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 Indian News
0blt1JSW Steel to set up 10 million tonne steel
0blt1BHEL unveils plans for overseas acquisitions
0blt16th Asian Steel Conference in Mumbai
0blt1PEB Steel Vietnam to supply PEB to Reliance I
0blt1NTPC secures $300 million loan through ADB
0blt1CCEA approves NE transmission line project
0blt1Steel Strips Wheels to set up a new plant in
0blt1JSW Steel allots equity warrants
0blt1Chowgule Steamships appoints Mr Patwardhan as
 
 International News
0blt1Global crude steel production grows by 11% in
0blt1CVRD CEO signs deals with Beitai, Maashan and
0blt1Virgin pledges all of its profits to fight
0blt1Nippon Steel to talk with Mittal Steel on US
0blt1Cleveland-Cliffs signs LoI to acquire 30%
0blt1JFE clarifies on the report of its investment
0blt1Mr Nazarbavev said that Karaganda mine
0blt1Hyundai Heavy signs SBQ plates deal with
0blt1UMMC to build zinc plant in Kirovgrad
0blt1Northwest Pipe to supply pipes for Seymour
0blt1Malayawata plans to switch to 50% value added
0blt1European Nickel secures finance for Caldag
0blt1Mr Mordashov to return as CEO of Severstal -
0blt1Murchison Metals commences mining operations
0blt1Court restricts picketing by striking workers
0blt1Arch Coal launches stock buyback program
0blt1Solid Energy applies for clearance to acquire
0blt1Anglo's coal unit sues South African
0blt13 coalminers die in Dobropolskaya mine in Ukr
0blt1South Korean SK takes stake in Australian
0blt1Peabody's Lee Ranch mine bags Safest US
0blt1Tennessee halts work at Zeb Mountain coal min
0blt1Coruss investment project at Port Talbot to
0blt1Terramin to explore Oued Amizour zinc
0blt1Kenyas Mombasa port acquires Sh280 million eq
 
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 Special Steel News
 
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News Friday, 22 Sep, 2006
JSW Steel to set up 10 million tonne steel plant in West Bengal

It is reported that JSW Steel & JSW Energy have firmed up plans to set up a 10 million tonne steel plant at Guptamuni near Kharagpur in Bengal and 1000MW power plant in Birbhum.

In the first phase, it would install a four million tonne plant along with a 1,000MW thermal power unit at an investment of Rs 10,000 crore and Rs 4,000 crore respectively. The capacity of the steel plant would be then raised to 10 million tonne in second phase.

Mr Sajjan Jindal met WB CM Mr Buddhadeb Bhattacharjee on Thursday to discuss details of the project. Mr Sajjan Jindal while speaking to media at Writers Building said the pre feasibility report for the project is complete and the company would sign the shareholders agreement over the next one month. West Bengal Industrial and Development Corporation would have a token stake in the project.

JSW has asked WB government for 5,000 acres for the steel plant and 1,000 acres for the power plant. JSW Steel intends to get the steel ore from Jharkhand and Orissa.

BHEL unveils plans for overseas acquisitions

Bharat Heavy Electrical Limited is reported to be on the prowl and could be soon acquiring a foreign manufacturing base to enhance its capacity and technological expertise. Acquisition would be geared towards getting new technologies and expertise, intellectual property rights, product extensions and market access.

Mr AK Puri CMD of BHEL told ET that We are looking at companies with strong intellectual property rights, which will complement BHELs businesses, be it power equipment, transmission, transport or defense. We are looking at small to medium sized companies, and for that Rs 1,000 crore should suffice.

To plan their overseas venture, the power equipment major had constituted a group within the company to vet options, and consultants would be appointed on a case by case basis.

BHEL has a cash reserve of over Rs 4,000 crore and a turnover of 14,410 crore in 2005-06.

6th Asian Steel Conference in Mumbai

One of the biggest annual gatherings of iron & steel industry professionals in India 6th Asian Steel Conference is scheduled to be held on 29th to 30th September 2006 at The Leela Hotel in Mumbai in India. Dr Akhilesh Das state minister of steel would be inaugurating the event followed by keynote address by Mr Moosa Raza president of Indian Steel Alliance.

The conference is focused on short term & long term perspective of raw materials, emerging products and emerging markets for global trade, technology as a driver for cost competitiveness, present regional industry profiles& future prospects and facilitators & inhibitors for logistics in steel industry.

The conference is organized by Steelworld and SANKET Trade Fairs. To know more about it please visit
[url]http://www.steelguru.com/asian_steel_conference/index.php[/url]

PEB Steel Vietnam to supply PEB to Reliance Industries

PEB Steel Vietnam has won a contract to design and fabricate steel building for Reliance Industries Limiteds refinery project. It would ship 1,200 tons of pre engineered steel products to Jamnagar in Gujarat for the project in 3 weeks time.

Pre engineering steel building producer, PEB Steel now has two factories in the southern Ba Ria Vung Tau Province and six offices in Vietnam. Its third facility in the northern province of Bac Giang is under construction and expected to come on line in March next year, ramping up the producers annual capacity to more than 90,000 tons of steel products.

NTPC secures $300 million loan through ADB

NTPC Ltd signed a loan agreement for $300 million with the Asian Development Bank to part finance two of its power projects. Banc of America Securities Asia Ltd, a subsidiary of Bank of America, has underwritten $225 million of the loan while ADB is funding the remainder through one of its schemes.

The loan will finance a portion of NTPC's planned power generation capacity expansion, including a portion of the foreign exchange requirements of the Sipat Super Thermal Power Plant project (stages I and II) in Chattisgarh and the Kahalgaon Thermal Power Plant project (Stage II) in Bihar.

NTPC said in a statement that this is the first time ADB has lent money to an Indian corporate through its Complementary Finance Scheme. Loans under the scheme are funded by commercial lenders, with ADB acting as a lender of record.

CCEA approves NE transmission line project

Indias Cabinet Committee on Economic Affairs has approved a Rs 975.96 crore project including interest during construction of Rs 45.72 crore for Eastern Region Strengthening Scheme-I of Power Grid Corporation of India. The project would be completed within 36 months.

Besides benefiting the constituents of the Eastern Region, the transmission project would facilitate transfer of surplus power from Eastern part of the Eastern Region grid to the central areas from where it would get further transmitted through the existing transmission system.

Steel Strips Wheels to set up a new plant in Chennai

Reuters has reported that Steel Strips Wheels Ltd plans to set up a plant in Chennai to make 6 million wheels a year anticipating orders from auto makers in southern India such as Toyota Motor Corp, Ford Motor Co and Hyundai Motor Co.

Steel Strips plans to spend a total of 1.5 billion rupees to build the plant in two phases and fund it through equity and debt. An investment of 1.05 billion rupees would be made for a capacity of 3 million wheels in the first phase that would start production by end of 2007.

Mr Dheeraj Garg MD told Reuters "The plant is being set up to cater to the domestic demand as well as exports. We are also planning to look at Hyundai for export to Europe and possibly Thailand. India is seen as a low cost country for auto components and export market has suddenly opened for us."

Steel Strips supplies wheels to auto makers including Maruti Udyog Ltd, Tata Motors Ltd, Mahindra & Mahindra Ltd. and the Indian units of Honda Motors and Piaggio. Steel Strips has a wheels plant in Punjab with a capacity of 5.4 million units a year and was raising it to 7.5 million units by January.

JSW Steel allots equity warrants

JSW Steel Ltds share allotment committee, at its meeting held on September 21st 2006, has allotted 5,00,000 Series A Warrants and 15,00,000 Series B Warrants to Mr Sajjan Jindal & 65,00,000 Series A Warrants and 65,00,000 Series B Warrants to Samarth Holdings Pvt Ltd.

Each of these warrants are convertible into equity shares at the option of the warrant holders into 1 equity share of the face value of Rs 10 each of the company at a price of Rs 272.

The 70 lakh Series A warrants are convertible into equity shares on or before March 31st 2007 and 80 lakh Series B warrants are convertible into equity shares between April 1st 2007 and March 22nd 2008.

The shareholding of 45.15% held by promoter as on June 30, 2006 will increase to 47.49% on conversion of 70 lakh warrants on or before March 31, 2007 and will further go up by 49.93% on conversion of balance 80 lakh warrants between April 01, 2007 to March 22, 2008.

Chowgule Steamships appoints Mr Patwardhan as MD

Chowgule Steamships Ltd has informed that Mr M P Patwardhan executive director has been elevated to the rank of the Managing Director effective September 01st 2006 by the Board of Directors vide its Circular Resolution dated September 18th 2006.

Global crude steel production grows by 11% in August 2006

World crude steel production for the 62 countries reporting to the International Iron and Steel Institute was 101.640 million tons in August 2006, which is 11% higher than for the same month of 2005. The production during January to August 2006 amounted to 798.767 million tonnes an increase of 9.3% over corresponding period of 2005.

The growth in crude steel production during August 2006 among regions was again led by Asia which registered growth of 13.1%. European Union (25), CIS, North America, South America, Oceania and Middle East also registered positive growth of 10.5%, 9.7%, 9.8%, 6.7% and 2.6% and 0.7% respectively in August 2006 YOY. Only Africa witnessed negative growth of 4.9% in August 2006.

The crude steel production during January to June 2006 was led by Asia, which produced 421.112 million tonnes registering a growth of 13.3%.

RegionAug'05Aug'06ChangeJ-A'05J-A'06Change
Asia491865561813.1%37158442111213.3%
EU (25)131151449110.5%1243091314095.7%
North America10154111369.7%83726893846.8%
CIS (6)9285101919.8%73877787516.6%
South America376440166.7%3014629492-2.2%
Africa14471376-4.9%1180011193-5.1%
Middle East120812170.7%966998752.1%
Oceania7607802.6%575957780.3%


In 000 tonnes
Source IISI

Among the top 20 nations, China as usual stood first with 36.7 million tonne production of crude steel.

SlRegionAug'05Aug'06ChangeJ-A'05J-A'06Change
1China313733670017.0%22782727157219.2%
2Japan923296114.1%75388764401.4%
3United States7556841011.3%61627675289.6%
4Russia547959709.0%43510465116.9%
5South Korea379940175.7%31387319631.8%
6Germany3318387216.7%29702311965.0%
7Ukraine3098353614.1%25035270177.9%
8India327435207.5%242962779914.4%
9Other Europe263228146.9%196512177010.8%
10Brazil263828126.6%2105620015-4.9%
11Turkey185019595.9%137961532211.1%
12Taiwan, China1508177017.4%12687133405.1%
13Italy1549176413.9%19280202705.1%
14Canada1197134912.7%10290104751.8%
15Spain13661300-4.8%1193311795-1.2%
16Mexico12941270-1.9%1105910494-5.1%
17France12351193-3.4%12954135284.4%
18UK1057118011.6%894095226.5%
19Belgium73092026.0%702575247.1%
20Poland65890036.8%5512666520.9%


In 000 tonnes
Source IISI

CVRD CEO signs deals with Beitai, Maashan and Shougang

Companhia Vale do Rio Doce announced that 2 long term contracts to sell iron ore to major Chinese steelmakers were signed during the visit of its CEO Mr Roger Agnelli to China.

CVRD has extended its long term contract with Beitai Iron & Steel involving shipments of 4.2 million tons of iron ore per year up to 2031 in line with Beitai's new long term Contract of Affreightment. This contract has the longest duration amongst all contracts ever signed by CVRD with its Chinese clients. The volume under such contract with Beitai may be increased up to 7.2 million tons per year from 2009 onwards.

A new long term contract was signed with Maanshan Iron & Steel involving iron ore shipments of 7.3 million tons per year from 2007 to 2013. The volume under such contract with Maanshan may be increased to 8.3 million tons per year from 2009 onwards. In terms of annual volume, this is the second largest contract ever signed by CVRD with its Chinese customers.

In addition to these contracts CVRD has signed a strategic alliance agreement with Shougang Iron & Steel Group to enhance their commercial relationship while developing partnerships in mining and steel, studies about logistics, coal, manganese and ferroalloys and technical cooperation in steelmaking, environmental protection and work safety projects.

Virgin pledges all of its profits to fight global warming

Aviation baron Sir Richard Branson has promised to plough all future profits estimated at $3 billion from his airline and train businesses into renewable energy projects and investments in the next 10 years. Sir Richard founder of Virgin Group of companies made the announcement in New York at the Clinton Global Initiative headed by former US president Mr Bill Clinton and aimed at tackling key global problems.

Sir Richard Branson said "We have to limit our dependence on fossil fuels. We hope that this contribution will help in some small way to enable our children to enjoy this beautiful world.''

A Virgin Group statement said that Sir Richard Branson and his company believe that all businesses, especially those involved in transportation, energy, and particularly fossil fuels such as coal, must be at the forefront of developing environmentally friendly business strategies with a focus on replacing traditional energy with energy coming from renewable sources. To demonstrate the commitment, the company said that all dividends, realizations and share sales from Virgin's transportation interests will be invested into renewable energy initiatives to tackle emissions related to global warming.''

Virgin said that the initiative would take the form of investment in new fuel technologies through an investment unit called Virgin Fuels, for which Branson's group has pledged $400 million in the next three years.

The Clinton Global Initiative, which is focused on climate change, global health, easing religious and ethnic conflict and reducing poverty said that it had raised a total of $5.7 billion this year including the pledge from Sir Richard.

Nippon Steel to talk with Mittal Steel on US auto venture

Worlds 3rd largest steelmaker Nippon Steel Corp announced that it plans to soon start talks with Arcelor Mittal for increasing their auto sheet capacity in the US. The talks could take place at the International Iron and Steel Institute's annual conference in Buenos Aires in early October.

Mr Akio Mimura president of Nippon Steel during an interview told Reuters that the company wants to resume talks with Mittal Steel as soon as possible now that the new management of the soon to be merged Arcelor Mittal has been appointed. He said "We need another 500,000 tonnes a year line for auto sheet steel in the US to keep up with strong demand from Japanese carmakers there.

Nippon Steel and Mittal Steel have a 0.5 million tonne JV I/N Kote in Indiana having a continuous galvanizing line for producing auto grade sheets for car makers.

Cleveland-Cliffs signs LoI to acquire 30% stake in MMXs Amapa project

Cleveland-Cliffs Inc announced that it has signed a non binding term sheet with Centennial Asset Mining Fund LLC, an affiliate of Brazilian MMX Mineracao e Metalicos SA, for the purchase of 100% of the shares of Centennial Asset Amapa Participacoes SA. Centennial Amapa owns 30% of the Amapa Project.

Under the non-binding term sheet, Cliffs would purchase 100% of the shares of Centennial Amapa for $133 million. Cliffs would provide technical support for the construction and operation of the Amapa Project and MMX would provide corporate and institutional support services. It is anticipated that approximately $275 million in future capital will be required for the Amapa Project.

Pursuant to the term sheet, Cliffs would be responsible for 30% of such future capital. Closing is subject to completion of due diligence, completion of financing and negotiation and execution of definitive documents for the transaction, as well as approval of Cliffs' Board of Directors.

Amapa iron ore project consists of a 192 kilometer railway and 71 hectares of real estate property on the banks of the Amazon River for the development of an iron ore terminal. The Amapa Project is currently under construction and expected to produce 6.5 million tonnes of direct reduction grade pellet feed annually once fully operational.

JFE clarifies on the report of its investment in China

Japan's second-biggest steel maker JFE Holdings Inc clarified that it is considering building a new plant in China to produce steel sheets for use in automobiles to keep pace with growing demand in the region.

A JFE spokesman said it is considering building the new plant but nothing concrete has been decided. On the other hand, he denied the Nikkei report that it had decided to scrap the blast furnace plan, adding the furnace and the new plant were two separate issues.

The comment came after the Nihon Keizai business daily reported earlier in the day JFE has abandoned plans to build a blast furnace in China and will instead build a new plant for auto use steel sheets.

The Chinese government in July 2005 announced regulations on foreign investment in the steel industry and restrictions on construction of new facilities and the companies decided to postpone making a final decision for about a year. The JFE spokesman said the company is looking out for the next moves by the Chinese government. He added that the government's regulations on foreign investment were one of the reasons for the wait.

Mr Nazarbavev said that Karaganda mine accident was unforeseeable

Reuters has reported that Mr Nursultan Nazarbayev president of Kazakhstan said that an explosion in a coal mine owned by Mittal Steel that killed 41 people was a tragic but unforeseeable accident. Mr Nazarbayev said "The Karaganda basin has one of the most concentrated levels of methane gas. These gas releases will always happen. We can't guard against it and very much regret it."

Mr Nazarbayev said that the Karaganda basin has greatly improved the safety technology in recent years. He said "But it's impossible to foresee everything. The miners know this."

As per reports although police are investigating the accident, officials in Kazakhstan take their cues from Mr Nazarbayev who has been ruling the country since 1989.

Hyundai Heavy signs SBQ plates deal with Jiangsu Shagang

Worlds largest shipbuilder South Korean Hyundai Heavy Industries announced that it has reached a preliminary agreement with Jiangsu Shagang Group Co to import 180,000 tons of steel plates for ship hulls annually from the Chinese steelmaker.

It said that, with the deal, Hyundai Heavy Industries will buy a combined 700,000 tons of steel plates for shipbuilding from China beginning next year about 22% of its annual demand of 3.2 million tons for 2007.

UMMC to build zinc plant in Kirovgrad

The Urals Mining and Metallurgical Company has selected a site for the construction of a plant to produce up to 140,000 tonnes of metallic zinc per year on the premises of a former copper smelter in Kirovgrad that is now a poly metals production branch of the group's Uralelektromed works. It was reported earlier that the preliminary cost estimate for the project was $380 million.

Mr Andrei Kozitsyn GD of UMMC told reporters that the timetable for beginning construction would depend on resolving the issue of electricity supplies for the future plant. He said "The utilities are promising to give us the final specifications by the end of the week, and then we will be able to assess how much this will cost us. The decision itself in regards to the selection of a site has been made."

Mr Konstantin Plekhanov technical director of UMMC said "We propose to start building the plant to produce metallic zinc in the Sverdlovsk region next year. We're at the planning stage now. Capacity will be up to 140,000-150,000 tonnes of zinc annually."

UMMC needs the smelter because its Elektrozinc plant in Vladikavkaz is too small to process all of the currently available raw material. In addition, UMMC plans to increase its upstream operations.

Northwest Pipe to supply pipes for Seymour Capilano tunnel project

Northwest Pipe Company announced that it has been selected to supply $27 million worth of 16,000 feet of 120 inches diameter pipe for the Seymour Capilano tunnel project near Vancouver in British Columbia. The delivery is scheduled to begin in the first quarter of 2008.

Northwest Pipe will manufacture these pipes at its facilities at Adelanto in California and Portland in Oregon

Northwest Pipe Company manufactures welded steel pipe in three business segments. Its water transmission group is a leading supplier of large diameter, high pressure steel pipe products that are used primarily for water transmission in the US and Canada. Its tubular products group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its fabricated products group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has 9 manufacturing facilities across the US and Mexico.

Malayawata plans to switch to 50% value added products

Malayawata Steel Bhd is considering an investment of RM200 million to diversify into higher grade steel products used in the manufacturing, oil and gas and automotive sectors.

Mr Datuk Lim Hong Thye president after the companys AGM in Petaling Jaya told reporters that such a plan would involve the setting up of a new facility adjacent to its Prai factory. He said We are now undertaking a study to produce higher engineering steel products in a more economical way. We will make an announcement by February next year on the project.

Mr Lim said that Malayawata is looking at technologies from Japan and China and if everything goes according to plan production will start in 2008. Mr Lim said that Malayawata intends to bring the production of the new value added products to 50% of its production with long steel accounting for the balance.

Malayawata exports 30% of its 700,000 tonnes of long steel products while the balance is consumed in the domestic market.

European Nickel secures finance for Caldag project in Turkey

UK based junior mining company, European Nickel, is now reported to have secured a $175 million bank loan arranged by Standard Bank, Standard Chartered Bank and Societe Generale. The loan now makes a total of $300 million raised to bring the mining operation to production.

The Caldag project is located near Izmir in western Turkey. It is designed to produce 20,400 tonnes of nickel and 1,200 tonnes of cobalt per year in a mixed hydroxide product. The capital cost of the project is estimated to be $254 million and the full project development cost, which includes operating and other costs during the ramp up period, originally estimated at US$310 million has now been estimated at the $300 million which has been raised by the company.

European Nickel has recently signed an agreement with Greeces Larco to deliver 200,000 tonnes of ore from its Caldag mine in Turkey to the Larcos ferro nickel smelter at Larymna in Greece. Shipments to Larco will take place over a period of 12 months. Caldag has previously supplied some 33,000 tonnes of ore to Larco in 2003 during an earlier period of trial mining.

Mining is being resumed as part of the build up to the commencement of full scale construction. It is intended that there will be continuous mining at Caldag from now until the conclusion of the project life in 2020. European Nickel expects to start construction of the full scale plant this year with the first output of the mixed hydroxide product towards the end of 2007, following an estimated 12-month construction period for the precipitation plant.

Mr Mordashov to return as CEO of Severstal - Report

Russian Vedomosti citing unidentified people familiar with the situation reported that Mr Alexei Mordashov will return as CEO of Severstal replacing Mr Anatoly Kruchinin after an extraordinary shareholders meeting next month.

Mr Mordashov controls about 90% of Severstal, which plans to sell 85 million shares in a new offering.

Murchison Metals commences mining operations

Murchison Metals Ltd has officially become Western Australia's 6th iron ore miner as it has commenced mining operations at its Jack Hills project yesterday. Murchison aims to commence ore shipments to its North Asian customers within the next few months.

As part of the commencement of mining operations, the company has completed the development of the Jack Hills airstrip and a 23 kilometers access road between the mine site and the Cue sealed road.

This first stage of the Jack Hills development will produce 1.5 million tonnes a year, with Murchison aiming to increase production to 2 million tonnes per year by 2008. Stage two of the Jack Hills project involves increasing annual production of direct shipping high grade ore up to 25 million tonnes with iron ore being railed to a new port facility at Oakajee.

The other iron ore companies include Midwest Corporation Ltd, Portman, Mt Gibson BHP Billiton and Rio Tinto. Other companies currently investing in new iron ore mining projects are Fortescue Metals Group in the Pilbara and takeover target Aztec Resources in the Kimberley.

Court restricts picketing by striking workers near AK property

A Butler County judge granted a temporary restraining order Thursday immediately prohibiting members of AK Steel Corp.'s locked out union from picketing or assembling within 50 feet of any entrances or exits on the Middletown steel makers property or any property where the company conducts business.

Judge Andrew Nastoff issued the temporary restraining order against the union and its agents to prevent them from engaging in activities not allowed by the National Labor Relations Board. The order prohibits mass picketing that attempts to interfere, hinder or obstruct persons attempting to enter or leave AK Steel grounds. It also prohibits picketers from threatening, intimidating or performing acts of vandalism against the property of AK Steel employees, customers or other people entering or leaving AK property.

AK Steel had filed a motion in Butler County Common Pleas Court on Wednesday asking the court to prohibit members and agents of the International Association of Machinists and Aerospace Workers/Armco Employees Independent Federation Local 1943 from engaging in certain activities on or near AK Steel property.

Arch Coal launches stock buyback program

Arch Coal Inc announced that it will repurchase up to 14 million shares of its common stock, effective immediately. The buyback would be worth more than $370 million based on Wednesday's closing price of $26.45 a share. Arch Coal said in a release it will acquire the shares in the open market or through private transactions and the timing and number of shares will depend on market conditions.

The repurchase plan represents about 9.8% of Arch Coal's shares; the company had 143,544,602 common shares outstanding as of September 15th 2006.

Mr Steven Leer chairman and CEO in a statement said "The long term outlook for the US coal sector continues to strengthen and we believe that Arch's extensive reserve base, highly productive operations and skilled work force position the company for future success. As a result, Arch's board and management consider the company's stock to be an attractive investment option and we view share repurchase as an effective way to create value for shareholders."

St Louis based Arch Coal Inc is one of the largest coal producers in US, providing the fuel for about 6% of the electricity generated in the United States.

Solid Energy applies for clearance to acquire Newvale Coal

It is reported that New Zealands Commission has received an application from Solid Energy New Zealand Limited seeking clearance to acquire the entire share capital in Newvale Coal Co Limited. Commissions role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

Newvale Coal is a private mining company owned by the Highstead family. It operates the Newvale opencast mine, which is located in the Waimumu coal field in Southland. The Newvale mine primarily supplies lignite coal to domestic customers.

Solid Energy is a state owned enterprise that has coal mining operations in the Waikato, the West Coast and in Southland. Solid Energy primarily supplies bituminous and sub bituminous coal to both domestic and international customers.

Anglo's coal unit sues South African government & Thabex

Johannesburgs Business Day has reported that Anglo American Plc's coal unit is suing South Africa's department of minerals & energy department and a unit of Thabex Exploration over coal prospecting licenses.

Business Day citing Ms Anne Dunn spokeswoman of Anglos said that Anglo Coal has served court papers to the ministry to reserve its legal rights over coal prospecting licenses while talks to resolve the issue continue.

Abarawaki Investments, a unit of Thabex, was included in the court action as it had been granted prospecting rights over an area already held by Anglo.

3 coalminers die in Dobropolskaya mine in Ukraine

RIA Novosti has reported that 3 people have died of suspected gas poisoning in the second accident to hit a coal mine in Ukraine in a day citing Ukraines emergency situations ministry. The 3 miners' bodies were found at 23:30PM on Wednesday in the Dobropolskaya mine in the Donbass region in Eastern Ukraine.

The ministry said that the preliminary cause of death is poisoning by a mixture of gases.

At least 13 people were killed in after a gas leak in the Zasyadko coal mine in the same region earlier in the day.

South Korean SK takes stake in Australian Cockatoo Coal

South Korean SK Corp announced that its wholly owned Australian unit SK Australia Pty Ltd has decided to buy a 7.42% stake in Australian coal explorer Cockatoo Coal Ltd for about 3.23 billion won.

Cockatoo Coal is engaged in four coal exploration projects. SK said that a detailed timetable for development works has yet to be decided.

Peabody's Lee Ranch mine bags Safest US Surface Coal Mine in 2005 award

Peabody Energy's Lee Ranch Mine has earned the prestigious Sentinels of Safety Award from the US Department of Labor's Mine Safety and Health Administration for operating the nation's safest large surface coal mine in 2005. Mine employees achieved both zero reportable and zero lost time incidents during the year. Peabody operations have earned the Sentinels of Safety Award two out of the past three years.

Lee Ranch employees have worked two years and more than 1 million hours without a reportable accident as of August 2006.

Mr Gregory H Boyce president & CEO of Peabody said "Maintaining a safe workplace is a core Peabody value and is central to our mission. I'm proud of our employees at Lee Ranch for their leadership in safety and for continuing to demonstrate our vision of achieving zero incidents of any kind.

The Sentinels of Safety Award is the oldest safety award in the mining industry and is presented to mine operations that achieve the greatest number of employee work hours each year without an injury that results in lost workdays or days of restricted work activity. Lee Ranch has more than 200 employees and last year sold 5 million tons of coal.

Peabody Energy is the world's largest private sector coal company, with 2005 sales of 240 million tons of coal and $4.6 billion in revenues. Its coal products fuel approximately 10% of all U.S. electricity generation and 3% of worldwide electricity.

Tennessee halts work at Zeb Mountain coal mine

State regulators have halted work at National Coal Corps strip mine on Zeb Mountain in Campbell and Scott counties and proposed a $173,000 fine against the operators for cutting through two streams without permits.

The officials said that an August 3rd inspection revealed the company mined through two unnamed tributaries of Lick Fork without obtaining permits required under state and federal law.

It is the first of its kind since a change in state law gave the Tennessee Department of Environment and Conservation authority to stop work at coal mines the agency determines have polluted waterways.

Mr Bill Penny Nationals attorney said that he was still evaluating the details of the order but questioned its need and disagreed that there is a problem with permitting.

Coruss investment project at Port Talbot to complete soon

It is reported that Corus Strip Products UKs investment in its steel slab facility at Port Talbot to achieve 5 million tonne capacity is due for completion within a week.

Mr Phil Dryden MD of Corus Strip Products UK said "This investment is an expression of the highest level of commitment we have in Port Talbot steelworks and of our determination to meet targets of producing steel at a rate of 4.7 million tons of steel slab this year, and pushing for 5 million tons in 2007. This is the latest investment in our steel manufacturing facilities, which have seen over 300 million spent on capital during the last five years."

This has included a new furnace in 2002, an additional caster in 2004, as well as a complete refurbishment of the coke ovens and coal injection plant. The investment will improve the output and performance of the facility adding operational and environmental benefits.

Terramin to explore Oued Amizour zinc deposits in Algeria

Terramin Australia Ltd plans to make investments in the Oued Amizour mine in Algeria, which was previously explored by the state owned mining company ORGM and Terramin acquired a 65% stake in the deposit back in February 2006 agreeing to spend $6.6 million on exploration. Oued Amizour is located at the port town of Bejaia about 270 kilometers east of Algiers.

Mr Kevin Moriarty executive chairman of Terramin said that developing the zinc deposit was timed to meet growing Indian and Chinese demand coinciding with a forecast fall in supply. He said that Tarramin hopes that this area will turn into a giant mine but a lot more needs to be done to assess the deposit.

Kenyas Mombasa port acquires Sh280 million equipments

Kenya Ports Authority has commissioned new terminal equipment worth Sh280 million as a part of its on going Sh5 billion Mombasa port modernization program that began in 2002. It had bought 20 new terminal tractors at a cost of Sh140 million from the Netherlands, 5 forklifts from Sweden at Sh71 million and a set of pollution control equipment at Sh70 million from the UK.

The new pollution control equipment consists of booms, skimmers, storage tanks, workers' protection gears and power generators all meant to combat cases of oil spills in the harbor channel and on the beaches.

Last year, KPA bought ship to shore gantry cranes, rail mounted gantry cranes, 2 pilot, 3 tug, two patrol and two mooring boats.

 

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