MMR - DAILY- 21st April 2015.indd

Tu e s d ay 2 1 , A p r i l 2015
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
 3rd round of coal mine auction
likely in May
 JSW Steel's FY15 crude steel
production up 4% at 12.63 mt
Energy Market
Event Review
 Posco, SAIL propose to set up steel
plant, says govt
 500 tonne titanium sponge plant
comes up in Kerala
 NMDC targets Rs 13,500 cr turnover for
current fiscal
2
Tuesday 21, April 2015
Daily
MMR Landed Prices
London Metal Exchange : Monday 20, April 2015
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6081.00
6000.00
6002.00
6006.00
6007.00
5985.75
-79.0
3,41,275 MMR LP
4,09,290
3-mth
6082.00
6005.00
6010.00
6000.00
6000.00
5980.00
-72.0
4675 14-D MA
4,07,144
PP (HCL)
3,88,044
Average
10-days - 6018.70
20-days - 6051
30-days - 5962.90
Tin High Grade
Spot
14765.00
15005.00
15010.00
14800.00
14800.00
14503.00
245.0
9,655
--
--
3-mth
14760.00
15050.00
15100.00
14849.00
14850.00
14550.00
340.0
0
--
--
--
--
Average
10-days - 16062.50
20-days - 16567.30
30-days - 16882.30
--
Lead
Spot
2042.00
2036.00
2036.50
2023.00
2023.50
2011.00
-5.5
2,00,200 MMR LP
1,43,332
3-mth
2049.00
2040.50
2041.00
2028.00
2029.00
2019.00
-8.0
-4575 14-D MA
1,38,410
PP (HZL)
1,52,200
Average
10-days - 1978.70
20-days - 1900.70
30-days - 1858.30
Zinc Special High Grade
Spot
2226.00
2221.00
2222.00
2189.00
2190.00
2170.00
-4.0
4,92,575 MMR LP
1,60,961
3-mth
2237.00
2226.00
2226.50
2195.00
2196.00
2178.00
-10.5
-2975 14-D MA
1,57,550
PP (HZL)
1,63,900
Average
10-days - 2189.30
20-days - 2129.70
30-days - 2086.30
Aluminium
Spot
1846.50
1858.00
1858.50
1844.00
1845.00
1829.00
12.0
38,78,375 MMR LP
1,48,113
3-mth
1830.50
1828.50
1829.00
1823.00
1824.00
1810.00
-1.5
1825 14-D MA
1,43,312
Average
10-days - 1803.20
20-days - 1789.50
30-days - 1780.30
PP (Nalco)
1,46,900
Aluminium Alloy
Spot
1810.00
1770.00
1780.00
NA
NA
NA
-30.0
24,940
3-mth
1825.00
1785.00
1795.00
NA
NA
NA
-30.0
0
Average
10-days - 1792.50
20-days - 1766.50
30-days - 1768.70
Nickel
Spot
12730.00
12365.00
12370.00
12649.00
12650.00
12751.00
-360.0
4,33,734
--
--
3-mth
12780.00
12400.00
12425.00
12699.00
12700.00
12800.00
-355.0
-18
--
--
--
-02-Apr
11-Mar
Average
10-days - 12571
20-days - 12960.50
30-days - 13266.80
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Copper
Aluminium
Minor Metals ($/LB)
Antimony
99.65%
9,100
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
9.00
Tantalite
30% Ta2O5
81.00
Titanium Ferro-vana
Con. Ti02
550.00
24.90
Silicon Zinc
Lead
2,050
20-Apr
20-Apr
Week ended Avg of Steel Prices: 18/04/2015 (Incl. Excise duty)
Sponge Iron
Pig Iron
Alum. Alloy :
Mandi
25,900 HMS
31,100 CRP(LSLP)
Mumbai Mkt rates in kgs :
Mumbai
Kolkata
28,700
29,500
31,000
ADC 12 138
Delhi
Chennai
Bhiwandi
29,500
27,700
MS Ingots
39,450
29,300
AlSi 9 Cu3 141.5
LM6
146.5
Indicative Domestic Market Rates (Rs./kg)
Mumbai
20-Apr
Prev
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
20-Apr
Comex Copper (cents/lb)
Prev
Chennai
20-Apr
Prev
Apr'15
- May'15
- Jun'15
-
-463.0
-464.0
416.0
-
418.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
161.0
182.0
133.0
1,225.0
960.0
161.0
181.0
134.0
1,260.0
960.0
157.0
186.0
130.0
1,240.0
945.0
157.0
186.0
130.0
1,255.0
955.0
438.0
407.0
439.0
410.0
---
---
153.0
-
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-315.0
318.0
323.0
129.0
-316.0
318.0
323.0
129.0
401.0
--137.0
403.0
--137.0
-
153.0
-
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Rate
273.55
273.25
273.30
Change
-1.8
-1.5
-1.4
Kanpur
39,050
Durgapur
35,450
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
20-Apr
27,100
37,500
1,196.5
16.09
1,193.5
15.88
Prev
26,900
37,300
1,203.4
16.36
1,198.0
16.27
Forex: April 20, 2015 (Rs/Unit Currency)
- Buy
- Sell
- Buy
USD
62.97
62.88
EURO
67.55
GBP
93.90
93.79
SGD
46.71
----AUD
48.89
YEN
0.5291
0.5282
SFR
65.71
Sell
67.47
46.64
48.83
65.60
Customs Notified Rates: April 01, 2015 [Rs.(Imp/Exp)]: US$ 63.00/62.00;Pound Sterling 94.20/92.10;Euro 68.20/66.50
Tuesday 21, April 2015
Daily
Asian markets are trading higher due to the
corporate earnings performance which created
release of optimistic corporate earnings which
uproar in the Wall Street. Also, concerns over
led to positive Wall Street performance. Also,
Greece defaulting on debts provided further
the move from China’s Central bank to cut the
support to the currency.
reserve requirements provided further strength
However, apprehension from the investors
with respect to interest rate hike after a recent
to the Asian markets.
The US stocks rallied on Monday, posting
string of soft economic data which doubted
their biggest advance in three weeks, as better-
the optimism on the country's recovery capped
than-expected
sharp gains. US Dollar Index made an intraday
earnings
from
companies
helped deliver a dollop of confidence to globalequity markets after a rout in stocks on Friday.
high of 98.31 and closed at 98.16 on Monday.
The Indian Rupee depreciated by 0.9 percent
The S&P 500 SPX, +0.92% closed 19.22 points,
yesterday as the country's trade deficit jumped
or 0.9%, higher at 2,100.40, with the technology
to a four-month high mainly due to a slump
sector leading broad-based gains.
in exports widened. Also, fear over the impact
The Dow Jones Industrial Average DJIA,
of retrospective taxation affected the Indian
+1.17% jumped 208.63 points, or 1.2%, to
markets thereby exerting pressure on the
18,034.93, with 24 of its 30 components finishing
currency. Also, high demand for the greenback
in positive territory. IBM Corp, Microsoft Corp
from
and Apple Inc. led the gains.
companies further acted as a negative factor.
oil
marketing
and
defense-related
The Nasdaq Composite COMP, +1.27% ended
However, sharp losses were capped by
the session up 62.79 points, or 1.3%, to 4,994.60.
selling of dollars by the state-owned banks on
Colin Cieszynski, chief market strategist at
behalf of the central bank. The currency made
CMC Markets, said Monday’s action was likely
an intraday low of 63.15 and closed at 63.13 on
an unwinding of the Friday selloff.
Monday. India's Balance of Trade for the month
“Earnings reports so far are coming in
above expectations, but investors are watching
the impact of the stronger dollar closely this
quarter,” Cieszynski said.
of March declined to $11.79B as compared to a
fall of $6.8B in February.
Meanwhile, the European Central Bank is
confident that euro zone growth will become
“Whenever there are big shifts in currency or
more robust and that inflation will return to its
commodity markets, it takes time to play out. As
medium-term target "without undue delay,"
corporations had currency hedges in place, we
ECB President Mario Draghi said.
did not see much impact in the fourth quarter,”
Writing in the central bank's 2014 annual
he said. “Now it is all about how bad the impact
report, Draghi said that he could "envisage with
was during the first quarter,” he noted.
confidence that the weak and uneven recovery
He also said stock markets are likely to trade
experienced in 2014 will turn into a more
sideways in a tight range for months, effectively
robust, sustainable upturn – and that inflation
correcting over a long time.
will return without undue delay to the ECB's
The US Dollar Index strengthened by 0.5
percent yesterday after the release of robust
objective of below, but close to, 2 percent over
the medium term".
3
4
Tuesday 21, April 2015
Daily
The annual report also looked at the
USD/INR - 20/04/15
potential impact of the conflict between Russia
62.25
62.35
62.45
62.55
62.65
62.75
62.85
62.95
and Ukraine.
Greece
ordered
state
entities
from
municipalities to a fund meant for future
generations to park idle cash at the central bank
USD/INR Overnight VAR
Greece has been tapping into public cash
Data releases today
reserves in temporary transactions.
The latest demand shows how extreme
17:00
16:00
15:00
14:00
13:00
12:00
11:00
With IMF loan repayments due next month,
10:00
9:00
in a scramble on Monday to pay its bills.
0.3537
Forecast
Previous
EUR German ZEW Econ.Senti.
56.0
54.8
EUR ZEW Economic Sentiment
63.7
62.4
the financial constraints on Greek Prime
Source : Mecklai Financial
Minister Alexis Tsipras have become as he tries
bailout funds. Public sector entities in Greece
to convince foreign creditors to extend new
were ordered to transfer idle reserves to the
financial aid.
central bank to help with a cash squeeze.
The European Central Bank's vice president,
Currency Market
Vitor Constancio, said on Monday that Greece
The dollar rose broadly on Monday, with the
would not necessarily have to leave the euro
euro sliding more than half a percent against the
if it defaults on its debt. Still, ECB officials are
U.S currency, on growing concern that Greece
concerned about the country's looming 1
may default on debts.
billion-euro bill due to the IMF in May.
The euro was last off 0.70 percent against
The dollar also gained against the Japanese
the dollar at $1.0730, weighed down by the
yen and the British pound, rising 0.30 percent
European Central Bank's bond-buying program
against each.
and the risk Greece could leave the single
The Australian dollar fell against the U.S.
currency within months.
dollar after the country's top central banker said
Athens is in negotiations with its euro zone
the currency, which has lost 12 percent in the
partners and the International Monetary Fund
last six months, is likely to fall further.
over reforms required to unlock remaining
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.40
USD / INR
-
ATM Options (put/call)
0.15
The U.S. dollar index was last up 0.50 percent.
Forward Rates v/s INR (Export/ Import)
April
May
June
September
December
March
63.07/ 08
63.05/ 06
63.18/ 20
63.57/ 59
63.99/ 02
65.19/ 22
66.34/ 37
67.41/ 44
-
-
-
0.52/0.52
0.69/0.69
0.85/0.87
1.26/1.31
1.55/1.65
1.79/1.96
EUR / USD
1.0727
67.66/ 67
67.64/ 65
67.78/ 80
68.23/ 24
68.71/ 74
70.10/ 14
71.49/ 52
72.78/ 80
0.14
USD / JPY(100)
119.40
52.82/ 83
52.79/ 81
52.92/ 93
53.26/ 28
53.63/ 66
54.73/ 76
55.82/ 85
56.83/ 87
0.69
GBP / USD
1.4885
93.89/ 90
93.85/ 87
94.05/ 08
94.62/ 65
95.20/ 26
96.93/ 98
98.61/ 66
100.19/ 23
-0.73
USD / CHF
0.9569
65.91/ 92
65.88/ 89
66.02/ 04
66.47/ 49
67.05/ 08
68.62/ 63
70.15/ 21
71.55/ 62
3.06
AUD / USD
0.7701
48.57/ 58
48.55/ 56
48.63/ 64
48.84/ 85
49.08/ 11
49.77/ 79
50.42/ 44
51.09/ 10
Source : Mecklai Financial
Tuesday 21, April 2015
Daily
The dollar slumped last week, continuing a run
of weakness after a year-long rally.
On the MCX, gold prices rose by 0.17 percent
to close at Rs.27012/10 gms.
"Since the dollar was on the back foot, you
Spot silver prices declined by around 2
may be seeing a repositioning where some
percent on Monday to close at $15.9/oz. The
investors have decided that at these new levels
fall in silver prices is in tandem with declining
it may make sense to be long the U.S. dollar,"
gold prices and strengthening dollar. Besides,
said Charles St-Arnaud, senior economist and
weakness in copper prices also exerted
strategist at Nomura Securities.
downside pressure.
On the MCX, silver prices declined by 1.05
Precious Metals
percent to close at Rs.36074/kg.
Gold remained below the key $1,200 level
Another focus will be US economic data
on Tuesday after overnight losses, as a rally in
and a Federal Reserve policy meeting later this
global equities and a firmer dollar dented the
month for clues on when the US central bank
metal's appeal as a safe haven.
could start raising interest rates.
Spot gold was little changed at $1,195.80 an
Russia's gold reserves rose to 39.8 million troy
ounce at 0319 GMT after losing 0.7 per cent on
ounces as of April 1 from 38.8 million ounces a
Monday. "Precious markets declined, as market
month earlier, the central bank said on Monday.
participants pared back safe-haven exposure in
Bullion investors were also watching physical
gold," said ANZ analyst Victor Thianpiriya.
demand in top consumer India, which on Tuesday
"Risk appetite improved, with traders moving
towards US and European equities."
celebrates the Akshaya Tritiya festival, considered
one of the most auspicious days to buy gold.
Spot gold prices declined by 0.67 percent
Supply of the yellow metal into India has
on Monday to close at $1196.1/oz on stronger
risen sharply in the build-up to Akshaya Tritiya,
equities and dollar while China's new policy
although it remains to be seen if consumers
measures to shore up the world's second-largest
will lap up gold products with their usual
economy and risks that Greece may default
enthusiasm, after a drop in gold prices.
largely dominated the price trajectory.
The price of gold fell for two straight years to
Euro zone deputy finance ministers will
2014 after a 12-year rally.
meet midweek ahead of a Eurogroup finance
In its outlook research firm Angel Broking
ministers' gathering two days later, as Athens
said, “On an intraday basis, we expect gold
and its creditors continue to seek a deal on
prices to trade lower as strengthening dollar
reforms to unlock aid.
coupled with break of key psychological mark
Market Highlights - Gold (% change)
as on April 20, 2015
of $1200 will exert downside pressure. On the
other hand, uncertainty with regards to Greece
Gold
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
MCX Gold
(Jun’15)
Unit
Last
Prev.
day
WoW MoM
YoY
probable defaults of its debts will dominate
$/oz
1196.1
-0.67
-0.2
1.2
-7.6
Rs/10
gms
26750.0
2.75
0.6
$/oz
1193.2
-0.03
0.0
-0.3
-7.4
Rs /10
gms
27012.0
0.17
0.6
2.8
-3.5
3.3 -10.2
Source: Angel Broking
the news for precious metals. Meanwhile, the
meeting of Euro zone finance ministers with
regards to a deal to unlock aid will also be the
influencing factor.”
5
6
Tuesday 21, April 2015
Daily
Base Metals
Market Highlights - Crude Oil (% change)
Base metals on the LME apart from Nickel
traded lower yesterday as mixed market
sentiments along with strength in the DX
exerted pressure on prices.
Nickel was the only gainer in the pack with
upside movement of 1.3 percent whereas
Copper was the biggest loser with decline of 1.4
as on April 20, 2015
Crude Oil
Unit
Last Prev.
day
WoW
MoM
YoY
Brent (Spot)
$/bbl
61.1
-0.2
7.1
12.0 -44.6
Nymex Crude
(June’ 15)
$/bbl
56.4
1.1
8.6
23.3 -46.0
ICE Brent Crude
(June’ 15)
$/bbl
63.5
0.0
9.5
14.7 -42.1
MCX Crude
(May ’15)
Rs/bbl
3531.0
1.1
7.9
19.8 -43.8
Source: Angel Broking
percent.
On the MCX, base metals except Nickel traded
for U.S. crude in the second half of last week
on a negative note in line with international
outweighed pressure from near record high
trends.
production in Saudi Arabia.
LME Copper plunged by 1.5 percent on
Tensions after the dispatch of U.S. Navy
Monday owing to strength in the DX. Also,
ships to waters near Yemen and an alert issued
concerns over Greece hurt market sentiments,
by Saudi Arabia for a possible militant attack
thereby affecting demand for the metal. Further,
supported crude prices.
surge of 1.4 percent in LME stocks exerted
On the MCX, oil prices rose by 1.1 percent to
close at Rs.3531/bbl.
pressure on prices.
eased
Natural gas prices on the NYMEX declined
monetary policy by China to stimulate a slowing
by 2.85 percent on Monday to close at $2.59/
economy faded soon, due to concerns over
MMbtu while MCX gas prices also declined by
demand.
2.37 percent to close at Rs.161/MMbtu.
Also,
optimism
regarding
the
MCX copper prices traded lower by 0.8
In its outlook, Angel Broking said, “On an
percent and closed at Rs.380.9/kg on Monday
intraday basis, we expect crude oil prices to
but sharp losses were restricted owing to Rupee
trade higher continuing its positive run from
depreciation.
the previous trading session. Declining oil rigs in
In its outlook, Angel Broking said, “We expect
the US, and drawdown in US crude inventories is
LME Copper prices to trade lower today as rise
possible factors for oil prices to go higher in the
in risk aversion in the market sentiments owing
coming trading session. On the MCX, oil prices
to uncertainty over Greece situation will hurt
are expected to trade higher taking cues from
demand. Further, concerns over construction
strength in international markets.”
sector in China will exert pressure. On the MCX,
News & Report
Analysis
copper prices are expected to trade sideways
taking cues from Rupee depreciation.”
Energy Market
The crude oil prices rose on Monday with
3rd round of coal mine
auction likely in May
WTI gaining by 1.1 percent to close at $56.4/
The third round of coal block auction may
bbl as a drop in stockpiles at the delivery point
get off the ground next month, a top official
Daily
said on Monday.
"The third round of coal mines auction may
begin in May," Coal Secretary Anil Swarup said.
Tuesday 21, April 2015
surpassing the presumptive loss of Rs 1.86 lakh
crore estimated earlier by the CAG.
Parliament had last month approved Coal
The government may come out with a notice
Mines (Special Provisions) Bill, 2015, which
inviting application for the mines for the next
formed a crucial cog in the NDA government's
round of auction next week.
reforms wheel.
The ministry may put up 23 blocks this time.
The government had earlier said the auction for
the third round will begin later this month.
"Most of the clearances of the coal blocks (to
be auctioned in the third lot) are there," he had
said.
Swarup had earlier tweeted that states will
receive Rs 466 crore as first tranche while the
Centre will not keep any revenue from this
upfront payment by bidders.
The government has garnered over Rs 2 lakh
crore by auctioning off 29 blocks in two phases,
JSW Steel's FY15 crude steel
production up 4% at 12.63 mt
Sajjan Jindal-led JSW Steel on Monday said
its crude steel production grew 4 per cent to
12.63 million tonnes (MT) for the 2014-15 fiscal.
The company produced 12.17 MT of crude
steel in 2013-14, JSW Steel said in a regulatory
filing to the BSE.
The company also recorded 12 per cent
growth in its long product segment at 2.06 MT
for the year under review, it added.
7
Daily
"The growth in long product segment is
due to improved utilisation of our long product
facility as a result of better market share," the
company said.
In the flat product segment, its production
Tuesday 21, April 2015
FY'15 mainly due to shutdown of about 47 days
taken for annual maintenance of one of the
blast furnaces at Vijayanagar Works," it said.
Posco, SAIL propose to set up
steel plant, says govt
grew by 3 per cent to 10.07 MT in the last fiscal.
Talks are on between South Korean steel
However, in the January-March quarter of
major Posco and state-run domestic giant
last fiscal, JSW Steel's crude steel production
SAIL to set up an integrated steel plant, the
dipped by around 3 per cent to 3.06 MT as
government said on Monday.
against 3.15 MT in 2013-14.
"The crude steel production is lower in Q4
"SAIL and Posco recently discussed possible
collaboration opportunities including setting
8
Daily
9
Tuesday 21, April 2015
up of an integrated steel plant," Minister of
Earlier, Tomar had said the firm, which
Steel and Mines Narendra Singh Tomar told Lok
was assured Khandadhar iron-ore mine via
Sabha in a written reply. "The discussions are at
dispensation route, will have to participate in
a very preliminary stage," he added.
the auction process to get a mining lease.
On Posco's USD 12 billion Odisha project,
Posco
was
previously
promised
the
considered the largest FDI in India, Tomar in his
Khandadhar iron ore mine by the state
reply said, "The Memorandum of Understanding
government for its mega steel plant, but the
(MoU) of Posco, for setting up of a mega steel
actual allocation never happened due to delays
plant at Jagatsinghpur in Odisha has not yet
in regulatory approvals.
been renewed by the State Government."
Although the company has an MoU with the
The steel maker's proposed project in Odisha
Odisha government for assured allocation of
has been stalled for about a decade on account
mining leases, the passage of the Mines Bill has
of regulatory hurdles, including delays in land
mandated the allocation of all mines through
acquisition. With this project for producing 12
auction route only and the agreement with the
million tonne per annum (MTPA) steel stalled
state government is not binding.
for long, Posco has been exploring other
500 tonne titanium sponge
plant comes up in Kerala
investment opportunities in India.
Sources said that Posco and SAIL are in talks
to jointly set up a 3 million tonne integrated
plant in Jharkhand, after their initial talks could
not materialise. The world's fourth largest steel
firm's CEO Kwon Oh-Joon, India CMD Gee
Woong Sung and Korean Ambassador JoonGyu Lee had met Prime Minister Narendra Modi
in January and are believed to have discussed
new investment plans.
Earlier, negotiations between SAIL and
Posco for steel plant at Bokaro had failed on
the ownership issue. Posco was demanding
a majority stake which SAIL had refused. As a
result a pact between them for the project did
not materialise. Posco had entered into a pact
with Odisha government on June 22, 2005 for
setting up the plant.
Besides these delays, in a blow to the
company, earlier this year the Centre said Posco
would be have to participate in auction to
procure iron ore mines to feed its facility instead
of direct allotment assured earlier.
In a bid to enhance titanium output, the
Department of Space in collaboration with
KMML has set up a 500 tonne per annum (TPA)
titanium sponge plant in Kerala, the government
said on Monday. Titanium sponge is known
Daily
for its high strength but low weight, making
it an ideal material for aircraft manufacture,
Tuesday 21, April 2015
10
MOIL posts 10% growth in
core production in FY15
including fighter aircraft besides it is sued in
nuclear plants, engine parts, ocean platforms,
reactors, manufacture of dental implants and
artificial bones.
“Department of Space in collaboration with
Kerala Minerals & Metals Ltd (KMML) has set up
a 500-tonne-per-annum titanium sponge plant
at KMML’s facility in Chavara Kerala,” Minister
of State for Mines and Steel Vishnu Deo Sai
informed the Lok Sabha in a written reply.
NMDC targets Rs 13,500 cr
turnover for current fiscal
Country's largest iron ore miner NMDC has
set a target of Rs 13,500 crore in turnover for the
current fiscal, the government said on Monday.
State-owned Manganese Ore India (MOIL)
The state-owned firm has signed a pact with
has registered a growth of 9.90 per cent at 9.77
the government according to which it has also
lakh tonne in its core production during the
set a production target of 350 lakh tonne in the
fiscal year 2014-15.
current fiscal, Minister of State for Steel Vishnu
This has been a year of challenges for mining
Deo Sai said in a written reply to the Lok Sabha.
and metals industry and for manganese ore
According to the agreement, NMDC will
sector in particular, the company stated in the
make a capital expenditure of Rs 3,767 crore in
the 2015-16 fiscal.
release.
"Despite that, the company has been able to
The company has set a gross operating
record 9.90 per cent jump in its core production
margin target of Rs 9,450 crore. Its turnover in
(i.e. ferro and silico grade of manganese ore,
the 2013-14 fiscal was Rs 12,058 crore. Full year
excluding fines). The core production stands at
results for last fiscal are yet to be announced.
9.77 lakh tonne against 8.89 lakh tonne during
However, the company is currently facing the
FY 2013-14," it said.
heat on account of falling iron ore prices in the
MOIL, headed by chairman and managing
international market. It had to cut prices by up to
director G P Kundergi, is the largest producer of
20 per cent in a mid-month review on April 18.
the manganese ore.
In the international market the price of the
It operates 10 mines in Maharashtra and
steel- making raw material came down to a
Madhya Pradesh and has also diversified
decade low of $47 per tonne owing to higher
into manufacture of electrolytic manganese
supply and subdued demand from China, the
dioxide and ferro alloys as well as generation of
largest consumer of iron ore and producer of steel.
electricity through wind turbine generators, the
release added.
Daily
Govt proposes 100-year
mining lease for PSUs
For public-sector firms, a new mining lease
could virtually remain valid for up to 100 years,
compared with a maximum of 50 years for
their private-sector counterparts under the
new Mines and Minerals (Development and
Regulation) Amendment Act, 2015.
As per the draft rules released by the
ministry of mines under the Act, unlike private
companies, PSUs won’t have to bid all over
again to extend their leases beyond the initial
tenure of 50 years. Of course, the private lessee
wanting to extend the tenure of a lease would
have the first right of refusal.
The proposal to allow extension of the initial
mining lease of state-run firms like SAIL and
Tuesday 21, April 2015
11
NMDC for iron ore, copper and bauxite for a
maximum of another 50 years sans auction is
aimed at protecting the long-term interest of
the state-run firms and ensuring that they do
not stare at a raw material crunch. The extra
facility for PSUs would be applicable for mines
bagged through the auction route or through
the dispensation (nomination) route.
Of course, lease would end earlier if the
extractable resources of the mine are exchausted.
In case the mine has 10 residual years of life
after the initial 50-year lease, for instance, the
PSU lessee would get only a 10-years extension
from the respective state government. The life
of a mine depends on various issues such as its
deposit, its exploration programme and the rate
of production.