By at least one economic measure, the Great Recession is approaching the Great Depression in Duluth.
Shipping organizations reported Tuesday that iron ore shipments from the Twin Ports have declined by nearly two-thirds this season, hitting levels not seen since the 1930s.
Just over 1 million tons of ore have been shipped out of Duluth and Superior, Wis., so far this year, a drop of nearly one-half from a year ago, according to the Lake Carriers Association.
That's well below levels reached in the wake of the crash of 1929, according to the Duluth Seaway Port Authority.
The picture is even grimmer up the north shore of Lake Superior, where shipments out of Two Harbors and Silver Bay have declined even more precipitously.
The association reported another indication of the cratering economy: Throughout the Great Lakes, shipments for all commodities, other than coal, have slumped by more than one-third since last year. The slump in iron ore shipments led all other categories, according to the association.
The recession-battered market for iron and steel has been acutely painful on the Iron Range, where Minnesota's six taconite plants are or have been idle in recent months in short- or long-term closures.
The most recent blow to the beleaguered taconite industry came early this month when Cliffs Natural Resources Inc. announced it would keep Hibbing Taconite shut down until next April, keeping 700 employees out of work.
Source: Minneapolis Star Tribune
Wednesday, July 22, 2009
Newcrest Tungsten Discovery Is "World Class Find"
NEWCREST has put the wind up China's tungsten industry by revealing that its O'Callaghans tungsten discovery near the Telfer gold/copper mine in Western Australia is shaping up as a world-class find.
Managing director of Melbourne-based Newcrest Ian Smith said an initial resource estimate for O'Callaghans would be about 60 million tonnes. He did not give an indicative grade but said it was a deposit of "world significance".
China controls the world tungsten market through production dominance from mines in Jiangxi, Hunan and Yunnan. It may bid for O'Callaghans to maintain its hold.
Newcrest is open to exploiting the situation. Mr Smith said Newcrest had a team in China talking to "people who are very interested in O'Callaghans because China's companies control the tungsten market at the moment".
"But just as importantly, some of the companies to have shown intense interest have been from Japan and northern Europe," Mr Smith said.
While relishing the interest in the strategic discovery, Newcrest has yet to decide whether to hold on to O'Callaghans. "What we're confident of is that we're sitting on a pretty important and strategic resource. There is no shortage of people interested in what is … a world-class deposit outside of the control of the country that now dominates that whole industry," Mr Smith said.
He was speaking at the release of Newcrest's June-quarter/June-year production report. Gold production rose 9 per cent to 397,826 ounces in the June quarter compared with the preceding quarter. That took annual output to 1.63 million ounces for the June year, in line with previous company guidance that output would be 1.62 million ounces. Annual copper production was higher than guidance at 89,900 tonnes.
Newcrest shares closed down 57¢ at $30.39, in line with general share price weakness in the sector due to easing inflation concerns that have sent gold prices lower.
Source: The Age
Managing director of Melbourne-based Newcrest Ian Smith said an initial resource estimate for O'Callaghans would be about 60 million tonnes. He did not give an indicative grade but said it was a deposit of "world significance".
China controls the world tungsten market through production dominance from mines in Jiangxi, Hunan and Yunnan. It may bid for O'Callaghans to maintain its hold.
Newcrest is open to exploiting the situation. Mr Smith said Newcrest had a team in China talking to "people who are very interested in O'Callaghans because China's companies control the tungsten market at the moment".
"But just as importantly, some of the companies to have shown intense interest have been from Japan and northern Europe," Mr Smith said.
While relishing the interest in the strategic discovery, Newcrest has yet to decide whether to hold on to O'Callaghans. "What we're confident of is that we're sitting on a pretty important and strategic resource. There is no shortage of people interested in what is … a world-class deposit outside of the control of the country that now dominates that whole industry," Mr Smith said.
He was speaking at the release of Newcrest's June-quarter/June-year production report. Gold production rose 9 per cent to 397,826 ounces in the June quarter compared with the preceding quarter. That took annual output to 1.63 million ounces for the June year, in line with previous company guidance that output would be 1.62 million ounces. Annual copper production was higher than guidance at 89,900 tonnes.
Newcrest shares closed down 57¢ at $30.39, in line with general share price weakness in the sector due to easing inflation concerns that have sent gold prices lower.
Source: The Age
Mining Giants Submit Bids For PT Berau Coal
China's Huaneng Power and Indonesia's PT Indika Energy are among the companies that have submitted bids for a majority stake in Indonesian coal miner PT Berau Coal, according to sources, in a deal that could value Berau at more than $1 billion.
Thailand's top coal miner Banpu may also bid for the stake while mining giants Xstrata and Peabody Energy have previously expressed interest in the stake.
"We are just like the others, which have been approached by financial advisers and we are in the process of considering," Banpu chief executive Chanin Vongkusolkit told Reuters.
Sources said Berau -- Indonesia's fifth-largest coal miner -- has generated strong interest as it is rare for controlling stakes in Indonesian energy firms to be put on the market. The stake offers a steady supply of quality Indonesian thermal coal.
Berau, which has a 1,200 square km (460 sq mile) concession area in East Kalimantan province, produced 13.2 million tonnes of coal in 2008 and aims for production of 15 million tonnes this year.
Armadian Tritunggal -- an investment firm controlled by Indonesian businessman Rizal Risjad -- is selling its 51 percent controlling stake in Berau.
The sale is being run by Deutsche Bank, Bank of America's Merrill Lynch, and former Merrill banker Sheldon Trainor's PacBridge Capital Partners.
Armadian Tritunggal may elect to keep a portion of its controlling stake, a source had previously told Reuters.
"The asset will probably go to a strategic buyer either as a complete buy-out or a large minority stake," said a source familiar with the auction.
It was unclear whether Xstrata and Peabody Energy had submitted bids, which sources said were due a few weeks ago.
Berau is a joint venture between Tritunggal, Dutch firm dan Rognar Holding B.V. and Japanese firm Sojitz Corp, with Rognar and Sojitz owning 39 percent and 10 percent stakes.
The sale by Berau's biggest stakeholder could also trigger the sale of stakes by its minority shareholders. The total value of the company is expected to be worth more than $1 billion.
Berau is also being assessed for a possible initial public offering and the due diligence should be completed by the end of June, president director Bob Kamandanu told Reuters in May.
IPO plans will be included as part of any deal to sell the majority stake, sources said.
Further complicating the deal is an outstanding $300 million high-yield bond arranged by Merrill Lynch, sources have said.
Indika tapped Citigroup to advise on its bid, two of the sources said. Huaneng Power is being advised by Nomura, the sources said.
The sources declined to be named because they are not authorised to speak publicly about the auction.
Source: Reuters
Thailand's top coal miner Banpu may also bid for the stake while mining giants Xstrata and Peabody Energy have previously expressed interest in the stake.
"We are just like the others, which have been approached by financial advisers and we are in the process of considering," Banpu chief executive Chanin Vongkusolkit told Reuters.
Sources said Berau -- Indonesia's fifth-largest coal miner -- has generated strong interest as it is rare for controlling stakes in Indonesian energy firms to be put on the market. The stake offers a steady supply of quality Indonesian thermal coal.
Berau, which has a 1,200 square km (460 sq mile) concession area in East Kalimantan province, produced 13.2 million tonnes of coal in 2008 and aims for production of 15 million tonnes this year.
Armadian Tritunggal -- an investment firm controlled by Indonesian businessman Rizal Risjad -- is selling its 51 percent controlling stake in Berau.
The sale is being run by Deutsche Bank, Bank of America's Merrill Lynch, and former Merrill banker Sheldon Trainor's PacBridge Capital Partners.
Armadian Tritunggal may elect to keep a portion of its controlling stake, a source had previously told Reuters.
"The asset will probably go to a strategic buyer either as a complete buy-out or a large minority stake," said a source familiar with the auction.
It was unclear whether Xstrata and Peabody Energy had submitted bids, which sources said were due a few weeks ago.
Berau is a joint venture between Tritunggal, Dutch firm dan Rognar Holding B.V. and Japanese firm Sojitz Corp, with Rognar and Sojitz owning 39 percent and 10 percent stakes.
The sale by Berau's biggest stakeholder could also trigger the sale of stakes by its minority shareholders. The total value of the company is expected to be worth more than $1 billion.
Berau is also being assessed for a possible initial public offering and the due diligence should be completed by the end of June, president director Bob Kamandanu told Reuters in May.
IPO plans will be included as part of any deal to sell the majority stake, sources said.
Further complicating the deal is an outstanding $300 million high-yield bond arranged by Merrill Lynch, sources have said.
Indika tapped Citigroup to advise on its bid, two of the sources said. Huaneng Power is being advised by Nomura, the sources said.
The sources declined to be named because they are not authorised to speak publicly about the auction.
Source: Reuters
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
"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
Chinese Steel Prices Rise For 14th Straight Week
China's National Business Daily has reported that to July 20th the price of 25mm rebar was posted at CNY 4090 per tonne in Beijing, a hike of CNY 110 per tonne from last week and of CNY 370 per tonne from a month ago, hitting a record high for the year and pressing the average of CNY 4091 per tonne of last year. This rise, which began in mid-April, has lasted for fourteen weeks.
The rise was strongly driven by the government's 4 trillion yuan investment stimulation, but out of expectation is that the price is moving up so rapidly, even in such a traditional low season in July and approaches the average level of last year.
An official of a construction steel company said the recent price rise is mainly pushed directly by steelmakers' scaling up EXW prices.
Medium- and small-sized steelmakers specialising in construction steel raised prices tentatively in May. Large- and medium-sized makers like Baosteel, Baotou Steel and Hebei Iron and Steel Group, started launching price corrections for June deliveries further fuelling smaller mills to follow hot on their heels.
This round of price improvement is deeper than usual with a range of as high as CNY 100 per tonne each time and even beating CNY 500 per tonne for August delivery. The latest report with Mysteel.com shows that domestic supply and inventory of flat are staying at a high level. HR makers rate of operation has reached 90% and order prices for August deliveries are all above CNY 4000 per tonne.
The cost growth is considered to be the main cause for the steel price hike. The iron ore spot price has surged CNY 100 per tonne plus in a short time, affected by the deadlocked ore talk between Chinese steel makers and three global ore suppliers.
Insiders analysed that it is about time for the market to come back to a normal level taking account of the low season and the prolonged cycle for steel price rises.
Source: Steel Guru
The rise was strongly driven by the government's 4 trillion yuan investment stimulation, but out of expectation is that the price is moving up so rapidly, even in such a traditional low season in July and approaches the average level of last year.
An official of a construction steel company said the recent price rise is mainly pushed directly by steelmakers' scaling up EXW prices.
Medium- and small-sized steelmakers specialising in construction steel raised prices tentatively in May. Large- and medium-sized makers like Baosteel, Baotou Steel and Hebei Iron and Steel Group, started launching price corrections for June deliveries further fuelling smaller mills to follow hot on their heels.
This round of price improvement is deeper than usual with a range of as high as CNY 100 per tonne each time and even beating CNY 500 per tonne for August delivery. The latest report with Mysteel.com shows that domestic supply and inventory of flat are staying at a high level. HR makers rate of operation has reached 90% and order prices for August deliveries are all above CNY 4000 per tonne.
The cost growth is considered to be the main cause for the steel price hike. The iron ore spot price has surged CNY 100 per tonne plus in a short time, affected by the deadlocked ore talk between Chinese steel makers and three global ore suppliers.
Insiders analysed that it is about time for the market to come back to a normal level taking account of the low season and the prolonged cycle for steel price rises.
Source: Steel Guru
Tuesday, July 21, 2009
Pike River Coal Sells Coking Coal To Japan At $128 A Tonne
New Zealand miner Pike River Coal said on Tuesday it had sold its premium hard coking coal at $128 a tonne for the current Japanese fiscal year through to March 2010. The company said there had been some production issues at the mine and the first shipment would leave for Japan about mid-November 2009.
Pike River said that the price met its expectations, and prices should rise in the following year based on increased demand from China.
Source: Reuters
Pike River said that the price met its expectations, and prices should rise in the following year based on increased demand from China.
Source: Reuters
Wisco To Invest $186 Million In South Australia Iron Ore Projects
China's third-largest steel group is to invest $186 million in iron ore projects in South Australia.
An agreement has been signed between Wuhan Iron and Steel and Adelaide-based Centrex Metals and is subject to government approval.
The joint venture is expected to lead to development of two iron ore mines over the next seven years, near Port Lincoln on Eyre Peninsula.
Centrex Metals says the deal is significant because tensions in the global iron ore market are straining negotiations.
Source: ABC
An agreement has been signed between Wuhan Iron and Steel and Adelaide-based Centrex Metals and is subject to government approval.
The joint venture is expected to lead to development of two iron ore mines over the next seven years, near Port Lincoln on Eyre Peninsula.
Centrex Metals says the deal is significant because tensions in the global iron ore market are straining negotiations.
Source: ABC
Gujarat NRE Takes Profit Hit
Gujarat NRE Coke has taken a hit on its bottom line for the first quarter ended June 2009, with net profit touching Rs. 3.64 crore against Rs. 94.40 crore in the same period a year ago. Net sales during the quarter were Rs. 310 crore against Rs. 377.60 crore.
Company sources attributed the dip in profit to the dynamics in the steel industry which has in turn affected the coke industry. “Our results had been affected since the December quarter. However, we are now coming out of the downturn,” a company official told The Hindu. The company had posted a Rs. 103.20-crore loss in the previous quarter, a company release said, adding that the results showed that coke demand in India had been on the rise.
Though the current recession had its impact on the consumption of coke in the global market, the domestic scenario has been improving due to increased consumption levels, which augurs well for merchant-manufacturers of met coke in India.
As company Chairman and Managing Director Arun Kumar Jagatramka says, “Demand for coke has been buoyant in India in the first half of 2009. Shortages of coking coal are adding to the pressure in the market. We plan to increase our capacity further by setting two greenfield plants of one million tonnes each in Andhra Pradesh and Gujarat to take advantage of this ever yawning gap of demand and supply of coke in India.”
Source: The Hindu
Company sources attributed the dip in profit to the dynamics in the steel industry which has in turn affected the coke industry. “Our results had been affected since the December quarter. However, we are now coming out of the downturn,” a company official told The Hindu. The company had posted a Rs. 103.20-crore loss in the previous quarter, a company release said, adding that the results showed that coke demand in India had been on the rise.
Though the current recession had its impact on the consumption of coke in the global market, the domestic scenario has been improving due to increased consumption levels, which augurs well for merchant-manufacturers of met coke in India.
As company Chairman and Managing Director Arun Kumar Jagatramka says, “Demand for coke has been buoyant in India in the first half of 2009. Shortages of coking coal are adding to the pressure in the market. We plan to increase our capacity further by setting two greenfield plants of one million tonnes each in Andhra Pradesh and Gujarat to take advantage of this ever yawning gap of demand and supply of coke in India.”
Source: The Hindu
Monday, July 20, 2009
World Steel Fall Slows Down
The recent fall in world steel output slowed in June, when production fell 16 percent from output in the same month last year to 99.8 million tonnes, with China showing a gain, the World Steel Association reported on Monday.
Production on a yearly basis had declined 21 percent in May, 23.6 percent in April and 23.5 percent in March.
The association, which assesses data from 66 countries, said output in the first half of the year was down 21.3 percent from the same period of 2008.
In Asia, Chinese steel production rose 6.0 percent to 49.4 million tonnes from a year earlier while output fell 33.6 percent in Japan to 6.9 million tonnes and 14.4 percent to 4.0 million tonnes in South Korea.
The United States produced 4.4 million tonnes of steel in June 2009, down 46.9 percent from June 2008, while in Brazil output fell 33.9 percent to 1.9 million tonnes.
Among big producers in Europe, Germany turned out 2.5 million tonnes, a fall of 41.1 percent.
In Russia steel production in June came to 4.9 million tonnes, down 22.1 percent from a year earlier, according to the report.
Source: AFP
Production on a yearly basis had declined 21 percent in May, 23.6 percent in April and 23.5 percent in March.
The association, which assesses data from 66 countries, said output in the first half of the year was down 21.3 percent from the same period of 2008.
In Asia, Chinese steel production rose 6.0 percent to 49.4 million tonnes from a year earlier while output fell 33.6 percent in Japan to 6.9 million tonnes and 14.4 percent to 4.0 million tonnes in South Korea.
The United States produced 4.4 million tonnes of steel in June 2009, down 46.9 percent from June 2008, while in Brazil output fell 33.9 percent to 1.9 million tonnes.
Among big producers in Europe, Germany turned out 2.5 million tonnes, a fall of 41.1 percent.
In Russia steel production in June came to 4.9 million tonnes, down 22.1 percent from a year earlier, according to the report.
Source: AFP
Vala Agrees 28 Per Cent Price Cut With Lucchini
Brazilian miner Vale said on Monday it had closed an iron ore price agreement with Italy's major steelmaker Lucchini, cutting prices by 28.2 percent from 2008 levels.
Lucchini is controlled by Russia's Severstal.
Vale, the world's largest producer of iron ore, on Friday announced price agreements with Italian and Turkish steel mills that cut iron prices by similar levels.
Iron prices are set each year through a benchmarking system based on bilateral talks between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished this year's price talks with Chinese steel mills following months of negotiations and the detention of Rio mining executives that has sparked diplomatic tension between China and Australia.
Source: Reuters
Lucchini is controlled by Russia's Severstal.
Vale, the world's largest producer of iron ore, on Friday announced price agreements with Italian and Turkish steel mills that cut iron prices by similar levels.
Iron prices are set each year through a benchmarking system based on bilateral talks between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished this year's price talks with Chinese steel mills following months of negotiations and the detention of Rio mining executives that has sparked diplomatic tension between China and Australia.
Source: Reuters
Illegal Manganese Mining Resumes In Ha Tinh Province
Illegal manganese mining has resumed in Ha Tinh Province’s Can Loc District after a period of inactivity since the end of June.
The ore is transported and sold in Nghe An Province at VND300,000-500,000 a cubic metre, depending on quality.
Nguyen Dinh Lan, director of Ha Tinh Manganese Minerals Co., told SGGP that his company has set up patrols but failed to stop the illegal mining since the miners are aggressive and usually go around in large groups.
They steal 30-40 tons of manganese daily, he said.
“We have reported it to the commune People’s Committee and police but it continues,” he complained.
Manganese ore reportedly fetches a good price across the border in Laos which has set off a mining frenzy in the area.
Source: Saigon GP Daily
The ore is transported and sold in Nghe An Province at VND300,000-500,000 a cubic metre, depending on quality.
Nguyen Dinh Lan, director of Ha Tinh Manganese Minerals Co., told SGGP that his company has set up patrols but failed to stop the illegal mining since the miners are aggressive and usually go around in large groups.
They steal 30-40 tons of manganese daily, he said.
“We have reported it to the commune People’s Committee and police but it continues,” he complained.
Manganese ore reportedly fetches a good price across the border in Laos which has set off a mining frenzy in the area.
Source: Saigon GP Daily
Jindal Buys Turkish Chrome Ore Assets
It is reported that Indian steelmaker JSL has acquired chrome ore assets in Turkey. The transaction will help JSL meet its raw material requirements and to control input costs.
The acquired mines, which cost the company about USD 6 million, will meet captive chrome ore requirements of the proposed stainless plant in Orissa and also serve the demand of Asian, European and American markets.
The total chrome reserves that JSL has acquired from individual investors, having interests in mineral resources at six to seven different locations in Turkey, could be over 2 million tonnes.
Source: Steel Guru
The acquired mines, which cost the company about USD 6 million, will meet captive chrome ore requirements of the proposed stainless plant in Orissa and also serve the demand of Asian, European and American markets.
The total chrome reserves that JSL has acquired from individual investors, having interests in mineral resources at six to seven different locations in Turkey, could be over 2 million tonnes.
Source: Steel Guru
Iron Ore Price Rises Above $90 A Tonne
Cash prices for iron ore delivered to China, the world’s biggest buyer, traded above $90 a metric ton for the first time this year amid rising imports by the Asian nation.
Ore for immediate delivery rose 4.6 percent to $91 a metric ton in the week ended July 17, according to Metal Bulletin prices for 63.5 percent ore. That’s the highest since Oct. 10, 2008. The price for 62 percent ore rose 1.4 percent to $82.80 a ton, according to Steel Business Briefing prices.
Source: Bloomberg
Ore for immediate delivery rose 4.6 percent to $91 a metric ton in the week ended July 17, according to Metal Bulletin prices for 63.5 percent ore. That’s the highest since Oct. 10, 2008. The price for 62 percent ore rose 1.4 percent to $82.80 a ton, according to Steel Business Briefing prices.
Source: Bloomberg
Indian Steel Ministry Wants Quicker Iron Ore Licence Allocations
Lamenting that undue delays in allotting captive iron ore mines to steel companies were dissuading them from going full throttle on capacity expansion, the Steel Ministry has asked the Mines Ministry to adequately equip the empowered committee to accord prior approval for mineral concessions on behalf of the Central government.
In a letter, the Steel Ministry told the Mines Ministry that it is highly imperative that iron ore linkage in the form of captive mines be made available to the steel plants while reminding that “a number of projects in the steel sector are getting delayed due to non-allotment of mines to them either due to dilatory tendencies of the state governments or due to other reasons.” It argued that the Coordination-cum-Empowered Committee, set up by the mines ministry to act as a single window clearance system to monitor and minimise delays in the grant of various approvals for mineral concessions, “has not been adequately empowered to accord prior approval on behalf of the Centre for doing so.”
Source: Indian Express
In a letter, the Steel Ministry told the Mines Ministry that it is highly imperative that iron ore linkage in the form of captive mines be made available to the steel plants while reminding that “a number of projects in the steel sector are getting delayed due to non-allotment of mines to them either due to dilatory tendencies of the state governments or due to other reasons.” It argued that the Coordination-cum-Empowered Committee, set up by the mines ministry to act as a single window clearance system to monitor and minimise delays in the grant of various approvals for mineral concessions, “has not been adequately empowered to accord prior approval on behalf of the Centre for doing so.”
Source: Indian Express
Sunday, July 19, 2009
Indian Government May Discuss Manganese Divestment Plan
India's Steel Minister Virbhadra Singh may discuss on Monday plans on divesting the government's stake in Manganese Ore (India) Ltd at the performance review meeting of public sector companies.
"The work on listing of MOIL has been going on for long now. Now the finance ministry has asked us to expedite the disinvestment process in the company. The (steel) minister is likely to take a call on disinvestment in MOIL in tomorrow's meeting," a senior steel ministry official said.
The minister will also review the performance of ICVL, a SPV formed by five leading PSUs like Coal India, SAIL to acquire mining property abroad, he said.
The finance ministry has asked the steel ministry to work on divesting stake in MOIL, NMDC and KIOCL, he said. On the ailing KIOCL, the ministry could go slow till it is acquired by NMDC, he added.
Explaining further, the official said the government may divest a minimum of 8.3 per cent stake in already listed iron ore miner National Mineral Development Corporation, which will fetch the government over Rs 10,000 crore.
In Kudremukh Iron Ore Company Ltd (KIOCL), which is also listed, the government may divest about 9 per cent stake and in Manganese Ore India Ltd (MOIL) about 10 per cent stake may be sold.
The disinvestment in KIOCL and MOIL may fetch the government together about Rs 1,000 crore.
For listed entities, the government may consider follow-on public issue, he added.
Source: The Hindu
"The work on listing of MOIL has been going on for long now. Now the finance ministry has asked us to expedite the disinvestment process in the company. The (steel) minister is likely to take a call on disinvestment in MOIL in tomorrow's meeting," a senior steel ministry official said.
The minister will also review the performance of ICVL, a SPV formed by five leading PSUs like Coal India, SAIL to acquire mining property abroad, he said.
The finance ministry has asked the steel ministry to work on divesting stake in MOIL, NMDC and KIOCL, he said. On the ailing KIOCL, the ministry could go slow till it is acquired by NMDC, he added.
Explaining further, the official said the government may divest a minimum of 8.3 per cent stake in already listed iron ore miner National Mineral Development Corporation, which will fetch the government over Rs 10,000 crore.
In Kudremukh Iron Ore Company Ltd (KIOCL), which is also listed, the government may divest about 9 per cent stake and in Manganese Ore India Ltd (MOIL) about 10 per cent stake may be sold.
The disinvestment in KIOCL and MOIL may fetch the government together about Rs 1,000 crore.
For listed entities, the government may consider follow-on public issue, he added.
Source: The Hindu
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