August, 28 2005
Left Chief Mr Karat advocates WBs policies on FDI
The ruling United Progressive Alliance UPA should adopt West Bengals policies on FDI into the country, Left leader Mr Prakash Karat said. Mr Karat told reporters here that the Left Front was not against FDI per se, provided such investment created jobs and infused new technologies. Left Front would welcome such investment for increasing capital, bringing in higher technology and creating new jobs.
In this context, Karat highlighted the partys opposition to the Posco deal in Orissa, which allows the Korean steel major to export 400mn tonnes of iron ore apart from producing steel in the country.
We have also expressed reservations about allowing steel major Mittal in Jharkhand as it is insisting on rights to export iron ore deposits, which are limited and are required for our domestic consumption in the long term. Even China, which produces 272mn tonnes of steel per annum does not allow export of its iron ore deposits. With limited iron ore reserves, how can we allow these companies to export it at the cost of our own requirements? he asked.
IISI reports July 2005 crude steel production for the 61 countries
World crude steel production for the 61 countries reporting to the International Iron and Steel Institute was estimated to be 90.3 million metric tons (mmt) in July. This is 4.5% higher than for the same month of 2004.
Chinese production was 29.2 mmt in July, a rise of 28.6% compared to July 2004. Total crude steel production in China is 193.8 mmt for the first seven months of 2005. This is a rise of 28.1% on the same period of 2004. Total production in the Asia region was 47.8 mmt in July, an increase of 18.2% on July 2004.
European production shows a number of estimates due to the summer holidays. However, crude steel production in Germany was 3.5 mmt in July, a fall of 10.4% compared to the same month last year. The United Kingdom produced 1.0 mmt of crude steel in July, 9.4% lower than for July 2004. Turkey produced 1.7 mmt of crude steel in July, 0.5% lower than in July 2004.
Crude steel production in the United States was 7.6 mmt in July. This is a decrease of 9.1% compared to July 2004. YTD production in the United States is 54.5 mmt, 4.7% lower than for the first seven months of 2004. Production in Canada was 1.1 mmt, 13.8% lower than in July 2004. Total Canadian production for the first seven months of the year is 9.2 mmt, 2.7% lower than for the same period last year
Steel Giant ThyssenKrupp Trims Prices
The German steel giant ThyssenKrupp has been hit in turn by a slump in global demand, a spokesman said Friday, and has followed rivals in lowering its prices, according to a German press report.
The financial daily Handelsblatt quoted analysts who said the reductions would be in the order of 10 percent. Earlier this week, the Chinese steel group Baosteel announced it would cut prices by 10 percent in the fourth quarter of this year, the same amount chosen by world leader Mittal Steel.
Slumping demand has rapidly cooled off the steel market in the past few months, following a spike in prices owing to sharply increased demand from China. Several steel producers including ThyssenKrupp and Arcelor had cut back production in the third quarter but did not manage to stem a fall in prices.
PSMC privatization to expand its capacity to 3 mtpy
Advisor to the Prime Minister on Finance Dr Salman Shah said Pakistan Steel Mill Corporation PSMC is being privatized so that the mill could be revamped and expanded to its design of 3 mtpy.
Rising on the surge of steel prices, Pakistan Steel has seen a turnaround to record Rs 6 billion after tax profit. The payments of Rs 9 billion in the form of sales and income tax paid in last financial year has helped in boosting national economy.
AS many as 21 local and foreign companies have shown keen interest so far in the privatization of PSM. These companies belong to the countries like China, Ukraine, England, Saudi Arabia and Pakistan and hoped that more companies would seek for the privatization of Pakistan Steel Mills with passage of time.
A consortium led by Citigroup Global Markets Limited is advising the PC on this transaction. Pakistan Steel is the first integrated iron and steel works of Pakistan, which was set up with techno - economic collaboration of the former USSR. It has a production capacity of 1.1 million tones per annum with built-in potential for a total 3.0 million tones per annum capacity.
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, the Brussels-based International Iron and Steel Institute said. Europe, including nations outside the EU, makes about a fifth of the world's steel.
Europe's benchmark steel prices have plunged 33 per cent this year, the steepest decline since 1998, according to Metal Bulletin prices. China's production of the material surged 29 per cent last month, outpacing the declines in regions such as Europe and North America. India's output also rose 34 per cent.
World production rose 4.5 per cent to 90.3 million tons last month, the report said. European steelmakers have cut output in response to lower demand.
Rotterdam-based Mittal Steel, the world's largest steelmaker, will cut output by one million metric tons, or about 8 per cent, in the third quarter, Chief Financial Officer Aditya Mittal said. The steelmaker cut production by the same amount in the second quarter.
Luxembourg-based Arcelor, the world's number two producer, said it will continue to cut production in the third quarter after a 1.5 million ton reduction in the first half.
Shanxi to punish illegal coal mining more severely
Illegally-operated coalmines will be fined 1 million yuan (120,481 US dollars) for each death caused by accidents in China's major coal-producing province of Shanxi. The move aims to help reduce coalmine disasters in the province, according to Shanxi provincial government.
Shanxi spearheaded a policy to increase the compensation for each miner killed working to 200,000 yuan (24,691 US dollars) last year, and has been imitated by many other places in the country.
The province has also vowed to improve punishment for officials who fail to ensure coalmine production safety. Township officials found responsible will be removed from posts if two illegally-owned coal mines are identified in their town. The top official and those responsible will be dismissed if a deadly accident occurs at an illegally-managed mine.
In the first seven months, Shanxi witnessed 90 coalmine accidents, which claimed a total of 316 lives. Of the accidents, the six deadliest occurred at illegally-operated coalmines, claiming 183 lives.
Shanxi has closed more than 6,000 small coal mines over the past five years. The province plans to cut the number from 3,800 to approximately 2,000 in five years. The province will begin this year to phase out small mines with annual production below 90,000 tons and will no longer approve the operation of new mines with less than 300,000 tons of annual production.
Pakistan EDB recommends temp 0% duty on steel & coal
The indigenization committee of Engineering Development Board (EDB), while deliberating on the issue of acute shortage of iron and hard coal, has recommended a temporary relief in duty by reducing it by 0 percent till the steel mill resumes its normal production.
TopStelco decides to go it alone on Lake Erie wind farm plans
Stelco Inc., which is at the centre of a $350-million lawsuit after backing out of a major wind development project, has decided to go it alone with plans for a 40-turbine wind farm around its Lake Erie steel plant in Nanticoke to generate up to approximately 60 megawatts of electricity. Mr Dean Comand, who is leading the project for Stelco, said the company is committed to green energy and is trying to determine whether the wind farm will be economically viable.
Canada's largest steel producer has commenced an environmental assessment of the planned wind farm location, as required by Ontario's Ministry of the Environment.
Stelco had a 20-year plan with consulting firm Georgian Windpower to install 2,200 megawatts of wind power in the area, beginning with an initial 80-megawatt wind farm at Stelco's Nanticoke Industrial Park. But Stelco pulled out of the project on April 15, two days before Georgian Windpower was to secure $150 million in funding for the development. Georgian Windpower responded by filing a $350-million breach-of-contract lawsuit.
Mittal Steel US adjusts compensation of salaried workers
Percentage of pay to be based on personal and company performance
Mittal Steel USA is changing the pay and benefits plans for its 3,300 salaried employees to standardize compensation across its facilities. The former Ispat Inland Inc. plant, now Mittal Steel Indiana Harbor East, has been part of the Mittal Steel since late 1990s. Its corporate culture and compensation plan vary widely from those at the former International Steel Group Inc. mills, which Mittal Steel bought in April.
"Mittal Steel USA has developed integrated compensation and benefits programs that support the merger of the former International Steel Group and the former Ispat Inland, align the salaried and hourly employees and motivate employees to become a competitive advantage as the two companies move forward as one "We sought to implement and balance several principles," said Lou Schorsch, Mittal Steel USA chief executive officer.
The company announced the plan to employees early this week, informing them that their compensation packages pay, incentives and profit sharing will be changing. However, individual employees are waiting to see how they will be personally affected.
"People are struggling with it," said a Mittal Steel employee who asked not to be identified. "They haven't given anyone their base rate. There are going to be six job classes, but no one knows exactly which class they fall into. Until that happens, people are assuming the worst."
Mr David Allen, spokesman for Mittal Steel, said the base salaries for all management employees are being reviewed. There are three "managerial" grades and three "individual contributor grades" that will determine base salary levels. In addition, each employee will participate in three of the company's four incentive plans.
Puda Coal, Inc. launches aggressive campaign in US
Puda Coal, Inc. announced today that it has engaged Keating After Market Support, LLC to kick off an aggressive stock promotion campaign in the United States and Canada, beginning September 2005.
A subsidiary of Greenwood Village, Colorado-based Keating Investments, LLC, Keating AMS will provide a strategic and detailed plan to create mass-market brand awareness for Puda Coal, Inc. and establish it as an actively
traded and widely held stock.
In a move to strengthen its management team, Puda also announced it has retained Wentao Yang, a partner in Eastpride Capital Ltd., as its in-house Investor Relations consultant.
"We are positioning the Company as a major supplier of clean coal to China and expect to triple our production capacity and net revenue during the next three years," said Puda Chairman and Chief Executive Officer Zhao Ming. "Keating AMS fits into our growth strategy by helping us to create visibility and awareness for Puda's stock."
Puda Coal, Inc., through its affiliates and controlled entities, is in the business of coal crushing, preparation and cleaning and specializes in coal preparation by applying a water jig washing technology. The Company currently produces 500,000 tons of cleaned coal annually, and management believes it is one of the largest clean coal processing companies in the Shanxi province of China.
Nigeria to change risk perception & woos international investors
Nigeria which has proven crude oil reserve of 24.1 billion barrels, 120 trillion cubic feet of gas, 72 million hectares of arable land and minerals like gold, coal, iron ore and manganese, but also has a hopeless investment climate has decided, to attract international investors by offering incentives and changing the perception of investors
A three day conference which took place this week in Johannesburg has highlighted the possibilities for increased trade between South Africa and Nigeria. Nigeria is currently South Africa's biggest trading partner in West Africa and its third largest on the continent after Mozambique and Zimbabwe,
Nigeria is also planning to hold investment forums in China, India, the United States, Russia, Ukraine and the United Arab Emirates.
In an effort to attract investors, Nigeria may offer a five-year tax holiday to firms that are prepared to set up shop in the country, and a seven-year tax holiday to companies that locate themselves in under-developed regions.
Such initiatives have yet to change the perception that Nigeria is a risky destination for foreign capital, however.
Last year, the Berlin-based corruption watchdog Transparency International rated Nigeria as the third worst of states surveyed for its annual Corruption Perceptions Index. This study ranks countries according to the levels of graft that are believed to exist there. Of the 146 nations evaluated, only Bangladesh and Haiti fared worse than Nigeria.
Palladon Ventures announces restructured financing
Palladon Ventures Ltd. has announced that it has agreed with Luxor Capital Partners, LP to restructure the pending transactions covering the Mountain Lion & Comstock Iron Project
The pending convertible debenture financing will be withdrawn, and the parties will restructure the US$10.3 million plus accrued interest, closing costs and other advances outstanding under the bridge loan, which was used to acquire the Project, into a term loan at 9.25% interest payable over five years.
As a part of the restructuring, Luxor will acquire 50% of the Project, 35% from Palladon's joint venture partner Western Utah Copper Company and 15% from Palladon. Proceeds of the transaction will enable further advancement on the iron project.
Palladon recently signed an agreement to sell 1 million metric tons of iron ore over a twelve month period to a Chinese purchaser, and intends to service the term loan through proceeds of iron ore sales.
