Mr Oram joins anti POSCO movement opposing Khanddhar mines

Kalinga Times reported that Mr Jual Oram VP of Bharatiya Janata Party and member of parliament from Sundargarh in Orissa is now out to publicly oppose Orissa government's recommendation for grant of prospecting license for Khandadhar iron ore mines to POSCO India.

Mr Oram has joined a village to village that campaign “Save Khandadhar Campaign” organized under the banner of Khandadhar Surakhya Samiti in the Bonai sub division of Sundargarh district.

Mr Oram said that "I have started a village to village campaign to save the mighty waterfall of Khandadhar from getting destroyed by mining of iron ore. The Save Khandadhar campaign will continue till the state government decided not to hand over Khandadhar hill to POSCO India or any other company. During the course the campaign, meetings are being held in every village where people are taking the vow to protect Khandadhar at any cost." He added that along with a large number of members of the Samiti and local people has carried out the campaign in as many as 5 gram panchayats.

Mr Oram said that mining in Khandadhar hills spread over Sundargarh and Keonjhar districts will destroy the area's ecology and also affect the water and livelihood sources of the tribals living on its slopes. He has criticized the state government's decision to recommend to the Centre for grant of prospecting license for Khandadhar mines to POSCO to source iron ore for its proposed 12 million tonne steel plant.

TATA Steel AGM postponed to August 29th 2007

TATA Steel announced that it has rescheduled its Annual General Meeting to August 29th 2007 from July 18th 2007 fixed earlier.

A TATA Steel spokesman told PTI "Arising from a number of factors including delay in receiving approval from the union government and exempting the company from attaching the account of its subsidiaries in the annual account.”

He added that “Printing and dispatch of annual report to shareholders was also delayed as additional information had to be included since this was the centenary year of the company.”

KEC International wins two TLT projects in the MEA

KEC International Limited announced that it has bagged two contracts in Riyadh region of Saudi Arabia and Abu Dhabi of UAE valued at INR 176 crores in international bidding process.

The larger value contract comes from the Saudi Electricity Company based at Riyadh in Saudi Arabia and is worth USD 23.4 million (INR 95 crores). This work involves supply, erection, installation and commissioning of 380 KV transmission line comprising a total distance of 53 kilometers on the outskirts of Riyadh.

The Abu Dhabi project, worth USD 20 million (INR 81 crores) is from the Abu Dhabi Transmission and Despatch Company TRANSCO. This project involves the supply, erection, installation and commissioning of 40 kilometers of 400 KV transmission lines from Taweelah sub station to Yas Island and Bahia sub station to Yas Island.

Mr Ramesh Chandak MD of KEC International said "These are significant wins for us. Coming, as it does, immediately on the back of our largest single value contract worth INR 380 crore in Kazakhstan, is indeed a delight.”

JSW Steel ready to take over three ITI in Karnataka

It is reported that JSW Steel Limited has proposed to take over three ITIs in Kudligi, Vittalapur and Hospet for upgrading and improving technical skills at these institutions as part of its corporate social responsibility and has begun preliminary discussions with the government.

Mr Sajjan Jindal vice CMD of JSW Steel said that the main objective is to ensure that the young got the necessary training in highly skilled works that would get them suitable jobs and good salary.

Mr Sajjan Jindal said “My ambition is to ensure equitable growth and participation of all in the development. Along with our company, we want the people residing in the surrounding villages and also in the entire district to grow. Manufacturing steel is our profession and generating smiles is our passion.”

TATA Metaliks & WB government join to bid for coal blocks in Jharkhand

The Telegraph reported that TATA Steel’s subsidiary TATA Metaliks has joined hands with the West Bengal Mineral Development and Trading Corporation to bid for 2 coal blocks in Jharkhand.

After securing the allocation for coal block, West Bengal Mineral Development and Trading Corporation will supply coal to TATA Metalik’s pig iron plant at Kharagpur in West Bengal.

The two coal blocks in the West Bokaro district of Jharkhand are reserved under the state quota and will not be handed over to private companies, but West Bengal Mineral Development and Trading Corporation is likely to face competition from other state agencies.

Mr Jayshankar Tewari mine secretary of Jharkhand said that there was a lot of pressure on the state. He added that “We have 6 coal blocks and 300 applications pending. So you can imagine.”

Orissa opposition says no to SEZ for mineral based industries

SNS reported that Orissa state congress has demanded that no mineral based industry be given SEZ status and no agricultural land be spared for that purpose.

Mr Arun Dey a local MLA has blamed both the Prime Minister and the chief minister for pursing the kind of SEZ policy, which is detrimental to the interest of the nation. He alleged that a handful of industrialists are calling the shots and the disparity between the rich and the poor was growing pushing the people towards Naxalism as had been noted even by the minister of state for home.

Mr Niranjan Patnaik state congress leader wondered whether India needed 500 SEZs, and if so, what would be the fate of agricultural production. He added that “We are already importing wheat. While SEZs are welcome in the engineering, textile and other sectors, there is no reason why we should provide the same to the mineral-based units when we are giving them captive mines.”

Pressing for a commitment on these lines, the opposition cornered the ruling BJD BJP combine in the assembly and staged a walkout when Mr Biswabhusan Harichandan state industries minister said that “We will take into consideration the concern of the members.”

S&P assigns BB- for TATA Steel UK Ltd and B for Corus Group

Thomson Financial reported that TATA Steel’s subsidiary TATA Steel UK Ltd and the its new parent company Corus Group has been assigned 'BB-' long term and 'B' short term credit ratings with a positive outlook by Standard & Poors.

Mr Alex Herbert credit analyst of Standard & Poor's said that “The positive outlook on TATA Steel UK Ltd reflects the likelihood of a one notch upgrade should TATA Steel complete its planned longer term financing including proposed hybrid securities and new equity. We do not, however, expect material enhancements to its operations, despite new ownership by TATA Steel, which will limit further upside potential and in addition, much higher leverage will act as a constraining factor in coming years.”

Standard & Poors in a statement said that it has also assigned its 'BB' senior secured debt rating and a recovery rating of '2' to the GBP 3.67 billion senior secured debt issued by TATA Steel UK Ltd and subsidiaries. At the same time, the long term corporate credit rating on Corus group was lowered to 'BB-' from 'BB'. It expected TATA Steel UK Ltd to continue to benefit from favorable steel prices and to improve its business profile.

Volume of coal sale through e auction to increase

It is reported that Indian government is considering an increase in the quantity of coal it sells through e auction.

A coal ministry spokesman said that "The coal ministry has almost finalized coal distribution policy and is likely to be notified shortly. Under the new coal distribution policy the government has plans to reduce long term links to the power sector from 100% to 90%. He added that the additional coal will be sold through e auctions and the ministry is planning to increase the quantity of coal being sold through e auction from the current level of 30 million tonnes to 50 million tonnes.

Coal India Ltd sells between 360 and 370 million tonnes of coal annually and the power plants get as high as 80% of the sales directly from CIL.

The new policy would also take steel and cement out of the core sectors, as the government no longer regulates them. The quantity of the coal sold through e auction would ultimately increase, as the minerals being sold to the steel and cements sectors would also be sold through e auction.

India government said that the electronic auction model has largely helped coal companies recover from huge losses. This has also resulted in substantial price realization for CIL over its notified prices.

20% second hand machinery may be allowed in SEZ units

BL quoted a top department of commerce official as saying that union commerce ministry has planned to relax existing restriction on use of second hand plant and machinery by SEZ units. Mr Yogendra Garg director of department of commerce at an Assocham meeting on SEZs said that “We will soon amend the SEZ rules to bring them in line with the IT law position.”

Earlier, the government had stipulated in the SEZ rules that second hand plant and machineries cannot be used by SEZ units. The commerce ministry now wants to relax this stipulation so as to remove the paradox between existing SEZ rules and the income tax law on the use of second hand plant and machinery. The intent is to allow use of second-hand plant and machinery to the level permitted in the income tax law.

After Budget 2007-08, the income tax law has been amended to specify that a SEZ unit would not lose tax breaks if the total value of used plant and machinery transferred to the unit does not exceed 20% of the total value of plant and machinery used in the business. This implies that a SEZ unit would get tax breaks if at least 80% of its investments in plant and machinery were out of fresh investments.

Orissa asks BHPB to include smelter in aluminum project

BS reported that after Orissa government has advise global mining giant BHP Billiton that it is not interested in any proposal for stand alone alumina refineries and will only consider projects that includes at least making aluminum ingots.

The report cites an official source as saying that the Orissa government has rejected BHPB’s proposal in its present form and has asked the company to come up with a fresh proposal containing more details on the project and also scope for further value addition to alumina within the state.

An official said that “When we are insisting that Aditya Aluminium, Vedanta and L & T Dubal set up aluminum smelters within the state before signing of MoU with them assuring raw material bauxite linkages, how can we agree to BHP’s proposal to only set up a alumina refinery without any scope for further value addition.”

BHP had proposed to set up a USD 3 billion dollar alumina refinery at Gopalpur in Ganjam district of Orissa however did not intend to set up an aluminum smelter to convert alumina into metal ingots on the ground that the process will be very costly in India as the cost of power a major input in smelting is very high.

CIL inks MoU with TPI for deploying independent monitors

PTI reported that Coal India Limited has signed a MoU with Transparency International India for deploying independent external monitors to oversee all contracts valued over a certain limit.

Mr PS Bhattacharya chairman of CIL said that there is an urgent need to usher in such transparency because of the targeted rapid growth in coal production from both opencast and underground mines.

He added that “Thrust on coal benefaction in the 10th Plan period will require the coal companies to go for large scale global procurement which will have to be decided expeditiously. Many tenders in the recent past have got delayed due to complaints and counter complaints. Independent external monitors drawn from a panel of eminent people of impeccable integrity and selected in consultation with Central Vigilance Commission will be appointed to oversee all contracts valued over a certain limit.”

Integrity Pact, the tool devised by Transparency International India is used worldwide to fight corruption in global contracting. The Integrity Pact will be signed by the bidders and CIL against each tender.

Jindal Waterways formed to boost river transportation

It is reported that a river transport company called Jindal Waterways Limited has been floated to acquire vessels to start inland water transport services as early as possible.

A spokesman for Jindal Waterways said that “We have mooted a proposal to the union shipping ministry for acquisition of the Kolkata based ailing Central Inland Water Transport Corporation and we will shortly visit Bangladesh to know if suitable vessels are available for sale.”

Mr P Tayal CMD of Central Inland Water Transport Corporation said that “Some of our vessels need immediate repair but we are helpless now as the captive facilities of Rajabagan Dockyard are no longer available to us. The government should decide fast on the Jindal proposal.” He added that senior officials of Jindal Waterways had met with him in this regard. However much would depend on the union government, as CIWTC is a public sector undertaking under the shipping ministry.

CIWTC’s assets comprise a riverside shed in the Kolkata Dock System and about 40 vessels, some of which, including three tanker barges, have been leased out to other river transport companies. A large number of other vessels are engaged in various operations, such as lighterage in the Hooghly and river services to Assam, undertaken by CIWTC itself. Central Inland Water Transport Corporation earlier had a shipbuilding and ship repairing yard known as Rajabagan Dockyard, which was acquired by Garden Reach Shipbuilders & Engineers in July 2006. CIWTC, which employs 463 people, transported about 200,000 tonnes of cargo in 2006-07.

JSEB purchasing power form grid to save money

Ranchi Express reported that Jharkhand State Electricity Board is purchasing more power from the central pool of the Eastern Grid these days instead of producing electricity from its coal fired plant at Patratu.

Mr VN Pandey chairman of Jharkhand State Electricity Board said that "The scheme is all about making the board more efficient on cash front." He added that it is more cost effective than producing power from the Patratu Thermal Power Station.

Allocation to the JSEB from the central pool is 222MW however the JSEB is drawing more than the allocation to cut down cost.

Jai Balaji’s WB based steel SEZ gets approval

Jai Balaji Sponge Ltd has recently announced that the board of approval for the special economic zone of government of India, in their meeting held on June 5th 2007, has granted in principle approval to the company for setting up a SEZ in steel in the state of West Bengal.

Indian coal import crosses 3.7 million mark in June 2007

As per preliminary data from Indian port, India has imported 3.731 million tonnes of coal in June 2007, out of which 1.739 million tonnes or 47% is coking coal while remaining 1.991 million tonnes or 53% is thermal coal.

The following tables show the details of origin of both types of coals
A) Thermal

(Volume in tonnes)

B) Coking

(Volume in tonnes)

Although coal imports took place at 15 ports, six major ports accounted for 80% of the imports

(Volume in tonnes)

In total, 43 importers were involved but top 10 importers accounted for almost 64% of total coal imports

(Volume in tonnes)

Readers may please note that these are based on inputs from various ports and are for gaining a broad idea as they may undergo change

BHPB forms new group management committee

BHP Billiton, following the appointment of Mr Marius Kloppers as its CEO effective from 1st October 2007, has announced that its new senior management team will be known as the Group Management Committee effective immediately.

The Group Management Committee will comprise of
1. Mr Chip Goodyear CEO to be succeeded by Mr Marius Kloppers on October 1st 2007
2. Mr Marius Kloppers group executive & CEO non ferrous until October 1st 2007
3. Mr Marcus Randolph group executive & CEO ferrous and coal
4. Mr J Michael Yeager group executive & CEO petroleum
5. Mr Alex Vanselow group executive & CFO
6. Mr Karen Wood group executive & CPO
7. Mr Alberto Calderon group executive & CCO

Mr Kloppers while commenting on the new team said that “Renewal and diversity, within a carefully planned executive development framework, have been hallmarks of our successful executive succession plan. This latest round of appointments continues our executive succession program and reinforces the strength of our management team.”

In addition to announcing the Group Management Committee, BHP Billiton announced other management changes.
1. Mr Graeme Hunt, currently president aluminum will assume the role of president of the newly created Uranium and Olympic Dam Development CSG.
2. The existing Olympic Dam operation as well as the expansion project will be separated from the Base Metals CSG and operated under Mr Hunt’s leadership
3. Mr Nelson Silva will replace Mr Hunt as president Aluminum
4. Mr Jane McAloon company secretary for BHP Billiton Limited will assume the role of group company secretary.

China's coal exports in June dip by 27.9% YoY

It is reported that China exported 3.82 million tonnes of coal in June 2007 down by 27.9% YoY while the amount of coal exported from January to June 2007 fell to 23.12 million tonnes, 8.96 million tons less than the same period last year.

The decline of exports in the first half of 2007 is mainly due to China's adjustment of its coal tariffs and its rising domestic demand. China has repeatedly tried to discourage coal exports in recent years. Last October, China canceled tax rebates for the export of coal and levied a 5% export tax on coal and coke products while temporarily reducing the coal import tariff from between 3% and 6% to 1%. In June, the import tariff rate was eliminated completely.

Mr Guo Guodong an analyst from Everbright Securities Company Limited said that “The decline in exports will continue, while imports will continue to increase.” Mr Gua added that such changes has resulted in a momentous change in the country's coal import-export balance as there was more coal imported than exported in the first quarter of this year. The drop in coal exports will influence the coal price in countries that import coal from China, including Japan.

Gulf Steel Industries orders for rebar mill

Siemens Metals Technologies announced that it received an order from Gulf Steel Industries Company Limited for the supply of new rebar mill, which will be built in Mussaffah Industrial Area of Abu Dhabi in UAE. The new line will produce approximately 400,000 tonnes of rebars and plain rounds per year. The project is scheduled to be commissioned by early 2009.

Under the contract Siemens will engineer and supply the mechanical equipment for rolling and handling. The rolling train will be equipped with 18 RedRing rolling stands 6 each in the roughing, intermediate and finishing sections of the line. These mill stands are characterized by their highly rigid and sturdy design, reliable operation, quick roll change capability and easy maintenance requirements. A quick stand change device will be installed in the finishing section to minimize mill downtime. The handling area of the mill will include a 66 meter long cooling bed, a cold flying shear with a 190 tonnes cutting capacity, a bar counting device and an automatic bar bundling system

Gulf Steel Construction Industries Company Limited a subsidiary company of Al Nasser Industrial Enterprises, currently produces reinforcing bars of 120,000 tonnes per annum, cold ribbed bars of 36,000 tonnes per annum and welded mesh of 30,000 tonnes per annum, which are used in the construction industry throughout the Middle East.

Chaparral Steel Q4 profit surge by 43% YoY

Chaparral Steel Company announced that its fiscal fourth quarter profit surged on strong demand from the nonresidential construction market The results came a day after the company announced it accepted a USD 4.22 billion takeover offer from Canada's Gerdau Ameristeel Corp.

For the quarter ended May 31st 2007 Chaparral Steel earned USD 80.2 million as compared with USD 56.1 million in the same quarter of 2006 a 43% gain. Its revenue rose 21% to USD 488.7 million from USD 405.5 million in 2006. Average selling prices of Chaparral Steel up by USD 142 to USD 752 per tonnes as compared to 2006.

For the full year 2007, Chaparral earned USD 269.3 million as compared with USD 157.1 million for 2006. Its revenue rose to USD 1.72 billion from USD 1.47 billion the year before.

Mr Tommy A Valenta president and CEO of Chaparral said "Both global and domestic markets are strong led by robust demand for new industrial production capacity and a solid nonresidential construction market. He added that we expect both markets to remain strong leading to continued healthy financial results."

ThyssenKrupp Acciai to nearly double its capacity

According to an agreement signed by Italian based SS producer ThyssenKrupp Acciai Speciali Terni and Danieli, the Terni facility is expected to see a doubling of its stainless steel production from 850,000 tonnes per year to around 1.5 million tonnes following expansion work to be carried out by Danieli The production due to commence by December 2008.

Mr Harald Espenhahn MD of ThyssenKrupp Acciai Speciali Terni and Roberto Borsi VP of Danieli signed the agreement for the installation of a new continuous casting facility in the plant's hot rolling section.

The new installation will enable the production of stainless steel slabs at Terni. The total investment by German parent company ThyssenKrupp in the expansion at its Italian subsidiary will reach EUR 30 million.

Mr Espenhahn said that "This is a conspicuous investment which will allow Terni to ensure its position as a leader in the stainless steel sector. We have to do what the others are not doing in the sector of special steels in order to be increasingly competitive in costs and to overcome the challenge now coming from China and that which we also expect to come from India and Russia".

Xstrata & ARM to develop Goedgevonden coal mine in SA

South African Rainbow Minerals Limited and Xstrata Coal announced the development of a major new greenfield open cut thermal coal mine Goedgevonden at a total investment of ZAR 2.9 billion (USD392 million). Commissioning of the new mine is expected in the first half of 2009, with full production anticipated from 2011.

At full production, the Goedgevonden mine will produce 3.1 million tonnes per annum of export thermal coal, 3.6 million tonnes per annum suitable for the domestic thermal markets and will have a mine life in excess of 30 years. The mine is located in the Witbank coalfield in the Mpumalanga province.

The mine will be developed through a majority black owned and controlled joint venture, the Goedgevonden JV, in which ARM Coal owns a 51% share. Xstrata Coal South Africa owns the remaining 49%. ARM will appoint the majority of representatives on the Goedgevonden JV management committee, in line with its majority interest. Xstrata Coal will manage the Goedgevonden Project on behalf of the Goedgevonden JV. Xstrata Coal Marketing AG will market all export coal produced by the mine.

Mr Patrice Motsepe executive chairman of African Rainbow Minerals said “We are delighted to announce the development of this major greenfield export project. This is a significant milestone for the ARM growth program, particularly with respect to our recent investment into coal.”

Mr Peter Coates CEO of Xstrata Coal said “The Goedgevonden mine is the first of its kind to be undertaken by a majority black owned and controlled company, will benefit from state of the art infrastructure and be a high productivity, low operating cost business. Goedgevonden will be very competitive in the Atlantic market and is well positioned to compete in the domestic thermal market, given that the JV fully complies with BEE procurement criteria. This significant investment marks Xstrata Coal’s commitment to growing our South African coal business in partnership with ARM Coal, through structures that facilitate ongoing black economic and management participation.”

ARM Coal is a black owned and controlled coal mining company created in February 2006 and is 51% owned by African Rainbow Minerals Limited.

Brazilian Magnesita evaluating sale of controlling stake

BNamericas reported that the controlling shareholders of Brazilian magnesite and refractory producer Magnesita is evaluating strategic options to sell their stake in the company.

As per report Magnesita could be worth about USD 1 billion to USD 1.3 billion and a group of investors including Brazilian asset management firm Tarpon Investimentos would be the most likely candidate to acquire the company.

Meanwhile, no deal has been signed on the potential operation nor has a specific group been selected to engage in negotiations.

Tarpon said in a separate statement to Bovespa that "There is not as yet any guarantee that such investment will be realized."

Minas Gerais state based Magnesita produces refractories for the metallurgy, glass and cement industries and made consolidated net profits of BRL 140 million in 2006.

China export import details for H1 of 2007

According to the latest customs statistics, China exported 6.36 million tons of finished steel products in June 2006, second only to the record high of 7.16 million tons scored this April 2007. Export of semi steels in the same month stands at 750,000 tons.
The import export statistics for January to June 2007 are as under

Volume in million tonnes
Value in USD billion

Volume in million tonnes
Value in USD billion

Sumitomo Metals starts Kashima Steel BF No 3 after relining

Sumitomo Metal Industries Limited announced that it has started blowing in its Kashima Steel Works' No 3 blast furnace after relining, which expanded its inner volume from 5,050 cubic meters to 5,370 cubic meters. With the blowing in of the No 3 blast furnace, blowing out of the No 2 blast furnace was conducted on May 13th 2007

Outline of the No 3 blast furnace
(1) Construction cost JPY 29 billion
(2) Construction period April 2005 to May 2007
(3) Inner volume 5,370 cubic meter
(4) Hearth diameter 15 meter
(5) Top charging system Bell-less to
(6) Furnace cooling system Stave cooling
(7) Number of tuyeres 40
(8) Number of tap holes 4

Special features of the No 3 blast furnace
(1) Same furnace body and top specifications as the No 1 blast furnace
The furnace body and top charging system have been designed completely in the same way as the No 1 blast furnace that came on stream in September 2004. There are various merits for Sumitomo Metals through this initiative, such as cost reductions in design for construction, sharing of spare parts and equipment, and sharing of operation know-how with the No 1 blast furnace in future operations.
(2) Expansion of inner volume
The inner volume of the furnace was expanded from 5,050 cubic meters to 5,370 cubic meters, which is the same volume as the No 1 blast furnace. By switching from the No 2 blast furnace (inner volume: 4,800 cubic meter), crude steel production volume increases 0.5 million tonnes per year at Kashima Steel Works.
(3) Device to prolong campaign life of large blast furnace
As with the No 1 blast furnace, the No 3 blast furnace was designed using two key areas of technologies; one being technologies to maintain the furnace inner profile and the other is state of the art analysis technologies. With such design, Sumitomo Metals aims for the campaign life of the furnace to be more than 25 years, which is 10 years longer than that of conventional large furnaces.

This enables Kashima Steel Works to change its blast furnace structure. The existing system includes the No 1 blast furnace 5,370 cubic meter and the No 2 blast furnace of 4,800 cubic meters but after the relining, operations are being conducted with the No 1 blast furnace 5,370 cubic meter and the No 3 blast furnace 5,370 cubic meter, which are twin blast furnaces. As a result, Sumitomo Metals establishes a full operation system in which the upstream and downstream processes are balanced to produce 8 million tonnes of crude steel annually.

Due to the blowing-in conducted on the No 3 blast furnace, Sumitomo Metals no longer has to transport slabs from Wakayama Steel Works to Kashima Steel Works to make up for the capacity gap between upstream and downstream processes of Kashima Steel Works. Furthermore, Sumitomo Metals will establish a full operation system with balanced upstream and downstream manufacturing of steel sheets, steel plates and other products. Taking advantage of this, Sumitomo Metals will supply more distinctive products and further improve on the world class quality of products and cost competitiveness of the Kashima Steel Works.

EU adopts new guidelines for coal and steel research

The European Commission has adopted the revision of the guidelines for spending funds on coal & steel research. The Research Fund for Coal and Steel has an annual budget of about EUR 60 million for research in these two areas financed by interest on the assets of the now expired European Coal and Steel Community Treaty.

The Research Fund for Coal and Steel program is a separate, complementary program to the Research Framework program and covers all aspects of coal and steel, from production processes to application, looking at the utilization and conversion of resources, safety at work and environmental protection by improving the use of coal as a clean energy source and reducing CO2 emissions from coal use and steel production.

The proposed decision simplifies some administrative procedures, such as
1 Deleting some accompanying measures since they are already covered by the 7th Framework Program
2 Increasing financial support from 40% to 50% for pilot and demonstration projects and allow dedicated calls on identified priorities that converge with the 7th Research Framework Program and dovetail with the Strategic Research Agendas of the relevant European Technology Platforms.

Participation is simple: proposals can be submitted any time with a cut off date of 15 September each year. There is no ceiling for the project budget or for the number of participating partners in each project. Third countries may participate, but do not receive any European financial support. Projects are evaluated by external experts and selected based on the quality of the research proposed. The monitoring of projects is done according to an annual peer review process.

Belarusian Steel to make 26,000 tonnes of seamless pipes in 2007

Mr Nikolai Andrianov GD of Belarusian Steel Work during a press conference in Minsk said that Belarusian Steel Works plans to make 26,000 tonnes of seamless hot rolled pipes in 2007.

According to him, the products to be manufactured in July to September 2007 have been already sold for example to Poland, Italy, the Czech Republic, Germany, Latvia and France. Hot rolled pipes have been certified and meet international and Belarusian standards.

Mr Nikolai Andrianov said that USD 269.4 million has been assigned for a project to construct the pipe rolling production. Some USD 235 million has been utilized already. Another USD 18 million will be channeled into construction of several facilities. He added that “You will not find another facility in the world that would have the coefficient of automation at 1.5 as our plant.”

Belarusian Steel Works founded in 1984. It is an export oriented company sending its products to more than 50 geographies. Export supplies account for over 85% of the total output. It produces cast sections, rolled sections, profiled iron, reinforcing bars, metal cord, brass plated wire for high pressure hoses and other types of wire.

Beam and plate market in US remains robust

Platts reported that US market prices for steel beam and plate products have remained unchanged early in July 2007 despite a small increase in scrap prices. Even with steady market demand and stronger order books, producers have not been able to push prices higher and buyers rejected efforts to raise plate prices by USD 45 per short tons in May and June 2007 after prices increased by USD 25 per tons in April. The current selling price for A36 grade carbon steel plate is about USD 800 to USD 820 per short tons.

The report cites a major steel plate distributor of US as saying that prices remain firm for most buyers beam and plate producers have done a lot better than flat rolled producers at maintaining prices against deep discounting mainly due to steady demand from the non residential construction market, particularly the industrial sector.

Chaparral Steel and Nucor Yamato, two major producers of structural steel products, raised their July 2007 scrap surcharges by USD 5 to USD 105 per short tons but maintained the published price at USD 770 per short tons for wide flange 12x8 beams, the same price level as May and June 2007.

Chaparral, which has annual capacity of about 2.1 million short tons of beams said that the stronger beam market has allowed it to run its mills in Virginia and Texas at close to 90% of rated capacity. This strong operating platform and the rise in scrap costs have pushed beam prices up about USD 100 per short on 2007. Chaparral added that "Imports are not a major factor in the market today. They remain very manageable at about 10%."

Nucor's beam and plate business has helped the company offset a sharp downturn in flat rolled and rebar shipments this quarter. The beam and plate mills including Nucor Yamato and the Hertford, North Carolina facilities are expected to post strong results this quarter. Nucor added that "We expect our beam and plate mills to continue to enjoy healthy demand and post strong results over the second half of 2007."

The uptick in market demand for plate products prompted Mittal Steel USA to announce in May 2007 that it would restart its 160 inch plate mill at Gary in Indiana, which has been idle since 2003. It is scheduled to be fully operational by September 2007 following some equipment renovations required to re open the mill.

According to the American Iron and Steel Institute US domestic production of structural shapes, including beams is up about 2% in 2007 and plate production is up by 5%.

AISI and SMA applaud US ITC for retaining AD duty on rebars

The American Iron and Steel Institute and the Steel Manufacturers Association recently expressed their appreciation to the US International Trade Commission for its decision to maintain antidumping duties on steel reinforcing bar imports from China, Belarus, Indonesia, Latvia, Moldova, Poland and Ukraine. The orders have been in place since 2001 and were subject to a five year sunset review by the ITC.

Mr Thomas Danjczek president of SMA said “We applaud the ITC’s decision. Our trade laws in place are consistent with World Trade Organization rules and it is vital that the US Government enforces them. US imports of steel continue to remain at alarming levels, and this decision of the ITC will prevent the domestic market from being subjected to additional sharp increases in illegally dumped imports of rebar.”

Mr Andrew G Sharkey III president and CEO of AISI said that “We appreciate the ITC’s decision which recognizes the further injury that would be caused to America’s highly efficient rebar producers if current antidumping duties were removed for China and other major foreign suppliers. He said we cannot open the floodgates to dumped imports of rebar or any other steel product because this would threaten the health of America’s competitive world class steel industry. This is especially the case with regard to China, whose steel industry has enormous excess capacity and is the most heavily subsidized in the world.”

Between the two associations AISI and SMA represent virtually all the rebar produced in the United States.

Asha Steel crude steel output in H1 up by 4.2%YoY

Interfax reported that Russian Asha Steel Works has increased output by 2.9% YoY in January to June to RUB 4.519 billion including RUB 779.728 million in June 2007.

AMZ produced 329,723 tonnes of crude steel in the six months up by 4.2% YoY and 242,871 tonnes of roll up by 3.5%. The plant also produced 50.46 tonnes of amorphous strip up by 62.7% YoY. It also sold 150,539 tonnes of steel plate to Russian consumers up by 9.2% YoY and 11,253 tonnes to the CIS up by 6.7% but exported 50,903 tonnes to non-CIS countries down by 4%.

Asha is implementing an investment program that calls for spending about RUB 7 billion over the next two year but it did not pay dividends for 2005 and reinvested that year's net profit in modernization. Shareholders in AMZ voted at their June 29 annual general meeting vote to waive dividends for 2006 and use last year's net profit of RUB 1.45 billion to finance current operations and investment.

AMZ's shareholders include 20 firms with 96.16% of the capital and 733 individuals.

POSCO lowers domestic price for SS

South Korea's POSCO announced that it lowered the domestic price of its hot rolled stainless steel products by 14% on June 2007 due to falling nickel prices.

Ms Ko Min Jin spokeswoman for POSCO said it lowered its hot rolled stainless steel price to KRW 4.35 million (USD 4,730) tonne in June 2007 from KRW5.05 million in May 2007.

POSCO said that it also lowered the price of cold rolled stainless steel products by 13% to KRW4.62 million per tonne from KRW 5.32 million per tonne on June 2007.

It is the first time POSCO has lowered stainless steel prices this year following five price hikes. It raised prices seven times in 2006.

The price of nickel, a key material used in the manufacturing of stainless steel products plunged to an average of USD 41,718 per tonne on the London Metal Exchange in June 2007 compared with an average of USD 52,179 per tonnes on June 2007.

Baotou to explore mineral reserves in Inner Mongolia

Interfax China reported that Baotou Steel Mining Company Limited a fully controlled subsidiary of Inner Mongolian Baotou Iron and Steel Group is set to explore mineral reserves in Inner Mongolia Autonomous Region's city of Bayanur through equity participation with a local mining company.

MBMI expect its first nickel ore shipment from Palawan in July

Platts reported that Canadian MBMI Resources expects the first shipment of nickel ore from its Alpha nickel mine at Palawan in Philippines to be sent out in July 2007.

MBMI official said that it's subsidiary Narra Nickel Mining and Development operates the Narra nickel project which covers the Alpha nickel mine and is preparing the ore for the first shipment as the ore must be segregated, beneficiated and dried prior to loading. Narra Nickel is hopeful, subject to weather conditions that the first shipment shall be during this month.

MBMI official added that Narra Nickel was advancing development of the area in Palawan in preparation for nickel shipments to its first three refinery clients. Initial shipments will start when adequate quantities of nickel are transported from the mine by truck to the stockpile area on the coast. The wet weather has led to some delay in the immediate production schedule but it is not expected to affect the total quantity projected to be shipped out in 2007.

He added that the anticipated production is expected to maximize the small scale mine permits that are coordinated by Narra Nickel on the Alpha property. However, weather conditions may affect the actual tonnage that might be shipped during 2007.

MBMI and its partners from the Philippines control a 100% interest in eight nickel laterite material projects in Palawan and Samar covering more than 22,000 hectares. They plan to become major suppliers of high grade nickel products to consumers in Asia.

Climate controlled self storage building demand in US on rise

It is reported that the demand has slowly been increasing for climate controlled self storage buildings as more and more businesses require them for items that require controlled temperatures.

Climate controlled self storage generally means that the steel and metal buildings are kept below 90 degrees when it's hot and above 40 degrees when it's cold. The humidity in the climate controlled units is also kept below 65% to prevent mold and mildew.

Mr Dean Brown president of American Steel Buildings said that "We've had more and more of our clients asking about climate controlled self storage. It used to be about 10% of our clients asking about climate controlled units. Now we're seeing about 30% of our clients asking about it." He added that variety of clients are seeking climate controlled self storage. There are companies who need temporary climate controlled storage but don't want to spend the money on expansion and maintenance. Many of them have bulk items that they need to store at a certain temperature.

Mr Brown added that "The units are usually a little more expensive to build by about 15% but you can get more rent for them and a more affluent customer. Climate controlled self storage is something that the market is well aware of, so offering those units at reasonable, competitive prices will keep you abreast with the other facilities in your area. The need for climate controlled storage can only grow as the population grows. This trend isn't changing any time soon, and it's up to the industry to keep up with client demand."

According to Mr Brown the only major difference between constructing a regular steel or metal self storage building and constructing one with climate controlled units is that you need a good HVAC contractor. That will ensure that your units are properly insulated and otherwise energy efficient.

BlueScope Lysaght (Fiji) Limited eyes Pacific markets

It is reported that BlueScope Lysaght (Fiji) Limited, manufacturers of roofing and cladding products, will be concentrating on the export market to grow the it's business.
Mr Gary McPike newly appointed president of BlueScope Lysaght (Fiji) Limited said that by growing the export business the company will not be so exposed to what happens here.

Mr McPike said that the company is already getting a lot of enquiries from the Pacific Island countries particularly New Caledonia and Tonga for their products. He added that "We are looking for further business in Tahiti and we are looking at fabricating steel and sending it back to New Zealand. So there are a lot of possibilities for the future. It may not happen tomorrow but we are certainly looking at the next six months time, we think we are well positioned to have an advantage in the market."

Mr McPike said that the 4000 square metre steel solutions plant at Lautoka in Fiji, which was launched in November 2006, has a lot of capacity and is currently only operating day shift. He added that "We can go to two or three shifts to actually increase our productivity and supply the market, if we get the business."

From mid 2006 BlueScope Lysaght (fiji) Limited has seen almost a 40% drop in revenue. However, the company's pre engineered side of business is continuing to grow through exports. Currently, the company's domestic market is 60% while exports are 20%.

Ormet sells rolling mill to Hannibal for setting up service center

Ormet Corporation announced that it has sold the buildings and some of the property that held its former rolling mill to Hannibal Real Estate LLC. Both parties declined to release the price paid for the property.

The rolling mill plant shut down near the beginning of 2006. The shutdown came during a 20 month labor dispute in which 1,200 workers at the rolling mill and Ormet’s reduction plant went on strike. A judge later ruled the work stoppage a lockout. The reduction plant went back online in December 2006. The equipment from that facility and operations at Friendly in West Virginia and Terre Haute in Indiana was sold to Ohio based Aleris International Inc for USD 133 million.

Hannibal Real Estate LLC plans to use the property to develop a steel storage and distribution center. The portion of the facility and property not used in the steel operation likely will be leased to other companies.

Mr Bob Schaal VP of Hannibal Real Estate said that the company will hire about 15 employees within the next month and will be looking to hire at least 20 to 30 employees within the next three months and will be offering very competitive wages and anyone interested in applying for a job at his company should just go to the gate of the former rolling mill and tell the attendant they are interested. He added that “At this point it is impossible for me to say how many employees we will eventually hire because we will just need to see how well the operation goes, but I am very optimistic about it.”

Mr Schaal said his company currently operates several facilities throughout US but will be consolidating its entire operation at the Hannibal facility and will be moving as quickly as possible to get all of the equipment working and get the employees in place.

Mechel commissions automated transshipment complex at Port Kambarka

Russian mining and metals companies Mechel OAO announced the commissioning of an automated alumina transshipment complex, Albatross at its subsidiary Port Kambarka OAO in line with its technical re equipment plan. The commissioning of the self propelled weighing complex Albatross took place on July 7th 2007 during the celebration of Port Kambarka's 65th anniversary.

Port Kambarka is the only port with self propelled equipment of this kind in Russia for transshipping alumina from river to railway transport. The complex is installed on a self propelled gantry equipped with an automation and control system. The complex is controlled by an operator from a cabin. The complex is equipped with bunker scales, metering, video control, loading, compressed air preparation, and emergency valve systems.

Mr Vladimir Polin CEO of Mechel said that "Port Kambarka faces the new season equipped with the state of the art loading equipment. The Albatross complex is designed for transshipping pulverulent and fine grained bulk cargoes from river to railway transport. With this complex, we are able to increase cargo transshipping volumes, reduce loading time and improve the working conditions of the personnel. In addition, using the new complex enables Port Kambarka to enter the logistic system of alumina transportation for Russian aluminum plants."

Pike River Coal float oversubscribed

It is reported that New Zealand Oil & Gas was floating 25% of the mine and was seeking NZD 65 million. However, it has indicated that the offer has been significantly over subscribed by as much as NZD 20 million. Any amount over that is likely to be scaled back once the final subscriptions are tallied.

As per report New Zealand Oil and Gas will retain 35% of the company and Indian coal companies Gujarat NRE Coke and Saurashtra will each hold 20%.

Atlas Iron advises 6 months delay in Pilbara iron ore mining project

West Perth based iron ore firm Atlas Iron Limited has announced an expected six month delay to commencement of mining operations, after receiving informal advice from the Environmental Protection Authority.

Atlas Iron Limited, which aims to export iron ore from its Pardoo project in the Pilbara had tendered a mining submission in relation to its Pardoo direct shipping project in Western Australia and has now received informal advice from the Environmental Protection Authority in relation to its mining submission for the Pardoo Direct Shipping Ore Project. Advice indicates the operation will attract a Public Environmental Review level of assessment. The PER level of assessment will result in a 6 month delay to the commencement of mining operations. This is subject to formal notification from the EPA.

The submission documented a comprehensive 9 month environmental and social impact assessment as well as extensive community consultation.

Mr David Flanagan MD of Atlas commented that "I would like to thank the people of Port Hedland local community groups specialist consultants, government agencies and all the Atlas staff and management who contributed to the exceptional quality of the submission." He added that "This project is great for Port Hedland and the State of WA and we look forward to bringing it online in a timely manner for the benefit of all stakeholders."

Atlas recently signed a one year deal with FMG subsidiary The Pilbara Infrastructure Private Limited for the provision of port handling and ship loading services from March 2008.

Zamil Steel promises long term investment on Vietnam

Mr George E Kobrossy GD of Zamil Steel Viet Nam while speaking at a meeting held by the International Economic and Cultural Exchange Club recently commented to have a long term investment in Viet Nam that has great potential of becoming one of the world’s biggest steel producers.

Mr George E Kobrossy said that "It is the Vietnamese government’s policies to promote exports that encourage us to invest into the country. Country’s fast economic growth has brought about high demand for steel with an average yearly increase of 40% which provides a bright future for steel producers.”

Zamil Steel Viet Nam established in 1997 is a JV between the Saudi Arabia’s Zamil Steel Industries and Mitsui of Japan. Its first pre engineered steel building manufacturing facility was built at Ha Noi’s outskirt Noi Bai industrial zone in 1999. The company has spent over USD 30 million on expanding the plant raising its monthly capacity to 4,500 tonnes.

Russian nickel export during January to May down by 4.2% YoY

According to the latest figures released by Russia’s customs department, Russia’s exports of nickel during January to May 2007 totaled 102,400 tonnes down by 4.2% YoY from exports of 106,900 tonnes in January to May 2006.

Russia exports of nickel have been running below year earlier levels since February 2007 although the gap is closing at its widest in February exports were almost down by 10% YoY.

The report further added that exports would further drop in June 2007, reflecting the spring closure of the port of Dudinka the sole export port of local giant Norilsk Nickel.

Mindoro to ship 1 million tones of nickel ore from 2009

Bloomberg reported that Canadian mining company Mindoro Resources Limited aims to ship as much as 1 million tonnes of nickel laterite ore to China from the Philippines each year by 2009. Mindoro Resources may start output from its Agata mine by the middle of 2008.

Mr Tony Climie president of Mindoro Resources said that the site in Surigao del Norte province has at least 50 million tons of resources containing 0.9% to 1.1% nickel and 28% to 32% iron.

Mr Climie said that still the metal's price might drop to a more realistic level in 2008 as more companies begin output. He said “Developing nickel projects in the Philippines will remain viable for Mindoro as long as prices are at least USD 8 per pound. We still expect a fair margin at that level.”

The Philippines has been attracting overseas mining companies to develop deposits to capitalize on metals prices that have surged on rising demand. Shipments of the laterite ore from the Philippines to China more than doubled in May 2007 to about 776,000 tonnes. Chinese companies process the material into nickel pig iron, which contains about 1 % to 3% nickel. Most nickel is used to make stainless steel.

Jinchuan lowers domestic nickel prices again

It is reported that China's largest nickel producer Jinchuan Group has lowered its two domestic electrolytic nickel prices by CNY 28,000 (USD 3,692) per tonnes each with effect from July 10th 2007. Jinchuan in a statement said that its price for electrolytic nickel (4X4) in drums is now priced at CNY 299,200 per tonnes ex plant and its full plate material is at CNY 298,000 per tonnes ex plant.

This is the second time in July 2007 that Jinchuan has lowered its prices. Jinchuan previously reduced its nickel prices four times in June 2007 shortly after nickel prices fell to around the USD 40,000 per tonnes level on the London Metal Exchange on the introduction of new lending requirements by the bourse in early June. Nickel prices were previously seen at the USD 50,000 per tonnes level on the LME.

Meanwhile, Jinchuan aims to lift its nickel metal production to 110,000 tonnes in 2007 up by 7.8% YoY from 102,000 tonnes produced in 2006. Jinchuan, which accounts for about 90% of China's total nickel output has a capacity of 130,000 tonnes per year currently. It is in the process to raise its capacity of electrolytic nickel to 150,000 tonnes per year by 2010.

The LME official cash price for nickel slipped to USD 34,855 to USD 34,860 per tonnes on July 9 from USD 36,350 to USD 36,355 per tonnes on July 3rd 2007.

Chinese Railway H1 freight volume up by 10.5% YoY

Xinhua reported that Chinese Railways carried 1.53 billion tonnes of freight in the first half of 2007 up by 10.5% YoY. The railways ministry of China said that coal movement surged by 13.3% YoY to 750 million tonnes.

The ministry credited the higher transportation figures to the train speed boost in April. On April 18th 2007, China boosted its railway speed for the sixth time and 286 trains now run at speeds of up to 250 kilometers per hour. From April 18th 2007 to June 18th 2007 railways nationwide carried 526 million tons of freight and 218 million passengers up by 7.7%YoY and 4.7% YoY respectively.

According to the ministry China plans to put more than 500 high speed trains into operation by the end of the year and expects to increase passenger capacity on the China's 77,000 kilometer of railway routes by 18% and freight capacity by 12%.

In 2006, China made up a quarter of the world's total railway transport volume even though its total track was only 6% of the world total.

Kunming to develop lead & zinc mines in Inner Mongolia

Interfax China reported that Kunming Iron and Steel Group recently entered into an agreement with the Wengniute Banner government from the city of Chifeng in the Inner Mongolia Autonomous Region to develop a series of lead and zinc projects.

Chinese Yongcheng plans for USD 1.3 billion dual listing

Reuter reported that China’s Yongcheng Coal & Electricity Group plans to raise at least USD 1.3 billion (HKD 10.1 billion) from a dual listing in Shanghai and Hong Kong late 2007.