September, 09 2006
All 50 trapped in Jharkhand coal mine dead
It is reported that all the 50 miners trapped after an explosion in Coal India Limiteds subsidiary Bharat Coking Coal Limiteds Bhatdih coal mine in Dhanbad district of Jharkhands have died. The bodies of 45 miners were taken out earlier while the 5 remaining ones were later found by rescuers. As per reports 25 of the bodies have been handed over to the next of kin.
The miners were trapped inside Nagda Colliery of BCCL at Bhatdhi on September 6th after an explosion. Mr DK Basu director technical of BCCL said that the deaths occurred when the miners inhaled poisonous gas in the mine after the explosion.
Mr Shibu Soren union minister of coal has announced a compensation of Rs 3 lakh for each of the families of the dead workers and a job for their next of kin in addition to a departmental inquiry into the accident.
Mr Partho S Bhattacharya CMD of BCCL said BCCL has started distributing compensation and letters of employment to the next of kin of the dead miners. Extensive arrangements have been made for providing relief and other support to the affected families.
There is lot of anger among the people of the coal mine area. The labor unions allege that the coal mine was not safe and the administration was lacking as regards the precautionary steps in the mine.
TATA Steel's Kalinga project to restart soon
TATA Steel is expected to restart construction work at its proposed 6 million tonne steel project at Kalinga Nagar, as a government report on the progress of several proposed projects before the Investment Commission said that construction of the boundary wall at the project site that was stopped due to law and order problems would recommence soon.
Construction work at TATA Steel's project at Kalinga Nagar came to a halt in January after violent protests that left 13 tribals dead
As per the MoU signed on November 17th 2004, an estimated 2,400 acres of land were to be allotted to the TATA Steel and lease deed executed for an area of 1,971 acres. As per reports Jajpur district administration is considering handing over 500 acres of land, initially identified for Maharashtra Seamless to TATA Steel.
India set to become global auto hub in 10 years
Mr Santosh Mohan Deb Indian minister for heavy industries and public enterprises said that the annual revenue from the India's automobile sector could grow to $145 billion by the year 2016. The Indian automobile sector currently generates revenues of $34 billion a year.
Mr Deb while addressing the annual conference of the Society of Indian Automobile Manufacturers said "The rapidly growing domestic demand for vehicles is one of the biggest factors impacting the high growth rate in the industry and the contribution of the auto sector to India's gross domestic product is expected to increase to more than 10% by 2016 as compared with 3% to 4% currently.
Mr Deb said "We have decided that our dialogue with various segments of the auto industry should crystallize into the Automotive Mission Plan 2006-2016 to make India a global hub for automobiles and auto components.
HZL hikes zinc prices by Rs 11,600 per tonne
Hindustan Zinc Limited has hiked prices of its high grade primary zinc products by Rs 11,600 a tonne to Rs 193,200, in line with firm global prices.
HZL had last increased zinc prices by Rs 3,900 a tonne on August 26th 2006.
Steel companies to bear channel cost for sales in rural areas
It is reported that some of the major Indian steel producers have agreed that they will make available steel items of common consumption in rural areas at prices on par with the metros. During a meeting held under the chairmanship of Mr RS Pandey secretary of steel, SAIL decided to make available items of common consumption in the rural areas through their dealer network at the same price as applicable at metros.
This would mean that the cost of transportation as well as channels margins will be absorbed by the producers.
This move has come as a response to the appeal made by Mr Ram Vilas Paswan steel minister to keep prices under check for the benefit of the common man.
PSL to supply $17 million spirally welded pipes to UAE
PSL Ltd has announced that it has secured an order worth Rs 80.77 crore ($17 million) to supply 48'' spirally welded pipes of 20.6 mm thickness for High Pressure Gas Pipeline Project in UAE.
Indias mineral production up by 3.53% YoY in April to June
Indian mineral sector has shown a growth of 3.53% during April to June 2006 as compared to that of the same period of previous year. The production in June 2006 was higher by 4.79% as compared to that of June 2005.
The total value of mineral production, excluding atomic & minor minerals, in India during June 2006 was Rs 6245 crore. Coal contributed to almost 40% at Rs 2520 crore, petroleum crude Rs 1575 crore, natural gas Rs 751 crore, iron ore Rs 742 crore, lignite Rs 189 crore and limestone Rs 166 crore. These six minerals together contributed about 95% of the total value of mineral production in June, 2006.
Production level of important minerals during June include 32.3 million tonnes, lignite 2.6 million tonnes, natural gas 259.8 million cubic meters, petroleum crude 2.8 million tonnes, bauxite 0.995 million tonnes, chromite 0.297 million tonnes, iron ore 13.2 million tonnes, manganese ore 0.155 million tonnes, zinc concentrate 0.083 million tonnes and limestone 15.4 million tonnes.
SCCL success story in fly ash management
Fly ash from the burning of coal poses a serious environmental hazard if left unused. Singareni Collieries Company Limited a joint undertaking of government of Andhra Pradesh and the government of India launched a mission in Prakasham Khani at Khamman District in 2002 along with the department of science & technology for the implementation of Fly Ash Utilization Mission.
Studies were made in the usage of fly ash as stowing material in underground mines instead of sand stowing and experiments carried out have given very encouraging results indicating that fly ash can be used safely as mine field material. Earlier, SCCL had taken the lead in use of fly ash in civil works where traditional clay bricks have been replaced with fly ash bricks in all construction works like drains, sanitation works, compound walls, dwellings, office buildings and public buildings. These bricks are also gradually replacing rubble stone, cement concrete solid and hollow blocks in construction industry.
POSCO & Dongbu deny merger speculation
South Korean steel majors POSCO and Dongbu Steel denied a report in an economic daily newspaper that the two steel makers were looking for a merger and acquisition deal.
Dongbu said that it neither made a proposal for POSCO to take it over or to allow it to merge with POCOS a CR making subsidiary of POSCO.
POSCO also denied the report in a filing with the Securities and Exchange Commission where it said that it has never received a merger or acquisition proposal from Dongbu Steel.
Analysts said that the report about an M&A deal between the two companies was based on a deteriorating bottom line of the CR making industry in South Korea giving rise to the need for industry wide restructuring. Dongbu recorded a 17.4 billion won deficit in the first half of this year, compared to 33.7 billion won in profits last year. Industry watchers say that the Dongbu Group is moving to restructure its core businesses with more emphasis on the information and financial sectors and a preparatory step would be to sell off Dongbu Steel.
Eramet blames speculators for nickel prices surge
French metals and mining company Eramet SA said that the recent record high nickel prices on the London Metal Exchange were driven by speculators and could return to lower levels at any time as the physical market reaches balance. Eramet said "This reflects strong speculation, while the physical market should be close to equilibrium in 2006, which could mean a return by nickel prices to lower levels at any time.
LME nickel is currently trading around $28,400 per ton. Extremely low nickel stocks and strong demand from the stainless sector have combined to push the market higher this year. At the same time, LME data have revealed that one player or a consortium of players holds a large net short position on the LME.
German steelworkers start warning strikes
About 800 German steel workers demanding a wage increase staged the first of a series of sector warning strikes today by gathering in front of ThyssenKrupp AG's plant in Duisburg. Such industrial action typically lasts between one and two hours and involves workers from a handful of company units.
A spokesman for IG Metall said that more warning strikes are planned to be launched daily until next Thursday when the trade union and employer's representatives will meet for another round of wage bargaining talks.
The warning strikes were held after the IG Metall union rejected the offer made by the employers to increase wages by 3% for a period of 19 months and to pay a one time sum of Euro 500 and the union said the period of validity is too long and 3% is too low.
German steelworkers are demanding a greater share of steelmakers' including ThyssenKrupp and Salzgitter AGs record profits last year. IG Metall is demanding an increase in salaries of 7% for 12 months for about 85,000 workers in North Rhine-Westphalia, Lower Saxony and Bremen.
UKs CAT rule in favor of LME for extending trading hours
The UKs Competition Appeals Tribunal has ruled against the Office of Fair Trading after the London Metal Exchange appealed a ban preventing it from extending its trading hours. CAT in its ruling said "We have come to the conclusion that the OFTs investigative process was superficial and flawed and the IMD consequently ill founded."
LME had originally wanted to extend the opening hours of its screen platform from March 1st 2006 but the OFT issued an Interim Measures Directive to prevent this happening after a complaint by Spectron Group plc which operates a rival trading platform.
Mr Simon Heale CEO of LME said "The CATs judgment says it all. To describe the OFT`s investigative process as superficial and flawed is damning. I only hope that the OFT learns from this criticism so that other companies can avoid the damaging and completely unnecessary experience that we have gone through."
ThyssenKrupps Duisburg and Krefeld plants to restart in 2007
ThyssenKrupp AG announced that its 2 steel processing plants at Duisburg and Krefeld in Germany, which have been damaged in recent fires, will be back in operation at the earliest sometime in 2007.
According to a report in Financial Times Deutschland citing industry sources, Talanx AG's HDI, Allianz AG, Zurich Financial, and XL have paid out Euro 325 million in damage claims related to the fires.
The fires broke out in September 2005 in the steel coating facility in Duisburg and in June 2006 in the Nirosta unit's steel production facility.
Mitsui to take 25% stake in Chinese Erdos
Japanese trading house Mitsui & Co plans to acquire a 25% stake in Chinese ferroalloys and coal producer Erdos Electric Power Metallurgy. Mitsui plans to acquire a stake in Erdos EPM through third party financing, which will cost Yen 18 billion ($155 million). Through capital ties, the two companies hope to build a stronger partnership in ferroalloy and coal operations.
Erdos EPM and its affiliated companies produce silico manganese and ferrosilicon, with output capacities of 150,000 tonnes per year and 600,000 tonnes per year respectively.
Erdos EPM, based in Inner Mongolia of China, is a subsidiary of Erdos Cashmere Products which operates textile and metal resources businesses in China.
Mitsui and Erdos have been partners in the ferroalloy business since 2004 and together with JFE Steel set up a 75,000 tonnes silicomanganese JV Inner Mongolia Erdos EJM Manganese Alloys.
Techint acquires South African Pyromet
Techint Technologies has acquired the Johannesburg based Pyromet Technologies (Pty) Ltd and is now in the position to offer the complete range of high technology melting and smelting electric arc furnaces. Techint will boost Pyromet capabilities through its global marketing and sales organization as well as through Techints production facilities in China.
The new Company will keep Pyromet existing structure operating from Johannesburg at the former premises where 150 people are employed; Chairman of the new board of directors will be Mr Raimondo di Carpegna Varini and deputy chairman Mr David Pheiffer founder and reference shareholder of former Pyromet Technologies.
South African Pyromet, leader in the design and supply of submerged arc furnaces, is involved in major ferroalloys projects in a fast growing market driven by the booming steel industry. Its technology, in particular its proprietary electrode system, is considered to be at the highest level in terms of quality and reliability.
The Techint Group comprises more than 100 companies with about 50,000 employees operating worldwide with annual turnover exceeding $16 billion dollars. Techint, through its Division Techint Technologies, is active in the field of Iron & Steel plants supplying mainly electric arc, reheating and heat treating furnaces, processing lines, roll grinders and bulk material handling systems.
CSC with 7 auto makers forms R&D alliance for AHSS
Taiwans biggest steelmaker China Steel Corp and seven local companies jointly set up a R&D alliance for advanced high strength steel & forming technology for automobiles. The R&D alliance aims to develop the latest high strength steel materials and build up a collaborative design mechanism with local automakers and tier one parts suppliers.
The 7 partners in the new alliance include the automaker China Motor Corp which locally produces Mitsubishi and Chrysler cars, auto parts supplier Kian Shen Metal Works Co Ltd, Mao Hsiung Metal Co Ltd, China Ogihara Corp, Jui Li Enterprise Co Ltd, Chun Yuan Steel Industry Co Ltd and automaker Yulon-Nissan Motor Co.
Mr Chen Yu-song VP technical of CSC said that CSC will lead the new R&D alliance to develop AHSS materials harder than 590 Mpa and related forming and welding techniques through vertical integration and collaborative development. The alliance will also utilize the R&D capacities and resources at academic and research institutes such as the National Taiwan University and MIRDC.
It is the 4th automotive related R&D alliance that CSC has established with local industry partners at the Metal Industries Research & Development Centre in central Taiwan. CSC's three previous R&D alliances involve automotive fasteners, hydro forming technology for automotive pipe products and hand tools.
AHSS is stronger than typical steel sheet metal currently adopted for auto bodies, so can cut a cars net weight by at least 20%. AHSS is becoming increasingly popular in Europe and the US.
Remondis, Cronimet & Alfa Acciai to acquire TSR Group
A consortium of mid sized family owned companies with 60% stake of Remondis AG, 20% Cronimet and 20% Alfa Acciai plans to acquire German ferrous and non ferrous scrap recycler TSR Group. The acquisition, announced last month, must be approved by the European Unions Federal Cartel Office.
TSR Group was established in 1996 as a result of a merger between Thyssen Sonnenberg GmbH and the iron and metal scrap division belonging to Klkner & Co. TSR with more than 1,500 people and 80 branches processes 8 million tonne to 9 million tonne of scrap every year and is is expected to have sales of around $2 billion for this year.
Mr Ludger Rethmann board spokesman at Remondis said "The purchase of the TSR Group is a further consistent move in the direction of strategically rounding off our company group within the field of water and environmental services."
Remondis is a privately owned company operating in the field of water and environmental services. The Cronimet Group is active in the area of marketing, production and recycling of alloy raw materials for the stainless steel manufacturing industry with business of more than 1 million tonne per year. Italian Alfa Acciai is a steel maker with annual steel production of 1.8 million tons.
Norsk Hydro seals $462 million pipe order with Mitsui
Norwegian energy and aluminium group Norsk Hydro has awarded a 4 year contract worth $462.3 million to Mitsui for delivery of casing and production pipes and services for its oil and gas drilling operations. The contract has options for extension of up to 4 more years. Mitsui will deliver casing and production pipes from Japan and UK and supply related storage, preparation and machine shop services.
Norway's second biggest oil and gas producer after Statoil, Norsk Hydro said that the deal was important to secure pipe and casings for its drilling activities in a market where demand for such equipment is high. It said "The framework contract only covers Hydro's activities on the Norwegian continental shelf, but it includes an option for enlargement to also include the company's international activities."
ABB to increase LKABs Kiruna iron ore output by 25%
ABB announced that it has won a $20 million contract from mining and minerals group LKAB to raise productivity of an iron ore mine at Kiruna in Sweden. The modernization will begin early next year and continue through 2008.
ABB will supply hoists, used to haul ore to the surface, as well as hoist control systems and drives to help increase production at Kiruna by 25% and support extending the depth of the mine by about a third to 1,365 meters below the surface. ABB will supply ACS6000SD variable speed drives, 5600kW synchronous machines and AC800M control systems to four existing underground hoists. In addition, ABB will provide a new turnkey mine hoist with complete mechanics and brake system at surface level.
Stalexport to sell steel business in October
As per reports Polish Stalexport is going to look for an investor for its steel unit after it has recently found an investor for its motorway business and that the terms of sale and likely price will be known when MoU will be ready in October 2006. The investor for the steel unit will acquire the logo and assets of the steel distributor. KPMG consulting company will then send invitations to potential investors.
It seems that almost 270 persons work in the steel business division of Stalexport in Poland and this news has generated serious concerns. Ms Malgorzata Szalas chairman of the council of employees after a meeting with Stalexport management said The management assured us that it wont be the price which is decisive but the long term strategy for the company.
Caparo upgrading Scunthorpe bar mill
UKs largest producer of merchant bar products Caparo Group has assigned the upgrade project involving mill modifications and new equipments for its bar mill at Scunthorpe to VAI Pomini to improve the mills product flexibility and range. The completion is scheduled for the third quarter of 2007.
The scope of work includes replacement of roughing mills 5 mill stands, install a joker stand, a pendulum shear and supply standby equipment.
LKABs revenue up by 7% in h1
Swedens Luossovaara-Kiirunavaara AB released their first half figures and indicated a steady performance for the first half of this 2006. Operating income for the period rose by 1% from Skr3.02 billion in the same period last year to Skr3.05 billion. Sales revenue increased by 7% to Skr7.49 billion.
Iron ore production for the period totaled 11.5 million tons staying at the same level as last year.
Higher energy costs as well as raw materials and the outsourcing of mine services counteracted the companys operating income.
Hyundai Steel starts captive port operation at Dangjin
South Korea's 2nd largest steelmaker Hyundai Steel Co began operation of a private port in the western coastal city of Dangjin to ship products to and from its factory.
Hyundai Steel has invested 63.4 billion won ($66 million) in the construction of the 280 meter long port. It plans to expand the port's to 1,240 meters by the end of 2008.
Aviva seals deeds for Iluka's Eneabba coal deposit
Perth based energy company Aviva Corporation Ltd has signed the final deeds with the owner of the existing tenements Iluka Group of Companies and private owner of the coal rights Sword Nominees Pty Ltd for the Central West Coal deposit near Eneabba. The deeds cover the option to purchase the coal rights and the ongoing mining access rights to freehold land and mining tenements both for the exploration and future development and operation of the project.
The consideration for Aviva's eight year option agreement with Sword includes an annual option payment and once the option is exercised, Sword will earn a 6% royalty. The agreement with Iluka covers the co existence of farming, mineral sands and coal activities in the Project area. Iluka may elect to participate in joint venture with Aviva to acquire a 49% interest in the project if the project is planned to produce in excess of 1.5 million tonnes per annum for use by a base load power station or 1 million tonnes per annum for any industrial use.
Mr Lindsay Reed CEO of Aviva in a statement said that the signing of these agreements cemented the company's position and plans to develop base load power generation in the Midwest.
With the agreement of Iluka and Sword, Aviva has been conducting exploration and development activities on the project for 2 years and recently released the results of a positive pre feasibility study for the Central West Project. Aviva has already commenced a drilling and combustion test work program as a key component of a Definitive Feasibility Study and the platform for introducing qualified partners to the Project.
Metal Management to buy back 10% of common stock
Scrap metal recycler Metal Management Inc. said Friday it plans to buy back up to 2.7 million shares of its common stock. The amount earmarked for repurchase represents about 10% of its shares outstanding.
Metal Management said it would finance the stock purchase through an existing credit agreement, which allows it to spend up to $50 million to buy back stock in any 12 month period and $100 million over the life of the credit agreement.
Charter Steels melt shop at Cleveland stabilizes
Charter Steel's new electric melt shop in Cleveland for specialty steels is reported to have achieved full production after trial heats in mid June. Announced in 2004 as a $90 million investment, the new melt shop establishes the one time US Steel, later American Steel & Wire and then Birmingham Steel operation as a complete mini mill for the first time.
The new melt shop features a 75 ton electric furnace, ladle furnace, single tank vacuum degasser and a 4 strand continuous caster producing billets of up to 200 mm sizes in various grades including carbon and alloy steels for cold heading, cold forging, specialty spring, bearing, high carbon, and free machining steels for automotive, aerospace, agricultural, and construction applications.
Charter Steel is a division of Charter Manufacturing Co and supplies hot-rolled and processed steel rod, coiled bar, and wire. It has a mini mill at Saukville in WI, the newly expanded operation in Cleveland and wire processing facilities at Rising Sun in Ohio.
Murchison set to export iron ore to China within months
Western Australian miner Murchison Metals said that it will be exporting iron ore to China within months as its Jack Hills Stage 1 Project has been approved by the WA environment minister Mr Mark McGowan. The company expects to begin work at the site in the coming weeks, and export its first shipment by the end of October.
Mr Trevor Matthews GM said that the facilities are in place to commence work immediately. He said "We actually have all the equipment mobilized on site to start mine development work and also some remaining sort of road works into the mine site itself, so virtually within the next couple of days."
Coal Corp gets approval for Cavpa coalmine in Colombia
Canadian Coalcorp Mining Inc announced that its Caypa mine in Colombia has received approval of its large scale mining permit, enabling production to exceed 800,000 tonnes per year.
Coalcorp is a coal mining, exploration and development company with interests in the La Francia and La Caypa coal mines and related infrastructure projects and a number of coal exploration properties, all located in Colombia.
Russia to investigate safety of coal and gold mines
Russia's natural resources ministry will hold an urgent inspection of a number of coal and gold mining enterprises in three Russian regions.
This move is prompted by the tragic accident on Thursday at a gold mine in Chita region where at least 11 miners were killed.
Alaskan Usibelli ships thermal coal to Chile
Usibelli Coal Mine Inc has recently shipped 73,000 metric tons of coal from Seward to supply a power plant at Mejillones in Chile. The power plant has an option for a second shipment of the same size during the last quarter of this year. About 60% of Usibelli's 1.5 million tons in annual coal production is used in Alaska and the rest is exported.
Since 1985, the company has exported more than 13 million tons of coal, primarily to South Korea, the company said. It has sent 250,000 metric tons in test shipments to three Chilean power plants from 2004 to date.
Mr Joe Usibelli president said "Chile's demand for coal is expected to increase significantly in the near future and we look forward to being a long-term reliable fuel supplier to meet their growing energy needs."
Mechel promotes Mr Trigubko as senior VP
Mechel OAO announced the promotion of Mr Victor A Trigubko to the position of senior VP for government relations. Mr Trigubko has been in charge of Mechel's government relations efforts since 2005.
Mr Trigubko working as Mechel's representative in Central and Eastern Europe achieved significant improvement and strengthening of Mechel's cooperation with European governmental partners and has contributed to the acquisition of new assets.
Mr Alexey Ivanushkin COO of Mechel said "We are proud that such a respected and experienced professional will continue his important work for Mechel at a higher level. The appointment of Victor Trigubko to the position of senior vice president reflects the importance of strong relations with government agencies for our Company.
Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware.
