Indian coking coal imports in April to September 2011slip YoY

Thursday, 13 Oct 2011

BS citing experts and traders reported that coking coal imports into India dropped for the first time in last three months despite price fall in global markets as costlier dollar and an ailing steel industry demand squeezed import orders.

Data from Indian Ports Association showed that in April to September 2011 period, coking coal imports through Kolkata and Haldia was 2.83 million tonnes, down by 16% as compared with the same period in 2010. Imports at Visakhapatnam port dropped by 15.3% and at Paradip, the decline was 3.3% for the same period. These three eastern Indian ports account for almost 60% of India's coking coal import.

In April to September 2011 period, total imports declined by 0.4% YoY, after growing 2.3% in April to August 2011 period and 9.3% in April to July 2011 period.

Mr Arun Bhattoria, a Kolkata based coal trader, said that "Steel industry demand for coke has come down given the higher rates for iron ore. Some steel plants have raised steel prices while traders are importing steel, which gives better return than coking coal imports."

Mr Sandeep Jain, commodity analyst with Karvy Comtrade, said that "The main reason for coking coal import drop is the depreciation of rupee against the dollar. The rupee has weakened by almost 6% in the last month. Even though coking coal rates have gone down in dollar terms in global markets, Indian importers were unable to take the opportunity as dollar became costlier here."

Coking coal is currently priced at USD 280 per tonne, down from USD 310 a tonne in July to August 2011. The rates have come down as supply has improved from major exporter Australia after devastating flood there affected production in January.

(sourced from BS)

Sesa Goa sales in July September quarter down by 15pct

Saturday, 08 Oct 2011

Vedanta Group firm Sesa Goa reported 14.84% YoY decline in sales of iron ore to 1.55 million tonnes during the quarter ended September 30, 2011.

The company had reported sales of 1.82 million tonnes during the corresponding quarter last fiscal.

However, it managed to achieve higher sales realisation from Karnataka during the quarter, at 0.71 million tonnes, vis-a-vis 0.45 million tonnes of iron ore sales in Q2 of FY'11.

During the quarter, Sesa Goa's sales from Goa went down by 9.78% to 0.83 million tonnes from 0.92 million tonnes last year.

In addition, the company's total production of iron ore went down by over 61% during the July-September quarter to 1.12 million tonnes, largely due to the apex court ban on mining in Karnataka.

It had reported total iron ore production of 2.88 million tonnes in Q2 last fiscal.

Sesa Goa said in a statement that sales were benefited by higher volumes in Karnataka prior to the imposition of a mining ban."

Currently, the company does not produce any iron ore from Karnataka, following a ban imposed by the apex court in August on mining in the state.

(Sourced from PTI)

Sesa Goa Q3 profit up by 29pct

Tuesday, 25 Jan 2011

India’s biggest iron ore exporter Sesa Goa Ltd posted a 29% gain in third quarter profit aided by higher prices of the steelmaking raw material.

Sesa Goa group net income rose to INR 10.7 billion (USD 234 million) in the three months ended December 31 from INR 8.28 billion a year earlier. The average profit estimate of 12 analyst surveyed by Bloomberg was INR 10.4 billion. Sales climbed 22% to INR 25 billion.

Total income increased by 21.57% to stand at INR 23,768.20 million for the quarter ended December 31st 2010 where as the same was at INR 19,551.30 million for the quarter ended December 31st 2009. ( sourced:Bloomberg)

Rio Tinto iron-ore output rises to a record

By: Esmarie Swanepoel, 18th January 2011

PERTH (miningweekly.com)– Diversified mining giant Rio Tinto has set a new quarterly iron-ore production record in the fourth-quarter, with output rising 6% to 65-million tons.
Full-year iron-ore production also rose to a record of 239-million tons, of which 185-million tons was attributable to Rio.
“Running our operations at full capacity was a priority for Rio Tinto in 2010, in an environment of strong prices for most of our commodities,” said CEO Tom Albanese on Tuesday.
“Our success is clearly demonstrated in iron-ore, where we set new quarterly and annual production records.”
At its Pilbara operations, Rio produced a record 61-million tons of iron-ore in the fourth quarter and a record 224-million tons in the full year, as its mines operated at above nameplate capacity. The new Hamersley mines, Brockman 4 and Western Turner Syncline, continued to ramp up while Robe River benefited from rising production at Mesa A.
In October, Robe River reached a new milestone following the export of its one-billionth ton of iron-ore.
Fourth-quarter production of pellets and concentrate at Iron Ore Company of Canada declined by 9% on the same quarter of 2009, reflecting lower mine equipment availability and severe winter weather conditions.
Rio noted that 2010 saw a return to the normal proportions of concentrate and pellet sales in the overall sales mix as demand levels recovered.
Rio’s Australian hard coking coal output rose by 20% in 2010 to 8,97-million, with its fourth-quarter production accounting for 2,28-million tons of the year’s output.
While the December quarter’s production is an increase on that of the same period in 2009, it is 6% lower than the September quarter’s production as a result of heavy rainfall in the final month of the quarter.
Australian thermal coal production decreased by 9% to 18,4-million tons in the year, mainly owing to wet weather in the Hunter Valley.
Rio said on Tuesday that the force majeure declaration at the four Queensland coal mines remained in place.
“All the Queensland coal mines are operational but are still constrained in some way by weather impacts, including the impact on third-party infrastructure,” the miner said, adding that it was currently unable to provide an estimate of the full impact of this adverse weather or the duration of the force majeure declaration.
Fourth-quarter semi-soft coal production at 797 000 t was 20% lower than the corresponding quarter of 2009, but 70% higher than the third quarter, primarily owing to coal seam presentation in the mining sequence relative to comparable periods.
Meanwhile, Rio reported that mined and refined copper production declined by 9% and 6% respectively in the fourth quarter to 185 200 t of mined copper and 99 500 t of refined copper.
Its mined copper production for the year dropped by 16% to 678 100 t and its refined copper output fell by 5% to 392 800 t.
Rio explained that lower ore grades accounted for much of the decrease in the yearly production of copper, gold and silver in concentrates at its Kenncott Utah copper project, in the US. This was partly offset by record mill rates at the Copperton concentrator.
At the Escondida operation, in Chile, fourth-quarter contained copper mill production was 16% lower than the same quarter of 2009, primarily owing to declining grades and an eight-day conveyor shutdown at the Laguna Seca concentrator.
Increased ore hardness and lower shovel availability at the mine led to further decreases in copper concentrate production. This was partly offset by higher levels of recoverable copper in ore stacked for leaching, resulting in an overall decrease in mined copper production of 11%.
INVESTMENTS
Rio approved a further $5,5-billion in value-adding growth projects in the final quarter, including the expansion of its Pilbara iron-ore operations to 283-million tons a year and the first phase of an aluminium smelting pilot plant in Quebec using its new AP60 technology.
Total Pilbara investment approvals in 2010 were $7,2-billion, of which Rio’s share was $5,3-billion. During October, the mining giant announced that it is to invest $3,1-billion in expanding its iron-ore infrastructure capacity in the Pilbara to 283-million tons a year by the end of 2013.
In December, the miner then approved a further $1,2-billion investment to lift its yearly iron-ore production capacity in the Pilbara. The capital will be used for significant expansions at the Brockman 4 and Western Turner Syncline mines.
The third mine earmarked for expansion as part of this programme, Nammuldi, is currently under study, with an investment decision expected in 2011.
Edited by: Mariaan Webb