STEEL + TECHNOLOGY 04/2019 EXTRACT

PANORAMA | 87
these crucial supply shortages, investors
have begun eyeing alternative iron-producing
locations.
One of the most promising iron-producing
regions in North America right now
happens to be Newfoundland and Labrador.
Already the largest producer of iron in
Canada, the federal government has
already recognized the untapped potential
of the provinces iron reserves. Premier
Dwight Ball has already stated that the
government is planning to “double the current
level” of output.
As such, the region has seen an influx
of mining companies looking to tap into
these untouched iron reserves. Labrador
Iron Ore Royalty Corporation is one of the
oldest iron miners in the province, having
been around for over 81 years thanks to
exclusive mining rights in Labrador West.
Other miners, such as Champion Iron
Ltd, have recognized the region’s potential.
Paying over US$200 million to buy out a
neighboring iron mine from the provincial
government, miners are willing to pay significant
sums in order to carve a piece out
of Eastern Canada’s wealth of iron deposits.
Overall, iron prices show little signs of
slowing down as experts around the world
prepare for what has quickly become on
the most drastic iron shortages in recent
history. Lourenco Goncalves, industry
expert and CEO at Cleveland-Cliffs Inc,
said that “What we are seeing in the world
right now is the biggest pellet shortage
that you could not have imagined what
would happen.”
Further mining developments
Champion Iron Ltd, made news in the
mining world in May when it won the rising
star company award. Given out at the
2019 S&P Global Platts Global Metals
Awards, the company was singled out as
a big mover in the Canadian mining industry.
With their iron output having already
plummeted in recent months, Vale SA ended
up issuing a warning about another
potential dam break. Their Gongo Soco
mine in Brazil was under threat of collapse,
with local residents having already been
evacuated. While Vale said the risk of an
outbreak has diminished, analysts and
investors are still worried about more
potential collapses.
Cleveland-Cliffs Inc. announced earlier
in the year that they were planning to issue
C$750 million in senior notes. The company
intends to use these proceeds to pay
off some of their other bonds as well as
other corporate expenses.
Posting their financial results for the
first quarter of 2019, Labrador Iron Ore
Royalty Corporation reported modest
growth in comparison to the first quarter
last year. Growing from C$33.8 million to
C$38.5 million in first quarter revenues,
investors and analysts were satisfied
with these results as the stock price shot
up.
Iron ore prices should continue to
remain strong and this is being supported
by the increased demand from the steel
industry. Also, the ongoing trade war
between China and the U.S. is expected
to have a positive impact on the price of
iron ore.
Microsmallcap.com (MSC, Vancouver,
BC, Canada) is the source of the article
and content set forth above. References
to any issuer other than the profiled
issuer are intended solely to identify
industry participants and do not constitute
an endorsement of any issuer and
do not constitute a comparison to the
profiled issuer.
• Delrey Metals Corp.
Ningbo Iron & Steel completes modernization of its hot strip mill cooling section
Final Acceptance Certificate only 14
months after receipt of order
On 26 September 2019, only 14 months
from the placement of the order, Ningbo
Iron & Steel Co., Ltd., China, issued to
SMS group the Final Acceptance Certificate
for the successful execution of the
laminar cooling modernization in its hot
strip mill. The mill capacity is 4 million tons
per year in the strip thickness range
between 1.2 and 19 mm and strip widths
between 900 and 1,630 mm. The rolled
steel material are grades for household
and building industry applications as well
as grades for the automotive industry.
The main targets of the cooling train
modernization were on the one hand
improved cooling performance with tighter
tolerances for the coiling temperature and
on the other hand the extension of the
product mix by dual phase steel grades DP
600 and DP 800 for automotive purposes,
pipe grades X60 and higher as well as nongrain
oriented electrical steel.
The modernization package comprised
six super-reinforced cooling banks at the
entry of the cooling section and six reinforced
cooling banks in front of the trimming
zone. To avoid strip unflatness problems
created in the cooling section, SMS
group installed the advanced header technology
ensuring uniform flow over the
complete width. Furthermore, a new cross
spraying system with new headers has
been installed operating with a pressure of
20 bar to allow highest cooling efficiency.
• SMS group
View of the reinforced laminar cooling and cross spray systems (Picture: SMS group)
News brief
STEEL + TECHNOLOGY 1 (2019) No. 4