October, 16 2005
SA Mintek forms alliance with Tega of India
South African mining firm Mintek and Tega Industries of India, have formed a strategic alliance for technological cooperation to further develop the Indian market with respect to mineral processing and the metallurgical industry.
"Primarily this collaboration will comprise the provision of a joint consulting service and training to clients in the fields of process control and crushing, screening and milling design and optimization," said Mr Vishal Deeplaul Manager of Mintek Minerals Processing Division.
"This agreement will also create opportunities for Mintek's advanced process control products, MillStar, FloatStar and LeachStar, to be marketed, installed and serviced in international niche markets, including India," added Vincent Smith, head of Mintek's Milling Control Group
Tega are specialists in the development, design and manufacture of materials handling equipment, screens and screen decks, mill liners and lifters and hydro cyclones. In addition, Tega offer their clients a design, optimization and continual improvement service. Tega have installed their products in India, USA, UK, Holland, Germany, Ghana, Zambia, South Africa, Russia, Indonesia, Malaysia, Australia, Canada, Sweden and France.
CIL eyes mining in Africa
Coal India Ltd CIL is examining some coking coal mining blocks in Africa. A team from CIL will shortly visit Africa for holding discussions in this regard. Countries on CIL's scanner are Mozambique, South Africa and Zimbabwe.
CIL has formulated a three point strategy for spearheading its overseas mining efforts. In the short term, it might opt for a share in running mining ventures abroad both in coking and low ash non-coking coal. In the medium term it would like greenfield projects for which it was open to striking joint venture deals and in the long term it wanted to go independently.
Indicating that Mozambique might be the first country to be checked out, sources said that CIL was keen to form a joint venture with public sector Water and Power Consultancy Services WAPCOS. The team will also go to South Africa.
CIL was keen to start its overseas mining foray with coking coal, sources said that this was because India did not have adequate reserves of coking coal. If CIL can acquire and operate these mines at a lower cost, it will contain coking coal imports.
CIL team was also looking at Australia, although the blocks there were already distributed. So, a joint venture would have to be formed with an existing party. Some progress had been made in this respect and a round of discussion had been held, sources said.
Visakhapatnam Port records 13.4% growth in H1
Visakhapatnam Port Trust VPT has, during April - September 2005-06 has handled 26.558 million tonnes of cargo recording an increase of 13.4% over l 23.429 million tonnes during April - September 2004-05. In addition Ports Visakhapatnam Container Terminal VCT registered a throughput of 24,417 TEUs registering 35% increase.
VPT has improved its performance in bulk cargo segments such as iron ore, coking coal and POL due to increased imports & exports
The Port authorities are confident of achieving the Union Ministry of Shippings 55.15 million tonnes target for 2005-06 as against 50.15 million tonnes during 2004-05
IOC & PII to bid for Kenya oil pipeline
Indian Oil Corp IOC is preparing to bid to build a 320km pipeline that will take oil products from Kenya to Uganda. Besides Indian Oil, a Mumbai based consortium of eight energy and construction majors named Petroleum India International PII is among those chosen to submit bids for the build own operate transfer project between the Kenyan port of Mombasa and Eldoret in Uganda.
The project comprises construction of a 320km pipeline to Ugandas capital Kampala as an extension of the existing pipeline up to Eldoret to take petroleum products into Uganda to serve domestic markets and beyond.
The Kenyan and Ugandan governments would have 24.5% stake in the project with the private sector holding majority stake of at least 5%. The process of selecting a private investment partner is expected to be completed by the year end, with the pipeline targeted for commissioning by August 2007.
GAIL to appeal against ruling on transportation charges tussle with ESSAR
GAIL (India) Ltd has said that it will challenge the verdict given by the single judge bench of the Gujarat High Court that upheld Essar Steel's contention that GAIL was not entitled to levy transportation charges on gas supplied from a landfall point at Hazira.
GAIL said in a release that it planned to appeal before the division bench of the Gujarat High Court for non fulfillment of contractual obligations relating to transportation of gas through its HBJ pipeline.
New Mangalore port seeks Govt nod for expansion
Anticipating large volume of cargoes such as iron ore, coal and POL (petroleum, oil and lubricants) crude and products in the next 10 years, the New Mangalore Port Trust NMPT has planned various developmental projects.
NMPT Chairman Mr P Tamilvanan, told press that the port wants to provide bunkering facility to ships calling at the port and also passing through the international sea route in addition to dry docking facility for ocean going vessels. It is also proposed to deepen the channel and lagoon area to 17-metre depth to cater for future growth of vessel size.
The dredging in front of the newly constructed multipurpose deep-draft berth will be completed by March 2006. After the commissioning of this berth, the port will be able to handle vessels up to 14-metre draft for general cargo, he added.
CAG raps Meghalaya for lower coal royalty
The Comptroller and Auditor General CAG of India has rapped the Meghalaya government for short realization of royalty of coal worth over Rs 18 crore due to delay in implementing the revised rate prescribed by the Centre.
The Union Coal ministry enhanced the rate of royalty on mine coal from Rs 120 to Rs 165 per mt effective from August 16, 2002. However, the Meghalaya government's Mining and Geology department notified the applicability of the revised rates within the state with effect from June two, 2003 which led to short realization of Rs 18.56 crore oncoal
State government has reasoned that the delay was due to late receipt of the Centers order of August 16, 2002, pressure from various trade organizations and strike of the truck owners
Raspadskaya managers disagree to Evraz plans for buy out
It appears the plans of Evraz Group on getting majority stake in Raspadskaya and improving capitalization by this move before LSE placement have been messed up. Managers of Raspadskaya, which is the biggest producer of coke coal in Russia, announced they are not willing to dispose of their stocks and may buy out the stake of Evraz in the mine.
According to Mr Alexander Vagin, who chairs Raspadskaya BOD, neither he nor his partner will transfer control over the mine to Evraz Group, which is willing to buy out around 2 percent in the enterprise from managers. Minors desire to become the majority holder doesnt surprise me, Mr Vagin said. If Evraz is not satisfied with the policy of majority, the companys management is ready to acquire the stake of Evraz Group to re sell it to a more loyal investor.
Corber Enterprises Ltd and Toneron Holding Ltd, 50% each owned by Evraz Group and the mines management, are the holders of record for 91.5 percent in Raspadskaya. In addition, Evraz has 2.1% in direct ownership. Mr Alexander Vagin and Mr Gennady Kozoy, the BOD chairman and GD at Raspadskaya Coal Co respectively, control 4.5% resulting in the aggregate stake of the management at 50.2%, while Evraz controls only 47.8%.
Evraz Group needs the 50% plus a stock in Raspadskaya to enter the company into consolidated accounting report of Evraz Group to increase capitalization, which is of particular importance now in view of the 17% placement of Evraz stocks on LSE.
Evraz Group is the coal major in Russia due to its share holding in two of the biggest coal companies Raspadskaya and Yuzhkuzbassugol
CSC chairman Mr Lin to step down due to bonus issues
China Steel Corp CSC chairman Mr Lin Wen-yuan decided not to surrender the company stock bonus but will donate the money to charitable organizations and resign as the top executive of CSC. Breaking his long silence on the controversial issue, Mr Lin held a press conference yesterday to announce the moves, although he has won strong support from President Chen Shui-bian. Mr Lin said he will submit his resignation next and will not accept any persuasion for him to stay on the job.
Mr Lin said that he never broke any regulations or takes any illegal money. During the past three years, Lin said, he has injected CSC with brand new management ideas and systems to allow the privatized state enterprise to continue posting strong earnings.
Chinese experts differ on steel scenario
Chinese experts are widely divided as to whether the current iron and steel production capacity is too much and how the market will emerge
Mr Qi Xiangdong, deputy secretary general of the China Iron and Steel Industry Association said that not many change have taken place in the iron and steel supply and demand situation in China. The factors that have caused a slight fall in the prices are complicated, he said. Citing the 19% growth in steel consumption in the first eight months, he said that the home iron and steel production only increased by 19% if the import substitutes are deducted. He backed up his view by the following facts
1. The steel inventories are normal and some places are even short of supply
2. Production and sales are normal, with the sales ratio reaching 98.17% in the first eight months
3. Price fall is smaller than in the American and European markets
4. Of the 68 large and midsize steel enterprises covered by statistics, only five suffered from losses, 7% of the total, and the goods payment collection reached 99.73%, 4.11 percentage points higher than in the same period of last year.
5. China imported 17.5 million tons of steel in the first eight months of this year, 4.65 million tons less than that in the same 2004 period; but it exported 14.44 million tons, 7.12 million tons more than in the same 2004 period.
6. The export price of steel averaged US$642.95 per ton as against US$572.28 per ton in the same 2004 period.
But Mr Wu Xichun, former president and current consultant of the Association, took exception with the view, saying that the six major indicators cannot cover up the realistic crisis. He said that steel oversupply is becoming more and more serious. He said that China was a pure importer of steel in the first eight months and export dropped by 1.33 million tons in August, 870,000 tons less than in June and 1.4 million tons less than in the same month of last year.
The drop in export has brought greater pressure on the home market, said Mr Fu Luolong from the United Securities. Mr Wu contended that if the home output of steel drops in the remaining few months of this year, there is still hope for the steel market. Otherwise, the price will continue to drop. He said that China should take steps to curtail production, further reduce import and maintain property export and eliminate backward production capacity.
But Zhu Libin from the Institute of Shenyin Wanguo Securities predict that the steel price will continue to drop, saying that, although steel output in the recent three months slowed, it has still outgrown consumption.
Anglo focuses on iron
Restructured Kumba Resources, focusing on iron ore, would provide a good base from which Anglo American could build its iron ore assets further, Kumba CEO Con Mr Fauconnier said. The global resources group has been widely expected to restructure, unlocking some of the value in its unlisted assets and the Kumba-Newco restructuring is driven mainly by Anglo American's desire to increase its exposure to iron ore
New Kumba Iron Ore will house Kumba Resources' South African iron ore assets in an entity called Sishen Iron Ore Company, in which Anglo will have a 52.4% direct and indirect stake.
Newco, in which Anglo will have a 17% stake, will combine Kumba's existing coal assets with those of black empowerment company Eyesizwe Mining. Newco will hold a 20% stake in Sishen Iron Ore and will also have an option to buy heavy minerals company Namakwa Sands and 26% of zinc assets Black Mountain and Gamsberg.
Anglo Ferrous and Industries Division CEO Philip Baum said there were exciting opportunities for growth for Kumba Iron Ore, which grew out of the upgrading of rail links in the Northern Cape and the Sishen expansion project. Together with the Sishen South project, this would increase Kumba's production to 45-million tons a year by 2008, a good base from which it could grow further.
Chinese iron ore import prices update
The CIF prices of Indian and Australian iron ore imported through the Tianjin Port on October 14 2005 are $95.42 for 65% Fe of Indian origin, $81.78-83.02 for 63.5% Fe of Indian origin and $ 61.96 for 58% Australian Concentrate
The CIF prices of Indian iron ore imported through the Zhenjiang Port on October 14 2005 is reported to be $66.91 for 60% Fe
The CIF prices of Indian iron ore imported through the Lianyungang Port on October 14 2005 is reported to be $79.31 for 63% Fe and $80.35 for 63.5% Fe
The CIF prices of Indian and Australian iron ore imported through the Rizhao Port on October 14 2005 are $65.68 for 59% Fe of Indian origin, $80.55 for 63.5% Fe of Indian origin, $78.07-79.31 for 63% Fe of Indian origin, and $ 66.91 for 58% Fe of Australian origin
The CIF prices of Indian iron ore imported through the Beilun Port on October 14 2005 is reported to be $81.78 for 63.5% Fe
The CIF prices of Indian iron ore imported through the Lanshan Port on October 14 2005 is reported to be $76.91 for 60% Fe and $80.55 for 63.5% Fe
Venezuela's government studying investment bids for steel sector
According to the government news service ABN, Venezuela's Basic Industries & Mining Ministry MIBAM is mulling investment proposals in the steel sector submitted by Indian and Chinese companies. India's Essar and China's MMC have expressed interest in forming strategic alliances for the installation of a steelmaker announced by President Hugo Chavez in which the Venezuelan state would hold a majority stake.
The Indian company also could install a plant to produce rails and other structures, the statement said, without detailing investment figures.
The state steel company in the southeastern Guayana region announced by Chavez requires US$1 billion in investments and will supply specialty steel need for the construction of bridges, ports and airports. To build the project the government foresees strategic associations with foreign investors to ensure technology transfers and technical assistance.
Chinas coal production down 30% in September
The first impacts of Chinas State Administration of Work Safetys announcement that it would suspend production at 8000 coal mines began to show in September as domestic coal production declined 30 percent month-on-month.
In June 2005, the State Administration of Work Safety released a list of 8648 coal mines which will have their production suspended so that inspections can be carried out. On September 26, the head of the State Administration of Work Safety, Mr. Li Yizhong, indicated that 8000 coal mines should be suspended for checkups no later than the end of 2005.
According to the latest statistics from China Coal Transport and Distribution Association (CCTD), coal output for the first nine months of the year was 1.43 billion tons. September alone accounted for only 125 million tons, a noticeable decline from June (187 million), July (179 million) and August (186 million).
Some experts predict that coal production capacity in 2005 will decrease 50 to 70 million tons, with a further reduction of 100 million tons in 2006. Chinas demand for coal in 2005 will be around 2 billion tons, which means that the decreased volume represents anywhere from 2.5 to 5 percent of total demand. Therefore, the coal market is likely to have a short supply.
Since late September, coal prices in northeastern China have been on the rise. Market prices of some coal varieties in the Shaanxi Yulin region rose to RMB 300/ton ($37).
Injection moulding In Steel
Metal Injection Moulding MIM is a relatively new manufacturing technique combining the well established technologies of powder metallurgy and injection moulding.
It makes possible the production of high integrity steel parts in complex shapes, yielding close tolerances, a smooth surface finish and finely reproduced detail. Components can be made in a wide range of metals including low alloy steels, stainless steels, tool steels, magnetic alloys, kovar and invar.
The MIM process does not compete with plastic injection moulding, but complements it, where the high properties of steels are required. Whilst the size range of MIM parts is typically 275 mm, and the cost of comparable parts is higher than for plastics, MIM parts can offer substantial cost savings compared with many other metal manufacturing techniques.
The process operated by Metal Injection Mouldings of Altrincham, Cheshire, starts with an extremely fine metal powder being mixed with a special binder to make pellets, which are injected into a mould to form the required shape. The binder is then removed and the parts are sintered to produce high density metal components, with the superior mechanical properties of higher strength metals compared with either plastic injection mouldings or pressure die castings.
Forzando new coal mine to boost Total Coal SAs output
Total Coal SA yesterday broke ground on its first R 210 million green field Forzando South coal mine project in South Africa, which will produce about 800000 tons of coal by August next year, mainly for export. The Forzando South coal mine's production target is 1.4 million tons within five years.
The expansion will boost Total Coal's annual production in SA to about 6 million tons of coal by 2008. The group produces 4 million tons of coal for export a year, as well as 1-million tons of metallurgical coal for the inland market from its Dorstfontein and Forzando North mines and its joint venture interest in the Arthur Taylor Colliery. The group is also looking at two other new coal projects: Boschmanskop and Forzando East.
Ajaokuta Steel workers protest
The aggrieved disengaged workers of Ajaokuta Steel Company Limited have threatened to blow up the multi billion naira company if their entitlements were not paid before the end of this month.
Speaking at the peaceful protest embarked upon at Ajaokuta on Friday, the leader of the disengaged workers, Mr Amenger Awen, also noted that no fewer than 45 disengaged workers have died so far. Hundreds of the retired workers trooped out to vent their anger over the non payment of their entitlement due ten months ago.
About 1,517 employees were laid off in December while another 47 were laid off in June this year following the take over of the company, by Global Infrastructure Nigeria Limited.
The leader of the sacked workers explained that the approved N3 billion by the president in June had at the time of embarking on the demonstration not been released by the Ministry of Power and Steel stressing that all efforts at making the ministry to facilitate the release of the fund were rebuffed.
They further claimed that the N300 million released to the company for the payment of their pension arrears were denied by the Minister of Power and Steel, adding that N19 million out of the money was used to pay the money owed the Sungas Limited that initially took over the company.
Mr Hoffner to be CEO of Paragon Technology
Mr Joel L Hoffner, a former Bethlehem Steel manager, has been appointed president and CEO of Paragon Technologies in Forks Township, the maker of conveyor systems
The move, effective January 1, comes as Mr Leonard S Yurkovic retires from the positions. Mr Yurkovic, 67, had two stints leading the company 20 years that ended in 1999 and two years after replacing former President Mr Bill Johnson in 2003.
The company, founded in 1958 is an engineering company that employs subcontractors to make the automated conveyor systems.
