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Int'l Business Times
03-07-2025
- Business
- Int'l Business Times
Ten Years After Brazil Mine Disaster, Pollution Persists
A decade after a dam collapsed in Brazil, sending a deluge of toxic mud into villages and waterways, residents complain of an inadequate cleanup and compensation by international mining firms. The 2015 dam collapse which killed 19 people was one of Brazil's worst environmental disasters, with survivors saying the Doce River region north of Rio de Janeiro remains heavily polluted. "The entire ecosystem around the river was destroyed," Marcelo Krenak, a leader of the Krenak Indigenous people, told AFP on the sidelines of a hearing in London held this week. The hearing is part of a large-scale legal action brought by claimants seeking compensation from Australian mining giant BHP -- which, at the time of the disaster, had one of its global headquarters in the UK. "My people, the culture, has always been linked to the river," Krenak said, wearing a traditional headdress with striking blue feathers. "The medicinal plants that only existed in the river are contaminated, the soil is contaminated, so you cannot plant, you cannot use the river water for animals," he added. Following a mega-trial that concluded in March, the claimants now await a decision from the British High Court in the coming weeks regarding BHP's liability for the disaster. The Fundao tailings dam at an iron ore mine in Minas Gerais state was managed by Samarco, co-owned by BHP and Brazilian miner Vale. The High Court is already preparing the second phase of the case to determine potential damages and compensation, which could begin in October 2026 if BHP is found liable. The company told AFP that "the recovery of the Doce River, the water quality of which had already returned to pre-dam failure levels, remained a focus". Acknowledging the "terrible tragedy", BHP said it is "committed to supporting Samarco to do what's right by the Brazilian people, communities, organisations, and environments affected by the dam failure". BHP maintains that the compensation agreement it reached last year in Brazil -- worth around $31 billion -- provides a resolution. However, a majority of the 620,000 claimants, including 46 municipalities, argue that they are not sufficiently covered by the deal and are instead seeking around GBP35 billion ($49 billion) in damages. Krenak said the claimants will at a potential future hearing present "visual evidence, photos and videos of what was done, what caused it, and the damage it is causing to this day". The city of Mariana, one of the areas hardest hit by the disaster, is seeking 28 billion Brazilian real ($5 billion) in compensation. "Our hope is that here in London, the municipality will be heard because, in Brazil, we were not heard," Mayor of Mariana, Juliano Duarte, told AFP. Duarte said he believes the British legal system will hold BHP accountable, which could pressure the company to negotiate directly with the claimants. He said the municipality is "open" to negotiation but "will not accept crumbs like those that were offered in Brazil". The city of Mariana, one of the areas hardest hit by the disaster, which is seeking around $5 billion in compensation AFP The 2015 dam collapse killed 19 people and unleashed a deluge of thick toxic mud into villages, fields, rainforest, rivers and the ocean AFP
Int'l Business Times
21-05-2025
- Business
- Int'l Business Times
High-flying Young Electricians Wire UK Energy Switch
Perched 45 metres (148 feet) high, young apprentice electricians replace a connection atop a pylon. In the UK, National Grid recruitment is at full power as its electricity network adapts for renewables. As new production sites multiply, particularly for wind and solar power, the privately-run company that owns the high-voltage pylons and cables in England and Wales said it is implementing "the largest overhaul of the electricity grid in generations". "It's quite fun and exciting really," Becky Hodgson, an overhead lines trainee, enthused at the prospect of "connecting" the UK's future energy needs. At the National Grid training centre in Eakring, a village in central England, 25-year-old Hodgson unwinds rope from a winch at the foot of a large pylon. To the sound of an engine and pulleys, a suspended walkway rises towards her classmates. Hailing from near Newcastle in northeast England, a region famous for its coal mining heritage, Hodgson is delighted to be part of the nation's new energy chapter. "It's ticking all the boxes for me," said the apprentice whose grandfather mined coal, which up until recently was used to fire British power stations. "From a young age I've always been really into climbing, and adventurous pursuits," Hodgson, sporting a fluorescent orange vest and blue hard hat, told AFP. With the UK one of the most advanced countries in Europe in terms of renewable energy, National Grid plans to invest GBP35 billion ($47 billion) by 2031 to transform its electricity network. The installation of new pylons, often favoured over underground or submarine cables owing to their lower cost, is causing friction among local residents across the country. Faced with growing demand for electricity and the need to source energy where it is produced, "we need more wires", insisted Zac Richardson, chief engineer at National Grid. The company has seen the number of training days surge 75 percent over three years, driven largely by growth in staff. "Will we be able to train enough? It's a massive challenge," said Richardson. "There's advanced investment going in, not just here, but with our key contractors as well, to ensure that the workforce is ready." National Grid estimates that 55,000 new hires will be needed in the coming years, across various trades, both within its own ranks and among its partners and subcontractors. A siren suddenly sounds in a substation, close to large machines bristling with lightning arresters. Then an explosion -- signalling a test of a pyrotechnic circuit breaker, a device that can quickly cut a high-voltage circuit. "You have to cover your ears automatically... when you work in a substation," laughed Lara Eken, a graduate substation engineer. The 23-year-old said she has come to learn about the workings of "a really in-depth technical system", whose number is multiplying with the expansion of the network. Cables extending from the large pylon are lost in the distance -- but they lead nowhere. For safety reasons, the training facilities are disconnected from the network. A power line apprenticeship lasts three years. "Everything crunches around the safety aspect first, so it's baby steps," training instructor Tom Norris, easily identifiable by his red helmet, told AFP. "You get them just climbing the tower first" before tackling more complicated tasks like hoisting equipment, he added. Norris said finding recruits is not a problem. "We're taking on more apprentices than we ever have. We've always got lots of interest on the recruitment day so we're picking from lots and lots of good candidates." With the UK one of the most advanced countries in Europe in terms of renewable energy, National Grid plans to invest £35 billion ($47 billion) by 2031 to transform its electricity network AFP National Grid estimates that 55,000 new hires will be needed in the coming years AFP
Yahoo
12-03-2025
- Business
- Yahoo
Spirax Group PLC (SPXSY) (Q4 2024) Earnings Call Highlights: Strong Organic Growth Amidst ...
Group Organic Sales Growth: 4% for the full year, ahead of global IP of 1.7%. ETS Organic Sales Growth: 10% with a margin improvement to 16%. STS Organic Sales Growth: 1%, with 4% growth outside China. Watson-Marlow Organic Sales Growth: 3%, with strong growth in Process Industries. Group Margin: 20.1% despite currency headwinds. Cash Conversion: 87%, supported by working capital improvement and lower capital expenditure. Adjusted EPS: 286.3p per share, 8% lower year on year. Full-Year Dividend Increase: 3%. Net Debt: GBP596 million, equating to 1.6 times EBITDA. Capital Expenditure: GBP84 million, 5% of group sales. Operating Profit Growth: 4% on an organic basis. Operating Margin: 20.1%, 10 bps higher organically. Currency Impact: Negative 5% on sales and 8% on operating profit. Warning! GuruFocus has detected 6 Warning Signs with SPXSY. Release Date: March 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Spirax Group PLC (SPXSY) achieved a full-year organic sales growth of 4%, outperforming the global industrial production (IP) growth of 1.7%. The ETS business showed strong performance with a 10% organic sales growth and a margin improvement to 16%, supported by a significant pipeline of customer inquiries for decarbonization-related electrification solutions. The company maintained a group margin of 20.1% through pricing discipline and efficiency savings, despite currency headwinds. Spirax Group PLC (SPXSY) increased its investment in future growth and achieved a higher cash conversion rate of 87%, supported by working capital improvement and lower capital expenditure. The company initiated a restructuring program aimed at simplifying the organization, which is expected to realize annualized savings of approximately GBP35 million, with 40% of this achieved in 2025. The STS business faced significant challenges in China, with organic sales growth of only 1% and a 13% decline in sales in China. Biopharm orders experienced a slower and more gradual recovery than expected, with sales growth below orders growth due to a low base. Currency movements negatively impacted sales by 5% and operating profit by 8%, affecting overall financial performance. The company anticipates continued challenges in China and Korea, impacting trading conditions and offsetting growth in other markets. The implementation of a new ERP system is expected to be a significant investment, potentially reaching a three-digit million cost, and may cause margin headwinds during the rollout. Q: Can you provide insights into the Biopharm order recovery and its impact on Watson-Marlow's margins? A: Nimesh Patel, CEO: The Biopharm recovery is evident across new order intake, particularly in long lead-time items like Flexicon systems and pumps, indicating higher activity and capacity expansion. This recovery is gradual, with end-user demand picking up, but large OEM demand remains volatile. The recovery will positively impact Watson-Marlow's margins as it progresses. Q: How long will the new capacity expenditure drag on margins, and when will it reach acceptable utilization levels? A: Louisa Burdett, CFO: The new plant should be operational by July, with strong order demand. The margin impact will likely persist through 2026, as throughput and productivity improvements are key to achieving a 20% margin for ETS by 2027. Q: Can you discuss the performance and strategy for the US steam market? A: Nimesh Patel, CEO: In the US, we are driving demand directly with customers through strategic distribution partners. This approach combines direct sales and distributor partnerships, focusing on solution selling and customer engagement. This strategy has led to strong growth in the Americas, particularly in the US. Q: What is the outlook for STS in China, and how will MRO growth offset declines? A: Nimesh Patel, CEO: The decline in China is primarily in the expand and refurbish segment, which is 60% of demand. MRO sales grew double digits last year and are expected to continue, helping balance the decline. We anticipate stabilization and eventual growth in expand and refurbish, with a more optimistic outlook for 2026. Q: How is the ERP implementation progressing, and what are the expected costs? A: Louisa Burdett, CFO: The ERP implementation is ongoing, with a focus on a global common design to maximize returns. The cost is expected to be in the three-digit million range, spread over time to minimize risk and capital expenditure. The implementation at Thermocoax in France was successful, with minimal disruption. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
