Replies to post #6292 on The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Re Magnetation recycling of iron ore scrap (#msg-82518578)

For what its worth, AK Steel's recent prospectus (Nov 2012) for a senior note offering provides additional detail to the Wall Street Journal article concerning Magnetation LLC's iron ore processing operation (see: http://www.sec.gov/Archives/edgar/data/918160/000119312512472613/d436227d424b2.htm ). The information is included in the AKS document because AKS owns 49.9% of Magnetation.

In particular,

The 7M tons of iron ore currently processed by Magnetation results in 1.2M tons of iron ore concentrate.

Expand Magnetation capacity to 3M tons concentrate (or perhaps 6M tons depending how you read the text) is expected to be completed in 2015 at a price that AKS expects will compare favorably to expected market levels.

[Democritus_of_Abdera]

Re: Recycling iron-ore mining waste...

Two months ago, Dew raised the issue of Magnetation extracting iron ore from abandoned mining waste in Minnesota (#msg-82518578).

The Goa government in India is apparently thinking along the same lines (http://www.smetimes.in/smetimes/news/indian-economy-news/2013/Feb/18/goa-mulls-ban-on-fresh-mining-activity80270.html ).

The Goa government is thinking of banning all fresh excavation of iron ore in the state, a top mining official has said in his affidavit filed before the Supreme Court of India. However, in the same affidavit, the BJP-led state government has said that it would, instead, prefer to allow excavation of existing low grade iron ore dumps worth billions.

"I respectfully state that the state government is also contemplating, as of today, to completely ban all fresh excavation of mineral ore," Goa principal secretary (mines) Rajani Kant Varma said in his affidavit, filed in response to a public interest litigation (PIL) seeking action against rampant illegal mining.... The affidavit, filed before India's apex court Friday, has also claimed that the state government has already confiscated low grade iron ore dumps on revenue and forest lands, which would be publicly auctioned to the highest bidder.

A Goa government survey has estimated that the dumps comprise over 700 million tonnes of iron ore, one of the reasons why three BJP legislators Nilesh Cabral (Curchorem), Ganesh Gaonkar (Sanvordem) and Subhash Faldessai (Sanguem), who have business interests in the mining sector, have been publicly lobbying with the Goa government for harvesting this heap of rejected ore.

While the current international market rate for low grade iron is pegged at $ 125 per million tonne, the value of this mountainous pile of iron ore reject is well worth billions of rupees. And the Goa government in its affidavit claims that the international market has shown increasing demand for low grade ore. Rajani Kant has further said that harvesting of dumps would also ensure that there is no further fresh excavation of iron ore.

Mining has been banned in Goa for over four months now, after the Supreme Court, hearing a petition filed by Prashant Bhushan, announced a probe by a central empowered committee into Goa's Karnataka-like illegal mining scandal.