POSCOs Jatadhari Port proposal gets environmental clearance

It is reported that Indias union ministry of environment & forest, after 18 months period, has cleared POSCO Indias proposal for building a captive port after completing environment impact assessment and ensuring that the project conforms to coastal zone regulations. Work on the project is expected to begin after a similar clearance is received for POSCO's proposed steel plant.

POSCO plans to invest about USD 900 million in developing the captive port facility at Jatadhari 12 kilometers from the existing port at Paradip.

The project is expected to be developed in two phases. In the first phase it will have a capacity of 10 million tonne per annum and will be expanded up to 31 million tonnes per annum, consisting of 15 million tonnes per annum of raw material imports and 16 million tonnes per annum of steel exports. For import of raw materials a total of 5 berths spanning 1,590 meters and for export of products 8 berths spanning 1,770 meters will be built.

POSCOs port proposal is opposed by environmentalists who said it would adversely affect the nesting beaches for Olive Ridley sea turtles. Mr TR Baalu union shipping minister also earlier expressed apprehension that the POSCO port was likely to affect the operations of Paradip Port.

Usha Martin's iron ore and coal mines to meet its captive needs

BL reported that Usha Martin Ltd has integrated iron ore production from its new mines located in West Singbhum district in Jharkhand to fully meet its captive requirements in this financial year. Mr Prashant Jhawar vice chairman of Usha Martin Ltd told Business Line that from this fiscal captive mines would meet its special steel plant's full requirement against 57% in the last financial year. Usha Martins iron ore mines are reported to have an estimated reserve close to 100 million tonnes with Fe content of 62% to 63%.

Mr Jhawar also said that the new licensed coal mines will also become fully functional by December 2007. The company has been allotted coal blocks by the Jharkhand in the Daltongunj area which has an estimated reserve of 30 million tonnes to 40 million tonnes of high grade coal. The current coal consumption of the company is around half a million tonnes a year increasing to 2 million tonnes in 2 years after the capacity expansion is through.

9 coal blocks allotted to power sector

Dr Dasari Narayana Rao minister of state for coal informed the Lok Sabha that 57 coal blocks have been allocated for power sector of which 9 coal blocks have been allocated for existing power plants and the remaining for expansion and new power plants to public and private sector companies.

Following is the details of blocks allotted in each state for existing power plants

(In million tonnes)

Dr Rao also told that the government of India has invited applications for allocation of ten coal blocks for power sector under government company dispensation route and in response, a total of 183 applications have been received from central & state PSUs. These applications are at advanced stage of consideration.

Padmavati Ferrous to setup sponge and ferroalloy plant in Karnataka

It is reported that Karnataka based Padmavati Ferrous Ltd has chalked out a INR 1.2 billion CAPEX plan which will be implemented in two phases at Chikkanatpura in Bellary district of Karnataka.

In the first phase the company will set up 132,000 tonnes per annum sponge iron unit. In the second phase the company will set up 37,100 tonne per annum ferroalloy unit. A 12 MW waste heat based recovery plant will also be set up. The company hopes to complete both the phases within two years.

The company is planning to finance the project through 70:30 debt equity ratio. The company has appointed Bilaspur based Engineering and Industrial Consultancy Services as consultant for the project.

Kerala inks MoU with Rosboron & Avisma for titanium unit

It is reported that Kerala Government has signed an MoU with a titanium technology expert Rosoboron and another Russian firm Avisma for setting up a 10,000 tonnes per annum titanium sponge manufacturing project at Chertala. The MoU is for technology association in manufacturing titanium metal, titanium sponge and titanium alloy.

The project will entail an investment of INR 1,500 crore.

The facility coming up at Chertala on land, is owned by Kerala State Industrial Development Corporation. Kerala Minerals & Metals will supply titanium tetrachloride required for being processed at the plant.

Hindustan Shipyard launches MV Good Princess

It is reported that INR 110 crore worth 30,000 DWT bulk carriers Good Princess, built in the Hindustan Shipyard for the Chennai based Good Earth Maritime Ltd was launched in Visakhapatnam recently.

Mr Ajit Tewari chairman and MD of Hindustan Shipyard Ltd said that the keel for the ship was laid on January 18th 2006 and it was the biggest ship launched from the slipway of the HSL. He said that "It is a momentous occasion and it augurs well for the HSL. In spite of the tribulations in the recent past, there are good things to come for the shipyard. It is quite an achievement and I hope all the three slipways in the HSL will be operational. I congratulate the workers and the officers who have made it possible."

Mr Tewari said that the fortunes of the shipyard were on the rise again and it was all set to make marginal profits. The order book position was healthy with orders worth more than INR 2,000 crore on hand. He said the HSL was building 3 more such 30,000 DWT bulk vessels for the Good Earth Maritime Ltd.

It may be noted that the HSL is awaiting a revival package and capital restructuring for more than a decade.

Indian railway to start study for high speed freight corridors

Indian Railways, which has planned to develop 4 high speed freight corridors to carry commodities such as steel, iron ore, coal and petroleum products on public private partnership model, is expected to commission a study for the product specific corridors to be completed in 2 and half years. The consultant will also work out the cost of construction and a funding model.

While tentative routes have been worked out for the new freight corridors, specific tracks will be finalized after discussions with steel, mining and coal companies. The 4 routes which have been identified include Delhi to Chennai, Goa to Chennai and Kolkata to Gopalpur in Orissa Paradip.

The proposed corridors will support branch lines being developed under the PPP model by Rail Vikas Nigam in collaboration with steel and coal companies. The new corridors will run high axle loads of up to 30 tonne as material loads will be heavy and similar loads are proposed for the freight corridors that have been approved by the cabinet. The high speed corridors are expected to cost about INR 40 crore per kilometer. Each of the corridors is expected to cost about INR 25,000 crore excluding the cost of land.

Punjab plans 3 thermal power plants

It is reported that Punjab government is planning to set up 3 thermal power plants capable of generating 3,000MW to 4,000 MW at Goindwal Sahib in Sangrur and Mansa to overcome power crises and is expected to be commissioned within 3 to 4 years.

Suzlon issues FCCB worth USD 300 million

BS reported that Indias largest wind turbine generator Suzlon Energy has issued zero coupon foreign currency convertible bonds worth USD 300 million (INR 1,218 crore) to part finance its organic growth initiatives. The foreign currency convertible bonds are expected to be listed on the Singapore Exchange Securities Trading.

As per report, the foreign currency convertible bonds would have a maturity period of 5 years and a day after which shareholders would be allowed to convert them into shares of the company at INR 1,800 which is almost 59% above its closing price of INR 1,134.75 on May 16th 2007 on the Bombay Stock Exchange.

The report cites a Suzlon Energy official as saying that FCCBs were the best option as it required minimum dilution and it was most earnings per share accretive. The balance funds would come from IPO proceeds and term loans tied up earlier.

Suzlon Energy is expanding its manufacturing capacity to 4,200 MW from 2,700 MW currently. The funds raised by the company would meet about a third of the overall INR 3,300 crore required for the capacity expansion over the next 2 years.

OM Metals secure 2 order from NHPC

It is reported that OM Metals Infraprojects has secured 2 orders worth INR 158 crore from National Hydroelectric Power Corporation for executing hydro mechanical works for the following 2 projects.

1.4x40 Teesta Low Dam Hydroelectric project (Stage-IV) in Darjeeling district of West Bengal worth INR 99 crore.

2. 4x60 MW Uri-II Hydroelectric project in Baramula district of Jammu & Kashmir worth INR 59 crore.

The contract work is to be completed within a period of 3 years.

CVRD unlikely to attempt Rio Tinto takeover in short term Analysts

BNamericas citing an analyst reported that CVRD is unlikely to launch an offer to acquire Anglo Australian miner Rio Tinto in the short term.

Mr Pedro Galdi an investment analyst with ABN Amro Corretora told BNamericas that "There are a lot of speculations, I believe CVRD will continue its expansion process through acquisitions, but their purchases are very down to earth. They would not buy just for the sake of buying."

Rumors have surfaced of possible CVRD plans to acquire Rio Tinto, days after the buzz died down about a possible bid from BHP Billiton for Rio Tinto.

Shougang to reduce to 4 million tonnes during 2008 Olympics

Beijing Shougang steel company, one of Beijings worst polluters, will close a key production plant early next year in time for the Olympics. Shougang, earlier know as Capital Steel, was built in 1919 just 17 kilometers west of Tian'anmen Square and has been accused to be a major polluter to China's capital city.

It started to relocate production in 2005 to Caofeidian, a site in Hebei. Construction of the company's new steel plant began in Caofeidian in March. It will move all its Beijing based production facilities to Caofeidian by 2010. It had already started to reduce production in Beijing, closing a 2 million ton production facility and a furnace with a capacity of 700,000 tons. Its No 3 Steel Plant, which came on stream in 1992 and has an annual production capacity of three million tons, will be the first group plant to completely halt production.

The new plant, a joint venture of Shougang and Tangshan Steel and Iron Group, will adopt environment friendly technologies to minimize toxic emissions and waste discharge. It is destined to become the country's largest steel production base.

According to a plan approved by the State Council, China's cabinet, it will maintain production capacity of 4 million tons during the 2008 Beijing Olympics, but its operations will have to conform to strict government guidelines. The Chinese government promised to make Beijing an ecological city with green hills, clear water, grass and blue skies after it won the 2008 Olympics bid.

POSCO's starts construction of ferronickel plant in South Korea

Platts reported that POSCO has launched construction of the country's first ferronickel plant at Gwangyang in South Korea. The construction is expected to be completed in March 2008

The plant will have a capacity to produce 30,000 n tonnes per year of ferronickel. The nickel feedstock will be supplied by Societe Miniere du Sud Pacific based in New Caledonia.

Mittal Steel SAs Q1 headline earnings up by 19%

Arcelor Mittals South African unit Mittal Steel SA announced a 19% YoY increase in headline earnings in the Q1 of 2007 to ZAR 1.5 billion rand (USD 216 million). Its revenue also increased to ZAR 7.24 billion despite a fall in output following a reline of its main plant.

Mittal Steel SA in a statement said that its headline earnings increased due to higher domestic demand, increased international sales prices, an improved sales mix and a weaker rand to dollar exchange rate partially offset by increase in raw material costs and lower export volumes.

Liquid steel production for January to March 2007 quarter dipped 10% as compared to October to December 2006 quarter and by 5% as compared to January to March 2006 due to the reline of Blast Furnace D at its main Vanderbijlpark plant. The reline started in mid February this year.

Egypt may reduce export tariffs on steel

Reuters reported that Egypt might cut export tariffs on steel and cement towards the end of the year on expectations of a decline in world prices.

Mr Rachid Mohammad Rachid trade minister of Egypt told Reuters on the sidelines of the World Economic Forum conference near the Dead Sea in Jordan that "We expect by the end of this year there will be some stabilization and decline in the world prices which will allow us to reduce export tariffs.

Egyptian government imposed duty on exports of cement and steel products in late February in response to rising domestic prices and to prevent foreign buyers benefiting from Egyptian subsidies. It took the first step in stabilizing the market by issuing decree No 142 which imposed additional export duties of EGP 65 per tonne on cement and EGP 160 per tonne on steel and subsequently announced a new decree No 216 increasing steel export duties to EGP 180 per tonne from EGP 160 on four out of nine categories of iron and steel.

ChTPZs pipe sales up by 34% YoY in January to April

Interfax reported that Russian pipe major ChTPZ Group has boosted pipe sales 34% YoY in January to April 2007 to 643,500 tonnes. In April, the group increased overall pipe sales 97,400 tonnes, from 82,700 tonnes a year previously. Large diameter pipe sales grew by 21% YoY to 56,100 tonnes in April 2007.

Its Chelyabinsk Pipe Rolling Plant increased sales by 31% YoY to 352,000 tonnes of pipes in the four months, including 201,200 tonnes of large diameter pipes, up by 33% YoY.

Its Pervouralsk Novotrubny Pipe Works from the Sverdlovsk region raised pipe sales 37% YoY in the four months to 290,800 tonnes, including 76,300 tonnes in April up by 41% YoY.

CSP to decide on melt shop in June

BNamericas reported that a study to decide whether a mill to produce liquid steel will be part of the 400,000 tonnes per year CSP long steel project to be located in Brazil's Goi state is due to wrap up by mid June. Mr Gustavo Bcheche project coordinator told BNamericas that "We are studying to see if steel output will be part of the investment and its possible location.

The rolling mill already underway, which will operate in the Nova Glia city plant, would require investments of BRR 150 million to BRR 200 million and if it occurs total disbursements would increase to some BRR 350 million.

Steel production from the mill would feed the rolling facility in order to manufacture long rolled products. If the mill is not included in the project, the rolling area would buy billets from another state to produce the products.

CSP is expected to start operations in the first half of 2009 and is a 40:40:20 JV between Brazilian groups Ferroeste, Sidepar and Toctao. Its output is tagged for sales to the domestic market.

ThyssenKrupp Fordertechnik to build new terminal at Yuzhnyy

At the Port of Yuzhnyy, one of the largest seaports on the Black Sea, a modern coal and ore handling terminal has been built, reaching a capacity of up to 10 million tons per year. The terminal owner is the company TIS TransinvestService of Odessa in the Ukraine and ThyssenKrupp Fordertechnik of St Ingbert will supply the essential materials handling equipment for the commodities under a contract worth EUR 10 million signed earlier this year.

Coal and ore are delivered to the terminal in open wagons. At a separate unloading station, the wagons will be lifted from the rail track and simultaneously emptied into a bunker by means of a side discharge dumper which turns the wagons upside down to release the material.

The wagon unloading station has a capacity of 1,600 tonnes per hour. From there, the material will be conveyed to an open stockyard where it will be stockpiled by a stacker. In order to load it into ships, the material will be reclaimed from the stockpile by a reclaimer and transported to the respective loading pier in the port via a conveyor system, where a TKF shiploader with a capacity of 3,500 tonnes per hour will feed the material into ships ranging in size up to 120,000 DWT.

ThyssenKrupp Fordertechnik design, supply and assemble individual machines and systems as well as complete port related projects.

Global Coal to take 5% stake in China Coal & Energy Corp

Global Coal Management PLC announced that it has agreed to invest USD 5 million for a 5% stake in China Coal & Energy Corp.

Global Coal said that CCEC has entered into several heads of agreements in which it may acquire various thermal coal projects primarily in Shanxi and Inner Mongolia. It added that with the exception of the integrated coal mining and coke processing facilities the remaining coal properties are at pre feasibility and exploration stage but appear to be substantial coal resources, which could be suited to large scale mining.

Global Coal also reiterated that it is committed to implementing the Phulbari Coal Project Scheme of Development with Bangladesh's government.

Mittal Steel SAs new pricing system costs USD 78.8 million Report

Platts citing Mr Rick Reato CEO of Mittal Steel SA, reported that Mittal Steel SA's lost ZAR 550 million (USD 78.8 million) revenue in 2006, after it changed it replaced steel pricing policy based on import parity.

The new system, which Mittal Steel SA calls International Domestic Pricing, calculates a price from a basket of steel prices in China, Russia and the United States. Old Import Parity Pricing system used the Black Sea prices, sea freight, import duties, commissioning & finance, harbor & stevedore costs plus inland logistical costs.

The report cites a senior official as saying that as per a calculation made by company accountants a tonne of hot rolled coil in the fourth quarter of 2006 cost USD 628 per million tonnes under the Import Parity Pricing system but only USD 578 per million tonnes under the new system.

Mittal Steel SA is locked in talks with the South African government which is determined to bring down steel prices, and it recently fell foul of the country's Competition Tribunal, which ruled that the steelmaker was guilty of excessive pricing. The Competition Tribunal ruled against Mittal earlier this year. The complaint was brought by DRD Gold and Harmony who said they were paying considerably more for their steel than their competitors in Australia and the United States. The South African government intends to secure a supply of cheap steel for its massive infrastructure plans, which was the understanding when Mittal Steel took over Iscor.

SUEK's 2006 net profit increase 4.3 time

It is reported that the net profit of the Russian coal and energy company SUEK, under Russian Accounting Standards, grew 4.3 times to RUB 31.65 billion (USD 1.23 billion) in 2006 as compared to 2005. Its 2006 revenue surged by 43.9% YoY to RUB 63.985 billion (USD2.48 billion).

However, the net profit dropped by 12.54% YoY to RUB 11.2 billion (USD 434 million) in the first quarter of 2007 although its revenue rose by 21% YoY to RUB 19.213 billion (USD745 million).

Mechel plans major investment in Yuzhural nickel

Metals Insider reported that Russias Mechel steel group is planning a major upgrade of its ferronickel subsidiary, Yuzhuralnikel to lift the smelters production capacity it produced 14,400 tonnes in 2006 to around 20,000 tonnes per year.

Mr Alexei Ivanushkin CEO of Mechel steel group said that the cost estimates and a firm time line for the upgrade are dependent on the current tendering process for two electric furnaces.

Pakistans steel sector may lose concessions

The International News reported that Pakistan Central Broad of Revenue is examining the possibility of withdrawing the concessions to the steel sector by shifting to new benchmark instead of electricity consumption in the forthcoming budget.

The report cites an official of CBR as saying that Pakistan steel industry is not paying taxes as per its potentials although it was granted many concessions in budget. The Board was examining the possibility of withdrawing some concessions and shifting to new benchmark instead of electricity consumption in the forthcoming budget.

On the other hand, Pakistans steel industry has unanimously pleaded for continuation of present benchmark of electricity consumption and called for improvement in recovery and monitoring systems. The industry assured full cooperation to CBR for enlarging the tax net as the tax evaders were selling their products at cheaper rates making taxpayers vulnerable to unhealthy competition.

3 killed in coal mine blast in Liaoning Province

Xinhua reported that 3 miners have been killed and another 3 injured in a coal mine explosion in northeast China's Liaoning Province. The accident occurred Thursday morning at a coalmine in Huazi Town Liaoyang City when 40 miners were working in the mine.37, including three miners burnt in the blast, managed to escape.

Rescuers found the bodies of the three trapped miners Friday afternoon.

The cause of the blast is being investigated.

ThyssenKrupp to develop lower nickel SS products

It is reported that ThyssenKrupp Acciai Speciali Terni in Italy is planning to set up a VOD converter to expand its ferritic steel products to replace chromium nickel items due to high nickel price.

This new project will be started from the end of March in 2008 and can help this company to resist the nickel price impact which is forcing many buyers shift from stainless steel 200 and 300 series products.

ThyssenKrupp Acciai Speciali Terni is also developing lower or non nickel contained products in some applications and under testing to meet some customers request.

Centrasia buys nickel properties in Russia

Canadian Centrasia Mining Corp announced that it has signed an agreement to acquire a 100% interest in three nickel copper sulphide properties in Russia for initial payments of USD 6 million and 12.5 million Centrasia shares, second payment of USD 5milliom in 2008 and third payment of USD 1.5 million in 2009.

Centrasia said that one of the projects is in advanced stage. Centrasia said that Soviet era research, not JORC compliant, on the advanced project on the Kola Peninsula suggests it could contain over 1 billion pounds of nickel. The two other deposits are also on the Kola Peninsula the location of some of the operations of Norilsk Nickel and Centrasia said it views these projects as promising, early stage Nickel Copper exploration targets.

Mr Douglas Turnbull President & CEO of Centrasia said that We will be undertaking an aggressive work program at the deposit over the next two years in order to push it through to feasibility as quickly as possible. We are very bullish on nickel and we are convinced that expediting the development of the deposit is the best way to capitalize on what we believe will be very favorable nickel prices for the next decade.

MMK Metiz to reinvest 2006 profit

Interfax reported that shareholders in MMK Metiz, at their annual meeting on May 17th 2007, voted to waive dividends for 2007 and to reinvest 2006 net profit, which was RUB 231.644 million in a development program to 2015. MMK Metiz also reinvested its 2005 profit.

MMK Metiz said in a press release that it aimed to boost hardware output 15.7% in 2007 to 706,000 tonnes from 610,000 tonnes in 2006.

MMK Metiz is Russia's second largest metalware producer, with a 25% share of the domestic market.

United Stainless to increase capacity

ME Steel reported that United Stainless Steel Company is planning to carry out expansion of an under construction stainless steel plant at Hidd in Bahrain to reach a capacity of 200,000 tonnes per year.

United Stainless Steel Company said that the scheme is being implemented to increase the production capacity by 110,000 tonnes per year to the under construction scheme with capacity of 90,000 tonnes per year.

Local Arab Banking Corporation is the financial consultant.

Baffinland gets approval for Mary River iron ore property

Baffinland Iron Mines Corp received approval from the Nunavut Impact Review Board on May 7th 2007 to extract and ship 250,000 tonnes of iron ore next summer from its Mary River property in North Baffin. Mr Gordon McCreary President of Baffinland Iron Mines Corp described the approval of the bulk sample as a major milestone.

The Mary River deposit, found south of Pond Inlet, is believed to hold tens of millions of tonnes of high grade iron ore enough to sustain an open pit mine for at least 34 years. According to a company press release, test results released in April from drilling conducted the previous summer at Mary River confirm the presence of consistent high grade iron at the site and more exploratory drilling is planned this summer.

Baffinland plans to move heavy equipment into place at Mary River, to prepare for the bulk sample shipment of ore to steel mills in Europe and the United States the following summer and hopes to begin operations by 2011, at a capital cost of USD 1.5 billion. The bulk ore sample is to be extracted from two small open-pit mines and transported by road about 100 kilometers to Milne Inlet, where it will be loaded on ships for transport.

Baffinland's startup plans include building a short railway linking the open mine to a deep sea port and hopes to negotiate an unit impact and benefits agreement by the end of 2007.