To meet the increasing demand of coal in India, Coal India Limited has chalked out plans to increase coal production in the country by investing about Rs12,000 crore.

Mr Sashi Kumar CMD of CIL said that coal demand in the country is projected to grow to around 620 million tonnes by 2011 and at current levels of production, there would be a coal shortage of 40 million tonnes. CIL expects to raise production to 530 million tonne by then. About 40 million tonnes of coal is expected to come from captive mines while the remaining would come from Singereni Collieries.

Mr Kumar said that CIL has been investing Rs2,800 to Rs3,000 crore every year to enhance production and would produce 363 million tonnes of coal in 2006-07 as against 343 million tonnes in 2005-06.

The Dredging Corporation of India has been entrusted with the entire dredging job of 82.5 million cubic meters soil for the Sethusamudram Ship Channel Project by the Cabinet Committee on Economic Affairs. The cost of the dredging project is likely to be Rs 2,077.25 crore.

CCEA gave its approval for 69 million cu m of dredging in four packages to DCI on nomination basis. DCI had already been awarded the job to dredge 13.55 million cubic meters.

Earlier the Tuticorin Port had floated an international tender for dredging 69 million cu m for the second time, but the bidders had quoted rates in the range of Rs 5,000 crore. The first round of bidding had also been cancelled as the winner, a subsidiary of Korean firm Hyundai, had sought advance fund mobilization from the Government.

Sethusamudram Ship Channel Project envisages dredging of a ship channel across the Palk straits between India and Sri Lanka. The project will allow ships sailing between the east and west coasts of India to have a straight passage through India's territorial waters, instead of having to circumvent Sri Lanka. This will lead to a saving of up to 424 nautical miles and up to 30 hours in sailing time.

DCI is a public sector undertaking under the department of shipping.

Malaysian UMW Holdings Bhds wholly owned subsidiary UMW Petropipe (L) Ltd and ARA-MK Corporation India Pvt Ltd have entered into a share sale and subscription agreement with Multicoat System for a total cash consideration of approximately RM3 million.

UMW said in a statement that the agreement will see UMW Petropipe and ARA-MK to jointly acquire 40% of the issued and paid up share capital of a new company to be incorporated in India, to be known as Multicoat Systems (Pvt) Ltd.

Upon incorporation, MSPL will purchase and take over the business of Multicoat System, which is involved in providing corrosion coating services, mainly to steel mills and industrial customers in India's east coast.

Steel Authority of India Limiteds Salem Steel plant has won a total of 14 awards in different categories in the fields of employees performance and safety including Viswakarma Rashtriya Puraskar, Uyarntha Uzhaipalar Viruthu and the State Safety Award.

Mr P Matheswaran and Mr KR Sekar senior operator in SSPs CRM have received the prestigious Viswakarma Rashtriya Puraskar from the ministry of labor for their work related suggestion which resulted in a saving of Rs.1.44 lakh per annum.

The Uyarntha Uzhaipalar Awards, given to employees who make suggestions to improve safety, working environment and productivity, for the year 2003 of the Tamil Nadu Government has been awarded to Mr K Janarthanam senior operator of SSPs centralized electrical maintenance, Mr C Moorthy senior technician of CRMs mechanical department and Mr K Muthusamy senior technician of HRMs mechanical department. Mr R Ramalingam operator of SSPs HRM operation, Mr M Kuppan senior technician with centralized mechanical maintenance, Mr A Annamalai senior technician with centralized electrical maintenance, Mr P Subramanian senior technician of CRMs mechanical department and Mr K Sevugaperumal senior operator of mechanical methods have won the award for the year 2004.

The Tamil Nadu State Safety Awards under Scheme II and Scheme III were won by Salem Steel Plant for 2003 and under Scheme I and Scheme III for 2004. Scheme I is based on highest reduction in weighted frequency rate, Scheme II on lowest weighted frequency rate and Scheme III on longest accident free period in man hours.

Indias Cabinet Committee on Economic Affairs approved a budgetary support of Rs 80.84 crore for liquidation of outstanding statutory dues and salary and wages from January 1992 to August 2005 in respect of Hindustan Steelworks Construction Ltd and Bharat Refractories Ltd.

It would mitigate the hardships of the employees, thereby motivating them for better output and prepare them to achieve the goal of revival for the company.

Steel Authority of India Limiteds Rourkela Steel Plant plans to support the small scale industries of Orissa to help them become best in the country.

Mr BN Singh MD of RSP while addressing the 50th Plant Level Advisory Committee meeting last week pledged to make the SSI sector of the state of Orissa number one in the country. Mr BN Singh assured them of providing all possible support and help from the RSP. Mr Singh called the local SSIs to strive for the best in terms of quality and capability and urged them to brace themselves to cater to the future demands.

Mr H Sharma director of industries and MD of OSIC praised the RSP management for its pro active approach in sorting out differences with the local SSIs. He said RSPs vendor development module is exemplary and the manner in which RSP is giving importance to the local SSIs can be a perfect model for the other PSUs and new steel plants coming up in Orissa.

Attacks by Maoist rebels on mining and other commercial activities in Chhattisgarh, Jharkhand and Orissa are casting a shadow on investment plans by private players by adding another dimension to the difficulties of land acquisition and mineral linkages.

As, naxalites have been taking mineworkers as hostages and destroying industrial installations, it could cost the states dearly due to apprehensions from business houses resulting in slowing down of investments.

Statistics available with the union home ministry reveal that between January and July, rebels unleashed 18 attacks on mining and related activities in these 3 states, with Chhattisgarh facing 13 attacks.

Steel pipe maker Welspun Gujarat Stahl Rohren Ltd, which has announced diversification in oil and gas exploration blocks last week, plans to capitalize on its relationship as a supplier of pipes with oil explorers. Welspuns list of client includes oil firms like Chevron, Exxon Mobil Corp, Royal Dutch Shell and Oil and Natural Gas Corp to name few.

Mr Braja K Mishra CEO of Welspun told Reuters that "It will be easy for us to find partners because of our relationship with the oil and gas industry.

Mr Akhil Jindal Welspun's President said "The two businesses have the same operators, same explorers with whom we are dealing in and out. Financing for oil and gas assets is one of the easiest. We will take small stakes, so that exposure is not large."

Welpsun Gujarat and Australia's Beach Petroleum Ltd jointly bid for exploration rights in India's latest and largest round of licensing for oil and gas blocks.

Due to cheaper import from China, Indian steel tubes industry is finding it difficult to maintain margins and is moving towards value added segments to protect bottom line.

Mr N Srikanth president of the Tube Investments of India said Chinese are offering produce at a ridiculously low price due to government subsidies. The landed costs of Chinese imports are $50 to $60 less than the price of our products. We are trying to move away from commodity based production to more innovative products to address the pressure on margins. Production costs are also being reduced through analysis and value engineering.

Mr Yogesh Batra MD of Magnum Strips and Tubes explained that "The industry could only pass on 50 per cent of the rise in steel costs to customers. So the margins, which used to be 7% to 8% three years back, are now down to 2% to 4%. This year it is going to be too difficult.

Indias Cabinet Committee on Economic Affairs approved Adirayala Shaft project of Singareni Collieries Company Ltd for a coal production capacity of 2.144 million tonnes per year and net capital requirement of Rs 212.34 crore, after accounting for the revenues projected to be generated during construction of the project and the related capitalization and for a total outlay of Rs 452.30 crore.

Through this project 2.144 million tonnes of coal would be produced which will meet the demand of NTPC Ramagundam.

Japanese steel group has said that the recent rises in China's steel exports will only slightly impact the global industry's supply demand balance but cautioned that the situation needs to be monitored closely. China's exports of steel products is likely exceed its imports by about 25 million tons in 2006 but the demand in North America, Europe and southeast Asia has been strong enough to keep them from becoming excess inventories.

Mr Hajime Bada president of JFE and chairman of Japan Iron and Steel Federation Chairman said in a news conference said that exports to Japan have been very limited mainly because steel product prices in Japan are lower than in most other major markets. He said some wire rod exports from China to Japan have been increasing but overall Chinese exports are unlikely to increase much at least through this year and early next year.

However Mr Bada cautioned that Chinas aggressive exports may become a problem if global steel demand begins to weaken or some countries start to limit exports to protect their domestic industry.

Arcelor Brasil plans to invest $5 billion to $6 billion by 2012 to increase its capacity to 20 million tonnes from current 11 million tonnes by expansions and acquisitions.

Mr JosArmando Campos CEO Flat South America during a press conference last week said that the new combined group is also targeting higher capacity. He said "The group nowadays has installed capacity of 110 million tonnes per year and we aim to be at 150 million tonnes per year in coming years to consolidate our position as industry leaders. Brazil will be the group's platform to grow. Investments in acquisitions would be a small part of our total investment plan."

Arcelor Brasil is the South American subsidiary of the world's new largest steel group Arcelor Mittal. Arcelor Brasil comprises of steelmakers Belgo-Mineira, CST and Vega do Sul. Belgo controls Argentine steelmaker Acindar.

Abu Dhabi based investment firm The National Investor has last week signed financial advisory and capital raising mandates with Australian Boulder Steel to act as its exclusive financial advisor, lead manager, lead arranger and book runner. It is anticipated that the equity raising will be completed within approximately five months.

TNI will seek to raise $600 million of debt and equity, pending finalization of a bankable feasibility study, for a state of the art steel mill and seamless tube plant at Queensland in Australia to produce seamless tubes primarily for use in the oil and gas industries.

A newly established UAE based subsidiary of Boulder Steel will undertake the seamless tube project which consists of a steel mill and finishing line in Queensland that will produce, respectively, up to 350,000 and 175,000 tonnes per annum, and a finishing line in the UAE that will produce up to 175,000 tonnes per annum.

Mr Peter Wallner CMD of Boulder Steel said We are very grateful for the assistance and support of Abdul Rahman Falaknaz, our Dubai based director, and those who are arranging our financing for their work in preparing, negotiating and finalizing the contractual arrangements with TNI. We are excited to commence these fundraising initiatives and to move forward in the execution of Boulder Steel's long term strategy for developing its seamless steel tube businesses.

China Iron & Steel Association predicts iron ore import in 2006 to be about 312 million tonnes up by 37 million tonnes or 13.5% YoY from 2005 levels.

CISA has examined iron ore 2006 scenario from three aspects

1. Soaring steel output drives up iron ore import during the 10th five year plan period

In the 10th five year plan period, annual crude steel output in China surged by 220.8 million tonnes or 171.83% to stand at 349.3 million tonnes by 2005, with its proportion out of the globe's total rising from 15.2% to 31.1%. Meanwhile, iron ore import volume rose from 69.97 million tonnes to 272.26 million tonnes by 2005 up 2.93 folds. Nearly all incremental demand of iron ore import came from China in 2005.

2. Characteristics of iron ore importing since start 2006

In the past seven months of 2006, China imported a total iron ore of 186.081 million tonnes up by 32.237 million tonnes or 21.75% YoY. This is characterized by declining trend of import volume and growth over this period, month by month decrease in the average CIF price for ore import, mounting production of domestic ore and that the price of the home made iron ore concentrate drops to below the import's price

3. Growth in iron ore import volume to turn to be moderate

The iron ore import volume bears references with the total steel output growth, the domestic iron ore production and its replacement of import, as well as China's demand for import and the suppliers' capacity of feeding.

China's 4th largest port for handling coal, Rizhao Port plans to sell 230 million yuan denominated shares to help fund expansion to exploit Chinas rising demand for coal and iron ore. The proceeds will be used to fund an iron ore dock construction project costing 821 million yuan and an 860 million yuan coal export project.

The share sale would represent as much as 37% of the firm's enlarged share capital. China Merchants Securities is the underwriter for the share sale.

Rizhao Port is 86% owned by the state owned Rizhao Port Group and has total coal loading capacity of 35 million tons with 3 docks and iron ore loading capacity of more than 50 million tons with 6 docks.

Rizhao Port's public offering follows that of Daqin Railway, as China's rising coal demand spurs growth at both companies.

Each year, Fortune's ranking of Fastest Growing Companies provides a snapshot of America's economy, and this year the picture is drenched in oil. Last year 18 energy firms cracked the top 100 up from four in 2000. However following metal companies have made to the list.

From the September 18th 2006 issue of Fortune

Fortune's 100 fastest growing companies list is an annual ranking of US companies by 3 year growth in sales, profits and total return that meet key criteria for sales, profit and market capitalization size and sales and profit growth.

Zambezi Nickel Ltd announced last week that it has agreed to buy the Mavita nickel project in Mozambique from BHP Billiton Ltd. The deal will see BHPB transfer the Mavita title to Zambezi, which will then see it becomes the 100% owner operator of the projects two prospecting licenses in the Manica province.

In return, zambezi must spend a minimum of US$150,000 on the project over the next 18 months. In addition, BHPB has the right to re acquire 100% of the project anytime after the threshold of 200,000 tonnes of contained nickel equivalent metal at JORC inferred level is defined.

Should it decide to buy-back into the project, BHPB would pay Zambezi 2.5 times its past expenditures, as well as a 3% net smelter return during the life of the mine. If it doesnt buy back into the project, Zambezi would pay BHPB the 3% net smelter return.

BHPB also retains first right of refusal to any metal produced from the project.

China's ministry of supervision announced that 315 government officials and heads of state owned enterprises have been disciplined this year for owning shares in coal mines. According to the ministry the disciplined officials were from the public security, prosecuting departments and agricultural agency sectors.

Mr Chen Changzhi vice minister of supervision said "45 people are under judicial investigation. The ministry has received 1,022 reports of such offences and 928 have been investigated."

Mr Chen said that 5,357 officials and SOE leaders had declared shares in coal mines worth a total 755 million yuan since the end of last year. He said 709 million yuan had been withdrawn from coal mines across China since last December, accounting for 93.9% of such investment.

The government issued an ultimatum in August last year ordering government officials and heads of SOEs to report their investments in coal mines and to sell their shares by September 22nd 2005.

According to figures compiled by the Raw Material Data Aggregation Service of Management Science Associates Inc, scrap processors were paid slightly more for their ferrous scrap grades in September gaining back $10 to $20 per ton pricing they lost in August.

As per RAMDAS, figures for all regions of the US combined showed per ton price gains of $17 for #2 Shredded Scrap, $13 for #1 HMS and $8 for the Prompt Industrial Composite grade of new production busheling and bundles. Regionally, some of the strongest gains were seen in North Central/East region, where #2 Shredded Scrap was purchased at an average rate of $20 more per ton by the mills. The #1 HMS grade in that region also gained $14 in value based on September purchases. The gains were narrower in the North Midwest and in the South. In both regions, the Prompt Industrial Composite grade inched up just $2 per ton and #2 Shredded Scrap gained $12 in value.

RMDAS is a service of Management Science Associates Inc Pittsburgh. Its Ferrous Scrap Price Index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.

It sir ported that Thailands G Steel Plc's corporate rating by Moody's Investors Service was cut to B2 from B1, following the completion of its purchase of up to $180 million in convertible bonds of NSM Plc, which could be converted into an approximately 33% stake in NSM over the next 18 months.

Ms Angela Choi Moodys lead analysts said "Despite the potential synergies and improved domestic market position arising from the alliance with NSM, the downgrade reflects Moody's concern over G Steel's weakened financial profile as a result of an additional $120 million debt on its balance sheet and its aggressive growth appetite.

Moody's said that G Steel had funded the debt portion of the NSM investment through a one year bridge loan, leading to a refinancing risk in the next 12 months.

Dawn has reported that 9 companies are competing to set up a 1,200 MW imported coal based power plant near Karachi as they have submitted statements of qualifications by September 20th 2006 to Private Power and Infrastructure Board in response to their invitation.

The companies include Sumitomo of Japan, Siemens and Reinhaul of Germany, Al-Jumaih Group of Saudi Arabia, AES Corporation of the US and Malakoff of Malaysia.

The statement of qualification would be evaluated by a committee for pre qualification and ranking by October 20th 2006. The PPIB will notify pre qualified sponsors on November 1st and issue letters of intent on Nov 15 this year to two bidders. The successful bidder will be required to carry out a detailed feasibility study and then negotiate tariff.

According to provisional data from the ministry of finance, Japan's steel exports rose for a fourth month in August in row gaining 18% YoY over an year ago.

Japans Steel exports rose to 3.03 million tons last month while imports rose for the first time in 12 months in August to 735,137 tons.

Mr Philippe Darmayan has been appointed in Arcelor Mittals management committee board this month as CEO Arcelor Mittal Steel Solutions & Services (AM3S)

Mr Philippe Darmayan has been executive VP in charge of Arcelor Steel Solutions and Services (A3S) since January 2005. Before that, he was CEO of Ugine & ALZ, which groups European flat stainless businesses.

A graduate of French business school HEC, Mr Philippe Darmayan joined Arcelor to lead the transformation of Ugine & ALZ in 2002, Before, that, he held various managing positions in the aluminium businesses of Pechiney Group, which he joined in 1996 and before that he was plant director and managing director of Franco-Belge de Fabrication de Combustibles, a subsidiary of Framatome.

Reuters, citing people close to the deal, has reported that Australian Straits Resources Ltd is planning a $400 million initial public offering in Singapore and that the deal would be for some of Straits Asian energy and trading assets and would likely take place in the fourth quarter.

Reuters said "Straits, which owns all of the assets, is doing an IPO to sell approximately 40% of coal mining operations and other assets and investments in Asia, including Indonesia.

The new company would be called Straits Asia Resources and its assets would include its coal mining operations in Indonesias Sebuku and its coal trading business in Singapore. Straits Mount Muro gold mine will not be included in the sale.

As per reports, Macquarie Bank is lead managing the IPO and the prospectus is expected to be filed in the next few weeks.

South African Richards Bay Coal Terminal created highest daily coal loading record last week by loading 409,809 tonne, surpassing a previous record of 397,273 tonnes.

RBCT is owned by coal exporters including BHP Billiton and Anglo American Plc and has capacity to ship 72 million tons a year.

SANA has reported that Mr Khaled Ezziddin director of Hissia Industrial City at Homs in Syria during a meeting with an Iranian delegation headed by Mr Hassan Akhwand discussed the possibility of establishing a private 28 million square meter Iranian industrial city on the ground of Hissia.

As per repots, the new industrial city will initially have a steel mill with production capacity of 80,000 tons per year in addition to other industries including power transmission tower, cement plant and power plant.

Local media has reported that Qualitech steel plant, built in 1998 and closed since 1999, will collapse with the help of explosives. October 6th 2006. Texas Dock & Rail, which acquired the Qualitech Seel after its financial collapse, has contracted Controlled Demolition Inc to knock the plant down.

Mr Tom Doud project manager for Controlled Demolition Inc said that it would take a week and a half to complete the collapse, but the actual event would take only seconds. He said "We'll sequentially remove rows of columns to get the building to lean the way we want and then go into a progressive collapse."

In 1998, Qualitech Steel Corp built a $125 million plant that processed scrap metal into high quality steel on the site. When it opened, it faced an international glut that knocked the price of steel lower than it cost Qualitech to make.