Mozambique coal exports revenue to reach USD 15 billion

Tuesday, 08 Nov 201

Macauhub.com reported that Mozambique’s revenues from exports of coal mined in Tete province are estimated at between USD 15 billion and USD 17 billion according to a study published by Anglo-Australian group Rio Tinto.

The group, which this year took control of Australian company Riversdale Mining following a takeover bid also said it was preparing to make significant investments in order to move ahead with mining the coal reserves in the Mozambican province.

The study, published during a visit by the Mozambican president to the group’s facilities some 1,300 kilometres from the city of Perth in Western Australia, also said that the Rio Tinto group would, by 2016, employ over 3,000 workers.

The chief executive of Rio Tinto Coal Mozambique, Mr Eric Finlayson said that the company planned to introduce the company’s worldwide standards for health, safety, the environment, community, human resources and construction to it Mozambican operations.

He said that “Rio Tinto wants to develop its coal projects in the Tete basin as quickly and safely as possible adding that there was a pressing need to resolve logistics issues which are currently a problem that is affecting exports.

Coal from Tete is currently exported via the port of Beira in the central province of Sofala and which is some 575 kilometres from the Moatize coal basin which can be reached via the Sena railroad or by truck.

(sourced Macauhub)

Profits jump 75 percent for CAP SA on higher steel and iron ore sales

Tuesday, 08 November 2011

Chile's CAP SA reported net profit of $143 million in Q3 2011, a 75 percent jump from $82 million in Q3 2010, and up from earnings of $138 million in Q2. Q3 earnings were also the highest quarterly earnings for CAP SA ever. Profit also increased 112 percent for the first nine months of the year to $363.5 million compared to the same period a year ago.

Both higher steel and iron ore prices contributed to the increase in quarterly profit, which rose on average of 12 percent, as shipments jumped 50 percent to 3.5 million metric tons in Q3.

Since September, however, both tons traded and spot prices in CAP iron ore segment have plummeted, as a result of Chinese iron ore demand and activity, but the company does expect both demand and prices to recover.

Tags: coated , iron ore , rebar , wire rod , hrc , crc , galvanized , Chile , China , flats , raw mat , longs , East Asia and Pacific , Far East , South America , mining , steelmaking , fin. Reports
sourced:steelorbis

China's Coal Imports steam Ahead

Tuesday, 08 November 11

Chinese seaborne coal imports have grown greatly in recent years, up from 39.2mt in 2008 to 167.7mt in 2010, with the result that China became a net coal importer in 2009.

Chinese seaborne steam coal imports equated to less than 5% of Chinese coal consumption in 2010. Despite this, China is now the world’s second largest steam coal importer, accounting for 13.7% of seaborne imports in 2010. Thus, any changes in China’s import volumes will have a major impact on the global seaborne steam coal trade.

The existence of a pricing arbitrage between domestic and international coal prices was the catalyst for the upturn in Chinese coal imports. In 2010, higher domestic prices led Chinese consumers to source more coal from the international market, where the price was lower. As the Graph of the Month shows, in January 2010, the price of Indonesian steam coal (spot price + freight) was $39 per tonne cheaper than the Chinese domestic price (spot price + coastal freight) in south China. As a result, China imported an average of 9.0mt per month in Q1 2010, compared to just 1.2mt in the same period of 2009.

However, during the first quarter of 2011, a reduced average of 5.4mt of coal was imported by China. This reflects a higher global coal price (up to $139 per tonne), which made domestic coal a more cost-effective option.

Other Factors
Since April this year, Chinese domestic steam coal prices have risen and now exceed international prices. Thus, Chinese imports reached 12.0mt in September, the largest volume on record.

Other factors, in addition to pricing, support this short-term movement towards coal imports. Firstly, there are fears about potential power shortages, following a sharp decline in hydroelectricity output (down 11.2% and 14.9% y-o-y in July and August respectively). Secondly, it is likely that there will also be heightened demand for coal for power generation, due to the onset of winter. The price arbitrage should stimulate imports, as should reports that the central government will lower taxes and port charges on imported coal.

Potential Limitations
In the medium-term, Chinese domestic coal production may be limited if the government drive for better mine safety leads to mine closures. However, this may not inevitably lead to heightened seaborne imports. Production in countries like Mongolia and regions like Inner Mongolia has been ramping up recently and a railway expansion programme, due to be completed in 2015, will facilitate large-scale coal exports from these areas.

However, it is important not to understate the long-term impact of Chinese demand on seaborne coal trade even though most coal currently consumed by China is produced domestically. Even if seaborne import’s share of Chinese coal demand were to increase by just 2% percentage points over the course of the next decade to stand at 5%, then(assuming long-term demand growth of 2.5%), this would equate to an extra 100mt of annual seaborne import requirements.

In the long-run, any developments along this line would offer a considerable upside for dry bulk trade.

source: Clarksons / Hellenic Shipping & coalspot.com

Newcastle thermal coal price drops to USD 116 a tonne

Tuesday, 08 Nov 2011

Bloomberg reported that power station coal prices at Australia’s Newcastle port an Asian benchmark, dropped by 0.8% in the week ended November 5th 2011.

According to the globalCOAL NEWC Index, coal prices at the New South Wales port declined to USD 116.94 a tonne from USD 117.89 the previous week.

(Sourced from Bloomberg)

India heavy industries ministry to push for 14pct duty on power gear imports

Sunday, 06 Nov 2011

India heavy industries minister, Mr Praful Patel said that his ministry supports the demand of local power equipment makers for the imposition of a 14% duty on imported power gear.

Mr Patel told reporters that “There is a strong case for a tax on imported equipment… Besides tariff barriers, other options are also being looked at.”

Mr Patel had met top executives from domestic power equipment firms such as Bharat Heavy Electricals Ltd, Larsen & Toubro Ltd and Bharat Forge Ltd, as well as power generation major NTPC Ltd, on the demand by power equipment firms for a level playing field vis à vis imported gear. Apart from industry players, senior officials of the ministries of heavy industries, power and commerce attended the meeting.

There was, however, no decision on the proposal for levying 14% duty on imported power equipment. Other options on the table include action in the form of safeguards or anti dumping measures that could be examined by the domestic manufacturers affected by cheap Chinese imports, in consultation with the Commerce Ministry.

The issue comes up at a time when equipment contracts for around 37,626 MW of upcoming power capacity are estimated to have been placed with Chinese vendors. Currently, equipment imports attract zero levy under the centre's Mega Power Policy for thermal projects of 1,000 MW and above.

(Sourced from BL)

Canada’s Salmon River Resources signs iron ore partnership with Chinese holding company

Sunday, 06 November 2011

Vancouver, British Columbia-based Salmon River Resources announced Friday that it has signed a non-binding Memorandum of Understanding (MOU) with Beijing, China-based General Steel Holdings Inc. regarding rights to purchase part of any future iron ore production from properties currently under option to and/or to be acquired by Salmon River, and to provide assistance to Salmon River in raising up to C$110 million (US$108 million) in private placement financings as well as committing to fund future capital expenditures and other development costs.

The MOU is intended to lay the groundwork for Salmon River to fund the exercise of its exclusive option to acquire 100 percent of Treppo Grande Iron Pty Ltd. and to fund future development costs of the Treppo Grande iron ore project. Under the MOU terms, the GS Group has also committed to fund future capital requirements as well as provide project management and coordination services to the Company in return for compensation equal to up to a 51 percent profit interest in the Treppo Grande project, on terms to be mutually agreed in the final definitive agreements.

In return for providing financing and management assistance, the GS Group will be granted a right to acquire up to 2 million metric tons per annum of hematite ore production from the properties acquired by Salmon River under the Treppo Grande Option or other properties acquired by Salmon River in the future, at 95 percent of prevailing market prices once production has commenced.

Tags: iron ore , Canada , China , raw mat , East Asia and Pacific , Far East , North America , mining , M&A

Iranian steel production increases significantly

Sunday, 06 Nov 2011

About 8 million tonnes of crude steel was produced in Iran during March 21st to October 22nd 2011, indicating a significant growth compared to the figure for the same period last year which was 7 million tonnes.

Based on a report released by the Industrial Development and Renovation Organization, the amount of steel produced by private companies during the period reached 702,000 tonnes showing a 53% YoY rise.

It added that Mobarakeh Steel Company, Khuzestan Steel Company, Isfahan Steel Mill produced 3.14 million tonnes, 1.969 million tonnes and 1.341 million tonnes of steel billets during the period to rank first to third in the country respectively.

About 9.672 million tonnes of steel products were manufactured during the said period, indicating a rise of 6.4% YoY.

According to the report, private companies manufactured some 30% of total steel products during the period.

Mobarakeh Steel Company produced 3.219 million tonnes, National Iranian Steel Company 1.991 million tonnes and Isfahan Steel Mill 1.558 million tonnes of steel products during the period to stand first to third in the country respectively.

According to a latest report by Iranian Mines and Mining Industries Development and Renovation Organization, the country increased export of crude steel and steel products by 64% in the first half of the current year. Iranian steel companies exported about USD 264.4 million worth of steel products during the period, while the figure for the same months last year was USD 161 million, reported IRNA. During the period, around 658,000 tonnes of steel products were exported. Export of round bar and iron beam indicated growths of 188% and 140% respectively during the period, the report added.

The main steel mills of the country are located in Isfahan and Khuzestan provinces. Major raw steel producers of the Islamic Republic include Mobarakeh Steel Mills, with approximately 47% of the market share, Khuzestan Steel Company with about 23%, Isfahan Foundry with about 20% and Iran National Steel Industries Group with approximately 10% of the market share.

(Sourced from Iran Daily)

Indian steel minister Mr Verma to visit Russia to attend NMDC Severstal MoU signing ceremony

Sunday, 06 Nov 2011

The Pioneer reported that Indian steel minister Mr Beni Prasad Verma is scheduled to embark on his trip to Russia from November 9 till November 12.

Mr Verma told The Pioneer that he would be going to Russia as scheduled on November 9.

The Minister will attend the MoU signing ceremony between State run iron ore miner NMDC and Russia's Severstal.

(sourced Dailypioneer)

Orissa tightens rules for iron ore sales

Sunday, 06 Nov 2011

Sponge iron units and other consuming industries dependent on supplies of iron ore from Orissa face uncertainty after a government order virtually froze movement of ore from mines in the state to other states.

The order by the Deputy Director Mines Joda Keonjhar district comes close on the heels of the detection of alleged irregularity in utilization of iron ore by Rashmi Metaliks and Rashmi Cement a few weeks ago.

The Orissa government order requires iron ore consuming units located outside the state to submit a plethora of documents confirming proper utilization of the mineral from 2007-08 to 2009-10. According to an Orissa government source, the verification of the entire procurement in last four years has to be complete first.

But then verification is not easy. The exercise has proved to be tardy. More than 100 firms that have submitted documents for verification over two weeks ago are yet to receive clearance. Another 100 or so, due to submit their documents shortly, keep their fingers crossed.

This is important to prevent repetition of Rashmi Metaliks and Rashmi Cement like situation wherein large quantities of iron ore meant for domestic consumption were sent to ports by road for exports, thus depriving various government departments of their legitimate revenue earnings.

(Sourced from BL)

PGCIL plans INR 5000 crore for transmission network in Gujarat

Sunday, 06 Nov 2011

State run Power Grid Corporation has set aside around INR 5,000 crore for setting up transmission network in Gujarat by October next year.

A company official said that PGCIL's network would connect Bhachau, Morbi, Lalpar and Halvad at Gujarat's Kutch district.

The official said that the company has already commissioned transmission system for two units of the Mundra Ultra Mega Power Project in Gujarat. These are part of the transmission system associated with Mundra UMPP, being implemented by Power Grid at an estimated cost of about INR 5,000 crore.

The 4,000 MW Mundra project, being developed by TATA Power, will be the first UMPP to start power generation in the country.

The line is ready to evacuate power from two units of Mundra UMPP (2X800 MW) in normal condition and more than 1,200 MW in the contingency.

The system commissioned consists of high capacity Mundra-Bachau-Ranchodpura 400 kV Double circuit line along with 630 MVA Bachau 400/220 kV sub-station.

These are part of the transmission system associated with Mundra UMPP, being implemented by Power Grid at an estimated cost of about INR 5,000 core.

About 770 circuit kilometres transmission line has been commissioned in challenging conditions like passing through tough terrains in creek area of Arabian Sea, excessive water logging due to heavy rains, etc.

(Sourced from PTI)

Indian iron ore prices firm vs falling international prices - JSPL

Sunday, 06 Nov 2011

In an interview with ET Now, Mr Sushil K Maroo group CFO of JSPL, gives his views on steel demand and iron ore prices.

ET Now - First a word on steel demand, one is getting a sense that global steel demand has got stagnated and that will hit Indian companies?

Mr Sushil Maroo - In fact, global steel demand has come off in the last two months time. Demand has gone down in China also and everywhere else because the world economy is really not doing very well. So, certainly the prices of raw material are also falling because of that, but unfortunately in India the prices of raw material are not falling and availability of iron ore is also in question. So steel prices are still very firm. But the demand in India for steel is not growing because of various reasons as the interest rate is very high and other industries are also getting affected adversely because of low demand of their products and higher interest rate, low liquidity. So, the steel prices in India are firm, still not fallen, but the demand is really not rising.

ET Now - Iron ore prices in India as well have risen recently but globally there has been considerable weakness give us your outlook on the same?

Mr Sushil Maroo - See the global iron ore prices have fallen something about 35% to 45% in last one month. But in India iron ore prices have not fallen commensurately in fact because many mines are closed, availability of iron ore has become very difficult now and many steel companies are having a lot of problems. The export of iron ore also has slowed down from India because they are not able to get the kind of prices they were getting in the past.

(sourced ET Now)

ABG in iron ore rights deal with Liontown

Sunday, 06 Nov 2011

African Barrick Gold has agreed an iron ore rights deal with Liontown Resources.

The agreement will allow Liontown to explore for iron ore deposits on certain exploration tenements held by ABG in Tanzania.

The agreement allows for Liontown to earn an interest of up to 70% of the iron ore rights on around 530 sq kms of land within the Masabi, Masabi Extension, Siga Hills and Siga Hills North exploration projects.

ABG will retain all rights to minerals discovered other than iron ore and by-products directly associated with iron ore mineralogy.

(sourced StockMarketWire)

Indian white coal gains popularity in Europe

Sunday, 06 Nov 2011

Commodity Online reported that the white Coal produced from agricultural waste in Rajasthan has gained popularity in European countries.

The white coal produces very low level of carbon which helps to protect the environment as result the demand for the commodity has been rising in Europe as it enables to earn Carbon Credit points.

The rising coal price has also raised the demand for the commodity from Europe.

The environmentalists have praised the production of white coal as it is eco friendly and uses the waste materials from agriculture which was earlier thrown away. The production of white coal is also providing returns to farmers.

In India, Rajasthan has become the major hub for white coal. Over 200 units in Ganganagar, Kota and Jaipur.are in process of producing white coal.

According to Mr VK Parikh, environmentalist, the people who are using bio fuels are getting back 25% of their fuel cost. The major companies in the region are engaging in this production. The future of these industries is bright and it will grow. It is beneficial for the environment as well.

(sourced from commodityonline)

African Minerals loads first Tonkolili iron ore shipment

Sunday, 06 Nov 2011

It is reported that shares in African Minerals rose after revealed that it had started loading the first iron ore shipment from its Tonkolili project. This is the first such shipment from Sierra Leone in more than 30 years.

The 40,000 tonne shipment will be delivered to Shandong Iron and Steel Group and constitutes the trial cargo to be tested prior to the closing of its USD 1.5 billion investment, which remains on track for the year end.

AML said that the shipment was the result of an integrated mine, rail and port infrastructure built by the firm within 14 months of receiving the mining lease and environmental impact assessment license.

Edenville has completed drilling at the Mkomolo and Namwele basins at the Rukwa coal field project in south western Tanzania. Edenville said eight holes were completed at Namwele for 934.30 meters and 2,585.10m in 22 holes at Mkomolo.

Samples results are being analyzed by international consultant Wardell Armstrong International for an initial resource estimate at Mkomolo by the year end.

Mr Simon Rollason chairman said that "The completion of core diamond drilling at the Mkomolo and Namwele basins should allow us to prove up an initial JORC compliant coal resource at the Rukwa coalfield in Tanzania. We confidently await the results of the analyzed samples from the laboratory and we will keep our shareholders up to date with the company's progress as and when we receive further news."

(sourced from Sierraexpressmedia)

Vale iron ore production update

Sunday, 06 Nov 2011

	Q3 '10	Q3 '11	Q2 '11	9M '10	9M '11
IRON ORE	79,873	85,032	77,459	219,479	231,529
Southeastern System	31,530	31,297	30,528	86,885	90,518
Itabira	10,621	10,919	10,499	28,668	30,499
Mariana	9,697	9,923	9,861	27,702	29,158
Minas Centrais	11,212	10,455	10,168	30,515	30,862
Midwestern System	1,088	1,642	1,417	2,940	3,973
Corumba	749	1,203	1,028	1,953	2,840
Urucum	339	439	389	987	1,133
Southern System	20,258	21,200	19,496	56,489	57,475
Minas Itabirito	8,275	7,917	7,691	22,581	22,785
Vargem Grande	5,938	6,168	5,784	16,938	16,410
Paraopebas	6,044	7,115	6,021	16,970	18,280
Northern System	26,997	30,894	26,019	73,164	79,563
Carajas	26,997	30,894	26,019	73,164	79,563

(In '000 metric tonne)