May 30 2011. 1:00 AM IST
By Ruchira Singh
Indian firms will jointly bid for Afghanistan’s Hajigak iron ore mines and a 24% stake in MEC Coal in Singapore.
State-owned steel maker Steel Authority of India Ltd (SAIL) hopes to buy iron ore mines in Afghanistan and is also eyeing a 24% stake in Singapore’s MEC Coal via separate consortia, as the race for overseas mining assets hots up.
“Only five-six big companies, headed by SAIL, will bid for Afghanistan’s iron ore asset,” SAIL chairman C.S. Verma said in an interview. “In next two weeks’ time, we should sign an agreement.”
Afghanistan has invited global bids for its Hajigak iron ore mineral fields and short-listed 21 companies.
Verma, who convened a meeting of 15 Indian companies last week, said that if the Indian consortium wins the Hajigak mines, it would be interested in setting up a steel plant as the country is seen as a good market.
Afghanistan currently imports 4-5 million tonnes (mt) of steel a year.
Mint reported on 20 May that representatives of the 15 companies including Tata Steel Ltd, Rashtriya Ispat Nigam Ltd, Jindal Steel and Power Ltd (JSPL) and Jindal Steel Works met SAIL executives to discuss a joint bid for the fields, which may hold as much as 1.8 billion tonnes of high-grade iron ore.
“Afghanistan’s economy is transforming into a developing one,” Verma said. “Our bid is on a pure commercial bidding basis only, but yes, we have to get support of the government, which I think will come.”
Verma also said the International Coal Ventures Pvt. Ltd (ICVL) consortium, headed by SAIL, was in talks with Singapore-based MEC Coal for the purchase of a 24% stake that could give the consortium some thermal coal from overseas.
“ICVL and MEC are still discussing the documentation part of it,” he said. “Stake buying is frozen now, but there are various other documents which are required to be frozen, which we are discussing with them. There is no timeline (for closure of the deal).”
Indian metal companies have been buying mines and plants overseas in an effort to secure supplies otherwise unavailable in India and also to side-step as they are finding it difficult to grow in India owing to social, environmental and regulatory roadblocks.
The trend that has accelerated recently started several years ago with Tata Steel buying out Anglo Dutch Corus in 2006 and JSW Steel Ltd acquiring a factory in the US in 2007 and later mines in Chile, the US and Mozambique.
Even mid-size Essar Steel Ltd and JSPL have a global presence.
SAIL has been comparatively slow.
It has been chasing assets through ICVL, which is also headed by Verma, but has met with no major success in the last two years.
Analysts say slow decision-making coupled with the difficulties of working in foreign terrain are responsible for this.
Verma said such acquisitions are “not very easy”.
“Two or three other proposals (apart from MEC) are at various levels of due diligence,” he said. “We are buying assets which we have to develop and we have to cater to mining operations. Assume a success rate on a conservative basis of 25%.”
Verma added that these investments would cost between $500 million (`2,265 crore) and $1 billion.
Analysts say SAIL needs to grow aggressively, pointing to growing demand—it is rising at double digit rates—lagging supply, and rising imports.
Most of the company’s planned modernization and expansion of steel capacity to 23.5 mt by 2013 from 13.8 mt now is at existing steel plants. It should, the analysts add, be building new plants with newer technology instead.
“The perception about SAIL (being slow) is partially correct; there have been delays on their projects,” said Arun Kejriwal, director of equity research firm KRIS.
SAIL has been in talks with South Korea’s Pohang Iron and Steel Co. (Posco) for setting up a plant using Finex technology to produce high grade steel since last year amid reports of differences over shareholding.
“There are so many issues involved. There are technological issues involved. There are many other logistics and organizational issues involved. A detailed project report (DPR) is under preparation. The gestation is three years from the time DPR is accepted,” said Verma.
“As for the acceptance of DPR I am not giving any time line.” (sourced Livemint)
Monday, May 30, 2011
Brierty win Karara iron ore contract
Monday, 30 May2011
By Cole Latimer
Brierty has been awarded the hematite mining and services contract for the Karara iron ore project.
Valued at $185 million, it is set to run over four years.
The contractor is providing drilling and blasting, loading and haulage, as well as crushing and screening.
Brierty chief executive officer Peter McBain stated that this “contract is a cornerstone mining project and provides Brierty with ability to leverage additional opportunities from the development of the Midwest region of Western Australia.”
Karara CEO Stephen Murdoch said it selected Brierty based on the strength of its team.
(sourced miningaustralia)
By Cole Latimer
Brierty has been awarded the hematite mining and services contract for the Karara iron ore project.
Valued at $185 million, it is set to run over four years.
The contractor is providing drilling and blasting, loading and haulage, as well as crushing and screening.
Brierty chief executive officer Peter McBain stated that this “contract is a cornerstone mining project and provides Brierty with ability to leverage additional opportunities from the development of the Midwest region of Western Australia.”
Karara CEO Stephen Murdoch said it selected Brierty based on the strength of its team.
(sourced miningaustralia)
Queensland coal strikes ‘may be only option’, Union says
Monday,30 May2011
By Cole Latimer
Union negotiations at the BHP Billiton Mitsuibishi Alliance’s (BMA) Queensland coal mines have come to a standstill.
They claim that the miner may instigate an “un-family friendly” work roster system at its Queensland mines, similar to those in place in Western Australia, according to the Central Queensland News.
The union says it is trying to keep the existing work rosters and better job security, claiming that BHP is attempting to introduce a more fly in fly out (FIFO) and drive in drive out (DIDO) on site.
On Wednesday, unions announced that they were considering industrial action.
Construction, Forestry Mining and Engineering Union (CFMEU) Queensland district vice president Steve Pierce stated that BHP was refusing to listen to the “reasonable terms and conditions” for which the unions asked.
“Being such a large company I expect them to be more mature about how they conduct themselves at negotiations,” he said.
However, BHP stated the unions are trying to reintroduce outdated industrial practices that were “beyond reasonable expectations.”
According to the CQ News, close to 4000 miners will strike if BHP refuses to negotiate the issues with the CFMEU, AMWU and CEPU.
Pierce stated that BHP has also looked to bringing in supplementary workers, and though he understood the miner’s right to bring in whatever workforce it chose, “it should not be at the expense of permanent employees.” (sourced miningaustralia)
By Cole Latimer
Union negotiations at the BHP Billiton Mitsuibishi Alliance’s (BMA) Queensland coal mines have come to a standstill.
They claim that the miner may instigate an “un-family friendly” work roster system at its Queensland mines, similar to those in place in Western Australia, according to the Central Queensland News.
The union says it is trying to keep the existing work rosters and better job security, claiming that BHP is attempting to introduce a more fly in fly out (FIFO) and drive in drive out (DIDO) on site.
On Wednesday, unions announced that they were considering industrial action.
Construction, Forestry Mining and Engineering Union (CFMEU) Queensland district vice president Steve Pierce stated that BHP was refusing to listen to the “reasonable terms and conditions” for which the unions asked.
“Being such a large company I expect them to be more mature about how they conduct themselves at negotiations,” he said.
However, BHP stated the unions are trying to reintroduce outdated industrial practices that were “beyond reasonable expectations.”
According to the CQ News, close to 4000 miners will strike if BHP refuses to negotiate the issues with the CFMEU, AMWU and CEPU.
Pierce stated that BHP has also looked to bringing in supplementary workers, and though he understood the miner’s right to bring in whatever workforce it chose, “it should not be at the expense of permanent employees.” (sourced miningaustralia)
Merkel Coalition to Shut Nuclear Plants
May 30, 2011 3:23 PM GMT+0530
By Rainer Buergin and Brian Parkin
Germany moved closer to a plan to become the biggest nation to exit nuclear power, with Chancellor Angela Merkel’s coalition endorsing a shutdown of atomic plants by 2022, capping her reversal on energy policy.
EON AG and RWE AG (RWE), the two biggest utilities, led declines on the benchmark DAX stock index, with both dropping more than 2 percent and RWE slumping to its lowest since December 2004 as the government retained a tax on spent fuel rods. Solar-power companies Q-Cells SE (QCE) and Solarworld AG (SWV) rallied.
The decision in the early morning hours today by coalition leaders in Berlin underscored Merkel’s flip-flop from a 2009 re- election promise to extend the life of nuclear reactors. She did her about-face after the March meltdown in Japan as the anti- nuclear Green Party gained in polls. Her party lost control of Baden-Wuerttemberg to the Greens in March and finished behind them in a state election for the first time on May 22.
“As far as the government’s credibility is concerned, it was about damage limitation,” said Bernhard Jeggle, a utility analyst with Landesbank Baden Wuerttemberg in Stuttgart. “Those people who wanted to exit nuclear probably voted Green in the first place and will continue to choose the original rather than Merkel’s copy.”
Germany’s BWE renewable energy federation said this year its members were prepared to spend as much as 200 billion euros ($286 billion) by 2020 to develop wind and solar power. Merkel wants to present five or six bills in Cabinet on June 6, including a revamp of feed-in-tariffs for solar, wind and bio- mass power, new building insulation targets and plans to build new “smart” power grids.
Cost Concerns
Businesses and utilities opposed Merkel’s move, warning of increased costs and less reliable power sources.
Nuclear supplied some 22 percent of German power in 2010, while renewable sources provided 17 percent, the Economy Ministry said. Europe is split on the future of nuclear power, with France and the U.K. planning more reactors while Germany joined Switzerland in setting an exit date and Italy extended a moratorium on plans to re-enter atomic energy.
Germany is Europe’s largest power market, followed by France. Germany last year was a net exporter of power to France, sending 16.1 terawatt hours to the country compared with imports of 9.4 terawatt hours, according to data published by grid operate Reseau de Transport d’Electricite.
Polish Coal
“It’s hard to see how they will replace the energy,” Anne Lauvergeon, chief executive officer of French state-owned Areva SA, the world’s biggest maker of nuclear equipment, said on BFM Radio. “I’m not sure there is enough Polish coal, and it creates carbon problems. Alternative energy sources are intermittent sources. I think they will do what Austria did in its time: import nuclear electricity from neighboring countries.”
EON slumped as much as 1.7 percent to 19.68 euros as of 11:50 a.m. local time in Frankfurt trading, extending the stock’s decline to 15 percent this year. Smaller rival RWE tumbled 2.4 percent to 40.04 euros.
Q-Cells jumped 9 percent to 1.93 euros and Solarworld added 6.3 percent to 9.40 euros.
Merkel in March said she sought to accelerate the shutdown of Germany’s atomic power plants following Japan’s Fukushima disaster, the worst nuclear crisis since 1986. The decision reversed a 2010 plan to extend the operation of the facilities by an average of 12 years.
Shutdown Schedule
“The seven oldest reactors that have been placed under a moratorium and the Kruemmel nuclear power plant won’t go back online,” Environment Minister Norbert Roettgen told reporters following the coalition talks. “A second group of six nuclear power plants will go offline at the end of 2021 at the latest and the three most modern power plants will go offline 2022 at the latest.”
Coalition divisions over the timing of a phase-out deepened after the Greens finished ahead of Merkel’s Christian Democrats in the state of Bremen May 22. Merkel said last week she’d await results of an independent feasibility study on a quicker phase- out, to be published today, before setting a date.
Merkel’s Free Democrat coalition partners, backed by the BDI industry group, urged her to show flexibility in the run-up to 2022. FDP Chairman Philipp Roesler told reporters that his party advocated a phased shutdown to avert the risk of a power gap. The Christian Social Union, the Bavarian sister party to Merkel’s Christian Democrats, sought a 2021 shutdown date.
Network Stability
Roettgen said everybody attending the meeting agreed that “network stability and security of supply has to be guaranteed at every hour and at every level of power consumption,” adding Germany’s network agency will take the necessary measures to guarantee this.
A tax on spent fuel rods introduced this year to cover some of the costs of their disposal as well as help the budget will stay on the statute books, Roettgen said.
EON and RWE are among the worst performers this year on Germany’s 30-member benchmark DAX index (DAX), having dropped 12.5 percent and 17.9 percent respectively.
With the possibility that a federal election in 2013 may result in a new government, Merkel is seeking broad backing for revamping nuclear policy.
Roettgen said there won’t be a revision clause, meaning there’s “clarity about the end” of nuclear power in Germany that can’t be turned back.
The CDU’s “Wirtschaftsrat” or council of affiliated companies, said Merkel’s “go-it-alone” nuclear policy in Europe may add billions of euros to power bills paid by industry and consumers.
“I’ve heard lots about a phase-out of nuclear power but little about the costs of phasing in renewable energy,” its President Kurt Lauk told reporters in Berlin on May 25.
(sourced Bloomberg)
By Rainer Buergin and Brian Parkin
Germany moved closer to a plan to become the biggest nation to exit nuclear power, with Chancellor Angela Merkel’s coalition endorsing a shutdown of atomic plants by 2022, capping her reversal on energy policy.
EON AG and RWE AG (RWE), the two biggest utilities, led declines on the benchmark DAX stock index, with both dropping more than 2 percent and RWE slumping to its lowest since December 2004 as the government retained a tax on spent fuel rods. Solar-power companies Q-Cells SE (QCE) and Solarworld AG (SWV) rallied.
The decision in the early morning hours today by coalition leaders in Berlin underscored Merkel’s flip-flop from a 2009 re- election promise to extend the life of nuclear reactors. She did her about-face after the March meltdown in Japan as the anti- nuclear Green Party gained in polls. Her party lost control of Baden-Wuerttemberg to the Greens in March and finished behind them in a state election for the first time on May 22.
“As far as the government’s credibility is concerned, it was about damage limitation,” said Bernhard Jeggle, a utility analyst with Landesbank Baden Wuerttemberg in Stuttgart. “Those people who wanted to exit nuclear probably voted Green in the first place and will continue to choose the original rather than Merkel’s copy.”
Germany’s BWE renewable energy federation said this year its members were prepared to spend as much as 200 billion euros ($286 billion) by 2020 to develop wind and solar power. Merkel wants to present five or six bills in Cabinet on June 6, including a revamp of feed-in-tariffs for solar, wind and bio- mass power, new building insulation targets and plans to build new “smart” power grids.
Cost Concerns
Businesses and utilities opposed Merkel’s move, warning of increased costs and less reliable power sources.
Nuclear supplied some 22 percent of German power in 2010, while renewable sources provided 17 percent, the Economy Ministry said. Europe is split on the future of nuclear power, with France and the U.K. planning more reactors while Germany joined Switzerland in setting an exit date and Italy extended a moratorium on plans to re-enter atomic energy.
Germany is Europe’s largest power market, followed by France. Germany last year was a net exporter of power to France, sending 16.1 terawatt hours to the country compared with imports of 9.4 terawatt hours, according to data published by grid operate Reseau de Transport d’Electricite.
Polish Coal
“It’s hard to see how they will replace the energy,” Anne Lauvergeon, chief executive officer of French state-owned Areva SA, the world’s biggest maker of nuclear equipment, said on BFM Radio. “I’m not sure there is enough Polish coal, and it creates carbon problems. Alternative energy sources are intermittent sources. I think they will do what Austria did in its time: import nuclear electricity from neighboring countries.”
EON slumped as much as 1.7 percent to 19.68 euros as of 11:50 a.m. local time in Frankfurt trading, extending the stock’s decline to 15 percent this year. Smaller rival RWE tumbled 2.4 percent to 40.04 euros.
Q-Cells jumped 9 percent to 1.93 euros and Solarworld added 6.3 percent to 9.40 euros.
Merkel in March said she sought to accelerate the shutdown of Germany’s atomic power plants following Japan’s Fukushima disaster, the worst nuclear crisis since 1986. The decision reversed a 2010 plan to extend the operation of the facilities by an average of 12 years.
Shutdown Schedule
“The seven oldest reactors that have been placed under a moratorium and the Kruemmel nuclear power plant won’t go back online,” Environment Minister Norbert Roettgen told reporters following the coalition talks. “A second group of six nuclear power plants will go offline at the end of 2021 at the latest and the three most modern power plants will go offline 2022 at the latest.”
Coalition divisions over the timing of a phase-out deepened after the Greens finished ahead of Merkel’s Christian Democrats in the state of Bremen May 22. Merkel said last week she’d await results of an independent feasibility study on a quicker phase- out, to be published today, before setting a date.
Merkel’s Free Democrat coalition partners, backed by the BDI industry group, urged her to show flexibility in the run-up to 2022. FDP Chairman Philipp Roesler told reporters that his party advocated a phased shutdown to avert the risk of a power gap. The Christian Social Union, the Bavarian sister party to Merkel’s Christian Democrats, sought a 2021 shutdown date.
Network Stability
Roettgen said everybody attending the meeting agreed that “network stability and security of supply has to be guaranteed at every hour and at every level of power consumption,” adding Germany’s network agency will take the necessary measures to guarantee this.
A tax on spent fuel rods introduced this year to cover some of the costs of their disposal as well as help the budget will stay on the statute books, Roettgen said.
EON and RWE are among the worst performers this year on Germany’s 30-member benchmark DAX index (DAX), having dropped 12.5 percent and 17.9 percent respectively.
With the possibility that a federal election in 2013 may result in a new government, Merkel is seeking broad backing for revamping nuclear policy.
Roettgen said there won’t be a revision clause, meaning there’s “clarity about the end” of nuclear power in Germany that can’t be turned back.
The CDU’s “Wirtschaftsrat” or council of affiliated companies, said Merkel’s “go-it-alone” nuclear policy in Europe may add billions of euros to power bills paid by industry and consumers.
“I’ve heard lots about a phase-out of nuclear power but little about the costs of phasing in renewable energy,” its President Kurt Lauk told reporters in Berlin on May 25.
(sourced Bloomberg)
Adani offers CIL partnership in Aussie coal mine
May 29, 2011, 12:42 IST
Press Trust of India
New Delhi: Business conglomerate Adani Group has made an offer to Maharatna mining company Coal India to form a joint venture to exploit one of the coal mines it has bought in Australia, an official said.
"Adani Group has given an offer to Coal India to form a joint venture company to exploit one of the coal mines, which it had bought in Australia," a senior Coal Ministry official told PTI.
The public sector firm, however, has not yet taken any decision on the offer made by Adani Group.
"Coal India Ltd's [CIL] board has not dwelt upon the offer," the official said.
However, when contacted, Adani Group spokesperson denied to comment on the issue, saying, "We will not comment on rumours and speculations."
CIL Chairman NC Jha could not be reached out for his comments.
Coal India has set aside Rs 6,000 crore out of its cash reserves this fiscal to fund any likely acquisition of foreign mines, Jha had earlier said.
Adani Group, the country's largest coal importer, has been aggressive on its overseas acquisition programmes. It bought coal assets in Australia for Rs 12,600 crore in August last year.
Its unit, Adani Enterprises, bought Brisbane-based Linc Energy's Galilee coal tenement in the Queensland for about Rs 12,600 crore in a cash and royalty deal.
Meanwhile, taking forward its global ambitions, CIL has shortlisted US firms Peabody Energy and Massey Energy besides Indonesian Novem/Sinarma, for a possible partnership for their respective mines in Australia, Indonesia and the USA.
Coal India, which has domestic market share of over 80%, has maintained that it is sitting on a cash balance of over Rs 40,000 crore. PTI SID NAM MM ARV
Press Trust of India
New Delhi: Business conglomerate Adani Group has made an offer to Maharatna mining company Coal India to form a joint venture to exploit one of the coal mines it has bought in Australia, an official said.
"Adani Group has given an offer to Coal India to form a joint venture company to exploit one of the coal mines, which it had bought in Australia," a senior Coal Ministry official told PTI.
The public sector firm, however, has not yet taken any decision on the offer made by Adani Group.
"Coal India Ltd's [CIL] board has not dwelt upon the offer," the official said.
However, when contacted, Adani Group spokesperson denied to comment on the issue, saying, "We will not comment on rumours and speculations."
CIL Chairman NC Jha could not be reached out for his comments.
Coal India has set aside Rs 6,000 crore out of its cash reserves this fiscal to fund any likely acquisition of foreign mines, Jha had earlier said.
Adani Group, the country's largest coal importer, has been aggressive on its overseas acquisition programmes. It bought coal assets in Australia for Rs 12,600 crore in August last year.
Its unit, Adani Enterprises, bought Brisbane-based Linc Energy's Galilee coal tenement in the Queensland for about Rs 12,600 crore in a cash and royalty deal.
Meanwhile, taking forward its global ambitions, CIL has shortlisted US firms Peabody Energy and Massey Energy besides Indonesian Novem/Sinarma, for a possible partnership for their respective mines in Australia, Indonesia and the USA.
Coal India, which has domestic market share of over 80%, has maintained that it is sitting on a cash balance of over Rs 40,000 crore. PTI SID NAM MM ARV
China May Double Thermal Coal Imports by 2015, Noble Says
May 30, 2011 1:34 PM GMT+0530
By Dinakar Sethuraman and Yoga Rusmana
China may more than double thermal coal imports to 200 million metric tons by 2015 from 90 million last year, said Neil Dhar, executive vice president at Noble Group. Imports this year may be unchanged from 2010, he said.
India’s overseas purchases of the power-station fuel may increase to 67 million tons this year and 100 million by 2015, from 58 million in 2010, Dhar said at the Coaltrans Asia conference in Bali today. China’s domestic consumption will be 3.5 billion tons and India may use 1 billion tons by 2015.
Australia and Indonesia will mainly supply China and India and additional volumes may come from the U.S. west coast and South Africa, Singapore-based Dhar said. The industry is witnessing cost pressures, which will keep prices high, he said, declining to give details.
(sourced Bloomberg)
By Dinakar Sethuraman and Yoga Rusmana
China may more than double thermal coal imports to 200 million metric tons by 2015 from 90 million last year, said Neil Dhar, executive vice president at Noble Group. Imports this year may be unchanged from 2010, he said.
India’s overseas purchases of the power-station fuel may increase to 67 million tons this year and 100 million by 2015, from 58 million in 2010, Dhar said at the Coaltrans Asia conference in Bali today. China’s domestic consumption will be 3.5 billion tons and India may use 1 billion tons by 2015.
Australia and Indonesia will mainly supply China and India and additional volumes may come from the U.S. west coast and South Africa, Singapore-based Dhar said. The industry is witnessing cost pressures, which will keep prices high, he said, declining to give details.
(sourced Bloomberg)
India's Lanco Infra mulls bid for Australia's Premier Coal
Mon May 30, 2011 4:56am EDT
By Rajesh Kurup and Ketan Bondre
MUMBAI May 30 (Reuters) - Lanco Infratech Ltd is considering a bid for Australia's Premier Coal, owned by coal-to-retail conglomerate Wesfarmers , a top executive said, joining the race of Indian firms scouting for coal assets across the world.
"We are evaluating it," Lanco Group Chief Financial Officer J. Suresh Kumar told Reuters on Monday. "We have not yet started due diligence."
Wesfarmers is looking to sell the Premier Coal mine in the western part of Australia, whose value is estimated by analysts at $400 million-plus, The Australian newspaper has reported.
"They (Wesfarmers) are following a transparent process. We are participating in that process, and maybe in the next two-three months there would be clarity on it," Kumar said.
Indian energy major Reliance Industries , utility Reliance Power and construction and energy firm GVK Power are also in the race to buy Premier Coal, media reports have said.
In December, Lanco had acquired Australia's Griffin Coal mines for A$750 million ($760 million).
RACE FOR COAL
Indian companies are looking to secure overseas coal supplies to fuel power plants in India, which aims to halve its nearly 14 percent peak-hour power deficit within two years.
Aditya Birla Group, JSW Steel and Jindal Steel & Power are shortlisted bidders for another Australian coal explorer Bandanna Energy in a potential billion-dollar-plus sale.
Last August, conglomerate Adani Enterprises had bought Australian Linc Energy's Galilee coal project in a cash and royalty deal worth $2.7 billion.
India's demand for coal is forecast to grow 11 percent a year, while imports for 2011/12 are likely to touch 135 million tonnes, according to the coal minister.
At 0851 GMT, shares in Lanco, valued by the market at $1.8 billion, were trading down almost 3 percent at 32.90 rupees in a steady Mumbai market. (Editing by Ranjit Gangadharan, Reuters)
By Rajesh Kurup and Ketan Bondre
MUMBAI May 30 (Reuters) - Lanco Infratech Ltd is considering a bid for Australia's Premier Coal, owned by coal-to-retail conglomerate Wesfarmers , a top executive said, joining the race of Indian firms scouting for coal assets across the world.
"We are evaluating it," Lanco Group Chief Financial Officer J. Suresh Kumar told Reuters on Monday. "We have not yet started due diligence."
Wesfarmers is looking to sell the Premier Coal mine in the western part of Australia, whose value is estimated by analysts at $400 million-plus, The Australian newspaper has reported.
"They (Wesfarmers) are following a transparent process. We are participating in that process, and maybe in the next two-three months there would be clarity on it," Kumar said.
Indian energy major Reliance Industries , utility Reliance Power and construction and energy firm GVK Power are also in the race to buy Premier Coal, media reports have said.
In December, Lanco had acquired Australia's Griffin Coal mines for A$750 million ($760 million).
RACE FOR COAL
Indian companies are looking to secure overseas coal supplies to fuel power plants in India, which aims to halve its nearly 14 percent peak-hour power deficit within two years.
Aditya Birla Group, JSW Steel and Jindal Steel & Power are shortlisted bidders for another Australian coal explorer Bandanna Energy in a potential billion-dollar-plus sale.
Last August, conglomerate Adani Enterprises had bought Australian Linc Energy's Galilee coal project in a cash and royalty deal worth $2.7 billion.
India's demand for coal is forecast to grow 11 percent a year, while imports for 2011/12 are likely to touch 135 million tonnes, according to the coal minister.
At 0851 GMT, shares in Lanco, valued by the market at $1.8 billion, were trading down almost 3 percent at 32.90 rupees in a steady Mumbai market. (Editing by Ranjit Gangadharan, Reuters)
London Mining plans Marampa first iron ore shipment in Q4
Monday, 30 May 2011
London Mining told investors that it remains on target for the third quarter commissioning of the Marampa iron ore mine in Sierra Leone, and the first shipment is expected to leave the mine in the fourth quarter of 2011.
In this morning’s operational update the group said it has made significant progress at Marampa in the year to date. Notable achievements include the completion of environmental permitting in January, securing an off-take deal with Glencore and a JORC resource update to 1 billion tonnes.
It said that phase one construct is more than 60% complete and it has now completed the pre-feasibility study for the 16 million tonne (per annum) phase two expansion.
The group acknowledged that it fell behind schedule because of delays at the Freetown Port which also coincided with public holidays but it said it has cleared the bottleneck and it will use double shifts to make up the lost time.
Meanwhile at the Isua project in Greenland a bankable feasibility study is underway and it is expected to be completed by December 2011.
The company recently completed a JORC resource upgrade which took total resources to 1 billion tonnes and it also updated the scoping study to consider a 15 million tonne per annum operation.
Elsewhere in Colombia London Mining expects first coking coal production in the fourth quarter of 2011. It is currently working on the construction of the first 60 ovens - which will provide 200,000 tonnes of coking capacity.
Worse than expected weather due to La Nina - the counterpart or opposite of the El Nino - effect has led to increased drainage costs and other costs. Also FOREX movements have also had an impact on costs. London Mining said that it currently expects the project CAPEX to be US$34 million. (sourced proactiveinvestors)
London Mining told investors that it remains on target for the third quarter commissioning of the Marampa iron ore mine in Sierra Leone, and the first shipment is expected to leave the mine in the fourth quarter of 2011.
In this morning’s operational update the group said it has made significant progress at Marampa in the year to date. Notable achievements include the completion of environmental permitting in January, securing an off-take deal with Glencore and a JORC resource update to 1 billion tonnes.
It said that phase one construct is more than 60% complete and it has now completed the pre-feasibility study for the 16 million tonne (per annum) phase two expansion.
The group acknowledged that it fell behind schedule because of delays at the Freetown Port which also coincided with public holidays but it said it has cleared the bottleneck and it will use double shifts to make up the lost time.
Meanwhile at the Isua project in Greenland a bankable feasibility study is underway and it is expected to be completed by December 2011.
The company recently completed a JORC resource upgrade which took total resources to 1 billion tonnes and it also updated the scoping study to consider a 15 million tonne per annum operation.
Elsewhere in Colombia London Mining expects first coking coal production in the fourth quarter of 2011. It is currently working on the construction of the first 60 ovens - which will provide 200,000 tonnes of coking capacity.
Worse than expected weather due to La Nina - the counterpart or opposite of the El Nino - effect has led to increased drainage costs and other costs. Also FOREX movements have also had an impact on costs. London Mining said that it currently expects the project CAPEX to be US$34 million. (sourced proactiveinvestors)
Qinhuangdao port coal throughput up 6 pct
Monday, 30 May 2011
Coal handling at Qinhuangdao port, China’s top coal loading port, increased again last in the week from May 16 to 22, up by 5.96% from a week earlier.
Qinhuangdao Seaborne Coal Market said that coal shipment from the port reached 5.39 million tonnes last week, averaging 769,300 tonnes per day. The number has been increasing for two consecutive weeks, data showed. Coal deliveries to the port via railway gained 3.9% from the previous week to 5.35 million tonnes, namely 764,600 tonnes per day.
Qinhuangdao port had 5.89 million tonnes coal in stock on average per day in the week. As of May 22, coal stockpiles at the port were 5.79 million tonnes. (sourced sxcoal)
Coal handling at Qinhuangdao port, China’s top coal loading port, increased again last in the week from May 16 to 22, up by 5.96% from a week earlier.
Qinhuangdao Seaborne Coal Market said that coal shipment from the port reached 5.39 million tonnes last week, averaging 769,300 tonnes per day. The number has been increasing for two consecutive weeks, data showed. Coal deliveries to the port via railway gained 3.9% from the previous week to 5.35 million tonnes, namely 764,600 tonnes per day.
Qinhuangdao port had 5.89 million tonnes coal in stock on average per day in the week. As of May 22, coal stockpiles at the port were 5.79 million tonnes. (sourced sxcoal)
China railways to guarantee coal supply during power crunch
Monday, 30 May 2011
China's railway authority has drawn up plans to guarantee the supply of coal to power plants over coming months as the country's worst electricity shortages in years kicks in.
According to a statement on its website, the ministry said it would ensure that rail transportation problems do not cause power restrictions and would see to it that coal was delivered to regions where inventories were currently low.
Railways delivered an average of 87,423 shipments of coal per day from May 1 to 23, and the 363 power plants directly supplied by the ministry had 31.66 million tonnes of stockpiles, which could last 13.9 days.
China's overloaded rail and road networks struggle to deliver vast quantities of coal from major producing regions in the north to big electricity-consuming provinces such as Jiangsu, Zhejiang and Guangdong in the east and southeast, where local supplies are scarce. (sourced Reuters)
China's railway authority has drawn up plans to guarantee the supply of coal to power plants over coming months as the country's worst electricity shortages in years kicks in.
According to a statement on its website, the ministry said it would ensure that rail transportation problems do not cause power restrictions and would see to it that coal was delivered to regions where inventories were currently low.
Railways delivered an average of 87,423 shipments of coal per day from May 1 to 23, and the 363 power plants directly supplied by the ministry had 31.66 million tonnes of stockpiles, which could last 13.9 days.
China's overloaded rail and road networks struggle to deliver vast quantities of coal from major producing regions in the north to big electricity-consuming provinces such as Jiangsu, Zhejiang and Guangdong in the east and southeast, where local supplies are scarce. (sourced Reuters)
Gunvor eying coking coal major Raspadskaya - Report
Monday, 30 May 2011
Reuters reported that Energy trader Gunvor is interested in acquiring Russian coal activities including coking coal miner Raspadskaya and steam coal player SDS.
The report quoted one of the sources as saying that “Gunvor is concluding the purchase of a large stake in SDS, and it could raise this further. But the ultimate goal is not SDS, but Raspadskaya.”
Gunvor, co owned by Mr Gennady Timchenko, declined to comment on the information. Its media relation representatives said the company does not comment on market rumor and speculation. (sourced from Reuters)
Reuters reported that Energy trader Gunvor is interested in acquiring Russian coal activities including coking coal miner Raspadskaya and steam coal player SDS.
The report quoted one of the sources as saying that “Gunvor is concluding the purchase of a large stake in SDS, and it could raise this further. But the ultimate goal is not SDS, but Raspadskaya.”
Gunvor, co owned by Mr Gennady Timchenko, declined to comment on the information. Its media relation representatives said the company does not comment on market rumor and speculation. (sourced from Reuters)
Coal cargo ship remains moored in Bakud Reef
Monday, 30 May 2011
Philippine Daily Inquirer reported that the cargo ship that rammed into the protected Bakud Reef off Kiamba town on May 15 remained moored as of Friday.
The Malaysian towage firm, contracted to remove the vessel, had decided to unload some 8,000 tonnes of the coal cargo to easily re float it. But the attempt proved to be slow as only about 1,600 tons had so far been transferred to a barge.
MV Double Prosperity was carrying 66,000 tonnes of coal from Australia to India when it rammed into the reef. (sourced Inquirer)
Philippine Daily Inquirer reported that the cargo ship that rammed into the protected Bakud Reef off Kiamba town on May 15 remained moored as of Friday.
The Malaysian towage firm, contracted to remove the vessel, had decided to unload some 8,000 tonnes of the coal cargo to easily re float it. But the attempt proved to be slow as only about 1,600 tons had so far been transferred to a barge.
MV Double Prosperity was carrying 66,000 tonnes of coal from Australia to India when it rammed into the reef. (sourced Inquirer)
Spot coking coal prices in US unchanged - Energy Publishing
Monday, 30 May 2011
According to Energy Publishing Inc, metallurgical coal prices were unchanged last week on the U.S. market amid resistance from foreign buyers.
Spot prices for low volatility coking coal were unchanged at USD 315 a ton in the week ended while high volatility coal was steady at USD 268.33.
Energy Publishing said that “European buyers are hesitant to accept USD 315 as a global benchmark but are still working to determine exactly where the market is.”
(sourced bloomberg)
According to Energy Publishing Inc, metallurgical coal prices were unchanged last week on the U.S. market amid resistance from foreign buyers.
Spot prices for low volatility coking coal were unchanged at USD 315 a ton in the week ended while high volatility coal was steady at USD 268.33.
Energy Publishing said that “European buyers are hesitant to accept USD 315 as a global benchmark but are still working to determine exactly where the market is.”
(sourced bloomberg)
China tightens grip on Inner Mongolia before protest
May 29, 2011 3:41pm GMT
* Protest planned in the capital of Hohhot on Monday
* Major square in Hohhot under heavy security
* Top party chief meets students
By Ben Blanchard
HOHHOT, May 29 (Reuters) - Security forces sealed off parts of the capital of China's vast northern region of Inner Mongolia on Sunday to prevent residents from staging a planned protest after the hit-and-run death of a herder.
Ethnic Mongolians have been protesting for six days over the death this month of a Mongolian herder, Mergen, after being struck by a coal truck. The government announced the arrest of two Han Chinese for homicide, but that failed to stem the anger.
Hundreds of paramilitary policemen and police in riot gear, armed with shields, batons and helmets, patrolled Hohhot's Xinhua Square, next to the Inner Mongolia radio and television station, after calls spread online for a protest on Monday.
Police also surrounded Ruyi Square, in front of the local government building, but elsewhere life went on as usual.
Chinese authorities sealed off parts of the northern region of Inner Mongolia, a resource-rich region strategically located on the borders of Russia and Mongolia, on Friday in what residents described as martial law.
In a rare sign of defiance, hundreds of China's Mongolians, who make up less than 20 percent of the roughly 24 million population of the Inner Mongolian Autonomous Region, have taken to the streets in other parts of the province.
Resentment against Han Chinese runs deep.
Inner Mongolia, which covers more than a 10th of China's land mass, is supposed to offer a high degree of self-rule, but Mongolians say the Han Chinese majority run the show and have been the main beneficiaries of economic development.
China's Mongolians rarely take to the streets, unlike Tibetans or Xinjiang's Uighurs, making the latest protests highly unusual.
The New York-based Southern Mongolian Human Rights Information Centre said Mongolians were planning further protests over the next few days, including in Hohhot, less than an hour's flight from Beijing.
HEIGHTENED SECURITY
Some schools in Hohhot said authorities had stepped up security.
"The school has told us to keep an eye for any illegal gathering these days as June 4 is coming," one man in a high school in Hohhot told Reuters, referring to the armed crackdown on pro-democracy protesters on June 4, 1989, in Beijing.
"Security is tight, there are many policemen in the streets," he added. He declined to give his name.
A worker at a university in Hohhot said three entrances had been sealed off and there was a heavy police presence. He declined to comment on the reason. Telephone calls to the Hohhot government and its propaganda department went unanswered.
Police in Hohhot later detained a Reuters reporter and questioned him on why he had come to the city.
A government official then told another Reuters reporter that foreign journalists needed to apply three days in advance if they wished to report in the city. "Everything is stable in Hohhot, it is very safe here," said the official.
In the ruling party's first response to the protests, Inner Mongolia's Communist Party chief Hu Chunhua told students and teachers on Friday he was representing the government to seek their views on the situation. He said "public anger has been immense", state media reported.
"Please be assured, teachers and students, that the suspects ... will be punished severely and quickly, so that the ... rights of victims and their families can be resolutely safeguarded," the Inner Mongolian Daily cited Hu as saying.
But Hu's reassurances are unlikely to bring lasting calm, said Enghebatu Togochog of the Southern Mongolian Human Rights Information Centre.
"The conflict between the Chinese authorities' attempts to exploit the natural resources and the disrespect of the Mongolians' way of life will not be easily resolved, unless the Chinese government changes its policy," he said. (Additional reporting by Sui-Lee Wee and Huang Yan, Writing by Sui-Lee Wee,;Editing by Nick Macfie and Elizabeth Piper, sourced Thomson Reuters)
* Protest planned in the capital of Hohhot on Monday
* Major square in Hohhot under heavy security
* Top party chief meets students
By Ben Blanchard
HOHHOT, May 29 (Reuters) - Security forces sealed off parts of the capital of China's vast northern region of Inner Mongolia on Sunday to prevent residents from staging a planned protest after the hit-and-run death of a herder.
Ethnic Mongolians have been protesting for six days over the death this month of a Mongolian herder, Mergen, after being struck by a coal truck. The government announced the arrest of two Han Chinese for homicide, but that failed to stem the anger.
Hundreds of paramilitary policemen and police in riot gear, armed with shields, batons and helmets, patrolled Hohhot's Xinhua Square, next to the Inner Mongolia radio and television station, after calls spread online for a protest on Monday.
Police also surrounded Ruyi Square, in front of the local government building, but elsewhere life went on as usual.
Chinese authorities sealed off parts of the northern region of Inner Mongolia, a resource-rich region strategically located on the borders of Russia and Mongolia, on Friday in what residents described as martial law.
In a rare sign of defiance, hundreds of China's Mongolians, who make up less than 20 percent of the roughly 24 million population of the Inner Mongolian Autonomous Region, have taken to the streets in other parts of the province.
Resentment against Han Chinese runs deep.
Inner Mongolia, which covers more than a 10th of China's land mass, is supposed to offer a high degree of self-rule, but Mongolians say the Han Chinese majority run the show and have been the main beneficiaries of economic development.
China's Mongolians rarely take to the streets, unlike Tibetans or Xinjiang's Uighurs, making the latest protests highly unusual.
The New York-based Southern Mongolian Human Rights Information Centre said Mongolians were planning further protests over the next few days, including in Hohhot, less than an hour's flight from Beijing.
HEIGHTENED SECURITY
Some schools in Hohhot said authorities had stepped up security.
"The school has told us to keep an eye for any illegal gathering these days as June 4 is coming," one man in a high school in Hohhot told Reuters, referring to the armed crackdown on pro-democracy protesters on June 4, 1989, in Beijing.
"Security is tight, there are many policemen in the streets," he added. He declined to give his name.
A worker at a university in Hohhot said three entrances had been sealed off and there was a heavy police presence. He declined to comment on the reason. Telephone calls to the Hohhot government and its propaganda department went unanswered.
Police in Hohhot later detained a Reuters reporter and questioned him on why he had come to the city.
A government official then told another Reuters reporter that foreign journalists needed to apply three days in advance if they wished to report in the city. "Everything is stable in Hohhot, it is very safe here," said the official.
In the ruling party's first response to the protests, Inner Mongolia's Communist Party chief Hu Chunhua told students and teachers on Friday he was representing the government to seek their views on the situation. He said "public anger has been immense", state media reported.
"Please be assured, teachers and students, that the suspects ... will be punished severely and quickly, so that the ... rights of victims and their families can be resolutely safeguarded," the Inner Mongolian Daily cited Hu as saying.
But Hu's reassurances are unlikely to bring lasting calm, said Enghebatu Togochog of the Southern Mongolian Human Rights Information Centre.
"The conflict between the Chinese authorities' attempts to exploit the natural resources and the disrespect of the Mongolians' way of life will not be easily resolved, unless the Chinese government changes its policy," he said. (Additional reporting by Sui-Lee Wee and Huang Yan, Writing by Sui-Lee Wee,;Editing by Nick Macfie and Elizabeth Piper, sourced Thomson Reuters)
China considering domestic iron ore index - CISA official
Monday, 30 May 2011
China's steel industry body is considering launching a domestic iron ore price index to compete with the likes of Metal Bulletin and Platts.
An official told Reuters that China Iron & Steel Association which has opposed the use of foreign indexes in the setting of iron ore prices wants its own pricing mechanism to enhance its bargaining power.
Local media said CISA plans to begin with a domestic price index and extend it to imported iron ore at a later stage.
Deputy secretary general Mr Li Xinchuang told Reuters that but there is still no specific time frame for the launch of the index.
An official told Reuters that China Iron & Steel Association which has opposed the use of foreign indexes in the setting of iron ore prices wants its own pricing mechanism to enhance its bargaining power.
Local media said CISA plans to begin with a domestic price index and extend it to imported iron ore at a later stage.
Deputy secretary general Mr Li Xinchuang told Reuters that but there is still no specific time frame for the launch of the index.
Mr Li said that "We have done a lot of research into how to make the index in order to guide both the domestic and import market, but there is no time frame yet.”
Global miners Vale, Rio Tinto and BHP Billiton abandoned a decades old annual pricing mechanism in 2010 and instead adopted quarterly contract prices based on indexes published by Metal Bulletin, Platts and the Steel Index. While Chinese steelmakers have had little choice but to accept the new pricing system, CISA has continued to question the accuracy of the big overseas indexes, saying they are vulnerable to speculation and manipulation. (sourced Reuters)
Global miners Vale, Rio Tinto and BHP Billiton abandoned a decades old annual pricing mechanism in 2010 and instead adopted quarterly contract prices based on indexes published by Metal Bulletin, Platts and the Steel Index. While Chinese steelmakers have had little choice but to accept the new pricing system, CISA has continued to question the accuracy of the big overseas indexes, saying they are vulnerable to speculation and manipulation. (sourced Reuters)
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