Monday, 16 Jan 2012
ET reported that as many as 105 sponge iron units face a serious threat of being shut down amid deepening raw material crisis in Chhattisgarh.
Mr Anil Nachrani president of Chhattisgarh Sponge Iron Manufactures' Association said “Some 20 sponge iron units have been shut down since October 2011 and others have cut short production up to 60% as sponge units are just getting 4 million tonne iron ore as against the requirement of 12 million tonne per annum.”
He said “The future of sponge iron units in the state looks very bleak all of a sudden. The production has come down to a meager 2.5 million tonne per annum from the earlier figure of around 8 million tonne per annum.”
He said “I don't see any improvement in the sponge iron industry in the near future. If things do not improve fast, then all units will have to be shut down. After all, how long will industrialists run loss-making units?”
According to Mr Nachrani, Chhattisgarh accounts for nearly 30% of India's total sponge iron output.
He said the massive decline in sponge iron production was mainly due to the Odisha government's decision to close down dozens of iron ore mines since July 2009 in a bid to cleanse the state of tax evaders and those mining without licenses.
"Some two years back, the iron ore availability was satisfactory as we were getting 9 MT per annum from Odisha and 3 MT per annum from NMDC (National Mineral Development Corporation) from its mines in Dantewada district.
(Sourced from ET)
Showing posts with label Chhattisgarh. Show all posts
Showing posts with label Chhattisgarh. Show all posts
Monday, January 16, 2012
Thursday, January 5, 2012
Essar to use low-grade iron ore fines at Hazira
Thu, Jan05, 2012
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Friday, December 2, 2011
Chhattisgarh CM seeks additional iron ore supply from NMDC
Friday, 02 Dec 2011
PTI reported that Chhattisgarh chief minister Dr Raman Singh has called on steel minister Mr Beni Prasad Verma and sought doubling of iron ore supply to 5 million tonnes from National Mineral Development Corporation to state based steel units.
Mr Singh after meeting Mr Verma said “Chhattisgarh is facing a crisis. Our iron and steel mills are on the verge of closure. We have sought the Centre's intervention for doubling it to 5 million tonne from present 2.5 million tonne on priority basis.”
He said “All major iron ore deposits in the state are with NMDC, which is producing about 30 million tonne per annum, but a major part is either exported or supplied to industries outside Chhattisgarh while the industry in state is on the verge of closure.”
He said “Also, there is a substantial increase in the capacity of all units over the years in the state.”
Dr Singh added Mr Verma had assured that the concerns of the industry in the state would be addressed.
(Sourced from PTI)
PTI reported that Chhattisgarh chief minister Dr Raman Singh has called on steel minister Mr Beni Prasad Verma and sought doubling of iron ore supply to 5 million tonnes from National Mineral Development Corporation to state based steel units.
Mr Singh after meeting Mr Verma said “Chhattisgarh is facing a crisis. Our iron and steel mills are on the verge of closure. We have sought the Centre's intervention for doubling it to 5 million tonne from present 2.5 million tonne on priority basis.”
He said “All major iron ore deposits in the state are with NMDC, which is producing about 30 million tonne per annum, but a major part is either exported or supplied to industries outside Chhattisgarh while the industry in state is on the verge of closure.”
He said “Also, there is a substantial increase in the capacity of all units over the years in the state.”
Dr Singh added Mr Verma had assured that the concerns of the industry in the state would be addressed.
(Sourced from PTI)
Sunday, October 9, 2011
Indian government to review 236 MoUs for setting up steel plants
Sunday, 09 Oct 2011
It is reported that unsatisfied with the progress of proposed steel projects entailing estimated investment of INR 11 lakh crore, the government will review hundreds of MoUs signed by companies in past 5 to 6 years as most of them have remained only on paper.
Mr Beni Prasad Verma steel minister said "Our companies have mastered the art of signing MoUs as most of them are on paper only. As many as 236 such agreements have been signed in last 5-6 years for setting up iron and steel units but most of them have neither acquired land nor have got mining leases to set up their units."
Most of the MoUs have been signed between private corporate houses with several states including Karnataka, Orissa, Chhattisgarh and Jharkhand. The government had set the target of producing 120 million tonnes of steel by March 2012 of which only 75 million tonnes to 78 million tonnes capacity has been created so far.
According to experts, the target looks unachievable in view of delays in setting up plants.
(sourced from ET)
It is reported that unsatisfied with the progress of proposed steel projects entailing estimated investment of INR 11 lakh crore, the government will review hundreds of MoUs signed by companies in past 5 to 6 years as most of them have remained only on paper.
Mr Beni Prasad Verma steel minister said "Our companies have mastered the art of signing MoUs as most of them are on paper only. As many as 236 such agreements have been signed in last 5-6 years for setting up iron and steel units but most of them have neither acquired land nor have got mining leases to set up their units."
Most of the MoUs have been signed between private corporate houses with several states including Karnataka, Orissa, Chhattisgarh and Jharkhand. The government had set the target of producing 120 million tonnes of steel by March 2012 of which only 75 million tonnes to 78 million tonnes capacity has been created so far.
According to experts, the target looks unachievable in view of delays in setting up plants.
(sourced from ET)
Tuesday, August 16, 2011
Over 82000 illegal mining cases in 2010
Tuesday, 16 Aug 2011
Illegal mining activities witnessed a sharp spike in India during 2010, with 82,330 cases detected by law enforcement agencies during the year, almost double the 41,578 cases unearthed in 2009.
Mines Minister Mr Dinsha Patel informed the Rajya Sabha that the rate of illegal mining appears to be accelerating, as government agencies detected as many as 24,405 cases in the first three months (January to March) of 2011, almost 30% the number of such activities seen in the whole of 2010.
In his reply, Mr Patel said that in 2010, the highest number of illegal mining cases were reported in Maharashtra, at 34,384, which accounted for about 41.64% of the cases registered across the nation during the year. The number of cases detected in Maharashtra in 2010 was 4.14 times the number seen in 2009, when 8,270 cases were reported.
However, he did not specify the minerals for which large scale illegal mining activities were taking place.
Illegal mining activities in Karnataka, which is under the Supreme Court scanner, have risen by 2.93 times, with 4,949 cases reported in 2010, as against 1,687 such incidents in 2009.
Similarly, other mineral rich states like Andhra Pradesh and Chhattisgarh have also reported a huge rise in illegal mining cases, reporting 17,882 and 2,942 cases, respectively, in 2010. These are about 1.54 times and 2.72 times higher than the 2009 figures for the respective states.
Data provided in Mr Patel's reply showed that the above four states accounted for almost 73% of the illegal mining cases lodged in 2010, at 60,057.
It further said that illegal mining activities have been continuously rising and between January and March this year, with 10,349 cases detected in Maharashtra alone, about 30% of the total number of cases reported in 2010.
Moreover, Karnataka reported 1,263 illegal mining cases between January and March this year, 25% of the 2010 figure for the state.
Similar stories have been reported in Andhra Pradesh and Chhattisgarh, where 4,594 and 923 illegal mining cases were detected in the first three months of 2011.
(Sourced from ET)
Illegal mining activities witnessed a sharp spike in India during 2010, with 82,330 cases detected by law enforcement agencies during the year, almost double the 41,578 cases unearthed in 2009.
Mines Minister Mr Dinsha Patel informed the Rajya Sabha that the rate of illegal mining appears to be accelerating, as government agencies detected as many as 24,405 cases in the first three months (January to March) of 2011, almost 30% the number of such activities seen in the whole of 2010.
In his reply, Mr Patel said that in 2010, the highest number of illegal mining cases were reported in Maharashtra, at 34,384, which accounted for about 41.64% of the cases registered across the nation during the year. The number of cases detected in Maharashtra in 2010 was 4.14 times the number seen in 2009, when 8,270 cases were reported.
However, he did not specify the minerals for which large scale illegal mining activities were taking place.
Illegal mining activities in Karnataka, which is under the Supreme Court scanner, have risen by 2.93 times, with 4,949 cases reported in 2010, as against 1,687 such incidents in 2009.
Similarly, other mineral rich states like Andhra Pradesh and Chhattisgarh have also reported a huge rise in illegal mining cases, reporting 17,882 and 2,942 cases, respectively, in 2010. These are about 1.54 times and 2.72 times higher than the 2009 figures for the respective states.
Data provided in Mr Patel's reply showed that the above four states accounted for almost 73% of the illegal mining cases lodged in 2010, at 60,057.
It further said that illegal mining activities have been continuously rising and between January and March this year, with 10,349 cases detected in Maharashtra alone, about 30% of the total number of cases reported in 2010.
Moreover, Karnataka reported 1,263 illegal mining cases between January and March this year, 25% of the 2010 figure for the state.
Similar stories have been reported in Andhra Pradesh and Chhattisgarh, where 4,594 and 923 illegal mining cases were detected in the first three months of 2011.
(Sourced from ET)
Friday, July 8, 2011
GMDC seeks alternative coal block in Chhattisgarh
Friday, 08 Jul 2011
Gujarat Mineral Development Corporation Ltd has requested the central government for a coal block in Chhattisgarh for a proposed thermal power plant in the eastern State.
The request comes as the environment ministry is refusing to give the green signal for coal mining in the Morga II block due to environment issues. Due to this delay, GMDC's thermal power generation plans are likely to go haywire.
Mr VS Gadhvi MD of GMDC told Business Line that “We are still hopeful of an early decision in this regard.”
He said the ministry of coal appeared convinced of GMDC's request but no reply has been received for an alternative coal block.
Nearly five years ago, the listed company, essentially a mining major, was allotted coal blocks in Chhattisgarh (Morga II) and Orissa (Naini). In 2008, it had planned to set up three power plants in a joint venture to generate 4,500 megawatt using indigenous coal based thermal power technology in the two coal rich States. The total investment planned was nearly INR 20,000 crore.
It was a unique business model in which GMDC would provide assured coal supplies to private parties who would, in turn, ensure supply of a mandated 2,750 MW to Gujarat as its share by 2012.
The Naini coal block had been jointly allotted to GMDC and the Puducherry Industrial Investment Promotion Corporation.
Mr Gadhvi further said that “We have got possession of land there and the Government of India is now carrying out exploration. After its completion, we will apply for environmental clearance for mining coal in this block as well.”
Morga-II and Naini have mineable coal reserves of 350 million tonnes and 250 million tonnes respectively, spread over 21 square kilometer and 10 square kilometer areas.(sourced from BL)
Gujarat Mineral Development Corporation Ltd has requested the central government for a coal block in Chhattisgarh for a proposed thermal power plant in the eastern State.
The request comes as the environment ministry is refusing to give the green signal for coal mining in the Morga II block due to environment issues. Due to this delay, GMDC's thermal power generation plans are likely to go haywire.
Mr VS Gadhvi MD of GMDC told Business Line that “We are still hopeful of an early decision in this regard.”
He said the ministry of coal appeared convinced of GMDC's request but no reply has been received for an alternative coal block.
Nearly five years ago, the listed company, essentially a mining major, was allotted coal blocks in Chhattisgarh (Morga II) and Orissa (Naini). In 2008, it had planned to set up three power plants in a joint venture to generate 4,500 megawatt using indigenous coal based thermal power technology in the two coal rich States. The total investment planned was nearly INR 20,000 crore.
It was a unique business model in which GMDC would provide assured coal supplies to private parties who would, in turn, ensure supply of a mandated 2,750 MW to Gujarat as its share by 2012.
The Naini coal block had been jointly allotted to GMDC and the Puducherry Industrial Investment Promotion Corporation.
Mr Gadhvi further said that “We have got possession of land there and the Government of India is now carrying out exploration. After its completion, we will apply for environmental clearance for mining coal in this block as well.”
Morga-II and Naini have mineable coal reserves of 350 million tonnes and 250 million tonnes respectively, spread over 21 square kilometer and 10 square kilometer areas.(sourced from BL)
Monday, March 21, 2011
Monnet Ispat acquires coal mine in Indonesia
Mon March 20, 2011, 0:05 IST
By Shubhashish
By Shubhashish
Mumbai: Monnet Ispat and Energy has bought a 100-million tonne coal mine in Indonesia, sources say. The announcement is likely to be made on Monday.
An official close to the deal told Business Standard, “The company has been in serious talks for the past 5 months to buy a 100-million tonne thermal coal mine in Indonesia. The acquisition is now complete and the announcement will happen on Monday.”
The official said the company has been looking at 4-5 coal mines in Indonesia and zeroed on this particular mine after careful inspection and due diligence. Company sources did not comment for the story.
Monnet Group's power projects fall under its subsidiary, Monnet Power Company. The subsidiary is currently setting up a 1050-Mw power plant in Angul, and has captive coal mines to feed the plant. The plant is expected to be operational by the third quarter of 2012. The company is also setting up additional 2,000-Mw power projects by June, 2014. Of the 2,000 Mw, two super critical power projects with the rated capacity of 2 x 660 Mw, equal to 1320 Mw, would come up and would be fed with imported coal.
Another source said the company has firmed up plans to increase its power generation capacity and to complement the plan, has been on the look-out for coal mines. The company has two power plants in Chhattisgarh — in Raigarh and Raipur, each with a combined capacity of 250 Mw. Monnet plans to ramp up the capacity to 500 Mw in two years and would need more coal to run the plant. The official said, “Currently, our coal mine in Chhatisgarh is producing 1 million tonne of coal and there is a plan to increase it up to 1.5 million tonne. Our total coal requirement for the Chhattisgarh power plants is currently 2.5-3 million tonne and the shortfall is met from the open market.” He said after the capacity is increased to 500 Mw, the company would need 5 million tonne of coal per year. (By Business Standard)
An official close to the deal told Business Standard, “The company has been in serious talks for the past 5 months to buy a 100-million tonne thermal coal mine in Indonesia. The acquisition is now complete and the announcement will happen on Monday.”
The official said the company has been looking at 4-5 coal mines in Indonesia and zeroed on this particular mine after careful inspection and due diligence. Company sources did not comment for the story.
Monnet Group's power projects fall under its subsidiary, Monnet Power Company. The subsidiary is currently setting up a 1050-Mw power plant in Angul, and has captive coal mines to feed the plant. The plant is expected to be operational by the third quarter of 2012. The company is also setting up additional 2,000-Mw power projects by June, 2014. Of the 2,000 Mw, two super critical power projects with the rated capacity of 2 x 660 Mw, equal to 1320 Mw, would come up and would be fed with imported coal.
Another source said the company has firmed up plans to increase its power generation capacity and to complement the plan, has been on the look-out for coal mines. The company has two power plants in Chhattisgarh — in Raigarh and Raipur, each with a combined capacity of 250 Mw. Monnet plans to ramp up the capacity to 500 Mw in two years and would need more coal to run the plant. The official said, “Currently, our coal mine in Chhatisgarh is producing 1 million tonne of coal and there is a plan to increase it up to 1.5 million tonne. Our total coal requirement for the Chhattisgarh power plants is currently 2.5-3 million tonne and the shortfall is met from the open market.” He said after the capacity is increased to 500 Mw, the company would need 5 million tonne of coal per year. (By Business Standard)
Wednesday, January 26, 2011
Sponge iron prices rise 20% in a month
January 26, 2011
sourced Business standard by Dilip Kumar Jha & Shubhashish
The prices of sponge iron rose by nearly 20 per cent in the past month in line with similar rises in the prices of other steel making raw material, including iron ore and scrap.
On Friday, sponge iron prices in Raipur, Chhattisgarh, India’s largest producing hub, is quoted at Rs 21,000 a tonne, from Rs 16,500 a tonne about a month earlier. The commodity slipped marginally from its peak at Rs 22,000 a tonne yesterday. Producers and traders attribute this price rise to an all-round appreciation in finished steel products and raw materials.
Post-monsoon construction activity began with a lag of a month due to an extended rainy season. So, projects in this sector are behind schedule, creating a rush for completion. As a result, demand for construction-grade steel has suddenly surged. Vipul Agarwal, director (finance), Prakash Industries, said, “Sponge iron prices have spiked by over 20 per cent in the past month or so and looks likely to continue to move upwards.”
The cost of production of sponge iron for Prakash Industries is around Rs 12,000 a tonne due to captive iron ore mines.
The company sells it at a profit margin of a massive 75 per cent, at Rs 21,000 a tonne. Agarwal said, “We have our own coal mines. That is why our cost of production is lower than other sponge iron makers.”
On the other hand, a number of small sponge iron producers in Chhattisgarh have shut shop due to inability to procure raw materials like steel scrap and iron ore at such a high price. Imported steel scrap is quoted today at Mumbai port at $450-480 a tonne, a significant rise from $360-400 a tonne about a month earlier.
Similarly, the benchmark iron ore (with 63.5 per cent of Fe content) perked to $190 a tonne from $155-160 a tonne a month before.
“Though the flood in Australia did not impact supply of iron ore or coking coal, it created a sentimental boost to the entire steel sector,” said Vimal Kumar Somani, director of Topworth Group, a Mumbai-based sponge iron manufacturer which runs its plant in Raipur.
Prices of finished steel have also surged in line with hot-rolled coil, up to $760 a tonne today from $580 a tonne a month before. Shredded scrap is currently quoted at $500 per tonne, a significant rise from $440-450 a tonne, while heavy melting scrap (HMS) is sold at $450-480 a tonne today, as compared to $360-400 a tonne a month earlier.
Internal demand for steel is also bullish, especially from the automobile, construction and consumer durables’ sector, said Somani. Mega projects like power and national highways require a lot of steel. Therefore, prices of steel and its raw materials are likely to remain firm for at least the next two months, he added.
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