African Energy Resources uncovers 15000 tonne of coal for export trials

Thursday, 23 Feb 2012

Australian junior miner, African Energy Resources has mined and prepared 15,000 tonnes of coal at its Sese project near Francistown as a sample to test target export markets as the project nears commercial development.In a presentation made available, Mr Frazer Tabeart MD of AFR said the sample would also be used for bulk washing trials and to test key components such as the boiler.

However, it is the export trials that have sparked investor interest, being potentially the first time coal from Botswana will leave the continent and be tested in world markets, a development eagerly awaited by government and other coal sector investors.Perhaps more importantly, the export trial could potentially illuminate an export route for other coal sector players for whom the absence of a route from mine to port has paralyzed project development.

While AFR has not specifically said the coal sample will reach export markets via rail and port, the company's development plans include one million tonnes per annum through Zimbabwe and Mozambique to markets in India.According to its development plan, AFR plans to export up to one million tonnes per annum next year while producing another 600,000 tonnes for the domestic market from its thermal coal resources estimated at over 2.5 billion tonnes.

By 2014, the Australian miner expects Sese to be producing 4 million tonnes per annum, with up to 2 million tonnes targeted for export while the balance will be for a local power project and the local market. According to the plans, by 2017, with new rail infrastructure in place, Sese targets the production of 12.4 million tonne per annum with exports of 9.3 million tonnes, a figure that is expected to rise to 14 million tonne per annum by 2020.

Mr Tabeart at a conference last July said that "The challenge is infrastructure and we are taking a keen interest in this. We do not expect that a major railway line will be in place by 2017 and that’s something we have planned into our approach. We are starting with 1 million tonnes per annum and perhaps by 2014/15 we could partner with a local independent power producer and ramp up to five million tonne per annum. A much larger export operation is possible of even up to 30 million tonne per annum if the infrastructure for exports is put in place."

(sourced www.mmegi.bw)

Orissa allows 6 iron ore mines to resume operations

Tuesday, 25 Jan 2011

India's top iron ore producing state Orissa said that it has allowed six mines to restart, three days after they were ordered to shut down in a crackdown on illegal mining.
The six were among 23 mines closed down on Friday pending submission of paperwork, adding to a total of more than 300 mines in Orissa shuttered since July 2009 as India tightens mining regulations.
Mr UC Jena Orissa's deputy director for mines told Reuters that production lost at the six mines was about 174,000 tonnes since Friday. All of the 23 mines have lost about 450,000 tonnes in output since being shut down on Friday, he added, amounting to a fraction of Orissa's annual output of about 75 million tonnes.
The shutdown last week was a procedural step and not related to a ban on iron ore exports the state wants to propose to boost local supplies.
Orissa is the third largest exporter of the steelmaking raw material in the country, the world's No. 3 supplier. India sells about half of its annual output of more than 200 million tonnes to top iron ore importer and steel producer China.
Tight supply of iron ore from India, largely due to a ban on exports from its Karnataka since July, had helped push spot prices to near record highs.
Mr Jena said that "I hope some more operators will submit their valid documents. If they submit we will issue permissions adding that the documents being sought include forest clearances and mining leases.”
(Sourced from Reuters)

Indian iron ore exports in December down by 25pct

Tuesday, 25 Jan 2011
Iron ore exports in December have gone down by 24.64% to 9.69 million tonnes, continuing its declining trend for the sixth consecutive month.
According to the data compiled by the Federation of Indian Mineral Industries, the country had shipped 12.86 million tonne of iron ore, a vital steel making raw material, during the same period last year.
Mr RK Sharma FIMI secretary general told PTI that “The industry has been suffering from quite some time now due to the ban imposed by Karnataka in July. We hope that the issue will get resolved by next month, when the Supreme Court hears the matter.”
He added that “industry is expecting that the Karnataka Government will put in place a mechanism to check illegal mining by mid-February, as per the apex court directions.”
Last week, the Supreme Court asked the State Government to either notify the new law against illegal mining within two weeks or lift its order banning transportation of iron ore meant for export, saying that the ban cannot be sustained indefinitely.
Earlier, the Karnataka government had banned issue of permits to transport iron ore and other minerals for export purposes for six months pending a legislation to curb illegal mining. The period will end this month.
He added that “In this situation, the country would have immensely benefited had the ban not been imposed by Karnataka government.”
(Sourced from PTI)