The Anglo American Kumba iron ore production for Q1 CY19 witnessed at 9.5 MnT, down 12% as against Q1 CY18 production at 10.8 MnT. On quarterly basis too, the production dropped 6% as against Q4 CY18 at 10.2 MnT. The production was on lower side due to unplanned plant maintenance at Sishen and Kolomela mine.
Kumba iron ore exports up 2%; domestic sales down 16% in Q1 CY19
• The Kumba iron ore exports in Q1 CY'19 increased to 10.1 MnT as against 9.95 MnT in Q1 CY18 amid rising demand for premium quality lump products.
• The Kumba iron ore domestic sales dropped 16% to 0.75 MnT against 0.89 MnT in Q1 CY18.
Minas-Rio mine production up 61% in Q1 CY19 amid ramp-up projects
Minas Rio mines, pellet production for the quarter witnessed at 4.9 MnT, up 61% against 3.05 MnT in Q1 CY18 amid progression of ramp-up projects.
The production in Q1 CY19 picked up against 0.2 Mnt in last quarter due to operation resumption at mine in Dec’18. The production at mine was suspended in Mar’18 following discovery of two leakage in iron ore pipeline from mine to Acu port.
Minas Rio pellet sales up 39% in Q1 CY19
Minas Rio pellet sales recorded at 4.03 MnT in Q1 CY19, up 39% as compared to 2.9 MnT in Q1 CY18. The pellet sales picked up in Q1 CY19 after being nil for H2 CY18.
Anglo American: 2019 Guidance
• The 2019 production guidance for Kumba iron ore mine remain intact at 43-44 MnT
• Minas Rio pellet production guidance for 2019 remains firm at 18-20 MnT (wet MT basis).
Indian iron ore export volumes for July’19 stood at 2.13 MnT, up 19% as against 1.79 MnT in June’19. On yearly basis, exports increased significantly compared to July’18 at 0.17 MnT.
State-owned pellet maker - KIOCL (Kudremukh Iron Ore Company Ltd) recorded enhanced pellet production for first quarter FY20. The production recorded at 0.61 MnT, above the set target of 0.49 MnT. The production marked 38% increase Y-o-Y as against Q1 FY’19 production at 0.44 MnT.
In 1956, the giant Northshore Mining plant on the shores of Lake Superior was the first facility built in North America to make pellets out of taconite, a low-grade iron ore. It used a process developed at the University of Minnesota after the supply of high-grade natural ore in the state was nearly mined out.
World analytics market is full of different kind of forecasts, but mostly unworkable or partly workable. Actually, it doesn’t matter what price will be for raw materials, semifinished products or finished steel products. The target is to calculate the spread between raw materials and steel products. Let’s try to make a forecast from that side.
Locked in a prolonged face-off with the central mines ministry over the relaxation of mining lease area limits, the Odisha government may still pursue on auctions of 21 iron ore blocks presently under the leasehold of merchant miners.
Anglo American’s De Beers, the world’s No.1 diamond miner by value, will once again let buyers reject some of the precious stones at the company’s upcoming sale amid weak prices and miners facing challenging times, especially those producing cheaper and smaller stones where there is too much supply.