Tuesday, 29 Mar 2011
Moly Mines said that it has confirmed the third shipment of iron ore from the Spinifex Ridge project, east of Port Hedland, western Australia.
The vessel, which is carrying 70,202 wet metric tonnes of iron ore grading 60% iron, is destined for China. Final pricing is expected to be in the range of USD 160 to USD 170 per tonne CFR China.
The company said that shipments for the March 2011 quarter have met forecasts, and ramp up of the mine, which began production late last year, is now complete.
Monthly shipments are scheduled for the remainder of the calendar year, with a budget of 820,000 tonnes targeted.
The company's iron ore deposits are located on the same tenements as the Spinifex Ridge molybdenum project. (sourced proactiveinvestors)
Showing posts with label Tue Mar29 2011. Show all posts
Showing posts with label Tue Mar29 2011. Show all posts
Tuesday, March 29, 2011
Xstrata kicks off FY 2011 thermal coal contract talks in Japan
28Mar2011/1103 am EDT/1503 GMT
Mannila (Platts)-- Major Australian coal producer Xstrata has kicked off 2011 fiscal year thermal coal contract negotiations with power utilities in the west of Japan, excluding Tohoku Electric whose major plants in the east are unoperational following the devastating March 11 earthquake and tsunami, sources said Monday.
In talks held last week, Xstrata was said to have held separate meetings with representatives of Chugoku Electric, Kansai Electric, Chubu Electric and Kyushu Electric, one Japan-based source said.
Meetings have yet to be held with Hokuriku Electric and Shikoku Electric, both of which are situated in the western part of Japan, the source said. Xstrata also held off talks with Tohoku Electric and Tokyo Electric (Tepco).
No prices were tabled by either Xstrata or the Japanese power utilities during the separate talks, sources said, although Xstrata representatives may return in the next week or 10 days to resume negotiations.
"There were no prices talked about during the meetings last week. Both sides stated their market analysis. I believe there were no numbers discussed, because both sides felt there would be a big discrepancy in the price expectations," the Japanese source said.
In the absence of Tohoku as a so-called champion negotiator for the Japanese power utilities, it is believed that Chugoku will lead the FY2011 talks for the Japanese side, the source said.
'TOKYO STILL HAVING ROLLING BLACKOUTS'
Industry sources said coal prices had not skyrocketed as previously expected following the massive Japanese temblor, as the loss of coal-fired power capacity in Japan had been huge.
"Clearly, there is a shortage. This is a power crisis. That is why Tokyo is still experiencing rolling power outages," the Japanese source said.
"Tohoku is one of the biggest coal buyers in Japan. Its Haramachi coal-fired power station alone consumes up to 5 million mt of coal annually.
The market for Australian coal in Japan has shrunk. Japan is currently not a major destination for Australian coal," the Japanese source said. A coal trader estimated Japan's fiscal 2011 coal imports would decline by 12-17 million mt.
"There has been no advice when the damaged Japanese coal-fired power stations will resume operations. From my point of view, it will take about a year or longer before these damaged power plants return to operation," the Japanese source said.
"Australian shippers have to find other markets for their coal. I don't see coal prices riding high this year because of the tragedy that struck Japan." He added, however, that certain power companies would run their coal-fired power stations at higher capacities this spring -- a season when coal stations are usually idled or stopped for maintenance -- to provide support in the current electricity crisis.
"But the JPUs will not only be increasing their coal-fired power capacities. The JPUs will also operate their other power stations running on oil and LNG at higher capacities," he commented.(sourced:The Platts)
Tags :Kyushu Electric, Hokuriku Electric, Shikoku Electric, Tokyo, raw material,
Mannila (Platts)-- Major Australian coal producer Xstrata has kicked off 2011 fiscal year thermal coal contract negotiations with power utilities in the west of Japan, excluding Tohoku Electric whose major plants in the east are unoperational following the devastating March 11 earthquake and tsunami, sources said Monday.
In talks held last week, Xstrata was said to have held separate meetings with representatives of Chugoku Electric, Kansai Electric, Chubu Electric and Kyushu Electric, one Japan-based source said.
Meetings have yet to be held with Hokuriku Electric and Shikoku Electric, both of which are situated in the western part of Japan, the source said. Xstrata also held off talks with Tohoku Electric and Tokyo Electric (Tepco).
No prices were tabled by either Xstrata or the Japanese power utilities during the separate talks, sources said, although Xstrata representatives may return in the next week or 10 days to resume negotiations.
"There were no prices talked about during the meetings last week. Both sides stated their market analysis. I believe there were no numbers discussed, because both sides felt there would be a big discrepancy in the price expectations," the Japanese source said.
In the absence of Tohoku as a so-called champion negotiator for the Japanese power utilities, it is believed that Chugoku will lead the FY2011 talks for the Japanese side, the source said.
'TOKYO STILL HAVING ROLLING BLACKOUTS'
Industry sources said coal prices had not skyrocketed as previously expected following the massive Japanese temblor, as the loss of coal-fired power capacity in Japan had been huge.
"Clearly, there is a shortage. This is a power crisis. That is why Tokyo is still experiencing rolling power outages," the Japanese source said.
"Tohoku is one of the biggest coal buyers in Japan. Its Haramachi coal-fired power station alone consumes up to 5 million mt of coal annually.
The market for Australian coal in Japan has shrunk. Japan is currently not a major destination for Australian coal," the Japanese source said. A coal trader estimated Japan's fiscal 2011 coal imports would decline by 12-17 million mt.
"There has been no advice when the damaged Japanese coal-fired power stations will resume operations. From my point of view, it will take about a year or longer before these damaged power plants return to operation," the Japanese source said.
"Australian shippers have to find other markets for their coal. I don't see coal prices riding high this year because of the tragedy that struck Japan." He added, however, that certain power companies would run their coal-fired power stations at higher capacities this spring -- a season when coal stations are usually idled or stopped for maintenance -- to provide support in the current electricity crisis.
"But the JPUs will not only be increasing their coal-fired power capacities. The JPUs will also operate their other power stations running on oil and LNG at higher capacities," he commented.(sourced:The Platts)
Tags :Kyushu Electric, Hokuriku Electric, Shikoku Electric, Tokyo, raw material,
China may face up to 56 mln T coking coal shortfall -paper
Tue Mar 29, 2011 12:41am GMT
SHANGHAI, March 29 (Reuters) - China, the world's biggest user and producer of coal, may face a shortfall of 56 million tonnes of coking coal this year, the China Securities Journal reported on Tuesday, pushing Chinese steel mills to look further afield to make up the supply gap.
China is expected to produce 513 million tonnes of coking coal, used in steel production, in 2011, but total consumption is expected to reach 569 million tonnes, the paper said, citing forecasts made by top Chinese coal miners and analysts at an industry conference.
Faced with a widening supply gap, Chinese mills are set to boost imports from countries such as Mongolia, Russia and Australia.
However, import growth for the year is expected to fall to around 10 percent, compared with the stellar 37.3 percent growth posted in 2010, said Shanxi Coking Coal Group Ltd General Manager Liu Shengrui.
China imported 47.27 million tonnes of coking coal in 2010, with imports from neighbouring Mongolia surging 278 percent to 15 million tonnes, trailing behind top supplier Australia's 17.4 million tonnes.
Global coking prices are forecast to rise strongly overly the first half of this decade, as producers struggle to keep pace with surging demand led by steel makers from China and India. (Reporting by Fayen Wong; Editing by Ken Wills, sourced Reuters)
SHANGHAI, March 29 (Reuters) - China, the world's biggest user and producer of coal, may face a shortfall of 56 million tonnes of coking coal this year, the China Securities Journal reported on Tuesday, pushing Chinese steel mills to look further afield to make up the supply gap.
China is expected to produce 513 million tonnes of coking coal, used in steel production, in 2011, but total consumption is expected to reach 569 million tonnes, the paper said, citing forecasts made by top Chinese coal miners and analysts at an industry conference.
Faced with a widening supply gap, Chinese mills are set to boost imports from countries such as Mongolia, Russia and Australia.
However, import growth for the year is expected to fall to around 10 percent, compared with the stellar 37.3 percent growth posted in 2010, said Shanxi Coking Coal Group Ltd General Manager Liu Shengrui.
China imported 47.27 million tonnes of coking coal in 2010, with imports from neighbouring Mongolia surging 278 percent to 15 million tonnes, trailing behind top supplier Australia's 17.4 million tonnes.
Global coking prices are forecast to rise strongly overly the first half of this decade, as producers struggle to keep pace with surging demand led by steel makers from China and India. (Reporting by Fayen Wong; Editing by Ken Wills, sourced Reuters)
China daily steel output hits record 1.945 mln T in mid-March
Tue Mar 29, 2011 5:52am GMT
BEIJING, March 29 (Reuters) - Daily output of crude steel in March 11-20 reached a record 1.945 million tonnes, figures from the China Iron and Steel Association showed on Tuesday.
Despite uncertain demand, daily output stood at an average of 1.92 million tonnes in the first 20 days of the month, up from 1.823 million tonnes in February.
The figure would total more than 700 million tonnes when calculated on an annual basis.
Indonesia's coal upgrading rule to apply when technology available
Tue Mar 29, 2011 5:35am GMT
JAKARTA, March 29 (Reuters) - Indonesia is likely to delay a regulation requiring miners to upgrade their low-quality coal, until the technology is commercially available, said a senior mining official said on Tuesday.
Coal producers in the world's top exporter of thermal coal had urged the government to delay the rule as they said it could dampen interest in mining investments.
The energy and minerals ministry has been drafting a regulation that would by 2014 require coal producers to upgrade low-quality coal to a medium-quality coal before exporting. The coal would need a minimum heating value of 5,600 kcal/kg on a air-dried basis.
"There are some pilot projects but so far there is no proven upgrading technology," said Bambang Setiawan, director general of minerals and coal at the energy and minerals ministry.
"We can't tell them to upgrade if there's no technology available. We will see if the technology will be available in the next 3-4 years," said Setiawan.
The planned regulation was part of a mining and coal law introduced in 2009 that requires miners to process coal and minerals into higher value products before exporting them, as the country seeks to boost revenue from the mining sector.
The Indonesian Coal Mining Association has said Indonesia's mineable reserves of low-quality coal may reach 10 billion tonnes, or half of current total reserves of around 21 million tonnes, within the next 2-3 years, as more firms are expected to start producing coal with a heating value of 3,000-3,400 kcal/kg.
Tags : Indonesian Coal Mining Association, raw material, power station coal,
Coal producers in the world's top exporter of thermal coal had urged the government to delay the rule as they said it could dampen interest in mining investments.
The energy and minerals ministry has been drafting a regulation that would by 2014 require coal producers to upgrade low-quality coal to a medium-quality coal before exporting. The coal would need a minimum heating value of 5,600 kcal/kg on a air-dried basis.
"There are some pilot projects but so far there is no proven upgrading technology," said Bambang Setiawan, director general of minerals and coal at the energy and minerals ministry.
"We can't tell them to upgrade if there's no technology available. We will see if the technology will be available in the next 3-4 years," said Setiawan.
The planned regulation was part of a mining and coal law introduced in 2009 that requires miners to process coal and minerals into higher value products before exporting them, as the country seeks to boost revenue from the mining sector.
The Indonesian Coal Mining Association has said Indonesia's mineable reserves of low-quality coal may reach 10 billion tonnes, or half of current total reserves of around 21 million tonnes, within the next 2-3 years, as more firms are expected to start producing coal with a heating value of 3,000-3,400 kcal/kg.
Tags : Indonesian Coal Mining Association, raw material, power station coal,
Japan shipper mulls future of vessel with "abnormal" radiation
Tue Mar 29, 2011 4:58am GMT
* China rejected MOL's ship, citing abnormal radiation levels
* MOL's ship expected to arrive at port of Kobe on Wednesday
By Chikako Mogi and Randy Fabi
TOKYO/SINGAPORE, March 29 (Reuters) - Mitsui O.S.K. Lines has not yet decided what it will do with its container ship when it returns to Japan this week, a company official said on Tuesday, after China rejected the vessel for "abnormal" radiation levels.
The MOL Presence is the first ship barred from unloading its cargo at a foreign port over radiation concerns since Japan's Fukushima nuclear plant was crippled by the March 11 earthquake, a spokesman for the Japanese Shipowners Association said.
Governments, including China and the United States, have begun screening for radiation on ships that travelled from Japan's quake-hit northeast, threatening to slow seaborne trade for the world's third largest economy.
"The container ship is expected to arrive in the port of Kobe on Wednesday," said a spokeswoman for MOL, the world's 11th largest container shipper. "The travel plan on when or whether the container ship will depart Kobe is not decided as of now."
If radiation levels are confirmed to be too high on the vessel, MOL may be forced to dispose of the machinery, furniture and other cargo on the ship and reimburse its clients since insurance companies do not cover radiation exposure linked to nuclear accidents, industry experts said.
The vessel would also need to be thoroughly cleaned before it can set sail again.
Chinese authorities detected a maximum of 3.5 microsieverts per hour on MOL's ship when it arrived at the port of Xiamen in eastern Fujian province last week, the company spokeswoman said.
That is above the global average of naturally occurring background radiation, but half of the cosmic radiation experienced on a Tokyo-New York flight.
The Chinese standard level was not disclosed.
U.S. SHIPMENT
The MOL Presence originated in California, stopping in Tokyo for only a few hours on March 17 before arriving in China four days later, port authorities said.
Ports in Tokyo Bay, located 240 km (150 miles) south of the Fukushima nuclear plant, remain outside the exclusion zone for most shipping companies.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
"At this point, there is no change to our shipping schedule, including location of the ports we call at," the MOL's spokeswoman said. She said this is the first case a Mitsui ship was turned back.
Radiation levels as of late Monday in Tokyo Bay ports were considered "very safe", Japan's transport ministry said on its website.
"Thus far, the flow of traffic to and from Japan has not been impacted by radiation fears," said a U.S.-based shipping source.
"Although some owners have been reluctant to trade cargoes to Japan, there have been sufficient owners willing to do so and that has minimized the impact." (sourced:Reuters)
Tags :Japanese Shipowners Association, Port of Kobe, U.S.Shipment, Tokyo Bay,radiation fears,Tokyo
* China rejected MOL's ship, citing abnormal radiation levels
* MOL's ship expected to arrive at port of Kobe on Wednesday
By Chikako Mogi and Randy Fabi
TOKYO/SINGAPORE, March 29 (Reuters) - Mitsui O.S.K. Lines has not yet decided what it will do with its container ship when it returns to Japan this week, a company official said on Tuesday, after China rejected the vessel for "abnormal" radiation levels.
The MOL Presence is the first ship barred from unloading its cargo at a foreign port over radiation concerns since Japan's Fukushima nuclear plant was crippled by the March 11 earthquake, a spokesman for the Japanese Shipowners Association said.
Governments, including China and the United States, have begun screening for radiation on ships that travelled from Japan's quake-hit northeast, threatening to slow seaborne trade for the world's third largest economy.
"The container ship is expected to arrive in the port of Kobe on Wednesday," said a spokeswoman for MOL, the world's 11th largest container shipper. "The travel plan on when or whether the container ship will depart Kobe is not decided as of now."
If radiation levels are confirmed to be too high on the vessel, MOL may be forced to dispose of the machinery, furniture and other cargo on the ship and reimburse its clients since insurance companies do not cover radiation exposure linked to nuclear accidents, industry experts said.
The vessel would also need to be thoroughly cleaned before it can set sail again.
Chinese authorities detected a maximum of 3.5 microsieverts per hour on MOL's ship when it arrived at the port of Xiamen in eastern Fujian province last week, the company spokeswoman said.
That is above the global average of naturally occurring background radiation, but half of the cosmic radiation experienced on a Tokyo-New York flight.
The Chinese standard level was not disclosed.
U.S. SHIPMENT
The MOL Presence originated in California, stopping in Tokyo for only a few hours on March 17 before arriving in China four days later, port authorities said.
Ports in Tokyo Bay, located 240 km (150 miles) south of the Fukushima nuclear plant, remain outside the exclusion zone for most shipping companies.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
"At this point, there is no change to our shipping schedule, including location of the ports we call at," the MOL's spokeswoman said. She said this is the first case a Mitsui ship was turned back.
Radiation levels as of late Monday in Tokyo Bay ports were considered "very safe", Japan's transport ministry said on its website.
"Thus far, the flow of traffic to and from Japan has not been impacted by radiation fears," said a U.S.-based shipping source.
"Although some owners have been reluctant to trade cargoes to Japan, there have been sufficient owners willing to do so and that has minimized the impact." (sourced:Reuters)
Tags :Japanese Shipowners Association, Port of Kobe, U.S.Shipment, Tokyo Bay,radiation fears,Tokyo
Japan finds plutonium in soil at stricken nuclear plant
Tue Mar 29, 2011 5:15am GMT
* Plutonium found in soil at Fukushima complex
* Japan's nuclear safety agency worried about reactor breach
* Radiation increases, bad news piles up from site
* PM Kan lambasted in parliament over disaster
* Plant operator seeks help from French companies
By Chizu Nomiyama and Kazunori Takada
TOKYO, March 29 (Reuters) - Plutonium found in soil at the Fukushima nuclear complex heightened alarm on Tuesday over Japan's battle to contain the world's worst atomic crisis in 25 years, while opposition MPs attacked the prime minister for his handling of the disaster.
Some opposition lawmakers lambasted Naoto Kan in parliament for not extending an evacuation zone around the plant. Kan said he was seeking advice on widening the area, which would force 130,000 people to move in addition to 70,000 already displaced.
Plant operator Tokyo Electric Power Co said plutonium was found at low-risk levels in five places at the facility, which was crippled by a massive earthquake and tsunami on March 11.
A by-product of atomic reactions and also used in nuclear bombs, plutonium is highly carcinogenic and one of the most dangerous substances on the planet, experts say.
They believe some of the plutonium may have come from spent fuel rods at Fukushima or damage to reactor No. 3, the only one to use plutonium in its fuel mix.
Japan's Nuclear and Industrial Safety Agency said while the plutonium levels were not harmful to human health, the discovery could mean a breach in the reactor's containment mechanism.
"Plutonium is a substance that's emitted when the temperature is high, and it's also heavy and so does not leak out easily," agency deputy director Hidehiko Nishiyama told a news conference.
"So if plutonium has emerged from the reactor, that tells us something about the damage to the fuel. And if it has breached the original containment system, it underlines the gravity and seriousness of this accident."
Sakae Muto, a Tokyo Electric vice-president, said the traces of plutonium-238, 239 and 240 were in keeping with levels found in Japan in the past due to particles in the atmosphere from nuclear testing abroad.
"I apologise for making people worried," Muto said.
PARTIAL MELTDOWN
Workers at Fukushima may have to struggle for weeks or months under extremely dangerous conditions to re-start cooling systems vital to control the reactors and avert total meltdown.
On Monday, highly contaminated water was found in concrete tunnels extending beyond one reactor, while at the weekend radiation hit 100,000 times over normal in water inside another.
That poses a major dilemma for Tokyo Electric, which wants to douse the reactors to cool them, but not worsen the radiation spread, Chief Cabinet Secretary Yukio Edano said on Tuesday.
"On the issue of pumping in water, we must avoid a situation in which the temperature (of the fuel rods) rises and the water boils off. So this cooling is a priority. On the other hand, on the standing water, under the circumstances work must proceed to remove it as quickly as possible," he said.
Japan says a partial meltdown of fuel rods inside reactor No. 2 has contributed to the radiation levels.
The crisis, the worst nuclear accident since Chernobyl in 1986, has contaminated vegetables and milk from the area, as well as the surrounding sea. U.S. experts said groundwater, reservoirs and the sea all faced "significant contamination".
Facing a long and uncertain operation, Tokyo Electric has sought help from firms including Electricite de France SA and Areva SA (CEPFi.PA: Quote), the French government said.
Japan is also consulting Washington. The head of the U.S. Nuclear Regulatory Commission, Gregory Jaczko, met Japanese officials in Tokyo on Monday.
"The unprecedented challenge before us remains serious and our best experts remain fully engaged to help Japan address the situation," Jaczko said in a statement.
Experts have said the lack of information and some inconsistent data makes it hard to understand what is happening at Fukushima, which appears to have moved from a core-meltdown phase to one in which management of released radioactivity is paramount.
"There's a lot of radioactivity outside the containment barriers that poses a threat to workers and the public that needs to be addressed," said David Lochbaum, director of the nuclear safety project at the U.S.-based Union of Concerned Scientists, a long-time nuclear watchdog group.
"That's the top priority."
NATIONALISATION FOR NUCLEAR OPERATOR?
The crisis has put enormous pressure on Tokyo Electric, criticised for safety lapses and a slow disaster response. Its boss, Masataka Shimizu, has barely been seen.
The government might discuss nationalising Tokyo Electric to deal with the crisis, National Strategy Minister Koichiro Gemba said. Its shares have tumbled 70 percent since the crisis.
Kan, leading Japan during its worst crisis since World War Two, was already deeply unpopular and under pressure to resign before the events of March 11.
He apologised for flying over the stricken nuclear site a day after the quake, which media reports said had delayed operations to cool the reactors. He also assured lawmakers the government was disclosing all the information it had.
More than 70,000 people have been evacuated from a largely rural area within 20 km (12 miles) of the facility.
But opposition MP Yosuke Isozaki blasted Kan for not ordering people living in a band between 20 km and 30 km (12-19 miles) from the plant to also leave, asking "is there anything as irresponsible as this?".
The 130,000 people inside that zone have been encouraged -- but not ordered -- to leave.
Environmental group Greenpeace has urged an extension of the 20-km evacuation zone while the United States has recommended its citizens who live within 80 km (50 miles) of the plant to leave or shelter indoors.
Even though Japan's culture stresses group efficiency over individual charisma, many are unhappy and a weekend poll showed a majority feel Kan has not shown good leadership.
"The characters involved are too weak to take decisive actions," said Jesper Koll, analyst at JP Morgan Securities.
Beyond the evacuation zone, traces of radiation have been found in tap water in Tokyo and as far away as Iceland.
Japanese officials and international experts have generally said the levels away from the plant were not dangerous for human beings, who in any case face higher radiation doses on a daily basis from natural sources, X-rays or flying.
The drama at the six-reactor facility has compounded Japan's agony after the double disaster left more than 28,000 people dead or missing in the devastated northeast.
With towns on the northeast coast reduced to apocalyptic landscapes of mud and debris, more than a quarter of a million people are homeless. The event may be the world's costliest natural disaster, with estimates of damage topping $300 billion.
Tags : Tokyo Electric Power Co, Japan, partial meltdown, Tokyo,
* Plutonium found in soil at Fukushima complex
* Japan's nuclear safety agency worried about reactor breach
* Radiation increases, bad news piles up from site
* PM Kan lambasted in parliament over disaster
* Plant operator seeks help from French companies
By Chizu Nomiyama and Kazunori Takada
TOKYO, March 29 (Reuters) - Plutonium found in soil at the Fukushima nuclear complex heightened alarm on Tuesday over Japan's battle to contain the world's worst atomic crisis in 25 years, while opposition MPs attacked the prime minister for his handling of the disaster.
Some opposition lawmakers lambasted Naoto Kan in parliament for not extending an evacuation zone around the plant. Kan said he was seeking advice on widening the area, which would force 130,000 people to move in addition to 70,000 already displaced.
Plant operator Tokyo Electric Power Co said plutonium was found at low-risk levels in five places at the facility, which was crippled by a massive earthquake and tsunami on March 11.
A by-product of atomic reactions and also used in nuclear bombs, plutonium is highly carcinogenic and one of the most dangerous substances on the planet, experts say.
They believe some of the plutonium may have come from spent fuel rods at Fukushima or damage to reactor No. 3, the only one to use plutonium in its fuel mix.
Japan's Nuclear and Industrial Safety Agency said while the plutonium levels were not harmful to human health, the discovery could mean a breach in the reactor's containment mechanism.
"Plutonium is a substance that's emitted when the temperature is high, and it's also heavy and so does not leak out easily," agency deputy director Hidehiko Nishiyama told a news conference.
"So if plutonium has emerged from the reactor, that tells us something about the damage to the fuel. And if it has breached the original containment system, it underlines the gravity and seriousness of this accident."
Sakae Muto, a Tokyo Electric vice-president, said the traces of plutonium-238, 239 and 240 were in keeping with levels found in Japan in the past due to particles in the atmosphere from nuclear testing abroad.
"I apologise for making people worried," Muto said.
PARTIAL MELTDOWN
Workers at Fukushima may have to struggle for weeks or months under extremely dangerous conditions to re-start cooling systems vital to control the reactors and avert total meltdown.
On Monday, highly contaminated water was found in concrete tunnels extending beyond one reactor, while at the weekend radiation hit 100,000 times over normal in water inside another.
That poses a major dilemma for Tokyo Electric, which wants to douse the reactors to cool them, but not worsen the radiation spread, Chief Cabinet Secretary Yukio Edano said on Tuesday.
"On the issue of pumping in water, we must avoid a situation in which the temperature (of the fuel rods) rises and the water boils off. So this cooling is a priority. On the other hand, on the standing water, under the circumstances work must proceed to remove it as quickly as possible," he said.
Japan says a partial meltdown of fuel rods inside reactor No. 2 has contributed to the radiation levels.
The crisis, the worst nuclear accident since Chernobyl in 1986, has contaminated vegetables and milk from the area, as well as the surrounding sea. U.S. experts said groundwater, reservoirs and the sea all faced "significant contamination".
Facing a long and uncertain operation, Tokyo Electric has sought help from firms including Electricite de France SA and Areva SA (CEPFi.PA: Quote), the French government said.
Japan is also consulting Washington. The head of the U.S. Nuclear Regulatory Commission, Gregory Jaczko, met Japanese officials in Tokyo on Monday.
"The unprecedented challenge before us remains serious and our best experts remain fully engaged to help Japan address the situation," Jaczko said in a statement.
Experts have said the lack of information and some inconsistent data makes it hard to understand what is happening at Fukushima, which appears to have moved from a core-meltdown phase to one in which management of released radioactivity is paramount.
"There's a lot of radioactivity outside the containment barriers that poses a threat to workers and the public that needs to be addressed," said David Lochbaum, director of the nuclear safety project at the U.S.-based Union of Concerned Scientists, a long-time nuclear watchdog group.
"That's the top priority."
NATIONALISATION FOR NUCLEAR OPERATOR?
The crisis has put enormous pressure on Tokyo Electric, criticised for safety lapses and a slow disaster response. Its boss, Masataka Shimizu, has barely been seen.
The government might discuss nationalising Tokyo Electric to deal with the crisis, National Strategy Minister Koichiro Gemba said. Its shares have tumbled 70 percent since the crisis.
Kan, leading Japan during its worst crisis since World War Two, was already deeply unpopular and under pressure to resign before the events of March 11.
He apologised for flying over the stricken nuclear site a day after the quake, which media reports said had delayed operations to cool the reactors. He also assured lawmakers the government was disclosing all the information it had.
More than 70,000 people have been evacuated from a largely rural area within 20 km (12 miles) of the facility.
But opposition MP Yosuke Isozaki blasted Kan for not ordering people living in a band between 20 km and 30 km (12-19 miles) from the plant to also leave, asking "is there anything as irresponsible as this?".
The 130,000 people inside that zone have been encouraged -- but not ordered -- to leave.
Environmental group Greenpeace has urged an extension of the 20-km evacuation zone while the United States has recommended its citizens who live within 80 km (50 miles) of the plant to leave or shelter indoors.
Even though Japan's culture stresses group efficiency over individual charisma, many are unhappy and a weekend poll showed a majority feel Kan has not shown good leadership.
"The characters involved are too weak to take decisive actions," said Jesper Koll, analyst at JP Morgan Securities.
Beyond the evacuation zone, traces of radiation have been found in tap water in Tokyo and as far away as Iceland.
Japanese officials and international experts have generally said the levels away from the plant were not dangerous for human beings, who in any case face higher radiation doses on a daily basis from natural sources, X-rays or flying.
The drama at the six-reactor facility has compounded Japan's agony after the double disaster left more than 28,000 people dead or missing in the devastated northeast.
With towns on the northeast coast reduced to apocalyptic landscapes of mud and debris, more than a quarter of a million people are homeless. The event may be the world's costliest natural disaster, with estimates of damage topping $300 billion.
Tags : Tokyo Electric Power Co, Japan, partial meltdown, Tokyo,
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