Atlas Iron Ltd has shipped over 1 million tonnes of ore during 2009 as the miner achieves all of its key production and operating targets.
The Australian miner shipped 1.02 million tonnes of iron ore during calendar 2009 from its Pardoo direct shipping ore project in Western Australia' Pilbara region and 1.08 million tonnes since it started shipments in December 2008, Perth-based Atlas said in a statement on Friday.
"This is a fantastic achievement for the Company, particularly when you consider that we started mining in the middle of the global financial crisis in late 2008," Atlas chief executive David Flanagan said in the statement.
"I would like to thank Atlas staff, our contractors and FMG (Fortescue Metals Group Ltd)."
Atlas shipped the ore through Fortescue's Port Hedland port facility.
Source: AAP
Friday, December 11, 2009
Molybdenum Prices Continue To Slide
Molybdenum prices are continuing to slide, reflecting the market's poor fundamentals. But there is debate within the marketplace about futures prices since some analysts say they weaken further in early 2010 while at least one producers see a demand surge ahead.
Steel mills are working down moly inventories this month and ordering little new stock, according to alloys/ferroalloys buyers at two steel mills, so the spot price have slipped to an average $10.75/lb this month from an average $11.01 in November and the peak of $16.64 in August.
Last summer, the mills were buying moly extensively just prior to the dramatic pickup in weekly carbon steelmaking output that has since stalled. Atop that, "the mooted revival in the stainless steel industry has failed to materialize," says independent consultant Angus MacMillan.
Traders have told AMM.com they expect business to be slow through year's end, which is similar to the commentary from those responding to this month's Purchasing.com buyers' survey. They see December as a lackluster buying for molybdenum. That meshes with a trader's comment to AMM.com that "December is going to be a tough month because deliveries are going to be cut back because of the holidays and people don't want to hold inventories toward the end of the year."
Looking ahead, Kevin Loughrey, CEO of moly producer Thompson Creek Metals, tells a mining conference in New York that steelmaking activity likely will pick up in January, raising molybdenum demand. He says the Colorado-based company expects demand to increase due to recovering economic activity and new uses for the metal, while supply could be constrained by delayed development of new mines caused by the global financial crisis. Loughrey expects global demand for moly to rise to 600 million lbs by 2015 from about 460 million lbs this year.
Source: Purchasing.com
Steel mills are working down moly inventories this month and ordering little new stock, according to alloys/ferroalloys buyers at two steel mills, so the spot price have slipped to an average $10.75/lb this month from an average $11.01 in November and the peak of $16.64 in August.
Last summer, the mills were buying moly extensively just prior to the dramatic pickup in weekly carbon steelmaking output that has since stalled. Atop that, "the mooted revival in the stainless steel industry has failed to materialize," says independent consultant Angus MacMillan.
Traders have told AMM.com they expect business to be slow through year's end, which is similar to the commentary from those responding to this month's Purchasing.com buyers' survey. They see December as a lackluster buying for molybdenum. That meshes with a trader's comment to AMM.com that "December is going to be a tough month because deliveries are going to be cut back because of the holidays and people don't want to hold inventories toward the end of the year."
Looking ahead, Kevin Loughrey, CEO of moly producer Thompson Creek Metals, tells a mining conference in New York that steelmaking activity likely will pick up in January, raising molybdenum demand. He says the Colorado-based company expects demand to increase due to recovering economic activity and new uses for the metal, while supply could be constrained by delayed development of new mines caused by the global financial crisis. Loughrey expects global demand for moly to rise to 600 million lbs by 2015 from about 460 million lbs this year.
Source: Purchasing.com
Indian Steel Prices To Rise On Costlier Ore
Rising demand and steep rise in raw material prices may lead to a 10-30% hike in prices.
After a downward trend, steel prices are headed for an increase next month, led by a demand push and steep increase in raw material prices.
The raw material negotiations are slated to start in January and indications are that the increase in new contract prices could be between 10 and 30 per cent. Last year, iron ore contract prices were sealed at $80 a tonne (Rs 3,742). Currently, spot iron prices in China are trading at $126 a tonne (Rs 5,893), an increase of 13.5 per cent in the past six months. Coking coal prices have increased to $186 (Rs 8,692) a tonne since May. Last year, contract prices were $129 (Rs 6,033) a tonne.
Jayant Acharya, director (sales & marketing), JSW Steel, said contracts could settle at $140 (Rs 6,548) a tonne, while iron ore prices would also increase.
Coupled with a demand push from the automobile and consumer durable sectors in the domestic market, the steel industry was headed for better times. “Prices have bottomed out. For next month, the inclination is to increase prices,” said Acharya.
That is the sentiment among most producers. “Raw material prices are increasing because there is demand from the user industries,” said Anil Sureka, director (finance), Ispat Industries.
The increase in January would be after five months. This month, some of the producers made price adjustments, while some just rolled over prices.
Sureka pointed out, international steel prices were also on the rise. Over the past fortnight, global prices have increased by around $20 (Rs 935) a tonne. “This is holiday season and once it’s over, activities will start picking up in the international market,” said industry sources. At present, Indian steel prices are around $20 a tonne higher than international prices. Hot-rolled coil, the benchmark price for flat products used by the automobile and consumer durable sectors, is at Rs 31,000 a tonne now. Prices of imported steel scrap also increased from $290 to $340 a tonne in just one month.
However, China, which consumes and produces around 50 per cent of global steel, would ultimately determine the price swing. According to reports, China is expected to increase output by around 10 per cent next year. The steel guzzler has also reduced exports, indicating a higher proportion of production being consumed domestically. Standard Chartered Bank’s commodity outlook said the consumption strength was good for 2010.
Source: Business Standard
After a downward trend, steel prices are headed for an increase next month, led by a demand push and steep increase in raw material prices.
The raw material negotiations are slated to start in January and indications are that the increase in new contract prices could be between 10 and 30 per cent. Last year, iron ore contract prices were sealed at $80 a tonne (Rs 3,742). Currently, spot iron prices in China are trading at $126 a tonne (Rs 5,893), an increase of 13.5 per cent in the past six months. Coking coal prices have increased to $186 (Rs 8,692) a tonne since May. Last year, contract prices were $129 (Rs 6,033) a tonne.
Jayant Acharya, director (sales & marketing), JSW Steel, said contracts could settle at $140 (Rs 6,548) a tonne, while iron ore prices would also increase.
Coupled with a demand push from the automobile and consumer durable sectors in the domestic market, the steel industry was headed for better times. “Prices have bottomed out. For next month, the inclination is to increase prices,” said Acharya.
That is the sentiment among most producers. “Raw material prices are increasing because there is demand from the user industries,” said Anil Sureka, director (finance), Ispat Industries.
The increase in January would be after five months. This month, some of the producers made price adjustments, while some just rolled over prices.
Sureka pointed out, international steel prices were also on the rise. Over the past fortnight, global prices have increased by around $20 (Rs 935) a tonne. “This is holiday season and once it’s over, activities will start picking up in the international market,” said industry sources. At present, Indian steel prices are around $20 a tonne higher than international prices. Hot-rolled coil, the benchmark price for flat products used by the automobile and consumer durable sectors, is at Rs 31,000 a tonne now. Prices of imported steel scrap also increased from $290 to $340 a tonne in just one month.
However, China, which consumes and produces around 50 per cent of global steel, would ultimately determine the price swing. According to reports, China is expected to increase output by around 10 per cent next year. The steel guzzler has also reduced exports, indicating a higher proportion of production being consumed domestically. Standard Chartered Bank’s commodity outlook said the consumption strength was good for 2010.
Source: Business Standard
Thursday, December 10, 2009
UK "Clean Coal" Exploration Approved
The UK's Coal Authority has approved a bid by a company to explore whether coal seams beneath the Humber could be used to produce "clean" energy.
Studies by the Clean Coal Company suggest there are coal reserves of 200m tonnes between Grimsby and Immingham.
That would be enough to meet half the energy needs of Grimsby and Hull for at least 30 years, the company said.
In a process called gasification, coal would be turned into a gas underground and then used as a fuel.
Carbon dioxide would be separated during the gasification process and stored in the underground cavities left by burning the coal.
The Humber is one of five locations around the UK coast to be surveyed by the company for potential energy use.
The site stretches over 50 sq miles (80 sq km), with survey boreholes being drilled at depths of up to 0.7 miles (1.2 km).
COAL GASIFICATION
The process of underground coal gasification works by pumping a mix of water and air or oxygen in to a coal seam, through a borehole
The coal is burnt underground, and the gas produced in the process can then be used as a fuel
Supporters of the process say immediate benefits include no need for traditional mining
The company said the investigations, which will be carried out in the first half of 2010, would have no detrimental impact on marine life, shipping or fishing in the estuary.
If the project does go ahead it would lead to a multi-million pound investment in North East Lincolnshire and create up to 30 jobs.
According to Clean Coal, this would be the first time that the gasification of underground coal would be potentially available to the UK energy market.
The gas extracted in the process can be used to power electricity generating turbines, industrial heating, or used in jet and diesel oil production.
Clean Coal chairman Rohan Courtney said: "Recent developments in directional drilling technology and the growing need for new, secure and environmentally benign sources of energy means that underground coal gasification now merits serious investigation.
"This is an exciting and commercially viable development which can bring significant long-term benefit to Humberside."
A Friends of the Earth spokesman said: "As long as no danger was posed to marine wildlife, and all the C02 produced by any gasification of the coal seam was fully captured and stored underground, then it's definitely a potential source of energy that should be looked at."
Source: BBC
Studies by the Clean Coal Company suggest there are coal reserves of 200m tonnes between Grimsby and Immingham.
That would be enough to meet half the energy needs of Grimsby and Hull for at least 30 years, the company said.
In a process called gasification, coal would be turned into a gas underground and then used as a fuel.
Carbon dioxide would be separated during the gasification process and stored in the underground cavities left by burning the coal.
The Humber is one of five locations around the UK coast to be surveyed by the company for potential energy use.
The site stretches over 50 sq miles (80 sq km), with survey boreholes being drilled at depths of up to 0.7 miles (1.2 km).
COAL GASIFICATION
The process of underground coal gasification works by pumping a mix of water and air or oxygen in to a coal seam, through a borehole
The coal is burnt underground, and the gas produced in the process can then be used as a fuel
Supporters of the process say immediate benefits include no need for traditional mining
The company said the investigations, which will be carried out in the first half of 2010, would have no detrimental impact on marine life, shipping or fishing in the estuary.
If the project does go ahead it would lead to a multi-million pound investment in North East Lincolnshire and create up to 30 jobs.
According to Clean Coal, this would be the first time that the gasification of underground coal would be potentially available to the UK energy market.
The gas extracted in the process can be used to power electricity generating turbines, industrial heating, or used in jet and diesel oil production.
Clean Coal chairman Rohan Courtney said: "Recent developments in directional drilling technology and the growing need for new, secure and environmentally benign sources of energy means that underground coal gasification now merits serious investigation.
"This is an exciting and commercially viable development which can bring significant long-term benefit to Humberside."
A Friends of the Earth spokesman said: "As long as no danger was posed to marine wildlife, and all the C02 produced by any gasification of the coal seam was fully captured and stored underground, then it's definitely a potential source of energy that should be looked at."
Source: BBC
China To Triple Manganese Ore Imports From China
China will triple its manganese ore imports from Ghana, according to information from global steel industry sources.
Manganese ore which is an important raw material for the production of steel is in high demand following the rising demand for steel and the decline in manganese ore stocks.
China which imports about 80% of its manganese ore from Gabon, South Africa, Australia, the ASEAN region and Ghana is intent on doubling the overall import figure.
China plans to triple the 45,000 tonnes manganese ore import from Ghana by 1.8 times.
Available statistics show that from January to October of 2009 the manganese ore from Gabon through China’s Guangdong port reached 349,000 tonnes up by 41.4%, ore from South Africa rose to 218,000 tonnes, up by 11.1%. The ore from Australia was 166,000 tonnes down by 62.6% and from Brazil, China imported 152,000 tonnes, a significant increase by 1.3 fold. Imports from the four countries accounted for 83.7% of the total manganese ore imports through the Guangdong port. An additional, 78,000 tonnes import was from ASEAN.
According to Guangzhou Customs’ available data of December 3, 2009, from January to October of 2009 manganese ore and concentrate imported through Guangdong port reached 1.059 million tonnes worth US$230 million down by 3.7% year-on-year and 55.3% year-on-year.
Compared with September imports, October imports decreased some 14.9 million tonnes up by 39.1% year-on-year worth US$25.93 million down by 60.1% yearon-year.
China’s growing interest in Ghana can be seen in the fact that it has shown a strong interest in the country’s nascent oil industry. About two days ago, China gave money to Ghana to develop its oil infrastructure. China has also been a strong contender for the stake of Kosmos Energy in Ghana’s largest oil field, the Jubilee field.
In October 2009, a Chinese mining company , Bosai Minerals Group Co. Ltd., offered to pay $30 million for the Awaso bauxite mine in Ghana.
World aluminae giant, Rio Tinto, owners of the mine were reported to have agreed to sell 80% stake in the mine to Bosai.
Manganese ore which is an important raw material for the production of steel is in high demand following the rising demand for steel and the decline in manganese ore stocks.
China which imports about 80% of its manganese ore from Gabon, South Africa, Australia, the ASEAN region and Ghana is intent on doubling the overall import figure.
China plans to triple the 45,000 tonnes manganese ore import from Ghana by 1.8 times.
Available statistics show that from January to October of 2009 the manganese ore from Gabon through China’s Guangdong port reached 349,000 tonnes up by 41.4%, ore from South Africa rose to 218,000 tonnes, up by 11.1%. The ore from Australia was 166,000 tonnes down by 62.6% and from Brazil, China imported 152,000 tonnes, a significant increase by 1.3 fold. Imports from the four countries accounted for 83.7% of the total manganese ore imports through the Guangdong port. An additional, 78,000 tonnes import was from ASEAN.
According to Guangzhou Customs’ available data of December 3, 2009, from January to October of 2009 manganese ore and concentrate imported through Guangdong port reached 1.059 million tonnes worth US$230 million down by 3.7% year-on-year and 55.3% year-on-year.
Compared with September imports, October imports decreased some 14.9 million tonnes up by 39.1% year-on-year worth US$25.93 million down by 60.1% yearon-year.
China’s growing interest in Ghana can be seen in the fact that it has shown a strong interest in the country’s nascent oil industry. About two days ago, China gave money to Ghana to develop its oil infrastructure. China has also been a strong contender for the stake of Kosmos Energy in Ghana’s largest oil field, the Jubilee field.
In October 2009, a Chinese mining company , Bosai Minerals Group Co. Ltd., offered to pay $30 million for the Awaso bauxite mine in Ghana.
World aluminae giant, Rio Tinto, owners of the mine were reported to have agreed to sell 80% stake in the mine to Bosai.
Large Lead and Zinc Deposit Discovered In Hubei Province
Interfax China reports that a large-sized lead and zinc deposit, containing 1.5 million tonnes of lead and zinc resources was recently discovered by local authorities in Shennongjia district in western Hubei Province.
According to a Changjiang Times report, exploration work at the deposit is now being funded by the central government.
An employee from the Hubei Provincial Institute of Geological Survey, which is now conducting exploration work at the deposit, said that it will take 4 to 5 years to complete the exploration work at the deposit. Then we will look for a company to cooperate on production. He declined to disclose further details of the deposit.
Source: Steel Guru
According to a Changjiang Times report, exploration work at the deposit is now being funded by the central government.
An employee from the Hubei Provincial Institute of Geological Survey, which is now conducting exploration work at the deposit, said that it will take 4 to 5 years to complete the exploration work at the deposit. Then we will look for a company to cooperate on production. He declined to disclose further details of the deposit.
Source: Steel Guru
Ivanhoe Set To Begin Work On Mongolia Copper-Gold Mine
Ivanhoe Mines will begin full-scale construction at the Mongolian Oyu Tolgoi copper-gold mining complex in 2010, with a year-long budget of US$758 million.
The Vancouver-based company said the 2010 budget, approved with its partner Rio Tinto PLC, provides for an early start on a site-wide development program at the southern Mongolian mining complex.
“The approval of the 2010 construction budget represents the next big step toward bringing this project into production,” said president and CEO John Macken.
“Ivanhoe is considering a schedule that could see construction of the initial open-pit mine completed in 2012 and commercial production begin in 2013.”
Work in 2010 is planned to include pouring concrete for the foundation of the 100,000 tonne-per-day concentrator, installation of a 20-megawatt power station and 35-kilovolt distribution system and construction on a highway link to the Mongolia-China border and a regional airport.
Ivanhoe Mines recently signed the long-awaited deal with Mongolia to develop the Oyu Tolgoi project after a heated national debate over how to exploit the country’s mineral wealth.
The agreement on the gold and copper mine in the Gobi desert was renegotiated repeatedly after opponents complained it shortchanged Mongolia, which lies wedged between Russia and China and has long been wary of foreign domination.
Ivanhoe Mines also has an 80 per cent stake in SouthGobi Energy Resources Ltd., focused on exploring and developing metallurgical and thermal coal deposits in Mongolia and Indonesia.
Source: Canadian Press
The Vancouver-based company said the 2010 budget, approved with its partner Rio Tinto PLC, provides for an early start on a site-wide development program at the southern Mongolian mining complex.
“The approval of the 2010 construction budget represents the next big step toward bringing this project into production,” said president and CEO John Macken.
“Ivanhoe is considering a schedule that could see construction of the initial open-pit mine completed in 2012 and commercial production begin in 2013.”
Work in 2010 is planned to include pouring concrete for the foundation of the 100,000 tonne-per-day concentrator, installation of a 20-megawatt power station and 35-kilovolt distribution system and construction on a highway link to the Mongolia-China border and a regional airport.
Ivanhoe Mines recently signed the long-awaited deal with Mongolia to develop the Oyu Tolgoi project after a heated national debate over how to exploit the country’s mineral wealth.
The agreement on the gold and copper mine in the Gobi desert was renegotiated repeatedly after opponents complained it shortchanged Mongolia, which lies wedged between Russia and China and has long been wary of foreign domination.
Ivanhoe Mines also has an 80 per cent stake in SouthGobi Energy Resources Ltd., focused on exploring and developing metallurgical and thermal coal deposits in Mongolia and Indonesia.
Source: Canadian Press
Australia Coal, Iron Ore Earnings At Record Levels
AUSTRALIA'S export earnings from resources dropped 2 per cent in the September quarter on the back of the rising Australian dollar, but export volumes for iron ore and coal reached record levels.
The latest mineral statistics report from the Australian Bureau of Resource Economics, (Abare), today showed that earnings from energy and mineral resources fell to $30.2 billion, with a 10 per cent increase in the value of the Australian dollar against the US currency playing a major factor in the decline.
Export earnings for coal and iron ore were lower during the September quarter but export volumes of the commodities reached record levels, the report found.
Abare’s deputy executive director, Terry Sheales, said: "Strong demand for coal and iron ore from Japan, the Republic of Korea and China underpinned record export volumes in the September quarter.”
The report also found that production was higher in the quarter for about two-thirds of Australia's major mineral and energy commodities. Significant increases in production were observed for diamonds, iron, steel, refined gold, iron ore, mined nickel and coal.
Commodities recording significant increases in export earnings in the September quarter included liquefied petroleum gas, up 47 per cent to $292 million, nickel, up 31 per cent to $833m and liquefied natural gas, up 8 per cent to $1.7 billion.
The increases were offset by commodities, which recorded declines in export earnings, including metallurgical coal, down 11 per cent to $5.5bn, and thermal coal, down 9 per cent to $3.2bn.
source: The Australian
The latest mineral statistics report from the Australian Bureau of Resource Economics, (Abare), today showed that earnings from energy and mineral resources fell to $30.2 billion, with a 10 per cent increase in the value of the Australian dollar against the US currency playing a major factor in the decline.
Export earnings for coal and iron ore were lower during the September quarter but export volumes of the commodities reached record levels, the report found.
Abare’s deputy executive director, Terry Sheales, said: "Strong demand for coal and iron ore from Japan, the Republic of Korea and China underpinned record export volumes in the September quarter.”
The report also found that production was higher in the quarter for about two-thirds of Australia's major mineral and energy commodities. Significant increases in production were observed for diamonds, iron, steel, refined gold, iron ore, mined nickel and coal.
Commodities recording significant increases in export earnings in the September quarter included liquefied petroleum gas, up 47 per cent to $292 million, nickel, up 31 per cent to $833m and liquefied natural gas, up 8 per cent to $1.7 billion.
The increases were offset by commodities, which recorded declines in export earnings, including metallurgical coal, down 11 per cent to $5.5bn, and thermal coal, down 9 per cent to $3.2bn.
source: The Australian
Hana Mining Discovers More Copper In Ghanzi
Hana Mining has announced completion of 14 new RC drill holes at its Ghanzi copper-silver project in Botswana which extends total mineralisation in the Company's current focus area, Banana zone.
During an interview with Mineweb, Hana Mining CEO Marek Kreczmer said the findings will likely increase the overall resource to 80 - 100m tonnes. This also extends mineralisation by 1600m along strike for two sections in the Banana zone, the South Limb and Southwest Fold Closure.
The highlights of the recent drilling results show that four new holes in the South Limb extend mineralised strike length by 600 metres to 1.8km. Ten new holes in the Southwest fold represent new mineralised strike length of 1000 metres in an area never tested by any type of drilling.
The company said the results in the South Limb show continuation of mineable grade copper/silver mineralisation trending south from previously released results.
Results from the Southwest fold show lower grade, near surface mineralisation over large widths (16 to 48 metres) and at shallow dip. Hana said the main copper minerals in the Southwest fold are malachite and chalcocite, unlike other areas which are predominantly bornite and chalcopyrite.
Kreczmer said he has been spending the past weeks in Botswana's capital, Gaborone, meeting with government officials and looking at various office spaces. He said they hope to have an established office early 2010 in Gaborone.
In June, the company announced that its drilling results have shown an inferred resource of 2.9 billion pounds of copper and 51.5 million ounces of silver at its Ghanzi Copper-Silver deposit.
The company, which is headquartered in Vancouver, Canada and is listed on the TSX (Toronto Stock Exchange) Venture Exchange and the Frankfurt Exchange says it views Botswana as a very favourable area for conducting business and also commended the government's support for developing mining diversification.
The mineralisation at the Ghantsi Copper-Silver property is classified as a sediment-hosted copper-silver deposit. Among the best-known deposits of similar type is the vast Kuperschiefer deposit in Poland where mineralisation occurs to a vertical depth of at least 700 metres and is open.
The company said this type of copper deposit can generate a resource that is both very large and of attractive grade, making it viable for world-scale mining opportunities.
The Ghanzi Project consists of five licence blocks covering 2,200 square kilometres. The area is host to widespread sediment-hosted copper-silver mineralisation. The property has been explored intermittently since 1962 by numerous companies. Hana Mining said the exploration work was done when copper prices were lower than today and regional infrastructure was not as advanced as at present.
The company plans to get power from the Maun grid, which is situated on the northern end of the property and to use the Trans-Kalahari Highway which passes within 10 kilometres of the north end of the property as well.
Hana Mining recently raised about $3.2 million in funding as part of a financing package announced on May 29, 2009 and will now work towards enhancing the value of the deposit by completing power and infrastructure studies and expanding the resource base through testing of drill-ready targets.
Source: Mmegi Online
During an interview with Mineweb, Hana Mining CEO Marek Kreczmer said the findings will likely increase the overall resource to 80 - 100m tonnes. This also extends mineralisation by 1600m along strike for two sections in the Banana zone, the South Limb and Southwest Fold Closure.
The highlights of the recent drilling results show that four new holes in the South Limb extend mineralised strike length by 600 metres to 1.8km. Ten new holes in the Southwest fold represent new mineralised strike length of 1000 metres in an area never tested by any type of drilling.
The company said the results in the South Limb show continuation of mineable grade copper/silver mineralisation trending south from previously released results.
Results from the Southwest fold show lower grade, near surface mineralisation over large widths (16 to 48 metres) and at shallow dip. Hana said the main copper minerals in the Southwest fold are malachite and chalcocite, unlike other areas which are predominantly bornite and chalcopyrite.
Kreczmer said he has been spending the past weeks in Botswana's capital, Gaborone, meeting with government officials and looking at various office spaces. He said they hope to have an established office early 2010 in Gaborone.
In June, the company announced that its drilling results have shown an inferred resource of 2.9 billion pounds of copper and 51.5 million ounces of silver at its Ghanzi Copper-Silver deposit.
The company, which is headquartered in Vancouver, Canada and is listed on the TSX (Toronto Stock Exchange) Venture Exchange and the Frankfurt Exchange says it views Botswana as a very favourable area for conducting business and also commended the government's support for developing mining diversification.
The mineralisation at the Ghantsi Copper-Silver property is classified as a sediment-hosted copper-silver deposit. Among the best-known deposits of similar type is the vast Kuperschiefer deposit in Poland where mineralisation occurs to a vertical depth of at least 700 metres and is open.
The company said this type of copper deposit can generate a resource that is both very large and of attractive grade, making it viable for world-scale mining opportunities.
The Ghanzi Project consists of five licence blocks covering 2,200 square kilometres. The area is host to widespread sediment-hosted copper-silver mineralisation. The property has been explored intermittently since 1962 by numerous companies. Hana Mining said the exploration work was done when copper prices were lower than today and regional infrastructure was not as advanced as at present.
The company plans to get power from the Maun grid, which is situated on the northern end of the property and to use the Trans-Kalahari Highway which passes within 10 kilometres of the north end of the property as well.
Hana Mining recently raised about $3.2 million in funding as part of a financing package announced on May 29, 2009 and will now work towards enhancing the value of the deposit by completing power and infrastructure studies and expanding the resource base through testing of drill-ready targets.
Source: Mmegi Online
Iron Ore Holdings Reaches Agreement Over Phil's Creek
ASX-listed Iron Ore Holdings has reached a final land access agreement with the Martu Idjya Banyjima Native Title Group (MIB) covering the Phil’s Creek iron-ore project, in the Central Pilbara of Western Australia.
This was the second, and final native title agreement covering this project, ensuring that a mining tenure could now be granted.
“This is yet another milestone in the progress of the company towards production at its Phil’s Creek project. We look forward to our future collaboration with the MIB people who will also benefit as a stakeholder in our future progress,” said company MD Matt Rimes.
“The process of negotiation with MIB has allowed us to develop a solid working relationship which will also offer further employment opportunities to local communities as well as the associated financial benefits which will flow from the development of our projects.”
Iron Ore Holdings said in a statement that the agreement followed extensive consultation with the MIB, and was another step in the company’s path towards iron-ore production at Phil’s Creek.
The Phil’s Creek project was expected to be Iron Ore Holding’s first production opportunity. The formal mine gate sale agreement with diversified giant Rio Tinto was now in its final stages and production of up to 1,5 million tons a year was expected to start in late 2010.
Source: Mining Weekly
This was the second, and final native title agreement covering this project, ensuring that a mining tenure could now be granted.
“This is yet another milestone in the progress of the company towards production at its Phil’s Creek project. We look forward to our future collaboration with the MIB people who will also benefit as a stakeholder in our future progress,” said company MD Matt Rimes.
“The process of negotiation with MIB has allowed us to develop a solid working relationship which will also offer further employment opportunities to local communities as well as the associated financial benefits which will flow from the development of our projects.”
Iron Ore Holdings said in a statement that the agreement followed extensive consultation with the MIB, and was another step in the company’s path towards iron-ore production at Phil’s Creek.
The Phil’s Creek project was expected to be Iron Ore Holding’s first production opportunity. The formal mine gate sale agreement with diversified giant Rio Tinto was now in its final stages and production of up to 1,5 million tons a year was expected to start in late 2010.
Source: Mining Weekly
Xstrata Coal Customers "Against Moving To Quaterly Contracts"
XSTRATA COAL says its coking coal customers are "uniformly" against moving to quarterly contract prices, setting the scene for a stoush between coal buyers and sellers over moves to abandon the one-year contract system.
BHP Billiton wants to ditch contracts, but Mark Eames, the head of Xstrata's Australian coal business, told investors the steel mills that buy coking coal were ''fundamentally opposed'' to the move.
A large proportion of coking coal is now sold on one-year contracts. Prices are set early in the year after lengthy negotiations.
But in recent months, miners including BHP, Anglo Coal and Macarthur Coal have indicated they plan to move towards pricing based on a changeable index.
Xstrata customers have told the Anglo-Swiss group that abandoning one-year contracts would disrupt the steel mills' ability to supply their customers.
''For them to effectively set a price for their customers without knowing the costs of their inputs exposes them to considerable additional risk,'' Mr Eames said at an investor briefing in London.
''It exposes the steel makers to considerable uncertainty.''
On the other hand, analysts say that miners advocating the changes stand to gain from index pricing, because it will allow prices to rise more quickly, in line with booming demand from China and India.
Xstrata, the world's biggest thermal coal producer, also said it was keeping a close eye on opportunities in the NSW coal industry, which has recently been swept up in a series of takeovers.
''There remains some potential for consolidation,'' said Peter Freyberg, the chief executive of Xstrata Coal. ''We already have a very significant presence, as do a lot of the other major players.''
However, in a possible reference to a $480 million purchase by the mining tycoon Nathan Tinkler, he said recent deals in the sector appeared to have been overpriced.
Mr Eames gave a bullish view on the outlook for coking coal and thermal coal prices - similar to the upbeat forecasts from other coal companies - as the world economy gathers pace.
Thanks to surging demand from China and dwindling global supply, he said this year's prices would be the second highest on record.
''We are still awaiting recovery in some of our key markets … When these come back in, it bodes very well for the future,'' he said.
In a sign of the potential in China, Mr Eames said the country was building the equivalent of all of Britain's power stations every 15 months, and most were coal-fired plants.
Source: Sydney Morning Herald
BHP Billiton wants to ditch contracts, but Mark Eames, the head of Xstrata's Australian coal business, told investors the steel mills that buy coking coal were ''fundamentally opposed'' to the move.
A large proportion of coking coal is now sold on one-year contracts. Prices are set early in the year after lengthy negotiations.
But in recent months, miners including BHP, Anglo Coal and Macarthur Coal have indicated they plan to move towards pricing based on a changeable index.
Xstrata customers have told the Anglo-Swiss group that abandoning one-year contracts would disrupt the steel mills' ability to supply their customers.
''For them to effectively set a price for their customers without knowing the costs of their inputs exposes them to considerable additional risk,'' Mr Eames said at an investor briefing in London.
''It exposes the steel makers to considerable uncertainty.''
On the other hand, analysts say that miners advocating the changes stand to gain from index pricing, because it will allow prices to rise more quickly, in line with booming demand from China and India.
Xstrata, the world's biggest thermal coal producer, also said it was keeping a close eye on opportunities in the NSW coal industry, which has recently been swept up in a series of takeovers.
''There remains some potential for consolidation,'' said Peter Freyberg, the chief executive of Xstrata Coal. ''We already have a very significant presence, as do a lot of the other major players.''
However, in a possible reference to a $480 million purchase by the mining tycoon Nathan Tinkler, he said recent deals in the sector appeared to have been overpriced.
Mr Eames gave a bullish view on the outlook for coking coal and thermal coal prices - similar to the upbeat forecasts from other coal companies - as the world economy gathers pace.
Thanks to surging demand from China and dwindling global supply, he said this year's prices would be the second highest on record.
''We are still awaiting recovery in some of our key markets … When these come back in, it bodes very well for the future,'' he said.
In a sign of the potential in China, Mr Eames said the country was building the equivalent of all of Britain's power stations every 15 months, and most were coal-fired plants.
Source: Sydney Morning Herald
Wednesday, December 9, 2009
Baosteel Replaces CISA As Lead Iron Ore Negotiator
Action seems to be hotting up on the iron ore price negotiation front with steelmaker Baosteel Group replacing China Iron and Steel Association (CISA) as the chief negotiator for the Chinese side in its talks with the big three iron ore suppliers, BHP Billiton, Rio Tinto and Vale.
The negotiations, which are likely to start by the end of December, also assume significance against the backdrop of Rio and BHP further consolidating their mining operations over the weekend.
This year's iron ore price negotiations reached an impasse in June after China's chief negotiator CISA insisted on a 45 percent discount over last year's prices, after a 33 percent cut in benchmark iron ore prices had been reached by the "Big Three" with other Asian steel mills.
Chinese steel mills have since then started sourcing ore supplies from the spot market or signed individual contracts with the "Big Three", for a 33 to 28 percent cut, without revealing details.
Baosteel, the country's largest steel mill, was always at the forefront of the iron ore pricing talks since 2003, but was replaced by CISA this year as prices continued to increase.
The bitter and protracted row over the ore talks raised doubts in industry circles on whether the association was the right candidate to spearhead the negotiations.
"Next year's iron ore talks could see results, as Baosteel has several years of experience in iron ore talks. They are also capable of formulating decisions that can best encompass the prevailing market trends," said Yu Liangui, a steel analyst with Mysteel Research Institute.
During the 2007 negotiations Baosteel achieved the first price agreement of that year with Vale of Brazil, only 9.5 percent up from the previous year. Achieving the first agreement of the year was crucial, as it prevented the levels of other international agreements pushing the price up for China. This meant that in 2007, China's steelmakers achieved record profits on the back of stable and relatively low production costs.
"It would suit Baosteel better if it is able to reach a first price agreement with Vale as it is a long-term price advocator. Such a move would also be a blow to BHP, which always prefers to use the spot price to follow the long-term price," said Yu.
However, he warned that inordinate delays in fixing a price would be detrimental for Chinese steelmakers as prices may go up once the global economy starts recovering.
Baosteel is planning to replace its present chief negotiator Ding Shouhu in next year's talks, while Rio Tinto may also have a new representative, according to sina.com.
The real challenge in next year's talks would be to achieve a price that is in the best interests of all concerned. That seems to be a tough task as international analysts have predicted a 20 to 30 percent increase in iron ore prices for 2010.
The decision of Rio Tinto and BHP Billiton to merge their Australian iron ore resources is also not good news for Chinese steelmakers.
The two mining giants signed a binding agreement last week to consolidate their iron ore operations in Western Australia. Plans for the joint venture were originally announced in June and are awaiting regulatory approval.
"China will face a more serious threat if the Rio and BHP joint venture gains ground as their resource monopoly will help them in controlling capacities and prices," said Zhang Ye, vice-general manager of China National Minerals, a wholly owned subsidiary of metals trader China Minmetals.
Zhang said Chinese steel mills should look at diversifying their iron ore supplies further and also improve the negotiation tactics at the talks.
Yang Siming, chairman of Nanjing Iron & Steel Group, said benchmark iron ore prices might rise 5 to 10 percent next year. But the bigger worry for Chinese mills would be the skyrocketing ocean freight charges.
Analysts also feel that the joint moves by BHP and Rio would propel Chinese steelmakers to the industry consolidation mode.
The Chinese government has for long wanted to consolidate the fragmented industry as domestic steel firms are disadvantaged in annual international iron ore negotiations due to the low industry concentration.
The nation's iron ore imports rose 36.8 percent to 45.5 million tons in the first 10 months from a year earlier, Customs said on Nov 12.
Source: China Daily
The negotiations, which are likely to start by the end of December, also assume significance against the backdrop of Rio and BHP further consolidating their mining operations over the weekend.
This year's iron ore price negotiations reached an impasse in June after China's chief negotiator CISA insisted on a 45 percent discount over last year's prices, after a 33 percent cut in benchmark iron ore prices had been reached by the "Big Three" with other Asian steel mills.
Chinese steel mills have since then started sourcing ore supplies from the spot market or signed individual contracts with the "Big Three", for a 33 to 28 percent cut, without revealing details.
Baosteel, the country's largest steel mill, was always at the forefront of the iron ore pricing talks since 2003, but was replaced by CISA this year as prices continued to increase.
The bitter and protracted row over the ore talks raised doubts in industry circles on whether the association was the right candidate to spearhead the negotiations.
"Next year's iron ore talks could see results, as Baosteel has several years of experience in iron ore talks. They are also capable of formulating decisions that can best encompass the prevailing market trends," said Yu Liangui, a steel analyst with Mysteel Research Institute.
During the 2007 negotiations Baosteel achieved the first price agreement of that year with Vale of Brazil, only 9.5 percent up from the previous year. Achieving the first agreement of the year was crucial, as it prevented the levels of other international agreements pushing the price up for China. This meant that in 2007, China's steelmakers achieved record profits on the back of stable and relatively low production costs.
"It would suit Baosteel better if it is able to reach a first price agreement with Vale as it is a long-term price advocator. Such a move would also be a blow to BHP, which always prefers to use the spot price to follow the long-term price," said Yu.
However, he warned that inordinate delays in fixing a price would be detrimental for Chinese steelmakers as prices may go up once the global economy starts recovering.
Baosteel is planning to replace its present chief negotiator Ding Shouhu in next year's talks, while Rio Tinto may also have a new representative, according to sina.com.
The real challenge in next year's talks would be to achieve a price that is in the best interests of all concerned. That seems to be a tough task as international analysts have predicted a 20 to 30 percent increase in iron ore prices for 2010.
The decision of Rio Tinto and BHP Billiton to merge their Australian iron ore resources is also not good news for Chinese steelmakers.
The two mining giants signed a binding agreement last week to consolidate their iron ore operations in Western Australia. Plans for the joint venture were originally announced in June and are awaiting regulatory approval.
"China will face a more serious threat if the Rio and BHP joint venture gains ground as their resource monopoly will help them in controlling capacities and prices," said Zhang Ye, vice-general manager of China National Minerals, a wholly owned subsidiary of metals trader China Minmetals.
Zhang said Chinese steel mills should look at diversifying their iron ore supplies further and also improve the negotiation tactics at the talks.
Yang Siming, chairman of Nanjing Iron & Steel Group, said benchmark iron ore prices might rise 5 to 10 percent next year. But the bigger worry for Chinese mills would be the skyrocketing ocean freight charges.
Analysts also feel that the joint moves by BHP and Rio would propel Chinese steelmakers to the industry consolidation mode.
The Chinese government has for long wanted to consolidate the fragmented industry as domestic steel firms are disadvantaged in annual international iron ore negotiations due to the low industry concentration.
The nation's iron ore imports rose 36.8 percent to 45.5 million tons in the first 10 months from a year earlier, Customs said on Nov 12.
Source: China Daily
Indian Sponge Iron Prices Up 5 Per Cent In Two Days
Sponge iron producers in India have raised basic selling prices of their products by 5.25 per cent in the last two days on apprehensions that the ongoing raids to stop illegal iron ore mining across the country may create scarcity of the raw material in the short term.
With the current upward revision, high quality of sponge iron was quoted at Rs 14,200 a tonne while the mid and low grade steel-making raw material was sold at Rs 13,700-14,000 a tonne.
Producers, however, consider the current trend a “blessing in disguise” as after several months of poor demand there is a revival in steel and thereby, sponge iron industry is in sight. Sponge iron producers are looking for an opportunity to raise their products’ selling prices further to cash in on the anticipated rise in demand.
“The industry was operating with virtually ‘zero’ margin and working just to honour the commitments. Profit margins had bottomed out due to high iron ore prices and low demand from steel industry,” said Amitabh Mudgal, vice president (Marketing and Corporate Affairs) of Monnet Ispat, one of the largest players in the industry.
With revival in the construction sector, it is likely to see a huge investment in the coming months. Pending projects are likely to get second round of funding by December-end.
Also steel scrap, another raw material for steelmaking, was selling at $340 a tonne as against $290-315 a tonne a month ago. As a result, billet and re-bar producers raised prices in tandem to sell their produce at Rs 23,000 a tonne and Rs 26,700 a tonne, respectively.
Meanwhile, R K Sharma, Secretary General of the Federation of Indian Minerals Industries (FIMI), the apex mining trade body, said the closure of 56 mines (50 in Orissa and 6 in Andhra Pradesh) is unlikely to result in scarcity of iron ore in the country. Rival iron ore producers always take advantage of closures of mines and they raise production. Hence, there would no shortage of iron ore in the country, Sharma said.
According to sources, the government suspended mining activity in 128 mines and cancelled 482 trading licences in Orissa for acts of irregularities following vigilance raids.
The government is also cracking down companies and traders, engaged in illegal mining in Goa. Goa, Andhra Pradesh and Orissa, the major ore producing states in the country, together contribute 50 per cent of exports.
Source: Business Standard
With the current upward revision, high quality of sponge iron was quoted at Rs 14,200 a tonne while the mid and low grade steel-making raw material was sold at Rs 13,700-14,000 a tonne.
Producers, however, consider the current trend a “blessing in disguise” as after several months of poor demand there is a revival in steel and thereby, sponge iron industry is in sight. Sponge iron producers are looking for an opportunity to raise their products’ selling prices further to cash in on the anticipated rise in demand.
“The industry was operating with virtually ‘zero’ margin and working just to honour the commitments. Profit margins had bottomed out due to high iron ore prices and low demand from steel industry,” said Amitabh Mudgal, vice president (Marketing and Corporate Affairs) of Monnet Ispat, one of the largest players in the industry.
With revival in the construction sector, it is likely to see a huge investment in the coming months. Pending projects are likely to get second round of funding by December-end.
Also steel scrap, another raw material for steelmaking, was selling at $340 a tonne as against $290-315 a tonne a month ago. As a result, billet and re-bar producers raised prices in tandem to sell their produce at Rs 23,000 a tonne and Rs 26,700 a tonne, respectively.
Meanwhile, R K Sharma, Secretary General of the Federation of Indian Minerals Industries (FIMI), the apex mining trade body, said the closure of 56 mines (50 in Orissa and 6 in Andhra Pradesh) is unlikely to result in scarcity of iron ore in the country. Rival iron ore producers always take advantage of closures of mines and they raise production. Hence, there would no shortage of iron ore in the country, Sharma said.
According to sources, the government suspended mining activity in 128 mines and cancelled 482 trading licences in Orissa for acts of irregularities following vigilance raids.
The government is also cracking down companies and traders, engaged in illegal mining in Goa. Goa, Andhra Pradesh and Orissa, the major ore producing states in the country, together contribute 50 per cent of exports.
Source: Business Standard
China Gets Ready To Take On Iron Ore Giants
China’s iron and steel industry looks set for mergers and integrations next year, as the sector gets ready to build its bargaining power to take on BHP Billiton and Rio Tinto.
A planned $US116 billion ($128.3 billion) joint venture of the Pilbara iron ore assets owned by BHP Billiton and Rio Tinto has upset many customers, including those in China.
The mining giants signed a binding contract for the merger of their iron ore operations on Saturday, expected to create $US10 billion in synergies for the companies.
But China’s official China Daily News said today that the move was conveying ‘‘severe price pressure to domestic iron and steel companies’’ and plans were made to respond.
‘‘Chinese companies have to concentrate and strengthen the bargaining power in price negotiations by integrating numerous smaller companies into several big strong players,’’ the news organisation said on its website.
‘‘Chinese industry has been considering the integrations, but must speed up.
‘‘The two giant iron ore suppliers have an over 30 per cent market share in total on the global iron ore market, and the merger makes a stronger monopoly,’’ it said.
In benchmark price negotiations for iron ore this year, Chinese steel companies were represented largely by the China Iron and Steel Industry (CISA), which demanded a better deal than competitors elsewhere.
But CISA came under criticism after its demands were rebuffed by iron ore sellers, and many Chinese companies were left paying spot prices, which were higher than benchmark prices.
The joint venture between BHP Billiton and Rio Tinto still must clear regulatory hurdles, including from European and Chinese regulators.
Source: Sydney Morning Herald
A planned $US116 billion ($128.3 billion) joint venture of the Pilbara iron ore assets owned by BHP Billiton and Rio Tinto has upset many customers, including those in China.
The mining giants signed a binding contract for the merger of their iron ore operations on Saturday, expected to create $US10 billion in synergies for the companies.
But China’s official China Daily News said today that the move was conveying ‘‘severe price pressure to domestic iron and steel companies’’ and plans were made to respond.
‘‘Chinese companies have to concentrate and strengthen the bargaining power in price negotiations by integrating numerous smaller companies into several big strong players,’’ the news organisation said on its website.
‘‘Chinese industry has been considering the integrations, but must speed up.
‘‘The two giant iron ore suppliers have an over 30 per cent market share in total on the global iron ore market, and the merger makes a stronger monopoly,’’ it said.
In benchmark price negotiations for iron ore this year, Chinese steel companies were represented largely by the China Iron and Steel Industry (CISA), which demanded a better deal than competitors elsewhere.
But CISA came under criticism after its demands were rebuffed by iron ore sellers, and many Chinese companies were left paying spot prices, which were higher than benchmark prices.
The joint venture between BHP Billiton and Rio Tinto still must clear regulatory hurdles, including from European and Chinese regulators.
Source: Sydney Morning Herald
Tuesday, December 8, 2009
Queensland To Float QR Coal
THE Queensland Government will float its $7 billion coal and freight rail business next year, after overhauling its $16 billion privatisation strategy.
Queensland Rail is considered the pick of a suite of state assets the Government plans to sell. It has decided to offload QR's coal and freight network via an initial public offering and lease out the Abbot Point coal terminal, Port of Brisbane and Queensland Motorways.
The Queensland Government will retain ownership of QR's passenger business. The coal and freight arm is to be renamed QR National and floated in the last quarter of 2010. The Queensland Government will retain a stake of 25 to 40 per cent, but will sell down its interest over time.
Queenslanders will be given priority to buy shares. Individual investors or companies will be limited to owning 15 per cent of QR National.
Source: Melbourne Age
Queensland Premier Anna Bligh has faced a backlash against her privatisation plans, with 80 per cent of Queenslanders opposed to the mass sale of assets.
The Queensland Government has already put Forestry Plantations Queensland up for sale. A 99-year lease to the Port of Brisbane will be sold in mid-2010, followed by a 99-year lease in Abbot Point at the end of the year. A 50-year franchise of Queensland Motorways will be sold by mid-2011.
Queensland Rail is considered the pick of a suite of state assets the Government plans to sell. It has decided to offload QR's coal and freight network via an initial public offering and lease out the Abbot Point coal terminal, Port of Brisbane and Queensland Motorways.
The Queensland Government will retain ownership of QR's passenger business. The coal and freight arm is to be renamed QR National and floated in the last quarter of 2010. The Queensland Government will retain a stake of 25 to 40 per cent, but will sell down its interest over time.
Queenslanders will be given priority to buy shares. Individual investors or companies will be limited to owning 15 per cent of QR National.
Source: Melbourne Age
Queensland Premier Anna Bligh has faced a backlash against her privatisation plans, with 80 per cent of Queenslanders opposed to the mass sale of assets.
The Queensland Government has already put Forestry Plantations Queensland up for sale. A 99-year lease to the Port of Brisbane will be sold in mid-2010, followed by a 99-year lease in Abbot Point at the end of the year. A 50-year franchise of Queensland Motorways will be sold by mid-2011.
Puda Coal In Equity Transfer Agreement
Puda Coal, Inc.,a supplier of metallurgical coking coal used for steel manufacturing in China, has closed an 18% equity transfer agreement with Shanxi Jianhe Coal Industry Ltd. Co.
In May 2009, Puda entered into an equity transfer agreement to acquire 18% of Jianhe Coal. Pursuant to the agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement.
The company said it will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.
China-based Puda Coal, through its subsidiaries, supplies metallurgical coking coal used to produce coke for steel manufacturing in China. The company currently possesses 3.5 million metric tons of annual coking coal capacity.
SourcE: Trading Markets
In May 2009, Puda entered into an equity transfer agreement to acquire 18% of Jianhe Coal. Pursuant to the agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement.
The company said it will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.
China-based Puda Coal, through its subsidiaries, supplies metallurgical coking coal used to produce coke for steel manufacturing in China. The company currently possesses 3.5 million metric tons of annual coking coal capacity.
SourcE: Trading Markets
Ferrochrome Producers Reducing Output
TEX reports that the movements to reduce production of ferrochrome are enlarging. Both companies of Assmang and Samancor Chrome in South Africa have entered into the structure to reduce their production of ferrochrome and, following these reductions in South Africa, Eti Krom of Turkey has also moved to reduce their production of ferrochrome.
Eti Krom announced on the end of last week that this reduction in production of ferrochrome has been implemented immediately. Eti Krom had so far operated the facilities by 80% of total capacity but has now decreased this operation rate to 50% of the capacity. Assmang of South Africa already said that one small electric furnace is suspended to operate from the end of November.
Also, Samancor Chrome has possessed 16 electric furnaces but a number of electric furnaces under operations in November has decreased to 10 furnaces.
According to a preliminary report compiled and released by International Chrome Development Association, the world output of high carbon ferrochrome in July to September quarter of 2009 was 1,713,000 tonnes, up by 22.2% QoQ as compared with that of 1,401,000 tonnes in the preceding quarter of April to June 2009 quarter.
The production activities of stainless steel in China have stalled and, since such major stainless steel companies as Taiyuan iron & Steel, Baosteel and Zhangjiagang Pohang Stainless Steel have been reducing their production by reason of maintenance of their facilities, the output of stainless steel in China for October to December quarter is anticipated to have a decline of 13% to 15% from that for the preceding quarter of July to September.
Also, the production of stainless steel in Europe was once forecasted to expand but the reality is supposed to be unable to increase as expected. Furthermore, the output of stainless steel products in Japan still depends on exports and, accordingly, one of leading stainless steel companies in Japan is moving to reduce their production from November.
Source: Steel Guru/Tex
Eti Krom announced on the end of last week that this reduction in production of ferrochrome has been implemented immediately. Eti Krom had so far operated the facilities by 80% of total capacity but has now decreased this operation rate to 50% of the capacity. Assmang of South Africa already said that one small electric furnace is suspended to operate from the end of November.
Also, Samancor Chrome has possessed 16 electric furnaces but a number of electric furnaces under operations in November has decreased to 10 furnaces.
According to a preliminary report compiled and released by International Chrome Development Association, the world output of high carbon ferrochrome in July to September quarter of 2009 was 1,713,000 tonnes, up by 22.2% QoQ as compared with that of 1,401,000 tonnes in the preceding quarter of April to June 2009 quarter.
The production activities of stainless steel in China have stalled and, since such major stainless steel companies as Taiyuan iron & Steel, Baosteel and Zhangjiagang Pohang Stainless Steel have been reducing their production by reason of maintenance of their facilities, the output of stainless steel in China for October to December quarter is anticipated to have a decline of 13% to 15% from that for the preceding quarter of July to September.
Also, the production of stainless steel in Europe was once forecasted to expand but the reality is supposed to be unable to increase as expected. Furthermore, the output of stainless steel products in Japan still depends on exports and, accordingly, one of leading stainless steel companies in Japan is moving to reduce their production from November.
Source: Steel Guru/Tex
Viable Alternatives To Fossil Fuels "Decades Away"
As the Climate Change talks get underway in Copenhagen this week, there is much attention focused on alternative energy sources that produce little or no greenhouse gas pollution. Some of these energy sources - like wind, solar, biomass and geothermal - are also attractive because they are renewable and offset the need for imported oil, gas or coal. But, it will be a long time before any of these energy sources will be a large-scale alternative to fossil fuels.
Most analysts regard non-fossil fuel-based energies as a supplement rather than as an alternative to traditional energy sources. Even though their development is expanding rapidly, they provide less than one percent of energy needs.
At a recent talk at the James A. Baker Institute for Public Policy at Rice University in Houston, Ambassador Richard Jones, Deputy Executive Director of the International Energy Agency, assessed future energy supplies and demand.
"Modern renewable energy technologies grow," said Richard Jones. "In fact, they see the fastest rate of increase. But their share of total energy use is so small today that even by 2030, they are only taking about [providing] two percent [of the energy consumed worldwide]."
But in some green communities around the world, eco-friendly energies are beginning to replace fossil fuels. In Austin, the capital of Texas, renewable energies are having a major impact. This fast-growing city gets about a tenth of its electrical power from wind turbines in the western part of the state.
Roger Duncan is General Manager of the electrical utility, Austin Energy.
"We get somewhere between 10 and 12 percent of our energy from renewable energy and the remainder from coal, nuclear and gas," said Roger Duncan. "We have plans going forward to get 30 percent of our energy from renewables by the year 2020."
Most power generation in Austin will depend on fossil fuels like coal and natural gas for decades to come. But Duncan says that as those fuels become more expensive, the outlook for renewables improves.
"Fossil fuels are cheap today, but rising in cost," he said. "And we expect them to rise further in the future because of carbon constraints. Some of the renewables are expensive today, but are dropping in cost. And we expect in a few years, or a decade at least, for them to drop substantially in cost."
But at least some of the cost of renewables today is offset by government subsidies that are far higher as a percentage for each unit of energy produced than subsidies for oil, gas and coal.
But Baker Institute energy economist Ken Medlock says the public needs to understand that development of alternative energy through government programs is not free.
"It is going to cost something to do this," said Ken Medlock. "And at the end of the day, if you push too hard, the cost only rises. And who ends up paying for that? Well, it is you and me."
Medlock says development of renewable sources of energy makes sense because fossil fuels will not last forever. But he adds that government should take a different approach.
"If we were to target funds at R&D - basic research and development - rather than implementation of technology that is not quite there yet, I think in the long run we would be much more successful," he said.
In the coming decades, Medlock says, the United States can use as a transitional fuel abundant natural gas that burns 50 percent cleaner than coal. But, he says, rapid advances in the effectiveness of technologies such as solar energy could shorten that time frame.
"At some point, it becomes commercially competitive," said Medlock. "And when that happens, we do not need policy to pick solar versus something else because solar will win out."
Medlock and other experts say there is a major alternative to both fossil fuels and renewables - the conservation of energy through more efficient vehicles, better constructed homes and office buildings, and better methods for monitoring energy use.
Source: Voice Of America
Most analysts regard non-fossil fuel-based energies as a supplement rather than as an alternative to traditional energy sources. Even though their development is expanding rapidly, they provide less than one percent of energy needs.
At a recent talk at the James A. Baker Institute for Public Policy at Rice University in Houston, Ambassador Richard Jones, Deputy Executive Director of the International Energy Agency, assessed future energy supplies and demand.
"Modern renewable energy technologies grow," said Richard Jones. "In fact, they see the fastest rate of increase. But their share of total energy use is so small today that even by 2030, they are only taking about [providing] two percent [of the energy consumed worldwide]."
But in some green communities around the world, eco-friendly energies are beginning to replace fossil fuels. In Austin, the capital of Texas, renewable energies are having a major impact. This fast-growing city gets about a tenth of its electrical power from wind turbines in the western part of the state.
Roger Duncan is General Manager of the electrical utility, Austin Energy.
"We get somewhere between 10 and 12 percent of our energy from renewable energy and the remainder from coal, nuclear and gas," said Roger Duncan. "We have plans going forward to get 30 percent of our energy from renewables by the year 2020."
Most power generation in Austin will depend on fossil fuels like coal and natural gas for decades to come. But Duncan says that as those fuels become more expensive, the outlook for renewables improves.
"Fossil fuels are cheap today, but rising in cost," he said. "And we expect them to rise further in the future because of carbon constraints. Some of the renewables are expensive today, but are dropping in cost. And we expect in a few years, or a decade at least, for them to drop substantially in cost."
But at least some of the cost of renewables today is offset by government subsidies that are far higher as a percentage for each unit of energy produced than subsidies for oil, gas and coal.
But Baker Institute energy economist Ken Medlock says the public needs to understand that development of alternative energy through government programs is not free.
"It is going to cost something to do this," said Ken Medlock. "And at the end of the day, if you push too hard, the cost only rises. And who ends up paying for that? Well, it is you and me."
Medlock says development of renewable sources of energy makes sense because fossil fuels will not last forever. But he adds that government should take a different approach.
"If we were to target funds at R&D - basic research and development - rather than implementation of technology that is not quite there yet, I think in the long run we would be much more successful," he said.
In the coming decades, Medlock says, the United States can use as a transitional fuel abundant natural gas that burns 50 percent cleaner than coal. But, he says, rapid advances in the effectiveness of technologies such as solar energy could shorten that time frame.
"At some point, it becomes commercially competitive," said Medlock. "And when that happens, we do not need policy to pick solar versus something else because solar will win out."
Medlock and other experts say there is a major alternative to both fossil fuels and renewables - the conservation of energy through more efficient vehicles, better constructed homes and office buildings, and better methods for monitoring energy use.
Source: Voice Of America
Port Hedland Iron Ore Shipments Fall In November
Iron ore shipments from Australia's Port Hedland were 13.99 million tones during November, port figures showed on Tuesday, down from 14.71 million in October.
The port authority said China remained the largest destination with shipments of 9.68 million tonnes versus 10.05 million in October.
Port Hedland handles production from mines owned by BHP Billiton and Fortescue Metals Group in the Pilbara region of Western Australia.
Source: Reuters
The port authority said China remained the largest destination with shipments of 9.68 million tonnes versus 10.05 million in October.
Port Hedland handles production from mines owned by BHP Billiton and Fortescue Metals Group in the Pilbara region of Western Australia.
Source: Reuters
Xstrata To Close Ontario Copper and Zinc Mine
Xstrata Copper Canada announced that it will permanently cease operation of its copper and zinc metallurgical plants at the Kidd Metallurgical Site in Timmins on May 1, 2010. The Kidd mine and concentrator will remain in operation.
“We have investigated options to improve the situation and after careful consideration have made this difficult decision to permanently shut down the Kidd zinc and copper plant,”said Claude Ferron, Chief Operating Officer for Xstrata Copper Canada.
Xstrata expects roughly 670 employees will be impacted as a result of this decision. An early retirement incentive will be offered to all eligible employees, unionized employees will be treated in accordance with the collective agreement and where possible, employees will be offered the possibility to work at other Xstrata operations, according to an Xstrata release.
The company will remain a major employer in Timmins, focusing its efforts and investments on the Kidd Mine and the concentrator.
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea.
Source: Northern Life
“We have investigated options to improve the situation and after careful consideration have made this difficult decision to permanently shut down the Kidd zinc and copper plant,”said Claude Ferron, Chief Operating Officer for Xstrata Copper Canada.
Xstrata expects roughly 670 employees will be impacted as a result of this decision. An early retirement incentive will be offered to all eligible employees, unionized employees will be treated in accordance with the collective agreement and where possible, employees will be offered the possibility to work at other Xstrata operations, according to an Xstrata release.
The company will remain a major employer in Timmins, focusing its efforts and investments on the Kidd Mine and the concentrator.
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea.
Source: Northern Life
Monday, December 7, 2009
Sixty Per Cent Of India's Iron Ore Exports From Goa
Goa accounted for 60 per cent of India's iron ore exports and India exported about 46 million tonnes of the commodity during the year 2008, despite its low grade having Fe content ranging between 58 per cent and 62 per cent.
Because of its low grade, the iron ore produced in the 23-odd mines in the state does not have ready market in the country and hence the iron ore is exported to other countries after resorting to beneficiation, minister of state for environment and forests (independent charge) Jairam Ramesh informed the Rajya Sabha in a written reply today.
At present, the minister said, only 23 iron ore mines are operating in the state after obtaining the approval to their renewal proposals. The ministry has, so far, granted environmental clearance to 111 iron ore projects in Goa during the period from September 2006 to 30 November 2009.
He said the environment ministry has, so far, granted 46 forest clearances for mining of iron ore under the Forest (Conservation) Act, 1980 in Goa. However, in respect of remaining 23 mines, the approvals granted earlier have since expired with effect from 27 November 2007, he added.
Mining activity can only be undertaken after obtaining environmental clearance under the Environment (Protection) Act, 1986.
He said the state government has rejected renewal permission to three mines recently. Revocation of none of them has been received till date.
The minister said environmentalists are objecting to mining activity in the state on the two issues - permitting mining within one km area from the boundary of the national park/sanctuary, and granting environmental clearance to a mining lease involving both forest and non-forest areas.
Source: Domain-B
Because of its low grade, the iron ore produced in the 23-odd mines in the state does not have ready market in the country and hence the iron ore is exported to other countries after resorting to beneficiation, minister of state for environment and forests (independent charge) Jairam Ramesh informed the Rajya Sabha in a written reply today.
At present, the minister said, only 23 iron ore mines are operating in the state after obtaining the approval to their renewal proposals. The ministry has, so far, granted environmental clearance to 111 iron ore projects in Goa during the period from September 2006 to 30 November 2009.
He said the environment ministry has, so far, granted 46 forest clearances for mining of iron ore under the Forest (Conservation) Act, 1980 in Goa. However, in respect of remaining 23 mines, the approvals granted earlier have since expired with effect from 27 November 2007, he added.
Mining activity can only be undertaken after obtaining environmental clearance under the Environment (Protection) Act, 1986.
He said the state government has rejected renewal permission to three mines recently. Revocation of none of them has been received till date.
The minister said environmentalists are objecting to mining activity in the state on the two issues - permitting mining within one km area from the boundary of the national park/sanctuary, and granting environmental clearance to a mining lease involving both forest and non-forest areas.
Source: Domain-B
Mirabela May Build New Nickel Smelter
Bloomberg reports that Australian miner Mirabela Nickel Ltd may build a smelter to process nickel ore from its Santa Rita mine in Brazil’s northeastern Bahia state and start underground mining.
The report cited Mr Antonio de Jesus Santana, a technical officer at state owned exploration company Cia. Baiana de Pesquisa Mineral, as saying that the expansion at the USD 600 million open pit mine that Mirabela started operating last month will depend on financing.
CBPM rented the mine site to Mirabela for 20 years and will receive 2.5% sales royalties. Mirabela will be Brazil’s second biggest nickel miner after Votorantim Group, producing about 150,000 tonnes of nickel concentrates in the mine’s first year. The mine will produce 210,000 tonnes a year when its open-pit operation reaches full capacity and may expand further with underground mining. Votorantim will buy half Santa Rita’s output on contract until 2014. MMC Norilsk Nickel, the world’s biggest nickel producer, will buy the
Mr Santana added that “Underground mining would expand Santa Rita’s productive life from the 10 years foreseen with an open pit operation. The underground mine and the smelter projects go hand in hand.”
The report cited Mr Antonio de Jesus Santana, a technical officer at state owned exploration company Cia. Baiana de Pesquisa Mineral, as saying that the expansion at the USD 600 million open pit mine that Mirabela started operating last month will depend on financing.
CBPM rented the mine site to Mirabela for 20 years and will receive 2.5% sales royalties. Mirabela will be Brazil’s second biggest nickel miner after Votorantim Group, producing about 150,000 tonnes of nickel concentrates in the mine’s first year. The mine will produce 210,000 tonnes a year when its open-pit operation reaches full capacity and may expand further with underground mining. Votorantim will buy half Santa Rita’s output on contract until 2014. MMC Norilsk Nickel, the world’s biggest nickel producer, will buy the
Mr Santana added that “Underground mining would expand Santa Rita’s productive life from the 10 years foreseen with an open pit operation. The underground mine and the smelter projects go hand in hand.”
Sunday, December 6, 2009
BHP, Rio Agree Iron Ore JV
BHP Billiton Ltd and Rio Tinto Ltd have agreed on the terms of their proposed $US116 billion ($A125.09 billion) iron ore joint venture in Western Australia, meeting their self-imposed deadline by four hours.
The two resources giants on Saturday signed binding agreements covering all aspects of the proposed joint venture that accounts for all current and future Western Australian iron ore assets and liabilities.
The companies already had an in-principle agreement, and six months ago indicated that December 5 would be the deadline by which to secure a binding deal.
In a statement released at 2010 AEDT, BHP Billiton chief executive Marius Kloppers said: "It is an important milestone towards delivering substantial additional benefits to both sets of shareholders, and to the shareholders of our respective joint venture partners in the Pilbara."
"Signing binding agreements brings us one step closer to unlocking the full production potential of our Pilbara iron ore assets and achieving substantial benefits for all our stakeholders," Rio Tinto's chief executive Tom Albanese said.
The deal has been controversial, with Asian steel mills, major buyers of the iron ore, saying it could give the mining giants too much market power.
Rio Tinto is the world's second biggest iron ore producer and BHP Billiton is No.3.
The miners will have an equal partnership in the joint venture which has been a decade in the making and is expected to deliver production and development synergies of at least $US10 billion ($A10.78 billion) on a net present value basis.
Synergies will flow from combining adjacent mines into single operations, cutting costs, consolidating expansion projects and merging overhead and management activities into a single entity, the companies said.
But the joint venture deal is subject to regulatory approvals and both companies have filed submissions with the European Commission and Australian Competition and Consumer Commission.
If approved, both companies anticipate the joint venture will be completed in the second half of calendar 2010.
Source: Sydney Morning Herald
The two resources giants on Saturday signed binding agreements covering all aspects of the proposed joint venture that accounts for all current and future Western Australian iron ore assets and liabilities.
The companies already had an in-principle agreement, and six months ago indicated that December 5 would be the deadline by which to secure a binding deal.
In a statement released at 2010 AEDT, BHP Billiton chief executive Marius Kloppers said: "It is an important milestone towards delivering substantial additional benefits to both sets of shareholders, and to the shareholders of our respective joint venture partners in the Pilbara."
"Signing binding agreements brings us one step closer to unlocking the full production potential of our Pilbara iron ore assets and achieving substantial benefits for all our stakeholders," Rio Tinto's chief executive Tom Albanese said.
The deal has been controversial, with Asian steel mills, major buyers of the iron ore, saying it could give the mining giants too much market power.
Rio Tinto is the world's second biggest iron ore producer and BHP Billiton is No.3.
The miners will have an equal partnership in the joint venture which has been a decade in the making and is expected to deliver production and development synergies of at least $US10 billion ($A10.78 billion) on a net present value basis.
Synergies will flow from combining adjacent mines into single operations, cutting costs, consolidating expansion projects and merging overhead and management activities into a single entity, the companies said.
But the joint venture deal is subject to regulatory approvals and both companies have filed submissions with the European Commission and Australian Competition and Consumer Commission.
If approved, both companies anticipate the joint venture will be completed in the second half of calendar 2010.
Source: Sydney Morning Herald
JSW Steel To Sell Mozambique Coal Mine
JSW Steel may sell its coal mine in Mozambique to sister company JSW Energy as the mine has become commercially unviable for the steel
producer, a top company executive said. Although the deal size could not be ascertained, a person privy to the development said it could be around Rs 300 crore. JSW Energy, which is in the process of raising fund through a public issue to expand power generation capacity, is currently sourcing thermal coal from JSW Steel under a purchase agreement.
Sajjan Jindal-led JSW Steel had acquired 200 million tonne Mozambique block through its affiliate JSW Natural Resources Mozambique a few years ago hoping to extract coking coal to feed its steel plant at Vijayanagar, Karnataka. But, the initial exploration and drilling activities undertaken by the company in Mozambique has revealed that the block has thermal coal reserves instead. While thermal coal is used in power generation, coking coal goes into steel-making.
“Fortunately or unfortunately, around 80% of the coal is in the form of thermal coal at Mozambique. We will probably get it valued and sell to JSW Energy. The balance 20% of the coking coal will be used by our steel plants,” JSW group managing director Sajjan Jindal said. JSW Steel will soon appoint consultants to get exact valuation of the Mozambique mine, said another person familiar with the development.
The transfer of thermal coal mine will help JSW Energy meet raw material requirement of its existing and proposed power plants. It plans to raise generation capacity from 995 mw currently to 3,140 mw by 2010. Its maiden public issue to raise Rs 2,700 crore will open on December 7 and close on December 9.
“JSW Energy plans to import 5 million tonne of coal in 2010-11 as the power firm looks to expand generating capacity. The company will import 2 million tonne of coal each from South Africa and Indonesia, besides 1 million tonne from Australia,” Mr Jindal said.
Both JSW Steel and JSW Energy are scouting for coal mines in Australia, Indonesia and South Africa to feed raw material requirements of their steel and power businesses, respectively. JSW Steel had earlier said it has earmarked investments of $500 million for acquiring the mines overseas due to unavailability of good quality coal in India. India is expected to produce 500 million tonne of coal this fiscal.
In addition, the coal imports in the current year is expected at close to 50 million tonne due to demand-supply mismatch. This has forced several power companies to look at supply arrangements in the overseas markets.
Source: Economic Times
producer, a top company executive said. Although the deal size could not be ascertained, a person privy to the development said it could be around Rs 300 crore. JSW Energy, which is in the process of raising fund through a public issue to expand power generation capacity, is currently sourcing thermal coal from JSW Steel under a purchase agreement.
Sajjan Jindal-led JSW Steel had acquired 200 million tonne Mozambique block through its affiliate JSW Natural Resources Mozambique a few years ago hoping to extract coking coal to feed its steel plant at Vijayanagar, Karnataka. But, the initial exploration and drilling activities undertaken by the company in Mozambique has revealed that the block has thermal coal reserves instead. While thermal coal is used in power generation, coking coal goes into steel-making.
“Fortunately or unfortunately, around 80% of the coal is in the form of thermal coal at Mozambique. We will probably get it valued and sell to JSW Energy. The balance 20% of the coking coal will be used by our steel plants,” JSW group managing director Sajjan Jindal said. JSW Steel will soon appoint consultants to get exact valuation of the Mozambique mine, said another person familiar with the development.
The transfer of thermal coal mine will help JSW Energy meet raw material requirement of its existing and proposed power plants. It plans to raise generation capacity from 995 mw currently to 3,140 mw by 2010. Its maiden public issue to raise Rs 2,700 crore will open on December 7 and close on December 9.
“JSW Energy plans to import 5 million tonne of coal in 2010-11 as the power firm looks to expand generating capacity. The company will import 2 million tonne of coal each from South Africa and Indonesia, besides 1 million tonne from Australia,” Mr Jindal said.
Both JSW Steel and JSW Energy are scouting for coal mines in Australia, Indonesia and South Africa to feed raw material requirements of their steel and power businesses, respectively. JSW Steel had earlier said it has earmarked investments of $500 million for acquiring the mines overseas due to unavailability of good quality coal in India. India is expected to produce 500 million tonne of coal this fiscal.
In addition, the coal imports in the current year is expected at close to 50 million tonne due to demand-supply mismatch. This has forced several power companies to look at supply arrangements in the overseas markets.
Source: Economic Times
Uganda To Earn $55 Million In Mineral Exports
Uganda expects to earn about $55 million from its mineral exports this year, higher than $52.7 million in 2008, a government official said.
The east African nation’s mining sector is viewed as underexploited with small scale miners mainly involved in gold and cobalt, the leading mineral exports. Earnings from the resources reached a high of $88 million in 2007.
Uganda recently completed mapping 80 percent of the country and the geological data obtained is already spurring increased investor interest in the sector, Joshua Tuhumwire, head of the department of geological survey and mines, told Reuters.
“There is an increase in the number of companies taking up exploration licenses. The number of licenses currently is about 500 from 360 one year ago,” Tuhumwire said in an interview late on Friday.
The lingering impact of the global economic crisis was stifling investments in Uganda’s mining sector, he said.
“Exploration investment funds are raised on stock markets mainly in Toronto, London, Vancouver, New York, Australia and others,” he said. “With the economic downturn… exploration spending has gone down remarkably, and Uganda has been no exception.”
A three-year geophysical survey whose findings were released in July showed Uganda has sizeable deposits of a variety of minerals including phosphates, collumbite tantalite, chromite, diamond, gold, tin and wolfram.
Uganda was a major exporter of copper in the 1960s, from the vast deposits at Kilembe mine on the foothills of the Rwenzori Mountains in the country’s southwestern region.
The subsequent sharp drop in copper prices on the world market caused the mine to be shut and the government has been shopping for private investors to revive it.
Tuhumwire said he hoped a number of current exploration projects by small and medium-sized companies would be successful, helping the drive to attract major firms into the sector, through mergers and acquisitions.
The country’s land laws were frustrating the drive to attract much needed investments into the sector, Tuhumwire added.
“Whereas the Constitution vests land in the people, minerals are vested in the government and it becomes difficult to explore or exploit the minerals when landowners refuse a mineral license holder access to the land,” he said.
Source: Reuters
The east African nation’s mining sector is viewed as underexploited with small scale miners mainly involved in gold and cobalt, the leading mineral exports. Earnings from the resources reached a high of $88 million in 2007.
Uganda recently completed mapping 80 percent of the country and the geological data obtained is already spurring increased investor interest in the sector, Joshua Tuhumwire, head of the department of geological survey and mines, told Reuters.
“There is an increase in the number of companies taking up exploration licenses. The number of licenses currently is about 500 from 360 one year ago,” Tuhumwire said in an interview late on Friday.
The lingering impact of the global economic crisis was stifling investments in Uganda’s mining sector, he said.
“Exploration investment funds are raised on stock markets mainly in Toronto, London, Vancouver, New York, Australia and others,” he said. “With the economic downturn… exploration spending has gone down remarkably, and Uganda has been no exception.”
A three-year geophysical survey whose findings were released in July showed Uganda has sizeable deposits of a variety of minerals including phosphates, collumbite tantalite, chromite, diamond, gold, tin and wolfram.
Uganda was a major exporter of copper in the 1960s, from the vast deposits at Kilembe mine on the foothills of the Rwenzori Mountains in the country’s southwestern region.
The subsequent sharp drop in copper prices on the world market caused the mine to be shut and the government has been shopping for private investors to revive it.
Tuhumwire said he hoped a number of current exploration projects by small and medium-sized companies would be successful, helping the drive to attract major firms into the sector, through mergers and acquisitions.
The country’s land laws were frustrating the drive to attract much needed investments into the sector, Tuhumwire added.
“Whereas the Constitution vests land in the people, minerals are vested in the government and it becomes difficult to explore or exploit the minerals when landowners refuse a mineral license holder access to the land,” he said.
Source: Reuters
MMK Signs Coking Coal Supply Agreement
Russian steel mill Magnitogorsk Iron and Steel Works has announced the signing of a five-year coking coal supply agreement with local coal preparation plants Anzherskaya, Koksovaya, Ziminka and Krasnogorskaya.
According to the agreement, in the 2010 to 2014 period MMK will receive supplies of up to 3.5 million tonnes of high quality coking coal concentrate per year from the plants in question, which will fully meet the needs of the steelmaker. The financial details of the agreement have not been disclosed.
The guaranteed deliveries of quality coking coal will enable MMK to continue the implementation of its measures to improve economic efficiency, also through the reduction of coke consumption in the production of pig iron.
Thus, the inclusion in charges of coal concentrate produced at the abovementioned coal preparation plants is expected to significantly improve the quality of metallurgical coke.
Source: Steel Guru
According to the agreement, in the 2010 to 2014 period MMK will receive supplies of up to 3.5 million tonnes of high quality coking coal concentrate per year from the plants in question, which will fully meet the needs of the steelmaker. The financial details of the agreement have not been disclosed.
The guaranteed deliveries of quality coking coal will enable MMK to continue the implementation of its measures to improve economic efficiency, also through the reduction of coke consumption in the production of pig iron.
Thus, the inclusion in charges of coal concentrate produced at the abovementioned coal preparation plants is expected to significantly improve the quality of metallurgical coke.
Source: Steel Guru
Saturday, December 5, 2009
Iran Considers Buying Ukrainian Coking Coal
The Ministry of Industrial Policy of Ukraine has announced following the meeting of Mr Serhiy Hryschenko Ukraine's deputy minister for industrial policy with Mr Khalil Rahmani MD of FITCO that Iran based Fakoor International Tehran Engineering Company is examining the possibility of purchasing Ukrainian coking coal.
The Ukrainian side noted that cooperation between the countries in this area is possible if FITCO revises its demands in relation to coking coal characteristics, bringing them closer to Ukrainian standards.
In January to November this year, Ukraine registered 5.9% decrease YoY in its coking coal output to 23.4 million tonne. In 2008, Ukraine's output of coking coal decreased by 6.2% YoY to 26.642 million tonne.
Source: Steel Guru
The Ukrainian side noted that cooperation between the countries in this area is possible if FITCO revises its demands in relation to coking coal characteristics, bringing them closer to Ukrainian standards.
In January to November this year, Ukraine registered 5.9% decrease YoY in its coking coal output to 23.4 million tonne. In 2008, Ukraine's output of coking coal decreased by 6.2% YoY to 26.642 million tonne.
Source: Steel Guru
Metorex Recommends Vergenoeg Deal
Shareholders of JSE-listed Metorex would meet on December 21 to vote on the sale of a 55% stake in fluorspar producer Vergenoeg Mining to Spanish company Minerales Y Productos Derivados (Minersa), for $60-million.
The proceeds from the proposed sale would be used to repay debt on its Ruashi copper mine, in the Democratic Republic of Congo.
Metorex recommended that its shareholders approve the deal, saying that independent expert Venmyn had considered the terms of the transaction and was of the opinion that the deal was fair to shareholders.
Minersa already owned a 30% stake in the project, while Metorex had sold a 15% interest in Vergenoeg Mining to a consortium of black investors in July this year.
Source: Mining Weekly
The proceeds from the proposed sale would be used to repay debt on its Ruashi copper mine, in the Democratic Republic of Congo.
Metorex recommended that its shareholders approve the deal, saying that independent expert Venmyn had considered the terms of the transaction and was of the opinion that the deal was fair to shareholders.
Minersa already owned a 30% stake in the project, while Metorex had sold a 15% interest in Vergenoeg Mining to a consortium of black investors in July this year.
Source: Mining Weekly
Chinese Firms Eye Balla Balla Stake
Australian mineral explorer Aurox Resources Ltd is planning to sell a 50 percent stake in its A$1.3 billion ($1.2 billion) Balla Balla magnetite iron ore mine to a Chinese partner to help fund the project.
Hebei Iron & Steel Group, China's second-largest steel mill, and Tianjin-based privately owned RockCheck Steel Group, which had signed sales accords with the Perth-based company, are on the prospective list of financiers, Bloomberg reported, citing Aurox Managing Director Charles Schaus.
Both Hebei Steel and RockCheck could not be reached for their comments.
Schaus said he expects to sew up financing for the project by March next year, and will continue discussions with potential partners next week.
The sale of a 50 percent stake in the project to a Chinese partner would also be in accordance with Australia's foreign investment guidelines, he said.
The company plans to ship 6 million metric tons of magnetite iron ore concentrate a year by 2012 from the project located in Western Australia's Pilbara region. A second-stage expansion of the mine has been planned for A$720 million.
"There is no doubt that iron ore demand from China would continue to grow," Schaus said in Bloomberg's TV interview. "Our feeling is the price will increase in the future and certainly will be rock solid when we come in to the market in 2012."
Aurox plans to pipe output nearly 110 km from its Balla Balla mine site to Port Hedland in northern Western Australia for shipping.
"The project is not valued as a superior resource as the exploring cost of magnetite iron ore is higher than normal iron ore resources," said Hu Kai, an analyst with Umetal Research Institute.
Many iron ore miners are expanding their production capacities, so there might be a chance that supply would exceed demand by 2012, said Hu.
Putting aside the cost factor of the project, it still does make strategic sense for Chinese steel makers as they scout globally to augment raw material resources, he said.
Chinese investors have been enthusiastically snapping up overseas iron ore resources to break the monopoly of the Vale, Rio Tinto and BHP Billiton.
The latest in this process was Chinese steelmaker Wuhan Iron & Steel Group's $400 million investment for a 21.52 percent stake in Brazilian iron ore miner MMX Mineracao e Metalicos SA, followed by Wuhan Steel's $247-million investment into Australian iron ore firm Centrex, and Baosteel's acquisition of a 15-percent stake in Aquila Resources.
SourcE: China Daily
Hebei Iron & Steel Group, China's second-largest steel mill, and Tianjin-based privately owned RockCheck Steel Group, which had signed sales accords with the Perth-based company, are on the prospective list of financiers, Bloomberg reported, citing Aurox Managing Director Charles Schaus.
Both Hebei Steel and RockCheck could not be reached for their comments.
Schaus said he expects to sew up financing for the project by March next year, and will continue discussions with potential partners next week.
The sale of a 50 percent stake in the project to a Chinese partner would also be in accordance with Australia's foreign investment guidelines, he said.
The company plans to ship 6 million metric tons of magnetite iron ore concentrate a year by 2012 from the project located in Western Australia's Pilbara region. A second-stage expansion of the mine has been planned for A$720 million.
"There is no doubt that iron ore demand from China would continue to grow," Schaus said in Bloomberg's TV interview. "Our feeling is the price will increase in the future and certainly will be rock solid when we come in to the market in 2012."
Aurox plans to pipe output nearly 110 km from its Balla Balla mine site to Port Hedland in northern Western Australia for shipping.
"The project is not valued as a superior resource as the exploring cost of magnetite iron ore is higher than normal iron ore resources," said Hu Kai, an analyst with Umetal Research Institute.
Many iron ore miners are expanding their production capacities, so there might be a chance that supply would exceed demand by 2012, said Hu.
Putting aside the cost factor of the project, it still does make strategic sense for Chinese steel makers as they scout globally to augment raw material resources, he said.
Chinese investors have been enthusiastically snapping up overseas iron ore resources to break the monopoly of the Vale, Rio Tinto and BHP Billiton.
The latest in this process was Chinese steelmaker Wuhan Iron & Steel Group's $400 million investment for a 21.52 percent stake in Brazilian iron ore miner MMX Mineracao e Metalicos SA, followed by Wuhan Steel's $247-million investment into Australian iron ore firm Centrex, and Baosteel's acquisition of a 15-percent stake in Aquila Resources.
SourcE: China Daily
Friday, December 4, 2009
JSW Looking At Coal Mines Abroad
Sajjan Jindal-led JSW Group today said it is looking at buying coal mines abroad for feeding its growing steel and power businesses.
"We would be importing coal from Indonesia, South Africa and Australia and acquire coal mines in these countries over a period of time," JSW Group vice-chairman and managing director Sajjan Jindal told reporters here.
The group will import about 6.5 million tonnes (MT) of coal in this fiscal and about 10 MT in the next fiscal to part-meet the input requirement of its steel and power plants.
Of the planned imports, JSW Steel will ship in 4.5 MT in the current fiscal and about 5 MT next fiscal. JSW Energy will import 2 MT in FY'10 and 5 MT in the next financial year.
"Out of JSW Energy's 5 MT, 2 MT would come from Indonesia, another 2 MT from South Africa and one MT from Australia," he added.
JSW Steel needs coking coal to run over 6-MT plant in Karnataka while JSW Energy requires the dry fuel to feed the proposed over 3,000-MW power generation to become operational by the next fiscal.
Giving details about the company's strategy, JSW Group CFO Seshagiri Rao said: "Now we will also be more focused on the backward integration. We are in constant lookout for coal and coking coal resources overseas while remaining committed to volume growth in our businesses."
Source: Business Standard
"We would be importing coal from Indonesia, South Africa and Australia and acquire coal mines in these countries over a period of time," JSW Group vice-chairman and managing director Sajjan Jindal told reporters here.
The group will import about 6.5 million tonnes (MT) of coal in this fiscal and about 10 MT in the next fiscal to part-meet the input requirement of its steel and power plants.
Of the planned imports, JSW Steel will ship in 4.5 MT in the current fiscal and about 5 MT next fiscal. JSW Energy will import 2 MT in FY'10 and 5 MT in the next financial year.
"Out of JSW Energy's 5 MT, 2 MT would come from Indonesia, another 2 MT from South Africa and one MT from Australia," he added.
JSW Steel needs coking coal to run over 6-MT plant in Karnataka while JSW Energy requires the dry fuel to feed the proposed over 3,000-MW power generation to become operational by the next fiscal.
Giving details about the company's strategy, JSW Group CFO Seshagiri Rao said: "Now we will also be more focused on the backward integration. We are in constant lookout for coal and coking coal resources overseas while remaining committed to volume growth in our businesses."
Source: Business Standard
Exxaro To Dispose Of Rosh Pinah Stake
South Africa’s diversified resources group Exxaro is disposing of its 50.04 stake in Rosh Pinah Zinc and lead mine in Namibia, barely two months after Anglo American also announced its divesture from Skorpion Zinc mine.
The two adjacent zinc mines are situated in the sprawling semi arid but mineral- rich south western parts of Namibia.
Just like Anglo American, Exxaro said Tuesday that it is quitting the zinc mining and refining business and is putting under the block its portfolio of zinc assets which comprise Zincor Refinery in Gauteng, a 26 percent stake in Black Mountain Mining (Pty) Ltd, which owns Black Mountain zinc and lead mine and Gamsberg zinc project in Northern Cape. Under the hammer is a 22 percent stake in Chifeng zinc smelter in China. The zinc assets make up 2 percent of the group’s net assets and contribute 10 percent of its sales.
Exxaro said the move to dispose of Rosh Pinah and its entire portfolio of zinc assets is meant to cut overheads and prioritise capital expenditure.
“The latest measures provide a balance between our commodity and project portfolios and our long term growth aspirations. Our ongoing review of the business with particular emphasis on cost and balance sheet structures will ensure that we remain optimally positioned to meet all stakeholder expectations,” said Exxaro CEO Sipho Nkosi. “We believe that the cycle of the zinc metal is picking up and that it’s good time to sell. Anglo American, our partner at Black Mountain and our neighbour in Namibia, is also selling its zinc assets, which may be a very good suite of assets if offered for sale together. It remains to be seen whether that will take place, but it’s definitely an option,” Wim de Klerk, Exxaro financial director said.
Trevor Arran, Exxaro’s head of base metals section refused to put a price on Rosh Pinah but told The Southern Times that Rosh Pinah is a good and viable operation adding that Exxaro’s strategy is ‘just a configuration of assets.’
“Rosh Pinah is a good operation and there are good shareholders and our move is not meant to close the operation but just a change of shareholding,” Arran said.
Exxaro in June last whittled its stake in Rosh Pinah to 50.04 percent selling 43.8 percent to Namibia’s black economic empowerment group PE Minerals, which holds the mineral rights for Rosh Pinah and Jaguar Investments, whose shareholders vary from traditional authorities and individuals including employees. The June 2008 deal resulted in PE Minerals holding an 8 percent interest, Jaguar 38.99 percent shareholding and Employee Empowerment Participation Scheme with a 2.97 stake.
It is then expected that PE Minerals should be gunning for the Exxaro stake in the zinc and lead mine.
Arran said that there is still a lot to be done before the deal is finalised and could not say whether PE Minerals is interested in raising its shareholding in the mine. “PE Minerals and Jaguar have been good partners, well on site in terms of strategy and support but whether they will be interested I cannot comment,” Arran said.
Together with Exxaro’s Zincor refinery in South Africa, Rosh Pinah was part of a one of few integrated zinc mining and refinery operations in the world.
Rosh Pinah produces around 100 000 tonnes of zinc annually. Zinc mined at Rosh Pinah is refined at Zincor in South Africa.
Meanwhile Namibia’s black economic empowerment group PE Minerals is gunning for Exxaro’s 50.04 percent stake in Rosh Pinah zinc and lead mine, which the South African diversified group is disposing as it moves away from the zinc mining business.
The Southern Times can authoritatively reveal that PE Minerals, which already owns a 49 percent stake in Namibia’s second largest mine, Rosh Pinah wants the Exxaro stake to cement its grip on the zinc mining asset.
PE Minerals also owns mineral rights to Rosh Pinah.
The JSE listed Exxaro announced Tuesday that it is disposing all its zinc assets including the Namibian operation, Rosh Pinah. PE Minerals automatically opened negotiation channels with Exxaro.
Coen Wium, a senior official at PE Minerals told The Southern Times that as a shareholder in Rosh Pinah PE Minerals has the first right of refusal in a move which is likely to outflank other interested potential buyers.
“By nature of us being shareholders and holding mineral rights, nothing can happen without us having a say...they (Exxaro) must offer the stake to Namibians and we have the first right to either take it or refuse,” Wium said.
He added that negotiations for the Exxaro stake are being carried out in an open and transparent manner. Wium said that as a going concern Rosh Pinah remains a viable operation.
The mine currently has a 7 year life span but Wium said that with ongoing exploration and continued investment into the mine, the lifespan could be extended to more than 20 years.
Wium also said that Rosh Pinah has a good management team adding that any change in shareholding should not necessitate management shakeup.
But Exxaro’s divesture provides the right opportunity for Namibian investors to break into the largely multinationals dominated mining sector.
Most Namibia investors have been shying away from investing in the mining sector which is capital intensive and dominated by multinational corporations.
“This is an outright opportunity for Namibians and I can tell you we have a handle on this development,” Wium said. This is the second mining operation offered for sale in just three months.
Exxaro and Anglo, which both share equity in Black Mountain and Gamsberg zinc mines in South Africa, are pulling out of zinc business in Namibia.
Anglo is selling its wholly owned Skorpion zinc mine, which is adjacent to Rosh Pinah. The two mines share the small mining town of Rosh Pinah and have been pooling resources to develop the town as a separate entity of the mining business. Skorpion has however attracted the attention of Chinese firm Chinmetals of China, which reports said last month could be interested in the state of the art zinc mine and refinery.
The Namibian government through its Epangelo mining group, could also be interested in the stake.
Source: Southern Times
The two adjacent zinc mines are situated in the sprawling semi arid but mineral- rich south western parts of Namibia.
Just like Anglo American, Exxaro said Tuesday that it is quitting the zinc mining and refining business and is putting under the block its portfolio of zinc assets which comprise Zincor Refinery in Gauteng, a 26 percent stake in Black Mountain Mining (Pty) Ltd, which owns Black Mountain zinc and lead mine and Gamsberg zinc project in Northern Cape. Under the hammer is a 22 percent stake in Chifeng zinc smelter in China. The zinc assets make up 2 percent of the group’s net assets and contribute 10 percent of its sales.
Exxaro said the move to dispose of Rosh Pinah and its entire portfolio of zinc assets is meant to cut overheads and prioritise capital expenditure.
“The latest measures provide a balance between our commodity and project portfolios and our long term growth aspirations. Our ongoing review of the business with particular emphasis on cost and balance sheet structures will ensure that we remain optimally positioned to meet all stakeholder expectations,” said Exxaro CEO Sipho Nkosi. “We believe that the cycle of the zinc metal is picking up and that it’s good time to sell. Anglo American, our partner at Black Mountain and our neighbour in Namibia, is also selling its zinc assets, which may be a very good suite of assets if offered for sale together. It remains to be seen whether that will take place, but it’s definitely an option,” Wim de Klerk, Exxaro financial director said.
Trevor Arran, Exxaro’s head of base metals section refused to put a price on Rosh Pinah but told The Southern Times that Rosh Pinah is a good and viable operation adding that Exxaro’s strategy is ‘just a configuration of assets.’
“Rosh Pinah is a good operation and there are good shareholders and our move is not meant to close the operation but just a change of shareholding,” Arran said.
Exxaro in June last whittled its stake in Rosh Pinah to 50.04 percent selling 43.8 percent to Namibia’s black economic empowerment group PE Minerals, which holds the mineral rights for Rosh Pinah and Jaguar Investments, whose shareholders vary from traditional authorities and individuals including employees. The June 2008 deal resulted in PE Minerals holding an 8 percent interest, Jaguar 38.99 percent shareholding and Employee Empowerment Participation Scheme with a 2.97 stake.
It is then expected that PE Minerals should be gunning for the Exxaro stake in the zinc and lead mine.
Arran said that there is still a lot to be done before the deal is finalised and could not say whether PE Minerals is interested in raising its shareholding in the mine. “PE Minerals and Jaguar have been good partners, well on site in terms of strategy and support but whether they will be interested I cannot comment,” Arran said.
Together with Exxaro’s Zincor refinery in South Africa, Rosh Pinah was part of a one of few integrated zinc mining and refinery operations in the world.
Rosh Pinah produces around 100 000 tonnes of zinc annually. Zinc mined at Rosh Pinah is refined at Zincor in South Africa.
Meanwhile Namibia’s black economic empowerment group PE Minerals is gunning for Exxaro’s 50.04 percent stake in Rosh Pinah zinc and lead mine, which the South African diversified group is disposing as it moves away from the zinc mining business.
The Southern Times can authoritatively reveal that PE Minerals, which already owns a 49 percent stake in Namibia’s second largest mine, Rosh Pinah wants the Exxaro stake to cement its grip on the zinc mining asset.
PE Minerals also owns mineral rights to Rosh Pinah.
The JSE listed Exxaro announced Tuesday that it is disposing all its zinc assets including the Namibian operation, Rosh Pinah. PE Minerals automatically opened negotiation channels with Exxaro.
Coen Wium, a senior official at PE Minerals told The Southern Times that as a shareholder in Rosh Pinah PE Minerals has the first right of refusal in a move which is likely to outflank other interested potential buyers.
“By nature of us being shareholders and holding mineral rights, nothing can happen without us having a say...they (Exxaro) must offer the stake to Namibians and we have the first right to either take it or refuse,” Wium said.
He added that negotiations for the Exxaro stake are being carried out in an open and transparent manner. Wium said that as a going concern Rosh Pinah remains a viable operation.
The mine currently has a 7 year life span but Wium said that with ongoing exploration and continued investment into the mine, the lifespan could be extended to more than 20 years.
Wium also said that Rosh Pinah has a good management team adding that any change in shareholding should not necessitate management shakeup.
But Exxaro’s divesture provides the right opportunity for Namibian investors to break into the largely multinationals dominated mining sector.
Most Namibia investors have been shying away from investing in the mining sector which is capital intensive and dominated by multinational corporations.
“This is an outright opportunity for Namibians and I can tell you we have a handle on this development,” Wium said. This is the second mining operation offered for sale in just three months.
Exxaro and Anglo, which both share equity in Black Mountain and Gamsberg zinc mines in South Africa, are pulling out of zinc business in Namibia.
Anglo is selling its wholly owned Skorpion zinc mine, which is adjacent to Rosh Pinah. The two mines share the small mining town of Rosh Pinah and have been pooling resources to develop the town as a separate entity of the mining business. Skorpion has however attracted the attention of Chinese firm Chinmetals of China, which reports said last month could be interested in the state of the art zinc mine and refinery.
The Namibian government through its Epangelo mining group, could also be interested in the stake.
Source: Southern Times
China Moly Sells Stake In Subsidiary To US Firm
China Molybdenum Co, China's second-biggest molybdenum producer, announced yesterday that it has agreed to sell a 50% stake in wholly-owned subsidiary Luoyang High Tech Molybdenum & Tungsten Materials to Molymet Corp, a U.S.-based company mainly engaged in the production and sale of molybdenum products and related by-products.
The Hong Kong-listed company said in statement that the purchase price will be around 50% of the appraised value of Luoyang High Tech, which will not exceed RMB 500 million.
The buyer will settle the deal by means of a one-off cash payment, according to the statement.
China Molybdenum said that the sale of the stake in Luoyang High Tech will convert the subsidiary into a Sino-U.S. joint venture with a focus on the production and sale of molybdenum metal products. Luoyang High Tech will benefit from Molymet's strengths in technology, marketing and management, which will improve its product quality, market share and management standards.
Luoyang High Tech's business includes the production of molybdenum powder, tungsten powder and related products.
Source: China Knowledge
The Hong Kong-listed company said in statement that the purchase price will be around 50% of the appraised value of Luoyang High Tech, which will not exceed RMB 500 million.
The buyer will settle the deal by means of a one-off cash payment, according to the statement.
China Molybdenum said that the sale of the stake in Luoyang High Tech will convert the subsidiary into a Sino-U.S. joint venture with a focus on the production and sale of molybdenum metal products. Luoyang High Tech will benefit from Molymet's strengths in technology, marketing and management, which will improve its product quality, market share and management standards.
Luoyang High Tech's business includes the production of molybdenum powder, tungsten powder and related products.
Source: China Knowledge
Thursday, December 3, 2009
Queensland To Get First Iron Ore Mine
QUEENSLAND is to get its first iron ore mine courtesy of an innovative $589 million plan by Xstrata to develop an underground mine at its Ernest Henry copper/gold operation near Cloncurry, in the north-west of the state.
Copper/gold production from the underground operation will be less than half the current rate from the soon-to-be-exhausted open-cut mining operation. But rather than ending in the next few years, output will now be extended to at least 2024 with the help of a new revenue stream from magnetite, a low-grade iron ore mineral.
Mining iron ore as a secondary revenue stream to copper and gold is a novelty in Australia, although the idea has been studied on and off at the biggest of Australia's so-called iron-oxide copper/gold deposits, BHP Billiton's Olympic Dam mine in South Australia.
The go-ahead by Swiss-based Xstrata for the underground development was viewed by several junior mining companies in the Cloncurry/Mount Isa region as a tactical ploy to extract the best deal on copper/gold ore supplies they own, which could keep the Ernest Henry mill full once the open-cut reserves are exhausted, without the need to bother with magnetite.
Either way, extending the life of Ernest Henry is vital to the continued supply of copper concentrates to Xstrata's copper smelter at Mount Isa and, in turn, its copper refinery in Townsville.
The new-look Ernest Henry project is based on an underground ore reserve of 72 million tonnes at a grade of 1 per cent copper, 0.5 grams of gold a tonne and 22 per cent magnetite.
Xstrata is forecasting annual production of 50,000 tonnes of copper and 70,000 ounces of gold (in concentrates) when the underground mine takes over.
Magnetite production was put at 1.2 million tonnes a year for export to Asia, making it Queensland's first iron ore producer.
Construction of the underground mine will start in the first half of next year, with first production in late 2011 and full-scale operation from early 2013.
Source: Sydney Morning Herald
Copper/gold production from the underground operation will be less than half the current rate from the soon-to-be-exhausted open-cut mining operation. But rather than ending in the next few years, output will now be extended to at least 2024 with the help of a new revenue stream from magnetite, a low-grade iron ore mineral.
Mining iron ore as a secondary revenue stream to copper and gold is a novelty in Australia, although the idea has been studied on and off at the biggest of Australia's so-called iron-oxide copper/gold deposits, BHP Billiton's Olympic Dam mine in South Australia.
The go-ahead by Swiss-based Xstrata for the underground development was viewed by several junior mining companies in the Cloncurry/Mount Isa region as a tactical ploy to extract the best deal on copper/gold ore supplies they own, which could keep the Ernest Henry mill full once the open-cut reserves are exhausted, without the need to bother with magnetite.
Either way, extending the life of Ernest Henry is vital to the continued supply of copper concentrates to Xstrata's copper smelter at Mount Isa and, in turn, its copper refinery in Townsville.
The new-look Ernest Henry project is based on an underground ore reserve of 72 million tonnes at a grade of 1 per cent copper, 0.5 grams of gold a tonne and 22 per cent magnetite.
Xstrata is forecasting annual production of 50,000 tonnes of copper and 70,000 ounces of gold (in concentrates) when the underground mine takes over.
Magnetite production was put at 1.2 million tonnes a year for export to Asia, making it Queensland's first iron ore producer.
Construction of the underground mine will start in the first half of next year, with first production in late 2011 and full-scale operation from early 2013.
Source: Sydney Morning Herald
India's Iron Ore Exports Double In A Year
India's iron ore exports in October more than doubled to 9.325 million tonnes from 4.26 million tonnes a year ago, a release from the Federation of Indian Mineral Industries showed on Thursday.
Iron ore exports in the first seven months of the current financial year to October were at 53.225 million tonnes, up from 44.06 million tonnes in the same period a year ago, it showed.
Source: Reuters
Iron ore exports in the first seven months of the current financial year to October were at 53.225 million tonnes, up from 44.06 million tonnes in the same period a year ago, it showed.
Source: Reuters
Philippine Mining Development Chooses Cebu Limestone Partner
State-run Philippine Mining Development Corp. has chosen a unit of Century Peak Metal Holdings Corp. as its operating partner for its limestone property in Cebu.
Century Peak Corp. has received a notice of award from the state-run firm, Century Peak Metal told the Philippine Stock Exchange on Wednesday. This allows Century Peak to undertake the exploration, development, and mining operations of the 4,795-hectare Pinamungahan limestone property.
At present, Century Peak holds a mineral production sharing agreement and an exploration permit for nickel ore in Dinagat province.
It also has a pending exploration permit in Iwahig, Puerto Princesa, which covers 5,135 hectares
Source: ABS-CBN
Century Peak Corp. has received a notice of award from the state-run firm, Century Peak Metal told the Philippine Stock Exchange on Wednesday. This allows Century Peak to undertake the exploration, development, and mining operations of the 4,795-hectare Pinamungahan limestone property.
At present, Century Peak holds a mineral production sharing agreement and an exploration permit for nickel ore in Dinagat province.
It also has a pending exploration permit in Iwahig, Puerto Princesa, which covers 5,135 hectares
Source: ABS-CBN
Utah Miner Buys Chinese Coking Plant
America West Resources Inc., a Salt Lake City-based coal company, said Wednesday it has signed a binding letter of intent to purchase a coking coal facility in China.
After the deal is finalized, America West expects to invest $70 million into the Luxin coal plant in Shanxi Province in northeastern China.
In return, company chief executive Dan Baker said America West "effectively diversifies our business, establishes a critical gateway to China and materially strengthens our financial profile. As such, we believe we are much better positioned to pursue a listing on a national exchange on an accelerated timetable."
The coking plant has been owned by the Shanxi Jiexiu Luxin Coal Gasification Co., which also has nearby coal mines that supply metallurgical coal used to produce steel.
Baker said the coking plant also generates electricity using synthetic gas produced through coal gasification, a technology important to efforts to capture carbon emissions after combustion.
Under terms of the agreement, America West will spend $40 million to acquire a 70 percent interest in an offshore company through a 30-year "Contractual Joint Venture," an approved form of foreign investment in China. Shanxi Jiexiu's current management will retain the remaining 30 percent.
America West also will contribute $30 million in "working and expansion capital" to the joint venture, which will have contractual rights to Shanxi Jiexiu's estimated
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coal reserves of 100 million tons. The Chinese company will still manage the plant, with America West's oversight.
While Chinese coal will supply the plant's short-term needs, Baker noted that America West has purchased metallurgical coal reserves in the Book Cliffs field in Carbon County. That Utah coal, still in the early stages of development, could be exported to Luxin when Chinese sources are used up.
"This acquisition is ideally aligned with our company's long-term metallurgical coal-export strategy," he said.
For the first six months of 2009, Baker said Luxin reported revenues of $60 million and earnings of $9 million.
Last year, the Luxin had earnings of $22 million on revenues of $140 million.
Financial data will be verified before the transaction closes, he added.
America West also operates the Horizon mine north of Price. Its coal is burned in power plants.
Source: Salt Lake Tribune
After the deal is finalized, America West expects to invest $70 million into the Luxin coal plant in Shanxi Province in northeastern China.
In return, company chief executive Dan Baker said America West "effectively diversifies our business, establishes a critical gateway to China and materially strengthens our financial profile. As such, we believe we are much better positioned to pursue a listing on a national exchange on an accelerated timetable."
The coking plant has been owned by the Shanxi Jiexiu Luxin Coal Gasification Co., which also has nearby coal mines that supply metallurgical coal used to produce steel.
Baker said the coking plant also generates electricity using synthetic gas produced through coal gasification, a technology important to efforts to capture carbon emissions after combustion.
Under terms of the agreement, America West will spend $40 million to acquire a 70 percent interest in an offshore company through a 30-year "Contractual Joint Venture," an approved form of foreign investment in China. Shanxi Jiexiu's current management will retain the remaining 30 percent.
America West also will contribute $30 million in "working and expansion capital" to the joint venture, which will have contractual rights to Shanxi Jiexiu's estimated
--------------------------------------------------------------------------------
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coal reserves of 100 million tons. The Chinese company will still manage the plant, with America West's oversight.
While Chinese coal will supply the plant's short-term needs, Baker noted that America West has purchased metallurgical coal reserves in the Book Cliffs field in Carbon County. That Utah coal, still in the early stages of development, could be exported to Luxin when Chinese sources are used up.
"This acquisition is ideally aligned with our company's long-term metallurgical coal-export strategy," he said.
For the first six months of 2009, Baker said Luxin reported revenues of $60 million and earnings of $9 million.
Last year, the Luxin had earnings of $22 million on revenues of $140 million.
Financial data will be verified before the transaction closes, he added.
America West also operates the Horizon mine north of Price. Its coal is burned in power plants.
Source: Salt Lake Tribune
Wednesday, December 2, 2009
Zijin Mining Sets Its Eyes On Indophil
Chinese miner Zijin Mining Group has made a $498 million takeover offer for Indophil Resources NL of Australia, a deal that would significantly bolster its gold and copper reserves and support raw material requirements for its 200,000 tons of copper smelting project. Additionally Zijin would also get a stake in Southeast Asia' largest untapped copper and gold deposit at Tampakan in the southern Philippines.
Fujian-based Zijin Mining would make a conditional cash off-market takeover bid for all of the issued shares in Indophil for A$1.28 ($1.18) per share, an 18 percent premium over the last closing price, said a statement issued yesterday by the Melbourne-based company.
"The acquisition will help Zijin to increase its gold and copper metal reserves by 2.06 million tons and 816,500 tons, up 21.4 percent and 11.6 percent respectively, " said Liu Zhuoping, an analyst with Dongguan Securities. "It will narrow the gap with China's largest copper producer Jiangxi Copper and also consolidate Zijin's top slot in gold reserves."
If the deal gets approved, Zijin's copper reserves would reach 11 million tons, close to that of Jiangxi Copper's 12 million tons.
By November this year, Zijin had the largest gold reserves, of around 7 million tons, followed by Zhongjin Gold Gorp with 3.2 million tons.
Indophil has a 34.23 percent stake in the $5.2 billion Tampakan copper and gold project, controlled by Xstrata.
The Switzerland-based mining group yesterday said it has agreed to sell its 19.9 percent stake in Indophil to Zijin for $1.28 a share.
The Tampakan deposit holds 13.5 million tons of copper and 15.8 million ounces of gold. It is currently undergoing the last stage of feasibility studies and expects to start production by 2016. Tampakan is expected to yield 340,000 tons of copper and 350,000 ounces of gold annually for the next 20 years.
The deal still needs regulatory approvals from both the Chinese and Australian governments.
The takeover comes at a time when metal prices have rallied globally as the dollar weakened.
Domestic copper prices soared past 40,000 yuan ($5,860) per ton in April and hovers at over 50,000 yuan per ton now.
Zijin's resources strategy recently shifted from domestic acquisitions to overseas projects. Since then it has made several overseas investments in multi-metal projects in countries like Tajikistan, Myanmar, Vietnam, Russia and Canada, said Liu.
"The company will continue to diversify itself into a multi-metal producer," he said.
Zijin Vice-Chairman Lan Fusheng had in October said the company spent $300 million in the past five years for eight overseas projects.
Source: China Daily
Fujian-based Zijin Mining would make a conditional cash off-market takeover bid for all of the issued shares in Indophil for A$1.28 ($1.18) per share, an 18 percent premium over the last closing price, said a statement issued yesterday by the Melbourne-based company.
"The acquisition will help Zijin to increase its gold and copper metal reserves by 2.06 million tons and 816,500 tons, up 21.4 percent and 11.6 percent respectively, " said Liu Zhuoping, an analyst with Dongguan Securities. "It will narrow the gap with China's largest copper producer Jiangxi Copper and also consolidate Zijin's top slot in gold reserves."
If the deal gets approved, Zijin's copper reserves would reach 11 million tons, close to that of Jiangxi Copper's 12 million tons.
By November this year, Zijin had the largest gold reserves, of around 7 million tons, followed by Zhongjin Gold Gorp with 3.2 million tons.
Indophil has a 34.23 percent stake in the $5.2 billion Tampakan copper and gold project, controlled by Xstrata.
The Switzerland-based mining group yesterday said it has agreed to sell its 19.9 percent stake in Indophil to Zijin for $1.28 a share.
The Tampakan deposit holds 13.5 million tons of copper and 15.8 million ounces of gold. It is currently undergoing the last stage of feasibility studies and expects to start production by 2016. Tampakan is expected to yield 340,000 tons of copper and 350,000 ounces of gold annually for the next 20 years.
The deal still needs regulatory approvals from both the Chinese and Australian governments.
The takeover comes at a time when metal prices have rallied globally as the dollar weakened.
Domestic copper prices soared past 40,000 yuan ($5,860) per ton in April and hovers at over 50,000 yuan per ton now.
Zijin's resources strategy recently shifted from domestic acquisitions to overseas projects. Since then it has made several overseas investments in multi-metal projects in countries like Tajikistan, Myanmar, Vietnam, Russia and Canada, said Liu.
"The company will continue to diversify itself into a multi-metal producer," he said.
Zijin Vice-Chairman Lan Fusheng had in October said the company spent $300 million in the past five years for eight overseas projects.
Source: China Daily
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