May, 12 2006
China & India move up on polluting nations list
Greenhouse gas pollution from China and India rose steeply during the past decade. Mr Steen Jorgensen, World Bank's acting VP for sustainable development said "Greenhouse gas emissions from China and India are growing very rapidly at the moment, very much because of inefficient investments in energy, in power generation."
According to the World Banks Little Green Data Book released recently China increased carbon dioxide emissions by 33% between 1992 and 2002.India's emissions rose by 57% during the same period. He said the main reason emissions from China and India are rising so fast compared to the rest of the world, which had a 15% rise in carbon dioxide emissions between 1992 and 2002, was older & inefficient coal fired power plants in both countries. While cleaner coal fired plants are possible, India and China cannot afford to make the switch.
US remain the world's biggest polluters accounting for nearly 24% of all emissions of carbon dioxide globally, while EU contributing almost 10%.
Mr Jorgensen said "It's an unequal distribution of the people who pollute and the people who suffer from the pollution." Mr Jorgensen said those likely to suffer most from the consequences of these emissions, including the increasingly severe weather patterns associated with global climate change, are farmers in the poorest parts of the world. And still, people in the developed world used about 11 times as much energy per person as those in poor countries, Jorgensen said.
TATAs steel plant in Bangladesh to reduce HR import
Mr S Manzer Hussain the resident director of TATA Group in an interview with UNB assured that the proposed investment by TATA Group in steel sector will in no way hamper the interest of local manufacturers in Bangladesh. Mr Manzer Hussain said the TATA steel plant would produce hot rolled coil from iron ore as primary raw materials for the local cold rolling mills and tube industries.
Mr Manzer said that instead of impeding the growth of the local steel manufacturing industries, particularly those producing rebars, TATA would support the cold rollers, who solely depend on imports for HR Coils as their feed material today. There are eight to nine large cold rollers in Bangladesh including Rahim Steel, PHP, Abul Khair, Apollo, RM Steel, KYRC and NGS. The annual requirement of hot rolled coil by these industries is about 0.8 million tons a year and all the mills in the country import HR coils to produce their CR and galvanized products. Mr Manzer clarified that ''Actually, TATA steel plant in Bangladesh will substitute those imported raw materials saving huge foreign currency for Bangladesh.''
Bangladeshs domestic steel manufacturers, particularly the operators of furnaces and re rolling mills, expressed sharp reaction to the recently submitted revised proposal of TATA for setting up a steel plant with a production capacity of 2.4 million tons per annum. The local steel producers apprehend that TATAs steel plant would be a great threat to their units which include about 100 steel mills and 300 re rolling mills that presently produce about 2.0 million tons of rebars for the countrys construction segment.
Minister confirms that CIL not on privatization list
Minister of State for Coal Dr Dasari Narayana Rao informed that there is no move to privatize Coal India Limited, its subsidiary companies or the coal mines operated by them at present.
The Central Trade Unions have been expressing their apprehension against privatization of coal mining industry and have been opposing the Coal Mines (Nationalization) Amendment Bill, 2000 introduced in Rajya Sabha to amend the Coal Mines (Nationalization) Act, 1973 which seeks to allow an Indian company to undertake coal mining without the present restrictions of captive use.
IRCON to build rail link for Mittal Steel in Liberia
IRCON International has bagged $110 million rail link construction project for Mittal Steel in Liberia. The project involves rehabilitation of a 250 kilometers long railway line which had been abandoned 15 years ago and 350 wagons. The track will move about 15 million tonnes of iron ore per annum by the end of 2007.
Mittal Steel entered into an agreement with the Government of Liberia last year that gave the company access to approximately one billion tonnes of iron ore reserves. The company is now involved in developing the mines and related railway and port infrastructure around the mining area to start shipments by 2007.
41.79 million tonne shortfall in coal to be bridged by imports
Indian government proposes to meet the shortfall in coal through imports, which stands at 41.79 million tonnes. Minister of State for Coal Dr Dasari Narayana Rao said 432.39 million tonnes of coal would be supplied through domestic sources in 2006-07 that fell short by 41.79 million tonnes to meet demand forecast.
Dr Rao said the imports, to cover demand-supply gap, would be to the tune of 24.19 million tonnes of coking coal and 17.60 million tonnes of thermal coal for power, cement and other sectors.
L&T to decide on location for shipyard
Mr MV Kotwal senior EVP of Heavy Engineering Division of Larsen & Toubro said that L&T will invest about $ 110 million to set up a shipyard that can build huge vessels including large crude carriers.
He said the company was examining potential sites, both along the East and West coasts of the country that would be ideal for a shipyard.
High grade iron ore exports 12.38 million tonnes in 2005-06
Indian Commerce Minister Mr Kamal Nath said that high grade iron ore export during the first ten months of 2005-06 stood at 12.38 million tonnes.
Mr Nath added that the government had granted permission to 17 companies for export of high grade iron ore having over 64% iron content during 2005-06 for a total quantity of 7.18 million tonnes.
E Marketing accounts for 2.75 of CILs sale in 2005-06
Minister of State for Coal Dr Dasari Narayana Rao informed that out of overall provisional gross turnover of about Rs.34,000 crores of Coal India Limited during 2005-06, the provisional additional contribution of revenue on account of E-marketing was Rs.922.50 crores, representing 2.7% share.
Out of 332.524 million tonnes of coal dispatched by CIL during the year 2005-06, although the component of e-marketing was only 14.70 million tonnes, the average price of coal sold through e-marketing in was 23.1% over the floor price and 48.1% over the notified price.
Sical Logistics plans to raise $ 125 million
Sical Logistics Ltd will issue securities in the international market to raise $ 125 million, a company release said.
The shareholders in the extraordinary general meeting held on March 29 had approved the issue of global depository receipts, foreign currency convertible bonds or other securities in the international markets.
CVRD expects iron ore price hike of more than 25%
Mr Tito Martins, CVRD's ED of corporate affairs, during a press conference to discuss the company's first quarter earnings, said "When the 24.6% figure was proposed, we did not have the expectation that the market would be as strong as it is now and we can't dismiss the possibility that the price increase could be higher."
Mr Martins said that global demand for iron ore remains heated, driven by China. In the first quarter, Chinese demand for iron ore was 28% higher than the year ago quarter, according to Mr Martins. Mr Martin said "The numbers don't lie. The numbers have increased and the market is strong, we need to respect that."
Mr Martin said "Our proposal was correct, and the market is reflecting that."
Arcelor decides for legal action for auto steel patent against Mittal Steel
Arcelor has decided to take legal action in the United States against its unsolicited bidder Mittal Steel, alleging patent infringement relating to copying a type of steel for the auto industry. Arcelor's Usibor technology uses boron to impart more strength to auto grade steel for improved crashworthiness in auto body panels.
Arcelor spokesman Mr Jean Lasar said on Thursday "We decided on Wednesday afternoon to take Mittal Steel to court over patent infringement." However Mr Jean Lasar said that the suit was not connected to Arcelor's efforts to fend off Mittal Steel's takeover bid. He said "It's not related. It was decided to do it once we found out that there was an infringement by Mittal Steel in the US. It's quite rare but it happens once in a while."
A spokesman for Mittal Steel declined comment, saying that the company had not yet seen Arcelor's statement. But Forbes has reported that lawyers for Mittal Steel are thought to be treating the lawsuit as a frivolous action citing a Mittal Steel spokesman as saying "We believe that this lawsuit is without merit".
Russian coal exports up by 23.2% in Q1
Russias Federal Customs Service has said that the bituminous coal exports increased by 23.2% YOY in the first quarter of 2006 to 21.612 million tonnes. Exports to the CIS grew by 3.6% to 2.144 million tonnes and exports to the rest of the world were up by 25.8% to 19.468 million tonnes.
Coal exports in value rose by 29.7% YOY to $1.019 billion. Exports to the CIS fell 8.3% to $121 million but exports to the rest of the world rose 37.5% to $898.3 million.
Russian coal imports also grew by 14.1% YOY in the quarter to 6.746 million tonnes, with CIS accounting for 6.735 million tonnes. Coal imports in value rose by 0.3% to $93.2 million.
Russia is now the world's third biggest coal exporter after Australia and Indonesia, with approximately 12% of the world market share.
Mr DiMicco becomes Nucor chairman
Nucor Corp CEO Mr Dan DiMicco has assumed the additional role of company chairman. Mr DiMicco has been president, CEO and a member of the company's board since September 2000. He has been vice chairman since June 2001.
The board has also appointed Peter Browning, formerly non executive chairman, as its lead director. Mr Browning, former dean of the McColl Graduate School of Business at Queens University of Charlotte, has been a Nucor director since 1999 and non executive chairman since September 2000.
Charlotte based Nucor and affiliates are manufacturers of steel products, with operating facilities in 17 states in US.
AK Steel to increase carbon steel prices and zinc extras
AK Steel announced that it will increase spot market base prices for all carbon steel products by $30 per ton for new orders received for shipment on June 1, 2006 and later. AK Steel also said that it will raise prices for its zinc coating extras on new orders due to the continually escalating cost of zinc.
AK Steel previously raised prices of its zinc coating extras by 70 % effective April 1, 2006 and by 40%, effective June 1, 2006.
AK Steel said, but for a small amount of hot-rolled product, the company is sold out of all carbon steel products for the second quarter of 2006.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
Gold miners calls for dismantling Mittal Steel & Mac Steel JV
It is reported in a SA daily that gold miners Harmony and DRD Gold have submitted an amended application to the Competition Tribunal, in their complaint against Mittal Steel SA, which effectively calls for the dismantling of the Macsteel International JV between Mittal Steel and Macsteel. It is also reported that Mittal Steel SA would oppose the amendment, but without having confirmation from Mittal Steel's legal representatives.
The new remedy proposed offers an alternative to the initial request for an order from the tribunal directing Mittal Steel to levy factory gate prices on all its steel, whether it is sold locally or exported. This remedy remains intact, but an alternative proposal has now been added. This alternative would seek an order prohibiting Mittal Steel from exporting flat steel products and require it to divest its interests in Macsteel International, the vehicle through which Mittal Steel exports it excess local production.
It is also not yet clear what impact this development will have on the conclusion of the hearing, which was set to hear closing argument at the end of this month.
Cape Lambert to begin Pilbara iron ore drilling next month
Cape Lambert Iron Ore Ltd has announced plans for a reverse circulation drilling program at its iron ore project in the Pilbara region to commence next month. The drilling program, the first by the Company at the project, will comprise of around 25 holes for a total advance of approximately 4000 meters. The program will be carried out by Drillcorp Western Deephole.
The first drilling phase will provide the company with further data relating to grade and mineral processing characteristics of the known deposit, and will also validate the results of work undertaken by the previous tenement holder, Robe River Mining Pty Ltd. Prior to relinquishing the project Robe River had reported various hematite-enriched pods with iron grades up to 65% within the Cape Lambert deposit. The Company will carry out further investigations into these deposits as this type of ore might be suitable to direct shipping and create the opportunity to generate an early cash flow.
Cape Lambert said some drilling would also be undertaken over the newly discovered highly magnetic area to the west of the current 2.5 billion tonne JORC compliant resource.
This work will allow the Company to progress the Bankable Feasibility Study for the development and subsequent mining and export of iron ore from the project.
Arcelor to hold meeting for share buyback plan
Reuters has reported that Arcelor will announce on Friday it plans to convene an extraordinary shareholders meeting over a share buyback plan as well as other corporate governance issues citing a source close to the matter.
The source told Reuters on Thursday "It is certain. There will be a consultation with shareholders on the public share buyback offer."
Erdemir shares resume trading
Trading in the shares of Turkish steel maker Erdemir resumed on Thursday morning after its suspension a day earlier prompted by news of a court ruling suspending the company's privatization.
The Istanbul Stock Exchange said trading in the stock could resume as it had received a statement from Turkey's Competition Board on the issue.
IISI joins UNEPs sustainable buildings and construction initiative
The International Iron and Steel Institute have joined the United Nations Environment Program on Sustainable Building and Construction Initiative as a Founder Member. Through its involvement with UNEP, IISI will work in this important sector to further develop solutions that focus on sustainable construction solutions. In one specific area, IISI already has its own program, Living Steel, which is focused on meeting the growing demand for housing, with affordable sustainable solutions.
Mr Ian Christmas Secretary General of IISI stated Our decision to join this initiative is based on steels central role as a sustainable building material in the 21st Century. IISI members are committed to helping the construction industry develop sustainable solutions. IISI is a world leader in the use of life-cycle assessment techniques for evaluating environmental impacts.
UNEP has called for the addressing of sustainability in building and construction as a pre requisite for achieving the United Nations Millennium Development Goals. UNEP decided to launch the Sustainable Buildings and Construction Initiative as a neutral worldwide platform, in partnership with international leading companies and other stakeholders in the building and construction sectors. The initiative aims at addressing those issues by establishing global baselines for sustainable development in the sector, developing tools and strategies to enable companies to meet those baselines, implementing pilot projects to showcase such practices, promoting and supporting adoption of those tools and strategies by governments and others influencing the conditions for the building and construction sector.
MUFG increases equity stake in Nippon Steel
Japan Metal has reported that Mitsubishi UFJ Financial Group Inc has spent some 15 billion yen to increase its equity stake in Nippon Steel Corp from 1.5% to 2% at the request of the steelmaker.
Nippon Steel has asked the bank holding company to become a stable shareholder to help prevent any hostile takeover bids, the sources said. Among other major Japanese banking groups, Mizuho Financial Group Inc has a 4.6% stake in the largest Japanese steelmaker.
Thai Nakornthai Strip posts heavy losses in Q1
Nakornthai Strip Mill Plc, a thin slab HRC producer, has announced its reviewed results for the first quarter ended 31st March 2006. The net sales in Q1 of 2006 is Baht 3,365 million down by 34% as against Baht 5,136 million in Q1 of 2005. NSM has reported net loss of Baht 2,220 million bin Q1 of 2006 as against profit of Baht 470 million in Q1 of 2005. EBITDA for the first three months of 2006 was negative Baht 1,902 million, a decrease of over threefold from the same period in 2005. The EBITDA was inclusive of the adjustment provision for the DRI facility devaluation amounting to Baht 1,744 million.
NSM reported a 34% decrease in net sales for the first three-month period of 2006 to Baht 3,365 million compared to the same period in 2005, due to sluggish demand for hot-rolled products. Production reached only 159,055 tonnes compared to last years 223,207 tonnes with a utilization rate of only 53% based on its plants rated capacity of 1.2 million tonnes per year.
Demand for hot rolled steel for the first three months of 2006 was 1.3 million tonnes compared with 1.4 million tonnes in 2005 a 7%YOY drop. Thailands hot-rolled steel production in the first three months of 2006 was 0.93 million tonnes compared with 0.99 million tonnes in 2005 a 6% decrease. Meanwhile, imports of hot rolled steel products reached 0.44 million tonnes in the three months ended 31st March 2006, a 34% drop compared to the 0.67 million tonnes in the prior year.
West Hawk forms coal JV with Lu'An Mining Group
West Hawk Development Corp announced that it has entered into a MoU with Lu'An Mining Group Corporation of Shanxi Province China. The JV will focus on the development of a coal gasification project in the Shanxi Province of the People's Republic of China. The companies will review certain coal resources owned by the Shanxi Lu'An Mining Group to determine the best resources available for a conventional IGCC electrical power plant and a CTL plant. The JV will also explore the possibility of underground coal gasification.
Mr Chris Verrico CEO of West Hawk said "This opportunity brings new dimension to the Company's clean coal gasification to energy business model."
Shanxi Lu'An Mining Group Corporation, Ltd. is one of the premier enterprises of Shanxi Province and one of the top 500 largest enterprises in China. Its major business includes coal, power generation, coking facilities, and chemical production. The company owns geological reserves totaling 9 billion metric tons of coal and has an annual coal production capacity of 30 million metric tons. Currently, it produces 17 high quality products used by more than 500 customers in China and exported to Japan, Korea and Hong Kong etc.
West Hawk Development Corp is an energy Company that is currently exploring and developing assets for the delivery of clean energy through gasification technologies. The company is currently defining coal resources in Western and Northern Canada.
MMK establishes Asian subsidiary to manage PSMC
Magnitogorsk Metal Integrated Works has established a subsidiary in the Republic of Mauritius MМК Holdings (Asia) Ltd.
According to MMK press service, the new company is established to execute the deal on the purchase of Pakistan Steel Mills Corporation in accordance with the arrangements on the management of this asset between MMK and its consortium partners Al-Tuwairqi and Arif Habib Group.
Indonesian PTBA to sell 52 million tons of coal in 2010
State owned coal mining company PT Tambang Batubara Bukit Asam targets to sell 52 million tons of thermal coal in 2010. PTBA hopes to increase production after the completion of its two power plants with a total capacity of 2,600MW and railway to facilitate coal transport in South Sumatra.
Mr AC Purba director of PTBA said that its coal sales totaled 9.67 million tons with income at Rp3 trillion during 2005 and the company is looking for a 20% increase in sales and income in 2006.
The company plans to build a 200MW coal fired power plant at a cost of around $241 million in Banjarsari expected to be operational in 2009.The second coal fired power plant will be built in Bangko Tengah in the regency of Muara Enim with a capacity of 4x600 MW to be completed in September 2010.
Stelco posts loss in Q1 on lower prices & reorganization
Stelco Inc, which emerged from bankruptcy protection less than two months ago, reported a first-quarter loss hurt by charges for discontinued operations, reorganization costs and lower spot market prices. The Canadian steelmaker said it lost C$122 million for the quarter ended March 31 as compared with a profit of C$49 million in the year-before period. Stelco said that its revenue during the quarter dropped by 7% to C$674 million from C$728 million YOY as it renewed customer contracts at lower prices. Shipments during the quarter rose by 7% to 974,000 net tons from 907,000 net tons during the first quarter of last year.
Stelco said the results include a C$43 million after tax charge for discontinued operations, related to the sale of its mini mill and its manufactured products units, which were completed in the first quarter. Reorganization costs in both the first quarter of 2006 and of 2005 amounted to C$21 million on a pretax basis, compared with C$29 million in the fourth quarter of 2005. Revenue was also hampered by a lower value added mix due to a fourth quarter outage at its Lake Erie Steel hot strip mill and the rise in the Canadian dollar.
Mr Rodney Mott, Stelco's president and CEO said "My focus is to return the newly refinanced Stelco to profitability. My initial emphasis will be on lowering our costs and improving our productivity to ensure Stelco's long-term viability and future success. Steps taken already include a focus on our primary business of making high-quality steel for our customers, and a move toward a more effective management structure."
Mr Morales pledges to nationalize mining industry in Bolivia
Mr Evo Morales, Bolivia's leftwing president, has vowed to nationalize the country's mining industry, overruling senior members of his cabinet in a move that could affect foreign investors such as Coeur d'Alene and Apex Silver of the US.
"Our mineral resources, our forests and our water resources should be returned to the hands of Bolivians" Mr Morales told.
Norilsk Nickel sets up subsidiary in Krasnoyarsk
MMC Norilsk Nickel has set up a subsidiary, Kingashskaya Mining Company, in Russia's Krasnoyarsk territory for exploration purposes.
The Russian Natural Resources Ministry plans this year to auction the rights to the southeastern section of the Kingashskaya area, which holds probable P3 resources of 1 million tonnes of nickel.
Norilsk is the world's biggest nickel producer.
Ukraine may retaliate on AD duty on its pipes in EU
It is reported that the Ukrainian authorities are taking active steps to protect Ukrainian pipe producers in the view of the possible restrictions on Ukrainian pipes imports to the European Union.
Some analyst said Ukraine may impose customs duty on some European goods, if on May 11 the European Commission will introduce duties on imports of seamless pipes from Ukraine.
Mr Issroff resigns from Xstrata board
Global miner Xstrata has announced resignation of Mr David Issroff as a director of the company with effect from May 10. Mr Issroff was a non executive director and was appointed to the board on the nomination of Glencore International as permitted under the terms of a relationship agreement between the company and Glencore.
Mr Issroff's resignation follows his decision to relocate to the United States for personal reasons. Japan Electric Furnaces Post Favorable Results for F2005.
Glencore currently has a 37.61% joint interest in the ordinary share capital of the company.
Corus confirms sale Lusosider to CSN
Corus Group plc has confirmed that through its subsidiary Corus Staal BV, it has signed a Sale and Purchase Agreement with Companhia Siderurgica Nacional for the 25 million sale of its 50% share in Lusosider Projectos Siderurgicos SA, a flat steel Portuguese company, producer of pickled hot rolled, cold rolled, hot dip galvanized and tin plate. The completion of the sale is subject to regulatory clearance by the Portuguese Competition Authority, which is expected within 45 days of filing.
Lusosider is a 50:50 JV between Corus and CSN.
Western Canadian appoints new director
Western Canadian Coal Corp has announced the addition of Mr John Robert Brodie to its board of directors effective May 10, 2006. Mr. Brodie served as a partner at KPMG until 2003 and held many senior management positions with KPMG's Vancouver and Ottawa offices. He has 36 years experience in management within the public accounting profession.
Mr John Byrne chairman said "I am delighted to welcome John to our Board. Not only does he bring us additional accounting and financial expertise, but his knowledge of the mining industry will prove immensely helpful in managing the growth of the Company. We are also pleased that he has agreed to chair the Company's audit committee. Our board and management team look forward to working closely with John and are confident that his ability and experience will assist the Company in building shareholder value."
NS Group names Mr Donnelly as chairman
NS Group Inc, a maker of tubular products used in oil and gas pipelines, has named Mr Patrick Donnelly as chairman. He succeeds Mr Clifford R Borland, who will become chairman emeritus, and remain a director of the company.
Mr Donnelly also was named to the company's executive committee. He has served as a director since 1981.
