Estimation for iron ore requirement of Indian steel industry

Dr. Akhilesh Das Indias minister of state for steel informed in the upper house of parliament recently that the quantity of hematite iron ore consumed by domestic steel plants during 2005-06 is provisionally estimated at 58 million tonnes as against 53.77 million tonnes in 2004-05 and 51.21 million tonnes in 2003-04.

Dr Das further informed that, as per the National Steel Policy, which takes compounded annual growth rate of 7.3% for steel production, the total quantity of iron ore likely to be consumed domestically by 2019-20 is 1.54 billion metric tonnes, assuming that 12% of steel production will be from scrap during all these years. He added that considering 7.3% CAGR, 20.18 billion tonnes of iron ore will be required by 2051-52 assuming that 12% of the production is from scrap.

Dr Das also said that, as per industry estimate steel capacity would be 208.34 million tonnes by 2019-20 and assuming the capacity growth at 7% CAGR beyond 2020-21, 42.40 billion tonnes of iron ore will be required by 2051-52. If the per capita demand for steel grows at 5.7 % CAGR and population at 1.6% CAGR, requirement of iron ore by 2051-52 would be 18.62 billion tonnes, assuming that 12% of the production is from scrap. If the per capita demand for steel grows at 9.6% CAGR and population at 1.6 CAGR, requirement of iron ore by 2051-52 would be 71.74 billion tonnes.

Indian government to cut down layers for approval of projects

It is reported that Indian government is planning to do away with the cabinet approval procedure to speed up public private partnership projects in highways, shipping and several other infrastructure sectors to cut down the long drawn procedure for PPP project appraisals & approvals, which is said to be the one reason for the slowing down of project implementation, especially in the road and shipping sectors.

As per the report cabinet note drafted by the finance ministry, all PPP projects under the National Highway Development Program Phase V and in the shipping sector would not require a Cabinet approval. The Ministry has also proposed to enhance the minimum threshold for its PPP appraisal committee approvals substantially for both the sectors.

The Finance Ministry feels that the PPP discipline will have to evolve through pre fixation of tariff, transparent competitive bidding and appropriate risk allocation since PPP projects involve public money

Currently, PPP projects in select sectors involving a capital cost or cost of the underlying assets in excess of Rs.100 crore will have to pass through a two stage PPP-AC approval mechanism.

Status quo on Indian iron ore export Reports

Amid the intense lobbying war between Indian steel makers and iron ore miners for last few months, miners seems to have won the round 1. Reports in media during last week mention that department of commerce has given indication that there is no possibility of imposing a ban or a cap on iron ore exports as the iron ore resource position is not as bleak as it is made out to be by the anti export lobby except the prevailing restrictions on high grade iron ore of 64% iron content which is under canalization.

According to the reports, despite the consumption and export in 2005-06, about 8 million tones iron ore was left over as surplus and as such this has been the trend for the past many years as production remains more than double of domestic consumption. Moreover issues relating to unemployment, predominately in tribal areas, in case iron ore production cuts are taken and environmental hazards due to piling up of fines, which constitutes 84% of the total iron ore exports, favor status quo.

High powered committee of secretaries, appointed by the government to decide the policy of iron ore, last week had failed to reach a consensus on the matter and the matter was referred back to the government. The differences between the steel and mining ministries has been the main reason for the failure of the CoS to reach any agreement on iron ore exports as the commerce ministry, planning commission, department of industrial policy and promotion and finance ministry have all supported that there should be no ceiling or canalisation or licensing of iron ore exports.

India tops the list of AD investigation in H1 of 2006

According to World Trade Organization statistics, India figures among the worlds largest users of anti dumping measures on imports from other nations and has initiated the maximum number of investigations during January to June 2006 totaling 20 followed by European community with 17, Australia with 9 and Argentina, Indonesia & Turkey with 5 each.

As per data compiled by the WTO, the number of new anti dumping investigations worldwide declined but new final measures increased in January to June 2006 period as compared to the corresponding period of 2005. During the period, 20 countries started a total of 87 new investigations down from 105 in the same period last year and a total of 15 countries applied 71 new final anti dumping measures as compared to 55 in the corresponding period of 2005.

China remained the most frequent subject of anti dumping inquiries, as well as duties imposed by importing countries. Chinese products accounted for 15 of the new measures and 32 new investigations.

CIL to install alarm system in ECL mines to avert accidents

Statesman News Service has reported that Coal India Limited, after the cave in Shyamsunderpur coal mine pit of ECL which claimed the lives of six miners, wants to install an automatic alarm system in the mines of Eastern Coalfields Limited to help prevent the cases of mine mishaps.

Mr PS Bhattacharya CMD of CIL after inspecting the mishap site described the incident as unfortunate and said The higher officials of the ECL should not be blamed for the mishap as it was cave in was unprecedented. However, an inquiry committee has been instituted and the detailed probe will bring out the lapses or lacunae if any and action would be taken accordingly. We have suggested including members of Coal Mines Research Institute, Dhanbad, in the inquiring team.

Mr PS Bhattacharya stressed to expedite the inquiry and bring back normalcy in mine operations at the earliest. He added We are planning to install special automatic alarms inside the mine pits to get an indication prior to any mishap. The matter will be dealt with priority and the expertise by the central research institutes would be sought in this regard.

TATA Steel committed to support sportspersons

TATA Steel has reiterated its committed to support emerging sportspersons from the country and help them achieve glory at international level.

Mr B. Muthuraman MD of TATA Steel while felicitating sportspersons at the sideline of the 22nd Sub Junior National Boxing Championships 2006 said that the company was taking interest in a variety of sports and would support these.

During the facilitation ceremony, Mr Muthuraman handed over cash prizes to Ms Aruna Mishra winner of silver medal in 65 kg welter weight category at Women's World Boxing Championship in Delhi, Mr Prabhat Kandir & Mr V Pranitha winners of individual silver medals at the 9th Junior World Archer championship and Mr A Raju, Mr Rajiv Basumatary & Mr R Hembram winners of bronze medal at the 3rd Cadet World Archery championship in Mexico in October.

Jindal Saw Limited upbeat on water, oil & gas transportation segment

Jindal Saw Ltd has outlined the bullish trend in water and gas & oil transportation segment in India, which is driven by the investments and expects to better its performance in the next financial year.

Jindal Saw Ltd said that SAW pipe, seamless pipe and ductile Pipe industry caters to the infrastructure requirements of an economy. In India high targets of growth in terms of gross domestic product have been set in the range of 8% to 9% per annum. Industry experts have already expressed the need for greater infrastructure development in the country to meet such ambitious targets. Energy is one of the key infrastructure areas, which need to be developed. The transportation of oil and gas is key factor as power and downstream units assume significance.

It added that Major investment in the exploration of oil and gas reserves in the country has resulted in the identification of reserves by private sector as well. All these developments are expected to culminate in a major demand for line pipes, the most secure and cheap mode of transportation of oil and gas. In addition, the goal of supplying water to the most remote of villages and the development of water supply and sewerage systems should continue to generate demand for pipes in the water sector.

RINLs quality circle teams win at international convention

Two quality circle teams High Rise from traffic department and Pinnacle from water management department of Rashtriya Ispat Nigam Limiteds Visakhapatnam Steel Plant have won silver and bronze medals in the International Convention on Quality Control Circles-2006 held at Bali in Indonesia from November 20th to 24th.

The convention was the most unique international Quality event organized by International Quality Circle Convention in association with International Quality Management Association of Indonesia. QC teams from different countries exchanged information and experiences. About 150 teams consisting of 1,000 delegates from various organizations of south East Asia like Japan, Malaysia, China, Singapore, Thailand, Indonesia, India, Korea, Hong Kong, Taiwan, Bangladesh and Philippines etc participated in the convention.

Seas Goa sees firm demand for iron ore next year

During an interview with CNBC-TV18 last week, Mr PK Mukherjee MD of Sesa Goa gave his perspective on where iron ore and met coke prices are headed.

According to him, iron ore prices may go up marginally next year as there is firmness on the demand side especially in China. Mr Mukherjee said that "Chinese demand this year is going as strong as we could predict. 18% growth is still going on to crude steel production and at this rate, they will be crossing 410-420 million tonnes of crude steel production this year as against last year's 350 million tonnes."

While speaking for met coke Me Mukherjee admitted that benchmark Chinese imports prices had fallen to the level of $120 FOB level and no business could make profit under the situation. Mr Mukherjee added that "However recently, the price has gone up and Chinese coke is coming into India now at $200 CFR. If this trend continues, I think we can expect reasonable profit over a full year."

Foundation to be laid for new terminal at Chennai port next month

It is reported that on the 125th year celebrations of the Chennai port on January 17th 2007, Mr M Karunanidhi chief minister of Tamil Nadu will lay the foundation for the Chennai port's second container terminal.

This terminal will be developed on a build operate transfer basis at a cost of INR492 crore. The project has been awarded to the combine of Port of Singapore-SICAL Limited.

As per the report at the same function, Mr Karunanidhi will lay the foundation for three projects at the Ennore port. The projects include INR500 crore iron ore terminal, INR350 crore coal terminals and INR196 crore liquid bulk terminals.

POSCO India launches Oriya version of its website

Amid stiff opposition to POSCO Indias proposed steel plant in Orissa, it has launched Oriya version of its website, as an effort to showcase its desire to placate people of Orissa.

Mr Soung-Sik Cho CMD of POSCO India said "Sharing of information is vital and this Oriya version of our website will act as an effective channel of information for the people of Orissa, especially from the plant site area. It is intended to be a platform for two way communication between the company and its stakeholders."

The report mentions that this move conveys POSCO Indias intention to communicate in a transparent manner with all possible stakeholders, who in all probability would be limited as the effected people may not have the access to internet.

Nippon Steel president confirms interest in BaoSteel

Bloomberg has reported that, worlds 2nd largest steel maker Japanese Nippon Steel Corp may buy a stake in Chinas largest steelmaker BaoSteel Group Corp.

Mr Akio Mimura president of Nippon Steel told reporters in Tokyo that Mr Xie Qihua chairwoman of BaoSteel during their meeting on last Friday proposed having Nippon Steel buy into BaoSteel to strengthen the companies' ties and Nippon Steel will consider the purchase on the basis of profitability.

Nippon Steel has been boosting business ties and cross shareholdings among its allies to create a web of interests and narrow a gap with the newly created Arcelor Mittal, which is about three times bigger than Nippon Steel. Nippon Steel and POSCO have already agreed to raise their stakes in each other in October. Nippon Steel has also agreed to buy a 1.7% voting stake in Brazilian steel maker Usiminas while tightening its capital and business ties with its smaller Japanese allies Sumitomo Metal Industries Ltd and Kobe Steel Ltd.

Chinas iron ore import growth to slow down

China Iron & Steel Association during the 6th China International Steel & Raw Materials Conference reported that in last 5 years, China's crude steel production has increased by 223.8 million tons resulting in increasing imports of iron ore amounting to 275.26 million tons.

In million tonnes
Source - CISA

However China has been experiencing a downward trend in volume and growth rate of import of iron ore this year.

Volume in million tonnes

The slowing trend of growth is due to production increase of local iron mines. It is estimated that large and medium mines produced 350.4 million tons of iron ore during January to August this year or a 36.07% increase from last year. Smaller miners may have produced 66.7 million during that period so the total local miner's production amounted to 417.2 million tons.

CISA forecasts that during 2006 to 2010 the annual crude steel production shall be around 13%, therefore the total consumption of iron ore shall also experiencing a change from a high growth to a steady growth and that the share of local iron ore will be increased as rapid increases of production are expected in the future.

However, the growth of domestic iron ore production will be limited by both technical and economical disadvantages as China's reserves accounted for only 9% of the world total and out of which 97% are low grade deposits. Average Fe content is low in the range of 33% and rich ores of more than 50% Fe content are less than 5% of the total resources. 50% of the iron ore resources are difficult to mine and to be processed.
(Sourced from Mysteel.net)

POSCO to leverage FINEX technology for growth

Korea Herald has reported that POSCOs new technologies for steel making and strip casting for cutting steel making costs drastically and produces high value added products more efficiently are currently being tested at its Pohang Works and a 1.5 million ton FINEX plant will be completed around mid April next year. The 1.3 trillion won ($1.4 billion) FINEX facility in Pohang broke ground in August 2004 after a demo plant, capable of producing up to 750,000 tons per year, began operation in June 2003.

The FINEX technology, jointly developed with the Austrian engineering company VAI for last 14 years, allows direct use of low grade iron ore saving 15% of production costs. POSCO said that, as the smelting reduction process does not require sintering and coking plants, construction costs for a FINEX unit are also about 8% less as compared to conventional steel mills. It also lessens air pollution by emitting 92% less SOx, 96% less NOx and 79% less dust.

FINEX is likely to be the solution for POSCOs future steel mills abroad such as India where iron ore is less ferrous compared to those in Australia or Brazil.

Mr Bae Jin-chan superintendent of POSCOs FINEX operation group told The Korea Herald that We plan to build two FINEX furnaces in India by 2010, each capable of producing 2 million tons of crude steel annually and 4 more same sized units if possible.

Mr Bae however said that As the first steelmaker to put this cutting edge technology into use, we are not planning to share FINEX operation know how with others for the time being. But since technological generalization is just a matter of time nowadays, it is crucial for POSCO to secure sufficient and inexpensive resources overseas.

ThyssenKrupp forecast strong SS outlook

While delivering the financial results German steel giant ThyssenKrupp gave an upbeat assessment of the outlook for the stainless steel sector in its full year.

As per the report ThyssenKrupp expect demand for stainless steel and the high performance materials nickel alloys and titanium to continue to rise in 2007, both in Europe and North America and also in Asia, in particular China.

It said While in China most producers have been operating below capacity due to strong capacity growth in recent years, producers in Europe and the USA are barely able to keep up with demand. forecasting moderate sales growth in the new financial year to September 2007 based on volume and structural improvements in stainless steel flat products and higher base prices.

BaoSteel takes over Xinjiang Bayi Iron and Steel Report

Platts has reported that China's largest steel company, Baosteel Group, has taken over Xinjiang Bayi Iron and Steel last week, achieving one of its targets to further expand its steel business. A Baosteel official told Platts that "We have reached our goal and have successfully taken over Bayi Steel but we haven't publicly announced the news yet.

As per report, Senior management of Bayi Steel visited BaoSteel in July 2006 and started the dialogue and takeover details were subsequently finalized in October 2006.

The deal gives BaoSteel access to central Asian markets for construction steel, as well as Bayi's coal and iron ore reserves. Bayi has a capacity of 3 million tonne per year of construction steel and has nearly completed a mill with an additional capacity of 3 million tonne per year of steel sheet. Bayi Steel has rich iron ore reserves where BaoSteel mostly imports iron ore.

BaoSteel had produced 22.73 million tonne of steel in 2005 and plans to achieve capacity of 20 million tonnes by 2010. It has also entered cooperative agreements with Maanshan Iron and Steel and a deal with Shaoguan Iron and Steel Group to build up a 10 million tonne per year Greenfield steel project in southern China.

ThyssenKrupp to take all steps to get Dofasco

Easy Bourse, citing Dr Ekkehard Schulz CEO of ThyssenKrupp, has reported that ThyssenKrupp might take legal action to secure a takeover of Canadian steel maker Dofasco who said that he doesn't rule out legal action but it would be only as a last resort.

Mr Schulz said that his company will intensively work toward a taking over of Dofasco adding that ThyssenKrupp legal advisors believe that the Dutch holding trust that controls Dofasco can be dissolved. Mr Schulz added that the US Department of Justice has given Arcelor Mittal until January 29th to divest Dofasco, which was a condition on Mittal Steel's takeover of Arcelor.

The agreement under which Mittal Steel would sell Dofasco to Thyssen expires in late March or early April and Mr Schulz said that a solution to the dispute could be achieved by then.

ThyssenKrupp lost a bidding war with Arcelor over Dofasco in January, but during Mittal Steel's takeover battle for Arcelor, Mittal Steel pledged to sell Dofasco to ThyssenKrupp. However, Arcelor put Dofasco into a Dutch holding trust to prevent the sale as part of its defense against Mittal Steels takeover.

ThyssenKrupp is aiming for a 5% market share in North America in the next few years, growing from supplying about 1 million tons of flat steel to 5 million tons of finished products.

China's energy sectors steel consumption forecast

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

During 11th Five Year period of 2006 to 2010, China will invest 350 million Yuan in energy construction. Thus, the nation posts great demands for steel and steel products.

I. 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.

II. Steel Consumption in Petrochemical Industry

In 2005, about 4.05 million tons to 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 million tons to 6.5 million tons of steel products by 2010.

1. 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 pipe, 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, Chinas Tianjin Pipe Corp. is Chinas 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.

2. 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.

III. 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. Chinas 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.

(Sourced from Mysteel.net)

Votorantim to build new FeNi plant

Brazilian metals group Votorantim has announced expansion of its nickel production with a new 10,600 tonne per year new nickel capacity in its ferronickel plant near its existing operations in the state of Goias at estimated investment of 558 million reais. The project is to start production in 2009.

Feed for the plant will come from the companys existing nickel mine operated by subsidiary Niquel Tocantins. The new plants output will be directed exclusively to the export market.

Mr Joao Bosco Silva director superintendent of Votorantim said that the demand for nickel is growing between 4% and 6% a year and there is not that much supply growth from new projects in the world.

Votorantims existing operations in the state of Goias comprise a mine and a refinery, where capacity was lifted to 23,000 tonne per year last year. Votorantim also operates the 10,000 tonne per year Forteleza smelter in the state of Minas Gerais, which supplies matte to the Norilsk Nickel.s Harjavalta refinery in Finland.

Germany may drop plans to close all coal mines by 2018

WirtschaftsWoche quotin sources at the federal economy ministry and its regional counterpart in North Rhine-Westphalia has reported that German government may drop plans to end coal mining in Germany by 2018 opting instead to continue operating three mines and that one of the three may be the Prosper-Haniel mine in Bottrop, which is the country's most productive.

Germany's mines are owned by RAG AG, which is hoping to launch an initial public offering next year, raising around EUR 5.5 billion. Should the government press ahead with plans to end coal mining during the next decade, it has said it would use the IPO proceeds to cover the decommissioning costs.

Oriel Resources ropes in EDB for financing Voskhod chrome project

UK based nickel and chrome miner Oriel Resources plc announced that it has reached an agreement with the Eurasian Development Bank to help fund its $131 million Voskhod chrome project in northwest Kazakhstan. Under the agreement EDB will provide $60 million of funding alongside investment banks HVB and WestLB, who initially agreed to provide a US$120 million loan facility.

Mr Sergey Kurzin CEO of Oriel Resources said The board is extremely pleased that EDB has been able to join HVB and WestLB and is finalizing its approval to be a major part of the $120 million financing for the project.

Oriel plans to become a low cost nickel and chrome producer within the next three years through Voskhod and the 90% owned Shevchenko nickel project in Kazakhstan, which are ideally located close to the worlds growing stainless steel markets of China, Russia, Europe and Asia.

Big 3 to expand iron ore sales to China

World's top three ore miners, CVRD, Rio Tinto and BHP, have produced 367.33 million tons of iron ore in the first three quarters of this year, up by 8.6% or 29.12 million tons from the same period of the year before. By contrary, China's ore imports rise by 21.6% or 47.93 million tons YoY.

ISII statistics reveal that pig iron output in countries other than China only increases by 2% YoY while that in EU, Japan and North America, the major ore importers, reduces by 160,000 tons in the first nine months.

Quarter wise iron ore output of CVRD, Rio Tinto and BHP during last 3 years

Therefore, China would remain the engine for sizzling growth of pig iron output in the future, which means most of the ore production increment would continue flowing to China. Last year, big three supplied 40% of China's total ore imports under long term contract. It is predictable that the global leading ore miners would step up the ratio of contract ore exports to China in coming years.

As a result, Brazilian miner CVRD has recently announced that it signed new and additive long-term contracts to sell iron ore to a group of Chinese steel companies, which will involve additional average annual sales volume of 19.4 million tons between 2007 and 2017 and 8.1 million tons between 2018 and 2031. Most of the Chinese mills are medium-sized with output between 3 million to 4 million tonnes. Long term stable supply of ore has always been one growth bottleneck for them to seek expansion.

Market share of CVRD, Rio Tinto and BHP in various export destinations

All these three miners are making great endeavors in expanding capacity to meet robust China demand. Rio Tinto has spent over $4bln in raising up output to 200 million tons by 2010. BHP has completed AU$1 billion investment, with further investment of AU$1.3 billion and AU$1.4 billion for lifting its output to 130 million tons by 2008 and 152 million tons by 2010. CVRD has a more ambitious plan, increasing capacity of its Carajas mine to 100 million tons, Brucutu to 30 million tons, Fazendao to 14 million tons, Fabrica to 5 million tons and Itabira to 3 million tons in the future.

As a result of exploding domestic ore production, China's ore imports growth has slowed down, hitting a four-year low in the first ten months of this year.

(Sourced from Mysteel.net)

NRP to acquire DD Shepard coal property for $110 million

Houston based Natural Resource Partners LP announced last week that it has agreed to acquire the DD Shepard property for $110 million, which is expected to generate about $20 million in coal royalty revenue in 2007 and over $2 million in gas royalty and wheelage fees. NRP said that the current owner is a charitable organization. It expects the acquisition to close in early December.

Natural Resource Partners plans to acquire nearly 25 thousand acres containing more than 80 million tons of coal reserves in remote Boone County in the southern West Virginia coal fields. The DD Shepard property also contains gas reserves and timber.

MCC, BERCI & Mughal Steel sign MoU for steel plant

A MoU was signed last week between Chinese Metallurgical Construction Corporation, Baotou Engineering and Research Corporation of Iron and Pakistani Mughal Steel for transfer of technology for steel making from indigenous iron ore reserves for setting up a 500 cubic meter blast furnace and other facilities.

The project is planned to be completed by end of March 2008. With the completion of the project present production capacity of Mughal Steel will increase to 1 million tonne per year with modern equipment and automation & control system thus widening its products range and improve quality.

Addressing on the occasion Mr Jahangir Khan Tareen Pakistans minister for industries, production and special initiatives highlighted the significance and salient features of the MoU and said that it was first agreement of its kind between two steel making organizations of China and Pakistan.

Japan & Indonesia sign agreement for EPA

ANTARA has reported that Japan and Indonesia during a meeting between Mr Shinzo Abe prime minister of Japan and Mr Susilo Bambang Yudhoyono president of Indonesia signed an agreement for Economic Partnership Agreement to be ready for implementation only in the second semester of next year

Ms Mari Elka Pangestu trade minister of Indonesia last week said that Indonesia and Japan would exempt a number of their commodities from rules under their Economic Partnership Agreement. She said "We will negotiate for the exclusion of some strategic sectors and sectors which are not yet ready for the EPA and have agreed not to do anything about them. She said Indonesian commodities to be exempted from EPA rules were rice and steel. She said "For iron and steel we have asked for more time before we lower their import tariffs."

As per the new agreement special tax exemption has been introduced for steel trade in 5 applications including automobile & parts, electronics & appliances, energy, construction machinery and for re export. In addition the tariff for semi finished steel products, electrical steel, rail, some stainless and some special steel products is terminated immediately. The free tax trade will be expanded to some welding pipe, some stainless and special steel in 7 years, to tin free steel and some special steel in 10 years and some hot rolled flat steel in 15 years.

TGTI secures license for new technology from University of Toronto

Techint Goodfellow Technologies Inc announced that it has signed a licensing agreement with Professor Murray J Thomson and Professor Salvador Rego Barcena of the University of Toronto to commercialize a new infrared emission spectroscopy optical sensor for real time measurement of combustion gases including CO, CO2 and temperature. As part of this agreement, TGTI has also entered into a sub-license arrangement with Unisearch Associates Inc who will exclusively manufacture this new technology.

Mr Howard Goodfellow president of TGTI said This new optical sensor technology is complementary to our well proven Goodfellow EFSOP Technology. TGTI has had a long standing relationship with Professor Murray Thomson and Salvador Rego Barcena, co inventors of the technology and their team and we believe that the successful commercialization of this novel technology will provide significant energy and environmental benefits for the industrial sector.

This new passive sensor measures the gas composition and temperature remotely by analyzing the infrared emission spectrum emitted from an industrial furnace and does so significantly faster than the existing technology.

Evrazruda to complete modernization of iron ore concentration plants

It is reported that Evraz Groups iron ore mining division Evrazruda will complete the modernization of its primary concentration plants in the first quarter of 2007, when it completes reconstruction of its 6 crushing and concentrating plants.

As per reports the main CCP reconstruction work under the investment program has been done by now, which aims at up grading primary concentrates and decreasing loss of iron with magnetic separation tailings. New magnetic systems were installed on separators as a result of the reconstruction. They have enhanced magnetic fields that allow increasing iron recovery in ore concentration.

The plants at the Tashtagol, Irbinsky and Abakan branches should achieve production targets by the end of 2006, while the upgrades to plants at the Gorno-Shorsky and Tei branches, as well as the Kaz branch, where a new Sandvik crusher will be installed, are expected to be completed in the first quarter.

Abraaj & BMA acquires 80% stake in M/S Forgings

Abraaj & BMA Capital of Pakistan announced last week that it has acquired controlling interest of 80% in M/s Forgings, Pakistans largest steel forging house, specializing in steel components for the automotive industry for both domestic consumption and export.

M/s Forgings Founded in 1974, has evolved into the leading supplier of steel forged components for the domestic automotive industry.

Pakistans automotive industry has seen tremendous growth over the past 5 years with the market for locally assembled vehicles growing at over 30% per annum. Analysts expect current growth levels to continue largely on back of the macroeconomic growth in the Pakistan economy and the continued proliferation of automobile financing.

Russian OMZ and Arcelor Mittal sign contracts

Uralmash Izhora OMZs UralmashSpetstal has settled the contracts worth EUR 4.5 million with Mittal Steel Temirtau in Kazakhstan and Mittal Steel Skopje in Macedonia to supply rolls. In addition, it is likely to sign more contracts of more than EUR 2.5 million with Mittal Steel Galati in Romania, Mittal Steel Ostrava in Czech Republic and Mittal Steel Poland.

As per release, preliminary agreement between Arcelor Mittal and UralmashSpetstal was also reached to ship the products to Arcelor Mittals Arcelor Brasil-CST & Arcelor Brasil-Vega do Sul in Brazil, Bremen in Germany, Gent & Dunkerque in Belgium, Belvol in Luxemburg and Arcelor Madrid in Spain. As per report the specialists of UralmashSpetstal are to visit Arcelor Mittal in Europe in January 2007 to make final decision on all technical issues.

OMZ is the largest heavy engineering company in Russia working in the sector of heavy engineering, production, sales and equipment servicing.

Ukraines iron ore export up by 7% YoY in 10 months

According to data of the Ukraines state committee of statistics, Ukraine increased its iron ore export in October 2006 to 221,480 tons up by 13.7% as compared to September 2006 which resulted in increase in earning to $8.37 million up by 12.9% MoM.

As per the statistics, Ukraines export of iron ore during January to October 2006 increased to 1.097 million tonnes up by 7% YoY as compared to January to October 2005.

Sahavirya denies encroachment on peat swamp

Thai Sahaviriya Steel Group has denied allegations that its plant extension project would encroach upon a vast area of lush peat swamp in tambon Mae Ramphueng in Prachuap Khiri Khan's Bang Saphan district.

Mr Anuwat Chaikitivanich VP of the Sahaviriya Steel Group, said the company wanted to use only a tiny part of degraded Mae Ramphueng forest reserve, about 60 rai, which stands between the existing plant and a site for a new plant that will be set up on around 2,000 rai of land. The 60 rai plot of land is to serve as a road link from the existing plant to the new project. Mr Anuwat said ''We didn't encroach upon the swamp area as alleged by the villagers. We have asked for permission from the Forestry Department to apply for the use of 60 rai of forest land.

He said the company tried to minimize the use of forest land for environmental reasons and that the company is seeking permission from the Forestry Department for the right to legally use the forest area. Initially, the company had wanted to use around 1,297 rai of forest land, which also includes around 595 rai of mangrove forest, before coming up with the 60 rai proposal.