Monday, 22 Aug 2011
It is reported that one of the largest Innu communities in Quebec in eastern Canada is embroiled in a row with an iron ore mining company.
The company, Cap Ex Ventures, is exploring for iron ore in an area known as the Labradar Trough, a rich seam of minerals that stretches for hundreds of miles along the provincial border between Quebec and Labrador, the heart of Innu territory.
The long history of mining in this area has already taken a huge toll on the rich hunting grounds, with many of the rivers dammed for hydro power to feed the smelters needed to turn the ore into iron and steel. A railway was built into the region in the 1950s to transport the ore.
One of the largest Innu communities that uses this area for hunting, gathering and trapping is the Innu band known as Uashat mak Mani Utenam (also known as Sept Iles). They do not want Cap Ex Ventures to enter their hunting grounds until the company has formally committed to allow full environmental monitoring of their operations, but the company has gone ahead anyway.
Mr Armand MacKenzie, a spokesman for the Innu, said that "We expressed serious environmental, social and cultural concerns to the company: they’re showing a disrespectful attitude. We are open to constructive dialogue, but any exploration activity or mining activity on our lands, that affects our natural resources, needs our consent, that' a fundamental principle."
In a statement, Cap Ex Ventures said that "The company remains committed to discussions with the Innu of Sept Iles. The Company will continue to inform the Innu of Sept Iles of its activities."
(sourced SurvivalInternational)
Monday, August 22, 2011
Tokyo Steel prices cut,H-beam down Y2,000/T
Mon Aug 22, 2011
* Second price cut this year to fend off imports
* Price cut slightly smaller than market expected
TOKYO Aug 22 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it will cut product prices for the second time this year as the yen's rise has opened up a big price gap between domestic products and imports.
The company will cut prices by 2,000-4,000 yen ($26-52) per tonne for September, or 2 to 5 percent, its second across-the-board price cut in three months.
The price cut was slightly smaller than the market expectations of around 3,000-5,000 yen.
"There are signs of a pickup in demand as carmakers are ramping up production and large development projects in the Tokyo area are about to start," Tokyo Steel director Naoto Ohori told a news conference. "We need to head off imports to tap this demand."
The company cut its price for H-beams, a key product used in construction, by 2.6 percent to 74,000 yen ($971) per tonne from 76,000 yen, after keeping prices unchanged for three months.
Japan's imports of steel products, mostly hot- and cold-rolled coils, rose in June to an almost six-year high of 420,000 tonnes. China's steel exports exceeded 4 million tonnes for the fourth straight month in June as domestic demand slowed, causing an oversupply in Asian markets. South Korea is also boosting exports.
Tokyo Steel's move is in contrast with Asia' other big exporters, which are beginning to raise prices to offset high input costs.
Baoshan Iron & Steel Co Ltd , China's top listed steelmaker, said this month it will raise prices of its main products for September bookings, in anticipation that demand will pick up in the peak consumption season.
Nippon Steel Corp , Japan's top maker of H-beams, is currently operating at 30 percent of its H-beam capacity in an attempt to tighten the market.
The company this month said its inventories of H-beam steel for spot customers fell 4.2 percent to 206,300 tonnes at the end of July, the first decrease in seven months but still at a high level. ($1 = 76.245 Japanese Yen)
(sourced Reuters)
* Second price cut this year to fend off imports
* Price cut slightly smaller than market expected
TOKYO Aug 22 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it will cut product prices for the second time this year as the yen's rise has opened up a big price gap between domestic products and imports.
The company will cut prices by 2,000-4,000 yen ($26-52) per tonne for September, or 2 to 5 percent, its second across-the-board price cut in three months.
The price cut was slightly smaller than the market expectations of around 3,000-5,000 yen.
"There are signs of a pickup in demand as carmakers are ramping up production and large development projects in the Tokyo area are about to start," Tokyo Steel director Naoto Ohori told a news conference. "We need to head off imports to tap this demand."
The company cut its price for H-beams, a key product used in construction, by 2.6 percent to 74,000 yen ($971) per tonne from 76,000 yen, after keeping prices unchanged for three months.
Japan's imports of steel products, mostly hot- and cold-rolled coils, rose in June to an almost six-year high of 420,000 tonnes. China's steel exports exceeded 4 million tonnes for the fourth straight month in June as domestic demand slowed, causing an oversupply in Asian markets. South Korea is also boosting exports.
Tokyo Steel's move is in contrast with Asia' other big exporters, which are beginning to raise prices to offset high input costs.
Baoshan Iron & Steel Co Ltd , China's top listed steelmaker, said this month it will raise prices of its main products for September bookings, in anticipation that demand will pick up in the peak consumption season.
Nippon Steel Corp , Japan's top maker of H-beams, is currently operating at 30 percent of its H-beam capacity in an attempt to tighten the market.
The company this month said its inventories of H-beam steel for spot customers fell 4.2 percent to 206,300 tonnes at the end of July, the first decrease in seven months but still at a high level. ($1 = 76.245 Japanese Yen)
(sourced Reuters)
Vale Mocambique to start exporting coal from Moatize in August
Monday, 22 Aug 2011
macauhub reported that Mozambican subsidiary of Brazilian mining giant Vale, Vale Moçambique is due this month to start exporting coal mined in Moatize, Tete province, to the European market.
The report cited Mr Vanessa Bernardo coordinator of Vale communication and development office as saying that within the next few days a ship would dock at the port of Beira that will carry the coal that started being transported last week from the mine to the coal terminal at the port along the Sena railroad.
The Moatize coal mine, in the coal basin of the same name, which in this first phase involves investment of USD 1.658 billion, will produce 11 million tonnes of metallurgical and thermal coal per year and the latter will also be used for the company’s own consumption to fire its power plant and to link up to the Mozambican national grid.
Brazil’s Vale, which set up in Moatize in 2004, has a concession on one of the world’s largest coal reserves and the company expects positive results in the near future.
The Moatize project which is currently Vale’s largest investment in the coal sector, is part of the group’s strategy to become a benchmark in the world coal sector and it also has a portfolio of mining projects in Australia and Colombia, as well as minority stakes in two partnerships in China.
(sourced Macauhub)
macauhub reported that Mozambican subsidiary of Brazilian mining giant Vale, Vale Moçambique is due this month to start exporting coal mined in Moatize, Tete province, to the European market.
The report cited Mr Vanessa Bernardo coordinator of Vale communication and development office as saying that within the next few days a ship would dock at the port of Beira that will carry the coal that started being transported last week from the mine to the coal terminal at the port along the Sena railroad.
The Moatize coal mine, in the coal basin of the same name, which in this first phase involves investment of USD 1.658 billion, will produce 11 million tonnes of metallurgical and thermal coal per year and the latter will also be used for the company’s own consumption to fire its power plant and to link up to the Mozambican national grid.
Brazil’s Vale, which set up in Moatize in 2004, has a concession on one of the world’s largest coal reserves and the company expects positive results in the near future.
The Moatize project which is currently Vale’s largest investment in the coal sector, is part of the group’s strategy to become a benchmark in the world coal sector and it also has a portfolio of mining projects in Australia and Colombia, as well as minority stakes in two partnerships in China.
(sourced Macauhub)
Gas leak in coal mine kills 7 in South West China
Monday, 22 Aug 2011
Xinhua reported that at least seven workers were killed in a coal mine gas leak in Southwest China Guizhou Province Thursday.
A spokesman with the Guizhou Provincial Work Safety Administration said the accident took place at about 3:30 PM at the Feitian Coal Mine in Zhijin County. Sixteen miners were lifted above ground, but two had died and five others died en route to hospital.
The spokesman said a rescue operation is continuing.
It was not immediately known how many miners were working underground when the accident happened.
(sourced from Xinhua)
Xinhua reported that at least seven workers were killed in a coal mine gas leak in Southwest China Guizhou Province Thursday.
A spokesman with the Guizhou Provincial Work Safety Administration said the accident took place at about 3:30 PM at the Feitian Coal Mine in Zhijin County. Sixteen miners were lifted above ground, but two had died and five others died en route to hospital.
The spokesman said a rescue operation is continuing.
It was not immediately known how many miners were working underground when the accident happened.
(sourced from Xinhua)
WPG Resources sells iron ore assets to OneSteel
Monday, 22 Aug 2011
OneSteel Ltd has bought iron ore assets in South Australia including Peculiar Knob from WPG Resources Ltd for AUD 346 million, as it focuses more on iron ore exports.
OneSteel will also expand its export port facilities at Whyalla in SA to 12 million tonnes per annum by the fourth quarter of calendar 2012, from the current capacity of 6.5 million tonnes to 7.0 million tonnes, the company says.
The port expansion will cost about AUD 200 million.
The proposed sale of WPG Resources iron ore assets represents a return on WPG’s iron ore investment of AUD 70 million of about 400% and equivalent to AUD 1.40 per share in a market where cash is king. WPG will distribute the after-tax proceeds of the sale to shareholders upon requisite approvals.
The transaction will deliver a distribution of cash that exceeds WPG’s current share price, with the additional benefits of franking credits.
The transaction will be effected by the sale of WPG’s subsidiaries Southern Iron Pty Ltd, Central Iron Pty Ltd and Coober Pedy Resources Pty Ltd on a cash and debtfree basis.
Southern Iron’s principal project assets are the Peculiar Knob mining lease and the Buzzard mineral claim and all of the approvals and tenements in the Coober Pedy area necessary to develop the Peculiar Knob project. Central Iron owns the Hawks Nest exploration licence, while Coober Pedy Resources owns the Mt Brady and Windy Valley tenements.
The sale does not include WPG’s subsidiary Spencer Gulf Ports Pty Ltd which owns land in Port Pirie and the right to develop a bulk commodities export facility pursuant to the development consent previously announced. Neither does it include Southern Coal Holdings Pty Ltd, the joint venture vehicle with Evergreen Energy Inc that owns the Penrhyn and Lochiel North coal deposits and which has the exclusive rights to use Evergreen’s coal upgrading technology in Australia for the first 15 mtpa of product coal from any project, not just from tenements that it currently holds.
The sale is contingent on a number of items including approval by WPG’s shareholders. In the absence of a superior proposal
1. WPG’s Board will unanimously recommend that WPG’s shareholders vote in favour of the sale; and
2. Each director of WPG will vote (or procure the voting) of all shares held or controlled by him or her in favour of the sale.
The general meeting of shareholders that will be convened to consider the sale will be held on or about 4 October 2011.
The Company’s iron ore deposits lie in the Peculiar Knob and Hawks Nest tenements in the Gawler Craton south of Coober Pedy with a resource of 19.2 million tonnes at 64.0% iron that the company intends to bring into production in 2011 at a rate of 3.3 million tonnes per year for an approximate five year mine life. The coal projects are located in the Coober Pedy region and in the southern part of SA at Lochiel and Pidinga.
(sourced proactiveinvestors)
OneSteel Ltd has bought iron ore assets in South Australia including Peculiar Knob from WPG Resources Ltd for AUD 346 million, as it focuses more on iron ore exports.
OneSteel will also expand its export port facilities at Whyalla in SA to 12 million tonnes per annum by the fourth quarter of calendar 2012, from the current capacity of 6.5 million tonnes to 7.0 million tonnes, the company says.
The port expansion will cost about AUD 200 million.
The proposed sale of WPG Resources iron ore assets represents a return on WPG’s iron ore investment of AUD 70 million of about 400% and equivalent to AUD 1.40 per share in a market where cash is king. WPG will distribute the after-tax proceeds of the sale to shareholders upon requisite approvals.
The transaction will deliver a distribution of cash that exceeds WPG’s current share price, with the additional benefits of franking credits.
The transaction will be effected by the sale of WPG’s subsidiaries Southern Iron Pty Ltd, Central Iron Pty Ltd and Coober Pedy Resources Pty Ltd on a cash and debtfree basis.
Southern Iron’s principal project assets are the Peculiar Knob mining lease and the Buzzard mineral claim and all of the approvals and tenements in the Coober Pedy area necessary to develop the Peculiar Knob project. Central Iron owns the Hawks Nest exploration licence, while Coober Pedy Resources owns the Mt Brady and Windy Valley tenements.
The sale does not include WPG’s subsidiary Spencer Gulf Ports Pty Ltd which owns land in Port Pirie and the right to develop a bulk commodities export facility pursuant to the development consent previously announced. Neither does it include Southern Coal Holdings Pty Ltd, the joint venture vehicle with Evergreen Energy Inc that owns the Penrhyn and Lochiel North coal deposits and which has the exclusive rights to use Evergreen’s coal upgrading technology in Australia for the first 15 mtpa of product coal from any project, not just from tenements that it currently holds.
The sale is contingent on a number of items including approval by WPG’s shareholders. In the absence of a superior proposal
1. WPG’s Board will unanimously recommend that WPG’s shareholders vote in favour of the sale; and
2. Each director of WPG will vote (or procure the voting) of all shares held or controlled by him or her in favour of the sale.
The general meeting of shareholders that will be convened to consider the sale will be held on or about 4 October 2011.
The Company’s iron ore deposits lie in the Peculiar Knob and Hawks Nest tenements in the Gawler Craton south of Coober Pedy with a resource of 19.2 million tonnes at 64.0% iron that the company intends to bring into production in 2011 at a rate of 3.3 million tonnes per year for an approximate five year mine life. The coal projects are located in the Coober Pedy region and in the southern part of SA at Lochiel and Pidinga.
(sourced proactiveinvestors)
Japan JFE says aims to boost ties with India's JSW
Mon Aug 22, 2011
TOKYO Aug 22 (Reuters) - JFE Steel Corp , the world's fifth-biggest steelmaker, said on Monday it would strengthen its ties with India's JSW Steel Ltd by either boosting its stake in the company or increasing its presence on the smaller firm's board.
Under so-called 'equity-method' accounting rules, JFE could report part of the Indian company's net profit in its consolidated results if it holds more than 15 percent of its stock or has representation on its board of directors.
"We hope to make JSW an equity-method company of our group," Eiji Hayashida, president of JFE Steel, told the Nikkei business daily in an interview on Sunday.
"I have told (managing director Sajjan) Jindal about our intentions and we have had no negative response so far."
JFE last year spent about $1 billion acquiring a 14.9 percent stake in JSW, India's No.3 steelmaker, in an attempt to gain a foothold in the fast-growing Indian market.
The stake, just shy of the level that would have triggered a mandatory public offering at that time, was JFE's first major capital investment in a foreign peer.
Hayashida also said in the Nikkei that JFE planed to join JSW's project to build a new integrated steel mill in India and that it was in talks with management on its ownership ratio.
"Our ownership will be below 50 percent," he said, citing potential difficulties for a foreign company in managing large numbers of local workers.
CIL to liquidate 25 million tonne inventory - Mr NC Jha
Monday, 22 Aug 2011 |CNBC-TV18
Coal India the world's biggest coal miner by output, has become India's most valued company after overtaking big daddy Reliance Industries in terms of market capitalization. Its stock touched an intraday high of INR 397.65 and an intraday low of INR 387.50.
Mr NC Jha chairman of Coal India feels delighted to hear that the company has become the most valuable company in India. Speaking to CNBC-TV18’s, Mr Jha said that the company aims to liquidate 25 million tonne coal going forward.
Q - It is a special day for investors in Coal India because that is your stock, your company or its share has become the top market cap company today it beats Reliance which held that position for so long now. What can you tell your investors in terms of growth prospects at this juncture? What kind of Coal off take you can do this year and what kind of profit growth do you see in FY12?
A - I am also delighted to hear that our company has become the most valuable company in India.
As I had promised right from the beginning that this is the year of off take for Coal India and we have a plan to dispatch 454 million tonne of coal during this year compared to 424 million tonne that we did last year. Additional off take of 30 million tonne would mean a lot of revenues.
Coal India the world's biggest coal miner by output, has become India's most valued company after overtaking big daddy Reliance Industries in terms of market capitalization. Its stock touched an intraday high of INR 397.65 and an intraday low of INR 387.50.
Mr NC Jha chairman of Coal India feels delighted to hear that the company has become the most valuable company in India. Speaking to CNBC-TV18’s, Mr Jha said that the company aims to liquidate 25 million tonne coal going forward.
Q - It is a special day for investors in Coal India because that is your stock, your company or its share has become the top market cap company today it beats Reliance which held that position for so long now. What can you tell your investors in terms of growth prospects at this juncture? What kind of Coal off take you can do this year and what kind of profit growth do you see in FY12?
A - I am also delighted to hear that our company has become the most valuable company in India.
As I had promised right from the beginning that this is the year of off take for Coal India and we have a plan to dispatch 454 million tonne of coal during this year compared to 424 million tonne that we did last year. Additional off take of 30 million tonne would mean a lot of revenues.
Iron Ore-Shanghai rebar steady, firm Chinese demand
Mon Aug 22, 2011
* Shanghai rebar flat after falling 1 pct in past 2 days
* Spot iron ore prices extend gains
By Manolo Serapio Jr
SINGAPORE, Aug 22 (Reuters) - China steel futures steadied on Monday after two sessions of losses, reflecting outlook for firm demand in the world's biggest consumer which has supported prices of key steelmaking ingredient iron ore.
The most-traded January rebar contract on the Shanghai Futures Exchange was flat at 4,814 yuan per tonne by the midday break, after falling 1 percent in the past two trading days.
Strong steel demand in China's construction sector has propped up rebar prices, encouraging mills to buy more iron ore.
"Demand from cheap housing will consume part of the surplus capacity. Almost all steel mills in China are now in full operation," said an iron ore trader in China's eastern Shandong province.
Daily steel output in China, also the world's No. 1 steel producer, has stayed above 1.9 million tonnes since late February, compared to an average of about 1.7 million tonnes last year.
Rebar prices in the physical market, currently at around 4,770 yuan per tonne, may rise to more than 5,000 yuan during the remaining months of the year, the trader said.
Iron ore purchases are likely to extend this week with China's steel output expected to stay strong. Last week, there was brisk demand for Australian cargoes amid limited Indian supplies.
"Demand for Australia's iron ore is likely to hold up as long as steel demand in China remains robust," Commonwealth Bank of Australia said in a note.
"As long as China's steel output remains robust, and iron ore supply relatively tight, we currently see a supportive environment for iron ore pricing," the bank said, noting that Chinese steel prices remained well bid in recent months.
Iron ore with 62 percent iron content rose 0.4 percent to $179.50 a tonne on Friday, based on Platts index IODBZ00-PLT, matching the Aug. 4 level.
The reference price at The Steel Index .IO62-CNI=SI gained 0.1 percent at $177.30 a tonne and Metal Bulletin's gauge .IO62-CNO=MB edged up less than 0.1 percent to $177.44.
"Inquiries have increased and I think we'll see more mills restocking this week. But I think some buyers are also being cautious given the uncertainty over the global economy," said a Singapore-based iron ore trader.
Offers for imported iron ore in China were steady on Monday, with Australian Newman 62-percent grade fines at $181-$183 a tonne, including freight, and Indian 63.5/63 grade ore at $185-$187, according to Chinese consultancy Umetal.
In the futures market, the most-traded August iron ore contract on the Singapore Mercantile Exchange was unchanged at $177.50 a tonne.
Volumes traded on SMX's iron ore futures had been thin since the bourse launched the contract on Aug. 12 with market participants opting for widely-traded swaps instead.
(sourced Reuters)
* Shanghai rebar flat after falling 1 pct in past 2 days
* Spot iron ore prices extend gains
By Manolo Serapio Jr
SINGAPORE, Aug 22 (Reuters) - China steel futures steadied on Monday after two sessions of losses, reflecting outlook for firm demand in the world's biggest consumer which has supported prices of key steelmaking ingredient iron ore.
The most-traded January rebar contract on the Shanghai Futures Exchange was flat at 4,814 yuan per tonne by the midday break, after falling 1 percent in the past two trading days.
Strong steel demand in China's construction sector has propped up rebar prices, encouraging mills to buy more iron ore.
"Demand from cheap housing will consume part of the surplus capacity. Almost all steel mills in China are now in full operation," said an iron ore trader in China's eastern Shandong province.
Daily steel output in China, also the world's No. 1 steel producer, has stayed above 1.9 million tonnes since late February, compared to an average of about 1.7 million tonnes last year.
Rebar prices in the physical market, currently at around 4,770 yuan per tonne, may rise to more than 5,000 yuan during the remaining months of the year, the trader said.
Iron ore purchases are likely to extend this week with China's steel output expected to stay strong. Last week, there was brisk demand for Australian cargoes amid limited Indian supplies.
"Demand for Australia's iron ore is likely to hold up as long as steel demand in China remains robust," Commonwealth Bank of Australia said in a note.
"As long as China's steel output remains robust, and iron ore supply relatively tight, we currently see a supportive environment for iron ore pricing," the bank said, noting that Chinese steel prices remained well bid in recent months.
Iron ore with 62 percent iron content rose 0.4 percent to $179.50 a tonne on Friday, based on Platts index IODBZ00-PLT, matching the Aug. 4 level.
The reference price at The Steel Index .IO62-CNI=SI gained 0.1 percent at $177.30 a tonne and Metal Bulletin's gauge .IO62-CNO=MB edged up less than 0.1 percent to $177.44.
"Inquiries have increased and I think we'll see more mills restocking this week. But I think some buyers are also being cautious given the uncertainty over the global economy," said a Singapore-based iron ore trader.
Offers for imported iron ore in China were steady on Monday, with Australian Newman 62-percent grade fines at $181-$183 a tonne, including freight, and Indian 63.5/63 grade ore at $185-$187, according to Chinese consultancy Umetal.
In the futures market, the most-traded August iron ore contract on the Singapore Mercantile Exchange was unchanged at $177.50 a tonne.
Volumes traded on SMX's iron ore futures had been thin since the bourse launched the contract on Aug. 12 with market participants opting for widely-traded swaps instead.
(sourced Reuters)
SC panel calls for ban on all private mining in Karnataka
Monday, 22 Aug 2011
TOI reported that Central Empowered Committee, an environmental panel that reports directly to the Supreme Court, on Friday recommended a complete ban on iron ore mining in Tumkur and Chitradurga districts of Karnataka, which border the now notorious Bellary district.
Agreeing with the state lokayukta, the anti corruption watchdog, the CEC filed a report before the apex court that said large scale and reckless mining was being carried out in these districts, particularly by private companies, seriously destroying the environment.
A three judge green bench headed by Chief Justice of India Mr SH Kapadia and including justices Mr Aftab Alam and Mr Swatanter Kumar sought the response of the union and the state government, as the CEC said mining was being conducted in an environmentally unsustainable manner for short-term gains.
The committee said much forest had been lost due to illegal mining of iron ore over 2,678 hectares in Tumkur and Chitradurga, with illegal mining and production in excess of the size of lease.
The report said that ''This court's July 29th order, by which mining operations have been suspended in Bellary, may be extended in respect of the mining leases in districts of Tumkur and Chitradurga.”
Submitting the CEC's report to the court, amicus curiae ADN Rao said the adverse impact on the environment in these two districts was identical to that seen in Bellary and advocated controlled mining as has been ordered by the apex court in Bellary.
This could in effect mean that all mining by private companies in Karnataka will be banned. In Bellary, after the Supreme Court order, mining is done only by state-run companies, and is meant to meet the requirement of the domestic steel industry, as export of iron ore has also been banned by the state government.
(sourced from TOI)
TOI reported that Central Empowered Committee, an environmental panel that reports directly to the Supreme Court, on Friday recommended a complete ban on iron ore mining in Tumkur and Chitradurga districts of Karnataka, which border the now notorious Bellary district.
Agreeing with the state lokayukta, the anti corruption watchdog, the CEC filed a report before the apex court that said large scale and reckless mining was being carried out in these districts, particularly by private companies, seriously destroying the environment.
A three judge green bench headed by Chief Justice of India Mr SH Kapadia and including justices Mr Aftab Alam and Mr Swatanter Kumar sought the response of the union and the state government, as the CEC said mining was being conducted in an environmentally unsustainable manner for short-term gains.
The committee said much forest had been lost due to illegal mining of iron ore over 2,678 hectares in Tumkur and Chitradurga, with illegal mining and production in excess of the size of lease.
The report said that ''This court's July 29th order, by which mining operations have been suspended in Bellary, may be extended in respect of the mining leases in districts of Tumkur and Chitradurga.”
Submitting the CEC's report to the court, amicus curiae ADN Rao said the adverse impact on the environment in these two districts was identical to that seen in Bellary and advocated controlled mining as has been ordered by the apex court in Bellary.
This could in effect mean that all mining by private companies in Karnataka will be banned. In Bellary, after the Supreme Court order, mining is done only by state-run companies, and is meant to meet the requirement of the domestic steel industry, as export of iron ore has also been banned by the state government.
(sourced from TOI)
Sunday, August 21, 2011
Indian steel majors may unite to bargain coking coal prices
Sunday, 21 Aug 2011
BL reported that large Indian steel makers, such as SAIL and TATA Steel, may try to emulate their Japanese counterparts and resort to collective bargaining with global coking coal producers.
Though such plans are still at an initial stage, SAIL has already created a consortium of large players, including TATA Steel, JSW Steel, Jindal Steel and Power Ltd, RINL and NMDC to bid for the Hajigak iron ore mines in Afghanistan.
Mr CS Verma chairman of SAIL said that “We are discussing with large steel makers on the need to have a collaborative approach to negotiate coal prices. Like the Japanese Steel Mills, we should also collectively bargain.”
Mr Verma said that the players were waiting to see how the consortium approach works out in the case of Afghan mines so that it could extend it to other areas.
Coking coal prices hit the roof in the early part of the year following disruption in supplies due to flooding in Australia. The drastic rise in prices had hit the bottomlines of Indian steel makers, who rely mainly on imports to meet their requirements. Coking coal prices, which were ruling at around USD 320 a tonne for the past couple of quarters, have not come down despite normalcy being restored in the Australian mines.
(Sourced from BL)
BL reported that large Indian steel makers, such as SAIL and TATA Steel, may try to emulate their Japanese counterparts and resort to collective bargaining with global coking coal producers.
Though such plans are still at an initial stage, SAIL has already created a consortium of large players, including TATA Steel, JSW Steel, Jindal Steel and Power Ltd, RINL and NMDC to bid for the Hajigak iron ore mines in Afghanistan.
Mr CS Verma chairman of SAIL said that “We are discussing with large steel makers on the need to have a collaborative approach to negotiate coal prices. Like the Japanese Steel Mills, we should also collectively bargain.”
Mr Verma said that the players were waiting to see how the consortium approach works out in the case of Afghan mines so that it could extend it to other areas.
Coking coal prices hit the roof in the early part of the year following disruption in supplies due to flooding in Australia. The drastic rise in prices had hit the bottomlines of Indian steel makers, who rely mainly on imports to meet their requirements. Coking coal prices, which were ruling at around USD 320 a tonne for the past couple of quarters, have not come down despite normalcy being restored in the Australian mines.
(Sourced from BL)
SAIL to lead Indian charge for iron ore mine acquisition in Afghan
Sunday, 21 Aug 2011
It is reported that Steel Authority of India Limited along with three public sector units and three private sector companies are to form a consortium to submit the final bid for the Hajigak iron ore mines in Afghanistan estimated to have reserves of around 1.8 billion tonnes.
This is the first time that consortium of public and private firms are teaming up to bid for a mining asset abroad.
Mr CS Verma chairman of SAIL said the three public sector units would be National Mineral Development Corporation, the Rashtriya Ispat Nigam Limited and SAIL, though he deferred naming the private companies that would bid for the mine.
Mr Verma said that "This will be a watershed event in public and private partnership.”
He preferred not to comment on the valuation of the mines, citing confidentiality clauses embedded in the deal.
The Hajigak deposits, located in the mountainous Bamiyan province, 130 kilometre West of Kabul, are among the biggest untapped reserves in the world with high quality magnetite with 63% iron content. According to reports, the Afghanistan government has estimated that the project will require investments of about USD 3 billion over a 30 year period, with the government allowing the entire output from the mines to be exported.
The Afghanistan government had recently extended the deadline for bidding to September 4 from it earlier August 2 deadlines. It has already indicated its preference for companies which would offer development plans from mining of iron ore to vertically integrated processes, including making of steel.
Besides SAIL and NMDC, other Indian companies like TATA Steel, JSW, Jindal Steel and Power, Bhushan Steel and Monnet Ispat are among the 15 Indian firms that have been shortlisted by the Afghanistan government.
(Sourced Mineweb.com)
It is reported that Steel Authority of India Limited along with three public sector units and three private sector companies are to form a consortium to submit the final bid for the Hajigak iron ore mines in Afghanistan estimated to have reserves of around 1.8 billion tonnes.
This is the first time that consortium of public and private firms are teaming up to bid for a mining asset abroad.
Mr CS Verma chairman of SAIL said the three public sector units would be National Mineral Development Corporation, the Rashtriya Ispat Nigam Limited and SAIL, though he deferred naming the private companies that would bid for the mine.
Mr Verma said that "This will be a watershed event in public and private partnership.”
He preferred not to comment on the valuation of the mines, citing confidentiality clauses embedded in the deal.
The Hajigak deposits, located in the mountainous Bamiyan province, 130 kilometre West of Kabul, are among the biggest untapped reserves in the world with high quality magnetite with 63% iron content. According to reports, the Afghanistan government has estimated that the project will require investments of about USD 3 billion over a 30 year period, with the government allowing the entire output from the mines to be exported.
The Afghanistan government had recently extended the deadline for bidding to September 4 from it earlier August 2 deadlines. It has already indicated its preference for companies which would offer development plans from mining of iron ore to vertically integrated processes, including making of steel.
Besides SAIL and NMDC, other Indian companies like TATA Steel, JSW, Jindal Steel and Power, Bhushan Steel and Monnet Ispat are among the 15 Indian firms that have been shortlisted by the Afghanistan government.
(Sourced Mineweb.com)
No plan to ban iron ore exports from India - Mr Sharma
Sunday, 21 Aug 2011
PTI reported that Indian union minister for commerce and industry Mr Anand Sharma ruled out a ban on iron ore exports, saying the surplus mineral must be exported.
Mr Anand said that "A considered view had been taken that the exports of iron ore must continue. India has enough surplus particularly of iron ore fines.”
He added that domestic industry largely uses iron ore lumps, while the country exports mainly iron ore fines.
Mr Sharma said that "Therefore, mined iron ore which is in surplus must be exported.”
The issues had arisen following an apex court order of late last month, banning on all mining activities in Bellary in Karnataka. The apex court in its subsequent hearing later on August 5 partially lifted the ban and allowed only state run NMDC to carry out mining activities in the region with a cap of 1 million tonnes per month. The apex court had also said that iron ore produced from the Bellary region will not be exported.
Mr Sharma said that "This particular intervention by Supreme Court was on a limited context on what was happening, particularly in the state of Karnataka in Bellary, where there was illegal mining of iron ore. Illegal mining is taking place in some other parts of the country as well, but that does not lead to a situation where that iron ore does not get exported. This issue will get suitably resolved.”
(Sourced from PTI)
PTI reported that Indian union minister for commerce and industry Mr Anand Sharma ruled out a ban on iron ore exports, saying the surplus mineral must be exported.
Mr Anand said that "A considered view had been taken that the exports of iron ore must continue. India has enough surplus particularly of iron ore fines.”
He added that domestic industry largely uses iron ore lumps, while the country exports mainly iron ore fines.
Mr Sharma said that "Therefore, mined iron ore which is in surplus must be exported.”
The issues had arisen following an apex court order of late last month, banning on all mining activities in Bellary in Karnataka. The apex court in its subsequent hearing later on August 5 partially lifted the ban and allowed only state run NMDC to carry out mining activities in the region with a cap of 1 million tonnes per month. The apex court had also said that iron ore produced from the Bellary region will not be exported.
Mr Sharma said that "This particular intervention by Supreme Court was on a limited context on what was happening, particularly in the state of Karnataka in Bellary, where there was illegal mining of iron ore. Illegal mining is taking place in some other parts of the country as well, but that does not lead to a situation where that iron ore does not get exported. This issue will get suitably resolved.”
(Sourced from PTI)
Coal inventories at European ports up
Sunday, 21 Aug 2011
Coal inventories at leading ports in Europe climbed to this year’s highest level as transportation costs rose.
According to Elias Chibani, a trader based in Amsterdam with the energy-trading unit of Vattenfall AB, the largest Nordic utility, stockpiles at Europees Massagoed-Overslagbedrijf BV or Emo, the largest coal terminal in Rotterdam, come to 3.14 million tonnes. They total 1.75 million tonnes at the OBA terminal at Amsterdam.
Chibani said that “That is the highest stocking level since the beginning of this year.” According to a report by Barclays Capital, end users prefer to keep coal at ports because of elevated transportation expenses caused by low water levels in the Rhine River.
Chibani said that “There are more sellers than buyers now, after the restocking by utilities in the past few weeks.”
(Sourced Bloomberg)
Coal inventories at leading ports in Europe climbed to this year’s highest level as transportation costs rose.
According to Elias Chibani, a trader based in Amsterdam with the energy-trading unit of Vattenfall AB, the largest Nordic utility, stockpiles at Europees Massagoed-Overslagbedrijf BV or Emo, the largest coal terminal in Rotterdam, come to 3.14 million tonnes. They total 1.75 million tonnes at the OBA terminal at Amsterdam.
Chibani said that “That is the highest stocking level since the beginning of this year.” According to a report by Barclays Capital, end users prefer to keep coal at ports because of elevated transportation expenses caused by low water levels in the Rhine River.
Chibani said that “There are more sellers than buyers now, after the restocking by utilities in the past few weeks.”
(Sourced Bloomberg)
S.Africa to exceed mine transformation target: minister
Sun Aug 21, 2011
By Ed Stoddard, Reuters
JOHANNESBURG (Reuters) - South Africa's Mines Minister Susan Shabangu said she is confident that a government-set ownership target for blacks in the mining sector would be exceeded and, if the process was done right, the policy may no longer be needed.
The government's mining charter calls for 26 percent of the mining industry in Africa's largest economy to be transferred to black owners by 2014 as part an empowerment drive to rectify the disparities of white apartheid rule.
"I am confident that we will exceed the 26 percent by 2014... We have seen progress," Shabangu told Reuters on Saturday on the sidelines of a mining conference.
Investors have been unnerved by nationalization talks by radical elements in the ruling African Nation Congress, which has focused attention on issues such as profits, safety and racial imbalances in ownership.
The industry has in the past made scant progress on the transformation process and an annual review of the industry on this score is currently taking place, a process Shabangu said was helping to keep companies on track.
"What we are saying is that every year we have got to go and do reviews," she said.
Only 8.9 percent of mines were owned by blacks in 2009, well below a target of 15 percent.
Shabangu said changing or raising targets was not on the cards, but she wanted to see black-owned mining companies that were sustainable. If this was achieved, the empowerment policy in the industry might no longer be needed, she said.
"It's about making sure whatever companies are there, are sustainable. As soon as they become sustainable they can roll on their own without necessarily setting targets," Shabangu said.
One problem has been companies that got into the sector with little or no experience, that were not been viable or that were seen as fronts for white capital.
Mine safety is another major issue and Shabangu on Thursday said the pursuit of profits was behind amounting death toll in the industry.
The minister said she planned to publicly comment on a report submitted by the platinum industry on rock falls and fatalities.
"On the basis of that report we have to take steps to put into place to avoid or minimise rock falls in the platinum sector," she said.
South Africa is the worlds largest platinum producer and a major supplier of gold and coal.
By Ed Stoddard, Reuters
JOHANNESBURG (Reuters) - South Africa's Mines Minister Susan Shabangu said she is confident that a government-set ownership target for blacks in the mining sector would be exceeded and, if the process was done right, the policy may no longer be needed.
The government's mining charter calls for 26 percent of the mining industry in Africa's largest economy to be transferred to black owners by 2014 as part an empowerment drive to rectify the disparities of white apartheid rule.
"I am confident that we will exceed the 26 percent by 2014... We have seen progress," Shabangu told Reuters on Saturday on the sidelines of a mining conference.
Investors have been unnerved by nationalization talks by radical elements in the ruling African Nation Congress, which has focused attention on issues such as profits, safety and racial imbalances in ownership.
The industry has in the past made scant progress on the transformation process and an annual review of the industry on this score is currently taking place, a process Shabangu said was helping to keep companies on track.
"What we are saying is that every year we have got to go and do reviews," she said.
Only 8.9 percent of mines were owned by blacks in 2009, well below a target of 15 percent.
Shabangu said changing or raising targets was not on the cards, but she wanted to see black-owned mining companies that were sustainable. If this was achieved, the empowerment policy in the industry might no longer be needed, she said.
"It's about making sure whatever companies are there, are sustainable. As soon as they become sustainable they can roll on their own without necessarily setting targets," Shabangu said.
One problem has been companies that got into the sector with little or no experience, that were not been viable or that were seen as fronts for white capital.
Mine safety is another major issue and Shabangu on Thursday said the pursuit of profits was behind amounting death toll in the industry.
The minister said she planned to publicly comment on a report submitted by the platinum industry on rock falls and fatalities.
"On the basis of that report we have to take steps to put into place to avoid or minimise rock falls in the platinum sector," she said.
South Africa is the worlds largest platinum producer and a major supplier of gold and coal.
US coal exports in June 2011 up by 23pct YoY
Sunday, 21 Aug 2011
Argus reported that US coal exports reached second highest level of the year in June 2011 despite coking coal volumes falling slightly from May.
According to US Census Bureau data, total exports increased by 23% YoY to 9.1 million tons from 7.39 million tons in June 2010 and marked a slight gain from 9.04 million tons in May 2011. US exports for the first half of 2011 rose to 53.6 million tons, up by 35% YoY from 39.7 million tons in the year ago period to set an annualized pace of 107 million tons. In 2010, US exports totaled 81.7 million tons.
While coking coal again accounted for the majority of total coal exports, the segment fell month to month to 5.79 million tons in June from 6.43 million tons in May. In contrast, shipments of all steam coal types, including anthracite, bituminous, lignite, non bituminous steam coals and sub bituminous coals, rose to 3.31 million tons in June from 2.61 million tons in May.
Among the six major US ports where coal is shipped, the Norfolk Census district saw the largest amount of shipments at 3.25 million tons, although coal exports from Norfolk actually declined for the third consecutive month.
June exports from New Orleans, the second highest exporting port, were at their second highest level for 2011 at 1.85 million tons, jumping from a flood slowed May when its volumes totaled 1.39 million tons.
Europe and Asia again were the two continents importing the most US coal. But while exports to Europe were at their highest monthly level this year, at 4.33 million tons, exports to Asia were at their lowest level for 2011, at 2.21 million tons.
While US coal exports were at their second highest level for the year in June, US coal imports were at their second lowest level as generators relied on ample inventories and as low natural gas prices encouraged fuel switching.
The US imported 970,196 tons of coal in June as compared with 1.31 million tons in May and 1.77 million tons a year ago. Imports of Colombian coal totaled 518,351 tons, off 58% from 1.23 million tons a year ago and off 41% from 876,399 tons in May.
(sourced ArgusMedia)
Argus reported that US coal exports reached second highest level of the year in June 2011 despite coking coal volumes falling slightly from May.
According to US Census Bureau data, total exports increased by 23% YoY to 9.1 million tons from 7.39 million tons in June 2010 and marked a slight gain from 9.04 million tons in May 2011. US exports for the first half of 2011 rose to 53.6 million tons, up by 35% YoY from 39.7 million tons in the year ago period to set an annualized pace of 107 million tons. In 2010, US exports totaled 81.7 million tons.
While coking coal again accounted for the majority of total coal exports, the segment fell month to month to 5.79 million tons in June from 6.43 million tons in May. In contrast, shipments of all steam coal types, including anthracite, bituminous, lignite, non bituminous steam coals and sub bituminous coals, rose to 3.31 million tons in June from 2.61 million tons in May.
Among the six major US ports where coal is shipped, the Norfolk Census district saw the largest amount of shipments at 3.25 million tons, although coal exports from Norfolk actually declined for the third consecutive month.
June exports from New Orleans, the second highest exporting port, were at their second highest level for 2011 at 1.85 million tons, jumping from a flood slowed May when its volumes totaled 1.39 million tons.
Europe and Asia again were the two continents importing the most US coal. But while exports to Europe were at their highest monthly level this year, at 4.33 million tons, exports to Asia were at their lowest level for 2011, at 2.21 million tons.
While US coal exports were at their second highest level for the year in June, US coal imports were at their second lowest level as generators relied on ample inventories and as low natural gas prices encouraged fuel switching.
The US imported 970,196 tons of coal in June as compared with 1.31 million tons in May and 1.77 million tons a year ago. Imports of Colombian coal totaled 518,351 tons, off 58% from 1.23 million tons a year ago and off 41% from 876,399 tons in May.
(sourced ArgusMedia)
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