1. Economic Times: Olympics limit China iron ore, coal output in July
Mining falls from podium status as the Olympics temporarily trump mining as China’s priority. July’s output for key steelmaking resources was significantly lower than usual: a 22% drop for iron ore and an 8% drop in raw coal. Crude steel production also fell 4% as plants near Beijing lowered output.
2. Reuters UK: Russia antitrust body demands Mechel cut coal price
Mechel handed down “Deal or No Deal” punishment options. Russia’s antitrust body tells Mechel to significantly cut coking coal prices to receive a “less than average fine.” The agency found the miner guilty of unfair pricing practices due to its dominant market position. Beginning in 2009, Mechel is also required to conduct business through long-term contracts.
3. The Australian: Vale growth dependent on iron ore as nickel weak
An iron floor prevents a rock-bottom drop. As nickel continues to lag, Vale depends more heavily on iron ore production. The Brazilian miner experienced second-quarter earnings driven by iron ore’s strong demand and earlier price increases. Nickel, the company’s second largest revenue stream behind iron ore, considerably dropped its percentage within the company’s total revenue.
4. Hindustan Times: Tata Steel to build $5 billion Vietnam plant
Tata Steel signs new $5 billion joint venture investment agreement to build an integrated steel complex in Vietnam. The Indian steelmaker will own a 65% stake.
5. Bloomberg.com: OZ Minerals, Fortescue lead rebound in mining stocks
A rebound of Australian mining stocks was led by zinc miner OZ Minerals and Fortescue Metals Group. Australian stock exchange sees biggest commodity rally since June. Interest in the companies came as investors speculated that recent raw-materials price falls have been excessive.
6. Reuters: U.S. coal assets attracting overseas buzz
U.S. coal attracts foreign suitors. Coal’s appeal is fueled by higher prices and short supply. In particular, Russian and Indian steelmakers are looking to become active in the coal market. U.S. companies take notice; some welcome the extra attention and flirt back.
7. Daily Times: Body formed to identify iron ore
Pakistan moves forward with its goal for increased steel production. The National Steel Policy created subcommittees to focus on aspects within the steelmaking process such as the identification of iron ore and development of infrastructure. It is estimated that Pakistan has 947.5 million tonnes of iron ore reserves.
8. Bloomberg.com: Exxaro shares gain on prospect of ‘significantly’ better half
When Exxaro speaks, investors listen…perhaps it’s a new form of mind control? Recovering from a slight stock drop in late July, the coal producer’s prices increased rapidly after the company announced profits are expected to improve ‘significantly’ in the second half.
9. Reuters Africa: S. African mining firms, union clash on safety bill
A proposed Mine Health and Safety Amendment Bill divides mining companies and workers’ union. The key area of dispute regards criminal liability and penalties for mine deaths. Workers want punishments targeted at 10% of the company’s annual turnover, while mine companies argue for considerably less.
10. Bloomberg.com: Leighton to sell AU $700 million shares to expand
Australian construction giant looks to expand contract mining in India, Indonesia, and Australia. Leighton, which currently receives a quarter of sales for operating mines, expects strong international mining infrastructure demand. The company plans to raise AU $700 million through a share sale.
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