C Limited to acquire Mongolian coking and thermal coal assets

Apr26, 2011

C @ Limited has signed an agreement with an international coal developer that has a significant position in the coking and thermal coal industry in Mongolia.

The agreement provides C @ Limited with an option to acquire 8 highly prospective coal exploration licenses in the South Gobi, near the Chinese border, with access to existing infrastructure. The Company has established a technical team and is ready to develop these assets.

Energio Limited has completed an initial geophysical program on the KCMH Iron Ore Project in Nigeria. The program has enabled the Company to select several primary targets and initial field work at the targets has returned positive results. The company is now preparing access roads in the selected areas for a planned drilling program to commence during Q2 2011.

MACA Limited has received a Letter of Intent from Regis Resources Limited for the provision of mining services at the Garden Well Gold Project. The proposed contract will generate AUD 450 million over 8 years. The services to be provided by MACA include various civil works, drilling, blasting and load and haul. Mobilization to site is expected to occur in the third quarter of the calendar year 2011, subject to successful completion of the necessary approvals and contract negotiations.

Panax Geothermal Limited has signed an agreement with PT Bakrie Power to develop the Ngebel Geothermal Project, a 165 MW geothermal project in Indonesia. Under the terms of the agreement, Panax will earn a 35% working interest in the project through funding of required exploration works before commercial development commences in late 2012.

China may face up to 56 mln T coking coal shortfall -paper

Tue Mar 29, 2011 12:41am GMT

SHANGHAI, March 29 (Reuters) - China, the world's biggest user and producer of coal, may face a shortfall of 56 million tonnes of coking coal this year, the China Securities Journal reported on Tuesday, pushing Chinese steel mills to look further afield to make up the supply gap.

China is expected to produce 513 million tonnes of coking coal, used in steel production, in 2011, but total consumption is expected to reach 569 million tonnes, the paper said, citing forecasts made by top Chinese coal miners and analysts at an industry conference.

Faced with a widening supply gap, Chinese mills are set to boost imports from countries such as Mongolia, Russia and Australia.

However, import growth for the year is expected to fall to around 10 percent, compared with the stellar 37.3 percent growth posted in 2010, said Shanxi Coking Coal Group Ltd General Manager Liu Shengrui.

China imported 47.27 million tonnes of coking coal in 2010, with imports from neighbouring Mongolia surging 278 percent to 15 million tonnes, trailing behind top supplier Australia's 17.4 million tonnes.

Global coking prices are forecast to rise strongly overly the first half of this decade, as producers struggle to keep pace with surging demand led by steel makers from China and India. (Reporting by Fayen Wong; Editing by Ken Wills, sourced Reuters)

Mongolia seeks Australian support for mining boom

By Australia Network's Catherine McGrath
Feb23, 2011

Mongolia may yet become the world's biggest mining country

At the forefront of a potential economic boom is a development of the massive gold and copper mine of Oyu Tolgoi, in the country's south-east.

Mongolia's attempt to develop its vast mineral wealth of uranium, gold, coal and copper featured in discussions in Canberra today between Prime Minister Julia Gillard and her Mongolian counterpart, Sukhbaatar Batbold.

Ms Gillard officially welcomed Mr Batbold at Parliament House and four bilateral agreements were signed in areas of education, training, cabinet processes and scientific transfer.

"This is a remarkable day in the history of Australian diplomacy. The first visit by a Mongolian prime minister in the history of our Commonwealth," Ms Gillard said.

The Mongolian government signed a deal with Rio Tinto and Ivanhoe Mines in 2009 to develop the world's largest new copper and gold project.

The land-locked country maintains strong ties with neighbours Russia and China, but in a policy called Third Neighbours it has consciously been building partnerships with other Asian and key Western nations.

Mr Batbold says he has great hopes for the development.

"The Oyu Tolgoi project is a very important project," he said.

"This is one of the world's largest copper and gold projects and we very much welcome the interest of our partners from our third neighbours."

Skills and training

Mongolia urgently needs infrastructure development, education and skills training for its workers, along with agricultural aid and technological transfer, particularly in mining.

"Mongolia does have a relatively young democracy for about 20 years but we are very proud that we have achieved a lot," Mr Batbold said.

"For these achievements we are very grateful to our friends and partners."

Mongolia has achieved much in recent years.

Once a Soviet satellite state, Mongolia moved towards democracy and a market economy when the USSR collapsed.

Ms Gillard remarked on Mongolia's strong prospects for the future.

"Your country has some of the world's richest mineral deposits and we know that Mongolia seeks partners in foreign investment and technical expertise to help realise that potential. Australia has such expertise and we offer it as friends," she said.

Austrade will open a permanent office in Ulan Bator to support the growing number of Australian companies operating there. Australia is also boosting aid to Mongolia.

Mr Batbold discussed their joint contributions to the ISAF force in Afghanistan and other regional security issues with key Cabinet members.

(sourced:ABC News)
Tags: business-economics-and-finance , industry, mining, government-and-politics, federal-government, world-politics, australia, mongolia

India's SAIL to invest $12 bln in 4 overseas plants

Mon Feb 21, 2011 7:36am GMT

* Steelmaker plans to fund upto 80 percent through debt

* Plant start-up will take 3 years from initial agreement

* Overseas plants likely to produce 3 mln T of steel each (Adds quotes, background)

NEW DELHI, Feb 21 (Reuters) - Steel Authority of India (SAIL) (SAIL.BO: Quote) will build four overseas steel plants with a total $12 billion investment, which will be mostly funded through debt, its chairman said on Monday.

The state-run company is also looking for a strategic investor for its proposed plants in Indonesia, Oman, Mongolia and South Africa, which would produce three million tonnes (MT) of steel each, C.S. Verma told reporters.

"Funding of $12 billion will be met through 70-80 percent of debt and the rest 20-30 percent through equity," Verma said.

Last week, the Indian government put off a planned share sale in SAIL to the next fiscal year that begins in April, citing unfavourable market conditions. [ID:nSGE71H04V]

Verma said on Monday projects may take three years to start up once agreed.

"We are talking to the government of the countries where we plan to set up steel plants and it will take about three years to start the plants from the date of signing of (memorandum of understanding) with these governments," he added.

SAIL is part of the International Coal Ventures Ltd (ICVL) consortium which has bid for a Mongolian coal mine and is looking to buy overseas coal assets in countries such as Australia, Indonesia and the United States. [ID:nSGE712058]

Other companies in the group are utility NTPC (NTPC.BO: Quote), iron ore miner NMDC (NMDC.BO: Quote), Coal India (COAL.BO: Quote) and Rashtriya Ispat Nigam Ltd.

Last month, ICVL decided not to counter Rio Tinto's $3.9 billion bid for Australian coal miner Riversdale (RIV.AX: Quote).

Verma also said coal supplies from Australia should improve as the country recovers from recent floods.

"As floods recede in Australia, coking coal supplies have improved and it will have an impact on domestic steel prices." (Reporting by Mayank Bhardwaj; editing by Malini Menon,sourced:Thomson Reuters)

Tags: Indian steel industry news, investment, steel plant

India state group submits bid for Mongolia coal asset

Thu Feb 3, 2011 8:38 am GMT
NEW DELHI(Reuters) - India's International Coal Ventures (ICVL) consortium has submitted a bid for buying a coal asset in Mongolia, an official said on Thursday, to meet rising demand for the key raw material in Asia's third-largest economy.
Ajay Mathur, nodal officer for ICVL, also told reporters the consortium was hopeful of acquiring two to three coal assets in Australia and Indonesia this year.

The state consortium comprises of utility NTPC (NTPC.BO: Quote), Steel Authority of India Ltd (SAIL.BO: Quote), iron ore miner NMDC (NMDC.BO: Quote), Coal India (COAL.BO: Quote) and Rashtriya Ispat Nigam Ltd.
Last month, it decided not to counter Rio Tinto's $3.9 billion bid for Australian coal miner Riversdale (RIV.AX: Quote). (Reporting by Ruchira Singh, sourced:Reuters)

Japan steel body: to eye Russia, Mongolia for coal

Wednesday Jan 26, 2011
TOKYO, Jan 26 (Reuters)
Japanese steelmakers will aim to diversify their procurement of coal to Russia and Mongolia but for now must keep relying on Australia for supply, the head of Japan's steel industry association said on Wednesday.
Eiji Hayashida, chairman of the Japan Iron and Steel Federation and president of JFE Steel Corp (5411.T: Quote), also said that he did not expect the current level of flooding in Australia to hurt JFE's production.
(soucred:reuters)