Mon Mar 28, 2011 1:04pm GMT
JOHANNESBURG (Reuters) - South Africa's iron ore industry has the potential to more than double output in the next 10 years under suitable growth conditions, Kumba Iron Ore said in a report issued on Monday.
The report by Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American, cited conditions such as necessary transport logistics and a viable market for the off-take of iron ore and steel products.
The company also said the country would need a suitable regulatory environment that encourages market participants to make the necessary investments.
"These growth projects are capital intensive and will not be economically viable without market-related iron ore prices (at export parity price levels)," the company said.
Kumba's iron ore production rose 3 percent to 43.3 million tonnes in 2010.
Kumba has been at loggerheads with ArcelorMittal South Africa, a unit of the world's biggest steelmaker, over prices for the steel-making ingredient since February last year.
A long-term deal, under which Kumba sold ore to ArcelorMittal SA at a discount, lapsed after the steelmaker failed to convert its rights over a stake in Kumba's Sishen mine into a new right as required by law.
The government now wants at least 21.4 percent of iron ore output from Kumba's Sishen mine to be sold at cost plus 3 percent to help the domestic steel industry.
But Kumba said in the report that discounted iron ore prices were unlikely to lift the local steel sector.
"Iron ore typically contributes less than 1 percent to the costs of these end products and is largely insignificant in its impact on overall costs of downstream products," Kumba said.
It added: "Even if iron ore is discounted significantly, this has an immaterial impact on the cost of most downstream users."
Pending a resolution of the dispute, Kumba and ArcelorMittal SA reached an interim agreement valid until the end of July this year for ArcelorMittal to source iron ore from Kumba at about half of the market price.
ArcelorMittal SA has said it expects the arbitration to be heard early next year and that it will negotiate with Kumba to extend the interim pricing deal until the dispute is resolved.
The government granted Imperial Crown Trading a prospecting right over the stake in Kumba's mine for which ArcelorMittal previously held a mining right, a decision which Kumba is contesting.
Showing posts with label production. Show all posts
Showing posts with label production. Show all posts
Monday, March 28, 2011
Saturday, March 5, 2011
TMK IPSCO expands pipe threading line at Ohio facility
Saturday, Mar05, 2011
Downers Grove, Illinois-based steel energy pipe manufacturer TMK IPSCO announced Friday that its Premium pipe threading facility in Brookfield, Ohio has begun a two-week commissioning phase for its second thread line, which will allow the facility to thread more and larger pipe products.
The second thread line will allow the Brookfield plant to thread pipes up to 13 5/8" in diameter, up from the previous size range of 4"-7 5/8" under the first thread line.
"What this means for the industry is that we are now able to provide an even quicker response to the growing needs of the Marcellus drilling region," said Piotr Galitzine, chairman of TMK IPSCO. "Marcellus will play a major role going forward as natural gas finds new uses in electricity generation and municipal transportation."
The second thread line will allow the Brookfield plant to thread pipes up to 13 5/8" in diameter, up from the previous size range of 4"-7 5/8" under the first thread line.
"What this means for the industry is that we are now able to provide an even quicker response to the growing needs of the Marcellus drilling region," said Piotr Galitzine, chairman of TMK IPSCO. "Marcellus will play a major role going forward as natural gas finds new uses in electricity generation and municipal transportation."
Friday, March 4, 2011
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.
Renco Group: RG Steel to become fourth-largest flat rolled steel producer in US
Fri, Mar04, 20100
US-based private investment holding company Renco Group has announced that, following the acquisition of three steel companies currently owned by Russian steelmaker Severstal estimated at $1.2 billion, its newly-formed subsidiary RG Steel will become the fourth-largest flat rolled steel producer in the US.
Accordingly, in addition to Severstal's Sparrows Point, Warren and Wheeling facilities, RG Steel will acquire a 50 percent ownership interest in Mountain State Carbon LLC, a cokemaking facility in Follansbee, West Virginia, and Ohio Coatings Company, based in Yorkville, Ohio. RG Steel will receive one half of the coke output from Mountain State Carbon and will continue its long-standing relationship with Ohio Coatings Company. The purchase of these assets will provide RG Steel with approximately 7.5 million mt of annualized steelmaking capacity.
"The formation of RG Steel will create a dynamic, service-oriented company with strategically located facilities," Renco Group's president Ari Rennert stated.
RG Steel will be headquartered at Sparrows Point, Maryland. Completion of the sale is expected in March 2011, pending regulatory approval.
US-based private investment holding company Renco Group has announced that, following the acquisition of three steel companies currently owned by Russian steelmaker Severstal estimated at $1.2 billion, its newly-formed subsidiary RG Steel will become the fourth-largest flat rolled steel producer in the US.
Accordingly, in addition to Severstal's Sparrows Point, Warren and Wheeling facilities, RG Steel will acquire a 50 percent ownership interest in Mountain State Carbon LLC, a cokemaking facility in Follansbee, West Virginia, and Ohio Coatings Company, based in Yorkville, Ohio. RG Steel will receive one half of the coke output from Mountain State Carbon and will continue its long-standing relationship with Ohio Coatings Company. The purchase of these assets will provide RG Steel with approximately 7.5 million mt of annualized steelmaking capacity.
"The formation of RG Steel will create a dynamic, service-oriented company with strategically located facilities," Renco Group's president Ari Rennert stated.
RG Steel will be headquartered at Sparrows Point, Maryland. Completion of the sale is expected in March 2011, pending regulatory approval.
Russia’s Ashinskiy sees 2.8 percent drop in Jan-Feb steel output
Friday, Mar04, 2011
According to its data issued for the first two months of the current year, Russian steel producer Ashinskiy Metallurgical Works (Ashinskiy) registered a 2.8 percent drop year on year in its steel output to 110,000 mt, including 108,600 mt of slabs - down 0.8 percent year on year.
In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.
In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.
In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.
In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.
Monday, February 14, 2011
Atlas Iron now holds 59.92 percent of voting rights in Giralia
Monday, 14February2011
Australian iron ore miner Atlas Iron Limited has announced that it holds 59.92 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 14.
As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
(sourced:steelorb
Tags:iron ore,raw mat, Australia, Oceania, mining, M&A, Atlas, Pellets, Lump ore,Fine ore
Australian iron ore miner Atlas Iron Limited has announced that it holds 59.92 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 14.
As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
(sourced:steelorb
Tags:iron ore,raw mat, Australia, Oceania, mining, M&A, Atlas, Pellets, Lump ore,Fine ore
Wednesday, February 9, 2011
US raw steel production up 0.4 percent week-over-week
Wednesday, 09 February 2011
US raw steel production rose last week (ended February 4) with output increasing 0.4 percent from the previous week. In the previous week, US raw steel production had increased 0.9 percent compared to the week before.
Total raw steel production in the United States amounted to 1,789,000 nt last week. This figure represents a 0.4 percent increase from the 1,782,000 nt produced in the prior week, and is up 10.3 percent from the 1,605,000 nt produced in the same week of last year.
The capacity utilization rate of US raw steelmaking facilities was 74 percent in the week ending February 4, compared to 73.7 percent in the prior week and 67.3 percent in the same week last year.
Tags: USA , North America , steelmaking , production
US raw steel production rose last week (ended February 4) with output increasing 0.4 percent from the previous week. In the previous week, US raw steel production had increased 0.9 percent compared to the week before.
Total raw steel production in the United States amounted to 1,789,000 nt last week. This figure represents a 0.4 percent increase from the 1,782,000 nt produced in the prior week, and is up 10.3 percent from the 1,605,000 nt produced in the same week of last year.
The capacity utilization rate of US raw steelmaking facilities was 74 percent in the week ending February 4, compared to 73.7 percent in the prior week and 67.3 percent in the same week last year.
Tags: USA , North America , steelmaking , production
Monday, February 7, 2011
OMK’s ATZ sees 34 percent rise in steel pipe output in January
Monday, 07 February 2011 11:51:33 (GMT+2)
The Russian pipe producing company United Metallurgical Company (OMK) has announced that in January 2011 the steel pipe output of its Tatarstan-based subsidiary Almetyevsk Pipe Plant (ATZ) increased by 34 percent year on year from 9,635 mt to 12,900 mt. Meanwhile, ATZ's shipments of steel pipes of its own production rose in the first month of this year by 35 percent compared to the same period last year, increasing to 15,008 mt.
Tags: pipe , tubular , Russia , CIS , manufacturing , production , OMK sourced:steelorbis
The Russian pipe producing company United Metallurgical Company (OMK) has announced that in January 2011 the steel pipe output of its Tatarstan-based subsidiary Almetyevsk Pipe Plant (ATZ) increased by 34 percent year on year from 9,635 mt to 12,900 mt. Meanwhile, ATZ's shipments of steel pipes of its own production rose in the first month of this year by 35 percent compared to the same period last year, increasing to 15,008 mt.
Tags: pipe , tubular , Russia , CIS , manufacturing , production , OMK sourced:steelorbis
Wednesday, February 2, 2011
Timken Company invests $35 million to upgrade Ohio rolling mill
Wednesday, 02 February 2011 02:42:50 (GMT+2)
Canton, Ohio-based steel fittings producer The Timken Company announced Tuesday plans to install a high-volume in-line forge press at its Faircrest rolling mill in Canton, Ohio. The Timken Company will invest approximately $35 million for the project.
Slated to begin operations in early 2013, the in-line forge press will increase the plant's capacity and lower cost, as well as expand product capabilities. "This open-die in-line press will be the first step of the forge-rolled process for all Faircrest products," said Tom Moline, VP of manufacturing. "Adding this step prior to rolling will provide better yield and production efficiencies to significantly improve our operations."Tags: USA , North America , steelmaking , production , investments(sourced:steelorbis)
Subscribe to:
Posts (Atom)
Posts
