Iron Ore-Shanghai rebar futures fall over 4 pct in commodities selloff

Tue Aug 9, 2011

* Shanghai rebar futures fall to lowest since March 24
* Investors remain wary over global economic outlook
* Iron ore prices hold firm amid supply tightness
* Key global iron ore indexes mixed on Monday

By Ruby Lian and Manolo Serapio Jr

SHANGHAI/SINGAPORE, Aug 9 (Reuters) - China rebar futures fell more than 4 percent on Tuesday to the lowest since March as investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in the United States and Europe.

The most active January rebar contract on the Shanghai Futures Exchange SRBc6 fell as low as 4,558 yuan ($708) per tonne, the weakest since March 24, tracking Asian equities and other commodities, but the declined was trimmed to 0.84 percent by the midday break from the previous close.

"The Chinese market remains panicked by the overnight slump in global markets caused by spreading worries about the U.S. and European crises. Rebar will stay vulnerable unless the two regions work out how to ease the crisis properly," said China's Orient Futures analyst Wang Dezhi.

The U.S. downgrade by Standard & Poor's late on Friday continued to spook global investors and raise market concerns that the world's largest economy is sliding into recession while Europe is facing an ever-worsening sovereign debt crisis.

Asian stock markets nosedived on Tuesday and the Swiss franc held near a record high against the dollar and euro in Asia, having surged as a crisis of confidence gripped investors. .

London copper hit an eight-month low on Tuesday, while base metals futures on the Shanghai Futures Exchange also fell significantly, with benchmark Shanghai copper tumbling 6 percent to the downward trade limit [ID : nB9E7IC001]

IRON ORE LESS VOLATILE

China's spot iron ore market has remained less affected by growing fears over a global economic downturn than other commodities, with offers holding firm on Tuesday as supply from India, the world's biggest supplier of spot iron ore, has remained tight.

"There is panic in the iron ore market too, but prices are mainly supply-driven and thus almost steady, unlike copper or rebar," said an iron ore trader in Shenzhen.

Exports from a key producing region of India's Karnataka state have not yet resumed, compounded by a ban on mining in its Bellary region, which continues to buoy market fundamentals, particularly during its monsoon season.

Australia, the world's top iron ore supplier, expects demand to continue to grow, particularly from Asia, despite global market turmoil.

Quotes for Indian 63.5/63 iron ore stood unchanged at $185-187 per tonne, including freight, on Tuesday, while offers for 62-grade Newman fines from Australia were steady at $181-183 per tonne.

Key global iron ore indexes, tracking spot deals in China and used by global miners to settle contract prices, were mixed again on Monday.

The Steel Index's 62-percent iron ore reference price .IO62-CNI=SI rose 10 cents again to $178.1 per tonne, its highest since May 17, while Metal Bulletin Iron Ore Index .IO62-CNO=MB rose 32 cents to $177.77 per tonne, close to its highest in nearly two months hit last Thursday.

Platts 62-percent index IODBZ00-PLT fell half a dollar to $177.5 per tonne on Monday. ($1 = 6.436 yuan)

(sourced Thomson Reuters)

Record high steel production forecast for 2011, further growth in 2012

Tue,Feb1, 2011
MEPS estimates world steel output, in 2010, at just over 1.4 billion tonnes. This equates to a rise of over 190 million tonnes (16 percent) compared with 2009. China, Japan and the US have contributed over 50 percent of the growth. Steel production in Germany and South Korea has also shown significant expansion.

The majority of countries have recorded double-digit percentage rises in 2010 relative to 2009. The largest of these are found in the more economically developed regions – European Union, North America and Oceania - whose markets declined the most in the downturn of 2009.
The economic outlook for 2011 is cautiously optimistic. In the West, certain sectors of the economy are performing well. However, the construction market remains depressed and this continues to dampen demand for steel, especially long products. Government spending cuts and the fragile financial situation could pose further negative risks.
In 2011, strong growth in steel production is expected in South America and the Middle East. Although the impact of this will be relatively small on the world total when compared to the dominance of China. Gains in the industrialised nations are likely to be modest. MEPS forecasts a year-on-year increase of approximately 4.4 percent for global steel production in 2012.

Source: MEPS

Aperam on cost-cutting diet

Wed, February 2, 2011

Bloomberg reported that Aperam, the stainless steel unit spun off from ArcelorMittal last week, aims to cut costs by USD 250 million over two years, more than the USD 110 million still left to make under a previous plan.
Mr Bernard Fontana CEO of Aperam said that the company, already present in 32 countries, was open to making acquisitions in Asia, though it doesn't have anything specific to talk about at the moment. (sourced:bloomberg)

ArcelorMittal launches new steel nanotechnology

February 2, 2011
ArcelorMittal said that it has come up with a new kind of steel that the world has never seen before. Thanks to nanotechnology, the company says automakers can now match the weight of aluminum cars, but do it in steel at far lower cost.
It can take 188 pounds out of the body in white of a car but total weight savings could be even bigger.

The body in white or BIW refers to the basic structure of a car, including the doors, hood and deck lid. That's a big number.
By taking so much weight out of the structure, other components such as the powertrain, drive train, brakes, etc can be downsized as well. In other words, the total weight savings could be even bigger.

ArcelorMittal is already showing this new kind of steel to automakers. It isn't yet ready to publicly divulge any of the technical aspects of the steel or how it's using nanotechnology to make it. The company says we're still two to three years away before we get those kinds of details. And that's about the time we'll see this steel show up in production. No word yet on which car company may be the first to use it, but the rumor on the street is that Ford is all over this technology.

The nano steel itself is not inherently lighter, but it's so strong that automakers can use thinner gauges and that's where part of the weight savings comes from. Another part of the weight savings comes from not having to use additional brackets, gussets or panels to strengthen the structure.

For example, A pillars are becoming so big these days due to roof crush standards that they are actually becoming a safety hazard. The fat A-pillars can partially block your view to side traffic or pedestrians. But with this nano steel, A pillars could be made much thinner with no sacrifice to structure or safety.
Nor is this steel cheaper than other grades of steel. In fact, it's probably a little bit more expensive. But by eliminating all those brackets and extra panels, the total tooling cost of a car goes down, and that's where the costs savings comes from.
To get the maximum 188 pound reduction in the BIW, an automaker would have to design in the nano steel's capabilities using a clean sheet approach. But ArcelorMittal says that some applications, especially cross members, lend themselves to running changes on existing designs.

The nano steel does require a newer manufacturing technique called hot stamping. That's where automakers heat up the steel blanks that go into a stamping press to the point where they're literally glowing red. Then they feed the red hot blanks into a press and stamp them into body panels. Heating up the steel makes it much more pliable and enables it to be formed into more complex shapes. Actually, this is a fairly common process already in use today, used to form the high-strength steels that have been available for the last decade and a half. So, while the nano steel requires hot stamping, it's not as if automakers need to make a big investment in manufacturing technology.

It's very impressive to see the steel industry delve into new technology to keep its product relevant. Aluminum, magnesium and composites definitely pose a competitive threat to steel. But they're also considerably more expensive, are not as easily repaired in most body shops, and require considerably more energy to recycle. That's why they've not found widespread use in cars, or at least not as widespread as steel.

Source: steelguru

India iron ore futures rise a tad; volumes moderate

Wed Feb 2, 2011 8:37 amEST
* Volumes moderate even as trading enters fourth day
* Brokers says getting enquiries from exporters for hedging

MUMBAI Feb 2 (Reuters) The world's first iron ore futures in India rose a tad on Wednesday, tracing gains in the overseas spot market, which hovered near its record high, traders and analysts said.
At 5:00 p.m. on the Indian Commodity Exchange (ICEX), iron ore of 62 percent fines for March delivery was trading 0.85 percent higher at 8,014 rupees per tonne, including freight cost for delivery to northern China.
While on the Multi Commodity Exchange (MCX), the country's largest by turnover, 62 percent fines for February delivery was trading 0.30 percent higher at 7,380 rupees per tonne, free on board.
ICEX, which is part-owned by state-run MMTC Ltd (MMTC.BO), the biggest Indian trader of iron ore, recorded volumes of 20,800 tonnes, down 15 percent from a day ago. MCX volumes were at 1,500 tonnes.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $187.25 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was steady at $185.60.

The trading entered into its fourth day, and have been witnessing moderate volumes since its launch, and analysts said volumes would remain thin until exporters get used to the contract.
"We have been getting enquiries from iron ore exporters. We see potential in these contracts going forward," said Aurobinda Prasad, head of research, Karvy Comtrade.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
India is the world's third-biggest iron ore exporter after Australia and Brazil, but shipments have been hit by an export ban in its southern Karnataka state.
India normally exports around 100 million tonnes of iron ore annually of which around a quarter comes from Karnataka. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil, sourced:Reuters)

Coal Ships Seek to Avoid Path of Queensland Cyclone

February 02, 2011 By Ben Sharples

(Bloomberg) -- Coal ships sailed away from the Queensland coast after ports and rail transport lines were closed as Tropical Cyclone Yasi approached Australia, the biggest exporter of the fuel.
At least 32 vessels have headed out to sea after Hay Point harbor and the Abbot Point export terminal were shut, according to North Queensland Bulks Ports Corp. and Dalrymple Bay Coal Terminal Pty. Yasi, a category five storm, is expected to strike the coast late today, packing winds in excess of 280 kilometers (174 miles) an hour.

“They’ll try and move away from land,” Greg Smith, general manager of operations at the Dalrymple Bay export facility, said by phone today. “Their biggest fear will be getting blown onto some form of shallow, so they’ll probably seek deeper water off the continental shelf, or try and steam as far south, where they’ll be out of reach of the winds.”
BHP Billiton Ltd., Rio Tinto Group and Xstrata Plc are among producers that export through Hay Point, the world’s biggest export harbor for steelmaking coal. Yasi was 445 kilometers east of Cairns at 10 a.m. local time, according to the Bureau of Meteorology. Category five is the highest level in the storm classification system.

About 30 ships were waiting to load at Dalrymple Bay, Smith said. The facility is one of two terminals at Hay Point, about 1,000 kilometers north of the state capital Brisbane, and has combined capacity to export 129 million tons a year.
‘Deeper Anchorages’
“For the safety of the vessels and crew, they are sent to deeper anchorages,” Mary Steele, a Brisbane-based spokeswoman for North Queensland Bulk Ports, said in an e-mailed response to questions today. The company manages Abbot Point, 25 kilometers north of the town of Bowen. Two ships were waiting to load cargoes, Steele said.

Abbot Point has one terminal with an export capacity of 21 million tons a year. It shipped 16.9 million tons and handled 224 vessels in the 12 months ended June 30, 2010, the North Queensland Bulk Ports Corp website shows. Bowen is about 1,100 kilometers north of Brisbane.
QR National Ltd., Australia’s biggest transporter of coal by rail, halted train services on the Newlands line to Abbot Point and the Goonyella network serving Hay Point, Mark Hairsine, a spokesman for the company, said yesterday.

The cyclone, which comes just weeks after the state’s capital Brisbane was hit by the worst flooding since 1974, is “likely to be more life threatening than any experienced during recent generations,” according to the bureau. It is forecast to be more severe than Cyclone Larry, which wiped out most of Australia’s banana crop and devastated sugar cane fields when it struck northern Queensland almost five years ago.
--Editors: John Viljoen, Paul Gordon.

South Africa Wants State to Play Role in Coal Mining

February 02, 2011, 7:40 AM EST
By Mike Cohen

Bloomberg-South Africa’s government wants a state-owned mining company to have coal interests to help ensure power utility Eskom Holdings Ltd. can secure supplies of the fuel, Mineral Resources Minister Susan Shabangu said.
“Coal is a strategic asset,” Shabangu told the McCloskey South African Coal Exports Conference in Cape Town today. “We need to grow our economy, we need energy in general. It becomes important for the state to play a role there. We are looking at 18 months” to clarify the role the mining company would play.

Eskom, which generates 95 percent of power in Africa’s largest economy, has called on the government to develop a coal export policy that will guarantee it sufficient, affordable supplies as exports become more lucrative for producers. BHP Billiton Ltd., Xstrata Plc and Anglo American Plc are among the biggest coal producers in South Africa, which generates about 93 percent of its electricity from the fuel.
“It is not the government’s intention to enter the minefield of specifying all the processes and it is our fervent hope that the industry will recognize the particular challenge and work with us,” Shabangu said. “We reserve the right to take corrective measures should the situation demand it. A balance has to be found between pursuing the principles of free market while taking into account the needs of the country.”
Eskom burned 123 million metric tons of coal in its last fiscal year. Recent floods in Australia have bolstered demand for South African coal, and pushed up international coal prices.

‘Australian Misfortunes’
“Some will see an opportunity of making more money on the back of the Australian misfortunes,” Shabangu said. “That opportunity may very well be a serious threat to our supplies for electricity generation. We will be monitoring the situation closely because we will not allow a situation” that will harm the economy.
Shabangu welcomed a Jan. 31 call by BHP Billiton’s South African energy coal unit for bids to buy prospecting rights over its undeveloped reserves, saying it would help bring new investors into the industry.
South Africa is the world’s seventh biggest coal producer and the fifth biggest exporter of the fuel, government data shows. In 2009, the country produced 249 million tons of thermal coal, 74 percent of which was consumed locally, and had about 30 billion tons of reserves.
--Editors: John Deane, Alastair Reed

Hebei finds coalfield with 3.5 billion tonnest predictive reserves

Tuesday, Feb01, 2011

North China’s Hebei province has discovered a coal deposit with 3.5 billion tonnes predictive reserves within the depth of 2000m, Yanzhao Metropolis reported Jan 30, citing local authorities.
Preliminary exploration showed that the coalfield, located in Guangzong County, Xingtai City, boasts coal reserves up to 800 million tonnes within the depth of 1200-1500m, according to the Xingtai municipal land and resources department.

There are 17 coal-bearing seams in the exploration area, with a total thickness of 17.88m.
The coal types comprise gas coal, fat gas coal and 1/3 coking coal, featuring low to medium ash, low and medium-high sulfur, medium-high and high volatile matter, low phosphorus, and medium and high calorific value, it noted.

Guangzong exploration area is 33km east to Jingguang rail line and 35km west to Jingjiu rail line.

Indian coking coal imports increase in 2010, 33% YoY JUMP

Tuesday, Feb 01, 2011

India imported 36.1 million tonnes of coking coal in 2010, a 33% year-on-year jump, according to The Salva Report.
Australia was by far the biggest supplier of coking coal to the Asian nation, contributing 84% with US imports accounting for 5%, New Zealand 3% and South Africa 2.3%, Salva Reports.

Indian thermal coal imports for Nov dropped to 5.3 million tonnes, from the record 6.4 million tonnes imported in October, according to Salva which said the fall could be attributed to increased domestic production throughout October and the rising cost of imported thermal coal.

Yanzhou Coal wins bid for coal mining rights in Inner Mongolia

Tuesday, Feb1, 2011 By China Knowledge

Yanzhou Coal Ordos Neng Hua Co Ltd, a wholly-owned subsidiary of Yanzhou Coal Mining Co Ltd, recently won the bid for the coal mining rights of the Zhuanlongwan coal mine in Dongsheng coal field in North China's Inner Mongolia Autonomous Region, sources reported.
The subsidiary has entered into a confirmation agreement with the region's Department of Land and Resources and will pay for 7.8 billion yuan for the mining rights.

The Zhuanlongwan coal mine, covering an area of 43.51 square kilometers, has total coal reserves of 548 million tonnes and is designed to produce 5 million tonnes of coal each year.

Bathurst pushes on with NZ coal projectBy

February 1, 2011
BATHURST Resources is moving ahead with efforts to gain resource consents for its plans to mine at the Buller Coalfield on the West Coast of New Zealand’s South Island, after delays following the Pike River coal mine disaster.

Perth-based Bathurst Resources completed the purchase of the Buller coal project from L&M Energy during the December quarter. The total acquisition cost was $US40 million ($40.18m), with two further performance costs of $US40m each when the project moves into production.
In its activities report for the December quarter, Bathurst Resources said its focus for the period had been on completing a definitive feasibility study for the Escarpment and Deep Creek blocks at the Buller project.

The study estimated the capital cost of the Buller project to be about $US50m.
Bathurst Resources is aiming to produce premium hard coking coal from the Buller project in the December quarter of 2011, with production reaching two million tonnes per annum by late 2013.
The company said that in the March quarter, regulatory approvals and consents for the development of the Buller project, as well as the establishment of key contracts for the construction of a coal preparation plant and related facilities, were its key focus.
The start of operations at the Buller project was conditional on receiving resource consents and access and concession permits from the Department of Conservation.
Progress on the applications had been delayed in the wake of the tragedy at Pike River, Bathurst Resources said.
“In early 2011 however, Bathurst resumed discussions with the local communities and regulatory bodies to progress these applications for the Buller project,” the company said.
An explosion at Pike River, also on the West Coast, in November killed 29 men. (Sourced:The Australian)

Indonesia Blocks 3.5 Million Tons of Coal Shipments

February 1, 2011,
Bloomberg, By Bambang Djanuarto and Yoga Rusmana

Indonesia’s government has blocked shipments of at least 3.5 million metric tons of coal since Jan. 15, after a delay in issuing new trading permits, an industry group said.
About 70 vessels, each with a capacity of 50,000 tons, are stuck at ports because surveyors checking shipments won’t allow the exports before traders obtain fresh licenses from the Energy and Mineral Resources Ministry, said Bob Kamandanu, chairman of the Indonesian Coal Mining Association.
“Some traders have declared force majeure because of the permit issue,” Kamandanu told reporters in Jakarta today, without identifying them. “More shipments will be halted as a lot more ships are entering the ports.”

Indonesia’s mining law of 2009 requires traders to convert old permits into new trading licenses issued by the Energy and Mineral Resources Ministry before they ship products overseas, said Djunaedi, head of mining exports at the Trade Ministry said Jan. 26. The ministry halted the process of giving out new licenses while waiting for the ministerial decree to be issued, Djunaedi, who uses one name, said at the time.
Alberth Yusuf Tobogu, export director of mining and industry products at the Trade Ministry, and Djunaedi didn’t answer two calls to their mobile phones seeking comment.
Force majeure is a legal clause that allows producers to miss deliveries because of circumstances beyond their control.
Indonesia, the world’s largest thermal coal exporter, has since 2008 required all exports of coal, metal ores and concentrate to be verified by government-appointed surveyors to prevent illegal shipments of commodities.

Indonesian Export Jumps 35.38% in 2010

Tuesday, 01 February 2011 18:08
Indonesian export totaled US$157.73 billion in 2010, jumped 35.38% from US$116.51 billion in 2009. The export made its record during the history in December 2010 which totaled US$16.8 billion.
"Export continues rising and to record new high," BPS Chairman Rusman Heriawan told in press briefing today.

Oil and gas export totaled US$129.68 billion, mainly supported by mineral fuel mainly coal which accounted for US$18.73 billion and fat and vegetable oil which totaled US$16.29 billion.
The main contributors for export by countries are Japan (US$16.5 billion), China (US$14.07 billion) and United States (US$13.3 billion) which accounted for 33.85% of total export. Export to European union reached US$17.07 billion.

Meanwhile, import surged 40.05% to reach US$135.61 billion in 2010, compared to US$96.83 billion in 2009. Import of non oil and gas totaled US$108.24 billion.
The main contributors for import by countries are China (18.19%), Japan (15.62%), Singapore (9.29%) and European Union (9.02%).
For 2010, Indonesia recorded surplus of US$22.13 billion. (sourced:Theindonesiatoday.com)

S. Sumatra coal railway to be completed on schedule

Tue, 01 Feb.2011

The Jakarta Post reported that, despite land acquisition problems, state coal mining company PT Bukit Asam is upbeat that the development of a railway track connecting Tanjung Enim and Tanjung Api Api port in South Sumatera will be completed on schedule in 2014.
Bukit Asam president director Sukrisno acknowledged that resistance during the land acquisition processes might affect the progress of the railway’s development, but he claimed that his company had taken all necessary measures to ensure that the project was finished on time, as quoted by The Jakarta Post.

“We’ve cooperated with local administrations and speak heart-to-heart with people living in the region. We believe that solutions will be reached in the near future,” he told House of Representatives Commission VII overseeing energy and mining at a hearing session on Monday.
Sukrisno said that people were afraid of losing sources of income if they moved to other locations prepared by the company and local administrations. To address their concerns, he said that Bukit Asam ensured it would assist people in creating alternative sources of income in their new places of residence.

“We’ll work together with local administrations to build not only their new homes, but also their livelihoods,” Sukrisno said, adding that the relocations would begin in March this year.
The US$1.65 billion (around Rp 15 trillion) railway track would be expected to start operations in 2014, he said. (source:TheJakarta Post)

ICEX, Iron ore future contract on Tuesday, 01, Feb 2011

Commodity............................Expirty..................LTP.................% Change
IRONORE62FINES..............29APR 2011........7720.00............ 1.07%
IRONORE62FINES..............31MAR-2011.......8126.50........... 1.04%
As On :01-Feb-2011 07:35 PM IST

(Know latest updated at :http://www.icexindia.com/)

Posco says no plan to develop coal mine in Mozambique

Tueday, 01, February 2011
By: Reuters
SEOUL– South Korea's POSCO , the world's No.3 steelmaker, said on Tuesday that it does not plan to develop a coal mine in Mozambique, denying its statement over the weekend for such a plan with Vale .
"We don't have any plan to develop a coal mine in Mozambique with Vale and our earlier statement had factually wrong information," POSCO said in a statement on Tuesday.
POSCO, which aims to double raw material self-sufficiency to 50% by 2014, has earmarked 700-billion won ($627-million) in raw material investment this year.

Last week, POSCO signed a memorandum of understanding with Anchor in Zimbabwe to build a joint mining venture to develop chrome, coal and other raw materials. (sourced:Reuters)

Xstrata 2010 coal output down 6 pct, copper steady

* Annual coal output down 6 pct to 79.9 mln tonnes
* Mined copper up 0.7 pct, copper cathode off 1.6 pct
* Coal and copper Xstrata's most profitable products
LONDON Feb 1, 2011 (Reuters) 8:03am GMT

Mining group Xstrata Plc (XTA.L) released annual production and price data on Tuesday.
Details of main products are below in tonnes, except coal in millions of tonnes.
Commodity........ Y-Y Pct(%)........Chang FY 2010......FY 2009
Coal*........................ -5.7...................... 79.9................................ 84.7
Ferrochrome........... 48........................1,165,000...................... 786,000
Copper cathode....... -1.6...................... 715,499......................... 727,050
Mined copper.......... 0.7.........................913,469..........................906,898
Mined nickel............ 6.3..........................60,670............................57,052
Zinc metal................ - 7.2..................... 765,867............................ 825,208
Zinc concentrate...... -1.0......................1,022,252.........................1,032,755
*Coal figure excludes production from Prodeco
Details of selected prices are below in dollars per tonne, except ferrochrome in cents per pound.
Commodity................... Y-Y Pct(%)........Chang FY 2010.....FY 2009
Australian thermal coal......... 6.7........................ 85.70..................80.30
S.African thermal coal........... 9.3........................ 74.40..................68.10
Americas thermal coal........... -1.2........................ 72.60..................73.50
Australian coking coal............ 41........................ 204.30..................145.00
Ferrochrome........................... 46........................ 124.30..................85.00
LME copper............................. 49........................ 7,681.................... 5,150
LME nickel............................... 48........................ 21,809.................. 14,712
LME zinc.................................. 30........................ 2,159.................... 1,659
(Reporting by Julie Crust; editing by Paul Hoskins, sourced:reuters)

Sarolangun coal mine in Jambi acquired PT Aneka Tambang Tbk (ANTM)

Jakarta, APBI-ICMA: 01/29/2011
Citing news reported that PT Aneka Tambang Tbk (ANTM) fulfill his ambition of coal business. Emiten yang dikendalikan pemerintah ini telah mengakuisisi tambang batubara Sarolangun di Jambi. Issuers that it has acquired the government-controlled coal mines Sarolangun in Jambi. ANTM melakukan akuisisi tersebut melalui anak perusahaannya, PT Indonesia Coal Resources (ICR). ANTM make the acquisition through its subsidiary, PT Indonesia Coal Resources (ICR).

"Nilai akuisisi Rp 92,5 miliar. Seluruh dana pembelian berasal dari kas ICR sendiri," kata Sekretaris Perusahaan ANTM Bimo Budi Satriyo. "The acquisition of USD 92.5 billion. All funds derived from cash purchases ICR itself," said Ben ANTM Company Secretary Budi Satriyo. Dia menambahkan, kas ICR yang digunakan untuk akuisisi merupakan modal dasar yang disetor ANTM. He added, ICR cash used for acquisitions is a paid-up capital of ANTM. Bimo menuturkan, tambang Sarolangun termasuk kategori greenfield alias belum pernah dikembangkan. Ben said, the mine Sarolangun including greenfield aka category has never been developed. Sorolangun mulai berproduksi sejak Juni 2010. Sorolangun started production since June 2010. Selama semester kedua tahun lalu, volume produksi batubara di tambang Sarolangun mencapai 200.000 ton. During the second semester last year, the volume of coal production in mines Sarolangun reached 200,000 tons. ICR menargetkan volume produksi di tambang tersebut mencapai 41.667 metrik ton batubara per bulan. ICR target volume in the mine production reached 41,667 metric tons of coal per month. Artinya untuk tahun 2011, Sarolangun ditargetkan memproduksi hingga 500.000 ton. This means that for 2011, targeted Sarolangun produce up to 500,000 tons. Cadangan batubara di tambang Sarolangun diperkirakan 8,25 juta ton. Sarolangun mine coal reserves estimated at 8.25 million tonnes. Batubara yang ditambang di Sarolangun termasuk batubara dengan kadar kalori menengah. Coal is mined in Sarolangun including coal with high calorific content. Meski baru diakuisisi, hasil produksi batubara dari Sarolangun sudah memiliki pembeli. Although the newly acquired, the result of coal production from Sarolangun already have a buyer. "Saat ini penjualan batubara Sarolangun dilakukan ke beberapa konsumen dalam negeri dan ke India," tutur Bimo. "We have done Sarolangun coal sales to several customers in the country and to India," said Ben.

Sebagai pemegang saham pengendali tambang Sorolangun, ICR akan bertanggung jawab penuh pada pengurusan bisnis batubara. As the controlling shareholder of mine Sorolangun, ICR will take full responsibility in the maintenance of the coal business. Bimo menambahkan pembentukan ICR merupakan bagian dari strategi pengembangan bisnis ANTM. Ben added the establishment of ICR is part of the business development strategy ANTM. Batubara yang dihasilkan dari tambang Sarolangun akan digunakan untuk bahan bakar pembangkit listrik yang akan dibangun ANTM di fasilitas produksi feronikel. Coal produced from the mine Sarolangun will be used to fuel power plants to be built ANTM in ferronickel production facility. "Namun kami akan tetap fokus ke produksi nikel dan emas," ujar nya. "But we will remain focused to the production of nickel and gold," he said.
(Source:www.kontan.co.id)

Some Indonesia coal traders declare force majeure on rule change-assoc

JAKARTA Feb 1,2011
(Reuters) Some Indonesian coal traders have declared force majeure after a trade rule change, with around 60-70 vessels stuck in various ports and 3.5 million tonnes unable to be shipped, the chairman of the Indonesian Coal Mining Association said on Tuesday.

It was not immediately clear which trading companies and which buyers were affected, Bob Kamandanu told reporters, after a new trade regulation caused the delays in the world's top thermal coal exporter.
The problems have come after the trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to traders who are in the process of reapplying for trading permits under a new coal and mining law system. The surveyor reports are documents required for shipping the fuel.
The rule appeared to affect traders who do not own mines and buy blended coal, or aggregate coal, from various small miners, as well as traders who buy coal in barges. It was not clear which firms had declared force majeure.

"The vessels have been stuck in various coal ports around the country. Stockpiles have been building up because the coal can't be loaded to vessels," Bob Kamandanu said.
Most of the vessels were shipping the coal to buyers in India and China, he said.
Indonesia has required exports of mining products including coal and tin to be checked by surveyors before shipping them out as the country seeks to keep illegal mining in check and boost revenue from the sector.

"They have submitted requests for processing permits to the energy and mines ministry since three months ago but with no response," Kamandanu told reporters.
Surveyor reports show the origin of the cargoes and are used to calculate royalties.
The trade rule so far has not affected shipments from coal firms such as top producers Bumi Resources and Adaro Energy , as surveyors are still allowed to issue reports for coal exports from producers.
But it could affect the country's production if the delays run for a longer period, said Kamandanu.
The delays come as Indian traders and end-users are close to resuming prompt buying on thermal coal after a break of several months, some of India's largest traders said last week.
Australia's thermal coal prices on the globalCOAL weekly index, a benchmark for Asia, closed at $127 per tonne for the week to date on Monday, up from $124.25 a week earlier.(Reporting by Alfian; Writing by by Fitri Wulandari; Editing by Neil Chatterjee, sourced: reuters)

Iranian steel output in first 8 months surges

Tuesday, 01 Feb 2011
According to the Iranian Mines and Mining Industries Development & Renovation Organization, during the first 8 months of current Iranian year that ends on November 21st 2010, around 7.523 million tonnes of rolled steel products produced in IMIDRO's affiliated companies, up from 6.597 million tonnes during the same period of last year.

In the first 8 months of current Iranian year, about 1.309 million tonnes I Beam, 2.143 million tonnes debar, 3.779 million tonnes HRC, 0.220 million tonnes wide Plate, 0.039 million tonnes coil, 0.020 million tonnes pipe and around 0.011 million tonnes of other steel products rolled in IMIDRO's affiliated companies.

Mobarakeh steel by production of 3.026 million tonnes of HRC in this period was known as the countries biggest sheet producer. During this period around 1.826 million tonnes of long products and sections were produced in Esfahan Steel Company.
About 7.581 million tonnes of semi finished products also were made in IMIDRO's affiliated companies in the first 8 months of current Iranian year.

In the last Iranian year which ended at March 20th 2010, about 10.236 million tonnes of steel products were rolled in IMIDRO's affiliated companies. Because of government's plan to increase steel production, ongoing steel projects and remaining months to the end of year, it is expected that Steel production in Iran by the end of this year would surge that of last year.
(For more information visit www.irsteel.com)