September, 09 2005
Tata Steel signs four MoUs with Jharkhand
Tata Steel on Thursday signed four separate MoUs with the Jharkhand government, including investment of around Rs 42,000 crore in a 12 million tonne greenfield integrated steel plant at either Manoharpur or Chandil.
Another Rs 11,000 crore is expected to be invested in expansion of existing projects at Jamshedpur from 5 million tonnes to 10 million tonnes, taking the total investment in the state to Rs 53,000 crore. Two MoUs are on cooperation in the HRD sphere through opening of polytechnics and industrial training institutes.
The MoUs were signed by Jharkhand chief secretary Mr PP Sharma and Tata Steel MD Mr B Muthuraman in the presence of Tata group chairman Mr Ratan Tata and a number of Cabinet ministers.
The greenfield plant is to come up in two phases, the first of 6 mt per annum to be set up in 36-54 months after obtaining statutory clearances. The project includes development of iron ore mines and sources of other raw materials including coal, as also logistic linkages for the plant.
Mr Muthuraman said, The new integrated steel plant and the expansion of the Jamshedpur steel plants will give further impetus to the industrialization of the state.
Steel ministry to curb iron ore exports
Even as the government finalizes the iron ore export policy, ministry of steel has begun an exercise to tighten the screw on iron ore mining and trading companies to prevent excessive exports. Steel minister has asked both the public and private sector ore companies to increase their supplies in the domestic market before signing any deal for exports.
NMDC increased its supplies in local market by 3 million tonne in last fiscal and is looking at increasing supplies to domestic steel companies negotiating for long-term contracts. For current fiscal, NMDC is planning to divert about 1.7 mt more in the domestic market on its incremental production and exports. The ministry has asked NMDC to make provisions for additional 8-9 mt of ore for domestic consumers from fiscal 2006-07.
Essar Oil & Gardes Energy to set up 50:50 JV
Essar Oil has struck a deal with the US based Gardes Energy Services for driving up its exploration business. The two are joining hands to form a 50:50 joint venture, which will offer the technology and allied services for drilling and exploration in coal bed methane CBM and oil and gas
The JV will bid for drilling and exploration in CBM and oil and gas blocks both in India as well as abroad. The immediate focus will be on Russia, Kazakhstan, China and Turkey besides India.
For Gardes Energy, known for its proprietary technology for multi-seam, multi lateral drilling process for recovery of CBM and shale gas, the JV will not only mark the foray into India, but the region itself. The companys state of the art technology enables higher gas recovery rates and thus, substantially reduces the costs of drilling and completion.
Mr Shishir Agarwal, ED E&P division, Essar Oil, said while Essar Oil will bring in its drilling rigs, besides manpower and logical support and procurement expertise, Gardes Energy will bring in its proprietary technology to the JV.
ADB projects better growth for India in 2006-07
The Asian Development Bank ADB has raised its growth forecast for India for 2006-07 from 6.2 per cent to 6.8 per cent. The growth forecast for 2005-06, however, remains 6.9 per cent, the same as given in its Asian Development Outlook 2005, released earlier this fiscal.
Indias outlook continues to look bullish in 2006, lifting the sub-regional average for South Asia to 6.6 per cent compared with 6.2 per cent forecast in ADO 2005, said the Asian Development Outlook 2005 Update. ADO is a supplement to ADBs flagship publication that forecasts economic trends in the region.
The growth forecast for China has also been scaled up to 9.2 per cent in 2005-06, up from 8.5 per cent projected earlier. The forecast for Chinas next fiscal is 8.8 per cent, against 8.7 per cent forecast in the ADO.
Om Metals wins order from Vietnam
Om Metals & Minerals Ltd. said on Thursday that it has secured its first ever overseas contract for the Binh Dien Hydropower project in Vietnam.
The construction of the Binh Dien Hydropower plant started on January 29. Upon completion in 2008, the plant will have a generating capacity of 48 MW.
Om Metals is a major player in the Hydroelectric Projects execution and is engaged in designing, fabrication and installation of gate structures with their hoisting machinery and allied equipment for the power and irrigation projects.
The company manufactures crucial hydro mechanical structures like hydraulic gates, hoisting equipment, wheel gates, steel structures for dams, giant irrigation projects, thermal power stations etc.
Japanese steelmakers to share patents to ward off hostile takeover
Major Japanese steelmakers Nippon Steel Corp, Sumitomo Metal Industries and Kobe Steel Ltd are in talks to share patents in a move that could avert a possible hostile foreign takeover
A spokesman for Sumitomo Metal said 'We are considering it ... although negotiations are still under way. He added that the move was partly designed to ward off a potential hostile takeover bid by a foreign company following a series of huge mergers and acquisitions in the industry in recent years. A spokesman for Kobe Steel also confirmed that the trio was looking into ways at strengthening competitiveness through cross licensing.
Nippon Steel meanwhile issued a brief statement saying the trio, which announced in March they had agreed to promote capital and technical alliances, were considering 'enhancing and deepening a technical alliance'. The Yomiuri Shimbun reported today that senior executives of the three companies were in the final stages of talks on cross-licensing and expected to reach an agreement later this year.
The three plan to include in the contract a clause stipulating that when one of them is acquired through a hostile takeover, the other two would not allow the acquirer to use the shared patents, the daily said. The 'change of control' clause is considered to be effective in preventing a hostile takeover as the acquirer would not be able to use the patents, it added.
The global steel industry has recently experienced a major shake-up. European steel group Arcelor was born of the February 2002 merger of French, Spanish and Luxembourg companies, becoming the world's largest steel producer. But the top slot was taken over in April this year by Mittal Steel of the Netherlands, which acquired US-based International Steel Group
China Minmetals considers joint venture with Brazil's CVRD
China Minmetals, the state owned metals trader and producer, President Mr Zhou Zhongshu has raised the possibility of joint resource development with Brazil's CVRD, the world's largest iron ore producer during an interview with a newspaper. Minmetals is continuing overseas expansion despite the failure earlier this year of its $5 billion bid for Canadian resources company Noranda.
Mr Zhou said the Chinese group was already buying iron ore from CVRD but was interested in expanding the relationship. 'We have suggested to them a new cooperation opportunity and are willing to take part in joint development,' Zhou was quoted as saying, adding that such cooperation would generally be in the form of a joint venture. 'We have already talked to them about this kind of idea, but we need to have substantive discussions with them and we're not at that stage yet.'
CVRD already has plans to build a $1 billion steel plant in Brazil with China's Baosteel.
Zhou said that Minmetals would also consider further resource development in Chile, where it recently sealed a major deal with Codelco. Minmetals is also looking around the world for resources in which China is in short supply such as copper, aluminium, iron ore and nickel, with possible projects involving bauxite in Jamaica, iron ore in Africa, and nickel in Cuba.
Orange revolution grinds to a halt
Ukraine's "orange revolution" has lost its luster in eight months with President Mr Viktor Yushchenko sacking his entire government after its own members accused one another of sleaze, cronyism and debilitating infighting.
Ms Julia Tymoshenko, the country's photogenic and fiery Prime Minister, lost her job and was swiftly replaced with an interim Russian born premier Mr Yuri Yekhanurov
Entrenched differences between Ms Tymoshenko and Mr Petr Poroshenko, the Secretary of the National Security Council, were said to have brought the revolution to a halt. Mr Yushchenko's chief of staff and the architect of the orange revolution, resigned from the government on 3 September, accusing Mr Poroshenko, a confectionery millionaire, of using his post to enrich himself and help wealthy businessmen
Speaking on state television, Mr Yushchenko, who has himself recently faced embarrassing questions about his son's high rolling lifestyle, said he took the decision to disband the government as a last resort. "We are witnessing a paradox. Many new faces have come to power but the face of power has not changed," he said, referring to the previous regime of the Soviet era apparatchik Leonid Kuchma which was widely regarded as being riddled with cronyism and corruption. We need to halt disappointment in society and make sure that the ideals of the orange revolution are not cast into doubt."
Mr Yushchenko said he had ordered an investigation into allegations that several members of his outgoing government were corrupt. He singled out the case of the Nikopol Ferroalloy Plant FAP, which is being wrestled from Viktor Pinchuk, an oligarch tied to the old elite, so that it can be handed back to the state. Its new directors have been accused of having links to Privat a bank run by wealthy businessmen said to be close to Ms Tymoshenko. Mr Yushchenko said he was unhappy with the transfer. It was, he said, "falling into the hands of one band of thugs from another instead of being returned to the state".
Japanese steel makers raise profit forecasts on higher prices
Nippon Steel and JFE Holdings, Asia's two largest steel producers, on Thursday raised their first-half profit forecasts because of higher steel prices. Nippon Steel and JFE have increased contract prices to Toyota and other automakers. They have also raised prices paid by shipbuilders
Nippon Steel's group net income may be 180 billion, or $1.6 billion, in the six months ending Sept. 30, from an April forecast of 130 billion, the Tokyo-based company said in a statement. JFE Holdings raised its first-half forecast by 7 percent. Sumitomo Metal Industries, the world's largest maker of high-grade steel pipes used in oil production, raised its first-half profit forecast by 60 percent. Whereas Kobe Steel, Japan's fourth-largest steel maker, kept its first-half profit forecast unchanged
Both Nippon Steel and JFE' are benefiting from an increase in demand for higher quality steel from domestic customers like Toyota Motor. Higher prices for ship and automotive steel are helping both companies absorb record costs for iron ore and coking coal charged by miners.
Oregon Steel Mills restart of seamless mill
Oregon Steel Mills Inc announced today that it will reopen the seamless mill at its Rocky Mountain Steel Mills plant in Pueblo, Colorado, which has been idle since November 2003, has an annual capacity of 150,000 tons, depending on product mix, and can produce seamless casing, coupling stock and standard and line pipe.
The Mill is equipped to produce tubular products from 5-1/2 inches to 10-3/4 inches in diameter. The production capability of the Mill includes both carbon and heat-treated tubular products. Production is expected to begin in December of 2005 at an annual rate of 100,000 tons with an emphasis on quench and temper seamless casing products.
The company has also reached an in principle agreement with Colorado Seamless Corporation an affiliate of OCTG LLP of Houston for Colorado Seamless to purchase all of the product produced at the Oregons Mill. OCTG will perform full length ultrasonic testing on the Mill product as part of the manufacturing quality control program. Colorado Seamless will ship the product to the OCTG facility in Houston, where the remainder of the end-finishing process will take place.
Oregon Steel also announced today that it has entered into an agreement with a Canadian investment group to construct a facility at the Company's pipe mill located in Camrose, Alberta, Canada, to manufacture, sell and service coiled tubing products. Coiled tubing is a welded product produced in diameters from 1 inch through 3-1/2 inches and wrapped around a spool for continuous feed in oil and gas field applications. Uses of coiled tubing include well completion, well work over and clean out, well stimulation and logging, drilling and production. It is anticipated that construction of the coiled tubing facility will be completed in the first quarter of 2006. Oregon Steel, through a subsidiary, will own 51 percent of the joint venture and will be the managing partner. The joint venture, when operational, will be the only manufacturer of coiled tubing products located in Canada.
Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, small and large diameter line pipe, casing and structural tubing from plants located in Portland, Oregon and Camrose, Alberta, Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colorado, produces steel rail, rod and bar, and seamless tubular products. Oregon, in the first quarter of 2006, we will have approximately 650,000 tons of production capacity dedicated to the oil country tubular goods and line pipe markets.
MaSteel orders three annealing furnaces from Stein Heurtey
French industrial furnace builder Stein Heurtey reports details of two contracts to supply MaSteel International Trade and Economic Corp., Maanshan, China with three vertical furnaces for its new cold rolling mill.
The first order involves a vertical furnace that will feature the latest developments of the Digiflex technology, for a 937,000 metric tons/year continuous annealing line for automotive sheet. This will be the first furnace in China equipped with an "ultra rapid Flash Cooling" system operating under high H2 content atmosphere for processing high strength steel for automotive markets.
The second order involves two vertical furnaces for two new continuous galvanizing lines of 460,000 metric tons/year and 410,000 metric tons/year capacities. These furnaces will be outfitted with after-pot cooling sections, and also will incorporate the latest Digiflex features. Specifically, this includes Stein Heurteys pulse-fired combustion system digitally controlled by a Level 2 optimization system
Allegheny Technologies to expand its Ni & Specialty alloy capabilities
Allegheny Technologies Incorporated has announced an expansion of its premium nickel based alloy, super alloy, and specialty alloy production capabilities. These investments are aimed at increasing ATI's capacity to produce these high performance alloys used for aero engine rotating parts; airframe applications; oil and gas exploration, extraction, and refining; and power generation land-based turbines and flue gas desulphurization pollution control units. These incremental capital investments of approximately $30 million over the next 15 months will be funded from internal cash flow.
Major projects of this expansion, which is expected to increase ATI's premium melt capacity by approximately 20%, includes upgrading and expanding vacuum induction melt (VIM) capacity, installation of two new electro slag remelt (ESR) furnaces and three new vacuum arc re melt (VAR) furnaces.
VIM is a melting process designed for premium grades with high alloy content that require more precise chemistry control and lower impurity levels. ESR and VAR furnaces are consumable electrode re melting processes used to improve both the cleanliness and metallurgical structure of alloys.
Market demand for premium-melt nickel-based alloy, super alloy, and specialty alloy products is currently strong and is expected to continue to grow:
Allegheny Technologies Incorporated is one of the largest and most diversified specialty materials producers in the world with revenues of approximately $2.7 billion in 2004 and their principle markets are aerospace, construction and mining, chemical processing/oil & gas, food equipment and appliance, automotive, electrical energy, machine and cutting tools, and medical. Their products include nickel-based alloys and super alloys, titanium and titanium alloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, silicon and tool steels, and forgings and castings.
Russia & Germany sign agreement for laying Baltic sea gas pipeline
German Chancellor Mr Gerhard Schroeder and Russian President Mr Vladimir Putin sealed an agreement to build a Baltic Sea gas pipeline aimed at boosting Russia's gas sales to Europe and securing uninterrupted energy supplies for Germany.
The agreement was signed between German companies E On AG, BASF AG and Russia's Gazprom and under the terms of the agreement, Gazprom will retain a majority 51 percent of the US$5 billion project, with BASF and E On each taking 24.5 percent stakes.
According to the plans, the 1,200-kilometer pipeline will be commissioned in 2010, and will eventually carry 55 billion cubic meters of gas each year from Vyborg, in northeast Russia, to Greifswald, in northern Germany, bypassing current routes through Poland, Belarus and Ukraine.
A third pipeline, in addition to the one passing through Poland and Belarus and another through Ukraine, Slovakia and the Czech Republic, means a more reliable gas supply for German homes and industry, with Russia supplying a third of Germany's gas and a quarter of Europe's. The new pipeline would also let Gazprom avoid paying more transit fees to Poland and Ukraine and reducing concerns about gas Russia says Ukraine has diverted.
The deal has provoked opposition in Poland, which gets transit fees from gas crossing its territory. It won't lose those fees, but won't reap any from the new pipeline. The news of the signing was met with displeasure in Eastern Europe, where Polish Prime Minister Mr Marek Belka called it a "political" decision to bypass the region. "We are not too happy about the situation," Belka said.
Guangdong to close all coal mines
All coalmines in China's Guandong province are being shut down. The decision from the local government follows the devastating flooding accident that killed 123 miners in the southern province last month.
A Chinese Daily reports that inspections of all coalmines in the province revealed that most of the small and medium sized local mines were operating without a license. The government says most of the mines are low output, and have high rates of pollution.
China has had a series of major coal mine accidents this year resulting in the death of hundreds of miners.
SA Kumba in production and export growth drive
With the aim of increasing its current coal production from 20-million t/yto 43-million t/y by 2012, Kumba Coal, a subsidiary of Kumba Resources, has a number of irons in the fire to ensure that it meets its target.
Kumba Resources GM Coal Mr Ernst Venter said Although the coal industry is generally regarded as a mature industry, the role of coal in the supply of clean energy for the world and South Africa must not be underestimated, especially in the face of dwindling world energy resources and oil reserves, and especially in the next five to ten years
A lot of untapped potential exists for new coal products into new markets, says Venter, adding that coal will remain as the most dominant source of fuel in the world for the next 50 years. In addition, Chinas growth rate of between 7% and 9% a year has caused the dollar-based coal prices for hard coking coal, semi soft coking coal and thermal coal to more than double. Mr Venter believes that the steady growth curve in the coal market is set to continue, as the leveling off of Chinas growth rate will be followed by Indias, which would by then have accelerated.
It is estimated that South Africa has the fifth-largest coal reserves in the world, and has sufficient resources to supply the domestic and export market. According to Venter, Kumba Coal is a key participant in the export market and supplies South Americas metal market, especially Brazil, with pulverized coal injection (PCI) products , India with metallurgical and semi soft coking coal and Europe with reductant coking coal. He goes on to say that the company focuses on a specialty niche export market for its products.
In an effort to ensure that it keeps up with the domestic and export market demand, Kumba Coal has initiated a number of projects aimed specifically at increasing its production rate at its three coal-mines.
Kumba, the largest supplier of coal to the domestic metallurgical market, produces about 20 million tonnes, out of which 14 million tonnes is allocated to power utility Eskom and 5 million tonnes is supplied to the metals market in SA mainly Mittal Steel and ferroalloy industry. The balance 1 million tonnes is exported as PCI and semi soft coking coal.
Collectively, the three coal mines, Grootegeluk in Limpopo Province, Leeuwpan near Delmas north of Pretoria, and Tshikondeni mine situated 140 km east of Musina, in the Limpopo Province account for 20 million tonnes production. The openpit mine produces 17.5 million tonnes and balave is through underground mining
In addition to operating the worlds largest coal beneficiation plant, Venter says that the Grootegeluk mine is one of the lowest cost and most efficient coal-mining operations in the world. Most of the production at Grootegeluk mine is thermal coal, supplied to Eskoms nearby Matimba power station by means of a 7 km conveyor belt.
According to Mr Venter, Kumba Coal is aiming to increase its coal exports from 1.1 million tonnes to 2.5 million tonnes by 2007 and has a number of development plans already in place.
Siderar workers threaten strike over salary hike
Argentina's UOM metalworkers' union has threatened to go on strike at flat steel producer Siderar's plants over the latter's alleged failure to comply with an agreement signed in July to increase salaries. Siderar's union claims workers still have not received any kind of salary hike
Siderar employs some 10,000 steel workers and is the only company apart from Acers Bragado that has not reached an agreement with the union to finalize the salary hike, a local daily said.
The UOM agreed with steelmakers in July to a hike of roughly 20% in three phases to be completed in January. The agreement followed the union's partial strike at some 20 plants in the province of Buenos Aires, which impacted companies from the Techint group including Siderar, Dalmine, Siderca and Arcelor controlled Acindar
Chevron starts offshore segment of the West African Gas Pipeline
Chevron Corporation has announced that the West African Gas Pipeline Company Limited WAPCo has commenced installation of the 569 kilometer main offshore segment of the West African Gas Pipeline WAGP. Chevron, through its affiliate company, the Chevron West African Gas Pipeline Ltd., is a 38 percent shareholder in WAPCo.
The offshore route of the 475 million cubic feet per day capacity pipeline will be parallel to the coastline, approximately 15 to 20 kilometers offshore in water depths of between 30 and 75 meters. Pipe will be laid using the lay barge, "Sea Horizon," which can weld and lay the concrete coated pipes at an average rate of two to three kilometers per day.
When the offshore section is completed, it will be connected to a new onshore pipeline and compressor station in Nigeria and the entire 678 kilometer pipeline will link the Volta River Authority's power plant at Takoradi, Ghana to Nigerian natural gas from an existing pipeline located near the city of Lagos. In addition to the delivery point at Takoradi, there will be other onshore delivery points, including regulating and metering/custody transfer stations at Tema in Ghana; Lome in Togo; and Cotonou in Benin. Construction of facilities for these additional delivery locations will commence in January 2006.
Mr John Watson, president of Chevron International Exploration and Production said that when complete, the estimated $590 million project will be the first regional natural gas transmission system to have been developed in sub Saharan Africa. First gas delivery is scheduled for December 2006.
Shareholders of WAPCo, the pipeline owner and operator, include Chevron West African Gas Pipeline Ltd. which holds the largest interest in the company at 38%, followed by the Nigerian National Petroleum Corporation 25%, Shell Overseas Holdings Limited 17%, Takoradi Power Company Limited 16%, Societe Togoliase de Gaz 2% and Societe Bengaz SA 2%
Chevron Corporation, based in San Ramon Calif, is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products.
Iran needs to import 1 million tonnes of scrap
Iran needs to import at least one mln tons of scrap iron for its steel mills annually, said an industry official. Mr Asadollah Farshad, deputy head of Iran Alloy Steel Company, told ISNA that the country imported some 500,000 tons of scrap iron from its northern neighbors, 150,000 tons from European countries and 200,000 tons from Iraq last year, when national industries also supplied some 150,000 tons of scrap iron.
The official said Iran exported 150,000 tons of scrap iron last year, stressing that national industries are more inclined to export scrap iron than sell it to domestic steel production units. He said China, India and Pakistan are the largest importers of Iranian scrap
Mr Farshad said there is an estimated two million tons of scrap iron in war ravaged Iraq, adding that Central Asian states are also keener on exporting scrap iron to China than to Iran due to lower transportation costs. He said scrap iron coming from Europe is of higher quality than those produced in Central Asian states.
He said even if national steel output reaches 48 mln tons under the 20-Year Perspective, the country will still need to import the product. There are plans to increase steel production capacity to 40 mln tons by 2010. Nine mln tons of steel were produced last year, when six mln tons were imported.
Steel production units are under mounting pressure due to excessive imports. Steel import duties stand at 15%. Experts say excessive imports would discourage private companies from investing in steel projects
Czech Demand for steel down
Czech steel production slowed in the Jan-June period due to lower demand abroad as well as at home. Crude steel production fell by 15 percent on the year, and steel makers cut their final production by 13 percent. Their sales however went up as per the recent data from Hutnictvi zeleza association. In absolute figures, steel production decreased by 415,000 tonnes to nearly 2.4 million tonnes.
Mr Milos Nyvlt, chairman of the Association of Steel Distributors, confirmed that conditions on the steel market deteriorated in the first half of the year.
Customers had stocked themselves up and demand dropped early in the year and moreover a lot of steel was imported to the country from abroad, said Mr Nyvlt.
In contrast, steel makers' sales grew by about CZK 8 billion. To maintain high prices, steelworks cut production at some of their facilities or launched extensive reconstructions. Biggest producer Mittal Steel Ostrava CFO Mr Radim Valas said sales are growing and conditions have improved and that the company expects to make profits at the end of the year. Companies are raising labour productivity and laying off staff.
Russian export of coal in January-July 2005 climbed 11.3%
Export of coal in January-July 2005 amounted to 42,769 million tones, up 11.3 percent from the same period a year ago when it was exported 38,411 million tones, Federal Customs Service said.
Export of coal for an accounting period made up US$2,025 billion against US$1.4 million for the first seven months in 2004.
Import of coal in January-July was 12,644 million tones, down 9.2 percent from the same period last year (13,925 million tones of coal).
Import of coal for the first seven months rose to US$216.3 million versus US$131.3 million in 2004.
US asks Pakistan to use Afghan ore
The United States has urged Pakistan to liberalize customs laws to allow the free movement of goods into Afghanistan vital for the reconstruction of the war torn country. General Karl Eikenberry, CO of US forces in Afghanistan, said this in a meeting with Dr Salman Shah, financial advisor to the prime minister
General Eikenberry said Pakistan should import iron ore from Afghanistan to boost its steel industry amd Mr Shah said Pakistan would consider this.
Urals Mining and Metallurgy to build a casting plant
The Urals Mining and Metallurgy Co. holding is considering building a casting plant in the Volga region to smelt steel for the Serov Metallurgical Plant, which is part of the holding. The plant is reportedly to have a capacity of 600,000 steel feeds per year. The new plant will require 220 million in investment and be online by 2007.
This indicates that the Serov plant will be reoriented toward recycling scrap metal, with its ferrous raw materials base, the Bogoslovskoe Mining Group, sold to the Evraz group, which buys ore from it for its Nizhny Tagil Metallurgy Plant and Vysokogorsky Mining and Metallurgy Combine.
The Urals Mining and Metallurgy unites about 30 enterprises. It is the second largest producer of brass in Russia. The Serov Plant produced 575,000 metric tons of steel building materials in 2004, and the Bogoslovskoe Group produces 2.6 million tons of ore annually. Bogoslovskoe Mining Group is expected to fetch around $70 million. Both the Bogoslovskoe Group and the Serov Plant were offered to Evraz several months ago, but that holding passed on the latter.
General Steel and Baotou form JV for long products in Mongolia
General Steel Holdings Inc, a leading manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles, today announced that the board of directors of General Steel Holdings and Baotou Iron and Steel (Group) Company, Limited has in principle agreed to a joint venture which will be signed shortly.
The joint venture will focus on making alloy rods for industrial use. The joint venture will establish a hot rolling facility in the Kun Du district, Baoutou City, Inner Mongolia to produce alloy rods, tubular billets, round bars, channels and I-beams.
General Steel Holdings, Inc. and its subsidiary, Tianjin Da Qiu Zhuang Sheet Metal Co Ltd a People's Republic of China limited liability corporation, is a manufacturer of high quality hot rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to six production lines capable of processing 250,000 tons of 0.7-2.0mm hot-rolled carbon steel sheets per year, making the company the largest producer in its product category in China, with a 40% market share of all steel sheets used in the production of agricultural vehicles in China.
Baotou Iron and Steel (Group) Company, Limited, was reorganized in June 1998 from Baotou Iron and Steel Company, established in 1954. It is a large producer of iron and steel and has the largest scientific research and production base of rare earth products in China. It is also the most important basic industry and the first enterprise whose total sales is over 10 billion in Inner Mongolia Autonomous Region. It is one of the top 100 largest companies in China.
Mittal Steel buys 89% of local Port in Galati
Mittal Steel Galati has announced that it has acquired a majority stake in Romportmet, a port facility located in Galati, Romania by increasing its shareholding in Romportmet to 89% through the acquisition of approximately 20 million shares from the Broadhurst Fund, the current majority shareholders at a total cost of $ 47 million.
Mittal Steel Galati is already one of Romportmet's major customers and the company previously owned an 11% stake in the port.
Mittal Steel Galati CEO, Mr. KAP Singh said 'As part of our continuous efforts to manage cost effectiveness of all our Romanian production facilities, we have decided to integrate Romportmet into our asset portfolio. This will allow us to have better control on shipping and handling services for our products. In addition to the cost saving implications, the acquisition will increase reliability and ensure an improved delivery service for our customers.'
The transaction is subject to the approval of the Competition Council and other relevant Romanian bodies.
Centennial seeking $100m for Tahmoor Mines
NSW coal miner Centennial Coal Co Ltd has announced a big increase to the reserves at Tahmoor mine and a plan to raise $100 million to help further grow its operations. MD Mr Bob Cameron said a review of Tahmoor as part of its integration into the Centennial group showed it had increased coal reserves from 47.5 million tonnes to 80.3 million tonnes.
"The 70 per cent increase in the reserve base has provided greater certainty for the long-term mining operations at the Tahmoor mine," Mr Cameron said.
"This justifies our confidence in the acquisition of Austral Coal, which also provides Centennial with a substantially enlarged presence in the coking coal market."
When Austral, almost 86 per cent owned by Centennial Coal, controlled Tahmoor its management was more focused on fixing operational problems than increasing reserves, Fat Prophets senior analyst Gavin Wendt said.
"So the increase at Tahmoor would probably have come as a surprise to the market," Mr Wendt said.
Centennial also plans to restructure debt and was undertaking an institutional placement to raise about $100 million. "It really positions us to respond to opportunities both internal and external," Mr Cameron said. "We're currently evaluating a lot of internal opportunities and we may be able to get some of those up during this year but I think the plans are more focused on growth in the medium to longer term."
Glencore acquired its stake during the takeover, stopping Centennial from reaching the 90 per cent threshold for compulsory acquisition. But Centennial's scrip offer remains open and it could increase its stake if Glencore fails in its court action against the Takeovers Panel, which has required the Swiss to offer to sell back to shareholders some of their Austral shares.
Altona acquires Arckaringa Coal in SA
Altona Resources has agreed to acquire the Arckaringa Coal Project in South Australia from Rank Geological Services and Bentley Solutions. The project includes three exploration licenses cover 2,500 square kilometers and includes three coal deposits, known as the Westfield Deposit (EL3360), the Wintinna Deposit (EL3361), and the Murloocoppie Deposit (EL3362).
"Altona will acquire a 100% interest in ELs 3360, 3361 and 3362 and the associated data for a consideration of 30m ordinary fully paid shares in Altona," said the group
Dr Kromah helped GIHL to sue Liberian Govt
Credible documents from the Liberia Global Mining Company and the Global Infrastructure Holdings Limited GIHL, signed by members of its Board of Directors, reveals that Dr. Fodee Kromah, Director of the Environmental Protection Agency of Liberia is also a member of the company's board that passed a resolution directing the company to institute US $ 650 M lawsuit against Liberia.
According to the Board's document, which Mr. Kromah endorsed, it determines and directed the company to pursue arbitration in accordance with the rule of the International Center for Settlement of Investment Disputes against the Liberian government. The document also directed and mandated that if and as appropriate; to pursue legal proceedings before the courts in the USA or any other appropriate jurisdiction, in relation to the Mineral Development Agreement entered into between the company and the government of Liberia with regard to the former Liberia Mining Company (LAMCO) concession Areas, it completely supported.
Mr. Kromah has vehemently refused allegations that he is a member of the Liberia Global Mining Company's board
GIHL withdrew their bid for the Nimba Area Mining Concession and all rights in relations to the Buchananan Port and the railway from Yekepa to Buchanana (Western Area Project) in support of the bid of Mittal Steel and its Affiliates. Additionally, the GIHL and Affiliates said due to their support for the 'Mittal Bid', they have agreed to withdraw all complaints, motions, petitions and other actions relating to the Western Areas Projects from the Supreme Court of Liberia and any where in the world.
Although the Global Liberia Mining Company and the GIHL have withdrawn case against the Liberian Government in support of the bid for Mittal Steel and its Affiliates, but Dr. Kromah the Director of the government of Liberia setup Environmental Agency bring the number to two government officials involved in the saga that were to have cost the Liberian government up to US $ 650 M if guilty.
Sir Farmer silent on UK Coal talks
SIR Tom Farmer, chairman of a consortium which has been in talks to buy UK Coal, declined to comment yesterday on the mining group's statement that talks had been resumed.
Sir Farmer said: "I have been advised I cannot add anything to the company's statement." UK Coal said three months ago that discussions with the consortium, which includes venture capital group Alchemy Partners, Farmer's property arm Morston Assets, and the Buccleuch estate, had lapsed because of a lack of detail in the talks.
Export of iron ore and concentrate from Russia up by 5% in 7 months
Export of iron ore and concentrate from the Russian Federation for the first seven months amounted to 10.22 million tones, up 5 percent from the same period a year ago, Federal Customs Service said.
Revenue rose 2.2 times to reach US$543.7 million. Deliveries in CIS fell 34 percent to come to 1.4 million tones.
Export of coke and coal char dropped 14 percent to 1.81 million tones (to the extent of US$329.1 million).
