Mar 28, 2011 11:32pm GMT
MELBOURNE, March 29 (Reuters) - Global miner Rio Tinto is negotiating with one of two major shareholders in Riversdale Mining to secure a majority stake in the Africa-focused miner.
Rio Tinto has launched a A$3.9 billion ($4 billion) takeover bid for Riversdale, conditional on at least 50 percent acceptances, but has so far secured only about 41 percent.
Rio Tinto's lawyer said in a letter released to the Australian stock exchange on Tuesday that Rio "genuinely believes that an outcome of those discussions is likely to emerge during the course of this morning". The letter was released by Riversdale.
$1 = 0.976 Australian Dollars)
Showing posts with label Mon Mar28 2011. Show all posts
Showing posts with label Mon Mar28 2011. Show all posts
Tuesday, March 29, 2011
Rio Tinto fails to reach majority stake in Riversdale
Mon Mar 28, 2011 11:04pm GMT
MELBOURNE, March 29 (Reuters) - Global miner Rio Tinto failed to win a majority stake in Riversdale Mining with its A$3.9 billion ($4 billion) sweetened offer, it said on Tuesday.
Rio Tinto reached 41.04 percent by its late Monday deadline.
The offer was due to revert to A$16 a share from A$16.50, remaining open until April 6, if Rio did not reach 50 percent by 0800 GMT on Monday. ($1 = 0.976 Australian Dollars, reuters)
MELBOURNE, March 29 (Reuters) - Global miner Rio Tinto failed to win a majority stake in Riversdale Mining with its A$3.9 billion ($4 billion) sweetened offer, it said on Tuesday.
Rio Tinto reached 41.04 percent by its late Monday deadline.
The offer was due to revert to A$16 a share from A$16.50, remaining open until April 6, if Rio did not reach 50 percent by 0800 GMT on Monday. ($1 = 0.976 Australian Dollars, reuters)
Monday, March 28, 2011
JFE bullish on shipment outlook on strong Asia demand
Mon Mar 28, 2011 1:08pm GMT
* No plans to change H1 shipments forecast - JFE
* Expects H1 sales to top H2 sales of current fiscal year
* Carmakers' output halts could spur Japan steel exports
* METI skips April-June steel demand outlook after quake
(Recasts with JFE comment) TOKYO, March 28 - JFE Steel Corp (5411.T: Quote), the world's No.5 steelmaker, has no plan to change its strong sales outlook after April as robust demand in Asia will likely offset production loss at its domestic customers after the March 11 earthquake.
Japan's biggest ever earthquake, which has left more than 27,000 dead or missing, has caused production halts at a wide range of steel-user companies, including their biggest client Toyota Motor Corp (7203.T: Quote), raising concerns that steelmakers' shipments and earnings will take a hit.
"We still expect our April-September sales will likely exceed sales in the October-March period as Asia's demand remains strong, enough to offset the impact of the disaster," Hiroshi Maki, manager at JFE's sales, planning and coordination division, said on Monday.
JFE has yet to reveal its first-half output plans.
Its October-March production plans call for a 6.4 percent growth in steel shipments at 13.36 million tonnes over a year earlier, counting on higher exports to markets like South Korea, China and Taiwan.
Nippon Steel (5401.T: Quote), JFE and Sumitomo Metal Industries have resumed operations of all seven blast furnaces idled after the quake to cope with rising construction demand and also to increase power supply to the region's struggling electric power companies.
But confusion in distribution channels and shutdowns at carmakers could lead to higher inventories at steelmakers, prompting Nippon Steel and JFE to turn to export markets to make up for sluggish domestic demand.
Lost car production in Japan in the two weeks since the quake has topped a third of a million vehicles, and it could be months, rather than weeks, before the country's automakers get back on track.
Prolonged production delays at domestic steel-users would also make it hard for steelmakers to pass on higher input costs.
"What worries me most is user-companies' output plans," said Takashi Murata, an analyst at Daiwa Securities Capital Markets.
"It will be really tough for steelmakers to pass on higher input costs if their production lines are suspended."
Nippon Steel last month said it was seeking a roughly 25 percent price hike from domestic contract manufacturers after April to cover surging input costs.
Japan's trade ministry said on Monday it would not make its regular estimate on crude steel output for the April-June quarter due to production halts at firms such as carmakers.
An official from the Ministry of Economy, Trade and Industry said it had yet to finish surveying the impact of the quake, but added it may release a quarterly steel production forecast on May 9 as planned.
* No plans to change H1 shipments forecast - JFE
* Expects H1 sales to top H2 sales of current fiscal year
* Carmakers' output halts could spur Japan steel exports
* METI skips April-June steel demand outlook after quake
(Recasts with JFE comment) TOKYO, March 28 - JFE Steel Corp (5411.T: Quote), the world's No.5 steelmaker, has no plan to change its strong sales outlook after April as robust demand in Asia will likely offset production loss at its domestic customers after the March 11 earthquake.
Japan's biggest ever earthquake, which has left more than 27,000 dead or missing, has caused production halts at a wide range of steel-user companies, including their biggest client Toyota Motor Corp (7203.T: Quote), raising concerns that steelmakers' shipments and earnings will take a hit.
"We still expect our April-September sales will likely exceed sales in the October-March period as Asia's demand remains strong, enough to offset the impact of the disaster," Hiroshi Maki, manager at JFE's sales, planning and coordination division, said on Monday.
JFE has yet to reveal its first-half output plans.
Its October-March production plans call for a 6.4 percent growth in steel shipments at 13.36 million tonnes over a year earlier, counting on higher exports to markets like South Korea, China and Taiwan.
Nippon Steel (5401.T: Quote), JFE and Sumitomo Metal Industries have resumed operations of all seven blast furnaces idled after the quake to cope with rising construction demand and also to increase power supply to the region's struggling electric power companies.
But confusion in distribution channels and shutdowns at carmakers could lead to higher inventories at steelmakers, prompting Nippon Steel and JFE to turn to export markets to make up for sluggish domestic demand.
Lost car production in Japan in the two weeks since the quake has topped a third of a million vehicles, and it could be months, rather than weeks, before the country's automakers get back on track.
Prolonged production delays at domestic steel-users would also make it hard for steelmakers to pass on higher input costs.
"What worries me most is user-companies' output plans," said Takashi Murata, an analyst at Daiwa Securities Capital Markets.
"It will be really tough for steelmakers to pass on higher input costs if their production lines are suspended."
Nippon Steel last month said it was seeking a roughly 25 percent price hike from domestic contract manufacturers after April to cover surging input costs.
Japan's trade ministry said on Monday it would not make its regular estimate on crude steel output for the April-June quarter due to production halts at firms such as carmakers.
An official from the Ministry of Economy, Trade and Industry said it had yet to finish surveying the impact of the quake, but added it may release a quarterly steel production forecast on May 9 as planned.
Highly radioactive water leaks from Japanese nuclear plant
Mon Mar 28, 2011 2:20pm GMT
* Battle to control Fukushima plant seen far from over
* Radiation in reactor due to melting fuel rods - Edano
* Plant operator seeks help from French companies - Kyodo
* Greenpeace says detects high radiation outside exclusion zone
By Mayumi Negishi and Chisa Fujioka
TOKYO, March 28 (Reuters) - Highly radioactive water has leaked from a reactor at Japan's crippled nuclear complex, the plant's operator said on Monday, while environmental group Greenpeace said it had detected high levels of radiation outside an exclusion zone.
Reflecting growing unease about efforts to control the six-reactor Fukushima Daiichi complex, plant operator Tokyo Electric Power Co (TEPCO) had appealed to French companies for help, the Kyodo news agency said.
The plant, 240 km (150 miles) north of Tokyo, was damaged in a March 11 earthquake and tsunami that left more than 28,000 people dead or missing across northeastern Japan.
Fires, explosions and radiation leaks have repeatedly forced engineers to suspend efforts to stabilise the plant, including on Sunday when radiation levels spiked to 100,000 times above normal in water inside reactor No. 2.
A partial meltdown of fuel rods inside the reactor vessel was responsible for the high levels, although Chief Cabinet Secretary Yukio Edano said the radiation had mainly been contained in the reactor building.
But TEPCO later said radiation above 1,000 millisieverts per hour had been found in water in underground concrete tunnels that extend beyond the reactor.
That is the same as the level discovered on Sunday. The U.S. Environmental Protection Agency says a single dose of 1,000 millisieverts is enough to cause haemorrhaging.
TEPCO officials said the tunnels did not flow into the sea but the possibility of radioactive water seeping into the ground could not be ruled out.
The nuclear crisis has compounded Japan's agony after the magnitude 9.0 quake and huge tsunami devastated its northeast coast, turning whole towns into apocalyptic landscapes of mud and debris.
About a quarter of a million people are living in shelters and damage could top $300 billion, making it the world's costliest natural disaster.
The suffering may not be over.
Greenpeace said its experts had confirmed radiation levels of up to 10 microsieverts per hour in the village of Iitate, 40 km (25 miles) northwest of the plant. It called for the extension of a 20-km (12-mile) evacuation zone.
"It is clearly not safe for people to remain in Iitate, especially children and pregnant women, when it could mean receiving the maximum allowed annual dose of radiation in only a few days," Greenpeace said in a statement.
More than 70,000 people have been evacuated from an area within 20 km (12 miles) of the plant and another 130,000 people within a zone extending a further 10 km are recommended to stay indoors. They have been encouraged to leave.
Beyond the evacuation zone, traces of radiation have turned up in tap water in Tokyo and as far away as Iceland.
Japanese officials and international experts have generally said the levels away from the plant were not dangerous for people, who anyway face higher radiation doses on a daily basis from natural substances, X-rays or flights.
But Greenpeace urged the government to acknowledge the danger and "stop choosing politics over science".
Nuclear safety agency deputy Hidehiko Nishiyama said the environmental group's measurement was not reliable and hardly any people were still living in that area. A Greenpeace nuclear expert later defended the reliability of their findings.
CALL FOR HELP
At the weekend, the spike in radiation forced a suspension of work at the reactor, with experts warning that Japan faced a long fight to contain the world's most dangerous atomic crisis in 25 years.
"This is far beyond what one nation can handle -- it needs to be bumped up to the U.N. Security Council," said Najmedin Meshkati, of the University of Southern California.
TEPCO, which has conceded it faces a protracted and uncertain operation to contain the crisis, sought outside help from French firms including Electricite de France SA and Areva SA (CEPFi.PA: Quote), a French government minister said.
A spokesman for state-owned nuclear reactor maker Areva said the company was studying the request.
Murray Jennex, a nuclear power plant expert and associate professor at San Diego State University, said "there's not really a plan B" other than to dry out the plant, get power restored and start cooling it down.
"What we're now in is a long slog period with lots of small, unsexy steps that have to be taken to pull the whole thing together," he said by telephone. The good news, he said, was that the reactor cores appeared to be cooling down.
There was good news as well about the radiation levels in the sea just off the plant, which skyrocketed on Sunday to 1,850 times normal. Those had come down sharply, the nuclear safety agency said the next day.
Though experts said radiation in the Pacific would quickly dissipate, the levels at the site are clearly dangerous, and the 450 or so engineers there have won admiration and sympathy around the world for their bravery and sense of duty.
Last week, two workers at Fukushima were injured with radiation burns after water seeped over their shoes, and on Sunday, engineers had to abandon reactor No. 2 after the new reading.
The world's worst nuclear disaster since Chernobyl in 1986 has prompted a reassessment of nuclear power across the world. It had its most direct political impact yet in foreign politics in Germany at the weekend.
Chancellor Angela Merkel's Christian Democrats lost control of Germany's most prosperous state, Baden-Wuerttemberg, as anti-nuclear sentiment benefited her opponents in a regional vote.
Residents of the northeast have been rattled by aftershocks from the strongest earthquake in Japanese history, including a magnitude 6.5 tremor on Monday that triggered a tsunami warning.
"I lived through World War Two, when there was nothing to eat and no clothes to wear. I'll live through this," said Mitsuharu Watanobe, sitting cross-legged on a blanket in an evacuation centre in Fukushima city.
"But the scary thing is the radiation. There is a gap between what the newspapers write and what the government is saying. I want the government to tell the truth more."
The latest death toll was 11,004 people, with 17,339 people missing 17 days after the disaster.
Kumba: S.Africa can more double iron ore output
Mon Mar 28, 2011 1:04pm GMT
JOHANNESBURG (Reuters) - South Africa's iron ore industry has the potential to more than double output in the next 10 years under suitable growth conditions, Kumba Iron Ore said in a report issued on Monday.
The report by Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American, cited conditions such as necessary transport logistics and a viable market for the off-take of iron ore and steel products.
The company also said the country would need a suitable regulatory environment that encourages market participants to make the necessary investments.
"These growth projects are capital intensive and will not be economically viable without market-related iron ore prices (at export parity price levels)," the company said.
Kumba's iron ore production rose 3 percent to 43.3 million tonnes in 2010.
Kumba has been at loggerheads with ArcelorMittal South Africa, a unit of the world's biggest steelmaker, over prices for the steel-making ingredient since February last year.
A long-term deal, under which Kumba sold ore to ArcelorMittal SA at a discount, lapsed after the steelmaker failed to convert its rights over a stake in Kumba's Sishen mine into a new right as required by law.
The government now wants at least 21.4 percent of iron ore output from Kumba's Sishen mine to be sold at cost plus 3 percent to help the domestic steel industry.
But Kumba said in the report that discounted iron ore prices were unlikely to lift the local steel sector.
"Iron ore typically contributes less than 1 percent to the costs of these end products and is largely insignificant in its impact on overall costs of downstream products," Kumba said.
It added: "Even if iron ore is discounted significantly, this has an immaterial impact on the cost of most downstream users."
Pending a resolution of the dispute, Kumba and ArcelorMittal SA reached an interim agreement valid until the end of July this year for ArcelorMittal to source iron ore from Kumba at about half of the market price.
ArcelorMittal SA has said it expects the arbitration to be heard early next year and that it will negotiate with Kumba to extend the interim pricing deal until the dispute is resolved.
The government granted Imperial Crown Trading a prospecting right over the stake in Kumba's mine for which ArcelorMittal previously held a mining right, a decision which Kumba is contesting.
JOHANNESBURG (Reuters) - South Africa's iron ore industry has the potential to more than double output in the next 10 years under suitable growth conditions, Kumba Iron Ore said in a report issued on Monday.
The report by Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American, cited conditions such as necessary transport logistics and a viable market for the off-take of iron ore and steel products.
The company also said the country would need a suitable regulatory environment that encourages market participants to make the necessary investments.
"These growth projects are capital intensive and will not be economically viable without market-related iron ore prices (at export parity price levels)," the company said.
Kumba's iron ore production rose 3 percent to 43.3 million tonnes in 2010.
Kumba has been at loggerheads with ArcelorMittal South Africa, a unit of the world's biggest steelmaker, over prices for the steel-making ingredient since February last year.
A long-term deal, under which Kumba sold ore to ArcelorMittal SA at a discount, lapsed after the steelmaker failed to convert its rights over a stake in Kumba's Sishen mine into a new right as required by law.
The government now wants at least 21.4 percent of iron ore output from Kumba's Sishen mine to be sold at cost plus 3 percent to help the domestic steel industry.
But Kumba said in the report that discounted iron ore prices were unlikely to lift the local steel sector.
"Iron ore typically contributes less than 1 percent to the costs of these end products and is largely insignificant in its impact on overall costs of downstream products," Kumba said.
It added: "Even if iron ore is discounted significantly, this has an immaterial impact on the cost of most downstream users."
Pending a resolution of the dispute, Kumba and ArcelorMittal SA reached an interim agreement valid until the end of July this year for ArcelorMittal to source iron ore from Kumba at about half of the market price.
ArcelorMittal SA has said it expects the arbitration to be heard early next year and that it will negotiate with Kumba to extend the interim pricing deal until the dispute is resolved.
The government granted Imperial Crown Trading a prospecting right over the stake in Kumba's mine for which ArcelorMittal previously held a mining right, a decision which Kumba is contesting.
Power, coal, carbon prices rise on German election
Mon Mar 28, 2011 12:13pm GMT
* 2012 power prices at highest since late 2008
* Carbon, coal gain 2 pct
* Market expects oldest nuclear reactors to stay offline
By Karolin Schaps and Henning Gloystein
LONDON, March 28 (Reuters) - European energy prices jumped on Monday as a key Green Party victory in German state elections underlined concerns that widespread anti-nuclear sentiment may permanently shut Germany's oldest reactors.
German baseload electricity contract for 2012 rose BY1DE-1Y to its highest since before the global financial crisis slashed power prices in late 2008, while the price of coal for delivery into Europe next year ICPAP2YZ2 and for permits to emit climate-warming carbon both rose nearly 2 percent. CFI2Zc1
"The power market is taking the view that certain plants are not coming back. If there is a hard, fast decision (on keeping reactors offline) prices would go in an upwards trend," said Martin Young, Executive Director for Equities Research at investment bank Nomura.
The surge in prices comes after Japan's nuclear disaster prompted Chancellor Angela Merkel to impose a three-month moratorium on her coalition government's decision to extend the lifetime of Germany's nuclear reactors, which helped steer the anti-nuclear Greens to control of Baden-Wuerttemberg at the weekend elections.
Seven nuclear reactors shut down following the moratorium in place until at least June, but German power traders believe the loss in political support for nuclear power in Baden-Wuerttemberg will lead to the permanent shutdown of the two oldest reactors located there -- Philippsburg I and Neckarwestheim I -- and other shutdowns will follow quickly.
"I think this now increases the likelihood that Neckarwestheim I and Philippsburg I do not come back after the moratorium and that the other units are phased out quickly," a London-based energy analyst at an investment bank said.
Environment minister Norbert Roettgen, a close Merkel ally, fuelled the debate on Monday as he called for a quicker shutdown of Germany's nuclear reactors. [ID:nLDE72R0JT]
BULLISH FOR CARBON, POWER
The benchmark contract for EU Allowances CFI2Zc1 rose as high as 17.35 euros a tonne early on Monday, the highest in eight days, while coal prices for year-ahead delivery rose above $130 per tonne, maintaining highs seen last week.
"Getting rid of old nuclear plants means plants will run more coal and gas. That means around 70 million tonnes of extra carbon dioxide will be emitted and carbon is up on this prospect for now. The question is how much is this worth in terms of additional carbon price?" said Emmanuel Fages, analyst at Societe Generale/orbeo.
European Energy Commissioner Guenther Oettinger, who before his position in Brussels was Prime Minister of the state of Baden-Wuerttemberg, also supported the view that coal will act as a substitute to nuclear in Germany.
UTILITIES, RENEWABLES GAIN
Share prices in German utilities rose on the back of high gains in power prices and the prospect that utilities may be able to see higher returns from coal and gas plants to substitute the loss in nuclear capacity. Shares in utility RWE (RWEG.DE: Quote) initially fell on Monday but rebounded later to rise 0.43 percent above Friday's close to 44.88 euro at 1055 GMT on Monday, while shares in E.ON (EONGn.DE: Quote) were down 0.16 percent.
Renewable energy shares in Germany continued their strong gains and the OekoDAX , one of the country's biggest renewable stocks was up 6.5 percent on Monday, while the S&P Global Clean Energy Index .SPGTCLEE was up 1.9 percent.
Renewable stocks have soared since Japan's March 11 earthquake and tsunami which damaged nuclear power reactors and caused radioactive leaks.
The global backlash against nuclear power has boosted the outlook for renewable energy as governments ponder their nuclear options.
The election outcome in Baden-Wuerttemberg on Sunday is likely to mean an end to the 58 year long rule in the state of chancellor Angela Merkel's conservative CDU party.
This is likely to leave the anti-nuclear Green Party in control of the utility EnBW (EBKG.DE: Quote), which operates four nuclear reactors, two each at Neckarwestheim and Philippsburg.
It would be the first time that the Green Party has headed a state government in Germany.
The CDU's pro-nuclear policies, which included buying a majority stake in EnBW last year, were punished by Baden-Wuerttemberg voters after the nuclear crisis in Japan.
The opposition Greens claimed about around 25 percent of the vote and will likely form a coalition with the Social Democrats, who took around 23 percent of the votes.
German baseload electricity contract for 2012 rose BY1DE-1Y to its highest since before the global financial crisis slashed power prices in late 2008, while the price of coal for delivery into Europe next year ICPAP2YZ2 and for permits to emit climate-warming carbon both rose nearly 2 percent. CFI2Zc1
"The power market is taking the view that certain plants are not coming back. If there is a hard, fast decision (on keeping reactors offline) prices would go in an upwards trend," said Martin Young, Executive Director for Equities Research at investment bank Nomura.
The surge in prices comes after Japan's nuclear disaster prompted Chancellor Angela Merkel to impose a three-month moratorium on her coalition government's decision to extend the lifetime of Germany's nuclear reactors, which helped steer the anti-nuclear Greens to control of Baden-Wuerttemberg at the weekend elections.
Seven nuclear reactors shut down following the moratorium in place until at least June, but German power traders believe the loss in political support for nuclear power in Baden-Wuerttemberg will lead to the permanent shutdown of the two oldest reactors located there -- Philippsburg I and Neckarwestheim I -- and other shutdowns will follow quickly.
"I think this now increases the likelihood that Neckarwestheim I and Philippsburg I do not come back after the moratorium and that the other units are phased out quickly," a London-based energy analyst at an investment bank said.
Environment minister Norbert Roettgen, a close Merkel ally, fuelled the debate on Monday as he called for a quicker shutdown of Germany's nuclear reactors. [ID:nLDE72R0JT]
BULLISH FOR CARBON, POWER
The benchmark contract for EU Allowances CFI2Zc1 rose as high as 17.35 euros a tonne early on Monday, the highest in eight days, while coal prices for year-ahead delivery rose above $130 per tonne, maintaining highs seen last week.
"Getting rid of old nuclear plants means plants will run more coal and gas. That means around 70 million tonnes of extra carbon dioxide will be emitted and carbon is up on this prospect for now. The question is how much is this worth in terms of additional carbon price?" said Emmanuel Fages, analyst at Societe Generale/orbeo.
European Energy Commissioner Guenther Oettinger, who before his position in Brussels was Prime Minister of the state of Baden-Wuerttemberg, also supported the view that coal will act as a substitute to nuclear in Germany.
UTILITIES, RENEWABLES GAIN
Share prices in German utilities rose on the back of high gains in power prices and the prospect that utilities may be able to see higher returns from coal and gas plants to substitute the loss in nuclear capacity. Shares in utility RWE (RWEG.DE: Quote) initially fell on Monday but rebounded later to rise 0.43 percent above Friday's close to 44.88 euro at 1055 GMT on Monday, while shares in E.ON (EONGn.DE: Quote) were down 0.16 percent.
Renewable energy shares in Germany continued their strong gains and the OekoDAX , one of the country's biggest renewable stocks was up 6.5 percent on Monday, while the S&P Global Clean Energy Index .SPGTCLEE was up 1.9 percent.
Renewable stocks have soared since Japan's March 11 earthquake and tsunami which damaged nuclear power reactors and caused radioactive leaks.
The global backlash against nuclear power has boosted the outlook for renewable energy as governments ponder their nuclear options.
The election outcome in Baden-Wuerttemberg on Sunday is likely to mean an end to the 58 year long rule in the state of chancellor Angela Merkel's conservative CDU party.
This is likely to leave the anti-nuclear Green Party in control of the utility EnBW (EBKG.DE: Quote), which operates four nuclear reactors, two each at Neckarwestheim and Philippsburg.
It would be the first time that the Green Party has headed a state government in Germany.
The CDU's pro-nuclear policies, which included buying a majority stake in EnBW last year, were punished by Baden-Wuerttemberg voters after the nuclear crisis in Japan.
The opposition Greens claimed about around 25 percent of the vote and will likely form a coalition with the Social Democrats, who took around 23 percent of the votes.
Mugabe Vows to Force Foreign Miners to Sell Stakes in Zimbabwe
March 28, 2011, 6:45 AM EDT
By Nelson Gore Banya and Brian Latham
March 28 - Zimbabwe’s government will make sure foreign companies are “junior partners” in the country, President Robert Mugabe said, after the state published regulations to take 51 percent of mines.
“We are taking back our country,” Mugabe said yesterday in the capital, Harare. “Listen, Britain and America, this is our country. If you have companies which would want to work in our mining sector, they are welcome to come and join us, but we must have our people as the major shareholders.”
Anglo American Plc and Rio Tinto Plc “must transform and become Zimbabwean,” the 87-year-old Mugabe said.
The government, in a March 25 decree, ordered foreign miners to explain within 45 days how they will cede 51 percent of their local assets to “indigenous” Zimbabweans. The companies have six months to sell the stake, according to the decree. The regulations are in line with the Indigenization and Economic Empowerment Act, first signed into law three years ago. The country has the world’s second-biggest platinum and chrome reserves after South Africa.
“It’s another dimension to the struggle,” Mugabe said. “Let that lesson go deep.” Investors should “come as friends, not as masters and superiors,” he said.
Aquarius Platinum Ltd., which owns a stake in a mine in the southern African nation, fell the most in eight months in London trading after it published a statement on the regulations. The Perth, Australia-based company said March 25 that its Mimosa Mining Co. unit is in discussions with the Zimbabwean authorities to find out how to comply with the law and is “confident it will be in a strong position to meet the requirements.”
No Commitment
Aquarius dropped as much as 7.5 percent to 342.4 pence, the biggest decline since July 19, and traded at 349.6 pence as of 11:35 a.m. in London. The shares dropped 6.1 percent in Johannesburg.
Calls by Bloomberg News to Rio Tinto’s Harare unit today to seek comment weren’t immediately answered. The company declined to comment when its London headquarters was called by phone March 25.
It’s unclear whether companies will get a market price, or any payment, for the shares they are forced to sell, Harare- based independent economist John Robertson said in an e-mailed statement today.
“Non-payment for what is being purchased would normally be considered very good cause for not parting with the asset, but it appears that government has no intention of offering the mining companies the right to cancel the sale of their shares on such grounds,” Robertson said.
“The much more serious longer-term effect of these regulations will be the almost complete arrest of new mining investment inflows,” he said.
Mugabe’s Zimbabwe African National Union-Patriotic Front is in a power-sharing government with the Movement for Democratic Change, led by Prime Minister Morgan Tsvangirai. The law doesn’t allow for expropriation or nationalization, Tsvangirai said on March 8. (By Bloomberg)
“We are taking back our country,” Mugabe said yesterday in the capital, Harare. “Listen, Britain and America, this is our country. If you have companies which would want to work in our mining sector, they are welcome to come and join us, but we must have our people as the major shareholders.”
Anglo American Plc and Rio Tinto Plc “must transform and become Zimbabwean,” the 87-year-old Mugabe said.
The government, in a March 25 decree, ordered foreign miners to explain within 45 days how they will cede 51 percent of their local assets to “indigenous” Zimbabweans. The companies have six months to sell the stake, according to the decree. The regulations are in line with the Indigenization and Economic Empowerment Act, first signed into law three years ago. The country has the world’s second-biggest platinum and chrome reserves after South Africa.
“It’s another dimension to the struggle,” Mugabe said. “Let that lesson go deep.” Investors should “come as friends, not as masters and superiors,” he said.
Aquarius Platinum Ltd., which owns a stake in a mine in the southern African nation, fell the most in eight months in London trading after it published a statement on the regulations. The Perth, Australia-based company said March 25 that its Mimosa Mining Co. unit is in discussions with the Zimbabwean authorities to find out how to comply with the law and is “confident it will be in a strong position to meet the requirements.”
No Commitment
Aquarius dropped as much as 7.5 percent to 342.4 pence, the biggest decline since July 19, and traded at 349.6 pence as of 11:35 a.m. in London. The shares dropped 6.1 percent in Johannesburg.
Calls by Bloomberg News to Rio Tinto’s Harare unit today to seek comment weren’t immediately answered. The company declined to comment when its London headquarters was called by phone March 25.
It’s unclear whether companies will get a market price, or any payment, for the shares they are forced to sell, Harare- based independent economist John Robertson said in an e-mailed statement today.
“Non-payment for what is being purchased would normally be considered very good cause for not parting with the asset, but it appears that government has no intention of offering the mining companies the right to cancel the sale of their shares on such grounds,” Robertson said.
“The much more serious longer-term effect of these regulations will be the almost complete arrest of new mining investment inflows,” he said.
Mugabe’s Zimbabwe African National Union-Patriotic Front is in a power-sharing government with the Movement for Democratic Change, led by Prime Minister Morgan Tsvangirai. The law doesn’t allow for expropriation or nationalization, Tsvangirai said on March 8. (By Bloomberg)
Africa iron ore to hit Australia's trade
March 28, 2011 - 5:54PM By Alison Bell
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
UK iron ore imports in 2010 up by 15pct
Monday, 28 Mar 2011
According to UK foreign trade statistics, iron ore imports to the country in 2010 turned out to be 10.597 million tons, an increase by 15.4% from the previous year. Though it is on a track to recovery, it is still much less compared to the recent peak at 17.435 million tonnes in 2007.
Crude ore production volume in 2010 was 9.709 million tonnes, a decrease by 3.7% from the previous year. Production peak was in 2007 at 14.317 million tonnes.
(Sourced :The TEX Report)
According to UK foreign trade statistics, iron ore imports to the country in 2010 turned out to be 10.597 million tons, an increase by 15.4% from the previous year. Though it is on a track to recovery, it is still much less compared to the recent peak at 17.435 million tonnes in 2007.
Crude ore production volume in 2010 was 9.709 million tonnes, a decrease by 3.7% from the previous year. Production peak was in 2007 at 14.317 million tonnes.
(Sourced :The TEX Report)
Iron ore price negotiations - NMDC may decide ore prices for domestic users by mid April
Monday, 28 Mar 2011
State run NMDC is likely to delay revision in iron ore prices for the April to June quarter by 15 days to mid April as long-term contracts with Japan .se steel mills have not been renewed yet.
Mr Rana Som CMD of NMDC told PTI that "This time there could be little delay as contracts with Japanese firms are yet to be renewed. Domestic prices are benchmarked to that prices. So, we will take a view on that after some time, likely by middle of April.”
However, the NMDC Chairman was hopeful that the issue will soon get government clearance and contracts with the Japanese firms will be signed at the earliest.
Mr Som said that "It is at the higher levels and I hope it to be approved soon. I am sure that the contract will be renewed as early as possible adding that the company can not move ahead without government approval.”
Earlier, the company used to revise the iron ore prices at the beginning of a particular quarter. It had raised the prices by about 5.22% in January for the last quarter of this fiscal.(sourced:PTI)
Mr Rana Som CMD of NMDC told PTI that "This time there could be little delay as contracts with Japanese firms are yet to be renewed. Domestic prices are benchmarked to that prices. So, we will take a view on that after some time, likely by middle of April.”
However, the NMDC Chairman was hopeful that the issue will soon get government clearance and contracts with the Japanese firms will be signed at the earliest.
Mr Som said that "It is at the higher levels and I hope it to be approved soon. I am sure that the contract will be renewed as early as possible adding that the company can not move ahead without government approval.”
Earlier, the company used to revise the iron ore prices at the beginning of a particular quarter. It had raised the prices by about 5.22% in January for the last quarter of this fiscal.(sourced:PTI)
Euro coal June DES ARA trades at USD 128 per tonne
Monday, 28 Mar 2011
Traders and utilities said that prompt European physical coal prices held steady again on Friday, held up more by strong swaps values than physical demand.
Utility sources said that demand for coal in Europe has shrivelled now that German utilities have bought what they need for the near-term and stockpiles in France, Britain and Scandinavia are fairly high.
A European utility source said that "We're still getting offers of almost every type of coal but there's nowhere to put it even if the discount to API2 drops further and we were tempted to buy.”
Prices of close to USD 130.00 a tonne DES ARA do not reflect the abundance of coal supply in Europe but have been hoisted to that level by strong coal swaps prices.
Traders said that swaps have been reacting more to oil volatility and Middle East unrest plus an improvement in the dark spread the profit to be made from generating using coal as fuel, rather than fundamental factors.
One trader said that "Europe is horrible at the moment. Nobody's buying anything, not even the Scandinavians.”
Low water levels on the Rhine and Danube rivers mean barges carrying coal cannot sail fully loaded. This is also dissuading German buyers from taking more prompt coal at present.
In Asia the market seems to be rebalancing quickly after the initial panic about distressed cargoes as a result of the Japanese earthquake and tsunami. (sourced Thomson Reuters)
Traders and utilities said that prompt European physical coal prices held steady again on Friday, held up more by strong swaps values than physical demand.
Utility sources said that demand for coal in Europe has shrivelled now that German utilities have bought what they need for the near-term and stockpiles in France, Britain and Scandinavia are fairly high.
A European utility source said that "We're still getting offers of almost every type of coal but there's nowhere to put it even if the discount to API2 drops further and we were tempted to buy.”
Prices of close to USD 130.00 a tonne DES ARA do not reflect the abundance of coal supply in Europe but have been hoisted to that level by strong coal swaps prices.
Traders said that swaps have been reacting more to oil volatility and Middle East unrest plus an improvement in the dark spread the profit to be made from generating using coal as fuel, rather than fundamental factors.
One trader said that "Europe is horrible at the moment. Nobody's buying anything, not even the Scandinavians.”
Low water levels on the Rhine and Danube rivers mean barges carrying coal cannot sail fully loaded. This is also dissuading German buyers from taking more prompt coal at present.
In Asia the market seems to be rebalancing quickly after the initial panic about distressed cargoes as a result of the Japanese earthquake and tsunami. (sourced Thomson Reuters)
L & L Energy Announces Acquisition of DaPing Mine; Facility to Add 150,000 Tons of Met Coal Production
Mon Mar28, 2011
Acquisition to add estimated $36 million in annual revenues and $11 million net income for L&L
SEATTLE, March 28, 2011 /PRNewswire/ -- L & L Energy, Inc., (Nasdaq: LLEN) ("L&L" or the "Company"), a U.S.-based company founded in 1995 with coal mining and distribution businesses in China, announced today that it has entered into a contract to acquire a majority controlling interest (60%) of the DaPing coal mine ("The Mine" or "DaPing"). The acquisition became effective on March 15, 2011.
The DaPing mine is located in PanXian, Guizhou Province in China. The mine currently produces approximately 150,000 tons of high-quality, low-sulfur metallurgical coal per year and is expanding to 300,000 tons of production capacity, which is expected to be completed in 2012. The Mine is expected to generate an estimated $36 million in annual revenue based on current production capacity and an average coal price of $240 per ton. The Mine is expected to contribute an estimated $11 million in net income attributable to L&L for the fiscal year ending April 30, 2012.
Pursuant to the agreement, L&L and the current owner of DaPing will form a U.S. joint venture company in China (the "JV"). L&L will contribute approximately USD $18 million in exchange for management control and 60% equity of the new joint venture company on a net equity basis. An additional $3 million in capital expenditures is planned to be injected by L&L for the improvement of safety and operational efficiency of the mine. In keeping with the Company's acquisition strategy, payments to the DaPing purchase price will be in installments. The current owner of the Mine will contribute mining rights and all mine-related assets to the JV.
Dickson Lee, Chairman and CEO of L&L, stated: "This agreement represents an important step forward in our long-term growth strategy. By acquiring a majority stake in the DaPing mine, we will be better positioned to meet the rising coal demand in China and more specifically Guizhou Province, which is undergoing rapid industrialization due to the Chinese government's economic development initiatives. The current owner of DaPing has a profitable operating history and close relationships with distributors in the region. We expect to expand upon its already profitable operation, which is expected to significantly contribute revenue and net income to L&L's operations."
Mr. Lee continued, "With our strong reputation, we are very well situated to benefit from government policies encouraging the consolidation of smaller mines. We will continue to pursue strategic acquisition opportunities and look forward to updating shareholders on our progress in the months ahead."
About L & L Energy
L & L Energy (Nasdaq: LLEN), founded in 1995 and headquartered in Seattle, is primarily engaged in coal mining, washing, coking and distribution in Yunnan and Guizhou Provinces. The Company also has marketing offices in Shenzhen, Guangzhou, Hong Kong and Taipei. The Company's major products are in thermal and metallurgical coals. For more information, see www.llenergyinc.com.
(sourced:PRNewswire)
SEATTLE, March 28, 2011 /PRNewswire/ -- L & L Energy, Inc., (Nasdaq: LLEN) ("L&L" or the "Company"), a U.S.-based company founded in 1995 with coal mining and distribution businesses in China, announced today that it has entered into a contract to acquire a majority controlling interest (60%) of the DaPing coal mine ("The Mine" or "DaPing"). The acquisition became effective on March 15, 2011.
The DaPing mine is located in PanXian, Guizhou Province in China. The mine currently produces approximately 150,000 tons of high-quality, low-sulfur metallurgical coal per year and is expanding to 300,000 tons of production capacity, which is expected to be completed in 2012. The Mine is expected to generate an estimated $36 million in annual revenue based on current production capacity and an average coal price of $240 per ton. The Mine is expected to contribute an estimated $11 million in net income attributable to L&L for the fiscal year ending April 30, 2012.
Pursuant to the agreement, L&L and the current owner of DaPing will form a U.S. joint venture company in China (the "JV"). L&L will contribute approximately USD $18 million in exchange for management control and 60% equity of the new joint venture company on a net equity basis. An additional $3 million in capital expenditures is planned to be injected by L&L for the improvement of safety and operational efficiency of the mine. In keeping with the Company's acquisition strategy, payments to the DaPing purchase price will be in installments. The current owner of the Mine will contribute mining rights and all mine-related assets to the JV.
Dickson Lee, Chairman and CEO of L&L, stated: "This agreement represents an important step forward in our long-term growth strategy. By acquiring a majority stake in the DaPing mine, we will be better positioned to meet the rising coal demand in China and more specifically Guizhou Province, which is undergoing rapid industrialization due to the Chinese government's economic development initiatives. The current owner of DaPing has a profitable operating history and close relationships with distributors in the region. We expect to expand upon its already profitable operation, which is expected to significantly contribute revenue and net income to L&L's operations."
Mr. Lee continued, "With our strong reputation, we are very well situated to benefit from government policies encouraging the consolidation of smaller mines. We will continue to pursue strategic acquisition opportunities and look forward to updating shareholders on our progress in the months ahead."
About L & L Energy
L & L Energy (Nasdaq: LLEN), founded in 1995 and headquartered in Seattle, is primarily engaged in coal mining, washing, coking and distribution in Yunnan and Guizhou Provinces. The Company also has marketing offices in Shenzhen, Guangzhou, Hong Kong and Taipei. The Company's major products are in thermal and metallurgical coals. For more information, see www.llenergyinc.com.
(sourced:PRNewswire)
Iron ore monopoly may end by 2015
Mon Mar28, 2011
The monopoly held on China's iron ore supply by a small number of international companies will be "thoroughly" broken up by 2015 as increased investment in the sector boosts global production, according to an expert in China's mining industry.
"The surging price of iron ore since 2003 has attracted a huge amount of investment in the sector, and there will soon be a concentrated release of capacity, breaking the monopoly a few big companies hold," Wu Rongqing, chief engineer of the industry development department at the China Mining Association, said on Wednesday.
"In fact, the global iron ore reserve is so rich that it can satisfy consumption for the next 100 years," Wu said in a speech at the China Iron Ore 2011 conference on Wednesday.
Vale SA, Rio Tinto PLC and BHP Billiton Ltd, the top three global suppliers of iron ore, have some high-quality ore, but they don't have all of the world's iron ore resources, he said. China will be less dependent on them, as it increases its own production and diversifies its import destination, said Wu.
Domestic demand for iron ore has increased sharply over the past few years, triggered by the nation's rapid economic development. But the country's iron ore supply has not kept pace, resulting in dependence on imports, mostly from the big three iron ore miners.
China, the world's largest iron ore importer and home to the world's largest steel industry, has complained that the big ore suppliers have been trying to force spot pricing on Chinese customers since Vale SA and Rio Tinto Group scrapped a decades-old annual pricing system in favor of a more flexible quarterly regime last year.
The three suppliers account for about two-thirds of the global supply of the resource.
In 2010, China's iron ore imports dipped 1.4 percent to 619 million tons, but the import price rose 61 percent to $145 a ton, as a result of the new pricing system.
Chinese steelmakers had to pay 196 billion yuan ($30 billion) more for the imports, squeezing their profit margin to 2.9 percent from 7.3 percent in 2007, according to data from the Ministry of Industry and Information Technology. That compares with an average profit margin of 6.2 percent for the nation's industrial companies.
Rio Tinto, the world's second-largest supplier of iron ore, said in February that it registered $14.3 billion in net profit in 2010, up 50.5 percent from the $9.5 billion in the previous year. Its iron ore unit contributed more than $10 billion to the profit.
Wu said the international iron ore market will become "oversupplied" from the current classification of "tight-supplied" as early as 2013, as China and the rest of the world enlarge their production.
China will increase its iron ore production to 1.5 billion tons by 2015, up from 1.1 billion tons in 2010, in a bid to reduce its reliance on imports, Wu said.
The production of finished iron ore is projected to reach 760 million tons by 2015, when demand will be about 1.3 billion tons. That will reduce China's import dependency rate to about 42 percent from 63 percent in 2010, he said.
Meanwhile, overseas iron ore mining rights controlled by Chinese miners will increase to 200 million tons by 2015, from the current 90 million tons, as Chinese companies quicken the pace of overseas mine acquisitions.
China's fixed-asset investment in iron ore mining and selection rose 26.4 percent year-on-year in 2010 to reach 106.6 billion yuan. Planning and construction are underway to reach 480 million tons of mining and selection capacity annually, Wu said. (sourced:China Daily)
"The surging price of iron ore since 2003 has attracted a huge amount of investment in the sector, and there will soon be a concentrated release of capacity, breaking the monopoly a few big companies hold," Wu Rongqing, chief engineer of the industry development department at the China Mining Association, said on Wednesday.
"In fact, the global iron ore reserve is so rich that it can satisfy consumption for the next 100 years," Wu said in a speech at the China Iron Ore 2011 conference on Wednesday.
Vale SA, Rio Tinto PLC and BHP Billiton Ltd, the top three global suppliers of iron ore, have some high-quality ore, but they don't have all of the world's iron ore resources, he said. China will be less dependent on them, as it increases its own production and diversifies its import destination, said Wu.
Domestic demand for iron ore has increased sharply over the past few years, triggered by the nation's rapid economic development. But the country's iron ore supply has not kept pace, resulting in dependence on imports, mostly from the big three iron ore miners.
China, the world's largest iron ore importer and home to the world's largest steel industry, has complained that the big ore suppliers have been trying to force spot pricing on Chinese customers since Vale SA and Rio Tinto Group scrapped a decades-old annual pricing system in favor of a more flexible quarterly regime last year.
The three suppliers account for about two-thirds of the global supply of the resource.
In 2010, China's iron ore imports dipped 1.4 percent to 619 million tons, but the import price rose 61 percent to $145 a ton, as a result of the new pricing system.
Chinese steelmakers had to pay 196 billion yuan ($30 billion) more for the imports, squeezing their profit margin to 2.9 percent from 7.3 percent in 2007, according to data from the Ministry of Industry and Information Technology. That compares with an average profit margin of 6.2 percent for the nation's industrial companies.
Rio Tinto, the world's second-largest supplier of iron ore, said in February that it registered $14.3 billion in net profit in 2010, up 50.5 percent from the $9.5 billion in the previous year. Its iron ore unit contributed more than $10 billion to the profit.
Wu said the international iron ore market will become "oversupplied" from the current classification of "tight-supplied" as early as 2013, as China and the rest of the world enlarge their production.
China will increase its iron ore production to 1.5 billion tons by 2015, up from 1.1 billion tons in 2010, in a bid to reduce its reliance on imports, Wu said.
The production of finished iron ore is projected to reach 760 million tons by 2015, when demand will be about 1.3 billion tons. That will reduce China's import dependency rate to about 42 percent from 63 percent in 2010, he said.
Meanwhile, overseas iron ore mining rights controlled by Chinese miners will increase to 200 million tons by 2015, from the current 90 million tons, as Chinese companies quicken the pace of overseas mine acquisitions.
China's fixed-asset investment in iron ore mining and selection rose 26.4 percent year-on-year in 2010 to reach 106.6 billion yuan. Planning and construction are underway to reach 480 million tons of mining and selection capacity annually, Wu said. (sourced:China Daily)
China approves plan for state emergency coal reserve
March 28, 2011 By He Shan
The State Council, China's cabinet, has approved a program for an emergency national coal reserve, which will build up five million tons of coal this year, according to a source from the China Coal Industry Association.
The coal reserve will ensure the supply for power firms in case a major natural disaster or accident disrupts the coal supply.
Ten major coal mining companies, including Shenhua Group Corp. Ltd. and China National Coal Group Corp., have been selected to build storage facilities for coal across the country, while eight major coal shipping ports, including Qinhuangdao Port, Zhoushan Port, Guangzhou Port, Wuhan Port and Zhuhai Port will also be involved in the program.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy. ( sourced:China.org.cn)
The coal reserve will ensure the supply for power firms in case a major natural disaster or accident disrupts the coal supply.
Ten major coal mining companies, including Shenhua Group Corp. Ltd. and China National Coal Group Corp., have been selected to build storage facilities for coal across the country, while eight major coal shipping ports, including Qinhuangdao Port, Zhoushan Port, Guangzhou Port, Wuhan Port and Zhuhai Port will also be involved in the program.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy. ( sourced:China.org.cn)
Jindals, Reddys may jointly bid for Hancock's assets
Mon Mar28, 2011
Tags : CNPC, Sinopec Group, CNOOC,
BANGALORE/MUMBAI: The Jindals and the Reddys of the GVK Group could join hands with a third Indian company to offer a combined bid for the coal assets of Australia's Hancock Coal, which is valued at more than $2.7 billion, as a worldwide race for thermal coal spikes valuations of the mineral. The Jindals' JSW Energy has suggested to its Indian counterparts, including the Aditya Birla group , on forming a consortium similar to the strategy typically adopted by Chinese companies, to pool finances and present a formidable bid for large global assets.
"We have suggested this option and are awaiting their reaction," said a person directly involved in the negotiations. The valuations of the (Hancock) mines has become very expensive and it would be a good idea to put in a joint bid," he added.
The Aditya Birla Group, which is looking at the mines through its unlisted subsidiary Essel Mining, didn't comment on the consortium proposal. GVK Power vice- chairman Sanjay Reddy said that although his firm is keen on owning coal mines in Australia and Indonesia, he didn't elaborate on the bids. Indian state-run companies have already formed such a consortium, the International Coal Ventures Ltd that looks at bidding for coal and ore assets.
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in the Queensland province, as it expects strong valuations for the assets which are estimated to have 7.9 billion tonnes of thermal coal, according to the company's website. Thermal coal is used by power producers and although India has large deposits of the mineral, a high ash content and inadequate production by state-run major Coal India, is forcing Indian utilities to scout overseas for the coal. So far, Australia, Indonesia and countries in Africa have been common destinations for Indian power firms.
Korean firm Korya Electric and Power Company and two other Chinese bidders are also in the fray for Hancock, said the people who are aware of the negotiations with the Australian company. In the past, Chinese oil giants, including CNPC, Sinopec Group and CNOOC, have shared strengths to bid for large oil assets which are typically valued at more than $10 billion. The firms have pooled finances and technical skills and manpower to present an attractive package for the shareholders of target companies.
"While it's a convenient method to acquire large assets, varied management styles of the companies in the consortium could prove to be a handicap," said a person from a financial services company.
A delegation from Hancock is scheduled to visit India early next month for final discussions with Indian companies, said one of the persons cited earlier. The delegation is also scheduled to visit China after the India trip. Hancock does not own a captive port facility to transport coal which could have prompted several bidders to withdraw from indicative bids. The costs of building an infrastructure, like a port, would almost as that of the mine. (sourced:Economic Times)
"We have suggested this option and are awaiting their reaction," said a person directly involved in the negotiations. The valuations of the (Hancock) mines has become very expensive and it would be a good idea to put in a joint bid," he added.
The Aditya Birla Group, which is looking at the mines through its unlisted subsidiary Essel Mining, didn't comment on the consortium proposal. GVK Power vice- chairman Sanjay Reddy said that although his firm is keen on owning coal mines in Australia and Indonesia, he didn't elaborate on the bids. Indian state-run companies have already formed such a consortium, the International Coal Ventures Ltd that looks at bidding for coal and ore assets.
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in the Queensland province, as it expects strong valuations for the assets which are estimated to have 7.9 billion tonnes of thermal coal, according to the company's website. Thermal coal is used by power producers and although India has large deposits of the mineral, a high ash content and inadequate production by state-run major Coal India, is forcing Indian utilities to scout overseas for the coal. So far, Australia, Indonesia and countries in Africa have been common destinations for Indian power firms.
Korean firm Korya Electric and Power Company and two other Chinese bidders are also in the fray for Hancock, said the people who are aware of the negotiations with the Australian company. In the past, Chinese oil giants, including CNPC, Sinopec Group and CNOOC, have shared strengths to bid for large oil assets which are typically valued at more than $10 billion. The firms have pooled finances and technical skills and manpower to present an attractive package for the shareholders of target companies.
"While it's a convenient method to acquire large assets, varied management styles of the companies in the consortium could prove to be a handicap," said a person from a financial services company.
A delegation from Hancock is scheduled to visit India early next month for final discussions with Indian companies, said one of the persons cited earlier. The delegation is also scheduled to visit China after the India trip. Hancock does not own a captive port facility to transport coal which could have prompted several bidders to withdraw from indicative bids. The costs of building an infrastructure, like a port, would almost as that of the mine. (sourced:Economic Times)
Tags : CNPC, Sinopec Group, CNOOC,
ANALYSIS-Japan nuclear crisis stirs worries about leadership vacuum
Mon Mar 28, 2011 10:02am GMT
By Linda Sieg
By Linda Sieg
March 28 (Reuters) - Who's running the show as Japan grapples with its worst crisis since the end of World War Two?
Concerns are growing over an apparent leadership vacuum as Japan fights to prevent catastrophe at a crippled nuclear plant and recover from the deadly earthquake and tsunami that has devastated the country's northeast.
Engineers have been battling to stabilise the Fukushima nuclear complex since it was damaged by the massive March 11 quake and tsunami, but operator Tokyo Electric Power Co (TEPCO) has conceded it faces a prolonged and risky operation to avert a disastrous meltdown at the plant, 240 km (150 miles) from Tokyo.
"This nuclear accident needs to be dealt with as a national security issue, not just a problem for TEPCO, and solved as soon as possible," said Toshiro Muto, a former Bank of Japan deputy governor who is now chairman of the Daiwa Institute of Research.
Underscoring public angst, a Kyodo news agency poll released on Sunday showed nearly 60 percent of respondents disapproved of the government's handling of the nuclear crisis and almost two-thirds felt Prime Minister Naoto Kan was not exercising leadership.
"It is quite clear that the vested interests are too entrenched and the characters involved are too weak to take decisive actions and responsibility in the sense of forward-looking, pragmatic action," said Jesper Koll, director of equity research at JP Morgan Securities.
He said Japan should turn to nuclear experts from around the world to help them stabilise a situation that, if anything, appears to be getting worse.
Frustration is also growing among those who have fled their homes near the plant. The government has ordered those within a 20 km (12.4 mile) radius to leave and is encouraging those living in a 20-30 km ring to do the same.
"The scary thing is the radiation," said Mitsuharu Watanobe, a retired high school teacher who had to leave his home about 25 km from the damaged complex. "There is a gap between what the newspapers write and what the government is saying. I want the government to tell the truth more."
Chief Cabinet Secretary Yukio Edano has received praise for his performance as top government spokesman, keeping the public up to date on the crisis in twice-daily news conferences.
But few think the 46-year-old lawmaker is running the show.
And the information he can share is only as reliable as what he is told by TEPCO and regulators, whose comments are often conflicting and confusing.
On Monday, Edano berated TEPCO for announcing what turned out to be mistaken radiation readings, calling the error "absolutely unforgiveable".
Asked later if the pressure vessel at one of the reactors was damaged, he referred the query to the nuclear safety agency.
Analysts said the government seemed to be leaving TEPCO, which has had a rocky past of suspected false reports, too much in control and that coordination among the government, regulators and the firm was messy.
Kan, for his part, has given three news conference since the disaster struck but has otherwise mostly stayed out of public view. He has not yet visited the tsunami-hit northeast, although media said he now plans to do so on April 2.
The prime minister has come under fire for flying over the nuclear complex a day after the tsunami, although Edano denied reports that the flight delayed steps to cope with the accident.
In a sign the government was feeling overwhelmed, Kan on Saturday appointed Sumio Mabuchi, an ex-transport minister as a special advisor on the nuclear crisis.
That followed the appointment of his former No.2 minister, Yoshito Sengoku, as a deputy to Edano to beef up relief and reconstruction efforts. The quake and tsunami have left more than 27,000 dead or missing and one quarter of a million people living in shelters in a stricken swath of northeastern Japan.
Mabuchi and Sengoku lost their cabinet posts in January after being censured by the opposition-controlled upper house of parliament for their handling of a territorial row with China.
"There is no one looking at things overall," said Hirotaka Futatsuki, an independent political analyst. "Things are proceeding piecemeal and Kan is not exercising general control." (Reuters)
Concerns are growing over an apparent leadership vacuum as Japan fights to prevent catastrophe at a crippled nuclear plant and recover from the deadly earthquake and tsunami that has devastated the country's northeast.
Engineers have been battling to stabilise the Fukushima nuclear complex since it was damaged by the massive March 11 quake and tsunami, but operator Tokyo Electric Power Co (TEPCO) has conceded it faces a prolonged and risky operation to avert a disastrous meltdown at the plant, 240 km (150 miles) from Tokyo.
"This nuclear accident needs to be dealt with as a national security issue, not just a problem for TEPCO, and solved as soon as possible," said Toshiro Muto, a former Bank of Japan deputy governor who is now chairman of the Daiwa Institute of Research.
Underscoring public angst, a Kyodo news agency poll released on Sunday showed nearly 60 percent of respondents disapproved of the government's handling of the nuclear crisis and almost two-thirds felt Prime Minister Naoto Kan was not exercising leadership.
"It is quite clear that the vested interests are too entrenched and the characters involved are too weak to take decisive actions and responsibility in the sense of forward-looking, pragmatic action," said Jesper Koll, director of equity research at JP Morgan Securities.
He said Japan should turn to nuclear experts from around the world to help them stabilise a situation that, if anything, appears to be getting worse.
Frustration is also growing among those who have fled their homes near the plant. The government has ordered those within a 20 km (12.4 mile) radius to leave and is encouraging those living in a 20-30 km ring to do the same.
"The scary thing is the radiation," said Mitsuharu Watanobe, a retired high school teacher who had to leave his home about 25 km from the damaged complex. "There is a gap between what the newspapers write and what the government is saying. I want the government to tell the truth more."
Chief Cabinet Secretary Yukio Edano has received praise for his performance as top government spokesman, keeping the public up to date on the crisis in twice-daily news conferences.
But few think the 46-year-old lawmaker is running the show.
And the information he can share is only as reliable as what he is told by TEPCO and regulators, whose comments are often conflicting and confusing.
On Monday, Edano berated TEPCO for announcing what turned out to be mistaken radiation readings, calling the error "absolutely unforgiveable".
Asked later if the pressure vessel at one of the reactors was damaged, he referred the query to the nuclear safety agency.
Analysts said the government seemed to be leaving TEPCO, which has had a rocky past of suspected false reports, too much in control and that coordination among the government, regulators and the firm was messy.
Kan, for his part, has given three news conference since the disaster struck but has otherwise mostly stayed out of public view. He has not yet visited the tsunami-hit northeast, although media said he now plans to do so on April 2.
The prime minister has come under fire for flying over the nuclear complex a day after the tsunami, although Edano denied reports that the flight delayed steps to cope with the accident.
In a sign the government was feeling overwhelmed, Kan on Saturday appointed Sumio Mabuchi, an ex-transport minister as a special advisor on the nuclear crisis.
That followed the appointment of his former No.2 minister, Yoshito Sengoku, as a deputy to Edano to beef up relief and reconstruction efforts. The quake and tsunami have left more than 27,000 dead or missing and one quarter of a million people living in shelters in a stricken swath of northeastern Japan.
Mabuchi and Sengoku lost their cabinet posts in January after being censured by the opposition-controlled upper house of parliament for their handling of a territorial row with China.
"There is no one looking at things overall," said Hirotaka Futatsuki, an independent political analyst. "Things are proceeding piecemeal and Kan is not exercising general control." (Reuters)
Rio Tinto still short of 50% on $3.9bln Riversdale bid
Mon Mar 28, 2011
MELBOURNE, March 28 (Reuters) - Global miner Rio Tinto remains short of its target of holding more than 50 percent of shares in Riversdale Mining , ahead of a Monday evening deadline on its A$3.9 billion takeover offer for the Mozambique-focused coal miner.
It had reached just under 40 percent as of Monday morning, Rio Tinto said, with still no word on whether Riversdale's two biggest shareholders, India's Tata Steel and Brazil's CSN , would sell any of their shares.
Riversdale's shareholders will receive A$16.50 a share if Rio reaches more than 50 percent acceptances by 0800 GMT on Monday. Otherwise the offer reverts to A$16 a share, remaining open until April 6.
It had reached just under 40 percent as of Monday morning, Rio Tinto said, with still no word on whether Riversdale's two biggest shareholders, India's Tata Steel and Brazil's CSN , would sell any of their shares.
Riversdale's shareholders will receive A$16.50 a share if Rio reaches more than 50 percent acceptances by 0800 GMT on Monday. Otherwise the offer reverts to A$16 a share, remaining open until April 6.
Fortescue Metals considers dual listing in Hong Kong - report
Mon Mar 28, 2011
MELBOURNE, March 28 (Reuters) - Australia's no.3 iron ore miner Fortescue Metals Group is considering a dual listing in Hong Kong to give it access to new sources of capital as it embarks on a massive expansion of capacity, a newspaper reported on Monday.
"We look at all of the options," Fortescue executive director Andrew Forrest was quoted saying in the Australian Financial Review.
Forrest met with Hong Kong Exchanges and Clearing (HKEx) officials in Hong Kong last week, the newspaper said, adding that Fortescue has also considered a listing in Shanghai.
HKEx is pushing to attract Australian resource company listings, a potential new competitive threat for the Australian Securities Exchange , which is looking to merge with Singapore Exchange Ltd .
Last week, Australian mining magnate Clive Palmer said he was delaying a planned $3 billion float of his company Resourcehouse in Hong Kong due to volatile market conditions.
HKEx is reviewing its listing rules to make it easier for resources companies to list.
"I believe as the investors here become more fluent in understanding mining and natural resource companies there is an opportunity for us to potentially make those rules even more flexible," the newspaper quoted an HKEx spokesman saying. (sourced:Reuters)
MELBOURNE, March 28 (Reuters) - Australia's no.3 iron ore miner Fortescue Metals Group is considering a dual listing in Hong Kong to give it access to new sources of capital as it embarks on a massive expansion of capacity, a newspaper reported on Monday.
"We look at all of the options," Fortescue executive director Andrew Forrest was quoted saying in the Australian Financial Review.
Forrest met with Hong Kong Exchanges and Clearing (HKEx) officials in Hong Kong last week, the newspaper said, adding that Fortescue has also considered a listing in Shanghai.
HKEx is pushing to attract Australian resource company listings, a potential new competitive threat for the Australian Securities Exchange , which is looking to merge with Singapore Exchange Ltd .
Last week, Australian mining magnate Clive Palmer said he was delaying a planned $3 billion float of his company Resourcehouse in Hong Kong due to volatile market conditions.
HKEx is reviewing its listing rules to make it easier for resources companies to list.
"I believe as the investors here become more fluent in understanding mining and natural resource companies there is an opportunity for us to potentially make those rules even more flexible," the newspaper quoted an HKEx spokesman saying. (sourced:Reuters)
Limited access at Japan quake-hit ports, 7 oil terminals shut
Mon Mar 28, 2011 7:21am GMT
* Only 30 pct of shipping berths at quake-hit ports open
* Radiation levels at Tokyo Bay ports remain "very safe"
* Undamaged ports able to absorb lost northeast capacity
By Randy Fabi and Chikako Mogi
SINGAPORE/TOKYO, March 28 (Reuters) - Seven small oil terminals and most of the shipping berths at Japan's northeastern ports remain closed more than two weeks after a devastating earthquake, government and industry officials said.
All 15 key ports damaged by the March 11 disaster have reopened for recovery efforts, Japan's transport ministry said on its website, but access was limited. As of Sunday, only 30 percent of the 208 shipping berths at the facilities were open.
A terminal operated by Mitsubishi Chemical was likely to stay shut for months, while inspections were being conducted at facilities run by Shin Etsu Chemical , Kashima Denkai, Kashima Kyobi and Kashima Oil.
JX Nippon Oil & Energy's terminal at the Port of Sendai and Onahama Petroleum's loading facility at Onahama were also closed and it was not known when operations would resume, maritime firm Inchcape Shipping Services said.
Despite ports reopening, seaborne trade was at a standstill in parts of northeast Japan as shipping companies divert their vessels away from the quake-crippled Fukushima nuclear plant due to radiation fears. [ID:nL3E7EP0DC]
Engineers have been battling to control the six-reactor complex since the magnitude 9.0 earthquake and ensuing tsunami, which left more than 27,000 people dead or missing.
Fires, explosions and radiation leaks have repeatedly forced them to suspend work on averting a catastrophic meltdown at the plant, which lies 240 km (150 miles) north of Tokyo.
RADIATION FEARS
Radiation levels as of late Sunday in Tokyo Bay ports were below exposure levels the World Health Organisation considered normal, the ministry said.
"Currently, the level of radiation (at ports) in Tokyo City, Yokohama City, Kawasaki City, and Ichikawa City were shown to be at very safe levels to health," it said.
Most shipping companies have limited their exclusion zone from the nuclear plant to around 100 km, halting seaborne trade to the ports of Soma, Onahama and Sendai.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
Hapag-Lloyd has diverted a total of 16 vessels from the ports of Tokyo, Nagoya and Yokohama. A spokesman said the world's fifth-biggest container shipper would resume voyages to Nagoya this week.
Orient Overseas has omitted stops at the three ports for six of its shipping lines.
Some industry officials believed the three companies were overreacting and did not see other firms diverting their cargoes away from Tokyo.
China detected what it said were "abnormal" radiation levels on a Mitsui O.S.K. Lines container ship entering the port of Xiamen in eastern Fujian province last week, local media said.
The vessel, MOL Presence, was rejected, said shipbrokers, was on its way back to Japan and was expected to arrive at the port of Kobe on Wednesday.
Japan has hundreds of ports throughout its coastline with enough capacity to absorb vessels avoiding the northeast, industry officials said. (sourced:Reuters)
* Radiation levels at Tokyo Bay ports remain "very safe"
* Undamaged ports able to absorb lost northeast capacity
By Randy Fabi and Chikako Mogi
SINGAPORE/TOKYO, March 28 (Reuters) - Seven small oil terminals and most of the shipping berths at Japan's northeastern ports remain closed more than two weeks after a devastating earthquake, government and industry officials said.
All 15 key ports damaged by the March 11 disaster have reopened for recovery efforts, Japan's transport ministry said on its website, but access was limited. As of Sunday, only 30 percent of the 208 shipping berths at the facilities were open.
A terminal operated by Mitsubishi Chemical was likely to stay shut for months, while inspections were being conducted at facilities run by Shin Etsu Chemical , Kashima Denkai, Kashima Kyobi and Kashima Oil.
JX Nippon Oil & Energy's terminal at the Port of Sendai and Onahama Petroleum's loading facility at Onahama were also closed and it was not known when operations would resume, maritime firm Inchcape Shipping Services said.
Despite ports reopening, seaborne trade was at a standstill in parts of northeast Japan as shipping companies divert their vessels away from the quake-crippled Fukushima nuclear plant due to radiation fears. [ID:nL3E7EP0DC]
Engineers have been battling to control the six-reactor complex since the magnitude 9.0 earthquake and ensuing tsunami, which left more than 27,000 people dead or missing.
Fires, explosions and radiation leaks have repeatedly forced them to suspend work on averting a catastrophic meltdown at the plant, which lies 240 km (150 miles) north of Tokyo.
RADIATION FEARS
Radiation levels as of late Sunday in Tokyo Bay ports were below exposure levels the World Health Organisation considered normal, the ministry said.
"Currently, the level of radiation (at ports) in Tokyo City, Yokohama City, Kawasaki City, and Ichikawa City were shown to be at very safe levels to health," it said.
Most shipping companies have limited their exclusion zone from the nuclear plant to around 100 km, halting seaborne trade to the ports of Soma, Onahama and Sendai.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
Hapag-Lloyd has diverted a total of 16 vessels from the ports of Tokyo, Nagoya and Yokohama. A spokesman said the world's fifth-biggest container shipper would resume voyages to Nagoya this week.
Orient Overseas has omitted stops at the three ports for six of its shipping lines.
Some industry officials believed the three companies were overreacting and did not see other firms diverting their cargoes away from Tokyo.
China detected what it said were "abnormal" radiation levels on a Mitsui O.S.K. Lines container ship entering the port of Xiamen in eastern Fujian province last week, local media said.
The vessel, MOL Presence, was rejected, said shipbrokers, was on its way back to Japan and was expected to arrive at the port of Kobe on Wednesday.
Japan has hundreds of ports throughout its coastline with enough capacity to absorb vessels avoiding the northeast, industry officials said. (sourced:Reuters)
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