Anglo to invest $770m in Brazil iron ore port with Batista’s LLX

Anglo American Plc, the world’s fifth-largest base-metals producer by market value, agreed to invest as much as 1.3 billion reais ($770 million) in its iron- ore port project with billionaire Eike Batista’s LLX Logistica SA to export the mineral from Brazil.
Under a revised 25-year agreement, Anglo will pay $7.10 for each metric ton of iron ore shipped from the Porto Acu joint venture, LLX said in a regulatory filing yesterday. The accord will generate $190 million of annual revenue for LLX, according to the filing. London-based Anglo owns 49 percent of the port.
Anglo, suffering delays and cost overruns at its Minas Rio development in Brazil, is spending about $17 billion to expand production of copper, iron ore, nickel and other metals as demand from Asian nations grows. The Minas Rio iron-ore complex, its biggest project, includes a mine, a processing plant and a 326-mile (525-kilometer) pipeline that will transport the mineral to Porto Acu.
The company secured a key license from Brazil this month allowing it to progress with building Minas Rio after delays in getting permits and design changes increased costs. It said in July the cost of the development may rise by about a fifth to $4.6 billion because of the delays.
Anglo said Dec. 10 that it will start work on the project in March and deliver its first ore 27 to 30 months after that. It had initially planned to start mining this year.
Anglo rose 1.7 percent to 3,364 pence in London trading at 11 a.m. Before today, it climbed 22 percent this year, less than a 28 percent rally in the FTSE All-Share Mining Index.
News via Bloombert by Alex Emery in Lima at aemery1@bloomberg.net.
Tag : Business Exchange, Anglo American Plc. Eike Batista’s LLX Logistica SA, iron ore port

Iron ore stockpiles at major ports in China up slightly- 29 Dec 10

Till the close of last week Dec 24th, the imported iron ore stockpiles at China major ports posted at 72.86 million tonnes up 0.53 million tonnes from last week 72.33 million tonnes, out of which Brazilian ore stockpiles 18.28 million tonnes down 310,000 tonnes, Australian ore inventory 26.73 million tonnes up 60,000 tonnes and Indian ore stock 12 million tonnes up 120,000 from that of last week.

Wednesday, December 29, 2010 10:49
For more information http://www.irsteel.com/newsdetail-8447-en.html

India Minister: Final Decision on POSCO Project by January-End

Courtsey news via The wall street journal by Saurabh Chaturvedi and Satish Sarangarajan
NEW DELHI -- India's Ministry of Environment and Forests will make a final decision on Posco's proposed steel plant in eastern India by the end of January, Environment Minister Jairam Ramesh said Wednesday.
Posco, the world's third-largest steelmaker, signed a pact with the government of Orissa state in June 2005 to build the integrated steel plant. At more than $10 billion, it was billed as the biggest foreign direct investment in India.
But the project, like those of ArcelorMittal and Tata Steel Ltd., has been delayed due to tough forest laws and stiff opposition from local people unwilling to sell their land.
The Korean steel giant's planned investment includes a 12 million metric ton a year steel mill, a captive power plant and a port on about 4,000 acres of land in Orissa's Jagatsinghpur district. Much of that land is in forests.
"We will be able to take a final decision by [the] end of January on the future of POSCO's integrated project in Orissa. The project includes three components; mining, steel making and the development of a port. We are hopeful of a final decision on all three segments," Mr. Ramesh told reporters on the sidelines of a conference.
Earlier Wednesday, local newspaper DNA, citing unnamed sources, reported that the environment ministry had cleared the Posco project.
"These reports are speculative, premature and baseless," Mr. Ramesh said.
A cumbersome regulatory approval process and land acquisition issues have hindered big industrial and infrastructure projects in India. According to the steel ministry, some $80 billion of investment for steel projects is stuck in various stages of the regulatory approval cycle.
The domestic steel industry is concerned about meeting the expected 10% annual growth in demand over the next decade and India's steel imports are rising rapidly. The country needs new plants to help meet the booming demand, particularly from the automobile and construction sectors.
Several foreign steelmakers have tried to capitalize on India's growth prospects, including Japan's Kobe Steel Ltd. and JFE Steel Ltd.
Kobe Steel recently signed pacts with Steel Authority of India Ltd. and Essar Steel Ltd. to explore the possibility of a joint venture, while JFE Steel last year acquired a nearly 15% stake in JSW Steel Ltd.
POSCO has also signed a pact with SAIL to set up a joint venture in India.
Russian steelmaker OAO Severstal has signed an initial pact with iron ore miner NMDC Ltd. to set up an India joint venture in the southern Indian state of Karnataka.
In a report earlier Wednesday, local newspaper DNA, citing unnamed sources, said the ministry had cleared Posco's India project.
"These reports are speculative, premature and baseless," Mr. Ramesh told reporters on the sidelines of a press conference.
Posco signed a pact with the government of Orissa in east India some six years ago to build the integrated steel plant at an investment of about $12 billion.

Tag : Posco, steel plant, Government of Orissa, Ministry of Environment and Forests

Spot iron ore prices unmoved at $175-177 cfr

Courtsey news via Metal Bulletin Ltd.
Shanghai 30 December 2010 08:15
Spot prices for 63.5% Fe Indian fines remained at $175-177 per tonne cfr main Chinese ports on Thursday, December,2010 with most market participants still on the sidelines. Mainstream offers were still unchanged at $176-178 per tonnes cfr.
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Courtsey news via Metal Bulletin Ltd.
Spot iron ore prices stable at $175-177 cfr on MondayShanghai 27 December 2010 08:03
Spot prices for 63.5% Indian fines stood unchanged at $175-177 cfr Chinese ports on the first working day after Christmas. Offers from Indian miners for 63.5% fines have reached nearly $180 cfr, while offers from traders stand at around $178 cfr. “Now that iron ore prices have reached...
For more details
http://www.metalbulletin.com/Article/2741741/Iron/Spot-iron-ore-prices-stable-at-175-177-cfr-on-Monday.html
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Iron Ore-China demand slower, India traders hope for $180/T
Courtsey news via Thomson Reuters, Editing by Ramthan Hussain
Fri Dec 24, 2010 7:57am GMT
China mills curtail buying on uncertain price outlook * India traders hope for $180/T C&F for 63.5 grade next week * Swap market inactive on Christmas eve By Ruchira Singh and Ruby Lian NEW DELHI/SHANGHAI, Dec 24 (Reuters) - Asian iron ore prices were stable on Friday as Chinese mills curtailed purchases, though Indian traders saw more upside on expectations that China may need to stock up in the weeks before the Lunar New Year holidays in February. "There is no major bulk buying going on maybe because it is the end of the year," said Ranjan Chhibba, an iron ore and coal trader in New Delhi. "But because of low availability, prices may stay firm." Offers of Indian ore fines with 63.5 percent iron content held at $177-179 per tonne on Friday, CFR delivered to China, unchanged since the middle of this week, traders said. "It could go up to $180 a tonne next week, but whether it is sustainable or not, will have to be seen," said Dhruv Goel of trading firm SKTC in east India. Two major iron ore indexes stayed at seven-month highs, but moved in different directions on Thursday, reflecting mixed views on the near-term market trend.
The Metal Bulletin Iron Ore Index .IO62-CNO=MB rose 62 cents to $168.59 per tonne on Thursday, while the Steel Index 62 percent .IO62-CNI=SI slipped to $170.7 per tonne.
"Trading has been relatively weak late this week as buyers are waiting for a clearer price trend after the new year holiday," said an iron ore trader in eastern China.
TIGHT CAPITAL FOR STEEL MILLS
Many steel mills still aim to buy more stocks for holiday consumption, while the tightening capital crunch has curbed big purchases for materials already sitting at ports, traders in China said.
"Steel mills are facing a dilemma -- they don't have much money to buy spot materials, but they also don't want to take the risk of importing materials at high prices, despite lower capital pressure in buying via letter of credit," said an iron ore trader in Shanghai. The iron ore swap market stayed inactive as it has been for most of this week with may traders on holidays, and is seen reviving only in the first week of January. The Baltic Exchange's main sea freight index , which tracks rates to ship dry commodities including iron ore, cement, grain, coal and fertiliser, fell to a five-month low of 1,795 points on Thursday as a slowdown in cargo business hit sentiment. [ID:nLDE6BM1J5]

Tata Steel Studying Rio Tinto Bid for Riversdale

India Business News December 24, 2010, 5:29 A.M. ET By Ashutosh Joshi and Saurabh Chaturvedi
MUMBAI -- Tata Steel Ltd. Friday said it is studying Rio Tinto Ltd.'s 3.9 billion Australian dollar ($3.91 billion) takeover offer for Riversdale Mining Ltd., in which the Indian company owns a 24% stake, a day after a consortium of Indian state-run companies appointed an advisor for a counter-bid.In a regulatory filing, Tata Steel said it would "evaluate the takeover bid in the context of other alternatives available to Tata Steel." It didn't say what the other alternatives were.Meanwhile, the chairman of Indian consortium International Coal Ventures Ltd. denied that the group had initiated talks with Tata Steel for a possible counter-bid for Sydney-based Riversdale."No. Any decision on bidding will be taken after the merchant banker's report," ICVL Chairman C.S. Verma said.ICVL -- a joint venture between Steel Authority of India Ltd., NTPC Ltd., NMDC Ltd., Rashtriya Ispat Nigam Ltd. and Coal India -- Thursday named Citibank as its merchant banker to advise on a possible counter-bid for Riversdale.If the Indian consortium decides to go ahead, it will have to top Rio Tinto's offer price of 16 Australian dollar a share for the Mozambique-focused miner.Rio Tinto's cash offer was endorsed by Riversdale's board Thursday after it improved its bid from an original indicative offer of A$15 a share announced on Dec. 6.But analysts said the diversified mining giant may have to again sweeten its offer. Two major shareholders told Dow Jones Newswires on Dec. 6 that they would be unlikely to sell for less than A$20.Mr. Verma said ICVL has enough time to decide whether or not to make a counter-bid as a Riversdale shareholders' meeting on Rio Tinto's offer will only take place after 30 days.Citibank will submit its report within two weeks."Let us wait for the report of our merchant banker, and immediately after that we will call a board meeting of ICVL," Mr. Verma said.Separately, Indian Steel Minister Virbhadra Singh said Friday that ICVL should buy some coal mines before the end of this financial year in March. ICVL was specifically created (in May 2009) to acquire coal assets abroad, but it hasn't struck any deals yet."It has been some time since its incorporation. It is high time for them to show results," Mr. Singh told Dow Jones Newswires.However, he didn't name Riversdale as a potential target.Riversdale has 13 billion metric tons in coking and thermal coal reserves in its Benga and Zambeze projects in the southern African country of Mozambique. Acquiring the miner would help Indian companies secure much-needed coal supplies, as production in India falls well short of demand.Steel and mining analyst A.S Feroze said it would be difficult for Tata Steel to join hands with the consortium of five-state run companies.
"Theoretically I see difficulty in it. ICVL is a consortium and taking a decision after talking to the partners will not be a smooth process," Mr. Feroze said.But he added that it wouldn't be hard for either Tata Steel or ICVL to finance a counter-bid as bankers would be willing to provide funds "if it's a good deal."In a separate statement to the Bombay Stock Exchange, Tata Steel said it has got shareholders' approval to raise long-term finances, though it didn't provide a reason for the move.India's coal demand is forecast to rise to 713.24 million tons next financial year beginning April 1, when supply will likely be 629.91 million tons. To meet the shortfall and secure supplies, state-run and private companies are scouting for assets in places such as Africa, Indonesia and Australia.In a regulatory filing, Tata Steel said it would "evaluate the takeover bid in the context of other alternatives available to Tata Steel." It didn't say what the other alternatives were.Meanwhile, the chairman of Indian consortium International Coal Ventures Ltd. denied that the group had initiated talks with Tata Steel for a possible counter-bid for Sydney-based Riversdale."No.. any decision on bidding will be taken after the merchant bankers' report," ICVL Chairman C.S. Verma said.ICVL -- a joint venture between Steel Authority of India Ltd., NTPC Ltd., NMDC Ltd., Rashtriya Ispat Nigam Ltd. and Coal India -- Thursday named Citibank as its merchant banker to advise on a possible counter-bid for Riversdale.If the Indian consortium decides to go ahead, it will have to top Rio Tinto's offer price of A$16 a share for the Mozambique-focused miner.Rio Tinto's cash offer was endorsed by Riversdale's board Thursday after it improved its bid from an original indicative offer of A$15 a share announced on Dec. 6.But analysts said the diversified mining giant may have to again sweeten its offer. Two major shareholders told Dow Jones Newswires on Dec. 6 that they would be unlikely to sell for less than $20 Australian dollar.Riversdale has 13 billion metric tons in coking and thermal coal reserves in its Benga and Zambeze projects in the southern African country of Mozambique. Acquiring the miner would help Indian companies secure much-needed coal supplies, as production in India falls well short of demand.Steel and mining analyst A.S Feroze said it would be difficult for Tata Steel to join hands with the consortium of five-state run companies."Theorotically I see difficulty in it. ICVL is a consortium and taking a decision after talking to the partners will not be a smooth process," Mr. Feroze said.But he added that it wouldn't be hard for either Tata Steel or ICVL to finance a counter-bid as bankers would be willing to provide funds "if it's a good deal."
In a separate statement to the Bombay Stock Exchange, Tata Steel said it has got shareholders' approval to raise long-term finances, though it didn't provide a reason for the move.
India's coal demand is forecast to rise to 713.24 million tons next financial year beginning April 1, when supply will likely be 629.91 million tons. To meet the shortfall and secure supplies, state-run and private companies are scouting for assets in places such as Africa, Indonesia and Australia.
Tag : Tata steel, Rio Tinto, Riversdale, Bid, ICVL

Commodity Minerals, Exports News: Iron ore prices set to rise as India's exports slow in Nov2010

Courtsey news by: G. Chandrashekhar Mumbai, Dec. 20, The Hindu Business Line
The decline in India's iron ore exports in recent months is generally attributed to the Karnataka Government's imposition of ban on movement outside the State and export from out of the ten ports.The embargo in July followed allegations of illegal mining. Slowdown in shipments from India has surely had an impact on world iron ore spot market prices which have firmed.Karnataka ports shipped out about 15.2 million tonnes of iron ore in 2008, which declined to 12.2 mt the following year. Tamil Nadu ports also handle some material from Karnataka and the export shipments totalled some 8 mt in 2009.From the time the ban was imposed, iron ore shipments from the two States have all but dried up. Extended South-West monsoon has also to some extent affected shipment volumes.However, despite ban imposed by Karnataka and slowdown due to seasonal factors, overall seaborne supply from India is down only 9 per cent in the first ten months of the year, although exports in the third quarter fell 37 per cent year-on-year and are 31 per cent down year-on-year in October-November, according to the latest Macquarie Research report.Impact on volumePointing out other factors that have impacted export volume, the report said clearances are getting considerably slow because of rigorous and complex documentation system stipulated by many States to ensure traceability of ore and to ensure taxes have been paid. Until exporters are able to meet the rigours of the documentation system or find a way to work around it, export volumes are unlikely to improve dramatically in the next few months. However, the good news is that some ore which was previously exported is now being pelletised and consumed within the country as steel demand continues to grow rapidly.According to Macquarie Research, relatively high steel prices (compared with international levels) are allowing the Indian steel mills to pay more for material thus, making export arbitrage negative.

Domestic demand for steel is widely expected to expand in the coming years given the robust economic growth and booming activity in the construction sector covering infrastructure and housing in the main. In other words, iron ore is likely to be increasingly utilised within the country, while availability for export is likely to shrink progressively.What to expect in 2011? Volume-wise Indian exports may rise in the coming months with shipments from Goa leading the way. However, spot market availability will still continue to remain tight as a result of which smaller Chinese mills which are expected to ramp up production in 2011 will have to compete aggressively for lesser supply, Macquarie remarked.Incidentally, any gain in Indian seaborne volumes may be offset by a fall in Brazilian exports due to rainy season during the first quarter. For past eight years, the first quarter shipments had fallen on quarter-on-quarter basis and this year could be no exception. Already, January cargoes are said to be pushed back as early rains have hampered ore availability.All these developments point to tightening of the ore market and further firming spot prices. There is a strong chance of a price spike towards $200 a tonne early next year as ex-China purchases come back into the market to secure material ahead of seasonally strong Q2 production in the northern hemisphere, Macquarie pointed out.
For more details visit : http://www.thehindubusinessline.com/2010/12/21/stories/2010122152701600.htm
Tag : India iron ore exports, Karnataka Government, iron ore spot market prices

Iron ore price negotiations - Chinese steelmakers seek new model on changing market

It is reported that China leading steel mills gradually accept the fact that traditional iron ore benchmark system no longer exists. They are seeking for a more reasonable mechanism pegged to steel price while keeping a close eye on a possible turning point of iron ore supply demand relationships.China appetite for iron ore is cooling down. Mr Luo Tiejun vice director of MIIT raw material section said on newly held Mysteel annual conference that China steel output and demand growth would be eased. Data also show that China crude output growth in the first ten month is far below that of Europe, Japan and Korea.The steel market turns sluggish with limited scope to go either up or down and denting demands for iron ore.Mr Gao Bo Mysteel senior researcher said “China iron ore imports hit 503 million tonnes in the first ten months this year down 8% from corresponding period last year. We expect an annual import of around 600 million tonnes, a bit lower than last year, indicating it will be the first time for China iron ore imports to fall since 2007.”Mr Xu Lejiang Baosteel Group Chairman reiterated that interim supply demand imbalance and the Big Three’s monopoly caused global iron ore to rocket for the past years.Mr Wu Dongying head of Baosteel Economics & Management Institute said “With the slowdown of China steel industry, the turning point of iron ore supply demand relationship is sure to approach. We can expect an oversupply in global iron ore market.”Mr Gao Bo said Chinese steelmakers also work out countermeasures against high iron ore risks. They increase the use ratio of domestic iron ores to wean off dependency on imports. They diversify import sources, including South Africa, Ukraine, Indonesia, Chile, etc. They also put weight on foreign mining interests by overseas investment.As for the iron ore pricing system, Mr Xu Lejiang expressed earlier that current quarterly mechanism is acceptable yet it needs to be further improved. CISA also claimed that it is necessary to study a new pricing model oriented to steel prices.This idea is echoed by related government officials. Mr Luo Tiejie expressed that although current quarterly model reduces market risks by dampening speculation, the adopted index is so easy to be manipulated that it has affected the healthy development of Chinese industry. Only when iron ore and steel form a reasonable price relation can a stable industry chain develop.(Sourced from MySteel.net Thursday, 23 Dec 2010)
Tag : Real time access to China steel news, Iron ore price negotiations, Chinese

Orissa submits response on Mines ministry's guidelines on JVs, MoUs

Courtsey news via Business Standard Reporter / Kolkata/ Bhubaneswar December 18, 2010, 0:10 IST
Pitches for recommending mineral concession cases only on merit.The Orissa government has submitted its response to the Union ministry of mines on the draft guidelines on joint ventures (JVs) and MoUs (Memorandum of Understanding) issued in September this year by the ministry."In our response, we have stated that in non-notified mining lease areas, the mineral concession cases should be recommended only on merit rather than on 'first in time' basis. We have broadly agreed with the other points stated by the ministry in its draft guidelines on JVs/MoUs”, a top official source told Business Standard.On signing of MoUs, the official said, "There has been no indiscriminate signing of MoUs by the state government. While recommending mineral concession case for an MoU signed company, we have ensured that the company does value addition within the state. Besides, the interests of the state in general and the people to be displaced in particular are factored in”, the source added.Apart from Orissa, Goa is the only other state to have sent its response to the ministry's guidelines on JVs/MoUs.In its draft guidelines on JVs/MoUs, the Union ministry of mines had stated that the signing of a large number of MoUs indiscriminately and without considering what the other party is bringing to the table, is not compatible with the use of the MoU as ‘special reasons’ for the purpose of Section 11 (5) of the MMDR Act.An MoU for exploitation of a mineral resource at a specific location (i.e. specific lease area) in anticipation of a concession or a reservation will be deemed to be incompatible with principles of fair play and equity because it will give that MoU applicant an unfair advantage in relation to other MoU applicants who apply for the same area.The ministry was of the view that it would contradict the policy of ‘first in time’ for non-notified areas or ‘most meritorious’ for notified areas, as the case may be, the Ministry of Mines had stated categorically in its guidelines.In case MoU/JV is treated as special reasons, it is necessary to make its provisions enforceable, and as such the state government must send all details of the MoU/JV along with a proposal to make it relating to the MoUs/JVs in the context of their application in both reservation and concession cases.It may be noted that while the above guidelines elaborate the process and procedures, they do not specify the policy and content of the MoUs since they have to be state specific. In order to enable this to be done, it will be necessary for the states to issue a comprehensive circular and notify it, specifying the policy and content, and including therein the details of these guidelines in so far as procedures and consequences are concerned, subject to any variation that the state government may consider desirable."The state governments will also need to enter into supplementary MoUs with existing MoU companies to enable the conditionalities to be fulfilled, and while doing so may ensure that the process of entering into supplementary MoUs filters out routine MoUs that may have been entered into earlier. The list of all qualifying MoUs (including supplementary MoUs) may then be put up by the state government on its website", the ministry had stated in its guidelines.
For more details visit
http://www.business-standard.com/india/news/orissa-submits-responsemines-ministrys-guidelinesjvs-mous/418717/
Tag : Orissa government, Union ministry of mines, MoU, MMDR Act

Kaolin / China Clay

Kaolin (Washed China clay)
Kaolinite is a clay mineral. It is a layered silicate mineral, with one tetrahedral sheet linked through oxygen atoms to one octahedral sheet of alumina octahedra. Rocks that are rich in kaolinite are known as china clay, white clay, or kaolin.
Photograph : China clay mines in Chittorgarh Rajasthan

Uses of Kaolin( Washed China clay)
Kaolin is used in ceramics, medicine, coated paper, as a food additive, in toothpaste, as a light diffusing material in white incandescent light bulbs, and in cosmetics. It is generally the main component in porcelain.
It is also used in paint to extend titanium dioxide (TiO2) and modify gloss levels; in rubber for semi-reinforcing properties; and in adhesives to modify rheology.
Kaolin was also used in the production of common pipes for centuries in Europe and Asia.
The largest use is in the production of paper, including ensuring the gloss on some grades of paper. Commercial grades of kaolin are supplied and transported as dry powder, semi-dry noodle or as liquid slurry.
Kaolinite can contain very small traces of uranium and thorium, and is therefore useful in radiological dating. While a single magazine made using kaolin does not contain enough radioactive material to be detected by a security-oriented monitor, this does result in truckloads of high end glossy paper occasionally tripping an overly-sensitive radiation monitor.
Kaolinite has also seen some use in organic farming, as a spray applied to crops to deter insect damage, and in the case of apples, to prevent sun scald.

China clay deposits in India
In India, china clay deposits are found mainly in Rajasthan and Gujarat state. In Rajasthan pure white brighness china clay found in Chittorgarh district. In Gujarat, Bhuj, Kheda are deposits area.
China clay consumption market:
Washed china clay, kaolin consumption market is Gujarat. Morbi, Wankaner, Dhuva, and Thangadh, is famous ceramics zone in India.