Sinosteel to import Indian iron ore after government cuts tax

Sinosteel Corp, China`s second-biggest iron-ore trader, said it would resume buying low-grade iron ore from India after the government cut tax on exports of the commodity because of protests from local mining companies and Chinese steelmakers.

Exports of iron ore fines with less than 62% Fe will be taxed 50 Rs/t (US$1.2/t), finance minister Palaniappan Chidambaram sid on Thursday.

He retained the 300 Rs/t (US$7/t) tax on all other grades of the commodity.

"Of course we will start buying again as more than half of our purchases are low-grade ore," said Hong Sen Wang, managing director of Sinosteel`s Indian unit, by telephone from New Delhi.

The company imports as much as 10 Mt/y from India.

Sinosteel was among at least 10 Chinese steelmakers to halt imports from the South Asian nation after the goverment on February 28 announced a flat US$7/t tax on exports of all grades of ore to ensure supplies are enough to meet local demand.

Indian`s iron ore sales fell by a third to 7 Mt in March and China`s steel mills said they would buy more Australian and Brazilian ore.

India was the third-biggest supplier to China last year, providing about a quarter of 326 Mt of imports by the world`s biggest steel-producing nation.

Indian shipped 89 Mt in the year ended March 31, 2006, of which 27 Mt were fines with a ferrous content of less than 62%. China relies on imports for more than half its iron-ore needs.

Five straight years of increases, fueled by Chinese demand, have tripled global iron-ore prices.

Source : www.mining-journal.com

Battle for ironstone range

The fledgling Mid-West iron-ore industry was dealt a considerable blow late last year when the Environmental Protection Authority recommended setting aside vast tracts of the region as an A-class reserve, exempt from exploration and mining activity.

The State Government then called for an emergency review of the Mid-West iron-ore industry. That inquiry is expected to be concluded in June.

Conservation Council director Chris Tallentire said the council wanted "a representative sample of the banded ironstone formation ranges'' excluded from future mining, "before they are lost forever to mining pits and waste dumps''.

He said the council would hold a forum on Thursday to "promote restrictions on Mid-West iron-ore mining''.

Ian Loftus, public and policy affairs manager for the Association of Mining and Exploration Companies, said Mr Tallentire's statement was scaremongering.

"It could be that they're trying to pre-empt the findings of the Government's inquiry,'' he said. "But the rhetoric is ridiculous. They're shooting from the hip.

"This will be an ongoing issue and what we need is some constructive consultation, so conservation and mining can co-exist, not scaremongering.''

Source : www.news.com.au

Amur Reg, British company sign agreement on iron ore project

An agreement between the Amur Region and a British mining company was signed on Saturday on cooperation to implement an iron ore mining project, a source at the regional administration told Itar-Tass.

The agreement envisages investments of more than 31.9 billion roubles in construction of a mining complex at the Garinskoye iron ore field to produce 10.5 million tonnes of ore a year. It is planned to be put into operation in January 2013.

The project is of great social importance, regional administration officials say.

There will be 1,800 new jobs with a wage fund of more than 420 million roubles a year.

The British company in December 2006 won the right to work on the field, the largest in the east of the country. It won the contest, in which seven contenders participated. There are almost 400 million tonnes of prospected ore reserves, and there may be even 500-600 million tonnes. About half of the deposits contain up to 50 percent of iron, and the iron content is rather high in the rest part.

Source : www.itar-tass.com

Australian Stocks Advance, Led by Rio Tinto and BHP Billiton

Australian stocks rose, extending a record high. Rio Tinto Group led gains among miners after prices of metals including copper and nickel advanced and after Citigroup Inc. said BHP Billiton Ltd. could afford a $100 billion takeover bid for its smaller rival.

``Mining companies will eventually get re-rated by the market if metals prices manage to stay close to these levels because it will demonstrate that their earnings are more sustainable than the market has been giving them credit for,'' said Adnan Kucukalic, a Sydney-based strategist at Credit Suisse Group.

The S&P/ASX 200 Index added 30.80, or 0.5 percent, to 6335.70 at the close in Sydney. About the same number of stocks rose as fell.

Rio Tinto, the world's third-largest mining company, surged A$4.53, or 5.2 percent, to a record A$91.38. BHP, the biggest, gained 96 cents, or 3.1 percent, to A$31.56.

A measure of six metals traded on the London Metal Exchange, including copper and zinc, climbed 2.1 percent on May 4. Copper rose 0.8 percent, while Nickel jumped 3.6 percent to a record high.

BHP would be able to pay off the debt needed to take over Rio Tinto in five to six years, Citigroup analyst Clarke Wilkins said in a May 4 note. The Melbourne-based company could cut $500 million in costs by buying London-based Rio Tinto and combining their Australian iron ore and coal mines.

A five-year rally in commodity prices spurred more than $123 billion acquisitions last year in the mining industry. Prices could stay high for years, prompting buyout firms to consider bids for mining companies, Merrill Lynch & Co. said last week.

The S&P/ASX 200 Index's futures contract for June added 0.2 percent to 63358. The broader All Ordinaries Index gained 0.5 percent to 6303.50.

The following shares also rose or fell. The stock symbols are in brackets after the company names.

Alinta Ltd. (AAN AU), Australia's biggest energy transmission company, rose 10 cents, or 0.7 percent, to A$15.25. Macquarie Bank Ltd., Australia's largest securities firm, made a new takeover bid to trump an agreed A$7.4 billion ($6.1 billion) bid by Babcock & Brown Ltd. and Singapore Power Ltd. The proposal from Macquarie is ``confidential and conditional'' and Alinta is seeking further information on the terms, Alinta said.

Incitec Pivot Ltd. (IPL AU), Australia's largest fertilizer maker, surged A$2.63, or 5 percent, to A$55.38. The company said first-half profit jumped more than fivefold to A$57.2 million ($47 million) from A$10.1 million a year earlier. Incitec's full-year earnings will be boosted by 12 months contribution from its recently acquired Southern Cross Fertilizers Pty. and the 60 percent increase in ammonia-based fertilizer prices this year. The company expects cost savings this year to be more than double its original estimate.

Fairfax Media Ltd. (FXJ AU), which owns the Sydney Morning Herald, slipped 14 cents, or 2.7 percent, to A$5.13. Rupert Murdoch's News Corp. sold its shares in Fairfax, six months after buying the stake to thwart any attempt to take over its nearest Australian rival. News Corp. sold its 7.5 percent stake for A$5.07 a share, Fairfax said.

Fortescue Metals Group Ltd. (FMG AU), a mining company that is building an iron-ore mine and port in Western Australia state, jumped A$1.89, or 7.9 percent, to A$25.93. The stock gained for a second day after it was included in Morgan Stanley Capital International Barra's stock indexes with effect from May 31. More than $3 trillion in funds are benchmarked worldwide to MSCI's measures.

Healthzone Ltd. (HZL AU), which produces health and beauty products, soared 9 cents, or 26 percent, to 43 cents. The company said it agreed to buy a healthfood store in Sydney for A$315,000 plus shares.

Qantas Airways Ltd. (QAN AU), Australia's biggest airline, was halted from trading. Macquarie Bank Ltd. and its partners said they're considering a new offer for Qantas after applications to include a late acceptance for the current bid were rejected. The group may make a new cash bid at the same price of A$5.45-a-share, the bank said in a statement. Allco Finance Group Ltd. (AFG AU), a partner in the bid, dropped 55 cents, or 4.4 percent, to A$12.05.

Rinker Group Ltd. (RIN AU), the biggest supplier of cement blocks in the U.S., added 34 cents, or 1.8 percent, to A$19.23. Perpetual Ltd., the largest shareholder of Rinker, will accept Mexico-based Cemex SA's $14.2 billion takeover bid for the Australian building materials maker, removing a potential hurdle to the deal. Perpetual holds a 10.5 percent stake in Rinker.

Source : www.bloomberg.com

Peter Hambro Mining to join iron ore project in Russia's Far East

The London-based Peter Hambro Mining will help the administration of the Amur Region in Russia's Far East to develop a large iron ore deposit, the press secretary of the regional governor said Monday.

"The investment project will create about 2,000 jobs," the press secretary said.

Under an agreement signed by the parties, Peter Hambro Mining, which holds over 50 prospecting and mining licenses, with operations focused in Siberia, will draft a feasibility study and design documentation for the investment project worth more than 30 billion rubles ($1.2 billion) to develop the Garinsky iron ore field while the local administration will coordinate this effort, the press secretary said.

"The project stipulates the construction of a mining and metallurgical complex at the Garinsky deposit and the creation of the relevant transport, energy and social infrastructure," the press secretary said.

The new complex, with a designed capacity of at least 10.5 million metric tons of iron ore a year, is expected to be commissioned by January 1, 2013, the press secretary said.

Source : en.rian.ru

Bucyrus profits up; firm finalizes DBT deal

Mining equipment manufacturer Bucyrus International Inc. said first-quarter earnings increased on higher sales of original equipment and higher prices that offset rising commodity costs.

Bucyrus also said Friday that it completed the purchase of DBT GmbH, a German manufacturer of underground equipment, for $710 million in cash and $21 million in Bucyrus stock. DBT has eight facilities around the world with approximately 3,200 employees and generates about $1 billion in annual revenue.

Bucyrus International reported net income for the first quarter of $17.9 million, or 57 cents per share, an increase of 23 percent compared with $14.5 million, or 47 cents per share, for the same period the year before. Net sales for the South Milwaukee-based company rose 14.9 percent to $190.4 million from $165.7 million.

Bucyrus (NASDAQ: BUCY) said sales of original equipment jumped 46.6 percent to $78.4 million in the quarter. The increase, Bucyrus said, was driven by the ongoing global demand for mining equipment, reflecting the strength of the coal, copper, oil sands and iron ore markets, as well as industrialization in developing countries.

Profits were aided by higher selling prices, which more than offset the rising price of steel and other raw materials.

Source : www.bizjournals.com

Baffinland Announces Receipt of a Positive NIRB Screen Decision Regarding its Proposed Bulk Sample Program

Baffinland Iron Mines Corporation (TSX: BIM - News; "Baffinland" or the "Company") today announces that the Nunavut Impact Review Board ("NIRB") has completed its screening of the Company's proposal to undertake a Bulk Sample Program ("Program"). NIRB has approved the Program to be processed without further review on a determination of no potential for significant ecosystem or socio-economic effects. The approval to proceed contains several conditions that the Company has interpreted as reasonable.

"The extraction and shipment of the proposed 250,000 tonnes of iron ore to be consumed by steel mills primarily in Europe, is a key step in Baffinland's strategy towards the development of a mining operation at our 100%-owned Mary River property, located in Nunavut Territory, Canada," states Gordon McCreary, President and CEO of Baffinland. "NIRB approval to proceed with the licensing of this Program is a major milestone". With NIRB approval for the Program received, Baffinland will continue to work with regulators towards the issuance of the various permits and licenses required.

Under this Program, Baffinland intends to ship the bulk sample to steel mills in the summer of 2008. This will involve the shipment of required equipment and supplies to Mary River in the summer of 2007. It is expected that iron ore will be mined from two small open pits developed at Deposit No. 1. The mined material will be blended to provide lump and fines that are expected to be representative of the proposed sale products from the first ten to fifteen years of commercial production from Deposit No. 1. The iron ore will be transported over an approximate 100 kilometre upgraded road to Milne Inlet from where it will be loaded and shipped to market over five voyages. The Program provides the opportunity to further validate the high quality geologic and metallurgical characteristics of the direct-shipping Mary River iron ore through its use at several operating steel mills.

Certain information included in this press release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "believe", "plan", "scheduled", "intend", "estimate", "forecast", "predict", "potential", "continue", "anticipate" or other similar expressions concerning matters that are not historical facts. Without limitation, statements about the Company's planned bulk sample program and related statements are forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of mineral resource estimates, iron ore prices, the timing and amount of future exploration expenditures, the availability of necessary financing and materials, the receipt of necessary regulatory approvals and licenses, and assumptions with respect to environmental risks, weather conditions and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Without limitation, in stating that the Company plans to complete a bulk sample program in 2008, and related statements, the Company has assumed, among other things, that iron ore prices will not change materially from the prices used in its current financial forecasts and that it will obtain in a timely manner the financing and regulatory approvals and other licenses and authorizations required to enable the exploration, development and mining activities necessary in order to complete such activities.

Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what management currently expects. These factors include risks inherent in the exploration for and development of mineral deposits, risks relating to changes in iron ore prices and changes in the worldwide demand for, and supply of, iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River Property including access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing and capitalization risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all, environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

Source : biz.yahoo.com

Cotton & Western Mining, Inc. Issues Equipment Purchase Order

Cotton & Western Mining, Inc. (PINKSHEETS: CWRN) -- Robert L. Cotton, President & C.E.O. of Cotton & Western Mining, Inc., announced today that the company has issued its first purchase order for a total of $1,057,900.00 to Valley Equipment Company, Inc. of Salem, Oregon for mining equipment as part of its ramping up for iron mineral production at one of its selected mineral leases through the "Cotton & Quantum Minerals Venture." All U.S. purchased equipment will ship out of the Port of Seattle, Washington.

Valley Equipment Company, Inc. is a major mining and aggregate equipment dealer and custom manufacturer of specialized mining equipment. http://www.valleyequip.com

The company will be issuing additional purchase orders for sets of crushing, screening and separation equipment together with hauling trailers to be exported to its Asian mineral leases; it is anticipated that more than one mining operation will be started up in order to meet iron ore production and shipping requirements of its joint venture partner, Quantum International of Houston, Texas.

CWRN is currently negotiating for two (2) new iron mineral leases to offset the maximum shipping capacity of its initial mining site. Utilizing three (3) ports, the joint venture could expand its shipping capacity to near 500,000 dry metric tons per month, which is now a new shipping target of the venture.

It is expected that the venture will be in production within the six (6) month time frame that was set upon the signing of the joint venture agreement with Quantum International.

Under the terms and conditions of the joint venture agreement, CWRN shall be responsible for all mining operations, and selection of iron mineral leases to exploit, while Quantum International shall be responsible for all funding and finished product contract sales.

For more information on Cotton & Western Mining, Inc. please visit the company website at: http://www.cottonwestern.com.