Tuesday, 20 Mar 2012
The Association of Mining and Exploration Companies, which represents small and mid tier miners, condemned the tax.
Association chief executive Mr Simon Bennison said “The tax is simply unfair to smaller emerging miners, and is so complex that the administrative and compliance burden on industry and government will be extreme. “The introduction of this anti-competitive legislation in Australia will only further push investment capital offshore, and change our reputation as a safe place in which to invest.”
Source - Reuters
Tuesday, March 20, 2012
Monday, March 19, 2012
More coal imports likely following duty reduction
Monday, 19 Mar 2012
Seeking to address the coal shortage affecting the power and steel sectors, government has announced a slew of measures for enhancing its availability in the Budget, a development welcomed by Coal India Ltd.
Mr Zohra Chatterji CMD of CIL said that "We welcome the removal of import duty on coal.”
The Coal Ministry is of the view that development would lead to an increase in import of fossil fuel to the country.
While presenting the Budget for 2012-13, Finance Minister Pranab Mukherjee said that "I propose to ease the situation by providing full exemption from basic customs duty and a concessional CVD (Countervailing Duty) of 1% to steam coal for a period of two years till March 31, 2014."
On the proposals, Coal Secretary Mr Alok Perti said that "The exemption will result in increase in import of non-coking coal by around one million tonnes as the prices of the dry fuel would come down.”
The coal ministry had pitched for the reduction in the duty and had even written to the Finance Ministry on the same prior to the budget announcement.
Singareni Collieries Company Ltd CMD S Narsing Rao, however, said the duty exemption would not have much impact on the domestic coal industry.
The government has proposed to remove 5% customs duty on non-coking coal.
According to an official in the state-owned firm, the duty exemption will also result in reducing the demand-supply gap of fossil fuel.
Power sector is one of the main consumers of non coking coal and nearly two third of the electricity generation in the country is coal based.
The power sector is likely to miss the non-coking coal import target of 55 million tonnes for the current fiscal as companies have imported only 30 million tonnes till December.
Source - www.indianexpress.com
Seeking to address the coal shortage affecting the power and steel sectors, government has announced a slew of measures for enhancing its availability in the Budget, a development welcomed by Coal India Ltd.
Mr Zohra Chatterji CMD of CIL said that "We welcome the removal of import duty on coal.”
The Coal Ministry is of the view that development would lead to an increase in import of fossil fuel to the country.
While presenting the Budget for 2012-13, Finance Minister Pranab Mukherjee said that "I propose to ease the situation by providing full exemption from basic customs duty and a concessional CVD (Countervailing Duty) of 1% to steam coal for a period of two years till March 31, 2014."
On the proposals, Coal Secretary Mr Alok Perti said that "The exemption will result in increase in import of non-coking coal by around one million tonnes as the prices of the dry fuel would come down.”
The coal ministry had pitched for the reduction in the duty and had even written to the Finance Ministry on the same prior to the budget announcement.
Singareni Collieries Company Ltd CMD S Narsing Rao, however, said the duty exemption would not have much impact on the domestic coal industry.
The government has proposed to remove 5% customs duty on non-coking coal.
According to an official in the state-owned firm, the duty exemption will also result in reducing the demand-supply gap of fossil fuel.
Power sector is one of the main consumers of non coking coal and nearly two third of the electricity generation in the country is coal based.
The power sector is likely to miss the non-coking coal import target of 55 million tonnes for the current fiscal as companies have imported only 30 million tonnes till December.
Source - www.indianexpress.com
Supply shortage continues in Karnataka
Monday, 19 Mar 2012
Business Standard reported that the postponement of the Supreme Court verdict on illegal mining in Karnataka has put steel producers in a quandary as most of them have already cut production because only low grade iron ore is available from the E auctions of the Metal Scrap Trading Company.
The Supreme Court said that the three judges hearing the case will not be available for hearing on March 16. Last month, the apex court had adjourned the hearing on the case by two weeks to enable the Central Empowered Committee to hear the responses of the affected companies and the State Government.
Mr Seshagiri Rao joint MD of JSW Steel said the company has to cut down its capacity utilization to 70 per cent in February against 90% in January due to poor quality of iron ore being supplied by Metal Scrap.
He added that “We have about three to four million tonnes of iron ore stockpile left with us. The question now is whether we should be using it. Use of low grade iron ore is taking a heavy toll on our furnace.”
He added that “Unlike coal, iron ore cannot be imported as it will be unaffordable. The costs will increase substantially even if we have to source it from other states. Even if the Court allows opening up new mines in the state, it will take at least two to three months to start mining.”
Karnataka produces 16 million tonnes annually of iron and steel, constituting about 24% of the country's production of 66 million tonnes annually. Karnataka also supplies iron ore to companies located outside the State.
Source - Business Standard
Business Standard reported that the postponement of the Supreme Court verdict on illegal mining in Karnataka has put steel producers in a quandary as most of them have already cut production because only low grade iron ore is available from the E auctions of the Metal Scrap Trading Company.
The Supreme Court said that the three judges hearing the case will not be available for hearing on March 16. Last month, the apex court had adjourned the hearing on the case by two weeks to enable the Central Empowered Committee to hear the responses of the affected companies and the State Government.
Mr Seshagiri Rao joint MD of JSW Steel said the company has to cut down its capacity utilization to 70 per cent in February against 90% in January due to poor quality of iron ore being supplied by Metal Scrap.
He added that “We have about three to four million tonnes of iron ore stockpile left with us. The question now is whether we should be using it. Use of low grade iron ore is taking a heavy toll on our furnace.”
He added that “Unlike coal, iron ore cannot be imported as it will be unaffordable. The costs will increase substantially even if we have to source it from other states. Even if the Court allows opening up new mines in the state, it will take at least two to three months to start mining.”
Karnataka produces 16 million tonnes annually of iron and steel, constituting about 24% of the country's production of 66 million tonnes annually. Karnataka also supplies iron ore to companies located outside the State.
Source - Business Standard
FMG sees iron ore at USD 120 to USD 150 per tonne near term
Monday, 19 Mar 2012
Fortescue Metals Group chief executive Mr Nev Power sees iron ore prices holding between USD 120 and USD 150 per tonne in the near term, on Thursday after the company raised USD 2 billion to help fund a tripling in its iron ore capacity.
Source - Reuters
Fortescue Metals Group chief executive Mr Nev Power sees iron ore prices holding between USD 120 and USD 150 per tonne in the near term, on Thursday after the company raised USD 2 billion to help fund a tripling in its iron ore capacity.
Source - Reuters
Saturday, March 17, 2012
SA bulk export volumes dropped by 21.2pct MoM in February
Saturday, 17 Mar 2012
Transnet National Ports Authority data showed on March 13th 2012 that SA's bulk export volumes dropped by 21.2% MoM in February 2012 from January 2012 as mostly iron ore exports out of Saldanha slumped by 48.6% MoM to 2,571,174 tonnes.
Although 2012 is a leap year, there were still only 29 days in February 2012 compared with 31 days in January 2012, so ports had 6.5% less time to load goods. That is why the YoY comparison makes more sense, but weather can also disrupt port operations such as the recent Cyclone Irina.
The YoY change in February 2012 was a 9.4% drop to 10.651 million tonnes after January's 28.1% YoY surge to 13.513 tonnes. The high YoY growth rate is in part due to poor weather in January 2011 that disrupted port operations.
Bulk exports rose by 6.6% in 2011 to a record 141.493 tonnes after a 9.0% jump in 2010. The YoY increase in the first two months of 2012 was 8.3%.
The slower growth last year was in part due to weather related disruptions as well as cable theft on the Mpumalanga Richards Bay coal line, which has resulted in derailments and other disruptions to traffic.
The coal line was closed for 20 days in May and June 2011 to do necessary maintenance and in October exports out of Richards Bay exceeded 8 million tonnes or an annualized 96 million tonnes, but this eased to 7.3 million tonnes in November 2011 before rising to 7.5 million tonnes in December 2011 and 7.7 million tonnes or an annualized 92 million tonnes in January 2012. In February 2012 Richards Bay shipped 7 million tonnes and shipments for the first two months are up 22.8% YoY.
In 2011, shipments out of Richards Bay, which are mostly coal, disappointed with a 1.4% rise to 76 million tonnes in 2011, while mostly iron ore shipments out of Saldanha Bay increased by 12.3% to 53.3 Mt. In January 2012 the y/y increases were 34.4% and 25.0% respectively, indicating that demand for these commodities remains very strong despite the global growth concerns.
The star performer last year was agricultural and manganese exports out of the other South African ports, such as Durban and Port Elizabeth, which jumped by 18.7% to 12.2 million tonnes, but in January 2012 there was a small 1.8% YoY decline to 0.8 million tonnes, while February 2012 saw a larger 8.5% YoY decline.
The majority of bulk exports go to Asia as China, India and Japan require South African coal and iron ore to feed their steel mills and thermal coal power stations.
As nuclear power stations in Japan have reduced their output after the March 2011 earthquake, Japan requires more coal to burn in their thermal power stations.
Source - Net Bridge
Transnet National Ports Authority data showed on March 13th 2012 that SA's bulk export volumes dropped by 21.2% MoM in February 2012 from January 2012 as mostly iron ore exports out of Saldanha slumped by 48.6% MoM to 2,571,174 tonnes.
Although 2012 is a leap year, there were still only 29 days in February 2012 compared with 31 days in January 2012, so ports had 6.5% less time to load goods. That is why the YoY comparison makes more sense, but weather can also disrupt port operations such as the recent Cyclone Irina.
The YoY change in February 2012 was a 9.4% drop to 10.651 million tonnes after January's 28.1% YoY surge to 13.513 tonnes. The high YoY growth rate is in part due to poor weather in January 2011 that disrupted port operations.
Bulk exports rose by 6.6% in 2011 to a record 141.493 tonnes after a 9.0% jump in 2010. The YoY increase in the first two months of 2012 was 8.3%.
The slower growth last year was in part due to weather related disruptions as well as cable theft on the Mpumalanga Richards Bay coal line, which has resulted in derailments and other disruptions to traffic.
The coal line was closed for 20 days in May and June 2011 to do necessary maintenance and in October exports out of Richards Bay exceeded 8 million tonnes or an annualized 96 million tonnes, but this eased to 7.3 million tonnes in November 2011 before rising to 7.5 million tonnes in December 2011 and 7.7 million tonnes or an annualized 92 million tonnes in January 2012. In February 2012 Richards Bay shipped 7 million tonnes and shipments for the first two months are up 22.8% YoY.
In 2011, shipments out of Richards Bay, which are mostly coal, disappointed with a 1.4% rise to 76 million tonnes in 2011, while mostly iron ore shipments out of Saldanha Bay increased by 12.3% to 53.3 Mt. In January 2012 the y/y increases were 34.4% and 25.0% respectively, indicating that demand for these commodities remains very strong despite the global growth concerns.
The star performer last year was agricultural and manganese exports out of the other South African ports, such as Durban and Port Elizabeth, which jumped by 18.7% to 12.2 million tonnes, but in January 2012 there was a small 1.8% YoY decline to 0.8 million tonnes, while February 2012 saw a larger 8.5% YoY decline.
The majority of bulk exports go to Asia as China, India and Japan require South African coal and iron ore to feed their steel mills and thermal coal power stations.
As nuclear power stations in Japan have reduced their output after the March 2011 earthquake, Japan requires more coal to burn in their thermal power stations.
Source - Net Bridge
Tuesday, March 13, 2012
Thermal power maintenance market expands
Tuesday, 13 Mar 2012
The Saudi Gazette reported that rising electricity demand and new installations in Asia Pacific and Middle East markets stimulate thermal power maintenance market to 2020.
GBI Research, a leading business intelligence provider, said in its study that the global maintenance services market generated revenue of USD 15,552.5 million in 2011, 2.3% growth from the 2008 revenue of USD 14,623.1 million.
The coal fired power plant segment contributed the majority share of 62% to the total thermal power maintenance market with revenue from this segment amounting to USD 9,666.8 million in 2011. The gas fired power plants segment contributed a share of 32% in 2011 with revenue contribution of USD 5,017.3 million.
The oil plants segment contributed the remaining share of 6 percent with a total revenue contribution of USD 868.1 million in 2011. The maintenance services market is largely driven by electricity demand and the aging power infrastructure leading to increased demand for maintenance services.
Source - Saudi Gazette
The Saudi Gazette reported that rising electricity demand and new installations in Asia Pacific and Middle East markets stimulate thermal power maintenance market to 2020.
GBI Research, a leading business intelligence provider, said in its study that the global maintenance services market generated revenue of USD 15,552.5 million in 2011, 2.3% growth from the 2008 revenue of USD 14,623.1 million.
The coal fired power plant segment contributed the majority share of 62% to the total thermal power maintenance market with revenue from this segment amounting to USD 9,666.8 million in 2011. The gas fired power plants segment contributed a share of 32% in 2011 with revenue contribution of USD 5,017.3 million.
The oil plants segment contributed the remaining share of 6 percent with a total revenue contribution of USD 868.1 million in 2011. The maintenance services market is largely driven by electricity demand and the aging power infrastructure leading to increased demand for maintenance services.
Source - Saudi Gazette
China iron ore imports in Feb up by 34pct YoY
Tuesday, 13 Mar 2012
China Knowledge quoted according to the latest statistics released by the General Administration of Customs said China, the world largest iron ore importer and steel maker saw its iron ore import surged 33.6%YoY to 64.98 million tonnes in February this year.
The iron ore imports last month reflected a 9.5% increase from the previous month. In the first two months of this year, the country iron imports rose 5.7%YoY to 124.26 million tonnes.
The average import price of iron ore dropped 12.9%YoY to USD 136.4 per tonne in two-month period.
According to figures from the China Iron and Steel Association the 80 large and medium sized steel enterprises in China suffered a loss of CNY 2.32 billion in January this year whereas they made profit of CNY 7.91 billion in the same month of last year.
Sourced - China Knowledge
China Knowledge quoted according to the latest statistics released by the General Administration of Customs said China, the world largest iron ore importer and steel maker saw its iron ore import surged 33.6%YoY to 64.98 million tonnes in February this year.
The iron ore imports last month reflected a 9.5% increase from the previous month. In the first two months of this year, the country iron imports rose 5.7%YoY to 124.26 million tonnes.
The average import price of iron ore dropped 12.9%YoY to USD 136.4 per tonne in two-month period.
According to figures from the China Iron and Steel Association the 80 large and medium sized steel enterprises in China suffered a loss of CNY 2.32 billion in January this year whereas they made profit of CNY 7.91 billion in the same month of last year.
Sourced - China Knowledge
South African Coal prices fall to lowest level in three months
Tuesday, 13 Mar 2012
Bloomberg reported that coal export prices at South Africa Richards Bay, the continent biggest terminal for shipping the fuel fell to their lowest level in three months.
According to IHS McCloskey data on Bloomberg prices declined 50 cents or 0.5% to USD 103.85 per tonne in the week ended March 9, the least since December 16.
The price is quoted on a free-on-board basis, which excludes delivery costs.
Source - Bloomberg
Bloomberg reported that coal export prices at South Africa Richards Bay, the continent biggest terminal for shipping the fuel fell to their lowest level in three months.
According to IHS McCloskey data on Bloomberg prices declined 50 cents or 0.5% to USD 103.85 per tonne in the week ended March 9, the least since December 16.
The price is quoted on a free-on-board basis, which excludes delivery costs.
Source - Bloomberg
Monday, March 12, 2012
Mozambique issues coal prospecting licenses
Monday, 12 Mar 2012
Bloomberg citing Mr Eduardo Alexandre National Mines Director as saying that Vale SA and Rio Tinto Plc are among the recipients of 20 coal prospecting licences issued by Mozambique for the Maniamba basin in northwestern Niassa province.
Mr Alexandre said the Maniamba basin covers 4,000 square kilometers and studies carried out so far have covered 870 square kilometres. He said that the government is working on a coal transportation system connecting the province.
Source - Bloomberg
Bloomberg citing Mr Eduardo Alexandre National Mines Director as saying that Vale SA and Rio Tinto Plc are among the recipients of 20 coal prospecting licences issued by Mozambique for the Maniamba basin in northwestern Niassa province.
Mr Alexandre said the Maniamba basin covers 4,000 square kilometers and studies carried out so far have covered 870 square kilometres. He said that the government is working on a coal transportation system connecting the province.
Source - Bloomberg
Coking coal in US spot market falls
Monday, 12 Mar 2012
Bloomberg quoted Energy Publishing as saying that metallurgical coal prices on the US spot market fell last week because of slack demand.
According to Energy Publishing low volatility coal decreased USD 3.87 or 1.9% to USD 201.13 a ton and high volatility coal dropped USD 1.75 or 0.9% to USD 187.50.
The data provider wrote in a weekly report that “Price sentiment hasn’t collapsed on the buy or on the sell side, though it has gotten more bearish.”
Energy Publishing says it surveys buyers and sellers of coal to determine pricing.
Source - Bloomberg
Bloomberg quoted Energy Publishing as saying that metallurgical coal prices on the US spot market fell last week because of slack demand.
According to Energy Publishing low volatility coal decreased USD 3.87 or 1.9% to USD 201.13 a ton and high volatility coal dropped USD 1.75 or 0.9% to USD 187.50.
The data provider wrote in a weekly report that “Price sentiment hasn’t collapsed on the buy or on the sell side, though it has gotten more bearish.”
Energy Publishing says it surveys buyers and sellers of coal to determine pricing.
Source - Bloomberg
Ethiopia to Partner with Progress Gulf to import coal
Monday, 12 Mar 2012
It is reported that Ethiopia petroleum enterprise is negotiating with delegates of Progress Gulf to import 25,000 tons of anthracite coal for use in smaller cement factories with vertical furnaces.
The shipment is expected to cost an estimated USD 4.2 million to supply a portion of the 360,000 tons of coal which is the projected annual demand for the small cement plants in the country.
The procedure to procure the coal was conducted by the Ethiopian Petroleum Enterprise, under mandate from the Ministry of Trade, which invited 6 companies to make offers in a closed tender. Progress Gulf won the tender making an offer of 168.4 dollars per ton of anthracite coal according to sources at EPE.
Smaller factories expected to make use of the anthracite coal due to their vertical kilns that make the use of steam coal unfeasible include Abyssinia, CH Clinker, Enchini Medrock, Jemma and Huang Shan.
Source - 2merkato
It is reported that Ethiopia petroleum enterprise is negotiating with delegates of Progress Gulf to import 25,000 tons of anthracite coal for use in smaller cement factories with vertical furnaces.
The shipment is expected to cost an estimated USD 4.2 million to supply a portion of the 360,000 tons of coal which is the projected annual demand for the small cement plants in the country.
The procedure to procure the coal was conducted by the Ethiopian Petroleum Enterprise, under mandate from the Ministry of Trade, which invited 6 companies to make offers in a closed tender. Progress Gulf won the tender making an offer of 168.4 dollars per ton of anthracite coal according to sources at EPE.
Smaller factories expected to make use of the anthracite coal due to their vertical kilns that make the use of steam coal unfeasible include Abyssinia, CH Clinker, Enchini Medrock, Jemma and Huang Shan.
Source - 2merkato
Saturday, March 10, 2012
Steam coal prices dip further
Saturday, 10 Mar 2012
Reuters reported that prompt physical steam coal prices fell slightly by around 25 cents a tonne on Friday as buyers pulled back and in line with weaker oil values. Brent crude fell 57 cents to USD 124.77 a barrel on Friday after key US jobs data beat expectations, lifting the dollar broadly to multi month highs against other currencies.
TRADES
An April loading Newcastle cargo traded at USD 105.00 a tonne on globalCOAL.
PRICES
A May South African cargo was bid at USD 103.25, down 25 cents with no offer
An April DES ARA cargo was offered at USD 98.00, unchanged
A May DES cargo was bid at USD 96.50 and offered at USD 98.90, down 40 cents
An April FOB Newcastle trade at USD 105 a tonne on globalCOAL was seen as a sign of current weakness because the last trade three weeks ago was at USD 120.
Australian producers usually try to defend the visible Newcastle prices in the run up to annual term contract talks with Japanese utilities and these have only just started. Xstrata is seeking at least USD 120 and hoping for USD 125, a level which may be unattainable with spot prices considerably below that.
FOB Richards Bay prices have come under less pressure because supply remains tight and stockpiles low but South African prices have followed the general trend down since the start of the year.
Source - Reuters
Reuters reported that prompt physical steam coal prices fell slightly by around 25 cents a tonne on Friday as buyers pulled back and in line with weaker oil values. Brent crude fell 57 cents to USD 124.77 a barrel on Friday after key US jobs data beat expectations, lifting the dollar broadly to multi month highs against other currencies.
TRADES
An April loading Newcastle cargo traded at USD 105.00 a tonne on globalCOAL.
PRICES
A May South African cargo was bid at USD 103.25, down 25 cents with no offer
An April DES ARA cargo was offered at USD 98.00, unchanged
A May DES cargo was bid at USD 96.50 and offered at USD 98.90, down 40 cents
An April FOB Newcastle trade at USD 105 a tonne on globalCOAL was seen as a sign of current weakness because the last trade three weeks ago was at USD 120.
Australian producers usually try to defend the visible Newcastle prices in the run up to annual term contract talks with Japanese utilities and these have only just started. Xstrata is seeking at least USD 120 and hoping for USD 125, a level which may be unattainable with spot prices considerably below that.
FOB Richards Bay prices have come under less pressure because supply remains tight and stockpiles low but South African prices have followed the general trend down since the start of the year.
Source - Reuters
Coking coal prices for April to June quarter down by 12pct QoQ
Saturday, 10 Mar 2012
Nikkei reported that Japanese steelmakers have reached an agreement with two major suppliers that cuts the prices of coking coal shipped in the April to June period to USD 206 per tonne, roughly 12% lower than in the January to March quarter.
As per report, Canada's Teck Resources Ltd and Rio Tinto Plc signed on to the deal, but Anglo American Plc is believed to be holding out for USD 210 a tonne.
The April to June 2012 price is down some 40% from the same period last year, when coking coal hit a record USD 330 dollars per tonne after winter rains temporarily halted shipments from eastern Australia. Since then, Australian shipments have resumed and steel production has declined due to worldwide economic uncertainties.
Source - The Nikkei
Nikkei reported that Japanese steelmakers have reached an agreement with two major suppliers that cuts the prices of coking coal shipped in the April to June period to USD 206 per tonne, roughly 12% lower than in the January to March quarter.
As per report, Canada's Teck Resources Ltd and Rio Tinto Plc signed on to the deal, but Anglo American Plc is believed to be holding out for USD 210 a tonne.
The April to June 2012 price is down some 40% from the same period last year, when coking coal hit a record USD 330 dollars per tonne after winter rains temporarily halted shipments from eastern Australia. Since then, Australian shipments have resumed and steel production has declined due to worldwide economic uncertainties.
Source - The Nikkei
Friday, March 9, 2012
Companies may lose licence for going slow on coal blocks
Fri, 09 Mar 2012
ET reported that TATA Power, Reliance Power, ArcelorMittal, Jindal Steel and Power and Monnet Ispat & Energy are among 60 companies that face risk of cancellation of mining licenses for being slow in exploration of coal blocks.
A review committee headed by coal ministry's additional secretary Ms Zohra Chatterjee has recommended issuing 'show-cause notices' for 58 blocks asking for reasons why mining licenses should not be revoked. A coal ministry official said appropriate action would be initiated against companies that are not able to justify the delay.
The official said that "We are reviewing allotment to non-serious companies that are simply sitting on the blocks. Some allottees are yet to start any activities on the site. Some blocks are delayed due to problems in land acquisition, delayed regulatory clearances, local agitation and law and order issues.”
The companies include Hindalco Industries, TATA Sponge, Electro Steel Casting, MMTC, National Aluminium Co Ltd and power and mining utilities of Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Tamil Nadu.
Coal ministry's latest review found that only 29 of 195 allotted coal blocks have started production while progress at 90 blocks was found dissatisfactory as critical milestones like acquisition of land, forest clearances and execution of mining lease were not achieved for various reasons.
Captive mines are expected to generate just about 36 million tonnes by this fiscal against targeted 81 million tonnes, scaled down from 104 million tonnes after mid-term review by the Planning Commission.
Caution notices will be issued to about 28 companies, including National Thermal Power Corporation, Steel Authority of India, Jai Prakash Associates, Jindal Steel & Power and GVK Power, for slow progress at 32 blocks.
The committee has also advised owners of another 58 blocks to follow up aggressively with the environment ministry for securing clearances. The committee also recommended de-allocation of two lignite blocks.
The government has till date revoked mining licenses for 23 captive coal blocks that were later allotted to Coal India Ltd.
Source - Economic Times
ET reported that TATA Power, Reliance Power, ArcelorMittal, Jindal Steel and Power and Monnet Ispat & Energy are among 60 companies that face risk of cancellation of mining licenses for being slow in exploration of coal blocks.
A review committee headed by coal ministry's additional secretary Ms Zohra Chatterjee has recommended issuing 'show-cause notices' for 58 blocks asking for reasons why mining licenses should not be revoked. A coal ministry official said appropriate action would be initiated against companies that are not able to justify the delay.
The official said that "We are reviewing allotment to non-serious companies that are simply sitting on the blocks. Some allottees are yet to start any activities on the site. Some blocks are delayed due to problems in land acquisition, delayed regulatory clearances, local agitation and law and order issues.”
The companies include Hindalco Industries, TATA Sponge, Electro Steel Casting, MMTC, National Aluminium Co Ltd and power and mining utilities of Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Tamil Nadu.
Coal ministry's latest review found that only 29 of 195 allotted coal blocks have started production while progress at 90 blocks was found dissatisfactory as critical milestones like acquisition of land, forest clearances and execution of mining lease were not achieved for various reasons.
Captive mines are expected to generate just about 36 million tonnes by this fiscal against targeted 81 million tonnes, scaled down from 104 million tonnes after mid-term review by the Planning Commission.
Caution notices will be issued to about 28 companies, including National Thermal Power Corporation, Steel Authority of India, Jai Prakash Associates, Jindal Steel & Power and GVK Power, for slow progress at 32 blocks.
The committee has also advised owners of another 58 blocks to follow up aggressively with the environment ministry for securing clearances. The committee also recommended de-allocation of two lignite blocks.
The government has till date revoked mining licenses for 23 captive coal blocks that were later allotted to Coal India Ltd.
Source - Economic Times
Euro coal prices rise slightly with oil
Friday, 09 Mar 2012
Reuters reported that prompt physical coal prices rose slightly by 20 to 75 US cents a tonne on Wednesday with stronger oil and the euro's gains but activity was muted and no fresh physical trades were reported.
Portugal's EDP is tendering for several cargoes of US or Colombian coal for 2012 delivery and is expected to award by early next week but otherwise end-user buying has been quiet and below the radar, suppliers said.
Utility traders continue to quietly shed unwanted cargoes still arriving into Europe and there is limited buying of prompt material to store until Q4 to take advantage of the current contango.
There might be more stockpile space available at terminals in ARA during the spring months for leasing by traders and banks which are not usual terminal customers but this would depend on what the utilities themselves need.
Source - Reuters
Reuters reported that prompt physical coal prices rose slightly by 20 to 75 US cents a tonne on Wednesday with stronger oil and the euro's gains but activity was muted and no fresh physical trades were reported.
Portugal's EDP is tendering for several cargoes of US or Colombian coal for 2012 delivery and is expected to award by early next week but otherwise end-user buying has been quiet and below the radar, suppliers said.
Utility traders continue to quietly shed unwanted cargoes still arriving into Europe and there is limited buying of prompt material to store until Q4 to take advantage of the current contango.
There might be more stockpile space available at terminals in ARA during the spring months for leasing by traders and banks which are not usual terminal customers but this would depend on what the utilities themselves need.
Source - Reuters
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