April, 08 2006
Coal mining in India to get infrastructure status soon
It is reported that Coal mining activities in the country is all set to get infrastructure status from the government, allowing them to get tax holiday and access to cheaper institutional finance at par with road, port, telecommunication and power sectors. The energy coordination committee, headed by Prime Minister Dr Manmohan Singh, has asked the finance ministry to study a proposal in this regard from the coal ministry and take appropriate action soon.
While the exact nature of benefit under infrastructure status is still to be worked out by the finance ministry, sources said that a 10-year tax holiday may be announced. The Income Tax Act also provides for shorter tax holiday period of five years under Section 80-IB. But this is unlikely for the coal mining industry. It is expected that benefits under Section 10(23)(g) may also be given to the coal sector providing incentives on institutional lending. On service tax exemption, the finance ministry is studying whether Section 65 benefits of the Finance Act could be extended to coal sector.
The coal ministry feels that such exemption would encourage outsourcing of mining activities, which in turn would help in securing efficiency gains and promoting competency outside the public sector. Already, the government has opened mining of coal blocks for captive use by cement, steel and power sector companies where even 100% FDI is permitted.
SAILs Alloy Steel Plant likely to post profit in 2005-06
It is reported that after a decade of losses SAILs Alloy Steel Plant is now set to record a marginal net profit in 2005-06. ASP's turnover in 2005-06 grew by 15% to Rs 650 crore.
Meanwhile, the modernization program of ASP, which is worth Rs 460 crore has already started to increase liquid steel production to 0.5 million tonnes from the existing level of 0.164 million tonnes. Production of stainless steel slabs will increase by 0.2 lakh tonnes. "A significant aspect of ASP's modernization is that it would bring great synergy between ASP and Salem Steel Plant as these would be sent to SSP for production of hot and cold rolled coils.
"We envisage a saleable steel production of 0.431 million tonnes by 2012 when the up gradation is over. We would lay more thrust on capacity utilization of the existing units and de bottlenecking of existing processes" Mr NP Jayaswal ED ASP said.
PSL to set up a 75,000 tonnes pipe unit in Rajasthan
PSL Ltd has informed BSE that the Company has initiated steps for setting up of a 75,000 tonne per annum capacity pipe mill in Jaipur.
The company said that this is being done keeping in view the bright prospects of business in Northern India including Rajasthan.
TATA Metaliks reportedly eying more acquisitions
TATA Metaliks Ltd is reported to be eyeing fresh acquisitions in south India. TML acquired a unit in Maharashtra earlier this year but is open to more buyouts if the acquisition makes synergy with TMLs existing operations and has been looking for capacities in the west and south for a long time as they are two key markets for foundry grade pig iron.
Mr Harsh K Jha MD of Tata Metaliks said Even though we are busy in stabilizing the new acquisition, we can buy more. While south could be the natural choice after having established its presence in the west, the company is not averse to another capacity in west too.
Tata Metaliks had its unit at Kharagpur before taking over the Redi plant from the Stressed Assets Stabilization Fund. The company will have total production capacity of close to 650,000 tonnes once the Redi unit goes full steam.
Chennai port handled 8% higher traffic in 2005-06
Chennai port handled 47.25 million tonne of cargo during 2005-06, 7.88% more than previous years 43.80 million tonne. The operating income during the year was up 6.57% at Rs 430.16 crore, with an operating surplus (provisional) of Rs 124.69 crore.
But for the torrential rains for over two months during the last fiscal, we would have touched the 50 million tonne mark. Now it is the cargo handling target for next year Mr K Suresh, chairman of the Port Trust said.
At 13.21 million tonne and 9.46 million tonne, petroleum products and iron ore were the major cargos for the port.
Visa Steel commences part operations of coke oven plant in Orissa
Visa Steel Ltd has informed BSE that on March 27, 2006, the Company has commissioned 100,000 tonnes per annum out of the 400,000 tonnes per annum capacity Coke Ovens as per schedule.
The Coke Ovens are located at Kalinganagar Industrial Complex in district Jajpur of Orissa.
Japanese steel export continues to drop in Q2
Japanese export of carbon steel products decreased by 14% to 1.787 million tonnes in February from a year earlier, representing decreases for 15 months in a row, announced by Japan Iron and Steel Federation on.
However the export increased by 12% from January, which was first increase in 2 months.
Ternium buying out 50% stock of Acerex from Worthington Industries
Luxembourg based Ternium SA steel company is buying out 50% stake from Worthington Industries in the Acerex SA de CV venture in Colombia for $44.6 million, after which all of Acerex's stock will be held by Ternium unit Hylsa SA de CV. Worthington Industries has formed the JV with Hylsa SA de CV in 1994 and Hylsa SA de CV was recently acquired by Ternium.
Acerex is a Colombia based entity that processes steel to produce short length and thin steel sheets in various widths. It has a total annual production capacity of 544,000 tons.
Columbus Ohio based Worthington Industries is a leading diversified metal processing company in Us with annual sales of approximately $3 billion.
Sumitomo Metal unveils measures against hostile takeover bids
Japanese steelmaker Sumitomo Metal Industries Ltd. unveiled corporate defense measures centering on share subscription warrants to ward off hostile takeover bids. The measures call for issuing subscription warrants to existing shareholders with an eye to converting them into new shares in the event that a hostile investor or a group of such investors acquires a stake of 20% or more of the firm's voting shares. These conversions would dilute such investors' stake and influence over management.
The steps call for demanding that unsolicited acquirers provide information on the purpose of their acquisition of the firm's shares and the business policies they plan to follow if they gain control over its management. If the acquirer or acquiring group turns down the firm's request to provide such data, the company would invoke the defense measures, it said. If the large-stake acquirer or acquiring group complies with the request for information on their envisioned management policies, the firm's management would map out and put forward counterproposals to the policies in order to seek a judgment from shareholders, it said.
Sumitomo Metal Industries earlier said it would counteract such hostile takeover attempts by teaming up with Nippon Steel Corp. and Kobe Steel Ltd.
Severstal increases finished steel production by 5.9% in Q1
Severstal has increased production of rolled products by 5.9% YOY during the first quarter of 2006. Mr Alexander Pogozhev production Director of Severstal informed, that for corresponding period the plant also increased production of crude steel by 19.6%, production of pig iron by 16.2% and agglomerate by 7.5%.
The increase in steel making was due to the development of new technologies and equipment, introduced in steelmaking facilities during 2005. Production of pig iron increased due to completion of major repair of BF No 4 in December 2005.
Payback decision to hamper Arcelor's growth plan- Mr Roeland Baan
Arcelors decision to pay shareholders up to 5 billion euros will hamper its growth said Mittal Steel. Combined paybacks will hinder Arcelor's plan to lower costs by expanding in developing countries said Mr Roeland Baan CEO of Mittal Steel Europe. "It really hampers potential growth in the future" Mr Baan is reported to have said.
On the other hand Arcelor spokesman Mr Jean Lasar said payouts won't hamper future investment based on the steel maker's projected earnings. "The dividends are the fulfillment of our promise to make our shareholders participate in the results of our successful model" Mr Lasar.
Ukraine to decide on Kryviy Rih iron ore plant on 12th April
The Ukrainian government is likely to reach a decision on the future of the incomplete Kryviy Rih Oxidized Ore Mining and Beneficiation Plant on April 12.
Ukraines Prime Minister Mr Yuriy Yekhanurov said at a meeting of the Economic Policy Committee "We should reach this historic decision on Wednesday."
Shandong pulls out of El Mutn iron ore deposit bidding in Bilivia
It is reported that China's Shandong Luneng Corp has pulled out of the bidding process for the El Mutn iron development project in Bolivia's Santa Cruz department.
The four companies that are still in the bidding process already have purchased bidding rules. Brazil's EBX Siderrgica received initial bidding documents on April 6 while Europe's Mittal Steel is next in line for April 10-11, followed by India's Jindal Steel & Power on April 12-13 and Argentina's Siderar on April 17-18. These companies will provide comments to the local and national government on the bidding rules and the tender contract on April 28.
Bolivia's mining and metallurgy minister in March announced that the government had set the bidding deadline for May 22.
El Mutn is one of the world's largest iron ore deposits, with some 40 billion tonnes of reserves over 60 square kilometers in Santa Cruz department with an average content of 50% iron, according to official figures.
V&M orders a round billet caster to Danieli
French Vallourec & Mannesmann Tubes, world leader in the production of seamless tubes, has awarded Danieli Centro Met the order for a FastCastTM bloom caster to be installed at the Saint Saulve steelmaking plant. The new caster will be installed in the existing melt shop that today includes a 90 ton Danieli EAF, a LF, a slag rake station, a Danieli twin tank VOD unit and a 4 strand 20 meter high rotary vertical machine that V&M installed in 1974.
The new caster will be equipped with all latest technology available in continuous casting of special steels, including electromechanical stopper rods, tundish with 1meter steel level for excellent inclusion flotation, Danieli Rotelec mould EMS, hydraulic oscillators, air mist secondary cooling, finishing end with oxy torches, sample cutting, blooms deburring and marking machines.
The 4 strand 12 meter radius conticaster will be designed to cast 800,000 tonnes per year of special steel round blooms in sections from 180mm to 325mm diameter in carbon grades for special applications, boron, spring, bearing and free cutting grades, stainless steel and micro alloyed qualities for final production of seamless pipes.
Corus develops unique integrated crash box bumper
Corus has developed an integrated crash box bumper that it believes will offer vehicle and component manufactures both weight and cost savings compared to existing front end module systems. Developed by the Corus Hyfo business based in IJmuiden in the Netherlands with the technical support of Corus RD&T and Corus Automotive Engineering, the unique integrated crash box bumper system is the first of its kind in Europe to market. Crash box system offers 20% weight savings with equivalent performance and manufacturing cost savings of up to 10% per unit.
It combines the latest hydroform tube technology with advanced high strength dual phase steels resulting in a mono piece construction that, Corus believes, will contribute to reduced vehicle weight and therefore lower fuel consumption and CO2 emissions. Corus employed its unique materials analysis simulation technique called Forming to Crash or F2C to further optimize the design of the crash box.
Dr Iain McGregor Manager Technology of Corus Automotive Engineering said Following extensive desktop trials, we have been able to demonstrate reduced cost and weight to below the 8kg weight target, whilst maintaining performance for absorbing and dissipating forces during head on collisions.
Inco may sell Falconbridge unit for getting EU Approval
It is reported that Inco Ltd., the world's second biggest nickel miner, may sell a metals buying unit along with a Norwegian refinery to win European approval for its $13.2 billion takeover of Falconbridge Ltd.
EU regulators on February 24 opened an in depth probe of the deal, which would create the world's largest nickel producer, saying that the Toronto-based companies may dominate the nickel and cobalt markets. Inco has offered to sell Falconbridge International Ltd. to address the concerns, said the people, who declined to be identified because the proposal isn't public.
The commission will study the replies from Inco rivals and customers and decide by July 12 whether to approve the takeover. The transaction, which has already been cleared by Canadian authorities, is also under review by the US Department of Justice.
Metso to supply crushing equipment to ASSMANG
Metso Minerals will supply crushing equipment to ASSMANG for its new BKM iron ore expansion project in the Northern Cape Province, South Africa. The project will be completed by November 2007. The value for the equipment is approximately EUR 12.5 million. The order has been booked in the order book for the first quarter of 2006. This is the first time that an MP type cone crusher, suited for hard, tough mining operations, is being installed in Southern Africa.
The delivery comprises a primary gyratory crusher, a secondary cone crusher and three tertiary cone crushers, auxiliary equipment as well as erection and commissioning of the units. Once in operation, the system will be able to process approximately 15 million tons of iron ore per year. The crushed ore will be exported as raw material to its clients around the world.
ASSMANG is a supplier of raw material to the world's steel mills and alloy plants. Its Iron Ore Division mines iron ore mainly for export purposes.
Metso is a global engineering and technology corporation with 2005 net sales of approximately Euro 4.2 billion. Its 22 000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.
Kennametal sells UKs tool steel business to Suncraft
Kennametal Inc has agreed to sell its Presto high speed steel business in UK to Suncraft International Corp at undisclosed amount. Kennametal said that the deal is in line with its strategy to focus on manufacturing. The sale is expected to close by June 30.
Suncraft will acquire the UK assets and manufacturing operations of the business and will assume the lease of a plant in Sheffield in England. The employees at the facility will become Suncraft employees when the transaction closes.
Suncraft, which is incorporated in Chula Vista California and lists China as its headquarters is a supplier of cutting tools and also sells cast aluminum patio furniture.
Belarusian Mogilyoy pipe mill increases output by 12% in Q1
Belarusian Mogilyov Metallurgical Plant, a producer of iron and steel pipes, has increased its output by 12.2% YOY in January to March quarter by producing 27,660 tonnes of steel pipes. Output in value terms increased by 19% YOY, to reach revenue of 50.3 billion Belarusian ruble.
Exports grew by 48% and Germany accounted for 60%, Russia 35% and the Baltic States 3% of the plant's sales.
Mogilyov Metallurgical Plant produces ERW pipes, water and gas mains piping, shaped pipes and iron shots.
Rio may spend $1 billion on Indonesian Nickel mine
Rio Tinto Group is reported to be in talks to invest at least $1 billion in its first Indonesian nickel mining project citing Indonesian Energy and Mineral Resources Minister Mr Purnomo Yusgiantoro. The company is studying a laterite deposit containing nickel on Sulawesi Island, Mr Purnomo said in an interview and that Rio Tinto and central government officials are in Sulawesi to discuss the plan with regional authorities.
Overseas miners have to sign a so-called contract of work to tap resources in Indonesia. The government is planning to replace the contract of work system with licenses issued by local administrations under a proposed new mining law.
Indonesia has about 16% of the world's nickel in laterite, which is more costly to process than other deposits. While 72% of the world's nickel is in laterite, the ore variety accounts for 42% of global production, according to data from Toronto based Inco.
Coal mine blast kills 4 Dongtang mine in Hunan province of China
Four people were dead with another five missing at a coal mine gas outburst accident that occurred on Thursday night in Lengshuijiang City in the central China's Hunan Province. At around 10:24PM on Thursday, a great amount of gas burst out suddenly at the Dongtang Coal Mine of the city, when nine miners, including four female, were working underground. The accident killed four miners while five others are still missing.
The four women involved are yet to be identified. China's labor law strictly forbids women from working in mine shafts.
Mr Yuan Xinzhong, head of the coal industry bureau of Lengshuijiang city said the Dongtang Coal Mine is a licensed colliery with an annual production capacity of 10,000 tons. However in March the provincial government of Hunan ordered all collieries with high gas content and high risks, including the Dongtang Coal Mine, to suspend production but the mine has continued operating against the order.
Harscos MultiServ bags new assignments at NSA & US Steel
Harsco Corp.'s MultiServ mill services division has reported securing two new multi year service contracts.
North American Stainless chose MultiServ to take over on site slag and scrap material handling services for the melt shop and scrap yard operations in Ghent. The agreement begins this month and is MultiServ's first formal contract with NAS, although it has provided similar services at mills in Spain and South Africa operated by NAS's parent company Acerinox SA.
In addition US Steel named MultiServ to handle screening for up to 2 million tons per year of iron ore pellets at the Great Lakes Works in Ecorse under a new four year contract. Also, MultiServ will assume responsibility for pellet screening at the USS Fairfield Works and will also handle mill scale transport. MultiServ serves US Steel at various locations in the US and Eastern Europe.
Padana Tubi orders RD 355 tube welding line to SMS Meer
Italian Padana Tubi SpA has recently placed an order with SMS Meer Mchengladbach Germany, for the supply of an RD 355 tube welding line.
The scope of supply includes a strip preparation section, spiral strip accumulator, tube welding machine with straightedge forming section and change equipment as well as a tubular section cut-off machine. The stands of the tube welding line will have SMS Meers proven URD design that in conjunction with the computer aided Quicksetting system permits exact and reproducible roll setting. In addition, short size-changing times will be achieved thanks to the automated roll quick-changing system. The maximum welding speed is 60 meters per minute.
The product mix of the line predominantly covers structural round, square and rectangular according to EN 10 219 DIN. Tubes can be produced in the following size ranges: Round tubes with outside diameters from 127mm to 355.6 mm and hollow sections in the corresponding size range ie square from 100 mm sq. to 280 mm sq. and rectangular from 150mm x 50 mm to 360 mm x 200 mm.
SMS Meer GmbH forms part of the Tube, Long Product and Forging Technology Business Area of the SMS group.
Mitsui & Co's metal division to seek stable growth
Mitsui & Co's metal segment targets 125 billion yen of consolidated recurring profit for the worldwide business of steel products, raw materials of steel and nonferrous metals in medium term. The segment expects the profit will increase to 1.5 times to 93 billion yen for fiscal 2006 ending March 2007 from fiscal 2005.
Mr. Hiroshi Tada senior executive MD of the firm said the unit is setting the targets for mid term plan ending fiscal 2010 and he considers the targets are 90 billion yen for iron & steel raw materials and nonferrous business unit and 35 billion yen for iron & steel products business unit in 5 years from now.
NCC wins LKABs iron ore harbor modernization order
NCC AB said that it has won an order worth around 290 million skr to modernize Swedish state owned iron ore mining firm LKAB's ore harbor in Narvik, in Norway.
The project comprises the modernization of LKAB's ore unloading facility in Narvik and will generate considerable environmental, production and quality gains for LKAB, NCC said.
Siemens to supply electrical equipment to Chinese Xinji coal
A consortium composed of the Siemens Industrial Solutions and Services Group and Siemag GmbH Netphen has received an order from SDIC Xinji Energy Co Ltd. to supply three winding machines for two coal mines in Anhui, a province in China. The Siemens scope of supply comprises the winding motors, including converters, as well as the power, automation and safety systems. The total order value is around 14 million euros.
The three machines of the identical winding installations are four rope friction wheel ground mounted machines with a diameter of 4.8 meters. Siemens is supplying the synchronous motors, each with an output of 4.7 megawatts, as well as the associated 12 pulse cyclo converters of the type Simovert D Motors and converters are air cooled. The drives will be controlled by means of an FM458 Simatic application module.
The scope of supply also includes high-voltage transformers, the low-voltage switchgear and motor blowers. The winding machines have an emergency operating mode, which means that, even if faults occur in a converter or transformer, production can continue at half speed but with the full load of 32 metric tons. Siemens is also responsible for commissioning the equipment on site whereas Siemag GmbH is responsible for the mechanical components.
Xinji Energy is a leading coal producer with mines in the east Chinese province of Anhui. Company is building two new shaft installations in Banji and Kouzidong. The Banji mine, which will be supplied with a new winding machine, will have a winding capacity of three million metric tons per year at the end of 2007. The installation in Kouzidong is to produce around five million metric tons of coal per year with the help of two new winding machines.
Chinese hot rolled coil prices on rise
It is reported that the export prices of Chinese hot rolled coil to the South Korean market is continuing to rise. According to reports from a Chinese mill, the HRC price for pipe usage is at around $480 FOB while the price for cold rolling is around $490 FOB. The price when freight charges have been added would be more than $500 for South Korea.
This has caused major worry to South Korean buyers.
ThyssenKrupp launches DAVEX lightweight profiles
Gelsenkirchen based ThyssenKrupp DAVEX GmbH has developed double-T profiles of thin steel sheet for use in drywall construction, storage systems and lightweight load-bearing steel structures. The DAVEX lightweight profiles offer the same strength as conventional beams but weigh up to 50% less. DAVEX lightweight profiles are double-T profiles with flanges of between two and four millimeters and webs of one to two millimeters in thickness. Made from both black and galvanized steel strip, the profiles are available in heights of 25 to 200 millimeters and widths of 25 to 180 millimeters.
Using this technology, ThyssenKrupp DAVEX has already launched DAVEX carbon steel facade beams and DAVEX stainless steel beams with great success in the construction and engineering sectors.
In addition to the galvanized double-T profiles used to launch the range, further geometries and finishes are possible in the future.
Rio Tinto advances big in Chaupadi coal project in SA Limpopo
Rio Tinto has completed 30 holes on its Chapudi coal project in South Africa's Limpopo province and obtained 22 intersections of seam six in an area that could yield a billion plus tons of coal ED of exploration Mr Tom Albanese said. Describing deposits of Chapudi's size and quality as being few and far between Mr Albanese said that Chapudi represents a first class opportunity to help meet South Africa's future energy needs, without imposing further environmental burdens on existing producing basins.
Mr Albanese said that the results from the very first drill hole in Chapudi provided immediate encouragement with the intersection of seven coal seams within the Karoo Ecca sequence. From these intersections, seam six stood out as being most significant, comprising as much as 40 meters of bright, although heavily inter banded coals, while seam seven is some 15 meters thick and contains largely dull coals that could offer a thermal product Mr Albanese said.
Work at Chapudi to date shows a structurally simple sub cropping deposit of thick coal seams dipping northwards at between eight and ten degrees, with preliminary calculations suggesting that, to a depth of 200 meters, there are 55 million tons of raw coal available for each kilometers of strike from seam six alone. This consists of 35 kilometers of strike in the main portion of the Chapudi deposit, plus another 15 kilometers in a structurally repeated block to the north east. If consistency prevails across the 30 kilometers, Rio Tinto could be sitting on well over a billion tons of coal Mr Albanese said.
The target is export coking coal but any development will also entail the production of thermal coal suited to domestic power generation. While the Chapudi resource team presently considers only seam six to be economic, if a thermal only option is considered, it is possible that seam seven could have a positive effect on the cost of coal produced.
Construction of Baltic pipeline completed
Russian Transneft announced the completion of the Baltic Pipeline System construction in the seaport of Primorsk. The Baltic Pipeline System with a capacity of 65m tons per year is designed to deliver oil exports to the European and US markets. The system will enable Russia to secure oil transit to the Baltic region via its own territory.
Russian President Mr Vladimir Putin said that the completion of the Baltic Pipeline System was an important step for Russia and other countries in energy sector development. "This is a major step forward in the development of the infrastructure which will increase Russia's opportunities on the world markets and is a contribution to global energy Security" Mr Putin said at a meeting with Mr Semyon Vainshtok, the head of state pipeline monopoly Transneft.
UMMGs Serov Metallurgic Plant repairing blast furnace
Ural Mining and Metal Groups Serov Metallurgical Plant announced that it has begun work to repair of one of its three blast furnaces. The plant intends to spend around RUR200 million on the work.
TopAlter Trading gets approval for shredder plant in Mobile
The city of Mobiles Planning Commission has approved Alter Tradings plan to build and operate an auto shredding operation in the city. However, a spokesman for the commission said that the approval includes a number of conditions, including installing storm water retention ponds if needed, adding vegetation to the site to reduce the problem with noise for the surrounding area and the requirement that the auto shredder could only operate between the hours of 6AM and 6PM with only maintenance allowed at other times.
The Mobile Register notes that with the approval by the Planning Commission the $20 million facility could be operational by this year.
Alter, one of the largest scrap metal recyclers in the country, is expected to begin shredding cars this summer, and will also handle junk metal from stoves, refrigerators and laundry machines. The company plans to sell metal to local steel mills and foundries when it opens later this year.
KAMAZ to renew Yuzhkuzbassugol fleet of trucks
It is reported that Russian truck giant KAMAZ OJSC has signed agreements with Kemerov based Yuzhkuzbassugol OJSC and Yurga Machine Building Plant Ltd for renewal of the fleet of trucks and special machines.
Under the agreement OJSC Yuzhkuzbassugol is to renew its fleet of trucks for hauling coal.
Venezuelan Sivensa to buy back 15% stock
Venezuelan steelmaker Sivensa announced that it will acquire up to 15% of its shares, up to $24 million worth, that have been held by a group of creditors since a financial restructuring in 2002 in six months with the help of a $19 million loan from Deutsche Bank.
The buyback forms part of a new $113.5 million refinancing agreement for debt belonging to Sivensa and its subsidiary Sidetur, which produces steel and steel products for the construction sector.
