January, 18 2006
RINL to issue fresh EoI for funding expansion
Rashtriya Ispat Nigam Ltd RINL will soon advertise for a fresh EoI for Rs 4,346 crore worth of debt for funding its proposed expansion plan as per Mr Y Siva Sagar Rao CMD of RINL. The Rs 8,692-crore expansion project will be in two phases and will take four years time. The project will be funded through a mix of debt and equity at a ratio of 1:1. RINL is likely to choose a number of banks and then form a consortium for the debt portion.
Earlier, this project was supposed to be funded at a debt equity ratio of 0.5:1. More than 40 banks and financial institutions had responded to an EoI advertised by RINL. However, it was scrapped when the Union Steel Ministry suggested a 1:1 debt equity ratio.
CMD said "That we would decide once we get the responses for the banks and financial institutions. We would study and duly consider all available options before us. Regarding ECB or domestic borrowing, let me state, we would go for whatever is the cheapest. There is no bar on us,"
According to him, initial activity would be funded from internal accruals. "By June this year, we wish to complete the necessary infrastructure activities like approach road, water arrangements, power connections needed for the expansion work and lighting. By that time we hope to finalize the debt funding," he said. "Jungle in the expansion area has been cleared. Site leveling and soil investigation is currently on," he said.
RINL is increasing its capacity to 6.3 million tonnes per annum from the existing level of 3 million tonnes per annum. The project has been approved by all the governmental authorities. In the first phase, which would spread over three years, RINL would expand hot metal production facility, steel making facility, sinter plant, wire rod and seamless tube mill. Subsequently, in the second phase, a special bar mill and a structural mill would be added.
New iron ore reserves found in Jharkhand
In a significant development, geologists have explored huge new iron ore reserves in West Singhbhum district of Jharkhand. Official sources of the Mining and Geology department said here that more than 11,000 acres of land with huge iron ore reserves in different areas of the district had been located by geologists recently.
Of these, 3700 acres were in Karampada forest area, 2500 acres in Jeraldburu-Chanuburu, 1600 acres in Araburu-Bichaburu-Bangraburu area, 1250 acres in Jhiliburu and 1100 acres in Diliburu area.
The newly found reserves, if real, would ease the concerns of the investors in view of the legal tangle involving some of the prime iron ore mines of Chiriya Mines area.
Hindustan Zinc raises prices to catch up global trend
Indias top zinc producer, Hindustan Zinc Ltd has raised prices by 4% or Rs 4,200 a tonne ($95) with immediate effect to align with record global rates, a company official said on Monday. Zinc will now cost Rs 111,300 a tonne in the domestic market, the official said.
Meanwhile, zinc rose to a record in London for a fourth consecutive trading session on speculation that the closure of a Mexican refinery may increase this years production shortfall. A zinc refinery controlled by Grupo Mexico SA was damaged by a January 6 power discharge. The company said January 11 it didnt know when production will resume.
Zinc for delivery in three months on the London Metal Exchange rose as much as $23.50, or 1.1%, to $2,085 a metric ton.
POSCO project to face another hurdle from PPSS
The Posco Pratirodh Sangram Samiti PPSS spearheading the agitation against POSCO's proposed Steel plant in Paradip, today threatened to launch economic blockade during the budget session of the Assembly. PPSS Chairman Mr Abhaya Sahu told newsmen that over 3700 families in eleven villages to be displaced in the project have decided not to leave an inch of their land for the project and prepared to face a bloody battle to achieve their demand.
Mr Sahu said the state government has planned to acquire 4000 acres of fertile and highly agricultural productive land close to the Bay of Bengal for the project where nearly 22,000 populations were eking out their living by producing high quality betel vine, paddy and several other economic products. The villagers of Mahul, Dhinkia, Trilochanpur, Gobindpur, Nuagaon, Nolia Sahi, Gada Kujanga, Kolang, Kandha, Bhuyanpal and Jatadhar, Mr Sahu said had taken a vow not to leave their land for the project and prepared to die on their soil to oppose the steel plant.
Jayswal Neco to buy Rajinder Steel's Raipur plant
Corporate Ispat, a Jayswal Neco group company, is close to acquiring Rajinder Steels Raipur plant for Rs 75 crore. In a recent auction held by Stressed Asset Stabilization Fund for the assets of Rajinder Steel, Corporate Ispat has emerged as the highest bidder. The auction was held by SASF in Mumbai at the behest of Allahabad High Court in order to ensure a fair bidding process. The institution received 26 bids of which the highest bid was from the Basant Lal Shaw-promoted Jayswal Neco group.
Neco has deposited 25% of the bid amount with the Allahabad High Court and were given time up to six months to deposit the balance amount. The lenders exposure in Rajinder Steel is said to be around Rs 300 crore.
Rajinder Steel was once owned by Mr Batra who fled the country in 1996 after the steel sector went through a downturn. The company has 52 hectares of land and a steel plant located at Raipur.
JSPL to diversify in diamond mining in Jharkhand
It is reported that steel major Jindal Steel and Power Ltd JSPL has been granted approval by Central government for mining of diamonds in Jharkhand and is waiting state governments approval to start diamond exploration. JSPL was granted the reconnaissance permit in Jharkhand in November 2005.
JSPL has decided to take up this project as a JV with Rex Diamond Mining Corporation of Canada. Rex Corporation will extend all technical support for exploration. The company will carry out its diamond exploration activities in a total area of 3,009 square kilometers in the Gumla district.
De Beers, the world's largest diamond makers from South Africa, are also reported to very keen in exploring Jharkhand for diamonds and have applied to central government for approvals. De Beers will be exploring an area of 4,000 square kilometers for diamond exploration in the district of Koderma.
Mangalore port traffic up by 8%
The New Mangalore Port during the first nine months of 2005-06 handled 26.05 million tonnes of cargo as against 24.12 million tonnes handled during the corresponding period last year, registering an 8.01 per cent growth. There is also an increase in the number of vessels handled at the port. During the period under report, 830 vessels were handled as against 763 vessels handled during the corresponding period of last year.
The increase in handling of fertilizer, coal, edible oil, iron ore fines, POL crude & products, LPG, cement and other cargo has contributed to the growth in traffic.
MCLs Talcher coalfields owe coal royalty to Orissa
Talcher Coalfield, which account for more than 70% of the output and dispatch of the Mahanadi Coalfields Limited MCL, is reported to owe Rs 58 crores to the state of Orissa on account of coal royalty. Coal royalty is calculated on the basis of sale of coal.
The royalty collection by the end of December 2004-05 stood at Rs 225 crore as against Rs 222 crore for the corresponding period of the current financial year. The negative growth of coal royalty, for the first time in the past decade has been attributed to the fall in coal production in Talcher coalfields due to the frequent agitations.
Adhunik Metaliks to float IPO by March 2006
Adhunik Metaliks Limited would hit with the capital market with an IPO by March 2006 to raise funds to part finance the company's expansion plans. Mr Manoj Agarwal MD of Adhunik Metaliks said that the company plans to raise Rs 100 crore from the market, adding that the issue would be made through the 100% book building route.
Mr Agarwal said that the company is targeting the automobile sector for becoming an original equipment manufacturer (OEM) of auto-grade steel parts for Tata Motors and Mahindra & Mahindra. He said that the company, which had already procured an iron mine, is also in the process of acquiring a coal mine.
Chinese steel giants Baosteel and Magang to form partnership
Baoshan Iron and Steel Group, China's largest steel maker, will partner with China's tenth largest steel maker, Ma'anshan Iron and Steel Group (Magang), a senior official said. It is reported that the two groups would sign a framework agreement for all-round cooperation in future development. The official announcement is expected to come later. "So far there is just a framework for a strategic alliance. There is no further information about financial operation between the two groups," an official is reported to have said
Located in central China's Anhui Province, Magang produced 8.37 million tonnes of iron, 9.65 million tons of steel and 8.89 million tonnes of steel products in 2005. It plans to increase capacity to 15.7 million tonnes of iron, 16.17 million tons of steel and 15.10 million tons of steel products in 2008. Magang focuses on four kinds of steel products plates, section productions, wires and wheels. Its H section steel products have 50.61% of the domestic market and the rail wheel products have more than 40% of the domestic market. The company is building a 5 million tonnes high end plate project that is due to be completed in 2007.
Magang has the Wheelarra joint venture with BHP Billiton, WISCO, Tanggang, Shagang, Japan's Mitsui and Itochu to develop west Australia's Jimblebar mine. Moreover, Magang has long term contracts with BHP Billiton, CVRD, and Hamersley. In addition, Magang's parent company, Magang Group, secures nearly 25% of the demand that helps guarantees production and cuts down on iron ore concentrate costs.
ISRI warns customers seeking scrap of fraudulent certifications
ISRI has learned from a company in India that a company in North America had been sending fraudulent Certificates of Ownership that implies the association has inspected and certified a shipment to be authentic and free of radiation and munitions.
The Institute of Scrap Recycling Industries does not inspect scrap shipments and does not provide documentation of shipments under any circumstances, said Scott Horne, Vice President and General Counsel for ISRI. These certificates are fraudulent, they are an unauthorized use of ISRIs name and logo, and a misrepresentation of the business of our association. ISRI plans to fully investigate options for enforcement against the company or companies that are found to be using these certificates.
Indonesia imposes tax on coal exports
Indonesia imposed a 5% tax on coal exports to ensure the fuel is available to domestic businesses and to increase its use in the country, Minister of Trade Ms Mari Elka Pangestu said. Former minister of finance Mr Jusuf Anwar issued a decree on October 11 to impose a 5 percent tax on coal exports, pending decision on the benchmark price to calculate the price by the trade ministry. The trade minister set the base price at US$30 a metric ton on January 5.
The tax will be valid to contracts signed starting December 23, Mr Pangestu told reporters on in Jakarta. The base price will be review on the 23rd of every month, he said. Indonesia, which sells about 70% of its coal output overseas, previously didn't tax exports of the fuel.
The tax may hurt sales and earnings at coal miners, said Mr Jeffrey Mulyono, Chairman of the Indonesian Coal Mining Association. "The tax will reduce our competitiveness against producers such as Australia, South Africa and newcomers such as Vietnam," Mr Mulyono said "It will add further to our costs after a sharp rise in fuel prices."
Indonesia's five biggest coal exporters including PT Bumi Resources and Adaro Indonesia won't have to pay the tax as their contracts with the government shield them from levies imposed after signing of the accords, Mulyono said.
Analysts predict that shipping costs to fall
Shipping rates will probably fall for a second straight year as the fleet of coal and iron ore vessels grows faster than the world's demand for commodities. "I don't like the look of the market this year," said Mr Martin Stopford, head of research at London-based Clarkson Plc, the world's largest shipbroker. "Owners are in for a rough ride."
Global dry-bulk trade may reach 2.76 billion metric tons, up from 2.64 billion tons last year and 2.48 billion in 2004, according to Drewry. The fleet of dry-bulk ships will increase to 371 million deadweight tons, or 6,540 vessels, the consultants said.
Revenue for the largest dry-bulk vessels may average $32,000 a day this year, based on the median estimate of six analysts surveyed by Bloomberg in December. Average revenue was $37,552 a day last year, according to Drewry Shipping Consultants Ltd., based in London.
Shipbuilders are delivering new vessels and creating a glut of carriers on world markets, hurting earnings for owners. The capacity in the global dry bulk carrier fleet may rise 6.9% this year, outpacing the 4.5% increase in trade in commodities, according to Drewry Shipping. "The party may be over, but ship owners are still in for a good time" this year, as rates stay above historical averages, said Ms Aarti Gupta, an analyst at Drewry Shipping in New Delhi.
For the Capesize, the fleet will expand by 7.2% to 118 million deadweight tons on 696 vessels. "This threatens to tip the balance into oversupply, leading to a softening in rates," said Mr Nigel Prentis, head of research at HSBC Shipping Services Ltd., a unit of London-based HSBC Holdings Plc.
Brazilian steel tube sales to reach $3.7 billion in 2006
Brazil's steel tube industry could record sales of $3.5 to 3.7 billion in 2006, Mr JosAdolfo Siqueira ED of industry association Abitam told press. "Steel tube production is expected to increase 8-10% in 2006 compared to the year before, meaning sales also will expand," Mr Siqueira added. "Brazil has entered an election year, so there are expectations for several projects and tender offers."
In 2005 steel tube output came in at around 1.8 million tonnes and revenues reached $3 billion or maybe less," Mr Siqueira said, adding that 2004 output levels came in at 2 million tonnes only.
"When it comes to prices, we expected them to remain stable or maybe suffer a decrease if inflation remains under control," Siqueira said, adding: "There is no lack of steel in the market and the steel tube industry has high production capacity with conditions to meet local demand."
FerroChina acquires stake in Chinese steel processor
Singapore based FerroChina is planning to acquire a 35.45% stake in a Chinese steel processor for $30 million. It says it will be able to derive synergies from a proposed acquisition. The deal is subject to both regulatory and shareholders' approval.
Under the deal, FerroChina will buy into Superb Team, which fully owns Chang-shu Everbright Material Technology. Everbright manufactures thin-gauge galvanized steel coils used mainly in the automotive and consumer electronics industries.
FerroChina is a maker of heavy gauge galvanized steel coils.
Guizhou finds 19.9 billion tonnes of coal reserves
China's southwestern province of Guizhou found 19.9 billion more tonnes of coal reserves over the past five years. In the tenth Five Year Plan period, Guizhou, rich in various minerals, obtained CNY 32.64 million from the Chinese government, which was earmarked for exploration of minerals.
The province conducted as much as 2,109 exploration projects and totally injected CNY 800 billion. As a result, Guizhou proved that its coal reserves are 19.9 billion tons.
Japan thermal coal prices poised for 20% fall
Japanese power firms are set to pay at least 20% less for their thermal coal this year after a key importer set a sharply lower benchmark with a small order in late 2005, analysts and industry officials say. Rising supplies from Australia and Indonesia as output and export bottlenecks ease will put pressure on prices this year after two years of steep gains, they said. Most coal contracts follow the Japanese fiscal year, running April to March.
Kansai Electric Power Co., Japan's second-largest utility, set the tone for this year's talks by paying $41 a tonne for 200,000 tonnes of Australian Bulga coal for the October-December period, which was significantly lower than the up to $54 a tonne paid by most Japanese utilities for the current business year to March. Kansai Electric's Bulga contract can be extended to end-September, industry officials said. The company declined to say whether it had settled a new price for 2006 or for contracts with other suppliers for the 2006/2007 business year. Bulga coal is marketed by Oakbridge Group, 74.1% owned by diversified miner Xstrata Plc.
It will be used as a reference point for upcoming annual discussion for supplies from Australia and Indonesia, the main Asian exporters.
"Kansai look to have got a very good deal," said Mr Graham Wailes, coal analyst at AME Mineral Economics in Sydney. "I'd imagine we'll see a range of $41 to $43."
The biggest 10 utilities in Japan, the world's fourth-largest coal consumer but its top importer, burned 51 million tonnes of the black fuel in 2005, industry data showed. Australia supplies about 60% of Japan's coal while 20% is from Indonesia
Evraz Group increased steel output in 2005
Evraz Group increased the steel output by 1.2% in 2005 up to 13.85 million tones. The rolled metal production raised 0.6% to reach 12.23 million tones whereas iron production slipped 0.9% to 11.46 million tones.
The production of steel in the fourth quarter of 2005 expanded 5.1% to come to 3.63 million tones. The iron output was 2.95 million tones, down 1.4% from the same period a year earlier.
Evraz is one of the largest vertically integrated steel and mining businesses in the Russian Federation. The company produced 13.7 million tones of crude steel in 2004, making it the largest producer of steel and steel products in Russia, the largest Russian producer of long products and among the 15 largest producers of crude steel in the world.
Kobe Steel tops Japanese materials recycling awards
Kobe Steel Ltd.'s recycling process for steel mill dust has earned the company top honors at Japans 2005 Awards for Resource-Recycling Technologies and Systems. Since 1975 the awards, offered jointly by the Japanese Ministry of Economy, Trade and Industry in partnership with Clean Japan Center, have honored innovative businesses initiatives that reduce waste generation, reuse used products, and use recycled resources effectively.
With its FASTMET process for direct reduction using rotary hearth furnaces, Kobe Steel succeeded in recycling iron mill dust from blast furnaces that had until now been difficult to recycle, and at the same time, in recovering volatile components such as zinc, allowing the recovery of highly pure iron materials. The technology will contribute to achieving zero emissions in steel mills through the full utilization of mill dust.
Finland's Outokumpu reports drop in 2005 steel deliveries
Outokumpu's stainless steel deliveries fell by 8% last year "mainly due to low demand as a result of strong de-stocking in Europe and rollout of new capacity especially in China," the Finnish steel maker said in a statement Tuesday.
"The order backlog of Outokumpu Technology increased substantially as a result of continued firm investment activity in the mining and metals industry," the statement added.
Outokumpu is to publish full-year financial results on 2 February.
China's 2005 GDP growth estimated at 9.8%
China's gross domestic product GDP is estimated to have grown by 9.8% in real terms in 2005 and 13-14% in nominal terms, said Ms Xie Xuren director of the State Administration of Taxation. Ms Xie's estimates of the pace of China's economic expansion in 2005 matches those made by Mr Ou Xingqian, vice-director of the National Development and Reform Commission, who said earlier this month that GDP last year grew by 9.8%
The government recently revised 2004 GDP growth up to 10.1% following a year-long economic survey aimed at capturing a more accurate picture of the economy. Full year GDP growth and other economic indicators will be released on January 25.
Japanese government plans to extend mine training project
Japanese government plans to extend the training program for coal mine technicians from overseas beyond fiscal 2007 to accommodate the wishes of China and other countries seeking Japanese coal mine related technological assistance, officials said. Under the program, called "The overseas transfer of coal mine technologies project," which began in fiscal 2002, trainees from China, Indonesia and Vietnam visit and study coal mines in this country. The five-year program was scheduled to end in fiscal 2006.
Of the three nations sending trainees to take part in the program, China in particular wanted the program to continue until fiscal 2007 and beyond, the officials said. Major coal mine accidents regularly occur in China and the program, if extended, could help mend the strained relations between Tokyo and Beijing, they said.
The training program is designed to help coal mine technicians acquire technical know-how that Japan has accumulated in its long coal-mining history. The technicians are trained in excavation skills and safety measures for coal miners as well as labor management and productivity enhancement expertise, the officials said. The Kushiro Coal Mine in Kushiro, Hokkaido, the nation's only colliery still in operation, and the defunct Ikeshima Coal Mine in Nagasaki are used for the training. Trainees receive lessons and on-the-spot training for a few weeks to up to six months. So far, 1,089 trainees from the three countries have participated in the program.
SPFU demands Mittal Steel to regulate tariff rates of workers
The State Property Fund of Ukraine has turned to Mittal Steel Germany GMBH, owner of the 93.02% share holding of "Krivorozhstal" OJSC, with a demand to immediately fulfill the provisions of the purchase and sale agreement of the company and to regulate the tariff rates of workers.
According to the SPFU press-service, the Central Committee of the Trade Union of Workers of Metal and Ore Mining Industries of Ukraine informed the Fund that Mittal Steel Germany GMBH does not fulfill one of the provisions of the purchase and sale agreement on "Krivorozhstal".
In line with this provision, Mittal Steel Germany GMBH undertook to set up the tariff rate for a worker of the first category not less than a living wage for an able to work person.
S Korea's SK Corp obtains exploration license for Australia coal mine
SK Corp said that, along with state run Korea Resources Corp, it has obtained a license to explore the Taroborah coal mining area in Queensland, Australia, in cooperation with Korea Resources Corp, as part of its overseas energy exploration business. The South Korean consortium outbid 11 international competitors for the $150 million project. The investigation of the coal reserve is expected to cost about $10 million and finish by 2009, with the investment evenly divided between the two South Korean partners.
The two companies will secure final exploration rights for the Taroborah coal mine after submitting an exploration plan by Jan. 20, the Ministry of Commerce, Industry and Energy said.
The deposit is estimated to hold about 300 million metric tons of soft coal. It will be the country's first fully-owned project in Australia, the ministry said.
Duferco Saldanha faces workers dispute
The National Union of Metalworkers of South Africa MUMSA and Duferco in Saldanha will be meeting to try to resolve workers' demands. On December 22, about 150 employees downed tools demanding that the company implement the employment equity and skills development programs required by law; that they be given transport and housing subsidies, and that an agreement be reached on employment conditions.
They also asked for the removal of a white manager. Although the workers returned to their posts the following day, their demands were not met because general manager Steyn de Vos was away on leave.
CNPC to build two oil pipelines
The China National Petroleum Corporation CNPC is planning to build two pipelines to import oil and oil products from Russia and Kazakhstan to central and southern China. A CNPC official told media "We have filed applications with the central government and expect the projects to be approved. It is quite probable that we will receive approval during the year and the construction of the pipelines will begin as soon as it is granted," "The construction of both pipelines will take approximately 18 months," the source said.
One of the two planned pipelines will start from Lanzhou, capital of the northwestern province of Gansu and run via Zhengzhou to Changsha capital of the southern province of Hunan. The pipeline will be 3765 kilometers in length and will have an annual throughput capacity of eight million tonnes.
The second pipeline will run from Jinzhou in the northeastern province of Liaoning to Zhengzhou and from there to Wuhan capital of the central province of Hubei. It will have a similar throughput capacity.
The pipeline from Lanzhou will carry products from the refinery in Dushanzi in the northwestern Xinjiang-Uygur province. The pipeline from Jinzhou will transport from the Daqing oilfield and also oil piped from Russia.
Danieli to supply special steel bar finishing line for Cogne Italy
Cogne Acciai Speciali has contracted Danieli, during last month, for the supply of a new state of the art finishing line for its special steel bar mill, to maximize plant efficiency, material yield and final product quality. Plant restart after modification is scheduled for end August 2006.
The new line will process stainless steel bars in sizes ranging from 18 to 105 mm diameter rounds and equivalent squares and hexagons, collected in up to 3 MT regular bundles, at rates of up to 50 tonnes per hour
The supply will include a new 42 meter long rake type cooling bed with feeding and delivery tables, cut to length, bundling and collecting facilities plus associated electrical and automation system.
Northwest Pipe announces $10 million order
Northwest Pipe Company announced that it has received a letter of intent from Kenny/Shea/Traylor, a joint venture of Wheeling Illinois, to supply approximately $10 million of welded steel pipe for a water treatment plant. Northwest Pipe will supply approximately 56,000 feet of large diameter steel pipe that will be used in a tunnel that is part of the Brightwater treatment plant in King County, Washington.
The tunnel will be 14,000 feet long and approximately 18 feet in diameter at depths to 260 feet. The pipe will be installed inside the tunnel in four separate lines ranging from 27 inches to 84 inches in diameter. The pipe is expected to be manufactured in the Company's Portland, Oregon division beginning in 2007 with final delivery in 2008. The contract for the tunnel and the related pipe is the first phase of this $1.4 billion wastewater treatment plant.
Northwest Pipe Company manufactures welded steel pipe and other fabricated products in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has nine manufacturing facilities across the United States and Mexico.
Chinese company sourcing thermal coal from Indonesia
Beijing based Zhongxing Henghe Investment Consultancy Co Ltd. has signed an agreement with the Singapore based Kunlun Holdings to import 6 million tons of thermal coal from Indonesia to meet some of the needs of coal-fired power plants in southern China.
Mr Wang Yan, the president of the company's board of supervisors, said that if the power plants in coastal areas sourced coal from abroad, it would ease the pressure on the domestic transportation network. "All the 17 coal-fired power plants recently approved by the National Development and Reform Commission in coastal areas have constructed their own dock, which makes importing coal more convenient," Mr Wang said.
Mr Wang also said that the CIF price of Indonesian coal in the end of 2005, plus duties and value added tax, was around 5% lower than the domestic price. Although the domestic market price of coal has continued to rise, power plants have been unable to pass all the increases in costs onto consumers. They have therefore been looking into cheaper options abroad. Shortages and transportation bottlenecks have also encouraged power enterprises to try to diversify their supply sources. The Guangxi Autonomous Region in southwestern China has been buying coal from Vietnam to feed its power plants.
Romanian Miners accuse management of bad working conditions
Representatives of the Ministry of Economy, of the Ministry of Labor and of the Prosecutors Office continued the investigations in order to establish the reasons for the death of the seven miners and injuring of five in the Anina mine in Caras-Severin.
Preliminary investigations into the Anina mine explosion indicated that the seven miners who lost their lives in the accident died intoxicated with carbon monoxide, which resulted from the firing and burning of the methane gas accumulated in the mine.
Anina miners have accused the management of the mine for the bad working conditions. The relations between the workers and the managers are strained because of the upcoming lay offs to be conducted as part of the national mining restructuring plan. The tragic accident on Saturday only enhanced the desire among some of the workers to submit their requests to be fired.
In response to the accusation from the miners, the Manager of the Anina Mine Mr Niculae Calamarin said that all the labor safety norms had been complied with and that the miners had the best possible working conditions. The mine manager said that the miners are equipped with special gauges to measure the concentration of methane and there are standard protocols to be followed in order to see if there is a hazardous accumulation of methane gas. Before descending into the pit the gas concentration must be measured.
Xuangang produced 3.58 million tons of steel in 2005
Xuangang produced 3.588 million tons of steel in 2005 an increase of 7.81% compared with that of the same period in 2004. In the breakdown, the strategic products amounted 1.19 million tons, accounting 33% of the whole steel output and both made new records.
The company also finished the two phases of maintenance of 80 tons converter in September and October and upgrading of continuous casting machine 4#and 5#, whose capacity were increased.
Dana reports Q3 loss of nearly $1.3 billion
Auto parts maker Dana Corp reported a third-quarter loss of nearly $1.3 billion as a slumping automobile industry forced it to realign its business, triggering massive charges during the period. Its shares tumbled more than 20 percent.
"Obviously, our results are far from acceptable, particularly the operating loss," said Chairman and CEO Mr Mike Burns in a statement. "Many of the challenges we are facing on the automotive side, including higher material costs and lower production levels, are industry wide issues."
Higher energy and steel costs, coupled with woes at Americas two biggest automobile makers, has caused problems for US companies that produce products used in car manufacturing.
