Indian steel majors not to hike domestic prices to help curb inflation

Indian government has succeeded in extracting an assurance from the domestic steel makers to hold the domestic steel price line during April 2007 to it help contain inflation which slipped to 6.39% for the week ended March 24th 2007 after hovering at 6.46% for previous 3 consecutive weeks as against comfortable levels of 5% to 5.5%. The assurance by the steel industry came amid reports that the Indian steel makers were planning to increase prices by INR 1500 to INR 2000 per tonne for April shipments due to rise in input costs and surge in International prices.

An Indian Steel Alliance delegation, which comprises of steel majors Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, Jindal Steel & Power Limited and JSW Steel, Ispat Industries Limited and Essar Steel and accounts for almost 60% of Indian steel sector, met Mr P Chidambaram Indian finance minister. The delegation assured Mr Chidambaram that the steel industry will hold the prices for this month despite higher input costs and pressure on margins.

Mr Sajjan Jindal later told reporters that "It is not the finance minister alone who should be worried about inflation. Steel is the big item in the wholesale prices-based inflation. We have to support the government to fight inflation. We will not increase the prices for the month of April, but will review the situation next month." Mr Jindal added that input prices of steel like railway freight and finances have gone up lately and the industry's decision to hold the price line would strain its profitability but prices would not be increased for this month to help the government tame rising inflation.

Mr RS Pandey secretary steel said that They are aware of the concerns. If inflation continues to rise, demand will slacken and growth will also slacken, which will impact the industry. The industry understands this.

However the delegation of steel makers stressed that the export duty on iron ore at INR 300 a tonne, as announced in the budget for 2007-8, should stay as it is a critical input for the sector.

Incidentally, the last price hike announce by the Indian steel majors in March 2007 beginning was also rolled back on the request of Indian government to curb inflation.

Vizag Steel achieves INR 9,126 crore turnover in 2006-7

It is reported that Rashtriya Ispat Nigam Limited has achieved sales turnover of INR 9,126 crore during 2006-07 and is aiming to touch the INR 10,000 crore marks in 2007-08. The provisional profit before tax for 2006-07 is projected at INR 2,246 crore.

Mr Y Sivasagara Rao CMD of RINL during a press meet informed that the liquid steel production was 3.61 million tonnes, saleable steel production 3.29 million tonnes and finished steel production 3.01 million tonnes with value added steel production accounting for 1.09 million tonnes. The exports amounted to INR 435 crore against INR 500 crore in 2005-6 as RINL focused on meeting domestic demand despite firm international scenario.

Mr Rao informed that an expansion project to double the plant's capacity to 6.3 million tonne at an investment of INR 8,600 crore was inaugurated during 2006-2007 and piling, civil, & structural works have begun and contracts worth INR 3,500 crore have been awarded for the expansion project.

Mr Rao also outlined the corporate plan of RINL, which envisages increasing the capacity of the plant gradually to 6.3 million tonnes by 2008-2009, 8.5 million tonnes by 2009-2010, 13 million tonnes by 2013-2014 and 16 million tonnes by 2017-18 at an investment of approximately INR 25,000 crore from internal resources.

CILs 2006-7 profit dip by 5.3% YoY

Coal India Limited has announced a INR 464 crore drop in its 2006-07 pre tax profit to INR 8,212.69 down by 5.3% YoY as compared to INR 8,676.72 crore in 2005-06 but it surpassed the target of INR 7,014 crore rupees. After adjustment of tax and dividend to the government, it has clocked profit of INR 3,233.24 crore in 2006-07 down by 302% YoY as against INR 4,635.83 crore in 2005-06.

CILs all 7 subsidiaries have reported profits including Eastern Coalfields Ltd and Bharat Coking Coal Ltd which had incurred losses until 2004-05.

CILs production in 2006-07 increased by 5.1% YoY to 360.94 million tonnes but fell short of its target of 363.80 million tonnes. Four of its subsidiaries surpassed their production targets and three of them missed theirs.

Mr PS Bhattacharya chairman of CIL said that Due to non revision in coal prices, inflationary impact on costs remained uncovered. Profits were also hit due to the stay on e marketing coal.

Mr Bhattacharyya expressed his worries about increase in stock with CIL as the coal stocks increased by 10.04 million tonnes to 42.91 million tonnes as on March 31st 2007. He said We are not comfortable with the stock position. We need to concentrate on liquidating stocks.

Indian ports clock 9.5% YoY growth in cargo handling

As per data released by Indian Ports Association India major ports handled a total of 463.84 million tonnes of cargo in 2006-07 up by 9.51% YoY as compared to 423.56 million tonnes handled in 2005-06. However the cargo handled by them fell short by 0.4% as compared to the target of 465.7 million tonnes for 2006-07.

The cargo handled by 12 major ports and YoY growth registered is as under

In million tonnes

NTPCs net profit for 2006-7 up by 15.57% YoY

National Thermal Power Corporation has recorded a provisional net profit of INR 6,726.4 crore in 2006-07 up by 15.57% YoY as against INR 5,820.2 crore in 2005-06. Its net sale during 2006-07 increased by 17.2% YoY to INR 30,638.7 crore from INR 26,142.9 crore in 2005-6. NTPCs gross revenues in 2006-07 increased by 15.81% YoY to INR 33,299.7 crore from INR 28,753 crore in 2005-06.

The major highlights of the operational performance of NTPC in 2006-07 include the following

1. Coal based Stations performed at the highest ever Plan Load Factor of 89.43% as compared to 87.67% in 2005-06. 7 coal based stations Dadri, Unchahar, Vindhyachal, Simhadri, Rihand, Tanda and Talcher-Kaniha have achieved more than 90% PLF. All the taken over stations operating at more than% PLF

2. Generated 188.74 Billion Units an increase of 10.41% YoY

3. Contributed 28.5% of the total electricity generated in the country during 2006-07 with 20.18% share of the total installed capacity of the nation.

4. Uninterrupted running of Vindhayachal Unit No 3 of 210 MW for 559 days is a new national record.

5. Turnaround at Unchahar project where from PLF of 18% at the time of takeover to present PLF of 95.59%.

6. Singrauli, the flagship station of NTPC completes 25 years of generation

NTPC is targeting to increase power generation capacity to 50,000 MW by 2012 and 75,000 MW by 2017 from the present 26,000 MW through a mix of new plants and acquisitions, especially state electricity boards.

Mr T. Shankarlingam CMD of NTPC told reporters NTPC has adopted a multi-pronged growth strategy to achieve 75,000MW plus installed capacity by 2017. The strategy includes capacity addition through Greenfield projects, expansion of existing stations, joint ventures and takeover of SEBs. He said that NTPC would also focus on adding hydel capacity and foraying into non conventional and nuclear power generation even though coal would be its mainstay.

TATA Steel non committal over jobs in Corus

Western Mail reported that TATA Steel is non committal over job security of Coruss 7900 employees in Welsh

The report mentions that Mr B Muthuraman MD TATA Steel took a philosophical approach when asked about the future of Wales 7,900 steelworkers. Mr Muthuraman answered that "I am not a soothsayer neither am I a futurist." He added that "Just like a man needs to be healthy to live long a business needs to be healthy to have a long life."

However Mr Muthuraman added that "Everyone I have met here is brimming with confidence and full of energy. I can tell you from personal experience there is a construction boom going on in India and there will be a market for steel produced in India and steel produced in Europe."

Corus employs 7,900 in Wales including more than 3,000 at its flagship Port Talbot plant.

Mr Muthuraman, accompanied by Mr Philippe Varin CEO of Corus, was touring Coruss Port Telbot works in Welsh for the first time since acquisition.

Indian government lifts freeze on SEZs

Indias Empowered Group of Ministers on Special Economic Zones has to lift the current freeze on SEZs, with tighter rules and prescribed a ceiling on the size of SEZs, which has now been fixed at an upper limit of 5000 hectares. A comprehensive rehabilitation policy is being finalized, which would include employment to at least 1 person from each displaced family.

Mr Kamal Nath union minister of commerce & industry announced that the following decisions were taken at the EGOM meeting

1. Upper limit of the area required for multi product SEZs to be fixed at 5000 hectares. However, state governments may prescribe a lower limit.

2. The minimum processing area limit be fixed uniformly at 50% for multi product SEZs as well as sector specific SEZs. Earlier, the minimum processing area requirement for multi product SEZs was 35%, with a provision for relaxation up to 25% by the board of approvals and it was 50% for sector specific SEZs).

3. In respect of pending applications for SEZs, these may be processed for in principle, formal approval, notifications subject to the condition that the State Governments would not undertake any compulsory acquisition of land for such SEZs.

4. Notification in respect of the 83 cases of formal approvals, documents for which have been submitted by the developers may be issued by the department of commerce after due verification, including issues concerning any dispute relating to land.

5. In respect of other formal approvals, notifications may be issued as and when the proposals are received and verification procedures are completed.

Ministry of Rural Development is requested to reformulate a comprehensive land acquisition act to address all relevant issues. A comprehensive Resettlement and Rehabilitation Policy will be worked out ensuring livelihood from the project to at least one person from each displaced family.

The nodal authority for approving SEZ proposals has so far okayed 234 proposals. The 234 SEZs are projected to cover an area of 33,808 hectares.

Industry chambers welcomed the decision to restart the process of granting approvals to SEZs. Associated Chambers of Commerce and Industry of India welcomed the decision to set a ceiling of 5,000 hectares for SEZs and described it as a praiseworthy step that will settle for good the controversies over SEZs. The Confederation of Indian Industry hoped that the decision would put an end to compulsory land acquisition by state governments and limits on the size of SEZs will end the ambiguity about their future. The Federation of Indian Chambers of Commerce and Industry said that the decision will clear uncertainties and give a clear signal that SEZs are here to stay.

East Coast Railways 2006-7 freight traffic up by 7.4% YoY

Indian East Coast Railway has posted a 7.4% YoY growth in freight traffic at 83.8 million tonnes in 2006-07 up from 78 million tonnes in 2005-06, but just felt short of the 84 million tonnes target set for the year.

The position of some of the major cargos is as under

The drop in the throughput of raw material for steel plants is attributed to the critical law and order situation in the Bacheli area under the National Mineral Development Corporation so much so that for nearly 3 months beginning November 2006 no loading of rakes could be undertaken.

Whereas, the drop in ore shipments is due to the diversion of iron ore traffic from rail movement to pipeline movement in slurry form. Essar used to load five rakes a day for transportation of along the Kottavalasa-Kirandul line, now only three rakes are loaded while the balance two rakes worth of ore is transported in slurry form by the pipeline.

Nickel hits all time high of USD 50,000 per tonne

Nickel hit a new all time intraday high for the second day in a row, reaching the psychologically significant USD 50,000 level, as inventories slid by a further 312 tonnes or 6 % to 5,124 tonnes.

Mr Martin Hayes an analyst of Basemetals.com said Prices have since eased to trade slightly lower although they remain elevated He said the market has had this level in its sights for a while. The LME stocks have provided it with an excuse to hit USD 50,000.

An analyst at Barclays Capital said The low level of stocks highlights the market's vulnerability to supply disruptions which have plagued the nickel market and been a key factor behind the sustained rally in price.

Analysts said that prices have been buoyed by following supply side constraints

1. Strike at the La Oroya mine and smelter run by the US' Doe Run in Peru, which has entered its third day
2. Closure of Ivernia Inc's Magellan mine in Australia, which is responsible for 3% of the world's lead supply, pending the outcome of an investigation into lead poisoning at the Esperence port.
3. The threat of strike action at the Voisey's Bay nickel mine in northern Labrador
4. Reports of a dip in production from Australia's Minara Resources

Nickel has gained almost 50% since the start of 2007 and is more than twice as expensive as it was this time a year ago. China has helped fuel the boom.

TMKs Q1 pipe shipments up by 12% YoY

One of the worlds largest oil and gas pipe producers and the market leader of the Russian pipe industry, OAO TMK announced its production results for the period from January 1st to March 31st 2007. TMK shipped 783,800 tonnes of pipes, which is almost a 12% increase on the amount shipped in the same period last year.

Volumes of shipped pipe products in first quarter of 2007

In thousand tonnes

Overall welded pipe shipments increased by 11.3%, within which large diameter pipe shipments increased by 6.3%.

The increase in the shipments of TMK pipe products in Q1 2007 is attributed to new production capacity and operational efficiencies coupled with an increase in the demand for pipes in the Russian market.

MEPS forecasts decline in SS prices by the end of 2007

As the hot rolled stainless steel transaction values went up significantly in Asia and North America to reflect higher nickel costs, offset by declining basis values in the EU. MEPS see scope for further substantial increases in the short term in Asia and North America with more modest figures expected in the EU.

MEPS said that Basis values are forecast to decline in both the EU and North America over the next few months. However, lower alloy surcharges should help to alleviate the downward pressure in the medium term.

MEPS added that Higher stocks and lower demand will put pressure on the mills to discount prices in all regions during the second half. This will lead to an inventory depletion phase which will further exacerbate price erosion. In the longer term, we expect stainless transaction values to decline in all regions to the end of 2007.

USs steel imports in March set to increase

American Iron and Steel Institute, based on the US commerce departments most recent Steel Import Monitoring and Analysis data, reported that steel import permit applications for the month of March 2007 totaled 2.824 net tons up by 5% over 2.694 million net tons permits recorded in February 2007 and a 6% increase from the February preliminary imports total of 2.655 million net tons. March imports are also 6% higher than the 2005 monthly average.

Import permit tonnage for finished steel totaled 2.345 million net tons in March 2007 as against preliminary imports of 2.140 million net tons in February 2007 and a monthly average of 2.099 million net tons in 2005.

For the months of March 2007, the largest volume of steel import permit applications for an individual country was Canada at 549,000 net tons. Other notable countries include China at 368,000 net tons, Brazil at 235,000 net tons and Mexico at 206,000 net tons.

Finished steel import permit applications for Chinese steel were up by around 12% in March 2007 as compared to the preliminary imports totals for February 2007. March 2007 marks the tenth consecutive month that China will be the largest or next to largest foreign supplier of steel to the US market.

Mr Andrew G Sharkey III president and CEO of AISI said that While Imports have declined from 2006 record levels they remain high by historical standards so we continue to monitor imports closely. We continue to have serious concerns about foreign market distorting trade practices in steel and steel containing products. Against this background, we are working with Congress to strengthen Americas vital trade laws to ensure market-based outcomes for efficient US Producers.

Mechels Q1 steel production up by 9% YoY

Mechel OAO announced its operational results for the first quarter of 2007 as under

Volume in thousand tonnes
Change is with respect to Q1 of 2006

Mr Alexey Ivanushkin COO of Mechel said "The first quarter of 2007 witnessed growth in both of our segments mining and steel production. Coal production output growth was mainly due to an increase in the production of steam coal, which exceeded production of coking coal in our South Kuzbass plant for the first time in history. We also continued to scale up our production of nickel given the unprecedented growth in prices for nonferrous metals. During the quarter, the price of nickel exceeded USD 50,000 per tonne.

Mr Ivanushkin added that In the steel segment, positive results were largely due to the company's progress in increasing the share of concasted steel while reducing costs by decreasing the amount of materials consumed in flat steel production. We recently commissioned two concasters at our Chelyabinsk metallurgical plant and our Romanian plant, Mechel Targoviste. We also continued to increase production output of higher-value end products such as long and flat products as well as hardware, while reducing the production of semi-finished products. In stampings production, we concentrated on the production from high-end quality steel, which brought about a slight decrease in production volumes of plain stampings. To achieve this production, we increased output of specialty steel forgings at our Chelyabinsk metallurgical plant.

He concluded that The sharp increase in coke production was achieved due to the acquisition of the Moscow Coke and Gas plant, as well as the commissioning of a new coking battery at our Chelyabinsk metallurgical plant last year.

SA regulator approve Evrazs buy of Highveld

It is reported that South Africa's Competition Commission has approved the purchase of steelmaker Highveld by Evraz Group.

Evrazs purchase of 79% of Highveld for USD 678 million from Anglo American Plc was announced in July 2006 and the European Commission has already approved the deal.

Highveld, South Africa's second largest steel maker after Mittal Steel SA, is the world's top supplier of vanadium, used in the production of special and alloy steels.

Hebei Province to speed up obsolete capacity elimination

Under the circumstances of global iron & steel industry's M&As, Hebei Province, with highest crude steel outputs in China for consecutive five years, is now designing future healthy development. Mr Song Jijun vice chairman of Hebei Metallurgical Trade Association was quoted as saying that In 2007, Hebei Province's iron & steel industry will certainly step on regrouping and recombination."

By 2010, there will not be independent iron making, steel making and hot rolling capacity in Hebei Province. 202 steel enterprises will be cut to some 40 with top ten steel makers' accumulative crude steel outputs accounting for over 75% of the province's total crude steel output. Recombination helps to sharpen Hebei Province's industrial competitive edge. Industry of smelting and pressing of ferrous metals in Hebei Province realized added value of CNY 100.1 billion in 2006. The province's sheet & plate product outputs accounted for 53.9% of the provincial total steel product outputs.

At present, new Tangshan Steel Group, regrouped on the basis of Tangshan Steel, Xuanhua Steel and Chengde Steel, is now applying itself to its inside management and Caofeidian Project. In south Hebei Province, Handan Steel is also under recombination. Except establishment of new Tangshan Steel Group and new Handan Steel Group, Caofeidian's high end sheet & plate production base and Chengde's vanadium and titanium goods production base are also under construction. The Province will focus on production of sheet & plate products, bar products, wire rod products, pipe steel products, sections and specialty products.

Insiders stated that there are so many small sized steel enterprises in China that problems of resources, energy, transportation and environment will be further exacerbated if the nation failed to phase out of date capacities. It is said that China will wash out about 100 million tons of backward steel capacities during 11th five year period, perfecting China's iron & steel industry industrial distribution.

(Sourced from MySteel.net)

Stelco to shut HSM at Hamilton and transfer to Lake Erie Mill

Stelco Inc announced that it will transfer all hot strip processing to its modernized Lake Erie mill and shut the hot strip mill at its Hamilton Steel operations to improve its efficiency, product quality, and lower operating costs.

The expanded Lake Erie Steel capacity will allow Stelco to take the next step in its strategy to become a low cost producer by shutting down the 56" hot strip mill at its Hamilton Steel operations. The Hamilton hot strip mill, which has operated since the 1940's, has become a high cost operation with limited support from the marketplace.

The implementation of this initiative will reduce the work force at Hamilton Steel by more than 300 positions. This will occur through the reduction and displacement of employees working directly at the Hamilton hot strip mill, as well as the elimination of certain support services in maintenance, shops, and coil processing. Stelco is planning to achieve this reduction through a combination of retirements, layoffs and severance.

Mr Rodney Mott president & CEO of Stelco said "The Hamilton employees continue to work hard to improve productivity and reduce costs, but it is impossible to be competitive with obsolete equipment. The decision to reduce rolling operations at Hamilton and to optimize Lake Erie is our best choice for ensuring Stelco's long term success".

Indonesia issues new licenses for producing tin

Reuter reported that Indonesias main tin producing island of Bangka has issued more operating licenses for local smelters, bringing the number of small refiners that may resume operations to 11. The list of tin smelters includes CV DS Jaya, CV Donna Kembara, CV Bangka Putra Karya, CV Bukit Timah, CV Duta Putra Bangka, PT Prima Timah Utama, PT Tinindo, PT Mitra Stannia Prima, PT Putra Bali, PT Yinchengindo and CV Bilitim Makmur Lestari.

Mr Amrullah Harun the head of the Bangka-Belitung energy and mines office at the provincial capital of Pangkalpinang told Reuters that "Between 10 to 11 smelters have received operating licenses do far. But they have not resumed operations. But Mr Harun said the smelters could not export refined tin without an export license. He said "Permits to export refined tin will come from the trade ministry.

An industry source said although 11 small smelters had received operating licenses from the local government in Bangka but only CV Bilitim Makmur Lestari had been given an export license issued by the trade and industry ministry in Jakata. Worlds largest integrated tin miner, PT Timah has already secured an export license and is not affected by the crackdown.

A government crackdown on illegal mining sparked worries about tight global supplies and sent the price of tin on the London Metal Exchange to a record high around USD 14,500 per tonne in late March 2007. Dozens of small smelters closed last October when Jakata issued new rules for exports which included producing refined tin with a minimum 99.85% purity and providing proof of making royalty payments to the government.

Indonesia is the worlds second largest producer of tin with China being that the largest.

Metalloinvest inks HBI supply deal with Corus

Reuters reported that Russian Metalloinvest announced that it has agreed to supply Corus Group with up to 300,000 tonnes of hot briquette iron in 2007 but did not disclose the deal's value.

As per report, the raw material will be supplied from the Metalloinvest's Lebedinsky GOK iron ore mine, which is Russia's biggest and Europe's only producer of HBI with annual output of 1 million tonnes.

Metalloinvest has earlier announced that it would invest about USD 3 billion by 2012 to raise output of HBI to 8.5 million tonnes from the current 1 million. Its Lebedinsky GOK plans to double output capacity as early as 2007.

China substituting nickel with pig iron Eramet

Eramet SA said that China may more than double production of nickel pig iron used as a replacement for nickel as the price of the pure metal soars to record.

Mr Jacques Bacardats, president of Eramet at a press conference held in New Caledonia said that China, the world's largest consumer of nickel, may produce 60,000 tons of the pig iron in 2007 up from 25,000 tons in 2006.

Mr Bacardats said Chinese steelmills including Baosteel Group Corp. are increasingly relying on nickel pig iron, which contains between 1% and 3% of nickel, to make stainless steel to contain costs. Mr Bacardats said that China may import 1 million tons of nickel ore from New Caledonia this year to make the pig iron.

He said this product, sold well below market prices, is in direct competition with traditional products such as ferronickel and the high prices encourage users to seek substitute materials to nickel.

Timken orders a precision sizing mill & bar finishing end for Canton mill

The Timken Company has placed an order with SMS Meer of Germany for the expansion of its existing bar mill at the Harrison Steel Mill at Canton in Ohio with the objective of extending its product size range, increasing mill capacity and improving the product quality. Following the expansion, production of SBQ bars from 25mm to 170mm round will be possible with sizes up to 127 mm produced through the new equipment. Commissioning is scheduled for mid-2008.

The expansion comprises a 3 roll Precision Sizing Block and a new bar finishing end with cooling bed, cutting units and loading facilities. The PSM will be installed down line of the existing rolling mill, allowing smaller sizes to be produced and close rolling tolerances to be achieved. In addition, the use of the PSM will permit a standardized pass design to be employed in the roughing and intermediate mill and the infinitely variable production of finished sizes by means of roll adjustment.

The PSM consists of five rolling cassettes, each with three rolls. The rolls will be adjusted hydraulically and permit adjustment under load, including Automatic Gage Control and monitor control using a laser measuring device installed behind the PSM for product size measurement. A CARTA process model is provided for setting the process parameters.

The scope of supply also includes a combined rotary two crank shear for cutting the bars to cooling bed lengths, a rake type cooling bed with braking slide delivery system, as well as finishing and loading facilities. The bar layers are cut to length by two abrasive-disc cutting machines. The complete electrical equipment and automation system, training and supervisory services also belong to the scope of supply.

Langfang Fuqiang's 1st tinplate line commissioned

It is reported that Langfang Fuqiang Group's tinplate line with annual capacity of 100,000 tonnes has been put into operation.

As per report, constriction of another tinning line will start in July 2007 with commissioning scheduled by the end of December 2007.

With both the lines in operation, Langfang Fuqian, would realize output value of CNY 1.4 billion.

(Sourced from MySteel.net)

Minaras Q1 nickel production reduces due to power supply issues

Australian nickel miner Minara Resources Ltd produced 7,291 tonnes of nickel during January to March 2007 as compared with 7,302 tonnes in January to March 2006 quarter and 8,262 tonnes in October to December 2006 quarter.

Minara said the operation lost about eight days of production during the quarter due to 2 unscheduled power related issues. Mr Peter Johnston CEO of Minara said that "Production was impacted in the quarter due to two unrelated power outages. Once rectified, production returned to a steady profile."

Despite the drop in production in January to March 2007, Minara reiterated its full year production forecast of 32,000 to 35,000 tonnes. Mr Johnston said "Despite the production interruptions, record nickel prices continued to deliver exceptional returns to Minara.

Murrin Murrin is a JV between Minara, which holds 60% of the project with Glencore International holding the balance 40%. The Murrin Murrin operation, which is a high pressure, acid leaching process used to exploit low grade ore has struggled with expensive repairs since its start up in 1999. The mine is near Leonora in Western Australia's northern goldfields region.

J Mendes starts up new iron ore mine in Igarapcity in Brazil

BNamericas reported that Brazilian iron ore mining group J Mendes has kicked off operations at is new mine in Minas Gerais state. The 1.2 million tonne per year mine in Igarapcity was expected to start up earlier this year, but operations were delayed due to heavy rains in the region.

Its output of lump ore is due to reach 300,000 tonne per year, while sinter feed and pellet feed production outputs are due to total 600,000 tonne per year and 300,000 tonne per year respectively. Sales from the mine are due to focus on the Brazilian market.

J Mendes, based in Minas Gerais, was founded in 1966. The group expects total output to reach 7 million tonnes per year in 2007, with production coming from its four iron ore mines, compared to 5 million tonne in 2006.

Syrian Hadeed Hama plans to increase meltshop capacity

It is reported that Syrian Haddeed Hama is planning to increase its melt shop production capacity up to 400,000 tonnes per year as against 70,000 tonne production in 2006, after abandoning the USD 53 million investment proposals by the Austrian Hares Group in 2006.

As per reports, the controlling authorities of this development process have chosen implementation of plans in stages and proposed with first stage as developing the melt shop by Indian loan which amounts to USD 25 million. It is expected that a tender announcement will be published to develop the company's melt shop. It is also expected that Indian companies will be the only candidates to participate in this tender because the Indian loan was transferred for the development of four mills melt shop, reinforcing steel mill, steel pipes mill and a mill to produce forgings.

The development plan targets increasing the present production capacity of the melt shop to satisfy the requirements of the reinforcing steel mill affiliated to the company or to satisfy the requirements of the existing mills in Syria belonging to the private sector, the present number of which exceeds five mills importing their requirements of billets from the world markets.

Haddeed Hama is the only company in Syria, which has a meltshop for melting scrap for making steel to feed its rebar mill, which produced about 70.000 tonnes in 2006. Hadeed Hama company achieved net profits of SYP 346 million in 2006 (USD 6.9 million) from total sales of SYP 3.1 billion (USD 59.4 million).

ConsMin resumes manganese mining at Woodie Woodie

Australian Consolidated Minerals Ltd announced that normal operations have resumed at its Woodie Woodie manganese mine located 400 kilometres south east of Port Hedland in West Australia after disruptions from tropical cyclones which lasted 10 days in mining and haulage and 2 to 3 days in treatment. ConsMin said that its full year 2007 guidance remains unchanged.

Consolidated Minerals said that "The Company responded by treating more easily accessible but lower yielding alternative ore stockpiles during this period. The Company confirms that the disruption to operations has not changed its financial year manganese production guidance of 900,000 to 925,000 tonnes, which factored in potential wet season impacts."

It also said based on current freight rates, the price for manganese lump ore for the full 2007 financial year is expected to rise by 8% to 10% on the first half of the year, while chrome is expected to rise 6% on strong stainless steel production in China.