Tungsten & Sapphire Growth Furnace Price

Vantage Drilling Tungsten Explorer Show Further Strength In Ultra-Deepwater Drilling

Details: Category: Tungsten's News; Published on Friday, 25 January 2013 09:13; Hits: 2702

The developments occurred on Tuesday, January 22 that show the continuing strength of the market for offshore drilling rigs, particularly in the ultra-deepwater sector. I have discussed this strength a few times over the past month, most notably here.

The developments is an announcement by Vantage Drilling (VTG) that it has received a conditional letter of award for its newbuild drillship Tungsten Explorer. This two-year contract will commence in mid-2014 and end in mid-2016. The customer will also have four options to extend the contract for a period of six months per option. Thus, the rig would be under contract from mid-2014 until mid-2018 if all four of these options are exercised.

The Tungsten Explorer is a 2013-built ultra-deepwater drillship that is capable of drilling wells up to 40,000 feet deep in up to 12,000 feet of water. This makes the rig one of the most capable ultra-deepwater drillships in the world today.

Vantage Drilling stated that it expects total revenue from this contract to be approximately $468 million, including the mobilization fee. This works out to approximately $641,000 per day but, once again, that includes the mobilization fee. Therefore, the rig's dayrate is not $641,000. Vantage Drilling did not state what the mobilization fee actually is so we cannot calculate the actual contractual dayrate. However, based upon mobilization fees for similar contracts, we can assume that the contractual dayrate is around $600,000, the midrange of a span of possible dayrates that extends from the upper $500s to $620,000. The biggest factor here is whether or not there are any customer-requested modifications to the rig. If there are no such modifications then the dayrate will likely be at the high end of this range, around $620,000 per day or so. The company will amortize its mobilization fee over the life of the contract so ultimately Vantage Drilling will realize revenues of $641,000 per day over the two- year contract term. However, it is important for investors to realize that the mobilization fee is only intended to reimburse Vantage for the costs that it incurs in getting the rig into position and ready for its assignment. The dayrate is where the contractor really makes its profit and so it would be nice to have a definite value for this.

This contract does not begin until mid-2014, however the rig will be delivered this year, in 2013. That leaves a period of time where the rig will be idled without a contract. This means that the rig will generate no revenues and Vantage Drilling's revenues and profits will be lower than if the rig were operational during this time. Vantage Drilling addressed this in its contract announcement and stated that the company would try to secure additional work for the rig sooner, to avoid idling. According to Paul A. Bragg, Chairman and CEO of Vantage Drilling,

"The announced project is an attractive cornerstone for us. Since the Tungsten Explorer is scheduled for delivery in May 2013, we expect to obtain additional work for the unit to commence upon delivery from the shipyard. We are currently discussing drilling requirements for the second half of 2013 and early 2014 with both affiliates of the counterparty to this contract as well as several other customers. We expect that we will conclude another contract, thereby increasing Tungsten's contracted backlog, inclusive of options, to be approximately five years from commencement."

Given the current state of the market, Vantage is unlikely to have much difficulty finding near-term work for the Tungsten Explorer, although most oil companies prefer long-term contracts in the current environment and the current contract precludes that possibility. However, short-term contracts also carry much higher dayrates than long-term ones so Vantage would benefit from the higher dayrate should it secure such a contract. Mr. Bragg's statement that the company is already in talks to secure a contract for the second half of this year and early next year do provide optimism regarding the company's changes of securing an additional contract.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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The Development Direction of Tungsten Industry in the World - Ⅱ

Details: Category: Tungsten's News; Published on Thursday, 24 January 2013 18:44; Hits: 2536

(3) Tungsten carbide

Tungsten carbide industry occupies an important position in the national economy. The mainly raw material of cemented carbide is tungsten. According to the pertinent data from U.S., about 50% of the tungsten is used for cemented carbide manufacture. Currently more than 50 countries in the world produce carbide and the annual production is about 2.8 million tons. Developed countries in the world are in a leading position of carbide industry, mainly in the following areas:

1) Precision dedicated tungsten carbide tools. According to the reports, the large-scale production line of sedan needs a large number of special carbide tools. The statistics data abroad shows that if the annual production capacity is 3 million cars, the requirements of special tungsten carbide tool output value should be $ 200 million to $ 300 million. At present, the productions of precision dedicated tool are basically monopolized by large foreign companies.

2) Tungsten extrusion technology. For example, the advanced technology of plasticizing extrusion with powder is applied abroad, which is capable to produce ultrafine nanocrystalline carbide cutting tools, and complex shaped products. This technology has very significant economic benefits. For example, the output value of imports carbide bar with screw holes is up to RMB4,000.00/ kg, general ф6mm high-performance hard alloy extrusion bar output value is up to RMB1,000.00/ kg, however, general carbide products output value is only RMB200.00/ kg.

(3) Nanostructures tungsten carbide. Rutger University took the lead of fluidization thermochemical conversion process (SCP) had successfully developed a nano-structured tungsten carbide cobalt composite powder, and quickly reached the scale of production, the powder grains less than 50 nm. Micro drill, tape cutter, scalpel manufactured by nanostructures tungsten carbide have two times working life than the currently used microcrystalline alloy products, the nanostructures tungsten carbide will become one of the most popular new materials in the 21st century.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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Ormonde Mining Reveals Drill Results from Spanish Joint Venture

Details: Category: Tungsten's News; Published on Thursday, 24 January 2013 11:30; Hits: 2532

Ormonde Mining this morning unveiled some encouraging drilling results from its Peralonso gold permit in the Salamanca Province of western Spain.

This is part of its joint venture with Aurum Mining.

The best results from the eight holes included 9.2 metres at 2.09 grams per tonne of the precious metal from a depth of 99.8 metres, 6 metres 1.87 grams and 2 metres at 10.18 grams.

The company’s flagship asset is Barruecopardo, a world-class tungsten project in Spain, which is slated to come into production later this year.

Initially producing 12% of non-Chinese world concentrate supply, operations to be expanded to become a major long-life mine.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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The Development Direction of Tungsten Industry in the World - Ⅰ

Details: Category: Tungsten's News; Published on Thursday, 24 January 2013 18:36; Hits: 2453

From an international point of view, the applications of tungsten in national economy are mainly as follows:

(1) Tungsten processing materials

Tungsten processing materials include wires, rods, plates and so on. The international development directions of tungsten processing materials are high technical content, particularly high specifications and specific shapes. Such as reliable anti-seismic and sag resistance tungsten wire, tungsten filaments used for special light bulbs, tungsten alloy wire used for electric image tubes, ultra-high precision tungsten narrowbands, high purity and ultra-high purity tungsten used for VLSI Sub microspheres. Currently, the largest tungsten products abroad amounted to 1.2 tons, while China is only 0.2 tons.

(2) tungsten-based heavy alloy

Tungsten-based heavy alloy is a class of tungsten – based group (85 to 99% amount of tungsten-containing), which adds Ni, Cu, Fe, Co, Mo, Cr and other elements in the alloy, known as tungsten heavy alloy or high-density tungsten alloy. Tungsten-based heavy alloy is widely used in the military industry and civilian industry, such as penetrators and cluster bombs in military industry, the anti-X-ray and G-ray shielding materials in medical industry, high-density tungsten alloy vibrator and electrode materials in civilian industry, etc. Tungsten-based heavy alloy consumption in developed countries accounts for about 10% of the total tungsten consumption, the United States is the world's largest producer and consumer of tungsten based heavy alloy, its production has reached more than 1,000 tons per year.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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Ice Fishing - Tungsten Style Ice Jigs Work Best in Deeper Water

Details: Category: Tungsten's News; Published on Thursday, 24 January 2013 11:22; Hits: 2388

The recent arctic blast of cold weather has increased ice thickness on the small, shallow lakes and bays. These areas have up to 10 inches of solid ice. When fishing the large, deep lakes, caution must be used. Bring along safety equipment including: spud bar, ice picks, throw cushion with rope and a life jacket. There are still open water areas on these lakes with the windy conditions.

Bluegill fishing was hit and miss on the area lakes. Weeds in 6 to 12 feet of water will hold bluegills, along with deep water 20 to 35 feet. Anglers have reported finding them tight to the bottom. Light 1-pound or 2-pound test line, small No. 14 to No. 16 sized ice jigs, and a spring bobber are a must to finesse bluegills to bite. Wigglers have been the best bait to use for finicky fish. Wax worms, red and white spikes, mousies and ice plastics have also produced. Tungsten style ice jigs will work best in deeper water, while Ratfinkees, Marmooskas, Moon jigs, and tear drops took fish in shallower water with the slower drop.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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