TSX-listed Breakwater Resources has sold basic royalties on a portion of the zinc produced over the life of its Myra Falls mine, in British Columbia, the company reported on Thursday.
Breakwater said it entered into royalty agreements with Red Mile Resources and Ronpam Resources, and received cash of C$69,4-million, including royalty income of C$62,6-million and fees and interest of C$6,8-million.
Under the terms of the agreement, the company will make basic royalty payments at fixed amounts per pound of payable zinc produced.
The amounts escalate from $0,022/lb to $0,193 per pound for the Red Mile royalty and from $0,015 per pound to $0,043 per pound for the Ronpam royalty over the first eleven years of the respective royalty agreements.
Also, the royalty firms can receive a varying net profit interest if the zinc price reaches certain levels in the years 2015 to 2019.
Of the cash received, C$62,6-million was placed with a financial institution in return for promissory notes.
Interest earned from the promissory notes will be used to fund the expected basic royalty payments during the initial years of the royalty agreements.
Over the remaining years, interest and principal from the promissory notes will be used to fund the basic royalty payments.
The balance of the funds, C$6,8-million, will be used for general corporate purposes, Breakwater said.
Source: Mining Weekly
Thursday, December 31, 2009
Turkish Chrome Ore Market In A Bullish Mood
Asian Metal reports that now many Turkish chrome ore suppliers are offering lumpy chrome ore 42% at above USD 300 per tonne CIF CFR China due to the tight supply in such a winter condition. Meanwhile, the Pakistani chrome ore market follows Turkish chrome ore trend with a high price level.
A major producer in Turkey reported to Asian Metal that the chrome ore market is bullish, as they have received many recent enquiries from Chinese buyers. According to the source, he signed contracts with a total quantity of 80,000 tonnes and their price range for lumpy chrome ore 40% to 42% was between USD 315 and USD 325 per tonne CFR China.
He said that "I heard many Turkish chrome ore suppliers increase their offers for lumpy chrome ore 42% to above USD 300 per tonne CFR China due to tight supply in such a special season." He added that as the supply in the following weeks would be tighter and tighter, the price of Turkish chrome ore market is likely to go up further.
A Turkish chrome ore trader offered about USD 300 per tonne CIF China for 2,000 tonnes of lumpy chrome ore 42% to 40% recently.
The trader said that "Although we received many enquiries from Chinese buyers and those buyers ask for USD 10 to USD 15 per tonne lower than our offers, we would rather watch the market than sell our stocks at low prices. I think Chinese buyers will come back to accept our prices in January."
A Pakistani chrome ore trader informed that they offered for 1,000 tonnes of lumpy chrome ore 40% to 42% at about USD 300 per tonne CIF Chinese main ports recently, but there was no deal concluded with Chinese buyers recently.
According to the source, they sold 1,000 tonnes of the material at about USD280 per tonne CIF Shanghai port a week ago. It added that "Now we refuse to sell the material at below USD290 per tonne CIF CMP, as we expect higher chrome ore prices next month, just following Turkish chrome ore market trend."
Source: Steel Guru/Asian Metal
A major producer in Turkey reported to Asian Metal that the chrome ore market is bullish, as they have received many recent enquiries from Chinese buyers. According to the source, he signed contracts with a total quantity of 80,000 tonnes and their price range for lumpy chrome ore 40% to 42% was between USD 315 and USD 325 per tonne CFR China.
He said that "I heard many Turkish chrome ore suppliers increase their offers for lumpy chrome ore 42% to above USD 300 per tonne CFR China due to tight supply in such a special season." He added that as the supply in the following weeks would be tighter and tighter, the price of Turkish chrome ore market is likely to go up further.
A Turkish chrome ore trader offered about USD 300 per tonne CIF China for 2,000 tonnes of lumpy chrome ore 42% to 40% recently.
The trader said that "Although we received many enquiries from Chinese buyers and those buyers ask for USD 10 to USD 15 per tonne lower than our offers, we would rather watch the market than sell our stocks at low prices. I think Chinese buyers will come back to accept our prices in January."
A Pakistani chrome ore trader informed that they offered for 1,000 tonnes of lumpy chrome ore 40% to 42% at about USD 300 per tonne CIF Chinese main ports recently, but there was no deal concluded with Chinese buyers recently.
According to the source, they sold 1,000 tonnes of the material at about USD280 per tonne CIF Shanghai port a week ago. It added that "Now we refuse to sell the material at below USD290 per tonne CIF CMP, as we expect higher chrome ore prices next month, just following Turkish chrome ore market trend."
Source: Steel Guru/Asian Metal
Liberia To Restart Iron Ore Production In 2011
Liberia is set to restart its ore mines in 2011 after the easing of political instability in the country, the International Monetary Fund (IMF) has said in a report on Liberia.
According to the report, growth is to be boosted through positive spillover effects on other sectors as iron ore production restarts in the country. Meanwhile, tax revenues from the two largest iron ore projects that are projected to start in 2011-12 are expected to reach about $260 million by 2014, accounting for 17 percent of the country's GDP.
The country is expected to grow 7.5 percent in 2010 and in two-digit numbers from 2011 until 2013. Although the medium-term prospects for Liberia remain favorable, the economy is heavily dependent on the restart of iron ore production in 2011 and on continued political stability. Accordingly, delays in iron ore investments are seen as constituting a financial risk for Liberia, the report concludes.
Source: Alibaba
According to the report, growth is to be boosted through positive spillover effects on other sectors as iron ore production restarts in the country. Meanwhile, tax revenues from the two largest iron ore projects that are projected to start in 2011-12 are expected to reach about $260 million by 2014, accounting for 17 percent of the country's GDP.
The country is expected to grow 7.5 percent in 2010 and in two-digit numbers from 2011 until 2013. Although the medium-term prospects for Liberia remain favorable, the economy is heavily dependent on the restart of iron ore production in 2011 and on continued political stability. Accordingly, delays in iron ore investments are seen as constituting a financial risk for Liberia, the report concludes.
Source: Alibaba
Wednesday, December 30, 2009
China On Front Foot In Iron Ore Negotiations
Australia's iron ore giants face another pitched battle with China's aggressive steel sector as they begin discussions that could see prices rise by up to 30 per cent for 2010.
The China Iron & Steel Association admitted yesterday that producers were seeking a price increase of 20-30 per cent -- at least double what mills appear to be prepared to pay.
The impasse risks a re-run of this year's acrimony, when talks collapsed after the arrest of four Rio Tinto executives, including Australian Stern Hu, the company's lead negotiator.
Both sides are starting afresh, with China's largest steelmaker, Baosteel, back to lead negotiations after CISA failed to nail down a result in 2009, costing the Chinese steel sector tens of million of dollars as prices recovered more sharply than expected and they became exposed to rising spot prices.
CISA vice-chairman Luo Bingsheng, in an interview with the China Securities Journal, warned of ``a large degree of difficulty'' in ongoing price talks.
Start of sidebar. Skip to end of sidebar.
Related CoverageSteel glut tipped to worsen Herald Sun, 3 Nov 2009
Fortescue misses financing deadline Herald Sun, 30 Sep 2009
First deal on ore price Herald Sun, 17 Aug 2009
Fortescue cuts China ore price by 35pc The Australian, 17 Aug 2009
China ore demand set to drop The Australian, 3 Aug 2009
.End of sidebar. Return to start of sidebar.
China, which produces half the world's steel, wanted to reduce ore imports and set a ``unified price'' for iron ore imports, Mr Luo said.
Analysts have widely tipped a rise of 10-20 per cent on the benchmark prices set with Japanese and Korean mills this year, which became de facto contract prices for China.
Mr Luo's public response indicates China's continued determination to control the price-setting process for one of the world's most crucial industrial commodities.
However, the days of a single, industry-wide price are already over, with steel mills using a number of indices to set prices. As well as contract prices, the spot market and a blended pricing mechanism are increasingly used.
The world's third-biggest iron ore producer, BHP Billiton, has been heavily promoting a quarterly index system based on averaged spot prices for number of years.
Du Wei, an analyst at Umetal.net, was not sure a 30 per cent price rise would be obtained.
"The negotiation is yet to begin, and whether the long-term contract market still exists or not is uncertain," she said.
Custeel.com analyst Fu Yao said both prices and annual production were expected to grow, but the rate depended on many factors: ``It's too early to predict that by the end of 2010, the overall price will rise by 30 per cent.
"There are changing elements which might come forth in the second quarter of 2010."
Source: The Australian
The China Iron & Steel Association admitted yesterday that producers were seeking a price increase of 20-30 per cent -- at least double what mills appear to be prepared to pay.
The impasse risks a re-run of this year's acrimony, when talks collapsed after the arrest of four Rio Tinto executives, including Australian Stern Hu, the company's lead negotiator.
Both sides are starting afresh, with China's largest steelmaker, Baosteel, back to lead negotiations after CISA failed to nail down a result in 2009, costing the Chinese steel sector tens of million of dollars as prices recovered more sharply than expected and they became exposed to rising spot prices.
CISA vice-chairman Luo Bingsheng, in an interview with the China Securities Journal, warned of ``a large degree of difficulty'' in ongoing price talks.
Start of sidebar. Skip to end of sidebar.
Related CoverageSteel glut tipped to worsen Herald Sun, 3 Nov 2009
Fortescue misses financing deadline Herald Sun, 30 Sep 2009
First deal on ore price Herald Sun, 17 Aug 2009
Fortescue cuts China ore price by 35pc The Australian, 17 Aug 2009
China ore demand set to drop The Australian, 3 Aug 2009
.End of sidebar. Return to start of sidebar.
China, which produces half the world's steel, wanted to reduce ore imports and set a ``unified price'' for iron ore imports, Mr Luo said.
Analysts have widely tipped a rise of 10-20 per cent on the benchmark prices set with Japanese and Korean mills this year, which became de facto contract prices for China.
Mr Luo's public response indicates China's continued determination to control the price-setting process for one of the world's most crucial industrial commodities.
However, the days of a single, industry-wide price are already over, with steel mills using a number of indices to set prices. As well as contract prices, the spot market and a blended pricing mechanism are increasingly used.
The world's third-biggest iron ore producer, BHP Billiton, has been heavily promoting a quarterly index system based on averaged spot prices for number of years.
Du Wei, an analyst at Umetal.net, was not sure a 30 per cent price rise would be obtained.
"The negotiation is yet to begin, and whether the long-term contract market still exists or not is uncertain," she said.
Custeel.com analyst Fu Yao said both prices and annual production were expected to grow, but the rate depended on many factors: ``It's too early to predict that by the end of 2010, the overall price will rise by 30 per cent.
"There are changing elements which might come forth in the second quarter of 2010."
Source: The Australian
Cuban Nickel Output The Lowest In A Decade
Cuba's unrefined nickel plus cobalt production appears to have been between 60,000 and 65,000 tonnes this year, the lowest in a decade, according to scattered radio reports this week.
Cuba produced 70,400 tonnes of unrefined nickel and cobalt in 2008, after averaging between 74,000 and 75,000 tonnes during much of the decade.
While production at Canadian mining company Sherritt International's (S.TO) nickel venture in Cuba topped 37,000 tonnes, output at two plants owned by state-run Cubaniquel was well below capacity.
Cuba has not announced this year's nickel output, with officials simply stating it was less than the 70,000 tonnes planned.
The Caribbean island is one of the world's largest nickel producers and supplies 10 percent of the world's cobalt, according to the Basic Industry Ministry.
"The Pedro Soto Alba plant met this year's plan, producing more than 37,000 tonnes of nickel, and remains open," Jorge Cuevas Ramos, the first secretary of the Communist Party in Holguin, was quoted by national state-run Radio Rebelde on Wednesday as stating.
Radio stations based in Holguin, where the three plants are located, reported this week that production at the Cuba-owned Ernesto Che Guevara plant, with a capacity of 32,000 tonnes, did not meet it's 26,000-tonne plan.
There was no mention of output at the country's third and oldest plant, the Rene Ramos Latourt at Nicaro Holguin, which has a capacity of 10,000 to 15,000 tonnes and is also operated by Cubaniquel.
Scattered reports this year indicated Rene Ramos Latourt and the feed process to the plant were operating below capacity at various times, so there were most likely production problems there as well.
Hurricane Ike, a Category 3 storm, hit Cuba in September 2008 at Holguin's northern coast, where the nickel industry's three processing plants are located, damaging the two Cubaniquel plants, infrastructure, housing and buildings and swamping the area with torrential rains and a storm surge.
Nickel is essential in the production of stainless steel and other corrosion-resistant alloys. Cobalt is critical in production of super alloys used for such products as aircraft engines.
Cuban nickel is considered to be Class II, with an average 90 percent nickel content.
Cuba's National Minerals Resource Center reported that eastern Holguin province accounted for more than 30 percent of the world's known nickel reserves, with lesser reserves in other parts of the country.
Source: Reuters
Cuba produced 70,400 tonnes of unrefined nickel and cobalt in 2008, after averaging between 74,000 and 75,000 tonnes during much of the decade.
While production at Canadian mining company Sherritt International's (S.TO) nickel venture in Cuba topped 37,000 tonnes, output at two plants owned by state-run Cubaniquel was well below capacity.
Cuba has not announced this year's nickel output, with officials simply stating it was less than the 70,000 tonnes planned.
The Caribbean island is one of the world's largest nickel producers and supplies 10 percent of the world's cobalt, according to the Basic Industry Ministry.
"The Pedro Soto Alba plant met this year's plan, producing more than 37,000 tonnes of nickel, and remains open," Jorge Cuevas Ramos, the first secretary of the Communist Party in Holguin, was quoted by national state-run Radio Rebelde on Wednesday as stating.
Radio stations based in Holguin, where the three plants are located, reported this week that production at the Cuba-owned Ernesto Che Guevara plant, with a capacity of 32,000 tonnes, did not meet it's 26,000-tonne plan.
There was no mention of output at the country's third and oldest plant, the Rene Ramos Latourt at Nicaro Holguin, which has a capacity of 10,000 to 15,000 tonnes and is also operated by Cubaniquel.
Scattered reports this year indicated Rene Ramos Latourt and the feed process to the plant were operating below capacity at various times, so there were most likely production problems there as well.
Hurricane Ike, a Category 3 storm, hit Cuba in September 2008 at Holguin's northern coast, where the nickel industry's three processing plants are located, damaging the two Cubaniquel plants, infrastructure, housing and buildings and swamping the area with torrential rains and a storm surge.
Nickel is essential in the production of stainless steel and other corrosion-resistant alloys. Cobalt is critical in production of super alloys used for such products as aircraft engines.
Cuban nickel is considered to be Class II, with an average 90 percent nickel content.
Cuba's National Minerals Resource Center reported that eastern Holguin province accounted for more than 30 percent of the world's known nickel reserves, with lesser reserves in other parts of the country.
Source: Reuters
Cleco Fires Up Lousiana Pet Coke Plant
Cleco Power LLC has fired up Rodemacher 3, its new coal and petroleum coke electricity generating unit, and plans to put it into commercial operation early next year.
The Pineville utility, which provides power in St. Tammany Parish, has been working on the $1 billion addition to an existing power plant north of Alexandria since April 2006 to diversify its fuel sources and lower customer bills.
Cleco traditionally has the highest fuel adjustment charges in the New Orleans area because it relies heavily on natural gas, so it added a third unit its Rodemacher plant to coal and petroleum coke, a refinery byproduct that is abundant and cheap in Louisiana.
The trade-off is clean air; while the plant has been built with the latest technology, burning coal and petroleum coke isn't as clean as burning natural gas.
So far, Louisiana refineries have shipped about 400,000 tons of petroleum coke to the site.
Cleco customers will begin paying for Rodemacher 3 as soon as it begins commercial operation, but the company says that overall bills will go down about three percent because of declines in fuel adjustment charges.
Source: NOLA.com
The Pineville utility, which provides power in St. Tammany Parish, has been working on the $1 billion addition to an existing power plant north of Alexandria since April 2006 to diversify its fuel sources and lower customer bills.
Cleco traditionally has the highest fuel adjustment charges in the New Orleans area because it relies heavily on natural gas, so it added a third unit its Rodemacher plant to coal and petroleum coke, a refinery byproduct that is abundant and cheap in Louisiana.
The trade-off is clean air; while the plant has been built with the latest technology, burning coal and petroleum coke isn't as clean as burning natural gas.
So far, Louisiana refineries have shipped about 400,000 tons of petroleum coke to the site.
Cleco customers will begin paying for Rodemacher 3 as soon as it begins commercial operation, but the company says that overall bills will go down about three percent because of declines in fuel adjustment charges.
Source: NOLA.com
CISA Expects Miners To Call For 20 to 30 Per Cent Price Increase
China's steel industry association expects foreign miners to call for a 20-30 percent increase in benchmark iron ore prices in 2010, the official China Securities Journal reported on Wednesday.
Luo Bingsheng, vice-chairman of the China Iron and Steel Association (CISA), told the newspaper that the proposed price rises would complicate negotiations with Rio Tinto and BHP Billiton of Australia and Vale of Brazil.
Luo told the newspaper that prospects for the Chinese steel industry in 2010 were much better than this year, with crude steel demand likely to increase by another 60 million tonnes.
CISA said last week that total crude steel output for 2009 was expected to reach 565 million tonnes.
Source: Reuters
Luo Bingsheng, vice-chairman of the China Iron and Steel Association (CISA), told the newspaper that the proposed price rises would complicate negotiations with Rio Tinto and BHP Billiton of Australia and Vale of Brazil.
Luo told the newspaper that prospects for the Chinese steel industry in 2010 were much better than this year, with crude steel demand likely to increase by another 60 million tonnes.
CISA said last week that total crude steel output for 2009 was expected to reach 565 million tonnes.
Source: Reuters
Rio Tinto Mines 50mn Tonnes From Single Mine
Rio Tinto mined more than 50 million tonnes of iron ore, or a quarter of its total output this year, from a single mine in Western Australia for the first time as demand for the raw material recovered.
The Yandicoogina mine in the Pilbara, one of a handful worked by Rio Tinto, achieved the figure after operating at about a 40 million tonnes a year rate until April, the company said today.
Rio Tinto, along with fellow Australian iron ore miners including BHP Billiton and Fortescue Metals Group, are racing to dig mines as steel mills across Asia increase production.
Rio Tinto, which sells about half its iron ore at spot market prices and the rest on agreed annual contracts, expects year-end figures to show it produced between 210-215 million tonnes in 2009, up from 170 million tonnes in 2008.
Spot iron ore prices have been on an upward trajectory since mid-October to the current price of around $US110 a tonne, cfr China, meaning the seller is responsible for paying for shipping, while the buyer is responsible for transportation risk as soon as the ore is loaded onto the ship.
Contract prices, which recoiled between 33 per cent and 44 per cent in the current shipping year, are forecast to rise by as much as a third after next year as weak demand that swept through the sector decimating industrial activity abates.
BHP is targeting a 31 per cent rise in iron or output to 205 million tonnes by 2011. Fortescue is aiming to lift annual production to 45 million tonnes from 38 million this year.
Smaller miners Atlas Mining and BC Iron are also planning incremental production increases.
Source: Reuters
The Yandicoogina mine in the Pilbara, one of a handful worked by Rio Tinto, achieved the figure after operating at about a 40 million tonnes a year rate until April, the company said today.
Rio Tinto, along with fellow Australian iron ore miners including BHP Billiton and Fortescue Metals Group, are racing to dig mines as steel mills across Asia increase production.
Rio Tinto, which sells about half its iron ore at spot market prices and the rest on agreed annual contracts, expects year-end figures to show it produced between 210-215 million tonnes in 2009, up from 170 million tonnes in 2008.
Spot iron ore prices have been on an upward trajectory since mid-October to the current price of around $US110 a tonne, cfr China, meaning the seller is responsible for paying for shipping, while the buyer is responsible for transportation risk as soon as the ore is loaded onto the ship.
Contract prices, which recoiled between 33 per cent and 44 per cent in the current shipping year, are forecast to rise by as much as a third after next year as weak demand that swept through the sector decimating industrial activity abates.
BHP is targeting a 31 per cent rise in iron or output to 205 million tonnes by 2011. Fortescue is aiming to lift annual production to 45 million tonnes from 38 million this year.
Smaller miners Atlas Mining and BC Iron are also planning incremental production increases.
Source: Reuters
Kagara Buys Liontown Deposit
Zinc and copper producer Kagara Ltd has bought a metals deposit from Liontown Resources Ltd for $4.5 million.
Kagara has agreed to buy the Liontown deposit, which is thought to have a resource of 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28 grams per tonne of silver, and 0.55 grams per tonne of gold.
The company will pay Liontown Resources $2.25 million in Kagara shares, plus another $2.25 million on commencement of mining operations.
The deposit lies adjacent to Kagara's Waterloo deposit and will significantly increase the company's resources in the area, Kagara said in a statement.
The deposit is near Charters Towers, in Queensland's northeast and is just 30 kilometres from Kagara's Thalanga processing plant.
Completion of the deal is expected to occur on January 6, when the Kagara shares will be issued.
Liontown's managing director Doug Jones said given Kagara's ownership of Waterloo and a nearby processing plant it was a natural buyer of the project.
Source: AAP
Kagara has agreed to buy the Liontown deposit, which is thought to have a resource of 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28 grams per tonne of silver, and 0.55 grams per tonne of gold.
The company will pay Liontown Resources $2.25 million in Kagara shares, plus another $2.25 million on commencement of mining operations.
The deposit lies adjacent to Kagara's Waterloo deposit and will significantly increase the company's resources in the area, Kagara said in a statement.
The deposit is near Charters Towers, in Queensland's northeast and is just 30 kilometres from Kagara's Thalanga processing plant.
Completion of the deal is expected to occur on January 6, when the Kagara shares will be issued.
Liontown's managing director Doug Jones said given Kagara's ownership of Waterloo and a nearby processing plant it was a natural buyer of the project.
Source: AAP
Tuesday, December 29, 2009
China's Coal Production Up 26 Per Cent In November
In November, China's coal production was 289mln tons, up 26.3% year on year, an increase of 5.2% over last month. China's average daily trucks loading coal were 73859 units, up 1% from last month and 11.6% year on year. The coal shipment was 150mln tons, boosted by 1.8% year on year. Coal inventory increased at the main transshipment ports and the stockpiled coal in power plants declined. At the end of November, coal inventory was 7.2mln tons at Qinhuangdao Port, up 70,000 tons over last month and down 12.5mln tons year on year. Coal inventory was 23.8mln tons in power- supplying plants, down 4.91mln tons over last month and 27.84mln tons year on year.
In Jan. - Nov., China's raw coal output was 2.705bln tons, up 12.6% year on year, down 0.8% year on year. China's average daily trucks loading coal were 69796 units, down 3.3% year on year, and the coal shipment was 1.529bln tons, down 0.7% year on year. According to the customs statistic, coal export was 20.33mln tons, down 50.4% year on year, while the coal import was 109.52mln tons, up 190%. Net import was 89019mln tons, while it was 2.86mln tons in the same period last year.
In Jan.-Nov., the coal industry achieved 182.7bln yuan, down 9.4% year on year
In Jan. - Nov., China's raw coal output was 2.705bln tons, up 12.6% year on year, down 0.8% year on year. China's average daily trucks loading coal were 69796 units, down 3.3% year on year, and the coal shipment was 1.529bln tons, down 0.7% year on year. According to the customs statistic, coal export was 20.33mln tons, down 50.4% year on year, while the coal import was 109.52mln tons, up 190%. Net import was 89019mln tons, while it was 2.86mln tons in the same period last year.
In Jan.-Nov., the coal industry achieved 182.7bln yuan, down 9.4% year on year
Belon To Increase Coking Coal Production by 44 Per Cent
In 2010 Russia's Magnitogorsk Iron and Steel Works plans to increase coking coal production at its Belon enterprises by 44%.
In October 2009 MMK completed a transaction on consolidation of 82.6% of Belon, one of the biggest Russian coal producers stake. Almost at the same time Belon received from the Russian government state guarantees for USD 3.7 billion line of credit.
At the end of October Mr V Rashnikov chairman of Board of Directors MMK met with Mr A Tuleev governor of the Kemerovo region to discuss not only future prospects of the coal company, but also current situation in the coal industry of the region and raw materials supplied to MMK.
Capital costs at Belon enterprises in 2010 will reach about USD 110 million.
Source: Steel Guru
In October 2009 MMK completed a transaction on consolidation of 82.6% of Belon, one of the biggest Russian coal producers stake. Almost at the same time Belon received from the Russian government state guarantees for USD 3.7 billion line of credit.
At the end of October Mr V Rashnikov chairman of Board of Directors MMK met with Mr A Tuleev governor of the Kemerovo region to discuss not only future prospects of the coal company, but also current situation in the coal industry of the region and raw materials supplied to MMK.
Capital costs at Belon enterprises in 2010 will reach about USD 110 million.
Source: Steel Guru
Monday, December 28, 2009
Chinese Miner Buys South American Iron Ore Mine
A privately-run Chinese firm has acquired an iron ore mine in south America, which is reported as having one of the largest iron ore reserves in the world. The buy-out is raising hope of a breakthrough in deadlocked talks over the price of iron ore.
Privately-run company, overseas acquisition, and one of the largest iron ore reserves. The highlights of this deal have attracted much public attention.
Li Zihao, Chairman of Guangdong Shunde Rixin Dev't said "We acquired a 70 percent stake. Now we have both the right to mine and the right to set prices."
Located in Chile, this iron ore mine has a reserve of 3 billion tons. In the next five years, it is expected to provide 10 percent of China's total iron ore imports. But public attention is more focused on whether the deal will affect China's iron ore talks in the international market.
Xu Xiangchun, Chief Analyst of Mysteel.com said "If its output is only in terms of millions of tons for the next year, there will be little change to the negative situation that China is facing. That amount is not enough."
Li Zihao said "This deal will only affect price talks if the output is massive. At present, China doesn't own mining rights overseas. So prices are controlled by foreign companies. But if we hold a big reserve, we can decide on the price to sell in our market. And if foreign companies don't follow suit, they will lose part of the market share."
Xu Xiangchun said "In the long term, the deal is positive. It will help China's steel industry shake off its over reliance on the top three miners."
China's steel industry has long suffered a disadvantage in international iron ore talks, given rapid expansion and a shortage of raw materials. Recent reports of a merger between Rio Tinto and BHP Billiton, two of the world's top three miners, are sparking fears of a further barrier to Chinese steel makers. But the industry now hopes that the overseas acquisition could be a new channel to break the monopoly.
Source: CCTV
Privately-run company, overseas acquisition, and one of the largest iron ore reserves. The highlights of this deal have attracted much public attention.
Li Zihao, Chairman of Guangdong Shunde Rixin Dev't said "We acquired a 70 percent stake. Now we have both the right to mine and the right to set prices."
Located in Chile, this iron ore mine has a reserve of 3 billion tons. In the next five years, it is expected to provide 10 percent of China's total iron ore imports. But public attention is more focused on whether the deal will affect China's iron ore talks in the international market.
Xu Xiangchun, Chief Analyst of Mysteel.com said "If its output is only in terms of millions of tons for the next year, there will be little change to the negative situation that China is facing. That amount is not enough."
Li Zihao said "This deal will only affect price talks if the output is massive. At present, China doesn't own mining rights overseas. So prices are controlled by foreign companies. But if we hold a big reserve, we can decide on the price to sell in our market. And if foreign companies don't follow suit, they will lose part of the market share."
Xu Xiangchun said "In the long term, the deal is positive. It will help China's steel industry shake off its over reliance on the top three miners."
China's steel industry has long suffered a disadvantage in international iron ore talks, given rapid expansion and a shortage of raw materials. Recent reports of a merger between Rio Tinto and BHP Billiton, two of the world's top three miners, are sparking fears of a further barrier to Chinese steel makers. But the industry now hopes that the overseas acquisition could be a new channel to break the monopoly.
Source: CCTV
Saturday, December 26, 2009
India Raises Export Duty On Iron Ore Fines And Lumps
The Indian Government has increased the export duty on iron ore fines and lumps by 5 per cent each, a decision which the industry said would adversely affect the mining sector.
The Government has raised the export duty on iron ore lumps to 10 per cent from 5 per cent and on iron ore fines to 5 per cent from nil, said a finance ministry notification.
“This decision has come at a wrong time when the exports were picking up and showing signs of recovery,” said Mr R K Sharma, Secretary General of the Federation of Indian Minerals Industries (FIMI).
“This will have cascading effect on the steel industry.
The finance ministry should have waited for some time before increasing the export duty and should have allowed the steel industry to recover from the global economic meltdown,” he added.
The Steel Minister, Mr Virbhadra Singh had earlier in a letter to the Finance Minister, Mr Pranab Mukherjee demanded 10 per cent export duty on all grades of iron ore.
India currently is third largest exporter of iron ore in the world after Australia and Brazi.
Source: PTI/The Hindu Business Line
The Government has raised the export duty on iron ore lumps to 10 per cent from 5 per cent and on iron ore fines to 5 per cent from nil, said a finance ministry notification.
“This decision has come at a wrong time when the exports were picking up and showing signs of recovery,” said Mr R K Sharma, Secretary General of the Federation of Indian Minerals Industries (FIMI).
“This will have cascading effect on the steel industry.
The finance ministry should have waited for some time before increasing the export duty and should have allowed the steel industry to recover from the global economic meltdown,” he added.
The Steel Minister, Mr Virbhadra Singh had earlier in a letter to the Finance Minister, Mr Pranab Mukherjee demanded 10 per cent export duty on all grades of iron ore.
India currently is third largest exporter of iron ore in the world after Australia and Brazi.
Source: PTI/The Hindu Business Line
Coal India, Rio Tinto May Soon Discuss Tie-up
State owned Coal India Limited (CIL), which is in the race for acquisition of overseas coal properties to plug the demand supply shortfall of the dry fuel in the domestic market, would negotiate with a few global mining majors including Rio Tinto in January 2010.
CIL has already held talks with some global mining players this month for a strategic alliance and would negotiate with a few more mining giants including Rio Tinto in January, said a source close to the development.
The nature of the strategic partnership with the global mining players would depend on the final outcome of the talks. CIL was open to picking up equity in the foreign mines or operate those mines jointly with the owners.
When contacted by Business Standard, a top CIL official said, “CIL has received a very good response to its global expressions of interest from the global mining players. We would negotiate with a couple of these firms in January.”
He, however, refused to divulge the names of these players. CIL is understood to have started negotiations with a few international coal miners like Peabody Energy (Australia), Massey Energy (USA) and Murray Energy, also based out of USA. These mining companies had given presentations to CIL.
The domestic coal major invited Expressions of Interest (EOI) from global mining firms in July this year for selection of strategic business partners in Australia, US, Indonesia and South Africa for undertaking joint business initiatives in coal mining.
As many as 52 global mining firms had evinced interest in forging a partnership and 12 of them were shortlisted by CIL. Coal India had also constituted a high-level committee to work out the modalities of the tie-up with these overseas coal firms.
Sources said, CIL aimed to seal the deal with a couple of these mining firms before the end of this fiscal.
CIL with a cash reserve of around Rs 30,000 crore was looking to expand overseas by forging partnerships with global mining giants.
It may be noted that in March this year, CIL was awarded two exploratory coal blocks- A1 and A2 in Tete province of Mozambique having an estimated reserve of one billon tonnes.
CIL is in negotiations with the Mozambique government for carrying out exploration work on the two coal blocks.
The mining activity on these two coal blocks, spread over 224 sq km, was set to commence after three years.
CIL has also formed a special purpose vehicle called International Coal Ventures Limited (ICVL) with four other state run firms- NTPC, SAIL, NMDC and RINL for acquisition of overseas coal assets.
The race for acquisition of overseas coal assets was gaining momentum in view of the burgeoning coal demand in India.
The domestic coal demand was projected at 730 million tonnes (mt) by 2011-12 but domestic coal production was pegged at 520 mt by then, thereby creating a shortfall of over 200 mt.
Source: Business Standard
CIL has already held talks with some global mining players this month for a strategic alliance and would negotiate with a few more mining giants including Rio Tinto in January, said a source close to the development.
The nature of the strategic partnership with the global mining players would depend on the final outcome of the talks. CIL was open to picking up equity in the foreign mines or operate those mines jointly with the owners.
When contacted by Business Standard, a top CIL official said, “CIL has received a very good response to its global expressions of interest from the global mining players. We would negotiate with a couple of these firms in January.”
He, however, refused to divulge the names of these players. CIL is understood to have started negotiations with a few international coal miners like Peabody Energy (Australia), Massey Energy (USA) and Murray Energy, also based out of USA. These mining companies had given presentations to CIL.
The domestic coal major invited Expressions of Interest (EOI) from global mining firms in July this year for selection of strategic business partners in Australia, US, Indonesia and South Africa for undertaking joint business initiatives in coal mining.
As many as 52 global mining firms had evinced interest in forging a partnership and 12 of them were shortlisted by CIL. Coal India had also constituted a high-level committee to work out the modalities of the tie-up with these overseas coal firms.
Sources said, CIL aimed to seal the deal with a couple of these mining firms before the end of this fiscal.
CIL with a cash reserve of around Rs 30,000 crore was looking to expand overseas by forging partnerships with global mining giants.
It may be noted that in March this year, CIL was awarded two exploratory coal blocks- A1 and A2 in Tete province of Mozambique having an estimated reserve of one billon tonnes.
CIL is in negotiations with the Mozambique government for carrying out exploration work on the two coal blocks.
The mining activity on these two coal blocks, spread over 224 sq km, was set to commence after three years.
CIL has also formed a special purpose vehicle called International Coal Ventures Limited (ICVL) with four other state run firms- NTPC, SAIL, NMDC and RINL for acquisition of overseas coal assets.
The race for acquisition of overseas coal assets was gaining momentum in view of the burgeoning coal demand in India.
The domestic coal demand was projected at 730 million tonnes (mt) by 2011-12 but domestic coal production was pegged at 520 mt by then, thereby creating a shortfall of over 200 mt.
Source: Business Standard
Friday, December 25, 2009
Coking Coal Prices Set To Rise
The price of coking coal, one of the key raw materials for steel production, is likely to increase by 10-15% in next April, the month in
which majority of steel makers sign long-term agreement with suppliers, said senior executives of two large steel companies.
This, in turn, would increase the production cost and may adversely affect the bottom-line of steel producers unless they pass on the incremental cost to the consumers, said a senior executive of a leading steel maker.
There are couple of reasons for the price rise, said JSW Steel joint managing director Seshagiri Rao. “Due to economic crisis of 2008, many mines in Australia, which are dominant in coking coal, have shut down. This has resulted in sharp decline in supply of coking coal in comparison to early 2007,” he said. Domestic steel producers largely import coking coal from Australia.
In addition to the supply constraint, demand for coking coal from China, which was so far going slow on steel production, has again picked up, Rao said.
Due to the global economic slowdown, coking coal prices (long term and spot) had come down to less than half in April 2009 in comparison to the previous year. In April 2009, domestic steel makers had entered into long term agreement with overseas suppliers for coking coal at around $130 per tonne as against $300 per tonne in the previous year.
The spot price for the coking coal have come down to $180/tonne from a high of $400/tonne in April 2008. Spot prices of coking coal have, however, again started moving up.
As a result, steel producers such as Steel Authority of India (Sail), Tata Steel and JSW may land up signing long term agreements for coking coal at around $145-150 per tonne in April when these long term agreements will come for renewal.
“Indications show that there could be a marginal hike in long-term contracts’ prices for coking coal next year. The prices hike will also bridge the vast gap between long term and spot market prices,” said a senior SAIL executive. India’s largest steel maker Sail consumes 10 million tonne of coking coal every year and is largely dependant on Australia and the US for imports.
JSW Steel consumed 4.5 million tonne of coking coal this year and the requirement will further go up to 5 million tonne next year.
Source: Ecomonic Times
which majority of steel makers sign long-term agreement with suppliers, said senior executives of two large steel companies.
This, in turn, would increase the production cost and may adversely affect the bottom-line of steel producers unless they pass on the incremental cost to the consumers, said a senior executive of a leading steel maker.
There are couple of reasons for the price rise, said JSW Steel joint managing director Seshagiri Rao. “Due to economic crisis of 2008, many mines in Australia, which are dominant in coking coal, have shut down. This has resulted in sharp decline in supply of coking coal in comparison to early 2007,” he said. Domestic steel producers largely import coking coal from Australia.
In addition to the supply constraint, demand for coking coal from China, which was so far going slow on steel production, has again picked up, Rao said.
Due to the global economic slowdown, coking coal prices (long term and spot) had come down to less than half in April 2009 in comparison to the previous year. In April 2009, domestic steel makers had entered into long term agreement with overseas suppliers for coking coal at around $130 per tonne as against $300 per tonne in the previous year.
The spot price for the coking coal have come down to $180/tonne from a high of $400/tonne in April 2008. Spot prices of coking coal have, however, again started moving up.
As a result, steel producers such as Steel Authority of India (Sail), Tata Steel and JSW may land up signing long term agreements for coking coal at around $145-150 per tonne in April when these long term agreements will come for renewal.
“Indications show that there could be a marginal hike in long-term contracts’ prices for coking coal next year. The prices hike will also bridge the vast gap between long term and spot market prices,” said a senior SAIL executive. India’s largest steel maker Sail consumes 10 million tonne of coking coal every year and is largely dependant on Australia and the US for imports.
JSW Steel consumed 4.5 million tonne of coking coal this year and the requirement will further go up to 5 million tonne next year.
Source: Ecomonic Times
Coal India Wins Mozambique Coal Slots
Mozambique has awarded two coal acreages in its Maotize region with an estimated one billion tonne reserves to Coal India Ltd but has yet to nominate the local entity which will partner the Indian state-run firm for prospecting and subsequent mining, the Cabinet was informed earlier this month.
According to government sources, CIL has to form a joint venture with a local partner who will be identified by that country's government for the concessions, identified as A1 and A2. CIL and its local partner will later have to shed 15% equity in the joint venture in favour of the Mozambique government, which cannot be brought down below 10%. Mozambique has also asked CIL to open an office in the national capital Maputo and train manpower.
For Block A1, CIL will make a refundable deposit of $2.1 million and pay $950,000 during the first five years of exploration phase and $15.25 million after five years during the mining phase. For Block A2, CIL will make a refundable deposit of $620,000, $330,000 in the exploration phase and over $5 million after five years.
CIL had won the blocks against nine other bidders. While one bid each from the UK and China were disqualified, there were three bids each from Portugal and Mozambique besides four from India. Block A1 covers an area of 109 sq km and Block A2 115 million. From preliminary studies, CIL reckons about 20% of the deposits to be coking coal and the remaining is expected to be good for using as fuel in power plants.
CIL is aiming to ensure a committed volume of around 20-30 million tonnes of coal from overseas which will be equal to about 50 million tonnes of domestic production. CIL has a cash pile of $6-7 billion. Since it can fund its future domestic expansion from internal accruals, it wants to use part of this reserve in getting equity in overseas mines.
CIL is also processing a plan for firming strategic partnerships with global majors and has shortlisted 12 firms, including Peabody of the US and Indonesia's Bumi. Some eight companies have made their presentations earlier this month. Four more are to make their proposals shortly.
One of the models that CIL is looking at could be that Coal India takes 10-15% equity in a producing mine or upto 25% in expanded capacity of an existing mine. In return, it will get captive right on a certain quantity of production. For CIL, such a partnership will ensure long-term volumes to bridge domestic supply gap and help it to cushion against price volatility.
The company had to import 59 million tonnes of coal when prices were at their peak of $60-65 per tonne of thermal coal. It will also help the company to achieve capacity targets quickly as expansion in India is hampered by the fact that most coal-bearing areas are inhabited and entail massive relief and rehabilitation of population.
Source: Times Of India
According to government sources, CIL has to form a joint venture with a local partner who will be identified by that country's government for the concessions, identified as A1 and A2. CIL and its local partner will later have to shed 15% equity in the joint venture in favour of the Mozambique government, which cannot be brought down below 10%. Mozambique has also asked CIL to open an office in the national capital Maputo and train manpower.
For Block A1, CIL will make a refundable deposit of $2.1 million and pay $950,000 during the first five years of exploration phase and $15.25 million after five years during the mining phase. For Block A2, CIL will make a refundable deposit of $620,000, $330,000 in the exploration phase and over $5 million after five years.
CIL had won the blocks against nine other bidders. While one bid each from the UK and China were disqualified, there were three bids each from Portugal and Mozambique besides four from India. Block A1 covers an area of 109 sq km and Block A2 115 million. From preliminary studies, CIL reckons about 20% of the deposits to be coking coal and the remaining is expected to be good for using as fuel in power plants.
CIL is aiming to ensure a committed volume of around 20-30 million tonnes of coal from overseas which will be equal to about 50 million tonnes of domestic production. CIL has a cash pile of $6-7 billion. Since it can fund its future domestic expansion from internal accruals, it wants to use part of this reserve in getting equity in overseas mines.
CIL is also processing a plan for firming strategic partnerships with global majors and has shortlisted 12 firms, including Peabody of the US and Indonesia's Bumi. Some eight companies have made their presentations earlier this month. Four more are to make their proposals shortly.
One of the models that CIL is looking at could be that Coal India takes 10-15% equity in a producing mine or upto 25% in expanded capacity of an existing mine. In return, it will get captive right on a certain quantity of production. For CIL, such a partnership will ensure long-term volumes to bridge domestic supply gap and help it to cushion against price volatility.
The company had to import 59 million tonnes of coal when prices were at their peak of $60-65 per tonne of thermal coal. It will also help the company to achieve capacity targets quickly as expansion in India is hampered by the fact that most coal-bearing areas are inhabited and entail massive relief and rehabilitation of population.
Source: Times Of India
Indian Steel Ministry Seeks More Say On Mine Licences
The Steel Ministry has sought absolute powers from the government on grant of mining rights for iron ore and other minerals to steel firms, a request that would, if granted, expedite projects, including that of Posco and ArcelorMittal, which are stuck for want of secure raw material supply.
"...All matters pertaining to exercise of powers on behalf of the Central Government in respect of iron ore, manganese ore and chrome ore should be delegated to the Ministry of Steel," Steel Secretary Atul Chaturvedi said in a letter to the Cabinet Secretary K M Chandrasekhar.
Under the existing rules, grant of mineral concession for all minerals, including iron, manganese and chrome ores, rests with the ministry of mines, which gives final approval to the recommendations of the state government.
"...I would request you to make necessary amendments in the GoI (Allocation of Business) Rules, 1961 to make provision for exercise of the powers of the Central Government by Ministry of Steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore," Chaturvedi wrote.
However, such a move may deepen the rift between the steel and the mines ministries, that differ over matters related to iron ore export and grant of leases among others.
When contacted Mines Secretary Santha Sheela Nair said, "We have not received any formal communication on it and as and when required we will send a reply to the Cabinet Secretary. If he is looking after the interest of his ministry, I will protect the interest of my ministry."
Source: Business Standard
"...All matters pertaining to exercise of powers on behalf of the Central Government in respect of iron ore, manganese ore and chrome ore should be delegated to the Ministry of Steel," Steel Secretary Atul Chaturvedi said in a letter to the Cabinet Secretary K M Chandrasekhar.
Under the existing rules, grant of mineral concession for all minerals, including iron, manganese and chrome ores, rests with the ministry of mines, which gives final approval to the recommendations of the state government.
"...I would request you to make necessary amendments in the GoI (Allocation of Business) Rules, 1961 to make provision for exercise of the powers of the Central Government by Ministry of Steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore," Chaturvedi wrote.
However, such a move may deepen the rift between the steel and the mines ministries, that differ over matters related to iron ore export and grant of leases among others.
When contacted Mines Secretary Santha Sheela Nair said, "We have not received any formal communication on it and as and when required we will send a reply to the Cabinet Secretary. If he is looking after the interest of his ministry, I will protect the interest of my ministry."
Source: Business Standard
Thursday, December 24, 2009
Output Down At Zaporozhye Ferroalloys Plant
During 11 months of 2009, Zaporozhye Ferroalloys Plant in Ukraine reduced its silicomanganese output by 54.6% to 102,400 tonnes, ferrosilicon (in recalculation to 45%) by 40.9% to 34,300 tonnes, ferromanganese by 46% to 47,500 tonnes. Production of metallic manganese increased by 58.1% to 13,600 tonnes.
In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.
The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.
Source: Steel Guru
In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.
The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.
Source: Steel Guru
London Mining To Finance Saudi Iron Ore Project
A bankable feasibility study (BFS) on the Wadi Sawawin iron-ore project in Saudi Arabia has indicated that the operation would be feasible at either five-million tons or ten-million tons a year, London Mining said on Wednesday.
Financing for the mining will get under way next year, and is expected to be in place by the end of 2010, the firm said.
UK-based London Mining owns 50% of the project through its interest in the Saudi London Iron joint venture, with the Saudi Arabian National Mining Company.
"The results of the BFS have been presented to the Ministry Of Petroleum and Mines in Jeddah, who continue to be supportive of the project," the company said in a statement.
The Wadi Sawawin project will supply direct reduction pellets for use in the direct-reduced-iron steel plants that account for 90% of steel production in the Middle East and North Africa.
The location of the project is expected to create a competitive advantage over Brazilian and European supply through reduced freight rates from its deep water port in the Red Sea and access to low cost Saudi Arabian oil.
The project also forms part of Saudi Arabia's efforts to diversify its economy.
The BFS assessed two potential scenarios for the project, producing either five-million or 10-million tons a year.
"The project has been shown to be technically and economically sound, scalable with a large resource base and possesses areas of strategic and competitive advantage over alternative sources of DR pellet supply due to market proximity and competitive operating costs," said London CEO Graeme Hossie.
Mining and primary crushing will take place at the mine site, after which ore will be transported 52 km by road to a beneficiation and pelletising plant on the coast, adjacent to the proposed deep-water port and related power and desalination facilities.
Capital for the five-million scenario is estimated at $2-billion, comprising $184-million for the mine and ore transportation, $399-million for processing, filtering and tailings, $246-million for pelletising and $556-million for port, power, desalination plant and other infrastructure.
The balance of the expenditure is for construction, engineering, procurement and construction management services, owners costs, design allowance and contingencies.
In this scenario, the operating cost is estimated at $47,44 per dry metric ton of pellets.
The current Jorc resource will be enough for a mine life of 14-years at a run rate of five-million tons a year, although London expects to add to the resources and confirm a 20-year mine life early in 2010.
If the company were to decide on a ten-million ton a year operation, the total capital expenditure would rise to $3,2-billion, the company said.
The Saudi London Iron joint venture is holding discussions with the Saudi Binladin Group regarding financing and offtake arrangements, London confirmed.
Standard Chartered, Milbank Tweed and Al Sawaf have been engaged to advise on the financing process and the joint venture expects to raise financing to build the project through a combination of funding from local sources, commercial debt and the provision of offtake arrangements in exchange for an equity stake.
The minimum leverage achievable is expected to be 60%, London said.
The next milestone for the project is the completion of an updated resource estimate in the first quarter of 2010.
Once financing is in place construction is anticipated to take 27 months, with commissioning currently targeted for the second quarter of 2013.
Source: Mining Weekly
Financing for the mining will get under way next year, and is expected to be in place by the end of 2010, the firm said.
UK-based London Mining owns 50% of the project through its interest in the Saudi London Iron joint venture, with the Saudi Arabian National Mining Company.
"The results of the BFS have been presented to the Ministry Of Petroleum and Mines in Jeddah, who continue to be supportive of the project," the company said in a statement.
The Wadi Sawawin project will supply direct reduction pellets for use in the direct-reduced-iron steel plants that account for 90% of steel production in the Middle East and North Africa.
The location of the project is expected to create a competitive advantage over Brazilian and European supply through reduced freight rates from its deep water port in the Red Sea and access to low cost Saudi Arabian oil.
The project also forms part of Saudi Arabia's efforts to diversify its economy.
The BFS assessed two potential scenarios for the project, producing either five-million or 10-million tons a year.
"The project has been shown to be technically and economically sound, scalable with a large resource base and possesses areas of strategic and competitive advantage over alternative sources of DR pellet supply due to market proximity and competitive operating costs," said London CEO Graeme Hossie.
Mining and primary crushing will take place at the mine site, after which ore will be transported 52 km by road to a beneficiation and pelletising plant on the coast, adjacent to the proposed deep-water port and related power and desalination facilities.
Capital for the five-million scenario is estimated at $2-billion, comprising $184-million for the mine and ore transportation, $399-million for processing, filtering and tailings, $246-million for pelletising and $556-million for port, power, desalination plant and other infrastructure.
The balance of the expenditure is for construction, engineering, procurement and construction management services, owners costs, design allowance and contingencies.
In this scenario, the operating cost is estimated at $47,44 per dry metric ton of pellets.
The current Jorc resource will be enough for a mine life of 14-years at a run rate of five-million tons a year, although London expects to add to the resources and confirm a 20-year mine life early in 2010.
If the company were to decide on a ten-million ton a year operation, the total capital expenditure would rise to $3,2-billion, the company said.
The Saudi London Iron joint venture is holding discussions with the Saudi Binladin Group regarding financing and offtake arrangements, London confirmed.
Standard Chartered, Milbank Tweed and Al Sawaf have been engaged to advise on the financing process and the joint venture expects to raise financing to build the project through a combination of funding from local sources, commercial debt and the provision of offtake arrangements in exchange for an equity stake.
The minimum leverage achievable is expected to be 60%, London said.
The next milestone for the project is the completion of an updated resource estimate in the first quarter of 2010.
Once financing is in place construction is anticipated to take 27 months, with commissioning currently targeted for the second quarter of 2013.
Source: Mining Weekly
Rhodium Seeks Partner For Nigeria Coal Project
Rhodium Ltd has invited prospective coal investors and energy producers to partake in exploiting our vast coal resources located in Lafia Obi coal field in the Nasarawa State of Nigeria.
It said “Our coal deposit has been studied in details and result shows that the ash and moisture contents of the coal are high suggesting good potential for use in the steel industry. The relatively low volatiles and high vitrinite inertinite contents indicate that the coal has an appreciable coking quality.”
Lafia Obi coal is a potential candidate for metallurgical coke making. Nigerian sub bituminous coal has a high calorific value (5,000 to 6,000 calories per gram or 5500 to 6500 air dried), low ash and low sulfur contents, with good storage characteristics. European buyers in Italy and the United Kingdom have started importing Nigerian coal, because its low sulfur content is environmentally acceptable. Nigeria's coal reserves are large, over 2 billion tonnes, of which 650 million tonnes are proven which includes the Lafia Obi Coal Fields.
It added that "Also we currently have for immediate shipments 30,000 tonnes of coking coal and also welcome cooperation for our iron ore, chromite, copper and limestone deposits."
Rhodium Ltd said "Our project has all basic civil infrastructures includes railway, hydropower, communication, hospitals etc and in an area of established mining operations supported by experienced and highly skilled local mining workforce. When considering the high CAPEX requirement for Coal & Iron ore deposits, our projects achieves international competitive advantage through its excellent infrastructure."
Source: Steel Guru
It said “Our coal deposit has been studied in details and result shows that the ash and moisture contents of the coal are high suggesting good potential for use in the steel industry. The relatively low volatiles and high vitrinite inertinite contents indicate that the coal has an appreciable coking quality.”
Lafia Obi coal is a potential candidate for metallurgical coke making. Nigerian sub bituminous coal has a high calorific value (5,000 to 6,000 calories per gram or 5500 to 6500 air dried), low ash and low sulfur contents, with good storage characteristics. European buyers in Italy and the United Kingdom have started importing Nigerian coal, because its low sulfur content is environmentally acceptable. Nigeria's coal reserves are large, over 2 billion tonnes, of which 650 million tonnes are proven which includes the Lafia Obi Coal Fields.
It added that "Also we currently have for immediate shipments 30,000 tonnes of coking coal and also welcome cooperation for our iron ore, chromite, copper and limestone deposits."
Rhodium Ltd said "Our project has all basic civil infrastructures includes railway, hydropower, communication, hospitals etc and in an area of established mining operations supported by experienced and highly skilled local mining workforce. When considering the high CAPEX requirement for Coal & Iron ore deposits, our projects achieves international competitive advantage through its excellent infrastructure."
Source: Steel Guru
BHP Sells Philippine Nickel Stake
Global miner BHP Billiton has pulled out of a $US2 billion ($2.3 billion) nickel project in the southern Philippines, selling its 40 per cent stake to a local partner.
The project was BHP's only mining venture in the Southeast Asian country and the move could be part of the miner's plan to exit the nickel business as early as next year after selling two major nickel divisions in four months.
In a statement, BHP said it signed a sales agreement for the stake with Asiaticus Management Corp of the Philippines, which is controlled by Filipino businessman Peter Tan and already owns 60 per cent of the undeveloped nickel mining and processing project in the southern Mindanao region.
BHP and Asiaticus had been at odds over when to start commercial production. Asiaticus pushed to begin as soon as possible, while BHP wanted to wait until 2015 at the earliest, Environment and Natural Resources Secretary Lito Atienza said.
In 2007, the Philippine government announced that BHP would invest up to $US2 billion in the country.
The mine is estimated to have 200 million tonnes of nickel ore reserves with 1.3 per cent nickel.
BHP had spent about $US3 million on exploration, according to government data.
"The BHP people have assured us, though, that they are definitely going to stay in the Philippines and continue their interest of developing some of the natural resources we have," Atienza added.
BHP declined to give commercial details of the sale.
BHP last month signed a joint venture agreement with state-run PNOC-Exploration to develop the West Balabac offshore oil in the Palawan Basin, with BHP taking a 75 per cent interest.
The Philippines is targeting its mining sector, one of the world's largest and most profitable in the early 1970s, to attract up to $US14.5 billion in investments by 2013.
But only around $US2.4 billion has flowed in since 2004 due to communist insurgencies, disputes with local communities and partners and opposition from the Catholic Church.
Since backing out of its Gag Island nickel joint venture with Indonesia's PT Antam Tbk 13 months ago, BHP has sent mixed signals about nickel.
The company still produces around a tenth of the world's nickel each year from operations in Australia and Colombia, but earlier this month it agreed to sell its Ravensthorpe laterite nickel project to First Quantum Minerals for $US340 million, and in July it sold its Australian Yabulu refinery to a local mining magnate, signalling that nickel, bought by stainless steel producers for alloying, has less-favoured status in BHP.
Source: The Age
The project was BHP's only mining venture in the Southeast Asian country and the move could be part of the miner's plan to exit the nickel business as early as next year after selling two major nickel divisions in four months.
In a statement, BHP said it signed a sales agreement for the stake with Asiaticus Management Corp of the Philippines, which is controlled by Filipino businessman Peter Tan and already owns 60 per cent of the undeveloped nickel mining and processing project in the southern Mindanao region.
BHP and Asiaticus had been at odds over when to start commercial production. Asiaticus pushed to begin as soon as possible, while BHP wanted to wait until 2015 at the earliest, Environment and Natural Resources Secretary Lito Atienza said.
In 2007, the Philippine government announced that BHP would invest up to $US2 billion in the country.
The mine is estimated to have 200 million tonnes of nickel ore reserves with 1.3 per cent nickel.
BHP had spent about $US3 million on exploration, according to government data.
"The BHP people have assured us, though, that they are definitely going to stay in the Philippines and continue their interest of developing some of the natural resources we have," Atienza added.
BHP declined to give commercial details of the sale.
BHP last month signed a joint venture agreement with state-run PNOC-Exploration to develop the West Balabac offshore oil in the Palawan Basin, with BHP taking a 75 per cent interest.
The Philippines is targeting its mining sector, one of the world's largest and most profitable in the early 1970s, to attract up to $US14.5 billion in investments by 2013.
But only around $US2.4 billion has flowed in since 2004 due to communist insurgencies, disputes with local communities and partners and opposition from the Catholic Church.
Since backing out of its Gag Island nickel joint venture with Indonesia's PT Antam Tbk 13 months ago, BHP has sent mixed signals about nickel.
The company still produces around a tenth of the world's nickel each year from operations in Australia and Colombia, but earlier this month it agreed to sell its Ravensthorpe laterite nickel project to First Quantum Minerals for $US340 million, and in July it sold its Australian Yabulu refinery to a local mining magnate, signalling that nickel, bought by stainless steel producers for alloying, has less-favoured status in BHP.
Source: The Age
Tuesday, December 22, 2009
High Spot Prices Fuel Benchmark Price Hike Speculation
The annual iron ore benchmark talks for fiscal 2010 are coming and spot iron ore prices have hit a record high. But some investment banks have raised their forecast increase on the long-term iron ore contract price for next year owing to the robust demand from China and other regions in the world.
On December 20th 2009, the spot price for iron ore with 62% Fe content soared to USD 107.40 per tonne including freight rate, about 47% higher than the benchmark for fiscal 2009 touched on by Rio Tinto and Japanese steel makers.
Though the benchmark will be certainly lower than the spot market price for iron ore, the top three miners will have more confidence in the annual talks as the spot price keeps on climbing.
Mr Jim Lennon a Macquarie analysts said that Australian benchmark iron ore prices might rise by 30%, comparing with their previous estimate for a 10% gain in annual talk for fiscal 2010. He also predicted that the spot iron ore price may rise continuously during the following several months to USD 120 to USD 130 per tonne based on strong recovery beyond China.
JP Morgan also foresaw that benchmark iron ore price would climb up by 20% for fiscal 2010 and by 30% and 10% for fiscal 2011 and 2012 respectively.
Source: MySteel/Steel Guru
On December 20th 2009, the spot price for iron ore with 62% Fe content soared to USD 107.40 per tonne including freight rate, about 47% higher than the benchmark for fiscal 2009 touched on by Rio Tinto and Japanese steel makers.
Though the benchmark will be certainly lower than the spot market price for iron ore, the top three miners will have more confidence in the annual talks as the spot price keeps on climbing.
Mr Jim Lennon a Macquarie analysts said that Australian benchmark iron ore prices might rise by 30%, comparing with their previous estimate for a 10% gain in annual talk for fiscal 2010. He also predicted that the spot iron ore price may rise continuously during the following several months to USD 120 to USD 130 per tonne based on strong recovery beyond China.
JP Morgan also foresaw that benchmark iron ore price would climb up by 20% for fiscal 2010 and by 30% and 10% for fiscal 2011 and 2012 respectively.
Source: MySteel/Steel Guru
Coal Queue At Newcastle Longest For Two Years
The queue of coal ships waiting at Australia’s Newcastle port, the world’s biggest export harbour for the fuel, stretched to its longest in more than two years as exports slowed for a second week.
Sixty ships, waiting to load 4.2 million tons of coal, were outside the harbour at 7 a.m. local time yesterday, up from 52 vessels a week earlier, Newcastle Port Corp. said on its Web site. The queue is the longest since July 2007.
The volume exported last week fell 1.1 percent to 1.91 million metric tons, after slipping 0.1 percent the week before. Coal ships queued for an average 13.2 days, up from 11.7 days the week before, the port said. The waiting time compared with 0.1 days for general-cargo vessels.
Power-station coal prices at Newcastle, a benchmark for Asia, rose 1.5 percent to $81.06 a ton for the week ended Dec. 18, the first gain in four weeks, according to the globalCOAL NEWC Index.
Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship coal through the harbour.
SourcE: Bloomberg
Sixty ships, waiting to load 4.2 million tons of coal, were outside the harbour at 7 a.m. local time yesterday, up from 52 vessels a week earlier, Newcastle Port Corp. said on its Web site. The queue is the longest since July 2007.
The volume exported last week fell 1.1 percent to 1.91 million metric tons, after slipping 0.1 percent the week before. Coal ships queued for an average 13.2 days, up from 11.7 days the week before, the port said. The waiting time compared with 0.1 days for general-cargo vessels.
Power-station coal prices at Newcastle, a benchmark for Asia, rose 1.5 percent to $81.06 a ton for the week ended Dec. 18, the first gain in four weeks, according to the globalCOAL NEWC Index.
Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship coal through the harbour.
SourcE: Bloomberg
Monday, December 21, 2009
Nava Bharat Signs Zambia Coal Deal
Shares in Nava Bharat Ventures surged on the BSE this morning, after the company's overseas unit Nava Bharat Singapore signed a pact with The Republic of Zambia for acquiring 65% stake in Maamba Collieries for a consideration of $26 million.
The company announced acquisition before trading hours today, 21 December 2009.
Meanwhile, the BSE Sensex was down 68.43 points, or 0.41%, to 16,651.40.
On BSE, 11,228 shares were traded in the counter as against an average daily volume of 18,365 shares in the past one quarter.
The stock hit a high of Rs 392.70 and a low of Rs 383.15 so far during the day. The stock had hit a 52-week high of Rs 442.90 on 25 August 2009 and a 52-week low of Rs 98.20 on 29 January 2009.
The mid-cap stock had underperformed the market over the past one month till 18 December 2009, falling 3.1% as compared to the Sensex's 1.64% fall. It had outperformed the market in the past one quarter, rising 3.85% as compared to the Sensex's decline of 0.13%.
The company's equity capital is Rs 15.19 crore. Face value per share is Rs 2.
The current price of Rs 392.30 discounts the company's Q2 September 2009 annualized EPS of Rs 63.22, by a PE multiple of 6.21.
The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued for inducting a private majority partner.
Nava Bharat Ventures' net profit rose 1.2% to Rs 120.03 crore on 39.5% fall in net sales to Rs 240.94 crore in Q2 September 2009 over Q2 September 2008.
Nava Bharat Ventures manufactures ferro alloys which are utilized by the steel industry. The company also generates & distributes power and manufactures sugar
Source: India Info-online
The company announced acquisition before trading hours today, 21 December 2009.
Meanwhile, the BSE Sensex was down 68.43 points, or 0.41%, to 16,651.40.
On BSE, 11,228 shares were traded in the counter as against an average daily volume of 18,365 shares in the past one quarter.
The stock hit a high of Rs 392.70 and a low of Rs 383.15 so far during the day. The stock had hit a 52-week high of Rs 442.90 on 25 August 2009 and a 52-week low of Rs 98.20 on 29 January 2009.
The mid-cap stock had underperformed the market over the past one month till 18 December 2009, falling 3.1% as compared to the Sensex's 1.64% fall. It had outperformed the market in the past one quarter, rising 3.85% as compared to the Sensex's decline of 0.13%.
The company's equity capital is Rs 15.19 crore. Face value per share is Rs 2.
The current price of Rs 392.30 discounts the company's Q2 September 2009 annualized EPS of Rs 63.22, by a PE multiple of 6.21.
The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued for inducting a private majority partner.
Nava Bharat Ventures' net profit rose 1.2% to Rs 120.03 crore on 39.5% fall in net sales to Rs 240.94 crore in Q2 September 2009 over Q2 September 2008.
Nava Bharat Ventures manufactures ferro alloys which are utilized by the steel industry. The company also generates & distributes power and manufactures sugar
Source: India Info-online
Bangladesh To Remove Bhutan Steel, Ferroalloy Tariffs
The Financial Express Bangladesh reports that the Bangladesh government is going to withdraw the entire import duty from 18 major exportable products from Bhutan to boost bilateral trade with the neighbouring country.
As per the report, the South Asian department of the foreign ministry has urged the NBR to take necessary steps to withdraw import duty from the import items following a commitment by Prime Minister Ms Sheikh Hasina during her recent visit to the country.
Mr Nasir Uddin Ahmed chairman of National Board of Revenue said “We will issue an order in this connection after getting directive from the finance minister.”
Presently, the NBR imposes a flat 15% customs duty on import of Bhutanese products.
The items include all kinds of mineral waters, boulders, dolomite, gypsum, limestone, calcium carbonate, ferrosilicon, billets, semi finished products of iron or non-alloy steel.
Source: Steel Guru
As per the report, the South Asian department of the foreign ministry has urged the NBR to take necessary steps to withdraw import duty from the import items following a commitment by Prime Minister Ms Sheikh Hasina during her recent visit to the country.
Mr Nasir Uddin Ahmed chairman of National Board of Revenue said “We will issue an order in this connection after getting directive from the finance minister.”
Presently, the NBR imposes a flat 15% customs duty on import of Bhutanese products.
The items include all kinds of mineral waters, boulders, dolomite, gypsum, limestone, calcium carbonate, ferrosilicon, billets, semi finished products of iron or non-alloy steel.
Source: Steel Guru
Sunday, December 20, 2009
Chadormalo Increases Iron Ore Concentrate Production
Chadormalo iron ore concentrate production increased 9 percent during the period from the beginning of this year by the end of the 8th month of this year comparing to production plans.
According to the Public Relations of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 5,619,771 tons of iron ore concentrate has been produced by Chadormalo Mineral and Industrial Complex during the said period while the predicted weight was 5,147,000 tons.
674,081 tons of iron ore concentrate has been produced in the 8th month of this year by this complex which showed some 6 percent (636,000 tons) increase comparing to the production plans.
More over more than 930,000 tons of pellet and some 752,000 tons of granule iron ore have been produced in Chadormalo Mineral and Industrial Complex during the first 8 months of this year.
According to this report the produced pellet of the complex in the 8th month reached to more than 200,000 tons and the produced granule iron ore of the complex reached to some 96,000 tons.
Source: ME Steel
According to the Public Relations of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 5,619,771 tons of iron ore concentrate has been produced by Chadormalo Mineral and Industrial Complex during the said period while the predicted weight was 5,147,000 tons.
674,081 tons of iron ore concentrate has been produced in the 8th month of this year by this complex which showed some 6 percent (636,000 tons) increase comparing to the production plans.
More over more than 930,000 tons of pellet and some 752,000 tons of granule iron ore have been produced in Chadormalo Mineral and Industrial Complex during the first 8 months of this year.
According to this report the produced pellet of the complex in the 8th month reached to more than 200,000 tons and the produced granule iron ore of the complex reached to some 96,000 tons.
Source: ME Steel
Ennore Coke Close To Acquiring Australian Coke Mine
The Financial Express has reported that Ennore Coke Limited is close to acquiring the Broughton coking coal mines in Australia, becoming the country's second met coke company after Gujarat NRE to have overseas coking coal assets.
Mr Ganesan Natarajan president & CEO of Ennore Coke said that the company is asked a price of USD 12 million for taking over 90% stake in Australia's Broughton coal mines having estimated reserves of 30 million tonne.
He added that "Although at one point of time we thought that the valuation would further drop to around USD 7 to USD 8 million, finally it has been valued at USD 15 million."
The process of stake acquisition is expected to be completed by July next year. Rio Tinto, the global mining giant, which was also in the race, finally backed out and paved Ennore's way for acquisition, he added.
Mr Natarajan said that the Haldia unit, which is currently expanding its capacity from 150,000 tonnes per annum to 300,000 tonnes per annum at an investment of INR 80 crore, would also require an additional 200,000 tonnes of coking coal above its present 600,000 tonnes requirement.
Source: Steel Guru/Financial Express
Mr Ganesan Natarajan president & CEO of Ennore Coke said that the company is asked a price of USD 12 million for taking over 90% stake in Australia's Broughton coal mines having estimated reserves of 30 million tonne.
He added that "Although at one point of time we thought that the valuation would further drop to around USD 7 to USD 8 million, finally it has been valued at USD 15 million."
The process of stake acquisition is expected to be completed by July next year. Rio Tinto, the global mining giant, which was also in the race, finally backed out and paved Ennore's way for acquisition, he added.
Mr Natarajan said that the Haldia unit, which is currently expanding its capacity from 150,000 tonnes per annum to 300,000 tonnes per annum at an investment of INR 80 crore, would also require an additional 200,000 tonnes of coking coal above its present 600,000 tonnes requirement.
Source: Steel Guru/Financial Express
Turkish Ferroalloy Imports Fall In October
According to customs statistics compiled by the Turkish Statistical Institute in October 2009, Turkey imported 17,800 tonnes of ferroalloys decreasing its imports of the products in question by 44.2% as compared to September.
In October the country's ferromanganese imports declined by 84.38% reaching 939 tonnes, ferrosilicon imports totalled 4,046 tonnes decreasing by 44.33% while ferrosilicomanganese imports amounted to 11,712 tonnes down 34.77% all compared to September.
Source: Steel Guru
In October the country's ferromanganese imports declined by 84.38% reaching 939 tonnes, ferrosilicon imports totalled 4,046 tonnes decreasing by 44.33% while ferrosilicomanganese imports amounted to 11,712 tonnes down 34.77% all compared to September.
Source: Steel Guru
Saturday, December 19, 2009
Montana Land Board To Vote On Coal Reserve
The Montana Land Board is to vote Monday on whether to put up for lease a half-billion-ton coal reserve near the Wyoming border — a politically charged decision for Gov. Brian Schweitzer and the four other Democrats who make up the panel.
Coal royalties and other revenues from a new mine would boost the state's cash-strapped coffers by hundreds of millions of dollars in coming decades. That means Democrats would be exposed to charges of economic obstructionism if they vote "no."
But a Land Board vote to move forward could spark a backlash from environmentalists who supported the Democrats in last year's election. Mining the state-owned reserve would lead to the release of an estimated 1 billion tons of greenhouse gases when the coal is burned.
In five years in office, Schweitzer has cultivated an image as a progressive Democrat keen on developing Montana's vast coal resources — the largest in the nation. He says it can be done in a way that balances economic development with climate change, but Monday's decision could put that to test.
Fourteen Republican state lawmakers sent a letter to Land Board members this week dismissing worries over global warming as rhetoric that could stifle progress.
On Friday, 22 Democratic lawmakers shot back with their own letter to the board, saying the GOP claims ignored reality.
After grappling with the issue for years, the board in November put off a decision for another month to seek public comment. Officials including Secretary of State Linda McCulloch, who sought the latest delay, said Friday that the time for a vote had come.
"There's going to be a vote," McCulloch said. "There's a lot of sides to this. Number one, we have to fund the schools. There are jobs, good-paying jobs associated with this. There's also issues about renewable resources and stewardship of the land."
Neither McCulloch nor other members would reveal Friday how they plan to vote.
Composed of the state's top five elected officials, the board manages state-owned real estate and is charged with maximizing revenue.
The state's coal tracts are intertwined with an estimated 731 million tons of the fuel Great Northern Properties leased last month to Arch Coal Inc. of St. Louis.
Combined, the state and private property contains more coal than the United States burns annually. The coal reserve is next to the Northern Cheyenne Indian Reservation, where support for mining has been mixed.
Schweitzer — a vocal proponent of coal development — said Friday that his support for leasing depends on whether the price offered for the coal is high enough.
Environmentalists who backed his 2008 re-election worry that calculus could ignore the costs of climate change and, more locally, the industrialization of the rural Otter Creek valley south of Ashland.
Backers of mining say the question before the Land Board is much narrower: Does leasing the coal make economic sense?
A decision to move forward on leasing could potentially end more than a decade of hand-wringing over the coal tracts.
Once owned by the federal government, the state's reserves were promised to Montana by the Clinton administration as part of a 1996 deal that pre-empted construction of a contentious gold mine next to Yellowstone National Park.
Under pressure from environmentalists, Clinton's interior secretary, Bruce Babbitt, later tried to back out of the deal. He cited "the potential for environmental disruption" if the coal were developed. The transfer finally took place in April 2002, under President George W. Bush.
Since Schweitzer took office in 2005, the state has moved steadily in sizing up the potential for Otter Creek — if not always quickly enough for development proponents.
The delay has allowed Schweitzer to promote his ambitious energy development agenda while largely steering clear of the growing drive by environmentalists to halt the mining and use of coal.
Even if the Land Board moves forward to seek lease bids, it would not seal the deal on Otter Creek.
The panel still would need to strike a lease agreement, and the chosen developer would need to sink an estimated $1 billion into a mine and a new railroad needed to move the fuel to power plants in the Midwest.
Source: AP
Coal royalties and other revenues from a new mine would boost the state's cash-strapped coffers by hundreds of millions of dollars in coming decades. That means Democrats would be exposed to charges of economic obstructionism if they vote "no."
But a Land Board vote to move forward could spark a backlash from environmentalists who supported the Democrats in last year's election. Mining the state-owned reserve would lead to the release of an estimated 1 billion tons of greenhouse gases when the coal is burned.
In five years in office, Schweitzer has cultivated an image as a progressive Democrat keen on developing Montana's vast coal resources — the largest in the nation. He says it can be done in a way that balances economic development with climate change, but Monday's decision could put that to test.
Fourteen Republican state lawmakers sent a letter to Land Board members this week dismissing worries over global warming as rhetoric that could stifle progress.
On Friday, 22 Democratic lawmakers shot back with their own letter to the board, saying the GOP claims ignored reality.
After grappling with the issue for years, the board in November put off a decision for another month to seek public comment. Officials including Secretary of State Linda McCulloch, who sought the latest delay, said Friday that the time for a vote had come.
"There's going to be a vote," McCulloch said. "There's a lot of sides to this. Number one, we have to fund the schools. There are jobs, good-paying jobs associated with this. There's also issues about renewable resources and stewardship of the land."
Neither McCulloch nor other members would reveal Friday how they plan to vote.
Composed of the state's top five elected officials, the board manages state-owned real estate and is charged with maximizing revenue.
The state's coal tracts are intertwined with an estimated 731 million tons of the fuel Great Northern Properties leased last month to Arch Coal Inc. of St. Louis.
Combined, the state and private property contains more coal than the United States burns annually. The coal reserve is next to the Northern Cheyenne Indian Reservation, where support for mining has been mixed.
Schweitzer — a vocal proponent of coal development — said Friday that his support for leasing depends on whether the price offered for the coal is high enough.
Environmentalists who backed his 2008 re-election worry that calculus could ignore the costs of climate change and, more locally, the industrialization of the rural Otter Creek valley south of Ashland.
Backers of mining say the question before the Land Board is much narrower: Does leasing the coal make economic sense?
A decision to move forward on leasing could potentially end more than a decade of hand-wringing over the coal tracts.
Once owned by the federal government, the state's reserves were promised to Montana by the Clinton administration as part of a 1996 deal that pre-empted construction of a contentious gold mine next to Yellowstone National Park.
Under pressure from environmentalists, Clinton's interior secretary, Bruce Babbitt, later tried to back out of the deal. He cited "the potential for environmental disruption" if the coal were developed. The transfer finally took place in April 2002, under President George W. Bush.
Since Schweitzer took office in 2005, the state has moved steadily in sizing up the potential for Otter Creek — if not always quickly enough for development proponents.
The delay has allowed Schweitzer to promote his ambitious energy development agenda while largely steering clear of the growing drive by environmentalists to halt the mining and use of coal.
Even if the Land Board moves forward to seek lease bids, it would not seal the deal on Otter Creek.
The panel still would need to strike a lease agreement, and the chosen developer would need to sink an estimated $1 billion into a mine and a new railroad needed to move the fuel to power plants in the Midwest.
Source: AP
China Paying $107 Per Tonne For Iron Ore
Prices for the iron ore China is importing jumped this month to $107 per dry metric ton, the highest import price in a year, according to The Steel Index, which tracks the delivered price of 62% ferrous-content fines. If iron ore prices remain inflated in early 2010, the cost pressures could become a major driver of higher Asian steel prices next year-which, in turn, could influence global steel prices upward.
Worldwide steel production is creeping up from early 2009 lows as the global economy slowly comes back to life, writes analyst Gavin Wood at Nomura International, but the revival of such raw material supplies as iron ore may not respond quickly enough, particularly in the face of an insatiable China. "Chinese demand for raw materials is pushing prices higher and we think next year steel prices will have to move up as producers pass on the rising raw material costs," Wood says.
The Steel Index iron ore reference price has been erratic all year, falling to $59 last March, peaking in excess of $100 in August, falling back to $76 in September, and now climbing to $107. A Reuters news report says the current price is 30% above the contract prices of 2009.
In a new report, Steven Randall, managing director of The Steel Index, says the volatility and rising spot price "creates a challenging background" for the imminent iron ore benchmark price discussions between the Chinese steel mills and Australian and Brazilian miners for next year's deliveries. At current freight rates, the spot price is some 45%-50% higher than the fixed-contract price agreed between the Japanese steel mills and the miners in mid-2009. As has been reported, no agreement on a benchmark iron ore contract price was reached with the Chinese steel industry in 2009 although mills there have been buying on spot for several months.
Looking ahead, UBS Securities, JP Morgan Securities and Goldman Sachs JBWere have predicted a 20% rise in Asian iron ore costs in 2010, which is higher than previous forecasts. Macquarie Bank now is predicting a 30% increase.
Steel makers around the world are restarting blast furnaces shuttered as demand dived during the global economic slowdown. "This movement by steel makers is boosting ex-China demand for iron ore and causing the iron ore market to become tighter earlier than we expected," write JP Morgan analysts in a research note.
Source: Purchasing.com
Worldwide steel production is creeping up from early 2009 lows as the global economy slowly comes back to life, writes analyst Gavin Wood at Nomura International, but the revival of such raw material supplies as iron ore may not respond quickly enough, particularly in the face of an insatiable China. "Chinese demand for raw materials is pushing prices higher and we think next year steel prices will have to move up as producers pass on the rising raw material costs," Wood says.
The Steel Index iron ore reference price has been erratic all year, falling to $59 last March, peaking in excess of $100 in August, falling back to $76 in September, and now climbing to $107. A Reuters news report says the current price is 30% above the contract prices of 2009.
In a new report, Steven Randall, managing director of The Steel Index, says the volatility and rising spot price "creates a challenging background" for the imminent iron ore benchmark price discussions between the Chinese steel mills and Australian and Brazilian miners for next year's deliveries. At current freight rates, the spot price is some 45%-50% higher than the fixed-contract price agreed between the Japanese steel mills and the miners in mid-2009. As has been reported, no agreement on a benchmark iron ore contract price was reached with the Chinese steel industry in 2009 although mills there have been buying on spot for several months.
Looking ahead, UBS Securities, JP Morgan Securities and Goldman Sachs JBWere have predicted a 20% rise in Asian iron ore costs in 2010, which is higher than previous forecasts. Macquarie Bank now is predicting a 30% increase.
Steel makers around the world are restarting blast furnaces shuttered as demand dived during the global economic slowdown. "This movement by steel makers is boosting ex-China demand for iron ore and causing the iron ore market to become tighter earlier than we expected," write JP Morgan analysts in a research note.
Source: Purchasing.com
Friday, December 18, 2009
China Iron Ore Inventories Up This Week
Iron ore inventories at China's major ports rose by 830,000 tonnes this week to end at 66.75 million tonnes, industry consultancy Mysteel said on Friday.
Stockpiles of ore originating from Brazil increased by 180,000 tonnes to 19.1 million tonnes, while Indian ore was up by 830,000 tonnes at 13.18 million tonnes.
Australian ore inventories fell by 480,000 tonnes to end at 21.95 million tonnes by the end of the week.
While domestic ore prices remained steady, the average price of imported iron ore increased 2.3 percent this week, according to Mysteel figures. Prices are 25.8 percent higher than December 2008.
On Thursday, Indian ore with 63.5 percent iron content was selling at 790-800 yuan at Shandong port, up almost 4 percent from a week ago, while Brazilian 65 percent ore cost 850-860 yuan, up 1 percent.
Traders said domestic steel mills had been replenishing stocks in preparation for an increase in prices in 2010.
In a note this week, Royal Bank of Scotland analysts said iron ore supplies would likely be stretched next year, largely as a consequence of growing Chinese demand.
They predicted that contract prices would likely rise by as much as 20 percent in 2010, revising their forecast up from the previous 10 percent.
Source: MySteel/Alibaba
Stockpiles of ore originating from Brazil increased by 180,000 tonnes to 19.1 million tonnes, while Indian ore was up by 830,000 tonnes at 13.18 million tonnes.
Australian ore inventories fell by 480,000 tonnes to end at 21.95 million tonnes by the end of the week.
While domestic ore prices remained steady, the average price of imported iron ore increased 2.3 percent this week, according to Mysteel figures. Prices are 25.8 percent higher than December 2008.
On Thursday, Indian ore with 63.5 percent iron content was selling at 790-800 yuan at Shandong port, up almost 4 percent from a week ago, while Brazilian 65 percent ore cost 850-860 yuan, up 1 percent.
Traders said domestic steel mills had been replenishing stocks in preparation for an increase in prices in 2010.
In a note this week, Royal Bank of Scotland analysts said iron ore supplies would likely be stretched next year, largely as a consequence of growing Chinese demand.
They predicted that contract prices would likely rise by as much as 20 percent in 2010, revising their forecast up from the previous 10 percent.
Source: MySteel/Alibaba
Queensland Thermal Coal Project Moves Step Forward
A proposal for Australia's largest thermal coal project in Queensland's central west has taken a step forward.
Hancock Prospecting is proposing two mines at Alpha and Kevin's Corner in the Galilee Basin and a 500 kilometre rail line to port facilities.
The company's chairman, Gina Rinehart, has today met Premier Anna Bligh to discuss the plans.
The Government has declared the coal rail corridor an infrastructure facility of significance and confirmed it will be able to use Abbott Point.
Ms Bligh says that means Hancock can now move forward with a bankable feasibility study.
If it is approved, the projects will create the biggest thermal coal mine complex in Australia and employ thousands of workers.
Ms Rinehart says now the Government has provided certainty about rail and port infrastructure, a Hancock Coal head office will be established in Brisbane.
Source: ABC Australia
Hancock Prospecting is proposing two mines at Alpha and Kevin's Corner in the Galilee Basin and a 500 kilometre rail line to port facilities.
The company's chairman, Gina Rinehart, has today met Premier Anna Bligh to discuss the plans.
The Government has declared the coal rail corridor an infrastructure facility of significance and confirmed it will be able to use Abbott Point.
Ms Bligh says that means Hancock can now move forward with a bankable feasibility study.
If it is approved, the projects will create the biggest thermal coal mine complex in Australia and employ thousands of workers.
Ms Rinehart says now the Government has provided certainty about rail and port infrastructure, a Hancock Coal head office will be established in Brisbane.
Source: ABC Australia
JFE Steel To Buy Stake In Queensland Coal Mine
JFE Steel said on Thursday it would spend more than $US550 million ($A610.64 million) to buy a stake in an Australian coal mine as Japan vies with fast-growing emerging nations for a steady supply of raw materials.
JFE Steel Corp announced it would acquire a 20 per cent interest in the Byerwen Coal project from QCoal Pty Ltd. The mine, in Queensland, is expected to start production in 2012.
The two companies also agreed to a long-term supply deal for JFE Steel to receive coal from the project.
JFE, Japan's second-largest steel maker, said its total investment would be Y50 billion ($A617.97 million), including spending related to the mine's facilities.
The group said it aimed to get the project operating "as soon as possible in order to secure its own stable supply of good-quality coking coal over the long term and help stabilise the world's coking coal market".
Japan's steel makers have been seeking stable sources of raw materials by buying stakes in mines as the country jostles with other regional economies such as China and India for commodity supplies.
Anglo-Australian mining giant Rio Tinto said Thursday it had secured its first-ever iron ore sale to India, calling it a "ground-breaking" development.
Source: Sydney Morning Herald
JFE Steel Corp announced it would acquire a 20 per cent interest in the Byerwen Coal project from QCoal Pty Ltd. The mine, in Queensland, is expected to start production in 2012.
The two companies also agreed to a long-term supply deal for JFE Steel to receive coal from the project.
JFE, Japan's second-largest steel maker, said its total investment would be Y50 billion ($A617.97 million), including spending related to the mine's facilities.
The group said it aimed to get the project operating "as soon as possible in order to secure its own stable supply of good-quality coking coal over the long term and help stabilise the world's coking coal market".
Japan's steel makers have been seeking stable sources of raw materials by buying stakes in mines as the country jostles with other regional economies such as China and India for commodity supplies.
Anglo-Australian mining giant Rio Tinto said Thursday it had secured its first-ever iron ore sale to India, calling it a "ground-breaking" development.
Source: Sydney Morning Herald
Thursday, December 17, 2009
Alaska Sees Increase In Coal Exports
Alaska’s coal exports to the Pacific have jumped following a two-year slump, according to the state’s sole producer.
The company, Usibelli Coal Mine, is optimistic exports could stay strong despite international efforts to regulate fossil fuel use.
Usibelli’s coal exports, which normally account for about one-third of its production, almost tripled from 2007 to 2009, according to Steve Denton, a company vice president. Shipments to Asia and Chile should be near 817,000 tons this year, more than the previous two years combined, Denton estimated Wednesday night during a panel discussion on Alaska’s coal industry.
The presentation drew roughly 50 people to the Noel Wien Library. Some questioned Alaska coal’s prospects given domestic and international efforts to reduce carbon emissions and state and federal subsidies for alternative energy. Coal still stands as one of the cheapest sources of power around, and Denton indicated the company expects international coal markets to hold strong in the long run.
The United States relies heavily on coal power, less so even than China and developing countries, and Alaska sits as a major potential supplier. The state’s estimated 5 trillion tons of undeveloped coal reserves could account for more than 10 percent of the world’s supply.
“It’s pretty hard to see the end of coal as a resource,” Denton said.
The discussion’s question-and-answer segment resembled broader debate about power production’s environmental and economic impacts. Usibelli’s export figures come as nations seek cuts to greenhouse gas emissions, pollution blamed in part on coal-fed power in developing countries. Interior Alaska still relies partly on coal power, and Fairbanks’ electric utility plans soon to restart a 50-megawatt experimental coal plant near Usibelli’s Healy mine.
But the state also is seeking more renewable power, and Gov. Sean Parnell on Monday proposed depositing $25 million in a fund for renewable energy grants. State lawmakers are separately weighing a proposed “emerging energy technology fund.”
Denton said various factors could make Alaska coal attractive to international buyers. Shipping costs across the Pacific Ocean fell last year, he said, making it cheaper to sell coal overseas and increasing profit at home.
“When price goes down on shipping, it’s generally good for us,” Denton said.
Rajive Ganguli, a mining engineer at the University of Alaska Fairbanks, said much of Alaska’s coal reserves hold relatively low sulfur and mercury levels, making it environmentally cleaner than coal from many regions.
Usibelli produces roughly 1.5 million tons of coal per year. The bulk goes either to cogeneration power plants, which produce both electricity and feed underground district heating networks, or is exported.
Wednesday’s discussion was part of a monthly lecture series sponsored by the Alaska Center for Energy and Power.
Source: Fairbanks Daily News
The company, Usibelli Coal Mine, is optimistic exports could stay strong despite international efforts to regulate fossil fuel use.
Usibelli’s coal exports, which normally account for about one-third of its production, almost tripled from 2007 to 2009, according to Steve Denton, a company vice president. Shipments to Asia and Chile should be near 817,000 tons this year, more than the previous two years combined, Denton estimated Wednesday night during a panel discussion on Alaska’s coal industry.
The presentation drew roughly 50 people to the Noel Wien Library. Some questioned Alaska coal’s prospects given domestic and international efforts to reduce carbon emissions and state and federal subsidies for alternative energy. Coal still stands as one of the cheapest sources of power around, and Denton indicated the company expects international coal markets to hold strong in the long run.
The United States relies heavily on coal power, less so even than China and developing countries, and Alaska sits as a major potential supplier. The state’s estimated 5 trillion tons of undeveloped coal reserves could account for more than 10 percent of the world’s supply.
“It’s pretty hard to see the end of coal as a resource,” Denton said.
The discussion’s question-and-answer segment resembled broader debate about power production’s environmental and economic impacts. Usibelli’s export figures come as nations seek cuts to greenhouse gas emissions, pollution blamed in part on coal-fed power in developing countries. Interior Alaska still relies partly on coal power, and Fairbanks’ electric utility plans soon to restart a 50-megawatt experimental coal plant near Usibelli’s Healy mine.
But the state also is seeking more renewable power, and Gov. Sean Parnell on Monday proposed depositing $25 million in a fund for renewable energy grants. State lawmakers are separately weighing a proposed “emerging energy technology fund.”
Denton said various factors could make Alaska coal attractive to international buyers. Shipping costs across the Pacific Ocean fell last year, he said, making it cheaper to sell coal overseas and increasing profit at home.
“When price goes down on shipping, it’s generally good for us,” Denton said.
Rajive Ganguli, a mining engineer at the University of Alaska Fairbanks, said much of Alaska’s coal reserves hold relatively low sulfur and mercury levels, making it environmentally cleaner than coal from many regions.
Usibelli produces roughly 1.5 million tons of coal per year. The bulk goes either to cogeneration power plants, which produce both electricity and feed underground district heating networks, or is exported.
Wednesday’s discussion was part of a monthly lecture series sponsored by the Alaska Center for Energy and Power.
Source: Fairbanks Daily News
Baosteel - Iron Ore Prices Unlikely To Rise Next Year
Baosteel Group Corporation (Baosteel) raised January 2010 steel prices December 10, 2009. After the price adjustment, the main product prices of Baosteel have basically returned to their high level in 2009. The action was followed by Wuhan Iron and Steel (Group) Corp. (WISCO), Anshan Iron and Steel Group and other enterprises increasing their steel prices.
Ma Guoqiang, general manager of Baosteel, said December 15, 2009 that next year in terms of steel demand and the overall price, the situation will be greatly improved compared to this year, but the overcapacity issue will remain. He also said that the world's major steel enterprises' financial situation is still not optimistic this year, and this means that the iron ore price is unlikely to rise next year.
Next year's domestic production capacity may surpass 600 million tons
Ma expected that thanks to the 4 trillion yuan economic stimulus plan, as well as investment demand in real estate and infrastructure, this year the domestic steel production capacity could reached 5.7 million tons. Judging by the just-concluded Central Economic Work Conference, next year proactive fiscal policy and moderate loose monetary policy will be continued. The national crude steel output in 2010 could reach more than 600 million tons.
He also said next year China's economic growth will rely more on domestic demand and growth in investment will be less than this year. Based on this premise, combined with reduction in vehicle purchasing tax and the possibility of continuing the home appliances to the countryside policy, the outlook for steel demand is optimistic.
Furthermore, as urbanization continues to advance, the demand for steel will be diversified, which will generate a new round of domestic steel demand. Relatively speaking, with the cooling down in investment in infrastructure, construction steel demand growth will slow in 2010.
Ma also said the situation of overcapacity will be more prominent in the next year. In his view, eliminating backward production capacity will need to rely on economic measures, but the key is to strictly enforce environmental regulations, making those iron and steel enterprises with high pollution and high energy consumption lose their cost advantage.
Ma Guoqiang said at Baosteel there will be no increase in production capacity next year, and they will continue adjusting the product structure in accordance with national requirements.
"Due to the constraints of anti-dumping by foreign countries, while China has large production capacity, the price of seamless steel pipe products in 2010 is not optimistic."
"Baosteel next year will insist on differentiation strategies and produce the relative cost-competitive products that other domestic steel mills can not produce," Ma said.
Ma said the iron ore market is a global market, so it directly relates to global supply and demand. From a global perspective, the financial situation of some iron and steel enterprises in 2009 is very difficult, and a considerable number of enterprises suffered losses or meager profits, insufficient to support the price rise of iron ore next year.
However, according to a report from ratings agency the Fitch Ratings Corporates Group, China's steel output recovery is pushing up the prices of raw materials, and the agency expects prices of raw materials to increase 15 percent -20 percent in 2010 than in 2009. Since the end of 2008, downstream operating costs of the steel company which are self-sufficiency in raw materials may have been reduced. These companies will make profits when capacity utilization rate is more than 75 percent.
Source: People's Daily
Ma Guoqiang, general manager of Baosteel, said December 15, 2009 that next year in terms of steel demand and the overall price, the situation will be greatly improved compared to this year, but the overcapacity issue will remain. He also said that the world's major steel enterprises' financial situation is still not optimistic this year, and this means that the iron ore price is unlikely to rise next year.
Next year's domestic production capacity may surpass 600 million tons
Ma expected that thanks to the 4 trillion yuan economic stimulus plan, as well as investment demand in real estate and infrastructure, this year the domestic steel production capacity could reached 5.7 million tons. Judging by the just-concluded Central Economic Work Conference, next year proactive fiscal policy and moderate loose monetary policy will be continued. The national crude steel output in 2010 could reach more than 600 million tons.
He also said next year China's economic growth will rely more on domestic demand and growth in investment will be less than this year. Based on this premise, combined with reduction in vehicle purchasing tax and the possibility of continuing the home appliances to the countryside policy, the outlook for steel demand is optimistic.
Furthermore, as urbanization continues to advance, the demand for steel will be diversified, which will generate a new round of domestic steel demand. Relatively speaking, with the cooling down in investment in infrastructure, construction steel demand growth will slow in 2010.
Ma also said the situation of overcapacity will be more prominent in the next year. In his view, eliminating backward production capacity will need to rely on economic measures, but the key is to strictly enforce environmental regulations, making those iron and steel enterprises with high pollution and high energy consumption lose their cost advantage.
Ma Guoqiang said at Baosteel there will be no increase in production capacity next year, and they will continue adjusting the product structure in accordance with national requirements.
"Due to the constraints of anti-dumping by foreign countries, while China has large production capacity, the price of seamless steel pipe products in 2010 is not optimistic."
"Baosteel next year will insist on differentiation strategies and produce the relative cost-competitive products that other domestic steel mills can not produce," Ma said.
Ma said the iron ore market is a global market, so it directly relates to global supply and demand. From a global perspective, the financial situation of some iron and steel enterprises in 2009 is very difficult, and a considerable number of enterprises suffered losses or meager profits, insufficient to support the price rise of iron ore next year.
However, according to a report from ratings agency the Fitch Ratings Corporates Group, China's steel output recovery is pushing up the prices of raw materials, and the agency expects prices of raw materials to increase 15 percent -20 percent in 2010 than in 2009. Since the end of 2008, downstream operating costs of the steel company which are self-sufficiency in raw materials may have been reduced. These companies will make profits when capacity utilization rate is more than 75 percent.
Source: People's Daily
Vale Offers China Freight Discounts
BRAZILIAN miner Vale has offered freight discounts for iron ore shipments to Chinese steel mills, according to an executive with a Chinese steel trading house and consultancy and a China Daily report.
Vale has offered to fix freight charges for Chinese mills at $US25 ($27.87) a tonne for a two-year contract, or $US24/tonne for a four-year contract, said the executive, who has close ties to both the mining and steelmaking industries.
If the offer has actually been made, Vale is seeking to eliminate a key advantage enjoyed by its Anglo-Australian rivals Rio Tinto and BHP Billiton that has given rise in the past to differing price settlements for Brazilian and Australian benchmark iron ore. Chinese buyers paid more for Australian ore in the 2008 contract because Australian miners argued that their lower shipping costs, compared with Brazilian freight, justified a premium for Australian ore. The executive said he didn't know whether any Chinese mills had signed, but the China Daily report that "some Chinese companies are believed to have signed".
Source: The Australian
Vale has offered to fix freight charges for Chinese mills at $US25 ($27.87) a tonne for a two-year contract, or $US24/tonne for a four-year contract, said the executive, who has close ties to both the mining and steelmaking industries.
If the offer has actually been made, Vale is seeking to eliminate a key advantage enjoyed by its Anglo-Australian rivals Rio Tinto and BHP Billiton that has given rise in the past to differing price settlements for Brazilian and Australian benchmark iron ore. Chinese buyers paid more for Australian ore in the 2008 contract because Australian miners argued that their lower shipping costs, compared with Brazilian freight, justified a premium for Australian ore. The executive said he didn't know whether any Chinese mills had signed, but the China Daily report that "some Chinese companies are believed to have signed".
Source: The Australian
Bhushan Steel To Raise Prices In Jan
Domestic steel firm Bhushan Steel on Wednesday said it will increase prices of its products by up to Rs 1,500 a tonne next month to cash in on the uptick in demand.
"There is going to be a price increase of our flat and long steel products from January onwards may be in the range of Rs 1,000-1,500 a tonne. ...From January, the demand will definitely pick up," Bhushan Steel Managing Director Neeraj Singal told reporters here.
Flat steel products are primarily used by the white goods and auto industry while the long products are used in the construction industry.
The firm had lowered prices of its products a few months back along with its peers in the industry amid threats of cheap imports. The price range of the cut could not be immediately ascertained.
"The prices had gone to unexpectedly low levels in the last two-three months so it has to come to a realistic level again. From January the demand will definitely pick up," Singal said.
The country's largest steel producer SAIL is also planning to increase steel prices in January. The move is expected to be followed by other steel producers as well.
Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of over capacity in Chinese steel mills and import threat.
Source: Economic Times
"There is going to be a price increase of our flat and long steel products from January onwards may be in the range of Rs 1,000-1,500 a tonne. ...From January, the demand will definitely pick up," Bhushan Steel Managing Director Neeraj Singal told reporters here.
Flat steel products are primarily used by the white goods and auto industry while the long products are used in the construction industry.
The firm had lowered prices of its products a few months back along with its peers in the industry amid threats of cheap imports. The price range of the cut could not be immediately ascertained.
"The prices had gone to unexpectedly low levels in the last two-three months so it has to come to a realistic level again. From January the demand will definitely pick up," Singal said.
The country's largest steel producer SAIL is also planning to increase steel prices in January. The move is expected to be followed by other steel producers as well.
Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of over capacity in Chinese steel mills and import threat.
Source: Economic Times
Iron Ore Holdings In Deal With Rio Tinto
KERRY Stokes' 52 per cent-owned iron ore junior, Iron Ore Holdings, is set to come out of a trading halt after reaching an agreement giving Rio Tinto six months to negotiate the acquisition of IOH's flagship Iron Valley iron ore deposit in the Pilbara.
IOH is also expected to announce it has secured an iron ore sales agreement with Rio covering its more advanced but much smaller Phil's Creek project, helping it become a 1.5 million tonne-a-year producer next year.
The expected agreements follow from the November 24 announcement that the pair were talking about the possible acquisition by Rio of the 190 million-tonne Iron Valley deposit, one that Rio is keen to complete to demonstrate its credentials as a ''friend'' of Pilbara iron ore juniors.
Rio's resistance, and that of the other big Pilbara iron ore operator, BHP Billiton, to junior companies accessing their Pilbara rail and port infrastructure to develop stranded iron ore deposits has come under attack..
Source: Sydney Morning Herald
IOH is also expected to announce it has secured an iron ore sales agreement with Rio covering its more advanced but much smaller Phil's Creek project, helping it become a 1.5 million tonne-a-year producer next year.
The expected agreements follow from the November 24 announcement that the pair were talking about the possible acquisition by Rio of the 190 million-tonne Iron Valley deposit, one that Rio is keen to complete to demonstrate its credentials as a ''friend'' of Pilbara iron ore juniors.
Rio's resistance, and that of the other big Pilbara iron ore operator, BHP Billiton, to junior companies accessing their Pilbara rail and port infrastructure to develop stranded iron ore deposits has come under attack..
Source: Sydney Morning Herald
Wednesday, December 16, 2009
Vale Signs Independent Iron Ore Contracts With Chinese Steel Mills
Brazilian mining company Vale SA has signed independent ore contracts with Chinese steel mills for fixed freight charges to further expand its presence in the mainland, ahead of next year's benchmark iron ore pricing negotiations.
Some Chinese companies are believed to have signed three to four year price contracts with Vale for fixed freight charges which are 20 to 30 percent lower than normal rates, said an executive with a State-owned steelmaker.
Vale is also believed to be bringing forward a series of plans like output expansion, a new distribution center and the construction of 16 large ore carriers to reduce transportation costs between China and Brazil. The executive, however, refused to disclose any further details on grounds of confidentiality.
Vale's distribution center for the 400,000-ton ships may be established at Qingdao. The port has already started work on four 400,000-ton terminals, the first of which is likely to be completed by the end of next year, according to Chinese newspaper National Business Daily.
Unlike BHP and Rio, which ship ore from Australia, Vale needs to transport iron ore from Brazil, resulting in much higher freight costs.
Freight costs from Brazil to China were around $35 per ton yesterday, while the spot price of Brazilian iron ore was 850-860 yuan ($125) per ton.
To help reduce transportation costs, Vale plans to build the 16 huge carriers that are expected to trim costs by 30 percent compared to other small ships.
"The move underscores the interdependence between Vale and China," said Yu Liangui, senior analyst from consultancy firm Mysteel. "As a long-term strategy, Vale needs to stabilize its exports by reducing transportation costs to grab more market share in China from its rivals Rio Tinto and BHP Billiton."
Jiangsu Rongsheng Heavy Industries Group, a shipbuilder based in eastern China, will build 12 of the carriers for Vale by the end of 2010 or the beginning of 2011, local media reported.
Macquarie Group Ltd and JPMorgan Chase & Co have raised their forecast for annual iron ore contract prices after a surge in demand from China.
Australian benchmark iron ore prices may rise 30 percent, Macquarie analysts led by London-based Jim Lennon said yesterday in a report. That compares with their previous estimate for a 10 percent gain, according to media reports.
China increased iron ore imports by 12 percent last month to cater to the rising demand from makers of cars and appliances, it said.
Iron-ore demand from the United States and European steelmakers will also increase next year, the Brazilian company said recently.
Source: China Daily
Some Chinese companies are believed to have signed three to four year price contracts with Vale for fixed freight charges which are 20 to 30 percent lower than normal rates, said an executive with a State-owned steelmaker.
Vale is also believed to be bringing forward a series of plans like output expansion, a new distribution center and the construction of 16 large ore carriers to reduce transportation costs between China and Brazil. The executive, however, refused to disclose any further details on grounds of confidentiality.
Vale's distribution center for the 400,000-ton ships may be established at Qingdao. The port has already started work on four 400,000-ton terminals, the first of which is likely to be completed by the end of next year, according to Chinese newspaper National Business Daily.
Unlike BHP and Rio, which ship ore from Australia, Vale needs to transport iron ore from Brazil, resulting in much higher freight costs.
Freight costs from Brazil to China were around $35 per ton yesterday, while the spot price of Brazilian iron ore was 850-860 yuan ($125) per ton.
To help reduce transportation costs, Vale plans to build the 16 huge carriers that are expected to trim costs by 30 percent compared to other small ships.
"The move underscores the interdependence between Vale and China," said Yu Liangui, senior analyst from consultancy firm Mysteel. "As a long-term strategy, Vale needs to stabilize its exports by reducing transportation costs to grab more market share in China from its rivals Rio Tinto and BHP Billiton."
Jiangsu Rongsheng Heavy Industries Group, a shipbuilder based in eastern China, will build 12 of the carriers for Vale by the end of 2010 or the beginning of 2011, local media reported.
Macquarie Group Ltd and JPMorgan Chase & Co have raised their forecast for annual iron ore contract prices after a surge in demand from China.
Australian benchmark iron ore prices may rise 30 percent, Macquarie analysts led by London-based Jim Lennon said yesterday in a report. That compares with their previous estimate for a 10 percent gain, according to media reports.
China increased iron ore imports by 12 percent last month to cater to the rising demand from makers of cars and appliances, it said.
Iron-ore demand from the United States and European steelmakers will also increase next year, the Brazilian company said recently.
Source: China Daily
Walter Energy Starts Production
Coal producer Walter Energy said Tuesday it has started production at one of its mines and expects to produce two million tons next year.
The new production comes from a $175 million expansion that will increase Walter Energy's rated capacity for premium coking coal to approximately 9.5 million tons in 2012.
Walter Energy, which is based in Tampa, Fla., produces and exports coal for the global steel industry. Company stock increased $1.30, or 1.8 percent, to $74.78 a share in Tuesday trading.
Source: Business Week
The new production comes from a $175 million expansion that will increase Walter Energy's rated capacity for premium coking coal to approximately 9.5 million tons in 2012.
Walter Energy, which is based in Tampa, Fla., produces and exports coal for the global steel industry. Company stock increased $1.30, or 1.8 percent, to $74.78 a share in Tuesday trading.
Source: Business Week
India Has Sufficient Iron Ore Reserves 'For 150 To 200 Years'
Indian Minister of Mines and Minister of Development of the North Eastern Region, Shri B.K. Handique, stated in a written reply in the Indian Council of States today that India has ample resources of iron ore, which can suitably cater to future requirements. India's resources of iron ore are dynamic in nature and are bound to increase with further exploration, he added.
As reported by the Press Information Bureau of the Indian government, the minister said that the total iron ore reserves in the country amount to 7.06 billion metric tons and that the total resources of iron ore were estimated at 25.25 billion metric tons as on April 2005.
According to the same report, the level of steel production and the grade of iron ore, taken for purposes of calculating the resources, are important parameters for determining how many years the iron ore deposits will last. The estimated figures may be from 150 to over 200 years depending on the assumptions made.
Source: Steel Orbis
As reported by the Press Information Bureau of the Indian government, the minister said that the total iron ore reserves in the country amount to 7.06 billion metric tons and that the total resources of iron ore were estimated at 25.25 billion metric tons as on April 2005.
According to the same report, the level of steel production and the grade of iron ore, taken for purposes of calculating the resources, are important parameters for determining how many years the iron ore deposits will last. The estimated figures may be from 150 to over 200 years depending on the assumptions made.
Source: Steel Orbis
Tuesday, December 15, 2009
RTI Mothballs Mississippi Titanium Sponge Plans
RTI International Metals Inc. said it has indefinitely idled plans to build a $300 million titanium sponge plant in Hamilton, Miss. As a result, RTI will incur asset impairment and related charges in the range of $65 million to $75 million, the company said.
In addition, RTI also has entered into two additional long-term titanium sponge-supply agreements with Toho Titanium Co., Ltd. and OSAKA Titanium technologies Co., Ltd., both of Japan.
Dawne S. Hickton, vice chairman, chief executive officer and president, said that “taken together with our existing long-term agreement with OTC, which runs through 2016, these contracts, which commence in 2012 and 2013, will provide to RTI a cost-effective source of titanium sponge from proven suppliers through 2021 with volume flexibility that we believe will adequately support our long-term titanium supply needs.”
With headquarters in Pitts-burgh, RTI has a plant in Weathersfield Township.
Source: Vindy
In addition, RTI also has entered into two additional long-term titanium sponge-supply agreements with Toho Titanium Co., Ltd. and OSAKA Titanium technologies Co., Ltd., both of Japan.
Dawne S. Hickton, vice chairman, chief executive officer and president, said that “taken together with our existing long-term agreement with OTC, which runs through 2016, these contracts, which commence in 2012 and 2013, will provide to RTI a cost-effective source of titanium sponge from proven suppliers through 2021 with volume flexibility that we believe will adequately support our long-term titanium supply needs.”
With headquarters in Pitts-burgh, RTI has a plant in Weathersfield Township.
Source: Vindy
Drilling May Lead To Eureka Mines Re-Opening
A major mining company has plans to re-open mining in about a year in what is described as the richest silver, leaf and zinc deposit in the United States.
Chief Consolidated Mining Co. is drilling core samples in the extension of the old Kennecott Bergin Mine and the Trixie Mine for gold, silver and copper, "to make sure the deposits are there," chairman and chief executive officer Gordon Blankstein said.
Chief owns about 16,000 acres of land, which includes part of Eureka and south and west of the historic mining town on both sides of U.S. 6. Chief is one of the largest landholders in Utah. The company is refurbishing an old mill as part of the return to mining there, Blankstein said. The mill was rebuilt about nine years ago.
"The Bergin is extremely rich," Blankstein said.
Over the years, Kennecott Resources, Sunshine Mining Co. and Chief have drilled more than 100 exploration holes in the district. Current crews are confirming the findings made then. They finished drilling hole No. 1 on Nov. 21 at a depth of 1,721 feet. Samples were sent for assay. A second hole went to 1,700 feet. Crews are also working on a third hole.
In the early years, mining would stop when the miners hit water. Today's miners have better ways of pumping and treating the water to continue mining. It has been studied as a source for potable water for the developing west side of Utah Lake, Blankstein said.
However, the Trixie mine doesn't have water issues, he said.
The company also plans to update a 2001 feasibility study before beginning mining operations in the East Tintic Mining District. Historically, the district has yielded 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 2.2 billion pounds of lead and 1 billion pounds of zinc, Blankstein said.
Andover Ventures of Vancouver, British Columbia, acquired 65 percent of Chief in 2008. Chief has been mining in the district sporadically since 1876.
"If we open a mine there, we will be creating jobs," Blankstein said. "There will be jobs created in the mill and in the underground mines."
Two drilling crews are working there now.
Several years ago, the Environmental Protection Agency mandated environmental cleanup in Eureka from lead residue left from the old days of mining. That work delayed Chief's mining pursuits but is nearing completion, he said.
Source: Deseret News
Chief Consolidated Mining Co. is drilling core samples in the extension of the old Kennecott Bergin Mine and the Trixie Mine for gold, silver and copper, "to make sure the deposits are there," chairman and chief executive officer Gordon Blankstein said.
Chief owns about 16,000 acres of land, which includes part of Eureka and south and west of the historic mining town on both sides of U.S. 6. Chief is one of the largest landholders in Utah. The company is refurbishing an old mill as part of the return to mining there, Blankstein said. The mill was rebuilt about nine years ago.
"The Bergin is extremely rich," Blankstein said.
Over the years, Kennecott Resources, Sunshine Mining Co. and Chief have drilled more than 100 exploration holes in the district. Current crews are confirming the findings made then. They finished drilling hole No. 1 on Nov. 21 at a depth of 1,721 feet. Samples were sent for assay. A second hole went to 1,700 feet. Crews are also working on a third hole.
In the early years, mining would stop when the miners hit water. Today's miners have better ways of pumping and treating the water to continue mining. It has been studied as a source for potable water for the developing west side of Utah Lake, Blankstein said.
However, the Trixie mine doesn't have water issues, he said.
The company also plans to update a 2001 feasibility study before beginning mining operations in the East Tintic Mining District. Historically, the district has yielded 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 2.2 billion pounds of lead and 1 billion pounds of zinc, Blankstein said.
Andover Ventures of Vancouver, British Columbia, acquired 65 percent of Chief in 2008. Chief has been mining in the district sporadically since 1876.
"If we open a mine there, we will be creating jobs," Blankstein said. "There will be jobs created in the mill and in the underground mines."
Two drilling crews are working there now.
Several years ago, the Environmental Protection Agency mandated environmental cleanup in Eureka from lead residue left from the old days of mining. That work delayed Chief's mining pursuits but is nearing completion, he said.
Source: Deseret News
NTPC Coal Worries Unlikely To End Soon
Indian state-owned power producer NTPC’s woes over shortages of coal may not end soon. Though the company is importing 12.5 million tonnes of coal
over the next 12 months, going by the power utility’s requirement, this, too, is likely to fall short and impact generation capability. Also, uncertainty over an increase in coal supplies, from its largest supplier Coal India, could likely compound to the utility’s woes, say people familiar with the development.
NTPC, which has an installed capacity of 30,644 mw, is planning to add 3,300 mw of power in 2009-10 alone. While its current annual requirement of coal totals 150 million tonnes, if its proposed projects are added, the coal requirement would increase by at least 125 million tonnes. NTPC declined to comment on the story.
The state-owned utility is facing an acute shortage of coal as procedural and infrastructural bottlenecks have delayed its captive coal mining plans, while an increased demand globally has inflated the cost of acquisition of coal mines overseas.
NTPC has commissioned a 500-mw unit at Kahalgaon in June 2009 and in the current fiscal, it is expected to commission the 1,320-mw Sipat unit, 500 mw at Korba and 980 mw at Dadri. “By 2012, NTPC’s coal needs will shoot up by at least 125 mt a year,” said a company executive.
Of its annual requirement of 150 million tonnes, Coal India supplies 114.7 million tonnes every year. But the utility isn’t certain about increased supplies from CIL. “In a situation of general shortage, it may not be appropriate to supply coal to any consumer beyond 100% (of its requirement), even if the consumer is NTPC,” CIL chairman Partha Bhattacharyya told ET.
Of the installed capacity, 24,395 mw is generated from NTPC’s coal-fired plants, making coal the most critical fuel for its growth. Lack of coal supply is already costing the company. Though NTPC recorded a 11.6% revenue growth in the quarter ended September 2010, on a quarter-on-quarter basis, its revenue fell 10.2%, due to generation losses at some of its plants, including Farakka and Kahalgaon.
The gross generation for the September quarter was up 7% to 50.4 billion units, but dropped almost 10% sequentially. The Farakka unit requires 35,000 tonnes of coal daily, but gets only about 7,000 tonnes, due to poor coal linkage from the Lalmatia mines in Jharkhand. “The unit runs at an average plant load factor of 67% which is much below NTPC’s average PLF of 87.4%,” said the source. A plant load factor in a power generation utility is a measure of its capacity utilisation.
The Kahalgaon unit also suffers from lack of coal supply. According to a person close to the development, it runs at a PLF of 61.5% on an average.
However, it’s not just the lack of coal that is affecting NTPC’s generation capacity; the quality of coal is equally responsible. “The coal that comes from captive mines are very poor (of ‘F’ and ‘G’ grade), which affects the plants’ performance and also causes boiler tube failure frequently,” said the source.
Coal India chairman, Mr Bhattacharyya, agrees. “Quality of coal in India is intrinsically poor. The only solution lies in setting up large number of washeries for supplying washed coal,” he added. Although, CIL expects washing of coal to significantly improve quality, it may take time.
Also, NTPC’s plans to develop the five mining blocks allotted to it are lagging behind schedule. “Of the five, production from Pakri-Barwadih mine in Jharkhand may start this year, though it was supposed to begin in 2007,” added the NTPC executive.
Source: Economic Times
over the next 12 months, going by the power utility’s requirement, this, too, is likely to fall short and impact generation capability. Also, uncertainty over an increase in coal supplies, from its largest supplier Coal India, could likely compound to the utility’s woes, say people familiar with the development.
NTPC, which has an installed capacity of 30,644 mw, is planning to add 3,300 mw of power in 2009-10 alone. While its current annual requirement of coal totals 150 million tonnes, if its proposed projects are added, the coal requirement would increase by at least 125 million tonnes. NTPC declined to comment on the story.
The state-owned utility is facing an acute shortage of coal as procedural and infrastructural bottlenecks have delayed its captive coal mining plans, while an increased demand globally has inflated the cost of acquisition of coal mines overseas.
NTPC has commissioned a 500-mw unit at Kahalgaon in June 2009 and in the current fiscal, it is expected to commission the 1,320-mw Sipat unit, 500 mw at Korba and 980 mw at Dadri. “By 2012, NTPC’s coal needs will shoot up by at least 125 mt a year,” said a company executive.
Of its annual requirement of 150 million tonnes, Coal India supplies 114.7 million tonnes every year. But the utility isn’t certain about increased supplies from CIL. “In a situation of general shortage, it may not be appropriate to supply coal to any consumer beyond 100% (of its requirement), even if the consumer is NTPC,” CIL chairman Partha Bhattacharyya told ET.
Of the installed capacity, 24,395 mw is generated from NTPC’s coal-fired plants, making coal the most critical fuel for its growth. Lack of coal supply is already costing the company. Though NTPC recorded a 11.6% revenue growth in the quarter ended September 2010, on a quarter-on-quarter basis, its revenue fell 10.2%, due to generation losses at some of its plants, including Farakka and Kahalgaon.
The gross generation for the September quarter was up 7% to 50.4 billion units, but dropped almost 10% sequentially. The Farakka unit requires 35,000 tonnes of coal daily, but gets only about 7,000 tonnes, due to poor coal linkage from the Lalmatia mines in Jharkhand. “The unit runs at an average plant load factor of 67% which is much below NTPC’s average PLF of 87.4%,” said the source. A plant load factor in a power generation utility is a measure of its capacity utilisation.
The Kahalgaon unit also suffers from lack of coal supply. According to a person close to the development, it runs at a PLF of 61.5% on an average.
However, it’s not just the lack of coal that is affecting NTPC’s generation capacity; the quality of coal is equally responsible. “The coal that comes from captive mines are very poor (of ‘F’ and ‘G’ grade), which affects the plants’ performance and also causes boiler tube failure frequently,” said the source.
Coal India chairman, Mr Bhattacharyya, agrees. “Quality of coal in India is intrinsically poor. The only solution lies in setting up large number of washeries for supplying washed coal,” he added. Although, CIL expects washing of coal to significantly improve quality, it may take time.
Also, NTPC’s plans to develop the five mining blocks allotted to it are lagging behind schedule. “Of the five, production from Pakri-Barwadih mine in Jharkhand may start this year, though it was supposed to begin in 2007,” added the NTPC executive.
Source: Economic Times
Monday, December 14, 2009
SAIL Looking To Raise Steel Prices In Jan
After cutting steel prices in the past two months, state-run Steel Authority of India Limited (SAIL) today said it is looking to hike the rates next month following a recovery in demand.
"We may increase steel prices in January as market is improving," Steel Authority of India Limited chairman S K Roongta told PTI.
He, however, did not give any price range of the proposed hike.
The steel maker had reduced prices of its flat steel products by up to Rs 2,000 a tonne in the past two months, mainly on falling international demand.
Flat steel products are primarily used by the white goods and auto industry. SAIL had not altered the prices of its long steel products utilised by construction companies.
The firm had reduced prices of flat steel products by up to Rs 500 per tonne in the first week of this month after cutting the rates by up to Rs 1,500 in the last month.
The price structure of the company generally acts as a benchmark for the domestic steel companies. SAIL offers its products in the range of Rs 29,000-40,000 a tonne.
Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of overcapacity in Chinese steel mills.
Import of cheap steel products had been pushing pressure on the domestic steel players to maintain a low price line.
Source: Business Standard
"We may increase steel prices in January as market is improving," Steel Authority of India Limited chairman S K Roongta told PTI.
He, however, did not give any price range of the proposed hike.
The steel maker had reduced prices of its flat steel products by up to Rs 2,000 a tonne in the past two months, mainly on falling international demand.
Flat steel products are primarily used by the white goods and auto industry. SAIL had not altered the prices of its long steel products utilised by construction companies.
The firm had reduced prices of flat steel products by up to Rs 500 per tonne in the first week of this month after cutting the rates by up to Rs 1,500 in the last month.
The price structure of the company generally acts as a benchmark for the domestic steel companies. SAIL offers its products in the range of Rs 29,000-40,000 a tonne.
Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of overcapacity in Chinese steel mills.
Import of cheap steel products had been pushing pressure on the domestic steel players to maintain a low price line.
Source: Business Standard
Iran Copper Exports Up 60 Per Cent
The National Iranian Copper Industries Company (NICICO) announced that in the first eight months period of the Iranian calendar year (ending November 21) exports of copper from Iran reached 315,706 tons.
The Mehr News Agency reported that this amount of copper was sold for $688.2 million.
In terms of weight, statistics show a 60 percent increase compared to the same period the year before, and in value it is 15 percent more.
Copper excavation in this period by NICICO reached 62 million tons which shows one percent increase in comparison to the previous year.
Global copper prices have had an impressive rally in 2009, benefitting from a rebound in the world economy and strong growth in China, according to dailyfutures.com.
On November 23, 2009, the International Copper Study Group’s (ICSG) preliminary data showed that world copper production fell short of refined usage by 32,000 tons in the first eight months of 2009, compared to a deficit of 117,000 tons the previous year.
So far in 2009, the world refined production is down 1 percent, while refined usage is down 2 percent.
In 2008, the world refined production exceeded consumption by 225,000 tons.
On October 8, 2009, the ICSG predicted that copper will show a world production surplus of 368,000 tons in 2009 and 539,000 tons in 2010. That is up from their April estimate of a 345,000 ton surplus in 2009 and a 400,000 ton surplus in 2010
Source: Tehran Times
The Mehr News Agency reported that this amount of copper was sold for $688.2 million.
In terms of weight, statistics show a 60 percent increase compared to the same period the year before, and in value it is 15 percent more.
Copper excavation in this period by NICICO reached 62 million tons which shows one percent increase in comparison to the previous year.
Global copper prices have had an impressive rally in 2009, benefitting from a rebound in the world economy and strong growth in China, according to dailyfutures.com.
On November 23, 2009, the International Copper Study Group’s (ICSG) preliminary data showed that world copper production fell short of refined usage by 32,000 tons in the first eight months of 2009, compared to a deficit of 117,000 tons the previous year.
So far in 2009, the world refined production is down 1 percent, while refined usage is down 2 percent.
In 2008, the world refined production exceeded consumption by 225,000 tons.
On October 8, 2009, the ICSG predicted that copper will show a world production surplus of 368,000 tons in 2009 and 539,000 tons in 2010. That is up from their April estimate of a 345,000 ton surplus in 2009 and a 400,000 ton surplus in 2010
Source: Tehran Times
Bangladesh To Import LNG, Coal To Run Power Plants
The Bangladeshi Prime Minister's Adviser for Power, Energy and Mineral Resources Dr Tawfiq-e-Elahi Bir Bikram yesterday said that the government was contemplating to import liquefied natural gas (LNG) and coal to install four coal based power plants and five mega gas-fired power plants to reduce electricity crisis in the country.
He told this to reporters at the Zia International Airport prior to departure to UK for participating in a road show in England for foreign direct investment (FDI) in power sector. Nine officials accompanied him to attend the two day long London road show on December 15 to 16.
We face a shortfall of 500MW to 600 MW of electricity everyday due to gas crisis, the adviser said.
"Due to gas crisis, the government is planning to import LNG for electricity generation," he said, adding, "To establish four coal-fired power plants having capacity of 400MW each, the government has also planned to import coal outside the country.
The government has planned to install three combined cycle power plants having capacity of 1125MW, two peaking power plants of 100MW each, 2000MW to 2600MW capacity of imported coal based power plants and renewable energy based power plant having capacity of 110MW, Power Division Secretary Abul Kalam Azad said.
Energy Division Secretary Mohammed Mohsin said that Bangladesh has nine trillion cubic feet of gas proven reserve so far. Our daily demand is about 2,300 mmcfd (million cubic feet) per day.
The government is planning to set up one LNG terminal having capacity to preserve 3.5 million tons LNG.
Executive Chairman of the Board of Investment S A Samad said Bangladesh offers incentives for foreign direct investment.
"We will showcase our better investment climate through the road show in Bangladesh power sector," he said.
Some 80 interested investors, including 25 expatriate Bangladeshis, have registered online to take part in the road show.
The Singapore road show will begin on January 26 next year while the New York road show will start on January 28.
The government will arrange three separate road shows outside the country for power sector development at an estimated cost of Tk 2.16 crore.
The 9-member delegation of London road show include Power Secretary Abul Kalam Azad, Chairmen of the Board of Investment Dr SA Samad, Petrobangla Chairman Prof Hossain Monsoor, Power Development Board Chairman ASM Alamgir Kabir, and Bangladesh Petroleum Corporation, Energy Regulatory Commission Chairman Syed Yusuf Hossain, Deputy governor of Bangladesh Bank, PDB member power generation and PDB member for distribution.
In New York road show, the Board of Investment will invite 75 foreign and local investors while the number of invitees in Singapore will be 60 persons, sources said.
Board of Investment (BoI) of Bangladesh has already invited chambers' leaders of USA, UK, China, Malaysia, Korea, Russia and some others countries, sources said.
Source: The New Nation
He told this to reporters at the Zia International Airport prior to departure to UK for participating in a road show in England for foreign direct investment (FDI) in power sector. Nine officials accompanied him to attend the two day long London road show on December 15 to 16.
We face a shortfall of 500MW to 600 MW of electricity everyday due to gas crisis, the adviser said.
"Due to gas crisis, the government is planning to import LNG for electricity generation," he said, adding, "To establish four coal-fired power plants having capacity of 400MW each, the government has also planned to import coal outside the country.
The government has planned to install three combined cycle power plants having capacity of 1125MW, two peaking power plants of 100MW each, 2000MW to 2600MW capacity of imported coal based power plants and renewable energy based power plant having capacity of 110MW, Power Division Secretary Abul Kalam Azad said.
Energy Division Secretary Mohammed Mohsin said that Bangladesh has nine trillion cubic feet of gas proven reserve so far. Our daily demand is about 2,300 mmcfd (million cubic feet) per day.
The government is planning to set up one LNG terminal having capacity to preserve 3.5 million tons LNG.
Executive Chairman of the Board of Investment S A Samad said Bangladesh offers incentives for foreign direct investment.
"We will showcase our better investment climate through the road show in Bangladesh power sector," he said.
Some 80 interested investors, including 25 expatriate Bangladeshis, have registered online to take part in the road show.
The Singapore road show will begin on January 26 next year while the New York road show will start on January 28.
The government will arrange three separate road shows outside the country for power sector development at an estimated cost of Tk 2.16 crore.
The 9-member delegation of London road show include Power Secretary Abul Kalam Azad, Chairmen of the Board of Investment Dr SA Samad, Petrobangla Chairman Prof Hossain Monsoor, Power Development Board Chairman ASM Alamgir Kabir, and Bangladesh Petroleum Corporation, Energy Regulatory Commission Chairman Syed Yusuf Hossain, Deputy governor of Bangladesh Bank, PDB member power generation and PDB member for distribution.
In New York road show, the Board of Investment will invite 75 foreign and local investors while the number of invitees in Singapore will be 60 persons, sources said.
Board of Investment (BoI) of Bangladesh has already invited chambers' leaders of USA, UK, China, Malaysia, Korea, Russia and some others countries, sources said.
Source: The New Nation
Sunday, December 13, 2009
Billion-Tonne Iron Ore Deposit Found In Hebei
An 1-billion-tonne iron ore deposit was found in northern Hebei Province, official said Saturday.
The 6-km long deposit is 41.43 to 108.95 meters thick on average and lies 100 to 600 meters deep underground, said Zhang Shaolian, head of Hebei Provincial Bureau of Land and Resources.
The deposit, in Hebei's Luannan County, was the largest ever found in China since the 1980s, Zhang said.
In addition to the proved 1.04-billion-tonne iron ore, the deposit has an estimated unproved reserve of 500 million tonnes, Zhang added.
The deposit is shallow and comparatively easy for mining, he said.
The No.1 Geological Exploration Institute of China Metallurgical Geology Bureau, who had been prospecting the area since February 2008, issued a report with details of the deposit including its reserves, Zhang said.
The report was reviewed and approved on Aug. 12 jointly by central and provincial land and resources reserve evaluation authorities, he added.
Source: China.org.cn
The 6-km long deposit is 41.43 to 108.95 meters thick on average and lies 100 to 600 meters deep underground, said Zhang Shaolian, head of Hebei Provincial Bureau of Land and Resources.
The deposit, in Hebei's Luannan County, was the largest ever found in China since the 1980s, Zhang said.
In addition to the proved 1.04-billion-tonne iron ore, the deposit has an estimated unproved reserve of 500 million tonnes, Zhang added.
The deposit is shallow and comparatively easy for mining, he said.
The No.1 Geological Exploration Institute of China Metallurgical Geology Bureau, who had been prospecting the area since February 2008, issued a report with details of the deposit including its reserves, Zhang said.
The report was reviewed and approved on Aug. 12 jointly by central and provincial land and resources reserve evaluation authorities, he added.
Source: China.org.cn
Great Lakes Iron Ore Shipments Hit 2009 High
More iron ore was shipped on the Great Lakes in November than in any other month this year. But the amount was far less than the average amount shipped for the month during 2004-08.
Just more than 4.6 million net tons of ore were shipped last month — 27 percent more than October’s tonnage, according to numbers released Thursday by the Lake Carrier’s Association. Still, November shipments were 6 percent less than last year, and nearly 14 percent below the month’s 2004-08 average.
For the year, the Great Lakes iron ore trade stands at 27.5 million tons, a decrease of 50.1 percent from last year and 49.3 percent less than the five-year average.
In Duluth, 552,430 net tons of iron ore were shipped in November, compared to 983,810 tons last year and a five-year November average of 653,059 tons. From January through November, just more than 5 million tons were shipped, compared to 7.9 million tons during the same period last year and a five-year January-November average of 6.6 million tons.
In Superior, 260,315 net tons of iron ore were shipped in November, compared to 925,343 last year and a five-year November average of 1.1 million tons. From January through November,
2.2 million tons were shipped, compared to nearly 10 million tons last year and a five-year average of 10.7 million tons.
In Two Harbors, nearly 1.4 million net tons of iron ore were shipped in November, more than last year’s total and the five-year November average of 1.3 million tons. From January through November, nearly 6 million tons were shipped, compared to last year’s total and the five-year average of 12.4 million tons.
In Silver Bay, 645,160 net tons were shipped in November, far more than the 49,896 tons shipped last year and the five-year November average of 389,564 tons. From January through November, 2.7 million tons were shipped, compared to 6.7 million tons last year and a five-year average of 5.1 million tons.
Source: Duluth News Tribune
Just more than 4.6 million net tons of ore were shipped last month — 27 percent more than October’s tonnage, according to numbers released Thursday by the Lake Carrier’s Association. Still, November shipments were 6 percent less than last year, and nearly 14 percent below the month’s 2004-08 average.
For the year, the Great Lakes iron ore trade stands at 27.5 million tons, a decrease of 50.1 percent from last year and 49.3 percent less than the five-year average.
In Duluth, 552,430 net tons of iron ore were shipped in November, compared to 983,810 tons last year and a five-year November average of 653,059 tons. From January through November, just more than 5 million tons were shipped, compared to 7.9 million tons during the same period last year and a five-year January-November average of 6.6 million tons.
In Superior, 260,315 net tons of iron ore were shipped in November, compared to 925,343 last year and a five-year November average of 1.1 million tons. From January through November,
2.2 million tons were shipped, compared to nearly 10 million tons last year and a five-year average of 10.7 million tons.
In Two Harbors, nearly 1.4 million net tons of iron ore were shipped in November, more than last year’s total and the five-year November average of 1.3 million tons. From January through November, nearly 6 million tons were shipped, compared to last year’s total and the five-year average of 12.4 million tons.
In Silver Bay, 645,160 net tons were shipped in November, far more than the 49,896 tons shipped last year and the five-year November average of 389,564 tons. From January through November, 2.7 million tons were shipped, compared to 6.7 million tons last year and a five-year average of 5.1 million tons.
Source: Duluth News Tribune
Kerala Eye Sri Lankan Mineral Sand
The Indian state government of Kerala is exploring the possibility of importing mineral sand from Sri Lanka especially from the war-free Eastern region, State Minister of Industries Elamaran Kareem told a visiting Business Times journalist in Trivendrum on Wednesday.
The interview was on the sidelines of a visit by two journalists from Sri Lanka on invitation by the Kerala Industrial Infrastructure Development Cooperation (KINFRA) to the KINFRA film and video park.
Mr Kareem said that Kerala always welcomes assistance from its Sri Lankan brethren in strengthening techno - manufacturing links between the two countries. “After all you cannot ignore your immediate neighbour and they should work hand in hand towards development and future prosperity,” he said.
The state government plans to purchase mineral sand from Sri Lanka on a regular basis as the country is experiencing a short supply of ilmenite at present. The mineral sand will be used as basic raw material for the 500 tonne titanium sponge plant in Trivendrum.
He disclosed that second phase of the project includes valuable mineral separation, synthetic rutile capacity augmentation and a coal fired boiler. However, the short supply of ilmenite for Kerala Minerals and Metals Ltd and Travancore Titanium Products Ltd have made serious dents in profitability of these companies, he said.
The minister expressed the belief that Sri Lanka will become a major supplier of mineral sand for these Kerala companies. Sri Lanka’s main producer of mineral sands is Lanka Mineral Sands Ltd with its main production base at Pulmoddai in the East.
The state government of Kerala is also seeking assistance from Sri Lanka for the setting up of a coconut industrial park in Trivendrum. It will be established exclusively for the coconut industries to produce coconut based products with high value addition modeled on similar theme parks in Singapore, Malaysia and Hong Kong. Mr Kareem said that they welcome Sri Lankan experts and investors to launch joint venture projects at this proposed industrial park. He revealed that the state government of Kerala is exploring the possibility of importing coir from Sri Lanka as the country’s coir industry is facing a shortage at present.
Source: Sunday Times, Sri Lanka
The interview was on the sidelines of a visit by two journalists from Sri Lanka on invitation by the Kerala Industrial Infrastructure Development Cooperation (KINFRA) to the KINFRA film and video park.
Mr Kareem said that Kerala always welcomes assistance from its Sri Lankan brethren in strengthening techno - manufacturing links between the two countries. “After all you cannot ignore your immediate neighbour and they should work hand in hand towards development and future prosperity,” he said.
The state government plans to purchase mineral sand from Sri Lanka on a regular basis as the country is experiencing a short supply of ilmenite at present. The mineral sand will be used as basic raw material for the 500 tonne titanium sponge plant in Trivendrum.
He disclosed that second phase of the project includes valuable mineral separation, synthetic rutile capacity augmentation and a coal fired boiler. However, the short supply of ilmenite for Kerala Minerals and Metals Ltd and Travancore Titanium Products Ltd have made serious dents in profitability of these companies, he said.
The minister expressed the belief that Sri Lanka will become a major supplier of mineral sand for these Kerala companies. Sri Lanka’s main producer of mineral sands is Lanka Mineral Sands Ltd with its main production base at Pulmoddai in the East.
The state government of Kerala is also seeking assistance from Sri Lanka for the setting up of a coconut industrial park in Trivendrum. It will be established exclusively for the coconut industries to produce coconut based products with high value addition modeled on similar theme parks in Singapore, Malaysia and Hong Kong. Mr Kareem said that they welcome Sri Lankan experts and investors to launch joint venture projects at this proposed industrial park. He revealed that the state government of Kerala is exploring the possibility of importing coir from Sri Lanka as the country’s coir industry is facing a shortage at present.
Source: Sunday Times, Sri Lanka
Saturday, December 12, 2009
SA Mining Output Down In October
South Africa's total mining production decreased in October, Statistics South Africa said on Thursday.
"Mining production for October 2009 decreased by 8.5 percent compared with October 2008," the Pretoria agency said.
In addition, the total value of mineral sales at current prices for the third quarter of 2009 decreased by 28.5 percent compared with the third quarter of 2008, it reported.
The major contributors to the decrease of 28.5 percent were platinum group metals, down 12.4 percent; coal, down 7.5 percent; and manganese ore, down 6.6 percent.
The minerals that made a substantial positive contribution to the change were iron ore, up 1.4 percent, and gold, up 1.1 percent.
Source: SAPA
"Mining production for October 2009 decreased by 8.5 percent compared with October 2008," the Pretoria agency said.
In addition, the total value of mineral sales at current prices for the third quarter of 2009 decreased by 28.5 percent compared with the third quarter of 2008, it reported.
The major contributors to the decrease of 28.5 percent were platinum group metals, down 12.4 percent; coal, down 7.5 percent; and manganese ore, down 6.6 percent.
The minerals that made a substantial positive contribution to the change were iron ore, up 1.4 percent, and gold, up 1.1 percent.
Source: SAPA
Eramet Acquires French Recycler
ERAMET announced that it has signed an agreement with the AFE group for the acquisition by ERAMET of the French company VALDI.
The acquisition remains subject to clearance by authorities and the removal of standard conditions.
Created in 1997 by AFE, VALDI is specialized in the processing and recycling of non ferrous metals. VALDI operates in three activities
1. Battery recycling
2. Oil and chemical catalyst recycling
3. Other metal waste processing
VALDI employs approximately 90 people and recorded turnover of 25 million euros in 2008.
Operations are based on two sites in France
A. The Palais sur Vienne site near Limoges has the following activities
1. Calcining catalysts containing nickel, molybdenum and vanadium
2. Manufacturing ferroalloys in a submerged electrode furnace, in which catalysts and waste from special steel production are processed
B. The Feurs site near Saint Etienne has the following activities
1. Manufacturing ferroalloys from pre-sorted saline and alkaline batteries
2. Refining alloys to specific customer requirements
The acquisition of VALDI will enable ERAMET to strengthen its positions in recycling in Europe. It is a perfect fit with the Group’s existing activities in oil catalysts, of which ERAMET is the world leader through its Gulf Chemical & Metallurgical Corporation subsidiary in the United States.
Moreover, the Group may develop metal waste recycling and the custom production of remelted alloys for the requirements of the Alloys Division as well for external customers.
Finally, the Group is gaining a foothold in battery recycling, a new, growing market driven by changes in European legislation and the development of electric vehicles, which is increasing the value of metals such as nickel, cobalt, lithium and zinc.
Mr Patrick Buffet chairman & CEO of ERAMET stated “Recycling is a major growth avenue for the Group and enables us to strengthen our sustainable development-related activities. ERAMET has a full set of technological skills for optimum recovery of the metals contained in various types of products to be recycled, whether by hydrometallurgical or pyro metallurgical processes. The acquisition of VALDI is a very positive development for the Group in the recycling field in Europe and an excellent fit with our activities in North America and Sweden.”
Source: Steel Guru
The acquisition remains subject to clearance by authorities and the removal of standard conditions.
Created in 1997 by AFE, VALDI is specialized in the processing and recycling of non ferrous metals. VALDI operates in three activities
1. Battery recycling
2. Oil and chemical catalyst recycling
3. Other metal waste processing
VALDI employs approximately 90 people and recorded turnover of 25 million euros in 2008.
Operations are based on two sites in France
A. The Palais sur Vienne site near Limoges has the following activities
1. Calcining catalysts containing nickel, molybdenum and vanadium
2. Manufacturing ferroalloys in a submerged electrode furnace, in which catalysts and waste from special steel production are processed
B. The Feurs site near Saint Etienne has the following activities
1. Manufacturing ferroalloys from pre-sorted saline and alkaline batteries
2. Refining alloys to specific customer requirements
The acquisition of VALDI will enable ERAMET to strengthen its positions in recycling in Europe. It is a perfect fit with the Group’s existing activities in oil catalysts, of which ERAMET is the world leader through its Gulf Chemical & Metallurgical Corporation subsidiary in the United States.
Moreover, the Group may develop metal waste recycling and the custom production of remelted alloys for the requirements of the Alloys Division as well for external customers.
Finally, the Group is gaining a foothold in battery recycling, a new, growing market driven by changes in European legislation and the development of electric vehicles, which is increasing the value of metals such as nickel, cobalt, lithium and zinc.
Mr Patrick Buffet chairman & CEO of ERAMET stated “Recycling is a major growth avenue for the Group and enables us to strengthen our sustainable development-related activities. ERAMET has a full set of technological skills for optimum recovery of the metals contained in various types of products to be recycled, whether by hydrometallurgical or pyro metallurgical processes. The acquisition of VALDI is a very positive development for the Group in the recycling field in Europe and an excellent fit with our activities in North America and Sweden.”
Source: Steel Guru
Friday, December 11, 2009
Atlas Iron Exports 1 Million Tonnes In 2009
Atlas Iron Ltd has shipped over 1 million tonnes of ore during 2009 as the miner achieves all of its key production and operating targets.
The Australian miner shipped 1.02 million tonnes of iron ore during calendar 2009 from its Pardoo direct shipping ore project in Western Australia' Pilbara region and 1.08 million tonnes since it started shipments in December 2008, Perth-based Atlas said in a statement on Friday.
"This is a fantastic achievement for the Company, particularly when you consider that we started mining in the middle of the global financial crisis in late 2008," Atlas chief executive David Flanagan said in the statement.
"I would like to thank Atlas staff, our contractors and FMG (Fortescue Metals Group Ltd)."
Atlas shipped the ore through Fortescue's Port Hedland port facility.
Source: AAP
The Australian miner shipped 1.02 million tonnes of iron ore during calendar 2009 from its Pardoo direct shipping ore project in Western Australia' Pilbara region and 1.08 million tonnes since it started shipments in December 2008, Perth-based Atlas said in a statement on Friday.
"This is a fantastic achievement for the Company, particularly when you consider that we started mining in the middle of the global financial crisis in late 2008," Atlas chief executive David Flanagan said in the statement.
"I would like to thank Atlas staff, our contractors and FMG (Fortescue Metals Group Ltd)."
Atlas shipped the ore through Fortescue's Port Hedland port facility.
Source: AAP
Molybdenum Prices Continue To Slide
Molybdenum prices are continuing to slide, reflecting the market's poor fundamentals. But there is debate within the marketplace about futures prices since some analysts say they weaken further in early 2010 while at least one producers see a demand surge ahead.
Steel mills are working down moly inventories this month and ordering little new stock, according to alloys/ferroalloys buyers at two steel mills, so the spot price have slipped to an average $10.75/lb this month from an average $11.01 in November and the peak of $16.64 in August.
Last summer, the mills were buying moly extensively just prior to the dramatic pickup in weekly carbon steelmaking output that has since stalled. Atop that, "the mooted revival in the stainless steel industry has failed to materialize," says independent consultant Angus MacMillan.
Traders have told AMM.com they expect business to be slow through year's end, which is similar to the commentary from those responding to this month's Purchasing.com buyers' survey. They see December as a lackluster buying for molybdenum. That meshes with a trader's comment to AMM.com that "December is going to be a tough month because deliveries are going to be cut back because of the holidays and people don't want to hold inventories toward the end of the year."
Looking ahead, Kevin Loughrey, CEO of moly producer Thompson Creek Metals, tells a mining conference in New York that steelmaking activity likely will pick up in January, raising molybdenum demand. He says the Colorado-based company expects demand to increase due to recovering economic activity and new uses for the metal, while supply could be constrained by delayed development of new mines caused by the global financial crisis. Loughrey expects global demand for moly to rise to 600 million lbs by 2015 from about 460 million lbs this year.
Source: Purchasing.com
Steel mills are working down moly inventories this month and ordering little new stock, according to alloys/ferroalloys buyers at two steel mills, so the spot price have slipped to an average $10.75/lb this month from an average $11.01 in November and the peak of $16.64 in August.
Last summer, the mills were buying moly extensively just prior to the dramatic pickup in weekly carbon steelmaking output that has since stalled. Atop that, "the mooted revival in the stainless steel industry has failed to materialize," says independent consultant Angus MacMillan.
Traders have told AMM.com they expect business to be slow through year's end, which is similar to the commentary from those responding to this month's Purchasing.com buyers' survey. They see December as a lackluster buying for molybdenum. That meshes with a trader's comment to AMM.com that "December is going to be a tough month because deliveries are going to be cut back because of the holidays and people don't want to hold inventories toward the end of the year."
Looking ahead, Kevin Loughrey, CEO of moly producer Thompson Creek Metals, tells a mining conference in New York that steelmaking activity likely will pick up in January, raising molybdenum demand. He says the Colorado-based company expects demand to increase due to recovering economic activity and new uses for the metal, while supply could be constrained by delayed development of new mines caused by the global financial crisis. Loughrey expects global demand for moly to rise to 600 million lbs by 2015 from about 460 million lbs this year.
Source: Purchasing.com
Indian Steel Prices To Rise On Costlier Ore
Rising demand and steep rise in raw material prices may lead to a 10-30% hike in prices.
After a downward trend, steel prices are headed for an increase next month, led by a demand push and steep increase in raw material prices.
The raw material negotiations are slated to start in January and indications are that the increase in new contract prices could be between 10 and 30 per cent. Last year, iron ore contract prices were sealed at $80 a tonne (Rs 3,742). Currently, spot iron prices in China are trading at $126 a tonne (Rs 5,893), an increase of 13.5 per cent in the past six months. Coking coal prices have increased to $186 (Rs 8,692) a tonne since May. Last year, contract prices were $129 (Rs 6,033) a tonne.
Jayant Acharya, director (sales & marketing), JSW Steel, said contracts could settle at $140 (Rs 6,548) a tonne, while iron ore prices would also increase.
Coupled with a demand push from the automobile and consumer durable sectors in the domestic market, the steel industry was headed for better times. “Prices have bottomed out. For next month, the inclination is to increase prices,” said Acharya.
That is the sentiment among most producers. “Raw material prices are increasing because there is demand from the user industries,” said Anil Sureka, director (finance), Ispat Industries.
The increase in January would be after five months. This month, some of the producers made price adjustments, while some just rolled over prices.
Sureka pointed out, international steel prices were also on the rise. Over the past fortnight, global prices have increased by around $20 (Rs 935) a tonne. “This is holiday season and once it’s over, activities will start picking up in the international market,” said industry sources. At present, Indian steel prices are around $20 a tonne higher than international prices. Hot-rolled coil, the benchmark price for flat products used by the automobile and consumer durable sectors, is at Rs 31,000 a tonne now. Prices of imported steel scrap also increased from $290 to $340 a tonne in just one month.
However, China, which consumes and produces around 50 per cent of global steel, would ultimately determine the price swing. According to reports, China is expected to increase output by around 10 per cent next year. The steel guzzler has also reduced exports, indicating a higher proportion of production being consumed domestically. Standard Chartered Bank’s commodity outlook said the consumption strength was good for 2010.
Source: Business Standard
After a downward trend, steel prices are headed for an increase next month, led by a demand push and steep increase in raw material prices.
The raw material negotiations are slated to start in January and indications are that the increase in new contract prices could be between 10 and 30 per cent. Last year, iron ore contract prices were sealed at $80 a tonne (Rs 3,742). Currently, spot iron prices in China are trading at $126 a tonne (Rs 5,893), an increase of 13.5 per cent in the past six months. Coking coal prices have increased to $186 (Rs 8,692) a tonne since May. Last year, contract prices were $129 (Rs 6,033) a tonne.
Jayant Acharya, director (sales & marketing), JSW Steel, said contracts could settle at $140 (Rs 6,548) a tonne, while iron ore prices would also increase.
Coupled with a demand push from the automobile and consumer durable sectors in the domestic market, the steel industry was headed for better times. “Prices have bottomed out. For next month, the inclination is to increase prices,” said Acharya.
That is the sentiment among most producers. “Raw material prices are increasing because there is demand from the user industries,” said Anil Sureka, director (finance), Ispat Industries.
The increase in January would be after five months. This month, some of the producers made price adjustments, while some just rolled over prices.
Sureka pointed out, international steel prices were also on the rise. Over the past fortnight, global prices have increased by around $20 (Rs 935) a tonne. “This is holiday season and once it’s over, activities will start picking up in the international market,” said industry sources. At present, Indian steel prices are around $20 a tonne higher than international prices. Hot-rolled coil, the benchmark price for flat products used by the automobile and consumer durable sectors, is at Rs 31,000 a tonne now. Prices of imported steel scrap also increased from $290 to $340 a tonne in just one month.
However, China, which consumes and produces around 50 per cent of global steel, would ultimately determine the price swing. According to reports, China is expected to increase output by around 10 per cent next year. The steel guzzler has also reduced exports, indicating a higher proportion of production being consumed domestically. Standard Chartered Bank’s commodity outlook said the consumption strength was good for 2010.
Source: Business Standard
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