Jilin closes over 100 small coal mines

Tue, 01 Feb.2011
Jilin province, based in northeastern China, has closed 104 small coal mines in the past three years, eliminating around 5.33 million tonnes of backward production capacities, sources learnt form local government.
Nevertheless, the output of coal in Jilin Province in 2010 surged to 42.8 million tonnes up by 61% as compared to that of the province in 2005.

In addition, despite the increase in the coal output of the province, coal mine accidents in Jilin Province in 2010 were down 82% compared to the number of accidents in 2005. (sourced:en.sxcoal.com)

Hebei finds coalfield with 3.5 billion tonnest predictive reserves

Tuesday, Feb01, 2011

North China’s Hebei province has discovered a coal deposit with 3.5 billion tonnes predictive reserves within the depth of 2000m, Yanzhao Metropolis reported Jan 30, citing local authorities.
Preliminary exploration showed that the coalfield, located in Guangzong County, Xingtai City, boasts coal reserves up to 800 million tonnes within the depth of 1200-1500m, according to the Xingtai municipal land and resources department.

There are 17 coal-bearing seams in the exploration area, with a total thickness of 17.88m.
The coal types comprise gas coal, fat gas coal and 1/3 coking coal, featuring low to medium ash, low and medium-high sulfur, medium-high and high volatile matter, low phosphorus, and medium and high calorific value, it noted.

Guangzong exploration area is 33km east to Jingguang rail line and 35km west to Jingjiu rail line.

Over 20 investment banks HSBC, Deutsche, Credit Suisse, Citi and more banks to pitch for Mongolian mine privatization

Tuesday, Feb1, 2011
Over 20 investment banks will next month submit written proposals for the privatisation of Mongolia's Tavan Tolgoi coal mines that could value it at up to $8 billion, The Independent on Jan 30 reported.
The newspaper said bankers from HSBC, Deutsche, Credit Suisse, Citi and Macquarie are among those who will present proposals to list the coal group in either Hong Kong, London or give it a dual listing.
It said presentations will be held between Feb 10 and 15 in the Mongolian capital Ulan Bator, with six banks expected to win roles in the flotation, expected by the first half of next year.
Tavan Tolgoi, which could become one of the world's largest coal mines, is owned by Mongolian government entity Erdenes MGL. (sourced:reuters)

Indian coking coal imports increase in 2010, 33% YoY JUMP

Tuesday, Feb 01, 2011

India imported 36.1 million tonnes of coking coal in 2010, a 33% year-on-year jump, according to The Salva Report.
Australia was by far the biggest supplier of coking coal to the Asian nation, contributing 84% with US imports accounting for 5%, New Zealand 3% and South Africa 2.3%, Salva Reports.

Indian thermal coal imports for Nov dropped to 5.3 million tonnes, from the record 6.4 million tonnes imported in October, according to Salva which said the fall could be attributed to increased domestic production throughout October and the rising cost of imported thermal coal.

Yanzhou Coal wins bid for coal mining rights in Inner Mongolia

Tuesday, Feb1, 2011 By China Knowledge

Yanzhou Coal Ordos Neng Hua Co Ltd, a wholly-owned subsidiary of Yanzhou Coal Mining Co Ltd, recently won the bid for the coal mining rights of the Zhuanlongwan coal mine in Dongsheng coal field in North China's Inner Mongolia Autonomous Region, sources reported.
The subsidiary has entered into a confirmation agreement with the region's Department of Land and Resources and will pay for 7.8 billion yuan for the mining rights.

The Zhuanlongwan coal mine, covering an area of 43.51 square kilometers, has total coal reserves of 548 million tonnes and is designed to produce 5 million tonnes of coal each year.

Bathurst pushes on with NZ coal projectBy

February 1, 2011
BATHURST Resources is moving ahead with efforts to gain resource consents for its plans to mine at the Buller Coalfield on the West Coast of New Zealand’s South Island, after delays following the Pike River coal mine disaster.

Perth-based Bathurst Resources completed the purchase of the Buller coal project from L&M Energy during the December quarter. The total acquisition cost was $US40 million ($40.18m), with two further performance costs of $US40m each when the project moves into production.
In its activities report for the December quarter, Bathurst Resources said its focus for the period had been on completing a definitive feasibility study for the Escarpment and Deep Creek blocks at the Buller project.

The study estimated the capital cost of the Buller project to be about $US50m.
Bathurst Resources is aiming to produce premium hard coking coal from the Buller project in the December quarter of 2011, with production reaching two million tonnes per annum by late 2013.
The company said that in the March quarter, regulatory approvals and consents for the development of the Buller project, as well as the establishment of key contracts for the construction of a coal preparation plant and related facilities, were its key focus.
The start of operations at the Buller project was conditional on receiving resource consents and access and concession permits from the Department of Conservation.
Progress on the applications had been delayed in the wake of the tragedy at Pike River, Bathurst Resources said.
“In early 2011 however, Bathurst resumed discussions with the local communities and regulatory bodies to progress these applications for the Buller project,” the company said.
An explosion at Pike River, also on the West Coast, in November killed 29 men. (Sourced:The Australian)

Indonesia Blocks 3.5 Million Tons of Coal Shipments

February 1, 2011,
Bloomberg, By Bambang Djanuarto and Yoga Rusmana

Indonesia’s government has blocked shipments of at least 3.5 million metric tons of coal since Jan. 15, after a delay in issuing new trading permits, an industry group said.
About 70 vessels, each with a capacity of 50,000 tons, are stuck at ports because surveyors checking shipments won’t allow the exports before traders obtain fresh licenses from the Energy and Mineral Resources Ministry, said Bob Kamandanu, chairman of the Indonesian Coal Mining Association.
“Some traders have declared force majeure because of the permit issue,” Kamandanu told reporters in Jakarta today, without identifying them. “More shipments will be halted as a lot more ships are entering the ports.”

Indonesia’s mining law of 2009 requires traders to convert old permits into new trading licenses issued by the Energy and Mineral Resources Ministry before they ship products overseas, said Djunaedi, head of mining exports at the Trade Ministry said Jan. 26. The ministry halted the process of giving out new licenses while waiting for the ministerial decree to be issued, Djunaedi, who uses one name, said at the time.
Alberth Yusuf Tobogu, export director of mining and industry products at the Trade Ministry, and Djunaedi didn’t answer two calls to their mobile phones seeking comment.
Force majeure is a legal clause that allows producers to miss deliveries because of circumstances beyond their control.
Indonesia, the world’s largest thermal coal exporter, has since 2008 required all exports of coal, metal ores and concentrate to be verified by government-appointed surveyors to prevent illegal shipments of commodities.

Indonesian Export Jumps 35.38% in 2010

Tuesday, 01 February 2011 18:08
Indonesian export totaled US$157.73 billion in 2010, jumped 35.38% from US$116.51 billion in 2009. The export made its record during the history in December 2010 which totaled US$16.8 billion.
"Export continues rising and to record new high," BPS Chairman Rusman Heriawan told in press briefing today.

Oil and gas export totaled US$129.68 billion, mainly supported by mineral fuel mainly coal which accounted for US$18.73 billion and fat and vegetable oil which totaled US$16.29 billion.
The main contributors for export by countries are Japan (US$16.5 billion), China (US$14.07 billion) and United States (US$13.3 billion) which accounted for 33.85% of total export. Export to European union reached US$17.07 billion.

Meanwhile, import surged 40.05% to reach US$135.61 billion in 2010, compared to US$96.83 billion in 2009. Import of non oil and gas totaled US$108.24 billion.
The main contributors for import by countries are China (18.19%), Japan (15.62%), Singapore (9.29%) and European Union (9.02%).
For 2010, Indonesia recorded surplus of US$22.13 billion. (sourced:Theindonesiatoday.com)

S. Sumatra coal railway to be completed on schedule

Tue, 01 Feb.2011

The Jakarta Post reported that, despite land acquisition problems, state coal mining company PT Bukit Asam is upbeat that the development of a railway track connecting Tanjung Enim and Tanjung Api Api port in South Sumatera will be completed on schedule in 2014.
Bukit Asam president director Sukrisno acknowledged that resistance during the land acquisition processes might affect the progress of the railway’s development, but he claimed that his company had taken all necessary measures to ensure that the project was finished on time, as quoted by The Jakarta Post.

“We’ve cooperated with local administrations and speak heart-to-heart with people living in the region. We believe that solutions will be reached in the near future,” he told House of Representatives Commission VII overseeing energy and mining at a hearing session on Monday.
Sukrisno said that people were afraid of losing sources of income if they moved to other locations prepared by the company and local administrations. To address their concerns, he said that Bukit Asam ensured it would assist people in creating alternative sources of income in their new places of residence.

“We’ll work together with local administrations to build not only their new homes, but also their livelihoods,” Sukrisno said, adding that the relocations would begin in March this year.
The US$1.65 billion (around Rp 15 trillion) railway track would be expected to start operations in 2014, he said. (source:TheJakarta Post)

ICEX, Iron ore future contract on Tuesday, 01, Feb 2011

Commodity............................Expirty..................LTP.................% Change
IRONORE62FINES..............29APR 2011........7720.00............ 1.07%
IRONORE62FINES..............31MAR-2011.......8126.50........... 1.04%
As On :01-Feb-2011 07:35 PM IST

(Know latest updated at :http://www.icexindia.com/)

BHP puts coal prospecting rights up for sale in SA

1 Feb 2011

Johannesburg–BHP Billiton Energy Coal South Africa (Becsa) will divest some of its currently undeveloped coal prospecting rights to focus on its existing operations throughout South Africa.
Becsa on Monday reported that other industry members would be better positioned to develop these rights, potentially converting them into mining rights, in a more timely way.
The prospecting rights up for tender included Hartogshof, T-Project, Davel, Pegasus, Theunissen, Waterberg, Newcastle, Ermelo and Remhoogte.

“The divestment process will provide industry participants with an opportunity to maximise the benefit to the South African economy, which in turn can complement government’s increased focus on economic growth and employment creation,” said BHP Billiton South Africa chairperson Dr Xolani Mkhwanazi.
The company believed that the sale would contribute towards the objectives of the Mineral and Petroleum Resources Development Act and Mining Charter by promoting socioeconomic development and expanding opportunities for historically disadvantaged South Africans.
President Manie Dreyer noted that Becsa would continue to contribute towards the growth and welfare of its employees and the sustainable development of its host communities.
“We also aim to deliver value to our shareholders through the continued development of our existing operations. This divestment process will have no impact on Becsa’s current workforce,” he said.
BHP Billiton invited exploration, mining and development companies to participate in a public tender process for the sale of these rights.(sourced:Mariaan Webb)

Posco says no plan to develop coal mine in Mozambique

Tueday, 01, February 2011
By: Reuters
SEOUL– South Korea's POSCO , the world's No.3 steelmaker, said on Tuesday that it does not plan to develop a coal mine in Mozambique, denying its statement over the weekend for such a plan with Vale .
"We don't have any plan to develop a coal mine in Mozambique with Vale and our earlier statement had factually wrong information," POSCO said in a statement on Tuesday.
POSCO, which aims to double raw material self-sufficiency to 50% by 2014, has earmarked 700-billion won ($627-million) in raw material investment this year.

Last week, POSCO signed a memorandum of understanding with Anchor in Zimbabwe to build a joint mining venture to develop chrome, coal and other raw materials. (sourced:Reuters)

Mineral Resources backs ArcelorMittal’s push for iron ore supply deal

By,Sibonelo RadebeTuesday, 01 Feb.2011

The Department of Mineral Resources (DMR) seems to have thrown its weight behind ArcelorMittal SA which seeks to reinstate the 2001 iron ore supply agreement with Kumba’s Sishen mine in the Northern Cape.
This is clearly spelt out in the affidavit of DMR’s director general Sandile Nogxina who was responding to Kumba in the legal battle for a 21.4% share of Sishen mining rights.
ArcelorMittal has threatened to close down its Saldanha steel manufacturing plant if a favourable iron ore supply arrangement was not found.
Nogxina said the Sishen mineral rights were of strategic importance and thus the decision as to who received the 21.4% portion of the Sishen rights should be alive to broader public interests which far outweighed Kumba’s own parochial interests.
ArcelorMittal held a 21.4% share of Sishen’s mining rights which came with a special iron ore supply agreement from 2001.

In this agreement, ArcelorMittal was entitled to receive 6.25 million tons a year of iron ore from Sishen at cost plus 3%.
Arcelor Mittal lost the 21.4% share of Sishen’s mining rights after it failed to convert them into new order mining rights in 2009.
Kumba, which holds 78.6% of the Sishen rights, is claiming the former ArcelorMittal portion for itself. A firm styled as a black economic empowerment (BEE) entity, Imperial Crown Trading (ICT), successfully applied for prospecting rights over the 21.4% share of Sishen.
After ArcelorMittal failed to convert its rights, Kumba moved to rescind the supply agreement.
An interim supply agreement was put in place after the intervention of government. An arbitration process was put in place and an interim measure which was set to run between March 1 and July 31, 2010, sees ArcelorMittal pay between $50 and $70 per ton. This applies to a maximum of 520000 tons per month.

Nogxina said there were sound reasons for the splitting of the mining rights to the Sishen iron oreed in 2001. These reasons remain valid, said Nogxina. “The mere fact that ArcelorMittal has through its negligence caused its old order rights to lapse, does not in any way affect this reasoning.”
Nogxina added that in November last year, cabinet announced that government would establish an interdepartmental task team which would look into the re-establishment of an arrangement to allow ArcelorMittal and other steel producers to source the 21.4% share of Sishen at cost plus 3%.
This arrangement would be modelled in a way that produces steel prices that are in line with the cheap iron ore supply agreement. Kumba refused to enter into such an arrangement, said Nogxina.
He added that the manner in which the output of the Sishen mine was handled had a direct impact on the local steel industry.
Nogxina said Kumba’s behavior around the Sishen matter and mainly the relentless pursuit of the Sishen rights that it did not own and the suspension of the supply agreement was motivated by parochial interest.
Kumba was driven simply by the quest for profits, said Nogxina.
“I understand that and I have no difficulty with it”.
Kumba’s financial strength benefits the national fiscus, the local community and its BEE shareholders. However the minister was required to pursue a broader range of interests than those affected by Kumba’s commercial success, said Nogxina.
Kumba is expected to respond to DMR’s claims in court proceedings. But the Anglo American subsidiary has maintained that the supply arrangement with ArcelorMittal “became inoperative in its entirety as of May 1, 2009”. (sourced:thenewage.co.za)

Vale, ArcelorMittal among 15 bidding for Mongolia coal mine

By Miyoung Kim and Yuko Inoue
SEOUL/TOKYO Mon Jan 31, 2011 (Reuters)

Resource-hungry Asian states are locking horns with steelmaker ArcelorMittal and miner Vale to develop the world's largest untapped coking coal deposit in Mongolia, scrambling for raw materials to produce steel.
China, Japan and South Korea are scouring the world from Africa, India, Australia and South America and snapping up iron ore and coking coal assets to diversify from heavyweight suppliers such as BHP Billiton and Rio Tinto.

Asian private and state-linked firms are among the 15 bidders vying for Tavan Tolgoi coking coal project, along with the world's top steelmaker ArcelorMittal SA and the top iron ore miner Vale of Brazil, according to a source with direct knowledge of the matter.
Mongolia, while poor and undeveloped, sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade.
The country's fledgling democratic government plans to keep ownership of the mine, estimated to house a total 5 billion tonnes of coal reserves, and give strategic investors a chance to develop its western block on a contract basis.

Over 20 investment banks will this month submit written proposals for the privatisation of Tavan Tolgoi, which could value it at up to $8 billion, The Independent on Sunday reported this week.
"It is the biggest undeveloped coking coal mine in the world, it is strategically important and that's why you see so many interested parties," said Carol Cao, an analyst with Macquarie in Hong Kong.
South Korea bidders in the race also included Xstrata, U.S. coal miner Peabody and consortia led by South Korea, China, Japan and India.
State-run Korea Resources Corp said its consortium is formed of nine Korean firms, two Russian firms and four Japanese companies to develop the Tsankhi block, which is estimated to have 1.2 billion tonnes of coal reserves.
"Mongolia has rich untapped reserves and the block in the auction is very attractive, as it is one of the few large-sized coal mines in the world left undeveloped," Korea Resources Corp said in a statement.

UNCERTAINTY
Steelmakers across Asia have been scrambling to secure new supply channels after devastating floods hit Queensland -- the heart of Australia's coal mining sector -- in December and January.
The Mongolian government is likely to decide preferred bidders in mid-February, after the Lunar New Year holiday starting this week, Korea Resources said.
But auction, which closed on Monday after two weeks of delay, faces uncertainty, as Mongolia has struggled to develop a consistent strategy when it comes to overseas companies buying into national assets.

It has long frustrated the global resources industry for dragging its feet on investment decisions. The government, hobbled by indecision and bureaucratic infighting, took years to conclude the agreement to develop the Oyu Tolgoi copper and gold project.
An initial 2009 bidding auction for the Tavan Tolgoi coal project attracted consortia from South Korea, Japan and Russia as well as mining giants such as BHP, Vale, India's Jindal, and China Shenhua Energy.
But the government abruptly announced the auction would be cancelled early last year and said the state would maintain control and foreign firms could bid for licenses to develop and run the mine.
A top executive at a Japanese trading firm said BHP, which previously expressed interest in the project, had pulled out.

BIDDERS
Members of South Korean bidding group include steelmaker POSCO, utility firm KEPCO, trading firms LG Corp and Daewoo International Corp, Russian Railways and Japanese trading houses Itochu Corp, Sumitomo Corp, Marubeni Corp and Sojitz Corp.
Sources told Reuters on Monday competing Mitsui is leading a Japanese consortium, which has partnered with China's state-run Shenhua Group.
Some investors said winning the deal could add lustre to the winner's stock price over the long-term. (Reporting by Rebekah Kebede in PERTH, Ju-min Park in SEOUL, sourced: reuters)

Xstrata 2010 coal output down 6 pct, copper steady

* Annual coal output down 6 pct to 79.9 mln tonnes
* Mined copper up 0.7 pct, copper cathode off 1.6 pct
* Coal and copper Xstrata's most profitable products
LONDON Feb 1, 2011 (Reuters) 8:03am GMT

Mining group Xstrata Plc (XTA.L) released annual production and price data on Tuesday.
Details of main products are below in tonnes, except coal in millions of tonnes.
Commodity........ Y-Y Pct(%)........Chang FY 2010......FY 2009
Coal*........................ -5.7...................... 79.9................................ 84.7
Ferrochrome........... 48........................1,165,000...................... 786,000
Copper cathode....... -1.6...................... 715,499......................... 727,050
Mined copper.......... 0.7.........................913,469..........................906,898
Mined nickel............ 6.3..........................60,670............................57,052
Zinc metal................ - 7.2..................... 765,867............................ 825,208
Zinc concentrate...... -1.0......................1,022,252.........................1,032,755
*Coal figure excludes production from Prodeco
Details of selected prices are below in dollars per tonne, except ferrochrome in cents per pound.
Commodity................... Y-Y Pct(%)........Chang FY 2010.....FY 2009
Australian thermal coal......... 6.7........................ 85.70..................80.30
S.African thermal coal........... 9.3........................ 74.40..................68.10
Americas thermal coal........... -1.2........................ 72.60..................73.50
Australian coking coal............ 41........................ 204.30..................145.00
Ferrochrome........................... 46........................ 124.30..................85.00
LME copper............................. 49........................ 7,681.................... 5,150
LME nickel............................... 48........................ 21,809.................. 14,712
LME zinc.................................. 30........................ 2,159.................... 1,659
(Reporting by Julie Crust; editing by Paul Hoskins, sourced:reuters)

Sarolangun coal mine in Jambi acquired PT Aneka Tambang Tbk (ANTM)

Jakarta, APBI-ICMA: 01/29/2011
Citing news reported that PT Aneka Tambang Tbk (ANTM) fulfill his ambition of coal business. Emiten yang dikendalikan pemerintah ini telah mengakuisisi tambang batubara Sarolangun di Jambi. Issuers that it has acquired the government-controlled coal mines Sarolangun in Jambi. ANTM melakukan akuisisi tersebut melalui anak perusahaannya, PT Indonesia Coal Resources (ICR). ANTM make the acquisition through its subsidiary, PT Indonesia Coal Resources (ICR).

"Nilai akuisisi Rp 92,5 miliar. Seluruh dana pembelian berasal dari kas ICR sendiri," kata Sekretaris Perusahaan ANTM Bimo Budi Satriyo. "The acquisition of USD 92.5 billion. All funds derived from cash purchases ICR itself," said Ben ANTM Company Secretary Budi Satriyo. Dia menambahkan, kas ICR yang digunakan untuk akuisisi merupakan modal dasar yang disetor ANTM. He added, ICR cash used for acquisitions is a paid-up capital of ANTM. Bimo menuturkan, tambang Sarolangun termasuk kategori greenfield alias belum pernah dikembangkan. Ben said, the mine Sarolangun including greenfield aka category has never been developed. Sorolangun mulai berproduksi sejak Juni 2010. Sorolangun started production since June 2010. Selama semester kedua tahun lalu, volume produksi batubara di tambang Sarolangun mencapai 200.000 ton. During the second semester last year, the volume of coal production in mines Sarolangun reached 200,000 tons. ICR menargetkan volume produksi di tambang tersebut mencapai 41.667 metrik ton batubara per bulan. ICR target volume in the mine production reached 41,667 metric tons of coal per month. Artinya untuk tahun 2011, Sarolangun ditargetkan memproduksi hingga 500.000 ton. This means that for 2011, targeted Sarolangun produce up to 500,000 tons. Cadangan batubara di tambang Sarolangun diperkirakan 8,25 juta ton. Sarolangun mine coal reserves estimated at 8.25 million tonnes. Batubara yang ditambang di Sarolangun termasuk batubara dengan kadar kalori menengah. Coal is mined in Sarolangun including coal with high calorific content. Meski baru diakuisisi, hasil produksi batubara dari Sarolangun sudah memiliki pembeli. Although the newly acquired, the result of coal production from Sarolangun already have a buyer. "Saat ini penjualan batubara Sarolangun dilakukan ke beberapa konsumen dalam negeri dan ke India," tutur Bimo. "We have done Sarolangun coal sales to several customers in the country and to India," said Ben.

Sebagai pemegang saham pengendali tambang Sorolangun, ICR akan bertanggung jawab penuh pada pengurusan bisnis batubara. As the controlling shareholder of mine Sorolangun, ICR will take full responsibility in the maintenance of the coal business. Bimo menambahkan pembentukan ICR merupakan bagian dari strategi pengembangan bisnis ANTM. Ben added the establishment of ICR is part of the business development strategy ANTM. Batubara yang dihasilkan dari tambang Sarolangun akan digunakan untuk bahan bakar pembangkit listrik yang akan dibangun ANTM di fasilitas produksi feronikel. Coal produced from the mine Sarolangun will be used to fuel power plants to be built ANTM in ferronickel production facility. "Namun kami akan tetap fokus ke produksi nikel dan emas," ujar nya. "But we will remain focused to the production of nickel and gold," he said.
(Source:www.kontan.co.id)

Some Indonesia coal traders declare force majeure on rule change-assoc

JAKARTA Feb 1,2011
(Reuters) Some Indonesian coal traders have declared force majeure after a trade rule change, with around 60-70 vessels stuck in various ports and 3.5 million tonnes unable to be shipped, the chairman of the Indonesian Coal Mining Association said on Tuesday.

It was not immediately clear which trading companies and which buyers were affected, Bob Kamandanu told reporters, after a new trade regulation caused the delays in the world's top thermal coal exporter.
The problems have come after the trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to traders who are in the process of reapplying for trading permits under a new coal and mining law system. The surveyor reports are documents required for shipping the fuel.
The rule appeared to affect traders who do not own mines and buy blended coal, or aggregate coal, from various small miners, as well as traders who buy coal in barges. It was not clear which firms had declared force majeure.

"The vessels have been stuck in various coal ports around the country. Stockpiles have been building up because the coal can't be loaded to vessels," Bob Kamandanu said.
Most of the vessels were shipping the coal to buyers in India and China, he said.
Indonesia has required exports of mining products including coal and tin to be checked by surveyors before shipping them out as the country seeks to keep illegal mining in check and boost revenue from the sector.

"They have submitted requests for processing permits to the energy and mines ministry since three months ago but with no response," Kamandanu told reporters.
Surveyor reports show the origin of the cargoes and are used to calculate royalties.
The trade rule so far has not affected shipments from coal firms such as top producers Bumi Resources and Adaro Energy , as surveyors are still allowed to issue reports for coal exports from producers.
But it could affect the country's production if the delays run for a longer period, said Kamandanu.
The delays come as Indian traders and end-users are close to resuming prompt buying on thermal coal after a break of several months, some of India's largest traders said last week.
Australia's thermal coal prices on the globalCOAL weekly index, a benchmark for Asia, closed at $127 per tonne for the week to date on Monday, up from $124.25 a week earlier.(Reporting by Alfian; Writing by by Fitri Wulandari; Editing by Neil Chatterjee, sourced: reuters)

Iranian steel output in first 8 months surges

Tuesday, 01 Feb 2011
According to the Iranian Mines and Mining Industries Development & Renovation Organization, during the first 8 months of current Iranian year that ends on November 21st 2010, around 7.523 million tonnes of rolled steel products produced in IMIDRO's affiliated companies, up from 6.597 million tonnes during the same period of last year.

In the first 8 months of current Iranian year, about 1.309 million tonnes I Beam, 2.143 million tonnes debar, 3.779 million tonnes HRC, 0.220 million tonnes wide Plate, 0.039 million tonnes coil, 0.020 million tonnes pipe and around 0.011 million tonnes of other steel products rolled in IMIDRO's affiliated companies.

Mobarakeh steel by production of 3.026 million tonnes of HRC in this period was known as the countries biggest sheet producer. During this period around 1.826 million tonnes of long products and sections were produced in Esfahan Steel Company.
About 7.581 million tonnes of semi finished products also were made in IMIDRO's affiliated companies in the first 8 months of current Iranian year.

In the last Iranian year which ended at March 20th 2010, about 10.236 million tonnes of steel products were rolled in IMIDRO's affiliated companies. Because of government's plan to increase steel production, ongoing steel projects and remaining months to the end of year, it is expected that Steel production in Iran by the end of this year would surge that of last year.
(For more information visit www.irsteel.com)

Usiminas plans to sell Ternium stake - Report

Tuesday, 01 Feb 2011

Bloomberg reported that Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker, said it will sell as much as 14.3% of rival Ternium SA to boost cash reserves.
The stock will be sold in a public offering scheduled to be priced in the second week of February, according to a regulatory filing from the Belo Horizonte based company, known as Usiminas.
Ternium and controlling shareholder Techint Group agreed to buy shares of Ternium worth USD 250 million as part of the deal.(sourced:Bloomberg)

MEPS announces global crude steel output forecast for 2011

Tuesday, 01 Feb 2011
MEPS estimates world steel output, in 2010, at just over 1.4 billion tonnes. This equates to a rise of over 190 million tonnes as compared with 2009. China, Japan and the US have contributed over 50% of the growth. Steel production in Germany and South Korea has also shown significant expansion.
The majority of countries have recorded double digit percentage rises in 2010 relative to 2009. The largest of these are found in the more economically developed regions like European Union, North America and Oceania, whose markets declined the most in the downturn of 2009.
The economic outlook for 2011 is cautiously optimistic. In the West, certain sectors of the economy are performing well. However, the construction market remains depressed and this continues to dampen demand for steel, especially long products. Government spending cuts and the fragile financial situation could pose further negative risks.
In 2011, strong growth in steel production is expected in South America and the Middle East. Although the impact of this will be relatively small on the world total when compared to the dominance of China. Gains in the industrialized nations are likely to be modest. MEPS forecasts a YoY increase of approximately 4.4% for global steel production in 2012.
MEPS global crude steel production forecast.

Region	2010 (e)	2011 (f)
EU 27	172.9	178.2
Americas	155.3	162.1
Asia	900.2	948.3
Others	186.7	196.5
World Total	1415.0	1485.0

In million tonnes

(e) - Estimate

(f) - Forecast



(Sourced from MEPS - World Steel Outlook)