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Oceans of Lithium
Salar de Uyuni in Southwest Bolivia contains an estimated 43 % of the world’s easily recoverable lithium. Together with neighbors Chile and Argentina, the three countries contain 70% of the planet’s reserves. As most people are aware by now, the renewables revolution is gathering momentum, and the world needs lithium, lots of it. The people who follow these trends estimate that Tesla’s Gigafactory alone, when it comes into production, will double world demand for lithium, whose prices have shot up just in the last two months of 2015 (from US$ 6500 to 13,000 a ton in November/December). American, Japanese, Chinese and South Korean companies are already mining around 170,000 tons of lithium worldwide. The Argentinian salares, or salt flats, comprise thousands of square miles in the provinces of Catamarca, Jujuy and Salta. The Salinas Grandes in the latter province is estimated to be the third largest in the world. But the grand-daddy of them all is the Salar de Uyuni in Bolivia that stretches over 10,000 sq.km. To paraphrase Exupéry, Salar de Uyuni is made up of salt, salt salt, and more salt, to a depth of one meter or more. In addition to common salt (sodium chloride), the salars contain other useful chlorides; potassium, magnesium and lithium chloride. The estimated 9 millions tons of lithium contained in this salar, conveniently concentrated by natural evaporation, should be enough to power a global energy revolution or two, but at what cost? Bolivia has suspended mining operations after the local residents opposed it, and Chile is granting no new concessions. These are understandable steps, in the light of what economists call ‘the resource curse.‘ In a nutshell, the resource curse or the resource paradox is that often countries with non-renewable natural resources (like minerals and oil) tend to have lower economic growth and less democracy than countries with fewer natural assets.
Understanding the resource curse does not help the international battery industry or alleviate the world’s need for non-polluting sources of energy, however. The increasing price of lithium is driving research into methods of obtaining it from the most abundant source on the planet, the oceans. Industrial ecologist Robert Ayres confidently predicted to me more than a decade ago that we would get all the lithium we need from the ocean. “There’s billions of tons there,” he said. True, there is an estimated 230 billion tons of lithium in seawater, but at a concentration of 0.14 to 0.25 parts per million, I did not believe it possible to extract it in meaningful quantities at reasonable cost. Changed my tune this week.
Many companies worldwide have been experimenting with various reverse osmosis technologies (the same technology that’s most often used to desalinate seawater) to produce brine concentrates dense enough to make lithium extraction economical. Now there are reports of several companies in a dozen countries that envisage producing lithium from brine concentrates at prices ranging from $1,500 to 5,000 per ton. Here’s an article about one of them.
For more by this author, see his Amazon page here.
Living in Limbo – Streetside Portrait
I see this older man on every visit to the local supermarket. He notices me, because Vari and I are among the few people who park our bikes at the small stand and carry home all our shopping in bicycle saddle bags. He sells a newspaper, called the Augustin. The Augustin is an inclusive newspaper run by volunteers who have formed an association, a ‘verein’ that promotes tolerance and provides opportunity for marginalised members of society to earn a little money with dignity, selling issues of the paper on the streets. Not many people buy them.
My Augustin man is always well groomed, clean shaven and decently dressed. He stands by the bank of shopping trolleys outside the supermarket. Sometimes, when he sees an elderly lady fumbling with change to release a shopping trolley from the stand, he steps forward with a metal gadget from his pocket the size of a beer opener that releases a trolley. Some people take the trolley from him with a sideways glance or nod of acknowledgement. Sometimes not even that. A few people stop to talk to him. I bought an Augustin from him one day, as a gesture of support.
Last week he used his gadget with a flourish when I was entering the supermarket and presented me with a trolley. I stood and spoke with him for some time. He’s from Georgia, he said, and 62 years old, a professor of philology. He’s waiting for his papers to be processed. I’m not sure how much I can ask about why he’s here. He’s so dignified and reserved. Does he have family? Did he lose his job? Is he a political refugee? He’s not allowed to work, he said, and lives with the support of Caritas while waiting for his papers. Caritas is the catholic relief agency that does a lot of good work among refugees in Austria and elsewhere.
When I come home, I check the definition of philology in Wikipedia. Philology is the study of language in written historical sources; it is a combination of literary criticism, history and linguistics, it says. I read a beautiful poem by John Milton when I was a child. Seeing the unemployed philologist reminded me of it. It’s called, When I Consider How my Light is Spent.
When I consider how my light is spent
Ere half my days in this dark world and wide,
And that one talent which is death to hide
Lodg’d with me useless, though my soul more bent
To serve therewith my Maker, and present
My true account, lest he returning chide;
“Doth God exact day-labour, light denied?”
I fondly ask. But Patience to prevent
That murmur, soon replies: “God doth not need
Either man’s work or his own gifts; who best
Bear his mild yoke, they serve him best. His state
Is kingly. Thousands at his bidding speed
And post o’er land and ocean without rest:
They also serve who only stand and wait.”
For more by this author, see his Amazon page here.
Turkey’s 2.5 million Syrian refugees
The following text is copied from the blog of economist Larry Willmore, and I think it merits re-posting because of widespread reports in the media in Europe about Turkey’s non-cooperative stance about taking back refugees who have made the hazardous crossing to Europe. Really? Read on below…
We are bombarded daily with news of problems with the massive influx of Syrian refugees in Europe, Jordan and Lebanon but seldom hear about the much larger number of Syrian refugees in Turkey. The reason there is so little reporting from Turkey is that Syrian refugees there encounter little hostility. Moreover, significant numbers are able to work informally, often in businesses run by Syrians. The Turkish government recently began to issue a restricted number of work permits to refugees. Refugee employment would no doubt increase, along with wages and working conditions, if the tight restrictions were relaxed.
[T]he 2.5 million Syrian refugees in Turkey have encountered less hostility than in Jordan and Lebanon—not surprising given Turkey’s population of 77 million …. Jordan and Lebanon face a significantly higher burden with over one million Syrian refugees in each country, representing an influx equal to, respectively, 20 and 25 percent of the native population.
It may also be that Turkey’s more open business environment has played a role in lowering tensions. ….
Over the last four years, about 4,000 formal tax-paying firms—employing thousands of workers, mostly Turkish—have emerged. And informal enterprises may multiply this number. …. [M]any of these [refugee] workers make less than minimum wage and have no social benefits. But in January 2016 Turkey’s official gazette announced the granting of work permits to refugees, though employment is capped at 10 percent of a firm’s workforce.
Omer M. Karasapan, “The impact of Syrian businesses in Turkey“, Future Development blog, Brookings, 16 March 2016.
For more by this author, see his Amazon page here.
Hinkley. Oh no!
The political decision to power ahead with Hinkley Point C nuclear power station is the energy equivalent of appointing a tone deaf musical director to the London Symphony Orchestra. How much more evidence do Cameron and Co. need? A short litany of anti-Hinckley arguments should suffice.
In a case of economics speaking truth to power, the OECD’s 2010 World Energy Outlook quietly increased the average lifetime of a nuclear power plant to 45-55 years, up 5 years from its 2008 edition.
Seeds of Inequity
What could be more principled than companies that work to genetically modify seeds, breeding out negative traits and selecting a mix of desirable qualities that make them resistant to pests, hardy enough to withstand droughts or floods as desired? After all, farmers have been doing this for hundreds of years, patiently crossing varieties and developing superior strains of the world’s crops. Enter the profit motive. Still no harm done, we thought! Selfish interest is the lever used by civilizations to lift their peoples to prosperity, with the profit motive as the fulcrum on which this lever rests.
The world has generally accepted the truth of this principle ever since Adam Smith pointed it out in his seminal work, first published in 1776. Except for a relatively brief interlude when some nations experimented with communism and socialism in a failed search for social justice and equity, the world has broadly accepted Smith’s premise that wealth creation is a good thing and ought to be encouraged by enlightened governments that simply move out of the way and allow entrepreneurs to do their stuff. By and large, this is what seems to have happened in the case of GMOs (genetically modified organisms). Basically, some large corporations have copyrighted and distributed their seeds (sounds fair enough; respect for intellectual property rights sets the basis for innovation and prosperity). The problem is, these corporations have also made the rules about what happens to the seed generations that follow. They have decreed, and governments have accepted, that farmers may not retain a proportion of seeds from their crop for planting the subsequent season, but have to buy the seeds from the corporations again.
As Lizzie Wade points out in her Science article “How Syrians saved an Ancient Seedbank from Civil War”
…Maize, for example, was created by ancient Mesoamericans by painstakingly breeding more and more appetizing teosinte, a stubby grass with tiny, tough kernels that has so little in common with modern maize that archaeologists dismissed it as a possible wild ancestor until genetic tests revealed the surprising truth. The problem in the short run is that conventional breeding can be s…l…o…w. Teosinte was domesticated in central Mexico between 6,000 and 10,000 years ago, but farmers only managed to create a variety that tasted good a mere millennium ago
As S. Grant points out in his article “10 Problems Genetically Modified Foods are Already Causing,” once they plant GM crops, farmers can no longer legally harvest their own seeds and are in danger of entering an era of perpetual bondage. Thus serfdom re-enters the world in the 21st century, this time clothed in the language of high-tech and carrying the false promise of freedom from hunger. Lawmakers are all too often ignorant and dazzled by technology, so they fail to realise the problems with GM crops are more to do with social and juridical issues rather than with the technology itself.
“In India, seeds are taken as a symbol of God’s blessing. They keep it, they store it, they know what is good seed and bad seed.” “Control oil and you control nations. Control food, and you control people.”
The above two memorable quotes are from a must-see 9-minute video about Natabar Sarangi, a village farmer who distributes free seeds to poor farmers out of the deep conviction that the thousands of varieties of seeds bred and developed over centuries should not be lost. In the process, he helps many of them to modest prosperity.
For more by this author, see his Amazon page here.
Golden Skirts vs Testosterone in the Financial World
Read a riveting analysis by Economist John Kay on why banks might perform better with women in charge. As an enticement to read further, here is a reproduction of the opening paragraph of his article that was originally published in the Financial Times of 18 March 2015.
The most powerful posts in the financial world are held by women. Janet Yellen chairs the US Federal Reserve, and Christine Lagarde is managing director of the International Monetary Fund. Mary Jo White heads the US Securities and Exchange Commission, and was preceded in that job by Elisse Walter and Mary Schapiro. America’s new Consumer Financial Protection Bureau is directed by a man — but the reason is that the industry feared Senator Elizabeth Warren would fill the role too effectively.
Read the complete article on John Kay’s own blog post here.
As often in the past, thanks to my friend Larry Willmore for his own Thought du Jour blog post that drew my attention to this article.





