South Africa's Metorex has sold a 15 percent stake in Vergenoeg Mining to empowerment consortium Medu Capital for almost R109 million, the mining conglomerate announced yesterday.
Metorex chief executive Terence Goodlace said: "This is an important step in the transformation of Metorex and this transaction positions Vergenoeg well for its ongoing fluorspar operations. It also demonstrates our commitment to restructuring the group and enhances our liquidity position."
Source: Business Report
Friday, July 31, 2009
China Buying More Iron Ore From Brazil
The chartering of bulk carriers for delivery from Brazil to China of iron-ore bought on the spot market hit a record level this month.
The number of ships involved is 31.
This is because the Chinese are substituting Brazilian iron-ore for Australian, as a result of Australia’s suspension of spot sales to China. The decline in freight costs also makes sourcing spot iron-ore from Brazil more attractive.
China takes more than 50% of globally traded iron-ore and its rising demand has driven the spot price to its highest levels in eight months. Indian iron-ore-miners are also benefiting from this strong Chinese demand. Ores from India with an iron content of 63% to 63,5%, for delivery in August, were quoted at prices of $91/t to $93/t last week, up from $87/t to $89/t a fortnight ago.
Spot prices for benchmark 62% iron content ores from all international sources delivered to China, according to the Steel Index, reached $84,4/t early last week – an increase of nearly $3/t in a week – while the Metal Bulletin reported a price for this quality ore of $85,8/t for the same date. By the end of last week, the spot price was close to $100/t. Indeed, spot prices have risen by more than 60% in three months.
Market watchers believe that the spot prices will remain above contract prices for this year, but spot price increases could be constrained by the possibility of high- cost Chinese mines being reopened and by short-term excessive Chinese buying of the metal, leading to pauses in buying later in the year.
Brazil has been China’s number two supplier of the metal, after Australia. But during the first three weeks of this month, there were only 12 bookings for ships to carry Australian iron-ore to China, compared with a monthly average of 40 during the second quarter, and in sharp contrast to the record figure of 55 in March.
All this is the direct result of the dispute between Australia and China over the latter’s detention of four China-based employees of Anglo-Australian mining group Rio Tinto on July 5. One of the detained men, the manager of Rio’s iron-ore sales operation in China, Stern Hu, is an Australian citizen, while the other three are Chinese citizens. The Chinese authorities accuse the four men of stealing State secrets, obtaining them by bribery and other criminal methods.
Rio Tinto has stated that the allegations are “wholly without foundation”. However, on July 22, Chinese vice Foreign Minister He Yafei asserted: “We have sufficient evidence showing that the individuals involved obtained China’s State secrets using illegal means.”
Chinese law allows suspects to be held and interrogated for some time without being charged and without access to legal representation (although China has allowed Australian consular officials to visit Hu). China is not a democracy and does not have an independent judiciary, and Australian Foreign Minister Stephen Smith pointed out: “The Chinese have a much broader or wider view of what Australia might describe as State security, State secret, or national security matters.” Australia is pushing for the case to be dealt with expeditiously.
China is Australia’s second-biggest trading partner, and trade between the two was worth nearly $60-billion last year (up 36,1% from 2007), of which Australian iron-ore exports accounted for some $14-billion. China is Australia’s number one source of imports and its number two export market – Australian exports to China reached $37.42- billion last year, an increase of 44,8% over 2007. For China, Australia is its number seven source of imports and number ten export market, ranking the Antipodean country as the Asian giant’s eighth most important trading partner.
Little wonder, then, that Australian Trade Minister Simon Crean has commented, regarding the Rio Tinto affair, that with regard to the “impact on the economic relationship between our two countries, I don’t believe – particularly if the case is handled properly – it will have any impact on those relations”.
Source: Creamer's Mining Weekly
The number of ships involved is 31.
This is because the Chinese are substituting Brazilian iron-ore for Australian, as a result of Australia’s suspension of spot sales to China. The decline in freight costs also makes sourcing spot iron-ore from Brazil more attractive.
China takes more than 50% of globally traded iron-ore and its rising demand has driven the spot price to its highest levels in eight months. Indian iron-ore-miners are also benefiting from this strong Chinese demand. Ores from India with an iron content of 63% to 63,5%, for delivery in August, were quoted at prices of $91/t to $93/t last week, up from $87/t to $89/t a fortnight ago.
Spot prices for benchmark 62% iron content ores from all international sources delivered to China, according to the Steel Index, reached $84,4/t early last week – an increase of nearly $3/t in a week – while the Metal Bulletin reported a price for this quality ore of $85,8/t for the same date. By the end of last week, the spot price was close to $100/t. Indeed, spot prices have risen by more than 60% in three months.
Market watchers believe that the spot prices will remain above contract prices for this year, but spot price increases could be constrained by the possibility of high- cost Chinese mines being reopened and by short-term excessive Chinese buying of the metal, leading to pauses in buying later in the year.
Brazil has been China’s number two supplier of the metal, after Australia. But during the first three weeks of this month, there were only 12 bookings for ships to carry Australian iron-ore to China, compared with a monthly average of 40 during the second quarter, and in sharp contrast to the record figure of 55 in March.
All this is the direct result of the dispute between Australia and China over the latter’s detention of four China-based employees of Anglo-Australian mining group Rio Tinto on July 5. One of the detained men, the manager of Rio’s iron-ore sales operation in China, Stern Hu, is an Australian citizen, while the other three are Chinese citizens. The Chinese authorities accuse the four men of stealing State secrets, obtaining them by bribery and other criminal methods.
Rio Tinto has stated that the allegations are “wholly without foundation”. However, on July 22, Chinese vice Foreign Minister He Yafei asserted: “We have sufficient evidence showing that the individuals involved obtained China’s State secrets using illegal means.”
Chinese law allows suspects to be held and interrogated for some time without being charged and without access to legal representation (although China has allowed Australian consular officials to visit Hu). China is not a democracy and does not have an independent judiciary, and Australian Foreign Minister Stephen Smith pointed out: “The Chinese have a much broader or wider view of what Australia might describe as State security, State secret, or national security matters.” Australia is pushing for the case to be dealt with expeditiously.
China is Australia’s second-biggest trading partner, and trade between the two was worth nearly $60-billion last year (up 36,1% from 2007), of which Australian iron-ore exports accounted for some $14-billion. China is Australia’s number one source of imports and its number two export market – Australian exports to China reached $37.42- billion last year, an increase of 44,8% over 2007. For China, Australia is its number seven source of imports and number ten export market, ranking the Antipodean country as the Asian giant’s eighth most important trading partner.
Little wonder, then, that Australian Trade Minister Simon Crean has commented, regarding the Rio Tinto affair, that with regard to the “impact on the economic relationship between our two countries, I don’t believe – particularly if the case is handled properly – it will have any impact on those relations”.
Source: Creamer's Mining Weekly
Shanxi May Lift Coal Price
Interfax-china has quoted an employee from a coke producer in Shanxi Province as sayingng that the Shanxi Coking Industry Association may lift its coke reference price in August by CNY 50 per tonne from the previous month due to rising coking coal prices.
The anonymous employee - from the sales department of Shanxi Coking Co Ltd, China's biggest coke producer - said "Domestic coking coal prices have been rising since July 20th which has increased our production costs. As such, we think the enterprises that report to the SCIA are very likely to agree to raising the August reference price."
The source added that the company recently resumed operations at more of its coke production facilities, as demand from the downstream steelmaking industry increased. Currently, only around one third of the company's total 3.6 million tonne annual coke production capacity is dormant.
Mr Zeng Lili an analyst from ChinaCCM.com said "Some Chinese coke producers are refraining from selling at the moment which will tighten market supply and support domestic coke prices."
In June, China's crude steel and coke output increased by 6.38% and 14.65% MoM respectively.
SourcE: Steel Guru
The anonymous employee - from the sales department of Shanxi Coking Co Ltd, China's biggest coke producer - said "Domestic coking coal prices have been rising since July 20th which has increased our production costs. As such, we think the enterprises that report to the SCIA are very likely to agree to raising the August reference price."
The source added that the company recently resumed operations at more of its coke production facilities, as demand from the downstream steelmaking industry increased. Currently, only around one third of the company's total 3.6 million tonne annual coke production capacity is dormant.
Mr Zeng Lili an analyst from ChinaCCM.com said "Some Chinese coke producers are refraining from selling at the moment which will tighten market supply and support domestic coke prices."
In June, China's crude steel and coke output increased by 6.38% and 14.65% MoM respectively.
SourcE: Steel Guru
Kazakhstan Reports Lower Steel, Ferroalloy Output
According to the data released by the Republic of Kazakhstan’s Agency of Statistics, in the H1 of 2009 the country registered a 20.5% year-on-year decrease in its crude steel production but only a 1% decrease in its production of flat rolled steel all compared to the data for January to June 2008.
The respective figures in tonnes were 1.878 million and 1.608 million. During the first six months of 2009, Kazakhstan’s output of ferroalloys went down by 27.5% YoY to 627,869 tonnes.
Source: Steel Guru
The respective figures in tonnes were 1.878 million and 1.608 million. During the first six months of 2009, Kazakhstan’s output of ferroalloys went down by 27.5% YoY to 627,869 tonnes.
Source: Steel Guru
Zinc Price Rise Could Revive West Australian Mine
A Western Australian junior exploration company is pinning its hopes on a recovery on the price of zinc to restart the Lennard Shelf mine.
Lennard Shelf in Western Australia's far north Kimberley was closed earlier this year with the loss of a couple of hundred jobs.
Meridian Minerals, which bought the mothballed operation, hopes to restart the high grade zinc and lead mine within a year.
Managing director Jeremy Read says he's confident the price of zinc is ready to rebound.
"There have been significant cuts in zinc production globally, and if you look at what's happened in the past, where people have made assesments about production coming back on stream, there always seems to be a very significant lag," he says.
"So that is a factor that should underpin a growth in the zinc price."
Source: ABC
Lennard Shelf in Western Australia's far north Kimberley was closed earlier this year with the loss of a couple of hundred jobs.
Meridian Minerals, which bought the mothballed operation, hopes to restart the high grade zinc and lead mine within a year.
Managing director Jeremy Read says he's confident the price of zinc is ready to rebound.
"There have been significant cuts in zinc production globally, and if you look at what's happened in the past, where people have made assesments about production coming back on stream, there always seems to be a very significant lag," he says.
"So that is a factor that should underpin a growth in the zinc price."
Source: ABC
Alaksan Natives Try To Stop Mine Development
It has always been a match made in peril: One of the biggest copper and gold mines in the world perched in the watershed above Bristol Bay, Alaska -- the last, best refuge for millions of Pacific wild salmon.
The proposed Pebble Mine would dwarf all the others operating in the Alaskan wilderness and generate up to 9 billion tons of ore, most of which would have to be sifted and disposed of near the ponds and streams that feed into Bristol Bay.
In an attempt to head off the project before it gets too big to stop, a coalition of Alaska Native village corporations and others filed suit this week in Anchorage, charging that the state was violating its Constitution by allowing drilling and other exploration to proceed without full environmental review.
The mine would cover 15 square miles, with a 1,600-foot-deep open pit stretching across two square miles. Early development proposals have called for holding the hazardous tailing behind massive dams -- one 740 feet high, the other 450 feet high. The exact plans won't be known until 2010 or 2011, when Pebble Partnership submits its development permit applications to the state.
Conservationists worry that the millions of dollars spent on exploration while officials conduct public hearings and await the environmental impact statement will give the project political momentum that even Alaska's powerful fishing industry would find hard to fight.
The lawsuit invoked an article of the Alaska Constitution that requires hearings and analyses to determine whether state-owned natural resources are being managed for the common public good. Specifically, the suit argued that Alaska should conduct studies to determine whether exploration at the mine was affecting other users of public land, water, fish and wildlife.
"This kind of activity is being treated . . . as if there's some guy out there with a mule, a pick axe and a shovel turning over a little bit of rock and looking for a nugget. But this is in essence industrial-scale activity," Steve Cotton, executive director of the public interest law firm Trustees for Alaska, said at a news conference in Anchorage.
Representatives of Nunamta Aulukestai, a coalition of eight native village corporations that filed the lawsuit, said they already were seeing effects from the exploration. Fewer caribou linger in the area, they said in court papers, and waste from exploratory drilling has trickled into streams and ponds.
"What we would like to see right now is for everyone to take a step back and look at all the potential negative impacts associated with a development this large in an area that's incredibly sensitive and extremely important to a lot of people in this state," said Tim Bristol, director of Trout Unlimited in Alaska, which has opposed the mine but is not a plaintiff in the lawsuit.
"You have a giant open pit proposed; you're going to have billions of tons of waste rock, 100 miles of access road; a deep-water port is going to have to be constructed; there's going to have to be a source of power, incredible amounts of water to charge the system and store the waste; and you have to think about how to treat that waste in perpetuity . . . in a region that right now is sort of this wild salmon wilderness," Bristol said.
Trout Unlimited and other conservationists back legislation that would require a separate set of reviews for the Pebble Mine, given its proximity to Bristol Bay, which generates a third of the state's commercial fishing revenue. The state Legislature won't have a chance to act on that until it re-convenes in January.
State officials have said that plenty of studies would be done once Pebble applies for its development permits. At the moment, they added, exploration is going on at hundreds of mining claims, large and small, across the state, and Alaska law does not require formal studies or public hearings.
"There are 400 to 500 of these in place, statewide, at any one time," said Tom Crafford, mining coordinator at the Alaska Department of Natural Resources. "Absolutely, once a project applies for development permits, then that triggers a whole host of permit requirements, public notice requirements, comment periods, both state and federal."
Pebble Partnership Chief Executive John Shively said there already has been full inspection by state and federal agencies, including the state Department of Fish and Game and the federal Environmental Protection Agency. "So it's not like there's no oversight," he told KTUU-TV in Anchorage, "or that the public doesn't have the ability to look at what our program is and to go tell the agencies what they think about it."
Source: Los Angeles Times
The proposed Pebble Mine would dwarf all the others operating in the Alaskan wilderness and generate up to 9 billion tons of ore, most of which would have to be sifted and disposed of near the ponds and streams that feed into Bristol Bay.
In an attempt to head off the project before it gets too big to stop, a coalition of Alaska Native village corporations and others filed suit this week in Anchorage, charging that the state was violating its Constitution by allowing drilling and other exploration to proceed without full environmental review.
The mine would cover 15 square miles, with a 1,600-foot-deep open pit stretching across two square miles. Early development proposals have called for holding the hazardous tailing behind massive dams -- one 740 feet high, the other 450 feet high. The exact plans won't be known until 2010 or 2011, when Pebble Partnership submits its development permit applications to the state.
Conservationists worry that the millions of dollars spent on exploration while officials conduct public hearings and await the environmental impact statement will give the project political momentum that even Alaska's powerful fishing industry would find hard to fight.
The lawsuit invoked an article of the Alaska Constitution that requires hearings and analyses to determine whether state-owned natural resources are being managed for the common public good. Specifically, the suit argued that Alaska should conduct studies to determine whether exploration at the mine was affecting other users of public land, water, fish and wildlife.
"This kind of activity is being treated . . . as if there's some guy out there with a mule, a pick axe and a shovel turning over a little bit of rock and looking for a nugget. But this is in essence industrial-scale activity," Steve Cotton, executive director of the public interest law firm Trustees for Alaska, said at a news conference in Anchorage.
Representatives of Nunamta Aulukestai, a coalition of eight native village corporations that filed the lawsuit, said they already were seeing effects from the exploration. Fewer caribou linger in the area, they said in court papers, and waste from exploratory drilling has trickled into streams and ponds.
"What we would like to see right now is for everyone to take a step back and look at all the potential negative impacts associated with a development this large in an area that's incredibly sensitive and extremely important to a lot of people in this state," said Tim Bristol, director of Trout Unlimited in Alaska, which has opposed the mine but is not a plaintiff in the lawsuit.
"You have a giant open pit proposed; you're going to have billions of tons of waste rock, 100 miles of access road; a deep-water port is going to have to be constructed; there's going to have to be a source of power, incredible amounts of water to charge the system and store the waste; and you have to think about how to treat that waste in perpetuity . . . in a region that right now is sort of this wild salmon wilderness," Bristol said.
Trout Unlimited and other conservationists back legislation that would require a separate set of reviews for the Pebble Mine, given its proximity to Bristol Bay, which generates a third of the state's commercial fishing revenue. The state Legislature won't have a chance to act on that until it re-convenes in January.
State officials have said that plenty of studies would be done once Pebble applies for its development permits. At the moment, they added, exploration is going on at hundreds of mining claims, large and small, across the state, and Alaska law does not require formal studies or public hearings.
"There are 400 to 500 of these in place, statewide, at any one time," said Tom Crafford, mining coordinator at the Alaska Department of Natural Resources. "Absolutely, once a project applies for development permits, then that triggers a whole host of permit requirements, public notice requirements, comment periods, both state and federal."
Pebble Partnership Chief Executive John Shively said there already has been full inspection by state and federal agencies, including the state Department of Fish and Game and the federal Environmental Protection Agency. "So it's not like there's no oversight," he told KTUU-TV in Anchorage, "or that the public doesn't have the ability to look at what our program is and to go tell the agencies what they think about it."
Source: Los Angeles Times
Thursday, July 30, 2009
Kazakhmys Posts Rise In Copper Cathode Production
Kazakh miner Kazakhmys posted a 8 percent rise in first-half copper cathode output on Thursday and said although second-half output would be lower the company was on track to meet its full year target.
The London-listed firm said output of copper cathodes, or refined copper, produced from its own material increased to 170,000 tonnes during the three months to the end of June from 157,100 tonnes in the same period last year.
Copper cathode production, including purchased material, fell to 173,800 tonnes from 174,300 tonnes last year.
'Given the progress made in reducing stockpiles, output is likely to be lower in the second half, but we remain on track to meet our full-year target,' Oleg Novachuk, Chief Executive Officer, said in a statement.
Kazakhmys has said it planned to cut copper cathode production this year to about 300,000 tonnes, from 378,100 tonnes in 2008, in response to lower demand.
On April 30, the company posted a 20 percent fall in first-quarter copper cathode production from the previous quarter as part of the move to cut output.
Source: Forbes/Reuters
The London-listed firm said output of copper cathodes, or refined copper, produced from its own material increased to 170,000 tonnes during the three months to the end of June from 157,100 tonnes in the same period last year.
Copper cathode production, including purchased material, fell to 173,800 tonnes from 174,300 tonnes last year.
'Given the progress made in reducing stockpiles, output is likely to be lower in the second half, but we remain on track to meet our full-year target,' Oleg Novachuk, Chief Executive Officer, said in a statement.
Kazakhmys has said it planned to cut copper cathode production this year to about 300,000 tonnes, from 378,100 tonnes in 2008, in response to lower demand.
On April 30, the company posted a 20 percent fall in first-quarter copper cathode production from the previous quarter as part of the move to cut output.
Source: Forbes/Reuters
Felix Resources Sees Increased Demand From China and India
Australian coal miner Felix Resources beat its own guidance and market expectations for full-year coal production, the miner said today.
The miner said it was now shipping significant volumes coal to China and India.
Coal sales for the fourth quarter ended June 30 rose 17 per cent to 1.38 million metric tons from the previous year, taking full-year output to 4.77m tons, up 3 per cent on an annual comparison.
The full-year output was ahead of Felix's guidance for between 4.5m and 4.6m tons and Macquarie analyst Sophie Spartalis said it had exceeded market expectations.
"It looks very strong and underpins our view that it is our preferred stock in the space," she said.
Felix shipped its first load of coal to Chinese customers in the third quarter and managing director Brian Flannery said that China and India had emerged as significant new sources of demand in the fourth quarter.
Mr Flannery said more than 500,000 metric tons of coking coal had been shipped to the two Asian giants, mostly to China, as demand had softened from traditional customers such as Japan, South Korea and Taiwan.
"We saw additional demand from China and India, who took up the slack that we copped in the third quarter from our traditional customers not being able to lift all the coal," he told Dow Jones Newswires.
Lower freight rates have made Australian coal more attractive to Chinese buyers, but while some have questioned whether the demand will persist when freight rates recover, Mr Flannery said he expects that Chinese buyers are here to stay.
"I think they are going to be a long-term buyer of Australian coking coal products," he said.
Felix's fourth-quarter saleable coal production rose 20 per cent to 1.3m metric tons from a year earlier, and the miner said it had coal stockpiles at the end of the period of 899,000 tons, compared to 672,000 tons at the same time last year.
"Starting the new financial year with good stockpiles will enable the company to supply new markets, while meeting demand from our existing customers as their production profile increases with the economic upturn, which seems to be occurring in Asia," the miner said in a statement.
At June 30, Felix had $51.4m in debt and cash reserves of $340m. Felix said it had so far been funding most of construction activity on its new Moolarben thermal coal mine with cashflow.
Source: The Australian
The miner said it was now shipping significant volumes coal to China and India.
Coal sales for the fourth quarter ended June 30 rose 17 per cent to 1.38 million metric tons from the previous year, taking full-year output to 4.77m tons, up 3 per cent on an annual comparison.
The full-year output was ahead of Felix's guidance for between 4.5m and 4.6m tons and Macquarie analyst Sophie Spartalis said it had exceeded market expectations.
"It looks very strong and underpins our view that it is our preferred stock in the space," she said.
Felix shipped its first load of coal to Chinese customers in the third quarter and managing director Brian Flannery said that China and India had emerged as significant new sources of demand in the fourth quarter.
Mr Flannery said more than 500,000 metric tons of coking coal had been shipped to the two Asian giants, mostly to China, as demand had softened from traditional customers such as Japan, South Korea and Taiwan.
"We saw additional demand from China and India, who took up the slack that we copped in the third quarter from our traditional customers not being able to lift all the coal," he told Dow Jones Newswires.
Lower freight rates have made Australian coal more attractive to Chinese buyers, but while some have questioned whether the demand will persist when freight rates recover, Mr Flannery said he expects that Chinese buyers are here to stay.
"I think they are going to be a long-term buyer of Australian coking coal products," he said.
Felix's fourth-quarter saleable coal production rose 20 per cent to 1.3m metric tons from a year earlier, and the miner said it had coal stockpiles at the end of the period of 899,000 tons, compared to 672,000 tons at the same time last year.
"Starting the new financial year with good stockpiles will enable the company to supply new markets, while meeting demand from our existing customers as their production profile increases with the economic upturn, which seems to be occurring in Asia," the miner said in a statement.
At June 30, Felix had $51.4m in debt and cash reserves of $340m. Felix said it had so far been funding most of construction activity on its new Moolarben thermal coal mine with cashflow.
Source: The Australian
Eramet Unveils Activity Forecast For 2009
Mr Patrick Buffet president director general of Eramet in France has explained about the business results for 2008 and also expressed his forecast of the company's activities in 2009.
He said that "The Weda Bay nickel project, being currently developed in Indonesia, is scheduled to apply to AL process, which is Atmospheric Leaching with Sulfuric Acid Treatment. Eramet has been researching into this process from 10 years ago in order to utilize laterite ore in New Caledonia. This AL process will be possible to utilize for nickel refining in Indonesia and has differed from H PAL process or Ammonia Leaching process, both of which are hydrometallurgical processes for nickel refining."
He added that "Eramet has been aiming to stabilize prices of manganese ores but the current prices have had a considerable fall from that of USD 16 per Mn 1% CIF prevailed in October to December quarter of 2008. Eramet has thought that a stable price of manganese ore has to be higher than USD 5 per Mn 1% CIF, depending on new manganese projects to be planned hereafter. The demand for manganese ore from China has been currently increasing and, accordingly, prices of manganese ores are in the direction to rise on worldwide scale."
Mr Buffet said that "The agreement to develop nickel deposits in Prony and Creek Pernod of New Caledonia has been signed and these deposits represent one of the largest nickel oxide resources in the world. Eramet has held the project to produce 60,000 tonnes per annum of nickel from these deposits on a long run and the hydrometallurgical technology developed by Eramet's research centre in Trappes will be utilized for this nickel project. In combination with the Weda Bay nickel project in Indonesia, Eramet will be able to expand substantially a scale of nickel production."
Source: Steel Guru/Tex Report
He said that "The Weda Bay nickel project, being currently developed in Indonesia, is scheduled to apply to AL process, which is Atmospheric Leaching with Sulfuric Acid Treatment. Eramet has been researching into this process from 10 years ago in order to utilize laterite ore in New Caledonia. This AL process will be possible to utilize for nickel refining in Indonesia and has differed from H PAL process or Ammonia Leaching process, both of which are hydrometallurgical processes for nickel refining."
He added that "Eramet has been aiming to stabilize prices of manganese ores but the current prices have had a considerable fall from that of USD 16 per Mn 1% CIF prevailed in October to December quarter of 2008. Eramet has thought that a stable price of manganese ore has to be higher than USD 5 per Mn 1% CIF, depending on new manganese projects to be planned hereafter. The demand for manganese ore from China has been currently increasing and, accordingly, prices of manganese ores are in the direction to rise on worldwide scale."
Mr Buffet said that "The agreement to develop nickel deposits in Prony and Creek Pernod of New Caledonia has been signed and these deposits represent one of the largest nickel oxide resources in the world. Eramet has held the project to produce 60,000 tonnes per annum of nickel from these deposits on a long run and the hydrometallurgical technology developed by Eramet's research centre in Trappes will be utilized for this nickel project. In combination with the Weda Bay nickel project in Indonesia, Eramet will be able to expand substantially a scale of nickel production."
Source: Steel Guru/Tex Report
Tata Steel Profits Down 47 Per Cent
Tata Steel on Wednesday reported a 47 per cent drop in net profit for the quarter ended June 30, 2009 at Rs 789.83 crore as compared with Rs 1488.40 crore in the same quarter of previous fiscal.
Total income of the largest private sector steel producer during the latest quarter plunged to Rs 5,661.89 crore from the comparable quarter in 2008-09 at Rs 6165.14 crore. This, however, does not include the consolidated financials of Tata Steel — including Tata Steel Europe (formerly Corus U.K.) – whose June quarter figures would be published by the end of August 2009.
Tata Steel’s Managing Director B Muthuraman in his press briefing here maintained that Europe operations (Corus) for the latest quarter was similar to the last quarter of FY’09 in terms of sales volume-wise or value-wise.
Ascribing the reasons for decline in the net profit for the latest quarter, Muthuraman cited two reasons. One is the increase in the raw material price, especially coke, which accounted for 40 per cent rise in the incremental cost of raw materials, while other 60 per cent rise in the cost was due to rise in volumes of production.
Explaining further, he pointed out, that the cost of coke during Q1 this fiscal was $300 per tonne versus Q1’09 at $75-80 per tonne, while the raise of raw material in the latest quarter went up by about Rs 2000 per tonne of steel.
However, with the merger of Hooghly Met Coke & Power Company Ltd (HMPCL), a wholly owned subsidiary of Tata Steel being merged with the latter – as approved by both entities at their respective board meetings on Wednesday – with all assets and liabilities, Tata Steel would be able to make significant cost saving this fiscal with coke to be available in-house at par value.
Muthuraman pointed out adding: “Profitability will improve as raw material prices are easing and the full impact of capacity additions will be seen in this fiscal.”
During the quarter under review, the company’s steel output rose 31 per cent to 15.42 lakh tonnes versus 11.86 tonnes in Q1’09, while exports value-wise slipped to Rs 334.95 crore in the first quarter of the current fiscal from Rs 868.13 crore in the same quarter of last fiscal.
On the demand situation in macro terms, Tata Steel MD maintained that global steel demand was down 30-35 per cent on YoY (year-on-year) basis, though India and China continued to remain positive stories. Tata Steel, he continued, had gained in market share and that India saw a 6 per cent demand growth.
Tata Steel in its notes to accounts pointed out that an exchange gain of Rs 17.10 crore has been adjusted to the cost of capital assets during the current quarter and Rs 3.92 crore being amortization of cumulative net loss has been charged to Profit & loss account.
Had the company followed the previous practice of recognizing the translation gain or loss in the P&L account, the net profit for the latest quarter would have been higher by Rs 277.06 crore, it said.
Source: Deccan Herald
Total income of the largest private sector steel producer during the latest quarter plunged to Rs 5,661.89 crore from the comparable quarter in 2008-09 at Rs 6165.14 crore. This, however, does not include the consolidated financials of Tata Steel — including Tata Steel Europe (formerly Corus U.K.) – whose June quarter figures would be published by the end of August 2009.
Tata Steel’s Managing Director B Muthuraman in his press briefing here maintained that Europe operations (Corus) for the latest quarter was similar to the last quarter of FY’09 in terms of sales volume-wise or value-wise.
Ascribing the reasons for decline in the net profit for the latest quarter, Muthuraman cited two reasons. One is the increase in the raw material price, especially coke, which accounted for 40 per cent rise in the incremental cost of raw materials, while other 60 per cent rise in the cost was due to rise in volumes of production.
Explaining further, he pointed out, that the cost of coke during Q1 this fiscal was $300 per tonne versus Q1’09 at $75-80 per tonne, while the raise of raw material in the latest quarter went up by about Rs 2000 per tonne of steel.
However, with the merger of Hooghly Met Coke & Power Company Ltd (HMPCL), a wholly owned subsidiary of Tata Steel being merged with the latter – as approved by both entities at their respective board meetings on Wednesday – with all assets and liabilities, Tata Steel would be able to make significant cost saving this fiscal with coke to be available in-house at par value.
Muthuraman pointed out adding: “Profitability will improve as raw material prices are easing and the full impact of capacity additions will be seen in this fiscal.”
During the quarter under review, the company’s steel output rose 31 per cent to 15.42 lakh tonnes versus 11.86 tonnes in Q1’09, while exports value-wise slipped to Rs 334.95 crore in the first quarter of the current fiscal from Rs 868.13 crore in the same quarter of last fiscal.
On the demand situation in macro terms, Tata Steel MD maintained that global steel demand was down 30-35 per cent on YoY (year-on-year) basis, though India and China continued to remain positive stories. Tata Steel, he continued, had gained in market share and that India saw a 6 per cent demand growth.
Tata Steel in its notes to accounts pointed out that an exchange gain of Rs 17.10 crore has been adjusted to the cost of capital assets during the current quarter and Rs 3.92 crore being amortization of cumulative net loss has been charged to Profit & loss account.
Had the company followed the previous practice of recognizing the translation gain or loss in the P&L account, the net profit for the latest quarter would have been higher by Rs 277.06 crore, it said.
Source: Deccan Herald
Gloucester Coal Reports Slump In Coal Demand
Gloucester Coal has reported a significant slump in coking coal sales for the past quarter, but says global demand for its thermal product is still strong.
The Lower Hunter producer sold 131,000 tonnes of coking coal to export markets over the three months to the end of June, 38 per cent down on the same quarter last year.
While the coking coal market has taken the biggest hit from the global downturn, the company says the figure is an improvement on the March quarter this year, indicating demand is improving.
It has also recently signed a new coking coal contract with a Japanese steel mill.
Over the same quarter, Gloucester Coal sent almost 400,000 tonnes of thermal coal to export markets, 19 per cent up on the June quarter last year.
The company is currently embroiled in a battle with Gloucester residents who are opposing a planned 25-hectare extension of its Duralie mine.
Source: ABC
The Lower Hunter producer sold 131,000 tonnes of coking coal to export markets over the three months to the end of June, 38 per cent down on the same quarter last year.
While the coking coal market has taken the biggest hit from the global downturn, the company says the figure is an improvement on the March quarter this year, indicating demand is improving.
It has also recently signed a new coking coal contract with a Japanese steel mill.
Over the same quarter, Gloucester Coal sent almost 400,000 tonnes of thermal coal to export markets, 19 per cent up on the June quarter last year.
The company is currently embroiled in a battle with Gloucester residents who are opposing a planned 25-hectare extension of its Duralie mine.
Source: ABC
Vale Production Report Q2 2009
Vale S.A. (Vale) had a better operational performance in the second quarter of 2009, showing significant percentage increases in the production of iron ore (+23.1%), pellets (+47.4%), manganese ore (+387.9%), platinum (+18.6%), palladium (28.6%), kaolin (+40.5%), and thermal coal (+125.5%) relative to the low levels of 1Q09.
Over the last few months, a recovery in global industrial production has been taking place, a process in which Asia is at the forefront. However, it is worthwhile highlighting that the global economy is recovering from a very low level of activity, after a powerful demand shock.
Given the signals issued by some leading indicators of industrial production and the conclusion of the de-stocking process of the steel industry in some regions - such as Europe where it was running at very low levels of capacity utilization - it is likely that the gradual recovery of the global demand for minerals and metals will continue over the next six months which will lead to us to increase operational activities although at a more moderated pace than last year.
The whole press release is available @ www.vale.com/investors
Over the last few months, a recovery in global industrial production has been taking place, a process in which Asia is at the forefront. However, it is worthwhile highlighting that the global economy is recovering from a very low level of activity, after a powerful demand shock.
Given the signals issued by some leading indicators of industrial production and the conclusion of the de-stocking process of the steel industry in some regions - such as Europe where it was running at very low levels of capacity utilization - it is likely that the gradual recovery of the global demand for minerals and metals will continue over the next six months which will lead to us to increase operational activities although at a more moderated pace than last year.
The whole press release is available @ www.vale.com/investors
Lower Demand And Monsoons Hit India Iron Ore Exports
Lower demand from Chinese steel producers and the monsoon affecting shipments has cut India’s iron ore exports by 45% to 5.6 million tonnes in June over the previous month, says a joint study by a group of iron ore exporters.
The country’s iron ore exports in June was flat in comparison to the same month last year, as per the study conducted jointly by Goa Mineral Ore Exporters Association, Kudremukh Iron Ore Company and government-owned trading house MMTC.
In the April-June quarter, iron ore exports stood around 26 million tonne, the same as the corresponding quarter the previous year.
“Chinese steel makers were negotiating with global iron ore majors on pricing of ore in June. Due to this Indian exports were hit as steel companies in China postponed purchases hoping to see steep price cuts from ore suppliers,” said Federation of Indian Mineral Industries secretary general RK Sharma.
He said heavy rains also added to the woes of exporters, particularly in Goa, as it adversely impacted supplies to the major ports. The state alone accounts for around 40% of the country’s total exports.
Chinese steel makers are still negotiating with global suppliers like BHP Billiton and Rio Tinto asking for price cuts of up to 50% on annual long term iron ore contracts. The price at which ore will be supplied to China will become the benchmark price for domestic market as well. Globally, iron ore prices increased more than 25% to $80-90/tonne early this month from $65/tonne in March.
Around 80% of the country’s ore exports go to China, while the balance goes to Japan and Korea. India produces close to 200 million tonne of iron ore every year.
Source: Economic Times
The country’s iron ore exports in June was flat in comparison to the same month last year, as per the study conducted jointly by Goa Mineral Ore Exporters Association, Kudremukh Iron Ore Company and government-owned trading house MMTC.
In the April-June quarter, iron ore exports stood around 26 million tonne, the same as the corresponding quarter the previous year.
“Chinese steel makers were negotiating with global iron ore majors on pricing of ore in June. Due to this Indian exports were hit as steel companies in China postponed purchases hoping to see steep price cuts from ore suppliers,” said Federation of Indian Mineral Industries secretary general RK Sharma.
He said heavy rains also added to the woes of exporters, particularly in Goa, as it adversely impacted supplies to the major ports. The state alone accounts for around 40% of the country’s total exports.
Chinese steel makers are still negotiating with global suppliers like BHP Billiton and Rio Tinto asking for price cuts of up to 50% on annual long term iron ore contracts. The price at which ore will be supplied to China will become the benchmark price for domestic market as well. Globally, iron ore prices increased more than 25% to $80-90/tonne early this month from $65/tonne in March.
Around 80% of the country’s ore exports go to China, while the balance goes to Japan and Korea. India produces close to 200 million tonne of iron ore every year.
Source: Economic Times
48 Firms Eying Tanzania Coal Deposits
Tanzania said on Wednesday that 48 foreign and local firms were interested in developing coal and iron ore deposits in the southern part of the country.
The east African nation has proven coal deposits of 125.3 million tonnes in Mchuchuma in south west Tanzania near its border with Malawi and Mozambique.
It also has a proven iron ore deposit of 45 million tonnes in Liganga in the centre of the country.
"In our search for investors for the Mchuchuma coal project and the Liganga iron ore project, 48 investors have shown interest, and talks are ongoing to determine the best ones," Trade Minister Mary Nagu said in a ministerial presentation.
Interested firms include India's Tata Steel Company, Rio Tinto, BHP Billiton, China CAMC Engineering, Nava Bharat Singapore and Western Metals of Australia.
The state-run National Development Corporation said the Mchuchuma project would entail building a 400 MW power plant and about 200 km of high voltage power lines.
The whole project is estimated to cost about $660 million. The Liganga iron ore project is still at the feasibility study stage.
Tanzania already has significant investments in its mining sector, largely in gold, but is increasingly attracting interest in minerals like iron, uranium and nickel.
Source: Reuters
The east African nation has proven coal deposits of 125.3 million tonnes in Mchuchuma in south west Tanzania near its border with Malawi and Mozambique.
It also has a proven iron ore deposit of 45 million tonnes in Liganga in the centre of the country.
"In our search for investors for the Mchuchuma coal project and the Liganga iron ore project, 48 investors have shown interest, and talks are ongoing to determine the best ones," Trade Minister Mary Nagu said in a ministerial presentation.
Interested firms include India's Tata Steel Company, Rio Tinto, BHP Billiton, China CAMC Engineering, Nava Bharat Singapore and Western Metals of Australia.
The state-run National Development Corporation said the Mchuchuma project would entail building a 400 MW power plant and about 200 km of high voltage power lines.
The whole project is estimated to cost about $660 million. The Liganga iron ore project is still at the feasibility study stage.
Tanzania already has significant investments in its mining sector, largely in gold, but is increasingly attracting interest in minerals like iron, uranium and nickel.
Source: Reuters
Arcelor Mittal Not Buying Iron Ore On Spot Market
Lakshmi Mittal, chairman and chief executive of ArcelorMittal, the world's biggest steelmaker, said his company is not buying any iron ore on a spot basis and all its ore purchases were based on traditional contracts.
He did not give a price level for the contract-based purchases of iron ore, a key ingredient in steelmaking.
Source: Reuters
He did not give a price level for the contract-based purchases of iron ore, a key ingredient in steelmaking.
Source: Reuters
Wednesday, July 29, 2009
BHP Confirms 33 Percent Price Cut
BHP Billiton, the world's third-largest iron ore miner, has agreed with some customers, including some in China, to match the benchmark 33 price cut in annual iron ore prices, but has yet to settle on either pricing or contract terms for nearly half of its exports.
Chinese steel mills had been holding out for a deeper cut of at least 40 percent, arguing that it was a matter of survival for them, but their rivals in Japan and South Korea undermined that stance by recently settling for a cut of 33 percent.
BHP Billiton, giving an update on its pricing talks for the current fiscal year, declined to say which of its customers had been party to the 33-44 percent cut for contracted shipments of ore fines and lumps, but industry sources in China have confirmed that some major Chinese steel-makers had done so.
BHP, which has actively promoted a shift towards more market based pricing for iron ore, said that it has agreed to the lower annual price for 23 percent of the group's total sales volumes, while it had agreed to sell 30 percent of its ore on the basis of quarterly negotiations, spot market prices or indices.
"Negotiations for the remaining 47 per cent of iron ore volumes are ongoing," the company said in a one-page statement.
Source: Reuters
Chinese steel mills had been holding out for a deeper cut of at least 40 percent, arguing that it was a matter of survival for them, but their rivals in Japan and South Korea undermined that stance by recently settling for a cut of 33 percent.
BHP Billiton, giving an update on its pricing talks for the current fiscal year, declined to say which of its customers had been party to the 33-44 percent cut for contracted shipments of ore fines and lumps, but industry sources in China have confirmed that some major Chinese steel-makers had done so.
BHP, which has actively promoted a shift towards more market based pricing for iron ore, said that it has agreed to the lower annual price for 23 percent of the group's total sales volumes, while it had agreed to sell 30 percent of its ore on the basis of quarterly negotiations, spot market prices or indices.
"Negotiations for the remaining 47 per cent of iron ore volumes are ongoing," the company said in a one-page statement.
Source: Reuters
Investors Wait As China Steel Executives Meet
China's top steel executives begin a bi-annnual two-day meeting on Wednesday under unprecedented global scrutiny as investors wait to see if the world's biggest consumer bows to miners over iron ore prices.
Run-of-the-mill issues, such as first-half profits and oversupply, are likely to take a back seat at the meeting of the China Iron and Steel Association, which has led this year's marathon negotiations over contract iron ore prices, holding out for a bigger cut than agreed by its Asian rivals.
While analysts maintain that China has almost no choice but to accede to demands for a 33 percent price cut with miners Rio Tinto, BHP Billito) and Brazil's Vale, as recently as last week CISA's No. 2 official said such a deal was "impossible".
Source: Reuters/Forbes
Run-of-the-mill issues, such as first-half profits and oversupply, are likely to take a back seat at the meeting of the China Iron and Steel Association, which has led this year's marathon negotiations over contract iron ore prices, holding out for a bigger cut than agreed by its Asian rivals.
While analysts maintain that China has almost no choice but to accede to demands for a 33 percent price cut with miners Rio Tinto, BHP Billito) and Brazil's Vale, as recently as last week CISA's No. 2 official said such a deal was "impossible".
Source: Reuters/Forbes
Tuesday, July 28, 2009
Vale Claims China Iron Ore Sales At Contract Price
Vale SA, the world’s largest iron- ore producer, said about half its shipments to China are being bought at the same price levels agreed in annual contracts with mills in other nations.
Some Chinese steelmakers are unofficially accepting the new benchmark ore prices, which are 28 percent lower than last year, a Vale spokeswoman, who declined to be identified citing company policy, said by phone today from Rio de Janeiro.
China, the world’s largest iron-ore consumer, has sought greater price cuts than those obtained by mills in countries including Japan after the economic crisis reduced demand for the raw material. Ore prices in the market for immediate delivery have risen above contract prices, weakening China’s position.
“Iron-ore producers including Vale will be successful in their quest for the same benchmark prices in China,” said Tony Rizzuto, New York-based analyst with Dahlman Rose & Co. in a telephone interview today. Lower prices for the Chinese “are unlikely because of China’s robust steel production.”
Vale agreed in June to cut prices for iron-ore fines, the benchmark product, by 28 percent with companies including Japan’s Nippon Steel Corp. It also reduced prices by 44 percent for lump ore and 48 percent for pellets.
The cut was the first in seven years after a credit crisis pared demand. China agreed in last year’s contract prices to pay about 65 percent more for fines to Vale and about 85 percent to competitors Rio Tinto Group and BHP Billiton Ltd.
“The benchmark is already set,” Vale Chief Executive Officer Roger Agnelli said June 25, referring to the agreements with steelmakers in Asia and Europe, including ArcelorMittal. “But we won’t leave the Chinese without ore.”
Chinese mills which haven’t accepted purchases at the new benchmark price levels are continuing to buy Vale’s ore at spot market prices, according to the spokeswoman.
China buys about 70 percent of the world’s seaborne iron- ore supplies, Vale’s Ferrous Executive Director Jose Carlos Martins said in May.
Vale, which currently supplies less than one-third of China’s iron-ore imports, may win short-term market share in the Asian country because of the current “strife” between its rival Rio Tinto Group and China, Rizzuto said. Chinese authorities detained four Rio executives on July 5 on allegations that they stole state secrets.
The incident is causing spot-market iron-ore prices to rise at a time when steelmakers elsewhere in Asia and in Europe are increasing ore purchases as steelmaking levels rise, Gilberto Cardoso, Rio de Janeiro-based analyst with Banif Securities, said in a telephone interview.
Source: Bloomberg
Some Chinese steelmakers are unofficially accepting the new benchmark ore prices, which are 28 percent lower than last year, a Vale spokeswoman, who declined to be identified citing company policy, said by phone today from Rio de Janeiro.
China, the world’s largest iron-ore consumer, has sought greater price cuts than those obtained by mills in countries including Japan after the economic crisis reduced demand for the raw material. Ore prices in the market for immediate delivery have risen above contract prices, weakening China’s position.
“Iron-ore producers including Vale will be successful in their quest for the same benchmark prices in China,” said Tony Rizzuto, New York-based analyst with Dahlman Rose & Co. in a telephone interview today. Lower prices for the Chinese “are unlikely because of China’s robust steel production.”
Vale agreed in June to cut prices for iron-ore fines, the benchmark product, by 28 percent with companies including Japan’s Nippon Steel Corp. It also reduced prices by 44 percent for lump ore and 48 percent for pellets.
The cut was the first in seven years after a credit crisis pared demand. China agreed in last year’s contract prices to pay about 65 percent more for fines to Vale and about 85 percent to competitors Rio Tinto Group and BHP Billiton Ltd.
“The benchmark is already set,” Vale Chief Executive Officer Roger Agnelli said June 25, referring to the agreements with steelmakers in Asia and Europe, including ArcelorMittal. “But we won’t leave the Chinese without ore.”
Chinese mills which haven’t accepted purchases at the new benchmark price levels are continuing to buy Vale’s ore at spot market prices, according to the spokeswoman.
China buys about 70 percent of the world’s seaborne iron- ore supplies, Vale’s Ferrous Executive Director Jose Carlos Martins said in May.
Vale, which currently supplies less than one-third of China’s iron-ore imports, may win short-term market share in the Asian country because of the current “strife” between its rival Rio Tinto Group and China, Rizzuto said. Chinese authorities detained four Rio executives on July 5 on allegations that they stole state secrets.
The incident is causing spot-market iron-ore prices to rise at a time when steelmakers elsewhere in Asia and in Europe are increasing ore purchases as steelmaking levels rise, Gilberto Cardoso, Rio de Janeiro-based analyst with Banif Securities, said in a telephone interview.
Source: Bloomberg
India Eyes Australian Coke Assets
India is about to embark on a program of rapid coal sector acquisitions in Australia as it looks to plug a huge annual gap between supply and demand expected in the next three years.
State-owned Coal India, the world's biggest coal producer, has called for expressions of interest from potential coal mining partners by the end of August as it looks to fill unprecedented growth in local demand.
"The gap between coal demand on Coal India and envisaged domestic coal supply potential in 2011-12 is in excess of 200 million tonnes," Coal India said in the expression of interest document obtained by The Australian.
"The emerging business environment, therefore, necessitates immediate acquisition of coal resources abroad," the company said.
Australia and the US have been targeted for coking coal investment, with Indonesia and South Africa earmarked for thermal coal.
Under its 11th five-year development plan, India is aiming to provide all villages and houses below the poverty line with power and to boost economic growth to 10 per cent by 2011-12.
This is expected to push annual combined Indian demand for coking and thermal coal to more than 700 million tonnes a year.
Coal India produces about 420 million tonnes of coal a year and makes up the vast bulk of India's domestic coal production.
The expression of interest invitation says Coal India's short-term ambition is to buy equity stakes in operating mines and to tie up long-term offtake agreements to immediately start imports.
In the medium term, it is looking to take a larger stake in developing mines and new projects that would come into production in two or three years.
India's push for Australian coking coal assets comes as record Chinese demand is buoying the sector and traditional buyers are returning, though it is unclear how long this fresh demand will hold up.
India, which before China's recent surge was the second-biggest buyer of Australian coking coal after Japan, has little presence on the mining side here, which is dominated by global miners BHP Billiton, Rio Tinto, Xstrata, AngloAmerican and Peabody Energy.
ASX-listed Gujarat NRE Minerals, which is 82 per cent owned by Indian importer Gujarat NRE Coke, has two coking coal mines near Wollongong and hopes to boost production here from less than 1 million tonnes a year to 7 million tonnes a year.
Gujarat also has a hostile bid on the table for minnow Rey Resources, which has a large thermal coal resource in the Canning Basin in northern Western Australia that Rey wants to develop to feed Indian demand.
Some recent Indian estimates of the annual coal shortfall predict higher domestic production and see imports of only 50 million to 100 million tonnes a year.
However, Peabody president Rick Navarre last week said Indian officials had told him up to 200 million tonnes a year of imports would be needed over the next five years.
"Even if only half of this occurs, it is a tremendous demand increase for the seaborne markets," he said.
Source: The Australian
State-owned Coal India, the world's biggest coal producer, has called for expressions of interest from potential coal mining partners by the end of August as it looks to fill unprecedented growth in local demand.
"The gap between coal demand on Coal India and envisaged domestic coal supply potential in 2011-12 is in excess of 200 million tonnes," Coal India said in the expression of interest document obtained by The Australian.
"The emerging business environment, therefore, necessitates immediate acquisition of coal resources abroad," the company said.
Australia and the US have been targeted for coking coal investment, with Indonesia and South Africa earmarked for thermal coal.
Under its 11th five-year development plan, India is aiming to provide all villages and houses below the poverty line with power and to boost economic growth to 10 per cent by 2011-12.
This is expected to push annual combined Indian demand for coking and thermal coal to more than 700 million tonnes a year.
Coal India produces about 420 million tonnes of coal a year and makes up the vast bulk of India's domestic coal production.
The expression of interest invitation says Coal India's short-term ambition is to buy equity stakes in operating mines and to tie up long-term offtake agreements to immediately start imports.
In the medium term, it is looking to take a larger stake in developing mines and new projects that would come into production in two or three years.
India's push for Australian coking coal assets comes as record Chinese demand is buoying the sector and traditional buyers are returning, though it is unclear how long this fresh demand will hold up.
India, which before China's recent surge was the second-biggest buyer of Australian coking coal after Japan, has little presence on the mining side here, which is dominated by global miners BHP Billiton, Rio Tinto, Xstrata, AngloAmerican and Peabody Energy.
ASX-listed Gujarat NRE Minerals, which is 82 per cent owned by Indian importer Gujarat NRE Coke, has two coking coal mines near Wollongong and hopes to boost production here from less than 1 million tonnes a year to 7 million tonnes a year.
Gujarat also has a hostile bid on the table for minnow Rey Resources, which has a large thermal coal resource in the Canning Basin in northern Western Australia that Rey wants to develop to feed Indian demand.
Some recent Indian estimates of the annual coal shortfall predict higher domestic production and see imports of only 50 million to 100 million tonnes a year.
However, Peabody president Rick Navarre last week said Indian officials had told him up to 200 million tonnes a year of imports would be needed over the next five years.
"Even if only half of this occurs, it is a tremendous demand increase for the seaborne markets," he said.
Source: The Australian
Mitsubish May Abandon Full-Production Plan
Mitsubishi Materials Corp., Japan’s third-largest copper smelter, may abandon a plan to return to full production in its fiscal second half as the nation recovers slowly from its worst postwar recession.
“Unless domestic demand rebounds further from the current level, we may not be able to return production to normal volumes in October,” Kenichi Watase, general manager at Tokyo-based Mitsubishi Materials’ sales department, said yesterday. Output in the six months to Sept. 30 would be down about 10 percent from capacity, he said in an interview.
Japan’s economy is “in a difficult situation,” the Cabinet Office said in a monthly report on July 13, even as the recession moderates. Prime Minister Taro Aso has pledged 25 trillion yen ($263 billion) to drive a recovery. Mitsubishi Materials and rivals including Pan Pacific Copper Co., Japan’s largest copper smelter, cut output as the downturn slashed demand for the metal used in wires and tubes.
“Japanese metal producers may have difficulty ending output cuts as the economy may resume a contraction late this year or early next year on fading effects of the government’s stimulus measures,” said Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fujitomo Co.
Copper for delivery in three months on the London Metal Exchange gained 0.5 percent to $5,630 a metric ton at 5:16 p.m. in Tokyo. Reduced output and record imports by China, the biggest consumer, helped the metal gain 83 percent this year.
Mitsubishi Materials lost 0.4 percent to 269 yen on the Tokyo Stock Exchange.
The company in April forecast domestic first-half output of 145,554 tons, down from 160,410 tons a year earlier. Mitsubishi Materials may fall short of the plan by 300 tons to 400 tons, even as it is currently raising output at its two domestic plants to near capacity to offset disruptions caused by accidents, Watase said.
The company hasn’t decided on production levels for October onward, he said.
“It is uncertain whether demand will keep rising in the second half,” he said. A recovery in demand from carmakers was not large enough to offset losses in other industries, and demand from the construction sector, the largest user of the metal in Japan, remains weak, he added.
Japan’s total copper shipments rose after hitting bottom by March, led by rising sales of hybrid cars in Japan and exports to China, where the government’s 4-trillion-yuan ($586 billion) stimulus boosted consumption, he said.
Mitsubishi Materials expects to sell about 70 percent of its copper in Japan and the rest overseas in the six months to Sept. 30, he said.
First-half output may fall short of the plan after Onahama Smelting and Refining Co. reduced concentrate processing by 30 percent because of a fire in March. Mitsubishi Materials owns 50 percent of the Onahama smelter, north of Tokyo, which has capacity of 258,000 tons a year.
The company halted operation of its 220,000-ton Naoshima smelter in western Japan for 10 days in June because of “troubles” at the plant, Watase said. About 800 tons of production is lost for each one-day of suspension, he added.
Copper production at the Gresik smelter in Indonesia, owned 60.5 percent by in Mitsubishi Materials, increased to 140,000 tons in the six months ended June 30 from 113,000 tons in the same period last year, as Southeast Asian demand was less affected by the global economic slump, Watase said.
More than half the metal produced is sold in Indonesia, with the rest shipped to countries such as Malaysia, Thailand and Vietnam, he said.
Capacity will rise to 300,000 tons a year in September from 285,000 tons after completion of an expansion, Watase said.
“It will depend on market conditions whether we will run the smelter at full capacity or not,” he said. Mitsubishi Materials takes more than 70 percent of the metal produced at the PT Smelting operation, which is also owned 25 percent by Freeport-MacMoran Copper & Gold Inc., 9.5 percent by Mitsubishi Corp. and 5 percent by Nippon Mining Holdings Inc.
“Unless domestic demand rebounds further from the current level, we may not be able to return production to normal volumes in October,” Kenichi Watase, general manager at Tokyo-based Mitsubishi Materials’ sales department, said yesterday. Output in the six months to Sept. 30 would be down about 10 percent from capacity, he said in an interview.
Japan’s economy is “in a difficult situation,” the Cabinet Office said in a monthly report on July 13, even as the recession moderates. Prime Minister Taro Aso has pledged 25 trillion yen ($263 billion) to drive a recovery. Mitsubishi Materials and rivals including Pan Pacific Copper Co., Japan’s largest copper smelter, cut output as the downturn slashed demand for the metal used in wires and tubes.
“Japanese metal producers may have difficulty ending output cuts as the economy may resume a contraction late this year or early next year on fading effects of the government’s stimulus measures,” said Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fujitomo Co.
Copper for delivery in three months on the London Metal Exchange gained 0.5 percent to $5,630 a metric ton at 5:16 p.m. in Tokyo. Reduced output and record imports by China, the biggest consumer, helped the metal gain 83 percent this year.
Mitsubishi Materials lost 0.4 percent to 269 yen on the Tokyo Stock Exchange.
The company in April forecast domestic first-half output of 145,554 tons, down from 160,410 tons a year earlier. Mitsubishi Materials may fall short of the plan by 300 tons to 400 tons, even as it is currently raising output at its two domestic plants to near capacity to offset disruptions caused by accidents, Watase said.
The company hasn’t decided on production levels for October onward, he said.
“It is uncertain whether demand will keep rising in the second half,” he said. A recovery in demand from carmakers was not large enough to offset losses in other industries, and demand from the construction sector, the largest user of the metal in Japan, remains weak, he added.
Japan’s total copper shipments rose after hitting bottom by March, led by rising sales of hybrid cars in Japan and exports to China, where the government’s 4-trillion-yuan ($586 billion) stimulus boosted consumption, he said.
Mitsubishi Materials expects to sell about 70 percent of its copper in Japan and the rest overseas in the six months to Sept. 30, he said.
First-half output may fall short of the plan after Onahama Smelting and Refining Co. reduced concentrate processing by 30 percent because of a fire in March. Mitsubishi Materials owns 50 percent of the Onahama smelter, north of Tokyo, which has capacity of 258,000 tons a year.
The company halted operation of its 220,000-ton Naoshima smelter in western Japan for 10 days in June because of “troubles” at the plant, Watase said. About 800 tons of production is lost for each one-day of suspension, he added.
Copper production at the Gresik smelter in Indonesia, owned 60.5 percent by in Mitsubishi Materials, increased to 140,000 tons in the six months ended June 30 from 113,000 tons in the same period last year, as Southeast Asian demand was less affected by the global economic slump, Watase said.
More than half the metal produced is sold in Indonesia, with the rest shipped to countries such as Malaysia, Thailand and Vietnam, he said.
Capacity will rise to 300,000 tons a year in September from 285,000 tons after completion of an expansion, Watase said.
“It will depend on market conditions whether we will run the smelter at full capacity or not,” he said. Mitsubishi Materials takes more than 70 percent of the metal produced at the PT Smelting operation, which is also owned 25 percent by Freeport-MacMoran Copper & Gold Inc., 9.5 percent by Mitsubishi Corp. and 5 percent by Nippon Mining Holdings Inc.
CISA Urges Spot Trade Abolition
Senior Chinese steel industry officials called on Beijing to consider abolishing spot iron ore trade and sharply reduce the number of licensed importers, which they blame for undermining their position in deadlocked iron ore price talks, Chinese media said.
Luo Bingsheng, vice chairman of the China Iron and Steel Association (CISA), the de facto negotiator in protracted iron ore price talks with global miners, said China must move immediately to tighten regulation of its iron ore importing structure, the Beijing Morning Post reported on Tuesday.
CISA has blamed small and medium-sized steelmakers for propping up spot ore prices, putting CISA, representing mostly big mills, in a difficult position as it seeks larger price cuts than other steelmakers for term supplies.
Li Xinchuang, vice president of the China Metallurgical Industry Planning and Research Institute, proposed that Beijing cut the number of licensed iron ore importers to five to 10 firms, from the current 112, to consolidate the industry, the paper said.
Both officials were speaking at a recent steel industry meeting held by the Ministry of Industry and Information Technology, which oversees the sector.
"We must have a 'Big Bang' to regulate iron ore trade. Otherwise we will continue to suffer heavy losses, the competitive power of steel mills will remain weakened, and the tragedy will persist," Li was quoted as saying.
China, the world's largest steel-making country with an estimated annual capacity of 650 million tonnes, is the sole market that purchases the key blast furnace feedstock via both long-term contracts and spot deals.
There are 112 steelmakers and trading houses licensed to import iron ore into China but traders said thousands of firms have managed to enter the business, spurred by strong demand for ore.
CISA, the de facto negotiator in price talks with miners Vale, Rio Tinto and BHP Billiton, is insisting China deserves a better price than others as the world's top buyer of the steel-making input.
The annual price negotiations between Chinese steelmakers and miners have degenerated this year into an international row, with China alleging that Rio Tinto employees were involved in spying and bribing Chinese officials.
Source: Reuters
Luo Bingsheng, vice chairman of the China Iron and Steel Association (CISA), the de facto negotiator in protracted iron ore price talks with global miners, said China must move immediately to tighten regulation of its iron ore importing structure, the Beijing Morning Post reported on Tuesday.
CISA has blamed small and medium-sized steelmakers for propping up spot ore prices, putting CISA, representing mostly big mills, in a difficult position as it seeks larger price cuts than other steelmakers for term supplies.
Li Xinchuang, vice president of the China Metallurgical Industry Planning and Research Institute, proposed that Beijing cut the number of licensed iron ore importers to five to 10 firms, from the current 112, to consolidate the industry, the paper said.
Both officials were speaking at a recent steel industry meeting held by the Ministry of Industry and Information Technology, which oversees the sector.
"We must have a 'Big Bang' to regulate iron ore trade. Otherwise we will continue to suffer heavy losses, the competitive power of steel mills will remain weakened, and the tragedy will persist," Li was quoted as saying.
China, the world's largest steel-making country with an estimated annual capacity of 650 million tonnes, is the sole market that purchases the key blast furnace feedstock via both long-term contracts and spot deals.
There are 112 steelmakers and trading houses licensed to import iron ore into China but traders said thousands of firms have managed to enter the business, spurred by strong demand for ore.
CISA, the de facto negotiator in price talks with miners Vale, Rio Tinto and BHP Billiton, is insisting China deserves a better price than others as the world's top buyer of the steel-making input.
The annual price negotiations between Chinese steelmakers and miners have degenerated this year into an international row, with China alleging that Rio Tinto employees were involved in spying and bribing Chinese officials.
Source: Reuters
Xstrata Ferrochrome Production Falls 60%
Miner Xstrata said ferrochrome production was 60% lower in the first half of 2009 compared with the same period last year.
But the group saw increased production volumes of copper, thermal coal, mined nickel and zinc compared to the first half of 2008.
Ferrochrome production was down due to the temporary suspension of up to 80% of production capacity through late 2008 and early 2009, it said.
Overall PGM volumes increased marginally compared to the same period last year, despite production being adversely affected by a combination of above average rainfall.
Thermal coal production increased by 18%, due to higher production at the Newlands complex in Australia and the contribution of the acquired Prodeco operations in Colombia
Increased output from Mount Isa zinc and McArthur River expansions, together with growth from the new Perseverance mine, resulted in a 30% increase in zinc in concentrate.
Mined copper production increased by 1%, while total mined nickel production increased 7% in the first half of 2009 due to increased production and higher grades from Raglan and Xstrata Nickel Australasia (XNA)
Xstrata Coal's production volumes for the six months increased by 4.2 million tonnes or 11%, while by-product gold production decreased by 11% due to the weather issues at Ernest Henry, partially offset by higher gold production at Tintaya.
Source: Sharecast
But the group saw increased production volumes of copper, thermal coal, mined nickel and zinc compared to the first half of 2008.
Ferrochrome production was down due to the temporary suspension of up to 80% of production capacity through late 2008 and early 2009, it said.
Overall PGM volumes increased marginally compared to the same period last year, despite production being adversely affected by a combination of above average rainfall.
Thermal coal production increased by 18%, due to higher production at the Newlands complex in Australia and the contribution of the acquired Prodeco operations in Colombia
Increased output from Mount Isa zinc and McArthur River expansions, together with growth from the new Perseverance mine, resulted in a 30% increase in zinc in concentrate.
Mined copper production increased by 1%, while total mined nickel production increased 7% in the first half of 2009 due to increased production and higher grades from Raglan and Xstrata Nickel Australasia (XNA)
Xstrata Coal's production volumes for the six months increased by 4.2 million tonnes or 11%, while by-product gold production decreased by 11% due to the weather issues at Ernest Henry, partially offset by higher gold production at Tintaya.
Source: Sharecast
Mirabela, Vale Inco End Nickel Farm Agreement
Australian mining company, Mirabela, has announced that Vale Inco has agreed to terminate their farm in agreement to explore nickel sulphide on Santa Rita and Palestina.
Inco has not mined in the quarry for more than two years. Mirabela owns 100% shares of Santa Rita nickel mine, which was founded nineteen years ago with 260,000 tonnes of nickel ore output per year.
Source: Steel Guru
Inco has not mined in the quarry for more than two years. Mirabela owns 100% shares of Santa Rita nickel mine, which was founded nineteen years ago with 260,000 tonnes of nickel ore output per year.
Source: Steel Guru
AML Unveils Ferromanganese Strategy
Mr Hirotaka Suzuki, president of Asia Minerals Limited, commented on the strategies for manganese after AML had acquired Jinzhou Nichiden Ferroalloy Co Limited in China.
He said that "AML has acquired more than 80% of the shares in Jinzhou Nichiden Ferroalloy and this new company, under control of AML, has inaugurated as AML Jinzhou Resource Limited. Its top executives are Mr Hirotaka Suzuki chairman of the company and Mr Xie Xinmin president of the company and GM of the plant. Mr Xie president had been engaged previously in GM of its Inner Mongolia ferroalloy plant. Accordingly, Mr Adam Jiang will be promoted from VP of this plant at present to president of IMA as the successor to Mr Xie Xinmin."
He said the partner at Chinese side for AML Jinzhou Resource is CITIC Jinzhou Ferroalloy Works, which has been exclusively engaged in production of medium- and low-carbon ferromanganese with an annual capacity of 100,000 tonnes and the cooperation between AML and CITIC will be enlarged through purchases of raw materials and sales of products. Jinzhou Plant has advantages, which many of major steel mills have existed in three provinces of East North China and are rising the active demand for ferroalloys.
Mr Suzuki said that "Both companies of Nippon Denko and Toyota Tsusho will acquire 10% and 5% respectively of the shares in AML Jinzhou Resource and cooperate with this new company on the sales to mainly Nippon Steel and steel companies in Nagoya area."
He said that the projects planned by AML for the future are to construct number 3 plant in China with annual capacity of 100,000 tonnes and also new plants in East South Asia, Russia and the Middle and Near East to produce ferroalloys, and AML has intended to set up the structure to produce 500,000 tonnes per annum of ferroalloys until 2014.
Source: Steel Guru
He said that "AML has acquired more than 80% of the shares in Jinzhou Nichiden Ferroalloy and this new company, under control of AML, has inaugurated as AML Jinzhou Resource Limited. Its top executives are Mr Hirotaka Suzuki chairman of the company and Mr Xie Xinmin president of the company and GM of the plant. Mr Xie president had been engaged previously in GM of its Inner Mongolia ferroalloy plant. Accordingly, Mr Adam Jiang will be promoted from VP of this plant at present to president of IMA as the successor to Mr Xie Xinmin."
He said the partner at Chinese side for AML Jinzhou Resource is CITIC Jinzhou Ferroalloy Works, which has been exclusively engaged in production of medium- and low-carbon ferromanganese with an annual capacity of 100,000 tonnes and the cooperation between AML and CITIC will be enlarged through purchases of raw materials and sales of products. Jinzhou Plant has advantages, which many of major steel mills have existed in three provinces of East North China and are rising the active demand for ferroalloys.
Mr Suzuki said that "Both companies of Nippon Denko and Toyota Tsusho will acquire 10% and 5% respectively of the shares in AML Jinzhou Resource and cooperate with this new company on the sales to mainly Nippon Steel and steel companies in Nagoya area."
He said that the projects planned by AML for the future are to construct number 3 plant in China with annual capacity of 100,000 tonnes and also new plants in East South Asia, Russia and the Middle and Near East to produce ferroalloys, and AML has intended to set up the structure to produce 500,000 tonnes per annum of ferroalloys until 2014.
Source: Steel Guru
Newcastle Coal Exports Little-Changed
Coal shipments from Australia’s Newcastle port, the world’s biggest export harbour for the fuel, were little changed last week while the number of vessels waiting to load decreased.
The volume exported in the week ended 7 a.m. local time yesterday was 1.94 million metric tons, compared with 1.95 million tons a week earlier, Newcastle Port Corp. said on its Web site. Forty ships, waiting to load 3.3 million tons of coal, were outside the harbor, down from 48 vessels.
Coal ships queued for an average 12.4 days to load, down from 14.2 days a week earlier, Newcastle Port said. The waiting time compared with 0.6 day for general cargo vessels, it said.
Power-station coal prices at Newcastle port, a benchmark for Asia, rose 2.4 percent to $78.04 a ton in the week ended July 24, according to the globalCOAL NEWC Index. It is the highest level since the week ended Feb. 13.
Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship coal through Newcastle.
Source: Bloomberg
The volume exported in the week ended 7 a.m. local time yesterday was 1.94 million metric tons, compared with 1.95 million tons a week earlier, Newcastle Port Corp. said on its Web site. Forty ships, waiting to load 3.3 million tons of coal, were outside the harbor, down from 48 vessels.
Coal ships queued for an average 12.4 days to load, down from 14.2 days a week earlier, Newcastle Port said. The waiting time compared with 0.6 day for general cargo vessels, it said.
Power-station coal prices at Newcastle port, a benchmark for Asia, rose 2.4 percent to $78.04 a ton in the week ended July 24, according to the globalCOAL NEWC Index. It is the highest level since the week ended Feb. 13.
Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship coal through Newcastle.
Source: Bloomberg
Monday, July 27, 2009
Philippine Nickel Miner Aims For First Big Shipment
A local miner will spend almost P100 million to start commercial operations in its nickel mine in northeastern Mindanao and produce its first large shipment this year, a senior official said late last week.
"Based on a seven-year mining plan prepared by a competent mining engineer, investment requirements on the delineated 86 hectares amount to P99.417 million," Concepcion C. Sagun, vice-president of Century Peak Corp., said in a presentation to officials of the Mines and Geosciences Bureau.
The total investment for the open-pit project on Dinagat Island consists of P25.5 million for mine development, P27.81 million for capital expenditures, and P46.107 million for working capital, she added.
The area has total resources of 11.900 million wet metric tons of nickel ore, enough to sustain operations for at least 10 years.
Initial production will be one million wet metric tons of ore per year with about 1.1% nickel grade. This will double during peak production, Ms. Sagun said.
About 100,000 wet metric tons of nickel ore will be sold to China, she said. At $10 per pound of nickel, Century Peak will earn an estimated revenue of P616.320 million, she said.
Nickel prices for cash buyers on Friday closed at $7.39 per pound, up from the average $4.75 per pound in the first quarter but lower than the record $24 per pound early last year, data from the London Metal Exchange show.
Asked where the miner will source its funds, Ms. Sagun said "the funds will be from equity contribution. But the problem right now is that there is a worldwide slump."
"We might go into loans, equity and placement in stocks," she told reporters, adding that parent company Century Peak Metals Holdings Corp. might list on the stock exchange.
The miner is also looking for a foreign partner. "We are looking into [partnering with foreigners] especially in smelting because that is capital intensive," she said.
Ms. Sagun said Century Peak Metals Holdings would operate the nickel smelting plant, which will ship processed nickel ore to China.
The tenement was held by Casiguran Mining Corp. from 1992 to 1995. It was later declared a non-performing tenement by the Environment department and was taken from Casiguran. In 2006, it was reinstated to Casiguran, which transferred the rights to Century Peak in the same year.
Century Peak also has nickel projects in Zambales and Palawan. It has eight other nickel properties on Dinagat Island, which includes the 1,935-hectare Rapid City 3 nickel project, the 463-hectare Rapid City 2 project, and the 71-hectare Min Pro area.
Source: Business World Online
"Based on a seven-year mining plan prepared by a competent mining engineer, investment requirements on the delineated 86 hectares amount to P99.417 million," Concepcion C. Sagun, vice-president of Century Peak Corp., said in a presentation to officials of the Mines and Geosciences Bureau.
The total investment for the open-pit project on Dinagat Island consists of P25.5 million for mine development, P27.81 million for capital expenditures, and P46.107 million for working capital, she added.
The area has total resources of 11.900 million wet metric tons of nickel ore, enough to sustain operations for at least 10 years.
Initial production will be one million wet metric tons of ore per year with about 1.1% nickel grade. This will double during peak production, Ms. Sagun said.
About 100,000 wet metric tons of nickel ore will be sold to China, she said. At $10 per pound of nickel, Century Peak will earn an estimated revenue of P616.320 million, she said.
Nickel prices for cash buyers on Friday closed at $7.39 per pound, up from the average $4.75 per pound in the first quarter but lower than the record $24 per pound early last year, data from the London Metal Exchange show.
Asked where the miner will source its funds, Ms. Sagun said "the funds will be from equity contribution. But the problem right now is that there is a worldwide slump."
"We might go into loans, equity and placement in stocks," she told reporters, adding that parent company Century Peak Metals Holdings Corp. might list on the stock exchange.
The miner is also looking for a foreign partner. "We are looking into [partnering with foreigners] especially in smelting because that is capital intensive," she said.
Ms. Sagun said Century Peak Metals Holdings would operate the nickel smelting plant, which will ship processed nickel ore to China.
The tenement was held by Casiguran Mining Corp. from 1992 to 1995. It was later declared a non-performing tenement by the Environment department and was taken from Casiguran. In 2006, it was reinstated to Casiguran, which transferred the rights to Century Peak in the same year.
Century Peak also has nickel projects in Zambales and Palawan. It has eight other nickel properties on Dinagat Island, which includes the 1,935-hectare Rapid City 3 nickel project, the 463-hectare Rapid City 2 project, and the 71-hectare Min Pro area.
Source: Business World Online
One-Fifth Of Goa Iron Ore "Illegally Mined"
The Indian news agency, IANS, has reported that Goa’s Leader of the Opposition, Mr Manohar Parrikar, has alleged that nearly one-fifth of the state’s mineral exports are illegally mined.
Speaking during the question hour of the budget session of the Goa legislative assembly on Friday, Mr Parrikar said that “Nearly 18% of the 33 crore tonnes exported is illegally mined. This can be ascertained from the difference in the ore officially extracted in Goa and the amount of ore exported.”
He also charged the government with being hand-in-glove with the illegal mining lobby by saying “Why is the government not acting on this. There is evidence to show that the government has no will to penalize illegal mining. The high level committee headed by chief forest conservator Shashi Kumar points out several instances where illegal mining is being carried out in contravention of forest norms and yet these firms are extracting thousands of tonnes of ore.”
Illegal mining has become a hotly debated issue in Goa, with green activists alleging that several ministers in the Congress led coalition government were indulging in the illegal extraction of ore. Nearly 100 mining tracts have been leased out for extraction of manganese, iron and bauxite ores in Goa, which exports about 33 million tonnes of ore annually, primarily to China and Japan.
Source: Steel Guru
Speaking during the question hour of the budget session of the Goa legislative assembly on Friday, Mr Parrikar said that “Nearly 18% of the 33 crore tonnes exported is illegally mined. This can be ascertained from the difference in the ore officially extracted in Goa and the amount of ore exported.”
He also charged the government with being hand-in-glove with the illegal mining lobby by saying “Why is the government not acting on this. There is evidence to show that the government has no will to penalize illegal mining. The high level committee headed by chief forest conservator Shashi Kumar points out several instances where illegal mining is being carried out in contravention of forest norms and yet these firms are extracting thousands of tonnes of ore.”
Illegal mining has become a hotly debated issue in Goa, with green activists alleging that several ministers in the Congress led coalition government were indulging in the illegal extraction of ore. Nearly 100 mining tracts have been leased out for extraction of manganese, iron and bauxite ores in Goa, which exports about 33 million tonnes of ore annually, primarily to China and Japan.
Source: Steel Guru
Vale Resists China Price Cut Demands
Vale SA, the world’s biggest iron- ore producer, is resisting Chinese demands for record price cuts as the steel industry recovers from its biggest collapse since World War II.
Vale agreed last month to a 28 percent lower price on iron ore supplied to Japanese steel mills under annual contracts, the first reduction in seven years, while China pressed for a discount of as much as 45 percent. Iron ore in the open market has jumped 38 percent since this year’s contract prices were first set, weakening China’s position.
Chief Executive Officer Roger Agnelli said June 25 that he won’t give Chinese customers bigger discounts in what have become the longest-running price talks ever. China’s detention of iron-ore executives from Rio Tinto Group, the world’s second-largest iron-ore exporter, on allegations of espionage has created a split between Australia and China that may also benefit Vale, according to McKinsey & Co.
“The possibility of Chinese steelmakers achieving a bigger discount is very, very unlikely,” Paul Cliff, a mining analyst with Nomura Securities in London, said in a July 22 interview. “Either the Chinese agree to the current benchmark already set or they buy on the spot market.”
Vale, based in Rio de Janeiro, has risen 35 percent in Sao Paulo this year, compared with a 45 percent gain for the Bovespa stock index. Rio advanced 97 percent in London, while BHP Billiton Ltd., the world’s third-biggest iron-ore exporter, rose 23 percent. Rio is based in London and BHP in Melbourne.
China’s steel output, which accounts for about half the world’s total, rose 1.2 percent in the first half, the World Steel Association said July 20. Production will climb about 5 percent this year as the nation’s $586 billion infrastructure stimulus package takes effect, according to Gilberto Cardoso, an analyst with Banif Securities in Rio.
The recent slump in global steel industry production, with many companies operating at half usual output levels, marks the biggest collapse since World War II, according to the World Steel Association.
The Chinese Iron & Steel Association didn’t immediately return calls from Bloomberg News seeking comment.
This year’s contract talks between China and producers such as Rio and BHP began in January and passed the June 30 deadline without an agreement, becoming the longest-running in the 40-year history of setting annual prices. Vale, Rio and BHP control about 70 percent of the seaborne trade in iron ore.
Vale may report second-quarter net income of about $1.12 billion on July 29, according to the median of three estimates in a Bloomberg survey, compared with $5.01 billion a year earlier, after prices fell. Iron ore contributed about 73 percent of the company’s $19 billion of earnings before interest, tax, depreciation and amortization, known as EBITDA, last year.
China depends on imported ore because more than half the nation’s 800 million tons of iron-ore reserves are unviable at current prices, said Sigurd Mareels, a Brussels-based consultant with McKinsey. Iron content in Chinese mines is lower than Vale’s Carajas ore, according to London-based CRU, which provides data and pricing on commodities.
Contract prices are tumbling after Rio and BHP won gains last year of about 85 percent before the economic crisis led to slumping demand. Vale vowed this year to wait for its competitors to reach agreements with steelmakers first after it secured a lower price increase last year of about 65 percent.
Jose Carlos Martins, head of Vale’s ferrous-metals business, said in February Vale wouldn’t be the traditional “price setter” in contract talks this year.
“Politically Vale has done well with its customers by letting the Australians settle first,” Cliff said.
In the first quarter, China took 66.5 percent of Vale’s total iron-ore sales of 52.1 million metric tons, up from 32 percent a year earlier.
“The benchmark is already set,” Agnelli said June 25, referring to the agreements with steelmakers in Asia and Europe for 2009 deliveries of iron-ore fines, the most commonly-traded product. “But we won’t leave the Chinese without ore.”
Vale may benefit from China’s dispute with Rio over allegations that employees of the company allegedly stole state secrets, according to McKinsey’s Mareels. The country, which buys 70 percent of the world’s seaborne iron-ore supplies, detained four Rio executives on July 5. The investigation has strained relations between China and Australian Prime Minister Kevin Rudd.
The China Iron & Steel Association is holding price talks with Vale instead of Rio after the detentions, the Australian Financial Review reported July 16, without saying where it got the information. A Vale spokeswoman said July 24 that the company has no additional comment following the statements already made by Agnelli on iron-ore pricing.
The number of spot iron-ore vessels booked from Brazil to China rose to a record in July while those from Australia dropped, Reuters said July 22, citing freight broker AXSMarine.
Since Agnelli’s June 25 statement, prices for Indian spot ore sold into China have risen to $95 a ton, the highest this year, according to London-based publication Metal Bulletin. Prices are now about 19 percent higher than contract prices.
Vale is “strong enough to resist Chinese demands´´ for concessions, said Robert Meyer, a Dusseldorf-based vice president of Research & Consulting Group, in a July 22 interview.
China’s ore imports, which rose 29 percent in the first half, will exceed 50 million metric tons a month until the end of 2009, boosting global seaborne trade in iron ore to a record 880 million tons this year, according to McKinsey’s Mareels.
“Spot prices will rise further as other markets outside China recover,” Banif’s Cardoso said in a telephone interview.
Vale may reopen its 7 million-ton-a-year Gongo Soco mine in Brazil’s Minas Gerais state in “coming months” amid signs of economic recovery, Agnelli said July 7.
China’s economy has grown at an average rate of more than 9 percent a year over the past decade and should continue at that clip, Barclays Capital analysts including Christopher LaFemina said in a July 17 research report. That will fuel higher demand for steel and iron ore, he said.
“We expect infrastructure development in emerging economies to be a driving factor of above-trend steel demand growth for many years,” Barclays said.
Source: Bloomberg
Vale agreed last month to a 28 percent lower price on iron ore supplied to Japanese steel mills under annual contracts, the first reduction in seven years, while China pressed for a discount of as much as 45 percent. Iron ore in the open market has jumped 38 percent since this year’s contract prices were first set, weakening China’s position.
Chief Executive Officer Roger Agnelli said June 25 that he won’t give Chinese customers bigger discounts in what have become the longest-running price talks ever. China’s detention of iron-ore executives from Rio Tinto Group, the world’s second-largest iron-ore exporter, on allegations of espionage has created a split between Australia and China that may also benefit Vale, according to McKinsey & Co.
“The possibility of Chinese steelmakers achieving a bigger discount is very, very unlikely,” Paul Cliff, a mining analyst with Nomura Securities in London, said in a July 22 interview. “Either the Chinese agree to the current benchmark already set or they buy on the spot market.”
Vale, based in Rio de Janeiro, has risen 35 percent in Sao Paulo this year, compared with a 45 percent gain for the Bovespa stock index. Rio advanced 97 percent in London, while BHP Billiton Ltd., the world’s third-biggest iron-ore exporter, rose 23 percent. Rio is based in London and BHP in Melbourne.
China’s steel output, which accounts for about half the world’s total, rose 1.2 percent in the first half, the World Steel Association said July 20. Production will climb about 5 percent this year as the nation’s $586 billion infrastructure stimulus package takes effect, according to Gilberto Cardoso, an analyst with Banif Securities in Rio.
The recent slump in global steel industry production, with many companies operating at half usual output levels, marks the biggest collapse since World War II, according to the World Steel Association.
The Chinese Iron & Steel Association didn’t immediately return calls from Bloomberg News seeking comment.
This year’s contract talks between China and producers such as Rio and BHP began in January and passed the June 30 deadline without an agreement, becoming the longest-running in the 40-year history of setting annual prices. Vale, Rio and BHP control about 70 percent of the seaborne trade in iron ore.
Vale may report second-quarter net income of about $1.12 billion on July 29, according to the median of three estimates in a Bloomberg survey, compared with $5.01 billion a year earlier, after prices fell. Iron ore contributed about 73 percent of the company’s $19 billion of earnings before interest, tax, depreciation and amortization, known as EBITDA, last year.
China depends on imported ore because more than half the nation’s 800 million tons of iron-ore reserves are unviable at current prices, said Sigurd Mareels, a Brussels-based consultant with McKinsey. Iron content in Chinese mines is lower than Vale’s Carajas ore, according to London-based CRU, which provides data and pricing on commodities.
Contract prices are tumbling after Rio and BHP won gains last year of about 85 percent before the economic crisis led to slumping demand. Vale vowed this year to wait for its competitors to reach agreements with steelmakers first after it secured a lower price increase last year of about 65 percent.
Jose Carlos Martins, head of Vale’s ferrous-metals business, said in February Vale wouldn’t be the traditional “price setter” in contract talks this year.
“Politically Vale has done well with its customers by letting the Australians settle first,” Cliff said.
In the first quarter, China took 66.5 percent of Vale’s total iron-ore sales of 52.1 million metric tons, up from 32 percent a year earlier.
“The benchmark is already set,” Agnelli said June 25, referring to the agreements with steelmakers in Asia and Europe for 2009 deliveries of iron-ore fines, the most commonly-traded product. “But we won’t leave the Chinese without ore.”
Vale may benefit from China’s dispute with Rio over allegations that employees of the company allegedly stole state secrets, according to McKinsey’s Mareels. The country, which buys 70 percent of the world’s seaborne iron-ore supplies, detained four Rio executives on July 5. The investigation has strained relations between China and Australian Prime Minister Kevin Rudd.
The China Iron & Steel Association is holding price talks with Vale instead of Rio after the detentions, the Australian Financial Review reported July 16, without saying where it got the information. A Vale spokeswoman said July 24 that the company has no additional comment following the statements already made by Agnelli on iron-ore pricing.
The number of spot iron-ore vessels booked from Brazil to China rose to a record in July while those from Australia dropped, Reuters said July 22, citing freight broker AXSMarine.
Since Agnelli’s June 25 statement, prices for Indian spot ore sold into China have risen to $95 a ton, the highest this year, according to London-based publication Metal Bulletin. Prices are now about 19 percent higher than contract prices.
Vale is “strong enough to resist Chinese demands´´ for concessions, said Robert Meyer, a Dusseldorf-based vice president of Research & Consulting Group, in a July 22 interview.
China’s ore imports, which rose 29 percent in the first half, will exceed 50 million metric tons a month until the end of 2009, boosting global seaborne trade in iron ore to a record 880 million tons this year, according to McKinsey’s Mareels.
“Spot prices will rise further as other markets outside China recover,” Banif’s Cardoso said in a telephone interview.
Vale may reopen its 7 million-ton-a-year Gongo Soco mine in Brazil’s Minas Gerais state in “coming months” amid signs of economic recovery, Agnelli said July 7.
China’s economy has grown at an average rate of more than 9 percent a year over the past decade and should continue at that clip, Barclays Capital analysts including Christopher LaFemina said in a July 17 research report. That will fuel higher demand for steel and iron ore, he said.
“We expect infrastructure development in emerging economies to be a driving factor of above-trend steel demand growth for many years,” Barclays said.
Source: Bloomberg
Sunday, July 26, 2009
Vale Behind Camec Approach
Camec, which is listed on London's Alternative Investment Market, announced 10 days ago that it had received bid approaches but declined to reveal who was behind them. The interest followed a recent deal struck by the company to supply all the cobalt from its mines in the Democratic Republic of Congo (DRC) to Zhejiang Galico, a Chinese cobalt processor, controlled by a company registered in the British Virgin Islands.
Vale recently opened an office in the DRC and has been eyeing Camec's operations for some time, said the insiders.
In particular there was a suggestion that Vale could team up with Xstrata and make a joint bid for Anglo American. However, Vale poured cold water on the idea by saying it would use the cash to fund its own projects.
Insiders said yesterday that Vale was interested in Camec but gave warning that the deal still may not come off.
Other parties are also said to be interested, including the Chinese. Vedanta Resources may be also be interested in Camec's copper. Vale declined to comment. Camec could not be reached.
At the time of the approaches Camec gave warning that they were preliminary approaches that may or may not lead to an offer being made for the company. Camec's shares have soared from 10p to 15½p as a result of the bid speculation.
Camec has operations in Mozambique, Zimbabwe, South Africa, Mali, Namibia and Kenya. Mr Edmonds, who was born in what was then Northern Rhodesia, played for England from 1975 and 1987.
He has become well-known as a mining entrepreneur in Africa having also established the White Nile Petroleum Company.
Source: Daily Telegraph
Vale recently opened an office in the DRC and has been eyeing Camec's operations for some time, said the insiders.
In particular there was a suggestion that Vale could team up with Xstrata and make a joint bid for Anglo American. However, Vale poured cold water on the idea by saying it would use the cash to fund its own projects.
Insiders said yesterday that Vale was interested in Camec but gave warning that the deal still may not come off.
Other parties are also said to be interested, including the Chinese. Vedanta Resources may be also be interested in Camec's copper. Vale declined to comment. Camec could not be reached.
At the time of the approaches Camec gave warning that they were preliminary approaches that may or may not lead to an offer being made for the company. Camec's shares have soared from 10p to 15½p as a result of the bid speculation.
Camec has operations in Mozambique, Zimbabwe, South Africa, Mali, Namibia and Kenya. Mr Edmonds, who was born in what was then Northern Rhodesia, played for England from 1975 and 1987.
He has become well-known as a mining entrepreneur in Africa having also established the White Nile Petroleum Company.
Source: Daily Telegraph
Global Iron Ore Supply To Exceed 500mn Tonnes By 2012
MetalBiz has cited Mr Zou Jian, the former president of China Metallurgical Mining Enterprise Association, as saying that in the long run the worldwide iron ore supply shows a trend of substantial growth.
In 2012, the increase in supply by iron ore mining enterprises in Brazil and Australia will reach 300 million tonnes and with China's able provide finished products mines at 100 million tonnes and new supply from other countries the global new added supply of iron ore will exceed 500 million tonnes.
Mr Zou Jian said that currently the three big ore miners are increasing investment in iron ore. Brazil's Vale is investing USD 59 billion for production over the next five years. About 30% of investment is to be used to exploit black mineral and the production capacity of iron ore will rise from 296 million tonnes in 2007 to 422 million tonnes in 2012, an increase of about 130 million tonnes. The Brazilian production capacity will reach 475 million tonnes and supply will increase bu about 140 million tonnes. Australian ore production capacity in 2012 will stand at 460 million tonnes, an increase of about 160 million tonnes.
In addition, West Africa, South Asia, Eastern Europe and other countries also have 30 million tonnes to 50 million tonnes of new iron ore capacity; China will also increase its overseas investment in around 50 million tonnes of iron ore supply. The increase of the finished product supply capacity in China will also exceed 100 million tonnes.
Source: Steel Guru
In 2012, the increase in supply by iron ore mining enterprises in Brazil and Australia will reach 300 million tonnes and with China's able provide finished products mines at 100 million tonnes and new supply from other countries the global new added supply of iron ore will exceed 500 million tonnes.
Mr Zou Jian said that currently the three big ore miners are increasing investment in iron ore. Brazil's Vale is investing USD 59 billion for production over the next five years. About 30% of investment is to be used to exploit black mineral and the production capacity of iron ore will rise from 296 million tonnes in 2007 to 422 million tonnes in 2012, an increase of about 130 million tonnes. The Brazilian production capacity will reach 475 million tonnes and supply will increase bu about 140 million tonnes. Australian ore production capacity in 2012 will stand at 460 million tonnes, an increase of about 160 million tonnes.
In addition, West Africa, South Asia, Eastern Europe and other countries also have 30 million tonnes to 50 million tonnes of new iron ore capacity; China will also increase its overseas investment in around 50 million tonnes of iron ore supply. The increase of the finished product supply capacity in China will also exceed 100 million tonnes.
Source: Steel Guru
Saturday, July 25, 2009
Gindalbie Calls For Iron Ore Price Re-think
Iron ore mining hopeful Gindalbie Metals Ltd has joined calls for an rethink of the annual iron ore contract pricing system, which centres on negotiated prices between customers and resources companies.
The system, which has been in place since the 1960s, is under the spotlight as the 2009 negotiations between mining giants and Chinese steel mills drags on longer than ever before.
Iron ore customers in China are holding out for a larger price cut than that already accepted by other Asian steel mills.
The stand-off has been complicated by tensions surrounding the detention of Rio Tinto Ltd's Shanghai based iron ore executive Stern Hu and three other staff in China on suspicion of industrial espionage linked to the iron ore price talks.
Western Australia's premier Colin Barnett, who has been in China this week to push for greater Chinese investment in involvement in the state's resources sector, said he wanted the iron ore contract pricing system dismantled.
Gindalbie chairman George Jones told AAP on Friday from Hong Kong, after attending an Australia China Business Council function in Beijing, the system had obvious flaws.
"I can't comment on what the Premier is saying ... but clearly, with the events of the last couple of years, the negotiations over prices have shown some flaws in the system," Mr Jones said.
"Over the years ahead, I don't think there is one simple solution.
"I'm hopeful that a method can be found that will come up with an equitable pricing mechanism to avoid the angst and antagonism that has taken place in the past two years."
Australian iron ore miners in 2008 negotiated a record 85 per cent increase in contract iron ore prices with Chinese steel mills following unprecedented demand for the bulk commodity in 2007.
"We're going to be trading with China for hundreds of years and have got to find a simple way instead of having these annual battles," Mr Jones said.
BHP Billiton Ltd has for some time been calling for changes to the contract iron ore pricing system, preferring an index-based method, which analyst say could be re-set each quarter.
Meanwhile, Brazil appears to be benefiting from the tensions between Chinese steel mills and Australian iron ore miners, with iron ore exports from Brazil rising in July.
At the same time, shipments from Australia have fallen.
The world's largest iron ore miner, Brazil's Vale, has this week concluded 2009 iron ore contracts with European steelmakers, after agreeing a 28.2 per cent reduction in the prices.
Source: Sydney Morning Herald
The system, which has been in place since the 1960s, is under the spotlight as the 2009 negotiations between mining giants and Chinese steel mills drags on longer than ever before.
Iron ore customers in China are holding out for a larger price cut than that already accepted by other Asian steel mills.
The stand-off has been complicated by tensions surrounding the detention of Rio Tinto Ltd's Shanghai based iron ore executive Stern Hu and three other staff in China on suspicion of industrial espionage linked to the iron ore price talks.
Western Australia's premier Colin Barnett, who has been in China this week to push for greater Chinese investment in involvement in the state's resources sector, said he wanted the iron ore contract pricing system dismantled.
Gindalbie chairman George Jones told AAP on Friday from Hong Kong, after attending an Australia China Business Council function in Beijing, the system had obvious flaws.
"I can't comment on what the Premier is saying ... but clearly, with the events of the last couple of years, the negotiations over prices have shown some flaws in the system," Mr Jones said.
"Over the years ahead, I don't think there is one simple solution.
"I'm hopeful that a method can be found that will come up with an equitable pricing mechanism to avoid the angst and antagonism that has taken place in the past two years."
Australian iron ore miners in 2008 negotiated a record 85 per cent increase in contract iron ore prices with Chinese steel mills following unprecedented demand for the bulk commodity in 2007.
"We're going to be trading with China for hundreds of years and have got to find a simple way instead of having these annual battles," Mr Jones said.
BHP Billiton Ltd has for some time been calling for changes to the contract iron ore pricing system, preferring an index-based method, which analyst say could be re-set each quarter.
Meanwhile, Brazil appears to be benefiting from the tensions between Chinese steel mills and Australian iron ore miners, with iron ore exports from Brazil rising in July.
At the same time, shipments from Australia have fallen.
The world's largest iron ore miner, Brazil's Vale, has this week concluded 2009 iron ore contracts with European steelmakers, after agreeing a 28.2 per cent reduction in the prices.
Source: Sydney Morning Herald
Vedanta To Buy Indian Government Stake In Hindustan Zinc
Vedanta Resources Plc, a UK-based metals and mining company, is planning to acquire the Government of India's 29.53% stake in India-based zinc mining and producing company Hindustan Zinc Limited.
Based on the closing price of Hindustan Zinc common stock of INR667.80 per share on July 21, 2009, the 29.53% stake is estimated to be worth INR 83,323.856 million ($1,722.59 million).
Vedanta Resources currently holds a 64.92% stake in Hindustan Zinc.
Based on the closing price of Hindustan Zinc common stock of INR667.80 per share on July 21, 2009, the 29.53% stake is estimated to be worth INR 83,323.856 million ($1,722.59 million).
Vedanta Resources currently holds a 64.92% stake in Hindustan Zinc.
NZ Silicon Producer Facing Dissolution
A prominent company exploring for silicon in Southland is facing dissolution if it does not get an injection of capital in the next year.
Silicon Metal Industries is one of four firms believed to hold exploration permits to search for silica at Pebbly Hills.
In the firm's annual report, issued in March, chairman Michael Hawarden said SMI concluded the year with a $62,000 deficit and an injection of funds was vital to keep the company alive. Overtures had been made to local and overseas financial institutions to raise $500,000 initially, he said.
However, shareholders were also being asked to increase their holdings in the firm, being offered up to $5000 in shares at 2.5c each.
"Our hope is shareholders will avail themselves of this discounted offer, which will enable the company, firstly, to survive, and to pursue capital raising from other sources, leading ultimately to capturing the very considerable value which it is felt is inherent in this project." The year's activities would depend on the successes or otherwise of interim capital raising, he said.
It was a difficult time to be seeking capital, given the disarray in world financial markets, but he believed the future of the project was positive.
"The silicon market appears to be relatively buoyant, and a weaker New Zealand dollar enhances the viability significantly."
Previous geological investigations had also indicated the presence of economically significant gold grades in the area, he said. "This alluvial gold could be recovered as a byproduct of the gravel washing and screening stage. Further testing to confirm actual grades is warranted."
SMI has about 70 New Zealand shareholders, including the South Island's richest man Allan Hubbard, and some in South Africa.
Three of its South African directors were recently investigated for fraud by South Africa's Government, but no prosecution has been taken.
Source: stuff.co.nz
Silicon Metal Industries is one of four firms believed to hold exploration permits to search for silica at Pebbly Hills.
In the firm's annual report, issued in March, chairman Michael Hawarden said SMI concluded the year with a $62,000 deficit and an injection of funds was vital to keep the company alive. Overtures had been made to local and overseas financial institutions to raise $500,000 initially, he said.
However, shareholders were also being asked to increase their holdings in the firm, being offered up to $5000 in shares at 2.5c each.
"Our hope is shareholders will avail themselves of this discounted offer, which will enable the company, firstly, to survive, and to pursue capital raising from other sources, leading ultimately to capturing the very considerable value which it is felt is inherent in this project." The year's activities would depend on the successes or otherwise of interim capital raising, he said.
It was a difficult time to be seeking capital, given the disarray in world financial markets, but he believed the future of the project was positive.
"The silicon market appears to be relatively buoyant, and a weaker New Zealand dollar enhances the viability significantly."
Previous geological investigations had also indicated the presence of economically significant gold grades in the area, he said. "This alluvial gold could be recovered as a byproduct of the gravel washing and screening stage. Further testing to confirm actual grades is warranted."
SMI has about 70 New Zealand shareholders, including the South Island's richest man Allan Hubbard, and some in South Africa.
Three of its South African directors were recently investigated for fraud by South Africa's Government, but no prosecution has been taken.
Source: stuff.co.nz
Chinese Steel Company Looks At West Australia Plants
Chinese steel processor Ansteel Mining Company will conduct a feasibility study of steel plants and mills in Western Australia.
Ansteel is interested in iron ore processing in W-A particularly at Mt Karara in the Mid West.
The company is also keen to be part of the Oakajee development near Geraldton.
Today in China the State Premier Colin Barnett said the company would work with the Department of State Development on the feasibility study.
The Australian Steel Institute has written to the Premier about the Oakajee project.
It's concerned that the local industry will be overlooked in favour of Chinese firms.
The Australian Workers Union says local steel companies are ready and able to support the project.
Source: ABC
Ansteel is interested in iron ore processing in W-A particularly at Mt Karara in the Mid West.
The company is also keen to be part of the Oakajee development near Geraldton.
Today in China the State Premier Colin Barnett said the company would work with the Department of State Development on the feasibility study.
The Australian Steel Institute has written to the Premier about the Oakajee project.
It's concerned that the local industry will be overlooked in favour of Chinese firms.
The Australian Workers Union says local steel companies are ready and able to support the project.
Source: ABC
Friday, July 24, 2009
Australia's Tin Output Being Bought By Chinese
Tin is one of the least fathomable base metals market at present, due partly to recent Chinese stockpiling of the metal.
The metal’s price, say some analysts, is way ahead of where it should be based purely on the demand factor.
But China is laying in heavy stocks of tin against future demand.
Now a good chunk of Australia’s present and future tin output is being tied up by Chinese buyers.
The country’s only tin producer Metals X is selling 60 per cent of its Tasmanian operations – the Renison Bell underground mine and the Mt Bischoff open pit mine along with the tin concentrator – the Yunnan Tin Group, the world’s largest tin producer.
MLX will be getting $60 million in cash for the transaction, a sum of money sufficient to the turn the head of any medium sized company. The decision by the Australian miner should also be seen against the background of the other focus at Metals X - tungsten.
The company also owns 48 per cent of Aragon Resources which is forming an alliance with up and coming tungsten play Vital Metals. And, back in February, Metals X was talking to Icon Resources about involvement in the latter’s Mt Carbine tungsten deposit. That $60 million will go a long way building other assets for MLX.
In another development this week, Consolidated Tin Mines said it had begun talks with potential Chinese off-take partners for its Mt Garnet tin project near Cairns.
Source: The Australian
The metal’s price, say some analysts, is way ahead of where it should be based purely on the demand factor.
But China is laying in heavy stocks of tin against future demand.
Now a good chunk of Australia’s present and future tin output is being tied up by Chinese buyers.
The country’s only tin producer Metals X is selling 60 per cent of its Tasmanian operations – the Renison Bell underground mine and the Mt Bischoff open pit mine along with the tin concentrator – the Yunnan Tin Group, the world’s largest tin producer.
MLX will be getting $60 million in cash for the transaction, a sum of money sufficient to the turn the head of any medium sized company. The decision by the Australian miner should also be seen against the background of the other focus at Metals X - tungsten.
The company also owns 48 per cent of Aragon Resources which is forming an alliance with up and coming tungsten play Vital Metals. And, back in February, Metals X was talking to Icon Resources about involvement in the latter’s Mt Carbine tungsten deposit. That $60 million will go a long way building other assets for MLX.
In another development this week, Consolidated Tin Mines said it had begun talks with potential Chinese off-take partners for its Mt Garnet tin project near Cairns.
Source: The Australian
Xstrata To Restart Queensland Coal Mine
A central Queensland coal mine which closed last year will reopen.
Xstrata closed off the Oaky number one mine north-east of Emerald late last year, blaming a slump in demand for coking coal in China.
But the company says increased sales to China will allow operations at the mine to restart next month.
Construction, Forestry, Mining and Energy Union (CFMEU) spokesman Jim Vallerie has questioned why the company closed the mine in the first place.
"We believe the original closure was done in a very unjust manner towards all the employees who were working there," he said.
"We would see that what they're doing now by re-employing some six months, if that, later, probably clouds the real reason behind why they were done.
"It's always good to have people put back on but the people who had the loss will still feel that loss."
Premier Anna Bligh says the reopening of the mine shows confidence has returned to the industry.
She says she hopes other companies follow Xstrata's lead.
"It's good news for those workers and their families, but it's I think a sign of confidence," she said.
"I hope that confidence inspires other parts of industry and other parts of the market to come back in and to invest in Queensland."
Source: ABC
Xstrata closed off the Oaky number one mine north-east of Emerald late last year, blaming a slump in demand for coking coal in China.
But the company says increased sales to China will allow operations at the mine to restart next month.
Construction, Forestry, Mining and Energy Union (CFMEU) spokesman Jim Vallerie has questioned why the company closed the mine in the first place.
"We believe the original closure was done in a very unjust manner towards all the employees who were working there," he said.
"We would see that what they're doing now by re-employing some six months, if that, later, probably clouds the real reason behind why they were done.
"It's always good to have people put back on but the people who had the loss will still feel that loss."
Premier Anna Bligh says the reopening of the mine shows confidence has returned to the industry.
She says she hopes other companies follow Xstrata's lead.
"It's good news for those workers and their families, but it's I think a sign of confidence," she said.
"I hope that confidence inspires other parts of industry and other parts of the market to come back in and to invest in Queensland."
Source: ABC
Brazil Iron Ore Sales To China Soar
Spot iron ore vessel bookings from Brazil to China jumped to a record in July as Australia suspended spot sales following detentions of Rio Tinto's top sales officials in China and as falling freight costs made longer haul trade attractive.
Chinese authorities this month detained four employees of Rio, including its top iron ore salesman in China, Australian Stern Hu, over allegations of stealing state secrets during annual iron ore negotiations.
Vessel bookings from Australia's main iron ore ports to China have collapsed to 12 so far this month from an average of 40 in the second quarter and a record 55 in March, according to fixtures data from data specialist AXSMarine.
Shipments from Brazil, the second-largest iron ore supplier to China after Australia, have surged to a record 31, suggesting China's insatiable demand for overseas ore remained intact to feed its record steel production rates.
Strong demand from China, which consumes more than half the globally traded iron ore, drove spot prices to eight-month highs, with Indian ore leading the rally, boosted by shrinking Australian supplies.
Iron ore prices of benchmark 62 percent iron content delivered in China rose to $84.4 a tonne on Tuesday, adding nearly $3 in a week, according to the Steel Index, while another compiler, Metal Bulletin, said prices of 62 percent iron content delivered in China also rose to $85.80 a tonne on Tuesday.
Indian ores with 63/63.5 percent iron content for August delivery are quoted at $91-$93 this week, up from $87-$89 last week, according to industry consultancy Mysteel.
Analysts expect spot prices would continue to stay above 2009 contract prices but upside would be also limited due to prospects of a potential reopening of China's high-cost mines and as Chinese overbuying and heavy port stocks could lead to a lull in shipments going forward.
China's iron ore imports soared 29 percent this year to a record 297.2 million tonnes and imports from Australia, the biggest supplier to China, jumped 43 percent to 122 million tonnes.
BHP Billiton said on Wednesday restocking of commodities in China may have ended, coinciding with fresh inventory building in other markets.
The Baltic Exchange's Capesize freight index .BACI, which tracks costs for vessels hauling 150,000 tonne cargoes, tumbled nearly 4 percent on Tuesday, taking one-month fall to around 30 percent and making longer-haul vessels more attractive.
It comes as port congestion problems in China eased and concerns grow over the rising number of ships set to hit the market this year, which is likely to weigh on freight rates given weak global appetite for commodities and an economic slowdown.
Source: Reuters
Chinese authorities this month detained four employees of Rio, including its top iron ore salesman in China, Australian Stern Hu, over allegations of stealing state secrets during annual iron ore negotiations.
Vessel bookings from Australia's main iron ore ports to China have collapsed to 12 so far this month from an average of 40 in the second quarter and a record 55 in March, according to fixtures data from data specialist AXSMarine.
Shipments from Brazil, the second-largest iron ore supplier to China after Australia, have surged to a record 31, suggesting China's insatiable demand for overseas ore remained intact to feed its record steel production rates.
Strong demand from China, which consumes more than half the globally traded iron ore, drove spot prices to eight-month highs, with Indian ore leading the rally, boosted by shrinking Australian supplies.
Iron ore prices of benchmark 62 percent iron content delivered in China rose to $84.4 a tonne on Tuesday, adding nearly $3 in a week, according to the Steel Index, while another compiler, Metal Bulletin, said prices of 62 percent iron content delivered in China also rose to $85.80 a tonne on Tuesday.
Indian ores with 63/63.5 percent iron content for August delivery are quoted at $91-$93 this week, up from $87-$89 last week, according to industry consultancy Mysteel.
Analysts expect spot prices would continue to stay above 2009 contract prices but upside would be also limited due to prospects of a potential reopening of China's high-cost mines and as Chinese overbuying and heavy port stocks could lead to a lull in shipments going forward.
China's iron ore imports soared 29 percent this year to a record 297.2 million tonnes and imports from Australia, the biggest supplier to China, jumped 43 percent to 122 million tonnes.
BHP Billiton said on Wednesday restocking of commodities in China may have ended, coinciding with fresh inventory building in other markets.
The Baltic Exchange's Capesize freight index .BACI, which tracks costs for vessels hauling 150,000 tonne cargoes, tumbled nearly 4 percent on Tuesday, taking one-month fall to around 30 percent and making longer-haul vessels more attractive.
It comes as port congestion problems in China eased and concerns grow over the rising number of ships set to hit the market this year, which is likely to weigh on freight rates given weak global appetite for commodities and an economic slowdown.
Source: Reuters
Thursday, July 23, 2009
Rio Tinto Accused Over Guinea Iron Ore Mine
Rio Tinto Plc, the world's No. two mining company, was accused by the Guinea government of defying its authority and threatening civil peace in a dispute over an iron-ore mine, the London-based Times reported.
The accusation was contained in a June 26 letter by Mahmoud Thiam, Guinea's mines and energy minister, to Rio Chairman Jan du Plessis and Tom Albanese, the chief executive officer, and puts in question the future of the Simandou mine, one of the Anglo-Australian company's most important development projects, the newspaper said.
Guinea revoked half of Rio's licenses for Simandou in December; the company challenged the decision and has refused to move its equipment from the disputed area, the Times said.
In its response to the minister's letter, Rio said it has indicated its wish to conduct discussions in good faith and is confident of its legal standing, the newspaper added.
Source: Bloomberg
The accusation was contained in a June 26 letter by Mahmoud Thiam, Guinea's mines and energy minister, to Rio Chairman Jan du Plessis and Tom Albanese, the chief executive officer, and puts in question the future of the Simandou mine, one of the Anglo-Australian company's most important development projects, the newspaper said.
Guinea revoked half of Rio's licenses for Simandou in December; the company challenged the decision and has refused to move its equipment from the disputed area, the Times said.
In its response to the minister's letter, Rio said it has indicated its wish to conduct discussions in good faith and is confident of its legal standing, the newspaper added.
Source: Bloomberg
China Sees Iron Ore Price Settlement "In About Ten Days"
IRON ore negotiations between Chinese steel mills and suppliers will conclude in around 10 days, a top Chinese steelmaker says.
Price talks: A ship is being loaded with iron ore from a Rio Tinto mine in West Australia's Pilbara region. Picture: Reuters
The vice-chairman of the China Iron and Steel Association, which has been spearheading the talks for the Chinese side, said China won't accept a 33 per cent price cut in iron ore prices.
"You will see an outcome (from the negotiations) in around 10 days," Li Xiaowei, who is also the chairman of Hunan Valin Iron & Steel Group, told reporters in Beijing.
"It's impossible for China to accept the 33 per cent price (cut)."
"Supply and demand rely on each other like teeth and lips. Those who only chase monopoly and windfalls will eventually lose more.”
Mr Li is also chairman of Hunan Valin Iron & Steel Group, which owns just over 17 per cent in Fortescue Metals Group, making it the Australian miner's second-largest shareholder.
Mr Li said China's annual iron ore demand of 450 million tonnes means it should be deciding what price was right for the raw material.
Companies should seek a "China price" and a "China mechanism," Mr Li said, indicating China wanted to set its own mechanism for global iron ore prices.
The 2009-10 contract year iron ore negotiations between Chinese mills and the world's top ore suppliers Rio Tinto, BHP Billiton and Vale have been particularly tortuous this year as both sides have refused to back down on the extent of price cuts.
Already, some Chinese steel mills have agreed to provisional prices for iron ore until a final price is set. As several key buyers adopted a 33 per cent discounted price as the provisional price, it was seen to indicate Chinese steel mills expect it will be the final price to emerge from current talks between government-linked negotiators and major mining companies.
On Hunan Valin's outlook, Mr Li said the company didn't have another overseas merger and acquisition target after it completed its equity acquisition in Fortescue earlier this year.
He added Valin would cut its financial cost by at least 200m yuan ($36m) this year and its profit might reach its highest level for this year yet in August, but didn't provide any figures.
His comments came as Chinalco president Xiong Weiping said he was closely monitoring the development of the Chinese government's investigation into the alleged theft of state secrets by four Rio Tinto employees.
Chinalco is the single biggest shareholder of Rio.
Mr Xiong also said his company was interested in mining assets in Western Australia, especially in the non-ferrous sector.
Mr Xiong said he was also following developments of talks between Anglo American and Xstrata.
"We are closely monitoring this deal, and as a metal and mining group, Chinalco is closely watching the restructuring of the global mining industry," he told reporters.
Source: The Australian
Price talks: A ship is being loaded with iron ore from a Rio Tinto mine in West Australia's Pilbara region. Picture: Reuters
The vice-chairman of the China Iron and Steel Association, which has been spearheading the talks for the Chinese side, said China won't accept a 33 per cent price cut in iron ore prices.
"You will see an outcome (from the negotiations) in around 10 days," Li Xiaowei, who is also the chairman of Hunan Valin Iron & Steel Group, told reporters in Beijing.
"It's impossible for China to accept the 33 per cent price (cut)."
"Supply and demand rely on each other like teeth and lips. Those who only chase monopoly and windfalls will eventually lose more.”
Mr Li is also chairman of Hunan Valin Iron & Steel Group, which owns just over 17 per cent in Fortescue Metals Group, making it the Australian miner's second-largest shareholder.
Mr Li said China's annual iron ore demand of 450 million tonnes means it should be deciding what price was right for the raw material.
Companies should seek a "China price" and a "China mechanism," Mr Li said, indicating China wanted to set its own mechanism for global iron ore prices.
The 2009-10 contract year iron ore negotiations between Chinese mills and the world's top ore suppliers Rio Tinto, BHP Billiton and Vale have been particularly tortuous this year as both sides have refused to back down on the extent of price cuts.
Already, some Chinese steel mills have agreed to provisional prices for iron ore until a final price is set. As several key buyers adopted a 33 per cent discounted price as the provisional price, it was seen to indicate Chinese steel mills expect it will be the final price to emerge from current talks between government-linked negotiators and major mining companies.
On Hunan Valin's outlook, Mr Li said the company didn't have another overseas merger and acquisition target after it completed its equity acquisition in Fortescue earlier this year.
He added Valin would cut its financial cost by at least 200m yuan ($36m) this year and its profit might reach its highest level for this year yet in August, but didn't provide any figures.
His comments came as Chinalco president Xiong Weiping said he was closely monitoring the development of the Chinese government's investigation into the alleged theft of state secrets by four Rio Tinto employees.
Chinalco is the single biggest shareholder of Rio.
Mr Xiong also said his company was interested in mining assets in Western Australia, especially in the non-ferrous sector.
Mr Xiong said he was also following developments of talks between Anglo American and Xstrata.
"We are closely monitoring this deal, and as a metal and mining group, Chinalco is closely watching the restructuring of the global mining industry," he told reporters.
Source: The Australian
China Coal Imports Surge On Increased Steel Production
Statistics from China's Customs indicate that in H1 of 2009, China imported 12.89 million tonnes of coking coal, increasing 3.4 times YoY. In addition the average CIF price of imported coking coal remained at USD 130 per tonne, rising by 14%.
In June, China's imports of coking coal rose to unprecedented heights, at 4.63 million tonnes, surging by seven times. The changes taking place in coking coal imports are also surprising. In H1 Zhang Jiagang port witnessed its coking coal imports increasing by 1062% YoY to 674,000 tonnes and at Rizhao port over 2 million tonnes of coking coal was imported, rising by over 10 times YoY.
An insider from Jiangsu Shagang Group on July 21st said "It's been three years since we last halted the import of coking coal, but now we have been importing it again since March. Our agreement with suppliers in Australia is expected to last till this September and then we will set a new import volume according to the price".
In terms of import volumes in H1 of the year, Jiangsu Shagang Group ranks third among all companies in China. Since March, Sha gang Group has bought from abroad more than 800,000 tonnes of coking coal so far and most of the coal its using now are from Australia and Canada.
In H1 imported coking coal had remained at CNY 100 per tonne to CNY 250 per tonne cheaper than domestic resources. Sha Gang insiders introduced that the CIF price of coking coal of similar quality from Australia and Canada is CNY 200 per tonne cheaper than coal in Shanxi province, and sometimes the gap rose CNY 250 per tonne.
As China's imports surge and capacities recover in overseas countries, the price of imported coking coal seems to have started to edge up. One source said "Taking the transportation fare into account, now the gap remains at CNY 100 per tonne to CNY 150 per tonne making it still quite appealing to import from abroad."
Apart from Jiangsu Sha gang Group, Liuzhou Iron and Steel Group, Angang Group, Baosteel as well as Beitai Iron and Steel Group remain to be the major groups that imported coking coal in the H1 of the year. The price gap has attracted steel makers to sign contracts for coal supply with foreign suppliers with the validity of the contracts mainly lasting for three to six months. Thus the import volume of coking is expected to remain high even in September and October of the year.
The production of coking coal is gradually increasing, and now only 30% to 40% capacities are laid up, compared with 70% at the beginning of the year.
Source: Steel Guru
In June, China's imports of coking coal rose to unprecedented heights, at 4.63 million tonnes, surging by seven times. The changes taking place in coking coal imports are also surprising. In H1 Zhang Jiagang port witnessed its coking coal imports increasing by 1062% YoY to 674,000 tonnes and at Rizhao port over 2 million tonnes of coking coal was imported, rising by over 10 times YoY.
An insider from Jiangsu Shagang Group on July 21st said "It's been three years since we last halted the import of coking coal, but now we have been importing it again since March. Our agreement with suppliers in Australia is expected to last till this September and then we will set a new import volume according to the price".
In terms of import volumes in H1 of the year, Jiangsu Shagang Group ranks third among all companies in China. Since March, Sha gang Group has bought from abroad more than 800,000 tonnes of coking coal so far and most of the coal its using now are from Australia and Canada.
In H1 imported coking coal had remained at CNY 100 per tonne to CNY 250 per tonne cheaper than domestic resources. Sha Gang insiders introduced that the CIF price of coking coal of similar quality from Australia and Canada is CNY 200 per tonne cheaper than coal in Shanxi province, and sometimes the gap rose CNY 250 per tonne.
As China's imports surge and capacities recover in overseas countries, the price of imported coking coal seems to have started to edge up. One source said "Taking the transportation fare into account, now the gap remains at CNY 100 per tonne to CNY 150 per tonne making it still quite appealing to import from abroad."
Apart from Jiangsu Sha gang Group, Liuzhou Iron and Steel Group, Angang Group, Baosteel as well as Beitai Iron and Steel Group remain to be the major groups that imported coking coal in the H1 of the year. The price gap has attracted steel makers to sign contracts for coal supply with foreign suppliers with the validity of the contracts mainly lasting for three to six months. Thus the import volume of coking is expected to remain high even in September and October of the year.
The production of coking coal is gradually increasing, and now only 30% to 40% capacities are laid up, compared with 70% at the beginning of the year.
Source: Steel Guru
Calcium Carbide Cartel Fined 61 Million Euros
European Union antitrust regulators have imposed a combined fine of 61 million euros ($87 million) on nine companies for forming a calcium carbide cartel in breach of EU rules.
The cartel fixed prices and share markets for calcium carbide powder and granules and magnesium granulates in a large part of the European Economic Area between 2004 and 2007, the European Commission said in a statement on Wednesday. The companies are Almamet, Donau Chemie, Ecka Granulate, Holding Slovenske elektrarne, which formerly owned TDR Metalurgija), Novacke chemicke zavody and its former parent 1.garantovana, German steel industry supplier SKW Stahl-Metallurgie and its former parent companies Evonik Degussa and Arques industries.
Calcium carbine powder and magnesium granulates are used in the steel industry for desulphurisation or deoxidation purposes. Calcium carbine granulates are used for the production of acetylene, a welding gas.
Paint company Akzo Nobel was not fined because it blew the whistle on the cartel. Evonik Degussa saw its fine rise by 50 percent because of similar infringements in the past.
SKW Stahl-Mettalurgie was given a 13.3 million euro fine. It shares were down 5.6 percent to 12.84 euros in mid-day trading. Akzo was 0.47 percent off at 33.73 euros.
Source: Reuters
The cartel fixed prices and share markets for calcium carbide powder and granules and magnesium granulates in a large part of the European Economic Area between 2004 and 2007, the European Commission said in a statement on Wednesday. The companies are Almamet, Donau Chemie, Ecka Granulate, Holding Slovenske elektrarne, which formerly owned TDR Metalurgija), Novacke chemicke zavody and its former parent 1.garantovana, German steel industry supplier SKW Stahl-Metallurgie and its former parent companies Evonik Degussa and Arques industries.
Calcium carbine powder and magnesium granulates are used in the steel industry for desulphurisation or deoxidation purposes. Calcium carbine granulates are used for the production of acetylene, a welding gas.
Paint company Akzo Nobel was not fined because it blew the whistle on the cartel. Evonik Degussa saw its fine rise by 50 percent because of similar infringements in the past.
SKW Stahl-Mettalurgie was given a 13.3 million euro fine. It shares were down 5.6 percent to 12.84 euros in mid-day trading. Akzo was 0.47 percent off at 33.73 euros.
Source: Reuters
Timminco To Cut Silicon Production
Timminco Ltd will temporarily cut solar-grade silicon production and up to 60 staff as demand remains weak, but the company said production would resume once demand recovers.
Toronto-based Timminco said on Wednesday that scaling back production to one purification line at its Becancour plant in Quebec will allow it to preserve working capital and save money. It did not specify any amounts.
The company operated three of its seven purification lines in the second quarter, producing 243 metric tons of the silicon. It shipped 34 metric tons of it in the quarter, at an average price of C$39 per kilogram, due to "weak market conditions" in the solar energy sector.
In the first quarter, Timminco shipped 131 metric tons of solar-grade silicon at an average price of C$58 per kilogram.
Timminco has developed its own method of purifying silicon metal into solar-grade silicon, which is used in the manufacturing of solar cells. The company also produces silicon metal, used in a range of industrial applications in the aluminum, chemical, pharmaceutical, electronics and automotive sectors.
Source: Reuters
Toronto-based Timminco said on Wednesday that scaling back production to one purification line at its Becancour plant in Quebec will allow it to preserve working capital and save money. It did not specify any amounts.
The company operated three of its seven purification lines in the second quarter, producing 243 metric tons of the silicon. It shipped 34 metric tons of it in the quarter, at an average price of C$39 per kilogram, due to "weak market conditions" in the solar energy sector.
In the first quarter, Timminco shipped 131 metric tons of solar-grade silicon at an average price of C$58 per kilogram.
Timminco has developed its own method of purifying silicon metal into solar-grade silicon, which is used in the manufacturing of solar cells. The company also produces silicon metal, used in a range of industrial applications in the aluminum, chemical, pharmaceutical, electronics and automotive sectors.
Source: Reuters
Wednesday, July 22, 2009
Twin Ports Iron Ore Shipments Worst Since Thirties
By at least one economic measure, the Great Recession is approaching the Great Depression in Duluth.
Shipping organizations reported Tuesday that iron ore shipments from the Twin Ports have declined by nearly two-thirds this season, hitting levels not seen since the 1930s.
Just over 1 million tons of ore have been shipped out of Duluth and Superior, Wis., so far this year, a drop of nearly one-half from a year ago, according to the Lake Carriers Association.
That's well below levels reached in the wake of the crash of 1929, according to the Duluth Seaway Port Authority.
The picture is even grimmer up the north shore of Lake Superior, where shipments out of Two Harbors and Silver Bay have declined even more precipitously.
The association reported another indication of the cratering economy: Throughout the Great Lakes, shipments for all commodities, other than coal, have slumped by more than one-third since last year. The slump in iron ore shipments led all other categories, according to the association.
The recession-battered market for iron and steel has been acutely painful on the Iron Range, where Minnesota's six taconite plants are or have been idle in recent months in short- or long-term closures.
The most recent blow to the beleaguered taconite industry came early this month when Cliffs Natural Resources Inc. announced it would keep Hibbing Taconite shut down until next April, keeping 700 employees out of work.
Source: Minneapolis Star Tribune
Shipping organizations reported Tuesday that iron ore shipments from the Twin Ports have declined by nearly two-thirds this season, hitting levels not seen since the 1930s.
Just over 1 million tons of ore have been shipped out of Duluth and Superior, Wis., so far this year, a drop of nearly one-half from a year ago, according to the Lake Carriers Association.
That's well below levels reached in the wake of the crash of 1929, according to the Duluth Seaway Port Authority.
The picture is even grimmer up the north shore of Lake Superior, where shipments out of Two Harbors and Silver Bay have declined even more precipitously.
The association reported another indication of the cratering economy: Throughout the Great Lakes, shipments for all commodities, other than coal, have slumped by more than one-third since last year. The slump in iron ore shipments led all other categories, according to the association.
The recession-battered market for iron and steel has been acutely painful on the Iron Range, where Minnesota's six taconite plants are or have been idle in recent months in short- or long-term closures.
The most recent blow to the beleaguered taconite industry came early this month when Cliffs Natural Resources Inc. announced it would keep Hibbing Taconite shut down until next April, keeping 700 employees out of work.
Source: Minneapolis Star Tribune
Newcrest Tungsten Discovery Is "World Class Find"
NEWCREST has put the wind up China's tungsten industry by revealing that its O'Callaghans tungsten discovery near the Telfer gold/copper mine in Western Australia is shaping up as a world-class find.
Managing director of Melbourne-based Newcrest Ian Smith said an initial resource estimate for O'Callaghans would be about 60 million tonnes. He did not give an indicative grade but said it was a deposit of "world significance".
China controls the world tungsten market through production dominance from mines in Jiangxi, Hunan and Yunnan. It may bid for O'Callaghans to maintain its hold.
Newcrest is open to exploiting the situation. Mr Smith said Newcrest had a team in China talking to "people who are very interested in O'Callaghans because China's companies control the tungsten market at the moment".
"But just as importantly, some of the companies to have shown intense interest have been from Japan and northern Europe," Mr Smith said.
While relishing the interest in the strategic discovery, Newcrest has yet to decide whether to hold on to O'Callaghans. "What we're confident of is that we're sitting on a pretty important and strategic resource. There is no shortage of people interested in what is … a world-class deposit outside of the control of the country that now dominates that whole industry," Mr Smith said.
He was speaking at the release of Newcrest's June-quarter/June-year production report. Gold production rose 9 per cent to 397,826 ounces in the June quarter compared with the preceding quarter. That took annual output to 1.63 million ounces for the June year, in line with previous company guidance that output would be 1.62 million ounces. Annual copper production was higher than guidance at 89,900 tonnes.
Newcrest shares closed down 57¢ at $30.39, in line with general share price weakness in the sector due to easing inflation concerns that have sent gold prices lower.
Source: The Age
Managing director of Melbourne-based Newcrest Ian Smith said an initial resource estimate for O'Callaghans would be about 60 million tonnes. He did not give an indicative grade but said it was a deposit of "world significance".
China controls the world tungsten market through production dominance from mines in Jiangxi, Hunan and Yunnan. It may bid for O'Callaghans to maintain its hold.
Newcrest is open to exploiting the situation. Mr Smith said Newcrest had a team in China talking to "people who are very interested in O'Callaghans because China's companies control the tungsten market at the moment".
"But just as importantly, some of the companies to have shown intense interest have been from Japan and northern Europe," Mr Smith said.
While relishing the interest in the strategic discovery, Newcrest has yet to decide whether to hold on to O'Callaghans. "What we're confident of is that we're sitting on a pretty important and strategic resource. There is no shortage of people interested in what is … a world-class deposit outside of the control of the country that now dominates that whole industry," Mr Smith said.
He was speaking at the release of Newcrest's June-quarter/June-year production report. Gold production rose 9 per cent to 397,826 ounces in the June quarter compared with the preceding quarter. That took annual output to 1.63 million ounces for the June year, in line with previous company guidance that output would be 1.62 million ounces. Annual copper production was higher than guidance at 89,900 tonnes.
Newcrest shares closed down 57¢ at $30.39, in line with general share price weakness in the sector due to easing inflation concerns that have sent gold prices lower.
Source: The Age
Mining Giants Submit Bids For PT Berau Coal
China's Huaneng Power and Indonesia's PT Indika Energy are among the companies that have submitted bids for a majority stake in Indonesian coal miner PT Berau Coal, according to sources, in a deal that could value Berau at more than $1 billion.
Thailand's top coal miner Banpu may also bid for the stake while mining giants Xstrata and Peabody Energy have previously expressed interest in the stake.
"We are just like the others, which have been approached by financial advisers and we are in the process of considering," Banpu chief executive Chanin Vongkusolkit told Reuters.
Sources said Berau -- Indonesia's fifth-largest coal miner -- has generated strong interest as it is rare for controlling stakes in Indonesian energy firms to be put on the market. The stake offers a steady supply of quality Indonesian thermal coal.
Berau, which has a 1,200 square km (460 sq mile) concession area in East Kalimantan province, produced 13.2 million tonnes of coal in 2008 and aims for production of 15 million tonnes this year.
Armadian Tritunggal -- an investment firm controlled by Indonesian businessman Rizal Risjad -- is selling its 51 percent controlling stake in Berau.
The sale is being run by Deutsche Bank, Bank of America's Merrill Lynch, and former Merrill banker Sheldon Trainor's PacBridge Capital Partners.
Armadian Tritunggal may elect to keep a portion of its controlling stake, a source had previously told Reuters.
"The asset will probably go to a strategic buyer either as a complete buy-out or a large minority stake," said a source familiar with the auction.
It was unclear whether Xstrata and Peabody Energy had submitted bids, which sources said were due a few weeks ago.
Berau is a joint venture between Tritunggal, Dutch firm dan Rognar Holding B.V. and Japanese firm Sojitz Corp, with Rognar and Sojitz owning 39 percent and 10 percent stakes.
The sale by Berau's biggest stakeholder could also trigger the sale of stakes by its minority shareholders. The total value of the company is expected to be worth more than $1 billion.
Berau is also being assessed for a possible initial public offering and the due diligence should be completed by the end of June, president director Bob Kamandanu told Reuters in May.
IPO plans will be included as part of any deal to sell the majority stake, sources said.
Further complicating the deal is an outstanding $300 million high-yield bond arranged by Merrill Lynch, sources have said.
Indika tapped Citigroup to advise on its bid, two of the sources said. Huaneng Power is being advised by Nomura, the sources said.
The sources declined to be named because they are not authorised to speak publicly about the auction.
Source: Reuters
Thailand's top coal miner Banpu may also bid for the stake while mining giants Xstrata and Peabody Energy have previously expressed interest in the stake.
"We are just like the others, which have been approached by financial advisers and we are in the process of considering," Banpu chief executive Chanin Vongkusolkit told Reuters.
Sources said Berau -- Indonesia's fifth-largest coal miner -- has generated strong interest as it is rare for controlling stakes in Indonesian energy firms to be put on the market. The stake offers a steady supply of quality Indonesian thermal coal.
Berau, which has a 1,200 square km (460 sq mile) concession area in East Kalimantan province, produced 13.2 million tonnes of coal in 2008 and aims for production of 15 million tonnes this year.
Armadian Tritunggal -- an investment firm controlled by Indonesian businessman Rizal Risjad -- is selling its 51 percent controlling stake in Berau.
The sale is being run by Deutsche Bank, Bank of America's Merrill Lynch, and former Merrill banker Sheldon Trainor's PacBridge Capital Partners.
Armadian Tritunggal may elect to keep a portion of its controlling stake, a source had previously told Reuters.
"The asset will probably go to a strategic buyer either as a complete buy-out or a large minority stake," said a source familiar with the auction.
It was unclear whether Xstrata and Peabody Energy had submitted bids, which sources said were due a few weeks ago.
Berau is a joint venture between Tritunggal, Dutch firm dan Rognar Holding B.V. and Japanese firm Sojitz Corp, with Rognar and Sojitz owning 39 percent and 10 percent stakes.
The sale by Berau's biggest stakeholder could also trigger the sale of stakes by its minority shareholders. The total value of the company is expected to be worth more than $1 billion.
Berau is also being assessed for a possible initial public offering and the due diligence should be completed by the end of June, president director Bob Kamandanu told Reuters in May.
IPO plans will be included as part of any deal to sell the majority stake, sources said.
Further complicating the deal is an outstanding $300 million high-yield bond arranged by Merrill Lynch, sources have said.
Indika tapped Citigroup to advise on its bid, two of the sources said. Huaneng Power is being advised by Nomura, the sources said.
The sources declined to be named because they are not authorised to speak publicly about the auction.
Source: Reuters
India Shelves Plans For KIOCL Equity Dilution
The Indian government has decided to go ahead with the disinvestment of state-owned Manganese Ore India Ltd, even as it shelved plans for further equity dilution in the ailing KIOCL.
"KIOCL is not a case for disinvestment as of now. Currently, its strategic partnership with NMDC is being worked out. Moreover, we will be sending the proposal for disinvestment of MOIL shortly (to Finance Ministry)," Steel Secretary P K Rastogi told reporters.
The government is likely to offload 10 percent equity in MOIL, which is engaged in mining of manganese and production of ferro alloys.
Meanwhile, the government has put on hold the proposal to offload about 9 per cent equity in the Kudremukh Iron Ore Company Limited (KIOCL), which was closed down last year.
The Finance Ministry had earlier asked its counterpart in the steel ministry to work on divesting stakes in navratna firms NMDC, MOIL and KIOCL, as part of a broader plan to mobilise resources to meet their funding needs.
The government is likely to earn about Rs 102 crore by divesting 10 percent stake in MOIL. It has also been planning to list the company for the past one year now.
The government may also sell a minimum of 8.3 percent stake in already listed NMDC Ltd, which may fetch it over Rs 10,000 crore. It has already offloaded about 1.7 percent of its equity in the country's largest iron ore firm.
About 1 percent stake in Kudremukh Iron Ore Company Ltd (KIOCL) is already offloaded and is listed in regional stock exchanges. As per the 100-day agenda, the government is planning to make it a subsidiary of NMDC and give life to the company shut since last year.
Finance Secretary Ashok Chawla yesterday said that the disinvestment programme will kick off with the dilution of government equity in listed entities, where public holding is less.
Apart from the PSUs under the steel ministry, the government is learnt to have identified MMTC, Coal India Ltd, Hindustan Copper, Oil India Ltd and NHPC for disinvestment.
At the time of presenting the Union Budget for the current fiscal, Finance Minister Pranab Mukherjee said that while retaining the 51 percent stake in the PSUs, the government is committed to the disinvestment programme.
He also added that the public holding in the listed state-run entities should be raised in a phase-wise manner.
The Economic Survey had suggested the government to raise up to Rs 25,000 crore through selling its stake in PSUs.
Source: Zee News
"KIOCL is not a case for disinvestment as of now. Currently, its strategic partnership with NMDC is being worked out. Moreover, we will be sending the proposal for disinvestment of MOIL shortly (to Finance Ministry)," Steel Secretary P K Rastogi told reporters.
The government is likely to offload 10 percent equity in MOIL, which is engaged in mining of manganese and production of ferro alloys.
Meanwhile, the government has put on hold the proposal to offload about 9 per cent equity in the Kudremukh Iron Ore Company Limited (KIOCL), which was closed down last year.
The Finance Ministry had earlier asked its counterpart in the steel ministry to work on divesting stakes in navratna firms NMDC, MOIL and KIOCL, as part of a broader plan to mobilise resources to meet their funding needs.
The government is likely to earn about Rs 102 crore by divesting 10 percent stake in MOIL. It has also been planning to list the company for the past one year now.
The government may also sell a minimum of 8.3 percent stake in already listed NMDC Ltd, which may fetch it over Rs 10,000 crore. It has already offloaded about 1.7 percent of its equity in the country's largest iron ore firm.
About 1 percent stake in Kudremukh Iron Ore Company Ltd (KIOCL) is already offloaded and is listed in regional stock exchanges. As per the 100-day agenda, the government is planning to make it a subsidiary of NMDC and give life to the company shut since last year.
Finance Secretary Ashok Chawla yesterday said that the disinvestment programme will kick off with the dilution of government equity in listed entities, where public holding is less.
Apart from the PSUs under the steel ministry, the government is learnt to have identified MMTC, Coal India Ltd, Hindustan Copper, Oil India Ltd and NHPC for disinvestment.
At the time of presenting the Union Budget for the current fiscal, Finance Minister Pranab Mukherjee said that while retaining the 51 percent stake in the PSUs, the government is committed to the disinvestment programme.
He also added that the public holding in the listed state-run entities should be raised in a phase-wise manner.
The Economic Survey had suggested the government to raise up to Rs 25,000 crore through selling its stake in PSUs.
Source: Zee News
Chinese Steel Prices Rise For 14th Straight Week
China's National Business Daily has reported that to July 20th the price of 25mm rebar was posted at CNY 4090 per tonne in Beijing, a hike of CNY 110 per tonne from last week and of CNY 370 per tonne from a month ago, hitting a record high for the year and pressing the average of CNY 4091 per tonne of last year. This rise, which began in mid-April, has lasted for fourteen weeks.
The rise was strongly driven by the government's 4 trillion yuan investment stimulation, but out of expectation is that the price is moving up so rapidly, even in such a traditional low season in July and approaches the average level of last year.
An official of a construction steel company said the recent price rise is mainly pushed directly by steelmakers' scaling up EXW prices.
Medium- and small-sized steelmakers specialising in construction steel raised prices tentatively in May. Large- and medium-sized makers like Baosteel, Baotou Steel and Hebei Iron and Steel Group, started launching price corrections for June deliveries further fuelling smaller mills to follow hot on their heels.
This round of price improvement is deeper than usual with a range of as high as CNY 100 per tonne each time and even beating CNY 500 per tonne for August delivery. The latest report with Mysteel.com shows that domestic supply and inventory of flat are staying at a high level. HR makers rate of operation has reached 90% and order prices for August deliveries are all above CNY 4000 per tonne.
The cost growth is considered to be the main cause for the steel price hike. The iron ore spot price has surged CNY 100 per tonne plus in a short time, affected by the deadlocked ore talk between Chinese steel makers and three global ore suppliers.
Insiders analysed that it is about time for the market to come back to a normal level taking account of the low season and the prolonged cycle for steel price rises.
Source: Steel Guru
The rise was strongly driven by the government's 4 trillion yuan investment stimulation, but out of expectation is that the price is moving up so rapidly, even in such a traditional low season in July and approaches the average level of last year.
An official of a construction steel company said the recent price rise is mainly pushed directly by steelmakers' scaling up EXW prices.
Medium- and small-sized steelmakers specialising in construction steel raised prices tentatively in May. Large- and medium-sized makers like Baosteel, Baotou Steel and Hebei Iron and Steel Group, started launching price corrections for June deliveries further fuelling smaller mills to follow hot on their heels.
This round of price improvement is deeper than usual with a range of as high as CNY 100 per tonne each time and even beating CNY 500 per tonne for August delivery. The latest report with Mysteel.com shows that domestic supply and inventory of flat are staying at a high level. HR makers rate of operation has reached 90% and order prices for August deliveries are all above CNY 4000 per tonne.
The cost growth is considered to be the main cause for the steel price hike. The iron ore spot price has surged CNY 100 per tonne plus in a short time, affected by the deadlocked ore talk between Chinese steel makers and three global ore suppliers.
Insiders analysed that it is about time for the market to come back to a normal level taking account of the low season and the prolonged cycle for steel price rises.
Source: Steel Guru
Tuesday, July 21, 2009
Pike River Coal Sells Coking Coal To Japan At $128 A Tonne
New Zealand miner Pike River Coal said on Tuesday it had sold its premium hard coking coal at $128 a tonne for the current Japanese fiscal year through to March 2010. The company said there had been some production issues at the mine and the first shipment would leave for Japan about mid-November 2009.
Pike River said that the price met its expectations, and prices should rise in the following year based on increased demand from China.
Source: Reuters
Pike River said that the price met its expectations, and prices should rise in the following year based on increased demand from China.
Source: Reuters
Wisco To Invest $186 Million In South Australia Iron Ore Projects
China's third-largest steel group is to invest $186 million in iron ore projects in South Australia.
An agreement has been signed between Wuhan Iron and Steel and Adelaide-based Centrex Metals and is subject to government approval.
The joint venture is expected to lead to development of two iron ore mines over the next seven years, near Port Lincoln on Eyre Peninsula.
Centrex Metals says the deal is significant because tensions in the global iron ore market are straining negotiations.
Source: ABC
An agreement has been signed between Wuhan Iron and Steel and Adelaide-based Centrex Metals and is subject to government approval.
The joint venture is expected to lead to development of two iron ore mines over the next seven years, near Port Lincoln on Eyre Peninsula.
Centrex Metals says the deal is significant because tensions in the global iron ore market are straining negotiations.
Source: ABC
Gujarat NRE Takes Profit Hit
Gujarat NRE Coke has taken a hit on its bottom line for the first quarter ended June 2009, with net profit touching Rs. 3.64 crore against Rs. 94.40 crore in the same period a year ago. Net sales during the quarter were Rs. 310 crore against Rs. 377.60 crore.
Company sources attributed the dip in profit to the dynamics in the steel industry which has in turn affected the coke industry. “Our results had been affected since the December quarter. However, we are now coming out of the downturn,” a company official told The Hindu. The company had posted a Rs. 103.20-crore loss in the previous quarter, a company release said, adding that the results showed that coke demand in India had been on the rise.
Though the current recession had its impact on the consumption of coke in the global market, the domestic scenario has been improving due to increased consumption levels, which augurs well for merchant-manufacturers of met coke in India.
As company Chairman and Managing Director Arun Kumar Jagatramka says, “Demand for coke has been buoyant in India in the first half of 2009. Shortages of coking coal are adding to the pressure in the market. We plan to increase our capacity further by setting two greenfield plants of one million tonnes each in Andhra Pradesh and Gujarat to take advantage of this ever yawning gap of demand and supply of coke in India.”
Source: The Hindu
Company sources attributed the dip in profit to the dynamics in the steel industry which has in turn affected the coke industry. “Our results had been affected since the December quarter. However, we are now coming out of the downturn,” a company official told The Hindu. The company had posted a Rs. 103.20-crore loss in the previous quarter, a company release said, adding that the results showed that coke demand in India had been on the rise.
Though the current recession had its impact on the consumption of coke in the global market, the domestic scenario has been improving due to increased consumption levels, which augurs well for merchant-manufacturers of met coke in India.
As company Chairman and Managing Director Arun Kumar Jagatramka says, “Demand for coke has been buoyant in India in the first half of 2009. Shortages of coking coal are adding to the pressure in the market. We plan to increase our capacity further by setting two greenfield plants of one million tonnes each in Andhra Pradesh and Gujarat to take advantage of this ever yawning gap of demand and supply of coke in India.”
Source: The Hindu
Monday, July 20, 2009
World Steel Fall Slows Down
The recent fall in world steel output slowed in June, when production fell 16 percent from output in the same month last year to 99.8 million tonnes, with China showing a gain, the World Steel Association reported on Monday.
Production on a yearly basis had declined 21 percent in May, 23.6 percent in April and 23.5 percent in March.
The association, which assesses data from 66 countries, said output in the first half of the year was down 21.3 percent from the same period of 2008.
In Asia, Chinese steel production rose 6.0 percent to 49.4 million tonnes from a year earlier while output fell 33.6 percent in Japan to 6.9 million tonnes and 14.4 percent to 4.0 million tonnes in South Korea.
The United States produced 4.4 million tonnes of steel in June 2009, down 46.9 percent from June 2008, while in Brazil output fell 33.9 percent to 1.9 million tonnes.
Among big producers in Europe, Germany turned out 2.5 million tonnes, a fall of 41.1 percent.
In Russia steel production in June came to 4.9 million tonnes, down 22.1 percent from a year earlier, according to the report.
Source: AFP
Production on a yearly basis had declined 21 percent in May, 23.6 percent in April and 23.5 percent in March.
The association, which assesses data from 66 countries, said output in the first half of the year was down 21.3 percent from the same period of 2008.
In Asia, Chinese steel production rose 6.0 percent to 49.4 million tonnes from a year earlier while output fell 33.6 percent in Japan to 6.9 million tonnes and 14.4 percent to 4.0 million tonnes in South Korea.
The United States produced 4.4 million tonnes of steel in June 2009, down 46.9 percent from June 2008, while in Brazil output fell 33.9 percent to 1.9 million tonnes.
Among big producers in Europe, Germany turned out 2.5 million tonnes, a fall of 41.1 percent.
In Russia steel production in June came to 4.9 million tonnes, down 22.1 percent from a year earlier, according to the report.
Source: AFP
Vala Agrees 28 Per Cent Price Cut With Lucchini
Brazilian miner Vale said on Monday it had closed an iron ore price agreement with Italy's major steelmaker Lucchini, cutting prices by 28.2 percent from 2008 levels.
Lucchini is controlled by Russia's Severstal.
Vale, the world's largest producer of iron ore, on Friday announced price agreements with Italian and Turkish steel mills that cut iron prices by similar levels.
Iron prices are set each year through a benchmarking system based on bilateral talks between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished this year's price talks with Chinese steel mills following months of negotiations and the detention of Rio mining executives that has sparked diplomatic tension between China and Australia.
Source: Reuters
Lucchini is controlled by Russia's Severstal.
Vale, the world's largest producer of iron ore, on Friday announced price agreements with Italian and Turkish steel mills that cut iron prices by similar levels.
Iron prices are set each year through a benchmarking system based on bilateral talks between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished this year's price talks with Chinese steel mills following months of negotiations and the detention of Rio mining executives that has sparked diplomatic tension between China and Australia.
Source: Reuters
Illegal Manganese Mining Resumes In Ha Tinh Province
Illegal manganese mining has resumed in Ha Tinh Province’s Can Loc District after a period of inactivity since the end of June.
The ore is transported and sold in Nghe An Province at VND300,000-500,000 a cubic metre, depending on quality.
Nguyen Dinh Lan, director of Ha Tinh Manganese Minerals Co., told SGGP that his company has set up patrols but failed to stop the illegal mining since the miners are aggressive and usually go around in large groups.
They steal 30-40 tons of manganese daily, he said.
“We have reported it to the commune People’s Committee and police but it continues,” he complained.
Manganese ore reportedly fetches a good price across the border in Laos which has set off a mining frenzy in the area.
Source: Saigon GP Daily
The ore is transported and sold in Nghe An Province at VND300,000-500,000 a cubic metre, depending on quality.
Nguyen Dinh Lan, director of Ha Tinh Manganese Minerals Co., told SGGP that his company has set up patrols but failed to stop the illegal mining since the miners are aggressive and usually go around in large groups.
They steal 30-40 tons of manganese daily, he said.
“We have reported it to the commune People’s Committee and police but it continues,” he complained.
Manganese ore reportedly fetches a good price across the border in Laos which has set off a mining frenzy in the area.
Source: Saigon GP Daily
Jindal Buys Turkish Chrome Ore Assets
It is reported that Indian steelmaker JSL has acquired chrome ore assets in Turkey. The transaction will help JSL meet its raw material requirements and to control input costs.
The acquired mines, which cost the company about USD 6 million, will meet captive chrome ore requirements of the proposed stainless plant in Orissa and also serve the demand of Asian, European and American markets.
The total chrome reserves that JSL has acquired from individual investors, having interests in mineral resources at six to seven different locations in Turkey, could be over 2 million tonnes.
Source: Steel Guru
The acquired mines, which cost the company about USD 6 million, will meet captive chrome ore requirements of the proposed stainless plant in Orissa and also serve the demand of Asian, European and American markets.
The total chrome reserves that JSL has acquired from individual investors, having interests in mineral resources at six to seven different locations in Turkey, could be over 2 million tonnes.
Source: Steel Guru
Iron Ore Price Rises Above $90 A Tonne
Cash prices for iron ore delivered to China, the world’s biggest buyer, traded above $90 a metric ton for the first time this year amid rising imports by the Asian nation.
Ore for immediate delivery rose 4.6 percent to $91 a metric ton in the week ended July 17, according to Metal Bulletin prices for 63.5 percent ore. That’s the highest since Oct. 10, 2008. The price for 62 percent ore rose 1.4 percent to $82.80 a ton, according to Steel Business Briefing prices.
Source: Bloomberg
Ore for immediate delivery rose 4.6 percent to $91 a metric ton in the week ended July 17, according to Metal Bulletin prices for 63.5 percent ore. That’s the highest since Oct. 10, 2008. The price for 62 percent ore rose 1.4 percent to $82.80 a ton, according to Steel Business Briefing prices.
Source: Bloomberg
Indian Steel Ministry Wants Quicker Iron Ore Licence Allocations
Lamenting that undue delays in allotting captive iron ore mines to steel companies were dissuading them from going full throttle on capacity expansion, the Steel Ministry has asked the Mines Ministry to adequately equip the empowered committee to accord prior approval for mineral concessions on behalf of the Central government.
In a letter, the Steel Ministry told the Mines Ministry that it is highly imperative that iron ore linkage in the form of captive mines be made available to the steel plants while reminding that “a number of projects in the steel sector are getting delayed due to non-allotment of mines to them either due to dilatory tendencies of the state governments or due to other reasons.” It argued that the Coordination-cum-Empowered Committee, set up by the mines ministry to act as a single window clearance system to monitor and minimise delays in the grant of various approvals for mineral concessions, “has not been adequately empowered to accord prior approval on behalf of the Centre for doing so.”
Source: Indian Express
In a letter, the Steel Ministry told the Mines Ministry that it is highly imperative that iron ore linkage in the form of captive mines be made available to the steel plants while reminding that “a number of projects in the steel sector are getting delayed due to non-allotment of mines to them either due to dilatory tendencies of the state governments or due to other reasons.” It argued that the Coordination-cum-Empowered Committee, set up by the mines ministry to act as a single window clearance system to monitor and minimise delays in the grant of various approvals for mineral concessions, “has not been adequately empowered to accord prior approval on behalf of the Centre for doing so.”
Source: Indian Express
Sunday, July 19, 2009
Indian Government May Discuss Manganese Divestment Plan
India's Steel Minister Virbhadra Singh may discuss on Monday plans on divesting the government's stake in Manganese Ore (India) Ltd at the performance review meeting of public sector companies.
"The work on listing of MOIL has been going on for long now. Now the finance ministry has asked us to expedite the disinvestment process in the company. The (steel) minister is likely to take a call on disinvestment in MOIL in tomorrow's meeting," a senior steel ministry official said.
The minister will also review the performance of ICVL, a SPV formed by five leading PSUs like Coal India, SAIL to acquire mining property abroad, he said.
The finance ministry has asked the steel ministry to work on divesting stake in MOIL, NMDC and KIOCL, he said. On the ailing KIOCL, the ministry could go slow till it is acquired by NMDC, he added.
Explaining further, the official said the government may divest a minimum of 8.3 per cent stake in already listed iron ore miner National Mineral Development Corporation, which will fetch the government over Rs 10,000 crore.
In Kudremukh Iron Ore Company Ltd (KIOCL), which is also listed, the government may divest about 9 per cent stake and in Manganese Ore India Ltd (MOIL) about 10 per cent stake may be sold.
The disinvestment in KIOCL and MOIL may fetch the government together about Rs 1,000 crore.
For listed entities, the government may consider follow-on public issue, he added.
Source: The Hindu
"The work on listing of MOIL has been going on for long now. Now the finance ministry has asked us to expedite the disinvestment process in the company. The (steel) minister is likely to take a call on disinvestment in MOIL in tomorrow's meeting," a senior steel ministry official said.
The minister will also review the performance of ICVL, a SPV formed by five leading PSUs like Coal India, SAIL to acquire mining property abroad, he said.
The finance ministry has asked the steel ministry to work on divesting stake in MOIL, NMDC and KIOCL, he said. On the ailing KIOCL, the ministry could go slow till it is acquired by NMDC, he added.
Explaining further, the official said the government may divest a minimum of 8.3 per cent stake in already listed iron ore miner National Mineral Development Corporation, which will fetch the government over Rs 10,000 crore.
In Kudremukh Iron Ore Company Ltd (KIOCL), which is also listed, the government may divest about 9 per cent stake and in Manganese Ore India Ltd (MOIL) about 10 per cent stake may be sold.
The disinvestment in KIOCL and MOIL may fetch the government together about Rs 1,000 crore.
For listed entities, the government may consider follow-on public issue, he added.
Source: The Hindu
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