Indias largest domestic steel producer Steel Authority of India Limited is open to exploring foreign acquisitions even though its priority is domestic expansion.

Mr RS Pandey steel secretary on the sidelines of metals conference in New Delhi said that "If there is a good opportunity why should SAIL not explore it they are free to do so. But our immediate priority is to expand operations in India."

Mr Pandey said India's steel production will jump to 80 million tonnes by 2011-12 from an earlier estimate of 65 million tonnes and by 2015-16 India should cross the 120 million tonnes mark and become the 2nd largest producer in the world. He said by 2020 national steel production could reach 180 million to 200 million tonnes depending on the policy environment and industrial expansion.

SAIL recently announced plans to invest USD 20 billion to lift its annual steel output to 40 million tonnes by 2020 from 14 million tonnes at present.

Mr Taslimuddin minister of state for agriculture, consumer affairs, food and public distribution gave away the 13th Rajiv Gandhi National Quality Awards for the year 2006 to 14 manufacturing and service sector industries.

Steel Authority of India Limiteds Bhilai Steel Plant received the award in the Best of All category. In addition SAILs Bokaro Steel Plant was presented commendation certificates under Large Scale Manufacturing Industry Metallurgical Industry categories.

Mr Taslimuddin addressing the awardees emphasized the need for maintaining high quality of products, both for consumer satisfaction and brand image which in turn result in high profits for the company.

The Rajiv Gandhi National Quality Awards is given annually by the Bureau of Indian Standards on the lines of Malcolm Baldrige National Quality Award in the US, Deming Prize in Japan and the European Quality Award.

TATA Steel Ltd announced that TATA Steel UK Ltd, indirect wholly owned subsidiary of the Company has acquired 7,136,094 of equity share capital of Corus Group Plc, UK at 601.75 pence per share recently.

TATA steel UK said with the above purchase it holds 207,092,046 equity share capital of Corus Group Plc, UK.

The National Thermal Power Corporation and Bharat Earth Movers Limited have signed a MoU for a long term mutually beneficial business association through a JV to maximize coal production through deployment of fleet of equipment required for mining and to engage BEML as mine developer and operator for coal blocks owned by the NTPC.

According to a NTPC statement it has been allotted 6 coalmines by the government but still it would require huge quantities of equipment, spares and dedicated services for maintenance in future.

BEML with its vast experience in the area of design development and manufacture of mining and construction equipment shall be a desired partner for joint business development within the framework of a mutually agreed business policy.

Indian coal-producing states are poised to reap an annual bonanza of INR 711 crore based on the 2004-05 production figures as

It is reported that Indias coal ministry has approached the cabinet for raising royalty on coal and lignite which will result in a nearly 24% or about INR 500 crore in notional royalty earnings for coal rich like Andhra Pradesh, Jharkhand, Madhya Pradesh and Chhattisgarh. The new rates will not be applicable to states like West Bengal that levy access on coal.

The royalty rates revision will come into effect only after the Cabinet Committee of Economic Affairs approval and subsequent amendment of the Second Schedule of the Mines and Minerals development & Regulation Act 1957.

The new rates will put an additional burden of INR 64.18 per tonne of steel and INR 5.46 per tonne of cement. On power producers the impact will be a less than a paisa per unit.

As per the proposal the royalty is to be worked out through a mix of per tonne fixed cost and percentage of price from fixed rate currently. For steel grade coal the new formula will be a fixed levy of INR 180 per tonne plus 5% of the price. For semi coking coal it will be INR 130 plus 5% of the per tonne price and for all other grades of coal the 5% levy will be common whereas the fixed levy will vary between INR 55 and INR 90 a tonne.

Along with coal, the royalty for lignite will also be revised, yielding additional revenue of about INR 28 crore per annum for the states which will be an increase of nearly 29%.

The rates of royalty on coal and lignite were last revised in August 2002 and March 2001. Since then, though coal firms have raised prices many times, the states did not benefit much as royalty is levied on per tonne basis.

Steel Authority of India Limiteds Durgapur Steel Plant has recorded INR 200 crore net profits for October to December 2006-07 and INR 400 crore for April to December 2006 up by 109% YoY as compared to INR 191 crore in April to December 2005. DSP's turnover was INR 2,917 crore against INR 2,642 crore during the period under review.

Mr V Shyamsundar MD of DSP said that while the production of hot metal had attained record levels but potential exists for greater output.

DSP with 56% semis in its product mix has already initiated a process to install a 0.7 million tonne bar and rod mill at an estimated cost of INR 738 crore. The plant is now finalizing its roadmap to enhance its production to 3.2 million tonnes of hot metal and 3 million tonnes of crude steel as envisaged in the SAIL Corporate Plan scheduled to be completed by 2010 and it is also implementing projects that will help reduce production cost by nearly INR 1,000 a tonne.

Local media has reported that a group of tribal farmers from 3 panchayats in South Kota Mandal in Vizianagaram district staged a protest demonstration in front of the district administration office against the JSW Group's proposal to set up an aluminum factory.

The report mentions as the Left leaders saying that the establishment of the factory would ruin agriculture in the area and water for the factory would be diverted from Thatipudi and Chilakalagedda reservoirs. They said that the revenue officials were trying to acquire 1,264 acres of agricultural land in the three villages for the factory in Vizianagaram district and they would oppose this move.

Initially the factory was proposed to be set up in the vicinity of Sabbavaram in Visakhapatnam district and even a public hearing was conducted. But subsequently the proposal seems to have been shelved.

Jindal Steel & Power Ltd has informed BSE that it has purchased 28,000 equity shares of USD 1each in Globeleq Singapore Pte Ltd UK recently and with this purchase the JSPL now holds 40% in the share capital of Globeleq Singapore Pte Ltd.

Globeleq Singapore Pte Ltd and Lanco Infratech Ltd, Hyderabad had formed a consortium and won bid for setting up 4,000 MW Ultra Mega Power Plant in Madhya Pradesh.

Indias Central Electricity Regulatory Commission has suggested that transmission charges between inter state generating stations should be shared on the basis of MW kilometers basis rather than MW to resolve issues of sharing costs in transmission systems.

CERC in its discussion paper outlining measures for rationalization of transmission tariff and apportioning of transmission losses said that "The concept of sharing transmission charges on MW kilometer basis would be particularly helpful in finalizing transmission schemes associated with ultra mega power projects and hydro power projects in the North East."

CERC added that "The charges for Associated Transmission Systems for the new inter state generating stations would be shared taking into account the quantum of power MW as well as the distance involved kilometer for each beneficiary.

CERC however has suggested that the existing concept of pooling the transmission charges at the regional level and their sharing in the ratio of quantum of power allocation would not be abandoned for the existing transmission schemes built over the last 30 years and the inter connecting transformer and downstream transmission systems would be segregated and taken out of the regional transmission pool.

Shapoorji Pallonji Groups Afcon Infrastructure Ltd is reported to be considering acquisitions and JV with overseas firms, which would be a strategic fit in its existing business.

Mr K Subrahmaniam MD of Afcon said that We are exploring possibilities in the pipeline and offshore business in the oil and gas sector.

Afcon is one of the well known players in marine engineering port related infrastructure but is not present in the pipeline laying work offshore and onshore which has lot of potential in coming years.

Mr TR Baalu union minister of Shipping, Road Transport and Highways while addressing the Parliamentary Consultative Committee meeting said that the ministry of shipping plans to set up a maritime university with its headquarters in Chennai and campuses in Kolkata, Mumbai and Visakhapatnam.

Mr Baalu informed that this would be done through an Act of Parliament and a bill in this regard would be introduced in the next session of the Lok Sabha.

Algoma Steel Inc announced that that it is in discussions with German steel company Salzgitter AG regarding the possible acquisition of Algoma.

Algoma said that the discussions are at a very preliminary stage and there can be no assurance that an acquisition will take place and there is no agreement as to the price at which an acquisition would be made if it does take place. Algoma said that if agreement is reached, the price for the shares is likely to be below the level of the current trading price of the shares.

Salzgitter AG also confirmed that it is in discussions with Algoma Steel Inc regarding the possible acquisition of the Canadian steel producer. It said The discussions are at a very preliminary stage. There can be no assurance that an acquisition will take place. Furthermore there is no agreement as to the price at which an acquisition would be made if it does take place.

Arcelor Mittal has signed a 51:49 JV agreement with the Bin Jarallah Group of companies for the design and construction of a seamless tube mill at Jubail Industrial City in Saudi Arabia. The construction is planned to commence at the end of the first quarter of 2008 and to be completed by the last quarter of 2009.

The mill will have a capacity of 500,000 tons per year and about two thirds of its capacity will be used for tubes used in the oil industry and the remainder for line pipes in sizes ranging from 4" to 14". Semis for the mill will be sourced from Arcelor Mittal steel plants.

Arcelor Mittal will have management and operation rights. The mill will partially be funded by the Saudi Investment Development Fund. Arcelor Mittal will apply for an investment license under the Foreign Investment Regulations of The Kingdom of Saudi Arabia.

Bin Jarallah Group is located in Jubail Industrial City, north of Al Jubail on the Persian Gulf.

Smart group has announced that it is planning to invest about USD 1 billion into the reconstruction of Makiyivka Metallurgical Plant in order to improve its production efficiency and increase the plant's output capacity.

Mr Ihor Smiyanenko GD and board chairman of Smart group said that the development plan foresees the construction of its own sinter plant, a blast furnace, the modernization of its steel smelting facilities and the complete reconstruction of the plant's energy system.

Mexican mining workers announced that they will go on a symbolic strike on February 19th 2007 to mark the first anniversary of a coal mine explosion that killed 65 men.

The union in a statement said that workers across the country would walk off the job to pressure the government to punish Grupo Mexico, the owner of the Pasta de Conchos coal mine which exploded on February 19th 2006. The union did not say if the strike would last more than one day nor did it specify how wide it would be.

The Mexican miner union is currently split in two factions and it is not clear how many workers will join the stoppage.

As per Chinas General Administration of Customs, China exported a total of USD 86.62 billion worth of goods in January 2007 up by 33 % YoY and imports for January reached USD 70.74 billion up by 27.5 % YoY.

The trade surplus hit USD 15.88 billion in January 2007, piling pressure on the government which has made it a priority this year to reduce the imbalance. The figure was a 65% rise YoY, although it dropped markedly from USD 21 billion in December.

Officials attributed the YoY increase to seasonal factors and because Spring Festival, which sees considerably less trading businesses, was in January last year.

Total trade between China and the European Union, USA and Japan reached USD 26.46 billion, USD 23.43 billion and USD 17.51 billion, respectively, representing YoY gains of 37.9 %, 27.8 % and 26.5 %.

SteelBenchmarker has reported hot rolled band spot price for February 12th 2007 as under

1 US
USD 580 per metric ton
Up by USD 9 per ton or 1.6% from USD 571 two weeks ago
Down by USD 118 per ton or 16.9% from the peak of USD 698 on July 24th 2006

2 World Export Price
USD 535 per metric ton FOB the port of export
Up by USD 30 per ton or 5.9% from USD 505 two weeks ago
Down by USD 75 per ton or 12.2% from the peak of USD 610 on June 12th 2006

3 Western Europe
USD 613 per metric ton EXW
Up by USD 20 per ton or 3.3% from USD 593 two weeks ago
Down by USD 18 per ton or 2.8% from the peak of USD 631 on July 24th 2006

4. China
USD 437 per metric ton EXW
Up by USD 14 per ton or 3.3% from USD 423 two weeks ago
Down by USD 27 per ton or 5.8% from the peak of USD 464 on June 12th 2006

SteelBenchmarker publishes steel benchmark prices for hot rolled band, cold-rolled coil, rebar, and standard plate in the US, Western Europe, mainland China, and the world export market twice each month.

Shenhua Energy Co Ltd produced 13.1 million tonnes of the coal in January 2007, which would help it reach targeted growth of about 17% YoY in first quarter of 2007 as compared to 11.3% YoY growth in the first quarter of 2006.

Shenhua sold 16.4 million tonnes of coal in January 2007 as domestic demand from power suppliers and steelmakers propped up and are likely to post about 20% YoY growth in sales in first quarter of 2006.

Shenhua is likely to exceed its production target of adding at least 15 million tonnes of coal output in 2007 increasing about 11% YoY from 136.6 million tonnes in 2006, which witnessed 12.5% YoY growth over 2005.

CVRD said that they are studying partnerships with steel makers in Russia but does not view the country as key to its expansion.

Mr Peter Poppinga MD of CVRD International SA at a metal conference said that there are some opportunities in terms of acquisitions and going upstream, but we don't have a specific strategy to be a big player in the CIS.

Mr Peter however added that If we were to be approached by CIS steel companies wanting partnerships, we are ready to study them and we are studying one or two of them. But we don't see any need to look to the CIS as though it would be a new China for us.

Russia is the world's 4th largest steel producer but 3 of the country's top four steel makers, Evraz Group, Severstal and NLMK supply most of their own iron ore and only MMK imports most of its iron ore requirement from Kazakhstan.

Techint Technologies has taken the strategic decision to change name into Tenova to have an independent strong identity on the market following a period of fast growth pulled by the excellent market momentum and the successful completion of several M&A activities.

The new name Tenova wants to keep, through the prefix Te, a strong link with the Techint Group and with Technology, both at the root of its existence, and, through the word nova, a clear commitment to innovation essential for a company supplying advanced technologies.

Tenova is a network of companies providing integrated solutions for complete process area fully integrated EAF steel making to liquid steel thermal processing from reheating to heat treatment of high quality flat and long products processing of metal strips from hot strip mill down to all final products fully automated roll shops for hot strip and cold mills handling, storage, loading and unloading of bulk materials from mines to the end users of iron ore, coal, bauxite, and others. Tenova employs 1600 people in 20 operating companies in 14 countries on the five continents.

Techint Technologies is a supplier of advanced technologies, products and services for the metal and mining industries.

Chinese government has committed to using renewable energy sources to generate 13% of its overall power requirements by 2020 with a cumulative target of 400MW of PV solar installations to be completed by 2010. To support this growth, the Chinese government has allocated USD180 billion to be invested from 2006 going forward.

According to the 2005 International Energy Outlook report, global energy consumption is expected to increase from 11GWH in 2000 to 26GWH by 2025. Most of this energy is currently generated from traditional sources of energy such as coal and oil. Unfortunately, there are numerous issues with the use of traditional energy sources, as these resources are slowly being depleted or are more costly to obtain, thereby driving up the cost of energy prices significantly and traditional energy sources also have the potential to harm the environment significantly.

Amur Minerals Corporation has announced that it won an auction for the right to explore and extract nickel, copper, platinum and associated metals at the Kustakskaya property. Amur Minerals paid RUB 6.3 million for the license.

The property is located to the east of Amur's principal Kun Manie nickel copper project in Russia's Amur region.

It is reported that BHP Billiton and Rio Tinto have temporarily halted operations in Guinea due to growing security fears and have flown about 20 and 60 staff members respectively out of the country. BHPB is working on it taking a lead role in a USD 2.3 billion bauxite and alumina project whereas Rio is involved in its Simandou iron ore project potentially worth USD 2 billion.

As per reports, operators in Guinea's bauxite and alumina industry, including Alcoa and Alcan, have also scaled back operations pending an improvement in security.

The declaration of martial law by Mr Lansana Conte president of Guinea to quash violent protests against his 23 year rule has put the ambitions in that country on hold more than 80 deaths in the government crackdown on protesters.

Guinea is reported to have a third of the world's bauxite resources.

Churchill Mining PLC announced that it has signed an exclusivity agreement with PT Techno Coal Utama, allowing Churchill to conduct due diligence on a thermal coal project in the East Kutai Regency of Kalimantan in Indonesia.

Churchill said that studies conducted by a consultant identified numerous outcrops of coal in the area, which range in thickness from two to seven meters. It added that it was prompted to verify the prospect following a discovery called Pakar, which is about 55 kilometers south-west of Churchill's ground. As of December 2006, the Pakar project had a JORC compliant resource of 3.3 billion tonnes of thermal coal.

Churchill will continue looking for more prospects through 2007, it added that the East Kutai verification can be comfortably funded from existing cash reserves.

Frenchs Air Liquide announced that it had signed a 20 year agreement to supply industrial gases to a Thyssenkrupp unit in Brazil. Air Liquide gave no financial details, only saying this was a major new project.

As per agreement, Air Liquide Brazil will build and operate air separation units owned by Air Liquide and Praxairs subsidiary White Martins to supply the steel mill with the industrial gases, primarily oxygen. The units will also supply blast furnace air and compressed dry air to the steel complex.

Chinas People Daily reported that a number of Chinese coal mines continue to operate despite receiving closure orders from the government in response to poor safety standards.

The government has given closure orders to a number of small coal mines in the past few years in an effort to reduce the death toll in Chinas mining industry the deadliest in the world. However some mine owners have avoided the closure orders by merging with other collieries the report added.

The major coal producing province of Shaanxi was meant to have shut down 80 mines in recent years but only 44 have since been closed, leaving the remaining 36 open and waiting to be reorganized.

American Railcar Industries Inc has posted revenue of USD 646.1 million for 2006 up by 6.23% YoY as compared to USD 608.2 million for 2005. Its net earnings attributable to common shareholders in 2006 are USD 34.6 million as compared to USD 1.5 million in 2005.

ARI shipped 6,947 railcars in 2006, 72 more 6,875 that were shipped in 2005. The increase in railcar deliveries was significant in light of the four month shut down and repairs of the tank railcar manufacturing plant in 2006 due to tornado damage.

Mr James J. Unger president and CEO of ARI said We recorded its best financial performance ever in 2006. We are very pleased to have achieved this result in spite of the tornado that struck our tank railcar facility, that we achieved record revenues and earnings and maintained a very strong backlog of 16,816 railcars as of December 31st 2006.

American Railcar Industries Inc is a leading North American manufacturer of covered hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non railcar industrial products produced by others.

Massey Energy Inc said that nonunion mines can produce more coal for less money than union operations. Mr Don Blankenship CEO of Massey Energy during an administrative trial said that he tells Massey stockholders that 97% of the company's mines are nonunion.

Mr Blankenship also said that he tells stockholders that his companies can produce more coal for less money because they avoid the legacy costs associated with union mines. Mr Blankenship defined legacy costs as the costs to pay union retirees their benefits and health insurance.

Mr Blankenship said in an earlier interview that he understood the need for the union during the 1920s when workers had no rights and did not even live in their own homes, but he went on to say that the union became counterproductive in more recent times.

The National Labor Relations Board has alleged that Massey broke labor laws at an eastern Kanawha County mine that it bought out of bankruptcy in late 2004. The NLRB alleges that Massey refused to hire former Cannelton Mine workers who were union members so it would not have to recognize the United Mine Workers and negotiate a contract with the union. The NLRB is asking an administrative law judge to require Massey to restore the working terms and conditions in effect when the mine was owned by Horizon Natural Resources.

Ukrainian System Capital Management has announced that it may resort to massive borrowing and other transaction this year.

Mr Roman Vodolazsky financial director of SCM said that Don't be surprised when you hear about billion dollar deals by our company."

Australian Bass Metals expects to gain approval for an open cut mine in Tasmania's North West by next week.

Mr Mike Rosenstreich MD said that Environment Department is considering final approval of the project next week and no objections have been lodged so far.

He said We don't expect any surprises at this stage, and had good relations or contact with the people involved in that and shortly thereafter we anticipate the final approval from the Waratah Wynyard Council and they have certainly been very supportive to date, they have been at the site and we do not anticipate any problems with that."

Bass Metals is excavating 2,000 tonnes of zinc, lead and silver from Que River to test its quality and a full mining operation could have a 5 year life span.

President of Huazhong University of Science and Technology and GM of Wuhan Steel Group signed an agreement for cooperation in technical innovation, talent training and exchange.

The two sides will push on integrity of production, study and research and mutual innovative capability. Hust aims to provide technical support and cultivate special talents for the corporation while Wuhan Steel meanwhile serves as the base for technical fruits transforming and the students training practices.

Since the 10th five year plan period, Hust has teamed up with a string of domestic large and medium scale enterprises.

(Sourced from Mysteel.net)