July, 22 2005
LN Mittal teams up with ONGC to make big global acquisitions
This could well turn out to be Indias energy blockbuster. Global steel tycoon LN Mittal is joining hands with petro biggie ONGC to float an energy consortium for overseas acquisitions.
The final agreement on the consortium is expected to be signed shortly. While this signals the beginning of Indias highest profit-making company, the $14bn ONGC group, moving into the big league, for the worlds largest steelmaker the $22bn LNM group its a move from steel to a whole new world of oil and gas. The joint consortium will seek to acquire overseas equity in oil and energy-related businesses like energy trading and shipping.
The joint venture consortium, expected to be registered in a EU country, will seek to concentrate primarily in countries where the LNM group has established its presence. Mittal Steel, the flagship company of the LNM group, has steel-making facilities in 14 countries and sales and marketing offices in 11 more.
For the Mittal group, which has capitalised on the steel boom, it is now time to move on to yet another boom commodity. Most analysts believe that the spike in oil prices in recent times only reinforces the trend of high crude prices in the coming years.
Four iron ore rich states mull mineral axis
Jharkhand and West Bengal propose to rope in two other mineral-rich states in eastern India and form a council that would look after the collective interest, Chief Minister Buddhadeb Bhattacharjee announced here Thursday after a meeting with his counterpart from Jharkhand, Mr Arjun Munda.
There is a proposal to set up a council with four states Orissa, West Bengal, Jharkhand and Chhattisgarh - to ensure the best possible use of mineral resources on the basis of collective interest, Mr Bhattacharjee said. He said Naveen Patnaik, Orissas CM, had agreed to the proposal. The four states together control 70% of Indias coal reserves. Jharkhand alone has 23% of the countrys untapped iron ore reserves.
Tata Steel to outsource IT to TCS
Tata Steel will outsource its information technology department to Tata Consultancy Services (TCS). Tata Steel sources said outsourcing of the infotech department is part of an overall plan to concentrate more on its core business of making steel and also to reduce costs.
TCS is the global leader in information technology consulting, services, and business process outsourcing. The company commenced operations in 1968 and is now present in 33 countries across five continents and offers a comprehensive range of services for diverse industries. Six Fortune Top 10 companies are among its customers.
Tata Steel already has an understanding with IBM for maintenance of its hardware in its IT department. After the outsourcing of the department, IBM will continue to look after hardware maintenance while TCS will be responsible for the software.
Essential commodities list likely to be pruned
The government is likely to remove about a dozen of items from the purview of Essential Commodities Act (ECA), 1955, with a view to lift controls pertaining to their processing, movement, storage and marketing. The amendment to the ECA is likely to be introduced in the monsoon session of Parliament beginning on July 25.
About 15 groups of items are at present governed by the ECA. According to official sources, though majority of items will be removed from the purview of ECA, the sensitive commodities like foodgrains, pharmaceuticals and petroleum will be retained. Cement, steel, auto components are likely to be removed as the government feels that controls over these commodities are no longer needed.
Jharkhand WB CMs to approach PM on iron ore
The two chief ministers met and decided to meet again. Hardly an unusual script
But when the Jharkhand chief minister Arjun Munda today called on Buddhadeb Bhattacharjee here, he sprang a surprise by suggesting that they both call on the Prime Minister together. Bhattacharjee promptly agreed to seek Manmohan Singhs intervention over issues of mutual concern.
The states, meanwhile, agreed to help each other. Bengal offered to share water and power with its neighbour while Jharkhand indicated its willingness to allow industries in Bengal access to its minerals.
No let-up in movement of ore to steel plants
There is no let-up in rail movement of iron ore, either for domestic consumption or for exports, despite reports of cooling of the steel sector. If anything, the movement of ore to public sector steel plants has gone up.
Railways sources said that the ore movement to plants under SAIL was up by 22 per cent in June compared to the same period last year. But the sources also conceded that the comparison with last year is not appropriate because then the ore requirement was low because of the drop in production in the wake of the non-availability of coal.
There has been no drop in movement of ore to ports for exports either, the sources added.
Govt fixes floor price for e-auction of coal
The Ministry of Coal has decided that the floor price for e-auctioning of coal should be fixed at 20 per cent above the Coal India Ltd's (CIL) notified price. This price would be applicable from the next round of auction.
The move follows a series of complaints and representations from small-scale industry associations and other non-core coal consumers that the e-auctioning is leading to unreasonable prices, which is making their business economically unviable.
CIL initiated e-auction of coal on an experimental basis last year for non-core users with the dual objective of weeding out coal mafia through a transparent bidding process as well as to figure what would be the market determined prices for various grades of coal.
CIL started with a low floor price which was the notified price. But after a few auctions, they started using the weighted average of the last few auctions as the floor price. As a result, the floor price for each successive auction was moving higher and higher leading to distortion of prices.
The Ministry observed that the very purpose of e-auction was getting defeated in the process and so reviewed the whole thing and decided to go in for a fixed floor price mechanism.
Electrosteel sees higher earnings in FY07
Electrosteel Castings' sales have moved up by nearly Rs 40 crore in Q1. The company is planning to complete its expansion by the middle of 2006 and expects its FY07 figures to be substantially higher. Electrosteel Castings' net profit in Q1 is at Rs 15.9 crore and its sales in Q1 are at Rs 230 crore.
Electrosteel Castings is a manufacturer of ductile iron pipes and fittings. The company has installed a capacity of around two lakh tones.
BHP JFE signed an 11 year $5.7 Billion supply agreement
The agreement to supply JFE Steel with iron ore is worth $5.7 billion.
The iron ore will come from BHP's Yandi mine in Western Australia.
The mine is expected to produce 15 million tonnes of iron ore annually for more than a decade.
The agreement will deliver hundreds of millions of dollars in mining royalties to the Western Australia Government. It also coincides with a push by the Government to phase out concessional royalty rates granted to BHP-Billiton for more than 40 years.
BHP's president of iron ore Graeme Hunt says the deposit is made up of ore that has not been used in the steel-making process before. "The benefit for everybody I'd add, including the state, is that you're actually getting greater recovery of resources than has been able to be applied in the past, which means that the Yandi mine will last longer," he said. "That has flow on benefits in terms of employment, in terms of royalties, and in terms of benefits to everyone who's associated and depends on those projects."
Steel companies in new Fortune 500 ranking
The Mittal Steel Group has been included in the prestigious Fortune 500 Global Company list for the first time, outperforming many of its competitors.
The worlds largest steel producer was ranked mid-table, 253rd overall, in terms of revenue (US$22.2 billion) but soared up the rankings to 55th in terms of profit (US$4.7 billion). The Mittal Steel Group was also the most profitable steel producer within the metals sector, though ranked seventh in terms of revenue.
Baosteel, China's largest steel conglomerate based in this economic hub in east China, ranked 309th among the Fortune 500 for this year, up from the year-earlier place of 372th, according to company officials.
Baosteel produced 21.41 million tons of steel in 2004, up 7.8 percent from the year-earlier level. It gained 21.9 billion yuan (2.6 billion US dollars) in consolidated profits upon 161.8 billion yuan (19.5 billion US dollars) in annual sales income, up 66.3 percent and 34.4 percent year-on-year.
The other steel makers in Fortune 500 are Thyssen Krupp, Arcelor, Nippon Steel Corp., JFE and POSCO.
Radioactive material found at steel scarp demolition site
Two containers of depleted uranium and one empty container believed to contain the radioactive material were discovered Wednesday at an abandoned warehouse in Mississippi slated for demolition for steel scrap generation
It appears that the new owners, who bought the property in a bankruptcy sale, had no idea the radioactive material was there. The previous property owners were industrial steel welders and the depleted uranium was used in special cameras designed to test the quality of welded joints
BHP Says Iron Ore Market Remains Tight
BHP Billiton said that supplies of iron ore remain "tight" leading into annual price negotiations for the steel-making commodity later this year.
"The market is still tight," BHP Iron Ore president Graeme Hunt told Dow Jones Newswires in an interview Thursday. Hunt, speaking after BHP finalized a US$4.3 billion sales deal with Japan's JFE Steel Corp, declined to forecast a further increase in iron ore prices after the steep rise agreed to earlier this year. "Analysts have differing views on what the supply-demand balance will be, and what will happen with prices next year," he said.
In February steel mills agreed to a 71.5% price hike for iron ore sales in the Japanese fiscal year ending March 31, 2006. The deal was initially struck with major producers Brazil's Companhia de Vale do Rio Doce (RIO) and Rio Tinto Plc. (RTP). BHP initially held out for a higher increase but, after vocal criticism from Chinese steel makers, it eventually caved in and agreed to the same price as its competitors.
Annual price negotiations between the producers and steel mills will resume in October or November, amid signs that Chinese demand for the commodity is still buoyant.
But as the iron ore volumes are increasing, demand growth for steel is slowing and spot steel prices are falling, says an analyst. Not a great background for '06 price negotiations "unless China keeps growing at 10% a year and/or BHP can get an agreement on a CIF price rather than FOB with the Chinese mills." Iron ore remains a high margin/return business but question marks remain over price rise next year, he says.
China steel prices rebound after declining for more than 100 days
China's steel prices have just begun to rebound after a sharp drop for more than 100 days, local newspaper 21st Century Economic Report has reported.
According to the report, the country's steel prices began to recover starting on July 4. Taking Shanghai for example, steel prices rose between 200 yuan (24 US dollars) and 250 yuan (30 dollars) per ton.
This prompted industry insiders to believe that this round of price cutting for steel caused by the state macro-control policies has come to an end.
But Xu Weibin, an official with the Nanjing Iron and Steel United Co. Ltd, held that it is hard to say steel prices have a bright future despite the recent recovery because the state tightening macro-control policies are still there. It is expected that the state will further lower the export rebate taxes for the steel industry, which currently stand at 11 percent after the Ministry of Finance and the State Administration of Taxation slashed the rate from 13 percent starting on May 1. The state may even eliminate the policy of discouraging exports, Xu was quoted as saying.
In addition, the demand for steel will be curbed with the slowing growth of the property sector, as the Chinese government aims to cool the development of the overheated industry, Xu said.
China to create two mega steel companies through merger
China, whose 264 steelmakers supply a third of the worlds steel, plans to shut smaller producers and force mergers to create two companies big enough to compete on world markets with rivals such as Mittal Steel Co.
The two companies will each be able to make more than 30 million metric tons a year by 2010, the National Development and Reform Commission, the countrys top planning agency, said in a statement today in Beijing.
Shanghai Baosteel Group, Chinas biggest steelmaker, last year made 21.4 million tons, compared with about 59 million tons from Mittals plants.
China, the biggest steel maker and user, has been trying to rein in expansion in the industry after output doubled in four years, driving up prices of iron ore and coal to records and fueling inflation.
Global steelmakers including Mittal, the worlds biggest, and Arcelor SA, may benefit if the closures reduce a glut in export markets, said analysts such as Lee Eun Young, from Mirae Asset Securities Co in Singapore.
"Its positive because it will limit expansion in Chinas steel industry, which was imprudent," said Lee. By 2010, China will have two steelmakers with a capacity of more than 30 million metric tonne a year and a few producers of 10 million tons a year, according to the planning agency.
Nippon Steel Corp, JFE Holdings Inc and South Koreas Posco, Asias three biggest steelmakers, each produce about 30 million tonne of steel a year. Grouping mills into bigger businesses is part of a global trend in the steel industry as producers try to boost bargaining power with suppliers of iron ore such as Cia Vale do Rio Doce, Rio Tinto Group and BHP Billiton.
Siemens VAI receives 270 Million Euro order from Mittal Steel
Siemens VAI has received an order from the Mittal Steel Group to build a new high capacity hot strip mill in Cracow, Poland.
This means that, for the first time in ten years, the production capacity for fabricated hot strip products will be increased in Europe. The order is worth a total of 270 million euros and the new mill is scheduled to start operating in spring 2007
Mittal Steel has decided to build a new hot strip mill in Cracow. The new mill will be able to roll steel strips with a width of up to 2100 mm and, with an annual production capacity of 2.4 million tonnes, will be among the largest of its kind in Europe
Siemens VAI will supply the mill on a turn-key basis and its own technologies will be applied. In addition to engineering and construction, the scope of supply also includes the start-up and commissioning of the plant.
The hot-strip mill comprises one reheating furnace, a 4-high reversing roughing mill, and the Encopanel heat-retention system for reduced temperature loss and a harmonized temperature distribution and consequently lower reheating temperatures and required power in the finishing mill. Furthermore, the project includes a 6-stand, 4-high finishing mill with SmartCrown shifting and bending technology, employing specially shaped work rolls which enhance the profile and flatness-control capability, a laminar-cooling system featuring QuickSwitch laminar-cooling headers, allowing for a more precise cooling control especially important for advanced steel grades, and two VAI PowerCoilers with four wrapper rolls for the reliable coiling of high-strength-steel grades. In addition, Siemens VAI will provide all the electrical and automation systems for the mill.
Shipping Rates for Coal, Iron Ore Slump to Lowest in Two Years
The cost of shipping commodities such as coal and iron ore slumped to the lowest in more than two years as the world fleet of vessels expanded and as China ended its decade-old fixed exchange rate to the dollar.
The Baltic Dry Index, a measure of freight rates for different-size ships carrying so-called dry-bulk cargoes on global trade routes, fell 68 points to 2133, the lowest since July 3 2003, according to London's Baltic Exchange. The 3 percent drop was the biggest since April 27.
It's just simply a situation of over-tonnage in the market,'' said Susan Oatway, senior analyst at London-based Drewry Shipping Consultants Ltd. China is still running down inventories of iron ore, used to make steel, accumulated before the record contract-price increases in April, she said.
Freight rates for Capesizes, the largest dry-bulk carriers, on the benchmark route from Australia, the world's biggest iron ore exporter, to China reached $8.36 a ton, down 2.6 percent, or 22 cents from yesterday, according to the Baltic Exchange. Capesizes can carry about 175,000 metric tons of cargo.
Costs to China from Brazil, the world's second-biggest ore exporter, fell 6.3 percent to $21.34 a ton.
Freight rates for Capesizes shipping coal from the Richards Bay coal terminal in South Africa, the world's second-biggest coal-export port, to Europe fell 1.2 percent, or 12 cents, to $10.46 a ton, according to the Baltic Exchange.
South Africa is the world's fourth-largest exporter of coal used in power plants, after Australia, Indonesia and China.
Shipping derivatives, known as Forward Freight Agreements, on the so-called C4 route from Richards Bay, closed at $10.40 a ton yesterday for July contracts, according to International Maritime Exchange AS, or Imarex, in Oslo. August contracts closed at $10.60 a ton.
SS wire rod makers face dumping charge from Eurofer
European Confederation of Iron and Steel Industries (Eurofer), the iron and steel arm of the European Union, is said to launch an anti-dumping investigation on Taiwanese and India manufacturers of stainless-steel wire rods
The stainless-steel wire rods are comprehensively used in automobile and chemical industries.
According to statistics released by Eurofer, the 25 EU member nations imported an average of 2,434 metric tons of stainless-steel wire rods per month in the first four months of this year, up 37.7 percent from the corresponding period of last year.
An industry analyst said a trade war in the international iron and steel sector is emerging amid the slump of the international steel prices.
No landing yet for high-flying Chinese economy
After eight quarters of growth above 9 percent, China's economy is still showing few signs of any landing, let alone a hard one.
But Wednesday's forecast-beating annual GDP growth of 9.5 percent for the second quarter has failed to allay concerns that China's investment-driven boom has sown the seeds of its own destruction by creating a glut across a swath of industries.
Some economists say the tell-tale signs of overcapacity are already apparent. Profit growth drooped in the second quarter as firms cut prices to preserve market share. Consumer inflation fell in June to the lowest level since September 2003.
Rob Subbaraman of Lehman Brothers in Tokyo said China could not grow indefinitely at 9.5 percent without suffering rising price pressures. "Yet inflation is coming down, which to me smells very much like an oversupply problem," he said.China's poor data made it hard to judge the extent of the problem. "It could go on for another quarter or so, but we're getting close to the point where this economy needs to slow for its own good, especially on the production side," he said.
Top steel execs to visit Iron Range plant
The 12-member US Steel board of directors will tour the West Pit, processing plant and administrative offices at the corporation's Minntac Mine in Mountain Iron, said spokesman John Armstrong. "Minntac is an incredible asset for us because it gives us control of one our most important resources -- iron ore, he added
The tour will include a visit to crushing, concentrating, agglomerating and office facilities and possibly a ride in one of the mine's huge production trucks. Weather conditions permitting, board members also could see a blast, a massive explosion that fragments millions of tons of low-grade taconite rock from the mine pit.
On the heels of Pilotac, an experimental taconite plant once located at the site, Minntac began producing taconite pellets in 1968. Since then, Minntac has produced more than 415 million tons of taconite pellets.
Board members don't intend to visit newly acquired Keewatin Taconite, a 5.4 million-ton-per-year taconite plant in Keewatin.
Akbank approves $200 million loan for Erdemir group
Turkish bank Akbank said on Wednesday it had approved $200 million in long-term loans for Erdemir and its affiliate, İsdemir to to finance investments. The loan has a grace period of two years.
A signing ceremony was held at Akbank headquarters. Erdemir Chairman Recai Berber, Erdemir General Manager Kerim Dervişoğlu, İsdemir General Manager Atamer Giyici and Akbank General Manager Zafer Kurtul and his assistant in charge of corporate banking, Ziya Akkurt, all participated.
Erdemir's Berber said the loan would bring ongoing modernization and transformation investments to a new phase. He said the money would help establish flat steel manufacturing and rid the Turkish industry of its dependency on international supplies.
Berber said the group would proceed with improvements already launched at Erdemir and İsdemir. The investments aim at modernizing and expanding the capacity of Erdemir while transforming İsdemir into a flat steel producer.
China to Allow Stock Options as Employee Incentives
China will let Baoshan Iron & Steel Co., Huaneng Power International Inc. and other publicly traded companies use 10 percent of their stock as incentives for employees in a bid to improve corporate governance
China's securities regulator will let the nation's 1,381 publicly traded companies give shares, stock options and warrants to directors, senior managers and other employees, according to draft rules. Stock options and warrants are rights to buy a certain number of shares at a specific price during a set time period.
China is trying to improve the quality of companies to boost investor confidence after stock markets slumped for four years to eight-year lows, partly dragged down by corporate scandals and mismanagement.
State sells stake in Valcovny plechu to Mittal Steel Ostrava
The Czech government has sold its 42-percent stake in Valcovny plechu to the majority owner, Mittal Steel Ostrava MSO
Together with 17 percent of shares held by CKA and 25.4 percent of shares owned by Konpo, Mittal also bought a claim worth CZK 215.8 million.
The sale of the state-held share was decided by the cabinet last September, and the contracts were signed on July 8. Claims were transferred last week and the transfer of shares will take place in the coming days as Mittal has already paid for the stakes and claims.
The sale has been permitted by the Czech anti-monopoly office UOHS and by the European Union. The European Commission has approved subsidies for Valcovny up to EUR 9.3 million.
Fire Suspends Operations of Kazakh Metallurgical Plant
As a result of a fire at a heat and power plant in the town of Temirtau in [central] Karaganda Region, several workshops at the Mittal Steel Temirtau metallurgical plant [located in the same town] have suspended their operations, the Kazakh Emergency Situations Ministry told ITAR-TASS today.
The fire damaged about a hundred power and control cables in the cable tunnel section at heat and power plant No 2 yesterday evening. According to the Emergency Situations Ministry, the fire spread to an area of 400 sq. m. "There were no casualties," the ministry said.
Heat and power plant No 2 and the sintering and rolled metal production workshops of the metallurgical plant have suspended their operations.
Chinese Reform; European Steel Minor Upside
Impact of Chinese revaluation seen relatively minor on European steel companies, says London-based analyst. Notes move may trigger a depreciation of the euro against Asian currencies, which is a "marginal positive.
"Dynamic of the change will be that steel imports to China will become cheaper and exports from China less competitive - which is good news because the biggest fear in the market has been burgeoning Chinese supply. But sees the move adding "only about $8 or so on the steel price" which is "relatively minimal".
Nucor 2Q Earnings Rise in 28.4 Percent
Steelmaker Nucor Corp. posted a 28.4 percent rise in its second-quarter earnings Thursday on higher steel prices.
The steel company earned $322.7 million for the three months ended July 2 compared with $251.4 million in same quarter last year. Revenue rose to $3.15 billion from $2.76 billion. The average sales price per ton increased 25 percent in the quarter, the company said.
But Nucor warned investors that its third-quarter earnings will be below both the third quarter of 2004 and the second quarter of 2005, as demand drops for some of its products.
For the first six months of 2005, Nucor's earnings were $677.4 million an increase of 86 percent over earnings of $364.7 million, in last year's first half revenue rose to $6.47 billion from $5.05 billion a year ago.
In June, Nucor's wholly owned subsidiary, Nucor Steel Marion, Inc., purchased substantially all the assets of Marion Steel Co. for $108.7 million. The mill has an annual capacity of approximately 400,000 tons.
ABN Amro cuts zinc forecast
Zinc prices may average 56 cents a pound this year, lower than expected, ABN Amro Holding NV said, citing a decline in demand from steel producers and automakers and an increase in exchange inventories.
"Zinc faces lower refined metal demand," ABN Amro analysts led by Nick Moore in London wrote in a report. "Cuts announced by many steel producers, as well as automobile manufacturers, would also impact galvanised zinc requirements."
Zinc prices in London have fallen 16% since rising to an eight-year high of $1,440 a tonne March 15, partly on concern about slowing growth in demand for galvanised steel sheets used in cars and washing machines.
Global zinc consumption this year may increase by 0.7% to 7.37 million tonne, compared with a 3.8% jump last year, ABN Amro said.
Zinc prices may fall 11% next year to average 50 cents a pound, ABN Amro said. It had earlier predicted spot zinc prices would average 62 cents a pound in 2006.
Bulgarian steel plant Stomana Industry adjudicated bankrupt
Steel plant Stomana Industry was adjudicated bankrupt by the Pernik regional court on July 7, the Bulgarian Stock Exchange said on Thursday, July 21. The court has issued a general injunction against disposition of Stomana property and stayed executory process against property of the plant.
The insolvency proceedings against Stomana were initiated on a petition from the State Receivables Collection Agency (SRCA) lodged in February 2005. The agency argued that the company had defaulted on its recovery plan. At the time, Stomana's dues to the state were estimated at 11.3 mln levs, of which 10 mln levs are due to the National Social Security Institute and the remainder to the tax authorities.
A recovery plan, which was adopted in 2000 and launched in May 2001, says that the company should dispose of its assets to cover outstanding liabilities. The recovery plan expired in June.
So far, the steel company has sold more than 90% of its assets. Initially, the company's assets were expected to fetch some 42 mln levs. According to unofficial information, however, some 50 mln levs have been pocketed. The bulk went to pay wage arrears and maintenance costs.
Greek company Sidenor, part of the Viohalco industrial group, acquired Stomana's main production in 2001 for $13.5 mln, and set up the locally-registered Stomana Industry.
Molybdenum hits paydirt
The prices of Molybdenum, used as a hardening agent in steel making, have recently soared on the back of China's massive investment in new steel production. Having traded at $US2.40 a pound in 2001, molybdenum is now commanding $US36 a pound, having more than doubled in the past year.
Such growth hasn't escaped the attention of one of the world's largest miners, Rio Tinto. In the first half of the year, Rio almost trebled molybdenum production levels from a year ago to 7100 tonnes and, in June, completed an expansion of its molybdenum plant to boost recoveries.
Other miners targeting molybdenum include Oxiana, Andrew Forrest, Havilah Resources, Orchid Capital and newly listed Queensland Ores.
Peru miners feel oppressed by China's Shougang
China has billions of dollars of investments in South America ranging from Bolivia to Brazil, but none appear as troubled as Shougang Hierro Peru SA, owned by China's state-run steel maker Shougang Group.
Peruvian officials, miners and environmental groups accuse it of failing to meet its investment obligations, alienating workers and threatening China's reputation in its search for raw materials in the resource-rich region.
"Shougang has turned us into slaves," said Carolina Collantes, an impoverished sweet seller whose husband works 15-hour shifts at the mine for $13 a day. "Marcona has become a source of cheap labor to feed the iron ore production."
In 1992, when the Shougang Group paid $118 million for the state-run Hierro Peru mine 200 miles south of Lima, Marcona buzzed with expectations the company would revive the local economy. Shougang agreed to invest $150 million over the next three years, but spent only $35 million, preferring to pay a $14 million fine, according to Peru's government.
Facing more fines, Shougang invested another $88 million between 1995 and 1999 to take its total investment, including the fine, to $137 million over seven years.
"Shougang is responsible for water and electricity in Marcona. The result is just four hours of water a day and regular blackouts," says Julissa Castaneda, a senior official at Marcona's town hall. Locals and Peruvian environmental groups also accuse Shougang of tipping chemical waste into the sea, killing fish.
Union officials say there were 450 accidents at the mine last year, including 22 that left workers disabled. Five workers have died since 2002 in accidents, from electrocution and a lack of safety harnesses, the union says.
Reliance Steel quarterly profit falls
Reliance Steel & Aluminum Co. on Thursday said its second-quarter earnings fell as demand remained steady but carbon steel prices declined.
The Los Angeles-based company, which processes and distributes metal coil, bars, plates and tubing, reported earnings of $49 million, or $1.48 per share, compared with $52.8 million, or $1.62 per share, a year before. Sales rose to $816.3 million from $760.8 million a year earlier.
The company said it expects pricing weakness to continue into the third quarter.
Mittal Steel Ostrava Board Change
Mittal Steel Ostrava, a subsidiary of the world's largest steel company, has recently made changes in its board of directors.
Frantiek Chowaniec has moved from the directors' board to the supervisory board to serve as chairman.
Meanwhile, Gregor Johannes Mnstermann and Miroslav Stanč became new members of the board of directors.
The company also appointed Mnstermann as Mittal Steel Ostrava's CEO
26 dead in China coal mine blast
Twenty-six miners were killed and three injured when an explosion ripped through a coal mine in northwest China's coal-rich Shaanxi province, a local official said today. Rescue work ended last night after all the bodies of the dead were retrieved, the official with the disaster relief team said.
The blast occurred Tuesday afternoon at the privately-owned Jinsuo coal mine in the city of Tongchuan. Forty miners were working down the pit at the time, 11 of whom managed to escape shortly after the accident, Xinhua news agency reported.
The Jinsuo colliery employs about 130 people and its designed annual production capacity is 30,000 tonnes.
China Vice Premier Zeng vows to reform coal industry
Chinese Vice Premier Zeng Peiyan on Thursday vowed to reform the current coal industry by establishing large coal groups with better safety equipment, instead of scattered small shafts with poor safety standards.
"We should establish some large coal bases which have good cooperation with transportation systems and power plants," said Zeng. He also called for more investment in upgrading the coal mine equipment to save resource and avoid accidents.
He said Chinese coal industry should abandon the outdated mining method resulting in huge resource waste and heavy environmental protection, and those small mines with poor safety standard must be closed.
Coal-rich areas should strengthen the research on recycling technology to keep the balance between resource utilization and environmental protection, said Zeng.
China should speed up the reform of its complicated coal industry by transforming state-owned enterprises into standard stockholding companies. Redundant construction with low-standard production and safety capacity should be avoided, according to Zeng.
"During the reform, the immediate interests of workers must be protected in line with the policies issued by the central government, " said Zeng.
As the world largest coal producer and consumer, China's coal consumption is expected to increase by six percent this year to 2.1 billion tons, according to the China Coal Industry Association
