September, 28 2005
Ispat Industries plans Rs 1,100 crore CAPEX
Chairman of Ispat Industries Ltd Mr PK Mittal has told press on the sidelines of its AGM, that the company plans to invest Rs 1,100 crore during the current fiscal to fund the expansion of its Dolvi plant and new projects in India and out of which Rs 630 crore investment is already in different stages of implementation
Some of the projects in the pipeline are a sinter plant of two million tonne annual capacity, an oxygen plant with a capacity of 1260 tonne per day, an electric arc furnace and a gas cleaning plant.
These investments would help the company to reduce the costs of the products and make the products more competitive.
Rs 5,000 crore coal production plan takes off
The much hyped Rs 5,000-crore emergency coal production plan of the ministry of coal will finally get off the ground, with government planning to start work on it from the next fiscal. According to sources, the coal ministry would soon approach the Public Investment Board PIB for clearance of additional Rs 2,500 crore investment required to complete the project that envisages additional coal production of 71.3 million tonne.
Under the emergency coal production plan, government intends to make a total investment of over Rs 5,000 crore to increase non-coking coal production from existing 16 mines of four Coal India Ltd (CIL) companies - Northern Coalfields Ltd (NCL), South Eastern Coalfields Ltd (SECL), North Eastern Coalfields Ltd (NECL) and Central Coalfields Ltd (CCL).
The ministry has already secured clearance for Rs 2,500 investment and now hopes to get the nod for balance investment of Rs 2,500 crore.
Sources said that as there is an urgent need to step up coal production in the country, the plan would aim to reach additional 71 mt coal production by 2011-12. This would leave a 10-11 mt coal surplus against a shortfall of about 60 mt tonne (by 2011-12) estimated by the Planning Commission.
Global Steel subsidiaries balance sheets to be merged
Global Steel Holdings Ltd aims to consolidate the balance sheets of all its eight subsidiaries across six countries including Ispat Industries Ltd over the next six to nine months. Global Steel at present controls a steelmaking capacity of around 14 MT across plants in India, the Philippines, Nigeria, Bosnia, Libya and Bulgaria.
Ispat Industries is the largest subsidiary of GSHL in terms of revenue, with around 54% direct and indirect holding.
Mr PK Mittal, chairman of Ispat Industries Limited, during Ispats 20th AGM said that this would help the privately held GSHL to have a single account to reflect the revenue earnings of all its subsidiaries and the consolidation of GSHLs balance sheet will create the asset base and provide the critical mass which would help further acquisitions
Mr Mittal declined to comment on the list of promoters of GSHL or the total asset base but industry sources estimated the asset base of the company at $7-8 billion.
Rs 15,000 crore Dankuni Township Project starts next year
The work for the Rs 15,000 crore Dankuni Township Project, about 25 km from Kolkata in neighboring Hooghly district on 5010 acres land, will start next year after overcoming the industrial and land acquisition problems.
About 16 major construction and real estate giants from all over India and abroad, including the well known Salem Group of Indonesia, had showed interest in participating in the project, jointly with the state government.
A separate "green belt" of about one km wide would be built around the proposed township to neutralize the polluting effect of the surrounding about 300 highly labor intensive sponge iron, iron and steel making industries under small and medium sector.
I-T raids on steel traders in Nagpur
The Income Tax sleuths today conducted searches and surveys on steel traders and re-rolling mill owners in the city, I-T sources said. Twenty-six searches and six surveys were conducted at the office and factory premises in mostly eastern part of city where these factories and re-rolling mills are located, a top official said. "The searches commenced in the morning and may continue till tomorrow since a lot of exercise is needed to extract details from them," the official said.
Over 150 income tax sleuths, conducting the searches, have also sealed 15 bank lockers owned by these steel traders and dealers. After sealing these lockers, the I-T team was trying to ascertain their contents, he said.
The department has requisitioned the services of their staff from outside Nagpur also, including from Nasik, for the purpose. These steel traders, dealers and manufacturers are allegedly involved in sale/purchase of unaccounted transaction and re-rolling of scrap materials, the sources said.
Steel Oversupply Exacerbated in China
Mr Wu Xichun, former president of the China Iron and Steel Association, while attending a seminar on China's rolled steel market in Shanghai said that oversupply of steel products has worsened in China's domestic market in the past two months. He said the problem was not caused by insufficient demand, but by increase of net import and domestic supply.
Meanwhile, Mr Wu Xichun noted the steel price drop in international and domestic markets since this April was natural, and the competitions and merger among domestic steel firms will serve as an indicator of the country's steel market performance in the latter part of this year.
He said the worsening steel oversupply in July and August has led to price falls in August and September and if China's steel output decreases in the next few months, the steel market will be stabilized. He also called for import reduction and output limitation in the steel sector.
The China Securities Journal reports since July and August this year, China has turned from a steel net exporter into a steel net importer. It adds growth rate of iron and steel output during the period, however, is much faster than that of demand. In the first eight months, China's pig iron output surged 31.87 percent, and rolled steel output, 26.22 percent
Battle for Erdemir - 6 offers submitted
Six companies / consortiums have submitted their offers for the privatization of Turkish steel mill Erdemir, by the deadline of 16:00 hours on 26th September
The list of final contenders is as under
1. Arcelor
2. Mittal Steel
3. Severstal & Nurol-Limak-Ozaltin Alcohol Marketing combines
4. NLMK
5. Eregli Joint Enterprise Group
6. Oyak
Eregli Joint Enterprise includes Kibar Holding, Yildirim Foreign Trade, Borusan Holding, Toscelik, Icdas, Tezcan Galvanizli Yapi, Turkon Holding, Diler Holding, TOBB, Ankara Chamber of Commerce, Bursa Chamber of Commerce and Industry
POSCO, Corus, LebGoK-Oskol Joint Initiative Group of Russia, Azovstal-Metinvest Joint Initiative Group of Ukraine, Koc Holding AS and Zorlu Holding AS of Turkey, who had obtained a preliminary authorization, did not submit a bid and withdrew out of race
The bidding is expected to be held during the first week of October
World steel prices beginning to diverge
In todays global market one expects little price divergence in steel prices in different corners of the world. Industry researcher MEPS reports a current reversal of this trend which the analysts believe is likely a result of inflated ocean freight rates, which is up by 75% since August
As a result of the divergence, MEPS is forecasting a surge of steel product imports into the US.
MEPS analysis shows that strip product prices in Europe are basically flat, while they are rising in North America and falling in Asia. Last month's values in these three regions were within about US$10 of each other. This month there is a range of almost US$100 per tonne between the lowest in Asia and the highest in North America.
Looking at average transaction prices for hot rolled coil, September values in the EU stand at just below US$500 per tonne, only a few dollars different from last months figure. EU prices have lost more than US$200 per tonne over the course of this year and continue to languish, pending a correction of the stock surplus, MEPS reports.
In Asia, the average hot rolled coil price this month is around US$480 per tonne, down by almost US$20 per tonne month-on-month and more than US$100 per tonne since the peak earlier this year. The price has been depressed by the continued build-up of additional production capacity in China, over-stocking and increasing Chinese exports, the researcher believes.
However, in North America, the September hot rolled coil price jumped by almost US$70 to US$580 per tonne. MEPS suggest this is partly because of increased raw material surcharges related to higher scrap prices. There are also signs of higher demand, as orders are being quickly placed for steel needed for reconstruction work post-hurricanes.
Raw material surcharges also look like increasing again in October because North American scrap costs have strengthened further. This, says MEPS, is partly because of disruption to supplies of scrap and other raw materials caused by the hurricanes.
Masteel inks billet export deal to Vietnam & Philippines with Daewoo
Malaysia Steel Works KL Bhd Masteel has secured a one year contract to export RM80 million worth of steel billets to downstream steel mills in Vietnam and the Philippines. The company yesterday signed the agreement with Daewoo International, the special trade and overseas investment company of South Koreas multinational Daewoo Corp. Masteel has so far exporting billets in south east Asian region through a local dealer.
The Daewoo contract starts in October and will contribute RM20 million to Masteels revenue for the current year ending December 31.
Masteel CEO Mr Tai Hean Leng said the agreement was part of Masteels continuous effort to increase export sales through a wider network of foreign buyers. He said the contract will help increase its export portion this year from 30 per cent to 40 per cent.
Masteel exports to Singapore, Australia, Vietnam and the Philippines. Mr Tai said it has this year penetrated into Thailand and Indonesia and will soon enter Bangladesh. He added that these countries have always been an important market for Masteel, as the region currently imports 4.5 million tonnes of steel a year from outside.
Arcelor inaugurates the medium sections mill Belval in Luxembourg
Arcelor has inaugurated Belval Medium Sections Mill at Esch Belval site in Luxembourg on Tuesday. The ceremony was attended by the Head of State of Luxembourg, Grand-Duke Henri, the Luxembourg minister of Economy and Foreign Trade, Jeannot Kreck the Chairman of the Board of Directors of Arcelor, Joseph Kinsch, and the Chairman of the Management Board of Arcelor, Guy Doll
This rolling mill, one of the largest investments in Luxembourg, carried out by Arcelor since its creation, has an annual production capacity of 800,000 tonnes. It produces light and medium size sections, U channels and angle sections.
"This new asset installed in Luxembourg, in the heart of Europe, is a modern facility that incorporates state of the art rolling techniques. It reflects our will to permanently improve the productivity of our European facilities and to face the challenges set by the dynamic and rapidly evolving global competition in our sector of activity", underlined Arcelor CEO Mr Guy Doll who referred to the new facility as part of "the chain of excellence launched several generations ago in this region".
SSAB orders Danieli cold plate leveler to increase output
Svenskt Stal AB has contracted Danieli to supply a new cold-plate leveler for high-strength steel, to be installed at its plant in Oxelund, Sweden. The new order follows the recent start-up of two Danieli cut-to-length lines for high-strength strip at SSABs Borlge plant.
As detailed by Danieli, the new machine is part of an expansion at Oxelund to increase plate production. The leveler design involves nine, independently driven rolls, with rolls sized to3.4 m in length. The machine will feature hydraulic automatic gage control, roll bending, top-roll independent height adjustment, and automatic cassette change.
The maximum leveling force will be 18,000 kN. The frame sturdiness will be enhanced by four pretensioned tie-rods.
The drive system will be designed for optimal performance and simple operation, according to Danieli. The contractor is also supply auxiliary equipment, and installing the interconnecting piping.
Production for the new line is expected to start in March 2007
Global Steel to invest $300 mln in Kremikovtzi
India's Global Steel Holdings Ltd GSHL, has earmarked $300 mln for investment in Sofia based metallurgical plant over the next 4 years as per a statement of Mr Alok Gupta, ED of Kremikovtzi. GSHL did not reveal how it intends to finance the large-scale investment program.
The cost of aligning the metallurgical plant to EU standards is seen at $60-70 mln. As much will be spend on environmental projects. Productivity and capacity utilization will be improved on another $180 mln.
Mr Gupta has said that GSHL intends to have Kremikovtzi operating at its full annual capacity of 2 mln tons within 2 years. Despite some ongoing renovations, this year's steel output is expected to exceed the 1.25 mln tons produced in 2004. Production is seen further rising by 30-40% in 2006 to 1.6 mln tons.
GSHL finalized the acquisition of Kremikovtzi's from majority owner Bulgarian Finmetals Holding, which controlled 71-per cent in Kremikovtzi, at unknown amount in August although industry sources valued the deal at around $100 million.
Kremikovtzi steel production is expected to see a rise of 30 to 40 pct within next year and to double within two a half years time. The Bulgarian steel giant is to point on increasing domestic sales and keeping its present market share in Spain, Italy, Greece and Portugal, the new company CEO added.
China's ferro-alloy exports down 4.9% as duty change bites
The abolition of the ferro-alloy export tax rebate early this year has appeared to start working, with Chinas year-to-date exports showed a 4.9% decrease year-on-year, the General Administration of Customs announced.
China exported 112,867.4 tonnes of ferro-alloys in August, pushing the eight-month total to 1,206,715 tonnes, down from the 1,269,306.4 tonnes registered one year earlier.
Japans reduction is primarily responsible for the export decrease. The country imported 353,928.6 tonnes from January to August, down 24.2% year-on-year. South Koreas imports were also reduced by 4.4% to 234,156.8 tonnes, the figures have revealed.
Exports to Taiwan totaled 94,657.5 tonnes, showing a sharp decline of 33.1% year-on-year, while shipments to Rotterdam, the Netherlands rose 8% to 98,738.7 tonnes, most of which is estimated to be noble alloys.
But the most notable increase was in the figure for the United States, with its eight-month total of 133,259.5 tonnes increasing by up to 90.7% on a year-on-year basis.
SUEK to invest in construction of coal terminal of in Khabarovsk
Siberian Coal Energy Company SUEK has concluded a number of contracts for construction and delivery of equipment for bulk terminal of coal complex in bay Muchka in Khabarovsk region. The investment level of SUEK in the construction of terminal will total over US$100 million. The volume of annual trans shipment is planned at the rate of 12 million tones.
The contractor for delivery of technological equipment is German MAN Takraf Foerdertechnik GmbH and Serbian Ivan Milutinovic PIM will act as contractor for building and assembly works as well as for balancing and commissioning of terminal.
SUEK is the major coal group in Russia and the company supplies nearly 30% of coal to the domestic market and around 20% of export. SUEK has its affiliates and subsidiaries in Krasnoyarsk, Khabarovsk and Primorsky Territories, Irkutsk, Chita and Kemerovo regions, Buryatia and Khakassia. SUEK is the only coal company in Russia which has entered the top ten global coal producers.
China Shougang places order for high capacity tandem pickling line
China Shougang Corporation of Beijing, PR China, has placed an order with SMS Demag AG of Germany for the supply of a coupled high-capacity tandem pickling line.
The line will be fully equipped with the latest technology, including the most recent generation of turbulence pickling technology, patented immersion covers for the turbulence pickling tanks as well as a laser welding machine. The five-stand CVC6 tandem line has an Edge Drop Control system (EDC) as well as a carrousel reel. High-performance extraction and filter systems guarantee environment friendly operation.
With this line, China Shougang Corporation intends to manufacture high-grade and high-strength strips, e.g. for the production of high quality automobile outer parts, DP, BH and Trip steels.
The minimum strip thickness amounts to 0.2 mm, the maximum strip width is 1870 mm. Annual production is approx. 1.8 million tonnes. The first strip is scheduled to be pickled and rolled on the plant at the end of October 2007.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
Mn and ferro-alloys down in Ukraine
Ukraine lowered production of ferro-alloys and manganese in the first eight months of this year, as well as that or steel, latest figures show. Domestic manganese ore output totaled 1.41 million tons in January-August, which represents a decrease of 10% year on year.
Year to date ferro-alloy production of 998,000 tons is a fifth lower than comparable period in 2004.
Ukraine produced 20.94 billion tons of finished steel during the period, down marginally year on year, with total steel output dipping by 3% to 25.03 billion tons. Iron production also dropped by 3%, to 20 billion tons, although iron ore output rose by 8% as compared to the first eight months of 2004
OMK pipe holding targets 2005 revenue of $2 bln
United Metallurgical Company OMK Russia's second biggest pipe manufacturer, forecasts revenue of $1.8 billion-$2 billion in 2005, Mr Anatoly Sedykh, the holding's president, told press
Mr Sedykh said profit would be significantly higher than in 2004, without giving any figures. Consolidated net profit soared 80% to 5.44 billion rubles in 2004. Revenue was up 50% to 40.17 billion rubles and EBITDA grew 40% to 7.68 billion rubles.
OMK, which includes five major metallurgy companies, produces 20% of Russia's large diameter pipes for the fuel and energy sector, more than 70% of the country's automobile springs and more than 50% of the country's rail wheels.
Arcelor Chinese 50:50 JV with Laiwul doubtful
Arcelor, the world's second-largest iron and steel producer, which had planned to set up a 50-50 joint venture with Laiwu Iron & Steel Co Ltd to build a new iron and steel production base at Rizhao port in Chinas eastern Shandong province seems doubtful
As per a report in a Chinese daily Mr Meng Lingjun, the deputy director of metallurgical department of the National Development and Reform Commission (NDRC) has told that the central government will disallow the proposed Arcelor takeover of a 50% stake in Laiwu Iron and Steel.
"Arcelor had put pressure on the central government to approve the buyout of Laiwu Steel, but the central government repeated that it would not give an exception to the European steel maker to break the newly-published Chinese steel industry policy," Mr Meng is reported to have said.
Mr Meng made the comments on the same day reports came out in the Chinese media that Arcelor reached the 50% share takeover agreement with Laiwu Steel, the listed arm of Shangdong Province's largest steel maker Laiwu Iron and Steel Group, to purchase a controlling piece of the company.
Mr Li Xinchuang, the vice president of the China Metallurgical Industry Planning and Research Institute, told press that Arcelor could take a detour around the governments blockade and increase its shares step by step.
The central government has also denied Mittal Steel's purchase of 50% of Valin Pipe and Wire Valin, the listed subsidiary of Valin Iron and Steel Group, forcing Mittal to agree to decrease the stake and relinquish a controlling position. On September 21, Valin announced the government's final approval of Mittal's purchase of a stake in the company, after the two companies agreed to decrease the size of the deal.
Danieli to supply Mills, EAF, Caster to Mexican Talleres & Sidertul
Talleres Y Acero S A de CV contracted Danieli to supply a new wire-rod mill at its Orizaba steel works, alongside the existing bar mill and steelmaking plant. The new mill will have a capacity for 300,000 tons per year of 5.5 to 16 mm diameter low carbon, medium carbon and low alloy wire rod in coils weighing up to 1.5 metric tons. The new Talleres Y Acero line will start in the second half of 2006.
The line will be arranged as 14 housing-less roughing and intermediate stands in a horizontal vertical sequence, plus a 10 pass twist free DWB high speed finishing block. This will be followed by a DSC controlled cooling line and wire rod coil forming and finishing facilities. The supply also includes the associated electrical and automation systems, a water-treatment plant, compressed-air system, and roll turning shop, etc.
In a separate project, Siderurgica Tultitlan SA de CV Sidertul placed an order with Danieli for a complete rebuild of its steelmaking facilities to increase billet production from 350,000 to 600,000 tons per year. The project includes also a rolling mill upgrade. The modifications to the melt shop and billet caster are planned to match the markets raw material availability and produce commercial-grade billets.
The plans include replacing the electric furnace with a new 60-metric ton Danarc EAF, completely revamping and modernizing the existing three-strand with new tundish, tundish car, molds, oscillating tables, secondary cooling system, and withdrawal/straightening units. And, the new design will allow later addition of a fourth strand, new primary and secondary fume dust collection systems, Auxiliary systems, including a new water-treatment plant and all electrical, automation, and process control system. A new ladle furnace is expected in a later stage of the project.
Their existing rolling mill, originally supplied by Danieli in early 1990s, will be modernized by extending the cooling bed and installing a new CCL system comprising of multi strand straightener and pendulum type cold shear, to keep up with the mills production capability and improve finished product quality. New bending machines for bar bundles will also be installed too. Danieli Automation will install new process controls, up to Level 2. The redesigned mill will produce bars and profiles in smaller sizes at up to 75 tons per hour.
Ukrainian Police question Mr Akhmetov in a criminal case
Ukrainian police on Sept. 26 questioned the country's wealthiest tycoon as a witness in several criminal cases. Mr Rinat Akhmetov, a coal and steel magnate, "gave full answers to all questions" of police investigators, Interior Ministry spokeswoman Inna Kisel said, refusing to elaborate. No details were available on what criminal cases Akhmetov was asked about.
The tycoon and his businesses have faced increasing pressure since Mr Viktor Yushchenko became president in January and began a government crackdown on shady business deals dating back to the administration of former President Mr Leonid Kuchma. Last month, police stormed and searched the tycoon's office in his native town of Donetsk in eastern Ukraine in connection with an investigation into tax evasion and abuse of power.
In July, police summoned Akhmetov for questioning about an alleged 1988 assassination attempt
Mr Akhmetov's US based lawyers have described all the investigations involving their client as politically motivated.
GHC signs MoU with Danieli for Mussafah steel plant
Abu Dhabi based state owned General Holding Company GHC has signed a MoU, about a fortnight ago, with Danieli & Company for supply of technology to the proposed Mussafah integrated steel complex. The estimated $550 million plant will have capacity of 2 million tonnes a year and comprise a direct reduction iron plant, melt shop facilities and a wire rod mill.
As part of the project, the existing Mussafah rolling mill will also be doubled in size to 1.2 million tones a year
With a production capacity of around 2 million tonnes a year, the complex is set to meet market demand of 4 million tonnes per year and post an annual growth of about 15 per cent.
A final agreement between GHC and Danieli is expected to be signed by year end. A new company, Emirates Iron & Steel, will be established by GHC to undertake the project, which has been under discussion by several Abu Dhabi government agencies for some time.
Atkins of Britain will provide the technical consultancy services for the project, which will be constructed at Abu Dhabi Industrial city.
Hyundai Shipyard to invest in Chinese steel mills for SBQ plates
Hyundai Heavy Industries Co, the world's largest shipbuilder, plans to invest in a Chinese steel company to cut costs.
We are interested in investing,'' Kim Kwang Kook, a spokesman for Hyundai Heavy said in a telephone interview yesterday, confirming a newspaper report. However, nothing has been decided.''
Mittal Steel SA pollution control project to commission in December
Mittal Steel SA has announced that its R220 million project to ensure that its Vanderbijlpark effluent discharge facilities are amongst the best in the world is scheduled for completion on time in December. The implementation of a zero effluent process discharge (ZED) facility at Mittal Steel South Africa's Vanderbijlpark Plant will ensure that there is zero effluent release from the plant and it will help reduce the plants water usage by 30%. The capital expenditure on the plant forms part of the firm's plan to spend nearly R1-billion over the coming years cleaning up the environmental impact of its operations.
One of the major projects proposed by the plan was the construction of a Main Treatment Plant (MTP) which will result in a ZED facility with main objective to prevent any process effluent water from being released. This will ensure that there is no negative impact on the environment or in the community and will contribute to the Department of Water Affairs objective to lower the salinity in the Vaal River Catchments Area. An added benefit will be an about 30% reduction of fresh water intake from the Vaal Dam and Vaal River into the Vanderbijlpark plant. The reclaimed water will be used in a closed loop system within the Works as make-up water to low and high quality water users.
The ZED project consists of the separation of process effluents and storm water that originate inside the Works; the upgrading of the current Central Effluent Treatment Plant (CETP) and Terminal Effluent Treatment plants (TETP); the building of new treatment facilities at TETP namely the Main Treatment Plant and the redistribution of the reclaimed water to plants within the Vanderbijlpark plant.
The next project set for completion at Vanderbijlpark as part of the Master Plan is the reducing of emissions from the Coke Ovens. Construction started in January 2005. Mittal Steel South Africa says it expects to spend R310-million on the project with a target date for completion in October 2006.
Hiesco & Combined win six inch 1400 Km pipeline
Kuwaits Combined Group and Heavy Industry Engineering & Shipbuilding Company have been awarded two contracts, totaling more than $138 million, to supply and replace the flow line network in the states northern and western oil fields. Construction is expected to take about four years by Kuwait Oil Company KOC. Once completed, the schemes will increase crude handling capacity from the three areas by 10,000-20,000 barrels a day.
Combined Group was regarded as a favorite to win the contract covering the northern fields after submitting the lowest bid of $89 million for the work in the spring. The contract covering the western fields was awarded to the second lowest bid of $55 million submitted by Hiesco, as the tender documents stipulated that one company can win only one of the three flow line upgrade contracts available and the lowest bid of Combined Group was not considered. The third package, covering the southern and eastern fields, Mechanical Engineering & Controls Company MECC is the lowest bidder at $82 million and is expected to be awarded the contract soon.
Each package calls for the supply and installation of up to 1,400 kilometers of six inch diameter carbon steel pipe running from oil field wellheads to their requisite manifolds and gathering centers.
Brazilian foundry association eyes $1bn in 2005 exports
Brazilian foundry association ABIFA forecasts US$1bn in sector exports for 2005, the organization reported during a press conference as against $852mn export in 2004. During January August 2005 the industry registered 30% growth in export revenue and a 16% increase in export volume due to iron and steel foundry production compared to January August 2004.
ABIFA predicts the sector will end 2005 with 3Mt in production and 5% revenue growth over 2004's level of US$4.2bn. Exports have sustained a 10.5% average growth rate over the last 24 years.
Brazil is the world's ninth largest foundry products manufacturer, ABIFA President Mr Luiz Carlos Kock said to local press. "In 2005 we expect to be the seventh biggest producer, leaving countries such as Italy and France behind." He added that 80% of Brazil's production went to domestic markets such as the automobile industry
ABIFA boasts members such as Fundio Tupy, Foseco and Teksid.
Russia mulls Cr import duty cancellation
Russia is considering the abolishment of import duties on chrome ore and chrome concentrates, the Economic Development and Trade Ministry has confirmed.
Domestic ferro-chrome producer Serov Ferroalloy Plant has lodged a formal application with the Interdepartmental Commission for Trade Protection and Customs Policy, seeking the removal of the tariffs. The Sverdlovsk region firm argues that Russian chrome ore output fails to meet more than a quarter of its requirements, and so the company must import the majority of its material from the likes of Albania, India, Kazakhstan and Turkey.
The cancellation of the import duty on chrome ore and concentrates would increase the competitiveness of ferro-alloy companies and expand their presence on the domestic and export markets, explained the ministry in a statement.
New Hope plans to expand to cash in coal demand
Coalminer New Hope Corporation is considering a move into property development to cash in on the state's property boom and boost earnings. The $406 million sale of New Hope's 43.8 per cent stake in the PT Adaro international coal business three months ago has significantly reduced the company's future earnings profile despite plans to ramp up production at its New Acland mine near Toowoomba.
Consequently, New Hope plans to take a closer look at the "significant" land holdings near and around its mining operations in south east Queensland as part of a strategic review.
"Due to the recent buoyant real estate market in the region, particularly around Ipswich, New Hope is evaluating medium to long term development opportunities for these land holdings over the next review period," the company said in its annual report yesterday.
New Hope plans to focus on upgrading its existing resource base, ramping up exploration for thermal and coking coals and evaluating other opportunities in the energy sector and port infrastructure.
Although spot coal prices are expected to fall New Hopes Chairman Mr Robert Millner, who also heads the WHSP board, said the company's position remained strong as contract prices for thermal coal were set to remain firm.
"Increased competition in the international coal market and high supply levels from Chinese and Indonesian producers will exert downward pressure on prices over the medium term," he said.
New Hope is 62 per cent owned by investment group Washington H Soul Pattinson Ltd (WHSP).
Inner Mongolia to shut all small coalmines within two years
Inner Mongolia's Coal Industry Bureau announced that all coalmines with an annual production capacity of less than 100,000 tons will be shut by the end of 2007 in order to adjust the industrial structure, raise the coal recovery rate and improve work safety
The Inner Mongolia government has released a list of 250 small coalmines that must be integrated. These coalmines will be shut if they cannot meet requirements after they have been consolidated.
In the meantime, the government plans to build two coalmine bases with annual production volumes of over 100 mln tons, and four bases with annual output of over 50 mln tons. In addition, coalmines will not be approved if their annual production capacity is below 1.2 mln tons. The number of total coalmines will be controlled to within 600.
Inner Mongolia Autonomous Region had 1,174 registered coalmines with a total annual output of over 200 mln tons in 2004
Hyundai mulls construction of CZK 50 bln plant in Czech Republic
South Korean carmaker Hyundai is considering plans to invest CZK 46 bln (USD 1.9 bln), in a new production facility in the Czech Republic, an analyst has informed local press, referring to a report in the Korean daily Korea Economic.
Hyundai declined to confirm the information.
It is reported that South Korean Vice Premier for Economy Martin Jahn mentioned a major investment in North Moravia on September 20. He said that in no later than a year the Czech Republic would like to conclude talks with at least one large investor which would employ thousands of people in North Moravia.
Hyundai is reportedly considering the Ostrava region of North Moravia for the new plant. If the firm decides to move ahead, construction work could start in May 2006. The new plant should have annual production capacity of some 300,000 cars.
Nissan to build global production engineering center near Tokyo
Nissan Motor Co said Monday it will build a 5.1 billion yen facility near Tokyo to consolidate its global production engineering function in one place.
Construction on the 30,000-square-meter facility in Zama, Kanagawa Prefecture, will begin in October, with operations expected to start in March 2007, the automaker said
International Coal Group breaks ground for new headquarters
International Coal Group Inc. broke ground on Tuesday for a new headquarters at a business park in Putnam County. ICG said it is moving its headquarters from Ashland, Ky., to a three-story building at the Teays Valley Business Park because the site is centrally located within its operating area and has access to Yeager Airport and Charleston.
The current headquarters was the base of Horizon Natural Resources Co., which New York billionaire Wilbur Ross bought out of bankruptcy last year to form International Coal Group.
International Coal had announced in July that it plans to invest $200 million to open a new underground mine near Grafton. The company is also developing a mining complex in Raleigh County. With mining complexes in West Virginia, Kentucky, Virginia and Illinois and about 1,900 employees, ICG has an estimated 510 million tons of reserves.
Transnet makes coal line tariff proposal
The long awaited start up of the Richards Bay Coal Terminal Phase Five expansion may be on the cards sooner than hoped for as Transnet spokesperson Mr John Dludlu confirmed to a mining weekly that it has made a comprehensive proposal to the coal-miners and is awaiting their response.
Richards Bay Coal Terminal spokesperson Mr Terry Howarth also indicated that once conclusions with Spoornet are finalised a final decision on the long-awaited Phase Five expansion can be made.
Shareholders in the RBCT include companies such as Anglo Coal, Eyesizwe Coal, Kangra Coal, Sasol Mining, Total Coal South Africa as well as Xstrata South Africa.
Phase 5 involves expanding the terminal from 72-million tons to 82-million tons a year but, in 2004, a common user tonnage of four-million tons a year was introduced, explains Venter. This effectively takes the expanded capacity up to 86-million tons a year.
According to RBCT's Website, and confirmed as correct by Howarth, these expansions will comprise constructing an additional 17 hectare of stockpile area, which is to accommodate an additional 13 stockpiles and increase stockpile design capacity by a million tons.
