August 7, 2008
August 7th (Steel Guru) – BNamericas reported that Australia’s Strike Resources along with Apurímac Ferrum and two other Peruvian partners are planning to launch a 20 million tonnes per annum iron ore mine in Peru in mid 2012.
A recent pre feasibility study on the project in south central Peru’s Apurímac department laid out a USD 2.6 billion CAPEX, 15 year mine life and 20 million tonnes per annum production, making it the largest iron ore mine in Peru.
But before a positive final feasibility study can be carried out for the mine, it must increase the roughly 172 million tonnes of inferred resources grading 62.3% iron ore to at least 300 million tonnes and upgrade the category of mineralization.
Mr Federico Schwalb GM of Apurímac Ferrum said that the study contemplates construction of an open pit, processing plant, a port and a roughly 360 kilometers long pipeline to transport the product from the mine to the port. He added that the companies involved are also considering transporting the product by train.
In addition, the project’s partners are involved in a dispute concerning their respective stakes in the property, but which does not impact Apurímac Ferrum and also is not obstructing the advance of the project.
Strike Resources is also involved with Apurímac Ferrum in a project in Cuzco department, which is at a conceptual stage, although exploration is being carried out. Presently Shougang Hierro Perú, which operates in Ica department, is the country’s only iron ore producer. Shougang sold 7.71 million tonnes of iron ore in 2007 and is planning to double capacity to 16 million tonnes per annum by mid 2010.
July 24, 2008
The strike had started nine days ago at the mine, owned by Shougang of China, and it was the latest in a string of walkouts workers have held this year at mines across Peru to demand a bigger share of surging corporate profits.
“The strike has ended,” said Raul Vera, the mine’s general manager. Union officials said the Labor Ministry asked workers to end the strike at the mine, which produced 5.1 million tons of iron ore last year.
Union leaders at several mines have said companies have threatened to fire workers who had participated in a nationwide mining strike this month.
July 22, 2008
July 22nd (Steel Guru) – Reuters reported that Severstal, Essar, BaoSteel Shougang, Shagang and a Japanese consortium are among the groups that are in the second round of bidding for CSN’s iron ore unit Namisa in Brazil.
As per report, the Japanese consortium is led by a trading house and includes domestic steelmakers. Two sources confirmed that a Japanese group was bidding, but did not identify the companies.
Two separate Chinese consortia are also bidding. One is a steel consortium of Baosteel Group and Shougang Group and the other is top private steelmaker Shagang Group, which could potentially team up with a trading house, smaller steel mills and sovereign wealth fund CIC.
The second round of bids is expected in the next few weeks, although several sources described a somewhat fluid process. One said some potential bidders, such as Anglo American, had yet to commit but could still make a late entry to the bidding.
CSN hired Goldman Sachs earlier this year to sell some or all of it’s Namisa subsidiary, taking advantage of raging demand for iron ore. Goldman had put a USD 10 billion price tag on the asset, the top end of analysts’ range of values, although several investment bankers mentioned a value of USD 7 billion to USD 8 billion.
CSN has plans to boost Namisa’s annual production capacity from 7.5 million tonnes this year to 42 million tonnes. That aspiration, combined with an enterprise value of USD 250 per tonne of iron ore, could justify a price of USD 10 billion or more.
July 12, 2008
Workers were on strike at the mine last week as part of a nationwide mining walkout, and say they have unresolved complaints the Chinese company should address.
Julio Ortiz, a union leader, told Reuters the strike would start Monday morning at 8:00 local time (1300 GMT).
“It is for solution of the miners’ demands,” Ortiz said about the walkout, which is over benefits and wages.
Miners at Shougang lifted their strike last week after the government declared the nationwide walkout illegal, paving the way for companies to fire miners who did not return to work.
Dozens of protests have been held this year as Peruvians demand a bigger slice of the country’s six-year economic boom. Peru’s economy is one of the fastest growing in the world, though the poverty rate remains near 40 percent.
July 9th (Steel Guru) – It is reported that Shougang Group’s Dashihe strip mine recently gets deep mining approval on its Xingshan mining district by China’s National Development and Reform Commission.
As per report, the deep mining project at Xingshan mining district is planning to yield 3.2 million tonnes of crude ore annually which after concentration will filter out 1.056 million tonnes of iron ore concentrate with grade of 66%.
The project not only can prolong mine life for Xingshan mining district, but also can strengthen Shougang Group by enlarging iron ore self supply.
July 3, 2008
July 3rd (Guardian) – Workers at Peru’s third-largest copper pit threw their weight behind a nationwide strike that entered its third day on Wednesday, as miners in hard hats marched through Lima to demand a bigger slice of corporate profits.
June 21, 2008
June 21st (Steel Guru) – Interfax China quoted China’s Ministry of Commerce in an announcement said that Shougang Hierro Peru SAA, a Peru based Shougang subsidiary will begin development of new mining zones at Marcona in Peru to double its annual iron ore production which will require investment of USD 1 billion.
According to the released, Shougang Hierro plans to construct an ore processing plant and a 3 million tonne pellet plant at the mine which would in turn double its annual capacity of iron ore.
Mr Wu Bin president of Shougang Hierro said the company intends to first increase iron ore production by 8 million tonnes and then reach final annual production capacity of 20 million tonnes within four years.
Shougang officials were not available for comment when reached by Interfax today.