September, 20 2005
India could emerge as iron ore powerhouse BHP
India can double its iron ore resources by handing over leases to large independent companies, according to BHP Billiton Ltd's Indian president Mr Don Carroll. India currently exports about 50 million tons of iron ore a year, mostly to Chinese steel mills, while the country's iron ore resources stand at 22 billion metric tons, well behind those top producers Brazil and Australia. A ban of foreign participation until 1991 and a fragmented local industry have held back exploration technology and operational efficiencies in the country.
Global mining heavyweight BHP Billiton Ltd./Plc. said on Monday India holds the potential to emerge as the world's third top supplier of iron ore to steel mills, but needs to repair its fractured industry. India already mines more ore than it consumes, meaning it is a net exporter of ore, which has turned golden for mining companies as steel makers scoop up hundreds of millions of tonnes of the raw material, mostly from Brazil and Australia.
India's net reserves of iron ore were rising as improvements in mining and steelmaking enabled miners to tap less rich ore, which bodes well for India's under-exploited deposits, mostly lying in the country's east, Don Carroll, country president, India, for BHP Billiton told a conference.
"We believe India could easily double its iron ore reserves," Carroll said.
"But India would benefit from a move away from some 120 small mining companies, each producing around two million tonnes per annum," Carroll said, in favor of a centralised and more coordinated industry.
At present, BHP Billiton mainly sells India coking coal, used in steel making, at a rate of about 7 million tonnes a year.
BlueScope looks at Indian coating mill
BlueScope Steel said a planned venture with Tata Steel might spend $250 million on a metallic coating plant in India. Talks with India's second-largest steel maker that began last December may be concluded either by the end of this year or in early 2006, said Mr Mike Courtnall, president of Asian building and manufacturing markets at BlueScope Steel in Melbourne.
India's economic expansion is fuelling construction and stoking demand for cars and domestic appliances, prompting its government to forecast steel demand will double in seven years. BlueScope said in December it would spend $100 million on three plants in India making pre-engineered buildings and related steel products.
The metallic coating plant will probably be located at Jameshdpur in eastern India, Mr Courtnall said. BlueScope earlier said the three plants would be part of the venture if an agreement were in place. Tata Steel and BlueScope Steel will split the venture, which calls for total investments of $350 million, Mr Courtnall said.
Tata Steel to invest in Australian mines
Tata Steel Ltd, India's second-biggest steel maker, is in talks to invest in and buy coking coal from two or three Australian mines as it seeks raw materials to feed expansion.
Tata Steel wants to import between 10 and 12 million tons of coking coal, and will buy stakes of between 5 and 25 per cent in mines, Mr AD Baijal, VP, raw materials, of Tata Steel informed. " We will need to import about 50 per cent of our requirements and we're looking at coking coal investments in Australia,'' Baijal said. He declined to say which companies Tata Steel is in talks with. The company already buys coal from AMCI Inc.
The price of coking coal more than doubled to a record $125 a ton from April 1 because of rising demand from Chinese steel makers, and as demand from other nations also increased. Prices may stay at records next year as steel demand remains strong,'' Tata Steel's Mr Baijal said.
Scramble to save Kudremukh plant before mining ban kicks in
With just a few months left before the Supreme Court order to stop all mining activity in Kudremukh, Karnataka, comes into effect, the ministry of steel has stepped up its efforts to prevent the closure of mining by the public sector Kudremukh Iron Ore Company Ltd KIOCL
A meeting of the parliamentary consultative committee of the ministry of steel has been called in Bangalore on September 21 to take stock of the situation and approve an action plan to prevent one of its profitable operations from grinding to a halt. Alternate plans have also been formulated by the steel ministry for discussion in the event KIOCLs petition for direction before the SC for continuation of mining activity is also rejected.
Sources said that the consultative committee would also be informed about KIOCLs alternate business plans to save over 2,000 jobs at the company. It is understood that the ministry is likely to ask the Karnataka and Orissa governments to quickly provide alternate mining areas on lease to the company. Also, KIOCLs proposal to form a joint venture with SAIL for mining in Orissa would also be hastened.
The SC in October 2002 ordered closure of all mining activity in Kudremukh on a petition filed by an NGO, Wild Life Organisation, with effect from December 31, 2005. In reponse, KIOCL filed a petition for direction before the apex court seeking permission continuation of mining. The matter is being heard by SC, which is soon expected to decided on the matter.
Subsequent to the 2002 SC order, KIOCLs production has fallen to 5 million tonne from 7 million tonne. KIOCL has also set up a pellet plant in Mangalore which would require 200 million tonne of iron ore for runing. After suspension of mining at Kudremukh the company is likely to use ore from other areas in Karnataka to feed the plant. KIOCL has also tied up with NMDC for supply of 1.2 mt of iron ore fines for pellet plant and 3.6 lakh tonne of lumps for Kudremukh Iron and steel Company.
Pakistan is more business-friendly than India
According to a World Bank-sponsored report, Pakistan ranks above India as a country to do business in. India comes 116th on the list, 25 slots lower than China and 56 positions behind Pakistan.
Indeed, the bureaucracy burdened, lumbering Indian elephant trails the field in South Asia coming behind the Maldives, Bangladesh, Sri Lanka and even Bhutan with the sole exception of war-torn Afghanis-tan, which is the only country in the region to be rated lower than India.
The rankings are based on criteria such as exim policies and property registration costs. India's bureaucratic maze requires entrepreneurs to submit 15 documents and obtain 27 signatures before they can import goods.
REL seeks coal linkage of 30 mt for two projects
Reliance Energy Limited REL has applied to the government for long term coal linkage of 24 million tonnes for its thermal power projects of 12,000 mw at Hirma in Orissa and 6 million tonnes for 1,000 mw at Akaltara in Chattisgarh for a period of 30 years
Both the projects are to be executed in the 11th plan. In the first phase, Reliance has decided to develop 4,000 mw capacity at Hirma, which it says will be taken up to 12,000 mw subsequently.
In addition to these two projects, REL has also informed the coal ministry of conducting detailed feasibility studies of some prospective sites in Maharashtra, Uttar Pradesh, Madhya Pradesh and Jharkhand for its future projects.
Shyam Steel announces expansion
Shyam Steel Industries has drawn up a Rs 550 crore expansion program which includes setting up new facilities in Jharkhand and Chhattisgarh as well as upgrading its fully integrated unit at Durgapur.
The company has earmarked Rs 450 crore for the new ventures and set aside Rs 100 crore for upgrading the Durgapur facility.
The company, which manufactures TMT bars and structural, is looking for suitable lands in Jharkhand and Chhattisgarh. Preliminary talks with Jharkhand and Chhattisgarh governments have been held and the company is approaching respective governments for mining leases.
It is also setting up a sponge-iron unit and a captive power plant at its Durgapur facility
SRMB plans structural unit
Kolkata based steel producer SRMB Udyog Ltd is setting up a plant for manufacturing structural steel at Durgapur by investing Rs 50 crore in two phases to make structural, for general purpose applications as well as for specific use in making transmission towers
The company which currently makes TMT bars at its plant in Paharpur near Kolkata, would implement the Durgapur project in three phases by investing Rs 50 crore for the first two phases to be commissioned by the middle of next year.
SRMB director kas said that that besides diversification into new areas of steel, the company is also looking at doubling the capacity of TMT bars.
Tata Steel signs wage deal with RCMS
A wage agreement between Rashtriya Colliery Mazdoor Sangh (RCMS) and Tata Steel was signed in Jamshedpur yesterday.
The Settlement is first-of-its-kind in the history of Tata Steel collieries as earlier the settlements were done under the National Coal Wage Agreement umbrella.
The wage revision was finalised on the basis of business imperatives and mutual benefit.
The welfare measures introduced by Tata Steel, some ahead of time, had resulted in the company's steel works enjoying over 75 years of industrial harmony
EU flat product steel price rises are not a certainty: MEPS
In times of weakening steel prices, producers sometimes announce plans to raise their selling values simply with the aim of stabilising the market, and with only faint hopes of actually reversing the downward trend. Certainly, they do not always achieve the full published price increase from day one.
The first to move in the latest round of attempted strip product price hikes was US Steel Europe. It announced a 40 per tonne price increase on coated and uncoated products from its Slovakian and Serbian works to come into effect on August 16 a day when we suspect more of its customers were on the beach than in the office. Nevertheless, the company is backing up its price rise effort with further production cuts at its Kosice works.
German mills, ThyssenKrupp and Salzgitter, are proposing fourth quarter increases on strip products amounting to 20/30 per tonne. Arcelor is hinting at 10/50 per tonne. Other mills are likely to follow these moves. Finland's Rautaruukki has said it will lift prices in the final trimester but has given no details. Mittal Steel's strip product works also expect to try for a fourth quarter increase of perhaps 20 per tonne. Corus is raising prices on structural sections, but has not yet determined whether to go for an advance on strip products too. Some Italian coil producers and re-rollers are also indicating they will attempt price improvements soon.
Producers have restrained their output and import tonnages have fallen in recent months. We estimate that EU25 inventories of flat products rose by at least 6 million tonnes, year on year, in the twelve month period to June 2005. Since then, 1.5 million tonnes may have been taken out of the system but this still leaves a large excess. Evidence from buyers also suggests there is still a lot of steel in many customers' factories and warehouses. Moreover, mill stocks have not yet been totally eliminated.
Some factors are moving in the steelmakers' favour. Import pressure has been significantly reduced, with fewer low-priced offers from countries such as China, India and Iran. There are small signs of a rise in underlying steel consumption. But the producers are feeling the full impact of increased costs for inputs such as iron ore, coal, scrap and energy. This makes them anxious to secure counterbalancing price hikes from their customers.
However, many stockholders and other market players say price escalations of the scale mills are seeking have yet to find general acceptance. Some buyers do see room for price rises from October, but only perhaps 5/10 per tonne. It may be only those purchasing managers needing urgent supplies who are prepared to pay more. Those who can wait may hold off putting more pressure on the mills to relax their current stance.
If prices do start moving up again in the final quarter, it would be one of the shortest cyclical downturns on record. The European steel market left behind the five-year and four-year cycles in the 1990's. The normal span from peak-to-peak has reduced to 2 or 2 years.
In the current cycle, flat product prices in most European countries started to fall in March or April. It would therefore be very unusual for them to begin rebounding as early as October. This would indicate a downward leg of the cycle lasting only some 5/6 months, and it would be quite a dramatic development if the trough really has been reached already.
ThyssenKrupp followed up its period four price rise with a comment that a further increase is under consideration for the first quarter 2006. It seems much more probable that the mills would succeed in securing the higher prices in January than in October.
Battle for Erdemir List of contenders
All eyes are turned to Erdemir, Turkeys biggest state-run iron and steel industry, with the deadline for final offers for the sale of 46.12 percent of public shares, only 7 days away and with this news Erdemir shares made an 18 percent profit in a week and the entire companys market value rose to $3.459 million, increasing by $546 million
The Privatization Administration circles saying the contenders are afraid of the increase in Erdemirs value and are reviewing their financial structures.
A total of 13 firms composed of eight local and five foreign firms that qualified to join the Erdemir tender will announce their consortiums to the Privatization Administration by September 23.
1. Arcelor (Luxembourg)
2. Azovstal-Metinvest Joint Entrepreneurship Group (Ukraine)
3. Corus Group (Britain)
4. Mittal Steel (Netherlands)
5. Posco (South Korea)
6. Severstal (Russian Federation)
7. NLMK (Russian Federation)
8. LebGoK-Oskol Joint Entrepreneurship Group (Russian Federation)
9. Eregli Joint Entrepreneurship Group [Composed of local firms under the leadership of the Turkish Union of Chambers and Stock Exchanges (TOBB)]
10. Koc Holding (Turkey)
11. Nurol-Limak-Ozaltın-Alcohol Marketing Joint Entrepreneurship Group (Turkey)
12. Oyak (Turkey)
13. Zorlu Holding (Turkey)
China's 2006 iron ore imports to slow to 170-180 mln tons
China's iron ore imports are expected to slow to 170-180 mln tons next year, said Dong Tao, a senior official with the Central Iron & Steel Research Institute, according to the Economic Observer. Figures from the General Administration of Customs show China imported a total of 180 mln tons of iron ore in the first eight months this year alone, up 32.9 pct from a year earlier.
Dong said next year's iron ore imports will not increase significantly as domestic supply has been rising. Dong said China's domestic iron ore output rose 25 pct year-on-year in the first half this year.
According to the newspaper, the expected reduction in iron ore imports next year is also a result of government macroeconomic tightening policies in the steel sector. The Ministry of Commerce (MoC) said last month that China's 2005 iron ore import growth was expected to slow substantially, as steel production growth decelerates as a result of central government policies.
The country's 2005 full-year iron ore imports were expected to rise about 15 pct to 240 mln tons, compared with a growth rate of 40.5 pct recorded last year, the MoC said.
China is the world's largest iron ore importer. The country imported 208 mln tons of iron ore last year, accounting for one third of global shipments.
Chinese economy to slow down to 9.0 pct in 2005
China's economic growth is expected to witness a very slight slowdown to 9.0 percent in 2005 and rebound to 9.2 percent next year, the OECD said in a new report Friday. The slowdown is the result of further weakening of investment owing to continued administrative control in targeted industries and completion of projects that started before the tightening, the Organization for Economic Cooperation and Development (OECD) said in its first "Economic Survey of China."
"Private consumption will likely remain robust, and external demand is also likely to be strong, " says the report. "Imports, on the other hand, are expected to slacken."
The report projects that inflation in China will climb to 4.0 percent this year and remain the same growth rate in 2006.
Coal prices to drop in 2006 as coal majors expand
Prices for thermal coal, the second- biggest energy source used in power plants after oil, will decline from a record in 2006 as producers such as BHP Billiton, Anglo American Plc and Xstrata Plc expand production.
Supply contracts will average $49.50 a metric ton in 2006, according to the median forecast of six analysts surveyed by Bloomberg, compared with a record $53 a ton in 2005. Production will exceed demand in 2006 as nations such as Indonesia and Colombia expand supply, McCloskey Group, which publishes coal market data, said in a report today.
Spot prices have dropped 3 percent this year.
Coal output will grow 2.3 percent to 4.7 billion metric tons, JPMorgan Chase & Co. estimated in a Sept. 7 report from London. Australia and Indonesia, the world two biggest coal exporters, are among nations that will expand their production in 2006, the bank said.
Arcelor abandons sale of Ugitech
Arcelor said it has abandoned an attempt to sell its long stainless steel unit, Ugitech, after the bids it received were too low. 'We have found that the offers were not sufficient, so Ugitech is going to remain within Arcelor to pursue its plan to improve its results,' a spokesman said.
He said measures taken before the attempt to sell Ugitech have already 'notably' improved its results. 'This year it will have larger volumes sold than in 2004, its EBITDA in 2005 will also be superior to 2004, and this results improvement is due mainly to price increases in the first half,' he added.
The spokesman declined to comment on the potential impact of retaining Ugitech on Arcelor's own results. He said that while the trend is positive, the contribution of stainless steel to Arcelor's overall results 'have always been modest at best'. He did not identify how many bids were received for Ugitech, or the identities of the bidders.
Ugitech is the European market leader in long stainless steel, which involves products such as steel cable
Sumitomo wins LNG steel pipe order in Qatar
Sumitomo Corp, Japan's third-largest general trading company, has received an order to supply 100,000 tons of steel pipe to a liquefied natural gas LNG project in Qatar worth 11.2 bln yen between February and September of 2006
The order from United Arab Emirates' National Petroleum Construction Co and major French engineering firm Technip is the third-largest pipeline pipe order for the trading company.
Sumitomo plans to fill the order by acquiring the pipe from Sumitomo Metal Industries Ltd
POSCO looks to increase Ferrite stainless steel production ratio
POSCO is looking to increase its ferrite stainless steel production ratio up to 35 percent.
According to a senior researcher of POSCO, Mr. Young-Hwan Kim, Posco is planning to do so before 2008. Due to the fluctuating nickel price, end-users of stainless steel tend to use ferrite instead of austenite as much as possible. This has prompted Posco to expand the production of ferrite stainless steel.
The company currently produces about 2 million tons. Posco is planning to increase that to 3 million tons by 2008. They will also put a new cold rolling mill into production.
Oceaneering to supply tube for Newfield project
A division of Oceaneering International Inc. has secured a $13 million contract from Newfield Exploration Co. to supply steel tube umbilical for Newfield's Gulf of Mexico Wrigley field development. The 28-mile umbilical will be manufactured at Oceaneering Multiflex's new Panama City, Fla., umbilical manufacturing plant. Delivery is scheduled for the second quarter of 2006.
"This contract with Newfield is a great beginning to what we anticipate will be several more steel tube umbilical awards in the near future for our Panama City plant," said Mr John Huff, Chairman and CEO of Oceaneering.
With subsea completion activity worldwide, and notably in the Gulf of Mexico, expected to remain at historically high levels over the next several years, Houston-based Oceaneering expects the financial performance of its new Panama City facility to "increase substantially next year and be a major contributor to a growth in Oceaneering's earnings," Huff said.
Sonic Steel challenged to explain blueprint of galvanizing line
Steel Corporation of the Philippines dared yesterday Sonic Steel Industries to issue a public statement explaining how it got hold of engineering blueprints of a state of the art galvanized iron production facility bearing Steelcorp logo. Steelcorp lawyer Nonnatus Chua raised the challenge following Sonics claim in paid advertisements that it did not steal the blueprints. The ad was silent, however, on how it came to possess the blueprints.
Armed with a search warrant issued by the court, two teams of NBI agents simultaneously swooped down on the Sonic Steel Plant in Trece Martires City, Cavite and on a warehouse of Taisan Commercial in Valenzuela City where some 10,000 sheets of suspected unfairly competing Superlume aluminum-zinc G.I. sheets were confiscated.
The lawyer expressed surprise how Sonic Steel could tell the public that they were back in business when in fact, the NBI agents took some 40 vital parts of its production facility without which the machines cannot run.
Steelcorp has filed charges of unfair competition against Sonic Steel before the Department of Justices Task Force on Intellectual Property Rights
Steel Structural Systems names new president, adds equipment
Steel Structural Systems has promoted Mr Mike Gallo to president and chief operating officer of the company, who had joined the company in March as executive vice president and chief operating officer.
In addition, the company is installing new equipment that will produce high-volume light metal studs, commonly referred to as drywall studs.
Investment in the equipment, called a roll-forming line, broadens Steel Structural Systems' current structural stud capabilities in the light gauge metal framing industry.
Steel Structural Systems produces roll-formed steel framing components and light-gauge metal construction materials.
OneSteel bill enters parliament
An amendment to the OneSteel Whyalla Steelworks Indenture Act has ensured security for OneSteel's future, but others believe it would reduce OneSteel's obligation to control dust emissions. The amendment provides OneSteel a new 10-year EPA license under which it will operate
Whyalla Red Dust Action Group Inc spokesperson Ted Kittel said the group were appalled. "It overrides the EPA (Environmental Protection Agency) as a regulator and places control in the hands of the Mining Minister. "We consider this to be appalling as it denies the EPA to impose any additional new conditions and allows the minister to revoke any environmental conditions previously issued by the EPA."
OneSteels Communications manager Anya Hart said the Environmental Protection Agency would still regulate OneSteel's environmental licensing conditions, with the relevant State Minister required to approve changes to these conditions rather than the EPA as is currently in place.
OneSteel has challenged licence conditions set by National Environment Protection Measures in a court hearing, as the environmental conditions set were stricter than those of other State industry sites and measured unfairly
He said Project Magnet would significantly reduce dust emissions. The project would have the crushing plant go from a dry to wet process, reducing dust amounts. A further $60 million would be spent on further dust reduction with the introduction of large iron ore sheds and higher sided wagons for its transportation.
Australia riding a coal boom
Australia has jumped off the sheep's back and climbed aboard the coal loader, as it is to enjoy a $7 billion surge in coal export earnings. The latest forecast from the Australian Bureau of Agricultural and Resource Economics predicts exports of coking coal will soar 64 per cent this year to hit $17.6 billion.
Thermal coal exports are tipped to rise 10 per cent to more than $7 billion, leaving total coal exports at $24.6 billion worth double the value of the next most important export, iron ore.
Cleveland Cliffs North Americas pellet giant
Cleveland-Cliffs, the biggest producer of iron ore pellets in North America, began acquiring majority interests in mines of its ailing partners and converting those companies into customers when the steel industry slumped a few years ago. Today, it operates six mines in Michigan, Minnesota and Canada that account for 45% of North America's iron-ore capacity.
After losing money in 2001, 2002 and 2003, Cliffs, benefiting from rising iron ore prices, saw profits climb and analysts expect good earnings in 2005
Meanwhile, Cliffs is expanding beyond North America to tap into fast-growing developing nations. Its recent acquisition of 80% of Australian ore-miner Portman Ltd., for about $450 million, should improve access to China and to other Asian markets.
BHP Billiton buys emission credits in bid to boost coal sales
BHP Billiton, the world's biggest mining company, is buying emission credits linked to European coal sales contracts to boost the appeal of the fuel as regulators try to halt greenhouse gas production. BHP has been buying emission certificates from projects that cut greenhouse gas output in developing nations, as well as European Union carbon allowances to staple with coal sales imported into Europe
Coal emits more than twice as much carbon dioxide as natural gas for each unit of power produced. Utilities that burn coal need more emission allowances. Power plants and factories in the 25 EU countries must from this year have an allowance for each ton of carbon dioxide they emit. Companies that emit more need to buy allowances in the market, while those that emit less can sell their surplus.
Certified emission reductions, which are known as CERs and require approvals from a United Nations board and other regulators are created under the Kyoto Protocol, an international agreement to cut greenhouse gases, when poor nations build energy projects such wind farms and power units that burn manure.
The price of EU emission allowances has more than tripled during the past nine months. That's spurred European companies to seek certified emission reductions from projects in developing nations, allowing them to cut their cost of compliance with EU limits at home.
Wuhan Steels low coating tin plate passed provincial checkup
Wuhan Steelworks Groups product of developing the low coating tin plate has passed the provincial checkup, which means the research has made new progress.
Tin plate is used for canning food and drink and the traditional products had a thick layer of tin. In order to reduce the using quantity of the tin and the cost, Wuhan Steelworks succeeds in developing this new product.
The experts all agree that this low tin plate LTS made by Wuhan Steelworks saves the Tin resources, and the tinning of the products for testing are qualified 100% as all important parameters are equivalent to normal standards
Mr Wilbur Ross Jr shows interest in Delphi
Takeover & restructuring tycoon Mr Ross, who has planned to create the world's largest auto supply company by acquisition route, is reportedly interested in taking over one of the biggest auto component suppliers Delphi Corp
A Detroit newspaper has reported that Ross would be interested in buying Delphi Corp. if the auto supplier is put up for sale or files for bankruptcy, something the company said it might do, possibly this month or in early October.
Sydney tar ponds panel appointed
The federal and Nova Scotia governments have appointed a three member panel that will review the plan to clean up the toxic tar ponds and coke ovens in Sydney and N.S. areas and submit a report by June 2006. The panel will review a proposal from the Sydney Tar Ponds Agency for the remediation of the ponds and coke ovens site.
According to a federal report, industrial byproducts of coke production included coal tar, ammonia, sulphur, light hydrocarbons (benzene, xylene, toluene), and polycyclic aromatic hydrocarbons (PAHs). Initially those products were recovered and recycled, but later on, they were stored unsecured at the plant, dumped onto the soil or into waterways.
"As a result of these activities, contaminants contained in the raw materials and wastes are now present in the soils and groundwater of the Coke Ovens site, and in the waters and sediments of the Tar Ponds, Coke Ovens Brook,
Muggah Creek and Sydney Harbour," the report says.
Sydney residents have complained of health problems linked to the pollution.
Viet Nam's iron ore deposits estimated at 1.2 billion tonnes
According to the Viet Nam Steel Association, the country has discovered 216 iron ore mines and deposits with an estimated combined volume of 1.2 billion tonnes.
VSA also reported that only 13 iron ore mines have deposits of over 1 million tonnes each. The biggest mines are Thach Khe in central Ha Tinh province with a deposit of more than 544 million tonnes, and Quy Xa in northern Lao Cai province with an estimated deposit of 112 million tonnes.
Due to a capital shortage, the local industry was able to build only one production chain to produce steel ingot from iron ores. Most of Viet Nam's iron ore, therefore, has been sold abroad.
Government sues US Steel over pollution at Granite City facility
A court has ordered that US Steel makes all technical repairs necessary to bring its Granite City Works into compliance with state environmental laws and regulations. In addition, the suit seeks a civil penalty of $50,000 for each violation and an additional $10,000 per day the violations continue in a suit filed by Illinois Attorney General Lisa Madigan in Madison County claiming the US Steel Granite City Works facility had violated the Illinois Environmental Protection Act. According to the lawsuit, the Illinois Environmental Protection Agency reviewed the plant's operations in August 2003 and found numerous shortcomings.
US Steel official said all but one of several emissions and pollution problems cited in a lawsuit filed by the Illinois Attorney General's Office last week have been dealt with. Mr Armstrong said U.S. Steel will be negotiating with Madigan's office on dealing with the remaining issues
Bonus time at BHP Billiton
In line with the record profits, BHPs remuneration committee has decided to shower all performers with huge increase in bonus for year ending June. CEO Mr CW Goodyear has collected $US4.9 million compared with $US4.1 million in 2003-04 comprising of various components including a base salary, bonuses and retirement benefits etc
Running a close second to Mr Goodyear is Mr Miklos Salamon, a Billiton operative, who has the chairman's guernsey at WMC Resources with $US4.7 million up from $US3.6 million
Other BHP heavies' salaries include energy man Mr Philip Aiken $US4 million, legal man Mr John Fast $US2.4 million, carbon steel materials man Mr Robert Kirkby $US2.8 million, commercial officer Mr Marius Kloppers $US3.1 million and numbers man Mr Christopher Lynch $US2.7 million.
It is understood that the performance is judged based on key indicators such as business excellence, corporate strategic issues, senior executive succession planning, business growth and project performance.
US Manufacturers cautious about next 3 months
Metal-product manufacturers are expressing little optimism about business conditions for the next three months, according to a new survey from the Precision Metalforming Association.
"I don't think we are facing something like a steel shortage, but there's a wait-and-see attitude" concerning metal prices and the availability of materials, said Bill Gaskin, president of the trade group, which has Wisconsin companies in its membership.
Some of the negative outlook could be attributed to worries about how Hurricane Katrina might affect the U.S. economy. Manufacturers have reported slower sales while, at the same time, they are paying more for raw materials and energy.
It's one of the most pessimistic outlooks from metal-forming companies in the past two years, according to the Cleveland association, which has 1,200 companies in its membership. Forty-three percent of the surveyed companies expect an increase in orders between now and December, but that's down from 53% in August. Thirty-nine percent predict no change in orders, while 20% expect a decrease.
force on short time or layoff dropped for the second consecutive month.
Rio tight-lipped on Bolivian iron ore
Major diversified miner Rio Tinto Ltd was tight-lipped on talk that it was interested in the $US300 million El Mutun iron ore deposit in Bolivia now up for auction. A Rio Tinto spokesman said he could neither confirm or deny the company's interest in the iron ore deposit.
The deposit, located close to the Brazilian border, has proven reserves of 175 tonnes grading 67 per cent iron content and an estimated reserve of 40 billion tonnes of primary ore, according to a US geological survey.
Rio Tinto is one of the largest iron ore miners in the world and has operations in Western Australia that last year produced 108 million tonnes.
The world's largest iron ore miner, Brazil's Companhia Vale deo Rio Doce, is also believed to be interested in the project
Heron iron ore to merge with Echelon
Nickel explorer Heron Resources will merge its iron ore interests into another junior explorer, Echelon Resources.
Heron said it had been assembling an iron ore package for six years as part of a stainless steel strategy but since decided its nickel projects were not suited to stainless steel production.
Heron will receive 25 million shares in Echelon and 10 million performance options. Echelon is seeking $3 million via the issue of 11.2 million shares at 27 cents each to fund exploration of the assets over the next two years
Mining, scrap & inventories cannot meet nickel demand
Inco President and COO Mr Peter Jones told the Merrill Lynch 11th Annual Mining Conference that, despite some substitution, the demand for nickel remains healthy, particularly in China, where it rose 50% during the first half of this year. He added that primary nickel production, secondary stainless steel scrap, and nickel inventories are all unable to satisfy the underlying demand.
During the first quarter of this year, China surpassed the US as the world's largest nickel consumer, accounting for 16% of demand. Jones said China "lacks domestic nickel resources and processing capability" with domestic nickel production only meeting 50% of Chinese demand.
The good news is that Inco's massive Voisey Bay project in Labrador has just produced its first concentrate this past week, six months ahead of schedule. Production at Voisey's Bay will continue to ramp up during the next few months with 110 million pounds of nickel in concentrate expected to be produced next year.
China has embarked on the stainless steel consumption growth path taken by Japan, Taiwan and Korea, Jones explained. China's domestic stainless capacity should increase by 6 million tonnes in the next five years and account for more than 70% of the world's stainless steel growth, according to Jones.
Buchanan mine idled after hoist problem
CONSOL Energy Inc. has idled the Buchanan Mine, near Mavisdale, Virginia, following a problem with the mine's skip hoist mechanism that caused a loaded skip and an unloaded skip to fall to the bottom of the mine shaft. No one was injured during the incident and, with the exception of the hoist shaft, all other areas of the mine were unaffected by the incident.
The skip hoist is the mechanism used at the Buchanan Mine to lift coal vertically from the bottom of the mineshaft to the surface. Two counter- balanced buckets, called skips, move up and down in opposite direction from one another, alternately loading and unloading coal. The skips at the Buchanan Mine hold approximately 24 tons of coal. If the skip hoist is inoperable, coal production operations have to be suspended.
The problem occurred Friday evening, September 16, 2005, when the braking mechanism on the hoist apparently failed to hold a loaded skip at the surface before it could dump its load. The loaded skip fell approximately 1,600 feet back through the shaft to the bottom. Simultaneously, the empty skip was propelled upward to the surface as the loaded skip fell, causing the empty skip to strike the top of the hoist mechanism before also falling back to the shaft bottom.
Crews are now attempting to assess the damage to the skips, hoist ropes and the steel hoisting structure housed within the concrete shaft. The assessment is expected to take several days. Once the assessment has been completed, the company expects to provide an estimate of time necessary to repair the damage and to resume production. It is expected that repairs will take at least several weeks. While repairs are being made, it is anticipated that approximately 200 mine employees will be laid off.
The Buchanan Mine produces approximately 350,000 to 400,000 tons per month of low-volatile, metallurgical-grade coal that is sold to domestic and international steelmakers who use the coal to make coke. The company expects to send letters to Buchanan customers invoking the force majeure provision of the sales contracts during the period when the mine is idle.
CONSOL Energy Inc., through its subsidiaries, is the largest producer of high-Btu bituminous coal in the United States. CONSOL Energy has 17 bituminous coal mining complexes in six states. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane, CNX Gas Corporation. CONSOL Energy Inc. has annual revenues of $2.8 billion. The company was named one of America's most admired companies in 2005 by Fortune magazine.
Slovenian Steel Group increases revenues and profits
The Slovenian Steel Group generated revenues to the amount of EUR 249.47m in the first six months of 2005, a 33.5% increase year-on-year. The net profit in the same period rocketed from SIT EUR 0.96m to EUR 16.61m.
The group's output was 226,715 tonnes of steel in the January-to-June 2005 period, a 4.1% increase over the same period in 2004, the company said in a press release on Tuesday, 13 September.
The group plans to generate sales revenues to the amount of EUR 509.22m by the end of the year, 22% over the total sales revenues in 2004, while its profit is expected to increase three fold.
The group attributed the outstanding business results to favourable economic conditions, aggressive marketing and a thorough streamlining in all business areas.
Xingtai Iron & Steel sets up auto parts JV with Germany's Keller
Xingtai Iron & Steel Co Ltd, one of China's key steelmakers, said it has set up an auto parts joint venture with Germany's A & E Keller GmbH & Co KG.
The Chinese steelmaker said that the venture started operations in Beijing earlier this month with two advanced cold-forged auto parts production lines from Germany.
According to a Wen Wei Po story yesterday, the venture, which has total investment of 100 mln yuan, will supply cold-forged parts for luxury cars from Mercedez Benz, BMW and General Motors
