India accounts for 1/3rd of global DRI production in March

International Iron and Steel Institute have released the production figures for direct reduced iron for the month of March 2007. The global production of DRI in March 2007 has increased to 4.499 million tonne sup by 12.9% YoY with India accounting for 33.3% of the global share and leading the growth with 22.5% YoY.

Global DRI production during January to March 2007 quarter amounted to 12.989 million up by 11.8% YoY. Indias production in this period amounted to 4.3 million tonnes up by 27.1% YoY, accounting for 33.1% of total global DRI production.

The production update is as under

In 000 tonnes
Source - IISI

ISA calls for setting up a new panel on mineral policy

PTI reported that Indian steel industry has asked the union government to set up a new panel for framing a comprehensive mineral policy so as to attract investors as they are dissatisfied with the Hoda Committees report on iron ore.

An official of Indian Steel Alliance told PTI that None of the promised investments of nearly INR 200,000 crore would fructify if the government accepted the Hoda Committees recommendations in toto. We demand that a new committee be set up to delve into all the issues pertaining to iron ore and come out with a comprehensive national mineral policy.

The official said steel utilities under the banner of ASSOCHAM have appointed accredited consultants to suggest a mineral policy to overcome loopholes and minimize litigations. He added that The utilities have joined hands and have solicited the expertise of KPMG to suggest a basic policy framework, besides enlisting the services of a reputed legal firm for framing a comprehensive policy on iron ore.

The official further added that the utilities have also solicited expertise of National Council of Applied Economic Research for suggesting a strategy for conservation and value addition of minerals.

Mr B Muthuraman MD of TATA Steel had earlier represented steel companies and was reported to have put a dissent note on the Hoda Committees recommendations.

SAIL's rail movement in 2007-8 set to increase by 15% YoY

BL reported that Steel Authority of India Limited hopes to transport 71.50 million tonnes of cargo by rail in 2007-08 up by 15% YoY as compared to 61.88 million tonnes in 2006-07 to match its projected production of 16.37 million tonnes of hot metal in 2007-08 up by 14% as against 14.37 million tonnes in 2006-07.

As per estimates, SAILs inward traffic in 2007-08, mainly for raw materials such as coking coal, thermal coal, iron ore, flux and manganese ore etc, will be 56.29 million tonnes as compared to 48.74 million tonne sin 2006-07. SAILs outward traffic of finished steel is estimated at 15.21 million tonnes as compared to 13.14 million tonnes in 2006-07.

As per report, the item wise estimates are as under

In million tonnes

South Eastern Railway will again handle bulk of SAIL's traffic in 2007-08 estimated at 36.78 million tonnes as against 32.39 million tonnes in 2006-07 with 29.68 million tonne of inward traffic and 7.10 million tonne of outward traffic. East Coast Railway is estimated to handle 7.74 million tonnes of only inward traffic as compared to 5.61 million tonnes in 2006-07.

POSCO India hopes to complete Orissa plant by 2010

POSCO has recently announced that its steel project in Orissa would be completed on time despite a 2 month delay due to violent protests against another proposed plant in the area. Mr Tae Hyun Jeong deputy MD of POSCO India, on the sidelines of a steel conference in New Delhi, told reporters that "There is a 2 month delay because of the Kalinganagar incident. However, the project will be completed as scheduled by December 2010, as we had made provision for a bump period."

Mr Jeong said the government had already demarcated nearly 80% of the land needed for POSCO to start the project and another 20% is to be acquired from private owners and these were likely to be completed soon.

POSCO is also expecting to get a license for prospecting minerals from the state government in May 2007. Mr Jeong said it expected to meet its iron ore needs from within the state. He added that "I don't think we need to buy iron ore from anywhere else. For 12 million tonnes steel output, we need 19 million tonnes of ore. And the captive mines we will have are sufficient.

POSCOs optimism is remarkable, as it has not been able to make any headway in land acquisition amid strong protests from the villagers and also the question of allocation of iron ore deposit is quite uncertain.

India to strengthen safety measures in coal mines

Indian government has directed all coal companies not to compromise on safety in coal mines and make necessary investments for it especially in underground ones which is a thrust area for increasing coal production to 75 million tonne at the end of the 11th plan from the present level of 46 million tonnes.

Mr HC Gupta union coal secretary while addressing at national workshop on safety leadership capacity building said that "The coal companies are going to face much bigger challenges in areas of safety, but there should be no compromise as far as safety is concerned, whether the mine is profitable or loss making. Money should not be a problem for ensuring safety."

Mr Gupta said that directorate general of mines safety should strengthen its regulatory mechanism to ensure safety in mines. He added that greater attention has to be paid on the safety aspect in underground mines.

Safety has become all the more important with India setting up an ambitious target of doubling coal production from the existing level of 430 million tonne in the next 10 years and with a large number of coal blocks going to private companies.

Kalinga Nagar tribals extend support to anti POSCO faction

KalingaTimes reported that a delegation of 10 tribal of Kalinga Nagar under the banner of Visthapan Virodhi Janmanch, who visited Nandigram after the recent police firing, have gone to Jagatsinghpur district in Orissa to express their solidarity with the villagers opposing the proposed steel plant project of POSCO.

Mr Rabindra Jarika secretary of Visthapan Virodhi Janmanch said "There is no difference between Kalinga Nagar and Kujanga. In both the places the villagers are opposing forceful land acquisition by the government. Hence, the people of Kalinga Nagar thought it was their duty to stand by the people in three gram panchayats in Jagatsinghpur who are opposing displacement.

Mr Jarika added "Orissa government is trying to acquire land from the farmers of Dhinkia, Nuagaon and Gadakujang gram panchayats against their will. We will pledge our support to them as our crusade was against industrialization at the cost of people's land and livelihood sources.

Visthapan Virodhi Janmanch has been opposing displacement by the proposed six million tonne steel project of TATA Steel since the police firing in January 2006 when 13 tribal were killed in police firing.

UGSL embarks on major expansion plans

Uttam Galva Steels Limited has embarked on major expansion plans to meet the increasing demand for processed steel in both the domestic and international markets.

On the domestic front, UGSL will enhance production capacity to one million tonnes of cold rolled steel and 750,000 tonnes of galvanized steel by the end of 2007.

UGSL has entered into a JV with UK based trading company Liberty Commodities to build a 75,000 tonnes per year hot dip galvanizing line and a 200,000 tonnes to 250,000 tonnes per unit cold reversing mill to supply it with CR called Ghana Iron & Steel Co in Ghana in West Africa.

Mr Ankit Miglani director commercial of Uttam Galva Steels Ltd said that It is our constant endeavor to capitalize on domestic and global opportunities. We are exploring both organic and inorganic routes to grow and enhance value for all our stakeholders. We are continuously expanding our global footprint and consolidating our position in the domestic market.

ABCI awards SAILs Corporate Communications Chief

Steel Authority of India Limiteds head of Corporate Communications Mr Debjit Rath has been bestowed with a prestigious fellowship Fellow of the Brain Trust of ABCI by the Association of Business Communicators of India at a function held last week in Mumbai.

ABCI has honored Mr Rath for his invaluable contributions in the field of Corporate Communications during his 32 year long career in SAIL. The fellowship consisted of a gold medal and a certificate of merit.

Mr Rath has also been an active member of the Communications Steering Group of the International Iron & Steel Institute. He is also the founder Chairman of the Orissa Chapter of Public Relations Society of India.

Village bodies to decide on compensation for land in Jharkhand

It is reported that, under the proposed rehabilitation and resettlement policy, local village bodies will decide the land prices for the land to be acquired for mega industrial projects in Jharkhand and the displaced will be resettled in the townships that will come up around those projects.

Mr Sudhir Mahto deputy chief minister and industry minister of Jharkhand told media persons that "We are now ready with the R & R policy and hope to announce it either by month end or in the first week of May. This is such a good policy that we 'are confident that the villagers will accept it happily."

He said that the draft was in the final stage and soon on all party meet would be convened to ratify it before it is placed in the Cabinet. He added that "We would soon go to the villages personally to apprise them of the details. This policy would clinch the deal."

Indian coal imports projected to cross 50 million tonnes

It is reported that Indias coal ministry has projected a steep rise in coking coal imports that would push Indias total imports of coal to over 50 million tonnes by 2011-12 which is about 14% higher than Indias coal imports of 44 million tonnes in 2006-07. However, coal ministrys projection is lower than the coal imports of 86 million tonnes projected by CRISIL Research.

According to a coal ministry official, the imports will rise despite the present production growth rate of 5% as coal would remain the most important source of commercial energy in India. The official said that India would require 731 million tonnes of coal by 2011-12, while domestic coal production is projected at 680 million tonnes and production needs to go up anywhere between 1.7 and 2 billion tonnes in the next 25 years.

According to industry analysts India could up production by exploring and exploiting more reserves with only 50% of potential coal reserves explored. India coal reserves are estimated at 255 billion tonnes out of which 98 billion tonnes are proven reserves. But according to Mr SK Chand industry analyst at Tata Energy Research Institute It is a myth that Indias coal reserves are huge and the country can have more coal if sufficient exploration efforts are made.

Punjab announces measures to boost industry in the state

Punjab Newsline Network reported that government of Punjab has announced a series of measures to lift industry in the state out of the prolonged stagnation and recessive sentiment and propel it into a higher orbit.

Mr Parkash Singh Badal chief minister of Punjab announced the setting up of a four member interactive group comprising the representatives from the government and the industry for a joint initiative to inject entrepreneurial dynamism, loosen the stifling grip of official dome and simplify procedural complexities in order to create an atmosphere in which the industry could breathe freely.

Mr Badal also announced his government's readiness to allow open access for direct purchase of power by industry from sources outsides the state. He declared that wheeling charges on power thus purchased would be significantly reduced.

Mr Badal said that he would lead a delegation of local traders and industrialists along with Industries Minister Mr Manoranjan Kalia to New Delhi to press the Centre for declaring Special Economic Zone for Mandi Gobindgarh which had the highest concentration of steel and re rolling mills in the Asia.

India extends current scrap imports guidelines again

Exim News Service reported that India government has reportedly extended the validity of the present import regime for metallic waste and scrap to September 30th 2007, thereby postponing the proposed system of import from registered sources to October 1st 2007. The registered sources system was to come into effect last year.

Under the proposed system, suppliers of metallic scrap to India would have to be registered with the government department concerned before their supplies are allowed for import.

The government had in 2004 revamped and tightened the import policy on metallic scrap and waste following an explosion of live shells in an imported consignment of metallic scrap at a facility of a steel manufacturer. Pre shipment inspection certificates were then stipulated for import of metal scrap in un shredded or loose form.

Rail Wheel Factorys 2006-7 wheel production exceeds target

It is reported that Rail Wheel Factory Bangalore has achieved a record production during 2006-07 with the output of 126,126 wheels exceeding the installed capacity of 115,000 wheels. The target for the wheel sets, which consists of axles and wheels, was also surpassed by the RWF as it produced 58,259 units against the target of 40,500 target set by the Railway Board.

Mr Praveen Kumar GM of Rail Wheel Factory while addressing the staff on the occasion of the Railway Week said that RWF also reduced the energy bill to the tune of INR 1.167 million in 2006-07. Mr Kumar said due to continuous energy monitoring and corrective actions, the energy consumption per tonne of steel melted had been reduced from 549 units to 541 units per tonne during the period.

Nippon Steel to raise Chinese HDG JV capacity

Nippon Steel Corp in a recent statement said that it is aiming to raise its automotive sheet output capacity at its Shanghai JV by 50% by adding a new line with annual capacity of 450,000 tons for a total of CNY 25 billion (USD 210 million) by 2009.

Mr Shoji Muneoka executive VP of Nippon Steel told Reuters in an interview that that Nippon Steel is talking with China's top steel maker Baosteel Group Corp and the world's biggest maker Arcelor Mittal to add the new auto sheet line at their joint venture in Shanghai. He said that We'll be able to come to an agreement so that we can maintain our 50% share in China's rapidly growing car sheet market.

The Chinese company, a unit of Baoshan Iron and Steel Co owns 50% of the JV while Nippon Steel has 38% and Arcelor Mittal 12%. The JV already has two continuous galvanizing lines for auto grade HDG with capacity of 450,000 tons a year and one of 350,000 tons.

The aggressive investment plans indicate the previously cautious Japanese steel giant has shifted gears to growth as it aims to capture strong demand from Japanese car makers who are increasingly making cars in other countries, particularly in Asia. Mr Muneoka said that We are building bridgeheads in expanding markets. We are not only providing technical cooperation. We are ready to take risks by acquiring stakes in businesses to achieve that goal.

Mr Muneoka said that Nippon Steel is also hastening plans to boost capacity at its JV with Arcelor Mittal in the US where several Japanese car makers are starting new plants around 2010. He added that the company would complete a feasibility study on possible joint production of car use sheet steel in India with TATA Steel by the end of this year so that it could cope with expected sharp growth in demand in the market around 2010.

Shenhua aims at 800 million tonne coal by 2020

Chinese biggest coal producer Shenhua Energy Co announced that it will produce 400 million tonnes of the fuel by 2010 almost double of last year's total. Mr Ling Wen president of Shenhua Energy added that its production of coal will rise to 800 million tonnes by 2020.

Shenhua has benefited from a surge in demand in China, the largest producer and consumer of coal. The economy expanded 10.7% in 2006, spurring consumption of the fuel used to generate two-thirds of China's power.

Shenhua reserves are second only to Peabody Energy Corp. Shenhua Energy mined 202 million tonnes of coal in 2006.

Sherritt buys nickel miner Dynatec

Reuter reported that Sherritt International Corp plans to buy Dynatec Corp to triple its nickel business in a friendly all stock deal it values at CAD 1.6 billion. Shareholders will vote on the deal, which requires two-thirds approval, at a meeting expected in early June. If approved, the transaction is expected to close soon after.

Under the proposed transaction, Dynatec shareholders will get 0.190 of a Sherritt share and about 0.0635 of a share of FNX Mining Co., which is currently owned by Dynatec for each Dynatec share. That values Dynatec shares at CAD 4.88 each a 29% premium to the closing price on last Thursday and 39% premium on the 20 day volume weighted average share prices for the three companies from that date.

Dynatec has a 45% stake in the Ambatovy nickel mine being developed in Madagascar. Dynatec also has a 24.5% stake in FNX and also owns a coal bed methane lease arrangement in the United States. Dynatec estimates annual production at the Ambatovy project at 60,000 tonnes of nickel, 5,600 tonnes of cobalt and 190,000 tonnes of ammonium sulphate. It estimates the mine's productive life at about 27 years. Construction on the project is expected to start this year, with mechanical completion seen in early 2010.

Mr Jowdat Waheed CEO of Sherritt told analysts in a conference call that "This acquisition will double the capacity of our metals business segment, while at the same time positioning us to be a low cost producer for decades to come. The key driver for this transaction is our belief that the long term nickel demand fundamentals are extremely strong.

WBMS estimates 19,000 tonnes nickel deficit in February

According to the latest assessment from the World Bureau of Metal Statistics, the global refined nickel market recorded a deficit of 19,000 tonne during February 2007 with reported stocks some 3,000 tonne lower.

WBMS said that mine production in January to February 2007 was, at 253,100 tonne up by 14% YoY and refined production was up by 6% YoY with output increases in China, South Africa and Canada accounting for most of the higher output.

WBMS added that the global demand was 42,000 tonne higher than in 2006 which stressed, as ever, that no allowance is made in the consumption calculation for unreported stock changes.

Terra Nostra increases ownership in its Chinese JVs

Terra Nostra Resources Corp announced that it has entered into an equity transfer agreement with its Chinese JV partner whereby Terra Nostra can increase its ownership position to a maximum of 90% in both the copper and stainless steel JV companies.

The Agreement calls for an increase in ownership of both JV to an additional 19% initially followed by a further 20% position resulting in a 90% ownership position in both joint venture companies by Terra Nostra.

Presently, Terra Nostra owns a 51% interest in 2 Chinese JV companies in the strategic copper and stainless steel industries Shandong Terra Nostra Jinpeng Metallurgical Co Ltd and Shandong Quanxin Stainless Steel Co Ltd.

Coal & Allied warns on infrastructure problems in Australia

Coal & Allied Industries has warned that Australias reputation as a reliable energy supplier could be tarnished if infrastructure issues were not resolved.

Mr Chris Renwick chairman of Coal & Allied Industries told shareholders at the annual meeting in Sydney that demand for coal continued to strengthen but Australia's producers could not meet demand because of infrastructure problems. He said "This has the very real potential to put Australia's reputation as a reliable energy supplier at risk."

He said that In the Hunter Valley alone, infrastructure constraints are preventing producers from fully capitalising on demand, with at least an additional 15 % production capacity not being realized. We can dig up the coal and put it into our load bins, but we simply can't get enough rail wagons to the port and on to ships.

Mr Renwick said infrastructure constraints were one of the most significant challenges facing the coalminer this year, blaming shipping congestion at the Port of Newcastle for a reduction in profit from USD 291 million in 2005 to USD 207 million in 2006.

Mr Renwick said "Make no mistake about this. I am not talking about a diminution in the wealth created by the coal industry but about our failure as a nation to capitalize on the growth opportunities and the need to remove constraints, which are preventing us from maximizing these opportunities generated by strong demand."

Italian CASs 2006 turnover up by 25.6% YoY

ANSA reported that the turnover of Italian stainless steel products maker Cogne Acciai Speciali rose by 25.6% YoY in 2006 to EUR 536 million. EBITDA in 2006 stood at between 7% and 8% of the turnover. CAS supplied 175,000 tonnes of products to its customers in 2006 against 166,000 tonnes in 2005.

Mr Roberto Marzorati Cogne Acciai Speciali deputy chairman said its turnover would increase by 38.9% on the year in 2007 to EUR 745 million. According to the forecast for 2007, the company will supply 189,000 tonnes up by 8% YoY.

CAS plans to invest between EUR 30 million EUR and 35 million in 2007 and 2008 to improve and update production processes and machinery. In 2005 and 2006, CAS invested EUR 15 million.

Chinas coal import may boost coking coal prices

Analyst are predicting a rebound for coking coal prices as China becomes a net importer of coal for the first time in its history. China consumed about 2.36 billion tonnes of coal in 2006 and was second biggest exporter of coal in the world behind Australia and its recent turnaround attitude to domestic coal production is behind the change in direction and is good news for Australian miners.

Recent data shows that China imported 14.3 million tonnes of coal in the Q1 of 2007 a 60.4 % YoY with a fall of 32 % for coal exports to 11.4 million tonnes over the same period. According to reports from the China Daily 84.1% of Chinese coal imports come from Association of South East Asian Nations members and Australia.

Citigroup analysts have predicted that the spot benchmark price for hard coking coal will be USD 95 a tonne in 2008 before rising to USD 110 a tonne the following year.

Thermal coal was forecast to fall to USD 48.50 a tonne in 2008 from the USD 50.25 a tonne in 2007 and fall even further to USD 45.75 a tonne in 2009 whereas JP Morgan has forecast a 9.3% rise for thermal coal to USD 54 a tonne from April 1st 2008. It has also predicted thermal coal prices will slip to USD 46.9 a tonne in 2009.

BHL buys Kaifeng zinc smelter in Henan

BHL Resources, a part of global mining concentrates and metal trading entity BHL Group, announced that it has reached an agreement to acquire the Kaifeng zinc smelter located in the Henan province in China.

BHL said the smelter has a nameplate capacity of 40,000 tonne per year but is currently not producing anything. BHL expects to re start one 17,000 tonne per year line within three months and a second 23,000 tonne line in around 6 months. After that the company is planning to lift capacity by a further 50,000 tonne per year.

Mr Alain Baron chairman of the BHL group stated The acquisition of the Kaifeng zinc smelter insures a vertical integration into the activities of the BHL Group. We regard this smelter to be perfectly placed within the already existing activities of the BHL group.

Mexican judge closes coal mine accident case

It is reported that a Mexican judge has recently closed the case against five mine managers and inspectors accused of negligence and homicide in an explosion in 2006 that killed 65 coal miners in northern Mexico.

Mr Sergio Tamez Coahuila state Judge said that the mine operator Industrial Minera Mexico paid compensation of about USD 18,000 per victim allowing the managers and inspectors to clear themselves in accordance with state law.

Mr Jorge Rios state prosecutor had alleged that managers and inspectors at the Pasta de Conchos mine did not fix unsafe conditions detected eight months before the blast. He had asked the judge to order the arrest of 5 mine managers and inspectors in March 2007.

Industrial Minera Mexico is owned by Grupo Mexico SA de CV, a railroad and mining giant with operations in Mexico Peru and the United States. Grupo Mico spent millions of dollars on rescuers who had to battle with high temperatures, poisonous gas and rock falls in trying to reach the men but in the end they were only able to recover two bodies.

Anglo abolishes chairman post in three units

Bloomberg reported that global mining major Anglo American plc has abolished the position of chairman in three of its units to speed up decision making. Ms Anne Dunn a spokesman for Anglo in Johannesburg said in an interview said that the coal, base metals and industrial metals units will no longer have a chairman.

The chief executive officers of those units will now report directly to Ms Cynthia Carroll who took over as CEO on March 1st 2007.

Ms Carrol in a speech at annual general meeting in London on April 18th 2007 said that "I am introducing changes too to our corporate structures so as to up the tempo, reduce bureaucracy and enable faster decision making. I have already removed one layer of management and increased my own interface with the business unit management team."

Ms Carroll took over Anglo as the company switches focus from gold and industrial assets it built up eight decades based in Johannesburg to mining metals used in industry such as copper and nickel.

Simar to expand pig iron capacity

BNamerica reported that Brazilian pig iron producer Simar has decided to carry out plans to expand output capacity. Mr Mauricio Santiago dos Santos director of Simar told BNamerica that "The city of Maravilhas will donate a site for the project and expansion details are still under study."

Mr Santos added that "We will increase our output from some 50,000 tonnes per year to 100,000 tonnes per year. This will happen for sure but we still need to decide if we will do it by using one blast furnace or two."

Mr Santos, without providing a specific budget for the whole project or saying whether it would receive financing, said that a final decision on the number of blast furnaces is due by mid May 2007.

Simar is based in southeast Brazil's Minas Gerais state. Pig iron output from the expansion is due to target Brazil and foreign markets.

German steel industry worried about import from China

South German Newspaper reported that Germany steel industry insiders are feeling pressure from China despite being in a best era ever for steel manufacturing.

To avoid trade conflicts, Chinese government has taken a string of measures to curb massive export, which is attacked by president of German steel federation, who said German is becoming more and more skeptical about China's promise to cut export, as once the world demand plunges, Chinese glut will inevitably bring them threatens.

According to the report, Chinese steel sector hasn't impact severely so far on the European land for following reasons
1. Domestic steel demand in China remains strong
2. Chinese steel manufacturers need to import energy and raw materials for steel making as the European producers do
3. China's advantage in labor force accounts for 10 % to 12% only due to relatively low productivity
4. China's export is mainly to Asia, with some 15% to Europe and 10% to the America.

In Q1, German made crude steel of 12 million tonne, setting record high. Annualized output is predicted at 47.5 million tonne to 48 million tonne, slightly higher than 2006's 47.2 million tonne.

(Sourced from MySteel.net)

China may become net steel importer again in 2010 Report

According to a latest report from a renowned steel consultancy, China may turn to a net steel importer again in 2010 despite its current staggering steel overcapacity and massive steel export.

The report said that China's domestic steel demand would maintain an annual growth of 10% for following years but domestic steel capacity is estimated to increase some 150 million tons by 2010 as a result of capacity removal of 60 million tons. By then, robust domestic demand but moderate capacity growth would turn China into a net importer again.

(Sourced from MySteel.net)

SUEKs Q1 coal shipments to domestic utilities down by 13% YoY

The Siberian Coal Energy Company announced that it has reduced the coal delivery to the domestic market during January to March 2007 quarter by 13% YoY to 17.6 million tonnes at the back of the increase in the exports by 30% to 6.3 million tonnes.

SUEK said that its production moved down by 8% to 23.8 million tonnes due to the lower demand from the utility services which can be explained by rather warm winter.

SUEK covers 30% of the coal delivery to the Russian market and 20% of the total coal exports of Russia.

Western Canadians Wolverine start up slower than expected

Mining company Western Canadian Coal Corp said the start up at its Wolverine mine in Canada has been slower than expected and added that the group's production is fully committed for 2007.

Western Canadian said that start up at its Wolverine mine has been affected by shortages of manpower severe weather and disrupted shipments.

But Western Canadian added that it sees coal shipments of about 3.5 million tonnes for the year to end March 2008.

Sumitomo & Taganito JV to conduct feasibility study in Philippines

It is reported that Japanese Sumitomo Metal Mining Co Ltd. will inject USD 1 billion to build a nickel smelting project in Mindanao in Philippines. Sumitomo said that it has gained cooperation from Zamora groups Taganito Mining Group and that a joint feasibility study covering an area in Taganito town in the province of Surigao del Sur would be launched.

The project aims at a large scale smelting venture and will use high pressure acid leaching and will has 30,000 tonne per year of nickel & cobalt mixed sulfide. Its raw material consists primarily of low grade nickel oxide ore produced at the Taganito mine.

Once results of study showed favorable JV by Sumitomo and Tagannito would be built in 2008 and a HPAL plant also be expected to be built near to Taganito mine. Sumitomo said that the HPAL plant would start operation in 2012 and sustain for about 30 years.

Belons 2006 coal output up by 5.7% YoY

AK&M reported that Russian coal major Belon Group has increased its 2006 output to 3.381million ton up by 5.7% YoY. Its coke output increased by 39% YoY to 1.724 million tonne and steam coal output increased by 15% YoY to 1.657million tonne. The growth in production is attributed to launching of two new mines in operation Novaya-2 and Novobachatsky.

Belon Group invested RUB 3.27 bilion in the development in 2006 and plans to raise it to RUB 5 billion in 2007. The major portion should be spent to realize the projects aimed to raise the capacities 4.7 million ton.

Belon Group involves Listvyashnaya, Novaya-2, Kostromovskaya, Chertinskaya Koksovaya mines, Novobachatsky-1 and Novobachatsky-2 pits, servicing entities Belovopogruztrans, Inskaya automotive base and Sibgormontazh.

Mittal Steel Kryviy Rihs 2006 profit up by 82.7% YoY

Ukrainian Journal reported that Mittal Steel Kryviy Rih saw an 82.7% YOY increase in net profit in 2006 to UAH 2.931 billion. Mittal Steel Kryviy Rihs 2005 net profit was estimated at UAH 1.605 billion.

Powerfuel plans 900MW power plant at Hatfield in UK

Bloomberg has reported that Russian coal major Kuzbassrazrezugol controlled UKs Powerfuel plans to build a 900MW coal fired power plant at Hatfield in northern England using shell gasification technology and carbon capture.

Powerfuel said that construction will take three to four years and may involve building a pipeline to transport carbon dioxide to storage sites in the North Sea.

Recent price increases and political support for coal fired power plants have also encouraged mining companies to consider reopening British coal mines that had been shut down.

Kuzbassrazrezugol bought a 51% stake in Powerfuel in 2006 providing the cash to start mining at the Hatfield Colliery coal mine which was shut down in 2004.

Sino Hua Ans 2006 net profit up by 37% YoY

Malaysian Sino Hua An International Bhd has announced that the audited results ended for 2006. It posted a 37% YoY rise in net profit to MYR 114.98 million in 2006 as compared to MYR 83.66 million in 2005. Its 2006 revenue also rose by 9% YoY to MYR 730.66 million from MYR 672.05 million in 2005.

Mr Tunku Naquiyuddin Tuanku Jaafar executive chairman of Sinu Hua said that net profit exceeded the annualized profit forecast of MYR 105.47 million by 9%, and the actual revenue also exceeded its forecast of MYR 698.87 million by 5%. He said that Our audited results are a testimony to Sino Hua Ans position as one of Chinas leading metallurgical coke producers. We are confident that with ongoing improvements with our production facilities, we will be able to see further improvements in our results in the near future.

Mr Tunku Naquiyuddin said that the gross profit margin improved to 18.2% YoY from 17.7%, making it one of the highest margins achieved by metallurgical coke producers in China. He added that it expected gross profit margin to increase to 21% when its new coal washing facilities commenced operation next month, which would reduce production costs by 5%.

Mr Tunku Naquiyuddin on 2007 year prospects said it expected the growth in net profit to be driven by the high, stable prices of coke and its by-products, due to rising demand for steel. He said that coke is a key ingredient in steel manufacturing. The coke prices averaged at CNY 1090 (MYR 484) per tonne last year. It rose to CNY 1165 per tonne in March.

Sino Hua-An International Bhd, formerly Antah Holdings Berhad, is a Malaysia-based investment holding company.