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India's Second Largest Iron-Ore Miner Halts All Activity
While the plight of precious metal mining in the 3rd largest gold producer in the world has been well-documented here, as on ongoing strike in various South African mines has crippled precious metal supply, so far the mining shut down had not spread outside the continent of Africa (excluding the occasional Bolivian and Venezuelan mine nationalization). Today, however, even more mining capacity was taken offline, as India's Goa, the country's second largest iron ore producer, announced it was temporarily ceasing all mining activity "after an expert panel formed by the central government found "serious illegalities and irregularities" in mining operations." While no gold production has been impacted yet, this move, which likely has political overtones, will likely shift to other extractors soon, as more production capacity is taken offline, for either labor or kickback reasons. And as reported previously, demand by the now largest importer of gold in the world China, refuses to decline with supply, which has clear implications for the equilibrium price. It remains to be seen if Goa going dark will push iron-ore prices higher. It is quite likely that the collapse in Chinese iron-ore demand offline is far greater than anything Goa will remove from the market and as such will hardly push iron prices higher.
From Reuters:
Goa has not banned movement of iron ore already produced and stored at ports or in transit, the statement said. The state will form a verification and clearance committee to scrutinize operations before giving approval to resume mining, R K Verma, principal secretary at mines and geology, said in a statement.
Goa is India's second-biggest iron ore producer. It produces more than 50 million tonnes of iron ore annually and exports almost all of it, making it the top exporter. Sesa Goa Ltd (SESA.NS), an Indian unit of London-listed Vedanta Resources Plc, gets most of its iron ore from mines based in Goa.
The mining-suspension order came a week after the Supreme Court partially allowed mining in the neighbouring Karnataka following a ban of more than a year.
India used to be the world's No. 3 iron ore exporter, with most of its product heading to China. But a clampdown on illegal mining in 2010, and New Delhi's measures to keep output for domestic steel mills, slashed exports in half.
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Those tiny bubbles...
Make me happy....
Make me funny....
Here comes more inflation.
http://davidmorganblog.blogspot.ca/
"We don't want your iron. What do we have to build? Olympic stadiums? Another Burj Dubai?" *cruncha cruncha cruncha* go the broken gears of industry. ANNNDDDD here comes more inflation.
Lay off the Hopium bro... Here, try bath salts...
You very well may be the first person at ZH ever to even imply that I had tried a hit of hopium once...
You obviously have me confused with someone else....
Funny as in Ha Ha?
Or Funny as in...
It's OK, Australia's Iron whOre, Gina Rinehart, will crack the whip on her slaves to make up for it. No more Foster's until they double output.
No one drinks Forsters here, it's cat's piss.
How dare you! I resent that remark you motherfucker! Nobody here drinks Fosters anymore, not for past 15 years at least...we export all of our shit products; Fosters, Vegemite, Home & Away, Neighbours etc-etc to third world countries, like the UK .
As for your slanderous remarks about Geeenaarh Rhino@heart whipping $2/hr FIFO slave gimps from Africa...I think that's a tread for another forum...like a German Latex & Gas Mask type site...one with porn queen Angle-down Merkel moaning "Dash-ish-good-yar!".
Is it me, or are there quite a few closet sick fucks on ZH forum.
You still brew Swan Beer? Had once on a trip down there. Great Beer!!!!!!!!!!!
A lot of great boutique beers are being made...Swan, Fosters, XXXX, VB, Emu etc are not widely...tollerated...these days.
Forget the headline about the ever-present and stereotypical Indian RED TAPE.
The Iron Ore Industry has a cartel structure and pricing mechanism that OPEC would kill for...
What is the natural result of excess supply driving down prices and reducing the oligarchy`s profits?
It will not push iron ore prices up as Goa has banned all exports of iron ore months back. Goan iron ore has been off market for quite sometime.
Whats happening now is just conclusion of millions of tonnes of illegal mining and exports. This should have no impact on prices whatsoever. So to say, this is priced in.
Kickbacks in India ? ya, riiiight...
OT: some guy from Anonymous totally shut down GoDaddy today. Another day, another false flag!
Heard Anonymous changed their name to "WhosyourDaddy".
India is both corrupt and cramped. The only two things going for it is the fact that it has such a large agricultural base which bodes well under a total collapse scenario. Secondly her people probably have more gold per capita than any other race.
If you doubt globalization's reach, look down and read the print on the manhole covers and storm drain grates in your neighborhood. Most in my neighborhood read "MADE IN INDIA". Talk about exponential dominos!
Without seeming completely immature … we don’t need no steeeking grates.
Aren't there other junk metals which are byproducts of iron production?
This has got to be BEARISH for those metals. Takedown in 3...2...1...
Oh and for the clueless..... /sarc
Goa has been dealing with this issue for years, the amount of open corruption is shocking. All of the largest mines, trucking operations and related industries are owned by current and former government officials. This temporary halt is just an attempt to placate the masses. They will continue with production as soon as all of the corruption has been eliminated, which should be about a month or two given the governments assurances that this type of behavior will not be tolerated.
/sarc
I look forward to these criminals to arrive in my city as honored new members of our open and loving society....oh wait, they are already here (I just saw their 17 year old daughter drive by in a brand new Bentley).
Rupee sucks and current account deficit just gets worse. Smaat move.
- Ned
Abe Lincoln VS Chuck Norris Epic Rap Battles of Historyhttp://www.youtube.com/watch?v=zj2Zf9tlg2Y
further evidence of a Chinese hard landing. they can't export it anymore and rather than admit it - they suspend operations indefinetly over allegations.
Depleted uranium and lead are in a bull market.
'American' economics...
It is good that you put the word 'Americans' in quotes, indicating that you are not referring to actual Americans, but to some hypothetical and fantasized 'Americans' of your own twisted imagination, upon whom you can mindlessly blame all the evils of the world.