Tax payments from Minnesota’s iron ore industry show lower production

The ban on iron ore exported from the state of Karnataka is having downstream effects on the supply of Indian steel, according to a story today in The Hindu Business Line. Quoting sources in the Bellary-Hospet region, the website says before the export of iron ore was banned in Karnataka in 2009, the state was producing about 42 million tonnes of iron ore and exporting 28 million tonnes. The following year, after the ban was implemented, 33.6 mt was produced, of which only 7.4 million tonnes was exported. But if all the iron ore pellets were used for sponge iron, pig iron and steelmaking, 41 million tonnes or iron ore would be required, or 33 million tonnes if the mills run at 80% capacity, leaving a significant supply shortfall, Hindu Business Line explains.

India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India, announced that it has closed on a strategic partnership agreement to provide iron ore to Chinese steel mills.

Leighton Holdings has sold mining services provider HWE Mining to BHP Billiton. 9News reports that Leighton has signed a heads of agreement for the sale of HWE, which accounts for close to 70% of BHP's iron ore mining in Western Australia. The sale is worth $1.1 billion, along with $1.4 billion worth of contracts in hand.

Newfoundland-based Altius Minerals has expanded its exploration agreement with number-one US iron-ore miner Cliffs Natural Resources to include a new project in northern Labrador, it said on Monday. Image of serpentinized ultramafics with Cr pods in the Pipestone Pond area, by Altius Minerals

Sesa Goa, a subsidiary of Vedanta Resources, on Saturday said it will buy 51% stake in an iron ore making firm in Liberia for $90 million in an all-cash deal. Located in Western part of Liberia and spread over 270 sq km area, the company has an estimated reserve of over 1.05 billion tonnes iron ore. Vedanta's investment follows iron ore giant ArcelorMittal which after five years of ground work started operations at the country's Tokadeh mine earlier this year and is spending $800 million in the first phase of the project to rehabilitate the rail link and port. ArcelorMittal exported the first iron ore from Liberia after a 20 year hiatus on June 11 from the port of Buchanan.

Green Car Congress reports Rio Tinto has signed a deal with with the India's Jindal Steel and Power, part of the $15 billion Jindal group, to develop and commercialize the HIsmelt direct smelting technology. The existing plant in Australia, shuttered by Rio Tinto in 2009 because of depressed pig iron prices, will be relocated to India. HIsmelt, short for high-intensity smelting, is the first commercial direct smelting process for making iron straight from ore. The technology smelts iron ore fines directly using non-coking coals, and provides environmental benefits over traditional ironmaking as it removes the need for coke ovens and sinter plants.

Talon Metals has cranked up the resource estimate for its Trairão iron ore project in Brazil by 60%, the company said today, which puts the inferred resources at over a billion tonnes. Talon, based in British Virgin Islands, added another 414 million tonnes with an average grade of 33% Fe to its existing two target areas, bringing the total amount of iron ore to 1.102 billion tonnes.

Rio Tinto reported a surge in profits due to strong demand in Asia and higher metals prices on Thursday but shares in the company spiked lower in New York, opening down more than 7% and wiping more than $10 billion off the value of the globe's second largest miner. Net earnings for the first half year were $7.6bn, up 30% on the $5.8bn the firm made a year earlier. Commenting on the results chairman Jan du Plessis said the economic environment remains volatile but expected the Australia-based company continue to experience higher than average growth for the rest of the year. The company also said it was experiencing high cost inflation in some "mining hotspots" and cautioned that the strong Australian and Canadian dollar were impacting its profitability.

The internet is fast growing into one of the Australia's strongest economic drivers, with a new report commissioned by search giant Google showing it had contributed more than $50 billion towards the country's gross domestic product last year. That sum equates to 3.6% of the economy, putting it on par with the economic value of iron ore exports according to the survey. While impressive, the figure is still dwarfed by the sums involved in iron ore mining in Australia and elsewhere, something Gina Rinehart can attest to. Rinehart, 57, is set to become the world richest person as her wholly-owned mines go into production in a couple of years, netting her a tidy $10 billion in annual profits.