Minerals and Metals

Nava Bharat Signs Zambia Coal Deal

noreply@blogger.com (hamilton) — Mon, 21 Dec 2009 10:50:00 +0000

Shares in Nava Bharat Ventures surged on the BSE this morning, after the company's overseas unit Nava Bharat Singapore signed a pact with The Republic of Zambia for acquiring 65% stake in Maamba Collieries for a consideration of $26 million.

The company announced acquisition before trading hours today, 21 December 2009.

Meanwhile, the BSE Sensex was down 68.43 points, or 0.41%, to 16,651.40.

On BSE, 11,228 shares were traded in the counter as against an average daily volume of 18,365 shares in the past one quarter.

The stock hit a high of Rs 392.70 and a low of Rs 383.15 so far during the day. The stock had hit a 52-week high of Rs 442.90 on 25 August 2009 and a 52-week low of Rs 98.20 on 29 January 2009.

The mid-cap stock had underperformed the market over the past one month till 18 December 2009, falling 3.1% as compared to the Sensex's 1.64% fall. It had outperformed the market in the past one quarter, rising 3.85% as compared to the Sensex's decline of 0.13%.

The company's equity capital is Rs 15.19 crore. Face value per share is Rs 2.

The current price of Rs 392.30 discounts the company's Q2 September 2009 annualized EPS of Rs 63.22, by a PE multiple of 6.21.

The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued for inducting a private majority partner.

Nava Bharat Ventures' net profit rose 1.2% to Rs 120.03 crore on 39.5% fall in net sales to Rs 240.94 crore in Q2 September 2009 over Q2 September 2008.

Nava Bharat Ventures manufactures ferro alloys which are utilized by the steel industry. The company also generates & distributes power and manufactures sugar

Source: India Info-online

Bangladesh To Remove Bhutan Steel, Ferroalloy Tariffs

noreply@blogger.com (hamilton) — Mon, 21 Dec 2009 10:48:00 +0000

The Financial Express Bangladesh reports that the Bangladesh government is going to withdraw the entire import duty from 18 major exportable products from Bhutan to boost bilateral trade with the neighbouring country.

As per the report, the South Asian department of the foreign ministry has urged the NBR to take necessary steps to withdraw import duty from the import items following a commitment by Prime Minister Ms Sheikh Hasina during her recent visit to the country.

Mr Nasir Uddin Ahmed chairman of National Board of Revenue said “We will issue an order in this connection after getting directive from the finance minister.”

Presently, the NBR imposes a flat 15% customs duty on import of Bhutanese products.

The items include all kinds of mineral waters, boulders, dolomite, gypsum, limestone, calcium carbonate, ferrosilicon, billets, semi finished products of iron or non-alloy steel.

Source: Steel Guru

Chadormalo Increases Iron Ore Concentrate Production

noreply@blogger.com (hamilton) — Sun, 20 Dec 2009 14:03:00 +0000

Chadormalo iron ore concentrate production increased 9 percent during the period from the beginning of this year by the end of the 8th month of this year comparing to production plans.

According to the Public Relations of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 5,619,771 tons of iron ore concentrate has been produced by Chadormalo Mineral and Industrial Complex during the said period while the predicted weight was 5,147,000 tons.

674,081 tons of iron ore concentrate has been produced in the 8th month of this year by this complex which showed some 6 percent (636,000 tons) increase comparing to the production plans.

More over more than 930,000 tons of pellet and some 752,000 tons of granule iron ore have been produced in Chadormalo Mineral and Industrial Complex during the first 8 months of this year.

According to this report the produced pellet of the complex in the 8th month reached to more than 200,000 tons and the produced granule iron ore of the complex reached to some 96,000 tons.

Source: ME Steel

Ennore Coke Close To Acquiring Australian Coke Mine

noreply@blogger.com (hamilton) — Sun, 20 Dec 2009 14:00:00 +0000

The Financial Express has reported that Ennore Coke Limited is close to acquiring the Broughton coking coal mines in Australia, becoming the country's second met coke company after Gujarat NRE to have overseas coking coal assets.

Mr Ganesan Natarajan president & CEO of Ennore Coke said that the company is asked a price of USD 12 million for taking over 90% stake in Australia's Broughton coal mines having estimated reserves of 30 million tonne.

He added that "Although at one point of time we thought that the valuation would further drop to around USD 7 to USD 8 million, finally it has been valued at USD 15 million."

The process of stake acquisition is expected to be completed by July next year. Rio Tinto, the global mining giant, which was also in the race, finally backed out and paved Ennore's way for acquisition, he added.

Mr Natarajan said that the Haldia unit, which is currently expanding its capacity from 150,000 tonnes per annum to 300,000 tonnes per annum at an investment of INR 80 crore, would also require an additional 200,000 tonnes of coking coal above its present 600,000 tonnes requirement.

Source: Steel Guru/Financial Express

Turkish Ferroalloy Imports Fall In October

noreply@blogger.com (hamilton) — Sun, 20 Dec 2009 13:56:00 +0000

According to customs statistics compiled by the Turkish Statistical Institute in October 2009, Turkey imported 17,800 tonnes of ferroalloys decreasing its imports of the products in question by 44.2% as compared to September.

In October the country's ferromanganese imports declined by 84.38% reaching 939 tonnes, ferrosilicon imports totalled 4,046 tonnes decreasing by 44.33% while ferrosilicomanganese imports amounted to 11,712 tonnes down 34.77% all compared to September.

Source: Steel Guru

Montana Land Board To Vote On Coal Reserve

noreply@blogger.com (hamilton) — Sat, 19 Dec 2009 09:48:00 +0000

The Montana Land Board is to vote Monday on whether to put up for lease a half-billion-ton coal reserve near the Wyoming border — a politically charged decision for Gov. Brian Schweitzer and the four other Democrats who make up the panel.

Coal royalties and other revenues from a new mine would boost the state's cash-strapped coffers by hundreds of millions of dollars in coming decades. That means Democrats would be exposed to charges of economic obstructionism if they vote "no."

But a Land Board vote to move forward could spark a backlash from environmentalists who supported the Democrats in last year's election. Mining the state-owned reserve would lead to the release of an estimated 1 billion tons of greenhouse gases when the coal is burned.

In five years in office, Schweitzer has cultivated an image as a progressive Democrat keen on developing Montana's vast coal resources — the largest in the nation. He says it can be done in a way that balances economic development with climate change, but Monday's decision could put that to test.

Fourteen Republican state lawmakers sent a letter to Land Board members this week dismissing worries over global warming as rhetoric that could stifle progress.

On Friday, 22 Democratic lawmakers shot back with their own letter to the board, saying the GOP claims ignored reality.

After grappling with the issue for years, the board in November put off a decision for another month to seek public comment. Officials including Secretary of State Linda McCulloch, who sought the latest delay, said Friday that the time for a vote had come.

"There's going to be a vote," McCulloch said. "There's a lot of sides to this. Number one, we have to fund the schools. There are jobs, good-paying jobs associated with this. There's also issues about renewable resources and stewardship of the land."

Neither McCulloch nor other members would reveal Friday how they plan to vote.

Composed of the state's top five elected officials, the board manages state-owned real estate and is charged with maximizing revenue.

The state's coal tracts are intertwined with an estimated 731 million tons of the fuel Great Northern Properties leased last month to Arch Coal Inc. of St. Louis.

Combined, the state and private property contains more coal than the United States burns annually. The coal reserve is next to the Northern Cheyenne Indian Reservation, where support for mining has been mixed.

Schweitzer — a vocal proponent of coal development — said Friday that his support for leasing depends on whether the price offered for the coal is high enough.

Environmentalists who backed his 2008 re-election worry that calculus could ignore the costs of climate change and, more locally, the industrialization of the rural Otter Creek valley south of Ashland.

Backers of mining say the question before the Land Board is much narrower: Does leasing the coal make economic sense?

A decision to move forward on leasing could potentially end more than a decade of hand-wringing over the coal tracts.

Once owned by the federal government, the state's reserves were promised to Montana by the Clinton administration as part of a 1996 deal that pre-empted construction of a contentious gold mine next to Yellowstone National Park.

Under pressure from environmentalists, Clinton's interior secretary, Bruce Babbitt, later tried to back out of the deal. He cited "the potential for environmental disruption" if the coal were developed. The transfer finally took place in April 2002, under President George W. Bush.

Since Schweitzer took office in 2005, the state has moved steadily in sizing up the potential for Otter Creek — if not always quickly enough for development proponents.

The delay has allowed Schweitzer to promote his ambitious energy development agenda while largely steering clear of the growing drive by environmentalists to halt the mining and use of coal.

Even if the Land Board moves forward to seek lease bids, it would not seal the deal on Otter Creek.

The panel still would need to strike a lease agreement, and the chosen developer would need to sink an estimated $1 billion into a mine and a new railroad needed to move the fuel to power plants in the Midwest.

Source: AP

China Paying $107 Per Tonne For Iron Ore

noreply@blogger.com (hamilton) — Sat, 19 Dec 2009 09:46:00 +0000

Prices for the iron ore China is importing jumped this month to $107 per dry metric ton, the highest import price in a year, according to The Steel Index, which tracks the delivered price of 62% ferrous-content fines. If iron ore prices remain inflated in early 2010, the cost pressures could become a major driver of higher Asian steel prices next year-which, in turn, could influence global steel prices upward.

Worldwide steel production is creeping up from early 2009 lows as the global economy slowly comes back to life, writes analyst Gavin Wood at Nomura International, but the revival of such raw material supplies as iron ore may not respond quickly enough, particularly in the face of an insatiable China. "Chinese demand for raw materials is pushing prices higher and we think next year steel prices will have to move up as producers pass on the rising raw material costs," Wood says.

The Steel Index iron ore reference price has been erratic all year, falling to $59 last March, peaking in excess of $100 in August, falling back to $76 in September, and now climbing to $107. A Reuters news report says the current price is 30% above the contract prices of 2009.

In a new report, Steven Randall, managing director of The Steel Index, says the volatility and rising spot price "creates a challenging background" for the imminent iron ore benchmark price discussions between the Chinese steel mills and Australian and Brazilian miners for next year's deliveries. At current freight rates, the spot price is some 45%-50% higher than the fixed-contract price agreed between the Japanese steel mills and the miners in mid-2009. As has been reported, no agreement on a benchmark iron ore contract price was reached with the Chinese steel industry in 2009 although mills there have been buying on spot for several months.

Looking ahead, UBS Securities, JP Morgan Securities and Goldman Sachs JBWere have predicted a 20% rise in Asian iron ore costs in 2010, which is higher than previous forecasts. Macquarie Bank now is predicting a 30% increase.

Steel makers around the world are restarting blast furnaces shuttered as demand dived during the global economic slowdown. "This movement by steel makers is boosting ex-China demand for iron ore and causing the iron ore market to become tighter earlier than we expected," write JP Morgan analysts in a research note.

Source: Purchasing.com

China Iron Ore Inventories Up This Week

noreply@blogger.com (hamilton) — Fri, 18 Dec 2009 11:56:00 +0000

Iron ore inventories at China's major ports rose by 830,000 tonnes this week to end at 66.75 million tonnes, industry consultancy Mysteel said on Friday.

Stockpiles of ore originating from Brazil increased by 180,000 tonnes to 19.1 million tonnes, while Indian ore was up by 830,000 tonnes at 13.18 million tonnes.

Australian ore inventories fell by 480,000 tonnes to end at 21.95 million tonnes by the end of the week.

While domestic ore prices remained steady, the average price of imported iron ore increased 2.3 percent this week, according to Mysteel figures. Prices are 25.8 percent higher than December 2008.

On Thursday, Indian ore with 63.5 percent iron content was selling at 790-800 yuan at Shandong port, up almost 4 percent from a week ago, while Brazilian 65 percent ore cost 850-860 yuan, up 1 percent.

Traders said domestic steel mills had been replenishing stocks in preparation for an increase in prices in 2010.

In a note this week, Royal Bank of Scotland analysts said iron ore supplies would likely be stretched next year, largely as a consequence of growing Chinese demand.

They predicted that contract prices would likely rise by as much as 20 percent in 2010, revising their forecast up from the previous 10 percent.

Source: MySteel/Alibaba

Queensland Thermal Coal Project Moves Step Forward

noreply@blogger.com (hamilton) — Fri, 18 Dec 2009 11:54:00 +0000

A proposal for Australia's largest thermal coal project in Queensland's central west has taken a step forward.

Hancock Prospecting is proposing two mines at Alpha and Kevin's Corner in the Galilee Basin and a 500 kilometre rail line to port facilities.

The company's chairman, Gina Rinehart, has today met Premier Anna Bligh to discuss the plans.

The Government has declared the coal rail corridor an infrastructure facility of significance and confirmed it will be able to use Abbott Point.

Ms Bligh says that means Hancock can now move forward with a bankable feasibility study.

If it is approved, the projects will create the biggest thermal coal mine complex in Australia and employ thousands of workers.

Ms Rinehart says now the Government has provided certainty about rail and port infrastructure, a Hancock Coal head office will be established in Brisbane.

Source: ABC Australia

JFE Steel To Buy Stake In Queensland Coal Mine

noreply@blogger.com (hamilton) — Fri, 18 Dec 2009 11:52:00 +0000

JFE Steel said on Thursday it would spend more than $US550 million ($A610.64 million) to buy a stake in an Australian coal mine as Japan vies with fast-growing emerging nations for a steady supply of raw materials.

JFE Steel Corp announced it would acquire a 20 per cent interest in the Byerwen Coal project from QCoal Pty Ltd. The mine, in Queensland, is expected to start production in 2012.

The two companies also agreed to a long-term supply deal for JFE Steel to receive coal from the project.

JFE, Japan's second-largest steel maker, said its total investment would be Y50 billion ($A617.97 million), including spending related to the mine's facilities.

The group said it aimed to get the project operating "as soon as possible in order to secure its own stable supply of good-quality coking coal over the long term and help stabilise the world's coking coal market".

Japan's steel makers have been seeking stable sources of raw materials by buying stakes in mines as the country jostles with other regional economies such as China and India for commodity supplies.

Anglo-Australian mining giant Rio Tinto said Thursday it had secured its first-ever iron ore sale to India, calling it a "ground-breaking" development.

Source: Sydney Morning Herald

Alaska Sees Increase In Coal Exports

noreply@blogger.com (hamilton) — Thu, 17 Dec 2009 14:22:00 +0000

Alaska’s coal exports to the Pacific have jumped following a two-year slump, according to the state’s sole producer.

The company, Usibelli Coal Mine, is optimistic exports could stay strong despite international efforts to regulate fossil fuel use.

Usibelli’s coal exports, which normally account for about one-third of its production, almost tripled from 2007 to 2009, according to Steve Denton, a company vice president. Shipments to Asia and Chile should be near 817,000 tons this year, more than the previous two years combined, Denton estimated Wednesday night during a panel discussion on Alaska’s coal industry.

The presentation drew roughly 50 people to the Noel Wien Library. Some questioned Alaska coal’s prospects given domestic and international efforts to reduce carbon emissions and state and federal subsidies for alternative energy. Coal still stands as one of the cheapest sources of power around, and Denton indicated the company expects international coal markets to hold strong in the long run.

The United States relies heavily on coal power, less so even than China and developing countries, and Alaska sits as a major potential supplier. The state’s estimated 5 trillion tons of undeveloped coal reserves could account for more than 10 percent of the world’s supply.

“It’s pretty hard to see the end of coal as a resource,” Denton said.

The discussion’s question-and-answer segment resembled broader debate about power production’s environmental and economic impacts. Usibelli’s export figures come as nations seek cuts to greenhouse gas emissions, pollution blamed in part on coal-fed power in developing countries. Interior Alaska still relies partly on coal power, and Fairbanks’ electric utility plans soon to restart a 50-megawatt experimental coal plant near Usibelli’s Healy mine.

But the state also is seeking more renewable power, and Gov. Sean Parnell on Monday proposed depositing $25 million in a fund for renewable energy grants. State lawmakers are separately weighing a proposed “emerging energy technology fund.”

Denton said various factors could make Alaska coal attractive to international buyers. Shipping costs across the Pacific Ocean fell last year, he said, making it cheaper to sell coal overseas and increasing profit at home.

“When price goes down on shipping, it’s generally good for us,” Denton said.

Rajive Ganguli, a mining engineer at the University of Alaska Fairbanks, said much of Alaska’s coal reserves hold relatively low sulfur and mercury levels, making it environmentally cleaner than coal from many regions.

Usibelli produces roughly 1.5 million tons of coal per year. The bulk goes either to cogeneration power plants, which produce both electricity and feed underground district heating networks, or is exported.

Wednesday’s discussion was part of a monthly lecture series sponsored by the Alaska Center for Energy and Power.

Source: Fairbanks Daily News

Baosteel - Iron Ore Prices Unlikely To Rise Next Year

noreply@blogger.com (hamilton) — Thu, 17 Dec 2009 10:10:00 +0000

Baosteel Group Corporation (Baosteel) raised January 2010 steel prices December 10, 2009. After the price adjustment, the main product prices of Baosteel have basically returned to their high level in 2009. The action was followed by Wuhan Iron and Steel (Group) Corp. (WISCO), Anshan Iron and Steel Group and other enterprises increasing their steel prices.

Ma Guoqiang, general manager of Baosteel, said December 15, 2009 that next year in terms of steel demand and the overall price, the situation will be greatly improved compared to this year, but the overcapacity issue will remain. He also said that the world's major steel enterprises' financial situation is still not optimistic this year, and this means that the iron ore price is unlikely to rise next year.

Next year's domestic production capacity may surpass 600 million tons

Ma expected that thanks to the 4 trillion yuan economic stimulus plan, as well as investment demand in real estate and infrastructure, this year the domestic steel production capacity could reached 5.7 million tons. Judging by the just-concluded Central Economic Work Conference, next year proactive fiscal policy and moderate loose monetary policy will be continued. The national crude steel output in 2010 could reach more than 600 million tons.

He also said next year China's economic growth will rely more on domestic demand and growth in investment will be less than this year. Based on this premise, combined with reduction in vehicle purchasing tax and the possibility of continuing the home appliances to the countryside policy, the outlook for steel demand is optimistic.

Furthermore, as urbanization continues to advance, the demand for steel will be diversified, which will generate a new round of domestic steel demand. Relatively speaking, with the cooling down in investment in infrastructure, construction steel demand growth will slow in 2010.

Ma also said the situation of overcapacity will be more prominent in the next year. In his view, eliminating backward production capacity will need to rely on economic measures, but the key is to strictly enforce environmental regulations, making those iron and steel enterprises with high pollution and high energy consumption lose their cost advantage.

Ma Guoqiang said at Baosteel there will be no increase in production capacity next year, and they will continue adjusting the product structure in accordance with national requirements.

"Due to the constraints of anti-dumping by foreign countries, while China has large production capacity, the price of seamless steel pipe products in 2010 is not optimistic."

"Baosteel next year will insist on differentiation strategies and produce the relative cost-competitive products that other domestic steel mills can not produce," Ma said.

Ma said the iron ore market is a global market, so it directly relates to global supply and demand. From a global perspective, the financial situation of some iron and steel enterprises in 2009 is very difficult, and a considerable number of enterprises suffered losses or meager profits, insufficient to support the price rise of iron ore next year.

However, according to a report from ratings agency the Fitch Ratings Corporates Group, China's steel output recovery is pushing up the prices of raw materials, and the agency expects prices of raw materials to increase 15 percent -20 percent in 2010 than in 2009. Since the end of 2008, downstream operating costs of the steel company which are self-sufficiency in raw materials may have been reduced. These companies will make profits when capacity utilization rate is more than 75 percent.

Source: People's Daily

Vale Offers China Freight Discounts

noreply@blogger.com (hamilton) — Thu, 17 Dec 2009 10:05:00 +0000

BRAZILIAN miner Vale has offered freight discounts for iron ore shipments to Chinese steel mills, according to an executive with a Chinese steel trading house and consultancy and a China Daily report.

Vale has offered to fix freight charges for Chinese mills at $US25 ($27.87) a tonne for a two-year contract, or $US24/tonne for a four-year contract, said the executive, who has close ties to both the mining and steelmaking industries.

If the offer has actually been made, Vale is seeking to eliminate a key advantage enjoyed by its Anglo-Australian rivals Rio Tinto and BHP Billiton that has given rise in the past to differing price settlements for Brazilian and Australian benchmark iron ore. Chinese buyers paid more for Australian ore in the 2008 contract because Australian miners argued that their lower shipping costs, compared with Brazilian freight, justified a premium for Australian ore. The executive said he didn't know whether any Chinese mills had signed, but the China Daily report that "some Chinese companies are believed to have signed".

Source: The Australian

Bhushan Steel To Raise Prices In Jan

noreply@blogger.com (hamilton) — Thu, 17 Dec 2009 10:04:00 +0000

Domestic steel firm Bhushan Steel on Wednesday said it will increase prices of its products by up to Rs 1,500 a tonne next month to cash in on the uptick in demand.

"There is going to be a price increase of our flat and long steel products from January onwards may be in the range of Rs 1,000-1,500 a tonne. ...From January, the demand will definitely pick up," Bhushan Steel Managing Director Neeraj Singal told reporters here.

Flat steel products are primarily used by the white goods and auto industry while the long products are used in the construction industry.

The firm had lowered prices of its products a few months back along with its peers in the industry amid threats of cheap imports. The price range of the cut could not be immediately ascertained.

"The prices had gone to unexpectedly low levels in the last two-three months so it has to come to a realistic level again. From January the demand will definitely pick up," Singal said.

The country's largest steel producer SAIL is also planning to increase steel prices in January. The move is expected to be followed by other steel producers as well.

Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of over capacity in Chinese steel mills and import threat.

Source: Economic Times

Iron Ore Holdings In Deal With Rio Tinto

noreply@blogger.com (hamilton) — Thu, 17 Dec 2009 10:02:00 +0000

KERRY Stokes' 52 per cent-owned iron ore junior, Iron Ore Holdings, is set to come out of a trading halt after reaching an agreement giving Rio Tinto six months to negotiate the acquisition of IOH's flagship Iron Valley iron ore deposit in the Pilbara.

IOH is also expected to announce it has secured an iron ore sales agreement with Rio covering its more advanced but much smaller Phil's Creek project, helping it become a 1.5 million tonne-a-year producer next year.

The expected agreements follow from the November 24 announcement that the pair were talking about the possible acquisition by Rio of the 190 million-tonne Iron Valley deposit, one that Rio is keen to complete to demonstrate its credentials as a ''friend'' of Pilbara iron ore juniors.

Rio's resistance, and that of the other big Pilbara iron ore operator, BHP Billiton, to junior companies accessing their Pilbara rail and port infrastructure to develop stranded iron ore deposits has come under attack..

Source: Sydney Morning Herald

Vale Signs Independent Iron Ore Contracts With Chinese Steel Mills

noreply@blogger.com (hamilton) — Wed, 16 Dec 2009 08:42:00 +0000

Brazilian mining company Vale SA has signed independent ore contracts with Chinese steel mills for fixed freight charges to further expand its presence in the mainland, ahead of next year's benchmark iron ore pricing negotiations.

Some Chinese companies are believed to have signed three to four year price contracts with Vale for fixed freight charges which are 20 to 30 percent lower than normal rates, said an executive with a State-owned steelmaker.

Vale is also believed to be bringing forward a series of plans like output expansion, a new distribution center and the construction of 16 large ore carriers to reduce transportation costs between China and Brazil. The executive, however, refused to disclose any further details on grounds of confidentiality.

Vale's distribution center for the 400,000-ton ships may be established at Qingdao. The port has already started work on four 400,000-ton terminals, the first of which is likely to be completed by the end of next year, according to Chinese newspaper National Business Daily.

Unlike BHP and Rio, which ship ore from Australia, Vale needs to transport iron ore from Brazil, resulting in much higher freight costs.

Freight costs from Brazil to China were around $35 per ton yesterday, while the spot price of Brazilian iron ore was 850-860 yuan ($125) per ton.

To help reduce transportation costs, Vale plans to build the 16 huge carriers that are expected to trim costs by 30 percent compared to other small ships.

"The move underscores the interdependence between Vale and China," said Yu Liangui, senior analyst from consultancy firm Mysteel. "As a long-term strategy, Vale needs to stabilize its exports by reducing transportation costs to grab more market share in China from its rivals Rio Tinto and BHP Billiton."

Jiangsu Rongsheng Heavy Industries Group, a shipbuilder based in eastern China, will build 12 of the carriers for Vale by the end of 2010 or the beginning of 2011, local media reported.

Macquarie Group Ltd and JPMorgan Chase & Co have raised their forecast for annual iron ore contract prices after a surge in demand from China.

Australian benchmark iron ore prices may rise 30 percent, Macquarie analysts led by London-based Jim Lennon said yesterday in a report. That compares with their previous estimate for a 10 percent gain, according to media reports.

China increased iron ore imports by 12 percent last month to cater to the rising demand from makers of cars and appliances, it said.

Iron-ore demand from the United States and European steelmakers will also increase next year, the Brazilian company said recently.

Source: China Daily

Walter Energy Starts Production

noreply@blogger.com (hamilton) — Wed, 16 Dec 2009 08:40:00 +0000

Coal producer Walter Energy said Tuesday it has started production at one of its mines and expects to produce two million tons next year.

The new production comes from a $175 million expansion that will increase Walter Energy's rated capacity for premium coking coal to approximately 9.5 million tons in 2012.

Walter Energy, which is based in Tampa, Fla., produces and exports coal for the global steel industry. Company stock increased $1.30, or 1.8 percent, to $74.78 a share in Tuesday trading.

Source: Business Week

India Has Sufficient Iron Ore Reserves 'For 150 To 200 Years'

noreply@blogger.com (hamilton) — Wed, 16 Dec 2009 08:36:00 +0000

Indian Minister of Mines and Minister of Development of the North Eastern Region, Shri B.K. Handique, stated in a written reply in the Indian Council of States today that India has ample resources of iron ore, which can suitably cater to future requirements. India's resources of iron ore are dynamic in nature and are bound to increase with further exploration, he added.

As reported by the Press Information Bureau of the Indian government, the minister said that the total iron ore reserves in the country amount to 7.06 billion metric tons and that the total resources of iron ore were estimated at 25.25 billion metric tons as on April 2005.

According to the same report, the level of steel production and the grade of iron ore, taken for purposes of calculating the resources, are important parameters for determining how many years the iron ore deposits will last. The estimated figures may be from 150 to over 200 years depending on the assumptions made.

Source: Steel Orbis

RTI Mothballs Mississippi Titanium Sponge Plans

noreply@blogger.com (hamilton) — Tue, 15 Dec 2009 10:21:00 +0000

RTI International Metals Inc. said it has indefinitely idled plans to build a $300 million titanium sponge plant in Hamilton, Miss. As a result, RTI will incur asset impairment and related charges in the range of $65 million to $75 million, the company said.

In addition, RTI also has entered into two additional long-term titanium sponge-supply agreements with Toho Titanium Co., Ltd. and OSAKA Titanium technologies Co., Ltd., both of Japan.

Dawne S. Hickton, vice chairman, chief executive officer and president, said that “taken together with our existing long-term agreement with OTC, which runs through 2016, these contracts, which commence in 2012 and 2013, will provide to RTI a cost-effective source of titanium sponge from proven suppliers through 2021 with volume flexibility that we believe will adequately support our long-term titanium supply needs.”

With headquarters in Pitts-burgh, RTI has a plant in Weathersfield Township.

Source: Vindy

Drilling May Lead To Eureka Mines Re-Opening

noreply@blogger.com (hamilton) — Tue, 15 Dec 2009 10:19:00 +0000

A major mining company has plans to re-open mining in about a year in what is described as the richest silver, leaf and zinc deposit in the United States.

Chief Consolidated Mining Co. is drilling core samples in the extension of the old Kennecott Bergin Mine and the Trixie Mine for gold, silver and copper, "to make sure the deposits are there," chairman and chief executive officer Gordon Blankstein said.

Chief owns about 16,000 acres of land, which includes part of Eureka and south and west of the historic mining town on both sides of U.S. 6. Chief is one of the largest landholders in Utah. The company is refurbishing an old mill as part of the return to mining there, Blankstein said. The mill was rebuilt about nine years ago.

"The Bergin is extremely rich," Blankstein said.

Over the years, Kennecott Resources, Sunshine Mining Co. and Chief have drilled more than 100 exploration holes in the district. Current crews are confirming the findings made then. They finished drilling hole No. 1 on Nov. 21 at a depth of 1,721 feet. Samples were sent for assay. A second hole went to 1,700 feet. Crews are also working on a third hole.

In the early years, mining would stop when the miners hit water. Today's miners have better ways of pumping and treating the water to continue mining. It has been studied as a source for potable water for the developing west side of Utah Lake, Blankstein said.

However, the Trixie mine doesn't have water issues, he said.

The company also plans to update a 2001 feasibility study before beginning mining operations in the East Tintic Mining District. Historically, the district has yielded 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 2.2 billion pounds of lead and 1 billion pounds of zinc, Blankstein said.

Andover Ventures of Vancouver, British Columbia, acquired 65 percent of Chief in 2008. Chief has been mining in the district sporadically since 1876.

"If we open a mine there, we will be creating jobs," Blankstein said. "There will be jobs created in the mill and in the underground mines."

Two drilling crews are working there now.

Several years ago, the Environmental Protection Agency mandated environmental cleanup in Eureka from lead residue left from the old days of mining. That work delayed Chief's mining pursuits but is nearing completion, he said.

Source: Deseret News

NTPC Coal Worries Unlikely To End Soon

noreply@blogger.com (hamilton) — Tue, 15 Dec 2009 10:10:00 +0000

Indian state-owned power producer NTPC’s woes over shortages of coal may not end soon. Though the company is importing 12.5 million tonnes of coal
over the next 12 months, going by the power utility’s requirement, this, too, is likely to fall short and impact generation capability. Also, uncertainty over an increase in coal supplies, from its largest supplier Coal India, could likely compound to the utility’s woes, say people familiar with the development.

NTPC, which has an installed capacity of 30,644 mw, is planning to add 3,300 mw of power in 2009-10 alone. While its current annual requirement of coal totals 150 million tonnes, if its proposed projects are added, the coal requirement would increase by at least 125 million tonnes. NTPC declined to comment on the story.

The state-owned utility is facing an acute shortage of coal as procedural and infrastructural bottlenecks have delayed its captive coal mining plans, while an increased demand globally has inflated the cost of acquisition of coal mines overseas.

NTPC has commissioned a 500-mw unit at Kahalgaon in June 2009 and in the current fiscal, it is expected to commission the 1,320-mw Sipat unit, 500 mw at Korba and 980 mw at Dadri. “By 2012, NTPC’s coal needs will shoot up by at least 125 mt a year,” said a company executive.

Of its annual requirement of 150 million tonnes, Coal India supplies 114.7 million tonnes every year. But the utility isn’t certain about increased supplies from CIL. “In a situation of general shortage, it may not be appropriate to supply coal to any consumer beyond 100% (of its requirement), even if the consumer is NTPC,” CIL chairman Partha Bhattacharyya told ET.

Of the installed capacity, 24,395 mw is generated from NTPC’s coal-fired plants, making coal the most critical fuel for its growth. Lack of coal supply is already costing the company. Though NTPC recorded a 11.6% revenue growth in the quarter ended September 2010, on a quarter-on-quarter basis, its revenue fell 10.2%, due to generation losses at some of its plants, including Farakka and Kahalgaon.

The gross generation for the September quarter was up 7% to 50.4 billion units, but dropped almost 10% sequentially. The Farakka unit requires 35,000 tonnes of coal daily, but gets only about 7,000 tonnes, due to poor coal linkage from the Lalmatia mines in Jharkhand. “The unit runs at an average plant load factor of 67% which is much below NTPC’s average PLF of 87.4%,” said the source. A plant load factor in a power generation utility is a measure of its capacity utilisation.

The Kahalgaon unit also suffers from lack of coal supply. According to a person close to the development, it runs at a PLF of 61.5% on an average.

However, it’s not just the lack of coal that is affecting NTPC’s generation capacity; the quality of coal is equally responsible. “The coal that comes from captive mines are very poor (of ‘F’ and ‘G’ grade), which affects the plants’ performance and also causes boiler tube failure frequently,” said the source.

Coal India chairman, Mr Bhattacharyya, agrees. “Quality of coal in India is intrinsically poor. The only solution lies in setting up large number of washeries for supplying washed coal,” he added. Although, CIL expects washing of coal to significantly improve quality, it may take time.

Also, NTPC’s plans to develop the five mining blocks allotted to it are lagging behind schedule. “Of the five, production from Pakri-Barwadih mine in Jharkhand may start this year, though it was supposed to begin in 2007,” added the NTPC executive.

Source: Economic Times

SAIL Looking To Raise Steel Prices In Jan

noreply@blogger.com (hamilton) — Mon, 14 Dec 2009 11:43:00 +0000

After cutting steel prices in the past two months, state-run Steel Authority of India Limited (SAIL) today said it is looking to hike the rates next month following a recovery in demand.

"We may increase steel prices in January as market is improving," Steel Authority of India Limited chairman S K Roongta told PTI.

He, however, did not give any price range of the proposed hike.

The steel maker had reduced prices of its flat steel products by up to Rs 2,000 a tonne in the past two months, mainly on falling international demand.

Flat steel products are primarily used by the white goods and auto industry. SAIL had not altered the prices of its long steel products utilised by construction companies.

The firm had reduced prices of flat steel products by up to Rs 500 per tonne in the first week of this month after cutting the rates by up to Rs 1,500 in the last month.

The price structure of the company generally acts as a benchmark for the domestic steel companies. SAIL offers its products in the range of Rs 29,000-40,000 a tonne.

Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of overcapacity in Chinese steel mills.

Import of cheap steel products had been pushing pressure on the domestic steel players to maintain a low price line.

Source: Business Standard

Iran Copper Exports Up 60 Per Cent

noreply@blogger.com (hamilton) — Mon, 14 Dec 2009 11:40:00 +0000

The National Iranian Copper Industries Company (NICICO) announced that in the first eight months period of the Iranian calendar year (ending November 21) exports of copper from Iran reached 315,706 tons.

The Mehr News Agency reported that this amount of copper was sold for $688.2 million.

In terms of weight, statistics show a 60 percent increase compared to the same period the year before, and in value it is 15 percent more.

Copper excavation in this period by NICICO reached 62 million tons which shows one percent increase in comparison to the previous year.

Global copper prices have had an impressive rally in 2009, benefitting from a rebound in the world economy and strong growth in China, according to dailyfutures.com.

On November 23, 2009, the International Copper Study Group’s (ICSG) preliminary data showed that world copper production fell short of refined usage by 32,000 tons in the first eight months of 2009, compared to a deficit of 117,000 tons the previous year.

So far in 2009, the world refined production is down 1 percent, while refined usage is down 2 percent.

In 2008, the world refined production exceeded consumption by 225,000 tons.

On October 8, 2009, the ICSG predicted that copper will show a world production surplus of 368,000 tons in 2009 and 539,000 tons in 2010. That is up from their April estimate of a 345,000 ton surplus in 2009 and a 400,000 ton surplus in 2010

Source: Tehran Times

Bangladesh To Import LNG, Coal To Run Power Plants

noreply@blogger.com (hamilton) — Mon, 14 Dec 2009 11:37:00 +0000

The Bangladeshi Prime Minister's Adviser for Power, Energy and Mineral Resources Dr Tawfiq-e-Elahi Bir Bikram yesterday said that the government was contemplating to import liquefied natural gas (LNG) and coal to install four coal based power plants and five mega gas-fired power plants to reduce electricity crisis in the country.

He told this to reporters at the Zia International Airport prior to departure to UK for participating in a road show in England for foreign direct investment (FDI) in power sector. Nine officials accompanied him to attend the two day long London road show on December 15 to 16.

We face a shortfall of 500MW to 600 MW of electricity everyday due to gas crisis, the adviser said.

"Due to gas crisis, the government is planning to import LNG for electricity generation," he said, adding, "To establish four coal-fired power plants having capacity of 400MW each, the government has also planned to import coal outside the country.

The government has planned to install three combined cycle power plants having capacity of 1125MW, two peaking power plants of 100MW each, 2000MW to 2600MW capacity of imported coal based power plants and renewable energy based power plant having capacity of 110MW, Power Division Secretary Abul Kalam Azad said.

Energy Division Secretary Mohammed Mohsin said that Bangladesh has nine trillion cubic feet of gas proven reserve so far. Our daily demand is about 2,300 mmcfd (million cubic feet) per day.

The government is planning to set up one LNG terminal having capacity to preserve 3.5 million tons LNG.

Executive Chairman of the Board of Investment S A Samad said Bangladesh offers incentives for foreign direct investment.

"We will showcase our better investment climate through the road show in Bangladesh power sector," he said.

Some 80 interested investors, including 25 expatriate Bangladeshis, have registered online to take part in the road show.

The Singapore road show will begin on January 26 next year while the New York road show will start on January 28.

The government will arrange three separate road shows outside the country for power sector development at an estimated cost of Tk 2.16 crore.

The 9-member delegation of London road show include Power Secretary Abul Kalam Azad, Chairmen of the Board of Investment Dr SA Samad, Petrobangla Chairman Prof Hossain Monsoor, Power Development Board Chairman ASM Alamgir Kabir, and Bangladesh Petroleum Corporation, Energy Regulatory Commission Chairman Syed Yusuf Hossain, Deputy governor of Bangladesh Bank, PDB member power generation and PDB member for distribution.

In New York road show, the Board of Investment will invite 75 foreign and local investors while the number of invitees in Singapore will be 60 persons, sources said.

Board of Investment (BoI) of Bangladesh has already invited chambers' leaders of USA, UK, China, Malaysia, Korea, Russia and some others countries, sources said.

Source: The New Nation

Billion-Tonne Iron Ore Deposit Found In Hebei

noreply@blogger.com (hamilton) — Sun, 13 Dec 2009 12:14:00 +0000

An 1-billion-tonne iron ore deposit was found in northern Hebei Province, official said Saturday.

The 6-km long deposit is 41.43 to 108.95 meters thick on average and lies 100 to 600 meters deep underground, said Zhang Shaolian, head of Hebei Provincial Bureau of Land and Resources.

The deposit, in Hebei's Luannan County, was the largest ever found in China since the 1980s, Zhang said.

In addition to the proved 1.04-billion-tonne iron ore, the deposit has an estimated unproved reserve of 500 million tonnes, Zhang added.

The deposit is shallow and comparatively easy for mining, he said.

The No.1 Geological Exploration Institute of China Metallurgical Geology Bureau, who had been prospecting the area since February 2008, issued a report with details of the deposit including its reserves, Zhang said.

The report was reviewed and approved on Aug. 12 jointly by central and provincial land and resources reserve evaluation authorities, he added.

Source: China.org.cn