MMi Daily Iron Ore Report (February 5)

Pakistan inaugurated Phase III of the Thar Coal Block II project on October 5, raising the mine’s annual production capacity from 7.6 million tonnes to 11.2 million tonnes, according to Sindh Chief Minister Murad Ali Shah. The 3.6 million-tonne annual capacity increase will enable Lucky Electric Power Company’s 660 MW plant to fully switch from imported coal to Thar coal. The expansion is expected to reduce Pakistan’s reliance on imported fuel and save around $220 million in foreign exchange annually.

India's German Green Steel and Power listed on the BSE on Monday at 1.65 USD per share, a 3.2% premium to its 1.60 USD IPO price, but profit-taking drove it 8% below the offer price to a day low of 1.46 USD. The pre-listing grey market premium implied just a 6.8% gain. The mainboard IPO, open September 25-29, was subscribed 28.98 times, with retail at 22.83 times, non-institutional investors at 54.03 times and QIBs at 20.93 times. The 35 million USD issue, including a 33 million USD fresh sale, will fund the Samakhiyali plant expansion, a hybrid wind-solar plant and debt repayment. The integrated producer makes TMT bars, MS billets and sponge iron at two Gujarat plants; FY24-FY26 revenue rose from 130 million to 193 million USD, EBITDA from 9.1 million to 19.2 million USD, and net profit from 4.8 million to 9.2 million USD.

Afrika Selatan akan melarang penjualan besi tua secara tunai melalui amendemen Undang-Undang Barang Bekas, guna menekan perdagangan gelap dan vandalisme infrastruktur yang merugikan sekitar 45 miliar rand (2,5 miliar dolar AS) per tahun. Pedagang wajib menyimpan data penjual dan beralih ke pembayaran elektronik, mencatat setiap pembelian atau penjualan; pendaur ulang harus mencatat nama dan nomor identitas pemulung. Warga negara asing tanpa izin tinggal tetap yang terverifikasi akan kehilangan izin usaha, dan emas serta krom juga tercakup. Kabel curian di jalur kereta Transnet meningkat dari 120 km menjadi 724 km per tahun antara 2017 dan 2021, dengan insiden naik dari kurang dari 2.000 menjadi hampir 4.500. Pencurian tembaga merugikan Eskom 5–7 miliar rand (280–390 juta dolar AS) per tahun, ditambah 2 miliar rand (110 juta dolar AS) untuk penggantian kabel. Kabinet menyetujui rancangan undang-undang ini untuk tanggapan publik pada Agustus, dengan batas waktu 2 November.