Russia's Iron Ore Concentrate Production Rises 37 Per Cent

Figures released by Russia’s state statistics service showed that the country produced 37 per cent more iron ore concentrate in the first two months of 2010 than in the same period last year. Production was 14.7 million tonnes in January and February.

Coal output in the same period increased by 17 per cent to 53.8 million tons while metallurgical coke output stood at 4.5 million tons, up 40 per cent.

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.

Clines Raises Funds To Complete New Elk Mine Rehabilitation

Canadian coal miner Cline Mining has raised C$6.9 million to complete the rehabilitation of its New Elk thermal coal and metallurgical coal project in Colorado. C$3.9 million has come in the shape of a loan from Mitsui Matsushima International Pty of Tokyo with the rest coming from a private placement of shares and warrants.

The New Elk coking coal mine is situated near the town of Trinidad in Colorado. It has a coal resource of 315 million tons of coal and will directly employ 450 employees. The mine rehabilitation program is presently in due for completion in July 2010 with the first saleable production of coking coal expected in the fourth quarter of 2010. The mine will reach an annual capacity of 1.3 million tons in 2011, proceeding continuously to the production and sale of 3.0 million tons of coal annually, slated for world export markets.

The Mine has large in-place compliant coal resources and Cline expect further significant production in the future.

Ableauction Buys Chinese Coke Producer

Online auctioneer ableauctions.com has bought SinoCoking, a coal and coke producer based in the Henan Province in the People's Republic of China, in a deal which will see the current Ableauctions board step down.

SinoCoking, which began producing metallurgical coke in 2002, currently holds mining rights for approximately 2.5 million tons of coal from mines located in central China.

Under the terms of the deal, ableauctions.com CEO Abdul Ladhia will step down from his role to be succeeded by Sinocoke founder and President, Mr. Jianhua Lv. In addition, the current board of directors of Ableauctions will step down to be succeeded by seven new directors designated by SinoCoking.

SinoCoking produced and sold 154,631 tons of coke, 55,360 tons of washed coal, and 72,923 tons of raw coal during the year ending June 30, 2009 generating $51 million in revenue from sales. During its 2009 fiscal year, SinoCoking had audited net income of approximately $17 million on a GAAP basis.

Czech Republic's NWR Agrees Coke Price Hike

Czech coal miner NWR said on Wednesday that it has agreed Q1 contracts with an 18 percent rise in coking coal prices and 29 percent rise in coke prices. The price of coking coal will rise to 103 euros under the new contracts. Coking coal makes up 60 per cent of NWR’s output.

The miner is targeting steady coal production in 2010 after hitting 11 million tonnes last year, having earlier estimated production at 10.5 million tonnes for the year. A recovery in the central European steel industry has led to an increase in demand for NWR’s coking coal products.

Jindal, Rockfield End Takeover Talks

Australian coal miner Rocklands Richfield has ended takeover talks with India's Jindal Steel and Power. Rockfield said talks had ended because the deal was not in the best interests of shareholders.

Jindal last month matched an offer of 56c a share from China's Meijin Energy Group for the coking coal developer, valuing Rocklands at A$197 million.

Negotiations began in September when the two parties agreed a takeover by Jindal at 42c a share which valued RCI at $146mn. Two further parties – India’s Essar group and Chin’s Meijin – then joined the bidding battle although Essar suddenly quit the bid without citing any reason. Both Jindal and Meijin have bid $197mn for RCI.

Rocklands has coal tenements in Queensland that it estimates hold more than 900 million tonnes of coal and has a coking coal plant in eastern China.

Ennore Coke Close To Acquiring Australian Coke Mine

The Financial Express has reported that Ennore Coke Limited is close to acquiring the Broughton coking coal mines in Australia, becoming the country's second met coke company after Gujarat NRE to have overseas coking coal assets.

Mr Ganesan Natarajan president & CEO of Ennore Coke said that the company is asked a price of USD 12 million for taking over 90% stake in Australia's Broughton coal mines having estimated reserves of 30 million tonne.

He added that "Although at one point of time we thought that the valuation would further drop to around USD 7 to USD 8 million, finally it has been valued at USD 15 million."

The process of stake acquisition is expected to be completed by July next year. Rio Tinto, the global mining giant, which was also in the race, finally backed out and paved Ennore's way for acquisition, he added.

Mr Natarajan said that the Haldia unit, which is currently expanding its capacity from 150,000 tonnes per annum to 300,000 tonnes per annum at an investment of INR 80 crore, would also require an additional 200,000 tonnes of coking coal above its present 600,000 tonnes requirement.

Source: Steel Guru/Financial Express

Puda Coal In Equity Transfer Agreement

Puda Coal, Inc.,a supplier of metallurgical coking coal used for steel manufacturing in China, has closed an 18% equity transfer agreement with Shanxi Jianhe Coal Industry Ltd. Co.

In May 2009, Puda entered into an equity transfer agreement to acquire 18% of Jianhe Coal. Pursuant to the agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement.

The company said it will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.

China-based Puda Coal, through its subsidiaries, supplies metallurgical coking coal used to produce coke for steel manufacturing in China. The company currently possesses 3.5 million metric tons of annual coking coal capacity.


SourcE: Trading Markets

Rocklands Rebuffs Jindal Revised Offer

Jindal Steel and Power (JSPL) has raised its bid for Australian coal miner Rocklands Richfield to match a counteroffer by a Chinese firm, only to be rebuffed by the Aussie firm.

Rocklands said the AUS $0.52 a share offer by China’s Meijin Energy was still “superior” than the revised bid made by Naveen Jindal’s JSPL.

The Australian firm has asked the Indian company to place a better bid. Jindal Steel had earlier offered AUS $0.42 a share and signed a term sheet with the Rocklands management on September 22.

After Meijin threw its hat in the bid ring, JSPL revised the offer to AUS $0.50, valuing the company at AUS $194.98 million, or around Rs 841 crore.

The latest Jindal offer is the same as the Ruias-owned Essar Group’s offer in October. Essar entered the fray in October 7 but dropped out of the race on October 20. Meijin Energy joined the bid battle on November 2 at a time when Jindal Steel was carrying out due diligence on Rocklands.

In the revised offer, JSPL wanted Rocklands to reject the Meijin offer, proposed infusion of new equity and sought board representation, all of which had been rejected by the Australian company.

Rocklands said the Chinese were giving a better deal, mainly because of the higher price.

JSPL, which has a steel mill and a power plant in Chhattisgarh and is expanding in Orissa, already owns 14.16 per cent in Rocklands.

The company is looking for coking coal abroad since there is an acute shortfall of the crucial raw material, used in steel making, in India.

Australia, South Africa and Indonesia are the three most sought-after destinations for steel companies seeking to own coking coal. China, which has large deposits of coking coal, rations export, thereby dictating the price.

The Rocklands acquisition will give JSPL entry into the Chinese coking coal market, which foreign companies find difficult to access.

The Aussie company has two metallurgical coke plants in China following its acquisition of China Coke and Chemicals in October 2007. These units make met coke from local coal.

Source: Calcutta Telegraph

Jindal Has Competition In Race For Rocklands

Jindal Steel & Power Limited has a new competitor in the race to acquire Australian coal miner Rocklands Richfield.

China’s Meijin Energy Group has come up with a higher offer, which has found favour with the existing management of Rocklands.

The Australian company has asked Jindal Steel to come back with a matching or higher bid, otherwise, it would terminate the ongoing discussions and allow the Chinese player to start exclusive talks.

Meijin is the third company to bid for Rocklands in as many months — India’s Essar Group had thrown its hat in the ring but soon opted out, leaving Naveen Jindal’s JSPL alone in the race.

Meijin Energy has offered to pay Australian dollar (AUD) 0.52 a share for Rocklands, higher than the AUD 0.42 being offered by JSPL.

Incidentally, Essar had offered AUD 0.50 a share for the Australian company but it did not receive formal support from the Rocklands management.

A Rocklands notice to the Australian Securities Exchange said it had received the Meijin bid on November 2, and after “careful consideration” it found that the bid was “superior” to the Jindal offer, which is 37 per cent lower.

However, the Rocklands board told its shareholders that neither the Jindal nor the Meijin proposals were formal offers at this stage. They are preliminary in nature and subject to due diligence, it said.

JSPL is carrying out a due diligence exercise after both parties signed a term sheet on September 22. According to the pact, Jindal was to complete the due diligence by October 31 and negotiate an implementation agreement by November 15.

On October 28, JSPL sought another month to complete the due diligence and sign the deal by December 15.

JSPL plans to invite Rocklands chairman Benny Wu to India for deliberations after it finishes its groundwork.

JSPL vice-chairman Naveen Jindal plans to visit Australia and China — where Rocklands has large operations — reflecting the Indian company’s keenness and commitment to the proposal.

Before the Meijin proposal came, both Rocklands and JSPL had agreed to extend the due diligence date to November 24 and seal the deal by December 8.

However, JSPL now faces the risk of being beaten by the Chinese company, which claims to be one of the biggest coke producers in China owning 10 coal mines with a combined reserve of 2 billion tonnes. The Meijin proposal values Rockland at AUD 200 million.

JSPL is one of the largest steel long products manufacturers in India with a mill in Chhattisgarh. It also runs a power plant there. The company is building a plant in Orissa and also expanding its power plant capacity in Chhattisgarh.

As the bid battle continues, JSPL has built up a strong position in Rocklands. It now holds a 14.16 per cent stake in the company. The shares were bought in three tranches from the open market and at a price lower than its own offer and that of Meijin.

Rocklands has two main assets — met coke plants in China and coal mines in Australia.

Source: Calcutta Telegraph

Coke Ovens "Getting Cleaner"

Coke oven technology in the 21st century will cut down on harmful gas produced by burning coal at high temperatures, whether its done by recovering the gaseous byproducts or burning them in the ovens, industry experts said on Tuesday.

The process by which noxious gases are burned in the coke ovens "is taking off in the U.S.," because it is a simpler process and poses less risk to the environment, said Hardarshan Valia, the co-chairman of the Met Coke World Summit, which opened yesterday in the Pittsburgh Hilton Hotel. The event, which has attracted more than 200 industry representatives from around the world, continues until Thursday.

"You can't smell the benzene or the other gases. Most of the steelmakers are going that way," said Valia, a metallurgical coal consultant and president of Coal Science Inc., a consulting firm in Highland, Ind.

Coke, produced by burning pulverized bituminous coal inside sealed ovens at high temperatures for about 18 hours, is used as fuel in a blast furnace to make steel. U.S. production of coke has dropped in recent years as the steel industry consolidated and coke production moved overseas, a result of increased demand in China and India, and stricter U.S. environmental regulations, Valia said.

The process where the gases are burned inside coke ovens uses the same principle as the H.C. Frick Coke Co.'s beehive coke ovens that dotted Fayette County in the late 1800s and early 1900s, but are not polluting the environment, said Hope Huntingdon of Murrysville, manager of technical services for Clark Laboratories LLC of Jefferson.

Unlike in Henry Clay Frick's day, when the coke ovens polluted the air, the gases are captured in process and burned up. "It's sucking the air in and not letting it escape," said Huntingdon, a former U.S. Steel Corp. researcher.

The more traditional process for reducing coke plant gas is the byproduct recovery system used along the Monongahela River at Clairton, where U.S. Steel operates the nation's largest coke manufacturing plant. The plant can produce about 4.7 million tons of coke annually.

In April, U.S. Steel postponed an $1.1 billion project to install new coke batteries and upgrade older ones because of a downturn in the steel industry.

Source: Pittsburgh Tribune

Sesa Goa To Raise Rs6,000 Crore

Domestic mining firm Sesa Goa on Friday said it will raise funds to the tune of Rs 6,000 crore through the issue of various securities in domestic as well as overseas markets.

The company plans to raise the said amount through the issue of Foreign Currency Convertible Bonds (FCCB), qualified institutional placements, global depository receipts, warrants or any other securities. A shareholders meeting would be held on October 20, to consider the fund raising of up to Rs 6,000 crore and an FCCBs issue of $500 million, Sesa Goa informed the BSE.

Regarding the $500 million (over Rs 2,400 crore) FCCB issue, the company said it has fixed the conversion price of its FCCBs at Rs 346.88 a piece. The proceeds from the FCCB offering would be used to expand the mining operations and to further develop i ts pig iron and metallurgical coke operations. The proceeds would be used in accordance with the external commercial borrowing regulations of the Reserve Bank of India, Sesa Goa said, adding that “the proceeds are intended to be used for financing the g rowth plans, including a rise in the mining capacity through organic and inorganic routes.''

The board has also approved a capital expenditure plan of Rs 605 crore ($125 million) for increasing the capacity of its Pig Iron plant along with expansion of Met Coke Plant and setting up a Waste Heat Recovery Power Plant.

Source: PTI

Pinnacle Calls Back 100 Coal Miners

Cliffs Natural Resources Inc. announced Friday that its wholly owned subsidiary, Pinnacle Mining Co., LLC, is calling back about 100 employees back to work at its Pinnacle and Green Ridge No. 1 mines. Employees are expected to return to work early in August.

The callback was prompted by a modest improvement in current orders and in the market expectations going forward. Both mines had been idled.

The Pinnacle and Green Ridge No. 1 mines are located near Pineville and produce metallurgical coal for the steel industry. Metallurgical coal demand has been reduced as the steel industry has cut back production in the face of the global economic slowdown.

In April, Cleveland-based Cliffs announced it was indefinitely idling the Green Ridge No. 1 mine, reducing operations at the Pinnacle preparation plant and halting production at the Pinnacle mine for approximately two months. The moves resulted in the layoffs of about 290 employees.

Cliffs Natural Resources is an international mining and natural resources company. It is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal.

The North American business unit is composed of six iron ore mines owned or managed in Michigan, Minnesota and Eastern Canada, and two coking coal mining complexes located in West Virginia and Alabama. The Asia Pacific business unit is composed of two iron ore mining complexes in Western Australia and a 45 percent economic interest in a coking and thermal coal mine in Queensland, Australia. The South American business unit includes a 30 percent interest in the Amapá Project, an iron ore project in the state of Amapá in Brazil.

Source: Beckley Register-Herald

Ennore Coke Begin Land Hunt For New Plant

Ennore Coke Limited, the Indian manufacturer of metallurgical coke, plans to scout for land for its proposed one million tonne per annum (mtpa) coke plant at Dhamara port in Orissa within three to four months.

The company needed 250-300 acres of land at Dhamara to set up a one mtpa coke plant at an investment of about Rs 1,400 crore. The plant was scheduled to be operational by the end of 2010.

“We would start scouting for land for our proposed coke plant at Dhamara port within three to four months. The company intends to acquire land for the project on its own”, said Ganesan Natarajan, president and chief executive officer, Ennore Coke Limited.

On acquiring an 90 per cent stake in Broughton Coal mines of Australia, Natarajan said, “We would conduct due diligence for the coal mines within a week. The company expects to close the deal at $10 million.”

Broughton coal mines of Australia are presently valued at about $12 million and they have an estimated reserve of 30 million tonnes of coking coal. Ennore Coke was looking to invest an additional $25-30 million on mining operations of these mines.

Ennore Coke had identified 3-4 coking coal properties in Australia for acquisition. It was also exploring the possibility of picking up stakes in coking coal assets in New Zealand.

Ennore Coke was aiming to pick up stakes in overseas coal mining assets as valuations of these properties were attractive in the aftermath of the economic downturn. Moreover, the company was aiming to achieve raw material security to cater to its expansion plans.

At present, the coking coal requirement of Ennore Coke stands at 7,20,000 tonnes per annum. The company’s coking coal requirement is set to go up significantly in the next couple of years as it is aiming to scale up capacity of its coke plant at Haldia (West Bengal) from the existing 1.5 lakh tonnes per annum to 3 lakh tonnes per annum.

Besides, the company’s proposed coke plant at Dhamara would have a coking coal requirement of 1.3 million tonnes per annum.

To cater to its growing raw material requirement, Ennore Coke aimed to import about four lakh tonnes of coking coal, mainly from Australia in 2009-10 out of which 50 per cent would be semi-soft coking coal and the remaining 50 per cent being premium hard coking coal.

Meanwhile, the company has successfully pushed coke into its batteries in its coke plant located in Haldia last week.

Commenting on the achievement, Natarajan said, “This is a proud moment for us and I would like to take the opportunity for thanking every member of the Ennore Coke family who have toiled ceaselessly to achieve this milestone.”

The successful pushing of coke at the Haldia plant is the first stage of the process of coke making which will culminate with the company attaining its full capacity of producing 130,000 mtpa of coke by the end of May this year. Ennore Coke will also co-generate 12 MW of power, which in turn will generate carbon credits and further add to the company’s bottom-line.

Source: Business Standard

China Raises Coking Coal Price

The Coking Industry Association of Hebei province in China has raised the ex-factory price of coke by CNY 50 to 100 per tonne to CNY 1,800 per tonne to CNY 1,850 per tonne. The rise is due to a lack of coking coal resources and rising production costs. Each enterprise can set their own prices accordingly.

The Coking Industry Association of Shandong province also raised its coke guiding price from 6 February. The price of first grade metallurgical coke in Shandong is now CNY 1,950 per tonne with that of second grade metallurgical coke at CNY 1,900 per tonne.

Source: MySteel.net