January, 17 2006
French warship ordered to stay off India until February
Indias Supreme Court banned an asbestos-laden French warship from entering the countrys waters before February 13, when a ruling is due on whether it can be scrapped there. Indias Supreme Court Monitoring Commission (SCMC) has given preliminary thumbs down to France this month but will issue its final recommendations before February 13.
The hearing was also attended by the new owner, Shree Ram Vessels Private Ltd, which plans to scrap the ship at Gujarats Alang ship-breaking yard.
The French decommissioned aircraft carrier Clemenceau is headed for Indias ship-breaking yards in western Gujarat state, but environmental groups have charged that the asbestos onboard will threaten workers health. Paris says the vessel is carrying 45 tons of asbestos insulation, but the firm that helped partially decontaminate it before the trip says the amount is between 500 and 1,000 tons.
Greenpeace and the group Ban Asbestos have accused France of breaching the 1989 Basel Convention banning the export of toxic waste. Greenpeace charges that the 27,000-ton warship, due to be salvaged for its steel, is full of asbestos as well as PCBs, lead, mercury and other toxic chemicals. The watchdog group says most sea-going ships end their service at ship breaking yards in India, Bangladesh, China and Pakistan, where they are cut up by unprotected workers, taking a grim toll on human health and the environment.
Jharkhand identifies Chiria mines for Mittal Steel
Mittal Steel signed an agreement with the Jharkhand government on October 8, 2005 for setting up a 10 million tonne steel plant in West Singhbhum district. It sought 10,000 acres and 600 million tonnes of mineable iron ore deposit to feed its plant for the first 30 years with an additional 400 million tonnes to be mined over the next 20 years. Mittal Steel recently sent a two-member delegation led by CEO MrSanak Mishra, to discuss the iron ore lease issue with the Jharkhand state CM Mr Arjun Munda, the state mines & geology minister Mr Madhu Koda, chief secretary Mr PP Sharma and mines secretary Mr AK Singh.
It is reported that during discussions, the state government officials told the Mittal Steel delegation that virgin mines in Chira, Gua, Jamda and Noamundi in West Singhbhum district had been identified for the Mittal Steel project. As the Chira iron ore mines were in possession of IISCO, Mittal Steel officials asked the state government to allot some other iron ore reserves and precipitate a confrontation by allotting the Chiria mines which were at present under IISCO.
The proposed lease of the IISCO owned iron ore mines in Chiria in West Singhbum district in Jharkhand to Mittal Steel could lead to a major confrontation with SAIL unless the two steelmakers agree on a deal. Chira mines were captive mines of Indian Iron & Steel Company IISCO which had been mining the deposits quite extensively for many years now.
The Jharkhand government on its part had been fighting for some years now to cancel all the leases on iron ore and other mines granted in the past to IISCO in West Singhbhum district. Jharkhand succeeded in canceling three of the 10 leases relating to the Chiria and Gua mines.
At present, all the leases relating to the Chira mines were with IISCO. After completion of the proposed merger of IISCO with Sail, the leases granted to IISCO could be cancelled unless the leases were transferred to SAIL. Sources said there were no provisions in the minerals act to transfer lease to another party.
Mineral Exploration Corporation Ltd MCL which undertook the initial detailed exploration work in Chira in 1970-72 divided the entire deposit into four blocks viz North Block, South Block, West-Central Block and East Central Block. The exploration of Chira deposit was done by MCL in two phases.
GoM recommends 100% FDI in coal mining
The Group of Ministers GoM set up by the Centre has recommended allowing 100% foreign direct investment FDI under automatic route in both coal and non coal mining sector, removing some of the present restrictions, Union Minister of State for Coal Dasari Narayana Rao said. The GoM's recommendation would be placed before the Union Cabinet soon for approval, he said.
The Centre was taking several initiatives to encourage the development of the mining sector and given its potential, the government was keen on promoting FDI in this sector, Mr Rao told reporters. Mr Rao said that the Centre had also set up a committee for detailed examination of the bottlenecks afflicting the mining sector and to suggest measures to increase investments in this area. He also said that an expert committee on roadmap for coal sector reforms had also been set up.
Posco explores coal from MCLs Talcher mines
A Posco India team headed by Mr Jin Taimoh visited Talcher coalmines of MCL today to explore the possibility of drawing coal from their power venture in Paradip. The team included an ex CGM of MCL Mr MV Mathur in his new role as the coal consultant to POSCO.
The team members visited Bharatpur coalmines and Global washery here but cancelled their trip to another coalmine Lingaraj fearing strong opposition from the Congress workers led by the ex-municipal chairman, Mr Keshab Bhutia.
Sources said that it was too early to say whether they would take coal from MCL mines or set up their own power plant here for the upcoming steel plant in Paradip. Talcher is the best choice for coal mining due to economic as well as logistic reasons.
SAILs BSP unit modernization needs ore from Rowghat Mines'
Steel Authority of India Limited on Monday expressed serious doubts about it continuing production at its plant here beyond 2014, if supplies from Rowghat Mines were not tied up immediately. The decision to modernize the 3.5 million tonne Bhilai Steel Plant also depends on getting Rowghat Mines.
With iron ore reserves fast depleting at the Dalli Rajhara Mines, replenishing ore reserves has assumed significance. Moreover, the proposed expansion plan of the BSP, the most profitable enterprise of SAIL, would take off only if the state-run steel major was given Rowghat Mines.
BSP MD Mr R P Singh said "Frankly speaking, my plant has ore reserves for the next eight years and without any fresh linkage we would be in a mess. Which is why we need the Rowghat Mines, which has an estimated 600 million tonnes of iron ore and would last for the next 30 years," he pointed out. "As per SAIL's expansion plan, the BSP has been mandated to ensure capacity expansion to 7 million tonnes by 2012 and 10 MT by 2020 and it is very logical that increased production would imply an increased consumption of iron ore," said Mr Singh.
Indian PM announced massive investments in North East
Indian PM Dr Manmohan Singh announced Rs 60 billion investments in the energy sector for the backward northeastern state of Assam. "I am laying the foundation stone of Rs 3000 crores for a 500 MW thermal power plant here shall also dedicate three coal fields with an investment of another Rs 3000 crores," the Prime Minister said. "The investments would go a long way in improving the power situation in Assam. We are committed to helping Assam and other northeastern states for all round development." Dr said.
Dr Singh is scheduled to formally hand over three coal fields of the Coal India Limited to the National Thermal Power Corporation.
BEML to float JV for entry into contract mining
Mining equipment manufacturer Bharat Earth Movers Limited BEML has entered into a three way JV for diversifying into contract mining, its CMD Mr VRS Natarajan said. Mr Natarajan said that BEML would hold 45% equity in the venture, while the two partners, one Indian and the other Indonesian, would control the remaining 55% between themselves. Mr Natarajan said that the company was in the process of being formed and was awaiting approval of the government. Currently, the government holds 61% in BEML.
The BEML chief said that since the government was allotting coal blocks to private parties for increasing coal production to meet future energy demands, the company was eyeing a huge business opportunity in this sector.
PSMC Privatization Sell off likely on 31st January
Dr Abdul Hafeez Shaikh, Federal Minister of Privatization and Investment, has said all stakeholders are working together for satisfactory closure of Pakistan Steel Mills Corporation transaction by January 31. Dr Shaikh was speaking at a pre bid conference here on Monday for clear understanding of the PSMC transaction and the bidding process and to respond to the queries of the bidders.
The pre-qualified parties have completed the due diligence of the transaction through plant visits, physical and virtual data room. They have also conveyed their comments on bidding documents.
Five pre-qualified parties, which participated in 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 UAE
3. International Industries Ltd of Pakistan and Industrial Union of Donbass IUD of Ukraine
4. Magnitogorsk Iron & Steel Works Open JSC MMK Russia
5. Noor Financial Investment Company of Kuwait.
The bidders were informed that they have to deposit $30 million four days prior to the bidding date for becoming eligible to participate in the bidding process, which would comprise two rounds. In the first round sealed bids will be dropped in the transparent bid box, which will be opened and read over by the representatives of print and electronic media. While in the second open bid round, the three highest bidders will be asked to compete. The successful bidder will be required to deposit 25 % of the bid price within 20 days after the issuance of Letter of Acceptance LOA. For the remaining amount 60 days will be given from the date of issuance of LOA.
The Privatization Commission has offered to qualify strategic Investors interested for acquiring 75% equity stake in Pakistan Steel Mills Corporation, together with management control, on an as is, where is basis. A consortium led by Citigroup Global Markets Limited is advising the PC on the sale.
Strikes paralyze several EU ports
Strikes by dock workers paralyzed cargo handling in several European Union ports and thousands of demonstrators converged on the EU legislature to protest at new plans to liberalize the profession. Workers closed down cargo handling in Belgium's Antwerp, Europe's second biggest port, and strikes affected harbor work in Portugal and Denmark. Dockers in Sweden planned a partial strike.
The European Parliament is set to reject new plans to liberalise cargo handling at EU seaports later this week, two years after voting down the previous draft legislation on port services. The bill, tabled by the EU's executive Commission, proposes opening cargo handling to competition. The vote is scheduled for Wednesday.
Hyundai to build new 7 million tonne integrated steel mill
A South Korean provincial government on Monday gave Hyundai INI Steel the green light to establish a steel complex in a western port city, clearing the way for the South Korea's No. 2 steelmaker to build an integrated steel mill. The administration of South Chungchong Province said it approved Hyundai INI Steel's request to designate a vast area in the port city of Tangjin, about 123 kilometers south of Seoul, is an industrial complex. The approval is expected to galvanize Hyundai INI Steel's plan to build the nation's second integrated steel mill after top steelmaker POSCO.
The envisioned industrial complex is close to the factory of the now defunct Hanbo Iron & Steel Co., which Hyundai INI Steel acquired in October 2004.
Hyundai INI Steel said that it will invest about 5 trillion won ($5.1 billion) to build two blast furnaces with a combined annual capacity of 7 million tons of slabs. Work on one furnace will begin this year for completion in 2010, while the other one will be finished in 2011 after construction starts in 2008, it said.
When completed, the integrated mill is expected to raise the annual steel production of Hyundai INI Steel, an affiliate of Hyundai Motor Group, to 17 million tons from the present 2.9 million tons.
The project will help increase supply to the domestic steel market, improve the global competitiveness of steel-consuming industries such as cars and shipbuilding and realize import-substitution effects worth over W4 trillion ($4 billion) annually, the company said.
Aricom declares interest in 2 Russian iron ore deposits
Aricom said that it was looking to spend $61 million for the 50% stakes in the Kimkanskoye and Sutarskoye deposits estimated to have 550 million tonnes of iron ore in Jewish Autonomous Region in Eastern Russia which borders China.
Aricom said that the deposits are also located near the Trans-Siberian railway, making it easy to transport the raw material. Our proximity to China and our expanding regional infrastructure should allow us to deliver significant logistical advantages to serve the anticipated continued high growth in the Chinese iron ore market, Aricom Chairman Mr Malcolm Field said in a statement.
Aricom is known for finding titanium dioxide, one of the most widely-used pigments for providing whiteness and brightness and was founded to market the product in Russia and in other former Soviet states. Aricom controls the titanium-related operations of Peter Hambro Mining, which mines gold in Russia.
Dofasco Duel Analysts views
Arcelors last bid at C$71 a share, 4.4% more than ThyssenKrupp's January. 14 bid of C$68, has led the market with lot of speculations and view points
It boils down to how badly people want this asset,'' Mr Stephen Pope, head of equity research at Cantor Fitzgerald LP in London, said. The view seems to be that Arcelor desperately need it to boost their strength in the North American car market and keep Mittal in sight.''
We're approaching the critical level of what can be paid,'' said Salah Seddik, a fund manager in Paris at Richelieu Finance, which oversees the equivalent of $4.7 billion, including Arcelor shares. Investors are losing patience and are afraid it will go too far.''
This is like a heavyweight fight,'' said Mr Jim Hall of Mawer Investment Management in Calgary. They keep punching each other and you'd expect someone to go down.''
From a financial side it doesn't make sense anymore,'' Mr Norbert Kretlow, an analyst at Independent Research, said Arcelor is under even more pressure, because they want to move closer to Mittal again.''
It's possible for ThyssenKrupp to match the Arcelor offer one more time, as the two are a good fit and as the Dofasco management backs a takeover by ThyssenKrupp,'' said Mr Christian Obst, an analyst at HVB in Munich.
The ratings on ThyssenKrupp could be lowered if it is ready to increase its offer for Dofasco above Arcelor's counter-bid and if this additional financial burden is not compensated by a tangible deleveraging plan,'' an S&P team led by Mr Olivier Beroud in London wrote in a report. A continuing bidding contest might exhaust ThyssenKrupp's financial flexibility.''
Uncertainty dominates Coal UBS
The time leading up to contract negotiations is an uncertain one, and the coal sector is no different with some early settlements clouding the picture in terms of the overall outlook for coal prices this year. As UBS notes some early contract settlements have been at prices below its expectations, but it remains of the view these settlements are not representative of contract prices across the board.
The broker is anticipating hard coking coal prices will decline by 12% this year to $110 per tonne, while semi-soft prices are forecast to fall by 12.5% to $70 per tonne. The broker also forecasts a 13% fall in benchmark prices for thermal coal, to $46 per tonne.
Excel Coal signs long term coal supply contracts
Excel Coal Limited announced it has entered into a contract with Taiwan Power Company. The agreement would see the company supply 3 million tonnes of coal at the rate of 0.5 million tonnes per year for six years starting 1 January 2006. The contract will be supplied by coal from the Wambo mine, located in the Hunter Valley in New South Wales, and will be exported via the Port of Newcastle.
Excel Coal has also entered into a contract with the international trading group Cargill International. The Cargill contract will see Excel 1.8 million of blend coal over 3 years, with 300,000 tonnes to be delivered in 2006, 600,000 tonnes in 2007 and 900,000 tonnes in 2008. This contract provides for a partial prepayment by Cargill of US$40 million.
This delivery schedule has been specifically tailored to fit with Excels planned mine expansions, the group noted. This coal will be principally supplied from the Wambo mine and shipped via the Port of Newcastle, but can also be supplemented by production from Excels other mines in New South Wales.
MMK steel production up 0.7% in 2005
MMK steel production up 0.7% in 2005
Magnitogorsk Iron & Steel Works MMK in Chelyabinsk region produced 11.38 million tones of steel in 2005 as compared to 11.3 million tones in 2004 although product of finished steel was down by 9.4% to 10.2 million, agglomerate was down by 0.2% to10.34 million tones, and coke was down by 5% to 5.58 million tones.
MMK produced 1.029 million tonnes of ore, 0.945 million tonnes of agglomerate, 0.469 million tonnes of coke, 0.834million tonnes of cast iron, 0.970 million tonnes of steel and 0.880 million tonnes of steel products in December 2005.
FAS division likely to say no to NLMK's VIZ Stal buy
The Sverdlovsk region's division of the Federal Antimonopoly Service FAS is likely to say no to the proposed acquisition of an interest in Yekaterinburg-based silicon sheet steel producer VIZ-Stal by Novolipetsk Steel, Ms Tatyana Kolotova, and the division's acting head, told a press conference.
The division will have its opinion ready by the end of February and then refer it to FAS headquarters in Moscow, which had asked for the opinion, Ms Kolotova said. "The opinion is likely to be negative" as the presence of several participants is needed on a market in order to establish a market economy, she said. "What good is there if there is just one player on a market? If there are no natural monopolies, any merger between companies is undesirable for the development of a market economy," Ms Kolotova said.
Novolipetsk Steel asked the FAS for clearance to buy into VIZ-Stal, which is a limited liability company, in December 2005. Italy's Duferco is currently VIZ-Stal's main owner. The parties involved have not said how much of VIZ-Stal the Russian steel major wanted to buy. The law states that the FAS must give its consent to the purchase of more than 20% of a company.
INI Steel signs iron ore & coal supply deal with BHPB
S Korean INI Steel Co announced that it has signed a MoU with BHP Billiton for the long term supply of iron ore and coal. The steel maker said BHP agreed to supply 4-5 million tonnes of iron ore and 2.5-3 million tonnes of bituminous coal per year for 10 years starting from 2010. INI gave no price for these supply arrangements.
The amount equals 40% of Hyundai INI's annual consumption of the products, it said. The long term supply pact is in line with Hyundai INI's plan to build an additional domestic mill with a 7 million ton annual capacity in Songsan, South Korea by 2010, the company said. "Given the new steel mill project, securing high quality raw materials on a long-term basis and with stability is a key to success," said Hyundai INI in the statement.
Bayou Steel sales up by 13%
Bayou Steel Corp reported a 13% increase in sales for fiscal 2005, its first full year of business after emerging from bankruptcy in early 2004. The company reported net income of $19.3 million for the fiscal year ending Sept. 30, 2005. Sales for fiscal 2005 were $271.7 million while sales for fiscal 2004 were $240.8 million.
The increase in sales was due to an $83 per ton or a 19% increase in the selling price which was partially offset by a 5.5% decrease in shipments. The selling price increase has generally been related to the sharply escalating prices for scrap and the increasing prices for alloys and fuel during fiscal 2005. The company increased prices for its products offsetting its higher costs of scrap, alloys, and energy.
"Overall, our fiscal 2005 performance was solid, in spite of a variety of challenges including higher natural gas and electricity prices and disruptions in production and shipments directly caused by the hurricanes which battered the Central Gulf Coast Region, said Mr Jerry Pitts, president and chief executive officer.
Baku Steel Company shuts because of lack of raw material
Baku Steels head of the press service Mr Namig Ahmadov told press that the company has stopped production due to shortage of ferrous metal cuttings which is the main raw materials. There is a reserve of metal for the period more than 10 years in Azerbaijan; however some state structures providing the Company with metal cuttings refuse giving raw materials, even though we pay them superfluously. We also pay in advance in order to have the reserve of raw materials.
Mr N Ahmadov stressed that the administration of the Company had appealed to the government of the country as far back as a week for solution of the problem and the Company had been given a promise that the problem will be solved. Negotiations are currently on at a level of the prime-minister and Companys restoring its activity depends just on the results of these negotiations.
It is reported that scrap is delivered Baku Steelby Azerenergy JSC, Azneft Production Union, and SOCAR.
The Baku Steel Company which has general power of 350 thousand tons general productive capacity fused approximately 1 million tons of metal cuttings during the past year.
Evraz restricts insider trading
Evraz has restricted nearly 500 of its staff from trading in the company's shares without prior permission, a move aimed at improving transparency at the largest Russian steelmaker, company vice president Ms Irina Kibina said Monday. Since January 1, Evraz has named 500 of its top and middle management staff, as well as people connected with them, including relatives, as having access to insider information that could disadvantage ordinary shareholders. "This is the company's wish to answer ordinary shareholder needs," Ms Kibina said.
Evraz raised $422 million by listing 8.3% of its shares in an initial public offering on the London Stock Exchange last June, but it was later criticized as one of the country's least transparent listed companies in a September index compiled by ratings agency Standard & Poor's. The agency chided Evraz for not widely circulating the company's share emission prospectus and not making financial data better available.
"We were rather taken aback by S&P's liquidity rating, and [the insider list] is in part an answer to that, in part made to satisfy Britain's Financial Services Authority," Ms Kibina said.
The British market watchdog cannot, however, demand that any limits be placed on the share trading of Crosland Global, the majority shareholder in Evraz, Ms Kibina said. The steel maker's top three executives Mr Abramov, new board director Mr Alexander Frolov and new president Valery Khoroshovsky together own nearly 90% of Cyprus-registered Crosland.
Dofasco Duel - Statement by Thyssen Krupp
The Executive Board of ThyssenKrupp AG has noted the announced increase in Arcelor's offer to C$71 per share to the shareholders of Dofasco. ThyssenKrupp will examine Arcelor's announced offer and decide on its next steps.
A Support Agreement exists between Dofasco and ThyssenKrupp to support the ThyssenKrupp offer. This agreement requires Dofasco to keep ThyssenKrupp informed about the status of talks with Arcelor. If Dofasco and Arcelor reach an agreement, ThyssenKrupp is entitled under its Support Agreement with Dofasco to decide within a period of 5 working days whether it wishes to match the new offer conditions of Arcelor ("right to match").
South African Cabinet backs plan to end import parity pricing
The South African Cabinet resolved late last year to pursue a policy that seeks to phase out the controversial practice of import parity pricing IPP, employed by a number of large resources linked businesses, most notably the steel sector. It is understood that the decision will be communicated during the first quarter, with Trade and Industry Minister Mandisi Mpahlwa expected to meet with a number of large companies in the metals, chemicals and forest-product industries, where IPP is commonplace.
Government has concluded the pricing model to be a key constraint to the competitiveness of downstream manufacturers, a fact reportedly confirmed by a number of sector studies. However, it is still awaiting the completion of investigations in the aluminium, chemicals and pulp and paper industries. The decision is also likely to be heavily contested, with many primary producers expected to point to the fact that IPP is used extensively internationally and that the introduction of a new model could lead to market distortions and other unintended consequences.
Nonetheless, industrial policy chief director in the enterprise and industry development division of the Department of Trade and Industry DTI Mr Nimrod Zalk is reported to have said that Cabinet had indeed taken the decision at a meeting in October to phase out IPP, contending that international practice was not necessarily best practice. He also argued that IPP as currently employed was having serious unintended consequences for the local manufacturing sector and was particularly inappropriate given South Africa's geographic isolation, which made the competitive importation difficult.
AISI releases roadmap to reduce energy consumption in steel making
A New Roadmap for Transformation of the Steelmaking Process named "Saving One Barrel of Oil per Ton SOBOT, describes a long term strategy designed to reduce energy intensity in steel production by identifying research in energy substitution, energy recovery and energy savings. The document will guide R&D over the next 10 to 15 years toward the 2025 target of producing steel using a barrel of oil, about 6 million BTU, per ton less than today's processes. With energy representing 20% of the cost of making steel, the transformation of steelmaking processes needs to be considered, according to AISI.
"Energy savings of this type cannot be made by incremental changes, although they are often important enabling technologies," Mr Lawrence W. Kavanagh, AISI's vice president of Manufacturing and Technology said during the announcement. "It will require radical approaches to future steelmaking processes to achieve the reductions in energy use contemplated by SOBOT."
Energy use per ton of steel shipped has been reduced by 23% since 1990, as previously reported by AISI, and steelmakers efforts today are always driving energy consumption closer to the limits of today's processes. "Although our energy efficiency since 1990 has outperformed Kyoto, we must do more," Mr Andrew G Sharkey, III president and CEO of AISI said. "SOBOT's goal will keep us firmly focused on a sustainable future."
Jet metal supply scarce
Soaring prices for titanium and aerospace aluminum, and tightening supplies, are creating new challenges for Boeing suppliers trying to keep up with the airplane maker's increasing production rates. It is reported that aerospace grade metal distributors say that the price of titanium has increased fivefold or more in the past 18 months, while the price of aircraft grade steel has doubled and aluminum is up nearly 25%. And order times for titanium stock have doubled, to as long as a year, meaning that Boeing suppliers that haven't planned ahead may get in trouble.
Mr Jim Kinney, division manger for Bralco Metals in Kent, said the supply of aerospace metals is the most limited he has seen in his 34 years in the industry. "Especially with a lot of the new orders Boeing keeps getting, it could be even tighter through 2006," he said.
Mr John Byrne, director of procurement for purchase and outside production for Boeing Commercial Airplanes, said in an interview that Boeing has taken a much more active role in acquiring materials for its suppliers, as well as for its own production, as the extent of the shortages has become apparent. "I believe we have really solid plans on all our requirements," Byrne said, "It's our responsibility to make sure the whole enterprise has a solution."
North American SS prices forecasted to drop in 2006
The marketplace agrees with analysts that North American transaction prices should fall between 10% and 15% sometime in 2006 because of stronger supply as well as reduced nickel and cobalt ore and stainless scrap prices. North American stainless-steel use grew by a robust 13% in 2004 and demand began 2005 very strong. However, end use wilted in late summer and early autumn so that purchasing will decline by about 6% for the year.
Buyers report that lead times shrunk from 12 weeks in January 2005 to four weeks in December for mill deliveries.
"Stainless steel needs are down among our customers," says Mr William Laidlaw, purchasing manager at service centre TCT Stainless Steel in Sterling Heights, Mich. "At the same time, we're reducing our inventories and, with expanded production, there's a lot more supply." Prices doubled in 2003, remained high in 2004, and increased again in 2005 until September when monthly average prices began dropping. "And now, everybody is buying on the spot market because nobody wants to sign a 2006 contract and get caught paying too much in coming months," Mr Laidlaw says.
Stelco names proposed new board
Stelco Inc revealed its proposed new board of directors as chosen by the firms that will own the steelmaker if its restructuring plan is approved. Executives and lawyers of the steelmaker will appear in Ontario Superior Court on Tuesday asking for approval of the plan.
The plan allows Tricap to choose four directors for the steel maker's new board, which would take over once the plan is implemented. Sunrise and Appaloosa are each able to choose on director, while the remaining directors must be acceptable to all.
Tricap's proposed directors are Mr Peter Gordon managing partner of Tricap Management Ltd, Mr Cyrus Madon MD of Tricap and former CFO of Royal LePage, Mr John Lacey, chairman of The Alderwoods Group Inc and Mr Tony Molluso, CEO of Concert Industries. Sunrise proposes Mr Laurie Bennett, former partner of Ernst & Young. The remaining directors would be Mr Pierre Dupuis former COO of Dorel Industries Inc and Mr Courtney Pratt current CEO of Stelco.
All of the potential directors have said they are willing to serve on the new board, Stelco said.
Australia's United Group gets A$90 million rail contract
Australian engineering and construction firm United Group said that contracts worth over A$90 million had been awarded to its rail and infrastructure businesses. The contracts include the manufacture and supply of rolling stock, including coal wagons for Queensland Rail and iron ore cars for BHP Billiton, along with upgrade and signaling works on existing railway tracks.
"The increased demand for commodities is fueling additional works like new or upgraded rail cars and wagons to support the resources industry," said United CEO Mr Richard Leupen in a statement. "United Group's order book is now A$4.3 billion, and around A$3 billion of that comes from the rail and infrastructure businesses," he said.
Rescue for trapped miners in central China hampered
Huge amount of silted mud and cinder hampered the rescue efforts for four miners trapped in a coal mine flooding in central China's Hunan Province five days ago, said rescuers Monday evening. But there is still hope that the trapped miners are still alive, as rescuers believed that they had enough time to move to a place above the water level when the flooding occurred.
The accident took place last Wednesday when 33 miners were working at the Tangshi Colliery in Zhuzhou County. Twenty-nine of them managed to escape while four others got trapped.
Rescuers said that there is too much silted mud and cinder underground, which made it hard for rescuers to pump water. They said that two water pumps had been broken. Rescue work is still going on.
China to build 180,000 kilometer rural highways in 2006
China will build 180,000 kilometer rural highways in 2006, said Mr Li Shenglin, minister of communications, in Beijing Sunday. At a yearly national communications meeting, Li said these will be mainly built in old revolutionary bases, border areas, poor areas and major grain producing areas.
According to the ministry's plan, all administrative villages in China will be connected by highways at the end of 2010. Local transportation departments should give favorable policies and financial support to rural highway construction, he said.
The ministry's statistics show China has 630,000 kilometers of rural highways, one time more than the total mileage it built in the 53 years since New China was founded in 1949. However, roads in many rural areas are still very bad, and building highways for all China's villages is difficult, as it needs money, technology and support from local governments. Mr Li said the ministry will try its best to build highways on top of the existing roads and not over farmland.
Mittal Steel SA reorganizes top management
Mittal Steel SA announced that it has appointed Mr Rick Reato as the company's COO. Mr Reato, an engineer with long experience at Mittal Steel South Africa, will be based in Vanderbijlpark and report to CEO of Mittal Steel SA Mr. Davinder Chugh. All business operations including Vanderbijlpark Steel, Newcastle Steel, Saldanha Steel, Vereeniging Steel, Mittal Steel Coke & Chemicals, Corporate Safety Health and Environment, Technology and Projects will report directly to the newly appointed COO.
Mr Heyno Smith, previously Works Manager of Hot Rolling at Vanderbijlpark, has been appointed GM in charge of Vanderbijlpark Steel. Mr Jaco Stapelberg, previously works manager of Metallurgical at Newcastle Steel, has been appointed GM in charge of Newcastle Steel. The appointments are effective from January 1.
CEO Mr Chugh said The reorganization of Mittal Steel South Africa's senior management team follows the departure of the General Manager of Vanderbijlpark Steel Mr Erich Heine. These appointments are in line with our continued drive to develop senior management within the organization. I am pleased that we have such depth of talent within the company and am confident these senior managers will drive our performance to even greater heights.
Harris Steel to acquire Fresno assets and business of Franklin Reinforcing
Harris Steel Group Inc announced that Harris Steel Inc. through its newly established subsidiary, Harris Rebar Fresno Inc has signed an agreement to purchase the Fresnos California based assets and business of Franklin Reinforcing Steel Co Inc. Harris Steel Inc is a 50:50 partnership of Harris Steel Group Inc with Nucor Corporation.
Total consideration will be based upon the value of working capital items at closing, but is anticipated to be approximately $6 million. Harris will acquire the business, fixed assets, working capital items and employees of Franklin's Fresno operation. The acquisition is subject to due diligence and is expected to close within 30 days.
Harris Steel Group Inc., through its subsidiaries, is engaged in the distribution, fabrication and placing of concrete reinforcing steel, including epoxy-coated reinforcing steel; the design and installation of concrete post- tensioning systems; the manufacture and distribution of wire and wire products, welded wire mesh and cold finished bar; and the manufacture and distribution of heavy industrial steel grating, aluminum grating and expanded metal. These operations serve customers throughout Canada and the United States. Through an acquisition in July, 2005, Harris Steel Group also participates in steel trading on a worldwide basis.
Mr Mark Samuel is the new Chairman of Samuel Son & Co
Having served as Chairman of the Board of Samuel Son & Co for over five years, Mrs Elizabeth Samuel has recently chosen to step down from that position. Replacing her as Chairman of Samuel Son & Co Limited will be Mr Mark Samuel. Mark Samuel represents the fifth generation of family leadership in this successful Canadian company.
Mr Mark Samuel has been involved with the organization since 1982. "I am honored to have been asked to take on the role of Chairman. Samuel Son has evolved into one of the premier service centers in North America and our prospects for growth have never been better. I look forward to working with Wayne Bassett, our Board, and our incredible, dedicated employees to continue to realize our full potential."
Mrs. Samuel will continue to serve on the Board as a Director and will assume the honorary role of Chairman Emeritus. No other management changes are anticipated and Wayne Bassett will continue in his role as President and CEO of Samuel, Son & Co Limited.
Founded in 1855, Samuel Son & Co Limited is a leading North American processor and distributor of carbon steel, stainless steel and aluminum industrial products. The company operates more than 80 facilities throughout Canada and the US. Samuel Son remains 100% family owned by Mrs Elizabeth Samuel, Mr Kim Samuel Johnson, Mr Tammy Samuel Balaz and Mr Mark Samuel.
