August, 21 2005
MOIL pays dividend to Maharashtra Govt
The Manganese Ore (India) Limited MOIL a public sector enterprise under Steel Ministry engaged in mining of Manganese Ore, has declared a dividend of 60 per cent for the year 2004-05 and handed over a cheque for Rs 88.43 lakh to the Maharashtra Chief Minister. MOIL has crossed the Rs 100 crore mark in revenue earnings and recorded Rs 45.29 crore pre-tax and Rs 28.52 crore post-tax profit.
The paid up capital of the company is Rs.15.33 crore and the shares of company are held by the Government of India (81.57 per cent), the State of Maharashtra (9.62 per cent) and Madhya Pradesh (8.81 per cent).
VSP advised to look for alternative energy & water resources
Steel Ministrys Additional Secretary and Financial Advisor Mr AK Rath and National Institute of Ocean Technology (NIOT), Chennai, Director Mr S Kathiroli visited Visakhapatnam Steel Plant and advised the VSP management to explore alternative means of harnessing water and energy resources keeping in mind the expansion program of the Plant.
He felt that one should think about alternative resources when natural resources like water and energy were exhausting. Tidal energy was one of them from which huge quantities of energy could be tapped. Similarly, desalination of sea water was means to have potable water to meet the future requirements.
Indian PM unveils ambitious power capacity expansion plan
Concerned over electricity still not reaching all villages, Indian PM has set an ambitious target of adding 150,000 MW of electricity generating capacity through coal and hydroelectric in the next 10-years to overcome acute energy shortage in the country.
India, which faces a peak energy deficit of about 47 per cent, has an electricity generation capacity of 127,000 MW.
PM has also stressed on the use of non-conventional renewable energy sources for generating electricity and providing gas for cooking purpose to the rural masses.
Indian government plans coast based power plants
The government is working on developing a comprehensive scheme to create a chain of power stations along the coast which can be run on imported coal or domestic coal blended with imported coal. These power plants would be located along the Gujarat, Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra coastline. At present, just about 3% of thermal power stations 4,700 MW of 70,000 MW are located along the coast. The government has set a target of 7% for the next five years that is, 20,000MW capacity would be located in the coastal area.
The power crisis a result of mismatch between domestic coal production and power plant requirements has stressed the need to diversify coal sourcing. Dependence on imported coal is now a fact. This fiscal the power sector faced a shortfall of 20MT. For which 14MT of high heat value imported coal had to be procured. Shortfall for FY07 is expected to be at least 30MT, and imports are likely to be in the region of 20MT.
Besides, shortfall in coal production, the power ministry is of the opinion that marginal dependence on imported coal will help preserve indigenous coal reserves. Indias coal reserves are to the tune of 300bn tonnes, however, assessments show only 100bn tonnes of the reserve is exploitable.
Despite a substantial increase in power from other fuel sources like hydro, nuclear or non-conventional sources, coal is expected to retain its dominant position. Currently, coal accounts for 70% of the power produced in the country.
Deutsche Bank predicts Indian economy growth at 6% for 15 years
Deutsche Bank is the latest in a growing list of entities and commentators gung ho over the India growth story in the long run. The Indian economy could be on course to grow at an average 6% over the next 15 years. This is even if reforms are carried out at a measured pace, according to a baseline scenario projected by Deutsche Banks global research unit.
Europe would like to see India taking the lead in integrating with other Asian countries, which could help propel further growth in the region, according to the chief economist of Deutsche Bank group, Norbert Walter.
The bank has identified the structural drivers of growth for the country as human capital, opening up of the economy, growing trade alliances, lowering of tariffs and investment prospects. Indias other strength is its relatively stronger institutional framework and the macro policies being adopted now, he said.
The bank reckons that even if reforms were to be put on hold in India, the average growth of the economy would still be 4%. However, taking an upside scenario, the average GDP growth over the next 15 years could be an impressive 7.5%.
This is based on the young demographic profile of the country and a lowering of the dependency ratio over the next few years. According to Deutsche Banks estimate, India may well add 250m to the global supply of labour. Walter said the current pattern of FDI in Asia could well undergo a change once China streamlines its procedures. The bulk of FDI flows into China now is routed from Hong Kong as overseas investors are more comfortable dealing with entities there which can protect their investments.
Nucor to set up a design center at Norfolk
Nucor Steel has announced setting up of a new Nucor Detailing Centein Norflok to provide detailing and drafting services for all the Nucor divisions throughout the country, said Dirk Petersen, Vulcraft/Nucor Cold Finish general manager. Employees will be doing computer-aided design on projects of steel fabrication for the engineers and production employees elsewhere, Specht said.
There are two Nucor divisions in Norfolk, a steel mill and another that make steel structures like joists and decking for sides of building, said Mark Specht, division controller.
Raid raises stakes in post-revolution Ukraine
Rinat Akhmetov, Ukraine's richest industrialist, insists he is on holiday in Monaco and not avoiding his home country. Mr Akhmetov has not been to Ukraine in over a month, since the interior ministry announced it wanted to question him about an attempted murder in 1988.
But after a police raid at his home this week in Donetsk when dozens of masked policemen with machine guns subdued his guards and searched the premises, Mr Akhmetov's holiday could well turn into a prolonged exile. Yuri Lutsenko, interior minister, initially said the raid was to retrieve financial records in a tax-evasion investigation but later added that the police were also searching for "the leader of a group of hitmen". By connecting Mr Akhmetov - even in such an indirect way - to an organised crime investigation, Mr Lutsenko greatly raised the stakes in one of the most important conflicts in post-Orange Revolution Ukraine.
Viktor Yushchenko, the president, and his government have pledged to reverse at least partly what they see as the unfair enrichment of the former regime's business cronies. In June, the government won a court ruling reversing last year's privatisation of Kryvorizhstal, the country's largest steel mill, to a consortium 50 per cent controlled by Mr Akhmetov.
Mr Akhmetov condemned the criminal investigations as "fabricated" but insisted they were not causing him any trouble. He said he did not like being compared with Russia's former richest man, Mikhail Khodorkovsky. "Those who propose it don't believe in Ukraine. He said yesterday in comments relayed by a spokesman: "I would very much not like to believe that what is going on is a planned attack on me and my business, even though the latest events are reason to worry."
The guarded response was characteristic of Mr Akhmetov, who has been reluctant to accuse the government of revenge-taking even though he is widely believed to have been one of the main sponsors of Viktor Yanukovich, Mr Yushchenko's chief political opponent, in last winter's presidential elections. "I'm convinced that some interior ministry officials are following personal motives, but that isn't connected to the Ukrainian government as a whole," he said.
By contrast, Mr Akhmetov's business partner, Boris Kolesnikov, who was released this month after four months in pre-trial detention, has repeatedly accused the government of engaging in political repression and trumping up charges against him. Mr Kolesnikov is facing trial on charges that he directed a campaign of threats and violence to force the owners of a Donetsk department store to sell their shares to him and other associates of Mr Akhmetov, including Mr Akhmetov's brother.
Despite the multiple investigations, Mr Akhmetov has not lost his optimism. In an interview with the FT in Milan just before the raid, he said he was preparing an initial public offering of his main holding company, System Capital Management, in about two years. This would allow Mr Akhmetov to capitalise on the improved sentiments among foreign investors towards Ukraine since Mr Yushchenko came to power. Asked his target valuation for the offering, Mr Akhmetov said "like Sergey Bubka!", the Olympic champion pole-vaulter, also from Donetsk. Mr Akhmetov said he had not decided how much he would include of SCM, a vertically integrated coke, iron ore and steelmaker that also owns power plants, breweries, stakes in mobile phone companies and the Donetsk Shakhtar football team. Analysts estimate his net worth at more than $2bn.
16 trapped in flooded mine in Fengguang Coal mine
Rescue workers were racing on Saturday to extricate 16 miners trapped in a Fengguang Coal Mine near Shulan city in Jilin province which was flooded on Friday.
Jilin work safety administration official said "There were over 100 miners in the shaft when the flooding happened, but most of them managed to escape but there are still 16 trapped and right now we're trying to locate them". Investigators were also trying to find out why the state-run coal mine had flooded.
China's mines are considered the most deadly in the world with safety often sacrificed to supply the fuel that is driving the country's rapid industrialization and economic growth. China recorded about 2 700 mining fatalities in the first half of the year from explosions, shaft collapses, fires and other accidents. Independent estimates say the real figure could be far higher as mines often falsify death counts to escape closures and fines.
Polish miners protest for pension rights
Angry miners fought fierce battles with police and security forces on the streets of the Polish capital Warsaw at the end of July as Polands Democratic Left Alliance (SLD) government had announced proposals to do away with a traditional scheme allowing miners to retire early.
According to Polish law, every miner is entitled to full pension rights after 25 years of work. The government planned to raise the pension age for miners to 65the age generally set for all workers. However, the arduous work carried out by miners means that many do not live to see their 65th birthday. Others are so ill or debilitated that they are unable to enjoy their retirement.
The Polish government made a climb down and decided to retain the old pension system for miners and make an appropriate recommendation to parliament as they are unwilling to intensify their conflict with the miners when two elections are loomingparliamentary elections due on September 25 and presidential elections on October 23.
Russian steel giant NLMK plots 5bn London flotation
Novolipetsk Steel, is preparing a London listing that would value the company at close to 5 billion. Novolipetsk has hired UBS and Merrill Lynch to handle the float, which sources close to the company said could happen towards the end of the year. About 10% of the companys equity would be sold in London, although the Russian financial regulator has given the company the authority to sell up to 25% outside the country.
Sources close to the company said last night that a final decision on the float would be taken after the company knew of the fate of its bid for Erdemir, the state-owned Turkish steel group that has attracted interest from most of the worlds leading steel companies. There was still a possibility that Novolipetsk would decide not to float, a source said.
The Novolipetsk deal is also likely to catapult its majority shareholder, Vladimir Lisin, up the list of the most wealthy oligarchs. In most rankings Lisin, who controls 95% of Novolipetsks equity, is rated No 4 in the country behind Roman Abramovich, Oleg Deripaska and Mikhail Fridman. But a 5 billion float would value Lisin at 4.75 billion, probably enough to take him to No 2.
The London share offering would confirm Britain as the preferred location for foreign listings for big Russian groups. In the past year Russian companies have raised more than 2.5 billion through share sales in Britain. The largest fundraising was by the Sistema conglomerate, which took 1.3 billion. Evraz, the steel group, Pyaterochka, the retailer and Novatek, the gas combine, have all listed in London in the past 12 months.
Novolipetsk is only Russias fourth-largest steel group, but it is consistently the most profitable. The company is already listed on the Russian stock exchange, but its shares are illiquid, with relatively few changing hands. Last year its turnover was $4.5 billion, and earnings before interest, tax and depreciation were $2.57 billion. It is also regarded as a high-quality steel maker, and is in the middle of a $1.3 billion program of plant upgrades.
Privat would compete for Kryvorigsteel & Nikopolskiy
Ukrainian Business group, called Privat would participate in the privatization tender for the Kryvorskiy Steel Processing Plant per an announcement made by Mr Ihor Kolmoyskiy, one of the group co-owners. He also informed that Privat would participate in the tender for Nikopolskiy Ferrous Alloy Plant also
Privat is planning to bid as a consortium but has not decided on partners. Privat did not exclude the possibility, that Alexander Mashkevich a Kazakh multibillionaire may become the partner of Privat in the pool.
Mr Kolomoyskiy also confirmed that as per his information, discussions in regard to Kryvorig privatization took place in Sardina among Ukrainian oligarchs namely Mr. Abramov, Mr. Pinchuk, Mr. Vekselberg and Mr. Grygorishi. The Sardinia group tried to agree the conditions for creation of the alternative pool in order to participate in the tender.
Mittal Steel & Arcelor have already confirmed their interest in Krvvorig and this announcement takes the tally to three participants. Evraz, Severstal and US Steel are yet to make any announcement in the matter.
BOMAC sold to managers
Longtime employees Kevin Knecht and Mark Pauls have purchased BOMAC, Inc. from former president Jeffrey Randolph who has retired. Terms of the sale were not disclosed. Knecht and Pauls share equal ownership of BOMAC.
Knecht has worked at BOMAC for 12 years. Most recently he served as the companys production and operations manager. Knecht is now president of BOMAC. Pauls has worked at BOMAC for nine years, serving as project engineer and engineering manager. He is now vice president.
Founded in 1959 by two former Carrier employees whose first names Bob and Mac combined to make BOMAC, the company makes industrial controls. BOMAC, Inc. designs, builds, installs, and repairs the controls that let companies do everything from roll steel to wrap candy.
Iran to implement 148 mining development plans
Some 148 projects in mines and mineral industries would be developed during the Fourth Five-Year Socio Economic and Cultural Development Plan, announced Deputy Head of Iran Mines and Mineral Industries Development and Renovation Organization (IMMIDRO) for an investment of $8.9 billion.
By the end of the development plans, the amount of the raw steel be produced from these development projects would hit 28.9 million tons. The iron ore concentrate to be produced in the same period are slated to reach 44.1 million tons.
Pakistan opens pipelines projects to foreign companies
Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon has said Pakistans oil and gas sector has opened for local and foreign investors and invited China Petroleum Engineering and Construction Corporation (CPECC) to participate in the upcoming cross border gas pipeline projects, construction of gas storages and exploration activities for mutual advantage.
China Petroleum had already participated in the construction of PARCO White Oil Pipeline (WOPP) from Karachi to Mehmood Kot and also offered in the biddings for construction of oil pipeline from Lahore to Taro Jabba near Peshawar.
