December, 16 2005
TATA Steel to acquire 55% stake in Thailands Millennium Steel
TATA Steel has announced signing of an agreement with Cementhai Holding Company of Thailand for acquiring 55% stake in Thai Millennium Steel at a cost of $ 130 million. The transaction is subject to all regulatory approvals in Thailand and India as well as shareholders of Millennium Steel
After acquiring Cementthais holding in Millennium Steel at around $ 70 million, TATA will infuse another $ 58 to $60 million towards payment for fresh issue of equity shares equivalent to 24.99% in the expanded capital of Millennium Steel within March 31, 2006, TATA Steel MD Mr B Muthuraman told media. For the balance shareholding which is with the public, we propose to make an open offer, subject to certain conditions, at Baht 1.15 per share, he said.
Sponge iron units decide to shut down by January 10
Faced with the rising costs of iron-ore and lack of coal linkage facilities, the about 300 sponge irons units in Orissa, Jharkhand, West Bengal and Chhattisgarh have decided to shut shop to pressurize the Centre and State governments to set things right. The decision was taken at the meeting of Sponge Iron Manufacturers associations of four states who described the cartel of private mine owners as the culprit and demanded setting up of an iron-ore regulatory mechanism.
While the units of Chhattisgarh have stopped procuring iron-ore from December 10 and would stop production from December 20, such units in West Bengal and Jharkhand will start closing down from December 30 and Orissa from January 10
Gangavaram Port achieves financial closure
A Consortium of 13 Banks led by State Bank of India have committed long term senior & subordinate loans aggregating Rs11.7 billion to Gangavaram Port Limited, a special purpose company promoted by DVS Raju for developing and operating Gangavaram Port. The financing documentation for the loans was completed recently.
Gangavaram Port will be developed in 3 phases over the next 15 to 20 years with a cargo handling capacity of over 100 million tonnes per annum. The Phase I development comprises 5 berths and associated infrastructure for handling iron ore, coal and other bulk and general cargo and will be operational by the end of 2007. Gangavaram Port will be the deepest port in the country with facilities to berth and handle super cape size 200,000 DWT bulk carriers. The Port will be an all weather, multi purpose port with excellent hinterland rail/road connectivity, vast storage areas, and very high levels of mechanization in cargo handling, thus providing, considerable savings in the integrated logistics cost to the port users.
State electricity boards owe Rs 1879 crore to CIL
Total sum outstanding undisputed dues as reported by Coal India Ltd as on November 30, 2005 provisionally amount to Rs 1,879.67 crore and Minister of State for Coal Dr Dasari Narayana Rao informed parliament that the Ministry of Coal and Ministry of Power jointly appoint umpires to settle the disputes between SEBs and the coal companies of CIL.
He also informed that due to the shortage of OTR tires, the production program of CIL for executing the target of 343 million tonnes of coal production is likely to be effected
Belaz in search of a JV partner in India for mining equipments
Byelorussian Autoworks Belaz, a mining company of Belarus, is looking for a JV partner for making mining and road construction machinery and is currently in the process of short listing one of them said Mr Oleg N Laptenok, ambassador of Republic of Belarus in India while speaking at a session organized by the Bengal National Chamber of Commerce and Industry. He added that thereafter Belaz will invite the Indian partner to visit their plant in Belarus
Belaz is engaged in manufacturing open-cast mining equipment and has a range of products including mining dump trucks. The company also makes road-construction machinery, special equipment for metallurgical industry and underground transport facilities.
Ind Synergy expanding steel presence to Maharashtra
Mr Satish Goel Chairman of Ind Synergy Group has announced signing of a MoU with Maharashtra Government for setting up an integrated steel and power plant at Gadchiroli District in the Vidarbha region of Maharashtra. The announcement indicates the capacity of 600,000 ton per annum of sponge iron, 500,000 ton per annum of rolled steel products along with a 98 MW Captive Power Plant The proposed site selected has both raw materials coal and iron ore available in abundance within a 25 kilometers range.
Ind Synergy Ltd, having strong presence in edible oil area, already has a steel complex operational in Raipur having capacities of 300,000 MT for sponge Iron, 200,000 of steel billets and 100,000 Mt of structural. The company is putting up another expansion in alloy steel by further investment of Rs. 933 crores at the same plant in Raigarh.
India zinc prices may rule firm next year
Zinc prices are likely to be buoyant for another year in view of strong demand, especially from the infrastructure sector. "Plenty of infrastructure projects are on now. All these require zinc, which is used for galvanizing. Zinc will be in demand for telecom towers and cable trays in power projects," said Mr L Pugazenthy ED of India Lead Zinc Development Association ILZDA.
Zinc prices have increased over 60% during the year from Rs 50 a kg to Rs 83 currently. The rise in prices can also be attributed to the global trend, which has been witnessing a bull run in all metals. On LME, zinc prices hit a 16-year high this month and are currently ruling at $1,790 a tonne, while the average price for this year is $1,370.
"Metal availability will be no problem. Our domestic production is set to increase this fiscal said Mr Pugazenthy. The consumption could exceed 0.45 million tonnes as it is likely to witness a 10 to15% growth annually in the next couple of years. The gap in supply-consumption is met through imports and recycling.
Most of the zinc consumed in the country is used for coating of steel to produce galvanized sheets and coils
Jaypee plans 1000MW thermal power plant in Sidhi
Cement and energy giant Jaypee Group is setting up a thermal power plant in the coal rich Sidhi. The proposed 1000 mw thermal power plant, with an investment of about Rs 4000 crore, is coming up on the Amelia North Coal Block of Sidhi.
MP government has decided to give the block to Jaypee Associated Limited, after scrutiny of bids against tender for the thermal plant. The letter of intent has already been issued to JAL and the state government has also received a formal proposal from the company. A JV would be signed soon between the Madhya Pradesh State Mining Development Corporation and JAL.
AK Steel announces January 2006 surcharges
AK Steel has advised its flat rolled carbon steel customers that a $215 per ton surcharge will be added to invoices for products shipped in January 2006. AK Steel has also advised its electrical steel customers that a $255 per ton surcharge will be added to invoices for electrical steel products shipped in January 2006.
AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the November 2005 purchase cost used to determine the January 2006 surcharges.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
Siemens VAI to supply pickling line to Zaporizhstal
The Siemens Group Industrial Solutions and Services have received a contract from Zaporizhstal JSC for the supply of a new continuous-pickling line at the company's steel works in Zaporozhje, Ukraine. The pickling line will have a nominal pickling capacity of 1.35 million tonnes and start-up of the new plant is scheduled for June 2008.
The project scope includes the engineering, supply and installation of mechanical, electrical (Siemens components), chemical, process-control and automation equipment and systems in addition to advisory services for erection, start-up and commissioning. The plant will be fully automated and a high degree of pickling efficiency will be assured by the application of turbulent pickling-acid injection.
Zaporizhstal JSC is an integrated iron and steel works with a production capacity of approximately 3.3 million tonnes of hot metal and 4.4 million tonnes of liquid steel.
ACCC approves BHP-JFE iron ore JV
BHP Billiton Ltd has won draft approval from the competition watchdog for its iron ore JV with JFE Steel Corporation. Under the JV, BHP Billiton retains a 68% stake in the Western Four deposit at BHP Billiton's Yandi iron ore mine in Western Australia, alongside the miner's existing JV partners ITOCHU Minerals & Energy of Australia and Mitsui Iron Ore Corporation and JFE will take a 20% stake in the Western Four deposit
The joint venture plans to ship 16 million tonnes of iron ore a year to JFE Steel for at least 11 years.
Arcelor - new stage in its development
To start a new stage in its development, Arcelor adapts its organization, under the management of Guy Doll CEO, leading a more compact Group Management Board. During its meeting held on 15th December, the Board of Directors approved the strategy and the resources for its implementation presented by the Group Management Board.
By its creation, and in the four years elapsed since then, Arcelor has substantially contributed to the acceleration of the evolution of the steel industry. Arcelor now starts a new stage in its development with the ambition to be a leader in this industry and to continue its healthy growth. In order to achieve the Group's ambitions, the Board of Directors has decided to adapt Arcelor's initial organization with the aim of increasing flexibility and enabling our businesses to adapt faster to the globalization process, which has only just begun.
The new mode of operation, which streamlines the initial structure based on large sectors, will lead to greater responsibility for the managers. The Business Units, fully responsible for their financial results, will report directly to the Group Management Board. Each of these activities will be monitored by a Senior Executive Vice-President, representing the Management Board, who will be supported by the common resources of the corporate structure.
At the proposal of the Appointments and Remuneration Committee, the Board of Directors has decided the following appointments, effective as of 1st January 2006. The composition of Arcelor's Management Board would have Mr Guy Dollas President of the Management Board & CEO, Mr Michel Wurth as Vice-President of the Management Board, Mr Roland Junck as Senior Executive Vice-President and Mr Gonzalo Urquijo as Senior Executive Vice-President and Chief Financial Officer
Mr Guillermo Ulacia will leave the group on 31st December 2005 to take on an important responsibility in Spain. Mr Jacques Chabanier has chosen to continue his career in other fields and will leave the group on 1st April 2006.
The Board of Directors has appointed three Deputy Senior Executive Vice-Presidents including Mr JosArmando Campos responsible for the flat products activities in Brazil and CEO of Arcelor Brasil, Mr Christophe Cornier: responsible for the flat products activities in Europe and for the automotive sector worldwide and Mr Carlo Panunzi responsible for long products activities in South America and Vice CEO of Arcelor Brasil.
Shandong confirms plan to buy 19.9% of Cape Lambert stake
Chinese group Shandong Yuansheng International Trading Co Ltd has confirmed its intention to take up almost 20% equity in Cape Lambert Iron Ore Ltd through the purchase of securities on market.
The acquisition of up to 19.9% equity was a condition Cape Lambert had set as part of an agreement reached with Shandong to have "first right of refusal" to negotiate an off-take agreement at the Cape Lambert Iron Ore Project, located in the Pilbra region of Western Australia.
Shandong had previously agreed to acquire an equity stake in Cape Lambert via the recently closed A$33 m raising, but was unable to do so due to due diligence and funding arrangements not being finalized by the close date.
Negotiations between Cape Lambert and Shandong regarding an off-take agreement at the Cape Lambert Project are on-going with Cape Lambert confident of a resolution in the New Year. It is expected the project will come on line in late 2009, with production likely to be between five and ten million tonnes per annum.
Construction of slab plant at Cearstarts in Brazil
It is reported that the Construction has started on the Cearsteel plant in northeast Brazil's Cearstate. The US$750mn project, now called CearSteel, was originally known as Usina Siderrgica do Cear(USC).
CVRD will be Cears exclusive pellet supplier and will have a 9% stake in the project, while South Korean steelmaker Dongkuk Steel will hold 34% and Italian metal industry supplier Danieli Steel will have 17%. Brazil's national development bank BNDES holds a 40% piece of the project.
CearSteel's capacity will be roughly 1.5 million tonnes of slabs and the plant is expected to come on stream in 2009
China plans to eliminate 100 million tonne steel capacity by 2010
China plans to eliminate 100 million tons of steel making capacities in the 11th Five Year Program period during 2006-2010 to control annual steel production capacity at about 400 million tons, according to the National Development and Reform Commission NDRC
The NDRC Industry Department has put forward a circular on controlling aggregate capacity, eliminating backward capacities and speeding up industrial restructuring of the steel industry. Specific macro control measures for the industry are to be developed.
The main measures mainly include controlling aggregate production capacity, eliminating backward production capacities, supporting technological renovation and innovation, encouraging mergers and acquisitions of steel enterprises, strengthening industry self-disciplines, and striving for steady progress.
Corrigendum STT Dec 14 - Chinese coalmine accidents kill more in 2005
At least 206 more workers were killed in Chinese mines by December 11 in 2005 year than in the same period during 2004 ..
The typographical error is regretted
British Network Railway finalizes long term contracts for rails
It is reported UKs Network Rail NR has finalized long term contracts for purchase of over 100,000 MT of rail a year with two suppliers and is in final negotiations with a third one. The two suppliers are reported to be Corus and Voestalpine
Mr Iain Coucher NR deputy CEO, said: Were carrying out a huge amount of work in the years ahead in a bid to rebuild Britains railways. This challenging task is well underway and these new steel contracts will ensure that we have a quality product that will help us to modernize our network.
Coal supply from Shanxi to reduce by 100 million tonnes
China's major coal producer Shanxi Province is likely to reduce coal supply by more than 100 million tons next year, according to the provincial department of the coal industry. Main reasons for the reduction are the close of many mine shafts due to unsafe production, the fight against illegal mining of coal and more efforts to curb overcapacity.
This year, the province has cut down the number of mine shafts by 30% To 1,200 resulting coal production drop by 80 million tons. In addition the fight against illegal mining and over exploitation of coal mines involves coal production of 30 million tons.
Yemen Al Goss planning to set up a steel complex in Aden
Yemens Al-Goss has announced plans to construct a 0.5 million tonnes integrated steel mill with rebar and wire rod mill in the port city of Aden. It plans to install steel complex, which will be able to produce 8 to 24 mm rebar and a smaller quantity of wire rod.
Al Goss, a family owned trading group, is one of the leading steel importers of steel in Yemen. The company supplies between 100,000 and 120,000 tons of rebar and wire to the growing construction market in Yemen.
Salzgitter Flachstahl develops environmental management system
Salzgitter Flachstahl is gradually developing its environmental management system according to the international standard DIN EN ISO 14001. The coking plant, sintering plant, coil-coating line, annealing shop, skin-pass mill and associated maintenance work, the water and wastewater system, inventory management, recycling and waste management, as well as the technical services, already have a certified environmental management system in place.
Certification involves assessing not only the environmental impact of the activities of Salzgitter Flachstahl itself, as provided for by amended standard ISO 14001, but also that of the suppliers working for the company.
An audit carried out by T Nord in November 2005 assessed the functionality of the environmental management systems of the power station, push-pull pickling line, melting plant with converter, the ladle treatment plant, ladle management and raw materials management together with the associated maintenance work, as well as the transport and traffic areas.
SA Humboldt to supply screen for washing plant at Russian coal mine
Humboldt Wedag South Africa has won a contract to manufacture two 3x6 meters USLD double deck screens for installation in a dense media separation coal beneficiation plant built by KHD Humboldt Wedag GmbH Germany at Listwjaschnaja Mine in Russia. They are scheduled for delivery in March 2006. Apart from its internationally available screens, Humboldt Wedag South Africa manufactures and supplies a broad range of specialist jigs, crushers and separators.
TopGerdau expects Sidenor acquisition approval by December end
Brazilian steelmaker Gerdau expects EU regulators to approve its November 15th bid for Spain's Sidenor steel group within next two weeks
Gerdau and Spanish bank Santander agreed to acquire 40% each of Sidenor in a deal worth Euros 444 million ($535 million). The remaining 20% would go to Sidenor executives. In addition Sidenor owns 58% of Brazilian steelmaker As Villares and after Gerdaus acquisition of Sidenor 23% of As Villares would go to Gerdau, 23% to Santander and 11% to Sidenor executives.
The acquisition gives Gerdau an opening to the EU market, where Sidenor focuses on the automobile industry, according to the Brazilian steelmaker. Gerdau is the largest producer of long steel in the Americas. The company has operations in Argentina, Brazil, Canada, Chile, Uruguay and the US.
Datong to build nine coal transportation routes
The Datong Development and Reform Commission have submitted a feasibility report to the provincial government to construct nine coal transportation routes. "These nine lines will connect 115 coalmines in Datong City, each with an annual output of at least 150,000 tons, with trunk highways including the Beijing-Datong line and the Datong-Tanggu line," an official with the NDRC Datong told
The nine lines, totaling 269.3 kilometers, will cost RMB 1.26 billion ($155.55 million). The plan will add over 25 million tons of coal transportation capacity to Datong, regarded as one of the major coal producing region of China, forming a total capacity of 55 million tons.
UK Coal making profits after a decade
UK Coal, which owns the former assets of British Coal, said that its deep mines returned to profitability in the three months to November, helped by higher selling prices and new working practices. The Doncaster-based business has seven deep mines, two of which are due to be mothballed next year. The company's deep mines are at Daw Mill near Coventry, Kellingley and Maltby in Yorkshire and Thoresby and Welbeck in Nottinghamshire.
A spokesman said UK Coal's deep mines were last profitable in the mid-1990s and the portfolio made losses of 37.8 million in 2004, following a drop in output to 12 million tonnes. UK Coal said its five continuing deep mines were expected to return to overall profitability in 2006, although this was dependent on the continuation of trading conditions experienced in the latter part of this year.
UK Coal also said surface mining made underlying profits of 200,000 in the five months to November, compared with losses of 2.2m a year earlier.
Mr Charles Kernot a mining analyst at broker Seymour Pierce believed profitability should be maintained until the end of 2009, when existing coal sales contracts expire but he warned: "As we doubt that future international prices will be as high as have been achieved over the past 12 months, UK Coal's future profitability will remain dependent on future cost reduction."
Foundation Coal appoints Mr Kurt Kost as senior VP
Foundation Coal Holdings Inc announced that its board of directors has appointed Mr Kurt Kost to serve as senior vice president, western operations and process management, effective December 7, 2005. He will report directly to president and CEO Mr James F. Roberts
The promotion underscores Mr Kost's key role in supporting the company's business strategy of improving shareholder value through low-cost operational performance and providing high-quality products, while maintaining environmental and safety excellence.
Previously, Mr Kost served as vice president, process management for Foundation Coal Corporation to oversee key continuous improvement processes. In this role, Mr Kost helped guide the company's Wyoming operations to an unprecedented third quarter level of 11.5 million tons shipped, adding to the company's 11 percent overall increase, resulting in an exceptional 33% third quarter revenue boost to $335.5 million.
Wheelabrator fabric filters for Gerdau Ameristeel
Wheelabrator Air Pollution Control Inc, a subsidiary of Siemens Power Generation, has been contracted to supply fabric filter systems to Gerdau Ameristeel's mini-mill in Baldwin. Groundbreaking will take place in February and project completion is on target for September 2006.
Wheelabrator will design and supply 16 modular JET VIP intermediate pressure pulse fabric filters, outlet ductwork, fans, motors, controls, and a stack. The filter systems control particulate emissions from EAF off-gas. At peak capacity, the systems will filter metallurgical dust and fumes at 1 million ACFM.
JET VIP fabric filters treat large gas volumes in a limited space, and feature continuous, on-line filter bag cleaning using Wheelabrator's "tuned" system for low emissions and long bag life.
SKF to shed 150 jobs in France
SKF AB said its fourth quarter will incur restructuring costs of SKR 190 million after it decided to cut 150 jobs at its ball bearing plant in Fontenay le Comte, France. The company said the cuts are due to the movement of its customers from West to East Europe and to Asia, and their decisions to have local suppliers. This has resulted in lower demand for products from the Fontenay le Comte plant.
SKF also said it is to rationalize its group divisional structure by integrating its Aero and Steel division, and its Electrical division into other divisions from Jan 1 2006. The development, manufacturing and sales of bearings, seals and airframe components for the aerospace industry, which are part of the Aero and Steel Division, will be moved to the Industrial Division. The forging operations, that also are part of this division, will be transferred to the Automotive Division. The development, manufacturing and sales of small ball bearings and bearing seals, that are part of the Electrical Division, will be transferred to the Automotive Division.
