mineral and metal update

MONTHLY REPORT SEPTEMBER 2021

MINERAL AND METAL UPDATE

J . M . B A X I . & C O .

M A R I N E S E R V I C E S

Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is provided only in good faith.

India hikes iron ore GST to 18pc to streamline duty

Naveen Jindal hails Odisha’s ‘industry-friendly’ policies; JSPL to participate in next iron ore block auction

Anil Agarwal’s Vedanta commits to Invest $20 billion across its businesses

Runaya sets up integrated aluminium dross processing unit in Odisha

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PORT ANALYSIS

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ORE AND MINERALS TRAFFIC AT INDIAN PORTS (QTY IN MT)

PORT NAME APR- JULY - 21 APR - JULY -20 VARIANCE Y-O-Y

BEDI 0 50250 -50250

BHAVNAGAR 330347 214685 115662

CHENNAI 419398 795869 -376471

COCHIN 59750 63022 -3272

DAHEJ 405784.6 343026 62758.59

DHAMRA 3478499 3288524 189974.9

DHARAMTAR 2924818 2680127 244691

ENNORE 139500 80700 58800

GANGAVARAM 4099239 4069586 29653

GOPALPUR 3464110 1872846 1591264

HALDIA 2425270 2523290 -98019.2

HAZIRA 4495652 684962 3810690

JAIGAD 681246 51587 629659

KAKINADA 921784 862695 59089

KANDLA 2087555 1676759 410796.2

KARAIKAL 299504 76800 222704

KATTUPALLI 40220 11800 28420

KOLKATA 5500 0 5500

KRISHNAPATNAM 1424398 335725 1088673

MAGDALLA 157706 2359547 -2201841

MANGALORE 1942326 1737118 205208

MORMUGAO 2099728 2439382 -339654

MUMBAI 214998 77220 137778

MUNDRA 1511208 1474120 37088

NAVLAKHI 61250 268810 -207560

OKHA 271285 165960 105325

PARADIP 10340001 10325870 14131

PIPAVAV 499862 458186 41676

PORBANDAR 354788 152414 202374

SAGAR ROADS 30254 0 30254

TUNA 59950 163350 -103400

TUTICORIN 526274 334238 192036

VISAKHAPATNAM 7978988 6703495 1275493

Grand Total 53751193 46444155 7307038

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Exporters of Ores and Minerals from India(August 2021 ) (Qty in MT)

EXPORTERS CARGO QTY

ARCHEAN CHEMICAL INDUS. PVT. LTD. INDUSTRIAL SALT 399650

ASHAPURA MINCHEM LTD. BENTONITE 48000

ASHAPURA MINES CO. BENTONITE 7500

BAGADIA BROTHERS IRON ORE FINES 86100

BHUSHAN POWER AND STEEL LTD. PIG IRON 49811

BS METALS IRON ORE 50650

EMPRADA MINES AND MINERALS PVT. LTD. BARYTES 60000

GIMPEX INTL. BARYTES 52000

GIMPEX PVT. LTD. FELDSPAR 11000

GUJARAT CREDO MINERAL INDUS. BAUXITE 55000

IMERYS CERMICS INDIA PVT. LTD. FELDSPAR 18700

INDIAN RARE EARTHS LTD. ILMENITE SAND 41000

IRONIDE MINERALS LTD. IRON ORE PELLETS 54100

JINDAL SAW LTD. IRON ORE FINES 50000

JINDAL STEEL AND POWER LTD. IRON ORE FINES 60500

IRON ORE PELLETS 68020

PIG IRON 86890

JSW DOLVI CO. IRON ORE 51550

JSW STEEL LTD. PIG IRON 49500

JSW TECHNO PROJECTS MGMT. LTD IRON ORE PELLETS 85000

KASHVI POWER PVT. LTD. IRON ORE FINES 54000

NATIONAL ALUMINIUM CO. LTD ALUMINA (BAG) 30600

ALUMINA (BULK) 91800

OMM SACHCHIYA INTL. DOLOMITE 5100

ORISSA METALIKS PVT. LTD. IRON ORE PELLETS 59306

PIG IRON 28725

PRISHA IMPEX LTD. FELDSPAR 9000

RASHTRIYA ISPAT NIGAM LTD. PIG IRON 30000

RUNGTA SONS PVT. LTD. IRON ORE 62800

IRON ORE FINES 105011

SHREE BAJRANG POWER & ISPAT LTD. IRON ORE PELLETS 55000

SINGHVI TRADELINK LLP MILL SCALE 45500

SLNS MINERALS PVT. LTD. BENTONITE 9600

SRI RADHA DAMODHAR EXPORTERS IRON ORE FINES 75000

SRI SAINATH INDUSTRIES LTD. MILL SCALE 23774

TAIKO CHANDER NAGAR CHEMICAL PVT. LTD. BENTONITE 9500

FULLERS EARTH 15000

TATA STEEL BSL LTD. SLAG 54800

TATA STEEL LTD. FERRO CHROME 9443

TATA STEEL MINING LTD. FERRO CHROME 5200

THRIVENI EARTHMOVERS PVT. LTD. IRON ORE PELLETS 111600

TRIMEX MINERALS PVT. LTD. BARYTES 55000

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Country Wise Export of Ores and Minerals from India(August - 2021) (Qty in MT)

Destination Country CARGO QTY

BANGLADESH DOLOMITE 5100

FELDSPAR 38700

INDUSTRIAL SALT 51300


SLAG 54800

BELGIUM BAUXITE 55000

CHINA ILMENITE SAND 41000

IRON ORE 114350



PIG IRON 56890

INDONESIA BENTONITE 19100

FERRO CHROME 9443

JAPAN FERRO CHROME 5200

MALAYSIA ALUMINA (BAG) 30600

FULLERS EARTH 15000


MILL SCALE 28800

MOZAMBIQUE BENTONITE 7500

OMAN ALUMINA (BULK) 30600

PIG IRON 30000

SAUDI ARABIA BARYTES 52000

SINGAPORE BENTONITE 48000

INDUSTRIAL SALT 348350

IRON ORE 50650

PIG IRON 28725

SRI LANKA PIG IRON 49500

TAIWAN PIG IRON 30000

U.A.E. ALUMINA (BULK) 61200

BARYTES 55000

UNITED STATES BARYTES 60000

PIG IRON 49811

VIETNAM MILL SCALE 40474

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Country Wise Import of Ores and Minerals to India(August - 2021) (Qty in MT)

Origin Country CARGO QTY

AUSTRALIA ALUMINA (BULK) 60000

IRON ORE 48800

MANGANESE ORE 19782

BANGLADESH MILL SCALE 47170

BRAZIL MANGANESE ORE 44026

CHILE COPPER CONCENTRATES 111535

GABON MANGANESE ORE 81310

INDONESIA ALUMINA (BULK) 93608

COPPER CONCENTRATES 25000

IRAN GYPSUM 54500

JAPAN NICKEL COBALT MIXED HYDROXIDE CON-CENTRATE 2.903

MALAYSIA LIME STONE 36200

MOZAMBIQUE ILMENITE SAND 21005

OMAN GYPSUM 331580

LIME STONE 222325

SAUDI ARABIA GYPSUM 19993

SOUTH AFRICA MANGANESE ORE 275562

THAILAND DOLOMITE 45000

TURKEY MANGANESE ORE 4900

U.A.E. LIME STONE 1901562

UNITED STATES ILMENITE SAND 25000

SODA ASH 20000

VIETNAM ALUMINA (BAG) 5511

ALUMINA (BULK) 50400

LIME STONE 23089

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MARKET OVERVIEW & TRENDS

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INDIA HIKES IRON ORE GST TO 18PC TO STREAMLINE DUTY

- The country’s GST council in its 45th meeting increased the GST on ores and concentrates of metals such as iron, copper, aluminum, zinc and few others to 18pc from 5pc.

India has raised the goods and services tax (GST) for iron ore from 5pc to 18pc to amend the inverted duty structure in the industry, but the government has not finalised a date on the implementation. The country’s GST council in its 45th meeting increased the GST on ores and concentrates of metals such as iron, copper, aluminum, zinc and few others to 18pc from 5pc. For ore and specified metals, due to the inverted duty structure anomalies on services, a correction will help the industry, India’s Finance minister Nirmala Sitharaman said in the post GST meeting address last week, adding “but we have not decided on a date on that”. An inverted duty structure occurs when tax on inputs exceeds that of the output. Iron ore miners pay 18pc GST for supply of services, while the GST on processed iron ore sale is 5pc. The GST on steel products is 18pc. The GST hike will increase steel companies’ working capital requirement initially, a senior official from a steel company said, adding that steel mills will have to pay an 18pc GST upfront to buy the ore, from the current 5pc. There will be a gap in the realisation given the time difference when procuring the ore and when the sale was made. “Major advantage will be to the people those who have captive mines in one state and they were taking material to different states,” JSPL’s managing director VR Sharma told Argus. He also said thatwhile the companies were paying 18pc GST for the mining operations, they were only able to take input credit of 5pc after the sale, these companies will now be able to take the full 18pc credit in their respective states. Market experts said the tax increase will not lift steel prices and is a welcome move as this will streamline the process. The higher GST is positive for mining companies as they currently incur 18pc GST on services associated with mining operations but ore is sold to steel mills at 5pc GST, Ritabrata Ghosh, assistant vice-president of Icra Research said. “Steel prices will not have an impact, this step is just to streamline the process.”

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Source: Argus Media

NAVEEN JINDAL HAILS ODISHA’S ‘INDUSTRY-FRIENDLY’ POLICIES; JSPL TO PARTICIPATE IN NEXT IRON ORE BLOCK AUCTION

- Naveen Jindal, after meeting Chief Secretary S C Mohapatra, expressed confidence upon the state’s “industry-friendly” policies. He also hailed the pre-emption policy for ensuring raw materials to local steel industries.

Jindal Steel & Power Ltd Chairman Naveen Jindal on Sunday lauded the efforts of the Odisha government to conduct the upcoming auction of iron ore blocks in a transparent manner and said the company will participate in it. Jindal, after meeting Chief Secretary S C Mohapatra, expressed confidence upon the state’s “industry-friendly” policies. He also hailed the pre-emption policy for ensuring raw materials to local steel industries. Replying to a question, Managing Director V R Sharma said, “JSPL will participate in the forthcoming auction of iron ore mines in Odisha. Irrespective of the auction’s outcome, we are confident the state government would make all out efforts to protect the raw material security for industrial units in the state.” The Odisha government had last month issued a Notice Inviting Tender (NIT) for online auction of 11 more mining blocks, including seven virgin blocks. JSPL is the largest investor in the state in the iron and steel sector with an investment of more than Rs 45,000 crore. “In the next 10 years, the company would increase its investment in Odisha to more than Rs 1,00,000 crore. The expansion is expected to generate enormous economic activity and employment opportunities in the state,” Jindal said. He also expressed gratitude to the state government for approving the proposed expansion of its Angul steel plant to 25.2 MTPA from 6 MTPA by 2030.

Source: Economic Times

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ANIL AGARWAL’S VEDANTA COMMITS TO INVEST $20 BILLION ACROSS ITS BUSINESSES

- With the outlook for mineral-led growth looking robust, we at Vedanta are committed to nation building and to bring in future investments of up to USD 20 billion across our businesses, which will play a crucial role in the overall economic growth,” he said.

Vedanta Chairman Anil Agarwal on Tuesday said that the company is committed to bring in future investments of up to USD 20 billion dollar across its businesses. Agarwal was addressing the shareholders during 56th Annual General Meeting of the company. “With the outlook for mineral-led growth looking robust, we at Vedanta are committed to nation building and to bring in future investments of up to USD 20 billion across our businesses, which will play a crucial role in the overall economic growth,” he said. The company aims to double its production of silver, which is not only a precious metal but has uses in high-tech industry and renewable energy. In steel, which is a significant component of its business, the company intends to double its capacity. “The demand for oil in absolute terms will continue to rise for many years and we are committed to increasing our domestic production in oil and gas by up to 50 per cent,” Agarwal said. The proposed amendment of retrospective income tax, he said, is a welcome step and “will have a positive impact on our group. It shall resolve major ongoing tax litigations amounting to approximately Rs 22,000 crore.” Stating that India is at the cusp of an economic transformation, he said that in the coming years, the nation will grow from a USD 2.6 trillion economy to a USD 5 trillion economy and then a USD 10 trillion economy. Today, mining contributes 1.5 per cent to GDP while metals contribute an additional two per cent. The GDP contribution of mining and metals must double, possibly even treble, he said. “It is the only way to avoid import dependence of the kind we have seen in crude oil. Policy regimes are changing for the good. Fortunately, the government has a clear plan for an Aatmanirbhar Bharat,” he added. The company has contributed Rs 2.7 lakh crore to the exchequer in the past ten years. Vedanta’s operations contribute one per cent to India’s GDP, according to IFC report.

Source: Financial Express

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RUNAYA SETS UP INTEGRATED ALUMINIUM DROSS PROCESSING UNIT IN ODISHA

- The facility is said to provide end-to-end green and sustainable solutions for the recovery of aluminium from dross and processing residual waste to manufacture steel slag conditioners. The steel slag conditioner briquettes have found wide acceptance in steel refining and helped the steel industry in reducing costs and improving productivity.

An aluminium dross processing and refining unit has been established at Odisha’’s Jharsuguda by Runaya, one of the country’s fastest growing manufacturing start-ups. A company official claimed that the unit at Jharsuguda is India’’s first integrated aluminium dross processing unit The facility established at an investment of Rs 64.43 crore was inaugurated by Chief Minister Naveen Patnaik on Friday. This will provide an end-to-end green and sustainable solution for recovery of aluminium from dross and processing residual waste to manufacture steel slag conditioners. “Odisha is fast emerging as the manufacturing hub of Eastern India and has enabled the growth of industries in the state. We have always endeavoured to provide a hassle-free and smooth business environment for the investors in Odisha. I assure continued facilitation and support from the state government,” Patnaik said after inaugurating the project. Aluminium dross is a by-product of the aluminium smelting process and typically ends up in the landfill with no comprehensive solution for its disposal till now. It is estimated that the world produces about 65 million tonne of aluminium per annum currently, which results in about 1 million tonne of aluminium dross being produced every year. In India alone, this number stands at about 60,000 tonne, an official said. The aluminium dross processing and refining plant in Odisha, with a capacity to process 30,000 tonne of aluminium dross per annum, comprehensively addresses one of the biggest challenges faced by the aluminium industry, that relates to handling, evacuation, processing and disposal of hazardous dross in an environmentally friendly manner. Runaya has implemented an innovative and sustainable model to eliminate waste and recover metal through a patented cutting-edge technology to process the mining waste and maximize metal recovery, they said. The depleted dross is further used to manufacture tailor-made steel slag conditioner briquettes, that have found wide acceptance in steel

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refining and helped the steel industry in reducing costs and improving productivity, thus contributing to the manufacture of more sustainable and “greener” steel. By virtue of this process, Runaya claims to contribute in reduction in greenhouse gas emissions and reduction of carbon footprint for the aluminium industry. Runaya is also fully committed to ensuring global ESG standards and implementing inclusivity in all its forms, with an industry-disrupting 60 per cent gender diverse workforce. Annanya Agarwal, Co-Founder & CEO, Runaya said, “Runaya aims to replace the linear economy model that the industry is currently following to pave the way for a circular economy model that is restorative. Through this pioneering technology, which ensures 100 per cent utilization of waste, Runaya’s new facility at Odisha is disrupting the resources industry – currently even the best practices in the industry can only process 50 per cent of waste. Runaya’s breakthrough approach delivers significant positive impact for the mining and metals industry.”

Source: Outlook India

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