ISA urges PM to intervene for stopping iron ore export

The Indian Steel Alliance has written to Prime Minister Dr Manmohan Singh's highlighting the implications of the Hoda Committee's recommendations and has sought his intervention to stop the export of iron ore saying that if continued it will restrict the growth of Indian steel industry. Mr Moosa Raza president of ISA wrote "It is clear that by encouraging export of iron ore and throttling of steel exports, we are transferring India's competitive advantage to China, Korea and Japan. In the process we are going back to a colonial economy, becoming a mere supplier of commodities and importer of finished product."

Mr Moosa Raza pointed out that iron ore rich nations like Ukraine, Kazakhstan, the US and China do not export any ore while India was exporting 90 million tonnes annually. He warned that "Exports are going up annually at 15% depleting our meager ore reserves at an alarming pace." Mr Moosa Raza said that "By exporting such large quantities of iron ore, we are giving wrong signals to prospective foreign direct investment. If iron ore of high quality is accessible in the international market, what is the incentive for FDI to come to India."

Mr Moosa Raza suggested that In the light of these considerations, ISA strongly urges that government take a serious look at restraining the growth of iron ore export and taper it off within a reasonable period. Let not the future generations be deprived of such a strategic product as steel, condemn us for having frittered away our long-term assets for immediate trifling gains. Let not history blame us that we sold our birthright for a mess of potage.

TATA MD: India must enhance steel production to 100 million tonnes

Mr B Muthuraman MD of TATA Steel on the occasion of the 60th AGM of the Indian Institute of Metals said that India must aim to enhance its steel production to over 100 million tonnes by 2020. Mr Muthuraman said We are in a position to produce over 100 million tonnes of steel and we must do it. If China can produce nearly 300 million tonnes of steel every year, why cant India?

Mr Muthuraman said that the per capita steel consumption in India should be increased from the present level of 30 kilograms. With hectic activity in all round development of infrastructure projects, including roads, ports, airports, railways and housing, India should sustain a consistent overall growth rate of about 9%. He said that there would be roadblocks and problems, but these were common in other countries also, even China faced it.

POSCO official face villagers wrath

It is reported that an officials of POSCO along with a journalist from South Korea, while on a visit to proposed steel project site in the Dhinkia village on Thursday, were detailed by anti POSCO activists from the village for almost an hour and were later released by the intervention of local police.

The local police said that Hundreds of anti-POSCO activists mostly from the Dhinkia village spotted them and forcibly brought them to their village. They detained them for about an hour. We had earlier told them not to enter into the region without intimating us but they did not listen.

POSCO has signed the MOU for setting up a mega steel plant with the Orissa government in June 2005 but there has not been any significant progress on the project due to local opposition. Thousands of people from around six villages in the area are opposing the project as they say that it will not only displace them but also ruin their livelihood.

SAILs BPSC to set up 500 MW power plant

It is reported that Steel Authority of India Ltd and Damodar Valley Corporation power 50:50 JV Bokaro Power Supply Company Pvt Ltd plans to increase its capacity through a 500MW Greenfield project to cater to the power demands of Bokaro Steel Plant, Durgapur Steel Plant and IISCO Steel Plant. As per reports the proposal would be placed before the respective boards of SAIL and DVC for formal clearance by the end of this month.

As per reports the proposed new power plant would be spread over 750 acres in Jharkhand and would have two units of 250 MW capacities each. The total cost would approximately be Rs 2,200 crore and would be funded through debt and equity.

Bokaro Power Supply Company was formed in January 2002 and it is now managing a 302 MW generation unit and 1880 tonnes per hour steam co generation facilities of Bokaro Steel Plant.

TATA Steels tube business aims at 70% growth

TATA Steel's tube division is expecting a growth of around 70% during 2006-07 and 2007-08. Mr Vivek Kamra chief of tubes business told media that "Last year the sales were around Rs 120 crore and this year we are expecting around 70% growth and the same amount of growth next year."

Mr Vivek Kamra said "Tata Structura has grown by 65% in this financial year over the previous year. Our plan is to sell 70,000 tonnes in full 2006-07 which would be 85% growth."

TATA Steel had earlier this year launched branded hollow steel products including pipes and square and rectangular hollow sections under the brand name Tata Structura.

SBI opens first Indian banks branch in mainland China

India's largest commercial bank State Bank of India announced that its new branch in Shanghai has been opened for business on Thursday. SBI Shanghai Branch is currently the only Indian bank operating on the Chinese mainland.

Mr Om Prakash Bhatt chairman of SBI said that initially the new branch will cater to Indian companies and individuals in China but hoped that the Shanghai branch would be allowed to expand and to do business with Chinese companies and individuals. He also promised to open more commercial branches in China in the future.

Road transportation outperforms Indian Railway in last 5 years

A study carried out by the Indian Foundation of Transport Research and Training has concluded that the volume of goods handled by the road transport sector has grown by 53.1% in the last five years, while that hauled by the railways has grown only by 30.6%.The study also reveals that the share of the freight moved by the road transport sector during this period has grown by 2% to 77.54%.

During the last 5 year the road transport sector has added a fleet of 10.60 million goods carriages leading to 822 million tonnes of capacity additions while the Railways has increased its capacity by 8% to 10%.

IFTRT study concludes that road transportation has outperformed the Indian Railways even though the cost of transporting goods through road has grown by around 66% in the last five years as against 8% to 10% increase in railway freight charges.

Government approves East-West Power Transmission scheme

Indian Government has shown green light to the Power Grid Corporation of India Ltd to set up East-West Power Transmission Corporation. The estimated cost of the project is Rs. 803.70 crore. The scheme is scheduled to be implemented in 36 months from the date of investment approval.

Under this scheme high capacity interconnection between Eastern Region and Western Region will be provided to help in transferring additional power from Eastern Region to Western Region and maintaining security and stability of the interconnected grid.

Update on National Highways Development Projects

Mr KH Muniyappa minister of state for shipping, road transport and highways updated the Rajya Sabha about the status of National Highways Development Project as on June 30th 2006.

Mr KH Muniyappa said that the progress of NHDP Phase IIIA is in progress as per the schedule and the target date for completion is December 2009.

Lloyds Steel allots preferential shares to IDBI

Lloyds Steel Ind has informed that the company allotted 12.95 lakh redeemable preference share of Rs 10 each at par to be redeemed with a premium of 11.5% commencing from the financial year 2016 to Industrial Development Bank of India by conversion of part of their existing loans and advances by way of preferential issue on private placement basis.

CVRD announces all cash offer to acquire Inco

Companhia Vale do Rio Doce announced that it intends to make an all cash offer to acquire all of the outstanding common shares of Inco Limited at a price of C$86 in cash per Inco common share. CVRD expects to formally commence its offer by newspaper advertisement on Monday, August 14, 2006. The offer will be open for acceptance for 45 days following its formal commencement and no Inco common shares will be taken up and paid for pursuant to the offer unless, at such date, each of the conditions of the offer is satisfied or waived.

Completion of the offer will be subject to a sufficient number of shares being tendered to the offer such that CVRD would own at least 66 2/3% of Inco's common shares, on a fully diluted basis, following completion of the offer. The offer will be also conditional upon the receipt of all necessary regulatory approvals, the absence of litigation, no material adverse change at Inco and other customary conditions.

The acquisition will be financed through a 2 year committed bridge loan facility provided by four large first tier banks Credit Suisse, UBS, ABN AMRO and Santander. CVRD expects to take out the bridge facility with a long term capital package within 18 months after the closing of the proposed transaction.

A CVRD statement said The combination of CVRD and Inco will create one of the three largest diversified mining companies in the world, with leading global market positions in iron ore, pellets, nickel, bauxite, alumina, manganese and ferroalloys and an exciting world class pipeline of projects, supported by a large scale, long life and low cost asset portfolio. CVRD has not yet held any discussions with Inco's management with respect to this transaction but would welcome the opportunity to work with Inco to achieve a successful outcome to this transaction.

Mr Roger Agnelli CEO of CVRD said: "This is an exciting opportunity for CVRD. The operations of the two companies are complementary and the combination will enhance our capabilities to benefit from the fast changing global landscape in the metals and mining industry. For Inco shareholders, our all-cash offer provides a very attractive opportunity to realize substantial gains with no exposure to market risks".

Canadian Inco is the world's second largest nickel producer possessing the world's largest nickel reserve base. Inco is one of the world's lowest cost producers of nickel and due to a very attractive pipeline of projects it has the highest growth potential amongst the main global nickel producers. Inco is also a leader in nickel technology with a very traditional brand name and premium products for plating, special nickel alloys and super alloys. Inco had revenues of $ 4.518 billion and net earnings of $ 836 million in 2005. Inco's total debt as of June 30, 2006 was $ 1.921 billion.

Vancouver based Teck Cominco had announced on July 31st in its revised offer that it will offer C$82.5 per share in cash or 1.1293 Teck Cominco Class B subordinate voting shares plus five cents for each Inco share. Teck said it will pay up to a maximum of $9.1 billion in cash and issue up to 132.3 million shares under the new offer, an increase in the cash component of $2.7 billion or 43%, in comparison with Teck Cominco's original offer.

ThyssenKrupp announces carbon & SS steel projects in US

ThyssenKrupp Steel AG and ThyssenKrupp Stainless AG plan to jointly build a new plant in the USA. At its meeting today, the Supervisory Board of ThyssenKrupp AG approved a project development budget of US$50 million, to be used to commission consultancy and engineering services, prepare the choice of site and purchase the real estate. The ideal site is being sought for this joint plant complex. Three potential locations have now been identified in the southeastern states of Alabama, Arkansas and Louisiana.

The project involves construction of a hot strip mill which will be used primarily to process slabs from the new CSA steel mill in Brazil. The new plant will also feature cold rolling and hot dip coating capacities for high quality end products of flat carbon steel. ThyssenKrupp Steel's investment in the plant, which will have an annual capacity of 4.5 million tons of end products, is estimated at Euro 1.8 billion.

In addition, ThyssenKrupp Stainless plans to build a melt shop with an annual capacity of up to 1 million tons of slabs, which will be processed on the hot strip mill. A cold rolling facility is also to be erected which, in the first phase, will be designed to produce 325,000 tons of cold strip and 100,000 tons of pickled hot strip. Furthermore, ThyssenKrupp Mexinox will be supplied with hot strip from the USA as starting material. The volume of investment by Stainless is expected to be Euro 500 million.

This Greenfield project is intended to significantly strengthen their position in North America. The NAFTA market is one of the biggest volume markets for high grade flat carbon steel. Above average growth is forecast in the coming years for stainless steel flat products.

The executive board will continue negotiations in the next few days on the acquisition of the Canadian steel producer Dofasco. In January 2006, ThyssenKrupp signed an agreement with Mittal Steel under which Mittal Steel undertook to sell Dofasco to ThyssenKrupp AG in the even of a takeover of Arcelor.

CSC planning to reach 20 million tonne capacity in 6 years

It is reported by Economic Daily News that Taiwan's largest steel maker China Steel Corp plans to invest T$220 billion ($6.7 billion) to increase its output to 20 million tonnes per year from the current 14.40 million tonnes over next 6 years citing Mr LM Chung executive VP of CSC.

Mr Chung said that Taiwan imports about 7 million tonnes of steel products a year to close the supply demand gap. He said "Demand for steel products in the domestic market still surpasses supply. We expect the shortage to be alleviated after the expansion."

China Steel Corp alone makes some 11 million tonnes of products a year and its new unit Dragon Steel Corp is building a new blast furnace scheduled to begin operations in 2009 with an annual capacity of 2.5 million tonnes, Chung said. Mr Chung said that Dragon Steel also plans another furnace project and investment in HR production, while China Steel Corp will expand its CR and long product capacity.

Angang to build 5 million tonne flat products mill

Chainas2nd largest steelmaker Angang New Steel has received government approval to build a new 5 million tonne steel plant at Bayuquan Port in Yingkou at an investment of 22.6 billion yuan ($2.8 billion). The new facility's commercial operation is expected to commence in 2008 and generate profits in 2009.

The proposed steel plant is also expected to produce 4.88 million tonnes of steel products including 2 million tonnes of heavy plate, 1.92 million tonnes of HRC and 0.96 million tonnes of CR. Angang said in a statement to the Hong Kong stock exchange that "It is expected that the shipbuilding, heavy machinery, automobile, energy and petrochemicals industries in China will experience further growth and that the consumption rate of steel plate will continue to increase,"

The company said that the project will be funded through internal resources, bank loans and other financing activities. Of the 22.6 billion yuan expenditure, 8 billion is expected to be invested this year, 12 billion yuan next year, and 2.6 billion yuan in 2008. The project is also expected to have internal yield of 12.1% and investment payout period of 5.9 years, excluding the construction period.

EU hikes Ukrainian steel export quota by 6% for 2006

It is reported that The European Union on August 10 sanctioned a 6% increase in Ukraine's quota to export steel to Europe for 2006. The increase represents 60,480 tonnes of steel carried over from 2005. The decision enters into effect on August 20. The quota is being increased in line with a 2005 agreement on steel trade between Ukraine and the EU, which states that unused quotas of up to 15% can be carried over from one year to the next.

Ukraine and the EU signed an agreement on July 29th 2005 by which the EU will allow Ukraine to ship up just over 1 million tonnes in 2006. The quota will be effective as long as Ukraine keeps its Euro 30 per tonne export duty on scrap metal. The steel quota will be relaxed in proportion to any reduction in the duty and by 43% if Ukraine abolishes the duty on scrap. The quotas may also be relaxed if Ukrainian operators open service centers in the EU.

The quota does not apply to EU imports of Ukrainian flat and long products intended for the ship building industry or the construction and renovation of drilling rigs or platforms.

ThyssenKrupps income before tax in Q3 up by 39.6%

ThyssenKrupp has achieved its highest ever quarterly income before taxes of Euro 806 million in the 3rd quarter of fiscal year 2005-06 as against Euro 577 million in Q3 of 2004-2005. Order intake from continuing operations reached Euro 12.4 billion 18% higher than the same quarter a year earlier. Sales from continuing operations increased to Euro 12.1 billion up by 8% as against Q3 of last fiscal.

For the 9 month period, Income from continuing operations before taxes rose to Euro 2.004 billion from Euro1.555 billion a year earlier ago period. Order intake from continuing operations totaled Euro 36.8 billion in the first nine months as against Euro 32.6 billion in the prior year period. Sales totaled Euro 34.9 billion in the first nine months as against Euro 32.0 billion in prior year period.

Dr Ekkehard Schulz executive board chairman of ThyssenKrupp AG said "We expect the generally positive business performance to continue in the further course of the year. For fiscal year 2005-2006 we plan sales of Euro 46 billion. Based on the very good performance in the first nine months of fiscal 2005-2006, for the full year we now aim to achieve earnings before taxes excluding major nonrecurring effects of around Euro 2.5 billion."

DMKD to switch to continuous cast square & round billets

Ukrainian Dneprovsky Iron and Steel Integrated Works has ordered a new 250 tonne ladle furnace and two 7 strand billet casters to change over from its existing ingot route to continuous casting for lowering the production costs, improving the steel quality and increasing the product yield. The ladle furnace and the first billet casters are scheduled for start up in May 2007. Start up of the second billet caster will follow in early 2008.

The ladle furnace will be equipped with current conducting electrode arms, a single cylinder roof lifting system and a pulse jet type dedusting system. The billet casters will be outfitted with Dynaflex hydraulic oscillation units, for the exact control of the casting oscillation parameters for improved product surface quality, and Diamold high-speed casting molds. Each caster will have a nominal casting output of 240 tonnes per hour and will produce both square and round billets.

Industrial Union of Donbass Corporation owned DMKD produces more than 3 million tons of hot metal and steel per year, which is still partially cast as ingots and subsequently rolled to semis for the production of tubes, structural sections, beams, rails and plates.

Ferrexpos Ukrainian PGOK signs 3 year pallet deal with Fujian San

Swiss base Ferrexpo AG announced that its Ukraine based Poltava GOK mining company has signed a 3 year contract to supply iron ore to China's Fujian San Steel. The release said "The main strategic aim as reflected by the company's annual report for 2005 is to develop long-term partnership on the basis of existing trade relations with China. The contract with Fujian San Steel is a clear result of that strategy."

Ferrexpo AG bought more than 60% of Poltava GOK at the end of last year. Poltava GOK is Ukraine's biggest producer and exporter of iron ore pellets. It produces around 8 million tonnes of pellets per year exporting more than 90% of them and aims to increase output to 12 million tonnes by 2010.

Magang to setup a service center in Hefei

Maanshan Iron and Steel has recently signed a deal with Hefei Economic Development Zone to build a slitting & shearing facility at an investment of 500 million yuan. The project is scheduled to start in October 2006 and commission in March-April 2007.

The service center will supply hot and cold rolled sheets for auto, home appliance and engineering machine industries in Hefei.

Brief on CVRD

Rio de Janeiro based Companhia Vale do Rio Doce began as a Brazilian government corporation in 1942 that gained control of Itabira Iron Ore Co an exploration company that dated back to the 1900s. CVRD was privatized in 1997 when the Brazil Consortium, led by the National Steel Co, acquired 41.73% of the government's stock for $3.3 billion.

CVRD's activities, once restricted to southeastern Brazil, were then expanded to the northeast, central west and northern Brazil, diversifying its mineral product portfolio and consolidating logistics services. Now with a stock market value of about $45 billion, it is present in 14 Brazilian states and in five continents, and is supported by more than 9,000 kilometers of a railway network and 10 port terminals. Its foreign holdings include controlled and affiliated companies in the US, Argentina, Chile, Peru, France, Norway and Bahrain, as well as offices in New York, Brussels, Tokyo and Shanghai.

Mr Roger Agnelli a former executive at Brazil's largest private sector bank Bradesco took the reins of CVRD in 2001 after being named chairman of the board.

CVRD is also the largest global producer and exporter of iron ore and pellets, the world's second largest producer of manganese and ferro alloys and also produces bauxite, alumina and primary aluminum, copper, potash and other minerals. CVRD would become one of the world's top three diversified miners if its planned acquisition of Canada's Inco Ltd is successful.

Hyundai Heavy posts 5 fold YOY jump in net profit for Q2

World's largest shipbuilder South Korean Hyundai Heavy Industries Co posted a more than 5 fold increase in second quarter net profit amid higher ship prices and lower steel costs. Hyundai Heavy reported net profit of 192.4 billion won ($200 million) during April to June 2006 as compared with 35.5 billion won during April to June 205. Sales in the second quarter increased to 2.97 trillion won ($3.1 billion) up by 17% YOY.

According to data from Clarkson Research Studies, the price for a benchmark 300,000 DWT crude tanker rose to $125 million at the end of June 2006 up by 14% over the average price in 2004. Hyundai also benefited from lower average steel prices, which accounts for about 34% of shipbuilding costs, down by 12.8% in H1 of 2006 as compared with that in 2005.

Hyundai Heavy received $5.01 billion worth of new shipbuilding and offshore structure orders in the January to June period. Its backlog orders totaled 236 vessels valued at $19.8 billion at the end of June, which will occupy its dockyards for next three years.

Standard Bank sees high zinc price due to supply constrain

Johannesburg based Standard Bank Group Ltd of Africa said that zinc may average more than double last years price as stockpiles fall and demand exceeds production. Standard Bank said in the report that The concentrate market is still very tight and continues to constrain capacity utilization at refineries. This will be the case at least until 2008. The output may expand 2.4% this year, less than the 3.4% growth rate in consumption.

Mr Gursharan Randhawa of bank said that The tightness in supply is unlikely to ease soon as the demand scenario is very strong. Mr Randhawa said that zinc for immediate delivery may average $3,050 a metric tonne or $1.38 a pound as compared with $1,382 last year adding that the estimate may be revised again on supply concern.

Demand for zinc in China, the worlds fastest growing major economy may rise 7.3% this year, exceeding the 3.6% growth in output according to Beijing Antaike Information Development Co. International Lead & Zinc Study Group said on July 20 that world output of zinc was 120,000 tonne less than demand in the first five months of the year due to a shortage of zinc concentrate as against 98,000 tonne in the year earlier period.

Prices of zinc rose to record $3,907 on May 11 as London Metal Exchange inventories halved this year on growing demand from China, the worlds biggest user of the metal.
Standard Banks forecast is lower than the estimate made by National Australia Bank Ltd, which said that zinc prices will average $3,120 this year.

CMC acquires Concrete Formtek Services

Irving Texas based Commercial Metals Company announced that it has acquired substantially all of the operating assets of Concrete Formtek Services. Pursuant to which, this facility will become a part of CMC Construction Services and will operate under the name of CMC Formtek. Mr Sarjon Kashto the owner of CFS will continue to manage the business while Mr Mark Starek will assume area management responsibilities of the branch.

Mr Binh Huynh executive VP and CMC Steel Group's CRP and Rebar Divisional Manager said "The acquisition of CFS will give us the opportunity to enter the special forming and shoring rental business in the West."

CFS specializes in forming and shoring rentals, was established in 1991 at Santa Fe Springs in California and later moved to Fontana, and finally to Riverside in California.

CMC Construction Services is part of CMC's Domestic Fabrication segment and has 47 locations in eleven states offering a variety of products and services including rebar fabrication, engineering services for tilt-up, forming and shoring rentals, and an extensive line of concrete-related construction materials.

Glencore to buy shares in Chinese Qingtongxia Aluminium

It is reported that Swiss based commodities trading company Glencore International AG has signed an initial agreement to buy shares in state owned Qingtongxia Aluminium Group and will study Qingtongxia's finances before deciding on the size and price of the stake.

Qingtongxia Aluminium, located in western Ningxia Autonomous region, was founded in 1964. It has hydropower and coal fired power stations. The company set up the country's first aluminum joint venture with Alcan, the world's second biggest aluminum producer, two years ago, including a 150,000 ton smelter and a coal fired power plant. Qingtongxia Aluminium ranks behind Aluminum Corp. of China Ltd in Chinese production. It has capacity of more than 400,000 tons a year on top of the Alcan venture. It aims to double production to 700,000 tons by 2010, with profit exceeding 1 billion yuan ($125 million).

Glencore generated $91 billion in sales of metals, agricultural commodities and energy in 2005 and ranks among the top companies globally. It operates mines and smelters on five continents and owns a 40% stake in Xstrata Plc. It directly controls aluminum smelters with a capacity of 385,000 metric tons. It also owns 29% of the shares in Century Aluminum Co, North America's 3rd largest producer. It has interests in at least four alumina refineries and trades bauxite, which is refined into alumina.

Indian spot iron ore to remain firm due to high freight from Brazil

It is reported that several Chinese steel mills and iron ore importers are delaying nominations of vessels and shipments of iron ore from Brazil as freight rates from Brazil to China have surged unexpectedly to $36 to $37 per tonne in last one month from $22 to $23.

The surge in freight rates is being attributed to position taken by Taiwan Maritime Transport Co Ltd in freight derivatives market by entering into several freight forward agreements, which has resulted in withdrawal of almost 15 cape sized vessels from spot market. Apparently, the TMT move is being copied by other ship owners and operators including some from China whereby freight rates are expected to go up further. With two-thirds of the world's cape fleet of around 600 operating under long term contracts, TMT's move boosted physical rates, especially as Europeans were raising coal purchases after heat waves in July.

An executive at a Chinese shipping company said "Imagine 20-30 vessels suddenly disappearing. There was a shortage of carriers. So charterers had to pay more. In the past, people did business only in the physical market. Now somebody has found a big money in the paper market and. many are following this trend. It won't be easy for the market to come down quickly. No one wants to see the market coming down."

This is likely to put spot Indian iron market in tight position as it is currently priced at $68 to $70 a tonne landed in China as compared with $80 to $83 from Brazil. A senior iron ore trader based in Beijing said "The spot ore market from India is getting active. In the next month or two, Indian iron ore prices will be firm."

Port infrastructure in North Vietnam bottleneck for scrap import

It is reported that the steel makers in North Vietnam are facing severe bottlenecks due to existing infrastructure at ports while importing scrap and at present large quantities of scrap is stuck at Hai Phong port awaiting clearance by customs agencies leaving steel mills without their aw material.

Majority of the scrap import in Nort Vietnam is done through Hai Phong port, which can receive maximum 10,000 tonne vessels and has limited unloading capacity. Another port in the North Vietnam Dinh Vu has only two general purpose wharves which are not suitable for handling products like steel.

As a result, major steel producers including Vietnam Steel Corporation, Hoa Phat Joint Stock Company, Van Loi, Dinh Vu, Cuu Long, Viet Y, Thai Nguyen, TechMax, and Hung Yen have committed minimum volume of 300,000 tonnes per year to Cai Lan port developers, who are planning to spend VND56 billion to install unloading equipment to ensure throughput of 3,000 tonnes a day and berths capable of receiving vessels of up to 40,000 tonnes. As per reports the operations are likely to start in July 2007.

According to the Vietnam Steel Association Vietnam now have 10 steel mills which consume up to 2.3 million tonnes of scrap steel every year out of which 0.8 million is sourced domestically and balance 1.5 million tonne is imported. Steel mills in Northern Vietnam account for almost 0.9 million tonne of scrap import.

LionOre gets nickel refinery approval in Botswana

Toronto based LionOre Mining International Ltd announced that it has received approval from the government of Botswana to start building a $620 million nickel refinery at the Tati Mine that it has been developing for nine years. LioOre will own 85% stake and balance 15% will be owned by the Botswana government.

Mr Ted Mayers CFO of LionOre said We're on our way to vertical integration as a producer of nickel. We're starting to spend money tomorrow.

The bulk of the expansion will be on building a base metals refinery ($482 million) and a dense media separation plant ($114 million). The refinery employs LionOre's patented technology known as Activox. Activox is a form of hydrometallurgy that may slice up to three quarters off the capital cost of conventional pyrometallic smelters, estimated at about $1 billion. When combined with development of the DMS plant, LionOre will be able to treat lower grading nickel ores. Activox technologies will double the reserves of Tati's Phoenix mine to 111.6 million tons estimated to contain 331,000 tons of nickel,

Activox uses a chemical solution to extract metals from finely ground ore at low temperature and moderate pressure. LionOre said that on completion in 2009, the refinery will produce 22,000 metric tons of nickel a year from Tati Nickel mine.

RBCT expansion paves way for Kumba & Eyesizwes Inyanda mine

Kumba Resources and Eyesizwe Coal announced that the approval of the Richards Bay Coal Terminal Phase V expansion has paved the way for the construction of their R184 million 50:50 JV Inyanda coal mine situated near Witbank in Mpumalanga. The construction is expected to start in January 2007 and that the commissioning date is in March 2008.

One million tonne coal export based Inyanda mine was approved three years ago by both the Kumba and Eyesizwe boards but it was subject to the RBCT expansion's approval, which would provided export capacity to members of the South Dunes Coal Terminal Kumba (2 million tonnes per year), Eskom Enterprises (3 million tonnes per year) and Anker Coal (1 million tonnes per year).

Mr Ernst Venter GM of Kumbas coal division in a statement said We are pleased that the RBCT board has given the go-ahead for this long-awaited expansion which enables Kumba and Eyesizwe to now proceed with the Inyanda joint venture and take advantage of the buoyant international coal market."

Sumitomo Metals to increase SS seamless tube prices by 10%

Sumitomo Metal Industries announced that it will increase the selling price of nickel series seamless pipe by 10% for domestic distributors and contract users for August order to cover higher nickel price.

Sumitomo Metal Industries also plans to increase the price by around 5% for September and after order depending on nickel price.

Evraz Group companies file Q2 results as per RAS

Evraz Group SA has announced that its major Russian operating subsidiaries OAO Nizhny Tagil Iron and Steel Plant NTMK, OAO West Siberian Iron and Steel Plant Zapsib, OAO Kachkanarsky Mining and Processing Integrated Works KGOK and OAO Vysokogorsky Mining and Processing Integrated Works VGOK have filed their financial results with the Federal Financial Markets Service of the Russian Federation for Q2 2006 in accordance with Russian accounting standards.

NTMKs net profit for Q2 2006 increased by 60 % compared with Q1 2006 due to higher prices for steel products. Despite a decrease in costs of iron ore and coking coal, net profit decreased slightly YOY due to a decline in vanadium slag prices in Q2 2006.

ZapSib performance improved due to higher volumes, price increases and effective cost management. Recovering steel prices was the main factor for improved performance in Q2 2006 vs. Q1 2006. Profit YOY at ZapSib also benefited from an increase in production volumes and more effective control of costs.

KGOK and VGOK net profit YOY decreased, principally due to a decline in iron ore prices. The profit YOY was impacted by lower domestic prices for iron ore. In Q2 2006 average iron ore prices decreased by around 30 % compared with Q2 2005. Iron ore prices were stable for Q2 2006 vs. Q1 2006.

The reporting of RAS accounts for Russian operating subsidiaries is a regulatory requirement in Russia. RAS accounting results differ materially from IFRS. Evraz said that for information with respect to Evrazs financial condition and operating results, reference should be made only to the Groups consolidated financial statements prepared according to IFRS for H1 and H2.

ThyssenKrupp announces changes in its executive board

ThyssenKrupp has announced that with effect December 1st 2006 the executive board of ThyssenKrupp will comprise eight members only and following changes will take place.

Mr Gary Elliott chairman of the executive board of ThyssenKrupp Elevator AG and member of the executive board of ThyssenKrupp AG will resign these positions at September 30th 2006 and succeed Dr Siegfried Buschmann as chairman of the ThyssenKrupp national holding company in the USA and as the Group's NAFTA representative with effect from October 01st 2006.

Subject to the approval of the supervisory board of ThyssenKrupp Elevator, he will be succeeded in his position at ThyssenKrupp Elevator by Mr Edwin Eichler, who will also remain chairman of the executive board of ThyssenKrupp Services AG and member of the executive board of ThyssenKrupp AG.

Dr A Stefan Kirsten, who has been CFO of ThyssenKrupp since 2002, has informed the Supervisory Board that due to changes in perspectives in the ThyssenKrupp Group he will not be seeking to extend his contract as CFO when it expires on July 31, 2007. Dr Kirsten's will continue to sit on various supervisory boards within the Group. His duties will be taken over by executive board vice chairman Dr Ulrich Middelmann who will also remain responsible for Controlling and Mergers & Acquisitions.

The supervisory board of ThyssenKrupp AG thanked Mr Gary Elliott and Dr Stefan Kirsten for their work on the executive board of ThyssenKrupp AG and as chairman of the Elevator segment.

COSCO & Jinan sign strategic partnership agreement

Shipping giant COSCO Group has recently signed a strategic partnership agreement with Jinan Iron & Steel Group Corporation to extend cooperation in the fields of iron ore shipping, export products transportation, shipbuilding steel supply and technical research.

The strategic agreement will also strengthen the existing business relationship between the two groups, showing great significance in effectively managing market risks, streamlining corporate managements, controlling operating costs for both partners.

Evrazuda starts developing alternate pit at Burluksky deposit

In view of the forthcoming depletion of Novy-1 patch by November 2006 at Burluksky ore deposit in Krasnoyarsk region of Russia, Irbinsky branch of Evrazruda JSC has started developing a nearby Novy-2 patch.

Evrazuda will build trenches, a road to the pit and a lip trench at Novy-2 patch. It will also shift equipments from Novy-1 over to Novy-2 and also construct a 6 KV power line to supply electricity.