MUMBAI--The London Stock Exchange Group PLC is keen to bring in new companies from India and African nations into its fold as a way to expand their investor base.
The London Stock Exchange, which is more than 300 years old, will compete with other international exchanges to attract emerging market companies to offer overseas investors' a chance to invest in growing markets within the legal and regulatory framework of a global exchange.
In India, the LSE seeks to take advantage of the similarities in the British and Indian legal regimes to bring newly listing companies to both the main London Stock Exchange and its Alternative Investment Market, said Ibukiveun Adebayo, head of international business development for India, the Middle East, and Africa.
The Alternative Investment Market, or AIM, focuses on listing mid-sized firms.
Already India's Vedanta Resources PLC and Essar Energy PLC turned to the LSE to raise capital when their businesses turned international. Vedanta, for example, gets a large part of its business from India, but also owns large mining businesses in other geographies, especially Africa.
Mr. Adebayo said the London bourse will focus on building potential cross-listing arrangements or other such offerings for companies, allowing them to retain their existing Indian investor exposure as well as raise their international investor base.
Africa is another key growth area for the exchange where investment activity looks set to pick up sharply over the next few years, he said.
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Tuesday, June 14, 2011
Monday, May 23, 2011
IGC updates Iron Ore Business
In July 2010 the Government of Karnataka stopped issuing permits for the transportation of iron ore from mines in Karnataka. This action was taken to curb illegal mining and put in place processes to better monitor the movement of iron ore. It effectively shut down ore mining in the state. Subsequently, the mine owners' lobby went to court to have the mines reopened. Upon hearing the case the court ordered that processes to monitor mining and transportation of ore be put in place by April 20, 2011, effectively reopening mining and transportation. However, the State of Karnataka was unable to put in place all the processes by the stipulated date and as a consequence has not reopened mining in the state. Currently, the Government is in the process of inspecting mines in Karnataka and in conversations with officials they expect to complete the inspection in June. If in fact, they complete inspecting the mines, movement of ore for domestic consumption could begin in July with exports opening shortly thereafter.
The overall demand for ore has not abated over the past one year and is expected to increase. According to the Australia & New Zealand Banking Group, the Indian iron ore market stands to gain from higher exports to China as re-building from Japan's earthquake signals a potential $30 billion increase in demand for steel.
India increased the export taxes from 5% to 20% on all grades of ore. "We do not expect any impact on Indian iron-ore exports as a result of the Indian tax changes until spot prices drop by at least around $30," said Melinda Moore, director and global commodities coordinator at Credit Suisse Equities. It remains profitable to sell the material overseas given current spot prices, she said. The price of 62 percent-content iron ore delivered to Tianjin port in China has risen about 5 percent this year to $178.5 per metric ton, according to data from Steel Business Briefing.
In light of the developments in India, IGC has 1) begun identifying domestic customers that can be serviced, 2) begun negotiations with transporters and mine owners to create the-end-to-end delivery process to service domestic customers, 3) continuing to communicate with our Chinese customers to appraise them of the rapidly evolving situation in India and 4) identified sites for an iron ore crusher. In addition we have applied and diligently followed up on mining licenses in India. We believe that substantial long-term value for our shareholders can come from owning mining assets or mining licenses. As such, we have begun identifying potential acquisition candidates in India as well as in Malaysia, Africa and North America.
Ram Mukunda, CEO of IGC, said: "While the past year has clearly been frustrating, we remain hopeful that the situation in Karnataka will be resolved soon. In the meantime, we expect demand to continue rising in India, China and now Japan. We have undertaken a program to expand our sourcing of materials beyond India."
About IGC: Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and construction company operating in India. Through our subsidiaries in India, we supply iron ore to China and rock aggregate to the infrastructure industry in India. For more information about IGC, please visit the company's web site at http://www.indiaglobalcap.com/.
The overall demand for ore has not abated over the past one year and is expected to increase. According to the Australia & New Zealand Banking Group, the Indian iron ore market stands to gain from higher exports to China as re-building from Japan's earthquake signals a potential $30 billion increase in demand for steel.
India increased the export taxes from 5% to 20% on all grades of ore. "We do not expect any impact on Indian iron-ore exports as a result of the Indian tax changes until spot prices drop by at least around $30," said Melinda Moore, director and global commodities coordinator at Credit Suisse Equities. It remains profitable to sell the material overseas given current spot prices, she said. The price of 62 percent-content iron ore delivered to Tianjin port in China has risen about 5 percent this year to $178.5 per metric ton, according to data from Steel Business Briefing.
In light of the developments in India, IGC has 1) begun identifying domestic customers that can be serviced, 2) begun negotiations with transporters and mine owners to create the-end-to-end delivery process to service domestic customers, 3) continuing to communicate with our Chinese customers to appraise them of the rapidly evolving situation in India and 4) identified sites for an iron ore crusher. In addition we have applied and diligently followed up on mining licenses in India. We believe that substantial long-term value for our shareholders can come from owning mining assets or mining licenses. As such, we have begun identifying potential acquisition candidates in India as well as in Malaysia, Africa and North America.
Ram Mukunda, CEO of IGC, said: "While the past year has clearly been frustrating, we remain hopeful that the situation in Karnataka will be resolved soon. In the meantime, we expect demand to continue rising in India, China and now Japan. We have undertaken a program to expand our sourcing of materials beyond India."
About IGC: Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and construction company operating in India. Through our subsidiaries in India, we supply iron ore to China and rock aggregate to the infrastructure industry in India. For more information about IGC, please visit the company's web site at http://www.indiaglobalcap.com/.
Tuesday, May 10, 2011
BJP booklet throws mine muck on Dharam Singh and HD Kumaraswamy
Even as Congress leaders were heading to Raj Bhavan to demand the dismissal of BJP government, the ruling party on Monday released a booklet titled Who is responsible for the mining mess in Karnataka?, presenting several facts on mining during the recent regimes starting from SM Krishna to BS Yeddyurappa.
Releasing the booklet, BJP MP DB Chandre Gowda pointed out that the highest number of 47 mining licences were recommended during HD Kumaraswamy’s tenure, closely followed by 43 when Dharam Singh was the chief minister. The score of SM Krishna’s government stood at 16 and even former governor Rameshwar Thakur had recommended 22, while Yeddyurappa had recommended 24 licences.
“Of the 47 recommendations, 22 were made in the last 15 days of his rule. This was after the BJP withdrew its support to the government. Does one need any further examples of illegality and immorality?”
Instead of owning up responsibility for the mining mess systematic attempts were being made by Congress and JD(S) leaders who were misleading the public through a smear campaign against the BJP government, he said. “It is high time the public is told the real facts,” he said.
It was during the period of Dharam Singh that a decision was taken to allow movement of iron ore dumped illegally on patta lands by issuing dispatch permits ignoring the advice of mines department officials. The Lokayukta has held this as unlawful and recommended recovery of loss amounting to `23 crore from Dharam Singh.
But strangely the then governor, Rameshwar Thakur, dropped the case against Dharam Singh citing flimsy grounds. “What more proof does one need to prove complicity of the Congress with mining mafia?” asked Chandre Gowda.
Stating that it was Yeddyurappa government which has initiated measures to curb illegal mining, he asked, “If the BJP government is really colluding with mining lobbies then will such a government introduce value added mining policy? Would it have encouraged setting up steel plants while it wouldhave been convenient to allow large scale export of iron ore? Will such a government ban export of iron ore?”
Meanwhile, chief minister BS Yeddyurappa on Monday sought the intervention of prime minister Manmohan Singh for a ban on export of iron ore from the country.“India is the only country where illegal mining is being carried out in almost all the states. There is an urgent need for prime minister Manmohan Singh to intervene on this issue of imposing a total ban on export of iron ore,” he said.
Natural resources including mineral wealth must be preserved and used internally for value addition, he told reporters on the sidelines of a religious function at Kuthyaru, near Udupi. “I have been stressing this (ban on iron ore export) since a long time including at the NDC (National Development Council) meeting of the chief ministers held at New Delhi,” Yeddyurappa said. He also criticised opposition saying that it was under their rule all licences for mining were given.
http://www.indiaglobalcap.com/
Releasing the booklet, BJP MP DB Chandre Gowda pointed out that the highest number of 47 mining licences were recommended during HD Kumaraswamy’s tenure, closely followed by 43 when Dharam Singh was the chief minister. The score of SM Krishna’s government stood at 16 and even former governor Rameshwar Thakur had recommended 22, while Yeddyurappa had recommended 24 licences.
“Of the 47 recommendations, 22 were made in the last 15 days of his rule. This was after the BJP withdrew its support to the government. Does one need any further examples of illegality and immorality?”
Instead of owning up responsibility for the mining mess systematic attempts were being made by Congress and JD(S) leaders who were misleading the public through a smear campaign against the BJP government, he said. “It is high time the public is told the real facts,” he said.
It was during the period of Dharam Singh that a decision was taken to allow movement of iron ore dumped illegally on patta lands by issuing dispatch permits ignoring the advice of mines department officials. The Lokayukta has held this as unlawful and recommended recovery of loss amounting to `23 crore from Dharam Singh.
But strangely the then governor, Rameshwar Thakur, dropped the case against Dharam Singh citing flimsy grounds. “What more proof does one need to prove complicity of the Congress with mining mafia?” asked Chandre Gowda.
Stating that it was Yeddyurappa government which has initiated measures to curb illegal mining, he asked, “If the BJP government is really colluding with mining lobbies then will such a government introduce value added mining policy? Would it have encouraged setting up steel plants while it wouldhave been convenient to allow large scale export of iron ore? Will such a government ban export of iron ore?”
Meanwhile, chief minister BS Yeddyurappa on Monday sought the intervention of prime minister Manmohan Singh for a ban on export of iron ore from the country.“India is the only country where illegal mining is being carried out in almost all the states. There is an urgent need for prime minister Manmohan Singh to intervene on this issue of imposing a total ban on export of iron ore,” he said.
Natural resources including mineral wealth must be preserved and used internally for value addition, he told reporters on the sidelines of a religious function at Kuthyaru, near Udupi. “I have been stressing this (ban on iron ore export) since a long time including at the NDC (National Development Council) meeting of the chief ministers held at New Delhi,” Yeddyurappa said. He also criticised opposition saying that it was under their rule all licences for mining were given.
http://www.indiaglobalcap.com/
Friday, April 22, 2011
Chinese iron ore traders expect softening spot prices
Chinese iron ore traders expect spot import prices to soften further to around $180/tonne cfr China for 63.5% Fe fines in the near term on the retreat of the Chinese steel mills following their recent re-stocking.
In the meantime, 63.5% Fe fines were offered at $186/t cfr on 21 April, down another $1-2/t from the beginning of the week. Transaction prices would be in the range of $180-185/t cfr though no actual transactions were reported by the few traders surveyed by Steel Business Briefing.
“The Chinese mills have more or less finished their re-stocking for this round,” an iron ore trader in north China’s Tianjin observed to SBB. “Together with the further tightening of China’s monetary policies, iron ore offer prices – mainly from India – have been softening since later last week, and this will probably continue in the near term.”
China’s central government raised the cash deposit reserve ratio for banks by another 0.5% to as high as 20.5% starting Thursday, SBB notes.
A second trader in Tianjin shared the sentiment, though he pointed out that the decline will be mild as China’s iron ore demand is unlikely to see any substantial weakening in Q2, the usual peak season for steel consumption.
Indian iron ore traders in Karnataka were allowed to begin exporting iron ore starting 21 April and this may further drag down offer prices in the near term on the anticipated supply increase, a Beijing iron ore trader said.
In the meantime, 63.5% Fe fines were offered at $186/t cfr on 21 April, down another $1-2/t from the beginning of the week. Transaction prices would be in the range of $180-185/t cfr though no actual transactions were reported by the few traders surveyed by Steel Business Briefing.
“The Chinese mills have more or less finished their re-stocking for this round,” an iron ore trader in north China’s Tianjin observed to SBB. “Together with the further tightening of China’s monetary policies, iron ore offer prices – mainly from India – have been softening since later last week, and this will probably continue in the near term.”
China’s central government raised the cash deposit reserve ratio for banks by another 0.5% to as high as 20.5% starting Thursday, SBB notes.
A second trader in Tianjin shared the sentiment, though he pointed out that the decline will be mild as China’s iron ore demand is unlikely to see any substantial weakening in Q2, the usual peak season for steel consumption.
Indian iron ore traders in Karnataka were allowed to begin exporting iron ore starting 21 April and this may further drag down offer prices in the near term on the anticipated supply increase, a Beijing iron ore trader said.
Thursday, April 21, 2011
Investigations continue into illegal mining in Karnataka
Ongoing investigations into alleged illegal mining operations in southern India’s Karnataka state – being conducted by the Supreme Court’s Central Empowered Committee (CEC) – could take some months to conclude.
The regional office of the Federation of Indian Mineral Industries – FIMI South – is demanding that these investigations be conducted on a case-by-case basis so that “minor infringements” and “gross violations” are addressed accordingly, informed sources tell Steel Business Briefing.
Following visits to iron ore mines in the state’s Bellary-Hospet region, the CEC recommended that all mining operations in the area be curtailed in order to check illegal mining, as SBB previously reported. In a hearing on 15 April, the Supreme Court ordered the Karnataka state government to respond to these findings before the next hearing scheduled on 21 April.
Based on the CEC’s initial findings, operations at some 10-15 mines in the region have already been suspended. Representing the interests of the local mining lobby, the FIMI South is arguing that a blanket suspension of all mining operations in the region is uncalled for.
For instance, the CEC noted that some miners have been operating beyond the permitted geographic boundaries of their mines. However, the FIMI South is arguing that in some cases, the mining boundaries may have been inaccurately defined by the state government itself while allotting mining leases.
Consequently, miners who have “erred inadvertently” should not be penalised on the same scale as those who have “intentionally committed gross violations,” a local source tells SBB. Should the Supreme Court call for more detailed investigations, it could take “several months” for the issue to be resolved, he adds.
The regional office of the Federation of Indian Mineral Industries – FIMI South – is demanding that these investigations be conducted on a case-by-case basis so that “minor infringements” and “gross violations” are addressed accordingly, informed sources tell Steel Business Briefing.
Following visits to iron ore mines in the state’s Bellary-Hospet region, the CEC recommended that all mining operations in the area be curtailed in order to check illegal mining, as SBB previously reported. In a hearing on 15 April, the Supreme Court ordered the Karnataka state government to respond to these findings before the next hearing scheduled on 21 April.
Based on the CEC’s initial findings, operations at some 10-15 mines in the region have already been suspended. Representing the interests of the local mining lobby, the FIMI South is arguing that a blanket suspension of all mining operations in the region is uncalled for.
For instance, the CEC noted that some miners have been operating beyond the permitted geographic boundaries of their mines. However, the FIMI South is arguing that in some cases, the mining boundaries may have been inaccurately defined by the state government itself while allotting mining leases.
Consequently, miners who have “erred inadvertently” should not be penalised on the same scale as those who have “intentionally committed gross violations,” a local source tells SBB. Should the Supreme Court call for more detailed investigations, it could take “several months” for the issue to be resolved, he adds.
http://www.indiaglobalcap.com/
Tuesday, April 19, 2011
Karnataka iron ore export volumes could drop 50%
With the Karnataka state government set to begin issuing iron ore export permits from 20 April, local miners and traders expect stringent regulatory procedures and bureaucratic delays to crimp the state’s ore export volumes to just 40-50% of pre-ban levels.
According to The Karnataka (Prevention of Illegal mining, transportation and storage of minerals) Rules, 2011, the state government will issue only one permit to each applicant for transporting up to 4,000 tonnes/day/mine.
Once this cargo is transported from the mine to the port, exporters would need to obtain an acknowledgement receipt from the port authorities. Only after receiving the acknowledgement from the port would the Karnataka government grant a subsequent export permit to the applicant.
“There will be a large time gap between consecutive shipments from each mine,” a local miner tells Steel Business Briefing. “Prior to the ban, we were able to export 300,000-350,000 tonnes of month of ore. Now we may be able to ship out only about 150,000 tonne per month,” he expects.
The state government also intends to clamp down on overladen trucks. “Earlier, trucks capable of carrying 16-17t of ore were loaded with 22-25t. This will no longer be possible,” a Karwar-based source tells SBB. Ore exports from Karnataka would now average 16-20m tonnes/year compared to about nearly 35-40m t/y earlier, he expects.
Though sources grumble that these stringent procedures will constrict ore outflow, they also note that these measures will help curb illegal mining in the state. “The industry stands to benefit from these measures in the long run,” a Bangalore-based exporter notes.
According to The Karnataka (Prevention of Illegal mining, transportation and storage of minerals) Rules, 2011, the state government will issue only one permit to each applicant for transporting up to 4,000 tonnes/day/mine.
Once this cargo is transported from the mine to the port, exporters would need to obtain an acknowledgement receipt from the port authorities. Only after receiving the acknowledgement from the port would the Karnataka government grant a subsequent export permit to the applicant.
“There will be a large time gap between consecutive shipments from each mine,” a local miner tells Steel Business Briefing. “Prior to the ban, we were able to export 300,000-350,000 tonnes of month of ore. Now we may be able to ship out only about 150,000 tonne per month,” he expects.
The state government also intends to clamp down on overladen trucks. “Earlier, trucks capable of carrying 16-17t of ore were loaded with 22-25t. This will no longer be possible,” a Karwar-based source tells SBB. Ore exports from Karnataka would now average 16-20m tonnes/year compared to about nearly 35-40m t/y earlier, he expects.
Though sources grumble that these stringent procedures will constrict ore outflow, they also note that these measures will help curb illegal mining in the state. “The industry stands to benefit from these measures in the long run,” a Bangalore-based exporter notes.
http://www.indiaglobalcap.com/
Monday, April 18, 2011
Vedanta Sees Ore-Export Ban Lifted by Indian Court in May
Vedanta Resources Plc (VED) the largest copper producer in India, expects a ban on iron-ore exports from the country’s Karnataka state to be lifted permanently when the Supreme Court has a hearing in May.
Karnataka, a state in India’s south, barred iron-ore exports last July to increase local supplies of the steelmaking ingredient. This month India’s Supreme Court allowed shipments to restart from April 20. Miners in the state had appealed against the ban. China, the world’s biggest steelmaker, got 14 percent of its iron ore from India in February.
“We feel that going forward the ban will be permanently taken off when the Supreme Court is called for the next hearing in the first week of May,” Prasun Kumar Mukherjee, head of Vedanta’s iron-ore division, said today on a conference call. “We make our plans for the current financial year of 2012 as there will be no restriction on exports.”
Vedanta plans to produce 7 million to 8 million metric tons of iron ore in Karnataka this year, Mukherjee said. Iron ore will account for 37 percent of all dry-bulk goods, including iron ore, thermal coal, grain and minor bulk commodities, hauled at sea this year, Clarkson Plc, the world’s biggest shipbroker, forecast.
The lifting of the Karnataka ban should, in theory, increase the amount of spot cargoes coming from India, Thomas Baldwin, an iron-ore, freight and steel trader with Deutsche Bank AG in London, said in a note yesterday.
“In practice, we’re waiting to see the full impact as increased tariff and transport costs along with a clampdown on the illegal mining activity may mean that the volumes returning to the market are not as great as some predict,” he said.
India plans to increase its export tax on all grades of iron ore to 20 percent in the next financial year. The price of iron ore shipped to China from India has increased 5.1 percent this year.
http://www.indiaglobalcap.com/
Karnataka, a state in India’s south, barred iron-ore exports last July to increase local supplies of the steelmaking ingredient. This month India’s Supreme Court allowed shipments to restart from April 20. Miners in the state had appealed against the ban. China, the world’s biggest steelmaker, got 14 percent of its iron ore from India in February.
“We feel that going forward the ban will be permanently taken off when the Supreme Court is called for the next hearing in the first week of May,” Prasun Kumar Mukherjee, head of Vedanta’s iron-ore division, said today on a conference call. “We make our plans for the current financial year of 2012 as there will be no restriction on exports.”
Vedanta plans to produce 7 million to 8 million metric tons of iron ore in Karnataka this year, Mukherjee said. Iron ore will account for 37 percent of all dry-bulk goods, including iron ore, thermal coal, grain and minor bulk commodities, hauled at sea this year, Clarkson Plc, the world’s biggest shipbroker, forecast.
Higher Taxes
Iron ore shipments from India, the world’s third-largest exporter of the commodity, will probably fall 25 percent in the next financial year following an increase in export taxes, Siddharth Rungta, president of the Federation of Indian Mineral Industries, said on Feb. 28. Overseas sales may decline to 64 million metric tons in the year starting April 1 from a revised forecast of 85 million tons this year, he said.The lifting of the Karnataka ban should, in theory, increase the amount of spot cargoes coming from India, Thomas Baldwin, an iron-ore, freight and steel trader with Deutsche Bank AG in London, said in a note yesterday.
“In practice, we’re waiting to see the full impact as increased tariff and transport costs along with a clampdown on the illegal mining activity may mean that the volumes returning to the market are not as great as some predict,” he said.
India plans to increase its export tax on all grades of iron ore to 20 percent in the next financial year. The price of iron ore shipped to China from India has increased 5.1 percent this year.
http://www.indiaglobalcap.com/
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