The China Iron and Steel Association (CISA) has denied rumours that there would be a rise in steel export taxes as soon as this weekend. Some media reports, which speculated that export taxes on more than 80 types of steel might be raised by 5 to 10 percent as of June 1, had "disordered the industry's normal production and exports," the CISA said in a statement on its website. "The rumour went against the stability of the economy and the ongoing quake-relief work," said the CISA, which stressed that the stability of export policies was key to a steady steel market.
An official at CISA's office declined to elaborate on the "disorder" when contacted by telephone by Xinhua. However, the Shanghai Securities News reported that some exporters had delivered goods to bonded areas at coastal ports after hearing the rumours, to avoid anticipated higher costs. China has been increasing steel export taxes and cutting rebates since 2005 as part of its efforts to curb smokestack industries and cool heated fixed-asset investment. In the most recent move, the country raised the export tax rate on steel billets and ingots to 25% from 15% on 1 January.
A slowdown in Chinese steel exports has tightened global supplies and driven up world prices of steel, as well as those of raw materials for the steel industry such as coal, coke and iron ore. Domestic prices were driven up in turn, according to the statement.
In the first four months of this year, China produced 169.8 million tons of crude steel, up 9.1% up year on year. But that growth rate was 12.1 percentage points lower than a year earlier, according to the National Bureau of Statistics. The slower rate of increase, in turn, accounted for a decline of 3.5 percentage points in the growth of global steel production year on year, said the CISA.
During much of the same period when Chinese steel output was growing more slowly, world and domestic prices rose. The CRU Steel Price Index, an indicator of world steel prices, surged 38.1% year on year to a record 221.9 points at the end of March, while China's domestic steel price index soared 29.61% to 142.31 points, according to CISA deputy secretary-general Qi Xiangdong.
China's steel industry should adopt a strategy of focusing on domestic demand and keeping an appropriate amount of exports, which would help rein in international steel and iron ore price hikes and abate domestic inflationary pressure, according to CISA.
China's largest steel provider, Baoshan Iron and Steel Co., Ltd. (Baosteel), has informally told dealers it would raise prices of steel products in the third quarter.The price of steel plate heat commercial (SPHC) would rise by 200 yuan (about 28 U.S. dollars) a ton from 5,142 yuan in May and that of 1.0 steel plate cold commercial (SPCC) would rise 300 yuan from 5,996 yuan.
The hikes were inevitable as global prices had been running at a higher level than domestic ones, said Mysteel Research Institute (MRI) analyst Xu Xiangchun. He said Baosteel was adopting prudent price hikes, considering a sharp increase might further fuel inflationary pressure, burden steel-consuming enterprises and affect the post-quake reconstruction.
Source: Xinhua
Saturday, May 31, 2008
Australian Coking Coal Terminal Facing Three-Month Delay
The completion date for a much-needed expansion of Australia's biggest coking coal export terminal has been delayed by three months.
The owner of the Dalrymple Bay Coal Terminal, Babcock & Brown Infrastructure, confirmed fears that bad weather, which swamped Mackay in March, had pushed back the final completion date for Phase 2/3 of the port's expansion to an annual capacity rate of 85 million tonnes, and would not be finished until the end of March next year.
The delay has been approved by both BBI and the eight coalminers (including BHP Billiton, Rio Tinto and Xstrata) which use the port with all parties declining an opportunity to make up for the missed time and finalise construction by the previously scheduled deadline of December. BBI is spending $1.2 billion to expand DBCT as capacity constraints hamper the miners' ability to fully cash in on record prices and rampant demand for Australian coal. It comes as BBI and the port users mull a further expansion to 100 million tonnes per year.
BBI expects the Phase 2/3 expansion to be 45 per cent complete by year's end with the port to have an annual output rate of 72mtpa by that stage. The Phase 2/3 expansion includes the addition of a fourth shipping berth at the terminal along with extra stockpile machines and a third out-loading system to the expanded wharf.
DBCT acting chief executive Eric Kalatchew said that, based on preliminary estimates, an additional $40 million might have been enough to ensure that the Phase 2/3 expansion was finalised for the end of this year. However, he added that all stakeholders, including the coalminers, decided it was not worth the risk in spending the extra money. Despite the delay for the completion date, Mr Kalatchew said the project remained on budget and BBI security holders would still receive a 15c dividend per security for 2008. "The users said there was too much risk involved," Mr Kalatchew said. "We could do the work and spend the extra money and still not get the additional through-put through the port."The additional cost was an estimated $40 million but, looking at it further, it was dependent on additional equipment to run two different work fronts. We would have needed specialty equipment and the cost was likely to rise further. And it was going to be on a best endeavours type commitment."
Part of the problem facing DBCT was that it might not have been able to convince the Queensland regulator of the added value as an asset from the extra expense incurred. The regulator is the key to fixing the fees, which DBCT can charge port users. Also, there was no guarantee from the coalminers that they would be able to fill the extra capacity. BBI expects to lose about $1 million a month in cash flows because of the delay. But chief financial officer Jonathon Sellar said that represented less than 1 per cent of expected cash flows for this year.
Source: The Australian
The owner of the Dalrymple Bay Coal Terminal, Babcock & Brown Infrastructure, confirmed fears that bad weather, which swamped Mackay in March, had pushed back the final completion date for Phase 2/3 of the port's expansion to an annual capacity rate of 85 million tonnes, and would not be finished until the end of March next year.
The delay has been approved by both BBI and the eight coalminers (including BHP Billiton, Rio Tinto and Xstrata) which use the port with all parties declining an opportunity to make up for the missed time and finalise construction by the previously scheduled deadline of December. BBI is spending $1.2 billion to expand DBCT as capacity constraints hamper the miners' ability to fully cash in on record prices and rampant demand for Australian coal. It comes as BBI and the port users mull a further expansion to 100 million tonnes per year.
BBI expects the Phase 2/3 expansion to be 45 per cent complete by year's end with the port to have an annual output rate of 72mtpa by that stage. The Phase 2/3 expansion includes the addition of a fourth shipping berth at the terminal along with extra stockpile machines and a third out-loading system to the expanded wharf.
DBCT acting chief executive Eric Kalatchew said that, based on preliminary estimates, an additional $40 million might have been enough to ensure that the Phase 2/3 expansion was finalised for the end of this year. However, he added that all stakeholders, including the coalminers, decided it was not worth the risk in spending the extra money. Despite the delay for the completion date, Mr Kalatchew said the project remained on budget and BBI security holders would still receive a 15c dividend per security for 2008. "The users said there was too much risk involved," Mr Kalatchew said. "We could do the work and spend the extra money and still not get the additional through-put through the port."The additional cost was an estimated $40 million but, looking at it further, it was dependent on additional equipment to run two different work fronts. We would have needed specialty equipment and the cost was likely to rise further. And it was going to be on a best endeavours type commitment."
Part of the problem facing DBCT was that it might not have been able to convince the Queensland regulator of the added value as an asset from the extra expense incurred. The regulator is the key to fixing the fees, which DBCT can charge port users. Also, there was no guarantee from the coalminers that they would be able to fill the extra capacity. BBI expects to lose about $1 million a month in cash flows because of the delay. But chief financial officer Jonathon Sellar said that represented less than 1 per cent of expected cash flows for this year.
Source: The Australian
Sinosteel Removes Condition In Midwest Takeover
Sinosteel Corp, China's second-biggest iron ore trader, has removed a condition from its $1.36 billion takeover offer for Australian ore producer Midwest Corp.
Sinosteel is offering Midwest shareholders $6.38 a share, removing a condition of a minimum of 50% acceptances to boost its offer from $5.60. The Beijing-based company increased its stake in Midwest to 20.58%.
The bidder is battling Midwest's neighbouring iron ore rival Murchison Metals for control of its Weld Range deposit in Western Australia. Chinese companies are snapping up mining assets in Australia to ensure supplies for the world's fastest-growing economy.
Harbinger Capital Partners, a US-based hedge fund, has, boosted its stake in Midwest to 9.11%.
Harbinger is also the largest shareholder in Murchison, with a 19.98% stake.
Source: The Age
Sinosteel is offering Midwest shareholders $6.38 a share, removing a condition of a minimum of 50% acceptances to boost its offer from $5.60. The Beijing-based company increased its stake in Midwest to 20.58%.
The bidder is battling Midwest's neighbouring iron ore rival Murchison Metals for control of its Weld Range deposit in Western Australia. Chinese companies are snapping up mining assets in Australia to ensure supplies for the world's fastest-growing economy.
Harbinger Capital Partners, a US-based hedge fund, has, boosted its stake in Midwest to 9.11%.
Harbinger is also the largest shareholder in Murchison, with a 19.98% stake.
Source: The Age
Australians Seek Iron Ore Mining Licence In Thailand
An Australian mining company is seeking an exploration licence for iron ore in Thailand, according to Deputy Prime Minister and Industry Minister Suwit Khunkitti.
Navakun Mining Co Ltd, a 100%- owned subsidiary of Oxiana Limited, a gold and copper mining company in Australia, has submitted a special prospecting licence application to explore iron ore in Rayong, Chon Buri, Chachoengsao and Chanthaburi provinces.
According to Pasavorn Boonyathada, regional manager of Oxiana Limited, the company is now operating gold and copper mines in Laos and also has an exploration project in Cambodia. The licence in Thailand will require approval from the Department of Primary Industries and Mines and the minister.
Peter Abert, executive general manager for Asia of Oxiana Limited, said the company would spend around US$2-5 million over two years if it was granted the licence.
''At this stage, we don't know if there is any iron ore in the exploration sites. However, if we find what we want, we will seek the mining licence,'' he said.
He added that if the exploration was a success, the ore would go to serve both domestic and export markets, especially China, which is importing a large amount of iron ore from Australia to serve its steel industry.
Mr Suwit believes Oxiana's exploration will help develop the steel industry in Thailand by attracting more steelmakers to invest in upstream steel smelters in the country.
Currently, steelmakers need to import raw materials, such as billet, scrap and slab from smelter plants overseas to make steel products in Thailand.
The new investment project has also proved that political tensions do not affect Thailand's investment climate.
''Some new investors may hold back their investment plans in face of the current political woes, but I don't think the existing ones view them as a big problem,'' he said. ''However, I think the oil crisis is the main concern to all investors, causing them to put on hold their investment plans.''
Source: Bangkok Post
Navakun Mining Co Ltd, a 100%- owned subsidiary of Oxiana Limited, a gold and copper mining company in Australia, has submitted a special prospecting licence application to explore iron ore in Rayong, Chon Buri, Chachoengsao and Chanthaburi provinces.
According to Pasavorn Boonyathada, regional manager of Oxiana Limited, the company is now operating gold and copper mines in Laos and also has an exploration project in Cambodia. The licence in Thailand will require approval from the Department of Primary Industries and Mines and the minister.
Peter Abert, executive general manager for Asia of Oxiana Limited, said the company would spend around US$2-5 million over two years if it was granted the licence.
''At this stage, we don't know if there is any iron ore in the exploration sites. However, if we find what we want, we will seek the mining licence,'' he said.
He added that if the exploration was a success, the ore would go to serve both domestic and export markets, especially China, which is importing a large amount of iron ore from Australia to serve its steel industry.
Mr Suwit believes Oxiana's exploration will help develop the steel industry in Thailand by attracting more steelmakers to invest in upstream steel smelters in the country.
Currently, steelmakers need to import raw materials, such as billet, scrap and slab from smelter plants overseas to make steel products in Thailand.
The new investment project has also proved that political tensions do not affect Thailand's investment climate.
''Some new investors may hold back their investment plans in face of the current political woes, but I don't think the existing ones view them as a big problem,'' he said. ''However, I think the oil crisis is the main concern to all investors, causing them to put on hold their investment plans.''
Source: Bangkok Post
Friday, May 30, 2008
Fears Of Slow-down In Chinese Magneium Industry
Recent hikes in the price of Chinese magnesium metal means that the ex-works price has broken through RMB36,000/mt (USD5,295/mt) and producers expect the price to break through RMB37,000/mt (USD5,441/mt) in the near future.
As a result there are fears of a slow-down in the magnesium metal industry and producers have recently reported fewer enquiries due to the high price.
Source: www.ferroalloys.com
As a result there are fears of a slow-down in the magnesium metal industry and producers have recently reported fewer enquiries due to the high price.
Source: www.ferroalloys.com
China's Silicon Manganese Prices In Upward Trend
Latest quoted prices in China for silicon manganese is around RMB9,100-9,200/mt in the Guizhou and Yunan areas. Supplies from the Sichuan areas are affected by destruction in the recent earthquake. Market insiders believe that this rising trend mainly is a result of a rising domestic manganese ore price and transport pressure.
As a result some manganese alloys producers are purchasing domestic manganese ore due to the high price of imported ore. Consequentially domestic ore supply is tight and with an increasing price.
Source: www.ferroalloys.com
As a result some manganese alloys producers are purchasing domestic manganese ore due to the high price of imported ore. Consequentially domestic ore supply is tight and with an increasing price.
Source: www.ferroalloys.com
Mincor In Potential New Nickel Discovery
Australian nickel miner Mincor Resources NL has continued its run of exploration success in the Kambalda region. This week it unveiled a potential new discovery at its Mariners Nickel Mine, as well as significant southwards extensions to the recently discovered NO9 ore body at Mariners.
The most significant of the new results is a multiple nickel intersection in drill-hole MRDH329, including 18.97 metres at 3.20% nickel (true width 5.0 metres), which could represent the upper portion of a major new discovery below the NO9 ore body.
Mincor's Managing Director, Mr David Moore, said the latest results confirmed the NO9 discovery at the Mariners Mine as one of the Company's most significant exploration successes to date.
"Importantly, the mineralisation remains open down-plunge and to the north and drilling is continuing around the clock with two underground diamond drilling rigs," Mr Moore said. "This is another excellent demonstration of the strength of Kambalda's nickel endowment. Our 20-year production target is based on our proven capacity to discover nickel by drilling out these immensely prolific ore systems and Mariners is a prime example. We see similar potential at all of the 12 ore systems we own."
Mariners is one of Mincor's most important nickel operations, producing 1,410 tonnes of nickel in ore for the March Quarter at an average grade of 2.81% nickel. The operation was developed as the Company's fourth nickel mine during 2004, with first production achieved in early 2005.
In addition to the drilling currently underway at Mariners, drilling has re-commenced at the Wannaway Mine, testing new targets beneath the NO2 ore body; and the innovative contact-parallel drilling program at the Otter Juan Mine continues. Mincor said that underground exploration drilling was also underway at the Burnett Shoot at North Miitel and that surface drilling continued at the feasibility-level Durkin Deeps Project.
"In addition, we are preparing to drill the first of our major Ultra-sized Nickel Ore Body targets at North Kambalda, and we stand ready to drill on our newly-acquired Bluebush Line tenements once we have overcome the regulatory delays relating to environmental clearing permits," Mr Moore said.
Source: Mineweb
The most significant of the new results is a multiple nickel intersection in drill-hole MRDH329, including 18.97 metres at 3.20% nickel (true width 5.0 metres), which could represent the upper portion of a major new discovery below the NO9 ore body.
Mincor's Managing Director, Mr David Moore, said the latest results confirmed the NO9 discovery at the Mariners Mine as one of the Company's most significant exploration successes to date.
"Importantly, the mineralisation remains open down-plunge and to the north and drilling is continuing around the clock with two underground diamond drilling rigs," Mr Moore said. "This is another excellent demonstration of the strength of Kambalda's nickel endowment. Our 20-year production target is based on our proven capacity to discover nickel by drilling out these immensely prolific ore systems and Mariners is a prime example. We see similar potential at all of the 12 ore systems we own."
Mariners is one of Mincor's most important nickel operations, producing 1,410 tonnes of nickel in ore for the March Quarter at an average grade of 2.81% nickel. The operation was developed as the Company's fourth nickel mine during 2004, with first production achieved in early 2005.
In addition to the drilling currently underway at Mariners, drilling has re-commenced at the Wannaway Mine, testing new targets beneath the NO2 ore body; and the innovative contact-parallel drilling program at the Otter Juan Mine continues. Mincor said that underground exploration drilling was also underway at the Burnett Shoot at North Miitel and that surface drilling continued at the feasibility-level Durkin Deeps Project.
"In addition, we are preparing to drill the first of our major Ultra-sized Nickel Ore Body targets at North Kambalda, and we stand ready to drill on our newly-acquired Bluebush Line tenements once we have overcome the regulatory delays relating to environmental clearing permits," Mr Moore said.
Source: Mineweb
Iridium Enquiries Slow As Price Soars
Supplier sources in Japan, South Korea and China acknowledge that buyer inquiries about summer shipments of indium has slowed dramatically now that May market prices averaged $665/kilogram in North America. That compares with a cyclical low of $430 in March and the highest since $835 in June 2007, which also triggered a slowdown in purchasing.
Prices have soared lately after power shortages forced several Chinese producers to suspend spot exports in April. Platts Metals Week, a subscription newsletter, says concerns spread in April and May that the world soon could run short of indium and prices would hit $1,000/kg. Indium is produced mainly from residues generated during zinc ore processing but is also found in iron, lead, and copper ores.
The U.S. only uses about 100 metric tons/year but global demand is strong for the minor metal since it is processed into indium-tin-oxide thin films, a conductive coating for both liquid crystal and plasma displays. Other end uses include solders and compounds used to make electrical components and semiconductors. The U.S. Geological Survey report on indium says photovoltaic applications could become another large market opportunity for indium. Copper-indium-gallium-diselenide thin films for solar cells require approximately 50 metric tons of the indium metal to produce a gigawatt of solar power.
Source: Purchasing.com
Prices have soared lately after power shortages forced several Chinese producers to suspend spot exports in April. Platts Metals Week, a subscription newsletter, says concerns spread in April and May that the world soon could run short of indium and prices would hit $1,000/kg. Indium is produced mainly from residues generated during zinc ore processing but is also found in iron, lead, and copper ores.
The U.S. only uses about 100 metric tons/year but global demand is strong for the minor metal since it is processed into indium-tin-oxide thin films, a conductive coating for both liquid crystal and plasma displays. Other end uses include solders and compounds used to make electrical components and semiconductors. The U.S. Geological Survey report on indium says photovoltaic applications could become another large market opportunity for indium. Copper-indium-gallium-diselenide thin films for solar cells require approximately 50 metric tons of the indium metal to produce a gigawatt of solar power.
Source: Purchasing.com
Rio Tinto Reports Interest In Guinea Development
Rio Tinto Group, the second-largest iron-ore producer, said parties from China and Japan are among those interested in helping develop a project in the West African nation of Guinea.
The partners may provide capital or expertise in rail or port construction for the Simandou site, Sam Walsh, chief executive officer of Rio's iron-ore unit, said today in a presentation in London.
``It is early days in terms of discussions but there are a lot of visitors' talking to our team about what they can add to the project”, Walsh said. Any investment would be a minority stake as Rio didn't want to ``give the project away,'' he said.
Simandou will add to production from Rio's Pilbara mines in Australia as it seeks to triple output to more than 600 million metric tons and benefit from record prices for the steelmaking raw material. The project will need a 750-kilometrr (466-mile) rail line to link the mine with a new port facility, Walsh said.
Chief Executive Officer Tom Albanese said today the project contains resources of 2.25 billion tons of iron ore and is the world's ``top undeveloped'' deposit. It will produce about 70 million tons of ore a year from 2013, possibly rising to 170 million tons, Albanese said.
Rio owns 95 percent of the project and the World Bank's International Finance Corp. 5 percent, Walsh said. Guinea government has the right to take 20 percent if approval for the project, expected by end-2009, is confirmed, he said.
Walsh said it was too early to update the $6 billion cost estimate for the project made in April last year.
Source: Bloomberg
The partners may provide capital or expertise in rail or port construction for the Simandou site, Sam Walsh, chief executive officer of Rio's iron-ore unit, said today in a presentation in London.
``It is early days in terms of discussions but there are a lot of visitors' talking to our team about what they can add to the project”, Walsh said. Any investment would be a minority stake as Rio didn't want to ``give the project away,'' he said.
Simandou will add to production from Rio's Pilbara mines in Australia as it seeks to triple output to more than 600 million metric tons and benefit from record prices for the steelmaking raw material. The project will need a 750-kilometrr (466-mile) rail line to link the mine with a new port facility, Walsh said.
Chief Executive Officer Tom Albanese said today the project contains resources of 2.25 billion tons of iron ore and is the world's ``top undeveloped'' deposit. It will produce about 70 million tons of ore a year from 2013, possibly rising to 170 million tons, Albanese said.
Rio owns 95 percent of the project and the World Bank's International Finance Corp. 5 percent, Walsh said. Guinea government has the right to take 20 percent if approval for the project, expected by end-2009, is confirmed, he said.
Walsh said it was too early to update the $6 billion cost estimate for the project made in April last year.
Source: Bloomberg
FerrAus:"Major New Discovery"
FerrAus has made a "major new discovery" of iron ore at its Davidson Creek project in the Pilbara region of Western Australia, the company said yesterday.
The Adelaide-based iron ore developer said it had discovered a new iron ore zone with a potential size of 35-40 million tonnes of ore. The deposit was about 1500m long by 100-350m wide and 30-80m thick.
Managing director David Turvey said the new discovery meant that along with the adjacent Gwardar prospect, the firm had an iron ore strike length of 2.7km. "Together they have the potential to contain 60-80 million tonnes of iron mineralisation to a depth of about 180m," he said.
"FerrAus believes it will identify iron mineralisation and grow the combined resource base at the Davidson Creek project to greater than 100 million tonnes of direct shipping hematite grading 58-60 per cent iron. This exciting discovery allows FerrAus to review its mine development plans to consider large-scale production of up to 10 million tonnes per year."
FerrAus last week upgraded the resource estimate at its Robertson Range project by 30 per cent to 45 million tonnes. This resource was likely to support production of 4-5 million tonnes a year, the company said at that time.
The company believes it can reach a 100 million tonne resource this year, with a longer-term target of 250 million tonnes.
Source: Melbourne Herald Sun
The Adelaide-based iron ore developer said it had discovered a new iron ore zone with a potential size of 35-40 million tonnes of ore. The deposit was about 1500m long by 100-350m wide and 30-80m thick.
Managing director David Turvey said the new discovery meant that along with the adjacent Gwardar prospect, the firm had an iron ore strike length of 2.7km. "Together they have the potential to contain 60-80 million tonnes of iron mineralisation to a depth of about 180m," he said.
"FerrAus believes it will identify iron mineralisation and grow the combined resource base at the Davidson Creek project to greater than 100 million tonnes of direct shipping hematite grading 58-60 per cent iron. This exciting discovery allows FerrAus to review its mine development plans to consider large-scale production of up to 10 million tonnes per year."
FerrAus last week upgraded the resource estimate at its Robertson Range project by 30 per cent to 45 million tonnes. This resource was likely to support production of 4-5 million tonnes a year, the company said at that time.
The company believes it can reach a 100 million tonne resource this year, with a longer-term target of 250 million tonnes.
Source: Melbourne Herald Sun
Baosteel Eyes Stake In Australian Iron Ore Miner
China's largest steelmaker Baosteel Group may buy a stake in Australian iron ore miner Fortescue Metals Group Ltd to ensure a stable supply of raw materials.
"Baosteel will seek a stake in Fortescue when both sides reach an accord on a number of things, including common goals, development strategy and market positioning," said Xu Lejiang, chairman of Baosteel Group, yesterday at Baosteel's Majishan Port in Zhejiang province, where he received the company’s first shipment of 170,000 tons of iron ore from Fortescue.
Baosteel signed a 10-year iron ore supply contract with Fortescue in February last year under which it will get 20 million tons of ore every year.
The third largest iron ore supplier in Australia said it welcomed direct investment by major Chinese companies.
"The Chinese industrial champion takes Fortescue very seriously, and we will encourage its participation in the future of Fortescue," Andrew Forrest, founder of Fortescue, was quoted by Reuters as saying yesterday.
Fortescue has already signed contracts with 33 large and medium-sized Chinese steel manufactures for at least 10 years.
As the ore price has increased by 65 percent and the coal price tripled this year, Chinese steelmakers have begun buying overseas mining assets to reduce costs.
"In addition to the cost-cutting benefits, such stakes can also ensure a much stable long-term raw material supply, which is very important for Baosteel given the current global market condition," said Du Wei, an analyst at Umental.com, a metal information provider.
Liu Yanqi, an analyst at Haitong Securities, said: "The possible alliance is expected to strengthen Baosteel's power in iron ore price negotiations with Australian miners, such as Rio Tinto and BHP Billiton."
Baosteel has agreed to a 65 percent increase in iron ore price with Brazil's Vale. Australian miners had asked for an 85 percent increase in ore prices to compensate for the rising transport costs, a demand that Chinese steelmakers have refused to meet.
With most of its iron ore to be sold in China, Fortescue said it expects to increase annual production capacity to 100 million tons in 2010.
Source: China Daily
"Baosteel will seek a stake in Fortescue when both sides reach an accord on a number of things, including common goals, development strategy and market positioning," said Xu Lejiang, chairman of Baosteel Group, yesterday at Baosteel's Majishan Port in Zhejiang province, where he received the company’s first shipment of 170,000 tons of iron ore from Fortescue.
Baosteel signed a 10-year iron ore supply contract with Fortescue in February last year under which it will get 20 million tons of ore every year.
The third largest iron ore supplier in Australia said it welcomed direct investment by major Chinese companies.
"The Chinese industrial champion takes Fortescue very seriously, and we will encourage its participation in the future of Fortescue," Andrew Forrest, founder of Fortescue, was quoted by Reuters as saying yesterday.
Fortescue has already signed contracts with 33 large and medium-sized Chinese steel manufactures for at least 10 years.
As the ore price has increased by 65 percent and the coal price tripled this year, Chinese steelmakers have begun buying overseas mining assets to reduce costs.
"In addition to the cost-cutting benefits, such stakes can also ensure a much stable long-term raw material supply, which is very important for Baosteel given the current global market condition," said Du Wei, an analyst at Umental.com, a metal information provider.
Liu Yanqi, an analyst at Haitong Securities, said: "The possible alliance is expected to strengthen Baosteel's power in iron ore price negotiations with Australian miners, such as Rio Tinto and BHP Billiton."
Baosteel has agreed to a 65 percent increase in iron ore price with Brazil's Vale. Australian miners had asked for an 85 percent increase in ore prices to compensate for the rising transport costs, a demand that Chinese steelmakers have refused to meet.
With most of its iron ore to be sold in China, Fortescue said it expects to increase annual production capacity to 100 million tons in 2010.
Source: China Daily
Thursday, May 29, 2008
L&L On Acquisition Trail
L&L International Holding,Inc., a leading U.S.company in the Chinese coal industry, has announced that it has entered into a memorandum of understanding ("MOU") with the Hong Shan Coal Company ("Hong Shan") a coke and coal washing company
located in China’s Yunnan Province.
Hong Shan has an annual manufacturing capacity of 90,000 tons of coke and 150,000 tons of coal washing, with revenues of approx. $37 million per year, subject to due. L&L plans to help Hong Shan expand its existing coke and coal washing facilities.
Paul Lee, L&L's Chairman commented, "We are glad to announce the MOU with Hong Shan. We plan to integrate Hong Shan's coke and coal washing operations with L&L's existing coal wholesale operations, which are conducted through our subsidiary, KMC Coal, in Yunnan Province. We expect to achieve a competitive advantage through this expansion along the coal value chain as well as higher gross margin.”
He added that the company plans to make additional acquisitions in the future."
located in China’s Yunnan Province.
Hong Shan has an annual manufacturing capacity of 90,000 tons of coke and 150,000 tons of coal washing, with revenues of approx. $37 million per year, subject to due. L&L plans to help Hong Shan expand its existing coke and coal washing facilities.
Paul Lee, L&L's Chairman commented, "We are glad to announce the MOU with Hong Shan. We plan to integrate Hong Shan's coke and coal washing operations with L&L's existing coal wholesale operations, which are conducted through our subsidiary, KMC Coal, in Yunnan Province. We expect to achieve a competitive advantage through this expansion along the coal value chain as well as higher gross margin.”
He added that the company plans to make additional acquisitions in the future."
Krakatau Steel Prefers IPO Path
PT Krakatau Steel, the nation's largest steel producer, has rejected suggestions that it would benefit from partnerships with larger international steel producers. The company cited its massive first quarter profit this year, which almost equalled its full-year profit target, as evidence for its self-sustainability.
Krakatau Steel has recently attracted a host of bids from global players following the government's plan to privatise the company, a decision which company employees and leaders have publicly criticised.
"Steel plants all around the world are already overloaded in capacity. It would be very difficult for us to raise output with or without a strategic partner," company president Fazwar Bujang said in a press conference.
So far, global steel giants Arcellor Mittal and Tata Steel of India, BlueScope of Australia, Essar Ltd. of Japan and Posco Steel of South Korea have all declared an interest in Krakatau Steel.
"The decision to have either an initial public offering (IPO) or a strategic partnership is completely in the government's hands. We can only give suggestions. But we believe an IPO is better because it will give the public a chance to own shares in Krakatau Steel," Mr Fazwar said, adding that an IPO would also increase transparency and market capitalization, "besides, the government has stated the most important thing to gain from a strategic sale is technological advancement, but none of the (four potential) investors has proposed any new technological contribution," Fazwar said.
The company's net profit reached Rp411 billion (US$43.9 million) in the first quarter of this year, Rp19 billion less than its full-year profit target of Rp 430 billion.
Mr Fazwar said in response that the company was revising up its 2008 target to Rp850 billion, more than double last year's Rp 367 billion.
"The healthy quarterly profit is due to the rising price of steel products in line with increasing demand and significant improvements in our operations," Fazwar said.
Director of marketing Irvan K. Hakim said the company may raise domestic prices by up to 10 percent to keep up with recent fuel price increases, which have boosted production costs.
"The prices will remain the same for deliveries in June and July, but in August and September we may have to raise them by 10 percent," Irvan said.
The company has set forth a number of projects to increase output capacity to 5 million tons per year by 2011, double its current annual capacity of 2.5 million tons.
In April, the company signed a joint venture deal with state-owned mining company PT Aneka Tambang to build an iron ore processing plant in Batu Licin, South Kalimantan, which is scheduled to start operations in 2010.
In May, the company signed an agreement with German metal company SMS Demag to increase production capacity of its hot strip mill from 2 million to 2.4 million tons per annum.
Source: Jakarta Post
Krakatau Steel has recently attracted a host of bids from global players following the government's plan to privatise the company, a decision which company employees and leaders have publicly criticised.
"Steel plants all around the world are already overloaded in capacity. It would be very difficult for us to raise output with or without a strategic partner," company president Fazwar Bujang said in a press conference.
So far, global steel giants Arcellor Mittal and Tata Steel of India, BlueScope of Australia, Essar Ltd. of Japan and Posco Steel of South Korea have all declared an interest in Krakatau Steel.
"The decision to have either an initial public offering (IPO) or a strategic partnership is completely in the government's hands. We can only give suggestions. But we believe an IPO is better because it will give the public a chance to own shares in Krakatau Steel," Mr Fazwar said, adding that an IPO would also increase transparency and market capitalization, "besides, the government has stated the most important thing to gain from a strategic sale is technological advancement, but none of the (four potential) investors has proposed any new technological contribution," Fazwar said.
The company's net profit reached Rp411 billion (US$43.9 million) in the first quarter of this year, Rp19 billion less than its full-year profit target of Rp 430 billion.
Mr Fazwar said in response that the company was revising up its 2008 target to Rp850 billion, more than double last year's Rp 367 billion.
"The healthy quarterly profit is due to the rising price of steel products in line with increasing demand and significant improvements in our operations," Fazwar said.
Director of marketing Irvan K. Hakim said the company may raise domestic prices by up to 10 percent to keep up with recent fuel price increases, which have boosted production costs.
"The prices will remain the same for deliveries in June and July, but in August and September we may have to raise them by 10 percent," Irvan said.
The company has set forth a number of projects to increase output capacity to 5 million tons per year by 2011, double its current annual capacity of 2.5 million tons.
In April, the company signed a joint venture deal with state-owned mining company PT Aneka Tambang to build an iron ore processing plant in Batu Licin, South Kalimantan, which is scheduled to start operations in 2010.
In May, the company signed an agreement with German metal company SMS Demag to increase production capacity of its hot strip mill from 2 million to 2.4 million tons per annum.
Source: Jakarta Post
Emco To Trade Indonesian Coal
Emco, primarily focused on the transmission and distribution segment of the power sector, plans to foray into the coal trading business and has tied up for coal supply from Indonesia, Chairman and Managing Director Rajesh Jain said today.
The company will source coal for its proposed trading business from the Indonesian coal mine company PT Bina Insan Sukses Mandiri, where it will acquire a 37.35% stake by virtue of Emco's arrangement with Singapore's Rabaan (S) Pte Ltd.
Emco, through a subsidiary, has picked up 37.35 per cent stake in Rabaan, which has a long-term exclusive coal offtake agreement with the Indonesian coal miner.
Emco’s core business has been in the business of manufacturing transformers, electric meters, and executing transmission and distribution projects. PT Bina Insan Sukses' mine is spread over 5,000 hectares and has an estimated coal reserve of 105 million tonnes. Emco expects to start getting coal from the mine in the next three to four months.
Source: Business Standard
The company will source coal for its proposed trading business from the Indonesian coal mine company PT Bina Insan Sukses Mandiri, where it will acquire a 37.35% stake by virtue of Emco's arrangement with Singapore's Rabaan (S) Pte Ltd.
Emco, through a subsidiary, has picked up 37.35 per cent stake in Rabaan, which has a long-term exclusive coal offtake agreement with the Indonesian coal miner.
Emco’s core business has been in the business of manufacturing transformers, electric meters, and executing transmission and distribution projects. PT Bina Insan Sukses' mine is spread over 5,000 hectares and has an estimated coal reserve of 105 million tonnes. Emco expects to start getting coal from the mine in the next three to four months.
Source: Business Standard
Foreign Miners Express Interest In India Coal Blocks
A number of overseas companies have expressed an interest in carrying out an underground mining contract in seven Coal India blocks. XIndia Ltd, Australia’s White Mining Co, Bucyrus and UK’s Anglo Coal are among the companies said to be interested.
“CIL has invited expressions of interest (EoIs) for undertaking underground mining contracts in seven mines located in West Bengal, Jharkhand, Orissa, Chattishgarh and Maharashtra. These would be a long term contract for extracting anything between 2-5 million tonnes of coal annually from each of these mines. Reserves are in excess of 400 mt in all these blocks and selected parties will invest in installing machinery and equipment in these mines,” said Mr Partha Bhattacharyya, chairman CIL.
Opening up seven new underground mines is part of CIL’s plan to enhance coal production from such mines to balance the supply of coal from open cast and underground mines. Currently, coal production is heavily skewed in favour of open cast mines.
Some companies interested in entering into contract with CIL for underground mining have asked for more time to participate in the process of expression of interest and the last date for participating in the EoI has been extended to June 27.
CIL has also decided to roll out their forward e-auction and has decided to sell 15 million tonnes of coal each year through this platform, two-thirds of which will be high quality coal from underground mines.
Under forward e-auction, bidders - who will have to be consumers of coal - will be able to quote for either a few quarters or more a maximum of a year. The bidding process will be undertaken by MSTC and Coal Junction on behalf of CIL and its subsidiaries. CIL has decided to sell about 40 million tonne of coal through spot and forward e-auction put together during 2008-09.
Source: Economic Times
“CIL has invited expressions of interest (EoIs) for undertaking underground mining contracts in seven mines located in West Bengal, Jharkhand, Orissa, Chattishgarh and Maharashtra. These would be a long term contract for extracting anything between 2-5 million tonnes of coal annually from each of these mines. Reserves are in excess of 400 mt in all these blocks and selected parties will invest in installing machinery and equipment in these mines,” said Mr Partha Bhattacharyya, chairman CIL.
Opening up seven new underground mines is part of CIL’s plan to enhance coal production from such mines to balance the supply of coal from open cast and underground mines. Currently, coal production is heavily skewed in favour of open cast mines.
Some companies interested in entering into contract with CIL for underground mining have asked for more time to participate in the process of expression of interest and the last date for participating in the EoI has been extended to June 27.
CIL has also decided to roll out their forward e-auction and has decided to sell 15 million tonnes of coal each year through this platform, two-thirds of which will be high quality coal from underground mines.
Under forward e-auction, bidders - who will have to be consumers of coal - will be able to quote for either a few quarters or more a maximum of a year. The bidding process will be undertaken by MSTC and Coal Junction on behalf of CIL and its subsidiaries. CIL has decided to sell about 40 million tonne of coal through spot and forward e-auction put together during 2008-09.
Source: Economic Times
India Holds Down Notified Coal Prices
The Indian government said today said it will not increase the notified prices of coal in the current year, giving relief to sectors such as steel and power that are battling high input costs.
"There is no plan to increase the notified prices of coal this year. Instead, we will enhance our production and reduce operational costs," Minister of State for Coal Santosh Bagrodia told journalists on the sidelines of a conference organised by Indian Coal Forum here.
The notified prices of coal sold to firms in power, steel and other sectors varies between an average Rs 600 and 1,600 per tonne, depending on its grade.
Mr Bagrodia said the government is taking steps to augment coal production and also utilise non-mineable deposits that are available in plenty. He said a global tender would be floated shortly to invite potential players for taking up gas-beneficiation of non-mineable deposits of hundreds of tons in the country.
There are also plans for the government to allow open cast mining beyond the depth of 300 metres to extract more coal. On the agenda is to ensure cent per cent washing of coal, which is transported beyond 1,000 km stretch by end of the current plan. Though the minister was confident in achieving the coal production target of 732 million tons (MT) in the current plan, he candidly admitted the government, as of now, does not have a plan to go beyond 600 MT of coal production.
Listing his priority for the sector, he said his top-most agenda is to make India self-sufficient in coal. He informed that e-sale of the fossil fuel is expected to touch 50 MT mark by Friday.
Source: Economic Times, India
"There is no plan to increase the notified prices of coal this year. Instead, we will enhance our production and reduce operational costs," Minister of State for Coal Santosh Bagrodia told journalists on the sidelines of a conference organised by Indian Coal Forum here.
The notified prices of coal sold to firms in power, steel and other sectors varies between an average Rs 600 and 1,600 per tonne, depending on its grade.
Mr Bagrodia said the government is taking steps to augment coal production and also utilise non-mineable deposits that are available in plenty. He said a global tender would be floated shortly to invite potential players for taking up gas-beneficiation of non-mineable deposits of hundreds of tons in the country.
There are also plans for the government to allow open cast mining beyond the depth of 300 metres to extract more coal. On the agenda is to ensure cent per cent washing of coal, which is transported beyond 1,000 km stretch by end of the current plan. Though the minister was confident in achieving the coal production target of 732 million tons (MT) in the current plan, he candidly admitted the government, as of now, does not have a plan to go beyond 600 MT of coal production.
Listing his priority for the sector, he said his top-most agenda is to make India self-sufficient in coal. He informed that e-sale of the fossil fuel is expected to touch 50 MT mark by Friday.
Source: Economic Times, India
Jinchuan Group Cuts Nickel Price For Fourth Time This Month
Jinchuan Group Ltd, China’s largest nickel producer has adjusted downwards its ex-work price of nickel on Wednesday to RMB192, 000/mt from RMB208, 000/mt, the fourth such price decrease in May. This latest cut was largely unexpected and observers will be taking an interest in the stainless steel market, which is expected to be affected by the falling nickel price.
Yunnan Silicon Metal Production Hit By Power Shortages
Reports from China’s Yunnan province suggest that many silicon metal enterprises have stopped production owing to power shortages and are not expected to restart production until the end of June.
At present, Yunnan has a shortage of 800,000 kilowatts during the peak period and high-consuming businesses are having to limit their power usage in order to guarantee electrical supplies to residents.
At present, Yunnan has a shortage of 800,000 kilowatts during the peak period and high-consuming businesses are having to limit their power usage in order to guarantee electrical supplies to residents.
China Reports Lower Electrlytic Manganese Metal Exports
China Customs reports that China’s export volume of electrolytic manganese metal was 20,427 tons in April 2008. While this was an increase over the previous month’s 16,355 tons it was well down on the 27,158 tones exported in April 2007.
The market appears more stable this year and exports for the first four months of the year saw a 15% decrease from 88,840 tons from January to April 2007, to 75,417 tons for the same period in 2008
The chief export destination was Japan (5,342 tons) followed by South Korea (4,640 tons), Russia (3,263 tons) and the Netherlands (2.654 tons). Export to U.S.A. increased from 760 tons in March 2008 to 1,080 tons in April.
The market appears more stable this year and exports for the first four months of the year saw a 15% decrease from 88,840 tons from January to April 2007, to 75,417 tons for the same period in 2008
The chief export destination was Japan (5,342 tons) followed by South Korea (4,640 tons), Russia (3,263 tons) and the Netherlands (2.654 tons). Export to U.S.A. increased from 760 tons in March 2008 to 1,080 tons in April.
Wednesday, May 28, 2008
Stemcor Seeks Stakes In Indian Steel Projects
The UK-based steel trading house Stemcor is eyeing minority stakes in steel and raw material projects in India. It currently has a small stake in three Indian firms, including the Calcutta-based Electrosteel Castings, in which it has a 5 per cent stake. The firm also holds 10 per cent in Orissa’s Mesco Steel and 14.67 per cent in Karnataka’s Sathavahana Ispat Ltd.
Stemcor, which has a turnover of around $8 billion, is open to stake buys, but does not want to become a manufacturing outfit. “Our primary business is trading. The investments are made to consolidate and enhance that,” said William Attenborough, managing director (West and Southeast Asia).
Stemcor works with smaller companies, arranging raw material for them and financing and selling their end-products.
The company is also setting up an iron ore pellet unit at Kalinganagar, Orissa, where steel companies such as Tata Steel and JSW Steel will set up plants. The 4-million-tonne plant, which will require an investment of Rs 14billion, is expected to start operations by early 2010, said Vineet J. Mehra, executive director of Stemcor India.
The company expects India to become a big exporter of steel if all proposed capacities are implemented.
Last year Stemcor exported 350,000 tonnes of finished steel. It also exported 500,000 tonnes of iron ore fines and imported about 600,000 tonnes of met coke and 1.8 million tonnes of coking coal.
Source: The Telegraph, Calcutta
Stemcor, which has a turnover of around $8 billion, is open to stake buys, but does not want to become a manufacturing outfit. “Our primary business is trading. The investments are made to consolidate and enhance that,” said William Attenborough, managing director (West and Southeast Asia).
Stemcor works with smaller companies, arranging raw material for them and financing and selling their end-products.
The company is also setting up an iron ore pellet unit at Kalinganagar, Orissa, where steel companies such as Tata Steel and JSW Steel will set up plants. The 4-million-tonne plant, which will require an investment of Rs 14billion, is expected to start operations by early 2010, said Vineet J. Mehra, executive director of Stemcor India.
The company expects India to become a big exporter of steel if all proposed capacities are implemented.
Last year Stemcor exported 350,000 tonnes of finished steel. It also exported 500,000 tonnes of iron ore fines and imported about 600,000 tonnes of met coke and 1.8 million tonnes of coking coal.
Source: The Telegraph, Calcutta
Gujarat NRE To Raise Output At Australian Coke Mines
Gujarat NRE Coke Ltd, which is increasing coal production at its mines in Australia, is planning to acquire half-a-dozen bulk carriers to bring coal to India.
“We are in the process of acquiring on lease charter six bulk carriers with the option of buying them out. These carriers are now under construction in shipyards and will be progressively put into use from 2010 onwards,” said Mr Arun Kumar Jagatramka, Vice-Chairman and Managing Director.
The company is planning to increase its production substantially from the two Australian mines it owns in the next couple of years and is evaluating plans to ramp up processing capacities in India to deal with the increase in production, he said.
Gujarat NRE Coke is aiming to garner a substantial share in the 25-million-tonne coke market globally, which is expected to triple to 75 million tonnes by 2011-12. It is the largest non-captive manufacturer of low-ash metallurgical coke in the country.
“Originally, we planned to mine about seven million tonnes [of] coking coal. However, considering the ongoing prices of coal, we have upped the target. We are currently revising our plans and would mine about 10-12 million tonnes of coal as part of our desire to emerge among the top 10 players in the sector globally.”
Gujarat NRE produced about 900,000 tonnes of coking coal during 2006-07, compared with 600,000 tonnes the year before. The soaring coking coal prices were perceived as speculative phenomena initially but it is increasing firmly.
Asked about the plans for the company’s coking units in India, Mr Jagatramka said, “We are evaluating our plans for Indian units. We might expand the existing capacity or set up new facility. We don’t see coal prices coming down in the near future.”
Gujarat NRE is the only Indian company to own and operate coal mines in Australia. Through its listed subsidiaries in Australia, the company operates two mines in the New South Wales region with combined resources of more than 560 million tonnes of premium quality hard coking coal and their ownership accords the company the much sought after cover against erratic supplies. Mine ownership also provides a hedge against global price fluctuations.
In India, the company has three plants in Khambhalia, Bhachau (Gujarat) and Dharwad (Dharwad) The company also has strategic investments in resource prospecting companies in Australia. Its subsidiary, Gujarat NRE Mineral Resources, is prospecting for petroleum derivatives in a 10,000 sq km tenement in the Canning Basin Region of Australia. Geo-seismic studies are at an advanced stage, Mr Jagatramka added.
Source: The Hindu Business Line
“We are in the process of acquiring on lease charter six bulk carriers with the option of buying them out. These carriers are now under construction in shipyards and will be progressively put into use from 2010 onwards,” said Mr Arun Kumar Jagatramka, Vice-Chairman and Managing Director.
The company is planning to increase its production substantially from the two Australian mines it owns in the next couple of years and is evaluating plans to ramp up processing capacities in India to deal with the increase in production, he said.
Gujarat NRE Coke is aiming to garner a substantial share in the 25-million-tonne coke market globally, which is expected to triple to 75 million tonnes by 2011-12. It is the largest non-captive manufacturer of low-ash metallurgical coke in the country.
“Originally, we planned to mine about seven million tonnes [of] coking coal. However, considering the ongoing prices of coal, we have upped the target. We are currently revising our plans and would mine about 10-12 million tonnes of coal as part of our desire to emerge among the top 10 players in the sector globally.”
Gujarat NRE produced about 900,000 tonnes of coking coal during 2006-07, compared with 600,000 tonnes the year before. The soaring coking coal prices were perceived as speculative phenomena initially but it is increasing firmly.
Asked about the plans for the company’s coking units in India, Mr Jagatramka said, “We are evaluating our plans for Indian units. We might expand the existing capacity or set up new facility. We don’t see coal prices coming down in the near future.”
Gujarat NRE is the only Indian company to own and operate coal mines in Australia. Through its listed subsidiaries in Australia, the company operates two mines in the New South Wales region with combined resources of more than 560 million tonnes of premium quality hard coking coal and their ownership accords the company the much sought after cover against erratic supplies. Mine ownership also provides a hedge against global price fluctuations.
In India, the company has three plants in Khambhalia, Bhachau (Gujarat) and Dharwad (Dharwad) The company also has strategic investments in resource prospecting companies in Australia. Its subsidiary, Gujarat NRE Mineral Resources, is prospecting for petroleum derivatives in a 10,000 sq km tenement in the Canning Basin Region of Australia. Geo-seismic studies are at an advanced stage, Mr Jagatramka added.
Source: The Hindu Business Line
Coking Coal Price Estimates Revised Sharply Upwards
Coking coal prices may rise 50 percent more than forecast next year on rising steel production and slow output growth from mines in Australia and Canada, according to UBS AG.
The price of hard coking coal, used to make steel, may increase to $300 a metric ton for the Japanese financial year beginning April 1, 2009, UBS said yesterday in a report by analysts led by Glyn Lawcock. The previous forecast was $200 a ton. Estimates for thermal coal used in power generation rose 28 percent to $160 a ton.
Slow supply growth, following floods at mines in Australia's Queensland state earlier in the year, may leave the global coking coal market about 6 million tons short next year, Lawcock said.
While China can generally meet the needs of its growing steel industry, any risks to the thermal coal supply may limit rail capacity for other cargo, cutting coking coal exports and increasing imports by coastal steelmakers, he said. ``This could potentially push balances into a greater deficit than currently envisaged,'' Lawcock said.
Storms in China in February boosted demand for thermal coal and exposed bottlenecks in the nation's rail network for delivery the fuel. Thermal coal was given priority over other freight.
After a brief recovery, coal inventories at Chinese power stations are again declining and may tighten supply this summer, Lawcock said. At the same time, supplies from Vietnam are capped, exports from South Africa are contracting, and port and rail bottlenecks in Australia are also capping deliveries, he said.
Source: Bloomberg
The price of hard coking coal, used to make steel, may increase to $300 a metric ton for the Japanese financial year beginning April 1, 2009, UBS said yesterday in a report by analysts led by Glyn Lawcock. The previous forecast was $200 a ton. Estimates for thermal coal used in power generation rose 28 percent to $160 a ton.
Slow supply growth, following floods at mines in Australia's Queensland state earlier in the year, may leave the global coking coal market about 6 million tons short next year, Lawcock said.
While China can generally meet the needs of its growing steel industry, any risks to the thermal coal supply may limit rail capacity for other cargo, cutting coking coal exports and increasing imports by coastal steelmakers, he said. ``This could potentially push balances into a greater deficit than currently envisaged,'' Lawcock said.
Storms in China in February boosted demand for thermal coal and exposed bottlenecks in the nation's rail network for delivery the fuel. Thermal coal was given priority over other freight.
After a brief recovery, coal inventories at Chinese power stations are again declining and may tighten supply this summer, Lawcock said. At the same time, supplies from Vietnam are capped, exports from South Africa are contracting, and port and rail bottlenecks in Australia are also capping deliveries, he said.
Source: Bloomberg
Visa Steel To Invest In New Steel Project
Indian metals and minerals group Visa Steel will be putting up a 2.5 million tonne integrated steel project in Chhattisgarh at a cost of around Rs 100 billion.
Speaking at a press conference to announce the company's results, Visa’s chairman, Vishambhar Saran, said the technical feasibility report was underway and would be completed by the end of July.
In the first phase, Visa Steel would set up a one million tonne rolling mill, which would cost Rs 5-6billion. The full project would be completed over a period of 5-6 years.
Vishal Agarwal, managing director said the balance would have to be acquired and the full requirement would emerge once the feasibility report was completed.
The Chhattisgarh plant would produce long products for the domestic market while the Orissa project would be partly for domestic and export markets.
Mr Agarwal said, "Our strategy remains to establish a globally competitive and worldclass integrated facility of special and stainless steel making in Orissa, with captive power generation and backward linkage of raw materials mines."
Visa Steel is planning to integrate backwards into the mining of iron ore, chrome ore and coal. Iron ore is currently being sourced from Orissa Mining Corporation (OMC) until commencement of its own mining operations.
So far, Visa has invested around Rs 10billion in pig iron, coke and ferro chrome projects. Saran said orders worth Rs 8billion had been place for further expansion in Orissa.
The 300,000 tonne sponge iron plant with and the power plants were nearing completion.
A part of the Patrapada coal block at Talcher with a 54 million tonne deposit has been allotted to the company. Visa Steel is also developing a chrome ore deposit through its subsidiary company, Ghotaringa Minerals Ltd.
The requirement of coking coal is being imported from Australia.
Source: Business Standard
Speaking at a press conference to announce the company's results, Visa’s chairman, Vishambhar Saran, said the technical feasibility report was underway and would be completed by the end of July.
In the first phase, Visa Steel would set up a one million tonne rolling mill, which would cost Rs 5-6billion. The full project would be completed over a period of 5-6 years.
Vishal Agarwal, managing director said the balance would have to be acquired and the full requirement would emerge once the feasibility report was completed.
The Chhattisgarh plant would produce long products for the domestic market while the Orissa project would be partly for domestic and export markets.
Mr Agarwal said, "Our strategy remains to establish a globally competitive and worldclass integrated facility of special and stainless steel making in Orissa, with captive power generation and backward linkage of raw materials mines."
Visa Steel is planning to integrate backwards into the mining of iron ore, chrome ore and coal. Iron ore is currently being sourced from Orissa Mining Corporation (OMC) until commencement of its own mining operations.
So far, Visa has invested around Rs 10billion in pig iron, coke and ferro chrome projects. Saran said orders worth Rs 8billion had been place for further expansion in Orissa.
The 300,000 tonne sponge iron plant with and the power plants were nearing completion.
A part of the Patrapada coal block at Talcher with a 54 million tonne deposit has been allotted to the company. Visa Steel is also developing a chrome ore deposit through its subsidiary company, Ghotaringa Minerals Ltd.
The requirement of coking coal is being imported from Australia.
Source: Business Standard
Jinchuan Group Looks Elsewhere For Nickel Ventures In The Philippines
The Jinchuan Group Ltd., China’s largest nickel producer, is talking to other local nickel firms for possible joint venture arrangements after failing to clinch a deal with Philnico Industrial Corp. for its planned investments in the Nonoc nickel plant.
Malacañang special envoy on trade and investments to China Francis Chua said there are several nickel operations in the country that Jinchuan can tap into other than Nonoc, the country’s biggest nickel plant. The Chinese firm’s entry into Nonoc failed as discussions became bogged down caused by disagreements on the company’s debt obligations.
Jinchuan also questioned the moral authority of Philnico to negotiate given that it has yet to pay the Philippine government for acquiring Nonoc in the mid-90s.
The Philippines has the third largest nickel deposit in the world. The deposits are found in Palawan, Zambales, Mindoro, Samar, Negros, Surigal del Norte and other parts of Mindanao, which are all in the so-called ophiolite belts.
The proposed revival of the Nonoc mines is one of the projects being eyed by the Chinese as announced by President Gloria Macapagal Arroyo as early as April 2005.
In 2005, Jinchuan, which operates the largest nickel mine in Mainland China, signified an interest to revive the Nonoc nickel mining project, which closed in 1982 because of high energy costs.
Global players in the nickel mining sector in the country include BHP Biliton through the Hallmark Nickel Project (formerly Pujada) in the Pujada Peninsula in Mati, Davao Oriental covering an total area of 11,799 hectares.
BHP reiterated its commitment to invest in the country through the Hallmark Project, and further signified to look for more substantial nickel deposits in the country.
Aside from BHP, the Department of Environment and Natural Resources also identified four other global major players would help boost the development of nickel deposits in the country namely: Chemical Vapour Metal Refining, Inc. (CVMR), Sumitomo Metals Mining Corp. of Japan, Chinese top companies CITIC and Jinchuan Group. CVMR recently set up its Philippine office and formed local subsidiaries to establish mining claims in Palawan, Samar and other potential areas. The Canadian mining giant also plans to put up its own processing plant in the Philippines.
Sumitomo is currently in partnership with local Rio Tuba Nickel Mining Corp. for the operation of the Coral Bay Project, a High-Pressure Acid Leach (HPAL) nickel processing plant in southern Palawan, the first in the country. Currently producing 10,000 tons nickel and 750 tons of cobalt concentrate per year, it is at present undertaking an expansion program that would double its capacity by 2008.
CITIC of China has also set up its local unit and is now involved in mining operations in Dinagat, Siargao Island. Jinchuan is currently negotiating with possible local partners for joint exploration and mine development.
About two-thirds of global nickel metal production is being used in stainless steel production, 10 percent in electroplating, and 20 percent in alloys and coins.
Driven by the increasing prices of nickel metal, Philippine production of direct shipping nickel ore has increased by more than four times from 2004 to 2006. The nickel ore productions were 874,195 DMT in 2004; 1,106,903 DMT in 2005; and 3,576,666 DMT in 2006; with equivalent nickel contents of 16,972 MT, 22,555 MT and 50,637 MT, respectively.
The government envisages a revitalized minerals industry believing that it would serve as a catalyst for development, particularly in the countryside.
Source: Manila Bulletin
Malacañang special envoy on trade and investments to China Francis Chua said there are several nickel operations in the country that Jinchuan can tap into other than Nonoc, the country’s biggest nickel plant. The Chinese firm’s entry into Nonoc failed as discussions became bogged down caused by disagreements on the company’s debt obligations.
Jinchuan also questioned the moral authority of Philnico to negotiate given that it has yet to pay the Philippine government for acquiring Nonoc in the mid-90s.
The Philippines has the third largest nickel deposit in the world. The deposits are found in Palawan, Zambales, Mindoro, Samar, Negros, Surigal del Norte and other parts of Mindanao, which are all in the so-called ophiolite belts.
The proposed revival of the Nonoc mines is one of the projects being eyed by the Chinese as announced by President Gloria Macapagal Arroyo as early as April 2005.
In 2005, Jinchuan, which operates the largest nickel mine in Mainland China, signified an interest to revive the Nonoc nickel mining project, which closed in 1982 because of high energy costs.
Global players in the nickel mining sector in the country include BHP Biliton through the Hallmark Nickel Project (formerly Pujada) in the Pujada Peninsula in Mati, Davao Oriental covering an total area of 11,799 hectares.
BHP reiterated its commitment to invest in the country through the Hallmark Project, and further signified to look for more substantial nickel deposits in the country.
Aside from BHP, the Department of Environment and Natural Resources also identified four other global major players would help boost the development of nickel deposits in the country namely: Chemical Vapour Metal Refining, Inc. (CVMR), Sumitomo Metals Mining Corp. of Japan, Chinese top companies CITIC and Jinchuan Group. CVMR recently set up its Philippine office and formed local subsidiaries to establish mining claims in Palawan, Samar and other potential areas. The Canadian mining giant also plans to put up its own processing plant in the Philippines.
Sumitomo is currently in partnership with local Rio Tuba Nickel Mining Corp. for the operation of the Coral Bay Project, a High-Pressure Acid Leach (HPAL) nickel processing plant in southern Palawan, the first in the country. Currently producing 10,000 tons nickel and 750 tons of cobalt concentrate per year, it is at present undertaking an expansion program that would double its capacity by 2008.
CITIC of China has also set up its local unit and is now involved in mining operations in Dinagat, Siargao Island. Jinchuan is currently negotiating with possible local partners for joint exploration and mine development.
About two-thirds of global nickel metal production is being used in stainless steel production, 10 percent in electroplating, and 20 percent in alloys and coins.
Driven by the increasing prices of nickel metal, Philippine production of direct shipping nickel ore has increased by more than four times from 2004 to 2006. The nickel ore productions were 874,195 DMT in 2004; 1,106,903 DMT in 2005; and 3,576,666 DMT in 2006; with equivalent nickel contents of 16,972 MT, 22,555 MT and 50,637 MT, respectively.
The government envisages a revitalized minerals industry believing that it would serve as a catalyst for development, particularly in the countryside.
Source: Manila Bulletin
ARM Manganese Reserves "More Than Adequate"
While South African diversified miner African Rainbow Minerals (Arm) remains on the lookout for opportunities to acquire new manganese orebodies, its current deposits of the ferrous metal are “more than adequate” to facilitate growth going forward, CEO Andre Wilkens said on Tuesday.
The firm had had some talks with new entrants in the industry on possible consolidation, he said on a conference call.
Assmang, which houses the company's ferrous-metals assets and is co-owned with the Johannesburg-listed Assore, mines manganese ore from three mines in the Northern Cape and produces ferromanganese at its Cato Ridge operations, in KwaZulu-Natal. The company currently produces about 400 000 t/y of ore from its Gloria mine, and 3.6-million tons a year from the Nchwaneng operations. Output from Gloria is expected to double within the next two years, and the company was confident that it could increase throughput at Nchwaneng to 4-million tons a year, and beyond, “with small changes”, Wilkens said. “The orebody we own has got huge potential to expand in the future.”
About 90% of global manganese output is used in the production of iron and steel, and South Africa's Kalahari manganese fields (KMF) contain an estimated 80% of the world's manganese resources. About 40% of the KMF resources are high grade, and Assmang has the right to mine 60% of that high-grade ore, according to a presentation made by Wilkens. About 75% of the company's production is exported to Europe and North America, while the balance is sold locally to Cato Ridge and other customers.
On the mining side, the most significant constraint to growth for now is logistic bottlenecks, the company says.“The growth of the business really depends of what we can get through the ports and through the rail capacity,” Wilkens commented. The company was in talks with State transport utility Transnet to rail more ore, and was hoping to get its “fair share” of planned capactiy expansions at the Port Elizabeth port, Assmang's main export channel.
Assmang is currently renegotiating manganese contract prices and expects to agree on prices “fairly close” to current spot prices, Wilkens said.
The negotiations are expected to be wrapped up in the next couple of months.
Prices for both manganese ore and alloys rose sharply over the last year, driven by surging demand for steel, and are expected to continue at or just below the higher levels over the next couple of years, as the market is expected to be in deficit until 2011.
Source: Mining Weekly
The firm had had some talks with new entrants in the industry on possible consolidation, he said on a conference call.
Assmang, which houses the company's ferrous-metals assets and is co-owned with the Johannesburg-listed Assore, mines manganese ore from three mines in the Northern Cape and produces ferromanganese at its Cato Ridge operations, in KwaZulu-Natal. The company currently produces about 400 000 t/y of ore from its Gloria mine, and 3.6-million tons a year from the Nchwaneng operations. Output from Gloria is expected to double within the next two years, and the company was confident that it could increase throughput at Nchwaneng to 4-million tons a year, and beyond, “with small changes”, Wilkens said. “The orebody we own has got huge potential to expand in the future.”
About 90% of global manganese output is used in the production of iron and steel, and South Africa's Kalahari manganese fields (KMF) contain an estimated 80% of the world's manganese resources. About 40% of the KMF resources are high grade, and Assmang has the right to mine 60% of that high-grade ore, according to a presentation made by Wilkens. About 75% of the company's production is exported to Europe and North America, while the balance is sold locally to Cato Ridge and other customers.
On the mining side, the most significant constraint to growth for now is logistic bottlenecks, the company says.“The growth of the business really depends of what we can get through the ports and through the rail capacity,” Wilkens commented. The company was in talks with State transport utility Transnet to rail more ore, and was hoping to get its “fair share” of planned capactiy expansions at the Port Elizabeth port, Assmang's main export channel.
Assmang is currently renegotiating manganese contract prices and expects to agree on prices “fairly close” to current spot prices, Wilkens said.
The negotiations are expected to be wrapped up in the next couple of months.
Prices for both manganese ore and alloys rose sharply over the last year, driven by surging demand for steel, and are expected to continue at or just below the higher levels over the next couple of years, as the market is expected to be in deficit until 2011.
Source: Mining Weekly
Hopes Rise For St Lawrence Fluorspar Mines
Burin Fluorspar Ltd., owners of the St. Lawrence fluorspar mines in Newfoundland, has announced an agreement in principal to amalgamate with a British Columbia Firm, Riveria Capital Corp. The company hopes this is a first step towards reactivating the St. Lawrence Mine. Burin Fluorspar, through its wholly owned subsidiary, Burin Minerals Ltd,. holds a 100% interest in the mining leases and related mill assets at St. Lawrence.
In a news release Burin Fluorspar said they recently completed equity financing valued at $6.2 million to complete a number of activities they perceive necessary for the project to move forward, with the ultimate goal of reactivating the mine. Included is funding for a drilling program and a bankable feasibility study, to validate the fluorspar mineral deposits in the St. Lawrence area. The fluorspar mines at St. Lawrence began operating in 1933 with the operations ultimately being owned and operated by Alcan Aluminum Ltd. in 1942 and later by Minworth Limited a British firm in 1986. The mine has been idle since November 1990.
Grand Bank MHA Darin King called it significant for the people of St. Lawrence and the surrounding areas as the increasing global demand for fluorspar has made the reactivation of the mine much more attractive. King says the deal will make Burin Fluorspar a publicly traded company and re-establish it as a well financed debt-free corporation.
Source: VOCM
In a news release Burin Fluorspar said they recently completed equity financing valued at $6.2 million to complete a number of activities they perceive necessary for the project to move forward, with the ultimate goal of reactivating the mine. Included is funding for a drilling program and a bankable feasibility study, to validate the fluorspar mineral deposits in the St. Lawrence area. The fluorspar mines at St. Lawrence began operating in 1933 with the operations ultimately being owned and operated by Alcan Aluminum Ltd. in 1942 and later by Minworth Limited a British firm in 1986. The mine has been idle since November 1990.
Grand Bank MHA Darin King called it significant for the people of St. Lawrence and the surrounding areas as the increasing global demand for fluorspar has made the reactivation of the mine much more attractive. King says the deal will make Burin Fluorspar a publicly traded company and re-establish it as a well financed debt-free corporation.
Source: VOCM
Kerala State Government In Titanium Sponge Joint Venture
The Industry Minister of the Indian State of Kerala, Mr Elamaram Kareem, said that the government is keen on pursuing a joint venture with the Russian firm Rosoboron for setting up a Titanium Sponge factory in Chavara. Steps have been taken to acquire land for the factory, the Minister told a press conference.
"After signing the MoU, Rosoboron submitted a detailed project report worth Rs 960 crore [Rs9.6billion] for the factory. This includes the price of 100 acre land also. A technical committee is evaluating the proposal. Engineers India, a Government of India enterprise, will value the project’s estimate," said Mr Kareem. He added that technical expert committee comprises senior scientists nominated by ISRO and the Government of India.
Mr Kareem said the Rosoboron project will be in addition to the ISRO-KMML joint venture to produce Titanium Sponge at Chavara.
"The capacity of this plant will be 500 tonnes per annum. As per the revised estimate submitted by ISRO, the cost for setting up this plant will touch Rs 158 crore [Rs1.58billion]. Rosoboron proposes to produce 10000 tonnes of Titanium Sponge," he added.
The Minister said the government’s information was that the technology used by Avisma Corporation, a subsidiary of Rosoboron, for manufacturing Titanium Sponge is the best in the industry.
"The long term plan is to produce finished Titanium goods from the plant. The government demanded a stake of more than 26 % in the venture," said Mr Kareem.
Source: NewIndPress.com
"After signing the MoU, Rosoboron submitted a detailed project report worth Rs 960 crore [Rs9.6billion] for the factory. This includes the price of 100 acre land also. A technical committee is evaluating the proposal. Engineers India, a Government of India enterprise, will value the project’s estimate," said Mr Kareem. He added that technical expert committee comprises senior scientists nominated by ISRO and the Government of India.
Mr Kareem said the Rosoboron project will be in addition to the ISRO-KMML joint venture to produce Titanium Sponge at Chavara.
"The capacity of this plant will be 500 tonnes per annum. As per the revised estimate submitted by ISRO, the cost for setting up this plant will touch Rs 158 crore [Rs1.58billion]. Rosoboron proposes to produce 10000 tonnes of Titanium Sponge," he added.
The Minister said the government’s information was that the technology used by Avisma Corporation, a subsidiary of Rosoboron, for manufacturing Titanium Sponge is the best in the industry.
"The long term plan is to produce finished Titanium goods from the plant. The government demanded a stake of more than 26 % in the venture," said Mr Kareem.
Source: NewIndPress.com
Strike Resources Reports High Iron Grades From Paulsens East Project
The diversified international minerals company Strike Resources Limited has announced an average iron grade of 64.7% Fe from a recently conducted rock chip sampling programme within its 75% owned Paulsens East Project tenements, located approximately 140 kilometres west of Tom Price in the Pilbara region of Western Australia.
The average came from a sample of 55 rock chip samples collected from the Paulsens East Project in April 2008. The highest returned grade was 67.67% Fe. The high grade nature of the iron ore supports a potential DSO lump and fine product capitalising on high prices for premium grade iron ore.
A 3,000 metre RC drilling programme is scheduled to commence this month to determine the grade and extent of mineralisation and delineate a resource for mining. Strike is also in the process of engaging a Consulting Engineering Group to conduct a Scoping Study to support a 1.0 million tonne per annum mining operation.
Subject to satisfactory completion of drilling and Scoping Study, Strike is targeting a one million tonne per annum mining operation from the Paulsens East Project commencing as early as February 2009 with delivery of iron trucked to the shipping ports of either Onslow or Dampier.
The average came from a sample of 55 rock chip samples collected from the Paulsens East Project in April 2008. The highest returned grade was 67.67% Fe. The high grade nature of the iron ore supports a potential DSO lump and fine product capitalising on high prices for premium grade iron ore.
A 3,000 metre RC drilling programme is scheduled to commence this month to determine the grade and extent of mineralisation and delineate a resource for mining. Strike is also in the process of engaging a Consulting Engineering Group to conduct a Scoping Study to support a 1.0 million tonne per annum mining operation.
Subject to satisfactory completion of drilling and Scoping Study, Strike is targeting a one million tonne per annum mining operation from the Paulsens East Project commencing as early as February 2009 with delivery of iron trucked to the shipping ports of either Onslow or Dampier.
Rajathi Group Expands Into Iron Ore
The Chennai-based Rs 4.4billion Rajathi group, an exporter of agricultural commodities for the past three decades, is now attempting to become a large-scale iron ore exporter. The company is planning to acquire an iron ore mine near Hospet in Karnataka for this purpose.
“We are currently negotiating with an iron company for its acquisition and the deal is expected to be concluded by the end of this month," group's managing director, M Rajesh, told Business Standard.
According to Mr Rajesh, the constant urge to see new frontiers and a matured agro-market led the Rajathi group to enter into iron ore exports and capitalise on the surge in the international demand of iron ore. So far, it has exported close to 500,000 tonnes of iron ore.
The recipient of the largest agro commodity export award from the Union government in 1997, the Rajathi group is also planning to double its exports of farm products in the current year.
Source: Business Standard
“We are currently negotiating with an iron company for its acquisition and the deal is expected to be concluded by the end of this month," group's managing director, M Rajesh, told Business Standard.
According to Mr Rajesh, the constant urge to see new frontiers and a matured agro-market led the Rajathi group to enter into iron ore exports and capitalise on the surge in the international demand of iron ore. So far, it has exported close to 500,000 tonnes of iron ore.
The recipient of the largest agro commodity export award from the Union government in 1997, the Rajathi group is also planning to double its exports of farm products in the current year.
Source: Business Standard
Tata Receives Minerals Prospecting Licences
Tata Steel has received mineral concession approvals from the Ministry of Mines for two large mines - one for iron ore in Jharkhand and the other for chrome ore in Manipur.
Both concessions are prospecting licences (PLs) at this stage and the company would have to apply to the Ministry for mining leases after completion of prospecting work and outlining estimated reserves.
The concession for Jharkhand mine was granted on April 16 and has a total area of 1,808 hectare. The chromite concession in Manipur has a total area of 55.445 sq km. and was granted on April 24.
"Getting a prospecting licence does not necessarily mean that we have won the mine now,” said a company official “even at this point of time, these can be awarded to others, as well. No doubt, since PLs have been awarded to us, we get little priority. We have to submit the prospective reserves in those mines to the Ministry,"
Tata Steel currently sources 100 per cent of its iron ore requirement from its existing captive mines in Jharkhand. However, industry sources pointed out that the Jharkhand iron ore-prospecting lease holds promise of one billion tonnes of high-grade iron ore.
The company is expanding its Jamshedpur plant capacity in Jharkhand to 7 million tons from 5 million tons. Subsequently, it would be raised to 10 mtpa by 2010.
"The iron from the Jharkhand mine, if allocated to us, would be used to feed the brownfield expansions of the firm," he said.
Source: Economic Times
Both concessions are prospecting licences (PLs) at this stage and the company would have to apply to the Ministry for mining leases after completion of prospecting work and outlining estimated reserves.
The concession for Jharkhand mine was granted on April 16 and has a total area of 1,808 hectare. The chromite concession in Manipur has a total area of 55.445 sq km. and was granted on April 24.
"Getting a prospecting licence does not necessarily mean that we have won the mine now,” said a company official “even at this point of time, these can be awarded to others, as well. No doubt, since PLs have been awarded to us, we get little priority. We have to submit the prospective reserves in those mines to the Ministry,"
Tata Steel currently sources 100 per cent of its iron ore requirement from its existing captive mines in Jharkhand. However, industry sources pointed out that the Jharkhand iron ore-prospecting lease holds promise of one billion tonnes of high-grade iron ore.
The company is expanding its Jamshedpur plant capacity in Jharkhand to 7 million tons from 5 million tons. Subsequently, it would be raised to 10 mtpa by 2010.
"The iron from the Jharkhand mine, if allocated to us, would be used to feed the brownfield expansions of the firm," he said.
Source: Economic Times
China Vanadium Exports Continue To Rise
The removal of a 10% export tax is being cited as the main reason behind a huge increase in China’s exports of ferrovanadium. Exports soared to 724.225mt in April compared to just 205.1mt for the same month last year.
Shipments were: 368.475 mt (90 mt in Apr 2007) to Holland; 170 mt (7.1 mt) to Japan; 73 mt (40 mt) to Taiwan and 40 mt (zero mt) to Canada.
However, the imposition of a 10% export tax on V205 exports from 1 January 2008 is being blamed for a more sluggish market for Chinese vanadium pentoxide. Exports for April 2008 were 1,610.9 mt in Apr compared to 1,820.665 mt in Apr 2007. Chief destinations were: 851.3 mt (817.4 mt) to South Korea; 270 mt (291 mt) to Japan; 60.4 mt (428.165 mt) to Rotterdam and 120 mt (40 mt) to Canada.
Nevertheless, in the first four months of 2008 exports were 5, 965.789 mt compared to 5, 833.715 mt in the same period of last year.
Shipments were: 368.475 mt (90 mt in Apr 2007) to Holland; 170 mt (7.1 mt) to Japan; 73 mt (40 mt) to Taiwan and 40 mt (zero mt) to Canada.
However, the imposition of a 10% export tax on V205 exports from 1 January 2008 is being blamed for a more sluggish market for Chinese vanadium pentoxide. Exports for April 2008 were 1,610.9 mt in Apr compared to 1,820.665 mt in Apr 2007. Chief destinations were: 851.3 mt (817.4 mt) to South Korea; 270 mt (291 mt) to Japan; 60.4 mt (428.165 mt) to Rotterdam and 120 mt (40 mt) to Canada.
Nevertheless, in the first four months of 2008 exports were 5, 965.789 mt compared to 5, 833.715 mt in the same period of last year.
China Manganese Ore Imports Increase In April
According to statistics from China Customs, China imported manganese ore 716,138 tons in April 2008 an increase of 39% over April 2007 (515,270 tons) and similar to 712,149 tons in March 2008.
Import value was USD288,118,652 was 4.26 times that of April 2007 and up 6.7% from USD270,060,489 in March 2008.
In the first four months of 2008, China’s import volume of manganese ore increased by 32.7% to 2,509,715 tons, increased by 32.7% .
However, the statistics also show that China’s major manganese ore suppliers all supplied lower quantities in April. Compared to the previous month Australia decreased from 345,947 tons to 213,570 tons, South Africa from 216,344 tons to 175,386 tons, Brazil from 138,741 tons to 37,828 tons. Only Gabon of the major suppliers increased, from 73,300 to 135,705 tons.
Import value was USD288,118,652 was 4.26 times that of April 2007 and up 6.7% from USD270,060,489 in March 2008.
In the first four months of 2008, China’s import volume of manganese ore increased by 32.7% to 2,509,715 tons, increased by 32.7% .
However, the statistics also show that China’s major manganese ore suppliers all supplied lower quantities in April. Compared to the previous month Australia decreased from 345,947 tons to 213,570 tons, South Africa from 216,344 tons to 175,386 tons, Brazil from 138,741 tons to 37,828 tons. Only Gabon of the major suppliers increased, from 73,300 to 135,705 tons.
Chinese FeSi75 Hits $2300 per Tonne
The ferrosilicon market broke through another price barrier this week with export prices of ferrosilicon 75% now being quoted at USD2,300/MT FOB for 1,000MT delivered in June. Meanwhile the domestic ex-work price of ferrosilicon 75% in the Chinese market has been around RMB10,600-10,700/MT.
Traders appear willing to accept high prices with current supply being tight. Some traders have even closed deals at RMB11,000/MT at Tianjin port.
Traders appear willing to accept high prices with current supply being tight. Some traders have even closed deals at RMB11,000/MT at Tianjin port.
Tuesday, May 27, 2008
ICG Acquires Powell Mining Operations
International Coal Group, Inc. has announced that it has acquired the former
Powell Mountain mining operations located in Lee County, Virginia, and
Harlan County, Kentucky. The newly acquired assets include substantial coal holdings that are estimated to include approximately 29 million tons of high quality coal reserves, and 47 million tons of non-reserve coal deposits.
The transactions were concluded through the purchase of the membership
interests of Powdul Acquisition LLC, and the leasing of coal reserves from Dulcet Acquisition LLC, an affiliate of Penn Virginia Resource Partners, L.P
ICG expects to begin coal production from the Darby seam deep
Mine - previously idle in June 2008. The Darby mine coal quality is well suited to service both the compliance utility market and the high-volatile metallurgical market. ICG projects that, at full production, this mining complex will produce and ship over one million tons of coal annually.
Terms of the transaction were not disclosed.
Powell Mountain mining operations located in Lee County, Virginia, and
Harlan County, Kentucky. The newly acquired assets include substantial coal holdings that are estimated to include approximately 29 million tons of high quality coal reserves, and 47 million tons of non-reserve coal deposits.
The transactions were concluded through the purchase of the membership
interests of Powdul Acquisition LLC, and the leasing of coal reserves from Dulcet Acquisition LLC, an affiliate of Penn Virginia Resource Partners, L.P
ICG expects to begin coal production from the Darby seam deep
Mine - previously idle in June 2008. The Darby mine coal quality is well suited to service both the compliance utility market and the high-volatile metallurgical market. ICG projects that, at full production, this mining complex will produce and ship over one million tons of coal annually.
Terms of the transaction were not disclosed.
Rohit Looks For Further Expansion
Ferro alloy producer Rohit Ferro Tech Ltd (RFTL) plans to diversify as a mining player in the next couple of years.
The company, which recently acquired coal mines in Indonesia, is on the lookout for chrome ore and manganese mines in Iran and Oman and in the domestic market in India.
Ankit Patni, joint managing director, RFTL, said, “We have entered mining through our acquisition in Indonesia and looking at having a sustainable and sizeable interest in mining business in some years.”
He said the company is targeting a 100% raw material security in the next five to six years and will look at opportunities both in India and abroad. Though RFTL has not earmarked standard set of funds for investing in the mining business, Patni said the company is well positioned to grasp any upcoming opportunity.
He said RFTL is looking beyond captive consumption of raw materials and would like to sell off-takes in the open market as well. Currently, the company has expressed interest in some chrome ore and manganese ore mines in India; the application is pending with the government.
“We will look at acquiring mines wherever we can see some synergy with our present business and our future plans,” Patni said.
Source: Daily News and Analysis, Mumbai
Minerals and Metals at www.minerals-and-metals.com
The company, which recently acquired coal mines in Indonesia, is on the lookout for chrome ore and manganese mines in Iran and Oman and in the domestic market in India.
Ankit Patni, joint managing director, RFTL, said, “We have entered mining through our acquisition in Indonesia and looking at having a sustainable and sizeable interest in mining business in some years.”
He said the company is targeting a 100% raw material security in the next five to six years and will look at opportunities both in India and abroad. Though RFTL has not earmarked standard set of funds for investing in the mining business, Patni said the company is well positioned to grasp any upcoming opportunity.
He said RFTL is looking beyond captive consumption of raw materials and would like to sell off-takes in the open market as well. Currently, the company has expressed interest in some chrome ore and manganese ore mines in India; the application is pending with the government.
“We will look at acquiring mines wherever we can see some synergy with our present business and our future plans,” Patni said.
Source: Daily News and Analysis, Mumbai
Minerals and Metals at www.minerals-and-metals.com
Sponge Iron Prices Continue To Fall
Despite buyers' apprehension on placing fresh orders ahead of the monsoon season, prices of sponge iron, an important raw material for steel manufacturing, is unlikely to decline from its current levels.
Sponge iron or direct reduced iron, being quoted at Rs 18,000 per tonne, have seen around 14 per cent fall in the last one month because of subdued raw material prices and market switching to need-based buying instead of creating inventory.
"An independent sponge iron producer cannot afford selling below current levels," said Amitabh Mudgal, general manager (marketing), Monnet Ispat, one of the largest sponge iron suppliers to steel producers.
At least 1.5-2 tonnes each of iron ore and coal are required to produce one tonne of good quality sponge iron. Although the price of iron ore has declined by 10-12 per cent in the last month, price of coking coal is continuously moving upwards.
Iron ore fines are quoted in the range of $90-100 per tonne. Coking coal has risen from $130 to $300 a tonne in the last three to four months, while coke has doubled to $600 a tonne since the beginning of the year.
At a minimum margin of 10-15 per cent, the current level is the cut-off price for an independent producer. Therefore, there is hardly any room for sponge iron prices to fall further, said Mr Mudgal.
Sponge iron producers operate with a margin of 13-18 per cent, depending upon the cost of iron ore and coal supplies.
On Monday, buyers booked only to meet daily needs anticipating the price to decline. Those who are waiting for a fresh bottom level would be trapped, added Mr Mudgal.
Placing multiple orders for future consumption is a common phenomenon for the sponge iron industry. But, because of a price decline in recent past, traders are abstaining from multiple orders. Therefore, the pipeline inventory has been disrupted abnormally.
India produces about 50 million tonnes of steel annually, while consumption stays around 51 million tonnes. He said domestic buyers remained untouched despite contracted value of iron ore between Indian exporters and Chinese importers going down from $175-180 a tonne last November to $140-145 now.
Chinese traders slowed down orders when prices start moving up. As a consequence, the pressure of stock clearance forced exporters to bring down prices. "Hence, the Chinese contracted price cannot be a correct indicator for real market sentiment," said Mudgal.
India produced 16.28 million tonnes of sponge iron in 2006-07, of which, 5.26 million tonnes was contributed by gas-based variety and 11.01 million tonnes by coal-based one.
Source: Business Standard
Minerals and Metals at http://www.minerals-and-metals.com/
Sponge iron or direct reduced iron, being quoted at Rs 18,000 per tonne, have seen around 14 per cent fall in the last one month because of subdued raw material prices and market switching to need-based buying instead of creating inventory.
"An independent sponge iron producer cannot afford selling below current levels," said Amitabh Mudgal, general manager (marketing), Monnet Ispat, one of the largest sponge iron suppliers to steel producers.
At least 1.5-2 tonnes each of iron ore and coal are required to produce one tonne of good quality sponge iron. Although the price of iron ore has declined by 10-12 per cent in the last month, price of coking coal is continuously moving upwards.
Iron ore fines are quoted in the range of $90-100 per tonne. Coking coal has risen from $130 to $300 a tonne in the last three to four months, while coke has doubled to $600 a tonne since the beginning of the year.
At a minimum margin of 10-15 per cent, the current level is the cut-off price for an independent producer. Therefore, there is hardly any room for sponge iron prices to fall further, said Mr Mudgal.
Sponge iron producers operate with a margin of 13-18 per cent, depending upon the cost of iron ore and coal supplies.
On Monday, buyers booked only to meet daily needs anticipating the price to decline. Those who are waiting for a fresh bottom level would be trapped, added Mr Mudgal.
Placing multiple orders for future consumption is a common phenomenon for the sponge iron industry. But, because of a price decline in recent past, traders are abstaining from multiple orders. Therefore, the pipeline inventory has been disrupted abnormally.
India produces about 50 million tonnes of steel annually, while consumption stays around 51 million tonnes. He said domestic buyers remained untouched despite contracted value of iron ore between Indian exporters and Chinese importers going down from $175-180 a tonne last November to $140-145 now.
Chinese traders slowed down orders when prices start moving up. As a consequence, the pressure of stock clearance forced exporters to bring down prices. "Hence, the Chinese contracted price cannot be a correct indicator for real market sentiment," said Mudgal.
India produced 16.28 million tonnes of sponge iron in 2006-07, of which, 5.26 million tonnes was contributed by gas-based variety and 11.01 million tonnes by coal-based one.
Source: Business Standard
Minerals and Metals at http://www.minerals-and-metals.com/
West Australian Iron Ore Companies in $A3billion Merger
Two major iron ore companies in Western Australia have agreed to a $A3 billion merger.
Both Midwest Corporation and Murchison Metals have neighbouring iron ore tenements and would collectively own eight projects in the region.Midwest has supply arrangements with Chinese Steel trader Sinosteel, while Murchison Metals has agreements with Japan's Mitsubishi group.
The merged entity would value each share at $A7.17.
Paul Kopejka, from Murchison Metals, says the merger will help turn the Mid-West region into a world-class iron ore producing region.
Sinosteel itself had previously offered $A1.36billion in cash for Midwest
Sources: ABC, Sydney Morning Herald
Minerals and Metals at http://www.minerals-and-metals.com/
Both Midwest Corporation and Murchison Metals have neighbouring iron ore tenements and would collectively own eight projects in the region.Midwest has supply arrangements with Chinese Steel trader Sinosteel, while Murchison Metals has agreements with Japan's Mitsubishi group.
The merged entity would value each share at $A7.17.
Paul Kopejka, from Murchison Metals, says the merger will help turn the Mid-West region into a world-class iron ore producing region.
Sinosteel itself had previously offered $A1.36billion in cash for Midwest
Sources: ABC, Sydney Morning Herald
Minerals and Metals at http://www.minerals-and-metals.com/
Chinese Vanadium Prices Continue To Rise
Prices for vanadium in China continued their upward surge on Monday with demand remaining strong. Ferroalloys.com reported that the current domestic ex-work prices for ferrovanadium (50#) and vanadium pentoxide are up to RMB245,000-255,000/mt and RMB220, 000-223,000/mt respectively. Export prices are also increasing.
Chinese producers have indicated that they have to adjust offers upwards on a daily basis with some sellers predicting further price peaks.
Minerals and Metals at www.minerals-and-metals.com
Chinese producers have indicated that they have to adjust offers upwards on a daily basis with some sellers predicting further price peaks.
Minerals and Metals at www.minerals-and-metals.com
China Nickel Ore Imports Soar
According to Customs Statistics of China, China import volumes of nickel ores was 1.99 million MT in April, an increase of 35.7% over March. The average price paid was USD173/mt.
Indonesia was the largest source with 1.41million MT followed by the Philippines with 0.48million MT, New Caledonia with 50,000MT, Australia with 17,000MT and Botswana with 14,000MT.
Imports of 5.55 million MT of nickel ores for the first four months of 2008 rose by 44% compared with the same period in 2007.
Current stocks of nickel ores in Chinese ports have reached 7.8 million MT in China leading to suggestions that the government should consider adopting import controls.
Minerals and Metals at www.minerals-and-metals.com
Indonesia was the largest source with 1.41million MT followed by the Philippines with 0.48million MT, New Caledonia with 50,000MT, Australia with 17,000MT and Botswana with 14,000MT.
Imports of 5.55 million MT of nickel ores for the first four months of 2008 rose by 44% compared with the same period in 2007.
Current stocks of nickel ores in Chinese ports have reached 7.8 million MT in China leading to suggestions that the government should consider adopting import controls.
Minerals and Metals at www.minerals-and-metals.com
Bemax Succumbs To Saudi Offer
The Saudi titanium producer, Cristal Titanium, looks set to take over Australian mineral sands miner Bemax, after its 32 cents a share offer was accepted by Bemax's board. The bid values Bemax at $A300 million and is a 45% premium to Bemax's closing price on Friday.
Cristal already owned more than a third of Bemax and was looking to secure full ownership of the world's sixth biggest supplier of rutile, a key ingredient in titanium production.
Bemax said it had appointed Lonergan Edwards to prepare a report as to the fairness and reasonableness of Cristal’s offer.
Cristal presently holds a 34.54% stake in Bemax, and made the offer through its wholly owned subsidiary Cristal Australia Pty Ltd.
The directors of Bemax had advised shareholders that early acceptance of the offer would not entitle them to be paid earlier, “Bemax shareholders will only be entitled to receive cash for their Bemax shares once the offer becomes unconditional,” the company said in a statement, “Each of the Bemax directors intends to accept the Cristal offer, in the absence of a superior proposal.”
Bemax said it would now commence preparation of its target statement, to be provided alongside the report by Lonergan Edwards.
The Cristal offer is subject to a number of conditions, including a 90 % minimum acceptance
Source: ABC, Egoli
Minerals and Metals at www.minerals-and-metals.com
Cristal already owned more than a third of Bemax and was looking to secure full ownership of the world's sixth biggest supplier of rutile, a key ingredient in titanium production.
Bemax said it had appointed Lonergan Edwards to prepare a report as to the fairness and reasonableness of Cristal’s offer.
Cristal presently holds a 34.54% stake in Bemax, and made the offer through its wholly owned subsidiary Cristal Australia Pty Ltd.
The directors of Bemax had advised shareholders that early acceptance of the offer would not entitle them to be paid earlier, “Bemax shareholders will only be entitled to receive cash for their Bemax shares once the offer becomes unconditional,” the company said in a statement, “Each of the Bemax directors intends to accept the Cristal offer, in the absence of a superior proposal.”
Bemax said it would now commence preparation of its target statement, to be provided alongside the report by Lonergan Edwards.
The Cristal offer is subject to a number of conditions, including a 90 % minimum acceptance
Source: ABC, Egoli
Minerals and Metals at www.minerals-and-metals.com
Fushan International Energy To Purchase Three Coking Coal Mines
Hong Kong-listed Fushan International Energy Group Ltd has announced that it aims to acquire the 7.5% stake in Fulong Group held by Mr Wang Liping, the president of Fushan Energy. The move would help the company achieve its plan to purchase three coking coal mines owned by Fulong Group.
The three coking coal mines are Liulin Xingwu coal mining co, Liulin Jinjiazhuang coal mining co and Liulin Zhaiyadi coal mining co all located in Shanxi, China’s largest coal-producing province. The three mines have operated for 40 years, 12 years and 10 years respectively with current capacity of 1.2 million tonnes per year, 1.2 million tonnes per year and 2.1 million tonnes per year. As at the end of 2007, the total reserves of the three mines were estimated to be 205 million tonnes with proved reserve of 45.21 million tonnes.
Fushan Energy said that HKD 4.86 billion of the total HKD 10.5billion will be paid in cash by issuing new shares, bank financing and the company's internal capital, while the remaining HKD 5.67 billion will be paid by issuing 1.26 billion consideration shares at HKD 4.5 per share. It said that the fast growing domestic steel and coke industry would bring heavy demand for coking coal.
Source: Steel Guru
Minerals and Metals at www.minerals-and-metals.com
The three coking coal mines are Liulin Xingwu coal mining co, Liulin Jinjiazhuang coal mining co and Liulin Zhaiyadi coal mining co all located in Shanxi, China’s largest coal-producing province. The three mines have operated for 40 years, 12 years and 10 years respectively with current capacity of 1.2 million tonnes per year, 1.2 million tonnes per year and 2.1 million tonnes per year. As at the end of 2007, the total reserves of the three mines were estimated to be 205 million tonnes with proved reserve of 45.21 million tonnes.
Fushan Energy said that HKD 4.86 billion of the total HKD 10.5billion will be paid in cash by issuing new shares, bank financing and the company's internal capital, while the remaining HKD 5.67 billion will be paid by issuing 1.26 billion consideration shares at HKD 4.5 per share. It said that the fast growing domestic steel and coke industry would bring heavy demand for coking coal.
Source: Steel Guru
Minerals and Metals at www.minerals-and-metals.com
Monday, May 26, 2008
Novelis To Invest US$30million In Brazilian Aluminium Operations
Novelis Inc. has announced that it will invest more than US$30 million in its operations in Brazil over the next 18 months in a number of projects designed to increase production capacity and introduce new technology.
Close to $21 million will be invested in process technology and equipment improvements at the company's aluminium rolling mill and recycling
complex at Pindamonhangaba. The improvements will increase the plant's rolling capacity to 400,000 metric tons per year and will increase its annual capacity for aluminium recycling from 80,000 to 150,000 metric tons.
The company also announced that it will invest $4.6 million at the Ouro Preto plant to install its Novelis Fusion solidification technology for the production of aluminium sheet ingots with multiple alloy layers. These multi-alloy ingots can be rolled into sheet products with previously unattainable product features.
Novelis will also invest $4.7 million in an information technology project aimed at integrating and unifying its current operating systems in Brazil in a pilot project which will later be implemented in the company's operations worldwide.
It is also to pursue a project to expand its hydroelectric generating capacity in Brazil. Public hearings are currently under way on a proposed 23 MW development in Nova Brito, in the state of Minas Gerais. The company currently operates nine hydro-power plants in the state with a total installed generating capacity of 117 MW.
Novelis employs approximately 2,000 people throughout Brazil and is the leading producer of aluminium rolled products in South America.
Source: Novelis
Minerals and Metals at www.minerals-and-metals.com
Close to $21 million will be invested in process technology and equipment improvements at the company's aluminium rolling mill and recycling
complex at Pindamonhangaba. The improvements will increase the plant's rolling capacity to 400,000 metric tons per year and will increase its annual capacity for aluminium recycling from 80,000 to 150,000 metric tons.
The company also announced that it will invest $4.6 million at the Ouro Preto plant to install its Novelis Fusion solidification technology for the production of aluminium sheet ingots with multiple alloy layers. These multi-alloy ingots can be rolled into sheet products with previously unattainable product features.
Novelis will also invest $4.7 million in an information technology project aimed at integrating and unifying its current operating systems in Brazil in a pilot project which will later be implemented in the company's operations worldwide.
It is also to pursue a project to expand its hydroelectric generating capacity in Brazil. Public hearings are currently under way on a proposed 23 MW development in Nova Brito, in the state of Minas Gerais. The company currently operates nine hydro-power plants in the state with a total installed generating capacity of 117 MW.
Novelis employs approximately 2,000 people throughout Brazil and is the leading producer of aluminium rolled products in South America.
Source: Novelis
Minerals and Metals at www.minerals-and-metals.com
Chinese Silicon Metal Prices Increase Following Effects Of Earthquake
Prices of silicon metal increased over the past week as the effects of the Sichuan earthquake became clear. Dujiangyan and Aba, two of the main production bases for silicon metal, are within the quake-stricken area. Many enterprises have been forced to suspend production while others have had difficulty purchasing raw materials due to transport problems in the stricken region. As a result some traders have used this as an opportunity to raise silicon metal quotes. Bad weather in Sichuan and Yunnan in recent days has meant that post-quake equipment inspections have not been able to take place thus postponing a resumption in production.
Another reason for the rising price is the increasing price of raw materials such as petroleum coke and graphite electrode, the domestic price of petroleum coke price has risen to RMB2,400-2,550/mt.
The export price of silicon metal also increased last week with prices around USD2,200-2,250/mt, and USD2,250-2,300/mt for 441#.
Report: http://www.ferroalloys.com/
Minerals and metals at http://www.minerals-and-metals.com/
Another reason for the rising price is the increasing price of raw materials such as petroleum coke and graphite electrode, the domestic price of petroleum coke price has risen to RMB2,400-2,550/mt.
The export price of silicon metal also increased last week with prices around USD2,200-2,250/mt, and USD2,250-2,300/mt for 441#.
Report: http://www.ferroalloys.com/
Minerals and metals at http://www.minerals-and-metals.com/
Chinese Chrome Prices Fall As Imports Hit New Record
Statistics relased by Customs in China show that in April China imported 663,000MT of chrome ore, a new monthly record, this despite chrome ore inventories at Lianyun, Shanghai and Tianjin being above 600,000MT.
Overall domestic prices fell over the past week, the main reasons being the off-season for stainless steel and high stocks. www.ferroalloys.com considers the downside for the current chrome market to be no more than 30% and as a key component of stainless steel there will be a later upside.
Report: http://www.ferroalloys.com/
Minerals and metals at www.minerals-and-metals.com
Overall domestic prices fell over the past week, the main reasons being the off-season for stainless steel and high stocks. www.ferroalloys.com considers the downside for the current chrome market to be no more than 30% and as a key component of stainless steel there will be a later upside.
Report: http://www.ferroalloys.com/
Minerals and metals at www.minerals-and-metals.com
Electrolytic Manganese Prices Remain Stable Despite Earthquake
Chinese export prices for electrolytic manganese metal inches rose slightly over the past week into the USD4,400-4,500/mt (FOB) range, as the earthquake in Sichuan province was found not to have had a direct influence on production. However, despite transport difficulties and problems caused by an erratic power supply in some areas, some sellers still expect the price to continue on an upward trend in the near future.
Generally speaking, high production costs rather than demand have been behind recent price rises; the prices of raw materials are increasing steadily with the sulphuric acid price breaking through RMB1,800/mt barrier, while the price of manganese carbonate powders stands at RMB1,200/mt. Nevertheless overall demand for electrolytic manganese is described as 'dull'.
Report: www.ferroalloys.com
Generally speaking, high production costs rather than demand have been behind recent price rises; the prices of raw materials are increasing steadily with the sulphuric acid price breaking through RMB1,800/mt barrier, while the price of manganese carbonate powders stands at RMB1,200/mt. Nevertheless overall demand for electrolytic manganese is described as 'dull'.
Report: www.ferroalloys.com
Zimbabwean Coke Company Set For Expansion
Zimbabwe’s Chinese-owned coke processing company, South Mining Company, has embarked on an expansion programme aimed at increasing production with the construction of the third coke oven underway.
In an interview with the Zimbabwean newspaper Sunday Business last week, the firm’s vice general manager, Mr Xuhong Guang, said they began construction of the third oven in March immediately after the completion of the second oven although work at the Madumabisa site is presently on hold owing to the unavailability of building material.
“We ordered some clear bricks from Clay Products but they are still to supply, it’s about a month now,” Mr Guang said. Even so he expects the third oven is expected to be completed next month.
In January, the Chinese company made an application to the Hwange Rural District Council (HRDC) to extend their operational space from three to nine hectares which they were later granted after physical planners made approvals for further developments to proceed. This followed an environment impact assessment at the site.
South Mining Company embarked on an expansion programme to increase production. Prior to the construction of the second oven, the first oven produced about 40 000 tonnes of coke per day but with the second oven on board, production is hovering between 60 000 and 70 000 tonnes per day. Upon the completion of the third oven production is expected to scale up to around 100 000 tonnes a day.
“On average we are now producing between 60 000 to 70 000 tonnes per day and we are satisfied with the deliveries we are receiving from Hwange Colliery Company though sometimes they face difficulties due to break down of machinery,” Mr Guang said. The company exports its coke to its copper manufacturing company in Lubambashi in the Democratic Republic of Congo.
It purchases washed duff coal from the country’s leading coal producer (HCC). Washed duff is one of the smallest types of coal, which measures 0.5 millimetres to less than seven millimetres in diameter. HCC also owns a coke processing plant which houses the state-of-the-art coke oven battery where 18 ovens convert raw coking coal into coke.
Some of the by-products produced at the processing and coke plant include benzole tar, coke oven gas, crude tar and benzole, which are sold in crude form to Zimchem Refineries.
The coke oven gas (COG) is mainly produced and cleaned in the by-product plant to provide fuel and as a reducing agent in smelting iron ore in a blast furnace.
The mainstream market for coke is the metallurgical industry where coke is marketed in three broad categories, namely foundry coke, metallurgical coke and coke peas. Coke breeze is normally marketed to brick manufacturers.
Source: Sunday News, Zimbabwe
Minerals and Metals at www.minerals-and-metals.com
In an interview with the Zimbabwean newspaper Sunday Business last week, the firm’s vice general manager, Mr Xuhong Guang, said they began construction of the third oven in March immediately after the completion of the second oven although work at the Madumabisa site is presently on hold owing to the unavailability of building material.
“We ordered some clear bricks from Clay Products but they are still to supply, it’s about a month now,” Mr Guang said. Even so he expects the third oven is expected to be completed next month.
In January, the Chinese company made an application to the Hwange Rural District Council (HRDC) to extend their operational space from three to nine hectares which they were later granted after physical planners made approvals for further developments to proceed. This followed an environment impact assessment at the site.
South Mining Company embarked on an expansion programme to increase production. Prior to the construction of the second oven, the first oven produced about 40 000 tonnes of coke per day but with the second oven on board, production is hovering between 60 000 and 70 000 tonnes per day. Upon the completion of the third oven production is expected to scale up to around 100 000 tonnes a day.
“On average we are now producing between 60 000 to 70 000 tonnes per day and we are satisfied with the deliveries we are receiving from Hwange Colliery Company though sometimes they face difficulties due to break down of machinery,” Mr Guang said. The company exports its coke to its copper manufacturing company in Lubambashi in the Democratic Republic of Congo.
It purchases washed duff coal from the country’s leading coal producer (HCC). Washed duff is one of the smallest types of coal, which measures 0.5 millimetres to less than seven millimetres in diameter. HCC also owns a coke processing plant which houses the state-of-the-art coke oven battery where 18 ovens convert raw coking coal into coke.
Some of the by-products produced at the processing and coke plant include benzole tar, coke oven gas, crude tar and benzole, which are sold in crude form to Zimchem Refineries.
The coke oven gas (COG) is mainly produced and cleaned in the by-product plant to provide fuel and as a reducing agent in smelting iron ore in a blast furnace.
The mainstream market for coke is the metallurgical industry where coke is marketed in three broad categories, namely foundry coke, metallurgical coke and coke peas. Coke breeze is normally marketed to brick manufacturers.
Source: Sunday News, Zimbabwe
Minerals and Metals at www.minerals-and-metals.com
Sunday, May 25, 2008
Coal India Seeking To Develop Abandoned Mines
Coal India Ltd (CIL) is all set to float global tenders within a month for developing 26 abandoned mines on a joint venture basis. Speaking at a fringe meeting organised by National Institute of Personnel Management (NIPM), CIL chairman Partha S Bhattarcharya said that the 26 mines with an expected coal reserves of around 10 million tonnes (mt) were already identified. Of these, around 10 mines are expected to be rich in coking coal, while the others will produce non-coking coal varieties.
CIL will be floating expressions of interest (EOI) to invite global technology providers to develop these mines on a joint venture basis with CIL, added Mr Bhattacharya.
This apart, Bharat Coking Coal Limited (BCCL) fixed the rates for selling coking coal to Steel Authority Of India Limited (SAIL) at Rs 6,300 per tonne for this fiscal year as against Rs 4,500 per tonne in 2007-08. BCCL supplied 1.62 million tonnes of washed coking coal to SAIL last year against its demand of 1.82 million tonnes. It currently produces 2 million tonnes per annum. It is open to selling more to SAIL provided BCCL's production hikes up, Mr Bhattacharya said. In 2008-09, BCCL targets coking coal production of 4.38 million tonnes and this coal, when washed, will yield around 2.19 million tonnes
According to industry sources, BCCL meets nearly 20 per cent of SAIL's annual coking coal requirement and the revised rates could have a positive impact on the company's balance sheet.
CIL will also be floating EOIs to invite bidders for contract mining for seven of its underground mines within this year. CIL would use state-of-the art technology to increase production.
Source: Business Standard
Minerals and Metals at www.minerals-and-metals.com
CIL will be floating expressions of interest (EOI) to invite global technology providers to develop these mines on a joint venture basis with CIL, added Mr Bhattacharya.
This apart, Bharat Coking Coal Limited (BCCL) fixed the rates for selling coking coal to Steel Authority Of India Limited (SAIL) at Rs 6,300 per tonne for this fiscal year as against Rs 4,500 per tonne in 2007-08. BCCL supplied 1.62 million tonnes of washed coking coal to SAIL last year against its demand of 1.82 million tonnes. It currently produces 2 million tonnes per annum. It is open to selling more to SAIL provided BCCL's production hikes up, Mr Bhattacharya said. In 2008-09, BCCL targets coking coal production of 4.38 million tonnes and this coal, when washed, will yield around 2.19 million tonnes
According to industry sources, BCCL meets nearly 20 per cent of SAIL's annual coking coal requirement and the revised rates could have a positive impact on the company's balance sheet.
CIL will also be floating EOIs to invite bidders for contract mining for seven of its underground mines within this year. CIL would use state-of-the art technology to increase production.
Source: Business Standard
Minerals and Metals at www.minerals-and-metals.com
Rohit Ferro Buys Stakes In Indonesian Coal Mines
Indian ferroalloy major Rohit Ferro-Tech Ltd has announced that it will acquire a 60% stake in each of two Indonesian coal mining companies held by PT Pacific Samudra Perkasa. In a regulatory filing, Rohit Ferro said its Singapore-based subsidiary, SKP Overseas Pte Ltd has signed a memorandum of understanding with PT Pacific Samudra Perkasa to acquire the interests in PT Palopo Indah Rava and PT Bara Prima Mandiri. It added that both companies have mining concessions and related licenses in the Central Kalimantan area, with Rava holding reserves of about 20 million tonnes of thermal coal and Mandiri holding 5 million tonnes of coking coal. Production from the first mine will begin in July while the second mine will begin production in July 2009.
Mr Ankit Patni joint MD of Rohit Ferro told Thomson Financial News that “Rohit Ferro will acquire 60% of the companies output at preferential rates and will bear 60% of the costs.”
Rohit Ferro will use coal from these mines for making ferroalloys and for its proposed captive 110 MW power plant expected to be commissioned by June 2009. Part of the coal from these mines will also be used for external sales.
Rohit Ferro currently uses over 125,000 tonnes annually of coking coal and will require about 300,000 to 400,000 tonnes of thermal coal for power plant.
Rohit Ferro was incorporated in April 2000 under the aegis of Impex Group having interest in manufacturing, trading, import & export of various kinds of ferroalloys and has total combined capacity of more than 175,000 tonnes per annum.
Source: Steel Guru
Minerals and Metals at www.minerals-and-metals.com
Mr Ankit Patni joint MD of Rohit Ferro told Thomson Financial News that “Rohit Ferro will acquire 60% of the companies output at preferential rates and will bear 60% of the costs.”
Rohit Ferro will use coal from these mines for making ferroalloys and for its proposed captive 110 MW power plant expected to be commissioned by June 2009. Part of the coal from these mines will also be used for external sales.
Rohit Ferro currently uses over 125,000 tonnes annually of coking coal and will require about 300,000 to 400,000 tonnes of thermal coal for power plant.
Rohit Ferro was incorporated in April 2000 under the aegis of Impex Group having interest in manufacturing, trading, import & export of various kinds of ferroalloys and has total combined capacity of more than 175,000 tonnes per annum.
Source: Steel Guru
Minerals and Metals at www.minerals-and-metals.com
Chinese Ports To Hike Iron Ore Storage Prices
Chinese ports will significantly raise iron ore storage fees effective 1 June, in an effort to clear the record stockpiles of ore at the ports. Traders said major ports have informed the relevant firms of the new fees, which are at least double the current standards.
At the Tianjin port, the new fees for iron ore imports are CNY0.40 ($A0.06) per tonne per day for stocking periods longer than 90 days, CNY0.2 per tonne per day for 60-90 days and CNY0.1 per tonne per day for less than 60 days, while the first 30 days are exempt from any storage fees, according to a notice from the port seen by Dow Jones Newswires. "For those iron ore imports that are moved from the port before June 1, the storage fees will follow the earlier standards," the notice said.
Analysts said that the move is likely to help clear the record stockpiles at ports, as it significantly raises the costs to trading firms, and it will help to bring down spot iron ore prices as well - as the Chinese government hopes. China's National Development and Reform Commission, the country's top economic planner, held a joint meeting last week with government departments, steel mills, and trading firms to discuss how to clear the record high stockpiles. The China Iron & Steel Association has also asked its member companies to clear stocks at the ports and control further imports.
The measures are believed to be part of the Chinese government's latest efforts to increase the bargaining power of Chinese steel mills in talks with miners BHP Billiton and Rio Tinto on iron ore prices.
Source: The Australian
Minerals And Metals at www.minerals-and-metals.com
At the Tianjin port, the new fees for iron ore imports are CNY0.40 ($A0.06) per tonne per day for stocking periods longer than 90 days, CNY0.2 per tonne per day for 60-90 days and CNY0.1 per tonne per day for less than 60 days, while the first 30 days are exempt from any storage fees, according to a notice from the port seen by Dow Jones Newswires. "For those iron ore imports that are moved from the port before June 1, the storage fees will follow the earlier standards," the notice said.
Analysts said that the move is likely to help clear the record stockpiles at ports, as it significantly raises the costs to trading firms, and it will help to bring down spot iron ore prices as well - as the Chinese government hopes. China's National Development and Reform Commission, the country's top economic planner, held a joint meeting last week with government departments, steel mills, and trading firms to discuss how to clear the record high stockpiles. The China Iron & Steel Association has also asked its member companies to clear stocks at the ports and control further imports.
The measures are believed to be part of the Chinese government's latest efforts to increase the bargaining power of Chinese steel mills in talks with miners BHP Billiton and Rio Tinto on iron ore prices.
Source: The Australian
Minerals And Metals at www.minerals-and-metals.com
European Nickel Expands In Philippines
European Nickel Plc has said that it will pay $48 million in cash and shares for interests in nickel projects in the Philippines. The company will acquire a 19.3% stake in Toledo Mining Corp. and an 18.7% direct interest in Berong Nickel Corp., London-based European Nickel said yesterday in a statement. European Nickel will have an effective 29.5% stake in Berong since Toledo owns a 56% interest in Berong.
Atlas Mining Corp., a major copper mining company owned by businessman Alfredo Ramos, holds an interest in both Toledo and Berong. Philex Mining Inc., a major gold mining company, also partly owns Berong.
European Nickel said it acquired the 19.3% interest in Toledo from Investika Ltd., Chris Kyriakou, chairman of Investika and Toledo Mining, and Murray Morgan Investments Ltd. It also bought from Investika the 18.7% direct interest in Berong Nickel.
Shares in European Nickel rose to their highest level in almost three months in London trading after agreeing to buy stakes in the Philippine nickel projects.
The Berong project, operated by Toledo, ships so-called laterite nickel ore from the Philippines to BHP’s Yabulu plant in Australia and to Chinese buyers, who refine it into nickel used for stainless steel. Berong Nickel owns two other deposits and interests in the Ipilan and Ulugan projects.
Toledo, led by former Rio Tinto Group executive George Bujtor, estimates the deposits contain 375 million metric tons of ore with a nickel content of 4.9 million tons.
European Nickel has a joint venture with Rusina Mining NL to ship ore from the Acoje deposit in the Philippines to China and is waiting for a permit to complete its Caldag nickel project in Turkey. The Caldag project has a mineable reserve of 33.2 million tons with a grade of 1.13 percent nickel containing over 255,000 tons of recoverable nickel. The company’s projects in the Philippines and Albania are at the pre-feasibility study stage.
The company also holds exploration properties in Turkey, Serbia and Albania, and has an active exploration program to identify further properties in the Balkan region.
Source: Manila Standard
Minerals and Metals at www.minerals-and-metals.com
Atlas Mining Corp., a major copper mining company owned by businessman Alfredo Ramos, holds an interest in both Toledo and Berong. Philex Mining Inc., a major gold mining company, also partly owns Berong.
European Nickel said it acquired the 19.3% interest in Toledo from Investika Ltd., Chris Kyriakou, chairman of Investika and Toledo Mining, and Murray Morgan Investments Ltd. It also bought from Investika the 18.7% direct interest in Berong Nickel.
Shares in European Nickel rose to their highest level in almost three months in London trading after agreeing to buy stakes in the Philippine nickel projects.
The Berong project, operated by Toledo, ships so-called laterite nickel ore from the Philippines to BHP’s Yabulu plant in Australia and to Chinese buyers, who refine it into nickel used for stainless steel. Berong Nickel owns two other deposits and interests in the Ipilan and Ulugan projects.
Toledo, led by former Rio Tinto Group executive George Bujtor, estimates the deposits contain 375 million metric tons of ore with a nickel content of 4.9 million tons.
European Nickel has a joint venture with Rusina Mining NL to ship ore from the Acoje deposit in the Philippines to China and is waiting for a permit to complete its Caldag nickel project in Turkey. The Caldag project has a mineable reserve of 33.2 million tons with a grade of 1.13 percent nickel containing over 255,000 tons of recoverable nickel. The company’s projects in the Philippines and Albania are at the pre-feasibility study stage.
The company also holds exploration properties in Turkey, Serbia and Albania, and has an active exploration program to identify further properties in the Balkan region.
Source: Manila Standard
Minerals and Metals at www.minerals-and-metals.com
Tungsten And Fluorspar JV Agreed For Vietnam
Foreign banks Bayerische Hypo-und Vereinsbank and Fortis are to provide a credit of USD250 million to fund Vietnam’s largest tungsten and fluorspar mining project in Thai Nguyen province in the north of the country.
The credit deal was signed on May 23 by the banks and the Nui Phao Joint Venture Mining Company Ltd. (Nuiphaovica), an enterprise set up by Canada’s Tiberon Minerals Ltd. and Vietnamese partners, the Thai Nguyen Minerals Company and the Thai Nguyen Export-Import Investment Company.
Nuiphaovica has been working with local authorities since 2004 to prepare for the project, including site clearance and compensation. The first batches of minerals are scheduled to be mined in September 2010.
Total investment for the project is estimated to exceed USD300 million, of which two-thirds is contributed by Tiberon Minerals Ltd. and the rest by the two local companies.
Source: VietnamNet
Minerals and Metals at www.minerals-and-metals.com
The credit deal was signed on May 23 by the banks and the Nui Phao Joint Venture Mining Company Ltd. (Nuiphaovica), an enterprise set up by Canada’s Tiberon Minerals Ltd. and Vietnamese partners, the Thai Nguyen Minerals Company and the Thai Nguyen Export-Import Investment Company.
Nuiphaovica has been working with local authorities since 2004 to prepare for the project, including site clearance and compensation. The first batches of minerals are scheduled to be mined in September 2010.
Total investment for the project is estimated to exceed USD300 million, of which two-thirds is contributed by Tiberon Minerals Ltd. and the rest by the two local companies.
Source: VietnamNet
Minerals and Metals at www.minerals-and-metals.com
Kagara Commences Construction On New Facility
Australian miner Kagara Ltd has announced that construction has commenced on the Mungana treatment plant near Chillagoe in the far north of Queensland.
This treatment facility will more than double zinc production to 100,000 tonnes of contained zinc resulting in a significant reduction in cash costs per pound of zinc production.
The plant remains on target to achieve full production by April 2009 and the initial feed will be sourced from the underground Mungana ore body which has been fully developed to below the first mining panel over the last two years.
Minerals and metals at www.minerals-and-metals.com
This treatment facility will more than double zinc production to 100,000 tonnes of contained zinc resulting in a significant reduction in cash costs per pound of zinc production.
The plant remains on target to achieve full production by April 2009 and the initial feed will be sourced from the underground Mungana ore body which has been fully developed to below the first mining panel over the last two years.
Minerals and metals at www.minerals-and-metals.com
Nippon Steel In Deadlock Over Iron Ore Price
Nippon Steel Corp., the world's second-biggest steel maker, said iron ore price talks with Rio Tinto Group are deadlocked because the supplier is seeking excessive increases. The talks with Rio, the world's second-biggest iron ore exporter are for ore prices for the year started April 1.
Nippon Steel, JFE Holdings Inc., and Posco, Asia's three largest steelmakers, had previously agreed to pay at least 65 percent more this year for iron ore supplied by Brazil's Cia. Vale do Rio Doce, the world's biggest exporter of the raw material.
London-based Rio, which operates mines in Australia, has said it wants a higher price than the Vale agreement because its proximity to Japan cuts shipping costs. Steelmakers are also in talks with BHP Billiton Ltd., which has made a bid for Rio Tinto, over iron ore contract prices.
Source: Bloomberg
Minerals and metals at www.minerals-and-metals.com
Nippon Steel, JFE Holdings Inc., and Posco, Asia's three largest steelmakers, had previously agreed to pay at least 65 percent more this year for iron ore supplied by Brazil's Cia. Vale do Rio Doce, the world's biggest exporter of the raw material.
London-based Rio, which operates mines in Australia, has said it wants a higher price than the Vale agreement because its proximity to Japan cuts shipping costs. Steelmakers are also in talks with BHP Billiton Ltd., which has made a bid for Rio Tinto, over iron ore contract prices.
Source: Bloomberg
Minerals and metals at www.minerals-and-metals.com
India Looks To Buy Coking Coal Mines Abroad
The Indian government’s coal ministry has formed a special purpose vehicle (SPV) to acquire coking coal mines abroad.The SPV will comprise Coal India Limited, NMDC, Steel Authority of India (SAIL), NTPC and Rashtriya Ispat Nigam Limited.
Santosh Bagrodia, the minister of state for power, said officials from Coal India and the coal ministry had visited Mozambique and Swaziland to “explore opportunities”. “If we find the right opportunity, we will fund it from our own reserves,” he said.
Officials said talks had also been initiated with the Indonesian government for leasing mines there. A final decision from Jakarta was awaited.
Indian companies have been sourcing coking coal mainly through imports from Indonesia. However, coking coal prices have gone up several times in the last year.
India imported 22 million tonnes of coking coal out of the total 42 million tonnes coal imported last year. Bagrodia said his ministry would augment supply by tripling the e-auction sale to 15 million tonnes from 5 million tonnes, beginning this month.
“We don’t intend to revise coal prices this year. In fact, we hope that augmentation of supply will bring down prices. Now, where is the question of shortage?” he asked.
Cement companies that purchase coal through e-auctions will now find it easier to maintain prices, he hoped.
The coal ministry has revised the earlier target of producing 405 million tonnes to 425 million tonnes under the Eleventh Plan.
Bagrodia rebutted allegations by the power ministry that the coal ministry was not supplying sufficient coal to the power plants.
“We are not short of coal. If power plants are facing a crunch, it is because they are not maintaining the 21-day mandatory stock level, he said.
Source: The Telegraph, Calcutta
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Santosh Bagrodia, the minister of state for power, said officials from Coal India and the coal ministry had visited Mozambique and Swaziland to “explore opportunities”. “If we find the right opportunity, we will fund it from our own reserves,” he said.
Officials said talks had also been initiated with the Indonesian government for leasing mines there. A final decision from Jakarta was awaited.
Indian companies have been sourcing coking coal mainly through imports from Indonesia. However, coking coal prices have gone up several times in the last year.
India imported 22 million tonnes of coking coal out of the total 42 million tonnes coal imported last year. Bagrodia said his ministry would augment supply by tripling the e-auction sale to 15 million tonnes from 5 million tonnes, beginning this month.
“We don’t intend to revise coal prices this year. In fact, we hope that augmentation of supply will bring down prices. Now, where is the question of shortage?” he asked.
Cement companies that purchase coal through e-auctions will now find it easier to maintain prices, he hoped.
The coal ministry has revised the earlier target of producing 405 million tonnes to 425 million tonnes under the Eleventh Plan.
Bagrodia rebutted allegations by the power ministry that the coal ministry was not supplying sufficient coal to the power plants.
“We are not short of coal. If power plants are facing a crunch, it is because they are not maintaining the 21-day mandatory stock level, he said.
Source: The Telegraph, Calcutta
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Fushan To Buy Coal Mining Assets
Hong Kong-based Fushan International Energy Group Ltd will pay HK$10.53 billion ($1.4 billion) for coking coal mining assets in China, as rapid growth in the steel and coking coal industry fuel demand.
Fushan will buy the coking coal mining assets in China's Shanxi province from Fortune Dragon Group Ltd, which is 7.50 percent-owned by Fushan's controlling shareholder and chairman, Wong Lik Ping, and 56.92 percent-owned by businessman Xing Libin. On completion of the deal, Wong's holding in Fushan would be diluted to 36.07 percent from 50.83 percent, while Xing would hold 19.38 percent of the Hong Kong-listed company.
The coking coal products producer said on Thursday some HK$4.86 billion would be paid in cash and the remainder would be settled through the issue of 1.26 billion new shares, or 34.06 percent of its enlarged share capital, at HK$4.50 each.
That would represent a 0.7 percent discount to the stock's last closing price.
Prices of coking coal in Shanxi province, China's top producing area, have jumped in recent days as small mines are being shut in a safety campaign ahead of the Olympic Games. More than half of the country's coking coal is produced by small and medium-sized mines, which have been blamed for China's deadly mine safety record.
Source: Reuters
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Fushan will buy the coking coal mining assets in China's Shanxi province from Fortune Dragon Group Ltd, which is 7.50 percent-owned by Fushan's controlling shareholder and chairman, Wong Lik Ping, and 56.92 percent-owned by businessman Xing Libin. On completion of the deal, Wong's holding in Fushan would be diluted to 36.07 percent from 50.83 percent, while Xing would hold 19.38 percent of the Hong Kong-listed company.
The coking coal products producer said on Thursday some HK$4.86 billion would be paid in cash and the remainder would be settled through the issue of 1.26 billion new shares, or 34.06 percent of its enlarged share capital, at HK$4.50 each.
That would represent a 0.7 percent discount to the stock's last closing price.
Prices of coking coal in Shanxi province, China's top producing area, have jumped in recent days as small mines are being shut in a safety campaign ahead of the Olympic Games. More than half of the country's coking coal is produced by small and medium-sized mines, which have been blamed for China's deadly mine safety record.
Source: Reuters
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Quarry Owner To Mount High Court Challenge
High Peak Spar, the operators of Smalldale Head Quarry at Bradwell in Derbyshire have won the right to mount a High Court challenge against a decision ordering them to stop selling limestone. The company say the ban will force the mine out of business. As a result there will be a judicial review of an enforcement notice issued by the Peak District National Park Authority and backed by the Government, which ordered them to stop the working and export of limestone.
The quarry has had planning permission since 1951 for the mining of lead and the mineral fluorspar, but the owners say the enterprise is only profitable by the additional sale of limestone that is extracted to reach the fluorspar. If stopped from selling limestone the business would not survive, the owners say.
In December 2005, the Peak Park Authority issued an enforcement notice alleging that the export of limestone was a breach of planning control and should cease. Following a public inquiry that decision was backed by the UK Government on the recommendation of a planning inspector. But High Peak Spar says that the inspector was wrong on a number of points and claims that, unusually for a case of this kind, there was no opposition to its operations from local residents at the public inquiry.
It hopes to win a ruling, at a full hearing later this year, forcing the Secretary of State for Communities and Local Government Hazel Blears to have the matter reconsidered.
Source: Sheffield Telegraph
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The quarry has had planning permission since 1951 for the mining of lead and the mineral fluorspar, but the owners say the enterprise is only profitable by the additional sale of limestone that is extracted to reach the fluorspar. If stopped from selling limestone the business would not survive, the owners say.
In December 2005, the Peak Park Authority issued an enforcement notice alleging that the export of limestone was a breach of planning control and should cease. Following a public inquiry that decision was backed by the UK Government on the recommendation of a planning inspector. But High Peak Spar says that the inspector was wrong on a number of points and claims that, unusually for a case of this kind, there was no opposition to its operations from local residents at the public inquiry.
It hopes to win a ruling, at a full hearing later this year, forcing the Secretary of State for Communities and Local Government Hazel Blears to have the matter reconsidered.
Source: Sheffield Telegraph
Minerals and Metals at www.minerals-and-metals.com
Platinum Group To Miss Earnings Target After Failure To Secure Nickel Mine
Oriental Peninsula Resources Group in the Philippines may not meet production and earnings targets it committed when it went public last year because of its failure to secure a nickel mine site in Palawan.
Ramon Atayde, chairman of Oriental’s parent company Platinum Group, said in a statement, “I think the bottom line is we continue to be in possession of the mines and this is what the Oriental story is all about. Unfortunately, they went public and they did not disclose one important thing—who is in possession of the mine.”
Municipal Mayor Clarito Demaala Jr. and Barangay captain Betty Ignacio of Narra, Palawan has backed the claim of Platinum Group on the Toronto nickel mine site since its operation in 2004.
They noted that Platinum Group had a campsite, mine site and stockyards in the area covering 768 hectares while “Citinickel Mines and Development Corp. nor Olympic Mines Development Corp. has no physical presence in the area and never occupied the Toronto Nickel Mines.”
Oriental Peninsula said in its initial public offering in December, that it expected to start nickel ore production in the first half of 2008, ship 600,000 wet metric tons of ore from its Española mine in Palawan and eventually raise the output to 100,000 MT a month. Full- year production in 2009 was expected to hit 1.5 million tons.
Atayde said Platinum Group remained in control of the nickel mine site in Narra and Sofronio Española in Palawan although operations have been suspended by pending court cases.
Source: Manila Standard
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Ramon Atayde, chairman of Oriental’s parent company Platinum Group, said in a statement, “I think the bottom line is we continue to be in possession of the mines and this is what the Oriental story is all about. Unfortunately, they went public and they did not disclose one important thing—who is in possession of the mine.”
Municipal Mayor Clarito Demaala Jr. and Barangay captain Betty Ignacio of Narra, Palawan has backed the claim of Platinum Group on the Toronto nickel mine site since its operation in 2004.
They noted that Platinum Group had a campsite, mine site and stockyards in the area covering 768 hectares while “Citinickel Mines and Development Corp. nor Olympic Mines Development Corp. has no physical presence in the area and never occupied the Toronto Nickel Mines.”
Oriental Peninsula said in its initial public offering in December, that it expected to start nickel ore production in the first half of 2008, ship 600,000 wet metric tons of ore from its Española mine in Palawan and eventually raise the output to 100,000 MT a month. Full- year production in 2009 was expected to hit 1.5 million tons.
Atayde said Platinum Group remained in control of the nickel mine site in Narra and Sofronio Española in Palawan although operations have been suspended by pending court cases.
Source: Manila Standard
Minerals and Metals at www.minerals-and-metals.com
Friday, May 23, 2008
Arcelormittal Takes 14.9% Stake In Macarthur Coal
Arcelormittal, the world's biggest steel maker, has taken a 14.9 per cent stake in Macarthur Coal and is seeking talks with the company about a potential deal in a move on the miner that looks designed to lock in access to Macarthur's coal for its steel mills.
Macarthur said today that ArcelorMittal was behind two large trades at $20 a share that have delivered the steel maker a significant stake in the miner.
"ArcelorMittal has approached Macarthur Coal in respect of a potential transaction," Macarthur said in a statement. The move is the latest in a steady stream of foreign takeovers for Australian miners, sparked by surging commodity prices.
Speculation about a takeover for Macarthur has been running hot since the miner revealed in April that it had been approached by a third party about a possible transaction. Macarthur said today that this party was not ArcelorMittal and that, while talks have been continuing, there is no certainty that a proposal will be made to the board.
Under Australian takeover law, a bidder for a company has to at least match the price it has paid for a stake in its target in any subsequent bid, meaning any offer from ArcelorMittal will have to be pitched at $20 or above.
One investment banker said a $20-a-share bid for Macarthur looked fully priced given the miner's infrastructure constraints and it was hard to see another bidder matching it.
Sources suggest that the price paid by ArcelorMittal for its stake looked to have knocked the third party – believed to be Xstrata - out of the running and an agreed bid from the steel making giant was now likely soon.
However, Morgan Stanley analyst Craig Campbell said the tight coking coal market and Macarthur's changing profile meant a buyer could see value at more than $20 a share.
"Anyone that has got an interest in coking coal would have to have a look," he said. "When these opportunities arise you get one shot at it and that is it, the assets don't come around that often."
Macarthur produces pulverised coal used in steel making and ArcelorMittal is already a large buyer of output from its Queensland mines, and looks to be acting to lock in supply in a tight market.
One of the biggest issues for any bidder for Macarthur will be convincing the major shareholders on its register to sell into the bid.
ArcelorMittal looks to have already taken some steps on this front, buying its initial stake from two of Macarthur's major shareholders, according to people familiar with the situation.
However, a bigger challenge for bidders may be China's Citic Group, which has a 17.6 per cent stake.
Source: The Australian
Macarthur said today that ArcelorMittal was behind two large trades at $20 a share that have delivered the steel maker a significant stake in the miner.
"ArcelorMittal has approached Macarthur Coal in respect of a potential transaction," Macarthur said in a statement. The move is the latest in a steady stream of foreign takeovers for Australian miners, sparked by surging commodity prices.
Speculation about a takeover for Macarthur has been running hot since the miner revealed in April that it had been approached by a third party about a possible transaction. Macarthur said today that this party was not ArcelorMittal and that, while talks have been continuing, there is no certainty that a proposal will be made to the board.
Under Australian takeover law, a bidder for a company has to at least match the price it has paid for a stake in its target in any subsequent bid, meaning any offer from ArcelorMittal will have to be pitched at $20 or above.
One investment banker said a $20-a-share bid for Macarthur looked fully priced given the miner's infrastructure constraints and it was hard to see another bidder matching it.
Sources suggest that the price paid by ArcelorMittal for its stake looked to have knocked the third party – believed to be Xstrata - out of the running and an agreed bid from the steel making giant was now likely soon.
However, Morgan Stanley analyst Craig Campbell said the tight coking coal market and Macarthur's changing profile meant a buyer could see value at more than $20 a share.
"Anyone that has got an interest in coking coal would have to have a look," he said. "When these opportunities arise you get one shot at it and that is it, the assets don't come around that often."
Macarthur produces pulverised coal used in steel making and ArcelorMittal is already a large buyer of output from its Queensland mines, and looks to be acting to lock in supply in a tight market.
One of the biggest issues for any bidder for Macarthur will be convincing the major shareholders on its register to sell into the bid.
ArcelorMittal looks to have already taken some steps on this front, buying its initial stake from two of Macarthur's major shareholders, according to people familiar with the situation.
However, a bigger challenge for bidders may be China's Citic Group, which has a 17.6 per cent stake.
Source: The Australian
China Urges Iron Ore Buyers Not To Stockpile Raw Material
Chinese steel makers, the world's biggest buyers of iron ore, should reduce stockpiles of the raw material because they give a "false impression" of rising demand, the China Iron and Steel Association (CISA) said. Mills should only store iron ore at ports to meet 45 days of usage, the association, funded by the nation's biggest steel makers, said on its website. Companies that import and keep iron ore to sell later for higher prices would be deprived of import licences, it said.
Rio Tinto and BHP Billiton, which account for half of Asia's iron ore sales, are pointing to rising Chinese imports of the material to ask for more for their products.
Chinese companies held a record 79.2 million tonnes of iron ore at ports, CISA said yesterday. "The high stockpiles delayed loading of new shipments and hampered cash flow. It also gives a false impression that China's demand is rising sharply."
Source: The Australian
Minerals And Metals at www.minerals-and-metals.com
The country imported 383.1 million tonnes of ore last year.
China's iron ore imports rose 15 per cent in the first four months of 2008 from a year earlier, outpacing the 8.3 per cent increase in blast-furnace output, the association said.
Chinese steel makers have agreed to pay Brazil's Vale do Rio Doce, the world's largest exporter of iron ore, as much as 71 per cent more for the raw material this year. Rio and BHP want a higher price than that.
Rio Tinto and BHP Billiton, which account for half of Asia's iron ore sales, are pointing to rising Chinese imports of the material to ask for more for their products.
Chinese companies held a record 79.2 million tonnes of iron ore at ports, CISA said yesterday. "The high stockpiles delayed loading of new shipments and hampered cash flow. It also gives a false impression that China's demand is rising sharply."
Source: The Australian
Minerals And Metals at www.minerals-and-metals.com
The country imported 383.1 million tonnes of ore last year.
China's iron ore imports rose 15 per cent in the first four months of 2008 from a year earlier, outpacing the 8.3 per cent increase in blast-furnace output, the association said.
Chinese steel makers have agreed to pay Brazil's Vale do Rio Doce, the world's largest exporter of iron ore, as much as 71 per cent more for the raw material this year. Rio and BHP want a higher price than that.
New Australian Multi-Minerals Mine To Bring In $A600million A Year
A NEW multi-minerals mine near Aileron in Australia’s Northern Territory will be up and running in three years and is expected to sell more than $A600 million of product a year.
Arafura Resources said the Nolans Bore mine, 135km northwest of Alice Springs, could cash in on the global demand for phosphoric acid which is used for fertiliser production.
Arafura sustainability manager Brian Fowler said rare earth and phosphoric acid would make up 57 and 30 per cent of the mine's potential profit, while calcium chloride and uranium would provide 9 per cent and 4 per cent respectively.
He said: “There's a global demand for phosphoric acid, and as a response the price has increased.''
Chief financial officer Gavin Lockyer said that while predicted annual costs could be up to $262m the mine's value was excellent.
He said: “With a life of the mine in excess of 20 years, $602 million is not a bad number.
“Annual operating costs are in the order of between $209m and $262m based on our pre-feasibility study, and we are looking at ways to reduce these.''
Managing director Alistair Stephens said in Tokyo that testing was still being carried out, but he predicted around 500,000 tonnes of concentrate ore would be mined annually.
Source: The Centralian Advocate, Alice Springs
Arafura Resources said the Nolans Bore mine, 135km northwest of Alice Springs, could cash in on the global demand for phosphoric acid which is used for fertiliser production.
Arafura sustainability manager Brian Fowler said rare earth and phosphoric acid would make up 57 and 30 per cent of the mine's potential profit, while calcium chloride and uranium would provide 9 per cent and 4 per cent respectively.
He said: “There's a global demand for phosphoric acid, and as a response the price has increased.''
Chief financial officer Gavin Lockyer said that while predicted annual costs could be up to $262m the mine's value was excellent.
He said: “With a life of the mine in excess of 20 years, $602 million is not a bad number.
“Annual operating costs are in the order of between $209m and $262m based on our pre-feasibility study, and we are looking at ways to reduce these.''
Managing director Alistair Stephens said in Tokyo that testing was still being carried out, but he predicted around 500,000 tonnes of concentrate ore would be mined annually.
Source: The Centralian Advocate, Alice Springs
Silicon Metal Plant To Re-Open in Niagara Falls
An idle industrial plant in Niagara Falls, New York State, will reopen early next year, creating 500 new jobs tied to production of silicon for the solar power industry.
The Globe Metallurgical plant, dormant since 2003, will come back to life under the ownership of Globe Specialty Metals, one of the world's largest producers of metallurgical and chemical-grade silicon metal and silicon-based specialty alloys.
Globe will invest $60 million in the facility, including a 100,000-square-foot expansion. The facility is expected to be in full production by 2011, turning out 4,000 tons of solar-grade silicon per year.
The reopening is aided in large part by a 40-megawatt allocation of low-cost power from the New York Power Authority approved today. Globe also will get a boost from about $25 million in state Empire Development Zone benefits tied to job creation.
Source: Buffalo News
Minerals and Metals at www.minerals-and-metals.com
The Globe Metallurgical plant, dormant since 2003, will come back to life under the ownership of Globe Specialty Metals, one of the world's largest producers of metallurgical and chemical-grade silicon metal and silicon-based specialty alloys.
Globe will invest $60 million in the facility, including a 100,000-square-foot expansion. The facility is expected to be in full production by 2011, turning out 4,000 tons of solar-grade silicon per year.
The reopening is aided in large part by a 40-megawatt allocation of low-cost power from the New York Power Authority approved today. Globe also will get a boost from about $25 million in state Empire Development Zone benefits tied to job creation.
Source: Buffalo News
Minerals and Metals at www.minerals-and-metals.com
Sumitomo To Develop Nickel Mine In Solomon Islands
Sumitomo Metal Mining plans to spend about 200 billion yen ($1.93 billion) to develop a nickel mine in the Solomon Islands, followed by the construction of a refinery, a power plant and port facilities by 2012 according to unconfirmed reports from Nikkei English News.
The refinery will process nickel ore into metal with 55 percent purity by 2013 or later, with the output shipped to another Sumitomo plant for more purification, the news service said. Executives anticipate annual output of around 30,000 tons, with sales mostly to Japanese customers as bullion.
Tokyo-based Sumitomo Metal Mining has been exploring the South Pacific nation for nickel-ore deposits since 2006, Nikkei said. Japan accounts for 13 percent of worldwide nickel demand, taking in a little less than 900,000 tons a year.
Source: Bloomberg
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The refinery will process nickel ore into metal with 55 percent purity by 2013 or later, with the output shipped to another Sumitomo plant for more purification, the news service said. Executives anticipate annual output of around 30,000 tons, with sales mostly to Japanese customers as bullion.
Tokyo-based Sumitomo Metal Mining has been exploring the South Pacific nation for nickel-ore deposits since 2006, Nikkei said. Japan accounts for 13 percent of worldwide nickel demand, taking in a little less than 900,000 tons a year.
Source: Bloomberg
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