June, 27 2006
ISA writes to planning commission for iron ore mining rights
Indian Steel Alliance in a letter to Planning Commission said that the steel industry was highly perturbed over reports that the Hoda Committee set up to evolve guidelines on mining rights was in favor of scrapping grant of captive mines to domestic steel industry. Mr Moosa Raza president of ISA said in the letter "We are aware that the mining industry has been strongly averse to the grant of captive mines to the domestic steel industry on several grounds. It has been claiming that the grant of captive mines involves an inter sector subsidy and that the steel industry does not pass on this subsidy to the customer. The speciousness of this illogical argument is self evident and totally overlooks the fact of the immense value addition in the steel industry."
Mr Raza said that The mining industry paid the government a meager royalty ranging from Rs 7 to Rs 25 per tonne depending on the grade. As against this when the very same ore is converted into steel the domestic steel industry provides Rs 4,000 per tonne of steel produced in terms of excise and value added tax, a value addition of 10-15 times, permanent employment of more than 5-7 times and foreign exchange earning of 12-15 times as compared to the stand alone mines." Mr Raza said Even assuming without conceding that the captive mining entailed the benefit of extraction cost, it was difficult to swallow the argument that this benefit should go to enrich the miners rather the steel industry, which provided the backbone and sinews of India's infrastructure.
In response, Federation of Indian Mineral Industries says that all steel units engage in value addition irrespective of whether they have captive mines or not. Mr RK Sharma secretary general of Fimi said "When miners sell ore to steel mills which do not have captive mines the same value is added as from steel mills that get their iron ore from captive mines. So value addition and captive mining are different issues and cannot be confused with each other."
The Hoda Committee has been set up by plan panel under the leadership of Mr Anwarul Hoda to give a new direction to the country's mining sector. It acknowledges that allocation of captive mines to steel makers compromises the growth of the mining sector.
President outlines energy independence roadmap for India
Indian President Dr APJ Abdul Kalam while speaking at he said at a function organized by TERI termed energy independence as India's highest priority and said that power generation in the country needs to grow over three fold to 400,000 MW by 2030 from the existing 130,000 MW.
The President said with depleting reserves of fossil based oil, coal and gas reserves, alternate sources of energy needed to be seriously considered. Dr Kalam said "Energy independence has got to be achieved through three different sources namely hydel capacity, nuclear power and non-conventional energy sources primarily through solar energy, apart from thermal power."
Dr Kalam said that hydel capacity should contribute an additional 50,000 MW, solar energy farms would contribute another 55,000 MW, nuclear power plants should have a target of 50,000 MW of power and while the balance 115,000 MW has to be generated through the conventional thermal plants through coal and gas and other renewable sources such as wind power, biomass, municipal waste and solar thermal power,
INSDAG sees steel demand increase by 10%
The construction industry in India is all set to see an estimated 8% increase in steel production besides increasing consumption to 10%. Mr RKP Singh director general of Institute of Steel Development and Growth while speaking a seminar on Steel in Construction said that Despite being one of the largest producers of steel, we are one of the lowest consumers in the world. However, with the infrastructure boom, this will rise to 10% within a short span.
Mr Singh in his presentation said Compared to concrete, steel provides 10% more space. In urban areas, with airports, bridges, flyovers, multi storey buildings, multilevel corporate buildings, stadiums, exhibition halls and warehouses coming up, consumption of steel will rise. In addition to it being easily repairable structurally and so that it can be modified easily, steel has a better seismic resistance and is recyclable also.
Steel in Construction seminar was sponsored by Essar Steel. Mr Vikram Amin director of sales and marketing of Essar Steel said that the seminar is aimed at introducing not only some new concepts in construction, but also comprehensively showcase the emergence of steel as a primary building material in modern construction.
KEC gets 2 transmission line orders from PGCIL
KEC International has received new orders worth Rs 198 crore from Power Grid Corporation of India Ltd.
The first project is for supply and construction of a 200 kilometers long 500 kV High voltage direct current transmission line from Ballia to Sultanpur in Uttar Pradesh. This project is associated with the Ballia-Bhiwadi System under the Powergrid System Development Project.
The second project comprises supply and construction of a 122 kilometers long 400kV double circuit Transmission Line from Sagardighi to Parulia. The line will be constructed in West Bengal and is scheduled to be completed by February 2008. This project, valued at Rs 84 crore is associated with the Sagardighi Thermal Power Project.
Mr Ramesh Chandak MD said, "KEC has showed its best ever performance in 2005-06. KEC would continue to grow in both domestic as well as international markets by developing new markets, focusing on value chain expansion and improving operational efficiencies.
FICCI & CII congratulate Mr Mittal
Mr Saroj K Poddar of the Federation of Indian Chambers of Commerce and Industry expressed happiness that the management of Arcelor finally took a balanced and mature decision which was in their best interest. FICCI believes that it was an indication of the big role that industrial groups of Indian origin would play in the global economy in future, he said. With the Indian economy growing, FICCI said, more and more groups would acquire companies abroad to form global entities of Indian companies.
The Confederation of Indian Industry is also delighted at the successful culmination of Arcelor and Mittal Negotiations. Mr R. Seshasayee president of CII said that it is proud of the leadership of Mr Mittal, which has set a new benchmark in a globalizing world and in raising the banner of the power of the Indian enterprise.
Tuticorin port project gets environment clearance
Union ministry of environment and forests has given environment clearance for Inner Harbor Development Project at the Tuticorin port. The Rs 685 crore project's main portion is a dredging component of Rs 440 crore to improve the draught in the port to 12.8 meters from the present 10.7 meters to enable handling of panamax vessels. The project will also include construction of cargo berth number 9 at a cost of Rs 36 crore and dredging the dock basin. The project is likely to be completed in 2008.
It is reported that to get a draught of 12.8 meters, the harbor basin has to be dredged to a depth of 14 meters and the approach channel to 14.6 meters for a length of 4,100 meters. The port entrance needs to be widened to 230 meters from 152 meters by removing the existing pier heads and providing additional protective spurs.
The Tuticorin Port Trust has invited applications from dredging companies for pre qualifying for deepening the channel and basin.
Kalyani Steels appoints Mr Takale as Director
Kalyani Steels Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 26, 2006, has appointed Mr. Madan U Takale, as Director of the Company with effect from June 26, 2006.
Phelps Dodge to ink mega buy out of Inco & Falconbridge
Phoenix Arizona based Phelps Dodge Corp announced that it has agreed to acquire Canadian nickel miners Inco Ltd and Falconbridge Ltd for $40 billion in the world's largest mining takeover. Phelps Dodge will offer 0.672 of a Phelps Dodge share and C$17.50 in cash for each Inco share. The offer will allow Inco to increase its previously agreed takeover offer for Falconbridge to C$62.11 a share, Phelps Dodge said. Phelps Dodge will also spend as much as $5 billion buying back stock.
Inco and Falconbridge have become takeover prizes as a 3 year rally in metal prices increases values and earnings power. Nickel prices in London have climbed 42 percent since Jan. 1. Mining companies, flush with cash, are considering acquisitions to gain market share. Phelps Dodge, with mines in Arizona and New Mexico, stands to gain nickel production in Canada and copper in Chile.
Tim Huff, an analyst in London at ABN Amro Holding NV, said in an interview A lot of these guys are going to have even more cash this year, and are looking at deploying that cash. It's a really smart move on the part of Phelps.''
The purchase will eclipse BHP Ltd's $13.2 billion purchase of Billiton Plc in 2001, which created the world's largest mining company. It will also be larger than Mittal Steel's proposed $33.8 billion purchase of Arcelor SA.
Inco rejected a May 8 hostile C$15.2 billion ($13.6 billion) takeover bid by Canada's Teck Cominco Ltd and urged investors to support its Falconbridge offer, which was agreed to in October. Five days later, Inco sweetened its Oct. 11 cash and stock offer, which values Falconbridge at C$17.9 billion based on Inco's Canadian share price. Switzerland's Xstrata Plc last month offered to buy the 80% of Falconbridge it doesn't already own for C$52.50 a share.
Arcelor to go by terms of SAA with Mr Alexey Mordashov
Arcelor has vide a release said that as announced on May 26, 2006, Arcelor entered into a Strategic Alliance Agreement with Mr Alexey Mordashov and that this agreement remains enforceable despite Arcelor's Board of director's recommendation of Mittal Steel's revised offer. Arcelor shall fully abide by its commitments and obligations under the SAA, including by maintaining the June 30 shareholders meeting which is designed to allow Arcelor shareholders to express their views vis-vis the Severstal transaction. The SAA provides that such shareholders meeting cannot be adjourned of cancelled by Arcelor.
Arcelor invites all shareholders wishing to express their views on the Severstal transaction, as announced on May 26, to participate in such meeting in person or by proxy and reminds them that the ultimate date for the filing of the appropriate documentation and voting instructions is June 28, 2006.Arcelor indicates that until such date, shareholders may change or amend any voting instructions they would have already sent, in the same way as they sent the original ones.
Arcelor reiterates that the SAA may be terminated in particular in the following manners
1. By mutual consent of the parties
2. By Mr. Mordashov following the recommendation by the Board of Directors of Arcelor of the revised Mittal Steel offer
3. By both parties in the following events
(A) At the June 30 shareholders meeting, shareholders representing more than 50% of the outstanding share capital of Arcelor shall have voted against the Severstal transaction
(B) In case Mittal Steel acquires 50% or more of the shares of Arcelor on a fully diluted basis, i.e. including the shares issued or to be issued to Mr. Mordashov, as applicable
The statement said that as previously announced on June 19, 2006, the Board of Directors of Arcelor reserved the right to convene and extraordinary shareholders meeting in order to allow its shareholders to decide on the distribution to the Arcelor shareholders of Euro 6.5 billion in case the Mittal Steel offer was not successful. Arcelor indicates that if the now recommended revised Mittal Steel offer was successful, it shall not proceed with such distribution.
Arcelor CEO Mr Guy Dolle to be replaced
Arcelor and Mittal Steel merger claimed its first victim with an announcement that Arcelors CEO Mr Guy Dolle would be replaced.
Arcelor chairman Mr Joseph Kinsch told in a press conference in Luxembourg held jointly with Mr LN Mittal that the combined steel group, to be known as Arcelor-Mittal, is to name a new chief. Mr Kinsch told reporters "I have spoken to Guy Dolle and he thinks that to implement the merger we should now choose a new chief executive."
Mr Dolle, 64 and due to retire in 15 months, had been scathing in his initial reaction when Mittal Steel's offer was announced in January, denigrating its products and the value of its assets. For the next five months he scrambled to fortify Arcelor's defenses, promoting a merger with Severstal in hope of creating an entity too big for Mittal Steel to swallow.
Mr Abramovich likely to give its best shot for Arcelor
Mr Alexei Mordashov on Monday appeared to be plotting his next move after his bid to become the biggest shareholder in Arcelor looked to have been trumped by Mr LN Mittal. Faced with a U turn by the previously supportive Arcelor board, which voted unanimously to back Mittal Steel after a nine hour meeting on Sunday, Mr Mordashov offered no public response.
Following talks in the last few days between Mr Mordashov and financiers Mr Roman Zalenski and Mr Jose Maria Aristrain, two of the biggest shareholders in Arcelor, Severstal are expected to announce yet another improved offer, a source familiar with the situation said late Monday.
According to a Russian daily Izvestia Mr Alexei Mordashov has forged an alliance with Mr Roman Abramovich to offer a higher price for Arcelor shares. One of the business dailies Vedomosti has pointed out that Mr Mordashov's alliance with Mr Abramovich would be his last chance to woo Arcelor's shareholders. But a senior manager at a Russian steel company, speaking on condition of anonymity, cast doubt on Vedomosti's claim, saying Mr Abramovich enjoyed closer ties to Mr Mittal than to Mr Mordashov. A spokesman for Mr Abramovich's Russian investment vehicle, Millhouse, said Monday that Mr Abramovich and his partners were just new shareholders in a major steel company and had no further plans for the moment.
However Mr Francois de Rambuteau a fund manager with Cholet-Dupont Gestion in Paris which manages $2.3 billion in assets including Arcelor shares said "I would not say that Mr. Mordashov is out. I'd say he is in a difficult situation." Half of Arcelor's shareholder base still needs to vote down Severstal's offer at a June 30 meeting for it to be termed null and void. The shareholders will also vote on Mittal Steel's latest offer, which was improved to placate the anxieties of Arcelor's board and to attract shareholders with a bigger payout.
Russians criticize Arcelor-Mittal merger
Russian politicians have criticized Arcelor's rejection of a merger with Severstal saying that the decision showed anti Russian bias in international markets. Industry and Energy Minister Mr Viktor Khristenko led a chorus of disapproval from prominent Moscow officials when he said double standards were in evidence with regard to Arcelor's decision to pick Mittal Steel over Severstal. He said "I am completely dissatisfied with this decision and regard it as a bad sign."
State Duma Speaker Mr Boris Gryzlov said in a statement "I consider the events taking place around this deal as an example of Russian business facing serious obstacles when trying to expand into global markets. The unprecedented propaganda campaign that has been launched around the merger of Russian company Severstal with Europe's Arcelor shows that people don't want to let us into global markets."
Mr Alexander Shokhin head of the Russian Union of Industrialists and Entrepreneurs was quoted by agencies as saying that "It looks like some people don't want to see Russia as a strategic partner in some countries."
Russian business daily Kommersant has argued that ahead of the G-8 Summit in St Petersburg next month, Arcelor has seriously complicated EU-Russia relationship. Kommersant reminded that President Mr Vladimir Putin has linked the ratification of Energy Charter, much sought by the European Union, to transparent access to Russian companies.
Izvestia daily wrote "It is already obvious that in this battle for world steel supremacy Russian business was shown its place. Lakshmi Mittal fully exploited the Russian menace myth in negotiating with Arcelor shareholders, and apparently found common ground with the Europeans."
ThyssenKrupp expects Mr Mittal to honor deal on Dofasco
ThyssenKrupp AG said it expects Mittal Steel to honor the agreement reached in January under which the German steel maker would acquire Arcelors recently acquired Dofasco in the event of a successful takeover of Arcelor by Mittal Steel. A company statement said
ThyssenKrupp assumes that Mittal Steel will honor this commitment and complete the disposal immediately following closing of the Arcelor transaction.
Arcelor remains opposed to the idea of selling Dofasco. But industry sources said Mittal Steel is holding on to its plans to sell Dofasco and that this issue will be discussed when the two companies hold their first joint meeting to thrash out the details of their merger. An Arcelor shareholder vote is scheduled for Friday, after which Mittal and Arcelor said they will revisit the Dofasco issue.
Mr Aditya Mittal said during a news conference in Luxembourg on Monday that We have a binding agreement to sell Dofasco to ThyssenKrupp, we have had long discussions with Arcelor and its management board and we have agreed to disagree. Arcelor believes that Dofasco is specifically their interest, we believe it is not, we have a binding agreement with ThyssenKrupp, as well as a requirement with the department of justice."
The price was at the time set at C$68 per share.
Vietnam outlines long term iron ore mining plan
Vietnam will intensify exploitation of iron ores by 2020 to meet its increasing demand for the material. A master plan on meeting Vietnams growing demand for iron ore was recently approved by Prime Minister Phan Van Khai. The plan for iron ore exploitation and processing maps out a strategy for the sector up to 2010 and also sets out a direction for the industry towards 2020
To meet the demand of 16mil tonnes of iron Ore by 2020, the plan has targeted investment capital of nearly VND7 trillion ($437 million). Vietnam government has approve a plan to increase the iron ore capacity to 9 million tons of ores in 2010, 14-15 million tons in the 2011-2015 period, and 15-16 million tons between 2016 and 2020. Vietnam will exploit 26 iron ores in the eight northern provinces of Lao Cai, Yen Bai, Ha Giang, Tuyen Quang, Cao Bang, Bac Can, Thai Nguyen, Thanh Hoa and the central province of Ha Tinh.
The master scheme focuses on four major targets
1. To meet demand for raw materials for domestic metallurgy manufacturers
2. To set aside some iron ore for export in exchange for coke
3. To conduct geological surveys for potential ore sites
4. Prepare enough documents on iron ore reserves and quality for exploitation; and zone ore sites to ensure ore surveys and exploitation are carried out in accordance with the law.
BlueScope reported to be eying Smorgons distribution business
BlueScope Steel is reported to be considering buying Smorgon Steel's Australian distribution business. For BlueScope which also sells flat steel products into the dominant OneSteel and Smorgon networks buying the Smorgon network would be an opportunity to extend its downstream market reach.
BlueScope is believed to have examined the business in 2003, when OneSteel and Smorgon were exploring options to align. However, a BlueScope spokeswoman wasn't commenting yesterday. "We don't have a view on the deal," she said.
In a move to head off opposition from the competition watchdog, OneSteel plans to divest Smorgon's distribution business through a spin off to shareholders of the merged group.
Other potential buyers include New Zealand's Fletcher Building and Sydney based metal recycling giant Sims.
Baosteel and Shanxi Coking sign for a coking coal project
Shanghai Baosteel Group and Shanxi Coking Coal Group have announced signing of an agreement for setting up a 2.1million ton coal project in Huozhou in Shanxi Province. The project will be constructed in the Ganhe Coal Mine owned by southern Shanxi's Huozhou Coal & Electricity Co Ltd a controlling subsidiary of Shanxi Coking Coal.
A Baosteel spokesman said that the two companies have not yet settled on the size of the investment and share distribution for the project.
Headquartered in Taiyuan in Shanxi, Shanxi Coking Coal is the largest coking coal producer in China and a long term supplier to Baosteel. Baosteel needs more than 10 million tons coking coal per year. Shanxi Coking Coal plans to produce 70 million tons raw coal this year and 120 million tons raw coal in 2010.
Baosteel raises steel prices for August deliveries
Baoshan Iron and Steel Co Ltd China's largest steelmaker has announced increase of prices for steel plate and sheet for August. Baosteel on Monday raised prices for medium plate by between 2% to 8% following a 5% price increase for PPGI over the weekend.
Bao Steel normally adjusts prices once a quarter, but this year it has made several monthly price adjustments as domestic steel prices recovered from a nine month slump last year.
CSNs BF shutdown reduces Brazils May steel output
Brazilian Steel Institute has announced that Brazil produced 2.5 million tons of raw steel in May, 3.3% more than in April but 9% less than in May, 2005. The reduction was attributed to the shutdown of CSNs blast furnace which has been idle since February.
IBS said that domestic sales of 1.52 million tons in May 2006 registered 13.7% growth over May 2005 due to greater demand in the automotive, industrial construction and capital goods sectors.
Exports totaled 813 thousand tons, 7.9% less than in May, 2005. The IBS deems that priority was given to the domestic market.
Arcelor used Severstal to soften up Mittal Steel
Russian news papers have said that Arcelor cunningly used a rival merger bid by Severstal to shoehorn Mittal Steel into the improved offer. the Nezavisimaya Gazeta daily wrote "By courting both Mordashov and Mittal, the Arcelor management completed a brilliant operation that boosted the deals final value and forced the unyielding Indian to pay up and agree to some important compromises."
The daily added "By loudly advertising a possible merger with Severstal, Arcelor managers effectively used Mordashov as a battering ram in bargaining with Lakshmi Mittal, who tried a hostile takeover of Arcelor."
ThyssenKrupp to restart SS CR mill shortly
The fire which broke out last Thursday in cold rolling mill of Krefeld plant of ThyssenKrupp Nirosta GmbH and has affected two production lines seems to have been caused by a technical defect in the annealing and pickling line as per initial investigations.
Work in the rest of the plant has been resumed. The production lines affected by the fire will have to be replaced and will take several months. Until then ThyssenKrupp Nirosta will use production capacities in Dsseldorf-Benrath and Dillenburg and sister companies ThyssenKrupp Acciai Speciali Terni in Italy and Shanghai Krupp Stainless in China.
Dr Jg Beindorf CEO of ThyssenKrupp Nirosta said "We are working flat out to resume production in the affected area as quickly as possible. Thanks to the support of the ThyssenKrupp Stainless AG network we remain operational and can continue to meet demand for stainless steel products."
Shagang & Fosun sign accord for strategic cooperation
Two private steel mills in eastern China Jiangsu Province based Shagang Group signed a deal with Shanghai's Fosun Group over the weekend as both move to strengthen their competitiveness. The accord also allows them to cooperate in areas like purchase of raw materials such as iron ore, coking coal and steel scraps.
Their cooperation is also a sign that more privately run mills will form alliances via regrouping and restructuring to gain better market share in the domestic steel industry which is largely controlled by state owned companies.
Shagang, with annual steel production of 15 million tons, is located in Zhangjiagang, a port city along the Yangtze River. Fosun, a retail property steel conglomerate, controls Nanjing Iron & Steel United Co in Jiangsu Province.
OMK to double wide plate purchases from Dillinger
The United Metallurgical Company plans to double purchases of steel plates from Germany's Dillinger Huette in 2006-2007 for production of large diameter pipes.
Mr Vladimir Markin president of OMK said in the release that OMK plans to increase metal orders because "we are participating in the construction of the land section of the North European Gas Pipeline, and are preparing for the tender to supply large diameter pipes for the underwater section of this project. The construction of the Eastern Siberia - Pacific Ocean oil pipeline and the development of the Shtokman deposit are also key projects for us. I think that Dillinger Huette is one of the best prepared manufacturers of wide sheet for these projects. We will also work with Japanese and Korean producers, but for now Dillinger Huette is the core supplier for us."
Dillinger Huette is a major supplier of wide plates for production of large diameter pipes at VMZ. OMK bought more than 100,000 tonnes of plates from Dillinger last year.
Angang New Steel to change name to Angang Steel Co Ltd.
Chinas Angang New Steel Company Limited held shareholder meeting for 2005 on June 20 and passed proposals such as change of corporate name as well as electing the 4th directors of boards and supervision. According to the proposal from the current meeting, the name of Angang New Steel Company Limited (short for ANSC) will change to Angang Steel Company Limited (short for ANSTEEL).
In January 2006, Angang New Steel purchased 100% equity of Angang Group New Iron and Steel Co Ltd having main businesses of Angang Steel listed on the market.
Sphere Investments to focus on iron ore
Iron ore developer Sphere Investments Ltd plans to spin off two new companies based on its base metal and energy assets, as it focuses on advancing its Mauritanian iron ore project. Sphere said its gold and base metals exploration projects in Mauritania would be spun into a new company, Shield Mining Ltd. The oil and gas assets in Mali held by Sphere will also be spun off into a new company.
The cost of developing the project was estimated at between $900 million and $1 billion. Sphere is getting 50% stake in the project from Mauritania's existing iron ore producer Societe Nationale Industrielle et Miniere, by funding the staged $11 million bankable feasibility study. Sphere and SNIM are hoping to fund the development of the project by selling equity stakes, possibly to Hadeed and the Qatar Steel Company. Together the two steel makers already own 17.2 per cent of Sphere.
AK Steel workers to vote on union by end of July
An election to determine whether AK Steel Corp. workers will affiliate with a new union won't take place until the end of July. The National Labor Relations Board last week said that the Armco Employees Independent Federation, which now represents the workers, the International Association of Machinists and the United Steelworkers of America have one week to submit their suggestions on how to conduct the election, and a date will be set for 25 to 30 days thereafter.
The company and USWA both prefer the upcoming unionization vote to be held through the mail. However, the AEIF and IAM want workers to vote in person at one site.
More than half of AEIF's members have signed petitions to join the International Association of Machinists and Aerospace Workers.
Workers at the Middletown plant have been locked out since March 1, when their contract with the company expired with no new deal in place.
Coke export from Shaanxi down in May 2006
The Shaanxi Bureau of Commerce has released statistics stating that coke exports from Shaanxi province during May 2006 reduced by 20.2% as compared to May 2005 and stood at 490,000 tons.
The export price of the coke was up by $23 per ton as compared to January 2006 levels. The price increase was driven by strong domestic steel prices and global demand. Supply is also tight and coke stocks in Tianjin port have decreased to 1 million tons as against highest stock levels of 5 million tons last year.
Timken to Increase Specialty Steel Prices
The Timken Company announced that its Timken Latrobe Steel subsidiary will increase prices by 3% to 7% on all remelted aerospace alloys. The price change will be effective immediately for all new inquiries and beginning July 1, 2006, for all new orders. Raw material surcharges will remain in effect.
Mr Hans J Sack president of Timken Latrobe Steel said "This price increase will enable Timken Latrobe Steel to recover the increasing operational costs that we are experiencing throughout our entire manufacturing process so we can continue to invest in capacity to improve our response to market demands."
OMZ supplies BF jacket for Severstal
Uralmash-Izhora Group announced that its OMZ-Uralmash division has completed construction of a jacket for Europes highest capacity BF Severyanka No 5 at Severstal. The equipment for the jacket was supplied by Uralmashzavod. The contract for more than $4.6 million was signed in June 2005 following a tender. This is the second jacket produced by Uralmashzavod for Severstal. The first was supplied in early 2005.
Engineering for the jacket was undertaken with the participation of LENGIPROMEZ OJSC and Danieli & C Officene Mecaniche SpA.
Blast furnace #5, originally launched in 1986, was stopped in May 2006 for major repairs and reconstruction. Severstal plans to invest US$83 million into re equipment of the furnace. The work is aimed at allowing for a further 12 years of continuous operation. Production is expected to reach approximately 4 million tons of metal per year as compared with 3.8 million tons prior to reconstruction.
OMZ is one of the largest heavy industry enterprises in Russia. It specializes in engineering, manufacturing, sales and maintenance of plant, equipment and machinery for the nuclear power industry, and also producing special steels and providing industrial services. The company comprises the divisions of OMZ NPPEQ, OMZ- Spetsstal, OMZ-MINEQ and OMZ Uralmash-Promuslugi, located in Russia and in the Czech Republic at Skoda Steel and Skoda JS.
Crew Gold signs option to buy Philippine coal mine
Crew Gold Corp announced that through its 100% owned subsidiary, Crew Minerals AS it has secured an option to buy a 95% stake in Daguma Agro Minerals Inc, which owns a 2,000-hectare coal field in South Cotabato in the Philippines. Under the deal, Crew will initially pay $150,000, entitling it to conduct a 3 month due diligence review of Daguma's business. It will pay up to $ 24 million in cash and shares should it decide to exercise the option.
The mine has an estimated measured resource of 28 million tonnes, though Crew said it will independently verify this data as part of the review. The South Cotabato coalfield, and particularly the DAMI property, is a recent discovery to the Philippines and now considered potentially to host the largest coal deposits on the country according to a comparative report by the Department of Energy.
Zamil Steel Vietnam to build plant for Canon in Vietnam
Zamil Steel Vietnam a JV between Zamil Steel Industries of Saudi Arabia and Mitsui of Japan has signed a contract to design and build a plant for a Canon factory in Tien Son Industrial Zone in northern Bac Ninh province. Under the contract Zamil Steel Vietnam will supply 3,000 tonnes of steel products to build a 40,000 square meters plant for Canon.
Canon's jet printer production factory in Tien Son Industrial Zone is its third in Vietnam. The construction started in May. The factory is to be among its largest worldwide.
Workers union seeks meeting over OneSteel & Smorgon merger
The union representing manufacturing workers is urgently seeking meetings with OneSteel and the Smorgon metal recycling group to discuss their proposed merger.
Ms Melissa Kennedy of the Australian Manufacturing Workers Union's said that the two companies employ more than 1,200 people at their Newcastle sites, and the union is concerned about their job security. She said "They certainly said that they were happy to discuss any questions that the unions have so we'll certainly be taking up their offer."
Strike at Drummond's Mina Pribbenow ends
Labor strike at Drummond's Mina Pribbenow has come to an end during last week after 5 weeks of negotiations between Drummond, union members and the Minister of Labor. Union workers returned to the job on last Friday.
The strike by several thousand coal miners began May 22 over salary, pension, healthcare and community issues.
The impact of the strike is estimated to have cost Drummond around 2.25 million metric tons in lost production.
