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1.

Coal India Ltd plans binding bids for coking coal assets

New Delhi: Coal India plans to submit binding bids for acquiring stakes in coking coal assets in Australia and Canada by March 2020. The firm is in the process of appointing merchant bankers for the a ......

  • Australia
  • Administration & Marketing
  • 05 Nov 2019
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Description New Delhi: Coal India plans to submit binding bids for acquiring stakes in coking coal assets in Australia and Canada by March 2020. The firm is in the process of appointing merchant bankers for the assets it has identified. The quantum of stake to be bought would be decided after a due diligence. In Australia, Coal India has shortlisted some working mines, while in Canada, it is targeting ready-to-produce blocks where exploration, land acquisition and environmental approvals have been completed. After detailed preparatory work - which includes due diligence, onsite assessment, along with technical and legal advice - the investment proposal would be put up to its board for approval if the investment is within ?5,000 crore and beyond that the state-run miner would require clearance from the central government. Coal India’s domestic reserves are inadequate to meet India’s demand. “The idea is to import coking coal into India since the country does not have adequate reserves of this category of the fossil fuel which is mainly used in metallurgical industries,” said chairman AK Jha. The plan is to set up coking coal and high-grade thermal coal mining business overseas with a view to acquiring coal resources, producing the fuel and importing it either by opening new mines or through acquisition of equity participation in working mines on production-sharing participation interest basis.
Industry Administration & Marketing
Source https://energy.economictimes.indiatimes.com/news/coal/coal-india-ltd-plans-binding-bids-for-coking-coal-assets/71801600
2.

Japans Mitsui may sell stake in Australia thermal coal mine

TOKYO: Japanese trading firm Mitsui & Co Ltd may sell its stake in an Australia thermal coal mine in the face of growing pressure to divest coal assets amid mounting concerns over climate change, its ......

  • Australia
  • Mining
  • 19 Nov 2018
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Description TOKYO: Japanese trading firm Mitsui & Co Ltd may sell its stake in an Australia thermal coal mine in the face of growing pressure to divest coal assets amid mounting concerns over climate change, its chief executive officer said on Wednesday. "Weve made it clear that we wont invest in new thermal coal mining projects," Mitsui President and Chief Executive Officer Tatsuo Yasunaga told analysts. "We will consider selling our stake in an Australian mine which produces only thermal coal if there is a good opportunity," he said. For Mitsui, Bengalla in Australia is the only coal mine it owns a stake in which produces only thermal coal, a company spokesman said. Mitsui owns 10 percent in the mine. The trading company has said it would trim its thermal coal assets in the long term amid growing pressure worldwide for companies to cut reliance on the fossil fuel, but would continue to invest in coking coal - a key raw material for steel-making. Yasunaga said its thermal coal output from its shareholding may not fall immediately as its Mozambiques Moatize coking coal project is ramping up and producing thermal coal as a byproduct. Its annual coal output, including coking coal, from its shareholding is expected to rise to 14 million tonnes in the year to March 2019, up from 12.8 million tonnes a year earlier, but the figure is projected to fall to 11 million tonnes the following year, according to its document for investors. Rival Marubeni Corp said in September that it would halve its net coal-fired power generating capacity by 2030 to reduce its greenhouse gas emissions. Under a goal unveiled in July, Mitsui also aims to double the ratio of power generating capacity from renewable energy to 30 percent in its total capacity by 2030 while cutting the portion of coal-fired power. The moves come as a growing number of companies and pension funds worldwide are divesting assets or companies that generate revenues from fossil fuels, especially coal. "It will take time and effort to boost renewable energy capacity as each project is small, but we are committed to bring our energy mix (in power generation portfolio) toward more carbon-free direction," Yasunaga said. Mitsuis total net power generating capacity stood at 9.1 GW as of September, with coal-fired power accounting for 22 percent, gas-fired power 62 percent and renewable 16 percent.
Industry Mining
Source https://energy.economictimes.indiatimes.com/news/coal/japans-mitsui-may-sell-stake-in-australia-thermal-coal-mine/66445702
3.

Coal India to commission 18 new washeries by December 2020

New Delhi: State-run miner Coal India Ltd (CIL) is planning to construct 18 new washeries by 2020 including nine for processing of coking and the other nine for meant for non-coking coal. “Two of th ......

  • India
  • services
  • 03 Oct 2018
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Description New Delhi: State-run miner Coal India Ltd (CIL) is planning to construct 18 new washeries by 2020 including nine for processing of coking and the other nine for meant for non-coking coal. “Two of these washeries have already been inaugurated in Bharat Coal Coalfields and the rest are going to come up in a phased manner till December 2020. This will add a capacity of around 28.1 million tonnes (MT) for coking coal and 67.5 MT for non-coking coal,” Anindya Sinha, Advisor-Projects at the coal ministry said at an industry event here. CIL is currently operating 15 coal washeries with a total capacity of 36.8 MT per year. Of these, 11 are coking and the rest are non-coking projects with a capacity of 20.58 and 16.22 MT per year, respectively. The total washed coal production from the existing washeries stood at 12.45 million tonnes last financial year. The company said in its latest annual report the major bottlenecks for setting up of these projects include availability of land and environmental clearances. Failure of L1 bidders to comply to tender requirements, in addition to the absence of firm commitment from the intended customers regarding acceptance of washed coal at value-added prices, is also a challenge. Sinha also said CIL has signed a pact with Indian Council of Forestry Research and Education (ICFRE) for an environmental auditing system and the council has already audited around 20 coal mines of CIL and aims to complete all the mines within the current year. Coal India has also conceived setting up a project for conversion of coal to methanol in Dankuni, West Bengal. “It has been on the approval stage. In each state, around 100 tonne of productive methanol plants are conceived in different areas,” Sinha said. Methanol to be produced at the Dankuni Coal Complex is expected to find a market in the eastern states.
Industry services
Source https://energy.economictimes.indiatimes.com/news/coal/coal-india-to-commission-18-new-washeries-by-december-2020/65978168
4.

Coal India to commission 18 new washeries by December 2020

New Delhi: State-run miner Coal India Ltd (CIL) is planning to construct 18 new washeries by 2020 including nine for processing of coking and the other nine for meant for non-coking coal. “Two of th ......

  • India
  • services
  • 03 Oct 2018
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Description New Delhi: State-run miner Coal India Ltd (CIL) is planning to construct 18 new washeries by 2020 including nine for processing of coking and the other nine for meant for non-coking coal. “Two of these washeries have already been inaugurated in Bharat Coal Coalfields and the rest are going to come up in a phased manner till December 2020. This will add a capacity of around 28.1 million tonnes (MT) for coking coal and 67.5 MT for non-coking coal,” Anindya Sinha, Advisor-Projects at the coal ministry said at an industry event here. CIL is currently operating 15 coal washeries with a total capacity of 36.8 MT per year. Of these, 11 are coking and the rest are non-coking projects with a capacity of 20.58 and 16.22 MT per year, respectively. The total washed coal production from the existing washeries stood at 12.45 million tonnes last financial year. The company said in its latest annual report the major bottlenecks for setting up of these projects include availability of land and environmental clearances. Failure of L1 bidders to comply to tender requirements, in addition to the absence of firm commitment from the intended customers regarding acceptance of washed coal at value-added prices, is also a challenge. Sinha also said CIL has signed a pact with Indian Council of Forestry Research and Education (ICFRE) for an environmental auditing system and the council has already audited around 20 coal mines of CIL and aims to complete all the mines within the current year. Coal India has also conceived setting up a project for conversion of coal to methanol in Dankuni, West Bengal. “It has been on the approval stage. In each state, around 100 tonne of productive methanol plants are conceived in different areas,” Sinha said. Methanol to be produced at the Dankuni Coal Complex is expected to find a market in the eastern states.
Industry services
Source https://energy.economictimes.indiatimes.com/news/coal/coal-india-to-commission-18-new-washeries-by-december-2020/65978168
5.

Coal India to sell 4.65 mt coal a year to cement cos via e-auctions

New Delhi: Coal India will supply 4.65 million tonnes of coal a year for the cement industry for five years through e-auctions starting Tuesday, a senior Coal India executive said. It had recently of ......

  • India
  • services
  • 16 Aug 2018
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Description New Delhi: Coal India will supply 4.65 million tonnes of coal a year for the cement industry for five years through e-auctions starting Tuesday, a senior Coal India executive said. It had recently offered 7 million tonnes to sponge iron firms, and received bids that were 39% higher than the notified price for the non-power sector. The company hopes to garner similar premiums from cement producers as the sector faces a shortfall as coal was diverted to fuel-starved power plants. According to the Coal India executive, of the 4.65 million tonnes on offer annually, 1.14 million tonnes can be procured each year through the railways, while the rest 3.51 mt would be supplied through roadways. Coal India subsidiary South Eastern Coalfields will offer the highest quantity for the auction at 3.25 million tonnes per annum, of which 1 million tonnes would be through the railways and the rest 2.25 million tonnes through roadways every year for the contract period. This subsidiary is offering almost 70% of the total coal on offer in the auction by subsidiaries participating in the auction. Western Coalfields’ plan includes offering 7.96 lakh tonnes annually, all of which would be through roadways followed by Central Coalfields and Northern Coalfields each offering 2 lakh tonnes annually through roadways only. Western Coalfields would be offering 17% of the total coal. Mahanadi Coalfields, however, has firmed up plans to offer 90,000 tonnes annually through the railways and an additional 49,500 tonnes through roadways each year, totalling 1.39 lakh tonnes every year. Eastern Coalfields’ plan involves offering 50,000 tonnes annually through the railways and an additional 20,000 tonnes through roadways every year, totalling 70,000 tonnes. Bharat Coking Coal and North Eastern Coalfields will not be participating in this auction since they are not offering any coal to the segment. Auctions would be held for 11days in a row through 32 separate auctions and on offer are 11 grades of coal from G3 to G13.
Industry services
Source https://energy.economictimes.indiatimes.com/news/coal/coal-india-to-sell-4-65-mt-coal-a-year-to-cement-cos-via-e-auctions/65303272
6.

China to fund Moatize-Macuse Railway project in Mozambique

The Moatize-Macuse Railway Logistics Corridor, which is the largest infrastructure project in Mozambique, has reached its final stage, with the launch scheduled for 2019 and completion in 2022. This ......

  • Mozambique
  • services
  • 13 Aug 2018
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Description The Moatize-Macuse Railway Logistics Corridor, which is the largest infrastructure project in Mozambique, has reached its final stage, with the launch scheduled for 2019 and completion in 2022. This is according to the new newsletter, China-Lusophone Brief (CLBrief). The 639 km railway will transport coal from the mines of Moatize and Chitima in Tete to a new floating coal terminal off the coast at Macuse, Zambezia, just north of Quelimane. Also read: Mozambique’s North -South highway to commence rehabilitation work soon Project consortium The consortium is led by Thai Mozambique Logistica (TML), a subsidiary of the Ital-Thai Development (ITD) of Thailand, which won the project in 2013, and holds 60% of the capital. The TML will be financed exclusively by Chinese capital through public banks targeting Africa, and China Export & Credit Insurance Corporation (Sinosure) based in Beijing, according to CLBrief. The World Bank, through the Multilateral Investment Guarantee Agency (MIGA) covers the political risk of such an investment. Mota Engil Mozambique and China National Complete Engineering Corporation, a subsidiary of the China Machinery Engineering Corporation, are the signed contractors in charge of the project. Local owners with 20% each are Mozambique railways (Caminhos de Ferro de Mocambique, CFM) and the Corredor de Desenvolvimento Integrado do Zambeze (Codiza). Local owners of Codiza are said to include Graca Machel; Olivia Machel, a daughter of Samora Machel; and Salimo Abdula, who often represented former President Armando Guebuza’s business interests. Coal prices have doubled since their low two years ago, reaching US $100/tonne for thermal coal and US $175/t for coking coal. Most coal is now exported via Nacala along a railway that is almost twice as long as the proposed Macuse line, and it costs more than US $50/t to ship the coal by railway. The shorter Macuse line will cut that substantially, making thermal coal profitable again.
Industry services
Source https://constructionreviewonline.com/2018/08/china-to-fund-moatize-macuse-railway-project-in-mozambique/
7.

Oil Prices Edge Lower As Output Freeze Hopes Fizzle Again

After yesterday's accord between Saudi Arabia and Russia ignited an effervescent oil rally, we have now seen these hopes fizzle out once more. As the 'task force' agreement references no crimping of p ......

  • Saudi Arabia
  • Oil & Gas
  • 15 Oct 2016
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Description After yesterday's accord between Saudi Arabia and Russia ignited an effervescent oil rally, we have now seen these hopes fizzle out once more. As the 'task force' agreement references no crimping of production levels, prices are now heading lower from Friday's close. Hark, here are five things to consider in energy markets today:

1) While we are seemingly on a perpetual treadmill of production freeze talk, it is refreshing to hear that new OPEC member Indonesia is comfortable with crude prices between $40 - $50. Its economy remains in fairly rude health, with the IMF projecting its economy will grow at just shy of 5 percent this year, and just above that next year.

It is the only cartel member in Asia-Pacific, exporting $6.4 billion of petroleum last year, and is the largest economy in South East Asia. The leading recipients of its oil this year are China, Japan, U.S., Australia and Thailand:

2) Last week we discussed how oil imports into northern China have been slowing due to lesser demand from China's independent refiners, or 'teapots'. The chart below helps to illustrate this point: the run rates for these teapots have been dropping in recent months, and are now running at their slowest pace in more than seven months.

While part of this slowing is due to congestion and a lack of storage capacity, lower profits and higher fuel-quality standards may also crimp activity going forward. An immediate threat comes in the form of a tax crackdown, as authorities look to crack down on teapot refiners evading taxes or falsifying documents. As regulations are set to increase, processing is expected to slow further.

3) The oil market is perpetually fascinating, given there are so many different ways it can be interpreted. This is illustrated brilliantly today through these two contrasting headlines: 'no sign oil market is rebalancing' and 'oil market is already rebalanced'. We believe it is neither...it is somewhere in between.

4) Coal is seeing both a resurgence in trading volume and price across the globe, giving us tentative signs of rising commodity demand going forward. While trading volumes have surged in Europe, up nearly 50 percent in the first half of the year to 3.5 billion tonnes, the price of Australia's coking coal has rallied more than 45 percent in the last three weeks, boosted by rising Chinese demand.

A drop in domestic Chinese coal production has also ignited the recent rally; a limit on the number of days that miners can work, in combination with heavy rains and flooding, has helped crimp output. According to customs data, Chinese coal imports are up 12 percent through the first seven months of the year. As the chart below illustrates, Chinese crude-steel output has consistently been above year-ago levels in 2016. It is estimated that 770 kilograms of coal is needed to producer one ton of steel.

5) Finally, I made a last-minute Labor Day appearance on CNBC Asia yesterday evening to react to the latest developments betwixt Saudi and Russia. You can catch a snippet of part of the interview here.
Industry Oil & Gas
Source http://oilprice.com/Energy/Energy-General/Oil-Prices-Edge-Lower-As-Output-Freeze-Hopes-Fizzle-Again.html
8.

Aspire Mining Ltd receives interest from China Development Bank to fund railway

Aspire Mining Ltd (ASX:AKM) has received an expression of interest (EOI) from China Development Bank to fund up to 75% of the engineering, procurement and construction contract to build the Erdenet to ......

  • Australia
  • Railways
  • 15 Oct 2016
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Description Aspire Mining Ltd (ASX:AKM) has received an expression of interest (EOI) from China Development Bank to fund up to 75% of the engineering, procurement and construction contract to build the Erdenet to Ovoot Railway in Northern Mongolia.

The EOI comes after the Erdenet to Ovoot Railway was recently included in the new Northern Rail Corridor which is to connect China and Russia through Mongolia.

CDB intends to provide a non-binding term sheet in relation to the provision of a long term debt facility subject to being satisfied with the first stage of the bankable feasibility study.

Aspire is the largest coal tenement holder in Mongolia’s Northern provinces and is the 100% owner of the Ovoot Coking Coal Project which is the second largest coking coal project by reserves in Mongolia.

The Ovoot project development is dependent on the construction of the Erdenet to Ovoot railway which is being progressed by Aspire’s subsidiary Northern Railways.

China Development Bank

China Development Bank (CDB) is a Chinese Government owned policy financial institution that provides medium to long term financing facilities that serve China’s long term economic and social development strategies.

CDB notes that it is the world’s largest development finance institution and the largest Chinese Bank for foreign investment and financing cooperation, long term lending and bond issuance.

It was ranked 87 Fortune Global 500 in 2015.

Erdenet to Ovoot Railway

Production from the Ovoot project can coincide with the commissioning of the Erdenet to Ovoot railway.

Aspire recently commenced the first stage of the rail feasibility study to extend Mongolia’s national rail network from the city of Erdenet to its flagship Ovoot Coking Coal Project in Mongolia.

The 547 kilometre extension has recently been included in a new Northern Rail Economic Corridor connecting China and Russia through Mongolia as part of China’s One Belt One Road Policy.

Northern Railways has formed a consortium with two subsidiaries of China Railways Corporation to progress the development of the Erdenet to Ovoot railway – China Railways 20 Bureau Group Corporation (CR20G) and China Railway First Design Survey and Design Institute (FSDI).

CR20G is the nominated engineering, procurement and construction contractor and FSDI has been contracted to undertake the bankable feasibility study.

FSDI has commenced the first stage of a bankable feasibility study, which is due for completion by 31 December 2016.

Analysis

The EOI received from CBD confirms the importance and value of the Erdenet to Ovoot railway being included in the recently announced Northern Rail Economic Corridor.

This interest from CBD increases the certainty of the railway’s construction required for the development of Ovoot, which in turn can unlock value for shareholders.

Subject to the completion of a feasibility study, the Erdenet to Ovoot railway may receive priority funding from China’s Policy Banks, Sinosure, Asian Infrastructure Investment Bank (AIIB) and funds such as the Silk Road Fund.

The stock is up 55% intra-day trading at $0.028 and 150% year to date.

Aspire’s inclusion in the Economic Corridor in late June has been a key price catalyst for the stock.
Industry Railways
Source http://www.proactiveinvestors.com.au/companies/news/70883/aspire-mining-ltd-receives-interest-from-china-development-bank-to-fund-railway-70883.html
9.

Coking coal deal frenzy has further to go: Taurus Funds Management

A "once in a generation" turnover of the Australian coal sector has further to run, according to one of the driving forces behind two recent acquisitions, Taurus Funds Management. Fresh from finali ......

  • Australia
  • Mining
  • 15 Oct 2016
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Description A "once in a generation" turnover of the Australian coal sector has further to run, according to one of the driving forces behind two recent acquisitions, Taurus Funds Management.

Fresh from finalising the purchase of Anglo American's Foxleigh coking coal mine, Taurus principal Gordon Galt said the firm was bullish about the long-term outlook for coking coal and the prospects of the new breed of small companies that have acquired mines during the recent cyclical low.

Taurus lent $US42 million to Stanmore Coal to help it buy Vale's Isaac Plains mine in Queensland for $1 plus contractual obligations in July 2015.

In April Taurus agreed to pay an undisclosed sum for Foxleigh before vending it into Realm Resources, which is 87.8 per cent owned by Taurus and has debt facilities worth about $180 million from Taurus.

Realm indicated in recent days that Anglo was paid $43.7 million in cash and $85.3 million in bank guarantees under the Foxleigh transaction.

Both acquisitions appear to be well timed, with the sale prices being agreed before coking coal prices surged by 40 per cent in the past month to levels not seen since 2013.

The acquisitions are also indicative of the fragmentation of the local coal industry, which has seen struggling multinational miners sell almost a dozen marginal mines to small, single-mine companies.

"The aggregators are breaking up and sending them back towards people who want to buy them," Mr Galt said.

Taurus was a surprise buyer of Foxleigh, given the $1.5 billion funds manager is better known as an equity investor and lender of last resort to high-risk junior miners.

Mr Galt said the equity and debt sides of Taurus were not always aligned on strategy, but he said the organisation was generally a subscriber to the notion that finite supplies of coking coal would continue to be in demand for steel production, particularly after 2021 when supply of coal is expected to decrease.

That view is broadly similar to the outlook recently shared by BHP Billiton, which is understood to have bid for Anglo American's Moranbah North and Grosvenor coking coal assets

"People don't concentrate on how much coal goes out," Mr Galt said, in a reference to depleting coal reserves.

"Tens of millions of tonnes of high-quality coking coal are no longer there and you've got to get it from somewhere ... the mills still want their coal.

"No money has been poured into exploration so nothing has happened there, you have negative movements delaying permitting and many other things, so we think it is a great opportunity."

Mr Galt said the recent transactions would not be the last, and the large number of assets on the market was making it a good time to buy.

"Anglo is selling all its assets, Vale is selling all its assets, and Peabody is selling quite a few of its assets, so there are a lot of these things on the market," he said.

"I don't think they [opportunities to buy assets cheaply] come along every decade."

The comments come just days after Street Talk revealed that Glencore was sniffing around Rio Tinto's Australian coal mines again, while Rio was considering packaging up its coking coal mines like Kestrel with its thermal coal mines in NSW.

Coking coal prices have surged by 88 per cent over the past seven months on the back of new restrictions on Chinese coal miners that have reduced the number of operating days from 330 per year to 276 days.

As one of the world's biggest producers of coking coal, BHP has more to gain from the price surge than most, but the company believes prices for the steel-making ingredient have overshot their range, and will slide lower before the end of the year.

The remaining 30 per cent of Foxleigh is owned by two of the mine's major customers: Korean steelmaker POSCO and Japanese steelmaker Nippon Steel & Sumitomo Metal.
Industry Mining
Source http://www.afr.com/business/mining/coking-coal-deal-frenzy-has-further-to-go-taurus-funds-management-20160904-gr89hu
10.

Steel prices may rise by ?2,000-2,500 a tonne

Steel prices are likely to go up by ?2,000-2,500 a tonne starting September with the sharp rise in raw material cost and signs of a revival in demand. Currently, the basic steel varieties of hot ro ......

  • India
  • Metals & Minerals
  • 03 Sep 2016
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Description Steel prices are likely to go up by ?2,000-2,500 a tonne starting September with the sharp rise in raw material cost and signs of a revival in demand.

Currently, the basic steel varieties of hot rolled coil (HRC) and cold rolled coil (CRC) are priced at ?35,000 a tonne and ?40,000 a tonne (including excise duty of 12.5 per cent), respectively.

Large steel makers, including JSW Steel, Essar Steel, Steel Authority of India and Tata Steel, revise prices monthly though they offer special discounts to buyers with large orders.

Key factors
Steel production cost has gone up ?5,000 a tonne in the last eight months with coking coal prices touching $127 a tonne now from $75 in January and zinc costs 50 per cent higher at $2,215 a tonne, said a senior JSW Steel official.

Iron ore prices are up 45 per cent at ?61 a tonne while the 19 per cent increase in the Railways freight rate will lead to additional cost of ?300 crore a year. “We have no other option but to pass on the incremental cost to consumers by increasing prices by ?2,500 a tonne,” he said.

H Shivramkrishnan, Director (Commercial), Essar Steel, said the industry has been adversely impacted by increasing cost of inputs such as metcoke and corex coal that have gone up to $215 a tonne ($140 a tonne) and $110 a tonne ($85 a tonne).

The provisional levy of anti-dumping duty on HRC (hot-rolled coil) and CRC (cold-rolled coil) imports for six months and extension of MIP (minimum import price) on select steel products for two months has given enough room for steel companies to hike prices even amidst weak demand.

Earlier this month, the Centre under the garb of anti-dumping duty fixed MIP of $474 a tonne on HRC and $557 a tonne on HR sheets and plates imported from China, Japan, South Korea, Russia, Brazil and Indonesia.

Similarly, the anti-dumping duty on CRC will be the difference between $594 a tonne and “landed value” of imports from China, South Korea, Japan and Ukraine.
Industry Metals & Minerals
Source http://www.thehindubusinessline.com/economy/steel-prices-may-rise-by-20002500-a-tonne/article9051309.ece

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