October, 08 2005
Mittal Steel to sign MoU with Jharkhand government today
Mr SN Satpathy Jharkhand industry secretary informed press that the proposed MoU between Jharkhand government and Mittal Steel for setting up a mega steel plant would be signed today in state capital Ranchi
Mittal Steel has announced its decision to invest about Rs 44,000 crore in Jharkhand for a 12 million tonne integrated steel plant as their maiden venture in the country.
Mr LN Mittal is expected to arrive this morning along with his son Mr Aditya Mittal
JSW to shift to Jharkhand
It is reported that Mr Sajjan Jindal, chairman of Jindal South West Limited met the Jharkhand chief minister Mr Arjun Munda last evening and expressed his desire to set up a 10 million tonne capacity greenfield steel plant in the state at an investment pegged at around Rs 30,000 crore. MoU signing is expected to take place later this month.
It is understood that the proposed 10 million tonne greenfield steel plant would come up either in two or three phases somewhere in Nimdih block in Chandil.
JSWs earlier plans to set up a plant in West Bengal has suffered a setback after the Jharkhand government refused permission to export iron ore out of the state. Mr Munda had categorically stated to his counterpart in West Bengal that export of iron ore was completely against the policies of the government of Jharkhand.
However, it is also reported that JSW would still set up downstream units of near Kharagpur in West Bengal.
Australia coal majors in talks with Indian power plants
Australian coal majors Wesfarmers Coal Company Ltd and Griffin Coal Company Pty Ltd have begun discussions with thermal power stations in India for long-term coal supplies. The Premier of the Government of Western Australia, Dr Geof Gallop has told press "We have large coal reserves and our companies are willing to meet the requirements of India's thermal power stations." Both Griffin and Wesfarmers have had discussions with some potential importers, he added.
Asked about the prices, Dr Geof was non-committal but said that these issues would have to be sorted by the companies themselves. "Ours will be an extremely competitive price," he added.
Currently, several power producers in India import coal to supplement their domestic coal linkages. So far, all the imports by thermal stations or trading companies are on spot basis. The imported coal is used mostly for blending with domestic thermal, though imports are expected to rise in the coming months for power generation.
Only one thermal power station, Nagarjuna Power Corporation which is setting up a 1,015 MW plant in Udipi, Mangalore, has so far entered into a five year fixed price arrangement for supply of imported coal. The coal suppliers have agreed to provide 3 million tonnes per annum at a fixed tariff of $50 per tonne. The suppliers include Glencore International from South Africa, RioTinto from Australia and P.T. Adaro of Indonesia.
The offer from the Australian companies comes at a time when domestic thermal stations are facing major supply bottlenecks. The shortfall in domestic coal supplies from Coal India Ltd has, in turn, led to slippages in power generation targets. As a result, even thermal stations such as the National Thermal Power Corporation and State government-owned stations are expected to begin importing coal to offset the supply bottlenecks from CIL and ensure that there are no power supply outages
Besides, despite being on the high side, international coal prices are still attractive. On the face of it, domestic coal appears cheaper at Rs 1,800 per tonne (around $41). However, the domestic thermal coal had a calorific value of only 3200 kilocalories per kilogram (kcals per kg) and high ash content.
Imported thermal coal had a calorific value of 6100 kcal per kg. This, in turn, implied that imported coal, though priced close to about $59 per tonne on a CIF basis, would still be considerably cheaper.
Coal ministry may set up a coal price regulator body
It is reported that the coal ministry is being requested by large users of coal as well as planning commission to set up a regulator to determine the price of coal. The coal ministry, which has so far resisted any such moves, would be urged to put in place a regulatory framework for the sector on the lines of the Central Electricity Authority that regulates the power sector.
At present, state run Coal India Ltd fixes the prices of various grades of coking and non coking coal and power utilities have been complaining that the coal supplied to various power stations was often of poor quality despite the high price.
Coal ministry officials have been reported to have said that since the coal sector is being gradually opened up and a more transparent pricing mechanism was being put in place, there was no need for a separate regulator. Instead, the Tariff Commission under the finance ministry, should look into the pricing issue for the energy sector as a whole and not just coal
The officials said the scope of E auction, started recently, was being expanded for better price realization for coal PSUs. Moreover, international coal prices were being considered for benchmarking domestic coal prices. Also plans were underway to shift from the present coal linkage system for the core sector to fuel supply agreement (FSAs). This will make both suppliers and consumers more responsible, they said
Jharkhand disagrees with center on iron ore export
The steel ministry's suggestion to the central Cabinet and to states to allow foreign companies particularly Chinese to mine iron ore for export to earn valuable foreign exchange has been rejected by the Jharkhand government. The Centre is likely to ask the iron ore rich states to submit their viewpoint on allowing foreign companies export iron ore as several Chinese steel manufacturers were keen to mine iron ore in the state and export it to China to feed blast furnaces there.
Jharkhand mines and geology secretary Mr AK Singh said that the state government would not allow foreign companies to mine iron ore for export. Mr Singh categorically said that the state government would oppose any move from any government for export of iron ore from Jharkhand.
Jharkhand is one of the iron ore rich states in India, with a total reserve of 3,758 million tonnes but has only 28 mines operational giving annual production of 8.6 million tonnes
Nigerian delegation looking for investment partners in India
A high powered delegation from Nigeria is visiting India today along with Mr LN Mittal to India to discuss collaboration in the area of LNG, an export refinery project in Nigeria and rail transport
The delegation includes the Nigerian minister of power and steel, minister of commerce from Nigeria, the group managing director of Nigerian National Petroleum Company, chairman of Nigeria Railway Corporation, along with the Nigerian Presidents special advisor on policy and program monitoring Prof Julius O Ihonvbere.
Government announces steps to improve safety in coal mining
Coal mining is considered world over as a hazardous profession. With constant stress upon safety, there has been a steady improvement in safety performance over the years in Indian coal industry.
Safety has been integrated into process of coal mining and plants have institutional arrangement to keep vigil and monitor all aspects of safety in coal mines at various levels. Participation of workers' representatives is ensured at all levels of safety monitoring. The Government is promoting a number of other initiatives like conferences, workers' participation in safety management, tripartite and bipartite reviews at various levels, and training of work force, observance of safety weeks and safety campaigns and National Safety Awards to promote safety awareness.
To reduce accidents in underground mines, modern technologies are being adopted. These include providing scientific roof support systems, increased use of roof bolting and roof stitching methods, introduction of modern mechanized drilling machines, mechanization of loading operations through introduction of side discharge loaders, load haul dumpers to reduce exposure of workers to mining hazards and introduction of highly capital intensive computerized continuous mine environmental tele-monitoring system.
The number of fatal accidents in coal mines in the country has come down from 222 in 1975 to 90 in 2004. Fatalities have come down from 664 to 99 during the same period. In case of Coal India Limited (CIL), the fatality rate which was 2.62 per million tonne of coal production and 0.52 per three lakh man shifts in the year 1975 has been brought down to 0.22 and 0.20 respectively in the year 2004. Number of fatalities has come down from 105 in 2001 to 70 in 2004. In respect of Singareni Collieries Company Limited, fatalities have come down from 25 in 2001 to 14 in 2004. In the current year, 54 persons have been killed in accidents till the end of July in respect of CIL and 9 case of Singareni.
Govt clears projects worth almost Rs 1 lakh crore
The Centre has cleared projects worth a record Rs 96,629 crore in the first half of the current fiscal. As many as 54 proposals were cleared during the last six months by the Public Investment Board chaired by expenditure secretary Mr Adarsh Kishore.
The proposals cleared included seven hydro electric projects worth Rs 9,722 crore to generate 1,070 mw of power and five transmission projects worth Rs 5,963 crore, an official spokesperson told press
During April September, the north eastern region received special focus particularly in the hydro-carbon sector, including clearance of the Assam gas cracker project. Five projects and schemes worth Rs 7,233 crore were cleared. As a practice, 15% of the total spending would have to be in the backward north-eastern region.
Nearly one-third of Rs 96,629 crore worth of projects are in the infrastructure and social sectors, with projects worth Rs 17,770 crore accounting for one-fifth of the clearances.
Steel & power expo in Chhattisgarh
Chhattisgarh will be hosting a weeklong industrial expo to mark the state's fifth foundation anniversary. The state was carved out of Madhya Pradesh Nov 1, 2000.
Over 50 steel and power companies including Tata Steel, Sails BSP, NTPC and Sterlites BALCO are likely to take part in the expo an industry officer told press. He added that some leading steel and mining companies from Australia, China and Japan too had contacted the state government for participation and a final decision regarding them would be taken within a week.
Chhattisgarh has emerged as the investors' favorite hunting ground in the past three years, mainly in the steel and power sector. The state has 18 percent of the country's coal deposits and 20 percent of iron ore stocks.
Arcelor beats out Tarpon for Acesita shares
Pension funds Previ and Petros, which own part of Acesita, have agreed to sell their shares in the Brazilian specialty steelmaker to Arcelor as per information given by Acesita to Bovespa stock exchange. The move will give Arcelor a 63.9% stake in Acesita.
Arcelor's initial 42.48 reais per share offer increased to 45 reais, totaling 274.5mn reais (US$121mn) for the 25% voting capital and 8% of capital stock of Acesita owned by Previ and Petros. Arcelor's final asking price matches an offer made by local asset management firm Tarpon Investimentos, which wanted to purchase 78% of voting right shares in Acesita
"The move is a reflection of Arcelor's longstanding commitment to Brazil, a high quality and low cost production base for steel products with attractive domestic and export markets," Arcelor said in a statement.
Arcelor also is working to consolidate by November its holdings in Brazilian steelmakers Belgo-Mineira, CST and Vega do Sul into one group called Arcelor Brasil.
China's steel output may slow in 2006 Macquarie reports
China's steel production growth may slow starting in 2006 if the government follows through on a decision to close plants that fail to meet the nation's new industry guidelines. That's the view of analyst Mr Jim Lennon at Macquarie Bank's London office, who believes China will be successful in closing down hundreds of small producers with a combined annual capacity of 55 million metric tons.
The government has been trying to curb expansion in the industry after steel output doubled in the past four years, driving up global prices of iron ore and coal to record highs and fuelling home country inflation. The country announced a policy in July that will shut small, polluting mills and force industry mergers. The expected shutdowns suggest "the phenomenal growth rates we have recently seen in China's steel output should begin to slow significantly next year," the Macquarie report says.
China is expected to boost steel output by 13% to 390 million tons in 2006 after a 26% increase to 345 million tons this year, the report forecasts. The International Iron and Steel Institute says total crude steel production in China of 193.8 million metric tons the first seven months of 2005 is a rise of 28.1% on the same period of 2004. The expanded output this year is contributing to an 8% decline in prices since December. The average price for steel products in China was $603 a metric ton at the end of July, according to the State-Owned Assets Supervision and Administration Commission.
China's steelmaking capacity is between 400 million metric tons (estimated by the country's top economic planning agency) and 419 million metric tons (estimated by the China Iron and Steel Association). The uncertainty exists because while 22% of steelmaking plants are owned by the state and 34% are held by publicly traded companies, the other 37% are controlled by private companies. Lennon says many smaller private operations have never reported accurate steelmaking capacity. Atop all that, another 119 million metric tons of annual capacity is planned or under construction through to 2008, including 71 million set to start operation by end-2006. The Macquarie report suggests that 36 million metric tons of that capacity is unlikely to receive approval under the new steel industry policy guidelines.
POSCO to expand high end steel products to 80% by 2008
POSCO aims to raise the sales proportion of its high end steel products to up to 80% of total production in 2008 to secure global technology leadership as per an announcement from the company. It has already achieved 42% mark this year as against 27.6% in 2003.
POSCO plans to pour an additional 10 trillion won (US$9.62 billion) into the production of high end products by 2008 after spending 4.08 trillion won on them this year. It also plans to increase the capacity of its domestic plants to 34 million tons from the current 30 million tons over the same period.
The high end steel products include those used for cars, electrical use, and gas and oil pipelines
The company's move is aimed at dealing with cheap Chinese products, which have forced POSCO to cut prices of its 11 garden variety steel products for general use
Malaysian Kinsteel takes over Perwaja Steel
In a joint statement on Oct 7, Maju and Kinsteel said they had signed a conditional strategic alliance agreement for the transaction, which would create one of the largest fully integrated steel players, not just in Malaysia but in the region as well. It is reported that both parties would manage Perwaja, the largest steel producer in the country with plants in Kemaman, Terengganu, and Gurun, Kedah and the collaboration would allow the two parties to leverage on each others infrastructure and strengths to increase production and sales. The exercise is expected to be completed by the second quarter of 2006.
Kinsteel Bhd is acquiring a 51% stake in Perwaja Steel Sdn Bhd and its Gurun assets from Maju Holdings Sdn Bhd wholly owned subsidiary, Equal Concept Sdn Bhd, in a deal worth RM197.6 million. This will be settled via 60 million new Kinsteel shares at RM1.36 each and the balance of RM116 million by deferred payments. Kinsteel will also set up a new subsidiary to acquire the Gurun assets from Maju, to be settled via RM100 million cash and new shares. Maju will end up retaining 49% equity interest in Perwaja and the Gurun assets.
Kinsteel MD Mr Datuk Pheng Yin Huah said that With this strategic alliance, the Kinsteel Group is now a fully integrated steel manufacturer through diversification into upstream activities, including the production of DRI and billets and moving further downstream into steel sections and wire rod manufacturing.
Kinsteel operates seven mills in Gebeng, Kuantan, with an annual capacity of about 500,000 metric tonnes of deformed bars, round bars, flat bars, angle bars and U channel bars.
Perwaja is the only producer of DRI, blooms, beam blanks and sections
In Malaysia. The Gurun assets also consist of Maju's bar and wire rod milling mill, beam and section mill, wire conditioning, nail processing and wire mesh factories with a total annual capacity of 1.1 million metric tonnes.
Siemens supplies electrical equipment for new plate mill at Baosteel
The Siemens Industrial Solutions and Services Group (I&S) has received an order from Baosteel Group Shanghai Pudong Iron& Steel Group Co. Ltd., Shanghai, to supply the electrical equipment for a new plate production line which is to be set up in Luojing. In the course of relocating heavy industry from Shanghai's municipal area, Baosteel is building a new production facility in Luojing in the Baoshan Industrial Park.
The new plate mill is designed to produce around 1.6 million tonnes per year. It will manufacture plates with a thickness of between 5 and 200 millimeters and a width of up to 4200 millimeters. The rolling mill will include two heating furnaces, two plate rolling stands, an edger, a rapid-cooling system and a hot plate leveler. The subsequent finishing shop will comprise, among other things, two cooling tables, an inspection line, a shearing line and a cold leveler.
The order includes the automation, power-supply and drive systems for the rolling mill and for the downstream plate treatment stations. The order is valued at around 39 million euros and start-up is scheduled for the beginning of 2008.
Siemens will also coordinate the engineering work and installation of the electrical equipment for the whole rolling line and the finishing shop.
Among the reasons for the contract being awarded to Siemens were the latter's automation concept, the robust highly available drive systems, and the good past experience of the customer with Siemens in respect of the plate rolling mill which was very recently put into operation. Siemens' strong local presence in China was also a motivating factor.
Vinacoal to raise coal prices by 7.5% in 2006
The Viet Nam Coal Corporation Vinacoal asked the Ministry of Finance to consider changing the wholesale price of coal next year to compensate for recent losses experienced by the State-owned enterprise. Vinacoal said losses accrued due to spending on production and development, and because of falling coal prices in the domestic market.
The State-owned company is expecting to sell 30 million tonnes of coal at VND427,500 (US$27) per tonne, a 7.5 per cent increase from this years prices.
In the meantime, the price of producing coal is also expected to rise because of a reduction in the use of open-pit collieries, which yield most of the nations coal. Vinacoal estimates that by 2010, underground mines, which are more expensive to operate, will account for 60 per cent of coal output, up from present levels of 30-40 per cent.
The Vinacoal produced 24.6 million tonnes of coal in the first nine months of this year, an increase of 26 per cent over the same period last year. It has sold 21.3 million tonnes in this period.
Evraz's 9 month pig iron, steel production falls
Evraz Group SA, a vertically integrated steel and mining company that operates mainly in Russia, said nine-month production of pig iron and steel fell but that output at its iron ore division jumped.
The company said pig iron output dropped 0.7 pct to 8.498 million tonnes and steel production dipped 0.1 pct to 10.213 million tonnes in the nine month period. Output of rolled products rose 0.6 pct to 9.219 million tonnes
Production of iron ore concentrate rose 17 pct to 2.111 million tonnes, while sinter output jumped 20.7 pct to 6.733 million tonnes and pellets surged 101.8 pct to 3.770 million tonnes.
Andritz receives repeat SS CR Mill order from Taigang
Technology Group Andritz has received repeat orders from the Taigang Group for the further expansion of Taiyuan Iron and Steel Co Ltd Taiyuan Shanxi China. The order value is approximately EUR 90 million and the production is scheduled to begin in 2007.
For these orders Andritz Sundwig will supply a stainless steel cold strip annealing and pickling line for a maximum strip width of 2,100 mm, a 20 high rolling mill for a maximum strip width of 1,650 mm and a 6 high reversing mill for maximum strip width of 2,100 mm. The new line is designed for an annual production of 700,000 tons and for a strip thickness of 0.4-8 mm.
The extra wide cold strip annealing and pickling line is a follow-up order to the contract for the cold strip annealing and pickling line for 1,320 mm strip received in 2004.
Andritz Group is responsible for engineering, supplying and starting up the machines and systems required.
Chinese government to get rid of blood stained coal
China has witnessed numerous and frequent coal mine tragedies as a result of collusion between officials and mine operators. Underscoring the government's determination, officials are describing the mine safety crisis using the harsh language of "problematic worms," "blood-stained coal" and "gross domestic product stained with blood."
The Chinese government is determined to root out top local officials who have misbehaved in handling coal mine safety issues, said Mr Li Zhilun, head of the Ministry of Supervision. "China is determined to bring all of them to justice," said Mr Li.
Authorities have determined to close 8,648 or 40 percent of the country's mines. Many of them are operating illegally, and some are just small pits. China will take the strictest measures to punish officials who try to deceive investigators by hiding the truth or obstructing their probes, said Li.
Corruption is one of the key factors behind mine disasters. Hundreds of officials had been unveiled as "problematic worms" in probes carried out by both central and local authorities, said Mr Li. "Corruption by local officials has appeared in every single procedure that relates to the approval, licensing, production and sale practices of coal mines," he said. Corruption by those officials who looked the other way and did not enforce safety rules has aggravated the risks for miners.
Severe punishment of corruption is the key to finally solving the mine safety problem, said Li Yizhong, head of the State Administration of Work Safety. "We will work to get rid of 'the coal stained with blood' or 'gross domestic product with blood stains,'" he said
Universal Stainless work stoppage continues
Universal Stainless & Alloy Products Inc has announced that the Titusville facility hourly employees, represented by Local 7312-03 of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL CIO CLC, have rejected a second collective bargaining agreement offered by the Company that included increased wages and other benefits.
The employees rejected an initial offer from the Company and commenced a work stoppage at the Titusville facility on October 1, 2005 after the last agreement expired on September 30, 2005.
Mac McAninch, President and CEO, commented that "We are sincerely disappointed with the outcome of today's vote and intend to continue to work with the union to get an agreement in place."
Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pa., manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The Company's products are sold to original equipment manufacturers, service centers, forgers, re-rollers and wire re-drawers.
Nigeria calls on foreign investors to tap vast coal deposits
The Nigerian government on Thursday called on foreign investors to tap the vast resources of coal deposits in the country estimated at 2.74 billion tons.
Mr Aboki Zhawa, permanent secretary of Nigeria's Federal Ministry of Solid Minerals Development, told reporters at a news briefing in the capital Abuja that "coal, discovered in the country in 1909, is still largely untapped."
He said coal was first discovered in Udi Hill in Enugu state, southern Nigeria, in 1909 followed by more coal outcrops found in other parts of the country.
The ministry scribe explained that five economically important seams of sub-bituminous coal were "discovered outcropping at intervals along the Enugu escarpment over a distance of 144 km from Enugu in Enugu state, to Benue state, also in southern Nigeria." He added that "the coal outcropping also covered Okaba, Ogboyoga and Odokpani areas of Kogi state in central Nigeria."
According to him, coal which occurred with lignite also occurred in the southern states of Imo, Delta and Anambra. Coking coal, he said, also occurred in Lafia Obi in Nasarawa state, central Nigeria, which could be used for the production of metallurgical coke.
With the available digital maps and geoscience information the ministry had on all minerals in the country, he said, their quantities, types and locations would enable investors to mine easily and accurately.
Pakistan gets nine EoIs for privatization of PSM
Pakistan's Privatization Commission has already received nine Expressions of Interests (EoI) for the privatization of Pakistan Steel Mills (PSM) by December 30, 2005. The last date for submitting EoIs to the Privatization Commission is October 9 and according the sources the concerned officials were expecting more EoIs during the next few days time.
Official sources said that out of nine, five large international companies of Saudi Arabia, UAE and Russian have shown their active interest to buy up to 74 per cent shares of the PSM and take over its management control.
The government was expecting that a new strategic investor would inject $700$800 million during the next four year period to increase the Mills's capacity from 1.1 million tons to 3 million tons.
The Financial Adviser of the Mills Citigroup Global Markets Limited, UK along with a consortium of technical, legal, accounting and HR advisers comprising respectively Corous Consulting Limited, Dignam & Co and AF Ferguson & Co has been directed by the government to urgently complete all the formalities so that the Mills could be disinvested well in time.
Row over reduced steel tariffs deepens in UK
Following no reply from Prime Minister Tony Blair requesting documentation relating to the role of the British Government in steel tariff negotiations, the UK Independence Party Leader Mr Roger Knapman has called on the European Commission to release documents relating to the decision to reduce steel tariffs from companies owned by Labor donor Mr LN Mittal after being stalled by the British government following a Freedom of Information Act request to Downing Street in August.
Mr Knapman has tabled a question calling on the Commission to release documents relating to the British position in negotiations, which lead to EU anti dumping tariffs on steel imports being reduced for steel produced by the Mittal Steel Group.
Mr Knapman had written to the Prime Minister in August and according to the guidelines from the Information Commissioner requests should be dealt with within 20 working days. Mr Knapman said, "My original intention was simply to give the government an opportunity, in the interests of openness and transparency, to dispel any notion that Mittal's donation had unduly influenced the government's negotiating stance. Their failure to respond within the time limits they set, and Mr Peter Mandelson's role in subsequently canceling all anti dumping tariffs, inevitably creates the impression that there is, after all, something to hide.
He added that Over the past few years, a Mr LN Mittal has donated large sums of money to the British Labor Party. I am sure it is coincidental that shortly after these donations, the European Commission reduced the rate at which anti-dumping duty was applied to products from Mr Mittals steel mills in Romania, South Africa, China and India. No other single company benefited to anything like the same extent
Rautaruukki sells Halikko works business operations
Rautaruukki Corporation has sold the business operations of Ruukki Engineering's Halikko Works in an MBO to Halikko Works Oy, which is owned by the operative management of Halikko Works, Mr Jorma Lukkari, Director at Rautaruukki Corporation, and private equity investors. The works is being sold because the products made by Halikko Works are not part of the core business of Ruukki Engineering.
The products manufactured at the Halikko Works include steel dished ends for pressure vessels, cones, and segmental plates for spherical tanks. The applications for the products are in the wood processing, chemical and food industries.
The Halikko Works had net sales in 2004 of EUR 13 million
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
Fortescue Metals pins hopes on upgrade
Iron ore developer Fortescue Metals Group Ltd hopes the latest resource upgrade at its $1.95 billion Pilbara project will silence concerns about the quality and amount of iron ore at the project.
Fortescue has increased the amount of resources in the indicated category by 70 per cent at the Cloud Break and Christmas Creek to 1.4 billion tonnes of iron ore. Most of the increase came from the Cloud Break deposit, where 572 million tonnes is now considered indicated. Total resources at the project, including indicated and the lower confidence category inferred, now total 2.4 billion tonnes.
Executive director Mr Graham Rowley said he hoped the new resource statement would silence critics which had doubted the resources at the project. "We have been criticised a little bit of late with people saying `FMG has only got inferred resources' and we kept saying `we have got good resources'," he said.
The massive infrastructure and mining project is due for completion in 2007, initially producing 45 million tonnes of ore a year. The resource upgrade also boosted the high-grade iron ore, which can be directly shipped without any beneficiary processing, by 80 per cent to 578 million tonnes.
Drilling will continue with further upgrades expected at Christmas Creek and Cloud Break over the next two months.
Russia's MMK eyes bid for Pakistan Stee
Russia's MMK may bid in the privatisation of Pakistan Steel, following other Russian steel majors in making its first foray abroad
Pakistan last month invited expressions of interest in the sale of up to 74 per cent in Pakistan Steel Mills Corp, which is the country's largest and only integrated steel operation.
"The Pakistani market is very promising. In addition, the assets are interesting they are not far from a port," a local news paper has quoted a MMK official
Russian analysts estimate Pakistan Steel is worth $600-$700 million, meaning the strategic stake on offer of 51-74 per cent could fetch $300-$500 million
Mittal Steel to establish US HQ in Chicago
Mittal Steel has selected Chicago for its U.S. headquarters and will open its office here in January as per an official announced on last Friday.
The company said 212 employees scattered across several states will move into a high rise now under construction in the downtown business district.
Mr Louis Schorsch, CEO of Mittal Steel US mentioned the reason for choosing this location as the city in part for its law and audit firms and is close to O'Hare International Airport.
Siemens to modernize compensation plant at Hadeed Steel
The Siemens Industrial Solutions and Services Group (I&S) has received an order from Sabic Services Ltd. of Saudi Arabia to modernize two dynamic compensation systems in the Hadeed I steelworks for Saudi Iron & Steel Company Hadeed. The project is valued at 3.6 million euros and is scheduled for completion in spring 2006.
At the end of 2004, Siemens had received an earlier order to supply the complete power distribution system and dynamic compensation equipment for the extension of the Hadeed II electric steel plant.
As part of an expansion program to increase capacity, the company is modernizing existing power systems such as the static variable compensators SVC #1 and SVC #2, which had also been supplied and installed by Siemens in 1981 and 1991. The aim is to minimize network perturbations and improve the power factor. Siemens is supplying a new thyristor controlled reactor with a three phase oil immersed iron core reactor for the compensation systems.
Compared to air insulated reactors, these TCRs require less energy and space and generate less noise. In addition, Siemens is installing a new 120 Hz filter circuit and is enlarging the existing switchgear. The Simatic TDC automation system is being implemented for both SVCs. Siemens is also responsible for the engineering and customer training.
Hadeed belongs to Sabic Holding of Riyadh, Saudi Arabia, and is the leading steel manufacturer in the Gulf region.
The Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services.
Wyoming coal price surges to record amid new supply problems
The price of coal mined in Wyoming's Powder River Basin surged to record highs in the week ended Oct. 7, as electric utilities bid aggressively in the market to make up for shipments lost by a host of problems that have dogged coal producers and railroads since May.
Most recently, torrential rains at the beginning of October in Kansas washed away hundreds of feet of track on Union Pacific Corp.'s lines near Topeka and damaged several rail bridges. The disruption caused a backup over a hundred trains long, many of them carrying Wyoming coal, and forced several utilities that depend on coal shipped on those lines to run dangerously low on supplies.
The price of Wyoming coal for delivery in 2006 rose 11% on the week, based on continuing strong demand from utilities that need the fuel to rebuild their stockpiles, market sources said. Next year's coal is now trading around $15.45 a short ton, up from $10 in mid-July.
Arch Coal to reactivate Coal Creek for K-Fuel
Arch Coal Inc has announced that it would reopen its Coal Creek sub bituminous coal mine, which is about 25 miles south of Gillette in Campbell County
The coal would be supplied to KFx Inc, which is building a facility in the county to create K-Fuel buy removing moisture from coal, reducing shipping costs by reducing volume and weight and allowing the coal to burn hotter, while also removing sulfur, nitrogen and mercury, which can cause pollution when burned.
Before the mine was closed in 2000 after several years in operation, coal mined from Coal Creek was rated at 8,500 British thermal units, a measurement of how hot fuel will burn. When converted to K-Fuel, the end product should burn at 11,500 BTU, company officials said.
Korean Doosan plans $250m project in Vietnam
Korean giant Doosan Heavy Industries & Construction is considering a US$250 million investment to build a complex in central Quang Ngais Dung Quat Economic Zone
Doosan is planning to rent a 110 hectares plot bordering the ocean in the economic zone, which would enable it to build a port that could handle at least 300,000 tonnes of cargo per year. The company, which would export 80 per cent of its output, is expected to produce boilers, thermal turbines and other construction equipment
The Seoul based firm, which produces desalination equipment, elevators and petrochemical equipment is a subsidiary of the oldest Korean business group Doosan, is the leading supplier of power equipment in Korea and one of the worlds top suppliers of desalination equipment, with a 25 per cent international market share in the field of MSF technology. The company has a subsidiary in Viet Nam called the Han-Viet Heavy Industry and Construction Corporation (Hanvico), which last year won an $800 million contract from the United Arab Emirates to construct the Fujairah Power and Desalination Plant.
Australia's Lionore to hike production at Black Swan nickel mine
Nickel and gold producer LionOre Mining International is to spend $52.52 million to boost production at its Black Swan nickel mine by 50 per cent.
The miner said the project would expand the existing open pit mine and upgrade the processing plant's capacity upgrading the processing plant's capacity to 2,150,000 tonnes per year from 600,000 tonnes per year.
LionOre said payable nickel production at Black Swan, which is located near Kalgoorlie, would increase by about 50 per cent to 13,000 tonnes per year and the expansion would be funded from operating cash flow.
Turkey to build water pipeline for Turkish Cypriots
Turkey launched a long-standing project on Friday to build a pipeline under the Mediterranean to supply water to the Turkish Republic of Northern Cyprus (KKTC). The pipeline will run from the southern Turkish province of Mersin on the Mediterranean coast across from Cyprus to the Gecitkoy area, near the northern Cypriot port of Kyrenia.
Officials signed a $9.5 billion (7.9 billion euro) deal with a contracting company for the 78-kilometer (48-mile) conduit that will run at a depth of 250 meters and carry 75 million cubic meters (2,625 million cubic feet) of water per year, the agency said.
The construction of the pipeline and related facilities on the two shores are due for completion in 27 months, but it is not yet clear when the conduit will become operational, an energy ministry spokesman told the AFP.
One-fifth of the annual supply would be used as drinking water and the rest for irrigation to revitalize agriculture in the KKTC, whose economy has been hard hit by international sanctions. Turkey, the only country to recognize the KKTC, has long propped up the enclave, which has a population of about 200,000 people.
