| The TEX Report Topics < Iron Ore > | |
| HOME >> Topics List >> September, 2008 >> 30 (Tue) |
| Major Events In Sep 08 Over Ferrous Raw Materials (1) |
|
Sep 2: <Two international investment banks shortlisted in Mauritanian project> Australian Sphere Investments Limited, together with its Mauritanian joint venture partner Société Nationale Industrielle et Minière (SNIM) announced that two international investment banks have been shortlisted to conduct a tender process to secure a new strategic partner for the Guelb el Aouj Iron Ore Direct Reduction (DR) pellet project in Mauritania. Following final evaluation of the two shortlisted candidates and negotiation of terms, it is expected that a mandate will be signed with the successful bank in September 2008. Sep 3: <Hebei Iron & Steel Group accelerates group-level consolidations> Following the consolidation in June 2008 of Tanggang Group and Hangang Group into Hebei Iron & Steel Group, a series of consolidation and restructure on the group level are under way, focusing on export and import work, as well as mining resources, of the subsidiaries of the Hebei Iron & Steel Group. The Group intends to further consolidate and audit investment plans, capital management and development plans, etc., as well as to centralize unified management of legal and financial work. Having surpassed Baosteel Group in crude steel production capacity, Hebei Iron & Steel Group is likely to have a stronger voice in the international markets. <Nippon Steel, POSCO JV (PNR) holds ground-breaking ceremony for RHF plant> Nippon Steel Corp (NSC), together with South Korean steel company POSCO held August 29 a ground-breaking ceremony at POSCO's Pohang Works for the construction of joint venture plants to manufacture and supply DRI while carrying out dry ferrous dust recycling operation. The joint venture ("POSCO-NIPPON STEEL RHF Joint Venture Co. Ltd. (PNR)" aims to strengthen and amplify the strategic alliance between both companies. Plant operations are scheduled to commence in September and December 2008 at POSCO's Pohang and Gwangyang Works, respectively. Sep 4: <Cape Lambert to take part in iron ore development in Sierra Leone> Australian Cape Lambert Iron Ore Ltd announced September 2 that it signed a conditional agreement on September 1 to make a 30% investment in Marampa Iron Ore Limited, a wholly owned subsidiary of African Minerals Limited, and owner of the Marampa iron ore project located in Sierra Leone in a cash/scrip deal valued at more than US$45 million. The proposed investment in Marampa comes after more than eight months of due diligence by the Company, including several site visits by senior technical executives and former Chairman, Ian Burston. Under the terms of the binding agreement, Cape Lambert will issue 44 million shares in the Company and invest US$25 million in the Marampa Project to fund a definitive feasibility study. The definitive feasibility study will be funded from existing cash reserves, and the 44 million Cape Lambert shares will be issued pursuant to the Company's 15% threshold under the ASX listing rules. <China's Baogang aims at 60% raw materials self-supply ratio> Baotou Iron and Steel (Group) Company ("Baogang") operating in Inner Mongolia Autonomous Region is devoting itself to development and exploitation of iron ore resources with a view to raise largely its self-supply ratio. Imported iron ore prices have increased to five-fold as a result of six-year consecutive rises, which is causing heavy burdens to steel mills in the country. Baogang is, in accordance with the strategic guideline of the local government, intending to lower the dependency on out-sourced resources, and to boost the capacity to absorb soaring raw materials costs. Baogang aims at a 60% self-supply ratio of raw materials by making effective use of resources in the region. Sep 8: <IOC to expand concentrate capacity to 26 Mt/a> Rio Tinto announced September 4 that it continues to advance its three-phased strategy that would see the annual concentrate production of Iron Ore Company of Canada (IOC) expand by 50% to 26 Mt by 2011. Sep 9: <Successive incidents occur in iron ore operations in Western Australia> Iron ore operations in Western Australia have experienced successive incidents, driven to temporary suspension partially. Accidents occurred at the operational sites of two major iron ore suppliers -- BHP Billiton and Rio Tinto -- within a period of two weeks; from August 25 to September 4, involving fatalities. Concerns built up about possible adverse impacts on iron ore shipments. <China to form intensified steel groups with strong speaking power> With the six-year consecutive price rise of iron ore in the background, the Government of China is vigorously pushing forward with restructure and consolidation of steel companies in the country. In March this year, at the two nation-level conferences including All China Assembly of People's Representatives, several people concerned of the steel industry gave a warning; "The significant rise in iron ore prices has provided a presage that a high-cost era is just arriving at steel companies, and a timing to accelerate consolidation of the industry is approaching step by step." The government subsequently caused establishment of Shandong Iron and Steel Group in March and Hebei Iron and Steel Group in June this year, granting approvals for the construction of the 10 Mt/a Zhanjiang Steelworks and the 10-Mt/a Guangxi Fangcheng Port Steelworks, to be constructed by Guangdong Iron and Steel Group and Wuliu Company of Wugang Group, respectively. The government intends, among other things, to have steel groups be concentrated so that they may have "one-voiced, strong speaking power" that should be effective versus iron ore suppliers in progress of oligopoly. Sep 10: <Shanghai Pudong Steel to introduce No. 2 COREX furnace> It was learned that Baosteel has recently completed earth work for No. 2 COREX furnace (designed ironmaking capacity: 1.5 Mt/a) as part of the Luojing II project of Shanghai Pudong Iron and Steel, a Baosteel Group company. Steel structure manufacturing and installation work will follow this event. Shanghai Pudong Iron and Steel has been advancing introduction of the COREX furnace in Luojing, where this Company's production facilities have been transferred for reasons of the Shanghai World Fair 2010. Preceding No. 1 COREX furnace (1.5 Mt/a) was put into operation in November 2007. Steelmaking facilities, continuous casting machine, and steel plate rolling mill are also in operation in Luojing. |
| last modified : Fri 03 Oct, 2008 [14:39] |
