Biden looks abroad for electric vehicle metals, in blow to U.S. miners

By Ernest Scheyder and Trevor Hunnicutt

(Reuters) – U.S. President Joe Biden will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on processing them domestically into battery parts, part of a strategy designed to placate environmentalists, two administration officials with direct knowledge told Reuters.

The plans will be a blow to U.S. miners who had hoped Biden would rely primarily on domestically sourced metals, as his campaign had signaled last autumn, to help fulfill his ambitions for a less carbon-intensive economy.

Rather than focus on permitting more U.S. mines, Biden’s team is more focused on creating jobs that process minerals domestically into electric vehicle (EV) battery parts, according to the people.

Such a plan would help cut U.S. reliance on industry leader China for EV materials while also enticing unions with manufacturing work and, in theory, reduce pandemic-fueled unemployment.

The U.S. Commerce Department is organizing a June conference to attract more EV manufacturing to the country. Biden’s proposed $1.7 trillion infrastructure plan earmarks $174 billion to boost the domestic EV market with tax credits and grants for battery manufacturers, among other incentives. The department declined to comment.

“It’s not that hard to dig a hole. What’s hard is getting that stuff out and getting it to processing facilities. That’s what the U.S. government is focused on,” said one of the sources.

The approach would see the United States rely on Canada, Australia, and Brazil – among others – to produce most of the critical raw materials needed, while it competes for higher-value jobs turning those minerals into computer chips and batteries, according to the two sources.

Securing the full supply chain from metals to batteries does not require the United States to be the primary producer of the raw materials, said one of the sources.

A full strategy will be finalized after a year-long supply chain review involving national security and economic development officials.

Biden officials want to ensure the administration’s EV aspirations are not imperiled as domestic mines face roadblocks, the sources said, both from environmentalists and even some Democrats.

“It rings hollow when I hear everyone use this as a national defense argument, that we have to build new mines to have a greener economy,” said U.S. Representative Betty McCollum, a Democrat who has introduced legislation that would permanently block Antofagasta Plc’s proposed Twin Metals copper mine in Minnesota.

Ali Zaidi, deputy White House national climate advisor, said the administration was focused on a strategy that “leverages our domestic resources in a way that’s responsible”, noting that included recycling in the supply chain.

While U.S. projects from small and large miners alike will feel the impact, the pain from any blocked projects will fall disproportionately on smaller, U.S.-focused companies. Many large miners also have global projects that could benefit from the administration’s plan.

“We can no longer push the production of the products we want to places we cannot see and to people we will never meet,” said Mckinsey Lyon of Perpetua Resources Corp, which is trying to develop Idaho’s Stibnite mine to produce gold and antimony used to make EV battery alloys.

INVESTMENTS

The U.S. government in April became the largest shareholder in mining investment firm TechMet, which controls a Brazilian nickel project, a Rwandan tungsten mine and is a major investor in a Canadian battery recycler.

Washington also funds research into Canadian cobalt projects and rare earths projects in Malawi, among other international investments.

The State Department’s Energy Resource Governance Initiative (ERGI) is one of the main programs Washington plans to use to help allies discover and develop lithium, cobalt and other EV metals. To be sure, Washington is not ignoring domestic mining.

The U.S. Department of Energy has awarded grants to help old coal mines find ways to produce rare earths. U.S. officials have also funded MP Materials Corp, which owns the country’s only rare earths mine, though it relies on Chinese processors.

But the bulk of Biden’s approach is designed to sidestep battles with environmentalists and save capital for other fights, according to one administration source. During a visit to a Ford Motor Co plant in Michigan on May 18, Biden called for government grants for new EV battery facilities. He mentioned Australia’s lithium reserves during the tour, but not large U.S. supplies of the key battery mineral.

Republicans say Biden’s EV plans will be impossible to achieve without more U.S. mines.

“These ‘not-in-my-backyard’ extremists have made clear they want to lock up our land and prevent the mining of minerals,” U.S. Representative Lauren Boebert, a Colorado Republican, told a House Natural Resources Committee forum held the same day as Biden’s Michigan visit.

PLACATING LABOR

Biden’s approach comes with risks, including angering political supporters within the labor movement who want the administration to have an openness to resource extraction and the attendant jobs.

“Let’s let Americans extract these minerals from the earth,” said Aaron Butler of United Association Local 469 union, which does work for Rio Tinto Ltd’s proposed Resolution copper mine project in Arizona and endorsed Biden in the elections. “These are good-paying jobs.” Many of the skills that labor unions would use to build mines, including concrete and electrical work, can also be used to build EV metal processing plants.

The National Mining Association, an industry trade group, has been lobbying the White House and Congress to support domestic projects, arguing that the coronavirus pandemic showed the importance of localizing supply chains.

Biden’s White House is now quietly working to enlist labor support as it tries to build a case that its green policies are creating jobs, ahead of the 2022 midterm elections that could determine whether the strategy wins congressional backing, according to two organized labor sources familiar with the campaign Biden officials have reached out to unions across the country asking for specific job-boosting projects the administration can take credit for, the labor sources said.

(Reporting by Ernest Scheyder in Houston and Trevor Hunnicutt in Washington; Editing by Amran Abocar and Marguerita Choy)

Brazilian drugmaker completes first batch of Russian COVID-19 vaccine

By Leonardo Benassatto

GUARULHOS, Brazil (Reuters) -Brazilian pharmaceutical company União Quimica completed production of its first batch of the Sputnik V coronavirus vaccine with active ingredients and technology supplied by Russia, the company said on Thursday.

The vaccine will be exported to neighboring countries in South America, since Brazil has not yet approved the Russian shot for domestic use.

Moscow’s Gamaleya Institute, which developed the vaccine, said it had seen to quality control of the vaccine ingredients, which were put into vials and packaged for shipping – a process known as fill and finish – at the União Quimica plant in Guarulhos, just outside the city of São Paulo.

The factory’s first batch of 100,000 doses were packed into boxes labeled in Spanish, although the countries receiving them have not been decided yet by the Russian Direct Investment Fund (RDIF), executives said.

Fernando Marques, chief executive of the family-owned firm, said Paraguay, Uruguay and Argentina are interested in buying the vaccine. União Quimica will have a capacity for 8 million doses a month, when Brazil’s health regulator Anvisa approves its use in Brazil, he told Reuters.

Anvisa approval has been delayed after the agency took issue with some documents and missing trial data that the RDIF, which is marketing the shot, has been asked to provide.

Marques hopes approval will be given by June and his company will start producing the active ingredient at its biomedical lab in Brasilia instead of importing it from Russia.

RDIF said it has signed production contracts for Sputnik V with 20 manufacturing sites in India, Argentina, South Korea, China, Italy, Serbia, Egypt, Turkey, Belarus and Kazakhstan.

So far, the vaccine has already been produced in Russia, Serbia, Turkey, Egypt and Argentina, where the first test batch was produced on April 20 by Laboratorios Richmond, RDIF said.

(Reporting by Leonardo Benassatto and Anthony Boadle; Editing by Bill Berkrot)

Brazil’s easing of COVID-19 controls will cause new surge, experts warn

By Pedro Fonseca

RIO DE JANEIRO (Reuters) – The corner bars are jammed once again with rambunctious crowds in Brazil’s largest cities, but health experts warn that the easing of COVID-19 restrictions is premature and will deepen the world’s second deadliest pandemic.

“People think the pandemic is over … but we are racing towards the edge of a precipice,” said epidemiologist Wanderson Oliveira, the country’s former health surveillance secretary.

With no national policy coordination by far-right President Jair Bolsonaro’s government, and under pressure to get their economies running again, Brazilian governors and mayors have eased restrictions on non-essential activities.

In Rio de Janeiro, authorities have even allowed live music performances to resume in bars.

“In two or three months we will have an increase in deaths as a result of these measures. Hospitals are filling up and most patients die, unfortunately,” said Jesem Orellana, an epidemiologist at the Fiocruz biomedical center.

Brazil has lagged other nations in vaccinating its people, and the government of Bolsonaro, who has opposed lockdowns and played down the gravity of the virus, is under investigation in Congress for failing to secure timely vaccine supplies.

After reaching a peak of 4,249 COVID-19 deaths in a single day on April 8, Brazil has seen a stabilization at a still high plateau of about 2,000 fatalities a day, just below India.

Health experts are warning that Brazil has not learned from its mistake in easing restrictions last year that lead to this year’s lethal surge.

COVID-19 has killed 430,000 people in Brazil, second only to the United States, and the South American nation has the third highest number of overall confirmed cases of coronavirus after the United States and India.

According to Google’s mobility report based on the location of cell phones, the presence of people in workplaces last week reached its highest level since the beginning of monitoring.

The approaching southern hemisphere winter, when respiratory diseases multiply, is expected to make matters worse.

“It’s the worst possible time to become more flexible with social distancing restrictions in Brazil, especially in the south of the country,” said Orellana, from Fiocruz.

“The problem is not so much the return to normal activities, but the speed and irresponsibility of this return,” he added.

Fiocruz warned this week that social interaction, especially indoors with large numbers of people and little fresh air, must be avoided or else a new explosion of cases could be “catastrophic” in Brazil.

Orellana said only mass inoculation can avert such a scenario, but Brazil’s pace of vaccination is far too slow.

Only 16.3% of the population, or 34.4 million people, have received their first dose, and just 7.8%, or 16.4 million people, are fully vaccinated, according to the health ministry.

Due to supply constraints, daily vaccine doses administered have slumped to roughly half of their peak of over a million shots a day in mid April, according to “Our World in Data.”

(Reporting by Anthony Boadle; Editing by Bill Berkrot)

Brazilian firm to produce Russian vaccine without regulatory approval

BRASILIA (Reuters) – The Brazilian pharmaceutical company that plans to produce Russia’s Sputnik V coronavirus vaccine will start making it next week even before health regulator Anvisa gives approval for use in Brazil, the company’s chief executive said on Friday.

União Quimica’s facility in São Paulo has been certified by Anvisa for good production practices and the vaccine will be made for export to countries that have approved it, said CEO and founder Fernando Marques.

“We intend to start production next week with a view to export,” Marques said. He said Sputnik V will not be used in Brazil until it is approved, but neighboring Latin American countries have approved the vaccine and want deliveries.

Anvisa last week held off approving imports of Sputnik V sought by Brazilian state governors amid a second wave of the virus that has killed more than 415,000 Brazilians.

In a setback for the Russian vaccine, the regulator’s technical staff warned of “flaws” in the development and clinical testing of Sputnik, said the data presented on the vaccine’s safety and efficacy was incomplete.

Marques on Friday told a Senate commission on COVID-19 that União Quimica expects to receive a batch of active ingredient from Moscow next week to start making the vaccine for export at its plant near São Paulo’s Guarulhos airport.

“So, the situation today is this: we will start production, obviously when we receive the active ingredient, and we will wait for the registration to make the local production available for use in Brazil,” he told senators.

The Russian Direct Investment Fund that is marketing Sputnik V developed by Russia’s Gamaleya Research Institute has plans to supply the vaccine to Latin American countries from Brazil.

(Reporting by Anthony Boadle; editing by Grant McCool)

PAHO warns younger people filling up intensive care COVID-19 wards

BRASILIA (Reuters) – COVID-19 infections continue to spread fast across the Americas as a result of relaxed prevention measures and intensive care units are filling up with younger people, the director of the Pan American Health Organization (PAHO) Carissa Etienne said on Wednesday.

In Brazil, mortality rates have doubled among those younger than 39, quadrupled among those in their 40s and tripled for those in their 50s since December, she said.

Hospitalization rates among those under 39 years have increased by more than 70% in Chile and in some areas of the United States more people in their 20’s are now being hospitalized for COVID-19 than people in their 70’s.

(Reporting by Anthony Boadle)

Poland tightens quarantine rules after cases of Indian COVID-19 variant

WARSAW (Reuters) – People travelling to Poland from Brazil, India and South Africa will have to quarantine, the Polish health minister said on Tuesday, as he announced cases of a COVID-19 variant first detected in India in the Warsaw and Katowice areas.

The outbreaks poses a fresh risk to Poland just as it starts to emerge from a highly damaging third wave of the pandemic.

“In the case of Brazil, India and South Africa, people travelling from these locations will automatically have to quarantine without the possibility of getting an exception due to a test,” Health Minister Adam Niedzielski told a news conference.

The number of infections involving the Indian variant in Poland has now reached 16, including two cases in the family of a Polish diplomat who had returned from India, Niedzielski said.

Poland has so far reported 2,808,052 cases of COVID-19 and 68,133 deaths.

Poland reopened shopping centers on Tuesday, the beginning of a gradual unfreezing of the economy that will see restaurants, hotels and schools reopening at different points in May.

(Reporting by Alan Charlish and Pawel Florkiewicz; Editing by Gareth Jones)

U.S. to ease COVID-19 travel restrictions for Chinese students

By David Shepardson

WASHINGTON (Reuters) – The Biden administration will ease travel restrictions allowing Chinese students to come to the United States for classes this fall and from other countries where most non-U.S. citizens are barred because of the coronavirus pandemic, government officials told Reuters.

The U.S. State Department is set to announce later on Tuesday it is expanding its national interest exemptions to cover students and academics around the world starting on Aug. 1 after it made the change in March for European students, officials said.

The United States has barred most non-U.S. citizens from the United States who have been in China, Brazil, South Africa, Iran and most of Europe within the prior two weeks. Now students from all those countries will be eligible to enter the United States in a few months’ time.

The largest number of international students in the United States are from China. About 35% of international students in the United States in the 2019-20 school year were from China, according to the International Education Exchange (IEE), nearly twice as high as the second highest, India.

In the 2019-20 academic year 372,000 Chinese nationals attended universities and colleges in the United States, the IEE said in a November 2020 report.

In January 2020 then President Donald Trump first imposed the restrictions barring nearly all non-U.S. citizens who were in China from entering the United States.

U.S. colleges and universities have been urging the State Department to take the step before international students had to make enrollment decisions.

The American Council on Education had pressed the administration of President Joe Biden to act quickly, saying in a letter last month the administration could “deliver a welcoming message to current and prospective international students, which can help restore the U.S. as a destination of choice, as well as supporting an important economic activity as the U.S. economy recovers from the COVID-19 pandemic.”

Another big issue has been the requirement that first-time student visa applicants have in-person interviews at U.S. embassies and consulates.

The group cited a study that the overall economic impact generated by international students had declined by $1.8 billion during the 2019-2020 academic year, from $40.5 billion in the prior year.

(Reporting by David Shepardson; Editing by Chizu Nomiyama and Grant McCool)

Nowhere as worrisome for COVID-19 as South America, Brazil especially concerning – Pan American Health official

By Julia Symmes Cobb

BOGOTA (Reuters) – South America is now the most worrying region for COVID-19 infections, as cases mount in nearly every country, the director of the Pan American Health Organization (PAHO) said on Wednesday.

“Nowhere are infections as worrisome as in South America,” Director Carissa Etienne said during a weekly news conference.

Brazil has seen the most merciless surge. Scientists forecast it will soon surpass the worst of a record January wave in the United States, with daily fatalities climbing above 4,000 on Tuesday.

“The situation in Brazil is concerning countrywide,” said COVID-19 incident director Sylvain Aldighieri. “Our concern at the moment is also for the Brazilian citizens themselves in this context of health services that are overwhelmed.”

Brazil needs access to more COVID-19 vaccines now and should be able to receive them through global partnerships, Aldighieri said.

PAHO can expand its help to Brazilian states if requested, he said, adding it is already aiding with virus genetic sequencing, procuring oxygen and coronavirus testing.

Intensive care units are nearing capacity in Peru and Ecuador, and in parts of Bolivia and Colombia cases have doubled in the last week, Etienne said, adding that the southern cone is also experiencing an acceleration in cases.

The United States, Brazil and Argentina are among the 10 countries seeing the highest number of new infections globally, she added.

The Americas recorded more than 1.3 million new coronavirus cases and over 37,000 deaths last week, Etienne said, more than half of all deaths reported globally.

“We cannot ease public health and social interventions without good data and justification,” Etienne said, adding slowing and stopping transmission “requires decisive action by local and national governments.”

More than 210 million vaccine doses have been administered across the Americas, Etienne said.

Bolivia, Nicaragua and Haiti may be affected by Serum Institute of India vaccine shipment delays, said sub-director Jarbas Barbosa, but the World Health Organization is appealing to the Indian government to ensure shipment agreements.

(Reporting by Julia Symmes Cobb; Editing by Bill Berkro)

Brazil scrambles to secure sedatives as hospitals overwhelmed by COVID-19

By Reuters Staff

SAO PAULO (Reuters) – An emergency shipment of sedatives needed to intubate severely ill COVID-19 patients arrived in Brazil late on Thursday from China, as the South American country scrambles for supplies due to severe shortages of the vital drugs.

In recent days, Rio de Janeiro and Sao Paulo have both sounded the alarm over shortages of sedatives, with Sao Paulo’s Health Secretary saying the city’s ability to care for seriously ill COVID-19 patients is on the verge of collapse.

Brazil has become the epicenter of the pandemic, with more Brazilians dying of the virus each day than anywhere else in the world.

President Jair Bolsonaro has opposed lockdowns and held large events in which he often does not wear a mask. He has only recently embraced vaccines as a possible solution.

The cargo of 2.3 million drugs, donated by major Brazilian companies including miner Vale and oil producer Petrobras, touched down in Sao Paulo just after 10 p.m. local time.

As the health crisis worsens, Brazil is also negotiating with other countries for emergency supplies, with donations from Spain expected to arrive next week.

Brazil has recorded a total of 365,444 coronavirus deaths – second only to the United States – and 13,746,681 confirmed COVID-19 cases.

Brazil’s COVID-19 response cost thousands of lives, says humanitarian group

By Reuters Staff

RIO DE JANEIRO (Reuters) – The Brazilian government’s “failed response” to the pandemic led to thousands of otherwise avoidable deaths and created a humanitarian catastrophe that is still playing out, aid group Medecins Sans Frontieres (MSF) said on Thursday.

Brazil’s COVID-19 outbreak is the deadliest in the world after the United States and is currently leading in average daily mortalities. Last week more than a quarter of all global deaths were in Brazil.

A brutal second wave has hospitals saying they are running short of crucial drugs for intubating patients and most Brazilian states report that intensive care units are at or near capacity.

Right-wing President Jair Bolsonaro has opposed lockdowns, and has held large events in which he often does not wear a mask. He has only recently embraced vaccines as a possible solution.

“More than one year into the COVID-19 pandemic, the failed response in Brazil has caused a humanitarian catastrophe,” said Christos Christou, a medical doctor and president of MSF, sometimes called Doctors Without Borders in English.

“Each week there is a grim new record of deaths and infections – the hospitals are overflowing and yet there is still no coordinated centralized response,” Christou said in a briefing with reporters, adding the situation was expected to become even worse in the weeks ahead.

Bolsonaro has openly fought against state and local governments seeking to institute lockdowns, saying Brazilians need to get on with normal life and that job losses are more dangerous than the virus.

MSF Director-General Meinie Nicolai said the surge in cases cannot be blamed only on the contagious Brazilian COVID-19 variant, known as P.1.

“The P.1 variant is certainly a problem, but this doesn’t explain the situation in Brazil,” she said.