SAIL launches new Odyssey SS dinner set

Steel Authority of India Limited has launched Odyssey, a new 44 piece dinner set made from stainless steel product of its Salem Steel Plant. The dinner set was launched today by Mr Ram Vilas Paswan union minister of steel, chemicals & fertilizers in the presence of Mr RS Pandey secretary steel and Mr SK Roongta chairman of SAIL.

The exquisite 12 kilogram Odyssey collection of kitchenware is brought out by SAIL in a colorful pack and it presents a combination of the conventional bright finish and the contemporary brush finish. Crafted out of SSPs stainless steel, the new dinner set is designed for a family of six.

Under one of the key initiatives of SAIL to move closer to the ultimate consumers, SSP has been giving additional thrust on manufacturing of value added stainless steel products from kitchenware to tubes, roofing sheets and fabricated products etc.

Mr RS Pandey to get coveted PMs Award for Excellence

Indian Government has announced that the Prime Ministers Awards for Excellence in Public Administration for the year 2005-06 would be given to Mr RS Pandey secretary steel. Mr Rajeev Chawla secretary to the government of Karnataka has also been selected for the award. This award will be given away on April 21st 2007.

Mr RS Pandey has won the award for his initiative in enabling participation of the user community in the management of public institutions and services in the state of Nagaland as chief secretary of Nagaland. Mr Pandey conceptualized and implemented the program to involve user communities in fields like education, health and power. The increased attendance and enrolment at schools, improved availability of doctors and increase in treatment of patients and improved collection of electricity revenues as well as reduced power theft testified to the efficacy of the initiatives taken.

Dr Manmohan Singh prime minister of India announced the institution of the Prime Ministers Awards for excellence in Public Administration on Civil Services Day. The awardees are selected through a three tier process involving a shortlist from the state government that was forwarded to an expert committee chaired by the secretary, ministry of personnel.

Maoists kill 2 for parting with their land for steel plant in Chattisgarh

It is reported that Maoist rebels killed two farmers in Bhansi village of Dantewada district in Chhattisgarh, which is about 400 kilometer south of state capital city of Raipur, for allowing their land to be acquired for Essar Steels proposed steel plant. A senior police officer told "Over 40 armed Maoists raided Bhansi village and killed two tribal villagers by slitting their throats for agreeing to surrender their land for Essar Steel's planned plant.

The local police told media that The situation is tense and villagers, mostly tribal of Bhansi and neighboring Dhurli village, are highly frightened by the killings by Maoists. Rebels have warned villagers not to hand over their ancestral farmland to Essar Steel, otherwise they would also meet the same fate.

As per reports, Maoists had earlier warned residents in the area not to hand over their land in return for financial compensation for the steel plant of Essar Steel.

The acquisition of land by companies and state governments for industrial units and special economic zones has become a hot issue in India. Farmers have had their land taken to make way for factories for decades in India, but in recent months isolated protests have joined into a national movement against the accelerating industrialization of the economy.

Essar Steel signed an agreement with the government of Chhattisgarh in June 2005 for setting up a Greenfield integrated steel plant in two phases in Dantewada district with a capacity of 3.2 million tonne per annum with an investment of INR 70 billion. As per reports, the land acquisition process at Dhurli and Bhansi villages is in its final phase and the state government had assured to hand over about 600 hectare lands 400 hectare from Bhansi and 200 hectares from Dhurli latest by June this year. The central government on recommendation of the Chhattisgarh government had last month awarded a prospecting license for a 2,285 hectare stretch in Dantewada district's Bailadila iron ore deposits to Essar Steel to feed iron ore to its proposed plant.

Sical & L&T tie up for constructing iron ore terminal at Ennore

PTI reported that Sical Logistics limited has formed a consortium with L&T for setting up an iron ore terminal at Ennore port at a cost of INR 330 crore. Sical had already entered into concession agreement with Ennore Port Trust to implement the project and the construction work would start in the next 45 days and the terminal is likely to be commissioned in 2009.

Mr Karthik Menon VP finance & strategy of Sical Logistics Ltd said that the terminal would have a capacity of handling 6 to 8 million tons per annum, which could be scaled up to 18 million tons at a later stage.

Mr Menon added that Sical would have 63% equity, L&T 11% and the rest would come from a large iron ore export house.

CILs CCL facing delay for 5 new projects in Jharkhand

Statesman News Service reported that Coal India Limiteds subsidiary Central Coalfields Limited is yet to start any mining works at its five new proposed sites in Jharkhand due to delays from the Jharkhand state government. As per report, the Chatra district administration is yet to hand over the requisite land to the company for projects at Magadh, Amrapali, NorthUrimari, Konar and Karo.

Mr RP Ritolia CMD of CCL told We have been approaching the state government for quite sometime as all preparations to start mining from the proposed sites have been readied. But, the deputy commissioner of the respective district is yet to acquire the land from the residents, pay them adequate compensations as per the rules and vacate the land for us. The mandatory second level forest clearance has also been completed by the state government, which is again a major hindrance for us to start any mining works at the sites.

Indian Railways examining higher axle load trains on iron ore routes

FE has reported that Indian Railways is planning to run heavy haul trains with an axle load of 28.5 tonne and later may increase it to even 40 tonne on iron ore routes. Heavy haul trains are also being planned for the dedicated freight corridors. Currently, Indian Railways run trains with an axle load of 22.9 tonne and a few having 25 tonne axle load.

Mr JP Batra chairman of the Railway board said that We are planning to start demonstration runs of heavier axle load trains on iron ore routes such Bhillai, Rourkela and Keonjhar. He added that initially the trains would be of 28.5 tonne and later this may be increased to even 40 tonne after taking into account the feasibility of such trains.

Indian Railways is already in consultation with various international experts on the issue for newer technologies as well as enhanced safety measures for running such trains. Running heavy haul trains would require tracks with increased strength, electric brakes as well as automatic train protection system. Heavy haul trains will help increase the freight carrying capacity of railways. It would also mean saving on fuel as longer trains are 25% more fuel efficient.

CILs BCCL profit to dip in 2006-07

Local media has reported that Coal India Limiteds subsidiary Bharat Coking Coal Limited is likely to ear a profit of only INR 21.02 crore for 2006-07 as compared to profit of INR 202.68 crore in 2005-06.

Mr PS Bhattacharya chairman of CIL told media that the decline in the over all profit compared to last year could be primarily attributed to the slump in production of coking coal by 0.9 million tonne during the year 2006-07.

He added that "The scenario is likely to improve in the coming fiscal with the implementation of new plans on few coal patches.

GAIL to lay new gas pipe lines to double capacity in 4 years

It is reported that Indian gas major GAIL (India) Limited plans to invest INR 18,000 crore in new pipeline projects across the country in the next few years. The eight pipelines to be laid by GAIL will form part of an integrated national gas grid in the country.

Dr UD Choubey CMD of GAIL told media that the new projects would enhance GAIL's gas transportation capacity to 280 million standard cubic meters per day from the current 140 million standard cubic meters per day pushing its revenue from gas transportation to INR 5,800 crore from the current INR 2,000 crore.

Indias ministry of petroleum & natural gas has approved GAIL's proposal to invite expressions of interest for 5 new natural gas pipelines in the country to be built on common carrier principle under which 33% of the planned capacity would be offered to third parties.

1. Dadri-Bawana-Nangal
2. Chainsa-Gurgaon-Jhajjhar-Hissar
3. Jagdishpur-Haldia
4. Dabhol-Bangalore
5. Kochi-Kanjikkod-Bangalore-Mangalore

In addition to these projects, GAIL will be laying three pipelines within the existing right of use to augment the capacities by 74 million standard cubic meters per day on ownership basis.

1. Dahej-Vijaipur pipeline by 610 kilometers
2. Vijaipur-Dadri pipeline by 505 kilometers
3. Vijaipur-Auraiya-Jagdishpur pipeline by 571 kilometers

CIL improving utilization of equipments in open cast mines

Dr Dasari Narayana Rao minister of state for coal recently informed the lower house of Parliament various steps being taken by Coal India Limited to improve utilization of its heavy earth moving machines in the opencast mines of all coal producing subsidiaries of Coal India Limited.

Dr Rao said that task forces at CILs subsidiary level and area level have been constituted, which is closely monitoring the utilization of heavy earth moving machines by advance planning for procurement of spares, introduction of maintenance and repair contract with the original equipment manufacturer for equipment life at the time of procurement and by creating fully equipped workshop facilities. Dr Rao added that standardization of equipment for better control on inventories, construction and maintenance of proper haul roads to reduce down time of dumpers and improved blasting for better fragmentation for proper handling and reducing down time of equipment are being implemented.

The utilization of major heavy earth moving machines in CIL as compared to the Central Mine Planning & Design Institute Limited utilization norms for last 3 years is given as under

For 2006-07 (April to February)

Dr Rao informed that apart from dragline, the achievement of CMPDIs norms by the heavy earth moving machines deployed in various subsidiaries of CIL in their mines & projects has been varying for different factors. The major ones are strata conditions, depletion of reserves, presence of active fires, working over depillared area, frequent local agitations, land & forest land availability, equipment age, inclemental weather, spares availability and tyres availability etc.

The total number of heavy earth moving machines deployed at major subsidiary of CIL is given as under

PGCILs 2 PPP route transmission projects stalled

It is reported that implementation of two transmission projects through private sector participation has been stalled after finance ministry has questioned the entire bidding process.

PowerGrid Corporation of India Limited has awarded Reliance Energy both the projects for strengthening the transmission network in 2 blocks of the western region at an investment of INR 2,000 crore and laying a transmission line for the Koldam hydro project in Himachal Pradesh at an investment of INR 3,000 crore.

PGCIL invited bids based on the recommendations of the Central Electricity Regulatory Commission and it had also incorporated a buyout provision wherein PGCIL could take over a project if the company failed to complete them.

But, according to finance ministry guidelines, projects with a capital cost of over INR 100 crore must be appraised by the Public Private Partnership Appraisal Committee after which they are placed before the competent authority for final approval.

Elecon to supply gearboxes for new aircraft carrier

It is reported that Gujarat based Elecon Engineering Co Ltd has bagged a contract for supplying the main propulsion gearboxes for Indias first indigenous aircraft carrier.

The marine gearboxes for the aircraft carrier would be one of the largest and most complex to be installed on the ships and would need precision manufacturing technology to achieve stringent quality and reliability standards laid down for marine applications.

Elecon has entered into a technical collaboration with Renk AG, which is acknowledged for its wide experience in design, manufacture and testing of high quality special gears for marine propulsion.

This is Elecons second endeavor in sophisticated marine gears technology after delivery of gearboxes for Navys new stealth warships under construction at Mazagon Docks Ltd.

BaoSteel 2006 net up by 2.6% YoY

China's largest steel producer Baoshan Iron and Steel Co Ltd announced that its 2006 net profits climbed up by 2.7% to CNY 13.01 billion (USD 1.68 billion) as compared to CNY 12.67 billion in 2005 and that its sales income increased by 24.6% YoY to CNY 157.79 billion as compared to CNY 126.61 billion in 2005.

Its 2006 operating profit stood at CNY 18.98 billion as compared with CNY 18.30 billion in 2005. In 2006, BaoSteels domestic sales stood at CNY 99.19 billion while overseas sales were at CNY 15.72 billion.

Baoshan Steel increased sheet sales by 27% YoY to automakers and by 17% YoY to home appliance makers last year. It also has a 20% share of China's stainless steel market.

The steel producer attributed the good performance to sustained strong domestic demand and higher product prices although it said that local demand for steel might ease to some degree in 2007.

It plans to produce 20.75 million tonnes of iron and 23.27 million tonnes of steel this year. It expects 2007 sales at CNY 159 billion levels. Baosteel said that its total investment in 2007 will be about CNY 22.7 billion.

CVRD Incos Sudbury nickel mine facing strike

It is reported that unionized office and technical staff at CVRD Inco's Sudbury nickel mining operations 370 kilometers northwest of Toronto in Canada went on strike after last minute contract talks broke off late Saturday.

Mr Dan Serre a unit president for United Steelworkers Local 2020 told Reuters that The talks have broken off. They've held firm to that offer that fell way short of our members' priorities, so we're setting up picket lines.

On last Wednesday, 99.1% of the 330 workers voted in favor of strike action if the two sides couldn't come to an agreement by midnight of Saturday.

The current three year contract covers workers in such jobs as accounting, payroll, laboratory work, surveying and geology. Workers want a new contract matching the pattern set in recent deals in the nickel industry.

The strike may crimp nickel output because surveyors guide miners drilling through ore and lab workers must monitor mineral composition. Their absence, along with picketing on routes used to transport ore, may impact production although it would not shut the operation. This is going to make nickel prices soar even more and will also push global stainless steel prices higher, which is positive in the short term, but it may reduce demand in the long term.

Companhia Vale do Rio Doce acquired the Sudbury operations when it bought Canadian nickel miner Inco in 2006. Sudbury complex includes six mining operations and a nickel smelter.

National Australia Bank forecast firm commodity prices in 2007

National Australia Bank Ltd last week announced that global prices of commodities should remain stronger for longer with a decline in 2008. It has forecasted that the overall price index of 19 commodities in USD, after surging by 17% YoY in 2006 will rise a further 1.5% YoY in 2007 before declining 11% YoY in 2008.

National Australia Bank, in its March 2007 price outlook publication forecast that in the short term, non rural commodity market fundamentals will remain firm, with demand growth driven by the economic development of China and to a lesser extent India. It said Although China is already either the largest or second largest consumer of most mineral and energy commodities, consumption broadly remains low on a per capita basis indicating the potential for sustained longer term growth.

The bank also noted that exchange traded commodities have been exposed to increased speculative pressure in recent years with investors lured by higher returns. It said that however, recent losses in natural gas, copper and zinc markets might refocus speculative market participants on the risks, not only returns, of commodity investments, resulting in a slowing or even withdrawal of investments, adding to price uncertainty.

Italian steelmakers call for launching AD investigation against China & Russia

An Italian newspaper reported that imports of steel from China, Russia and Ukraine into Italy is surging. Italy registered 7 million tonnes steel import a 30% YoY growth and the steels from above 3 nations surged by 50% YoY in 2006.

President of the Italian iron & steel association AIM has expressed serious worries about this situation and said that it is high time to talk about antidumping measures by EU, at least for some steel types and some aggressive nations exerting huge exports.

As per reports, Italy imported 2.5 million tonnes steel products from China in 2006 and Russia shipped 2.6 million tonnes of steel in 2006 up by more than 200% YoY.

(Sourced from Mysteel.net)

Indonesia to dominate Asian thermal coal market

Coal industry experts forecast that Indonesia will continue to dominate the Asian thermal coal market at least until 2020 despite Indonesian government's policy of directing more coal supplies to the domestic market. Indonesia is believed to have estimated coal deposits of around 63 billion tonnes.

UK based trade publisher and consultant to the international coal business, McCloskey, in a report issued at an Asian coal conference in Jakarta, said that with its massive coal reserves, Indonesia would be the only coal producer that could fulfill the expected surge in future coal demand in the region.

McCloskey said that coal demand in Asia would continue to increase over the 13 years up to 2020 due to an increase in coal usage in most Asian countries including India, China, South Korea and Malaysia.

McCloskey said that another important factor that would strengthen Indonesia's position as Asia's largest coal exporter is the fact that China, also one of world's major coal producers, would further cut its coal exports. It said In order to be able to benefit from the opportunities the Indonesian government should strive to increase production by offering investors a more attractive mining policy.

Indonesia, the world's largest coal exporter, is expected to produce 183 million tons of coal in 2007 out of which about 134 million tons of which would be exported. Indonesias production is projected to increase to 198 million tonnes in 2008 out of which about 145 million of which will be exported. Based on government estimates, total coal production will reach 320 million tonnes in 2020 with export accounting for 150 million tonnes. In 2025, coal production is expected to increase to 370 million tonne with export accounting for 150 million tonnes.

Gulf States set to witness a boom in steel demand and capacity

It is reported that the Gulf Cooperation Council requires more than USD 5 billion investments in the Iron and steel industry in the region over the next 3 years as the region aims to become self sufficient by 2008 and venture into export markets thereafter.

Gulf Organization for Industrial Consulting in a recently conducted study Iron and Steel: Industry and Trade in GCC Member States said that the required investments to implement the planned ventures in the iron and steel industry are estimated to be over USD 5 billion within the coming three years. GOIC said that the increased requirement for capital expenditure is due to the increase in steel demand, which is estimated to increase to 19.7 million tonnes by 2008 from 15 million tonnes in 2005.

GOIC said that In view of mergers and acquisitions in the global iron and steel industry producers in the GCC, which has a meager of 1% share in global output, needed to adopt a multi pronged strategy including joint imports of raw materials, to achieve scale and cost competitiveness. GOIC said that it would push the GCC producers to enhance technical Referring to mergers & acquisitions in the global steel industry advancements and augmentation of quality and operational efficiency.

It said factoring in the increased global competition there is a great importance of cooperation, coordination and joint work information exchange, marketing or joint import of raw materials and spare parts. It added that such a move would have positive results leading to reinforcement and support of the industrial, commercial and competitive positions of the Gulf iron and steel industries, in addition to achieving integration amongst GCC states.

The report added that GCC is currently witnessing rapid movement towards developing the iron and steel industry with governments making ambitious plans to set up new ventures to meet the fast-growing demand in construction real estate and infrastructure projects. It also plans to set up several new iron and steel ventures with huge production capacities which is expected to increase iron bar and wire rod output to 12.8 million tonne in 2008 from 5 million tonne in 2005.

GCC, one of the largest users of iron and steel in the world as annual per capita consumption is 378 kilograms with the global average being only 182 kilograms, with mega development projects going on in the region and more ventures to be launched in the years to come fuelling a continuing construction boom, the consumption is likely to increase. GOIC report said that the gap between demand and supply was expected to exist until 2008 and after 2008, it is expected to have surplus, making it necessary for them to find external markets because the internal market would have reached saturation by that time.

The first factory in the Gulf region was set up in Jeddah in 1966 to produce iron bars and today there are in all 45 plants in the region churning out various iron and steel products. As per 2005 data, Saudi Arabia had the highest number of steel plants at 22, followed by the UAE at 9, Qatar at 5, Kuwait at 4, Oman at 4 and Bahrain at 1.

CSN aiming to break CVRDs hold on Brazilian iron ore exports

Bloomberg has reported last week that Brazilian steelmaker Cia Siderurgica Nacional expects to break CVRD's hold over exports from the Casa de Pedra mine by next year to become a major iron ore supplier as it is seeking to overturn a 2001 deal that gave CVRD the right to buy and export all ore from the mine that CSN does not use in its blast furnaces or sell to domestic mills.

Mr Jayme Correa, who manages an expansion project that will turn the iron ore mine into the worlds second biggest, expects the Brazilian regulator to rule in CSN's favor soon. He said that The right of first refusal isn't worth anything to Vale; they have to pay us the world price and they can mine their own ore more cheaply. It's taken longer than we hoped to get our export business working but we will be exporting our own ore directly in 2008.''

On the other hand CVRD has no intention of giving up its right to first refusal of CSN ore. Mr Jose Carlos Martins head of CVRD's ferrous metals division in an interview said that Of course the right has a value. It was part of an agreement that separated the companies and it had a value then and it has a value now. It's really not for them to say what we do with our right.'' He said that CVRD will fight the antitrust ruling in the courts, though it is open to negotiations with CSN.

CVRD, which used to be controlled by CSN, won the right of first refusal when the two companies split in 2001. CSN's partners at the time, Bradesco SA and pension fund Previ, bought out CSN's stake in CVRD and sold their interest in CSN. The dispute intensified after CVRD stepped in to take control of a 5 million tonne per year supply contract that CSN signed with Mitsubishi Steel Manufacturing Co.

The antitrust ruling stems from a complaint by CSN and other metal producers that CVRD has too much power hindering competition. CVRD supplies about a third of the world's iron ore and accounts for 61% of domestic sales.

CSN, which uses about 8 million tons of iron ore a year for its own operations in Brazil, is targeting exports of 30 million tons annually by the end of 2010. CSN will export 7 million tons in 2007 but none of those ore shipments will come from its Casa de Pedra mine. Casa de Pedra mine expansion plan will boost its output to 55 million tonnes a year second only to CVRD's 100 million tonne Carajas mine in the Amazon.

Mr Ai Baojun elected as chairman of BaoSteel

BaoSteel also announced that its former GM Mr Ai Baojun has been elected to replace Mr Xu Lejiang as chairman of the Baoshan Iron and Steel and Mr Fu Zhongzhe a former deputy GM has been elected as its new general manager.

Mr Xu Lejiang replaced the retiring Ms Xie Qihua as the new chairman of the board of directors of Baosteel Group in January 2007. Mr Xu was the BaoSteel Group's general manager and a board member of Baoshan Iron & Steel since 2000.

Stroytransgaz to lay Sheiba-Abkaik oil pipe line for Saudi Aramco

It is reported that Russia's energy giant Gazprom construction arm Stroytransgaz and the Saudi state oil company Saudi Aramco signed a contract to build an oil pipeline from Sheiba to Abkaik in the Eastern province of Saudi Arabia last week end. Construction is to begin in mid 2007.

Under the contract, which is estimated at over USD 100 million, Stroytransgaz is supposed to build a 217 kilometer long pipeline from the Sheiba oilfield near the border with the United Arab Emirates to the major oil processing center of Abkaik in 18 months. The new branch will be laid parallel to an already existing pipeline, which would make it possible to increase the volume of oil transportation.

The construction will be conducted in the world's biggest sand desert, Rub al-Khali, known for its record high summer temperatures, quick sands and dust storms. The project will be fully implemented by the Russian company, but workers from other countries would also be employed.

State-owned Saudi Aramco is one of the world's largest oil and gas associations. It fully controls all reserves of hydrocarbons in Saudi Arabia, carries out their production, processing and transporting. In the rating of top 50 world oil companies, Saudi Aramco has for almost 20 years held the first place in terms of oil reserves, production, management quality and technology used.

MMK expected to invest USD 5.2 billion by 2012

Bloomberg citing a confidential report for investors by Renaissance Capital said that Magnitogorsk Iron & Steel plans to invest USD 5.2 billion through 2012 to battle rising costs and expand output.

Mr Rob Edwards and Mr Yury Vlasov analysts of RenCap wrote in the report that "Rising costs of raw material and potentially gas over the longer term create a further impetus to improve margins." The analysts forecast that the MMKs costs will rise by almost one third before 2010. RenCap said that MMKs crude steel production could climb by 16% to 14.5 million tons in 2009.

The report mentions that MMK is also considering building a coking coal plant in central Siberia together with a unit of Evraz Group and that MMK is also looking to develop the Kureinskaya coal deposit in the Kuznetsk Basin which holds 430 million tons of hard to medium-grade coke reserves, RenCap said. MMK owns half of the deposit's license holder, Ugolnaya Co Kazankovskaya, via its MetAl unit and Yuzhkuzbassugol owns the rest.

RenCap added that to secure an export route to Asia, MMK has bought a 47.5% stake in Vladivostok Commercial seaport in the Far East via its M-Port unit and that it also has a 6% of Yeisky seaport on the Black Sea.

Algoma to initiate trade actions against increased steel imports

Platts reported that record levels of steel imports into Canada in 2006 have led to serious apprehension from Canadian steel makers, which could lead to an increased number of trade cases over the next two years.

Canadian sheet and plate producer Algoma, in its annual information form filed last week expressed concern about import levels. Algoma stated in its filing that Canadian steel imports at 10.5 million short tons hit a record of 53% of Canadian consumption in 2006 up from 51% in 2005 and 46% in 2004. Canada's apparent steel consumption in 2006 was slightly less than 20 million short tons and its steel exports totaled 6.7 million short tons.

Algoma said that an antidumping review is expected to begin later this year on plate exports from China, Russia and South Africa. Algoma said "It is particularly concerned about the level and growth of plate imports from countries that had been covered by Canadian antidumping findings until those were rescinded, in addition to those from countries not previously covered." A public hearing for plate imports is expected in November 2007 with a decision by the Canadian International Trade Tribunal anticipated in early January 2008.

Algoma added that hot rolled sheet is also a concern, noting that China's capacity in this market is expected to increase this year by 20 million tonne approximately 4 times the size of the Canadian hot rolled sheet market. Algoma noted that trade cases covering sheet also are being considered in other countries, which could result in large quantities of hot rolled product looking for export markets in Canada and elsewhere. Algoma applauded a CITT decision last year that maintained duties on hot-rolled sheet from Brazil, China, Taiwan, India, South Africa and Ukraine. The decision also rescinded duties against products originating in or exported from Bulgaria, Macedonia and Serbia and Montenegro.

Algoma said "The Company will continue to carefully monitor imports of all products and will file a complaint against any that are unfairly traded."

Aricom to acquire Russian mining expert firm Giproruda

Anglo Russian developer of mineral resources Aricom Plc announced that it has acquired a 68.49% stake in the St Petersburg based mining design institute OJSC Giproruda for RUB 211 million (USD 8 million). The acquisition is conditional to the approval from the Russian Anti Monopoly Service.

Giprorudas key area of specialization is iron ore. Employing 148 people, Giproruda specializes in the analysis and design of mining projects. Giproruda has experience in the design of pits and mines in extreme mining, geological and climatic conditions. Other areas of expertise include the development of efficient mining technologies, project repair base layout, design and transportation services, the repair of technical equipment, storage facilities and the design of administrative and domestic facilities.

According to Giproruda, it currently has a 60% share in the project design services market in the Russian mining industry. Giproruda has built and reconstructed about 200 mining enterprises in Russia, Kazakhstan and Transcaucasia. The institute has designed enterprises, which now work in China, India, Iran, Egypt, Bulgaria and the Balkans. It plans to expand its operations within the CIS and is advancing its international program and has signed contracts on a number of projects. Giproruda reported revenue of USD 6.8 million for 2006, operating profit of USD 1.4 million, profit after tax of USD 1.5 million and net assets of USD 3.3 million.

Aricom sees it as a specific benefit in terms of the analysis and design of a number of the groups future and existing development projects as Giproruda will continue its work with other clients but will be given the opportunity to focus on Aricoms portfolio of projects.

Mr Jay Hambro CEO of Aricom.said that Aricoms project portfolios now contain a sizeable amount of reserves and resources in Russia. We are already a client of Giproruda and their position, as a leader in Russian mine design and development, it will significantly enhance the groups ability to exploit the massive potential inherent in our assets.

Aricom was established in September 2003 to develop projects in the north west of the Amur region, in Russias Far East. These projects are set to service the Chinese and Russian commodity markets. Aricom currently operates 3 projects in the Amur region and the adjoining Jewish Autonomous Region Kuranakh, K&S and Bolshoi Seym which have combined estimated reserves and resources of over one billion tons of iron ore and ilmenite ores.

1 killed in Nippon Steels Nagoya plant coke oven accident

The Yomiuri Shimbun rported that 6 workers were burned on Saturday afternoon when flames burst from a pipe containing coke gas while they were attempting to remove it at Nippon Steel Corp.'s Nagoya plant at Tokai in Aichi Prefecture. One of the injured later died in the hospital. The others suffered minor burns on their face and chest.

The police said the workers were replacing a pipe 1.4 meters in diameter that carries coke gas generated from baking coal to another facility within the plant. They were putting a steel plate on a pipe seam to seal off the coke gas when the accident occurred.

The police are investigating whether proper safety procedures were taken?

US Steel sees steel supply as major synergy in Lone Star acquisition

Mr John Surma chairman and CEO of US Steel in a conference call held to address its planned acquisition of the pipe and tube producer Lone Star Technologies said that "Lone Star is steel short, of course, and we are sometimes long. In terms of sourcing, Lone Star buys a lot of hot band, and we are looking to max out our steel operations."

Mr Surma said to feed Lone Star operations, steel could be sourced from virtually any of US Steel's plants including Gary, Indiana Works, Granite City, Illinois or Fairfield, Alabama.

Mr Surma further added that "The long term outlook is positive for this sector. We're comfortable with our own position and we're interested in strategic growth not just in getting bigger."

Sumitomo Metal plans nickel project in Philippine

Bloomberg reported that Japans largest nickel producer Sumitomo Metal Mining Co has agreed with Manila based Taganito Mining Corp to conduct a joint study on building a USD 1 billion nickel smelting plant in the Philippines.

Sumitomo Metal Mining in a statement to the Tokyo Stock Exchange said that it would set up a JV in 2008 to build a plant with annual production capacity of 30,000 tonnes of nickel per year if the study results are favorable. It said that the smelter would start operation in 2012 and continue production for about 30 years.

The proposed project in Mindanao would use high pressure acid leaching technology.

The project would be Sumitomos 3rd overseas nickel facility after the Coral Bay plant in the Philippines and the Goro project in New Caledonia.

Mittal Steel Galati gets eco warning

Romanian Bursa citing Mr Ioan Gherghes president of the Roamnais National Environment Agency reported that Mittal Steel Galati must obtain an integral environmental license until October 30th 2007 or close down.

However, the report also cites Mr Mihai Capra prefect of Galati County as saying that "This does not mean that all problems have to be solved by October 30th. They need to prepare documentation and an action plan indicating deadlines by which problems have to be solved."

As per report, Mittal Steel Galatis environmental license was issued in 2002 and expired in March 2007.

Komatsu to commercialize unmanned haulage trucks in 2 years

According to a report by Mining Magazine, leading surface mining equipment manufacturer, Komatsu is set to commercialize its automated haul truck system in only one to two years time. The comments were attributed to Mr Rod Schrader VP and GM of Komatsu Americas mining division, who was speaking at the CRU World Copper Conference in Santiago, Chile on March 28th 2007.

The unmanned haulage system is called FrontRunner and is being developed jointly by Komatsu and Tuscon based Modular Mining Systems Inc, the 100% Komatsu owned provider of GPS based systems for truck dispatch and drilling & excavation management. Modular is responsible for the software behind FrontRunner, while Komatsu has developed the interface with the electric control system behind the truck functions such as steering, braking and engine operation.

FrontRunner has been undergoing primary tests on a fleet of five 290 tonne payload Komatsu 930E electric drive trucks at a Komatsu customer mine site in Chile. Underground automation is much more advanced, with unmanned LHDs already full operational at a number of large mines, including Codelco El Teniente in Chile and De Beers Finsch in South Africa, where the underground haul trucks are also unmanned.

It is hoped that the system will save on labour costs, improve safety performance and reduce truck maintenance costs and variability in the haulage process.

6 killed in coal mine accident at Shijialing village in Shanxi

Xinhua reported that an accident at 9 PM on last Friday in an illegally run coal mine located at the Shijialing village of Jingle County in Xinzhou City in north China's Shanxi Province killed 6 people.

It is not immediately known what type of accident it was as local authorities were trying to capture the mine owner and the cause of the accident is under investigation.

The coal mine had been sealed off before the accident happened, he said.

Metinvest to increase steel output by 10% YoY in 2007

Ukrainian Journal citing Mr Ihor Korytko head of System Capital Managements Metinvest Holding reported that its steel division plan to increase its output by 10% YoY in 2007. It plans to produce 9.38 million tons of steel products in 2007 up from 8.5 million tons in 2006

System Capital Management is owned by Mr Rinat Akhmetov, Ukraines richest person.

POSCO announces price hike for SBQ plates and CRGO

POSCO announced that it plans to raise the prices of some steel products on April 19th 2007 to reflect an increase in iron ore costs.

POSCO said that the price of steel plates for shipbuilding will rise by 3.3% to KRW 605,000 per tonne (USD 642) while the price of electrical steel will be raised 7.1% to KRW 3.3 million per tonne (USD 3503).