Table of Contents
Re-Lighting the Global Furnace ....................................5
Key Global Picks – Iron Ore...........................................8
Key Global Picks – Coal........................................9
Steel Market Outlook.............................................10
Iron Ore Market Outlook ..................................................20
Coking Coal Market Outlook.........................33
Risks to Our View..........................................................43
Company Profiles:
Aquila Resources (ASX: AQA)...................................46
Atlas Iron (ASX: AGO) ..........................................................49
Centennial Coal (ASX: CEY) ............................................52
Fortescue Metals (ASX: FMG)................................55
Gindalbie Metals (ASX: GBG)..................................58
Mount Gibson (ASX: MGX) .......................................68
Northern Energy (ASX: NEC)...........................71
Northern Iron (ASX: NFE) .........................................74
Riversdale Mining (ASX: RIV) .....................................77
Straits Resources (ASX: SRL)...................................80
Teck Resources (TSX: TCK.B; NYSE: TCK)...........................83
Vale (NYSE: VALE; NYSE: VALE.P).........................87
Sector Comparatives .........................................................91
Other Australian Sector Players........................................99
Appendices:
Appendix I: Iron Ore 101...........................................104
Appendix II: Iron Ore Product Streams ................................106
Appendix III: Iron Ore Products And Pricing......................107
Appendix IV: Iron Ore Exports 2007 ..............................109
Appendix V: How Coal Is Formed ......................................................111
Appendix VI: Coal Classification .............................112
Appendix VII: Coal Used in Steel Making – Coking Coal.............114
Appendix VIII: Pulverised Coal Injection (PCI)....................115
Appendix IX: The Coking Coal Market – A Brief Overview...............117
Appendix X: Diagrammatical Overview of the Steel Making Process.......119
Appendix XI: Steel Making ........................................120
Appendix XII: Direct Reduced Iron..........................124
Appendix XIII: Scrap in the Steel Process...................125
Appendix XIV: Continuous Casting .....................126
Appendix XV: Metallurgical Coke and Flux .....................127
Appendix XVI: Australian Iron Ore Ports ..................129
Appendix XVII: Major Coal Ports............................130
Appendix XVIII: Glossary of Coal Terms...................131
Appendix XIX: Rules of Thumb....................................132
Required Disclosures ............................................133