Viet Nam exported more than 13.5 million tonnes of coal in the first seven months of this year, equal to the same period last year.
Coal for both domestic consumption and export earned Vinacomin more than VND20 trillion.
Buyers were primarily China, Japan, Thailand, India, Malaysia, South Korea and Europe, said Tran Xuan Hoa, general director of the Viet Nam National Coal and Mineral Industries Group (Vinacomin).
Local consumption was 10.98 million tonnes, also equal to the same period last year.
Coal for both domestic consumption and export earned Vinacomin more than VND20 trillion (US$1.1 billion), of which VND12 trillion ($667 million) was from exports, Hoa said.
Vinacomin plans to export 3 million tonnes of coal this year.
Despite its estimated 42 billion tonnes of coal reserves, the company is struggling to cater for steeply rising domestic energy demand of 17-20 per cent a year and plans to lower its export target.
Vinacomin was expected to export 10.5 million tonnes of coal to China for the second half of this year and the first quarter of next year, said Pham Minh Chau, head of Vinacomin's export department.
The coal utility would sell 2.5 million tonnes of fine anthracite coal to China through the Van Gia transhipment area in the northeastern province of Quang Ninh by directly signing contracts with Chinese companies. Coal could be exchanged for goods under these contracts, he said.
More than 336,000 tonnes of coal was sold through the Van Gia transhipment area from mid-May to mid-July at a price of $38 per tonne, representing 93.92 per cent of the volume signed with Chinese companies.
Of the figure, Hon Gai fine anthracite coal 11C accounted for 160,000 tonnes, the official added.
The Hon Gai fine anthracite coal 11A sold under contracts signed between the two governments was sold for $46 per tonne last June, Chau said.
Direct coal trading between Vietnamese and Chinese companies resumed last March after it was banned in May 2007 due to rampant coal smuggling in Quang Ninh.
Within a day in May 2007, 104 ships were seized in Van Gia for illegal coal transport because domestic prices were lower than international ones.
Chinese buyers were small companies in Guangxi province's Dongxing, the only port linking China and Viet Nam by both land and water, Chau said.
Now demand for coal is not as high as in early 2008 due to the global economic crisis, Chau said.
China, the world's largest coal producer and consumer, is expected to be a net coal importer for the first time in 20 years, as low prices in the international market and sluggish demand discourage exporters, according to analysts.
Several analysts have forecast that Chinese domestic coal prices, now hovering around $89 a tonne, could rise in the coming months on the back of summer demand and economic growth. China's power output rose on the year in June for the first time since last October, thanks to a pick-up in the economy and rising temperatures.
Supply has also been improving, as some of China's small coal mines are slowly returning to production, months after being shut down for strict safety inspections ordered by the central government.
Source: Vietnam Net
Monday, August 10, 2009
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
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
Rizhao Aims For Less Reliance On Iron Ore
One of China's leading ports will restructure its operations to become less reliant on iron ore imports that have slumped in recent months.
Rizhao Port Group, which operates the country's leading iron ore port, has been hit hard by the protracted wrangling between China and the world's major iron producers over the price of the raw material.
These events culminated in the so-called Rio Tinto Affair last month, when four executives from the Australian mining company were arrested in China.
The port currently relies on iron ore imports for two-thirds of its business, but the volume delivery is set to dive by 50 percent next month as steel producers sit on stocks waiting for the price issue to be resolved.
Zang Dongsheng, vice general manager at Rizhao Port Group, said the Shandong port operation will be switching its focus to be less exposed to the currently volatile iron ore market.
He said that by 2015, iron ore will make up a third of the delivery capacity, with the port moving emphasis to its oil and container businesses.
"It is to give a broader base to the port so it is less dependent on iron ore. It is right to adjust the structure, because if you are dependent on one product such as iron ore and the delivery of it declines sharply you will suffer a lot. What you need is a very good balance," Zang said.
The port company reported late last month that its iron ore imports were set to fall by up to 50 percent in September, compared to the average of the first six months of this year. This month they are expected to be 40 percent down.
This dramatic collapse was blamed on the failure to reach agreement on a contract price between the major Chinese steel producers and the world's major iron ore producers: the Australian mining group Rio Tinto, the British-Australian giant BHP Billiton and the Brazilian company Vale.
As part of its restructuring plan, the port group will build two new crude oil wharfs with a capacity of 300,000 tons, the first of which will be ready next year. The existing wharf has a capacity of 100,000 tons. It is also going to invest heavily in its business of loading and unloading containers, increasing the number of the standard boxes it handles more than fivefold from its current 900,000 to 5 million boxes in five years.
The port will still be investing in its iron ore facilities, investing 1.6 billion yuan in a new iron ore berth at its Lanshan Port. The port plans to complete work on the project next year.
SourcE: China Daily
Rizhao Port Group, which operates the country's leading iron ore port, has been hit hard by the protracted wrangling between China and the world's major iron producers over the price of the raw material.
These events culminated in the so-called Rio Tinto Affair last month, when four executives from the Australian mining company were arrested in China.
The port currently relies on iron ore imports for two-thirds of its business, but the volume delivery is set to dive by 50 percent next month as steel producers sit on stocks waiting for the price issue to be resolved.
Zang Dongsheng, vice general manager at Rizhao Port Group, said the Shandong port operation will be switching its focus to be less exposed to the currently volatile iron ore market.
He said that by 2015, iron ore will make up a third of the delivery capacity, with the port moving emphasis to its oil and container businesses.
"It is to give a broader base to the port so it is less dependent on iron ore. It is right to adjust the structure, because if you are dependent on one product such as iron ore and the delivery of it declines sharply you will suffer a lot. What you need is a very good balance," Zang said.
The port company reported late last month that its iron ore imports were set to fall by up to 50 percent in September, compared to the average of the first six months of this year. This month they are expected to be 40 percent down.
This dramatic collapse was blamed on the failure to reach agreement on a contract price between the major Chinese steel producers and the world's major iron ore producers: the Australian mining group Rio Tinto, the British-Australian giant BHP Billiton and the Brazilian company Vale.
As part of its restructuring plan, the port group will build two new crude oil wharfs with a capacity of 300,000 tons, the first of which will be ready next year. The existing wharf has a capacity of 100,000 tons. It is also going to invest heavily in its business of loading and unloading containers, increasing the number of the standard boxes it handles more than fivefold from its current 900,000 to 5 million boxes in five years.
The port will still be investing in its iron ore facilities, investing 1.6 billion yuan in a new iron ore berth at its Lanshan Port. The port plans to complete work on the project next year.
SourcE: China Daily
Hyundai Steel To Continue Buying Iron Ore From Majors
HYUNDAI Steel will continue to purchase iron ore and coking coal from its existing three major suppliers for the new blast furnace it aims to build after 2012.
“We are planning to sign long-term contracts with our current suppliers for the operation of the third blast furnace,” Oh Myung-suk, executive vice president of Hyundai Steel’s integrated steel project division, said.
For the No.1 and No.2 blast furnaces, Hyundai has secured 98 per cent of its total iron ore demand and 84 per cent of its overall coal needs in five to 10-year contracts with Brazil’s Vale, BHP Billiton and Rio Tinto .
The first delivery of iron ore will arrive on August 23 from Vale and the coal will arrive on September 15 from BHP and Rio, said the country’s second-largest steelmaker by sales after Posco.
The company, which needs 13.6 million tonnes of iron ore and 6.5 million tonnes of coal per year for the two furnaces, will also buy the raw materials in the spot market over the period, Mr Oh said.
As for planned investment in the new No. 3 furnace, he said it will take less than $US2.4 billion ($2.9 billion).
Asked if Hyundai Steel has any plan to strengthen or diversify its business through acquisitions, Mr Oh said “we have no interest in acquiring companies and instead will focus on completing the (8-million-tonne-a-year) integrated steel mill (by the end of 2010).”
The No. 1 and No. 2 blast furnaces - whose construction reached 80 per cent as of Friday - will have an annual output capacity of 4 million tonnes each, with the third furnace also expected to have an annual capacity of 4 million tonnes.
To meet high domestic demand for shipbuilding plates, Hyundai said it will start operation of a 1.5 million-a-year thick steel plant in December.
The company may double the plate plant’s capacity when operations of the first two furnaces stabilise as planned by 2012, Mr Oh said.
South Korea, which houses the world’s top three shipbuilders, imported 7.2 million tonnes of shipbuilding plates last year and Posco and Dongkuk Steel Mill supplied 7 million tonnes, according to Hyundai Steel.
“We will focus on supplying automotive steel to our affiliates Hyundai Motor and Kia Motors but will also raise the shipbuilding plate business as another income source,” said the executive vice president.
“We will be able to supply thick steel plates at the quickest time to companies such as Hyundai Heavy, Hyundai Mipo and Hyundai Samho Heavy compared with other local suppliers.”
SourcE: Melbourne Herald Sun
“We are planning to sign long-term contracts with our current suppliers for the operation of the third blast furnace,” Oh Myung-suk, executive vice president of Hyundai Steel’s integrated steel project division, said.
For the No.1 and No.2 blast furnaces, Hyundai has secured 98 per cent of its total iron ore demand and 84 per cent of its overall coal needs in five to 10-year contracts with Brazil’s Vale, BHP Billiton and Rio Tinto .
The first delivery of iron ore will arrive on August 23 from Vale and the coal will arrive on September 15 from BHP and Rio, said the country’s second-largest steelmaker by sales after Posco.
The company, which needs 13.6 million tonnes of iron ore and 6.5 million tonnes of coal per year for the two furnaces, will also buy the raw materials in the spot market over the period, Mr Oh said.
As for planned investment in the new No. 3 furnace, he said it will take less than $US2.4 billion ($2.9 billion).
Asked if Hyundai Steel has any plan to strengthen or diversify its business through acquisitions, Mr Oh said “we have no interest in acquiring companies and instead will focus on completing the (8-million-tonne-a-year) integrated steel mill (by the end of 2010).”
The No. 1 and No. 2 blast furnaces - whose construction reached 80 per cent as of Friday - will have an annual output capacity of 4 million tonnes each, with the third furnace also expected to have an annual capacity of 4 million tonnes.
To meet high domestic demand for shipbuilding plates, Hyundai said it will start operation of a 1.5 million-a-year thick steel plant in December.
The company may double the plate plant’s capacity when operations of the first two furnaces stabilise as planned by 2012, Mr Oh said.
South Korea, which houses the world’s top three shipbuilders, imported 7.2 million tonnes of shipbuilding plates last year and Posco and Dongkuk Steel Mill supplied 7 million tonnes, according to Hyundai Steel.
“We will focus on supplying automotive steel to our affiliates Hyundai Motor and Kia Motors but will also raise the shipbuilding plate business as another income source,” said the executive vice president.
“We will be able to supply thick steel plates at the quickest time to companies such as Hyundai Heavy, Hyundai Mipo and Hyundai Samho Heavy compared with other local suppliers.”
SourcE: Melbourne Herald Sun
Sunday, August 9, 2009
China Claims Rio Overcharged By $100 Billion
A watchdog group for China's Communist Party has accused Anglo-Australian mining company Rio Tinto Plc of overcharging Chinese steelmakers by $100 billion for its iron ore over six years, according to a media report Sunday.
The accusations were made in reports published on a Chinese-language Website called China Secret Protect Online, which claims to be affiliated with the Communist Party's State Secrets Bureau, The Wall Street Journal reported in its online edition.
The Website's reports said Rio Tinto, the Anglo-Australian mining giant, used deceptive tactics to obtain information about the Chinese steel industry over a six-year period, resulting in Chinese steelmakers being overcharged about $100 billion for iron ore.
The reports claimed the Chinese economy has been seriously damaged by the company's practices.
The Chinese monetary claim varies considerably from what the company has reported to have taken in from its iron ore business, of which China is its largest client. In its 2008 annual report, Rio Tinto reported revenues of $16.5 billion from the unit, according to the Journal.
Last month, Chinese authorities detained four Rio Tinto employees on suspicion of stealing state secrets. The employees haven't been formally charged.
The Chinese Website reports could be a harbinger of how Chinese authorities might proceed with a case against the employees, The Journal said.
On July 17, Rio Tinto issued a statement denying any wrongdoing by the employees.
The Journal said Sunday that a Rio Tinto spokesman declined to comment on the Chinese Website reports.
Source: Marketwatch
The accusations were made in reports published on a Chinese-language Website called China Secret Protect Online, which claims to be affiliated with the Communist Party's State Secrets Bureau, The Wall Street Journal reported in its online edition.
The Website's reports said Rio Tinto, the Anglo-Australian mining giant, used deceptive tactics to obtain information about the Chinese steel industry over a six-year period, resulting in Chinese steelmakers being overcharged about $100 billion for iron ore.
The reports claimed the Chinese economy has been seriously damaged by the company's practices.
The Chinese monetary claim varies considerably from what the company has reported to have taken in from its iron ore business, of which China is its largest client. In its 2008 annual report, Rio Tinto reported revenues of $16.5 billion from the unit, according to the Journal.
Last month, Chinese authorities detained four Rio Tinto employees on suspicion of stealing state secrets. The employees haven't been formally charged.
The Chinese Website reports could be a harbinger of how Chinese authorities might proceed with a case against the employees, The Journal said.
On July 17, Rio Tinto issued a statement denying any wrongdoing by the employees.
The Journal said Sunday that a Rio Tinto spokesman declined to comment on the Chinese Website reports.
Source: Marketwatch
China Looks Elsewhere For Iron Ore Deals
The China Iron and Steel Association is seeking to sign long-term contracts with iron ore suppliers in India, South Africa and Vietnam as annual price negotiations stall, the 21st Century Business Herald reported.
China should step up cooperation with miners in those countries to secure alternatives to Australian and Brazilian ore, the newspaper reported, citing Shan Shanghua, general secretary of the association.
Atlas Iron Ltd., an Australian iron ore producer, has agreed to sell ore at prices that would adjust to spot rates, the report said, citing Managing Director David Flanagan.
Source: Bloomberg
China should step up cooperation with miners in those countries to secure alternatives to Australian and Brazilian ore, the newspaper reported, citing Shan Shanghua, general secretary of the association.
Atlas Iron Ltd., an Australian iron ore producer, has agreed to sell ore at prices that would adjust to spot rates, the report said, citing Managing Director David Flanagan.
Source: Bloomberg
Caledon Recieves Essar Offer
Australian coking coal producer Caledon Resources Plc confirmed on Friday that it received approaches from India's Essar Minerals Ltd and other parties which may lead to a possible cash offer.
India's Telegraph newspaper on Wednesday reported that the country's energy-to-steel conglomerate, Essar Group, was in advanced talks to buy Caledon for up to $1 billion.
Caledon, which makes coking coal used in steelmaking, did not disclose further details, such as a possible offer price, on Friday.
Shares in Caledon closed at 59 pence in London on Thursday, valuing it at about 114 million pounds ($194 million).
The coal producer was said to be in advanced takeover talks with two possible buyers from China and India, a person familiar with the matter said on July 10.
Source: Reuters
India's Telegraph newspaper on Wednesday reported that the country's energy-to-steel conglomerate, Essar Group, was in advanced talks to buy Caledon for up to $1 billion.
Caledon, which makes coking coal used in steelmaking, did not disclose further details, such as a possible offer price, on Friday.
Shares in Caledon closed at 59 pence in London on Thursday, valuing it at about 114 million pounds ($194 million).
The coal producer was said to be in advanced takeover talks with two possible buyers from China and India, a person familiar with the matter said on July 10.
Source: Reuters
Saturday, August 8, 2009
$65 Million Manganese Smelter Planned For Indonesia
Two regional governments in East Nusa Tenggara (NTT) province have signed an agreement with consortium Mangan JSK International Co. Ltd and PT AGB Mining, to establish a Rp 650 billion (US$65.5 million) manganese smelter.
An email statement from the Energy and Mineral Resources Ministry said the NTT provincial government and the Kupang regency government had signed the agreement on Wednesday.
"The smelter will produce Ferro Manganese, Silicon Manganese and Ferro Nickel Chrome, among others," the statement said.
The products can be used for steel, batteries, ceramics and the production of chemicals. The plan will cover activities in surrounding regencies with a volume of about 1,000 tons a month, and a smelter construction with an installed capacity of 60,000 tons a year.
The Mangan consortium includes local and foreign companies: PT. AGB Mining, PT. Pusaka Pertambangan Mina, PT. Berkah Kencana Sakti, CV. Jasindo Utama and South Korea's J.S.K. International Co. Ltd
Source: Jakarta Post
An email statement from the Energy and Mineral Resources Ministry said the NTT provincial government and the Kupang regency government had signed the agreement on Wednesday.
"The smelter will produce Ferro Manganese, Silicon Manganese and Ferro Nickel Chrome, among others," the statement said.
The products can be used for steel, batteries, ceramics and the production of chemicals. The plan will cover activities in surrounding regencies with a volume of about 1,000 tons a month, and a smelter construction with an installed capacity of 60,000 tons a year.
The Mangan consortium includes local and foreign companies: PT. AGB Mining, PT. Pusaka Pertambangan Mina, PT. Berkah Kencana Sakti, CV. Jasindo Utama and South Korea's J.S.K. International Co. Ltd
Source: Jakarta Post
China Steel Prices To "Rise Moderately" In 2010
According to Ms Xie Qihua former chairwoman of Baosteel that Chinese steel production is very likely to break 500 million tonnes this year benefited from the increasing order books from auto and ship sectors and steel price would rise moderately next year.
Ms Xie is upbeat about future steel market due to the CNY 4 trillion governmental economic rescue packages. She said that "Steel price would hold the uptrend next year, though not so hectic as what happened last year. She also concerned about future price bubbles.”
Domestic steel demand has nosed up substantially since the second quarter especially for auto sheet. This coupled with the infrastructure-led stimulus plans sent monthly steel production in June and July higher than the same period of last year.
Ms Xie said iron ore imports surged 29% in the H1 amid rising domestic ore output. However imports in the H2 might decrease.
SourcE: Steel Guru
Ms Xie is upbeat about future steel market due to the CNY 4 trillion governmental economic rescue packages. She said that "Steel price would hold the uptrend next year, though not so hectic as what happened last year. She also concerned about future price bubbles.”
Domestic steel demand has nosed up substantially since the second quarter especially for auto sheet. This coupled with the infrastructure-led stimulus plans sent monthly steel production in June and July higher than the same period of last year.
Ms Xie said iron ore imports surged 29% in the H1 amid rising domestic ore output. However imports in the H2 might decrease.
SourcE: Steel Guru
Baltic Dry Index Has Worst Week Since October
The Baltic Dry Index, a measure of shipping costs for commodities, had its worst week since October as Chinese demand for shipments of coal and iron ore slowed.
The index tracking transportation costs on international trade routes today slid 135 points, or 4.6 percent, to 2,772 points, according to the Baltic Exchange. That took its weekly drop to 17 percent, the most since the end of October.
“The Chinese have backed off and it’s starting to show in the number of shipments this month,” Gavin Durrell, a Cape Town-based official at Island View Shipping SA, Africa’s biggest commodities shipping line, said by phone today. “Iron ore and coal seem to be slowing down.”
China’s record coal and iron ore imports in the first half helped the index to advance as much as fivefold this year, reversing some of the record 92 percent collapse in 2008. Demand rose after the country’s government announced a 4 trillion yuan ($586 billion) stimulus package.
Daily rental rates for every class of ship tracked by the bourse declined today, led by a 5.6 percent slump to $20,880 for panamaxes, ships designed to navigate the Panama Canal.
Capesizes, ships most commonly used to haul about 170,000 metric tons of iron ore around South Africa’s Cape of Good Hope or Chile’s Cape Horn, lost 5.2 percent to $45,428 a day. Smaller supramaxes fell 5 percent to $19,242 a day and handysize ships lost 2 percent to $12,051 a day.
Rates are declining as Chinese steelmakers delay imports while they negotiate annual iron ore prices with producers such as Rio Tinto Group, BHP Billiton Ltd. and Vale SA, Durrell said. “I don’t think they will come back until they agree,” he said.
The drop reflects a wider slide in demand for raw materials that will likely push prices for metals, commodities and energy lower, Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt, said by phone yesterday.
The Baltic Dry Index has slumped 35 percent from this year’s high on June 3. The Standard & Poor’s GSCI Index of 24 commodities has climbed 7 percent over the same period.
Derivatives betting on the Baltic Exchange’s future assessments fell for a third day, indicating the declining spot market is causing traders’ future expectations to deteriorate.
October-to-December forward freight agreements, or FFAs, for capesizes lost 4.7 percent to $36,750 a day, according to prices from Imarex ASA, a broker of the accords. That implies traders expect the market to drop 19 percent by year-end.
Panamax contracts fell 1 percent to $17,625 a day, implying a 16 percent decline.
Source: Bloomberg
The index tracking transportation costs on international trade routes today slid 135 points, or 4.6 percent, to 2,772 points, according to the Baltic Exchange. That took its weekly drop to 17 percent, the most since the end of October.
“The Chinese have backed off and it’s starting to show in the number of shipments this month,” Gavin Durrell, a Cape Town-based official at Island View Shipping SA, Africa’s biggest commodities shipping line, said by phone today. “Iron ore and coal seem to be slowing down.”
China’s record coal and iron ore imports in the first half helped the index to advance as much as fivefold this year, reversing some of the record 92 percent collapse in 2008. Demand rose after the country’s government announced a 4 trillion yuan ($586 billion) stimulus package.
Daily rental rates for every class of ship tracked by the bourse declined today, led by a 5.6 percent slump to $20,880 for panamaxes, ships designed to navigate the Panama Canal.
Capesizes, ships most commonly used to haul about 170,000 metric tons of iron ore around South Africa’s Cape of Good Hope or Chile’s Cape Horn, lost 5.2 percent to $45,428 a day. Smaller supramaxes fell 5 percent to $19,242 a day and handysize ships lost 2 percent to $12,051 a day.
Rates are declining as Chinese steelmakers delay imports while they negotiate annual iron ore prices with producers such as Rio Tinto Group, BHP Billiton Ltd. and Vale SA, Durrell said. “I don’t think they will come back until they agree,” he said.
The drop reflects a wider slide in demand for raw materials that will likely push prices for metals, commodities and energy lower, Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt, said by phone yesterday.
The Baltic Dry Index has slumped 35 percent from this year’s high on June 3. The Standard & Poor’s GSCI Index of 24 commodities has climbed 7 percent over the same period.
Derivatives betting on the Baltic Exchange’s future assessments fell for a third day, indicating the declining spot market is causing traders’ future expectations to deteriorate.
October-to-December forward freight agreements, or FFAs, for capesizes lost 4.7 percent to $36,750 a day, according to prices from Imarex ASA, a broker of the accords. That implies traders expect the market to drop 19 percent by year-end.
Panamax contracts fell 1 percent to $17,625 a day, implying a 16 percent decline.
Source: Bloomberg
Friday, August 7, 2009
Saldanha Iron Ore Terminal To Be Ready By 2011
The Port of Saldanha bulk iron-ore
handling facility expansion project is ahead of schedule and expected to be completed by the end of 2011.
According to Transnet’s Ben Khonyane, Phase 1B of the project, which involved the expansion of throughput capacity at the facility to 47-million tons a year, has been completed and Transnet is now under way with the next phase of the project.
“Phase 1C is under way to increase throughput capacity of iron-ore from 47-million tons a year to 58-million tons a year,” elaborates Khonyane.
This third section of the expansion project is essentially focused on equipment optimisation. The project involves the optimisation of chutes and conveyors, the upgrade of the ship loader conveyor, and the installation of dual ship loading motors.
Khonyane tells Mining Weekly that the value of this project is estimated between R400-million and R500-million.
Significantly, Khonyane added that Transnet will not have to purchase any new assets in order to complete this phase of the capacity expansion project.
While this phase of the project is only expected to be completed by the end of 2011, Khonyane states that Transnet is already investigating the possibility of further expanding the throughput capacity beyond 58-million tons a year.
Khonyane states that Transnet is under way with a feasibility study to determine the viability of a possible Phase 2 expansion, which would enable the increase of throughput capacity to 76-million tons a year in the first phase and 93- million tons in the second phase of the project.
Transnet is currently in discussions with Kumba Iron Ore and Assmang to determine the necessity of further expanding the bulk terminals throughput capacity.
It is expected that Transnet will make a decision on this project by the end of 2010.
The Port of Saldanha bulk iron-ore handling facility is the only dedicated iron-ore export facility in South Africa.
While the capacity expansion project is well under way, Khonyane elaborates that the iron-ore terminal has been experiencing increased export volumes in recent months.
“Since January, we have experienced record export iron-ore volumes averaging at four-million tons a month,” states Khonayne.
“This is much more than expected owing to the fact that international demand for iron-ore was initially affected by the global economic crisis in the fourth quarter of last year.”
However, since the beginning of the year there has been sustained international demand for South Africa’s iron-ore.
“We have never seen volumes of four-million tons a month before,” enthuses Khonyane.
“It has been sustained up to July and we have confirmed orders for August of between 4,2-million and 4,5-million tons.”
According to Khonyane, the increased export volumes are being driven by strong Chinese demand for iron-ore.
Currently, between 70 % and 80% of South African iron-ore exports are destined for China and it has been necessary to divert European exports to meet the growing Chinese demand.
Source: Mining Weekly
According to Transnet’s Ben Khonyane, Phase 1B of the project, which involved the expansion of throughput capacity at the facility to 47-million tons a year, has been completed and Transnet is now under way with the next phase of the project.
“Phase 1C is under way to increase throughput capacity of iron-ore from 47-million tons a year to 58-million tons a year,” elaborates Khonyane.
This third section of the expansion project is essentially focused on equipment optimisation. The project involves the optimisation of chutes and conveyors, the upgrade of the ship loader conveyor, and the installation of dual ship loading motors.
Khonyane tells Mining Weekly that the value of this project is estimated between R400-million and R500-million.
Significantly, Khonyane added that Transnet will not have to purchase any new assets in order to complete this phase of the capacity expansion project.
While this phase of the project is only expected to be completed by the end of 2011, Khonyane states that Transnet is already investigating the possibility of further expanding the throughput capacity beyond 58-million tons a year.
Khonyane states that Transnet is under way with a feasibility study to determine the viability of a possible Phase 2 expansion, which would enable the increase of throughput capacity to 76-million tons a year in the first phase and 93- million tons in the second phase of the project.
Transnet is currently in discussions with Kumba Iron Ore and Assmang to determine the necessity of further expanding the bulk terminals throughput capacity.
It is expected that Transnet will make a decision on this project by the end of 2010.
The Port of Saldanha bulk iron-ore handling facility is the only dedicated iron-ore export facility in South Africa.
While the capacity expansion project is well under way, Khonyane elaborates that the iron-ore terminal has been experiencing increased export volumes in recent months.
“Since January, we have experienced record export iron-ore volumes averaging at four-million tons a month,” states Khonayne.
“This is much more than expected owing to the fact that international demand for iron-ore was initially affected by the global economic crisis in the fourth quarter of last year.”
However, since the beginning of the year there has been sustained international demand for South Africa’s iron-ore.
“We have never seen volumes of four-million tons a month before,” enthuses Khonyane.
“It has been sustained up to July and we have confirmed orders for August of between 4,2-million and 4,5-million tons.”
According to Khonyane, the increased export volumes are being driven by strong Chinese demand for iron-ore.
Currently, between 70 % and 80% of South African iron-ore exports are destined for China and it has been necessary to divert European exports to meet the growing Chinese demand.
Source: Mining Weekly
Thursday, August 6, 2009
Korean Firms Buy Australian Coal Stake
Two South Korean companies have agreed to buy a 7.5 percent stake in a soft coal mine in Australia for some A$125 million ($105.2 million) to secure 1.5 million tonnes of bituminous coal a year, a South Korean newspaper reported.
Korea Resources Corporation and Daewoo International have signed a preliminary deal to buy the stake from Australian coal miner Whitehaven, Maeil Business Newspaper quoted unnamed industry officials as saying in its early Friday edition.
KORES and Daewoo will sign a final deal around the end of this month, the paper added.
Source: Reuters
Korea Resources Corporation and Daewoo International have signed a preliminary deal to buy the stake from Australian coal miner Whitehaven, Maeil Business Newspaper quoted unnamed industry officials as saying in its early Friday edition.
KORES and Daewoo will sign a final deal around the end of this month, the paper added.
Source: Reuters
China Iron Ore Restocking At An End - BHP
Chinese restocking of iron ore is at an end, according to BHP Billiton, the world's largest miner.
Ian Ashby, head of iron ore at BHP, told the Diggers and Dealers mining conference in Australia, that Chinese stockpiles had been rebuilt and port stocks were settling back to more normal levels.
The way iron ore is priced is currently in a state of flux. China has yet to agree new benchmark prices and BHP is trying to move toward a more transparent pricing mechanism.
Mr Ashby refused to comment on progress with the talks.
Last week, BHP said that over the next 12 months 30pc of total annual sales will be made through new pricing mechanisms.
For almost four decades prices for iron ore have been settled through annual rounds of price contracts but, of agreements reached so far this year, just 23pc of total iron volumes would be sold at these benchmark prices.
A further 30pc will be sold on a mixture of quarterly negotiated pricing and spot and index-based pricing. This has left the pricing of 47pc of annual volumes yet to be agreed, with most of these being Chinese mills.
Other Asian iron ore customers have agreed to a 33pc cut in the benchmark price, but China has been holding out for steeper reductions. Pricing discussions in China have become fraught after Chinese authorities arrested four members of Rio Tinto's iron ore team, accusing them of stealing state secrets and bribery.
Source: Daily Telegraph
Ian Ashby, head of iron ore at BHP, told the Diggers and Dealers mining conference in Australia, that Chinese stockpiles had been rebuilt and port stocks were settling back to more normal levels.
The way iron ore is priced is currently in a state of flux. China has yet to agree new benchmark prices and BHP is trying to move toward a more transparent pricing mechanism.
Mr Ashby refused to comment on progress with the talks.
Last week, BHP said that over the next 12 months 30pc of total annual sales will be made through new pricing mechanisms.
For almost four decades prices for iron ore have been settled through annual rounds of price contracts but, of agreements reached so far this year, just 23pc of total iron volumes would be sold at these benchmark prices.
A further 30pc will be sold on a mixture of quarterly negotiated pricing and spot and index-based pricing. This has left the pricing of 47pc of annual volumes yet to be agreed, with most of these being Chinese mills.
Other Asian iron ore customers have agreed to a 33pc cut in the benchmark price, but China has been holding out for steeper reductions. Pricing discussions in China have become fraught after Chinese authorities arrested four members of Rio Tinto's iron ore team, accusing them of stealing state secrets and bribery.
Source: Daily Telegraph
Eldorado Gold Now Wholly Owns Brazil Iron Ore Project
Vancouver-based Eldorado Gold has acquired the 25% that it did not own in the Vila Nova iron-ore project, in Brazil, from local private company Mineracao Amapari SA, the Canadian firm announced on Wednesday.
In exchange, Amapari will receive a net profit interest royalty of 10%, plus a sliding scale royalty based on the operating margin on the project.
The agreement “simplifies and consolidates the ownership structure of Vila Nova without any additional upfront cost for Eldorado,” said CEO Paul Wright.
The project, which was completed and commissioned in the first half of this year, was put on care-and-maintenance immediately afterwards, because of the weak market for iron ore.
“The Vila Nova iron-ore project is not a core asset for Eldorado, but we look forward to putting the project in to commercial production once prices of iron-ore recover to satisfactory levels,” Wright said in a statement.
The asset contains proven and probable reserves of 9,2-million tons of ore at a grade of 61% iron, plus an inferred resource of two-million tons at 61,2% iron.
Eldorado produces gold from mines in China and Turkey, and has development projects in Turkey and Greece.
Source: Mining Weekly
In exchange, Amapari will receive a net profit interest royalty of 10%, plus a sliding scale royalty based on the operating margin on the project.
The agreement “simplifies and consolidates the ownership structure of Vila Nova without any additional upfront cost for Eldorado,” said CEO Paul Wright.
The project, which was completed and commissioned in the first half of this year, was put on care-and-maintenance immediately afterwards, because of the weak market for iron ore.
“The Vila Nova iron-ore project is not a core asset for Eldorado, but we look forward to putting the project in to commercial production once prices of iron-ore recover to satisfactory levels,” Wright said in a statement.
The asset contains proven and probable reserves of 9,2-million tons of ore at a grade of 61% iron, plus an inferred resource of two-million tons at 61,2% iron.
Eldorado produces gold from mines in China and Turkey, and has development projects in Turkey and Greece.
Source: Mining Weekly
China Coke Recovery "Unstable"
Shanghai Securities News cites Mr Huang Jingan, chairman of China Coking Industry Association, in response to the reviving coking industry in May and June as saying that market risks are still worth attention in the second half of 2009 against a backdrop of overcapacity.
Mr Huang said "Although steel price has climbed and coke price has increased, the whole coking industry still suffer losses. Only some independent coking enterprises can gain profits.”
He pointed out that “Boosted by the country 4 trillion stimulus package outputs of steel and coke in this year may break 500 million tonnes and 300 million tonnes respectively. However, total capacities record over 600 million tonnes and 400 million tonnes respectively. More than expected output growth will knock down product price hence total output needs to be restricted.”
Mr Huang said “Besides loan increment in the H1 of this year has exceeded full year target. Uncertainties exist for credit scale and then steel and coke markets in the H2. Shrinking worldwide demand indicates exports of steel products, coke and related chemical products can hardly turn better.”
He added that “Given tight supply and high price of coking coal, domestic enterprises have to import coking coal. Statistics show the country coking coal imports surged 3.4 times to 12.8 million tonnes in H1. Although coking coal imports have slowed down, total imports in this year is still likely to surpass 20 million tonnes.”
Mr Huang criticized that despite existing overcapacity, some furnaces are still expanding capacities buoyed by local governments' philosophy that investment will boost economic development. He said that "Some projects under planning are 5 million tonne grade or even 10 million tonnes grade production bases. These fresh capacities, especially blind expansion without targeted stable market, are of high market risks."
Source: Steel Guru/Shanghai Securities News
Mr Huang said "Although steel price has climbed and coke price has increased, the whole coking industry still suffer losses. Only some independent coking enterprises can gain profits.”
He pointed out that “Boosted by the country 4 trillion stimulus package outputs of steel and coke in this year may break 500 million tonnes and 300 million tonnes respectively. However, total capacities record over 600 million tonnes and 400 million tonnes respectively. More than expected output growth will knock down product price hence total output needs to be restricted.”
Mr Huang said “Besides loan increment in the H1 of this year has exceeded full year target. Uncertainties exist for credit scale and then steel and coke markets in the H2. Shrinking worldwide demand indicates exports of steel products, coke and related chemical products can hardly turn better.”
He added that “Given tight supply and high price of coking coal, domestic enterprises have to import coking coal. Statistics show the country coking coal imports surged 3.4 times to 12.8 million tonnes in H1. Although coking coal imports have slowed down, total imports in this year is still likely to surpass 20 million tonnes.”
Mr Huang criticized that despite existing overcapacity, some furnaces are still expanding capacities buoyed by local governments' philosophy that investment will boost economic development. He said that "Some projects under planning are 5 million tonne grade or even 10 million tonnes grade production bases. These fresh capacities, especially blind expansion without targeted stable market, are of high market risks."
Source: Steel Guru/Shanghai Securities News
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