June, 02 2007
SAIL board approves steel plant JV with RINL & NMDC in Chhattisgarh
Steel Authority of India Ltd announced that the its board of directors has approved in principle the proposal for setting up a steel plant in Chhattisgarh with an initial capacity of 4 million tonnes per annum as a JV with equity participation from Rashtriya Ispat Nigam Limited and National Mineral Development Corporation.
The releases added that the necessary activities for finalizing the MoU with the JV partners are being initiated.
SAIL also said that The board also reiterated that action required for setting up of a green field plant in the state of Jharkhand linked to iron ore lease may be taken by SAIL.
JSLs nickel consumption to double after start of Orissa plant
Reuters reported that Jindal Stainless Limited expects its monthly nickel consumption to double to more than 1,600 tonnes when its new plant starts operation in three years. JSL which runs a 600,000 tonnes a year plant at Hissar in Haryana is building a new factory in Orissa that will make 800,000 tonnes of stainless steel when it begins production in 2009 to 2010.
Mr VS Jain MD of JSL said that "Our total nickel requirement now is about 800 to 900 tonnes per month. When we produce another 800,000 tonnes of stainless steel our nickel consumption would double.
Mr Jain also said that JSL aims to eventually raise its total capacity to 2.5 million tonnes to feed India's fast growing economy but it has not set a time frame for the expansion that will include raising the capacity at its Hissar plant to 900,000 tonnes.
CIL and DVC ink MoU for mining equipment JV and MAMC revival
BL reported that Coal India Ltd and Damodar Valley Corporation have signed a MoU to examine prospects for joint development of manufacturing facilities for underground mining machinery and handling equipment and for the consequent revival of the Durgapur based sick public sector undertaking Mining & Allied Machinery Corporation.
As per CIL officials, there has been a shift in focus from open cast mines to underground coal production and their target is to produce 75 million tonnes of coal per annum from underground mines by 2011-12 as compared to 45 million tonnes now. CIL also has plans for 29 new underground mines in the 11th Plan at an estimated investment of INR 3,650 crore.
To reduce dependence on imported equipment, it was deemed fit to revive MAMC as a source of vital equipment and spares required by coal handling systems and other plants.
DVC has plants in Jharkhand and West Bengal, which are fed by coal from CILs subsidiaries like Bharat Coking Coal Limited, Eastern Coalfields Limited and Central Coalfields Limited.
TATA Power to take INR 14,000 crore loans to fund Mundra UMPP
BS citing Mr S Ramakrishnan executive director finance of TATA Power reported that TATA Power Company will rise up to INR 14,000 crore in loans to fund its INR 18,000 crore ultra mega power project at Mundra in Gujarat and has appointed SBI Capital Markets as head arranger for the fund. The remaining INR 4,000 crore will be funded through internal resources.
As per report, TATA Power is also in talks with Asian Development Bank and International Finance Corporation for raising a part of the INR 14,000 crore. Mr Ramakrishnan said that ADB and IFC are also keen on picking up stake in the Mundra project.
NTPC and TELK's JV gets Kerala's approval
It is reported that Kerala cabinet has approved the proposed 51:44.6 JV between the State owned Transformers and Electricals Kerala Ltd and the National Thermal Power Corporation. As of now, Hitachi of Japan and a few individuals have a combined holding of 4.4% in TELK and this will continue as such in the new entity. The JV agreement between the Kerala government and NTPC would be signed by the middle of June.
SBI caps had conducted assets and machinery valuation in tandem with the JV plan. The projected outlay for the modernization and expansion program is INR 190 crore, out of which 65% would be mobilized as loans and the remaining 35% as equity.
The modernization and capacity expansion of the state-owned Transformers and Electricals Kerala Ltd will be implemented in three phases. In the first phase, the capacity will be raised to 5,500 MVA from the existing 4,500 MVA. In the second phase, the capacity will be further enhanced to 10,000 MVA. In the third phase, it will be equipped with mobile transformer repair facility.
TELK is engaged mainly in the manufacture of power transformers, voltage transformers and circuit breakers. At present, the company is unable to utilize the full capacity due to financial constraints and technological shortcomings.
Gujarat State Petronet's Surat Vapi gas pipeline commissioned
Mr Narendra Modi chief minister of Gujarat has inaugurated Gujarat State Petronet's 30 inch diameter 128 kilometer long Surat to Vapi pipeline to provide transmission services to major markets in Gujarat from various supply sources such as GSPC's Niko fields in Hazira, the Panna Mukta Tapti JV fields at Bombay High, Shell's LNG Terminal at Hazira, Cairn's field at Suvali and the PLL LNG Terminal at Dahej.
Gujarat State Petronet Ltd has already planned to lay nearly 2,200 kilometers of pipelines under the gas grid project and has a pipeline network of 1,200 kilometer currently that supplies gas to 26 customers in industrial cities. In addition, Gujarat State Petronet Ltd is also constructing a 30 inch diameter 1100 kilometer long Rajkot Jamnagar pipeline along with the 24 inch diameter 250 kilometer long Dharod to Pipavav, 2500 kilometer long Morbi to Mundra and 120 kilometer long Mehsana to Palanpur pipelines.
Haryana power utilities to buy power from renewable energy
PTI has reported that power utilities in Haryana will have to buy at least 3% of the total energy consumed in the state during 2007-08 from renewable energy sources and than increase this to 10% by 2009-10.
Haryanas electricity regulator has already issued directions to make it mandatory. An official spokesman of Haryana Electricity Regulatory Commission said that it has issued orders on renewable energy tariff and other issues for 2007-08 to 2012-13. He added that distribution licenses will have to buy a minimum of 3% from non conventional energy sources for 2007-08, 5% in 2008-09 and 10% in 2009-10.
The commission has fixed the tariffs for electricity purchased from wind energy projects, mini hydel, bio mass and bagasse co generation projects. He said the commission has fixed the wheeling charges at the rate of 2% of the energy fed to the grid.
HERC has also allowed banking facilities with the condition that surplus energy at the end of the financial year would not be allowed to be carried forward to the next year. As per the provisions of Electricity Act, 2003, National Electricity Policy and National Tariff Policy, state regulators must specify the percentage of power to be bought by distribution firms from non conventional projects.
The spokesman also added that Haryana Renewable Energy Development Agency has been declared a nodal agency for promotion of renewable energy in the state.
Approval for 2 port projects in Sindhudurg district of Maharashtra
Maharashtra cabinet has given a green signal to Hindustan Infrastructure Project & Engineering and Earnest Shipping & Ship Builders for developing 2 ports projects in Sindhudurg district. They will implement these projects by forming special purpose vehicles within 60 days of receiving letters of intent.
Hindustan Infrastructure Project & Engineering will sign a MoU for an investment of INR 1,000 crore to build Vijaydurg port which will have the capacity to handle 7.5 million tonnes per annum of cargo in its first year of operation and scale up the capacity to 75 million tonnes per annum on completion of work.
Earnest Shipping & Ship Builders will invest INR 995 crore in developing Reddy Port in Sindhudurg district.
Punj Lloyd's 2006-07 net profit up by 75.27% YoY
Punj Lloyd Ltd has announced audited results for the quarter & year ended March 31st 2007.
The results for the quarter ended March 31st 2007
Punj Lloyd has posted a net profit of INR 231.8 million for the January to March 2007 period while its total income is recorded at INR 8193 million for the same quarter.
The results for the year ended March 31st 2007
Punj Lloyd has also posted a net profit of INR 615.9 million for the year ended March 31st 2007 up by 75.27% YoY as against INR 351.4 million for the year ended March 31st 2006 while its total income is recorded at INR 23054.8 million for the year ended March 31st 2007 up by 64.32% YoY as against INR 14030.3 million last year.
The consolidated results for the year ended March 31st 2007
It has also posted a profit for the year after minority interest & share of profits of associates of INR 1969.3 million for the year ended March 31st 2007 up by 255% YoY as against INR 554.6 million last year while its total income is recorded at INR 52059.6 million for the year ended March 31st 2007 up by 203% YoY as against INR 17165.9 million last year.
Punj Lloyd has acquired 100% stake in Singapore based Sembawang Engineering & Construction Pte Ltd in October 2006 through Punj Lloyd Pte Ltd. The consolidated financials for the year are therefore not comparable with the previous year financials.
ER's Howrah Division to increase coal traffic in 2007-08 by 118% YoY
BL reported that Eastern Railway's Howrah division, which started handling coal traffic a couple of years ago, is now set to achieve a big jump in throughput. Its coal throughput was barely 0.1 million tonnes in 2005-06 and has jumped to 1.6 million tonnes in 2006-07. Mr AK Maitra divisional railway manager for Howrah Division of ER told Business Line that "In the current fiscal, we hope to handle 3.5 million tonnes of coal. The coal has found wide acceptance among power houses in the northern region."
Mr Maitra attributed the increase in coal traffic to Punjab Emta, a JV between Punjab State Electricity Board and Emta Group of West Bengal engaged in transportation of power grade coal from Pakur area in Jharkhand to Punjab. Mr Maitra added that "In Pakur, we've 17 dedicated rakes for closed circuit movement for transportation of stone and stone chips and we've already introduced the system in respect of them." As a result coal rakes could run without inspection for 15 days. In Pakur, stone and stone chips had been the major traffic till recently.
Mr Maitra further added that "We are working on a comprehensive scheme to augment various facilities at Pakur in view of the projected increase in traffic throughput. The volume of coal traffic might go up to 10 million tonnes annually by the end of the 11th Plan."
The average daily coal loading of wagons in terms of 4 wheelers in the Howrah division has gone up from 10 in 2005-06 to 177 in 2006-07. The figure in the current year is estimated to be 390 wagons per day. Mr Maitra pointed out that the daily average loading of wagons for stone and stone chips jumped from 581 in 2005-06 to 693 in 2006-07 and was estimated to rise to 800 in the current fiscal.
Arcelor Mittal unveils new brand
It is reported that, as part of the events at the 3 day Leadership Conference attended by 500 top managers of group during May 29th to May 31st, the new Arcelor Mittal brand has now been launched at Cannes in France.
Mr LN Mittal president & CEO of Arcelor Mittal declared that Arcelor Mittal is now in a stronger position to influence positive future change in the industry. He explained that moving towards an integrated and aligned company was not possible under the old Arcelor and Mittal logo.
The new Arcelor Mittal global advertising campaign was also revealed. The rollout of the new brand will occur throughout Arcelor Mittal and across the globe over the next 12 months.
Stelco shareholders considering selling out - Report
It is reported that Stelco Inc could be the next Canadian steel company on the auction block. As per the report, shareholders who own more than half of Stelco are expressing interest in cashing out of the company in the midst of a massive restructuring of the steel industry and strong commodity prices.
Stelco said in a statement that it is considering a merger, strategic partnerships, acquisitions or a sale of all or part of the company. But it gave no assurance a deal would happen. It said in a statement that Discussions regarding these alternatives with third parties are at a very preliminary stage and there have been no discussions on the material terms of any transaction. Stelco added that it has appointed a special committee of directors and advisers, including CIBC World Markets and UBS AG, for a review of its options.
Mr Rodney Mott CEO of Stelco had recently said that It is appropriate to begin the next phase of our business plan and explore all potential alternatives for positioning Stelco to be an integral part of a larger, globally competitive company.
Canada's Globe and Mail newspaper, citing unidentified industry sources, reported that Toronto's Brookfield Asset Management Inc, which runs a restructuring fund that is Stelco's largest shareholder at about 36% and Appaloosa Management, a US hedge fund that owns 18%, have suggested they are ready to sell at a premium to the current market price for Stelco stock. Analysts suggested that it could be a good time for such investors to plan an exit in advance of a possible downturn in high flying markets.
Hamilton, Ontario based Stelco Inc Stelco was created in 1910 from the combination of several companies and it emerged from bankruptcy in 2006. Stelco makes about 3.7 million tons of steel each year, including sheet steel used in auto and appliance manufacturing. Its shares gained the most in last13 months. Shares of Stelco rose to CAD 31.93 at 3:59 PM at Toronto Stock Exchange. At that price, the company is valued at about CAD 866.1 million.
Canadian steel industry has witnessed many acquisitions since 2006 beginning. It started with Arcelors acquisition of Dofesco followed by Essars acquisition of Algoma Steel in April 2007 and that SSAB Svenskt Staal ABs bid for Ipasco in May. The list of companies that could express interest in Stelco is lengthy and could include Severstal, Evraz Group, ThyssenKrupp and Arcelor Mittal.
US's steel imports in April decline by 9.2% YoY
The US Census Bureau announced that preliminary April 2007 steel imports were 2.504 million tons valued at USD 2.4 billion as compared with the preliminary March 2007 imports of 2.759 million tons valued at USD 2.5 billion.
The report added that the March to April 2007 change in steel imports, based on metric tonnage, reflected decreases primarily in reinforcing bars, cold rolled sheets and wire rods. Increases occurred primarily in line pipe greater than 16 inches in diameter. Monthly changes in steel imports reflected decreases primarily with China and Russia. An increase occurred primarily with Mexico.
The YTD final statistics through March 2007 showed steel imports of 7.9 million tons as compared with 10.2 million tons through March 2006. The largest commodity decreases were in blooms, billets, and slabs; hot rolled sheets; and wire rods. The largest country decreases were in Russia and Turkey. The largest country increase was in China.
Xstrata not to exercise right to match Norlisk's offer for LionOre
Xstrata plc announced that it has notified the board of LionOre Mining International Ltd that it is not matching the offer made by OJSC MMC Norilsk Nickel by increasing the consideration payable under Xstrata's offer to acquire all of the issued and outstanding LionOre shares.
On May 24th 2007, LionOres Board declared that Norilsks offer was a superior proposal under the terms of the support agreement entered into between Xstrata and LionOre on March 25th 2007, as amended. Under this support agreement, Xstrata had the right to match Norilsks offer on or prior to June 1st 2007.
LionOre notified Xstrata on May 24th 2007 that, should Xstrata elect not to exercise its right to match, LionOre will terminate the support agreement pursuant to a provision of the support agreement that requires LionOre to pay to Xstrata a termination payment of CAD 305 million either prior to or concurrently with the termination.
Xstrata also announced the extension of the expiry time for Xstrata's Offer of CAD 25 per LionOre share from June 7th 2007 to midnight on June 15th 2007. All other terms and conditions of Xstrata's Offer described in Xstrata's offer and offering circular dated April 5th 2007, as varied, amended and supplemented by Xstrata's notice of variation dated May 15th 2007 and notice of extension dated May 28th 2007, remain unchanged.
Japanese steelmaker welcome US ITCs AD ruling on OCTG
It is reported that Japanese steelmakers welcomed the US International Trade Commission's recent decision after a sunset review to eliminate anti dumping duties on oil country tubular goods from Japan, which has been in effect since 1995.
Mr Hiroshi Adachi chairman of the Japan Steel Information Center said that the ITC vote acknowledges the fact that Japanese OCTG shipped to the United States will not harm US steelmakers.
Mr Adachi said that "The Japanese industry and major oil companies argued to the ITC that Japanese OCTG is highly specialized and of significant importance to the US energy industry. The US OCTG industry is making record profits and cannot supply all of the highly specialized OCTG required by major oil companies as they search for oil and gas in harsh environments."
He added that in 2006 US prices for OCTG rose significantly more than double the level of two years earlier while rig counts remained high and an inventory overhang caused by hedge buying to avoid further US price increases resulted in some price weakness the US OCTG industry is in excellent condition notwithstanding competition with imports.
Anglo American announces Mondi demerger
Anglo American plc announced that it is posting documents to its shareholders in relation to the demerger and public listing of its paper and packaging subsidiary, Mondi Group and a share consolidation of existing ordinary shares in Anglo American.
As previously announced, the Mondi Group will be demerged as a dual listed company structure, comprising Mondi Limited, a South African incorporated company holding Mondi's African assets, and Mondi plc a UK incorporated company holding Mondi's non African assets.
An Extraordinary General Meeting of Anglo American to approve the Demerger is scheduled for June 25th 2007 and the Court hearing to approve the related capital reduction is scheduled for July 2nd 2007. If the Demerger is approved by Anglo American shareholders and the capital reduction approved by the Court, the ordinary shares in Mondi plc are expected to be admitted to the Official List of the Financial Services Authority and to trading on the London Stock Exchange and admitted by way of secondary listing to the JSE Limited and the ordinary shares in Mondi Limited are expected to be admitted to the JSE on July 3rd 2007.
Ms Cynthia Carroll CEO of Anglo American said "The Demerger of Mondi represents a major milestone in delivering Anglo American's restructuring program in becoming a focused global mining company. Mondi has been successfully built into a leading paper and packaging group and is today well positioned to compete on a global basis. I am grateful for the support shown by Mondi management and employees during this transaction and look forward to following the development of the Mondi Group going forward."
Mr David Hathorn CEO of Mondi said The Demerger will be a big step forward for Mondi. Being part of Anglo American has served us well, but the time is right for Mondi to become independent. We believe that being a separately listed Group will create new opportunities and give us added flexibility to take Mondi forward into the next phase of its development.
Mechel Service opens warehouse at Izhevsk
Mechel OAO announced that the Kazan Branch of its subsidiary Mechel Service OOO has expanded its network with the opening of a new remote warehouse for metal product storage and transshipment in Izhevsk. The opening of the new warehouse in the capital of the Republic of Udmurtia will permit Mechel to increase its warehouse sales significantly reduce logistic costs in product transportation and expand its market presence in the Republic of Udmurtia and the neighboring regions.
The nominal storage capacity for the warehouse depending on the product type and storage method is 5,000 tonnes minimum and its transshipment capacity is 500 tonnes per day. The facility will primarily be used to store rebars from the Company's Chelyabinsk Metallurgical Plant. The warehouse will also receive metal products from other Mechel's subsidiaries Izhstal OAO and the Company's Beloretsk Metallurgical Plant.
Mr Andrey Ponomarev General Director of Mechel Service OOO commented that "We are developing Mechel Service by both increasing its sales through existing subdivisions and opening new subdivisions, thus expanding its sales geographically. Mechel Service also plans to increase sales through product line expansion initiatives. With a developed network of subdivisions and significant stock in storage, Mechel Service is capable of directly meeting the demands of metal product end users."
Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.
Sumitomo to develop steel pipe supply chain in Azerbaijan
It is reported that Sumitomo Corporation plans to develop Supply Chain Management at Baku in Azerbaijan. As per report this SCM is 12th in the world following Sakhalin 2 project in fiscal 2006 at the ended of March 2007.
Sumitomo Corp will conclude long term contract with BP, Oil Major for 5 years and supply high grade oil well tubular at 30,000 tonnes per year and local service under technology support of Sumitomo Metal Industries.
Sumitomo Corp already builds up SCM with BP in England, Norway and USA which will enhance partnership with BP by this contract in Azerbaijan.
Nautilus orders for ship for deep sea mineral search
CP reported that Vancouver based Nautilus Minerals is a step closer to its goal of starting a gold rush in the deep blue sea. Nautilus Minerals said that it is on track to launch its deep sea copper and gold mining project in the waters off Papua New Guinea in 2009 with the signing of a shipbuilding contract recently.
Nautilus said that Belgium based Jan De Nul Group, one of the world's leading dredging companies, has signed a contract with the Spanish company La Naval for the construction of Jules Verne. The shipyard aims to begin steel fabrication in November 2007 and it is expected the ship will be completed in the third quarter of 2009.
The 191 meter vessel will be used for Nautilus's Solwara 1 project. The shipyard will fit the vessel with specialist subsea mining equipment and the associated handling systems that are needed to recover ore material from a water depth of up to 1,700 meters.
Mr David Heydon CEO of Nautilus in an interview said that the USD 120 million mining ship will be built at Jan De Nul's own cost and will be constructed in Spain. Mr Heydon said "The ship is the longest lead time item to put us towards production. It is the biggest piece of equipment necessary to put all this together. It is a major step forward towards actually getting deep sea mining underway.
The four largest shareholders of Nautilus are resource companies Anglo American, Teck Cominco, Epion and Barrick Gold. International interest in mining the ocean floor is growing due to the sharp rise in base metal prices, including copper, zinc and nickel, due to strong global demand from emerging countries including China.
Cape Lambert creates new subsidiary for non iron ore assets
Iron ore exploration and development company Cape Lambert Iron Ore Limited has incorporated a 100% owned subsidiary, Global Iron Ltd, and proposes to transfer all of its iron ore assets, excluding the Cape Lambert Iron Project in Western Australia, to this company in exchange for shares in Global.
Cape Lambert intends to spin this company out into a new ASX listed entity and distribute its shareholding in Global to the CFE shareholders. It is expected that following the proposed spin out, Cape Lambert shareholders will hold approximately 20% of Global by way of an in specie distribution by Cape Lambert of the shares it holds in Global. The in specie distribution is subject to shareholder approval, Global completing a capital raising of AUD 2.5 million and receiving conditional approval to list on ASX.
Global has been created so as to allow the management of Cape Lambert to concentrate on developing its project in the Pilbara region of Western Australia and allow the other projects to be developed in a timely manner. The board of CFE believes the other iron ore assets held by Cape Lambert are not valued correctly under the current structure and this new spin out will provide these assets with their own identity and allow a different management team to develop them.
Evraz's Nizhniy Tagil to supply rails to Turkey
It is reported Evraz Groups Metallurgical Industrial Complex of Nizhniy Tagil produced its first set of rails for Turkish State Railways. Out of 4,000 tonnes of rail order part has already been shipped to Turkey and second shipment is likely to be made in mid June.
As per report, Metallurgical Industrial Complex of Nizhniy Tagil is currently negotiating for more supplies in the next two years.
Yunnan Tin to acquire 5% of Australian Metallica Minerals
Chinas Yunnan Tin Group announced that its wholly owned Australian subsidiary has executed a share subscription agreement with Metallica Minerals Ltd to acquire 5% of the company. It plans to subscribe for 5.38 million Metallica shares at AUD 1.1 per share which is subject to regulatory approvals being obtained within two months.
Each party has the right to extend this by a further month while Yunnan Tin will have the right to participate in any share placements made by Metallica within the next 18 months.
Metallica is an emerging resources company with tenements in the state of Queensland focusing on deposits of nickel-cobalt ores, coal, bauxite, scandium, limestone and gold.
CNY 150 billion to be invested at Caofeidian by 2010
A senior official from Caofeidian industrial area disclosed that by May 2007 over CNY 20 billion has already been invested in the development and construction of the area. And the total investment is expected to exceed CNY 30 billion by the end of 2007. By 2010 investment in the area will add up to some CNY 150 billion.
The official added that by now the 250,000 tonnes iron ore terminal has been put into operation. The infrastructure for Shougang's relocation is under smooth construction. The official said that 23 projects there started construction this year with fixed asset investment of CNY 3 billion accounting for 10% of the total planned investment.
It is known that Shougang Jingtang Iron & Steel Company will come on stream next November 2007.
(Sourced from MySteel.net)
Praxair China commissions ASU for Guangzhou Lianzhong SS Corp
YIEH reported that Praxair China has commissioned a new air separation plant for Guangzhou Lianzhong Stainless Steel Corp in Guangzhou China. The plant will have daily output of 400 tonnes.
Praxair's new plant, located in Guangzhou Economic and Technology Development Zone, will supply oxygen, nitrogen and argon to Lianzhong through pipeline. The facility will also provide a supply of merchant liquid products to other customers in the region.
Lianzhong will produce 800,000 tons of stainless steel slabs and HR coil to meet the growing demands in the domestic market.
China's investment in nonferrous in 4 months up by 48% YoY
Interfax citing a roundup report recently released by the National Development and Reform Commission reported that China's investment in nonferrous metals industry fixed assets, excluding independent gold enterprises reached CNY 29.38 billion (USD 3.84 billion) up by 48.39% YoY as compared to January to April 2006.
The released said that investment in nonferrous mining from January to April amounted to CNY 5.03 billion (USD 657.62 million) up by 49.64% YoY as compared January to April 2006. Investment in copper mining boosted 108.29% to CNY 1.18 billion (USD 154.27 million) and investment in lead and zinc mining expanded 84.9% to CNY 1.41 billion (USD 184.34 million).
NDRC said investment in the nonferrous smelting sector increased 49.91% YoY to CNY 15.77 billion (USD 2.06 billion) during January to April 2007. Investment in electrolytic aluminum and alumina smelting shot up by 36.16% to CNY 7.03 billion (USD 919.10 million), investment in copper smelting up by 43.79% to CNY 2.63 billion (USD 343.84 million) and investment in lead and zinc smelting up by 59.42% to CNY 1.87 billion (USD 244.48 million).
Investment in nonferrous processing reached CNY 8.58 billion (USD 1.12 billion) January to April up by 45.38% from January to April 2006. Investment in copper and aluminum processing posted a similar result up by 48.06% to CNY 5.86 billion (USD 766.13 million).
According to the NDRC report nonferrous industry investment growth rates have gradually declined over the first four months of this year when compared to the growth rates for the previous year. However, investment is still considered to be excessive especially in new nonferrous projects.
Domestic capacity is increasing at a rate that cannot be sustained through domestic demand alone. It is therefore questionable whether recent tax policies, aimed at restricting export growth, are realistic measures to address trade imbalances when the underlying industries being targeted have become reliant upon the export markets for sustainability.
Consolidated Mining offers to purchase Hidalgo Mining
Hidalgo Mining International announced that it has received a formal offer from Consolidated Mining & Mineral to purchase all the outstanding and issued stock of Hidalgo Mining for a consolidated purchase price of USD 2.15 per share and that Hidalgo Minings board of directors has entered negotiations with Consolidated Mining & Mineral to discuss the finalization of its offer.
As per report, if Hidalgo Minings board of director accepts the described offer, Consolidated Mining & Mineral will immediately own the mining rights to the Northern Mexico Coal Property which encompasses nearly 300 million tons of discovered and tested coal. The offer submitted by Consolidated Mining & Mineral will provide tremendous cash purchasing ability as the offer is based on the total value of the existing mining rights which presently encompasses over 300 million tons of coal.
Mr Jeff Bootes CEO of Hidalgo Mining International said that HMIT has convened its board to discuss all the appropriate details of the CMM offer. Through our vast knowledge about the industry and that of our coal property, we feel that we can reach a conclusion in a timely matter. HMIT will release additional news updating our shareholders of the progress in this proposed acquisition.
Mr Mark Klok CEO of Consolidated Mining and Minerals said that Seeking out organizations like Hidalgo is exactly what we are in business to do. Its Northern Mexico property is currently sitting on over 300M tons of coal assets. We are in the business to acquire organizations that hold rights to or own large properties with minable minerals such as coal. With our expertise and wherewithal to immediately institute mining which will produce large amounts of coal production, we are able to re-capture our costs in an expedited time frame. We are excited about the possibility of acquiring Hidalgo and hope that our negotiations will result in a satisfactory conclusion for both companies.
Hidalgo Mining International an innovative coal mining company located in New York currently possesses over 50,000 acres of coal populated land located in Northern Mexico.
Mittal Steel Temirtau transfers distribution center to Kryvy Rih
Ukrainian Journal Staff Reported that Mittal Steel Temirtau in early 2007 transferred its distribution center for Ukrainian rolled steel consumers from Moscow to Mittal Steel Kryviy Rih in Dnipropetrovsk region. The expert said that due to this transfer, sales of rolled steel produced at Mittal Steel Temirtau would grow in Ukraine.
The move was reported by a speaker at the fifth annual conference on the flat products and pipe market held in Alushta on May 29th and May 30th, which was organized by Metall-Kurier Agency and Business-Forum Company.
AK Tube LLC honored with "Safety Award of Merit"
It is reported that AK Steel’s Indiana based plant AK Tube LLC has received the "Safety Award of Merit" from the Fabricators & Manufacturers Association for its 2006 safety performance. The award has been given for it's commitment to providing a safe work environment for its employees.
As per a report published by the US Bureau of Labor Statistics the Columbus plant's illness and injury incidence rate of 1.48 for 2006 was more than 5 times better than the pipe and tube industry average rate of 8.3. Also during 2006, the Columbus plant was approved for participation as a star site in the Indiana Department of Labor's Voluntary Protection Program.
Mr James L Wainscott chairman, president & CEO of AK Steel said that "Congratulations to our AK Tube Columbus, Indiana employees for their outstanding 2006 safety performance. Safety is always our company's highest priority and it is an honor to be recognized for that commitment."
AK Tube LLC, with facilities in Columbus, Indiana and Walbridge, Ohio, manufactures electric resistance welded carbon and stainless steel tubing for a variety of applications, primarily in the automotive and truck exhaust markets.
Illinois based FMA is the leading educational association serving the metal forming and fabricating industry with more than 1,900 members.
Cleveland Cliff appoint Mr William as VP business development
Cleveland Cliffs Inc has announced the appointment of Mr William C Boor as senior vice president business development effective May 21st 2007, with responsibilities for identifying and leading initiatives to support the growth of the Company.
Mr Boor 41 joins Cliffs having served as executive VP strategy and development at American Gypsum Company a subsidiary of Eagle Materials Inc. Previously he was responsible for strategy and investor relations as part of the senior management team that led the successful spin off of Eagle Materials from Centex Corp. He also has held key leadership roles at Weyerhaeuser Co and Procter & Gamble Co and brings diverse experience in manufacturing management, process engineering financial management investor relations and marketing to his new role.
Mr Joseph A Carrabba president and CEO of Cleveland-Cliffs commented that "Bill's broadbased technical and management expertise will serve our company well as we accelerate our growth initiatives. We feel he is an excellent addition to our management team and wholeheartedly welcome him to the Cliffs family."
