May, 17 2006
India plans long term iron ore export pact with China
Indian government has decided to enter into long term ore export contracts with China besides renewing these contracts with Japan and Korea. Though China is Indias largest importer of iron ore with imports of 59 million tonne in 2004-05 and about 68 million tonnes during 2005-06, most of the supplies were done through spot deals.
Union steel minister Mr Ram Vilas Paswan, on the sidelines of the Steel Outlook conference in New Delhi said We are thinking of entering into a minimum 5 year export agreement with China in view of the growing demand there, after ascertaining their need. He added that negotiations with Japanese companies were also on and a high level delegation from India would soon visit the country to sign the long term ore supply agreement.
Mr Paswan had earlier said any export of iron ore would be undertaken only after meeting all the requirements of the domestic industry. In fact the Cabinet had earlier decided to reduce quantum of high iron content ore exports under long term arrangement to meet the requirements of domestic sponge iron units.
TATA Steel to buy stake in 2nd overseas coal mine
TATA Steel is likely to complete acquisition of a minority stake in an overseas coal mine by the end of the current calendar year. If the deal goes through, it would be the second overseas coal mine acquisition for the TATA Steel.
Mr AD Baijal VP of raw materials said We are looking to pick up a minority stake in a new development with large off take. Mr Baijal added that the company is currently looking at Australia in particular for the acquisition, although buyouts in other countries are not ruled out.
TATA Steel bought a 5% interest in Carborough Downs Coal Project in Queensland, Australia in 2005-06 and has an off take agreement in lieu of its stake in the project. Mr Baijal said production from the Carborough mine would commence by March quarter. Initially, the project will give TATA Steel about 100,000 tonne of coal which could go up to 0.7 million tonne once fully ramped up.
Mr Baijal said TATA Steel is planning to contain imported coal requirements at 30% to 35% of its total annual demand although in absolute terms it may consume more imported coal as it expands steel making capacity. Its current annual demand for coking coal is at 4.5 million tonne to 5 million tonne, a third of which is imported reduced from earlier levels of 40% to 45%.
Indian steel industry on strong footing
Union steel minister Mr Ram Vilas Paswan while inaugurating Steel Outlook conference in New Delhi said that growing domestic demands and exports have resulted in cent per cent capacity utilization in the steel sector, despite raw material and infrastructural constraints adding that there is a considerable scope for increasing its production with the rising prospects in the steel sector both within the country and globally.
Mr Paswan said that the Government of India will continue to play the role of proactive facilitator. The recently announced National Steel Policy lays down the broad roadmap for the growth of the domestic steel sector. With the modest target of producing about 110 million tonnes of steel by 2020, the strategic goal is to have a modern and efficient steel industry of world standard, catering to diversified demand for steel. The focus of the policy is to achieve global competitiveness not only in terms of the cost, quality and product but also in terms of efficiency and productivity.
POSCO gets rail transportation clearance but without mine leases
The Railway Ministry has given the rail transportation clearance for POSCO's steel project, which plans to transport 35 million tonnes of iron ore from Keonjhar area in Orissa, 13 million tonnes of limestone from Satna in Madhya Pradesh and 13 million tonnes of dolomite from Birmitrapur all by rail to Paradeep. RITES is preparing three phase detailed feasibility report and the first phase, based on POSCO's plan to build 4 million tonnes capacity, will be ready either by early next month.
As POSCO is yet to sign the mining lease agreement with the Orissa Government, it is presumed that POSCO will get the mining rights in the Keonjhar area and will use the Daitari-Banspani line being constructed by Rail Vikas Nigam Ltd, as well as Haridaspur-Paradip line being built by an SPV, to transport the ore to be mined. RITES study is also being undertaken with the assumption that POSCO will have its own captive port at Paradip, though the port issue has not yet been resolved.
Punj Lloyd secures GAILs Dahej Uran pipeline order
Punj Lloyd Ltd has informed that the Company has been granted a Fax of Acceptance by Gas Authority of India Ltd in respect of laying of pipeline and Associated facilities for spread 1 of Dahej Uran Pipeline Project for a consideration of Rs 1382.90 million. This value is inclusive of all applicable, taxes, duties, levies etc.
TopCourt directs Orissa to abide by MoU with Bhushan Group
It is reported that Orissa High court has stayed the cancellation of an MoU signed between the Bhushan Group and the state government for setting up an integrated steel plant in the state and has also ordered status quo on the application for iron ore prospecting licenses filed by the Bhushan Group since the signing of the MoU four years ago.
Bhushan Group of Industries had signed a MoU with the Orissa government on May 15, 2002 for setting up a 2.8 million tonne steel plant at Telhkoi under Rengali Tehsil in Sambalpur district and had submitted three iron ore prospecting licenses. After the MoU was signed in May 2002, the Bhushan Group was reorganized following a family settlement.
Subsequently Orissa government decided to deal with Bhushan Ltd and Bhushan Steel & Strips Ltd for signing of separate agreements for the purpose of acquiring land, allotting mines and other facilities for the proposed integrated steel plant at Telhkoi. The Orissa government said that as Bhushan Group of Industries with whom the MoU was signed has ceased to exist the MoU signed with them has demised and lost force.
Nagarjuna Construction bags order in Muscat
Nagarjuna Construction Company Ltd has informed that the Company has secured new orders aggregating Rs 3620 million.
These orders include a Pipeline Project, Sohar Water Network, Phase-I, valued at Rs 1160 million awarded to the Company by the Muscat Municipality in Sultanate of Oman. This is the first international project bagged by the company.
The other orders totaling to Rs 2460 million have been procured from various agencies in India.
Mittal Steels offer prospectus for Arcelor approved by 3 financial regulators in Europe
Mittal Steel announced that following coordination among the European regulators, the information document relating to its offer for Arcelor shares and convertible bonds was approved by the Luxembourg Commission de Surveillance du Secteur Financier, the Belgian Commission Bancaire, Financie et des Assurances and the French Autoritdes marches financiers. The information document is expected to be approved by the Spanish Comisi Nacional del Mercado de Valores in the near future. The regulators said the offer document will also contain a formal response giving Arcelor management's views on the bid.
The Dutch Autoriteit Financie Markten also approved the share listing prospectus prepared for the issuance of new Mittal Steel class A common shares in connection with the Offer and for the admission of such shares to trading on Euronext Amsterdam, Euronext Brussels, Euronext Paris, the Luxembourg Stock Exchange and the Spanish Stock Exchanges. This share listing prospectus is passported into Luxembourg, Belgium, France and Spain under EU prospectus legislation.
The acceptance period for the Offer in Luxembourg, Belgium and France will start on the date on which the information document will be published ie on 18 May 2006 except in Spain, where the acceptance period will commence on the date indicated in the Spanish version of the information document. The acceptance period for the Offer in the United States will start on the date that the registration statement on Form F-4 currently under review by the SEC is declared effective.
Mr LN Mittal chairman and CEO said We are delighted to have today received approval from most of the securities regulators on our offer documentation for our tender offer on Arcelor. Now shareholders will have the opportunity to decide for themselves on the value and merits of our proposal. We remain excited about the prospects of our offer, which is based on very sound industrial logic and provides tremendous value creation potential. We believe that stakeholders in the steel industry appreciate the need for further consolidation and recognize the benefits it can bring in creating a more sustainable operating environment. The Mittal-Arcelor combination would define the model of the future, creating a financially strong, balanced, global market leader, ideally positioned to exploit growth opportunities in a consolidating industry.
The formal launch of the bid will finally give Arcelor shareholders the chance to decide the company's fate, four months after Mittal launched its surprise takeover effort.
CISA rejects 19% iron ore price rise as benchmark
China's steel industry, the largest importer of iron ore, has indicated that it would not accept a price increase as much as agreed between CVRD and ThyssenKrupp. Although China Iron and Steel Association said it has not been officially told of the agreement, but Mr Qi Xiangdong of CISA told Reuters that the steel sector in China could not agree to such a price increase indicating Chinese refusal to accept the CVRD-ThyssenKrupp deal as a benchmark.
Analysts said they expected China to continue negotiating with miners, rather than swiftly to accept a similar deal. "The deal between Brazil and Germany certainly puts pressure on the Chinese negotiators but it does not necessarily mean that China will accept a 19% increase" said Mr Zhou Xizeng, steel analyst of Haitong Securities.
The Chinese Ministry of Commerce and Baosteel, the largest steelmaker, which has been negotiating on behalf of the industry, refused to comment on Tuesday.
China's steelmakers had initially called for a reduction in the price and the government at one stage threatened to block imports of iron ore if prices rose too high. However, Chinese officials later indicated they would accept an increase of about 10%.
Supplies for NEGP is Severstals first priority
Mr Alexei Mordashov CEO of Russia's largest steel maker Severstal said that his company was concentrating in its efforts on North European Gas Pipeline linking Russia and Europe across the floor of the Baltic Sea adding that Gazprom being a major Severstal client ensuring the quality of pipe for the ambitious $10.5-billion project was crucial.
Construction of the NEGP began last year. The pipeline will comprise two parallel legs of 750 miles each, and will run from Russia's Baltic coast near the city of Vyborg to the Greifswald region in north Germany.
Mr Mordashov said "We are going to launch a new facility in St Petersburg near Kolpino soon and a five meter mill will be to produce large diameter pipes that we have been unable to produce in the country for a long time." He said production would fully meet Gazprom's requirements for 1420mm diameter pipes in 18 meter length.
Gazprom holds a 51% stake in the NEGP with Germany's BASF and EON holding 24.5% each.
LME and Platts to develop reference prices for steel
London Metals Exchange has selected energy and commodity information provider Platts, a division of the McGraw-Hill group of companies, as the partner for the development of steel market price assessments. Both companies will bring their extensive commodity market expertise to create, manage and promote prices and products in the area of price risk management in the steel market. To ensure convergence between the physical and financial markets, the Platts process of discovering prices will be developed in close consultation with the steel industry and the LME.
This venture aims to provide accurate and transparent steel price assessments, which will be the cornerstone for the development of financial trading contracts. Industry acceptance and use of the steel prices remains vital to the success of the venture and a prerequisite for the launch of cash settled steel futures contracts.
Price bubble in EU could burst by year end MEPS
European steel prices now seem likely to increase by more than market participants had expected, even just a few weeks ago. Demand on the mills and for imports is strong. Real consumption of steel is growing but it has become clear that stock building is taking place and this raises the possibility of a speculative bubble that could bring problems later.
As forecasted in last months MEPS European Steel Review, steel mills have now announced plans to increase prices for many of their products with effect from July. ThyssenKrupp, Arcelor, Corus and Salzgitter are among those who have confirmed their intention to seek price rises of up to 50 per tonne from July. There is little doubt that they will succeed, at least in part. The mills are keen to take advantage of the improving market.
However some of the current increase in steel demand is undoubtedly the result of speculative stock building. EU inventories fell sharply last year and were in need of replenishment. Moreover, it is natural for buyers to place orders in advance of forthcoming price increases. MEPS says that the re building of stocks can easily get out of hand. One recent steel industry forecast is that real steel consumption in the EU may rise by 1.4%in 2006, but that apparent consumption which includes stock building could go up by as much as 5.1% YOY in the second quarter and by a disturbingly high 7.1% in the third quarter.
MEPS says that if the speculative bubble gets over inflated, the outcome will doubtless be painful. When they perceive that the run up in prices is nearing its peak, speculators will stop buying and offload their stocks. Prices will tumble and the faster they rise on the way up, the quicker they will plunge on the way down.
CSC to increase prices in Q3 due to strong demand
Taiwans Kaohsiung based China Steel Corp said it will probably increase product prices in the third quarter because of improving demand. The steel market in China, which buys about 10% of the steel maker's products, is recovering after prices fell last year and domestic customers are also buying more of the metal for construction and manufacturing.
Mr Chung Lo-min EVP said that China Steel will announce prices for domestic clients on May 25 and that prices of hot rolled steel may rise by more than 10%. Mr Chung said that "It's easy to sell all kinds of products now as demand is quite good."
China Steel on February 23rd increased prices of three products for the second quarter, its first increase in three quarters.
Mittal Steel SA may drop Highveld acquisition plan
Business Report has said that Mittal Steel South Africa appears to have dropped its plans to acquire Highveld Vanadium and Steel that would have given it almost full control of all steel output in South Africa.
Mr Davinder Chugh CEO of Mittal Steel SA spoke guardedly on the issue while speaking at the release of Mittal SA's results. Mr Chugh indicated that Mittal SA had not yet submitted any offers for Highveld despite keen interest earlier in acquiring Highveld Vanadium and Steel. Mr Chugh said that Mittal Steel SA had run into some procedural difficulties with its participation in the Highveld Steel bid which he said were related to perceptions with regard to competition issues.
Although he did not spell it out, analysts said the company may not want to get involved in a project likely to be rejected by the competitions authority. Already under fire at the tribunal for alleged unfair pricing methods, Mittal Steel SA was unlikely to get Competitions Commission approval for the deal, analysts here said. Mittal Steel SA is also fighting the local tax authorities who have rejected the company's objection to taxation of 1.3 billion rands on a payment to its parent company Mittal Steel.
Vietnam to curb thermal coal export
Vietnams coal exports have increased by 47.9% in the first four months of the year raising concerns that Vietnam may have to import coal for power generation. In 2003, Vietnam exported only 6.5 million tonnes of coal but the figure rose to 10.5 million tonnes in 2004 and to 17.8 million tonnes in 2005.
Vietnam has sought more export markets and more foreign currency for modernization in past as at that time the domestic demand was low. But now it has soared dramatically as the total consumed coal volume was 15 million tonnes in 2005. Thermal power plants in Vietnam, with 1500MW capacity accounting for 11% of the total demand for electricity, are likely to add up another 3000MW in next 5 years.
Ministry of Planning and Investment is concerned with that figure and has repeatedly asked the Government to order the Vietnam Coal and Minerals Group not to export too much coal to China at low prices as massive exports would exhaust the limited natural resources in Vietnam.
POSCOs Mexican service center to start in January 2007
POSCO's Mexican processing facility broke ground last month in Puebla, near the capital of Mexico City. The factory named POS-MPC will be built by the end of January to process 170,000 metric tons of tailored steel sheets for autos annually, POSCO said.
The local demand for steel sheets is on the rise as production plants of carmakers including Volkswagen, Ford and Chrysler are clustered around the area.
Norilsk Nickel reports 13.7% increase in profit in 2005
Net profit of Norilsk Nickel Mining and Metallurgical Company under RAS grew by 13.7% to RUR58.159 billion ($2.16 billion) in 2005 as compared with 2004.
Revenue amounted to RUR171.14 billion ($6.36 billion) up by 4.7%, gross profit totaled RUR108.45 billion ($4.03 billion) up by 14.7% and sales profit reached RUR97.66 billion ($3.63 billion) up by 19.7% percent while pre tax profit rose by 14.6% to RUR80.84 billion ($3 billion).
Norilsk Nickel retained nickel production at 243,000 tons in 2005, the same as in 2004.
SSCs Phu My steel factory put into operation
Vietnamese Southern Steel Corporation on May 15 commenced operations of its new Phu My Steel Factory in Phu My 1 Industrial Park in Ba Ria-Vung Tau province. Total investment for the Phu My Steel Factory is put at US $135 million. It is constructed by EPC contractor Danieli.
The factory has a capacity of 500,000 tonnes of steel making and 400,000 tonnes of rolling. Rolling mills gave started in last October. With the commissioning of Phu My Steel Factory, SSCs capacity has been increased to 800,000 tonnes of steel ingot and one million tonnes of rolled steel per year.
SSC has also launched a deep water port which is capable of handling 1 million tonnes of cargo a year and can accommodate vessels of 50,000 tonnes.
Price of iron ore pellets likely to dip slightly
A slight decline in 2006 international iron ore pallet prices may be on the horizon as a result of 3% reduction over 2005 prices in the agreement between CVRD and Thyssen Krupp Stahl. A modest price decline is being viewed within the industry as a market adjustment following 2005's huge price increase. Iron ore pellets currently sell on the world market for about $70 a ton after witnessing 86.4% price increase in 2005.
Mr Peter Kakela an iron ore industry analyst said though the price dip in pallets is a real surprise but it could become the pattern for Asia as well. However Mr Kakela added that this slight decrease in international prices would not have a significant impact on USs Northeastern Minnesota's six pellet producers as most of them are owned by steel companies like US Steel and Mittal steel. Minnesota taconite operations are projected to produce about 40 million tons of iron ore pellets in 2006.
Mr Frank Ongaro Jr president of the Iron Mining Association of Minnesota said All indications are that demand continues to be fairly strong and while they can adjust, that's what seems to be what is projected in the future. This is a just another piece of the global marketplace at work."
Mittal Steels Bosnian iron ore mine back on track after war
Mittal Steels Bosnian Ljubija iron ore mines produced 1.3 million tonnes of iron ore in 2005 and recorded 110 million Bosnian marka ($72.3 million) of exports. The Ljubija mines were acquired by Mittal Steel in 2004 and have reported a profit of 15 million marka in the first year of operation following years of closure due to the 1992-95 Bosnian war.
Mr Mladen Jelaca GM said that the company would invest 21 million marka in the modernization of the mines this year on top of 9 million marka invested in reconstruction in 2004-2005.
Coal mine gas blast leaves 9 missing in Guizhou
A gas explosion on Tuesday afternoon left nine miners missing at a coal mine in southwest China's Guizhou Province, local authorities said. The accident took place at about 4:45 PM on Tuesday at the Guiqing Coal Mine located at the Zhongshan Township in Qianxi County of Guizhou's Bijie Prefecture.
The explosion occurred when the miners were digging a tunnel underground in the newly built shaft.
NT Holding acquires PT Borneo in Indonesia
NT Holding Corp announced the closing of a definitive agreement with PT Borneo Mineral to acquire 70% ownership of PT Borneo. The existing management and owners of PT Borneo will be responsible for the day to day operations of the JV Company. The closing of the acquisition is subject to the approval of the Indonesian Government and due diligence on the concession rights and legality of PT Borneo by the NTHs Indonesia legal counsel.
PT Borneo was formed in September 2005 in the Republic of Indonesia and is in the coal mining and export business. PT Borneo owns a right of concession on coal mines in Sebulu Mine, in the territory of East Kalimantan of the Republic of Indonesia, which has a right of concession on a total of area of 19,191 hectares and an estimated saleable reserve of coal of approximately 22 million tons. The mine at Sebulu has the advantage of being close to the barge loading facility on the Mahakam River and therefore there is no need to rely on road transport, which is comparatively more expensive than water transports. This gives PT Borneo a competitive edge on the production cost against many other mines.
Mr Chun Ka Tusn CEO said "This is an excellent opportunity for our Company to further expand our coal export and mining businesses in Indonesia. Leveraged on the operations of PT Global, another coal mining and exporting company that we have established earlier in Republic of Indonesia in March this year, I believe the acquisition of PT Borneo will further enhance the profitability and growth of our coal mining and export business in Indonesia."
NTHH, through its subsidiaries, invests in and operates companies in China that engaged in energy and natural resources businesses. NTHH is based in Hong Kong and operates subsidiaries in China and Indonesia on energy and natural resources projects.
SUEKs Q1 net profit up by 36.2%
The net profit of Siberian Coal Energy Company under RAS increased by 36.2% to RUR12.763 billion ($472.36 million) in the first quarter of 2006 as compared to the same period a year earlier.
SUEK's quarterly revenue grew by 19.78% to about RUR 15.889 billion ($588.03 million) as compared to Q1 2005, while the prime cost increased by 16.04% to RUR 9.5 billion ($351.59 million) and gross profit climbed by 24.44% to RUR6.389 billion ($236.45 million).
Harsco Corp gets service contracts in France, Italy and Brazil
Harsco Corp announced that its MultiServ mill services division has won new service responsibilities at three steel mills in France, Italy and Brazil that are expected to generate approximately $17 million in additional new revenues over the contract durations. The new responsibilities come as additions to long term contract renewals at two locations and an all new contract at one location.
Mr Geoffrey DH Butler said MultiServ President and CEO said "These awards underscore our two principal growth strategies within the MultiServ division, which are to expand our services to existing customers and to take on services with new customers. We believe there are significant additional opportunities for continued growth in both directions, as these latest awards help to demonstrate."
MultiServ is the world's largest provider of on site, outsourced mill services to the steel and metals industry and operates under renewable long term contracts at more than 160 locations worldwide.
Chaparral expands sheet piling product range
Chaparral Steel Company has announced the successful production of its PZC 26 sheet piling product at its Virginia steel facility.
Mr Stan Baucum director of Sales and Engineered Products said "This product is one of the two most widely demanded Z piling products in North America and Europe and Chaparral Steel is the only domestic producer. It enhances our product range and is a platform for continued growth in both the domestic and international sheet piling markets."
Chaparral Steel Company, headquartered in Midlothian, Texas, is the second largest producer of structural steel beams in North America. The Company is also a significant supplier of steel bar products. In addition, Chaparral is a leading North American recycling company.
Denman & Davis allies with Tools4Mfg.com
Denman & Davis announced that it has allied with Tools4Mfg.com and now D&Ds customers have access to an advanced material calculator that enables them to determine specific requirements for their projects from material type and grade shape, to the proper product processing method. Buyers then send that information to Denman & Davis via the database of registered suppliers, and Denman & Davis then responds with an automated customer-specific price quote.
Mr Dave Deinzer president of Denman & Davis said The steel industry needs to better integrate new technologies into its customer side operation to improve information gathering and order placement. Products such as Tools4Mfg meet that need, helping service centers like us connect with new customers, improving our interaction with existing customers, and enabling us to better control costs. Its a great resource that continues to evolve, and that has the potential to further streamline our business.
Tools4Mfg, which is owned by the recently created Expedicom, is backed by the North American Steel Alliance, a coalition of independent steel distributors formed to bring greater value to their customers and suppliers. Tools4Mfg.com unites buyers and sellers in a virtual marketplace, improving supplier access to new business opportunities, and providing purchasers with instant access to pricing, availability, and supplier information.
Since 1888, Denman & Davis has served the OEM, Machine Shop, MRO, and Construction industries, along with a variety of other markets. Today with locations in New Jersey, New York, Rhode Island, and Pennsylvania Denman & Davis is the Northeasts largest general line independent Steel Service Center.
Arcelor contributes to anti seismic school building in Turkey
Arcelor has contributed to the construction of Turkey's first steel school building complying with the most advanced seismic and safety standards in Izmit Turkey, where a school building had previously been destroyed in an earthquake in 1999. On May 12th 2006, Tevfik Seno Arda High school in Izmit Turkey was inaugurated in the presence of Arcelor Senior EVP Mr Roland Junck.
The project sponsored by Arcelor and realized by the European Convention for Constructional Steelwork and Turkish Constructional Steelwork Association.
Mr Roland Junck stated "Arcelor is proud to have actively contributed to the building of this school which will allow hundreds of children to learn and develop safely and in excellent conditions. This construction demonstrates how advanced steel solutions can contribute to safe and secure buildings that respond to the requirements of anti-seismic planning, allowing Turkey and other countries where earthquakes are frequent to reduce risks. Our implication in this project demonstrates much more than our technical expertise: it is clear expression of our commitment to the values of sustainable development in a country where our company has had a very sizeable economic presence for 15 years".
AK Steel puts job cuts at heart of negotiations
AK Steel's latest proposal for a new contract at its Middletown Works has raised the possibility of cutting jobs for the first time. AK Steel spokesman Mr Alan McCoy said that "We're in the business of making steel, not cutting grass. The jobs in question, although done by union members, are what the company calls non core jobs that include painting signs and laying carpet.
Mr McCoy said that the proposal to designate certain jobs as non core and be able to outsource them has been part of the company's proposal since negotiations began in November. The difference is that previously the company was willing to let those jobs dwindle through attrition. Even now, the company is not saying it definitely will contract out those jobs, but it wants that option.
Mr Brian Daely president of the Armco Employees Independent Federation said "There's not a specific number, but there is acceleration in the reduction of jobs. In the previous proposal, it was through attrition. They removed that."
BHP Billiton completes $2 billion buyback of its shares
BHP Billiton announced that it has completed a planned $2 billion buyback of its 114.8 million shares in three months. BHPB bought 96 million shares listed on the Australian Stock Exchange and 18.8 million shares listed in London. BHP had said in February that it may take as long as 18 months to buy back the shares.
BHPB is among miners buying back shares and increasing dividends so shareholders can benefit from record commodity prices.
Insteel Industries declares 2 for 1 stock split
Insteel Industries Inc announced that its board of directors has approved a two for one split of its common stock, payable on June 16, 2006 to shareholders of record as of June 2, 2006. The split will be implemented as a stock dividend of one share for each share held as of the record date and will increase the number of shares outstanding from approximately 9.1 million to 18.2 million.
Mr HO Woltz III president and CEO said "We are pleased to announce the stock split in response to the Company's strong financial results, the appreciation in our stock price and our favorable business outlook. Today's action should serve to improve the trading volume and liquidity of our stock, providing enhanced value to our shareholders."
Insteel Industries manufactures and markets standard and engineered reinforcing solutions for a broad range of concrete construction and industrial applications. Insteel operates seven manufacturing facilities located in the United States.
Banpu's Q1 profit dips by 53%
Banpu Plc, a major regional coal miner with operations in Thailand, China and Indonesia, reported a 53% decline in first quarter net profit, to 742 million baht from 1.57 billion in the same period last year. Sales revenue for the first quarter of this year increased 51% YOY to 7.58 billion baht. The company noted that first-quarter figures in 2005 had been inflated by gains on asset sales.
Coal sales of 7.25 billion baht accounted for 96% of total revenue. The figure included 6.66 billion from Indonesian mines and 591 million baht from domestically produced coal. Power and steam revenue from China was 259 million baht. Total coal sales volume in the first quarter was 5.07 million tonnes, 31% higher than in the same period last year. The average selling price was up 11% at $35.32 per tonne. The higher selling price reflected the realization of higher contracted coal prices last year.
Mr Chanin Vongkusolkit CEO said that the company expected a good performance this year despite factors such as the floating of diesel prices in Indonesia, which would raise transport costs. Additionally, Banpu is focusing on diversifying into power and increasing its cost-management efficiency.
In 2006 Banpu plans to produce 21 million tonnes of coal, an increase of four million tonnes from last year.
Metallica Minerals announces encouraging drilling results
Metallica Minerals Limited has announced that it has recorded very encouraging black coal intercepts from its first drilling program on the Taabinga coal deposit as part of its wholly owned Kingaroy Coal project in the Tarong Coal Basin near Brisbane in Australia. Taabinga currently has a Measured and Indicated coal Resource of 181.9 million tonnes.
Three of the four core holes were drilled outside this current Resource. Further drilling will be focused on areas within the Taabinga deposit which may be suitable for open pit mining with low to moderate strip ratios as well as possible extraction of adjacent remaining coal with high wall mining methods.
Metallica Minerals Limited through its wholly owned subsidiary SE QLD Energy Pty Ltd holds the Kingaroy coal project, which includes the Taabinga coal resource and other drilled coal prospects within the Tarong Basin. The thermal coal Resource is strategically located 25 kilometers from the Tarong Power Station, the largest power station in Queensland.
LME CEO to leave by end of 2006
Mr Simon Heale CEO of the London Metal Exchange has decided to leave LME at the end of 2006 to pursue other unspecified projects. Mr Heale joined the LME in July 2001 and has overseen the introduction of polypropylene and LLDPE futures, the first plastics to be traded on the LME.
A spokesman said that a recruitment process is under way to find his successor. The nominations committee will make its recommendation to the LME board in due course,
LME chairman Mr Donald Brydon said The LME has made considerable progress under Mr Heales direction. He has led the transition in management to new levels and will leave the exchange in good shape.
Puda Coal announces Q1 results
Puda Coal Inc announced record operating results for the quarter ended March 31, 2006. Puda reported record revenue of approximately $20.8 million for the quarter ended March 31, 2006, a 386% increase over revenue of approximately $4.3 million in Q1 2005. Gross profit for the three months ended March 31, 2006 was approximately $4.5 million 424% up from gross profit of approximately $0.9 million in Q1 2005. However it reported a net loss of approximately $2.7 million for the three months ended March 31, 2006 as compared to net income of approximately $0.5 million in Q1 2005.
The tonnage sales of cleaned coal increased approximately 208,000 tons from approximately 59,000 tons in Q1 2005 to approximately 267,000 tons in Q1 2006, a 353% increase. The increase in sales was a result of China's continued strong economic growth and continued demand for high grade metallurgical coking coal.
Puda Coal through its affiliates and controlled entities supplies premium grade coking coal. The Company currently possesses 2.7 million metric tons of annual coking coal cleaning capacity and management believes it is the largest coking coal cleaning company in terms of capacity in Shanxi Province, China. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.
