Heavy rains in Pilbara adversely affect Fortescue’s iron ore operations

Friday, 04 March 2011

Australian iron ore producer Fortescue Metals Group Limited (Fortescue) has announced that continued and heavy rainfall across the Pilbara region of Western Australia is impacting the company's mining operations.

According to a company release, the sustained wet weather events have caused significant flooding across the Pilbara resulting in extended access road closures and air access restrictions to Fortescue's mining operations, disrupting production.

Fortescue now estimates iron ore production of 8.5-9 million mt in the first quarter of 2011 down 500,000 mt compared to the previous guidance, assuming a return to normal weather conditions.

Fortescue is working to maximize production throughout the remainder of the quarter, the company said.

WISCO inks cooperation deal with ADI on Lac Otelnuk iron ore project

Wednesday, 16 February 2011 13:34:25

Major Chinese steelmaker Wuhan Iron and Steel Group Corp. (WISCO) has announced that on February 15 it signed a cooperation agreement with Canadian iron ore company Adriana Resources Inc. (ADI) for the development, construction and operation of the Lac Otelnuk iron ore project in Quebec, Canada. In January this year, WISCO and ADI signed a binding framework agreement according to which WISCO will hold ADI's interests in the Lac Otelnuk and December Lake iron ore properties in Northern Quebec.

ADI also has iron ore resources in Brazil and Canada. The Lac Otelnuk project has indicated iron ore reserves of 4.29 billion mt and inferred reserves of 1.97 billion mt (grading at about 29 percent Fe), according to ADI's website.

Tags: iron ore , raw mat , China , Canada , Far East , East Asia and Pacific , North America , steelmaking , mining , WISCO , Pellets , Fine ore

Xstrata’s profit increases by 86 percent in 2010

Tuesday, 08 February 2011
On February 8, Anglo-Swiss miner and coking coal producer Xstrata Plc issued its financial results for 2010, reporting that the restructuring activities undertaken during 2009 positioned it to benefit from a more favorable operating environment.
The attributable profit of Xstrata was $5.15 billion in 2010, recording an increase of 86 percent year on year thanks to stronger commodity prices. Its revenue saw an increase of 34 percent in 2010, increasing from $22.7 billion in the previous year to $30.5 billion.
Xstrata said it plans to pay a final dividend of 20 cents per share, reflecting a return to pre-crisis levels and confidence in the medium-term outlook.
"Looking ahead, leading indicators suggest that the US economy continues to find a reasonably solid track for recovery. In the eurozone, January data for the manufacturing and services industries reveal the fastest pace of expansion in nine months. Developing economies and China in particular appear set to continue to achieve wholly respectable high single-digit growth rates in 2011, albeit below 2010 levels due to the impacts of inflation and the proactive actions by governments to contain economic growth to within manageable levels," Xstrata CE Mick Davis said.
Tags: coking coal , raw mat , UK , Switzerland , Europe , Non-EU Countries , European Union , mining , fin. Reports , Xstrata(sourced:steel orbis)

Rio Tinto approves $277 million expansion for Iron Ore Company of Canada

Wednesday, 09 February 2011
Anglo-Australian mining conglomerate Rio Tinto approved a US$277 million investment (Rio Tinto share US$163 million) in the second phase of Rio Tinto's three-phase project that will ultimately raise its 59 percent-owned Iron Ore Company of Canada's (IOC) concentrate production capacity by 40 percent to 26 million metric tons (mt) per year.

The US$277 million investment will increase IOC's spiral and magnetite concentrate production capacity by an average of 1.3 million mt annually to 23.3 million mt annually.

Rio Tinto's chief executive Sam Walsh commented that the new investment is an important development, especially considering growing global demand. "Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC's concentrate is well placed to complement the increasing use of lower-quality ore to meet that demand," added Walsh.
Tags: iron ore , raw mat , Australia , Canada , UK , Oceania , North America , Europe , mining , production , Rio Tinto
(sourced:steelorbis)

Anglo's American's Kumba Iron Ore to Object to ICT Mine Right Application

By Carli Lourens - Jan 14, 2011

Kumba Iron Ore Ltd., a unit of Anglo American Plc, said it will object to South Africa’s acceptance of an application by Imperial Crown Trading Ltd. for a 21.4 percent mining right at its Sishen mine in South Africa.
The application was submitted on Dec. 9 and accepted on Dec. 23, Pretoria-based Kumba said in a statement today. The acceptance means the application will now be evaluated before a decision is made about granting the mining right, Kumba said.
The company, the world’s fourth-largest supplier of seaborne iron ore, is already challenging the government’s earlier award of a partial prospecting right over the mine to Imperial in the North Gauteng High Court in Pretoria. Imperial’s owners include Jagdish Parekh, who is investing in ArcelorMittal South Africa Ltd. together with South African President Jacob Zuma’s son, Duduzane.
“This means that this whole issue that we had hoped would have been put to bed already is just carrying on,” Ron Klipin, an analyst at SA Stockbrokers, said by phone from Johannesburg.
Kumba’s Sishen Iron Ore Co. “does not believe that it was lawful for the Department of Mineral Resources to have accepted ICT’s application, pending the High Court Review initiated in May 2010, over the prospecting right awarded to ICT,” it said.
Appeal the Decision
SIOC, part-owned by Exxaro Resources Ltd., is in the process of objecting to the application and will launch an appeal against the decision, Kumba said.
ArcelorMittal South Africa, controlled by the world’s largest steelmaker, previously held the partial right over Sishen mine, facilitating iron ore supplies at below-market prices. Iron ore is a steelmaking ingredient.
Kumba Chairman Lazarus Zim resigned last month to avoid a conflict of interest as he sets up a steel company to rival ArcelorMittal South Africa. Zim had earlier excluded himself from board decisions over Kumba’s Sishen deposit because of his relationship with ICT’s Parekh. Parekh’s mobile phone was switched off when Bloomberg News called seeking comment.
Zingaphi Jakuja, spokeswoman for the Department of Mineral Resources, said she couldn’t immediately comment when Bloomberg News contacted her on her mobile phone.
Kumba was unchanged at 450 rand at the 5 p.m. close in Johannesburg, giving it a market value of 145 billion rand ($21 billion).
ArcelorMittal, based in Luxembourg, is the world’s largest steelmaker.

Source: Bloomberg

China’s Inner Mongolia region produces 782 million mt of coal in 2010

Friday, 14 January 2011 14:26:40 (GMT+2)

According to the Coal Mine Security Supervision Bureau of China's Inner Mongolia Autonomous Region, in 2010 the region produced 782 million mt of coal, an increase of 181.4 million mt compared to the previous year, thus becoming the first region in China to produce more than 700 million mt of coal in a single year.
There are currently over 1,000 coal mines in China's Inner Mongolia Autonomous Region. During China's 12th five-year plan period (2010-15), the Inner Mongolia government plans to give priority to the construction of several major coal projects, including the Eerduosi, Xilinguole and Hulunbeier projects.
Source: steelorbis.com