January, 23 2006
Corus plans steel unit in Orissa
UK based steel and aluminium major Anglo Dutch Corus Group is reported to have identified India as one of the low cost high growth market and is exploring opportunities to set up a carbon steel manufacturing facility in the iron ore rich Orissa.
We are exploring selective opportunities for carbon steel business in low-cost, high growth countries like India and Turkey, a Corus group spokes person said. The spokesperson, however, did not comment on the specifics of the project. We do not comment on specific projects as a matter of company policy, she said.
The group has, however, not submitted any firm proposal to the state government.
It is learnt that officials from Corus recently visited Orissa and held preliminary talks with the corporation and the state government. IPICOL is the nodal industrial promotion agency for Orissa. The Corus delegation did not submit any firm plans, but were exploring opportunities for setting up an integrated steel plant in the state, the official said.
Talks on TATA investment in Bangladesh deferred
Talks between the Bangladesh government and India's TATA Group have been deferred until Feb 6, further delaying a final agreement on commissioning of four proposed projects worth $3 billion. The Bangladesh board of investment has proposed the fresh date for the concluding round of negotiations, citing "preoccupation" of officials from both sides, a government official said.
TATA has proposed to set up steel, fertilizer and power plants besides developing a coal mine, making it the single largest foreign direct investment so far in Bangladesh.
The talks were also postponed due to the fact that neither TATA nor Bangladesh government have completed some prerequisites. TATA was supposed to come up with a set of its "minimum demands". Meanwhile, Bangladesh is still awaiting an independent economic assessment of TATA's proposals, assigned to economist Mr Wahiduddin Mahmud.
Common ETP at Tarapur draws flak from small industrialists
The first phase of Rs 18 crore Common Effluent Treatment Plant CETP at Tarapur is set to be inaugurated by end January, small scale industrialists feel that their bigger counterparts are cornering a majority of shares in the venture and they would control it in the long run.
Tarapur Environment Protection Society TEPS, an offshoot of the Tarapur Industrial Manufacturers Association TIMA, began to finally construct the 25 million liter per day ETP on land provided by the Maharashtra Industrial Development Corporation. The Government has given an Rs 9 crore subsidy for the project and the rest was to be raised by TIMA and TEPS.
TEPS has about 1,200 units as members and it is reported that large scale steel and textile industrialists in Tarapur, who are the biggest polluters, have cornered 60% of the shares and will control TEPS working, leaving no room for small and medium scale industrialists.
SAILs VISL under modernization
SAILs Visvesvaraya Iron and Steel Ltd VISL has been making profits after turn around in November 2004 said Mr AK Sahi ED Technical and Legal Services.
The 83 year old mill was founded by the then Mysore King Nalvadi Krishnaraja Wodeyar and SAIL has already announced an Rs 300 Crore package for Modernization. Oxygen plant installation is already on progress and bloom Caster will be provided in the due course said Mr Sahi.
Mittal Steel & Baosteel compete for stake in Bayi Steel
Mittal Steel and Baosteel Group are eyeing possible stakes, 49%, in Xinjiang Bayi Iron & Steel Co Ltd (Bayi Steel) in China's Xinjiang province, which borders Kazakhstan where Mittal Steel runs a steel plant. The Economic Observer reported. The newspaper quoted unidentified officials at Bayi Steel as saying that 'the company is currently in talks with both Mittal and Baosteel on merger issues, but the situation is not clear as the talks are still under way.
Mittal Steel made contact with Bayi Steel as early as 2004 while Baosteel started its talks with Bayi in autumn in 2005, the report said.
Both the steel heavyweights hope to leverage Bayi's proximity to oil-rich Central Asia and the huge iron ore resources in Xinjiang, according to the report. Annual iron ore output in Xinjiang is expected to increase to 10 mln tons over the next five years from two mln in 2005, while large iron ore reserves have also been found in the neighboring country of Kyrgyzstan, the report added.
"We see some synergies with Xinjiang Bayi Iron & Steel because of its location and other reasons. We can fill gaps in each other's businesses. It is into long products, and we are into flat products. Bayi Steel sources some raw materials from Kazakhstan," Mr Sridhar Krishnamoorthy country manager for Mittal Steel China told press. There could also be synergies on the marketing front, he said.
Bayi Steel, with an annual capacity of approximately 3 million tonnes, is the only large steelmaker in the northwestern region of Xinjiang. It plans to expand capacity to 10 million tonnes in the next five years, local media said.
Macarthur Coal positive on coal outlook
Macarthur Coal Ltd said it remains positive on the long-term outlook for coal prices despite reports of early settlements at substantially reduced benchmark prices for lower quality metallurgical coal of the type the company mines.
Macarthur, which supplies pulverized coal injection coal to Asian steel mills, said in its second quarter production report that it is premature to comment on the outcome of price negotiations which will continue to over the next few weeks.
Macarthur said the lower sales were due to customers running down stock levels, a practice it said was not uncommon leading into price negotiations. As well, continuing port constraints impacted on shipments.
But, Macarthur Coal said it still expects to meet or exceed it June year sales target of 4.5 million tonnes despite a drop in second quarter sales. Sales for the year-to-date totaled 2.49 million tonnes. It said the full June year profit will depend on the prices agreed on for the year starting April 1.
Macarthur sold 1.04 million metric tons of coal in the three months ended Dec. 31, down from 1.2 million tons in the quarter a year earlier, the company said in a statement.
Hyundai Heavy targets 23% growth in sales during 2006
The world's largest shipbuilder South Korean Hyundai Heavy Industries Co announced that it is targeting shipbuilding sales of 6.5 trillion won ($6.6 billion) this year, up 23% from 2005. It also said that its non shipbuilding sales from six other business divisions are expected to reach 6.2 trillion won.
The shipbuilder plans to continue focusing on technological development of high value added vessels such as membrane liquid natural gas carriers and super sized liquefied petroleum gas tankers.
"We expect our sales to increase despite fewer new orders because we will receive final payments for the orders received two years ago," said a Hyundai Heavy official. "Although low-priced ship orders signed when the market was sluggish and high raw material costs are likely to affect our profits this year, we set an ambitious sales goal," Mr Hwang Mu-soo senior executive VP of Hyundai's shipbuilding division, said.
The company plans to reach the world's largest annual shipbuilding capacity of 1.5 million metric tons through efficient operation of production facilities in Pohang, which began running last year, and a new block building factory currently under construction in Ulsan.
Major US coal mining accidents of the past
These are some major US coal mining accidents of the past century.
2006 - Sago in central West Virginia Explosion, 12 deaths
2002 Quecreek in Pennsylvania - Flooding 9 miners were trapped but rescued after 78 hours
2001 Brookwood in Alabama - Explosion, 13 deaths
1972 Buffalo Creek in West Virginia Flooding, 125 deaths
1968 Farmington in West Virginia - Explosion, 78 deaths
1947Centralia in Illinois Fire, 111 deaths
1913 Dawson in New Mexico - Explosion, 263 deaths
1909 Cherry in Illinois - Fire, 259 deaths
1907 Monongah in West Virginia - Explosion, 362 deaths
Some of the deadliest mine disasters in the United States:
Andritz bags turnkey pickling line order from NLMK
Andritz of Austria received an order from OJSC Novolipetsk Steel, Russia for a turnkey push pickling line with acid regeneration unit. The order value is approximately 55 MEUR. Start-up of the plant is scheduled for the first quarter of 2007.
The order comprises of a push pickling line specialized for processing silicon steel, acid regeneration plant ARP with oxide treatment system and unit for silicon removal from the waste pickling liquid. All buildings as well as the complete infrastructure, such as cranes, road and rail connections, and communication are included in the turnkey contract.
This new pickling plant is designed for the treatment of a product mix of oriented silicon steel strip, as well as standard carbon steel. It will have an annual production capacity of approximately 300,000 tons, for strip up to 1,300 mm wide and in a thickness range of 1.5 mm to 3 mm. The maximum design speed of the pickling line is 180 meters per minute. Nominal acid regeneration capacity will be 2,500 liter per hour. Optimized balancing of operating fluids and agents will minimize consumption levels and effluents.
Western Australia resources sector surging ahead
Western Australia's resources sector continued its record of exceptional growth last year, with new figures showing the industry is worth more than $33 billion. The increase of 25% was led by the iron ore and oil and gas industries. The release of the figures comes as analysts predict growth of up to 75% over the coming decade.
Mr Tim Shanahan from the Chamber of Minerals and Energy of Western Australia says Government coffers also received a boost, with royalty receipts up $222 million to $1.25 billion. "We now need to make sure that the rubber hits the road with getting those projects that are potential or planned projects for Western Australia on stream as quickly as possible to take advantage of the market conditions that we have so that all West Australians can enjoy further prosperity and increases in their quality of life," he said.
Mr Shanahan says the resources sector is likely to grow by 50 to 75% over the coming decade. The value of resources production in Western Australia has grown by nearly $7 billion in a single year," he said. "It's been growth across a range of areas and that's now flowing through to prosperity throughout the state. We've seen very significant growth in the employment in our sector."
14 Deaths push calls for mine safety overhaul
Due to 14 deaths in coalmine accidents in West Virginia during January 2006, labor, industry and lawmakers are united in demanding that a dangerous subterranean occupation be made safer. Governor Joe Manchin and West Virginia's congressional delegation called for a major overhaul of state and federal mine safety laws. Both the National Mining Association and the United Mine Workers of America said Sunday that they, too, will press for change.
"This is a time for all of us who share responsibility for mining safety to come together and look for ways to make mining safer," said Ms Carol Raulston, spokeswoman for the National Mining Association in Washington. "We have made dramatic improvements over the last 15 years, but there's more to be done."
UMW president Mr Cecil Roberts said Congress and state legislatures must take steps to ensure existing regulations are strictly enforced. "We must also develop new initiatives that will give every miner a vastly improved chance to walk out of a mine after an accident, alive and well and safe in the arms of their loved ones," he said.
Governor Manchin said that he would ask West Virginia lawmakers on Monday to pass three bills being written over the weekend to improve rapid response to mine emergencies and set up electronic tracking technology for lost miners and reserve oxygen stations underground. He also plans to meet with federal lawmakers in Washington.
The Bush administration is reviewing safety equipment in mines after scrapping similar initiatives started by the Clinton administration. Miners' advocates said pulling those initiatives stopped potentially important safety rules from becoming reality; the Republicans cited changing priorities and resource concerns.
Coal production at BHP Mitsubishi coalmines continues
Coal production is expected to continue at BHP Billiton Mitsubishi Alliance mines in the Bowen Basin, despite the company's export terminal being in shut down mode.
Hay Point port manager Mr Sam Bonanno says one loader is expected to be running by early Wednesday at the latest. He says the mines will continue to produce coal in the meantime, stockpiling it and diverting it through the nearby Dalrymple Bay Coal Terminal and Gladstone Port.
Hay Point's second ship loader is being repaired after experiencing problems on Thursday with the telescope that feeds coal to the ships. The port's other ship loader has not been operating since it was damaged earlier in the month.
Bangladesh cold roller S Alam Steel Mills gets nod to float IPO
Bangladeshs Securities and Exchange Commission has approved the initial public offering application of S Alam Cold Rolled Steel Mills Ltd to raise Tk 12 crore from the capital market. An executive of the Commission said SEC is encouraging the manufacturing companies to raise fund from the capital market.
S Alam that produces CR coils will float 12 lakh shares of Tk 100 each to raise the amount. The company started operation in 2004.
Coal group plans to invest $412 million
The Viet Nam National Coal and Mineral Industries Group Vinacomin is to invest VND7 trillion ($412 million) in technology upgrades and production development this year, said company GD Mr Doan Van Kien. He said Vinacomin would focus on automating its coal extraction process and planned to acquire new processing equipment.
Construction work on its new iron and steel factory and the Sin Quyen Bronze Complex is nearing completion and he said the company plans to have both facilities, located in Lao Cai Province, operating by April.
Steel entrepreneur set to join VW board
German steel entrepreneur Juergen Grossmann is expected to join the supervisory board of Volkswagen in May but it remains to be seen whether he becomes its head in 2007, a supervisory board source at the German automaker said. Mr Grossmann is the owner of steel firm Georgsmarienhuette, located near Osnabrueck and his firm delivers steel to VW.
Mr Grossmann is expected to replace the former CEO of ThyssenKrupp, Mr Gerhard Cromme, who announced his withdrawal from the board after a conflict with Ferdinand Piech, who is VW's supervisory board chief.
VW's biggest shareholders, sports car maker Porsche and the state of Lower Saxony, have agreed on Mr Grossmann, the source, who is familiar with the talks between Porsche and Lower Saxony, told.
Porsche is the biggest shareholder of VW with 18.5% while Lower Saxony owns 18.2%.
Zimbabwes Hwange Colliery starts coal exports
Hwange Colliery Company Limited has begun exporting coal to the region with a significant tonnage already sold to Zambia and the Democratic Republic of Congo, an official has said. HCC MD Dr Godfrey Dzinomwa, said the Colliery had managed to strike deals with Zambia and DRC.
The company is still pursuing other countries like South Africa, Botswana, Kenya and Mozambique and is putting logistics to deliver coal to these markets.
The Colliery last year clinched an export order of 3 500 tonnes of coke per month and 5 000 tonnes of coal per month to the Kenyan market alone. We are still developing the market and we are finalizing the Kenyan deal as it has potential to be one of our major customers, said Dr Dzinomwa.
Miners visit Caraga's iron ore sites in Philippines
A group of 6 independent foreign geologists and mining engineers are reported to have left to the mountain ranges near the boundary of Surigao del Norte and Surigao del Sur "Red Mountains" to visit the site where the so-called "World's biggest iron ore deposit" is located.
However, the foreign geologists and mining engineers who requested anonymity asked a few selected newsmen present not to disclose what foreign mining firms they represented saying they are doing it for their personal and private purposes. "We are not promising something, we are here in our personal expenses and volition, we only wanted to find out something that will be beneficial to everybody someday," the mining engineers said.
Leader of the group told Sun.Star Cagayan de Oro that if theories were true that the mountain ranges known as Red Mountains contained iron ores, "it will open opportunities not only for Caraga Region but to the whole country as well".
Already, two foreign mining companies in consortium with local firms owned by Surigao del Sur Governor Mr Vicente Pimentel Jr have shown interest in exploring nickel and chrome ores in the area. The Mines and Geo-Sciences Bureau have approved recently their exploration permits. But before the two foreign mining firms, the Zamora family owned companies Taganito Mining Company and the Hinatuan Mining Company have been operating in the area and nearby areas bringing chromite, nickel, and other ores to Japan for years now.
Nickel Institute names new president
The Nickel Institute has named Mr Steve Barnett its new president. He is on secondment to the institute from BHP Billiton, where he was VP of health, safety and the community in the Stainless Steel Materials Division.
He will be based in the United Kingdom and the Nickel Institute office in Brussels, Belgium.
