September, 06 2005
INI Steel to sell two units to Essar
South Korea's INI Steel said on Monday it would sell two steel-making units for about $100 million to Essar Steel Ltd. INI signed an agreement with Essar on Sept. 2 and the steel-producing units were now being dismantled for shipment to India, Min Won-ki, a manager at INI's public relations office, said
The units, which used "Corex" steel technology, were previously acquired by INI Steel and Hyundai Hysco, when they bought bankrupt South Korean steel maker Hanbo Steel last year.
Corex technology is an environmentally friendly alternative to the conventional blast furnace route for the production of hot metal.
Panel to look into IISCOs 45 million tonnes iron ore fines sale
IISCO now a part of SAIL reportedly has stocks worth 40-45 million tonnes of iron ore fines with an average iron content of 55 in its mines at Gua, Jharkhand. 55% Fe content is regarded as low-grade by the industry. The steel ministry will set up a panel this month to help IISCO dispose of 45 million tonnes of iron ore fines at its mines
A SAIL executive confirmed the development saying the fines were of no use because of their lean quality. As of now, the company does not plan to use them in the company's sintering plant, as the transportation costs make it an unviable project, he said
As iron ore prices are moving up, there is a chance to find buyer for the low grade iron ore fines at competitive prices
Orissa government to open chrome ore mines to private bidders
The Orissa government may be asked to open some of the chrome ore mining fields of the Orissa Mining Corporation OMC to private bidding.
This is in accordance with the final recommendations of the Dang Committee
In the report, the committee said large reserved areas should be opened for competent reconnaissance permits, prospecting license or mining license applicants. The move will also be in line with the provisions of the Mines and Minerals Development and Regulation (MMDR) Act.
A reconnaissance permit is granted for preliminary prospecting of a mineral for a period of three years and for a maximum area of 5,000 square kilometers, to be relinquished progressively. The holder of this permit has preferential rights to obtain prospecting license in the area concerned Areas where public sector companies had time-bound exploration programmes could be retained under reservation, it said
The panel also suggested to put through accelerated time-bound geological investigations to prove the entire extent of known ore-bodies and look for additional ore-bodies in new areas. Apart from this, the panel has recommended a technical review of lease boundaries vis-vis chrome ore bodies in the Sukinda valley which accounts for almost 98 per cent of chromite ore deposits of the country
Indian ports gear up to handle surge in iron ore exports to China
Major Ports have expressed confidence about their ability to handle the expected surge in iron ore exports to China
Though there is congestion at Haldia Port, with ships waiting for berths to load iron ore primarily for China, the authorities say that it would be cleared in two weeks, while some of the ports on the western and eastern coasts have emphasized that iron ore shipments would not suffer.
The Kolkata Port Trust, the main port facing congestion due to iron ore cargo, has said its shipments are likely to normalize later this month. As many as 17 of the 20 vessels stranded outside its Haldia Dock Complex are reportedly waiting to load iron ore consignments.
Paradip Ports iron ore exports could be higher at 11 million tonnes, compared to 9.3 million tonnes exported in 2004-05. Port authorities are positive about avoiding any major congestion as a result of iron ore exports.
Mormugao Port, one of the most prominent ports for iron ore exports, on the other hand, has had to close its ore loading operations from July 15 as heavy rains make iron ore too sticky and moisture-laden for handling. Mormugao Port exports 23 million tonnes of the mineral each year to Asian and European countries, including China.
The New Mangalore Port, also in the west, is likely to see an approximate increase of one million tonnes of iron ore exports
India is a prominent source for iron ore, with about 12.6 per cent of the worlds exports. Of the total iron ore production of 140 million tonnes in 2004-05, exports comprised 76 million tonnes, according to trade data.
Indias construction industry in growth mode
Realization that infrastructure would play a key role towards pushing India's GDP to the desirable 8 percent mark has come as a boon for India's construction industry. According to the Confederation of Indian Industry CII, increased investment in infrastructure has led to a surge in the activities of the construction industry, and the industry is riding a growth wave, which is evident from the financial results posted by some of the leading contractors, showing 30 to 100 percent growth rates in the first nine months of 2004-05.
However, the industry is faced with certain challenges. According to CII, the need to be price competitive, adherence to safety, quality consciousness, adapting to technological changes, developing and using new construction materials and having an adequately trained manpower are issues that industry must look into and address.
The CII report states that the Indian construction industry, which is ranked 12th in the world, has the potential to emerge as a front-runner if all construction activity is unleashed in all the sectors. The resultant spin-offs to industry and employment will drive economic growth.
The report also states that even though a major part of the construction work is carried out through contractors, it remains a neglected area. There is a need to standardize and develop a fair and equitable contract document, which should provide adequate incentives for completion of jobs on or before schedule and disincentives for delays. . Use of modern techniques such as PERT, CPM, Value Engineering, Work study should be incorporated in contracts. There is also a need to streamline the system of prequalification
The construction sector in India, accounting for five percent of the GDP, is the second highest employer after agriculture, and provides direct or indirect employment to about 32 million people.
The Indian project exporters have been able to secure large value contracts abroad during the last three decades.
Steel Strips to set up JV wheel plant in Jamshedpur
Steel Strips Wheels Ltd on Monday said that it would set up an 80,000 wheel capacity manufacturing plant at Jamshedpur to be completed in two phases for catering mainly to Tata Motors.
The manufacturing plant would be set up through a joint venture company and company was in dialogue with a couple of potential global strategic partners for this venture
Last month, the company secured an export order for supply of wheels to Germany for Daewoo Matiz car from Kromag Metallindustires, Europes second-largest steel wheels distributor.
The company saw a 72 per cent rise in net profit for the quarter ended 30 June 2005 to Rs 3.84 crore and net sales went up by 42.3 per cent to Rs 40.72 crore.
Steel Strips, manufacturer of wheel rims for cars and utility vehicles, also supplies its products to major car manufacturers such as Maruti Udyog, Fiat Palio, Honda, General Motors, Mahindra & Mahindra, Tata Motors and Bajaj Tempo
Usha Martin to raise $25 m for expansion
The Usha Martin board has approved the issue of global depository receipts (GDR) or foreign currency convertible bonds (FCCB) of up to $25 million (Rs 110 crore) with a green shoe option of 20 per cent. The GDRs or FCCBs will be listed on the Luxembourg Stock Exchange.
The company proposes to fund its capacity expansion programme through a combination of GDRs, convertible warrants, internal accruals and debt. The board has approved a capital expenditure plan of Rs 462 crore to strengthen the wire and wire rope business and to expand the steel capacity to half a million tonnes and also for iron ore and coal mining. The company has already got a 20-year lease registered for mining iron ore in Jharkhand.
Rock dredging under way at Vizag Port
Dhatri Dredging and Construction Pvt. Ltd has commenced rock dredging at Visakhapatnam Port to deepen the inner channel so as to facilitate the entry of bigger vessels. The dredging is scheduled to be completed in 10 months.
Dredging Corporation of India DCI had invited tenders on behalf of the Visakhapatnam Port Trust VPT for executing rock dredging and Dhatri Dredging and Construction offered best bid to execute the work for Rs 24.30 crore and was selected for the project in competition with Jaisu Shipping Pvt. Ltd, Gammon India Ltd and Orissa Construction Company
The areas to be dredged are the inner turning circle up to 12.35 meters and the inner channel up to 11.8 meters. The outer turning circle will be dredged up to 19 meters and the area in front of the LPG berth up to 16 meters.
The company will utilize grab dredgers, hopper barges and drilling and blasting equipment to execute the project.
Visakhapatnam Port has so far handled more than 22 million tonnes of cargo during the 2005-06, against a target of 55 million tonnes. In 2004-05 the Port crossed the 50-million tonne mark, becoming the first Major Port to accomplish this.
RSP launches seven new projects to improve operations
Dr Sanak Mishra, MD RSP has announced seven new projects to enhance the profitability of RSP and improve the quality of life at the mill
All the seven projects named as Dhanlakshmi, Viswakarma, Raksha Kavach, Prakruti, Samskriti, Saraswati and Dronacharya are directed towards achieving excellence in the areas of profitability of RSP, preventive maintenance, safety, environment, art and culture, education and sports, respectively.
Dhanlakshmi envisages of achieving production of 6000 tons of hot metal consistently, working out most profitable saleable steel product mix and identifying the potential cost component where maximum cost reduction can be achieved.
Viswakarma, focuses on preventive maintenance and housekeeping inside the plant, to arrest breakdowns and eliminate surprises. The Task Force constituted for this project will focus its attention on certain key areas including Coke Oven, Machines and tipplers, Blast Furnaces, both the Sintering Plants and Steel Melting Shops.
Raksha Kavach would give additional thrust on equipment safety and enhancing the safety of the workmen.
Prakruti will focus on improving the environment inside and outside the plant. Dust suppression system, water spray system, fume exhauster system and all other existing systems which are required to make our environment pollution free will be the major thrust areas under this project
Gail ventures into coal gasification in China
GAIL has decided to venture into coal gasification activities in China with plans to set up a petrochemical plant in that country. The company plans to invest in a coal-to methanol-to petrochemical plant in Shanxi province of China which has abundant coal at competitive price and is also endowed with large deposits of oil and gas reserves
Gail India will enter into an agreement with Shanxi Huashan Chemical Industry group to carry out a feasibility study for setting up a coal-gasification based petrochemical plant for production of polyolefins and other products.
The two companies will subsequently consider setting up a joint venture for implementation of the proposed project and a distribution and marketing network in China.
Sinopec, an oil and gas major in China, has agreed to develop a cooperation framework with Gail India for coal gasification projects, apart from gas transmission and distribution business.
Coal production up in July
The total coal production in India in July 2005 is estimated at 28.06 million tonnes as against 28.59 million tonnes in July 2004. 477 working mines of Coal India Limited and its subsidiaries produced 24.05 million tonnes, 67 mines of Singareni Collieries Company Limited produced 2.36 million tonnes and other 16 mines contributed 1.65 million tonnes.
The total off take of coal during the month was 29.71 million tonnes. Out of this, off-take by CIL was 25.55 million tonnes, SCCL 2.40 million tonnes and other mines 1.76 million tonnes.
WB government to develop ECL coal mines for Bengal steel units
The Bengal government plans to invite strategic partners for developing the abandoned mines of Eastern Coalfields Limited ECL and those outside the purview of Coal India Limited to facilitate coal supply to the mid sized iron and steel industries that are coming up in the state.
The Bengal government wants to join hands with four to five iron-ore rich states, including Orissa and Jharkhand, for a steady supply of the raw material for the iron and steel industry.
The issue of iron ore has gained prominence following Jindal Steels proposal to set up a 5-million-tonne green field steel project in the state. Bengal is currently negotiating with Jharkhand so that the Jindal can procure iron ore from the neighboring state. The matter is now in the office of the Prime Minister.
ONGC eyeing Assam coal
The Oil and Natural Gas Commission is now eyeing the coal deposits of Upper Assam for energy production to become an energy company rather than only an oil and gas company. ONGC plans to bring in Russian technology for both gas and coal recovery from the coal field of Margherita and the pilot project is starting this winter," he said.
Assam has five mines and a proven reserve of 6 million metric tonnes of coal.
The ONGC has also been actively considering exploitation of coal gas from virgin coal deposits by introducing Underground Coal Gasification UCG technology and has identified the NMRC Skochinsky Institute of Mining, Russia as consultant for the UGC application. The UGC process is a new method for exploitation for coal deposits. Under the process there is no need to develop a virgin coal mine. Coal is burnt inside the deposit to produce coal gas. Subsequently, the same gas can be pumped out and sent through a pipeline to gas consuming industries.
India companies set for carbon trading
More than 112 Indian companies, including Hindustan Lever Ltd and Tata Steel, are set to trade in carbon credits. These companies are ready with clean technologies to bring down the emission levels of greenhouse gases and sell certified emission reductions (CERs) to developed countries.
This is the largest portfolio for any country signatory to the United Nations Framework of Climate Change Convention (UNFCCC). The UN body certifies countries and companies that can trade in carbon credits under the Kyoto Protocol.
According to World Bank estimates, India is expected to rake in $100 million annually by trading in carbon credits and Indian companies are expected to corner at least 10 per cent of the global market in the initial years.
Globally, greenhouse gas emissions are expected to come down by 2.5 billion tonne by 2012. According to industry estimates, Indian companies are expected to generate at least $8.5 billion at the going rate of $10 per tonne of CER. By 2007, when actual trading will start, the cost of a tonne of CER was estimated to rise to $45, said officials in the ministry of environment and forests. One tonne of carbon dioxide reduced through the Clean Development Mechanism (CDM) project, when certified by a designated entity, becomes a tradable CER.
Under the Kyoto Protocol, between 2008 and 2012, developed countries have to reduce emissions of greenhouse gases to an average of 5.2 per cent below the 1990 level. They can also buy CERs from developing countries, which do not have any reduction obligations, in case their industries are not in a position to lower the emission levels themselves.
"It is cheaper for developing countries to reduce emissions than developed countries. As a result, buyers are coming to Indian shores," said Teri Associate Fellow Vivek Kumar. Brazil and China are emerging two of India's strong competitors.
According to industry estimates, some Indian companies have entered into forward contracts with buyers from the European Union. These contracts are estimated at $325 million.
Corus to hike structural sections by GBP20 per MT
Corus Group Monday said as further increases in raw material costs continue to have a significant impact on steel manufacturers, the company has decided to raise prices for U.K. structural sections by GBP20 per tonne effective from Oct. 2, 2005.
Jonathan Sochart, General Manager Sales and Marketing, Sections said: "With European stock levels now in balance, there has been an improvement in demand. Raw materials are purchased at a price dictated by the global market and the constant upward pressure on costs means we have to increase prices for our U.K. structural sections."
Corus is the first of the biggest European steelmakers to announce a price increase for the fourth quarter. Mittal Steel and Arcelor declined to comment.
Corus is one of the world's largest metal producers with annual turnover of over GBP9 billion and major operating facilities in the U.K., the Netherlands, Germany, France, Norway and Belgium
UBS flags upside to iron ore & coking coal forecasts
Commodity specialists at UBS have noted there continues to be upside risk to their price forecasts for both iron ore and coking coal, with market conditions for both commodities supporting stronger prices.
On the brokers current forecasts iron ore prices are expected to decline by 20% next year, while coking coal is expected to fall by US$15/t.
The broker notes iron ore prices are currently 40% above benchmark and the coking coal market remains tight
ThyssenKrupp to expand presence in China
ThyssenKrupp aims to expand its presence in China. "We intend to develop our activities in China, we are looking into further projects and conducting intensive discussions with a number of Chinese partners," said Dr.-Ing. Ekkehard D. Schulz, Executive Board Chairman of ThyssenKrupp AG, in Beijing ahead of the establishment of the new national holding company ThyssenKrupp (China) Ltd in Beijing
The approval of the authorities is expected shortly. The chief task of the new holding company is to coordinate the Group's wide-ranging activities in the People's Republic and provide advisory services for subsidiaries active in the country. In addition, it will establish and develop contacts between high-ranking representatives of the Group and decision-makers in government, administration and industry.
"Owing to its growth perspectives, the Asia/Pacific region is becoming increasingly important for the Group," said Schulz. In the past fiscal year 2003/2004 ThyssenKrupp generated sales of some 3.5 billion euros in the region 13.6 percent of the Group's total foreign sales of 25.8 billion euros. ThyssenKrupp's presence in the region is to be systematically expanded through targeted strategic acquisitions and joint ventures. China is the Group's most important location in Asia. The Group and its two predecessor enterprises Thyssen and Krupp have been active in China for over 140 years. Today ThyssenKrupp has a total of 30 companies in China, with 3,700 employees generating sales of around 1.1 billion euros.
Production cut in US mills starting to pay back
In April and May, GFMS Metals Consulting advocated bringing down production rates to 1.8 million tons per week from the then current levels of 2 million tons per week. There were quick responses from some of the leading producers, most notably those in the European Union and the US.
Finally in June, a concerted slowdown led by the integrated mills achieved that level.
June and July data from the MSCI service centres highlighted the success of the US steel industry in bringing production under control. The impact on inventories in service centres was almost immediate. They dropped by 632 000 tons in June in the US, as shipping rates held and dropped a combined 1.3 million tons over June and July.
This reaction is now starting to pay dividends with mills, especially in the US, looking for higher prices. GFMS-Metals Consulting would caution however, that prices rises will be modest and may not be achieved in all markets. This determination to keep production levels down and the inventory adjustment should help scheduled price hikes stick in September.
Hot-rolled prices had drifted down to as low as $420/ton in late July from the mini mills. Those deals are no longer available. US Steel is trying to raise its prices for September deliveries to $480/ton, and Nucor has stated its intent to add a $60/ton scrap surcharge onto its deliveries for September, which would take prices up to similar levels. These appear to have been successful, and a more buoyant producer sector is already talking of a further $30/ton price increase into October.
Erdemir Group's profits reach 223m USD
Erdemir Group obtained a net consolidated profit of 223 million dollars in the first six months of 2005. The fiscal results of Eregli Iron & Steel Factories Inc. ERDEMIR and its partners ERDEMIR Group for the first six months of 2005 were announced in a news conference on Monday.
The production of ERDEMIR during H1increased by 4.2 percent where as the total production of ERDEMIR Group was 3.83 million tons. ERDEMIR sales amounted 1.62 million tons, while the consolidated sale amount of ERDEMIR Group was 2.94 million tons in the same period.
ERDEMIR net income from sales increased by 29.8 percent to 1.11 billion dollars in the first six months of 2005 over the same period of 2004
The ERDEMIR net profit increased by 34.4 percent to 207 million dollars in the first half of 2005 over the same period of 2004, while ERDEMIR Groups net consolidated profit has been 223 million dollars in the same period.
Auto price negotiations timing in favor of steel mills
Rising spot market prices could not have come at a better time for the flat steel producers that serve the North American automotive market, as Contract negotiations usually begin after the summer and are concluded usually by the end of quarter four.
In 2005, price hikes on contracts were achieved by the steel suppliers, but not as much as achieved elsewhere, including in Europe
The dynamics going into the negotiations this year will be substantially different with US Steel and Mittal a much stronger negotiating duo. Second-tier players such as AK Steel, Dofasco and the mini mills have little spare capacity to take additional automotive business, and will probably follow the leaders on pricing.
Despite the turndown in pricing for much of the year, the recent upturn in the market combined with an altered negotiating position could allow the steelmakers to actually improve their contract-pricing situation this year or at least get rollovers. In fact this is the first real test of the consolidated North American steel industry.
S.African Solidarity strike delayed for court ruling
South Africa's Solidarity union said it had put off a strike scheduled to start on Tuesday at the country's biggest steelmaker, Mittal Steel SA, a unit of top global steel maker Mittal Steel. The strike was put off pending a court ruling due to be delivered on Wednesday afternoon on a court challenge lodged by Mittal Steel to try to prevent the wage related action.
"The judge asked the parties to wait for his ruling on Wednesday before embarking on the strike, and Solidarity agreed to wait," Jaco Marais, a spokesman for the metal workers represented by the Solidarity trade union told press
Brazil Steel Co Usiminas sees high prices for next 2 yrs
Brazilian steelmaker Usinas Siderurgicas de Minas Gerais Usiminas, expects steel prices to remain at historically high levels for at least the next two years because of continued demand from China and high steel production costs
The combination of high prices for key raw materials such as coking coal and iron ore and China's voracious appetite for steel leave little room for a price drop on the international market, Renato Vallerini, Usiminas international business director. "It will be difficult for prices to fall," said Vallerini. "There will be oscillations in the market, but we expect prices to be maintained around the same levels as 2004."
Ilsenburger Grobblech to expand heavy-plate rolling mill
Ilsenburger Grobblech GmbH of Ilsenburg, Germany, a member of the Salzgitter Group, have awarded SMS Demag AG a contract for the supply of a new ultra-fast cooling line and cold plate leveler for 22 million .
The scope of supply includes the mechanical equipment and automation system. With this largest single investment since its commissioning in 1981, Ilsenburger Grobblech will complement their SMS Demag-supplied heavy-plate rolling mill with the intention of strengthening their position as one of Europe's leading suppliers of high-quality heavy plates.
The new ultra-fast cooling line is arranged right past the heavy-plate stand and has an up to three times higher cooling capacity than the existing cooling system. It will serve to provide selective cooling of the plates from the rolling temperature in order to keep mechanical properties within close tolerances. In addition, the cooling line is to be used for inter stand cooling during the two- or three-stage thermo mechanical rolling process, thereby reducing mill idle times.
The new cold plate leveler including all ancillary equipment will be integrated in the existing finishing shop. It will serve for leveling either hot rolled heavy plates that have been cooled right from their rolling temperature or heavy plates that have been heat-treated before. The leveler is capable of leveling plates which are up to 50 mm thick.
For both parts of the new facilities SMS Demag will supply the automation system with process models.
Commissioning of the new cooling line is scheduled for the end of 2006, while the new cold plate leveler will start operating at the beginning of 2007.
SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology. SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
Techint Technologies receives final for STC Furnace in Czech
Techint Technologies received the Final Acceptance Certificate from Trinecke Zelezarny relevant to the 28 MT per charge Short Time Cycle Furnace (STC) N 2 for annealing wire coils, rod coils and bars installed at Trinec Iron and Steel Works Trinec, Czech Republic
In January Techint had already started up the other identical Trinec STC furnace N. 1 which is successfully in operation since then.
Brazilian Gerdau to start marketing $300 million bond in Asia
Brazilian steel maker Gerdau will market US$300 million in perpetual bonds starting in Singapore on Wednesday and than in Hong Kong on Friday. Road shows will then shift to London and Zurich on Monday and Tuesday
The offering is the latest in a steady stream of perpetual deals from Brazil targeting Asia in a bid to answer hefty Asian demand for higher-yielding instruments.
Gerdau recently received foreign currency credit ratings of BB- from Standard & Poor's Ratings Services and Ba1 from Moody's Investors Service
The lead managers of the deal are Citigroup Inc. and HSBC.
Xstrata buys Iluka licenses & Falconbridge shares
Xstrata has acquired Nardell Colliery mining leases from Iluka Resources and adds more Falconbridge shares to its holding. One London based mining analyst notes the Iluka leases are small, but show Xstrata is "still keen" on thermal coal and increases the company's growth options.
Upping the company's stake in Falconbridge boosts Xstrata's holding to some 20.04%. While Xstrata doesn't have to have 20% to equity account its Falconbridge stake, a larger holding makes the case for Xstrata to consolidate Falconbridge stronger, the analyst said.
Dr. Jrgen Olbrich appointed Chairman of ThyssenKrupp VDM
Dr. Jrgen Olbrich has been appointed Chairman of the Management Board of ThyssenKrupp VDM GmbH, Werdohl, effective September 1, 2005. The other members of the Management Board are Burkhard Becker, Ulrich-W. Leggewie and Dr Franz-Josef Wahles
Until June 30, 2005, Dr. Olbrich was Chairman of the Management Board of Edelstahl Witten-Krefeld GmbH. As part of ThyssenKrupp Steel AG's focus on the flat steel business, EWK was acquired by Swiss Steel AG,
Death toll rises at Samancor Chrome
South Africa's Samancor Chrome, one of the world's biggest producers of ferrochrome, said on Monday another worker in hospital died from an accident last month, bringing the death toll to seven. A furnace involved in the accident on Aug 17 was still shut as investigations continued, a spokeswoman added.
The furnace, at Samancor's Middelburg Ferrochrome plant, produces 200 tonnes of ferrochrome per day, and is one of 15 in the entire group and normally operates around the clock.
South Africa is the world's biggest producer of ferrochrome, and has around 70 percent of chromite reserves. Samancor, owned by the privately held Kermas Group, produces around one million tonnes each year of ferrochrome, an alloy made from chrome used in stainless steel to deter corrosion
Keystone Emerges from Bankruptcy
Keystone Consolidated Industries Inc., the Dallas-based parent of Keystone Steel & Wire, reports it emerged from Chapter 11 bankruptcy on August 31. The company gained bankruptcy court approval for its third reorganization plan earlier in the month.
As part of the restructuring, Keystone obtained an $80-million secured credit facility from Wachovia Capital Finance (Central), and the proceeds from this will be used to eliminate the companys existing debtor-in-possession credit facilities and to provide working capital for the reorganized group
Keystone is a diversified manufacturer of industrial products, and Keystone Steel & Wire, Peoria, IL, is an 820,000-tons per year producer of carbon steel billets, wire rods, industrial wire, finished wire products, and nails.
Vinacoal pumps out 19m tonnes
The Viet Nam Coal Corporation Vinacoal has sold 19 million tonnes of coal in the first eight months of this year, an increase of 40 per cent over the corresponding period last year.
Of the figure, export and domestic sales were up by 40 per cent and 11 per cent, respectively, due to higher demand on the domestic and regional markets, especially China.
The country largest coal supplier has targeted the production of 2.8 million tonnes of coal this month, 50 per cent of which will be exported.
Vinacoal, which has 29 open-cast coal mines, 14 pits and three sorting centres, sold 24 million tonnes of coal last year. The corporation said it aims to produce 35-40 million tonnes of coal by 2010, earning US$2.5-3 billion.
Italy hosts coal conference this month
International coal consultancy McCloskey Coal will host a conference on Coal Trade Credit this year in Nice, Italy.
The European Coal Outlook conference will take place on September 20, and will aim to bring together some of the best minds in the coal trade and, through debate, explore ways in which the credit process can be used more effectively to promote liquidity in both paper and physical coal markets.
Presentations will include setting and managing credit limits; netting, margining, guarantees and letters of credit; and hedging contract replacement risk in the insurance market.
