Tata Steel to acquire pellet maker BRPL for Rs900 crore
Tata Steel on Friday said it has signed an agreement to acquire Odisha-based iron ore pellet manufacturer BRPL for Rs900 crore in cash. Brahmani River Pellets Ltd (BRPL), which had a turnover of Rs452 crore in 2015-16, owns a 4 million tons per annum capacity pellet plant in Jajpur and a 4.7 million tons iron ore beneficiation plant in Bardil, Odisha.
A 220-km slurry pipeline connects the pellet plant with the beneficiation plant. It manufacturers iron ore pellets for iron and steel industry.
“The acquisition provides an upstream integration opportunity to Tata Steel to meet its metallic requirements and improving the feed mix for its Kalinganagar steel plant and Jamshedpur steel plant,” the company said in a statement.
The deal, which is subject to regulatory approvals, is expected to close in four months. It also needs approval from the Reserve Bank of India (RBI) and other regulatory bodies to restructure BRPL’s balance sheet, including shareholders loan and advances.
“The acquisition of the company is being made at an enterprise value of Rs 900 crore plus closing adjustment,” it said.
BRPL was incorporated on 24 August 2006 and is engaged in the business of acquisition and beneficiation of iron ore and the manufacture and sale of iron ore pellets.
Pellets are used as agglomerates in the iron making process. The company was originally established by the Moorgate Industries Group (MIG), which continues to hold a significant stake in BRPL through its shareholding in AMTC.
MIG was formed on demerger from the Stemcor Group of Companies as part of a UK court-approved restructuring in 2015.
“Tata Steel Ltd announces that it has executed definitive agreements to acquire 100% equity shares of BRPL from Arya Mining and Trading Corp Pvt Ltd (AMTC) and other companies in the MIG,” the statement said.
The acquisition will be funded from internal cash flows of Tata Steel.
State-run NTPC today said its total installed capacity increased to 48,028 MW following the commissioning of 800 MW unit at Kudgi in Karnataka.
“With commissioning of 800 MW unit at Kudgi Super Thermal Power Station in Karnataka, the total installed capacity of the largest Power Utility of the country NTPC has risen to 48,028 MW,” the company said in a statement.
This is the first 800 MW unit commissioned by NTPC, it said.
The company has 19 coal-based, 7 gas-based, 9 solar Image result for Photovoltaic (PV), one hydro and 9 subsidiaries/joint venture power stations.
NTPC has a capacity of over 23,000 MW under implementation at 23 locations across the country, including 4300 MW being undertaken by joint venture and subsidiary companies.
The PSU power giant is playing a major role in meeting the power needs of the country and contributing to its economic and social development, contributing nearly 24 per cent of country’s power generation.
NTPC wants to be the world’s leading power company in a bid to energise India’s growth and plans to become 130 GW company by 2032.
http://www.thehindubusinessline.com/companies/ntpc-total-installed-capacity-rises-to-48028-mw/article9444376.ece
NTPC commissions Unit- I of 800 MW of Kudgi STTP
Becomes first 800 MW unit commissioned by NTPC
NTPC announced that the Unit-1 of 800 MW of Kudgi Super Thermal Power Project of NTPC has been commissioned on 25 December 2016. This is the first 800 MW unit commissioned by NTPC.
With this the total installed capacity of NTPC on standalone basis has become 41062 MW and that of NTPC group has become 48028 MW.
NTPC signs 160 MW PPA with Nepal Electricity Authority
State-owned NTPC today said that its wholly-owned arm NTPC Vidyut Vyapar Nigam has signed power purchase pact with Nepal Electricity Authority to supply 160 MW power for January-May 2017.
"NTPC Vidyut Vyapar Nigam Limited (NVVN)...Has signed Power Purchase Agreement(PPA) with Nepal Electricity Authority (NEA) for supply of up to 160 MW power for the period January 2017 to May 2017 through Muzaffarpur-Dhalkebar transmission line," the company said in a statement.
The agreement was signed by Arun Kumar Garg, CEO, NVVN and Kul Man Ghising Managing Director, NEA, the statement said.
VVN is the only government company in the power sector engaged in the business of power trading.
http://www.business-standard.com/article/international/ntpc-signs-160-mw-ppa-with-nepal-electricity-authority-116122600765_1.html
Coal price boom evades Coal India
Coal India Ltd’s (CIL’s) price realisation per tonne, unlike that of its global peers, fell in April-October to Rs 1,344 because of weak demand and the outlook for the next two quarters does not look good.
Last year it was Rs 1,430 in the same period. CIL had raised its prices in May this year. However, the company’s average price realisation per tonne declined, cancelling the benefits of the price hike. In case power demand remains subdued in the next quarter, the average realisation may remain weak.
Globally thermal coal prices have been up 95 per cent this year.
On an average, coal prices were raised by 6.29 per cent a tonne and CIL had said it would earn additional revenue of Rs 3,234 crore during May-March this financial year.
CIL increased the prices of the lower-grade coal (G8-G13) by 13.60-18.03 per cent while reducing the prices of the higher-grade ones. Lower grades are used extensively by power-generating stations and account for more than 80 per cent of the coal production by CIL.
Company executives say the sharp decline in higher-grade coal prices; weak demand, especially in the power sector, its key customer; and lower price realisations in the e-auctions are the primary factors behind the bleak picture in the April-October period.
Looking at the demand situation, a further increase looks difficult, according to sources. The government decides whether to increase the price.
According to analysts, the demand for power will not accelerate unless industrial activity picks up. State discoms’ demand has a direct correlation with the index of industrial production.
“As a result of low power demand, the uptake by power companies has been lower than expected. This situation might prevail for the coming two quarters,” said Debasish Mishra, partner, Deloitte Touche Tohmatsu India LLP.
However, CIL executives said the global surge in coal prices would lead to greater demand for domestic coal, a situation CIL could exploit.
While the e-auction volume increased to 39.52 million tonnes (mt) during the April-October period, the average price per tonne declined by 27 per cent at Rs 1,463 a tonne.
“The auction prices are higher than the notified one. However, prices depend on the market conditions as well,” a CIL executive said.
Industry analysts have a different take on the matter. They say the fall in the average price realisation is primarily on account of the government’s drive to contain grade slippage, which is supplying inferior coal at the prices of better ones, and raise the correct invoice for the grade of coal supplied.
Coal consumers and analysts have been blaming CIL for grade slippage, something Anil Swarup, as coal secretary, had taken up.
“According to our estimates, grade slippages have been controlled, for which CIL could raise the invoice in terms of the correct grade of coal. This has affected the net earnings and hence the average realisation from coal sales fell,” an analyst said.
In July-September, CIL posted its worst quarterly results since its listing, with a 77 per cent fall in net profit at Rs 600.17 crore and a decline of eight per cent in net sales at Rs 15,645.05 crore.
http://www.business-standard.com/article/companies/coal-price-boom-evades-coal-india-116122600545_1.html
China's ICBC signs debt-for-equity swaps with state coal, steel firms
Industrial and Commercial Bank of China (ICBC) has signed three debt-for-equity swaps with Shanxi province's highly indebted state-owned coal and steel firms, the bank said late on Monday.
China's biggest lender ICBC has agreed to invest in Taiyuan Iron & Steel (Group), Datong Coal Mine Group and Yangquan Coal Industry (Group) to swap their existing debt and reduce their corporate leverage, the bank said.
Heavy industries such as coal and steel have languished as China relies increasingly on higher-end technology and consumption for economic growth and seeks to shut underperforming mines and plants.
China's northern province of Shanxi is its biggest coal producing region. Shanxi produced 944.1 million tonnes of coal last year, amounting to 25.6 percent of the national total.
The total value of three debt-for-equity swaps was 30 billion yuan ($4.3 billion), which will cut the three firms' leverage by as much as 10 percent, state-run local media Shanxi Youth Finance said in a report released on its social media account.
ICBC didn't confirm that total when contacted by Reuters.
http://in.reuters.com/article/china-icbc-debt-idINL4N1EL2IE
China steel, iron ore slip on slow demand but headed for best year ever
Steel and iron ore futures in China headed south on Friday amid weak winter demand, but both commodities were well on track to post their biggest annual gains on record after this year’s searing rally.
Strong futures helped lift spot iron ore prices by more than 70 percent this year, putting the steelmaking raw material on course for its best year since at least 2008.
But prices were weaker on Friday as steel demand softened, with construction activities slowing down with winter.
Authorities in the city of Tangshan in China’s top steelmaking province of Hebei have lifted production restrictions on steel mills, a Shanghai-based trader said, as skies have cleared after thick smog was suspended in the air for several days this week.
That could lift steel output at a time when traders’ appetite has waned.
After a restocking binge that lifted prices of both steel and iron ore, “steel traders have become reluctant to taking more cargoes because end-user demand is not that strong and they also have enough inventory,” said the Shanghai trader.
The most-active rebar on the Shanghai Futures Exchange was down 3.4 percent at 3,004 yuan ($432) a ton by 0308 GMT.
The construction steel product touched a 32-month peak last week and has gained 68 percent so far this year, spurred by Beijing’s campaign to slim its bloated steel sector and efforts to stimulate its economy.
Iron ore on the Dalian Commodity Exchange slipped 1.9 percent to 548 yuan a ton. But it has surged 170 percent this year having touched a nearly three-year high last week.
Spot iron ore touched a two-year high above $80 a ton at the same time that futures rallied, bringing this year’s annual gain to 75 percent so far.
As futures retreated this week, iron ore for delivery to China’s Qingdao port slid 3.8 percent to $76.15 a ton on Thursday, according to Metal Bulletin. The annual gain follows a three-year decline and is on course to be the largest since Metal Bulletin began assessing prices in 2008.
While this year’s spectacular rebound in iron ore prices has been a godsend for the world’s biggest miners, it has not gone high enough for smaller, less-efficient producers that still have pits shuttered and equipment idle.
Demand for iron ore may remain mostly weak toward the Lunar New Year in late January, said the Shanghai trader.
Warm Regards
Anurag Singal
Sr Manager –Business Development
Essel Mining & Industries Ltd
14th Floor, Industry House
10,Camac Street –Kol-71
Ph: 033-30518415,9088026252
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