November, 16 2005
Mr Munda rethinking on iron ore export ban !
Jharkhand CM Mr Arjun Munda today said that his government would reconsider the issue of enforcing a blanket ban on the export of surplus minerals from the state to any location outside Jharkhand.
Jharkhands Cabinet, on October 20th, approved a proposal of Mr Munda and decided that the government would allow export of minerals outside the state only if mine lease holders, granted prospecting licenses prior to the governments move, fulfilled the needs of local industrial units on a priority basis.
We had a discussion in the Cabinet and I will take up the issue with the Prime Minister in person when I meet him. The issue is crucial for the future of the states mineral reserves as well the states economy, said Mr Munda. The Jharkhand governments decision to enforce the ban drew criticism from experts in the mining industry. Some even called the decision unconstitutional. But senior mines and geology officials said the proposal was a step towards framing a real mineral policy for the state.
BHP to mine iron ore in India
BHP Billiton, the world's biggest mining company, plans to mine iron ore in India, where steel output is forecast by the government to triple in 15 years. We're very interested in mining iron ore in India,'' Mr Bob Kirkby, group president of carbon steel materials division, said in an interview in Mumbai
We are working on it as hard as possible. The natural advantage in India is you don't have to ship ore. We can be close to steelworks and sell cheaply'' Mr Kirkby is reported to have said
Government to develop more facilities at Paradeep port
Union Minister for Shipping, Road Transport and Highways Mr TR Baalu, during a recent visit to the Paradeep port said "Currently the Government has taken up five new projects with an investment of Rs 675 crore,"
The projects include deepening of channel to accommodate 125,000 DWT vessels for Rs 154 crore, developing deep draught iron ore berth on build, operate and transfer basis at cost of Rs 328 crore, developing a clean cargo berth at Rs 138 crore, replacement and procurement of four cranes at cost of Rs 30 crore and developing railway sidings at Rs 25 crore. A container berth would also be developed on BOT basis.
Paradeep port had achieved a record traffic of 30 million tonnes in 2004-05 and has modern mechanized coal handling plant, iron ore handling plant and wagon tipplers in operation
CIL may form a JV with Brazilian CVRD for Mozambique acquisition
Coal India Limited CIL may float a JV with Brazilian mining company CVRD to acquire coal mines in Mozambique. We can either become a JV partner of CVRD or may pick up stakes in the Mozambique coal blocks for sourcing coking coal. Coal India can also go stand alone basis, senior company officials is reported to have said. Coal India is keen to acquire coal mines of Carbomoc, a coal company in Mozambique that had stopped full-scale production after years of civil war ruined the rail infrastructure.
CVRD has bagged the contract to carry out a feasibility study of the coal reserves in the western province of Tete in Mozambique. The Brazilian company is expected to lift coal from the mines by 2008-09. Two Indian companies, RITES & OIRCON, have facilitated the entry of CVRD in the Mozambique coal industry by meeting the pre condition of ensuring rail transport to the port of Beira, which was destroyed during the civil war
A four member team from Coal Videsh, a department set up to fulfill Coal Indias overseas acquisition plans, recently visited Mozambique, Zimbabwe and South Africa. Coal India has not yet got permission from the Centre to set up its overseas subsidiary and it is now running it as a separate department. Coal India is venturing to Mozambique, Zimbabwe and South Africa to procure coking coal. Coal Videsh has to contribute 10 million tonnes of coal by 2010 and 50 million tonnes by 2020. Sources said in the second stage of operations, Coal Videsh will venture into Russia, Kazakhstan, Canada, Venezuela and Poland for coking coal.
TATA Steel to make TMILL a major logistics company by 2008-09
TATAs are planning to list TM International Logistics Ltd TMILL, a 3 year old subsidiary of TATA Steel, in order to make it an Rs 1,000 crore integrated logistics services company by 2008-09. We are planning to place before the board, within the next six months, a proposal to come out with an initial public offering to fund a part of our CAPEX plan, TMILL MD Mr SC Saxena said.
TMILL, which is presently active in port operations; chartering; customs clearance; freight forwarding and shipping services, is a JV between TATA Steel and IQ Martrade Holdings of Germany, with the former controlling 51% of the present equity base of Rs 18 crore.
Tribal demonstrate against TATA steel plant site in Bastar
It is reported that hundreds of tribal in Bastar in Chattisgarh took to streets on Monday to protest against a proposed Steel plant by TATA Steel as the proposed site for the project, which includes seven villages adjoining Chitarkoot waterfall and Indravati River, has made the villagers fear about loosing their homes.
TATA Steel has signed a MoU with the Chattisgarh State Government in June this year for setting up a 5 million tonne integrated steel plant in the iron ore rich Bastar region with a total investment of INR 100 million ($2.19 billion)
I don't want to talk to Naxals. We have a good experience of 30-40 years in the field and on the basis of which we chose the site. The company is for people and has a social service motive also attached with the project," said Mr B Muthuraman, MD of Tata Steel.
Accident at Jindals US pipe plant crushes one worker
A worker was crushed Tuesday morning during an accident at Jindal United Steel Works. Authorities have not released any details on the accident.
In a 40 page document from the US Department of Labor, more than 100 citations for safety and health violations were listed for Jindal. The citations range from failure to correct crane hazards to serious health violations.
In October 2000, the Occupational Safety & Health Administration OSHA fined Jindal $1.7 million for 182 alleged violations. Jindal's sister company, SAW Pipes USA Inc was fined $500,000 three months later by OSHA for 67 alleged willful violations for failing to document illnesses and injuries on the job.
Iron ore transportation to Paradip port hampered
It is reported that restrictions have been imposed on the road transportation of iron ore from the mines to Paradip port as the repair work is in progress on the 40 km stretch between Kendrapara and Paradip. The restriction will be in force for a few more days, till the repair work is over, it is learnt. The National Highway Authority of India is undertaking the repair job. Now, only rail borne iron ore is arriving at the port at an average of about 3 to 4 rakes per day.
The movement of trucks with heavy loads has become almost impossible as the roads were badly damaged due to monsoon. Usually, an estimated 2,000 trucks carrying iron ore enter the port every day.
Coal allocation for 2006-07 increased for e auction route
The committee of secretaries has approved a proposal to quadruple the quantity of coal to be sold under the e-auction route to 40 million tonne in 2006-07 from 10 million tonne in the current fiscal. The price realization through this route till now has been 60% higher than the administered prices.
The move is aimed for better price discovery for coal in the domestic sector where more than 80% of the sales are still done under the administered route. Out of the countrys total coal production of about 400 million tonne, price of about 300 million tonne is administered by the government.
While the power sector has been kept out of e-auction route and will continue to get this input material at administered prices, the CoS has said that even administered pricing should be determined taking into account the price of imported coal and market price of e-auction.
For 2005-06, the government intends to increase the total production of 406.48 million tonne, out of which coal linkages of about 279 million tonne has been provided to the power sector.
Coal Videsh formation plans face roadblocks
Coal India Ltd CIL has been asked to rework the proposal for formation of its overseas arm Coal Videsh due to objections from various ministries. CIL had proposed the formation of Coal Videsh on the lines of ONGC Videsh for acquiring overseas coal properties equity of Rs 1 crore.
While the argument for oil companies picking up equity is valid in the wake of our dependence on imports, the same argument does not hold true in case of coal as we have a large number of coal reserves within the country, a finance ministry official is reported to have said. The finance ministrys contention is that the overseas arm could be used to source long term contracts to import high quality coal.
PGCIL to invite bids for transmission line projects
Power Grid Corporation of India Ltd PGCIL is planning to invite bids from private sector companies for executing power transmission projects worth Rs 2,500 crore in the Western region before November end.
PGCIL will invite single stage bids for projects covering a transmission network in Gujarat and Maharashtra through the 100% private participation route. The projects are scheduled for completion by 2009. Only firms having experience in the infrastructure sector will be allowed to participate in the bidding process. The transmission projects in Gujarat and south Maharashtra form part of a larger scheme that also includes beefing up transmission infrastructure in Madhya Pradesh. PGCIL will execute the remaining stages of the project, including the Madhya Pradesh projects on its own.
The projects were a subject of dispute between PGCIL and Reliance Energy Ltd, with the latter approaching the Central Electricity Regulatory Commission CERC to seek a license to set up the transmission lines on its own. CERC had, subsequently, turned down Reliance Energy's petition.
Visas coke batteries to start in March
It is reported that Visa Steel Ltd's 400,000 tonnes per annum capacity, stamp charged coke oven project is slated to go on stream in March 2006. Production at full capacity would be attained by June 2006, according to Mr Vishal Agarwal, MD of Visa Steel Ltd.
It is learnt that the coke oven project, which has been set up at a cost of Rs 160 crore, as a part of a fully integrated 1.5 million tonnes per annum capacity steel and stainless steel project being set up at the Kalinganagar Industrial Complex in Jajpur district of Orissa at an estimated total cost of Rs 2,500 crore. While the first phase of the steel plant, which envisages the setting up of a 0.5 million tonnes capacity unit, would be ready by 2007, the project in its entirety would be operational by 2010.
It is also learnt that Visa Steel has commissioned a 225,000 tonnes per annum capacity blast furnace at the same site at an investment of Rs 96 crore. Basic grade pig iron produced therein is sold to steel plants in the region while the foundry grade pig iron that is produced is sold to foundry units in and around Kolkata and Punjab.
OMEL bags oil blocks in Nigeria
Nigeria has awarded ONGC Mittal Energy Ltd OMEL deep water oil exploration blocks with a potential of producing 6,50,000 barrels per day for the next 25 years. It also offered an assured supply of 1,20,000 barrels of crude per day.
In exchange, OMEL plans to invest $6 billion in Nigeria on 2,000 mw coal or gas-based power plant, railway systems and capacity building. The company has also proposed setting up of an export-oriented refinery in Nigeria with a capacity of 1,80,000 bpd.
TATA Steel wins accolades from the Indian Institute of Metals
Tata Steel has won the prestigious Tata Gold Medal from the Indian Institute of Metals for his significant contribution to Metallurgical Industries for the year 2005. Among the distinguish recipients of the Tata Gold Medal Award from Tata Steel are Dr. Jamshed J Irani former MD of Tata Steel and Director Tata Sons, Dr. T Mukheerjee, Dy. MD (Steel) of Tata Steel and Mr. B Muthuraman, MD of Tata Steel.
Several other executives from Tata Steel are also recognized for their contribution in metallurgy by the Indian Institute of Metals at the NMD Celebrations. The OP Jindal Gold Medal for outstanding contribution to the development of Ferrous Metals & Alloys is awarded to Mr UK Chaturvedi, VP Long Products of Tata Steel.
The Indian Institute of Metals has been commemorating the National Metallurgists Day (NMD) every year on November 14. The Indian Institute of Metals on behalf of the Ministry of Steel selects and honours distinguished metallurgists of India for their outstanding contribution in the field of metallurgical education, research and industry.
Timken pulls out of NRB Bearings
Timken France SAS has exited from NRB Bearings, the ball and roller bearings manufacturer. The Sahney family, promoters of NRB has bought the foreign collaborators 26% for a sum of Rs 57.96 crore.
NRB was jointly promoted by the Sahney family and Nadella SA now known as Timken France SAS in 1966. However, the technological collaboration between the two promoters expired in 1998. Since then, Timken was largely a financial investor in the Indian venture.
They were not adding value and therefore negotiations began on buying out their stake. Moreover, NRB has been developing and introducing new products on its own, sources close to the deal cited as the reason for the break off. Further, the buyout will provide a good flexibility to the current management in supplying NRB products to global OEMs, they added.
Meet on emerging trends in steel to be held today
Eminent experts from Steel industry will deliberate in a day long seminar on Emerging trends in the Steel Industry today. The meet, being organized by the All India Induction Furnaces Association (AIIFA), will be inaugurated by Kerala Governor Mr RL Bhatia while Mr JP Singh, Joint Secretary, Ministry of Steel, will be the guest of honor
Mr JK Arora, Secretary General, AIIFA, in a statement said that the experts will be discussing various issues concerning the Indian steel industry. The issues will include A Global Outlook for Steel with Indian Prospective, Steel Market Today: Emerging Trends, Production of Steel by Electric Furnace making process, radio active in steel melting scrap and energy conservation and quality improvement in steel production.
Jaiprakash Group mulls investing Rs200 billion in power projets
JP group has announced that it would invest up to Rs200 billion in developing hydel and thermal projects by 2012 to emerge as one of the top three integrated power players in the country. Mr Manoj Gaur,MD of Jaiprakash Associates Ltd said "we are also working towards restructuring of business and considering putting all power investment in JP Associate under a separate entity that could be our holding company for all our power sector ventures. We have commissioned Ernst and Young for the restructuring exercise and will take a decision by April next year"
"Power sector and especially hydro power is going to be our main focus. In the power sector alone we have plans to invest about Rs200 billion in next five years to become 5000 MW company from 300 MW now," he said. The Group has also been allotted two hydro projects for over 2100 MW in Arunachal Pradesh, Gaur said adding the MoU is likely to be signed within a month. Apart from these hydel projects, the company is also likely to undertake 1000-MW thermal project.
Dubai based C&O bags coal supply bid for Parli
Dubai-based coal supplier Coal & Oil (C&O) through its subsidiary Coastal Energy has been awarded the contract to supply 600,000 tonne of imported bituminous coal to Maharashtra State Electricity Boards (MSEB) for their upcoming power plant at Parli, which is expected to be synchronised in April 2006
It is reported that C&O has also offered multi origin material for the Khaperkheda and the Parli plants in the state. This is the first time that MSEB has decided to use imported coal at Khaperkheda. Previously, imported coal has been used in the Nashik and Bhusawal plants.
But with all these plants depending on imports, MSEBs coal imports will be around two million tonne in the current fiscal, up from just under one million tonne in the previous fiscal. C&O won the 0.9 million tonne supply tender for the Nashik and Bhusawal plants in March.
C&O, which already owns a coal mine in Indonesia, is also exploring the possibility of getting into coal mining in the country in partnership with power companies to whom it supplies coal. Mr Ahmad Buhari, president and CEO, of the company said, With the power companies getting into bidding for captive coal blocks, it makes a lot of sense for us to tie up with them for mining operations.
Ferrous metal prices in China see big rise in October
The prices of ferrous metals in China saw a big rise in October due to increasing domestic demand and soaring prices on the international market, China Securities Journal said on Monday. The report said the prices in October was 4.5% higher than the previous month, quoting data from the Marketing Department of the Ministry of Commerce.
In October, copper price rose 5.6 % YOY and the prices of aluminium and zinc went up 6.8% and 4.6% respectively over September.
Analysts attributed the price hike to speculative funds. Speculators, they said, showed interest in the ferrous metal market, as the prospects of investment in the markets of stock, foreign exchange and real estate look groom in China. Besides, China's slump steel market, which is under State macro-control and regulation, and declining oil prices also prompted speculators to explore new investment channels.
Steel strap company to start next to Nucor
DuBose Manufacturing Inc., based in Clinton, N.C. is scheduled to complete its facility for making steel strapping in as little as a year, Mr Larry Johansen, company president, said. The steel strapping makers second locale will be near Nucor Steel, east of Crawfordsville.
DuBose, in business 25 years, cuts strapping from Nucors steel coils, and sells strapping to Nucor to bundle its steel, Johansen said. The coils also are used to bundle products such as plywood and other construction materials.
Building here will reduce freight costs for DuBose because Nucor delivers steel for free by rail to companies near them, said Mr Ron Dickerson, Nucors VP and GM.
Falconbridge to make Koniambo decision
Falconbridge Ltd, a takeover target by fellow Canadian miner Inco Ltd. is expected to announce later on Tuesday whether it will proceed with its $2.2 billion Koniambo nickel mining and smelting project in New Caledonia as Falconbridge's management in New Caledonia, a French territory in the South Pacific, last month indicated it would provide a final decision regarding its commitment to the project by November 15.
"The deadline has been set in 1998, as part of a so-called Bercy accord between the French Ministry of Finance and Koniambo's main shareholder (51 percent), the Societe Miniere du Sud Pacifique, SMSP, which is the financial arm of New Caledonia's Northern province," a report said.
In early October Falconbridge said it was talking to the French government and to banks about financing the project. Speculation has emerged since then that it could be shelved if Inco succeeds in a friendly $10 billion takeover of Falconbridge. Inco is developing a similar-sized nickel project in Goro in the Southern province.
The French Ministry of Finance has strongly denied extending the timeframe within which Falconbridge must make a decision on whether to commit to the project, the French daily newspaper Le Monde reported, according to the service.
The Koniambo project is regarded as a key instrument in a rebalancing of wealth between the northern part of New Caledonia, home to the bulk of the indigenous Kanak population and the more affluent Southern Province. The project is forecast to yield some 60 thousand tons of nickel a year by tapping New Caledonia's rich ore veins and making it one of the world's largest suppliers of the metal used to give stainless steel its shine.
Ugandas Sembule Steel returns to capture regional markets
Ugandas Sembule Steel Mills Ltd SSM recently made a comeback to the steel industry after six years. The company commenced multi billion investments and a mass production strategy in March this year.
SSML Managing Director, Mr Francis Sembuya said We have largely been trading through our sister company Shelter Limited and are now consolidating all our steel operations through Sembule Steel Mills Ltd. We have made a heavy investment and set ourselves ready to produce the quantities that can satisfy the demand in the region.
It is reported that SSML product ranges from barbed wire, chain link, expanded wire mesh, roofing sheets and mild steel plates and welding electrodes among others.
Meet on emerging trends in steel to be held tomorrow
Eminent experts from Steel industry will deliberate in a day long seminar on Emerging trends in the Steel Industry tomorrow. The meet, being orgnaised by the All India Induction Furnaces Association (AIIFA), will be inaugurated by Kerala Governor Mr RL Bhatia while Mr JP Singh, Joint Secretary, Ministry of Steel, will be the guest of honor
Mr JK Arora, Secretary General, AIIFA, in a statement said that the experts will be discussing various issues concerning the Indian steel industry. The issues will include A Global Outlook for Steel with Indian Prospective, Steel Market Today: Emerging Trends, Production of Steel by Electric Furnace making process, radio active in steel melting scrap and energy conservation and quality improvement in steel production.
Bulk freight rates firming up for late November shipments
The cost of shipping bulk commodities such as iron ore and coal rose for a second straight week as cargoes scheduled to load this month outnumbered ships available for hire. Demand for vessels in the second half of November has been encouraging,'' Galbraith's Ltd., a London-based shipbroker, said
The Baltic Dry Index, a measure of freight rates for different-sized vessels carrying dry-bulk commodities on international routes, rose 15 points or 0.5% to 3048, according to London's Baltic Exchange. The index has risen about 3.9 percent from a five-week low reached on Nov. 8 as rising demand for space on dry-bulk vessels both for single voyages and long-term contracts allowed operators to raise freight rates.
Freight rates for Capesize, which can carry up to 175,000 tons of cargo, on the benchmark route from Australia to China rose 1% or 12.5 cents a metric ton, to $12.66 a ton, on the route from Brazil to China, costs increased 0.8% or 27 cents, to $31.91 a ton and from RBCT South Africa to the Netherlands rose 4 cents a ton to $15.30, according to the Baltic Exchange.
Shipping derivatives known as Forward Freight Agreements on the benchmark route from RBCT to Rotterdam, known as C4, closed at $14.75 a ton for November contracts on Nov. 11, according to International Maritime Exchange AS or Imarex in Oslo. Derivatives are financial obligations whose value is derived from indexes, interest rates or underlying assets such as debt, equity, commodities or currencies.
Iron ore price could rise another 20 pct AME analyst
Iron ore prices, which shot up more than 71% in 2005, could well rise another 10 to 20% in the next settlement, an industry consultant said on Monday. "We think the price will be up between 10 and 20%," Mr Shaun Browne, chairman of consultancy AME Minerals Economics, told during a Metal Bulletin's Ferro Alloys Conference
"Chinese steel mills are arguing for a cut, but although there is excess steel capacity, the iron ore market remains tight," he added Mr Browne said that as the iron ore market is dominated by three major players CVRD, BHP and Rio Tinto and they have the upper hand. "Three players mean a more organized market in which you can control supply," he said.
China to rationalize steel sector due to over-capacity
The National Development and Reform Commission (NDRC), the country's top economic planning body, will rationalize the steel sector because of severe over-capacity, a local news paper reported, citing a senior NDRC official.
'Structural adjustment to the steel sector should be focused on acquisitions and mergers... (the NDRC) will raise the threshold for entrance into the steel industry to shut down small mills,' said Ms Jia Yinsong, deputy director of the NDRC's bureau of economic operations. Ms Jia said steelmakers should enhance the added value of their products and not mass produce low-end products.
The newspaper also quoted Mr Chen Haoran, chairman of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters, as saying China is expected to have an over-capacity of at least 100 tons of steel this year amid expected demand of 300 mln tons. Mr Chen expects China's steel production capacity to hit 490 mln tons in 2006 and 538 mln tons in 2008, up from 419 mln tons last year.
Demand will grow at a much lower pace, and is expected to reach about 320 mln tons in 2010, he said. 'It is a crucial task for the steel sector to eliminate low-level steel mills and improve the overall competitiveness,' Mr Chen said.
According the China Iron and Steel Association (CISA), China's least competitive steelmakers, which are also high energy consumers and heavy polluters, have a combined production capacity of 180 million tons, accounting for about 30% of the national total.
2006 iron ore prices to be above average Rio Tinto
Iron ore prices next year are expected to remain above average, but how negotiations over the price between the largest miners of the raw material and multinational steel producers will conclude is not predictable said Mr Vivek Tulpule, chief economist at Rio Tinto, said during a mining conference in Beijing. "It is not up to Rio Tinto to set prices," he said. "But there are a number of factors that suggest to me an above average price."
The iron ore giant sees expensive spot supply coming out of India and strong demand from countries like China while overall supplies remain short and problematic. Tough negotiations over prices are heating up between the biggest steelmakers and the suppliers of a key raw material, iron ore.
Price negotiations between steel and iron ore companies for the coming year typically heat up in the fall and can last six months.
In 2005, iron ore giants like Rio Tinto, CVRD and BHP, which control more than 70% of the global iron ore export market, negotiated 71.5% hikes in prices of iron ore from multinational steel producers.
Mr Chiang to make CSC a 'shining example'
Mr Chiang Yao-chung, Taiwanese China Steel Corps new chairman, vowed yesterday to work with the staff of the CSC to make the company "a shining example to the world."
Mr Chiang, who originally served as chairman of China Airlines, Taiwan's largest air carrier, made the remarks after taking over the chairmanship from Mr Lin Wen-yuan in an extraordinary meeting of the CSC's board of directors.
Mr Chiang expressed the hope to expand the company's management and performance, as well as upgrade the quality and value of its products to make the company a global leader.
Brazilian Gerdau buys Spanish Sidenor
The buying operation of the Basque iron and steel company has been signed for Euro 443.8 million with Brazilian Gerdau having 40%, Spanish financial group Santander with another 40%, and members of the Sidenor board with the 20 p%
Sidenor supplies the European market devoting the 93% of its production, which goes mainly to the car industry. It has two iron and steel plants in the Basque cities of Vitoria-Gasteiz and Basauri and one in Reinosa Cantabria, two forges in Basque towns of Villalba and Elgeta and trade missions in the United Kingdom, France, Germany and Italy.
Brazilian Gerdau group is the biggest steel producer of the American continent has iron and steel plants in Brazil, Argentina, Canada, Chile, Colombia, US and Uruguay. It has a total of 29 factories and it production of 16 million tones places the company in the number 12 of worlds iron and steel companies.
Russian pipe market to expand in 2006-2007
Russia's steel pipe market will expand in 2006-2007 on the back of increased demand from the oil sector, Mr Vitaly Sadykov, general director of ChTPZ Group, said at Metal Expo 2005.
Those will be pivotal years for Russian pipe consumption," Mr Sadykov said. He said overall growth in consumption by the oil industry would be 5% to 7%, and that demand for large diameter pipes would rise by more than 15%. Demand and production in 2005 will be 3% to 4% higher than in 2004, Mr Sadykov said.
He said the ChTPZ Group's Pervouralsk Novotrubny Pipe Works (PNTZ) would probably reduce pipe output in 2006 due to restrictions on exports to Europe, however the Group's Chelyabinsk Pipe Rolling Plant (ChTPZ) would boost output 20%.
Russia increased steel pipe output 4.7% YOY in January to September to 4.9 million tonnes.
Venezuela government increases iron ore price by 58% for Sidor
The Venezuelan government increased by 58% the price at which it sells iron ore to Sidor. State run mining company Ferrominera will now sell iron ore to Sidor at US$30 a metric ton, up from the previous price of US$19 a ton.
Venezuelan President Mr Hugo Chavez has also said his government will consider buying out Sidor unless it offers steel at lower prices to local businesses before selling it abroad. Mr Chavez had complained that the government has been selling Sidor iron ore at below market prices while the mill has been exporting about half its output.
Sidor, which expects to produce 4 million tons of steel in 2005, exports to dozens of countries, including the United States, Mexico, China and Colombia. The company is jointly owned by Siderar, Mexico's Hylsamex SA, Venezuela's Sivensa and Brazil's Usiminas.
PolyMet takes ownership of Minnesota ore processing plant
PolyMet Mining Corp announced that its US subsidiary has completed acquisition of selected parts of the former LTV Steel Mining Company ore processing facilities in northeastern Minnesota that were optioned from Cliffs Erie LLC, a subsidiary of Cleveland-Cliffs Inc, as originally announced by news release dated September 14, 2005. Closing on the asset purchase agreement was completed today by the parties in Minneapolis, Minnesota.
The plant assets now owned by PolyMet include crushing, milling and flotation capacity, complete spare parts, plant site buildings, real estate, tailings impoundments and mine work shops, as well as access to the extensive mining infrastructure near Hoyt Lakes, Minnesota.
"Acquisition of this large complex provides PolyMet with about 80 to 85% of the physical plant assets needed to develop the NorthMet Project. Moreover, this acquisition will save nearly US $200 million in capital development costs," said Mr William Murray, PolyMet's president and CEO
PolyMet Mining Corp is a Canadian mine development company that is developing the NorthMet deposit near Babbitt, Minnesota, one of the world's largest undeveloped base and precious metals resources.
Mittal Steel to transfer 50% of cost of Krivorozhstal by November 27
Mittal Steel will transfer 50% of the amount, proposed by it for the 93.02% share holding of Krivorozhstal OJSC, till 27 November according to a statement from Ukrainian State Property Fund chief Valentyna Semeniuk to local press
She noted that the second part of the tranche will be channeled by Mittal Steel in terms, fixed in the current legislation.
ICG acquires Kentucky Coal Company
Mr Wilbur Rosss International Coal Group Inc ICG has announced the acquisition of Pikeville, Ky based Greymont Mining Corp without disclosing the terms of the sale.
Greymont holds about 15 million tons of coal reserves near Raven, Ky., and the right to acquire mining permits. The Raven complex is expected to produce about 1 million tons of coal a year when it reaches top capacity in 2007. Production is expected to begin next spring.
Mr Ross last year bought most of Horizon Natural Resources Co once the nation's fourth largest coal company for $786 million, after a US bankruptcy judge ruled that Horizon did not have to honor union contracts that guaranteed benefits for the miners. Mr Ross added Anker Coal Group Inc and CoalQuest Development LLC to form ICG.
Nornickel boosts revenue over the nine months.
Norilsk Nickel reported revenue of 123.191 billion rubles over the nine months of 2005, up 5% from the same period a year ago. Revenue from steel sales raised to 118.774 billion rubles versus 112.802 billion rubles and pretax profit fell to 54.929 billion rubles from 55.097 billion rubles. However net income reduced by 1.18% to 39.427 billion rubles from 39.898 billion rubles.
MMC Norilsk Nickel is the world's largest producer of nickel and palladium and one of the largest producers of platinum. Its market share exceeds 10% of cobalt and 3% of copper production worldwide. Domestically, MMC Norilsk Nickel holds close to a 96% market share of nickel, 55% of copper and 95% of cobalt production.
Norilsk Nickel is one of the leaders in the Russian economy, its enterprises account for 4.3% of the Russian export. The share of Norilsk Nickel in the Russia's GDP is 1.9%, and 2.8% in the industrial output of the Russian Federation, that is 27.9% of the non-ferrous industry
NSW Government approves major steelworks upgrades
The New South Wales Government has granted approval for two major upgrades at the Port Kembla steelworks, on the state's south coast, worth a total of $232 million.
Planning Minister Mr Frank Sartor has granted approval for a $154 million re-line to the number five blast furnace and also a $78 million upgrade and expansion of the cold mill and pickle line subject to a range of environmental conditions
Evraz Group SA completes acquisition of Vitkovice Steel
Evraz Group SA, one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, today announces the completion of the acquisition of 98.96% of the shares of Vitkovice Steel, the largest plate maker in the Czech Republic, for approximately 240 million.
The acquisition is in line with Evraz Groups stated strategy to achieve growth through focused acquisitions of re rolling assets outside Russia. Leveraging Vitkovice Steels position as a producer of high quality steel plate, Evraz will seek to increase its market share and to secure its client base, as well as to capture additional margins from the sale of higher value-added steel products in the European market.
The acquisition was financed by a combination of debt and cash. The debt finance was provided by a bank consortium led by ABN AMRO NV and Commerzbank OSINEK AS, a 100% subsidiary of the National Property Fund of the Czech Republic, acted as the seller. ABN AMRO N.V. served as a financial advisor.
Mr Alexander Abramov, Evraz Group Chairman and CEO said, We are very pleased with the completion of the acquisition of Vitkovice Steel, one of the largest steel enterprises in the Czech Republic. We believe that the integration of Vitkovice Steel into Evraz Group will contribute to its development into a world-class business.
SA firm buys 51% stake in Australian subsidiary
Australia based Mineral Commodities has signed an agreement with SA Ehlobo Heavy Minerals EHM that will lead to EHM paying a purchase consideration of R 10 million and committing to fund up to R 35 million for a 50.5% interest in MRC's South African project owning company MRC Resources.
This is significant step forward for the development of the Xolobeni and Tormin Mineral Sands Projects.
The sole shareholder of EHM is Umcebo Holdings, which is 100% black owned and controlled, with 30% of its shareholding being held by broad-based women groupings. Umcebo Holdings also holds the majority shareholding in Umcebo Mining and both Umcebo Holdings and Umcebo Mining are involved in and have interests in mining activities in the Witbank Coal Basin, with major deposits in the Wonderfontein and Delmas areas of South Africa.
The formation of this alliance with EHM, will establish MRC Resources (Pty) Ltd as a fully compliant black economic empowerment company. BEE compliant is a pre-condition to obtaining mining right approval under the South African Mineral and Petroleum Resources Development Act and the Charter.
Arch Coal closes West Elk mine due to increased gas content
Arch Coal has announced that its West Elk coal mine in western Colorado will be shut down for at least six weeks after combustion-related gases suddenly increased at the site last week. The West Elk mine typically produces more than 6 million tons of high quality thermal coal a year. Arch Coal said that the mine expects to deplete its current inventory of coal that's ready for shipment by the end of November.
"After making good progress in our initial efforts to suppress the heating event at West Elk, combustion-related gases unexpectedly intensified late last week. As a result of this increase, we were forced to shut down the mine's ventilation system and commence more aggressive measures to control the situation," said Mr John W. Eaves, Arch Coal's executive VP and COO
West Elk is increasing its injections of water, nitrogen, nitrogen foam and carbon dioxide into the affected area via bore holes at the surface. West Elk personnel are working closely and cooperatively with Mine Safety and Health Administration MSHA officials at the site. Through the event, the mine has not had any reportable injuries. "The top priority of both Arch and MSHA is to ensure the safety of the West Elk workforce engaged in addressing the situation," Mr Eaves said
St. Louis based Arch Coal is US's second largest coal producer, with subsidiary operations in West Virginia, Kentucky, Virginia, Wyoming, Colorado and Utah. Arch provides the fuel for approximately 7% of the electricity generated in the United States.
Asia Energy to commence coal mining at Phulbari
Asia Energy PLC, a London-based coal mining company has announced the appointment of Mr Gary Lye to its Board as ED and COO of the Company to broaden the top management team in preparation for the commencement of mining at its Phulbari Coal Project in Bangladesh. Mr Lye has been working on the feasibility study for open pit mining of the Phulbari coal deposit in Northwest Bangladesh for the past two years. He is currently CEO of Asia Energy PLC's subsidiary, Asia Energy Corporation (Bangladesh) Pvt Ltd, and he will continue to maintain this position.
"Gary's promotion reflects the key role he has played in producing the feasibility studies for the Phulbari Coal Project," said MD of Asia Energy PLC's Mr David Lenigas. "He will bring to the board additional expertise in open pit mining and a focused understanding of the operational issues in Bangladesh."
Exploration drilling has confirmed a resource at Phulbari of 572 million tonnes of high quality bituminous coal, and, in line with its Exploration and Mining Contract. Asia Energy submitted a Scheme of Development and Feasibility Study for the mine to the Government of Bangladesh on October 2. Asia Energy has also submitted a proposal to build a 500 MW coal-fired power plant at the mine site. With agreement from the Government of Bangladesh, Asia Energy plans to begin mining activity early in 2006, leading to first coal in 2008. Parallel development of the power plant would see coal-fired power generated by 2011.
Takeover Panel tells Glencore to pay up in Austral case
Investors who sold their shares in Austral Coal before Swiss trader Glencore revealed its strategic stake in the company may still receive compensation as the Takeovers Panel has upheld its decision that Glencore's failure to disclose its interest in the New South Wales coal miner constituted "unacceptable circumstances". If Glencore accepts the decision, Austral shareholders who sold scrip on market between March 22 and April 4 will receive a cash payment of about 5 a share.
In a new ruling yesterday, the panel reiterated its earlier finding that Glencore should have revealed its 12.5% stake in Austral earlier. The holding was built largely through equity swaps with two investment banks. But having lost an appeal to Glencore in the Federal Court, the panel backed away from an earlier decision that would have required Glencore to offer to sell back Austral scrip, instead, it ordered the Swiss company to pay about $1.3 million in restitution to shareholders who sold their Austral shares during the period of non disclosure.
The Glencore case has sent a clear warning to companies about using equity swaps to conceal major holdings during a takeover bid.
Centennial Coal, which is unable to move to compulsory acquisition of Austral because of Glencore's blocking stake, said last night it would not extend its bid beyond Monday. Centennial has about 86% of Austral and has taken control of its Tahmoor coal mine.
Genesis equipment making division sold to Mitsubishi Hitachi JV
Genesis Worldwide II Inc. has completed the sale of its GFG subsidiary to a JV of Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. Genesis Worldwide II is a holding company for Herr Voss Stamco, a designer & builder of coil processing lines and a provider of mill roll reconditioning services, equipment refurbishing, spare parts, and services. GFG designs and manufactures roll-coating equipment and lines, and electrostatic oilers supplied under the Peabody name.
Mr Walter Stasik, CEO and president of Genesis II, stated Mitsubishi-Hitachi Metals Machinery is a company best positioned to capitalize on the strengths of GFG internationally. The Herr-Voss Stamco subsidiaries of Genesis II look forward to cooperating on future projects with Mitsubishi-Hitachi Metals Machinery and GFG that bring together the worlds best technologies for processing flat rolled metals.
BNSF announces Sales and Marketing appointments
Several sales and marketing assignments at BNSF Railway Company were announced today by John Lanigan, BNSF's executive VP and chief marketing officer.
Mr George Duggan becomes BNSF VP for Domestic Intermodal reporting to Mr Steve Branscum, Group VP Consumer Products. Mr Duggan began his railroad career with the Missouri Kansas Texas Railroad Company in 1978 in their management training program and later joined Burlington Northern Railroad Company as a grain specialist. After the creation of BNSF, in 1995. Mr Duggan became GD for the Coal, Metals and Minerals business unit and subsequently for the Chemicals business unit and was appointed as VP in 1998
Ms Katie Farmer is promoted to VP Industrial Products Sales reporting to Mr Dave Garin, Group VP Industrial Products. She has held a variety of positions in sales and marketing with the Chemicals, Plastic and Minerals business units as well as positions in finance, customer solutions and network operations. In 1998, Ms Farmer was promoted to director, plastics marketing and in 2001, she was promoted to general director, chemical products sales.
Mr Rick Margl is appointed as assistant VP Service Performance reporting to Mr Dennis Johnson VP Business Unit Operations and Support. Margl has been in his present position since 2001. He began his railroad career in 1984 with BN as an analyst in the Forest Products business unit. In 1987, he became an assistant trainmaster and in 1988 advanced to terminal trainmaster. Margl was promoted to director, service measurement in 1994; director of freight equipment, Merchandise business unit in 1996, and to general director, merchandise service analysis in 1998. He was promoted to assistant VP measures and profitability in 2000.
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States.
Consol Buchanan coal mine repairs delayed
Consol Energy Inc on Monday said repairs to a damaged skip hoist at its Buchanan coal mine in Virginia may not be complete until mid December, compared with an earlier November target.
The skip hoist, a device that lifts coal from underground to the surface, was damaged in an accident on Sept. 16, forcing the mine to suspend coal production. The hoist, housed in a concrete shaft, is about 1,780 feet high. It turns out the lower level of the shaft and skip-hoisting structure will need to be replaced, rather than repaired, as was originally expected. Consol said it needs more time to install the replacement structure.
The Buchanan Mine produces about 400,000 tons per month of low volatile, metallurgical grade coal that is sold to domestic and international steelmakers. Consol said the force majeure provision of its sales contracts has been invoked while the mine is idle.
Consol reaffirmed its coal production forecast for 17 million to 18 million tons for the quarter ending December 31.
Australian Continental Coal expects rise in profits
Centennial Coal Company Ltd says it expects a significant rise in net profit this financial year despite production problems at its Newstan Mine. The mining firm first flagged geological problems at the site, located near Newcastle in NSW, earlier this year, which will see raw coal production reduced to around $2.4 million tonnes in 2005 -06.
The firm said it plans to increase production levels at Austral Coal's Tahmoor mine - which will make the largest contribution to its 2006 profit - after taking operational control of Austral in April.
But chairman Mr Ken Moss said the first half of the financial year was also historically weaker largely due to the timing of "longwall changeovers", which involves shifting mining machinery. "In the 2006 financial year we expect the result to again reflect this historical pattern, especially as the first half has been significantly overshadowed by the impact of the Newstan production issues," Mr Moss told the company's annual general meeting. "Overall, we remain confident that the 2006 financial year profit will be significantly above that of the 2005 financial year."
Centennial posted a $15 million net profit in the previous corresponding first half and a full year net profit of $35.9 million in 2004-05.
