Gladiator Exercises Orusur Option

GLA Takes 80 Per Cent Interest In Uruguay Assets

Orosur Mining Inc. today announces that on 30 April 2010 Gladiator Resource Ltd. has exercised its option pursuant to the Option Agreement announced on 11 January 2010 whereby GLA may earn an interest of up to 80% in the iron ore, manganese ore and base metals ("Assets") in OMI's project area in the Isla Cristalina Belt in Uruguay. OMI retains the rights to gold, silver and diamonds over the project area.

David Fowler, Chief Executive Officer commented: "We are pleased to partner with Gladiator's management team who have significant iron ore experience. Initial field work is confirming historical results which identified the potential to define significant iron ore resources within the Isla Cristalina Belt. Gladiator has moved quickly to raise the funding to complete its work program in the coming year and we look forward to supporting them in progressing the project".

The Option has been exercised subject to the execution of a Definitive Agreement detailing the farm-in joint venture arrangements. Upon execution of the Definitive Agreement GLA will issue AU$ 100,000 worth of fully paid shares to OMI at market value, calculated over the preceding five day trading period. The execution of the option entitles GLA to commence earning the initial 20% interest in the project by spending $US 1,000,000.

GLA will be entitled to earn a 20% interest in the Assets by spending US$ 1,000,000 on work programs. GLA may, at its option, earn a further 31% by spending a further US$ 4,000,000 taking its total interest to 51%. GLA may then elect to earn a further 29% taking its interest to 80% by producing a Bankable Feasibility Study on or before 31 December, 2014.

Based on GLA's initial understanding of the resource potential of the Project area, a number of development possibilities are expected to be considered:

1. Production of iron ore concentrates

2. Production of maganiferrous iron ore concentrates

3. Production of iron ore pellets

4. Production of pig iron and ferro alloys.

Profits Dive At OM Holdings

ASX-listed OM Holdings Limited (OMH) has reported a fall in post-tax profits of 77 per cent from last years $115.6 million to $26.9 million for the year to 31 December. The fall is blamed on lower prices and volumes for its manganese ore.

OM is looking for a better 2010 with budgeted production and sales of 1 million tonnes of ores and 41000 tonnes of high carbon ferromanganese powered by estimated Chinese steel production this year of 620 million tonnes.

Meanwhile OM also announced that reserves at its Bootu Creek manganese mine in Australia’s Northern Territory now stands at 32.9 million tonnes at 23.1 per cent manganese content.

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.

India Imposes Moratorium On Goa Mining

India’s minister for the environment and forests, Jairam Ramesh, has told the Goa chief minister Digambar Kamat that the ministry has “imposed a moratorium on consideration of mining proposals for environmental clearance… till the mineral policy for the state of Goa is finalised.”

Ramesh has also called for a comprehensive environmental impact assessment of current mining activities and for those which permissions have been given over the last few years. The Nagpur-based National Environmental Engineering Research Institute is to carry out the study.

There are about 100 operational iro -ore and manganese ore mines in Goa’s hinterland which export nearly 33 million tons of ore annually.

Chinese Manganese Company Exploring In Fiji

A Chinese manganese smelting company will soon carry out exploratory work in Fiji.
China Yunnan Metallurgical Company (CYMCO) will carry out exploration work on on potential manganese deposits in Nasaucoko in the upper-reaches of Navosa on Fiji’s largest island, Viti Levu. The work is expected to cost $5million over the next three years.

The Fijian government has granted a 30-year surface lease to Viti Mining Limited which is exploring in the area. Viti CEO John Sanday said that mining is expected to start next month. Mr Sanday said CYMCO officials were impressed with the manganese ore grade in Fiji during a visit in December. Of CYMCO he said "by the end of the year it will be the biggest manganese smelting company in China and in a couple of years it will be the biggest in the world with an output exceeding one million tonnes of manganese ferroalloy per year," he said.

The manganese ore is expected to be bought by CYMCO at market prices.

Chek-Su.VK Signs Agreement For Manganese Processing Plant

Russian mining and smelting company CHEK-SU.VK has signed an agreement to build a manganese ore processing plant in the Krasnoyarsk Region of Russia.

Supplies of ore from deposits in the Kemerovo Region will be transported to the plant via Khakassia to be processed.

The project's total value is estimated at RUB 22 billion and will be completed in 2013.

The agreement was signed at the Krasnoyarsk Economic Forum which opened on Friday. Around 1000 representatives of government agencies and business have gathered at the forum to discuss issues of modernisation.

Assmang To Produce Ferromanganese At Machadodorp Works

South African ferrochrome producer Assmang has announced to shareholders that it plans to convert one of the furnaces at its Machadodorp Works to produce high-carbon ferromanganese, rather than ferrochrome. The converted furnace is expected to produce 4000 tonnes per month of HCFeMn and production will commence by the middle of this year.

In its statement Assmang said that it needs to meet higher than expected demand for high-carbon ferromanganese but that it does not have excess capacity at its Cato Ridge Works to expand production.

The company said that it still expects to meet its contractual obligations for ferrochrome and that it is committed to continuing ferrochrome production. Its ferrochrome furnaces were idle for much of 2009.

Nippon Steel Increases Stake In Ferromanganese Producer Nippon Denko

Nippon Steel Corporation has increased its stake in ferroalloy producer Nippon Denko from 9.5 percent to 15 percent. Nippon Denko will become an equity method affiliate of Nippon Steel.

The decision came after the companies' agreed to further strengthen their alliance, in order to enhance their competitive edge and corporate values.

The two companies have maintained a close business relationship through their trade in ferromanganese and the new agreement will enable both companies to stabilise their procurement of raw materials – including manganese ore – for Nippon Denko and to conclude a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.

ArcelorMittal Lands Jharkhand Exploration Licences

ArcelorMittal has been given permission to explore for manganese and iron ore deposits in the Indian state of Jharkhand. The state’s mining department has awarded an exploration licence in the West Singhbhhum district. India’s mines ministry has been sent a report on the issue and is expected to make a final decision soon.


The company is seeking permission for two blocks of 662 hectares and 416 hectares to explore manganese and iron ore in the Karampada region. While 662 hectare is a gazetted area, the 416 hectare area is non-gazetted.


Sources in India’s mining department expressed hope that the presence of companies like ArcelorMittal will provide for other prospective investors. It will also help the company move ahead with a proposed greenfield project that has been pending since 2005.

Ant Hill Manganese Ore Vessel Departs For China

Mesa Mineralshas reported that the vessel carrying the second trial shipment of manganese ore from Ant Hill sailed from Port Hedland early this morning.

The Opal Amber, which is carrying the 18,006 tonne cargo, is scheduled to arrive in northern China early in February.

Managing Director Alan Scott said the second trial shipment, which is of medium manganese and relatively high iron content, was similar to what the company would anticipate to be its medium grade product offering.

"It was keenly sought after by a wide range of customers, confirming our view that the market will welcome both our high and medium grade products," Mr Scott said.

"The geographical spread of these two cargo destinations within China is indicative of the wide spread of potential buyers who wish to establish regular ore supply relationships with Mesa."

The interest expressed in both trial shipments is in part due to their excellent handling characteristics in part due to smelting performance and due to the process innovations developed by many Chinese customers to efficiently smelt high iron manganese ores.

The two trial shipments have effectively completed the ‘export ore dimension’ of the trial mining exercise carried out at Ant Hill, with remaining ore stocks earmarked for beneficiation or secondary processing at a later date.

The completion of the trial mining exercise represents another significant step forward in Mesa’s efforts to attain a sustainable income stream from the export of metallurgical grade manganese ores into the steel sector.

Importantly, Mr Scott said it also advances Mesa’s efforts to establish a second sustainable income stream from the domestic processing of low grade manganese ores mined in the Pilbara, into high grade manganese products consumed in other industry sectors, utilising the Company’s patented hydrometallurgical technologies.

"Given that all regulatory hurdles in the way of opening a new mine have now been overcome, our attention can now be focused upon the commercial decisions that are before us, if we are to see the great potential of this mining venture fulfilled," he said.

"In this regard, Mesa believes that it is possible to move the Ant Hill mine from its present ’mothballed’ state, to a fully operating mine site, in a relatively short period of time."

Source: Proactive Investor

Indian Steel Ministry Seeks More Say On Mine Licences

The Steel Ministry has sought absolute powers from the government on grant of mining rights for iron ore and other minerals to steel firms, a request that would, if granted, expedite projects, including that of Posco and ArcelorMittal, which are stuck for want of secure raw material supply.

"...All matters pertaining to exercise of powers on behalf of the Central Government in respect of iron ore, manganese ore and chrome ore should be delegated to the Ministry of Steel," Steel Secretary Atul Chaturvedi said in a letter to the Cabinet Secretary K M Chandrasekhar.

Under the existing rules, grant of mineral concession for all minerals, including iron, manganese and chrome ores, rests with the ministry of mines, which gives final approval to the recommendations of the state government.

"...I would request you to make necessary amendments in the GoI (Allocation of Business) Rules, 1961 to make provision for exercise of the powers of the Central Government by Ministry of Steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore," Chaturvedi wrote.

However, such a move may deepen the rift between the steel and the mines ministries, that differ over matters related to iron ore export and grant of leases among others.

When contacted Mines Secretary Santha Sheela Nair said, "We have not received any formal communication on it and as and when required we will send a reply to the Cabinet Secretary. If he is looking after the interest of his ministry, I will protect the interest of my ministry."

Source: Business Standard

China To Triple Manganese Ore Imports From China

China will triple its manganese ore imports from Ghana, according to information from global steel industry sources.

Manganese ore which is an important raw material for the production of steel is in high demand following the rising demand for steel and the decline in manganese ore stocks.

China which imports about 80% of its manganese ore from Gabon, South Africa, Australia, the ASEAN region and Ghana is intent on doubling the overall import figure.

China plans to triple the 45,000 tonnes manganese ore import from Ghana by 1.8 times.

Available statistics show that from January to October of 2009 the manganese ore from Gabon through China’s Guangdong port reached 349,000 tonnes up by 41.4%, ore from South Africa rose to 218,000 tonnes, up by 11.1%. The ore from Australia was 166,000 tonnes down by 62.6% and from Brazil, China imported 152,000 tonnes, a significant increase by 1.3 fold. Imports from the four countries accounted for 83.7% of the total manganese ore imports through the Guangdong port. An additional, 78,000 tonnes import was from ASEAN.

According to Guangzhou Customs’ available data of December 3, 2009, from January to October of 2009 manganese ore and concentrate imported through Guangdong port reached 1.059 million tonnes worth US$230 million down by 3.7% year-on-year and 55.3% year-on-year.

Compared with September imports, October imports decreased some 14.9 million tonnes up by 39.1% year-on-year worth US$25.93 million down by 60.1% yearon-year.

China’s growing interest in Ghana can be seen in the fact that it has shown a strong interest in the country’s nascent oil industry. About two days ago, China gave money to Ghana to develop its oil infrastructure. China has also been a strong contender for the stake of Kosmos Energy in Ghana’s largest oil field, the Jubilee field.

In October 2009, a Chinese mining company , Bosai Minerals Group Co. Ltd., offered to pay $30 million for the Awaso bauxite mine in Ghana.

World aluminae giant, Rio Tinto, owners of the mine were reported to have agreed to sell 80% stake in the mine to Bosai.

Mesa Makes First Manganese Ore Shipment

West Australia-based Mesa Minerals this week successfully sailed from being a miner to an ore-exporting company with long-term contracts on the horizon.

Its export this week to China of its inaugural shipment of manganese ore and its name-change this month from HiTech Energy mark a new start for Mesa.

The 24,000-tonne shipment was sourced from Mesa's Ant Hill project, 400km east of Port Hedland. The project is a joint venture with Auvex Resources.

Mesa managing director Alan Scott says the first shipment represented a very important step forward to attain a regular and long-term income stream.

``The achievement of this goal is seen as a complement to and a funding source for the company's parallel efforts to establish a second regular and long-term income stream from the secondary processing of the lower grade ore fractions mined at Ant Hill,'' he says.

``The lessons learned from the many problems encountered and overcome in achieving this first shipment will stand the company in good stead for the future.''

Mr Scott says the company will also soon learn about the performance of the ore when it becomes smelter feed in China.

He says this will allow Mesa to more precisely determine and supply the optimum grades of ore products to meet demands.

Mr Scott also thanked the people and businesses that helped Mesa reach its first shipment.
``Without their support we simply could not have achieved a successful outcome.''

The first shipment is the first from a trial production. Mesa now anticipates larger scale mining from Ant Hill and its second project, Sunday Hill, which were previously mined in the post-war period.

A second shipment to China is expected early in the New Year.

Mesa and Auvex are refining mine plans, planning road improvements and seeking quotes on infrastructure with contractors.

Source: Perth Now

Assman Agrees Manganese Ore Price With China

It is reported that Assmang Limited has settled a monthly fixed price agreement with Chinese users and the November offer is accepted by the majority in the Chinese market.

AS per repot, the current manganese ore price stands at USD 6 per tonne, which is lower than the Australian offer USD 6.5 per tonne.

Meanwhile BHP Billiton had introduced Japan the same type of price agreement, which has started in October.

However, BHP Billiton has encouraged China to use floating price depending on the market, and has already offered the price for October.

Source: Steel Guru

Orissa Suspends Director Of State Mines

Orissa government on Wednesday put under suspension director of state mines department R.N. Sahoo in connection with multi-crore mining
scam in the state. The move follows interrogation of the mines official by the vigilance sleuths recently.

The vigilance department which is probing into the mining scam that threatened to tarnish the image of chief minister Naveen Patnaik.

Earlier, five senior officials of mines department were suspended in the same case.

The opposition Congress had alleged that the scam pertaining to illegal mining and sale of minerals like iron ore, manganese and chrome ore from different mines in Orissa could run to thousands of cores rupees and had demanded CBI probe.

A two-member bench of the Orissa high court recently had issued notices to the governments at the centre and state besides CBI while admitting a public interest litigation [PIL] case seeking probe by the premier investigating agency into alleged multi-crore mining scam.

The vigilance department has already detected illegal mining and transportation of iron ore and manganese worth Rs 110 crore from a mine at Joda in Keonjhar district.

A mine trader, one retired mines department officer, five senior officials of the mines department and one forest officer were earlier arrested in this connection and later released on bail.

SourcE: Economic Times

Manganese Ore Price At USD7-8 Per MTU

TEX has reported that the spot price of medium grade manganese ore to be shipped to China has suddenly risen steeply and the current price has reached a level of USD 7 to USD 8 per Mn 1% CIF. It seems certain that the price of manganese ore to be offered by major manganese mines to regular consumers for shipments in October to December will rise by a considerable extent. As a reference, the price of medium grade manganese ore settled with Chinese customers for shipments in July to September quarter is USD 3.50 per Mn 1% CIF.

Some of major manganese mines in South Africa have already sold all their cargoes to be shipped in the October to December quarter. Also, major manganese mines in Australia have already sold out manganese ore for shipments in the July to September quarter. A reduction in the production of manganese ore that began in the October to December quarter of 2008 by major manganese mines has had a substantial effect on the market together with rapidly improved demand and this change of the market position has now come to the surface.

World production of manganese ore decreased by 26% in October to December 2008 and by 54% in the January to March quarter of 2009 in comparison with production reached at its peak. An improvement in the supply and demand of manganese ore has meant a steep rise in price for manganese ore to be imported into China and the spot price of medium grade manganese ore for China during at end of July to the first week of August jumped to a level of USD 7 to USD 8 per Mn 1% CIF, which is compared with USD 5.00 to USD 5.50 per Mn 1% CIF China prevailed in July.

The world output of crude steel in the first half of 2009 was 549 million tons, having decreased by 21% compared with that in the same period of 2008, but the world output of manganese ore in the first half of 2009 had decreased much more than that of crude steel.

Source: Steel Guru

China Manganese Ore Imports Up 15% In June

It is reported that China imported 709,605 tonnes of manganese ore in June 2009, up by 15% MoM compared to 617,146 tonnes in May and almost the same as 712,667 tonnes in June 2008.

The main manganese ore import resources were Australia 281,549 tonnes, up by 240% MoM, South Africa 164,645 tonnes, up by 83.3% MoM, Gabon 89,005 tonnes, Ghana 27,024 tonnes, Myanmar 22,067 tonnes, Kazakhstan 14,802 tonnes and Brazil 14,688 tonnes.

Source: Steel Guru

Austral To Buy Guinea Assets

Austral Coke & Projects through its Guinea based subsidiary, Astra Energy SARL, has acquired 16 prospecting licenses of rich iron ore, bauxite and manganese ore blocks measuring 12,63,000 acres in Guinea in West Africa. The contract term is for 30 years with an extendable term of another 30 years. Austral is the first Indian company to get licenses in Guinea and biggest in terms of land acquired. (12,63,000 acres)

The expected reserves of 3.5 billion tons of bauxite spread over 2,950 sq kms under six licenses. Iron ore expected services of 1.8 billion tons spread over 1,455 sq kms under three licenses and, manganese reserves are expected at 53 million tons spread over 710 sq kms under seven licenses.

The company plans to extract annual quantity of 5 million tons of bauxite and iron ore and 0.10 million tons of manganese from these mines initially. It also has 6 coal prospecting licenses admeasuring 100,000 hectares in Mozambique through its 95% controlled Mozambique-based subsidiary Astra Mining.

Source: Myiris

Vale Production Report Q2 2009

Vale S.A. (Vale) had a better operational performance in the second quarter of 2009, showing significant percentage increases in the production of iron ore (+23.1%), pellets (+47.4%), manganese ore (+387.9%), platinum (+18.6%), palladium (28.6%), kaolin (+40.5%), and thermal coal (+125.5%) relative to the low levels of 1Q09.

Over the last few months, a recovery in global industrial production has been taking place, a process in which Asia is at the forefront. However, it is worthwhile highlighting that the global economy is recovering from a very low level of activity, after a powerful demand shock.

Given the signals issued by some leading indicators of industrial production and the conclusion of the de-stocking process of the steel industry in some regions - such as Europe where it was running at very low levels of capacity utilization - it is likely that the gradual recovery of the global demand for minerals and metals will continue over the next six months which will lead to us to increase operational activities although at a more moderated pace than last year.

The whole press release is available @ www.vale.com/investors

India Shelves Plans For KIOCL Equity Dilution

The Indian government has decided to go ahead with the disinvestment of state-owned Manganese Ore India Ltd, even as it shelved plans for further equity dilution in the ailing KIOCL.

"KIOCL is not a case for disinvestment as of now. Currently, its strategic partnership with NMDC is being worked out. Moreover, we will be sending the proposal for disinvestment of MOIL shortly (to Finance Ministry)," Steel Secretary P K Rastogi told reporters.

The government is likely to offload 10 percent equity in MOIL, which is engaged in mining of manganese and production of ferro alloys.

Meanwhile, the government has put on hold the proposal to offload about 9 per cent equity in the Kudremukh Iron Ore Company Limited (KIOCL), which was closed down last year.

The Finance Ministry had earlier asked its counterpart in the steel ministry to work on divesting stakes in navratna firms NMDC, MOIL and KIOCL, as part of a broader plan to mobilise resources to meet their funding needs.

The government is likely to earn about Rs 102 crore by divesting 10 percent stake in MOIL. It has also been planning to list the company for the past one year now.

The government may also sell a minimum of 8.3 percent stake in already listed NMDC Ltd, which may fetch it over Rs 10,000 crore. It has already offloaded about 1.7 percent of its equity in the country's largest iron ore firm.

About 1 percent stake in Kudremukh Iron Ore Company Ltd (KIOCL) is already offloaded and is listed in regional stock exchanges. As per the 100-day agenda, the government is planning to make it a subsidiary of NMDC and give life to the company shut since last year.

Finance Secretary Ashok Chawla yesterday said that the disinvestment programme will kick off with the dilution of government equity in listed entities, where public holding is less.

Apart from the PSUs under the steel ministry, the government is learnt to have identified MMTC, Coal India Ltd, Hindustan Copper, Oil India Ltd and NHPC for disinvestment.

At the time of presenting the Union Budget for the current fiscal, Finance Minister Pranab Mukherjee said that while retaining the 51 percent stake in the PSUs, the government is committed to the disinvestment programme.

He also added that the public holding in the listed state-run entities should be raised in a phase-wise manner.

The Economic Survey had suggested the government to raise up to Rs 25,000 crore through selling its stake in PSUs.

Source: Zee News