April, 12 2006
NMDC posts record turnover for 2005-06
The National Mineral Development Corporation has achieved a record turnover of Rs 3,534 crore and profit before tax of Rs 2,523 crore for the financial year 2005-06 as against Rs 2,230 crore and Rs 1,224 during 2004-05 respectively. NMDC CMD Mr B Ramesh Kumar told media that the company did a record excavation of about 31.5 million tonnes of iron ore, about 24.5 million tonnes of run of mine and 22.9 million tonnes of lump and fine ore.
To meet the rising domestic demands of iron ore, NMDC has plans to step up its production to 52 million tonnes of iron ore by 2020, said Mr Kumar. This would be achieved by opening new mines in the Bailadila sector reserve of 104 million tonnes in Chhattisgarh and in the Kumaraswamy deposits of 137 million tonnes in Karnataka.
Mr Kumar said that the Government has prescribed quantitative ceilings of 3 million tonnes and 3.80 million tonnes for the export of Bailadila lumps and fines respectively and NMDC has kept itself well within the ceilings and the export has been limited to 2.01 million tonnes of Bailadila lumps and 2.52 million tonnes of fines.
Orissa government unable to issue land acquisition order for POSCO
The anti POSCO movement activists belonging to Nava Nirman Samity, Posco Pratirodh Manch and Mahavir Yuva Sangha locked the revenue inspectors office in Nuagaon on 22 February and the lockout has reached its 50th day now. Attempts by the government have failed so far to cut much ice in convincing the anti POSCO activists to lift the lockout.
With the revenue divisional office not functioning, the government cannot technically announce 4 (1) notification for land acquisition for the project. Under the provisions of Land Acquisition Act, the notification has to be moved right from RI office.
New Products developed & commercialized by BSP in 2005-06
SAILs Bhilai Steel Plant during 2005-06 has developed various new products and commercialized through process improvement and R&D to cater to the changing needs of the customers.
As per a BSP release the new product developed include
1. 260 meter long welded rail panels for Indian Railways.
2. Angle 200x200x24 mm at RSM.
3. 12 mm TMT wire rods with Nb addition for construction sector.
4. 76 mm thick ASTM 516 Gr 70 boiler quality plates
5. DMR249 B grade plates (low C high Ni 2 %) for Indian Navy for submarine.
6. SAILMA 300 HT plates up to 80 mm thickness in normalized condition for DLW.
7. Concast slabs in 1280 mm width for SSP in IS1079 Gr D.
8. HT plates for high altitude railway bridges in IS 8500 Fe 540B.
9. GOST 19282 Gr10 KhSND corrosion resistant plates for Dehydrator for slag granulation tank at BF.
10. 63 mm thick boiler quality plates in IS 2002 Gr II.
The following products developed earlier were commercialized:
1. 498 tonnes of Cu-Mo rails were supplied to Railways for critical application in the coastal area.
2. 90 mm thick HT plates with isothermal treatment.
3. DMR-249A plates for Indian Navy.
4. SAIL-HITEN 690 AR grade plates for ATM safe application.
5. 911 tonnes of high conductivity rails supplied to Metro Rail Kolkata.
TATA Steel to expand FeCr capacity and build captive power plant
It is reported that TATA Steel will invest Rs 350 crore to double its ferro chrome capacity and set up a captive power plant in Bamnipal facility in Sukinda valley of Orissa. TATA Steel is already the largest player in the domestic ferro chrome industry with a capacity of 120,000 tonnes.
Mr Priyadarshan Roy in charge of ferro alloys and minerals division is reported to have said that the company will increase production by another 50,000 tonnes by investing about Rs 100 crore. It now produces 50,000 tonnes on its own and the rest is outsourced from various units. The company has started placing key orders for the work and it is expected to be completed by 2007.
Tata Steel is also setting up a coal based captive thermal power plant of 60MW at investment of Rs 250 crore as power is the principal raw material for ferro chrome, contributing around 45% of the cost. Power tariff is only going up in India. The captive unit will reduce that burden Mr Roy said.
Iron ore transhipper MV Goan Pride inaugurated
State of art transhipper MV Goan Pride with a storage capacity of 123,000 tonne in her cargo holds and a loading capacity of about 75,000 tonne per day, a JV of VS Dempo, VM Salgaocar and Bros Pvt Ltd, was inaugurated yesterday by Goas Chief Minister Mr Pratapsingh Rane among dignitaries from all over the world. The inaugural function was attended by top official from major steel manufacturers of the world including Nippon Steel Corporation, POSCO, Jinan Iron & Steel Group Corporation and Qingdao Iron & Steel Group Company of China.
MV Goan Pride is a cape size vessel of 123,000 DWT and has a self unloading equipment specially designed by SeaBulk Systems Inc, Canada and installed at the COSCO Shipyard at Nantong, China comprising of hoppered holds, basket gates, tunnel conveyor, C-Loop conveyor and a travelling ship loader which will enable the vessel to discharge the cargo stored in her holds at a peak rate of 4500 tonne per hour. In addition, the vessel is fitted with 4 high capacity grab cranes which can unload barges bringing the ore from the mines at the rate of about 2000 tonne per hour, either in own holds or directly into an ocean going export vessel. The entire equipment is controlled from the cargo control room fitted with modern PLC based computer control system. The vessel is also equipped with advanced safety systems to ensure safe operations in mid sea.
This Transhipper will have the capacity of loading Panamax Vessels in one day and larger size cape vessels up to 300,000 DWT in three to four days, bringing Goa at par with the loading facilities of the leading iron ore exporting countries like Australia and Brazil. The addition of MV GOAN PRIDE to the export facilities already existing at Mormugao Port Trust and at Panaji Port is expected to increase the exports through the ports of Goa to an all time high with a competitive edge over other exporters from around the world.
Leasing of SAILs Raoghat mines to Neco & Monet opposed
It is reported that opposition parties in Chhattisgarh have opposed state government's recent decision to lease iron ore mines of Raoghat to private companies, which were earlier reserved for the Steel Authority of India Limited.
Chhattisgarh Pradesh Congress Committee President Charan Das Mahant while speaking at a public meeting here claimed that Raman Singh government had compromised with the interests of the state in taking a decision in favor of private companies.
"The BJP government is playing in the hands of capitalists, because of which the Raoghat iron ore mines, which had been kept reserved for the Bhilai Steel Plant are being given to private entrepreneurs" CPI-M state secretariat member Mr Dharmaraj Mahapatra said in a statement. CPI M also demanded 'immediate cancellation of the decision of the state government to allot the Raoghat iron ore mines to companies Neco Jaiswal and Monnet Steels, as those mines were kept reserved for BSP in 1961".
Goa to enforce measures for controlling iron ore pollution
The Goa government has decided to take strict action to check dust pollution caused by mining industry in the state. "We will set time frame for the iron ore mining industry for tackling the pollution problem" state Chief Secretary Mr JP Singh said adding that if the industries failed to act, strict action would be taken against them.
Mr Singh said trucks were transporting iron ore without properly covering it is spilling it on the road, causing pollution. "We will make it mandatory for the trucks to cover the ores with metal top" said Mr Singh.
Goa government's stand is likely to affect the iron ore industry in the state, which has been facing criticism on pollution aspect.
Anti POSCO activists maintain steam and continue protests
Orissas Panchayati Raj minister Mr Damodar Rout is reported to have faced a protest as anti POSCO activists demonstrated this afternoon in Dhinkia village, one of the proposed sites for POSCOs project. Stray incidents of violence are reported in which two persons were injured following stone pelting.
Mr Rout is also the local MLA and the state government has been trying to build a political movement with Mr Rout at the helm of affairs to bring home the positive aspects and benefits of PSOCOs investment but there is no sign of the anti POSCO movement losing steam.
SAILs BSP increases production of value added products
A company release has informed that SAILs Bhilai Steel Plant has achieved highest ever production of special steels & value added products at 1.44 million tonnes during 2005-06, surpassing the previous best of 1.36 million tonnes in 2004-05 and registering a growth of 6.2 % over previous year.
Highest ever proportion of special Steels & value added products in total saleable steel production at 35% was achieved as against 34.5 % during 2004-05.
Jharkhand recalls iron ore lease applications in West Singhbhum
Jharkhand government has recalled nine applications, which it had processed two years ago for captive iron ore mining lease in Ghatkuri area in West Singhbhum.
The move was prompted by the discovery that the concerned area had been reserved exclusively for PSUs during the days of undivided Bihar. A further scrutiny revealed that a portion of the area fell in the neighboring state of Orissa.
POSCOs operating profit drops by 55.5% in Q1
POSCO announced that its operating profit dropped sharply in the first quarter due to weaker steel prices and lower sales. This was one of the worst quarters in recent years POSCO's CFO Mr Lee Dong-Hee said at a conference with investors. For the first time in last nine quarters, Q1 operating profit of 789.9 billion, fell below one trillion won.
The operating profit margin fell sharply to 16.9% in the first quarter from 27.2% last year. Sales declined by 17.5% YOY to 4.66 trillion won. Net profit slipped 47.9% YOY to 681.4 billion won.
In the fourth quarter of 2005, POSCO had posted a net profit of 381.5 billion won and an operating profit of 1.1 trillion on sales of 5.2 trillion won.
In the second quarter, we will make sure that operating profits exceed one trillion won again Mr Lee said. Prices will continue to stay stable in the first half on steady demand and inventory corrections Mr Lee said.
NLMK Chairman reported to be interested in a stake in Arcelor
It is reported that Mr Vladimir Lisin chairman of NLMK is interested in buying a stake in Arcelor and met Luxembourg Economy Minister Mr Jeannot Krecke to discuss it. Mr Krecke told Luxembourg daily Tageblatt that the Russian may want to buy into Arcelor.
Mr Krecke, who is leading a Luxembourg business delegation in Russia, confirmed to Reuters that he had met with Mr Lisin without giving details.
According to a previous Russian media report, Mr Lisin is considering buying a 15% stake in Arcelor, which could possibly hinder Mittal Steel's bid.
An Arcelor spokesman declined to comment.
Chinas steel export up by 24.7% in Q1
China's steel products exports rose 2.81 million tons in March up by 27.1%, hitting a record high as per Mysteel.com citing government custom data. Total exports of steel products from January to March rose by 24.7% YOY to 6.47 million tons.
Imports of steel products in March fell 30% on year to 1.79 million tons, while imports from January to March fell 22.8% YOY to 4.61 million tons.
China's General Administration of Customs is scheduled to release March trade data on April 27.
Kobe Steel reported to join SDI & Cliff for a steel mill JV in US
Japan's 3rd largest steelmaker Kobe Steel Ltd plans to set up a JV in the US to build a new type of plant capable of making high-grade steel products at low cost, the Nihon Keizai Shimbunm reported without citing sources. The business daily said the plant, which is slated to cut materials costs to about one third those for a blast furnace, will start operating as early as 2008.
The report said that Kobe Steel and its two US partners Steel Dynamics Inc and Cleveland-Cliffs Inc will construct the factory in Minnesota, with total investment estimated at 15 billion yen. The facility is expected to produce about 500,000 tons a year initially.
Kobe Steel's new plant is designed to produce high end steel even from low quality iron ore and low priced coal, which is usually used to generate power, the Nihon Keizai said.
No one can match our bid says Mittal Steel
Mittal Steel said on Tuesday that no partial transaction would match the offer it has tabled for Arcelor. We believe there is no partial transaction that matches the value of the combination were offering, a spokeswoman for Mittal Steel said.
Shareholders in Arcelor should be concerned that this could be another attempt to deprive them of the right to decide on the merits of Mittal Steels offer, she said.
Mittal Steel was responding to a newspaper report on Tuesday which said the chairman of Russian steel maker NLMK was interested in buying a stake in Arcelor and had met Luxembourgs economy ministry to discuss it.
Western Canadian Coal and NEMI plan merger
Western Canadian Coal Corp has struck a deal to acquire NEMI Northern Energy & Mining Inc in an all share deal worth about C$84.3 million that will give it control over its Belcourt and Saxon coal properties in northeastern British Columbia for which the companies were working together on a feasibility study that could potentially have 300 million tonnes of coal reserves. Under a letter of agreement, Western is offering one of its share for every 1.8 shares of NEMI, which will become a wholly owned subsidiary of Western.
The combined company would have more than 85 million tonnes of proven and probable coal reserves and 98 million tonnes of measured and indicated resources in deposits accessible to their coal processing facilities. ''Combining the anticipated production of both companies will allow us to reach the strategic goal of producing five million tonnes per year of hard coking coal by 2007,'' NEMI president and chairman Mr Pat Devlin said in a release. ''At that level, the combined company will achieve a critical mass that will enable it to be a significant supplier to global coal customers.''
''They have a very strong resource base that is very close to our existing operations and so we complement one another with respect to not only coal quality but also coal location,'' Western president and CEO Mr Gary Livingstone said in an interview. ''It just makes sense to have a larger player in the northeast rather than a bunch of smaller players because of the synergy that brings. It allows us to be more competitive on our costs, it allows us to have a stronger presence in the market'' he added.
Angang & ThyssenKrupp to build 2nd galvanizing line for auto segment
China's 4th largest steelmaker Angang New Steel and German giant ThyssenKrupp agreed to build a second galvanizing plant in China to tap rising demand for auto segment. The facility will produce 400,000 tonnes of steel a year and supply automotive and home appliance producers, Angang New Steel said.
The plant will be located in the northeastern province of Liaoning, where Angang New Steel is based. The two companies will each invest $34 million in cash.
ThyssenKrupp and Angang New Steel's first JV, which cost them a combined $60 million, has been producing 400,000 tonnes of galvanized steel a year since December 2003.
Maanshans 2005 net profit down by 19%
Chinese steel producer Maanshan Iron & Steel Co announced that its 2005 net profit of CNY2.91 billion fell by 19% from the previous years CNY3.59. The company didn't give an explanation for the result in a brief statement filed to the Hong Kong stock exchange. It is scheduled to hold a press conference Wednesday.
Its revenue rose to CNY32.08 billion from CNY26.77 billion in 2004.
Maanshan Iron produces a wide range of products, including sections, wire rod, medium and thick plates, and train wheels and tires.
Severstal-metiz buys UKs Carrington Wire
Severstal-metiz, Russia's leading wire manufacturer announced that it has acquired a 100% stake in Britain's Carrington Wire, Europe's leading wire producer. The company did not specify the price of the deal.
Carrington accounts for 30% of the UK's wire and wire products market, with customers in more than 50 countries.
Severstal-metiz is a member of Severstal Group, a major Russian steel producer with assets in a wide range of industrial sectors, including mining, machinery and transportation.
Global steel prices may fall in next 3 to 4 years CRU Consultant
Mr Philip Tomlinson Director and Managing Consultant of the CRU Strategies told Business Line on the sidelines of the Global Steel 2006 conference organized by Steel RX in Goa that with capacity being created across the world, global steel prices are expected to take a dip in the next 3 to 4 years. "After some near term strength, we do expect to see steel prices follow a downward trend in the next 3 to 4 years. This will follow the easing of capacity bottlenecks across the globe," Mr Tomlinson said.
According to him, iron ore prices are expected to rule firm till next year, when mining bottlenecks are expected to ease. The profit margins of steel makers would continue to remain under pressure.
US ITC to conduct sunset review for SS butt weld pipe fittings
The US International Trade Commission voted to conduct full 5 year sunset reviews concerning the antidumping duty orders on imports of stainless steel butt weld pipe fittings from Italy, Malaysia, and the Philippines to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
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.
Coal mine shaft collapse kills 7in Shanxi
A coal mine shaft collapse accident has left seven miners dead and four others injured in Xiangning County of North China's Shanxi Province, said the provincial safety production watchdog.
The Shanxi Provincial Coal Mine Safety Supervision Bureau confirmed that the accident occurred in Tanhan Coal Mine, a township colliery on Monday morning. Investigation into the cause of the accident is under way.
Qasco adding new rebar mill at Mesaieed plant
Qatar Steel Company, a wholly owned subsidiary of Industries Qatar, will initially invest QR20mn for setting up a Rebar fabrication unit at its existing plant at the Mesaieed Industrial City. The new unit is expected to start commercial production by the last quarter of 2006.
Qasco director and GM Sheikh Nasser Hamad al-Thani recently concluded and signed contracts for the supply of machinery with leading manufacturers of Europe. The new project is being internally handled by Qascos engineering department.
Fortescue completes iron ore mine study in Pilbara
Fortescue Metals Group Ltd announced that it has completed a feasibility study for the first stage of Cloud Break and Christmas Creek deposits at the company's project in Western Australia's remote Pilbara region. Snowden Mining Industry Consultants carried out the study which confirms an operation of 45 million tonnes a year for more than 20 years with a low operating cost.
The study gives the total cash cost of production as $16.11 per tonne after allowing for leasing costs of mining and processing equipment and contractors' profit margins. Snowden study had found Fortescue would be able to reach a production rate of 45 million tonnes per annum within 15 months of launching production and associated infrastructure would be ready to handle that much ore by March 2008.
Fortescue chairman Mr Gordon Toll said this would make the company one of the lowest cost iron ore suppliers in the world and meant it would generate a gross margin of about $30 per tonne before tax, interest, depreciation and amortization, based on 2005-06 benchmark prices. "This is a great moment in the development of this project and for the Fortescue Metals Group" he said. Mr Toll said at current prices that would give Fortescue annual earnings of about $1.3 billion.
Danielis twin bar mills started up at Tianjin
Two new Danieli super flexible bar mills, with a total rated output capacity of 1.5 million tonnes per year started operation at Tianjin Tiangang Group Ltd in February and March 2006. The product range of the new twin plants is 12mm to 60mm dia SBQ bars and rebars in alloy and carbon steels.
The two 18 stand lines feature all latest Danieli Morgdshammar technology available in long products mills to produce 160 tonnes per hour. This include Low Temperature Rolling process applied to the finishing mills when producing SBQ bars or multi strand slit rolling for smaller-size rebars. Danieli Automation has supplied two HiGAUGE bar measuring units and an advanced automation system for LTR process control.
A Danieli Spooler line will also be started up as completion of one of the two bar mills later this year, enabling production of twist free wound bars in ultra compact, high weight coils. This will make Tianjin Tiangang first in China to operate the revolutionary Danieli Spooler process for bar in coil production.
Paulson & Co decreases its holdings in Algoma after payout
The New York-based hedge fund Paulson & Co disclosed in regulatory filings this week that, as of March 31, it held 1,926,600 or about 5% of Algoma Steel Incs shares. That's down from about 19% in its last disclosure at the beginning of November.
Paulson began its battle with Algoma in the fall, pushing the steelmaker to use its large cash balance to make a payout of more than $400 million to its shareholders. When Algoma rejected the proposal, Paulson launched a proxy battle to replace the steel maker's board.
Finally Paulson & Co pushed Algoma to make $ 200 million cash payment to its shareholders and put two directors acceptable to Paulson on its board and agreed to continue its strategic process which includes searching for potential buyers for the steelmaker. The settlement angered Algoma's union, the United Steelworkers, which wanted the money to go to the company's pension plans.
Fidelity also announced on Tuesday that it has decreased its holdings in the steelmaker by 1,494,400 shares since December 12. Fidelity now holds 4,165,700 or 10.79% of Algoma shares.
Algoma shares have been rising for months and when Algoma rejected Paulson's initial proposal in October, the shares were trading at $21.35 on the Toronto Stock Exchange. Prior to the announcement of the agreement with Paulson on March 7, the shares were halted at $30.92.
O'Neal Steel buys Timberline Steel
Green Manning & Bunch Ltd a leading middle market investment banks announced the sale of Denver based Timberline Steel Inc to Birmingham based O'Neal Steel Inc. O'Neal Steel's acquisition of Timberline Steel expands the company's core product and processing capabilities and extends its geographical coverage.
"O'Neal made a strategic decision to increase its geographic footprint with high-quality acquisitions and Timberline's locations and value-added services made it an ideal candidate" said Mr Warren Henson co-president of GMB.
Mr Dan McCallin CEO of Timberline Steel said "They had a clear and intense focus from initial due diligence through final discussions and negotiations to find the best buyer for Timberline."
Founded in 1958, Timberline Steel is a full line steel service center. The company's four facilities include the largest and most comprehensive processing facilities in the Rocky Mountain region.
O'Neal Steel Inc is a full line metals service center with a vast array of products, over 60 locations, and multi stage processing capabilities. With over 80 years of history, O'Neal Steel is the USs largest family owned metals service center.
Mittal Steel's bid seen to pass unconditionally by EU commission
Antitrust experts and industry analysts said that the bid by Mittal Steel for Arcelor is likely to receive unconditional approval from the European Commission due to the largely complementary nature of the combined group. More over, the political dimension to the deal is further reason for the EU regulator to flex its muscles and clamp down on what the executive views as a mounting wave of protectionism by EU member states.
The European Commission began its initial antitrust investigation into the deal on Monday and has set a phase one decision deadline of May 19. If Mittal Steel wishes to submit undertakings to the commission to ease any potential competition concerns, it has to do so by May 12, and if the commission deemed such undertakings acceptable, the investigation timetable would then be extended by 10 working days. But experts scotched the idea of commitments, either structural or behavioral, being necessary.
Taiwans E United Group to invest in EAF
The E United Group, Taiwans second largest integrated manufacturer of iron and steel, second to China Steel Corp, recently decided to invest NT$2 billion to set up a plant equipped with an electric arc furnace in southern Taiwan with annual output reaching 600,000 metric tons of steel billets.
The steel billets rolled out by the electric arc furnace will be supplied to Yieh Hsing Enterprise Co, a member of the E United Group, for the production of wire rods. The Group said it would also sell steel billets to the domestic round bar market, which would impact existing domestic EAF operators including Tung Ho Steel Enterprise Corp, Feng Hsin Iron & Steel Co, and Wei Chih Steel Industrial Co.
E United Group chairman Mr IS Lin said that his group is procuring production equipment to facilitate the rollout of the proposed electric arc furnace and construction is slated to begin sometime in the middle of this year.
Anglo Coal officially opens Isibonelo Colliery
Coal-miner Anglo Coals Isibonelo Colliery, a R769-million opencast operation, was officially opened on Tuesday. This operation was established following contractual agreements between Anglo Coal and Sasol Mining, in October 2003, to jointly develop the Kriel South reserve area. Construction work began in November 2003 and the official sale and transfer of the business at Sasols Syferfontein opencast colliery to Anglo Coal was concluded on April 1, 2005. The first coal was supplied to Sasols Synthetic Fuels on July 1. The colliery is located some 120 km due east of Johannesburg, 60 km south of Witbank and 13 km east of Secunda.
Anglo Coal committed to establishing the opencast operation, which would supply more than five million tons of thermal coal a year to the SSF Plant in Secunda over a 20 year period, with a total estimated production of 200-million tons. Sasols investment amounts to R320-million. To date, the colliery has supplied over two million sales tons to Sasol and has set a target of 4.5 million tons for the end of the year. The mine will reach full production of five million tons by 2007.
Today marks the culmination of years of effort and teamwork, by many people, across a large number of organizations, activities and disciplines, said Isibonelo GM Mr Clive Ritchie.
Sasol CEO Mr Pat Davies said that Sasol was pleased to partner with Anglo Coal in this venture, which would secure guaranteed additional coal supply to the companys Secunda Synfuels operation. We look forward to growing future cooperation with Anglo Coal and are impressed by the speed at which, and the professionalism by which, the supply agreement and establishment of Isibonelo Colliery came to being, he said.
USPF sets price for its 0.5% shares of Mittal Steel Kriviy Rih
The Ukrainian State Property Fund has had 0.5% of the shares in the Mittal Steel Kriviy Rih steel works valued at 19.2977 million hryvni.
This is equal to the par value of the shares which is 1 hryvna the Fund said. The Fund said it hired independent valuers to determine the price. It did not say when the shares might be sold.
Vostochny Port to start 3rd phase of coal complex
Far Eastern Russian Vostochny Port OJSC started the preparatory works on the construction of the coal complex's third phase, which is likely to be completed by November 2007.
The third phase includes construction of 4 warehouses of the capacity of 200,000 tons equipped with two stackers, three reclaimers and ten kilometers of conveyor lines to enable the port to increase the capacity of the coal complex significantly.
Mittal Steels domestic prices not excessive- CRA Consultant
Mr Mike Walker VP of the US based consultancy company CRA International while giving evidence at the competition tribunal hearing in Johannesburg over claims that Mittal was setting domestic prices at the level of import parity told that the Mittal Steels prices for the domestic market were not excessive. Mr Walker said it appeared that Mittal Steel's flat product prices in South Africa were not significantly different to that in other countries.
He had provided two benchmarks that were used consistently in case law on excessive pricing: profitability and price comparisons. "I looked first at Mittal Steel's profitability. If its prices were excessive, one would expect it to make high profits. The evidence is that Mittal is not very profitable," he said. "Indeed, it has over the cycle made economic losses from its flat steel operations. This implies that Mittal Steel's prices have failed to cover its costs. I have referred to evidence that shows that Mittal Steel is a relatively efficient steel producer, so its lack of profitability cannot be attributed to inefficiency" Mr Walker said.
The tribunal is hearing a complaint from Harmony Gold and DRD Gold that Mittal Steels domestic prices to the mining sector were excessive.
Kuzbassrazrezugol GD elected as board chairman of Powerfuel
The director general of Russia's second largest coal producer, Kuzbassrazrezugol has been elected board chairman of its British subsidiary Powerfuel, the company announced. Powerfuel's new board of directors will include three Kuzzbassrazrezugol representatives. British entrepreneur Richard Budge was elected director general.
Siberia based Kuzbassrazrezugol bought 51% in Powerfuel in March for $1.6 billion. Powerfuel owns the Hatfield Colliery in northern England, which was closed down in 1993. The company plans to restart the mine with its new resources, and has obtained a license to build a clean-coal power station with output of 920 MW.
The Kuznetsk Basin or Kuzbass in southwest Siberia's Kemerovo Region is one of the worlds largest coal basins, and produced 160 million metric tons of coal in 2005with total reserves estimated at 11 billion metric tons. Kuzbassrazrezugol operates 13 open cast mines that produce 31 million tons annually.
Roanoke Electric Steel merger with SDI approved
Roanoke Electric Steel stockholders voted the company out of existence today as they approved a merger with Steel Dynamics. While some of Roanoke Electric Steel's 1,600 workers had some concerns about their future under new corporate ownership, most are encouraged by SDI's promise to invest $50 million over time in the Roanoke based operation. The merger goes into effect later this month.
Steel Dynamics President Mr Keith Busse pledges the company will maintain Roanoke Electric Steel's profile of charitable contributions to arts and cultural events in the Valley.
Nigeria to become steel center in West Africa
Ajaokuta Steel Company has announced exports of 8,850 metric tonnes of ribbed bars to four West African countries. GM of Projects and Engineering Services Dr. Stanley Imagie said We exported 3,800 metric tonnes of ribbed steel to Mauritania, 3,400 metric tonnes to Cote dvoire, 1,050 metric tones to Benin Republic and 600 metric tonnes to Mali.
He said that, Global through its efforts in Ajaokuta and Delta Steel was poised to make Nigeria the centre point of steel in the West African sub region.
Kumba announces new appointments
South African miner Kumba Resources said that it has appointed Mr Vincent Uren as chief financial officer of Kumba Iron Ore. Mr Uren is senior vice president of corporate finance at Anglo American South Africa.
Kumba also named Mr Francois Louw as commercial general manager of the new firm. Mr Louw is project director for Kumba's iron ore business in the Northern Cape Province.
Miner Anglo American Plc and Kumba, which it controls, said in October they would split Kumba in two and in the process form South Africa's biggest black owned company. The world's fifth largest iron ore producer, will be divided into Kumba Iron Ore and Exxaro, a coal and heavy minerals company each to be separately listed on the Johannesburg stock exchange.
UGMKs Serov Plant gets international quality certificate
Ural Mining and Metal Groups Serov Metallurgical Plant announced that its quality management system has been accredited according to the international ISO/TS 16949:2002 standard.
Auditors from the Geman Association for Technical Surveillance surveyed the activities of the plants technological systems, laboratories and other departments during March.
