April, 11 2006
Arcelors IUP & Jindal Saw JV for precision SS strips inaugurated
Mr. Jean-Yves Gilet Head of Arcelor Stainless World in the presence of Mr. Indresh Batra MD of IUP Jindal Metals & Alloys Limited inaugurated the installations of IUP Jindal Metals & Alloys Ltd which is a newly created JV with works at Bahadurgarh Haryana India. This JV was created in August 2004 for precision rolling of stainless steel and alloy strips. This new plant has a capacity of around 1,500 tonnes per month and represents a total investment of around $18 million. The partnership is shared between Jindal Saw Limited 73% and Arcelor's fully owned subsidiary Imphy Ugine Precision27%).
Arcelor, through its wholly owned subsidiaries, IUP and Imphy Alloys, is providing the technical know how for special extra thin and alloy products whereas Jindal will be contributing its market intelligence and expertise. However, in order to build its position internationally IUP Jindal Metals & Alloys Ltd will call upon Arcelor Stainless International's global sales network.
IUP is a company within the Stainless Steels Sector of the Arcelor group, specializing in stainless steel and nickel alloy precision strip. IUP's main markets are automotive, industry equipment and electronics.
Jindal Saw Limited is a market leader in the large diameter pipes for energy transmission as well as ductile pipe business in India.
POSCOs proposed port near Paradip under scanner
It is reported that the decision concerning POSCOs request for an exclusive port near Paradip is likely to be delayed with both the Centre and the Orissa government opting for a detailed report on the proposal. Mr K Raghuramaiah chairman of the Paradip Port Trust told newsmen that Pune based Central Water and Power Research Station has been entrusted to study and examine the environmental and technical aspects of the port proposal and is expected to submit its report within a month.
He said that The impact of littoral drift on the Paradip port if another port came up nearby on the same coast required to be examined carefully before the decision was taken. He said that Paradip has been experiencing erosion of the coast on the northern side and accretion on the southern side.
Union shipping secretary Mr AK Mohapatra had asked Orissas chief secretary Mr Subas Pani last February to conduct a study through an independent expert group to ascertain the possible scientific and technical impact of the POSCOs proposed port in Paradip.
IMFAs commissions additional ferrochrome capacity
One of India's large producers of ferro alloys IMFA Groups Utkal Manufacturing & Services Ltd inaugurated its first phase expansion project comprising a 27MVA ferro chrome furnace for producing 35,000 tonne per annum of ferro chrome and to take the company's installed capacity to 157MVA at the industrial complex in Choudwar in Orissa. IMFA completed the project in a record time of 11 months at a cost of Rs 50 crore. The furnace had state of the art control systems and pollution control measures.
IMFA MD Mr Subhrakant Panda said the project aimed to capitalize on sustained growth in stainless steel production, which was driving up demand for ferro chrome and also maintain IMFA's leadership in the industry.
IMFA had taken up the second and third phases of the expansion program announced last year, which would see two more ferro chrome furnaces of 27MVA and 48MVA capacity, and a 120Mw power plant at Choudwar.
The IMFA Group comprised Indian Metals & Ferro Alloys Ltd and Indian Charge Chrome Ltd. It was India's one of the largest producer of ferro alloys with 130MVA installed furnace capacity backed up by a 108MW captive power plant and own chrome ore mines at Nuasahi and Sukinda. IMFA claims to be the only producer in India to produce in excess of 100,000 tonne ferro chrome per annum and was also the leading exporter of the product. It earned foreign exchange in excess of $50 million in 2005-06.
TATA Metaliks may bid for foreign coal mines
TATA Metaliks is reported to be exploring the idea of combining with Hooghly Met Coke & Power Company, a JV between TATA Steel and West Bengal and Industrial Development Corporation to bid for coal mines outside India. Mr Harsh K Jha MD of TATA Metaliks said "We are thinking whether we can bid together for coal blocks outside India." It is also reported that no discussions in this regard have been initiated with Hooghly Met Coke as yet.
Mr Jha explained that five years back TATA Metaliks pig iron manufacturing capacity was at 0.13 million tonne and today it stands at 0.65 million tonnes. As the key factor in driving profitability of the company was raw material cost, company was putting extra effort on backward linkages like iron ore and coal. TATA Metaliks had already applied for iron ore in the western parts of the country. For coal blocks the company had applied in Jharkhand in 2004.
Mr Jha said Hooghly Met Coke would require around 1.6 million tonne of coking coal, once it was fully operational in early 2007. "Taking both TATA Metaliks and Hooghly Met Coke, the total coking coal requirement will be to the tune of around two million tonne" he said.
PGCIL to award transmission line projects for 1500 crores by June
It is reported that Essar, TATA Power, L&T, Reliance Energy, GMR, China Light & Power and Spanish firms Isolex Wat and Abengoa are among a dozen players in the fray for Power Grid Corporation of India Ltds transmission lines in Gujarat and Maharashtra contracts worth 1500 crores to be awarded by June 2006.
The two transmission projects are part of PGCILs Rs 4,700 crore western grid scheme. One project involves building substations and grid lines in southern Maharashtra at a cost of Rs 1,000 crore. The Gujarat project will require an investment of Rs 500 crore.
PGCIL CMD Mr RP Singh said As many as 28 bid documents were purchased and of those, 12 companies participated in the pre bid conference for each of these projects. Another pre bid conference is scheduled on April 18. The companies will be selected by June this year and the projects are expected to be complete by 2009,
Indian government to allot 28 coal blocks
It is reported that in an attempt to increase coal mine exploration for power generation, the government is allotting 28 Greenfield coal blocks with a total capacity of 5 billion tonnes, to government owned companies.
Among the blocks to be allocated are Nuagaon Telisahi in Orissa, Latehar and Gomia in Jharkhand, Parsa and Morga I and II in Chattisgarh, Mara-II-Mahan in Madhya Pradesh, Icchapur in West Bengal and Qulte, Kunur, Lalganj and Sitarampur in West Bengal. Some of the applicants for the coal blocks are AP Genco, Jharkhand State Electricity Board, Tenughat Vidyut Nigam Ltd, Maharashtra Power Generation Company and Chhattisgarh State Electricity Board.
Companies that are allocated coal blocks can sell coal directly in the market, which is not the case under the captive coal block allotment process. This will help meet exploration targets and encourage development of captive coal mines. For allocations under the captive coal block route, the coal needs to be sold to the local Coal India Limiteds subsidiary at a price determined by the government.
Paradip Port plans deep draught iron ore berth
Mr K Raghuramaiah chairman of Paradip Port Trust said that plans are on the anvil to construct a deep draught iron ore berth at an estimated cost of Rs 328.30 crore on a build operate transfer basis. Though the project initially envisaged handling of iron ore only, the scope of the project had been expanded for handling of imported coal. Construction of a berth for clean cargo would also be taken up on BOT basis at an estimated cost of Rs 138 crore, he said.
He said a project for deepening of Channel to handle 125,000 DWT vessels have been sanctioned by the Government at Rs 154.84 crore. On completion of the channel, he said, the depth of the approach channel will be increased from the existing 12.8 meter to 18.7 meter. The work is scheduled to be awarded by May end and is targeted to be completed within 52 weeks.
Mr Raghuramaiah said as several major steel plants and other allied industries were being planned in the hinterland of the port and the port had received requests from three companies for captive berthing facilities.
TATAs ISWP plans investment to increase capacity of wire rods and wires
The Indian Steel and Wire Products Limited, a subsidiary of TATA Steel, has decided to invest Rs 200 crore to increase the production of wire rods and steel wires in the next three years. Mr Nimo K Punwani CEO said the investment would be made to increase the production of steel wires from the existing 60,000 tonnes to 200,000 tonnes and to increase the production of wire rods from the existing 150,000 tonnes to 300,000 tonnes.
Mr Punwani said that the board of directors of the company has approved the Rs 200 crore expansion programs that will be carried out in different phases.
Paradip port creates new records in 2005-06
The Paradip port has created a new record by handling 33.11 million tonnes traffic during 2005-06, surpassing the earlier record of 30.10 million tonnes registered during 2004-05 and a growth of 10%. The traffic handled during 2005-06 included 21.6 million tonnes of export and 11.4 million tonnes of import, both of which were records as well.
A total of 51 operational records were created during the year including handling 1339 vessels, a record rail borne traffic of 22.68 million tonne, a record handling of 6.36 million tonnes of iron ore and 8.27 million tonne of thermal coal mechanically.
The average pre-berthing waiting time of vessels had been reduced from 28.56 hours in 2001-02 to 1.44 hours in 2005-06, the turn around time from 3.99 days in 2001-02 to 2.57 days in 2005-06 and berth day output from 8,833 tonne in 2001-02 to 11,316 tonne in 2001-06.
The port earned a total operating income of Rs 481.40 crore during 2005-06 against Rs 471.38 crore the previous year and after an operating expenditure of Rs 232 crore, it was left with an operating surplus of Rs 249.40 crore.
CVRD denies report of iron ore price settlement
Companhia Vale do Rio Doce denied published reports in China that the company had reached a deal with Chinese steelmakers to raise iron ore prices by 10%. "We don't know of any clients that have entered into price agreements with any suppliers of iron ore," said Mr Fernando Thompson, CVRD's media relations manager. "CVRD has not entered into a price agreement." He said.
The company responded to published reports that a China based Web site, MySteel.com, had reported the company had closed a deal with Chinese steelmakers that called for a 10% increase to iron ore price contracts.
In March, CVRD President Roger Agnelli took the unusual step of confirming that the company was seeking a 24.6% increase to 2006 price contracts.
Evraz to buy vanadium major Stratcor
Evraz Group will buy Stratcor, one of the largest vanadium producers controlled by Strategic Mineral Corporation. Evraz is buying 73% of Stratcor's issued shares and the transaction value will exceed $110 million. Upon consummation in full of the transaction, Evraz Group will acquire outstanding Stratcor's shares representing an economic interest in the Corporation of approximately 73%. Sojitz, a Japanese trading company, will retain a strategic shareholding in the Corporation. The transaction will be financed from Evraz Group's own funds.
According to Evraz President Mr Valery Khoroshkovsky "buying Stratcor will enable Evraz to make up for the deficiency in its own vanadium producing capacity and help the company consolidate on the highly profitable market of vanadium products. The company will also gain access to Stratcor's technologies and marketing experience".
Stratcor controls 40% of world's market for vanadium alloys and agents. The company's revenue amounted to $247 million in 2005.
EU sets May 19 as target date for Mittal Steels bid ruling
European Union regulators have set a May 19 target for an antitrust ruling on Mittal Steel's 19 billion euro hostile takeover bid for Arcelor SA. The proposed takeover was posted for the first time Monday on the list of mergers submitted for approval by EU antitrust authorities.
Under EU rules, the European Commission must decide after an initial month long investigation whether to approve the deal or subject it to a deeper probe that can last up to four months.
Companies need EU approval for mergers if all those involved have a joint global revenue of more than 5 billion euros a year and if at least two of the companies involved each have more than 250 million euros revenue in Europe.
China seems to be backing down on ore price fight
China seems to be backing away from its earlier resolve for not accepting major iron ore price hike for 2006-07 as a Chinese steel industry website claimed that Chinese steel makers had agreed to cop a 10% price rise for shipments in the new contract year, which started on April 1. China's acknowledgement that prices might need to rise at least 10% follows reports that European steel mills were prepared to accept a 12 % to 15% increase.
Analysts said that the Chinese now seemed to be accepting that a double digit price increase for iron ore was on its way. This followed earlier talk by the Chinese Government and steel industry that, following the 72% price increase in 2005-06, the iron ore producers would need to moderate their demands to a roll over of last year's price or, at worst, a 5% increase. At one stage, the Chinese Government made threats to effectively cap imports of iron ore into the country by turning away ships carrying ore at prices above what the central planners considered reasonable.
But iron ore miners denied any settlement had been made. A Rio Tinto spokesman said: "We have not settled." BHP Billiton made no comment on the report.
Traditionally, the benchmark world iron ore price is set in the Japanese market. But the rise of the Chinese steel industry has raised the prospect that the Japanese industry could let its price setting status pass to the Chinese. Analysts said it was notable that the Japanese trade press had been unusually quiet about the progress of iron ore price negotiations this year.
Baosteel, Jinan Steel & CVRD to launch a pellet plant in Shandong
It is reported that Baosteel Group, Jinan Iron and Steel Group and CVRD will jointly set up a 10 million tonne pellet plant in Rizhao in Shandong Province. The three companies are reported to have settled on a deal and started preparation work for the project. CVRD will offer iron ore concentrate for the project through the Lanshan Port and Baosteel has acquired land nearby the port as the project location.
An official with the Rizhao Commercial Promotion Bureau told Interfax that the two phase project will be 2.5 kilometers from Lanshan Port in Rizhao. He said that the project has not reached the approval stage yet.
The Lanshan Port is capable of handling 20 million tons of cargos per year and has just completed construction of a 350,000 tons iron ore berth. In addition, the Rizhao Port, the largest transshipment port for iron ore imports in Shandong, runs a 250,000 tons iron ore berth with 25 million tons of handling capacity per year. The two iron ore berths could handle 100 million tons of iron ore each year, which can completely feed the project's need for iron ore imports.
South Korean shipbuilders dominate in bagging orders
South Koreas shipbuilders ranked No 1 through to No 7 worldwide in terms of order backlogs for the first time ever as of the end of February, a London-based market researcher said. Seven domestic shipyards order backlogs accounted for 35% of the global industrys total of 107.34 million compensated gross tons Clarkson Plc. said.
Hyundai Heavy Industries ranked No 1 worldwide with an order backlog of 10.82 million CGT, it said. Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries Co. were the second and third largest with order backlogs of 7.82 million CGT and 7.44 million CGT it said. Hyundai Heavys two subsidiaries Hyundai Mipo Dockyard Co and Hyundai Samho Heavy Industries were fourth and fifth with order backlogs of 3.93 million CGT and 3.27 million CGT.
MEPS forecast for EU average SS prices
MEPS reported that price increases announced by EU mills during the previous month were successfully implemented. The cold rolled market performed better than the hot rolled. Rising alloy costs and nickel in particular contributed to a positive sentiment for type 304. Whilst, this development was more or less expected, the magnitude came as a surprise. The market was not ready for the aggressiveness that mills demonstrated and low stock levels forced customers to fully accept price increases and be mentally prepared for further hikes. Type 316 products have evolved in a different way. Molybdenum has fallen from record levels - thus impacting on surcharge. In some cases transaction prices for these grades have actually dropped.
Price discipline amongst the mills and lack of import material point to further increases and so does the influence of nickel, whose recent strength had already an impact on alloy surcharges. Molybdenum shows increased evidence of weakness which may lead to a further reduction of surcharges for 316 grades. Stock levels are reported to be low and mills point to full order books for the coming months. German construction has finally emerged from a long term decline but other key markets show weak growth or even stagnation. Seasonal factors have created higher scrap prices but this is likely to change in the second quarter 2006.
For the second half of the year we expect a reversal of the positive trends with transaction prices being under increasing pressure. Basis prices should remain at higher levels than in 2005. The market sentiment suggests that, by the summer, stock levels will be relatively high and some import material will be available from non-European producers. This should cause prices to retreat. In addition, raw material prices, nickel in particular, are forecasted to decline. Producers need to be careful not to raise output substantially, as market forces may quickly switch again in favor of customers.
Rio Tinto wins iron ore mine concession in Guinea
Rio Tinto announced that it has been granted a concession by the government of Guinea to develop a new mine. Rio Tinto had been exploring for new deposits in the Simandou region of the West African country under licenses granted in 1997, spending more than $30-million so far, the company said.
Rio Tinto is now working on a preliminary economic study for the Pic de Fon deposit within the Simandou concession, Rio said, with an investment decision expected by mid 2008. The group is also studying the feasibility of a trans-Guinean transport system for the export of ore from Simandou.
The company also said it was negotiating a possible sale of 5 % of the project to the International Finance, which is part of the World Bank. Also, Guinea's government holds a right to acquire a 20 % stake on commercial terms if the project proceeds.
IPSCO plans investment in vacuum degasser and coil preparation plant
IPSCO Inc has approved $17.7 million expenditure for the installation of a vacuum degasser at its Montpelier Iowa steelworks to provide a more extensive range of steel products as a part of its planned capital expenditures for 2006. The vacuum degasser is a metallurgical refining process that allows production of ultra low hydrogen steel with high cleanliness. When installed, it will help meet growing demand for construction applications such as heavy equipment and bridge manufacturing and for higher strength and large diameter line pipe steels.
The company also approved a $27.5 million expenditure on a coil preparation facility and other related enhancements to its large diameter spiral pipe mill in Regina Saskatchewan. The new prepping area and equipment modifications will improve yield and productivity and increase capacity up to 25%.
Both the vacuum degasser and coil preparation facility are expected to be in operation by the third quarter of 2007.
Mexican miners strike hits 18th day
Mexican miners and metal workers on Monday vowed to continue an 18 day old strike in support of deposed union leader Mr Napoleon Gomez and threatened to extend the conflict to other industries in Mexico. Miners at Grupo Mexico's La Caridad copper mine in the northern state of Sonora began a strike on March 24 and have received support of other miners and steel workers at Villacero's and Mittal Steels installations.
The government and companies consider the strikes illegal, and union representatives refer to some of the walkouts as "stoppages" rather than formal strikes. Steel producers Villacero and Mittal Steel began steps at the weekend to fire more than 1,100 workers who ignored ultimatums to return to jobs at a steel complex in Michoacan state, local media said at the weekend.
Mr Gomez, accused of fraud involving the disappearance of millions of dollars of workers' funds, was ousted in February in a quickly convened union vote, according to the government, which now recognizes a new leader. But many union members do not recognize the February vote and still support Mr Gomez, who has not been seen in public for several weeks.
SDI plans expansion of Columbia City mill
Steel Dynamics Inc plans to add more rolling capacity at its Columbia City mini mill to produce more rail products and add production of light structural shapes and merchant bars. The mill's current primary product is wide flange beams. The new capacity is expected to total 600,000 tons per year and stretch the plants total output to 1.6 million tons per year. The project is budgeted at $200 million.
SDI stated it has sufficient melting capacity with its melt shop to feed raw steel to the expanded operation. Construction should begin this spring and take about 18 months to complete. The initial shipment of the new products is expected in the second half of 2007.
No equipment contracts have been reported, but the scope of the projects includes modifications to the plants bloom beam blank caster to increase its throughput, an additional reheat furnace and a second rolling mill. New material handling systems will also be added.
"We believe this project represents a great opportunity to continue to grow volume and earnings at Columbia City," said Mr Keith Busse SDI president and CEO. "This is a very cost effective investment, all of which we expect to be able to finance from operating cash flow over the construction period. While this investment will expand the capacity of the Columbia City facility, we are not appreciably increasing production capacity for wide flange beams, but are further diversifying the mill allowing us to produce new structural shapes while at the same time increasing the time available on the existing mill for the production of high quality rail.
SDI has been producing wide flange beams at Columbia City since 2002. It later added rail production to the mix.
Praxair ties up with Lianzhong SS Mill for supply of industrial gases
Praxair China, a leading industrial gases supplier in China, has entered into a new 15 year agreement with Lianzhong (Guangzhou) Stainless Steel Corp (Lianzhong) for the supply of oxygen, nitrogen and argon to its stainless steel works, which is under construction in the Guangzhou Economic and Technology Development Zone. Praxair China will build, own and operate a state of the art air separation plant due for commissioning in the fourth quarter of 2006 to supply high volumes of pipeline oxygen, nitrogen and argon to Lianzhong. The facility will provide a backup supply of merchant liquid products to the local market also.
Lianzhong is China's first integrated stainless steel company with overseas investment from Taiwans Yieh United Steel Corp. It will be the largest stainless producer in Southern China. The first phase of the project currently produces 300,000 tons per year of cold rolled stainless steel coils. Phase II, which will begin production in late 2006, will produce 800,000 tons of stainless steel slabs and hot rolled coils. The plant will have melting shop, continuous slab caster, hot strip mill and cold rolling mill.
Praxair China President Mr David Chow said "This agreement is of great importance for the company. It reinforces our confidence in the economic development of China. With six air separation units in Guangdong Province, Praxair will be the largest industrial gases operator in the region and will provide unequalled reliability to our customers. The supply to Lianzhong adds another leading industrial player to Praxair's portfolio of customers. It strengthens Praxair's position as the top supplier to the leaders of Chinese industry."
Praxair China, a subsidiary of Praxair Inc, is the leading global industrial gases supplier in China, serving a diverse group of industries through the production, sale, distribution and value added application of industrial gases.
Yieh United Steel Corporation was founded in December 1988.and is today the largest integrated stainless steel mill in Southeast Asia and the world seventh largest stainless steel producer. The plant is located in Kaohsiung County, southern Taiwan.
US ITC to conduct sunset review for Silico Managese & Silicon
The US International Trade Commission voted to expedite its five year "sunset" reviews concerning the antidumping duty orders on imports of silico manganese from Brazil, China, and Ukraine to determine whether revocation of the orders concerning these products would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
US ITC also voted to conduct full five year "sunset" reviews concerning the antidumping duty orders on imports of silicon metal from Brazil and China.
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.
ChTPZ-Meta opens 8 new scrap yards in Q1
ChTPZ-Meta, a division of the ChTPZ Group set up to supply the group's pipe plants with scrap metal, procured and processed 110,000 tonnes of ferrous scrap in the first quarter of 2006, the group said in a press release. Output of ferrous scrap in the quarter was up 83% from the 60,000 tonnes produced in all of 2005 due to the expansion of ChTPZ-Meta's production facilities, the release said.
ChTPZ-Meta opened 8 new scrap yards in the quarter, in the Kurgan, Chelyabinsk, Sverdlovsk and Tatarstan regions, with combined capacity of 105,000 tonnes. It also acquired Samaravtormet, the biggest scrap processor in the Samara region, at the beginning of this year. ChTPZ-Meta has now increased its capacity to 645,000 tonnes of scrap.
"The development plant for the company calls for further expansion of production and procurement yards and improvement of the production base. In line with the company's strategic development to 2007, production capacity will amount to 1 million tonnes. The development program for 2006-2008 calls for investment of more than $40 million," ChTPZ-Meta GD Mr Yaroslav Zhdan said in the release.
ChTPZ-Meta, set up in 2004, procures, processes and sells ferrous scrap on the domestic and foreign markets. It is now working actively on establishing scrap yards in the Ural and Volga regions. Its subsidiaries include Meta-Yekaterinburg, Meta-Kazan, Meta-Kurgan, Meta-Perm, Meta-Tyumen, Meta-Ufa, and Meta-Chelyabinsk.
Germanys steel production up by 2.8% YOY
Germany produced 4.1 million tonnes of steel in March 2006 up by 2.8% as compared to March 2005 as per information from the country's federal statistics office Destatis. March steel production increased 11.2% compared to February 2006, while the seasonally adjusted value increased 0.2%, said the office.
However, during the first three months of 2006, Germany produced a total of 11.25 million tonnes of steel, which is down 3.4% on the first three months of 2005.
SMS upgrading completed at Republic Engineering
The second and final upgrading stage of Republic Engineered Products steelmaking facilities in Canton was concluded between the end of February and middle March 2006, with the startup of the upgraded 200 tonne EAF and the new 200 tonne Danieli Ladle Furnace.
The existing EAF underwent a major modification carried out by Danieli, which included new upper shell with water cooled panels, Hi Jet units for oxygen and carbon injection and Hi Reg Plus regulation system for increasing productivity and reducing energy consumption. The expansion of Canton steelmaking facilities also included a new 5 strand Danieli FastCast special steel bloom caster, successfully started up at the end of January 2006 and a new Danieli single tank VD station which processed its first heats at beginning of February.
Republic Engineered Products, Inc. is a leading producer of high quality SBQ steel for highly engineered applications for automobiles, off highway vehicles and industrial equipment.
Eastern Corp to buy another coal mine for New Zealand
Eastern Corporation announced an agreement to purchase Straith Industries coal mining operations in the Ohai Nightcaps area in New Zealands South Island. Eastern, through a wholly owned subsidiary, said it will acquire the mining plant, equipment, permits and related assets and approvals associated with the Straith operations for a purchase price of NZ$2 million. Eastern said the purchase price is to be paid out of its existing cash reserves, on the basis of NZ$1.5 million on completion and the balance NZ$500,000 within 12 months of completion. Completion of the purchase is scheduled to occur on or before 31 July 2006.
The Straith operations are located in three separate areas within the Ohai/Nightcaps region, where open cut and underground coal mining operations have been conducted for over 50 years, Eastern chairman Mr Gordon Smith said. The Straith coal is predominantly a sub-bituminous thermal coal, with potential application for use by domestic and industrial coal customers throughout the South Island, he added.
Last year Eastern acquired the Cascade mine, also in New Zealands South Island. Eastern said it is currently exploring 5 kilometers north of Cascade at Whareatea West aimed at proving up known coal resources for mine development.
Explosion reported at AK Steel
It is reported that few explosions rocked AK Steel plant at 11:30 PM on Sunday injuring two workers Firefighters said the explosions came from the area of the blast furnace. Fire officials and company officials think it was a steam explosion from a slag pit. Firefighters said they actually heard two small explosions first and then a larger one right after. Firefighters quickly controlled the 15-20 different fires and believe that production time will not be lost.
A company official said hot metal contacting with water created the explosion. Workers said there was probably water in the slag pit and then someone poured iron in the pit.
Some locked out workers think the situation should have never happened. One worker said, "If they had the right people in there, not those without a clue about what they're doing, they wouldn't have problems like this."
Polyair Introduces VCI-2000(TM) anti corrosion packaging
Polyair announced the introduction of the VCI-2000(TM) line of Volatile Corrosion Inhibitors packaging as a result of Polyair's JV with Grofit Plastics. VCI-2000(TM) represents a complete packaging product line of VCI's that have changed the automotive and steel industries by switching from older traditional corrosion prevention systems to an environment friendly and economical VCI packaging system which protects the exterior and hard-to-reach interior surfaces of metal parts.
Major companies in the automotive and electronics sectors depend on VCI-2000 flexible packaging and emitters to prevent corrosion for products in storage and in transit. The introduction of the VCI-2000 line is in response to customers call for flexible packaging made with the latest polymer technology with vapor corrosion inhibitors that protect ferrous and most non ferrous metals from corrosion.
"The slow release vapor action of the VCI-2000 line offers long term corrosion protection to a variety of metals including carbon steels, stainless steels, copper, brass, aluminum, silver and galvanized steel," said Mr Alan Castle President of Polyair Packaging.
Polyair, a division of Polyair Inter Pack Inc, manufactures a complete line of protective packaging products and integrated packaging systems. Polyair Inter Pack Inc. is an industry leader in the North American protective packaging and swimming pool accessory markets.
Grofit Plastics, a leading Israeli company specializing in Active Packaging solutions and re sealable zipper bags, manufactures a complete line of Anti Corrosion VCI Packaging under the VCI200 brand name for the European and Asian markets.
MMK bought shares in 3 companies in 2005
Magnitogorsk Iron & Steel Works bought shares in three companies in 2005, the Russian steel major said in its report.
MMK bought 27% of Vladivostok Commercial Seaport for $41 million and M-Port, a company that MMK formed with the port's management on a parity basis to run the port, bought 20% of the port's shares. As a result, MMK controls 47% of shares in the port which handled 6.5 million tonnes of cargo in 2005.
MMK bought 96% of the Spetsmontazhizdeliye welded electrode and metalware plant from Schyolkovo for $8 million in installments of 78%, 15% and 3% in July, October and December respectively.
MMK also acquired 100% of OOO MetAl, which holds the license to operate the Uregolskaya coal mine in the Kemerov region for $44 million.
Mittal Steel SA sees Q1earnings 20% down over Q4 of 2005
Mittal Steel South Africa announced that it expected January to March 2006 quarter earnings to be around 20% less than the October to December 2005 earnings.
Mittal Steel SA said that it was issuing the earnings guidance after a senior counsel for Harmony Gold, which has brought charges of excessive pricing against Mittal SA being heard at the Competition Tribunal, said that Mittal SA expects earnings for the 2006 financial year to be 20% weaker.
The company said it expected to report its March quarter earnings on May 10.
Vinacomin mining group posts big losses
Viet Nam National Coal and Mineral Industries Group incurred losses of over $1 million between 1999 and 2004, according to Government sources. Vinacomins financial status came to light during a recent Government audit undertaken as part of a plan to acquire some of the companys assets. The investigation into 11 units of the corporation uncovered several serious violations in investment and construction operations, according to auditors.
Vinacomins financial unit alone was found to have violated regulations on 37 investment and construction contracts which were undertaken without approval from the groups executive board.
The Vinacomin group consists of one mining and three coal companies, a rescue centre, a financial unit, a human resources development centre, two project management boards and a health clinic. The company expects to earn $2.5 billion to $3 billion by producing 40 million tonnes of coal in the next five years. The company posted VND21.7 trillion ($1.4 billion) in revenue in 2005 due to a 2% surge in coal production to 30 million tonnes.
CCCMC's Indian iron ore reference price unchanged during last week
The price of Indian iron ore in China remained unchanged last week. The FOB price for 63.5% of Indian iron ore stood at $54 to $55 while the CIF price was $71 to $72, according to the Indian iron ore national reference price released by the China Chamber of Commerce of Metals, Minerals, and Chemicals Importers and Exporters.
The reference price was initiated as a trial in May 2005 and was created to help regulate domestic trades of Indian iron ore to prevent speculation on raw materials in China's steel industry.
VSC to invest in eight key projects till 2010
The Vietnam Steel Corporation will give priority to investment in eight key projects between now and 2010 to raise its production output, especially production of steel ingots from domestically exploited ores and products that have not yet been produced in the country such as steel plates.
VSC said that three projects will be implemented in 2006 and are planned for completion in 2008. They include the second phase of the expanded Thai Nguyen Iron and Steel Co project, Quy Xa Mine Exploitation Co a JV with Chinese partner and a 2 million tonne hot rolling mill JV. The corporation will invest in some other projects to raise its production capacity of construction steel and industry serving steel, such as 250,000 tonne Da Nang steel rolling mill, 500,000 tonne northern steel plant and a project to raise the capacity of the Phu My Cold rolling mill to 600,000 tonnes per year.
VSC is also mapping out a feasibility study of a project to exploit iron ore in the Thach Khe Mine in central Ha Tinh province with an annual capacity of 5 million tonnes. The project is scheduled to start in 2007 and to be completed two years later. VSC will also fund VND55 trillion into a 4.5 million tonne steel complex, which will use iron ore from the Thach Khe Mine to produce steel ingots and steel plates. The project is expected to be completed in 2015.
VSC said that the biggest difficulty for implementing the above-mentioned projects is obtaining sufficient capital. To solve this problem, the corporation plans to form joint ventures, however, the Thach Khe iron ore exploitation project and the steel complex will be equitised.
UGMKs subsidiary to buy 4 high reversing CR Mill from Danieli Frling
Kirovsky Zavod OCM OAO, a subsidiary of the Ural Mining and Metal Company, one of Russias leading integrated metals producers, has signed a supply agreement with Danieli Frling a German company specializing in the production of cold rolling mills and strip processing technologies.
Under the contract, in the first quarter of 2007 Danieli Frling will supply a four high reversing cold roll mill to Kirovsky Zavod OCM.
Fire at ICGs Viper coal mine in Illinois
An investigation is under way after a fire at an Illinois coal mine owned by the International Coal Group. Officials say there were no injures in Saturday's fire at the Viper Mine in Williamsville, Illinois, about ten miles northeast of Springfield.
Investigators say the blaze started near a belt system that lifts coal up a 300 foot long coal production shaft. About 20 workers safely evacuated.
Schnitzer Steel Industries Q2 earnings fall
Schnitzer Steel Industries Inc said that its second quarter earnings declined to $21 million from $36 million in the corresponding quarter of last year. However, the company said its quarterly revenues rose to $403 million from $216 million in the prior year quarter.
TopPalladon secures equipment for Iron Mountain Project
Palladon Ventures Ltd announced the procurement and purchase of primary ball mill grinding equipment for the Iron Mountain project in Iron County in Utah and is now assembling components for an iron ore processing facility at the mine mouth of the Comstock Mountain Lion pit, near the location of the previous facilities of predecessor company Geneva Steel. The initial projected production capacity is 2,000,000 metric tonnes per year of iron concentrate.
Palladon has purchased a used Hardinge 15.5 x 22' Ball Mill with 3000 hp synchronous motor from a mill in Tooele Utah. The condition of the grinding mill was deemed to be satisfactory for commercial purposes after careful examination and testing was performed over a three day period in March 2006. Initially, Palladon planned on purchasing a mill from the Philippines; however the cost would have nearly tripled the budgeted cost for the ball mill.
Palladon President Mr Don Foot commented "We are thrilled to have found such a vital piece of equipment in our own backyard. We are ensured more expedient delivery as a result. We are also pleased that the refurbishment, delivery, and assemblage costs quoted will enable us to accomplish this at costs within our budget."
The processing plant layout leaves room for expansion and to compensate for lengthening delivery schedules now at 18-24 months for new equipment, Palladon intends to place a new ball mill on order in early 2007.
Palladon Ventures Ltd. is a junior resource company focused on the exploration and development of mineral resource projects worldwide. Development stage projects include the Western Utah Copper Project near Milford in Utah, the Iron Mountain project near Cedar City in Utah in addition to exploration stage projects in Utah, Nevada and Argentina.
Oto Mills and SMS Meer bag order for RD 220 tube mill
In cooperation with Oto Mills SpA of Italy SMS Meer has received an order for the production of an RD 220 tube welding line and strip accumulator. The tube welding line operates with a maximum welding speed of 80 meters per minute.
The entry line incorporates the latest Oto Mills automated technology. All the stands have SMS Meers proven URD design. The computer aided Quicksetting system enables an exact and reproducible roll setting. Furthermore, the automated roll quick change system ensures short size changing times with a resulting high availability of the line. The Oto Mills cutting machine is the twin cold saw cut off unit ensuring a free of burrs cut.
It can produce tubes with outside diameters ranging from 60.3mm to 219.1mm and is also designed for the production of tubular sections the possible dimensions range from 50 mm x 50 mm to 180 mm x 180 mm and from 70 mm x 30 mm to 240 mm x 120 mm.
SMS Meer GmbH forms part of the Tube, Long Product and Forging Technology Business Area of the SMS group.
