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|Major Events in Sep 2013 over Iron Ore (1)|
<AngloAmerican's Iron Ore Business to Reach 120Mtpa>
Worldwide resources company AngloAmerican is developing iron ore projects in South Africa and in Brazil. The company has widely been known in precious metals and non-metalic industries and later entered into iron ore industry. Together with the expansion of existing South African projects and the new acquisition of iron ore resources rights in Amapá and Minas-Rio, Brazil for US$3.5 billion in 2008, iron ore production capacity of the group as a whole was said to be 150Mtpa initially. Later, a part of resources was sold and now the company has the capacity of 70Mtpa in South Africa and 52Mtpa in Brazil, a total of over 120Mtpa.
<Russia's MMK Has Decreased Sales>
Russia's major steel producer Magnitogorsk Iron and Steel Works (MMK) announced its consolidated financial statements for April - June quarter 2013. For the quarter, MMK Group sales were US$2,161 million, down 5.3% from the same quarter the previous year, which was affected by a reduction in the average sales price for products. The cost of sales in the quarter declined by 6.8% (ditto) to US$1,834 million due to lower prices for major raw material inputs and management efforts to reduce costs. EBITDA was US$291 million, up 13.7%, ditto. The net loss was US$155 million, driven by a loss on currency swings and less profit from the sale of associated companies.
<Brazil's MMX Sells Assets in Chile>
Brazil's MMX Mineração e Metálicos S.A. (MMX) announced that it has signed an agreement to sell all its shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A., a company incorporated and established in compliance with Chilean law. Subject to compliance with the preceding conditions, this transaction assures the receipt of royalties by the company on iron ore sales by tonne as from the start-up of commercial production and exploitation of the MMX Chile assets by Cooper Mining. MMX announced in March 2013 that the company would withdraw from its investment project in assets in Chile. The divestment of its operations in Chile is aligned with its business strategy, optimizing its asset portfolio and simplifying its corporate structure, in order to maximize value creation for its shareholders. The company focuses on iron ore business in Brazil.
<WA Iron Ore Selling Price for Oct-Dec below $118>
Iron ore selling price (fines, Fe content 62%, FOB Western Australia) for October - December 2013 decreased by approximately 7% from $126 for the previous period to below $118. During the computation period (June - August), the spot price hovered around low $110 in June but was on the increase in July to over $130 in late July. Chinese mills built up inventory at port and increased procurement boosted freight. In the middle of August, the spot price exceeded $140 for the first time in five months since April 2013. On the other hand, steel market in Asian countries including China has been improving. However, it is not profitable yet, having room for more improvement.
<Wuhan Starts Trial Run at Bong Iron Ore Mine in Liberia>
The Bong iron ore mine in Liberia, which Wuhan Iron & Steel (Group) Corp. is developing, is being given a trial run. The company announced on Sep 2 that the trial run was started on Aug 28 but was challenged by various problems. On Aug 29, it eventually started running well with the first ore production. The Bong iron ore mine is Wuhan Iron & Steel's first investment project in steel resources. WISCO CAD (HONG KONG) MINING COMPANY LIMITED (former CHINA-UNION (HONG KONG) MINING COMPANY LIMITED) is developing the project.
<IMIC's Strategic Collaboration Agreement on Iron Ore Project in Cameroon>
International Mining & Infrastructure Corporation plc (IMIC), the company focused on unlocking the value of African iron ore through infrastructure development and strategic investments in junior miners, announced on Sep 2 that Hebei Iron and Steel Company has joined in a strategic collaboration agreement with China Railway Materials Company Limited (CRM), IMIC and African Iron Ore Group (AIOG) for iron ore off-take from the Nkout project in Cameroon. This agreement has been signed by IMIC, AIOG, CRM and Hebei in accordance with the terms of the Heads of Agreement announced on April 17, 2013. The off-take is intended to guarantee financing of the project.
<Rio Tinto Loads First Ship from 290 Mt/a Expansion Project>
Rio Tinto has achieved the milestone of loading the first shipment of iron ore from its expanded port, rail and mine operations in Australia. This marks the commencement of commissioning of the expansion programme, which will see overall capacity for Rio Tinto's iron ore operations in Western Australia increase to 290 million tonnes a year. The 290 expansion project is scheduled for completion in Jul - Sep 2013. The Tai Shan, a Rio Tinto Marine-chartered Cape-size class vessel, has embarked from the new Cape Lambert B wharf carrying the first shipment, a cargo of 165,000 tonnes of Pilbara Blend fines. The shipment is bound for Nippon Steel & Sumitomo Metal Corporation's Kimitsu works in Japan.
<Assmang Has Record Sales Volumes in Iron Ore>
According to South Africa's mineral resources company, Assmang's results for FY2013 ended June 2013, the company had turnover of R25.01 billion (approximately US$2.43 billion, US$1 = R10.29), up over 5% from the previous year. This was mainly due to the record sales volumes in iron ore. Headline earnings decreased by 7.4%, ditto to R6.472 billion (approximately US$629 million) mainly as a result of higher iron ore sales cost and the shutdown of ferromanganese furnaces. Iron ore production increased by 2.445 million tonnes (17.9%) from 13.658 million tonnes in the previous year to 16.103 million tonnes. Sales also rose by 8.9%, ditto to 16.07 million tonnes.
<Chilean CAP Posts Significant Decline in Revenues and Profit>
According to Chilean CAP's consolidated financial statements for January - June 2013, the company posted a large profit decline as follows: Revenues US$1,057.893 million (down 17.8% from the same months the previous year), Gross profit US$297.355 million (down 27.6%, ditto), Profit from operating activities US$188.139 million (down 42.6%, ditto), Profit from continuing operations US$123.482 million (down 48.6%, ditto). The company has three business areas which are iron ore mining (CAP Mining), steel production (CAP Steel) and steel solutions. Among these, CAP Mining has four principal units for management purposes as follows: Huasco Valley, Elqui Valley, Copiapó Valley and Others.
<EVRAZ External Sales of Iron Ore Products at 2.13Mt in 1H 2013>
According to Russia's mining and steel production company Evraz's financial results for January - June 2013, revenue was US$7,362 million (down 3.4% from the same months the previous year), EBITDA was US$939 million, (down 20.7%, ditto) and net loss was US$122 million. Crude steel production was 8.1 million tonnes (down 3%, ditto). External sales of iron ore products were 2.133 million tonnes (up 6.5%, ditto) and intersegment sales of iron ore products were 6.892 million tonnes (down 6.0%, ditto).
|last modified : Wed 02 Oct, 2013 [15:47]|