June, 03 2007
TATA Corus integration moving faster - Mr Muthuraman
Bloomberg, citing Mr B Muthuraman MD of TATA Steel, reported that TATA Steel's integration of Corus group is proceeding more quickly than the company had expected and may yield greater savings than planned.
The report cites Mr Muthuraman in an interview at the St Gallen Symposium in St Gallen in Switzerland as saying that "Things are happening faster than I had expected. The chemistry between the companies is very good".
India’s trade deficit in April 2007 up by 79% YoY
India’s merchandise exports during April 2007 are valued at USD 10.575 billion up by 23.06% YoY than the level of USD 8.593 billion during April, 2006. In rupee terms, the exports were INR 44572.18 crores which is 15.39% YoY higher than the value of exports during April 2006.
India’s merchandise imports during April 2007 are valued at USD 17.635 billion representing an increase of 40.69% YoY over the level of imports valued at USD 12.534 billion in April 2006. In Rupee terms, the imports increased by 31.93% YoY.
The trade deficit for April 2007 is estimated at USD 7.060 billion which up by 79% YoY as compared to the deficit at USD 3.941 billion during April, 2006.
RINL inaugurates new computerized production center
Rashtriya Ispat Nigam Limited has inaugurated a prestigious computerization project, “Production Centre”, in Plant Control on May 31st 2007.
In the Production Centre, the online production data of Blast Furnace-1, Blast Furnace -2, Steel Melting Shop and Wire Rod Mill are shown simultaneously on four big screens, with easily understandable graphical displays.
Mr PK Bishnoi CMD of RINL while inaugurating the center commended IT department and PPM department for their efforts in bringing this project into a success. He also asked IT department to explore the possibilities to extend same facility for other production units.
Mr PVS Prasada Rao ED (W) inaugurated the sub systems of Production Centre and expressed that this will improve communication and enable real time decisions.
HZL raises zinc price by 1.5%
India’s top zinc producer Hindustan Zinc Ltd announced that it has increased zinc prices by 1.5% to INR 168,800 (USD 4,168) a tonne.
HZL’s lead prices were also raised by 2.4% to INR 104,800 per tonne.
Agitation hits coal mining and transportation in Talcher
UNI reported that transportation of coal from Talcher came to a grinding halt and production in four out of six mega coal mines of Talcher coalfield were paralyzed following agitations by affected villagers.
As per report, the land losers of Zillinda, Kandhal and Solod affected by Ananta and Bhubaneswari mines stopped Ananata, Jagananath and Bhubaneswari open cast mines and close down the concerned project officers' offices demanding the promised job to the oustees by Mahanadi Coalfield Limited. The villagers alleged that MCL authorities did not meet their commitments to provide 80 jobs to them till date forcing them to go for strike.
Similarly the land oustees of Kandhal marched to Lingaraj mine linked to NTPC-kaniha and stopped the output protesting the non-availability of employment to them as promised by Lingaraj authorities.
Coal transportation from Hngula and Balaram mines had been hit for the last four days due to the road blockade by Soloda villagers demanding jobs.
Coal authorities estimated a loss of more than 80000 tonne of coal per day due to the closure of four mines. Every day at least 22 coal rakes moved out of Talcher carrying coal for power stations across the South India and Orissa.
Kerala to set up 1000MW coal based power plant in Orissa
It is reported that Kerala government is planning to set up an INR 4,000 crore coal based 1000MW power plant in Orissa and may soon sign a MoU with Coal India Limited and Orissa government for the propose.
Kerala State Electricity Board is getting allotment of coal for captive power generation from the Baitarani coal block in Orissa for generating 1,000 MW power annually for 25 years.
Orissa is expected to get 12% of the power produced in the proposed power station. Power Grid Corporation of India's East South Inter connector-II HVDC Bipole Transmission System will be connected for transmitting the power to Kerala grid.
L&T announce CAPEX of INR 2,500 crore in 2007-08
India’s heavy engineering giant Larsen & Toubro has announced that power would be a major thrust area for the company this fiscal and plans to spend about INR 2,500 crore as capital expenditure this year.
Mr AM Naik CMD of L&T said that “India is a power deficit country and keeping that in view, L&T would be concentrating on power.” He added that L&T's power business is to the tune of INR 800 crore to INR 1,000 crore and it may go up to INR 4,000 crore in the next 4 to 5 years.
L&T is planning to set up super critical boilers and super critical turbines plants in the country to generate power and has tied up with Japan’s Mitsubishi and formed a JV company for the purpose and is reported to have short listed 2 locations for building the factory.
L&T is also planning to set up a new ship yard for constructing bigger vessels of 200,000 dead weight tonne. The capital investment for the project is estimated to be around INR 2,000 crore. The company is also gearing up to tap the potential in railways. It has formed a team to work out its strategy in the sector, where it provides a gamut of services, ranging from electrification to signaling.
HPCL seeks legal view on change in funding by Mittal Investments
It is reported that Hindustan Petroleum Corporation Limited is seeking legal opinion on change in investment routing for picking up 49% stake in the INR 17,983 crore Bhatinda refinery project by Singapore -incorporated Mittal Energy Investment Pte Ltd instead of earlier agreed Luxembourg based holding firm Mittal Investments.
As per report the objection is on the grounds that the agreement’s governing law was the Indian law and that the project was based in India. The joint venture agreement and the parent guarantee executed by Mittal Investment Sarl for its subsidiary Mittal Energy Investment on May 8th 2007 provide the seat of arbitration as Singapore and dispute resolution in accordance with arbitration rules of International Chamber of Commerce.
As per reports, besides having a strong legal and regulatory framework and double tax avoidance treaty, Singapore allows free flow of capital and cross border transfer of Singapore dollars and this may be the primary reason for Mittal Investment to change the investment route.
BHEL order book on March 31st crosses INR 55,000 crore
India’s leading electrical equipment maker Bharat Heavy Electricals Ltd has announced that its order book has stood at INR 55,000 crore (USD 13.6 billion) as on March 31st 2007.
RITES to conduct feasibility on rail link for Vizhinjam terminal
Kerala government has appointed leading engineering consultant Rail India Technical and Economic Service Ltd to conduct feasibility studies on developing road rail links to the proposed Vizhinjam International container Transshipment Terminal in the state.
The feasibility study is expected to be completed by October 2007.
The state government expects the tender awarding process for the purpose to be completed by December 2007.
Kapil Mohan to set up 2 hydro electric power projects in Himachal
Himachal Pradesh Energy Development Agency has awarded 2 mini hydro electric power projects to Kapil Mohan & Associates Hydro Power Pvt Ltd. Kapil Mohan will build a 5 MW power project in Chamba and another 4 MW project in Kullu. Work on both the project is scheduled to begin within a year and is expected to be completed within 2 years.
Kapil Mohan had appointed a Shimla based Sai Engineering Foundation for preparing DPR and the same has been completed however it has not yet applied for environment clearance for both the projects and the company plans do the same shortly. The company will be finalizing the main equipment supplier in the next 4 to 5 months and hopes to sign the power purchase agreement within the next 6 months.
22 SEZs granted formal approval
It is reported that the Board of Approval for special economic zones has granted 22 formal approvals including the high profile Gopalpur SEZ multi product promoted by the TATAs in Orissa. The board also gave 6 in principle approvals but deferred a decision on the Navi Mumbai SEZ promoted by Mr Mukesh Ambani on points raised by the representative of the revenue department.
The list of SEZ for which formal approvals is granted includes
1. IT/ITES SEZ by Technopark in Tamil Nadu
2. IT/ITES SEZ by Genpact (India) in Andhra Pradesh
3. IT/ITES SEZ by Shivaji Marg Properties in Delhi
4. Biotech SEZ by Gujarat Industrial Development Corporation in Vadodara
5. Gems and Jewellery SEZ by Shripur Gold Refinery at Dhulia in Maharashtra
6. Three SEZs for textiles, leather and engineering goods by Uttar Pradesh State Industrial Development Corporation at Kanpur in UP
In principle approvals includes
1. SRM Infrastructure in Alwar for multi product SEZ
2. Muti services SEZ by Society for Innovative Education and Development at Alwar
3. A Carpet and Handicraft SEZ by UPSIDC in Bhadohi in UP
4. IT/ITES SEZ by Writers & Publishers in Chindwara in Madhya Pradesh
5. Chennai Business Park in Kanchipuram district for IT/ITES/BPO and Electronics industries.
So far, 111 SEZs have been notified and 41 are in the process of being notified. In the zones notified up till now, INR 35,000 crore has been invested and 32,578 direct employments to people have been created.
Recyclers see strong demand of steel scarp in 2007
Recycling Today reported that during the Bureau of International Recycling’s spring meeting, Mr Christian Rubach, president of BIR’s Ferrous Division, as well as the head of Germany’s Interseroh Hansa Recycling GmbH noted that the positive market last year should continue through 2007. Mr Rubach believes that International Iron and Steel Institute forecast for 2007 at 5.9% are at the low end. He said "World crude steel production has shown an increase of 10.2% in the 2007 first quarter compared to the same period in 2006. Nearly all major steel producing countries showed strong increases; only the United States had a weaker production."
Mr Rubach added that “Further growth in scrap demand would be underpinned in part by strong investments in electric arc furnace capacity expansions on nearly all continents especially in Russia, the Middle East and Turkey but also in old economies like Germany."
Mr Anton van Genuchten divisional VP of TSR GmbH & Co KG in his report on the European market said that EU-25 steelworks had consumed about 107 million tonnes of steel scrap in 2006 as compared to 101 million tonnes in 2005. He added that EU-25 steel scrap exports also scaled new heights up by 9.1% YoY to 10.1 million tonnes. Turkey strengthened its position as the EU’s leading customer in increasing its order levels by almost 60% to more than 4.8 million tonnes.
Mr Denis Ilatovskiy of Russia’s Mair Joint Stock Co reported that Russian domestic scrap consumption increased by 25% in the first four months of 2007 due to introduction of 12 million to 15 million tonnes of new EAF capacity. He said that Russian scrap collection has improved by 20% over the same period owing to relatively mild winter weather, which led to a small increase in exports although the trend was deemed unlikely to continue in the coming months. Mr Ilatovskiy added that Ukrainian steel scrap collection is expected to increase slightly to 8 million metric tons in 2007 although the export proportion would be negligible.
Mr Jeremy Sutcliffe divisional VP of Sims Group while reporting on the US market said that a combination of factors had created the distorted appearance that scrap is in surplus and readily available from many sources. He expected firming scrap prices given that the world may consume up to 20 million tonnes more purchased scrap this year". He added "Buyers should view the present market as a brief buying opportunity."
China to export 60 million tonnes of steel in 2007 - IISI
According to International Iron and Steel Institute, China the world's largest steel producer and consumer may export as much as 60 million tonnes of the steel in 2007.
Mr Ian Christmas secretary general of the International Iron and Steel Institute at the 20th Brazil Steel Summit in Sao Paulo said that “There is a risk that the Chinese steel industry has over expanded but there is no crisis because production and demand are both growing.''
Brazil’s steel exports in 2007 to increase by 7.4% YoY
BNamericas citing Mr Luiz André Rico Vicente former president of IBS reported that Brazilian steel exports could expand by 7.4% YoY to 13.5 million tonnes in 2007 despite strong domestic demand.
Mr Vicente during a press conference in São Paulo part of the 20th Brazilian steel industry congress promoted by IBS told journalists that exports will rise as many expansion projects due to kick off in 2007 are focused on shipments abroad, such as the capacity increase at CST to 7.5 million tonnes per year from 5 million tonnes per year and the boost at Gerdau's Açominas mill to 4.5 million tonnes per year from 3 million tonnes per year.
Mr Vicente added that "Steelmakers have many sales commitments for exports, which are not being fully honored. Mr Vicente said that some clients from abroad are complaining about the shift in the sales strategy of local steelmakers to favor domestic sales as the priority is to meet the demands of the Brazilian market.
According to new IBS estimates, steel sales to the Brazilian market are expected to total 19.3 million tonnes in 2007 up by 10% from 17.5 million tonnes in 2006, while crude steel production is expected to hit some 35 million tonnes up by 13.2% YoY as compared to 30.9 million tonnes in 2006.
Galvanizers reduce zinc usage due to high prices
It is reported that high zinc prices, which can take up as much as 35% of galvanized steel production costs, are forcing galvanizers to find ways to reduce their usage of zinc. Mr Heather Griffiths lead strategist at Corus on the sidelines of a Metal Bulletin zinc conference this week said that “As the zinc price grows the impact on galvanized steel production costs rise. Zinc takes up roughly 35% of production costs when London Metal Exchange zinc prices are above USD 4,500 per tonne.”
He said that “In response to the high zinc price, galvanizers are optimizing current processes to reduce zinc usage, lowering coating weights, and switching to less zinc intensive coatings such as Galvalume.”
Mr Griffith said that in the construction and transportation sectors, which account for roughly 70% of galvanized steel demand or roughly 15 million tonnes, galvanized steel is seeing some threats from substitution. He said that the substitution threat for galvanized steel in construction segment is real with post painted steel, concrete and timber vying for market share and in the transportation sector, galvanized steel is seeing threats from plastics and aluminum.
Mr Griffith said that global demand growth in galvanized steel is expected to increase roughly 12% from 2007 to 2010. He said that “Although zinc prices are expected to decrease to 2010, the possibility of supply disruptions raise many questions. The speculation and uncertainty of the market means galvanizers are being more cautious.”
Mr Griffth said that Corus consumes roughly 120,000 tonnes of zinc per year and in order to deal with the cost pressure, Corus has to hedge its zinc exposure on the market. He said "We want to be galvanizing, but we need a balance as zinc prices are so high.”
OneSteel eyes fourth iron ore supply deal
Australian steelmaker OneSteel Ltd was recently reported to be in talks for another long term iron ore supply deal continue.
Mr Geoff Plummer CEO of OneSteel said that talks were continuing for a fourth long term iron ore sale deal with a party from North Asia, after the two sale contracts already announced this year. He said that "We are in discussions, trying to finalize one more long term contract."
OneSteel’s previous 3 iron ore sale deals to date have been with Chinese steelmakers. The first deal is with Rizhao Steel for 6 million tonnes over 10 years and the second deal is also for 6 million tonnes over 10 years with Shanxi Haixin Iron & Steel Group Co Ltd. The third deal is with Hebei Jinxi Iron & Steel Co Ltd for 5 million tonnes over 10 years.
OneSteel's USD 385 million Project Magnet is a plan to convert its Whyalla Steelworks in South Australia to produce steel from magnetite rather than hematite iron ore, freeing up 40 million tonnes of hematite lump and fine ore for sale over 10 years.
Gulf Steel to increase capacity by over 250%
UAE's leading private sector steel manufacturer Gulf Steel Industries Company announced that through a new project it will add 400,000 tonnes per annum to its existing steel manufacturing capacity. The plant is expected to be fully operational in the last quarter of 2008
Gulf Steel's investment will see the establishment of a new steel rolling mill at Musaffah ICAD II in the Industrial City of Abu Dhabi. The facility which will take up an area of 55,000 square meters will bring the company's manufacturing capacity to 550,000 tonnes per annum from 150,000 tonnes per annum currently. Gulf Steel's new facility is being set up in technical collaboration with Italy's Siemens VAI Metals Technologies SRL.
Mr Abdulla Nasser Hawaileel Al Mansoori chairman of ANIE said “Our investment in this manufacturing plant showcases ANIE's ongoing commitment to play a supporting role in building a strong industrial base in Abu Dhabi. We are pleased to contribute to the economic diversification program of the UAE in line with the government's strategic vision for the emirate.”
Gulf Steel is a subsidiary of Al-Nasser Industrial Enterprises LLC based in Abu Dhabi. In November of 2006, ANIE also announced the ground breaking of two other manufacturing plants with a combined capacity of 600,000 tonnes per annum at the ICAD 1 in Musaffah. The establishment of the DRI and billet plants last year represented a major move for backward integration.
Proposal for coal loading at Mackay dismissed
It is reported that Mr Tim Mulherin the state Primary Industries Minister is vehemently opposing an idea mooted by coal exporters and clearly said that there is no need for the Mackay Seaport in central Queensland to become a bulk coal terminal.
Mr Mulherin denied that there is any need for a short term solution by saying that current work and the missing rail link between Newlands and Moranbah mines will provide an outlet option for suppliers. He said "I don't see the Mackay Seaport as being a coal port the coal ports are Abbott Point Hay Point and Dalrymple Bay. I believe the investment we've put in rolling stock where we'll increase the capacity to 208 million tonnes and the commitment by industry to the missing rail link will address the long term port handling issues with coal."
Mr Mulherin said that his government has already allocated more than USD 520 million to improve rail infrastructure. He said "That will see the purchase of 20 new electric locomotives 15 new 400 class diesel electric locomotives, upgrading of 17 older diesel electric locomotives in addition acquiring 870 new coal wagons. When that procurement project is over we will have a rolling stock capacity of 208 million tonnes per annum."
A proposal to export coal from Mackay harbor is under investigation as mining companies lobby for alternative routes to ship coal overseas faster. The head of Foxleigh Mining earlier this week suggested using the Mackay Port to ease bottle necks at the Dalrymple Bay Coal Terminal, south of Mackay. Senior analysts at the Mackay Port Authority will undertake a detailed risk assessment of railing coal through the northern suburbs.
Territory Iron to start iron ore shipments in July
It is reported that Australia’s Northern Territory is to become an iron ore exporter again with the first shipment through Darwin by Territory Iron due later this year. The second coming for iron ore deposits in the Frances Creek region of Australia's Northern Territory is set to reach a milestone through the rail transport to the port of Darwin in July of the first ore shipment by Territory Iron Ltd.
A recent presentation by the company said that port facilities in Darwin are now well advanced and the first shipment to Asian markets, including China, would be made in September at the annualized rate of 1.5 million tonnes per annum.
The project is accelerated by the entry of Hong Kong based commodity house Noble Metals as a major shareholder in association with its Perth based associates in Crawley Investments. To help put the NT back into the iron ore business the NT Government is funding the cost of conveyors in Darwin Harbor for the export drive.
Frances Creek which was the Territory's only major iron ore producer, first operated between 1967 and 1994. The initial hematite ore resource is 9.7 million tonne grading 61% Fe.
Ohio governor stands up for Wheeling Pittsburg
Governor Ted Strickland at the United Steelworkers Local 1190 meeting last week said that Ohio cannot give up on manufacturing and the steel industry. He said “The steel industry in this nation must be preserved and strengthened. It’s not just a matter of jobs, but a matter of national security. I am not going to give up on manufacturing in Ohio.”
He presented a USD 3.26 million check to the USW and Wheeling-Pittsburgh Steel Corp for worker training. He noted the grant, part of discretionary worker retraining funds that the governor may award, is hoped to provide Wheeling-Pittsburgh Steel with resources to enable it to become competitive in a competitive industry for the benefit of the workers, the company and the community.
He said Wheeling-Pitt reaches beyond Ohio and touches the lives of hundreds of families, small business and communities through its tax payments. He said “We want this company to be successful.”
Mr Jim Bouchard chairman of Wheeling-Pitt explained the grant is being used to train workers to meet the needs of the steelmaker, especially as it prepares to install an automated process system called programmable logic controllers for its steel shops. The PLC automation system is being manufactured by General Electric in Ohio and is on order. It represents an investment of more than USD 2 million by Wheeling-Pitt.
Philipine to develope 65 abandoned mines
It is reported that Philippine government may jointly develop with investors or sell the mining rights to more than 65 abandoned mines.
Mr Horacio Ramos director of Mines and Geosciences Bureau of Philippines in a phone interview in Manila recently said that Philippine Mining Development Corp may be able to generate revenue by bidding out these cancelled mining rights." He said "The government can also opt to develop these projects with the private sector through state run Natural Resources and Mining Development Corp.”
Mr Angelo Reyes secretary of Environmental and Natural Resources said that the mining rights to more than 65 abandoned mines with a combined land area of 68,625 hectare were transferred to Philippine Mining Development Corp the corporate arm of the Department of Environment and Natural Resources. Mr Reyes said in a statement that the cancellation of the mining permits for abandoned mines will enable the entry of more serious investors thus further spurring development and economic activity in the mining sector."
Xstrata’s bid for Gloucester Coal deemed reasonable
Xstrata Coal's USD 391 million bids for Gloucester Coal have been deemed reasonable by an independent expert but it noted there was still room and time for a rival player to lodge a higher offer. Sources said any potential rival bidders were probably waiting to see the scheme booklet, released yesterday, before lodging an offer.
Independent expert Mr Grant Samuel said it valued Gloucester shares in a range between USD 4.22 and USD 4.89. Xstrata has offered USD 4.75 a share but Gloucester shares have traded above that price since the deal was announced in April.
Mr Samuel said that Gloucester is an attractive purchase for both coal producers and trading houses because its coal was good for blending with higher grade products to receive a better price. He said "Marketing strategies such as blending Gloucester's coal with Xstrata's coal could result in substantial pricing benefits for Xstrata.”
It is believed Gloucester's board chose to merge with Xstrata after turning down a preliminary approach from Hong Kong commodities trader Noble Group.
4 killed in iron ore mine collapse in Ukraine
It is reported that 4 Ukrainian miners were killed and one injured after part of an iron ore mine collapsed in Kyrvyi Rig city
Ukraine’s emergencies ministry said that the miners were dismantling drilling equipment at around 00:57 AM at some 1,180 meters below ground level when part of the roof gave way. One miner was taken out alive by rescue workers and others were found dead on Saturday morning.
Panzhihua may restructure assets
It is reported that China's Panzhihua Iron and Steel Group based in the southwestern province of Sichuan, China's 15th largest steel mill by output, is considering injecting its crude steel assets into a listed vanadium steel arm.
Panzhihua has been named by analysts as a likely focal point for China's ongoing consolidation of its steel industry. It has already absorbed some smaller mills in the region. Panzhihua Group is also the parent company of Chongqing Titanium and Sichuan Changcheng Special Steel. It does not currently plan to integrate those units into PZH Steel, the world's third largest vanadium steel producer.
Panzhihua Steel produced 6.77 million tonnes of crude steel in 2006
Jupiter Mines buys Mt Ida and Mt Hope iron ore licenses from Red Rock
Thomson Financial reported that Red Rock Resources PLC said that Jupiter Mines Ltd has exercised its option to acquire its Mt Ida and Mt Hope iron ore licenses in the Yilgarn region of Western Australia for AUD 250,000 in cash and AUD 1 million in shares. Red Rock will be entitled to a 1.5% royalty on production.
Red Rock said that it will retain its nearby Mt Alfred license but Jupiter will have the right to match the sale price for 30 months from the grant of the original options, should the company decide to sell its stake.
Russian deputy PM welcomes construction of wide plate mill at Vyksa
Mr Sergei Ivanov first deputy prime minister of Russian has said that the construction of the Stan-5000 mill at OMK’s Vyksa metallurgy plant is not only an economic development but also a boost to national prestige.
Mr Ivanov said at a ceremony marking the beginning of the Stan-5000 construction in Vyksa recently said that "Russia is implementing several transnational energy projects together with its foreign partners. It is important to us that our new generation pipes be used in these projects. This is not only an economic matter but also a matter of national prestige." He said that Russia possesses all necessary components for this including materials, technical equipment and specialists.
Mr Anatoly Sedykh chairman of Untied Metallurgy Company said at the ceremony that "Guaranteed shipments of high quality pipes for national pipeline projects will help Russia maintain independence in the energy sector.
It is perceived that Stan-5000 will enable Russia to substitute the imports of wide plates required for the pipe industry, the nuclear power industry, shipbuilding and the military industrial complex by 2010.
FinMetal and Magnus Mineral form nickel mining JV
It is reported that Finland’s FinMetal Mining Ltd has signed a MoU with Magnus Mineral Oy to set up a JV for exploring Enonkoski Nickel Belt and Halvala nickel mine.
As per report, Halvala mine contains 1.5% nickel, which is the first target of exploration. As to Enonkoski Nickel Belt, the report is to show that the reserve is lowly risky to develop. So far these nickel mines were not developed using high tech equipments.
Zinc Co Australia makes stunning market debut
It is reported that Zinc Co Australia Ltd has listed on the Australian share market at double its offer price. The listing follows an initial public offering of 25 million shares to raise AUD 5 million. With the money raised from the IPO it plans to start exploration and evaluation work on its properties
Zinc Co's shares started trading up 20 cents or 100% at 40 cents a share compared to its offer price of 20 cents a share. Zinc Co either owns or holds the right to earn a majority interest in five zinc projects in West Australia totaling around 560 square kilometers.
Zinc Co said the outlook for the galvanized steel ingredient was very strong helped by surging demand and price and there is a global supply deficit and higher demand is expected as China and India continue their development.
Russian Railway’s 2006 net profit up by 160% YoY
Russian Railways announced that its net profit calculated according to Russian Accounting Standards grew by 160% YOY in 2006 to 26.4 RUB billion (USD1 billion) mainly because of the re evaluation of subsidiaries' assets.
Mr Alexander Zhukov, deputy prime minister who heads the RZD board, praised the company for good performance in 2006.
Mr Fedor Andreyev a spokesman said that RZD will allocate 10% of the real money flow, or RUB 1.051 billion (USD 40.6 million) for dividends.
