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| HOME >> Topics List >> August, 2009 >> 28 (Fri) |
| Major Events In Aug 09 Over Ferrous Raw Materials (1) |
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Aug. 3: <ArcelorMittal incurs US$792 million loss for 2Q09> According to the second quarter 2009 results announced by ArcelorMittal, the Company posted a Net Loss of US$792 million, which was due in part to exceptional charges amounting to US$1.2 billion pre-tax, related primarily to write-down of inventory (US$0.9 billion) and provisions for workforce reduction (US$0.3 billion). Meanwhile, the Company successfully reinforced financial structure by reducing Net Debt by US$3.8 billion to US$22.9 billion. <Steel mills in USA squeezing losses with US Steel's net loss reduced to US$392 million> Net loss magnitude for the second quarter of 2009 is being improved at U.S. steel companies. Net losses of U.S. Steel and AK Steel ameliorated with respect to the previous quarter at US$392 million and US$48 million, respectively. According to U.S. Steel, the Company's second quarter operating loss was in line with the first quarter as its order book and operating rates remained at very low levels, spot market prices declined and it continued to incur carrying costs for its idled facilities. Aug. 4: <Australian Mount Gibson Iron's 2Q09 results see improvement> According to the operational results for the April to June quarter of 2009 announced by Australian Mount Gibson Iron Limited ("MGI"), crushing at both Tallering Peak and Koolan Island iron ore operations totaled 1.632 Mt (down 15.3% from the same period last year), and shipments 1.670 Mt (up 1.6%). Derived January to June operations resulted in 2.833 Mt of crushing (down 15.6% from the previous corresponding period) and 3.007 Mt of shipments (up 4.5% from ditto). It appears both crushing and shipments that suffered negative impacts of the global financial crisis since the fall of 2008 already bottomed out during the October to December quarter of 2008 toward recovery. In terms of financial results for the fiscal year ended June 2009, the Company posted A$431.7 million of Revenue and A$42.6 million of Net profit after tax. <Australian Mount Gibson Iron terminates three iron ore supply contracts> During the December 2008 quarter, MGI terminated agreements with three of these customers: Pioneer Iron and Steel Group Co Ltd, Rizhao Steel Holding Group Co Ltd and Sinom (Hong Kong) Ltd, in accordance with the terms of each agreement. Two of these former customers have issued counterclaims on the basis that the termination by MGI was not justified. The Company is confident that the counterclaims are without substance. Aug. 5: <US Cliffs' 2Q09 net income US$45.2 million> According to the operational results for the April to June quarter of 2009 announced by U.S. Cliffs Natural Resources Inc. ("Cliffs"), the Company posted US$390.3 million of Revenue (down 61.3% from the same period last year), and US$17.3 million of Operating Loss during the period. With changes in fair value of foreign currency contracts Cliffs secured US$45.2 million of Net Income (down 84.6%). North American pellet production remained 3.1 million long tons (2,240 pounds) which was a considerable low level compared with production in recent several years. The Company expects Asian Pacific Iron Ore Operations to achieve quantitative recovery. Sales volume from Koolyanobbing operations in the mid-west of Western Australia is expected to be 8.5 million tonnes (Mt), an increase from previous expectations of 8.0 Mt. <Anglo American posts US$2,970 million net profit from 1H09 operations> The interim financial results for the half year period ended June 2009 announced by Anglo-South African resources company Anglo American show significant reductions in revenue and profit as: 'Group revenue including associates' at US$11,132 million (down 37.9% from the previous corresponding period) and 'Operating profit including associates before special items and remeasurements' US$2,136 million (down 65.4%). Profit on the disposal of the residual investment in the Company's associated companies allowed 'Profit for the financial period attributable to equity shareholders' to secure US$2,970 million with the less declining rate of 30.6%. Sir John Parker was appointed Chairman effective from August 1, 2009 to succeed Sir Mark Moody-Stuart. Aug. 6: <Jac Nasser appointed next BHP Billiton chairman> BHP Billiton announced August 4 that Jac Nasser will succeed Don Argus as Chairman when Mr Argus retires as Chairman and Non-executive Director in early 2010. Jac Nasser joined the BHP Billiton Board as a Non-executive Director in 2006 and is a member of the Board's Risk and Audit Committee. He has extensive international business experience gained during his 33 years with the Ford Motor Company where he was President and Chief Executive Officer. With Ford, he has held senior management positions in Asia, South America, Europe and North America. In 1989, he was posted back to Australia to take charge of Ford's Australian operations. During this period, Mr Nasser was a champion of a strong manufacturing and technical base in Australia leading Ford Australia to achieve excellent results. < Tata Steel celebrates 100th anniversary of iron ore discovery in Joda> India's Tata Steel celebrated August 4 its 100th anniversary of iron ore discovery in Joda in Keonjhar district of Orissa. While addressing the gathering, Mr B. Muthuraman, Managing Director, Tata Steel said, "I laud the geologists and mining engineers for the hard work that has gone into positioning Tata Steel prominently in the global minerals arena. It has subsequently led to wealth creation for the community. The discovery of iron and chrome ore has not only impacted Tata Steel but also the country as a whole. Tata Steel has played a pioneering role in the mining and steel sector." <Magnetite reserve in Nihe, Anhui province, China turns out to reach 120 Mt> After two-year exploration and drilling at more than 70 holes measuring 80,000 meters in total length, a geological team has discovered a large iron ore deposit at Nihe in Lujiang County, Anhui province, China's Iron and Steel Association (CISA) announced August 5. According to a preliminary report, the deposit has a magnetite reserve of 120 Mt and an iron sulphide ore (pyrite) reserve of 35 Mt with a potential economic value of nearly 50 billion yuan. The definitive report will be completed by 2010. Aug. 11: <LKAB president Ola Johnsson passes away> Ola Johnsson, President and CEO of Sweden's state-owned resources mining and resources company LKAB passed away at home in the evening of August 5 at the age of 53 after a period of illness. Lars-Eric Aaro, Acting President and CEO of LKAB lamented over his death, stating; "With his immense professional knowledge and his unique personality, Ola Johnsson has played a decisive role for LKAB's development as a world-leading producer of iron ore pellets." <Roger A. Downey appointed next CEO, MMX> Brazilian iron ore resources company MMX Mineração e Metálicos S.A. ("MMX") announced August 3 the appointment of Roger Allan Downey as the new Chief Executive Officer (CEO) of MMX. Since 2005 Mr. Downey has been responsible for coverage of the mining and steel companies in Latin America in Credit Suisse. Before that, he worked for 14 years in the mining industry in sales, marketing, business development and strategy areas of important iron ore world producers, such as Vale and Rio Tinto. |
| last modified : Wed 02 Sep, 2009 [11:25] |
