July, 25 2005
Steel skid - Is the ONGC-Mittal deal the best possible?
Prima facie, the joint venture between steel king Lakshmi Mittal and public sector oil giant, Oil and Natural Gas Corporation (ONGC), makes no sense.
One is Indias largest oil and gas exploration company. The other is a steel major, the largest in the world. What synergy could they possibly have? Pour oil over a smooth steel surface and what do you get? A surface tailormade for skidding! This could possibly be what awaits the ONGC-deal with the LNM group. To be sure, LNM has proved his credentials in doing business in difficult environments. He has pulled off deal after deal and at a breakneck pace, often in countries where the faint-hearted would hesitate to set foot.
So, if the rationale is to use his skills in oil and gas-rich Kazakhstan to bring home petro-deals, there could be something in it. ONGC has not been able to make a breakthrough in this region. This is not surprising given how these markets function and its constraints as a public sector undertaking (PSU).
The issue, however, is larger than just that. Since most Central Asian countries are run by dictators, there is no surety that assets acquired in these countries will be safe from expropriation during the 25-30 years of an oil deal. If that happens, the taxpayer will end up carrying the can. Which takes us to the basic questionwhat are the levels of risk that PSUs are allowed to take in their pursuit of overseas energy deals and what are the nature of safeguards? More important, what is the tradeoff for LNM prising open the door? For the LNM group, the move helps to diversify its risk in the steel business, by venturing into that of oil and shipping. But has ONGC been able to extract its pound of flesh and in good enough measure?
Unfortunately, ONGC has a legacy of attempting to forge relationships with the corporate world that have been turned down by its owner, the government, as they did not stand up to the test of safeguards prescribed for PSUs. Examples are aplenty hiving off its offshore supply vessels business; getting into the petro-marketing business through a company which did not have PSU colours; entering into a negotiated deal with Statoil for oil rigs, etc.
If the Mittals are going to be stakeholders in the Kazakh deals, it will provide some level of comfort, since the interests of the two parties will be alignedif ONGC loses money, so will Mittal. The difference is that in the latter case the companys shareholders take the rap. In ONGCs case, it is the taxpayer who picks up the tab. And that makes all the difference.
Left raises Posco battle cry
The Left parties have decided to start a nationwide campaign against the memorandum of understanding signed between the Orissa government and South Korean steel major Posco for setting up a 12-million-tonne capacity steel plant in the state.
CPM general secretary Prakash Karat and his CPI counterpart A.B. Bardhan said today the agitation against Posco would be the stepping stone to building national opinion against a proposal to allow 100 per cent foreign direct investment in the mining sector.
The Posco deal is not only harmful for Orissa, but for the country as well. It would mean large-scale displacement, Karat said. The policy is heavily tilted in favour of a few big industrial houses while the poor tribal population pays the price for it, said Karat. The mining policy was the root cause of all disturbances, he said.
Prabhat Patnaik, an economics professor of Jawaharlal Nehru University who was also present, came down heavily on the manner in which mines were leased out to private players. When the question of exploitation of natural resources belonging to people is concerned, the issue should not be left to the mercy of a handful of bureaucrats. He said any investment of the magnitude like the Posco deal must have the appropriate approval of legislators and must be backed by legislation.
Indian Steel Cos now look to make oil out of coal
FOUR leading Indian industrial groups Jindal, Essar, Tata and Bhushan Steel have had exploratory talks with SASOL of South Africa for converting coal into oil, which could become a multi-billion dollar industry.
SASOL, which has operated CTL (coal-to-liquids) plants since the 1950s, reckons that its technology is competitive with oil at $ 40/barrel. The SASOL conversion process also yields chemical by-products (such as olefins and alcohols), carbon dioxide and surplus electricity, and, if these are optimised, the technology might be able to compete with oil even at $25/barrel. However, $40 is a safer benchmark.
Converting coal into oil using the Fischer-Tropsch process was first done on a large scale by Hitler in World War II, when Germany was cut off from global oil supplies. South Africa in 1950 created SASOL for security reasons, to reduce its dependence on imported oil by converting its abundant coal reserves into oil. SASOL steadily improved the technology, but produced costly oil at well above global rates, justified only on security grounds. However, today the price of oil is close to $60/barrel, so SASOLs plants are highly profitable.
SASOL has successfully used coal with 40% ash content. It has examined some samples of Indian coal, and found one of them promising
This yields synthesis gas, which can be used in place of natural gas (which Essar already uses for steel production). Natural gas prices in India are partially controlled, but may one day be totally decontrolled.
In that case synthesis gas from coal may prove much cheaper. SASOL does not licence coal-to-liquids (CTL) technology, but is willing to licence coal-to-gas (CTG) technology.
A standard CTG plant could suffice to feed a steel plant with a capacity of 1.7m tonnes/year
Foreign Cos must not be given access to iron ore
Close on the heels of Korean Steel company POSCO and global steel giant L N Mittal announcing plans to invest in India, Domestic steel producers including Jindal and Essar today asked the Government not to make iron ore available to foreign companies.
A delegation of domestic steel producers, who met Union Steel Minister Ram Vilas Paswan at his residence, protested against iron ore being made available to foreign companies.
They drew the minister's attention to falling prices of steel and also expressed concern over cheap imports from Russia. The delegation also sought his intervention for expediting the signing of mining contracts and urged assured supply of iron ore.
The minister assured the delegation that all their grievances will be examined and asked them to submit a detailed memorandum listing their various demands.
LNM Jharkhand deal soon
The LN Mittal group will sign the MoU for its proposed mega steel project in Jharkhand by the first week of August. As a precursor to the MoU, L N Mittal has met steel minister Ramvilas Paswan today morning to discuss the issue of tying up iron ore mining areas for the proposed project.
We expect to sign the MoU for the steel project in Jharkhand in the next couple of weeks. I have met the steel minister and sought an as-surance on iron ore supply for the project. We also discussed about the proposed national iron ore mining policy being framed by the central government, Mr Mittal told reporters here today.
He, however, did not elaborate on the size or estimated investment for the steel project. Industry sources said the LN Mittal groups pro-posed steel project will have a total capacity of 10 million, with the total investment expected to be in the region of Rs 25,000 crore (a lit-tle over $5 billion). The project is to be completed in phases, with the initial capacity expected to be 5 million which would cost over Rs 15,000 crore
The proposed national policy on iron ore mining is expected to change the conditions for getting iron ore mines for captive purpose. The new policy, it is learnt, may stipulate a minimum capacity of 3.2 million for being eligible for getting iron ore mines.
Metal firms on high over commodity hedging nod
The Reserve Bank of India (RBI), given the comfortable foreign exchange reserves, on Saturday allowed listed companies to hedge price risks in non-agri commodities, barring gold, silver, petroleum and petroleum products, in the international markets.
The apex banks decision will improve local metal companies competitiveness in handling foreign exchange and substantially curb unauthorised forex transactions.
All metal companies would utilise the opportunity by hedging their open positions in international markets, said an executive with a top metal firm.
Metal companies involved in the businesses of steel, copper, aluminium and zinc would start utilising the opportunity as early as possible. The total forex exposure of the metal companies is quite big. For example, steel companies have a combined foreign exposure of Rs 15,000 crore.
An executive with a steel company said most domestic firms now minimise their foreign exchange risk by trading through their associate companies based in Dubai, Singapore, London and New York.
Domestic players apprehensive coal block allotments
Industry captains are apprehensive that the coal ministrys proposal to have competitive bidding process for allocation of captive coal mining blocks for power, steel and cement industries would create serious adverse impact on the prospects of domestic industry, particularly of the steel sector.
Incidentally, such a view is gaining currency among political parties like the CPI(M) and CPI which support the UPA government from outside. They think such blocks should be given to established domestic industry. They apprehend that competitive bidding would give multinational companies scope to use their financial power through their Indian arms to takeover these blocks. This would eventually render coal, Indias major natural resource, under their control and make electricity costlier both for the industry and common man.
Sources said that power and steel companies have already expressed their reservations. Steel companies are making presentations demanding that quality thermal coal blocks should be given to steel makers who have no captive mines.
After iron ore, coal is the most critical input for steel making and about 70% of Indias steel production is dependent on coal, both as a raw material and a source of energy. "We are afraid that the bidding process would severely affect the viability of steel making and captive power generation," said an industry captain.
BOC to supply gas to JSW
BOC India is setting up two air separation units at Bellary in Karnataka and Medak in Andhra Pradesh to penetrate the lucrative southern market.
The company has signed a long-term contract with JSW Steel to supply gas to its steel plant from the Bellary on-site plant in Karnataka.
The producer of industrial gases is also setting up a standalone air separation unit at Medak in Andhra Pradesh. While the Bellary unit will have a capacity of 855 tonnes per day, the Medak unit will produce 65 tpd.
Orissa Govt may not table mining policy now
The State Government may not place the proposed mining policy in the Monsoon session of the Assembly scheduled to start from August 1.
The Steel and Mines Minister informed mediapersons that the meeting decided that it would be prudent to take advice of legal experts on several clauses in the Bill including captive mines, export of iron ore and value addition of minerals before giving it a final shape.
Kamdhenu Ispat group commences production in NE
Kamdhenu Ispat has made inroads into northeast India with the commencment of production at Burnihat in Meghalaya in collaboration with Meghlaya Steels Ltd, owned by Lohia group.
Speaking at a press conference, director Sunil Agarwal said the commencement of production in Meghalaya is in consonance with the company's strategic business plan to enhance the market reach.
The new facility would help the leading reinforcement bar manufacturing company to cater to the whole of northeastern states, he said.
The company targets to tap 25 per cent of market share of the branded steel market of eastern and northeastern India. With this objective in mind, Tripura unit of Meghlaya Steels Ltd. would start its production soon, he said.
The company is all set to produce the Galvasized Steel products especially designed for the coastal areas in the next two years.
The company's turnover expected to increase from Rs 440 crore in 2004-2005 to Rs 900 crore during 2005-06.
Orissa CM appealed to allow farmers to extract iron ore
District Congress Committee Kisan Cell president Kattemane Shivaramappa, in a letter to the Chief Minister, has urged to allow farmers to extract iron ore deposited in their lands. In a letter he had stated that Hospet, Bellary and Sandur taluks are rich in iron ore deposits.
He stated that whenever there is famine, farmers are put to great loss and if they are permitted to extract iron ore deposits so that they can use the proceeds for their welfare.
He stated that Government had passed a GO that bans extraction of iron ore from their farmlands and as a result police and forest department harass farmers if they try to extract iron ore. He appealed to Chief Minister to direct Forest department officials to permit farmers to extract iron ore from their lands and sell it. This will go a long way in helping the farmers financially
Jharkhand lagging behind in attracting investors
Orissa and Chhattisgarh have attracted more investors compared to Jharkhand, though the state government has taken umpteen steps to instill confidence among industrialists, said the task force on power reforms and investment in the state.
"The fact is that still investors feel Orissa and Chhattisgarh as preferred destinations for investment compared to Jharkhand but it could be reversed with exploring new ways," said the member secretary of the task force of Federation of Jharkhand Chamber and Commerce of Industry, Om Prakash.
Presenting theme on investment opportunities in Jharkhand in the context of electricity act, 2003 at a meeting, Prakash said: "Therefore, it is high time for an introspection in our policy, procedure and social condition prevailing in the state".
Mr LN Mittals interview in Delhi
Its been in the air for a while now. Over the past few months, the buzz that LN Mittal is soon going to set his eyes on India was only getting louder. The third-richest man on earth after the Big Bill and bulge-bracket investor Warren Buffet is finally moving in for the kill.
The CEO of Mittal Steel is valued at an eye-popping $25bn thats close to Rs 1,10,000 crore! and is third on the global rich list, rubbing shoulders with the likes of Bill Gates and Warren Buffet.
His $30-bn steel empire has been created largely by buying out underperforming steel plants across the globe and then turning them around. Today, Mittal Steel has a presence in around 14 countries and stretches from Poland to Mexico and Indonesia to South Africa.
His last weekend, however, was spent in Delhi
[b]Excerpts from an exclusive interview with the team of Economic Times : [/b]
[b]Going forward, whats your outlook on the steel sector? [/b]
The steel sector has been volume centric in the past, and prices have been volatile with consolidation taking place across different regions of the world. The year 04 was an excellent one and the industry benefited from the turn of events in China.
This changed recently due to the overhang of inventories in anticipation of the huge projected growth. Industry is now trying to liquidate stocks and cut production to limit the overhang. Apart from Europe, demand has largely been steady in other parts of the world. But with recent developments on demand and minimising of the overhang, things are expected to be better in the fourth quarter
[b]This JV is the first big diversification. What made you choose the oil sector?[/b]
When I looked into the countrys growth plans I felt there were limitations with regard to the growing demand for oil and the need for energy security. ONGC and OVL have been making attempts to secure oil and I believe that as a global player our tie up with the largest domestic oil company would help us achieve Indias quest for oil.This is also my little contribution for my countrys energy security.The main areas of our exploration would be Central Asia and Africa.
[b]Are steel companies looking at India only for securing iron ore needs? [/b]
Investment should be driven by the need for adding steel capacity rather than be directed towards iron ore. The steel sector is growing by 4 % in India which is way below the GDP growth.
[b]It is being said that you followed Posco into India?[/b]
I was largely responsible for promoting India to Posco chief Lee, who is a personal friend as well. And I think that we need more companies to invest in the country to boost steel capacityin India from 35 million to the required 100 million tonne
[b]You are also setting up a steel project in Jharkhand, which would be the groups first real investment in India. What is the status? [/b]
We plan to set up a 10-m-tonne steel plant in Jharkhand, talks for which are in the final stages. We are hopeful of tying up details soon. I am waiting for the national ore policy, which would help us in crystallising our plans. Besides, we have also met the steel minister and are now working on the clearances. We hope to sign the MoU within the next few weeks.
[b]How do you rate steel companies in India. Are there any worth taking them over? [/b]
There are four or five large steel companies in India who are doing well. They are all run by people who have global aspirations even as foreign investors are coming to India. I dont think they are going to put any of them up for sale. So its really a hypothetical question on whether I would like to acquire any of these companies.
[b]What does this diversification into oil mean for you?[/b]
Oil and steel are both volatile commodities which often move in tandem. As the worlds largest steel company we have been a leader in consolidation in that sector and hope to bring our knowledge and experience to the oil market which is also very globalised. As a global player in one commodity, we hope to add the same perspective to the other one, which could also serve as a natural hedge
[b]Are there any plans afoot to enter any of the new economy sectors? Maybe your son or daughter could have expressed an interest there... [/b]
I belong to the old boys club and even my son Aditya is very happy managing the steel business, which also keeps him very busy. My daughter has just joined the company board and I hope to see her getting more and more involved in the existing business. So, I do not think there is anything to announce on the new economy front yet.
[b]You are valued at $25bn....What do you do with so much money? [/b]
All this money is just on paper. If the sector does well then our stocks do well and thats when the valuations go up. After a point it does not matter if its 10bn or 20bn. The wealth has not changed our lives in any way. However, I believe in destiny.
[b]Your yachts and mansions make almost as much news as your acquisitions. How does it feel? [/b]
I really dont give too much thought to such things. Its just some excitement created by the media
[b]You are in the company of Bill Gates and Warren Buffet as the third richest man in the world. Have you ever met them? [/b]
No, we have never met.
[b]Do you have any political leanings and aspirations? [/b]
Since we operate in 14 countries, it would be difficult for us if we get identified with any of the governments or political entities. However, in the UK, I am, in my personal capacity, a supporter of the Labour Party.
[b]How would you compare China, US and India as steel markets?[/b]
China is a market to reckon with, and is emerging as the largest producer and consumer of steel. We recently acquired stake in Chinas Huan Valin Steel Group. The US, on the other hand, is a fairly saturated market. As for India, the demand for steel is 100 MT, while output is currently only 35 MT. Growth of the Indian steel sector last year was just 4%, which fell far short of the GDP growth. India needs far greater investments in steel and Im a big champion for this at all global fora.
Chinas steel policy: clear vision, firm intent
The latest Steel Industry Development Policy drafted by the National Development and Reform Commission and approved by the State Council the other day has strongly advocated consolidation of the Chinese steel industry, currently fragmented and grossly inefficient through mergers and acquisitions and closure of small units.
The policy makers in the country with the largest steel industry seem to have been alarmed by possible consequences of the huge growth in the industry in the past few years with capacity rising from about 100-350 million tonnes in less than a decade. The government wants the investment resources to be engaged on a priority basis to the task of consolidation rather than to add fresh capacity. To discourage birth of new units, the government, has stipulated minimum plant size and capital investment. To encourage only the cash rich and the efficient to invest, the government has set that at least 40% of the project cost to be self funded. This is aimed also to discourage reckless investment out of borrowed funds.
There is a strong fear that if the Chinese steel industry is allowed to grow the way it has so far, the banking sector will lose a lot of money and be forced to carry huge non performing assets with the potential danger of destabilizing the banking sector. The experiences so far in China with the exhibited investment hunger have not been very pleasant.
In a way the government has sought to dispel the soft budget constraint syndrome in the industry. With the envisaged consolidation, the top 10 Chinese steel makers are expected to see their share of production rising from 31% in 2004, to 50% in 2010 and then to 70% by 2020. Currently, only Baosteel and Anshan have production crossing over 10 million tonnes a year.
The government foresees, by 2010, China will have two steel companies with capacities 30 million tonnes each and a few more with 10 million tonnes each. The policy also envisages, in order to reduce transportation costs to the industry, large steel complex growth in the coastal areas in view of the foreseen dependence on imported iron ore.
What is the most unexpected and significant in the policy objectives defined is the fact that the government wants the steel capacity to be developed only to the extent of meeting the domestic demand.
China known for the export orientation of her industry, coming literally to abandon exports as an objective, is a surprise, but the same makes great practical and strategic sense in the context of the countrys overall resource position (with poor iron ore quality), import dependence on the international market for inputs and the urge to move further on to value added industrial production. This should come as a relief to the steel makers in the rest of the world who have feared that continuous growth in Chinese steel output, ahead of internal consumption, would destabilize the global market raising questions on existence of many in the process.
While, it is a good idea to produce just enough for the home market, it is far more complex a problem to develop capacity matching exactly the home demad, even on the aggregate, let alone product by product, grade by grade.
Also, most of the capacities are built on the upturn of the market and are seen as excess capacities in the downturns.
Another surprise element in the policy is that foreign companies with financial prowess and technical leadership only will be encouraged to invest in the steel industry.
They will, however, not be allowed to own controlling stakes. This, in all likelihood, will reduce FDI into this industry. The government does not seem to be overly concerned with the consequences and may be just assured of domestic resources to fund the industrys growth.
Coal Price Likely to Dip in Second Half
Coal prices, after years of going up, are expected to drop slightly in the second half of the year, said industry experts over the weekend.
Petroleum prices, however, rose over the weekend in line with the rise of oil prices on the world market.
Reasons for the possible fall in coal prices include increased production and imports. Plus, more demand could be a factor since the nation's tightened controls of its highly energy-dependent industrial sectors such as steel and petrochemicals have taken effect, said Guo Yuntao, director of the China Coal Industry Development Research Centre (CCIDR), speaking at the China Coal Market Conference 2005 on Saturday.
China's demand for coal is projected to rise by some 150 million tons this year, compared with an estimated annual increase of 200 million tons in coal output for the same period, said Guo.
"The market situation shows coal supplies to date, especially for the country's power generators, have seen a lot of improvement. The more balanced supply and demand in the coal market is likely to result in lower prices," Guo said.
Arcelor rethinks Laiwu Steel stake
Arcelor, the world's second largest steel group, is reconsidering its plans to take a stake worth up to Rmb2bn ($246.6m) in Laiwu Steel after Beijing moved to stop foreign companies from buying control of domestic steelmakers.
The new guideline issued last week by China states that "When foreign companies invest in China's steel industry, in principle, foreign control is not permitted." The policy change is believed to have been driven by Beijing's fears that takeovers by foreign companies could lead to heavy redundancies in an industry that is a large employer.
The guidelines could scupper Arcelor's attempts to strike a deal with Laiwu Steel, a mid-sized producer based in the eastern Chinese province of Shandong, according to people close to the situation.
It is understood Arcelor was interested in buying a majority stake in state-controlled Laiwu Steel, which is listed on the domestic stock market with a capitalisation of about Rmb4bn and is expected to nearly double its capacity of beams used in construction when a Rmb2bn plant opens at the end of this year.
Most foreign companies prefer to have control of their Chinese operations, partly because of the higher financial rewards and partly because domestic companies are often difficult to manage without a majority stake.
People close to the situation said Arcelor had not yet decided whether to settle for a minority stake, walk away from the deal, or try to work round the guidelines.
Although the government blueprint appears to rule out foreign acquisitions, analysts believe there could be some room for manoeuvre.
Stelco management toils to forge accord among clashing interests
Now that Stelco Inc. has released its long-awaited restructuring plan, the company faces the task of selling its strategy to creditors, employees, the government and investors.
Many of the legally insolvent steelmaker's employee groups have already lashed out at the plan, which seeks to fill the company's pension gap by 2015.
Steelworkers representatives at the Lake Erie plant and at Stelco's subsidiaries are supporting Brascan-controlled Tricap Management Ltd.'s bid to refinance the company, citing its $500 million up-front payment into the $1.3-billion pension solvency deficit.
However, the group holding the majority of Hamilton-based Stelco's bonds is firmly opposed to the Tricap plan, which Stelco has already rebuffed. Stelco's plan would make $200 million in initial contributions to the pension deficit, followed by cash payments of $98 million per year.
Neville Coke plant sanctions lauded
Environmentalists and neighbors say they hope new rules imposed by the Allegheny County Health Department on Shenango Inc. will force the chronic air polluter to clean up its Neville Island coke plant.
The health department Friday fined Shenango $252,000 -- the largest ever levied in the department's quarterly fining process -- and ordered the coke works to bake each batch of coal an additional six hours, effective Aug. 1.
Gas Poisoning Kills "at Least" Four Coal Miners in China's Shanxi
At least four miners were poisoned to death by gas at a coal mine in Linfen city of north China's Shanxi Province Saturday night [23 July], local government announced Sunday.
The city's administration on coal mine safety said it has not yet found out the exact number of the miners working underground when the accident happened at 21.55 [local time] Saturday at the coal mine in the Tanghou village of Puxian county.
The coal mine was ordered to suspend operation early this year for lack of safety facilities, according to the administration. A vice-mayor of Wuzhou city has arrived at the site to supervise rescue work. Investigation into the cause of the accident is under way.
Foundation Coal to Expand in Greene County
Pennsylvania Gov. Edward G. Rendell today presented an $800,000 check to James Roberts, CEO of Foundation Coal Corp., for the company's expansion project in Greene County. The state offered the company an $800,000 financial package that includes: a $200,000 Opportunity Grant; $200,000 in Job Training Assistance; and $400,000 in Job Creation Tax Credits.
Foundation Coal will make a substantial equipment investment in its existing Cumberland and Emerald mines, creating at least 100 new jobs within three years and retaining 1,197 existing employees.
Foundation Coal, the nation's fifth largest coal producer, will hire untrained workers, foremen, maintenance workers and laborers. As part of its expansion project, the company will also provide training to all new employees and some of its existing employees. The total cost of the project will be more than $100 million.
Alcoa to invest $400
Friday's announcement of a $400-million modernization upgrade at the Warrick County plant, will also benefit a southern Illinois community, struggling to attract jobs.
Upon its completion the coal mine will fill more than 70 jobs, ultimately pumping in more then $24-million into Friendsville's local economy.
In addition to the $400-million dedicated to the upgrade, Alcoa will invest more than $45-million into a coal mine in Friendsville.
US Railroads trying to meet demand of coal industry
Union Pacific Corp. plans to buy 4,000 new railcars and 315 locomotives to keep up with increasing coal production in Colorado.
"The demand just keeps increasing," said Union Pacific Corp. Energy Marketing Director Dick Hartman. "We're taking more coal out of Colorado than ever before." The company expects coal to increase 10 percent this year.
The North Fork Valley's three mines produce enough coal to fill roughly five trains, with 105 cars each, everyday. At maximum production levels, the three mines in Somerset could mine several million more tons of coal a day than the trains can currently carry.
Union Pacific plans to spend $4 million on new side tracks outside Grand Junction to help take some 500,000 more tons of coal from the mines in Somerset. The railroad also spent 25 million in repairs to the rail lines between Grand Junction and Somerset.
New Generation of Iron Ore Producers Vying to Break Out
As China rapidly and comprehensively establishes itself as steelmaker to the world, old norms in the market for iron ore are beginning to decay, and new producers are aiming to secure themselves a piece of the pie alongside the majors who have traditionally dominated the sector.
Australia figures prominently as a producer in the iron ore industry, with a
favourable political and geological climate and a relatively handy location for China conspiring to make it one of the most attractive regions within which to develop a mining project.
For the same reasons, Canada is also of interest, despite the environmental challenges that may be presented by the locations of the best resources.
Of any selection of early stage mining firms hoping to make it into production, common logic and past precedent suggest that only some will succeed. This applies as much in iron ore as in any other sector.
