May, 24 2007
SAIL board approves RSP modernization package
It is reported that Steel Authority of India Limiteds board has accorded in principle approval to INR 9869 crore modernization and capacity expansion plan of its Rourkela Steel Plant.
The proposal envisages an increase of its hot metal production capacity of RSP from 2 million tonnes to 4.5 million tonnes. The expansion will raise the total crude steel capacity of the Rourkela plant to 4.2 million tonnes. The project is expected to be completed by 2010
The proposed modernization program includes
1. Setting up of a blast furnace with working volume of 4060 cubic meters and productivity of 2.3 tonne a meter cube daily
2. Reconstruction of its existing BF No 1 to upgrade it to 1250 meter cube with high top pressure and coal dust injection facilities
3. Modernization of BF No 4 with coal dust injection system.
4. A new 7 meter coke oven battery
5. A new sinter plant with 3.69 million tonne capacity
6. A new 150 tonne converter
7. Two new ladle heating furnaces
8. A new caster
9. One of the existing casters will also be upgraded
10. A new plate mill with 1.8 million tonne capacity that will roll out up to 4,200 mm wide plates
A technology up gradation exercise will be undertaken to increase the production of crude steel and value added steel, improve product quality and reduce energy consumption.
TATA Steel targets Jharkhand steel plant by 2011
The Telegraph reported that TATA Steel is on track to commence operations at its Greenfield plant in Jharkhand by 2011 although Jharkhand government is yet to come out with a rehabilitation policy for the displaced. Mr Partha Sengupta principal executive officer of the Jharkhand project said that if the company gets the land by 2009, then the Greenfield plant will go on stream by 2011.
Mr B Muthuraman MD of TATA Steel said that We have taken good care of the people for the last 100 years and will continue to do so wherever we put up a new project.
TATA Steel had earlier announced that it wanted to rehabilitate the displaced. TATA Steels rehabilitation plan will take care of the people who will be marginally and indirectly affected by the project. The displaced will be registered and provided with an identity card. Independent social audits will maintain transparency of the policy and monitor the well being of the people. The TATA Parivar project will also be implemented at Kalinga Nagar. The objective is participation of the displaced in all phases of the project, right from construction to operations.
However, the plans can be implemented only if the Jharkhand government puts in place the rehabilitation policy. This is because the policy will provide the norms for the TATAs welfare schemes.
TATA Steel has signed the MoU with Jharkhand for setting up a 12 million tonnes Greenfield project which is likely to be in Tontoposhi in Jharkhand. TATA Steel has also identified 10,000 acres for the project but is unwilling to proceed with the acquisition in the absence of the rehabilitation policy.
Mukand to increase capacity to 0.5 million tonnes in 2 years
PTI reported that Indian specialty steels major Mukand Ltd has lined up INR 450 crore expansion plans for its steel and industrial machinery businesses over the next two to three years. Mr Rajesh Shah vice chairman of Mukund told PTI "We plan to invest INR 300 crore in our steel business to enhance the capacity while another INR 100 crore to INR 150 crore has been earmarked for industrial machinery business.
Mr Shah said that ''This is a two year expansion program. We will first increase our capacity to 0.35 million tonnes and then to 0.5 million tonnes by two years. We will be a good sized specialty steel company by then.'' Mr Shah added that ''There's big business in specialty alloy steels and our value added products are increasingly being sourced by global majors,''
Mukund's main steel making unit is located at Bellary in Karnataka and has a capacity of 0.31 million tonnes per annum.
Acerinox & Nisshin plan SS plant in India
It is reported that worlds second biggest stainless steel maker Acerinox SA in association with Japanese SS major Nisshin Steel Co is studying building a SS plant in India to tap rising demand from makers of automobiles and houses.
Dr Victoriano Munoz Cava chairman& CEO of Acerinox in an interview at Kyoto in Japan revelaed that its is considering stainless steel demand and energy issues as part of the study into establishing a joint venture in India. He said We have not decided the location because not only consumption, but securing power supplies matters.
Acerinox plans to overtake worlds no 1 stainless makers ThyssenKrupp after its capacity expansion to 3.5 million tonnes is completed by end of 2008. Acerinox has started study for new production site in Asia other than current sites in Europe, North America and South Africa.
Dubai Investments & SKS Ispat signs MOU for PEB JV in India
UAE largest investment company Dubai Investments PJSC through its division of Dubai Investments Industries LLC has signed a MoU with SKS Ispat & Power Limited for a 50:50 JV and a strategic business alliance for setting up of steel fabrication facilities for designing, producing, marketing and erecting the Pre Engineered Building and Hot Rolled Structures in India.
The first facility will be set up at Lonand in Maharashtra India where 66 Acres of land has already been purchased for the same. It will be operational in early 2008 and will have a production capacity of 50,000 tonnes per annum, which will be subsequently increased to 250,000 tonnes in 3 years time making them the market leaders in this industry. Initial Project cost is estimated at USD 25 million.
Dubai Investments Industriess subsidiary Emirates Building Systems Company LLC will provide all technology and technical assistance for the setting up and operations of the JV and for all its future expansions. First Plant building will also be provided and supplied by Emirates Building Systems itself.
Mr Anshul Singhal MD designate for the new JV said that They together are confident that the same will become what they call is a revolution in the Indian PEB and HR fabrication Industry. The facility will be a world class and with an aim to achieve a maximum production so as to honor the timely commitments of their customers. Not only will they be able to achieve more sales thru their current customer base but will also provide safer building solutions with the expertise given by Emirates Building Systems.
POSCO may get iron ore mining permit by August Report
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
Welspun considering stake in Brazilian iron ore mine TMC Report
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
Gujarat NRE's Australian Flagship India NRE Minerals Ltd IPO opens
Gujarat NRE Coke Ltd has announced that its Australian subsidiary India NRE Minerals Ltd has lodged an IPO Prospectus to raise AUD 15 million, with a right to accept oversubscriptions of a further AUD 10 million, and seek listing on the Australian Securities Exchange.
The IPO consists of an offer for 30 million shares at an issue price of 50 cents each with a right to accept oversubscriptions of further 20 million shares. On listing the company would have a market capitalization, based on the issue price, at AUD 240 million to AUD 250 million. India NRE Minerals Ltd would hold more than 90% stake following the IPO.
India NRE Minerals Ltd, owners of the NRE No 1 colliery in NSW of Australia owns one of the oldest operating coal mine containing a JORC resource of more than 300 million tonnes of prime hard coking coal. India NRE is in the process of extending the mine life by developing new access roads and drifts into the unmined areas of the mine and subject to the successful completion of a bankable feasibility study and implementation of a long wall intends to increase production from the current level of 1 million tonne to a long term production target of 4 million tonnes per annum in about 4 years time.
POSCO may get iron ore mining permit by August - Report
Bloomberg reported that POSCO India is hoping to get iron ore mining license by August 2007 to feed its proposed USD 12 billion plant in Orissa.
The report cites Mr JP Singh secretary at the ministry of mine as saying that We had asked the Orissa state for some clarifications and we hope the license will be granted in three months. The process is on.
Mr Singh said that India may grant companies exclusive captive mining rights after a government review panel submits its suggestions to revamp the Indias 50 year old mining law. He told that the panel is scheduled to meet May 28th 2007 adding that On that day, we will have a clearer idea as to when the mining policy will be announced.
Orissa government has recommended grant of mining license for Khandadhar iron ore mines in the State's Keonjhar district in to POSCO India overriding previously filed applications by as many as 130 companies. Incidentally Kudremukh Iron Ore Company had filed a petition in the Orissa High Court against the state government's recommendation for a mining license to POSCO for the Khandadhar iron ore mines the license was previously allotted to the KIOC. The high court quashed the petition and asked the central government to take an appropriate decision within 3 months.
Welspun considering stake in Brazilian iron ore mine TMC - Report
Times News Network reported that Indian pipe major Welspun Group is considering acquiring a 17% stake in Companhia De Mineracao Tototocantins FA for USD 500 to USD 550 million to ensure a steady supply of ore to its sponge iron plant in Gujarat.
Welspuns closely held company Welspun Power & Steel has a 0.2 million tonne sponge iron facility at Anjar in Kutch district of Gujarat and is reported to have been buying iron ore from open market to feed the unit.
The report however mentions that Welspun group officials declined to comment on the issue.
Water problem highlighted for steel plant at Kadapa in AP
It is reported that Mr SV Seshagiri Rao, a senior BJP leader, suggested setting up of the proposed steel factory in a place endowed with water resources, rather than in Kadapa, in view of the likelihood of severe water scarcity in Rayalaseema.
Mr Rao said that the water problem would be so acute after 10 years that every drop would have to be utilized either for drinking or irrigation. It would be unwise for the Government to encourage setting up of steel or paper factories in Rayalaseema in such a situation.
Mr added that if t2 thousand million cubic feet would be utilized from the Gandikota reservoir for the proposed steel plant at Kadpa, more than 20,000 acres of in Chittoor district under the Galeru Nagari Srujala Sravanti Project would be affected.
Andhra Pradesh government has signed a MoU with Bramhani Industries Limited, a company promoted by Obulapuram Mining Company in Bellary, to set up an INR 4,500 crore integrated steel plant in Kadapa district of Andhra Pradesh after Andhra Pradeshs State Investment Promotion Board cleared the project. As per reports, the plant will produce 2 million tonnes of steel in the first phase and may later expand it to 10 million tonne at an investment of INR 20,000 crore by the year 2017.
BEML and Midwest Granite forms a mining JV
Bharat Earth Movers Limited announced that JV named BEML Midwest Ltd has been incorporated jointly by BEML and Midwest Granite P Ltd to carry on in the business of mining activity.
The release adds that the JV is being formally launched on May 24th 2007 at Hyderabad.
Bhushan Steel Limited clarifies stake in Bowen Energy
With reference to the news item appearing in a leading financial daily titled, "Bhushan Steel eyes 15% in Aussie firm", Bhushan Steel & Strips Ltd has clarified to BSE that, for supply of coal for the Company's plant at Orissa, the Company has entered into MOU with Bowen Energy Ltd of Australia.
The statement adds that In order to ensure regular supply of coal, the management decided to take 15% stake in the said Australian Exploration Company Bowen Energy Ltd. This is a step towards vendor development ensuring regular supply of one of the major inputs for manufacture of steel.
Bharat ForgeS 2006-07 net up 16.42% YoY
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
Norilsk tops Xstrata's offer for LionOre by 10%
Norilsk Nickel has increased its bid for LionOre Mining International Ltd to CAD 6.8 billion (USD 6.3 billion) thus raising the stakes in its battle with Xstrata Plc. Norilsk Nickel's revised CAD 27.5 per share bid for LionOre is 10% higher than a rival offer from Xstrata on May 15th 2007.
Vedomosti citing an unidentified person close to the company reported that Norilsk's 9 man board voted 8 to 1 in favor of the increased offer. The only one, who voted against the proposal, was Mr Mikhail Prokhorov owner and former CEO.
Mr Denis Morozov CEO of Norilsk said that his company's latest bid had been discounted to take break fee, which has compromised a fair bidding process. Mr Morozov added that the increased offer reflected Norilsk's desire to increase its scale in key commodities, expand geographically and participate in several growth projects.
Norilsk also announced that it has received approval on Tuesday from Germany's Federal Cartel Office for its proposed acquisition and has already received anti trust clearance in Canada. The company is still in talks with antitrust authorities in South Africa, Switzerland and Norway.
Xstrata declined to comment. Its offer last week included a CAD 305 million break fee, which would be paid to Xstrata should LionOre accept a rival bid.
China steel majors to set up iron ore JV in Cambodia Report
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
MMKs update on steel facility in Turkey
After the initial report last week that Magnitogorsk and Turkish Atakas are planning to build a steel facility in Turkey for about USD 1.1 billion, MMK has released an official update on the project.
The plant will have capacity of 2.6 million tons of metal products per year and will specialize in the production and processing of hot and cold rolled sheet as well as galvanized and color coated rolled steel products. The project site is in the industrial areas of Iskenderun and Istanbul and is expected to take more than three years to realize and has the approximate cost of USD 1.1 billion.
Mr Viktor Rashnikov chairman of MMK said that "The dynamic and rapidly growing market of Turkey is not fully sufficient in metal production capacities and is thereby attractive to steel producers. The implementation of this project is fully in line with the strategy of MMK, which includes expansion in growing markets. The project will contribute to increasing the strength of MMK's position on the global steel market."
Mr Rejep Atakas CEO of Atakas Group said "We are pleased with the opportunity to implement a joint project with a leading global steel producer such as MMK. I am certain that the dynamic development of the Turkish economy, MMK's long standing expertise in steel production together with the strong position of Atakas Group on the Turkish market will ensure the success of the project."
Atakas Group of Companies is mainly involved in activities concerning imported coals. The Group has sieving and packing facilities with an annual capacity of 2 million tons located in Iskenderun, Marmara, and Blacksea regions. The Group also owns two factories for production of pressed coals of European standards with an annual production capacity of 500.000 tons located in Payas Organized Industrial Zone and Gebze Organized Industrial Zone. Atakas Group of Companies was also involved in production and marketing of round construction irons between 1975 and 2005 and has initiated construction works of a wharf in Dtyol district of Hatay in 2007.
BHPB open to buyouts if they make business sense
Mining giant BHP Billiton, although tight lipped about its interest in Rio Tinto Ltd, is always looking for acquisitions if it makes business sense.
Mr Charles Goodyear CEO of BHPB while responding to questions about recent reports that BHP Billiton could make a takeover bid for Rio Tinto at a function in Perth said that "We don't comment on specifics, we do look at everything and determine if it does look good for our business., whether that is Rio Tinto or anybody else, it is our job to do that but specific situations we wouldn't comment on.
Mr Goodyear added that "We always look at acquisition opportunities. We can be opportunistic, the Ghengis Khan acquisition at the end of last year we did that in three weeks. We can move very quickly but we have to make sure we understand why we're doing it, we don't have to do it for size, and our position in the industry is a very strong one."
Mr Goodyear, when asked that if he was concerned about private equity involvement in the resources sector said that "Not particularly. What concerns me is their short term focus. My job as chief executive and a member of the board is to create value for shareholders."
Earlier this month the market was awash with speculation that BHP Billiton could take out its rival in an AUD 122 billion plus deal. Citigroup analysts fuelled the takeover talk. They said while Rio Tinto's strong cash flow could make it an attractive target for private equity firms, BHP Billiton was a more likely bidder given the synergies that could be generated.
NAB raises base metal price forecasts for 2007
National Australia Bank Ltd announced that it has raised its forecast for its base metals index to average 416.5 points in 2007 a YoY increase of 36%. Previously it had forecast the index which measures aggregate base metals prices would average 357.0 points in 2007. NAB said the index surged 9.7% in April from March to average 454.0 points due to rising nickel prices and resurgence in the copper market.
Mr Gerard Burg minerals & energy economist of NAB said that global metal demand remains driven by China adding that the raised forecast for the base metals index reflects recent upgrades to China's economic growth forecasts. He said Slowing metal consumption in the US is likely to be more than compensated by increased demand in rapidly growing economies such as China and India.:
Mr Burg said that Nickel stockpiles on the London Metal Exchange remain perilously tight with stocks at the end of April at around 1.3 days of consumption. The continued strength of stainless steel production is underpinning global demand with nickel supplies unable to rapidly increase. He said hopes of fresh supplies are limited in the short term, due to construction delays at new projects such as the Goro project in New Caledonia and Ravensthorpe in Australia.
Mr Burg said NAB has lifted its nickel price forecast to average USD 44,200 a ton in 2007 from a previous forecast of USD 35,057 making a YoY increase of 82%.
Mittal Steel US to reopen plate mill at Gary Works - Report
It is reported that Mittal Steel USA's is taking a decision to reopen a 160 inch plate mill at Gary Works plant. Gary Works plate mill has not been operational since the early 2000s, when it was acquired by International Steel Group Inc.
Mr Paul Gipson president of United Steel Worker's union Local 6787, which will represent the prospective plate mill workers, said that "This is great. It is 200 new jobs very good jobs. It's a very good thing for us and the area."
Mr Gipson who was in Pittsburgh negotiating how the plate mill will be staffed said the market for plate justifies reopening the mill. It was shut down by US Steel when the market for plate products became oversaturated by the emergence of the mini mills and the price of plate fell below the cost of its production. He said that the market for windmills and tanker trucks is booming and justifies reopening the facility. He said "Demand for plate has reached such a level we've never seen. The market is getting USD 1,000 a ton for some types. I remember when it was USD300."
Mr Gipson estimates that Mittal Steel will need to invest about USD 35 million to reopen the mill which was last refurbished in 1990. It probably will be up and running by September.
The report cites a spokesman for Mittal Steel USA as saying that he has heard rumors about the restart of the plate mill, but he didn't have anything definite to report.
NLMK to upgrade electrical steel lines at Lipetsk and at Viz Stal
It is reported that Novolipetsk Steel and the Austrian company Andritz AG will sign a EUR 90 million equipment supply agreement in Vienna. The new equipment will be installed throughout 2008 and 2009 as a part of the 2nd Phase of the Technical Upgrading Program.
Andritz AG will supply 2 new rolling mills to modernize the NLMKs grain and non grain oriented steel rolling mills at Lipetsk and a reversing grain oriented steel rolling mill at VIZ Stal production platform. The agreement also provides for hot dip galvanizing line at the companys major production site in Lipetsk. The new line will produce 300,000 tonnes of zinc coated rolled steel products with the possibility of processing them further into pre painted steel.
The Technical Upgrading Programs 2nd Phase, which is already underway and will last until 2011 will see investments of USD 4 billion and the key goals of the program include
1. To increase crude steel production from 9 million tonnes per year to 12.4 million tonnes per year.
2. To achieve 100% self sufficiency in major raw materials.
3. To increase production of finished flat steel products from 5 to 9.5 million tonnes through the modernization of existing rolling facilities and the acquisition of new rolling assets.
Alcan in talks with BHPB Report
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
POSCO and Vinashin to study viability of steel plant in Vietnam
POSCO has recently announced that it will carry out a feasibility study with Vietnam Shipbuilding Industry Corporation to jointly set up an integrated steel mill in Vietnam and that a MoU has also been signed for the purpose. The steelworks would be the South Korean company's second crude steel mill overseas after its USD 12 billion integrated steel mill in India.
Under the MoU, the 2 companies will analyze factors, such as building site, technology, raw materials and market that would affect setting up such a steel plant in Vietnam. The statement from POSCO provided no other details about the plant.
Mr Lee Dong Hee CFO of POSCO said that "The exact plan depends on the result of the feasibility study but output of the mill would be 4 or 5 million tons."
POSCO has also announced earlier that it will build a cold rolled steel plant with an annual output of 1.2 million tonnes by 2009 and a 3 million tonnes hot rolled steel plant by 2012 in Ba Ria Vung Tau province of Vietnam.
ACCC postpones decisions on Smorgon, OneSteel and BlueScope proposal
A decision from Australia's competition watchdog Australian Competition and Consumer Commission on the planned break up of Smorgon Steel Group Ltd by BlueScope Steel Ltd and OneSteel Ltd will take longer than expected, as talks with the steelmakers continue. ACCC had been expected to deliver its ruling on the break up on Wednesday.
Ms Lin Enright spokeswoman of ACCC said "We are seeking a bit of further information and decision will be made shortly. It won't be today, but it won't be months."
In its notice, the ACCC said the focus of the talks was to address issues relating to the effectiveness of imports as a competitive constraint.
After months of wrangling, OneSteel and BlueScope reached a deal in March whereby BlueScope, would snap up Smorgon's distribution business for about AUD 700 million. The remainder of Smorgon's assets will merge with OneSteel, in an AUD 1.1 billion deal, via a scheme of arrangement. BlueScope has agreed to support the merger with its 19.98% stake in Smorgon, which it snaffled in order to block a merger of OneSteel and Smorgon.
In a joint statement, the three companies said they remain committed to the deal. They said "Smorgon Steel, OneSteel and BlueScope see benefits accruing to the customers, suppliers, employees and shareholders of each company from completion of the merger and the BlueScope Steel acquisition, and remain committed to bring the merger at the BlueScope Steel acquisition before a meeting of Smorgon Steel shareholders at the earliest possible date.
Baosteel Meishans modernization plan approved by NDRC
It is reported that Baosteel Meishan Iron and Steel Co has received the approval of product mix restructuring and technology & facilities upgrade project from the National Development and Reform Commission.
In this project, Baosteel Meishan will eliminate overtime served two 130 square meter & one 180 square meter sintering machines, three 4.3 meter coke ovens, two 1250 cubic meters & one 1280 cubic meters blast furnaces as well as two 20 tonnes converters, three 20 tonnes & three 10 tonnes electric furnaces at Nanjing No 2 and No 3 steel works.
Meanwhile, to be built equipments include two 300 square meter sintering machines, four 6 meter coke ovens, two 2800 cubic meter blast furnaces, two 150 tonnes converters, one set of 1700 m thin slab rolling line and a set of 1550mm cold rolling line as well as matched galvanizing mills.
Baoshan Steel Group incorporated Shanghai Metallurgical Holding Group and Shanghai Meishan Group and formed Shanghai Baosteel Group Corporation in November 1998 and in December 2000, Baoshan Iron & Steel Co got 74.01% stake of Meishan Steel from Baosteel Group and Meishan Group.
(Sourced from MySteel.net)
POSCO to set up auto steel plate processing centre in Chongqing
POSCO has announced a plan to set up an auto steel plate processing centre at Chongqing in southwest China. The first phase, with an investment of USD 10.6 million, is scheduled to go into operation in January 2008.
Upon completion, the facility is expected to have an annual steel plate production capacity of 120,000 tonnes with a sales income of CNY 960 million (USD125 million).
LionOre to study revised bid from Norilsk
LionOre Mining International Ltd has announced that its board will review a CAD 6.8 billion (USD 6.3 billion) takeover bid announced by Norilsk Nickel.
It said that LionOre board will study the revised bid of CAD 27.50 in cash per share, which trumps by 10% a previous offer from Xstrata Plc when it becomes available and issue a statement to LionOre shareholders.
Earlier Xstrata offered CAD 6.2 billion or CAD 25 per share for LionOre including a CAD 305 million break fee payable to Xstrata if LionOre accepts a rival offer.
Mr Canaccord Adams analyst at Orest Wowkodaw said that "While we previously believed a revised bid by Norilsk was likely despite what appeared to be a prohibitive break fee, we are less convinced that Xstrata will return for a third time with a higher offer. We note that if Norilsk is successful, the company will have to indirectly pay an additional CAD 1.25 per share break fee to Xstrata, raising the ultimate acquisition price to CAD 28.75 per share."
LionOre, the world's 10th largest nickel miner, has a 2007 forecast output of 40,000 tonnes of nickel and is expected to double by 2012.
ACCC approves reinstating CBS system at Newcastle
The Australian Competition and Consumer Commission has given the final tick of approval for Port Waratah Coal Services to reinstate the counter balancing system for getting coal onto ships.
Mr Graeme Samuel chairman of ACCC said that PWCS estimated it would take until July to cut the queue to a more workable level using the reinstated, amended CBS. He said "Reinstating the system is expected to result in significant demurrage savings for the industry for the remainder of 2007. PWCS estimates the size of these savings could be upwards of AUD 175 million. The ACCC is also satisfied that reinstating the amended system will not constrain export growth."
Mr Samuel rejected criticism that the CBS had reduced coal production and relieved the pressure on the industry to invest in infrastructure to expand capacity. He said "Any limits on production levels at individual mines are a factor of the limited capacity of the coal chain, and not the reinstatement of the capacity balancing system itself. If there was no system in place, the coal chain would not be able to export more coal and producers would need to reduce production as vessels wait even longer in the queue to load coal and to avoid excess stockpiling at mines.
Mr Samuel said an imbalance remained between the amount of coal producers wanted to export and the infrastructure capacity for moving coal from mines onto ships, despite a lift in the port's capacity to 102 million tonnes a year.
The NSW government has approved plans by a consortium of mining companies to build a new AUD 922 million terminal at the port to increase capacity and boost exports by AUD 1 billion, but it is not expected to be operational until the second half of 2009.
Dunaferr plans 3 million tonne HSM capacity
Industrial Union of Donbasss Hungarian steel works Dunaferr announced that it plans to spend EUR 500 million on developments over the next four years with the primary aim to boost finished product output.
Dunaferr plans EUR 500 million worth of investments so that the output of hot rolled products could be increased from 1.7 million tonnes in 2006 to 3 million tonnes and capacity of the cold rolled segment is to be doubled to 1million tonne. It will also build a new power plant with a planned capacity of 125MW to 130MW.
Mr Valeri Naumenko CEO of Dunaferr said that "Revamping the company's operations and the integration of external units is indispensable to achieve the planned developments in the next five years." Mr Naumenko said they would not increase base material output, instead Dunaferr would focus on efficiency and quality enhancement in this line of business.
He added that From a certain point of view Dunaferr can become a finished product maker depending on what you call finished product, given that the goods we are currently making compared to coal mining for instance are definitely finished products."
EU to decide on Salzgitter buy of VPE by June 26th
Thomson Financial reported that the European Commission announced that the deadline for its inquiry into Salzgitter AG's proposed acquisition of Vallourec SA's Precision Etirage unit is set for June 26th 2007.
VPE, which specializes in cold rolled precision steel tubing, will complement Salzgitter's existing activities operated by German unit MHP Mannesman Praezisrohr and Dutch unit Mannesmann Robur. VPE has five production plants in France and employs 1,230 people. Salzgitter will also acquire Vallourec's German hot rolling tube mill in Zeithain as a part of transaction, whose value has not been disclosed.
Bekaert to close UK facility
Thomson Financial reported that steel cord and wire manufacturer Bekaert SA has announced that it will close its production plant at Cleckheaton in West Yorkshire in UK. It produces short staple products for textile machinery manufacturing and employs 57 people.
Bekaert SA said that "Given the structural shift of the production of cotton yarns for the textile industry to Asia and the total disappearance of market demand for these products in the United Kingdom, Bekaert wants to integrate the Cleckheaton activities in other Bekaert facilities."
The distribution centre for Europe, the Middle East and Africa will be transferred to Zwevegem in Belgium.
Metal Management acquires Mars Industries
It is reported that Metal Management Inc has acquired substantially all of the assets of Mars Industries Inc located at Detroit in US. Financial terms of the transaction were not disclosed.
Privately owned Mars, which was founded in 1987, provides full service scrap metal recycling services in the Detroit area. Mars currently handles approximately 360,000 tons of ferrous scrap metals per year.
USs weekly steel production down by 5.8% YoY
American Iron & Steel Industries reported that in the week ending May 19th 2007, USs raw steel production was 2.085 million net tonnes while the capability utilization rate was 87.2 %. Production was 2.215 million tonnes in the week ending May 19th 2006 while the capability utilization then was 92.5%. The current week production represents 5.8% decrease from the same period in 2006.
Production for the week ending May 19th 2007 is up by 0.8% from the previous week ending May 12th 2007 when production was 2.068 million tonnes and the rate of capability utilization was 86.4%.
Adjusted YTD production through May 19th 2007 was 39.754 million tonnes at a capability utilization rate of 84.3%. That is a 7.2% decrease from the 42.853 million tonnes during the same period 2006 when the capability utilization rate was 90.2%.
AISIs estimate is based on reports from companies representing about 75% of the USs raw steel capability and includes revisions for previous months.
International Metal Services to buy Cotubel from Marcegaglia
It is reported that International Metal Service is in talks with Marcegaglia to buy the Italian company's stainless steel distributor Cotubel. The transaction should be completed by mid June, subject to regulatory approval from German anti trust authorities.
The acquisition will endow IMS with an entirely new line of activity in tubes and fittings, while strengthening its three main product lines mechanical engineering, anti corrosion and anti abrasive steels. It will also open up new distribution channels in the chemicals, agricultural and energy markets.
London Mining to expand iron ore operations in Brazil
BNamericas reported that UK based iron ore mining company London Mining is interested in further expanding its presence in the Brazilian iron ore industry.
Mr Chris Brown MD of London Mining told BNamericas that, earlier this month London Mining snapped up Brazilian iron ore miner Minas Itatiaiuu, based in Minas Gerais state, which operates a 1.5 million tonnes per year mine with a resource of 268 million tonnes. He added that But we plans to increase production to at least 3 million tonnes per year by processing 17 million tonnes of stockpiles that have been accumulated and later by adding additional shifts to the mining operation.
Mr Brown added that output is due to mainly target markets abroad. He said "We expect to grow through exports, and we will be considering other acquisitions. Whether we will actually do that, I can't say at the moment."
In addition to Brazil, London Mining also has assets in Sierra Leone and Greenland.
Alcan in talks with BHPB - Report
It is reported that Canadian aluminum producer Alcan, fending off a hostile takeover bid by US Alcoa, has entered into talks with Australian mining giant BHP Billiton. Canada's Globe and Mail, citing unidentified people familiar with the matter, reported that Alcan was in talks with BHP Billiton the world's biggest resource company. Both Alcan and BHP Billiton did not comment.
Alcan rejected Alcoa's offer as inadequate on Tuesday, saying that the company was exploring alternatives, including ongoing discussions with third parties. Alcan's board recommended that shareholders reject the bid because it believed the bid undervalued the company and was not in investors' best interests.
Analysts say such a deal could be in the works and that still other suitors may be waiting in the wings. Mr Bill Selesky an analyst at Argus Research Corp said market speculation indicates that several industry players, including BHP Billiton and Anglo Australian rival Rio Tinto PLC, may be talking with Alcan. He said that "Alcan fits into either one. I think it's entirely plausible that something like this could happen."
According to analyst Mr Charles Bradford of Bradford Research said that in addition to BHP Billiton and Rio Tinto, Alcan may have a third potential buyer Brazil's Companhia Vale do Rio Doce SA. He said that "These are the guys that are big enough to buy an Alcan."
Alcoa launched its cash and stock bid for Alcan on May 7 after almost two years of private talks failed to produce a negotiated agreement. Alcoa has maintained its offer brings attractive value to Alcan shareholders.
China steel majors to set up iron ore JV in Cambodia - Report
XFN-ASIA reported that China's 4 steel companies Wuhan Iron and Steel Corp, Baosteel Group Corp, Anshan Iron & Steel Group Corp and Shougang Group have signed an agreement to set up a JV ahead of a planned iron ore project in Cambodia.
The report added that Wuhan will be the biggest shareholder in the JV with 50%. But no specific investment estimates were provided.
The big four Chinese company are preparing to start operations in Cambodia at a concession with 200 million tons in estimated iron ore reserves.
Steel makers welcome Canadas joining WTO consultations on subsidies in China
Canadian Steel Producers Association welcomed the announcement by Mr David Emerson the minister of international trade that Canada has joined the request initiated by the United States at the World Trade Organization for consultations with China on prohibited industrial subsidies.
Mr Ron Watkins president of CSPA said "This is a positive first step by Canada within the formal processes of the WTO to engage China in a constructive manner regarding its trading practices. We continue to be concerned that China has not fulfilled its WTO obligations in particular with respect to the array of illegal subsidies provided to many sectors including steel. The subsidies in question distort markets threatening the competitive environment for manufacturing enterprises and the significant jobs they sustain."
Mr Watkins said that CSPA has consistently taken the view that China must adhere to the WTO rules to which it has agreed as a condition of its full participation in global markets including that of Canada. The impact of subsidies is particularly pronounced in the steel sector both directly in steel products and indirectly through imports of steel-intensive goods. Canada's steel producers are prepared to compete fairly on a commercial basis but our producers cannot compete against foreign governments in the marketplace."
The original US complaint was filed on February 2nd 2007, and Mexico took similar action shortly thereafter. These filings identified a series of practices of concern including various export subsidies as well as import substitution policies. China had committed to removing these measures upon accession to the WTO in December 2001 but several of these measures remain fully or partially in place.
Mittal Steel US to reopen plate mill at Gary Works Report
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
London Mining to expand iron ore operations in Brazil
Bharat Forge Ltd has announced the financial results for the quarter & year ended March 31st 2007.
Unaudited results for the quarter ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 642.81 million for January to March 2007 period up by 21.25% YoY as compared to INR 530.12 million for same period last year while total income has recorded at INR 5382.70 million for January to March 2007 period up by 18.89% YoY as against INR 4527.42 million for the same period last year.
Audited results for the Year ended March 31st 2007
Bharat Forge Ltd has posted a net profit after tax of INR 2409.53 million for the year ended March 31st 2007 up by 16.42% YoY as compared to INR 2069.65 million for the year ended March 31st 2006 while total income has recorded at INR 19452.97 million for the year ended March 31st 2007 up by 19.27% YoY as against INR 16309.50 million for the year ended March 31st 2006.
Audited consolidated results for the Year ended March 31st 2007
Income attributable to the consolidated group of INR 2905.88 million for the year ended March 31st 2007 up by 15.98% YoY as compared to INR 2505.42 million for the year ended March 31st 2006 and total income has recorded at INR 42752.13 million for the year ended March 31st 2007 up by 38.58% YoY as against INR 30850.13 million last year.
