1. Bloomberg.com: China Iron Ore Surplus May Increase, Steel Group Says (Update 1)
China’s steelmakers concerned about the risk of over-importing iron ore. In the last four months, Chinese ore imports have exceeded actual demand by 27 million metric tons. The China Iron & Steel Association believes this year’s surplus could grow as large as 300 million tons this year.
2. The Associated Press: Grupo Mexico offers $2.9 billion for Asarco
Grupo Mining tops rival’s Sterlite Industries’ bid to regain control of Arizona-based Asarco LLC. Asarco has been under Chapter 11 bankruptcy protection since 2005. Grupo’s bid includes $1.3 billion in cash and $1.3 billion in escrow.
3. The West Australian: EPA gives conditional approval for Sinosteel’s Mid West project
Australia’s Environmental Protection Authority recommends Sinosteel Corp be given conditional approval for its Koolanooka-Blue Hills iron ore project, and blocks the group from accessing ore within the Mungada East pit. Sinosteel had planned to mine iron ore at both locations. The Chinese group took over Midwest Corporations for $1.4 billion last year.
4. Brisbane Times: Rains hit Fortescue’s iron ore mining
Fortescue Metals Groups report heavy rains slowed production in its first three quarters of the financial year production. The miner shipped 20 million tons during the period, below original estimates and expectations. Fortescue has set their target at 35 million tons for next year.
5. Associated Press: Foundation settles supply suit with ArcelorMittal
Foundation Coal Holdings, ArcelorMittal settle $40 million coal supply contract dispute. Foundation accused the steel producer of reneging on a deal to buy more than 200,000 tons of coking coal. A Foundation spokesperson said the settlement is not expected to affect current prices or the companies’ relationship.
6. Bloomberg.com: Harmony Increases Death Toll of Illegal Miners to 61 (Update 4)
Fire sweeps through a Harmony Gold Mining Co. disused mineshaft, kills at least 61 illegal miners. Illegal miners steal a tenth of South Africa’s gold production each year. As the rise of gold prices increases illegal activity, the government is increasing efforts to apprehend employers of recently arrested illegal miners, including members of organized crime.
7. The Australian: Miners lost 62pc of their value last year
A PricewaterhouseCoopers study reports the world’s top 40 miners’ market capitalization has dropped 62% last year. It was the first time in the study’s seven-year history that the miners experienced a net earnings decline. Fourteen of the top miners announced mine closures, production cuts, or put workers on care and maintenance.
8. The Associated Press: GM bankruptcy watched by Stillwater Mining
Stillwater Mining waits to see if its Stillwater-GM contracts will be honored in GM’s bankruptcy proceedings. The miner sells the carmaker platinum and palladium for use in catalytic converters.
9. Guardian: Nigeria seeks power from coal in mining revival
Nigeria working on projects to mine its untapped coal deposits to fuel power plants. The country is also working to stimulate its gold, iron ore, and bitumen industries. Mining accounts for 1% of Nigeria’s GDP.
10. Reuters: Peabody sees patchy H2 rebound in coking coal demand
Miner anticipates a slow recovery for coking coal, does not see a significant price catalyst. Peabody Energy, a U.S. based coal miner, believes the demand for coal will recovery intermittently in the second half of 2009 and will be led by Asian customers.
