August, 13 2006
RINLs Vizag Steels sale up by 31% YOY in April to July
Rashtriya Ispat Nigam Limiteds Visakhapatnam Steel Plant has achieved a record sale of Rs 2,530 crore during April to July 2006 up by 31% YOY over April to July 2005. The sale include domestic sales of Rs 2,343 crore and an export sales of Rs 187 crore up by 25% and 228% YOY respectively over the corresponding period last year.
RINL sold 0.927 million tonnes during 4 months registering a growth of 43% over April to July 2005. The special steel sales volume of 0.325 million tonnes is up by 75% YOY.
RINL produced 1.355 million tonnes of hot metal, 1.202 million tonnes of liquid steel and 1.071 million tonnes of saleable steel during April to July 2006. Production of hot metal, liquid steel and saleable steel during the period recorded a capacity utilization of 119%, 120% and 121% respectively.
TATA Steels Bastar plant clears land hurdle
It is reported that the tribal farmers of 2 villages in Chhattisgarh, which had not agreed to part with their land earlier have given consent to handover their land for setting up a steel plant by TATA Steel. Farmers of 8 out of the 10 effected villages had consented to offer their land to the TATA Steel last month.
The reported sited an official of industry department of Chattisgarh government as saying that They too have announced that they will surrender their land for the early beginning of the construction work. It is a welcome news that a consensus has been achieved among the villages of Bastar. The government and the company will now work towards the rehabilitation of affected farmers.
TATA Steel had signed a MoU with Chattisgarh government in June 2005 to set up a 5 million tonne integrated steel plant with an investment of Rs.100 billion and requires about 4,500 acres of land.
Mittal Steel to start in state which fulfills its requirements first
Mittal Steel said that it was serious about investing in Greenfield projects in both Jharkhand as well as Orissa but will start wherever its requirements are fulfilled first. Mr Sanak Mishra CEO of Mittal Steel Jharkhand said We have short listed three probable sites for our 12 million tonne plant in Jharkhand. We are seriously pursuing the projects in both Jharkhand and Orissa. We will begin work in the state which fulfils our requirements first.
Mr Mishra said that viability of a steel plant largely depended on the availability of iron ore. He said "There are roadblocks in procuring iron ore mines for the proposed 12 million tonne steel plant in Jharkhand, but we are holding parleys with the Jharkhand government."
Mr Mishra said that out of six probable sites in Jharkhand, the company has shortlisted Saraikela, Galudi & Torpa and a final decision would be taken in four weeks. He said that We are assessing the land requirement. Roughly, we need about 10,000 acres. Mr Mishra said that the detailed project report for Jharkhand is likely to be submitted to the government by October next year.
Indian metal industrys growth to be supported by trained manpower
The Indian Institute of Metals has stressed upon new imperatives for generating trained human resources to meet the growing needs of the ferrous and non ferrous metals industry. Going by the capacities that were being created the metals industry would require an additional 30,000 engineers in the next 10 years.
Mr B. Muthuraman MD of TATA Steel and new chairman of IIM while addressing a news conference on the occasion of the 60th AGM of IIM said that services sector had lately emerged as a more preferred career option for young people and we need to inculcate among young minds, the aspiration to join the metals industry
Mr Muthuraman said that "To achieve economic growth and emerge as a developed nation, steel production in India has to go up. The industry will need appropriately skilled human resources to serve the cause of national growth. If we have to grow at the rate of 10% cent, we have to do more. We have to convince the young people about a career in the manufacturing sector. We require them for the industry, manufacturing, processing and marketing.
Mr Muthuraman said that the Indian Institute of Metals would take steps in this direction and cooperate with concerned government departments on policy formulations.
Search for explosives in imported scrap at Curtorim factory
Goa police with a bomb disposal squad descended on the factory premises of a steel factory at Curtorim and conducted a search of the scrap material for any bomb shells. The search operation began at around 4 PM on Friday was concluded at 6AM on Saturday without any discovery of arms and ammunition in the scrap material
The police action comes in the wake of reports that a ship has offloaded about 1000 tonnes of steel scrap containing used ammunition and bomb shells at one of the ports in Mumbai three days ago and about 274 tonnes of the scrap material had reached Goa and was offloaded at the steel factory.
Indian Railway to set up factories at Rae Bareilly and Saran
Indian Railways proposes to set up a coach factory at Rae Bareilly in Uttar Pradesh and a locomotive factory at Saran in Bihar with an investment of Rs 1,000 crore in each unit, over the next few years. The Railways would be preparing a detailed project report for setting up these two units.
The present capacity of railway coaches is 1000 each at ICF Integral Coach Factory Chennai and RCF Rail Coach Factory Kapurthala with expansion by 500 coaches at each location on the cards. India's total production capacity needs to be increased to be able to produce about 5,000-6,000 coaches over the next few years to meet the demand not only from Railways but from mass rapid transit systems as well.
The present capacity of railway locomotives is 150 each at CLW Chittaranjan Locomotive Works Chittaranjan and DLW Diesel Locomotive Works Varanasi.
Coal & Oil to acquire coal mine in Indonesia
Dubai based Coal and Oil Company LLC is in the process of acquiring a coal mine in Indonesia. Mr Ahmed AR Buhari president and CEO of Coal and Oil said "We are in the process of acquiring our own mines to make sure that there is an assured supply for our customers." He added that it might take at least a year for acquisition.
Coal and Oil has alliances with many coal producers and sources various types coal from them to imported coal for various industrial units and power producers in the India.
L&T suspends Hazira operations due to floods
Larsen & Toubro Ltd has inform BSE that due to heavy rains in the catchment areas of Tapi river and release of large amount of water from Ukai dam into the river, Surat city and adjoining areas were inundated. Consequently, employees were unable to reach the Company's Hazira Works and hence operations at the Works were forced to be suspended from the afternoon of August 07, 2006.
With the receding of the floodwaters, normal operations at the Works are expected to commence soon.
Precision SS project at Coega gets government approval
Coega Industrial Development Zone has received authorization by the Eastern Cape economic affairs, environment and tourism department this month for R1.1 billion stainless steel precision strip mill project following the completion of an environmental impact assessment study. The construction of the project will begin in early 2007.
The plant will be located within Zone 2 of the Coega IDZ and it will be a supplier to first and second tier automotive component manufacturers and other thin strip steel related industries such as telecommunications, electrical and medical.
The construction of the strip mill will be executed in two phases and R500 million will be spent on each phase. About 9,000 tons of 400mm wide stainless steel coils will be produced in the first phase of the project and the figure will increase to 27,000 tons during the second phase.
The project was announced by government a year ago as part of the off sets obligations from the multibillion rand arms deal, where winning bidders had to invest a fraction of their contract value into South Africas economy. MAN Ferrostaal was awarded a multimillion rand contract to build three submarines for South Africa. MAN Ferrostaal is the main partner in the consortium, which also includes Columbus Steel.
Kinsteel shareholders approve Maju Holdings deal for Perwaja
Malaysian Kinsteel Bhd announced that its shareholders at an EGM in Kuantan on August 11 have approved the companys proposed strategic alliance with Maju Holdings Sdn Bhd on Perwaja Steel Sdn Bhd and the acquisition of the Gurun plants. Malaysian Securities Commission has recently approved the alliance where Kinsteel would acquire 51% of Perwaja Steel and 51% of the Gurun plants through Perfect Channel Sdn Bhd for a combined value of RM297.6 million. Maju will also take up a 28% stake in Kinsteel. The merger is expected to be completed by September 30 2006.
Kinsteel in a statement said the alliance would enable the company to be a fully integrated steel player while its combined annual production capacity would increase to 4.6 million tonnes from 0.8 million tonnes. The companys product range would also include DRI and billets produced by Perwaja Steel, beam and sections, bar and wire rods, wire mesh and nails by the Gurun plants.
Mr Tan Sri Pheng Yin Huah MD of Kinsteel said I am pleased to have the support of the shareholders. The acquisition of the Perwaja Steel and Gurun plants is a reflection of Kinsteels desire to move up the value chain and provide higher value-added products to our customers.
Perwaja, which started out as a national project in 1982 and later made losses hitting as much as RM2.9 billion, was bought over by Maju Holdings Sdn Bhd's executive chairman Mr Tan Sri Abu Sahid Mohamed and his brother Mr Datuk Abu Talib Mohamed in June 1997. Perwaja's Gurun wire rod and section mills were reactivated in November 2005 and April 2006 respectively. Perwaja's Kemaman mill is Malaysia's only billet-making factory that makes steel products through DRI route.
EPA announces Mercury Switch Program
The US Environmental Protection Agency has announced a national program that will help cut mercury air emissions by up to 75 tons over the next 15 years.
The National Vehicle Mercury Switch Recovery Program is designed to remove mercury containing light switches from scrap vehicles before the vehicles are flattened, shredded, and melted to make new steel. Together with existing state mercury switch recovery efforts, this program will significantly reduce mercury air emissions from the furnaces used in steel making.
Under the program, automobile dismantlers will remove the mercury containing light switches from scrap vehicles prior to the vehicles being flattened and then shredded at scrap recycling facilities. The program will also provide a financial incentive for those who remove mercury switches.
Steel making is the fourth leading source of mercury air emissions in the United States after coal fired utility boilers, industrial boilers and gold mining.
The National Vehicle Mercury Switch Recovery Program is the result of a 2 year collaborative effort involving EPA, the End of Life Vehicle Solutions Corporation, the American Iron and Steel Institute, the Steel Manufacturers Association, the Institute of Scrap Recycling Industries, the Automotive Recyclers Association, Environmental Defense, the Ecology Center and representatives of the Environmental Council of the States.
Venezuela's new mining law approval postponed
Venezuela's Ministry of Basic Industry and Mining announced that passing of a new mining law by Venezuela's National Assembly has been postponed to until the next legislative session beginning in mid September. Mr Jose Ramon Rivero the head of the mining committee stated that "More consultation is needed" with mining communities in Bolivar state concerned that the new law's objective of doing away with gold concessions threatens their livelihood.
MIBAM, which is responsible for presenting the draft bill to the assembly, had said earlier that the new law would be approval before the August 15th summer recess.
MIBAM also named a new minister economist Mr Jose Khan to replace outgoing minister Mr Victor Alvarez.
China deals 70,000 cases of illegal mining in 18 months
According to statistics released by the Ministry of Land and Resources China has dealt with 70,000 illegal mining cases in 18 month period from 2005 to the end of June 2006. MLR recorded 64,661 cases of mining without a license, 1,316 cases involving illegal trading in prospecting & mining rights and 4,383 cases of mining beyond boundary lines.
China punished 2,660 civil servants who held stakes in mines. 1,438 suspects charged with mining crimes have been handed over to judicial departments. The government revoked 1,647 exploration and mining licenses.
China has intensified the crackdown on illegal mining and enhanced supervision in this area. The objective is to improve management of exploration and mining of the country's mineral resources. Illegal activity is widespread because in some areas mineral reserves lie close to the surface, making mining activity profitable even with primitive equipment.
Tulachermet to change charging system in its BF No 1
Russian pig iron producer Tulachermet said that it is in the final stage of negotiating a contract with Luxembourg's Paul Wurth for the delivery of a charging system and cyclone for its BF No 1.
Tulachermet said that the equipment will improve performance, reduce pollution and improve working conditions. It will reduce blast furnace slag by about 30% and coke consumption by 20 kg per tonne of iron.
The Metalloinvest holding owns 28% of Tulachermet.
Dongkuks net profit in Q2 surges by 22.3% YOY
South Korea's No 3 steelmaker Dongkuk Steel Mill Co announced that its second quarter net profit surged by 22.3% YOY due to higher prices of bars and beams.
Dongkuks net profit in Q2 of 2006 came to 100.9 billion won ($105.29 million) as compared with 82.4 billion won in Q2 of 2005.
Falconbridge to develop Perseverance zinc mine in Quebec
Toronto based Falconbridge plans to invest $145 million to develop the Perseverance zinc mine in northern Quebec in 2 years. The announcement is Falconbridge's second major mining expansion in northern Quebec in recent days. Earlier this week, the company said it will spend more than $500 million to boost nickel output from its Raglan mine.
Perseverance has measured and indicated resources of 5.1 million tonnes of ore which contains zinc, copper, silver and gold. Falconbridge said zinc produced at the Perseverance mine will be processed at Falconbridge's former Lac Matagami mill. The annual production of 228,000 tonnes of zinc concentrate will be shipped and processed at the CEZinc refinery in Valleyfield.
Falconbridge said that due to a relatively small mineral deposit, the mine is expected to operate for only about five years. Mr Jean Desrosiers VP of Falconbridge's zinc group told a news conference "While the size of the Perseverance deposit will allow only a relatively short operating life, the investment will nevertheless give the community a seven to eight year period to pursue greater economic diversification."
Shanghai STALs expansion project gets government approval
Shanghai STAL Precision Stainless Steel Co Ltd has announced last week that its expansion project for precision stainless steel strip has been approved by the government.
The 36,000 tonnes expansion project at an investment of RMB 1 billion ($120 million) consists of a CR Sendzimir mill, a bright annealing line and related equipment.
STAL is a JV between Allegheny Ludlum Corporation of US and Baoshan Iron & Steel Co Ltd.
Usiminas reduces share of exports due to strong domestic demand
Brazilian steel maker Usiminas is optimistic on domestic demand for flat products. Mr Paulo Penido Pinto Marques investor relations director of Usiminas said in a webcast on Friday that "We expect an increase in local demand for flat steel products of more than 7% in 2006." Mr Marques said that demand for flat steel products increased by 14% in the second quarter of 2006 as compared to the first quarter of 2006.
Due to the strong demand Usiminas has reduced exports which amounted to 31% of sales volume during Q2 of 206 as compared to 38% in Q1 of 2006 and 46% in Q4 of 2005. 4Q05. Usiminas' guidance for 2006 includes a 33% export rate and total sales volume of 7.9 million tonnes.
Usiminas and its subsidiary Cosipa have combined installed capacity of 9.5 million tonnes per year. Shipments in 2005 totaled 7.3million tonnes out of which 33% was exported.
POSCO to disclose details of steel plant in Vietnam in February
POSCO announced that it will disclose details of any plan to build a steel plant in Vietnam by February 10 of 2007, according to a document filed with the Securities and Exchange Commission.
Vietnam Steel Producers Association had announced on 9th August that POSCO plans to invest $1 billion to build a steel mill in one of the industrial parks in the southern Ba Ria Vung Tau Province in southern Vietnam. The project will be developed in two phases. The 1st phase will give 0.7 million tonne steel making capacity at an investment of $340 by 2009. The 2nd phase will double the capacity to 1.5 million tons of steel a year and build a new factory capable of 3 million tons per year. The new factory is expected to be operational in late 2012.
PSMC Privatization May get embroiled in legal battle
Barrister Zafarullah Khan of Watan Party, one of the petitioners on whose plea the Supreme Court scrapped the privatization of the Pakistan Steel Mills, said that the conspiracy to dispose off the country of the vital industry still continues alleging that Prime Minister Mr Shaukat Aziz is on top of the list of people who want to sell a vital national asset for reasons only known to them.
Barrister Zafarullah Khan said that during the recently held meeting of the Council of Common Interests, NWFP chief minister voted against the deal. He said that as per Article 154(5) of the constitution CCI decisions had to be unanimous and any disagreement on a national issue had to be adjudicated by the Majlis-i-Shoora, which meant either the National Assembly or the Senate. In case difference was not resolved, a joint session of parliament was the final arbitrator.
Barrister Khan said that it was deplorable to note that the prime minister had at the end of the CCI meeting declared that the council had given a decision in favor of the government. He said This is clearly an unconstitutional response made under malafide intentions.
He said the NWFP chief minister was now under a constitutional obligation to file a review petition before the Supreme Court to get a verdict that the issue of the PSM privatization was a dispute among the federating units. He said if the chief minister failed to file a plea, the Watan Party would move the apex court in vital national interest.
Barrister Zafarullah also said that the Supreme Court referred to the Council of Common Interests the issue for a decision on the ground that it could not take a judicial review of policy matters. He cited articles 2-A, 9, 37 and 38 of the constitution to plead that if the policy was formulated with a malafide intention, like the sale of profitable national asset, the apex court had all the powers to take a judicial review of the policy.
Perwaja selling Islamic bonds to refinance debt
Malaysian Perwaja Sdn Bhd, which is merging with Kinsteel Bhd to form one of Malaysia's biggest steel millers, is selling RM400 million worth of Islamic bonds to refinance its debts. The RM400 million bonds, booked by a handful of foreign and local banks, are to be repaid in stages over 10 years. Perwaja's debts amount to RM654 million, comprising RM217 million bank borrowings and RM437 million owed to third party creditors.
Mr Tan Sri Pheng Yin Huah MD of Kinsteel told "We'll settle all the debts, big and small, equitably, stage by stage. As for Perwaja's unpaid electricity bills, we have more or less worked out a repayment schedule with Tenaga Nasional Bhd. Apart from a few more details that still need to be looked into, in principle we agreed that the repayment will start next quarter and finish by mid 2008."
He said the cash flow generated from the Gurun and Kemaman mills will go into servicing the bonds raised to finance the debts owed by Perwaja.
Chinese MCC signs MoU with Ethiopia for mineral exploration
Ethiopian Ministry of Mines and Energy signed a MoU with the Chinese state controlled Metallurgical Construction (Group) Corporation for the exploration and development of mines in Ethiopia. The MoU covers exploration of minerals that would be used as input for the production of iron, nickel and cement.
Under the agreement MCC would study the amount and type of minerals found in various parts of the country compiled by the Geological Survey of Ethiopia. MCC has also agreed to carry out exploration of mines jointly with other companies engaged in a similar sector.
ThyssenKrupp to raise steel prices from October 1
ThyssenKrupp AG plans to raise prices for a range of its steel products from October 1. A company spokesman said the company has not yet determined by how much it intends to raise prices.
ThyssenKrupp last raised prices for steel products by Euro 30 to Euro 50 per tonne on July 1.
