Trump sends iron ore price to 2-year high
The import price of 62% Fe content ore at the port of Tianjin jumped 4.5% to $74.20 per dry metric tonne on Thursday as Donald Trump's victory in the US presidential elections add fuel to the fire of iron ore's almost a month of unbroken gains.
According to data from The Steel Index it's the highest level for the Chinese benchmark price since November 7, 2014 with gains since the eve of the election now topping 11%. Year to date the price of the steelmaking raw material is up 72% after doubling in value from near-decade lows in December last year.
The rally comes on the back of Trump's general support for the extractive industries and his pledge during his acceptance speech for fiscal spending geared towards rebuilding the country's infrastructure.
The Trump administration is likely introduce a spending program of $500 billion when it takes office next year with the president elect promising as much as $1 trillion over ten years to rebuild roads, bridges, airports, hospitals and schools.
Stocks of the world's top producers have all rallied post the Trump triumph with North America's number one iron ore miner Cliffs Natural Resources up a whopping 17% on Wednesday and gaining a further 4.3% in pre-market trading in New York on Thursday.
The world's largest iron ore miner, Brazil's Vale, jump looked set for another jump in value on Thursday to add to its 13.6% gain this week. Anglo-Australian giants BHP Billiton and Rio Tinto made the most of the rally in iron ore, coal and base metals with both stocks adding 12% in value in London since the election. World number four Fortescue Metals Group shares rose 10% in Sydney while South Africa's Kumba Iron Ore soared 15% in Johannesburg.
Metallurgical coal's rise this year has been even more dramatic than that of iron ore and trading at $307.20 a tonne on Tuesday, the steelmaking ingredient is up 22% just over the last month.
According to data provided by the Steel Index premium Australia hard coking coal prices are up more than fourfold since hitting multi-year lows around $70 a tonne in November last year.
The coal rally was also spurred by supply issues after Beijing’s decision to limit coal mines' operating days to 276 or fewer a year from 330 before as it seeks to restructure the industry. Safety closures and weather related supply curbs in China and Australia only added fuel to the fire.
In 2011 floods in key export region in Queensland saw the coking coal price touch an all-time high $335 a tonne. Iron ore's high point was a month later at $191.90 a tonne.
http://www.mining.com/iron-ore-price-trump-rally-tops-11/
Charges framed against Darda in coal case
A Delhi court on Thursday framed charges of criminal conspiracy, criminal breach of trust and cheating against former Rajya Sabha MP and chairman of Lokmat Media, Vijay Darda, former Coal Secretary H.C. Gupta, and five others in a coal block allocation scam case.
The court also framed charges against two senior bureaucrats, K.S. Kropha and K.C. Samria, allottee company JLD Yavatmal Energy Pvt Ltd, its Director Manoj Kumar Jayaswal, and Mr Darda’s son Devendra Darda after they pleaded not guilty.
The CBI had in 2014 filed a plea with the court to close the case but Mr. Parashar had rejected the closure report and asked the investigating agency to further probe the charges.
Case reopened
The court had then said Mr Darda had misrepresented the facts in letters to then Prime Minister Manmohan Singh to get the Fatehpur (East) coal block in Chhattisgarh allotted to JLD Yavatmal Energy Pvt Ltd.
Mr. Singh was then holding the additional charge of the Ministry.
A prima facie offence of cheating was committed by private parties in furtherance of conspiracy hatched between them and the public servants, the court had then observed. JLD Yavatmal Energy Pvt Ltd was allotted the coal block by the Screening Committee.
The CBI FIR says that JLD Yavatmal had wrongfully concealed previous allocation of four coal blocks to its group companies in 1999-2005.
In another order, Mr. Parashar dismissed a petition by Yavatmal Energy to summon former Coal Minister Shibu Soren and erstwhile Minister of State for Coal Dasari Narayana Rao as accused in the case.
The Judge also imposed a cost of Rs. one lakh on the petitioner.
Quotes book
Citing excerpts from a book titled Crusader or Conspirator? Coalgate and others Truths written by then Coal Secretary P.C. Parekeh, counsel for the company had alleged that the former bureaucrat had apprised Mr Soren and Mr Rao that the existing system for allocation of coal blocks was discriminatory but both then ministers had overruled his concerns.
The role of the said two persons (Soren and Rao) was clear from the book written by Parekh. Hence, viewed from this angle, it was clear that Shibu Soren and Dasari Narayana Rao are the persons who were involved...and on the basis of the excerpts, the two should have been summoned as accused, counsel for the pettioner said.
http://www.thehindu.com/news/national/charges-framed-against-darda-in-coal-case/article9330475.ece
Australia approves Adani coal mine project
Adani’s plan to build one of the world’s largest coal mines in Australia received a boost on Thursday by a last-minute amendment to Queensland’s new water laws that would exempt the Indian mining giant’s controversy-hit 21.7 billion dollar project from any public objection process.
The Queensland government has granted Adani’s Carmichael mine project in the Galilee Basin an 11th-hour exemption to new water laws that could have seen the project subjected to further legal challenges. The government has introduced laws requiring Queensland mining projects to obtain a water licence, in an effort to reduce the impact on ground water.
However, the Annastacia Palaszczuk government on Wednesday added an amendment to the laws that will allow the Adani mine project, which has already faced significant legal action, to avoid court challenges to its water licence. Under the amendment, projects that have already finalised proceedings with the Land Court will be able to obtain a licence from the government without being subjected to challenges from the public, the Sydney Morning Herald reported.
State environment minister Steven Miles had moved the amendment which would mean that companies that had already undergone scrutiny through an environmental impact statement (EIS) and the Land Court would still require a water licence but would not have to go through the public objection process. “This will be achieved by allowing associated water licence applications to be exempt from public notification if the mining project has already been through an EIS process and a Land Court objections hearing in which objectors tested the groundwater modelling undertaken by the project proponent with expert evidence of their own,” Miles said.
“That particular project has been through two very significant Land Court cases and so what we’ve said is if they can demonstrate that they have met the requirements of the water licence and all of those elements had been tested in previous Land Court hearings, then this water licence stage would not be appealable in the Land Court,” Miles said. “It would still be subject to potential judicial review, but not a full Land Court challenge,” he added.
In response to the latest move, Adani Australia welcomed the state government’s support for recognising that the company has already passed all scientific and legal examinations to ensure rigorous measures are in place to manage water impacts at its Carmichael coal mine. “The amendment recognises the significant work Adani has already done to manage water impacts and avoids unintended and unnecessary duplication and further delay for the 21 billion dollar projects involving a mine and infrastructure including a rail link and port developments,” Adani said in a statement.
Warm Regards
Anurag Singal
Sr Manager –Business Development
Essel Mining & Industries Ltd
14th Floor, Industry House
10,Camac Street –Kol-71
Ph: 033-30518415
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