December, 03 2006
Indias mineral production in September up by 3.92% YoY
Indias mineral production during September 2006 increased by 6.94% MoM as compared with July 2006 and by 3.92% YoY as compared with September 2005. Indian mineral sector has shown a positive growth of 3.11% during April to September 2006 YoY.
The total value of mineral production in the country during September 2006 was INR 5774 crore. The contribution of coal was the highest at INR 2279 crore Next in the order of importance were petroleum INR 1567 crore, natural gas INR 715 crore, iron ore INR 612 crore, lignite INR 164 crore and limestone INR 163 crore. These six minerals together contributed about 95% of the total value of mineral production in September 2006.
Production level of important minerals in September 2006 was coal 29.5 million tones, lignite 2.3 million tones, natural gas 2482 million cubic meters. Petroleum 2.8 million tones, bauxite 1033 thousand tones, chromite 194 thousand tones, copper cone, 12 thousand tones, gold 155 kilogram, iron ore 10.9 million tones, lead conc. 8 thousand tones, manganese ore 140 thousand tones, zinc conc. 78 thousand tones, apatite & phosphorite 107 thousand tones, dolomite 298 thousand tones, limestone 14.1 million tones and magnesite 22 thousand tones. A nominal production of diamond was also reported in the current month.
NCDEX to increase share of metals trading
National Commodity and Derivatives Exchange Ltd is aiming to double the share of metals trading in its total turnover in 2 years and shed its image of being an agricultural commodities exchange. It plans to change the turnover ratio of its agricultural commodities to metals to 60:40 from about 80:20 now.
Mr PH Ravikumar MD during an interview with Reuters last week told that a ferrous metal contract debuted last year and several base metals contracts were launched earlier this year. He added that variants of steel and lead contracts may be launched next year.
Mr Ravikumar said We have almost all the major metals, but the challenge is to build liquidity in all of them, Most of the actual users of commodities are corporates but many of them still see the exchange as a place to speculate.
NCDEX started three years ago with precious metals & a range of agricultural commodities and added other metals only much later. NCDEX now offers trading in eight metals including steel, aluminium, copper and zinc.
Delhi approves 1000MW phase of Pragati power plant
The Delhi government given it approval for commissioning the 1,000 MW Pragati-III gas based power project at Bawana with an estimated investment of INR4,500 crore by Pragati Power Corporation Ltd, which had earlier commissioned Pragati Power I & II. The project assumes significance in light of the Commonwealth Games 2010 and the anticipated surge in power demand.
Ms Sheila Dikshit CM of Delhi said that it was extremely important for her government to increase self reliance in power generation from plants located within Delhi so that it was not vulnerable to the vagaries of the Northern Grid and the political circumstances which influence inter state supply of power.
As per the report An MoU has been already signed with Petronet for supply of R-LNG which would be available by April 2009.
Power sanctioned for 5 steel units in Kanjikode
It is reported that 5 steel units including Krishna Steel Rolling Mills, Kanjikode. Paragon Steels, Thai Ispath, Kuttipulan Steels and Dhan Steels have been allotted power by the Kerla State Electricity Board to start production at Kanjikode in Kerala although Keralas Left Democratic Front Government had recently announced that that no new steel units would be allowed in Kanjikode.
Mr AK Balan electricity minister of Kerala while addressing a press conference in November beginning had retreated that "Left Democratic Front Government would not allow any new steel unit in Kanjikode. The panchayats should not accept any application from such new units. The existing units would be allowed to function only if they took all pollution control measures prescribed by the Kerala State Pollution Control Board."
31 units are already functioning in Kanjikode industrial area and pollution from these units is affecting the nearby textile firms and the local community.
IL&FS ties up with TAQA for funding power projects
It is reported that Infrastructure Leasing & Financial Services Ltd and Abu Dhabi National Energy Co known as TAQA has signed an agreement for joint development, financing and implementation of energy sector projects with associated transmission systems.
As per the agreement TAQA would commit up to $1 billion in select IL&FS assisted power and transmission projects through a special purpose vehicle. IL&FS will identify projects in the country and TAQA will bring in the necessary funds to develop the projects.
TAQA is a subsidiary of Abu Dhabi Water and Electricity Authority, a wholly owned company of the Government of Abu Dhabi. It has an asset base of more than $8.69 billion in the energy and water sectors.
IL&FS is involved as developer and advisor in power generation projects with an aggregate generation capacity of around 6,400 MW in the country. It had earlier executed an agreement with India Infrastructure Financing Company in order to raise resources of INR 6,000 crore to finance the senior debt requirements of IL&FS-assisted power projects.
NHPC awards civil contracts for hydel projects in J&K to HCC
Business Standard has reported that National Hydroelectric Power Corporation Ltd has signed a contract agreement worth INR 383.9 crore and INR 410.54 crore for the civil works package at the Nimmo Bazgo and the Chutak hydel power projects in Jammu & Kashmir with Hindustan Construction Company Ltd.
A senior official of NHPC reported told BS the 44 MW Chutak project would be constructed over the river Suru in the Kargil district of Ladakh while the 45 MW Nimmo Bazgo project would be located on the Indus in Leh.
The Nimmo Bazgo project is scheduled to be completed in 4 years and would generate 239.3 million units of power annually while the Chutak project will be completed in 54 months and generate nearly 216.40 million units of power annually.
JCB to expand manufacturing base in India
UK based construction equipment major JC Bamford Excavators Plcs wholly owned Indian subsidiary JCB India Ltd is planning for Rs 150 crore expansions to manufacture 14 tonne capacity heavy duty ex excavators for the mining industry followed by telescopic handlers in various ranges in the next couple of years.
Mr Vipin Sondhi MD of JIL said After feedback from the mining sector on the demand for 14 tonne excavators, the company has decided to produce such equipment too at its new Pune facility. At present, the company produces excavators with capacities of 8, 13, 20, 21 and 33 tonnes respectively.
JIL sells telescopic handlers by importing them from other JC Bamford Excavators group companies worldwide. Mr Sondhi said that With demand rising in the domestic market, courtesy the infrastructure projects boom, JIL has decided to produce construction equipment at Pune.
JIL started its manufacturing operations back in 1979 from its plant at Ballavgarh in Haryana through a 60:40 JV between Escorts Ltd and JC Bamford Excavaters Plc and progressively acquired the entire Escorts stake by 2003 to make JIL a 100% own subsidiary. JIL has subsequently set up two plants at Pune for producing construction equipment like wheel loaders, loading shovels, tracked excavators with and robotic skid steer loaders of different ranges.
L&T to reorganize business focus
ET reported that L&T has decided to close down divisions and units which do not achieve revenue of INR 5 billion by 2010, cut down the number of offices and sites to 150 from the current 400 to have a compact presence and that it will not participate in civil contracts less than INR 500 million and next year it will raise to INR1000 million.
As per the report, L&T has also set a target of a minimum revenue generation of $ 1 billion for its overseas companies to ascertain whether to retain those businesses and decided limit itself to the Gulf region to remain globally competitive.
Sandvik to set up manufacturing unit at Pune
Swedish Group Sandviks wholly owned subsidiary Sandvik Asia Ltd is planning to setup a new high speed steel plant under the Sandvik Tooling Division in Pune with an investment of Rs 45 crore. Sandvik has 5 facilities across the globe have the manufacturing of Taps and the new facility is being set up to cater to the increasing demand of Taps across the globe. The plant is expected to go on stream by 2008.
Mr Hakan Kingstedt MD and president of Sandvik Asia Ltd while speaking to reporters said that the estimated production in the new plant would be one million units in the first year. Currently the company is manufacturing about 250,000 units of Taps.
Mr A Srinivasan GM Tooling Supply of Sandvik Asia Ltd added that the plant would not only support the Asian market but is also being set up to make India the global hub. He said that the production would cater to 80% exports and 20% for the domestic market, when the plant became operational but the mix could change depending on the market conditions.
HCC clarifies on Sawalkote Project in J&K
Hindustan Construction Company Ltd has clarified the news published in leading financial daily titled that "Order cancellation hits Hind Const" that it has not received any written communication to this effect from either the state government and or J&K State Power Development Corporation.
HCC said that based on press reports, the Sawalkote Consortium, comprising of SPAS of Norway, Ozaltin of Turkey and HCC filed a Petition with the High Court of J&K at Jammu for seeking a stay on this decision of the J&K Government. The High Court on November 22, 2006 has passed an order directing the J&K Government not to call for new global tender and has further directed J&K State Power Development Corporation to maintain status qua as it exists till the next date of hearing which is December 13th 2006.
As per report the Jammu & Kashmir government, based on the recommendation of the Cabinet Sub Committee setup by it for the Sawalkote Project, had cancelled the contract and that they intended to go for global re biding of this project.
Geraldton Iron Ore Alliance to fight EPA ruling on Mt Gibson
Geraldton Iron Ore Alliance will fight an Australias Environmental Protection Agency recommendation against the Mount Gibson Iron Ltd's mine and infrastructure project claiming that the move threatened development in the state's Mid West region and Alliance will join with Mt Gibson in appealing against the environmental ruling.
The Alliance will lodge an appeal against the recommendations, contained in EPA Bulletin 1242 released earlier this week concerning the Mount Gibson Iron Ore mine and Infrastructure project.
Mr Clive Brown chairman of the alliance said The continued development of Geraldton and the improved sustainability of Midwest towns through the expansion of the iron ore industry has been put under a cloud as a result of the Environmental Protection Agency recommending that mining be prohibited in a substantial part of Mount Gibson's granted mining lease.
Mr Brown said "It is clear from the EPA bulletin that it wants large areas of the banded iron formations placed in the conservation estate which would effectively prevent the expansion of the iron ore industry in the Mid West. In fact, this approach raises the question as to whether the environmental agencies have earmarked, but not disclosed, areas they wish to convert into 'A' Class reserves.
Mr Brown said the EPA ruling had very serious ramifications for the Mid West region, as a large proportion of the iron ore resources in the region were hosted within banded iron formations. He said "All the iron ore companies in consultation with Midwest stakeholders, are investing substantial resources in planning new projects and it is vital for them to know if any areas within the region have effectively been earmarked for 'A' Class or other conservation reserves.
Mr Brown said the Mid West iron ore companies will continue to work cooperatively with the environmental agencies, the State Government and other stakeholders to manage environmental and other issues in a responsible and balanced manner.
ThyssenKrupp to increase nominal capital by 38%
ThyssenKrupp plans to ask its shareholders at the January AGM to approve the creation of EUR 500 million of authorized capital, equal to about 38% of the conglomerate's current capital stock, to support strategic measures.
Dr Ekkehard Schulz CEO of ThyssenKrupp during a press conference said The authorized capital will be available to the executive board for the purpose of a capital increase for a period of five years, subject to the approval of the supervisory board.
Mr Schulz also noted that the Alfried Krupp von Bohlen und Halbach Foundation has signaled that it intends to increase its stake above the 25% from its current 23.71% and may want to nominate three members to the supervisory board.
In addition to possible acquisitions, ThyssenKrupp needs capital in to fund its ambitious revenue growth plans. ThyssenKrupp wants to achieve mid term sales of EUR 50 billion per year in the first phase of its growth, but in the second, mid to long term phase, ThyssenKrupp wants to achieve EUR 55 billion to EUR billion. Mr Schulz said that ThyssenKrupp expects the second phase will be achieved within five years.
Australian Judge Blocks Coal Mine on Climate Grounds
The New South Wales Land and Environment Court decided last week that Centennial Coal Company Ltd, developer of the Anvil Hill mine, failed to adequately account for the greenhouse gas emissions from burning the coal that the mine would produce if approved and Justice Nicola Pain ruled that the New South Wales Department of Planning approval of the mine's environment assessment was void.
Justic Pain wrote that there is a sufficiently proximate link between mining of coal and the emission of greenhouse gases and that it should have been considered in evaluating the project. But she stopped short of ordering the impact statement be redone, saying only that the government must consider the impacts.
The case was brought by Mr Peter Gray, a student at the University of Newcastle, who sued Centennial Coal and the New South Wales Department of Planning. Mr Gray was delighted with the ruling "It's a huge win for the people of New South Wales and for the people of the globe, really. I mean, what we see now is that climate change is a real issue that the government will have to deal with. They can no longer stick their heads in the sand.
Centennial Coal is not deterred by the court's ruling and Me Bob Cameron MD said that any imperfection that may have existed as a result of not undertaking an assessment of downstream greenhouse gas emissions has since been addressed. Centennial has, in response to public submissions, prepared a document that comprehensively deals with the downstream greenhouse gas impacts of the project.
Centennial Coal is Australia's largest independent coal producer. It operates 11 mines in New South Wales, supplying power plants, industries, and export markets. The proposed Anvil Hill mine would produce 10.5 million metric tons of coal annually.
China to turn Haizhou open pit coalmine to industrial heritage site
Interfax has reported that an abandoned open pit coalmine in China's northern Liaoning province will be turned into an industrial heritage site including one of the country's first mineral mountain parks. The heritage site will showcase China's industrial modernization from the 1950s on and is expected to attract tourists for its display of interactive machinery.
Haizhou coalmine, which covers 7,000 square meters with a depth of 350 meters, was built during 1953-1957 period and had produced 210 million tons of coal by 2003. It closed down in 2005 due to a drain in coal resources and left a huge pit behind.
Mr Dai Xuefeng, one of the planners for the project from Chinese Academy of Social Sciences, told Interfax that it would cost RMB 600 million ($76 million) to treat the deserted mine to prevent geological disasters and would be a huge waste without further development.
Corus trustees call in pension experts
Timesonline has reported that pension trustees at Corus have hired Penfida Partners to advise them on the looming takeover battle between TATA Steel and CSN.
Penfida is an advisory firm set up by a group of ex Lazards bankers specifically to advise pension trustees in takeover situations. Its aim is to provide the analytical and advisory experience to trustees to put them on an equal footing with companies that have ready access to advice from investment banks
The trustees are in a powerful position to influence the outcome of the bid battle due to the huge size of pension schemes. CSN is yet to make a formal bid, despite having completed due diligence nearly 10 days ago. Banking sources said the hold up was likely to have been caused by the negotiations with the pension trustees.
Total Coal SA opens Forzando South coal mine
Total SA announced that its South African subsidiary Total Coal South Africa Ltd has inaugurated its latest underground coal mine Forzando South, located about 180 kilometers east of Johannesburg near the mining town of Witbank.
Forzando South mine will produce about 1.4 million run of mine tons of coal annually, which will enable TCSA to produce 800,000 sales tons of coal for the export market to be marketed internationally by Total Coal International, based in Paris.
OMZ signs deal for supply of rolls to NLMK in 2007
Uralmash-Izhora Group OMZs UralmashSpecStal has concluded a contract with Novolipetsk Steel for the production of working and back up rolls for its rolling mills. The contract provides for rolls valued at more than RUR 200 million in 2007.
In 2007 the company will supply rolls made with high-chromium steel (3%-5% chromium content) characterized by a high level of durability. The operating procedures for this type of rolls at a Model 2000 hot rolling mill were developed jointly by NLMK and UralmashSpecStal experts in order to raise the quality of the rolls.
UralmashSpecStal produces four types of steel forged rolls: back up and working rolls for hot and cold rolling and is a traditional supplier to NLMK. Some 30-50% of all rolls for various NLMK rolling mills have been supplied by UralmashSpecStal.
US Steel announces key management changes
United States Steel Corporation has announced three key management changes effective December 1st 2006. Mr Anton Lukac has been named plant manager of Edgar Thomson Plant, Ms Lisa A Roudabush has been named plant manager of Clairton Works and Mr Anton Jura has been named general manager processed products.
Mr Lukac and Ms Roudabush will report to Mon Valley Works GM Mr Mark D Whalen and Mr Jura will report to senior VP commercial Mr J James Kutka.
Mr Lukac will be responsible for the day to day operation of the Edgar Thomson Plant, Mon Valley Works' primary operations, which converts raw materials into steel slabs. Ms Roudabush succeeds Mr Lukac as plant manager of Clairton Works where she will be responsible for managing coking and coal chemical operations. Mr Jura will move from Kosice in Slovakia to Pittsburgh to succeed Ms Roudabush as GM processed products.
Mr John H. Goodish COO of US Steel said "U.S Steel truly benefits from having managers with such depth of experience and diversity of background ready to step into these demanding positions. Lisa Roudabush, Anton Lukac and Anton Jura bring a wealth of domestic and global experience and a history of excellence in managing some of US Steel's most important operations."
Assmang gets new mining rights for Kkumani iron ore mines
Assmang Limited, a 50:50 JV between African Rainbow Minerals Limited and Assore Limited announced that Assmang has been granted new order mining rights from the Department of Minerals and Energy for its Khumani Iron Ore Mine.
Assmang had been granted a mining right to establish an iron ore mine on Portion 5 and Remainder of Bruce 544, Portion 1 and Remainder of the Farm King 561, Portions 1, 2, 3, 4, 5 and Remainder of the Farm Mokaning 560 and the Remainder of Parsons 564. These properties are located in the Kuruman district of the Northern Cape Province.
In its first phase of construction, the mine will have the capability of producing 10 million tonnes a year of export iron ore. Subject to port and rail capacity and further board approvals, it is planned to expand the operation to 16.8 million tonnes (16 million export tonnes) per annum. This expansion is subject to the completion of a feasibility study currently being carried out by Transnet and it is expected that a decision will be made by September 2007.
Production from the new mine, the Khumani Iron Ore Mine, will substantially replace the iron ore currently being produced at Assmang's Beeshoek operation near Postmasburg, which is nearing the end of its mining and production life.
Consortium invests EUR 80 million in Mobarakeh Steel
Iranian news agency MNA has reported that a consortium consisting of a German, an Italian and an Iranian company along with a Swiss bank has invested EUR 80 million in Mobarakeh Steel Co as a part of Euro 300 million investment deals concluded six years ago.
As per reports these funds would be used by MSC for improving environmental standards, upgrading the products quality and taking saving energy measures.
AK Steel & IAM plan another meeting next week
AK Steels spokesman Mr Alan McCoy said the two sides plan to schedule another meeting next week and that a proposal first brought forth Oct. 19 remains on the table.
The International Association of Machinists represents about 1,800 locked out hourly workers at AK Steel Corp since March 1 when their labor contract expired without a new deal in place.
Venezuela to produce 4.9 million tonnes of liquid steel in 2006
Venezuela's steel institute, Ives, expects the country to close 2006 with record liquid steel production of 4.9 million tonnes, representing 83.7% of installed capacity.
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