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Major Events in Jun 2013 over Iron Ore (Fin.)
Jun 20:
<AML Achieves 20Mtpa Iron Ore Export Rate in Sierra Leone>

African Minerals (AML), a mining company operating the Tonkolili iron ore mine in Sierra Leone, announced on Jun 18 that, following the completion and commissioning of the high capacity second car dumper at Pepel Port, it has successfully achieved its target 20Mtpa export run rate during Q2 2013 as per their previous guidance. This is evidenced by the sailing of 10 Cape Size Vessels over the 30 days, from 18 May to 16 June 2013. The integrated mine and infrastructure have successfully operated, thus demonstrating that the Project became the first among iron ore projects in West Africa to be well underway. The Processing plants have been consistently operating above the 20Mtpa run rate target since 1 May. Following the commissioning of the high capacity car dumper at Pepel, the Rail and Port facilities started to ramp up towards target and from 18 May successfully despatched 10 Cape Size Vessels carrying 1.7 million tonnes of product during the subsequent 30 days. The average annualised run rate for the period from 18 May to 16 June was 20.7Mtpa.

Jun 21:
<Ministry of Steel Visits RINL and Assured Help to Allot Mines>

India's Rashtriya Ispat Nigam Limited (RINL) announced on Jun 18 that Sri Lokesh Chandra, Joint Secretary of Ministry of Steel, visited RINL for the first time and complimented RINL on the capability to compete with major steel makers like SAIL or Tata despite not having captive mines. RINL currently owns ironmaking facilities with three blast furnaces and steelmaking facilities with 6.3Mtpa of crude steel production capacity. The company plans to expand the crude steel production by 4 million tonnes, targeting the production to 10Mtpa. Sri Lokesh Chandra assured that all help would be rendered for allotment of mines.

<Metalloinvest Published Quarterly Results>
Russia's iron ore and HBI producer Metalloinvest announced for the first time its quarterly and US dollar based interim management statement on Jun 19. This is because the company appreciates the importance of openness and transparency to the investor community. Pavel Mitrofanov, Deputy CEO, commented, "The company's results for the first quarter were significantly better than we had expected at the end of 2012." Financial results were as follows: <> Revenue US$1,945 million (down 13.1%, Y-o-Y), <> EBITDA US$579 million (down 26.7%, Y-o-Y), <> EBITDA margin 29.8% (35.3% in the same quarter the previous year), <> Net income US$275 million (down 27.2%, Y-o-Y).

Jun 24:
<ITOCHU and Mitsui Acquire Interests in BHPB's Jimblebar>

ITOCHU Corporation and Mitsui & Co., Ltd. announced on Jun 21 that they have agreed to acquire interests in BHP Iron Ore (Jimblebar) Pty. Ltd. which is developing the Jimblebar Iron Ore mine in Western Australia, part of the Iron Ore business of leading mining company, BHP Billiton (Australia & UK). Binding documents have been executed on Jun 21. ITOCHU and Mitsui will acquire 8% and 7% interests respectively in Jimblebar and BHP Billiton will hold 85%. The investment amounts are approximately US$0.8 billion (76.0 billion yen) for ITOCHU and US$0.7 billion (66.5 billion yen) for Mitsui. ITOCHU and Mitsui will also contribute future development costs for Jimblebar in proportion to their shares.

<Namura's 11th WOZMAX Delivered>
Namura Shipbuilding Co., Ltd. announced on Jun 21 that the company delivered its 250,000 dwt class ore carrier "RMC RIGEL," which was constructed in Imari Works for MOL CAPE (SINGAPORE) PTE. LTD.. The vessel is the 11th "WOZMAX" which is allowed the maximum loading capacity at ports in Western Australia. Details of "RMC RIGEL" are as follows: Length: 329.95m/ Breadth: 57.00m/ Deadweight: 250,769 tonnes/ Capacity: 25 people.

Jun 25:

India's Visakhapatnam Steel Plant - RINL, AP Mineral Development Corporation (APMDC) and Kudremukh Iron Ore Company Ltd (KIOCL) announced that the three companies signed a memorandum of understanding (MOU) on Jun 23 for exploration and exploitation of iron ore deposits in Minchery, Nimkal village of Anantapur district. As per the MOU, APMDC and KIOCL would form a Joint Venture for exploration and exploitation of the iron ore deposits in Anantapur. KIOCL will set up a Beneficiation and Pelletisation Plant of 1.2 mtpa capacity with an investment ranging upto Rs 1500 crores at Anantapur.

Jun 26:
<ASSOCHAM against Relaxing Restrictions on Iron Ore Exports>

On Jun 24, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) appealed to the government against relaxing restrictions on iron ore exports in order to control India's rising current account deficit (CAD). "Any relaxation in export restrictions on iron ore will adversely impact the prospects of India's steel industry which is already reeling under severe crisis due to non-availability of iron ore for last couple of years owing to suspension of mining in Karnataka and Goa by the Supreme Court of India coupled with restrictions on undertaking mining activities in Odisha by the state government," said ASSOCHAM.

<FMG Strengthens Financial Position>
Australia's Fortescue Metals Group Limited (FMG), which is expanding its iron ore production capacity to 155mtpa in Pilbara region, Western Australia, provided on Jun 20 guidance on the following three areas: (1) The prompt and permanent reduction in operating and total costs; (2) The increasing financial strength of the company; and (3) An update on the potential sale of a minority interest in its port and rail assets. Cash on hand as at 30 June 2013 is expected to be in the order of $1.7 billion to $2.0 billion. The rail and port assets sale process is now substantially advanced.

Jun 27:
<BREE Estimates Prices at around US$117 a Tonne>

The Bureau of Resources and Energy Economics (BREE) of Australia announced on Jun 26 that in FY2014 (July 2013 - June 2014), Australia's iron ore exports are forecast to increase by 14.4%, to total 610 million tonnes compared to 533 million tonnes in FY2013. Export values of iron ore in FY2014 are estimated to have increased by 16.5% from the previous year to A$66.763 billion. Export unit price per tonne will be US$109.45, up 1.8% from US$107.56 in the previous year. BREE forecasts that an increase in iron ore supply will continue while China's economic growth will slow. Iron ore spot prices (62% iron ore content, fines) averaged around US$141 a tonne (FOB) in the Jan-Mar quarter of 2013. Spot prices reached a high of around US$152 a tonne in February but have since moderated to around US$115 a tonne in June 2013. For 2013 as a whole, contract prices for iron ore are forecast to average slightly above spot prices for the year, at around US$117 a tonne. Spot prices for 2014 are forecast to moderate due to increased seaborne supply and to average around US$112 a tonne.
last modified : Thu 04 Jul, 2013 [10:26]
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