We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 18 September 13
IRON ORE AND ZINC ARE BEST PERFORMING MINING SECTORS IN CURRENT LOW PRICE, HIGH COST ENVIRONMENT - WOOD MACKENZIE
 With the fall in commodity prices, cash margins in the mining industry have come under pressure. Accordingly, producers and investors are placing intense focus on both operating and capital costs. Wood Mackenzie's report titled 'Who hurts most' analyses cash costs and margins across the bulk commodities as well as base and precious metals. The report reveals that the iron ore and zinc sectors will perform best on average; while copper, export metallurgical coal and gold will be most challenged. Based on this, companies may have to make important decisions to protect their overall margins.
Wood Mackenzie finds that amongst the bulk commodities, iron ore stands above the rest. Despite pulling back from 2012 levels with a 19% cash margin decline, iron ore still has a very strong average industry margin of US$49/tonne (52% of average price) in 2014, enabling continued large cash generation in this high volume business. This supports the on-going focus by the major producers like Rio Tinto, BHP Billiton and Vale, on pushing ahead with expansions at their low cost iron ore operations. It is also in stark contrast to coal and bauxite, both of which have average margins of less than 25% in 2013 - the outlook is particularly bleak for export thermal coal with an average margin of only 19% in 2014.
Mr Steve Hulton, Principal Mining Analyst for Wood Mackenzie, says, "The sectors that fare the worst, with biggest average falls in margins from 2012 to 2014 are copper, export metallurgical coal and gold. Nickel has the lowest average industry margin of only 13% of price in 2013. This rises slightly in 2014, but it is still the worst of all commodities studied. As such, the nickel industry is under severe pressure. In 2012, one-third of industry production generated negative margins after taking into account total cash and sustaining capex costs."
The zinc mining sector has a very high average margin as a percentage of the metal price due to the large contribution of by-product credits like copper, lead, silver and gold, which offset operating costs. While remaining relatively high, the average zinc margin is expected to decrease to 83% in 2014, even with a rising zinc price, due to the lower value of by-product revenue in this polymetallic sector.
For the copper and gold industries, lower prices will continue to put pressure on overall operational cash-flow. In Wood Mackenzie's analysis, average industry margins in 2014 fall to 39% for copper and 44% for gold, down from 49% and 50% respectively from 2012. In export met coal, margins in 2014 are only 25% of average price, down from 30% in 2012.
Mr Hulton explains the importance of this analysis to producers, "Operating costs in the mining industry have risen rapidly over recent years, but now that prices have dropped there is a renewed focus from mining companies on reducing costs and trying to protect margins."
"To compare overall operating margins, we examine total cash cost plus sustaining capital. For producers to accurately assess cash margins at the mine level, just examining the basic C1™ operating cost can be misleading. Total cash cost plus sustaining capital is a better full cash cost measure. This comprises the C1™ operating cash cost plus indirect cash costs such as royalties & levies, and the cash spend on capital required to sustain production." The industry standard C1™ cost is the direct cash cost of mining, processing and offsite realisation costs, including any by-product credits. It is primarily used to compare the relative underlying cost efficiency of production between mines.
Mr Hulton concludes, "Individual mining companies will be variously affected depending on their exposure to the different commodities, and where their particular mines sit on the respective industry cost/margin curves. As price takers, there are limited tunes the producers can play and one of them will be to slow down on capital spend, and prioritise the commodities that have the best returns."
*Note: The base and precious metals commodities covered in the analysis are copper, nickel, zinc and gold. The bulk commodities covered in the analysis are metallurgical export coal, thermal export coal, bauxite and iron ore.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 22 November 23
INDIA: GOVERNMENT PLANS 1.4 BILLION TONNE COAL OUTPUT BY 2027 - LIVEMINT
The Union coal ministry on Monday announced plans to increase India’s coal production to 1.404 billion tonne by 2027, with an eye to further ...
Wednesday, 22 November 23
OBLIGATION. INDONESIA AIMS TO START COLLECTING LEVIES FROM COAL MINERS IN JANUARY - REUTERS
Indonesia plans to start collecting levies from coal miners in January to be used to compensate miners who sell coal to the state utility at lower ...
Tuesday, 21 November 23
INDIAN COAL POWER PLANTS’ CAPACITY UTILISATION WILL IMPROVE TO 65% THIS FISCAL: - CRISIL
Coal-based thermal power units’ plant load factor (PLF) or capacity utilisation will improve to 65 percent in the current fiscal year despite ...
Tuesday, 14 November 23
CAPITAL PRODUCT PARTNERS L.P. ANNOUNCES TRANSFORMATIVE TRANSACTION INCLUDING THE ACQUISITION OF 11 NEWBUILD LNG CARRIERS FOR $3.1 BILLION
Capital Product Partners L.P. announced that it has entered into an umbrella agreement (the “Umbrella Agreement”) with Capital Maritime ...
Tuesday, 14 November 23
COAL INDIA BEATS Q2 PROFIT VIEW ON HIGH POWER DEMAND AMID WEAK MONSOON - REUTERS
Coal India on Friday reported better-than-expected second-quarter profit, helped by high power demand and boosted production amid a weak monsoon.
...
|
|
|
Showing 71 to 75 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Baramulti Group, Indonesia
- SN Aboitiz Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Kobexindo Tractors - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- PowerSource Philippines DevCo
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Formosa Plastics Group - Taiwan
- Bulk Trading Sa - Switzerland
- Lanco Infratech Ltd - India
- Orica Mining Services - Indonesia
- Rio Tinto Coal - Australia
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Star Paper Mills Limited - India
- Madhucon Powers Ltd - India
- Samtan Co., Ltd - South Korea
- Deloitte Consulting - India
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- India Bulls Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Interocean Group of Companies - India
- Xindia Steels Limited - India
- Bangladesh Power Developement Board
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Planning Commission, India
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- Bhoruka Overseas - Indonesia
- Cigading International Bulk Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bharathi Cement Corporation - India
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Kaltim Prima Coal - Indonesia
- The University of Queensland
- South Luzon Thermal Energy Corporation
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Marubeni Corporation - India
- Aboitiz Power Corporation - Philippines
- Sojitz Corporation - Japan
- London Commodity Brokers - England
- GVK Power & Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- Merrill Lynch Commodities Europe
- SMG Consultants - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- MS Steel International - UAE
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- Petrochimia International Co. Ltd.- Taiwan
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Antam Resourcindo - Indonesia
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- Chettinad Cement Corporation Ltd - India
- Heidelberg Cement - Germany
- Australian Commodity Traders Exchange
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- GAC Shipping (India) Pvt Ltd
- Bayan Resources Tbk. - Indonesia
- Mintek Dendrill Indonesia
- Georgia Ports Authority, United States
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Edison Trading Spa - Italy
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Petron Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Tata Chemicals Ltd - India
- Aditya Birla Group - India
- Malabar Cements Ltd - India
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Renaissance Capital - South Africa
- Toyota Tsusho Corporation, Japan
- TeaM Sual Corporation - Philippines
- Energy Development Corp, Philippines
- Larsen & Toubro Limited - India
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Commonwealth Bank - Australia
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- Eastern Coal Council - USA
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Power Finance Corporation Ltd., India
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Bukit Makmur.PT - Indonesia
- ASAPP Information Group - India
- VISA Power Limited - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Posco Energy - South Korea
- Attock Cement Pakistan Limited
- Siam City Cement - Thailand
- Borneo Indobara - Indonesia
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- Thai Mozambique Logistica
- IEA Clean Coal Centre - UK
- Bhatia International Limited - India
- Leighton Contractors Pty Ltd - Australia
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- PTC India Limited - India
- Central Java Power - Indonesia
- San Jose City I Power Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Independent Power Producers Association of India
- AsiaOL BioFuels Corp., Philippines
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- LBH Netherlands Bv - Netherlands
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Australian Coal Association
|
| |
| |
|
