January, 14 2007
TATA Steel to reach 10 million tonnes in India by 2009-10
TATA Steel is set to achieve 7 million tonne out put by 2008-09 and 10 million tonnes by 2009-10 as against likely 5 million tonnes during 2006-07.
Dr T Mukherjee deputy MD of TATA while speaking to newspersons on the sidelines of a workshop of Institute for Steel Development & Growth on Steel in Construction said that TATA Steel is hopeful that its domestic steel output will go up to 7million tonnes by 2008-09 and 10 million tonnes by 2009-10 respectively as against the 5 million tonnes by the end of the current fiscal.
TATA Steel has reported 11% rise in saleable steel production for the first 9 months of the current fiscal as compared with the corresponding previous period.
JSPL to increase investment in Jharkhand
Jindal Steel and Power Ltd has now decided to scale up the capacity of its proposed steel plant at Singhbhum in Jharkhand from 5 million tonne to 6 million tonne, after recent acquisition of Bihar Sponge and Alloy Ltd plant near Patratu in Hazaribag district of Jharkahnd and also set up two power plants with a total production capacity of 2500 MW.
Mr Navin Jindal vice CMD of JSPL announced on that JSPL has decided to use the infrastructure of BASL plant for setting up the new steel plant Mr Jindal said that acquisition of BASL has been a huge advantage to the company as it can use the same infrastructure for the proposed steel plant, besides the 600 acres of land the company can make use of. He, however, pointed out the company would need an additional 2,500 acre of land for the 6 million tonne capacity steel plant.
Mr Navin Jindal that instead of looking at the problem of land acquisition from a negative point of view he believed that the problem can be sorted out amicably. He said Good compensation package and a comprehensive rehabilitation policy are the two main tools for overcoming the problem.
BSSL may setup steel plant in WB Report
ET has reported that Bhushan Steel and Strips Limited is considering to sign a MoU with West Bengal government to set up a 2 million tonne per annum steel plant in the state along with a 1,000 MW thermal power project by its subsidiary Bhushan Energy in the state.
Mr Neeraj Singal MD of BSSL told ET that We have identified the location for the projects and it will be near a coal pit head. Talks are also on for a captive coal block.
BSSL is already implementing an INR 5,000 crore steel project with capacity of producing 2.2 million tonne of steel in Orissa and the 1st phase of the project of 500,000 tonnes capacity will be completed by March 2007 and the whole project should be completed by 2009.
JSW Steels land requirement for WB project clear of farmland CM
It is reported that West Bengal government is cautious about lend for JSW Steels 10 million tonne plant at Siboni in the state after facing sever problems relating to land acquisition for TATA Motors plant at Singur and SEZ at Nandigram, where violent incidents have erupted in the recent past.
Mr Buddhadeb Bhattacharjee chief minister of WB said that JSW Steel's proposed plant is unlikely to face the flak over land acquisition like two other investments. He said that only just 90.60 acres of land in Salboni is farmland out of the 4877.40 acres that the JSW Steel requires and that around 4372 acres is already with the government and only few patches of farmland are with the farmers.
He said "I am aware that the Naxals have a presence in and around Salboni. I will tell the Party to stand there and tell them to get out of there. As for the 500 acres that is yet to be acquired, the Jindals can directly buy them from the farmers. We have information that the farmers are only too willing to give us the land as they realize the economic benefit that they would derive.
More companies interested in container train business
It is reported that 16 more companies, in addition to 14 firms which signed the concession pact with the Railways to operate containerized freight trains last week, have showing interest in operating container trains.
According to Rail Bhawan sources, a large number of players from retail, shipping and logistics segments, including Pantaloon, Birlas and Reliance Industries, have shown interest in the container train business that was opened to the private sector last year.
Under the scheme, private players are required to have an annual turnover or net worth of Rs 1 billion or more to qualify for a license and have to develop their own ICDs. Operating permission would be granted for 20 years initially, which can be extended by 10 years later.
4th ultra mega power project at Tilaiya to start by mid 2007
The ministry of power has asked the Power Finance Corporation to work out the timelines for request for qualification & request for participation for the 4th ultra mega power project in Tilaiya in Jharkahnd by the middle of the 2007. The power ministry has also requested the PFC to obtain the necessary environmental clearances for the project.
The first two of 4,000 MW each at Sasan in Madhya Pradesh and Mundra in Gujarat have already been awarded to Lanco and TATA Power respectively in December 2006. The 3rd UMPP at Krishnapatnam in Andhra Pradesh is scheduled to be awarded by March 2007.
HZL increases zinc prices
India's top zinc producer, Hindustan Zinc Ltd on Saturday raised zinc prices by Rs 700 a tonne or 0.4%, to INR 196,900 effective immediately.
However, the company has cut the price of lead by INR 1,100 a tonne or 1.3%, to INR 82,200 effective immediately.
Mr KB Dubey takes over as director project of NTPC
National Thermal Power Corporation Ltd has informed BSE that Mr KB Dubey has taken over as director projects of the company wef January 12th 2007.
Canada to see sever M&A activity in mining & energy in 2007
Canada's strength in the mining and energy sectors should keep it busy on the mergers and acquisitions front in 2007 and the total number of deals struck internationally this year is likely to surpass 2006 even if the amount for the deals falls short of last year's estimated US$173.6 billion performance.
Mr Peter Hatges of KPMG said that Canada is seen as a solid economy and a very good place to invest and got a stable economy, very good fiscal policy. Mr Hatges expects the total number of deals to surpass 2006, even if the overall value of the acquisitions falls short the number of mergers in 2006, which increased by 26 % from 2005
Canada logged its first deal of the year when Harris Steel Group Inc said on the first business day of 2007 that would be acquired by US based Nucor Corp for C$1.25 billion in cash.
North & South Korea to develop zinc mine
It is reported that North and South Korea would form a JV to develop 3 mines, including a large zinc mine, in North Korea under an agreement to develop the Norths natural resources entered during a meeting on economic cooperation in 2005, despite being technically at war after the 1950-53 conflict ended without a peace agreement.
As part of the agreement Korea Resources Corp will carry out feasibility and environmental studies on zinc and magnesite mines at Komdok in Hamgyong Province in the northeast of North Korea that holds an estimated 300 million tonnes of ore.
Under the JV proposal between Samcheolri and Kores there is also an agreement to mine graphite at Yongho with Kores providing machinery and equipment with annual sales of 9,000 to 10,000 tonnes of graphite to South Korea envisaged
Samcheolri Corp has a lead zinc ore processing complex in Komdok in Hamgyong Province, which has a current ore capacity of 15 million tonnes per year and the capability to produce 100,000 tonnes per year of zinc metal.
Two miners killed in West Virginia roof collapse
2miners were killed in West Virginia on Saturday when a roof collapsed in Alpha Natural Resources Incs Brooks Run mine in McDowell County of Roanoke in Virginia. The mine has been closed.
Ms Caryn Gresham a spokeswoman for the West Virginia Office of Miners' Health, Safety and Training said that "They were doing retreat mining. The practice involves removing pillars of coal that were first left as roof supports.
Federal Mining Safety and Health Administration have begun an investigation and are likely to take a few days.
Alpha's Brooks Run business unit produces coal from three underground mines and has a capacity to ship about 2.5 million tonnes a year.
Alpha has eight regional units that produce, process and sell steam and metallurgical coal. The units are supported by 44 underground mines, 25 surface mines and 11 preparation plants in Virginia, West Virginia, Kentucky and Pennsylvania as well as a highway construction business in West Virginia that produces coal.
Union at Canadian IOC calls for probe
CBC News reported that union representing workers at Iron Ore Company of Canadas Labrador mine is calling for an investigation after 5 diagnoses have been made within the last four months, about a possible link between cancer and their livelihood.
Mr George Kean president of the United Steelworkers local said that the recent diagnoses are enough to warrant professional scrutiny. He said "I don't know if these cancers are work related, but I want help from the government and from specialists to come in and investigate and decide the cause of the cancers, if they are work related, and make sure they get the benefits they are entitled to.
Mr Kean wants the Newfoundland and Labrador government to hire an industrial disease specialist to determine if the illnesses are work-related.
Officials with the Workplace, Health, Safety and Compensation Commission have said they are willing to meet with the Steelworkers union on the matter.
Ukraines pipe production in 2006 up by 14.1% YoY
Ukrainian pipe enterprises increased production of pipes from ferrous metals by 14.1% YoY against 2005 to 2.617 million tonnes in 2006.
Ukraines production in December totaled 0.204 million tonnes.
Pakistani rolling mills hit by increased global billet prices
Geo News has reported that at least 8 re rolling units in Karachi had to be shut since the billet could not be imported during the last seven months due to increase in its price that soared to $450 per tonne.
According to Pakistan Steel Re-rolling Mills Association sources, the billet cost them PKR 35000 after being imported at $450 per tonne, which is unacceptable to both importers and the consumers.
PSRMA demanded the government to put an end to 5% duty imposed on billet imports so that its import could be made possible after the decrease in its price by $10 in international market.
As per report, Pakistan imports 1.2 million tonnes of billet per year to feed rolling mills.
OMKs Chusovoy Works increases finished steel by 3.5% in 2006
It is reported that United Metallurgic Companys Chusovoy Steel Works produced 0.425 million tonne s of finished steel in 2006 up by 3.5% YoY as compared to 0.411 million tonnes in 2005. It produced 0.076 million tonnes of automobile springs in 2006 up by 19% YoY as compared to 0.064 million tonne sin 2005.
ChMZ' revenues from sales of its main products in 2005 had increased by 37% to more than RUB 12 billion by producing 0.064 million tonne of springs, 0.410 million tonnes of finished steel.
OMK is one of the Russias largest domestic producers of pipes, railway wheels and other metal products for power, transport and industrial companies. It comprises five large enterprises. The pipe division includes the Almetyevsk Pipe Plant and Vyksa Steel Works; the metallurgic division comprises the Chusovoy Steel Works, the Shchelkovo Steel Works, and Gubakha Coke. In 2005, OMK provided 17% of Russian pipe consumption, above 60% of Russian consumption of railway wheels and more than 70% of auto spring consumption.
Mr Hand may leave CVRD Inco
According to a report Mr Scott Hand is expected to step aside as the head of Toronto based CVRD Inco Ltd after it won control of Inco Ltd. He has privately indicated he wants to ease out of the job now that the shots are being called from Rio de Janeiro and his role in the company has shrunk dramatically. He is currently reviewing a plan that would see him serve as an adviser to the company.
In a recent interview, Mr. Hand declined to confirm or deny questions about his expected departure. He said "I'm not saying whether I'm leaving or not. Wait until the completion of the transition is done at the end of this month and wait to see what happens then.
Mr Roger Agnelli CEO of CVRD CEO at a press conference to celebrate the deal that gave CVRD ownership of Inco's operations said that CVRD was not looking for big changes at Inco's head office following the takeover. He had said "we would like to keep everybody there, working, improving the day to day business and the Brazilian iron ore giant was not looking for big changes at Inco's head office following the takeover. CVRD also promised not to lay off workers at Inco's mining operations for at least three years.
South African thermal coal trades at $49 FOB at glabalCoal
globalCOAL announced that an April loading panamax cargo of South African coal traded at $49 a tonne FOB Richards Bay on electronic trading platform globalCOAL. A March loading panamax of South African coal was offered at $50.25 a tonne without a bid against it. However there was a bid of just above $50.00 a tonne for a February loading handymax.
Earlier coal traders said that they had been offered an April loading South African panamax at $48.75 FOB and a March loading cargo at $49 FOB.
As per report at least 2 of the recent prompt cargoes of South African coal sold on globalCOAL have been split into 50 000 tonne handymax sized cargoes and sold to Indian traders.
Indian traders seeking prompt handymax cargoes of South African coal said that they expect to pay $74 CIF to $74 CIF, assuming freight of $24 from Richards Bay to India.
Alabamas coal production dips by 14%
Alabama coalmine production fell 14 % in 2006, after the Shoal Creek mine shutdown cost the state and Drummond Co almost 2 million tonnes. Department of Industrial Relations said that the state's 6 underground and 63 surface mines produced 19.7 million tons in the 12 months ended September 30th 2006.
The top producer for the second year running was the Pittsburgh & Midway mine in Fayette, which churned out 2.6 million tons. In 2005, the mine produced 3.5 million tons. Jim Walter Resources led all producers in 2006, mining 5.2 million tons from three mines in Tuscaloosa County. Russell Hubbard.
In 2005 Alabama coal mine, produced 22.5 million tonnes 8 underground and 53 surface. A big hit came from Shoal Creek, which produced 3.1 million tons in 2005. In 2006, the underground mine produced just 1 million, after methane ignitions shut the mine and Drummond Co chose to forego further production.
13 miners killed in coal mine blast in Shanxi
Xinhua reported that a gas blast killed 13 coal miners and injured nine in China's northern Shanxi province.
The explosion took place on Friday at Niuxinhui Coal Mine in Ningwu county of Shanxi province, when 30 miners were working underground. The accident killed 11 miners on the spot. Two others, badly injured, died on the way to hospital, while nine are still in medical care.
The legally registered coal mine was undertaking an expansion project approved by the provincial coal industry authorities.
The cause of accident is under investigation.
Ukrainian Casting to buy molding equipment from Omega
Interfax reported that UK's Omega will supply molding equipment for iron and steel blanks to the Ukrainian Casting Company which is controlled by the Ukrainian Industrial Energy Company, after it won the contract in a tender that drew 1 Ukrainian and 4 foreign bidders.
The equipment will have capacity for up to 15,000 tonnes of castings per year. The productivity of the new line will be 30% higher than previously planned, without a price increase. Ukrainian Casting previously set aside EUR 2 million for new molding equipment and expected to buy a line with capacity of 12,000 tonnes, to be launched in August.
The company also said Ukrainian Casting's capacity would expand from 3,000 tonnes to 20,000 tonnes per year following modernization and the launch of the new molding equipment and three tonne induction furnaces from EGES that are supposed to come on line in the first quarter of 2007
Mr Anatoly president of UPEK said that an essentially unique metallurgical company with annual capacity for 20,000 tonnes of castings is being created in Kharkiv and new equipment will enable Ukrainian Casting Co. to produce high precision and high strength cast blanks from iron and steel that is used in the automotive industry and machine building
Ukrainian Casting was formed in 2004 in the course of the restructuring of the Kharkiv Machinebuilding Plant. UPEK, which was created in 1995, also manages the Kharkiv Bearings Plant, electrical engineering plant Ukrelektromash, KharVest, Lozovo Forging-Mechanics Plant, the Tinyakov garments factory and Faktorial Bank.
Iron ore could become source of income for Perak
Bernama reported that the mining of iron ore could become a new source of income for Perak, replacing tin mining which traditionally has been a major source of income for the state.
Mr Tajol Rosli said the state government had received many applications from companies keen on carrying out iron ore mining. He, however, declined to give details of the areas in Perak said to have iron ore deposits, explaining that it would be unfair to the companies that had carried out the relevant research.
Mr Rosli said "The Company carried out their respective studies using satellite and have the satellite images of the said sites. Therefore, it will not be fair for me to reveal the details of the areas as they have paid for those satellite images after an Exco meeting and the interested companies would not have made their applications if there were no prospects.
He said the state government is prepared to give approval if the land areas being requested for mining are not close to a river or residential area and that the company would have to deal with the relevant landowner directly. Mr Rosli said the state government would also give mining approval to only companies with the capabilities to ensure that the licenses given are not used for other activities such as buying a hilly area for sale later.
He said From now till February 28, we would be holding meetings. The operators, who are given approvals, would be able to carry on their operations until the end of this year, while those who don't receive the approvals, would have to stop.
Volchansky Ugol mines 6% more coal in 2006
Interfax reported that Sverdlovsk region based Volchansky Ugol has increased coal production by 1.31 million tonnes in 2006 as compared to 2005. VU produced 104,000 tonnes of coal in December 2006 up by 27.8% as compared to December 2005.
Ms Larisa Pavlovich GM of VU did not give the company's production targets for 2007 but said that Supply contracts have not been finalized yet she will depend on who will buy our coal and still continuing to sign contracts.
Volchansky Ugol had increased coal production by 13% YoY to 1.235 million tonnes in 2005. It mines coal for TGC-9's Bogoslovsky power plant and WGC-5's Reftinskaya power plant.
Ukraines SPF funds $13 million to state from Krivoi Rogs 0.33% sale
It is reported that the Ukrainian State Property Fund paid UAH 67,357,746.05 (Approximately $13 million) to the general fund of the state budget out Of which over UAH 66 million (98.3% of the general sum) were transferred from selling 0.33% of the parcel of the public joint stock company "Mittal Steel Krivoi Rog".
At the first sale of 93.02% of the parcel of shares of the KryvorizhStal to the "Investment-Metallurgical Union" in 2004 the cost of one share was UAH 1.18 comparing to UAH 6.7 per share in 2005 to Mittal Steel.
Zvezdochka makes largest ship propeller in Russian history
Barents Observer has reported that the largest screw propeller in Russian shipbuilding history with the diameter of 8.2 meter was manufactured at the defense shipyard Zvezdochka in the city of Severodvinsk of Russia.
South Korean shipbuilding company Hendai Heavy Industrial gave the order to manufacture this prefabricated mover from stainless steel of the weight of about 50 tonnes. It is intended for an arctic tanker under construction to be operated by the Russian company Primorje Sea Shipping Company.
Asha Metallurgical Plants production in 2006 up by 7.5% YoY
FIS reported that Asha Metallurgical Plant grew by 7.5% to RUR7.42 billion. Steel production grew by 5.7% to 0.648 million tonnes. Its roll production rose by 8.3% to 0.467 Million tonnes as compared with 2005 gross output of commodity products
SMS 2006 order books driven by China, India and Russia
It is reported that German SMS group has expanded its order intake to more than EUR 3.2 billion due to vigorous global performance in the steel industry where investment is booming.
The most important sales regions for SMS remained China, Russia and India. But other countries embarking on industrialization or an extensive modernization phase also contributed to the increased order volume. Despite the excellent business situation over the past year, industry in the traditional steel regions of North America, Western Europe and Japan invested merely at a normal rate.
Yet the order markets served by the SMS group, such as the hardening and forging industry, the nonferrous metal producing industry and the plastics processing industry, have also developed well. And it was the first time in years that the order intake from Germany, at some 13% of overall order intake, indicated a modest recovery on the German domestic market.
OMKs ChMz completes gas cleaning facility construction
FIS reported that United Metallurgic Companys Chusovoy Steel Works Chusovoi has completed the construction of gas cleaning facilities behind the converters and mixer of the duplex unit by investing over RUR250 million into the project.
