India’s coal production stood at 492.95 million tonnes in 2008-09 a rise of 8% from 457.08 million tonnes the previous year as Coal India Ltd increased its output.
Of the increase of 36 million tonnes, Coal India Ltd (CIL) and the Singareni Collieries Company Limited contributed 24 million tonnes and 4 million tonnes respectively.
Production to December 2009 was 365.088 million tonnes.
To meet a domestic shortfall the companies also resorted imported around 59 million tonnes with around 24 million tonnes of coking coal and 35 million tonnes of non-coking coal in 2008-09.
Imported coking coal, mostly from Australia, is mainly used in steel making. Non-coking coal, mostly imported from Indonesia and South Africa, is used in power generation and cement manufacturing also mainly on cost/quality consideration.
Coking coal production to December 2009 was 29.488 million tonnes with about 3.858 million tonnes of coking coal produced in December 2009 against 3.633 million tonnes in December 2008.
Indian coal is traditionally high ash coal and of low calorific value.
Sunday, January 31, 2010
Globe Re-opens Selma Silicon Plant
Globe Specialty Metals has taken on 90 staff to operate its silicon plant in Selma, Alabama, which re-opened on Friday.
“Globe Selma is back on its feet and standing tall,” said Globe CEO Jeff Bradley. “We look forward to a future in Selma that is bright.”
The Selma plant has an annual production of over 27,000 tons of metallurgical grade silicon and silicon ferro-alloys, supplying to manufacturers of aluminium, electronics, solar panels, silicon chemicals, the auto industry, ductile iron foundries and concrete products.
The company made the Selma plant idle in April of last year but reopened it with renovated machinery last October. As production picked back up the company added 90 more positions.
“The country and state have been through some tough times and this year is going to be tough too,” Bradley said. “But, we are going to keep jobs on our own soil.”
“Globe Selma is back on its feet and standing tall,” said Globe CEO Jeff Bradley. “We look forward to a future in Selma that is bright.”
The Selma plant has an annual production of over 27,000 tons of metallurgical grade silicon and silicon ferro-alloys, supplying to manufacturers of aluminium, electronics, solar panels, silicon chemicals, the auto industry, ductile iron foundries and concrete products.
The company made the Selma plant idle in April of last year but reopened it with renovated machinery last October. As production picked back up the company added 90 more positions.
“The country and state have been through some tough times and this year is going to be tough too,” Bradley said. “But, we are going to keep jobs on our own soil.”
Karzai Estimates Afghan Mineral Reserves At One Trillion Dollars
Afghanistan’s President Karzai has told reporters that his country is sitting on mineral and petroleum reserves worth an estimated one trillion dollars.
The President told reporters on Sunday that he is basing his assertion on a $17 million survey which the United States Geological Survey (USGS) has been working on for a number of years and which is due to be completed in a couple of months. If correct the war-ravaged nation could become one of the richest in the world if helped to tap its geological deposits.
Afghanistan is not known as a resource-rich country however it does have deposits of copper, iron ore, gold and chromite, as well as natural gas, oil and precious and semi-precious stones. Little of these have been exploited as the country has been mired in an ongoing conflict for 30 years.
China and India have bid for contracts to develop mines, with China's state-owned metals giant Metallurgical Group Corporation (MCC) winning a three-billion-dollar contract to develop the Aynak copper mine -- one of the world's biggest copper mines-- over the next 30 years. An iron ore contract is expected to be awarded later this year.
Aynak 30 kilometres (20 miles) to the south of Kabul was discovered in 1974 and is estimated to contain 11.3 million tonnes of copper.
The Hajigak iron ore mine in Bamiyan province, north of Kabul, is currently under tender, with one Chinese and six Indian firms bidding. The contract is for the exploitation of almost two billion tonnes of high-grade ore, involving processing, smelting, steel production and electricity production.
The President told reporters on Sunday that he is basing his assertion on a $17 million survey which the United States Geological Survey (USGS) has been working on for a number of years and which is due to be completed in a couple of months. If correct the war-ravaged nation could become one of the richest in the world if helped to tap its geological deposits.
Afghanistan is not known as a resource-rich country however it does have deposits of copper, iron ore, gold and chromite, as well as natural gas, oil and precious and semi-precious stones. Little of these have been exploited as the country has been mired in an ongoing conflict for 30 years.
China and India have bid for contracts to develop mines, with China's state-owned metals giant Metallurgical Group Corporation (MCC) winning a three-billion-dollar contract to develop the Aynak copper mine -- one of the world's biggest copper mines-- over the next 30 years. An iron ore contract is expected to be awarded later this year.
Aynak 30 kilometres (20 miles) to the south of Kabul was discovered in 1974 and is estimated to contain 11.3 million tonnes of copper.
The Hajigak iron ore mine in Bamiyan province, north of Kabul, is currently under tender, with one Chinese and six Indian firms bidding. The contract is for the exploitation of almost two billion tonnes of high-grade ore, involving processing, smelting, steel production and electricity production.
Friday, January 29, 2010
China Reschedules Zimbabwe Steel Debt
China has rescheduled to 2013 the debt of Zimbabwe's biggest iron and steel maker following a request by the Zimbabwean government, according to official sources.
Zimbabwean Industry and International Trade Minister Welshman Ncube told Xinhua on Friday that the Zimbabwe Iron and Steel Company (ZISCO) was presently not generating any income and was unable to service its 54.684 million U. S. dollars debt to the Chinese financiers.
The Chinese financiers extended the loan in 2007 to assist ZISCO refurbish one of its blast furnaces.
Ncube said the debt had a repayment schedule of 5 million dollars a year and that the first payment was due at the beginning of last year.
The struggling ZISCO managed to pay around one million dollars, prompting the government to request for debt relief from the Chinese financiers.
"We asked the Ministry of Finance to renegotiate the payment terms on the understanding that by 2013 ZISCO will be fully operational," Ncube said.
He said the government was happy with the debt relief, indicating this would give ZISCO the breathing space to concentrate on refurbishing the blast furnace and improve operations at the company.
"Right now we are still working with the Chinese contractors to refurbish Blast Furnace Number Four," he said, adding the major challenge had been that the company was using the little money generated to service the debt at the expense of perfecting the machine.
Ncube said the government was also scouting for a strategic partner to purchase part of its 88 percent shareholding in ZISCO to inject working capital in the iron and steel maker, which is part of the 40 companies that were slapped with sanctions by the West.
Ncube spoke as officials from China's Eximbank and Sinosure -- a Chinese State enterprise -- signed a memorandum of understanding with the Zimbabwean government on various projects.
The agreement would see Eximbank investing in projects to improve water supply in Harare and the production of fertilizer and pharmaceutical drugs.
Sinosure will provide insurance cover for the projects that will be supported by Eximbank.
The first phase of the program will see Eximbank financing fertilizer supply, medicines, and water chemicals for Harare.
Speaking during a meeting with the Chinese delegation on Thursday, Acting President Joice Mujuru welcomed the debt relief and China's readiness to appreciate Zimbabwe's difficulties.
She said the chosen projects were critical in the revival of the country's economy.
The Sinosure executive vice president and head of the delegation, Zhang Weidong, said the debt arrangement and the three projects they will support opened a broader way of future cooperation with Zimbabwe.
China's cooperation with Zimbabwe has been growing tremendously over the years, with the country providing approximately 300 million dollars in aid to Zimbabwe last year.
Source: CRI
Zimbabwean Industry and International Trade Minister Welshman Ncube told Xinhua on Friday that the Zimbabwe Iron and Steel Company (ZISCO) was presently not generating any income and was unable to service its 54.684 million U. S. dollars debt to the Chinese financiers.
The Chinese financiers extended the loan in 2007 to assist ZISCO refurbish one of its blast furnaces.
Ncube said the debt had a repayment schedule of 5 million dollars a year and that the first payment was due at the beginning of last year.
The struggling ZISCO managed to pay around one million dollars, prompting the government to request for debt relief from the Chinese financiers.
"We asked the Ministry of Finance to renegotiate the payment terms on the understanding that by 2013 ZISCO will be fully operational," Ncube said.
He said the government was happy with the debt relief, indicating this would give ZISCO the breathing space to concentrate on refurbishing the blast furnace and improve operations at the company.
"Right now we are still working with the Chinese contractors to refurbish Blast Furnace Number Four," he said, adding the major challenge had been that the company was using the little money generated to service the debt at the expense of perfecting the machine.
Ncube said the government was also scouting for a strategic partner to purchase part of its 88 percent shareholding in ZISCO to inject working capital in the iron and steel maker, which is part of the 40 companies that were slapped with sanctions by the West.
Ncube spoke as officials from China's Eximbank and Sinosure -- a Chinese State enterprise -- signed a memorandum of understanding with the Zimbabwean government on various projects.
The agreement would see Eximbank investing in projects to improve water supply in Harare and the production of fertilizer and pharmaceutical drugs.
Sinosure will provide insurance cover for the projects that will be supported by Eximbank.
The first phase of the program will see Eximbank financing fertilizer supply, medicines, and water chemicals for Harare.
Speaking during a meeting with the Chinese delegation on Thursday, Acting President Joice Mujuru welcomed the debt relief and China's readiness to appreciate Zimbabwe's difficulties.
She said the chosen projects were critical in the revival of the country's economy.
The Sinosure executive vice president and head of the delegation, Zhang Weidong, said the debt arrangement and the three projects they will support opened a broader way of future cooperation with Zimbabwe.
China's cooperation with Zimbabwe has been growing tremendously over the years, with the country providing approximately 300 million dollars in aid to Zimbabwe last year.
Source: CRI
Iron Ore Prices 'Set To Rise By 50 Per Cent'
Iron ore prices seem to be going the coking coal way.
Thanks to a surge in Chinese demand, rates are likely to remain buoyant. Some analysts expect long-term global benchmark prices in 2010 to be higher by up to 50% from last year.
A recent Macquarie report said Australia’s total iron ore exports shot up at the end of 2009, with China taking the major share. “In 2009, Australian iron ore exports shot up 17% to 383 mt. Of this, around 282 mt was exported to China, up 46% from the previous year,” the report said.
China’s iron ore imports rose 22% month-on-month in December to 62 mt, taking total imports for 2009 to 628 mt (42% year-on-year rise).
According to Sanjay Jain,analyst, Motilal Oswal, “Spot iron ore prices for 63.5% Fe material rose sharply last week to $133-137/tonne. Iron ore prices are likely to remain strong given the continued demand from China and consolidation of suppliers”.
“Long-term benchmark contract prices are expected to be 20-40% higher than last year,” the report said.
DSP Merrill Lynch analyst Bhaskar Basu is even more bullish on ore prices. He expects rates to be 50% higher in the new year.
“Our bullish view on iron ore is based on 1) tight supply and demand balance, 2) higher spot prices (now at an 80% premium to benchmark), and 3) faster than expected steel market recovery,” the analyst said in a recent report..
Macquire, however, expects that Chinese domestic mines will reopen after a harsh winter and it forecasts a 28% year-on-year rise in domestic production in 2010. But spot prices may go up higher if China’s severe winter delays restart of mines.
“For this reason, we see limited downside in iron ore spot prices even after the restarts commence,” the report stated.
In India, if prices are on the upside, it could mean better earnings for companies like Sesa Goa, which has rich iron ore reserves of 310 million tonnes in the states of Goa, Karnataka and Orissa.
Rana Som, chairman and managing director, NMDC, the largest iron ore supplier, however, said, “It is very difficult to predict iron ore prices, which depends on a host of factors. While global majors like BHP and Rio Tinto have the bargaining power, Chinese and Japanese are large markets.. All of these together influence price movements”.
An analyst with a leading consultant said on the condition of anonymity, “Indian iron ore prices can be firmer by 15% or so. With Indian steel industry showing signs of firm demand, the scope of growth is high.
Even on the coking coal front, huge increase of global Chinese imports of coking coal particularly from Australia has resulted in a spurt in coking coal prices in recent times.
Source: DNA
Thanks to a surge in Chinese demand, rates are likely to remain buoyant. Some analysts expect long-term global benchmark prices in 2010 to be higher by up to 50% from last year.
A recent Macquarie report said Australia’s total iron ore exports shot up at the end of 2009, with China taking the major share. “In 2009, Australian iron ore exports shot up 17% to 383 mt. Of this, around 282 mt was exported to China, up 46% from the previous year,” the report said.
China’s iron ore imports rose 22% month-on-month in December to 62 mt, taking total imports for 2009 to 628 mt (42% year-on-year rise).
According to Sanjay Jain,analyst, Motilal Oswal, “Spot iron ore prices for 63.5% Fe material rose sharply last week to $133-137/tonne. Iron ore prices are likely to remain strong given the continued demand from China and consolidation of suppliers”.
“Long-term benchmark contract prices are expected to be 20-40% higher than last year,” the report said.
DSP Merrill Lynch analyst Bhaskar Basu is even more bullish on ore prices. He expects rates to be 50% higher in the new year.
“Our bullish view on iron ore is based on 1) tight supply and demand balance, 2) higher spot prices (now at an 80% premium to benchmark), and 3) faster than expected steel market recovery,” the analyst said in a recent report..
Macquire, however, expects that Chinese domestic mines will reopen after a harsh winter and it forecasts a 28% year-on-year rise in domestic production in 2010. But spot prices may go up higher if China’s severe winter delays restart of mines.
“For this reason, we see limited downside in iron ore spot prices even after the restarts commence,” the report stated.
In India, if prices are on the upside, it could mean better earnings for companies like Sesa Goa, which has rich iron ore reserves of 310 million tonnes in the states of Goa, Karnataka and Orissa.
Rana Som, chairman and managing director, NMDC, the largest iron ore supplier, however, said, “It is very difficult to predict iron ore prices, which depends on a host of factors. While global majors like BHP and Rio Tinto have the bargaining power, Chinese and Japanese are large markets.. All of these together influence price movements”.
An analyst with a leading consultant said on the condition of anonymity, “Indian iron ore prices can be firmer by 15% or so. With Indian steel industry showing signs of firm demand, the scope of growth is high.
Even on the coking coal front, huge increase of global Chinese imports of coking coal particularly from Australia has resulted in a spurt in coking coal prices in recent times.
Source: DNA
Thursday, January 28, 2010
ZIMASCO Plans To Double Output
MIDLANDS-based ferro-chrome producer, Zimasco plans to upgrade and refurbish key plant in order to ramp-up production and take advantage of firming prices in the global stainless steel market.
Global ferro-chromo production is on the rebound after taking a knock from the world-wide economic crisis with the stainless steel market, a major user of ferro-chrome, showing signs of stabilising after high levels of stock build-up towards the end of last year.
Zimasco Chief Executive Officer Sydwell Jena says his company plans to increase production from the 69 000 tonnes recorded at the end of last year to about 162 000 by bringing one of the company’s furnaces back on line.
Jena said the company, now a subsidiary of China’s Sinosteel Corp, plans to eventually see increase to 230 000 tonnes per year as the metal’s price firms.
“Zimasco plans to increase production by upgrading furnace No 2 furnace when our capital allows it. This will increase operational capacity to 230,000 tonnes.
“Further expansion is also planned beyond the refurbishment of furnace No 2, although the extent is yet to be determined,” he said.
The Zimbabwe government disposed of its majority interest in Zimasco’s to Sinosteel and Jena says the tie-up has brought significant operational benefits for the company.
“New off-take agreements have been signed since Sinosteel Corp became the majority shareholder of Zimasco. This includes an off-take agreement with Sinosteel Raw Materials, a subsidiary of Sinosteel Corp.
“The association with Sinosteel allows Zimasco access to various logistical, marketing and financial facilities at competitive rates, as well as opening doors to major stainless steelmakers (our customers),” Jena said.
Zimasco sells 48 percent of its products to Europe, mainly in Germany, Italy, Spain and France, while 34 percent goes to China and Japan, and 18 percent to the US market.
Source: New Zimbabwe
Global ferro-chromo production is on the rebound after taking a knock from the world-wide economic crisis with the stainless steel market, a major user of ferro-chrome, showing signs of stabilising after high levels of stock build-up towards the end of last year.
Zimasco Chief Executive Officer Sydwell Jena says his company plans to increase production from the 69 000 tonnes recorded at the end of last year to about 162 000 by bringing one of the company’s furnaces back on line.
Jena said the company, now a subsidiary of China’s Sinosteel Corp, plans to eventually see increase to 230 000 tonnes per year as the metal’s price firms.
“Zimasco plans to increase production by upgrading furnace No 2 furnace when our capital allows it. This will increase operational capacity to 230,000 tonnes.
“Further expansion is also planned beyond the refurbishment of furnace No 2, although the extent is yet to be determined,” he said.
The Zimbabwe government disposed of its majority interest in Zimasco’s to Sinosteel and Jena says the tie-up has brought significant operational benefits for the company.
“New off-take agreements have been signed since Sinosteel Corp became the majority shareholder of Zimasco. This includes an off-take agreement with Sinosteel Raw Materials, a subsidiary of Sinosteel Corp.
“The association with Sinosteel allows Zimasco access to various logistical, marketing and financial facilities at competitive rates, as well as opening doors to major stainless steelmakers (our customers),” Jena said.
Zimasco sells 48 percent of its products to Europe, mainly in Germany, Italy, Spain and France, while 34 percent goes to China and Japan, and 18 percent to the US market.
Source: New Zimbabwe
Chinese Government Ministry Backs United Iron Ore Talks
The Ministry of Industry and Information Technology said Wednesday it backs united iron ore talks led by the China Iron & Steel Association (CISA) and the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters.
MIIT spokesman Zhu Hongren told a press conference the ministry backs the ongoing talks and will support relevant departments in finalizing an iron ore import recording system and reviewing the location of imported iron ore to curb price hikes caused by disorderly competition.
Zhu said that China hopes the three major iron ore miners, Rio, BHP and Vale, can reach a fair and equitable price with the world's largest steel producer and iron ore importer, bearing in mind long-term interests of the industry and friendly long term cooperation with China.
Chinese steel mills negotiate with the miners every year on iron ore prices. The talks for last year and 2010 reached an impasse in June because the two sides couldn't agree on a further 12 percent discount beyond that accepted by Japanese and South Korean steel mills.
Insiders and analysts are not optimistic on the 2010/2011 iron ore talks due to China's rising demand and climbing spot prices.
China imported 630 million tons of iron ore last year, a 41.6 percent year-on-year increase, at an average price of $79.90 per ton. It produced 568 million tons of crude steel in 2009, compared with 500 million tons in 2008.
Umetal steel analyst Du Wei predicted a 10 percent increase in the country's crude steel output, adding iron ore talks will go against China in the next few years in view of China's climbing steel output.
Iron ore spot prices rose to $100 per ton at the end of December, and to more than $130 earlier this month.
A source close to the matter told the Global Times that it is possible China will follow Japan and Korea, as it did last year, although the Chinese negotiation team has been trying to facilitate negotiations by working with Japan, Korea and Brazil, though the results haven't been as good as expected. The source is expecting a 10-15 percent price hike.
Du agreed. When Japan and other countries finish talks, China may follow if the price is not far from its psychological price point, he said.
Goldman Sachs raised its forecasts for the 2010/2011 iron ore contract price to nearly 35 percent, up from an earlier projection of 20 percent increase. Macquaire Securities Group predicted December 15 that the three miners might ask for a 30 percent increase in contract prices this year.
The government is trimming outdated overcapacity and encouraging development of domestic iron ore miners and looking for more import sources overseas to reduce dependence on the three miners.
The source said the MIIT has submitted to the National Development and Reform Committee and the State Council guidance on mergers and acquisition in the steel industry to cultivate three to five globally competitive steel mills.
Source: Global Times
MIIT spokesman Zhu Hongren told a press conference the ministry backs the ongoing talks and will support relevant departments in finalizing an iron ore import recording system and reviewing the location of imported iron ore to curb price hikes caused by disorderly competition.
Zhu said that China hopes the three major iron ore miners, Rio, BHP and Vale, can reach a fair and equitable price with the world's largest steel producer and iron ore importer, bearing in mind long-term interests of the industry and friendly long term cooperation with China.
Chinese steel mills negotiate with the miners every year on iron ore prices. The talks for last year and 2010 reached an impasse in June because the two sides couldn't agree on a further 12 percent discount beyond that accepted by Japanese and South Korean steel mills.
Insiders and analysts are not optimistic on the 2010/2011 iron ore talks due to China's rising demand and climbing spot prices.
China imported 630 million tons of iron ore last year, a 41.6 percent year-on-year increase, at an average price of $79.90 per ton. It produced 568 million tons of crude steel in 2009, compared with 500 million tons in 2008.
Umetal steel analyst Du Wei predicted a 10 percent increase in the country's crude steel output, adding iron ore talks will go against China in the next few years in view of China's climbing steel output.
Iron ore spot prices rose to $100 per ton at the end of December, and to more than $130 earlier this month.
A source close to the matter told the Global Times that it is possible China will follow Japan and Korea, as it did last year, although the Chinese negotiation team has been trying to facilitate negotiations by working with Japan, Korea and Brazil, though the results haven't been as good as expected. The source is expecting a 10-15 percent price hike.
Du agreed. When Japan and other countries finish talks, China may follow if the price is not far from its psychological price point, he said.
Goldman Sachs raised its forecasts for the 2010/2011 iron ore contract price to nearly 35 percent, up from an earlier projection of 20 percent increase. Macquaire Securities Group predicted December 15 that the three miners might ask for a 30 percent increase in contract prices this year.
The government is trimming outdated overcapacity and encouraging development of domestic iron ore miners and looking for more import sources overseas to reduce dependence on the three miners.
The source said the MIIT has submitted to the National Development and Reform Committee and the State Council guidance on mergers and acquisition in the steel industry to cultivate three to five globally competitive steel mills.
Source: Global Times
BHP May Only Sell 25 Per Cent Of Indonesia Coal Mine
BHP Billiton Ltd. plans to sell only a 25 percent stake in a coal project in Indonesia as it wants to retain control of the asset, said Indra Diannanjaya, president director of the unit, PT Maruwai Coal.
The Maruwai coal mine in Indonesia’s part of Borneo island will start production at the end of 2010 and output is expected to reach 40 million metric tons in the next 10 to 15 years, Diannanjaya said.
“We only plan to sell a 25 percent stake because we want to stay as a majority stakeholder and as the operator,” Diannanjaya said in an interview in Jakarta today. The stake sale “will give an opportunity to domestic companies to become our strategic partner in the coal mine.”
BHP Billiton said Sept. 16 a number of groups were interested in buying the coal project in Indonesia’s Central Kalimantan province. PT Medco Energi Internasional, PT Adaro Energy, PT Aneka Tambang and PT Indika Energy are among companies interested in the project, Bambang Setiawan, a director general of the Energy and Mineral Resources Ministry, said Sept. 15.
Investor Daily Indonesia reported on Jan. 7 BHP Billiton has selected PT Adaro Energy as a strategic partner to develop the coal project, citing a person it didn’t identify.
Source: Bloomberg
The Maruwai coal mine in Indonesia’s part of Borneo island will start production at the end of 2010 and output is expected to reach 40 million metric tons in the next 10 to 15 years, Diannanjaya said.
“We only plan to sell a 25 percent stake because we want to stay as a majority stakeholder and as the operator,” Diannanjaya said in an interview in Jakarta today. The stake sale “will give an opportunity to domestic companies to become our strategic partner in the coal mine.”
BHP Billiton said Sept. 16 a number of groups were interested in buying the coal project in Indonesia’s Central Kalimantan province. PT Medco Energi Internasional, PT Adaro Energy, PT Aneka Tambang and PT Indika Energy are among companies interested in the project, Bambang Setiawan, a director general of the Energy and Mineral Resources Ministry, said Sept. 15.
Investor Daily Indonesia reported on Jan. 7 BHP Billiton has selected PT Adaro Energy as a strategic partner to develop the coal project, citing a person it didn’t identify.
Source: Bloomberg
Wednesday, January 27, 2010
BHP Manganese, Copper Capacity Back To Normal In March
BHP Billiton's manganese, copper production capacity will return to normal in March.
BHP stated that to satisfy the increasing demand, manganese ore production in the fourth quarter reached 1.54mln tons, up by 33% month on month, up by 9% over the same period last year, the total production for the second half of 2009 slipped by 17% year on year. In this quarter, the manganese alloy production is around 65%, the number of smelting furnaces to be resumed continuously increases with the recovery of demand, and it is expected that at the end of March, manganese ore can be produced with the full capacity. In the fourth quarter, manganese alloy yield was 131,000 tons, up by 108% than the third quarter, down by 28% than last year. In the second half year, the total production was 194,000 tons, gliding by 49% year on year.
As of copper, ClarkShaft transportation system broke for more than three months, BHP's wholly-owned lympicDam mine in Australia, remains 25% exploit ability. Currently, the repair of ClarkShaft is smoothly ongoing and it will be resumed in the first quarter. In the fourth quarter, copper production was 261,000 tons, plunging by 31% month on month, sliding by 45% year on year. Additionally, Chile's Spence mine produced 18,800 tons, down by 32%, sinking by 58% year on year. But because scondida strongly produced and LagunaSecaSAG produced with the full capacity after the overhaul, in the fourth quarter, BHP's copper production decreased by only 5%. In the second half year, the total copper production tumbled by 6% month on month to 555,000 tons, down by 10% year on year.
Besides, BHP's aluminum, nickel production is at the high level in the fourth quarter.
Alumar continued increasing production, in the fourth quarter, BHP's aluminum production went up by 12% than last quarter, up by 5% year on year. Alumina's output in the second half of 2009 was 1.78mln tons, up by 1% year on year, metal aluminum output was 62,300 tons, upwards by 1% year on year. Currently, Alumar's production rose to 3.6mln tons from 1.5mln tons per year, and it is predicted that it will operation with the full capacity by the end of June.
Driven by the increasing production of Australia's Kalgoorlie nickel mill, BHP's production in the fourth quarter moved up by 38% to 49,000 tons, up by 20% year on year. Nickel production for the second half year was 84,400 tons, up by 45% year on year.
BHP's lead production recovered 3% in the four quarter, hitting 63,073 tons, still down by 4% than the same period last year. The lead production for the half year was 124,433 tons, same as last year.
Its zinc output in the fourth quarter went up by 29% to 59,835 tons, up by 58% year on year. Its production for the half year was 106,260 tons, up by 33% year on year.
Source: Alibaba
BHP stated that to satisfy the increasing demand, manganese ore production in the fourth quarter reached 1.54mln tons, up by 33% month on month, up by 9% over the same period last year, the total production for the second half of 2009 slipped by 17% year on year. In this quarter, the manganese alloy production is around 65%, the number of smelting furnaces to be resumed continuously increases with the recovery of demand, and it is expected that at the end of March, manganese ore can be produced with the full capacity. In the fourth quarter, manganese alloy yield was 131,000 tons, up by 108% than the third quarter, down by 28% than last year. In the second half year, the total production was 194,000 tons, gliding by 49% year on year.
As of copper, ClarkShaft transportation system broke for more than three months, BHP's wholly-owned lympicDam mine in Australia, remains 25% exploit ability. Currently, the repair of ClarkShaft is smoothly ongoing and it will be resumed in the first quarter. In the fourth quarter, copper production was 261,000 tons, plunging by 31% month on month, sliding by 45% year on year. Additionally, Chile's Spence mine produced 18,800 tons, down by 32%, sinking by 58% year on year. But because scondida strongly produced and LagunaSecaSAG produced with the full capacity after the overhaul, in the fourth quarter, BHP's copper production decreased by only 5%. In the second half year, the total copper production tumbled by 6% month on month to 555,000 tons, down by 10% year on year.
Besides, BHP's aluminum, nickel production is at the high level in the fourth quarter.
Alumar continued increasing production, in the fourth quarter, BHP's aluminum production went up by 12% than last quarter, up by 5% year on year. Alumina's output in the second half of 2009 was 1.78mln tons, up by 1% year on year, metal aluminum output was 62,300 tons, upwards by 1% year on year. Currently, Alumar's production rose to 3.6mln tons from 1.5mln tons per year, and it is predicted that it will operation with the full capacity by the end of June.
Driven by the increasing production of Australia's Kalgoorlie nickel mill, BHP's production in the fourth quarter moved up by 38% to 49,000 tons, up by 20% year on year. Nickel production for the second half year was 84,400 tons, up by 45% year on year.
BHP's lead production recovered 3% in the four quarter, hitting 63,073 tons, still down by 4% than the same period last year. The lead production for the half year was 124,433 tons, same as last year.
Its zinc output in the fourth quarter went up by 29% to 59,835 tons, up by 58% year on year. Its production for the half year was 106,260 tons, up by 33% year on year.
Source: Alibaba
Monday, January 25, 2010
Australian Firm Commences Coal Mining In India
Australian mining company India Resources Ltd. (IRL) is set to enter the Indian coal sector following an agreement entered into with Bankura DRI Ltd., a consortium of six sponge iron manufacturers who have been allocated a coal block in Ranigunj in West Bengal, IRL managing director Arvind Mishra said. An investment of around Rs 100 crores has been earmarked for this venture. The reserves are estimated at 95 million tons, he said. IRL, which is ASX-listed minerals developer, is currently operating in India, mining copper at the Surda mines of Hindustan Copper in Jharkhand where production has touched 37,000 tonnes in a mine which was closed for long.
Talking to reporters on the sidelines of a seminar during which presentations were made by Indian companies as well as Australian mining companies (as part of the 2010 Mining Exhibition), Mr. Mishra said that since 2007, his company had invested Rs. 130 crore in mining and exploration activities in India.
IRL has applied for licences for new copper mines near Udaipur in Rajasthan, besides applying for 15 exploration licences for iron ore in Orissa and Jharkhand. It has also applied for diamond exploration licences in Orissa, Andhra Pradesh and Madhya Pradesh. “We are already involved heavily in exploration activities in lead and zinc”.
On the agreement reached with Bankura DRI, Mr. Mishra said that this would be done on a build-develop and operate project with a concession period of 30 years. The mine allocated by the Union Coal Ministry has a reserve of 95 million tonnes and IRL hopes to produce five lakh tonnes within the third year from now. Most of the regulatory approvals were in place, he said.
However, the company which is into contracting as well as exploratory activities, is frustrated by the slow speed of the Indian system of governance and is more inclined to work with private sector companies now.
Source: The Hindu
Talking to reporters on the sidelines of a seminar during which presentations were made by Indian companies as well as Australian mining companies (as part of the 2010 Mining Exhibition), Mr. Mishra said that since 2007, his company had invested Rs. 130 crore in mining and exploration activities in India.
IRL has applied for licences for new copper mines near Udaipur in Rajasthan, besides applying for 15 exploration licences for iron ore in Orissa and Jharkhand. It has also applied for diamond exploration licences in Orissa, Andhra Pradesh and Madhya Pradesh. “We are already involved heavily in exploration activities in lead and zinc”.
On the agreement reached with Bankura DRI, Mr. Mishra said that this would be done on a build-develop and operate project with a concession period of 30 years. The mine allocated by the Union Coal Ministry has a reserve of 95 million tonnes and IRL hopes to produce five lakh tonnes within the third year from now. Most of the regulatory approvals were in place, he said.
However, the company which is into contracting as well as exploratory activities, is frustrated by the slow speed of the Indian system of governance and is more inclined to work with private sector companies now.
Source: The Hindu
SAIL Rules Out Price Reduction
The state-owned steel major Steel Authority of India (SAIL) today ruled out any reduction in domestic steel prices in the near-term, citing the firming global price trend and the rising input costs.
"As of now, the international prices are firm; scrap and coke prices are ruling high. So, I don't see any possibility of lowering the prices in the near-term...Iron ore prices have gone up...Putting some pressure on cost," SAIL Chairman S K Roongta told reporters here today.
Domestic steel firms, including SAIL and Tata Steel, had increased prices of their different products by up to Rs 4,500 a tonne in the past two months, raising inflationary concerns and prompting the government to term the price hike as speculative.
However, Steel Secretary Atul Chaturvedi had hoped otherwise and was anticipating some correction in the steel prices this month.
Terming the "Rs 8,000-10,000 a tonne" hike in the price of long steel products--used mainly by infrastructure and construction firms--in the past few months as "not warranted by market conditions," he said it got corrected by 3,000-4,000 a tonne recently.
"As far as SAIL is concerned we have not increased our long steel prices to the extent of the increase in the market price. So, we didn't have to rollback," Roongta said.
But, he maintained that SAIL will cut prices "as and when market conditions demand it".
On any likely increase in its input cost pressure next fiscal, SAIL chief Roongta said: "There is a possibility that long-term prices (of coking coal) may go up in the long-term."
"We don't import coke, but we import large quantities of coal. As of now, we have long-term contracts (till) March, but the new contracts have to be negotiated," he added.
Roongta further said the rise in input cost will hit steel producers without captive mining reserves. "Basically, iron ore prices are moving up. Since we have captive iron ore mines it will not hit us, but it will impact those producers who do not have backward integration towards mining."
"Also ferro-alloys like ferro-manganese, ferro-silicon, copper, zinc prices have moved up," he added.
Iron ore, coking coal along with the ferro-alloys are key input in making steel. Domestic steel prices are hovering in the range of Rs 26,000-35,000 tonne.
Source: Business Standard
"As of now, the international prices are firm; scrap and coke prices are ruling high. So, I don't see any possibility of lowering the prices in the near-term...Iron ore prices have gone up...Putting some pressure on cost," SAIL Chairman S K Roongta told reporters here today.
Domestic steel firms, including SAIL and Tata Steel, had increased prices of their different products by up to Rs 4,500 a tonne in the past two months, raising inflationary concerns and prompting the government to term the price hike as speculative.
However, Steel Secretary Atul Chaturvedi had hoped otherwise and was anticipating some correction in the steel prices this month.
Terming the "Rs 8,000-10,000 a tonne" hike in the price of long steel products--used mainly by infrastructure and construction firms--in the past few months as "not warranted by market conditions," he said it got corrected by 3,000-4,000 a tonne recently.
"As far as SAIL is concerned we have not increased our long steel prices to the extent of the increase in the market price. So, we didn't have to rollback," Roongta said.
But, he maintained that SAIL will cut prices "as and when market conditions demand it".
On any likely increase in its input cost pressure next fiscal, SAIL chief Roongta said: "There is a possibility that long-term prices (of coking coal) may go up in the long-term."
"We don't import coke, but we import large quantities of coal. As of now, we have long-term contracts (till) March, but the new contracts have to be negotiated," he added.
Roongta further said the rise in input cost will hit steel producers without captive mining reserves. "Basically, iron ore prices are moving up. Since we have captive iron ore mines it will not hit us, but it will impact those producers who do not have backward integration towards mining."
"Also ferro-alloys like ferro-manganese, ferro-silicon, copper, zinc prices have moved up," he added.
Iron ore, coking coal along with the ferro-alloys are key input in making steel. Domestic steel prices are hovering in the range of Rs 26,000-35,000 tonne.
Source: Business Standard
Vitol Takes Capacity At Colombia Coal Mine
Global energy trader Vitol has signed a four-year deal to take 1 million tonnes of export capacity at Colombia's 3 million tonnes a year Carbonsan port in Santa Marta, sources familiar with the deal said on Monday.
Vitol has been seeking coal mining and logistical assets in key exporting countries for the past several years.
Colombia is the world's fifth-largest coal exporter and ships around 61 million tonnes of thermal coal a year to Europe, the United States. and increasingly to Asia.
Colombian coal producer Coalcorp Mining Inc (CCJ.TO) is still for sale despite agreeing to sell its La Francia mine to a to a Goldman Sachs Group (GS.N) subsidiary in a deal worth $200 million [ID:nSGE6060ED], the sources said.
The Goldman sale may not be concluded and other potential buyers are still circling, including Vitol and traders Glencore, the sources said.
"If I was Goldman, I wouldn't be happy about buying a mine on the assumption that there's port access and now there isn't any," a Colombian industry source said.
"The Vitol deal is a take-or-pay contract and it'd be difficult to fill that capacity without coal from Goldman," the source said.
Coalcorp's mine assets would be difficult to run profitably without deep experience of Colombian coal industry and strong logistics, they said.
The La Francia mine will be difficult to develop because it its reserves are a few kilometres from a town and the coal quality is below original expectations, they added.
Coal from the Caypa mine is high-quality but the production is small and needs to be blended with other coals.
The company said in a statement on its website on Jan. 21 there would be a special shareholders' meeting on Feb. 11 to discuss the Goldman deal and subject it to a vote.
Coalcorp exports via Carbosan in Santa Marta. If the Goldman deal is concluded, Goldman will have to negotiate use of the Santa Marta port with Vitol, the sources said.
As part of the deal, Coalcorp will supply about 2.4 million tonnes a year of thermal coal to Goldman.
Goldman is one of the banks which have become significant players in physical coal trading. The majority of Constellation Energy Group's (CEG.N) physical coal traders joined Goldman when Constellation sold its London-based commodity business to Goldman last year.
Source: Reuters
Vitol has been seeking coal mining and logistical assets in key exporting countries for the past several years.
Colombia is the world's fifth-largest coal exporter and ships around 61 million tonnes of thermal coal a year to Europe, the United States. and increasingly to Asia.
Colombian coal producer Coalcorp Mining Inc (CCJ.TO) is still for sale despite agreeing to sell its La Francia mine to a to a Goldman Sachs Group (GS.N) subsidiary in a deal worth $200 million [ID:nSGE6060ED], the sources said.
The Goldman sale may not be concluded and other potential buyers are still circling, including Vitol and traders Glencore, the sources said.
"If I was Goldman, I wouldn't be happy about buying a mine on the assumption that there's port access and now there isn't any," a Colombian industry source said.
"The Vitol deal is a take-or-pay contract and it'd be difficult to fill that capacity without coal from Goldman," the source said.
Coalcorp's mine assets would be difficult to run profitably without deep experience of Colombian coal industry and strong logistics, they said.
The La Francia mine will be difficult to develop because it its reserves are a few kilometres from a town and the coal quality is below original expectations, they added.
Coal from the Caypa mine is high-quality but the production is small and needs to be blended with other coals.
The company said in a statement on its website on Jan. 21 there would be a special shareholders' meeting on Feb. 11 to discuss the Goldman deal and subject it to a vote.
Coalcorp exports via Carbosan in Santa Marta. If the Goldman deal is concluded, Goldman will have to negotiate use of the Santa Marta port with Vitol, the sources said.
As part of the deal, Coalcorp will supply about 2.4 million tonnes a year of thermal coal to Goldman.
Goldman is one of the banks which have become significant players in physical coal trading. The majority of Constellation Energy Group's (CEG.N) physical coal traders joined Goldman when Constellation sold its London-based commodity business to Goldman last year.
Source: Reuters
Sunday, January 24, 2010
BHP "May Quite Iron Ore Talks"
It is reported that leading iron ore supplier BHP Billiton has recently announced that the company is planning to turn to short-term pricing negotiation, indicating that it may quit the global iron ore long term benchmark pricing negotiation and continue to promote its iron ore index price.
BHP Billiton reported recently that in the Q4 of 2009, 46% of iron ore it exported from Australia was priced through short-term negotiation. In July 2009 the figure was only 30%.
Mr Zhang Ping, an analyst with umetal.com, said that the BHP Billiton announcement can be understood as a negotiating strategy. He believes that the company won't quit the global negotiations, but it can add pressure on Chinese steel mills by doing this.
He said that China's discourse power in the iron ore pricing negotiation will remain limited in a couple of years, but it will win some pricing power after 2012.
Mr Zhang said Chinese enterprises are actively buying overseas resources. Iron ore supply will see a significant rise in 2 years and the global mining giants dominating position will be weakened. In addition, China steel industry will finish its restructuring and the country demand for steel will not see huge increase by then.
Source: Steel Guru/People's Daily
BHP Billiton reported recently that in the Q4 of 2009, 46% of iron ore it exported from Australia was priced through short-term negotiation. In July 2009 the figure was only 30%.
Mr Zhang Ping, an analyst with umetal.com, said that the BHP Billiton announcement can be understood as a negotiating strategy. He believes that the company won't quit the global negotiations, but it can add pressure on Chinese steel mills by doing this.
He said that China's discourse power in the iron ore pricing negotiation will remain limited in a couple of years, but it will win some pricing power after 2012.
Mr Zhang said Chinese enterprises are actively buying overseas resources. Iron ore supply will see a significant rise in 2 years and the global mining giants dominating position will be weakened. In addition, China steel industry will finish its restructuring and the country demand for steel will not see huge increase by then.
Source: Steel Guru/People's Daily
Friday, January 22, 2010
NMDC Expresses Concern Over India Iron Ore Stocks
Expressing concern over depleting iron ore reserves in India, the chairman and managing director (CMD) of the state-owned NMDC, Rana Som, today said there should be a national consensus and policy on iron ore production and export.
"Let there be a national consensus and policy on iron ore production and export," he said while speaking at the technical session of the third Asian Mining Congress here.
According to a study by the American zeological survey, India has 9.8 billion tonnes of iron ore of which 6.6 billion tonnes were proven reserves, he said. This would last for 30 years.
Australia on the other hand has 45 billion tonnes and Brazil 33 billion tonnes of iron ore reserves, he said.
Laying stress on more exploration of iron ore, Som regretted that in India only a meagre amount was spent for this purpose.
NMDC on its part, he said, was giving stress on export activities.
He said that NMDC had offered to do free mapping of mineral reserves in Jharkhand through exploration.
"There is a huge area which needs to be explored to find out the exact amount of the mineral reserves especially iron ores in Jharkhand," he said.
Source: Business Standard
"Let there be a national consensus and policy on iron ore production and export," he said while speaking at the technical session of the third Asian Mining Congress here.
According to a study by the American zeological survey, India has 9.8 billion tonnes of iron ore of which 6.6 billion tonnes were proven reserves, he said. This would last for 30 years.
Australia on the other hand has 45 billion tonnes and Brazil 33 billion tonnes of iron ore reserves, he said.
Laying stress on more exploration of iron ore, Som regretted that in India only a meagre amount was spent for this purpose.
NMDC on its part, he said, was giving stress on export activities.
He said that NMDC had offered to do free mapping of mineral reserves in Jharkhand through exploration.
"There is a huge area which needs to be explored to find out the exact amount of the mineral reserves especially iron ores in Jharkhand," he said.
Source: Business Standard
China's Steel Production For 2009: 567mn Tonnes
China's crude steel output rose 13.5 percent in 2009, official data shows, which analysts say could weaken the position of the nation's steel mills in this year's iron ore contract price negotiations.
Production reached 567.8 million tonnes last year, according to figures released by the National Bureau of Statistics on Thursday, partly due to massive public spending on infrastructure projects.
Analysts said the figure was a record and may increase pressure on Beijing to accept higher prices for iron ore -- the key ingredient used to make steel -- during talks with the world's major miners.
"In a situation where the industry is expected to increase output and its demand for iron ore, this impacts the iron ore price talks," Fitch Ratings analyst Lim Su Aik told AFP.
Lim said steel output could reach 600 million tonnes this year.
"The fiscal stimulus policy is still in place and the infrastructure projects are very much driven by government spending and that is one key driver for steel demand," Lim said.
China's iron ore imports surged 41.6 percent to 627.8 million tonnes in 2009, with the value falling 17.4 percent as prices were hit by the global downturn, customs data shows.
Lim said he expected iron ore prices to rise 15 to 20 percent in 2010 from the previous year due to stronger demand in China and the rest of the world.
China's relations with the world's biggest miners -- BHP Billiton, Rio Tinto and Vale -- remain tainted by the arrest in July of four Rio employees in Shanghai for alleged industrial espionage.
The four -- Australian passport-holder Stern Hu and three Chinese workers -- are still in detention pending trial.
Australian media reported this week that substantive talks between the miners and China were yet to take place.
Another analyst said there was "no chance in the short term" for China to take the upper hand in annual price negotiations given its huge appetite for iron ore.
"It is the huge demand (from China) that drives up prices," said the analyst who declined to be named due to the sensitivity of the talks.
"There are three major sellers but the Chinese market is too fractured so it is impossible for the buyers to have too much bargaining power."
Source: AFP
Production reached 567.8 million tonnes last year, according to figures released by the National Bureau of Statistics on Thursday, partly due to massive public spending on infrastructure projects.
Analysts said the figure was a record and may increase pressure on Beijing to accept higher prices for iron ore -- the key ingredient used to make steel -- during talks with the world's major miners.
"In a situation where the industry is expected to increase output and its demand for iron ore, this impacts the iron ore price talks," Fitch Ratings analyst Lim Su Aik told AFP.
Lim said steel output could reach 600 million tonnes this year.
"The fiscal stimulus policy is still in place and the infrastructure projects are very much driven by government spending and that is one key driver for steel demand," Lim said.
China's iron ore imports surged 41.6 percent to 627.8 million tonnes in 2009, with the value falling 17.4 percent as prices were hit by the global downturn, customs data shows.
Lim said he expected iron ore prices to rise 15 to 20 percent in 2010 from the previous year due to stronger demand in China and the rest of the world.
China's relations with the world's biggest miners -- BHP Billiton, Rio Tinto and Vale -- remain tainted by the arrest in July of four Rio employees in Shanghai for alleged industrial espionage.
The four -- Australian passport-holder Stern Hu and three Chinese workers -- are still in detention pending trial.
Australian media reported this week that substantive talks between the miners and China were yet to take place.
Another analyst said there was "no chance in the short term" for China to take the upper hand in annual price negotiations given its huge appetite for iron ore.
"It is the huge demand (from China) that drives up prices," said the analyst who declined to be named due to the sensitivity of the talks.
"There are three major sellers but the Chinese market is too fractured so it is impossible for the buyers to have too much bargaining power."
Source: AFP
Norway Iron Ore Project Comes Closer For Northern Iron
Success in raising $14.3 million through a placement will rejuvenate progress at WA-based Northern Iron's promising iron ore project in Norway.
Northern Iron, which is back on the boards today after a trading halt, raised the funds as part of a $55.3 million equity raising that included Perth-based OM Holdings agreeing to take shares equal to a 10 per cent share in the company.
Its Norwegian Sydvaranger project, which aims to supply iron ore to European markets, has been dogged by plant issues which has affected product quality and throughput.
The institutional placement will fund an overhaul of the plant and repair these problems.
In the quarter ended December 31, Northern Iron mined 378,000 tonnes, up 10 per cent on the previous quarter, with concentrate production of 197,000 tonnes.
The first sale of the product were made during the quarter but because of reduced quality, these were shipped to China. European sales are expected when the plant and quality improve.
OM Holdings and Northern Iron now work together in rectifying Sydvaranger's issues and are negotiating for a formal marketing agreement over sales into Asia.
OM Holdings said Sydvaranger has ``the potential to become an independent long-life world-class emerging iron-ore opportunity''.
``OMH's commodity diversification strategy incorporating this investment is in line with its stated objective of building a significant carbon-steel materials business,'' said OM Holding's CEO Peter Toth.
``This investment is also viewed as strategically important and complementary to OMH's existing operations within the global steel materials market.''
Mr Toth said OMH would assist Northern Iron to penetrate the growing Asian market and facilitate in extracting maximum value from Northern Iron's production.
``Short and long-term synergies have been identified between the two companies and OMH considers that this investment will provide an excellent platform on which these synergies can be executed,'' he said.
``The Sydvaranger iron ore project hs a number of competitive advantages relative to many of its respective sized peers, predominantly driven by the size and quality of its resource, its established infrastructure base, long mine life, historically proven iron concentrate product, independent competitiveness in major steel markets and potential for future expansion opportunities.'
Source: Perth Now
Northern Iron, which is back on the boards today after a trading halt, raised the funds as part of a $55.3 million equity raising that included Perth-based OM Holdings agreeing to take shares equal to a 10 per cent share in the company.
Its Norwegian Sydvaranger project, which aims to supply iron ore to European markets, has been dogged by plant issues which has affected product quality and throughput.
The institutional placement will fund an overhaul of the plant and repair these problems.
In the quarter ended December 31, Northern Iron mined 378,000 tonnes, up 10 per cent on the previous quarter, with concentrate production of 197,000 tonnes.
The first sale of the product were made during the quarter but because of reduced quality, these were shipped to China. European sales are expected when the plant and quality improve.
OM Holdings and Northern Iron now work together in rectifying Sydvaranger's issues and are negotiating for a formal marketing agreement over sales into Asia.
OM Holdings said Sydvaranger has ``the potential to become an independent long-life world-class emerging iron-ore opportunity''.
``OMH's commodity diversification strategy incorporating this investment is in line with its stated objective of building a significant carbon-steel materials business,'' said OM Holding's CEO Peter Toth.
``This investment is also viewed as strategically important and complementary to OMH's existing operations within the global steel materials market.''
Mr Toth said OMH would assist Northern Iron to penetrate the growing Asian market and facilitate in extracting maximum value from Northern Iron's production.
``Short and long-term synergies have been identified between the two companies and OMH considers that this investment will provide an excellent platform on which these synergies can be executed,'' he said.
``The Sydvaranger iron ore project hs a number of competitive advantages relative to many of its respective sized peers, predominantly driven by the size and quality of its resource, its established infrastructure base, long mine life, historically proven iron concentrate product, independent competitiveness in major steel markets and potential for future expansion opportunities.'
Source: Perth Now
China To Eliminate Outdated Production Capacity
The government will step up efforts to eliminate outdated production capacity, said a statement issued by the State Council on Wednesday.
Eliminating outmoded production capacity was imperative to transform the economic growth pattern, boost economic growth quality and fight the global downturn, said the statement issued after a State Council executive meeting chaired by Premier Wen Jiabao.
Eliminating outdated production capacity was also necessary to promote energy efficiency and emissions cuts and address global climate change, the statement said.
China had made positive progress in eliminating outdated production capacity, but the proportion of outdated capacity was still too high in certain key fields, said the statement.
The problems should be tackled through the law, economics, technology and necessary administrative methods.
The State Council discussed specific targets to eliminate outdated capacity in fields such as electricity, coal, coke, ferroalloy, calcium carbide, iron and steel, non-ferrous metals, construction materials and light industry and textile industry.
To realize the targets, efforts should be made to improve market admission requirements, use market mechanisms, strengthen law enforcement, promote stimulus mechanisms and step up supervision, according to the decision reached at the meeting.
Source: Xinhua
Eliminating outmoded production capacity was imperative to transform the economic growth pattern, boost economic growth quality and fight the global downturn, said the statement issued after a State Council executive meeting chaired by Premier Wen Jiabao.
Eliminating outdated production capacity was also necessary to promote energy efficiency and emissions cuts and address global climate change, the statement said.
China had made positive progress in eliminating outdated production capacity, but the proportion of outdated capacity was still too high in certain key fields, said the statement.
The problems should be tackled through the law, economics, technology and necessary administrative methods.
The State Council discussed specific targets to eliminate outdated capacity in fields such as electricity, coal, coke, ferroalloy, calcium carbide, iron and steel, non-ferrous metals, construction materials and light industry and textile industry.
To realize the targets, efforts should be made to improve market admission requirements, use market mechanisms, strengthen law enforcement, promote stimulus mechanisms and step up supervision, according to the decision reached at the meeting.
Source: Xinhua
Bloomberg reports that Xstrata Plc, the world’s largest exporter of power-station coal, said its coal unit has asked suppliers to operations in Queensland, Australia, to cut prices by 20 percent if possible.
The majority of those contacted are long-term suppliers whose contracts will remain in place, Xstrata Coal spokesman James Rickards wrote in an e-mailed response to questions. The company aims to curb costs, he said.
The Brisbane-based Courier Mail reported earlier that Xstrata took the measure because coking coal revenue had lagged behind higher prices for materials such as explosives and fuel. It cited an unidentified Xstrata spokesman.
“This request relates only to Xstrata Coal Queensland,” Claire Divver, a spokeswoman for Xstrata in London, said in an e-mailed response to queries from Bloomberg.
Source: Bloomberg
The majority of those contacted are long-term suppliers whose contracts will remain in place, Xstrata Coal spokesman James Rickards wrote in an e-mailed response to questions. The company aims to curb costs, he said.
The Brisbane-based Courier Mail reported earlier that Xstrata took the measure because coking coal revenue had lagged behind higher prices for materials such as explosives and fuel. It cited an unidentified Xstrata spokesman.
“This request relates only to Xstrata Coal Queensland,” Claire Divver, a spokeswoman for Xstrata in London, said in an e-mailed response to queries from Bloomberg.
Source: Bloomberg
Thursday, January 21, 2010
African Minerals Raises GBP80 Million For Sierra Leone Iron Ore Project
London-listed African Minerals has raised £80-million in a cash placing, which it will use to fund the construction of key infrastructure at its Tonkolili iron-ore project in Sierra Leone.
African Minerals said institutional investors would underwrite 20-million new shares at 400p a share and that China Railway Materials (CRM) would have an option to subscribe in cash for up to 2,88-million new shares, representing 14,4% of the placing.
Earlier this month, African Minerals signed a deal with CRM, whereby the Chinese company would buy a 12,5% stake in African Minerals for £152,6-million, providing the majority of funding required for the Tonkolili project.
Chairperson Frank Timis said the proceeds of the £80-million placing would allow African Minerals to expedite the construction of the critical infrastructure required for the first phase of the Tonkolili project.
It would start construction of a haul road to transport haematite iron-ore from the Tonkolili mine site to the rail head at Lunsar and would use part of the proceeds to pre-order major long-lead items for the refurbishment of Pepel port and the railway to Lunsar.
"This fund raising, together with the conditional CRM equity deal and two off-take agreements, places the company in a very strong position to realise iron ore production from Tonkolili during the first quarter of 2011," Timis added.
The placing is conditional upon the completion of a due diligence exercise by the underwriters, the entering into a formal underwriting agreement with the underwriters and such agreement becoming unconditional and the admission of the new shares to trading on AIM.
"We are pleased with the continued support that premier institutional investors in North America and the United Kingdom have given the company," Timis concluded.
Subsequent to the placing, but excluding the CRM option, the company will have 233, 639,654 common shares in issue.
Source: Mining Weekly
African Minerals said institutional investors would underwrite 20-million new shares at 400p a share and that China Railway Materials (CRM) would have an option to subscribe in cash for up to 2,88-million new shares, representing 14,4% of the placing.
Earlier this month, African Minerals signed a deal with CRM, whereby the Chinese company would buy a 12,5% stake in African Minerals for £152,6-million, providing the majority of funding required for the Tonkolili project.
Chairperson Frank Timis said the proceeds of the £80-million placing would allow African Minerals to expedite the construction of the critical infrastructure required for the first phase of the Tonkolili project.
It would start construction of a haul road to transport haematite iron-ore from the Tonkolili mine site to the rail head at Lunsar and would use part of the proceeds to pre-order major long-lead items for the refurbishment of Pepel port and the railway to Lunsar.
"This fund raising, together with the conditional CRM equity deal and two off-take agreements, places the company in a very strong position to realise iron ore production from Tonkolili during the first quarter of 2011," Timis added.
The placing is conditional upon the completion of a due diligence exercise by the underwriters, the entering into a formal underwriting agreement with the underwriters and such agreement becoming unconditional and the admission of the new shares to trading on AIM.
"We are pleased with the continued support that premier institutional investors in North America and the United Kingdom have given the company," Timis concluded.
Subsequent to the placing, but excluding the CRM option, the company will have 233, 639,654 common shares in issue.
Source: Mining Weekly
China Shenhua Coal Yield Tops 210 Mn Tonnes For 2009
China Shenhua Energy Co., Ltd. yielded 210 million tons of commodity coal in 2009, hiking 13.2% year on year, the Chinese energy titan announced today in a data report.
The company turned out 17.4 million tons of coal in December 2009, up 9.4% from a year ago. Moreover, it sold 254 million tons of coal in 2009, up 9.3%. And 22.4 million tons of it was sold in December alone, decreasing 5.9%.
Last year, Shenhua Energy's coal export dropped 35.8% to 13.6 million tons, due to coal demand decline globally. Its self-owned railway transport volume escalated 12.1% to 138.2 billion ton-kilometers; and seaborne coal transport volume jumped 14.2% to 159 million tons. Its seaborne coal transport volumes separately hit 21.7 million tons and 7.78 million tons in the Tianjin coal wharf and the port of Huanghua, down 5.2% and 0.5%, respectively.
Total power generation of the company increased 7.5% to 105.09 million kilowatt-hours last year; and power sales capacity climbed 8.2% to 97.72 million kilowatt-hours.
The company turned out 17.4 million tons of coal in December 2009, up 9.4% from a year ago. Moreover, it sold 254 million tons of coal in 2009, up 9.3%. And 22.4 million tons of it was sold in December alone, decreasing 5.9%.
Last year, Shenhua Energy's coal export dropped 35.8% to 13.6 million tons, due to coal demand decline globally. Its self-owned railway transport volume escalated 12.1% to 138.2 billion ton-kilometers; and seaborne coal transport volume jumped 14.2% to 159 million tons. Its seaborne coal transport volumes separately hit 21.7 million tons and 7.78 million tons in the Tianjin coal wharf and the port of Huanghua, down 5.2% and 0.5%, respectively.
Total power generation of the company increased 7.5% to 105.09 million kilowatt-hours last year; and power sales capacity climbed 8.2% to 97.72 million kilowatt-hours.
Turkey Imported 84 Per Cent More Ferroalloys In November
According to the customs statistics compiled by the Turkish Statistical Institute (TUIK), in November 2009 Turkey imported 32,837 metric tons of ferroalloys, increasing its imports of the products in question by 84.48 percent compared to October.
In November, of the various ferroalloys, the country's ferromanganese imports increased by 2.5 times, reaching 3,289 metric tons, ferrosilicon imports totaled 5,805 metric tons, rising by 43.48 percent, while ferrosilicomanganese imports amounted to 22,173 metric tons, up 89.32 percent, all compared to October.
Source: Steel Orbis
In November, of the various ferroalloys, the country's ferromanganese imports increased by 2.5 times, reaching 3,289 metric tons, ferrosilicon imports totaled 5,805 metric tons, rising by 43.48 percent, while ferrosilicomanganese imports amounted to 22,173 metric tons, up 89.32 percent, all compared to October.
Source: Steel Orbis
Kazzinc To Double Copper Capacity In 2010
Kazakh metals firm Kazzinc said on Thursday it will launch a new copper facility this year with a capacity of 70,000 tonnes a year.
Kazzinc's primary product is zinc but the company, which is controlled by Switzerland's Glencore, also produces copper, lead, silver and gold. The firm competes with London-listed Kazakhmys, which focuses on copper.
"Kazzinc's main investment project in 2010 will be the launch of a new copper production facility at the Ust-Kamenogorsk metals combine with a base capacity of 70,000 tonnes of copper a year," it said in a written response to questions from Reuters.
Kazzinc last year produced 301,104 tonnes of zinc, 79,041 tonnes of refined lead, 57,420 tonnes of copper, 231,259 Troy ounces of gold and 4.8 million Troy ounces of silver.
"Kazzinc does not plan to reduce production volumes in 2010," the company said.
Kazzinc said it would also complete the upgrade of its lead facility this year and would spend a total of $700 million on copper and lead projects, to be financed partly by bank loans.
Several Kazakh metals producers cut output in 2009 after the slump in commodity prices but overall output started recovering by the end of last year.
Source: Reuters
Kazzinc's primary product is zinc but the company, which is controlled by Switzerland's Glencore, also produces copper, lead, silver and gold. The firm competes with London-listed Kazakhmys, which focuses on copper.
"Kazzinc's main investment project in 2010 will be the launch of a new copper production facility at the Ust-Kamenogorsk metals combine with a base capacity of 70,000 tonnes of copper a year," it said in a written response to questions from Reuters.
Kazzinc last year produced 301,104 tonnes of zinc, 79,041 tonnes of refined lead, 57,420 tonnes of copper, 231,259 Troy ounces of gold and 4.8 million Troy ounces of silver.
"Kazzinc does not plan to reduce production volumes in 2010," the company said.
Kazzinc said it would also complete the upgrade of its lead facility this year and would spend a total of $700 million on copper and lead projects, to be financed partly by bank loans.
Several Kazakh metals producers cut output in 2009 after the slump in commodity prices but overall output started recovering by the end of last year.
Source: Reuters
African Copper Ups Capacity At Botswana
Aim-listed African Copper will install a mobile crushing unit and amend the environmental management plan (EMP) at its Mowana mine to remove bottlenecks hampering the ramp-up to full capacity, the miner reported on Thursday.
African Copper reopened the Botswana mine in August and reached "encouraging" levels of production in October and November, but lower plant availability had impacted on output in December and January, said executive director Jordan Soko.
The plant had produced 4,3-million tons of concentrate, at an average grade of 1,30% copper for 1,19-million tons of copper contained in concentrate, since recommissioning in late August.
Copper recoveries increased in October and November, reaching 57,3% in November, in line with African Copper's targeted recovery rate of 57%, before declining, together with ore processed, due to lower plant availability.
The miner explained that lower secondary and tertiary plant availability was caused by high crusher liner wear and heavy rain that affected the consistency of the ore and hindered the flow of material from stockpiles. Plant throughput was also cut by the inability of the horizontal belt filter to consistently handle and produce dry tailings.
African Copper had placed an order for the rental of a mobile crushing unit, which would temporarily bypass the secondary and tertiary crushing plant, while it worked on incorporating an improved feed arrangement for these crushers.
"The mobile crushing unit will have a crushing capacity equivalent to the current secondary and tertiary crushing plant in order to process the appropriate volumes while the primary crusher continues to function well," it noted.
Delivery and installation of the mobile crushing unit would be completed in four weeks.
Further, African Copper is amending the EMP to migrate from a dry to a wet tailings system.
Scott Wilson RPA Mining group is undertaking design work on the new tailings facility, while the EMP amendment is under way, in order for construction to start as soon as Botswana approved the changes to the plan. The company expects authorities to approve the EMP amendments in April.
Source: Mining Weekly
African Copper reopened the Botswana mine in August and reached "encouraging" levels of production in October and November, but lower plant availability had impacted on output in December and January, said executive director Jordan Soko.
The plant had produced 4,3-million tons of concentrate, at an average grade of 1,30% copper for 1,19-million tons of copper contained in concentrate, since recommissioning in late August.
Copper recoveries increased in October and November, reaching 57,3% in November, in line with African Copper's targeted recovery rate of 57%, before declining, together with ore processed, due to lower plant availability.
The miner explained that lower secondary and tertiary plant availability was caused by high crusher liner wear and heavy rain that affected the consistency of the ore and hindered the flow of material from stockpiles. Plant throughput was also cut by the inability of the horizontal belt filter to consistently handle and produce dry tailings.
African Copper had placed an order for the rental of a mobile crushing unit, which would temporarily bypass the secondary and tertiary crushing plant, while it worked on incorporating an improved feed arrangement for these crushers.
"The mobile crushing unit will have a crushing capacity equivalent to the current secondary and tertiary crushing plant in order to process the appropriate volumes while the primary crusher continues to function well," it noted.
Delivery and installation of the mobile crushing unit would be completed in four weeks.
Further, African Copper is amending the EMP to migrate from a dry to a wet tailings system.
Scott Wilson RPA Mining group is undertaking design work on the new tailings facility, while the EMP amendment is under way, in order for construction to start as soon as Botswana approved the changes to the plan. The company expects authorities to approve the EMP amendments in April.
Source: Mining Weekly
International Ferro Metals Output Up 85 Per Cent In Second Quarter
South African-based International Ferro Metals Ltd gave an upbeat view of prices and Chinese demand after posting an 85 percent jump in second-quarter output due to the restart of a furnace.
The London-listed firm's shares jumped as much as 11 percent on Thursday after it said the sector was rebounding after being hard-hit from the global downturn last year.
Producers of ferrochrome, a key component in stainless steel, slashed output early last year, closing down furnaces, as demand sunk, but much of the capacity in the sector has been restarted.
"Since the beginning of the year, stainless steel production utilisation levels, particularly in China, have increased," Chief Executive David Kovarsky told a conference call.
"What we're seeing ... is that Chinese spot prices are outpacing this quarter's (European) contract price."
The first quarter contract price in Europe fell 2 cents to $1.01 per lb, but is expected to rise in the second quarter. The price peaked at $2.05 a lb in the third quarter of 2008.
"The spot price is indicating an increase (in the Q2 contract price), to what level, I'm not sure," Kovarsky added.
"We believe that management's decision to build inventory while ferrochrome prices and production costs are low should allow IFM to take advantage of a recovery in the ferrochrome price during 2010," analyst Mike Stuart said.
Inventories rose to 32,504 tonnes from 9,752 tonnes three months earlier because the firm wanted to wait for higher prices, Kovarsky said.
He hoped to wait until the June quarter to sell off the stocks, but might unload some of it in the current quarter if customers needed material, he added.
Ferrochrome production rose to 57,942 tonnes in the last three months of 2009, following the restart of a furnace in August, from 31,289 tonnes in the same period the previous year.
Sales rose by 61 percent, less than growth in output due to the stockpiling.
The firm had a net cash balance of 248 million rand at the end of the year, which was more than enough to cover expected capital expenditure of about 100 million rand for the remainder of the fiscal year, Kovarsky said.
Last September, IFM swung to a loss for its fiscal year to end-June on lower output and prices of ferrochrome, a key ingredient in stainless steel.
The world's biggest ferrochrome producers are Xstrata and ENRC.
Source: Reuters
The London-listed firm's shares jumped as much as 11 percent on Thursday after it said the sector was rebounding after being hard-hit from the global downturn last year.
Producers of ferrochrome, a key component in stainless steel, slashed output early last year, closing down furnaces, as demand sunk, but much of the capacity in the sector has been restarted.
"Since the beginning of the year, stainless steel production utilisation levels, particularly in China, have increased," Chief Executive David Kovarsky told a conference call.
"What we're seeing ... is that Chinese spot prices are outpacing this quarter's (European) contract price."
The first quarter contract price in Europe fell 2 cents to $1.01 per lb, but is expected to rise in the second quarter. The price peaked at $2.05 a lb in the third quarter of 2008.
"The spot price is indicating an increase (in the Q2 contract price), to what level, I'm not sure," Kovarsky added.
"We believe that management's decision to build inventory while ferrochrome prices and production costs are low should allow IFM to take advantage of a recovery in the ferrochrome price during 2010," analyst Mike Stuart said.
Inventories rose to 32,504 tonnes from 9,752 tonnes three months earlier because the firm wanted to wait for higher prices, Kovarsky said.
He hoped to wait until the June quarter to sell off the stocks, but might unload some of it in the current quarter if customers needed material, he added.
Ferrochrome production rose to 57,942 tonnes in the last three months of 2009, following the restart of a furnace in August, from 31,289 tonnes in the same period the previous year.
Sales rose by 61 percent, less than growth in output due to the stockpiling.
The firm had a net cash balance of 248 million rand at the end of the year, which was more than enough to cover expected capital expenditure of about 100 million rand for the remainder of the fiscal year, Kovarsky said.
Last September, IFM swung to a loss for its fiscal year to end-June on lower output and prices of ferrochrome, a key ingredient in stainless steel.
The world's biggest ferrochrome producers are Xstrata and ENRC.
Source: Reuters
South Africa May Miss Out In Commodities Rebound
Commodity prices are expected to rebound strongly this year and pull the global mining industry out of the doldrums, despite uncertainty about the pace of world economic recovery, according to research and consulting firm Frost & Sullivan.
However, this comes amid lingering concern that challenges particular to the South African industry — such as a strong rand, higher production costs and labour wage demands — may put a damper on local prospects.
Last year, mining companies were forced to retrench and restructure their cost bases in response to plummeting demand as a result of the global recession. However, towards the end of the year some — particularly ferrochrome miners — began increasing production as demand slowly started to improve, led by Chinese buyers.
Mining and metals analyst Wonder Nyanjowa said this week that the global mining industry was likely to be buoyed by growing physical demand for commodities, the strong possibility of speculative buying and rising prices.
“This is likely to encourage miners to expand production capacity,” Nyanjowa said.
Metals such as gold, diamonds, platinum and palladium have already started to show signs of a strong rebound. Nyanjowa warned that SA may not reap the full benefits of this price recovery because of several problems.
“Many of the local challenges that adversely affected production last year, such as electricity supply shortages, a lack of skills and safety concerns, are likely to continue affecting the performance of the mining industry this year.
“In addition, the prospect of higher commodity prices, particularly in the gold, platinum and coal sectors, is likely to lead to tough wage demands from unions.”
Nyanjowa said he believed that growing concern about inflation in the developed world, a volatile dollar, threats of another recession from expansionary fiscal and monetary policies and negative real interest rates pointed towards strengthening investment demand for gold as a buffer.
“A price range of 1300- 1500/oz this year looks likely, supported by gold demand and supply fundamentals,” he said. “Investors are likely to continue turning to gold as a hedge against uncertainties in the global economy.”
However, SA’s gold production was likely to slip further this year, to about 200 tons, which should see the country drop to fourth place among the world’s gold producers, behind China, the US and Australia. Last year SA fell in the production stakes from second spot to third, behind China and Australia.
While platinum was one of the biggest casualties of the global recession, Nyanjowa expected better prospects this year, with the industry expected to recover as a result of stronger recovery in the global automotive sector, particularly in China and India.
Local coal miners, which escaped from the global slowdown with relatively minor bruises, should also remain robust.
“The bulk of the country’s coal production is consumed in the electricity generation and synthetic fuel manufacturing industries, with only a third being exported to Europe and Asia,” Nyanjowa said.
“The domestic demand for coal is set to continue growing in 2010, following expansion programmes at Eskom and Sasol that will require an additional 75- million tons of coal.”
However, SA’s production was likely to remain stagnant at about 240-million tons this year as the industry waited for new coal fields to be opened in the Waterberg basin in Limpopo.
Source: Business Day
However, this comes amid lingering concern that challenges particular to the South African industry — such as a strong rand, higher production costs and labour wage demands — may put a damper on local prospects.
Last year, mining companies were forced to retrench and restructure their cost bases in response to plummeting demand as a result of the global recession. However, towards the end of the year some — particularly ferrochrome miners — began increasing production as demand slowly started to improve, led by Chinese buyers.
Mining and metals analyst Wonder Nyanjowa said this week that the global mining industry was likely to be buoyed by growing physical demand for commodities, the strong possibility of speculative buying and rising prices.
“This is likely to encourage miners to expand production capacity,” Nyanjowa said.
Metals such as gold, diamonds, platinum and palladium have already started to show signs of a strong rebound. Nyanjowa warned that SA may not reap the full benefits of this price recovery because of several problems.
“Many of the local challenges that adversely affected production last year, such as electricity supply shortages, a lack of skills and safety concerns, are likely to continue affecting the performance of the mining industry this year.
“In addition, the prospect of higher commodity prices, particularly in the gold, platinum and coal sectors, is likely to lead to tough wage demands from unions.”
Nyanjowa said he believed that growing concern about inflation in the developed world, a volatile dollar, threats of another recession from expansionary fiscal and monetary policies and negative real interest rates pointed towards strengthening investment demand for gold as a buffer.
“A price range of 1300- 1500/oz this year looks likely, supported by gold demand and supply fundamentals,” he said. “Investors are likely to continue turning to gold as a hedge against uncertainties in the global economy.”
However, SA’s gold production was likely to slip further this year, to about 200 tons, which should see the country drop to fourth place among the world’s gold producers, behind China, the US and Australia. Last year SA fell in the production stakes from second spot to third, behind China and Australia.
While platinum was one of the biggest casualties of the global recession, Nyanjowa expected better prospects this year, with the industry expected to recover as a result of stronger recovery in the global automotive sector, particularly in China and India.
Local coal miners, which escaped from the global slowdown with relatively minor bruises, should also remain robust.
“The bulk of the country’s coal production is consumed in the electricity generation and synthetic fuel manufacturing industries, with only a third being exported to Europe and Asia,” Nyanjowa said.
“The domestic demand for coal is set to continue growing in 2010, following expansion programmes at Eskom and Sasol that will require an additional 75- million tons of coal.”
However, SA’s production was likely to remain stagnant at about 240-million tons this year as the industry waited for new coal fields to be opened in the Waterberg basin in Limpopo.
Source: Business Day
Fortescue Sales Up 44 Per Cent In Second Quarter
Fortescue Metals Group Ltd., Australia’s third-largest iron ore exporter, said second-quarter shipments jumped 44 percent on record demand from Chinese mills.
Shipments reached 9.1 million metric tons in the three months ended Dec. 31, from the 6.3 million tons a year earlier, Perth-based Fortescue said today in a regulatory statement. That’s below a UBS AG estimate of 9.5 million tons.
Rio Tinto Group, Australia’s biggest exporter, had record sales from its Pilbara mines last quarter as demand surged from China, the world’s biggest buyer. Contract iron ore prices may jump 50 percent this year, according to forecasts by Nomura Holdings Inc. and Bank of America Merrill Lynch.
“There are a wide variety of independent market forecasts for the benchmark, ranging from an increase of between 25 percent, up to 50 percent,” Fortescue said in the statement.
Fortescue declined 2.9 percent to A$4.99 at the 4:10 p.m. Sydney time close on the Australian stock exchange. The stock has jumped 12 percent this year as cash prices for iron ore for immediate delivery rose to their highest in at least 13 months.
Steelmakers in Japan and South Korea last year won a 33 percent price cut for annual prices from suppliers including Rio Tinto. Chinese steelmakers didn’t reach an agreement after failing to persuade miners to offer a bigger reduction.
No Settlement
“It also remains a possibility that, as per the previous contract year, there will not be a benchmark agreed for China in the next contract year beginning April 1, 2010,” Fortescue said today without elaborating.
The company is seeking to widen its customer base outside of China and has shipped its first cargo to a non-Chinese Asian buyer, Fortescue said today. In October, the iron ore producer said it was in talks to sell to South Korean and Japanese mills.
“It is one of the major mills of Asia, and a name widely respected in the industry,” Executive Director Russell Scrimshaw told reporters today on a conference call. “This particular customer, I am certain, will be the first of several who are coming along behind them.”
Fortescue failed last year to complete a planned $6 billion funding deal with Chinese lenders as it sought financing to expand operations to more than double exports by 2012.
The company is seeking to ship about 40 million tons this year prior to an expansion in 2011 which will boost capacity to 55 million tons a year, it said. Production costs in the quarter increased to $27.43 a ton from $26.60 a ton, the company said.
Fortescue had cash of $706 million at the end of December, up from $704 million at the end of the previous quarter, Chief Financial Officer Fiona Barclay said on the call.
Source: Bloomberg
Shipments reached 9.1 million metric tons in the three months ended Dec. 31, from the 6.3 million tons a year earlier, Perth-based Fortescue said today in a regulatory statement. That’s below a UBS AG estimate of 9.5 million tons.
Rio Tinto Group, Australia’s biggest exporter, had record sales from its Pilbara mines last quarter as demand surged from China, the world’s biggest buyer. Contract iron ore prices may jump 50 percent this year, according to forecasts by Nomura Holdings Inc. and Bank of America Merrill Lynch.
“There are a wide variety of independent market forecasts for the benchmark, ranging from an increase of between 25 percent, up to 50 percent,” Fortescue said in the statement.
Fortescue declined 2.9 percent to A$4.99 at the 4:10 p.m. Sydney time close on the Australian stock exchange. The stock has jumped 12 percent this year as cash prices for iron ore for immediate delivery rose to their highest in at least 13 months.
Steelmakers in Japan and South Korea last year won a 33 percent price cut for annual prices from suppliers including Rio Tinto. Chinese steelmakers didn’t reach an agreement after failing to persuade miners to offer a bigger reduction.
No Settlement
“It also remains a possibility that, as per the previous contract year, there will not be a benchmark agreed for China in the next contract year beginning April 1, 2010,” Fortescue said today without elaborating.
The company is seeking to widen its customer base outside of China and has shipped its first cargo to a non-Chinese Asian buyer, Fortescue said today. In October, the iron ore producer said it was in talks to sell to South Korean and Japanese mills.
“It is one of the major mills of Asia, and a name widely respected in the industry,” Executive Director Russell Scrimshaw told reporters today on a conference call. “This particular customer, I am certain, will be the first of several who are coming along behind them.”
Fortescue failed last year to complete a planned $6 billion funding deal with Chinese lenders as it sought financing to expand operations to more than double exports by 2012.
The company is seeking to ship about 40 million tons this year prior to an expansion in 2011 which will boost capacity to 55 million tons a year, it said. Production costs in the quarter increased to $27.43 a ton from $26.60 a ton, the company said.
Fortescue had cash of $706 million at the end of December, up from $704 million at the end of the previous quarter, Chief Financial Officer Fiona Barclay said on the call.
Source: Bloomberg
Kobe Steel Output At Record Levels On Chinese Demand
Kobe Steel Ltd., Japan’s fourth-largest producer, said output will rise to near record levels reached before the global financial crisis, as demand from China and Southeast Asia increases.
Output in the fourth fiscal quarter will rise to as much as 90 percent of the company’s record production, Hiroyoshi Tsumura, an executive in the Kobe, Japan-based company’s iron and steel division, said in an interview in Tokyo. Production peaked at 2.11 million metric tons in the three months to Sept. 30, 2008.
Kobe Steel and other producers in Japan, the world’s second-largest producer of the material, are counting on demand in China, Thailand and Malaysia to offset stagnant domestic growth. The company’s ratio of exports will probably rise to a record 28 percent of domestic output this fiscal year, which ends on March 31, Tsumura said.
“The speed of the recovery in the Asian region including China is much faster than in Japan,” Tsumura said in the interview yesterday. “We should consider the Japanese steel industry’s home market as not just Japan, but all of Asia.”
Japan’s steel exports increased for a fourth month in November, rising 34 percent from a year earlier, according to the Japan Iron and Steel Federation.
The demand from overseas is helping boost output and cushion stagnant sales in Japan. Production at Kobe Steel rose to about 85 percent of the peak in the third quarter from as much as 75 percent in the second, Tsumura said.
Kobe Steel said in October it plans to produce 6.4 million tons for the year to March 31.
Japanese manufacturers are curbing capital investment while the new government of Yukio Hatoyama, which is under pressure to control spending, is cutting outlays for public works.
Kobe Steel produced 2.88 million tons of crude steel in the first half, 31 percent below the 4.18 million tons of output in the six months to Sept. 30, 2008.
The company had a loss of 12 billion yen ($131.4 million) in the second quarter ended Sept. 30, narrowing from 33.2 billion yen in the previous three months, as exports improved and inventories fell. The company had net income of 20.9 billion yen a year earlier.
China’s growth rate accelerated to the fastest pace since 2007 in the fourth quarter, rising 10.7 percent from a year earlier, the government said today. Chinese steel production rose 14 percent to a record 568 million tons in 2009, according to the national bureau of statistics today.
Other Japanese steel makers are increasing their exports. Nippon Steel Corp.’s export ratio climbed to 36.2 percent in the April-to-September period, compared with 31.2 percent in the previous six months, according to a statement on Oct. 29 from the Tokyo-based company, the largest producer in Japan.
Source: Bloomberg
Output in the fourth fiscal quarter will rise to as much as 90 percent of the company’s record production, Hiroyoshi Tsumura, an executive in the Kobe, Japan-based company’s iron and steel division, said in an interview in Tokyo. Production peaked at 2.11 million metric tons in the three months to Sept. 30, 2008.
Kobe Steel and other producers in Japan, the world’s second-largest producer of the material, are counting on demand in China, Thailand and Malaysia to offset stagnant domestic growth. The company’s ratio of exports will probably rise to a record 28 percent of domestic output this fiscal year, which ends on March 31, Tsumura said.
“The speed of the recovery in the Asian region including China is much faster than in Japan,” Tsumura said in the interview yesterday. “We should consider the Japanese steel industry’s home market as not just Japan, but all of Asia.”
Japan’s steel exports increased for a fourth month in November, rising 34 percent from a year earlier, according to the Japan Iron and Steel Federation.
The demand from overseas is helping boost output and cushion stagnant sales in Japan. Production at Kobe Steel rose to about 85 percent of the peak in the third quarter from as much as 75 percent in the second, Tsumura said.
Kobe Steel said in October it plans to produce 6.4 million tons for the year to March 31.
Japanese manufacturers are curbing capital investment while the new government of Yukio Hatoyama, which is under pressure to control spending, is cutting outlays for public works.
Kobe Steel produced 2.88 million tons of crude steel in the first half, 31 percent below the 4.18 million tons of output in the six months to Sept. 30, 2008.
The company had a loss of 12 billion yen ($131.4 million) in the second quarter ended Sept. 30, narrowing from 33.2 billion yen in the previous three months, as exports improved and inventories fell. The company had net income of 20.9 billion yen a year earlier.
China’s growth rate accelerated to the fastest pace since 2007 in the fourth quarter, rising 10.7 percent from a year earlier, the government said today. Chinese steel production rose 14 percent to a record 568 million tons in 2009, according to the national bureau of statistics today.
Other Japanese steel makers are increasing their exports. Nippon Steel Corp.’s export ratio climbed to 36.2 percent in the April-to-September period, compared with 31.2 percent in the previous six months, according to a statement on Oct. 29 from the Tokyo-based company, the largest producer in Japan.
Source: Bloomberg
Ant Hill Manganese Ore Vessel Departs For China
Mesa Mineralshas reported that the vessel carrying the second trial shipment of manganese ore from Ant Hill sailed from Port Hedland early this morning.
The Opal Amber, which is carrying the 18,006 tonne cargo, is scheduled to arrive in northern China early in February.
Managing Director Alan Scott said the second trial shipment, which is of medium manganese and relatively high iron content, was similar to what the company would anticipate to be its medium grade product offering.
"It was keenly sought after by a wide range of customers, confirming our view that the market will welcome both our high and medium grade products," Mr Scott said.
"The geographical spread of these two cargo destinations within China is indicative of the wide spread of potential buyers who wish to establish regular ore supply relationships with Mesa."
The interest expressed in both trial shipments is in part due to their excellent handling characteristics in part due to smelting performance and due to the process innovations developed by many Chinese customers to efficiently smelt high iron manganese ores.
The two trial shipments have effectively completed the ‘export ore dimension’ of the trial mining exercise carried out at Ant Hill, with remaining ore stocks earmarked for beneficiation or secondary processing at a later date.
The completion of the trial mining exercise represents another significant step forward in Mesa’s efforts to attain a sustainable income stream from the export of metallurgical grade manganese ores into the steel sector.
Importantly, Mr Scott said it also advances Mesa’s efforts to establish a second sustainable income stream from the domestic processing of low grade manganese ores mined in the Pilbara, into high grade manganese products consumed in other industry sectors, utilising the Company’s patented hydrometallurgical technologies.
"Given that all regulatory hurdles in the way of opening a new mine have now been overcome, our attention can now be focused upon the commercial decisions that are before us, if we are to see the great potential of this mining venture fulfilled," he said.
"In this regard, Mesa believes that it is possible to move the Ant Hill mine from its present ’mothballed’ state, to a fully operating mine site, in a relatively short period of time."
Source: Proactive Investor
The Opal Amber, which is carrying the 18,006 tonne cargo, is scheduled to arrive in northern China early in February.
Managing Director Alan Scott said the second trial shipment, which is of medium manganese and relatively high iron content, was similar to what the company would anticipate to be its medium grade product offering.
"It was keenly sought after by a wide range of customers, confirming our view that the market will welcome both our high and medium grade products," Mr Scott said.
"The geographical spread of these two cargo destinations within China is indicative of the wide spread of potential buyers who wish to establish regular ore supply relationships with Mesa."
The interest expressed in both trial shipments is in part due to their excellent handling characteristics in part due to smelting performance and due to the process innovations developed by many Chinese customers to efficiently smelt high iron manganese ores.
The two trial shipments have effectively completed the ‘export ore dimension’ of the trial mining exercise carried out at Ant Hill, with remaining ore stocks earmarked for beneficiation or secondary processing at a later date.
The completion of the trial mining exercise represents another significant step forward in Mesa’s efforts to attain a sustainable income stream from the export of metallurgical grade manganese ores into the steel sector.
Importantly, Mr Scott said it also advances Mesa’s efforts to establish a second sustainable income stream from the domestic processing of low grade manganese ores mined in the Pilbara, into high grade manganese products consumed in other industry sectors, utilising the Company’s patented hydrometallurgical technologies.
"Given that all regulatory hurdles in the way of opening a new mine have now been overcome, our attention can now be focused upon the commercial decisions that are before us, if we are to see the great potential of this mining venture fulfilled," he said.
"In this regard, Mesa believes that it is possible to move the Ant Hill mine from its present ’mothballed’ state, to a fully operating mine site, in a relatively short period of time."
Source: Proactive Investor
Two Bids For Mezhegei
Severstal and Evraz Group have both bid for the Mezhegei coking coal deposit in the Tuva region, Vedomosti said, citing unidentified people in the industry.
The Federal Subsoil Resources Use Agency will on March 2 award the license for the deposit, which contains as much as 214 million metric tons of coal, it said Wednesday.
Source: Moscow Times
The Federal Subsoil Resources Use Agency will on March 2 award the license for the deposit, which contains as much as 214 million metric tons of coal, it said Wednesday.
Source: Moscow Times
Ukraine Ferroalloy Production Down By A Quarter In 2009
According to the Association of Ukrainian Ferroalloy Producers (UkrFA), in 2009 Ukraine registered a 25.2 percent decrease year on year in its ferroalloys production to 1.036 million mt.
Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.
SourcE: Stele Orbis
Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.
SourcE: Stele Orbis
Wednesday, January 20, 2010
Connemara Mining Issues Drilling Update
Irish zinc explorer Connemara Mining's drilling in Stonepark in Limerick has found that a zinc deposit located in 2007 stretches over a 2km zone.
“These are very positive results from Stonepark. The Hole 32 intersection has almost everything one would want – high grade, the right type of mineralisation, shallow depth and is located a good distance from the earlier discoveries," said chairman John Teeling.
"The Hole 30 intersection 400 metres away from any previous drilling and 2km away from Hole 32, offers the distinct possibility of a much larger deposit. It is early days but Stonepark is looking good. We will be very active in 2010 and plan to drill 20-30 holes.”
The AIM-listed company said this morning €2 million would be invested by Connemara Mining and operators Teck Resources in drilling a further 30 holes at Stonepark this year, with Connemara Mining contributing €600,000 towards the programme.
Source: Irish Times
“These are very positive results from Stonepark. The Hole 32 intersection has almost everything one would want – high grade, the right type of mineralisation, shallow depth and is located a good distance from the earlier discoveries," said chairman John Teeling.
"The Hole 30 intersection 400 metres away from any previous drilling and 2km away from Hole 32, offers the distinct possibility of a much larger deposit. It is early days but Stonepark is looking good. We will be very active in 2010 and plan to drill 20-30 holes.”
The AIM-listed company said this morning €2 million would be invested by Connemara Mining and operators Teck Resources in drilling a further 30 holes at Stonepark this year, with Connemara Mining contributing €600,000 towards the programme.
Source: Irish Times
Ukraine Coal Production Falls 7 Per Cent In 2009
Ukraine reduced coal production approximately 7% in 2009 to 72.22 million tonnes, the Coal Ministry told Interfax. Coking coal production fell 4.3% to just under 25.5 million tonnes, and steam coal fell 8.4% to 46.725 million tonnes. Coal production was still 14.1% above the target set by the Coal Ministry.
State-owned coal mines accountable to the Coal Ministry reduced production 15.3% in 2009 to 38.44 million tonnes, including 9.134 million tonnes of coking coal, down 10.9%, and 29.306 million tonnes of steam coal, down 16.6%.
Overall coal production in December alone rose 1.1% year-on-year to just under 6.2 million tonnes, including 1.87 million tonnes of coking coal, up 5.2%, and 4.331 million tonnes of steam coal, down 0.6% year-on-year.
Coal production in Ukraine rose 3% in 2008 compared with 2007 to 77.673 million tonnes, including 26.642 million tonnes of coking coal, down 6.2%, but 51.031 million tonnes of steam coal, up 8.5%.
Data analysis at the Kyiv Post
State-owned coal mines accountable to the Coal Ministry reduced production 15.3% in 2009 to 38.44 million tonnes, including 9.134 million tonnes of coking coal, down 10.9%, and 29.306 million tonnes of steam coal, down 16.6%.
Overall coal production in December alone rose 1.1% year-on-year to just under 6.2 million tonnes, including 1.87 million tonnes of coking coal, up 5.2%, and 4.331 million tonnes of steam coal, down 0.6% year-on-year.
Coal production in Ukraine rose 3% in 2008 compared with 2007 to 77.673 million tonnes, including 26.642 million tonnes of coking coal, down 6.2%, but 51.031 million tonnes of steam coal, up 8.5%.
Data analysis at the Kyiv Post
Weather Hits Newcastle Coal Exports
Coal exports at Australia's Newcastle port, the world's largest coal export terminal, fell 16 percent from a week ago, however vessel queue and waiting
time continued to rise, data showed on Wednesday.
Exports from the eastern coast port, which ships mostly thermal coal used in power plants, fell to 1.56 million tonnesin the week to Jan 18, the port said on its Web site. Ship queues rose for the third week to 54, while average
queue time posted its sixth weekly rise to 16.6 days -- the highest in over a year.
Australia has been hit by heavy rainfall in the recent
weeks, resulting in slower production at some mines and
flooding of rail links affecting the transport of coal to port
terminals.
More from Reuters
time continued to rise, data showed on Wednesday.
Exports from the eastern coast port, which ships mostly thermal coal used in power plants, fell to 1.56 million tonnesin the week to Jan 18, the port said on its Web site. Ship queues rose for the third week to 54, while average
queue time posted its sixth weekly rise to 16.6 days -- the highest in over a year.
Australia has been hit by heavy rainfall in the recent
weeks, resulting in slower production at some mines and
flooding of rail links affecting the transport of coal to port
terminals.
More from Reuters
Liberty Chooses A Good Time To Get Back Into The Nickel Business
Now is the time to get back into the nickel business, says the president and chief executive officer of a junior nickel miner with operations in Timmins and Gogama.
"We make money at $7 (U. S. per pound) nickel," Gary Nash of Liberty Nickel said Monday. "We make good money at $8 nickel and very good money at $9 and so forth. Above $10 would be excellent, (but) I don't think it will go above $10. The Chinese have too much pig iron (a form of nickel)."
Liberty Nickel is now mining at its Redstone and McWatters Mines, producing 300 and up to 500 tonnes of ore a day respectively. McWatters, which is in the development stage and has now reached 150 metres of depth, is producing nickel. Ore from the two sites is treated at an on-site concentrator and shipped to Xstrata Nickel's Falconbridge smelter in Greater Sudbury for processing.
In the event of a labour dispute involving Mine Mill Local 598/CAW next month, he said Liberty Nickel could ship its concentrate to China for smelting. That's because its majority owner is the Jilin Jien Nickel Industry Company in Panshi City.
Nash said the Vale Inco strike "helps (nickel prices) in the short term. It's taken a little bit of nickel out of the market."
Nash said the company's cost of production is close to $7 US per pound. Nickel was selling for $8.31 US per pound on the London Metal Exchange on Friday.
Liberty Nickel plans to open a third nickel mine -- Hart -- by mid-2010. That mine will be staffed by McWatters Mine employees, but could require an additional 15 employees.
"It's about 4.5 years of mine life," he said. "But we have only drilled about one-third of the project. It has 737,000 (tonnes of ore) inferred and 600,000 measured. It's good grade ore at 1.5% nickel."
Nash said it's hard to understand why nickel prices are in the $8-9 US range while inventories of the metal in the London Metal Exchange warehouses are at record levels.
"That is totally against the laws of economics, the law of supply and demand," he said. "You have 160,000 tonnes sitting in the LME warehouses, but there's 114,000 sitting in one warehouse in Rotterdam. Why is that metal just sitting there when the American steel producers are paying a premium up to 90 cents a pound to get nickel for their (stainless) steel?"
David Constable, vice-president- investor relations of FNX Mining, which operates the McCreedy West and Podolsky mines and the Levack Footwall deposit in Greater Sudbury, isn't concerned about what happens with nickel in 2010 because FNX is focused on copper.
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"Right now, our star is hitched to the copper market," he said "We are out of the nickel business, have been out since the fourth quarter of 2008.
Constable said the company is looking to mine nearly 900,000 tonnes of ore at its Greater Sudbury operations, producing just less than 50 million pounds of copper and eight million pounds of nickel.
Constable said with China's appetite for nickel remaining constant, while world inventories of nickel continue to grow, it is FNX's view that the world nickel market will fully recover when the North American and European economies fully recover. That recovery, he said, won't come until the end of this year or sometime in 2011.
"We have said from the beginning when everything went in the tank, this is going to be a two-or three-year wave," he said.
FNX now has about 450 people working at its Greater Sudbury operations, up about 40 from the end of 2008. Ore from the operations is being processed at Vale Inco's Clarabelle Mill in Greater Sudbury.
Ursa Major Minerals Inc., which shut down its Shakespeare nickel open pit operation just outside of Greater Sudbury in October 2008, is looking to re-open it shortly.
"It's a matter of days," said Richard Sutcliffe, the company's president and chief executive officer. "We believe there is a favourable outlook for the metal for the foreseeable future ... We believe the recovery has taken hold."
Sutcliffe said 35 people were working at Shakespeare when it shut down. Ore from the operation will be crushed on site and then sent to Xstrata Nickel's Strathcona Mill for processing.
Ursa Major Minerals is also looking at opening a second nickel mine -- the Nickel Offsets Mine -- also northwest of Greater Sudbury.
"We're getting there," said Sutcliffe. "It's quite promising. "We have some numbers we're putting out in the next week. We're quite impressed by them, but the main focus is Shakespeare."
Source: Sudbury Star
"We make money at $7 (U. S. per pound) nickel," Gary Nash of Liberty Nickel said Monday. "We make good money at $8 nickel and very good money at $9 and so forth. Above $10 would be excellent, (but) I don't think it will go above $10. The Chinese have too much pig iron (a form of nickel)."
Liberty Nickel is now mining at its Redstone and McWatters Mines, producing 300 and up to 500 tonnes of ore a day respectively. McWatters, which is in the development stage and has now reached 150 metres of depth, is producing nickel. Ore from the two sites is treated at an on-site concentrator and shipped to Xstrata Nickel's Falconbridge smelter in Greater Sudbury for processing.
In the event of a labour dispute involving Mine Mill Local 598/CAW next month, he said Liberty Nickel could ship its concentrate to China for smelting. That's because its majority owner is the Jilin Jien Nickel Industry Company in Panshi City.
Nash said the Vale Inco strike "helps (nickel prices) in the short term. It's taken a little bit of nickel out of the market."
Nash said the company's cost of production is close to $7 US per pound. Nickel was selling for $8.31 US per pound on the London Metal Exchange on Friday.
Liberty Nickel plans to open a third nickel mine -- Hart -- by mid-2010. That mine will be staffed by McWatters Mine employees, but could require an additional 15 employees.
"It's about 4.5 years of mine life," he said. "But we have only drilled about one-third of the project. It has 737,000 (tonnes of ore) inferred and 600,000 measured. It's good grade ore at 1.5% nickel."
Nash said it's hard to understand why nickel prices are in the $8-9 US range while inventories of the metal in the London Metal Exchange warehouses are at record levels.
"That is totally against the laws of economics, the law of supply and demand," he said. "You have 160,000 tonnes sitting in the LME warehouses, but there's 114,000 sitting in one warehouse in Rotterdam. Why is that metal just sitting there when the American steel producers are paying a premium up to 90 cents a pound to get nickel for their (stainless) steel?"
David Constable, vice-president- investor relations of FNX Mining, which operates the McCreedy West and Podolsky mines and the Levack Footwall deposit in Greater Sudbury, isn't concerned about what happens with nickel in 2010 because FNX is focused on copper.
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"Right now, our star is hitched to the copper market," he said "We are out of the nickel business, have been out since the fourth quarter of 2008.
Constable said the company is looking to mine nearly 900,000 tonnes of ore at its Greater Sudbury operations, producing just less than 50 million pounds of copper and eight million pounds of nickel.
Constable said with China's appetite for nickel remaining constant, while world inventories of nickel continue to grow, it is FNX's view that the world nickel market will fully recover when the North American and European economies fully recover. That recovery, he said, won't come until the end of this year or sometime in 2011.
"We have said from the beginning when everything went in the tank, this is going to be a two-or three-year wave," he said.
FNX now has about 450 people working at its Greater Sudbury operations, up about 40 from the end of 2008. Ore from the operations is being processed at Vale Inco's Clarabelle Mill in Greater Sudbury.
Ursa Major Minerals Inc., which shut down its Shakespeare nickel open pit operation just outside of Greater Sudbury in October 2008, is looking to re-open it shortly.
"It's a matter of days," said Richard Sutcliffe, the company's president and chief executive officer. "We believe there is a favourable outlook for the metal for the foreseeable future ... We believe the recovery has taken hold."
Sutcliffe said 35 people were working at Shakespeare when it shut down. Ore from the operation will be crushed on site and then sent to Xstrata Nickel's Strathcona Mill for processing.
Ursa Major Minerals is also looking at opening a second nickel mine -- the Nickel Offsets Mine -- also northwest of Greater Sudbury.
"We're getting there," said Sutcliffe. "It's quite promising. "We have some numbers we're putting out in the next week. We're quite impressed by them, but the main focus is Shakespeare."
Source: Sudbury Star
Vale Certain To Reach Iron Ore Agreement
Vale SA, the world’s largest iron- ore producer, is “certain” to reach a price accord for the steelmaking ingredient this year with Chinese steel mills, Ferrous Minerals Director Jose Carlos Martins said.
Vale expects to reach a “mutually interesting solution” with its Chinese iron-ore buyers in 2010, after “overcoming” 2009’s stalemate, Martins told reporters today in Rio de Janeiro. Last year, China’s big steelmakers discarded traditional benchmark pricing after failing to reach accords with mining companies on contract sales.
Vale sold a record 110 million metric tons of the raw material to Chinese buyers in the first nine months of 2009, while European sales fell because of the global economic crisis, Martins said. Vale intends to keep this year’s sales to China little changed from 2009 levels as demand recovery in western and Asian markets may tighten supplies, he said.
“This year’s going to be different,” Martins said. “Vale’s relations with its Chinese clients are very good. We have more than 120 clients spread over all Chinese provinces.”
Today, demand for global iron ore has rebound to pre-crisis levels or possibly higher, Martins said. Seaborne trade in iron ore may reach 900 million tons this year, up from 850 million tons in 2008, he said.
Source: Bloomberg
Vale expects to reach a “mutually interesting solution” with its Chinese iron-ore buyers in 2010, after “overcoming” 2009’s stalemate, Martins told reporters today in Rio de Janeiro. Last year, China’s big steelmakers discarded traditional benchmark pricing after failing to reach accords with mining companies on contract sales.
Vale sold a record 110 million metric tons of the raw material to Chinese buyers in the first nine months of 2009, while European sales fell because of the global economic crisis, Martins said. Vale intends to keep this year’s sales to China little changed from 2009 levels as demand recovery in western and Asian markets may tighten supplies, he said.
“This year’s going to be different,” Martins said. “Vale’s relations with its Chinese clients are very good. We have more than 120 clients spread over all Chinese provinces.”
Today, demand for global iron ore has rebound to pre-crisis levels or possibly higher, Martins said. Seaborne trade in iron ore may reach 900 million tons this year, up from 850 million tons in 2008, he said.
Source: Bloomberg
Geovic COnfident On Financing Cameroon Cobalt Mine
Denver, Colorado-based Geovic Mining is optimistic it can secure and sign off on a financing package and then start building its Nkamouna cobalt/nickel/manganese project by year-end, CEO Jack Sherborne said on Tuesday.
The mine, which is expected to be one of the biggest producers of cobalt in the world, was originally to have begun production this year.
However, the company, like many of its peers, put the financing process on hold in November 2008 amid turmoil in global markets, although it continued with optimisation studies and test work in the interim.
Geovic holds 60% of Geovic Cameroon (GeoCam), which owns the large Nkamouna project. The balance is held by the National Investment Corporation of Cameroon and local investors.
After settling on what it believes is a more efficient processing plan, and with growing interest from potential funders, GeoCam has started work on an updated feasibility study and Geovic announced last month that it had hired Standard Chartered to advise on project financing.
"We are about as confident about this project moving ahead right now as we have been for quite some time," Sherborne told Mining Weekly Online.
"We're going to try to move it just as fast as we can."
The feasibility study update is expected by mid-year, and the firm has already started evaluating financing options.
Sherborne said Geovic continues to look at conventional debt/equity solutions, but has also been eyeing some less traditional financing packages arranged by other companies in the last six months or so.
For example, an offtake agreement or strategic partnership could be tied to a debt financing package together with an equity interest in the project.
"That is a different approach to what we had been taking up until about a year ago, but it's a conceptual package that we are interested in pursuing. And we have had some interested parties that we have been discussing that type of opportunity with."
Overall, interest in mining projects has firmed considerably over the last few months, from institutions like development banks, but also from commercial banks, he said.
There has also been strong interest from Asian groups, including from China and Korea, looking to secure big offtake agreements.
A September 2008 study pegged the capital cost to builf the Nkamouna project at $379-million, but Sherborne expects that figure will come down, given lower prices for some materials and other costs, plus the changes to the project that will be included in the feasibility study update.
"We are sort of targeting somewhere around $350-million for the capital cost right now," he said.
"But of course it will be quite some time before we can really talk about that number definitively."
The adjustments to the processing technology were aimed at reducing the risk and improving the 'bankability' of the project and are expected to shave a bit off the capital cost because GeoCam has opted to to manufacture intermediate, rather than finished, cobalt and nickel products, in addition to a finished manganese carbonate product.
Cobalt is used in gas turbine aircraft engines, batteries and catalysts.
While demand for the metal was relatively soft in 2009, the market appears to have begun strengthening over the last month or so, Sherborne said.
"My sense is that it will continue to strengthen. There seems to be quite a pick-up in the battery end of the cobalt market and that seems to be driving the demand a little bit.
"And this is likely to translate into slightly stronger prices as time goes by," he said.
The Nkamouna project contains measured and indicated resources of 120,6-million tons, grading 0,23% cobalt, 0,65% nickel and 1,34% manganese.
Inferred resources currently stand at 202,5-million tons, grading 0,2% cobalt, 0,59% nickel and 1,2% manganese.
The September 2008 feasibility study estimated total cash costs at $2,02/lb of cobalt, while direct costs, net of by-products, were forecast at negative $0,46/lb.
At the time, the mine life was estimated at around 19 years, but GeoCam announced in October it had almost doubled the measured and indicated resources.
This means it is likely the updated feasibility study will include increased reserve figures and an extended operating life.
Source: Mining Weekly
The mine, which is expected to be one of the biggest producers of cobalt in the world, was originally to have begun production this year.
However, the company, like many of its peers, put the financing process on hold in November 2008 amid turmoil in global markets, although it continued with optimisation studies and test work in the interim.
Geovic holds 60% of Geovic Cameroon (GeoCam), which owns the large Nkamouna project. The balance is held by the National Investment Corporation of Cameroon and local investors.
After settling on what it believes is a more efficient processing plan, and with growing interest from potential funders, GeoCam has started work on an updated feasibility study and Geovic announced last month that it had hired Standard Chartered to advise on project financing.
"We are about as confident about this project moving ahead right now as we have been for quite some time," Sherborne told Mining Weekly Online.
"We're going to try to move it just as fast as we can."
The feasibility study update is expected by mid-year, and the firm has already started evaluating financing options.
Sherborne said Geovic continues to look at conventional debt/equity solutions, but has also been eyeing some less traditional financing packages arranged by other companies in the last six months or so.
For example, an offtake agreement or strategic partnership could be tied to a debt financing package together with an equity interest in the project.
"That is a different approach to what we had been taking up until about a year ago, but it's a conceptual package that we are interested in pursuing. And we have had some interested parties that we have been discussing that type of opportunity with."
Overall, interest in mining projects has firmed considerably over the last few months, from institutions like development banks, but also from commercial banks, he said.
There has also been strong interest from Asian groups, including from China and Korea, looking to secure big offtake agreements.
A September 2008 study pegged the capital cost to builf the Nkamouna project at $379-million, but Sherborne expects that figure will come down, given lower prices for some materials and other costs, plus the changes to the project that will be included in the feasibility study update.
"We are sort of targeting somewhere around $350-million for the capital cost right now," he said.
"But of course it will be quite some time before we can really talk about that number definitively."
The adjustments to the processing technology were aimed at reducing the risk and improving the 'bankability' of the project and are expected to shave a bit off the capital cost because GeoCam has opted to to manufacture intermediate, rather than finished, cobalt and nickel products, in addition to a finished manganese carbonate product.
Cobalt is used in gas turbine aircraft engines, batteries and catalysts.
While demand for the metal was relatively soft in 2009, the market appears to have begun strengthening over the last month or so, Sherborne said.
"My sense is that it will continue to strengthen. There seems to be quite a pick-up in the battery end of the cobalt market and that seems to be driving the demand a little bit.
"And this is likely to translate into slightly stronger prices as time goes by," he said.
The Nkamouna project contains measured and indicated resources of 120,6-million tons, grading 0,23% cobalt, 0,65% nickel and 1,34% manganese.
Inferred resources currently stand at 202,5-million tons, grading 0,2% cobalt, 0,59% nickel and 1,2% manganese.
The September 2008 feasibility study estimated total cash costs at $2,02/lb of cobalt, while direct costs, net of by-products, were forecast at negative $0,46/lb.
At the time, the mine life was estimated at around 19 years, but GeoCam announced in October it had almost doubled the measured and indicated resources.
This means it is likely the updated feasibility study will include increased reserve figures and an extended operating life.
Source: Mining Weekly
BHP Billiton Output At New High
The world's biggest miner, BHP Billiton, has reported a surge in fourth-quarter production volumes, with another record for iron ore.
BHP said half-year production records were set for petroleum and iron ore. Nickel and zinc also had record half-year production runs.
BHP shares rose 10 cents, or 0.2 per cent, to close at $43.41, after jumping as much as 1.5 per cent in early trading.
Iron ore production jumped 11 per cent to 32.449 million tonnes for the three months to December from a year earlier, Melbourne-based BHP said in a statement.
That took production for the half year to 62.6 million tonnes, also a record figure.
''Over the next three to five years, you would be very confident that the steel market should grow,'' said Tim Schroeders, who helps manage $1.2 billion at Pengana Capital in Melbourne, including BHP. He expects its earnings estimates to be upgraded about 5 per cent. ''They met expectations.''
Petroleum production also recorded another half-year production record, according to BHP.Production jumped 16 per cent to 38.36 million barrels of oil equivalent (boe) in the fourth quarter from a year earlier, helping the half-year number to jump 17 per cent to 79.57 million boe.
BHP said there had been strong price recovery ''across the commodity suite'', driven by demand from China and restocking in the developed world.
Looking ahead, the company said the speed of recovery in developed economies remained uncertain, especially given withdrawal of government stimulus, while China's moves to control loan growth could have an effect on demand.
''Consequently, we expect some degree of volatility in the short term outlook for commodities,'' BHP said.
In its iron ore operations, the rapid growth project 4 (RGP4) ramp up was continuing in the Pilbara region of Western Australia, and the miner expected to reach full capacity by the end of calendar 2011.
RGP4 already had helped achieve better use of rail and port infrastructure, which had helped in the record half-year production.
Record petroleum
Petroleum production had jumped to a record due to the ramp up of BHP's Shenzi field, and a strong performance from Atlantis, both of which are in the Gulf of Mexico.
There were no weather-related interruptions to production.
Production declined slightly from the September quarter as a result of lower seasonal demand in eastern Australia and planned downtime at Gulf of Mexico non-operational assets, BHP said.
Nickel, Zinc surge
Nickel production in the fourth quarter jumped 20 per cent to a record 49,000 tonnes on the performance of BHP's Australian Nickel West operations.
BHP produced 84,400 tonnes in the December half year, a 45 per cent surge from the prior corresponding half.
Zinc production also surged 58 per cent in the fourth quarter to 59,835 tonnes due to higher mining grades. Production jumped 33 per cent to 106,260 half on half.
Copper production slipped 10 per cent to 555,000 for the half year, mainly due to the Clark Shaft outage at Olympic Dam in South Australia, as well as industrial action in Spence, in Chile.
These were offset partly by stronger production at Escondida, also in Chile.Production of alumina rose one per cent to 1.78 million tonnes and aluminium had the same percentage gain to 626,000 tonnes, half on half.
Lead production was flat half on half, at 106,260 tonnes, silver production rose three per cent to 22,458 ounces and uranium production slipped 25 per cent to 1,478 tonnes.
Diamond production grew 13 per cent to 1.54 million carats, half on half.
Coal production slipped, with metallurgical coal falling five per cent to 18.3 million tonnes half on half because of planned maintenance at Queensland Coal and longwall moves at Illawarra Coal.
Despite the lower production, the company shipped record quantities of the fuel, which is used to make steel, in response to stronger demand.
Energy coal production slipped one per cent to 35.5 million tonnes half on half as its Cerrejon project in Columbia faced lower demand, New Mexico had planned outages and BHP's South African mines had unplanned maintenance and weather interruptions.
Manganese ore production fell 17 per cent half on half to 2.69 million tonnes while manganese alloy production plunged 49 per cent to 194,000 tonnes.
Source: Melbourne Age
BHP said half-year production records were set for petroleum and iron ore. Nickel and zinc also had record half-year production runs.
BHP shares rose 10 cents, or 0.2 per cent, to close at $43.41, after jumping as much as 1.5 per cent in early trading.
Iron ore production jumped 11 per cent to 32.449 million tonnes for the three months to December from a year earlier, Melbourne-based BHP said in a statement.
That took production for the half year to 62.6 million tonnes, also a record figure.
''Over the next three to five years, you would be very confident that the steel market should grow,'' said Tim Schroeders, who helps manage $1.2 billion at Pengana Capital in Melbourne, including BHP. He expects its earnings estimates to be upgraded about 5 per cent. ''They met expectations.''
Petroleum production also recorded another half-year production record, according to BHP.Production jumped 16 per cent to 38.36 million barrels of oil equivalent (boe) in the fourth quarter from a year earlier, helping the half-year number to jump 17 per cent to 79.57 million boe.
BHP said there had been strong price recovery ''across the commodity suite'', driven by demand from China and restocking in the developed world.
Looking ahead, the company said the speed of recovery in developed economies remained uncertain, especially given withdrawal of government stimulus, while China's moves to control loan growth could have an effect on demand.
''Consequently, we expect some degree of volatility in the short term outlook for commodities,'' BHP said.
In its iron ore operations, the rapid growth project 4 (RGP4) ramp up was continuing in the Pilbara region of Western Australia, and the miner expected to reach full capacity by the end of calendar 2011.
RGP4 already had helped achieve better use of rail and port infrastructure, which had helped in the record half-year production.
Record petroleum
Petroleum production had jumped to a record due to the ramp up of BHP's Shenzi field, and a strong performance from Atlantis, both of which are in the Gulf of Mexico.
There were no weather-related interruptions to production.
Production declined slightly from the September quarter as a result of lower seasonal demand in eastern Australia and planned downtime at Gulf of Mexico non-operational assets, BHP said.
Nickel, Zinc surge
Nickel production in the fourth quarter jumped 20 per cent to a record 49,000 tonnes on the performance of BHP's Australian Nickel West operations.
BHP produced 84,400 tonnes in the December half year, a 45 per cent surge from the prior corresponding half.
Zinc production also surged 58 per cent in the fourth quarter to 59,835 tonnes due to higher mining grades. Production jumped 33 per cent to 106,260 half on half.
Copper production slipped 10 per cent to 555,000 for the half year, mainly due to the Clark Shaft outage at Olympic Dam in South Australia, as well as industrial action in Spence, in Chile.
These were offset partly by stronger production at Escondida, also in Chile.Production of alumina rose one per cent to 1.78 million tonnes and aluminium had the same percentage gain to 626,000 tonnes, half on half.
Lead production was flat half on half, at 106,260 tonnes, silver production rose three per cent to 22,458 ounces and uranium production slipped 25 per cent to 1,478 tonnes.
Diamond production grew 13 per cent to 1.54 million carats, half on half.
Coal production slipped, with metallurgical coal falling five per cent to 18.3 million tonnes half on half because of planned maintenance at Queensland Coal and longwall moves at Illawarra Coal.
Despite the lower production, the company shipped record quantities of the fuel, which is used to make steel, in response to stronger demand.
Energy coal production slipped one per cent to 35.5 million tonnes half on half as its Cerrejon project in Columbia faced lower demand, New Mexico had planned outages and BHP's South African mines had unplanned maintenance and weather interruptions.
Manganese ore production fell 17 per cent half on half to 2.69 million tonnes while manganese alloy production plunged 49 per cent to 194,000 tonnes.
Source: Melbourne Age
Kemi Chrome Ore Mine Could Be Bigger Than Thought
Outokumpu's Kemi mine has more mineral resources than originally thought and could be mined for hundreds of years at double the planned annual production volumes, the firm said on Tuesday.
"We have ready plans and preparedness to extend the mining operations and to double the ferrochrome production if so decided," Outokumpu CE Juha Rantanen said in a statement.
"The reassessment of our investment decision depends on the economic outlook and market situation as well as on the energy question, as the production of ferrochrome consumes high amounts of electricity," he said.
Outokumpu said based on recent seismic research Kemi's chrome ore deposits extend to the depth of 2-3 kilometres, or even 4 kilometres, while it is possible the chromitite layer extends to at least 2-2.5 kilometres or even deeper.
The Kemi mine is the only chromium mine in the European Union area. It produces chromite concentrates used as raw material in Outokumpu's ferrochrome smelter in Tornio, and has an annual output of about 1,3-million tons of ore.
Source: Mining Weekly
"We have ready plans and preparedness to extend the mining operations and to double the ferrochrome production if so decided," Outokumpu CE Juha Rantanen said in a statement.
"The reassessment of our investment decision depends on the economic outlook and market situation as well as on the energy question, as the production of ferrochrome consumes high amounts of electricity," he said.
Outokumpu said based on recent seismic research Kemi's chrome ore deposits extend to the depth of 2-3 kilometres, or even 4 kilometres, while it is possible the chromitite layer extends to at least 2-2.5 kilometres or even deeper.
The Kemi mine is the only chromium mine in the European Union area. It produces chromite concentrates used as raw material in Outokumpu's ferrochrome smelter in Tornio, and has an annual output of about 1,3-million tons of ore.
Source: Mining Weekly
Tuesday, January 19, 2010
Iron Ore Talks In Chaos
This year's iron ore contract price is unlikely to be made in China, as China's steel association widens its rift with mining companies and even its own steel mill members.
A senior mining executive told BusinessDay that the China Iron & Steel Association had so far "repeated all the mistakes of last year and added a few more" in this year's iron ore dealings.
The mistakes included lobbing bombastic threats without having any strategy for following through.
Nearly two months ago, CISA told Vale, Rio Tinto and BHP Billiton that it would be taking a harder line and would not accept anything less than a discount "China price" compared with Japan and other countries, BusinessDay believes.
CISA also said it would repeat last year's disastrous experiment of having Baosteel officials leading the talks while consulting CISA officials in the same room. Baosteel has installed a new negotiator, Wang Liqun, to replace last year's negotiator, according to industry sources.
Since the tough ultimatum, the big mining companies have not heard anything from CISA, no substantive negotiations have taken place and the spot price of iron ore has risen by about a third, to US$135 a tonne.
Prices have risen on frenetic Chinese buying, which has, in part, been driven by fears that new export taxes and a big corruption crackdown on Indian iron ore would reduce Indian imports.
"CISA is behaving every bit as irrationally as they did last time around," said a senior mining executive. "There is no way that anybody is going to want to engage with them."
The executive said that recent reports of Chinese hacking and spying on Google and other US companies had not helped.
In the meantime, genuine talks have progressed between mining companies and Japan's Nippon Steel.
Chinese media reports say that big Chinese mills, including Baosteel, and Wuhan Iron & Steel, have taken it on themselves to fill CISA's leadership vacuum and rebuild bridges with miners. "Collapse of the 'China price' for iron ore" said a front-page headline in the 21st Century Business Herald.
Hu Kai, an analyst with Shanghai consultancy Umetal.com, predicted CISA might get its "China price" after all, but it would be higher than everybody else's.
"Japan and Europe stick to contracts and China imports all from the spot market," he said.
"That means China will pay a different price to every shipment."
Mr Hu said no iron ore negotiations were taking place with China.
He said the Stern Hu case had had "a negative impact" and had helped the resolve of the mining companies against heavy-handed tactics by the Chinese Government and CISA.
"This has resulted in resistance, or even an unwillingness to talk," he said.
He said Chinese steel mills had not helped their cause by walking away from iron ore contracts when prices tanked after the 2008 financial crisis.
"Nobody talks now … contracts seem to have no binding power any more," he said.
Source: Sydney Morning Herald
A senior mining executive told BusinessDay that the China Iron & Steel Association had so far "repeated all the mistakes of last year and added a few more" in this year's iron ore dealings.
The mistakes included lobbing bombastic threats without having any strategy for following through.
Nearly two months ago, CISA told Vale, Rio Tinto and BHP Billiton that it would be taking a harder line and would not accept anything less than a discount "China price" compared with Japan and other countries, BusinessDay believes.
CISA also said it would repeat last year's disastrous experiment of having Baosteel officials leading the talks while consulting CISA officials in the same room. Baosteel has installed a new negotiator, Wang Liqun, to replace last year's negotiator, according to industry sources.
Since the tough ultimatum, the big mining companies have not heard anything from CISA, no substantive negotiations have taken place and the spot price of iron ore has risen by about a third, to US$135 a tonne.
Prices have risen on frenetic Chinese buying, which has, in part, been driven by fears that new export taxes and a big corruption crackdown on Indian iron ore would reduce Indian imports.
"CISA is behaving every bit as irrationally as they did last time around," said a senior mining executive. "There is no way that anybody is going to want to engage with them."
The executive said that recent reports of Chinese hacking and spying on Google and other US companies had not helped.
In the meantime, genuine talks have progressed between mining companies and Japan's Nippon Steel.
Chinese media reports say that big Chinese mills, including Baosteel, and Wuhan Iron & Steel, have taken it on themselves to fill CISA's leadership vacuum and rebuild bridges with miners. "Collapse of the 'China price' for iron ore" said a front-page headline in the 21st Century Business Herald.
Hu Kai, an analyst with Shanghai consultancy Umetal.com, predicted CISA might get its "China price" after all, but it would be higher than everybody else's.
"Japan and Europe stick to contracts and China imports all from the spot market," he said.
"That means China will pay a different price to every shipment."
Mr Hu said no iron ore negotiations were taking place with China.
He said the Stern Hu case had had "a negative impact" and had helped the resolve of the mining companies against heavy-handed tactics by the Chinese Government and CISA.
"This has resulted in resistance, or even an unwillingness to talk," he said.
He said Chinese steel mills had not helped their cause by walking away from iron ore contracts when prices tanked after the 2008 financial crisis.
"Nobody talks now … contracts seem to have no binding power any more," he said.
Source: Sydney Morning Herald
China Coal Imports 'Hit New Record' In December
Reuters has quoted sources in China that say coal imports leapt to a monthly record of 16.38 million tonnes in December up by 29.5% from November.
One industry source who had seen figures from China customs office, which are not due to be published until Thursday said "December imports were 16.38 million tonnes."
The previous monthly high was 16.073 million tonnes imported in June. Shipments to China, the world's top producer of coal, surged last year after output in Shanxi, its top coal mining province, slowed and demand in other parts of the world fell.
The imports surge was also partly caused by demand for coking coal from China's steelmakers who ramped up production to unprecedented levels in 2009.
It was not clear how much of December's record imports were coking coal, but China has suffered unexpectedly cold weather in the last two months that has strained power supplies and pushed power generators' coal stocks dangerously low.
Mr Lu PIng an analyst at China Merchants Securities said "The high imports were a result of insufficient supply in the domestic market. January is likely another month of high imports. He said that high imports will probably stay at lofty levels until March."
Source: Steel Guru/Reuters
One industry source who had seen figures from China customs office, which are not due to be published until Thursday said "December imports were 16.38 million tonnes."
The previous monthly high was 16.073 million tonnes imported in June. Shipments to China, the world's top producer of coal, surged last year after output in Shanxi, its top coal mining province, slowed and demand in other parts of the world fell.
The imports surge was also partly caused by demand for coking coal from China's steelmakers who ramped up production to unprecedented levels in 2009.
It was not clear how much of December's record imports were coking coal, but China has suffered unexpectedly cold weather in the last two months that has strained power supplies and pushed power generators' coal stocks dangerously low.
Mr Lu PIng an analyst at China Merchants Securities said "The high imports were a result of insufficient supply in the domestic market. January is likely another month of high imports. He said that high imports will probably stay at lofty levels until March."
Source: Steel Guru/Reuters
Fall In Kazakhstan Non-Ferrous Metals Output
Crude lead output by Kazakhstan enterprises in 2009 decreased by 16.96% YoY to 87829 tonnes. At the same time crude zinc output decreased by 10.05 % to 328,834 tonnes and refines copper output decreased by 7.6% to 368,133 tonnes.
Copper ore extraction decreased by 4.12 % to 31,225 tonnes, copper-zinc ore extraction decreased by 4.09 % to 5034 tonnes. Zinc concentrate extraction grew by 8.05 % to 418,600 tonnes.
Kazakhstan has rich non-ferrous metals ores deposits such as lead, zinc, chromium, gold, bismuth, molybdenum, aluminium, manganese, rare-earth elements, and non-metallic deposits such as coal and phosphorites, etc.
Source: Steel Guru
Copper ore extraction decreased by 4.12 % to 31,225 tonnes, copper-zinc ore extraction decreased by 4.09 % to 5034 tonnes. Zinc concentrate extraction grew by 8.05 % to 418,600 tonnes.
Kazakhstan has rich non-ferrous metals ores deposits such as lead, zinc, chromium, gold, bismuth, molybdenum, aluminium, manganese, rare-earth elements, and non-metallic deposits such as coal and phosphorites, etc.
Source: Steel Guru
Australia's Iron Ore Exports At Record Levels
Australia's iron ore exports have surged to near record highs on heavy Chinese buying, new figures show, setting the scene for strong production results from BHP and Fortescue Metals Group tomorrow.
Shipments of the country's most valuable commodity export touched 32.8 million tonnes in November after a 69 per cent increase in the previous year, Bureau of Statistics figures supplied to UBS show.
The strong monthly performance was just shy of a record 33.2 million tonnes earlier in the year, and came despite a fall in shipments to Japan.
Buyers from China stepped in to pick up the slack. It bought 74 per cent of Australia's iron ore exports in the year to November.
The surge is a further sign of the industry's strength after Rio Tinto last week revealed record iron ore production results of 47.2 million tonnes in the fourth quarter.
An analyst at UBS, Glyn Lawcock, said he expected BHP to report more good news, amid signs global steel production may have expanded by 3 per cent in the quarter.
''We expect the company to report strong quarterly production figures underpinned by increased demand for raw materials from the global steel industry,'' he said in a note to clients.
Port Hedland figures last week also showed growth in iron ore exports continued into December. Shipments rose 6 per cent to 14.87 million tonnes.
Spot prices are about 90 per above last year's contract prices, and the figures add more weight to producers campaigning for hefty price rises in negotiations for benchmark prices for the 2010 financial year. Insatiable demand for iron ore is expected to push up contract prices by as much as 40 per cent. An analyst at Macquarie, Brendan Harris, said BHP might benefit more than Rio because it sells about 30 per cent of its iron ore on the spot market.
Exports of Australia's other huge commodity export - coal - had a quieter month in November, the ABS figures showed. Shipments of coking coal used in steel mills fell 4.3 per cent to 7.5 million tonnes, while thermal coal used in power generation fell 13.1 per cent to 10.8 million tonnes.
Despite these declines, analysts expect big price rises of coal because the spot market is more than 30 per cent above last year's contracts.
Source: Sydney Morning Herald
Shipments of the country's most valuable commodity export touched 32.8 million tonnes in November after a 69 per cent increase in the previous year, Bureau of Statistics figures supplied to UBS show.
The strong monthly performance was just shy of a record 33.2 million tonnes earlier in the year, and came despite a fall in shipments to Japan.
Buyers from China stepped in to pick up the slack. It bought 74 per cent of Australia's iron ore exports in the year to November.
The surge is a further sign of the industry's strength after Rio Tinto last week revealed record iron ore production results of 47.2 million tonnes in the fourth quarter.
An analyst at UBS, Glyn Lawcock, said he expected BHP to report more good news, amid signs global steel production may have expanded by 3 per cent in the quarter.
''We expect the company to report strong quarterly production figures underpinned by increased demand for raw materials from the global steel industry,'' he said in a note to clients.
Port Hedland figures last week also showed growth in iron ore exports continued into December. Shipments rose 6 per cent to 14.87 million tonnes.
Spot prices are about 90 per above last year's contract prices, and the figures add more weight to producers campaigning for hefty price rises in negotiations for benchmark prices for the 2010 financial year. Insatiable demand for iron ore is expected to push up contract prices by as much as 40 per cent. An analyst at Macquarie, Brendan Harris, said BHP might benefit more than Rio because it sells about 30 per cent of its iron ore on the spot market.
Exports of Australia's other huge commodity export - coal - had a quieter month in November, the ABS figures showed. Shipments of coking coal used in steel mills fell 4.3 per cent to 7.5 million tonnes, while thermal coal used in power generation fell 13.1 per cent to 10.8 million tonnes.
Despite these declines, analysts expect big price rises of coal because the spot market is more than 30 per cent above last year's contracts.
Source: Sydney Morning Herald
Mauritania To Increase Iron Ore Output
Societe Nationale Industrielle et Miniere (SNIM), based in Nouadhibou, Mauritania, has announced plans to set up a 4 million-tons-per-year concentrated iron ore plant in the African nation’s Al-Zouerate region.
According to Industrial Info Resources, Sugar Land, Texas, the plant is expected to be completed and ready for operation by 2011. The plant is part of an expansion project for SNIM, the national iron ore company of Mauritania, that includes a new seaport at Nouadhibou and an expansion of an existing mine.
The new port will replace an existing one and is scheduled to be operational from 2012. The port initially would be built with a handling capacity of about 170,000 tons, but it is expected to increase to more than 250,000 tons in the future, according to IIR.
In December of 2009, SNIM procured a $710 million loan from four institutions and four commercial banks to fund the expansion plan. The institutions include the African Development Bank, based in Côte d’Ivoire; the European Investment Bank, based in Luxembourg; the French Development Bank, based in Paris; and the Islamic Development Bank, based in Saudi Arabia.
The commercial banks are Societe Generale, based in Paris; KfW IPEX-Bank GmbH, based in Frankfurt, Germany; BNP Paribas SA, also based in Paris; and BHF-Bank International SA, based in Luxembourg. Montreal-based SNC-Lavalin Group Inc. will reportedly play a large role in the engineering and construction aspects of the project.
Mauritania’s SNIM is the largest producer of iron ore in North Africa and the second largest in all of Africa, according to IIR. The company expects its iron ore production and sales to reach 11.4 million tons in 2010, an estimate that is about 10 percent higher than 2009’s production of 10.4 million tons. When the new plant is fully operational, the production capacity of the facility is expected to reach 16 million tons per year by 2013.
Source: Recycling Today
According to Industrial Info Resources, Sugar Land, Texas, the plant is expected to be completed and ready for operation by 2011. The plant is part of an expansion project for SNIM, the national iron ore company of Mauritania, that includes a new seaport at Nouadhibou and an expansion of an existing mine.
The new port will replace an existing one and is scheduled to be operational from 2012. The port initially would be built with a handling capacity of about 170,000 tons, but it is expected to increase to more than 250,000 tons in the future, according to IIR.
In December of 2009, SNIM procured a $710 million loan from four institutions and four commercial banks to fund the expansion plan. The institutions include the African Development Bank, based in Côte d’Ivoire; the European Investment Bank, based in Luxembourg; the French Development Bank, based in Paris; and the Islamic Development Bank, based in Saudi Arabia.
The commercial banks are Societe Generale, based in Paris; KfW IPEX-Bank GmbH, based in Frankfurt, Germany; BNP Paribas SA, also based in Paris; and BHF-Bank International SA, based in Luxembourg. Montreal-based SNC-Lavalin Group Inc. will reportedly play a large role in the engineering and construction aspects of the project.
Mauritania’s SNIM is the largest producer of iron ore in North Africa and the second largest in all of Africa, according to IIR. The company expects its iron ore production and sales to reach 11.4 million tons in 2010, an estimate that is about 10 percent higher than 2009’s production of 10.4 million tons. When the new plant is fully operational, the production capacity of the facility is expected to reach 16 million tons per year by 2013.
Source: Recycling Today
Monday, January 18, 2010
China Discovered 1bn Tonnes Of Proven Iron Ore Reserves In 2009
China discovered almost 5 billion tons of iron ore reserves last year, of which 1 billion tons are proven reserves, according to statistics from the Ministry of Land and Resources.
1.04 billion tons of iron ore were found in Macheng Mine, Hebei Province, which will be a key exploration project for Hebei Iron and Steel Group this year.
In Benxi, Liaoning Province, 3 billion tons of iron ore deposits were discovered, and the potential iron ore reserves are estimated at 7 billion tons.
The iron ore deposits found in Yanzhou, Shandong Province and Panzhihua and Xichang, Sichuan Province amounted to 520 million and 168 million tons.
The newly found iron ore resources is expected to help ease the short supply of iron ore in China. According to statistics released by China's General Administration of Customs, the country imported 627 million tons of iron ores in 2009.
Source: China Knowledge
1.04 billion tons of iron ore were found in Macheng Mine, Hebei Province, which will be a key exploration project for Hebei Iron and Steel Group this year.
In Benxi, Liaoning Province, 3 billion tons of iron ore deposits were discovered, and the potential iron ore reserves are estimated at 7 billion tons.
The iron ore deposits found in Yanzhou, Shandong Province and Panzhihua and Xichang, Sichuan Province amounted to 520 million and 168 million tons.
The newly found iron ore resources is expected to help ease the short supply of iron ore in China. According to statistics released by China's General Administration of Customs, the country imported 627 million tons of iron ores in 2009.
Source: China Knowledge
Sunday, January 17, 2010
India Steel Minister Wants Ban On Iron Ore Exports
Steel Minister Virbhadra Singh today said that he subscribes to the view that there should be a ban on exports of iron ore.
"There is a demand that the country should not allow export of iron ore and it should be reserved for the domestic industry," he said at a stainless steel industry conference and exhibition 'Indinox 2010'.
He added that, "I subscribe to this view because we should export finished and value addition products instead of raw materials, as China is doing."
Singh said that the Centre government has imposed five per cent export duty on iron ore.
"The ministry of steel is looking into this issue and will discuss it with other ministries concerned like finance and commerce and industry," he added.
Singh said that he wants railway coaches to be made of stainless steel, which will offer multiple benefits like durability.
Source: PTI
"There is a demand that the country should not allow export of iron ore and it should be reserved for the domestic industry," he said at a stainless steel industry conference and exhibition 'Indinox 2010'.
He added that, "I subscribe to this view because we should export finished and value addition products instead of raw materials, as China is doing."
Singh said that the Centre government has imposed five per cent export duty on iron ore.
"The ministry of steel is looking into this issue and will discuss it with other ministries concerned like finance and commerce and industry," he added.
Singh said that he wants railway coaches to be made of stainless steel, which will offer multiple benefits like durability.
Source: PTI
China, Zimbabwe In Coal Link-Up
Zimbabwe's BMC Engineering Group of companies’ subsidiary, Stoat Mining, has commissioned the first phase of a US$150 million coking facility that will produce 400 000 tonnes of coking coal per annum. Coking coal is used mainly in the production of steel and other industrial applications.
The coking facility is being developed under a Build, Own, Operate and Transfer (Boot) agreement between Taiyuan Sanxing Coal Gasification Company, Hwange Colliery Company Limited and Stoat Mining.
Taiyuan Sanxing Coal Gasification Company’s principal activities in China are the production and sale of coke, washed fine coal, raw coal, coal chemical products and coal gas.
The Boot project vehicle known as Hwange Coal Gasification Company (HCGC) is set to complete the construction of the coking facility within the next 18 months whereafter it will operate the state-of-the-art coke battery to HCCL.
BMC Engineering chairman Dr Cephas Msipa Jnr said the HCGC project represents one of the most successful examples of private sector-based co-operation between China and Zimbabwe.
Taiyuan Sanxing Coal Gasification Company is listed on the Shanghai Stock Exchange, while HCCL is listed on the Zimbabwe Stock Exchange, JSE Securities Exchange and the London Stock Exchange.
Dr Msipa Jnr said in addition to the US$200 million that the coke battery will generate in exports annually there are two other major developments that may see the group achieve additional coal exports exceeding US$250 million per annum.
“Firstly, we had to set up a hydraulic brick-processing facility that will reduce the quantity of refactory bricks and materials that we will need to import from China in the second phase of construction.
“Secondly, we acquired Chibondo Mine quarry, about seven kilometres north of Hwange town, and in the process of extracting aggregate materials for construction, we have discovered a substantial thermal coal deposit.
“Given our current mining and crushing capacity, we are in a position to immediately mine and export over 250 000 tonnes of coal per month,” explained Dr Msipa.
HCCL managing director Mr Fred Moyo said: “We have a 25 percent equity in the coke oven venture. We are therefore in a position to influence company policy (Hwange Coal Gasification Company) at board level. Furthermore, we have to pay for our equity in kind through coking coal and we are therefore able to absorb the investment comfortably in our budgeted cash flow.”
Meanwhile, BMC Engineering Group has also unveiled a six-metre container that is set to revolutionise the bulk shipping and transport industry in the Sadc region.
The bulk container, designed by Dr Cephas Msipa Jnr, is made from locally manufactured steel and polypipylene material.
The development of the container has been motivated by the development of the new coking facility.
“After overcoming the construction challenges, HCGC found itself faced with the logistic nightmare of loading and transporting almost a thousand tonnes of material a day. Our railway system is in a parlous state after almost a decade of economic sanctions.
“Coke exports to the north are now achieved largely by road and the one tonne bags that are currently in use are manually loaded and cumbersome to handle. We therefore decided to design and construct a container from locally available materials. BMC Engineering initiative has been enthusiastically supported by the offices of Local Government, Urban and Rural Development Minister Dr Ignatius Chombo and Vice-President Joyce Mujuru. Both view the container as an opportunity to introduce much-needed employment opportunities and cash to rural areas via village-based industrial centres that can manufacture the containers,” explained Dr Msipa Jnr.
BMC is now working in consultation with various stakeholders on a strategy to achieve the production of up to 500 000 containers per annum.
“In 1962 Zimbabwe exported 1,5 million tonnes of minerals using the existing rail network and coal-fired steam locomotives. We should be able to achieve those levels within a couple of years using the bulktainer and modern diesel-electric locomotives to export minerals such as coal, ferrochrome and iron ore valued at over US$1,5 billion per annum.”
Mining experts note that there are huge coal reserves in Zimbabwe containing both energy coal and coking coal that are not being fully exploited.
There are important coal reserves in Zimbabwe estimated at 30 billion tonnes, of which 1,3 billion tonnes are recoverable, by surface mining.
Source: Sunday Mail, Zimbabwe
The coking facility is being developed under a Build, Own, Operate and Transfer (Boot) agreement between Taiyuan Sanxing Coal Gasification Company, Hwange Colliery Company Limited and Stoat Mining.
Taiyuan Sanxing Coal Gasification Company’s principal activities in China are the production and sale of coke, washed fine coal, raw coal, coal chemical products and coal gas.
The Boot project vehicle known as Hwange Coal Gasification Company (HCGC) is set to complete the construction of the coking facility within the next 18 months whereafter it will operate the state-of-the-art coke battery to HCCL.
BMC Engineering chairman Dr Cephas Msipa Jnr said the HCGC project represents one of the most successful examples of private sector-based co-operation between China and Zimbabwe.
Taiyuan Sanxing Coal Gasification Company is listed on the Shanghai Stock Exchange, while HCCL is listed on the Zimbabwe Stock Exchange, JSE Securities Exchange and the London Stock Exchange.
Dr Msipa Jnr said in addition to the US$200 million that the coke battery will generate in exports annually there are two other major developments that may see the group achieve additional coal exports exceeding US$250 million per annum.
“Firstly, we had to set up a hydraulic brick-processing facility that will reduce the quantity of refactory bricks and materials that we will need to import from China in the second phase of construction.
“Secondly, we acquired Chibondo Mine quarry, about seven kilometres north of Hwange town, and in the process of extracting aggregate materials for construction, we have discovered a substantial thermal coal deposit.
“Given our current mining and crushing capacity, we are in a position to immediately mine and export over 250 000 tonnes of coal per month,” explained Dr Msipa.
HCCL managing director Mr Fred Moyo said: “We have a 25 percent equity in the coke oven venture. We are therefore in a position to influence company policy (Hwange Coal Gasification Company) at board level. Furthermore, we have to pay for our equity in kind through coking coal and we are therefore able to absorb the investment comfortably in our budgeted cash flow.”
Meanwhile, BMC Engineering Group has also unveiled a six-metre container that is set to revolutionise the bulk shipping and transport industry in the Sadc region.
The bulk container, designed by Dr Cephas Msipa Jnr, is made from locally manufactured steel and polypipylene material.
The development of the container has been motivated by the development of the new coking facility.
“After overcoming the construction challenges, HCGC found itself faced with the logistic nightmare of loading and transporting almost a thousand tonnes of material a day. Our railway system is in a parlous state after almost a decade of economic sanctions.
“Coke exports to the north are now achieved largely by road and the one tonne bags that are currently in use are manually loaded and cumbersome to handle. We therefore decided to design and construct a container from locally available materials. BMC Engineering initiative has been enthusiastically supported by the offices of Local Government, Urban and Rural Development Minister Dr Ignatius Chombo and Vice-President Joyce Mujuru. Both view the container as an opportunity to introduce much-needed employment opportunities and cash to rural areas via village-based industrial centres that can manufacture the containers,” explained Dr Msipa Jnr.
BMC is now working in consultation with various stakeholders on a strategy to achieve the production of up to 500 000 containers per annum.
“In 1962 Zimbabwe exported 1,5 million tonnes of minerals using the existing rail network and coal-fired steam locomotives. We should be able to achieve those levels within a couple of years using the bulktainer and modern diesel-electric locomotives to export minerals such as coal, ferrochrome and iron ore valued at over US$1,5 billion per annum.”
Mining experts note that there are huge coal reserves in Zimbabwe containing both energy coal and coking coal that are not being fully exploited.
There are important coal reserves in Zimbabwe estimated at 30 billion tonnes, of which 1,3 billion tonnes are recoverable, by surface mining.
Source: Sunday Mail, Zimbabwe
Pakistan Urged To Provide Better Coal Transportation
To increase Pakistan's coal production by 20 percent, the country's Coal Sub-Group has proposed that focus must be made on the improvement of underground transportation of coal and construction of roads from coal bearing zone to the market, sources told Daily Times on Saturday.
The Coal Sub-Group emphasised on greater exploitation of the indigenous energy resources, which was an important strategy in Energy Security Action Plan, which envisaged the share of coal from the 6 percent to 19 percent in 2019, the sources maintained.
The group was of the view that the provincial governments were unable to provide the requisite assistance to the private coal miners to overcome the difficulties.
The sources said that in January 2007, Energy Logistic Committee (ELC) was constituted under the chairmanship of the secretary Petroleum and Natural Resources and the ELC constituted three sup-groups on coal, gas and oil, headed by respective director generals.
In order to achieve the objectives of the ELC, the Coal Sub-Group proposed that focus must be made on the improvement of underground transportation of coal and construction of road from coal bearing zone to the market through an umbrella PC-I.
The Coal-Sub Group had submitted its detailed report proposing to provide technical know-how to the private mine owners to make the transportation system efficient both underground and surface components and to increase the production by 20 percent in order to achieve the targets specified in the Energy Security Action Plan
The impediments hampering transportation system were the lack of technical and financial capacity of small mine owners to develop infrastructure and mechanisation of mines to make the transportation system efficient and manual underground transportation and non-availability of road.
The sources claimed that total estimated coal resources of Pakistan were more than 185 billion tonnes. The present net demand of coal in the country was about 10.1 million tonnes out of which 4.1 million tonnes were produced locally and 6 million tonnes were imported.
About 90 percent of coal mines were operated by small mine owners and average annual production remains at 4.1 million tonnes, out of which more than 90 percent was consumed in the brick kilns industry. The share of coal in the overall energy mix during the last five decades declined from 68 percent in 1948 to 10.1 percent in 2009.
Average share of Pakistan Railways in the transportation of coal was about 30 percent and the remaining imported and indigenous coal was transported through roads. The sources claimed that the coal was intensively used in power generation, as an industrial fuel, brick kilns, cement, coal briquettes, coal gasification and underground coal gasification.
Under the umbrella project the objectives would be completed in five years time starting from 2009-10. The implementation of the scheme would in turn augment coal production by 15-20 percent annually.
For preparation PC-I provinces and special areas were requested to provide their requirements for construction of roads from mine to market in the coal bearing zones in their area. In response the governments of Balochistan and Sindh have conveyed their proposals however rest of the federating units have not sent their proposals despite repeated reminders.
Source: Daily Times, Pakistan
The Coal Sub-Group emphasised on greater exploitation of the indigenous energy resources, which was an important strategy in Energy Security Action Plan, which envisaged the share of coal from the 6 percent to 19 percent in 2019, the sources maintained.
The group was of the view that the provincial governments were unable to provide the requisite assistance to the private coal miners to overcome the difficulties.
The sources said that in January 2007, Energy Logistic Committee (ELC) was constituted under the chairmanship of the secretary Petroleum and Natural Resources and the ELC constituted three sup-groups on coal, gas and oil, headed by respective director generals.
In order to achieve the objectives of the ELC, the Coal Sub-Group proposed that focus must be made on the improvement of underground transportation of coal and construction of road from coal bearing zone to the market through an umbrella PC-I.
The Coal-Sub Group had submitted its detailed report proposing to provide technical know-how to the private mine owners to make the transportation system efficient both underground and surface components and to increase the production by 20 percent in order to achieve the targets specified in the Energy Security Action Plan
The impediments hampering transportation system were the lack of technical and financial capacity of small mine owners to develop infrastructure and mechanisation of mines to make the transportation system efficient and manual underground transportation and non-availability of road.
The sources claimed that total estimated coal resources of Pakistan were more than 185 billion tonnes. The present net demand of coal in the country was about 10.1 million tonnes out of which 4.1 million tonnes were produced locally and 6 million tonnes were imported.
About 90 percent of coal mines were operated by small mine owners and average annual production remains at 4.1 million tonnes, out of which more than 90 percent was consumed in the brick kilns industry. The share of coal in the overall energy mix during the last five decades declined from 68 percent in 1948 to 10.1 percent in 2009.
Average share of Pakistan Railways in the transportation of coal was about 30 percent and the remaining imported and indigenous coal was transported through roads. The sources claimed that the coal was intensively used in power generation, as an industrial fuel, brick kilns, cement, coal briquettes, coal gasification and underground coal gasification.
Under the umbrella project the objectives would be completed in five years time starting from 2009-10. The implementation of the scheme would in turn augment coal production by 15-20 percent annually.
For preparation PC-I provinces and special areas were requested to provide their requirements for construction of roads from mine to market in the coal bearing zones in their area. In response the governments of Balochistan and Sindh have conveyed their proposals however rest of the federating units have not sent their proposals despite repeated reminders.
Source: Daily Times, Pakistan
POSCO To Enter Lithium Market
A deal between Korean steel producer, POSCO and Etna Resources Inc. is set to double the steel company's investment in non-ferrous metals this year.
With the price of Lithium rising, due to its use in portable electronics, and electric vehicle production ramping up, investment in lithium production looks like a sure bet for POSCO.
Etna Resources' letter of intent for the deal with POSCO is worth CDN $5 million.
POSCO, the Pohang Iron and Steel Company, is registered on both the New York Stock Exchange and the Korea Stock Exchange. It is the second largest steel producer in the world, by market value. Etna Resources, Inc. trades on the Canadian Venture Exchange. Etna Resources, Inc. is soon to be renamed Pan American Lithium Corp.
Seeing the non-ferrous metals Lithium and Magnesium as "the new growth engines for the next generation of the company," POSCO CEO Joon-yang Chung also signed a letter of understanding to build a magnesium refinery in Gangwon Province, South Korea, last November. Building the refinery should save the company some USD $30 million by producing magnesium ingots locally, over importing them from China.
POSCO has 30 days to complete its due diligence on Etna Resources' lithium properties. The CDN $5 million funding covers the Etna Phase One development costs for the exploitable mineral brine recovery at the Cierro Prieto Geothermal Plant, 30 km south of Mexicali, Baja California, Mexico.
According to a report at Axcessnews, the rights to this site were optioned by Etna Resources in Q4, 2009, when the annual recoverable minerals were estimated at between $450 to $500 million. There are six square miles of existing sequential evaporation ponds where the brines are recovered and the metals concentrated to almost twelve times original salt content.
Source: Newsblaze
With the price of Lithium rising, due to its use in portable electronics, and electric vehicle production ramping up, investment in lithium production looks like a sure bet for POSCO.
Etna Resources' letter of intent for the deal with POSCO is worth CDN $5 million.
POSCO, the Pohang Iron and Steel Company, is registered on both the New York Stock Exchange and the Korea Stock Exchange. It is the second largest steel producer in the world, by market value. Etna Resources, Inc. trades on the Canadian Venture Exchange. Etna Resources, Inc. is soon to be renamed Pan American Lithium Corp.
Seeing the non-ferrous metals Lithium and Magnesium as "the new growth engines for the next generation of the company," POSCO CEO Joon-yang Chung also signed a letter of understanding to build a magnesium refinery in Gangwon Province, South Korea, last November. Building the refinery should save the company some USD $30 million by producing magnesium ingots locally, over importing them from China.
POSCO has 30 days to complete its due diligence on Etna Resources' lithium properties. The CDN $5 million funding covers the Etna Phase One development costs for the exploitable mineral brine recovery at the Cierro Prieto Geothermal Plant, 30 km south of Mexicali, Baja California, Mexico.
According to a report at Axcessnews, the rights to this site were optioned by Etna Resources in Q4, 2009, when the annual recoverable minerals were estimated at between $450 to $500 million. There are six square miles of existing sequential evaporation ponds where the brines are recovered and the metals concentrated to almost twelve times original salt content.
Source: Newsblaze
Friday, January 15, 2010
Copper In Shanghai Warehouses Rises
Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 2 percent from one week earlier, while deliverable aluminium inventories climbed 3 percent, the exchange said on Friday.
Deliverable copper inventories rose to 100,588 tonnes from 98,814 tonnes a week ago, while copper stocks on warrant declined 46 tonnes to 33,669 tonnes.
Deliverable aluminium inventories rose to 307,453 tonnes from 297,722 tonnes one week earlier. Stocks on warrant gained 8,005 tonnes to 266,056 tonnes.
Deliverable zinc inventories rose to 222,900 tonnes from 221,900 tonnes last week, and stocks on warrant rose 7,605 tonnes to 171,820 tonnes.
Source: Alibaba
Deliverable copper inventories rose to 100,588 tonnes from 98,814 tonnes a week ago, while copper stocks on warrant declined 46 tonnes to 33,669 tonnes.
Deliverable aluminium inventories rose to 307,453 tonnes from 297,722 tonnes one week earlier. Stocks on warrant gained 8,005 tonnes to 266,056 tonnes.
Deliverable zinc inventories rose to 222,900 tonnes from 221,900 tonnes last week, and stocks on warrant rose 7,605 tonnes to 171,820 tonnes.
Source: Alibaba
Thursday, January 14, 2010
Zambia Copper Output To Hit Record Level In 2010
STANDARD Chartered Bank says Zambia’s copper output this year is set to exceed the peak of 720,000 tonnes recorded in the 1960s when the country was the fourth largest world copper producer.
The production estimate is against 644,000 metric tonnes projected for last year.
Speaking during an economic forum in Lusaka, Standard Chartered Bank Africa regional head of research Razia Khan said Zambia has continued to register good growth in the last couple of years with mining in 2009 accounting for 21.4 percent, construction 15.5 percent and agriculture 7.1 percent of Gross Domestic Product.
Ms Khan said the commodity price boom on the international market has led to greater investment in Zambia’s mines.
She said the metal recovery on the international market will help generate wealth and create confidence.
“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.
Ms Khan said there are concerns about copper inventory levels in China and whether the price of copper would finish at around US$ 7,500 per tonne in 2010.
She said although Zambia is headed for a boom in the mining sector, there are structural bottlenecks that could affect growth, citing poor infrastructure like roads, railway and availability of power.
She said it is important to know whether the state of roads and railway system will sustain growth in copper.
“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.
“2010 outlook is good and mining sector need to think long term. There is need to take into account the fluctuation, productivity and look at contribution of mines into a more holistic manner,” she said.
Ms Khan said there is a strong view from the civil society to ensure that there is some payback from the mines.
“Zambia’s biggest problem is the large informal sector. There is need to widen the tax reform,” she said.
She noted that if Zambia could grow its economy at 6.3 percent during the global crisis period, there is potential for double digit growth, which needs holistic contribution from all sectors.
“Its not just what is happening to copper that matters but what is happening to the exchange rates which have an impact on trade. Zambia has had trade surplus since June and our analysis is that trade balancing will remain in surplus,” she said.
Ms Khan said the Bank of Zambia now has a healthy reserve position and its activity in the market will help in smoothing Kwacha volatility.
She also noted that maintaining single digit inflation would require hard work on the part of Government.
“If the labour unions continue to demand double digit figures, a wage growth of 20 percent will have inflationary pressure,” she said.
Source: Lusaka Times/Zambia Daily Mail
The production estimate is against 644,000 metric tonnes projected for last year.
Speaking during an economic forum in Lusaka, Standard Chartered Bank Africa regional head of research Razia Khan said Zambia has continued to register good growth in the last couple of years with mining in 2009 accounting for 21.4 percent, construction 15.5 percent and agriculture 7.1 percent of Gross Domestic Product.
Ms Khan said the commodity price boom on the international market has led to greater investment in Zambia’s mines.
She said the metal recovery on the international market will help generate wealth and create confidence.
“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.
Ms Khan said there are concerns about copper inventory levels in China and whether the price of copper would finish at around US$ 7,500 per tonne in 2010.
She said although Zambia is headed for a boom in the mining sector, there are structural bottlenecks that could affect growth, citing poor infrastructure like roads, railway and availability of power.
She said it is important to know whether the state of roads and railway system will sustain growth in copper.
“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.
“2010 outlook is good and mining sector need to think long term. There is need to take into account the fluctuation, productivity and look at contribution of mines into a more holistic manner,” she said.
Ms Khan said there is a strong view from the civil society to ensure that there is some payback from the mines.
“Zambia’s biggest problem is the large informal sector. There is need to widen the tax reform,” she said.
She noted that if Zambia could grow its economy at 6.3 percent during the global crisis period, there is potential for double digit growth, which needs holistic contribution from all sectors.
“Its not just what is happening to copper that matters but what is happening to the exchange rates which have an impact on trade. Zambia has had trade surplus since June and our analysis is that trade balancing will remain in surplus,” she said.
Ms Khan said the Bank of Zambia now has a healthy reserve position and its activity in the market will help in smoothing Kwacha volatility.
She also noted that maintaining single digit inflation would require hard work on the part of Government.
“If the labour unions continue to demand double digit figures, a wage growth of 20 percent will have inflationary pressure,” she said.
Source: Lusaka Times/Zambia Daily Mail
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