May, 15 2006
SS Blue Ladys entry into India barred temporarily
Gujarat Pollution Control Board has on Sunday decided to bar French cruise liner SS Blue Lady from entering Indian waters after Supreme Court's directive on Thursday that the ship's entry into Alang ship breaking yard and issues relating to hazardous toxic wastes be dealt with by a court-appointed committee of technical experts until the committee decides on the matter.
Environmentalist Mr Gopal Krishna had sought for directions to stop the ship from entering India's territorial waters from Supreme Court and in response to his application, a Bench comprising of Justice Arijit Pasayat and Justice Markanday Katju had issued notices to the Centre and Gujarat Maritime Board. The court had also referred the application to a committee of technical experts.
SS Blue Lady, which earlier sailed as SS France and SS Norway is believed to be carrying three times the toxic wastes of Clemenceau. The cruise liner is one of the top 50 toxic ships in the world and carries nearly 900 tonnes of asbestos, along with other globally banned toxic materials and a cancer causing chemical polychlorinate biphenyis.
Jharkhand to support steel units by pressurizing miners
It is reported that Jharkhand government is trying to find a way of supporting units with iron ore supply, which have signed MoU and already put up plants, but have not been allotted iron ore mining leases.
According to sources, the state government, by exercising the pre emption clause, can it or through the Jharkhand State Mineral Development Corporation purchase surplus ore of any mining company at market prices and distribute it to others. Industry sources, however, are questioning the governments wisdom, saying that it is the market forces that should have the final say, rather than the state forcing anybody to sell ore.
The six aggrieved parties, including Adhunik Alloys & Power, Kohinoor Steel, Neelanchal and old unit of Bihar Sponge met senior officials of the state mining department at Ranchi recently and conveyed the amount of iron ore that would be needed by them. The department is now planning to sort out the issue by meeting the officials of mining companies.
SAIL may use CIL manpower for ISPs coal mines
It is reported that Steel Authority of India Ltd may use excess manpower available with Coal India Ltd for increasing the productivity from its three coalmines, which have come under SAIL's fold following the merger of IISCO.
A joint committee with officials from SAIL and CIL may be set up to prepare a detailed plan and after taking the labor organizations into confidence a presentation would be made to the Ministries of Steel and Coal Ministry of Steel and the Ministry of Coal. Though initial talks have started, sources said it may take at least one year before the plans are fully prepared because it involves a lot of complex issues, mostly related to the labor laws.
IISCO had its captive collieries at Chasnalla and Jitpur for supply of metallurgical coke and its third captive colliery at Ramnagore supplies non coking coal to Burnpur. Chasnalla also has a pithead coal washery and is connected to Burnpur by a 54 km long aerial ropeway.
PFC to set up shell company for transmission projects
The government has now mandated Power Finance Corporation to form a shell company for transmission projects on the lines similar to five shell companies formed by PFC for the 4,000MW each coal fired power generation projects.
The projects that the proposed company would take up may or may not relate to the transmission network of ultra mega power projects, sources said.
Railways rebate on freight in monsoon
As the demand for freight transportation dips from 1st July to 31st October, Indian Railways have proposed a freight rebate of 15% for incremental freight revenues of over Rs 5 crore a month and 10% if the incremental earning is less than Rs 5 crore. This rebate will be applicable for all commodities except coal and minerals. Railways will also give a discount of 30% during the non peak season and 20% during peak season for all items loaded in covered wagons, but in case of open wagons, the discount will not be available on coal, coke iron ore for export.
To encourage transportation of iron and steel by rail, if over 90% of the production of any steel factory is transported by rail, a discount of 1% in freight will be given. If its from 50% to 90% of the total production, then half a percent discount will be given but only on the transportation of finished products not on raw materials.
Orissa to set up 2000MW thermal plant with MMTC
Mr Suryanarayan Patra Energy minister of Orissa announced plans to set up a 2000MW thermal power plant in the state. The state owned Orissa Hydro Power Corporation and MMTC would jointly set up the project, the site for which was yet to be decided. He told media that "Till now the entire project is in a nebulous stage."
As per the plan under discussion, the OHPC and the government owned trading company MMTC would have 51 and 49 per cent equity in the project. Initially, two units of 500 MW each were planned with an investment of about Rs 4000 crore. Both the state government and the MMTC would have to provide Rs 600 crore each to get the project going.
Commerce minister to stop profit run for cement companies
Union Commerce Minister Mr Kamal Nath met the members of the Cement Association on Friday, and asked them to address the issue of sky rocketing cement prices by taking effective steps saying that the government will not allow excessive profiteering, as it is impacting other aspects of the economy.
He said that the government has many options to address the issue, but it will be prudent to let the industry take corrective steps on its own. He said that prices should move up in tandem with the increase in the input cost.
Poltava Ore to establish own steel plants in Ukraine & Hungary
Ukraines largest producer of iron ore, Poltava Ore Mining, is planning to establish two steel plants, one each in Ukraine and Hungary, to utilize own iron ore for steel making. Without a steel mill of its own, Poltava has been exporting most of its iron ore.
Mr Dave Webster CEO of Vorskla Steel, a Swiss registered company set up to develop the projects, said "The investment numbers are still being finalized, but the investment in Hungary will be in the order of 300 million euros. The Ukrainian facility will be significantly larger, its investment costs will be in the order of $1 billion." He added "This will be one of the largest investments in Ukraines steel industry and will be the first brand new steel plant recently built in Ukraine using the latest technology."
Poltava Ore Mining is majority controlled by 32 year old Ukrainian tycoon and politician Mr Kostyantin Zhevago.
Lazard Bank finding to influence Belgian decision
The takeover battle between Mittal Steel & Arcelor is expected to be influenced when a study commissioned by the Belgian government comes out. The findings may influence Belgium's southern Walloon region, which holds a 2.4% stake in Arcelor.
Belgium has so far taken a neutral stance deferring any comment until after the report by investment bank Lazard.
Arcelor Brasil Q1 profit down by 79%
The Brazilian subsidiary of Arcelor recorded a net profit of 321 million reais ($150 million) in the first quarter of 2006, down by 79% from 1.52 billion reais YOY. Revenue in Q1 of 2006 dipped by 8% to reach 3.29 billion reais as compared to 3.57 billion reais in Q1 of 2005. EBITDA fell by 40% to 960mn reais from 1.61bn reais in 1Q05. Consolidated sales in Q1 increased by 19% to 2.54 million tonnes from 2.13 million tonnes in Q1 of 2005, while crude steel production increased by 5% to 2.5 million tonnes YOY,
Arcelor Brasil said The profit decrease reflects weaker cash generation and an increase of expenditures due to taxes. Results also reflect lower prices mostly in flat steel on international markets and the real's appreciation against the US dollar.
Inco announces sweetened bid for Falconbridge
Inco Ltd has sweetened its friendly cash and share bid for rival Falconbridge Ltd to more than $19 billion and thrown a big financial roadblock in the way of any rival bids. Inco said it had agreed to raise its bid to acquire all of Falconbridge's outstanding common shares by $5 to $51.17 a share, sweetening an earlier bid announced last year by about $1.9 billion. With 372.3 million shares of Falconbridge outstanding, the new bid values the entire nickel and copper miner at just over $19 billion.
In addition, the two companies agreed that Falconbridge would pay Inco a penalty fee of up to $450 million if the friendly deal is not completed. That measure would make it prohibitively expensive for any rival bidder to mount a successful counter offer and trigger the penalty provision.
Mr Scott Hand chairman and CEO of Inco said "The enhanced terms reflect the change in metal market dynamics and the additional value created in Falconbridge because of higher metal prices."
Rumors have been circulating for months that Xstrata, which already owns 20% of Falconbridge, is planning to mount its own hostile offer to acquire the rest of the company.
Mittal Steel SA headline earning dip by 57% in Q1 f 2006
First quarter headline earnings Mittal Steel SA fell by 57% YOY. Headline earnings per share fell to 153 cents as against 354 cents in the Q1 of 2005. Mittal SA's headline earnings reached 684 million rand for the quarter, with headlines EPS, which excludes non trading, capital and some extraordinary items, at 195 cents 21% lower than the last quarter of 2005.
Export sales volume declined by 13% compared with the previous quarter and 15% from the year ago period. Domestic sales rose by 18% from the previous quarter and 19% from a year ago.
Mittal Steel SA said in a statement "The main reasons for the substantial decline from last year were lower sales prices, an increase in costs, lower export volumes and voluntary retrenchment packages provided for during the past quarter. This was partially offset by higher local sales volumes."
Manganese demand to remain high Eramet
Demand for manganese is expected to remain high in 2006 on the back of continued growth in global production of carbon steel, French producer Eramet said adding that manganese alloys prices continued to recover gradually from last year's lows.
Production of manganese ore and sinter by Eramet's Gabonese subsidiary Comilog remained stable in the first quarter at 647,000 tonnes as the production was limited during the quarter by work to upgrade the ore beneficiation plant carried out as part of the program to increase capacity.
Comilog produced 2.859 million tonnes of ore and sinter in 2005. Eramet aims to increase capacity to 3 million tonnes in 2006, with a further increase to 3.5 million tonnes planned by 2008.
Eramet said that sales prices for manganese ore are still substantially lower than at the beginning of 2005 and that ore prices were expected to be down overall this year.
Caparo acquires AP Braking in UK
Lord Swraj Paul's Caparo Group has acquired UK's leading manufacturer of specialist braking systems for small and medium vehicles. AP Braking, formally AP Hydraulics, of Leamington Spa Warwickshire, will remain at its current premises and operate as a subsidiary of the Caparo Vehicle Products grouping. The company will be known as Caparo AP Braking Ltd.
A P Braking has a turnover of 15 million pounds ($28.3 million) and employs 170 employees. The principal customers are Jaguar, Land Rover, LDV, LTI, Morgan and many others.
Mr Angad Paul CEO of Caparo said "We are building in Caparo Vehicle Products, a business which can serve worldwide vehicle manufacturers giving them the best design and competitive products. The acquisition is part of that strategy."
Caparo is a fast growing 1.25 billion dollars company with business interests in steel and automotive components in Britain, India, Spain, the US and Canada. The group runs seven plants in India with plans to build ten more this year catering to the needs of carmakers.
Arcelor may stick to share buyback plan
Arcelor would proceed with a Euro 5 billion share buyback, its latest weapon to fend off a takeover by Mittal Steel.
Arcelor deputy CEO Mr Michel Wurth said in an interview on Luxembourg radio that the buyback was an answer to the Mittal Steels offer because it allows the board to establish the value of our shares and offer shareholders that price.
Chinas Three Gorges to save 50 million tons of coal annually
Chinas Three Gorges Project, the world's largest hydropower project, will help China reduce consumption of 50 million tons of coal per year, thus benefiting the environment in China and its neighboring countries. By saving a large amount of coal, China will reduce the discharge of 100 million tons of carbon dioxide, 2 million tons of sulfur dioxide and 10,000 tons of carbonic oxide, greatly alleviating air pollution in China.
Launched in 1993, the Three Gorges Project, including the 185-m-high dam and 26 generators on both banks of the Yangtze, is being built in three phases on the middle reaches of the Yangtze River, China's longest. When the entire project is completed in 2009, it will be able to generate 84.7 billion KWH of electricity annually.
Bayou Steel stockholder approve merger agreement
Bayou Steel Corporation announced that its stockholders voted at a special meeting to adopt the previously announced merger agreement to be acquired by an entity owned by funds over which Black Diamond Capital Management LLC acts as an investment manager. Subject to the satisfactory completion of applicable regulatory reviews and customary closing conditions, the transaction is expected to close in late May or early June of 2006.
Mr Jerry Pitts president and CEO of Bayou Steel said We at Bayou Steel are very pleased that our stockholders have overwhelmingly approved this transaction with Black Diamond and look forward to closing the acquisition as soon as possible."
Bayou Steel Corporation manufactures light structural and merchant bar products in LaPlace Louisiana and Harriman Tennessee. The Company also operates stocking locations along the inland waterway system near Pittsburgh, Chicago and Tulsa.
Black Diamond Capital Management LLC is an alternative asset management firm with in excess of $8 billion under management in a combination of private equity, hedge funds and structured vehicles. It was founded in 1995 by its principals Mr James Zenni and Mr Stephen Deckoff.
Arcelor's Acesita profit dip by 28.9% in Q1 of 2006
Arcelor Brazilian stainless steel unit Acesita has announced a net profit of 126 million reals ($60 million) in the first quarter of 2006, down by 28.9% from 177 million reals in Q1 of 2005. Sales totaled 696 million reals, a 23.6% decline from 912 million reals in the same period of last year.
Mr Jean-Philippe Andre Demael chairman said that the second quarter is expected to be better than the first, due to strong demand and an increase in stocks. However, prospects for the second half are uncertain due to an expected decline in the price of nickel and the challenge' posed by the sharp rise in the real.
Acesita also plans to invest 95 million reals ($45 million) in order to triple its production capacity for electrolytic steels to 300,000 tonnes a year by next year.
NTMKs net profit dips by 35% in Q1 of 2005
Nizhny Tagil Iron and Steel Works has reported that its net profit dropped by 35.11% to Rubles 2.733 billion ($102.3 million) in Q1 of 2006 as compared to Q1 2005 under RAS. The revenue decreased by 23.8% to Rubles 14.821 billion ($555 million) as against Rubles 19.452 billion in Q1 of 2005.
The gross profit fell by 26% to Ruble 4.636 billion ($173.6 million) against Ruble6.263 billion. The companys operating profit sank by 29.08% to Ruble 3.920 billion ($146.8 million) against Ruble 5.527 billion.
Kazak BAK opts for new technology at Bogatyr coal mine
Kazakhstan's biggest coal producer Bogatyr Access Komyr has undertaken conversion of its Bogatyr open pit no 6 to truck conveyor mining technology with coal blending. BAK's technical economic council approved the feasibility study for this in March. BAK has been using this technology at the Severny mine since August 2005.
As the modernization will take place without reducing current production there will be a gradual transition from existing rail transport to truck & rail and then to truck & conveyor. The project will be implemented by 2025.Germany's Willibald Shtrek and the Karagandagiproshakht institute has estimated the project cost at 524 million euros.
BAK shipped 35.3 million tonnes of coal to customers in 2005, 1.6% less than a year earlier. The company plans to mine and sell 35 million tonnes of coal in 2006, including 23 million tonnes of blended coal.
GlobeStar acquires additional nickel laterite belt in Dominican Republic
GlobeStar Mining Corporation announced that it has executed agreements for up to 100% control of a series of exploration concessions covering 198 square kilometers along the Dominican Republic's Falcondo Nickel Laterite Belt, adjacent to GlobeStar's 100% owned C1 nickel laterite mining concession. The C1 concession is immediately adjacent to Falconbridge's Falcondo nickel laterite mine, and 8 kilometers from the Falcondo smelter.
GlobeStar has agreed with Everton Resources Inc to acquire 100% ownership of the Corozal and Cercadillo nickel laterite concessions and has also been granted an option from Energold Drilling Corp to acquire up to 100% on another four nickel laterite concessions. With the completion of these agreements, GlobeStar now controls virtually the entire Dominican nickel laterite belt outside of the Falconbridge mining concessions.
Evrazruda completes overhaul of Abkan iron ore operations
Evrazruda has completed the complex overhaul of the core equipment of the mine and beneficiation mill of its Abakan operations in the Republic of Khakassia.
The overhaul included the build up welding of the head frame drums on the skip lifter of Glavniy shaft. Besides, planting beams were replaced on the skip lift and a standby pumping manifold of the length of 185 meters was laid. In addition, a jaw crusher and radial wagon tripper of the underground crushing complex were repaired.
Zaporizhstal increases output by 8.3% during January to April
Zaporizhstal has increased finished roll output by an estimated 8.3% YOY during January to April period, to 1.2 million tonnes.
TopSouth Africa to host international coal conference
Mining Weekly has reported that The Pittsburgh International Coal Conference will be held in Sandton next year during September 10 to 14 next year in parallel with the biennial South Africa Coal Processing Conference and Exhibition. The conference will cover the entire spectrum of coal, from geological exploration through to the end user and export. It will be co hosted by the South African Coal Processing Society and will be split into two concurrent sessions.
It is envisaged that all major coal-producing countries will be represented. Delegates will have the opportunity to join the planned technical tours to Sasol Secunda, Witbank and Ellisras to gain insight into the local coal industry.
Mr Chris Reinecke head of the SA organizing committee for the Pittsburgh conference, says the coal industry is currently enjoying sustained high prices for its products. He said Coal is the powerhouse that drives the resources industry. The gold, diamond, base metal and ferrometal sectors all require the coal industry to perform in order to supply sufficient power for them to function effectively.
The SACPS held its first biennial coal-processing conference and expo in Secunda last year and attracted 200 delegates.
National Coal reports Q1 results
National Coal Corp has reported that first quarter 2006 revenue increased by 59% to $20 million from $12.6 million in the prior year period. Tons of coal shipped in the first quarter increased by 65% to a record 372,109 tons up from 366,450 tons during Q4 of 2005 and from 226,218 tons in the prior year period. Tons produced, including purchased coal from third party vendors, increased 96% to 424,844 tons, up from 362,798 reported last quarter and 217,063 in first quarter 2005. Net loss for the period increased to $7.7 million from $2.2 million in the first quarter of 2005.
Mr Jon Nix CEO said "The increased net loss is primarily attributable to an accident that occurred with one of our highwall miners in March and all of the consequences of that accident, including significant repair costs and loss of production. Accidents of this nature are a part of the coal mining industry and, in our case, we're fortunate that its effects are temporary. We are executing an aggressive business plan and are still very much on point with regard to our long-term goals of sales growth and cost containment."
National Coal Corporation is engaged in coal mining in East Tennessee and Southeastern Kentucky. Currently, National Coal produces coal from two mines in Tennessee and four mines in Kentucky and sells steam coal to electric utilities in the Southeastern United States.
Ukraines economy to grow by 4.2% in 2007
Ukraines Economy Minister Mr Arseniy Yatseniuk told media that Ukraine's GDP will grow by 4.2% in 2007,
Mr Yatseniuk said "Our basic forecast foresees 4.2% GDP growth, but there are both pessimistic and optimistic forecasts. And a number of factors may influence it. The key factors are the energy prices and situation on the foreign markets."
