August, 31 2005
TATA Steel MOU with Jharkhand likely in September
The mega proposal of Tata Steel to set up a new 10-million-tonne steel plant in the state of about Rs 55 crore is likely to take shape with the signing of a formal MoU sometime in September. Tata chief Ratan Tata is likely to be present on the occasion.
Tata Steel had announced its decision to set up Indias largest steel plant in the state in Delhi on August 24. The announcement was made by Tata Steel MD Mr B Muthuraman in the presence of Jharkhand CM Mr Arjun Munda
A four member team comprising officials of Tata Steel and MN Dastur are visiting various places across the state to finalize a location as Tata Steel has decided on a time schedule of 10 days for this activity
TATA Steel, which is already engaged in putting up a 6 million tonnes plant at Orissas Kalinganagar and a 5 million tonnes plant in Bastar Chhattisgarh, has set a target of completing the first phase of 5 million tonnes of the Jharkhand project in three to four years time.
Mittal Steel proposes $11.4 bln plant in Jharkhand
Mittal Steel Co., the world's largest steel maker, has put in a proposal to build a 12 million-tonne steel plant in Jharkhand for $11.4 billion, a government source told Reuters on Tuesday.
The source said Mittal Steel had submitted a draft memorandum to the local government in the mineral-rich state of Jharkhand.
Mittal officials were not immediately available for comment, but in July Chairman Lakshmi Mittal had said his company was hopeful of signing a deal with the Jharkhand government in two weeks.
Local media reported an agreement was delayed because Mittal Steel had
insisted on exporting part of the iron ore, from the mining rights the firm would be given for the venture.
Jindal spots 3000 acres for steel plant in Jharkhand
Jindal Steel and Power Limited have submitted a proposal for acquiring 3000 acres land in Potka and Ghatshila for its proposed 5 million tonne steel plant. Vice Chairman and CEO of JSPL Mr Vikrant Gujral had a detailed discussion with Deputy Commissioner Mr Kulkarni on the modalities of land acquisition
Before the identification of land, representatives of the district and the company had conducted a joint survey and now MECON has to submit a feasibility report of the proposed project. The process of land acquisition will start once the industries director issues a letter to that effect, said sources in the administration.
Earlier, Bhushan Steel Limited had identified over 2,000 acres of land in Jamshedpur Sadar and Potka block for setting up a 5 million tonne steel plant in the district
.
Both Jindal and Bhushan have approached the departments of industries, mines and geology, water resources and environment and forests on land acquisition.
Five killed in Chhattisgarh steel plant
Five workers were killed on the spot and nine received multiple fractures on Tuesday when heavy equipment fell on them in a steel plant in Chhattisgarh. The workers were on morning shift duty at the private Real Steel Industries in Urla near this state capital. Of the nine injured, the condition of five is stated to be highly critical.
The government developed Urla Industrial Area houses 22 small and medium scale steel manufacturing and ferro alloy units. A complaint has been lodged against the steel plant owner
TATA Steel looking to buy BCCL mines
Tata Steel has approached the government with a proposal to acquire some of the mines of the loss making public sector unit, Bharat Coking Coal Ltd BCCL.
The government is willing to lease out unviable mines to private players for captive purposes. But it was not planning to sell its share in BCCL, coal ministry officials said.
The Board for Reconstruction of Public Sector Enterprises is considering reviving BCCL. It is expected to recommend that BCCL be handed over to a private or a public sector company on a management contract. BCCL suffered a loss of Rs 592 crore in 2004-05
Even though the government has put a proposal to amend the Coal Nationalization Act, 1973 on the backburner, Tata Steel is banking on the proposed amendments that will enable private participation in coal mining. As a steel producing company, Tata Steel is already eligible for captive mining of coal.
European fund to buy out UTI stake in Tata Refractories
A European fund is close to acquiring UTI-Is entire 6 per cent stake in Tata Refractories for an undisclosed amount. Industry sources said the proposed investment in the Rs 353 crore company, would provide an opportunity to the foreign fund to enter the growing domestic refractory sector.
Tata Steel holds 61 per cent in the closely-held subsidiary where the other shareholders include LIC, SAIL & UTI-I
Rs 1,000 crore refractory industry, largely dominated by Tata Refractories, is witnessing consolidation, kicked off by acquisition of the refractory business of ACC by ICICI Ventures and Industry sources expected that Tata Refractory would take a lead role in the consolidation process.
Promoted by Tata Steel and Didier Werke of Germany, Tata Refractories began production in 1958. The company posted a net profit of Rs 28.97 crore over a sales of Rs 353...29 crore in the financial year ended March 2005
Indian Exim Bank extends $50 million line of credit to Chad
Export and Import Bank of India has provided USD 50 million loan at a concessional interest rate to West African country Chad for importing steel rolling mill, bicycle plant and cotton yarn plant from India. The loan is granted under the India Development Initiative of the government that supports export of Indian goods and services to developing countries in Asia, Africa and Latin America under which Exim Bank has extended line of credits to Ghana (USD 60 million), Congo (USD 33.5 million), Mali (USD 27 million) and Ivory Coast (USD 26.8 million)
Exim Bank Chairman Mr TC Venkat Subramanian said "The LC would be used for financing export of steel rolling mill and setting up a bicycle plant and cotton yarn plant."
Baoshan Steel's Q2 net jumps 82%
Baoshan Iron & Steel Co, China's biggest steelmaker, has recorded an 82% jump in the second quarter net income because of higher prices and production driven by the nation's rising demand for automobiles and home appliances. Profit rose to 4.1 billion Yuan ($506 million) in the three months ended June 30, from 2.25 billion Yuan, a year earlier
Baoshan Steel raised prices in the first half for local units of General Motors Corp., Volkswagen AG and Electrolux AB as China's economy expanded 9.5 percent. Rising demand helped sales double to 31.3 billion Yuan.
The world's biggest steel-producing nation is forcing mills to merge and Baoshan Steel Chairwoman Xie Qihua, 61, wants to make the company one of the world's top three producers by 2010.
Profit growth may slow in the fourth quarter after Baoshan said it will cut prices to match rivals as China's steel output growth outpaces demand
BlueScope's Western Port Steel mill out for 3 months
Australia's largest steelmaker BlueScope Steel says it will take three months to fix the damage a fire caused at its Western Port steel plant in Victoria. The fire occurred on August 22 in the electrical control room for the hot strip mill and has damaged the equipments
The fire will burn a hole not less than A$20 million in EBIT for FY06, as per estimates of CSFB. No estimate has been provided by company as yet.
Spokesperson of said that BlueScope's main concern was minimizing disruption to customers and had already put in place an alternative to provide the hot rolled steel coils the Western Port normally produces a year.
"We have some stock on hand that we will use for the downstream portion of our business, as well, we will be able to source internally," Ms Harwood said.
Dunaferr to increase output to 2.5 million tonnes in 3yrs
Hungarian steel maker Dunaferr will increase its rolled steel production from an annual 1.5 million tons to 2.5 million tons within three years, due to growth in raw material supply from Ukrainian parent company IUD according to group chairman Sergei Taruta.
Donbass inaugurated the continuous casting machine at Alchevsk for $400 million last week and will start supplying Dunaferr with slabs in November to increase the input to Dunaferr for further processing by 400,000 tons in 2006 and by a total of 1 million tons through 2008.
Vallourec buys tube maker Omsco from Canada's ShawCor
French steel pipe maker Vallourec SA beat seven bidders to buy US tube maker Omsco, specialized in steel drilling tubes for the oil and natural gas industries, from Canada's ShawCor Ltd for USD 120 million. The purchase will be financed by existing credit lines, and fits with Vallourec's strategy of developing energy sector operations.
The oil exploration sector is experiencing a boom as higher oil prices make previously uneconomical oil reserves profitable, driving a spate of new drilling projects. Demand is expected to continue to drive new exploration, with the International Energy Agency IEA forecasting that global production of oil must rise from today's level of less than 80 million barrels a day to around 115 million barrels a day by 2020 if forecast demand is to be met.
"The acquisition of Omsco represents a unique opportunity for us to strengthen our presence in the high value-added drill pipe market, particularly in North America," said chairman and CEO Pierre Verluca in a statement.
The purchase continues a big spending year for Vallourec, which in January announced it would take full ownership of its subsidiary, Vallourec & Mannesmann Tubes SA, by paying 545 million ($667 million) for a 45% stake held by German industrial firm Salzgitter AG.
Omsco, based in Houston, Texas, had sales of USD 50 million in the first half of this year
ThyssenKrupp Steel opens blanks JV with Angang
ThyssenKrupp Tailored Blanks GmbH, a unit of ThyssenKrupp AG's has opened its new tailored blank production facility TKAS Tailored Blanks Ltd in Changchun, China, as a JV with Angang New Steel Co. Ltd.
TKAS currently has 20 employees and one laser welding line. A service centre is to be added before the end of this year which will start operations in 2006, featuring a blanking line, a slitting line, a cut-to-length line and storage capacities.
Tailored blanks are customized steel sheets in which blanks of different thickness, grade and coating are joined together by laser welding. These are then used in the stamping plants of car manufacturers to produce parts such as side members and floor panels. Use of tailored blanks cannot only reduce car weight by up to 40%; it also minimizes the parts count and thus helps save costs.
TKAS would be supplying blanks to auto companies for VW models Golf, Audi C6 and Audi A4, GMs Chevrolet Blazer & S10 and BMWs 3 & 5 series
Hunan Valin share transfer to Mittal Steel delayed
China's Hunan Valin Steel Group has postponed share transfer worth more than USD 300 million to Mittal Steel by more than a month. Hunan Valin Steel Tube and Wire Company said that its parent, Hunan Valin, and Mittal Steel have agreed for delay.
Mittal Steel has finalized a deal in January to take a 37.17% stake in Hunan Valin, to give the group its first production platform in China and to own an equal amount of equity in the company. Under the agreement Hunan Valin Steel Group had agreed to transfer shares that it is holding in Valin Steel Tube and Wire Company to Mittal Steel for USD 344 million, considering Yuan appreciation by 2.1%
However in June, just prior to the announcement of new regulations that prohibited foreign companies from taking majority stakes in mainland steel groups, the two parties refined their agreement and agreed to give Hunan Valin Group the controlling stake by 1% and reduced Mittal Steel's stake in Valin Steel Tube and Wire to 36.67%.
State owned Hunan Valin, based in the central province of Hunan, has an annual steel production capacity of 8.5 mln tons currently has a 74.35% shareholding in Hunan Valin Steel Tube and Wire Company
Sicartsa losses exceed US$87mn
Mexican steelmaker Sicartsa, a unit of Grupo Villacero, has lost more than US$87mn and 145,000t of production since the mining-metalworkers union STMMRM started striking on August 1
Union and company officials have not reached an agreement to end the 2,000-worker strike, which started over union complaints of contract violations.
AK Steel raises stainless steel prices
AK Steel Holding Corp. has announced that it is raising prices on "precipitation hardening" stainless steel products by about 10 percent to cover the increased costs of manufacturing, energy and transportation, for shipments beginning Sept. 19.
The steel producer said it is also keeping its raw material surcharges on stainless steel products.
PH grades of stainless steel are used in the aerospace, chemical and food-processing industries.
AusQuest identifies new iron prospect I Pilbara
Junior iron ore explorer AusQuest Ltd is waiting on a native title agreement to start drilling a new iron ore discovery in the Pilbara. AusQuest identified the significant new channel-fill pisolitic iron ore prospect from reconnaissance mapping and sampling at the Nameless prospect.
The mineralization has a strike length of about 15 kilometers with chemical analysis returning high iron grades of between 55 per cent and 58 per cent iron. The company plans to drill the prospect after it signs an agreement with native title claimants, expected by the end of the year
Trouble continues at Samancor
Two more workers have died after an accident last week at Samancor Chrome, one of the worlds biggest producers of ferrochrome, which forced the closure of one of its furnaces. So far a total of six workers had died and the plant remained shut as internal investigations were still ongoing, the firm said in a statement.
John Ferreira, Vice President of Samancor Chrome, said the furnace where the incident occurred would remain closed until Samancor completed its probe and made changes to the furnace.
The furnace, at Samancors Middelburg Ferrochrome plant, produces 200 tons of ferrochrome per day, and is one of 15 in the entire group and normally operates around the clock.
SA is the worlds biggest producer of ferrochrome, and has around 70% of chromite reserves. Samancor, owned by the privately-held Kermas Group, produces around 1 million tons each year of ferrochrome and is one of the two biggest global producers along with mining group Xstrata. Earlier this year, Kermas paid $469m to buy Samancor Chrome from BHP Billiton and Anglo American.
Hurricane Katrina effects iron ore movement in Mississippi river
Some of the shipments of Chinese lump iron ore, which gets loaded onto barges in New Orleans and traveling up through Mississippi & Illinois River to reach Lake Michigan and unloaded Burns Harbor could be impacted by Hurricane Katrina and are likely will be delayed at least four days.
A Burn Harbor spokesman said that "Any time you have a hurricane, there is a two-day shutdown period, and it takes two days to get going again,"
"So, it's four days' minimum delay if there is no major damage. If there is major damage
He added that Rain from Hurricane Katrina actually could help river shipments, particularly along the Ohio River as they are still reeling from the effects of the summer drought, and low water levels have hurt shipping
Dubai based CNO may buy thermal coal mine in Indonesia
Coal & Oil Company LLC, a Dubai based global company promoted by the promoters of the ETA-Ascon group and the Al Rostamani group, plans to acquire a coal mine in Indonesia, according to its President and CEO, Mr Ahmed AR Buhari. The mine would have a capacity of about 8 million tonnes and the company hoped to complete the acquisition in six months.
This acquisition would help Coal & Oil Company get a captive source of coal for supplying to its customers. The company's focus would continue to be India as it has a 30 per cent share of the imported energy coal market in India
Over time, CNO hoped to become an integrated energy company - mining coal, supplying coal from its own mine and from other sources, transporting coal through its own ships, providing inland warehousing and logistics facilities and setting up independent power projects, Mr Buhari said.
CNO has been. He said that in 2004-05, the company supplied five million tonnes of coal, mainly steam coal, and recorded a turnover of Rs 1,300 crore. This year it hoped to supply 8.5 million tonnes of coal, of which seven million tonnes would be to India, with its turnover increasing by about Rs 300 crore. The company sourced coal from various countries, including Russia, Indonesia and Australia.
Mr Buhari said that the company was predominantly a steam coal importer and was now looking to supply coking coal to the steel industry and is in dialogue with SAIL.
India's coal deficit was expected to go up to 160 million tonnes in 2010 from about 23 million tonnes now and apart from electricity boards, the other main importers of coal in India are captive and independent power plants, sponge iron industries, cement companies and the steel industry.
Xstrata increases stake in Falconbridge
Xstrata has announced that it has increased its stake in Canadian mining group Falconbridge to 20.01%. The increase in Xstrata's stake followed the purchase of 370,000 common shares representing about 0.1% of the common shares from a non Canadian investor in a private off market deal.
Xstrata's key interests are in copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. Xstrata produces thermal coal and has ferrochrome and vanadium operations in South Africa;
Falconbridge has copper, nickel and zinc mining interests as well as an aluminium division.
Iran Govt to offer JV for chromite mine
State owned Natural Resources Mining Development Corp. will bid out a joint venture contract to explore and develop the Dinagat Island chromite reserves in the province of Surigao del Norte to local and foreign mining companies
NRMDC Dinagat chromite reservation, covering 9,775 hectares, is a good source of metallurgical chromite that is used in steel industry and at the moment 1,000 small scale miners are operating
NRMDC spokesperson Mr Disini told that prospective bidders could get either Parcel 1, a 600-hectare area in the village of Esperanza in Lorenzo town, or Parcel 2, a 9,175-hectare area at the southern tip of the island.
Regina Ipsco worried about Katarina
Ipsco officials in Regina are concerned about the effects of Hurricane Katrina on plant in Alabama. The steel company says the facility, about 30 kilometers north of Mobile, was spared any flooding because it's slightly higher than sea level and the storm damage is minimal.
But company spokesperson John Comrie says a lot of employees may have lost their homes. Comrie says the company is making generators available to the affected workers.
AK Steel and Steelworkers agree to extend Ashland contract
AK Steel Corp and the United Steelworkers of America have agreed to extend all the terms and conditions of their current labor agreement, covering about 750 hourly production and maintenance employees of Local 1865 at the Ashland Works in Kentucky
Both sides said all planned production and maintenance work at the plant will continue uninterrupted while they work to complete negotiations for a new agreement.
"AK Steel and USW negotiators have been negotiating intensely for more than a month, and we have made significant progress toward a new labor agreement," said James Wainscott, president and CEO of AK Steel. "We have mutually agreed to a 10-day extension with the belief that negotiations can be finalized within that period," he said.
AK Steel produces flat-rolled carbon, stainless and electrical steel products as well as carbon and stainless tubular steel products for the automotive, appliance, construction and manufacturing markets.
Maverick Tube President and COO resign
Maverick Tube Corporation announced today it has accepted the resignation of Mr James Cowan, 47, its President and Chief Operating Officer. Mr C Robert Bunch, CEO, will assume the title of President. The Company has no current plans to fill the position of COO
Mr. Bunch commented, "During his nearly two and one half years here, Jim made substantial contributions to the Company and he will be missed. We wish him well in his future endeavors."
Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products like steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing used in various applications.
Brazil's CVRD may import coal for power supply
Cia Vale do Rio Doce, the world's No.1 iron ore miner, is studying using coal to supply energy because of environmental problems with hydroelectric power, the company's president said on Tuesday. CVRD, which has coal projects in Venezuela, China, Australia, Mongolia and Mozambique, could import the fossil fuel for its energy needs.
"We must seek energy where it is cheap ... the idea is to see if we can bring it to Brazil at a competitive cost. At current Brazilian energy rates, coal is competitive," CVRD President Roger Agnelli told reporters.
Agnelli was speaking after opening the 140 MW Risoleta Neves hydroelectric power station in Minas Gerais state. It is a joint venture with aluminum rolled products maker Novelis Inc.
CVRD and its partners and owners produce 2,000 MW, or 4.5 percent, of Brazil's annual energy consumption. Out of this total 800 MW is destined for the Albras aluminum smelter, controlled by CVRD, under a contract extending to 2024
Chinas downstream industry's profit to rebound
The profit rates of China's downstream industries are expected to rebound in the latter half of 2005, said Gao Shanwen a top economist
The gross profit rate of downstream sectors in the country now stands at 4.2 percent, the lowest point since 2000, Gao said, attributing this to the rocketing price of upstream products directly leading to the cost increase of downstream sectors.
The prices of some upstream products including coal, iron and steel have started to drop, which may bring a turning point to downstream sectors in the latter half of this year, Gao said.
Paraguays Acepar suspends production
Paraguayan steelmaker Acepar has suspended production in compliance with the environmental authority's (Seam) decision to cancel the company's environmental license over operational failures.
Seam ordered the suspension after verifying the plant's environmental impacts on the local community and workers. Last week the environmental authority asked the steelmaker to fix problems that have been causing environmental problems.
Seam found the following problems at the plant: insufficient dust emission controls and improper handling of solid and liquid waste, which is at risk of contaminating water basins adjacent to the plant.
Acepar directors are studying the decision's impacts meeting and would meet in next week to decide the action plan to start operating soon
Belgo Mineira reportedly interested in Paz del R
Brazilian long steel producer Belgo Mineira is interested in acquiring control of Colombian steelmaker Acers Paz del R APR reported a Colombian daily.
Directors of the Brazilian company have expressed interest in making an acquisition in the Colombian market where domestic demand for iron and steel is on the rise. The Brazilian company has on numerous occasions expressed interested in acquiring APR where the government holds 9% and workers 43% shares.
APR, which is based in Boyacdepartment's Belencito, is executing an industrial restructuring plan and boasts a 14% domestic market share for steel.
Belgo-Mineira is Brazil's second largest long steel producer with annual output of 4Mt. The company is controlled by Arcelor, the world's second largest steelmaker.
Al-Tuwairqi Steel Complex to be declared EPZ
Al-Tuwairqi Steel Complex, proposed to be spread over 220.21 acres of land at Port Qasim, will be declared Export Processing Zone EPZ as Tuwairqi Steel Mills Limited TSML is primarily based on exports.
The initial proposal for the project was received in October 2003 and the MoU was signed between the Pakistan Government and ATG on May 28, last year. According to the MoU, the entire area, i.e., 219 acres of land to be occupied by ATG be declared as export zone under EPZA Ordinance
Al-Tuwairqi Group of Companies had already acquired 220.21 acres of land on 60 years lease from Pakistan Steel against the payment of Rs 261 million for the establishment of Tuwairqi Steel Mills at Bin Qasim. The acquired land was being developed for the start of construction work of the project buildings, which is expected to be inaugurated in November.
AKER Helsinki yard to become a ferry builder
Aker Finnyards has decided to use its Helsinki yard as one of the most cost effective yards for building ferries in the industry, as the site in Helsinki has become too small to meet the demand for today s ever growing cruise ship sizes, and expansion of the dry dock is not possible, given the location in the yard in the middle of the city of Helsinki.
Aker Yards plans to focus on the assembly and outfitting of ferries and two contracts for building of ferries were recently signed with Tallink and Brittany Ferries.
Aker Finnyards is amongst world leading designers and builders of cruise
vessels and ferries as well as other technically advanced vessels. The
three yards are situated in Helsinki, Rauma and Turku.
Aker Yards is an international shipbuilding group focusing on sophisticated vessels and is one of the world's largest shipbuilders. The product range includes cruise vessels & ferries, merchant vessels, offshore & specialized vessels. Aker Yards, with a turnover in the range of euro 1.5-2 billion per year, comprises 13 yards in Norway, Finland, Germany, Romania and Brazil and has approximately 13,000 employees.
