BS has reported that Essar group's overseas investment arm Essar Global had been short listed for acquiring the Egyptian government's 83% stake in Suez Steel. The announcement of the successful bidder would take a fortnight.

Giza based investment bank HC Securities is handling the sale. The financial details of the bid are not known. It is reported that the successful bidder would also have to acquire the remaining 17% stake from non government shareholders at the same price.

Other bidders for the plant include the Al-Tuwairqi group, Al-Rajhi Steel, Egyptian National and a consortium of investors.

Suez Steel is situated 5 kilometers south of the Suez near the Red Sea coast and has a capacity of 0.6 million tonnes of steelmaking and billet rolling.

As per reports TATA Steel Ltd has managed to rope in more bankers to raise $750 million loan to finance acquisitions and build new plants.

The reports citing a banker involved in deal said that Calyon will join ABN Amro Holding NV, Citigroup Inc and Standard Chartered Plc in marketing the loan to other banks, according to the banker.

Bank of Tokyo Mitsubishi UFJ Ltd, Malayan Banking Bhd (Maybank), Mizuho Corporate Bank Ltd and Sumitomo Mitsui Banking Corp joined as arrangers of the loan which has an all in pricing of 54 basis points, including fees and interest.

The loan is rated BBB by Standard & Poor's Rating Services, its second lowest investment grade rank. TATA Steel has a Baa2 rating from Moody's Investors Service, also the second lowest investment grade.

Growth of 9% in the 6 infrastructure sectors in July 2006 as compared to 2.3% in July 2005 has lifted the overall growth rate during the April to July 2006 period to 7% as against 6.1% in April to July 2005.

Except steel, all infrastructure sectors registered higher growth. Crude oil output grew by 4.1% in July 2006 as compared to decline of 3.9% in July 2005 and refining throughput rose by 12.6% in July 2006 as against 3.6% in July 2005.

Mr B Muthuraman MD of TATA Steel during a CNBC-TV18 interview said that Indian steel prices move up or down along with the international prices but it is not the only thing that impacts the fortune of good steel companies.

Mr Muthuraman said that there has been a drop in the international prices and therefore TATA Steel has also decreased the prices and when international prices go up, we will also increase our prices adding that prices all over the world will move up or down in almost a similar manner.

Elecon Engineering Co has received an order of Rs 530 million from JSW Steel for design, engineering, manufacturing, testing, supplying, erection and commissioning of various equipments.

Elecon Engineering was established in 1951 and is located in Vallabh Vidyanagar in Gujarat. Elecon manufactures material handling equipment, helical gears, spiral bevel helical gears, Elecon ET Series modular gear units, Elecon EP & Epex Series, Planetary gears, Worm gears, Couplings, Geared Motors as well as custom engineered power transmission products for specialized precision applications.

It is reported that steel wire maker Ramsarup Industries has lined up a CAPEX of Rs 775 crore over the next four years out of which Rs 150 crore is earmarked for acquisitions in India and abroad. Ramsarup Group is aiming to produce 0.6 million tonnes of black and coated wires and 50,000 tonne of downstream wire products by 2010.

Mr Ashish Jhunjhunwala CMD of Ramsarup Group said that The company expects to achieve a turnover of Rs 5,000 crore and net profit of Rs 500 crore by 2010,

As per reports, it has finalized 50 acres of land for its new wire plant in Durgapur and is eyeing another steel project in Durgapur for wires and downstream products.

Coal India Limiteds subsidiary Western Coalfields Limited has bagged the prestigious "Greentech Environment Excellence Award" for this year for outstanding achievement in environment management. The coveted silver trophy has been bestowed on WCL's ISO 14001 accredited Padmapur opencast mine in Chandrapur district in Maharashtra.

The award was presented by Goa Governor S C Jamir during the 7th annual International Conference on Environment Management of Greentech Foundation at Goa recently, a WCL release said on Tuesday.

WCL's excellent track record in integrating environmental protection measures in its developmental program has been recognized by various national organizations earlier also. WCL has planted five lakh trees every year and was regularly monitoring environment parameters.

Steel Authority of India Ltd has announced that Mr GC Daga director finance has resigned from the company's board with effect from September 2 following his appointment as director marketing of Indian Oil Corporation.

Ministry of mines unit Mineral Exploration Corporation Limited has carried out 473 meters of developmental mining and 13,300 meters drilling following its regular exploration activities in July 2006.

MECL has achieved 2,285 meters of mining during the period April to July 2006 against a target of 2,280 meters and 54,383 meters drilling against a target of 55,000 meter

US copper giant, Phelps Dodge Corp has dropped its $18.2 billion friendly takeover of Canadian nickel miner Inco Ltd, whose shareholders support a competing cash bid from CVRD. It said in a statement that it may get $475 million as compensation from Inco.

Mr J Steven Whisler CEO of Phelps Dodge said his plan to acquire Inco and create North America's largest mining company became too costly after CVRD made its bid. He said The synergies available in a two way combination with Inco were much smaller than those available in a three way combination.''

CVRD has offered C$86 per share to acquire Inco whereas Phelps Dodge had offered cash and stock valued at about C$90.

Now CVRD is likely to emerge as a winner in a 10 month battle for Canadian nickel deposits that began with Inco's failed bid for Falconbridge Ltd and later drew offers from Xstrata Plc and Teck Cominco Ltd.

Ms Hong Jin-sook spokeswoman of POSCO told the JoongAng Daily that the Japanese media report about an immediate alliance between POSCO and Nippon Steel was premature. However she added that "It is true that the two companies have been discussing cooperation in materials, accounting and marketing activities since 2000."

Japan's Nihon Keizai newspaper had reported that POSCO and Nippon Steel are discussing a strategic alliance and would each invest in each other's shares to fend off potential unwanted suitors citing unidentified corporate executives. The report added that they will also supply slabs to each other.

South Korean shipbuilders and Japanese steelmakers are reported to have major differences in settling the prices for ship building quality plates. Japanese steelmakers are pushing for an increase of 17% to achieve $680 per ton price citing rising input costs including iron ore. ON the other hand Korean shipbuilders are demanding a price cut from the current $580 to $480 per ton for the six months from October 2006.

An official from the Korea Shipbuilders' Association said "The talks on price settlement could go on until early October. Steel plate supply is falling short of the soaring demand for ships."

A spokesman of Samsung Heavy Industries Co said "Prolonged price negotiations could delay the initial shipment of steel plates for the fourth quarter. But we have enough inventories to sustain production for now."

Nearly 30% of the steel plates used by the world's three largest shipyards depend on imports from Japan. Hyundai Heavy, Samsung Heavy and Daewoo Shipbuilding & Marine Engineering Co estimate Japanese imports of 1 million tons, 500,000 tons and 150,000 tons, respectively this year. Another 10% supplies come from China, which has increased supplies 2.5 fold from a year ago to 939,000 tons in the first half of this year.

Domestic suppliers of SBQ plates POSCO, Dongkuk and Hyundai Steel have also unveiled plans to increase their capacity of SBQ plates by 1.1 million tons, 1.5 million and 2 million tonnes respectively by 2009 to take South Koreas SBQ production from current 6 million tons to 10.6 million tons.

Numis Securities said in a research note said that iron ore prices are likely to be steady for April 2007 contracts after a 19% rise this year. It said "Our current base case is a rollover of prices...large moves in recent negotiations will not be repeated."

Numis said that "Despite rising domestic iron ore production, China's iron ore import data is still supportive. However this is a marked slowdown from the 2005 versus 2004 import growth close to 30 %. A further large rise in iron ore prices is therefore unlikely in our view."

Negotiations for April 2007 agreements are due to start later this year and Numis expects iron ore prices to be fixed in a range between plus 10% and minus 10%.

Global mining giants are starting to shift focus to India as an emerging market place for minerals taking some shine of China. India could be more than just a destination for BHPBs products as the Indian mining sector is opening up throwing up many opportunities.

Mr Chip Goodyear CEO of BHPB noted after reporting a record breaking $US10.5 billion profit last month that the Indian market is growing faster than that of China. He said "We haven't talked about India in the past, but it is a growing percentage of our sales. It's growing faster than China, actually, but it's coming off a much lower base. Economic growth has been progressing solidly in India and it is continuing to outperform the expectations we see."

BHPB sold $1.24 billion of products into the Indian market last year, primarily coking coal and copper concentrate, which was nearly triple the $425 million it sold the previous year but only about one sixth the amount it sells to China.

Mr Vladimir Putin president of Russia while speaking at a press conference in Cape Town announced that a Russian company plans to spend $1 billion on a manganese project in South Africa without identifying the company. Mr Putin, accompanied with about 100 Russian businessmen, began a 2 day visit to South Africa on Tuesday aiming to build trade and economic ties with Africa's largest economy.

Mr Putin said One of our companies is planning to invest $1 billion in South Africa. That project will have to do with the production of manganese. Another of our companies is interested in helping with the development your power generation, along with the construction of an aluminum smelter.

Mr Viktor Vekselberg's ZAO Renova had announced in June 2006 that it was studying about digging a manganese mine in South Africa's Kalahari Desert.

The US International Trade Commission voted to conduct full 5 year sunset reviews concerning the countervailing duty order on imports of oil country tubular goods from Italy and the antidumping duty orders on imports of those products from Argentina, Italy, Japan, Korea and Mexico.

Now the US ITC will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury within a reasonably foreseeable time.

The Commission's notice of institution in 5 year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information.

It is reported that the Chinese coal industry which suffers from frequent accidents plans to close a further 4,861 small and unsafe coal mines in the next two years as part of a drive to improve work safety.

As per State Administration of Coal Mine Safety a total of 2,652 mines will be closed during 2006 and 2,209 are scheduled to cease production in 2007. Around 5000 mines were closed in 2005.

Mr Zhao Tiechui a director at State Administration of Coal Mine Safety said "With stricter supervision, we are starting to see safer and steadier production from coal mines. We still need to identify new trends and problems to tackle the issue effectively." Mr Zhao added that local governments are also seeking to boost safety by improving the ventilation in mines, thus making the extraction of coal gases more efficient.

After closing these mines China will still have around 17,000 producing coal mines in 2008.

Scrap metal recycler and lead products fabricator Metalico Inc announced that its subsidiary Metalico Niles Inc has terminated an agreement to purchase substantially all of the assets, other than real property interests, of Niles Iron & Metal Company Inc.

Under the terms of the agreement, either party had the right to terminate the agreement in the event that the closing of the transaction did not occur by August 31st 2006 and the closing did not occur on or prior to August 31st 2006.

Metalico Inc is a holding company with operations in ferrous & non ferrous scrap metal recycling and fabrication of lead based products. Metalico operates 6 recycling facilities and 6 lead fabrication plants in 6 states in US.

The US International Trade Commission voted to conduct full 5 year sunset reviews concerning the antidumping duty orders on imports of seamless carbon and alloy steel standard, line, and pressure pipe from Argentina, Brazil, and Germany.

Now the Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury within a reasonably foreseeable time.

The Commission's notice of institution in 5 year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information.

According to a release from Ukraines Mission to European Communities, the consultations between the representatives of the EC and Ukraines ministries of economy and industrial policy on the implementation of the agreement on trade in certain steel products in 2006 and drafting new arrangements for the next period will take place on September 7th to 8th in Kyiv.

The agenda is likely to cover the issue of increasing of quotas for Ukrainian supplies of hot roll steel, flat roll steel, beams etc to the EU due to the rising demand in the EU for Ukrainian steel products, exemption of some steel semi products from quota restrictions, the mechanisms of filling the quotas in 2007 in view of Romania and Bulgaria joining the EU and need for Ukrainian producers to preserve their positions on the enlarged EU markets.

It is reported that Toronto based Blue Pearl Mining Ltd has agreed to buy Colorado based Thompson Creek Metals Co for $700 millions. Thompson Creek will get $575 million initially and $125 million more depending on future molybdenum prices. The acquisition will be funded with a $450 million loan from UBS Investment Bank and the issuance of new shares.

Blue Pearl will gain access to the Thompson Creek mine in Idaho and a 75% stake in the Endako mine in British Columbia that will produce 26 million pounds of the metal this year. Blue Pearl said that Thompson Creek will produce 148 million pounds the 10 year life of the mine and the Endako mine will produce 66 million pounds over seven years.

Blue Pearl said the deal will create the world's fifth largest producer of molybdenum. Before acquiring Thompson Creek's producing mines, Blue Pearl wasn't expected to start output until 2008.

Mr Ian McDonald chairman and CEO of Blue Pearl in an interview said This was an opportunity to spend a modest amount of money for long life reserves. It's a transforming deal as we had no production before.''

Vietnams ministry of planning and investment has proposed raising the export tax on coal in order to limit coal exports. As per reports the ministry thinks that coal should be kept in reserve to run thermal power plants which will become operational in the near future.

Vietnams ministry of natural resources and the environment has also urged a limitation on coal exports suggesting that coal be primarily retained for domestic consumption. The ministry has forecast an increased demand for coal, while the supply is short. It said that Vietnam should export only enough coal to earn money to import machinery.

Vietnam has excavated 24.5 million tonnes of coal during January to August 2006 up by of 20.7% YoY and exported 17.3 million tonnes of coal up by 64.7% YoY earning $541mil.

The program on export for 2006-2010, approved by the Prime Minister, aims for gradual reduction in coal export. As per plan coal exports will be kept at 11 million tonnes in 2006-2007, decreased to 10 million tonnes in 2008, to 9 million tonnes in 2009 and 8 million tonnes in 2010.

Aurox Resources Limited announced that it had entered an agreement with Chengde Iron & Steel Group Co Limited and China Metallurgical Group Corporation for a JV in relation to the Balla Balla Vanadium and Iron Ore Projects in Western Australia. The agreement also details a proposed share placement, convertible note terms and product off take arrangements. Aurox said the parties intend to negotiate formal agreements for execution by the end of September.

Chengde and CMGC would make an initial farm-in cash payment to Aurox of $5 million to earn 10% equity in the Balla Balla Vanadium Project and 20% equity in the Balla Balla Iron Ore project. Under this agreement, Chengde and CMGC would farm into the Balla Balla Vanadium and Iron Ore Projects via cash payments of $20 million following completion pursuant to the Balla Balla Option Agreement. Chengde and CMGC would also provide funding of $33.6 million by way of a convertible note and a share placement. The deal also provides for Chengde and CMGC to purchase by way of proposed off take arrangements 70% of the Balla Balla Ferro Vanadium production and a minimum of 2 million tonnes per annum of titanomagnetite iron ore concentrate for the life of the Vanadium and Iron Ore Projects respectively.

Aurox entered into the Balla Balla Option Agreement in April 2005, where it gained the right to undertake a bankable feasibility study for the mining and production of vanadium-pentoxide and ferrovanadium. Under the terms of the Balla Balla Option Agreement, Aurox said it may acquire the project from the vendors for $15 million to acquire a 100% equity interest, subject to royalties, in the project and effect transfer of the tenements the subject of the option agreement following completion of the study.

World Banks private sector arm International Finance Corporation has bought a 5% stake in Rio Tinto's Simandou iron ore project in Guinea to work with the company on exploring the project's feasibility and developing it in an environmentally and socially sustainable way. IFC also has the right to participate in four exploration license applications made by Rio Tinto. IFC bought the stake in Simfer S.A., a local subsidiary of Rio Tinto, on August 9.

Mr Rashad Kaldany director of IFC's Oil, Gas, Mining, and Chemicals Department said "Rio Tinto is a partner that is strongly committed to the sustainable implementation of this project. We expect that this project will contribute significantly to Guinea's economic development through job creation, infrastructure development, and diversification of the mining sector."

The government of Guinea granted the project's mining concession, located in the Simandou mountain range in eastern Guinea, to Rio Tinto in March this year. Since then, Rio Tinto has advanced its exploration efforts and accelerated its studies of the various options for developing the iron ore resources within the concession area. IFC is entering this project at an early stage to work with the company on developing the mine to the highest international standards.

IFC and the World Bank will assist Rio Tinto and the Guinean government in evaluating the most effective railway and port options for exporting the iron ore.

Investika announced that its Berong nickel project JV has been granted all the permits necessary for the initial trial bulk metallurgical sample for its Berong nickel project on Palawan Island in Philippines.

The permits enable the venture to continue project development and ship out a trial bulk metallurgical sample of 30,000 dry metric tons of ore grading around 1.7% nickel assuming 10% dilution. The trial shipment is expected to be undertaken in late September to early October 2006 using local contractors, with commercial operations expected to commence in November to December 2006.

Investika has a direct 18.7% interest in the venture and an interest through its investment in Toledo Mining Corporation. It has set an export target of 80,000 to 90,000 dry metric tons of ore has been set for 2006, 620,000 dry metric tons for 2007 and 1 million dry metric tons for 2008 and beyond.

Russian Raspadskaya coal mines shareholders have elected a new board of 7 directors at a meeting on September 4th 2006.

The new board includes Mr Alexander Abramov, a member of Evraz Group's board of directors, Mr Alexander Vagin chairman of Raspadskaya's board, Mr Alexander Frolov chairman of Evraz Group's board of directors, Mr Gennady Kozovoi GD of Raspadskaya Coal Company, Ms Ilya Lifshits a lawyer and certified auditor, Mr Geoffrey Townsend chairman of the audit committee at Pipe Metallurgical Company TMK and Mr Christian Schaffalitzky MD & CEO of Eurasia Mining plc.

Raspadskaya is part owned by Evraz Group.

Wormleysburg based industrial services and products provider Harsco Corp has been awarded 3 multi year contracts worth $100 million for providing a range of services from Harscos MultiServ division at steel mills in Brazil and Argentina.

Mr Ken Julian Harsco said that MultiServ has 2 contracts in Brazil. The first is an expansion of its services at Arcelors Belgo Piracicaba plant under which MultiServ will manage and handle the mills incoming scrap under the 5 year contract. MultiServ will also begin hauling services at a second Arcelor plant in Brazil. MultiServ will supply and operate transporters carrying molten iron between furnaces at Belgo Mineira Juiz de Fora mill under the new 3 year contract.

The award includes a 10 year contract with Argentinian steel makers Acindar Industria Argentina de Aceros SA. MultiServ will operate onsite scrap management services for Acindars Villa Consitucian plant in Santa Fe province.

Ukrainian Zaporizhiya Ferroalloy Works has produced 339,200 tonnes of ferro alloys during January to August 2006 down by 2% YoY. Its production of silicomanganese increased by 6.5% YoY to 242,600 tonnes but production of ferrosilicon and ferromanganese reduced by 32.3% YoY to 37,100 tonnes and by 11.9% YoY to 56,100 tonnes respectively.

ZZF produced 41,500 tonnes of ferroalloys in August 2006 including 29,800 tonnes of silicomanganese, 6,700 tonnes of ferromanganese and 4,000 tonnes of ferrosilicon.

ZZF had produced 513,000 tonnes of ferroalloys in 2005.

Privatbank controls ZZF as well as Ukraine's Stakhanov ferroalloy plant and manganese concentrate producers Marganetsky GOK and Ordzhonikidze GOK.

Interfax has reported that Chinas 4th largest steelmaker Wuhan Iron and Steel Group Co Ltd plans to list its Jiangbei subsidiary on an international stock exchange in three to five years. Mr Bai Fang head of the WISCO's communication department said that the company is considering Hong Kong or a US stock market for Jiangbei to help with future development.

He said that since foreign investment funds are forecasting a profitable future for downstream steel processors in China in 2008 because of the Olympics in Beijing, Jiangbei has the ability to become a good choice for investors. He added that the listing, especially if it is in the United States, would help WISCO open the North America market.

Jiangbei is located in the Yangluo Economic Development Zone in Wuhan. WISCO moved nine of its old mills and relevant plants to the zone and is building new lines including a cold rolling mill. WISCO plans to develop Jiangbei as a steel production base by 2010.

Natural Resource Partners LP announced that it has acquired another coal preparation plant and coal handling facility under its MoU with Sedgman USA, LLC for approximately $7.7 million, of which $3 million was paid at closing

As with the first facility announced in August, Sedgman will operate the facilities under contract with the mining company, and NRP will receive a throughput fee for each ton of coal handled by the facilities based upon a percentage of the gross selling price with a designated minimum per ton. In addition to the minimum per ton, NRP will receive monthly recoupable minimums on the plants.

The Red Fox preparation plant and coal handling facility is located near Bishop in West Virginia. NRP anticipates that the plant, scheduled to be completed by mid October, will handle an estimated 20 million tons of coal reserves during its life. While the coal preparation plant is still under construction, coal is currently being handled through the coal handling and rail load out facility.

The coal being processed through this facility will be mined by Justice Energy Inc, a subsidiary of James C Justice Companies Inc.

International Coal Group Inc has appointed Mr Bradley W Harris as CFO & VP. CFO is a new position for International Coal Group.

Mr Harris was most recently CFO of GMH Communities Trust and has previously worked for Brandywine Realty Trust, Envirosource Inc. and Ernst & Young LLP.