Monday, 20 Feb 2012
BS reported that NMDC has cut prices of fines and lumps by 20% and 3 per cent respectively in the light of fall in international prices of ore.
NMDC sources told Business Standard that the price of iron ore fines and lumps now would be around INR 2,600 and INR 5,000 a tonne.
Previously, NMDC was selling fines at INR 3,380 a tonne and lumps at INR 5,100.
(Sourced from Reuters)
Showing posts with label NMDC. Show all posts
Showing posts with label NMDC. Show all posts
Monday, February 20, 2012
Monday, January 30, 2012
NMDC unlikely to reduce ore prices
Mon, Jan 30, 2012
Hyderabad : NMDC Limited, the country's largest iron ore producer, is not in a hurry to reduce domestic ore prices in line with the drop in international prices.Even though NMDC's in-charge chairman and managing director, N K Nanda, was saying that the price drop was being examined, the company's board is unlikely to take a decision in this regard when it meets on Tuesday.
Nanda told Business Standard that the domestic prices of iron ore remained steady despite a decline in international prices. He attributed this to shortage of ore on account of ban on mining in different states and the imposition of 30 per cent import duty.In Karnataka last year, the Supreme Court allowed NMDC alone to operate its mines to the extent of providing 1 million tonnes per month to the domestic steel industry.
The order of the apex court had made it possible for the company to restart its Kumaraswamy mines also ( apart from Donamalai mines) where mining was stopped for quite some time due to Karnataka High Court order.NMDC is also getting a higher rate than its bench mark price through e-auctions. Nanda said that the price being realised through e-auctions was almost 10 per cent more than its bench mark price arrived by taking into consideration the prevailing international and domestic prices for a period of three months.
Given this scenario, NMDC is unlikely to reduce prices. NMDC sources earlierhad told Business Standard, that even if there is a drop, it would not be "much". According to them, there could be "some reduction" in the price of fines (Fe grade) but "very marginal" drop in the price of iron ore lumps which have a good demand in the domestic market.
Currently, NMDC is selling lumps at around Rs 5,000 and Fe grade ore at Rs 3,300 a tonne. On the other hand, the price of lumps in the international market is hovering around Rs 7,000 a tonne, about Rs 1,500 less than the price prevailed during the second quarter of this financial year.On the export front, the reduction international prices of ore do not have any impact on NMDC as it is not exporting any ore this year. It's agreement pertaining to the export of ore to the Japanese market has been expired and it is yet to be revived by the Union Cabinet.
NMDC accounts for 25 per cent of the total iron ore consumption in the country. In 2010-11, the Navaratna company had sold 23.75 million tonnes of ore, while the total requirement of domestic industries stood at around 100 million tonnes. (sourced BS)
Hyderabad : NMDC Limited, the country's largest iron ore producer, is not in a hurry to reduce domestic ore prices in line with the drop in international prices.Even though NMDC's in-charge chairman and managing director, N K Nanda, was saying that the price drop was being examined, the company's board is unlikely to take a decision in this regard when it meets on Tuesday.
Nanda told Business Standard that the domestic prices of iron ore remained steady despite a decline in international prices. He attributed this to shortage of ore on account of ban on mining in different states and the imposition of 30 per cent import duty.In Karnataka last year, the Supreme Court allowed NMDC alone to operate its mines to the extent of providing 1 million tonnes per month to the domestic steel industry.
The order of the apex court had made it possible for the company to restart its Kumaraswamy mines also ( apart from Donamalai mines) where mining was stopped for quite some time due to Karnataka High Court order.NMDC is also getting a higher rate than its bench mark price through e-auctions. Nanda said that the price being realised through e-auctions was almost 10 per cent more than its bench mark price arrived by taking into consideration the prevailing international and domestic prices for a period of three months.
Given this scenario, NMDC is unlikely to reduce prices. NMDC sources earlierhad told Business Standard, that even if there is a drop, it would not be "much". According to them, there could be "some reduction" in the price of fines (Fe grade) but "very marginal" drop in the price of iron ore lumps which have a good demand in the domestic market.
Currently, NMDC is selling lumps at around Rs 5,000 and Fe grade ore at Rs 3,300 a tonne. On the other hand, the price of lumps in the international market is hovering around Rs 7,000 a tonne, about Rs 1,500 less than the price prevailed during the second quarter of this financial year.On the export front, the reduction international prices of ore do not have any impact on NMDC as it is not exporting any ore this year. It's agreement pertaining to the export of ore to the Japanese market has been expired and it is yet to be revived by the Union Cabinet.
NMDC accounts for 25 per cent of the total iron ore consumption in the country. In 2010-11, the Navaratna company had sold 23.75 million tonnes of ore, while the total requirement of domestic industries stood at around 100 million tonnes. (sourced BS)
Wednesday, January 25, 2012
Iron ore steady with a chance of slipping as China out
Wednesday, 25 Jan 2012
Reuters reported that iron ore steadied with trading activity nearly halted as top market China remained shut recently for the Lunar New Year holiday blunting any impact from miner Vale decision to lift a force majeure on Brazilian shipments.
Vale, the world No 1 iron ore producer said it has resumed mining and export operations after rains eased in southeastern Brazil. Vale earlier this month declared force majeure on iron ore shipments from Brazil a legal clause that allows a company to break contractual obligations because of heavy rains that cut its output by around 2 million tonnes.
Mr Dhruv Goel managing director at iron ore trading firm SteelMint in India eastern Orissa state said there are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally.
But Mr Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday. He said that "Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade."
India biggest iron ore miner, NMDC Ltd has resumed operations in the central state of Chhattisgarh which accounts for two-thirds of its annual ouput of 25 million tonnes after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region a predominently tribal area that has roughly a fifth of India iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange main sea freight index which tracks rates to ship dry commodities fell to its lowest in more than three years on Monday.
(Sourced from Reuters)
Reuters reported that iron ore steadied with trading activity nearly halted as top market China remained shut recently for the Lunar New Year holiday blunting any impact from miner Vale decision to lift a force majeure on Brazilian shipments.
Vale, the world No 1 iron ore producer said it has resumed mining and export operations after rains eased in southeastern Brazil. Vale earlier this month declared force majeure on iron ore shipments from Brazil a legal clause that allows a company to break contractual obligations because of heavy rains that cut its output by around 2 million tonnes.
Mr Dhruv Goel managing director at iron ore trading firm SteelMint in India eastern Orissa state said there are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally.
But Mr Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday. He said that "Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade."
India biggest iron ore miner, NMDC Ltd has resumed operations in the central state of Chhattisgarh which accounts for two-thirds of its annual ouput of 25 million tonnes after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region a predominently tribal area that has roughly a fifth of India iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange main sea freight index which tracks rates to ship dry commodities fell to its lowest in more than three years on Monday.
(Sourced from Reuters)
Tuesday, January 24, 2012
Iron Ore-Steady with a chance of slipping as China out
Tue Jan 24, 2012
* Vale lifts force majeure on Brazilian shipments
* India's NMDC resumes supply from major mines
* Global steel output growth slows in 2011
SINGAPORE, Jan 24 (Reuters) - Iron ore steadied with trading activity nearly halted as top market China remained shut on Tuesday for the Lunar New Year holiday, blunting any impact from miner Vale's decision to lift a force majeure on Brazilian shipments.
Vale, the world's No. 1 iron ore producer, said on Monday it has resumed mining and export operations after rains eased in southeastern Brazil.
Vale earlier this month declared force majeure on iron ore shipments from Brazil, a legal clause that allows a company to break contractual obligations, because of heavy rains that cut its output by around 2 million tonnes.
Iron ore with 62 percent iron content .IO62-CNI=SI was unchanged at $139.80 a tonne on Monday, according to Steel Index.
There are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally, said Dhruv Goel, managing director at iron ore trading firm SteelMint in India's eastern Orissa state.
But Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday.
"Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade," he said.
India's biggest iron ore miner, NMDC Ltd, has resumed operations in the central state of Chhattisgarh, which accounts for two-thirds of its annual ouput of 25 million tonnes, after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region, a predominently tribal area that has roughly a fifth of India's iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in more than three years on Monday.
Expected slower growth in China's steel production this year could similarly curb its demand for raw material iron ore.
China's crude steel output rose 8.9 percent to around 683 million tonnes in 2011, versus a 9.3 percent clip in 2010. A Reuters poll in mid-December showed the country's steel output may reach 728 million tonnes this year, 6.5 percent higher than 2011.
Globally, steel production rose 6.8 percent to 1.527 billion tonnes in 2011, less than half the 15 percent increase in 2010, data from the World Steel Association showed on Monday.
(sourced Reuters)
* Vale lifts force majeure on Brazilian shipments
* India's NMDC resumes supply from major mines
* Global steel output growth slows in 2011
SINGAPORE, Jan 24 (Reuters) - Iron ore steadied with trading activity nearly halted as top market China remained shut on Tuesday for the Lunar New Year holiday, blunting any impact from miner Vale's decision to lift a force majeure on Brazilian shipments.
Vale, the world's No. 1 iron ore producer, said on Monday it has resumed mining and export operations after rains eased in southeastern Brazil.
Vale earlier this month declared force majeure on iron ore shipments from Brazil, a legal clause that allows a company to break contractual obligations, because of heavy rains that cut its output by around 2 million tonnes.
Iron ore with 62 percent iron content .IO62-CNI=SI was unchanged at $139.80 a tonne on Monday, according to Steel Index.
There are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally, said Dhruv Goel, managing director at iron ore trading firm SteelMint in India's eastern Orissa state.
But Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday.
"Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade," he said.
India's biggest iron ore miner, NMDC Ltd, has resumed operations in the central state of Chhattisgarh, which accounts for two-thirds of its annual ouput of 25 million tonnes, after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region, a predominently tribal area that has roughly a fifth of India's iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in more than three years on Monday.
Expected slower growth in China's steel production this year could similarly curb its demand for raw material iron ore.
China's crude steel output rose 8.9 percent to around 683 million tonnes in 2011, versus a 9.3 percent clip in 2010. A Reuters poll in mid-December showed the country's steel output may reach 728 million tonnes this year, 6.5 percent higher than 2011.
Globally, steel production rose 6.8 percent to 1.527 billion tonnes in 2011, less than half the 15 percent increase in 2010, data from the World Steel Association showed on Monday.
(sourced Reuters)
Sunday, January 8, 2012
NMDC drops acquisition plan for Tacoa coal mine in US
Sunday, 08 Jan 2012
The Indian Express reported that NMDC has dropped the takeover bid for Tacoa coal mine in the US owing to the high accident rates and adverse geological conditions there.
This development comes soon after the company dropped its bid for the Vince coal project in Russia and the Greystone iron ore mine in Brazil.
The NMDC board, after extensive deliberations on December 2, shot down the proposal to acquire the Tacoa mine for USD 90.74 million. The directors observed that legal consultants hired for due diligence have advised against the acquisition bid as the mine has definite legal issues.
In addition, the reserves do not meet the guidelines of the concerned US agencies and have not been estimated through scientific mining methodologies. The board also expressed the apprehension that NMDC is a known iron ore mining firm and has no expertise in mining coal.
The Board observed that “As per the diligence reports, several companies have previously mined coal from Tacoa’s leased property and the adjacent one. However, it was observed that each company experienced financial loss as a result of encountering adverse geological conditions, as Tacoa has, and ceased their operations.”
In view of the adverse mining conditions and high accident rates, the board expressed its objections to the takeover bid.
(sourced Indianexpress.com)
The Indian Express reported that NMDC has dropped the takeover bid for Tacoa coal mine in the US owing to the high accident rates and adverse geological conditions there.
This development comes soon after the company dropped its bid for the Vince coal project in Russia and the Greystone iron ore mine in Brazil.
The NMDC board, after extensive deliberations on December 2, shot down the proposal to acquire the Tacoa mine for USD 90.74 million. The directors observed that legal consultants hired for due diligence have advised against the acquisition bid as the mine has definite legal issues.
In addition, the reserves do not meet the guidelines of the concerned US agencies and have not been estimated through scientific mining methodologies. The board also expressed the apprehension that NMDC is a known iron ore mining firm and has no expertise in mining coal.
The Board observed that “As per the diligence reports, several companies have previously mined coal from Tacoa’s leased property and the adjacent one. However, it was observed that each company experienced financial loss as a result of encountering adverse geological conditions, as Tacoa has, and ceased their operations.”
In view of the adverse mining conditions and high accident rates, the board expressed its objections to the takeover bid.
(sourced Indianexpress.com)
Resume iron ore exports to Japan - Foreign Secretary
Sunday, 08 Jan 2012
India’s foreign secretary Mr Ranjan Mathai has sent an SOS to commerce secretary Mr Rahul Khullar suggesting that he send a team to Tokyo to promptly conclude talks on the Long Term Agreement that fixes ore prices for five years and resume exports.
In his letter, dated December 30th, Mr Mathai underlined the urgency by referring to the assurances given by Indian prime minister Dr Manmohan Singh to his Japanese counterpart Mr Yoshihiko Noda at their recent bilateral summit.
Mr Mathai said that on July 7, the cabinet had cleared the LTA’s renewal and exports by Minerals and Metals Trading Corporation.
He added that “Our iron ore exports to Japan though small has connected us historically and has been the foundation of the present day diversified and intense bilateral trade and economic relationship. The delay in finalizing the LTAs by India has been viewed with concern by the Japanese side.”
The Japanese premier raised the issue with Dr Singh on December 28 during his recent visit to India. He assured his Japanese counterpart that we will address their concern.
As per the existing LTA between NMDC and these nations which expired on March 31 last year each year the PSU supplied 2.3 million tonnes of iron ore to Japanese steel mills. This stopped in February 2011.
The steel ministry had expressed a view that the exports should not be allowed as the Comptroller and Auditor General and the Income Tax Department had raised objections. The CAG had questioned the rationale behind exporting iron ore when local demand for it was on the rise. The I T department criticised NMDC for selling at long term prices instead of spot prices and losing substantial revenues.
(sourced IndianExpress.com)
India’s foreign secretary Mr Ranjan Mathai has sent an SOS to commerce secretary Mr Rahul Khullar suggesting that he send a team to Tokyo to promptly conclude talks on the Long Term Agreement that fixes ore prices for five years and resume exports.
In his letter, dated December 30th, Mr Mathai underlined the urgency by referring to the assurances given by Indian prime minister Dr Manmohan Singh to his Japanese counterpart Mr Yoshihiko Noda at their recent bilateral summit.
Mr Mathai said that on July 7, the cabinet had cleared the LTA’s renewal and exports by Minerals and Metals Trading Corporation.
He added that “Our iron ore exports to Japan though small has connected us historically and has been the foundation of the present day diversified and intense bilateral trade and economic relationship. The delay in finalizing the LTAs by India has been viewed with concern by the Japanese side.”
The Japanese premier raised the issue with Dr Singh on December 28 during his recent visit to India. He assured his Japanese counterpart that we will address their concern.
As per the existing LTA between NMDC and these nations which expired on March 31 last year each year the PSU supplied 2.3 million tonnes of iron ore to Japanese steel mills. This stopped in February 2011.
The steel ministry had expressed a view that the exports should not be allowed as the Comptroller and Auditor General and the Income Tax Department had raised objections. The CAG had questioned the rationale behind exporting iron ore when local demand for it was on the rise. The I T department criticised NMDC for selling at long term prices instead of spot prices and losing substantial revenues.
(sourced IndianExpress.com)
Saturday, January 7, 2012
AFISCO to invest INR 375 crore for exploration at Hajigak in Afghanistan
Saturday, 07 Jan 2012
ET reported that a consortium of Indian steel companies led by Steel Authority of India Limited will invest about INR 375 crore in initial exploration for iron ore at Hajigak in Afghanistan.
The exploration will give the Indian consortium, called Afghanistan Iron & Steel Consortium, an indication of the size and grade of reserves, which were last explored in the 60s.
The outlay, which will cover exploration over two years, will be a prelude to an investment of INR 55,000 crore to develop mines, build a steel plant and create infrastructure.
A working level team from AFISCO will visit Afghanistan shortly for talks with the government on the final agreement. The Indian team will also seek the Afghan government's active role in providing road and rail infrastructure outside the mining area, in securing licensing rights and housing for project workers.
Mr CS Verma chairman of SAIL said “We will seek the Afghan government's role in providing safety and security cover to Indian personnel. Since Afghanistan is on a negative list, the security factor will weigh critically before we make any investments. It will also help when the consortium seeks funding from multilateral financial institutions.”
Mr Verma said “While road and rail links within the project area will be our responsibility, we would want the Afghan government to provide infrastructure support outside the project area up to the nearest international port.”
The consortium, which has JSW Steel, JSW Ispat, JSPL, RINL, NMDC and Monnet Ispat as the other members, will hold a separate meeting to work out the issues.
(Sourced from ET)
ET reported that a consortium of Indian steel companies led by Steel Authority of India Limited will invest about INR 375 crore in initial exploration for iron ore at Hajigak in Afghanistan.
The exploration will give the Indian consortium, called Afghanistan Iron & Steel Consortium, an indication of the size and grade of reserves, which were last explored in the 60s.
The outlay, which will cover exploration over two years, will be a prelude to an investment of INR 55,000 crore to develop mines, build a steel plant and create infrastructure.
A working level team from AFISCO will visit Afghanistan shortly for talks with the government on the final agreement. The Indian team will also seek the Afghan government's active role in providing road and rail infrastructure outside the mining area, in securing licensing rights and housing for project workers.
Mr CS Verma chairman of SAIL said “We will seek the Afghan government's role in providing safety and security cover to Indian personnel. Since Afghanistan is on a negative list, the security factor will weigh critically before we make any investments. It will also help when the consortium seeks funding from multilateral financial institutions.”
Mr Verma said “While road and rail links within the project area will be our responsibility, we would want the Afghan government to provide infrastructure support outside the project area up to the nearest international port.”
The consortium, which has JSW Steel, JSW Ispat, JSPL, RINL, NMDC and Monnet Ispat as the other members, will hold a separate meeting to work out the issues.
(Sourced from ET)
Friday, January 6, 2012
NMDC to continue iron ore exports - Report
Friday, 06 Jan 2012
The steel ministry, in a departure from its stand on iron ore exports, has agreed to begin talks with Japan and South Korea on resuming exports from NMDC’s mines.
The steel ministry was under pressure from the commerce ministry to depute a delegation to the two countries and commence talks.
Even as the Union Cabinet had decided to allow NMDC to export ore to Japan and South Korea until 2014, the steel ministry had expressed a view that the exports should not be allowed as the Comptroller and Auditor General and the Income Tax Department had raised objections.
The CAG had questioned the rationale behind exporting iron ore when local demand for it is on the rise. The IT department criticised NMDC for selling at long term prices instead of spot prices and losing substantial revenues.
The steel ministry recently sought a Cabinet review on the export directive and impressed upon the commerce ministry to examine its position on exports in a scenario where steel producers were seeking more raw material security.
The view taken by the commerce ministry prevailed when Commerce Ministry Anand Sharma met Cabinet Secretary Ajit Seth in the last week of November where it was decided to continue exporting iron ore to Japan and South Korea.
The commerce ministry feared that stopping exports would dent the revenues of MMTC, the canalising agency under its administrative control.
(sourced Indianexpress.com)
The steel ministry, in a departure from its stand on iron ore exports, has agreed to begin talks with Japan and South Korea on resuming exports from NMDC’s mines.
The steel ministry was under pressure from the commerce ministry to depute a delegation to the two countries and commence talks.
Even as the Union Cabinet had decided to allow NMDC to export ore to Japan and South Korea until 2014, the steel ministry had expressed a view that the exports should not be allowed as the Comptroller and Auditor General and the Income Tax Department had raised objections.
The CAG had questioned the rationale behind exporting iron ore when local demand for it is on the rise. The IT department criticised NMDC for selling at long term prices instead of spot prices and losing substantial revenues.
The steel ministry recently sought a Cabinet review on the export directive and impressed upon the commerce ministry to examine its position on exports in a scenario where steel producers were seeking more raw material security.
The view taken by the commerce ministry prevailed when Commerce Ministry Anand Sharma met Cabinet Secretary Ajit Seth in the last week of November where it was decided to continue exporting iron ore to Japan and South Korea.
The commerce ministry feared that stopping exports would dent the revenues of MMTC, the canalising agency under its administrative control.
(sourced Indianexpress.com)
Thursday, January 5, 2012
NMDC May Pay $300 Million for Mozambique, Russian Coal Mines
Thu, January 05, 2012
NMDC Ltd., India’s largest iron ore producer, plans to acquire two coking coal mines in Mozambique and Russia for about $300 million to feed its planned steel plants in India.
Talks are on to acquire a mine with 360 million metric tons of deposits in Mozambique’s Tete province and an 80 million-ton mine in Russia’s Kemorovo region, Chairman Narendra Kumar Nanda said today in a phone interview. The company is also considering buying an iron ore and manganese mine in Brazil’s Amapa province, he said, without elaborating.
Lack of access to local mines and rising global prices of coking coal are eroding profits at Indian steelmakers, spurring them to look for acquisitions overseas. NMDC, which has 210 billion rupees ($4 billion) of cash in hand, is building a 3 million ton steel plant in central India and a similar-sized plant jointly with Russia’s OAO Severstal in southern India.
“Considering its cash reserves, such acquisitions are like baby steps for NMDC,” said Rahul Jain, a Mumbai-based analyst with RBS Equities India Ltd. “The global slowdown has lowered asset prices and this is a time when the company should approach bigger targets.”
The shares fell as much as 1.5 percent to 169 rupees and traded at 170.05 rupees as of 12:34 p.m. in Mumbai. The stock has declined 39 percent in the past year, compared with a 21 percent drop in the benchmark Sensitive Index.
“We want to be prepared when our steel mills start operating,” said Nanda, who took charge on Jan. 1. “We can bring some coal from these mines to our plants and sell the rest for hedging purposes.”
NMDC expects to appoint advisers by the end of this month to carry out the due diligence for the assets, he said. The company recently ended acquisition talks for Greystone Mineracao do Brasil’s iron ore mine in Brazil and a coal mine in Russia, Nanda said.
NMDC said in October it signed an accord to acquire a 50 percent stake in Australia’s Legacy Iron Ore Ltd. for A$18.9 million ($19.5 million), its first acquisition overseas.
(sourced Business Week)
NMDC Ltd., India’s largest iron ore producer, plans to acquire two coking coal mines in Mozambique and Russia for about $300 million to feed its planned steel plants in India.
Talks are on to acquire a mine with 360 million metric tons of deposits in Mozambique’s Tete province and an 80 million-ton mine in Russia’s Kemorovo region, Chairman Narendra Kumar Nanda said today in a phone interview. The company is also considering buying an iron ore and manganese mine in Brazil’s Amapa province, he said, without elaborating.
Lack of access to local mines and rising global prices of coking coal are eroding profits at Indian steelmakers, spurring them to look for acquisitions overseas. NMDC, which has 210 billion rupees ($4 billion) of cash in hand, is building a 3 million ton steel plant in central India and a similar-sized plant jointly with Russia’s OAO Severstal in southern India.
“Considering its cash reserves, such acquisitions are like baby steps for NMDC,” said Rahul Jain, a Mumbai-based analyst with RBS Equities India Ltd. “The global slowdown has lowered asset prices and this is a time when the company should approach bigger targets.”
The shares fell as much as 1.5 percent to 169 rupees and traded at 170.05 rupees as of 12:34 p.m. in Mumbai. The stock has declined 39 percent in the past year, compared with a 21 percent drop in the benchmark Sensitive Index.
“We want to be prepared when our steel mills start operating,” said Nanda, who took charge on Jan. 1. “We can bring some coal from these mines to our plants and sell the rest for hedging purposes.”
NMDC expects to appoint advisers by the end of this month to carry out the due diligence for the assets, he said. The company recently ended acquisition talks for Greystone Mineracao do Brasil’s iron ore mine in Brazil and a coal mine in Russia, Nanda said.
NMDC said in October it signed an accord to acquire a 50 percent stake in Australia’s Legacy Iron Ore Ltd. for A$18.9 million ($19.5 million), its first acquisition overseas.
(sourced Business Week)
Tuesday, January 3, 2012
India iron ore exports seen plunging after tax rise
Tue Jan 3, 2012
* Exports seen at 5 mln T for Jan-March quarter
* 2011/2012 exports seen at 50 mln T vs 97 mln T pvs year
* Concerns policy volatility may hurt India's supplier image
NEW DELHI, Jan 3 (Reuters) - India's iron ore exports are likely to be 75 percent lower than previously expected in the quarter ending in March as a rise in export duties kicks in as part of the government's push to conserve supplies for domestic steelmakers.
Asia's third-largest economy announced a 50 percent jump in export duties on Monday to 30 percent, prompting traders to slash their forecasts for exports for the year to March 2012 to around 50 million tonnes from 65 million. That was already down from 97 million tonnes last year.
Given that India had exported about 45 million tonnes in the nine months to December, it is likely to ship only another 5 million tonnes in the three months to March 31, top industry body, Federation of Indian Mineral Industries, said on Tuesday.
India is one of the world's biggest exporters of iron ore, with much of it bought by China, which has the world's largest steel industry. The shortage is expected to push up global prices by 7 to 10 percent over the current $140 a tonne, traders said.
"We are shocked at the decision to hike export tax on iron ore as such volatility in policy does not promote India's image as a reliable supplier," said Glen Kalavampara, secretary of the Goa Mineral Ore Exporters' Association. Goa is India's biggest exporter of iron ore.
"Absence of supplies from India will help Australian and Brazilian suppliers to consolidate their domination of the global market."
Indian exports were already down around a third from last year primarily due to legal wrangling over stalled shipments from a key producing state and efforts to conserve supplies.
Shares in Indian exporters Sesa Goa and NMDC slid on Monday after the announcement of the tax hike but closed up on Tuesday on fund buying at lower levels.
Deutsche Bank sharply reduced its earnings estimates for Sesa Goa -- by 29 percent this fiscal year and by 24 percent for 2012/13 -- on Tuesday, factoring in the increase in iron ore export tax among other reasons.
Steel companies continued Monday's gains. Tata Steel Ltd rose 6.1 percent to 361.85 rupees. Credit Suisse upgraded the world's No. 7 steelmaker to 'neutral' from 'underperform', citing valuation comfort at current levels.
The government has shown an inclination to conserve resources, though it does not support a blanket ban on exports, largely because the domestic steel industry does not have the technology to use ore fines. India mostly ships fines to China.
New Delhi also hopes that sustained Chinese demand means buyers would be willing to pay a slightly higher price.
"We think global demand will be able to absorb a slight adjustment in prices on the upside, which leaves a bit of room for us to adjust duties," an Indian ministry official said.
GLOBAL PRICES
Chinese steel mills had been expected to replenish stockpiles before their New Year holidays, which start on Jan. 22. Chinese markets are closed on Jan. 2.
China's iron ore imports are expected to rise 6 percent to a record 720 million tonnes in 2012, according to a Reuters poll conducted in December.
India's government is trying to cut down on illegal iron ore mining and shipments but favours better tracking and monitoring along with higher taxes rather than blanket bans on exports. It last raised the export duty in February 2011.
In April, the Supreme Court overturned an export ban imposed by Karnataka's state government in July 2010, but shipments have yet to pick up because of administrative delays.
The court has itself banned mining in some parts of the state due to environmental worries and allegations of illegal mining, allowing only state-run NMDC to mine in the areas.
Such regulatory uncertainty deflates industry confidence of India being a stable supplier.
Indian exports could slump below 10 million tonnes within three years as more ore is earmarked for domestic consumption, according to David Flanagan, managing director of Australian iron ore miner Atlas Iron.
Indian ore exporters say the government policy makes little sense as domestic steelmakers can hardly use fines.
Moreover, India's steel demand is likely to grow by only 6 percent in the current fiscal year, nearly half the earlier forecast, as higher interest rates squeeze demand from the automobile and construction sectors.
"Low-grade iron ore should have been free for exports," Kalavampara said.
(sourced Reuters)
* Exports seen at 5 mln T for Jan-March quarter
* 2011/2012 exports seen at 50 mln T vs 97 mln T pvs year
* Concerns policy volatility may hurt India's supplier image
NEW DELHI, Jan 3 (Reuters) - India's iron ore exports are likely to be 75 percent lower than previously expected in the quarter ending in March as a rise in export duties kicks in as part of the government's push to conserve supplies for domestic steelmakers.
Asia's third-largest economy announced a 50 percent jump in export duties on Monday to 30 percent, prompting traders to slash their forecasts for exports for the year to March 2012 to around 50 million tonnes from 65 million. That was already down from 97 million tonnes last year.
Given that India had exported about 45 million tonnes in the nine months to December, it is likely to ship only another 5 million tonnes in the three months to March 31, top industry body, Federation of Indian Mineral Industries, said on Tuesday.
India is one of the world's biggest exporters of iron ore, with much of it bought by China, which has the world's largest steel industry. The shortage is expected to push up global prices by 7 to 10 percent over the current $140 a tonne, traders said.
"We are shocked at the decision to hike export tax on iron ore as such volatility in policy does not promote India's image as a reliable supplier," said Glen Kalavampara, secretary of the Goa Mineral Ore Exporters' Association. Goa is India's biggest exporter of iron ore.
"Absence of supplies from India will help Australian and Brazilian suppliers to consolidate their domination of the global market."
Indian exports were already down around a third from last year primarily due to legal wrangling over stalled shipments from a key producing state and efforts to conserve supplies.
Shares in Indian exporters Sesa Goa and NMDC slid on Monday after the announcement of the tax hike but closed up on Tuesday on fund buying at lower levels.
Deutsche Bank sharply reduced its earnings estimates for Sesa Goa -- by 29 percent this fiscal year and by 24 percent for 2012/13 -- on Tuesday, factoring in the increase in iron ore export tax among other reasons.
Steel companies continued Monday's gains. Tata Steel Ltd rose 6.1 percent to 361.85 rupees. Credit Suisse upgraded the world's No. 7 steelmaker to 'neutral' from 'underperform', citing valuation comfort at current levels.
The government has shown an inclination to conserve resources, though it does not support a blanket ban on exports, largely because the domestic steel industry does not have the technology to use ore fines. India mostly ships fines to China.
New Delhi also hopes that sustained Chinese demand means buyers would be willing to pay a slightly higher price.
"We think global demand will be able to absorb a slight adjustment in prices on the upside, which leaves a bit of room for us to adjust duties," an Indian ministry official said.
GLOBAL PRICES
Chinese steel mills had been expected to replenish stockpiles before their New Year holidays, which start on Jan. 22. Chinese markets are closed on Jan. 2.
China's iron ore imports are expected to rise 6 percent to a record 720 million tonnes in 2012, according to a Reuters poll conducted in December.
India's government is trying to cut down on illegal iron ore mining and shipments but favours better tracking and monitoring along with higher taxes rather than blanket bans on exports. It last raised the export duty in February 2011.
In April, the Supreme Court overturned an export ban imposed by Karnataka's state government in July 2010, but shipments have yet to pick up because of administrative delays.
The court has itself banned mining in some parts of the state due to environmental worries and allegations of illegal mining, allowing only state-run NMDC to mine in the areas.
Such regulatory uncertainty deflates industry confidence of India being a stable supplier.
Indian exports could slump below 10 million tonnes within three years as more ore is earmarked for domestic consumption, according to David Flanagan, managing director of Australian iron ore miner Atlas Iron.
Indian ore exporters say the government policy makes little sense as domestic steelmakers can hardly use fines.
Moreover, India's steel demand is likely to grow by only 6 percent in the current fiscal year, nearly half the earlier forecast, as higher interest rates squeeze demand from the automobile and construction sectors.
"Low-grade iron ore should have been free for exports," Kalavampara said.
(sourced Reuters)
Tuesday, December 27, 2011
Legacy Iron Ore to acquire 60% of Hawthorn Resources
Tuesday, December 27, 2011 sourced: Proactive Investors
Legacy Iron Ore (ASX:LCY) will acquire a 60 per cent stake in Hawthorn Resources (ASX:HAW) and so enable the Mt Bevan iron ore joint venture in Western Australia to be developed under one entity.
Investors may recall that India's NMDC, the largest iron ore producer and a Government of India owned enterprise, committed to developing Mt Bevan through Legacy. NMDC has cash reserves of A$4 billion.
Legacy and Hawthorn signed a term sheet for the deal which is expected to be finalised following an upgrade to the current inferred resource at Mt Bevan, which is likely to be announced in mid-January 2012.
Key deal points are:
- Legacy agreeing to subscribe for a placement of $5,000,000 at an issue price of $0.015 in Hawthorn, being a premium over the last ASX trade of $0.009, upon completion of the transaction.
- Hawthorn agreeing to acquire the interest currently being earned in the Mt Bevan project by Legacy, and agreeing to terminate the Joint Venture agreement, in return for scrip consideration in Hawthorn.
- Upon completion, 100% of Mt Bevan will remain in Hawthorn for development and commercialisation
- Legacy will have the right to appoint a majority of directors to the Hawthorn board
The deal is subject to the completion of satisfactory due diligence by Legacy, and obtaining the necessary regulatory and shareholder approvals.
The $5m placement into Hawthorn will be funded by Legacy, out of current cash reserves. Legacy shareholders recently approved an $18.9m placement to NMDC for 50 per cent of Legacy. Three NMDC directors have joined the Legacy board including NMDC chairman Rana Som.
Australia’s Foreign Investment Review Board (FIRB) as well as the Legacy shareholders have given their approval to the NMDC-Legacy deal.
Analysis
Clearly, this is a significant step forward for Legacy and allowing an accelerated development of Mt Bevan, as this deal paves the way for effective control of Mt Bevan to reside with Legacy. It would also have likely been a key point for NMDC to open its wallet further with project financing and access to debt funding of Mt Bevan.
In a plus for Legacy shareholders, subject to successful completion, Legacy is likely to look to an in-specie distribution of the 60% shareholding in Hawthorn back to Legacy shareholders.
Legacy and NMDC are on record as seeking to secure additional resource projects using Legacy as its investment vehicle. Sources in India told Proactive Investors that high on NMDC's list is to acquire a stake of up to 50 per cent stake in phosphate company Minemakers (ASX: MAK) and its Wonarah phosphate project. This could occur as soon as the Legacy deal is wrapped up. However, it is understood that due diligence has not yet been completed on the Wonarah project.
NMDC has put aside up to $400 million for overseas investments like Legacy and Minemakers.
Legacy Iron Ore (ASX:LCY) will acquire a 60 per cent stake in Hawthorn Resources (ASX:HAW) and so enable the Mt Bevan iron ore joint venture in Western Australia to be developed under one entity.
Investors may recall that India's NMDC, the largest iron ore producer and a Government of India owned enterprise, committed to developing Mt Bevan through Legacy. NMDC has cash reserves of A$4 billion.
Legacy and Hawthorn signed a term sheet for the deal which is expected to be finalised following an upgrade to the current inferred resource at Mt Bevan, which is likely to be announced in mid-January 2012.
Key deal points are:
- Legacy agreeing to subscribe for a placement of $5,000,000 at an issue price of $0.015 in Hawthorn, being a premium over the last ASX trade of $0.009, upon completion of the transaction.
- Hawthorn agreeing to acquire the interest currently being earned in the Mt Bevan project by Legacy, and agreeing to terminate the Joint Venture agreement, in return for scrip consideration in Hawthorn.
- Upon completion, 100% of Mt Bevan will remain in Hawthorn for development and commercialisation
- Legacy will have the right to appoint a majority of directors to the Hawthorn board
The deal is subject to the completion of satisfactory due diligence by Legacy, and obtaining the necessary regulatory and shareholder approvals.
The $5m placement into Hawthorn will be funded by Legacy, out of current cash reserves. Legacy shareholders recently approved an $18.9m placement to NMDC for 50 per cent of Legacy. Three NMDC directors have joined the Legacy board including NMDC chairman Rana Som.
Australia’s Foreign Investment Review Board (FIRB) as well as the Legacy shareholders have given their approval to the NMDC-Legacy deal.
Analysis
Clearly, this is a significant step forward for Legacy and allowing an accelerated development of Mt Bevan, as this deal paves the way for effective control of Mt Bevan to reside with Legacy. It would also have likely been a key point for NMDC to open its wallet further with project financing and access to debt funding of Mt Bevan.
In a plus for Legacy shareholders, subject to successful completion, Legacy is likely to look to an in-specie distribution of the 60% shareholding in Hawthorn back to Legacy shareholders.
Legacy and NMDC are on record as seeking to secure additional resource projects using Legacy as its investment vehicle. Sources in India told Proactive Investors that high on NMDC's list is to acquire a stake of up to 50 per cent stake in phosphate company Minemakers (ASX: MAK) and its Wonarah phosphate project. This could occur as soon as the Legacy deal is wrapped up. However, it is understood that due diligence has not yet been completed on the Wonarah project.
NMDC has put aside up to $400 million for overseas investments like Legacy and Minemakers.
Indian steel ministry seeks decision to stop NMDC iron ore
Tuesday, 27 Dec 2011
The Indian Express reported that armed with the CAG’s observations that NMDC’s iron ore exports to Japanese Steel Mills and South Korea was needless in view of growing domestic demand, the Indian steel ministry has decided to ask the union cabinet to reconsider its decision on mandating NMDC to export the mineral.
The official quoted the Chattisgarh chief minister as saying that “The chief minister said if NMDC had not exported ore to these two nations, at least 3 million tonne of additional iron ore would have been available to the state’s ore-starved sponge iron units.”
The official said that “Actually, we also have been opposing these exports from the beginning and had already conveyed our concerns to the commerce ministry, at whose behest the cabinet had okayed NMDC’s continuation of exports (till 2014). We will tell firmly that exports to these two nations are unsustainable at long term prices as it amounted to subsidizing their steel production.”
The official added that “We have decided to approach the Union Cabinet soon to re consider its decision to mandate NMDC to renew its long-term agreements with these two nations, which is bereft of any logic.”
The Comptroller and Auditor General in its recent observations to the steel ministry, had said that NMDC has been mandated to exports iron ore to Japanese steel mills and South Korea but made to overlook the domestic demand for the mineral. The CAG has questioned the mandate.
The move also comes close on the heels of the I-T department who hit out the Navratna company for losing substantial revenues by exporting to Japanese steel mills on long term prices and not through a more viable spot prices. A senior steel ministry official told The Indian Express that “The Income Tax Department has also questioned NMDC’s exports to these two countries on long term prices. It says the PSU has incurred substantial financial losses by not selling the mineral on spot prices.”
(Sourced from www.indianexpress.com)
The Indian Express reported that armed with the CAG’s observations that NMDC’s iron ore exports to Japanese Steel Mills and South Korea was needless in view of growing domestic demand, the Indian steel ministry has decided to ask the union cabinet to reconsider its decision on mandating NMDC to export the mineral.
The official quoted the Chattisgarh chief minister as saying that “The chief minister said if NMDC had not exported ore to these two nations, at least 3 million tonne of additional iron ore would have been available to the state’s ore-starved sponge iron units.”
The official said that “Actually, we also have been opposing these exports from the beginning and had already conveyed our concerns to the commerce ministry, at whose behest the cabinet had okayed NMDC’s continuation of exports (till 2014). We will tell firmly that exports to these two nations are unsustainable at long term prices as it amounted to subsidizing their steel production.”
The official added that “We have decided to approach the Union Cabinet soon to re consider its decision to mandate NMDC to renew its long-term agreements with these two nations, which is bereft of any logic.”
The Comptroller and Auditor General in its recent observations to the steel ministry, had said that NMDC has been mandated to exports iron ore to Japanese steel mills and South Korea but made to overlook the domestic demand for the mineral. The CAG has questioned the mandate.
The move also comes close on the heels of the I-T department who hit out the Navratna company for losing substantial revenues by exporting to Japanese steel mills on long term prices and not through a more viable spot prices. A senior steel ministry official told The Indian Express that “The Income Tax Department has also questioned NMDC’s exports to these two countries on long term prices. It says the PSU has incurred substantial financial losses by not selling the mineral on spot prices.”
(Sourced from www.indianexpress.com)
Tuesday, December 20, 2011
12891 cases of illegal mining in Karnataka
Tuesday, 20 Dec 2011
Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha Karnataka state government detected 12891 cases of illegal mining of minor and major minerals for the period June, 2006 till December, 2009, and for the year 2010-11, it has reported 6476 cases of illegal mining.
Details of iron ore produced illegally in Karnataka are not maintained centrally. As per the National Mineral Inventory maintained by the Indian Bureau of Mines, 34.91% of total iron ore resources in the country is found in Karnataka.
As per the directions of Apex Court, mining operations and transportation in Bellary district were suspended till further orders. On 5th August 2011, the Apex Court permitted two mines of NMDC in the Bellary district to produce iron ore to the extent of one million tones per month commencing from 6th August 2011 till further orders and mining operations have been restrained in 142 mines by Court directions on account of environmental hazard in the State of Karnataka, and 40,000 (estimated) workers have been affected by this ban. Further vide directions dated 26th August 2011, mining activities in districts of Tumkur and Chitradurga in Karnataka have also been suspended by the Supreme Court.
Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha Karnataka state government detected 12891 cases of illegal mining of minor and major minerals for the period June, 2006 till December, 2009, and for the year 2010-11, it has reported 6476 cases of illegal mining.
Details of iron ore produced illegally in Karnataka are not maintained centrally. As per the National Mineral Inventory maintained by the Indian Bureau of Mines, 34.91% of total iron ore resources in the country is found in Karnataka.
As per the directions of Apex Court, mining operations and transportation in Bellary district were suspended till further orders. On 5th August 2011, the Apex Court permitted two mines of NMDC in the Bellary district to produce iron ore to the extent of one million tones per month commencing from 6th August 2011 till further orders and mining operations have been restrained in 142 mines by Court directions on account of environmental hazard in the State of Karnataka, and 40,000 (estimated) workers have been affected by this ban. Further vide directions dated 26th August 2011, mining activities in districts of Tumkur and Chitradurga in Karnataka have also been suspended by the Supreme Court.
Monday, December 19, 2011
Exports may be canalized - Report
Monday, 19 Dec 2011
Business Standard reported that to monitor iron ore exports, a cause of illegal mining, the Indian government plans to canalise exports of the mineral.
The report quoted a senior official as saying that “The proposal will be sent to the Union Cabinet once inter ministerial discussions are completed. The ministry of mines is in discussion with the ministry of commerce and industry.”
He told BS “The basic idea is to have a single agency accountable for the illegalities that arise in the iron ore trade.”
The official said “The setting up of a canalising agency would act as a short-term solution until we put in place mechanisms to improve poor last-mile governance in mineral-rich states, the basic reason for illegal mining.”
The report added that the government is considering the recommendation on a ban on exports in the context of the export import policy.
Currently, iron ore exporting companies enter independent bilateral deals with foreign entities. If the canalising proposal comes through, big exporters such as Sesa Goa, Fomento Resources, MSPL Ltd and VM Salgaokar & Bro would be forced to execute these contracts through a government owned company such as MMTC, NMDC or State Trading Corporation.
(Sourced from BS)
Business Standard reported that to monitor iron ore exports, a cause of illegal mining, the Indian government plans to canalise exports of the mineral.
The report quoted a senior official as saying that “The proposal will be sent to the Union Cabinet once inter ministerial discussions are completed. The ministry of mines is in discussion with the ministry of commerce and industry.”
He told BS “The basic idea is to have a single agency accountable for the illegalities that arise in the iron ore trade.”
The official said “The setting up of a canalising agency would act as a short-term solution until we put in place mechanisms to improve poor last-mile governance in mineral-rich states, the basic reason for illegal mining.”
The report added that the government is considering the recommendation on a ban on exports in the context of the export import policy.
Currently, iron ore exporting companies enter independent bilateral deals with foreign entities. If the canalising proposal comes through, big exporters such as Sesa Goa, Fomento Resources, MSPL Ltd and VM Salgaokar & Bro would be forced to execute these contracts through a government owned company such as MMTC, NMDC or State Trading Corporation.
(Sourced from BS)
Friday, December 16, 2011
NMDC not to buy stake in Greystone iron ore mine in Brazil
Fri, December16, 2011
The Indian Express reported that India’s state run mineral giant National Mineral Development Corp is all set to drop its proposal to pick up 50% equity of Greystone Iron ore Limited’s mine in Brazil, as the firm’s holding company Zamin Resources is listed in the British Virgin Islands, a known tax haven.NMDC was planning to pick 50% equity in Greystone for USD 40 million to take the project to Bankable Feasibility Study stage and initiate exploration, drilling and allied activities after the equity transfer.
As per report, NMDC is exercising caution, given that the government is under pressure to unearth black money stashed in tax havens by both individuals and companies.The move comes barely a month after the company shelved a proposal to acquire the Vinci coal project in Russia as one its owners were listed in North Korea.
(sourced:Indianexpress.com)
The Indian Express reported that India’s state run mineral giant National Mineral Development Corp is all set to drop its proposal to pick up 50% equity of Greystone Iron ore Limited’s mine in Brazil, as the firm’s holding company Zamin Resources is listed in the British Virgin Islands, a known tax haven.NMDC was planning to pick 50% equity in Greystone for USD 40 million to take the project to Bankable Feasibility Study stage and initiate exploration, drilling and allied activities after the equity transfer.
As per report, NMDC is exercising caution, given that the government is under pressure to unearth black money stashed in tax havens by both individuals and companies.The move comes barely a month after the company shelved a proposal to acquire the Vinci coal project in Russia as one its owners were listed in North Korea.
(sourced:Indianexpress.com)
Tuesday, December 13, 2011
NMDC produced 25 million tonne of iron ore during 2010-11
Tuesday, 13 Dec 2011
The Indian minister of steel Mr Beni Prasad Verma said that NMDC Ltd. produced 25.15 million tonnes of iron ore during 2010-11, which is about 12% of the total estimated iron ore production of 208.11 million tonnes in the country.
In a written reply in the Lok Sabha he said, the consumption of iron ore by the domestic industries during 2010-11 was estimated at 111.4 million tonnes, whereas the total production of iron ore in the country during 2010-11 was estimated as 208.11 million tonnes.
NMDC supplied 23.75 million tonnes of iron ore during 2010-11 to domestic industries, which constitutes about 21% of estimated consumption of iron ore by the domestic industries. The remaining requirement of iron ore by the domestic industry was either sourced from captive iron ore mines or was supplied by other iron ore producers.
The minister said, Iron ore, being in deregulated sector, its supply is secured by the individual companies based on their individual requirement. However, NMDC is taking steps to increase production of iron ore by opening up new iron ore mines and expanding the capacity of existing iron ore mines.
The Indian minister of steel Mr Beni Prasad Verma said that NMDC Ltd. produced 25.15 million tonnes of iron ore during 2010-11, which is about 12% of the total estimated iron ore production of 208.11 million tonnes in the country.
In a written reply in the Lok Sabha he said, the consumption of iron ore by the domestic industries during 2010-11 was estimated at 111.4 million tonnes, whereas the total production of iron ore in the country during 2010-11 was estimated as 208.11 million tonnes.
NMDC supplied 23.75 million tonnes of iron ore during 2010-11 to domestic industries, which constitutes about 21% of estimated consumption of iron ore by the domestic industries. The remaining requirement of iron ore by the domestic industry was either sourced from captive iron ore mines or was supplied by other iron ore producers.
The minister said, Iron ore, being in deregulated sector, its supply is secured by the individual companies based on their individual requirement. However, NMDC is taking steps to increase production of iron ore by opening up new iron ore mines and expanding the capacity of existing iron ore mines.
Tuesday, November 29, 2011
Indian consortium bags 3 Hajigak iron ore blocks in Afghanistan
Tuesday, 29 Nov 2011
It is reported that Afghanistan government has offered India a new strategic role in Afghanistan by awarding mining rights for the country’s biggest iron deposit to a group of Indian state run and private companies.
Mr Karzai president of Afghanistan and his cabinet awarded three of four blocks at the Hajigak ore deposit to seven companies that bid with support from India’s government and offered the final block to Canada’s Kilo Goldmines Ltd
The Afghan Ministry of Mines announced “The Afghan Iron and Steel Consortium (AFISCO) which comprises SAIL, NMDC, Monnet Ispat & Energy, RINL, JSW Steel, Jindal Steel & Power, JSW Ispat has been awarded three blocks.”
India’s government backed the group, led by state owned Steel Authority of India Ltd Limited and NMDC Ltd, to widen the country’s strategic presence in Afghanistan, which Prime Minister Manmohan Singh has said is essential for Indian security.
Hajigak, a series of rugged mountain ridges 100 kilometers west of Kabul, holds an estimated 1.8 billion tonnes of ore and is the biggest mining project on offer in a country that the US government estimated last year holds USD 1 trillion in untapped minerals.
The Afghan government had invited bids to award development rights for four mines in Hajigak earlier this year and the last date for submission of bids was September 4.
(Sourced from Bloomberg & NDTV)
It is reported that Afghanistan government has offered India a new strategic role in Afghanistan by awarding mining rights for the country’s biggest iron deposit to a group of Indian state run and private companies.
Mr Karzai president of Afghanistan and his cabinet awarded three of four blocks at the Hajigak ore deposit to seven companies that bid with support from India’s government and offered the final block to Canada’s Kilo Goldmines Ltd
The Afghan Ministry of Mines announced “The Afghan Iron and Steel Consortium (AFISCO) which comprises SAIL, NMDC, Monnet Ispat & Energy, RINL, JSW Steel, Jindal Steel & Power, JSW Ispat has been awarded three blocks.”
India’s government backed the group, led by state owned Steel Authority of India Ltd Limited and NMDC Ltd, to widen the country’s strategic presence in Afghanistan, which Prime Minister Manmohan Singh has said is essential for Indian security.
Hajigak, a series of rugged mountain ridges 100 kilometers west of Kabul, holds an estimated 1.8 billion tonnes of ore and is the biggest mining project on offer in a country that the US government estimated last year holds USD 1 trillion in untapped minerals.
The Afghan government had invited bids to award development rights for four mines in Hajigak earlier this year and the last date for submission of bids was September 4.
(Sourced from Bloomberg & NDTV)
Sunday, November 13, 2011
NMDC and Severstal sign pact for 3 million tonnes steel plant
Sunday, 13 Nov 2011
BL reported that India’s largest iron ore miner NMDC and Russian steel maker Severstal signed the Implementation Protocol in Moscow for setting up a joint venture steel plant in Karnataka.
A high level delegation from India, comprising the Minister of Steel, Mr Beni Prasad Verma, the secretary of steel, Mr PK Misra and NMDC’s CMD, Mr Rana Som, apart from other senior officials, visited Moscow to take the project forward.
The protocol defines the target initial plant capacity which would be 3 million tonnes of finished steel. It also confirms the intention of NMDC and Severstal to fully meet the joint venture’s captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.
Until the captive assets are fully developed, NMDC and Severstal would take up the responsibilities to supply iron ore and coking coal to the joint venture from their existing assets or alternative sources.
Mr Alexey Mordashov CEO of Severstal said that “Our joint venture project in India with NMDC provides a good fit with Severstal’s vertically integrated, growth-focused business model”.
Mr PK Misra said that “The joint venture between Severstal and NMDC will be another milestone in India Russia economic cooperation and will be an important investment for the Indian Steel industry.
(Sourced from BL)
BL reported that India’s largest iron ore miner NMDC and Russian steel maker Severstal signed the Implementation Protocol in Moscow for setting up a joint venture steel plant in Karnataka.
A high level delegation from India, comprising the Minister of Steel, Mr Beni Prasad Verma, the secretary of steel, Mr PK Misra and NMDC’s CMD, Mr Rana Som, apart from other senior officials, visited Moscow to take the project forward.
The protocol defines the target initial plant capacity which would be 3 million tonnes of finished steel. It also confirms the intention of NMDC and Severstal to fully meet the joint venture’s captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.
Until the captive assets are fully developed, NMDC and Severstal would take up the responsibilities to supply iron ore and coking coal to the joint venture from their existing assets or alternative sources.
Mr Alexey Mordashov CEO of Severstal said that “Our joint venture project in India with NMDC provides a good fit with Severstal’s vertically integrated, growth-focused business model”.
Mr PK Misra said that “The joint venture between Severstal and NMDC will be another milestone in India Russia economic cooperation and will be an important investment for the Indian Steel industry.
(Sourced from BL)
Steelmakers cold to e-auction of iron ore
November13, 2011
The e-auction of iron ore this month in Karnataka has received a lukewarm response from steel manufacturers, thanks to the high price of ore on offer.
National Mineral Development Corporation, the only miner operating in the state after a Supreme Court verdict in August, had pegged the price of high-grade iron ore at Rs 2,600-4,000 per tonne. The result: only 12.4 lakh tonnes of ore was auctioned last week against the targeted 23.2 lakh tonnes.
More than 40 companies are believed to be in the fray for the NMDC e-auctioned iron ore.
“The quality of ore being offered though the e-auction route is not of the desired level,” Srinivasa Rao, secretary, Karnataka Iron and Steel Manufacturers Association told HT.
The government, however, denied that ore was being sold at a higher price and was confident that it would find takers by the end of this month.
“Our target this month is to auction 75 lakh tonnes and I am sure we will achieve that,” said HR Srinivasa, director, department of mines, Karnataka.
(sourced Hindustan Times)
The e-auction of iron ore this month in Karnataka has received a lukewarm response from steel manufacturers, thanks to the high price of ore on offer.
National Mineral Development Corporation, the only miner operating in the state after a Supreme Court verdict in August, had pegged the price of high-grade iron ore at Rs 2,600-4,000 per tonne. The result: only 12.4 lakh tonnes of ore was auctioned last week against the targeted 23.2 lakh tonnes.
More than 40 companies are believed to be in the fray for the NMDC e-auctioned iron ore.
“The quality of ore being offered though the e-auction route is not of the desired level,” Srinivasa Rao, secretary, Karnataka Iron and Steel Manufacturers Association told HT.
The government, however, denied that ore was being sold at a higher price and was confident that it would find takers by the end of this month.
“Our target this month is to auction 75 lakh tonnes and I am sure we will achieve that,” said HR Srinivasa, director, department of mines, Karnataka.
(sourced Hindustan Times)
Friday, November 11, 2011
Notification delay may pull NMDC iron ore exports - Report
Friday, 11 Nov 2011
State owned NMDC’s exports of iron ore may fall by over 61% to less than 1 million tonnes this year from 2.6 million tonnes last year.
A senior official of NMDC has said the drop in exports will not impact the financial of the company, as domestic demand and prices are encouraging.
The plunge in exports is primarily due to the delay in issuance of a notification by the government permitting overseas shipment of the mineral resource even after Cabinet approval.
The official said that “Even if we get approval from the government this month or next month, we will consider exports on a pro rata basis.
The official told PTI that “If we start exports in January, we may export around 0.6 or 0.7 million tonnes this year. We may not touch the 1 million tonnes mark.”
Its total exports of iron ore amounted to 2.56 million tonnes during FY’11, as against 3.43 million tonnes in the previous financial year, a decrease of 25%
(Sourced from PTI)
State owned NMDC’s exports of iron ore may fall by over 61% to less than 1 million tonnes this year from 2.6 million tonnes last year.
A senior official of NMDC has said the drop in exports will not impact the financial of the company, as domestic demand and prices are encouraging.
The plunge in exports is primarily due to the delay in issuance of a notification by the government permitting overseas shipment of the mineral resource even after Cabinet approval.
The official said that “Even if we get approval from the government this month or next month, we will consider exports on a pro rata basis.
The official told PTI that “If we start exports in January, we may export around 0.6 or 0.7 million tonnes this year. We may not touch the 1 million tonnes mark.”
Its total exports of iron ore amounted to 2.56 million tonnes during FY’11, as against 3.43 million tonnes in the previous financial year, a decrease of 25%
(Sourced from PTI)
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