WHO is building a DRI plant near Utac????? Where did you hear this? You mention it everyday, where is your information coming from??? Not even a rumor goes undetected! But there are no rumors to such a development on the Iron Range!
In a story by Minn Brown, Gov Dayton acknowledged(conceded) that the cancellation of the lease was now part of the Ch 11, and the BK court would decide on it. The mineral lease may be decided very early on, and the Gov is working with the Atty General of the State to that end. If the BK court pulls the mineral rights from Essar, there entire case will fold. Bond holders will push them aside and make a deal with Cliffs or another entity. That is the plan. Without mineral lease, Essar is unwanted and unneeded! Meanwhile, they are already pandering to the contractors to drum up support, similar to the tactics they use in Canada with the steel workers union. No ethics or integrity.
Goncalves traveled to Minnesota to meet with Governor Mark Dayton July 12 to discuss the project. Still, Cliffs' plan likely hinges on the outcome of Essar Steel Minnesota's bankruptcy proceedings, filed the same day Dayton canceled the beleaguered company's mineral leases. The state may have to defend the lease cancellation in the U.S. Bankruptcy Court in Delaware, Goncalves said. The governor is working with the (state) attorney general, and they feel very confident that they have their ducks lined up, he noted. At the same time, Essar Steel Minnesota is counting on the bankruptcy filing to delay what it calls the lease cancellation while the company seeks proof that it can fund the remainder of the project. Goncalves has previously expressed doubts about Essar's conditional recapitalization and debt restructuring plan. It's a 'non-binding letter of intent.' It's nothing, he claimed, using phrases such as empty words,B.S., and toilet paper to describe the deal, and suggesting that no one agreed to provide any money under the current circumstances. Meanwhile, Essar's Brunfelt questioned Cliffs' intentions, calling the Tuesday meeting political grandstanding and theatrics. Goncalves' pledge is a long shot at best, Brunfelt said, and it is highly questionable that Cliffs could ever achieve what it is presenting to Minnesotans. Instead, it appears the real reason Cliffs wants to try to lock up the mineral rights at the Essar site is to simply block another pellet supplier and potential competitor from coming online, especially when that competitor will have the ability to produce a better and lower-cost pellet than any of Cliffs' existing facilities, Brunfelt told AM via e-mail Thursday. Hibbing, Minn.-based Essar Steel Minnesota, a subsidiary of India's Essar Group, owes $66 million to the state of Minnesota and $49 million in unpaid invoices to private vendors, the governor's office has said.
Cliffs Natural Resources Inc. and Essar Steel Minnesota LLC have escalated their war-of-words over an Iron Range ore site, with each company launching accusations about the other's motives. Cliffs is ready for anything in Essar Steel Minnesota's pending bankruptcy case, Lourenco Goncalves, chairman and chief executive officer, expressing confidence that his company will prevail in the clash over mineral rights at the Nashwauk, Minn., tract. Meanwhile, Essar Steel Minnesota spokesman Mitchell Brunfelt alleged Cliffs is misleading and victimizing Minnesotans to thwart a new competitor from entering the pellet market. Goncalves envisions a direct-reduced iron (DRI) plant that will ultimately produce about 2 million tons annually of hot-briquetted iron (HBI) at the site. The Nashwauk development may or may not include a new DR-grade pellet plant, according to Goncalves. A new pellet plant would be ideal, but I (already) own my own pellet plants, he said. I do need the iron ore.Cliffs has begun shipping DR-grade pellets from its Northshore Mining operation in Minnesota, but a new pellet plant at Nashwauk would be more efficient for feeding HBI production, Goncalves said. If I develop a dedicated pellet plant, it will be a 3.5-million-ton-per-year pellet plant, something like that, he said.The proposed DRI facility would be the first in the Great Lakes region, an area in which Cliffs has previously expressed interest. Were the site to include a pellet facility, Goncalves projected the creation of 400 full-time positions at the union-run operation once construction is completed. Cleveland-based Cliffs expects a smooth negotiation with bondholders and other rights-holders who have a stake in the site, Goncalves said. The state of Minnesota owns 41.6 percent of the Nashwauk mine property, and local officials have already expressed support for Cliffs.
It did not go down like that. Essar filed ch11 at 11:30am, 1/2 hour before the mineral leases were pulled by the Governor, in a a well planned stunt. Essar's legal is saying that the State cannot pull or reassign the mineral lease now because of the filing... everything is "stayed" in the ch11. It will be up to the BK court now. Gov Dayton conceded as much last week in press, but said the State was confident it would prevail in court.
rmcnicoll, your dreaming if you think MInn will grant the lease to Cliffs, just so they can rail out the iron ore to UTAC. That is not gonna happen. The State wants that site developed, as a condition of the lease. Ideally a pellet plant and a DRI facility on the Nashwauk site. Besides, the mineral lease is now in the Federal Courts as part of the ch11, unfortunately.
That is good. Should help pellets premiums(including DR Grade) and make it more attractive for DR Grade suppliers in Canada to sell into the SB market.This makes alternative IO inputs in the Great lakes more expensive.... in theory. If you recall in the CCs last year, LG was happy to see Canadian pellet producers focus on SB vs the US.
In a nutshell, if your Cliffs, then Essar Global is the DEVIL, per the Cliff's CEO. His hatred for Essar is legendary. They are trying to wrest control of Algoma Steel and US Steel Canada in restructuring, 2 of Cliffs pellet customers. This can also play into the future of Essar Minn, as they would have potential customers for there taconite. The ideal situation for all Cliffs stakeholder is to see Essar leave North America. That does not appear to be there intention. They bribed the United Steelworkers and snookered Governor Dayton, to get the mineral lease tied up in federal court. They are not to be trusted. USW made a deal with the devil.
Its apparent that Essar Global wants to buy, with financial partners, all 3 companies out of bankruptcy restructuring. Algoma, US Steel Canada, and Essar Minn.
Essar Steel Algoma Inc [ESSRGE.UL] said private equity firm KPS Capital Partners LP had backed out of a consortium that made an offer for the steel maker, but that certain term lenders were still pursuing a bid.
ESA, which was bought nearly a decade ago by Indian energy and resources conglomerate Essar Global, had put itself up for sale while operating under creditor protection.
"The term lenders have indicated that they remain committed to a going-concern outcome for Algoma and all of its stakeholders, and to closing the transaction contemplated by the asset purchase agreement as soon as possible," ESA said.
A group that includes shareholders of Essar Global signed a letter of intent with a local unit of the United Steelworkers Union (USW) on Tuesday to negotiate a deal to buy ESA for about $900 million.
"The USW would like the restructuring effort to be more responsive to the interests of key stakeholders and is considering bringing a motion to the court seeking relief to that effect," United Steelworkers said in a statement.
"With other bidders and/or restructuring proposals waiting in the wings, KPS departure provides opportunity to put restructuring back on track," the union said.
Essar Global said last month that it was opposed to the sale of ESA to New York-based KPS Capita
Posted 20x a day non-stop for ever, then just vanished. Very controversial(nuts) but entertaining poster. I think I learned a few things about rocks and composition from NNut. Damn, I hope he didn't get whipsawed out of the stock day-trading...or meet his maker!
Getting 650m in debt financing on an unneeded taconite facilty with no customers sounds like a fairytale. It appears Essar still has some crazy #$%$ plan of retaining interest in Algoma and Minn., both in bankruptcy. I'm really #$%$ off that the Govenor cannot re#$%$ign the mineral rights to Cliff's like he wanted to, a consequence of this stunt. Not only does it extend the timeline for this project, but could invite unwanted mining and steel companies to bid on the #$%$et and compete with CLF. If CLF had those mineral leases locked up , there is no risk from outside bidders.
Completely agree. The Govenor has to be livid at the backdoor stunt they pulled. Minn Brown is reporting that today's meeting in Naswualk was like a battle cry....a call to arms .LG stated the mineral lease is now part of the Ch 11, and could take up to a year to resolve. Dayton should of pulled the lease on July 1. Essar is an evil empire, not to trusted.
Essar is not gonna leave North America quietly, that is for sure. They are gonna fight not only in Minn, but also at Algoma Steel in Canada. These are unethical scumbags, that pulled a fast one on Governor Dayton, who agreed to a 1 week "stay" on the mineral lease ruling, only to see Essar file ch11 minutes before the stay was to expire Friday, at noon. He should of known not to trust this outfit. They burn everyone.Very underhanded maneuver to try and get everything frozen, and in front of a Federal Judge. And now they are trying more crap in Canada.....
Key stakeholders of Essar Steel Algoma Inc. are pursuing a multi-pronged effort to block the purchase of the steel maker by a New York-based private equity fund and a group of lenders.
Holders of Essar Algoma’s junior and senior notes, the United Steelworkers (USW) union and the port of Algoma are urging the Ontario Superior Court to halt a bid by KPS Capital Partners LP, which is seeking approval by the same court of a purchase agreement it has signed with the Sault Ste. Marie, Ont.-based company.
Strategic Partners LImited, or SPL Group of Companies. John-Michael Lind is the Chairman of the Strategic Partners Limited (SPL) group of companies, which provide corporate finance services and private
equity management, with offices in Mumbai, India and Silicon Valley. SPL
manages a proprietary venture capital fund in India. Mr. John Michael Lind serves as Managing Director, Chief Executive Officer AND Senior Portfolio Manager of Ashmore India.
Mumbai, Maharashtra 400034 India
Yup, that is the case. Cliffs was the Fool that bought high(billions), put in another 1.5B in capex, and sold for peanuts. In the old days, Carrabba would have been lynched.
I would agree with the poster below on Turbo Tax.Turbo Tax Deluxe is a very good choice that lets you download right from your brokerage account. Very good unless unless you are a heavy trader(over 500 trades). Then you will need more advanced software for active traders like Gainskeeper or Tradelog.
The tax rate can vary dramatically between short-term and long-term gains. If you can manage to hold your assets for LONGER than a year, you can benefit from a reduced tax rate on your profits.....On long term capital gains, for those in the 25 to 35% tax brackets, the capital gains tax is 15%. For the wealthiest citizens who fall into the 39.6% income tax bracket, the capital gains rate is still only 20%. If you hold less than 1 year, short term capital gains do not benefit from any special tax rate – they are taxed at the same rate as your ordinary income, up to 40%. The clock begins ticking from the day after you acquire the asset up to and including the day you sell it.
Agreed. The whole thread is senseless . Mining companies pay royalties on leased mineral lands, as long as there is money to be made, and a decent margin. Cliff's won't spend 1/2 billion or more on Essar, so they divert product from Northshore....because of royalties. Essar has its own royalties to be paid. And LGs interest is not taconite, but DRI at Essar.
Very wrong. You don't put an asset that kind of value(billions) in BK, I assure you. The only ones talking about billions of dollars was in yahoo forum..No one in the real world expected much at all, except liability mitigation.