May, 02 2007
JSW Steels 2006-07 profit up by 51% YoY
JSW Steel Ltd has posted a profit after tax of INR 4132.50 million for the January to March 2007 quarter up by 0.63% YoY as against INR 4106.80 million for January to March 2006 quarter. Its total income net of excise in this quarter was INR 25792.70 million up by 30.76% YoY as against INR 19724.30 million in January to March 2006 quarter.
JSW Steel Ltd has posted a profit after tax of INR 12920.00 million for 2006-07 up by 50.85% YoY as against INR 8565.30 million for 2005-06. Its total income net of excise has been recorded at INR 86995.90 million for 2006-07 up by 31.8% YoY as against INR 65984.90 million for 2005-06.
JSW Steel Ltds highlights for the year 2007 include
1. Crude steel production 2.65 million tonnes up by 18% YoY
2. Saleable steel sold 2.674 million tonnes up by 26% YoY
3. Net turnover INR 8594 crores up by 38% YoY
4. EBIDTA of INR 2922 crores up by 37% YoY
5. PBT of INR 1915 crores up by 47% YoY
6. PAT of INR 1292 crores up by 51% YoY
Kalinganagar tribals to continue opposition to TATA Steels plant
Statesman News Service recently reported that the Visapan Virodhi Jan Manch, leading the tribals agitation against displacement due to industry, has announced to intensify its stir against the proposed TATA Steel plant at Kalinga Nager in Orissa by laying a siege to the proposed construction activities.
Visapan Virodhi Jan Manch organized a meeting with various organizations which are extending their support to it at Ambagadia, in which hundreds of tribals, including women and children, participated with their traditional weapons in their hands to decide their future course of action. The meeting vowed to fight against land acquisition.
Mr Chakradhar Haiburu Junior convener of Visapan Virodhi Jan Manch said that We will seize further construction of the Tata Steel. We have not forgotten that 14 of our people were gunned down and had laid down their lives for the struggle. If the situation requires so, we would not be afraid of shedding our blood again. Mr Haiburu said that during past 16 months, TATA Steel personnel have not been able to enter the area and that they should forget construction of the project.
Mr Nati Angarai, another activist said that after the road blockade was lifted from Kalinga Nagar with the intervention of the Orissa High Court, the state government has been making tall claims and giving an impression that all matters had been resolved. He said But we categorically state that the issues are yet to be resolved and we will oppose the proposed plant.
Visapan Virodhi Jan Manch was formed following the death of 14 tribals, including a school student, in police firing on January 2nd 2006, when the tribals clashed with the police.
Indias coking coal import in April hit by congestion at Newcastle
It is reported that the throughput of imported coking coal in the three east coast ports of Haldia, Paradip and Visakhapatnam during April 2007 will be less than projected.
But neither the ports concerned, nor the Railways nor the importers will be responsible for it. An acute congestion in the loading ports in Australia is believed to have contributed to a situation which is causing concern to Indian ports, the railways and steel makers.
The pre berthing detention at Australian coal terminal, which was 7 to 10 days has gone up to nearly 30 days. At one point, Newcastle had as many as 90 ships waiting. The present congestion in the Australian ports is believed to have been caused by several factors such as bottlenecks in the railway systems, expansion work in some of the major coal ports and other factors. For example, the bottlenecks in the railway systems in New South Wales have prevented miners from executing orders on time, causing ships to queue up and hiking the cost for suppliers. The capacity expansion work at the Newcastle port, from the present 100 million tonne to 166 million tonnes by 2009, has affected the normal functioning of the port, creating the problem of congestion. Among other factors are accidents and unfavorable weather condition.
India's steel sector imports an estimated 20 million tonnes of coking coal from Australia and the volume will continue to rise. According to one estimate, by 2010 the steel sector's requirement of coking coal will rise to 40 million tonnes, the bulk of which say about 35 million tonnes or so, is to be met from imports, and by 2020 the requirement is set to rise to 70 million tonnes, 85% of which will be imported.
The present situation may be an eye opener to the importers about the kind of strategy they might be required to work out in the event of any exigency in future.
Natural Resources plans a 0.5 million tonne steel plant in WB
The Telegraph reported that Singapore based Natural Resource Pte has proposed to the West Bengal Industrial Development Corporation for setting up a 0.5 million tonne steel plant at West Midnapore in West Bengal at an investment of INR 500 crore. Natural Resource has identified 500 acres at Khemashuli near Kharagpur for the plant.
The unit will come up in phases. The first to be operational in 18 months from the start of the groundwork will produce 0.35 million tonne tonnes of pig iron. Wire rods and TMT bars will be produced in the second phase. It plans to procure iron ore fines from Jharkhand and utilize coke form own units.
Mr Buddhadeb Chatterjee of Natural Resource Pte told The Telegraph that his company would use Chinese technology and Shandong Metallurgical Research Institute of China, which is likely to provide the technology, is also expected to invest in the project. The project will be funded by foreign debt and equity.
Natural Resource, which has a turnover of USD 100 million, is now involved in iron ore and coke trading between India and China. Mr Chatterjee also owns three coke oven factories in India.
Indian railways freight earnings in 2006-07 up by 15.5% YoY
The performance of Indian Railways in respect of loading has gone up from 666.51 million tonnes during 2005-06 to 728.41 million tonnes during 2006-07, an increase of 9.29% YoY. Its freight earnings have also gone up from INR 36286.97 crore during 2005-06 to INR 41904.80 crore during 2006-07 registering an increase of 15.48%.
The Diesel Locomotive Works, Integral Coach Factory and Rail Coach Factory produced 186 locomotives and 1251 & 1319 coaches respectively during 2006-07 exceeding the target by 36 locomotives and 10 & 83 coaches. Rail Wheel Factory produced 126,126 wheels and 58,259 axles during the same period compared to the target of 126,080 wheels and 58,723 axles while Chitranjan Locomotive Works produced 150 electrical locomotives equalizing the target.
OMC turnover likely to cross INR 1000 crore mark
It is reported that Orissa Mining Corporations turnover in 2006-07 is likely to exceed INR 1,000 crore marks as against INR 680 crore recorded in 2005-06. OMCs profit in 2006-07 is estimated at INR 540 crore up by 67% YoY as against INR 324 crore in 2005-06.
OMC has made several achievements in production during 2006-07 and sales of iron ore, chrome ore, chrome concentrate and manganese ore has also increased considerably.
OMCs iron ore production is likely to touch 4.3 million tonnes in 2006-07 up by 25.7% YoY against 3.4 million tonnes in 2005-06. OMC is also reported to have achieved very high increase in chrome ore and chrome ore concentrate production during 2006-07.
International investors to acquire 40% stake in Pipavav Shipyard
It is reported that leading international financial investors including New York Life, Indus Capital and Trinity Capital will acquire a 40% stake in Pipavav Shipyard & Engineering Limited. Mr Nikhil Gandhi promoted SKIL Infrastructure, which floated Pipavav will hold a 35% stake in PSEL while Indian financial institutions like IL&FS, IDBI and Exim Bank will hold the remaining 25%.
Afcons India has been awarded a INR 330 crore contract to build a 600 meter long dry dock in Pipavav, worlds 3rd largest yard after Hyundai yard in South Korea and Dubai Drydocks. PSEL is also developing over 700 acres of land in Pipavav for ship building activities and will spend around INR 1,000 crore over the next 2 years to build additional infrastructure and besides, the yard will build 12 large ships and other offshore assets simultaneously.
Pipavav Shipyard, part of which is already operational, has won USD 356 million worth of orders from European companies Frederiksson of Scandinavia and the French Bourbon for building ten 75,000 DWT bulk carriers.
MMTC posts highest ever net profit during 2006-07
Public sector trading company MMTC Ltd has posted its highest ever net profit of INR 125.9 crore for 2006-07. MMTC's turnover during 2006-07 also grew by 42% YoY to INR 23,205 crore as compared to INR 16,362 crore in 2005-06. MMTCs turnover includes best ever exports of INR 3,428 crore, all time high imports of INR 18,443 crore and domestic trade INR Rs 1,334 crore.
MMTCs highlights for 2006-07 include
1. All time high turnover up by 42%
2. All time high net profit up by 16%
3. All time high exports up by 17%
4. All time high imports up by 56%
5. Al time high productivity up by 45%.
Mr Sanjiv Batra CMD of MMTC attributed the performance to the strategic initiatives undertaken by the company reflecting the value creation through effective combination of goods, services and investment. The broad based growth in all business lines, debt free capital structure with adequate cash reserves and a sound net worth provided robust base for companys future growth. He said that it was possible through effective combination of goods, services and investment.
BHELs Strategic plan 2012 to leverage overseas business
Bharat Heavy Electricals Ltd has set a target of increasing its overseas business to USD 10 billion from the current USD 4 billion as part of its Strategic Plan 2012.
BHEL in a statement said that it is looking at exports as one of the key growth drivers and is targeting a 7 fold increase in physical exports from the current levels. BHEL also plans to position itself as a regular engineering procurement construction contractor in the international market and pursue the mergers and acquisitions route to avail inorganic growth opportunities for enlarging its export operations.
BHEL said that it had an outstanding physical export order book of over USD 1 billion and had recorded a 49.25% increase in its contracts at INR 1,903 crore in 2006-07 as compared to the average yearly contracts of INR 1,275 crore in the last 5 years.
Some of the major overseas include
1 Power equipment contracts of over 900 MW
2. Transformer capacity orders of 5,600 MVA
3. 240 MW ADB funded gas turbine based power plant at Siddhirganj from Bangladesh's Electricity Generation Company on EPC basis
4. Orders from Jordan based MGI's 500 MW gas turbine based power plant
5. Contracts of gas turbines for co generation application 2x26 MW for Oman Refinery Company
6. Contracts for renovation and maintenance and upgrade of Varzob Hydro Project of Barji Tajik from Tajikistan
7. Compressors from French Grande Paroisse
8. 23x125 MVA transformers from Egypt.
Patel Engineering plans 1200MW thermal power plant at Bhavnagar
Patel Engineering has recently announced an INR 5,000 crore investment for setting up its maiden 1200 MW thermal power plant near Bhavnagar in Gujarat, thus mark its foray into power generation segment.
According to the announcement, the thermal power plant would be set up through the company's subsidiary Patel Energy Ltd and the electricity generated would be sold to power traders, captive consumers and state governments. Patel Engineering informed that the proposed project would be undertaken under a special purpose vehicle and would be funded by a mix of debt and equity. Coal for the plant would be imported.
Patel Engineering's current order book without the said project is around INR 5,000 crore, out of which 55% of the orders are from multi-purpose water supply and power projects, 25% were from irrigation and 20% from transportation and other sectors.
ISMT board appoints Mr V Balasubramanian as joint MD
ISMT Ltd has informed BSE that companys board of directors at its meeting held on April 30th 2007 had resolved to appoint Mr V Balasubramanian as joint MD of the company from his present post of executive director operations, subject to approval of the members.
Mitusi nominees on Sesa Goa board resign
Sesa Goa Ltd has informed BSE that companys board of directors at its meeting held on April 28th 2007 has accepted the resignations of Mr H Takani, Mr A Tanaka and Mr I Funaki as directors of the company.
Chinese coke export surges despite high prices
Chinese coke export prices have jumped to USD 215 to USD 230 per tonne FOB at Tianjin port. As a matter of fact, both domestic and export prices for Chinese coke have been on the rise since April 2007. Export prices go up accordingly and record an accumulated increase of USD 50 per tonne in the first four months of 2007.
Prices in Chinese domestic market accelerated to rise after entering 2007, bolstered by the increase in coal prices, reinforcement in environment protection programs and rising rail transport cost.
Shanxi Coke Guild plans to shoot up price by another CNY 120 to CNY 150 per tonne in May 2007 following increase of CNY 30 per tonne in January 2007 and CNY 50 per tonne in February 2007.
In addition, the rise in coke export tax rate is also one of key drivers of the increase. People are anticipating a further improvement to 15% to 20% for export tax following an addition of 5% in December 2007.
Statistics from Customs show that China exported 1.526 million tonnes of coke in March 2007 up by 86% more than that in February 2007 with a YoY increase of 42%.
(Sourced from Mysteel.net)
Jinchuan buys 11% stake in Allegiance Mining
Bloomberg reported that Jinchuan Group Co, which controls 90% of Chinas output for nickel, has agreed to buy an 11% stake in Australian nickel mining company Allegiance Mining NL for AUD 38.5 million (USD 32 million).
Allegiance in a statement said that Jinchuan which has a sales agreement with Allegiance for output from its Avebury mine in Tasmania State will buy 48 million shares at AUD 80 cents each 13% discount to its last closing price.
The money raised will be used to develop the Avebury mine that is forecast to produce 8,500 tonnes of nickel in concentrate annually.
Mining majors concerned over abolishment of AWAs
Miners majors BHP Billiton and Rio Tinto has voiced its concerns at Federal Labor leader Mr Kevin Rudd's plan to rip up Australian Workplace Agreements saying that abolishing AWAs could be detrimental to the booming resources industry..
BHP Billiton said that the ALP's industrial relations policy has the potential to damage the continued expansion of the minerals industry. It said that businesses need to be able to put in place industrial instruments that best suit their needs and the company does not believe third party involvement should be mandatory. It also said that if the ALP is committed to abolishing AWAs, it is critical the party comes up with something more flexible that will not stymie the industry.
Mr Leigh Clifford CEO of Rio Tinto said that he has become more concerned as more details are revealed. He said "I might add the details are being peeled back like an onion at the moment and the devil is in the details. We know here that secondary boycotts are okay. Now, that hasn't got much publicity. So whatever is proposed, I think the important thing is it shouldn't threaten the improvements our industry has seen. But I'm concerned that the current ALP proposal, as unveiled over the past few days, will do just that."
Federal Labor Party endorsed the policy at its national weekend conference and it has brought growing criticism from the business sector.
Benxi Iron to commission new CR mill in August
It is reported that Chinese Benxi Iron & Steel is schedule to commence its cold rolling mill with 300,000 tons per year in August 2007.
According to a Benxi Iron & Steel company official the new CR mill is capable to make coils starting with thickness of 0.2 mm for applying in the automotive, electrical appliance making.
Benxi Iron & Steel owns its galvanizing capacity of 1.5 million tons per year which facilities established in 1992.
Tenaga to exit coal mining in Indonesia
It is reported that Tenaga Nasional Bhd is quitting its coal mining venture in Indonesia following an agreement with PT Pamapersada Nusantara to sell its entire 99% in PT Dasa Eka Jasatama for USD 19.5 million (MYR 66.69 million). Under the agreement, PAMA in return will sell 7.5% of TNB Coal and the USD1.27 million (MYR 4.34 million) redeemable unconvertible unsecured loan stocks in TNB Coal to TNB for USD1 (MYR 3.42) after a share transfer from Bonosusatya to PAMA.
On completion of the agreement PAMA will be the sole owner of DEJ while TNB Coal will be a wholly owned subsidiary of TNB both resulting in TNB's complete exit from the coal mining business and operations in Indonesia.
The shares representing 76,951 units of shares are now held by Dynamic Acres Sdn Bhd a wholly owned subsidiary of TNB Coal International Ltd. Currently TNB Coal is a 92.5 % subsidiary of TNB, while the remaining stake in the company is held by the coal mine concession owner Robert Priantono Bonosusatya.
TNB had invested USD 11.9 million (MYR 40.70 million) in 2003 to purchase the stake in DEJ and it made an advance payment of USD 17 million (MYR 62.73 million) to allow the mine to operate. DEJ owns the exclusive mining rights to five concession areas in south Kalimantan, Indonesia, and supplies coal to TNB Fuel Services Sdn Bhd, Tenaga's wholly owned subsidiary since last year. The main reason for its coal mining venture in Indonesia was to have more control over its supply chain and pricing of the commodity.
General Steel & Baotou JV to produce specialty steel pipes
Chinese General Steel Holdings announced that its subsidiary Tianjin Daqiuzhuang Metal Sheet has increased its ownership interest in a JV with Baotou Iron and Steel Group to 80%. The JV will immediately start construction of Phase I of a new specialty steel manufacturing site for producing specialty steel seamed and seamless pipes.
The new JV will build new facilities on land to be contributed by Baotou Steel. Some equipment will also be contributed by Baotou Steel which is to be substantially modified and add a 100 tonnes electric arc furnace and a refiner to create a new production line.
General Steel Holdings said that the JV is contemplated to be implemented in three stages. The total investment in the first stage is contemplated to be USD 5 million with initial production of 100,000 tonnes per year. Two more phases are planned with a final production capacity of 600,000 tonnes per year. The total investment may be up to USD 30 million.
Mr Henry Yu chairman & CEO of General Steel Holdings said that "We are extremely happy to sign this amendment and to be working together with Baotou Steel in this joint venture. This deal has been a long time in coming, but with the hard work, determination and perseverance of everyone involved, we have made it to this point. We look forward to building this joint venture and our working relationship with the Baotou Group."
Mr John Chen CFO of General Steel Holdings said that "Because of the joint venture's location in Inner Mongolia, it is in close proximity to high quality iron ore with rare earth minerals. The quality of steel produced with these natural resources is very high and well suited for pipes used in the energy sector to transport oil and natural gas. China has a growing need for energy and is working hard to expand its energy infrastructure network, so we anticipate strong demand for these pipes."
General Steel Holdings is a manufacturer of high quality hot rolled steel sheets used in the construction of small agricultural and specialty vehicles in China.
Russia to merge oil pipeline firms into a single company
Mosnews.com reported recently that Mr Vladimir Putin president of Russia signed decree to merge crude and oil product pipeline operators Transneft and Transnefteproduct within five months. As per report the merger expected to take place in stages is aimed at forming a single network of oil and oil products via the pipelines and protecting the economic interests of the Russian federation.
The process will start with the total privatization of Transnefteprodukt and an increase in the capital of Transneft which is quoted on the stock exchange and 75% owned by the state and will end with a share swap against new Transneft shares.
Transnefteprodukt which controls around 19,000 kilometers of pipeline in former Soviet countries like Kazakhstan, Ukraine and Belarus is currently 100% owned by the government.and employs 15,700 people and its main customers are Gazprom Neft Yukos and Lukoil.
Transneft owns more than 43,000 kilometers of pipeline and carries 93% of oil and supplies including to Europe.
Samancor Chrome to spend ZAR 1.4 billion on capacity expansion
Mining Weekly Online reported that Ferrochrome producer Samancor Chrome would spend ZAR 1 4 billion on beneficiation projects in South Africa over the next two years which includes a new palletizing plant, a DC furnace and a smelter.
Mr Jurgen Schalamon CEO of Samancor Chrome during an interview said that Our new DC furnace will be coming on stream in the beginning of the Q3 in 2008 between August and September 2008. We also plan to build a pelletiser plant in Middleburg which will be our third. He noted that the new pelletiser plant would be commissioned in some 21 months time at a cost of ZAR 550 million and its price had been driven up by about 40%, mainly because of cost hikes in South Africas booming construction industry.
Mr Schalamon added. We are ramping up our Doornhoek mine where we will build a beneficiation plant for our ore worth around ZAR 240 million with these three projects combined we are looking at an investment of ZAR 1,4 billion over the next 21 months.
Mr Schalamon also said that the company is also undertaking a feasibility study for a chrome chemicals plant which if approved would require a ZAR 800 million investment.
Samancor Chromes current ferrochrome capacity was some 1.2 million tons and the planned expansion would more than double that would take place between 2010 and 2015.
Stelco reports Q1 results
Ontario based Stelco Inc announced an EBITDA of USD 13 million and a loss before income tax of USD 35 million for the first quarter ended March 31st 2007, a substantial improvement over the negative USD 82 million EBITDA and USD 145 million loss before income tax reported in the fourth quarter 2006.
Stelcos first quarter highlights include
1. Lake Erie Steel achieved a record monthly production during the quarter following its successful expansion.
2. Shipments increased to 922,000 tons and semi finished steel production increased to 1,100,000 tons.
3. Net sales revenue for the quarter was USD 609 million as compared to USD 472 million for October to December 2006 quarter.
4. The Corporation's capital structure has been enhanced the Corporation's asset based revolving credit facility was amended on enhanced terms and maturity extended to 2012 and subsequent to the quarter end a commitment letter was entered into to replace the existing revolving term loan credit facility on more favorable terms.
Mr Rodney Mott president and CEO of Stelco said that "With our continued strong production and shipping performance and the apparent strength of the market, we expect improved operating results for the second quarter. High shipping levels are expected throughout the quarter and previously announced price increases will be realized. He added that "Our Lake Erie Steel operation is now positioned as one of the industry's most competitive, and will enable us to expand our market position. We will continue to pursue initiatives to make Hamilton Steel a profitable operation, and a further review of its facilities and cost structure is underway."
Skoda Steel renamed Pilsen Steel
Uralmash Izhora Groups Skoda Steel announced that it has been renamed Pilsen Steel as part of the company's strategy. The new logo of the company was unveiled at OMZ meetings in Prague.
Skoda Steel which is one of the leading producer of forged rolls for wind power stations and the world's 2nd largest supplier of crankshafts for four stroke diesel engines said that its revenues in 2006 reached USD 193.047 million and net profit amounted to USD 33.284 million.
Skoda Steel said that it will continue producing mechanically processed forgings ranging from 1 to 80 metric tons. The company also sells steel and iron castings of up to 200 tons, particularly castings for steam and gas turbines, engine blocks, stands for rolling mills and processing machines, as well as castings for shipbuilding.
OMZ is one of the largest Russian heavy industry enterprises. It specializes in engineering, production, sales and maintenance of equipment and machines for the nuclear power industry and also in the production of special steels.
Al Tuwairqi to build 2 steel units in Egypt & Bahrain
MESteel reported that Al Tuwairqi Group has announced that it is planning to implement two projects to produce steel rebars in Egypt & Al Bahrain, apart from other relevant projects planned in Saudi Arabia.
The report cites a high ranking executive of the Al Tuwairqi Group as saying that each factory would produce annually about 1 million tonnes of steel rebars.
The executive expected no problems in getting the project license from the concerned Egyptian authorities. Earlier, Al Tuwairqi Group failed to acquire Suez Steel Egypt Co, which was offered for sale under the Government Privatization Program.
Sources of the Group revealed plans for other projects in Saudi Arabia and the UAE including 1 million tons per year steel rolling project in Sharjah, also another 0.5 million tons per year a non welded steel pipes project at Dammam.
Sprott Asset Management buys stake in Scandinavian Minerals
Metals Insider has reported that Canadian investment house Sprott Asset Management Inc has disclosed that through its managed funds, it now controls a 10.6% interest in Scandinavian Minerals.
Scandinavian Minerals prime asset is its Kevitsa nickel copper PGE project in Finland which it describes as one of the largest undeveloped nickel sulphide deposits in the world.
PT Timah to increase its 2007 tin sales by 5.6% YoY
Hoover reported that Indonesian tin miner PT Timah expects its 2007 sales to hit 45,000 metric tons or up 5.6% on year from 2006. Due to an increase in demand, Timah plans to raise its tin production to a maximum of 48,000 tonnes in 2007 this year from 44,689 tonnes in 2006.
Mr Wachid Usman president of Timah said "We expect that with the uptrending prices of tin in the world market due to an increase in demand, our sales value this year will also increase. We will maximize our effort to benefit from the higher price of tin in the world market."
He also said that the world tin deficit for 2007 is at 30,700 ton which could further drive up the price of the metal.
In the first three months of 2007 the price of the commodity hit an average of USD 14,124 a tonne compared with USD 8,763 per tonne at the end of 2006.
Platts joins SteelFacts for steel price information
World's leading provider of energy and commodities information Platts announced that its Steel Markets Daily price assessments will now be the basis of monthly steel price summaries in the prominent steel industry analysis platform SteelFacts.
Ms Karen McBeth global director of metals at Platts said "We are pleased that Platts steel prices have been recognized for independence and reliability and will be featured on such a dynamic platform as SteelFacts, which combines the industry critical data of the AISI with that of other key sources and makes it available in a format that better facilitates timely market and industry analyses.
Platts' Steel Markets Daily provides readers worldwide with price benchmarks of hot rolled coil and rebars. Platts began publishing daily price assessments in steel on January 29th 2007 to meet industry demand for more reliable and transparent price information.
Metals USA reports Q1 results
Metals USA Holdings Corps wholly owned subsidiary Metals USA Inc., announced its operating results for the January to March 2007 quarter.. Its sales revenues of USD 462.6 million exceeded sales of USD 429.6 million in Q1 of 2006 by USD 33 million although sales volumes in metal service center business decreased by 2% YoY.
Adjusted EBITDA was USD 34.7 million for the first quarter or USD 3.4 million higher than first quarter 2006. It recognized USD 5.5 million in depreciation and amortization expenses during the quarter. Interest expense for the first quarter 2007 was USD 14.7 million. Operating income was USD 25.5 million, including a one time stock option expense of USD 3.0 million. First quarter 2007 operating income was USD 10 million better than first quarter last year.
Mr Lourenco Goncalves chairman, president & CEO of Metals USA said that "Our business continued to be strong during the first quarter. Material availability in the market tightened noticeably and prices rose accordingly, benefiting the service center companies which are able to efficiently manage inventories, such as Metals USA. The first quarter was a good one for Metals USA, and the second quarter should be even better. The service center business continues to demonstrate superior returns. Our industry has undergone a transformational shift to sustainable and attractive financial performance."
Metals USA provides a wide range of products and services in the heavy carbon steel, flat rolled steel, non ferrous metals, and building products markets.
Zapsib to start capital repair of BF No 1 in June 2007
It is reported that Russian steel mill Zapidniy Sibirsky Met Kombinat plans to stop its BF No 1 for 1st category major repair in the first half of June 2007 that will last for 5 months.
As per report the furnace capacity is 2.34 million tonne of pig iron per year. As a result of the overhaul, the furnace will be virtually constructed anew where the volume of 3000 cubic meter and the capacity will not change.
MBMIs Philippine JV gets permits for Alpha nickel property at Narra
MBMI Resource Inc announced that its Philippine subsidiary has been granted all requisite mining, and environmental permits to commence development and mining on the Alpha nickel property at Narra in Palawan region of Philippines.
MBMI said that Granting of these permits marks a milestone in an extensive process and enables the it's subsidiary to commence the extraction, beneficiation, and stockpiling of raw nickel products in preparation for shipment to Asian nickel purchasers. Construction of the road accessing the permitted mining areas has begun. Substantial progress has been made toward completing all infrastructure required to develop this project, including processing, stockpiling area, the office complex, assay laboratory facilities and shipping facilities. Subject to weather conditions, shipments of product to Asian consumers should commence prior to the end of the Q2 of 2007.
MBMI and its Philippine partners jointly control a 100% interest in eight nickel laterite projects in Palawan and Samar regions of Philippines covering an area of 22,000 hectares where the objective is to develop a series of major suppliers of high-grade nickel products to the primary nickel consumers in Asia.
Magang to overhaul 3 production lines in May 2007
China's Magang Group has announced to overhaul three production lines for routine maintenance in May.
Magang Group said the first maintenance for a wire production line will shut down from May 10th with a duration of 5 days, it will result a 10,000 tons reduction of high speed wire products output.
A rebar production line will also shut down from May 17th, it will take about 9 days and will cause a 30,000 tons reduction of rebars.
Moreover, the other maintenance for steel section production line will start from May 10th with a period of 9 days and will cause a 15,000 tons reduction.
Coal mine cave in kills 5 in Guizhou Province
Xhinua reported that the death toll of a coal mine cave in southwest China's Guizhou Province rose to five after rescuers retrieved three more bodies on Tuesday.
The accident took place at 8:40 PM on Sunday, when 6 miners were working in the shaft of the Kexing Coal Mine in Sayu Township of Anlong County. A miner was injured in the accident and is being treated at a local hospital.
The cause of the accident is being investigated.
The Kexing Coal Mine is a township owned mine with all legal licenses. Built in 1996, it has an annual production capacity of 30,000 tonnes.
Metso to supply metal recycling plant to GDE in France
Recycling.net reported that Metso Minerals has bagged an order worth EUR 8 million to supply a metal recycling plant to GDE Group for its Limay metal recycling site in France by the Q3 of 2008.
The order comprises a complete metal recycling plant equipped with a 6,000 HP shredder. The equipment includes erection and commissioning services.
Metso said that when the installation is complete it will be their largest scrap metal recycling facility in continental Europe that will be able to process around 300,000 metric tons of ferrous metal and 30,000 metric tons of non ferrous metal.
The GDE Group has more than 30 operating sites.
Solid Energy invokes force majeure due to protest at Stockton mine
Lyttelton Port Company announced that its Solid Energy has invoked a special "force majeure" provision in its contract with the port to ship coal from the Stockton mine near Westport due to continued protest action against the coal company at its Stockton mine.
Lyttelton said that Solid Energy has cited orchestrated protest action by the Save Happy Valley Coalition as the reason for invoking the clause. It added that production at Solid Energy's Stockton mine has been constrained by the occupation of protesters and held up a coal train when they chained themselves to the railway tracks.
Solid Energy said that a concerted protest action from the Save Happy Valley Coalition has been beyond its control.
Force majeure is a clause which can free a party from liability if an extraordinary event prevents it from fulfilling its contractual obligations.
Krasnoyarsk Metallurgical Plant to go on block on May 22nd
Daily news reported that bidding on the sale of the assets of Krasnoyarsk Metallurgical Plant will be held on May 22nd 2007 in Moscow.
As per report one of the reasons for Krasnoyarsk Metallurgical plant's assets is the loan taken back in 1995 from a US bank on the purchase of equipment under the guaranty of the Russian Government.
Quebec Cartier Mining appoints Mr Pelletier as CEO
Quebec Cartier Mining Company announced that Mr Francois Pelletier will succeed Mr Jacques Chabanier as president and CEO effective from May 1st 2007. Mr Pelletier is currently COO, a position he has held since December of 2006, responsible for operations sales and marketing, technology and human resources.
Mr Pelletier joined Quebec Cartier in 1976. He is also the President of Canadian Institute of Mining, Metallurgy and Petroleum and a Director of the Mining Association of Canada.
Mr Chabanier commented "Mr Francois Pelletier has demonstrated strong leadership in several senior positions within Quebec Cartier, during his long career with the company. He will make an outstanding president and CEO with a deep knowledge of the company its customers and the iron ore industry".
Quebec Cartier Mining Company is one of Canada's leading suppliers of iron ore to steel markets around the world. As both a mining and primary processing company, it operates extensive facilities on the north shore of the Gulf of St Lawrence at Mont Wright. Quebec Cartier operates one of the largest open pit mines in North America as well as an iron ore concentration plant.
Demolition begins at former Bethlehem Steel site
It is reported that crews have begun demolishing former Bethlehem Steel buildings to make way for a USD 600 million casino, hotel and events center. As per report massive excavating equipment began pulling down tons of bricks and steel though most of the major demolition will start in June after work crews reroute utilities and relocate museum pieces in the buildings.
Mr Howard Gillette and Mr Sharon Ann Holt two Rutgers University educators, plan a conference next month where industrial historians will discuss what Bethlehem Steel meant and how its memory should be preserved. They have gathered 30 groups, including the National Museum of Industrial History, the National Canal Museum, Historic Bethlehem and ArtsQuest, to form the Lehigh Valley Industrial Heritage Coalition. Mr Gillette said that "The buildings that are saved give a sense of the magnitude of that site, and our mission is to interpret the story behind them."
