US challenges China

US challenges China non compliance in WTO CRGO steel dispute

Mr Michael Froman US Trade Representative announced that the United States is requesting that China enter into consultations regarding China's claim that it has brought its duties on US exports of grain oriented flat-rolled electrical steel (GOES) into compliance with WTO rules. AK Steel Corporation, based in Ohio, and Allegheny Ludlum, based in Pennsylvania, manufacture GOES.

China's actions cut off more than USD 250 million in exports of this high tech steel product and in 2012 the United States won a dispute at the WTO that China broke WTO rules with its imposition of antidumping and countervailing duties on GOES. The United States continues to pursue this dispute to ensure that China follows through on its obligations under the ruling and does not further harm US exports and the American workers and firms that make them, by abusing trade remedies. This is the first time the United States has initiated a proceeding in the WTO to challenge a claim by China that it has complied in a WTO dispute.

Ambassador Froman said that "Supporting American jobs is our number one job. And to ensure that Americans see the full benefit of the rules and market access we have negotiated in our international trade agreements, the President put enforcement of America's rights in the global trading system on a par with opening markets for US Exports. The WTO found that China's duties are inconsistent with WTO rules. We were right, and China was wrong. Unfortunately, it appears that China has not corrected those inconsistencies. Today's action shows that when the United States steps up to the plate on trade enforcement, we will follow through."

(www.steelguru.com)

Read More

Rebar and billet market

Sluggish rebar and billet market takes toll of steel scrap purchase

Ironically winter seems to be freezing the scrap transactions this year. Traditionally winter has been a period of brisk scrap business followed by improved price levels owing to shortage and inventory buildup by Turkish mills before the winter holidays in Europe, USA and Russia.

However this year tide has ebbed prematurely with scrap levels stagnating around USD 397-400 per tonne, CFR, Turkey levels for over a week. Likewise offers at hiking the levels of A3 scrap from Russian and Eastern European countries have turned out to be cropper with no significant interest at USD 385-390 per tonne, CFR Turkey.

Main reason for this uncanny pattern has been dipping sentiments in long market with rebar and billet levels losing about USD 5-7 per per tonne during the last 10 days.

All this is happening amidst low inventory levels with Turkish mills and January booking still remaining unfulfilled. Amidst slow booking from UAE buyers as plenty of domestic rebar is available rebar levels have been booked at USD 586-587 per tonne, theoretical weight, recently booked. The gap between scrap and billet being squeezed and the export levels of rebar coming down mills are opting to buy billet from CIS sources rather than go for scrap purchase.

Despite slow demand for scrap some improvement is unavoidable during the next fortnight with shortage of scrap as well as billets owing to freezing of Black Sea ports during winter leading to scuttled supply.

Source – Strategic Research Institute
(www.steelguru.com)

Read More

Germany plans to revamp 84 power plants - BDEW

Energy and water industry association BDEW said that German utilities and private investors have plans to construct or modernize some 84 power stations.

The planned projects were equivalent to an installed power generation capacity of 42,000 MWs, the Berlin based group said in a statement issued on the first day of the Hanover industrial fair. It estimated that the projects, taken together, involved investments of more than EUR 60 billion (USD 79.25 billion).

BDEW also said that of the total 84, some 69 units (counting those above 20 MW) were fully or partially approved, being built or test-run. The remaining 15 were at the planning stage.

Of the total number counted by BDEW, 23 units were to be driven by offshore wind, 10 were pumped storage plants, 29 gas-fired and 17 coal fired generation plants.

BDEW, which represents some 1,800 companies active in supplying power, gas, water and heat, traditionally issues power station plans of its members around April.

The plans this year reflect over a year of debate on how to best replace Germany's nuclear power stations, which must be closed faster than planned in light of the nuclear disaster in Japan in March 2011.

BDEW's managing director Ms Hildegard Mueller said that the plans' realization mostly hinged on the German government clarifying the future power market design. If this was not done by 2015, especially the would-be investors in thermal power stations might get cold feet and withdraw.

Ms Mueller said that "The increased involvement in offshore wind and pumped storage is a positive signal that the industry is investing in the energy supply of the future.”

She added that "But this cannot hide the fact that there are obstacles not just for renewable power but also coal and gas-to-power projects.”

Source - Reuters

(www.steelguru.com)

Read More

SouthGobi announces extension date of sale of Tsagaan Tolgoi Deposit

SouthGobi Resources Lid announced that the expected closing date of the sale of the Tsagaan Tolgoi Deposit to Modun Resources Limited is extended to be on or before December 31st 2012.

On April 16th 2012 SouthGobi announced the Mineral Resource Authority of Mongolia requested suspension of certain of the Company's mining and exploration licenses The extension of the expected closing date with Modun allows additional time to resolve any issues. All other material terms of the deal remain unchanged.

Source From

Read More

Teck Resources announces dividend

Teck Resources Limited announced that it will pay an eligible dividend of USD 0.40 per share on its outstanding Class A common shares and Class B subordinate voting shares on July 3rd 2012, to shareholders of record at the close of business on June 15th 2012.

Read More

Read More

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)

Read More

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)

Read More

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)

Read More

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)

Read More

American Power receives approval for Phase II of exploration drilling program

American Power Corp announce the amendment of its prospecting permit to cover additional drill locations for Phase II of its exploration drilling program at the Pace Coal Project in Judith Basin County, Montana.

On July 29 2011, the Coal and Uranium Program of the Montana Department of Environmental Quality approved the Prospecting Permit No. X2011335, authorizing American Power to start Phase I of its exploration drilling program at the Pace Coal Project. The initial permit covered a total of 24 drill holes on 13 different locations and the amended permit covers an additional 16 drill holes on 9 different locations.

As of September 9, 2011, the Company had completed 5,750 feet of drilling on nine drill locations corresponding to Phase I of its coal exploration program. American Power expects Phase I to be completed imminently. The board of directors of the Company is very pleased with the results to date and has approved the initiation of Phase II of the drilling program as soon as Phase I is completed.

Mr Al Valencia President and CEO of American Power said "We are delighted to have received the approval from the Montana DEQ that covers Phase II of our drilling program. We are also pleased to inform our shareholders that preliminary findings to date are in line with our technical team expectations with seven out of nine drill targets encountering coal intervals. Drill cores will be shipped to Standard Laboratories, Inc in Casper, Wyoming for analysis according to ASTM standards. Initial sampling results are expected within two to three weeks."

American Power planned exploration drilling program consists of 61 drilling sites and will involve a total of 53,875 feet of drilling. The program aim is to place a significant portion of the coal holdings of the Pace Coal Project in the proven and probable reserve classification, with an ultimate goal of establishing sufficient resources to support a greater than 20 year operational mine life. American Power exploration program will provide information relative to coal seam thickness, depth of cover expected top and bottom conditions and coal quality.

Read More

Haranga Resources discovers significant iron ore at Selenge Project in Mongolia

Haranga Resources has unearthed broad widths of iron mineralization in all sixteen diamond drill holes completed at the Bayantsogt prospect within its Selenge Project in Mongolia.

The company is aiming to define an initial JORC Resource by the first quarter of 2012. Bayantsogt is the first of the four major targets to be drilled at Selenge.

Drilling at the Bayantsogt prospect has intersected at least five major iron lodes ranging in down hole width from 12 metres to 54 metres. Assay results have been received for seven holes. The mineralization remains open in all directions.

Highlights from within the banded magnetite skarn formations include
1. 26 metres at 27% iron (Fe) from 32 metres
2. 28 metres at 30% Fe from 3 metres
3. 29 metres at 24% Fe from 34 metres
Similar banded magnetite skarn deposits in the Selenge region, such as the nearby Eruu Gol mine have proven amenable to mining and low cost beneficiation.

The company Selenge iron ore project consists of five contiguous exploration licences covering almost 600 square kilometres of ground in the heart of Mongolia premier iron ore development region. Importantly, The Selenge project area has excellent access to the main trans-Mongolian rail line and nearby rail spurs.

The Selenge province includes the 304 million tonne deposit currently being mined at nearby Eruu Gol which produces about 2.5 million tonnes of magnetite concentrate per annum and ships the product via a newly constructed 70 kilometer rail spur connecting the mine to the main trans-Mongolian rail line.

Drilling with two rigs is continuing and the mineralization is still open in every direction including depth. The company has a third rig now drilling at other Selenge targets and is attempting to secure a further dedicated drill rig at Bayantsogt for the remainder of the drilling season.

Initial drilling has commenced at the Huiten Gol prospect. The company plans to commence drilling at the Dund Bulag prospect before the end of this month. Depending on these results, Haranga Resources may also decide to drill test at the nearby Undur Ukhaa prospect prior to year end.

Read More

Indian coal ministry seeks status report on captive blocks from firms

Having already issued a warning to coal block allottees that have failed to develop mines awarded to them in a timely fashion, the government has now asked these firms to furnish a status report on progress made on these delayed projects in the July to September quarter.

The Coal Ministry said "You are requested to send detailed information for the quarter ending September 2011 in respect of allocated coal/lignite blocks and associated end use projects along with the reasons for delays in implementation of the coal/lignite project to this office by September 30."

In May, the coal ministry took a decision to deallocate 14 coal blocks and one lignite block and issued warnings in respect to 29 coal and three lignite mine allottees asking the concerned companies to commence production in time.

The companies whose coal blocks were deallocated include NTPC, Andhra Pradesh Power Generation Corporation, Bhatia International, Shree Bhaidyanath Ayurved Bhavan, Jharkhand State Electricity Board, Damodar Valley Corporation and Gondawana Ispat Ltd among others.

(Sourced from Economic Times)

Read More

Environment group stages anti coal protest west of Melbourne

It is reported that a protestor who chained himself to a coal exploration drill rig at Bacchus Marsh west of Melbourne has come down after talking to police.

The group Switch off Coal is protesting against Mantle Mining exploration in the region. One of the members of the group used thumb-cuffs to attach himself to the drill rig on a roadside.

Mantle Mining started testing for brown coal in the area two weeks ago.

The group says the community has not been consulted and the agriculture industry will suffer if mining is allowed.

Protester Mr Shaun Murray chained himself to a drilling rig at one of the test sites. He said that "This is probably the most advanced coal project and as such, it represents the first attempt to build or undertake a new coal development in Victoria in 15 years."

Another protester, Mr Paul Connor says money should be invested in renewable energy, not coal. He said that "We need to be transitioning away from coal. Brown coal is the dirtiest kind of coal."

He added that "Mantle Mining is claiming that they can burn the brown coal slightly more efficiently, but this technology that they're planning to use is in no way compatible with a safe climate future for this planet."

Read More

Read More

Coal towns urged to consider renewable future

It is reported that a new USD 100,000 report has identified Muswellbrook and Singleton as future renewable energy hubs.

The Upper Hunter Diversification Report was commissioned by the six Upper Hunter councils, co funded by the State Government and is being released to Singleton councillors this week.

It attempts to signal where the Hunter jobs will come from over the next 25 years and as the coal boom subsides.

Singleton Council Ms Salena Avard said because of the skilled mine labour force in Muswellbrook and Singleton, the towns would be perfect for the production of renewable energy technologies.

She said "Singleton has a really fantastic set of skills that are associated both with the mining industry but professional services and all sorts of support industries."

She added that "I think there is an opportunity for us to have a look at where we can transfer those skills. Everyone recognizes that the mining industry is going to be here for some time yet but certainly life after mining is a consideration of this report."

(Sourced from www.abc.net.au)

Read More

MEC Resources Study points to significant shale gas potential in Advent onshore fields

MEC Resources has provided the following advice from its investee company Advent Energy Ltd regarding its permits in the onshore Bonaparte Basin, Western Australia.

Advent has now completed an initial study of shale gas potential in EP386 and RL1. The results indicate significant potential upside in prospective shale gas resources for Advent with estimated unrisked OGIP for EP 386 & RL 1 in the range from 19 TCF to 141 TCF. The thickness of the prospective shale gas play varies from 300m to over 1500m.

The study key findings are

Multiple petroleum targets are present in EP 386 & RL1:

1. Proven conventional gas charged sandstone reservoirs in nearshore marine area of the Milligans Formation

2. Unconventional gas-condensate shale plays in the shallow marine areas of Lower Milligans Formation

3. Unconventional tight gas sandstone and limestone reservoirs in the Langfield, Ningbing & Cockatoo groups below the Milligans Formation

4. Lower Milligans Formation shale is prospective for shale gas play with considerably large upside potential

5. Marine shale with moderate organic richness: TOC of up to 2.2% from samples in wells within or in close proximity of EP 386. Higher TOC could be present in the deeper offshore area north & east of EP 386

6. Source rocks are mature for gas and oil generation: Ro range 0.44% to 2.42% & Tmax range from 430 to 480

7. Limited geochemical data indicates source rocks at depth shallower than c 1400 meters are mature for gas/wet gas and oil generating windows, but over mature and in the dry gas generating window at depth below 1400 meters

8. The thickness of the prospective shale gas play is varied from 300 meters to over 1500 meters. This would provide significant upside in prospective shale gas resources

9. Unrisked OGIP for EP 386 & RL 1 could be in the range from c 19 TCF to 141 TCF.

Read More

Solar plans for coal fired power stations

It is reported that scientists and engineers have drawn up plans to convert Port Augusta two coal fired powered stations to solar thermal plants.

Non government organization Beyond Zero Emissions will meet South Australia Energy Minister Mr Michael O'Brien this week to discuss the two stations potential for conversion to solar.

Mr Mark Ooges from the organization says most equipment and staff would be kept under the plan. He said that "In a sense a solar thermal power plant is exactly the same as a thermal coal plant, the only difference is to produce the heat you use mirrors to concentrate the sun's energy rather than burning coal."

Mr Ooges says converting the power stations from coal to gas would be too costly. He said that "As Australia starts exporting a whole lot of LNG and gas prices are going to be linked to global prices so if we link our electricity generation to gas prices then we'll start getting the same volatility and uncertainty at the power switch that we're already getting at the petrol pump."

Alinta Playford B station at Port Augusta is expected to close under any carbon tax scheme.

(Sourced from www.abc.net.au)

Read More

Sekoko in talks with cornerstone investor

It is reported that Sekoko Resources an empowerment firm in joint venture with the JSE-listed Firestone Energy was in negotiations with a multinational power company regarding it becoming an investor in its Waterberg coal development.

Firestone announced to the JSE today that the negotiations involved very significant offtake agreement for coal over the life of Sekoko project which is the Waterberg Joint Venture Project.

Firestone Energy said “The negotiations are at an early stage and a further announcement will be made in due course.”

Firestone bought a 60% participation right in the Waterberg Joint Venture which is expected to produce first coal from the proposed Smitspan mine in 2012.

(Sourced from miningmx.com)

Read More

Bulk carrier runs aground in Rio de Janeiro port

Reuters reported that the RDB Ocean of Joy a Hong Kong flagged dry bulk carrier ran aground in the Port of Rio de Janeiro recently.

According to information from marinetraffic.com, a world wide ship tracking service, the ship, a 92,500 DWT post Panamax sized vessel was sailing from the Port of Tubarao northeast of Rio de Janeiro in Brazil Espirito Santo state.

Post Panamax ships are too large to pass through the Panama Canal locks.

The Navy said it did not know what was aboard the vessel.

Tubarao, Brazil largest port by volume moved is owned and operated by Rio de Janeiro based Vale SA, the world second largest mining company. Tubarao is Brazil main iron ore port as well as major steel, grains, coal and bulk commodities port. Vale said the ship is not theirs.

Vale press office said it was not the owner either of the cargo or of the vessel. Tugs and support vessels have the situation under control.

(Sourced from Reuters)

Read More

Baobab Resources update on its activities

Baobab Resources plc is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160 million tonne resource upgrade was announced on 30 August 2011.

Highlight

1. Resource drilling programs at the Massamba prospects of Ruoni North and South have been completed.

2. Analytical results from holes on the first two Ruoni North drill traverses have been returned. The traverses, spaced 170 meters apart defined a broad, heavily mineralized zone from surface dipping moderately to the southwest.

3. Significant drill intercepts up to 73 meters in length, report an average head grade of 41% Fe with saleable DTR concentrate grades averaging 58% Fe, 0.8% V2O5 and 13% TiO2 at a mass recovery of 46%.

4. All Chitongue Grande resource expansion drill samples have reached the ALS laboratory in Australia. Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling.

5. Drilling has commenced at the Tenge prospect.

Mr Ben James MD of Baobab said "Baobab is pleased to announce that it has completed the scheduled 2011 drilling campaigns required to define the targeted resource base of 300Mt at the Massamba Group. Drilling is continuing in the Tenge area where the Company believes there is an exceptional opportunity to add substantially to the resource inventory.

Read More

Read More

SinoCoking Coal and Coke Chemical announces results

SinoCoking Coal and Coke Chemical Industries Inc a vertically integrated coal and coke processor announced its financial results for the fourth quarter and fiscal year ended June 30 2011.

1. Fourth Quarter 2011 vs. 2010

I. Revenue increased by 126% to USD 24,661,738 from USD 10,886,577 mainly due to increased coke sales as well as the increased overall prices for all products.

II. Pre-tax income decreased to USD 15,892,450 as compared to USD 64,831,078.

III. Net income was USD 14,277,144 or USD 0.68 per diluted share as compared to a net income of USD 64,527,083 or USD 3.08 per diluted share.

2. Fiscal Year 2011 vs. 2010

I. Total revenue increased by 26% to USD 74,287,993 from USD 59,027,490 mainly due to increased coke and washed coal sales.

II. Revenue from the sale of coal products increased by 16% to approximately USD 35 million.

III. Revenue from the sale of raw coal products decreased 34% from a year earlier, in spite of the 17% increase in average selling price. As a result of the mining moratorium, we were unable to produce or secure sufficient raw coal from other producers to sell.

IV. Revenue from the sale of washed coal products increased 180% from a year earlier, as we sold some of our washed coal inventory to take advantage of the 40% increase in average selling prices resulting from the increase in raw coal price.

Read More

Read More