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Major Events In January 2012 Over Iron Ore (2)
Jan. 13:
<Severstal To Construct A Direct Reduced Iron Facility In Trinidad And Tobago>

Severstal North America, one of the largest US-based steel producers and a wholly-owned subsidiary of OAO Severstal of Russia, one of the world's leading vertically integrated steel and mining companies, announced on Jan 11 that it entered into a Memorandum of Understanding (MOU) with the National Gas Company of Trinidad and Tobago Ltd, National Energy Corporation Ltd., Complejo Metalurgico Dominicano S.A., and Neal & Massy Holdings Ltd. to conduct a feasibility study for construction of a Direct Reduced Iron (DRI) facility in Trinidad and Tobago. The new facility would allow Severstal North America to secure a consistent supply of DRI for its Electric Arc Furnace operation in Columbus, Mississippi. Located on the Union Industrial Estate in La Brea, the project would involve the construction of a Direct Reduced Iron/Hot Briquetted Iron plant with a nominal capacity of 1.5 million metric tonnes per year.

<Iron Ore Shipments Delayed In Brazil And Western Australia Due To Cyclone>
World's top iron ore producing countries Brazil and Australia are hit by heavy rain or a tropical cyclone, which has a great impact on their iron ore operations. In Brazil, several areas of southeastern states are flooded and local governments have declared a state of emergency in a number of municipalities. With this serious situation, Vale has also declared force majeure (FM). In Western Australia, a tropical cyclone hit areas of northern coast, where some of the world's largest iron ore ports are located. Due to this, iron ore companies decided to halt their loading in the areas until the storm passes. Vale informed on Jan 11 that it was declaring force majeure on a number of its iron ore sales contracts effective from that day. High rainfall since mid-December 2011 and continuing over the last few days in the states of Minas Gerais, Rio de Janeiro and Espirito Santo has created serious challenges to the operations of its Southeastern and Southern Systems.

Jan. 16:
<Ukrainian Ferrexpo Produced 9.063 Million Tonnes Of Pellets In 2011>

Ferrexpo, Swiss headquartered and iron ore producer in Ukraine, announced its production report for 2011 on Jan 12. According to the report, pellets production for the year was 9.063 million tonnes, up 0.3% from the previous year at 9.033 million tonnes. Including production and reprocessing from purchased raw materials of 0.747 million tonnes, total pellets produced turned out to be 9.811 million tonnes, down 0.22 million tonnes (down 2.2%) from the previous year.

Jan. 17:
<NS United's Ore Carrier "NSU JUSTICE" Completed>

Namura Shipping announced on Jan 11 that the new 250,000 dwt class ore carrier "NSU JUSTICE" which had been constructed at Imari Shipyard & Works in Saga Prefecture was completed and delivered to HOSEI SHIPPING S.A., a Panama's subsidiary of NS United Kaiun Kaisha, Ltd. The vessel is the 5th "WOZMAX" which is allowed the maximum loading capacity at ports in Western Australia. The vessel set off on its maiden voyage to Brazil after the naming and delivery ceremony.

<Baoshan Iron & Steel's Net Income In 2011 Down 43.3%>
Baoshan Iron & Steel Co., Ltd. announced on Jan 14 its business results for 2011 as follows: revenue CNY223,119 million (up 10.2% from the previous year), operating profit CNY8,829 million (down 47.0%, same), pre-tax profit CNY9,250 million (down 45.8%, same), net income 7,302 million (down 43.3%, same). The operating margin was 4.0% with 4.2 points down from the previous year. The fact that the price of steel productions remained low due to record rise in raw material costs seems to have led to the this profit decline.

<First Shipment From Karara Project Scheduled For July - September Quarter 2012>
Gindalbie Metals, which is developing Karara Iron Ore Project through a 50:50 Joint Venture with Chinese steel producer Ansteel, announced its quarterly report Oct - Dec 2011 as follows: 1. First test shipment of magnetite concentrate is scheduled for the July - September Quarter 2012, 2. Construction costs remained within the $2.57 billion estimate, 3. All primary infrastructure remains on schedule to be completed ahead of the processing plant.

Jan. 18:
<Rio Tinto's W. Australia Iron Ore Production Reached 231 Million Tonnes In 2011>

Rio Tinto announced on Jan 17 its full year operations review in 2011. Iron ore production in Western Australia in 2011 increased by 6.879 million tonnes (3.1%) from the previous year to 231.167 million tonnes. Iron ore sales also increased by 2.675 million tonnes (1.2%) to 225.375 million tonnes. Chief executive Tom Albanese said "This was another record-breaking year in the Pilbara, Western Australia with both quarterly and full year iron ore production and shipments beating previous achievements, as our expansion programme continues apace. Across the Group, production has bounced back from the severe weather conditions experienced in the first half which had the biggest impact on Australian iron ore, coal and uranium."

<Vale Proposes US$ 6 Billion For 2012 Minimum Dividend>
Vale announced on Jan 16 that its Executive Board had approved and would submit to the Board of Directors a proposal for the distribution of a minimum dividend of US$ 6 billion in 2012, equivalent to US$ 1.177095354 per share for both common and preferred shares outstanding, to be distributed in two installments, on April 30 and October 31, 2012. The minimum dividend of US$ 6 billion represents an increase of 50% compared to the minimum dividend announced in 2011.

<FGM's Shipped 14.8 Million Tonnes Of Iron Ore During October - December Quarter 2011>
Australia's iron ore supplier Fortescue Metals Group (FMG) announced on Jan 17 its quarterly report for the period ending 31 December 2011. According to the report, total shipped tonnes of iron ore rose by 19.4% from the previous quarter to 14.766 million tonnes for the quarter. Annualised run rate of 59 million tonne per annum (Mtpa) achieved through the quarter with standout December month result of 5.3 million tonnes (29 vessels, average cargo size of 183,000 tonnes) approaching a run rate of 64Mtpa. The largest single cargo was WUGANG INNOVATION, onto which FMG loaded 248,106 tonnes on 22 December 2011. FMG plans to sustain the 55Mtpa run rate for the March 2012 Quarter.

Jan. 19:
<IOC's Concentrates And Pellets Production Down 8.5% To 13.456 Million Tonnes In 2011>

According to Iron Ore Company of Canada's (IOC) operational results for 2011 announced by Rio Tinto, production of concentrates and pellets in 2011 totaled 13.456 million tonnes, down 8.5% from the previous year. Sales volume for the year also dropped by 13.0% to 13.582 million tonnes. The Concentrator Expansion Project Phase 1, lifting capacity to 22Mtpa, is being commissioned as planned and Phase 2, improving the magnetite recovery circuit, is progressing with first production expected in late 2012.
last modified : Thu 09 Feb, 2012 [10:43]
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