Mr Bhairon Singh Shekhawat VP of India after presenting the National Safety Awards for Mines for the year 2002 and 2003 urged Indian mining industry to do better for the welfare of the miners.

Mr Shekhawat said that The mining industry is employment intensive and supports and sustains the livelihood of the millions of our poor and deprived people. Extraction of mineral wealth in economically backward and tribal regions has the potential to create exponential opportunities for income generation for the poor.

Mr Shekhawat added that mining industry is important to our economy but it is also a hard reality that mining has been and continues to be hazardous. He said It has rightly been deemed to be a war with unpredictable forces of nature. Extraction of minerals from below the surface of the earth is fraught with innumerable risks. There are dangers form collapsing ground, explosion, fire, inrush of water release of noxious and inflammable gases apart from the risks of injury prolonged hard physical work in cramped ill lighted conditions and other occupational health hazards. The work of the miner is not only risky but is also extremely arduous and tiring.

He also said that the mining sector has been further opened up to private and foreign investment, with increased mechanization, modern techniques and increased depth of mining a new safety ethos must emerge in the industry. He said Engineering and enforcement will still be needed, but greater attention should be focused on education.

Reuter reported that Bolivian government has given time till the month end to Jindal Steel and Power Ltd for signing contract for development of El Mutun iron ore reserves in the eastern region of Santa Cruz of Bolivia.

Mr Guillermo Dalence Bolivian mining minister was quoted as saying by state news agency ABI that "The government is not going to do anything against the country's interest but it's clear that if by February 28th the company does not comply we will sign the contract."

Mr Luis Alberto Echazu mining vice minister told Reuters the problems with the contract arise from JSPL's refusal to accept the government's conditions on taxes and the price the company would have to pay for natural gas. Mr Echazu said that the next two weeks are going to be crucial adding that "There is another Indian company interested in this contract, but we are engaged in serious negotiations with Jindal."

The signing of the El Mutum contract has been postponed several times since JSPL signed an agreement in August 2006 to develop El Mutun at an investment of more than USD 2 billion to mine iron ore and produce steel.

Times News Network reported that National Commodity & Derivatives Exchange is in talks with big construction firms including L&T, Shapurji Pallonji, Gammon India and Nagarjuna Construction etc to enlist their support for trading in its steel future contracts as it is planning to launch a contract for futures trading in TMT bars.

The report mentions that these companies are evincing keen interest as they can avoid the risk of volatile prices if they hedge on the exchange platform and directly purchase their long term requirements from the exchange.

Steel ingots, which already trade on the exchange, are the raw material for TMT bars. Ingot prices are closely linked with steel bars, and therefore seen as an indicator of price movements in downstream products. The NCDEX mild steel ingot contract was launched in March 2005.

It is reported that Power Finance Corporation is examining the change in ownership of Globeleq Singapore with regard to Sasan ultra mega power project after Lanco and JSPL acquired 100% stake in it.

A PFC official said "We have issued a letter to Globeleq asking them to clarify their position in the Sasan project. We will wait till February 28th to hear from them before taking a stand. There is a problem only if Globeleq is totally out of the project. The project is awarded to a consortium and in case Globeleq dilutes its stake below 51 % then they are out and the project will go to L2."

Reliance Energy Limited is the L2 bidder for Sasan.

UK based power investment firm Globeleq recently announced that it has sold its entire holding in Globeleq Singapore Private Limited to Prince Stone Investments Limited and Jindal Steel & Power Limited. According to the new ownership structure Lanco would have a total stake of 72 % in the Sasan project while Jindal would initially hold 28% with the option to raise it to 49 % later.

Globeleq along with Lanco Infratech had recently won the 4,000 MW Sasan ultra mega power project quoting a tariff rate of INR 1.196 per unit. As the lead promoter Globeleq had to invest INR 2,240 crore while Lanco's share stood at INR 960 crore in the Sasan project.

South Africa's coal or natural gas to liquid technology owner Sasol is reported to be in early stage talks about establishing a CTL plant in India.

Mr Johann van Rheede spokesman of Sasol said the company was holding talks with a number of Indian parties in and that any plant in India would have a nominal capacity of at least 800 000 barrels per day of liquid fuels.

Sasol has identified China, India and the US for CTL opportunities and had entered a JV with a consortium led by China's Shenhua Corp that will conduct feasibility studies on the potential of a coal to liquids project in China's Shanxi Province. It also signed a similar agreement with Shenhua Ningxia Coal Ltd for 80000 barrels per day operation. The company said at the time each of the plants would cost more than USD 5 billion to build.

Pakistans news International reported that Pakistan is likely to import around 20,000 tonnes of steel from India for exclusive use in the quake hit region as the government has allowed the import of mild steel reinforcement bars, light angle and corrugated galvanized sheets for the purpose.

The report cites some traders as saying that consignments would start reaching the country as soon as the snowfall came to an end and that At least 15,000 to 20,000 tonnes of galvanized steel should be imported.

The decision on the import of steel products from India, which came into force on January 18th 2007, would remain operative till March 31st 2007.

Around 12,000 tonnes of galvanized sheets were imported from India during last year after the government allowed import from the neighboring country exclusively for use in the quake hit region.

TATA Motors Ltd announced that Fiat and TATA Motors are expanding their strategic co operation with the start of an industrial project outside India as a further significant step towards an integrated to build a pick up vehicle bearing the Fiat nameplate at Fiat Group Automobiles plant in Cordoba in Argentina follows a feasibility study started in July 2006.

The new project will have annual production of around 20,000 units at an investment of around USD 80 million their first vehicles will roll off the Cordoba assembly lines during 2008.

While the Fiat pick up powered by an FPT engine will be styled and positioned differently from the Tata pick up. It will be available in the 4x4, 4x2, double and single cab and powered by a JTD diesel 2.3 liters, 134 PS Euro IV engine, manufactured in Fiat Powertrain Technologys facility at Sete Lagoas in Brazil.

Mr Ratan N Tata chairman of the TATA Group said that "I am very pleased at this first step in expanding the Fiat Group and Tata relationship beyond the shores of India, and would hope this would augur well for a truly global partnership across markets and business segments."

Gail India Ltd has announced that it has launched e tendering as its e governance initiatives in the Company.

The system for e-tendering has been designed and developed on the SAP-SRM platform and is suitable to handle both single and 2 envelope system for limited and open tendering. As per GAIL release, the tendering process is fully secured, transparent and ensures confidentiality. The system has the facility for time and date digital locking and opening of electronic tender. The system enables on line submission of technical bids and price bids in standard format and templates.

Dr UD Choubey CMD of GAIL said that "Today GAIL is in very competitive environment and the need of the hour is to enhance our operational efficiency and to complete our projects in time without any cost and time overrun. I am sure with e-tendering tool our efficiency would increase, as it aids faster decision making and reduces the cost of transaction."

Indian ministry of finance had directed that all government departments should switch over to e-tendering from July 1st 2007. The company had already launched e-Procurement of non-stock items in October 2005 and stock items in November 2006.

Lanco Infratech has announced that its subsidiary company Lanco Kondapalli Power had received a letter of acceptance from National Highways Authority of India for designing, engineering, constructing, developing, financing, operating and maintaining 237.7 kilometer 318.0 kilometer long Bangalore Hoskote Mudbagal section on NH-4 in the state of Karnataka on build on BOT basis.

Canada's 3rd largest integrated steel producer Sault Saint Marie Ontario based Algoma Steel Inc confirmed that it has been approached by and has entered discussions with a third party regarding a possible acquisition of the company without identifying the potential buyer

Algoma, which restructured under bankruptcy protection twice since the early 1990s, put itself up for sale 2 years ago but decided to take itself off the market after failing to get a price it felt valued the company fully. Instead, it spent hundreds of millions of dollars to buy back shares and made other moves to help boost the company's stock price.

Algoma employs about 3,000 people and generated a 2006 profit of USD 221.8 million and 2005 earnings of USD 239.6 million. Algoma has a stock market value of more than USD 1.4 billion so a friendly takeover might have a price tag approaching USD 2 billion in the current hot market for steel stocks.

Algoma shares have surged as rumors circulated that several companied from US, Russia, Brazilian and Indian companies were set to make a takeover bid for it.

According to statistics from customs, China exported 4.38 million tonnes of steel products in January 2007 up by 141.99% YoY as compared to January 2006 but down by 21.08% MOM as compared to December 2006.

On other hand China imported 1.48 million tonnes of steel products in January 2007 down by 5.73% YoY as compared to January 2006 and down by 1.33% MOM as compared to December 2006.

As a result, Chinas net export of steel during January 2007 amounted to 2.9 million tonnes up by 1108.33% YoY and down by 28.4% MoM

All values in million tonnes
MoM change is with respect to December 2006
YoY change is with respect to January 2006

The situation for export import of semis is as under

All values in million tonnes
MoM change is with respect to December 2006
YoY change is with respect to January 2006

(Sourced from MySteel.net)

The United States alleged the Chinese government is providing subsidies to its steel industry that violate World Trade Organization rules, fuel an excessive expansion of that sector and negatively affect the United States and other countries steelmakers.

Mr Franklin Lavin under secretary for international trade told a steel industry gathering that US administration is concerned about the state supported expansion of the Chinese steel industry and problems such rapid growth creates. Mr Franklin Lavin said For example, the Chinese government returns to exporting companies 50% of their income taxes if they sell 70% of their product abroad.

Mr Lavin said that Chinas steel production has more than doubled over the last four years to 418 million tons in 2006, making China the worlds largest steel producer and exporter. He said But more worrying than its current huge output is Chinas planned further expansion of its steel industry, he said, which could bring that nations total production capacity to more than half a billion metric tons in the next few years. So far the administration has not seen any evidence that the Chinese are planning any closure of inefficient steel mills.

Continued expansion of the global steel industry far exceeds the growth in demand for steel products, according to a letter sent to the OECD by six major steel industry groups from the United States, Canada and Mexico. Their estimates show that increases in worldwide capacity might exceed demand by as much as 200 million metric tons by 2008.

Steel industry groups said that planned state supported expansions, particularly in Brazil, China, India and Russia, likely will lead to an increasing number of steel trade disputes and that any slowdown in global growth will only magnify the problem. Steel industry groups also said that overcapacity in one country quickly can destabilize pricing throughout the entire global steel industry because firms with excess capacity have strong incentives to export their excess production.

Russian regulators have given final approval to a deal involving 2 Russian companies that would create the world's biggest aluminum producer. The Federal Anti Monopoly Service agreed in principle in January to clear the deal. It was approved earlier this month by European Union regulators.

FAS said that it had instructed United Company RUSAL to uphold competition by basing its prices on London Metals Exchange quotations with a markup of not more than 4% to 5% for Russian consumers and a markup of 8% to 10% for foreign consumers. The premium on aluminum alloys and wire, representing the LME markup plus transport costs, will not be able to increase by more than 5% per month. The company is also instructed to honor all existing contracts and their terms.

Mr Alexander Bulygin Rusal CEO in a statement released jointly with the other two companies said "Today's announcement is of great significance, supporting the creation of Russia's first transnational corporation and the new leader of the global aluminum industry are now ready to round off the merger and plan to close the deal in the near future."

Under terms of the deal, OAO Rusal, Russia's biggest aluminum producer, will absorb Sual as well as the aluminum assets of Swiss-based commodities trader Glencore. Sual and Glencore will hold 22 % and 12 % stakes respectively in the new company, which would have smelters and refineries across Russia, facilities on 4 continents and produce nearly 4 million tons of aluminum per year, or about 12 % of global output. That would put the new company on pace to surpass the current industry leader US based Alcoa Inc.

POSCO said that it plans to spend KRW 1.4 trillion on building a factory in Pohang by 2010.and plans to shut down an existing factory with an annual production capacity of 2.7 million tons once the new factory begins operation.

The new steel mill will produce 4.65 million tons of steel annually.

Chinas State Environmental Protection Administration has published that 12 projects had been closed down because they were not in line with Chinese government's industrial policies and environmental protection requirements. Mr Pan Yue VP of SEPA said that Chinese government would never approve these projects even if they were rectified and improved.

These 12 projects were high energy consuming and high polluting.

1 Ferroalloy project with annual capacity of 200,000 tons at Baotou in Inner Mongolia Province

2 Steel making furnace of Hangda Iron & Steel Co Ltd at Changshu in Jiangsu Province

3 Coke project of Hengchen Coke Co Ltd at Yantai in Shandong Province

4 Environmental protection establishments for special ferrosilicon production of Ping'an Special Ferrosilicon Co Ltd at Haidong region in Qinghai Province

5. No 2 coke oven of E'shan Tianda Trading Co Ltd at Yuxi in Yunnan Province

6 Third stage vanillin capacity expansion project of Changbaishan Jingxi Huagong at Jinlin in Jinlin Province

7 Coke project of Lvzhou Agriculture Development Co Ltd at Fuyang in Anhui Province

8 Wine project in Gujing Town of Qiaocheng District at Hangzhou City in Anhui Province

9 Alkaline salt project of Lvdi Co Ltd in Tongbai County at Nanyang City in Henan Province

10 Steel project of Xinlian Iron & Steel Co Ltd at Tangshan in Hebei Province

11 Steel project of Bapue Industrial Group Co Ltd at Tangshan in Hebei Province

12 Steel project of Luannan Huarui Iron & Steel Co Ltd at Tangshan in Hebei Province

(Sourced fromMysteel.net)

Ryerson Inc has reported that sales of USD 5.9 billion for 2006 up by 2.2% YoY over 2005. Its profit was USD 71.8 million down by 26.8% YoY as compared with USD 98.1 million in 2005 up by 9% YoY.

Ryerson recorded a net loss of USD 4.4 million in Q4 of 2006 as compared with a profit of USD 6.3 million in Q4 of 2005. Its sales in the Q4 of 2006 were USD 1.4 billion.

Mr Neil S Novich CEO of Ryerson said that Fourth quarter 2006 volume, as anticipated, reflected the typical year end slowdown, exacerbated by high inventories in a variety of products throughout the supply chain. Additionally, this excess industry wide inventory, coupled with an extraordinary run up in stainless steel prices, due to nickel surcharges exerted margin pressure in the quarter."

Industry experts have said that potential takeover bids of Alcoa Inc by BHP Billiton Ltd or Rio Tinto were unlikely because of the US aluminum producer's company dynamics, cost factors and increasing Chinese competition. Analysts said they doubted a bid was likely as both BHPB or Rio Tinto are focused more on the mining and raw materials end of the business than downstream industries like the manufacture of aerospace equipment and auto parts.

Mr Craig Campbell an analysts with Morgan Stanley said that "I think the downstream assets make it all too hard. To be honest, I don't put any credence in these rumors."

Mr Steve Bartrop an analyst of Stock Resource said BHP's existing Australian aluminum assets could see the miner face antitrust issues if it made a bid for Alcoa. He said There is little benefit for BHP in investing in Alcoa's US aluminum smelting operations when it has its own low cost operations in Mozambique, South Africa and Brazil. It doesn't make much sense to buy higher cost smelters in the US even with the proximity to market.

Analysts at the UK based independent investment banking and brokering group, Numis said that the miners may have considered Alcoa in the past, but that such a bid was now doubtful. The analyst said "We are not convinced the value case relative to other options will be easy to make and, on balance, believe it is unlikely."

Global investment bank UBS said both miners have the cash and flexibility to launch a takeover, but that the timing could be questionable, with China providing increasing competition in aluminum production.

The rumors were sparked after a report in the Times newspaper saying that BHPB and Rio were considering offers of up to USD 40 billion bid for Alcoa.

Maanshan steel has announced that its new 3600 cubic meter blast furnace A at new came on stream successfully. The B blast furnace will be put into operation this April.

Maanshan new area building, including two 3600 cubic meter blast furnaces and supported facility, has Huatian Engineering & Technology Corporation, China Metallurgical Construction as the contractor.

With estimated fund of CNY 2.898 billion put into the whole project, each single blast furnace will smelt iron of 3.25 million tonnes per year.

(Sourced from MySteel.net)

Roche Bay plc and Advanced Explorations Inc have signed a JV agreement to undertake the required work to complete feasibility studies and exploit Roche Bay's extensive magnetite iron deposits at Nunavut in northern Canada.

The agreement gives AEI an option to acquire up to a 50% equity interest in Roche Bay's Eastern deposits is subject to several conditions based on operational milestones being achieved and to become operator of the exploration and construction project where AEI assumes responsibility for raising financing and managing the completion of feasibility studies.

Once these are completed, the agreement provides for formation of a joint venture, for which AEI will be responsible for the financing, design, build and operation of a mine and plant producing at least 6 million tonnes per year of iron concentrates or pellets.

Mr Benjamin Cox CEO of Roche Bay said Having considered a number of options on the best way forward, we have been very impressed by AEI's approach and believe that this long-term relationship will deliver considerable value to all the stakeholders in Roche Bay's development."

Mr John Gingerich chairman of AEI said "While there is a significant amount of work to be achieved ahead of delivering a full feasibility study, investigation and tests to date point to Roche Bay having all the hallmarks of a very exciting project, given the potential size, location and accessibility of the deposits. We are very pleased to have secured a role in their development and look forward to working further with Roche Bay."

Roche Bay is an emerging iron ore company with a large resource base in northeast Canada consisting of two groups of ore bodies the Eastern which is the current focus and the Western which will support an inter-generational life of mine. The project's key advantages include its low infrastructure development costs and its ability to ship product to Europe in less than 9 days. The Company is domiciled in Gibraltar. Its ultimate majority shareholder is Borealis Exploration Limited.

AEI, based at Toronto in Canada, has been developing a strategy to leverage its expertise and experience in identifying business opportunities within the petroleum and mineral extraction industries.

Rautaruukki Corporation is further strengthening its position as a total delivery supplier in the construction business by investing EUR 6 million in the production of steel frames at the Ylivieska and Seinoki plants in Finland. An immediate start will be made on the implementation of both investments and extended production will be up and running by the last quarter of this year.

The investments will increase the production capacities of heavy frame structures in Ylivieska and painted steel frames in Seinoki.

Mr Saku Sipola president of Ruukki Construction said "Our response to the increasing demand in bridge and building construction is to strengthen local production throughout our operating area, also in Finland. These investments will speed up our growth as a total delivery supplier in the construction business, especially in the Nordic countries, where Enlargement of the Ylivieska plant will increase production of the heavy frame structures needed for bridges and large industrial buildings.

Canadas largest producer of metallurgical coal Fording Canadian Coal Trust said that it will face increased competition from lower quality producers and will counter it by providing steel mills with the highest quality of coal available. Fording added that it will spend the next couple of years focusing on branding its highest quality coal.

Mr Boyd Payne CEO of Fording Canadian Coal Trust said many of its customers are using increased levels of lower quality coal in their blends as a way to keep costs down. He said that In this environment, we expect steel mill requirements for the highest quality hard coking coals will remain very strong. High quality coking coal allows the mills to blend lower quality coals and still produce good quality coke at a lower average cost.''

Mr Payne said ''What we're up to, in fact, is examining our entire resource base and looking from a quality perspective at where we go. We have initiatives in place and we are working towards creating a much better known, better respected high quality hard coking coal.'' He added that more than 90% of Fording's coal was already hard high quality.

Elk Valley Coal which is owned 60% by the trust and 40% by base metals giant Teck Cominco will increase its focus on producing consistently high quality products. These changes in the metallurgical coal business were apparent in the 6% drop in annual sales volumes to 13.6 million tonnes as customers substituted their requirements with lower quality coals. The lower sales corresponded with a significant weakening in coal prices, which averaged CAD 123 per tonne in the fourth quarter down from CAD 154 per tonne a year earlier.

It is reported by local media that Mechel Targoviste will commission a new continuous casting installation on March 6th 2007 following a USD 14 million investment that is part of a broader technological investment plan.

The installation comes with a computer assisted process control solution that enables the production of advanced steel and is the latest technology available on the market.

COS Targoviste was acquired by Mechel International Holdings AG in 2002. Mechel has so far invested over USD 38 million in the works, which reported an output of 466,000 tons of steel last year.

It is reported that subsequent to the installation of Rebox Oxyfuel Solutions by Linde at ThyssenKrupp Steel existing galvanizing line at in Finnentrop, the production has increased by 30%, from 82 tonne per hour to 105 tonnes per hour.

Three meters of the recuperative zone were refitted with a compact 5 MW DFI Oxyfuel unit consisting of four burner row sets. Fuel consumption was reduced by 6 percent and annealing properties over the entire strip width were improved. The strip surface was effectively cleaned from unwanted contaminants such as oil and residues, making it possible to remove a 25 meter strip pre cleaning section.

Direct Flame Impingement Oxyfuel, where the Oxyfuel flames are fired directly onto the moving metal was the chosen Rebox solution for TKS. This drastically increases the heat transfer for more throughputs, without extending the furnace or line.

ThyssenKrupp Steel Finnentrop in Germany produces galvanized strip for use in the automotive, white goods and for the construction industry.

Japanese Maritime Safety Agency announced that a South Korean cargo ship with 11 crew members on board disappeared in the sea off the Japanese coast.

The 2,000 ton ship with a cargo of iron ore was on its way to South Korea's southeastern port of Pohang when it disappeared 7 miles southwest of Daiosaki of Japan.

BHP Billiton's hot briquette iron plant in Port Hedland Western Australia is being demolished where production was stopped in 2004 when a gas explosion killed 1 worker and seriously burnt 2 others.

Mr Mike Buzzard spokesman of BHPB said that Able Demolitions won the demolition tender He said "Able's tender was based on the majority of the HBI facilities being removed as scrap. However, if people are interested in any of the plant and or equipment they can forward inquiries direct to Able

BHP spent 3 years to build and produce the first briquette from the USD 2.4 billion plant and later had to write off the entire value of the plant because of low production and expensive modifications.

Yonap reported that POSCO has signed a deal with Australia's Resource Pacific Ltd for jointly developing a coal mine in Australia

The agreement with the Australian mining and energy exporting company gives POSCO a 10 % stake in the Newpac No 1 Colliery located in New South Wales, where the bituminous mine is estimated to hold 250 million tons of coal, with annual output to reach 4 million tons starting this year.

Ukranian Journal reported that Industrial Union of Donbas has increased sales by 5.2% to USD 3.75 billion in 2006 on the back of higher steel prices.

Mr Valentyn Smirnyahin VP of IUD said that EBITDA grew to USD 719 million in 2006 from USD 607 million in 2005.

IUD is forecasting revenues will grow by 26.2% to USD 4.73 billion in 2007 and that EBITDA will be USD 1.2 billion.

Romanian steel maker UCM Resita reported its net loss of RON 52.914 million for 2006 as compared to net profit of RON 137.165 million in 2005. Its net revenues amounted to RON 121.626 million in 2006 up by 10 55% from 2005.

Sales accounted for 95 31% of revenues, totaling RON 115.931 million and exploitation revenue amounted to RON 125.872 million while expenses reached RON 177.631 million.

Bucharest Stock Exchange listed UCM Resita was taken over by a consortium comprising Swiss company INET and the UCM employees association, following a EUR 13.1 million transaction for 60.67% of the company shares.

United Heavy Machinerys Skoda Kovarny, Plzen sro and Skoda Hute, the members of Skoda Steel consortium are planning to be united to form a single legal entity.

OMZ said the new company will be called Plzen Steel. The creation of a logotype and corporate symbols is under preparation and the final versions of which will be presented in May 2007.

INTERFAX has reported that China National Petroleum Corp will run a natural gas pipeline directly to the Shanghai based BaoSteel to ease fuel supply shortages and promote the use of clean energy.

The pipeline will be an extension of the West East Pipeline in eastern Jiangsu province, which is operated by CNPC, with an annual capacity of 1.2 billion cubic meters.

The new route will mark the start of strategic cooperation in energy security and clean energy between Chinas two state owned giants.