September, 13 2005
Scramble to bag captive coal mines
Steel, cement and power companies are in the race for 20 coal blocks and 11 lignite mines being put up for captive mining by the coal ministry.
The Tata group wants four mines for its planned steel plants at Kalingapur in Orissa, a new unit in Jharkhand and for expansion at its existing Jamshedpur facility. It is also eyeing a non-coking coal mine for a power plant in Orissa.
Ispat has set sights on 5-6 coal blocks in Orissa and Jharkhand to expand its Maharashtra works from 3 million tonnes (mt) to 5 mt. It is also planning a plant in Jharkhand to make pellets.
Steel Authority of India (SAIL) is studying the offer from the coal ministry and will take a stand later. However, the steel giants top brass said it was looking more closely at the possibility of buying stakes in high-grade foreign coal mines.
The Jindals and Essar are also in the race. Sources said the new round of allocations would be only for players who either have projects in hand or are putting up plants. Reliance Power will also seek around seven non-coking coal mines for its units.
This is, perhaps, the last time allocations will be done for coal blocks. After this, the government will revert to a new system of open bidding for user industries. The government wants to amend the Coal Mines (Nationalization) Act 1973, which will allow it to auction coal blocks not exploited by Coal India or its subsidiaries, to steel, cement and power firms through competitive bids.
Gujarat NRE acquires stake in Australian coal firm
Gujarat NRE Coke Ltd has announced that the company has entered into an agreement to acquire a stake in Australian coal producer Resource Pacific Holdings Ltd. Under the agreement, Gujarat NRE Coke will acquire a five percent strategic interest in Resource Pacific for a total investment value of $6.25 million. Besides the equity acquisition, a coal off-take agreement has also been signed for a minimum of five million tons over next 10 years
Resource Pacific owns and operates the Newpac No. 1 Colliery situated in New South Wales. The colliery contains one of the largest identified semi-soft coking coal reserves in the region.
Resource Pacific will produce approximately four million tons of coal following completion of expansion. Gujarat NRE Coke will commence the purchase of coal from Newpac No. 1 Colliery from 2006.
Tata Steel improves waste & byproduct management
Over the years, the steel major has made ample use of various waste in its business opportunities and steps have been taken to increasing recycling and reusing the waste generated in steel making which includes BF Slag, LD slag and sludge, mill sludge and scale, flue dust, lime fines, dolomite dust, undersize limestone, refectory waste, coal tar sludge and BOD sludge.
In 2004-05, Tata Steel generated 700 kg of various waste products excluding fly ash for the production of one tonne of crude steel. Officials said 83.16 per cent of the waste is utilized, either through recycling and reused in own processes, or sold as raw materials to other industries, while the remaining wastes are sent for safe sand filing. The total production of crude steel in 2004-05 was 4,103,715 tonnes, while 2,887,363 tonnes of waste was produced during the same period.
About 92.48 per cent of the blast furnace slag generated was used, primarily for cement making. The facility enhancement of the D and F furnaces resulted into over a 10 per cent increase in slag granulation.
As far as the usage of LD slag is concerned, 74.32 per cent was used in 2004-05. These were primarily used as flux material at Tata Metallics Limited, used in sinter production and in mini cement plants.
On the other hand, all the dust and sludge, which originate from various points in the processing of iron and steel was used. These contain iron, lime and carbon, which enable a large quantity of these wastes to be recycled within the steel works.
As mill sludge from rolling processes contains a very high level of oil and is a major source of HC emission from Sinter Plants, Tata Steel mixes sludge with lime and to reduce oil quantity in the sludge below seven per cent.
Tata Steel in 2004-05 has also devised various ways and means to dispose of hazardous and bio-medical wastes. While hazardous wastes like tar sludge and BOD sludge have been entirely utilized in the coke making process, used oil has been used as a direct injection reducing agent in the blast furnaces since it cannot be recycled or reprocessed.
Salzgitter & ThyssenKrupp to raise flat steel prices from Oct 1
Salzgitter AG said it will raise prices for flat steel by 30 euro per tonne in the fourth quarter as orders increase and client inventory levels fall. ThyssenKrupp Stahl AG will raise its prices for carbon flat steel products by 20 30/t in the 4th quarter 2005.
The move follows Arcelor's decision last week to raise prices by 'several dozen euros' per tonne from Oct 1.
In recent weeks, the market has stabilized and stocks at Western European customers have increasingly returned to normal levels. In implementing the price increases, which are urgently required due to high raw material costs.
Baosteel increases production of value added steel
Baosteel has increased output of high value added products since early this year, with production of high-end steel such as X70 pipeline accounting for over 50% in its structure.
Baosteel is progressing toward international market with advanced and sophisticated resources by gradually getting rid of the tracks of low technology and low value-added walked along by domestic mills.
Siemens to supply drives for Angang's new hot rolling mill
The Siemens Industrial Solutions and Services (I&S) Group has been awarded the contract to supply the main drives and associated control technology for a new hot strip mill for the Anshan Iron & Steel Group Co in China. As part of a capacity expansion project, Angang is building an additional hot-rolling mill for a maximum strip width of 1430 mm.
The contract is worth around EUR 22 million. The drive equipment will be delivered, installed and commissioned in early 2007.
Siemens is to supply the main drives for the two roughing stands and the seven stand finishing mill. The cylindrical rotor synchronous motors with a total output of 81 megawatts are powered via Simovert D cyclo converters. Air-cooled cyclo converters require fewer power components and less mounting space for the same output power than other drive types.
The motors are manufactured by the Siemens AG Dynamowerk Berlin. The edging mill stands and the three down coilers are driven by synchronous motors operating with Simovert Master Drive low-voltage converters. The project also includes supervision of installation and commissioning of the drives.
Angang is one of the largest iron and steel producers in China. The company operates a production complex with an annual capacity of some ten million metric tons of pig iron and raw steel in the city of Anshan in Liaoning province. Angang's caters mainly to the automotive and shipbuilding segment and industries but also supply structural steel, rails and metal sheet to other segments
Acindar, Techint progressing with tube plant sale talks
Argentine long steelmaker Acindar is advancing with negotiations to sell a series of plants to Italian steelmaker Techint for US$83.2mn total. Acindar signed a letter of intent on the sales with Argentine companies Siderar and Siat, both Techint units. Siat would gain Acindar's steel tube plant in Villa Constituci, while Siderar would secure tube and cold-formed product plants in San Lu, Belgo
"This is an agreement with Siderar, a unit of the Techint group, for the eventual sale of the tube business, which depends on a decision from the antitrust regulator," Acindar spokesperson Gustavo Pittaluga told local press
Acindar, Argentina' largest long steel maker, reported net profit of 153mn pesos US$52.4mn in 1Q05, up 17% from US$45.1mn in 1Q04. The company exports 25% of its production, primarily to Bolivia, Brazil, Chile, Peru and the US.
Ural steel places order for modernization to SMS Demag
SMS Demag AG, Germany, has received from Ural Steel AG Uralskaya Stal, Novotroitsk, Russia, an order for the modernization of its electric steelmaking plant for long and flat products with the aim of increasing the annual capacity from 0.75 to 2.0 million tons of quality steel. Ural Steel is investing altogether around 300 million US Dollars for the modernization of the production units at the Novotroitsk location. The order comprises the modernization of the steel plant, of the continuous caster and of the downstream rolling mill. The commissioning will be completed in mid-2007.
Through this comprehensive investment program, Ural Steel wishes to move away completely from old methods of steel production and invest in production units which will enable more sophisticated steel grades to be manufactured, which will then be able to be further processed into high-quality products in the downstream rolling mills.
The first modernization stage was implemented already in 2004 with the commissioning of a continuous slab caster, built by SMS Demag, followed by the order for an electric arc furnace, including a process computer, at the beginning of 2005. The supply scope of the order awarded in July 2005 includes a 120-t electric arc furnace equipped with change-vessel technology, a dust collecting facility, modernization of the existing bin system and the engineering for the hot-metal charging equipment.
For the extension of the secondary metallurgy facilities, a new 120-t ladle furnace is to be supplied, along with a swiveling electrode-arm system, two stationary covers for two independent treatment positions, and the technological equipment.
The supply scope also includes the four-strand continuous bloom caster, which can optionally cast rectangular sections in the dimensions 330 x 470 mm or round sections in diameters between 430 and 600 mm. The continuous caster is equipped with hydraulic resonance oscillation and with only one type of stirring coil. This can be utilized for all section sizes cast.
SMS Demag will be supplying the complete electrical and automation systems, including Level 2, for the above mentioned core components.
70 % of Ural Steels output is concentrated on the Russian market and the firm produces high-quality tube and pipe grades for the natural-gas and oil industries, for bridge construction and for heavy mechanical engineering.
3 rescued from flooded coal mine in Guizhou
Three of the 13 miners trapped in a flooded coal mine in southwest China's Guizhou Province two days ago, were rescued Monday morning, local government sources said.
Rescuers also recovered the bodies of six trapped miners and are searching for the four others who remain missing, said the sources with the provincial administration of workplace safety supervision.
The accident took place in the Dahao Coal Mine, in Fengcheng Township of Tianzhu County, at about 1:40 p.m. Saturday, when 39 miners were working underground. Twenty-six miners managed to escape, but 13 others were trapped
Huta Krolewska puts up 48% shares for sale
The Huta Kociuszko steel mill has put a 48% stake worth roughly zł.37 million in the Huta Krewska mill up for grabs. Mittal Steel Poland already owns the remaining shares in the company.
"We submitted an offer," said Mr Andrzej Krzyształowski, a spokesman for MSP. MSP's plans to purchase the mill are surprising, bearing in mind the EU accession treaty stipulations and privatization agreement that MSP signed, according to which it must halve employment, which currently stands at more than 20,000 workers, by 2006.
Molybdenum continues to increase
The market price for molybdenum is about $32.50 per lb this month, which has been rising since first quarter 2004 average of $8 per lb. Some analysts see $40/lb molybdenum in the near future.
The U.S., Japan and China combined now chew up half of global supply. According to commodity analysts at Smith Barney Citigroup, this strong demand push has inflated the moly price significantly combined with a bottleneck in western world ore treatment and increased global demand for steel and super alloys, which translates directly into higher molybdenum consumption.
Molybdenum supply is flat, whether pure molybdenum or as a by-product of copper mining and highly consolidated with Chile, US and China combining to produce 75% of world output this year
Mittal Steel SA seen as real jewel in groups crown
Credit Suisse First Boston CSFB says the South African arm of the Mittal Steel group is among the best assets in the world number one steel makers portfolio. The South African plants are among three ultra-low-cost, high-quality assets, according to the investment banking groups initiation report on Mittal Steel last month.
The Newcastle plant in SA rates as the lowest-cost producer in the group at about $255 a ton of slab. The Vanderbijl- park plant is the third-cheapest producer at about $267 a ton. The global average slab cash cost is about $314 a ton. The South African operations are also considered good assets as they have a large amount of backward integration. Mittal Steel SA produces much of its raw materials and enjoys a favourable iron ore supply arrangement with Kumba Resources.
Within the Mittal Steel portfolio, we see some real jewels in the crown, says the report, naming South African and operations in Kazakhstan, Mexico, Algeria and Romania, among others.
In addition to its low-cost structures, Mittal Steel SA rates among the top assets in the group also because it has a share of about 72% of the domestic market. The global Mittal group has dominant domestic market shares in four other countries. These include Romania, Czech Republic, Poland and Kazakhstan.
The CSFB report is bullish about the global steel market. CSFB expects US steel prices to rise from the last quarter of the year, with prices in Europe increasing in the first quarter of next year. Prices in Asia would rise from the second quarter of next year, onwards, it says. With the upside risk of a full-blown steel market recovery into next year, we believe momentum within the sector should be strong through at least early next year, CSFB says.
Fortescue upgrades Pilbara ore resource
Fortescue Metals Group's shares climbed fifteen cents higher after announcing a nearly 20 per cent increase in the size of its flagship Christmas Creek iron ore deposit.
The Pilbara project hosts 1.4 billion tonnes of iron ore and Fortescue is now working towards increasing the confidence level in the estimation.
The amount of high-grade tonnes, which can be shipped without any beneficiation crushing and separating ore into valuable substances, increased to 465 million tonnes. The rest of the resource needs to be beneficiated, which reduces the levels of non-iron impurities concentrating the iron percentage levels.
The overall project, comprised of the Christmas Creek, Cloud Break and Mt Lewin deposits now has a combined resource of 2.3 billion tonnes.
Kuzbassrazrezugol coal production up 1.4% for January-August 2005
JSC Kuzbassrazrezugol produced 26.41 million tones of coal for the first eight months, up 1.4 percent from the same period a year ago (26.048 million tones).
In January-August it was produced 2.558 million tones of coal for coking, down 26.3 percent from an accounting period last year (3.473 million tones).
In August the Company produced 3.469 million tones of coal.
For the first half of 2005, Kuzbassrazrezugol increased the coal output by 1.1 percent up to 19.57 million tones from 19.35 million tones for the first half of 2004
Grupo Imsa changes its organizational structure
Grupo Imsa announces changes in its organizational structure, in order to optimize its value chain by increasing the leverage of existing synergies between its steel-related businesses, enhance the efficiency of its operations and reduce administrative expenses.
After the sale of the automotive battery business in 2004 and in order to align its operations and capitalize more effectively on operating and commercial synergies, Grupo Imsa's Board of Directors decided to consolidate its businesses into two core segments, instead of the current three. In the future, all businesses with activities related to the manufacturing and processing of steel will be part of IMSA ACERO, while businesses related to aluminum and plastic products will be part of IMSATEC, with IMSALUM disappearing as an independent business segment on being absorbed into IMSATEC.
Sandvik receives major orders in materials handling
Sandvik Mining and Construction, world leading supplier to the mining and construction industries, has achieved significant market successes recently through the receipt of a number of large orders for advanced materials handling systems. The total value of the orders is slightly more than SEK 1 billion. Deliveries will be made during 2006 and 2007.
The orders are for customized plants for handling of iron ore in Saudi Arabia and Brazil as well as coal in Australia.
Sandvik is a global industrial group with advanced products and world-leading positions in selected areas tools for metal cutting, machinery and tools for rock excavation, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems and sorting systems. Sandvik Mining and Construction is a business area within the Sandvik Group and a leading global supplier of machinery, cemented-carbide tools, service and technical solutions for the excavation of rock and minerals in the mining and construction industries.
Malaysia's steel industry cools down
Malaysia's steel industry is likely to slow down but achieve sustainable growth this year due to a downturn in the domestic construction sector and moderate growth in the manufacturing industry. Starting from 2005, the industry is likely to book an average 10% growth annually for the next six years. This is in stark contrast to the steel industry's heyday in the mid-1990s, when it chalked up 20-30% growth annually. Malaysian Iron and Steel Industries Federation (MISIF) deputy chairman Mr Datuk Lew Chin Hoi said steel consumption is expected to be weak this year. He expects consumption to improve marginally next year before picking up again from 2007-2009 in line with the implementation of infrastructure development under the 9th Malaysia Plan and industrial activities under the 3rd Industrial Master Plan.
Steel consumption in 2004 jumped 16% to 7.7 million tons from 6.6 million tons a year earlier. Both long and flat products grew by 15% and 18% respectively in 2004, Mr Lew said. "We do not expect 2005 to experience such a phenomenal growth as the market demand has slowed since the second quarter in view of the slowdown in the construction industry," he said.
Mr Lew said one of the major issues confronting the local steel industry is the government policy on imports of flat steel products. While other countries have removed their safeguard measures in 2003 and both steel prices and supply have moved to higher levels, Malaysia's import restrictions remained in place. This has caused some dislocations between the upstream and downstream sectors of the steel industry, apart from curtailing downstream activities, he added
Dust collector catches fire at Atlas Steel, Ohio
An explosion was reported at a steel plant in Twinsburg Sunday night.
An aluminum dust collector caught fire outside Atlas Steel as maintenance was being done on the piece of equipment.
Three people were taken to area hospitals. Two were treated and released, but one person suffered second- and third-degree burns.
A plant representative said that this type of fire can be tricky to deal with because you can't use water on aluminum. There is no word on the exact cause of the fire. Work will go on as scheduled Monday.
Atlas Steel Products is a producer of aluminized steel and a supplier of stainless steel. The Twinsburg-based company has six locations, most of them in the Midwest
Tentative agreement reached at Incos Thompson nickel plant
Inco and Local 6166 United Steelworkers have reached a tentative settlement in contract talks at Thompson. The two bargaining teams have been meeting since June to negotiate a new collective bargaining agreement replacing the current three-year deal that expires midnight September 15.
Both company and union have agreed to not publicly release details until presentations to the membership have been completed and vote results have been tabulated.
Inco Manitoba is a fully integrated nickel mining and processing operation producing more than 100 million pounds of nickel annually.
SA African Rainbow Minerals posts jump in profit
South Africa's biggest black owned mining group African Rainbow Minerals ARM posted a hefty rise in annual profit on Monday, on the back of growing output and strong prices for products such as iron ore and nickel. ARM said volumes for the coming year were expected to be around the same levels as previously and most prices should stay strong, except for steel alloys such as ferrochrome.
ARM said revenue rose by 41 percent to 5.5 billion rand and operating profit surged more than 200 percent to 1.6 billion rand.
ARM's ferrous operations, held through a 50.4% stake in Assmang, were star performers, especially manganese alloys whose sales volumes gained 22 percent to 1.8 million tonnes as prices peaked during the year. Assmang's iron ore sales grew 5.5 percent to 5.8 million tonnes while it produced 59,140 tonnes of nickel concentrate, up 4.1 percent, at an average nickel grade of 9.36 percent.
Chinas coal imports surge
China imported 16.7 million metric tons of coal in the first seven months of this year, up 54.7% on YOY basis, according to data released Monday by the General Administration of Customs.
In the first seven months of this year, China's coal import rose 55.4% on year to 14.95 million tons, while China's coal export in the same period fell 18.7% to 42.42 million tons.
AK Steel cuts forecast because of Katrina
AK Steel Holding Corp. said Monday that the rising costs of natural gas and scrap metal caused by Hurricane Katrina will turn a projected operating profit of $16.25 million into an estimated $33.5 million loss for the third quarter.
"While our shipment levels remain strong and spot market selling prices continue to rebound, we have experienced substantial cost increases for our steelmaking inputs, especially natural gas and scrap, due to the devastating effects of Hurricane Katrina," James L. Wainscott, president and chief executive, said in a statement.
The company said it is now expecting an operating loss of $20 per ton, with third-quarter shipments estimated at 1.675 million tons. AK Steel's earlier guidance projected an operating profit of some $10 per ton with estimated shipments of 1.625 million tons.
Equipment fails during US Steel Gary Works blast furnace rebuild
US Steel has reported today that the completion of the construction of the No. 14 blast furnace at Gary Works might get delayed due to some damage to the furnace during transportation of a large fabricated furnace section
Replacement construction equipment has been secured and is being moved to the site. The furnace shell will be inspected to determine the extent of any damage and potential delay in startup.
Philippines Sonic Steel faces raps over HDG line drawings
Criminal charges were filed yesterday at the Department of Justice against the owners and executives of Sonic Steel Corp. for alleged violation of Republic Act 8293 also known as the Intellectual Property Code of the Philippines.
The filing of the charges of counterfeiting and engaging in unfair competition came on the heels of simultaneous raids conducted last Tuesday by operatives of the National Bureau of Investigation Intellectual Property Rights Division on the Sonic factory in Trece Martires City, Cavite, and a warehouse of Taisan Commercial in Barangay Palasan, Valenzuela City, where some 10,000 pieces of suspected counterfeit Galvalume G.I. sheets were confiscated.
The NBI agents recovered propriety engineering blueprints believed stolen from complainant Steel Corporation of the Philippines as evidenced by the Steelcorp logo on the materials. The blueprints pertained to Steelcorps production line for aluminum zinc galvanized iron products, and suspected to have been used by Sonic to set up its own manufacturing facility, hence, the uncanny similarity between respective G.I. metal sheets.
Nickel forecasts continue to slide
Weak global demand and continued oversupply of stainless steel will continue to depress nickel prices, according to Smith Barney Citigroup analysts Mr Thomas Price and Mr Alan Heap based in Sydney, Australia. They forecast spot nickel on the London Metal Exchange (LME) falling from its eight-month average of $7.07/lb to $6.63 for the year
The Price and Heap outlook is only slightly different that the new downwardly revised $6.72 full-year price forecast by Jon Bergtheil at J.P. Morgan Securities in London. And none of these forecasters are worried about the impact of a possible strike later this week at Inco's operations in the province of Manitoba, Canada. Some Toronto analysts fret that the short-term price of nickel could rise if the United Steelworkers union strikes the world's second-largest nickel producer and its union after two months of contract talks.
Most analysts agree with National Bank Financial analyst Ian Howat, who
Last week, LME cash buyer nickel closed last week at $6.71. Analysts Price and Heap's long-term outlook is even bleaker, with prices set to average $5 next year and $4 in 2007.
Despite China's booming industry, global stainless steel growth is slowing, with first-half output this year up only 5.7% compared with 7.8% in all of 2004and further production cutbacks likely will mean negative growth in the second half. Price and Heap are among those analysts who believe increasing scrap metal availability and competitiveness are likely to eat into global demand for primary nickel.
Cline Mining appoints ThyssenKrupp executive to the board
The Board of Directors of Cline Mining Corporation has announced the appointment of Mr Hilmar Eller of Essen, Germany, to the Board of Directors of the Company. Mr. Eller is Managing Director of ThyssenKrupp MinEnergy GmbH and ThyssenKrupp RST Rohstoffe und Technik GmbH of Essen, Germany. ThyssenKrupp MinEnergy is a significant shareholder of Cline
Mr Eller replaces Mr. Allan Taylor who has resigned his Board position to facilitate the Company's compliance with the Corporate Governance Guidelines of the Toronto Stock Exchange, which recommends that the majority of directors be unrelated and independent. Mr Taylor is Chief Financial Officer and Secretary-Treasurer of the Company.
Mitsui Matsushima International Pty. Ltd, a subsidiary of Mitsui Matsushima Co. Ltd. Of Japan, is also a significant shareholder in Cline and is represented on the Board.
Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical coal in Canada for the international seaborne coal trade market.
Kumba & Adastra to take fresh look at Congo prospects
Iron ore producer Kumba Resources has renewed its joint venture with Canadian miner Adastra Minerals, taking it a step closer to a possible redevelopment of the Kipushi zinc and copper project in Democratic Republic of Congo. A reassessment of the mine's commercial viability in current market conditions and an appraisal of the mine's physical condition are due to be completed by November this year. The Kipushi mine is located in the south of the Congo, 30km southwest of Lubumbashi, adjacent to the Zambian border.
Kipushi has indicated resources of 16.9 million tons, with an average grade of 16.7% zinc and 2.2% copper. Zinc and copper were produced at the mine from 1925 to 1993, but production was stopped due to a lack of foreign exchange and operating supplies.
The original contract for the joint venture with Toronto-listed Adastra Minerals was signed five years ago. Under the joint venture, Kumba can earn a 50% shareholding in the Kipushi project, the company said. Adastra is developing several mineral assets in Central Africa, the Congo and Angola.
Kumba has interests in base metals, heavy minerals and coal, and is also planning to start an iron ore venture in Senegal as well as a heavy-minerals project in Madagascar. The company is majority owned by Anglo American, and is due to announce a major empowerment deal soon.
Mittal Steel SA appoints Executive Director Finance
Mittal Steel SA, formerly Iscor Limited, has announced appointment of Mr Harak Chand Banthia as Executive Director, Finance of Mittal Steel South Africa, effective from 7 September 2005
Mr Bhantia had joined Mittal Steel as CFO on August 10th. His previous assignments include CFO at Mittal Steel, Galati and Ispat Ireland
