SAIL bags BML Munjal award for excellence

Steel Authority of India Ltd has been honored with the BML Munjal Award for Excellence in Learning & Development for the year 2006 in the public sector category. The award recognizes the significant turnaround brought about in the working of SAIL in its productivity and profitability over the last few years in general and the significant efforts made in the year 2006 in adding value to its business processes through developing human resources competency.

Mr SK Roongta chairman of SAIL received the award from Mr Praful Patel union minister for civil aviation at the Mindmine Summit 2007 titled Imagining Investing Inventing: The Global Indian Manager organized last week.

Mr Praful Patel while conferring the award praised Mr Roongtas leadership in taking SAIL ahead of others players by charting a well thought strategy initiating changes with which SAIL will be bale to maintain its position of a leader in Indian steel sector in coming years.

The citation accompanying the award described as significant SAIL's effort to put in place a useful learning and development practice called learning from each other. The high degree of commitment shown by the company in the development and welfare of the communities in which are ensconced its plants and mining efforts, are an example of what corporate enterprises can do to give richer returns to all stakeholders. While doing all this, to keep continuously enhancing its profitability, is a result of many factors, including its focus at multi skilling and people development.

BL Munjal Award was instituted last year by the Hero Mindmine Institute, a part of the Hero group of industries. The jury for this year's BML Munjal Awards for Excellence in Learning & Development was headed by Mr Deepak Parekh chairman of HDFC and comprised eminent professionals in various fields.

Mr LN Mittal for restriction of high grade iron ore export

It is reported that Mr LN Mittal president & CEO of Arcelor Mittal said that India should restrict export of iron ore but allow companies to sell lower quality ore overseas.

Mr LN Mittal told a group of Indian journalists in Luxemburg last week that "There is plenty of iron ore in India but we should restrict export growth of higher Fe content ore and allow ore containing lower Fe.

Arcelor Mittal has signed 2 MoU with government of Orissa and Jharkhand for setting up 12 million tonne steel plant in each state and the development of these projects depend mainly on allocation of iron ore reserves.

TATA Steel's Kalinganagar project on track - Dr Irani

BS reported that TATA Steel is confident of going ahead with the setting up of the 6 million tonne steel plant at Kalinganagar in Orissa shortly despite protests from political and social activists over acquiring land required for the plant.

Dr JJ Irani director of TATA Sons told BS that orders for procuring 25% of the equipments for setting up the steel plant have already been placed. He told "It is now for the government to hand over mines for the supply of ores to the plant. The process of acquiring the land for the project is over and we are confident of starting work as soon we get the required clearances from the government.

CIL to start hunt for coal blocks overseas again

Coal India Ltds subsidiary of for overseas ventures Coal Videsh Limited has again initiated the process for overseas coal blocks acquisitions in Australia and Canada actively from February 2007.

Mr Partha S Bhattacharya CMD of CIL told a news agency that a team from CVL that will be headed by a director of CIL will visit Australia and Canada within the current fiscal to find suitable opportunities in these countries.

He said "The team will visit on invitation of invest Australia, a trade promotion body. Australia visit is slated in February and Canada in March. The aim of the team would be to find opportunities for acquisition of coal blocks and discuss options of business models CIL can adopt.

Soon after formation of CVL, it had commenced some activity for acquiring overseas coal equity but before anything could begin, the coal ministry had asked CIL to go slow on overseas ventures and concentrate on domestic production.

Kalinga Nagar agitators relent to start talks with Orissa government

It is reported that the agitating tribal of Kalinga Nagar in Jaipur district of Orissa have finally offered to hold dialogue with the state government to discuss a solution for the prevailing situation where they have put up road blocks and are not allowing any progress of the steel projects.

Mr Rabindra Jarika secretary of Bisthapan Virodhi Jan Manch vide his letter to Mr Naveen Patnaik chief minister expressed willingness to hold meaningful and sincere discussions that can lead to an appropriate settlement with the government at the highest political level but warned that the government should refrain from use of force to put an end over the one year old anti displacement agitation.

This move has come 9 days after the Orissa High Court directed the state government to remove the year long blockade on Daitari-Paradip Expressway in Kalinga Nagar, where 13 tribals were killed in police firing on 2 January last year while opposing construction of a boundary wall for the proposed 6 million tonne capacity steel mill project of TATA Steel.

Pipeline projects likely to get infrastructure status

As per reports, pipe line projects in India are likely to get the infrastructure status from the government in the upcoming budget.

Mr Murli Deora petroleum minister in his address on the occasion of while dedicating Indian Oil Corporation's Panipat Refinery Expansion Project to the nation appealed to the finance minister to consider the request of oil industry to grant the infrastructure status to the gas pipelines so as to create conducive environment for rapid growth of piped natural gas supply to the major cities in India as well as supply of fuel to major industrial centers.

Mr P Chidambaram finance minters assured that he would consider the Petroleum and Natural Gas Ministry's request of granting infrastructure status to pipeline projects in the country. Mr Chidambaram pointed out that pipe line activity is as important as roads and rail lines.

Roads and railways have already been granted infrastructure status, entitling tax holiday to the entities operating in these sectors.

3rd Indian Steel and Steelmaking Raw Materials conference

Metal Bulletin in conjunction with MetalJunction is organizing 3rd Indian Steel and Steelmaking Raw Materials on 14th to 16th February 2007 at New Delhi in India.

With Indias position as the worlds 8th largest steel producing country it is increasingly being talked of as the next China. Crude steel output in India is forecast to increase robustly, rising by 14% by the end of 2006, and a further 8% in 2007 to reach an impressive 48 million tonnes. With a long-term goal of raising crude steel production to 100 million tonne per year by 2020, India is attracting ever more attention and it hot on the heels of China.

Indias domestic demand for steel is being led by strong industrial and manufacturing growth and increased economic activity. India is now at a point where it is likely to accelerate and take off as a global sourcing hub for steel.

Access to significant reserves of high quality iron ore and cheap labor costs gives India the capacity to increase steel production and the close proximity of the very large Asian market and growing domestic demand provides a major incentive for developing its steel industry.

Indias National Steel Policy has set a target of 60 million tonnes of steel production by 2010 and to further increase it to a level of 100 million tonnes by 2018. Indias major steel producers are planning to expand their capacities in tune with the National Steel Policy formulations.

Bangladeshs political scenario may delay TATAs investment plans

TATA group is interested in resuming talks for its $3 billion investment plans for setting up a steel mill, power plant & fertilizer plant in Bangladesh once a new government is in place in Dhaka, after the negotiations broke off in February last year over the price of natural gas to be used in the project.

Mr Alan Rosling ED of TATA Sons said "We have suspended further development on the project. Still in principle we would like to pursue but the project has to make economic sense. When there is somebody who would like to talk to us they know where we are."

Uncertainty now hangs over when any new talks may begin as elections due to be held on January 22nd 2007 have been postponed after a state of emergency was imposed for the first time in 30 years and the president quit as head of the interim government.

TATAs investment plan includes a steel plant with an annual production capacity of 2.4 million tonnes, a urea factory with a 1 million tonne capacity, a 500 MW coal fired power plant and a 1,000MW gas fired power plant.

Essar to invest INR 10,500 crores in Hazira

Essar Group announced last week that it will invest INR 10,500 crore in a Special Economic Zone at Hazira and augment the steel manufacturing capacity to 9 million tonnes besides expanding the Vadinar refinery. Mr Shashi Ruia chairman of Essar Group said "Our investments in the SEZ at Hazira will be over INR 10,500 crore."

Mr Shashi Ruia said that the group has been approached by major automobile groups like Nissan and component manufacturers like Manineto to set up facilities in its Hazira SEZ and international petrochemical giants had evinced interest for setting up base in its SEZ at Jamnagar.

He said that the group would build a similar SEZ in Vadinar and also expand and diversify the petroleum refinery. Mr Ruia said that the refining capacity will go up to 14 million tonnes soon and further scaled up to 32 million tonnes in a few years. The group last year commissioned a 10.5 million tonne refinery at Vadinar.

SAIL & DVCs JV BSPC to expand capacity by November

Projects Today recently reported that Bokaro Power Supply Company is expected to complete its coal based power augmentation project by November 2007 and that about 30% project work was completed.

BPSC, with an investment of INR 350 crore will enable Bokaro power plant capacity to 338 MW from the existing 302 MW. Alstom Projects bagged the order worth INR 208 crore for supply of boiler turbine package on turnkey basis.

BPSC is a 50:50 JV between Steel Authority of India Limited and Damodar Valley Corporation. BSPC is also intending to set up a Greenfield 2x250 MW coal based power plant at Bokaro.

CCEA approves Rampur hydel project in Himachal

Indias Cabinet Committee on Economic Affairs last week has approved for the setting up of 412 MW Rampur Hydroelectric project in Himachal Pradesh by Satluj Jal Vidyut Nigam Ltd at an estimated cost of INR 2,047 crore.

The setting up of the project would reduce shortages in the northern region and benefits are expected by the year 2011-2012.

KMP announces financial closure for HSIDC road project

KMP Expressways Ltd executing the INR 1,915 crore Kundli-Manesar-Palwal expressway has announced that it has achieved the financial closure for the project. The work on the project has already begun and is scheduled for completion by July 2009.

Out of the total cost of Rs 1,915 crore, the SPV has tied up a debt of Rs 1,149 crore, through a consortium of 12 banks and financial institutions including SBI and IIFCL, led by IDBI Ltd. The arrangers for the debt are SBI Capital Markets Ltd and IDBI Ltd.

The project has been awarded to KPM Expressways by the Haryana State Industrial and Infrastructural Development Corporation. It envisages construction of 135.6 kilometer of road on BOT basis. The concessionaire would operate the toll road for 23 years and 9 months including the period of construction of about 3 years.

KMP Expressways is a 67:33 JV between DS Constructions and the UK based Apollo Enterprises Ltd.

CVRD settles 2007 pellet prices with Lucchini

World's largest iron ore producer Companhia Vale do Rio Doce has concluded the blast furnace pellet price negotiations for 2007 with Italian steelmaker Lucchini SpA following the price settlement in Europe.

As an outcome of these negotiations with Lucchini, the blast furnace pellet prices Fob Tubar and Ponta da Madeira increased by 5.28% relatively to the 2006 reference prices. Therefore, the new reference prices, on a metric ton basis, are $ 1.1796 per Fe unit for the Tubar pellets and $ 1.2108 per Fe unit for the S Luis pellets Fob Ponta da Madeira.

Evraz completes tender offer for shares of Oregon Steel

Evraz Group SA announced that the cash tender offer by its wholly owned subsidiary Oscar Acquisition Merger Sub Inc to purchase outstanding shares of common stock, including the associated preferred stock purchase rights, of Oregon Steel Mills Inc has been successfully completed.

As per release, Evraz and Oscar Acquisition Merger Sub Inc have been advised by Mellon Investor Services LLC, the depositary for the tender offer, that as of the expiration of the offer at 5PM New York City time on January 12, 2007, stockholders of Oregon Steel had tendered into the tender offer 32,784,081 shares of Oregon Steel common stock, including 2,012,151 shares of common stock delivered pursuant to notices of guaranteed delivery, representing approximately 91.5% of the outstanding shares of common stock of Oregon Steel.

The release adds that Evraz has accepted for payment all shares of Oregon Steel common stock that were validly tendered during the offer period.

In accordance with the previously announced merger agreement, Evraz now intends to effect a short-form merger. Pursuant to the merger agreement, each share of Oregon Steel common stock not accepted for payment in the tender offer, other than those as to which holders exercise dissenters' rights and those held by Evraz or Oregon Steel or their respective subsidiaries, will be converted in the merger into the right to receive $63.25 in cash, without interest and less any required withholding taxes. This is the same price per share paid during the tender offer. Evraz intends to complete the short-form merger in the next several days.

TATA Steel likely announce improved offer for Corus Report

As per a report in British media, an improved offer from TATA Steel for Corus is likely to be announced soon. The Observer, citing unnamed sources said that the stock market is anticipating a new proposal from TATA Steel that would trump the 5.9 billion pound offer from Brazil's CSN.

The report cited unnamed sources as saying a new bid was possible this week, although under a timetable set by the UK Takeover Panel, TATA Steel have time till the end of January to decide. The paper cited sources close to Corus as saying they expected a further approach from Tata, but it was unclear whether it would come this week or next.

The report said that "Some observers believe that Mr Ratan Tata is preparing to increase his offer to 550 pence a share, well above the 515 pence bid from CSN chairman Mr Benjamin Steinbruch." It added that TATA's advisers are working to finalize a fresh bid, but the decision will rest with Mr Ratan Tata himself.

Corus shares have been trading much higher than CSN's offer indicating that the market expects a fresh approach. The shares closed four pence higher at 540 pence on Friday.

TATA Steel had initially offered 455 pence a share for Corus and raised it to 500 pence but was later outbid by CSN with an offer of 515 pence per share.

CITIC Pacific joins race for Cape Lambert iron ore mine

It is reported that HK based CITIC Pacific has joined the race for Cape Lambert Iron's magnetite project on the Pilbara coast. Citic is the third major Chinese group eyeing the project, joining pipe maker Xingxing Iron Pipes and Beijing controlled SinoSteel as prospective partners.

Mr Ian Burston chairman of Cape Lambert confirmed that Citic would meet the company to discuss the massive project. Mr Burston however said that it was too early to comment on the nature of Citic's interest.

Cape Lambert has previously indicated it is in no hurry to lock in any deal with a major partner until it has better understanding of the true potential of its massive resource, thereby allowing it to extract a better deal for its shareholders. Cape Lambert has recently released fresh drilling results which confirmed the potential for a significant increase in the current JORC-compliant magnetite resource of more than 2.5 billion tonnes. The company envisions a $500 million plus mine and concentrator producing 15 million tonnes of high grade magnetite concentrate annually.

CITIC already hold mining rights to a billion tonnes of magnetite with Mineralogy's $2.5 billion Mr Clive Palmer's Cape Preston magnetite ore project which is 80 kilometer to the southwest of the Cape Lambert project.

BHP files appeal against ruling on Pilbara rail access

Mining giant BHP Billiton last week formally lodged its appeal of last months Federal Court ruling, on case filed by Fortescue Metals Group, saying that its Pilbara railways were not an integral part of the production process and should not be declared out of bounds to other potential users.

BHP Billiton has sought a ruling granting it exclusive rights to the railways arguing that allowing others on to the Pilbara railways of existing miners could cost Australia billions of dollars in missed iron ore sales and deferred expansions.

Mr Ian Loftus manager of Association of Mining and Exploration Companies said that he was disappointed by BHP Billitons action. He said Its a great pity that issues such as this are still being put through the court process. The issue of access to important transport infrastructure is critical to the further development of WAs iron ore industry, and I call on all parties to enter into productive discussions on the basis of good faith.

News of the appeal came as FMG announced that it would hold a ceremony on February 8th 2007 to mark the start of construction of the Pilbaras first open access railway.

Japanese trading houses interested in coking coal deposits in Russia

Bloomberg has reported that Japan's 3rd largest trading company Sumitomo Corp is considering teaming up with a Russian partner to develop a coal field in Siberia that could help to meet growing demand for coking coal from Japanese steelmakers. As per report another trading house Sojitz Corp is also interested in the project.

Mr Michihisa Shinagawa managing executive officer of Sumitomo recently said that Russian companies will take the lead in developing the Elga deposit in Russia's Republic of Sakha Yakutia. He without naming any companies said We would like to tie up with a Russian partner who will lead the project.''

A tender will take place in the first quarter of this year for the sale of the Republic of Sakha's 39.4% stake in Elgaugol, which holds a license to mine the Elga field. A stake of 75% minus one share in Yakutugol, Russia's leading exporter of coking coal in which Mechel owns 25% plus one share, will also be offered at the tender..

The Elga field, located about 800 km south of Yakutsk, the capital of the Republic of Sakha, may produce 30 million metric tons of coal per year. It has reserves of 2.7 billion tons of coal.

Indonesia to challenge Australia in thermal coal exports

According to some analysts and industry experts, Indonesia which is world's 2nd largest exporter of thermal coal would potentially challenge Australia for the top spot in 2007. Citibank in a recent report said "Indonesia has come from nowhere to challenge Australia as the world's largest exporter of thermal coal."

Indonesia's coal production has risen 20 fold since 1990 to an estimated 167 million tons in 2006, 73% of which is exported... Between January and October 2006, coal exports totaled around $5.1 billion up by about 32% YoY.

However, analysts said that with large potential coal reserves and growing domestic and export demand, Indonesia has the potential to capitalize on that strong market, but restrictive laws and perceived political risk have halted new investments and exploration by major foreign mining and energy firms in Indonesia. They added that growing domestic demand for energy in Indonesia and stagnating foreign investment have cast doubt on the country's ability to take advantage of expanding demand for coal in its export markets.

As per Indonesian Coal Association, at current levels of known mineable reserves, Indonesia's coal exports may grow to 170 million tons by 2009, but could drop to 160 million tons in 2010.

MRE sees continued steel exports from China

Macquarie Research Equities recently said that this increase in Chinese steel exports has been driven mainly by the regional pricing differential, with North American and European prices higher. MRE said that there has been opportunistic selling into these regions by some of the larger Chinese steel companies and that recent news has suggested Baosteel is looking to increase its presence in the European and North American region, so the trend of increasing exports might continue.

MRE added that consumption of steel in China has slowed as a result of government policy to slow construction and investment, which implies that the governments policies in regard to growth have been somewhat successful. But MRE do not see this as a reason to be concerned because MRE still believe that demand in China will remain strong over 2007. It said that the slowdown in consumption has also teamed with a slowdown in production so the net impact on pricing has not been that large. In addition current HRC pricing in China suggests that recent destocking has been successful and we might now be getting to a stage where supply starts to become tight again.

MRE believes that, despite increasing exports, hot rolled coil prices in Asia are set to be relatively stable over the next 12 months. MREs commodity team expects HRC prices will remain around the USD500 per tonne mark. The demand and supply profile in the region is reasonably well balanced at this stage. The percentage growth in steel prices that occurred towards the back end of 2006 is unlikely to occur this year and MRE still believe there might be some downside risk to our current forecasts. On a medium term view MRE believe the increase in production capacity that has occurred in China over the past few years will have an impact on local pricing.

SSINA releases USs special steel data for January to October

The Specialty Steel Industry of North America last week released the latest available statistical data on imports, US consumption and import penetration covering during January to October 2006.

Imports of total specialty steel comprising of stainless steel, alloy tool steel and electrical steel in the first ten months of 2006 were 828,803 tons a 12% increase as compared to the same 2005 period, US consumption was 2,600,277 tons an 12% increase and import penetration remained at 32%

IP Import penetration

IP Import penetration

SSINA is a Washington, DC-based trade association representing virtually all continental specialty metals producers. Specialty metals are high technology, high value stainless and other specialty alloy products. Member companies include AK Steel Corporation, ATI Allegheny Ludlum Corporation, Carpenter Technology Corporation, Crucible Specialty Metals, Electralloy, Haynes International Inc, ThyssenKrupp Mexinox SA de CV, North American Stainless, Outokumpu Stainless Inc, Precision Rolled Products, Special Metals Corporation, Timken Latrobe Steel, Universal Stainless and Alloy Products and Valbruna Slater Stainless Inc.

Turkey on the way to be billet net importer in 2006

According to data released from Turkish Steel Producers' Association Turkey is on the way to become a net importer of billet due to strong domestic demand of rebar.

As per reports, Turkey was a net exporter of billets by 1.031 million tonnes during January to September 2005, which has reduced to only 0.100 million tonnes during January to September 2006.

The volumes are in million tonnes

The trend is likely to continue since the rebar market looks booming with pricing going upward. Most billet consumption goes to rebar capacity and there is not much spare billet around forcing rebar producers to look for imports.

Shanxi to reduce coke enterprises to 150 by 2010

Shanxi Province is reportedly shooting at a cut to 150 coke enterprises and phasing out 40mt backward capacity by four years efforts. With the purpose of making full use of coal resources, the local government lately issued a notice to quicken up promoting cyclic economy, by applying it to coal exploitation and coking industries. At the moment, resource utilization ratio stands quite low in Shanxi, of some 20%, hitting nationwide low.

The notice prescribes that in the first place, cyclic utilization should be promoted and the coal industrial chain extended in addition to reformation of small & medium collieries and elimination of backward capacity. Moreover, low heat value fuels should be utilized to generate power and make construction materials. By 2010, small collieries at the large coal bases would be cut by 70% and mines with an annual capacity of over 300,000t should account for 90% of total coal output. All large coal enterprises should come up to norms of pollutants treatment and emissions released by related local and central bodies.

In addition, Shanxi Coking Coal Group and Shanxi Coke Group will be expanded to be with over 10 million tonnes per year capacity each by 2010, 40 million tonnes capacity will be washed out and the coking enterprises be cut to 150, with an average output up to 600,000 tonnes per year. Fresh water consumption for per ton coke produced should be limited at 2.5 cubic meters, coke oven gas utilization rate up to 95%.

The notice further calls for development of the coal chemical industry and aims to improve fine chemicals proportion.

(Sourced from MySteel.net)

South Africa set to increase thermal coal export in 2007

South Africa, the biggest supplier of coal to European power plants may export 13 % more of the coal in 2007 if rail services improve and production is unaffected by rain.

Mr Xavier Prevost chief minerals economist said that South Africa could export between 76 million tonnes and 78 million tonnes of coal in 2007. He said "We have the mines and the production to attain the increase.

Rail shipments by Spoornet may improve this year. Mr Ben Magara head of Anglo's South African coal operations said that, "Spoornet has taken steps through 2005 and 2006 to bring the true capacity of the export coal line up to the contractual capacity and expected to move a significantly increased tonnage in 2007.

South Africa is 3rd largest exporter of thermal coal after Australia and Indonesia and ships most of its coal through Richards Bay on the northeast coast and some coal are also loaded at the southeastern port of Durban and at Matola in neighboring Mozambique. It exported 69 million tons of coal last year 3.5% less YoY than in 2005 after rains cut mining production and inadequate rail service prevented companies from recouping the losses later in the year. BHP Billiton, Anglo American and Xstrata are the largest local coal exporters.

MNSS takes over Serbian Niksic Ironworks

UKs MN Speciality Steels has become the new owner of the Steelworks in Niksic at Montenegro in Serbia on January 10th 2007 as all the conditions for taking over have been met and MNSS paid EUR 5.2 million.

Mr Branko Vujovic former president of the board of directors said that MNSS presented the complete investment plan for 2007 under which it shall invest EUR14 million and would further invest the sum of EUR 117 million in the next five years.

Mr Vujovic said that the company shall keep 1,500 workers and plans to employ additional 100 after the year one and two. He added that "They also plan to allocate EUR 800,000 every year for a social program.

The contract on sale of 66.7% of shares of the Steelworks was signed by representatives of the management, the British company and the Government on November 8th 2006.

China's power capacity crosses 600,000MW in 2006

According to the latest statistics of China Electricity Commission, China's aggregate installed generation capacity reached 622,000MW in 2006 up by 20.3% YoY and China generated 283,440MW hours over the course of the year up by 13.5% YoY as compared with 2005.

Chinas hydropower generation capacity reached 128,570MW in 2006 up by 20.67% YoY and thermal power generation capacity stood at 484,050MW accounting for 77.82% of generation.

The CEC estimates that the aggregate installed capacity will total around 800,000MW by the end of 2010.

Bahrain based USCO SS rolling mill to start in April

It is reported that a $153m syndicated loan facility, for which the agreement had earlier been signed with the Arab Banking Corporation as sole underwriter and mandated lead arranger in December 2005, will be used to part finance the construction of the United Stainless Steel Company in Hidd in Bahrain.

USCO was established in February 2005 and construction started in April 2005. The plant will produce 90,000 tonnes of SS a year at a total investment of AUD200 million and is scheduled for completion by the end of April.

The project has brought together several strategic GCC private and public sector investors like the GIC, Qatar Steel Company, United Gulf Industries Corporation of Qatar, National Industries Group of Bahrain, Al Rashid Group of Kuwait, Al Kharafi Group of Saudi Arabia and the Kuwait Foundry Company.

US coal output of 1.052 billion tonnes in 2006 sets a record

As per the latest data from the US Energy Information Administration, US coal production has set a new coal production record in 2006, making it the second consecutive year of record breaking demand for US coal used by power and steel companies. According to the National Mining Association, 1.052 BILLION TONNES of coal mined in the US in 2006 topped the previous record set in 2005 by 2.5%.

Mr Kraig R Naasz President and CEO of NMA said that his organization expects continued YOY growth in coal production. Mr Naasz said "As the new congressional leadership sets its energy and economic agenda, leaders from both parties should recognize the continuing demand for coal and minerals critical to our economy and the implications of any policies that might impair the ability of America's mines to meet this demand."

Minaras nickel production up by 6.1% YoY in last quarter

Australias 2nd largest nickel producer Minara Resources Ltd announced that nickel production at its Murrin Murrin mine rose by 6.1% YoY during the December quarter. Production at the mine in Western Australia was 8,262 tonnes during the quarter as compared with 7,790 tonnes for the same period in 2005.

Mr Peter Johnson CEO of Minara said that "This has been a period of consistent plant performance with a solid production profile which included a planned shutdown of the acid plant.

Minara further said that it would be targeting output of between 32,000 tonnes to 35,000 tonnes in 2007.

Minara is owned by Glencore International.

Dynatec secures funding for Ambatovy

Dynatec Corp announced that it has reached an agreement in principle with lenders to borrow at least USD1.7 billion to help develop its 45% owned Ambatovy nickel cobalt project in Madagascar with the help of a syndicate of leading development banks including Japan Bank for International Cooperation, The Export-Import Bank of Korea, Export Development Canada, the European Investment Bank and the African Development Bank.

The lenders, in conjunction with Dynatec and the other sponsors of the project are now expected to continue with the due diligence and project appraisal, before signing the deal sometime in the June quarter.

Mr Bruce Walter president and CEO of Dynatec said "Completing the project financing term sheet on schedule is the latest milestone to be achieved as we move Ambatovy towards construction this summer."

Ambatovy, located 80 kilometer east of Antananarivo, has estimated proven and probable reserves of 125 Mt at 1.04% nickel and 0.099% cobalt and is expected to produce 60,000 tonne per year of nickel, 5,600 tonne per year of cobalt and 190,000 tonne per year of ammonium sulphate when production begins with expected mine life of 27 years.

Dynatecs JV partners in the project are Sumitomo Corp and Korea Resources Corp which both own 27.5% and SNC-Lavalin has agreed to buy a 5% stake in the project from Dynatec after the funding has been secured.

SUEK modernizes its enterprises in Primorsky Krai

Siberian Coal Energy Companys Primorje's Mine Administration Vostochnoye on 'Yuzhny-3' section put into operation a new complex mechanized clinker No 62.

The clinker length is 150 meters and the average daily load of the breakage face is projected at 1500 tons. Technically the clinker can secure the production of 2000 tons per day.

Startup of the new clinker was performed under the program of maintaining and expanding the volumes of underground coal production at Vostochnoye MA.