According to Midrex Technologies direct reduced iron production grew by approximately 2% worldwide in 2005 to 55.9 million metric tons roughly 1.3 million tons over 2004. The rise in 2005 DRI production was due to a number of small, rotary kiln operations started up in India, the only capacity additions during the year. Direct reduction is an alternative to blast furnace iron making. DRI or HBI is used by steelmakers to enrich the ferrous content of their melts.

India led all nations in DRI production with 11.1 million tons, followed by Venezuela with 8.9 million tons, Iran with 6.9 million tons and Mexico with 6.0 million tons.

According to Midrex, more than 15 million tons of new DRI capacity is under contract, mostly in the Mid East and South America where natural gas costs are lower than in the rest of the world, and steel scrap is less available. Because of rising natural gas costs, the handfuls of North American DR plants have been idled.

Midrex is a subsidiary of Kobe Steel Ltd and the leading supplier of DRI technology. Midrex designs produced the largest percentage of DRI in 2005, 35 million tons or 63% of the total global output. It was the 27th consecutive year that the Midrex processes outpaced the other commercially available DR technologies.

HYL processes, recently re branded as product of the EnergIron consortium, produced nearly 20% of the world total.

Chhattisgarh government has recommended that the Centre cancels allotment of a part of the Rowghat iron ore reserves to Nicco Jaiswal and Monet Steel as it was allegedly done in a disputed manner. The Rowghat mines are reserved for SAIL

Chattisgarh CM Dr Raman Singh told a media gathering that ''Nicco Jaiswal and Monet Steel were allotted the 47 million tonne Rao Dogri area reserve citing that SAIL had no objection to the move.

Central government is understood to have decided to put on hold the issue of merge of Rashtriya Ispat Nigam Limited with Steel Authority of India Limited. Union Steel Minister Mr Ram Vilas Paswan decided to go slow on the issue due to stiff opposition from Vizag MP Mr N Janardhan Reddy, Union Minister for Coal Dr Dasari Narayana Rao, Telugu Desam Parliamentary Party leader Mr K Yerran Naidu and others.

The merger move was opposed by Andhra Pradesh CM Mr YS Rajasekhara Reddy at the Vizag Steel Plant's expansion project launching ceremony.

An official of the RINL said that as per their information, after eliciting the opinion of the MPs, the Ministry had decided not to go ahead with the controversial proposal.

Indian coal ministry is in the process of finalizing a new captive coal mining policy for the small scale industry units under which the ministry will allocate captive coal blocks through competitive bidding to the SSI units. It is envisaged that a group of SSI units will form a consortium and apply for coal blocks for joint operations and captive mining of coal in the area of approved end users.

SSI units with small requirements could apply for small and isolated reserves, on a sub lease basis for using coal mined from such reserve in their plants. The sub lease will be awarded by Coal India Limited.

As per the existing legal framework, companies in the private sector engaged in iron and steel production, power generation and cement production can mine coal for captive use in the respective end use projects.

Orissa government has decided to prepare a master plan for Kalinga Nagar in Jajpur district. South Africa based Lea Associates will prepare the master plan in collaboration with School of Planning and Architect, New Delhi and the Centre for Environment and Planning. The master plan will be completed by July.

Kalinga Nagar Industrial Area will be developed for a population of over 10 lakh keeping an eye on 2025 and will be extended to 177 square kilometers. As per the draft, the KNIA will be extended to 134 villages. So far 112 villages have been included in the industrial area. About 1 million hectare land will be acquired by the Government in a phased manner for the development of the area.

According to the draft plan, 68 square kilometer out of the total area will be reserved for town planning. About 89 square kilometer will be earmarked for industrial units while 20 square kilometer will be reserved for development of different infrastructure including bus stand, hotels, schools and hospital.

Decision has also been taken to set up Kalinga Nagar Development Authority.

Panaji Port has registered a 30% growth in its cargo movement during 2005-06.

The Captain of port Mr AP Mascarenhas, said As much as 11.3 million tonnes of cargo was exported last year including iron ore, manganese ore, bauxite and other items as against 7.9 million tones of cargo exported in 2004-05."

Mr Mascarenhas added that "3.33 million tonnes of coking coal was imported last year as against 2.51 million tonnes a year before and that coking coal is the only commodity imported by the Panaji port.''

Panaji is a state run port, situated along Panaji city on the tidal ridges of Mandovi River.

Bharat Earth Movers Ltd rolled out the first batch of 29 flat military rail wagons meant to transport army's tanks and other heavy equipment. The 29 wagons are part of an Rs 55 crore Army order placed with BEML for 178 of these milrail special wagons. The first batch was produced in record 12 months at the Bangalore complex.

The remaining 149 are awaiting wheel imports and would be completed in 2-3 months.

Mr LN Mittal vowed to press ahead with his bid to acquire Arcelor, despite plans by Arcelor to merge with Severstal saying that his offer made more sense for shareholders, offered better value to shareholders and would create a stronger industrial group. LN mittal told French daily Le Figaro "We are determined to complete our approach to Arcelor. It is in the interests of all the shareholders and all the parties involved, in both financial and industrial terms."

Mr LN Mittal said "We are offering to involve shareholders in the construction of a European champion, the undisputed world leader. I am convinced they will recognize the strength of our project. This alliance makes obvious sense."

Mr Mittal condemned the Arcelor-Severstal deal and rejected claims by Arcelor management that it valued the group at 44 per share. He said it would open the way for Mr Alexei Mordashov, who will take a 32% stake in Arcelor through the deal, to assume full control of the group. Mr Mittal said "It is a creeping takeover done in fact below the current share price of Arcelor. If Mr Mordashov wants to take control of Arcelor, he has to launch an offer for the whole of its capital with a premium for shareholders."

He said he remained open to talks with Arcelor management but added "It isn't necessary to complete our approach. We hope for the most democratic process possible which offers a real choice to Arcelor shareholders."

Arcelor and Severstal would consider more acquisitions after joining forces to become worlds biggest steel company.

Severstal owner Mr Alexei Mordashov told reporters "We are creating a strong, effective company capable of giving value to its shareholders everywhere in the world. Of course we have real plans to grow. "We would be glad to participate wherever we see attractive possibilities. If such opportunities are in Russia, we'd gladly grow in Russia."

US steel industry, perceived as dirty and low tech in the eyes of Washington decision makers, is launching an ad campaign aimed at burnishing its image.

The new campaign, which kicks off in the first week of June, features four print advertisements highlighting different aspects of the industry its use of computer technology, its contribution to the US economy and military, job creation and its environmental efforts stressing that innovation and technology have transformed America's steel industry into one of the world's most competitive, sustainable and environmentally progressive.

The print ads portray positive features of the industry. One, carrying the slogan "The Brains Behind the Brawn" points out the technology revolution has helped modernize the industry and steelmakers spend $4 billion a year on computers and other technology. Another ad headlined "The Backbone of America" shows pictures of steel bridge girders and highlights the industry's military and economic importance. A third ad emphasizes the industry's role in creating jobs. The fourth ad with the slogan "The Clean Little Secret" depicts evergreen trees reflecting off a shiny, steel coil and says more steel is recycled each year than all other materials combined.

AISI is spending $1.4 million this year and $2 million in 2007 on the campaign, which also includes ads on Washington radio stations and on the Washington subway system. 33 North American steel producers are members of AISI, although financing for the campaign is coming only from the association's 20 US members. Aimed at politicians and congressional staffers in Washington, the ads will run in publications typically read by the political class such as Roll Call, National Journal and Congressional Quarterly.

Severstal will remain a Russian company even after its merger with Arcelor and retain its own identity.

Severstal Board Chairman & CEO and controlling shareholder Mr Alexei Mordashov said "It will remain a Russian company whose shares will be quoted on the Russian exchange and it will pay its taxes in Russia. 25% of Severstal's shares will remain under its control. Severstal's assets will be governed by Russian managers and Arcelor's assets will be governed by its managers.

Mr Mordashov also said Severstal plans to keep its legal status as a Russian company and there were no plans to change either company's name. Both companies are brand names. We don't plan to make any changes there."

China's safety watchdog State Administration of Work Safety has pledged to trim down 10,000 small coal mines almost half of the country's total small coal mines by the end of 2010. Chinese government is encouraging large state controlled coal mines to restructure small coal mines via mergers, acquisitions and share holding in a bid to strengthen management and enhance centralization of the sector.

Mr Huang Yi, spokesman of SAWS during a national energy forum said that currently there are still 21,000 small coal mines operating in China and that China will develop large coal production bases and large coal producing enterprises shutting down small mines. By 2010 the combined annual production capacity of China's 13 large state designated coal production bases will reach around 1.3 billion tons, accounting for half of the country's total.

China has been plagued by the problem of frequent coal mine accidents over the past few years. According to SAWS, two thirds of the country's coal mine deaths occurred in small mines that were backwardly equipped and poorly managed. From January to April this year, small coal mines, whose output accounted for only one third of the country's total, reported 763 deaths in 483 accidents.

The steel industry is closely monitoring moves in zinc prices as worries intensify about a possible market deficit.

Mr Douglas Brooks of Nucor Corp told Reuters at Metal Bulletin's zinc seminar in London that "At some time in the beginning of 2007, zinc supply is going to be so tight and the price will be astronomical and some people will not get their zinc. Eventually, zinc will be so expensive that people drop out, and then there will suddenly be plenty of zinc around."

He added that We will never see zinc at $800-$900 again."

Mittal Steel told PTI that the result of Arcelor's merger with Severstal would be a second class combination and only the Mittal -Arcelor combination offers true step change consolidation.

Mr Paul Weigh Mittal Steel spokesperson said that the Arcelor's shareholders are being forced to hand over control of their company whilst being denied a premium.

He retreated that yet again the board of Arcelor appears to be manipulating its shareholders base to its own ends and the vote to veto is unprecedented and prevents the shareholders from having a real choice in the future of their company.

Xstrata is planning to boost its coal presence in North and South America. Australia based business development manager for coal Mr Jeff Gerard will move to Halifax this summer as chief operating officer for Xstrata's American coal division.

Xstrata already has coal units in Australia and South Africa and is a major player on global coal scene.

A synergic effect from the merger of Severstal and Arcelor will be substantially more than 590 million euros ($750 million).

Mr Alexei Mordashov Severstal's CEO said "A synergic effect from the deal is expected at 590 million euros. But we see great potential for cutting production costs. The figure will be substantially higher."

Oasis Metal Manufacturing LLC, a subsidiary of Al Shirawi Group, has commenced the manufacturing of industrial steel gratings in UAE. The factory is located in Al Quoz Industrial Area and the new facility is equipped with advanced technology that can manufacture products at high speed and with quality to meet all internationals standards.

Mr Ali Abdulla Al Shirawi ED of Oasis Metal Manufacturing told a local daily that their production of steel gratings will meet the requirements of the regional market. He said "The investment of the Al Shirawi Group of Company in steel and other related sectors exceeded Dh 75 million. The steel gratings will fulfill the requirements of the market, which is growing at fast pace in line with progressive development of various economic sectors. The annual capacity of the factory will be enough for the UAE and region. About 70% of the product will be sold locally and the remaining 30% will be exported to various countries."

Oasis Metal Manufacturing is engaged in manufacturing a wide range of diversified products including galvanized and plain steel gratings which can be used in airport projects, water treatment plants, power generation and construction sector.

Al Shirawi group companies also include Al Ghazal Iron Works and Al Shirawi Trading.

The first forum of steel professions took place in Reims in France during May 11th to May 13th. Manufacturers, teachers and craftsmen mobilized to help young people and general public discover the variety of professions related to steel. One of the objectives of Plane Acier was to show students and apprentices career possibilities in a sector that generates employment.

Some 70 companies illustrated their know how through workshops and exhibits about their products. One of the main points of the event was the launch of a European sculpture competition Art is Steel.

Mr Guy DollCEO of Arcelor said "There is no human or economic activity that doesn't need steel."

Mr Jacques Dham president of Arcelor Distribution and initiator of this project said "Our mission is to make young people discover the modernity of our professions, their potential and their perspectives."

The laying of foundation stone for the $750 million Shadid Steel factory in the Sohar Industrial Port Oman took place. The construction works are expected to complete within 28 months effective from the date of laying the foundation stone.

Al Ghaith Holding Company is the main contributor to the project.

Sohar Industrial Port Company SAOC is a joint venture between the Government of the Sultanate of Oman represented by the Ministry of Transport and Communications and the Port of Rotterdam from the Netherlands and was established in 2002. SIPC manages the Sohar Industrial Port area as a landlord port manager. It facilitates the economic development of the industrial port area by providing the industries and other port users land and world class port infrastructure.

It is reported that Kazakh government has asked a team of British bankers to value Eurasian Natural Resources Corporation and explore a London listing. It is reported that ABN Amro and Credit Suisse are close to picking up the Kazakh mandate.

ENRC is majority controlled by Mr Patokh Chodiev, Mr Alijan Ibragimov and Mr Alexander Machkevich. ENRC had sales of $2.9 billion (1.5 billion) in 2005. Mr Vladimir Kim chairman of Kazakhmys recently bought a 25% stake in ENRC for $450 million. Its ownership is further complicated because the Kazakh government owns a controlling stake in ENRCs subsidiary companies and has powers to block a change of control.

The government is also considering whether to convert its stakes in a multitude of subsidiary operations into a stake in the holding company. Such a move would dilute the interests of other stake holders.

ENRC has already asked Deutsche Bank to carry out an independent valuation of the groups assets, which is understood to have told ENRC that as a privately owned company it is worth between $1.5 billion and $2 billion. If it were listed on the Kazakh exchange it would be worth up to $3 billion. But if it were floated in London it would be worth at least $5 billion. Some believe that, if its ownership structure were clarified, its value could reach $10 billion.

Under Mr Johannes Sittard ex Mittal Steel, ENRC has expanded into new minerals and countries including nickel in the Balkans and cobalt in Zambia. He is also guiding construction of an $800 million aluminium smelter in Kazakhstan.

Mr Vladimir Bukarev of Barshchevsky & Partners law firm commenting on the anticipated merger between Arcelor and Severstal told RBC that prior to the disclosure of all the terms and conditions of the Arcelor-Severstal merger, in particular, the details of the participatory interest of the Russian company's minority shareholders in the forthcoming deal, the stock value of Severstal Group subsidiaries should increase significantly and reach its highest possible level.

He believes that later on, after the deal is forged, everything will depend on the combined group's development and financial policy strategies.

International Coal Group Inc announced that Mr Maurice E Carino Jr and Mr Stanley N Gaines were elected to three year terms on the Company's board of directors at its annual meeting of stockholders.

Mr Carino is the former Manager of Federal Government Affairs for Bethlehem Steel Corporation and a former consultant for International Steel Group and General Electric. Mr Carino was a founding member of the Washington Coal Club.

Mr Gaines is a director and member of the audit committee of ModTech Holdings Inc a national designer and manufacturer of modular buildings. He also has held positions on the board of directors for several manufacturing companies.

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 11 active mining complexes, of which 10 are located in Northern and Central Appalachia and one in Central Illinois. ICG's mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers throughout the Eastern United States.