Coal India signs fuel supply deals with 27 power companies
Coal India Ltd has entered into fuel supply pacts with 27 power units, including Adani's Mundra Power plant in Gujarat, according to reports.
Reports stated that this move came even as the Prime Minister's Office (PMO) is slated to convene a meeting to iron out issues in the pact, mainly the penalty clause.
Other power units with whom the coal PSU has signed FSAs include Lanco Anpara Power, Reliance Power's Rosa Power Project and CESC, says report.
There are reports that government had issued a presidential directive to CIL in April to sign FSAs with the power producers assuring them of at least 80 per cent of the committed coal delivery.
Sesa Goa investors vote on Sterlite Inds merger
The shareholders of the iron ore mining firm cast their vote on the proposal to merge their firm with Vedanta Resources flagship Sterlite Industries and its various subsidiaries, according to reports.
Reports stated that the results of the vote on the merger is being watched as it will create the world's seventh largest diversified metals and mining conglomerate.
The result will be known on June 25, says report.
There are reports that atleast 75% of shareholders need to approve the merger for it to become effective.
In Focus Stories
Hindustan Zinc Annual Report analysis
Hindustan Zinc Ltd (HZL) in its FY12 annual report highlights the expansion in its product making capacities, the accretion in reserves and its initiative towards green energy. In FY12, HZL managed to commission its 0.1mtpa lead smelter, 350tpa silver refinery and ramped up its mining capacity at Sindesar Khurd to 2mtpa. However during the year, grade of zinc metal in concentrate declined sharply from 13.09% to 11.98% at the Rampura Agucha mine (accounts for 88% of total mined metal). With the commissioning of the Phase II wind power projects, it has become one of India’s largest green energy producers.
Highlights of the decade
The company in the annual report has highlighted its major accomplishments in operational capacities over the last decade. Below is the list of its major accomplishments:
Reserves and resources base more than doubled to 332.3mn tons
Ore production capacity has increased by 3 times to 10.25mtpa
Zinc and lead metal production capacity has gone up by 5 times to 1.064mtpa and silver production capacity has gone up by 7 times to 518tpa.
Its flagship Rampura Agucha mine underwent several phases of expansion from 1.35mtpa to 6.15mtpa. It is the largest zinc mine in the world based on mined metal production.
It built a new mine at Sindesar Khurd, which has a current capacity of 2mtpa with reserves and resources of 81.4mn tons.
All major projects commissioned in FY12
HZL managed to commission most of its new capacities during the year. The company commissioned the 0.1mtpa lead smelter at Dariba, raising the total lead smelting capacity to 0.19mtpa. This was achieved along with the 350tpa silver refinery at Pant Nagar in Uttarakhand. The company is using its zinc refinery at Chanderiya and Dariba for providing feed to the silver refinery. It also managed to ramp up the production at its Sindesar Khurd mine to 2mtpa by the end of the year. HZL commissioned 102MW of wind power generation capacity, taking its total wind energy capacity to 274MW. To achieve its goal of converting operations at Rampura Agucha from open pit to underground mining, the company has commenced underground mine development work at Rampura Agucha mine and also at its greenfield Kayar mine.
Tata Sponge Iron, Tinplate rally after Tata Steel open offer
Shares of Tata Sponge Iron and Tinplate surged after Tata Steel made open offer to the shareholders of the two companies. Tata Steel plans to hike its stake in Tata Sponge to 51% from the present 39.74% and, in Tinplate, to 73.44% from the current 59.44% through the open offer.
Tata Steel is making an open offer for acquisition of up to 14,653,470 shares at a price of Rs. 60 a share from the shareholders of Tinplate Company of India Ltd forming 14% of the share capital.In the case of Tata Sponge, the offer will be for acquiring up to 1,734,040 shares at Rs. 375 per share constituting 11.26% of share capital.
Mining and quarrying production down 16.6% in April MoM
The index of mineral production of mining and quarrying sector in April 2012 was lower by 16.6% compared to that of the preceding month. The mineral sector has shown a negative growth of 3.1% during April 2012 as compared to that of the corresponding month of previous year.
The total value of mineral production (excluding atomic & minor minerals) in the country during April 2012 was Rs. 17084 crore. The contribution of petroleum (crude) was the highest at Rs. 5671 crore (33%). Next in the order of importance were: coal Rs. 4849 crore, iron ore Rs. 3593 crore, natural gas (utilized) Rs. 1330 crore, lignite Rs. 467 crore and limestone Rs. 309 crore. These six minerals together contributed about 95% of the total value of mineral production in April 2012.
Production level of important minerals in April 2012 were: coal 421 lakh tonnes, lignite 43 lakh tonnes, natural gas (utilized) 3555mn cu. m., petroleum (crude) 31 lakh tonnes, bauxite 1391 thousand tonnes, chromite 416 thousand tonnes, copper conc. 10 thousand tonnes, gold 119 kg., iron ore 142 lakh tonnes, lead conc. 15 thousand tonnes, manganese ore 170 thousand tonnes, zinc conc. 101 thousand tonnes, apatite & phosphorite 205 thousand tonnes, dolomite 390 thousand tonnes, limestone 220 lakh tonnes, magnesite 17 thousand tonnes and diamond 1483 carat. In April 2012 the output of bauxite increased by 10.4%, chromite 7.2. However the production of iron ore decreased by 2.2%, petroleum (crude) 2.3%, limestone 3.5%, natural gas (utilized) 5.2%, diamond 6.2%, magnesite 7.1%, dolomite 11.0%, lead conc. 12.2%, copper conc. 13.5%, zinc conc.13.7%, lignite 17.1%, apatite & phosphorite 19.7%, manganese ore 25.6%, gold 31.2% and coal 34.8.
Welspun Corp advances on new orders
Coal India to raise prices of select grades
Jindal says looking at alternative to Bolivia investment
Rio Tinto takes next steps in its iron ore development plans
Rio Tinto is taking the next steps in its phased investment programme by committing US$4.2bn (100% basis US$6.2bn) to develop its tier one iron ore business. The investment covers US$3.7bn (100% basis US$5.2bn) for expansion of the industry-leading Pilbara iron ore operations in Western Australia and US$501mn (100% basis US$1.0bn) for further infrastructure development at the Simandou iron ore project in Guinea.
Rio Tinto chief executive Tom Albanese said "We are directing investment to projects that will generate the most attractive returns for shareholders and are resilient under any probable macroeconomic scenario. Our superior Pilbara iron ore business has one of the highest margins in the industry, low capital intensity of investment and a strong track record of completing projects on time and budget.
Arch Coal idles three U.S. mines, cuts 750 jobs
Arch Coal, Inc has reportedly said that it will idle several mining operations in Appalachia, decreasing overall coal production by 3 million tons annually, in response to drops in demand for coal-generated electricty.
Arch Coal estimates that the cutback will save them $30 to $40 million in annual capital expenditures and cost 750 full-time employees their jobs, 10% of the company's workforce, says report.
Nucor closes $605 mn acquisition of Skyline
Nucor Corp has reportedly said it completed a $605 mn deal to buy Skyline Steel LLC, according to reports.
Reports stated that Parsippany, N.J.-based Skyline Steel will add to Nucor's earnings in the next full fiscal year of ownership.