Sunday, 11 Dec 2011
Mr KC Venugopal minister of state for power informed the Lok Sabha that during the year 2010-11, about 8% of the total coal consumed by the Power Utilities was imported coal.
Out of the total coal imported by the Power Utilities, a significant proportion of coal import was from Indonesia. With 10% blending of imported coal with domestic coal, the increase in cost of electricity generation is of the order of 3 paisa per unit for every US $ 10 / tonne increase in cost of imported coal.
Due to the prevailing shortage of coal from the domestic sources for meeting the demand of generation of electricity, import of coal is being resorted to. Increase in prices of imported coal is beyond the control of Government.
Therefore, the Ministry of Coal is being insisted upon to enhance production of domestic coal in the country to minimize dependence on import of coal. Possibility of overseas mining/long term tie up for import of coal is also being explored by some of the Indian companies/Power Utilities.
Showing posts with label update. Show all posts
Showing posts with label update. Show all posts
Sunday, December 11, 2011
Wednesday, November 30, 2011
Rio Tinto update on production of iron ore
Wednesday, 30 Nov 2011
As industry pricing mechanisms continue to change, Rio Tinto's iron ore sales portfolio has evolved to a balance of spot, monthly and quarterly price mechanisms during the fourth quarter of 2011.
Rio Tinto continues to see an attractive long-term demand picture for iron ore, with Chinese steel production per capita not forecast to peak until circa 2030 at 750kg per capita (500kg per capita today). Other growth economies such as India should still be on an upward demand trajectory at this point.
In the medium term, Rio Tinto forecasts that industry supply will need to increase by 100 million tonnes per year for each of the next eight years to meet demand growth and replace high cost supply. Rio Tinto expects to supply around 25% of this industry growth.
Rio Tinto's Pilbara expansion remains on time and on budget (AUD basis). There are options to increase capacity further from 353 million tonne per annum to 453 million tonne per annum. Capital intensity of expansion from 220 million tonne per annum to 353 million tonne per annum is expected to be around mid USD 150 per tonne on a 100 per cent basis (Rio Tinto share around mid USD 130 per tonne). Expansion beyond 283 million tonne per annum is subject to Board approval.
The development of Simandou is progressing as planned, with the early works already underway. Rio Tinto is adopting a phased approach to constructing the infrastructure to ensure delivery of first commercial production by mid 2015. Rio Tinto recently approved a further USD 211 million in study funding and USD 1.1 billion of early commitments for the next stage of the project.
As industry pricing mechanisms continue to change, Rio Tinto's iron ore sales portfolio has evolved to a balance of spot, monthly and quarterly price mechanisms during the fourth quarter of 2011.
Rio Tinto continues to see an attractive long-term demand picture for iron ore, with Chinese steel production per capita not forecast to peak until circa 2030 at 750kg per capita (500kg per capita today). Other growth economies such as India should still be on an upward demand trajectory at this point.
In the medium term, Rio Tinto forecasts that industry supply will need to increase by 100 million tonnes per year for each of the next eight years to meet demand growth and replace high cost supply. Rio Tinto expects to supply around 25% of this industry growth.
Rio Tinto's Pilbara expansion remains on time and on budget (AUD basis). There are options to increase capacity further from 353 million tonne per annum to 453 million tonne per annum. Capital intensity of expansion from 220 million tonne per annum to 353 million tonne per annum is expected to be around mid USD 150 per tonne on a 100 per cent basis (Rio Tinto share around mid USD 130 per tonne). Expansion beyond 283 million tonne per annum is subject to Board approval.
The development of Simandou is progressing as planned, with the early works already underway. Rio Tinto is adopting a phased approach to constructing the infrastructure to ensure delivery of first commercial production by mid 2015. Rio Tinto recently approved a further USD 211 million in study funding and USD 1.1 billion of early commitments for the next stage of the project.
Monday, October 31, 2011
Rio Tinto update on rail network access in Pilbara
Monday, 31 Oct 2011
Earlier this year the Full Court of the Federal Court of Australia unanimously ruled that the service provided by Rio Tinto's Pilbara rail lines should not be declared as being available for access to third parties.
Rio release said that “Today the High Court of Australia granted Fortescue Metals Group Ltd and the National Competition Council leave to pursue appeals in relation to the decision of the Full Federal Court.”
The release added “No date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012.”
It also said “Rio Tinto maintains that the potential costs of access far exceed any theoretical benefits. This was accepted in the findings of the Australian Competition Tribunal. Rio Tinto will therefore take all appropriate steps to defend these appeals.”
Earlier this year the Full Court of the Federal Court of Australia unanimously ruled that the service provided by Rio Tinto's Pilbara rail lines should not be declared as being available for access to third parties.
Rio release said that “Today the High Court of Australia granted Fortescue Metals Group Ltd and the National Competition Council leave to pursue appeals in relation to the decision of the Full Federal Court.”
The release added “No date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012.”
It also said “Rio Tinto maintains that the potential costs of access far exceed any theoretical benefits. This was accepted in the findings of the Australian Competition Tribunal. Rio Tinto will therefore take all appropriate steps to defend these appeals.”
Monday, February 28, 2011
Nippon says Y20,000 price hike needed after April
(Update1- Nippon Steel sees input costs up by Y15,000/tonne)
* Nippon says Y20,000 price hike needed after April
* Says price increase necessary due to higher input costs
TOKYO Feb 28 (Reuters) - Nippon Steel Corp expects major input costs to rise by more than 15,000 yen ($183.50) per tonne after April, a company official said on Monday.
Due to the rise in input costs, Nippon Steel estimates that a price hike of about 20,000 yen per tonne is necessary for its steel products in general, Kozo Uchida, a senior Nippon Steel executive, told reporters.
That may be equivalent to a nearly 25 percent price hike, given Nippon Steel's average product price of about 82,000 yen planned for the year to March 31.
Its smaller rival JFE Steel last week told primary distributors that it would raise prices steel sheets by 20,000 yen per tonne, signalling to volume contract users such as Toyota Motor Corp the level of price hike it seeks.
Big steelmakers usually push through a price hike among its primary dealers first before starting tough pricing talks with volume users, who buy on contracts, like car and electronics makers and shipbuilders. (Reporting by Yuko Inoue; Editing by Chris Gallagher,sourced:Thomson Reuters)
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