Indian media is abound with news and stories that who will acquire Mitsuis 51% stake in Indian iron ore miner Seas Goa.

Media reports citing sources close to the deal mention that six bids were submitted in the second round by Arcelor Mittal, Rio Tinto, BHP Billiton, JSW Steel, Sterlite Industries and Essel Mining in the range of INR 2,200 to INR 2,500 per share. The second round of bidding closed at 4 PM on Monday.

Mitsui is expected to short list two or three of the highest bidders and call them for the third round shortly in which it will give access to its production plants for due diligence.

Sesa Goas majority stake holder Japanese Mitsui & Co had set February 19th 2007 as a deadline for submission of bids for its 51% stake by various interested players. Mitsuis advisor Morgan Stanley is likely to take a fortnight after the submission of bids to select the winning bidder. Once the bidder has acquired Mitsuis 51% stake, it will have to make a 20% open offer for the other shareholders of Sesa Goa.

JSW Steel Ltd announced that it shut down one of its blast furnaces for 30 to 60 days for repairs after a fire broke out. This furnace accounts for 20% of the company's total hot metal capacity.

JSW Steel said that the risks covering the fire and consequential loss of profits are insured and it has approached the insurance company for assessing the loss and lodgment of claim.

ET reported that UK based specialty steel and engineering group Caparo plans to spend over EUR 100 million on acquisitions and Greenfield projects in India after having completed 2 acquisitions in India and starting to set up 8 manufacturing facilities to cater to higher domestic demand in coming years. The aim is to expand Caparos sales in India from EUR 25 million in 2006 to EUR 130 million in 2008.

Lord Swaraj Paul told ET that Ive been saying for 25 years that India is going to be a big manufacturing country and it is now coming true. He said India expansion would not detract from Caparos operations elsewhere production from Caparo in India would be channeled to the companys existing customers in the vehicle industry.

Lord Paul told I believe vehicle production in India now about 1 million a year will rise by a minimum of 5% to 10% a year in the next few years as local demand for cars and trucks expands.

Caparo already operates 4 facilities in Indian and its new 8 facilities are coming up in Chennai, Pitampur, Bawal, Noida and Gurgaon. In addition Caparo has recently completed the acquisition of the sheet metal business of International Auto and had acquired the assets of Steel Tubes of India last year.

The Visakhapatnam port successfully navigated a Panamax vessel MV Golden Gun into the inner harbor last week for the first time in its history on experimental basis and the vessel berthed at EQ7 berth with 8.6 meters draft.

MV Golden Gun is a geared 72,000 DWT Panamax vessel with 225 meters LOA and 32.26 meters beam. It was carrying LAM coke and arrived at the port on 13.2.2007 and berthed at GCB berth in outer harbor and was to inner harbor only after discharging part cargo to reduce draft requirement.

The entrance channel to the inner harbor is one of the narrowest in the country, with many bends and curves, thus restricting the entry of Panamax vessels into the port. To overcome the constraint Vizag port has spent INR 25 crore on deepening and widening the channel and turning circle which started in August 2005 and is likely to get completed by March end to provide 11 meters draft in the channel.

As a result, From April 1st 2007 Vizag port will be able to handle the Panamax vessels in the inner harbor at four berths, reducing the congestion at the general cargo berth in the outer harbor.

Business Line reported that Indian coal ministry wants Indian Railways to bear losses in transit of coal to power stations in excess of 0.5% by inserting a clause to this effect in the tripartite agreement that is to be signed between Coal India Limited, National Thermal Power Corporation and Indian railways.

Coal Ministry has suggested that transit loss should be worked out rake wise based on the readings of the weighbridges of coal companies and also power plants that would have to allow weighing of rakes at both the loading and unloading ends at CIL and NTPCs power plants respectively.

The tripartite agreement is aimed at ensuring regularity and committed quantities of coal supplies to the power plants run by NTPC and spell out the responsibilities of the Railways in clear terms. The agreement aims to fix responsibility on the issues of quantity and quality of coal and timely delivery.

Larsen & Toubro Ltd announced that it has bagged a contract valued at approximately USD 0.25 billion from Maersk Oil Qatar for its Block 5 development in Qatar consisting of 2 new offshore platform top sides, a flare platform and interconnecting bridge amid stiff international competition from contractors from western countries. The project is to be executed in 28 months.

The Block 5 Package 14 project consists mainly of two 2300 tonne topsides with facilities for oil production and export.

L&T said that this is one of its largest overseas project orders.

Qatar, with its abundant resources, besides Saudi Arabia and UAE, is home to many upstream oil & gas projects promoted jointly by Shell, ExxonMobil Occidental and other oil majors.

Statesman News Service has reported that Orissas Confederation of Captive Power Plants has urged Orissa Electricity Regulatory Commission to scrutinize transmission networks which are often not available for open access to wheel power by captive generators to sell to highest bidders.

As per reports, captive power plants in Orissa want to sell power to consumers both within and outside the state as per market rates and demand but frequent non availability of power corridors and other transmission constraints deny them this opportunity and as a result not even 1 % of the power generated in Orissa is being allowed to be sold outside the state.

The CCPP is an association of 15 large and mega captive generating plants having 33 % of the Orissas installed capacity.

Nepal has an estimated hydropower potential of 100,000 MW but so far only a small portion has been harnessed due to resource constrains with the Nepalese Government. To overcome this situation, Nepal government has decided to develop this potential through private partnership route.

Mr Ram Sharan Mahat finance minister of Nepal while talking to Business Line on the sidelines of the Second SAARC Business Leaders Conclave said that the sector is opened to private participation and a number of Indian companies have also shown keen interest in developing Nepals hydropower sector. He informed that bids for Upper Karnali, Arun-III and Budhi Gandaki projects have already been called that the bids would be opened in a few weeks.

As per reports, several Indian companies including Reliance Energy, GMR Group, TATA Power, L&T and the J P Group have shown interest in developing some of these projects.

Russian media has reported that Gazmetall of Russia of has reached an agreement for strategic cooperation with Industrial Union of Donbass of Ukraine under which merger is likely after evaluation of assets to determine parameters of the future deal. Gazmetall annually produces more than 6 million tons of steel and with over 9 million tonnes of Industrial Union of Donbass, the consolidation would make Gazmetall and IUD into the biggest metal company of Russia.

Russian Vedomosti quoted Mr Maxim Basov GD of Gazmetall as saying "IUD and Gazmetall have agreed to strengthen their cooperation in commercial, financial, investment and strategic matters. The agreement could be the first step towards consolidation. Mr Basov also told Russian Kommersant that the two firms had created working groups to consider possibilities for integration and that in the next few months, the conclusions and recommendations should be presented to shareholders of both companies.

Established in December 1995, the Industrial Union of Donbass is one of the largest companies in Ukraine with majority holding of Mr Sergey Taruta and Mr Vitaly Gaiduk. IUD controls more than 40 companies in Ukraine and in other countries operating in metallurgical, mining, engineering, food manufacturing industries and in the agricultural sector. Its major enterprises are at Dneprovsky, Alchevsk and Kramatorsk. It also owns the Dunaferr and DAM Steel plants in Hungary and Polish steel mill Huta Czestochowa.

Gazmetall, half owned by Mr Alisher Usmanov, controls Lebedinsky and Mikhailovsky Mining & Processing Enterprises, Urals Steel and Oskolsky Electrometallurgical Works in Russia.

MEPS has reported that on the backdrop of strong demand for strip products in most EU countries, coupled with higher import offers in compression to those quoted at the beginning of the year, several domestic producers are talking of higher prices in the second quarter although official announcements by are still to be made.

MEPS said that demand and stock levels are satisfactory at the distributors in Germany but order intake at the mills is slower than expected and domestic producers have made clear their intentions to go for a hike during the negotiations which will commence at the end February or early March.

Similarly mill prices in the French market started increasing in the latter part of January as demand improved and the rises are continuing in February but resellers have not yet managed to pass the increase to their customers. MEPS said that French producers are now reported to be looking for new basis price hikes of EUR 10 to EUR 15 per tonne for the second trimester but it is too early to say to what extent they will be implemented.

MEPS added that Italian strip product values have improved, albeit only by small amounts, due to higher import offers and redued offerings from China because of good internal demand and threats of anti dumping measures by Eurofer coupled with higher raw material costs. In all, stocks are in balance and market sentiment is much better in Italy.

MEPS said that Belgiums domestic values have started to firm for March deliveries because import offers from Chinese suppliers are more highly priced than before Christmas. In addition stocks are depleted because many service centre buyers, expecting prices to continue to slide during the first quarter, waited before placing orders. In all, distributor business is brisk.

In case of Spain, MEPS said that strip product inventories at service centers have been significantly reduced during the last two months and are now at satisfactory levels. Currently, demand is quiet as end users have also been destocking. However, since early February, distributors report better resale prices as earlier their margins were very poor. Large tonnages of third country material have been ordered but current price offers are strengthening.

Australian zinc miner Zinifex Ltd today made a non binding all cash bid for Canadian explorer Wolfden Resources Inc valuing the company at CAD 345.7 million. The bid is for all of the outstanding common shares of Wolfden and values each at CAD 3.9 per share. Wolfden has 88.6 million shares outstanding and 2 million warrants.

Canadian based Wolfden Resources Inc announced that it has entered into a letter agreement with Zinifex Limited whereby Wolfden has granted to Zinifex an exclusivity period in which to complete due diligence and has agreed not to solicit other proposals subject to the exercise by the Wolfden board of directors of its fiduciary duties.

Wolfden agreed to grant such exclusivity period upon having received an expression of Letter of Interest from Zinifex in the form of a non binding and conditional proposal for the acquisition of all of the outstanding common shares of Wolfden, for a cash price of USD3.90 per share including shares issued or issuable upon the exercise of Wolfden warrants and stock options.

Mr Ewan Downie CEO of Wolfden Resource said that Zinifex is a great company but one that had a low profile in North America. He believes that Zinifex has the financial ability to push projects such as ours forward."

Wolfden is a Canadian based mineral exploration and development company with a diversified portfolio of advanced stage properties and several ongoing exploration programs in Canada. Wolfden owns the High Lake and Izok deposits.

China Iron and Steel Industry Association have formally appointed Mr Zhang Xiaogang GM of Anshan Iron & Steel Group Corporation as its new president replacing Ms Xie Qihua who has recently relinquished as head of BaoSteel.

As per the policy framework of CISA, heads of Baosteel Group Corporation, Anshan Iron & Steel Group Corporation, Wuhan Iron and Steel (Group) Corporation and Shougang Group assume the post of CISA president for a two year term in turn.

The Australian newspaper The Age reported that 14 Australian junior iron ore explorers have formed the Pilbara Iron Ore Alliance to lobby for access to infrastructure including the massive port and rail networks of mining giants BHP Billiton and Rio Tinto and investment to unlock hundreds of millions of tons of iron ore resources in the Western Australian region.

The alliance would deal with issues such as rail hauling, permits, community consultation and common use infrastructure on a common platform and also allow companies to share their knowledge and help each other to begin mining.

As per report, the new alliance includes Aquila Resources, Aurox Resources, Ausquest, Australian Resources, BC Iron, Cape Lambert Iron, Cazaly Resources, Echelon Resources, Ferraus Resources, Iron Ore Holdings, Polaris Metals, United Minerals Corp, Yilgran Mining and Atlas iron.

At a meeting at the West Perth headquarters of the Association of Mining and Exploration Companies last week, representatives from the 14 iron ore juniors met to formulate the agenda and core objectives of the alliance.

Notable by its exclusion from the meeting was Fortescue, which has championed the battle to force open the Pilbara rail networks of BHP and Rio, and has pledged to make its own port and rail assets open to third-party users. It is believed Fortescue was not invited to join because it is an infrastructure owner in its own right, and will be one of the parties likely to be in negotiations with alliance members to transport ore from their respective operations.

The Pilbara Iron Ore alliance is expected to use a similar strategy to the Geraldton Iron Ore Alliance which presents a united voice for start up iron ore miners in the Geraldton and Mid West region of Western Australia.

On the backdrop of threats of antidumping investigation by EU and USs anti subsidy appeal at WTO, China's steel industry is anticipating further export rebate cuts in anticipation but some analysts feel that export rebate cuts would have limited effects in reducing the export volume. It's thus deemed steel export should be managed by setting qualifications as would be done on import of iron ore, in order to curtail export, correct disordered competition and irrational export structure.

The analysts say China's export is determined by international demand rather than export tax. Analyst said further adjustment of export rebate only has no associates with environment protection policy and cannot help export high end products or uphold advanced capacity. As a result, the backward and environment pollution unwary small mills are stimulated to export low end products, even cause vicious competition on international market by lowering the prices.

Therefore, setting up threshold standards for steel exporter would be more operable. With iron ore import policy as an example China's steel export should also go through qualification examining, in terms of export volume, environment protection condition, whether in line with national industrial policy so as to prevent domestic outdated capacity from growing.

(Source from Mysteel.net)

Australian OneSteel Ltd announced that it's net profit during July to December 2006 is up by 16.8% to AUD 98.2 million. OneSteel said that it is comfortable with the current market outlook for its full year net profit.

OneSteel said that "The mining and resources segments are driving domestic activity, along with solid nonresidential and engineering construction markets. These continue to offset softness in the manufacturing, automotive and residential and drought affected rural segments."

Mexico's mine union said that almost all of the Mexican mines and metals plants were shut as workers took part in a one day national strike in memory of 65 men killed by a coal mine explosion a year ago.

Mr Carlos Pavon a union leader said that About 90 % of unionized operations were closed by the strike. The miners didn't go to work, they protested with assemblies, religious masses and marches."

But a union leadership conflict meant not all workers across Mexico laid down tools. The union is split into two factions, one of which supports an ousted leader accused of corruption. That faction called the commemorative strike.

Russel Metals reported a nearly 27% drop in October to December 2006 profit as its metals service centers struggled with a drop in demand and lower steel prices. Russel earned a net profit of CAD 30.6 million in Q4 of 2006 down from a profit of CAD 41.8 million. Its revenue during the quarter fell by 8% YoY to CAD 593.2 million from CAD 646.7 million in Q4 of 2005.

Net earnings for 2006 were CAD 159 million an increase of 27% over fiscal 2005 net earnings of CAD 125 million.

Mr Bud Siegel president and CEO of Russel Metals stated that "Overall we don't want to lose sight of the fact that our 2006 annual earnings were our second strongest ever. Fourth quarter earnings reflected lower revenue levels but I was pleased to see our margins remain strong and our EBIT to sales ratio remained at a historical high level in a challenging quarter.

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors under various names including Russel Metals, AJ Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.

It is reported that Pakistan plans to set up a mining company to tap its estimated 184 billion tonnes coal reserves and help meet its growing energy needs.

As per reports, the government has approved PKR 250 million as initial paid up capital for the Thar Coal Mining Company and will offer its shares to local and foreign companies with management control. As per the plan the coal authority in Sindh will have 20 % equity while the federal government will offer its 80 % stake in the company to local and foreign firms.

Thar is Pakistans largest unexploited coalfield. It is spread over 9,100 square kilometers and has estimated deposits of 175.5 billion tonnes. Other large deposits of more than 7 billion tonnes and 1.3 billion tonnes are believed to lie in Sindhs Sonda and Lakhra fields, respectively.

Pakistan produces about 6 million tonnes of coal annually, most of which is consumed by brick kilns. Pakistan is dependent on fuel oil imports to meet its energy needs and has an annual oil import bill of more than USD 6.5 billion.

FIS reported that Russian Steel Industry Company is planning to invest USD 1 billion by 2012.

Steel industrial company said that it intends to open 23 new representative offices in Russia and Kazakhstan and to build up 10 to 12 service metal centers in the major metal consuming cities in Russia and Kazakhstan.

Imported Chinese steel is undermining South Africas domestic steel industry and needs to find ways to become more competitive.

Mr Michael McDonald manager of Steel and Engineering Industries Federation of SA during a hearing of Parliaments finance committee estimated that imports from China were undercutting South African steel manufacturers prices by 15% to 50% and in some cases by more.

Mr McDonald cautioned that In a number of instances imports from China do not meet local standards and in some cases do not even meet compulsory safety standards.

Mr McDonald said that SEIFSA had conducted a survey to determine the extent to which Chinese imports were undermining the competitiveness of local manufacturing to find more effective means of assisting our members to become more competitive and able to survive in what is becoming an increasingly hostile environment.

YIEH reported that Spanish rebar producer Siderurgica Anon is all set to invest USD 150 million to construct 800,000 tonnes per annum new bar mill in Pernambuco province of North Brazil.

The purposed mill will be built in the end of this year and start production in 2009.

Xstrata Nickel has announced a further investment of USD 95 million and the commencement of a pre feasibility study to advance the Kabanga nickel project in western Tanzania. Xstrata Nickel reported that it has completed over USD 50 million in expenditure to update the resource model for the project and preparation of an extensive scoping study.

Kabanga nickel project is among the world's most attractive undeveloped nickel sulphide deposits with a total estimated indicated resource of 9.7 million tonnes grading 2.37 % nickel. It also has a total estimated inferred resource of 36.3 million tonnes grading 2.8% nickel.

Mr Ian Pearce CEO of Xstrata Nickel said that "We are very pleased with the progress occurring at Kabanga which is among the world's most attractive nickel projects. We anticipated good results from our resource estimate update and we received them. We have taken the logical next step of moving this project to the pre feasibility stage and we look forward to the continued development of Kabanga."

Xstrata Nickel which is headquartered in Toronto is the world's 4th largest nickel producer with annual managed production of more than 110,000 tonnes of refined nickel.

Australasian Resources Ltd, following its appraisal drilling, announced that there is an estimated 1.11 billion tonnes of iron ore at its Balmoral South deposit in Western Australia's Pilbara iron ore province.

Australasian Resources said that tests have demonstrated that a high quality concentrate can be produced from the Balmoral South magnetite mineralization and that it is negotiating with several large consortia over long term project development options. It's technical team has visited China to meet with Metallurgical Corp of China to discuss technical aspects of the project's development and has signed a MoU to work together to develop a commercial proposal for the construction of the project.

Australasian acquired part of the southern block of Mineralogy Pty Ltd's Balmoral magnetite deposit last month in a deal. The new deposit lies next to the Balmoral central deposit which is set to be developed by privately owned Mineralogy Pty Ltd in a JV with Hong Kongs CITIC Pacific Investments Ltd.

Terra Nostra Resources Corporation, with its majority stake in a modern 230,000 million tonnes stainless steel casting mill in China and a 150,000 million tonnes value added rolling mill, is well positioned to capitalize upon the growing market of SS in China.

China's stainless steel output for 2006 totaled 5.3 million tonnes up by 67.68% YoY and is expected to further grow by 8% this year as per forecasts.

Terra Nostra is one of the leading copper producers in China through its 51% interest in Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd and is also now emerging as a leading stainless steel producer through its 51% interest in Shandong Quanxin Stainless Steel Co Ltd.

Tanzania Royalty has announced that a decision has been made to commence work on its extensive nickel holdings in Tanzania during the second quarter of 2007.

Tanzanian Royalty seven prospecting licenses represent a combined area of 4,434 square kilometers within the Kabanga nickel belt. One of their prospecting licenses is located within a zone of two parallel magnetic highs that extends down to the Kabanga Nickel deposit, while another license hosts a 50 kilometer long magnetic anomaly with a geophysical signature of similar intensity to Kabanga.

The Kabanga nickel deposit was discovered by the United Nations during the 1970s following a comprehensive geochemical and geophysical program that identified a chain of coincident airborne magnetic and geochemical anomalies within a 20 kilometer to 30 kilometer wide northeasterly trending belt that extends for over 200 kilometers from Burundi in the south, through western Tanzania, to Uganda in the north.

The decision coincides with an announcement by Xstrata and Barrick to proceed with a pre feasibility study for their Kabanga Nickel Project which is situated within the same belt of rocks that hosts Tanzanian Royalty's nickel licenses.

Beicang Iron & Steel Inc announced that due to increase in the total output volume of stainless steel products of Taiyuan Iron & Steel (Group) Company Ltd from 1 million tons to 3 million tons, it anticipates a significant increase in its own revenues. TISCO's increased output is expected to bring a strong market demand for the raw material.

TISCO is one of the largest clients of Pinglu County Changhong Ferroalloy Co Ltd, which annually has provided most of its 400,000 tons of ferrochromium alloy products to TISCO. BEIC, through its wholly owned subsidiaries, provides exclusive management, consulting and other general business operation services to PL in return for a service fee which is equal to 95% of PL revenue, less operational cost and fees.

BEIC is a China based iron and steel raw materials supplier that supplies ferrochromium alloy, among other products, to TISCO. BEIC produces palletized ore and ferrochromium alloy through its two subsidiaries in Shanxi province Fanshi County Xinyu Iron Resource Co Ltd and Pinglu County Changhong Ferroalloy Co Ltd with annual production capacity of 400,000 tons of palletized ore and 40,000 tons of ferrochromium respectively. These two companies are currently operated by Bestlink Management Consulting Co Ltd, a wholly owned subsidiary of Beicang.

Ukrains State Statistics Committee reported that Ukraine GDP increased by 9.3% YoY in January 2007 YoY. As per the report, Ukraines nominal GDP for January 2007 amounted to UAH 44.108 billion and the deflator index of GDP was 114.8%.

The statistics committee said that the locomotives of GDP growth in January were construction, where GDP grew by 26.3%, the processing industry by 18.9% and trade by 13.2%.

The international project management and services company AMEC, has been appointed by the Shenhua Ningxia Coal Group to carry out the initial engineering design for the offsite and utility facilities on a USD1.5 billion coal to chemical production complex in the Ningxia Hui Region in North West China.

AMEC's engineers will provide the basic engineering and design needed to define and integrate all the common, site wide systems required to service the six individual process units within the facility. These systems include power and steam distribution, water systems, flare and fire fighting, interconnecting pipe work, air and gas, site wide instrumentation, control, electrical systems, loading and unloading facilities and storage.

Mr Ross Gibson president of AMEC's China operations said that "The award and successful execution of this contract will further strengthen AMECs expertise as the leading contractor in coal based petrochemical facilities. We have the skills and resources to respond to the challenge and look forward to contributing to the success of this important and prestigious project."

The new facility, which is designed to produce 540,000 tonnes of polypropylene per year and which will include a coal gasifier plant, a methanol and methanol to propylene unit and a polypropylene unit, is scheduled to be completed in early 2009. The value of the contract has not been announced.