January, 27 2006
RINL becomes a net positive company
Visakhapatnam Steel Plant has wiped out all its accumulated losses and has emerged as a net positive company. In 2001-02, our total accumulated losses were Rs 4,600 crore. We achieved a debt-free company status in 2003-04, and have now wiped out all our accumulated losses, Mr Y Siva Sagar Rao CMD told media
In spite of operating the plant at a rated capacity of 120% VSP registered a 2% growth in saleable steel production and the sales had improved by 13% Mr Rao said.
VSP has been earning net profits for the last three years and has taken up a massive expansion project at an outlay of around Rs 8,700 crore. The steel plant has set up an ambitious target of completing the expansion program in a span of 36 months, he added.
Purchaser of Clemenceau challenges Greenpeace to prove claim
The Indian buyer of the decommissioned French warship Clemenceau, which is heading to India to be scrapped, has challenged environmental group Greenpeace to come out with facts to support their claims that breaking of asbestos in Alang ship yards have caused asbestosis or cancer among workers.
Owner of Shri Ram Vessels Mr Mukesh Patel charged the environment group with spreading "disinformation campaign" to stop the entry of the aircraft carrier. "I challenge them to prove by giving names and details of workers who have got asbestosis or cancer on account of working in Alang ship yards," he said. "We have reports from Red Cross and other health organizations to prove that there are no known cases of asbestosis or cancer that have occurred in the Alang Ship breaking yard and all fears being expressed are ill-founded as we are taking all precautions to protect the workers from asbestos that is present in the ships," he told press
Mr Vidhyut Joshi, former vice chancellor of Bhavnagar University who has made a detailed study of the problems associated with the ship breaking industry, said "the ship breaking procedure creates pollution of land, sea and air." According to Mr Joshi, one of the most dangerous forms of pollution is the one caused by breaking the asbestos which is present in all ships. Inhalation of asbestos dust in the long run is believed to cause asbestosis, a chronic lung disease that is irreversible and akin to asthama.
TATA Steel gives shape to Bangladesh steel plant
TATA Steel has finalized the details of its proposed 2.4 million tonne steel plant in Bangladesh except for the natural gas pricing. "We have resolved most of the issues, including location and land allocation for the project, incentives we will receive, the technology to be used and the infrastructure to be provided by Bangladesh authorities," MD Mr B Muthuraman told press
"We are now discussing the gas pricing issue, for which we will be going over to Bangladesh in February and meet with the Bangladesh Board of Investment, " Mr Muthuraman added.
The company has short listed three locations in the western part of Bangladesh. "We have the option of selecting one of them," said Mr Indronil Sengupta, who is in-charge of the Bangladesh project. The final choice would have to meet several criteria, including that of presence of a good water source, he said.
SAIL values NINL assets at less than Rs 1000 crore
Steel Authority of India Ltd expects to spend less than Rs 1,000 crore to complete the acquisition of Orissa based state owned Neelanchal Ispat Nigam Ltd NINL, which will provide it additional capacity besides rich coking coal and iron ore reserves.
SAIL chairman Mr VS Jain informed the steel ministry that though the actual valuation of NINL would be done by the department of disinvestment, its own estimates suggested that the valuation was going to be less than 1000 crore. Mr Jain also informed the steel ministry that acquisition of majority share in NINL and its subsequent merger with Sail would take 10 months after the process of evaluation was completed by department of disinvestment.
Steel ministry has already given in principle clearance to SAIL to proceed with acquisition of NINL. SAIL is expected to conclude a MoU with Mining and Mineral Trading Corporation for the proposed acquisition. MMTC is the main promoter of NINL, which also has minority participation from Orissa Government through Industrial Promotion and Investment Corporation.
NINL currently produces about 0.6 million tons of pig iron and 0.4 million tons of structural.
TATA Steel redrafting agreements with Iran
It is reported that TATA Steel is redrafting agreements with the new Iranian administration for its proposed steel plant projects and an iron ore exploration & mining venture. "We are redoing the agreements. There has been a slight delay in the project because of presidential elections held in the middle of last year and subsequent change in administration" said MD Mr B Muthuraman.
Tata Steel is partnering with the Iranian Imidro in the ongoing Hormozgan Steel project at the Persian Gulf Special Economic Zone port city of Bandar Abbas to build a 3 million tonnes steel slab and billet facility.
It has also planned to venture in the exploration and mining of unexplored iron ore mines at Gol-e-Gohar mines in Kerman province with Imidro.
Tata Steel has a 49% stake in all projects and its investments work out to around $ 700 million in Iran.
BHP-Mitsubishi to cut coking coal prices to Japan Tex
BHP Billiton Mitsubishi Alliance, a coal mining venture, agreed with Japanese steel producers to lower prices of coking coal used in steelmaking, the Tex report said, without saying where it got the information. The report didn't identify the steelmakers involved in the negotiations.
BHP Billiton Mitsubishi will cut high-quality coking coal prices from the Peak Downs, Saraji and Gooneylla mines by $10 a ton, or 8 percent, the Tex report said. Lower-grade coking coal will be reduced by as much as $20, or up to 16%, from a year ago, according to the report. BHP Billiton, the world's largest mining company, more than doubled its coking coal prices last year to $125 a ton.
Talks between coking-coal suppliers and steelmakers haven't yet been concluded, as Canada's Elk Valley Coal is yet to negotiate with Japanese steelmakers, the Tex Report said. Ariane Gentil, a spokeswoman for BHP in London, said the company would make an announcement on this year's coking coal prices once it had settled a majority of its contracts.
The price is marginally below what the market was expecting, but they will be making quite some money for anything above $100 a ton,'' said Mr Neil Boyd Clarkof ABN Amro Asset Management Ltd in Sydney. We had a lot of coal prices rumors and talks of sales at substantially lower prices for lower quality coal, and this report gives the market a certain amount of confidence.''
This is still a pretty good outcome,'' said Mr Mark Pervan, head of research at Daiwa Securities SMBC, in Melbourne. The price settlement for lower quality coking coal was better than expected.''
BHP Billiton's shares rose as much as 86 cents to A$25.94
Mittal Steel makes $22.7 billion unsolicited bid for Arcelor
Mittal Steel Co, the world's biggest steelmaker, made an unsolicited bid to buy Arcelor SA for Euros 18.6 billion euros ($22.7 billion) in a combination that would transform the industry. Both companies' shares were suspended today. By buying Arcelor, billionaire owner Mr LN Mittal would control about 10% of the global steel industry, more than three times as much as his closest rival. The transaction would be the biggest ever in the steel industry
As per a report in a Dutch newspaper Mittal Steel NV today announces that it has launched an offer to the shareholders of Arcelor SA which will create the worlds first 100 million ton plus steel producer. The offer values each Arcelor share at 28.21 which represents a 27% premium over the closing price and all time high on Euronext Paris of Arcelor shares on 26 January 2006, a 31% premium over the volume weighted average price in the preceding month, and a 55% premium over the volume weighted average share price in the preceding 12 months.
This offer values Arcelor at an equity value of 18.6 billion on a fully diluted basis.
The new company will have:
Unprecedented scale, scope and synergies
Pro-forma* 2005 annual revenues of approximately US$69bn and EBITDA of US$12.6bn (*IBES estimates)
Pro-forma market capitalization of approximately US$40 billion
Leading positions in NAFTA, EU, Central Europe, Africa and South America
Expected synergies of US$1 billion from purchasing, marketing and manufacturing efficiencies
Exceptional raw material resources with a high degree of iron-ore self sufficiency
Reduced volatility through geographic and product diversification
Security of long-term contracts through high value-added products
Low cost profile and high growth prospects from developing markets
Leading position across a range of key product segments
Ability to supply customers on a global basis
A dividend policy representing c. 25% of earnings over the cycle
Under the terms of the offer, Arcelor shareholders will receive 4 Mittal Steel shares and 35.25 cash for every 5 Arcelor shares (equivalent to 0.8 Mittal Steel shares plus 7.05 cash for each Arcelor share). In addition, they will have the right to receive a cash or stock mix in any proportion they elect, provided that 25% of the aggregate consideration paid to Arcelor shareholders is paid in cash and 75% in stock. The maximum amount of cash to be paid by Mittal Steel will be approximately 4.7bn and the maximum number of Mittal Steel shares to be issued will be approximately 526.6 million, assuming the conversion of the outstanding Arcelor Convertible Bonds (2017 OCEANEs).
Ministry to make El Mutn bidding decision next week
Bolivia's mining minister Mr Walter Villarroel next week will decide what steps to take on the bidding process of the El Mutn iron deposit. "Only some minor adjustments are required and the process undoubtedly will go forward," he said. The decision, Mr Villarroel's first as a new minister under President Mr Evo Morales, will aim to usher forth the bidding process, "because if we don't that could seriously hurt the sector," he said.
The previous government postponed El Mutn bidding for 60 days from the day that interested companies were due to submit proposals to operate the deposit in Santa Cruz department by December 21.
The companies that purchased bidding rules were EBX Siderrgica of Brazil, China's Shandong Luneng Group, Mittal Steel (, Argentina's Siderar and Jindal Steel & Power of India.
El Mutun is one of the world's largest iron ore deposits, with some 40 billion tonnes of reserves over 60 sq km at an average content of 50% iron. The deposit is close to the Bolivia-Brazil border, 41km south of the city of Puerto Suez. According to original bidding rules, operations would have to start 3 to 4 years after project startup, reaching minimum production of 1.5 million tonnes per year
UN says Asia will lead Global Economic Growth in 2006
The United Nations says the global economy will continue to grow this year as it did in 2005, led by the major economies of Asia. However, the organization says employment rates have not matched the economic expansion, which is threatened on a number of fronts.
The United Nations report predicts the economies of East and South Asia will expand by 6.5% this year, supporting the continuation of a two-year worldwide economic recovery. However, the projections represent a decline from overall growth rates in 2004, and reflect what the report calls a maturing of the global economic recovery.
The report said Asia's strong showing is due in large part to projected growth rates of nine percent in China and eight percent in India. The document predicts growth in China will decline by about one percentage point because of cooling investment in the steel and cement industries, consumer electronics and real estate. However, the economies of Malaysia, Thailand, Singapore and Taiwan are likely to be boosted by an improving economy in Japan, and by rising global demand for electronics, one of their major exports. The economies of India, Pakistan and Bangladesh are likely to be boosted by continued demand for textiles and growing investment in infrastructure, health and education.
ThyssenKrupp hikes prices for cold rolled stainless steel products
ThyssenKrupp AG said its Acciai Speciali Terni unit will increase its base prices for cold-rolled stainless steel flat products in March by Euro 50 per metric tonne. An additional increase of Euro 50 per tonne is planned for April.
Acciai Speciali Terni is the Italian subsidiary of ThyssenKrupp Stainless AG, which is focused on the production and distribution of flat-rolled stainless steel products, as well as high-performance materials such as nickel-base alloys and titanium.
S Korea's Dongkuk cuts shipbuilding quality plate prices
South Korea's No. 3 steelmaker Dongkuk Steel Mill Co on Thursday cut the price of its shipbuilding quality SBQ plates by 20,000 won ($20.70) per ton on the dollar's depreciation against the won and a fall in raw material prices, the company said.
The move lowered the price of the plates to 615,000 won per ton from the previous 635,000 won, the company said. As of Thursday, the price cuts since June 8 last year amount to an aggregate 135,000 won, it said.
Four strand continuous bloom caster modernized at Volzhsky
The four strand continuous bloom caster No. 1 at the Volzhsky Pipe Plant Works of the TMK Group near Volgograd in Russia has been put into operation successfully and punctually following a thorough modernization by SMS Demag AG, Germany.
The modernization has increased the annual production and brought the product quality into line with the heightened market requirements. SMS Demag has worked out a modernization concept which embraces those components of the continuous caster which are essential for maximum production and quality.
The supply scope includes the complete mould and oscillating area, comprising the mould itself, in cassette design, the stirrer and resonance oscillation system, the modernization of the spray cooling system and the hydraulic withdrawal and straightener adjustment. The supply scope also contains a torch-cutting unit and the modernization of the automation system at Level 1 for the mechanical equipment supplied.
The mould and oscillating area is designed such that in addition to the section sizes 150 to 228 mm diameter it will be possible in the future to cast round sections up to 400 mm and square sections from 150 x 150 mm to 360 x 360 mm. The annual capacity is around 650,000 tons.
The Volzhsky Works manufactures pipe steel grades for the oil and gas industry and is a part Russian pipe major TMK
Japan's imports of steel surge by 20% in 2005
Imports of steel by Japan jumped 20% during 2005 to 8.2 million tons, including 2.5 million tons from China, the Tokyo based Ministry of Finance said on its Web site today. Exports of steel fell 7.8% to 32.2 million tons. Japan's imports of Chinese steel soared 44% in 2005.
Japan's steel exports fell 12% in December from a year earlier to 2.66 million tons, the Ministry said. Imports fell 23% to 536,943 tons last month.
Japanese imports of iron ore fell by 20% to 10.1 million tons in December, the ministry said. Japan imported 132.3 million tons of iron ore in 2005 or 1.9% less than 2004
CVRD to invest $4.6 billions in CAPEX during 2006
CVRD will increase capital spending by 11% in 2006 and has budgeted $4.6 billion this year for capital spending compared with $4.1 billion in 2005, the company said. It also said it will pay a minimum of $1.3 billion of dividends to shareholders in 2006. CVRD CEO Mr Roger Agnelli wants to boost capital expenditure to increase iron-ore output, improve the company's rail and port facilities, Brazil's largest, and expand into new areas such as nickel, copper and coal.
Vale plans to boost production by 13% this year, powered in part by strong demand from China, CEO Mt Agnelli said in Rio de Janeiro press conference. CVRD plans to produce 264.4 million tons of iron ore this year, up from 233.2 million tons last year. Production will rise further to 300 million tons in 2007, Mr Agnelli said.
The largest amount of investment, $2.1 billion or 46% is planned for Vale's iron-ore and other ferrous-metals operations, while transportation systems such as railroads, terminals and ports will received $785 million or 17% of the total. The biggest increase comes in steel, where the company plans to invest $112 million in 2006, the statement said. It made no capital investments in steel in 2005.
The company is generating enough cash to both substantially increase investment and pay a large dividend,'' said Mr Jorge M Beristain a resource analyst with the New York unit of Deutsche Bank AG. This can also be sustained in the medium term even if iron-ore prices fell, which is unlikely.''
China's rolled steel price drops 13.1% in December 2005
China's rolled steel price in December 2005 dropped by 13.1% YOY for over production, said sources with the People's Bank of China. The price was 2.2% down from November 2005, said the PBOC.
Monthly corporate goods price data released by the central bank also showed that the price of pig iron and rolled steel had declined for more than eight months consecutively. The price of pig iron in last December dropped by 2.9% month on month and 9.5% down year on year, said the PBOC.
The raw coal price in December 2005 rose by 0.3% from November with coke price down 0.3%
According to the National Development and Reform Commission NDRC, price of rolled steel in the Chinese market began to drop from the second quarter of 2005 and Chinese steel enterprises saw profits down to large extent since last August.
Chinese coal supply & demand to strike balance
The country's overall coal supply and demand is expected to strike a balance this year, but shortages and oversupply may coexist in different areas, the nation's top economic planning agency said. China experienced coal shortages in 2003 and 2004 due to heavy demand stemming from brisk economic growth, leading to a sharp rise in coal prices.
The shortage lessened last year due to continued growth in supply and a crackdown in overexpansion of energy-guzzling industries, according to a statement by National Development and Reform Commission. As a result, coal inventories saw a substantial recovery since April, with stocks at power plants reaching 24.83 million metric tons by the end of last year, a level considered normal, the statement said.
The bottleneck in railway transportation was also not as serious as in previous years. The nation's railway system transported 2.31 billion tons of commodities last year, up 6.6% from 2004, the statement said. Of the total, coal shipments by rail reached 1.07 billion tons last year, up 8% from the previous year, the National Development and Reform Commission said.
Looking ahead, the transportation bottleneck in northwestern, northeastern and southwestern China will remain serious this year, but transportation in other areas will remain normal, the statement said.
ThyssenKrupp orders three HSM coiler systems to SMS Demag
ThyssenKrupp Steel Germany has placed an order to supply three new coilers for the hot strip mill in Bruckhausen, Germany. As early as the year 2000, SMS Demag had modernized the finishing mill and, in 2005, the roughing mill. Once the new coiler system has been modernized, the Bruckhausen hot strip mill, erected in 1955, will again become a high-output, state-of-the-art facility.
The supply scope includes the mechanical equipment, the complete electrical and automation systems and a new process model for the cooling section.
The new coilers, of the latest design with Step Control, are to replace the existing coiler system. Together with the customer, a revamping concept has been developed with a view to minimizing the necessary plant shutdown. Four brief shutdowns of 16 and 36 hours respectively and one continuous shutdown of nine days will be needed for the entire revamping. Operation with two coilers will definitely take place throughout the full revamping period from May till September 2007, with the exception of four days, and therefore no production losses are to be expected.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
Malaysian Timah stepping up coal output
PT Timah, the world's largest tin miner and refiner, may increase coal output 78% this year to tap rising demand and counter falling tin prices, an official said. The company plans to mine 1.6 million tonnes of thermal coal up from about 900,000 tonnes last year, said Ms Lily Harlina, head of marketing at PT Timah Investasi Mineral, the tin producer's coal mining and trading arm.
"We're boosting coal output because the price outlook is better than that for tin," Ms Harlina said. "It's also because we are getting orders from buyers in Japan, South Korea, and Europe." The company last year secured contracts to sell 300,000 tons of thermal coal to each of Japan's Mitsubishi Corp and South Korea's LG Metals. It exported 80% of the coal produced last year, Ms Harlina said. "We're in negotiations right now with buyers from Japan, South Korea, Malaysia and others," Harlina said. "We sold coal at US$43 a ton in December and we expect prices at the same level this year because it would be difficult for us if prices fall, given the export tax imposed on coal."
Fitch upgrades Severstal from "BB-" to B+"
Fitch Ratings has upgraded OAO Severstals Senior Unsecured rating to "BB-" from "B+" and National Unsecured Rating to A+(rus) from A(rus). A Stable Outlook has been assigned. At the same time, Fitch has affirmed Severstals Short-term "B" rating. Approximately USD700 million of public debt is covered by this rating action.
The rating upgrades reflect Severstals demonstrated ability to manage a strong financial profile due to its significant shareholder control of raw materials, diversified geographical sales and revised acquisition policy based on prudent financial metrics.
"Severstals ratings reflect its focus on a value-added product mix dominated by flat steel products aimed to automotive industry," said Ms Sonya Dilova, Associate Director in Fitchs Corporate Group in London. "The ratings also take into account the companys strong credit ratios and profitability compared with its domestic and international peers."
The Stable Outlook reflects Fitch Ratings expectation that Severstal will maintain a satisfactory financial and business profile in the future despite the continued cyclical nature of the industry. The companys scale, its track record in integrating new businesses, its low-cost structure, diversity of sales and production capacity, coupled with its healthy financial profile, will help to support its future performance.
IUD reports net profits rising 73.3% in 2005
The Industrial Union of Donbas IUD boosted net profit 73.3% in 2005 to $390 million, the company said. Gross profit rose 71.5% to $590 million and sales were $4.5 billion.
TopUkraines biggest iron ore pellet producer mulls price hike
Poltavsky GOK, Ukraine's biggest iron ore pellet producer could increase its prices 10%-30% in the coming months, an owner of the company said.
"We think prices will go up 10%-30%," Mr Konstantin Zhevago, a major PGOK shareholder, told an investment forum in Kiev, adding that the new prices would not be higher than Brazilian producers are charging or Japanese consumers are willing to pay.
Investment to increase coal traffic in Siberia
Over RUR20 Million to Be Invested in Development of Altaiskaya Station of Western Siberia Railway in 2006. The station development aims at increasing the traffic of Kuzbass coal to the European part of Russia by the Middle Siberian Railway.
The project includes extension of the third and fourth car yards for heavy 100-car train accumulation. This is to significantly improve shunting and train formation operations. An additional semi-hump will be constructed to streamline the train sorting operation.
Solgas threatens to reopen Ajakuta case
Solgas Energy Incorporated of US has threatened to reopen a petition it filed at an international arbitration panel in London against the federal government of Nigeria over alleged breach of concession contract signed in 2003 on the rehabilitation, operation and maintenance of Ajaokuta Steel Company Limited ASCL. Also, the company is threatening to expose in the international media, the alleged fraud perpetrated by certain top officials of the federal government in the process of cobbling the concession agreement.
The US based energy firm has also initiated litigation in Texas against the current managers of Ajaokuta Steel, Global Steel Holdings Limited, a subsidiary of Ispat Industries, over alleged "breach of confidentiality" in a deal struck between the two companies prior to the take over of the ASCL by the latter.
Solgas was contracted by the government in June 2003, to revive the Ajaokuta Steel Company, recoup its investments and return same to the government within 10 years. But the firm reportedly requested for the termination of the contract in August 2004, based on certain conditions, including a refund on investments in the 14 months it ran the steel plant.
Solgas, through its attorneys, said it is giving the Nigerian government up to the 31st of this month to take the necessary action, failing which "we intend to file the amended petition detailing by both name and deed what we believe to be a sordid tale of greed, bribery and breach of fiduciary duty".
China's large steel makers to speed up integration
China's large steel companies are speeding up industrial integration and restructuring under the nation's newly issued policy for the development of the steel sector, which requires optimizing the industrial layout.
In 2005, the National Development and Reform Commission, China's chief economic planning body, expressed that the top ten domestic steel makers should strive to occupy over 70% of the country's steel production volume by 2020. Besides, the country is determined to control its annual steel production capacity within 400 million tons by 2010, which is lower than this year's capacity.
According to statistics, the ten largest Chinese steel companies had occupied about 48% of the domestic market in 1992, which, however, slipped to 32% in 2005 as more medium and small sized steel companies have risen in recent years. In 2005, 4,847 steel makers in China have produced a combined 340 million tons of steel.
Judge rules that union to be part of Sago mine probe
A federal judge ruled that officials with the United Mine Workers union UMWU can accompany state and federal investigators while they gather evidence underground for the investigation of Sago mine. US District Judge Robert E. Maxwell ordered ICG to allow the union representatives to enter the mine, saying the UMW has decades of expertise in mine disasters to offer.
The federal Mine Safety and Health Administration took the owner of the Sago Mine, International Coal Group Inc., to court on Wednesday after ICG blocked union representatives from entering the nonunion mine. The coal company argued that the union's presence would hinder the investigation and that the union was only trying to boost its organizing efforts.
Investigators ventured into the mine late in the afternoon, about 24 hours later than planned, to begin determining the cause of the January 2 explosion that led to the deaths of 12 coal miners.
Peabody Energy sees profit rise by 121% in 2005
Peabody Energy reported a 121% increase in net income for 2005 on strong demand and prices. Peabody's net income for the year ended December 31, 2005 rose to $3.1 million, compared with $1.4 million the year before. Year end revenue figures for 2005 rose 33% to $4.8 billion, versus $3.6 billion in 2004.
The company also reported a 135 percent increase in net income for the quarter ended December 31, 2005 to $1.2 million, compared with $510,000 for the same quarter the year prior. For the quarter revenue was $1.23 billion, compared to $1.02 billion for the quarter ended December 31, 2004.
"We are adding low-cost capacity to meet market demand and re pricing contracts at much higher levels," said Peabody President and CEO Mr Gregory Boyce, in a statement.
St. Louis-based Peabody Energy is one of the world's largest coal producers.
Ukraines Q1 industrial output seen up 3% YOY
Ukraines industrial output will probably increase between 2% and 3% on the year in the first quarter, the same as in 2005, the Economy Ministry said in a report
We cannot expect industrial output to speed up in the first three months after gas price have risen, the ministry said. Besides, investors are waiting for the results of parliamentary elections.
POSCO awarded for innovation
POSCO and ReignCom were awarded the prestigious "Edison Award for Innovation" yesterday, putting Korea on the list of recipients for the first time. POSCO, the country's largest steel maker, was commended for Finex. Mr John P. Keegan, chairman and president of the Edison Preservation Foundation, presented the award to POSCO President Mr Kang Chang-oh
The award was granted in partnership by the American Chamber of Commerce in Korea's Partners for the Future Foundation and the Edison Preservation Foundation to recognize the "outstanding achievements and innovation in the conduct of business," AMCHAM said in a statement.
POSCO now has the right to use the trademark "Edison Innovation Award" to promote their services and products.
Kentucky mine safety chief resigns
Kentucky's top mine safety regulator has resigned in the midst of a legislative session that could bring major changes to state mining laws. Mr Paris Charles ED of the Kentucky Office of Mine Safety and Licensing since July 2004 said he wants to spend more time with his family in Pikeville.
"I still have a home there. I have some personal issues in Pikeville that are going to require my attention for some time," Mr Charles 49 said in an interview yesterday after his resignation was announced. He declined to elaborate on those issues.
Steelworkers join for negotiations with Elk Valley
Two locals of the United Steelworkers in the Elk Valley, Fording River Local 7884 and Elkview Local 9346, met for three days this week to discuss and coordinate common bargaining issues and strategies for upcoming negotiations with Elk Valley Coal Corporation. Elkview's Local 9346 is already in its third week of bargaining and Fording River's Local 7884 is set to begin bargaining on March 1, 2006.
Both locals are seeking fair and just collective agreements for their members, who have helped make the EVCC the number one coal producer in North America.
Union members, who for years have settled for small increases because of depressed coal markets, expect their fair share now that coal markets are high and EVCC is making record profits. Because of the hard work and productivity of union members, shareholders have earned a 412% increase in the value of their shares.
Subsea steel tube umbilicals for Shell from Aker Kvaerner
Shell UK has extended its frame agreement for the supply of subsea steel tube umbilicals with Aker Kvaerner Subsea by two years and expanded the scope to include Shell Norway. The value of the new contract is estimated to be approximately NOK 230 million. The frame agreement is for the supply of subsea steel tube umbilicals and associated engineering personnel.
The first project executed under the agreement will be the Howe Phase 2 project, which will use the same cross-section as the Merganser umbilicals. Under the existing agreement, signed in 2001, Aker Kvaerner has delivered umbilicals for six Shell projects in the British and Dutch sectors of the North Sea including Scoter, Pelican, Howe, Merganser, K15/K7 and K8.
Frame agreements help promote an optimal way of working: alignment in the pursuit of HSE excellence; incorporation of lessons learned for efficient execution, resulting in shorter delivery times; and close dialogue on future needs, so we can allocate capacity for Shell, says Mr Raymond Carlsen, executive vice president Aker Kvaerner Subsea.
The steel tube umbilicals will be manufactured at the Aker Kvaerner Subsea facility in Moss, Norway.
Cline Mining completes feasibility study on Lodgepole Coal Project
Cline Mining Corporation announced that GR Technical Services Ltd. has delivered to the Company on January 20, 2006, a feasibility study on the Lodgepole Coal Mine Project. The Lodgepole Coal Project is located in the Crowsnest Coalfield of south eastern British Columbia.
The Study estimates total measured and indicated in-place coal resources at the Coal Project of 154.572 million tonnes and total inferred coal resources at the Lodgepole Coal Project of 3.228 million tonnes. The Study further estimates total proven and probable coal reserves for the Coal Project, which are utilized for the planned coal production from the above coal resource base, of 40.599 million tonnes
The Study contemplates the production of 2,000,000 tonnes of saleable low volume bituminous pulverized coal injection coal over a 20 year mine life.
GR Technical Services Ltd is an independent engineering and consulting company. The environmental protection input and design contained in the Study were undertaken by EBA Engineering Consultants Ltd.
Massey Energy revenue increases 18% in Q4 of 2005
Massey Energy Company reported that its coal revenues for its fourth quarter ended December 31 2005 increased by 18% to $424.4 million from $360.9 million in the fourth quarter of 2004. Due primarily to the Company's capital restructuring, Massey reported a net loss of $211.8 million for the fourth quarter of 2005 compared to net income of $1.4 million in the comparable period in the prior year.
Excluding the loss on debt repurchase and exchange offers, EBITDA in the fourth quarter of 2005 increased to $84.4 million, compared to EBITDA of $68.7 million in the fourth quarter of 2004. Produced tons sold in the fourth quarter increased to 10.0 million tons from 9.6 million tons in the fourth quarter of 2004.
"We remain confident in our ability to achieve increased production in 2006," said Mr Don L Blankenship, Massey's Chairman and CEO. "We have expanded our production capacity during 2004 and 2005 with new mines, new equipment and additional shifts at existing mines. We continue to train and mentor our less experienced miners and expect productivity gains during 2006. We expect significant margin expansion during 2006 and into the foreseeable future, as we continue to experience strong pricing for Massey's high quality, low sulfur steam and metallurgical coals," continued Mr Blankenship.
Mr McClean named President of CMC
Directors of Commercial Metals Co named Murray Mr R McClean as the new president of the group, a holding company for mini mills, steel fabricators and processors, and metal recycling operations. Mr McClean formerly was executive VP and COO of the group, and will continue to serve as COO. Mr Rabin will continue as chairman and CEO
Mr McClean continues his responsibilities for directing, coordinating and administering all CMC operations, and assisting the CEO with strategic planning of business development.
He joined Commercial Metals in 1985 as managing director of its marketing and distribution office in Sydney, Australia. In 1993 he was appointed president of the International division of the Marketing and Distribution segment. He was named president of CMC's Marketing and Distribution segment in 1999, executive vice president and COO in September 2004.
Clemexs inclusion rating systems wanted by steel makers
Clemex Technologies Inc announced that it has made several sales to major steelmakers in North America and around the world in the last few months. The last order received from Azovstal Ukraine. In the last two months, other steel companies that placed orders with Clemex include Arcelor France, Hyundai Steel and Hyundai Steel Research, South Korea, Nucor Steel, Nebraska US and Algoma Tube, Sault Ste-Marie Ontario Canada
Clemex's renowned Inclusions Rating system CIR allows steelmakers to quantify non-metallic inclusions in steel slabs and billets, and thus evaluate the cleanliness of their steel. Steel cleanliness is an important quality measure in the steelmaking process and since the purity of steel is directly proportional to its price, steelmakers have a strong incentive to cast their steel as clean as possible.
Mr Clement Forget president and CEO of Clemex Technologies commented, "The sudden interest for our CIR system by steel companies is very good news for us. We have sold more systems in the last few months than in the past year and there is a lot of demand in this field in foreign countries, specifically in Asia and Eastern Europe. Clemex has an excellent reputation throughout this industry and is in a very good position to capture a good share of this new market opportunity."
Clemex Technologies Inc develops, manufactures and markets image analysis systems and software used by quality control and research microscopy laboratories. Clemex's customer base spans over many countries in America, Europe, Asia and encompasses major Research and Development Centers, prestigious Universities and large manufacturing industries in various fields including automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.
Caterpillar announces record 2005 Results
Caterpillar Inc effectively responded to unprecedented customer demand in 2005 and reports full year sales and revenues of $36.339 billion and profit per share of $4.04. Sales and revenues rose 20% from 2004, and profit per share was up 40%
Fourth-quarter sales and revenues of $9.663 billion and profit per share of $1.20 were both all-time records for any quarter in Caterpillar history.
"2005 was an incredibly strong year for us," said Caterpillar Chairman and
CEO Mr Jim Owens. "With the surge in customer demand and production, our employees, suppliers and dealers have responded in spectacular fashion to help us realize the opportunity. We should celebrate our 2005 accomplishments knowing Caterpillar is extremely well-positioned going forward."
Caterpillar projects $40 billion in sales and revenues and profit per share between $4.65 and $5.00 for 2006
Assmang half year profits dip
South African iron ore miner Assmang said that it had been affected by negative market conditions and forecast weaker earnings for the six months to December. Assmang said headline and attributable earnings per share would be between R69 and R77 per share, compared to headline earnings of R99,49 per share and attributable earnings of R101.87 per share in the previous year.
The firm, which is majority-owned by South Africa's biggest black owned diversified miner, African Rainbow Minerals (ARM), said sales volumes and in respect of metal prices, particularly for manganese ore, ferromanganese and ferrochrome alloys had been affected by the negative market conditions.
Assmang also said it had approved the construction of a new export iron ore mine on its Bruce, King, Mokaning properties (BKM mine), in the country's Northern Cape Province. Construction of the BKM mine would start in the early part of this year, with the first phase resulting in a new 8,4-million ton per annum export iron ore mine at an estimated total capital cost of R3,2-billion.
