Iron ore rich states of Orissa, Jharkhand and Chhattisgarh have called for imposition of a ban on export of iron ore to make it available to the domestic steelmakers at competitive price.

Mr Naveen Patnaik CM of Orissa, Dr Raman Singh CM of Chattisgarh and Mr Madhu Koda CM of Jharkhand held a meeting on this issue and observed that in view of the huge requirement of iron ore for captive consumption of the existing and new steel plants coming up in the states, it is desirable to impose quantitative restriction on the export of iron ore and that a well thought out transition plan has to be devised in consultation with the state governments and other stake holders for this.

The 3 chief ministers, in a joint memorandum to Dr Manmohan Singh prime minister opposed the recommendations of the Hoda Committee that the present regime of iron ore exports should continue and to be reviewed after ten years. They also opposed the observation of the committee that ore bodies should be reserved in favor of state public sector undertakings, but only for specified purposes.

The chief ministers said that certain suggestions of Hoda committee, if accepted for implementation, would have adverse impact on the ongoing process of industrial development in the three States.

Mr Patnaik told presspersons that the three of them along with their counterparts from at least two more states would meet the Prime Minister shortly to apprise him about the issues raised by them.

Coal India Ltd has finalized a strategy to complete outsourcing of all operations in the new mines to achieve its highest ever growth rate of 43% in production during the 11th Plan as compared to 30% in the current Plan. CIL plans to achieve a production level of 520.5 million tonnes by 2010-11 as against 363.8 million tonnes in 2006-07.

CIL is required to achieve a production growth of 157 million tonnes in 11th Plan as compared to 84 million tonnes growth achieved in 10th Plan and has accordingly envisaged taking up 120 projects with an ultimate capacity of 240 million tonnes during the Eleventh Plan, to contribute 70 million tonnes in 2011-12.

CIL aims to mechanize all its underground mines by 2017 and go in for mass production technologies. In 2006-07, the underground mines are set to produce about 46.27 million tonnes, increasing to 54.6 million tonnes in 2010-11. The production from opencast mines is targeted to increase to 465.9 million tonnes from 317.5 million tonnes over the same period.

While coal production has been outsourced in many mines of Mahanadi Coalfields, South Eastern Coalfields and Bharat Coking Coal Ltd, in Western Coalfields overburden removal from the opencast mines has been sourced out. At Eastern Coalfields and Central Coalfields, steps have been initiated to introduce outsourcing.

In order to increase the capacity of hydro power generation in the country, Indian government is taking several measures to bring down the cost of setting up hydropower projects by granting exemption and concessions on customs duty on imports of construction equipment as well as cement and steel.

As per reports, government is considering a customs duty exemption on import of construction equipment like tunnel burrowing machines, cable cranes, concrete pumps and heavy earth moving equipment for hydropower projects in line with the exemption for equipment used in National Highways Authority of India road projects and in steel and cement.

The government is also thinking of classifying both cement and steel used in power projects under Chapter 98.01 of the First Schedule of the Customs Tariff Act. At present, only machinery, equipment, and raw material for manufacture of machinery or equipment are classified under this schedule.

While the proposed 100% customs duty exemption for construction equipment is specifically for hydro projects, the concession on customs duty for cement and steel used in setting up or expansion of projects is fuel neutral.

IANS has reported that tribal have planned a massive congregation in Orissa's Kalinga Nagar January 2nd 2007 to mark the first anniversary of the deaths of 13 from their community killed in police firing there and that an estimated 50,000 tribal from different parts of the state as well as from Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh and West Bengal are likely to attend the congregation named Adivasi Mahameli.

Mr Chakradhar Haiburu president of Vistapan Virodhi Janmanch, an umbrella outfit of tribal involved in the anti TATA movement since the killings, said memory pillars for the 13 martyrs would be constructed with their names inscribed on them. He said "We have already started construction of a 70 feet high memorial pillar at Ambagadia village where all the 13 victims were mass cremated."

The 13, including three women, were killed at Kalinga Nagar when over 500 people facing eviction due to TATA Steel project clashed with the police at the industrial complex in Jajpur district.

ET has reported that the government is considering setting up a common energy regulator for electricity, coal, oil and gas sectors after a broad consensus emerged at a recent meeting of the Prime Ministers Energy Coordination Committee.

Oil sector already has directorate general of hydrocarbon to regulate & monitor exploration & production of oil assets and similar regulator for the gas sector is already on the cards. With this decision, coal sector would also be brought into regulatory network.

Mr Kirit Parikhs expert committee on IEP has also recommended bringing coal sector under regulation to curb powers of government committees for determining coal prices for different user industries.

As per reports, government is considering three multi sector regulators in infrastructure sector one each for energy, communications and transport. It is proposed that regulations should be light handed and tariff setting could be left to competitive markets in segments other than where elements of monopoly exist.

As per report the Gujarat government is planning to its port policy to facilitate smoother working of Gujarat Maritime Board and may carve out a new body from to give focus to the commercialization and development of the undeveloped 52 ports out of which 24 ports have the potential to be developed into intermediate cargo handling ports and the remaining are minor fishing ports.

The reports quoted a GMB sources as saying that the state government is planning to modify the port policy and frame new rules and regulations to facilitate the bifurcation of GMB, which will be known as the Gujarat Maritime Authority and will serve as a watchdog for the commercialized and privatized ports. The new body will be known as Gujarat Ports Development Corporation, which will focus on the development and commercialization of ports. The new GMA will ensure the overall development of the ports, while the commercialization part will be handled by GPDC.

ET reported that Damodar Valley Corporation has decided to undertake retail power distribution in its command area in Jharkhand following Jharkhand State Electricity Boards decision to exit from the power distribution within DVCs command area and will float an expression of interest to select its joint venture partner.

The report mentions that RPGs CESC is interested in teaming up with DVC for a distribution venture in Jharkhand. Mr AK Burman chairman of DVC said CESC which has shown interest and may also respond to the proposed EoI.

BL has reported that NTPC Ltd has called for establishing of a nation wide power exchange, which would basically function on the lines of commodity exchanges and provide a platform for buyers, sellers and traders of electricity to enter into spot and forward contracts.

NTPC, based on a report by its consultants Norway's NordPool Consulting AS and Crisil Advisory Services, has informed the Central Electricity Regulatory Commission on the broad contours of the exchange being planned by it, including the governing body structure and modalities of executing transactions.

According to NTPC's proposal, state owned power firms such as Power Grid Corporation of India Limited and PTC India Limited can chip in with about 50% of the authorized capital in equal proportion and the balance 50% can be issued subsequently to state power utility, financial institutions and banks.

The proposed company could have board level representations from CERC and the Government to ensure a more diversified ownership structure. The CERC would invite interested parties for setting up the exchange once the guidelines are the place.

Currently, inter regional power transfer capacity of around 6,000 MW is available in the country, which is expected to increase further to about 9,500 MW in the coming few years.

Nord Pool, the world's only multinational exchange for trading power and one of the most efficient pooling mechanisms, is owned by the national grid companies of Norway and Sweden. The exchange, established in 1993, has a market council comprising power traders and industry representatives that acts as the advisory board for all its activities. The council, in turn, reports to Nord Pool's board of directors.

Rashtriya Ispat Nigam Limiteds Visakhapatnam Steel Plant has won 3 awards at the National Award for Excellence in Water Management Summit conducted by the Confederation of Indian Industries at Hyderabad recently. VSP won the Excellent Water Efficient Unit Award, the Most Useful and Best Presentation Award and the Most Useful Case Study Award.

VSPs specific water consumption, which was about 7.8 cubic meters per ton of liquid steel in 2000 has came down to 2.54 cubic meters per ton of liquid steel in 5 years. As per reports, VSPs present specific water consumption rate of around 2.35 cubic meters per ton of liquid steel is considered as the best in the world.

Jayaswals Neco Ltd has informed that pursuant to the directions of the Regional Officer of Maharashtra Pollution Control Board, the supply of power to one of the plants of the company situated at Butibori in Nagpur has been suspended and as a result the operations at the above said Plant of the Company are affected from 11.30 AM on December 23rd 2006.

Jayaswal Neco said that it is making all the efforts to restore the power supply and resumption of the normal operations at the above said plant at the earliest and is hopeful to overcome the problem shortly.

Jayaswal Neco added that the operations of the Company at all other 6 plants operated at other locations are not affected and they are working as usual in the normal course.

Nippon Steel Corporation is reported to have changed its strategy and has charted an aggressive path for growth through acquisitions and investments.

Mr Akio Mimura President of NSC in an interview said that The Company is increasing investments in rival companies to expand revenue and deter predators. It was a conservative company, but we have started shifting our focus to expansion.'

Mr Mimura said that a drastic change in the industry has occurred when Mittal Steel bought Arcelor. He said We want to be bigger globally and this desire has been accelerated by the creation of Mittal Steel.'

Mr Mimura highlighted his company's purchase last week of an expanded stake in Usinas Siderurgicas de Minas Gerais SA and said We will boost our company's value by buying minority stakes, like we did for Usiminas.

It is reported that CVRD and POSCO have agreed for a 9.5% increase in the prices of iron ore for 2007. The increase will apply to the fine grade of ore from the Carajas mine in the Brazilian Amazon and from the system of mines in Minas Gerais in Brazil's central highlands.

It matched a CVRD accord negotiated with BaoSteel last week, under which clients will pay 73.2 cents per iron unit as compared with 66.85 cents in 2006 and 72.11 cents per iron unit for ore from CVRD mines in Minas Gerais.

YIEH has reported that Irans Safa Group has started to build Irans largest steel mill named Karun River in Khorramshahr.

As per report, the annual production capacity of crude steel would be 9.2 million tons and would produce steel plate, hot rolled coil and rebar. The mill will be put into production in 2008 by first phase, and full operation in 2010.

Argentina R Santiago shipyard has announced that Italy's Gruppo Beltrame is considering plans to build its first plant outside Europe in Argentina at a cost of about $ 53 million dollars to manufacture plate for the shipbuilding sector.

Mr Antonio Beltrame group's manager met with Buenos Aires province Production Minister Mr Dora Giorghi and ARS President Mr Julio Urien and expressed Beltrames interest in building the plant.

ARS said that one possible location for the plant could be the provincial district of Ensenada 60 kilometers south of Buenos Aires City, where ARS is located. The plant would manufacture between 150,000 and 200,000 tonnes a year of a kind of thick plate that is not produced in Argentina. About 70% of the production would go to the domestic market and the rest would be exported.

Privately owned Gruppo Beltrame has nine plants in Europe, where it produces 2.3 million tonnes a year and employs 1,950 workers. It also manufactures steel products for the building sector.

ARS is coming back to life after a virtual standstill last decade. This year it started building the first of several oil tankers ordered by Venezuela at a total cost that Giorghi put at 300 million dollars. The plate for the ships comes from Venezuela.

It is reported that the price of tin hit a 17 year high in London Metal Exchange on speculation that the worlds 2nd biggest producer of tin, Indonesia may limit exports of the tin next year and 3 month contracts on the LME climbed by 2.2% to $11,340 per tonnes the highest since 1989 and a gain of 73% in the past 1 year.

The latest price surge comes on the back of comments from Mr Diah Maulida DG of Indonesias Trade Ministry said that only companies with mining permits in Indonesia will be allowed to export refined tin.

Prices had already been expected to rise next year due to potential supply shortages from Indonesia as well as from China. French investment bank Societe Generale said last week that the closures have removed as much as 7,000 tonnes of refined tin from the global market meaning that there will be in a deficit of 3,000 tonnes this year compared with an oversupply of 26,000 tonnes in 2005, with a shortfall expected to persist until at least 2008.

As per media report, Arcelor Mittal, is looking for a non executive chairman next year as Mr LN Mittal is not interested in taking over as chairman in 2007, in line with plan set in place last June when Mittal Steel took over Arcelor.

Mr LN Mittal during an interview with the Financial Times said that he was not particularly interested in taking over as chairman in 2007. Mr LN Mittal said "I don't have the aim of being the chairman. I could do both jobs but am enjoying being chief executive.

As per earlier reports, Mr LN Mittal had initially planned to become chairman of Arcelor Mittal, when current chairman Mr Joseph Kinsch retires in 2007 but became CEO after Mr Roland Junck was moved aside.

Australias biggest engineering and construction company Leighton Holdings Ltd has announced that it bagged a contract of 5 years worth A$300 million from OneSteel Ltd.

Under the deal, Leighton Holdings will manage contract iron ore mining operations in the South Middleback Ranges.

The iron ore from the mines will be used at OneSteel's Whyalla Steelworks in South Australia and also sold externally.

OneSteels growth initiative, Project Magnet, will see it increase the production rate of magnetite and hematite iron ore in the South Middleback Ranges to over 9 million tonnes per year by the middle of calendar 2007.

US Federal Trade Commission announced that it has approved the takeover bid by US miner Freeport McMoran Copper & Gold for Phelps Dodge.

As per report FTC and the US Department of Justice Antitrust Division have completed their review and determined not to take any action, according to an early termination notice issued on December 22nd.

Freeport and Phelps announced in November a friendly merger under which the former would pay $25.9 billion in cash and stock for the latter to create the world's largest publicly traded copper company.

Freeport owns the giant, low cost Grasberg copper mine in Indonesia. Phelps operates mines in the southwest US and in South America and is developing the world class Tenke project in the Democratic Republic of Congo.

China has announced a curb on surging investment in its auto industry. According to National Reform and Development Commission, under the new controls, automakers that want to expand their factories have to show that sales exceed 80% of last year's annual production capacity registered with the government. Other automakers must sell 100,000 sedans or 50,000 sports utility vehicles or 50,000 multi purpose vehicles annually.

NDRC said that Chinas production capacity reached 8 million units by July 1st 2005 and is expected to hit 10 million in 2007 but demand was only 71.5% of capacity in 2005 and capacity will far exceed demand in 2010. It said "Structural surplus is the basic characteristic of the current auto industry's production surplus and is the major existing problem for the development of the current auto industry."

China has more than 100 companies producing cars and almost all of the world's major automakers including General Motors Corp, Ford Motor Co, DaimlerChrysler AG, Volkswagen AG, Toyota Motor Corp and Nissan Motor Corp etc have Chinese factories. According to the China Association of Automobile Manufacturers By the end of 2006, China will overtake Germany to become the world's 3rd largest auto manufacturer after the US and Japan.

During the January to November 2006, production reached 6.59 million, up by 27.92% YoY and sales grew up by 25.49% to 6.45 million. Chinese automakers said that auto sales are expected to grow by 22% this year to 7 million vehicles and expand by another 15% next year.

Chinese government is trying to slow an investment boom in industries including real estate, textiles, steel and auto manufacturing fearing that they could spark inflation or a debt crisis. The latest controls appear to have a bigger possible impact on foreign investors than earlier measures, which targeted industries in which the main competitors are Chinese.

BNamericas has reported that Mexican Grupo Villacero, with the sale of its Sicartsa steel operation to Arcelor Mittal, plans to focus on distribution and trade of the plant's products and further downstream operations.

Mr Ignacio Trevino spokesperson of Villacero told BNamericas that Villacero aims to invest the $901 million the company earned from the sale of Sicartsa after subtracting its $539million in debt in maximizing production at its steel transformation facilities in Monterrey.

Mr Trevino said that "We are going to inject resources into all these divisions to strengthen them and proceed to create products with more added value, which will allow us to consolidate our 50 year presence in the steel miniplate industry.

Villacero's divisions not included in the sale of Sicartsa include process galvanized plates, rod, rebar and steel strips.

By selling Sicartsa steel plant and other plants, Villacero also formed a 50:50 JV with Arcelor Mittal, through which Villacero will manage trade and distribution of all Sicartsa products from Mexico.

Xinhua has reported that Chinese Datong Coal Mine Group and Turkish Hattat Group have assigned a contract to prospect coal and methane in Amasra town of Bartin province of Turkey.

Datong and Hattat will excavate 5 million tons of coal annually in Turkey with a total investment of $2 billion in 5 phases.

Mr Hilmi Guler Energy Minister of Turkish said that Turkey would rather depend on coal, hydropower and renewable energy than natural gas and oil which are imported and the prices are soaring constantly. He said "Coal and water are the main pillars of our energy policy. The third one is renewable energy, and the fourth is nuclear energy and the last one is natural gas."

Mr Jin Shanzhong deputy governor of Shanxi said that China considers this contract as a turning point to further promote cooperation in the fields of science, technology, industry and trade between the two countries.

China's Datong Group produces more than 120 million tons of coal per year, ranking as the second largest in China and sixth largest coal mining company in the world.

BNamericas has reported that Brazilian pig iron producer Sideruna plans to secure by March a buyer for the output from its new pig iron plant in Brazil's Mato Grosso do Sul state which is due to start in February 2007

Mr Reinaldo Torres president of Sideruna told BNamericas that "We want to close a deal as soon as possible. We are currently in talks with two international groups." Mr Torres said that his company is open to negotiations with other companies, though Sideruna plans to sign just one contract.

Sideruna also operates a 60,000 tonnes per year pig iron plant in Minas Gerais of Brazil.

During January to October 2006 the consumption of steel product has totaled 363.08 million tons, up by 50.88 million tons or 16.3% YoY and down by 0.3% MoM. Among the total, domestic steel products went up by 23.8% to 380.61 million tons and import volume went down by 30.1% YoY to 15.3 million tons. Domestic market share reached 95.78% up by 2.8% YoY.

Consumption of sheets, plates and pipe products
Consumption of sheet & plate, strip steel and steel pipe totaled some 178.16 million tons. The consumption ratio of sheet & plate and pipe fell down to 49.70%, down 0.91% YoY. The total consumption of sheet & plate and strip steel recorded 152.53 million tons. The consumption ratio of sheet & plate and strip steel down by 1.04% YoY to 42.01%.

1. Medium plate
During January to October China medium plate consumption quantity posted 65.01 million tons, up by 8.25 million tons or 14.5% YoY. Domestic medium plate recorded 69.54 million tons, up 21.6% YoY; import volume of medium plate, 2.68 million tons, down by 53.06% YoY, export volume 7.21 million tons, up by 110.2%. Domestic medium plate has held 95.87% market shares, up by 1.18% YoY. Imported medium plates are mostly high value added products, which homemade products could not meet the demand, and mainly used in shipbuilding industry, oil pipeline, high pressure boiler, bridge, high-story construction and sea platform, etc. By now, homemade products could not meet the demand on both quality and capacity.

2. Sheets
In January to October, domestic sheet consumption totaled 55.62 million tons, up by 6.49 million tons or 13.2% YoY. Among these fresh sheet resources, homemade sheet hit 52.92 million tons, up by 44.7% YoY, imported sheet, stood at 9.79 million tons, down by 36.35%. Domestic medium plate has held 82.38% market shares, up by 13.6% YoY.

3. HRC
From January to October, China has totally consumed 15.85 million tons of HRC, up by 16.7% YoY. Domestic production has totaled 17.29 million tons, up by 44.45% YoY and import has totaled 1.16 million tons, down by 60.7% YoY. China domestic HRC has held 92.6% market share, up by 14.3% YoY.

4. CR sheet
CR sheet consumption in January to October has totaled 22.74 million tons, up by 14.7% YoY. Domestic output has totaled 20.5 million tons, up by 49.2% YoY, import has totaled 3.75 million tons, down by 43.7% YoY. Domestic CR sheet has held 83.5% market share, up by 17.1% YoY.

5. Galvanized sheet
China has consumed 12.02 million tons of galvanized steel sheets in January to October up by 10.3% YoY. The import volume of galvanized sheet has totaled 3.84 million tons, down by 12.8% YoY; homemade output, 10.6 million tons, up by 46% YoY. China domestic galvanized steel sheet has held 68.06% market share, up by 8.5% YoY.

6. Color coated sheet
From January to October 2006, China has totally consumed 1.74 million tons of color coated sheets. China domestic color coated sheet capacity rockets up dramatically due to quick color coated sheet productivity expansion in recent two years. However, output grows up slowly as the volume of base plate was limited. In January to October 2006, China has totally produced 1.86 million tons of color coated sheets, up by 25.7% YoY import has totaled 250,000 tons, down by 24% YoY, export, some 375,000 tons, up by 45.4%. China domestic color coated sheet market share has reached 85.6%, up 4.6% YoY.

7. Strip steel
From January to October strip steel consumption has totaled some 31.9 million tons, up by 11.85% YoY. Homemade strip steel stood at 32.54 million tons, up by 12.6% YoY, imported 520 thousand tons, down by 13.3% YoY, exported 1.17 million tons, up by 19.4%. The steel variety holds 98.34% domestic market share, up by 0.45%.

8. Silicon steel
From January to October, China has totally consumed 3.27 million tons silicon steel, up by 5.7% YoY. Domestic silicon steel output has totaled 2.67 million tons, up by 25.3% YoY, holding 75.8% of domestic market share, up by 9.5% YoY, import 790 thousand tons, down by 24%; export volume some 195,000 tons, up by 136%.

9. Seamless pipe:
From January to October Seamless pipe has totaled 10.76 million tons, up by 23.4% YoY. During January to October, China has imported 580 thousand tons seamless pipe, up by 5.3% YoY and exported 1.92 million tons, up by 71.98% YoY. Domestic market share reached 94.5%, up by 0.73% YoY.

10. Welded steel tube
China welded steel tube consumption reached 10.76 million tons, up by 15.1% YoY in January to October. Among the total, domestic welded steel tube has totaled 17.44 million tons, up by 24.9% YoY import has totaled 35 thousand tons, down by 89.8% and export has totaled 2.6 million tons, up by 89.2% YoY. Domestic market share has reached 99.7%, up by 2.4% YoY.

Consumption of section and wire rods
During January to October 2006, the total consumption quantity of common section products, bar products, rebar and wire rod reached 177.53 million tons, up by 28.38 million tons or 19.03% YoY, accounting for 48.8% of total steel product consumption, up by 1.12% YoY.

1. Rebar
Rebar consumption from January to October 2006 recorded 65.98 million tons, up 9.38 million tons or 16.6% YoY. Among all the newly added resources, domestic output totaled 68.6 million tons, up by 18.35%; import, 54,000 tons, down by 25.5%; export, 2.67 million tons, up by 86.4%. Domestic market share reached 99.92%, up by 0.05% YoY.

2. Wire rod
Wire rod consumption during January to October 2006 totaled 55.2 million tons, up by 16.7% YoY. Domestic output totaled 58.96 million tons, up by 19.6% and import totaled 579 thousand tons, up by 0.26%; export, 4.34 million tons, up 68.04%. Domestic market share reached 98.95%, up 0.17%YoY.

3. Section
China totally consumed 27 million tons of section products from January to October 2006, up by 24.76% YoY. Domestic output totaled 28.28 million tons, up by 31.23%; import totaled 270 thousand tons, down by 48.086%; export totaled 1.56 million tons, up by 254.5% YoY. Domestic market share reached 98.96%, up by 1.41% YoY.

4. Bar products
During January to October 2006 about 29.35 million tons of bar products were consumed in domestic market, up by 24.2%YoY. Among the total, domestic steel makers totally produced 30.4 million tons, up by 24.7%YoY, holding 99.02% market share, up by 0.11% YoY imported 286 thousand tons, up by 11.79%; exported 1.33 million tons, up by 34.5%.

(Sourced from Mysteel.net)

Los Tiempos newspaper has reported that. Bolivia's government will hold a mining summit during January to draw up new policies for the sector in the country.

As per reports, the new policies will be devised through a reorganization of technical, legal and tax aspects and participants will include representatives from La Paz, Oruro, Santa Cruz and Chuquisaca departments.

Mr Evo Morales President of Bolivia had earlier announced the recovery of all natural resources though no measures have been established yet for the mining sector.

Shanghai Port Administration has announced that the cargo turnover of Shanghai port will exceed 500 million tonnes in 2006 making it the worlds busiest for the second consecutive year.

Shanghai Port has handled more than 20 million twenty foot container equivalent units so far in 2006. It replaced Singapore port as the largest in terms of total cargo handling capacity in 2005 with a turnover of 443 million tonnes.

Shanghai port insiders say the development of the Yangshan deep water facility has boosted the port. Yangshan is an important bargaining counter for Shanghai Port to form an annual handling capacity of 30 million TEU.

The port is on the East China Sea and is linked to the mainland by a 32.5 kilometer bridge. Yangshan boasts a depth of 16 meters enough to accommodate the world's largest container ships.

Refractory sales by Russian Magnesite group in 2006 by preliminary estimate totaled about 1.58 million tons up by 15% YoY as against the level of last year.

Magnesite Group's Magnesite Combine increased shipments of products by 10% to 1.34 million tons, Incow Dalmond Plant increased production of refractory materials by 54% to 56 thousand tons and Macadam shipments by Nerud Invest enterprises doubled to 2 million tons. By the end of the year high rates of growth were also posted by the Group's new enterprises Magnesite Intocast Satka', Nanfan Dalmond and Fierfirst Zigburg.

Swedish truck maker Scania AB has announced that it has received an order for at least 300 construction trucks from Brazilian mining company Vale do Rio Doce. The value of the deal was not announced.

Scania said the trucks will be used for transporting iron ore at a mining project in Minas Gerais in Brazil adding that the deal contains an option to supply more trucks if needed.

Shipbuilders Association of Japan has reported that Mitsubishi Heavy Industries Ltd and other shipyards in Japan, have received 29% more orders in January to November 2006.

The report said new business climbed to 7.85 million compensated gross tonnes from January to November from 6.11 million gross tonnes a year earlier.

Scotiabank's Commodity Price Index, which measures price trends in 32 of Canada's major exports, has termed nickel as the top performing commodity in 2006, as it made an extraordinary climb by 159% over 2005. It added that a Super Cycle is expected in nickel, with prices staying strong through 2008.

Recent news that Australia's Ravensthorpe mine will not come on stream until 2008 instead of second half 2007 and that Inco-CVRD's Goro mine will be delayed until late 2008, has raised concern over supplies, in an environment of strong global demand growth for SS, which advanced by 12% in 2006.

China's enormous growth in stainless steel production, 38% per annum from 2004 to 2006, is likely to continue in 2007, up a projected 35%. Stainless steel distributors in G7 countries have not been able to rebuild their inventories in 2006 although there has been some limited shift from 300 series to the low nickel containing SS.

Siberian Coal Energy Company has announced that it is planning to increase the coal output of its Kemerovsky based entities by 17.3% in 2007 to reach 32.5million tonnes from 27.7 million tonnes in 2006.

SUEK said that investments would increase by 11% to gain RUB 5 billion as against RUB 4.5 billion currently and would be spent to modernize the equipment and acquire new facilities for the coal production.