JSW Steel Ltd announced that, as a part of its strategy to expand organically by setting up incremental capacities in other parts of India in addition to existing steel unit at Karnataka, its has entered into an agreement with the West Bengal Industrial Development Corporation Ltd, West Bengal Mineral Development and Trading Corporation Ltd for setting up a 10 million tonnes per annum steel plant at Godapisal in West Midnapur district in the State of West Bengal in suitable phases at an estimated cost of INR 35,000 crores within 12 years from the date of execution of development agreement.

This development agreement includes
1. Incorporating a special purpose JV with WBIDC, WBMDTC with an initial paid up and authorized capital of Rs 100 crores to be held 89% by JSW group and balance by WBIDC and WBMDTC, to be increased at a later stage based on the financing structure.
2. The shareholders agreement will be executed within 6 months from the date of execution of Development Agreement.
3. Subject to achieving financial closure and provision of raw material, land and utilities linkages, JV Company is obliged to complete the phase I of 3 million tonnes per annum in 4 years and expand to 10 million tonnes per annum in suitable phases in 12 years.
4. Government of West Bengal is committed to provide support, cooperation in acquiring land, coal linkages, water, infrastructure facilities, construction power, statutory clearances, transportation linkages etc. in a time bound manner.
5. The JV's obligations also include providing rehabilitation and resettlement package through a series of corporate social responsibility initiatives.

A pre feasibility report within 6 months followed by a detailed project report within 12 months will have to be prepared and finalized covering all the aspects of project including land, raw material, utilities, raw materials linkages, project schedules etc.

It is reported that Coal India Ltd has decided to supply only washed coal to all categories of consumers other than pithead power plants, switch to a pricing system based on gross calorific value from the useful heat value method followed at present with effect from April 1st 2007 increase underground production and step up production through captive mining route.

Mr Dasari Narayan Rao union minister of state for coal, after a meeting with the union coal secretary, chairman of CIL and heads of its subsidiaries and functional directors, however assured that consumer prices would not be affected by these decisions.

Mr Rao said the Coal Vision 2025 document sees an investment potential of over Rs 8000 crore in coal beneficiation by 2025. He said "CIL will set up washeries under the build and operate concept in partnership with private companies with core competence in coal washing. CIL and its subsidiaries would provide the funding and the land. Currently, washed coal accounts for only 56 million tonne out of CIL's total supplies, barring those to pit head power plants.

Another important decision was to step up underground production, which has been declining steadily since the nationalization of coal mines to touch 45 million tonne in 2005-6. Dr Rao said "Our target was to step up underground production to 54 million tonne by 2011-12 and now we have decided to raise this to 75 million tonne by 2011-12."

Coal ministry has put 38 blocks for allocation to independent power producers and non power sector companies, as a part of 81 blocks offered for captive mining around a month and a half ago. Mr Rao added that The present production from captive mines adds up to only 15 million tonne a year, but the aim is to get 105 million tonne by 2011-12.

Hindustan Zinc Ltd has announced the following unaudited results for the quarter ended December 31st 2006

HZL has posted a net profit of INR 13350 million for the quarter ended December 31st 2006 as compared to INR 3290 million for the quarter ended December 31st 2005. Total Income has increased from INR 9320 million for the quarter ended December 31st 2005 to INR 25440 million for the quarter ended December 31st 2006.

Exim News Service reported that Kandla Port Trust has issued the requests for qualification to various private players and is likely to invite bids for the construction of four new post Panamax size multi purpose dry cargo berths at an estimated investment of INR 443 crore. Mr A Janardhana Rao chairman of KPT recently announced that "We are going to sign the concession agreement with the developers by February 2007."

As per reports, 11 firms have short listed from 40 odd applicants. The short listed firms include TM International Logistics India Adani Exports, L&T Infrastructure Development Projects, PSL, Man Industries, ABG Heavy Industries, Indian Molasses Company, Sical Logistics, Alpha Vinimay, United Liner Agencies and Gautam Freight Pvt Ltd. Most of these companies have formed bidding consortiums. One consortium would be allowed to develop only one berth.

Kandla Port currently has 11 dry cargo berths, 6 jetties for liquid cargo and 2 single buoy mooring systems at the offshore oil terminal at Vadinar. The existing 11 dry cargo berths now handle close to 14 million tonnes of cargo. The berths numbering 13, 14, 15 and 16 would handle bulk and break bulk cargo on an average output rate of 6,000 tonnes per berth per day and increase the capacity by around 8 million tonnes per annum.

It is reported that central government is all set to prepare a long term plan for creating a gas pipeline network in consultation with the Petroleum & Natural Gas Regulatory Act Board with a view to facilitate the creation of National Gas Grid and growth in the development of city or local natural gas distribution networks. No gas pipeline or the city or local gas distribution network will be laid, built, operated or expanded without authorization by the board.

The prospective plan will take into account projected availability of gas & LNG from different sources. The policy will provide open access for all players to the pipeline network on a non discriminatory basis and promote competition among entities, avoiding any abuse of the dominant position by any entity and secure the consumer interest in terms of gas availability on reasonable tariff.

The central government has been making all efforts to invite and facilitate FDI by permitting 100% in laying a natural gas pipeline under the automatic approval route.

It is reported that NTPC Ltd is considering bidding for some offshore blocks, out of 36 blocks being offered by Australia using a work program bidding system and award exploration permits for an initial term of 6 years.

As per reports, NTPC plans to undertake an exploratory study with Michigan based Oil Ex, which is involved in consulting, drilling, well management and site restoration. As NTPC has no technical capability it would rope in other entities with experience in the petroleum sector to bid jointly.

NTPCs move is driven by the constraints it is facing in gas procurement for its various gas based power projects, including the ones in Kayamkulam, Kawas and Gandhar and dispute with Reliance Industries for supply of gas from the Krishna-Godavari basin.

According to the Australian government website, the country is under explored with just 8,000 wells having being drilled out of which 4,000 are exploratory wells. Australia produces 9% of the worlds LNG production of 82 million tonne.

The Maharashtra cabinet has given its approval for the generation capacity addition of 2,000MW by Maharashtra State Power Development Corporation. The projects will come at Parli 250 MW, Paras 250 MW, Khaparkheda 500 MW and Bhusawal 1,000 MW with a total investment of Rs.8,000 crore.

The contract for boilers, turbines and generators will be placed to Bharat Heavy Electricals for these projects through negotiation route.

The coal production from the Mahanadi coalfields allotted by the centre to Maharashtra and Gujarat will help partially meet coal requirement for these upcoming projects. Besides, the company will also seek coal linkage from the coal ministry

Exim News Service has reported that Adani Petronet Port Private Limited has signed an agreement with Petronet LNG Limited to develop an INR 1,100 crore cargo terminal at Dahej port. It is expected to be commissioned by early 2010.

The proposed terminal is expected to have the capacity to anchor Panamax vessels, and modern handling capabilities that will give a boost to the industrial development of central and south Gujarat, as this may well be the only port between Ahmedabad and Vapi handling bulk cargo.

POSCO announced that its net profit for the fourth quarter of 2006 climbed sharply to KRW936 billion up by 157% YoY as compared to KRW364 billion in October December 2005 quarter. POSCOs operating profit increased by 0.8% on year to KRW1.097 trillion, from KRW1.088 trillion and sales were up by 4% on year at KRW5.409 trillion from KRW5.203 trillion.

A company spokeswoman said "In the fourth quarter of last year there were no massive one time losses to damp POSCO's profit. In the year earlier period, Posco spent KRW330 billion on severance payments as part of cost-cutting efforts."

POSCO said its full year net profit for 2006 fell by 20% to KRW3.207 trillion from KRW3.995 trillion in the year before. Operating profit slumped by 34% in 2006 to KRW3.892 trillion from KRW5.912 trillion in 2005 and sales were down by 7.6% in 2006 at KRW20.043 trillion, from KRW21.695 trillion in 2005.

It said "Compared with the year earlier period, lower steel prices and higher raw materials prices on average weighed on the bottom line last year.

Baoshan Iron & Steel Co Ltd in a statement filed with the Shanghai Stock Exchange that it does not have any current plans to list overseas, contrary to news reports have said that the company is currently preparing to list on the New York bourse. The company said it will consider listing overseas if there is an appropriate opportunity, but it has no such plans at present.

The Shanghai Securities Journal reported that BaoSteel has hired accounting and law firms to prepare for its listing on the NYSE in November, with some investment banks estimating that BaoSteel might choose to list in New York and Hong Kong at the same time.

The Sumitomo Corporation of Japan has acquired a 20% stake in Oresteel Investments Limited from Old Mutual Life Assurance Company of South Africa for approximately R500 million. Following the transaction, the shareholders of Oresteel will be the Sacco family with 60%, Old Mutual with 20% and Sumitomo 20%.

Oresteel holds a 52.28% controlling interest in South Africa's Assore which is engaged in ventures involving base minerals and metals. Assore, through its various joint venture entities and subsidiary companies, is involved in the mining of manganese, iron and chrome ores together with other industrial minerals and the manufacture of manganese and chrome alloys.

The investment in effect gives Japan's 3rd biggest trading company a 6% stake in Assmang, which plans to produce 16 million tonnes a year of iron ore by 2015 at its new Khumani iron ore mine. Khumani will start production in 2008. A Sumitomo spokesman said the company aims to sell 60% of the Khumani production to steel mills in Japan, China and South Korea.

Chinas State Administration of Work Safety announced that coal mine accidents in China during 2006 claimed fewer lives. It said that in 2,945 coalmine accidents in 2006, 4,746 people were killed down by 20% as compared to 2005 although coal production increased by 8.1% to more than 2.3 billion tonnes.

The administration attributed the significant drop in the number of deaths to a series of campaigns against accident prone small mines and its efforts to improve safety in mines.

Albidon Limited announced that the European Investment Bank and Barclays Capital have been mandated to act as joint Lead Arrangers in providing finance of up to $60 million for the Munali Nickel Project, subject to completion of due diligence and detailed documentation which are expected to be finalized before mid 2007. Initial concentrate production and subsequent project ramp up is targeted to commence in mid 2008.

Albidon said that the financing will provide the remaining funding required for development of Munali, including construction costs, working capital requirements and ensure Albidon retains sufficient funds to continue exploration and business development activities. The company said a positive Bankable Feasibility Study was completed in July 2006 and site works commenced in September 2006 following Government approvals.

Albidon said following completion of the project financing mandates, the implementation of Munali will continue to accelerate, with a focus on the following key areas of activity.
1. Site preparation including construction of the camp
2. Mobilization of the mining fleet
3. Excavation of the boxcut for the decline
4. Construction of access roads

Albidons 100% owned Munali Nickel Project is located approximately 60 kilometers south of Zambia's capital city Lusaka. The project area comprises the Enterprise Deposit and a number of other nickel prospects in the Munali Intrusion, the most advanced of which is the Voyager prospect along strike to the north of Enterprise.

The Australian junior has already raised $35 million via equity and has signed an off take cum financing package with Chinas Jinchuan, which will raise another $25 million. The new $60 million package will complete the funding requirements for Munali.

On the first day of coal order collecting conference, a total of 557 million tonnes contract coal was filed, according to source of China Coal Transportation & Sale Society, in which 479 million tonnes is subordinate to transportation under the control of NDRC, representing 64.9% of all cross province coal coordinating volume. Making record of the coal orders is set to be concluded by 24 o'clock January 13th in principle, the society said, so as to let the railway and communication departments better arrange transportation force.

Different from past ages, this year's conference only serves as a platform to link talks of the coal supplier and demanders to coal transport planning. Based on the document earlier issued by NDRC, coal suppliers and consumers should fix on the price by thorough negotiation between them in light of market conditions and then file the contracts for allocation of transportation.

Non electrical coal prices have almost nailed down, for that used in metallurgy, chemical fertilizer, coking etc with a majority raised by 3% to 5%, an equivalent of RMB10 per tonne to RMB30 per tonne, while price of some electrical coal contracts has yet to be set. Yet, around 70% of the electrical coal contracts have been inked, disclosed by authorities of the electricity industry.

Some power plants complain suppliers quote coal price too high and want to wait to see, whereas some others have compromised.

According to research director of the coal transportation and sale society, coal supply and demand will hold generally balanced this year with the price edges up to some degree.

(Sourced from MySteel.net)

The Nikkei, without citing sources reported that Mitsui & Co Ltd plans to sell its entire 1.7% interest in Tokyo Steel Manufacturing Co Ltd and that Mitsui is also considering selling part or its entire 1.8% stake in Toyohira Steel Corp.

The report said that this move is a part of a review intended to bring about the most efficient use of its capital and human resources.

Russian economics ministry said that Russia's gross domestic product grew by 6.8% YoY in January to November 2006, in line with the ministry's projected figure of 6.8% for the whole of 2006. In January to November 2005, Russia's GDP had grown by 6.2%.

The ministry said that industrial output expanded 4.1% YoY during the period, while inflation increased by 8.2% against 10% in the first eleven months of 2005.

The economics ministry projects GDP growth at 6.2% and inflation at 6.5% to 8% in 2007.

According to Mittal Steel US, its Indiana Harbor Works and Burns Harbor can expect a total of $26 million in new construction and upgrades at the two plants this year. Both projects are expected to begin and finish sometime this year.

Mittal Steel US plans to spend $15 million to add a temper mill to its 1968 built galvanize line at Indiana Harbor for improving quality and speed up the delivery time for galvanized steel.

Mittal Steel US will also spend $11 million to upgrade the annealing furnaces at Burns Harbor for producing the lightweight, high strength steel is used in the roll cages and other safety features in the auto industry.

Improvements at Indiana Harbor and Burns Harbor are part of $58 million in construction projects Mittal has outlined for 2007 for its plants in the United States.

It reported that Brazilian integrated steelmaker CSN expects the feasibility study for a 4.5 million tonnes per year slab project in Rio de Janeiro state to wrap up this month, delayed by a month against earlier expectation of December end. The environmental permit for the slab unit is expected by April.

CSN signed a partnership with Chinese steelmaker Baosteel for a feasibility and basic engineering study for the project at Itaguacity, under which BaoSteel could have a 25% stake in the plant.

Xinhua News Agency reported that 7 miners have been trapped in a flooded coal mine for about 19 hours in northwest China's Liaoning Province. As per report, 2 collieries, Cuijingzhu and Gaosihai, in Benxi Autonomous County of the province, were illegally operating when the flood happened around 8PM yesterday.

According to an official with the local coal mine safety supervision administration the local government closed the two collieries last Friday as they were unqualified due to low yearly outputs, but they resumed operation secretly soon after and the workers at Cuijingzhu dug a well to a depth that is forbidden by the local government which might be the main cause of the flood.

Workers with the Cuijingzhu Colliery escaped because they noticed the flooding right away. However, their seven counterparts in the neighboring Gaosihai Colliery were caught by surprise by the flood.

The department of fuel and energy complex of the Kemerovo region's administration recapped the final results of coal production in Kuzbass in 2006. Adjusted data indicate that Kuzbass mines and pits extracted 174.3 million tons of coal in 2006, 7.2 million tons as more as compared to 2005.

This is the volume achieved for the first time over the 100 year history of coal production in the Kuznetsk coal basin and with this the share of the coal province in the Russian coal production grew from 56% to 57%.

Mr Victor Yushchenko president of Ukraine during his recent visit to Luhansk region, inspected Alchevsk Steel Mill. Mr Serhiy Taruta chairman of the Industrial Union of Donbass outlined a plan to reequip the mill to him and Mr Taras Shevchenko GD of Alchevsk showed the President the steel plant.

As per report, Alchevsk plans to replace outdated machines, introduce new technologies, open new departments, cut production costs and also implement large scale environmental and social projects under 1 7 year program launched in 2003. The Alchevsk Steel Mill is expected to double its output by 2009.

Ukraines coal ministry announced that Ukraines coal production in 2006 increased to 80.257 million tonnes up by 2.8% YoY as compared to 2005 and that 2006 coal production target was overshot by 8.4% or 6.236 million tonnes.

However, coking coal production fell by 8.2% YoY to 30.145 million tonnes and power generating coal output rose 10.9% YoY to 50.112 million tonnes.

Russian coal miner Raspadskaya Coal Company extracted 10.612 million tonne of coal in 2006 up by 9% YoY as compared to 2005. The growth was prompted by the resumed production process and steady operation of consolidated assets including MUK-96 and Raspadsky pit.

The coal concentrate sales in 2006 also rose by 16% to 6.548 million tonnes from 5.631 million tonnes in 2005.

Raspadskaya plans to increase the output to 12.8 million tonnes in 2007.

Raspadskaya covers the group of entities of a single regional coal complex in Kemerovsky region.

United States Steel Corporation announced today that Mr James T Volanski has been appointed GM environmental affairs replacing Mr J David Moniot, who has elected to retire after 36 years of service to the company.

Mr Volanski will be responsible for overseeing US Steel's environmental efforts in the United States as well as at its operations in Slovakia and Serbia. The appointment was effective January 1st 2007.

Mr John P Surma chairman & CEO of US Steel said "Safeguarding the environment is one of our company's core values. Dave's expertise in environmental affairs was recognized throughout our industry and his efforts during his career helped our company become known as a leading proponent of environmental stewardship among steelmakers around the world. Jim's experience in a variety of environmental disciplines and his proven record of effective management will be key to our company's ongoing efforts to maintain our environmental leadership position.

The European Commission has extended its review of plans by Germany's Remondis, recycling company Cronimet and Italian steel maker Alfa Acciai to buy TSR Group. Germany requested a partial referral of the review, and the deadline was extended from January 23 to February 6.