October, 06 2005
Tata Steel seen in talks to acquire co in Thailand
Tata Steel is in talks to buy a construction grade steel company in Thailand to boost its presence in Southeast Asia. Sources close to the situation say Tata Steel is looking at two possibilities Tusco and Millennium Steel, to boost its wire rod steel making capacities.
Negotiations are still on and no final decision has been taken yet, sources said. Incidentally, this is the second time that Tata Steel is trying to buy state owned Tusco as it had earlier sought to buy the state-owned Tusco in the late 1990s. Millennium Steel is a unit of one of Thailands biggest industrial groups, Siam Cement, which owns about 45.6% in it.
Both the Thai companies make wire rods, a traditional construction grade steel product used in buildings. Its a growing steel market in Southeast Asia and the ideal target would be a unit which has at least 2mt of annual capacity, sources said.
While the financial details of the planned acquisition are yet to be finalised, it is estimated that a steel plant of about 2mt capacity would cost anywhere between Rs 1,000 crore to Rs 1,500 crore. The acquisition is likely to be done through NatSteel, the source said.
Tata Steel bought NatSteels steel operations in 04 for $486.4m. The Singaporean company makes construction grade steel products for residential and commercial buildings, bridges and roads. It is one of Asias leading steel makers with a presence in China, Thailand, Vietnam, Malaysia, the Philippines and Australia.
Mittal Steel to sign Jharkhand plant deal on Saturday
Mittal Steel, the world's top steel maker, will sign a deal on Saturday to build a 12 million tonne steel plant along with iron ore mining facilities in Jharkhand with an investment of 450 billion rupees. The deal will be signed by the state chief minister Mr Arjun Munda, and the Mittal Steel CEO Mr LN Mittal.
Mr SK Satapathy, the Jharkhands industry secretary, told press that "The project should come on stream in 48 to 54 months". Mittal Steel will also get a committed supply of 600 million tonnes of iron ore from the state's Chiriya mines for 30 years and the mining lease will be renewable for another 20 years", he added.
Mittal Steel's COO Mr Malay Mukherjee had earlier announced that they would sign the mining and plant deal this week. "There is no question of ore swapping or export. The plant is for domestic market," he is reported to have said
Posco deal survives Sonia hiccup
It is reported that the Centre has decided to back Orissa's agreement with the South Korean steel major. The deal came under a cloud, with the Sonia Gandhi-headed National Advisory Council making an intervention to raise questions about the wisdom of the agreement for extracting iron ore and the interests it would serve.
The Union steel ministry, which had received a note from NAC expressing doubts about the benefits of the Posco deal, directed it to the Orissa government. Sonia herself told some Left MPs that she had raised objections to the deal, keeping in view the concern over its impact.
However, the Centre on Wednesday made it clear it would not be swayed by NGO activism to stymie a deal promising massive flow of foreign exchange.
In fact, in certain government quarters, a palpable anxiety was visible about the wrong message going out with NAC seeking to stall the Posco project. For an economically backward Orissa, the Posco agreement brought the first whiff of foreign investment in a long time.
"If questions have been raised about the Posco deal, it is the government's responsibility to answer them, said a source close to the PM.
Making no bones about the backing of the top echelons of government for Posco's entry into Orissa, the source said the Centre had backed the deal to the hilt. "That's why the industry ministry cleared it, he said.
Usha Martin starts iron ore mining
Usha Martin Limited, leading specialty steel producer and wire rope manufacturer, has started its iron ore mining operation from today in a mine situated in Barajamda, 160 kilometers from the company's steel plant located at Jamshedpur, having reserves of high grade iron ore suitable for both blast furnace and DRI
This is the first mine allocated in the newly formed state of Jharkhand.
The ore produced from this mine would be used by the Company at its Steel Plant in Jamshedpur having present annual requirement of sized ore of more than half a million tonne per annum. In line with the expansion projects undertaken, the captive utilization of sized iron ore would go up to about 750,000 tonnes requiring more than one million tonne of mined ore.
The Company has set up captive railway siding and crushing screening plant at the Steel Plant to accept the iron ore and process it to suit the blast furnace and DRI requirement.
RINL posts 11% half yearly growth
RINLs Visakhapatnam Steel Plant VSP has posted a modest eleven per cent growth in its total sales and a four per cent growth in its production of liquid and steel saleable during the first half ending September 30.
A Company release said today that the total sales were at Rs 3,737 crore, a growth of 11 per cent over the corresponding period last year (Rs 3,358 crore). However, this was the highest sale achieved for the first half of any year. This included a domestic sale of Rs 3,530 crore (11 per cent growth) and Rs 139 crore from export (46 per cent growth).
The production of hot metal was at 2.05 million tonnes, a growth of 13 per cent over previous year. 1.8 million tonnes of liquid steel and 1.6 million tonnes of saleble steel, both four percent higher compared to corresponding period, last year.
The slowdown in its growth was mainly due to increasing input cost and constraints faced in the supply of its main raw materials, iron-ore and cooking coal. Lack of captive iron-ore mines and delay in striking joint ventures with foreign cooking coal companies are some other reasons for its slow growth.
SAIL moves CLB on IISCO merger
SAIL has filed an application with the Company Law Board CLB last week to legally finalize the merger of Indian Iron and Steel Company IISCO with it and for transfers of IISCOs assets to SAIL. Announcing this, SAIL Chairman, Mr VS Jain, said: We filed an application last week with CLB and the merger would be complete in the next 2-3 months.
The Union cabinet had on 16 June cleared the decks for merger of the two Public Sector units, authorizing the steel ministry to initiate the process after getting approval from the Board of Industrial and Financial Reconstruction (BIFR).
DPL looking towards steel sector
State owned Durgapur Projects Limited DPL, which produces power and coke, has conceived an idea of setting up an integrated steel plant of its own. The idea, according to the senior officials, has been precipitated by the recurring crisis in the domestic marketing of coke.
DPL, an integrated plant established in 1960s, is equipped with a power generation plant, a water works and a coke oven plant. The coke oven plant was set up to cater to the need of the steel industry, mainly the Durgapur Steel Plant and the Alloy Steels Plant.
The coke oven plant of DPL had to face a severe threat due to the competitive market scenario. DPL has been lacking a marketing strategy because of which it could not achieve the desired progress for decades. The coke oven plant has been lying idle.
But the same coke-oven plant made a magical recovery by registering a record performance on 29 September by off loading 105 ovens pushing in a single day and producing 2835 tones of coke The average oven pushing of the plant is 80. The coke oven plant has got a lone buyer, the Durgapur Steel Plant of SAIL which is using DPLs coke batteries on tolling basis.
Mr SP Dutta Presently MD of DPL said that We are trying hard to get the proposed joint venture with the SAIL matured for the betterment of the coke oven Plant. The Sail plants are the lone buyers and DPL is incurring cost of the coke conversion charge to ensure its fate. For that we are putting extreme hope on the joint venture.
It is reported that if the joint venture proposal failed the plant would have to set up a mini integrated steel plant with blast furnace, arc furnace and rolling mill for the uninterrupted consumption of cokes produced by DPL. The DPL itself will bear the cost of setting up the steel plant exploiting its internal fund resources
Adhunik Metaliks to invest Rs 450 cr in Rourkela plant
Adhunik Metaliks has decided to invest Rs 450 crore to manufacture high value-added auto grade steels at its manufacturing plant at Rourkela. Earlier, the company had announced an expansion plan with a capital outlay of Rs 250 crore.
Our plan is to set up an integrated steel plant with complete backward and forward linkages. We will be finally involved right from iron ore and coal mining to manufacturing a range of steel products, including auto grade steel said Mr Manoj Agarwal, director, Adhunik Metaliks. He added that the company had planned to implement the Adhunik Metaliks project in three phases - the first phase is on stream, the second phase expansion would be implemented shortly. The entire project is expected to be completed by 2008-09.
The company produces high quality sponge iron, pig iron, special grade high carbon and low carbon steel billets and different grades of alloy steel billets.
Ukraine allows Arcelor to buy Industrial Group shares
Ukraine's anti trust committee has allowed Arcelor to buy over 50 percent of shares in Industrial Group, which is a managing company for Donbass Industrial Union IUD having large holdings in the metals industry in Ukraine
The government's approval comes less than three weeks before a repeat auction for 93 percent of Kryvorizhstal, Ukraine's biggest steel maker, where Arcelor could be one of the bidders. And with deal, Arcelor would be having advantage over other bidders
Industrial Group participated in the first auction for Kryvorizhstal in 2004, but lost out to Industrial Metallurgical Union
US steel prices climb
Steel prices are climbing again as the costs of energy, raw materials and transportation surge in an unstable business climate. Local sources said that the price of hot band has risen to about $610 a ton, up $120 from only two months ago. A $40 per ton increase is expected in November
Steel sheet, the most common product used in cars and appliances, rose to $500 a ton in September from $435 in August, according to Purchasing Magazine, a pricing publication.
A decline in steel imports, coupled with the aftermath of Hurricane Katrina, could put supplies of some materials at risk, said Mr Bill Gaskin, president of Precision Metalforming Association, a Cleveland trade group with Wisconsin companies in its membership. U.S. manufacturers rely on foreign steel for much of their needs.
Imports of some steel products are down 50% from five years ago, Gaskin said, which doesn't bode well for supplies and prices. "The overall decline in steel imports from levels a year ago could contribute to greater supply shortages and price fluctuation," Gaskin said. "What we do know is that inventories in steel service centers have been declining and are now at or below normal levels, so a further decline in imported steel could be a concern if rebuilding from the hurricane suddenly boosts demand."
Katrina resulted in some "panic buying" of steel that probably made things worse, according to Gaskin. "But prices are definitely going up," he said. "We had a meeting with our members last week, and they expect higher prices."
For steelmakers, reduced supplies of liquid hydrogen are pushing up production costs. They use hydrogen for applying a zinc coating on steel products in a process called galvanizing. They also use it to remove rust in a process called annealing.
Oversupply in China leads to steel price slide
A Chinese steel expert attributed the lowering steel price, which has been on decline since last April, to insufficient demand and excessive market supply. "Domestic steel output grows, so does the demand, but the output increases even faster," said Mr Wu Xichun, former chief and now an advisor of the China Steel Industry Association.
"The supply of steel surpassed demand two months ago and the supply are still increasing," he said. Mr Wu blamed disorderly competitions among steel plants in the country for the oversupply.
In August this year, the daily steel output in China reached 982,500 tons, or 358 million tons for a year, Mr Wu said.
China was a net steel exporter before last July, but since then, the country became a net importer. The country imported 110,000 tons of steel and billets in July and the figure shot up to 580,000 tons in August.
Mr Wu estimates China's steel import at 26 million tons for entire 2005 and the steel output at 344 million tons, 70 million tons more than last year.
Forecast for stainless steel production by ISSF
The International Stainless Steel Forum ISSF has released a new forecast for the global stainless crude steel production in 2005 and 2006. The global forecast for 2005 is for an increase of 1.8%. This will mean production of 25 million tons of stainless crude steel in 2005.
Factors affecting the slowdown in the growth of the production, which were discussed at the ISSF Board of Directors meeting in Seoul on 4 October include high stainless prices based on exceptional high raw materials costs that obliged stainless steel fabricators and stockholders to reduce significantly their stocks of stainless steel products in 2005 and that the stainless steel market was over supplied in late 2004 and early 2005.
These factors have led to a decrease in demand for stainless steel, especially in highly developed economies. As a result, many stainless steel mills around the world have announced production cuts.
In light of these developments, ISSF has reviewed its forecast of stainless steel production in 2005 and 2006. The global forecast for 2005 is for an increase of 1.8% to 25 million tons of stainless crude steel.
Only Asia has shown 7.4% positive growth in stainless steel production in 2005 the forecast for the region has been increased by 0.1 million tonnes based on the major expansion of stainless steel production in China. It is expected that Asia will account for more than the half of the stainless steel produced in the world in 2005.
All other regions will show a significant drop in stainless steel production. The most affected region is Western Europe/Africa where a decrease of 4.5% is expected. ISSF forecasts that production in The Americas will be reduced by 2.5% compared to 2004. Production in the Central and Eastern Europe region will decrease by 23.1% compared to 2004.
During 2006, ISSF expects the underlying demand for stainless steel products to rise by around 5%. However, this may depend on the prices for raw materials. If prices increase further, demand may be affected. ISSF expects that stocks of stainless steel at stockholders and fabricators will be low by the end of the 2005. ISSF forecasts that stainless steel production will increase by around 6% during 2006 to re-fill stocks where necessary. Total production in 2006 is expected to be 26.5 million tonnes for the year.
Asia, driven by China, will again take the lead. Production is expected to rise by 6.6% to 13.8 million tonnes in 2006. The Western Europe/Africa region will compensate for lost production in 2004 and 2005. Production is expected to increase by 5.6% to 9.5 million tonnes in the region. The Americas will also increase their production by 3.1% to nearly 3 million tonnes. Central and Eastern Europe will show major growth but will remain of minor importance due to a lack of local capacity.
China finds iron ore market tightening
In another month or so, the much-anticipated iron ore price negotiations will begin. A lot of posturing has been seen from both the miners on the supply side, and the steel-makers on the demand side. And an awful lot of speculation has surrounded the potential price outcome.
As its inventories begin to fall, the worlds biggest consumer, China, has been attempting to secure long term supply contracts with India, but with little success. Credit Suisse reports smaller Indian suppliers are not keen to be locked into such contracts, preferring to take their chances on the presently lucrative spot market. The larger, state based suppliers would come to the party, but they havent got any iron ore to spare.
Credit Suisse notes Chinese steel-makers are merely trying to lock in prices in an attempt to avoid the volatility of the rampant spot market. The fact they been unable to do so serve to highlight the present tightness in the iron ore market. The smaller producers in India are not even in a position to swap volume for price, because their longer term sustainability is uncertain.
European steel-makers have attempted to play down a tight demand/supply situation, but as Credit Suisse suggests, this is most likely a posturing strategy as well. In the mean time, the Chinese Iron & Steel Association has stated that it expects iron ore imports could total 330Mt in 2006, which is 20Mt or 6% above Credit Suisses current estimate.
Credit Suisse further reports Brazilian iron ore giant CVRD has expectations of a 10-20% price increase. At this stage the analysts feel it is too early to draw much from CVRDs opinion, although it does fit in with their forecast 15% price rise in 2006.
In the event that these numbers reflect the expectations of Chinese steel mills, Credit Suisse suggests a floor has at least been set for the negotiations.
Erdemirs auction details
Turkey's Armed Forces pension fund, Ordu Yardımlaşma Kurumu OYAKs bid of $2.770 billion is around 83 percent above the market capitalization of Erdemir making its fill worth about $6 billion. Under the Erdemir tender rule, the highest bidder would also have to buy the 3.17 percent of Erdemir shares held by Turkiye Kalkınma Bankası, an investment bank. Therefore, Oyak would have to pay $2.960 billion for a 49.35 stake in Erdemir.
The auction started at a $2.1 billion base price after the first written bidding phase and there was no elimination of the six bidders.
In the second round of the written bidding phase, the highest price was $2.45 billion, with the Nurol-Limak-altın-Alkol Pazarlama Ortak Girişim Grubu and Severstal being eliminated.
In the next elimination stage, again in written bids, the highest price was $2.65 billion and this time Mittal Steel was ousted.
Among the four that remained at the open bargaining stage, Arcelor decided to withdraw after it requested a five minute timeout.
When the bids among the other three rose to $2.720, NLMK-Open Joint Stock Company Novolipetsk Iron and Steel of the Russian Federation also decided to quit, leaving two Turkish participants, OYAK and Ereğli joint initiative, remaining in the open bidding stage.
After OYAK bid $2.770, the Ereğli joint initiative also called it a day and Oyak took home the prize.
Carpenter announces energy surcharge
Carpenter Technology Corporation has announced that that its Specialty Alloys Operations SAO unit is implementing energy surcharge on all orders shipped after October 15. The surcharge will apply to all SAO stainless and specialty alloy products and reflects dramatic increases in natural gas prices.
Carpenter will calculate its monthly energy surcharge, that only reflects natural gas at this time, by subtracting the base rate of $6.00 per thousand cubic feet (MCF) of natural gas from the monthly closing NYMEX settlement price, as reported in Platts Gas Daily. The calculation further considers the amount of natural gas used to produce various product forms by applying a multiplying factor. Carpenter said the increase is necessary due to escalating energy costs.
Carpenter Technology, based in Wyomissing, Pa., is leading manufacturer and distributor of specialty alloys
Talley Metals, a subsidiary of Carpenter Technology Corporation has also announced that it is instituting an energy surcharge on all orders shipped after October 15, 2005. Talley Metals sells stainless steel long products, as well as standard precipitation-hardening grades, to U.S. metals distributors.
Chinas increase of flat products capacity pressuring prices
Chinas increasing domestic steel capacity is undermining steel prices in the flat products segment, steel-watcher MEPS reports. The trend has enveloped much of Asia, with Japan now looking to cut back output and South Korea and Taiwan following suit.
Oversupply across the region is likely to lead to further price reductions over the next few months for all commercial grades of steel. MEPS reports cuts in production are anticipated in the final quarter in Japan, South Korea and Taiwan which should signal an attempt to balance supply and demand by the end of the year.
MEPS is forecasting a fall in transaction prices over the next three months. A modest price rise is anticipated during the first half of next year on the assumption that the Chinese will not flood the region with their excess supply but forward some of it to the EU and North America.
In the long products category average prices actually went up over the past two months due largely to stronger international scrap prices. The increases in raw material costs in Asia have been less dramatic than in North America and the EU, says MEPS. Nevertheless, excess supply is likely to be a key factor in the pricing scene over the next six months. With the exception of China, demand is quite mediocre in the building and construction segments across the region. MEPS believes this should be followed by a revival after the Chinese New Year if the mills are able to export some of their oversupply to the US market to meet the anticipated upturn in demand for construction in that country.
Taiwanese and Japanese demand may also be improved at that time, says MEPS, but in the background there is always the fear of too much supply from the Chinese mills dampening the prospects for a price revival in the region.
Minnesota Steel revises plans to produce slabs instead of HRC
The first Iron Range steelmaking plant will manufacture a niche product not produced elsewhere in the United States, according to a revised plan. Minnesota Steel would produce steel slabs rather than hot-rolled coil, as first proposed, said Mr John Elmore, Minnesota Steel president and CEO.
Slabs produced at a Minnesota Steel facility would be about 8 to 10 inches thick, up to 80 inches wide and about30 feet long. Initial production would be 1.5 million tons per year.
Producing steel slabs rather than coil would reduce the project's capital cost, shorten a learning curve in operating the plant and take advantage of strong market demand for slabs, Mr Elmore said. And Minnesota Steel would be able to supply a niche market, currently only served by foreign steel slab mills.
In 2007, foreign steel slab producers are expected to export about 7 million tons into the United States Mr Elmore said.
If environmental permitting and financing are successful, construction of a Minnesota Steel facility would begin in 2007 with production targeted to begin in 2009 at an initial construction costs of about $1.3 billion. Adding a second steel slab line or hot rolled coil facility would cost $200 million to $300 million.
Minnesota Steel's 1.4 billion ton iron ore reserve, located at the site of the former Butler Taconite Co. near Nashwauk, would support 100 years of steelmaking. Because iron ore would be mined and processed at the same location, steel could be produced at low cost, according to Minnesota Steel.
Coal mine flooding in Sichuan kills 10 and 18 missing
Ten miners were killed and 18 others were reported missing during a coal mine flooding, which took place in southwest China's Sichuan Province around 9 PM on Tuesday.
The flooding occurred at an uphill driving face beneath the Longtan Coal Mine, which is situated at Xiaojing Township in Guang'an City, according to the Sichuan Provincial Work Safety Office.
The coal mine, which is administered by Guang'an Energy Group Co. Ltd. of Sichuan Provincial Coal Industry Corporation, was built in June 2003 with a designed annual production capacity of 550,000 tons.
By press time, rescue operation is going on. The cause of the accident is under investigation.
Tarpon Investments offers US$440mn for Acesita
Tarpon Investments has submitted an offer for a controlling stake in Brazilian specialty steelmaker Acesita, according to a letter from Tarpon posted on the steel makers website. Tarpon has offered to spend 45 reais per share of Acesita in a 1bn-real (US$440mn) deal for shares owned by Petros/Previ funds and Usinor in Acesita. Usinor is one of the three companies that merged to create European steel group Arcelor.
Acesita did not respond to requests for comment on the offer.
The Tarpon deal is for 78% of voting right shares in Acesita. The deal is valid for 15 days and a cash payment would be provided 30 days after the funds agree to the sale. Tarpon has the option to withdraw or extend the offer deadline, according to the notice.
The source said Acesita is a solid company when asked why Tarpon would move for control of the steelmaker. Tarpon decided on the asking price after conducting an economic study, according to the source.
Luxembourg-based steelmaker Arcelor has offered to buy a 25% voting share in Acesita on top of its 38.9% voting stake from the pension funds for 42.28 reais per share, or 260mn reais total.
Protesters shut down GSHLs Delta Steel in Nigeria
About 2 000 protesters, many of whom lost their jobs when Global Steel Holding Limited acquired 80% share in the moribund Delta Steel Company in February, previously fully owned by the Nigerian state, yesterday blockaded the Nigerian steel plant. Delta Steel used to have around 4 000 workers and 1 300 had lost their jobs in the sell off.
The protest which started in the early hours of Tuesday by wives of the retirees and their working female counterpart was joined yesterday by all the workers of the company. The protesting workers carried placards some of which read: Why did you disengage staff when you know there is no money to pay off; Terminal benefits is a right not a privilege, give us our right; If those disengaged are not paid, what is the guarantee that those working will be paid."
A spokesman for the Ministry of Power and Steel said the government had earmarked 3-billion naira to compensate workers who lost their jobs in the privatization of the steel sector, but the money had not been released yet. "It is in the process of going through the system. The people affected will receive their money," the spokesman said, adding that confusion had arisen because some workers were claiming severance packages even though they had kept their jobs.
Global Holdings paid $30-million for Delta Steel, one of dozens of industrial plants built by Nigeria's military rulers in the 1970s which fell into bankruptcy and disrepair due to mismanagement and corruption. Located near the oil hub of Warri in the southwestern Delta state, it has a two million ton per annum pelletization plant, a 1.4 million ton per annum DRI plant and a 1.8 million ton per annum electric arc furnace.
Delta Steel is the third major Nigerian steel venture for Ispat, which last year won the concession to run the nation's largest 1.3 million tonnes wire rod and light section steel mill at Ajaokuta and in January was given the concession to run its largest iron ore mine.
Election of new ISSF members in Seoul
The International Stainless Steel Forum ISSF has elected two new members and one new affiliated member at its meeting in Seoul. The new member companies are Baoshan Iron and Steel Company Limited, China and Changwon Specialty Steel, South Korea. The new affiliated member is Edelstahl-Vereinigung, Germany
ISSF now comprises 63 company and affiliated members in 23 countries. Jointly they produced 80% of all stainless steel manufactured in 2004. ISSF members are also members of IISI unless they choose otherwise.
ISSF Members are producers of stainless steel including integrated mills and rerollers. Affiliated members are national or regional stainless steel industry associations.
ISSF is a non profit research organization, which serves as the world forum on various aspects of the international stainless steel industry. Founded in 1996, ISSF has its own Secretary General, Board of Directors, Committees and budgets. ISSF is legally a part of the International Iron and Steel Institute. ISSF is based in Brussels, Belgium.
Ukraine uses 69% of EU steel quota
Ukrainian steel mills obtained licenses to ship 674,480 tonnes or 68.82% of the country's new 2005 quota for 980,000 tonnes of rolled steel to the European Union as of October 1, the Ukrainian Economics and European Integration Ministry said.
The EU set a minimum quota of 703,070 tonnes of steel for Ukraine this year, but said the quota might be relaxed at negotiations if Ukraine meets EU requirements.
Trade in steel products will be fully liberalized as soon as Ukraine joins the World Trade Organization (WTO).
MMK interested in investment in steel sector in Pakistan
Federal Minister for Industries, Production and Special Initiatives Mr Jahangir Khan Tareen has said that government of Pakistan would encourage foreign investment in steel manufacturing sector to meet present and future demand of steel and engineering industries while talking to a ten member Russian delegation representing MMK steel group
Minister said that there was a tremendous scope for the investment in steel sector due to rapid demand of steel products." As a rapid growth, the gap between supply and demand has widened which provide great opportunity for foreign entrepreneurs and investors in steel sector," he added. Minister maintained that government had chalked out a comprehensive strategy for the development of the steel and engineering sector. He said that one more steel mill should be established to meet the domestic needs of the steel and government would encourage the private sector in this regard.
Acknowledging an importance of the of steel sector in the development of the industries in the country, secretary Industries, production and Special Initiatives Mr Suleman Ghani said that government was encouraging private sector and privatization process of the Pakistan Steel Mills was underway. The procedure for bidding would be transparent and local and foreign investors would be welcomed in this regard.
The Russian delegation showed keen interest in the purchase of Pakistan Steel Mills and DG of MMK group Mr Rafaat S Pakhaupinov briefed the minister about their capability and experiences in steel sector. He expressed keen interest in the purchase of Pakistan Steel Mills with the aim to upgrade modernized the existing plant and its position, capacity and environment.
Taiwanese China Steel CEO refuses to reduce profit sharing
Mr Lin Wen-yuan, board chairman and CEO of the China Steel Corporation, has repeatedly refused to reduce profit-sharing to featherbed his job, labor union leaders charged yesterday. Mr Wu Hsun-tsai and Mr Wu Ching-pin, former and incumbent leaders of the China Steel Workers, said Lin turned down every call for a cut in his share of the profits.
Before Lin assumed office, the profit-sharing was limited to three percent of China Steel's net profit. He raised it to five percent. As the CEO, Lin can legally benefit from the profit-sharing. He was reported to have earned at least NT$40 million a year in preferred shares China Steel gave him under the profit-sharing scheme.
Western Prospector acquires coal projects in Mongolia
Canadian Western Prospector, along with advancing its Saddle Hills Uranium Project, has recently acquired exploration licenses within two coal districts in central and north eastern Mongolia, where exploration is now underway and drilling is planned.
Western Prospector has selected developed infrastructure and large-scale deposit size as the main parameters for acquiring prospective coal deposits. In this regard, a 5000-hectare exploration license that covers exploration potential for coal seams within the Baganuur Basin has been acquired. With acceptance of additional license applications currently filed, Western Prospector would hold approximately 20,000 hectares within the Baganuur Basin.
The Baganuur Basin hosts the largest operating open-pit coal mine in central Mongolia that produces and ships over 5.0 million tonnes annually, the majority of which supplies fuel for the coal-fired electrical generator plants in Mongolia's capital city of Ulaanbaatar. The Western Prospector license is located 4 kilometers from the operating mine.
Western Prospector has also acquired an approximate 7000-hectare coal license within the Choibalsan coal basin in eastern Mongolia. One operating open-pit coal mine in the basin provides fuel for a nearby electrical generating plant that distributes electrical power to the eastern Mongolia power grid.
Hillsborough may work with Anglo to find coal
Canadian coal miner Hillsborough Resources Ltd said on Wednesday that international coal company Anglo Coal may acquire a minority interest in it.
Hillsborough also said Anglo Coal, a unit of Anglo American Plc may form a joint venture with the company to explore and develop nine of its 11 metallurgical and coal properties in northeastern British Columbia.
Hillsborough said the transaction was subject to the negotiation of a definitive agreement and would require approval from both companies' boards of directors.
China determined to crack down on illegal coal mining
Chinas major coal-producing province of Shanxi has made a plan to shut down all illegal coal mines in its territory in the next three months, according to a notice released by Shanxi province government on September 20.
According to the notice, electric power supply, detonators which are necessary in mining process and coal transportation of illegal coal mines will be cut off from now on until they get the corresponding penalty and qualify for mining.
In the first half-year of 2005, more than 4000 coal mines without mining permit and eligible safety facilities were discovered in Shanxi. In the last five years, there are 45 big coal mine blasts with death toll over thousands happened in Shanxi due to illegal mining.
In the south coal-consuming Guangdong province, all its illegal coal mines have been closed down for near one month since the severe coal mine disaster in which 123 people died happened in Xingning city on August 7.
National illegal coal mine crackdown had been executed for many times in the previous years but the effect was just temporary and formal. This time it is different since it comes along in the context that State Council determines to eradicate the coal industry corruption.
Nation to hand out free coal mine safety handbook
China is requiring all collieries across the country to distribute free safety handbooks to coalmine workers by the end of this year. The National General Administration of Quality Supervision, Inspection and Quarantine has called on each coal mine to compile the booklets based on their own circumstances and update them with applicable information.
The agency says the handbook should detail the coalmine worker's rights and obligations, typical colliery disasters and corresponding measures when they occur. Hot lines for informing illegal behavior and hidden security vulnerabilities must be published with the books. Additionally, the compilation is required to include matching illustrations and should be concise and comprehensive.
TSRC signs deal with MHSB to extract iron ore
Malaysian TSR Capital Bhd TSRC has announced that its subsidiary company, Jalur Canggih Sdn Bhd JCSB, entered into a tenancy agreement with Megap Holdings Sdn Bhd MHSB to extract iron ore in Gurun, Kedah.
Under the agreement, MHSB is required to pay RM6mil in 10 monthly installments of RM600, 000. In return, it can extract 500,000 tonnes of iron ore. Any amount above the figure extracted will be charged at RM12 per tonne.
The agreement is expected to contribute positively to TSRC earnings and net tangible assets of the group in the 2005, 2006 and 2007 financial years.
BHP appoints new President Manganese
BHP Billiton announced today the appointment of Mr Peter Beaven as President Manganese based in Johannesburg with immediate effect. In this role Mr Beaven will be responsible for continuing the optimization and growth of BHP Billiton's Manganese business. BHP Billiton is the world's largest producer of high-grade manganese ore.
Mr Beaven moves into the role following two and half years as Chief Development Officer for the Carbon Steel Materials group based in Melbourne responsible for business development, strategy and project development for the company's iron ore, manganese and coking coal assets.
Prior to joining BHP Billiton Mr Beaven was an Executive Director with global investment bank UBS Warburg, playing a key role in the successful BHP Billiton merger in 2001.
For the year ended 30 June 2005 BHP Billiton's manganese business delivered US$571 million of earnings before interest and tax from operating assets of US$513 million.
BASF acquires coil coatings business from Rhenania
BASF Coatings has signed a contract to acquire the coil coatings business from Rhenania Coatings GmbH. This acquisition further extends BASFs position in the European coil coating market. Subject to the approval by the regulatory authorities, the transaction is expected to be completed during the fourth quarter of 2005. Financial details were not disclosed.
The contract encompasses the purchase of assets including products, technologies and customer order lists. Sites and manufacturing equipment are not included. In 2004, the coil coatings business of Rhenania Coatings GmbH had sales of about 8 million.
The acquisition strengthens our coil coatings business, which is of strategic importance to us, said Mr Thomas Stewing, BASFs business director for Precoatings At the same time, it expands our technology competence regarding the coating of aluminium. The technologies BASF is acquiring from Rhenania Coatings are particularly applied to aluminium used by the construction industry, for example in structures that provide sun protection.
Coil coatings are used to coat steel and aluminium coils employed in construction, transportation and household appliances. It is a distinct application in which the steel and aluminium substrates are coated prior to further manufacturing steps. BASF holds a leading position in this global market.
Nimba scrambles for Mittal Steel's US$1.5 million
Nimba County has begun deliberations regarding the use of the US$1.5 million dollars set aside in the Mittal Steel deal for the county. According to the contract, the county will receive US $1.5 million yearly. The amount is to be used to build a university, hospitals and roads for the countys citizens.
The former Paramount Chief of Saclepea Mahn District, Mr Seku Cooper, said LAMCO mined iron ore in Nimba for more than two decades without doing anything to benefit the people. He suggested that the Mittal Steel money should be used to develop the county.
A lady representing the womens group said when Nimba begins to receive the money; female education must be highly prioritized.
A youth representative in the statutory district headquarters of Binaykpalala said as God has begun to address the plight of Nimba citizens, there should be equitable distribution and transparency in the use of the funds.
Citizens in Yarmein Clan, under the crest of Mount Nimba where the mining will be done, are demanding 50 percent of the money.
Rautaruukki has completed the acquisition of Syneco Industri AB
Rautaruukki Corporation has completed the acquisition of Syneco Industri AB from a Swedish company AB Pehrson & Lindgren on 5 October 2005, from which date Syneco Industri will be consolidated in Rautaruukki's reporting and Syneco Industri will use the Ruukki marketing name and logo.
The operative subsidiaries of Syneco Industri are Verksterna Weibulls AB in
Sweden, Weibulls Poland Sp. z o.o in Poland and Syneco Weibulls Metal Components (Shanghai) Co. Ltd in China. The companies manufacture frames and other large steel components for the lifting, handling and transport industries.
Ruukki supplies metal-based components, systems and turnkey deliveries to the construction and mechanical engineering industries. The company has a wide selection of metal products and services. Ruukki has operations in 21 countries
