Sunday, 04 Mar 2012
IANS reported that billionaire mine owner Mr Gali Janardhana Reddy was Friday sent to the custody of Central Bureau of Investigation till March 12 in connection with an illegal mining case.
Bangalore's additional civil and sessions court judge Mr BM Angadi accepted the CBI plea for custody of Reddy for interrogation regarding illegal iron ore mining in Karnataka.
Mr Reddy was produced in Angadi's court by the CBI, which brought him to Bangalore early Friday from Chanchalaguda jail in Hyderabad, about 600 km from here.
Mr Reddy has been lodged in the Hyderabad jail since September 5 in
Source - IANS India
Showing posts with label Indian iron ore industry news. Show all posts
Showing posts with label Indian iron ore industry news. Show all posts
Sunday, March 4, 2012
Thursday, November 17, 2011
Iron ore wagons movement stays suspended in Odisha Joda to Barbil area
Thursday, 17 Nov 2011
The movement of wagons, both empties and loaded, has remained suspended in iron ore rich Joda-Barbil area in Odisha since Monday following agitation by truck owners.
They are protesting against the Odisha government’s decision clamping restriction on the movement of goods vehicles carrying exports and instead favouring larger rail movement.
The Government decision should impact only the movement of iron ore for exports but the agitators have stalled all freight movement by rail, it is learnt. As a result, the loading and movement of iron ore for TATA Steel at Joda and Steel Authority of India Ltd at Bolani believed to have been hit.
TATA Steel loads about four rakes a day and SAIL about three rakes in the area.
The Odisha Government’s objective appears to be pious. The sharp rise in the number of vehicles in the Joda-Barbil area, particularly clogging the National Highway 215, has thrown up a plethora of problems.
Since 2006-09, according to one estimate, the number of six wheelers operating in the area has increased 100% and 10 wheelers more than 70%, many times more than the permissible limits.
The roads are getting damaged, the environment polluted and, more important, others, ie other than those involved in transporting iron ore from that area, are unable to use the road. There is no way even a medical unit can move in an emergency.
Capping it all, the road transportation of ore means that a much costlier fuel is being burnt to carry a much cheaper mineral.
On the other hand, one additional rake loading of ore, it is estimated, will reduce traffic snarl by at least one kilometre, if not more.
Interestingly, the Odisha Government’s decision favoring larger rail movement of ore for exports has brought little cheer to two zonal railways, namely, South Eastern Railway and East Coast Railway, active in the area.
(Sourced from BL)
The movement of wagons, both empties and loaded, has remained suspended in iron ore rich Joda-Barbil area in Odisha since Monday following agitation by truck owners.
They are protesting against the Odisha government’s decision clamping restriction on the movement of goods vehicles carrying exports and instead favouring larger rail movement.
The Government decision should impact only the movement of iron ore for exports but the agitators have stalled all freight movement by rail, it is learnt. As a result, the loading and movement of iron ore for TATA Steel at Joda and Steel Authority of India Ltd at Bolani believed to have been hit.
TATA Steel loads about four rakes a day and SAIL about three rakes in the area.
The Odisha Government’s objective appears to be pious. The sharp rise in the number of vehicles in the Joda-Barbil area, particularly clogging the National Highway 215, has thrown up a plethora of problems.
Since 2006-09, according to one estimate, the number of six wheelers operating in the area has increased 100% and 10 wheelers more than 70%, many times more than the permissible limits.
The roads are getting damaged, the environment polluted and, more important, others, ie other than those involved in transporting iron ore from that area, are unable to use the road. There is no way even a medical unit can move in an emergency.
Capping it all, the road transportation of ore means that a much costlier fuel is being burnt to carry a much cheaper mineral.
On the other hand, one additional rake loading of ore, it is estimated, will reduce traffic snarl by at least one kilometre, if not more.
Interestingly, the Odisha Government’s decision favoring larger rail movement of ore for exports has brought little cheer to two zonal railways, namely, South Eastern Railway and East Coast Railway, active in the area.
(Sourced from BL)
Wednesday, November 16, 2011
FIMI urges Indian government not to impose iron ore export ban
Wednesday, 16 November 2011
The Federation of Indian Mineral Industries (FIMI) has urged Indian government not to impose a blanket ban on iron ore exports, as it would "affect India's steel industry and result in the closure of captive mines."
FIMI secretary R K Bansal has said that the domestic steel industry has much more iron ore supply than the required volume. A blanket on iron ore export will cause most non-captive mine to close. It is stated that due to mining halt, exploration will also stop preventing further additions to reserves and resources.
FIMI also suggested that steel plants should not be allowed to have captive mines since the domestic iron ore production is already more than the domestic demand and will continue to be so for the next few years.
Tags: iron ore , India , raw mat , South Asia , Indian Subcon , mining , quotas & duties
Sourced:steelorbis
The Federation of Indian Mineral Industries (FIMI) has urged Indian government not to impose a blanket ban on iron ore exports, as it would "affect India's steel industry and result in the closure of captive mines."
FIMI secretary R K Bansal has said that the domestic steel industry has much more iron ore supply than the required volume. A blanket on iron ore export will cause most non-captive mine to close. It is stated that due to mining halt, exploration will also stop preventing further additions to reserves and resources.
FIMI also suggested that steel plants should not be allowed to have captive mines since the domestic iron ore production is already more than the domestic demand and will continue to be so for the next few years.
Tags: iron ore , India , raw mat , South Asia , Indian Subcon , mining , quotas & duties
Sourced:steelorbis
Friday, November 4, 2011
BJP seeks CBI probe into Goa exports
Friday, 04 Nov 2011
BL reported that Bharatiya Janata Party president Mr Nitin Gadkari on Thursday led a delegation of the party's Goa unit leaders to President Ms Pratibha Patil and sought a Central Bureau of Investigation probe into the alleged illegal mining of iron ore in Goa, which accounts for 60% of the country's iron ore exports
Mr. Gadkari said the scam causing a loss of INR 25,000 crore to the exchequer took place over the last five years.
The delegation asked the President to direct the Centre to take stringent action against the wrongdoers so as to rid the State of the mining mafia and safeguard the interests of thousands earning their income on legal mining activities.
They charged “The Congress regime and the Pradesh Congress Committee are involved in the scam.”
The BJP charged that the ruling Congress government was trying to cover up the scam.
(Sourced from BL)
BL reported that Bharatiya Janata Party president Mr Nitin Gadkari on Thursday led a delegation of the party's Goa unit leaders to President Ms Pratibha Patil and sought a Central Bureau of Investigation probe into the alleged illegal mining of iron ore in Goa, which accounts for 60% of the country's iron ore exports
Mr. Gadkari said the scam causing a loss of INR 25,000 crore to the exchequer took place over the last five years.
The delegation asked the President to direct the Centre to take stringent action against the wrongdoers so as to rid the State of the mining mafia and safeguard the interests of thousands earning their income on legal mining activities.
They charged “The Congress regime and the Pradesh Congress Committee are involved in the scam.”
The BJP charged that the ruling Congress government was trying to cover up the scam.
(Sourced from BL)
Friday, September 30, 2011
Indian iron ore market getting active - FEARNLEYS AS
Friday, 30 September 11
Handy
The Atlantic market continued its strong trend with fresh cargoes entering the market. Vessels open US Gulf fixed tick above US$ 27k back to the Continent and tonnage from Black Sea. Fixed to the east fetching around US$ 24/25k per day. Baltic to Brazil fixed around US$ 8k. The Pacific market remains firm but cooling off a bit by end of the week. For Indo India and Thai rounds, large eco Supra can fetch close to US$ 17k. Indian iron ore market getting active with fresh enquiries from WCI and Supras fixing around US$ 13k for WCI-China and 12k for ECI-China. RBCT-India round rates are around US$ 12k. Red Sea fertilizers to India are fixed around mid 20s. Short period rates are around 14k for large Supras but seeing less takers.
Panamax
The Panamax market started this week on a quiet note with only USG-front haul giving some fuel to the levels. In the Atlantic the market is firming up, tighter with tonnage and some fresh minerals and grains requirements entering the market. TA rounds are now fetching around US$ 14,500 while some claim to have seen US$ 16k for the shorter Baltic rounds. The front hauls closer to mid 20´s with additional premium for shorter trips via Aden. In the Pacific activity is slowing down in all areas. Some analysts warn that China´s emergency coal reserve provision is too small, and they might pick up the pase they had earlier on Indonesian coal. Mid week the Pac rounds are being fixed at around US$ 11k while the backhauls are getting around US$ 4,500. The period market has shown some activity with a few short period fixtures in the mid 12k range. With the coming holidays in China activity and levels could suffer next week.
Cape size
A psychological barrier seems to kick in every time spot levels for this segment climb close to US$ 30k. A robust strengthening on high volume is turning into a soft slide as activity cools down and nervousness spread. Despite last few days´ developments, average daily earnings are still up 12% w-o-w at US$ 28k, and fundamental parameters still appear robust for transatlantic and pacific trades. Period activity has been fair on the back of paper support - most recently exemplified by 2 x 206kdwt Newcastle max NBs delivering Feb + April 2012 for about 4 years to major energy producers at US$ 18k, 175kdwt/built 2010 delivering Japan early Oct done for 4-6 months at US$ 19k and also 176kdwt/built 2010 delivering N. China early Oct for 4-6 months at US$ 18k.
source: FEARNBULK, Coalspot
If you believe an article violates your rights or the rights of others, please contact us.
Handy
The Atlantic market continued its strong trend with fresh cargoes entering the market. Vessels open US Gulf fixed tick above US$ 27k back to the Continent and tonnage from Black Sea. Fixed to the east fetching around US$ 24/25k per day. Baltic to Brazil fixed around US$ 8k. The Pacific market remains firm but cooling off a bit by end of the week. For Indo India and Thai rounds, large eco Supra can fetch close to US$ 17k. Indian iron ore market getting active with fresh enquiries from WCI and Supras fixing around US$ 13k for WCI-China and 12k for ECI-China. RBCT-India round rates are around US$ 12k. Red Sea fertilizers to India are fixed around mid 20s. Short period rates are around 14k for large Supras but seeing less takers.
Panamax
The Panamax market started this week on a quiet note with only USG-front haul giving some fuel to the levels. In the Atlantic the market is firming up, tighter with tonnage and some fresh minerals and grains requirements entering the market. TA rounds are now fetching around US$ 14,500 while some claim to have seen US$ 16k for the shorter Baltic rounds. The front hauls closer to mid 20´s with additional premium for shorter trips via Aden. In the Pacific activity is slowing down in all areas. Some analysts warn that China´s emergency coal reserve provision is too small, and they might pick up the pase they had earlier on Indonesian coal. Mid week the Pac rounds are being fixed at around US$ 11k while the backhauls are getting around US$ 4,500. The period market has shown some activity with a few short period fixtures in the mid 12k range. With the coming holidays in China activity and levels could suffer next week.
Cape size
A psychological barrier seems to kick in every time spot levels for this segment climb close to US$ 30k. A robust strengthening on high volume is turning into a soft slide as activity cools down and nervousness spread. Despite last few days´ developments, average daily earnings are still up 12% w-o-w at US$ 28k, and fundamental parameters still appear robust for transatlantic and pacific trades. Period activity has been fair on the back of paper support - most recently exemplified by 2 x 206kdwt Newcastle max NBs delivering Feb + April 2012 for about 4 years to major energy producers at US$ 18k, 175kdwt/built 2010 delivering Japan early Oct done for 4-6 months at US$ 19k and also 176kdwt/built 2010 delivering N. China early Oct for 4-6 months at US$ 18k.
source: FEARNBULK, Coalspot
If you believe an article violates your rights or the rights of others, please contact us.
Monday, August 29, 2011
May hike export duties on iron ore exports: Steel minister
Mon,Aug29, 2011 | Source PTI
Government today said it may further increase duties on iron ore to discourage its export in order to keep it for meeting domestic demands.
"We have increased export duty from five per cent to 20%. We may increase it further," Steel Minister Beni Prasad Verma told the Lok Sabha during Question Hour.
Verma said government was discouraging export of iron ore and trying to keep it for domestic consumption.
Nearly 50% of the iron ore produced in the country has been exported over the last three years, he said.
In 2008-09 212.96 million tonnes (MT) of iron ore was produced of which 105.86 MT (49.7%) was exported and in 2009-10 218.64 MT ore was produced and 117.37 MT (53.7%) was exported, Verma said.
He said in 2010-11 the estimated production was 208.11 MT of which 97.66 MT (46.9%) was marked for export.
"The production of iron ore in the country is about to double the consumption of iron ore by the domestic iron and steel industry and therefore is sufficient to meet the present requirement of iron ore by the steel sector in the country,"
he said.
As regards iron ore supply to PSUs, Steel Authority of India Limited (SAIL) has is own captive mines which cater to its full requirement of iron ore, he said.
Verma said the requirement of iron ore of other PSUs - Rashtriya Ispat Nigam Limited and KIOCL Ltd - is fulfilled by National Mineral Development Corporation.
Government today said it may further increase duties on iron ore to discourage its export in order to keep it for meeting domestic demands.
"We have increased export duty from five per cent to 20%. We may increase it further," Steel Minister Beni Prasad Verma told the Lok Sabha during Question Hour.
Verma said government was discouraging export of iron ore and trying to keep it for domestic consumption.
Nearly 50% of the iron ore produced in the country has been exported over the last three years, he said.
In 2008-09 212.96 million tonnes (MT) of iron ore was produced of which 105.86 MT (49.7%) was exported and in 2009-10 218.64 MT ore was produced and 117.37 MT (53.7%) was exported, Verma said.
He said in 2010-11 the estimated production was 208.11 MT of which 97.66 MT (46.9%) was marked for export.
"The production of iron ore in the country is about to double the consumption of iron ore by the domestic iron and steel industry and therefore is sufficient to meet the present requirement of iron ore by the steel sector in the country,"
he said.
As regards iron ore supply to PSUs, Steel Authority of India Limited (SAIL) has is own captive mines which cater to its full requirement of iron ore, he said.
Verma said the requirement of iron ore of other PSUs - Rashtriya Ispat Nigam Limited and KIOCL Ltd - is fulfilled by National Mineral Development Corporation.
Thursday, August 18, 2011
India may influence iron ore pricing strategy - Report
Thursday, 18 Aug 2011 | By BS
BS reported that India, a major supplier of steel making raw material iron ore to China, will have a major bearing on the Beijing strategy to loosen what is perceived to be the monopolistic pricing power of the Brazilian Vale and Anglo Australian BHP Billiton and Rio Tinto.
But, last budget raising the export duty on iron ore fines to 20% and bringing it on par with lumps and intermittent shipment dislocations from Karnataka could not be to Chinese liking. This is because China is trying to frame a 5 to 10 year strategy of reducing its uncomfortably large ore dependence on the big three mining groups.
In fact, their tight grip over the Chinese market has allowed them to usurp price setting power. Recent Indian moves discouraging exports, suspected at the prompting of local steel mills runs counter to the now evolving Chinese strategy of having a more diversified supply source than now.
As revealed so far, the strategy will be resting on two strands. First, attempts will be made to rapidly step up imports from Chinese owned offshore mines, particularly in Africa. Second, China will develop and strengthen imports sources beyond Australia and Brazil. That Vale, BHP and Rio have over 60% share of Chinese ore imports is in itself a measure of Beijing's uneasiness with the current state of affairs.
China will be counting less and less on Indian supplies of ore fines, which at one point were around 100 million tonnes a year, in its moves to break the grip of the world’s three major miners.
China should also be taking into account the ambition of iron ore, endowed Indonesia and Vietnam to emerge as steel producers of some size.
As all such things happen, China’s search for supply alternatives to Vale, BHP and Rio will automatically shrink.
Even then, China will bring into play economic diplomacy to seek full or part ownership of mines or equity investment linked to assured off take of mine production in south east Asian countries. While the country will ever remain on the lookout for iron ore resource acquisition opportunities across geographies, the focus will remain on West Africa.
MEPS consultancy has forecast an 8.5% rise in Chinese ore demand to 1.07 billion tonnes in 2011, when crude steel production will climb to 728 million tonnes. In the first half of 2011, the country’s ore imports rose 8% to 334 million tonnes, with buying cost rising a hefty 54% to USD 53.78 billion. China’s ore self reliance pursuit has not, however, dissuaded mineral majors from opening new mines. New investments find justification in forecasts that prices of ore with iron content of 62% will stay above USD 150 a tonne till at least 2015. Such prices are obviously assumed on the basis that Chinese import demand is not to be dimmed too soon.
BS reported that India, a major supplier of steel making raw material iron ore to China, will have a major bearing on the Beijing strategy to loosen what is perceived to be the monopolistic pricing power of the Brazilian Vale and Anglo Australian BHP Billiton and Rio Tinto.
But, last budget raising the export duty on iron ore fines to 20% and bringing it on par with lumps and intermittent shipment dislocations from Karnataka could not be to Chinese liking. This is because China is trying to frame a 5 to 10 year strategy of reducing its uncomfortably large ore dependence on the big three mining groups.
In fact, their tight grip over the Chinese market has allowed them to usurp price setting power. Recent Indian moves discouraging exports, suspected at the prompting of local steel mills runs counter to the now evolving Chinese strategy of having a more diversified supply source than now.
As revealed so far, the strategy will be resting on two strands. First, attempts will be made to rapidly step up imports from Chinese owned offshore mines, particularly in Africa. Second, China will develop and strengthen imports sources beyond Australia and Brazil. That Vale, BHP and Rio have over 60% share of Chinese ore imports is in itself a measure of Beijing's uneasiness with the current state of affairs.
China will be counting less and less on Indian supplies of ore fines, which at one point were around 100 million tonnes a year, in its moves to break the grip of the world’s three major miners.
China should also be taking into account the ambition of iron ore, endowed Indonesia and Vietnam to emerge as steel producers of some size.
As all such things happen, China’s search for supply alternatives to Vale, BHP and Rio will automatically shrink.
Even then, China will bring into play economic diplomacy to seek full or part ownership of mines or equity investment linked to assured off take of mine production in south east Asian countries. While the country will ever remain on the lookout for iron ore resource acquisition opportunities across geographies, the focus will remain on West Africa.
MEPS consultancy has forecast an 8.5% rise in Chinese ore demand to 1.07 billion tonnes in 2011, when crude steel production will climb to 728 million tonnes. In the first half of 2011, the country’s ore imports rose 8% to 334 million tonnes, with buying cost rising a hefty 54% to USD 53.78 billion. China’s ore self reliance pursuit has not, however, dissuaded mineral majors from opening new mines. New investments find justification in forecasts that prices of ore with iron content of 62% will stay above USD 150 a tonne till at least 2015. Such prices are obviously assumed on the basis that Chinese import demand is not to be dimmed too soon.
Wednesday, August 17, 2011
Transporters launch indefinite strike in Orissa
Wednesday, 17 Aug 2011
BS reported that more than 6,000 truck owners engaged in transportation of iron ore in mineral rich Keonjhar and Joda areas have launched an indefinite strike from on Tuesday protesting the exporters' demand for reduction of transport charges.
Mr Raja Chakra member of Keonjhar Truck Owners' Association said “The main reason for our protest is the revised price calculating formula set by East Zone Mining Association. The new formula will reduce the transport charges by almost a third to INR 1,800 per tonne.”
The EZMA says transport charges must be lower than prevailing rate of INR 2,500 per tonne to INR 2,600 per tonne for carrying a tonne of iron ore from Keonjhar based mines to Paradip port, which takes about three days.
The truck owners' association said as the vehicles spend almost two weeks in queue because of infrastructure bottlenecks at the port, they must charge higher prices.
The association plans to meet the transport secretary and chief secretary on this matter soon.
(Sourced from BS)
BS reported that more than 6,000 truck owners engaged in transportation of iron ore in mineral rich Keonjhar and Joda areas have launched an indefinite strike from on Tuesday protesting the exporters' demand for reduction of transport charges.
Mr Raja Chakra member of Keonjhar Truck Owners' Association said “The main reason for our protest is the revised price calculating formula set by East Zone Mining Association. The new formula will reduce the transport charges by almost a third to INR 1,800 per tonne.”
The EZMA says transport charges must be lower than prevailing rate of INR 2,500 per tonne to INR 2,600 per tonne for carrying a tonne of iron ore from Keonjhar based mines to Paradip port, which takes about three days.
The truck owners' association said as the vehicles spend almost two weeks in queue because of infrastructure bottlenecks at the port, they must charge higher prices.
The association plans to meet the transport secretary and chief secretary on this matter soon.
(Sourced from BS)
Monday, August 15, 2011
India's iron ore output and exports
Mon Aug 15, 2011
NEW DELHI (Reuters) - India's iron ore exports, which fell for the first time in a decade last year, could halve over the next five years as the country feeds the expansion of its steel industry.
Here are some key facts about the Indian iron ore industry:
PRODUCTION:
- India produced 212.6 million tonnes of iron ore in 2010/11 and exported 97.6 million tonnes.
- There are about 500 mines in the country, half of which are operational. These are held by about 80 companies.
- High-grade ores with 62-65 percent iron are produced mainly in the east and south. Low-grade ores with 50-60 percent iron are produced in the west and south.
- The largest mining firm is state-run NMDC, which produces about 29 million tonnes annually, mostly for local sales.
- The steel industry is a big domestic user of iron ore. Many steel companies have captive mines.
EXPORTS:
- India is the world's third-largest exporter after Australia and Brazil. Goa is India's biggest exporter.
- China is India's biggest buyer, with its proximity helping it secure ores with low freight costs. India sells the bulk of its iron ore via the spot market.
- The largest exporting company is Sesa Goa, a unit of London-listed Vedanta Resources.
- Other large producers and exporters are Essel Mining, Rungta Mines, V.M. Salgaocar, MSPL and Chowgule.
- Miners in Goa have lower costs as mines are located near the port, and so avoid road and rail charges.
CHALLENGES:
- In its 2011/12 budget, the federal government hiked export duties on iron ore to 20 percent from 5 percent for fines and from 15 percent for lumps in a bid to cool domestic prices to help steel firms.
- Shipments from Karnataka, source of a quarter of India's annual exports, have been banned since July 2010 and exports have yet to resume despite a Supreme Court order allowing shipments from April 20.
- Port infrastructure is poor and vessels can wait up to seven days to load cargo.
- Indian prices generally follow the global market, dominated by Australian and Brazilian miners, with China buying on a spot basis for its low-grade ore needs.
- Slower exports could mean a surge in stocks of fines, complicating storage problems at mines. The Karnataka ban led to an estimated 15 million tonnes of unsold stocks of low-grade ore lying in the mines as of late July this year.
FUTURES
- The world's first iron ore futures debuted in India on Jan. 29, but volumes have been muted as participation of foreign players is not allowed.
Sources: Federation of Indian Mineral Industries, industry members and Ministry of Mines.
NEW DELHI (Reuters) - India's iron ore exports, which fell for the first time in a decade last year, could halve over the next five years as the country feeds the expansion of its steel industry.
Here are some key facts about the Indian iron ore industry:
PRODUCTION:
- India produced 212.6 million tonnes of iron ore in 2010/11 and exported 97.6 million tonnes.
- There are about 500 mines in the country, half of which are operational. These are held by about 80 companies.
- High-grade ores with 62-65 percent iron are produced mainly in the east and south. Low-grade ores with 50-60 percent iron are produced in the west and south.
- The largest mining firm is state-run NMDC, which produces about 29 million tonnes annually, mostly for local sales.
- The steel industry is a big domestic user of iron ore. Many steel companies have captive mines.
EXPORTS:
- India is the world's third-largest exporter after Australia and Brazil. Goa is India's biggest exporter.
- China is India's biggest buyer, with its proximity helping it secure ores with low freight costs. India sells the bulk of its iron ore via the spot market.
- The largest exporting company is Sesa Goa, a unit of London-listed Vedanta Resources.
- Other large producers and exporters are Essel Mining, Rungta Mines, V.M. Salgaocar, MSPL and Chowgule.
- Miners in Goa have lower costs as mines are located near the port, and so avoid road and rail charges.
CHALLENGES:
- In its 2011/12 budget, the federal government hiked export duties on iron ore to 20 percent from 5 percent for fines and from 15 percent for lumps in a bid to cool domestic prices to help steel firms.
- Shipments from Karnataka, source of a quarter of India's annual exports, have been banned since July 2010 and exports have yet to resume despite a Supreme Court order allowing shipments from April 20.
- Port infrastructure is poor and vessels can wait up to seven days to load cargo.
- Indian prices generally follow the global market, dominated by Australian and Brazilian miners, with China buying on a spot basis for its low-grade ore needs.
- Slower exports could mean a surge in stocks of fines, complicating storage problems at mines. The Karnataka ban led to an estimated 15 million tonnes of unsold stocks of low-grade ore lying in the mines as of late July this year.
FUTURES
- The world's first iron ore futures debuted in India on Jan. 29, but volumes have been muted as participation of foreign players is not allowed.
Sources: Federation of Indian Mineral Industries, industry members and Ministry of Mines.
Wednesday, August 10, 2011
Mining scam may hit steel investments
Wednesday, 10 Aug 2011
It is reported that dirty politicking in Karnataka has exposed the underbelly of the mining industry and also brought the iron ore industry to a standstill. The snowballing crisis could dampen Karnataka's investor friendly image and particularly affect investments in steel.
Steel companies had accounted for the major chunk of the INR 50,000 crore investments attracted by the state during the Global Investors' Meet in 2010.
Mr Basant Poddar VP of Federation of Indian Minerals Industries said that "Many companies are already rethinking on their decision to invest in Karnataka. Land acquisition and power are also posing big challenges."
Mr GVSB Reddy COO at mining consultancy Vajra Natural Resources said that even if the projects are not withdrawn, they are likely to be put on hold. With the ban on mining, they have good reason to seek extension for their projects.
India produces 65 million tonnes of crude steel, of which Karnataka accounts for 16 million tonnes.
The Bangalore Chamber of Industry and Commerce estimates that the suspension on iron ore mining in Karnataka would impact the national GDP as the sector has a 6.2% weightage in the Index of Industrial Production. With steel production down by 25% in Karnataka on account of the mining ban, BCIC says the GDP would be negatively impacted by 0.5% or USD 8.5 billion.
Iron and steel shortage would lead to a cascading effect on the price of automobiles, consumer durables, construction and infrastructure. India imported 7 million tonnes of steel in 2010 and in the current scenario; it could lead to an additional import of 16 million tonnes.
A BCIC official said that "This will cause additional foreign exchange drain of USD 12 billion per year which is 3.9% of the country's current forex reserve. There will also be a loss of INR 10,000 crore annually to the state exchequer."
The ban on mining and exports has caused uncertainty for the around 100,000 directly employed people in these businesses.
(sourced TOI)
It is reported that dirty politicking in Karnataka has exposed the underbelly of the mining industry and also brought the iron ore industry to a standstill. The snowballing crisis could dampen Karnataka's investor friendly image and particularly affect investments in steel.
Steel companies had accounted for the major chunk of the INR 50,000 crore investments attracted by the state during the Global Investors' Meet in 2010.
Mr Basant Poddar VP of Federation of Indian Minerals Industries said that "Many companies are already rethinking on their decision to invest in Karnataka. Land acquisition and power are also posing big challenges."
Mr GVSB Reddy COO at mining consultancy Vajra Natural Resources said that even if the projects are not withdrawn, they are likely to be put on hold. With the ban on mining, they have good reason to seek extension for their projects.
India produces 65 million tonnes of crude steel, of which Karnataka accounts for 16 million tonnes.
The Bangalore Chamber of Industry and Commerce estimates that the suspension on iron ore mining in Karnataka would impact the national GDP as the sector has a 6.2% weightage in the Index of Industrial Production. With steel production down by 25% in Karnataka on account of the mining ban, BCIC says the GDP would be negatively impacted by 0.5% or USD 8.5 billion.
Iron and steel shortage would lead to a cascading effect on the price of automobiles, consumer durables, construction and infrastructure. India imported 7 million tonnes of steel in 2010 and in the current scenario; it could lead to an additional import of 16 million tonnes.
A BCIC official said that "This will cause additional foreign exchange drain of USD 12 billion per year which is 3.9% of the country's current forex reserve. There will also be a loss of INR 10,000 crore annually to the state exchequer."
The ban on mining and exports has caused uncertainty for the around 100,000 directly employed people in these businesses.
(sourced TOI)
Friday, February 25, 2011
India for more iron ore export curbs, duty rise seen
25 Feb, 2011, 06.34PM IST,REUTERS
NEW DELHI/MUMBAI: India's steel minister called for curbs on exports of iron ore on Friday, as the federal government heads into a budget that could raise export duty on the steel-making ingredient marginally.
"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.
India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.
In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.
The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.
"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.
Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.
Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.
Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)
Tags : ban of iron ore shipment from Karnataka, raw material, steel mills
"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.
India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.
In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.
The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.
"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.
Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.
Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.
Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)
Tags : ban of iron ore shipment from Karnataka, raw material, steel mills
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