Business Standard has reported that TATA Steel has decided to start construction of its steel mill at Kalinganagar in Orissa among its 3 Greenfield projects announced in Orissa, Jharkhand and Chhattisgarh.

Dr T Mukherjee deputy MD of Tata Steel told BS that the company has decided to take up the Kalinganagar project first and was close to placing orders of equipments for the Orissa project. He said that TATA Steel would place orders for 1 million tonne in the first phase which would cost around Rs 4,500 crore.

Dr Mukherjee also said that the mine in Orissa, which would be allotted to TATA Steel, had been prospected. TATA Steel would get the mine once it invested 20% to 25% of the entire project cost according to the MoU terms.

As per the earlier announcement from TATA Steel, the 6 million tonne Orissa plant was to be set up in 2 phases of 3 million tonne each. TATA Steel has also announced setting up of 5 million tonne plant at Chhattisgarh and 12 million tonne plant at Jharkhand.

It is reported that farmers from the state of Orissa have intensified their protest against the states industrial policy which they say has hurt their prospects and that the government is eyeing revenue at the cost of their livelihood. As per reports, Indian Farmers Association has handed over a 21 point charter of demands to the state government.

Mr Pradipto Kumar Roy the organizing secretary of the IFA said Our chief minister Mr Naveen Patnaik is more interested in industrialization and that is the reason he is seizing our lands. They will get more taxes and more investment, but what will a framer gain from it?

As per reports, the farmers unrest has gripped the state ever since the state government decided to hand over 4,000 acres of land to POSCO.

Indias union cabinet has approved the signing of the revised "Protocol on Shipping Services between India and Pakistan" as also the ratification of the protocol by the Central government.

The Revised Shipping Protocol between India and Pakistan will allow lifting of cargo between the two countries by third country vessels as well as lifting of third country cargo by Indian and Pakistani flag vessels from each others ports.

This is expected to enhance tonnage under both the flags and also result in competitive shipping rates.

India's top zinc producer Hindustan Zinc Ltd has raised zinc prices by 2.2% to Rs 212,300 per tonne on Saturday. Lead prices have been raised by 2% to Rs 81,500 a tonne.

The new prices come into effect immediately.

This is due to the surge in global prices of Zinc, which attained peak levels last week on LME.

The Shipping Corporation of India has posted a net profit of Rs 321.29 crore for July to September 2006-07 quarters up by 114.2% YoY as compared to Rs 149.95 crore during July to September 2005-06 quarter. The income includes profit on sale of ships amounting to Rs 40 crore.

SCIs income during the quarter totaled to Rs 1,129.94 crore as against Rs 767.81 crore during the same period in 2005-06. The bulk segment, which includes crude and product tankers, dry bulk carriers, gas carriers and phosphoric acid carriers, accounted for revenue of Rs 853.66 crore and the liner segment yielded revenue of Rs 209.14 crore.

It is reported that RBG Minerals Industries Ltd is proposing to set up a lead zinc beneficiation unit at Chappri in Rajasthan with a capacity of 2,000 tonnes per day and is awaiting environmental clearance. Work on the plant will commence by March 2007.

Paradip Port, which at present mainly handles coal and iron ore, is constructing new berths and terminals on a build, operate and transfer basis for increasing the iron ore & coal handling capacity and also handling fertilizers and crude on a large scale.

2 deep draught fully mechanized berths for iron ore are being developed on BOT basis, which will be operational in 3 years. After completion of these projects, the Ports iron ore handling capacity will increase to 16 million tonnes per annum from 10 million tonnes now.

It is also planning to add a new coal berth, on BOT basis, for importing coking coal to take care of surge in demand for coal from the steel plants coming up in the Kalinga area. This will increase the Ports importing capacity to 14 million tonnes from 3.8 million tonnes per annum.

The Port is also gearing up to handle 9 million tonnes of crude for Indian Oil Corporations Paradip refinery project. IOC has set up a single point mooring facility, 22 kilometer away from Paradip, with a capacity of 15 million tonnes per annum. Fertilizer imports would take place through a special fertilizer terminal to be constructed on BOT basis on the southern side of the Port. A new container terminal would also be built on the southern side to cater to the increasing movement of containerized cargo.

According to a release issued by the Visakhapatnam Port Trust, a record quantity of 11,064 tonnes of calcined petroleum coke in bulk was loaded on to MV Server at East Quay-7 berth of Visakhapatnam Port on October 23, surpassing the previous record quantity of 10,515 tonnes loaded on board MV Albert Oldendorff on January 10th 2006.

Mr AC Sharma IG of Varanasi Zone while speaking in a workshop on Problems of Brick-Kiln and Technological Development urged brick klin owners to adopt new technologies in brick industry to minimize coal wastage.

Mr Sharma also said that Since the brick kiln industry has a turnover of worth Rs 8000 crore per annum, there is a possibility of foreign direct investment in this sector in future and the brick kiln owners should develop a tendency to adopt new technologies to compete with the possibilities of FDI.

Prof BD Tripathi, a noted environmentalist and a faculty member of the Banaras Hindu University said there were several misconceptions that brick kilns were polluting environment by burning coals. Prof Tripathi clarified that sulfur dioxide, produced during burning of coals in brick kilns is defused by the self purifying capacity of nature. However, Prof Tripathi exhorted the brick kiln owners to use anti pollution equipment at their kilns to check the pollution level. He said consumption of coal declined considerably because use of chimneys based on Chinese technology. Prof Tripathi also urged the brick kiln owners to ensure the re use of land after being used for manufacturing bricks.

The spot price of hot rolled coil steel in the US is coming under pressure because of oversupply due to record inventory, reports of discounting by smaller mills and a market psychology that now favors steel buyers.

The US market is in a state of flux as per feedback from steel buyers, traders, service centers and producers. There is little buying because the prevailing sense is the price will decline further. Platts reported that the consensus is the market through November and December will be terribly weak, with maybe a slim chance that January improves. Most sources, however, don't see the market strengthening until late in the first quarter.

A key factor is a massive inventory overhang at the service center level. Imports at fairly high levels have also contributed to the oversupply situation in US.

Mr James P. Bouchard chairman and CEO of Illinois based Esmark, a downstream processor and service center that buys more than 750,000 short tons of flat rolled steel per year, described the current flat-rolled steel market in the United States as horrible. He told Platts "A sizable correction is likely by early next year, with prices declining perhaps as much as $100 per short ton."

The monthly survey of business conditions from the Metal Service Center Institute was released early in the week and it showed that in September, carbon flat product inventories reached an all time high of 10.2 million short tons, a 6% increase from 9.6 million short tons the prior month. The months' supply rose to 3.8 months from 3.1 months in August due mainly to a 2% decline in average daily shipments and three fewer shipping days in September. At the same time, the MSCI reported that carbon flat-rolled steel shipments slipped nearly 6%.

Confronted with weakening market conditions, major US mills have been busy curbing steel output. Crude steel production in the US was 1.91 million short ton for the week ending October 21 down by 3.5% WoW as compared to 1.98 million short ton produced a week earlier.

Chinese coke market has spotted shortened price change cycle, shifting from once half a year in 2005 to once in two months this year. The main reason is that market supply and demand has changed with production cutback from coke producers in view of coke, steel and coal glut plus governmental curbing policies. Market insiders predict that coke production would maintain steady growth and export price may dive in following months.

The coke price uptrend in domestic market can be dated back to May, which has pushed up the fob export price to over $170 per tonne in late July from $130 per tonne in the year start. However, the export price then dropped to $150 per tonne in following month for lack of sufficient demand from overseas market, while the domestic price remains flat despite shrinking transactions.

Mounting fresh capacity is believed to underlie the price slide. Shanxi, Hebei and Shandong, the major coke producing regions, have been expanding their coke output regardless of weakening sentiment. China's coke output advances by 21.2% YoY to 4.27 million tonnes in August, a MoM increase of 2.7%. And the daily coke production increases by 2.3% from Jul to 788,300 tons. The total coke production climbs 16.1% YoY to 17.7 million tonnes in the first eight months.

In the first eight months, 12 new coke ovens have started operation with a combined coke capacity of 5.75 million tonnes. The coke output is estimated to add by 20 million tonnes this year for the least.

The Customs statistics show that China's coke export has shown strong growth since second quarter. In particular, the export volume surged 104.08% from a year earlier to 1.64 million tonnes in Aug, accounting for 18% of China's total coke export of 9.16 million tonnes in first eight months.

The export price is likely to ease back to lower level in days to come as a result of declining steel output and price in the global market.

The high coke stockpiles at seaports would also weigh on export price downward in near future. Currently, Tianjin port is holding 2 million tonnes of coke inventory, compared with 1.3 million tonnes to 1.4 million tonnes recorded in the year start.

(Sourced from Mysteel.net)

It is reported that CVRD plans to sell 5 billion reais ($2.34 billion) of bonds in Brazil to refinance part of a bridge loan made to pay for Vale's $17.3 billion takeover of Inco Ltd. CVRD in a statement said that it expects the sale of the bonds to raise the average term to maturity of its debt.

Mr Fabio Barbosa CFO said Before it took out the two year Inco bridge loan, the average Vale debt obligation matured in about seven years.

The real denominated bonds won't be convertible into shares, the statement said, without providing details about planned maturity dates, interest payment or yield.

The bonds will help pay a bridge loan extended by 37 banks and arranged by UBS AG, Credit Suisse, Banco Santander Central Hispano and ABN Amro Bank NV.

This article is extracted from a speech by Mr Li Shijun deputy secretary general of China Iron & Steel Association.

I. Steel Consumption Forecast for China's Energy Industry during 2006-2010 - During 11th Five-Year period (2006-2010), China will invest 350 million Yuan in energy construction. Thus, the nation posts great demands for steel and steel products.

1. Steel Consumption in Coal Industry
Steel consumed in coal industry amounted to 8.7 million tons in 2005, including 7.2 million tons used to produce propping facilities for coal mining production and the rest used to produce relative mining equipments. The steel consumption is expected to add up to some 14.5 million tons by 2010, containing 11 million tons used to produce facilities for coal mining products and the rest use to produce relative mining equipments.
Along with technology improvements as well as mix adjustments of coal industry, increasing volume of large-scale coal production base and higher degree of mechanization, China's coal industry demands for more steel products, especially high-strength and high-performance medium plate. Besides, it also requires higher quality in terms of steel products' strength and abrasion resistance.

2. Steel Consumption in Petrochemical Industry
In 2005, about 4.05-4.15 million tons of steel products were applied to petroleum exploration, development, transportation, reserve and petrochemical industry. The industry is expected to consume 6-6.5 million tons of steel products by 2010.

A)Steel applied to production of oil well pipe

In (10,000 tons)
Note: Proportion refers to consumption volume of each variety against total oil well pipe consumption in China. In fact, the proportion of welded pipe has already reached some 40% in international market.

In 2005, China totally exported 606,300 tons of seamless oil well pipes, including 583,700 tons of casing pipe and 22,600 tons of drill pipe while imported 291,800 tons of seamless oil well pipe, including 192,800 tons of casing pipe, down 25.15% year on year. The imported pipe products mainly consist of high grade pipe steel, corrosion-resisting products and other steel products for special requirements.

At present, China's Tianjin Pipe Corp. is China's largest casing pipe maker and Baosteel is the largest oil pipe maker. China has not only rolled out K, N, C and P grades casing pipe according to API standards, but also developed a series of casing pipe with its own intellectual property rights.

B) Steel applied to production of pipeline steel
By 2010, about 3.5 million tons to 4 million tons of pipeline steel will be applied to production of various pipelines.

In 2005, about 1.6 million tons of pipeline steel was consumed, including 1.5 million tons of HRC and 100,000 tons of wide and heavy plate.

By now, Baosteel, Wuhan Steel, Anshan Steel, Wuyang Steel, Taiyuan Steel and Benxi Steel have had capability of producing X70-grade and the above pipeline steel.

The nation's imports had remained at some 20,000-30,000 tons per year before 2000. Anshan Steel and Wuyang Steel trial produce X80 HRC. Julong Steel Pipe Co., Ltd successfully rolls out submerged arc welded pipe (JCOE). Nanjing Steel also trial manufactures X80 pipeline steel trough its steckle mill.

Technology improvements in petroleum industry put forward higher requirements on pipeline steel. Demands for high-grade and high-performance pipeline increase.

3. Steel Consumption in Power Generation
In 2005, about 4.32 million tons of steel products were applied in power industry.

By 2010, about 650,000 tons of steel will be needed for thermal power, including about 300,000 steel pipes and 350,000 tons of medium plate.

Steel products applied in power generation mainly contain high pressure boiler pipe, main steam pipe, heat treatment reheating steam pipe, cool treatment reheating steam pipe, high pressure feeding water pipe and other pipes for conveying water, most of which are made from welded medium plate.

By now, China has been the largest hydropower country with quickest development in the world. China 's Yunnan Province , Guizhou Province and Sichuan Province are top three regions with abundant water resource in the nation. Hydropower generated in these three water-rich provinces accounts for 71% of the nation's total hydropower. During 11th Five-Year period, demands for hydropower will reach some 180 million kilowatt, accounting for some 25% of the nation's total power generation, up over 70 million kilowatt.

At present, there are 12 large-scale hydropower bases under construction in China. By 2010, about 80,000-100,000 tons of medium plate is needed for hydropower.

Chinas installed capacity of nuclear power reached some 7.84 million kilowatt in 2005 and will surge to hit some 40 million kilowatt by 2010, denoting that the nation is expected to establish three fresh 1-mln-kw nuclear power stations per year on average from 2006. By then, there will be about 30 sets of 1-mln-kw nuclear power stations in China. At present, 4 nuclear stations under construction in Yangjiang, Guangdong Province and Sanmen, Zhejiang Province totally demand for about 20,000 tons of medium plate and about 15,000-20,000 tons of steel pipes. By 2010, nuclear power is expected to consume 30,000-40,000 tons of steel per year.

It is also forecasted that the installed capacity of wind power will hit some 4 million kilowatt at the end of 11th Five-Year period, representing average fresh installed capacity of some 800,000 kilowatt per year. During the period, domestic market volume of wind power is likely to linger at 1.3-2.3 billion Yuan with demands for medium plate at some 350,000 tons. Wind power has need of steel products' high quality to avoid low temperature cracking.

II. Steel Consumption Forecast for Transportation Industry during 2006-2010 - Chinas transportation will continue to make great progress during 2006-2010.

According to a layout for medium- and long-term development of railway, China fresh and extended railway totals some 78,000 kilometers, presenting demands for railway steel products of some 9.5 million tons with average annual demands of over 600,000 tons. Besides, railway turnouts also need about 150,000 tons of rail steel per year.

Rail steel products applied to railway heavy repair and maintenance remain at some 800,000 tons per year during recent years and are expected to hit some 1 million tons at the end of 11th Five-Year period.

In 2005, about 4.17 million tons of steel products were applied to railway construction, which will need 5.49 million tons of steel products by 2010.

Chinas railway only accounts for 6% globally while it undertakes 24% transportation work in the world. The nation's loading and unloading of railway averages some 120,000 vehicles per day; however, applications for lorry have already exceeded 280,000 vehicles per day.

Chinese government makes a blueprint of building several railways with total length of 12,000 km exclusively for passenger transport. By now, 9 such railways of over 3200km with speeds of 300 -350km/h have been under construction or are going to start construction, putting forward demands for railway steel products of nearly 1 million tons. It is estimated that over 400,000 tons of 100m railway steel products will be needed during 2007-2008 for railways exclusively for passenger transport.

Meanwhile, upgrading of about 5400km existing railways shows annual demands for 200km/h railway of some 400,000 tons per year.

Chinas lorry will be also upgraded from 2006, demonstrating great potential demands for steel products.

III. Steel Consumption Forecast for Construction Industry during 2006-2010 - In 2005, Chinas construction industry consumed 173 million tons of steel products, accounting for 50.55% of the nation's total steel product consumption, up 98.17 million tons from the consumption volume in 2000, representing average increase of 19.63 million tons per year. By 2010, the consumption, formerly estimated to rocket up by 53 million tons to 226 million tons (10.6 million tons per year on average), is expected to soar up by 85.5 million tons to 258 million tons, corresponding to average rise of 17 million tons per year. Steel consumption in construction industry will continue to climb up with lower growth rate during 11th Five-Year Period.

During 2001-2005, Chinas fixed asset investment for municipal construction was close to 2000 billion Yuan, accounting for 6.7% of the nation's total fixed asset investments. Chinese government will continue to invest over 200 billion Yuan to develop inter-city rail transit.

Besides, Chinas real estate industry will also post surprisingly great demands for steel products.

Chinas hot rolled H beam outputs surged to hit some 3.173 million tons in 2005 from 725 thousand tons in 2001, up 338%. In the mean time, the nation's imports began shrinking while exports boomed up.

By now, demands for H beam remain steady growth. By 2010, about 9 million tons of H beam will be required for construction while the nation's H beam capacity will reach some 9.55 million tons.

IV. Steel Consumption Forecast for Manufacturing Industry during 2006-2010

1. Automobile Industry
Chinas automobile outputs go up continuously with average rise in automobile sales volume of over 10% per year. In 2005, the nation totally manufactured 5.8 million vehicles of various automobile, needing 10.98 million tons of steel products. By 2010, the nation will pride itself on demands for automobile of 9-11 million vehicles, calling for 15.2-18.4 million tons of steel products, including 10-1-12 .2 million tons of sheet/plate products.

2. Shipbuilding Industry
Chinas shipbuilding industry has made great progress during recent years. The nation held 18.11% shipbuilding market shares internationally. During 11th Five-Year Period, among total steel products consumed in shipbuilding industry, 66% steel products will be applied to shipbuilding; 12%, to ship repairing; 2%, to ocean engineering manufacturing; 20%, to block construction. China National Offshore Oil Corporation is expected to set up 76 ocean platforms, lay 1400km submarine pipe line, 6 RPSO/SPM and 8 field terminals by then.

By 2010, 8.82 million tons of shipbuilding plate will be required, of which sheet/strip accounts for 85%. The nation's shipbuilding industry will show annual demands of 10.35 million tons of steel products.

3. Container Industry
China now is the top container maker in the world. In 2005, with 3.9 million tons of steel plate, 45 Chinese container makers accumulatively manufactured 2.32 million tons TEU, accounting for 93.55% of global outputs. Among these 3.9 million tons of steel plate, 2.2 million tons of steel plates were produced by domestic steel makers, accounting for 56%; 1.7 million tons of steel plates were imported from foreign countries, accounting for 44%.
By now, Chinas dry cargo container capacity has already reached some 4.5 million TEU. By 2007, the nation's container capacity is likely to surge to some 5.8 million TEU. It is expected that the nation will consumer about 5.3 million tons of steel plate to produce 3.08 million TEU container by 2010.

4. Light Industry
In 2005, 27 million tons of steel products were applied to Chinas light industry. It is expected that the industry will consume 36 million tons of steel products by 2010.

1. Steel products applied to home appliance production
By now, China has realized localization ratio of some 60% for CR sheet applied to its home appliance industry. The nation relies heavily on imported CR sheet of high superficial quality. Its domestic capacity can basically meet demands for HDG except 0.3mm HDG. China is also able to meet domestic demands for electro galvanized steel products with a few imports. 70% Himac steel plate is made from imported base plate by Chinese steel maker with the rest of 30% imported from other countries. Besides, color-coated sheet and galvanized sheet are generally imported ones.

By 2010, Chinas home appliance industry's demands for steel products will reach 7.2 million tons with average growth of 5-7% per year during 2006-2010, which is much lower than the average growth of over 10% during 10th Five-Year Period. And Chinese steel makers should pay more attention on how to improve steel product quality and their services.

During 11th Five-Year Period, Chinas domestic market for small home appliance will skyrocket up by 120 billion Yuan at least. Thus, small home appliance will boast greater demands for steel products during next five years although steel applied to small home appliance production only accounts for 10% of total steel products consumed in home appliance industry.

2. Steel products applied to bicycle production
Chinas bicycle output was elevated to 92.54 million vehicles in 2005 and is expected to be lifted up to some 120 million vehicles. The nation's bicycle exports hold 70% global market shares.

By 2010, Chinas bicycle production, consuming about 2 million tons of steel products, will ask for 2.6 million tons of steel products, containing 1.29 million tons of narrow strip steel, accounting for 50%. Aluminum alloy nave boss will be employed during almost 50% bicycles' production. Aluminum alloys, magnesium alloys and titanium alloys are used to make frame of minute-quantity bicycles.

3. Steel products applied to hardware production
In 2005, about 14 million tons of steel products were used to produce hardware, up 8-10% year on year, including more than 7.5 million tons of wire rod and over 3 million tons of sheet/plate products, among which 95% are homemade steel products. By 2010, about 18.5 million tons of steel products will be used to make hardware.

4. Steel products applied to daily groceries production
China totally contributed 1.5-2 million tons of steel products to daily groceries production, which is forecasted to have need of 2-2.5 million tons by 2010.

Among the total, about 300,000-400,000 tons of steel products were needed for making umbrella in 2005 and the volume is probably to balloon up to some 400,000-500,000 tons by 2010. Among the total, the electro galvanized steel products regarded as materials for producing stick for umbrella are made from full-hard coil imported from Taiwan region and S. Korea.

In addition, the rest of 1.2-1.5 million tons of steel products are applied to household ware production in 2005 and the volume is anticipated to boom up to some 1.6-2 million tons.
From the above, it can be concluded that some small-scale steel makers should change their minds and adjust product mix according to actual demands in order to sharpen their own competitive capability.

(Sourced from Mysteel.net)

Mineweb has reported that Mr Evo Morales president of Bolivia has threatened to return several mining concessions belonging to Glencore International to state control. As per earlier reports Bolivian officials will make public a plan on October 31 that will give the Bolivian Government and its state mining company Comibol unrestricted use of mining resources.

Glencore's Bolivian subsidiary Sinchi Wayra owns five operations mining zinc, silver, tin and lead, along with a tin smelter treating concentrates from Sinchi Wayra and third party miners. Glencore had bought Bolivia's largest tin smelter Compania Minera de Sur from former President Mr Gonzalo Sanchez de Lozada, who was also the founder and president of the Southern Mining Company known as COMSUR. Mr Sanchez was forced to resign as president in 2003 and now lives in the United States.

The winner of the 2006 Swedish Steel Prize will be announced on 29th November in ceremonial form at the Berns Salonger conference centre in Stockholm and the Prize will be handed over by Ms Susanna Kallur the European Champion in 100 meter hurdles. The prize is awarded to the company that puts high strength steel to best use in the design of its product.

The jury for this international design prize chaired by Mr Gan Carlsson the SSAB Tunnpl divisional CEO has nominated three finalists Fiat Auto and Wagon Automotive of Italy, Multina Inc of Canada and IMEM Ascensores of Spain.

In addition to the three entries nominated for the Prize, the jury decided to award a runner up title to the Brazilian company Industria Metalurgica Pastre LTDA, which has taken a major step forward by changing over from mild steel to advanced high strength steel for its new trailer for sugar cane transport.

Mr Gan Carlsson explained that "We want to inspire a new design approach worldwide. Reduced weight, higher strength, better profitability and totally new product properties are the benefits offered by high strength steels. Strength is the special characteristic of the steels, and this is why we have chosen the concept Strong as the theme for this year's Swedish Steel Prize."

The need for better properties and performance, combined with reduced environmental impact, lower production costs and improved profitability are the factors behind the successes of high strength steels. Mr Carlson said "Consumers make demands and companies must find ways of meeting them. High strength steels, particularly the advanced high strength steels, represent one way of meeting the demands of consumers, companies and society at large."

Commercial Metals has posted record net earnings of $128.7 million on net sales of $2.2 billion for the fourth quarter ended August 31. This compares with $83.7 million on net sales of $1.7 billion in the fourth quarter a year ago.

Net earnings were $356 million on net sales of $7.6 billion for the year ended August 31, compared with net earnings of $286 million on net sales of $6.6 billion last year.

Mr Stanley Rabin chairman of CMC said "We continued to benefit in the fourth quarter from favorable market conditions for most of our businesses and achieved excellent performance in all of our segments: Domestic Mills, Domestic Fabrication, Recycling, CMCZ (our Polish steel operation) and Marketing and Distribution."

Xinhua has reported that 6 miners died and 8 others are missing in a gas explosion on Saturday at 2:35 AM local time in a coal mine in Dianchanggou Township of Miquan City in northwestern Xinjiang Uygur region of China. Six other people working at the entrance to the coal mine received burns to their hands and faces. The cause of the blast was not immediately known.

Rescuers said they have found six bodies underground but eight other miners are still missing. Initially rescuers were unable to enter the mine as the temperature following the explosion was close to 1,000 degrees Celsius. They finally managed to enter the mine via an emergency tunnel at about 10 AM.

The state run coal mine, which lies about 30 kilometer east of the regional capital of Urumqi, belongs to Xingyaneng Construction and Chemical Industrial Company owned by the corps. It was built in 1958 and has an annual output capacity of 120,000 tons. The coal mine was contracted out to Ma Xiongyou in September 2003 and employs 113 staff.

Interfax has reported that Armenia's Pure Iron works reduced ferromolybdenum production by 13.3% YoY to 1,901 tonnes in January to September 2006 from 2,192 tonnes in the same period of last year. Its pure molybdenum production more than doubled to 361.5 tonnes from 178.5 tonnes.

The plant produced 3,000 tonnes of ferromolybdenum, 300 tonnes of metallic molybdenum and 150 kilograms of rhenium in 2005, compared with 1,900 tonnes, 250 tonnes and 300 kg respectively in 2004.

The company said ferromolybdenum output fell in line with world prices and that it had therefore started to concentrate on pure molybdenum, which is in demand and fetching a good price.

Germany's Cronimet Mining, which owns 51% of Pure Iron, markets the plant's products in Europe.

Chinese trading major Minmetals is planning to export at least 30,000 tonnes of zinc ingot in 2007. A company source told Platts "We were approached by a major producer recently to jointly export this amount with them. It's only a target amount, whether we can reach that remains to be seen."

The source said "The negotiations for next year's contracts usually start in November and end around mid December, so we will have better indications by then.

Minmetals exported small volumes of zinc ingots on a spot basis in 2006 on the back of better domestic market conditions.

The International Monetary Fund is forecasting that Ukraine's GDP will grow by 4.5% in 2007 and that the inflation rate will be 10%. The IMF is forecasting a 6% GDP growth and about 10% inflation rate for Ukraine in 2006.

The GDP grew by 5.7% in the January to August period of 2006 and by 7.1% in August 2006 as compared with the corresponding periods of 2005.

Mr Albert Jaeger of IMF forecast possible economic risks connected with increases in the price of imported natural gas and a fall in the price of steel. According to him, the forecast is based on a price of US$ 130 per 1,000 cubic meters of imported gas.

Preliminary construction on the Ramu nickel mine project is due to get underway by the end of this year, according to Australias Highlands Pacific, which holds a minority 8.56% stake in the project. The China Metallurgical Construction Corp will manage and operate the project in return for raising the financing. A definitive debt package is expected to be finalized also by the end of this year.

According to Highlands, the Chinese company is aiming for mechanical completion of the project in April 2009. In accordance with that timetable, a number of long lead items have been identified and orders placed.

At full capacity Ramu is expected to produce around 33,000 tonnes per year of nickel in concentrates.