April, 22 2006
Jharkhand recommends iron out leases without checking
It is reported that Central government has rejected a number of iron ore mining lease applications that the Jharkhand government had recommended for clearance. While some applications were rejected as the mining areas fall under places kept strictly reserved for mining by PSUs, some others were rejected as the geographical area shown by the state for granting the lease is said to fall under the adjoining state of Orissa. All the 10 applications were returned to the Jharkhand government.
A state mining department official said that they will have to verify these cases where leases have already been existing and only then we would come to know how much of such land is actually free or we may even de reserve such land. According to him, since the existing lessees were not working on such land and also because the lease papers had not yet come from Patna the state had unwittingly distributed the areas amongst fresh applicants and forwarded their applications to the Centre.
The investors whose iron ore lease applications have been returned by the Centre are complaining about the lackadaisical attitude of the state mining department.
Adhunik Metaliks suspends operations at DRI division
After being slapped a shutdown notice, Adhunik Metaliks Ltd has announced that its sponge iron unit has temporarily suspended its operations for compliance of certain pollution norms, which since has been complied with and awaits the clearance from Pollution Control Board.
However other divisions of the plant Pig Iron Plant, Steel melting shop, Concast, Ladle refining furnace, Coal washery, Nitrogen plant, Oxygen plant are working normally. Companys steel plant operates through the DRI-MBF-EAF-LF continuous casting route and also includes a Coal Washery for washing F grade coal for DRI Plant.
Indian iron ore miners for long term deals with China
Indian miners are set to seal more long-term iron ore supply contracts with Chinese steel mills, the world's main buyers, a top industry official said Friday.
Mr RK Sharma secretary general of the Federation of Indian Mineral Industries Sharma just back from a visit to China to attend an iron ore conference said that a broad understanding on long term supplies had been reached between Indian miners and Chinese industry.
"The price negotiation should be on half-yearly or yearly basis. The long-term agreements would only be for quantity," he added.
Kandla Port Trust to invite tenders for shipbuilding yard
It is reported that Kandla Port Trust is planning to invite global tenders to develop a mega international ship repair & shipbuilding complex at Kandla Port and has already prepared a techno-economic feasibility report. The estimated cost of the project has been worked out at Rs 400 crore.
The proposed shipyard include facility to repair & build VLCCs of the size of up to 300,000 DWT and all other types of ships within this range. The shipyard will have a large back up area as well as a repair jetty of sufficient length to cater to the need of afloat repairs and sufficient draught.
Paradip port aims for 13.3% growth in 2006-07 on crude
The Paradip Port Trust is targeting 13.3% growth in cargo handling to reach 37.5 million tonnes during 2006-07 as against 33.1 million tonnes in 2005-06. PPT has posted 10% growth in 2005-06 by handling 30.1 million tonnes.
The bulk of the projected increase of 4.4 million tonnes of traffic in 2006-07 is estimated to be in the form of crude and petroleum products. In the current fiscal, PPT proposes to handle an estimated 3.5 million tonnes of crude and petroleum products, as compared to 0.91 million tonnes in 2005-06. It will be possible because of the commissioning of the Paradip-Haldia crude pipeline during the course of the year.
The traffic projections for 2006-07 suggest that the throughput of other items will record modest increases compared to last year. Iron ore traffic is estimated to be 10.5 million tonnes as against 10.27 million tonnes in 2005-06, thermal coal at 13 million tonnes as against 12.53 million tonnes in 2005-06 and coking coal 4 million tonnes as against 3.76 million tonnes.
Mr K Raghuramaiah Chairman of PPT is reported to have said that the port's iron ore handling capacity had virtually reached saturation point, as a result of which there is hardly any scope for achieving a major breakthrough in throughput in the current year. In case of thermal coal, although the port has the capacity to handle 20 million tonnes annually, coastal movement is likely to be limited and imports may rise.
Rio Tinto wins back Shovelana license from Cazaly
The West Australian Government has terminated an application by Cazaly Resources to explore Shovelana deposit in the Pilbara and returned the land to Rio Tinto. The two companies have been locked in a battle for the Shovelana deposit, which Cazaly laid claim to in August after Rio forgot to renew its exploration licenses before they had expired.
The assistant State Development Minister Mr John Bowler said that the has carefully examined submissions from both parties over the dispute and has decided the public interest is best served by terminating Cazaly's application to explore the Shovelana prospect.
Rio Tinto Iron Ore CEO Mr Sam Walsh said the company has always intended to renew the Shovelanna tenement and has conducted extensive exploration and evaluation programs there. Investors in the resource industry need confidence and security that long term decisions can be made in a stable and certain policy and administrative environment. We appreciate the recognition of this and look forward to working with the Western Australian Government to ensure the continued development of the State's resources he added.
Cazaly MD Mr Nathan McMahon said he was gutted by the decision, which had wiped out a great deal of value for the company's 2100 shareholders. Mr McMahon said he was very angry, because Cazaly had acted within the law and had achieved more at Shovelana since pegging the lease last August than Rio and Hancock Prospecting had done in the previous two decades that they had held the lease. "This affects everyone in the mining industry in this state. The Government has bowed to big business by allowing Rio to knock us out."
Cazaly had brought in a joint venture partner, Echelon Resources, to help drill the tenement and had gained financial backing from South Africa's Investec. It had also signed an off take agreement with BHP Billiton, which has operations adjacent to Shovelana, to buy all of the iron ore Cazaly mined and to ship it out on its Pilbara railway network.
Mr Justin Walawski CEO of the Association of Mining and Exploration Companies said the Government's decision was "unbelievable. It sends a message that junior explorers are not wanted in this state," he said.
Mexican striking workers continue blockade Sicartsa plant
Striking Mexican workers kept up their blockade of a Sicartsa steel mill on Friday, a day after clashes with police that killed three workers in firing. Striking miners have also shut down copper producer Grupo Mexicos La Caridad mine badly hurting the companys output.
Despite the violence, police failed to maintain control of the plant and workers were again blocking entry to Sicartsa on Friday. "Were waiting for the installations to be returned to us because theyre being illegally occupied" said Mr Ignacio Trevino CFO of steel producer Villacero, which owns the complex. He said the strike was preventing steel production worth about $3 million a day. We ask the government to take action so our plant doesn't continue to be held hostage'' Mr Trevina said. This is an internal problem at the union. It's out of the company's hands.''
Presidential spokesman Mr Ruben Aguilar said violence at the plant, which had been shut for three weeks by a strike that was subsequently ruled to be illegal was regrettable. "It could have been avoided if the union had obeyed the law. The rule of law implies respect for the law," Mr Aguilar told a news conference.
But Mexicos human rights commission and a US labor organization condemned the governments handling of the tragedy. "Under other circumstances heads would fall at the highest level" commission head Mr Jose Luis Soberanes said. "It astonishes me that in the federal government its as if nothing happened."
Workers at the steel plant operated by Villacero SA., Mexico's biggest producer of steel bars and wire rod, went on strike April 2 to protest Mr Gomez' removal as leader of the union, known widely as "Los Mineros" by its 250,000 members. Mr Gomez's troubles began following a horrific mining disaster in which 65 miners were killed at Pasta de Concha, owned by Grupo Mexico. He was removed from office after he criticized the company and the government and called for an investigation.
Villacero SA is reported to be using stocks and buying steel from other producers to meet contracts.
Mittal Steel has no plans to raise its offer for Arcelor
Mittal Steel on Friday clarified that it had not raised its offer to Arcelor. It said it had no plan to do so.
However, it noted that the implicit value of the offer had increased since January 27 due to the increase in the Mittal Steel share price.
Xinjiang coalfields may become Chinas largest deposit
The Xinjiang Bureau of Geology and Minerals Exploration has found a coalfield with proven reserves of 68.5 billion tons in the east of the Jungar Basin. The total coal reserves of the area are estimated to finally reach 390 billion tons after a few years of further exploration, which would make it the largest coalfield in China. Currently the total proved coal reserve in the Xinjiang Autonomous Region stands at 97.8 billion tons.
The Ordos coalfield in Inner Mongolia is now the largest coalfield in China, with total proved reserves of 124.4 billion tons.
It is reported that a large number of companies including the Shandong Luneng Group, the Shenhua Group, the Xinjiang Tebian Electric Apparatus Group, the Shandong Yankuang Coal Group, the Huadian Group and the Dalian Shide Group have invested in the new coalfield.
USW outraged over violence at Mexican steel plant
United Steelworkers President Mr Leo W Gerard denounced as deplorable the deadly violence that occurred in Mexico on Thursday when hundreds of police stormed Sicartsa steelmaking complex in the western state of Michoacan to force out strikers who were protesting the government's illegal ouster of a union leader. "The Fox Administration's murderous actions have marked it as one of the most heinous in all Latin America" Mr Gerard said.
"This is a terrible situation when a supposedly civilized government attacks its own citizens for exercising labor union rights" said Mr Terry Bonds, director of USW District 12 in California.
USW is a partner in a strategic alliance with the Mexican union. The USW has a membership of 850,000 workers in a range of industries across North America. It is the largest industrial union in North America.
Arch Coal Q1 profit up 820%
Profit from Arch Coal Inc's operations more than tripled in the first quarter, which contributed to an 819.7% increase in its total first quarter profit. Profit rose to $60.7 million on revenue of $634.6 million as compared with profit of $6.6 million on revenue of $600.5 million in the first quarter of 2005.
Mr Richard Price of Westminster Securities in St Louis said "Pricing was a significant factor and they had no extraneous events in the quarter," such as mine accidents or shutdowns. Mr Ian Synnott, a coal industry analyst with Natexis Bleichroeder, said Arch's results were very encouraging. They were much stronger than I thought and prices were above what the market was expecting. He said Arch, like other companies that sell a majority of their coal to utilities on long term contract, was seeing the benefit of new contracts reflecting prices about 150 percent higher than last year.
Arch President and CEO Mr Steven Leer expect the company to maintain its first quarter momentum, according to a statement. "As we look ahead, we expect to benefit from the return to form of the West Elk mine, the continuing expiration of below market contracts and the start-up of the Coal Creek and Skyline mines, as well as strengthening volumes in the Powder River Basin in response to anticipated improvements in rail service," he said.
St Louis based Arch Coal Inc is one of the largest coal producers in US, providing the fuel for about 7% of the electricity generated in the United States.
Baosteel to post poor quarterly profit
Baosteel is set to post its worst quarterly profit in 14 quarters as high iron ore costs and low steel prices cut earnings in half. Baosteel's January-March net profit, due to be announced next Monday, is likely to drop to 1.4 billion yuan ($175 million) its lowest since the 2002 third quarter, from 3.1 billion yuan a year earlier. That would follow a 2.2% dip in fourth-quarter profit.
"Prices in the first quarter were rather low and only started to rise in the second quarter, so Baosteel's results in the first quarter will be quite weak" said analyst Liang Mingchao at TX Investment Consulting.
The earnings decline is set to parallel that of POSCO, the world's fifth-largest steelmaker, whose first-quarter profit fell 48% on the back of lower steel prices.
BlueScope defers Indonesian expansion plans
BlueScope Steel has deferred the $145 million expansion of its Indonesian steel coating facility at Cilegon following a review of Asian operations by Ms Kathryn Fagg. Ms Fagg is said to have lobbied the BlueScope board in the past month, arguing that the company should focus on optimizing output at other Asian facilities, including the Suzhou paint line facility in China.
"We will review the Indonesian project in six to 12 months," said spokeswoman Ms Sandi Harwood. "We're basically focusing our efforts on developing other projects in Asia which are more advanced."
BlueScope had announced in November that it would expand the Indonesian operation to meet growing demand from residential and commercial building clients. The original plan was to triple the annual coating output of the plant to more than 300,000 tonnes by the first half of 2008. The company had envisaged the output of the Cilegon painting line to more than double to 125,000 tonnes by the same year.
The Indonesian project was part of a $2 billion investment program aimed at tripling BlueScope's global steel coating and painting capacity over the next five years. Under a strategic plan formed last year, BlueScope had been aiming to boost steel coating output in Asia from 430,000 tonnes in 2005 to 1.46 million tonnes in 2009.
Nickel miner Allegiance signs sale deal with Jinchuan
Tasmania's only nickel mining company Allegiance Mining, which has established the Avebury underground mine just outside Zeehan announced that it has executed a forward sale deal with Jinchuan Nickel Group, China's largest nickel manufacture. Jinchuan will take all the nickel concentrates produced at the Avebury nickel mine over the next decade. The two companies will take part in a formal signing ceremony in China soon.
When production begins at Avebury at the end of the year, concentrates will be transported by road and rail to Burnie and then shipped to China.
Jinchuan has not set a deadline for the delivery of concentrate from Tasmania and it will provide financial and technological support including a $5 million loan so that it gets the metal it needs as soon as possible.
Allegiance chairman Mr Tony Howland Rose said "Tasmanians are great miners and we want them to come home. We look forward to being able to push some of our good fortune on to the West Coast. The region has had a hard time over the past two decades."
Allegiance has been working to establish its Avebury mine for more than five years.
Pan'gang to achieve 6 million tonnes by 2007
Mr Hong Jibi chairman of Pan'gang (Group) Company said that by focusing on the 3rd phase construction and modernizing projects to increase the production while amending the product mix, Pan'gang has the potential of reaching capacity of 6 million tons in 2007.
The projects leading to 6 million tons per year capacity :
Pangang would achieve 6 million tonnes as the construction of new No.3 blast furnace is completed, new No.1 and No.2 converters have launched operation, the construction of new 16,000 cube meters and 20,000 cube meters oxygen manufacturers is completed, 3 new slab and square billet continuous casting machines have been operational, the construction of new No.1 and No.2 coke furnaces is completed, the construction of rail and beam line and the improving of the existing line are accomplished and the inner railway system are accomplished.
The bottleneck that is limiting the capacity is the outer factors as supply of raw materials like pellet and iron ore, electricity, coal and so on and the outer railway transportation capability.
Severstals Olkon mine boosts iron ore concentrate output
Olenegorsky GOK, an iron ore mining division of the Severstal in the Murmansk region, increased production of iron ore concentrate 19.5% YOY in January to March to 1.07 million tonnes.
Olkon mined 3.27 million tonnes of ore up by 16.1%, strontium ferrite powder production grew by 18% YOY and stripping rose by 20% YOY to 3.64 million cubic meters.
Olkon mines five ferruginous quartzite deposits in the central part of the Kola Peninsula. The main ore minerals are magnetite and hematite. The company is converting four open pits to deep mines and plans to discontinue open cast mining altogether by 2024 in a bid to keep mines operating until 2050.
Mittal Steel to discuss Arcelor bid in shareholders meeting
Mittal Steel CEO Mr LN Mittal announced that it will discuss its hostile bid for Arcelor at a May 9 general shareholders meeting but that it will not be put to a vote.
"These items of the agenda will be voted upon in an extraordinary general meeting of shareholders, the date of which is expected to be announced following the opening of the tender period for the mixed cash and exchange offer for the outstanding share capital and equity securities of Arcelor" Mittal Steel said in a press release.
The shareholders circular on the Arcelor offer will not be made available at the May 9 meeting as announced earlier because the offer document has not been formally approved yet by the applicable regulators the company said.
Chinese Luneng plans 10 million tonnes iron ore mine in Chita region
China's Luneng Group plans to build a 10 million tonnes iron ore mining enterprise in Russia's Chita region Mr Vyacheslav Petukhov region's deputy governor told reporters in Beijing. "The relevant agencies have finished considering a feasibility study to obtain credit resources" Mr Petukhov said.
Luneng won an auction in May and obtained a license in June 2005 to develop the Berezovskoye iron ore field in the Chita region.
SSAB Q1 profits fall
Svenskt Staal AB said its first quarter profit after financial items fell to 1.558 billion skr from 1.792 billion a year earlier, hit primarily by weaker gross margins. Sales totaled 7.622 billion skr up from 7.060 billion a year earlier, while gross margins fell to 25.5% from 30.4%. Operating profits fell to 1.557 billion skr as compared with 1.804 billion. The weaker gross margins negatively impacted operating profits by a total 325 million skr, while the increase share of core niche products positively impacted profits with 115 million skr.
SSAB said deliveries of its core niche products, quenched steels and extra and ultra high strength sheet increased by 18% as compared with last year. Deliveries of extra and ultra high strength sheet increased by 25%, as compared to last year. The corresponding increase in deliveries of quenched steels was 10%.
Deliveries of the niche products, high strength sheet and quenched steels within the plate area accounted for 57% of the sheet and plate deliveries from the steel operations, up from 52%. Of these, the core niche products, extra and ultra high strength sheet and quenched steels, accounted for 37% up from 32%.
The company said demand for both sheet and plate is generally expected to increase in 2006. Growth in extra and ultra high-strength sheet is expected to remain strong during the year, while growth in quenched steels where increased capacity is being brought into use is expected to accelerate compared with 2005.
PSMC Privatization Sell off as per privatization policies
Mr Syed Muhammad Asghar Shah, Chairman of the National Assembly Standing Committee on Privatization & Investment, has expressed satisfaction with the privatization process of Pakistan Steel Mills. He termed the sell off of PSMC in accordance with the governments privatization policy, which was being implemented by successive governments for the transfer of management of public sector entities to the private sector through a competitive, fair and transparent process, to generate revenues for the government, bring in efficiency, enhance production and further expansion of the entities through fresh investments.
He said that the undue hue and cry over the privatization of PSMC is unjust and is an attempt to mislead the people. The opposition has no significant issue to discuss for the welfare of the public. They have developed a habit to make criticism for the sake of criticism, he said.
ChTPZs Pervouralsk pipe mill to reinvest profits
ChTPZ Group has reported that shareholders in the ChTPZ pipe and metals group's Pervouralsk New Pipe Plant voted at their annual meeting to waive dividends for 2005 and reinvest last year's profits, said. The shareholders approved the annual report, which said net profit audited to Russian standards increased 12.1 fold in 2005 to 1.98 billion rubles. Revenue grew 170% to 18.35 billion rubles. The group said profit soared because the pipe mill abandoned tolling.
The shareholders also elected a board of nine directors comprising of Mr Vitaly Volf head of Pervouralsk municipality, Mr Alexander Karpov, Ms Yanina Kotilevskaya, Mr Melik Mori, Mr Sergei Mori, Mr Vitaly Sadykov and Alexander Frolov, Mr Sergei Moiseyev of OOO Arkley Capital, and Mr Alexander Pribludov of Bryansk Regional Board of Lawyers. Mr Karpov was elected board chairman.
PNTZ makes a range of 25,000 pipes and pipe sections from 200 grades of carbon, alloyed and stainless steels to 34 Russian and 25 foreign standards. Pipes are exported to 25 countries.
ChTPZ Group includes Chelyabinsk Tube Rolling Plant, Pervouralsk New Pipe Plant, Chelyabinsk Zinc Plant, pipeline bend producer ZAO ChTPZ-Integrated Pipe Systems, metal traders MeTriS and Tirus and scrap recycler ZAO ChTPZ-Meta. The Luxembourg registered Arkley Capital SA manages the ChTPZ Group's assets.
Arcelor won't talk to Mittal Steel - Mr Wilbur Ross
Arcelor CEO Mr Guy Dolle won't talk to Mittal Steel regarding takeover bid for his company said Mr Wilbur Ross. Mr Ross, who is a member of Mittal Steel's board, said that they have attempted to contact Arcelor managers in the past few weeks. "We have invited the management of Arcelor repeatedly to enter into discussions" said Mr Ross adding that "They know we are happy to meet with them."
Mr Ross also said that Arcelor's decision to place Dofasco into a separate unit is really quite arrogant.
Ms Sandra Luneau, a Paris based spokeswoman for Arcelor, declined to comment on Mr Ross remarks.
Alchevskkoks appoints new acting GD as Mr Chub becomes Mayor
The supervisory board of Alchevskkoks, one of Ukraine's three largest coke producers, has appointed Mr Valery Krivonos as acting GD after accepting the resignation of Mr Vladimir Chub, who has been elected mayor of Alchevsk.
The company said the board decision was made on April 14 and Mr Chub was relieved of his duties effective April 17.
Alchevskkoks operates five coking batteries and is controlled by the Donbass Industrial Union.
Malaysian scrap dealers ordered to relocate
About 250 Malaysian scrap metal dealers who have yards in Selangor and Kuala Lumpur are unhappy over a recent directive ordering them to either relocate to industrial zones or wind up their businesses.
The Malaysian Indian Metal and Old Goods Traders Association called for an emergency meeting where they sought the assistance of Federal Territory MIC chief Datuk Mr VKK Teagarajan to look into their plight. In Klang, about 150 scrap metal dealers sought an urgent meeting with Education Ministry parliamentary secretary and Kapar MP Komala Krishnamoorthy to find a solution.
The increase in the incidence of metal thefts prompted the authorities to closely regulate the lucrative scrap metal business in the Klang Valley. According to the Malaysian Star, the Cabinet ordered a clampdown on illegal metal scrap operators following complaints of rampant stealing of metal bars and objects in the major towns and cities.
Miju Steel appoints new CEO
Miju Steel Co Ltd has announced the appointment of Mr Kim Choong Geun as CEO of the Company with effect April 21, 2006.
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