Qatar Aluminium (Qatalum), will 0 inaugurate its new plant in Mesaieed Industrial City , 40km south if the nation’s capital, Doha, on April 12,.
The new plant aims to produce 585,000 tonnes per year of primary aluminium, which will see the company imports up to 1.1mn tonnes of alumina, 223,000 tonnes of calcined petroleum coke and 50,000 tonnes of liquid coal tar pitch.
Qatalum has incorporated port and storage areas into the new plant to receive these raw materials.
Chief executive Jan Arve Haugan described the plant as “the world’s most efficient and environmentally friendly aluminium smelter …. leading the way for the Gulf in high-quality aluminium products, cutting-edge technology and operational excellence.”
The company made it sfirst shipment of aluminium foundry alloys at the end of 2009.
Showing posts with label aluminium. Show all posts
Showing posts with label aluminium. Show all posts
Sunday, March 28, 2010
Wednesday, March 10, 2010
China Copper Imports Show 10 Per Cent Rise
Copper imports into China rose 10 percent to 322.822 tonnes in February, according to data from China’s customs service.
China imported 280,000 tons of scrap copper in February compared with 340,000 tons in January. Imports of aluminium and the metal’s products were 64,356 tons last month, compared with 97,633 tons a month ago.
China imported 280,000 tons of scrap copper in February compared with 340,000 tons in January. Imports of aluminium and the metal’s products were 64,356 tons last month, compared with 97,633 tons a month ago.
Wednesday, February 3, 2010
ENRC Reports Increased Output
Kazakh miner Eurasian Natural Resources Corp. PLC said on Wednesday that Q4 ferroalloys production was up 55% from a year earlier. Output rose to 448,000 metric tons, up from 290,000 tons a year earlier.
ENRC also produced 984,000 tons of saleable chrome ore in the three months to Dec. 31, compared with 704,000 tons during the same period a year earlier while the company’s iron division mined 10.6 million tons of ore, a rise of 74% from 6.11 million tons a year earlier.
Aluminium output was 36,000 tons for the quarter, a rise of 16% from the 31,000 tons produced a year earlier.
The company said late last year that it expects 2010's full-year output at its core ferrochrome and iron ore operations to match 2008 levels. Almost a third of its production capacity was idled for much of 2009.
ENRC also produced 984,000 tons of saleable chrome ore in the three months to Dec. 31, compared with 704,000 tons during the same period a year earlier while the company’s iron division mined 10.6 million tons of ore, a rise of 74% from 6.11 million tons a year earlier.
Aluminium output was 36,000 tons for the quarter, a rise of 16% from the 31,000 tons produced a year earlier.
The company said late last year that it expects 2010's full-year output at its core ferrochrome and iron ore operations to match 2008 levels. Almost a third of its production capacity was idled for much of 2009.
Sunday, September 20, 2009
Orissa, NALCO Plan Aluminium Park JV
The Orissa government and Navratna public sector blue-chip National Aluminium Company Ltd (NALCO) on Saturday signed a memorandum of understanding (MoU) for establishment of an aluminium park at Angul at an estimated investment of Rs 75 crore.
The proposed park will be a 50:50 joint-venture between Nalco and the state-owned Orissa Industrial Infrastructure Development Corporation (IDCO).
The MoU was signed by Mr P K Dey, general manager (business development), Nalco and Srikant Kabi, managing director IDCO in the presence of chief minister Naveen Patnaik, industry minister Raghunath Mohanty, Nalco chairman and managing director C R Pradhan, chief secretary T K Mishra, industry secretary Sourabh Garg and several other dignitaries.
Speaking on the occasion, chief minister Naveen Patnaik said establishment of the aluminium park would help entrepreneurs to set up downstream industries near the Nalco's smelter at Angul.
"My government's Industrial Policy 2007 and Medium Small Micro Enterprises [MSME] Policy 2009 accord highest priority for development of ancillary and downstream industries in MSME sector for greater value addition of steel and aluminium products in the state. The proposed park is yet another step to provide a platform for MSME industries to come up and grow," Mr Patnaik observed.
NALCO CMD Mr Pradhan said MSMEs coming up in the 200-acre proposed park would save a lot of cost as it will be located close to the smelter plant.
"Being close to the smelter plant, transfer of alumina in molten stage is possible. This would reduce the cost of production," Mr Pradhan said, adding, the MSMEs in the proposed park would have easy access to water, coal, electricity and other required materials.
The ancillary and downstream units identified to be set up in the proposed industrial park in the alumina/aluminium sectors will be caustic soda, calcined petroleum coke, coal tar pitch, aluminium fluoride, aluminium conductors, aluminium extrusions, aluminium castings, slugs and circles; and aluminium power.
"I hope the initiative will trigger similar downstream and ancillary industrial parks in close vicinity of the new mega projects being set up in aluminium, steel and power sectors in Orissa," industry minister Mr Mohanty said.
Source: Economic Times
The proposed park will be a 50:50 joint-venture between Nalco and the state-owned Orissa Industrial Infrastructure Development Corporation (IDCO).
The MoU was signed by Mr P K Dey, general manager (business development), Nalco and Srikant Kabi, managing director IDCO in the presence of chief minister Naveen Patnaik, industry minister Raghunath Mohanty, Nalco chairman and managing director C R Pradhan, chief secretary T K Mishra, industry secretary Sourabh Garg and several other dignitaries.
Speaking on the occasion, chief minister Naveen Patnaik said establishment of the aluminium park would help entrepreneurs to set up downstream industries near the Nalco's smelter at Angul.
"My government's Industrial Policy 2007 and Medium Small Micro Enterprises [MSME] Policy 2009 accord highest priority for development of ancillary and downstream industries in MSME sector for greater value addition of steel and aluminium products in the state. The proposed park is yet another step to provide a platform for MSME industries to come up and grow," Mr Patnaik observed.
NALCO CMD Mr Pradhan said MSMEs coming up in the 200-acre proposed park would save a lot of cost as it will be located close to the smelter plant.
"Being close to the smelter plant, transfer of alumina in molten stage is possible. This would reduce the cost of production," Mr Pradhan said, adding, the MSMEs in the proposed park would have easy access to water, coal, electricity and other required materials.
The ancillary and downstream units identified to be set up in the proposed industrial park in the alumina/aluminium sectors will be caustic soda, calcined petroleum coke, coal tar pitch, aluminium fluoride, aluminium conductors, aluminium extrusions, aluminium castings, slugs and circles; and aluminium power.
"I hope the initiative will trigger similar downstream and ancillary industrial parks in close vicinity of the new mega projects being set up in aluminium, steel and power sectors in Orissa," industry minister Mr Mohanty said.
Source: Economic Times
Wednesday, September 16, 2009
ENRC, CAMEC In Merger Talks
Eurasian Natural Resources Corp. PLC Wednesday said it is in "advanced discussions" to pay 20 pence a share for Central African Mining and Exploration Corp. PLC.
However, ENRC cautioned that a deal hadn't yet been finalized: "Whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed," the company said in a statement.
London-listed ENRC produces ferrochrome, iron ore and aluminium at operations in Kazakhstan, while CAMEC's main operations are copper and cobalt production in Congo.
Source: Trading Markets
However, ENRC cautioned that a deal hadn't yet been finalized: "Whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed," the company said in a statement.
London-listed ENRC produces ferrochrome, iron ore and aluminium at operations in Kazakhstan, while CAMEC's main operations are copper and cobalt production in Congo.
Source: Trading Markets
Thursday, July 16, 2009
Imperial Aluminum Buys Bankrupt Plant
Chicago-based Imperial Zinc Corporation has purchased the former Aluminum One manufacturing facility on Roy Owens Boulevard in Scottsboro.
The Scottsboro facility will be known as Imperial Aluminum - Scottsboro, LLC. It will not be opened immediately due to market conditions.
The purchase from Ohio-based Commercial Alloys was approved by an Ohio bankruptcy court earlier this month. Imperial Zinc also acquired a smelter operation located in Minerva, Ohio as part of the $1.3 million deal.
“The Jackson County EDA and the Scottsboro IDB along with our city and county officials are excited about this news,” Jackson County Economic Development Authority President and CEO Goodrich “Dus” Rogers said Tuesday. “This facility was built for a specific use (metal recycling and smelting) and we are optimistic that the new owners will be back in production once the economy improves and the demand for aluminum increases."
Rogers said he anticipated the company would be similar in size and operations to Aluminum One. That facility employed approximately 70 people.
Imperial Zinc is currently operating the Ohio plant. It has a potential output of 8 to 9 million pounds while the Scottsboro facility has a capacity of 6 to 7 million pounds. Company officials told Platts Metals Week that the Minerva facility could be at full capacity by year's end.
The new owners acquired approximately 3 million pounds of aluminum. A company spokesperson told Platts that the inventory was worth "a couple of million dollars."
Imperial said it would wait until market conditions improved before opening the Scottsboro facility. It converts aluminum alloy to sell to diecasters and processes zinc scrap.
"We'd like to open (the Scottsboro plant) tomorrow," the company said in a press release. "But we're not going to jump into a market of oversupply and fight for business."
In a separate correspondence a company spokesperson said, "we hope to be back up and running by the end of this year, but production will be based on the economy."
"We welcome Imperial Aluminum - Scottsboro LLC to Jackson County. We look forward to working with them and seeing them employing Jackson County citizens," Rogers said.
Aluminum One located in Scottsboro in early 2007, operating a secondary aluminum processing and tolling facility, including the shredding and melting of scrap in the 60,000 square foot building located across the road from Polyamide High Performance, Inc. The company bought the plant from Allied Metals. It went into bankruptcy proceedings last year.
Source: Scottsboro Daily Sentinel
The Scottsboro facility will be known as Imperial Aluminum - Scottsboro, LLC. It will not be opened immediately due to market conditions.
The purchase from Ohio-based Commercial Alloys was approved by an Ohio bankruptcy court earlier this month. Imperial Zinc also acquired a smelter operation located in Minerva, Ohio as part of the $1.3 million deal.
“The Jackson County EDA and the Scottsboro IDB along with our city and county officials are excited about this news,” Jackson County Economic Development Authority President and CEO Goodrich “Dus” Rogers said Tuesday. “This facility was built for a specific use (metal recycling and smelting) and we are optimistic that the new owners will be back in production once the economy improves and the demand for aluminum increases."
Rogers said he anticipated the company would be similar in size and operations to Aluminum One. That facility employed approximately 70 people.
Imperial Zinc is currently operating the Ohio plant. It has a potential output of 8 to 9 million pounds while the Scottsboro facility has a capacity of 6 to 7 million pounds. Company officials told Platts Metals Week that the Minerva facility could be at full capacity by year's end.
The new owners acquired approximately 3 million pounds of aluminum. A company spokesperson told Platts that the inventory was worth "a couple of million dollars."
Imperial said it would wait until market conditions improved before opening the Scottsboro facility. It converts aluminum alloy to sell to diecasters and processes zinc scrap.
"We'd like to open (the Scottsboro plant) tomorrow," the company said in a press release. "But we're not going to jump into a market of oversupply and fight for business."
In a separate correspondence a company spokesperson said, "we hope to be back up and running by the end of this year, but production will be based on the economy."
"We welcome Imperial Aluminum - Scottsboro LLC to Jackson County. We look forward to working with them and seeing them employing Jackson County citizens," Rogers said.
Aluminum One located in Scottsboro in early 2007, operating a secondary aluminum processing and tolling facility, including the shredding and melting of scrap in the 60,000 square foot building located across the road from Polyamide High Performance, Inc. The company bought the plant from Allied Metals. It went into bankruptcy proceedings last year.
Source: Scottsboro Daily Sentinel
Monday, June 22, 2009
UK Aluminium Smelter Goes Into Administration
An aluminium smelting firm in Congleton, England, has been placed into administration leading to the loss of 61 jobs. Richard Fleming and Paul Dumbell from the Manchester office of KPMG have been appointed as joint administrator to the firm, FE Mottram (Non-Ferrous) Ltd which has temporarily ceased trading.
The company, which was set up in 1973, makes a wide range of casting alloys, hardeners and de-oxidants. It is one of the largest secondary aluminium smelters in the UK, with a capacity to produce 25,000 tonnes per year.
Dumbell said that the firm had been hit hard by the global downturn, “and in particular, by the reduced level of orders from car manufacturers and the reducing level of metal prices”.
He said that it intended to preserve the site in the hope of finding a buyer.
Neither the Sheffield-based Ferro-Titanium business of F.E. Mottram Limited, or the nearby Dunstan and Wragg business are affected by the administration and both continue to trade as normal.
In 2007, the company made a profit of £384,000 on sales of more than £38.3m.
Source: Crain's Manchester Business
The company, which was set up in 1973, makes a wide range of casting alloys, hardeners and de-oxidants. It is one of the largest secondary aluminium smelters in the UK, with a capacity to produce 25,000 tonnes per year.
Dumbell said that the firm had been hit hard by the global downturn, “and in particular, by the reduced level of orders from car manufacturers and the reducing level of metal prices”.
He said that it intended to preserve the site in the hope of finding a buyer.
Neither the Sheffield-based Ferro-Titanium business of F.E. Mottram Limited, or the nearby Dunstan and Wragg business are affected by the administration and both continue to trade as normal.
In 2007, the company made a profit of £384,000 on sales of more than £38.3m.
Source: Crain's Manchester Business
Tuesday, May 26, 2009
Goldman Says "Worst Is Over" For Raw Materials Demand
The “worst is over” for raw materials demand and investors should increase investment in companies including BHP Billiton Ltd. and Newcrest Mining Ltd., according to Goldman Sachs JBWere Pty.
“We are becoming increasingly confident that the period of weakest demand for raw materials is behind us,” analysts led by Melbourne-based Malcolm Southwood said yesterday in a report. “We have also seen the bottom of the price cycle for base metals, and particularly for copper, which remains the most supply-constrained, and therefore our preferred commodity for investment exposure.”
Rio Tinto Group, the third-largest mining company, is hopeful of a “V-shape” recovery in China, the world’s biggest metals buyer, an executive said today. The Asian nation increased imports of copper, aluminum and iron ore to a record in April as buyers replenished stockpiles for the country’s 4 trillion yuan ($586 billion) stimulus.
“The rate of copper and iron ore imports into China has been extraordinary and certainly implies a degree of restocking,” Goldman’s Southwood said. “The bottom line here is that we think economic sentiment, demand for raw materials, and commodities prices will be better in 12 months’ time and 24 months’ time than they are now.”
BHP rose 1.2 percent to A$34.29 at the 4:10 p.m. Sydney time close on the Australian stock exchange. Newcrest, Australia’s biggest gold producer, advanced 1.9 percent to A$32. Goldman reiterated “buy” recommendations on BHP, the world’s largest mining company, and Newcrest, it said in the report.
Copper futures in London have jumped 52 percent this year as demand for pipes and wires rebounds and China boosts imports. New supplies probably won’t meet the estimated additional 4 million metric tons of demand by 2013, analysts at Macquarie Group Ltd. led by Jim Lennon said today in an e-mailed report.
“What is unshakeable is our belief that China and India and the other emerging economies will be the key engines of any return to world growth and commodity demand growth,” Rio Tinto’s head of iron ore Sam Walsh said at a resources industry presentation in Canberra today. London-based Rio is the world’s second-largest exporter of iron ore.
Chinese imports of iron ore and coal will increase by more than previously forecast this year and the nation is now setting a floor for prices, Goldman said in the report.
Australia’s economy will benefit from positive signs on exports to China, its biggest trading partner, and other developing nations, Treasurer Wayne Swan said today.
Goldman also reiterated “buy” ratings on Equinox Minerals Ltd., PanAust Ltd., Felix Resources Ltd., Whitehaven Coal Ltd., Lihir Gold Ltd., Sino Gold Mining Ltd. and Dominion Mining Ltd, the report said.
Source: Bloomberg
“We are becoming increasingly confident that the period of weakest demand for raw materials is behind us,” analysts led by Melbourne-based Malcolm Southwood said yesterday in a report. “We have also seen the bottom of the price cycle for base metals, and particularly for copper, which remains the most supply-constrained, and therefore our preferred commodity for investment exposure.”
Rio Tinto Group, the third-largest mining company, is hopeful of a “V-shape” recovery in China, the world’s biggest metals buyer, an executive said today. The Asian nation increased imports of copper, aluminum and iron ore to a record in April as buyers replenished stockpiles for the country’s 4 trillion yuan ($586 billion) stimulus.
“The rate of copper and iron ore imports into China has been extraordinary and certainly implies a degree of restocking,” Goldman’s Southwood said. “The bottom line here is that we think economic sentiment, demand for raw materials, and commodities prices will be better in 12 months’ time and 24 months’ time than they are now.”
BHP rose 1.2 percent to A$34.29 at the 4:10 p.m. Sydney time close on the Australian stock exchange. Newcrest, Australia’s biggest gold producer, advanced 1.9 percent to A$32. Goldman reiterated “buy” recommendations on BHP, the world’s largest mining company, and Newcrest, it said in the report.
Copper futures in London have jumped 52 percent this year as demand for pipes and wires rebounds and China boosts imports. New supplies probably won’t meet the estimated additional 4 million metric tons of demand by 2013, analysts at Macquarie Group Ltd. led by Jim Lennon said today in an e-mailed report.
“What is unshakeable is our belief that China and India and the other emerging economies will be the key engines of any return to world growth and commodity demand growth,” Rio Tinto’s head of iron ore Sam Walsh said at a resources industry presentation in Canberra today. London-based Rio is the world’s second-largest exporter of iron ore.
Chinese imports of iron ore and coal will increase by more than previously forecast this year and the nation is now setting a floor for prices, Goldman said in the report.
Australia’s economy will benefit from positive signs on exports to China, its biggest trading partner, and other developing nations, Treasurer Wayne Swan said today.
Goldman also reiterated “buy” ratings on Equinox Minerals Ltd., PanAust Ltd., Felix Resources Ltd., Whitehaven Coal Ltd., Lihir Gold Ltd., Sino Gold Mining Ltd. and Dominion Mining Ltd, the report said.
Source: Bloomberg
Friday, May 15, 2009
Kazakhstan President Urges Increased Mineral Production
President Nursultan Nazarbayev of Kazakhstan has urged the country to double its production and export of metallurgical products by 2015.
“Given the advanced reprocession and new process stages, the gross value added of the metallurgy must be increased by 107% as minimum”, he said at the XII congress of the “Nur Otan” Party.
The President noted that the industry that was ruined in the nineties is being restored. Many large projects have been realized within the last two years. He listed such projects as construction of the first stage of the electrolysis plant on production of aluminium, production of profile iron, high-capacity tantalite powders, and beneficiation of chrome ore.
“Today 26 projects to the amount of KZT 1.6 bln which should create 11,000 jobs are being implemented in the industry”, the President said.
Source: Kazinform
“Given the advanced reprocession and new process stages, the gross value added of the metallurgy must be increased by 107% as minimum”, he said at the XII congress of the “Nur Otan” Party.
The President noted that the industry that was ruined in the nineties is being restored. Many large projects have been realized within the last two years. He listed such projects as construction of the first stage of the electrolysis plant on production of aluminium, production of profile iron, high-capacity tantalite powders, and beneficiation of chrome ore.
“Today 26 projects to the amount of KZT 1.6 bln which should create 11,000 jobs are being implemented in the industry”, the President said.
Source: Kazinform
Monday, May 11, 2009
China To Restirct New Aluminium Projects
China will restrict new aluminium projects for three years and push for consolidation of base metals production, the State Council said on Monday, as it published a plan to revitalise the sector.
The plan, a draft of which was published in February, will seek to have 3-5 big firms by 2011, with the top 10 firms controlling 90 percent of copper production by 2011, 70 percent of aluminium, 60 percent of lead and 60 percent of zinc.
The State Council, China's cabinet, also said it would examine the case for further tax changes and more state stockpiling of base metals. It also confirmed targets to close outdated production capacity.
Source: Reuters
The plan, a draft of which was published in February, will seek to have 3-5 big firms by 2011, with the top 10 firms controlling 90 percent of copper production by 2011, 70 percent of aluminium, 60 percent of lead and 60 percent of zinc.
The State Council, China's cabinet, also said it would examine the case for further tax changes and more state stockpiling of base metals. It also confirmed targets to close outdated production capacity.
Source: Reuters
Yunnan Province Starts Second Round Of Metals Stockpiling
China's southwestern Yunnan Province has started a second round of nonferrous metals stockpiling in a bid to ensure steady growth of the local industry, according to a statement of the provincial government's industry and communications commission. The statement said the reserve plan covers copper, aluminium, lead, zinc, tin, germanium and industrial silicon.
The provincial government earlier in the first round purchased 552,000 tons of nonferrous metals from local nine enterprises in December of last year.
The nine nonferrous enterprises include Yunna Aluminium CO., Yunnan Coal Chemical Industry Group, Yunnan Tin Co. and Yunnan Luoping Zinc & Electricity Co.
Source: TMCNet
The provincial government earlier in the first round purchased 552,000 tons of nonferrous metals from local nine enterprises in December of last year.
The nine nonferrous enterprises include Yunna Aluminium CO., Yunnan Coal Chemical Industry Group, Yunnan Tin Co. and Yunnan Luoping Zinc & Electricity Co.
Source: TMCNet
Wednesday, April 22, 2009
China's Copper Imports Reach New Record
China's imports of refined copper rose to a record 296,843 tonnes in March, Customs figures showed on Wednesday.
China, the world's top consumer of copper, imported a record amount for the second consecutive month after importing 270,948 tonnes in the previous month.
The country, also the world's top consumer of aluminium, imported 85,965 tonnes of primary aluminium in March.
Imports of refined zinc and refined lead also reached records of 121,027 tonnes and 25,370 tonnes, respectively, in March.
Source: Reuters
China, the world's top consumer of copper, imported a record amount for the second consecutive month after importing 270,948 tonnes in the previous month.
The country, also the world's top consumer of aluminium, imported 85,965 tonnes of primary aluminium in March.
Imports of refined zinc and refined lead also reached records of 121,027 tonnes and 25,370 tonnes, respectively, in March.
Source: Reuters
Rio Tinto To Sell Stake In Chinese Aluminium Processor
Anglo-Australian miner Rio Tinto plans to sell its 27-percent stake in a China-based aluminum processor for US$3 million, its Chinese partner in the venture said.
Rio's aluminum subsidiary, Rio Tinto Alcan, wants to sell the stake in Nonfemet International (China-Canada-Japan) Aluminum Co amid a global divestment strategy, Shenzhen-listed Zhongjin Lingnan Nonfemet Co said yesterday.
Rio acquired the holding in 2007 when it bought Canada-based aluminum maker Alcan Inc.
Zhongjin Lingnan, a major Chinese zinc smelter, agreed to buy a 17-percent stake from Rio for US$1.89 million. After the transaction, Zhongjin's stake would increase to 72 percent from 55 percent in the venture, it said.
The companies haven't revealed the buyer of the other 10 percent.
Nonfemet International, established in 1986 as a venture between China National Nonferrous Metals Industry Corp, Alcan and Nippon Light Metal Co, had net assets worth 170.8 million yuan (US$25 million) at the end of last year.
In January, Rio Tinto Alcan sold a half stake in a Chinese aluminum smelter venture to Ningxia Hui Autonomous Region-based partner Qingtongxia Aluminum Group for US$125 million. Rio is eager to pay off a huge debt largely incurred from the Alcan purchase, and therefore it has agreed to a US$19.5 billion tie-up plan by Beijing-based Chinalco.
Last week, Rio's outgoing Chairman Paul Skinner expressed some regrets over the purchase of Alcan at the peak of a commodities boom and not moving fast to dispose of the non-core parts of the Alcan portfolio such as downstream packaging and engineering units.
Meanwhile, Zhongjin Lingnan said its net profit plunged 65 percent to 400 million yuan (US$58.6 million) last year as demand and zinc and lead prices fall.
Source: Shanghai Daily
Rio's aluminum subsidiary, Rio Tinto Alcan, wants to sell the stake in Nonfemet International (China-Canada-Japan) Aluminum Co amid a global divestment strategy, Shenzhen-listed Zhongjin Lingnan Nonfemet Co said yesterday.
Rio acquired the holding in 2007 when it bought Canada-based aluminum maker Alcan Inc.
Zhongjin Lingnan, a major Chinese zinc smelter, agreed to buy a 17-percent stake from Rio for US$1.89 million. After the transaction, Zhongjin's stake would increase to 72 percent from 55 percent in the venture, it said.
The companies haven't revealed the buyer of the other 10 percent.
Nonfemet International, established in 1986 as a venture between China National Nonferrous Metals Industry Corp, Alcan and Nippon Light Metal Co, had net assets worth 170.8 million yuan (US$25 million) at the end of last year.
In January, Rio Tinto Alcan sold a half stake in a Chinese aluminum smelter venture to Ningxia Hui Autonomous Region-based partner Qingtongxia Aluminum Group for US$125 million. Rio is eager to pay off a huge debt largely incurred from the Alcan purchase, and therefore it has agreed to a US$19.5 billion tie-up plan by Beijing-based Chinalco.
Last week, Rio's outgoing Chairman Paul Skinner expressed some regrets over the purchase of Alcan at the peak of a commodities boom and not moving fast to dispose of the non-core parts of the Alcan portfolio such as downstream packaging and engineering units.
Meanwhile, Zhongjin Lingnan said its net profit plunged 65 percent to 400 million yuan (US$58.6 million) last year as demand and zinc and lead prices fall.
Source: Shanghai Daily
Friday, March 20, 2009
Chinalco To Influence In Rio Investment Policy
Chinalco will gain extensive powers to influence the investment policy and strategic direction of Rio Tinto's core iron ore, copper and aluminium businesses, according to special side agreements relating to last month's deal in which the state-backed Chinese aluminium group agreed to buy a strategic stake in Rio.
Behind the headlines of the February deal in which Chinalco agreed to spend $19 billion (£13 billion) in return for 18 per cent of Rio and invest in its iron, copper and aluminium assets, there are complex subsidiary agreements.
These give Chinalco representation on boards and committees that will steer huge joint ventures that house a direct Chinese investment in Rio's mining operations.
Concern is mounting in Australia over the political price Rio may have paid for Chinalco's $19 billion investment. Australia's Foreign Investment Review Board initiated a 90-day review of the investment this week.
Related Links
* Rio Tinto review extended as protest mounts
* Concern grows over Rio deal with Chinalco
A leading shareholder in Rio, Australian Foundation Investment Company, has expressed disquiet over potential conflicts of interest in a state-backed Chinese metals company involved in the running of Rio's mines.
More fuel was added to the flames on Wednesday when the Chinese competition authority barred Coca-Cola's agreed takeover of a Chinese soft drinks company, Huiyuan Juice.
The extent of Chinalco's ambition to take part in the strategic direction of mining operations is apparent in a schedule to the February 12 contract, setting out a mechanism to create a strategic alliance vehicle (SAV) under which Chinalco will own 15 per cent of Hamersley Iron, a Rio Tinto subsidiary.
Chinalco will nominate two directors to the five-man board of Iron Ore SAV. The Chinese group will also have two out of six directors on the Iron Ore Strategic Alliance Committee, which approves investment programmes and budgets.
The Chinese company has equal representation on the copper and aluminium strategic alliance committees, although the Rio-nominated chairman has a casting vote. The SAVs will create sales marketing companies, controlled equally by Chinalco and Rio.
According to a Rio spokesman, Chinalco will have votes on the strategic alliance committees only according to its proportionate ownership interest, which is below a controlling interest.
Source: Times Online
Behind the headlines of the February deal in which Chinalco agreed to spend $19 billion (£13 billion) in return for 18 per cent of Rio and invest in its iron, copper and aluminium assets, there are complex subsidiary agreements.
These give Chinalco representation on boards and committees that will steer huge joint ventures that house a direct Chinese investment in Rio's mining operations.
Concern is mounting in Australia over the political price Rio may have paid for Chinalco's $19 billion investment. Australia's Foreign Investment Review Board initiated a 90-day review of the investment this week.
Related Links
* Rio Tinto review extended as protest mounts
* Concern grows over Rio deal with Chinalco
A leading shareholder in Rio, Australian Foundation Investment Company, has expressed disquiet over potential conflicts of interest in a state-backed Chinese metals company involved in the running of Rio's mines.
More fuel was added to the flames on Wednesday when the Chinese competition authority barred Coca-Cola's agreed takeover of a Chinese soft drinks company, Huiyuan Juice.
The extent of Chinalco's ambition to take part in the strategic direction of mining operations is apparent in a schedule to the February 12 contract, setting out a mechanism to create a strategic alliance vehicle (SAV) under which Chinalco will own 15 per cent of Hamersley Iron, a Rio Tinto subsidiary.
Chinalco will nominate two directors to the five-man board of Iron Ore SAV. The Chinese group will also have two out of six directors on the Iron Ore Strategic Alliance Committee, which approves investment programmes and budgets.
The Chinese company has equal representation on the copper and aluminium strategic alliance committees, although the Rio-nominated chairman has a casting vote. The SAVs will create sales marketing companies, controlled equally by Chinalco and Rio.
According to a Rio spokesman, Chinalco will have votes on the strategic alliance committees only according to its proportionate ownership interest, which is below a controlling interest.
Source: Times Online
Thursday, March 12, 2009
Chinese Non-Ferrous Metals Market "To Stay Cool" In 2009
Himfr.com , one of China's leading B2B search platforms , has analysed the 2009 Chinese non-ferrous metal market.
Because of the financial crisis, it is expected that in 2009 the Chinese non-ferrous metals market will continue to be cool.
In 2009, domestic and international economic pressures will increase.
Economically developed countries in Europe and the Americas will continue to
be in recession while China's economy is facing its most severe difficulties
and challenges to date. In this situation, worldwide increases in unemployment,
wealth and asset shrinkage, along with residential, automotive
and consumer durable goods production and sales declines will make it difficult for non-ferrous metal consumption to get better in a short period of time. It is expected that during 2009 copper, aluminium and zinc, the three major non-ferrous metals, will see consumption levels at or below 24 million tons, with continued
deceleration possible.
Of course, all countries have attached great importance to the current economic crisis, with every developed country having enacted policies to stimulate capital and consumer markets. These actions could help to produce gains in the non-ferrous market.
Overall, in 2009 China's Nonferrous Metals Market Price Index will decrease substantially, with an average drop among the three main non-ferrous metals of 30% from last year being possible. In particular, zinc could see a drop of more than 40%. On the other hand, after a sustained decline in the past months, the majority of the "bubble" in the market has been squeezed out. Even if a worse economic situation is yet to come, non-ferrous metal prices will continue to drop but the absolute value of further declines will be limited.
Source: himfr.com
Because of the financial crisis, it is expected that in 2009 the Chinese non-ferrous metals market will continue to be cool.
In 2009, domestic and international economic pressures will increase.
Economically developed countries in Europe and the Americas will continue to
be in recession while China's economy is facing its most severe difficulties
and challenges to date. In this situation, worldwide increases in unemployment,
wealth and asset shrinkage, along with residential, automotive
and consumer durable goods production and sales declines will make it difficult for non-ferrous metal consumption to get better in a short period of time. It is expected that during 2009 copper, aluminium and zinc, the three major non-ferrous metals, will see consumption levels at or below 24 million tons, with continued
deceleration possible.
Of course, all countries have attached great importance to the current economic crisis, with every developed country having enacted policies to stimulate capital and consumer markets. These actions could help to produce gains in the non-ferrous market.
Overall, in 2009 China's Nonferrous Metals Market Price Index will decrease substantially, with an average drop among the three main non-ferrous metals of 30% from last year being possible. In particular, zinc could see a drop of more than 40%. On the other hand, after a sustained decline in the past months, the majority of the "bubble" in the market has been squeezed out. Even if a worse economic situation is yet to come, non-ferrous metal prices will continue to drop but the absolute value of further declines will be limited.
Source: himfr.com
Monday, March 9, 2009
South Korea To Boost Aluminium, Copper Reserves
South Korea, Asia's third-largest base metal buyer, plans to boost its strategic aluminium and copper reserves by 46 percent and 23 percent respectively this year, in anticipation of higher prices and demand when the economy recovers.
Full story at Reuters
Full story at Reuters
Wednesday, March 4, 2009
Guanxi Government To Buy Metals Stocks
China's minerals-rich border region of Guangxi has completed a draft plan to buy metals as adhoc reserves to support local smelters that face weak demand, a local official said on Wednesday.
The official at the industry bureau of Baise city, the top aluminium producing area in Guangxi in southwestern China, said he expected the provincial government to finalise the volumes and prices for the buying plan in about two weeks' time.
The plan was disclosed by its party secretary Guo Shengkun in December last year after neighbouring Yunnan province said it would purchase up to 1 million tonnes of base metals and minerals and hold them for one year to help shore up prices.
Since then, the State Reserves Bureau (SRB), the commodity buyer for the central government, has bought 590,000 tonnes of primary aluminium ingots and 159,000 tonnes of refined zinc from local smelters as part of Beijing's plan to support the metal industry.
Chinese provinces are increasingly acting unilaterally to stave off unemployment, protect their local economy and prevent social and political unrest, as the global financial crisis hits China's export sector.
The government completed the draft after discussions lasting two months with county and city governments and local metals firms, including the Guangxi branch of Aluminum Corp of China Ltd (Chalco), Yinhai Aluminium Corp and zinc producer Nandan Nanfang Nonferrous Metals, according to a statement on the official website of the economic commission of the Guangxi government. (www.gxjmw.gov.cn).
"The draft is being reviewed by relevant authorities and companies," an official at the commission told Reuters.
The statement did not give details on the types of metals, prices, or the time of the purchases. Guangxi is an important producer of alumina, aluminium, tin, indium and other minor metals.
Though Guangxi's plan remains sketchy, industry sources say the metal purchases could support local prices and spur imports in the medium term.
The Guangxi government is expected to borrow from banks to buy the metals, the industry official said.
He said the Guangxi government might store the metals in sellers' yards or warehouses and sell the stocks once the market improved.
Source: Reuters
The official at the industry bureau of Baise city, the top aluminium producing area in Guangxi in southwestern China, said he expected the provincial government to finalise the volumes and prices for the buying plan in about two weeks' time.
The plan was disclosed by its party secretary Guo Shengkun in December last year after neighbouring Yunnan province said it would purchase up to 1 million tonnes of base metals and minerals and hold them for one year to help shore up prices.
Since then, the State Reserves Bureau (SRB), the commodity buyer for the central government, has bought 590,000 tonnes of primary aluminium ingots and 159,000 tonnes of refined zinc from local smelters as part of Beijing's plan to support the metal industry.
Chinese provinces are increasingly acting unilaterally to stave off unemployment, protect their local economy and prevent social and political unrest, as the global financial crisis hits China's export sector.
The government completed the draft after discussions lasting two months with county and city governments and local metals firms, including the Guangxi branch of Aluminum Corp of China Ltd (Chalco), Yinhai Aluminium Corp and zinc producer Nandan Nanfang Nonferrous Metals, according to a statement on the official website of the economic commission of the Guangxi government. (www.gxjmw.gov.cn).
"The draft is being reviewed by relevant authorities and companies," an official at the commission told Reuters.
The statement did not give details on the types of metals, prices, or the time of the purchases. Guangxi is an important producer of alumina, aluminium, tin, indium and other minor metals.
Though Guangxi's plan remains sketchy, industry sources say the metal purchases could support local prices and spur imports in the medium term.
The Guangxi government is expected to borrow from banks to buy the metals, the industry official said.
He said the Guangxi government might store the metals in sellers' yards or warehouses and sell the stocks once the market improved.
Source: Reuters
Monday, March 2, 2009
Report: Australia's Iron Ore Exports 'To Rise 13 Percent In 2009/10'
Australia, the world’s largest iron ore exporter, may ship 13 percent more of the steelmaking material in the 2010 fiscal year as mining companies bet that Chinese demand will recover, according to the Canberra-based Australian Bureau of Agricultural and Resource Economics (Abare).
Abare is looking for a rise in shipments to 337.5 million metric tons in the 12 months ending June 30, 2010, up from 298 million tons a year earlier, it said today, with a further rise of 11 percent the following year, it said.
BHP Billiton Ltd., Rio Tinto Group and Fortescue Metals Group Ltd. are betting on a revival of demand from Chinese mills to sustain production growth, however analysts are looking at a price fall of up to 30 percent, the first decline in seven years.
“It is expected global steel production will experience a relatively quick recovery from the current recession,” Abare said in a report today. “Chinese steel production is expected to increase from 2010 onwards.”
China accounts for almost 50 percent of world iron ore purchases in 2008.
Australia’s iron ore export earnings may drop 20 percent to A$27 billion ($17 billion) in fiscal 2010 and prices may fall for two years because of reduced global demand from steelmakers, Abare said. Coking coal export earnings may also decline 42 percent to A$21 billion.
The bureau expects Chinese steel production to grow by an annual average of 7 percent a year over the next five years. Steel output could rise 3 percent to 517 million metric tons in 2009, it said.
That prediction runs counter to a China Iron and Steel Association forecast on Feb. 13 that production in the country may fall this year. Steelmakers were pinning their hopes on a government stimulus package to revive demand as more than 60 percent of the mills were losing, the association said Feb. 23.
China, producer of one third of the world’s steel, is spending 4 trillion yuan ($585 billion) on the package to boost flagging economic growth.
Global copper consumption may contract for the first time in three years, forcing the average annual price “significantly” lower this year, the bureau said. Copper may average $3,330 a ton, it said, less than half of the previous year. Exports of copper ore and concentrate from Australia are forecast to increase 10 percent in fiscal 2010 to 1.9 million tons, it said.
Aluminium prices will remain “weak” this year and may average $1,400 a ton, the bureau said. Futures closed at $1,318 on March 2 in London. Output cuts by producers, including Rio and Alcoa Inc, may not be enough to stem increases in inventories, the bureau said. Australia’s aluminium export volumes are forecast to fall 3 percent in fiscal 2010 to 1.7 million tons, it said.
Nickel, used to make stainless steel, may average $10,500 a ton in 2009, with demand possibly rebounding in the second half to support a “modest” recovery in pricing, it said. The metal closed at $9,550 a ton on March 2. Nickel exports are forecast to increase 5 percent in fiscal 2010 to 125,000 tons, it said.
Zinc prices may average $1,285 a ton this year, 32 percent lower than last year’s average, as demand continues to be weak, the bureau said. Demand for zinc, which traded at $1,101 a ton on March 2, may begin to rebound next year, it said. Exports of zinc ore and concentrate from Australia are forecast to decline 18 percent in fiscal 2010 to 1.7 million tons, it said.
Source: Bloomberg
Abare is looking for a rise in shipments to 337.5 million metric tons in the 12 months ending June 30, 2010, up from 298 million tons a year earlier, it said today, with a further rise of 11 percent the following year, it said.
BHP Billiton Ltd., Rio Tinto Group and Fortescue Metals Group Ltd. are betting on a revival of demand from Chinese mills to sustain production growth, however analysts are looking at a price fall of up to 30 percent, the first decline in seven years.
“It is expected global steel production will experience a relatively quick recovery from the current recession,” Abare said in a report today. “Chinese steel production is expected to increase from 2010 onwards.”
China accounts for almost 50 percent of world iron ore purchases in 2008.
Australia’s iron ore export earnings may drop 20 percent to A$27 billion ($17 billion) in fiscal 2010 and prices may fall for two years because of reduced global demand from steelmakers, Abare said. Coking coal export earnings may also decline 42 percent to A$21 billion.
The bureau expects Chinese steel production to grow by an annual average of 7 percent a year over the next five years. Steel output could rise 3 percent to 517 million metric tons in 2009, it said.
That prediction runs counter to a China Iron and Steel Association forecast on Feb. 13 that production in the country may fall this year. Steelmakers were pinning their hopes on a government stimulus package to revive demand as more than 60 percent of the mills were losing, the association said Feb. 23.
China, producer of one third of the world’s steel, is spending 4 trillion yuan ($585 billion) on the package to boost flagging economic growth.
Global copper consumption may contract for the first time in three years, forcing the average annual price “significantly” lower this year, the bureau said. Copper may average $3,330 a ton, it said, less than half of the previous year. Exports of copper ore and concentrate from Australia are forecast to increase 10 percent in fiscal 2010 to 1.9 million tons, it said.
Aluminium prices will remain “weak” this year and may average $1,400 a ton, the bureau said. Futures closed at $1,318 on March 2 in London. Output cuts by producers, including Rio and Alcoa Inc, may not be enough to stem increases in inventories, the bureau said. Australia’s aluminium export volumes are forecast to fall 3 percent in fiscal 2010 to 1.7 million tons, it said.
Nickel, used to make stainless steel, may average $10,500 a ton in 2009, with demand possibly rebounding in the second half to support a “modest” recovery in pricing, it said. The metal closed at $9,550 a ton on March 2. Nickel exports are forecast to increase 5 percent in fiscal 2010 to 125,000 tons, it said.
Zinc prices may average $1,285 a ton this year, 32 percent lower than last year’s average, as demand continues to be weak, the bureau said. Demand for zinc, which traded at $1,101 a ton on March 2, may begin to rebound next year, it said. Exports of zinc ore and concentrate from Australia are forecast to decline 18 percent in fiscal 2010 to 1.7 million tons, it said.
Source: Bloomberg
Thursday, February 12, 2009
Rio Tinto-Chinalco Deal
WEIPA, QUEENSLAND: Bauxite. 2008 output: 20,006,000 tonnes Sale of 30% stake worth $1.2 billion Queensland. Sale of 50% stake worth $500 million.
YARWUN, QUEENSLAND: Alumina refinery, output in 2008 1,293,000 tonnes. Sale of 50% stake at a price of $500 million. . Rio's revised stake will be 50%.
BOYNE ISLAND, QUEENSLAND: Aluminium smelter, output in 2008 552,000 tonnes. Sale of 29.40% stake to raise Chinalco's stake to 49% at a cost of $450 million with Gladstone Power deal. Rio's revised stake will be 30%.
GLADSTONE POWER, QUEENSLAND: Capacity 1680 megawatts. Sale of 20.6% stake to raise Chinalco's stake to 49% at a cost of $450 million with Boyne Island deal. Rio's revised stake will be 21.50%
ESCONDIDA COPPER MINE, CHILE: Output in 2008 992,400 tonnes of copper in concentrate. Sale of 15% stake to raise Chinalco's stake to 49.75%. Rio's revised stake will be 15%. Value of deal $3.388 billion
GRASBERG, PAPUA PROVINCE, INDONESIA: Copper and gold mine. Output in 2008: 467,500 tonnes of copper in concentrate and 1.1 million ounces of gold. Sale of 12% stake to raise Chinalco's stake to 30%. Rio's revised stake will be 28%. Value of deal $400 million.
LA GRANJA, PERU: Copper and zinc project. Resource: 2.8 billion tonnes of Inferred Resources; grading 0.51 percent copper and 0.1 percent zinc. Sale of 30% stake worth $50 million.
KENNECOTT COPPER, UTAH: 238,000 tonnes of copper in concentrate and 200,600
tonnes of refined copper. Sale of 25% stake worth $700 million. Rio’s revised stake will be 75%.
HAMERSLEY IRON, WEST AUSTRALIA: Sale of 15% stake worth $5.15 billion. 2008 OUTPUT: 95.55 million tonnes. Rio’s revised stake will be 85%/
DEVELOPMENT FUND 1: sale of 50% stake worth $500 million
TOTAL $12.338 billion.
YARWUN, QUEENSLAND: Alumina refinery, output in 2008 1,293,000 tonnes. Sale of 50% stake at a price of $500 million. . Rio's revised stake will be 50%.
BOYNE ISLAND, QUEENSLAND: Aluminium smelter, output in 2008 552,000 tonnes. Sale of 29.40% stake to raise Chinalco's stake to 49% at a cost of $450 million with Gladstone Power deal. Rio's revised stake will be 30%.
GLADSTONE POWER, QUEENSLAND: Capacity 1680 megawatts. Sale of 20.6% stake to raise Chinalco's stake to 49% at a cost of $450 million with Boyne Island deal. Rio's revised stake will be 21.50%
ESCONDIDA COPPER MINE, CHILE: Output in 2008 992,400 tonnes of copper in concentrate. Sale of 15% stake to raise Chinalco's stake to 49.75%. Rio's revised stake will be 15%. Value of deal $3.388 billion
GRASBERG, PAPUA PROVINCE, INDONESIA: Copper and gold mine. Output in 2008: 467,500 tonnes of copper in concentrate and 1.1 million ounces of gold. Sale of 12% stake to raise Chinalco's stake to 30%. Rio's revised stake will be 28%. Value of deal $400 million.
LA GRANJA, PERU: Copper and zinc project. Resource: 2.8 billion tonnes of Inferred Resources; grading 0.51 percent copper and 0.1 percent zinc. Sale of 30% stake worth $50 million.
KENNECOTT COPPER, UTAH: 238,000 tonnes of copper in concentrate and 200,600
tonnes of refined copper. Sale of 25% stake worth $700 million. Rio’s revised stake will be 75%.
HAMERSLEY IRON, WEST AUSTRALIA: Sale of 15% stake worth $5.15 billion. 2008 OUTPUT: 95.55 million tonnes. Rio’s revised stake will be 85%/
DEVELOPMENT FUND 1: sale of 50% stake worth $500 million
TOTAL $12.338 billion.
Sunday, January 25, 2009
Production Up But Profits Down At Sterlite
Sterlite Industries India Ltd. has posted a consolidated net profit after tax of Rs5.14bn for the quarter ended December 31, 2008 as against Rs8.55bn in the same quarter a year earlier. Consolidated total income is also down at Rs51.21bn for the fiscal third quarter versus Rs55.34bn in the quarter ended December 31, 2007.
Aluminium production for Q3 and the nine month period was 92,000 tons and 272,000 tons respectively, compared with 89,000 tons and 266,000 tons in the corresponding prior periods. The company recently started a temporary ramp-down of production in BALCO plant I, where operating costs are high and surplus power from this unit will be sold to optimize returns.
Revenues in Q3 and the nine month period were Rs8.36bn and Rs31.21bn, respectively, compared with Rs9.44bn and Rs30.45bn in the corresponding prior periods. The decrease in revenue was primarily on account of lower LME prices of aluminium by 25% in Q3, despite the depreciation of the Indian rupee against the US dollar by 21%.
As a result of the above, EBIDTA for Q3 and the nine month period was Rs1.62bn and Rs8.93bn, respectively compared with Rs2.65bn and Rs9.89bn in the corresponding prior periods.
The cost control measures, coupled with the drop in input prices have started yielding positive impact on the unit cost of production (CoP) at BALCO, which was US$1,642 per tons in Q3, down from US$1,969 per tonne in the immediately preceding quarter. Unit CoP in December 2008 was US$1,467 per tonne. Going forward, the company expects the trend of reduction in costs to continue and expect to be able to achieve a further reduction in CoP in the last quarter of FY 2009.
The 325,000 tpa smelter project at BALCO is progressing well and as per schedule for commissioning in September 2011, as announced earlier.
Work on the first phase of the 500,000 tpa aluminium smelter and associated captive power plant at Jharsuguda, Orissa is progressing well. To date, 228 pots have been commissioned, supported by three units of captive power plant with fourth unit being commissioned recently. The company expects the first phase of 250,000 tons to be fully commissioned by the end of FY 2009, approximately nine months ahead of schedule.
The first stream of the alumina refinery at Lanjigarh is fully operational and the production has been at near rated capacity at 165,000 tons in Q3.
Copper cathode production for the Q3 and the nine months period was 76,000 tons and 225,000 tons respectively, compared with 77,000 tons and 249,000 tons in the corresponding prior periods. The production was almost flat in Q3, primarily on account of an unplanned shutdown due to damage in the cooling tower in November 2008. The plant is being restored to normal operations.
Mined metal production at the company's Australian mine was in line with normal production level of 7,000 tons in Q3.
Revenues for Q3 and the nine month period were lower at Rs25.78bn and Rs92.69bn, respectively, compared with Rs26.31bn and Rs92.82bn in the corresponding prior periods. The decrease in revenues was primarily on account of lower copper LME prices which were down by 46% in Q3.
EBITDA for Q3 and the nine month period was Rs980mn and Rs9.83bn, respectively, compared with Rs2.89bn and Rs8.7bn in the corresponding prior periods. The decrease in profitability was mainly on account of lower TC/RCs and the sharp fall in by-product realisations. Going forward we expect Tc/Rcs to improve.
The company's zinc business achieved its highest ever quarterly production in Q3 for both mined and saleable metal. During Q3, HZL produced 191,684 tons of mined metal and 166,539 tons of saleable metal, an increase of 24% and 40% respectively compared with the corresponding prior quarter. For the nine months period, mined and saleable metal production was 537,592 tons and 445,812 tons respectively, an increase of 14% and 34% over the corresponding prior period.
The increase in mined metal production was primarily on account of the ramp-up of the stream III concentrator at Rampura Agucha mines in the current year. The increase in the refined metal production was primarily on account of the commissioning of the new Hydro smelter at Chanderiya in December 2007 and commissioning of the 88,000 tpa de-bottlenecking project in the current year.
During Q3, saleable silver metal production was at 24,722 kilograms, an increase of 23% compared with the corresponding prior quarter. For the nine months period, saleable silver metal production was 69,879 kilograms, an increase of 24% compared with the corresponding prior period.
Revenues for Q3 and the nine month period were lower at Rs10.31bn and Rs44.18bn, compared with Rs16.58bn and Rs56.12bn in the corresponding prior periods. Despite higher volumes and the depreciation of the Indian rupee by 21% the revenues were lower, primarily on account of lower LME prices of zinc and lead by 55% and 62%, respectively in Q3.
EBITDA for Q3 and the nine months period was Rs3.05bn and Rs22.93bn, compared with Rs10.71bn and Rs41.09bn in the corresponding prior periods. The fall in profitability is primarily on account of lower LME prices of zinc and lead and the sharp drop in by-product realisations, primarily sulphuric acid, which outpaced the benefits of increased volumes.
The zinc CoP during Q3 was US$780 per tonne, higher on account of higher input costs of coal, petroleum products, and met coke and lower realization from the sale of by-products. However, towards the end of Q3, the downward trend in the unit cost of key inputs became visible, and is expected to lower the cost of production going forward.
The construction activities at the 210,000 tpa zinc smelter and 100,000 lead smelter at Rajpura Dariba with its associated 160 MW captive power plant is progressing well and as per schedule for completion by mid - 2010. Progress of work at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar is on schedule. Post completion of these projects, HZL will be the world’s largest integrated zinc – lead producer with a total capacity of 1,064,000 tons.
Work on 2,400 MW (4x600 MW) coal based thermal power plant at Jharsuguda is progressing well and overall the project is on schedule for progressive commissioning from late 2009 as expected.
For the company's 1,980 MW power plant at Talwandi Sabo, the steps for financial closure and discussions for finalization of EPC have commenced.
Consolidated cash and cash equivalents on 31 December 2008 was Rs190.34bn. This includes Rs143bn in debt mutual funds and Rs46.57bn in fixed deposits with banks. The Company has strong internal control mechanism that includes constant review and monitoring of all its investments. The investments portfolio is independently reviewed by Credit Rating Information Services of India Limited (CRISIL) on an ongoing basis.
Aluminium production for Q3 and the nine month period was 92,000 tons and 272,000 tons respectively, compared with 89,000 tons and 266,000 tons in the corresponding prior periods. The company recently started a temporary ramp-down of production in BALCO plant I, where operating costs are high and surplus power from this unit will be sold to optimize returns.
Revenues in Q3 and the nine month period were Rs8.36bn and Rs31.21bn, respectively, compared with Rs9.44bn and Rs30.45bn in the corresponding prior periods. The decrease in revenue was primarily on account of lower LME prices of aluminium by 25% in Q3, despite the depreciation of the Indian rupee against the US dollar by 21%.
As a result of the above, EBIDTA for Q3 and the nine month period was Rs1.62bn and Rs8.93bn, respectively compared with Rs2.65bn and Rs9.89bn in the corresponding prior periods.
The cost control measures, coupled with the drop in input prices have started yielding positive impact on the unit cost of production (CoP) at BALCO, which was US$1,642 per tons in Q3, down from US$1,969 per tonne in the immediately preceding quarter. Unit CoP in December 2008 was US$1,467 per tonne. Going forward, the company expects the trend of reduction in costs to continue and expect to be able to achieve a further reduction in CoP in the last quarter of FY 2009.
The 325,000 tpa smelter project at BALCO is progressing well and as per schedule for commissioning in September 2011, as announced earlier.
Work on the first phase of the 500,000 tpa aluminium smelter and associated captive power plant at Jharsuguda, Orissa is progressing well. To date, 228 pots have been commissioned, supported by three units of captive power plant with fourth unit being commissioned recently. The company expects the first phase of 250,000 tons to be fully commissioned by the end of FY 2009, approximately nine months ahead of schedule.
The first stream of the alumina refinery at Lanjigarh is fully operational and the production has been at near rated capacity at 165,000 tons in Q3.
Copper cathode production for the Q3 and the nine months period was 76,000 tons and 225,000 tons respectively, compared with 77,000 tons and 249,000 tons in the corresponding prior periods. The production was almost flat in Q3, primarily on account of an unplanned shutdown due to damage in the cooling tower in November 2008. The plant is being restored to normal operations.
Mined metal production at the company's Australian mine was in line with normal production level of 7,000 tons in Q3.
Revenues for Q3 and the nine month period were lower at Rs25.78bn and Rs92.69bn, respectively, compared with Rs26.31bn and Rs92.82bn in the corresponding prior periods. The decrease in revenues was primarily on account of lower copper LME prices which were down by 46% in Q3.
EBITDA for Q3 and the nine month period was Rs980mn and Rs9.83bn, respectively, compared with Rs2.89bn and Rs8.7bn in the corresponding prior periods. The decrease in profitability was mainly on account of lower TC/RCs and the sharp fall in by-product realisations. Going forward we expect Tc/Rcs to improve.
The company's zinc business achieved its highest ever quarterly production in Q3 for both mined and saleable metal. During Q3, HZL produced 191,684 tons of mined metal and 166,539 tons of saleable metal, an increase of 24% and 40% respectively compared with the corresponding prior quarter. For the nine months period, mined and saleable metal production was 537,592 tons and 445,812 tons respectively, an increase of 14% and 34% over the corresponding prior period.
The increase in mined metal production was primarily on account of the ramp-up of the stream III concentrator at Rampura Agucha mines in the current year. The increase in the refined metal production was primarily on account of the commissioning of the new Hydro smelter at Chanderiya in December 2007 and commissioning of the 88,000 tpa de-bottlenecking project in the current year.
During Q3, saleable silver metal production was at 24,722 kilograms, an increase of 23% compared with the corresponding prior quarter. For the nine months period, saleable silver metal production was 69,879 kilograms, an increase of 24% compared with the corresponding prior period.
Revenues for Q3 and the nine month period were lower at Rs10.31bn and Rs44.18bn, compared with Rs16.58bn and Rs56.12bn in the corresponding prior periods. Despite higher volumes and the depreciation of the Indian rupee by 21% the revenues were lower, primarily on account of lower LME prices of zinc and lead by 55% and 62%, respectively in Q3.
EBITDA for Q3 and the nine months period was Rs3.05bn and Rs22.93bn, compared with Rs10.71bn and Rs41.09bn in the corresponding prior periods. The fall in profitability is primarily on account of lower LME prices of zinc and lead and the sharp drop in by-product realisations, primarily sulphuric acid, which outpaced the benefits of increased volumes.
The zinc CoP during Q3 was US$780 per tonne, higher on account of higher input costs of coal, petroleum products, and met coke and lower realization from the sale of by-products. However, towards the end of Q3, the downward trend in the unit cost of key inputs became visible, and is expected to lower the cost of production going forward.
The construction activities at the 210,000 tpa zinc smelter and 100,000 lead smelter at Rajpura Dariba with its associated 160 MW captive power plant is progressing well and as per schedule for completion by mid - 2010. Progress of work at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar is on schedule. Post completion of these projects, HZL will be the world’s largest integrated zinc – lead producer with a total capacity of 1,064,000 tons.
Work on 2,400 MW (4x600 MW) coal based thermal power plant at Jharsuguda is progressing well and overall the project is on schedule for progressive commissioning from late 2009 as expected.
For the company's 1,980 MW power plant at Talwandi Sabo, the steps for financial closure and discussions for finalization of EPC have commenced.
Consolidated cash and cash equivalents on 31 December 2008 was Rs190.34bn. This includes Rs143bn in debt mutual funds and Rs46.57bn in fixed deposits with banks. The Company has strong internal control mechanism that includes constant review and monitoring of all its investments. The investments portfolio is independently reviewed by Credit Rating Information Services of India Limited (CRISIL) on an ongoing basis.
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