January, 15 2006
Tribal raise battle cry against MCL
Tribal ousted by Mahanadi Coalfields Limited MCL have raised the banner of revolt after the incidents at TATA Steels project at Kalinga Nagar and at SAILs Rourkela Steel Plant. The oustees of MCL have given an ultimatum to go for economic blockade from January 16 in support of their legitimate demands.
They have been demanding adequate compensation, home and employment for the members of the displaced families in accordance with the decision of the Rehabilitation Advisory Committee chaired by the Northern Division Revenue Divisional Commissioner. If the demand were not taken into consideration before January 15 next, we would be forced to resort to economic blockade from January 16, Congress MLA Mr Anup Sai from Brajarajnagar said.
Orissa Chief Minister Mr Naveen Patnaik has urged Prime Minister Dr Manmohan Singh to intervene and resolve the displacement problems. In a letter to the Prime Minister, Mr Patnaik said state government had been facing the wrath of the aggrieved people, displaced by the MCL even though it has nothing to do with the land acquisition by the MCL. He urged the Prime Minister to direct the Coal Ministry to look into the displacement problem and take all possible steps to sort out the problems of the displaced people.
Smaller ports in Maharashtra gearing up to handle coal imports
It is reported that several smaller ports such as such as Dharamtar, Dahanu, Revdanda and Dighi dotting the coastline of Maharashtra are reportedly gearing up to develop dedicated coal handling facilities because the Major Ports are busy grappling with draught problems and prefer to handle clean cargoes as coal handling leaves fine layers of coal dust spread all over the port premises, which may well soil other types of cargo.
At present, Mumbai Port handles Panamax vessels with capacities between 68,000 and 73,000 DWT at the anchorage. The coal discharged at the anchorage is transported in barges to Haji Bunder jetty. These barges only operate in the hours of tide waters owing to insufficient draught at Mumbai Port. The Port also faces the challenge of pollution from handling coal.
Imports of thermal and coking coal are expected to rise as the domestic availability of good quality coal is limited and accordingly Dharamtar and Dahanu are developing coal handling facilities, while Dighi is developing one dedicated coal berth out of its five proposed multi-purpose berths.
Jharkhand putting iron ore mines data on web for investors
It is reported that a team of state mining ministry traveled across the West Singhbhum district, where almost all the iron ore mines are located, during December and have collected all relevant information about the iron ore mines operating in the state, from the leases that have been granted to the present excavation in the mines. The Government plans to put this data on the web so as to help the investors.
Mines minister, Mr Madhu Koda said: It is essential for the ministry to know the smallest details of the operations in the 44 mines functioning in the district. The team has inspected the mines and would submit its report to the ministry by early February.
Insiders in the ministry admitted that so far the ministry had not kept a close track of the iron ore mines and the operating in them as there wasnt much demand for the mineral in the domestic or the international markets. But today, the situation has changed a lot. These details would help the state government when the investors, who have signed MoUs in the steel sector, apply for mining lease, informed a senior official of the mines ministry.
Haldia Docks sets new records in nine months
Haldia Dock Complex HDC, one of the two docks of Kolkata Port, has set new record of handling of 31.1 million tonnes of cargo during April to November 2005, registering a growth rate of 17.58% over corresponding period of last year. The growth rate in handling of HDC is the highest among all major ports in India. 1761 vessels were handled at HDC during the nine months.
The major commodities handled at HDC during this period included 5.974 million tonnes of iron ore and 3.986 million tonnes.
Monthly record created during the nine month period include 3.63 million tonnes of total cargo handled in November 2005, 0.827 million tonnes of iron ore in September, 0.644 lakh tonnes of coking coal in May, 219 vessels handled in December, 40 iron ore vessels handled in August and 0.184 million tonnes of cargo handled in a day on September 8, 2005.
IOC pipeline deal to reduce business at Haldia Port
Indian Oil Corp presently imports crude for its Haldia and Bongaigon refineries via Haldia but a pipeline to connect Haldia with Paradeep Port in Orissa would be ready by May 2006 and as Paradeep can handle bigger tankers, Haldia is likely to loose business of import of crude petroleum.
During April to December KoPT handled 9.49 million tonne of crude against 9.24 million tonne in April to December last year. For the full year to March 31, 2006, the port expects to handle around 12 million tonnes, an increase of 10% on 11 million tonne handled in the previous year. Mr ML Meena deputy chairman of KoPT told that the KoPT will lose the 10-12 million tonne of crude petroleum cargo that is the mainstay of Haldia dock complex.
There is no immediate cargo that can bridge this gap, except for a projected additional 5 million tonnes of coking coal that may be handled with the TATAs Hooghly Met Coke plant starting operation. There can be no immediate projections made from the proposed chemical hub and Mitsubishis expansion, Mr Meena said.
However, the KoPT is trying to attract full load vessels with a lighterage facility at Sagar, nearer the sea, to ward off the cash crunch. At present full load vessels carrying bulk cargo for steel plants at Asansol, Durgapur, Burnpur and Rourkela call at the Paradeep and Vizag ports first for lighterage and then enter the Haldia port.
Dofasco duel - ThyssenKrupp raises bid again to C$68
ThyssenKrupp AG announced on Saturday that it was increasing its takeover bid for Dofasco Inc of Canada as it tries to beat out competition from Arcelor SA. ThyssenKrupp has agreed to increase its offer from Canadian $63 per share to Canadian $68, the companies said in a joint statement. It did not provide an overall valuation of the offer. ThyssenKrupp said it would inform Dofasco's shareholders of the higher offer Monday and extended its deadline by one day to January 26.
ThyssenKrupp CEO Mr Ekkehard Schulz said it wanted to "make it even easier for Dofasco shareholders to tender their shares to us, so that we can pool our strengths with Dofasco and grow together."
Dofasco spokesman MrGordon Forstner called the offer excellent'' and said the board supported it. Dofasco said it would also write to its shareholders, urging them to accept. The Dofasco Board of Directors also intends to mail to Dofasco shareholders on Monday, January 16, 2006, a Directors Circular unanimously recommending to Dofasco shareholders that they accept the ThyssenKrupp offer and reject the Arcelor offer announced December 23, 2005.
Mr Brian MacNeill, Chair of Dofasco's Board of Directors, said: "The ThyssenKrupp offer provides excellent value for Dofasco shareholders and is supported by the strategic value of Dofasco to ThyssenKrupp in accelerating the growth of the combined companies in North America. Dofasco's Board of Directors believes this strong offer is in the best interests of Dofasco shareholders, and we encourage them to tender their shares to the offer."
Dofasco has agreed to amend the existing Support Agreement with ThyssenKrupp and to increase the break fee payable from C$100 million to C$215 million. Under the terms of the Support Agreement the break fee becomes payable to ThyssenKrupp by Dofasco in the event the offer is not completed under certain circumstances.
ThyssenKrupp spokesman Mr Klaus Pepperhoff said Arcelor had not yet raised its offer. Arcelor has taken note of this new offer and is evaluating its options,'' Mr Luc Sheer, a spokesman for Arcelor said but declined further comments.
Russian and Japanese eying for RZD stake in Yakutia coal mines
Eight Russian and Japanese companies have expressed a firm interest in buying 29.495% of the Elgaugol coal producer, which holds the rights to the giant Elginskoye coal field in Yakutia, from Russian Railways RZD, Mr Vladimir Yakunin, the president of RZD told press. Mr Yakunin said Sumisho Coal Far East, Sumitomo, Sojitz Corporation, Elgaugol itself, Renova, Yakutugol and one other company had paid for tender documentation. Mr Yakunin also said that diamond producer Alrosa and the Mechel Steel Group had also expressed an interest, but that they needed "more time to draft their offers.
RZD will sell its shares in Elgaugol and incomplete infrastructure along the Ulak-Elga rail road at the tender, Yakunin said. Mr Yakunin also said that the shares might be sold without the tender. He said the shares could fetch at least 11 billion rubles. Officials from Yakutia's government and RZD will meet at the start of February to discuss the fate of the railway company's shares in Elgaugol.
RZD President Vladimir Yakunin also proposed forming an international consortium to build infrastructure for the Elginskoye field. "We have proposed forming an international consortium to build a rail road to Elginskoye," Mr Yakunin told. Mr Yakunin said the infrastructure of the port of Vanino must be further developed to handle coal from Elginskoye. He said that South Korea, Japan and the Republic of South Africa want to buy this coal.
The Russian Natural Resources Ministry has said that the Elginskoye field is the world's biggest in terms of proven power-generating and coking coal reserves. Commercial reserves exceed 2 billion tonnes. Elgaugol is licensed to mine coal in the field's northwestern section. RZD owns 29.295%, ZAO Eastern Construction and Contract Corporation own 28.79% and the Republic of Yakutia owns 39.365% of the company. It is said that nearly 30 million tonnes of coal could be mined from the Elginskoye coal deposit annually by 2010.
Russian President Mr Vladimir Putin has proposed forming an international consortium to develop the Elginskoye field. "An international consortium, with Russia playing the role of leading strategic investor, could be an effective form of implementing this project. It would help draw advanced technology and capital, and, concurrently, control this promising resource base," Putin told a meeting on January 6. "We must see what organizations plan to develop this deposit, and assess the size of state investment and the end result," Putin said. "If Russian Railways intends to put 2 billion of the required 2.7 billion rubles, the question arises: Where are the other shareholders and, generally speaking, do we need them at all?" he said.
Rio Tinto takes control of Hope Downs Iron Ore
Mining giant Rio Tinto has effectively taken control of the Gina Rinehart Company which is developing the $2 billion Hope Downs iron ore project through a $500 million security charge. Documents filed with the Australian Securities & Investments Commission reveal that Rio Tinto Finance registered a fixed charge with a maximum liability of $500 million over Hope Downs Iron Ore Pty Ltd on July 1 last year.
The charge provides the first insight into the confidential joint venture signed that day by Rio and Ms Rinehart's Hancock Prospecting to develop the Hope Downs iron ore deposit. Neither Rio nor Hancock Prospecting was prepared to discuss those security arrangements yesterday.
The landmark deal, which delivered Rio a 50% stake in Hope Downs and operational control of the project, involved the immediate payment by Rio of $231.4 million to Kumba Resources to buy out the South African mining group's interest in the iron ore project. The charge registered over all the assets and undertakings of Hancock Prospecting subsidiary Hope Downs Iron Ore gave Rio security for that payment to Kumba. Kumba distributed about half those proceeds to its shareholders as a special dividend.
While the Hope Downs joint venture was struck more than six months ago, the development plan submitted by Hope Downs Iron Ore is still awaiting approval from State Development Minister Mr Alan Carpenter. Those approvals will enable the Rio board to sign off on the joint venture, the financial terms of which have not been disclosed. A Rio spokesman said the government approvals were expected in the first quarter of this year, enabling production at Hope Downs to begin in early 2008.
PSMC Privatization- 5 suitors to attend pre bid conference on 16th Jan
The bidding date for the privatization of Pakistan Steel Mills Corporation is expected to be fixed at a pre bid conference of the pre-qualified bidders scheduled on Jan 16. Dr Abdul Hafeez Shaikh, Federal Minister of Privatization and Investment, will preside over the pre-bid conference of the pre qualified bidders for better understanding of the transaction and the bidding process and to respond to queries of the bidders.
The five investors which are likely to attend the pre bid conference are
1. Al Tuwairqi Group of Companies of Saudi Arabia with Arif Habib Group of Companies of Pakistan
2. Government of Ras Al Khaimah of UAE
3. International Industries Ltd of Pakistan and Industrial Union of Donbass IUD of Ukraine
4. MMK Magnitogorsk Iron & Steel Works Open JSC of Russia
5. Noor Financial Investment Company of Kuwait
The pre qualified parties have completed the due diligence of the transaction through visits to the plant, physical and virtual data room. They have also conveyed their comments to the bidding documents. All most all investors have requested that the January 16 bid date be extended by 15-30 days. While accepting the request forwarded by the investors, the Privatization Commission had delayed the deadline of January 16 and it is expected that the new bidding date would be sometimes at the end of January. An official source said that all the pre qualified bidders had been verbally informed about the expected date of bidding on January 31, 2006, but the date will be finalized in the pre-bid conference.
BHP blows a hole in State study supporting Fortescue call for sharing
BHP Billiton claims to have blown a hole in the WA Government's argument in support of Andrew Forrest's fight for access to the mining giant's Pilbara railway; revealing new studies showing State-funded research had massively overstated the potential capacity of the system. BHP also claims that allowing other companies to use its railway could cost it $1.6 billion in missed opportunities by delaying a massive expansion that could treble its iron ore exports to 300 million tonnes within 20 years. The claims are contained in fresh submissions to the National Competition Council, which is considering calls by Mr Forrest's Fortescue Metals to have the Newman railway declared a service and opened up to third party users.
In mid-2004, the Government commissioned a study by consultants Evans & Peck which found that "double-tracking" BHP Billiton's existing railway would enable the system to carry 400 million tonnes of ore a year more than enough to accommodate Fortescue's planned output of 45 million tonnes a year and "all foreseeable market demand". The study was used by the Government to support its own submission to the NCC backing Fortescue.
But BHP Billiton has since commissioned Evans & Peck to review the study, and told the NCC it had identified a massive flaw in the Government's position, which overlooked the need for trains to be loaded and unloaded. In its review, Evans & Peck conceded that "loading and unloading constraints were not considered" in its earlier research. After factoring in the time needed for loading and the limitations of the Port Hedland shipping facilities, Evans & Peck estimated the notional capacity of a dual-track railway to be just 200 to 234 million tonnes a year.
BHP Billiton said those estimates allowed barely enough capacity to cope with its own expansion plans. The company is already midway through a staged $3 billion expansion that will lift its Pilbara capacity to 152 million tonnes by mid-2010. However, BHP Billiton told the NCC it could be exporting up to 300 million tonnes of ore from the Pilbara within 20 years based on foreseeable demand.
Against that, the company said a separate study by consultants TSG found that allowing other users on its railway would cause substantial disruptions. Allowing Fortescue on to the railway would delay each of BHP Billiton's trains by three hours on average, while likely disputes between competing users could seriously delay the timing of expansions. BHP Billiton said the total opportunity cost of the subsequent delays was likely to exceed $1.6 billion.
Fortescue projects director Julian Tapp dismissed BHP Billiton's claims and said loading constraints at Port Hedland would not affect other users because they would have their own facilities at the harbour. Mr Tapp said the latest study merely indicated the potential capacity of the system with BHP Billiton as the sole user, and that Fortescue estimated a dual track system's potential capacity at over 430 million tonnes.
Coal mine blast in Romanias oldest mine kills seven
An explosion hit a state owned coal mine in Anina in Caras Severin county of Romania on Saturday at 5:30 AM, killing at least seven miners and injuring five others. Two miners are reported to be missing. The explosion occurred when methane gas leaked into the mine shaft, local police said in a statement. About 200 miners were in the shaft at the time, authorities said.
Anina coal mine is situated 250 miles west of Bucharest, employs 544 miners and is more than 1200 meters deep, making it one of the deepest mines in the region. The mine has been operational for more than 230 years and the local authorities said some 1,000 miners have died since the mine opened in 1792, the worst accident being an explosion in 1920 when 270 miners died.
Gerdau Ameristeel announces leadership changes
Gerdau Ameristeel Corporation announced that after three years with Gerdau Ameristeel, Mr Andre Johannpeter, currently COO of Gerdau Ameristeel, will return to the Gerdau Group Corporate Office in Porto Alegre, Brazil in the second quarter of 2006 as executive VP for Gerdau Group, where he will hold global responsibility for leading the Gerdau Group's processes of sales and marketing, raw materials, procurement and logistics, human resources and organizational development. Mr. Johannpeter will remain on the Gerdau Ameristeel Board of Directors.
Mr Paulo Vasconcellos, currently VP of Northeastern Mill Operations for Gerdau Ameristeel, will relocate to the Gerdau Group Sao Paulo Office in Brazil as executive VP and will hold global responsibility for the specialty steel business unit for the Gerdau Group.
Mr Michael Mueller, currently VP of the southeastern steel mill operations will become VP of all North American steel mill operations for Gerdau Ameristeel.
Gerdau Ameristeel is the second largest mini mill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products through its vertically integrated network of 15 mini mills including one 50% owned mini mill, 16 scrap recycling facilities, and 42 downstream operations including two 50% owned joint ventures.
Schnitzer to retain Cascade Steel
McMinnville based Cascade Steel Rolling Mills, has been taken off the market, President Mr Jeff Dyck confirmed. The reasons cited were major facility improvements and a new union contract that will make the mill more competitive in the global marketplace.
The mill's parent company, Schnitzer Steel Industries, announced in May 2004 that it was asking the New York investment firm Bear Stearns & Co to explore options that included sale. But back to back record profits have allowed the mill to invest more than $3 million in improvements the past two years. Management spent $2.5 million for a new electric arc furnace and around $800,000 for new water and exhaust gas evacuation systems and now the mill is on track to be producing 650,000 to 700,000 tons of products annually in the coming years.
"We're excited that Schnitzer Steel made the decision," Mr Dyck said. "Cascade Steel is a definite part of the Schnitzer team and we have a good opportunity to help out the company. It's a very good thing for Cascade Steel and its employees." He commented.
McMinnville based Cascade Steel Rolling Mills, has been taken off the market, President Mr Jeff Dyck confirmed. The reasons cited were major facility improvements and a new union contract that will make the mill more competitive in the global marketplace.
Abu Dhabi based GHC to ramp up steel output to 2million tonnes
It is reported that Abu Dhabi based General Holding Company GHC has approved a plan to augment production at its Emirates Iron and Steel Factory from 600,000 tonnes to two million tonnes per year at a total cost of $700 million. The expansion will follow a development plan adding new production lines this year which will raise the factory's production capacity by one and a half times, according to report in a daily.
It is reported that the new expansion would allow the factory to be listed within the privatization program of the factories owned by the General Holding Company as an independent company without the need for it to be merged with other companies.
Canman Mining accuses Government for sabotaging Ngwenya plans
The Directors of Canham Mining International have confirmed to the Swaziland Investment Promotion Authority that their plans for investment in the country are being sabotaged and hijacked by persons in high authority, possibly including Government officials. Canham Mining International is interested in pumping to revamp the Ngwenya Iron Ore mine, where steel will be produced, as well as setting up a Coal Thermal Power Station at Mpaka.
Swaziland Investment Promotions Authority SIPAs CEO Mr Bhekie Dlamini said as the government agency created to promote investment in the country and to attract and facilitate foreign direct investments, they are shocked by the reports. He said We continue to support these investments as they will have a great impact in turning around the economy of this country, creating employment opportunities and impacting on reversing the poverty growth trend.
Federal regulators reject petition to limit coal mining
A petition filed by environmental groups to limit permits for coal mining in the New River watershed has been rejected by federal regulators. The US Office of Surface Mining and Reclamation ruled Friday that the petition was incomplete, in part because it cited some data from before the passage of the 1977 federal Surface Mining Control and Reclamation Act and issued a 30 page response explaining its rejection. It said the petition's aim was "overly broad in scope" and didn't present adequate evidence.
The Southern Environmental Law Center filed the petition November 10 on behalf of the National Parks Conservation Association and the Warioto Chapter of the National Audubon Society. Its purpose was to force the federal government to conduct a study of the groups' claims that mining in the area is harming streams with contaminated runoff, reducing wildlife habitat and reducing the area's scenic beauty. The groups' petition covered a 284,000 acre area that includes parts of Scott, Campbell, Anderson and Morgan counties.
"OSM has failed to address our central allegation that, cumulatively, the mining in the New River watershed will adversely affect the Big South Fork," said Mr Don Barger, regional director for the National Parks Conservation Association. "In essence, they seem to be faulting us for not coming up with the information one would get by doing the study," said Deborah Murray of the Southern Environmental Law Center. Barger and Murray said the groups planned to examine the Office of Surface Mining and Reclamation's response and resubmit the petition.
Vietnamese PM directs new Vietnam Col & Mineral Group to excel
Vietnamese Prime Minister Mr Phan Van Khai has asked the newly-merged coal and mineral conglomerate to ensure national energy security and kick off exports to make it a regional giant. Vietnam government has announced the Government's decision to merge the Viet Nam Coal Group with the Viet Nam Mineral Corporation into the Viet Nam Coal and Mineral Group.
Mr Khai said based on the Industrial Ministry's estimates of the domestic demand for coal in 2020, 2030 and 2050, the group should consider investment in the nation's largest coal mine in the northern province of Quang Ninh for exports in order to retrieve capital for development. However, for a longer-term strategy, coal production should first meet the domestic demand, thus contributing to national energy security he emphasized.
The coal industry is Viet Nam's major cash earner with 2005 revenue hitting 21.5 trillion VND and contributing 1.15 trillion VND to the State budget, an increase of 50% over the year before, attributed to a 21% surge in standard coal to 30 million tonnes.
Dangote pays salary arrears to sacked workers of Osogbo Steel Mills
Following the purchase of the Osogbo Steel Rolling Mills by the Dangote Group of Companies, over 400 workers of the company were sacked and now it is reported that KURA Holdings, a subsidiary of Dangote Group of Companies has commenced the payment of the outstanding nine month salaries to affected workers.
Osogbo Steel Rolling Mills was established in 1981 and officially commissioned by former President Shehu Shagari in 1983 to produce 21,000 tonnes of long products with the uses of billet as raw materials from both Ajaokuta and Aladja steel industries. But subsequently lack of working capital, obsolete equipment and the bureaucracy of the Federal Ministry of Power and Steel effected it operation and to salvage the company, the Federal Government decided to privatize it.
It is expected that Dangote will inject substantial sum of money to put the company on sound footing as well as embarking on total over hauling of its processes.
