May, 01 2006
TATA submits final investment proposal to Bangladesh
TATA Group on Sunday re submitted a proposal to Bangladesh for investment of about Rs 13,500 crore ($ 3 billion) for setting up steel, fertilizer, power and coal mining projects. The negotiations of the key terms of these projects commenced last year and have now entered the final stages with the submission of this comprehensive package which addresses issues of gas prices, fiscal incentives and coal mining.
TATA Group has proposed a product linked gas pricing formula which at today's commodity prices offers Bangladesh an attractive price for its natural gas. The proposal also details on how the Tata Group would implement its commitment to the corporate social responsibility to these projects. This would include setting up two hospitals and three technical training institutes near the plant sites.
Mr Alan Rosling, ED of Tata Sons said "Bangladesh continues to be a focus market for Tata Group's international expansion plans. We are hopeful that our revised proposal meets the concerns raised by the Bangladesh negotiation team. We strongly believe that these projects are good for Bangladesh and good for the Tata Group. They would have significant positive economic impact on Bangladesh, increasing growth, creating employment and contributing significantly to the Balance of Payments of the country. We look forward to an early positive response from the Government of Bangladesh."
Mr Mahmudur Rahman, Chairman Board of Investment said "Tata's negotiating team has given a well thought out proposal and has shown they are committed to the project. We hope to give our reply soon."
Indian government approves open cast coal capacity expansion
Indian Cabinet Committee on Economic Affairs has approved the creation of an additional 43.5 million tonnes of coal production capacity through opencast mining.
The first approval is given for increase in the production capacity of Ashok open cast project of Central Coalfields from 1.5 million tonnes to 6.5 million tonnes in the first phase and another 3.5 million tonnes in the second phase taking the total capacity to 10 million tonnes annually. This coal, it has been decided, would be made available to Rosa Thermal Power Station and other consumers.
The second approval is to increase production in Bhubaneshwari opencast project of Mahanadi Coalfields from the existing 10 million tonnes a year to 20 million tonnes a year. This coal will be made available to NTPC and other State Government owned thermal power stations in Orissa.
CCEA also approved outsourcing coal production to the tune of 10 million tonnes from Kaniah opencast coal mining project of Mahanadi Coalfields, which would be completed in 2008-09 and would be supplied to Rajiv Gandhi thermal power station of NTPC in Orissa.
CCEA also gave the green signal for floating tenders for outsourcing additional coal production in Dipka opencast mine project by 5 million tonnes annually and in Gevra opencast project by 10 million tonnes annually.
Jindal Stainless sees SS demand to grow by 12% per annum
India's leading stainless steel manufacturer Jindal Stainless Limited is anticipating a 12% growth in domestic stainless steel market in coming years due to strong demand fro building and construction segment. Mr NC Mathur director of JSL said "We expect the demand of stainless steel to grow at 12% per annum in Indian market out of which 25% would be used in architecture, building and construction."
Mr Mathur said "The real state sector is booming and we make a conscious effort to promote stainless steel by innovative and long-lasting designs, we expect the metal to grow with the sector.
JSW to invest Rs 15,000 crore in expansion project
Mr Sajjan Jindal vice CMD of JSW Limited said that JSW will invest Rs 15,000 crore for taking up 10 million ton steel production plant and 600 MW power production plant as part of the expansion project at Jindal Vijayanagar steel works.
Mr Jindal said that both the projects would be completed by 2008. Already Rs 8,000 crore was invested for the 3 million ton steel plant and the work was under progress.
Indian cabinet approves Bangalore metro rail project
Indian government has approved Bangalore Metro Rail Project covering a length of 33 kilometers in two corridors at a cost of Rs 5,453 crore. The group of ministers had approved the Rs 6,300-crore project earlier this month and it was waiting for clearance by Cabinet Committee on Economic Affairs.
The Bangalore Metro will have an east-west corridor of 18.1 kilometers and a north-south corridor of 14.9 kilometers. Both the corridors will have elevated, underground and a small portion of surface rail lines.
The project is to be implemented by Bangalore Metro Rail Corporation in five years. BMRC has tied up with Japan Bank for International Cooperation for a loan of Rs 1,699 crore for phase I of the metro rail transit system.
Jindal Saw almost doubles net profit in last quarter
Jindal Saw Ltd has announced the following unaudited results for the quarter ended March 31, 2006.
The Company has posted a net profit of Rs 471.26 million for the quarter ended March 31, 2006 as compared to Rs 270.468 million for the quarter ended March 31, 2005. Total Income, net of excise, has increased from Rs 6918.134 million in quarter of 2004-05 to Rs 9550.411 million for this quarter of 2005-06.
MECL posts highest ever profit in 2005-06
State owned Mineral Exploration Corporation Limited has posted a net profit of Rs 5.63 crore during the last fiscal 2005-06 which is an all time high in last 20 years in the history of the company. The net profit has thus registered an increase by 43% as compared to Rs.3.95 crore during previous financial year. A total of 178,343 meter drilling was carried out during 2005-06 as compared to 173,144 meters 2204-05.
MECL was on the brink of closure and under active consideration for disinvestment two years back, is now on threshold of a giant leap. Mr Rajneesh Gupta CMD of MECL Gupta said the financial restructuring of MECL could not be completed in year 2005-06 but expressed hope that it would be done in next six months and wage revision of the staff would also be made.
MECL has carried out work on behalf of companies like ONGC, Hindustan Copper, Western Coalfields Limited and Hindustan Zink Limited.
Q1 2006 global crude steel production up by 6%
World crude steel production for the 62 countries reporting to the International Iron and Steel Institute during January to March 2006 is 283.8 million tonnes up by 6% over 268.1 million tonnes in January to March 2005.
Asia produced 146.9 million tonnes during the quarter up by 12% over 131 million tonnes during Q1 of 2005. The growth was led by China, which produced 92.5 million tonnes an increase of 19% over 77.6 million tonnes in Q1 of 2005. India produces 10.439 million tonnes registering growth of 17%.
EU (25) at 48.721 million tonnes, North America at 32.3 million tonnes and CIS at 27.6 million tonnes in Q1 of 2006, maintained production at levels of Q1 2005.
Latin America with 10.5 million ton production registered 5% negative growth in Q1 of 2006 as against 11.1 million tonnes in Q1 of 2005.
Africa produced 4.058 million tonnes in Q1 of 2006 registering negative growth of 6% over 4.322 million tonnes in Q1 of 2005.
Middle East produced 3.761 million tonnes in Q1 of 2006 an increase of 5% over 3.578 million tonnes in Q1 of 2005.
Australia & New Zealand produced 2.117 million tonnes registering 1% growth over 2.104 million tonnes in Q1 of 2005.
Evraz plans to close Stratcor acquisition by June
Evraz Group plans to complete the acquisition of Stratcor Inc in H1 of 2006. Under the acquisition agreement, Evraz Group is to purchase 73% of all outstanding shares of Stratcor. The transaction has been evaluated at $110 million. Transaction can only be put through if the US antitrust body approves it, and it is difficult to predict when the decision will be made.
Stratcor Inc is one of the world's largest vanadium producers controlled by Strategic Minerals Corporation.
Evraz Group believes that the acquisition will enable it to fill in the gap in its own vanadium producing facilities and consolidate its position on the highly profitable vanadium market. Apart from this, Evraz Group will gain access to Stratcor's technology and marketing expertise.
Baosteel and Taiyuan sign strategic cooperation agreement for SS
In the latest move to restructure China's iron and steel industry, two of China's leading stainless steel companies Shanghai Baosteel Group Corporation and the Taiyuan Iron & Steel (Group) Company Ltd signed an agreement on strategic cooperation on Saturday vowing to enhance their respective technological innovation capabilities and improve enterprise management.
Under the agreement, the two companies will start with technological cooperation in each other's new stainless steel projects and further explore new areas for cooperation.
Death toll reaches 27 in Shanxi coal mine gas blast
Death toll rose to 27 and 5 others remain missing in a coal mine gas explosion in Yan'an City in Shaanxi Province according to the latest information from the rescue headquarters.
The gas blast happened at 4:20PM on Saturday in Wayaobao Township Coal Mine in Zichang County of Yan'an when 39 miners were working beneath the shaft and only seven miners managed to escape to the ground.
An investigation into the cause of the accident is under way. The local police have detained owner of the coal mine and other managerial staff.
Wayaobao Township Coal Mine, about four kilometers away from the seat of Zichang County, is a legal, privately invested coal production entity with an annual production capacity of 30,000 tons.
Australian senators calls for mineral exploration in Antarctica
Mr Barnaby Joyce senator of Australias National Party Senator has called on to undertake mining the rich resources of Antarctica after his month long visit to Antarctica as a member of the federal Parliament's External Territories Committee. He said There's minerals there, there's gold, there's iron ore, there's coal, there's huge fish resources.
He said that Australia's claim to 42% of the frozen continent is not recognized by a lot of countries. He fears that Australia does not have any real power to stop other nations exploiting Antarctica.
He said that although he recognizes that many will find it extremely distasteful to think of any form of development in the Antarctic, Australians cannot fool themselves and thinks that no other country will do it.
Labor Day today
May 1st, International Workers' Day, commemorates the historic struggle of working people throughout the world, and is recognized in every country except the United States, Canada, and South Africa, despite the fact that the holiday began in the 1880s in the United States, with the fight for an eight hour work day.
In 1884, the Federation of Organized Trades and Labor Unions passed a resolution stating that eight hours would constitute a legal day's work from and after May 1, 1886. The resolution called for a general strike to achieve the goal, since legislative methods had already failed. With workers being forced to work ten, twelve, and fourteen hours a day, rank-and-file support for the eight-hour movement grew rapidly, despite the indifference and hostility of many union leaders. By April 1886, 250,000 workers were involved in the May Day movement.
Evraz to invest $345 million in 2006
Mr Tatyanin CFO of Evraz Group said that $435 million would be invested in production this year with the bulk of investment, up to 80%, going on modernization and reconstruction of the company's metallurgical enterprises. He added that $125 million would be spent on environmental programs in the next five years.
Mr Tatyanin said that Evraz Group aims to increase finished steel output by 1 million tonnes in 2006. Evraz produced 12.2 million tonnes in 2005. However Mr Tatyanin said that higher output was not the Evraz Group's sole aim. He said "Return on capital is the main thing. If we need to produce more steel in order to increase our capital and returns, then we are able to do so. For the time being we're looking at income and making our company one of the most profitable."
He said that the group's foreign assets, which were not consolidated in last year's results, would generate the growth in output. The group acquired Italy's Palini e Bertoli SpA and the Czech Republic's Vitkovice Steel in 2005.Palini e Bertoli produced around 350,000 tonnes of roll and Vitkovice Steel 850,000 tonnes in 2005.
Mr Tatyanin said that the West Siberian mill would increase production slightly after its BF No 3 furnace has been overhauled. He said production would dip at the Nizhny Tagil and Novokuznetsk plants as their equipment is stopped for overhauls.
Baosteels Chairwoman may step down
Chinese media has reported that Ms Xie Qihua Chairwoman of Baoshan Iron & Steel Co, the listed arm of China's largest steel producer Shanghai Baosteel Group may step down in this month in order to make way for Baoshan's next generation of leaders.
It is reported that Ms Xie had recommended Mr Xu Lejiang currently GM as her replacement.
Metals USA reports results for Q1 of 2006
Metals USA Inc, a wholly owned subsidiary of Flag Intermediate Holdings Inc, announced its first quarter 2006 operating results. Sales revenues of $430 million exceeded prior year sales of $428 million as volumes climbed by almost 5% in the metal distribution segments. On a sequential basis, sales revenues were up by $41 million when compared to fourth quarter 2005 sales revenue of $389 million, with volumes up more than 10%.
Mr Lourenco Goncalves President and CEO of Metals USA said "The market in the last three months was substantially different from a year ago. In the first quarter of 2005 we found prices strong at the beginning of the quarter but weakening throughout the period, and continuing to trend downward until the end of the third quarter. This year, we find ourselves in the second quarter and still experiencing a strong market, in which prices have continued to move up as availability of materials has tightened."
Flag Holdings Corporation completed its acquisition of Metals USA Inc on November 30, 2005.
Metal Management & Southern Holdings sell Southern Recycling
Metal Management, Inc and Southern Holdings LLC have announced the sale of Southern Recycling LLC to European Metal Recycling Ltd to EMR for $161.4 million in cash. Southern Holdings LLC owned 71.5% of Southern Recycling LL.C and Metal Management Inc owned the remaining 28.5%.
Mr Daniel W Dienst Chairman, President and CEO of Metal Management Inc said "EMR's valuation presented an outstanding opportunity to realize a significant and immediate cash return on Metal Management's investment in Southern Recycling."
Mr Edward L Diefenthal co owner and CEO of Southern Holdings LLC said "Though bittersweet for my family, EMR's earnest interest convinced us to sell our stake in Southern Recycling."
Headquartered in Covington Louisiana, Southern Recycling LLC is the largest scrap metal recycler in the Gulf Coast region with 15 facilities in Louisiana, Alabama, Mississippi and Florida.
Metal Management is one of the largest full service metal recyclers in the United States, with approximately 50 recycling facilities in 16 states.
Molten steel spills at Mittal Steels Indiana Harbor plant
It is reported that about 200 tons of molten metal spilled from a ladle when a crane's hoist became entangled with the ladle's tilting mechanism at Mittal Steel USs plant at Indiana Harbor on Friday night. Two workers were treated for minor injuries.
The molten iron poured onto the ground causing a fire in the Number 3 production which took four hours to extinguish. The shop is reported to have been shut down and it's unclear how long it would take to repair damaged area.
The Number 3 shop produces about 3 million tons of steel a year.
Steel business restored at Port New Orleans to pre Katrina levels
The American Institute for International Steel has released figures recently, showing that steel, the leading commodity in the Port of New Orleans, has returned to pre Katrina tonnage levels. AIIS President Mr Dave Phelps said "We are very pleased to see the efforts the Port of New Orleans has made to get the steel trade back to normal."
Mr Gary LaGrange President and CEO of the Port of New Orleans said "We sincerely appreciate the loyalty that steel shippers have shown to New Orleans. Their business has played a very important role in the recovery of the Port and the entire New Orleans region. We worked hard to get the first ship in the Port of New Orleans within two weeks, which demonstrated to the world that we are still a great transportation hub.
The Port of New Orleans has been a main hub for the import of steel particularly because its access to the Mississippi River and its tributaries allows for distribution to manufacturing plants all over the country.
Wahome Steel not to renew lease agreement with IRL
Ghanas Tema based Wahome Steel Limited registered it's displeasure over the operations of Intrinsic Resources Limited, which took over its leased recycling plant for production. WSL said it had become abundantly clear that IRL failed to bring any foreign direct investment into the country during its three-year operation and challenged IRL to produce document from the Bank of Ghana or the Ghana Investment Promotion Centre to show monies brought into the country.
Mr Isaac Yeboah CEO said that WSL would not renew the lease agreement between the two because the IRL had allegedly engaged in massive money laundering activities and effected huge net foreign exchange outflows much to the detriment of the Ghanaian economy.
WSL, incorporated in Ghana in 1989, produces billets from scrap for rolling long products for the construction industry. On December 14, 2001, WSL and IRL entered into an agreement to lease WSL steel plant for a term of three years. According to the agreement IRL was to pay rent every year.
On behalf of the Board and Management of WSL, Mr Yeboah said that the Company would continue to operate, meet its statutory obligation and generate income within the country. According to him, WSL was a viable entity and told the workers that they would not be laid off.
Solid energy studies high quality coal option for Spring Creek
It is reported that New Zealands Solid Energy has delayed a decision on the future of its Spring Creek underground mine north of Greymouth, as it looks for a way to make the operation economically viable. An option being investigated now would need an investment of up to $30 million. If the numbers fail to stack up the mine could close in January, affecting 130 jobs.
Solid Energy announced that it would make a decision on the future of the mine in July, rather than this month as had been intended. In the meantime the company was looking into the feasibility of producing a high quality thermal coal from the mine.
Development of the new area would take a year before extraction could begin. An investment of up to $30 million would be needed and the area could be mined for between five and seven years.
Evraz Group not discussing merger
Mr Valery Khoroshkovsky Evraz Group's president told a briefing that there's no question of a sale when asked to comment on press reports that the group's enterprises may be sold.
Mr Pavel Tatyanin CFO of Evraz Group also said that the company had enough resources to conduct an effective business.
Masseys White Buck coal mine charged over safety
Federal prosecutors filed criminal charges against a subsidiary of Massey Energy Co accusing it of faking safety records at its Nicholas County coal mine. The White Buck Coal Co is charged with falsely recording that it performed a pre shift exam at the Grassy Creek No. 1 mine near Leivasy in June 2002. Such exams are required to check air and methane levels, among other things, before miners enter to work.
The two count charge says White Buck failed to conduct adequate pre shift exams on numerous occasions in May and June 2002 before the daily third shift, which begins around 11PM.
Falsifying pre shift exam records is a felony, while the other charge is a misdemeanor and White Buck faces a maximum fine of $700,000 if convicted.
White Buck is separate from the two Massey subsidiaries where three mine workers have died this year. A January 19 belt line fire killed two miners at Aracoma Coal Co's Alma No 1 mine in Logan County and one miner was killed when his machine ruptured a natural gas line at Elk Run Coal Co's Black Castle surface mine.
Mitsubishi Corp reorganizes ferrous raw materials division
It is reported that Mitsubishi Corporation s ferrous raw materials division renewed the organization of investment and sales to improve the function mainly for Japanese steel makers. The firm transferred Australian coal investment unit from CEO office of Metals group to the division while the division spun off the sales function of iron making raw materials.
The division unifies the control of resource investment for steel raw materials under the strategy including sales seeking new resource projects for next generation. The sales unit improves trading function in the market with the own risk while the unit improves supporting function for Japanese steel makers. The division reorganizes itself for new business model of trading firm in steel raw materials by improving the function both in sales and investment under the synergy.
Blzae recycling puts another shredder
Norcross-based Blaze Recycling & Metals Inc. has expanded its operations by opening a second shredding facility behind the airport in Lawrenceville. The facility, which encompasses 7 acres, includes an exclusive 300-foot shredder capable of taking an entire car and sorting out its parts.
The state of the art shredder, the Harris HS 98115, is the only one in the United States to be installed in a recycling facility this year. The mammoth machine, which is made by a Georgia based company, is primarily used to shred automobiles but is also capable of shredding steel in any form up to one inch thick.
Mr Craig Blase one of the owners said You put a whole car in it and it comes out, and the machine has magnets that sort the steel and separates aluminum. You get two products from the machine that were able to sell to the open market.
BHP Billiton prices Euro 650 million Euro Bond
BHP Billiton announced that it has priced EUR650 million of 4.125% Euro Bonds due May 2011.
The proceeds will be used to repay debt incurred to fund the recent acquisition of WMC Resources Limited.
GSHL owners meet Bulgarian president
It is reported in local dailies that owners of Global Steel Holdings Mr Pramod Mittal and Mr Vinod Mittal met Bulgarias president Mr Georgi Parvanov on Saturday. They familiarized him with modernization and development plans they have for Bulgarias largest steel mill Ktemikovtzi AD, which their group owns.
The Mittals also unveiled a GSH investment plan that envisions clearing of Kremikovtzis debts.
Zimbabwes Hwange Colliery loses export deal
Hwange Colliery Company has lost out on a coal export deal with Satnel Engineering of Kenya due to failure to supply an estimated 300 tonnes of coke under an agreement signed earlier this year, after Satnel shifted from its traditional suppliers from German due to high domestic demand.
Last year, net profit surged to N$264,5 billion from N$49,9 billion in 2004 but cash flow problems persisted owing to late payments by the company's major customers, notably the Zimbabwe Power Company and Ziscosteel, who owe HCC over $500 billion. One analyst remarked that "There is no reason why Hwange must suffer with such an international saleable commodity and could do very well with vigorous export strategy. The cash flow problems at the coal producer could be sorted out if exports were competitive."
Coal sales declined from 1.022 million tonnes in 2004 to 831 614 tonnes in 2005 owing to low production from its new underground mine. The coal miner is said to have suffered a major setback on its 3 Main underground mine after hitting an aquifer.
Ramunia expects huge earnings from current order book
Malaysian Ramunia Holdings Bhd's MD Mr Arshad Ahmad estimates that more than half of their RM600 million order book should translate into earnings this year as the first quarter saw Ramunia earning a RM1.2 million net profit against the RM36.4 million net losses a year ago. Revenue, meanwhile, more than tripled to RM32.7 million from RM9.8 million. "We expect to recognize about RM330 million in fiscal 2006," Mr Arshad told reporters at the company's annual general meeting in Kuala Lumpur.
Ramunia, which owns the approximately 36 hectare Teluk Ramunia Yard in Johor, competes against Malaysia Marine and Heavy Engineering Sdn Bhd and Sime SembCorp Engineering Sdn Bhd. Based on Ramunia's projects in hand to date, the company should account for about a third of the local market Mr Arshad said. At present, the group has bid for RM3.3 billion worth of jobs of which 15% are foreign-based.
Ramunia makes steel offshore platforms for oil and gas companies which include heavyweights like Petronas and Shell.
