August, 15 2006
JSPL clinches Bolivian El Mutun deal
Reuters has reported that Bolivia has finally signed a JV deal with India's Jindal Steel and Power Ltd for the development of El Mutun, a site believed to contain one of the world's biggest iron ore deposits. Bolivia will receive some $200 million a year in profits and taxes as part of the 20 year concession. A final contract is expected to be signed within a month.
Mr Carlos Villegas Bolivian planning minister said at a press conference "This project will allow us to develop a steel making industry for the first time ever."
Mr Vikrant Gujral vice chairman and CEO of JSPL said that the company will initially invest over $2 billion to mine ore and produce steel.
The 60 square kilometer El Mutun deposits, which lies near the Brazilian border near the city of Puerto Suarez, is estimated to contain iron-ore reserves of more than 40 billion tonnes.
TATA Steel seeks $750 million loan for acquisitions & expansions
According to reports in media TATA Steel Ltd is seeking a $750 million USD loan to finance acquisitions and build new plants and that it has hired ABN AMRO Holding NV, Citigroup INC and Standard Chartered PLC for securing the loan. The three arrangers are inviting other banks to join as sub underwriters to earn an all in pricing of 54 basis points, including fees and interest. Banks joining the deal will have a final take of $50 million.
As per reports TATA Steels holding company TATA Sons Ltd has also hired some banks including Calyon, Bank of America Corp, Barclays PLC, DBS Group Holdings Ltd, HSBC Holdings PLC to help it raise a $750 million loan. The Tata Sons' deal will have maturities of five, six and seven years and the eight arrangers will get an all-in pricing of 60 to 65 basis points. The deal has not been marketed to other banks
Tata Steel is seeking the loan to expand production capacity and for acquisitions. It produces 5 million tonnes of steel a year now but plans to boost output to 30 million tons over the next decade. The expansion may cost up to Rs 70,000 ($15 billion), according to its annual report.
CCCMC reference iron ore prices remain flat last week
The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters have released the average reference prices for import transactions of Fe 63.5% Indian iron ore last week.
FOB $ 52 to $53 per tonne
CIF $ 68 to $70 per tonne
Both FOB and CIF prices have remained unchanged over the previous weeks reference prices.
The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation.
TATA Steels SA ferro chrome project groundbreaking this month
TATA Steel would have the ground breaking ceremony for its ferro chrome smelter project in South Africa by the third week of August. Mr P Roy in charge of TATA Steel's ferro alloys and minerals unit told reporters on the sidelines of a seminar on Indo-African business opportunity organized by CII that The allocation of land for the project at Richard's Bay has been completed and the groundbreaking ceremony is planned later this month.
The project is been promoted by Tata KZN PTY Ltd a company registered in South Africa and located at Richards Bay in Kwa Zulu Natal Province. TATA Steel and TATA Africas 90:10 JV project would require an investment of $120 million and the commercial production of the project is scheduled in the 4th quarter of 2007. Mr Roy said that "In the first phase the capacity of the plant will be 0.12 million tonne.
SS Blue Lady to beach at Alang today
Local sources have reported that asbestos laden SS Blue Lady will beach at its final place of rest at the ship breaking yard at Alang today
KSPCBs order for revoking ban on iron ore movement questioned
Dakshina Kannada Parisharasaktara Okkoota has demanded a white paper on the pollution caused by the movement of iron ore trucks in Dakshina Kannada and Udupi districts and has urged the Deputy Commissioners of the two districts to convey meetings to explain the steps taken to prevent pollution to the people.
The Okkoota has also criticized the Karnataka State Pollution Control Board for lifting ban on the iron ore transportation to New Mangalore Port and has demanded an explanation from the board for revoking the ban.
A release issued by the Okkoota said that the Karnataka State Pollution Control Board by lifting its own order has indirectly permitted further pollution, which can not be expected from a responsible organization. The release said The board has a major responsibility of safeguarding the environment by monitoring various industries. If the board decides to withdraw its on order just on the orders of a Minister, how can it be expected to function independently in its duties?
India to make investment in oil & mining in Ivory Coast
India plans to invest $1 billion in oil exploration and mining in Ivory Coast in the next five years and will open new factories. Mr Amarendra Khatua Indian ambassador to Ivory Coast told Reuters in Abidjan that "Indian investment in the mining and hydrocarbon sector in this country will be $1 billion over the next five years."
The likely areas of investments are led by offshore oil exploration on the Ivorian stretch of the prized Gulf of Guinea coastline which is believed to hold large, untapped reserves followed by mining of gold, diamonds, manganese, bauxite, iron ore and chrome.
Mr Amarendra Khatua put Indo-Ivorian annual trade at $360 million and said it rose by a third in 2005. An importer of Ivorian timber, cotton, scrap metal and foodstuffs, India exports its rice, transport and engineering equipment and textiles to Ivory Coast.
India's plans come at a time when some investors in the former French colony are shying away from new business ventures due to the political uncertainty and insecurity that are the legacy of a 2002-03 civil war. India is following China by stepping up its presence in resource rich sub Saharan West Africa, where offshore oil output is steadily rising.
Bellary sponge makers seek iron ore support
Bellary Sponge Iron Manufacturers Association is strongly opposing the export of iron ore from Karnataka and demanding that the state government allow mining in the patta lands as that would liberalize the supply of ore to their units.
Mr T Srinivasa Rao president of association told reporters that owing to the ban on excavation on patta lands, the sponge iron manufacturing units are facing a big problem. Out of 39 units, 18 which are functioning in Bellary, are deprived of the good quality ore available from the patta lands because of the ban and despite several appeals to the state government, nothing has been done. The minimum requirement of raw iron ore by the plants to convert into sponge and pig iron is 6,000 tonnes a day.
Mr Srinivasa Rao said that the state government is getting Rs 27 per tonne royalty from exports of iron ore to China and Korea, whereas the sponge iron units are liable to pay Rs 2,000 a tonne because of the taxes at various stages while processing of the raw ore into sponge iron and that this point has been totally ignored by the government, which has been laying more stress on export. Mr Rao said that the iron is even sent to other states Tamil Nadu and Andhra Pradesh at the cost of the Karnataka's units.
Private participation in hydro projects sought
Mr Sushil Kumar Shinde union minister of power informed Rajya Sabha that Indian government is encouraging greater participation by private companies in development of hydro electric projects but no specific bids have been invited for participation of private companies in this regard.
He informed that the Electricity Act of 2003 provides that any generating company including private companies may establish, operate and maintain a generating station without obtaining a license under the Act if it complies with the technical standards relating to connectivity with the grid. However, concurrence of Central Electricity Authority is required for Hydro Power Schemes estimated to involve capital expenditure exceeding such sum as may be fixed by the Central Government, from time to time, by notification.
Transmission, distribution and trading of electricity are licensed activities, the license for which is given by the appropriate Electricity Regulatory Commission. Any private company can also apply for license for any of these activities to the appropriate Electricity Regulatory Commission.
GMR Industries to demerge ferro alloy division
GMR Industries Ltd has announced that its board has decided to demerge the ferro alloys division to a Separate Company GMR Ferro Alloys & Industries Ltd subject to approvals from Shareholders, Stock Exchanges and High Court of Andhra Pradesh and other authorities as may be required.
GMR said that board has approved the adoption of the valuation report submitted by Deloitte Haskins and Sells, which would form the basis for the issue of shares to the members of the demerged GMR Ferro Alloys & Industries Ltd in exchange for the transfer of the demerged undertaking under the Scheme of Arrangement.
ABG Shipyard receives EEPC award for Export Excellence
ABG Shipyard Ltd has announced that it has been awarded with a "Shield for Star Performer as Large Enterprise" in the product group of Other Transport Equipments including Vessels in recognition of the Company's outstanding contribution to Engineering Exports during the year 2004-05.
ABG has also informed that it has received All India Trophy for Highest Exporters in the category of highest growth in export - Non SSI for t 2000-01 and 2002-03 from the EEPC, Highest Export Performance Certificate for the year 1999-2000 from the Western region council of EEPC and trophy for highest exporter for highest growth in exports (non SSI) for the Company's performance during the year 2003-04 from EEPC.
Fortescue Metals signs $2 billion underwriting deal
Australian iron ore developer Fortescue Metals Group Ltd has signed a $2.07 billion underwriting deal for its planned iron ore mine in Western Australia's Pilbara region. The high yield debt will pay fixed interest rates of as much as 10.625%. Fortescue said that North American investors bought 65% of the debt, European investors about 20% and the rest was sold in Asia.
Citigroup Global Markets Ltd has agreed to underwrite the sale of secured debt to international institutional investors and the bond sales, co managed by Jefferies & Co will be settled on August 18.
The company secured the sale after arranging a $400 million investment and loan from New York based Leucadia National Corp last month. The debt raising is part of the total $3.7 billion required to develop the Pilbara project, which is due to start production in the first quarter of 2008, producing 45 million tonnes of iron ore a year.
This would make FMG Australia's 3rd largest producer of iron ore after BHPB and Rio Tinto. Fortescue, which began planning the project in mid 2003, has previously said it has sales agreements covering 88% of the expected production.
Onesteel's-Smorgon deal concerns ACCC
Australian Competition and Consumer Commission have expressed significant concerns regarding OneSteel Ltd's proposed acquisition of Smorgon Steel Ltd announced in late June. The ACCC said it is seeking further industry consultation on the acquisition by August 23rd and a final decision will be made on September 6th.
The Australian Competition and Consumer Commission said its preliminary view was that the acquisition will lead to a substantial lessening of competition in the domestic supply of steel reinforcing products and grinding media used in mineral extraction and other crushing processes. It also has concerns that the acquisition may lead to a substantial lessening of competition in the domestic supply of wire products, structural sections used in manufacturing and construction, and steel products used in mining applications.
Mr Graeme Samuel chairman of ACCC said "In particular, the ACCC has formed the preliminary view that the proposed acquisition will merge the two major domestic producers of long steel products, and will result in a supplier that is vertically integrated from ore mining and steel production through to processing, distribution, engineering support and retail for most long steel products. While imported steel products, both as final products and as feedstock for local processing and fabrication, will limit the competitive impact of the acquisition for some types of long steel product, the ACCC is concerned that imports will not act as an appropriate competitive constraint across the range of all long products".
Mr Samuel noted OneSteel has provided a draft undertaking to address these competition concerns through a demerger of the Smorgon Steel distribution business. But, he said, this undertaking will not be adequate as the specific distribution assets offered under the undertaking will not create a viable and competitive competitor in distribution post-acquisition.
Xstrata shareholders approve bid for Falconbridge
Xstrata said in a statement that its shareholders have approved the company's C$19.2 billion ($17.1 billion) purchase of Canadian nickel producer Falconbridge Ltd. Investors representing a 99.85% of Xstrata's shares voted in favor of the acquisition at a meeting at the company's headquarters in Zug, Switzerland.
The deal is larger than the BHP Ltd's $13.2 billion takeover of Billiton Plc in 2001 that created Australian miner BHP Billiton. Xstrata is offering $62.50 in cash for each share of Toronto based Falconbridge that it doesn't already own. Xstrata said July 31 it holds a 24.5% stake.
The Sunday Telegraph had earlier reported on July 30 that Xstrata plans a rights offer in London in the fourth quarter to help fund the purchase by raising $5.19 billion.
Xstrata's largest shareholder is Swiss commodities trader Glencore International AG, which controls a 36%stake.
Angang announces 5 million tonne plant in Liaoning province
China's 2nd largest steelmaker Angang New Steel Co said that it plans to build a new steel plant in northeast China for 22.6 billion yuan ($2.83 billion) to boost its capacity. The facility, to be located in Bayuquan port in Yingkou city of Liaoning province, will have an annual capacity of 5 million tons of crude steel. The facility is likely to begin operations in 2008.
The company's statement said the new facility may need about 7.3 million tons a year of iron ore as raw material. The majority of the iron ore could be imported from countries such as Australia, India and Brazil, it said.
Angang's parent was China's 4th largest steel producer in 2005 and a merger in the works with smaller rival Benxi Iron & steel Group could push it to second place. Angang is expected to produce 15 million tonnes of crude steel this year, after taking over assets from its state owned parent and starting production at a 5 million tonne plant in May.
The facility swill be able to produce 4.88 million tonnes of steel products, including 2 million tonnes of thick plate, 1.92 million tonnes of HR and 0.96 million tonnes of CR.
Hebei Jinxi commissions heavy beam and section mill
Hebei Jinxi Iron & Steel Company Ltd in Hebei Province of China has put a 1 million tonne capacity heavy beam and section mill into operation and it is reported that beams of size H400 x 400 x 13/21 were successfully rolled.
The mill comprises a heavy horizontal two roll roughing stand, a reversing tandem stand group consisting of one universal roughing stand and one universal finishing stand, a shift able horizontal edging stand, a cooling bed, Compact Roller Straighteners, hot and cold saw installations and down line finishing and handling equipment.
With this mill Hebei Jinxi Iron & Steel Company will be able produce beams with a maximum web height of 900 mm and a maximum flange width of 400 mm.
POSCO denies short positions on nickel
Wall Street Journal citing metals market participants in London has reported that POSCO is scrambling to cover nickel short positions on the London Metal Exchange. The report said that POSCO is short of 10,000 tons of nickel against LME positions, having bet the market was falling while nickel prices have continued to rise. It also said that POSCO is also 20,000 tons short on the physical nickel market, having under bought against its customer requirements.
However a POSCO spokesperson said It is a groundless market rumor. It makes no sense. The position for POSCO to cover is less than 1,000 tonnes, a futures deal traded in April. The POSCO official also rejected the report's claim that POSCO was some 20,000 tons short on the physical nickel market, after it under bought against its customer requirements. The spokesman also said that POSCO, a steel maker, is the very consumer, not a speculator, of nickel. Most of its demand is supplied by long term contracts.
ThyssenKrupp reorganizing to have 5 business segments
ThyssenKrupp issued a news release on 11 August outlining the plans for reorganizing its business divisions. As part of the reorganization, the ThyssenKrupp Automotive and ThyssenKrupp Technologies segments are to be merged effective from 1 October 01, 2006, subject to the approval of the responsible boards.
As a result, the ThyssenKrupp Group will then be organized into five segments - Steel, Stainless, Technologies, Elevator and Services.
Under the restructuring of the groups automotive activities, North American body and chassis businesses, which have sales of around 1 billion and 4,000 employees, are to be sold and the discussions are currently underway with potential buyers.
USW supports Esmark in Wheeling-Pitt takeover
The United Steelworkers have officially picked a side in the takeover battle for Wheeling-Pittsburgh Steel Corp by declaring that it will embrace a future with an Illinois steel supplier and try to defeat a merger with management's preferred partner. Mr David McCall said that USW will use every means at the union's disposal to defeat Wheeling-Pitt's proposed deal with Brazilian steelmaker Companhia Siderurgica Nacional.
The union's choice is not a surprise; in recent weeks, the steelworkers have complained that they had no contact with CSN prior to Wheeling-Pitt's public announcement. Esmark, on the other hand, has an established relationship with the union and has been courting it for support.
Wheeling-Pitt, which employs about 3,100 at plants in West Virginia, Ohio and Pennsylvania, has a tentative agreement to merge with CSN despite a looming takeover attempt by Esmark Inc.
The showdown for Wheeling-Pitt will culminate on November 17 at the annual meeting in Pittsburgh, where shareholders will vote on the two proposals and two new boards of directors.
US ITC continues AD on SiMn from Brazil, China and Ukraine
Antidumping orders in the US covering the import of silico manganese from Brazil, China and Ukraine are to remain in place, following a determination by the US International Trade Commission that revoking them would lead to a continuation or recurrence of material injury in the foreseeable future.
This action comes under the 5 year sunset review process required by the Uruguay Round Agreements Act. The sunset review for import of Silico manganese from Brazil, China, and Ukraine was instituted on January 3, 2006. On April 10, 2006, the Commission voted to conduct expedited reviews. All six Commissioners concluded that the domestic group responses for these reviews were adequate and the respondent group responses were inadequate and voted for expedited reviews.
Severstal-Invest to strengthen network in Russia
Russia's biggest metals trading chain Severstal-Invest has announced plans to invest about $200 million in its expansion over the next two years after its shareholders approved a strategic development plan to expand infrastructure.
The first phase of the program calls for outfitting existing regional warehouses in Belgorod, Rostov and Oryol with production equipment for various types of metal processing. Subsequently, the company plans to build a network of warehouses throughout the European part of Russia that will be outfitted with production equipment to various degrees.
Severstal-Invest have begun to work out the details of the project to create a chain of metal services centers. It plans to create a new market segment with specific production facilities that are highly integrated into the client's cost chain. The main clients will be the automotive and engineering sectors.
Severstal-Invest have its headquarters in Cherepovets and more than 30 representative offices throughout Russia. Severstal-Invest have sold more than 600,000 tonnes of rolled products, pipes and hardware in the first half of 2006, for about 9 billion rubles, up by 53% YOY. Less than half of the products sold by the company are made by Severstal.
Baosteel reported to be joining Handan Steel's new project
China Securities Journal citing an unidentified official from the Hebei Development and Reform Commission has reported that Baosteel Group may join with Handan Iron & Steel Group to build a 5 million ton steel project in the northern Chinese province of Hebei,
The HR & CR project may cost as much as 19 billion yuan ($2.4 billion) to build and as per reports Handan Steel has sought 10 billion yuan in bank loans to fund the project.
Handan Steel, located in the south of Hebei, also owns iron ore mines, which would be attractive for Baosteel. As per reports Handan Steel wants Baosteel to help it produce high value added steel products. The report didn't say whether Baosteel will take over or merge with Handan Steel.
Arcelor-Mittal to get the business going now
With the new management team is in place Arcelor-Mittal aims to unite the worlds two largest companies in steel under one roof. Mr LN Mittal president of new combined board said "We need to get the business going now. We had a huge battle but now we have huge agreement."
Mr Roland Junck new CEO of Arcelor-Mittal has to deal with two differing business cultures. He said "Instead of unifying the cultures, we should make use of the advantages and regard them as potential." Mr Junck added that despite the 5 month battle to block the merger, he has no difficulty in seeing the new partner in a positive light. He said "Im convinced that this bitterness is not that important."
Mr Junck said that Arcelor Mittal aims to begin presenting itself to clients as a unified concern. Several adjustments will also have to be made internally, such as implementing the social aspects of the Arcelor working conditions model at Mittal and initiating greater decentralization at Arcelor.
There is much to do in building the new business. During the merger, which is to be completed by the spring of 2007, various businesses will have to be sold for competition reasons. Among them are plants in Germany, Italy and Poland to ensure that Arcelor Mittal will not have a dominant position in heavy iron girders. Arcelors recently acquired Canadian company Dofasco is also an urgent issue.
Taiyuan to diversify in electrical & auto steel
It is reported that Taiyuan Steel plans to build up a 5 million tonne steel plant at Lvliang in Shanxi province with an investment of 20 billion yuan to make electrical and auto grade steel. POSCO is rumored to be in talks with Taigang about partnership in the new steel project. It plans to submit the proposal to China's top planning body NDRC for final approval within this month.
If NDRCX approves Taiyuans proposal, it would become the third mega steel project approved by NDRC after it tightened the investments in steel sector followed by Angang's 5 million tonne Yingkou project and Hangang's 5 million tonne project.
Taiyuan Steels 2 million tonne SS project is scheduled to come on stream in September, which coupled with its existing 1 million tonne capacity, would make it the largest SS producer in the world.
Arab Bank launches debt syndication for USCO
Arab Banking Corporation as Sole Underwriter and Mandated Lead Arranger has launched the syndication for United Stainless Steel Company. The total facility amount is $153 million and the tenor is 10 years post completion. ABC is the Bookrunner and Facility Agent.
The facility will be used to part finance the construction of a 90,000 tonnes per year cold rolled stainless steel mill in the Hidd Industrial Area in the Kingdom of Bahrain. USCO was established in February 2005 and production is scheduled to start in April 2007.
Valin Hengyang develops coupling and alloy steel round billet
Valin Hengyang Pipe (Group) Company has successfully developed coupling material pipe of specification 3653, which is beyond the limitation of the large seamless pipe machines. These pipes are used as the complement materials of large diameter oil sleeve pipes.
Valin Hengyang Pipe also developed HSL450S large billet suitable for rolling tubes for sea and ocean use. The round billet is of corrosion resisting low carbon high alloy steel quality with strict control on chemistry and 100% vacuum degassed with a longer refining period.
Polish steel distributors upbeat on strong European demand
Due to strong European steel demand Polish steel makers and distributors are reported to be upbeat and predict that another wave of steel prices increases is coming while the end users are complain about high steel prices. They said that when steel prices jumped in 2004, Chinese demand was blamed but now, it is European demand which is to be taken into account.
Mr Andrzej Ciepiela the director of the Polish Union of Steel Distributors said Last year, the worlds steel production grew but it fell in the EU. Today, the demand grows dynamically in Europe. The EU is importing more and more steel products. The situation is similar in Poland. Steel storages are empty. This is a sign that demand has grown and so will the prices.
Mr Grzegorz Dolkowski deputy CEO of steel distributor Drozapol Profil said Weve been watching steel products becoming more expensive for several months. Reinforcing bars prices have exceeded to the highest extent. Prices grow every week. We can see price increase of PLN 50 (Euro 12.9) a tone or even 2.5% a week. The situation is similar to what happened in 2004 when steel product prices jumped suddenly.
European steel makers including Salzgitter, ThyssenKrupp, Corus and Arcelor have said that they will consider price increases and European distributors predict that in the fourth quarter the prices will grow by Euro 30. Mr Jerzy Bernhard CEO of another steel distributor Stalprofil said that I believe that the growth rate may be similar in Poland, or even higher. However, thanks to strong zloty it wont be so troubling.
Minmetals and Tianjin to expand port cooperation
China Minmetals and the Tianjin government have signed an agreement to expand their cooperation on harbor, logistics and on the construction of a new costal district in Tianjin.
However a report cited an official of Minmet as saying that there will be no immediate impact from the agreement. He said "This is a long term strategic cooperation agreement. We do not have plans for immediate action."
Coal mine roof collapse kills 10 in Xinjiang region
Xinua has reported that a coal mine collapse at a privately owned Guangyuan Colliery in Fukang city in the far west Xinjiang region in China killed 10 miners and left 3 others missing.
The cave in occurred on Sunday at 3:10 PM when 14 miners were working in the underground mine and only 1 miner managed to escape. Xinhua said that rescuers ad located the bodies of ten miners apparently killed by poisonous gases released by the shaft's collapse, which may have been triggered by a landslide. The search is continuing for the other 3 missing.
The coal mine has a license to produce 30,000 tons per year.
Explosion kills 2 coal miners in Kemerov in Siberia
It is reported that 2 miners were killed and 1 miner is missing in a blast in Pervomayskaya coal mine in Berezovsky in Kuznetsk coal basin of Kemerovo Region in West Siberia in the early hours of Monday.
A spokesman of the Kemerovo Region said that 4 mine workers were working underground when explosion occurred, probably caused by leakage of methane and only 1 miner managed to escape to the surface. The spokesman said rescuers were removing debris to locate the missing miner.
The administration press service said that Mr Aman Tuleyev governor of the region has ordered all coal companies and mine owners to check safety conditions at all the regions mines.
Russian coal mining giant Kuzbassugol will pay 1 million rubles ($37,000) in compensation to the families of miners killed in the explosion.
SA steelmakers fear dumping threat from China
It is reported by Platts that steelmakers in South Africa feel their country is prone to steel dumping by China which has become a net exporter of steel this year but government officials feel there is no need to panic.
Mr Andre de Nysschen CEO of Highveld Steel and Vanadium at a briefing for analysts in Sandton said "We are always concerned about that because we are looking at a sure thing in this country and the government response to the damage caused by cheap imports to the textile producers in this country. I am very worried about it, coming from a farming background and seeing the dire straits our farmers are in, I can't understand it when the United States and Europe protect their economies, then why we shouldn't protect ours?" It is significant that steel imports are up this year. The threat is always there. China has a phenomenal capacity and is coming from an undervalued currency base and I think we should be concerned about that."
Mr Rick Reato COO of Mittal Steel SA has been reported as saying that he doubted some reports about HR coil steel from China selling for less than half of the US price. He said the Chinese were so far only exporting low added value products like slabs and billets, but was catching up fast.
South Africa abolished its 5% import duty earlier this May and is standing by its decision. Mr Nimrod Zalk the head of department of trade and industry's strategic competitive unit said "We have not seen voluntary price constraints in the past and that is one reason why we dropped the 5% duty. Also with China becoming a net exporter of steel any over production is likely to have an effect on international prices; so we can say in the absence of domestic competition we do not have any problem with import competition coming in."
Lake Sebu villagers urge for stopping coal mining
It is reported that villager of Sitio Kibang in Barangay Ned in Lake Sebu region of South Cotabato in Philippines are protesting against the coal exploration activities by MG Mining and Energy Corp and Daguna Agro Minerals Inc, which they feel will destroy their livelihood due to it's impact to the environment and have urged the government to stop coal mining.
The villagers said "We are sure that mining of carbon would destroy our lands which are our main source of livelihood. We are opposed to the coal exploration activities because it is not only us from Ned who will be affected but from three provinces.
MG Mining was granted a coal operating contract by the government, through the Department of Energy, in 2005. Under their contract, exploration phase shall be four years from the date of agreement. The terms of the contract, however, said that if there is commercial quantity, production permit maybe granted for at least 20 years.
As per reports Lake Sebu coal mine in South Cotabato and Sultan Kudarat has the largest potential reserves among its various coal projects at 360 million tons.
Chongqing shares to be auctioned
It is reported that 160 million corporate shares of Chongqing Steel will be auctioned off in Shenzhen by Shenzhen United Auction Co Ltd and Shenzhen Justice Auction Co Ltd which are entrusted by He Yuan Intermediate Court.
Chinese steel major Chongqing Iron & Steel Co Ltd was founded in August of 1997.and listed in Hong Kong H stock market on October 17 same year. In December 7, 1998, approved by Ministry of Foreign Trade and Economic Cooperation it allowed foreign investment to enter its share composition. Out of Chongqing Steels 1.06 billion shares, 650 million shares are held by its parent Chongqing Iron and Steel (Group) Co Ltd with the remaining 413.9 million shares going to foreign investors.
Leighton sees strong growth in construction segment
Australia's largest construction company Leighton Holdings Ltd has reported a 28% rise in annual net profit to A$276.07 million for the 2005-06 year. Leighton's total operating revenue, including joint ventures, was up by 32% to A$10.03 billion in the year to June 30, 2006.
Mr Wal King CEO of Leighton said that the outlook for the group remained very positive, driven by a record level of work, an extended construction and resources upswing in Australia, greater geographic diversity in Asia, and the company's very strong balance sheet. He said "The group has a record level of work in hand and the prospect of maintaining work at similar levels given the construction and resources opportunities still emerging in Australia, and the broad range of prospects in Asia. This workload is expected to translate into revenue of more than A$11 billion in 2006-07 and the directors are confident of reporting a strong profit increase for the year."
Mr King said the major contributors to the group's results had been construction activity for a number of large Australian infrastructure projects, contract mining in Australia and Asia and another strong property development performance. He said "Contract mining of coal and iron ore will substantially drive activity in the resources sector, with the newly acquired HWE business expected to make a solid contribution."
Changcheng Special Steel forms crack team for bar project
It is reported that Changcheng Special Steel has formed a special team to ensure that its 500,000 tonnes bar continuous casting production line commences production as per schedule.
With the commencement of this project Changcheng Special will become only mill to operate special bar continuous casting line in Southwest China.
