Sunday, 13 Feb 2011
It is reported that Nucor Corporation has raised prices for some of its products amid demand gains and increasing raw material costs.
Charlotte North Carolina based Nucor boosted prices for plate steel for March delivery by a minimum of USD 80 a tonne.
Nucor said that plate steel sold by contract was increased by USD 65 a tonne. AK Steel Holding Corporation, the fourth biggest US based steelmaker by 2010 sales, said it is raising prices for new orders of flat rolled carbon steel products by USD 50 a tonne.
Mr Patrick McFadden a Nucor spokesman said that Nucor sees rising raw materials and incremental demand. He added that "Some level of demand occurred to allow for the increases to be implemented."
US steelmakers have raised prices and brought more production back on line as they recovered from the plunge in demand following the 2008-09 recession.
(sourced:bloomberg)
Showing posts with label Sunday Feb13 2011. Show all posts
Showing posts with label Sunday Feb13 2011. Show all posts
Sunday, February 13, 2011
Ukraine issues January 2011 iron ore import and export data
Sunday, 13 Feb 2011
According to the Ukrainian Association of Ore-dressing Enterprises, in January 2011 Ukrainian mining companies' iron ore exports rose by 2.1%YoY year to 2.7 million tonnes while Ukrainian steelmakers' imports of iron ore fell by 73.8%YoY to 75,100 tonnes following the integration of Ilyich Iron and Steel Works into the Ukrainian leading mining and steel producing group Metinvest.
In particular, in January 2011, Ukraine exports of iron ore concentrate decreased by 10.5%YoY to 1 million tonnes, its exports of pellets went up by 22.3% to 1 million tonnes while its exports of sintered ore climbed by 28% to 682,000 tonnes. In addition, in the first month of this year Ukraine also shipped 18,000 tonnes of agglomerate for export down by 90%YoY. Ukraine main exporter of iron ore is Ferrexpo Poltava Mining.
On the other hand in January 2011, Ukraine steel producers imported just 700 tonnes of iron ore concentrate down by 99.6%YoY and 74,400 tonnes of sintered ore up by 6.3%YoY. Meanwhile, Ukrainian steelmakers did not import any agglomerate and pellets in January 2011.
In January 2011, of Ukraine major steel producers, iron ore was imported just by ISD subsidiaries Dneprovsky Iron and Steel Works named after F. Dzerzhinsky and Alchevsk Iron and Steel Works as well as by Ilyich Iron and Steel Works of Mariupol which following integration with Metinvest imported just 700 tonnes of iron ore concentrate down from 231,000 tonnes of iron ore in the same month last year.
Zaporizhstal and Dnepropetrovsk Iron and Steel Works named after Petrovsky which were previously among Ukraine most important iron ore importers did not import any iron ore in the first month of the current year.
(sourced:SteelOrbis)
According to the Ukrainian Association of Ore-dressing Enterprises, in January 2011 Ukrainian mining companies' iron ore exports rose by 2.1%YoY year to 2.7 million tonnes while Ukrainian steelmakers' imports of iron ore fell by 73.8%YoY to 75,100 tonnes following the integration of Ilyich Iron and Steel Works into the Ukrainian leading mining and steel producing group Metinvest.
In particular, in January 2011, Ukraine exports of iron ore concentrate decreased by 10.5%YoY to 1 million tonnes, its exports of pellets went up by 22.3% to 1 million tonnes while its exports of sintered ore climbed by 28% to 682,000 tonnes. In addition, in the first month of this year Ukraine also shipped 18,000 tonnes of agglomerate for export down by 90%YoY. Ukraine main exporter of iron ore is Ferrexpo Poltava Mining.
On the other hand in January 2011, Ukraine steel producers imported just 700 tonnes of iron ore concentrate down by 99.6%YoY and 74,400 tonnes of sintered ore up by 6.3%YoY. Meanwhile, Ukrainian steelmakers did not import any agglomerate and pellets in January 2011.
In January 2011, of Ukraine major steel producers, iron ore was imported just by ISD subsidiaries Dneprovsky Iron and Steel Works named after F. Dzerzhinsky and Alchevsk Iron and Steel Works as well as by Ilyich Iron and Steel Works of Mariupol which following integration with Metinvest imported just 700 tonnes of iron ore concentrate down from 231,000 tonnes of iron ore in the same month last year.
Zaporizhstal and Dnepropetrovsk Iron and Steel Works named after Petrovsky which were previously among Ukraine most important iron ore importers did not import any iron ore in the first month of the current year.
(sourced:SteelOrbis)
Sundance to build a railway line and port for Mbalam iron ore export venture
Sunday, 13 Feb 2011
Reuters reported that Australia's Sundance Resources wants Chinese companies to build a railway line and port in Cameroon vital to its Mbalam iron ore export venture.
Mr Giulio Casello MD at Sundance Resources said that the project is also expected to cost more than the USD 3.4 billion initially thought.
He said that agreements had been signed with China Rail and China Harbour to build 490 kilometers of rail line linking two mines in the Mbalam area to a port on the Cameroon coast capable of handling 35 million tonnes of ore a year for a decade.
He added that the initial capital costs were pegged at USD 3.4 billion but the figure was likely to increase due to the addition of the Nabeba mine in Congo Brazzaville.
The Nabeda mine would need 60 kilometers of railway line and a crushing and sorting facility, he said.
Mbalam, Sundance's main project, is among a handful of big iron ore developments in west and central Africa and is seen as a cornerstone of Cameroon's effort to diversify its largely oil dependent economy into mining.
(sourced:reuters)
Reuters reported that Australia's Sundance Resources wants Chinese companies to build a railway line and port in Cameroon vital to its Mbalam iron ore export venture.
Mr Giulio Casello MD at Sundance Resources said that the project is also expected to cost more than the USD 3.4 billion initially thought.
He said that agreements had been signed with China Rail and China Harbour to build 490 kilometers of rail line linking two mines in the Mbalam area to a port on the Cameroon coast capable of handling 35 million tonnes of ore a year for a decade.
He added that the initial capital costs were pegged at USD 3.4 billion but the figure was likely to increase due to the addition of the Nabeba mine in Congo Brazzaville.
The Nabeda mine would need 60 kilometers of railway line and a crushing and sorting facility, he said.
Mbalam, Sundance's main project, is among a handful of big iron ore developments in west and central Africa and is seen as a cornerstone of Cameroon's effort to diversify its largely oil dependent economy into mining.
(sourced:reuters)
FIA unveils duty free steel raw materials imports scam in Pakistan
Sunday, 13 Feb 2011
The Express Tribune reported that investigators probing corruption in Pakistan Steel Mills have unearthed a scam involving more than a dozen companies that caused a revenue loss of PKR 50 billion to the national kitty and PKR 100 billion to the cash strapped mill
As per report, Federal Investigation Agency officials disclosed that “In 2006, the Shaukat Aziz government issued SRO 565, allowing two private companies to import raw materials for manufacturing steel products at 0% customs duty. However in 2007, the scope of the concession was extended and a dozen more companies were permitted to import duty free raw materials.”
According to the SRO, the raw material importing companies must install their own manufacturing units, they should change the form of raw material by making value addition so that it does not look similar to the raw material of PSM and they could not sell the raw material in local markets or manufacturers.
However, sources said these companies did not meet the conditions as they neither installed any manufacturing unit nor made value addition. Contrary to the obligation, they also sold the raw material in local markets.
From 2007 to 2010, these companies imported an estimated 5 million tons of raw material, as trillions of rupees worth of foreign exchange flew out of the country and billions of rupees in revenues were lost in customs duty exemption.
The FIA also found that the companies made fake transportation documents by falsely declaring they had installed manufacturing units in different parts of the country. Instead, they sold the raw material to local companies. As a result, sales of PSM decreased considerably, causing a loss of around PKR 100 billion from 2007 to 2010.
Many transportation companies were also part of the scam as they helped the steel dealers in preparing fake documents of raw material supply, sources said.
FIA Director Sindh Moazzam Jah Ansari, while talking to The Express Tribune, pointed out the scam was one of the main reasons that brought PSM down.
He said “It is one of the biggest scams in the country and all cases are being investigated. We issued notices to customs authorities, seeking details of import of steel raw material under zero customs duty but have not received any response despite a passage of two months.”
He said FIA has not been able to take action against customs officials, who say it is very difficult to retrieve data of three years.
Mr Ansari said letters were also sent to the companies involved in the scam, who were asked to provide details of last three years utility bills, income tax receipts, sale and purchase and installation of manufacturing units, but no response was received in that case either.
A PSM spokesman told The Express Tribune that the SRO caused losses to the steel mill, adding that the mill had demanded government’s standing committee to withdraw the order. The committee will raise the issue in the National Assembly.
PSM Marketing Consultant Mr Sajjad Hussain said the mill has already filed an application in the Federal Board of Revenue, seeking cancellation of the SRO and PSM has suffered losses of over PKR 100 billion due to the order.
(sourced:TheExpressTribune)
The Express Tribune reported that investigators probing corruption in Pakistan Steel Mills have unearthed a scam involving more than a dozen companies that caused a revenue loss of PKR 50 billion to the national kitty and PKR 100 billion to the cash strapped mill
As per report, Federal Investigation Agency officials disclosed that “In 2006, the Shaukat Aziz government issued SRO 565, allowing two private companies to import raw materials for manufacturing steel products at 0% customs duty. However in 2007, the scope of the concession was extended and a dozen more companies were permitted to import duty free raw materials.”
According to the SRO, the raw material importing companies must install their own manufacturing units, they should change the form of raw material by making value addition so that it does not look similar to the raw material of PSM and they could not sell the raw material in local markets or manufacturers.
However, sources said these companies did not meet the conditions as they neither installed any manufacturing unit nor made value addition. Contrary to the obligation, they also sold the raw material in local markets.
From 2007 to 2010, these companies imported an estimated 5 million tons of raw material, as trillions of rupees worth of foreign exchange flew out of the country and billions of rupees in revenues were lost in customs duty exemption.
The FIA also found that the companies made fake transportation documents by falsely declaring they had installed manufacturing units in different parts of the country. Instead, they sold the raw material to local companies. As a result, sales of PSM decreased considerably, causing a loss of around PKR 100 billion from 2007 to 2010.
Many transportation companies were also part of the scam as they helped the steel dealers in preparing fake documents of raw material supply, sources said.
FIA Director Sindh Moazzam Jah Ansari, while talking to The Express Tribune, pointed out the scam was one of the main reasons that brought PSM down.
He said “It is one of the biggest scams in the country and all cases are being investigated. We issued notices to customs authorities, seeking details of import of steel raw material under zero customs duty but have not received any response despite a passage of two months.”
He said FIA has not been able to take action against customs officials, who say it is very difficult to retrieve data of three years.
Mr Ansari said letters were also sent to the companies involved in the scam, who were asked to provide details of last three years utility bills, income tax receipts, sale and purchase and installation of manufacturing units, but no response was received in that case either.
A PSM spokesman told The Express Tribune that the SRO caused losses to the steel mill, adding that the mill had demanded government’s standing committee to withdraw the order. The committee will raise the issue in the National Assembly.
PSM Marketing Consultant Mr Sajjad Hussain said the mill has already filed an application in the Federal Board of Revenue, seeking cancellation of the SRO and PSM has suffered losses of over PKR 100 billion due to the order.
(sourced:TheExpressTribune)
ArcelorMittal SA to resolve steel supply delay soon - Report
Sunday, 13 Feb 2011
Bloomberg reported that ArcelorMittal South Africa Limited said that delays in supply caused by the shutdown of its Newcastle blast furnace will be resolved within the next two months.
ArcelorMittal SA said that the furnace, which developed cold conditions in early December 2010, was restarted in January 2011 and is currently operating at capacity.
It added that "We are in the process of working closely with customers to address the urgent supply issues and we are hopeful of being back to normal supply levels for domestic demand in the next two months."
ArcelorMittal South Africa posted a fourth quarter loss excluding one time items of ZAR 495 million as compared with a profit of ZAR 469 million a year earlier. The company returned to profit over the full year.
(Sourced:bloomberg.net)
Bloomberg reported that ArcelorMittal South Africa Limited said that delays in supply caused by the shutdown of its Newcastle blast furnace will be resolved within the next two months.
ArcelorMittal SA said that the furnace, which developed cold conditions in early December 2010, was restarted in January 2011 and is currently operating at capacity.
It added that "We are in the process of working closely with customers to address the urgent supply issues and we are hopeful of being back to normal supply levels for domestic demand in the next two months."
ArcelorMittal South Africa posted a fourth quarter loss excluding one time items of ZAR 495 million as compared with a profit of ZAR 469 million a year earlier. The company returned to profit over the full year.
(Sourced:bloomberg.net)
Sourth Africa faces delay threat to projects over shortage of steel rebar
Sunday, 13 Feb 2011
It is reported that large building and construction projects in South Africa could grind to a halt within weeks because of a shortage of rebar. The shortage was caused by a breakdown last month of ArcelorMittal’s main furnace in Newcastle in KwaZulu Natal.
The South African Reinforced Concrete Engineers Association said that the breakdown meant there would not be any rebar available this month, possibly halting building and construction projects in SA, and resulting in delays and additional costs. This comes at a time when the construction industry is reeling from the effects of the global economic recession and the spending hangover after last year’s Soccer World Cup. While there was huge state investment in fixed capital last year, the government has been slow since then to issue new tenders and tardy in paying for work done. The private sector is complaining bitterly.
The association said that the shortage had been made worse by the closure last year of the unprofitable reinforcing steel rolling mill, Cape Town Iron & Steel Works, which had been a large supplier of the steel.
Mr Rod Mountford director of the association said in a statement that "Members of the association are reporting serious shortages of rebar and mesh rod, which has been totally unforeseen and beyond their control."
Mr Mountford said that "The imported product is more expensive than locally sourced reinforcement. Individual importers of rebar will also have to ensure that the quality of the steel complies with South African standards and specifications. Steel mills have already been notified there are price increases due this month and in March 2011."
SA's two remaining suppliers Scaw Metals and the Davsteel division of Cape Gate, were unable to provide construction firms with their required volumes, leaving a two to three month lead time for imported rebar. (sourced:businessday.co.za)
It is reported that large building and construction projects in South Africa could grind to a halt within weeks because of a shortage of rebar. The shortage was caused by a breakdown last month of ArcelorMittal’s main furnace in Newcastle in KwaZulu Natal.
The South African Reinforced Concrete Engineers Association said that the breakdown meant there would not be any rebar available this month, possibly halting building and construction projects in SA, and resulting in delays and additional costs. This comes at a time when the construction industry is reeling from the effects of the global economic recession and the spending hangover after last year’s Soccer World Cup. While there was huge state investment in fixed capital last year, the government has been slow since then to issue new tenders and tardy in paying for work done. The private sector is complaining bitterly.
The association said that the shortage had been made worse by the closure last year of the unprofitable reinforcing steel rolling mill, Cape Town Iron & Steel Works, which had been a large supplier of the steel.
Mr Rod Mountford director of the association said in a statement that "Members of the association are reporting serious shortages of rebar and mesh rod, which has been totally unforeseen and beyond their control."
Mr Mountford said that "The imported product is more expensive than locally sourced reinforcement. Individual importers of rebar will also have to ensure that the quality of the steel complies with South African standards and specifications. Steel mills have already been notified there are price increases due this month and in March 2011."
SA's two remaining suppliers Scaw Metals and the Davsteel division of Cape Gate, were unable to provide construction firms with their required volumes, leaving a two to three month lead time for imported rebar. (sourced:businessday.co.za)
Round the clock customs clearance now at 8 ports
Sunday, 13 Feb 2011
The Indian government announced a slew of measures, including round the clock customs clearance at eight ports in the country, with the aim of bringing down transaction costs on exports by INR 2100 crore.
The minister of state for commerce and industry, Mr Jyotiraditya Scindia said that "It is expected that implementation of the 23 issues is likely to mitigate transaction costs by approximately INR 2100 crore.”
The government expects that a permanent reduction in transaction costs through these initiatives will have a long term positive impact on the competitiveness of the country's exports.
Indian finance minister Mr Pranab Mukherjee, while releasing the report of a 'Task Force on Transaction Cost in Exports', said that “Reducing transaction costs should be an ongoing task.”
In India, transaction cost for exporters is around 7% to 8% of the total value of the cargo. This is among the highest in the world.
(Sourced from BL)
The Indian government announced a slew of measures, including round the clock customs clearance at eight ports in the country, with the aim of bringing down transaction costs on exports by INR 2100 crore.
The minister of state for commerce and industry, Mr Jyotiraditya Scindia said that "It is expected that implementation of the 23 issues is likely to mitigate transaction costs by approximately INR 2100 crore.”
The government expects that a permanent reduction in transaction costs through these initiatives will have a long term positive impact on the competitiveness of the country's exports.
Indian finance minister Mr Pranab Mukherjee, while releasing the report of a 'Task Force on Transaction Cost in Exports', said that “Reducing transaction costs should be an ongoing task.”
In India, transaction cost for exporters is around 7% to 8% of the total value of the cargo. This is among the highest in the world.
(Sourced from BL)
Shanxi Lvliang 10 million tonnes steel base project takes off
Sunday, 13 Feb 2011
Shanxi Daily quoted provincial Economic and Information Commission saying that Lvliang, a city sited in central Shanxi Province, is planning to build a 10 million tonne steel base before 2013 through consolidation and regrouping of local steel mills.
Two steps are set to build the base.
The first step is to unite Shanxi Zhongyang Iron & Steel Co Ltd and Wenshui Haiwei Steel Co Ltd, the two major steel mills of the city into a group named Lvliang Iron & Steel Group.
And afterwards, the group will act as the main body to consolidate the other local steel mills as well as upstream and downstream related enterprises through acquisition or equity exchange with a view to forging an integrated 10 million tonne steel base.
The base, once set up will be injected effort to improve its overall equipment standard through elimination of backward capacity and aimed at arriving at advanced level in China by 2015 making a real resource economical, environment-friendly, science and technology-oriented distinctive steel base.
(Sourced from Shanxi Daily)
Shanxi Daily quoted provincial Economic and Information Commission saying that Lvliang, a city sited in central Shanxi Province, is planning to build a 10 million tonne steel base before 2013 through consolidation and regrouping of local steel mills.
Two steps are set to build the base.
The first step is to unite Shanxi Zhongyang Iron & Steel Co Ltd and Wenshui Haiwei Steel Co Ltd, the two major steel mills of the city into a group named Lvliang Iron & Steel Group.
And afterwards, the group will act as the main body to consolidate the other local steel mills as well as upstream and downstream related enterprises through acquisition or equity exchange with a view to forging an integrated 10 million tonne steel base.
The base, once set up will be injected effort to improve its overall equipment standard through elimination of backward capacity and aimed at arriving at advanced level in China by 2015 making a real resource economical, environment-friendly, science and technology-oriented distinctive steel base.
(Sourced from Shanxi Daily)
BHP Billiton to post $15bn British record earnings
By Louise Armitstead
13 Feb 2011, 11:55AM GMT
BHP Billiton is set to reveal earnings of more than $15bn (£9.4bn) this week – putting the resources company on track to generate among the biggest ever profits by a UK company in a single year.
The Anglo-Australian miner is expected to reveal the benefits of the commodities boom at its half-year results on Wednesday and confirm that it is likely to make pre-tax profits of more than $30bn at its full-year results in June.
The expected total, which is more than a third bigger than BHP's pre-tax profits of $19.6bn for the full year in 2009, would beat the previous highest total held by Royal Dutch Shell.
The oil major, which has broken the record for the biggest profits in Britain in the past, unveiled pre-tax profits of $28.8bn for 2010 two weeks ago. Three year's ago when Shell unveiled profits of $27.5bn, Tony Woodley of Unite, Britain's biggest union, described the margins as "obscene".
BHP is expected to announce that it will return billions of dollars of its profits back to shareholders. The money is likely to include a significant rise in the dividend payments and a share buy-back of as much as $10bn.
The company has been under pressure from institutional investors in recent months who have been calling for a significant return of capital.
The shareholders have been concerned that Marius Kloppers, the chief executive of BHP, has ambitions to make a significant acquisition instead. In November BHP announced a buy-back of $4.3bn in the London-listed stock. Analysts expect the bulk of future buy-backs to be in Australian shares. A tax-credit associated with Australian stock offers is a more efficient way of returning capital than other options, such as a special dividend, the analysts said.
BHP is also likely to explain plans for significant investment in its businesses around the world. Analysts said capital expenditure in the future could be more than $15bn.
The investments will be in developing mines around the world which are experiencing high-demand, particularly from emerging markets.
For example, demand from China has fuelled a soaring commodities boom which has sparked record profits across the resources sector.
Last week BHP's rival, Rio Tinto, posted a 161pc increase in 2010 profits to $14bn and more than doubled its dividend.
Rising commodity prices - particularly iron ore - produced a record cash flow from the group's operations, which rose 70pc to $23.5bn. The company said cash flowing from Rio's operations was equal to $64m a day – that's $1m every 23 minutes.
The company unveiled a $5bn share buyback. However the mining giant's shares fell on the day because investors had expected even more.
On Tuesday, Xstrata reported pre-tax profits of $6.61bn - up from $1.53bn in 2009. The company said its net operating cash flow had doubled from 2009 to $8.2bn.
The companies announced that they plan to invest significant amounts in the business - Rio plans to spend $13bn on new mines this year alone. Mick Davis's Xstrata has a $23bn budget for investing in new mines.
However, there are concerns that the boom behind the profits is not sustainable. There have been investor worries over a slowdown in China hitting mining companies after the country's central bank raised interest rates for a third time in fourth months this week. (sourced:telegraph.co.uk)
13 Feb 2011, 11:55AM GMT
BHP Billiton is set to reveal earnings of more than $15bn (£9.4bn) this week – putting the resources company on track to generate among the biggest ever profits by a UK company in a single year.
The Anglo-Australian miner is expected to reveal the benefits of the commodities boom at its half-year results on Wednesday and confirm that it is likely to make pre-tax profits of more than $30bn at its full-year results in June.
The expected total, which is more than a third bigger than BHP's pre-tax profits of $19.6bn for the full year in 2009, would beat the previous highest total held by Royal Dutch Shell.
The oil major, which has broken the record for the biggest profits in Britain in the past, unveiled pre-tax profits of $28.8bn for 2010 two weeks ago. Three year's ago when Shell unveiled profits of $27.5bn, Tony Woodley of Unite, Britain's biggest union, described the margins as "obscene".
BHP is expected to announce that it will return billions of dollars of its profits back to shareholders. The money is likely to include a significant rise in the dividend payments and a share buy-back of as much as $10bn.
The company has been under pressure from institutional investors in recent months who have been calling for a significant return of capital.
The shareholders have been concerned that Marius Kloppers, the chief executive of BHP, has ambitions to make a significant acquisition instead. In November BHP announced a buy-back of $4.3bn in the London-listed stock. Analysts expect the bulk of future buy-backs to be in Australian shares. A tax-credit associated with Australian stock offers is a more efficient way of returning capital than other options, such as a special dividend, the analysts said.
BHP is also likely to explain plans for significant investment in its businesses around the world. Analysts said capital expenditure in the future could be more than $15bn.
The investments will be in developing mines around the world which are experiencing high-demand, particularly from emerging markets.
For example, demand from China has fuelled a soaring commodities boom which has sparked record profits across the resources sector.
Last week BHP's rival, Rio Tinto, posted a 161pc increase in 2010 profits to $14bn and more than doubled its dividend.
Rising commodity prices - particularly iron ore - produced a record cash flow from the group's operations, which rose 70pc to $23.5bn. The company said cash flowing from Rio's operations was equal to $64m a day – that's $1m every 23 minutes.
The company unveiled a $5bn share buyback. However the mining giant's shares fell on the day because investors had expected even more.
On Tuesday, Xstrata reported pre-tax profits of $6.61bn - up from $1.53bn in 2009. The company said its net operating cash flow had doubled from 2009 to $8.2bn.
The companies announced that they plan to invest significant amounts in the business - Rio plans to spend $13bn on new mines this year alone. Mick Davis's Xstrata has a $23bn budget for investing in new mines.
However, there are concerns that the boom behind the profits is not sustainable. There have been investor worries over a slowdown in China hitting mining companies after the country's central bank raised interest rates for a third time in fourth months this week. (sourced:telegraph.co.uk)
Colombia coal output up to 74.35 mln T in '2010
Sunday, 13 February 2011
Colombia coal production and exports rose 2 percent in 2010 from the previous year but missed government targets, the mining regulator said.Heavy rains and floods hit the world's No. 5 coal exporter last year that hurt production at high-quality thermal coal mines in the northeast at a time when global supplies were tight due to problems in many major exporters.
The Ingeominas regulator said output was 74.35 million tonnes, nearly 6 million tonnes below the government's target last year, but up from 72.8 million tonnes in 2009.Exports rose to 68.14 million tonnes from 66.75 million tonnes in 2009, it said in projections based on royalty payments.Coal exporters in Colombia are still trying to catch up on delayed shipments after rains last year, caused by the La Nina weather phenomenon, which has also done billions of dollars in damages in the country.Colombia's coal industry is dominated by big thermal producers with their own port and rail facilities such as Glencore, Drummond and Cerrejon, which is owned equally by BHP Billiton, Anglo American and Xstrata.Supply disruptions in key exporting countries such as Australia have boosted coal prices. Sharp spikes and falls in the past two months are expected to continue this year although the general trend is for a strengthening market overall.The forecasts for average 2011 coal prices given by 22 analysts and industry players polled by Reuters were $30-37 a tonne higher than predictions given in January last year but only slightly higher than current values.
(source: Reuters)
Colombia coal production and exports rose 2 percent in 2010 from the previous year but missed government targets, the mining regulator said.Heavy rains and floods hit the world's No. 5 coal exporter last year that hurt production at high-quality thermal coal mines in the northeast at a time when global supplies were tight due to problems in many major exporters.
The Ingeominas regulator said output was 74.35 million tonnes, nearly 6 million tonnes below the government's target last year, but up from 72.8 million tonnes in 2009.Exports rose to 68.14 million tonnes from 66.75 million tonnes in 2009, it said in projections based on royalty payments.Coal exporters in Colombia are still trying to catch up on delayed shipments after rains last year, caused by the La Nina weather phenomenon, which has also done billions of dollars in damages in the country.Colombia's coal industry is dominated by big thermal producers with their own port and rail facilities such as Glencore, Drummond and Cerrejon, which is owned equally by BHP Billiton, Anglo American and Xstrata.Supply disruptions in key exporting countries such as Australia have boosted coal prices. Sharp spikes and falls in the past two months are expected to continue this year although the general trend is for a strengthening market overall.The forecasts for average 2011 coal prices given by 22 analysts and industry players polled by Reuters were $30-37 a tonne higher than predictions given in January last year but only slightly higher than current values.
(source: Reuters)
Iron ore upswing may not last as China mulls raise in output
Sunday, 13 February 2011
Iron ore prices , which have been steadily climbing to touch $200 per tonne, may cool off in the long run as China is all set to increase iron ore production. The Dragon has just identified 4-5 billion tonne iron ore mines near Mongolia and this may impact their buying pattern in the global market. Basant Poddar, MD of Mineral Enterprises, said: “The current upswing may not continue for long as China is trying to bring new mines into production. Since China is the largest producer of steel and is a large buyer of iron ore from the global market, the new development is expected to influence their purchases.
Since they buy a substantial quantity of iron ore from India, a drop in their offtake could have a bearish effect on Indian exports.” A similar view was expressed by RK Sharma, secretary general of Federation of Indian Mineral Industries, who added that China will continue to play a big role in influencing global raw material prices. “Globally, there is a supply crunch of iron ore. This is expected to drive prices up further in the coming days. The Chinese have, so far, not been active in the global market due to the New Year-related activities,” Sharma said. In the next few months, the outlook on prices is expected to remain bullish as the global steel industry is led by the revival in demand from the Chinese steel makers. H Noor Ahmed, partner of Trident Minerals, said that the current upward price movement is a “momentary phenomenon” and is largely expected to be led by China. “However, we are now disturbed with the closure of iron ore mines in Karnataka which is affecting domestic supplies,” he added.
The trading community expects prices to remain firm in the next few months. “We are noticing a general uptrend in steel input prices due to the recovery in Europe and the US. China, the world’s largest steel producer, too is expected to continue its growth. This is likly to firm up prices in next few months. For Indian steel companies that rely on the market to get ore, this imply a hike in production costs,” said an official of the Indian arm of a leading global trading firm.
(source:TheEconomicIndiaTimes)
Iron ore prices , which have been steadily climbing to touch $200 per tonne, may cool off in the long run as China is all set to increase iron ore production. The Dragon has just identified 4-5 billion tonne iron ore mines near Mongolia and this may impact their buying pattern in the global market. Basant Poddar, MD of Mineral Enterprises, said: “The current upswing may not continue for long as China is trying to bring new mines into production. Since China is the largest producer of steel and is a large buyer of iron ore from the global market, the new development is expected to influence their purchases.
Since they buy a substantial quantity of iron ore from India, a drop in their offtake could have a bearish effect on Indian exports.” A similar view was expressed by RK Sharma, secretary general of Federation of Indian Mineral Industries, who added that China will continue to play a big role in influencing global raw material prices. “Globally, there is a supply crunch of iron ore. This is expected to drive prices up further in the coming days. The Chinese have, so far, not been active in the global market due to the New Year-related activities,” Sharma said. In the next few months, the outlook on prices is expected to remain bullish as the global steel industry is led by the revival in demand from the Chinese steel makers. H Noor Ahmed, partner of Trident Minerals, said that the current upward price movement is a “momentary phenomenon” and is largely expected to be led by China. “However, we are now disturbed with the closure of iron ore mines in Karnataka which is affecting domestic supplies,” he added.
The trading community expects prices to remain firm in the next few months. “We are noticing a general uptrend in steel input prices due to the recovery in Europe and the US. China, the world’s largest steel producer, too is expected to continue its growth. This is likly to firm up prices in next few months. For Indian steel companies that rely on the market to get ore, this imply a hike in production costs,” said an official of the Indian arm of a leading global trading firm.
(source:TheEconomicIndiaTimes)
Supreme Court asks Karnataka Govt. to allow export of iron ore
Sunday, 13 February 2011
The Supreme Court on Friday directed the Karnataka Government to allow the export of iron ore that has piled up in major ports of the state.An apex court bench comprising Justice R.V. Raveendran and Justice A.K.
Patnaik also directed the Karnataka Government to notify a proposed new law to check illegal mining in the state by March 31.The apex court further said if the state government does not bring the proposed law into force by the end of March, mining firms would be entitled to get interim relief.The piling of iron ore at these ports took place following a ban imposed by the State Government in July 2010 in the wake of widespread allegations of illegal mining.
The directives of the apex court came over a plea filed by mining firms challenging two orders of the Karnataka Government banning the transportation of iron ore within the state and exports from ports. (Source: ANI)
The Supreme Court on Friday directed the Karnataka Government to allow the export of iron ore that has piled up in major ports of the state.An apex court bench comprising Justice R.V. Raveendran and Justice A.K.
Patnaik also directed the Karnataka Government to notify a proposed new law to check illegal mining in the state by March 31.The apex court further said if the state government does not bring the proposed law into force by the end of March, mining firms would be entitled to get interim relief.The piling of iron ore at these ports took place following a ban imposed by the State Government in July 2010 in the wake of widespread allegations of illegal mining.
The directives of the apex court came over a plea filed by mining firms challenging two orders of the Karnataka Government banning the transportation of iron ore within the state and exports from ports. (Source: ANI)
African iron ore projects potential for new supply- RBC
Sunday, 13 Feb 2011
Traditional iron ore producers in Australia and Brazil are investing heavily to grow their production to meet surging Chinese demand and maintain their dominant position in the industry. But a huge amount of new African iron ore is targeting the market as well.
By RBC Capital Markets’ calculations, planned African projects total at least 500 million tonne per year at an all in capital cost of over USD 50 billion over the next eight years.
RBC cautions that “Not all these projects will get built. Chinese iron ore demand growth may be slowing, but imports are expected to continue to grow in part due to declining grades of domestic production. As such, China will be the likely destination for much of the new African iron ore supply over the coming years. The majority of production from many African projects is likely to be pellet feed product, which has traditionally been a niche product. With a diversification by Chinese buyers away from traditional producers in Australia and Brazil, the importance of these African projects could increase.”
RBC notes that “infrastructure plans can be as important as asset quality” and says “aside from project size, we look for the following key attributes in African iron ore projects:
Direct Shipping Ore potentialMost African projects are relatively low grade magnetite, but some include weathered caps which could result in directly shippable products, materially improving project economics.
Infrastructure solutionProjects with shorter required rail or haulage routes would not only have lower CAPEX, but also shorter lead times to come on line.
In country stability agreementSeveral companies have secured long term in country Mining Conventions, establishing the taxation, royalties and general terms under which their projects will be governed. Most African countries we have analyzed have supported investment in iron ore. Nonetheless, a signed stability agreement is a vote of confidence.
Financing partner/off take agreementIn many cases, CAPEX for these projects is in the multi-billion dollar range. Companies that have signed on partners to help finance or purchase off-take from their projects have an advantage in our view. Of course the flipside is that companies that haven’t yet signed on partners could have significant upside if/when they do.”
RBC has analyzed over 40 projects in Africa (ex South Africa) and summarized the key attributes of the projects which it believes have the greatest potential to become large-scale producers, owned by companies including: African Iron, African Minerals, Bellzone Mining, Cape Lambert Resources, Core Mining, Equatorial Resources, London Mining, Sundance Resources and Zanaga Iron Ore Co, among others.
Traditional iron ore producers in Australia and Brazil are investing heavily to grow their production to meet surging Chinese demand and maintain their dominant position in the industry. But a huge amount of new African iron ore is targeting the market as well.
By RBC Capital Markets’ calculations, planned African projects total at least 500 million tonne per year at an all in capital cost of over USD 50 billion over the next eight years.
RBC cautions that “Not all these projects will get built. Chinese iron ore demand growth may be slowing, but imports are expected to continue to grow in part due to declining grades of domestic production. As such, China will be the likely destination for much of the new African iron ore supply over the coming years. The majority of production from many African projects is likely to be pellet feed product, which has traditionally been a niche product. With a diversification by Chinese buyers away from traditional producers in Australia and Brazil, the importance of these African projects could increase.”
RBC notes that “infrastructure plans can be as important as asset quality” and says “aside from project size, we look for the following key attributes in African iron ore projects:
Direct Shipping Ore potentialMost African projects are relatively low grade magnetite, but some include weathered caps which could result in directly shippable products, materially improving project economics.
Infrastructure solutionProjects with shorter required rail or haulage routes would not only have lower CAPEX, but also shorter lead times to come on line.
In country stability agreementSeveral companies have secured long term in country Mining Conventions, establishing the taxation, royalties and general terms under which their projects will be governed. Most African countries we have analyzed have supported investment in iron ore. Nonetheless, a signed stability agreement is a vote of confidence.
Financing partner/off take agreementIn many cases, CAPEX for these projects is in the multi-billion dollar range. Companies that have signed on partners to help finance or purchase off-take from their projects have an advantage in our view. Of course the flipside is that companies that haven’t yet signed on partners could have significant upside if/when they do.”
RBC has analyzed over 40 projects in Africa (ex South Africa) and summarized the key attributes of the projects which it believes have the greatest potential to become large-scale producers, owned by companies including: African Iron, African Minerals, Bellzone Mining, Cape Lambert Resources, Core Mining, Equatorial Resources, London Mining, Sundance Resources and Zanaga Iron Ore Co, among others.
Indian iron ore mining mess - CBI issues notices to 65 iron ore miners
Sunday, 13 Feb 2011
Soon after the Supreme Court lifted its stay on the export of iron ore, the Central Bureau of Investigation, which is conducting an inquiry into illegal mining particularly in the Andhra Pradesh Karnataka border area of Bellary and issued notices to 65 mining companies in the district.
The companies include those owned by Karnataka tourism minister Mr G Janardhana Reddy, his family members and close associates.
The companies have been asked to furnish details about their export, mining lease plans and permits, monthly and annual returns, articles of association, details of company directors and their balance sheets from 1998 to date.
After a CBI team concluded a three day inspection of various mining areas in the district, Mr PV Seetharam inspector of police CBI Bangalore, issued the notices to the companies, which have to respond by February 18.
An official said the CBI's intention is to unearth the Reddy owned Obalapuram Mining Co's deals on mining leases in the district, mutual contracts with other companies, as well as any illegal mining leases and transactions.
(Sourced from domain-B)
Soon after the Supreme Court lifted its stay on the export of iron ore, the Central Bureau of Investigation, which is conducting an inquiry into illegal mining particularly in the Andhra Pradesh Karnataka border area of Bellary and issued notices to 65 mining companies in the district.
The companies include those owned by Karnataka tourism minister Mr G Janardhana Reddy, his family members and close associates.
The companies have been asked to furnish details about their export, mining lease plans and permits, monthly and annual returns, articles of association, details of company directors and their balance sheets from 1998 to date.
After a CBI team concluded a three day inspection of various mining areas in the district, Mr PV Seetharam inspector of police CBI Bangalore, issued the notices to the companies, which have to respond by February 18.
An official said the CBI's intention is to unearth the Reddy owned Obalapuram Mining Co's deals on mining leases in the district, mutual contracts with other companies, as well as any illegal mining leases and transactions.
(Sourced from domain-B)
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