January, 29 2006
NINL production effected due to blockade
It is reported that production has come to a near halt at state owned Neelanchal Ispat Nigam Ltd after over 150 people blocked the three main gates of the steel company on Friday night. NINL is situated in the Kalinga Nagar industrial complex and some people, who lost farm land and homestead because of the project, are demanding jobs in the company.
Taking a cue from the grieving tribal who have blocked the Daitari -Paradip highway after 12 tribal were killed in police firing while opposing the land acquisition by TATA Steel, over 150 people from 50 families displaced by NINL came in droves around Friday midnight and squatted before the two main gates of the company demanding jobs in lieu of the loss of land. The blockade effectively stopped all entry and exit to the plant.
The NINL plant, built in the early nineties over 2500 acres had displaced 639 families. The Rs 1400 crore plant, a JV between MMTC and the Orissa government had then signed a pact to provide one job to each of the displaced families. But the company management could give jobs to only 330 displaced people as the plant has very little money to run its day to day operations.
NINL management decided to cut production and switched off the sinter plant. With talks between the officials and the agitators flopping, the NINL management is planning to switch off the blast furnace tonight. I am trying my best to run the plant for as many hours as possible. But if the blockade is not called off by 10PM we would have no other way but to stop production, NINL MD Mr SK Sarna told. Though the plant has iron ore inventory for the next five days and coal for the next 25 days, Sarna said he would not be able to run the plant with only 250 people.
Usha Martin keen to enter Chinese market
The world's second largest wire rope manufacturer Usha Martin Limited is keen to enter the Chinese market for which it is carrying out a detailed study, its Chairman Mr BK Jhawar said. Mr Jhawar said since China was a low cost producer with a huge market, Usha Martin was certainly interested in looking at that country.
However, he said since China was a complex market, an in-depth analysis was required before taking a final decision on whether to set up marketing infrastructure there or to put up a greenfield plant. "A decision will be taken within 18 months."
Mr Jhawar said that the Houston plant would be operational by March 2007 when the first phase of production was expected to start at an investment of around Rs 46 crore for capacity of 25,000 tonnes per annum to cater to the high-end market in US.
JSPLs net up by 2% during Q3
Jindal Steel & Power Ltds un audited results for the quarter ended December 31, 2005 are as follows:
The company has posted a rise of 2.03% in the net profit to Rs 126.54 crore for the quarter ended December 31, 2005 as compared to Rs 124.02 crore for the quarter ended December 31, 2004.
Total Income, net of excise, has increased by 10.4% to Rs 636.15 crore for Q3 FY 05-06 from Rs 576.11 crore in Q3 FY 04-05.
Adhunik Metaliks plans Rs 750 crores CAPEX
Adhunik Metaliks is implementing an Rs 750 crore expansion plan, which will increase its capacity to half a million tonne per annum at the Rourkela plant by the end of the next fiscal.
"Our expansion will be one of the most effective as the power cost will be half our peers. Moreover, with a 30-year lease of coal mines from the Orissa government, we are assured of 38 million tonne reserves," Mr Manoj Agarwal MD of Adhunk Metaliks, said. The company has already invested Rs 250 crore, and the capacity has been increased to 2.6 lakh tonne per annum.
Adhunik will raise Rs 284 crore through debt and Rs 53 crore through internal accruals to finance its expansion plans. The company may also come out with a public offering for Rs 100 crore within two months.
The Kolkata based Adhunik Group, manufacturers of value-added steel products, is planning to consolidate operations. Adhunik Metaliks, which produces auto-grade and stainless steel, would be the core company of the group. The other three firms include Adhunik Corporation, which will produce TMT bars and wire rods for the construction industry, Adhunik Alloys that will manufacture sponge iron, and Adhunik Steel, which will take care of the services business of the group.
Jaiprakash Associates forms mining venture in Madhya Pradesh
Jaiprakash Associates Ltd has formed a joint mining venture with Madhya Pradesh State Mining Corporation to explore a coal block estimated to have 70 million tonnes of extractable coal reserves.
The joint venture company, called Madhya Pradesh Jaypee Minerals Ltd, will develop the coal block located in the state. The venture is expected to produce 2 million tonnes of coal each year.
JAL and its associate companies will also set up a 1,000-megawatt coal-based power plant in Madhya Pradesh. The project will be implemented in two phases, according to sources. The first phase will build a 500-MW power plant and will use coal from the mine in Madhya Pradesh.
Madhya Pradesh State Mining Corporation will not invest any money in the joint venture and is guaranteed of assured income by way of a facilitation fee on each tonne of coal produced.
Excerpts from CNBC-TV18's interview with SAIL Chairman
[i]Q: What explains the indifferent performance?[/i]
A: The selling prices of iron and steel items have been quite low, not only in India, but outside too. In Q3, we have seen that the average price reduction is by 13%, so that alone makes a difference of about Rs 800 crore on account of the price.
The second thing is the input cost that is the coking coal price had gone up quite high. So, the coking coal price increase in the global market would be the reason, but it is fine, because ups and downs remain and particularly the steel sector is highly volatile. In 2003, we had seen the prices were high and in 2004 too, it was the same. In 2005, the prices generally remained low and now the prices are generally stable. We understand in case of coking coal, the prices in the global market might come down and this is the indication we are getting.
[i]Q: Is not the pressure on margins likely to continue? Are we likely to see Q4 worse than Q3?[/i]
A: Stability is likely in prices, and in the month of January we have seen stability, while in the month of February too, we anticipate that there will be stability. It is true that China had become a net exporter of iron and steel items and it is one of the reasons why the prices have remained under pressure. But this is a phenomena basically in China and Asian countries, it is not happening in case of Europe or American market. So, with the price level which is almost 30% down in case of HR coil, I think it has already reached the peak and now there will be stability.
[i]Q: What is going to be the outlook as far as input costs, profitability and sales are concerned for Q4?[/i]
A: So far, as the coking coal prices are concerned normally most steel producers in the world they go for annual contracts. The annual contracts with the Japanese have already started and one or two rounds of discussions have already taken place. My own assessment is that the coking coal prices for the next period will now come down. How much will it come down, is a question of negotiation which will happen in the Japanese market, but when I say that there is stability, it is not only that, but in coking coal there might be some reduction. Coming to the steel prices, having seen a reduction of 30-31% in case of HR Coil during April to December period, now I think the prices are stable and there will be no more reduction in the month of January. The prices were generally rolled over and I think 2006 will see a comparatively stable period.
[i]Q: You do not see more softening of prices from here?[/i]
A: I do not think so.
[i]Q: What is likely to be the outlook in Q4?[/i]
A: For Q4, I would not be able to comment on the numbers, because we do not talk about profitability and the profit numbers, but I can say that whatever prices have been prevailing in Q3, will remain more or less the same in Q4.
[i]Q: In Q3, you have added volumes by about 8%. Is it possible that you will be able to make up for falling prices through an increase in the amount of steel that you sell?[/i]
A: We hope that for the entire year our production should be higher by about 7% and if it is so, then the economic factors are also better. All our plants are in a very good condition, as far as production front is concerned, it will remain good.
[i]Q: With Bhilai Steel Plant coming on stream what is likely to be the impact as far as sales and margins are concerned?[/i]
A: As far as the volume is concerned, I remain upbeat. I am quite optimistic because economic development of the country is taking place, even now the consumption pattern in the country is quite good. In the next couple of years, I see the demand of steel at the rate of about 7%-7.5%. So this provides reasonable comfort as far as the volume is concerned.
Prices do get governed by the international phenomena. In India, the volume is more but the prices have been down. But it has happened because of the China factor and as I said earlier, after reaching a reduction of almost 29%-30%, I think the peak has come now and there should be stability in the global market on the pricing front too.
[i]Q: Net-net what is going to be the outlook for Q4 because you are saying that there is going to be an easing as far as input prices are concerned? You are saying that pricing pressure is also easing and you are going to sell more steel, by about 7% in Q4. So what is going to be the net impact?[/i]
A: I would say the physical performance, in terms of volume of production and techno-economics, Q4 would be better than Q3. In fact, in the first three quarters our performance has been about 8% better than the previous year. But as far as the numbers are concerned, I am not in a position to pass any judgment and put any number because these are all price sensitive numbers, I would refrain from that.
[i]Q: Your stock is already under pressure. Can you assure your investors that the worst is over?[/i]
A: I want to tell our investors that the company is very strong, financially as well as fundamentally. Market dynamics play a role. It is a volatile market and the company in terms of physical performance is doing well and they are also in the growth path.
[i]Q: There was a talk of mergers with Neelanchal Ispat Nigam
Ltd, What is the status on that. [/i]
A: We are in a discussion with the Orissa government. They are supporting. So, I do not find any hiccups. As we go forward, we should get Neelanchal as one of our units.
[i]Q: On the acquisition price.[/i]
A: Independent valuer will determine it.
[i]Q: What about the IISCO merger.[/i]
A: The final hearing for IISCO merger has taken place on 16 January, every step has been taken care of and we are awaiting the final orders now.
[i]Q: You demand enhancement of duty protection levels. Is that at budget discussed for you? [/i]
A: No, I think as far as the steel manufacturers are concerned, the duty was reduced from 30% to 5% because the prices were ruling high. Subsequently, when the prices have reduced by almost 30-31%, some adjustments are required, particularly in case of commodities like zinc, copper or any other item, whatever is the prevailing duty. In case of other commodities, maybe there should be some parity between the steel and other commodities.
[i]Q: What about the custom duty on input? Would you seek a reduction or do you expect it? [/i]
A: Normally on the input, the duty level remains lower than on the finished product. Supposing only 5% duty level is there, in case of steel items, there should be parity. On input too, it should be similar.
Arcelors official position on bid launched by Mittal Steel
As per a release from the Arcelor, company has taken note of the hostile takeover bid launched by Mittal Steel on Arcelor shares with the goal to acquire a controlling stake in the company. Arcelor underlines the hostile character of this move that takes place without prior discussions or consultations between both companies.
Arcelor's board of directors will meet today to take position on this offer.
Arcelor will hold a news conference on the subject on Monday, January 30 at 13h00 CET (12h00 GMT) in Paris.
South Korea concerned over increased SS imports from China
The rapid increase in the capacity of Chinese mills is causing alarm among South Korean stainless makers. According to a source at Korea Iron and Steel Association, South Korea's stainless imports from China increased 600% in 2005 to 14,000MT from 2,300MT in 2004. South Korea's total stainless imports were 94,800MT in 2005, up from 55,600MT in 2004, according to the association's data.
"Stainless makers meet very frequently to discuss the China issue and now they are discreetly monitoring steel imports from China day-to-day," the source said.
Stay cool note from Arcelor chief Mr Dolle
Arcelor CEO Mr Guy Dolle today called on employees of the European Steel Group to stay cool following a hostile takeover bid from the world's biggest producer, Mittal Steel.
Over the next few months, we must stay cool while remaining determined, said Mr Dolle in a message to Arcelor associates that was received by AFP today. This is a hostile offer, made without any preliminary discussions with the management of Arcelor, he added.
Mining triumvirate push for higher iron prices
Pricing talks between the big Japanese steel producers and the global iron ore giants, Rio Tinto, BHP Billiton and CVRD of Brazil, have reached an impasse. The mining triumvirate, which between them control almost three quarters of the global sea-borne iron ore trade, are demanding between 20% and 25% more. It sounds steep but last year the iron oligopoly secured a 72%price increase.
Iron ore spot prices are up 20% on the year, giving the miners strong arguments that the annual contract should reflect a similar uplift.
The annual price negotiations between Nippon Steel, JFE and Kobe Steel and their mining counterparts are a steel industry benchmark, setting the rate, from April 1, for a vital steel ingredient.
Protest march against coal mining in Venezuela
Protesters from northwestern Venezuela marched Friday through the streets of Caracas, which is hosting the sixth World Social Forum to protest plans for mining coal on their land. 150 indigenous protesters were accompanied by some 2,000 representatives of Venezuelan environmental and leftist groups, and activists from Brazil, Canada and Colombia.
The protestors want President Mr Hugo Chez to state that no concessions will be granted and that the land that belongs to indigenous people will be formally awarded to them.
The state-run enterprise Carbozulia plans to begin mining coal along the Socuy River in order to boost total annual output from eight million tons in 2005 to 20 million in the shortest possible timeframe in February. Carbozulia and the CVRD have formed a consortium to mine coal in the region.
Arcelors union remember Ispat Ireland closure
The surprise bid touched off an anxious response from unions at Arcelor. The CFDT union declared it is not good news for employees of the group; it is not good news for jobs.
The union said in a statement that back in 2000, the steel giant headed by Mr LN Mittal, described as the sole leader of his empire, decided one day to close the company Ispat Ireland because its results did not meet the expectations of the Mittal group. Mittal Steels statement that there was a billion euros of synergy with Arcelor means closing installations and eliminating jobs said a representative of the CGT union at Arcelor.
In contrast CFDT said the corporate culture at Arcelor is one of dialogue and should be defended, adding that its analysis was largely shared by other European unions at Arcelor.
IUD mulls $3.6 billion investment in steel & coke by 2010
Industrial Union of Donbas IUD, one of Ukraines biggest steelmakers, will invest $3.6 billion in developing its steel and coking facilities by 2010, the company said.
About $1.6 billion would be invested to boost output from the current 3.8 million tonnes to 7.5 million tonnes at Alchevsk steel mill in the Luhansk region by 2010, the company said.
Arcelor to play anti-globalization card
Arcelor is to invoke the specter of an aggressive globalize business threatening European working practices as it seeks political support to fight off a hostile offer tabled on Friday by Mittal Steel
The board of Arcelor, the second largest producer, meets this afternoon and is expected to put out a statement designed to play on the fears of Arcelor's 78,000 employees in France, Luxembourg and Spain. Arcelors CEO Mr Guy Dollis expected to say that the Mittal offer, a mixture of cash and shares, undervalues the European market leader. He is also likely to attack the share structure of the proposed company. Arcelor is critical of the Mittal familys dominant position, both in Mittal Steel, where the family owns 97% of voting rights and in a merged group where the family would control 64%.
Mr Dollwill also attack the $1bn synergies Mittal Steel claims a merger would bring, and he will argue that the two businesses are less compatible than Mittal Steel suggests.
An Arcelor executive said yesterday: "We will be recommending to shareholders not to accept the offer. There is a fundamental difference in culture and vision. We have a strongly European culture which the staff of Arcelor is very keen to conserve and the board considers strength. We believe in sustainable development, health and safety, staff representation on the board, citizenship and good corporate governance and we saw on Friday a strong show of support from the Luxembourg government."
Mittal to court the French government on Arcelor
It is reported that steel baron Mr LN Mittal will be meeting French ministers in an effort to avert political protests about his bid for Arcelor. Mr Mittal has also offered to move his head office from Rotterdam to Luxembourg to please Luxembourgs government, which holds a 5.6% stake in Arcelor and considers Arcelor as a strategic interest. But he fears the biggest potential for a political backlash is in France, where Arcelor is a big employer
A spokesman for Mr Thierry Breton, the French finance minister, said yesterday: "M Breton is concerned about this offer and he wants to know if it is a hostile bid. The French government is being vigilant. Arcelor is a European company whose future is in the economic and employment interests of Europe. There are clear rules for takeovers and these rules must be followed." However, there are indications that Arcelor's strategy could backfire. One French government source said it would be unlikely to block a takeover by Mittal Steel.
Mr LN Mittal said that he would reassure Breton tomorrow morning. "I am meeting Thierry Breton on Monday. We will address his concerns and an important message is that we are not taking anything away from France; we are going to honor all the commitments that Arcelor has made." He denied that a takeover would lead to a downgrading of workers' rights. "This is a positive move forward; this is a merger of two strong European companies to create a much larger global champion with a strong European focus," Mr Mittal said. "Arcelor itself is a global company working in different cultures and so are we. In Germany, for example, we have union nominees on the board, and we have them on our US board. We have unions all over the world and we work very well with them."
Belgian Governments stand on takeover
Belgiums Walloon government called on Mittal Steel and Arcelor to respect existing agreements with Belgian steel unions after the world's no. 1 steel company launched a takeover bid for its closest rival. The regional government in southern Belgium said it would seek more commitments before it agreed to sell its 2.4% stake in Arcelor. The company employs 15,000 people in the French-speaking region of Wallonia, which has been hard hit by steel job losses in recent years.
The workers are worried, with good cause, said Mr Elio di Rupo, the head of the Wallonia government. Their legitimate questions have to be answered. He said the government had contacted Mittal, Arcelor and trade unions to assess what a takeover would mean for the region.
Saudi Arabias ZIIC profit up by 51.6%
Zamil Industrial Investment Company ZIIC, the international manufacturing and fabrication group has reported a sharp increase in 2005 profits. Our strong performance in 2005 was further enhanced by the Kingdoms vibrant economy, as well as favorable conditions in the GCC, said ZIIC chairman Dr Abdulrahman Al Zamil.
The group has posted net profits, after Zakat contributions, of SR106.4 million ($28.4 million) for the year ended December 2005, representing a net increase of 51.6% in net profits over 2004.ZIIC turnover for 2005 grew to SR2.4 billion ($631.7 million), a 20.5% increase over 2004
Dr Abdulrahman Al Zamil, commenting on the groups financial results, added Our sector businesses, namely Steel and Air Conditioning, have done remarkably well in the Saudi market. We have been awarded major contracts locally and abroad. We have expanded our manufacturing plants and capabilities in the Kingdom, while new production facilities are being commissioned in the GCC, Vietnam and India. We foresee sustained growth ahead, and we aim to achieve even better results for our shareholders.
ZIIC, founded in 1998, headquartered in Dammam Saudi Arabia employs more than 5,500 people in 50 countries. It provides leading air conditioning, pre-engineered steel buildings, structural steel products, process equipment, transmission and telecommunications towers, open web joists and decks, and architectural glass processing solutions to meet the requirements of the global construction industry through its three sector businesses: Zamil Air Conditioners, Zamil Steel Industries and Zamil Glass Industries.
Mr Mittal may give higher offer for Arcelor
Steel baron Mr LN Mittal refused to rule out upping his hostile bid for Arcelor. He is reported to have told a press conference in London that he did not think he would need to increase the 28.21 Euro per share bid for Arcelor announced this morning, which he described as 'very attractive'.
However, replying to a question about whether he would rule out a higher offer, he said no, but added that he had no plans to do so. He added We are very confident that we will get the full support from Arcelor shareholders to make this happen.
He urged Arcelor's management, which rejected the takeover approach from the Dutch-listed steel giant, to take part in 'friendly discussions' about the merger. Mr Mittal said his company spoke to Arcelor on January 14 to 'float the idea of the merger. However, he added that we did not find a positive response from the chief executive of the company. 'We like Arcelor's management and would like to engage them in dialogue,' he said.
He also said he did not expect the proposed merger would face any regulatory hurdles. He said the deal would reduce volatility not only for Mittal Steel and Arcelor but for the industry as a whole. He added that Mittal Steel would honor all commitments to Arcelor in terms of employment, growth and investment.
A look at Mittal Steel\'s Empire
Chronological events in building up Mittal Steel Empire
-1989: Acquires Iron & Steel Company of Trinidad & Tobago, an integrated mini mill steel complex.
-1992: Acquires Caribbean metal services company Sibalsa, a producer of steel slabs from the Mexican government.
-1994: Acquires Sidbec-Dosco, Canada's No. 4 steelmaker from the government of Quebec.
-1995: Forms holding companies Ispat International Ltd and Ispat Shipping, which provides global transport.
-1995: Acquires integrated steel plant Karmet of Kazakhstan along with coal mines, iron ore mines and power generation assets from Kazakhstan government
-1995 Acquires Germany's Hamburger Stahlwerke, a wire rod producer.
-1997: Forms Ispat International NV, which controls operations in Mexico, Trinidad & Tobago, Canada and Germany
-1998: Acquires Inland Steel Company of Indiana, the 4th largest steelmaker in US, which has two downstream joint ventures with Nippon Steel of Japan.
-1999: Acquires Unimetal SA of France, including Trefileurope and SMR, making it the largest producer of high quality wire rods in Europe.
-2001: Acquires ALFASID, the largest producer of steel in North Africa with its own iron ore mines from the Algerian government
-2001: Acquires Sidex, an integrated steel plant from the Romanian government.
-2003: Acquires Nova Hut, the largest steel producer in the Czech Republic from Czech Government
-2004: Merges Ispat International NV with LNM Holdings to form Mittal Steel.
-2004: Acquires International Steel Group of the US for $4.5 billion from Mr Wilbur Ross, making it the world's largest steelmaker.
-2004: Acquires Polski Huty Stali, Poland's leading steel producer, from Polish government
-2004: Acquires Bosnia's BH Steel
-2004: Acquires Macedonian production facilities from Balkan Steel
-2004: Acquires Atansore iron ore mines in Kazakhstan
-2004: Acquires rolling mills in Skopje
-2004: Acquires a controlling stake in South Africa's ISCOR
-2004: Acquires Petrotub, Siderguica and in Tepro in Romania from state
-2005: Buys Kryvorizhstal from the Ukrainian state
-2005: Acquires 36.67% stake in Hunan Valin Steel Tube & Wire Co Ltd China
Afghanistans largest coalmine rusting away
North of Kabul, just beyond the famed Salang pass in the Hindu Kush Mountains, about 150 miners work in the soot filled tunnels at the Karkar mine largest in Afghanistan, producing a daily output of around 50 tons of coal.
Accidents are frequent, and for those injured in mishaps there is little likelihood that they will receive adequate medical attention. Explosions, fires and other incidents in recent years have taken roughly 200 lives.
A shepherd reportedly discovered the Karkar mine in 1938, after which the coal was extracted by loading it into bags and hauling it out by donkey. From the late 1950s through 1988, the mine operated with the help of specialists from what was then Czechoslovakia, and was modernized with equipment imported from Warsaw Pact states. At its operational peak, the mine employed almost 2,000 workers. After the Soviet military withdrawal from Afghanistan in 1989, the mines infrastructure has slowly rusted.
Corus faces price war after Mittal Steel's bid for Arcelor
Anglo Dutch metals group Corus faces a likely price war with Mittal Steel, if their proposed 18.6 billion takeover of Arcelor goes ahead as the deal would give Mittal Steel significant interests in Corus's key western European markets for the first time, pitching Mittal Steel against Corus in the race for contracts to supply the construction and automotive industries.
Corus declined to comment, although the company is thought to believe that a Mittal Steel -Arcelor deal could actually lead to higher and more stable prices, since it would reduce the recurring problem of oversupply by helping to consolidate the fragmented steel industry.
Gas price growth threatens mining industry in Kazakhstan
Growth in price for gas in Kazakhstan is threatening the competitiveness of the country's mining and metallurgical companies, Mr Nikolai Radostovets ED of the association of mining and metallurgy companies of Kazakhstan, said at a meeting of the Industry's Ministry's competition committee.
"We are talking about unprecedented price growth for a wide range of companies and the public. This will threaten the competitiveness of Kazakh products. In particular, at Sokolov-Sarbai Mining Production Association SSGPO this will lead to the company being forced to reduce sales," Mr Radostovets said.
KazTransGaz has recently warned of an increase in gas prices in regions that use imported Central Asia and Russian gas, due to increased purchase prices for this fuel. Mr Radostovets said that the company's subsidiary KazTransGaz Distribution plans to increase gas prices for SSGPO by more than 40% and for Kazkhrom by 47.9% compared with December 2005.
He said that KazTransGaz Distribution has not yet signed a contract with OAO Gazprom for supplies of gas to consumers in Kustanai region, where SSGPO, Kazakhstan's biggest iron ore producer, is located.
The association of mining and metallurgy companies of Kazakhstan represents the interests of mining and metals companies in the Eurasian Industrial Association, which in addition to Kazkhrom and SSGPO, includes AO Kazakhstan Aluminum & AO Eurasian Energy Corporation both in Pavlodar region, AO Shubarkol Komir in Karaganda region and AO Mugotex in East Kazakhstan region.
Interpipe Corp mulls shifting operation towards services sector
Interpipe Corp., Ukraines biggest producer of steel pipes, plans to shift much of its operation to services sector, Mr Maksym Beliachenko, a company official, said.
The services, such as tourism, entertainment, transport, logistics, informational technologies and engineering, will increase to 50% of Interpipe turnover from the current 12%, he said.
List of top steel producers
Based on the past data of 2004 as 2005 figures are not published as yet, but including some of the changes in 2005, the top ten steel makers in the world are
| 1. Mittal Steel | 75 million tonnes |
| 2. Arcelor | 51 million tonnes |
| 3. Nippon Steel | 32 million tonnes |
| 4. JFE | 31 million tonnes |
| 5. POSCO | 31 million tonnes |
| 6. Bao Steel | 21 million tonnes |
| 7. US Steel | 21 million tonnes |
| 8. Corus | 20 million tonnes |
| 9. Nucor | 18 million tonnes |
| 10.ThyssenKrupp | 18 million tonnes |
