Announcement

Tuesday, November 29, 2011

Google scraps renewable energy cheaper than coal initiative

Google is in the midst of some, as they call it, spring cleaning out of season. They are shutting down a number of projects that haven’t quite hit the mark the way they had hoped.

Unfortunately for the environment, Google’s four year long “Renewable Energy Cheaper than Coal RE” project is in the trash bin. The original premise was to invest in solar technology with the hope of driving down the price of renewable energy. Now, the technology powerhouse has decided that others are in a better position to continue the work. As they wrote on their blog, Google published their results “to help others in the field continue to advance the state of power tower technology, and we’ve closed our efforts.”

This doesn’t mean that they are turning their backs on all things green. They reported on the blog, “We will continue our work to generate cleaner, more efficient energy including our on campus efforts, procuring renewable energy for our data centers, making our data centers even more efficient and investing more than USD 850 million in renewable energy technologies.”

Other projects to bite the dust include Google Wave, Google Friend Connect and Google Search Timeline.

(Sourced from www.ecorazzi.com)

Blastcrete Equipment introduce new mine mate machine


Blastcrete Equipment has introduced the Mine Mate, designed to mix and pump concrete material for underground mine sealing and stabilisation, grouting and various other shotcrete applications. The Mine Mate is a convenient solution when ready-mix concrete is not an option. Featuring Blastcrete’s X-10 ultra-high pressure swing tube pump, it is a highly productive and reliable machine that’s also easy to operate and maintain.

The Mine Mate uses the wet-mix shotcrete process. It was created at the request of several customers seeking a machine to apply shotcrete in underground coal applications. In contrast to the dry shotcrete (gunite), the wet shotcrete process minimises dust emissions and improves visibility making it much safer, particularly for underground use. Of compact configuration, the Mine Mate is designed for operation within a 1.2 m ceiling.

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Tuesday, November 8, 2011

Trafigura to boom as giant Mongolia awakens


Trafigura Beheer BV plans to expand in Mongolia to deliver more iron ore, coal and copper to the China market.

Mr Mikhail Zeldovich head of Trafigura’s Russia and Mongolia unit said that it secured its first iron ore and coal supply agreements in the country in the past few months. Talks on more accords are in progress and Trafigura’s first Mongolian tin shipment is due this week.

Mr Zeldovich said that “In all commodity businesses I anticipate strong growth and in the bulk commodities of coal and iron ore I am targeting a multiple of what we already have. We very much see Mongolia as a sleeping giant of resources that’s now beginning to awaken.”

According to Ulan Bator based Trade and Development Bank, Mongolia in June surpassed Australia as the biggest seller of coking coal to China and total exports are due to rise by 65% this year. Rio Tinto Group will begin commercial output from the Oyu Tolgoi mine in 2013 a deposit in central Mongolia that it says is one of the biggest untapped sources of copper and gold.

A mining boom in the world’s most sparsely populated nation promises the greatest influx of wealth for Mongolia since Genghis Khan conquered most of Europe and Asia in the 13th century. Economic growth may surge to 23% in 2013 more than twice the forecast expansion in China, as mining projects begin production, the International Monetary Fund said in April.

Mr Zeldovich said that last year, Amsterdam based Trafigura provided more than USD 40 million in financing to help start production at a lead and zinc mine in eastern Mongolia in exchange for an off take accord. The trader has also invested in a trucking company in Mongolia to transport coal from producers including Mongolyn Alt Group to China. It ranks among the top three sells of copper in Mongolia.

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Coal extraction in Bangladesh from proven reserve unlikely within 2 yrs


Experts said that commercial extraction of the country's proven coal reserve is unlikely to start, at least within the next couple of years, despite the desperate national needs for use of this fossil fuel to generate electricity.

According to them, the government's target to generate 20,000 MW power by 2021 would be difficult to achieve without the use of coal, as the cost of petroleum oil as an alternative source of fuel for electricity generation, remains high.

A parliamentary standing committee on the ministry of energy recently made its recommendations in favour of open-pit mining for extraction of coal. However, the authorities concerned are still waiting for a detailed report from a newly-formed expert committee.


The 15 member expert committee, headed by former Petrobangla Chairman Mosharraf Hossain is expected to submit its detailed report, by February next.

However, a detailed study on various aspects including comparative problems and prospects of both open pit and underground mining, may take a longer time.

Bangladesh has five coal fields in the northern region, comprising Barapukuria, Phulbari, Khalaspur, Dighipara and Jamalganj with a total estimated reserve of more than 3.0 billion tonnes, officials of the ministry of power, energy, and mineral resources said.

The committee will consider the geological structure, depth, aquifer, financial and environmental impacts of the coalmines to recommend appropriate mining method for each of them, a senior energy ministry official said.

The committee will also estimate the expected financial loss to be faced by the people around the coalmines and subsequent compensation to be given to them by the government.

Prof. Mohammad Hussain Mansur chairman of Petrobangla told the FE that "To have details on various subjects and aspects, the committee may take more than the stipulated time.”

The Petrobangla chief said that "The authorities concerned will have to perform a huge task of removing and rehabilitating the affected people, even before the start of any mining operation.”

Prof. Mansur said that "Simultaneously, the authorities will also need to set up coal-fired power plants so that the extracted coal can be utilised; otherwise, there may be accidental fire causing an extensive damage.” He added that "Coal stocks often cause disasters by catching fire.”

He said preparations for coal mining, including rehabilitation of the affected people, setting up of power plants simultaneously, will be a tough task for an impoverished country like Bangladesh.

(Sourced from FE)

China to boost its domestic iron ore supply - Report



Economic Observer quoted sources with the China Iron and Steel Association said China will boost the domestic supply of iron ore to a large extent during the 12th Five year Plan period (2011-15) in order to rely less on the three world mining giants Vale, Rio Tinto and BHP Billiton.

The sources said the percentage of domestic supply will rise to over 45% by 2015 a substantial rise from the level of 32% in 2010.

Mr Ding Gen senior analyst with custeel.com said that a 13% rise in supply was possible.

Mr Rong Gang chief economist with hbh-steel.com told the Global Times that steel has become a pillar industry in China, having contributed a lot to the fast growth of its economy. China consumes an annual average of 700 million tons of crude steel.

As more than half of China iron ore demand is met through imports, primarily from Brazil and Australia, the pricing of iron ore has become a heated issue.

Mr Luo Tiejun an official with the Ministry of Industry and Information Technology said that a supply guarantee system for iron ore would be written into the steel industry's five year plan and that iron ore supply would be regarded as an issue of national security a move welcomed by industry insiders.

He said that "In 2010, the profits of the big three exceeded the total profits of the 78 largest Chinese steel producers."

Dominance of the global market by the big three firms has resulted in limited profit margins for Chinese steel producers.

(Sourced from Economic Observer)

China may implement protective development of coking coal


It is reported that at the China Mining Congress & Expo 2011 held at November 6 to 8 in Tianjin Meijiang Convention and Exhibition Center, a market player has stated that China may implement protective development of coking coal.

China-based National Energy Administration is studying and

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Sunday, November 6, 2011

Heron Resources stars drilling at Shay Gap project


Heron Resources has commenced a reverse circulation reconnaissance drilling program at its 100% owned Shay Gap Iron Ore Project in the Pilbara, Western Australia, targeting Detrital and Channel Iron Deposits.

The Shay Gap Project, which covers 290 square kilometres, is located about 160 kilometres east of Port Hedland, and directly south-west and adjacent to the Yarrie-Cundaline Ridge iron ore mines, operated by BHP Billiton.

Previously reported Heron rock chip samples returned iron grades up to 68% from surficial detrital material shed from the ranges and gravity surveying has defined a number of encouraging “highs” along the range front.

The company recently completed Heritage Agreements with the Traditional Owners. The drilling will map the iron-enriched regolith and test for the source of the gravity anomalism.

(Sourced from www.proactiveinvestors.com.au)

Athena Resources drilling extends high grade magnetite at Byro Iron Ore Project

Athena Resources latest drilling has expanded the high grade magnetite horizon at the Byro South and Whitmarsh Find prospects within the Byro Iron Ore Project.

All drill assay and rock chip results indicate the magnetite iron ore is of similar high grade and quality at FE1, Byro South and the Whitmarsh Find ore bodies.

Magnetite intersections at Byro South include:
- 10 metres at 31.48% iron from 58 metres;
- 26 metres at 31.54% iron from 80 metres; and
- 18 metres at 35.69% iron from 90 metres.

At Whitmarsh Find magnetite was also intersected with results including 24 metres at 32.76% iron from 52 metres.
The 1,811 metre drill program comprised 14 reverse circulation drill holes and two geotechnical / metallurgical PQ/NQ diamond core holes, with targeting based on high definition aeromagnetic signatures and surface outcrop mapping and sampling.
The highly prospective Byro Project is in the Mid-West region of Western Australia. It is strategically located 100 kilometres west of the proposed Midwest Iron Ore Railway which is planned to link existing and future iron ore projects in the Mid-West Region to the proposed Oakajee deep water bulk shipping port north of Geraldton.
(Sourced from www.proactiveinvestors.com.au)
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Adaro Energy sees rising coal production

Indonesia’s second biggest coal miner Adaro Energy aims to produce 53 million to 55 million tonnes of coal in 2012, up from 46 million to 48 million tonnes forecast for this year.

Mr Garibaldi Thohir president director of Adaro said that he expected the company to maintain an average

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Salmon River ink MoU with General Steel Holding

Salmon River Resources Ltd announced that it has signed a non binding MoU with General Steel Holdings Inc a company listed on the New York Stock Exchange, for itself and on behalf of certain subsidiaries and affiliates regarding rights to purchase part of any future iron ore production from

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Indian white coal gains popularity in Europe

Commodity Online reported that the white Coal produced from agricultural waste in Rajasthan has gained popularity in European countries.

The white coal produces very low level of carbon which helps to protect the environment as result the demand for the commodity has been rising in Europe

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Rio Tinto and University of Western Australia developing advanced exploration technology

World leading mining exploration technology from Rio Tinto's Mine of the FutureTM program attracted a visit today from His Royal Highness The Duke of Edinburgh as a prelude to the Commonwealth Heads of Government Meeting in Perth.
br> At The University of Western Australian His Royal Highness
br> Read More

Mitsubishi Corp reports H1 net profit fall

Japanese trading house Mitsubishi Corp said that its net profit for the six months ended September 30 fell 8.3% from a year earlier, citing lower margins from trading in natural resources and steel.

Mitsubishi, Japan's biggest trading house by revenue, also said it has decided to invest

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Thursday, October 20, 2011

Chinese coal prices up by 2pct


China's raw coal prices edged up further last week, buoyed up by increased demand from coal consumers for winter use, the Ministry of Commerce was cited as saying.

The demand for the fuel has escalated as coal consumers try to stockpile ahead of a frosty winter. Power plants in South China also accelerated purchasing activity, which gave another push for the price hike. The price of lignite, soft coal and anthracite was up by 2.8%, 1.5% and 1.3% respectively.

Industry sources reported that the price of thermal coal produced in Shanxi province increased by 2.1% at Qinhuangdao port on October 14 compared with a week earlier.

Bohai-Rim Steam-Coal Price Index, or BSPI gained by CNY 10 to CNY 842 compared with the previous week. The weekly gauge tracks power-station coal prices at six major Chinese ports.

(Source: www.steelhome.cn/en)
China steel information centre and industry database

Zimbabwe Hwange Colliery plans to ship coal through Maputo


Bloomberg cited Mr Oliver Maponga Business Development Manager as saying that Hwange Colliery Ltd Zimbabwe largest coal miner plans to ship 30,000 to 50,000 tonnes of coal a month through Mozambique’s port of Maputo.

Mr Maponga said Hwange is in talks with port authorities after starting to use Mozambique central Beira port last year. The company which produces 400,000 tons of coal a month is studying markets in India China and Western Europe.

(Sourced from Reuters)

Why Baltic index edging higher


Reuters reported that the Baltic Exchange main sea freight index which tracks rates to ship dry commodities inched higher recently although a potential pullback in Chinese iron ore imports would put the put the brakes on a recent rally in the larger capsize market.

Brokers said the market was watching to see if weaker than expected Chinese economic data issued on Tuesday would signal a pullback in raw materials demand which would dent the dry freight market already struggling with a glut of vessels. The overall index rose 4 points to 2,140 points.

Mr Erik Nikolai Staveseth Arctic Securities analyst said "We still think rates in the Capesize segment will remain firm going forward. Imported iron ore prices are on the decline and rapidly coming in competition with lower grade domestic ore which will shift the pendulum towards imports."

Mr Jeffrey Landsberg managing director of dry bulk consultancy Commodore Research said a fall in Chinese s
eel prices this week could put pressure on Capesize rates. He said that "If prices continue to decrease and stockpiles stay high, near term Chinese steel production would remain likely to suffer a decline."

He added that "In addition, Chinese iron ore production has remained robust which is putting pressure on global iron ore prices and Chinese iron ore fixture volumes this week."

The recent dry freight market rally had been driven by firmer coal and iron exports from Australia and Brazil to China which boosted the larger Capesize market. Coal imports into Japan have also picked up. Manufacturing in Australia had been disrupted earlier this year by floods while Japanese industrial raw materials import demand had been affected by an earthquake in March that crippled a nuclear plant and threw Japan economy into disarray.

In August, the overall index which gauges the cost of shipping commodities including iron ore, coal and grain dropped to its lowest in more than three months after falling for 18 consecutive sessions. It has remained erratic and is still over 20% down from the same period last year.

(Sourced from Reuters)

S Korea WP seeks 260000 tonnes coal for Nov to Dec

Reuters quoted the utility said Korea Western Power Co Ltd is seeking 260,000 tonnes of bituminous coal for arrival between November 15 and December 15 through a spot tender.

The utility said the tender for NCV minimum 5,600 kilocalories per kilogram bituminous coal supply to Taean Power Plant will close at 2 PM on October 20.

(Sourced from Reuters)

African Minerals to ship iron ore from Tonkolili mine in Sierra Leone by end October

Reuters quoted the London listed metals explorer and developer said African Minerals Ltd will start exporting iron ore cargoes to China and Europe from its Tonkolili mine in Sierra Leone at the end of this month.

The company commenced mining iron ore in Sierra Leone in December 2010 and has since stockpiled material. Iron ore exports will start this month and African Minerals expects to export about 1.2 million tonnes of iron ore during the current fourth quarter.

Mr David Tucker its head of sales and marketing said "We have three cargoes programmed for China and one cargo programmed for Europe. He said that we are selling some trial cargoes, but really the intention is from those trial cargoes to cement long-term off-take agreements with partners."

He said that African Minerals is currently in talks with European Chinese and Asian steelmakers to sign more off take agreements. He added that we are not tied to a specific index but our initial contracts reference the Platts index."

He also said "We are talking about something which is linked to the China CFR price, but the actual pricing mechanism is a bit of secondary importance to us."

Shandong Iron & Steel, the world ninth largest steel group has already agreed to pay USD 1.5 billion for a 25% stake in African Minerals' flagship iron ore project and will take 25% of its production. Mr Mike Jones head of corporate development and investor relations said to go ahead, the deal still requires Chinese government approval, which is expected by December 31.

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Gunvor buys 33pct of US coal mine for USD 400 million





Interfax reported that Gunvor the commodities trader founded by Gennady Timchenko and Torbjorn Tornqvist has acquired a coal asset in the United States.


Pinesdale LLC a unit of Gunvor Group has paid USD 400 million for a one-third interest in the Signal Peak coal mine in Montana, one of the sellers. FirstEnergy will receive USD 260 million of the selling price and the remainder will go to private coal firm Boich.

FirstEnergy and Boich bought Signal Peak in 2008. At the time, FirstEnergy paid USD 125 million for a 45% stake in the project. The deal with Gunvor calls for creating a new corporate entity, Global Mining Holding Company in which the three investors will each own a one-third interest.

Mr Wayne Boich Jr president and chief executive of Boich Companies said "One of the key advantages that Gunvor Group brings to this venture is the ability to utilize their commodity trading relationships in such markets as Japan, China, Korea and Chile to sell more coal."

Mr Timothy Legge Gunvor SA chairman said this is Gunvor first investment in a coal mine in the United States. The trader can ship large amounts of coal through the deepwater port of Vancouver.

Under the deal, FirstEnergy Generation a subsidiary of FirstEnergy Corp has revised its original coal purchase agreement with Signal Peak to reduce annual purchases from 6.8 million to 1.8 million tonnes. Most of the coal from the mine will now be purchased by Gunvor.

Signal Peak now mines more than 8 million tonnes of thermal coal per year, but this figure is expected to grow to 13.5 million tonnes by 2015.

(Sourced from Interfax)

Afferro Mining identifies significant iron ore target at Ntem in Cameroon


Shares in Afferro Mining said that it has identified a significant target within its Ntem iron ore permit in south west Cameroon.

Following interpretation of the latest airborne geophysical survey over the property, the company said it has identified a number of prospective targets at Ntem.

The strongest of these displays magnetic properties similar to those of the company projects in Putu in Liberia and Nkout in Cameroon. The target has a strike length of approximately two kilometres and is one kilometer wide.

Afferro said it will undertake a systematic geological exploration program leading to reconnaissance drilling in the first quarter of 2012.

Mr Luis da Silva CEO of Afferro Mining said "This latest interpretation is significant for the company in terms of strengthening our project portfolio and implementing our strategy in Cameroon, where we have already made considerable progress with our Nkout iron ore project.”

He said that “The Ntem project is located 80 kilometres from the coast and close to the same proposed railway infrastructure that the company's Nkout project is expected to use. We look forward to the results of the grab sampling and subsequent reconnaissance drilling in early 2012."

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Bacchus Marsh coal drill exceeds expectations


It is reported that opponents of brown coal exploration near Bacchus Marsh west of Melbourne fear better than expected results will boost the likelihood of mining there.

Mantle Mining reports there is an estimated 1 billion tonnes to 2 billion tonnes of brown coal in the area.

The company says two of its four drill holes around Parwan have coal seams that are more than 50 metres thick which is 25% more than expected.

Ms Kate Tubbs president of the Moorabool Environment Group has told ABC Local Radio that she is determined to stop coal mining on her land. She said "It's quite appalling to think that you do have no rights over your land or your food security or your water security or any part of it and that they can just come in and just take over."

She added that "They are out-of-towners coming to do nasty things to our area if they have their way."

Ms Tubbs says she is not prepared to sell her property. She said that "The funny thing about it is that with all of the value of the so-called good coal that we've got underneath us, that we wouldn't realise a cent of that, and that all that we would be offered in compensation is the market value of our land which is plummeting quickly, with possibly five per cent tacked on top of that."

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Newland Resources delivers maiden 150 million tonnes JORC Resource at Comet Ridge coal project


22 times viewed. Friday, 21 Oct 2011Newland Resources has reached its first major milestone for the Comet Ridge Project area in the Bowen Basin of Queensland with the release of a maiden JORC Resource of 150 million tonnes of coal.

Independent geologists, McElroy Bryan Geological Services prepared the JORC Resource Statement. The Resource has coking coal potential of 50 million tonnes of coal at depths less than 50 metres and subsequent drilling is expected to increase the Resource.

The Resource at the Comet Ridge Project is contained in the Fair Hill Seam and has a cumulative thickness of between 2.5 and 4.0 metres.

Mr Gavin May Newland Resources' managing director said while 150 million tonnes is a significant tonnage, the 50 million tonnes of resource with coking coal potential at depths less than 50 metres is what excites me.

He said that "NRL has a clear focus on delineating economic coal, so future exploration will concentrate on conversion of these resources into mineable reserves.”

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China Guangxi province ranks second for coal imports


Southwest China’s Guangxi province has become one of the country’s largest coal importers, second only to Guangdong province.

Coal imports via the ports of Guangxi province have seen continuous increase in recent years, rising to 16.905 million tonnes in 2010 from 3.4 million tonnes in 2005, at an annual growth rate of 37.8%. Statistics from China General Administration of Customs show that coal imports into Guangxi province totalled 18.758 million tonnes in January through September this year accounting for 15.2% of the country total coal imports during the given period. The imported coal price averaged USD 97.7 per tonne up by 13.8%YoY. The imports of anthracite totalled 9.033 million tonnes, accounting for 48.2% of the province overall coal imports.

Vietnam, Indonesia and Australia are the main suppliers of the fuel, with exports to Guangxi province standing at 8.95 million tonnes, 4.249 million tonnes and 2.831 million tonnes respectively. The combined imports from the three countries occupy 83.5% of the province’s overall imports during January to September.

(Source: www.steelhome.cn/en)
China steel information centre and industry database

Jameson Resources eyes return to Canadian coal space with project acquisitions


Jameson Resources has exited a voluntary trading suspension after announcing two separate deals to acquire coal assets in northeast British Columbia, Canada likely to be popular with investors.

The company which requested a voluntary suspension from the ASX on Monday has entered into a sale and purchase agreement to acquire Dunlevy Energy which holds the Dunlevy coal project located in the Peace River Coalfields.

Jameson will settle the deal with a CAD 51,000 payment to each Dunlevy shareholder totaling USD 153,000 and the issue of 4 million non voting, convertible, redeemable, preferred shares to each shareholder, totaling 12 million. These shares will be exchangeable for fully paid ordinary shares in Jameson on a one for one basis, upon the meeting of certain milestones. Jameson shares were last trading at AUD 0.14 valuing the shares at around AUD 1.68 million.

Meanwhile, Jameson has also entered into a binding letter of intent to acquire certain assets of Nexx Coal including the Graham River, Peace Reach and Carbon East coal projects which are also located in the Peace River Coalfields. Jameson will reimburse Nexx’s licence application fees of CAD 132,700.50 and issue 10 million non-voting, convertible, redeemable, preferred shares. Again, these shares will be exchangeable for fully paid ordinary shares in Jameson on a one-for-one basis, upon the meeting of certain milestones.

1. The assets
The Dunlevy and Nexx projects comprise approximately 46,700 hectares of exploration ground. The projects overlie the north-west extension of the Peace River Coal Fields District of northeast British Columbia. Some of Canada major coking coal and pulverized coal injection coal mines Willow Creek, Brule, Wolverine and Trend are located along strike from the property.
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Fancamp Exploration intersects 30pct Fe at Lac Lamelee South Project

Fancamp Exploration Ltd provide the first assay results from the Company drill program on the 100% owned and previously undrilled Lac Lamelee South Project which is located about 15 kilometers west of ArcelorMittal Fire Lake Mine. The three holes reported cover some 300 metres strike Read More

Monday, October 3, 2011

China Coal resumes output at two mines halted after deaths

Bloomberg reported that China Coal Energy Co has resumed production at two of five mines that were suspended after flooding killed 10 workers at a site run by its parent.

The company said in a statement to the Hong Kong Stock Exchange the mines passed a safety inspection by local authorities in Shanxi province. Three other sites are starting checks.

Xinhua News Agency reported on September 17 that production at the five underground mines was suspended after flooding at a pit run by China National Coal Group Corp the nation second largest coal producer and parent of the listed company killed 10 people.

China Coal said the provincial government ordered a halt pending rectification to underground mines owned by the parent and five underground mines in Shanxi held by the listed unit after the September 16 accident.

China Coal shares have dropped 29% since the accident, compared with a 10% slide in the Hang Seng Index. The suspensions, ordered as power plants prepared to start replenishing coal stockpiles for winter demand for electricity won’t have a material impact on output or the company operations.

There had been 512 coal mine accidents in China as of June, 21% fewer than in the same period in 2010. Shanxi produced 740 million tons of coal last year trailing only the 782 million tons mined by Inner Mongolia, China top producing province.

(Sourced from Bloomberg)

Coal shortage hits power generation at NTPC Ramagundam unit

It is reported that power generation at NTPC Ramagundam super thermal power project located in Andhra Pradesh has been adversely impacted due to shortage of coal supply from Singareni Collieries Company Ltd.

SCCL miners are agitating in support for separate statehood of Telangana. Of the 2,600-MW of installed capacity at Ramagundam, NTPC plant is able to generate about 1,520 MW from the six units of 2,100 MW. It has shut down the seventh unit of 500 MW from Saturday due to coal shortage as it does not make sense to generate power with low plant load factor.

A spokesperson of NTPC told Business Line that "In spite of making alterative arrangements from Mahanadi Coalfields, South Eastern Coalfields and from mines in Chhattisgarh and Orissa and making other alternative arrangements from Coal India Ltd, we are able to generate only about 1,520 MW today."

As against average requirement of about 36,000 tonnes per day, NTPC now has supplies for about 18,000 tonnes.

The power generated from NTPC Ramagundam is supplied as per the allocation made to various southern States. Accordingly Andhra Pradesh gets about 31.5%, Tamil Nadu 25%, Karnataka 19%, Kerala 15%, Puducherry and Goa about 5% respectively.

(Sourced from www.thehindubusinessline.com)

Composition of Metso nomination board


13 times viewed. Tuesday, 04 Oct 2011Metso Annual General Meeting decided on March 30, 2011 to establish a Nomination Board to prepare proposals on members of the Board of Directors and their remuneration for the next Annual General Meeting which is planned to be held on March 29, 2012. The representatives of the four largest shareholders registered in Metso shareholder register as of October 1, 2011 are elected to the Nomination Board along with the Chairman of the Board of Directors Jukka Viinanen as an expert member.

According to the shareholders register, Metso Corporation four largest shareholders on October 1, 2011 were:
1. Solidium Oy
2. Cevian Capital II Master Fund LP
3. Ilmarinen Mutual Pension Insurance Company
4. Varma Mutual Pension Insurance Company
These shareholders have named the following persons as their representatives for Metso's Nomination Board:
1. Kari Järvinen, Managing Director
2. Lars Förberg, Managing Partner
3. Harri Sailas, President and CEO
4. Matti Vuoria, Managing Director, President and CEO
Mr Kari Järvinen has been elected the Chairman of the Nomination Board.


Monday, September 26, 2011

Redar Iron identifies DSO iron ore targets at Jackson and Boondine projects



It is reported that Radar Iron is about to ramp up news flow across several of the company's projects.

The latest positive news is that iron ore targets have been identified from an aeromagnetic survey which includes an additional 20 kilometres of magnetic responses.

The survey was over the Die Hardy, Boondine and Jackson projects which are located in the Southern Cross district of Western Australia which comprised 8,300 flight line kilometres.

The outcome is that several areas of direct shipping ore mineralisation have been defined at the Jackson and Boondine projects.

At Die Hardy which is the initial main magnetite target for Radar the data highlighted new untested magnetic units to the north and north west of the existing drilling indicating a combined strike length of 4 kilometres.

Magnetic modeling for all the recently acquired data is currently underway, with ground reconnaissance of potential anomalies kicking off this month, and following drilling approval, drill testing is expected to commence in early 2012 at the high priority targets.

In total Radar holds around 1200 square kilometres of tenements in the Yilgarn Iron Ore Province, with 120 kilometres of banded iron formations which are largely unexplored for iron ore.

Mr Jon Lea MD of Radar told Proactive Investors today that a 3000 metre reverse circulation drilling program will kick off next month at the Johnston Range project.

The project is significant for Radar with around 20 direct shipping ore targets having already been identified, which Lea said have the potential to host 2Mt to 5Mt hematite deposits in pods.

Johnston Range hosts 40 linear kilometres of banded iron formation, and has the potential to deliver a JORC Resource in the short term.

Queensland Galilee Basin could generate 6000 jobs



It is reported that a new coalmine in central Queensland Galilee Basin could generate 6000 jobs during construction and 1500 places during the mine life.

More details on Waratah Coal USD 8.3 billion Galilee Coal project became available recently when the company released its environmental impact statement. The project involves a series of new thermal coalmines near Alpha, west of Emerald a 468 kilometer railway from the mine to the coast and a port at Abbot Point, north of Bowen.

Mr Rachel Nolan acting Development Minister said ''If the Galilee Coal project proceeds, it could generate around 6000 jobs during construction and 1500 jobs during the operational life of the mine which is expected to exceed 25 years.”

Mr Keith Davies Co-ordinator-general said community concerns about the impact of the railway would be looked at along with formal submissions when considering the project.

Premier Ms Anna Bligh said the project presented another big leap forward for Queensland's economy, provided the company met all environmental impact requirements. She said ''The Galilee Basin is a very rich coal seam. If it can be developed appropriately, then it means jobs, prosperity and growth, and a very bright future for our state.”

The project impact statement will be available for public comment until November 7. The proposed port at Abbot Point will be subject to a separate approval process.

(Sourced from www.brisbanetimes.com.au)

Zimbabwe deadline for foreign firms looms



It is reported that foreign companies operating in Zimbabwe had until Sunday to hand in plans to sell majority stakes to local blacks under a law that has alarmed investors who are uncertain how the rules will work.

The government order for the transfer of 51% ownership has been called the final phase of economic emancipation after controversial land reforms targeting white owned farms a decade ago. But analysts are skeptical.

Mr Anthony Hawkins a University of Zimbabwe economics professor said "There is no way the local and the government has the money to buy shares in the companies. Everybody knows that."

He said that the indigenization drive could hurt the economy in the same way as the land reforms which sparked an economic nose-dive after supporters of President Mr Robert Mugabe violently seized white-owned farms.

Mr Hawkins about polls expected next year said "My concern is that this is much more of a political policy and it will have an economic harm just like the land reforms. It looks like they are doing this for the elections."

He said that "This will reduce the amount of investment in the country as the new owners will not have the money to, for example, expand projects. The community does not have the money, as well as the workers and the government is broke."

The push is without the violence of the land seizures which Mr Mugabe said was a way to correct colonial-era wrongs, but there is mixed signals on how the law will be implemented.

Mr Saviour Kasukuwere Indigenization Minister has warned that non-compliant companies risk nationalization. But certain firms have arranged their own deals and deadlines ahead of Sunday cut-off date making the government appear flexible on how the law is implemented.

(Sourced from AFP)

Mongolia high plains herders warily eye coal truck road



Reuters reported that a lone cement ribbon bisecting hundreds of miles of shale and scrub on the high plains of Mongolia Gobi Desert may be a talisman or curse for nomadic herders that trace their lineage to the empire of Mr Ghengis Khan.

Carved into the Gobi by the Hong Kong listed Mongolian Mining Corporation the 147 mile and two lane roads is due to open next month, allowing the company to speed up cargoes of coal to China from its expanding Ukhaa Khudag mine.

The freshly paved highway is one of the first glimpses of a mining boom that will transform Mongolia fortunes. But many including President Mr Tsakhia Elbegdorj are worried that mining has already put the country fragile pastoral economy under strain and left a million nomads behind.

Mr Puntsag Tsagaan president senior adviser said "Hundreds of rivers, streams and lakes have disappeared because of deforestation, climate change and also partly because of irresponsible mining."

He said that "Our challenge is how to diversify our economy. I don't want my children and my grandchildren to live in a different country called Minegolia it has to be Mongolia. Therefore we have to manage the mineral wealth in a better way."

The road will remove a major logistical hurdle for MMC.

Mr Adilbish Gankhuyag MMC's chief financial officer said "We will start using it next month and it will have a total throughput capacity of about 18 million tonnes per annum this year our total production will be 7 million tonnes so we no longer have logistics and transportation problems."

Mr Shurka Baigalmaa MMC's onsite manager at Ukhaa Khudag said it is also a key part of the company commitment to protect the region's ecosystem which has been damaged by hundreds of overloaded coal trucks churning up grazing land.

MMC is also committed to using the parched region water supplies efficiently with Baigalmaa saying that 95% of water used at the mine washing plant would be recycled.

The open-cast mine is already 70 metres deep and will eventually descend 300 metres but she said the company would limit the impact by refilling exhausted seams using peat excavated from new mining areas further west.

(Sourced from Reuters)

Avonlea Minerals appoint Non Executive Chairman



Avonlea has appointed Mr David Macoboy as Non Executive Chairman effective immediately.

Mr Macoboy brings to the Board a wealth of experience across a range of industries especially in the areas of corporate strategy, finance, project evaluation and development, and management. Mr Macoboy has over 20 years in the resources sector joining Avonlea following roles at Board level with a range of successful ASX listed exploration and mining companies.

Mr David is currently Non-Executive Chairman of Vital Metals Limited, and has held previous Directorships with Ammtec Ltd, Ironclad Mining Limited, Grange Resources Limited, Territory Iron Limited and Consolidated Minerals Limited.

Mr Macoboy holds a Bachelor of Economics and a Bachelor of Commerce from the University of WA. David is a Fellow of the Australian Institute of Company Directors and a Certified Practicing Accountant.

Mr David Riekie Avonlea Managing Director said "We welcome Mr Macoboy as a valuable addition to the Avonlea Board. His extensive corporate and resources experience provides a complementary skill set to the existing Board. Mr Macoboy joins the Company at a pivotal time in the Company's growth as we continue to develop our portfolio of projects in Namibia, and will assist to drive our corporate agenda to realize the full potential of our asset base."

Mr Roger Steinepreis will as a consequence step down as Chairman, but will remain a Non-Executive Director of the Company. The Board thanks Roger for his significant contribution to the Company in his capacity as Chairman since listing on the ASX in 2007.

US coal units to retire as EPA tightens rules



(Sourced from Reuters)
Reuters has made a partial list of US coal plants that energy companies expect to retire in the coming years. Some units may be converted to burn alternative fuels or be replaced with natural gas fired generation.

OWNER UNIT SIZE STATE DATE TO SHUT
Exelon Cromby Units 1,2 345 PA 31-May-11
Exelon Eddystone Units 1,2 588 PA 31-May-11
AEP Phillip Sporn 450 WV 2011
TVA Shawnee Unit 10 124 KY 2011
Duke Cliffside 1-4 198 NC 2011
Duke Buck 3 and 4 113 NC 2011
AES Greenidge 156 NY c2011
AES Westover 128 NY c2011
TVA Widows Creek 1-2 282 AL Late 2011
TVA John Sevier Unit 1,2 352 TN 2012
Duke Edwardsport 160 IN 2012
Duke Dan River 1-3 276 NC 2012
GenOn Potomac River 482 VA Oct-12
Progress H.F. Lee 397 NC 2013
Black Hills W.N. Clark 42 CO By 2013
Progress Weatherspoon 172 NC 2013-2017
Progress Sutton 600 NC 2014
Duke WS Lee 370 SC 2014
Dominion Salem Harbor 738 MA 2014
Duke Wabash River 2-6 668 IN 2014
AEP Glen Lyn 335 VA 31-Dec-14
AEP Kammer 630 WV 31-Dec-14
AEP Kanawha River 400 WV 31-Dec-14
AEP Phillip Sporn 600 WV 31-Dec-14
AEP Picway Plant 100 OH 31-Dec-14
AEP Big Sandy 1,2 1078 KY 31-Dec-14
AEP Clinch River 3 235 VA 31-Dec-14
AEP Conesville 3 165 OH 31-Dec-14
AEP Muskingum River 1-4 840 OH 31-Dec-14
AEP Tanners Creek 1-3 495 IN 31-Dec-14
AEP Welsh 2 528 TX 31-Dec-14
Dominion North Branch 74 VA Late 2015
Duke Riverbend 4-7 454 NC 2015
Duke Buck 5-6 256 NC 2015
Dominion Yorktown 1-2 323 VA 2015
TVA Widows Creek 3-6 564 AL Late 2015
TVA Johnsonville 1-6 794 TN Late 2015
Dominion Chesapeake 1-4 595 VA 2015-2016
PPL's LG&E Cane Run 563 KY 2016
PPL's LG&E Tyrone 71 KY ---
PPL's LG&E Green River 163 KY 2016
TVA Johnsonville 7-10 692 TN Late 2017
Dominion State Line 515 IN By mid-2014
Progress Cape Fear 316 NC 2017
Xcel Cherokee 1-4 1069 CO By 2017
Xcel Arapahoe 3,4 156 CO By 2017
Xcel Valmont 186 CO By 2017
CPS Energy Deely 871 TX 2018
PGE Boardman 585 OR 2020
Centralia TransAlta 688 WA 2020
Centralia TransAtla 688 WA 2025
APS Four Corners 1-3 560 NM ---


22230

CIL maintains stand on bonus issue



Press Trust of India reported that Coal India stands firm on its decision of bonus payment to the workers despite their threat of a one-day strike on October 10.

Mr NC Jha Coal India Chairman said "There is no plan to review the bonus offer from us."

He said if the unions go ahead with the strike, the miner would lose 0.8 million tonne to 1 million tonne in coal production, while the revenue loss would be INR 120 crore.

Coal unions have said they'll go on a strike across mines including in Singareni Coal Companies, if their demand for a minimum INR 25,000 bonus is not accepted by the management. CIL on the other hand has offered INR 17,000 against INR 15,000 offered last year.

With the company registering a shortfall in production in August and September due to rains, the strike would make it difficult for the company to meet the projected production target of 452 million tonnes for the current fiscal.

Meanwhile, Mr Alok Perti Coal Secretary while addressing the seminar said there is need for simplification of the procedures in acquisition norms to help the PSUs in buying overseas energy assets.

He said that "Time is essence. In this aspect, private sector has an advantage over the PSUs to take quick decisions," he said.

CIL in the past has failed to act swiftly due to procedural hindrances and some of the overseas coal assets went to other bidders.

(Sourced from Press Trust of India)

Global Earth Energy announces closing date of coal properties



Global Earth Energy Inc announced that its partially owned Canadian company, Global Earth Natural Resources Inc which trades on the Frankfurt Stock Exchange under the symbol 2GN, 2GN: GR on the Bloomberg quote system, a co-owner along with Modern Coal, LLC of Global Earth Natural Resources LLC a Texas limited liability company, has set a closing date of mid September for its acquisition of the Samuel Coal properties in Knott County, Kentucky. Permitting has been received on all three of its initial locations and Global Earth Natural Resources, LLC expects to begin mining operations immediately after closing the acquisition.

Global Earth Energy, Inc Global Earth Natural Resources LLC and Modern Coal, LLC plan to expand the workforce needed for the Kentucky operations of Global Earth Natural Resources, LLC and have begun accepting resumes for various positions. The total need for new hires is expected to be approximately 100 people. Global Earth Natural Resources, LLC is looking for personnel experienced in tipple operations or related experience in the transport and loading of coal, shift supervisors, mechanics, bookkeepers and security and safety personnel.

Modern Coal, LLC and Global Earth Energy Inc wish to express their thanks to Congressman Hal Rogers, US Representative from Kentucky 5th Congressional district, for his support and encouragement as Global Earth Natural Resources, LLC completes its acquisition of the Kentucky coal properties helping bring new jobs to Knott County and his steadfast support of Kentucky's coal producers.

www.steelguru.com

Tuesday, September 20, 2011

Science City to establish mining investment JV



It is reported that Science City Development Public plans to establish a mining investment and development joint venture with Hainan Xinde Taisheng Investment Management and Shouyi Venture Capital.

The joint venture, Yintai Shengda Mining Investment Development, will have a registered capital of CNY 100 million of which CNY 51 million will be borne by Science City in return for a 51% stake.

Science City released its assets restructuring plan in July. It had planned to swap out its hotel assets for lead-zinc mining assets. The value of the target mining assets rose 14 fold in the past three years.

Shares of Science City had risen by their daily limits for two straight trading sessions from July 21. However, the stock then dropped continuously to CNY 7.5 at present.

(Sourced from Shanghai Securities News)

Norway and Finland challenge Sweden dominance in mining



It is reported that Sweden e leading Nordic country when it comes to mining industry.

Norway is expected to introduce a 15 year state program on mineral research which will cost SEK 1 billion according to Sveriges Radio. The Norwegian mining industry has for a long time been in the shadow of the oil industry but the current high metal prices have changed the Norwegian government's view on this.

The Finnish government has made the same thing. In May it started a 5 year state financed mining research program which costs SEK 500 million.

(Sourced from www.steelguru.com)

Beacon Hill suitor withdraws approach



Reuters reported that bid target Beacon Hill Resources a potential offer was withdrawn after for the coking coal producer confirmed it undervalued the group and its assets.

Beacon Hill said it continued to make good progress with the development of Minas Moatize a producing coal mine in the Tete Province of Northern Mozambique.

The company said in a statement that "Whilst equity markets have been volatile, coal prices have remained very strong and demand for security of supply of coking coal is at an all-time high."

On August 26, Beacon Hill snubbed an early stage takeover proposal of 142 million pound from a third party saying it undervalued the company.

Beacon has two primary assets the Minas Moatize coal mine in Tete, Mozambique and Tasmania Magnesite NL in Tasmania, Australia.

(Sourced from Reuters)

Mr Lindsay favors coal mine expansion as mergers booms



Teck Resources Ltd the world second largest exporter of coal used in steelmaking focused on expanding its Canadian operations without acquisitions, even as the volume of transactions in the industry rises to the highest level in at least 12 years.

Mr Don Lindsay CEO of Teck Resources said "For us, it makes far more sense to build than to buy. It may be boring from an external point of view that there aren't lots of transactions, but it works."

Teck plans to step up the pace of extraction from the more than 5.5 billion tonnes of coal deposits it holds in Alberta and British Columbia. Mr Lindsay said building capacity in western Canada is a cheaper way to add production than buying companies such as US miner Walter Energy Inc or Australia Macarthur Coal Ltd.

According to Bloomberg data there have been 56 pending or completed takeover bids for coal producers so far this year with a combined value of about USD 21.3 billion. They include Peabody Energy Corp and ArcelorMittal agreement last month to acquire Macarthur for AUD 3.64 billion. There were 70 deals worth about USD 16.4 billion in 2010.

Walter which also mines metallurgical coal in Canada rose 21% in New York trading on September 7 after the London based Times reported Anglo American Plc may consider a bid. Walter investor Audley Capital Advisors LLP said in July that company should explore a sale. Mr Lindsay said Teck isn't interested.

He said that "Two-thirds of the business is underground, long-wall o
perations. You've seen in their performance, the squeezes that they've had. Why would I want to get into that business?"

Read More

China Shenhua Energy commercial coal output up 20pct in Aug



China Knowledge reported that China Shenhua Energy Co Ltd the country largest coal producer produced 27.3 million tonnes of commercial coal in August reflecting a YoY increase by 20.3%.

The Shanghai and Hong Kong listed firm commercial output swelled 26.2%YoY to 23.1 million tonnes. Coal sales amounted to 32 million tonnes up by 26.5%YoY.

Last month, the coal company sold 306 million tonnes of coal, 21.9% more than in August 2010. Of the total sales, 500,000 tons were exported plunging 44%YoY. In addition, China Shenhua Energy said its electricity output surged 34.6%YoY to 18,100 gigawatt hours in June and the firm power sales soared 34.6%YoY to 16,800 GWh in the month.

The Chinese coal producer reaped CNY 21.87 billion in net profit attributable
to shareholders in the first half of this year up by 16.1%YoY and its operating revenue for the first half surged 40.5%YoY to CNY 100.69 billion.
(Sourced from China Knowledge)

Rio Tinto is holding an investor seminar in London and New York on September 20th 2011



1. Rio Tinto's growth program is well underway with work progressing on $ 27 billion of major capital projects, and a $35 billion pipeline of high quality, unapproved projects currently in the advanced-study phase.

2. Growth projects are well balanced between Brownfield expansion of existing assets such as iron ore in the Pilbara and newer, world class quality projects including coal in Mozambique and copper gold in Mongolia.

3. Rio Tinto's order books are full and commodity prices remain robust. However, customer sentiment is now more cautious and physical markets are softer than they were six months ago, reflecting concerns over the health of the OECD economies and persistent volatility in financial markets.

4. Rio Tinto's estimated net debt as at August 31st was $ 7.6 billion, a reduction of $ 1 billion since June 30. This has been achieved despite the accelerated share buyback program and continued investment in growth.

5. More than $ 4 billion of Rio Tinto's $ 7 billion share buy back program has now been completed.

Mr Tom Albanese CEO of Rio Tinto said that "We've been saying for quite some time that we expected to see patterns of increased price volatility amidst turbulent financial markets and that scenario is playing out. Our order books are full and pricing is strong, but it is noticeable that markets are somewhat weaker than they were six months ago. We are realistic and well positioned for any number of scenarios our high quality growth program is in full swing to capture the expected increases in longer-term demand, and our balance sheet is very strong and well able to withstand any near term decline. Our long term view of demand growth is unchanged. As the metal hungry developing economies grow, demand for copper, aluminium and iron ore will double over 15 to 20 years. But challenges on the supply side are limiting the speed of new supply to market. Project finance is tight because of the current market jitters. Permitting delays, labour and equipment shortages, and technically challenging ore bodies are all contributing factors. With Rio Tinto's exceptional growth projects in a range of countries and commodities, coupled with our leadership in new technologies, we are in an advantageous position."

Mr Guy Elliott CFO of Rio Tinto said that "Our balance sheet is robust, monthly cash flow generation remains high and we are able to access debt markets at competitive rates, as we demonstrated just last week with an attractively-priced bond issue. Our prudent balance sheet and single A credit rating are highly beneficial, particularly in challenging markets. This approach means we have been able to pursue our strategy of targeted acquisitions and shareholder returns without interruption, successfully completing the Riversdale acquisition in August."

Read More

EastCoal gets access to new west block at Verticalnaya mine



A Canadian based company with coal assets in Ukraine, EastCoal Inc has announced that recent work at the main Verticalnaya anthracite mine has established that access to the new West Block in the west extension of seam H8 can be readily established.

The company said while access from the former mine into that area had been sealed off and was believed to be flooded, investigation of a ventilation drift has established that the access way is free of water.

Records indicate that the West Block of the H8 seam initially extends for approximately 2.5 kilometres along strike and three kilometers down dip. The Seam thickness is recorded in the region of 0.6 meters, which is less than for the other areas now being developed but can be mined with modern western equipment.

The company said that the potential of the West Block is significant in that, if developed, it could bring forward commercial production from the H8 seam by as much as 12 months and add to the overall production of the mine.

The company said an independent NI 43-101 compliant technical report is being commissioned to evaluate the coal resources in the West Block.

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