Vale sells 80 pct of Q4 iron ore at spot prices - Report

Friday, 17 Feb 2012

An executive of Vale said that Vale, the world's largest iron ore producer, made 80% of sales of the mineral in the fourth quarter at spot prices.

(Sourced from Reuters)

NMDC May Pay $300 Million for Mozambique, Russian Coal Mines

Thu, January 05, 2012

NMDC Ltd., India’s largest iron ore producer, plans to acquire two coking coal mines in Mozambique and Russia for about $300 million to feed its planned steel plants in India.

Talks are on to acquire a mine with 360 million metric tons of deposits in Mozambique’s Tete province and an 80 million-ton mine in Russia’s Kemorovo region, Chairman Narendra Kumar Nanda said today in a phone interview. The company is also considering buying an iron ore and manganese mine in Brazil’s Amapa province, he said, without elaborating.

Lack of access to local mines and rising global prices of coking coal are eroding profits at Indian steelmakers, spurring them to look for acquisitions overseas. NMDC, which has 210 billion rupees ($4 billion) of cash in hand, is building a 3 million ton steel plant in central India and a similar-sized plant jointly with Russia’s OAO Severstal in southern India.

“Considering its cash reserves, such acquisitions are like baby steps for NMDC,” said Rahul Jain, a Mumbai-based analyst with RBS Equities India Ltd. “The global slowdown has lowered asset prices and this is a time when the company should approach bigger targets.”

The shares fell as much as 1.5 percent to 169 rupees and traded at 170.05 rupees as of 12:34 p.m. in Mumbai. The stock has declined 39 percent in the past year, compared with a 21 percent drop in the benchmark Sensitive Index.

“We want to be prepared when our steel mills start operating,” said Nanda, who took charge on Jan. 1. “We can bring some coal from these mines to our plants and sell the rest for hedging purposes.”

NMDC expects to appoint advisers by the end of this month to carry out the due diligence for the assets, he said. The company recently ended acquisition talks for Greystone Mineracao do Brasil’s iron ore mine in Brazil and a coal mine in Russia, Nanda said.

NMDC said in October it signed an accord to acquire a 50 percent stake in Australia’s Legacy Iron Ore Ltd. for A$18.9 million ($19.5 million), its first acquisition overseas.

(sourced Business Week)

Usiminas expands iron ore reserves with three acquisitions

Tuesday, 29 November 2011

In a regulatory filing Monday, Belo Horizonte, Brazil-based flat rolled steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas) said that it will acquire Brazilian iron ore producer Mineracao Ouro Negro SA for US$367 million. Mineracao owns approximately 200 million tons of iron ore reserves.

Additionally, Usiminas' subsidiary Mineracao Usiminas SA has completed negotiations for the acquisition of iron ore miner Mineracao J. Mendes Ltda, SOMISA--Siderurgica Oeste de Minas Gerais Ltda and Global Mineracao Ltda with an additional payment of US$100 million. The acquisition agreement previously began in February 2008.

Mineracao Usiminas SA has also signed an agreement with Ferrous Resources do Brasil SA for the companies to jointly explore Ferrous' Santanese mine in Southeast Brazil.

Tags: iron ore , hrc , crc , galvanized , coated , raw mat , flats , Brazil , South America , investments , M&A , steelmaking , mining

Sourced:SteelOrbis

India's Sesa Goa says mining ban to hit performance

MUMBAI (Reuters) - India's Sesa Goa Ltd , owned by London-listed Vedanta Plc , said on Saturday its performance would be affected by an order from the country's top court extending a ban on mining to two more districts of a key iron ore producing state.

The Supreme Court on Friday extended the ban to Tumkur and Chitradurga districts of the southern Indian state Karnataka, Anita Shenoy, counsel for the Karnataka state government, told Reuters.

The two districts account for about seven percent of India's estimated 213 million tonnes of annual iron ore output, and the ban could hit exports from the world's third-largest supplier of the steel-making material.

Sesa Goa said in a statement the mining activities at the company's Chitradurga mine would have to be stopped with immediate effect as a result of the court order and that would "adversely affect" the performance of the company.

(sourced Reuters)

Assmang Khumani iron ore mine expands training simulator use

Saturday, 27 Aug 2011

Mineweb.com reported that Assmang Khumani Iron Ore surface mining operation will be significantly improving their capability to enhance operator competency with the acquisition of two CYBERMINE4 mining simulators from South African mining simulator specialist, ThoroughTec Simulation. The Khumani mine has also purchased interchangeable cabs simulating Komatsu's 860E AC Haul Truck and PC5500 Hydraulic Face Shovel. The two Thoroughtec simulators will join the company's existing single unit purchased a few years back from Australia's Immersive Technologies.

The new units will not only enable Khumani's HR, Engineering and Mining management to train on loading, hauling and digging, but also on more advanced equipment like drill rigs in the near future. ThoroughTec's attentiveness in supporting customers, along with their flexible approach to their development schedule and low cost of ownership model and value for money service plans were accredited as key differentiators with their competitors.

Mr Mark Walker ThoroughTec Simulation's executive director of mining & construction said that "Assmang Khumani's Iron Ore operation selection of ThoroughTec Simulation is a significant validation of our new 4th generation CYBERMINE4 mining simulators leadership in the market, with the recognition that military level simulators in the mining industry is the future and it further emphasizes our dominance in the Northern Cape area in South Africa."

ThoroughTec Simulation's CYBERMINE4 is the industry's new fourth generation mining and only dual role (interchangeable between surface and underground) simulator. It is upgraded with many new features including a full 360 panoramic display, enhanced reporting software, and two HD instructor screens in an enlarged classroom environment.

(sourced Mineweb)

Vietnam’s Thachkhe Iron Ore Company to restructure its joint venture partners lacking fund

Friday, 22 July 2011

Nguyễn Tấn Dũng,the premier of Vietnam, demanded Vietnam's Thachkhe Iron Ore Company (TIC) to restructure its joint venture partners lacking fund to start iron ore production project 400 kilometers away from the south of Ha Noi.

It is learned that construction company SongDa, Tele-Communications Company VNPT, shipbuilding company Vinashin and bank BIDV are ordered to quit from the project. VNPT holds 4% shares of TIC, and other companies hold 5% each. Others stockholders will increase fund investment to resume the project.

(sourced coalspot)

BC Iron to challenge withdrawal of Hong Kong takeover bid

The W. Australian junior has applied to Australia's Takeovers Panel to challenge the validity of Regent Pacific's decision to terminate a takeover bid for the company

By Ross Louthean
Mon, 21 Mar 2011

PERTH - BC Iron (ASX: BCI) said today it had written to Regent rejecting its "purported" termination of the Scheme Implementation Agreement (SIA) relating to its intention to takeover BC Iron, and requesting that it be withdrawn.

BC Iron's managing director Mike Young said the company intends to file an application with the Takeovers Panel shortly, seeking a declaration of "unacceptable circumstances and orders requiring it (Regent) to proceed in accordance with the SIA."

Young said the company remains committed to ensuring all its shareholders have an equal opportunity to consider the merits of the scheme of arrangement in a fully informed manner.

Prior to the purported termination of the SIA, the Scheme Booklet and associated documents were well progressed.

Young said should the Takeovers Panel decide to intervene and provide the requested relief, BC Iron will resume the process of finalising the Scheme Booklet and Independent Expert's Report and, as a first step, will be in a position to promptly lodge the Scheme Booklet with ASIC (Australian Securities & Investments Commission).

When the original bid by Hong Kong-based Regent was made BC Iron directors recommended the bid. The takeover would have valued BC Iron at A$345 million (US$346.7 million).

BC Iron had been placed in a trading halt last Thursday after its share price dipped more than 4% to around A$2.54 (US$2.55) after Regent Pacific confirmed it was dropping the bid.

The company became an iron ore producer last month when the first shipment of its ore from Nullagine in Western Australia's Pilbara was shipped from Port Hedland to China in its 50/50 joint venture with Fortescue Metals Group. Fortescue provides the rail and port infrastructure.
(sourced mineweb)

Iron Ore-Shanghai rebar sags on demand view, China tightening

Mon Mar 21, 2011 2:57am GMT

By Manolo Serapio Jr

SINGAPORE, March 21 (Reuters) - Shanghai steel rebar futures fell more than 1 percent on Monday after China further tightened the amount of funds banks can lend and on demand uncertainty.

The decline in steel prices in China, the world's biggest producer, could stall a nascent recovery in iron ore prices which rose for a second day on Friday after declining for about a month.

"The rise in steel prices last week was pushed by traders, not end-users. We haven't really seen much cargo from our suppliers," said an iron ore trader in China's eastern Shandong province.

"We need to wait and see whether real demand will pick up or not this week. This is quite essential to determine which direction the iron ore market will go."

Adding to demand concerns, China on Friday again raised banks' required reserves, the latest installment in its monetary tightening cycle that many had thought would be put on hold after Japan's devastating earthquake.

"It's getting more and more difficult to get a loan from the bank. This will definitely impact the market," the trader said.

The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange fell 1.4 percent to 4,691 yuan a tonne by 0241 GMT, dropping for a third day in a row. The contract hit a one-week low of 4,684 yuan earlier.

Key iron ore indexes, based on spot transactions in China, rose on Friday.

Platts' 62 percent iron ore index IODBZ00-PLT jumped $2 to $168.50 a tonne, including freight, and The Steel Index's 62 percent benchmark .IO62-CNI=SI gained 80 cents to $164.70.

Metal Bulletin's 62 percent gauge .IO62-CNO=MB rose 81 cents to $164.30.

The indexes, which global miners use in setting quarterly contract rates, had slid 15 percent since hitting record highs near $200 in mid-February before regaining some ground last week as some Chinese steel mills replenished dwindling stockpiles.

Top iron ore miner Vale said on Friday it will stick with quarterly pricing for sales to steelmakers, even as rival BHP Billiton sells some of its material on a monthly basis and would like its contracts to move even closer to daily spot prices. (Reuters)

Tags :BHP Billiton, spot prices, 63.5% Indian fines,

Middle East crisis wont have major impact on its business - Vale

Sunday, 27 Feb 2011

Dow Jones reported that Brazilian mining company Vale SA said that its business won't be greatly affected by the current political and social crisis in parts of the Middle East.

Mr Jose Carlos Martins executive director at Vale said that "Only 3% of our sales are to the Middle East. Vale notched up operating revenues of USD 46.5 billion in 2010."

Mr Martins said that a major Egyptian client continues to produce normally, although operations at a major Libyan client are at a standstill.

Vale earlier this month started up a new 9 million tonnes a year iron ore palletizing operation in Oman to supply Middle Eastern steelmakers with pellets, a semi processed and value added iron ore product. (sourced: Dowjones)

ASIC wins FMG appeal

Saturday, 19 Feb 2011

The West Australian reported that the Federal Court agreed with the Australian Securities and Investments Commission's argument that Justice John Gilmour erred in finding Mr Forrest and his Fortescue Metals Group did not act dishonestly when they announced they had signed Chinese partners to build their Pilbara project.

Billionaire Mr Andrew Forrest faces being banned from running the company he turned into the country’s third biggest iron ore producer after the nation's corporate watchdog won its Federal Court appeal.

ASIC successfully argued that Mr Forrest deliberately engaged in misleading and deceptive conduct by making false, misleading and exaggerated statements to the ASX and the media about the nature of framework agreements signed in 2004 with three Chinese companies.

The agreements concerned the construction and financing of a mine, railway and port in the Pilbara. ASIC argued that Fortescue and Mr Forrest falsely portrayed the agreements as binding.

A judge had dismissed the watchdog’s claims in December 2009 following a trial in the Federal Court. But ASIC appealed against the finding in February last year, arguing the case had raised important issues that needed to be heard by an appeals court.

The six day appeal was heard in November last year before the Full Bench of the Federal Court, comprising Chief Justice Patrick Keane, Justice Arthur Emmett and Justice Ray Finkelstein.

Mr Forrest was not in court to hear the decision, which followed an appeal hearing in November after Justice Gilmour's 2009 judgment.

FMG and Mr Forrest have always denied any wrongdoing in the case.

(Sourced:thewest.com.au)

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.