May, 02 2006
Indian government approves Rs 2,629 crores for coal mining
Indian government has approved investment of Rs 2,629 crore for increasing domestic coal production as against the total investment plan of Rs 5,319 crores as envisaged by the Planning Commission. Out of the 16 projects that were identified for increasing coal output, 13 have got clearance from the Public Investment Board.
Under the emergency plan drafted last year plans are afloat to increase coal production by 71 million tonne in eight years to reduce the gap in coal shortage to about 24 million tonne, which will be met through imports.
Apart from the emergency expansion plan, the numbers of captive mining blocks have also been raised to enhance coal production. Till now, 94 captive blocks have been allotted to producers. Now, 59 more blocks are in the pipeline. Out of these 59 blocks, 20 coal blocks and 11 lignite blocks will be offered to captive miners, and 28 blocks to PSUs.
Essar to start Point Lisas construction in June
It is reported that Essar Steel has already begun ground work on a 2.5 million tonne hot rolled coil project at Point Lisas in Trinidad and Tobago and the company is likely to begin construction work as early as June 2006.
The new plant is expected to be built at a cost of Rs 5,800 crore. Iron ore for the steel plant will be supplied by CVRD.
TATAs Bangladesh proposal reported to be under process
It is reported that Bangladesh has reacted positively to TATA Groups revised proposals for $3 billion investment in its energy & steel industry. TATA Group on Sunday proposed higher gas price and some new package benefits in its revised proposal for investment in four projects fertilizer, steel, power and open-pit coal mine.
According to the new price model, TATA offered $3.10 for per thousand cubic feet gas for its fertilizer project and $2.60 per MCF for its proposed steel plant. The gas price, however, may vary from $2 to $4 per MCF while the floor price will be $1.5 per MCF at the initial period of first 5/6 years. TATA proposed a flat price of $1.10 per unit gas in its first offer.
The Bangladesh Board of Investment will send the proposal to the negotiation committee headed by Communications Secretary Mr Shafiqul Islam and the negotiation committee will examine it before submitting to the ministerial committee headed.
ESM bags order for hot metal de sulphurisation unit from BSP
It is reported that Steel Authority of India Limiteds Bhilai Steel Plant has placed an order for a 2 stand hot metal de sulphurisation station for its SMS -II on ESM Group Inc USA. The stations will treat nearly 2.8 million tons of hot metal annually for a ladle size of 130 tons.
The turn-key package includes supply of Ladle Tilt Car and Fume Extraction System as well as injection vessels, silos and automation systems. The project is slated to be executed in 18 months time.
ESM Group is one of the foremost suppliers of hot metal de sulphurisation systems in the world and has supplied over 30 stations in last 5 years. This is reported to be their first order in India.
Mr Munda blames center for delay in thermal power projects
Jharkhands CM Mr Arjun Munda has accused Union coal ministry for delay in allocating coal blocks for exploration by power sector companies who have signed MoUs with the state government. Mr Munda said We had sent our recommendations for the allocation to the Union ministry six months ago. But as of now, the ministry has taken no decisions. This is delaying the power projects in the state.
Jharkhand has signed eight MoUs for setting up thermal power plants in the state with several companies including Tata Power, Essar and Calcutta Electric Supply Company.
However Union coal Minister Mr Shibu Soren had said last month that the ministry received about 400 applications against eight new coals and as a result the ministry has invited Expression of Interest for allocating these blocks.
State Trading Corp profit up at Rs 50 crores in 2005-06
State Trading Corp has registered a profit of Rs 17 crore for the quarter ending March 31 2006 as compared with Rs 3.7 crore in the same quarter last year. This has taken the annual profit before tax for the company to Rs 50 crore for 2005-06 from Rs 37 crore 2004-05.
According to a release issued by STC its export turnover crossed the Rs 1,000 crore marks driven by chemical, drugs and pharmaceutical exports. Increase in exports can be attributed to the companys initiative to diversify into steel raw materials, coke and iron ore. During the year, STC entered into a MoU with Mysore Minerals to secure an assured supply of iron ore fines.
The import turnover for STC has been over Rs 5,500 crore. There has been a significant improvement in trading margins here too, as bullion import which accounted for 60% of the companys import turnover previously has been reduced to 32%. Excluding bullion, the import turnover for the company has seen an increase of 26%.
Kamadhenu Ispat ties up with Binju Metal of Hyderabad
It is reported that Kamadhenu Ispat Ltd has tied up with Binju Metals & Alloys Industries Ltd of Hyderabad to manufacture its branded products. Initially, the production from Binju Metals would cater to the AP market. The present monthly production capacity is 5,000 tonnes. The target set for the unit in the next few years is 10,000 tonnes per month.
Mr Satish Agarwal CMD of KIL said that the move is to expand and strengthen the market in the Southern region for the company with the support of the regional player.
Mr Prabhu Dayal Kedia Chairman of Binju Metals said the arrangement would help the company serve its customer more competently
After this tie up Kamadhenu Ispat will have four franchisee units in South India.
KPC gets approval for captive coal mines
The Karnataka Power Corporation, which runs the Raichur and Bellary Thermal power stations, has entered into an agreement with the East India Mining and Trading Association to have six coalmines of its own.
The coal linkage committee has given approval for owning six coalmines to cater to the needs of both the thermal power stations.
KPC has been importing coal from Indonesia and Australia.
Indias mineral production marginally up in February
The mineral production from mining and quarrying sector in February 2006 was marginally higher as compared to preceding month and the corresponding month of previous year. The total value of mineral production excluding atomic & minor minerals in the country during the month was Rs.6139 crore.
The contribution of coal was the highest at Rs.2708 crore, iron ore accounted for Rs.649 crore, lignite Rs.178 crore and limestone Rs.154 crore.
Production level of coal was at 37.8 million tonnes, lignite 2.5 million tonnes, iron ore 13.8 million tonnes and limestone 14.1 million tonnes.
Bandar port revival on cards
AP government has decided to revive the Bandar port with private participation and entrusted the feasibility survey work to NSRDC, Visakhapatnam. The survey revealed that Rs 1,200 crore was needed for the port revival. L&T has also conducted a survey on the feasibility of the port and submitted a report to the State Government stating that there was a possibility of carrying on the export and import operations in the port five times more than the Kakinada port.
As part of the revival program, the Government has called for global tenders in which Reliance, Indian Madras Company, Maytas-Nagarjuna Constructions, L&T Rambole and Gujarat Private Limited offered bids. An agreement on the technical bid is going to be reached in the first week of May.
The Vijayawada Thermal Power Station would be able to save Rs 20 crore per annum as coal could be imported from the port instead from Kakinada port.
French Eramet concerned over Inco-Falconbridge deal
Mr Jacques Bacardats CEO of French Nickel miner Eramet is raising concerns about the effect of merger of Inco & Falconbridge on the nickel market as a whole, especially on the timing and development of new nickel mines. He said that the combined Inco Falconbridge would be the world's biggest nickel producer with a daunting portfolio of mines and projects.
The concept of dominant position that exists in any antitrust matter is a bit different in the mining business. Mr Bacardats said "Because you should take not only the current picture of the market as it is today. The question for the mining business is what will become the new picture of mining resources in the world in 5 or 10 years' time."
He said that Eramet has voiced its concerns to the European Commission, which, along with the US Department of Justice, is reviewing the deal.
Canadian authorities approved the transaction in January. Launched last October, the friendly takeover bid, worth $12.5 billion when announced, has been extended three times to provide more time to obtain regulatory approvals and is now open until June 30.
Evrazs ZSMK to install new dust catchers in converters
Evraz Group's West Siberian Iron & Steel Plant will install a new emissions control system at the No 2 oxygen converter in its No 1 oxygen converter division. The system is intended for suppression of red fumes from pouring of molten metal. ZSMK said "They amount to 3-5% of production emissions and require construction of huge, expensive cleaning installations."
ZSMK first installed such equipment at the No. 5 oxygen converter, reducing red fumes by 75-80%. There are currently no similar systems at other Russian steel plants.
ZSMK said that in the past two years it has replaced gas scrubbing systems, and developed technology and equipment to localize discharges of incandescent gases and redirect most of it to gas scrubbers. These measures have reduced atmospheric emissions by 3,615 tonnes per year and dramatically improved the environmental situation in the plant's oxygen converter shops.
New Millennium signs MoU with Sinosteel MECC
New Millennium Capital Corp has announced that it has entered into a MoU with Sinosteel Equipment & Engineering Company, a wholly owned subsidiary of Sinosteel Corporation with a view to mandating Sinosteel MECC to assist NML in sourcing plant, equipment and services in China. NML and Sinosteel had previously signed a MOU regarding the consideration of a JV to develop, construct and operate the LabMag Iron Ore Project.
NML wishes to maximize the sourcing of the equipment, materials and supplies from China in a manner that would meet its technical specifications, quality, cost, delivery, performance guarantees and serviceability requirements. Since NML does not have an organization in China to undertake this work, Sinosteel MECC has agreed to assist NML, as NML's representative during the pre feasibility stage, to provide budgetary prices for the selected equipment, components and materials and cost estimates for detailed engineering from Chinese sources. Sinosteel MECC will also assist NML in the later stages as the Project develops.
Mr Robert Martin President and CEO of NML stated that "this MOU further develops NML's relations with Sinosteel as a potential and strong strategic partner in the development of the Project".
Mr. Lu Pengcheng VP of Sinosteel MECC said "Sinosteel MECC is pleased to be able to cooperate with, and assist, NML on this major iron ore project as it proceeds on the development path. Sinosteel has strong capabilities in the design and supply of metallurgical equipment and is well positioned to help NML source equipment and services in China."
Smorgon Steel proceeding to develop US market for LSB
After the completion of extensive market research, the Board of Smorgon Steel has approved investment in the next phase of the Companys previously announced intentions to develop the market for the LSB in the USA. The Company will, as soon as practicable, begin the detailed project planning necessary before a production facility in the USA can be commenced.
The Company estimates that this next phase will take between 6 and 12 months and during that period, customers in the USA will be supplied, on an interim basis, with LSB manufactured in Australia.
Nucor Corp closes acquisition of Connecticut Steel
Nucor Corp announced that its subsidiary Nucor Steel Connecticut Inc closed the purchase of substantially all of the assets of Connecticut Steel Corporation for about $43 million in cash.
Mr Mike Parrish EVP of Nucor said The addition of Connecticut will allow our bar products group to increase its product offerings to existing customers and enhance our abilities to grow into new product offerings."
Connecticut Steel Corporation Located in Wallingford, Connecticut, has an annual capacity of about 300,000 tons of wire rod and rebar and approximately 85,000 tons of wire mesh fabrication and structural mesh fabrication.
AK Steel's Zanesville Works receives 3 safety awards
AK Steel announced that its Zanesville Works received three awards at the Zanesville- Muskingum County Safety Council's annual safety meeting held on April 26, 2006. The awards were presented for 2005 safety performance by the Zanesville-Muskingum County Chamber of Commerce in conjunction with the Ohio Bureau of Workers' Compensation, division of Safety and Hygiene.
The awards included: The Group Safety Award for having the lowest incident rate in the industrial group; the Award for operating the entire year without a lost-time injury; and, a Special Award for working 1,366,226 hours without a lost-time injury, from April 21, 2003 to December 31, 2005.
Mr James L Wainscott chairman, president and CEO of AK Steel said "We congratulate our Zanesville employees for their exceptional safety performance. We are especially proud of their significant achievement of working well over two years without a single lost-time injury." Mr Wainscott added that the company had the best safety record in its 105 year history during 2005. AK Steel's corporate-wide total recordable injury rate of only 0.36 during 2005 was about 15 times better than the steel industry average rate of 5.43, according to data compiled by the American Iron and Steel Institute.
Headquartered in Middletown, AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets, as well as tubular steel products.
SDI completes acquisition of Roanoke Electric Steel
Steel Dynamics Inc announced that it has completed its previously announced acquisition of Roanoke Electric Steel Corporation. The transaction closed on April 11, 2006, immediately following approval of the transaction by Roanoke stockholders.
Pursuant to the Merger Agreement, Roanoke stockholders received $9.75 in cash and 0.4 shares of SDI common stock for each share of Roanoke stock outstanding at the effective date of the merger.
The combined companies will now operate five electric furnace mini mills with annual production capacity of approximately 5 million tons, whose steel products include flat rolled, merchant bar, engineered bar, and light structural steels as well as wide flange beams and rail. In addition, the company will now operate five facilities that fabricate steel joists and decking used in non-residential construction and two scrap-metal processing facilities. Steel Dynamics now operates facilities in the states of Indiana, Virginia, West Virginia, South Carolina, Florida, Ohio, and Tennessee.
Grupo Imsa announces Q1 2006 results
Grupo Imsa SA de CV announced results for the first quarter of 2006. First quarter revenues totaled Ps 8,442 a growth of 7.6% YOY. Operating income increased 324.5% in first quarter 2006 as compared to the previous year, to Ps 1,006. EBITDA totaled Ps 1,320 in first quarter 2006, an increase of 144.4% vs. first quarter 2005. Net Income was Ps 607, an increase of 235.6% YOY.
Grupo Imsa has expanded the capacity of its plants, with increases resulting from capital expenditures and productivity improvements. This has enabled the Company to multiply the benefits of its Continuous Improvement and Six Sigma programs.
Foundational Coal raises 2006 guidance
Coal miner Foundation Coal Holdings Inc has increased its profit outlook for 2006 as it projected lower depreciation and amortization costs than previously expected. Net income for the year should be between $90 million and $120 million, the company said, up from its previous guidance of between $70 million and $100 million.
The company said it sees depreciation, depletion and amortization costs being only $180 million to $190 million this year, down from its previous outlook of $205 million to $215 million.
Chinese firms bag 10,000MW power plant contract in Indonesia
It is reported that China's power equipment giants Harbin Power, Shanghai Electricity Corp, Dongfang Electricity Corp and China National Technology Import Export Corp would sell equipment to Indonesia for generating 10,000MW electricity from coal fired power plants at an estimated cost of $7 billion.
The four manufacturers signed a MoU with Indonesia's state owned electricity company Perusahaan Listrik Negara during last week and the formal contract will be signed in August. The agreement calls for the Chinese side to provide both equipment and funding, through export credits from China Exim Bank and the Bank of China.
The Chinese firms offered a construction cost of $800 to $850 per kilowatt against $1,000 to $1,700 from US, German and Japanese companies.
Expert committee terms Phulbari agreement illegal
Expert Committee, which is examining the feasibility study report of the Phulbari Coal Mine project in Bangladesh, has termed the agreement with the BHP Minerals International Exploration Inc in 1994 on exploration and extracting coal totally illegal. A committee is reported to have said "The agreement was signed violating the Mines and Minerals Rules of 1984 in terms of royalties and other tax regime. As a result the agreements with BHP Minerals as well as to the Asia Energy Corporation become fully illegal."
According to the Mines and Minerals Rules of 1984 the royalty should be 20% for both the open and under cast mining. But the agreement signed with the BHP, later with the Asia Energy Corporation, revealed only 6% and 5% of royalties for open and underground mining however the rule itself was changed to match these parameters. "Agreement should be signed depending on existing rules and no Rules can be changed to favor any particular company" the expert said.
PISI sees steel demand pick up in Philippines in 2006
Demand for iron and steel products is expected to rebound this year from a 10% decline last year should the increase in oil prices does not adversely impact and curtail the growth in the industry. Mr Wellington Y Tong president of the Philippine Iron and Steel Institute said that should prices of oil continue to rise this will have a dampening impact in the construction industry.
Mr Tong said the first quarter demand showed a very promising year with steel bars increasing by 5% to 10% but the entry of April is generally low because of the long holidays. "This is supposed to be the right time but the oil prices have a dampening impact because clients have to reallocate" Mr Tong said.
The growth in the construction sector is fuelled by the overseas Filipino workers undertaking housing construction and Filipino migrants retiring in the Philippines thus triggering high uptake in the sale of condominiums. The potential also for infrastructure is very high because the government is pump priming the industry.
Demand for iron and steel products in the country dropped by 10% to 2.6 million tons in 2005 from 2.9 million tons in 2004.
Alpha Natural completes acquisition of Kentucky mining operations
Alpha Natural Resources Inc has completed the acquisition of certain coal mining operations in eastern Kentucky from Progress Fuels Corp., a subsidiary of Progress Energy. Alpha acquired the stock of Diamond May Coal Co and Progress Land Corp and certain assets of Kentucky May Coal Co Inc from Progress Fuels. Collectively the acquired businesses control 73 million tons of coal reserves and produced about three million tons of coal last year. The purchase price was $23 million plus an adjustment of approximately $3.7 million for working capital, subject to post-closing adjustments.
Alpha financed the transaction through its revolving credit facility.
Alpha Natural Resources is a leading producer of high quality Appalachian coal. Including the newly acquired Progress operations, approximately 91% of the company's reserve base is high Btu coal and 84% is low sulfur qualities. Alpha is also one of the nation's largest producers and exporters of metallurgical coal. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 72 mines feeding 12 coal preparations and blending plants.
China to eying mines in Nigeria
China says it is willing to invest part of the 15 billion dollars set aside for acquiring mines worldwide in Nigeria's mining sector. Head of the delegation Mr Jonathan Pang said "We know that Nigeria is rich in different minerals and we want to explore, acquire mines if Nigeria is ready to sell, and bring in technology as well." Mr Pang said "We are interested in different Nigeria's minerals including coal, copper, zinc, lead, iron ore, clay to make brick which would be used to make cheaper houses."
Ms. Eze Emecheta president of Nigerian Chinese Chamber of Commerce said that Nigeria would benefit from investment from China, if the opportunity was granted and since Nigeria's mining sector had been revived, it was an opportunity for the country to open its doors for major global capital inflow. She said that a new mining legislation which would be out soon and that the old ways of acquiring mining licenses and leases had been done away with and that a more transparent method, called the mining cadastre system, was now in use. She said that some Chinese companies had pre qualified for the bidding of the coal properties, mining leases and the bitumen blocks.
Greenhouse gases rise in 2005
US National Oceanic and Atmospheric Administration have reported that greenhouse gases continued to increase steadily in 2005. Carbon dioxide, emitted by coal burning power plants and cars, increased last year, according to the federal climate agency's Annual Greenhouse Gas Index. So did nitrous oxide, a byproduct of farming and industry. But methane emissions leveled off and chlorofluorocarbons, artificially made chemicals used in refrigerators and air conditioners, declined, the agency said in a statement.
The AGGI showed a 1.25 percent rise in overall greenhouse gases in 2005. The index stood at 1.215 in 2005 compared to a 1990 base of 1.00, reflecting a steady rise in greenhouse gases over the past 15 years. The index is based on the levels of greenhouse gases in the atmosphere in 1990, a year chosen because the global Kyoto Protocol that aims to limit emissions of these gases also picked it as a baseline.
The constant or dropping rates of methane and chlorofluorocarbons, also known as CFCs, have slightly slowed the overall growth rate. By contrast, global carbon dioxide increased from an average of 376.8 parts per million in 2004 to 378.9 parts per million last year.
The rise in greenhouse gases has contributed to global warming. Over the past 50 years, the average temperature on Earth has risen at the fastest rate in recorded history, with the 10 hottest years on record occurring since 1990.
AK Steel Zanesville starts negotiating with union
AK Steel Corp, already embroiled in one lockout, is negotiating its contract with the union that represents about 200 workers at its Zanesville plant. The contract with United Auto Workers Local 4104 expires May 20. AK Steel and the UAW had several bargaining sessions during the last week of April.
AK Steel is trying to reach agreements with unions at several plants that would make changes in health care benefits to employees and retirees, the company said in an SEC filing.
The lockout of 2,400 steel workers at the company's Middletown Works is entering its third month, with negotiations continuing and replacement workers operating the plant.
Royal Laser completes acquisition of Venture Steel
Royal Laser Corp announced that it has completed its previously announced acquisition of Venture Steel Inc. The total purchase price was $43.5 million, of which $2.5 million was paid in shares to be held escrowed for a period of 12 months and the remainder was paid in cash.
Venture Steel is a custom flat rolled steel processor specializing in all types and grades of hot rolled, cold rolled and coated steel. Venture Steel operates out of combined facilities totaling 230,000 square feet located in the Greater Toronto Area, Ontario, where it currently processes approximately 360,000 tons of steel per annum.
Royal Laser, through its wholly owned operating subsidiaries, manufactures custom metal and wood products targeted at the multi billion dollar high end retail in store development industry, the OEM industrial products, automotive and construction industries, in Canada, the United States and increasingly, overseas.
Wire factory inaugurated in UAE
Chairman of the Ras Al Khaimah Free Trade Zone Authority inaugurated Kriss Wires Factory at the RAK FTZA Industrial Park built with a total investment of Dh 15 millions. The unit specializes in manufacturing high carbon wires used in construction, furniture and stainless steel products like watch needles, pins, clips and rods and has capacity to produce 1,000 tones of carbon wires monthly.
Mr Vishal Chhabria, one of the promoters said that the production of the new plant will doubled in the coming six months along with an increase in the variety of products in order to meet the needs of the local markets and to export the plant's products to the Middle East, European, and American markets.
Cool or Cosy wins building contract for Aztec Koolan Island
Western Australian Cool or Cosy Ltd has announced that subsidiary Blue Ridge WA Pty Ltd has been awarded the contract to supply transportable buildings for Aztec Resources Limited at its Koolan Island project. Revenue of $2 million will be generated from the contract which has an estimated timeframe of 20 weeks and commences immediately.
The core facilities buildings will form an integral part of the accommodation village being prepared for the start of mining operations at Aztec's Koolan Island iron ore project.
Olympia Resources ships Zircon concentrate to China
Olympia Resources has shipped the first 120 tonnes of zircon concentrate from Kalimantan, Indonesia for trial testing by Chinese customer Zhangzhou Antai Zircon Industrial Development Co Ltd. A second trial shipment is planned to China for Zibo Qi-Culture Technical and Economic Development Co Ltd in May.
Zhangzhou and Zibo have each agreed to purchase from Olympia at world market prices up to 50,000 tonnes of zircon per annum over the next 10 years. The zircon concentrate, containing 75-80% zircon, is purchased by Olympia from small zircon producers in Kalimantan. Olympia plans to source approximately 35,000 tones of zircon per annum from local producers and anticipates increasing supply by establishing its own zircon mining operation in Kalimantan to produce up to 100,000 tonnes of zircon per annum.
Olympia Resources MD Mr Peter Gazzard said "Our first shipment represents the beginning of what we hope is a very profitable long term relationship with the Kalimantan mining community and our Chinese customers. Olympia's core objective is to become a reliable and respected supplier of premium quality heavy mineral sands, particularly zircon, to the world market. Kalimantan is important to achieving this objective."
Olympia Resources is a Western Australian company focused on the exploration and development of a range of resource projects. OLY is developing the Harts Range Abrasives deposit Olympia Resources Limited near Alice Springs in the Northern Territory and plans to begin mining heavy mineral sands at the Keysbrook Project in the South-Western Australia in early 2007.
Arch Coal names Mr Bumbico as VP of safety
Arch Coal Inc announced that its board has elected Mr Anthony Bumbico VP of safety. Mr Bumbico had served as corporate safety director for Arch Coal since 2004. Prior to Arch Coal, he served as vice president of safety for Horizon Natural Resources.
Mr Bumbico is a member of the safety committees for both the National Mining Association and the West Virginia Coal Association, according to Arch Coal's release.
St Louis based Arch Coal Inc is one of the largest coal producers in the country, providing the fuel for about 7% of the electricity generated in US.
SABIC signs $1 billion Islamic loan with Deutsche Bank
Saudi SABIC announced signing of a $1 billion Islamic loan with Deutsche Bank to help fund future projects. A statement said "Under this deal, SABIC will be able to outsource banking facilities to finance part of its expansion projects and future investments."
SABIC said that it has total current expansion projects valued at between $25 and $29 billion.
SABIC is 70% owned by the Saudi government and 30% by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council.
