January, 07 2006
Power JVs of SAIL & NTPC to be merged
Steel Authority of India Ltd SAIL and National Thermal Power Corporation Ltd NTPC are set to merge two of their existing 50:50 JVs into a single entity. Both the JV companies NTPC SAIL Power Company Pvt Ltd NSPCL and Bhilai Electric Supply Company Pvt Ltd BESCL were established in March 2001 and March 2002 respectively. The board of directors of the respective companies has already approved the proposal and the merger process would begin after the proposal is approved by SAIL Board by January end
NTPC and SAIL were for quite some time considering the merger of these two entities as they are in the same business of power generation and under the same management. Sources said the proposed merger would help both the entities to reduce the operational, administrative and managerial expenses.
At present, the total capacity of NSPCL is 120 MW, and it runs two 60 MW units, each located adjacent to the Durgapur and Rourkela steel plants. BESCL's total capacity is 74 MW and is spread over three units, located at Bhilai Steel Plant. BESCL is adding new power capacity of 500 MW at Bhilai.
Bangladesh issues ultimatum for pipe supplies from India
Mr Mahmudur Rahman Energy and Mineral Resources Advisor of Bangladesh government has warned that all Indian companies would be blacklisted if the Indian company, which has been contracted to supply steel pipes for a gas transmission project, fails to do so by January 25. "If the company fails to supply the pipes by the deadline we will blacklist all the Indian companies" he is reported to have said
He added that the Indian steel tube maker has missed several deadlines to supply pipes for the 60 kilometer Savar-Dhanua transmission line project, which is scheduled for completion by June
Energy officials said that the company was supposed to supply the pipes in November 2005 but shifted its deadline four to five times. Due to delays in the supply of pipes, the project, which is already running one year behind schedule, may not be concluded by June
Alstom bags boiler turbine order from Bokaro Power Supply
Alstom Projects India Ltd has secured an order worth Rs 208 crore for supply of boiler turbine package on a turnkey basis by Bokaro Power Supply Company (P) Ltd which caters to the captive power demand of the steel plant. Bokaro Power is augmenting its existing 330 MW power plant for process steam as well as power generation. The process steam shall be used for the existing steel plant.
Scope of work includes design, engineering, supply, erection and commissioning of 1 x 38.45 MW Back pressure Turbine and 300 TPH PC Fired Boiler.
Alstom has bagged this order for its technically superior design compared to other competitors. The company has earlier executed power boilers for DVC at various locations.
3 cement companies in fray for SAIL's Bhilai cement plant JV
It is reported that Steel Authority of India Ltd (SAIL) is likely to choose one of three leading cement companies, Jaypee Cement, Shree Cement and Birla Corporation for its proposed joint venture unit at Bhilai. It is understood that these three companies had submitted their initial EoI nearly six months ago and subsequently the companies were asked to clarify on certain technical aspects.
The three cement companies are likely to submit the financial details, most likely by this month-end. Thereafter, SAIL would take a final decision in the matter.
The size of the proposed cement plant is likely to be one million tonnes per annum and may be expanded to two million tonnes later. The initial cost of project is put at around Rs 350 crore.
Jaypee Cement, now called Jaiprakash Associates, is an Rs 2,730-crore company. The other two are Kolkata-based. While Birla Corporation belongs to the M.P Birla group, Shree Cement is owned by H.M. Bangur.
8th Auto Expo from 12th to 17th January 2006 at New Delhi
8th Auto Expo 2006 being organized jointly by Automotive Component Manufacturers Association, Confederation of Indian Industry, and Society of Indian Automobile Manufacturers, is slated to be bigger than ever before.
Auto Expo 2006 will have separate pavilions for Commercial Vehicles, Cars, Two Wheelers, Auto Component, and Accessories.
Dofasco Duel Dofasco reaffirms support for ThyssenKrupp offer
Dofasco announced that the Board of Directors unanimously recommends that Dofasco shareholders accept the revised ThyssenKrupp offer of January 3, 2006, at an offer price of $63 per common share, and tender their shares to the offer prior to the expiry date of January 25, 2006.
The Board's recommendation formally confirms the January 3rd recommendation of the Special Committee of Dofasco's Board. The Board further recommends that Dofasco shareholders reject the Arcelor offer announced December 23, 2005, and do not deposit their shares to the offer. The Board is making this recommendation primarily because the revised ThyssenKrupp offer is less conditional than the Arcelor offer, while offering the same
Japans November steel exports down by 21.6%
Japan's steel exports totaled 2.33 million tonnes in November, 21.6% lower than a year earlier, the Japan Iron and Steel Federation said. Shrinking demand across the board caused steel exports to drop sharply for a fifth consecutive month of on-year declines, the data showed. Exports fell 4.2% in October and 4.4% in September.
Japan's steel producers were dealt a particularly heavy blow by dwindling appetite from South Korea and China, the biggest importers of Japanese steel. In November, exports to South Korea plummeted 23.4%, down for the 11th straight month, while those to China ranked 27.8%, marking the third straight month of falls.
Cooling demand from smaller importing countries also hurt Japanese exporters in November, the data showed. Exports to Taiwan, which slipped 3.8%, still looked positively rosy alongside a 38.4% drop in exports to Thailand and a 26.0% fall in those to the US.
Arcelor acquires Sistel shares in Acesita for $59 million
Arcelor has acquired 4.05% of the total capital of Brazilian specialty steelmaker Acesita from local pension fund Sistel for 136mn reais ($59 million). Arcelor has purchased 3.02 million ordinary shares in Acesita for 45.08 reais each. Arcelor had earlier bought stakes in Acesita from Brazilian pension funds Previ and Petros in 2005.
Arcelor told the Bovespa stock exchange last year that the Sistel purchase would give it 76% of Acesita's common voting shares and 40% of its total capital. Under Brazilian law, Arcelor has to launch a tender offer to buy the remaining common shares of Acesita for 80% of the average price paid to Previ, Petros and Sistel. At the same time, Arcelor will launch a voluntary tender offer to acquire up to one-third of Acesita's preferred shares in circulation
Arcelor has not said whether it will make changes in Acesita nor whether it will incorporate the company into its Brazilian steel group Arcelor Brasil, which includes Belgo-Mineira, CST and Vega do Sul. "Arcelor is currently analyzing several restructuring scenarios for its stake in the stainless steel market and in Acesita," Arcelor said
Belo Horizonte based Acesita produces around 200,000 tonnes of stainless steel per year
CVRD unit Caemi buys Rio Verde iron ore mine for $45 million
Caemi, a unit of CVRD announced that it has bought the Rio Verde iron ore mine in the southeastern state of Minas Gerais for $45 million. The company said Rio Verde has recoverable reserves of 37 million tonnes of iron ore and is producing 3 million tonnes a year.
"The acquisition is in line with Caemi's long term plans to boost production and focuses on meeting higher world demand for iron ore," Caemi said in a statement.
Putin proposes international consortium to mine coal in Yakutia
Russian President Mr Vladimir Putin has proposed forming an international consortium to develop the Elginskoye coal deposit in Yakutia. "An international consortium, with Russia playing the role of leading strategic investor, could be an effective form of implementing this project. It would help draw advanced technology and capital, and, concurrently, control this promising resource base," Mr Putin told a meeting which addressed Yakutia's development.
"We must see what organizations plan to develop this deposit, and assess the size of state investment and the end result," the Russian president said. "If Russian Railways intends to put 2 billion of the required 2.7 billion rubles, the question arises: Where are the other shareholders and, generally speaking, do we need them at all?" he said.
Mr Putin said that nearly 30 million tonnes of coal could be mined from the Elginskoye coal deposit annually by 2010.
Government approves Geraldton port upgrade for iron ore
Australian Government has approved $35 million funding for the upgrade of Geraldton Port's Berth 5 to handle some of the expected increase in iron ore exports. Planning and Infrastructure Minister Ms Alannah MacTiernan said that the upgrade to Berth 5 would see an increase in iron ore throughput capacity to approximately 10 million tonnes per annum.
The upgrade package includes a new ship loader at Berth 5 with a design capacity of 5,000 tonnes per hour, new interlinking conveyors for Berths 4 and 5, associated electrical upgrades and additional marine works at Berths 5 and 6. Tenders for the various project components will be issued in January 2006, and the project is expected to be completed by the third quarter of 2007
"In 2004, after a massive upgrade, iron ore started moving through the port for the first time in 30 years at two million tonnes annually," Ms MacTiernan said. Ms MacTiernan said the new dedicated berth would also take pressure off Berth 4, where iron ore and other products such as concentrates, mineral sands and garnet were currently being loaded.
Vinacoal steps up coal production
Viet Nam National Coal Group (Vinacoal) said it plans to exploit 36.4 million tonnes of coal this year, an increase of 7% over 2005, in a bid to cope with the higher demand from domestic and regional markets, especially China. The companys target is to sell 31 million tonnes of coal, in which domestic sales account for 53 per cent and export sales 47 per cent of overall sales, the countrys largest coal producer said.
According to Vinacoals president Mr Doan Van Kien, Vinacoal will accelerate production velocity in the early months of the year in a bid to meet the planned output, and to ensure a stockpile of 8% of the total output to cope with any sudden demand.
Last November Vinacoal was converted from the State-owned Viet Nam Coal Corporation to become the first economic venture in Viet Nam with diversified fields of business.
2004. The Company said it aims to produce 40 million tonnes of coal by 2010, earning US$2.5-3 billion.
Coal is the most abundant mineral in Viet Nam. The coal reserves contain an estimated 2,345 million tonnes of anthracite, 78 million tonnes of semi-anthracite, 38 million tonnes of metallurgical coal, 96 million tonnes of thermal coal and 306 million tonnes of lignite.
Zhongmei Group scores 100 million tons coal trade
Zhongmei Energy Group, one of China's major energy companies, scored more than 100 million tons in its coal trade in 2005, the Economic Information Daily reported. The group, which is owned by the central government, reported a coal trade volume of 100.2 million tons in 2005, an increase of 5.83 million tons from the previous year.
The group became China's first energy enterprise whose coal trading volume exceeded 100 million tons, with coal exports amounting to 34 million tons and coke exports, 650,000 tons, the report said.
Zhongmei's coal output came to 72.4 million tons in 2005, or 20.53 million tons more than 2004, an increase of 40%. Its coke output rose 142 percent to 3.06 million tons, making it one of China's largest coke producers.
Zhongmei's General Manager Mr Jing Tianliang told a recent work conference that 2006 is a crucial year for the group to grow into a 100-million-ton coal producer by the year 2007. The group aims to produce 81 million tons of coal this year, he said
Santa Bbara to start La Japonesa operations in April
Chilean mining company Minera Santa Bbara plans to start production in April at its La Japonesa iron ore mine in north-central Region III. Chairman Leonardo Farkas told "We are going to be moving 1,600t of ore per hour. It is a tremendous project," Mr Farkas added that Output is slated to reach 1.2Mt in the first year and ramp up to 1.5Mt/y.
In addition, the company has now signed a final contract with Caldera port in Region III to ship the iron ore to China, said Mr Farkas. "We plan to have the first ship ready for May or June, at the latest July of this year," Farkas said
Australian mining industry warned to maintain safety standards
The Western Australian mining industry has been warned not to let the boom compromise safety standards and training for inexperienced workers. The state's chief mining engineer Mr Martin Knee says with the rapid expansion of the industry, it is even more important that experienced staff properly supervise new employees.
The fatality and injury rate at WA mine sites has not changed in the last five years.
Mr Knee says inexperienced people can cause safety problems for other workers. "If you're used to working in an experienced team and you've got a new person there everybody needs to be aware that maybe their understanding is not as great as people with more experience," he said.
CVRD sells $1 billion of bonds
Cia. Vale do Rio Doce CVRD sold $1 billion of 10 year bonds to cut borrowing costs and pay for operations. The bond yielded 6.254 percent, three percentage points less than similar bonds Vale sold in August 2003, the Rio de Janeiro-based company said in a statement filed yesterday with Brazil's securities regulator.
The company will use the proceeds to buy back as much as $300 million of its 9 percent guaranteed notes due 2013 that were issued by its Vale Overseas unit. At $1 billion, the sale was the biggest by a Brazilian company in international markets, Vale said.
Dongkuk appoints new Co-CEO
South Korean Dongkuk Steel Mill Co Ltd announced that its Board of Directors has appointed Mr Kim Young Churl as Co-Chief Executive Officer (Co-CEO) of the Company replacing Mr Jun Gyung Do, effective January 6, 2006
TopLiberia denies $30m is 'missing'
Liberia's interim government has challenged a United Nations report alleging that millions of dollars is unaccounted for by its administration. Information Minister Mr C William Allen admitted some discrepancies but said most of the $30m was being transferred between departments. He said the government was preparing a full response to the allegations.
The new parliament has approved a motion calling on the transitional government to undergo an audit and for key officials to be barred from leaving the country until the audit is carried out.
The report had suggested there was a shortfall of $10m from the sale of iron ore, $9m from the maritime affairs department, and $12m from tax revenue in the Liberian interim government's accounts.
