Kodeco Invites Bidders to Provide Jack UP Drilling Unit

Thursday, 10 February 2011 15:49

Kodeco Energy Co. Ltd, a Producion Sharing Contract (PSC) of BP Migas invites interested and qualified bidders to participate in tender to provide one cantilever type Offshore Jack-up Drilling Unit complete with top drive.
The tender will expire in 16 February 2011.
Besides jack-up drilling, Kodeco also tender to provide Associated Expert Drilling Services to drill, complete, workover and test offshore fourteen (14) to thirty (30) development and exploration wells.

The period of contract is expected for 12 to 24 months commencing second quarter 2011.
The wells will consist of development and exploration wells having vertical to extended reach and horizontal profiles.
(sourced:theindonesiatoday)

INDONESIA allowed 60 coal trading companies to export coal

Wed, Feb09, 2011
A temporary ban imposed on coal traders in January has lifted this week. As of today 60 coal trading companies were allowed to resume coal shipments the export market. Since 5th January 2011, all the coal exports through coal trading companies were banned due to lack of supporting regulations. Indonesia's trade ministry instructed surveyors to halt temporarily issuing surveyor reports to traders in the process of reapplying for trading permits under a new coal and mining law.
Minister of energy has signed a new regulation on 4th February allowing director of general of coal and mineral to sign and issue IUP OP KPP to traders.
According to media reports, director general of coal and minerals has already signed 60 permits and forwarded the list of qualified trading companies to trade department. On receipt of the list of IUPOPKPP holders, trade department has instructed independent surveyors to conduct the survey which is one the requirement to apply the export permit from customs office.
“We started pre-shipment survey for coal that belongs to coal traders”, said an independent surveyor.

Indonesian coal mining association claimed that, around 3.5 million tons of coal piled at loading ports due to exports ban on coal traders since early January, and may be cleared within this month. Some coal traders have declared force majeure and some postponed shipments due to new ban coal traders early January. Around 60 to 70 vessels was also anchored in coal loading anchorages and waiting for coal since early January 2011, said stevedoring and shipping agent.
Traders optimized that, they can clear delayed cargoes as soon as possible and other industries, which are integrated to coal loading and transportation also will return to normal after slowing down for almost one month.

Indonesian coal reference price has also jumped significantly in February compared with January 2011. Energy Ministry has declared February ICRP at US$ 127.05 per metric ton, which was 13.03 percent higher than January HBA of US$ 112.40.(CS)

(sourced:coalspot)
If you believe an article violates your rights or the rights of others, please contact us.

Wed,Feb09,20111

The Bayur Block, sub-block Tani Bakti and South Purwajaya use core drilling method HQ-3 with grid pattern ranged 50 metres. The reserve calculation on the block is still in progress.
For the Loajanan block, the company will continue its geological mapping to decide the mine potential sub blocks. The company still conducts due diligence to drill block Separi.
“All blocks have been approved by Minister of Energy & Mineral Resource for the Exclusive Mining Rights (PKP2B) for production granted to PT Insani Baraperkasa," Corporate Secretary Lenny S.C. said.
Total exploration cost reaches US$1.12 million as of January.
KKGI is owned by Goodwin Investment Private Ltd (17.53%), PT Optima Investama (16.27%), OCBC Securities Pte Ltd (15.80%), UOB Khay Hian Ltd (11.29%), and Dunway Holdings Ltd (6%).
(sourced:theindonesiatoday)
Tag:Coal company,PT Resource Alam Indonesia Tbk(KKGI),RAIN Group,explored Bayur,Perangat,Loajanan blocks,January 2011,PT Insani Baraperkasa,blocks,East Kalimantan

Indonesian Mining Industry to Grow at a CAGR of 4.8% during 2010-15

Research and Markets highlighted on its latest research report that coal dominates the industry with 84% of the total market share in Indonesia, followed by nonmetallic minerals.
The nonmetallic mineral category is dominated primarily by cement, while the metallic mineral segment is dominated by bauxite and copper.

Fuelled by strong economic growth, the Indonesian mining industry mineral production, in volume terms, was estimated to have grown at a CAGR of 11% during 2004-09.
Expansion of key endmarkets such as construction, manufacturing and power will continue to drive demand for minerals. The Indonesian mining industry is estimated to grow at a CAGR of 4.8% during 2010-15.
(soucred:theindonesiatoday)

Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for May' 2012, US$ 102.12 per ton

7 May, 2012
Indonesian HBA fall again in May'2012


Indonesian HBA fall again to lowest level since January 2011 in May 2012. The monthly coal reference price for coal sales in May fell 3.30%, the lowest dropped in last 17 Months.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price for May 2012 at US$ 102.12 per ton, US$ 3.49  lower than April 2012 Price.

This coal benchmark price was calculated based on calorific value of 6,322 kcal/kg (GAR), stated to be using formula based on the April 2012 index average of ICI-1 (Indonesia Coal Index) 25%, Platts-1 25%, NEX (Newcastle Export Index) 25%, and GC (globalCoal Index) 25%.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR)  6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and  delivery free on Board (FOB) Vessel basis  and applicable for spot contract, delivery between 1 - 31 May 2012.

The government of Indonesia has been publishing a monthly coal reference price (HBA & HPB) since January 2009 to be used by coal producers for all spot and term contracts. However the full implementation of HBA has started only since September 2011.

The May 2012 HBA was 13.17% or $15.49 lower on Y-o-Y basis.

The price was only valid for the spot price (loading before 31 May 2012), while as for term price (up to 12 months supplies), the average reference price (HPB) of the previous 3 months will be used to determine the selling price. (50% of latest available month HPB, 30% of one month prior HPB and 20% of two months prior HPB).

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are acted as the benchmark and used to calculate other 61 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies have  revised to comply with new coal pricing regulation, which was fully implemented on 23 September 2011.

The Indonesian government is also expecting to introduce a coal export duty for coal in near future. According to officials, the proposal is in discussion among the high level officers to determine the percentage of duty. There will be two different types of duty could be introduced such as lower duty for higher calorific value coal and higher duty for unprocessed lower calorific value.

The government also has recently introduced export duty for unprocessed minerals but coal was missing in the recent regulation. Indonesian coal producers were asked to add value for their product such as washing, crashing, blending and upgrading to have a higher-value product prior to eye on the export market and avoid proposed export ban.

In coming months Indonesian coal industry can see  number of new regulations.

Courtsey sourced www.coalspot.com
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6 April, 2012

INDONESIAN HBA FALL TO LOWEST LEVEL SINCE JANUARY 2011

Indonesian HBA fall to lowest level since January 2011 this month. The monthly coal reference price for coal sales in April fall  by 6.43 percent, the lowest dropped in last 16 Months.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price benchmark for April 2012 at US$ 105.61 per ton, US$ 7.26 lower than March 2012 Price.

This coal benchmark price was calculated coal with calorific value of 6,322 kcal/kg (GAR), stated to be using formula based on the March 2012 index average of ICI-1 (Indonesia Coal Index), Platts-1, NEX (Newcastle Export Index), and GC (globalCoal Index).

Assessment basis of coal price reference was calculated considering coal with GCV (GAR)  6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and  delivery free on Board (FOB) Vessel basis  and applicable for spot contract, delivery between 1 - 30 April 2012.

The government of Indonesia has been publishing a monthly coal reference price (HBA & HPB) since January 2009 to be used by coal producers for all future spot and term contracts. However the full implementation of HBA has started only since September last year.

The price was only valid for the spot price, while as for term price, the average reference price (HPB) of the previous 3 months. (50% of latest available month HPB, 30% of one month prior HPB and 20% of two months prior HPB).

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are acted as the benchmark and used to calculate other 62 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies have  revised to comply with new coal pricing regulation, which was fully implemented on 23 September 2011.

Indonesian government also drafting a regulation to ban coal with calorific value below 5700 kcal/kg on air basis for the export market by 12 January 2014 dried (according to the draft regulation posted on djmbp website). Indonesian coal producers were asked to add value for their product such as washing, crashing, blending and upgrading to have a higher-value product prior to eye on the export market.

Raw coal export will also be restricted once the regulation issued. The government has also issued a regulation (24/2012) which will limit foreign ownership in mines to 49 percent within 10 years of production.

Indonesia also planning to impose a 25 percent export tax on coal and base metals this year, and 50 percent in 2013.

However, we expect this export tax may not be introduced immediately due to the majority of  coal production or exports  (70 - 80 percent of Indonesian total coal production or export) are coming from CCoW holders. Under CCoW agreement which was signed between the coal mine contractors and government was not allowing any new duties or taxes on CCoW holders.

Hence government has to convert CCoW to IUP prior to introduce any new taxes or duties, if government want to enjoy benefits from all the coal exports from Indonesia. However, IUP holders are subject to any new taxes or duties. Hence we expect government will focus first  to convert the CCoW to IUP rather than introducing any new taxes or duties.

The basis for renegotiation is Law No. 4 /2009 on mining, which has changed the mining-concession regime by introducing a new licensing system (IUP). The law replaces mining authorizations (Kuasa Pertambangan or KP) as well as contracts of work (CoWs) and contracts of coal mining work (CCoW or PKP2B).

According to government officials, number of or majority of CCoW holders are willing to convert CCoW to IUP but the discussions are still on the way. The Ministry of Energy & Mineral Resources of Indonesia wants to complete all the conversion by end of this year.

In coming months Indonesian coal industry can see a number of new regulations.

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Thu, 08 March, 2012

Indonesia Coal Benchmark Price gains for second month

Indonesia raised the monthly coal reference price for sales in March by 1.15 percent, the second increase since February.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price benchmark for March 2012 at US$ 112.87 per ton, US$ 1.29 higher than February 2012 Price.

This coal benchmark price was calculated coal with calorific value of 6,322kcal/kg (GAR), stated to be using formula based on the February 2012 index average of ICI-1 (Indonesia Coal Index), Platts-1, NEX (Newcastle Export Index), and GC (globalCoal Index).

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 March 2012.

The government of Indonesia has been publishing a monthly coal reference price (HBA & HPB) since January 2009 to be used by coal producers for all future spot and term contracts.

The March HBA was 7.80 percent lower Y-o-Y.

The price was only valid for the spot price, while as for term price, the average reference price (HPB) of the previous 3 months. (50% of latest available month HPB, 30% of one month prior HPB and 20% of two months prior HPB)

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are acted as the benchmark and used to calculate other 62 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies have revised to comply with new coal pricing regulation, which was fully implemented on 23 September 2011.

Indonesian government also drafting a regulation to ban coal with calorific value below 5700 kcal/kg on air dried (according to the draft regulation posted on djmbp website) basis for the export market by 12 January 2014. Indonesian coal producers were asked to add value for their product such as washing, crashing, blending and upgrading to have a higher-value product prior to eye on the export market.

Raw coal export will also be restricted once the regulation issued. The government has also issued a regulation (24/2012) which will limit foreign ownership in mines to 49 percent within 10 years of production.

In coming months Indonesian coal industry will see a number of new regulations.
Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)
(sourced Coalspot.com)

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Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for Febuary' 2012, US$ 111.58 per ton
Indonesian Coal Price Reference ( HBA) :(US$/MT) : Feb'2011 US$ 111.58 M.T.Assessment
Basis : HBA, Quality, Delivery,
Last Update : Febuary,2012
Source:DJMBP - ESDM, Indonesia

Indonesia has raised the monthly benchmark price for sales in February by for the first time since October.

The Directorate General of Coal and Minerals at the ministry in Jakarta said today in a statement on its website announced that the cost of coal with a gross energy value of 6,322 kilo calories per kilogram was set at USD 111.58 a tonne on FOB basis, up by 2% from USD 109.29 a ton in January,

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)
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Wed, 04 January, 2012

Indonesian Coal Price Reference ( HBA) :(US$/MT) : Jan'2011 US$ 109.29 M.T.Assessment Basis : HBA, Quality, Delivery,
Last Update : Wed, 04 January,2012
Source:DJMBP - ESDM, Indonesia

Ministry of Energy and Mineral Resources of Indonesia has sets the January 2012 coal reference price at US$ 109.29 per ton or US$ 3.38 lower than December 2011 price. The December HBA was sets at US$ 112.67 per mt.

January's HBA is the lowest since January 2011 and 2.99% percent lower than December HBA. January HBA has fallen for the third consecutive month to US$109.29/t, from US$119.24/t in October 2011.

The HBA is the minimum price used for the calculation of taxes for producers pay for all future exports and domestic coal sales. It is calculated using a basket of indices, including the price is a monthly average of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index and the globalCOAL Index from the previous month.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.80%, Ash Content (arb) 15.00% and delivery free on Board (FOB) Vessel supply between 1 – 31 January 2012.

Eight brands of Indonesian coal which are most commonly traded in the market. The price marker is used to calculate other coal types with a quality similar to the coal price markers. For spot sales of 11-month or below 11-month supplies, will use coal price reference from the month of loading or B/L date.

For term contracts, the average of coal price reference for the last three months (from the month of price conclusion) is used to set coal prices for a one-year contract. Supplies are limited to a maximum of 12 months.

For sales in the barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

-------------------------------------------------------------------------------------------
Indonesian Coal Price Reference ( HBA) :(US$/MT) : Dec'2011 US$ 112.67 M.T.Assessment Basis : HBA, Quality, Delivery,
Last Update : Mon, 05 December,2011
Source:DJMBP - ESDM, Indonesia

Indonesian Coal Reference Price (HBA) for December 2011 benchmark dropped 3.4% to US$112.67 per ton FOB Vessel, the second lowest price in recent 12-months period.

The number dropped 3.4% from November 2011 price, and fell 11% from its peak at US$127.05 per ton in February 2011.

The latest price resulted in Indonesian averaged coal price for 2011 at US$118.40 per ton.

Coal reference is based on coal with GCV (GAR) 6,322 kcal/kg, total moisture (arb) 8%, total sulphur 0.8%, ash content 15%, and delivery FOB Vessel.

Thermal coal spot prices in Newcastle Port, Australia---benchmark for Asian market, dropped for the eighth consecutive week to US$111.29 per ton on December 2nd. According to NEWCIndex of globalCOAL, thermal coal slipped from US$111.98 to US$111.29 per ton (calorific value of 6,400 Kcal/Kg) for the week ended December 2nd.

DES ARA Index, benchmark for West Europe, also slipped to US$111.6 per ton from US$112.18 in the previous week, while RB Index---which tracks coal prices in Richard Bay Port, South Africa, a benchmark for South Asian and European market, gained slightly to US$102.81 per ton (from US$101.72 per ton).

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)
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Indonesian Coal Price Reference fell again

Friday, 11 November, 2011

Ministry of Energy and Mineral Resources of Indonesia has set the November 2011 Indonesian Coal Reference Price for thermal coal at US$ 116.65 per ton, which is 2.17percent lesser than October 2011 price.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts.

The November HBA is 22.13 percent higher compared to the same month in 2010.

Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX) and the New Castle Global Coal Index (GC) from the previous month.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 30 November 2011.

Any deliver of cargo after 30 November, must be used the particular month's HPB unless the deliveries fall under term contract.

The November HBA is a marginal drop of US$ 2.59 per ton or down 2.17 percent compared with October 2011 Coal reference price. Government has taken around 10 days to release this month HBA.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 53coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price has been established to fulfill the requirement of mining law 04/2009 and the ministerial decree no.17/2010 and also aims to increase government revenue from royalties from coal producers.

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)

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Tuesday, 04 October, 2011

Indonesian Coal Price Reference ( HBA) :(US$/MT): Oct'2011 US$ 119.24 M.T.Assessment Basis : HBA, Quality, Delivery,
Last Update : Tue, 04 October,2011
Source:DJMBP - ESDM, Indonesia

Indonesia raised the monthly reference price for sales in October by 2.56 percent, the first increase since June.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal spot price benchmark for October 2011 at US$ 119.24 per ton, US$ 2.56 higher than September 2011 Price.

This coal benchmark price was calculated coal with calorie of 6,322kcal/kg (GAR), stated to be using formula based on the June 2011 index average of ICI-1 (Indonesia Coal Index), Platts-1, NEX (Newcastle Export Index), and GC (globalCoal Index).

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 October 2011.

The government of Indonesia has been publishing a monthly coal reference price (HBA & HPB) since January 2009 to be used by coal producers for all future spot and term contracts. The June HBA was 28.65 percent higher Y-o-Y.

The price was only valid for the spot price, while as for term price, the average reference price (HPB) of the previous 3 months. (50% of last month HPB, 30% of a month earlier HPB and 20% of two-month earlier HPB) for coal contract at least 12 months.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are acted as the benchmark and used to calculate other 54 coal types with a quality similar to the coal price markers.

For sales in the barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies have revised to comply with new coal pricing regulation, which was fully implemented on 23 September 2011.

As a result of the Indonesian new pricing formula, price of Indonesian coal will go up by $30 a tone and lead to a INR 0.70 (Approx. US$ 0.015) per unit increase in cost of electricity generation, as quoted by an Indian paper.

Indonesian government also drafting a regulation to ban coal with calorific value below 5700 kcal/kg on air dried basis for the export market by 12 January 2014. Indonesian coal producers were asked to add value for their product such as washing, crashing, blending and upgrading to have a higher-value product prior to eye on the export market.

Raw coal export will also be restricted.

On Thursday, finance minister of Indonesia sets coal as one of 15 products – along with carbonated soft drinks; electric cigarettes; dyes, monosodium glutamate; and diamonds – that should be levied. Indonesia’s excise law says the government can impose excise, or a specific tax, on goods that have negative impact to humans or the environment, as reported by Jakarta Globe on 2 October 2011.

In coming years Indonesian coal industry will see a number of new regulations and restriction related to coal price and export.

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)

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Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for August'2011, US$ 117.21 per ton, which is 0.87 percent less than July'2011 price.

Thu,August4, 2011

Ministry of Energy and Mineral Resources of Indonesia has set the August 2011 coal reference price at US$ 117.21 per ton slightly lower than July or 0.87 percent lesser than July 2011 price.

The Indonesian coal reference price, also known as the HBA, for August has fallen for the third consecutive month to US$117.21/t, from US$118.24/t in July.

The HBA has continued to fall since June. The HBA is the minimum price used for the calculation of taxes for producers pay for all future exports and domestic coal sales. It is calculated using a basket of indices, including the price is a monthly average of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index and the globalCOAL Index from the previous month.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.80%, Ash Content 15.00% and delivery free on Board (FOB) Vessel supply between 1 – 31 August 2011.

Eight brands of Indonesian coal which are most commonly traded in the market. The price marker is used to calculate other coal types with a quality similar to the coal price markers. For spot sales of 11-month or below 11-month supplies, will use coal price reference from the month of loading or B/L date.

For term contracts, the average of coal price reference for the last three months (from the month of price conclusion) is used to set coal prices for a one-year contract. Supplies are limited to a maxium of 12 months.

For sales in the barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)

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Monday,04 July2011

Indonesian Coal Price Reference ( HBA) :(US$/MT):July'2011 US$ 118.24 M.T.Assessment Basis : HBA, Quality, Delivery,
Last Update :Mon,04 July,2011
Source:DJMBP - ESDM, Indonesia

The Ministry of Energy & Mineral Resources sets coal spot price benchmark for July 2011 at US$ 118.24 per ton, less than US$ 0.79 per ton in June 2011.

This coal benchmark was calculated coal with calorie of 6,322kcal/kg (GAR), stated to be using formula based on the May 2011 index average of ICI-1 (Indonesia Coal Index), Platts-1, NEX (Newcastle Export Index), and GC (globalCoal Index).

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 July 2011.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The June HBA was 22.43 percent higher Y-o-Y.

The price is only valid for spot price, while as for term price, the benchmark is using the average of recent 3 months benchmark prices and valid for coal contract at least 12 months.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 54 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)


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Monday,13 June2011

Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for June'2011, US$ 119.03 per ton, which is 1.2 percent higher than May'2011

Indonesian Coal Price Reference ( HBA) :(US$/MT) : June 2011 US$ 119.03 M.T.Assessment Basis : HBA, Quality, Delivery,

Last Update :Mon, June13, 2011
Source:DJMBP - ESDM, Indonesia

The Ministry of Energy & Mineral Resources sets coal spot price benchmark for June 2011 at US$ 119.03 per ton, higher than US$ 1.42 per ton in May 2011.

This coal benchmark was calculated coal with calorie of 6,322kcal/kg (GAR), stated to be using formula based on the May 2011 index average of ICI-1 (Indonesia Coal Index), Platts-1, NEX (Newcastle Export Index), and GC (globalCoal Index).

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 30 June 2011.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The June HBA was 22.43 percent higher Y-o-Y.

The price is only valid for spot price, while as for term price, the benchmark is using the average of recent 3 months benchmark prices and valid for coal contract at least 12 months.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 54 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies will have to be revised to comply with new coal pricing regulations before September 23, 2011.

As a result of the Indonesian new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a INR 0.70 (Approx. US$ 0.015) per unit increase in cost of electricity generation, as quoted by an Indian paper.

Indonesian coal prices are also gaining on a shortage of coal in China to meet summer demand, said a coal trader from Kalimantan. Chinese local media reported that, Beijing may cut the 17 percent value-added tax and port charges on imported coal to encourage more overseas purchases. China is now facing its worst summer power shortage in seven years, as quoted by Chinese as well as International medias.

Indian high energy demand also has influenced the coal prices in recent weeks says another coal trader from Jakarta.

Click here for complete details of Indonesian coal reference prices since Feb 2010.(cs)
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Monday, 09 May 2011

Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for May2011, US$ 117.61 per ton, which is 3.61 percent lesser than April 2011

Indonesian Coal Price Reference ( HBA) :(US$/MT) : May 2011 US$ 117.61 M.T.Assessment Basis : HBA, Quality, Delivery,

Last Update :Mon, May09, 2011
Source : DJMBP - ESDM, Indonesia

Ministry of Energy and Mineral Resources of Indonesia has set the May 2011 Indonesian Coal Reference Price for thermal coal at US$ 117.61 per ton, which was 3.61 percent lesser than April 2011 price of US$ 122.02.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The May HBA was 27.73 percent higher Y-o-Y.

Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX) and the New Castle Global Coal Index (GC) from the previous month.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 May 2011.

Any deliver of cargo after 31 May, must be used June 2011 HPB unless the deliveries fall under term contract.

Director General Mineral and Coal have declared today coal reference price for May 2011. The declared HBA was at US$ 117.61 per ton FOB vessel a marginal drop of US$ 4.41 per ton or down 3.61 percent compared with April 2011 Coal reference price. Government has taken around nine days to release this month HBA.

The declared ICRP for this month was dropped by US$ 0.41 per mt and it was the third continues drop since March 2011.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 52 coal types with a quality similar to the coal price markers.

For sales in barge, the reference price is reduced by barging and transhipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers.
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Monday, 18 April 11

Indonesian Coal Price Reference(HBA), Benchmark Price-Monthly Coal Price for April 2011, US$ 122.02 per ton, which is 0.33 percent lesser than March2011
Indonesian Coal Price Reference ( HBA) :(US$/MT) : April 2011 US$ 122.43 M.T.Assessment Basis : HBA, Quality, Delivery,Last Update : Thu, Mar10, 2011
Source : DJMBP - ESDM, Indonesia
Ministry of Energy and Mineral Resources of Indonesia has set the April 2011 Indonesian Coal Reference Price for thermal coal at US$ 122.02 per ton, which was 0.33 percent lesser than March 2011 price of US$ 122.43.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The April HBA was 41.06 percent higher Y-o-Y.

Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX) and the New Castle Global Coal Index (GC) from the previous month.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery within 1 - 30 April 2011. Any deliver of cargo after 30 April, must be used May 2011 HPB unless the deliveries fall under term contract.

Director General Mineral and Coal have declared today coal reference price for April 2011. The declared HBA was at US$ 122.02 per ton FOB vessel a marginal drop of US$ 0.41 per ton or down 0.33 percent compared with March 2011 Coal reference price. Government has taken around eighteen days to release April HBA and also done some significant changes in formulas to determine coal prices for Indonesian coals.

March 2011 coal reference price was at US$ 122.43 per ton.

The declared ICRP for this month was dropped by US$ 0.41 per mt and it was the second continues drop since March 2011.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 53 coal types with a quality similar to the coal price markers.

For sales in the barge, the reference price is reduced by barging and transshipment costs from the barge to the vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers.

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Indonesian Coal Price Reference ( HBA) :(US$/MT) : March 2011 US$ 122.43 M.T.Assessment Basis : HBA, Quality, Delivery,Last Update : Thu, Mar10, 2011
Source : DJMBP - ESDM, Indonesia

Indonesia’s Ministry of Energy and Mineral Resources has set the March 2011 Indonesian Coal Reference Price for thermal coal at US$ 122.43 per ton, which is 3.63 percent lesser than February 2011 price of US$ 127.05.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The March HBA was 41.30 percent higher Y-o-Y.

Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX) and the New Castle Global Coal Index (GC) from the previous month. Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis spot contract. (supply within 12 months).

Director General Mineral and Coal have declared yesterday coal reference price for March 2011 and also Introduced two new coal brands. The declared HBA was at US$ 122.43 per ton FOB vessel drops by US$ 4.62 per ton or 3.63 percent compared with February 2011 Coal reference price.

February 2011 coal reference price was at US$ 127.05 per ton.

The declared ICPR in this month is dropped by US$ 4.62 per mt and first dropped in last five months.

Government also declaring reference price for eight brands of Indonesia coal which are most commonly traded in the market. The price marker is used to calculate other 53 coal types with a quality similar to the coal price markers.

For term sales of above one year, the average of coal reference price for the last three months is used to set coal prices for a one-year contract.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers.

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Indonesian Coal Price Reference ( HBA) :(US$/MT) : February 2011 US$ 127.05 M.T.Assessment Basis : HBA, Quality, Delivery,Last Update : 07/02/2011 Source : DJMBP - ESDM, Indonesia

Indonesia’s Ministry of Energy and Mineral Resources has set the February 2011 Indonesian Coal Reference Price for thermal coal at US$ 127.05 per ton, which is 13.03 percent higher than January 2011 price of US$ 112.40. The government of Indonesia has been publishing a monthly coal reference price (HBA) since February 2010 to be used by coal producers for all future spot and term contracts. The February HBA was 44.68 percent higher compared with a year earlier.
Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX) and the New Castle Global Coal Index (GC) from the previous month. Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and delivery free on Board (FOB) Vessel basis spot contract. (supply within 12 months).
Director General Mineral and Coal have declared today coal reference price for February 2011. The declared HBA was at US$ 127.05 per ton FOB vessel up by US$ 14.65 per ton or 13.03 percent compared with January 2011 Coal reference price.
January 2011 coal reference price was at US$ 112.40 per ton.
The declared ICPR in this month was the highest since the government starts to declare ICPR ( HBA) since February 2010. The lowest HBA was declared in April last year at US$ 86.50.
Government also declaring reference price for eight brands of Indonesia coal which are most commonly traded in the market. The price marker is used to calculate other 52 coal types with a quality similar to the coal price markers.

For term sales of above one year, the average of coal reference price for the last three months is used to set coal prices for a one-year contract.
For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.
The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers.

Declared by : The Directorate General of Mineral, Coal and Geothermal, Ministry of Enegy and Mineral Resources, Republic of IndonesiaAssessment Basis ( Coal Marker & Other Coal Brand) HBA : Monthly average of four international coal indices (ICI 1 - 25%, Platts 1 - 25%, New Castle Export Index - 25% and Newcastle globalCoal Index - 25%) Quality : GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Sulphur 0.80%, Ash Content 15.00% Delivery : Free on Board (FOB) Mother Vessel.For the spot price (coal contract or delivery below 1 year) the average index is 1 month earlier in which the coal selling price prevailing in one month is based on a monthly index price/coal price reference. For term price (definite term), reference price uses the average coal price reference in the past 3 months in order to determine the contract price 1 year ahead. The interval between the sale and purchase contract and delivery does not exceed 3 months.For FOB Barge, adjustment should be made (deduction of barging and transshipment costs from FOB Vessel to FOB Barge). Remark : Leeuniversal.blogspot.com makes no warranties, express or implied, as to the accuracy adequacy or completeness of the information and assumes no liability in connection with any party use of it. Information contained within the blog is intended for informational purposes only and is not intended as professional counsel and should not be used as such. Blog will endeavor to update information where appropriate, but is under no obligation to do so. All third party users of this website and or data produced or published by the blog do so at their own risk. Read our Terms of Use Privacy Policy Disclaimer before use of this site. Source : DJMBP - ESDM, Indonesia Last Update : 07/02/2011

Bayan Resources, Kangaroo Resources Ltd. extend due diligence

Tue,Feb08, 2011
Coal miner controlled by businessman Dato' Low Tuck Kwong PT Bayan Resources Tbk (BYAN) and Australia-listed coal company Kangaroo Resources Limited have agreed to extend a due diligence period to enable the accomplishment of small number of outstanding items, quoted by Insider Stories.

Insider Stories further reported, in an official statement obtained today, both companies initially set a 30 days of the due diligence on January 28 2011.
The extension won't delay the transaction's accomplishment. Both Bayan and Kangaroo are continuing to finalize independent experts' reviews on the assets, ahead of shareholder meetings to approve the transaction.
On December 28 2010, Bayan and Kangaroo Resources entered into a share purchase agreement.

Bayan will inject Kangaroo Resources with 9 coal concession assets in East Kalimantan with coal resources of 3.8 billion metric tons.
In return, Kangaroo Resources will issue new shares, enabling Bayan Resources to control Kangaroo Resources.

Bayan also entered into share sale and purchase agreements with three buyers PT Ilthabi Bara Utama, Prime Mine Resources Limited, Romo Nitiyudi Wachjo, on December 28 2010 to acquire 9 coal concession assets in East Kalimantan.
Tags: coal miner, PT Bayan Resources, Kangaroo Resources, agreed, diligence period, Australia coal news, Indonesia coal news, share purchase, agreement, East kalimantan, buyers, PT Ilthabi Bara Utama, Prime Mine Resources, Romo Nitiyudi Wacho

PUSTAKA JAYA PALU POWER LOOKING FOR 5800 GAD COAL

Feb08, 2011
According to market information, PT Pustaka Jaya Palu Power, a power plant operator of the Mpanau plant, Palu, Sulawesi has invited coal suppliers to supply 16,000 MT of coal with Calorific Value (GAD) 5,600 - 5,800 kcal/kg per month.

The tender has required suppliers to offer coal for the period of 2 to 5 years and the first shipment of coal should be delivered early April 2011 against this tender.
CCoW or IUP holders only allowed to participate in the tender and participants are required to submit their tender document on or before 21 February 2011 at 14:00 west Indonesia standard time.

The tender documents can be collected from PT Pustaka Jaya Palu Power, Rukan Artha Gading Niaga Blok H No. 23, Jl. Kelapa Gading Barat, Kelapa Gading, Jakarta Utara 14240 between 9 - 14 February 2011.
(sourced:coalspot)

Tags:PT Pustaka Jaya Palu Power, looking for coal suppliers, 5800 GAD coal, Mpanau plant, invited tender, offers, CCoW or IUP holders, Indonesia coal news, Indian steam coal traders, Indonesian Coal Mining Association

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Zimbabwe diamond, coal exploration fees soar

Wed Feb 9, 2011
HARARE Feb 9 (Reuters)-Zimbabwe has drastically increased exploration fees for diamonds and coal, in an effort to discourage companies from speculating on mining claims, state media reported on Wednesday.
The state-owned Herald newspaper said the exploration fee for diamonds had increased twenty-fold, to $1 million, while the coal fee went up five-fold to $100,000 from $20,000.
Mines Minister Obert Mpofu could not be reached for comment.

The Zimbabwe Chamber of Mines said the increase was unexpected but would not say whether it would impact new investment in the resource-rich nation.
"We were not consulted about it and this is quite a hefty increase," Chris Hokonya, the chamber's chief executive, told Reuters.
The government has said many companies hold mining claims for speculation and the increase in exploration fees is seen as discouraging the practice.
Global miner Rio Tinto (RIO.L: Quote) (RIO.AX: Quote) is just one of the foreign companies mining diamonds in the southern African nation.
The government last year announced it would nationalise all alluvial diamond mining operations, mostly in the eastern Marange district, while handing management contracts to private companies.
(Reporting by Alfonce Mbizwo;editing by Keiron Henderson,sourced:reuters)
Tags:Zimbabwe, coal exploration fees, diamond exploration fees, Herald newspaper, mines minister, The Zimbabwe Chamber of Mines,investment, Rio Tinto

INDIA'S SIMHAPURU TARGETS S.AFRICAN COAL

Feb08,2011
Economic Times reported that, India's Simhapuri Energy , a unit of the Madhucon Group , wants to buy new or existing collieries in South Africa from where it aimed to export a minimum of 5 million tonnes within five years, an official said on Tuesday.
ET furhter reported that, Indian companies are buying coal assets in top five global exporter South Africa as it moves to secure resources for a growing economy and to feed coal into new power plants.

"We want to invest in coal and are looking at some acquisitions. From South Africa we are targeting a minimum of five milion tonnes of coal for export within five years," Nama Krishnaiah, director of Simhapuri Energy, told Reuters on the sidelines of an African mining conference.
Displacing Europe, India and China are emerging as the two main destinations for coal from South Africa, which last year shipped some 63 million tonnes of thermal coal.
Maducon Group has interests in the construction, coal and sugar industries, with Madhucon Projects listed in Bombay.

Krishnaiah said the company, which recently opened offices in Johannesburg, was in discussions with unnamed junior miners, as well as applying directly to the Department of Mineral Resources for mining licenses.
"At this moment we are targeting some brownfield projects that have mining licenses, but we are looking at greenfield (developments) also," said Krishnaiah, adding that Zimbabwe's coal fields were also attractive.

He said the company, which was developing a 1,920 megawatt power plant near India's Krishnapatnam port, was financially strong and had capital to purchase coals assets.
The company already owns coal mines in Indonesia. (Source:Economic Times)
Tags:Feb 2011, India, Simhapuri Energy, Madhucon group, buy, new or existing colllieries, South Africa, China, Zimbabwe coal fields, coal export, Krishnapatnam port

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Russia's MMK sees new mill capacity at 1.5 mln T/yr

Wed Feb 9, 2011 11:19am GMT
MOSCOW Feb 9 (Reuters) - Magnitogorsk Iron & Steel Works (MAGN.MM: Quote), Russia's third-largest steelmaker, said on Wednesday its 5,000 mm plate mill has a full order book and that its annual output is about 1.5 million tonnes.
The mill, commissioned in 2009, produced 127,000 tonnes of steel in January, up from 112,000 tonnes in December.

The new mill produces thick steel for industries such as pipe-making and shipbuilding and is part of the company's strategy to increase its value-added production.
The steelmaker, also known as MMK, is in the midst of an aggressive expansion that will see output reach 18.6 million tonnes annually by 2014.
It produced 11.4 million tonnes of crude steel last year and expects 2011 output to increase by 14 percent. (Reporting by Alfred Kueppers, sourced:reuters)

Deals of the day -- mergers and acquisitions

Wed Feb 9, 2011 10:30am GMT
Feb 9 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 1000 GMT on Wednesday.
(For Reuters columns on deals, click on
** The London Stock Exchange (LSE.L: Quote) is to buy the owner of the Toronto Stock Exchange TMX Group (X.TO: Quote) in an all share deal that will create a mining-dominant exchange at a time of rising commodity prices.
** Millhouse LLC, the investment company of Russian billionaire Roman Abramovich, said on Wednesday it has sold a 25 percent stake in the country's main state-run television channel to the National Media Group. The price of the sale of the stake in Channel One was not disclosed, but business daily Kommersant reported the group paid Millhouse $150 million.
** CSN (CSNA3.SA: Quote), Brazil's largest diversified steelmaking group, has raised its stake in Australian miner Riversdale (RIV.AX: Quote) which is subject to a $3.9 billion takeover bid from global miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote). To read more, please double click on
** Australia's Centro Properties Group (CNP.AX: Quote) has narrowed down bidders for its $9.5 billion U.S. shopping mall assets to three consortiums, including private equity firm Blackstone Group (BX.N: Quote), a source said.
** Billionaire investor Wilbur Ross is considering joining in an effort to buy oil and gas company Exco Resources Inc (XCO.N: Quote), according to a regulatory filing.
** Footwear retailer DSW Inc (DSW.N: Quote) said it agreed to merge with its largest shareholder Retail Ventures Inc (RVI.N: Quote) in an all-stock deal, and raised its full-year outlook.(By Aditi Sharma,Bangalore & Tina Kwan, Singapore)

Ukraine maintains December steel production level in January

Wednesday, 09 Feb 2011
It is reported that in January 2011, Ukrainian steelmakers have decreased crude steel output by 1% MoM. Alchevsk Steelworks has boosted the production of crude steel and rolled products by 12% and 15% respectively, while the other producers have shown few changes.
According to Millennium Capital analyst “The news is NEUTRAL for the steel producers. The Ukrainian steel industry has had little change in output comparing to the previous month, apart from Alchevsk Steelworks. We have anticipated the latter’s output to grow, as the parent company has attracted USD 500 million loans in December, managing to stabilize raw material supplies, the cause of the company’s underperformance in 2010.”
Tags: Ukrainian steelmakers, decreased, crude steel output, Millennium Capital, raw materials
(sourced:Millennium Capital)

Xstrata’s profit increases by 86 percent in 2010

Tuesday, 08 February 2011
On February 8, Anglo-Swiss miner and coking coal producer Xstrata Plc issued its financial results for 2010, reporting that the restructuring activities undertaken during 2009 positioned it to benefit from a more favorable operating environment.
The attributable profit of Xstrata was $5.15 billion in 2010, recording an increase of 86 percent year on year thanks to stronger commodity prices. Its revenue saw an increase of 34 percent in 2010, increasing from $22.7 billion in the previous year to $30.5 billion.
Xstrata said it plans to pay a final dividend of 20 cents per share, reflecting a return to pre-crisis levels and confidence in the medium-term outlook.
"Looking ahead, leading indicators suggest that the US economy continues to find a reasonably solid track for recovery. In the eurozone, January data for the manufacturing and services industries reveal the fastest pace of expansion in nine months. Developing economies and China in particular appear set to continue to achieve wholly respectable high single-digit growth rates in 2011, albeit below 2010 levels due to the impacts of inflation and the proactive actions by governments to contain economic growth to within manageable levels," Xstrata CE Mick Davis said.
Tags: coking coal , raw mat , UK , Switzerland , Europe , Non-EU Countries , European Union , mining , fin. Reports , Xstrata(sourced:steel orbis)

Metinvest targets annual steel output of 25 million mt in long term

Tuesday, 08 February 2011
Ukraine's largest mining and steel group Metinvest has increased its investments for 2011 by 2.4 times year on year to $1.18 billion in order to improve its steel production efficiency and to strengthen its vertical integration with the aim of processing in-house as much available raw materials as possible into steel, said Metinvest's CEO Igor Syry. He added that during the next five years Metinvest plans to invest around $6 billion for the stated purpose, targeting a long-term output goal of 25 million mt of steel per year, which will take it to around fifth place among the world's major steelmakers.
Metinvest plans to expand its steelmaking capacities both by mergers and acquisitions, and by pursuing organic growth. "We will also strengthen our footprint in our strategic markets - in Ukraine and the CIS, the EU, the Middle East and North Africa. Our presence will grow by means of product portfolio diversification, reduction of the share of semi-finished products down to 10 percent in favor of such products as hot and cold rolled coils, coated coils and heavy sections, as well as through clear customer segmentation and development of long-term mutually beneficial relationships with key accounts," Mr. Syry said.
As regards its technological strategy, Metinvest plans to introduce pulverized coal injection (PCI) technology. Its high-grade coking coal needs per annum will increase to 13 million mt, and its coke needs will rise to 8 million mt. "The share of high-quality coking coal in our blast furnace charge will need to increase, though, unfortunately, there is a lack of such coals in Ukraine. Additional volumes can be imported, and naturally, we will be sourcing them from United Coal (UCC), our own coal mining company in the USA. We have approved capacity expansion projects at the Affinity and Roaring Creek mines, and we are planning to increase supplies," Mr. Syry stated.
In addition, Metinvest plans the implementation of energy efficiency projects, the positive effect of which, according to preliminary estimations, will amount to around $1 billion per year.
Tags: hrc , crude steel , coking coal , crc , raw mat , semis , flats , Ukraine , CIS , steelmaking , production , investments , Metinvest(sourced:steel orbis)

US raw steel production up 0.4 percent week-over-week

Wednesday, 09 February 2011
US raw steel production rose last week (ended February 4) with output increasing 0.4 percent from the previous week. In the previous week, US raw steel production had increased 0.9 percent compared to the week before.
Total raw steel production in the United States amounted to 1,789,000 nt last week. This figure represents a 0.4 percent increase from the 1,782,000 nt produced in the prior week, and is up 10.3 percent from the 1,605,000 nt produced in the same week of last year.
The capacity utilization rate of US raw steelmaking facilities was 74 percent in the week ending February 4, compared to 73.7 percent in the prior week and 67.3 percent in the same week last year.
Tags: USA , North America , steelmaking , production

Rio Tinto approves $277 million expansion for Iron Ore Company of Canada

Wednesday, 09 February 2011
Anglo-Australian mining conglomerate Rio Tinto approved a US$277 million investment (Rio Tinto share US$163 million) in the second phase of Rio Tinto's three-phase project that will ultimately raise its 59 percent-owned Iron Ore Company of Canada's (IOC) concentrate production capacity by 40 percent to 26 million metric tons (mt) per year.

The US$277 million investment will increase IOC's spiral and magnetite concentrate production capacity by an average of 1.3 million mt annually to 23.3 million mt annually.

Rio Tinto's chief executive Sam Walsh commented that the new investment is an important development, especially considering growing global demand. "Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC's concentrate is well placed to complement the increasing use of lower-quality ore to meet that demand," added Walsh.
Tags: iron ore , raw mat , Australia , Canada , UK , Oceania , North America , Europe , mining , production , Rio Tinto
(sourced:steelorbis)

Macroeconomic indicators - Chinese manufacturing growth slows in January amid tightening measures

Wednesday, 09 Feb 2011
Xinhua reported that growth in China manufacturing sector slowed in January amid the government efforts to cool price pressures.
China Federation of Logistics and Purchasing said China manufacturing sector purchasing manager index fell to a five month low of 52.9% in January compared with 53.9% in December. The January figure means the benchmark index for economic expansion has remained above the boom or bust line of 50% for 23 consecutive months.
Analysts said authorities' moves to cool prices prompted the PMI decline and the economic outlook remained unclear.

Mr Zhang Liqun a research fellow with China top government think tank the Development Research Center of the State Council said the continued slowdown in the January PMI data showed economic uncertainty remained and the data would likely drop further in months to come. He said that "This showed manufacturing enterprises are facing greater pressure and more difficulty with increasing costs and shrinking orders.”
Mr He Yifeng a senior researcher who had kept tracing PMI figures with Hongyuan Securities said the January PMI data was a good sign that the economy was slowing remarkably.

China consumer price index a main gauge of inflation rose 4.6%YoY in December and the full year CPI climbed 3.3% in 2010 exceeding the central government official target of 3%. Mounting inflation pressure prompted the People Bank of China the central bank to adopt more tightening measures, including a hike in the bank reserve requirement ratio by 50 basis points on January 20.

The central government imposed tougher measures in cities where home prices are skyrocketing, such as restrictions on home purchases and an increase in the minimum down payment requirement for the purchase of a second home to 60% of the property's value.

Mr Cai Jin vice-president of CFLP said "The drop of PMI in January was remarkable, but the decline also had a positive meaning. Because the 10.3% of economic growth last year was a little too high a fall in PMI data in January was closely related to the government's macro control measures and it was helpful to tame inflation."
The HSBC China Manufacturing Purchasing Managers Index, another survey released recently however edged up to 54.5 last month from a three month low of 54.4 in December.(sourced:Xinhua)

Northwest Pipe expands Houston, Texas facility

Wednesday, 09 February 2011 02:49:18 (GMT+2)
Vancouver, Washington-based welded pipe manufacturer Northwest Pipe announced Tuesday plans to expand its Houston, Texas mill in response to growing customer demand for greater product offerings.

The Houston mill has traditionally produced only mechanical tubing products, but began producing green tube for OCTG in 2010. The mill upgrade will build upon the OCTG green tube line and other products being produced on site by adding production of 2 and 3/8" and 2 and 7/8" tubing.

Northwest Pipe's announcement comes less than a week after announcing a product expansion investment at its Atchison, Kansas pipe manufacturing plant.
Tags: pipe , tubing , longs , tubular , USA , North America , steelmaking , production , investments

Drill pipe and drill collars from China threatens US industry

Wednesday, 09 Feb 2011
The United States International Trade Commission determined that a US industry is threatened with material injury by reason of imports of drill pipe and drill collars from China that the US Department of Commerce has determined are subsidized and sold in the United States at less than fair value.
Vice Chairman Mr Irving A Williamson and Commissioners Mr Charlotte R Lane and Dean Mr A Pinkert made affirmative determinations on the basis of threat. Chairman Ms Deanna Tanner Okun and Commissioners Mr Daniel R Pearson and Ms Shara L Aranoff made negative determinations.
As a result of the USITC affirmative threat determinations, Commerce will issue antidumping and countervailing duty orders on imports of these products from China.
These investigations cover finished and unfinished steel drill pipe and drill collars, whether or not conforming to American Petroleum Institute or other specifications and without regard to length, outside diameter, or steel chemistry. Drill pipe and drill collars are hollow drill string components used in drilling rigs (particularly those intended to extract oil and gas) to transmit power and conduct lubricant during the drilling process. This description does not include unattached tool joints or unfinished tubes for casing and tubing. The 2011 Harmonized Tariff Schedule of the United States provides for drill pipe (without tool joints) in subheadings 7304.22.00, 7304.23.30, and 7304.23.60, and for drill pipe (with tool joints) and drill collars in subheading 8431.43.80.
Status of Proceedings
1. Type of investigations: Final antidumping and countervailing duty.
2. Petitioners: Rotary Drilling Tools Beasley, Texas Steel Conversions Inc Houston, TMK IPSCO Downers Grove, VAM Drilling USA Inc Houston and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC, Pittsburgh
3. Investigations instituted by USITC: December 31, 2009.
4. USITC hearing: January 5, 2011.
5. USITC vote: February 7, 2011.
6. USITC notification of Department of Commerce: February 17, 2011.

New Elk Coal Company leases coke storage area at Texas port

Wednesday, 09 February 2011
The New Elk Coal Company, a subsidiary of Toronto, Ontario-based Cline Mining Corporation, entered into a long term agreement with the Port of Corpus Christi Authority of Texas Tuesday that will allow New Elk to lease 18 acres of land proximate to the bulk coal shiploader for five years that will serve as a coal storage area for its metallurgical coal from its Colorado coal mine. The land will provide the company with immediate access to the world seaborne coal markets.
Elk Coal also has the option to extend the lease for five additional periods of five year.
Tags: coking coal , raw mat , USA , Canada , North America , distribution , mining , freight
sourced:steelorbis

SHFE rebar reflects buoyant mood in China on opening

Wednesday, 09 Feb 2011
Shanghai steel rebar futures edged up to a record as Chinese markets reopened after a week-long Lunar New Year holiday.
The most active rebar contract for October delivery was up 0.3% at CNY 5,140 per tonne by 0106 GMT, after touching an all time top of CNY 5,150 earlier.(sourced from Reuters)

US Steel receives state funds for Ohio expansion project

Wednesday, 09 February 2011 02:59:55 (GMT+2)
Ohio's State Controlling Board announced a series of approved grants administered by the Ohio Department of Development to encourage economic growth and job creation.
United States Steel Corporation will receive a $200,000 Rapid Outreach Grant to help purchase new machinery and equipment for its expansion project in Lorain County, Ohio. The entire project will cost an estimated $93.6 million.
Tags: USA , North America , steelmaking , investments , US Steel(sourced:steelorbis)

ArcelorMittal SA back to profit, sees improvement

Tue Feb 8, 2011 7:57am GMT
JOHANNESBURG (Reuters) - ArcelorMittal South Africa, a unit of the world's biggest steelmaker, on Tuesday posted a return to full-year profit, lifted by stronger sales, and said it expects solid results ahead.
The company said diluted headline earnings per share for the year to end-December totalled 343 cents, compared with a loss of 104 cents a year earlier.
Headline earnings are the main gauge of profit in South Africa and strip out certain one-time items.
Revenue totalled 30.22 billion rand, up from 25.59 billion rand in the previous year.
The company said growing demand for steel and higher global prices would boost its earnings in the first quarter of 2011.
"A significant turnaround in earnings is anticipated for the first quarter 2011 compared to the loss for the last quarter of 2010," it said in a statement.
The company, however, said the earnings would be partially offset by rising prices of raw materials, mainly scrap.
The global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began steadily to increase, but steel prices dropped while the industry as a whole took a breather.
The company also said the arbitration proceedings relating to its stake in Kumba's Sishen mine were in progress and a hearing date was yet to be set.
ArcelorMittal South Africa has been at loggerheads with Kumba, a unit of Anglo American, over iron ore prices.
It is also attempting to buy little-known mining firm Imperial Crown Trading after that company won a prospecting right to a stake in Kumba's Sishen mine.
As part of that deal, ArcelorMittal South Africa has said it would transfer about a quarter of its shares to black investors, including ICT and an investment group led by the son of South African President Jacob Zuma.
The company said issues relating to the black empowerment transaction and acquisition of ICT were still in progress.
Shares in the steelmaker have gained nearly 8 percent so far this year, outperforming a 3.5 percent rise in the Johannesburg's blue-chip Top-40 index.

Essar Steel restarts No 7 blast furnace

Tuesday, 08 Feb 2011
The Canadian Press reported that Essar Steel Algoma announced that it has started its No 7 blast furnace after a lengthy, unplanned shutdown that began in late January.
Essar said “The blast furnace is ramping up smoothly and expects to return to normal operating levels in the next few days.”
It added that meanwhile, coke making operations remain in full effect and limited production continues at select downstream operations.

Mr Pramod Shukla COO of Essar Steel Algoma said “As we look forward to the resumption of full operations, we wish to thank our customers, employees and the community for their patience and understanding during this difficult period.”
The company had said earlier that the outage was caused by a cooling water leak and initial efforts at an expedited startup were unsuccessful due to extreme weather conditions.(sourced:The Canadian Press)

Mining nationalisation "road to ruin" for S.Africa: Anglo boss

Tue Feb 8, 2011 8:24am GMT
CAPE TOWN (Reuters) - South Africa should not heed "false prophets" calling for mining nationalisation because of the damage such a move would do to its economy, the head of global mining giant Anglo American said on Tuesday.
"Mining companies simply will not invest if they cannot be assured that the assets they create will be secure," chief executive Cynthia Carroll said in a speech at a major African mining conference in Cape Town.
"In ignoring this truth, the false prophets who argue for nationalisation are advocating the road to ruin -- a path we must not follow," she said.
In the last year, radical elements within South Africa's ruling African National Congress (ANC) -- most notably its Youth League -- have been calling for nationalisation of the mining industry, sparking concern among domestic and foreign investors.
Senior ANC figures including President Jacob Zuma and mines minister Susan Shabangu have said nationalisation is "not policy", but have stopped short of quashing the idea, suggesting it may have some traction in the corridors of power.
The notion, which was tabled at a major ANC policy meeting last year, is seen as one of the primary reasons for the decline over the last 10 years in the mining sector in South Africa, the world's biggest platinum and number three gold producer.
The industry has also been plagued by a series of controversies in the administering of mining and prospecting licences, although the government says it is overhauling the system to eliminate the possibility of corruption and blunders.
Mining accounts for 8 percent of GDP in Africa's biggest economy, and directly employs more than 500,000 people.
The government has placed it at the heart of plans to tackle 25 percent unemployment over the next five years, although many anlaysts are sceptical about turning the industry round.

Steel merger may not lead to higher prices - Mr Toyoda

Tuesday, 08 Feb 2011

Bloomberg quoted Mr Shuhei Toyoda president of Toyota Boshoku Corporation as saying that the planned merger of Nippon Steel Corporation and Sumitomo Metal Industries Limited may not lead to higher prices.
Mr Toyoda spoke to reporters in Toyota City after a factory tour. Toyota Boshoku, which makes car interior parts, is 39% owned by Toyota Motor Corporation.
On the merger's impact on steel prices, Mr Toyoda said that "I don't think the merger was intended to result in higher prices."
On the need for steelmakers to move production overseas, he added that "Japanese carmakers definitely need high quality steel overseas. Until now, they've had to spend money to ship from Japan or buy cheaper and lower quality steel locally. The Japanese steel industry operates very domestically."(sourced:bloomberg)

Ukraine's Metinvest sells $750 mln Eurobond

Tue Feb 8, 2011 8:52am GMT
KIEV Feb 8 (Reuters) - Ukrainian steelmaker Metinvest has placed a $750 million seven-year Eurobond with a yield of 9.0 percent, Thomson Reuters service IFR said on Tuesday.
The bond, arranged by Credit Suisse, Deutsche Bank, ING, RBS and VTB Capital, pays a coupon of 8.75 percent and came at a reoffer price of 98.722 percent of face value, equivalent to 598.8 bp over Treasuries, IFR said. (Writing by Olzhas Auyezov; Editing by Richard Balmforth,sourced:Reuters)

METI and FTC tussle over Nippon Steel and Sumitomo Metal merger

Tuesday, 08 Feb 2011
It is reported that the mega merger between Nippon Steel Corporation and Sumitomo Metal Industries Limited has become the subject of a tug of war between the trade ministry and an antitrust watchdog.
As per report, the Ministry of Economy, Trade and Industry is pushing for a realignment of Japanese businesses that would bolster companies' global competitiveness. The ministry is seeking to influence the Fair Trade Commission, which will scrutinize the planned merger for violations of the Anti Monopoly Law, by revising the Industrial Revitalization Law.

The FTC revised the criteria for examining mergers in 2007 to take into consideration the combined share of companies planning to merge in overseas markets, not just their share of the Japanese market.
The revision followed criticism that the existing criteria, which involve scrutiny of the combined share only in the domestic market, would thwart large scale mergers and realignments comparable to those taking place overseas.
With the revised criteria, the FTC was expected to look into the combined share of each product in the global market. If the share totals roughly 40% in one operation, the FTC would instruct the would be merged company to cede the operation to other companies.
Businesses had expected the Japanese watchdog to be on par with its US or European counterparts in handing down less stringent decisions. But they argue that the FTC is still too conservative about mergers between leading players. Among the limited number of sectors for which the FTC has studied such combined shares in overseas markets are hard disk drives, semiconductors and paraxylene, a chemical material used to make medicine.
One business observer said that "It is hard to determine if a merger plan would cause problems or not because details of only a few precedents were made available by the FTC."

While the EU's antitrust watchdog is legally obliged to disclose results of all cases it studies, it is up to the FTC to decide which cases will be made public.
The industry ministry became convinced that the 2007 criteria revision alone would not facilitate realignment of Japanese industries at the same level of other major economies and would erode Japanese companies' global competitiveness.
The ministry intends to submit a bill during the current Diet session to overhaul the Industrial Revitalization Law that would require the FTC to have a consultation with a minister who oversees the industry in which a merger is planned. But easing the criteria could also backfire, ending up depriving the market of free competition.
Taking precautions against the proposed legislation by the ministry, an FTC senior official says that it will be up to the watchdog how the outcome of the consultation will be incorporated into its antitrust scrutiny.

In fiscal 2009, the production volume of cold rolled steel, which is used to make vehicles and electric appliances, and of hot rolled steel for railway cars and roof materials by Nippon Steel and Sumitomo Metal accounted for about 50%, respectively, of overall production, including exports, by Japanese steelmakers.
The proportion of hot dip galvanized steel plates used for automotive bodies and planks for shipbuilding and bridges came to about 40% each. The two companies hold an overwhelming market share for railway tracks and wheels, while their sheet steel used at construction sites represented about 70%.(sourced:www.asahi.com)

Hebei Steel Group develops over 120 new steel products in 2010

Tuesday, 08 Feb 2011
It is reported that Chinese steelmaking giant Hebei Iron and Steel Group in 2010 developed more than 120 new steel products with its sales volume of such new products during the year reaching 2.9 million tonnes or 8.5% of its total sales volume.
Also in 2010, Hebei Steel produced 20.5 million tonnes of special steel, accounting for 60% of its total output volume, including steel products for offshore platforms and nuclear projects which have been produced for the first time in China. In 2010, Hebei Steel started production at its 2.15 million tonnes capacity cold rolled project which is the first project for the production of high strength cold rolled automotive plate and wide galvanized automotive plate in China Hebei Province.
In 2010, Hebei Steel invested CNY 1.52 billion in a total of 25 programs aimed at saving energy and reducing emissions. In China 11th five year period (2006-10), Hebei Steel invested CNY 5 billion in programs aimed at saving energy and cutting emissions, completing 142 such programs.
(sourced:SteelOrbis)

Nigeria finalizes agreement for pipe mill with Jiangsu Yulong

Tuesday, 08 Feb 2011
It is reported that Nigerian Content Development & Monitoring Board and China's major welded line pipe maker Jiangsu Yulong Steel Pipe have agreed to implement a schedule that will lead to the setting up of a 250,000 tonnes per annum longitudinal submerged arc welded pipe mill in Nigeria by September 2012.
The schedule which comprises six key activities and timelines was agreed on during a five day visit to Jiangsu Yulong's facility in China by an NCDMB team led by the executive secretary Mr Ernest Nwapa in January 2011.
The visiting team which included Mr Bola Akano representative of the MD of Addax Petroleum, a member of Sinopec Group, inspected Jiangsu Yulong's Longitudinal Submerged arc welding pipe mill, Helical Submerged Arc welding pipe mill and the High Frequency Resistance Welding Pipe Mill.
The visit was a follow up to the meeting held in September 2010 between NCDMB and representatives of Jiangsu Yulong at the Board’s headquarters in Yenagoa in Bayelsax State.
The Board's efforts are geared towards meeting the targets set for the industry by Ms Diezani Alison Madueke minister of petroleum resources during the inauguration of the Governing Council of the NCDMB by President Mr Goodluck Jonathan in September 2010.
The minister had declared that the steadfast implementation of the Nigerian Content Act will in the next four years lead to the establishment of three to four new pipe mills and other ancillary manufacturing plants to service the demands of the oil and gas industry.
In his remarks during the visit, Mr YongQing Tang the Chairman of Jiangsu Yulong reaffirmed the company’s commitment to set up in Nigeria and confirmed that 80% of the equipment for the production line dedicated to the Nigeria project had been manufactured and is awaiting testing and shipment.
Mr Tang who informed that the basic design of the proposed mill had been completed, added that the visit had demonstrated the commitment of the Nigerian Government to establish pipe mills in Nigeria and develop local steel pipe production.
According to him, Jiangsu Yulong looks forward to partnering with NCDMB, local companies and other Chinese companies like SINOPEC, operating in Nigeria which is familiar with the environment. He however, requested the Board to provide guarantees that the Nigerian National Petroleum Corporation and other major operators will patronize the LSAW mill when operational.
In his comments, Mr Nwapa assured Jiangsu Yulong that the Federal Government is actively promoting foreign direct investments, particularly in the energy sector and will provide all necessary support, approvals and incentives to the company. He said the Federal Government is committed to using locally manufactured pipes in the construction of Nigerian Gas Master Plan infrastructure which involves over 2000 kilometers of large diameter pipeline.
He noted that the Nigerian Content Law protects investors in any facility established in Nigeria to manufacture industry inputs and the NCDMB has demonstrated its ability to enforce this by ensuring that oil majors now source applicable line pipes from SCC Mill, which is the only manufacturer of pipes in Nigeria today.
He further assured Jiangsu Yulong that when the pipe mill becomes operational, NCDMB will not allow any operator in the industry to import longitudinal submerged arc welded pipes until the capacity of its facility and any similar plant is exhausted.
He further assured the company of the Board’s resolve to ensure that the intendments of the Nigerian Content Law as it relates to domiciliation for line pipe procurement is achieved, adding that the law is already being implemented and evidence of local production or concrete plans towards local production is prerequisite for the short listing of companies for contracts.
According to the project implementation schedule, Jiangsu Yulong will work with NCDMB between March and December 2011 to achieve critical milestones including land acquisition, permits, environmental impact assessment, detailed engineering and early site works preparatory to moving the mill. Both parties are also to organize training and attachment of Nigerian operators to ensure that a sizeable workforce is available when the plant is ready for testing.
A Chinese Contractor has already been engaged by Jiangsu Yulong, with the mandate to partner an experienced indigenous construction company in Nigeria for the construction of the plant between November 2011 and August 2012.
The Chinese Contractor and the senior executives of Jiangsu Yulong are expected in Nigeria in May 2011 for preliminary engineering work.
Mr Tang and Mr Nwapa thereafter inaugurated the project team for the Nigeria Pipe Mill which comprises personnel from NCDMB and Jiangsu Yulong as well as a consultant. The project team has since commenced work.
(sourced:vanguardngr.com)

Third auction of Kremikovtzi assets also fails

Monday, 07 February 2011 17:19:48 (GMT+2)
The third auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi has failed like the previous two auctions, since the only bidder did not present satisfactory documentation certifying that it had paid the required deposit, Sofia News Agency has reported. The bidder Victory Commerce, owned by Bulgarian businessman Georgi Manchev, has presented the copy of an email according to which Russia-based Rosbank transferred the required €20.28 million deposit for participation in the auction. However, Bulgarian Development Bank, which is carrying out the bankruptcy procedure, has stated in a press release that it has not received any deposit from the company. Mr. Manchev has said Victory Commerce is now withdrawing its bid. Bulgaria regrouped the assets of bankrupt Kremikovtzi to cut their price and tried to auction them for a third time on Monday, February 7, 2011, after failing to attract any bidders in the two previous auctions. For Monday's unsuccessful bid, the starting price was set at BGN 395 million (approx. $274 million), down 31 percent from the initial price at the first auction. As SteelOrbis previously reported, Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($440 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May last year and cleared for liquidation in June. Tags: Bulgaria , Europe, steelmaking(sourced:steelorbis)

Iron ore trading activity kept prices steady

Tuesday, 08 Feb 2011
Reuters reported that thin spot iron ore trading activity on Monday kept prices steady near record highs with top buyer China off the market for the Lunar New Year holiday.
Prices are expected to resume their rally when the Chinese markets reopen on Wednesday on persistent worries about tight supplies through the first half of 2011.

Macquarie Research said in a note that "There is little expansion potential in the global supply chain while rampant Chinese steel production growth is bolstering demand conditions. We would expect the price to keep edging upwards post Chinese New Year with USD 200 per tonne in sight."
Macquarie said the sharp decline in Brazil iron ore exports last month along with continuously tight cargoes from India suggest that the iron ore market will remain in an extremely tight situation in the first half of the year.
Iron ore exports from Brazil the world No 2 supplier of the steelmaking ingredient fell 29% in January from the previous month as heavy rains disrupted shipments.

Supplies from India, the world No 3 exporter had been tight because of a continuing ban on shipments from its Karnataka state. Macquarie said while a possible lifting of the ban this month could bring some material back to the market, the revamped state rules may make paperwork more rigorous and curb shipments compared to last year.
(sourced:Reuters)

Colombia coal workers accept Cerrejon pay deal

Sun Feb 6, 2011 6:51pm GMT
* Strike avoided, market had ignored walkout threat
* Cerrejon, workers had been in talks since last year
* Agreement expected to be signed on Tuesday
BOGOTA, Feb 6 (Reuters) - Colombian coal workers have accepted a compensation deal with the nation's largest exporter, Cerrejon, and the signing is expected to happen on Tuesday, company and union officials said.
Cerrejon produces on average 85,000 tonnes a day of coal, and any strike would have hit the global coal market at a time when it is vulnerable to supply disruptions in many important exporting countries, such as Australia.
"The majority of workers have accepted the offer by the company and that avoids a strike. We only have to edit the agreement and sign it. We hope to do it on Tuesday," Sintracarbon union President Igor Diaz said on Sunday.
Cerrejon chief negotiator Alvaro Lopez said he expected both sides to spend Monday looking over the wording of the deal and then ink the pact on Tuesday.
Traders have said the potential walkout had already been factored into prices.
Cerrejon and workers have been in talks since Dec. 9.
Cerrejon -- unlike privately owned Drummond and Glencore, Colombia's other top coal producers -- has listed partners, BHP Billiton (BLT.L: Quote), Anglo American (AAL.L: Quote) and Xstrata (XTA.L: Quote), to keep happy as well as its customers.
In June last year, workers at U.S. coal miner Drummond reached a three-year deal while a month later laborers at La Jagua mine of Glencore's Prodeco unit signed a two-year deal after a five-week walkout.(Reporting by Luis Jaime Acosta and Jack Kimball, editing by Maureen Bavdek and Gunna Dickson, sourced:Reuters)

Dock strike slows Peru's mineral exports

Mon Feb 7, 2011 4:03pm GMT
* At least 11 boats waiting to be loaded or unloaded
* Peru is world's second largest zinc producer
LIMA, feb 7 (Reuters) - A strike at Peru's main port was slowing down mineral exports on Monday as workers demanded better benefits in the world's No. 2 zinc producer, a union leader said.
There were at least 11 boats waiting to be loaded or unloaded at the port of Callao, Wilmer Esteves of the dock worker's union told Reuters. Workers had been protesting for better benefits for two weeks before going on strike.
The back-up occurred at a terminal used to export zinc and other minerals from Peru's central Andes.
Staff at the dock is "insufficient to complete the shipments," Peru's association of exporters known as Adex said.
The port is owned by the government and has sent Navy sailors to help load and unload boats.
(Reporting by Teresa Cespedes; Editing by John Picinich, sourced:Thomson Reuters)

Bahrain asks to be excluded from Saudi steel export ban

Monday, 07 Feb 2011
Arab Steel reported that CEO of Bahrain Trade and Industry Chamber asked for the need to exclude his country from the steel export ban decision since Bahrain is the little brother for the Kingdom of Saudi Arabia pointing out that the Bahraini side will send an official statement including this demand and its aspects to the Gulf Chambers Council soon.
He said that “I ask for this since this relation contains a kinship and many mutual interests between the two countries also the social, economic, and political closeness that distinguishes us and makes us the closest to integration on all levels making from us a good example for the start of the Gulf economic integration and puts us next to a unified Gulf market to be the encouraging role model.”
In Bahrain large businesses are currently carried on due to many construction projects it's not a secret that Bahrain depends on Saudi Arabia in the businesses especially in the field of logistic services.
Hinting that most Bahraini imports are in fact Saudi exports making the volume of the exchange amount less and expected to increase in the few days to come.
It's said that Ministry of Trade and Industry has found solutions to create the balance between the demand and offer in the steel markets after it issued a decree in 2008 to ban the steel export to abroad following the crisis that happened due to the doubling increases for the steel prices which reached phantom prices boosting the construction costs and obstructing many private and government projects.(sourced:Arab Steel)

Watchdog suspends ArcelorMittal's mine in Ukraine

Mon Feb 7, 2011 4:08pm GMT
KIEV Feb 7 (Reuters) - Ukraine's industrial safety watchdog has suspended coal production at a mine belonging to the country's biggest steel mill ArcelorMittal Kryvy Rih (ISPA.AS: Quote) (MT.N: Quote), the company said on Monday.
The company declined to comment on the consequences of the suspension for its steel production.
Ukrainian media said that a possible destruction of a road which ran above the mine's working zone was the reason for the watchdog's decision. ArcelorMittal Kryvy Rih cut crude steel production to 450,000 tonnes in January 2011 from 534,000 in January 2010. [ID:nLDE70O1K2]
The plant, located in the city of Kryvy Rih in central Ukraine, reduced pig iron output by 16 percent to 389,000 tonnes and cut rolled steel production by 9.5 percent to 406,000 tonnes.
In 2010, the mill boosted steel production to 6.13 million tonnes from 5.04 million tonnes in 2009. (Reporting by Pavel Polityuk; editing by David Cowell, sourced:reuters)

Update on rebar prices in Oman

Monday, 07 Feb 2011
According to a survey by the Department of Consumer Protection in the Ministry of Commerce and Industry which was conducted on February 1, Omani steel Majan rose at the Oman Construction Materials Company and the price per tonne reached OMR 306 from OMR 302 of two weeks ago.

The periodic survey conducted by the Department of Consumer Protection in the Ministry of Commerce and Industry in Oman includes 5 types of rabar, local Sharq Sohar and Majan and rebar imported from Qatar, UAE and Turkey.
The price of imported rebar from the UAE rose to OMR 308 from OMR 300 and that imported from Qatar rose to OMR 310 from OMR 305. The survey indicated the decline of the local rebar Sharq Sohar during the last week in the Middle East Company to OMR 310 from OMR 315 per tonne.

Prices of steel rebar imported from Turkey have fallen at Al Ansari by OMR 2 per tonne to OMR 305 from OMR 307. Rebar imported from the United Arab Emirates has also dropped to OMR 300 from OMR 302.
However, the prices of steel imported from the UAE and Qatar were stable at Bahwan at OMR 308 per tonne for the third straight week. Price of Omani steel at Bahwan has risen up by OMR 2 per tonne to OMR 310 compared to OMR 308 two weeks ago.(sourced:Zawya)