According to a press release, Rashtriya Ispat Nigam Ltd has achieved the best ever turnover of INR 9,000 crore in a calendar year during 2006 and the current year is going to be the silver jubilee year for the company formed in 1982. RINL produced 3.12 million tonnes of finished steel and 3.298 million tonnes of saleable steel during the 2006 calendar year.

Mr Y. Sivasagara Rao CMD of RINL at the New Year celebrations in the plant said that 2007 was going to be a landmark year in the history of the plant. He said that, however, there was no room for complacency, and the employees and the management should strive together for the completion of the expansion project taken up at a cost of Rs 8,600 crore on time.

Mr Rao added that "We bagged several prestigious awards at the national level during the year, especially the National Energy Conservation Award, the seventh time in a row, and the CII Excellence Award towards strong commitment."

According to a Statesman News Service report, the Visthapan Birodhi Janamanch, leading the agitation and road blockade since that dreadful day, has made elaborate plans for observing the first anniversary of the police firing in which 13 of tribal were killed on January 2nd 2006.

The schedule beings at 8AM at the Veer Bhumi, where 13 persons, including women and a child, were cremated en mass and several eminent social activists are reaching for the meeting to reiterate their resolve to combat the state sponsored robbery of livelihood.

As per report, none of the bereaved families, barring one, has accepted the compensation or ex gratia money given by the Government. Each family was entitled to get over INR 500,000 from the government but they have not claimed it for one year despite struggle to sustain their families.

The outcome of this meeting is crucial to the entire process of industrialization in the area and given the fact that the TATAT Steel has declared their desire to commence work from April.

BS reported that TATA Ryerson will be setting up a processing plant overseas, either in China or Africa, in the coming financial year as its maiden overseas foray.

Mr Sandipan Chakravortty MD of TATA Ryerson told that there were many facilities in China, but those required modernization and the location and whether the company would go for a buyout would be decided at the meeting. Mr Chakravortty said the investment would be funded through internal accruals and loans.

A vibrant steel sector is the backbone of a strong economy and Indian steel industry has registered strong growth during the year backed by increasing domestic consumption, demand and export trends.

The production of crude steel in 2005-06 stood at 42.1 million tonnes, showing an increase of 7.1%, when compared to previous year. The consumption of steel in 2005-06 stood at 41.43 million tonnes, which has grown by 13.88%, when compared to the previous year. The growth in consumption has been much higher than the stipulated growth of 7.3% projected in the National Steel Policy. The production of sponge iron has increased sharply by 25% from the level of 10.3 million tonnes in 2004-05 to 12.9 million tonnes in 2005-06 and India is currently the largest sponge iron producer in the world.

Keeping in view the growing demand, both public and private sector steel plants have announced significant expansion plans. The two major public sector steel companies under the Ministry of Steel are implementing massive modernization and expansion programs. As per the Corporate Plan 2012 of Steel Authority of India Ltd, a capacity enhancement to a level of 22.9 million tonnes of hot metal from the present level of 12.5 million tonnes is envisaged by investing about INR 37,000 crore by 2011-12 in its different Plants. Prime Minister laid the foundation stone of IISCO modernization and expansion plan on December 24th 2006, envisaging an investment of INR 9592 crore. Launching of similar plans at other SAIL plants will follow. Rashtriya Ispat Nigam Ltd, another public sector steel company, is already implementing an ambitious expansion program for increasing its liquid steel capacity from the existing 3 million tonnes to 6.3 million tonnes at an estimated cost of INR 8692 crore by 2008-09. This was launched on May 20th 2006.

Domestic and foreign investors have shown a great deal of interest in setting up steel capacities in the country. Altogether, 116 MOUs have been signed in various States with intended capacity of around 150 million tonnes, with an investment of INR 357,000 crore.

As per the recommendations of the Expert Group made in February, 2006, the following merger proposals are under process.
a) Merger of Maharashtra Elektrosmelt with SAIL
b) Merger of Bharat Refractories Ltd. with SAIL
c) Merger of Sponge Iron India Ltd. with NMDC

Ministry of Steel has taken several consumer friendly initiatives during 2006.

1. All the major steel producers will make steel items available in rural areas through their dealer network at the same price, as applicable at Metros. The cost of transportation as well as distributors margin will be borne by the producers. This would help rural consumers to the extent of INR 500 to INR 700 per month. The concern of the common man will be kept in view by the producers, while fixing the price of such items.

2. In order to provide quality steel to the consumers, it has been decided to notify 16 BIS standards for steel which will be mandatory for marketing steel products in the country. A time period of six months will be given for the steel producers to ensure this.

3. All major steel producers will adopt villages around their steel plants as part of their corporate social responsibility. Appropriate schemes in the areas of health, education, livelihood promotion etc. will be drawn up, preferably in conjunction with Government development schemes in those villages. In such endeavors, use of steel will especially be promoted.

4. It has been that all the PSUs under the Ministry of Steel would be spending at least 2% of their distributable profits on corporate social responsibility.

5. It has been decided to launch a major promotional campaign jointly by major steel producing companies in public and private sectors and Ministry of Steel to increase steel consumption in the country.

6. In order to improve steel consumption in rural areas, district level dealership schemes have been conceptualized. Public sector steel companies, namely, SAIL and RINL, would cover all the districts with their dealership network by 2006 network. Priority is given to SC/STs and OBCs in the allotment of dealerships.

7. To promote transparency, the PSUs under the Ministry of Steel are increasingly using the electronic route for procurement and also for sales. Dedicated websites for hosting of tenders have been launched in all the PSUs.

8. An exercise was launched for improving the functioning of the vigilance machinery in the PSUs. Consequently, the two major steel PSUs, SAIL and RINL have obtained ISO 9001-2000 certification for their vigilance department during the current year.

PTI reported that, BHEL has announced an investment of INR 3,200 crore in the 11th Plan to expand its equipment manufacturing capacity to 15,000 MW annually.

Mr Ashok K Puri CMD of BHEL told PTI that "We have just completed our first phase of expansion to increase capacity to supply equipment for 10,000 MW capacities at an investment of INR 1,200 crore. But this is not the end of it. We are developing plans to expand further. In the 11th Plan we should place this in motion but we have to create capacity as per the need but not when the demand is just on paper."

Mr Puri said the total investment of INR 3,200 crore would be in a combination of expansion through Brownfield capacity and modernization of existing facilities.

BHEL had decided to expand its capacity to 10,000 MW by this year from 6,000 MW per annum at the start of 10th Plan in 2002.

ET has reported that Lanco Infratech, which posted a turnover of INR 130 crore in 2005-06 and is poised to post INR 1,700 crore in 2006-07, is looking at generating revenues of INR 8,500 crore by 2011 when its current capacities become operational.

Mr L Madhusudan Rao chairman of Lanco while talking to ET said: We now have a total thermal capacity of 8,263 MW in process and under operations. Our power revenues will be in the region of INR 8,500 crore by 2011 when the current portfolio is operational. We are looking at INR 5,000 crore turnovers in 2007-08.

As per report, Lanco, after Sasan, is now eying Krishnapatnam ultra mega project in Andhra Pradesh, where the bidding is scheduled for March 2007, and is already scouting for coal mine reserves in Indonesia, Australia and South Africa to feed the Krishnapatnam project.

Lanco Infratech holds 74% in Nagarjuna Power, 59% in Kondapalli, 51% in the proposed Sasan ultra mega power project and 69% in Amarkantak. As per reports Lanco Infratech is looking to increase by 51% to 100% in all its power projects and is considering buying 25% of Globeleqs stake in Lanco Kondapalli.

It is reported that, Gammon India has emerged as the leading bidder for Mumbai Port Trust's InR.1200 crore offshore container terminals. Gammon India quoted a winning revenue sharing ratio of 35.064% while the only other bidder, a consortium led by Larsen & Toubro quoted 31.122%.

Gammon India has tied up with Italian company Dragados SPL and its own subsidiary Gammon Infrastructure Projects while L&T had roped in Philippines port major International Container Terminal Services Inc as consortium partner.

The bidding process was held up for over two years due to delays in the Indian government deciding on the involvement of Chinese companies and Hutchison Port Holdings was refused security clearance.

Mr Yao Jingyuan chief economist of the Chinas National Bureau of Statistics announced that China's gross domestic product is expected to rise by 10.5% in 2006 over 2005.

Mr Yao while addressing a Chinese Economist 50 Forum said China's economy has maintained a fast, steady and high quality growth this year, but efforts needed to be strengthened as bank loans were still expanding at a rapid pace, fixed assets investment remained high and the trade imbalance lingered.

In the first nine months Chinese economy experienced rapid growth, with the GDP up by 10.7%, the industrial sector up by 13%, retail sales up by 13.5% and the foreign trade volume up by 24.3% over the same period last year.

Russian gas giant Gazprom has signed a 5 year contract, only two minutes before the New Year ended, for Russia's natural gas deliveries to Belarus at $100 per 1,000 cubic meters, ending a long dispute with Belarus over natural gas deliveries. Gazprom also agreed with Belarus to buy out 50% of Beltransgaz shares, worth $2.5 billion, within the next four years.

A Gazprom spokesperson said "The price on natural gas will be $100 in cash per 1,000 cubic meters starting with the New Year and will be adjusted in the future according to a price formula in the contract.

Earlier Gazprom proposed that Belarus pay $75 per 1,000 cubic meters in cash, plus $30 in shares of Beltransgaz, the former Soviet republic's gas pipeline operator.

This agreement is in line with Gazprom's policy to bring gas prices for Commonwealth of Independent States countries up to the European level, taking into account the distance of deliveries. Gazprom currently charges European customers over $250 and the price for Belarus would increase annually and reach the European level & Russia's future domestic level, minus the transit cost and export duties, by 2011.

Zaporizhstal, in a release said that claims of radioactive metal products supplies from Ukraine are spurious ones without facts proved and purposively discredit Ukrainian steelmakers at the international market. It added that all these absolutely groundless and unscrupulous charges are aimed at out competing of Ukrainian exporters from the world markets and reorientation of customers to rolled products of other producers.

The release said that At the Ukrainian integrated Works very tight standards of radiological inspection are effective for both the input raw materials and finished metal products what makes shipments of radio contaminated, environment detrimental and hazardous to health finished products impossible to the customers. Furthermore, within the entire period of the propaganda campaign not a single case of the attempted export of radioactive metal products has been detected.

Zaporizhstal JSC has officially applied to the representatives the Ukrainian parliamentary delegation in Position of the Council of European Parliamentary Assembly, the dedicated committee of the Supreme Council of Ukraine, the biggest Ukrainian iron and steel plants and the corresponding ministries with the aim to make a contribution to solution of the issue in question.

In January 2007 a setting of Bureau of PACE will be held to review the proposal of 7 countries including Russia, UK, Lithuania, Luxemburg, Macedonia, Portugal and Switzerland to finish off Draft recommendations aimed at protection of EU market from radioactive metal products originated from Ukraine.

The release adds that Jordan monthly Al-Khadas had published information in February 2006, which irresponsibly positions the rolled products of Ukrainian origin to be radio contaminated and subsequently official agencies of Middle East countries have started an investigation.

According to Xinhua Economic Analysis Report released, the exchange rate of Renminbi, the Chinese currency, is expected to appreciate by some 5% to one US dollar for 7.44 yuan. The report projected that the pace of RMB appreciation would be faster in the first half of 2007 than in the second half.

The report held that the short term RMB exchange rate will be influenced by the fluctuation between the dollar and other currencies, but in the long run, it depends on the progress of China's exchange rate reforms. Stable appreciation in small steps is generally expected.

In 2006, the value of the RMB rose by 3.28% against the dollar, with an accelerating trend from 0.66% in the first quarter to 1.15% in the fourth. The central parity price closed at one US dollar for 7.8141 yuan, the lowest of the year.

Earlier in December, China's State Information Center predicted a 3.4% appreciation of the yuan in 2007, while the Bank of America and Deutsche Bank expected a rise of 4.6% and 4.5%, respectively.

Xinhua Economic Analysis Reports are regular products by a team of more than 80 economic analysts under Xinhua Economic Information Department. The latest issue of the reports reviewed the country's ten key indices in the economic and financial sectors and made projections on possible changes in the coming year.

The Associated Press reported that with the lockout at AK Steel's Middletown Works entering its 11th month, leaders of the union representing some 1,800 workers has done an about face as they are now embracing contract terms that members overwhelmingly rejected in October 2006.

Mr Brian Daley, president of the International Association of Machinists Local Lodge 1943 said that the union has dropped its opposition to outsourcing work, but wants assurances that the company won't use rigorous back to work physicals as a way to get rid of hundreds of longtime employees and strip them of pension and health care benefits. The union fears that some older members might not pass the rigorous physicals given to new hires even though their condition had not changed during the lockout.

Mr Daley said union leaders endorse the company proposal, which they refused to do when it was put to a ratification vote, with only the addition of a medical grievance procedure during the callback period. Mr Daley said that in urging the company to revive the offer, he did not guarantee ratification but thinks it would be likely.

Mr Alan McCoy a spokesperson of AK Steel said They're trying to jump two steps here. For them to proclaim that they've made a giant step by endorsing an offer that isn't even on the table is meaningless. Mr McCoy said the company will review the proposal, but no negotiations have been scheduled.

UK's The Sunday Times has named the Mr LN Mittal president and CEO of worlds largest steel company Arcelor Mittal as the Business Person of 2006 on the basis of voting done by the readers of the newspaper over Mr Stuard Rose who revived Marks and Spencer and Mr John McAdam who resuscitated ICI.

The Sunday Times said "Lakshmi Mittal embodied the rise of a new breed of Indian entrepreneur: confident and commanding on the world stage. And he has done it all his way, including, at the end, taking the Chief Executive's job at the new company, rather than the back-seat position of president.

The Australian Financial Review reported that one of Australia's mining export customers POSCO has warned Australian governments they risk losing commodity export sales if they do not invest heavily in infrastructure because it benefited more than most countries from the commodity price boom.

Mr Kwon Young-tae purchasing executive of POSCO said that when a company expected to earn more revenue, it invested to expand capacity. So Australia thus should take a similar approach to mining industry infrastructure when making windfall gains from the commodities boom. Mr Kwon said POSCO had experienced labor and infrastructure bottlenecks in Queensland, NSW and Western Australia.

Mr Kwon said "It is good for Australia, because if Australia fails to do this we will have to find an alternative. And once we have fixed the problem by buying elsewhere, it takes time to swing back."

POSCO, the third largest steelmaker in the world, is the largest private buyer of Australian mineral products and plans to spend about $3.2 billion this year on coal, iron ore, nickel and zinc an increase of almost 15% YoY.

Xinhua has reported that the year 2006 has witnessed major changes in China's iron and steel industry, in areas such as the national distribution of plants, the regrouping of companies, the upgrading of products and the ownership of enterprises.

Mr Liu Rujun vice chairman of the China Iron and Steel Association said "China's iron and steel companies are moving to port cities and places with raw materials, which is the most outstanding change in the industry distribution. Shougang Group, based in Beijing, will complete its massive relocation to Tangshan, Hebei Province by the end of 2010, which will reduce their transportation cost and give assured supply of raw material because of Caofeidian port and abundance of iron ore in Tangshan. Shanghai Baoshan Iron and Steel Corp has built a new steel factory in the southern city of Zhanjiang, Wuhan Iron and Steel Corp has built a plant in Fangchenggang in south China and Angang Steel Co. has started its new plants in Yingkou in northeast China.

In order to improve status on the international arena, China's steel companies not only resorted to relocation, but also to consolidations as well as merge and acquisition campaign. Tangshan Iron and Steel Company located in the northern Hebei Province has taken over two local steel mills, the Xuanhua Steel and Chengde Steel and thus risen to be China's 2nd largest steel maker next to Baosteel. The new company has also teamed up with the Shougang Group in Beijing in building a new steel production base in Caofeidian in Hebei Province with an annual output capacity of 15 million tons. Anshan Iron & Steel Group in northeast China's Liaoning Province also regrouped with Benxi Iron & Steel Company, a local steel company in Liaoning's Benxi City in 2004.

China's steel industry also tries to optimize the products structure as a way out in the fierce global competition by shutting down small and outdated plants and encouraging innovation. North China's Hebei Province will close 26 small and outdated steel production units by the end of 2007 and the first shutdown was started in Tangshan at the beginning of this month.

Private enterprises encouraged to take part in the steel sector by the government has grown into an important power, accounting for more than 36% of the national output. In Hebei, private steel companies produced 51 million tons of steel during the first ten months of this year or 66.11% of the total output of the province. Jiangsu Shagang Group Co. Ltd., a private steel company, has become China's fifth largest steel company.

AP has reported that Britain's largest private sector labor union Amicus announced that it was planning to form an international organization of 6 million members by federating with unions in the United States and Germany and that it has signed agreements, aimed at an eventual merger, with German engineering union IG-Metall, United Steelworkers and the International Association of Machinists.

Mr Derek Simpson general secretary of Amicus said that the creation of a single group would help workers deal with multinational businesses that trade off countries and workforces against each other. He said Our aim is to create a powerful single union that can transcend borders to challenge the global forces of capital and I envisage a functioning, if loosely federal, multinational trade union organization within the next decade."

He added that "As a single union we will be able to focus on delivering better pay and conditions for our members and have the organizing strength to reach out to new trade union members in our existing work places, as well as in new industries."

Members of Amicus and Britain's Transport and General Workers' Union are due to vote by May on plans to merge and create a workers' group of two million Britons. IG-Metall has around 2.4 million members, the United Steelworkers around 1.2 million and the International Association of Machinists about 730,000.

Tangshan Steel Group has last month signed a long term strategic cooperation agreement with Shanxi Coking Coal Group Co. According to the agreement, SXCC will stably supply coking coal to the steel maker during 2007-2015.

Tangshan steel group includes Tangshan Steel, Chengde Steel and Xuanhua Steel, where as SXCC has been the largest coking coal producer in China.

(Sourced from Mysteel.net)

News Agency of Nigeria has reported that Nigerias federal government plans to present a bill regulating the metal industry as part of the on going reform of the economy.

Mr Bayo Kolade director of steel in the Nigerian ministry of power & steel told NAN last weekend that the ministry and the bureau of public enterprises has finalized the draft policy required for the drafting of the bill. He said that the draft bill would soon be presented to the Federal Executive Council for its approval before its presentation to the National Assembly for passage into law next year.

Mr Kolade said At the moment, we have more than 25 private metal plants in the country and nobody is regulating their operations to ensure compliance with the Nations laws and policies. It is only the ministry of labor that has policies on workers safety and the environment ministry on environmental issues. The bill being proposed by the ministry intends to address the proper regulations of those private plants.

Mr Kolade said that a Metallurgical Inspectorate Department would be established after the enactment of the bill to effectively police the metal industry to ensure its adherence with the countrys laid down laws and policies.

STT team regrets incorrect use of FYROM (Former Yugoslav Republic of Macedonia) in the above referred news article in place of the Republic of Macedonia.

Our readers are requested to note the correct name.

The error is sincerely regretted

During the first 11 months of this year, Shanxi Province exported a total of 5.054 million tonne of coal down by 32.9%YoY and the export value totaled $ 326 million down by 27.85% YoY.

The coal export tax rebate which was abolished this September 2006 and imposition of 5% tax on exports of coal from November 1st 2006 have eroded the export.

What's more is the tightening availability of resource and growing demand, which pushed up the price to come closer to the international level, and in turn drive down profitability of export.

It's commented the tax regulations that reflect policy orientation of curbing high polluting, high energy consuming and resource intensive products export in the meanwhile compress foreign exchange income by adding to the producers' cost.

(Sourced from Mysteel.net)

AP has reported that Henderson based Pact Resources LLC wants to open an underground mine near Sebree in western Kentucky.

According to a statement distributed last week by the Northwestern Kentucky Forward regional economic development organization Pact Resources hopes to begin construction in 12 to 14 months, with initial coal production expected to begin in 2009. According to the statement
This mine is conservatively projected to produce 1.5 million tons of coal each year with a projected mine life expectancy of 20 to 25 years.

Mr Ron Siler co owner of Pact Resources said in a statement "Our mission is to be a competitive producer and supplier of western Kentucky coal while providing safe, secure jobs and maintaining a good-neighbor standard within the community.

Mr Siler, former chairman and president of the Western Kentucky Coal Association, worked for Peabody Coal and Mapco and later formed Pact Resources in 2003 with a partner, Mr Gregory P Cantrell, the former director of corporate fuels and byproducts for LG&E Energy Inc. Pact Resources control 90 million tons of coal through a combination of leases, options and direct ownership.

Jinan Steel injects RMB 300 million into a steel products processing project in Hefei in an attempt to enhance cooperation with local sub branches of Japanese Hitachi and Toyo Carrier Manufacturing Co Ltd.

(Sourced from Mysteel.net)

Vietnams HCM Citys department of planning and investment has granted Mitsui Viet Nam Ltd Co an investment license last week to establish a wholly foreign owned affiliate in Viet Nam, making it the first wholly foreign run firm in the trade sector.

$30 million Mitsui Viet Nam Ltd Co is now permitted to carry out distribution, export and import activities and is expected to start operating next year. Under the terms of the license, Mitsui is allowed to import goods in a form that can be sold direct to distributors and manufacturers in Viet Nam.

Under the previous Law of Investment, foreign enterprises were not allowed to operate in the Vietnamese trade sector.

It is reported in media that mining giant BHP Billiton is facing problems from farmers in the south of Gunnedah in northwest New South Wales over some of Australia's largest coal reserves estimated at 500 million tonnes of coal.

As per reports, while the lands are rich in coal, they are also among the most productive agricultural lands in Australia and feature significant underground water reserves and farmer worry that underground mining could disturb ancient aquifers, threatening their livelihoods.

The Caroona licence was awarded to BHP earlier this year after its tender, along with a $100 million fee, was accepted by the NSW Government. The license area covers 350 square kilometers including pastoral and freehold farming on the Liverpool Plains, acknowledged as the richest farmland in NSW.

BHP wants to begin an 18 month drilling campaign involving 87 bore holes which would build on 46 bore holes drilled by the NSW Department of Mineral Resources. BHPB in a statement said "The exploration phase at Caroona is critical to collect data so BHP Billiton, the NSW Department of Mineral Resources and Department of Planning and the local community can work together to understand how a mine proposal could proceed without negative impact on agriculture.

TMKs subsidiary Volzhsky Pipe Plant has won the Leader of the 21st Century contest of enterprises of the Southern Federal District in the categories Elite of Russias Metallurgical Complex and Modernization of Production for sixth time.

A company release said that it reflects the high level of social responsibility of TMK, which is carrying out broad scale modernization of production at all of its enterprises and that a number of investment projects directed towards the implementation of new equipment and technologies in production were realized at Volzhsky Pipe Plant in 2006 allowing the enterprise to increase the quality of its output, expand its range in conformity with the requirements of its main consumers, and reduce the companys effect on the environment.

It is reported that, Mechel Group member coal company Yuzhniy Kuzbass has assembled an $11 million worth excavator RN 2800 with the largest capacity of the bucket in Russia 33 cubic meter with the help of US Company HARNISCHFEGER.

As per reports, the excavator is in full conformity with complex geologic and mining conditions of Sibirginskiy pit and is intended for the increase of stripping volumes by the automotive technology.