Orissa To Release Mining Policy Plan

5% Royalty Likely To Be Imposed

The government in the Indian state of Orissa government is to release policy guidelines regarding mining in the state.

The policy, which is aimed at developing and regulating the local mining industry, will focus more on the non-ferrous sector and comes at a time when issues such as illegal mining and land acquisition have come to the fore.

Industries to be affected by the guidelines are expected to below volume, high value non-ferrous minerals like gold, nickel, platinum and beach sand, however, the ferrous sector is likely to be affected by guidelines on the profitable use of low grade ores by using state-of-the-art technology in the benefication, sintering and pelletising process.

The state government has decided in principle that a royalty of 5% will be used for the development of people living mining areas. A committee has been formed to formulate the policy for the implementation of this decision.

Orissa has 17% of India’s total mineral reserves with 174 million tonnes of nickel ore, 82 million tonnes of beach sand minerals, 1,802 million tonne of bauxite, 180 million tonnes of chromite, 5,305 million tonne of iron ore and 65,353 million tonne of coal. There are also deposits of cobalt, copper ore, dolomite, lead & zinc ore, limestone, tin ore.

Ferro Alloys Corporation Looking For Strategic Partners

Steelmakers Circle Ferrochrome Manufacturer

India’s Ferro Alloys Corporation is looking for strategic partners as the company looks to move up to the next stage.

Joint managing director Ashish K Saraf admitted to Indian TV station NDTV that his company is looking for a tie-up and that preliminary approaches have been made to steelmakers Baosteel, Posco, Vedanta, JSW, Tata Steel and Amtek Auto.

"We are actively looking to bring in strategic investors into Ferro Alloys. It could be Tata Steel, Bao Steel etc, anyone who has capacities and requirement for ferro-chrome," Mr Saraf told NDTV.
The company has also given a mandate to E&Y to look for international partners and sources suggest that part of the mandate is a sale of up to 75% of the equity in Ferro Alloys Corporation and 47% in associated company FACOR Alloys. These are the stakes held by the company’s promoters with the balance held by financial institutions, corporate bodies and the general public.

Ferro Alloys Corporation has significant chrome ore mining assets including its complex in Orissa, and this is what makes the company so attractive to steelmakers
Sources suggest that any bid for Ferro Alloys is likely to be in the region of Rs40-45 a shares – a 50% premium over the current market prices – which would value the promoter holding at around Rs600 crore (US$135 million).

Zimbabwe Suspends Chrome Ore Export Ban

Zimbabwe has suspended a ban on the export of raw chrome ore. The ban will be lifted for an 18-month period during which small-scale miners will be able to export the mineral.

The ban was brought in last year when the Zimbabwean government permitted only trade in refined chrome products, a move which put many small-scale exporters out of business as they had no capabilities to refine the ore, however this result has led Mines and Mining Development Minister Obert Mpofu to announce a lifting of the ban.

“We had imposed the ban to ensure that producers exported value-added products and not just raw chrome because, that way, the country was losing millions in potential revenue.But we have shelved this for 18 months” Mr Mpofu explained.

The minister also said that the government has relaxed legislation governing the gold sector to facilitate the entry of local enterprises into the sector.

“We have . . . allowed small-scale gold-miners to access licences to buy and sell their own gold. Because of our previous regulations that criminalised dealing in and possession of gold, these people were smuggling it to South Africa or selling it to illegal dealers here.” Mr Mpofu said. “Government was losing a lot money that way, but now the dealers can even buy from the gold panners and sell directly to the market.”

Chromex Turns In Profit

AIM-listed, Cromex Mining turned in a profit of £195,000 for the year ended 30 September 2009, compared with a £1.4m loss in 2008.
The company has two key mining assets on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite.
Chromex successfully commissioned its processing facility at the Stellite open cast chrome mine in South Africa during the course of the year, thus enabling it to take advantage as the chrome market began to recover towards the end of 2009. The commissioning of the first phase was completed in August 2009 and used stockpiles mined in the early part of the financial year. This allowed mining operations at Stellite to be suspended during a period of adverse market conditions. Full mining restarted in January 2010.
Stellite will initially produce approximately 20,000 run of mine (ROM) tonnes per month, increasing to 40,000 ROM tonnes per month once a dense media separation circuit (DMS) is installed at the plant. This is expected to be completed during Q3 of 2010.

Both Stellite, and the Mecklenburg mine on the east limb of the Bushveld, are owned and operated by South African registered Chromex Mining Co, which is 74% owned by Chromex and 26% owned by their Black Economic Empowerment partner Umnotho WeSizwe.


Development at Mecklenburg project has been deferred pending the conclusion of a court case with Samancor Chrome Limited who applied to the South African High Court in 2008, to set aside the decision to award Chromex the Mining Rights.

The company said that it continues to consolidate its position as a long term chrome producer in southern Africa. Chromex has agreed to acquire 49% of Falvect Mining Ltd, a Zimbabwe-based company with chrome assets.

Gulf Mining Opens Oman's First Chrome Benefication Plant

Omani mining company, Gulf Mining Materials Company, opened the country’s first chrome ore beneficiation plant this week at Wadi Mahram in the north east of Oman. When commissioned, the plant will have an intake capacity of 15,000 tonnes per month.

Gulf Mining’s own chromite mine is situated close to the plant although the company says it will also process ore from other mines. It is envisaged that the finished chrome concentrate will be exported principally to companies in China and India.

Gulf Mining began its chromite ore mining operations in 2006, although up to now it has exported its chromite in raw form. The company is also active in laterite quarrying with a laterite quarry at Barka which mines around 30,000 tonnes per month. This is exported to the nearby United Arab Emirates. Marble quarrying is expected to commence shortly.

The opening of the chrome ore beneficiation plant is part of the company’s plan to diversify into value added processes. The company also hopes to begin mining for copper ore, iron ore, kaolin and limestone, among other minerals.


Des Nogalski

Gindalbie, Anshan Sign Co-operation Deal

Australian iron ore miner, Gindalbie Metals and its Chinese shareholder Anshan Iron and Steel Group (Ansteel), have taken their co-operation a stage further with a deal to develop metallurgical coal, manganese, chromite and nickel projects, and pellet plants and steel mills in Australia.

Gindalbie and Ansteel currently co-operate on an iron ore project at Karara in Western Australia.

"The assets to be targeted will primarily be in the carbon steel materials sector ... as well as downstream processing opportunities such as pellet plants and steel mills," Gindalbie said in a statement on Wednesday.

The statement added: "Ansteel will contribute its extensive experience as a global iron ore and steel company and access to capital to potential joint development opportunities which can provide it with long-term sources of supply of raw materials from Australia. Gindalbie will contribute its geological and resource project expertise, contacts and knowledge base within the Australian resource sector to actively identify, explore and develop quality resource projects."
Gindalbie managing director, Garret Dixon, said the two partners had already identified several opportunities and will be stepping up their search in the months ahead.

Last year Ansteel and the West Australian government agreed to undertake a feasibility study to construct the state’s first steel mill at the Oakajee industrial estate near Geraldton, which is centred on a new deep water export port. Land clearing for the project is well advanced and exports are slated to commence in 2011.

Ansteel is Gindalbie's largest shareholder with a 36.2 per cent stake.

Chromex Reopens Stellite Chrome Mine

South African chrome miner Chromex Mining has recommenced mining at its Stellite opencast chrome mine on the Western Limb of the Bushveld Complex in South Africa. The decision follows improved market conditions which have led to the drawdown of its stockpiles over the past six months.

The Stellite operation will initially produce around 20,000 tonnes per month increasing to 40,000 tonnes per month following improvements to its beneficiation plant which are expected to be completed in Q3 2010.

Chromex currently produces 42% and 44% metallurgical grade chrome concentrate and the Company hopes to be in a position to market a sized lumpy chrome product in addition to chemical and metallurgical grade concentrates.

Chromex CEO Russell Lamming said, "Despite the challenging chrome market conditions over the past year we have continued to invest in our operations, channelling our focus into building a cost efficient producing chrome mine at Stellite. In this vein, with market conditions beginning to improve, and a solid orebody containing circa 31.9 million tonnes of chromite to utilise, we feel that the time is right to recommence our mining operations and deliver an uplift in value for shareholders in 2010."

SA Ferrochrome Producers Call For Chrome Ore Export Restrictions

SA’s ferrochrome producers are calling for government support against their Chinese counterparts in what has emerged as another trade skirmish between the two countries.

The battle to retain leadership of the global ferrochrome market and remain a key supplier to the Chinese stainless steel industry amplifies the struggle of clothing and textile makers against a cheap Chinese goods onslaught.

Ferrochrome producers have called for restrictions on chromite ore exports to China, which is 99%-dependent on the imports — largely from SA — for its ferrochrome production.

But the proposals are not likely to win support from platinum producers, who produce chromite ore as a by-product for export.

The ferrochrome lobby hopes that by increasing the cost and limiting the quantity of chromite ore exported, the price of Chinese ferrochrome would have to rise, making them more competitive.

The proposed quota and export duty on chromite ore would be a tit-for-tat response to China’s imposition of a stiff 40% export duty on metallurgical coke, which is the sole ingredient that South African ferrochrome producers import — largely from China.

The Chinese government is subsidising various raw material imports (including chromium) to foster beneficiation.

Ferrochrome manufacturers have met the government, and yesterday with MPs, to lobby for urgent protectionist measures.

They say that Chinese competition, together with escalating electricity tariffs and the stronger rand, have threatened their international competitiveness.

Most expect to suffer a “significant loss” this year as a result of the plunge in demand due to the global recession.

The seven producers in the lobby group — including Xstrata Alloys, Samancor Chrome and International Ferrometals — represent about 90% of SA’s ferrochrome production and about 44% of global production.

SA has about 65% of the world’s chrome reserves.

Xstrata Alloys MD Deon Dreyer told Parliament’s mineral resources committee the producers had been undermined by the recent surge in Chinese ferrochrome production.

In a document presented to the Department of Mineral Resources and MPs, the manufacturers asked for legislation to curtail unbeneficiated chromite ore exports from SA to international ferrochrome-producing countries. These exports should be restricted to integrated ferrochrome producers only and limited to 30% of the ore-equivalent ferrochrome production capacity.

This would mean that for chromite ore exports to increase there would have to be an increase in investment in beneficiation capacity. In addition, an export duty of 100 a ton of chromite ore should be payable, along the lines of a measure adopted in India.

“The introduction of Chinese ferrochrome production and the consequent surge in traded ore since 2004 has seen integrated (mining and smelting) production declining from 86% in 2004 to 75% in 2008. SA’s market share over the same period has declined from 51% to 44% against China’s growth in market share from 9% to 18%,” the document said.

As a result of the displaced market share to China, South African capacity idled at 28% last year, representing a 2,5bn loss of sales to China.

Source: Business Day

Metmar Buys 40% Stake In Zimbabwe Alloys

JSE-listed commodities trading company Metmar has completed an agreement to acquire a 40% stake in Zimbabwe Alloys and its subsidiary Chrome Corporation (Chromecorp), in consortium with several partners.

Metmar owns a 20% stake in the consortium, which it said would not only make capital contributions, but also had the required knowledge to restart the mining and alloy production.

The purchase consideration amounted to $56,25-million and $4,1-million for Zimbabwe Alloys and Chromecorp respectively, and was payable in several tranches.

Most of the proceeds would be applied to restore the operation’s mining, processing and production capacity. The Metmar consortium would also apply its significant intellectual capital to unlock the value of this investment.

Accordingly, it would invest towards the design, construction and commissioning of new furnaces, the training of staff as well as the transfer of knowledge and know how regarding the direct current technology and/or the refurbishment of existing furnaces and mining and processing activities.

The purchased assets included, among others, a furnace complex in Gweru, washing and metal recovery plants and the mineral claims to the extensive high quality chrome deposits. The refinery consists of a smelter, metal recovery plant and crushing, screening and loading facilities. Over the years, the refinery produced about three-million tons of ferroalloy products.

“The opportunity to invest in Zimbabwe Alloys and Chromecorp attracted significant interest from a number of commodity players, both in South Africa and further afield, based on its long-term potential,” said Metmar CEO David Ellwood.

The acquisition met Metmar’s strategy of concluding equity stakes in production and mining assets to secure marketing rights as well as the potential to unlock long-term value for stakeholders. It fitted the group’s policy to diversify into a broader range of commodity sources, although the acquisition is still subject to the conclusion of a technical due diligence.

“Metmar is already successfully exposed to the Zimbabwean environment through metallurgical coke screening activities. With mounting evidence of the potential for economic renewal in the region, we started evaluating opportunities to strengthen our strategic presence there more than six month ago, underpinned by our cautious and conservative investment approach,” commented Ellwood.

“We are confident that the acquisition presents Metmar with access to high quality chrome ore, high-carbon ferrochrome and plasma chrome and our new Zimbabwean partnership with Benscore Investments, which owns the remaining 60% in Zimbabwe Alloys, holds significant potential.”

Source: Mining Weekly

Orissa Grants 15 Chromite Leases

BS has reported that though Orissa has 183 million tonnes of chrome ore, constituting 98% of India's total chrome deposits, only 3.27% of this - about 6 million tonnes - has been fully explored till date.

To expedite the exploration and exploitation of chrome reserves in the state, the government has granted mining leases to 15 companies including Ferro Alloys Corporation and Balasore Alloys. Of the total chrome reserves in Orissa, Sukinda area in Jajpur district has the lion’s share of 173 million tonnes, including low grade chrome.

The places in Sukinda where the chrome deposits are found are
1. Kamarda - 2 million tonnes
2. Saruabili - 9 million tonnes
3. Sukrangi - 7.5 million tonnes
4. Kaliapani - 25 million tonnes
5. Bhimatanger - 98 million tonnes
6. Kalarangi - 0.5 million tonne
7. Chingudipal and Tailangi - 13 million tonnes

Mr Raghunath Mohanty, steel and mines minister, said that out of the total deposits found in the Sukinda area, 18 million tonnes are of an inferior quality. He added that Kamakshyanagar in Dhenkanal district has about 4.42 million tonnes in reserves of chromite in locations like Sandhasar, Tulasiposhi, Haladigunda and Kathapal. The estimated reserves at Kathapal are 2 million tonne.

Mr Mohanty said that the total chromite reserve of the state is estimated at 183 million tonnes, out of which 177.42 million tonnes occur in Sukinda and Kamakshyanagar area.

Stating that the state government is taking effective steps for checking illegal mining, transportation and trading of chrome ore, he said that the government has formulated Orissa Minerals Rules 2007. Action is being taken against the persons, vehicles involved in this trade. Besides, state level and district level squads have been constituted to prevent smuggling and illegal trade of minerals.

Source: Business Standard/Steel Guru

Sukinda Area Has 173 Million Tonne Chromite Deposit

Though Orissa has 183 million tonnes of chrome ore, constituting 98 per cent of the total chrome deposits in the country, only 3.27 per cent of this, which comes to about 6 million tonne, has been fully explored till date.

To expedite the exploration and exploitation of chrome reserves in the state, the government has granted mining leases to 15 companies including Ferro Alloys Corporation (Facor) and Balasore Alloys.

Of the total chrome reserves in Orissa, Sukinda area in Jajpur district has the lion’s share of 173 million tonne (mt). This includes low grade chrome.

The places in Sukinda where the chrome deposits are found are Kamarda (2 mt), Saruabili (9 mt), Sukrangi (7.5 mt), Kaliapani (25 mt), Bhimatanger (98 mt), Kalarangi (0.5 mt) and Chingudipal and Tailangi (13 mt).

Out of the total deposits found in Sukinda area, 18 million tonne are of inferior quality, says the state steel and mines minister, Raghunath Mohanty said.

The Kamakshyanagar in Dhenkanal district, which adjoins Sukinda valley, has about 4.42 million tonne reserve of chromite in locations like Sandhasar, Tulasiposhi, Haladigunda and Kathapal. The estimated reserves at Kathapal are 2 million tonne.

Mohanty said, the total chromite reserve of the state is estimated at 183 million tonne, out of which 177.42 million tonne occur in Sukinda and Kamakshyanagar area.

Stating that the state government is taking effective steps for checking illegal mining, transportation and trading of chrome ore, the minister said, the government has formulated Orissa Minerals (prevention of theft, smuggling, illegal mining and regulation of possession, storage, trading, and transportation) Rules 2007. Action is being taken against the persons, vehicles involved in this trade. Besides, state level and district level squads have been constituted to prevent smuggling and illegal trade of minerals.

During 2006-07, twelve such cases were detected in Talcher and Jajpur Road mining circle and 23.23 tonne of chrome ore was seized. While 8 vehicles were seized during the year, Rs 375,021 was collected as penalty. Similarly, in 2007-08, 26 such cases were detected and 122.49 tonne of chrome ore was seized. About Rs 4,77,000 was collected as penalty and 4 vehicles were seized. Amount of chrome ore seized increased to 162.7 tonne in 2008-09 and the penalty collected was Rs 1,934,307.

Source: Business Standard

Double-Digit Falls in Ferrochrome and Chromite Demand in 2009

Demand for chromite increased by an annual average rate of 4% for the
period 2000 to 2008, with ferrochrome consumption increasing by the same
amount. However, the onset of the economic downturn from mid 2008 has seen
demand for chromium plummet, with prices following a similar path.

Ferrochrome consumption fell by 3.5% in 2008, in year-on-year terms, as
major Asian and European consumers reduced orders to a minimum in an attempt
to run down inventories, as demand from end-users declined sharply.

Export prices for ferrochrome have fallen by 68% for the ten months to
May 2009, as demand from stainless steel, the main end-use for ferrochrome
has collapsed. In response to weakening demand and falling prices producers
have cut production, in some cases ceasing operations all together. Around
70% of world ferrochrome production capacity was suspended in the first
quarter of 2009, with the Xstrata-Merafe joint venture operating at 20% of
capacity since December 2008, while Samancor Chrome suspended all production
in the first quarter of 2009.

With the sudden disintegration of end-user demand, the forecast is for
demand for both ferrochrome and chromite to fall in 2009. Demand for
ferrochrome will fall by around 24% in 2009, year-on-year, on the back of the
3.55% fall in consumption in 2008. However, a recovery could begin to
materialise from the fourth quarter this year, as the global economic
situation begins to ease.

Stainless steel producers are the largest consumers of chromtie, in the
form of ferrochrome. The huge increases in stainless steel production in
recent years has seen demand for both ferrochrome and chromite reach record
highs.

Global stainless steel production has been driven in recent years by
emerging markets, with China leading the way. Double-digit GDP growth of
recent years has helped fuel China's growing demand for all commodities, with
Chinese producers contributing some 80% of the increase in global stainless
steel output since 2000.

However, stainless steel production fell in 2008 by around 7%, as
producers attempted to respond quickly to weakening demand as a consequence
of the global downturn. Production in 2009 will again fall, as producers cut
output, with some operating at well below 50% capacity. On the back of these
stringent production cuts, world stainless steel output is forecast to fall
by 13% in 2009. However, the market could start to recover as early as the
fourth quarter of this year, as a degree of restocking takes place in
anticipation of a limited recovery in 2010.

Demand for chromium chemicals has declined in recent years, as
environmental concerns have seen tightening legislation limits its use in the
two main end-uses, leather tanning and metal finishing. Global demand peaked
at around 1Mt (sodium dichromate equivalent) in 2001, falling by 32% to
680,000t in 2008.

Going forward, demand for chromium chemicals is going to be modest at
best, growing at an annual average rate of 2.5-3% over the next five years.

Strong growth in the aerospace industry in recent years has seen demand
for chromium metal increase sharply. World consumption of chromium metal
increased by around 13% in 2008 to 40,000t, with demand for superalloys, the
primary end-use market for chromium metal, driving the market. Over the next
few years, the global downturn will have a negative impact on this market, as
the aerospace industry in the USA and Europe declines. The market for
chromium metal will decline in 2010, with growth returning in 2011.

Ferrochrome prices were negotiated at USCent69/lb in the second quarter
of this year, almost 70% lower than the USCent213/lb peak set in July 2008.
Prices for chromite have fallen by 73% to US$140/t from its US$520/t peak in
July 2008, while prices for chromium chemicals and chromium metal have both
fallen by almost 45%.

Given the weak outlook chromite and ferrochrome demand, prices are
forecast to be much lower than those set in 2008. Ferrochrome prices are
forecast to average USCent77-80/lb this year, as end-use demand remains
depressed. However, prices in the fourth quarter of 2009 could increase on
the back some restocking. Chromite prices are likely to follow a similar
pattern, with average prices for 2009 at US$135/t, with a potential 20-30%
increase for 2010 as demand returns.

Source: Roskill

Zimbabwe To Ban Raw Chrome Exports

The Government in Zimbabwe is to impose a ban on the export of raw chrome without value addition as the country is losing revenue, Minister of Mines and Mining Development Obert Mpofu said in a telephone interview.

Consultations with chromite exporters to add value to the mineral were also under way.

Mr Mpofu said some companies had resumed the smelting of chromite ore to ferrochrome while negotiations with exporters were ongoing.

“Negotiations have reached an advanced stage to ensure that they process the mineral before exporting so that the country could get more by way of churning out a semi-finished product.

“We are engaged with chrome ore exporters to ensure that they process their chrome to ferrochrome before exporting it,” said Minister Mpofu.

The minister said companies like the Zimbabwe Mining and Smelting Company (ZIMASCO) and ZimAlloys had already started smelting chrome.

He said even small-scale players would be taken on board so that they enjoy the various deals and arrangements that have been struck by the Government.

“The Government will also be seeking to promote small-scale chrome miners to set up more smelters around the country while imposing a total ban on the export of chrome without value addition,” he said.

There are many buyers in South Africa, China and Europe willing to buy stockpiles of the mineral.

The Government has embarked on the resuscitation of closed mines that have potential to benefit the country through value addition.

Under the Short Term Emergency Recovery Programme the exploitation of chrome was given priority as the country had huge reserves of the mineral. Zimbabwe has the world’s second largest chrome reserves.

“The inclusive Government will therefore take advantage of the existing beneficiation facilities to refine all important base metals which include chrome, copper, nickel and iron ore,” read the STERP document.

STERP noted that the low level of beneficiation and value addition to our mineral resources limits the contribution of mining to the revival of the economy.
Under STERP initiatives to increase beneficiation and value addition for all major minerals including gold, platinum, nickel, copper, coal, coke, and other various non-ferrous ores and concentrate would also be undertaken including penalties for the export of raw minerals where value addition options are readily available.

Presently, virtually all diamonds, emeralds and semi-precious stones are exported in raw form, while a small percentage of gold is manufactured into jewellery.
“This process will take advantage of the existing local gold refinery and mature jewellery industry, which will make it immediately and commercially feasible to add value to our mineral resources,” reads STERP in part.

Capacity to beneficiate industrial minerals remains low and it requires more effort to increase beneficiation capacity in the medium to long-term.

Chrome mining is undertaken in Shurugwi, Mutorashanga, Lalapanzi and Guinea Fowl with the smelting being done in Kwekwe.

Chrome mining in Shurugwi started as open cast workings in 1905.

Source: The Chronicle, Zimbabwe

RosSpetsSplav Expects Chrome Demand To Rise This Summer

Russia's largest chrome producer expects output of the metal, used in kitchen goods and the aerospace sector, to recover from the summer after a drop in demand led to an abrupt halt to production last year.

RosSpetsSplav is now running its Klyuchevsky Ferro-Alloy Plant at 40-50 percent of monthly its capacity of 600 tonnes and expects production this year to almost match 2008 levels, the company's president, Vyacheslav Grigoryev, told reporters.

"From March and April, we see real demand from end-users," Grigoryev said in comments approved for publication on Monday.

Privately owned RosSpetsSplav, or Russian Special Alloys, slashed output in response to the economic downturn, which cut demand and prices for chrome . The metal is also used in bathroom goods, dental and other medical applications.

Klyuchevsky Ferro-Alloy Plant, in the Sverdlovsk region in the Urals mountains, halted production for a week in November and for 10 days in December. Output last year fell to 6,460 tonnes from 9,004 tonnes in 2007.

Grigoryev said the Klyuchevsky plant produced 200 tonnes of chrome metal in March, up from 38 tonnes in the whole of the fourth quarter of 2008.

"This year we will produce a little less than last year," Grigoryev said. "But we see no ill in that, as we expect a slow but gradual rise in output from the summer."

Klyuchevsky produces more than 30 ferro-alloys used to toughen steel and is the only plant in Russia able to produce ferro-niobium, an alloy used to make high-quality pipes.

The company has a unit in the Democratic Republic of Congo, Congo Russia Industry, which participates in a project to mine niobium there. Until recently, this project was mothballed.

"As the political situation (in Congo) has returned to normal, we have started producing niobium concentrate," Grigoryev said.

"The first concentrate sales will start in the next few weeks. It is an investment project that will start to pay back," he said, adding that a deal was planned to sell concentrate to a British company, which he would not identify.

Grigoryev said the financial crisis had also benefited the Klyuchevsky plant, as the price of raw materials had fallen much more than the price of chrome metal.

The company buys chromite ore mainly from Turkey's Cihan Mining and Metal Co.

"Currently offered volumes are very significant, which allows us to agree terms with new suppliers," Grigoryev said.

"We have proposals to buy ore in Albania, South Africa and China. We are also buying raw materials from Kazakhstan and from the local Uralkhrom company," he said

Source: Forexpros.com

Platinum Group Looks To Venture Into Manganese, Chromite

Platinum Group Metals Corporation is looking at venturing into manganese and chromite given the dampened demand and prices of nickel.

Mr John H Cabarrus SVP of Platinum Group said that "We are seriously considering multi alloy production like ferromanganese or ferrochrome just to be able to utilize our plant and equipment. We are conducting a lot of research and development and looking at costs and revenues we can generate as a result of converting to ferrochrome or ferromanganese."

He said that however, it has to apply for an environmental compliance certificate from the Environment department for its new venture. The Platinum Group will submit its application next month.

Platinum Group has shelved its nickel processing plants in Iligan City in Lanao del Norte and in the town of Manticao in Misamis Oriental. A total of 139 and 129 workers were retrenched from the Iligan and Manticao plants, respectively. Seventeen employees were left in Iligan and six in Manticao. It invested USD 20.59 million and USD 9.948 million to develop the Manticao and Iligan processing plants, respectively.

Berong Nickel Corporation ceased its Palawan operations last month amid dampened demand and rock-bottom prices of nickel, cutting 600 jobs and retaining less than 50 employees. But despite the drop in demand, the Platinum Group wants to sell 350,000 to 500,000 wet tonnes of nickel ore, extracted from its 4,376 hectare mine in Surigao del Norte to Chinese traders this year.

Source: Business World

MMTC Cuts Floor Price Of Chrome Ore

MMTC has revised and largely reduced the floor price of chrome ore to be shipped from India from March 1st 2009 to April 15th 2009.

The new floor price of Indian chrome concentrate for export is USD 250 per tonne FOB. The price stood at USD 710 per tonne at the end of May 2008.

In view of the falling price of chrome ore in the international market, MMTC considered in January 2009 to reduce the floor price of Indian chrome concentrate for export but its conclusion was carried over to the middle of February. The floor price of friable chrome ore to be exported from India has been so far set by USD 5 per tonne higher than that of chrome concentrate.

Source: Steel Guru

China Chrome Exports Fall

China imported 324,648 tonnes of chrome ore in November of 2008, around 50% down compared to November 2007.

South Africa was the biggest exporter of chrome ore to China at 95,000 tonnes, though that was a decrease of 65.1% from the previous month.

Imports from Turkey of 55,000 tonnes was down by 52.2%, while Oman supplied 60,000 tonnes, Australia 33,000 tonnes, Philippines 31,000 tonnes and India 18,000 tonnes.

Source: Yieh

China Minmetals To Acquire SA Chromite Miner

Reports from China suggest that the China Minmetals Corporation is planning to acquire 70% of the shares of Vizirama, a South African chromite mining company based in Townlands. Vizirama possesses the exploration rights for mineral resources in the region and the acquisition will enable Minmetals to secure the leading position in the first phrase of exploration.

The acquisition will be conducted by Minmetals' subsidiary, Minmetals Development Co Ltd with a total investment of several million USD. The National Development and Reform Commission has already granted the investment and the further approvals are needed from the Ministry of Commerce and the State Administration of Foreign Exchange.

China Minmetals Corporation has had a long-standing interest in South African mineral resources and has a number of investments in the region, including the USD 6.5 million acquisition of the Naboom ferrochrome mine in 2007, a three-year contract with Palabora Mining Company to purchase 2 million tons a year of iron ore and an office in South Africa to handle the export of chrome concentrate and manganese to China.

Source: Steel guru