Pilbara iron ore developer United Minerals Corporation has revealed new assay results show a 162m thick high grade zone of bedded mineralisation at the Railway Iron Ore Deposit.
Australian iron ore company, United Minerals Corporation continues to advance development of its Railway Deposit located in the Pilbara region of Western Australia with assay results from the recent reverse circulation drilling program at Boundary Zone within the southeastern segment of the deposit continuing to confirm a significant thickening of bedded mineralization.
Highlights:
1. New assay results show 162m thick high-grade zone within southeastern portion of Railway Deposit at Boundary Zone
2. New data further confirms a significant thickening of bedded mineralization in the south-eastern section of the Railway deposit
3. UMC supports State Government in negotiating infrastructure access for all Juniors in the Pilbara.
The new data are from five RC holes drilled at 40m spacing along section 674275 mE. The holes are situated on a drill line 100m east from section 674175 mE and were reported previously based on visual inspections of iron mineralization.
Mr Matthew Hogan CEO of United Minerals said that “These results reaffirm the outstanding commercial potential of the Railway Deposit. We support the State Government in its negotiations for infrastructure access on behalf of all Juniors in the Pilbara to unlock the revenues and jobs that come from bringing exciting projects such as this on line.”
Sunday, July 19, 2009
Riversdale Concludes Mozambique Mining Survey
Australia's Riversdale Mining has completed a feasibility study for a coal mine in Mozambique and will send it to Indian firm Tata Steel, which has a 35 percent stake in the project, to analyse.
Riversdale said in a statement on Saturday that the viability study was based on the estimates of coal reserves it made in April.
The study envisaged that, in an initial phase, 5.3 million tons will be extracted per year. Of this, 1.7 million tons will be top quality hard coking coal for export, plus 300,000 tons of thermal coal also for export.
Riversdale said expansion to the second stage, by 2014, will raise production to 10.6 million tons a year, including 3.3 million tons of coking coal and 2 million tons of thermal coal for export.
The third stage will almost double production to 20 million tons a year, it said, leaving open the timeframe.
"The timetable for the third stage will depend, among other factors, on the future conditions of the coal market, and the availability of port capacity and of rail and river transport," reads the statement.
Mining and coal processing should begin by early 2011.
SourcE: Reuters
Riversdale said in a statement on Saturday that the viability study was based on the estimates of coal reserves it made in April.
The study envisaged that, in an initial phase, 5.3 million tons will be extracted per year. Of this, 1.7 million tons will be top quality hard coking coal for export, plus 300,000 tons of thermal coal also for export.
Riversdale said expansion to the second stage, by 2014, will raise production to 10.6 million tons a year, including 3.3 million tons of coking coal and 2 million tons of thermal coal for export.
The third stage will almost double production to 20 million tons a year, it said, leaving open the timeframe.
"The timetable for the third stage will depend, among other factors, on the future conditions of the coal market, and the availability of port capacity and of rail and river transport," reads the statement.
Mining and coal processing should begin by early 2011.
SourcE: Reuters
Saturday, July 18, 2009
Goa Carbon In Calcined Petroleum Coke JV
Goa Carbon Ltd has announced that the Board of Directors of the Company at its meeting held on July 17, 2009, has decided to form a Joint Venture Company in China through a wholly owned subsidiary to be formed outside India for setting up a project to manufacture Calcined Petroleum Coke (CPC) up to a capacity of 1 million MT per annum utilizing a Vertical Shaft Kiln Technology.
India May Divest In Four Mining Units
The Indian central government is looking at four mining units under the administrative control of the steel ministry for a stake sale, but a roadmap is yet to be drawn. The move is being considered to meet funds requirement, a top government official said on Friday.
The names of National Mineral Development Corporation, Kudremukh Iron Ore Corporation, Manganese Ore (India) and Rashtriya Ispat Nigam figured for the stake sale during a meeting called by the finance secretary, but no decision has been taken yet on whether the government will shed part of its equity in these firms.
Separately in a written reply in Lok Sabha on Friday, minister of state for steel A Sai Prathap said the ministry has received proposals to divest its equity in RINL and MOIL. NMDC, the largest iron ore producer, is a ‘navratna’ company.
If the government considers divesting up to 10% equity in the company, it will be able to raise over Rs 10,000 crore. To another question in the Rajya Sabha, Sai Prathap said steel giant SAIL will see its workforce shrink by 20,000 by 2011-12.
Source: Economic Times
The names of National Mineral Development Corporation, Kudremukh Iron Ore Corporation, Manganese Ore (India) and Rashtriya Ispat Nigam figured for the stake sale during a meeting called by the finance secretary, but no decision has been taken yet on whether the government will shed part of its equity in these firms.
Separately in a written reply in Lok Sabha on Friday, minister of state for steel A Sai Prathap said the ministry has received proposals to divest its equity in RINL and MOIL. NMDC, the largest iron ore producer, is a ‘navratna’ company.
If the government considers divesting up to 10% equity in the company, it will be able to raise over Rs 10,000 crore. To another question in the Rajya Sabha, Sai Prathap said steel giant SAIL will see its workforce shrink by 20,000 by 2011-12.
Source: Economic Times
Orissa Government Rules Out Iron Ore Commitment
BHUBANESWAR: Indicating shortage of iron ore in the near future, the government of India's Orissa state said it was not committed to providing raw material linkage to steel plants on a long term basis.
"The state government has never assured any industry in the MoUs signed so far to supply raw material on a long term basis. The industries can arrange iron ore or any other raw materials required for steel making from other sources," industries and steel and mines minister Raghunath Mohanty told the Assembly Thursday night, while responding to a question on the budgetary demand of the departments.
Though the state had entered into an agreement with at least 49 steel producers for setting up units in the state, it could face scarcity of iron ore, which is the basic raw material required for steel manufacturing, if all the units started production to the maximum capacity of 76 MTPA.
The state has a reserve of 5,300 million tonnes of iron ore, of which 3,000 tonnes had already been leased out. However, many industries are yet to reach the production stage. Of the 49 MoUs, only 28 units had gone to partial production.
"We doubt, the state's iron ore reserve could be finished only in seven years in case all the 49 units started production to their full capacity," chief whip of Opposition Congress Prasad Harichandan said. Harichandan alleged that mindless mining and rampant theft of valuable minerals could lead the state to becoming a mineral deficit state from being one of the most mineral-rich state.
"I want specific response from the government on its plan on how to tackle situation when the iron ore reserves were finished," he said.
Stating that the amount of the state's mineral reserve were being re-accessed, the minister said as much as 10.4 million tonnes of fresh iron reserve had been located at Dholta hills in Sundergarh district, while one million tonnes of the same mineral was found deposited at Potagarh hills in Nawrangpur district.
Source: Times Of India
"The state government has never assured any industry in the MoUs signed so far to supply raw material on a long term basis. The industries can arrange iron ore or any other raw materials required for steel making from other sources," industries and steel and mines minister Raghunath Mohanty told the Assembly Thursday night, while responding to a question on the budgetary demand of the departments.
Though the state had entered into an agreement with at least 49 steel producers for setting up units in the state, it could face scarcity of iron ore, which is the basic raw material required for steel manufacturing, if all the units started production to the maximum capacity of 76 MTPA.
The state has a reserve of 5,300 million tonnes of iron ore, of which 3,000 tonnes had already been leased out. However, many industries are yet to reach the production stage. Of the 49 MoUs, only 28 units had gone to partial production.
"We doubt, the state's iron ore reserve could be finished only in seven years in case all the 49 units started production to their full capacity," chief whip of Opposition Congress Prasad Harichandan said. Harichandan alleged that mindless mining and rampant theft of valuable minerals could lead the state to becoming a mineral deficit state from being one of the most mineral-rich state.
"I want specific response from the government on its plan on how to tackle situation when the iron ore reserves were finished," he said.
Stating that the amount of the state's mineral reserve were being re-accessed, the minister said as much as 10.4 million tonnes of fresh iron reserve had been located at Dholta hills in Sundergarh district, while one million tonnes of the same mineral was found deposited at Potagarh hills in Nawrangpur district.
Source: Times Of India
Vale In Agreements With Ilva And Erdemir
Brazilian miner Vale said on Friday it has reached an iron ore price agreement with Italian steelmaker Ilva, cutting pellet prices by 48.3 percent and fine ore by 28.2 percent.
Separately, Vale said it also reached an agreement with Turkey's largest steelmaker Erdemir for the same price reductions on pellet prices and fine ore.
Iron ore prices are set each year through a benchmarking system based on bilateral negotiations between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished key price talks with Chinese steel mills following months of tough negotiations and the detention of Rio mining executives that has created diplomatic tensions between China and Australia.
Source: Reuters
Separately, Vale said it also reached an agreement with Turkey's largest steelmaker Erdemir for the same price reductions on pellet prices and fine ore.
Iron ore prices are set each year through a benchmarking system based on bilateral negotiations between steelmakers and the world's three principal iron miners -- Vale and Australian giants BHP Billiton and Rio Tinto.
Vale has not yet finished key price talks with Chinese steel mills following months of tough negotiations and the detention of Rio mining executives that has created diplomatic tensions between China and Australia.
Source: Reuters
China's Pilbara Iron Ore Play Runs Into Trouble
China's participation in a $2.7 billion Pilbara iron ore project is in serious doubt after talks with Clive Palmer's listed Australasian Resources broke down during a critical week for Sino-Australian relations.
State-owned Shougang, which has a 6.33 per cent stake in Australasian and a strategic alliance to develop its flagship iron ore venture at Cape Preston in Western Australia, forced the termination of project funding talks after its attempts to gain control of the company failed.
It is understood that, on top of the funding talks, the Chinese steelmaker was in separate negotiations with Mr Palmer over a deal to buy the majority of his 66percent stake in Australasian.
A source close to the funding talks said China wanted a deal "on their terms" and was not satisfied with the 50 per cent interest that project funding would have delivered. It wanted control of the parent company.
Australasian will now have to turn to other parties to secure the much-needed financing.
An Australasian spokesman said the increasing tension between Australia and China over the surprise arrest on July 5 of four of Rio Tinto's staff, including Australian national Stern Hu, on allegations of bribery and espionage, had not affected the discussions with Shougang.
But any deals between state-owned entities and miners will now come under greater scrutiny. Shougang has been caught up in the crisis, with reports that its head of iron ore purchases, Tan Yixin, allegedly provided production data to Rio.
Australasian Resources shares have been suspended for two weeks amid desperate negotiations with Shougang over the Cape Preston project agreement, which was originally signed in March 2007.
Shougang -- China's fourth-largest steelmaker -- had exclusive rights to deliver a finance offer to Australasian subsidiary International Minerals, which would provide the funding to develop the project, about 80km southwest of Karratha.
The deadline for the finalisation of the funding agreement has been extended repeatedly since its original deadline of September last year. Australasian had given its Chinese partner until June 30 to finally reach an agreement, but it is understood China was pushing hard to take control of the company through the purchase of a significant chunk of Mr Palmer's stake.
Australasian said yesterday that it was aware Mr Palmer had recently held discussions with Shougang over the potential sale of part of his shareholding, but that no agreement was reached.
Mr Palmer is fast emerging as a significant independent player in the Pilbara region and is likely to be high on China's radar as an alternative source of supply following news of the $US116 billion ($145bn) iron ore joint venture between Rio Tinto and BHP Billiton.
The other key player in the Pilbara, Andrew Forrest's Fortescue Metals Group, is closely aligned with China through its $645 million share deal with state-owned Chinese steelmaker Hunan Valin, which now has a 17.5 per cent stake in Fortescue.
Mr Palmer already has an alliance with China, through his deal with Citic Pacific, which bought the rights to 2 billion tonnes of iron ore from his Pilbara deposits. But his strategy is to maintain ownership of the lucrative tenements and the rights to the port and infrastructure at Cape Preston.
Australasian said it would remain in talks with Shougang and would step up discussions over funding with other parties, including interests from the Middle East, Africa and Asia.
Source: The Australian
State-owned Shougang, which has a 6.33 per cent stake in Australasian and a strategic alliance to develop its flagship iron ore venture at Cape Preston in Western Australia, forced the termination of project funding talks after its attempts to gain control of the company failed.
It is understood that, on top of the funding talks, the Chinese steelmaker was in separate negotiations with Mr Palmer over a deal to buy the majority of his 66percent stake in Australasian.
A source close to the funding talks said China wanted a deal "on their terms" and was not satisfied with the 50 per cent interest that project funding would have delivered. It wanted control of the parent company.
Australasian will now have to turn to other parties to secure the much-needed financing.
An Australasian spokesman said the increasing tension between Australia and China over the surprise arrest on July 5 of four of Rio Tinto's staff, including Australian national Stern Hu, on allegations of bribery and espionage, had not affected the discussions with Shougang.
But any deals between state-owned entities and miners will now come under greater scrutiny. Shougang has been caught up in the crisis, with reports that its head of iron ore purchases, Tan Yixin, allegedly provided production data to Rio.
Australasian Resources shares have been suspended for two weeks amid desperate negotiations with Shougang over the Cape Preston project agreement, which was originally signed in March 2007.
Shougang -- China's fourth-largest steelmaker -- had exclusive rights to deliver a finance offer to Australasian subsidiary International Minerals, which would provide the funding to develop the project, about 80km southwest of Karratha.
The deadline for the finalisation of the funding agreement has been extended repeatedly since its original deadline of September last year. Australasian had given its Chinese partner until June 30 to finally reach an agreement, but it is understood China was pushing hard to take control of the company through the purchase of a significant chunk of Mr Palmer's stake.
Australasian said yesterday that it was aware Mr Palmer had recently held discussions with Shougang over the potential sale of part of his shareholding, but that no agreement was reached.
Mr Palmer is fast emerging as a significant independent player in the Pilbara region and is likely to be high on China's radar as an alternative source of supply following news of the $US116 billion ($145bn) iron ore joint venture between Rio Tinto and BHP Billiton.
The other key player in the Pilbara, Andrew Forrest's Fortescue Metals Group, is closely aligned with China through its $645 million share deal with state-owned Chinese steelmaker Hunan Valin, which now has a 17.5 per cent stake in Fortescue.
Mr Palmer already has an alliance with China, through his deal with Citic Pacific, which bought the rights to 2 billion tonnes of iron ore from his Pilbara deposits. But his strategy is to maintain ownership of the lucrative tenements and the rights to the port and infrastructure at Cape Preston.
Australasian said it would remain in talks with Shougang and would step up discussions over funding with other parties, including interests from the Middle East, Africa and Asia.
Source: The Australian
Friday, July 17, 2009
IFM Sees Increase In Ferrochrome Demand
International Ferro Metals Ltd said ferrochrome demand and spot prices have "increased noticeably" over the last four weeks as a result of the Chinese economic stimulus programme and low ferrochrome inventories.
IFM expects to see firmer demand for ferrochrome, used in stainless steel to prevent corrosion, at least for the short term.
The shares were up 6.1 percent at 43.375 pence at 0735 GMT, but are a long way from last year's high of 168.75.
Production recovered from the third quarter, but slumped 67 percent from the year earlier as the company responded to lower demand from steelmakers. Fourth-quarter output increased to 18,437 tonnes from 1,168 tonnes in the third quarter.
Output and sales for the year to end-June fell to 110,364 tonnes and 101,835 tonnes, respectively, from 205,607 tonnes and 207,862 tonnes in the previous financial year.
Numis Securities said the fourth-quarter production figure was in line with its estimates and that full-year sales exceeded its forecasts by 12 percent.
The broker added that net cash, at 340 million rand, was also better than it expected.
IFM started a three-month programme in April to convert raw material inventory, comprising mainly chrome ore and coke, to finished ferrochrome product. It has reduced its inventories to 9,362 tonnes from 33,207 tonnes in the preceding quarter.
It restarted one of its two furnaces, which were suspended last November, on April 20 and expects to make a decision on the other furnace soon.
"We are currently assuming that FY2010 ferrochrome output is at 60 percent of IFM's nominal 260,000 tonne capacity - i.e. the second furnace will only be returned to production sometime in 2010," said Mike Stuart, an analyst at Numis.
Rival South African ferrochrome producer Merafe Resources Ltd said last week it had increased output at its joint venture with Xstrata to 60 percent, due to higher demand.
IFM said it continued to make costs savings in the last quarter but did not provide details.
South African miners are facing cost pressures as wages and power costs rise and as the rand remains strong.
Source: Reuters
IFM expects to see firmer demand for ferrochrome, used in stainless steel to prevent corrosion, at least for the short term.
The shares were up 6.1 percent at 43.375 pence at 0735 GMT, but are a long way from last year's high of 168.75.
Production recovered from the third quarter, but slumped 67 percent from the year earlier as the company responded to lower demand from steelmakers. Fourth-quarter output increased to 18,437 tonnes from 1,168 tonnes in the third quarter.
Output and sales for the year to end-June fell to 110,364 tonnes and 101,835 tonnes, respectively, from 205,607 tonnes and 207,862 tonnes in the previous financial year.
Numis Securities said the fourth-quarter production figure was in line with its estimates and that full-year sales exceeded its forecasts by 12 percent.
The broker added that net cash, at 340 million rand, was also better than it expected.
IFM started a three-month programme in April to convert raw material inventory, comprising mainly chrome ore and coke, to finished ferrochrome product. It has reduced its inventories to 9,362 tonnes from 33,207 tonnes in the preceding quarter.
It restarted one of its two furnaces, which were suspended last November, on April 20 and expects to make a decision on the other furnace soon.
"We are currently assuming that FY2010 ferrochrome output is at 60 percent of IFM's nominal 260,000 tonne capacity - i.e. the second furnace will only be returned to production sometime in 2010," said Mike Stuart, an analyst at Numis.
Rival South African ferrochrome producer Merafe Resources Ltd said last week it had increased output at its joint venture with Xstrata to 60 percent, due to higher demand.
IFM said it continued to make costs savings in the last quarter but did not provide details.
South African miners are facing cost pressures as wages and power costs rise and as the rand remains strong.
Source: Reuters
Gujarat NRE To Complete Bey Takeover By End Of Year
Gujarat NRE Coke, a leading coking coal producer, which has offered to buy 90 per cent equity in Australian coal exploration firm Rey Resources is looking to complete the hostile takeover by the end of this year.
The deal estimated to be at Rs 53.21 crore will add thermal coal to the portfolio of the Indian firm.
"We are looking to close the deal in next five months or so. This will add thermal coal to our portfolio apart from increasing the liquidity in our Australian company," Gujarat NRE Coke CMD Arun Kumar Jagatramka said in an interview.
Gujarat NRE Minerals, the subsidiary of the Indian firm, had made a bid to acquire Rey Resources last month, which the target company had termed as an "unsolicited" move and decided to oppose it.
The domestic producer of met coke — primarily consumed by steel firms, is looking to buy the assets of the firm in an off-market "all share no cash" deal, for which the bidders' statement would be circulated to the shareholders of Rey Resources by next month.
Gujarat NRE Minerals (GNM) already holds about 16.64 per cent stake in the Australian entity. It has offered one GNM share against every five shares of the target firm. The Indian firm is eyeing the rich coal reserves of the Australian firm.
Source: Business Standard
The deal estimated to be at Rs 53.21 crore will add thermal coal to the portfolio of the Indian firm.
"We are looking to close the deal in next five months or so. This will add thermal coal to our portfolio apart from increasing the liquidity in our Australian company," Gujarat NRE Coke CMD Arun Kumar Jagatramka said in an interview.
Gujarat NRE Minerals, the subsidiary of the Indian firm, had made a bid to acquire Rey Resources last month, which the target company had termed as an "unsolicited" move and decided to oppose it.
The domestic producer of met coke — primarily consumed by steel firms, is looking to buy the assets of the firm in an off-market "all share no cash" deal, for which the bidders' statement would be circulated to the shareholders of Rey Resources by next month.
Gujarat NRE Minerals (GNM) already holds about 16.64 per cent stake in the Australian entity. It has offered one GNM share against every five shares of the target firm. The Indian firm is eyeing the rich coal reserves of the Australian firm.
Source: Business Standard
China Holds Iron Ore Talks With Vale
The China Iron and Steel Association is holding iron ore price talks with Brazil’s Vale SA instead of Rio Tinto Group after four of Rio’s executives were detained in China on allegations of espionage, the Australian Financial Review reported without saying where it got the information.
The association wants Vale to accept a lower benchmark price for contracted iron ore in exchange for buying more of the raw material from the Brazilian company, the newspaper reported, citing unidentified sources.
Vale spokesman Fernando Thompson said the company doesn’t comment on market speculation. Rio spokesman Gervase Greene wasn’t available when contacted today in Perth.
Steel mills in China, the world’s largest buyer of iron ore, are seeking a bigger price cut than the 33 percent agreed on in May between London-based Rio and Japanese, South Korean and Taiwan producers. Vale, the world’s biggest, has said it’s waiting for Australian producers to set prices with China before concluding its own agreements with Chinese mills.
The price talks are ongoing and may conclude soon, Zou Jian, former chairman of the China Metallurgical Mining Enterprise Association, a body of domestic iron ore mining companies, said in Beijing on July 15. Zou cited information from the association for his comment.
Source: Bloomberg
The association wants Vale to accept a lower benchmark price for contracted iron ore in exchange for buying more of the raw material from the Brazilian company, the newspaper reported, citing unidentified sources.
Vale spokesman Fernando Thompson said the company doesn’t comment on market speculation. Rio spokesman Gervase Greene wasn’t available when contacted today in Perth.
Steel mills in China, the world’s largest buyer of iron ore, are seeking a bigger price cut than the 33 percent agreed on in May between London-based Rio and Japanese, South Korean and Taiwan producers. Vale, the world’s biggest, has said it’s waiting for Australian producers to set prices with China before concluding its own agreements with Chinese mills.
The price talks are ongoing and may conclude soon, Zou Jian, former chairman of the China Metallurgical Mining Enterprise Association, a body of domestic iron ore mining companies, said in Beijing on July 15. Zou cited information from the association for his comment.
Source: Bloomberg
Thursday, July 16, 2009
Imperial Aluminum Buys Bankrupt Plant
Chicago-based Imperial Zinc Corporation has purchased the former Aluminum One manufacturing facility on Roy Owens Boulevard in Scottsboro.
The Scottsboro facility will be known as Imperial Aluminum - Scottsboro, LLC. It will not be opened immediately due to market conditions.
The purchase from Ohio-based Commercial Alloys was approved by an Ohio bankruptcy court earlier this month. Imperial Zinc also acquired a smelter operation located in Minerva, Ohio as part of the $1.3 million deal.
“The Jackson County EDA and the Scottsboro IDB along with our city and county officials are excited about this news,” Jackson County Economic Development Authority President and CEO Goodrich “Dus” Rogers said Tuesday. “This facility was built for a specific use (metal recycling and smelting) and we are optimistic that the new owners will be back in production once the economy improves and the demand for aluminum increases."
Rogers said he anticipated the company would be similar in size and operations to Aluminum One. That facility employed approximately 70 people.
Imperial Zinc is currently operating the Ohio plant. It has a potential output of 8 to 9 million pounds while the Scottsboro facility has a capacity of 6 to 7 million pounds. Company officials told Platts Metals Week that the Minerva facility could be at full capacity by year's end.
The new owners acquired approximately 3 million pounds of aluminum. A company spokesperson told Platts that the inventory was worth "a couple of million dollars."
Imperial said it would wait until market conditions improved before opening the Scottsboro facility. It converts aluminum alloy to sell to diecasters and processes zinc scrap.
"We'd like to open (the Scottsboro plant) tomorrow," the company said in a press release. "But we're not going to jump into a market of oversupply and fight for business."
In a separate correspondence a company spokesperson said, "we hope to be back up and running by the end of this year, but production will be based on the economy."
"We welcome Imperial Aluminum - Scottsboro LLC to Jackson County. We look forward to working with them and seeing them employing Jackson County citizens," Rogers said.
Aluminum One located in Scottsboro in early 2007, operating a secondary aluminum processing and tolling facility, including the shredding and melting of scrap in the 60,000 square foot building located across the road from Polyamide High Performance, Inc. The company bought the plant from Allied Metals. It went into bankruptcy proceedings last year.
Source: Scottsboro Daily Sentinel
The Scottsboro facility will be known as Imperial Aluminum - Scottsboro, LLC. It will not be opened immediately due to market conditions.
The purchase from Ohio-based Commercial Alloys was approved by an Ohio bankruptcy court earlier this month. Imperial Zinc also acquired a smelter operation located in Minerva, Ohio as part of the $1.3 million deal.
“The Jackson County EDA and the Scottsboro IDB along with our city and county officials are excited about this news,” Jackson County Economic Development Authority President and CEO Goodrich “Dus” Rogers said Tuesday. “This facility was built for a specific use (metal recycling and smelting) and we are optimistic that the new owners will be back in production once the economy improves and the demand for aluminum increases."
Rogers said he anticipated the company would be similar in size and operations to Aluminum One. That facility employed approximately 70 people.
Imperial Zinc is currently operating the Ohio plant. It has a potential output of 8 to 9 million pounds while the Scottsboro facility has a capacity of 6 to 7 million pounds. Company officials told Platts Metals Week that the Minerva facility could be at full capacity by year's end.
The new owners acquired approximately 3 million pounds of aluminum. A company spokesperson told Platts that the inventory was worth "a couple of million dollars."
Imperial said it would wait until market conditions improved before opening the Scottsboro facility. It converts aluminum alloy to sell to diecasters and processes zinc scrap.
"We'd like to open (the Scottsboro plant) tomorrow," the company said in a press release. "But we're not going to jump into a market of oversupply and fight for business."
In a separate correspondence a company spokesperson said, "we hope to be back up and running by the end of this year, but production will be based on the economy."
"We welcome Imperial Aluminum - Scottsboro LLC to Jackson County. We look forward to working with them and seeing them employing Jackson County citizens," Rogers said.
Aluminum One located in Scottsboro in early 2007, operating a secondary aluminum processing and tolling facility, including the shredding and melting of scrap in the 60,000 square foot building located across the road from Polyamide High Performance, Inc. The company bought the plant from Allied Metals. It went into bankruptcy proceedings last year.
Source: Scottsboro Daily Sentinel
Rio, Ivanhoe Win Approval For Oyu Tolgoi Project
Rio Tinto Group, the world’s third-largest mining company, and Ivanhoe Mines Ltd. have won approval from Mongolia’s parliament to develop the $3 billion Oyu Tolgoi copper deposit, Ivanhoe said.
Lawmakers present voted 63 percent in favor of “a resolution that authorizes the government of Mongolia to conclude a long-term, definitive investment agreement with Ivanhoe Mines and Rio Tinto for the development and operation of the Oyu Tolgoi copper-gold mining complex in southern Mongolia,” Vancouver-based Ivanhoe said in a statement.
Ivanhoe has been trying for more than five years to win an investment agreement from Mongolia to develop Oyu Tolgoi and benefit from demand in China, the biggest metals buyer. London- based Rio called Oyu Tolgoi “the world’s largest undeveloped copper-gold resource” when it agreed to buy 10 percent of Ivanhoe in 2006.
Under a 2007 draft investment agreement, the government would have had the right to a 34 percent equity stake in the project and related taxes equivalent to 55 percent of the profits, Rio Chief Executive Officer Tom Albanese said in February 2008.
Mongolian President Tsakhiagiin Elbegdorj said last month he wants to change the terms to allow the government to take 50 percent of the profit, rather than buy an equity stake.
Oyu Tolgoi is about 80 kilometres (50 miles) north of Mongolia’s border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces.
SourcE: Bloomberg
Lawmakers present voted 63 percent in favor of “a resolution that authorizes the government of Mongolia to conclude a long-term, definitive investment agreement with Ivanhoe Mines and Rio Tinto for the development and operation of the Oyu Tolgoi copper-gold mining complex in southern Mongolia,” Vancouver-based Ivanhoe said in a statement.
Ivanhoe has been trying for more than five years to win an investment agreement from Mongolia to develop Oyu Tolgoi and benefit from demand in China, the biggest metals buyer. London- based Rio called Oyu Tolgoi “the world’s largest undeveloped copper-gold resource” when it agreed to buy 10 percent of Ivanhoe in 2006.
Under a 2007 draft investment agreement, the government would have had the right to a 34 percent equity stake in the project and related taxes equivalent to 55 percent of the profits, Rio Chief Executive Officer Tom Albanese said in February 2008.
Mongolian President Tsakhiagiin Elbegdorj said last month he wants to change the terms to allow the government to take 50 percent of the profit, rather than buy an equity stake.
Oyu Tolgoi is about 80 kilometres (50 miles) north of Mongolia’s border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces.
SourcE: Bloomberg
CISA Unaware Of Iron Ore Agreement
A senior official from the China Iron and Steel Association said that he wasn't aware of any iron ore term price agreement reached between Chinese mills and overseas iron ore miners.
Qi Xiangdong, the association's deputy secretary-general, declined to comment on a report that Chinese mills have struck a deal for a 33% discount from last year's benchmark prices with Anglo-Australian miners Rio Tinto and BHP Billiton Ltd.
Qi Xiangdong, the association's deputy secretary-general, declined to comment on a report that Chinese mills have struck a deal for a 33% discount from last year's benchmark prices with Anglo-Australian miners Rio Tinto and BHP Billiton Ltd.
Wednesday, July 15, 2009
Orissa Units Seek Raw Material Security
The Kalinganagar Industries Association (KNIA), an organisation representing the interests of ten steel units at Kalinganagar in Orissa’s Jajpur district, have sought raw material security for smooth running of the units.
The units in the Kalinganagar Industrial Complex which solely depend on the Daitari mines for iron ore and Sukinda mines for chrome ore are reeling under raw material scarcity.
KNIA pointed out that the Orissa Mining Corporation (OMC) needs to reserve its raw materials for the units in Kalinganagar and allocate the surplus quantity to units located elsewhere. Meanwhile, OMC was exploring the possibility of having long-term supply pacts with the steel players which do no have captive iron ore mines and KNIA has welcomed this move.
The association has sought the intervention of PK Rastogi, the Union steel secretary for securing the raw material supplies for the steel units in Kalinganagar.
The issue of the scarcity of raw material was earlier raised by KNIA during a meeting with PK Rastogi, the Union steel secretary on June 24 this year.
The units under KNIA are Tata Steel Limited, JSL Limited, Visa Steel Limited, Dinabhandu Steel and Power Limited and Rohit Ferro-Tech Limited to name a few.
Source: Business Standard
The units in the Kalinganagar Industrial Complex which solely depend on the Daitari mines for iron ore and Sukinda mines for chrome ore are reeling under raw material scarcity.
KNIA pointed out that the Orissa Mining Corporation (OMC) needs to reserve its raw materials for the units in Kalinganagar and allocate the surplus quantity to units located elsewhere. Meanwhile, OMC was exploring the possibility of having long-term supply pacts with the steel players which do no have captive iron ore mines and KNIA has welcomed this move.
The association has sought the intervention of PK Rastogi, the Union steel secretary for securing the raw material supplies for the steel units in Kalinganagar.
The issue of the scarcity of raw material was earlier raised by KNIA during a meeting with PK Rastogi, the Union steel secretary on June 24 this year.
The units under KNIA are Tata Steel Limited, JSL Limited, Visa Steel Limited, Dinabhandu Steel and Power Limited and Rohit Ferro-Tech Limited to name a few.
Source: Business Standard
LKAB Agrees 48% Iron Ore Pellet Cut With Salzgitter
Swedish high-grade iron ore producer LKAB has said it has agreed with its largest German pellets customer, Salzgitter AG, to lower its annual iron ore pellet price by 48.3%.
LKAB has settled the price for blast furnace pellets with Salzgitter Flachstahl at $1.2643 per dry metric ton Fe unit for 2009.
Source: Trading Markets
LKAB has settled the price for blast furnace pellets with Salzgitter Flachstahl at $1.2643 per dry metric ton Fe unit for 2009.
Source: Trading Markets
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