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| HOME >> Topics List >> December, 2008 >> 26 (Fri) |
| Major Events In Dec 08 Over Ferrous Raw Materials (2) |
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Dec. 10: <Angang Group sets up strategic alliance with China Shipping Group> China's Anshan Iron and Steel Group Corporation (Angang) announced Dec. 8 that it has entered into a Strategic Cooperation Framework Agreement with China Shipping Group. Zhang Xiaogang, President of Angang Group and Li Shaode, President of China Shipping Group signed the Agreement on Dec. 7 at Diaoyutai State Guesthouse in Beijing. Both parties have been maintaining a cooperative relationship through the transportation of tens of thousands TEU's of containers each year. <Vale stops operation of two more pellet plants> Brazilian resources company Vale announced Dec. 8 that it has stopped the operations of two of its directly managed pellet plants located at the port of Tubarão in the sate of Espírito Santo, Brazil. The two plants have a total production capacity of 7.3 Mt/a. The decision to curtail pellet production is accounted for by the unprecedented contraction of the global demand for iron ore and pellets. The stoppage of the plants follows the shutdown of two other Vale's pellet plants at the port of Tubarão since Nov. 5, 2008. So four pellet plants have been suspended at Vale. Samarco Mineração, which is a joint venture company with BHP Billiton operating in Ponta do Ubu, has also idled put two of its three pellet plants until mid January 2009. The plants being suspended involve an overall total capacity of 29.3 Mt/a. Dec. 11: <Rio Tinto to reduce capital expenditure, global headcount> Rio Tinto announced Dec. 10 a detailed package of measures which comprise reduction of capital expenditure, operating costs and headcount, and holding of 2008 dividend unchanged. The Group's net debt has reduced by $3.2 billion in the period from June 30 to Oct. 31 2008 to $38.9 billion. The Group is committed to reducing further net debt by $10 billion by the end of 2009. Key initiatives and commitments to implement the objectives have been announced by the Group as follows: (1) Reduction of net capital expenditure guidance for 2009 from over $9 billion to $4 billion, while retaining future growth options, (2 Capital expenditure to be reduced to sustaining levels in 2010, absent an improvement in expected commodity market conditions, (3) Commitment to reduce controllable operating costs by at least $2.5 billion per annum in 2010, -- Reduction in global headcount of 14,000 roles (8,500 contractor and 5,500 employee roles), (4) 2008 dividend to be held at 2007 level of US$136 cents, and (5) Expanded scope of assets targeted for divestment including significant assets not previously highlighted for sale. Dec. 12: <SeverStal to become major stakeholder in Western African iron ore deposit> Russian leading metals and mining company OAO SeverStal announced Dec. 10 that its SeverStal Resources mining division has closed the transaction to purchase up to a 61.5% stake in African Iron Ore Group Ltd ("AIOG") which owns, through subsidiaries, the exploration rights for an iron ore deposit in the Putu Range area, Liberia, Western Africa. <China's iron ore imports in Nov 08 down 8.3% to 32.52 Mt> According to China's Customs Statistics for Nov. 2008 announced by the country's Customs General Administration on Dec. 10, iron ore imports into the country during the period were 32.52 (Mt, down 2.94 Mt or 8.3% from the previous corresponding month. Derived eleven month imports to November, however, reached a new record level of 409.13 Mt, increasing 17.3% from the same period last year. Full 2008 imports are likely to reach around 445 Mt. Dec. 15: <Guinean Gov urges Rio Tinto to give up half of Simandou Concession> Rio Tinto announced Dec. 11 that it has received correspondence from the Guinean Minister of Mines which appears to indicate that the Council of Ministers has instructed the Ministry of Mines and Geology to effect a compulsory relinquishment of the northern half of the Simandou Mining Concession whilst confirming Rio Tinto's entitlement to the southern half of that Concession. Dec. 16: <Yue Da Mining forges strategic alliance with Kunming Iron & Steel> Hong Kong based Yue Da Mining Holdings Limited announced Dec. 12 that it has entered into a strategic alliance agreement with Kunming Iron and Steel Company, a subsidiary of Wuhan Iron & Steel (Group) Corporation. Yue Da has it that stable sales are expectable during the period of the agreement. Yue Da will supply at least 150,000 tons of concentrate a year to Kunming, from December 2008 to December 2018 (renewable). Concentrate will be high-quality one produced by Yue Da's indirectly wholly-owned subsidiary, Tengchong Ruitu Mining and Technology Company Limited. The prices of concentrate will be determined in individual purchase orders based on the concentrate Kunming is purchasing from Tengchong district or its equivalent traded in the concentrate market. Anning Trading Company is taking part in the alliance agreement, as well. Dec. 17: <Territory Resources to effect two more iron ore shipments this year> According to the updates on marketing and sales activities announced Dec. 15 by Australian Territory Resources Limited (TR), the Company continues to maintain a fully sold position, with four shipments totalling 280,000 tonnes confirmed for December (two already completed) and a further three shipments programed for January 2009. During the past month, the Company has also achieved a minor price improvement for the sale of both lump and fines. During 2008, TR in conjunction with Noble Group in Hong Kong has completed a qualification process for both the lump and fines products with a number of key customers in China, and is now well positioned to commence supply under longer term commitments. <FMG continues legal review on suspended, delayed shipping contracts> Australian Fortescue Metals Group Ltd (FMG) revealed Dec. 16 that regarding the suspension and/or delays of certain shipping contracts, it is continuing its review of the legal status of such contracts, by seeking legal advice prior to taking its decisive action under the contracts. <China's domestic iron ore production increases> According to China's domestic production in Nov. 2008 of major industrial products announced Dec. 16 by National Bureau of Statistics, iron ore production (in terms of crude ore) totaled 72.385 Mt, an increase of 13.3% from the same month last year, with derived January to November production totaling 741.548 Mt, an increase of 20.4% from the previous comparable period. Dec. 18: <China's Shanxi Zhongyang Iron & Steel signs longterm contract with Vale> China's Shanxi Zhongyang Iron and Steel Company has signed a long-term iron ore supply contract with Brazil's Vale, the Company announced Dec. 11. The contract was signed between Yuan Yuzhu, chairman and president, Shanxi Zhongyang, and Cecilia Silva, Marketing Manager, Vale on Dec. 3. The details of the contract have not been revealed. Taking that opportunity, both parties discussed the global financial crisis and the future trend of the steel industry, and exchanged opinions on the strengthening of mutual cooperation and alliance. |
| last modified : Wed 07 Jan, 2009 [10:42] |
