

 

So when the defenders themselves get hacked it sends a shiver down the
spines of cyber security experts.

 

It isn't the first time a major cyber security company has been hacked - but
what is concerning here is that FireEye's so-called "Red Team" hacking
weapons have been stolen.

 

Like many cyber security firms, FireEye has an offensive division that can
be hired by companies and governments to carry out mock cyber attacks to
help an organisation improve its defences.

 

FireEye says its hacking tool chest has been plundered meaning that the
thieves now have a potent collection of new techniques to draw upon.

 

This has also happened before in the infamous Shadow Broker leaks in which
hackers stole and shared cyber weapons developed by the US National Security
Agency. This resulted in successful and devastating attacks on businesses
and civilians all over the world.

 

The saving grace here, perhaps, is that FireEye knows exactly what hacking
tools they had and, hopefully how to defend against them.

 

The race is on to get the warnings out there before the hackers take
advantage.--BBC

 

 

 

China bans 105 apps including TripAdvisor

China has removed 105 apps from its app stores as part of a campaign to get
rid of content related to pornography, prostitution, gambling and violence.

 

Most of the banned apps are Chinese but US travel app TripAdvisor is also
included on the list.

 

According to the Cyberspace Administration of China, all apps violated one
of three cyber-laws, although it did not provide details.

 

It comes as a second US court rules against the planned ban on TikTok.

 

US district judge Carl Nichols said President Trump over-stepped his
authority when attempting to ban the Chinese video-sharing app on security
grounds. He is the second judge to rule in favour of TikTok.

 

The majority of apps in the latest crackdown from Beijing are domestic ones,
with authorities saying the ban was in response to content the public
"deemed offensive".

 

It is unclear why TripAdvisor has been banned. The BBC has contacted the
firm for a comment but has not yet received a response.

 

Tensions between the US and China have been increasingly played out in
cyber-space over recent months.

 

When the TikTok ban was announced by President Trump in the summer, the
Chinese authorities accused the US of bullying tactics and said it would
take "necessary measures" to safeguard the interests of Chinese companies.

 

The internet remains heavily regulated in the country with US firms Google,
Facebook and Twitter all blocked.--BBC

 

 

 

Competition and Markets Authority plans tailored rules for tech giants

The UK is set to issue Facebook, Google and the other tech giants sets of
rules customised to each firm, and penalise them if they fail to obey.

 

The tailored codes of conduct is part of a plan unveiled by the Competition
and Markets Authority, which it says would "proactively shape the behaviour"
of the companies.

 

The CMA intends to create a Digital Markets Unit within itself to draw up
the rules and govern compliance.

 

However, legislation is required.

 

The watchdog wants the new unit to be able to fine the tech companies up to
10% of their global turnover if they do not comply with the remedies to
anti-competitive behaviour it demands.

 

For Google that would amount to over $16bn (£12bn), and Facebook more than
$7bn, based on their most recent full year results.

 

The intention is for the new unit to become operational in April, but it
will only gain the powers it needs if MPs vote to grant them, and that may
not happen until 2022.

 

In the meantime, lobbyists from the tech firms are likely to try to limit
its reach.

 

And experts question how much influence the unit will have compared to the
European Commission and US regulators.

 

Tougher takeover rules

Until now, the European Commission was responsible for most large and
complex competition cases involving the UK.

 

But after 1 January, the CMA is set to take over these responsibilities on a
local level due to Brexit.

 

Last week, the organisation first set out how it planned to govern the
behaviour of tech platforms "that currently dominate" online markets, and
give consumers "more control over how their data used".

 

The latest announcement fleshes out some of the detail.

 

It says there would be three pillars to the new regime:

 

·         the new codes of conduct, which would detail how they do business
with other companies and how they should treat their users

·         interventions to aid competition, with one proposal being to
require the tech firms to make their services interoperable - for example
allowing a proprietary app to run on rival's operating system or hardware

·         enhanced merger rules, which would allow the authority to block
takeovers and other transactions until those involved could convince the
watchdog that consumers would not be harmed as a consequence

Although large fines are a possibility, the authority says it hopes most
cases would be settled on an informal basis.

 

This might involve, for example, Google approaching it to discuss a takeover
- such as its pending purchase of Fitbit - at an early stage, to ensure the
move would not further entrench its dominant positions in search and online
advertising.

 

"The UK needs new powers and a new approach," said the CMA's chief executive
Andrea Coscelli.

 

"In short, we need a modern regulatory regime that can enable innovation to
thrive, while taking swift action to prevent problems."

 

One industry-watcher welcomed the idea of trying to tackle problems
"up-front" rather than after market abuses have occurred.

 

But she said the measures should have been introduced years ago.

 

"It's great that Facebook, Google and Amazon are each going to be regulated
in their own ways because they are all different to each other," said Rachel
Coldicutt, an independent technology policy consultant.

 

"But it's equally ridiculous that we're now in a position that these
companies have been allowed to become so big that they need bespoke
regulations.

 

"And inevitably there's an issue about the amount of clout the UK is going
to have now that we're leaving Europe."

 

Big tech

The CMA has not provided a list of the tech giants that would be the focus
of the Digital Markets Unit's efforts.

 

But it has said they would be included if they were recognised as having
"strategic market status", by which it means they must have substantial and
widespread market power.

 

Other companies likely to be covered are Apple, Microsoft, Netflix and
Airbnb.

 

"It is important that the CMA continues its consultative approach, ensuring
decisions are fully informed by facts and a thorough understanding of
digital markets," said Antony Walker, chief executive of the techUK, which
represents hundreds of large and small tech firms.

 

The government will now consult on the plan before writing the necessary
change to the law.

 

The announcement comes a week before the European Commission unveils its own
regulatory plans for the world's largest tech companies.

 

It was originally expected to have revealed its proposals by now.

 

But the EU's regulator has now pencilled in 15 December as the day it will
publish details of its Digital Services Act and Digital Markets Act, which
it has said will address illegal content, unfair behaviour and the "choking
off" of business opportunities for smaller firms.--BBC

 

 

 

PayPal 'reward' email rapped for misleading

An email sent by payment giant PayPal which promised customers a reward of
£10 for using their account did not make it clear enough that not everyone
would receive it, the Advertising Standards Authority (ASA) has ruled.

 

It upheld a complaint from a recipient of the email, an offer limited to the
first 28,527 people to respond.

 

PayPal said that it had made this clear in the terms and conditions.

 

But the ASA said the ad must not appear in its current form again.

 

"We considered that consumers were likely to understand from the subject
line and headline claim that they would receive credit worth £10 from
PayPal, and the subsequent qualification was insufficient to counter that
impression, so we concluded that the ad was misleading and breached the
code," wrote the ASA in its ruling.

 

In its defence, PayPal said that the marketing email "was designed to inform
customers about the availability of the offer and included all significant
qualifications and conditions".

 

The email from PayPal, received on 29 September 2020, featured the greeting:
"Long time no see. Here's a £10 reward for you!"

 

The headline claim in the body of the email stated: "We're giving you £10 to
use online with PayPal" followed by a clickable"Save Offer" button.

 

The fact the offer was limited to the first 28,527 people to apply was only
stated in the small print below.

 

In recent months, the ASA has banned a series of online ads. In October it
ruled that using fluffy animals in an advert for gambling site Gala Spins
was irresponsible as it was likely to appeal to under-18s. Mobile game ads
that showed content very different from the actual product were also banned.

 

And it has repeatedly warned social media influencers that their posts must
make it clear if they are adverts.--BBC

 

 

 

Sir Jim Ratcliffe confirms new vehicle to be made in France

Billionaire Sir Jim Ratcliffe, a Leave campaigner in the run-up to the 2016
Brexit referendum, has confirmed a new 4x4 vehicle will be built in France.

 

It ends hopes his Grenadier off-roader, based on the original Land Rover,
would be made at a new plant in Wales.

 

Those plans were put on hold in July while Mr Ratcliffe's Ineos Automotive
negotiated buying Mercedes-Benz's Hambach site, in Moselle.

 

He said on Tuesday that Hambach offered a "unique opportunity".

 

Mr Ratcliffe, who built his fortune heading the chemicals company Ineos,
added that Hambach was "a modern automotive manufacturing facility with a
world-class workforce".

 

"Ineos Automotive set out a vision to build the world's best utilitarian
4x4, and at our new home in Hambach, we will do just that," he said.

 

'Crushing blow'

When plans to build the vehicle at Bridgend, south Wales, were first
announced, Mr Ratcliffe said it was "a significant expression of confidence
in British manufacturing".

 

It was hoped the factory would create up to 500 jobs, producing about 25,000
Grenadiers a year, once fully up and running.

 

Chris Elmore, Labour MP for the Ogmore constituency in Bridgend, tweeted
that Tuesday's decision was a "crushing blow" for the area.

 

"The highly-skilled and dedicated workforce in Ogmore, Bridgend and
surrounding areas would have risen to the challenge," he wrote.

 

"That Brexit is clearly a major factor at play is a bitter pill to swallow.
Ineos owner Sir Jim Ratcliffe was a vocal Brexiteer, loudly proclaiming the
benefits of leaving the EU. Today, we can see his claims are as hollow as
his promises."

 

'Excellent access'

Under the deal, Ineos will also build Daimler's Smart EQ electric car at the
Hambach site and supply parts for Mercedes Benz, as well as producing the
Grenadier, inspired by the Land Rover Defender.

 

In a statement, Ineos Automotive said: "The site's location on the
French-German border, only 200km from Stuttgart, gives excellent access to
supply chains, automotive talent and target markets."

 

Daimler, the German company that owns Mercedes, said Ineos would take
control of the factory in the coming weeks. No sale price was disclosed. The
new vehicle will start being built at Hambach late next year.

 

"This acquisition marks our biggest milestone yet in the development of the
Grenadier," Dirk Heilmann, chief executive of Ineos Automotive, said.

 

The decision is the second major blow for Bridgend, as the factory would
have stood beside the now-closed Ford engine plant. Ford shut the plant in
September after 40 years, with the loss of nearly 1,700 jobs.--BBC

 

 

 

Tesla: German court halts factory plan over snake and lizard habitats

image captionEnvironmentalists argue Tesla's Grünheide site will endanger
local snake and lizard species

Tesla has been ordered again to suspend preparations for a car factory in
Germany after a successful court injunction by environmentalists.

 

The electric carmaker has been clearing forest land near the capital,
Berlin, for its first European car and battery plant.

 

But opponents argued this will endanger the habitats of lizards and snakes.

 

A court in Frankfurt an der Oder ordered forest clearing to be halted,
pending further examinations.

 

A similar court order was made earlier this year about Tesla's plans for
what it calls the Gigafactory in Grünheide, in the eastern state of
Brandenburg.

 

The earlier ruling was in response to concerns about wildlife and the water
supply.

 

Tesla has not publicly commented on the latest ruling, resulting from an
ongoing legal dispute with the Nature and Biodiversity Conservation Union
(NABU) and Green League. A final decision on the case is still pending.

 

The environmentalist groups say Tesla's deforestation will destroy the
habitats of sand lizards and smooth snakes, both of which are protected
species. They have also expressed concern that the building work will
disturb these reptiles during their winter hibernation.

 

"Even Tesla cannot and must not place itself above the law," said Heinz
Herwig Mascher, chairman of the Green League in Brandenburg, in a statement.

 

To much fanfare, Tesla's boss Elon Musk announced plans for the factory last
November, and said he aimed to have it operational by 1 July 2021. The aim
is to produce 500,000 cars a year.

 

Mr Musk has also said the company is looking at building the world's largest
battery factory at Grünheide, alongside its car plant.

 

But the site has become a flashpoint between environmentalists, and
Germany's Christian Democrat and Free Democrat parties, who fear the issue
could damage the country's attractiveness to businesses.

 

The dispute has also highlighted the risks for the US carmaker, which has
not been officially granted permission to build the factory.

 

Tesla has been granted permission by Germany's environment ministry to begin
site preparations "at its own risk." This has involved clearing about 91
hectares (225 acres) of forest and the felling of thousands of trees.

 

But Tesla's permission to start construction hinges on approval by local
authorities, who have to consult environmental groups and the local
community. Building work was also set back after seven bombs dating from
World War Two were discovered on the site.

 

Tesla held a consultation process with local residents and groups in
October, and over 400 complaints and observations were lodged.

 

After concerns about the impact the factory could have on local water
resources, the firm agreed to cut its water consumption.

 

Tesla currently has two Gigafactories in the US and one in Shanghai, China.
Earlier this year, Tesla overtook Toyota as the world's most valuable
carmaker.--BBC

 

 

Stock market bull run continues, sterling faces Brexit test

TOKYO (Reuters) - Asian shares rose to a record high and U.S. stock futures
gained on Wednesday as investors tracked positive news on COVID-19 vaccines
and ongoing efforts to launch more fiscal stimulus.

 

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.65%. At
one point the index reached 647.78, an all-time peak.

 

MSCI’s gauge of stocks across the globe also hit a record high.

 

Australian shares gained 0.61%. Japan’s Nikkei rose 1.27% to approach a 29
1/2-year high. Sentiment got an added boost after Japanese data pointed to a
rebound in capital expenditure.

 

South Korean stocks also jumped by 1.6% to trade near a record high. Shares
in China bucked the trend and fell 0.68% on profit taking.

 

Euro Stoxx 50 futures rose 0.45%, German DAX futures were up 0.37%, and FTSE
futures in London added 0.48%.

 

U.S. S&P 500 e-mini stock futures rose 0.23% after shares on Wall Street
notched new record highs on Tuesday, boosted by positive vaccine news and
seeming progress on U.S. stimulus talks.

 

The British pound was little changed before make-or-break talks on a trade
deal between Britain and the European Union.

 

“While hopes are still alive that a fresh stimulus package for the United
States will be agreed on soon, it is looking less likely a Brexit deal will
be made with negotiators from both sides acknowledging a deal may not be
achieved,” analysts at ANZ Bank wrote in a research memo.

 

“The next 24 hours will be critical and is likely to cause market volatility
depending on what is or isn’t agreed.”

 

The Dow Jones Industrial Average rose 0.35% on Tuesday, the S&P 500 gained
0.28% and the Nasdaq Composite added 0.5%.

 

U.S. policymakers continued to negotiate over additional stimulus to help
offset the economic impact of the pandemic while pursuing a stopgap
government funding bill.

 

Leaders in both parties remain adamant a deal must be struck but are still
working through sticking points, including aid to state and local
governments and business liability protections.

 

The steady march of positive news on COVID-19 vaccines helped lift investor
spirits.

 

Britain on Tuesday became the first Western nation to begin a wide
vaccination campaign, and Johnson & Johnson reported it could obtain
late-stage trial results for a single-dose vaccine in January, earlier than
expected.

 

Meanwhile, Pfizer Inc cleared another hurdle when the U.S. health regulator
released documents flagging no new safety or efficacy concerns.

 

But the looming prospect of a “no deal” Brexit weighed on sentiment for
sterling, which last traded at $1.3379 and at 90.68 pence per euro.

 

British Prime Minister Boris Johnson will meet Ursula von der Leyen,
president of the EU’s executive European Commission, for dinner in Brussels
on Wednesday to try and close gaps their negotiators have struggled with for
months.

 

Against a basket of currencies the dollar sat at 90.802, which is just above
a two-and-a-half-year low it hit on Friday as optimism about vaccines lured
short sellers.

 

Highlighting the dollar’s weakness, the offshore Chinese yuan strengthened
past 6.5000 to reach the strongest level in more than two years. The onshore
yuan also traded near its highest in more than two years.

 

Benchmark U.S. 10-year Treasury yields edged up to 0.9394% on Wednesday.
Some dealers say expectations for more fiscal spending could push yields up
more in the future.

 

Brent crude futures fell 0.27% to $48.71 a barrel, while U.S. West Texas
Intermediate futures fell 0.24% to $45.49 following a rise in U.S. crude
inventories.

 

Spot gold fell from a two-week high to $1,858.26 per ounce as the start of
vaccine treatment reduced safe harbour demand for the precious metal.

 

 

 

No model for sale here, but India's small investors flock to Tesla stock

MUMBAI (Reuters) - Mom-and-pop Indian investors increasingly buying U.S.
stocks have been drawn to a company that has no presence in India so far:
electric car maker Tesla Inc.

 

Indians are placing bigger-than-ever bets on U.S. stocks this year as the
American stock market has recovered faster than markets in India and other
emerging nations following a crash sparked by the coronavirus pandemic.

 

While firms such as Apple, Amazon and Facebook - which have a significant
presence in India - are popular among Indian investors venturing into U.S.
stocks, data from brokerages shows Tesla has emerged as a new favourite.

 

Indian brokerage Vested Finance said its accounts held $2.5 million worth of
Tesla stock in November, up from just $76,000 at March-end. Another
brokerage firm, Stockal, said its clients’ Tesla holdings have quadrupled to
$10 million during the period.

 

Tesla shares surged around 450% during that time.

 

“Some investors have just created accounts to be able to invest in Tesla,”
Vested’s CEO Viram Shah said. “We would have never imagined that a company
which is not even present in India would be the most popular.”

 

The frenzy around the stock comes as Tesla CEO Elon Musk has signalled an
India launch is impending. Musk in October tweeted the electric car maker
will foray into India “next year for sure”, and had earlier tweeted about a
2020 launch.

 

Tesla’s plans of a possible launch come when India is becoming focused on
promoting the use of electric vehicles, even though Musk has previously
flagged concerns around high Indian import duties.

 

Gaurav Jhunjhunwala, 33, became a Musk fan after reading his biography and
has even paid $1,000 in booking fees to get Tesla’s Model 3 electric sedan
whenever it launches in India. While that wait has been long, he invested
$100,000 in Tesla shares in May, and buys 30 shares every other week.

 

“I just like the way the guy (Musk) thinks,” Jhunjhunwala said. “He is
trying to make the world a better place.”

 

 

 

SoftBank's shares jump 7% on buyout debate report

TOKYO (Reuters) -SoftBank Group Corp’s shares jumped as much as 7% on
Wednesday after Bloomberg News reported that the group was considering
buying back shares to boost CEO Masayoshi Son’s stake so he could squeeze
out remaining investors.

 

SoftBank’s shares are seen as chronically undervalued by company executives,
with debate around the benefits of a buyout intensifying as they plunged to
lows in March.

 

Record share buybacks and a string of asset sales have driven a 180% share
price gain to two-decade highs since then, giving the group a market
capitalization of around $140 billion and raising the hurdle for a buyout.

 

Management buyouts remain rare in Japan, where being listed is a mark of
status for companies, and any move to take SoftBank private faces
considerable internal opposition.

 

Son owns a quarter of SoftBank’s shares and would need to lift his
shareholding ratio to two thirds to squeeze out minority shareholders.

 

SoftBank’s revised scheme would aim to buy back shares when the price dips
rather than launching a formal buyout with the aim of limiting the premium
paid, Bloomberg reported citing unidentified sources.

 

The group spent $1.6 billion on buybacks in November, an increase from the
previous month but less than half its July outlay.

 

SoftBank was not immediately reachable for comment.

 

The group has raised $80 billion through asset sales causing speculation
about how Son, who is said to prefer buying over selling, will deploy the
cash pile.

 

“SoftBank has grown to what it is through an enthusiastic use of other
people’s money which would end with privatization,” said Kirk Boodry,
analyst at Redex Research, adding a buyout would limit Son’s freedom to
invest elsewhere.

 

 

 

Rio Tinto should pay restitution for sacred Aboriginal caves blast - inquiry

MELBOURNE (Reuters) -Mining giant Rio Tinto Ltd should negotiate a
restitution package with the Indigenous Australians affected by its
destruction of two ancient rock shelters to expand an iron ore mine, an
inquiry panel said on Wednesday.

 

The panel released an interim report in which it also recommended Rio Tinto
ensure a full reconstruction of the rock shelters in the Pilbara region of
Western Australia at its own expense, and laid out broader industry guidance
that included reviewing consent practices and a moratorium on mining in the
affected places.

 

The parliamentary inquiry into the legal destruction of the 46,000-year-old
Juukan Gorge rock shelter in May held 13 public hearings, and received more
than 140 submissions from miners, heritage specialists and Aboriginal and
civil society groups.

 

The committee now aims to finish its report in the second half of 2021, once
it has heard testimony from other states after COVID-19-related disruptions.

 

It has already sparked some industry change, with miners reviewing processes
and their relationships with traditional owners of the land on which they
operate.

 

But there is room for more, both on the part of Rio Tinto and the part of
its peers, the inquiry found.

 

While castigating Rio for its failures, the inquiry said the company could
yet “re-establish itself as a leader” if it followed best practice,
particularly around consent.

 

Rio is expected to announce its new chief executive any day, after
Jean-Sébastien Jacques and two other senior leaders agreed to step down in
August due to the procedural failings it found led to the disaster and the
way it was initially managed.

 

The inquiry did not spell out what, if any, financial compensation Rio Tinto
should pay to the traditional owners, the Puutu Kunti Kurrama and Pinikura
people. But the package should include keeping places where artefacts and
other material could be stored and displayed for their benefit.

 

Explainer: What is an Aboriginal sacred site in Australia?

Even if Rio did have to pay some compensation, in the context of its $123
billion valuation, the amount was not likely to be material, said Glyn
Lawcock of UBS.

 

Still, recommendations to overhaul legislation could result in delays to
industry mine expansion plans in the years ahead, Lawcock added.

 

West Australia’s outdated Aboriginal heritage laws that favour development
are under review and not expected to be considered by lawmakers until next
year.

 

Until they are reformed, in the absence of clear consent of traditional
owners, all miners should hold off new applications to damage Aboriginal
heritage sites, the inquiry said.

 

Australia should also set down laws to ensure no ‘gag’ clauses can be
stitched into agreements that restrict Indigenous people from objecting to
development on their land, it said.

 

“The ultimate cause of the destruction of the caves was that insufficient
value has been placed on the preservation of Indigenous culture and heritage
— a living culture with a timeless heritage,” the inquiry found. “That must
change.”

 

 

 

Tesco's Asia deal paves way for 5 billion pound return to shareholders

LONDON (Reuters) - Britain’s biggest retailer Tesco expects to complete the
$10.6 billion sale of its Asian businesses to CP Group on Dec. 18, paving
the way for a return of 5 billion pounds ($6.7 billion) to shareholders, it
said on Wednesday.

 

Tesco agreed to sell its businesses in Thailand and Malaysia to CP Group in
March.

 

It said that CP Group had now reviewed and was satisfied with the formal
notice of approval from the Office of Trade Competition Commission in
Thailand.

 

This, plus the approval received from the Ministry of Domestic Trade and
Consumer Affairs in Malaysia on Nov. 10, means there are no further
conditions outstanding and the disposal is expected to complete on or around
Dec. 18.

 

“This sale allows us to focus on our businesses across Europe and to
continue delivering for customers, make a significant contribution to our
pension deficit and return value to shareholders,” said Tesco CEO Ken
Murphy.

 

Tesco intends to return about 5 billion pounds of the net proceeds to
shareholders via a special dividend, together with a share consolidation,
and will also put 2.5 billion pounds into the Tesco PLC Pension Scheme
shortly following completion.

 

The special dividend is expected to be paid around Feb. 26 2021, conditional
on shareholder approval at a general meeting around Feb. 11.

 

Last week, Tesco said it would pay back to government 585 million pounds of
COVID-19 business rates relief, which prompted rivals to do the same.

 

Murphy said the decision to return the relief was “completely disconnected”
to its plans to pay a special dividend once the Asian business was sold.

 

Shares in Tesco were up 1.6% at 0808 GMT.

 

 

 

Twitter, Tumblr, Vimeo push back against EU rules on illegal online content

BRUSSELS (Reuters) - Twitter and three other U.S. tech companies have urged
the EU to take a flexible approach towards harmful and illegal online
content instead of blanket rules requiring takedown, saying this would
preserve an open internet.

 

U.S. internet media group IAC/InterActiveCorp-owned online video platform
Vimeo, nonprofit browser maker Mozilla and Automattic, owner of online
publishing tool WordPress.com, made the call a week before EU tech chief
Margrethe Vestager is due to present her draft rules.

 

Known as the Digital Services Act, the rules aim to get bigger companies to
take more responsibility for removing illegal and harmful content as soon as
they have been notified.

 

In a joint open letter published on Wednesday, Twitter and the other
companies said the solution should be broader than just removing content.
Blunt content removal obligations could have a negative impact on freedom of
expression, they said.

 

“...By limiting policy options to a solely stay up-come down binary, we
forgo promising alternatives that could better address the spread and impact
of problematic content while safeguarding rights and the potential for
smaller companies to compete,” they said.

 

The companies said a better tactic would be to limit the number of people
who encounter harmful content.

 

“This can be achieved by placing a technological emphasis on visibility over
prevalence, supporting measures towards algorithmic transparency and
control, setting limits to the discoverability of harmful content, further
exploring community moderation, and providing meaningful user choice,” they
said.

 

The companies said new EU rules should also take into account the rise of
decentralised hosting of content and data.

 

Following the announcement of the draft rules on Dec. 15, the European
Commission will have to thrash out a final legislative draft with EU
countries and European Parliament, in a process likely to take months and
even years.

 

 

 

Africa: Leaders Commit to Reduce Internet Cost By 50%

African leaders under the Smart Africa Alliance on Monday, December 7,
committed to bring down the cost of the internet in their countries under an
ambitious project that will be implemented starting next year.

 

The alliance has 30 member countries, representing over 750 million people
and over 40 private sector members committed to the advancement of Africa
through digital transformation.

 

Mauritania became the latest member of the alliance, bringing member
countries to 31.

 

The decision by the alliance to slash internet cost by half is one of a
series of decisions announced during their virtual board meeting, which was
chaired by President Paul Kagame.

Affordable internet remains out of reach in many parts of Africa, according
to several reports.

 

A 2018 report by Ecobank Research found that Africa has the most expensive
mobile data, "both in real and income-relative terms."

 

In Equatorial Guinea, Zimbabwe and Swaziland - the three most expensive
countries - a gigabyte of data costs more than $20.

 

Across the continent, the average price is estimated at $7.04 with a
majority of countries recording prices above UN Broadband Commission's
target of 2 per cent of monthly income.

 

The UN Broadband Commission for Sustainable Development defines the internet
as being affordable when 1.5 gigabyte of mobile data is priced at no more
than 2 per cent of average income.

 

In Rwanda, an internet user pays a 7.1 per cent share of the gross national
income - $780 or around Rwf744,000 - for a monthly allowance of 2 gigabyte,
according to the International Telecommunication Union (ITU).

Yet, millions of people across the continent rely on the internet to connect
with their family, loved ones, do business, access healthcare information
and other activities.

 

And with the Covid-19 pandemic, the need for affordable and reliable
internet access increased as work, school, trade and many other essential
services shifted online.

 

At the ninth board meeting of Smart Africa, heads of state and government,
as well as other representatives approved a strategy that would enable
countries to reverse the trend.

 

The strategy

 

The board approved the strategy to create a special purpose vehicle to
operationalize the 'bulk capacity purchase' project, which is aimed at
reducing the cost of internet in Africa.

"The cost of the internet in Africa is very expensive, so we really aim to
reduce the cost by 50 per cent," Didier Nkurikiyimfura, the Chief Technology
and Innovation Officer at Smart Africa Secretariat, told The New Times on
Tuesday.

 

The target, he added, is to make it affordable for citizens to access the
internet, currently considered a utility, and for businesses.

 

"This will, in turn, help people and countries to get better connectivity,
launch products and services online, and be able to achieve a
knowledge-based economy," he noted.

 

Nkurikiyimfura revealed that the implementation of the 'bulk capacity
purchase' project will kick-off next year, saying the development of a
framework of that implementation will be complete before the end of 2020.

 

"In the beginning, we shall start with seven to ten countries as the first
phase. We shall work with a consortium of companies such as internet
carriers and telecom operators," he said.

 

The strategy was approved in the presence of 10 Heads of State and
Government, 16 country representatives, Smart Africa partner organisations,
and members of the private sector.

 

Johnny Kayihura, the chief executive at Axiom Networks, an internet service
provider operating in Rwanda and DR Congo, admitted that few countries in
the region have managed to achieve that.

 

"I have to admit that Kenya, Tanzania, Uganda and SA [South Africa] have
managed to get reasonable prices," he said. "But am talking on wholesale and
fixed internet stand point, and not talking 3G/4G pricing."

 

The decision to slash internet tariffs is among the many major announcements
made during the board meeting.

 

The Board endorsed the Smart Africa Digital Academy (SADA) initiative, and
the establishment of national digital academies under the SADA framework.

 

Such academies will work with countries to provide practical and technical
technology skills and knowledge, according to the organisation.

 

Leaders on Monday also endorsed the Giga Africa Initiative, a UNICEF and ITU
led project aimed at supporting enabling policies for cheaper smart devices
in different countries.

 

Four blueprints developed in 2020 were also unveiled.

 

It includes the 'Digital Identity' blueprint for Africa championed by Benin,
and the African blueprint for the development of 'ICT Start-Ups and
Innovation Ecosystem' spearheaded by the Republic of Tunisia.

 

The other blueprints are 'Smart Broadband 2025' led by Senegal, and the
Smart Villages blueprint led by Niger.-New Times.

 

 

 

South Africa: Diamond Divers Warn of Damage to Seabed From West Coast Mining
Dams

Coffer dam mining operations in 2017. Image from the report Amendment of
Environmental Management Programmes for Mining Rights 554MRC, 10025MR,
512MRC and 513MRC - Volume 2: Mining Right 554MRC, November 2017 by SLR
Consulting in association with Placer Resource Management.

 

Diamond divers have warned of damage to the seabed and inshore reef systems
from "coffer dams" on the West Coast.

 

Coffer dams are temporary sea walls built by diamond mining companies.

 

The divers have submitted affidavits to The Green Scorpions, who are
investigating the dams.

The Green Scorpions' probe is nearly complete, according to the Department
of Environment, Forestry and Fisheries.

 

Sediment from coffer dams built by diamond mining companies on the West
Coast is smothering the seabed and damaging the inshore reef systems,
perhaps permanently, diamond divers have warned.

 

Alexander Bay veteran diver Kobus Kriel said the sea was so dark with
sediment "we can't even dive with lights".

 

Kriel has submitted an affidavit to the Green Scorpions, who are involved in
a criminal investigation into the construction and impact of the coffer dams
being used to mine diamonds near the mouth of the Orange River. The probe is
at an "advanced stage", according to the Department of Environment, Forestry
and Fisheries.

 

In addition to the criminal probe, a "pre-compliance notice" was issued on 2
November, following investigations by the department's Green Scorpions
environmental management inspectors, with the recipient being given an
opportunity to respond to various allegations about the illegality of the
coffer dams. The department did not name the recipient.

Diamond mining in this area is managed by the Alexkor Richtersveld Mining
Company Pooling and Sharing Joint Venture (PSJV), formed between
government-owned diamond mining entity Alexkor and the Richtersveld
community after its successful land claim.

 

The joint venture, in which Alexkor holds a 51% interest, employs more than
100 mostly small private contractors to mine diamonds in five huge blocks
extending roughly between the mouth of the Orange/Gariep River in the north
and close to the little mining town of Kleinzee in the south.

 

Compliance notices are issued in terms of the National Environmental
Management Act (NEMA), and are aimed at making offenders comply with
environmental legislation or with the conditions of their permits,
authorisations or other regulatory instruments.

Pre-compliance notices give offenders advance warning that inspectors intend
to issue a compliance notice, and allow them to make representations before
this is done.

 

The response by the "recipient" in the coffer dam investigation was due by
the end of last week, the department's chief director of communication Albi
Modise told GroundUp in response to questions. "A final decision on the way
forward will be made after the contents of this representation have been
considered," he said.

 

Referring to the criminal investigation, Modise said that once the docket
had been finalised, it would be submitted to the Director of Public
Prosecutions for a decision on whether to prosecute.

 

Coffer dams, used along Namaqualand's "diamond coast" since the 1950s, are
temporary sea walls constructed to hold back the ocean from the intertidal
beach area and shallow surf zones while miners access the diamond-bearing
gravels under the beach.

 

There have been complaints about their environmental and socio-economic
impact for years, including from diamond divers.

 

One of the most vociferous critics of the coffer dam construction is
Alexander Bay diamond diver Gavin Craythorne, who has submitted an affidavit
to the Green Scorpions.

 

In his affidavit, Craythorne describes himself as a veteran diamond diver
with more than 35 years experience covering operations, engineering, and
consulting. "I have lived in Alexander Bay as a permanent resident since
1999 and made significant technical economic and advocacy contributions to
the local diamond diving industry and the operations of Alexkor."

 

He states that coffer dam mining using seawalls constructed of rock, as
opposed to beach sand, started at Alexkor in about 2012. This was despite of
recommendations that only locally mined sand be allowed for the construction
of dam walls and explicitly prohibiting rock material.

 

Craythorne says not only are rocks now being used to build the sea walls,
but hundreds of tons of dust which is poisonous to plant life are also now
part of the mix.

 

"... this toxic quarry dust that is indiscriminately dumped with the
sea-wall rocks into the sea will predictably generate large plumes of
regional sea pollution resulting in an environmental footprint several
orders of magnitude greater than the coffer dams themselves ... The
resultant widespread smothering of the seabed and increased turbidity of the
water column have a highly detrimental impact on regional shallow water reef
systems and Namaqualand's unique, world-renowned local artisanal diamond
diving industry," he says.

 

In his affidavit, Kriel states that he has been diving for diamonds for the
past ten years in the area.

 

"During a year we could mine approximately thirty to forty days, where sea
conditions were fair and visibility good. This continued up to approximately
September 2017, when the construction of the coffer dams started. Since
then, when the sea conditions did allow us to mine in Block 60, there has
been no visibility," Kriel states in his affidavit. "We have also lost
countless years of mining areas as most areas are now buried under large
amount of rock and sediment left behind by dumping materials into the ocean.

 

"I believe the damage that has been done will never be able to be repaired
either by rehabilitation, by machines and much less by the action of the
waves."

 

Kriel told GroundUp that his business had been "brought to its knees"
because of sediment from coffer dams in the mining area where he operates.
The seawater, he said "is so dark we can't even dive with lights".

 

"It's affecting a lot of people's income... it's really bad," he said.

 

Alexkor and the Alexkor Richtersveld Mining Company Pooling and Sharing
Joint Venture did not respond to emailed questions from GroundUp.

 

GroundUp is being sued after we exposed dodgy Lottery deals involving
millions of rands. Please help fund our defence. You can support us via
Givengain, Snapscan, EFT, PayPal or PayFast.-GroundUp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

Seed co Int.

Dairibord

 


Starafrica

Medtech

Turnall

 


Seed co

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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