INDUSTRY UPDATES On 20th November, 2012

On 20th November, 2012
Govt decides to deallocate coal mine jointly given to 3 cos.
Acting on the recommendations of the Inter-Ministerial Group on coal blocks, the government has decided to deduct or forfeit bank guarantees to the tune of Rs 25.7 crore as the case may be, involving 11 firms for sitting idle on coal blocks allocated to them for captive use.

The Coal Ministry has asked for forfeiture of Bank Guarantee (BG) of Rs 11.8 crore with regard to Gondhkari coal block jointly allotted to Maharashtra SeamlessBSE 0.11 %, Dhariwal Infrastructure and Kesoram Industries LtdBSE -0.33 %.

"Accordingly, Gondkhari coal deallocated and bank guarantee amounting to Rs 11.87 crore furnished by the allocatee companies is forfeited and be encashed," the coal ministry said in a letter dated November 15 to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries. The companies whose BG has been ordered for deduction includes, Grasim IndustriesBSE -0.64 %, Gujarat AmbujaBSE -0.41 % Cements, Lafarge India, among others.

The Inter-Ministerial Group (IMG) has concluded the scrutiny of coal blocks allotted to private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees. The IMG has also recommended de-allocation of eight such blocks alloted to public sector firms after scrutiny of 19 cases.

A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. The CAG had estimated that undue benefits to the tune of Rs 1.86 lakh crore might have accrued to private firms on account of allocation of 57 mines to them without auction.
(Economic Times)

China continues to remain the top importer of iron ore from Goa

China continues to remain the top importer of iron ore from Goa. Statistics complied by the Goa mineral ore exporters association indicate that over 89% of Goa's registered ore was exported to China in 2011-2012.

Over 38 million tonnes of Goa's registered iron ore was exported in 2011-2012, out of which over 34 million tonnes was exported to China.

Goa exports iron ore to China, Japan, South Korea, Europe and the United Arab Emirates. Besides China, Goa's mining companies export over 2 million tonnes to Japan, over 1 million to South Korea, 3,79,075 tonnes to Europe and 52,500 tonnes to the UAE.

GMOEA statistics said that Fomento resources pvt ltd, Prime mineral exports pvt ltd and Sociedade de Fomento industrial pvt ltd have exported 4,50,343 tonnes of non Goa iron ore to China.

Out of 28 mining companies, which were involved in exports of Goa registered ore, only 5 companies exported ore to Japan. Between, 2003 to 2005 Japan was the number one importer of Goa ore which was replaced by China, after the mining boom in the state.

All 28 companies exported Goan registered iron ore to China. Sesa Goa Ltd and Sesa Resources Ltd exported over 11 million tonnes and Fomento's Sociedade de Fomento Industrial Pvt Ltd, Prime Mineral Exports Pvt Ltd, Fomento Exports Pvt Ltd, and Infrastructure Logistics Pvt Ltd exported over 7 million tonnes.

Meanwhile, VM Salgaocar and Bro PVT Ltd exported over 3 million tonnes, Chowgule and Company Pvt Ltd exported over 1 million tonnes, Timblo Enterprises Limited exported over 2 million tonnes, Panduronga Timblos Industries exported over 1 million tonnes to China.
(Steel Guru)
NMDC aims 48 million tonnes of iron ore capacity by FY15

Business Standard reported that NMDC plans to increase its iron ore production capacity to 48 million tonne per annum by 2014-15 from current installed capacity of 32 million tonne per annum.