August, 25 2005
Indian steel tigers on a dragon trail
India, currently the worlds 8th largest steel producing country with nearly 33 million tonnes of crude steel output in 2004, is poised for a tangential growth with announcements of capacity expansions as well as green field projects and is increasingly being talked of as the next China. Government is also working on regulating massive growth expansion by announcing National Steel Policy soon to reach 110 million tonnes by the 2019-20.
The Government, other than planning expansion in Public sector steel mills like SAIL & RINL, can help the sector grow by removing impediments and bottlenecks, particularly on the supply side of the industry. The new policy is likely to include a series of measures designed to improve the availability of raw materials such as iron ore and coal. It will also encourage the creation of infrastructure such as the roads, railways and ports that will be required to support the steel industrys growth. Iron ore supply is a sensitive issue in India. The country has large reserves of high-grade material, but some of the mining, processing and transport facilities are inadequate and the government is expected to take steps to restrict exports in order to ensure a sufficient supply to the expanding domestic industry. The supply of high grade coking coal is another big issue and can be only resolved by investments overseas
Indias low per capita steel consumption of less than 30kg when compared with the world average of about 150kg is very low. But it has increased by more than 50% in last 10 years. To match with the announced targets of steel capacity, it has to grow to a level of 100 kg in the next 15 years, which indeed is a tough task due to large population base in rural areas, where the steel consumption is negligible
Fuelled by the profits made during last year, all most every steel company, including state owned companies have charted very ambitious capacity expansion plans. The race is also joined by some of the prominent non steel business houses. But the most important factor has been the availability of high grade iron ore, resulting in announcement of mega projects by global steel players.
So far, the investment announcements made by various companies add up to more than 135 million tonnes up to 2020, spread mainly in five iron ore rich states with Orissa and Jharkhand taking the major share of 55 & 40 million tonnes respectively, followed by Chattisgarh at 15 million tonnes, Karnataka at 10 million tonnes and Andhra Pradesh at 7 million tonnes.
The industry leaders feel that many of the announced expansion would not leave the board rooms, but India would more than double the capacity to about 65-70 million in next 3-5 years.
The question is not that how much of it will happen, but would the increased capacity be supported by domestic demand. It is relatively straightforward to install new steelmaking capacity, but not easy to develop new markets to consume it. The clear danger is that India will build up a large additional steel producing potential without having a commensurate domestic market. The country could then become a significantly bigger exporter, with potentially disruptive consequences for steel markets in other regions of the world
Tata Steel MD expects product prices to rise
Tata Steel Ltd MD Mr B Muthuraman said that he expects domestic steel prices to rise a bit soon, in line with the global trend.
However, he declined to comment when asked whether the company would revise steel prices from September 1.
Merger of NINL with SAIL again on cards
The Committee of Secretaries has recommended the merger of Neelanchal Ispat Nigam Ltd with SAIL. Orissa Government has also seemed to have supported the merger of NINL with SAIL instead of RINL.
Accordingly, the Secretary, Disinvestments, has been asked to process the merger proposal and to appoint a Merchant Banker for fair valuation of NINL
SMS Demag completes BOF gas recovery plant at JSW
SMS Demag AG, Germany, has successfully commissioned a BOF gas recovery plant for two 120-ton BOF's at Jindal South West Limited Toranagallu, India.
The newly established plant includes two BOF-specific gas changeover stations, a gas holder, pressure boosting station with two pressure booster fans, safety equipment and instrumentation.
The BOF gas recovery plant allows the recovery of more than 120 million cubic meters per year of highly energetic gas from the oxygen blowing process of the BOF's. This gas will be used for power generation in the works' own power station.
Use natural resources judiciously says Tata Steel MD
Opposing export of iron ore, Mr B Muthuraman, MD of Tata Steel, said that India should use natural resources judiciously and conserve them for future projects. "Natural resources are limited in quantity. All the industrialized nations conserve their own reserves, and, in fact, import from countries that have lesser utility for them," Mr Muthuraman said.
He added that India was poised towards industrialization, and it was even more imperative now for the country to use its iron ore reserves more judiciously. "The demand for ore is going to rise manifold in the years to come. Since the resources are limited, we should conserve our resources and not open them for use by people whose sole purpose is to have control over them," Mr Muthuraman said.
To a question on the process of auction for allocation of coal blocks, he said: "Strategic things are seldom auctioned. Auction is a process adopted only when you don't worry about the buyer. Auction is not the right process when you want things to go to the right people."
Echoing similar views, Mr Naveen Jindal, Chief of Jindal Steel, said coal blocks and ore reserves should go to investors who would do value addition or establish plants. "The reserves should not go into the hands of those whose sole purpose is to sell it again for the purpose of making money"
IISCO plans to upgrade logistic facilities
IISCO, now a unit of SAIL is planning to set up new and to up grade existing transportation and logistics facilities in view of the proposed capacity expansion of its Burnpur plant from the present 0.55 mt to 2.2 mt of hot metal by 2011-12 and increased requirements of raw materials including iron ore. The plan entails construction of new railway lines and installation of new railway exchange yards, conveyor systems and tipplers etc
IISCO is thinking of appointing RITES as a consultant to prepare a report, similar to the one done by them for BSP, whose capacity is also planned for an increase by 2 million tonnes by 2011-12, but the final decision is awaited
The iron ore requirement is estimated to rise to 3.47 million tonnes comprising of 1.27 million tonnes of lump & 2.2 million tonnes fines and coking coal to 1.9 million tonnes comprising 1 million tonnes of imported coal and 0.9 million tonnes of indigenous coal.
The transportation of these materials would require additional wagons, rail line and supporting facilities like mechanical unloading systems and conveyors etc
The creation of new handling facilities including new railway lines and conveyors at Chiria iron ore mines, whose production is to be increased from the present 0.5 million tonnes to around 7 million tonnes would also be part of this plan. Right now, the iron ore raised at Chiria mine is transported by road to Monoharpur, the nearest railhead, covering a distance of 30 km for onward dispatch to plant by rail.
Orissa yet to seek centers nod on Posco deal
Pohang Iron and Steel Company (POSCO) of South Korea has a pact with Orissa to set up a $12 billion steel plant in the state, including a request to prospect iron ore, but the state is yet to seek the centers nod as Mines Minister Sis Ram Ola has not received any proposal so far. "The ministry of mines grants prior approval in respect of scheduled minerals under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957,"
He added that "The ministry of mines will examine the proposal in detail, in accordance with law and consultation with concerned ministries when an application is received, duly forwarded by the state government"
Orissa seeks to minimize tax loss through branch transfer
In a bid to augment tax collection, the Orissa government has asked the Rourkela Steel Plant to reduce sale of metal through branch transfer from the existing 70 per cent to 30 per cent within a month
The issue was discussed at a high-level meeting chaired by finance minister Mr Prafulla Chandra Ghadei, where he said that branch transfer from these PSU's has increased over the years as a result of which the state is losing 4% CST collection
RSP is transferring their finished products to stockyards in other states from and selling the material there. Orissa does not get any revenue towards CST on these branch transfers while the state in which the material is sold gets the State sales tax
In 2004-05, the inter-state sale of RSP was Rs 1385.2 crore against branch transfer of Rs 2491.08 crore. In the first five months of 2005-06, the sale of material through branch transfer by RSP has gone up alarmingly as against inter state sale of Rs 204.94 crore, the branch transfer was Rs 1139.38 crore.
Another public sector plant NALCO is also facing similar issues
L&T to partner domestic oil giants for global bidding
Larsen & Toubro L&T is seeking alliances with ONGC, IOC and GAIL for bidding in international projects. The initiative will give an impetus to L&Ts hydrocarbon division, which has a turnover of Rs 2,500-3,000 crore. L&T has already started working on a consortium model.
L&Ts consortium with Outokumpu Technologies of Germany and Paul Wurth Italia won Rs 1,550-crore contracts for the expansion of Tata Steel recently
L&T is attaching huge importance to its international operations and set a target of trebling its international business turnover to Rs 4,500 crore from the current Rs 1,500 crore in five years.
NALCO planning Al smelter in Gulf
India's second largest Aluminum producer, National Aluminum Co Ltd, plans to set up a 250,000 to 300,000 tonne Aluminum smelter in a Gulf country by 2009-10.
NALCO is already in the midst of a $1 billion project to boost the capacity of its aluminum smelter in the eastern state of Orissa by 115,000 tonnes from 345,000 tonnes. It is also raising alumina production capacity to 2.1 million tonnes from 1.575 million, bauxite mining to 6.3 million tonnes from 4.8 million and power generation to 1,200 megawatts from 960 MW.
Mr CR Pradhan, Chairman said "We hope to set up the smelter by 2009 or 2010, by that time our expansion at home will be over and we will have surplus alumina to supply for the smelter in the Middle East. NALCO was in talks with Qatar, Oman and Abu Dhabi Governments for its Aluminum smelter.
Three financial consultants in fray for Iran pipeline
KPMG International, Ernst & Young and Standard Chartered bank are the three financial consultants short-listed by Indian Oil Corp for the multi-billion dollar Iran-Pakistan-India gas pipeline project.
"Out of five who had bid, we short-listed these three for making detailed presentations on the international best practices in pipeline projects and their proposals," Indian Oil finance director S V Narasimhan told reporters on Wednesday. "We will finalize the financial consultants by month end or the beginning of September," he said.
The selected consultants would be given time till November to present project models for the execution of the natural gas pipeline project, now estimated to cost over $7 billion given the rise in input costs of products like steel. The project design would have to address security concerns, a financing model for the execution of the project and work out a formula for ensuring delivery of natural gas at India's border at a price lower than the imported liquefied natural gas (LNG) among other factors.
India is committed to having in place technical, legal and financial consultants ahead of the second round of the India-Pakistan joint working group meeting in Islamabad next month. While Indian Oil has been given the task of appointing the financial consultant, gas infrastructure Major GAIL will nominate the technical and legal consultants by month end.
BHP Billiton Announces Record Profit of $6.4 billion
Billiton announced record full-year net profit of US$6.398 billion up 89.3% from US$3.379 billion a year earlier with 27.5% increase in sales to US$31.8 billion.
Chief Executive Chip Goodyear said demand is rising aggressively for key commodities such as iron ore and coking coal. Iron ore prices are moving higher in China and elsewhere, he said, while coking coal prices are holding with some slight fall in the spot price of late. BHP's profit was led by carbon steel materials, where operating earnings rose 148 percent to US$2.82 billion buoyed by high iron ore and coking coal prices.
Looking ahead, the company said in a statement that commodity prices will inevitably "ease from their highs as demand growth slows and new supply comes on stream although we continue to expect prices to remain high by recent historical standards".
BHP Billiton, which is listed on the Australian and British stock exchanges, employs some 35,000 people in 20 countries around the world. The company was formed by the 2001 merger of Australia's BHP and British-based Billiton.
Baosteel's 15% cut add to pricing pressure on industry
Baosteel, China's largest steelmaker cut the prices of its main products by up to 15 per cent yesterday, the latest sign that the mainland industry faces significant overcapacity. Most other Chinese steel-makers have already dropped their prices, but Baosteel's cut for the fourth quarter was larger than expected and could add to pressure on the industry to lower prices. The price cuts leave Baosteel's products at a premium to spot prices in China more so as the Baosteels products are of higher quality.
Baosteel's pricing decisions will be closely watched as Chinese demand for steel was one of the main factors in the sharp rise in prices between 2002 and 2004. This price cut means Baosteel are saying they do not expect prices to start rising again soon
Global Steelmakers, such as Arcelor and Mittal Steel, set their annual contract prices early next year, and it is unclear whether prices will rise or fall. Arcelor and Mittal have been cutting production in an effort to protect spot prices, but the negotiations are expected to be strongly influenced by the cost of raw materials such as iron ore and coking coal, which have risen sharply in the past year.
Turkish consortium formed to bid for Erdemir
A domestic consortium of investors backed by Turkey's powerful Union of Chambers and Commodities Exchanges (TOBB) yesterday unveiled a formal partnership to bid in the upcoming privatization of state-run steelmaker Erdemir. The partnership is called EOOG, an acronym of the Turkish name for the Eregli joint venture group, named after the town where Erdemir is based.
Rather than a stance against foreign investors, the partnership has three main concerns driving its bid for Erdemir, Chairman of TOBB announced. First of all developing countries need a strong iron and steel sector; second, for competitive power, Turkey needs the encouragement of a strong partnership culture; and third, the country's political influence as a world and regional power would be enhanced by having a global company
The list of investors in EOGG may grow before the final bidding process gets under way but now includes 34 firms that already buy iron or steel from Erdemir. Spokesmen for EOGG could give no precise data on the group's financial resources but an Executive board member Mr Metin Kalkavan, a shipping magnate revealed that a $50 million minimum investment is required to join the group with the limit of $1 billion per investor and no single shareholder is permitted to control more than 9 percent of the shares.
However deep their pockets, they certainly face richer rivals for Erdemir in the likes of Mittal, Arcelor and Corus, three top global producers that have paid up for the tender process.
Turkey last year imported some 5 million tons of steel and steel products, a significant drain on its foreign reserves. By increasing production to 10 million tons by 2010 and to 15 million tons by 2015, the new partnership can ensure a domestic supplier for most of Turkey's steel demand
Erdemirs 7,500 workers last year produced more than 3.5 million tons of steel and earned $473 million last year on gross revenues of $3 billion. The firm has a market capitalization of $2.5 billion, though any buyer of the state's shares is expected to pay a premium to gain control of the company.
Turkey's Privatization Administration plans to sell off Ankara's 46 percent stake in Erdemir next month, with final bids due on Sept. 24.
Europe steel output still falling
European steel production fell for a sixth consecutive month in July, as producers including Mittal Steel and Arcelor cut output to shore up plunging prices. Production in the 25 members of the European Union fell 9.4 per cent from a year ago to 14.4 million metric tons as per IISI
Europe, which accounts for almost a fifth of the world's steel output, has been most effected region in the world by low steel prices in last six months. Europe's benchmark steel prices have plunged 33 per cent this year, the steepest decline since 1998, according to Metal Bulletin prices.
European steelmakers have cut output in response to lower demand and Mittal Steel will cut output by one million metric tons, or about 8 per cent, in the third quarter, similar to cut in Q2, CFO Mr Aditya Mittal said. Arcelor said it will continue to cut production in the third quarter after a 1.5 million ton reduction in the first half.
Supply deficit to support tin at current levels
The global tin market will continue to see a supply deficit in 2005, but that is unlikely to drive up tin prices to the levels seen in 2004. However, strong demand and low inventory levels, factors that fueled last year's rally, still exist and could support the market around current levels, limiting further downside.
Tight supply and speculative fund buying drove tin to a 15-year-high of $9,700 a metric ton on the London Metal Exchange in May 2004, a rise of nearly 150% in just two years. Prices have eased considerably since then. And London Metal Exchange three-month tin was trading in Asia at $7,100/ton Monday, nearly 20% below last year's average LME price, while tin stocks in LME warehouses are hovering around 5,000 tons, nearly a third of the level in June last year.
World tin usage was 330,000 tons in 2004, while mine production fell short at 276,000 tons, according to ITRI Ltd., formerly known as the International Tin Research Institute. This led to a surge in production with the emergence of many independent small smelters in Indonesia, a major producer of tin.
Demand for tin in recent years has been boosted by the move to lead-free solders, prodded by legislation in China, the European Union and Japan. The conversion is expected to be almost complete in Japan and Europe by the end of 2006. Solders that typically contain more than 63% tin are being replaced with solders containing more than 95% tin because of environmental concerns. Solders now account for more than a third of total tin consumption. There is also rising demand from China on the back of increasing production of tinplate for food and beverage cans, as well as its enormous appetite for electrical goods.
Since March, China turned a net importer of tin from being a net exporter earlier. Tin imports into China jumped nearly 130% to 16,679 tons in the first half of this year, while its tin exports fell 26.6% to 15,014 tons, according to data from Chinese Customs.
Output at Peru's Minsur S.A., the world's largest tin producer, is expected to be flat this year. No new production is expected to come on stream anytime soon, as there has been little investment in tin mining during the past couple of decades
EU may impose tariffs on electrical steel from US & Russia
The European Union may impose tariffs of up to 37.8 percent on some U.S. and Russian steel used in the power industry to protect EU producers of electrical steel from cheaper imports. The major producer of electrical steel is ThyssenKrupp in Europe
The five-year "anti-dumping" duties on silicon electrical steel target exporters such as AK Steel which faces a 31.5 percent levy, and NLMK which faces an 11.5 percent tariff
Mittal Steel SA faces strike
About 1,500 workers at Mittal Steel have threatened to strike over wage inequalities at its plants, a union official said on Wednesday. The dispute arose when it was found that workers at the Vanderbijlpark plant work a 45-hour week while being paid for 48 hours. This benefit does not apply to workers at the Vereeniging plant. The discrepancy was brought to the attention of Mittal Steel management and the remuneration of night shift workers at the Vereeniging plant was amended, however, no adjustment was made to the remuneration of day shift workers.
Mr Jaco Marais, a spokesman for the metal workers represented by the Solidarity trade union said about 350 workers at its Vereeniging plant south of Johannesburg were unhappy at being paid less than their counterparts in main plant at Vanderbijlpark for doing the same type of work. The pay differed by up to 600 rand per month and the problem is exacerbated by the fact that workers from the Vanderbijlpark plant who are transferred to Vereeniging continue to receive the higher wage
He added that workers at some of other plants would join the 350 workers at Vereeniging in sympathy over their grievances if the strike went ahead, bringing the total to 1,500 workers. He said the strike would affect Vereeniging, Newcastle and Saldanha plants, and operations in Pretoria, but would not affect Vanderbijlpark, where the firm is headquartered.
Mr Marais said that Solidarity workers will go on strike within the next week if this is not resolved and no date for the possible strike had been set yet. Solidarity was also seeking the support of the bigger National Union of Metalworkers of South Africa (NUMSA).
NUMSA spokesman Dumisa Ntuli said his union had not taken a decision on whether to join Solidarity or not.
Mr Tami Didiza, Mittal Steel's spokesman said the company was trying to resolve the matter to ward off the strike. In the past, the plants operated as independent units and this explains how the different wages came about. The management is trying to correct these anomalies and it is "unlikely" the strike would go ahead.
Mittal Steel SA said that it had not received any official notice of pending Solidarity strikes at several of its plants. He added that the company disputed that "a strike certificate issued by the Centre of Dispute Resolution of the Bargaining Council" was valid. "Mittal Steel SA disputes whether the Bargaining Council had the jurisdiction to consider the dispute," he said. We are of the opinion that the certificate was wrongfully issued." Didiza expected the commissioner would issue "his ruling on this point before Thursday".
He confirmed that Mittal Steel SA - formerly Iscor - and Solidarity had discussed the working hours of certain staff at the Vereeniging plant. "The company is not attempting to 'hide behind' a three-year agreement which excludes negotiations on any conditions of service that have a cost impact," he said.
Mittal Steel, Africa's biggest steel maker, has about 10,700 workers and produces about 6.3 million tonnes a year.
Corus H1 earnings likely to be triple on higher steel prices
Corus Group Plc, UK's biggest steelmaker, due to announce H1 results today at 7 a.m. London time, may report first half profit more than tripled to a record. Net income estimate is 373 million pounds ($671 million) from 100 million pounds in the year earlier period. Mr Varin is likely to announce that second half profit will be lower because of a surge in raw material costs.
Corus CEO Mr Philippe Varin, who has joined Corus in May 2003 after about 25 years at Pechiney SA, a Paris based aluminum maker has taken many measures to reduce costs by trimming Corus's workforce and concentrating its UK steelmaking operations into three sites, down from five. Mr Varin is also trying to sell assets including its aluminum unit, which Pechiney offered to buy for 861 million euros before Dutch workers unit won a court battle to block the sale in March 2003 and would have made Corus debt free
Corus has recently announced that it may reopen a disused coal mine in the UK and buy an iron ore mine in Norway to secure supplies of raw materials for steelmaking.
Corus was created from the merger of British Steel Plc and Royal Hoogovens of the Netherlands in 1999.
Mr Wilbur Ross indicates strong interest of Mittal Steels in Erdemir
World steel markets giants are awaiting the tender for the sale of 51 percent stake in Turkeys biggest steel producer Erdemir.
Mittal Steel is one of the13 pre-qualified bidders and Mr Wilbur L Ross, its Executive Board Member and Founder & Chairman of former ISG has confirmed strong interest of Mittal Steel as it is in line with their companys EU strategy and said that Erdemir will be our crowns the most precious gem
According to Mr Ross, the Erdemir can only stand strong by becoming a global player. The companies that accept consolidation will have the chance of obtaining more competitive advantages and reaching a more stable and sustainable future. The key is to find the right partner.
Mr Ross indicates that Mittal Steel has all the competence required to purchase Erdemir and its past experience of 15 completed privatizations would be a major advantage. Mittal Steel provides assistance in technology and infrastructure to the companies it acquires and enhances their raw material and market means by using its global advantages.
BHP Billiton to close HBI plant
BHP has announced that it would permanently close the hot briquette iron facilities at its Boodarie Iron plant in Port Hedland, Western Australia. The decision follows a detailed review of options for the plant, which included partnering with another organization in the resumption of operations, selling the facility for conversion to another use, or closure. Operations at the Boodarie Iron plant have been suspended since May 2004 following an industrial accident which resulted in the death of one employee and severe injuries to two others.
BHP Billiton Iron Ore President Graeme Hunt said Unfortunately, the failure to consistently achieve the financial and technical targets announced in 2000, coupled with the economic impact of these proposals, left us with no alternative but to close the hot briquette iron facilities and mitigate our financial exposure through on-selling the contracted gas.
It is expected that work on the demolition of the hot briquette iron facilities will commence early next year following the receipt of State Government approvals. Demolition is expected to be completed late in 2008 and rehabilitation of the site will commence immediately thereafter.
The closure of the hot briquette iron facilities will necessitate a charge of US$266 million in the accounts for the year ended 30 June 2005. This charge is primarily related to the settlement of existing contractual arrangements, plant decommissioning, site rehabilitation, redundancies and other costs associated with closure.
China's forex reform to modulate raw material market
China is expected to see the supply and demand of major raw materials tend to be balanced to some extent thanks to the appreciation of its currency by a modest 2 percent a month ago, a step to reform the foreign exchange rate system.
In the short term, according to market observers, the import of raw materials will enhance because of a substantial reduction of import cost.
The stronger yuan, on the other hand, will lower the competitiveness of Chinese products as China's exports of raw materials are mainly primary products.
The comparatively cheap imports and weakened demand would lead a drop in the prices of raw materials in China.
Under such circumstances, the price of steel, which has been falling since April is unlikely to rebound soon though domestic demand remains strong.
Spain Becomes World-leader in Wind Power
The Spanish wind power industry is on a roll. From just over 200 MW in 1997, the Spanish market has been steadily growing at annual rates of more than 30 percent. Last year Spain reached a record level of 2,065 MW installed, a 33 percent increase on 2003, taking the total to 8,263 MW, and leading the world for the first time, just pushing ahead of the previous leader Germany.
As a result of its continued success, the previous Government target of 13,000 MW installed wind capacity in 2010 has been updated to 20,000 MW in 2011. In 1999, the target was 8,900 MW by 2010, considered ambitious at that time. The Government's new target would see wind energy supplying 15 percent national electricity consumption, up from 6.5 percent today.
More than 500 companies are now involved in the Spanish wind energy sector, with about 150 factories manufacturing turbines and their components across the Spanish regions.
Brazil's July crude steel production down 12.5% on year
Brazil's crude steel production fell 12.5% in July compared with a year earlier, to 2.45 million metric tons, the Brazilian Steel Institute (IBS) said Wednesday. In July last year, by comparison, production stood at 2.83 million tons.
Flat-rolled steel output declined 9.2% by the same comparison, to 1.79 million tons.
Crude steel production between January and July came in at 18.42 million tons, down 2.9% from 18.96 million tons in the comparable period of 2004, IBS said.
Sasol produces 1.5th billion barrels of synthetic fuel from coal
Sasol has produced almost 1.5 billion barrels of synthetic fuel from about 800 million tonnes of coal since the first sample of synthetic oil from coal was produced fifty years ago at its Sasolburg plant near Johannesburg in South Africa on 23 August 1955.
Regarded as a world technology leader in the production of coal-to-liquids CTL, Sasol operates the world's only commercial scale synthetic plant at Secunda, where it produces 150 000 barrels of liquid fuel per day. Sasol currently supplies about 28% of South Africas fuel needs from coal
Sasol has pioneered the commercial application of Fischer-Tropsch technology since the early 1950s and built first petrochemical plant at Sasolburg and began producing fuel based synthetic fuels and chemicals. Sasol is global technology and innovation leader in this area and is poised to deliver the world's cleanest diesel early in 2006, when first international commercial scale gas to liquids GTL plant at Doha in Qatar commences production. GTL diesel is virtually sulphur free and has been proven to be far more environmentally benign than existing diesel
Miner killed in Siberian methane blast, investigation ongoing
The governor of the Kemerovo region, Aman Tuleyev, has ordered authorities to set up a commission to investigate the reasons behind the methane explosion in Koksovaya mine in Kuzbass, the world's major coal basin in Kemerovo Region in Western Siberia which killed one miner
Experts have not yet established the reasons of the accident as the miners were using hydraulic mining technology for coal extraction and methane generally does not explode in such cases
Wilbur Ross fund boosts stake in UK Coal Plc
A fund managed by US financier Wilbur Ross on Wednesday disclosed in a regulatory filing to the UK Takeovers Panel that his fund that it has purchased an additional 400,000 shares in UK Coal Plc, boosting its stake to 3.3 percent in the British mining company and now holds 4.9 million shares
Ross, who is known for buying and reviving distressed steel, coal, textile and financial companies, said that he began buying shares in UK Coal in late June but has no immediate plans to attempt to buy the company or press it to change its strategy.
He called the investment "friendly." He said the fund spent about $15 million to build up the stake since June. "We think there is value there," said Ross. "It seems to be a company that is turning itself around. And a lot of coal mining properties that have played out appear to have some value as real estate. "This is not hostile," added Ross. "We're on friendly terms with them. We have no concrete plans about anything else right now."
Inco says Voisey's Bay on schedule despite spat
Inco Ltd. played down threats on Wednesday from Canadian native and political leaders that they may disrupt the start of its large Voisey's Bay nickel mine because of a spat over workers' travel benefits. "We're forging ahead at Voisey's Bay. We have begun blasting ore and are looking forward to producing our first concentrate in the next few weeks," Inco spokesman Steve Mitchell said.
The Voisey's Bay mine in Newfoundland and Labrador province on Canada's Atlantic coast is expected to produce 50,000 tonnes of nickel a year. That would make it one of the world's biggest sources of nickel, which has been in short supply in the past two years and is a key ingredient in stainless steel.
Voisey's Bay is important for Inco as it strives to expand and replace declining output from its aging mines in Canada. The deposit, which Inco bought in 1996, has taken many years to develop not least because of a standoff in the late 1990s between the company and the provincial government, which demanded that the mined ore be processed in the province.
Minnesota Power locks with Mittal Steel US
Minnesota Power has agreed to a long term contract with Mittal Steel USA to provide all electric service needs through 2012 for Mittal Steel's production facility near the northern Minnesota town of Virginia. Mittal Steel USA operates Minorca Mine on the Iron Range, and is Minnesota Power's fifth largest customer.
Minnesota Power is a subsidiary of, a Duluth based company that provides energy services in the Upper Midwest and has significant real estate holdings in Florida.
The agreement is subject to regulatory approval by the Minnesota Public Utilities Commission.
Cow manure eyed as alternate fuel source in US
As oil prices soar, cow manure is getting more attention as an alternative fuel source, particularly in Texas, the country's biggest producer of cow patties which is being used as a fertilizer. This is a result on renewed focus on renewable energy sources as an alternative to coal or natural gas, which is becoming expensive day by day. Sixty-dollar-a-barrel oil invokes a lot of interest in $10 barrel oil for bio mass energy. Researchers are trying to figure out the best process and mix of manure to create the most useable heat and energy. Cow manure contains at best about a third to a quarter of the energy value as coal, so transporting it far from where it's produced is impractical.
The Panda Group of Dallas plans to fuel a $120 million ethanol plant set to open next year in Hereford with cow manure and other waste. The company said it will realize an energy savings equivalent to 1,000 barrels of oil per day turning manure and cotton gin waste into clean-burning fuel to power the plant. Biomass is renewable organic matter, such as manure and crops like corn, grain sorghum and soybeans, all of which can be processed into ethanol.
Murchison Metals has second shares placement
Murchison Metals has announced its second shares placement of more than nine million shares with Martin Place Securities to raise $2.75 million to raise funds for its Jack Hills iron ore project near Cue. It says another 11,000 shares placed with investors will help raise a further $3.75 million
TopKentucky county may relax coal mining rule
Environmentalists took aim yesterday at a planned federal study that some say will be used to justify changing a 22-year-old rule restricting mountaintop coal mining within 100 feet of streams as easing the restriction would result in polluted Eastern Kentucky streams, while supporters for relaxing the rules argue the change would benefit the coal industry without hurting the environment.
At a public meeting about 50 people exchanged ideas on how the federal Office of Surface Mining should study the environmental impact of the industry-backed proposal to change the regulation. However it would take 18 months to two years to reach a final decision after completion of a series of such meetings at other places I the county
The meeting came 17 months after federal mining regulators held a public hearing in Hazard on the proposed rule change, when environmentalists criticized changing the rule, which restricts dumping rocks and debris from mined mountaintops within 100 feet of a stream. Companies can mine within the so-called "buffer zone" only after showing that the debris won't damage streams. The proposed change does not eliminate the buffer zone but requires only that coal companies prevent damage to streams "to the extent possible, using the best technology currently available."
Schnitzer Steel makes change while under SEC scrutiny
Metals recycler and auto-parts retailer Schnitzer Steel Industries Inc, under a formal investigation by the Securities and Exchange Commission over improper commissions paid to purchasing managers at its Asian customers, has announced several changes
The company has named acting CFO Kelly Lang to a new role overseeing the integration of acquired assets and Mr Gregory Witherspoon will replace Lang as interim CFO until a permanent replacement can be found. These announcements are followed by changes made in last few months when Mr John Carter was named as President and CEO and Mr Kenneth Novack as Chairman replacing Mr Robert Philip who left the company and the board. The company elected Jill Schnitzer Edelson to the board but said three other Schnitzer family members resigned their board seats.
Canada's booming Coal Mining Industry in the spotlight
The coal mining boom in Canadas westerly provinces means that the flow of money into the regions industry, often from foreign sources, is set to continue. Soaring demand from Asia has buoyed on profits, and now key investments are coming in from the continent as well. And, its not just China specifically thats leading the charge to coal investments in the Great White North.
Nippon Steel and POSCO have taken on a 2.5% interest in open pit coal Elkview Mine Limited Partnership EMLP. A 10-year sales agreement between them and Elkview was made by Fording Canadian Coal Trust which through its subsidiary Fording Inc owns 60% of EMLP. Earlier this month, EMLP acquired the Elkview metallurgical coal mine from Elk Valley Coal Partnership, a general partnership between the Fording subsidiary and a Teck Cominco subsidiary. With new partners onboard, production for the mine is projected to rise by one million tonnes/year, and ultimately increasing to 6.25 million tonnes/year for the 2007 coal year and onwards.
Nigerian Govt sets up privatization team for mines
The minister of Solid Minerals Development is setting up a privatization team, which will be working closely with the Bureau of Public Enterprises BPE, to manage the sale of agencies under her ministry by combining their knowledge banks in the areas of deregulation and sectoral reforms
The Government is looking for deregulation and reforms in the mining industry, which is much more than changing the ownership to bring about self sustainability I the mining sector in the country. In the proposed privatization process, BPE would give the first right of refusal to the JV partner, if the assets are being run under a JV.
BPE would carry out actuarial valuation on both the Nigerian Coal Corporation NCC and Nigeria Mining Corporation NMC immediately
Kosovo resumes Trep mines after years of war
One of the most important pillar of Kosovos economy Trep resumed operations on Monday, six years after the NATO Troops put an end to the war in Kosovo. Minister of Energy and Mining Ethem Ceku said at the reactivation ceremony that he is confident that Trep Mines will prove to be economically sustainable and would attract private investors
Trep is a conglomerate of some 40 mines and factories in Kosovo notably including Stari Trg, one of the richest mines in Europe and the richest in the Balkans. The Trep mines have yielded for hundreds of years lead and silver ore. One of its rarest commodities is crystals.
During the 1980s, it employed 20,000 workers and accounted for 70 percent of all Yugoslavias mineral wealth and generated 25 percent of the entire regional industrial production and figured among the principal exporters of the Ex Yugoslavia. Some experts say that in the subsoil of Kosovo, one of the richest of Europe, are hidden enormous deposits of lignite, lead, zinc, non-ferric metals, gold, silver and petroleum, on top of 17 billion tons of coal.
State releases new mine land in 'coal rush'
More than 157 million tonnes of coal near in Central Queensland could be opened for exploration as the State Government is unlocking almost 54,000 hectares of land for coal exploration at Taroborah, 20 kilometers west of Emerald for open cast mining of more than 70 million tonnes of coal
Bowen Basin is experiencing the biggest mining boom Australia has ever seen.
Quest Minerals plans Coal and Gas JV with JJ Resources Inc
Quest Minerals & Mining announced its intent to enter into a joint venture with JJ Resources Inc to develop several coal and gas properties in southern Kentucky. The initial project will be 11 million tonnes of coal.
The project already has mining permits in place and Quest anticipates that it will require a total of $500,000 from both JV begin production in the new Hazzard seam in late 2005 at the rate of 40,000 tons per month.
Additional properties that Quest intends to develop with JJR, which are subject to additional financing may be in excess of 100 million tons.
Finning UK coal firm ink C$56 mln equipment deal
Canadian Finning International Inc. has secured the sale of 83 pieces of Caterpillar equipment, worth about C$56 million, to a coal producer in Britain
Finning said its U.K. division had sold the package of dump trucks, excavators, bulldozers and other equipment to ATH Resources Plc, one of the Britain's largest coal miners. The equipment will be delivered over the next 18 months.
