May, 22 2006
Bhilai Steel Plant bags prime ministers trophy for 2003-04 & 2004-05
Steel Authority of India Limiteds Bhilai Steel Plant has won the prestigious Prime Minister's trophy for the best integrated steel plant of the country for the fiscal years 2003-04 and 2004-05. Prime Minister Dr Manmohan Singh handed over the two trophies, citation scroll, certificate and a cheque to BSP MD Mr RP Singh at a function in Visakhapatnam.
A BSP press release said "BSP's superlative performance at all fronts, particularly in the area of industrial relations, technological up gradation and human resource management front in both year 2003-04 and 2004-05 has fetched it the prestigious Prime Minister's Trophy for the best integrated steel plant in the country. BSP now has the unparalleled distinction of becoming the only steel plant in the country, in the public or private sector, to have been honored with the prestigious Prime Minister's trophy seven out of the 13 times after its institution in the year 1992.
BSP has produced 5.178 million tonnes hot metal, 5.05 million tonnes of crude steel and 4.29 million tonnes of saleable steel in 2005-06.
Tata Ryerson plans service centers in China, SA and Dubai
Tata Ryerson Ltd is reported to be looking for setting up steel service centers in China, South Africa and Dubai. China offers opportunities being the largest steel produce, South Africa is witnessing increasing presence of TATA group presence and Dubai can cater to construction boom in Gulf and also serve as a strategic location to enter Central Asian, European and African markets. The company would probably look for local partner for various benefits in all these counties. The global venture will also depend upon the priorities set by the two partners.
Mr Sandipan Chakravortty MD of TRL said We are studying the prospects of these markets. A decision for the international venture would be taken in another six months.
Tata Ryerson Ltd is a 50:50 JV between Ryerson Tull of the US and Tata Steel. Tata Ryerson acts as a service centre for the steel industry, supplying products designed to meet customer needs. Tata Ryerson has three service centers in India located at Jamshedpur, Pune and Faridabad.
PM assures rationalization of policies for raw materials of steel sector
Indian Prime Minister Dr Manmohan Singh has indicated that the government will rationalize its policies with respect of raw materials, coking coal and iron ore used in the steel making. He said that the government is committed to have forward looking policies in modernizing and expansion of coal production through captive mining policies.
The PM said that the government is also committed to improve the infrastructure required by the large industries like steel.
The Indian steel industry is faced with an issue of availability of iron ore and coking coal.
SAIL likely to acquire Malvika Steel
Telegraph has reported that Steel Authority of India Ltd is likely to take over the Malvika Steel at Jagdishpur in UP citing SAIL chairman Mr VS Jain as saying that We are in talks with financial institutions who now run the company. SAIL is working on a policy to bring the producer near the market and we feel the plant will help us cater to the north Indian markets, especially the construction market. We will study what is the real worth of the project before making naming the price we will certainly not pay what has been sunk into the project.
Rs 3,000 crores Malvika Steel was promoted by Mr Rais Usha group with large sums of money raised from the public and financial institutions in 1988. The project started off as a unit for 0.8 million tonnes of sponge iron and 1.2 million tonnes of iron pellets, only to be converted into a 0.635 million tonne integrated steel plant. After 10 years of abortive attempts, the Mr Rai cited adverse market conditions to down shutters in 1998. Malvika Steel owed IFCI about Rs 1,040 crore and UTI about Rs 256 crore.
RINL bags Prime Minister's trophy for 2002-2003
During Indian prime ministers visit to Vizag Prime Ministers trophy for best integrated steel plant was awarded to the Visakhapatnam Steel Plant, for the year 2002-2003.Mr Y Siva Sagar Rao CMD of RINL as was awarded the accolade along with Rs 1 crore by the Prime Minister.
SAILs Bhilai Steel plant was also awarded this trophy for 2003-2004 and 2004-2005 and TATA Steel was awarded for the year 2001-2002.
Steel sector tops in reducing greenhouse gas in India
A FICCI study has put Iron and steel industry as the leading sector for reducing greenhouse gas emissions to get carbon credits. Iron and steel is followed by cement as the top industry sectors in terms of share in energy efficiency projects approved by the CDM.
As many as 98 energy efficiency projects have already been approved by the National Clean Development Mechanism Authority, with carbon emission reductions of over 70 million expected to be achieved in the next six years
FICCI said that Karnataka has topped the list of states for setting up as many as 41 energy efficiency projects. The state is followed by Andhra Pradesh with 36 projects, Rajasthan (32), Tamil Nadu (29), Maharashtra (25), Uttar Pradesh and Gujarat (20), Chattisgarh (18), Himachal Pradesh (10), Orissa (9) and Madhya Pradesh (8).
Indian government to invest in shipbuilding
Minister for shipping, road transport and highways Mr TR Baalu announced that the Government will invest Rs 7,195 crore in the shipbuilding sector to modernize the infrastructure and research design base. The Government is also considering a revival package of Rs 814.50 crore for Hindustan Shipyard Limited and Rs 391.14 crore for the Hooghly Dock and Port Engineers Limited.
The Minister said the Government is also planning two international shipyards, one on the east coast and other in the west coast. Mr Baalu said "A committee has been set up to finalize the locations and also for preparing the documents for calling expression of interest for the purpose."
Maharashtra clears Chowgules Jaigad Port
Maharashtra state cabinet last week cleared a project for setting up a private port at Jaigad, midway between Mumbai and Mormugao on the west coast by Chowgule group at an investment of Rs 335 crores. The concessional agreement of 50 years between Maharashtra Maritime Board and the Chowgule group for developing the port on build, operate, own, share & transfer basis will be signed in due course.
Jaigad port, which is situated at a distance of about 115 knots from Mumbai and about 126 knots from Mormugao, is well connected by road and has a rail head about 50 kilometers away. Talks are underway with the Konkan Railway for connecting the port by rail.
According to plans, the port will have a dry dock for meeting the requirements of coastal vessels, as well as the coast guard and offshore vessels. Initially, a multi-purpose jetty of 150 meters length will be developed. The approach channel and harbor area will be dredged to a depth of 10 meters in order to facilitate accommodating vessels of 25,000 DWT. In the first year of operation, the port expects a throughput of 1 million tonnes, which is projected to touch 5 million tonnes in the next three years.
Mr MP Patwardhan ED of Chowgule Steamships said We expect to attract abundant cargo since there is extensive scope for bauxite, iron ore, coal, molasses and other bulk cargo and at the same time a number of industries are in various stages of development in the nearby hinterland.
ABG Shipyard to raise $100 million
Surat based ABG Shipyard Ltd announced that it will raise $100 million through the issue of various financial instruments in domestic and international markets. The shareholders at the extraordinary general body meeting held today authorized the board to raise 100 million dollar through the issue of equity shares, bonds, global depository receipts or other financial instruments by way of public, private or preferential allotment basis.
The issue of these financial securities would come along with an option to acquire up to an additional $15 million in the form of Global Depository Receipts or additional bonds, subject to necessary approvals and provisions.
ABG Shipyard Ltd is the flagship company of ABG group and is engaged in Shipbuilding and Ship Repair business.
7 injured in firing in Orissa
It is reported that at least 7 persons were injured when the security staff of a steel company in opened fire to disperse a mob protesting against the construction of a boundary wall on Saturday when officials of United Construction entered Raghunathpur and Sarapa village to do some building work.
Police said the villagers of Raghunathpur and Sarupa were protesting against the construction of the boundary wall of the steel plant when the security men opened fire to disperse them. The villagers, who stand to lose some agricultural land to the plant to be built by steel company, resented their entry.
Sandur welfare association demands steps to curb illegal mining
Sandur Taluk Citizens Welfare Association has demanded to provide basic infrastructure, bypass road besides checking illegal mining in Sandur valley. The association charged that the mining regulatory departments failed to curb illegal mining. The association regretted that there is no infrastructure facility developed on par with increased traffic and failed to check air pollution. Accidents have become a regular feature, people suffer from several air borne diseases and many agricultural lands have become unfit for farming.
The association submitted a memorandum to Deputy Commissioner demanding a levy of Rs 100 per ton of iron ore transported and use it exclusively to lay roads and other infrastructure in Bellary, appointment of an enquiry committee to probe into illegal mining, taking steps to prevent corruption in all mining regulatory authorities, ensuring scientific mining from extraction to processing & putting an end to overloading, spillage and pollution. The association has also asked to set right the damage caused to the agriculture fields and forest as a result of illegal mining.
They have also demanded construction of a bypass road to Sandur and continuing ban on movement of iron ore from 6AM to 9MP till bypass road is laid.
Andhra CM inaugurates Maa Mahamaya steel project
Andhra CM Mr YS Rajasekhara Reddy inaugurated Maa Mahamaya Industries at Relligourammapeta village in L Kota mandal.
Mr Reddy appreciated Maa Mahamaya Industries management for setting up the steel plant in backward region and said that more industries should come up in the region to generate adequate employment opportunities.
Mittal Steel's new offer under review by Arcelor board
The board of directors of Arcelor met at its headquarters and considered with interest Mr LN Mittals statements of May 19, 2006, one day after the opening of Mittal Steels offer. The board acknowledged the recent evolution of the terms and conditions of Mittal Steels takeover bid. This evolution confirms its initial assessment according to which the offer was greatly lacking in terms of valuation and particularly inadequate as regards corporate governance. Arcelor Chairman Mr Joseph Kinsch stated The new offer by Mittal Steel demonstrates the pertinence of positions taken by the board since January 29. We will continue to scrupulously look after the interests of all of the groups stakeholders.
The board will examine the contents of Mittal Steels revised offer as soon as it shall have been approved by the Commission de surveillance du secteur financier.
The board of directors expressed its wish to examine Mittal Steels business plan that Mr. Mittal proposed to send to Mr. Joseph Kinsch, Chairman of Arcelors board of directors, in a letter dated May 16, 2006, in order to be able to assess the industrial merits as well as the value of the Mittal Steel shares offered in exchange. Arcelors board of directors asked the management board to study their conditions and report back to the board. The board of directors also reiterated the management boards mandate to present it with all options which are in the interest of all stakeholders.
Mr Mittal convinced of getting at least 50% of Arcelor shares
Mittal Steel CEO Mr LN Mittal during an interview with French daily La Tribune said that he is convinced of acquiring at least 50% of Arcelor shares as part of his Euro 25.8 billion takeover bid for the company, the level at which Mittal Steel's offer becomes unconditional.
Mr Mittal also called on Arcelor management to refrain from pursuing purely defensive maneuvers that weaken its capacity for further development. He said I cannot believe that responsible management would deny its shareholders and its employees of such a growth opportunity.
Concerning a rumored deal with a Russian company Mr Mittal said that This type of agreement would not be in the interest of Arcelor's shareholders or stakeholders. I don't think there is any better alliance than the one we are proposing.
AK Steel increases carbon steel & zinc coating extras
AK Steel has 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. The company 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.
The company also said that it will raise prices for its zinc coating extras on new orders because of the continually escalating cost of zinc that is used to coat galvanized steel sheet products. It noted that zinc prices are hitting record levels almost daily. The company previously raised prices of its zinc coating extras by 70 percent effective April 1, 2006 and by 40 percent, effective June 1, 2006, because of rapidly rising zinc prices. This week, prices for zinc again hit record highs at over $1.70 per pound, nearly triple the price of a year ago.
BlueScope Malaysia to focus in new segments
BlueScope Steel (Malaysia) Sdn Bhd is focusing on selling Zincalume to white goods makers segment, which has been typically relying on imports for their raw material needs, to reduce dependence on the building and construction industry. It is also pushing for more steel consumption in the residential market which will boost its already strong foothold in industrial and commercial properties.
Mr Simon Linge said president of BlueScope Steel Malaysia during an interview with Business Times said "We noted a strong use of steel roof trusses among many homeowners in Sabah and Sarawak as well as countries such as Australia, Thailand, Indonesia, Vietnam and China. And we see a huge opportunity to grow this usage in Peninsular Malaysia." Mr Linge said over the next 12 months, the company will roll out a series of product innovations around its existing products.
Bluescope Steel (Malaysia) Sdn Bhd, formerly known as BHP Steel (Malaysia) Sdn Bhd, is a 60-40 JV between Australia based BlueScope Steel Ltd and Malaysian PNB Equity Resources Corp Sdn Bhd, which has already invested A$150 million (RM412.5 million) over the past 10 years.
Hyundai Heavy posts rise in profit in Q1 on high prices of ships
The world's largest shipbuilder South Korean Hyundai Heavy Industries Co has posted a fourth consecutive quarterly profit in the first quarter as it raised ship prices. Net income totaled 22.9 billion won ($24.4 million) in the three months ended March 31 as compared with a loss of 88.95 billion won in the same period a year earlier.
Hyundai and other shipyards in South Korea, the world's biggest shipbuilding nation, have completed orders received in 2002 and 2003 when prices fell to 10-year lows. They are now building vessels ordered after vessel prices began to rise. Global ship prices for very large crude oil carriers rose 39% to $110 million per vessel at the end of 2004 from $79 million at the beginning of 2004. Prices for container ships which can carry 6,200 TEUs rose 24.6%.
Mr Matthews the new GD of US Steel Serbia
United States Steel Corp has named Mr Douglas R Matthews as vice president and general director of US Steel Serbia.
Mr Matthews was general manager of blast furnace engineering and technology, Pittsburgh headquarters.
IngeTeam to supply electrical & automation for Ural Steel & Ilyich
IngeTeam's has begged a contract for engineering work, supply, coordination, assembly and start up for electrical and automation equipment at a four strand continuous caster facility built by SMS Demag for Ural Steel. IngeTeam is also involved in performing engineering work, supply, coordination, assembly and start up for electrical and automation equipment for a moving girder furnace Stein Hurtey is building for JSC Ilych Mariupol Steel and Iron Works.
After two successful bids for contracts in the iron and steel industry in Russia and the Ukraine, IngeTeam Group has really consolidated its position in Eastern Europe, where the Basque group has been operating for the past eight years. The Basque group will be coordinating the work from its factory in the Czech Republic, which is the base for Ingeteam interests in Eastern Europe as a whole.
IngeTeam was created in 1990 by combining TEAM (Tnica Electrica de Automatismo y Medida) and INGELECTRIC. Ingeteam Group is made up of 26 companies, all of which are at the technological forefront in their respective areas.
Bangladesh chamber for renegotiation of Phulbari deal
The Federation of Bangladesh Chambers of Commerce and Industry urged the government to renegotiate its agreement with UK based Asia Energy about the development of Phulbari Coal Mining Project. FBCCI president Mir Nasir Hossain after a meeting with the Chief of Asia Energy Bangladesh project said "We think, the government should renegotiate its agreement with the Asia Energy on the coal mining project. The existing agreement provides for only 6% royalty, which is very low compared to such agreements in other countries."
The government has appointed an experts committee to examine the Asia Energy's plan. The committee is yet to submit its report. The Asia Energy has been pursuing the government to approve its development plan on the basis of the existing coal mining policy, which provides for a 6% royalty for the government. But the government has been saying that it might approve the Asia Energy's plan on the basis of a new coal policy that recommends about 16% royalty for open cast mining.
Asia Energy Corporation (Bangladesh) Pty Ltd, a subsidiary of UK based Asia Energy Corporation Pty Ltd, have been working to develop the Phulbari coal mine under an agreement signed in 1998. The company recently conducted a feasibility study and submitted a plan to extract coal from the mine through open pit methodology.
Mexican union leader Mr Gomez seeks asylum in Canada
Mr Napoleon Gomez Urrutia , union leader at the centre of a labor crisis in Mexico has sought shelter from the storm in Canada. Mr Urrutia had been highly critical of national labor and safety standards during his tenure, and organized many wildcat strikes. He was replaced shortly after the death of 65 workers in a coal-mining accident that he called industrial homicide.
The Mexican government removed Mr Napoleon Gomez Urrutia from his post as head of the National Union of Miners and Metalworkers (Los Mineros) in February, accusing him of masterminding a $61 million money laundering scheme involving workers' funds. His removal resulted in near chaos in Mexico's mining sector and among the country's labor movement in general.
PSMC Privatization Hearing on May 24th
Pakistans Supreme Courts Chief Justice Iftikhar Muhammad Chaudhry has fixed the hearing of the constitutional petition challenging the privatization of Pakistan Steel Mills for May 24 2006.
The chief justice has constituted a larger bench comprising of 9 judges, which after hearing the constitutional Petition, will be reconstituted to be divided into three benches as usual.
Russian Stroitransgaz to bid for gas facility project in Algeria
Russian pipeline company Stroitransgaz will bid for the construction of a gas processing facility in Algeria. A tender to build a gas processing facility to produce ammonia acid has been announced by Algerian state run company Sinotracy.
Mr Leonid Bokhanovsky VP said that Stroitransgaz would file an application in consortium with Russia's independent natural gas producer Itera. He said the company was currently preparing relevant documents and would submit its bid in September 2006. He said "If we win the tender, we intend to invest more than $300 million in the project."
Romania to drop price control in mining sector
The Romanian government has decided to drop the price control for products and services in the mining sector, leaving the sector open to a more market oriented & economically efficient management. The prices for mining products and services will from now on be established in competition to other domestic and foreign providers.
The government opted to drop an ordinance regulating the prices in its May 10 session, according to a press release. The current structure of the sector shows there is a significant number of economic agents to eliminate the issue of a monopoly in this field.
MidAmerican buys coal rich land
Investment mogul Mr Warren Buffetts Iowa based MidAmerican Energy Holdings Co has bought 8,500 acres of coal rich land located between Buffalo and the southern end of Lake DeSmet in Johnson County with the intent of establishing power generation projects.
Mr David Sokol CEO of MidAmerican said that acquiring the Johnson County property is part of MidAmerican's long term plan to meet energy needs and it intends to invest in ultra low emissions coal technology, such as integrated gasification combined cycle, to see whether it will work with Western coal.
MidAmerican recently purchased PacifiCorp, one of the largest electrical utilities in the West and also owns Kern River Gas Transmission Co, Wyoming's largest natural gas connection to Western consumers.
Ukraine to start coal mining privatization
It is reported that Ukraines State Property Fund has decided to privatize 6 coal mines. Delo periodical reported that Privatization of six shafts is an investment market test before the total privatization of the coal mining industry.
The privatization of coal mining industry suits Mittal Steel Kryvyi Rih which lacks coal supply in Ukraine. According to Delo, Mittal Steel Kryvyi Rih jointly with its investment consultant CA IB Corporate Finance are going to made a proposal to the Coal Ministry and the State Property Fund on shafts privatization.
