July, 15 2007
Jharkhand to oppose proposed mineral policy
It is reported that Jharkhand government would oppose the new mineral policy of the central government that has been recently approved by the group of ministers, as it would strip the power of the state to recommend the mining leases to the central government.
The new recommendations will hurt the state government's policy to allot mining leases to only those companies who commit value addition in the state". As per the new policy, the interested parties will directly participate in the auction of mining leases and the state will lose power to recommend the mining leases to the central government. If the new policy is implemented, it will also directly impact the steel industries of the state.
As per report, Jharkhand government is also planning to seek support from other mineral rich states like Orissa and Chattisgarh. The report cites a source as saying that "The chief ministers of the three states are likely to seek time from prime minister and lodge their protest.”
Accident at Visa Steel injures 24 persons
It is reported that at least 24 persons suffered burns when a fire broke out in the Visa Steel factory at Kalinga Nagar Industrial Complex in Jajpur district of Orissa on Saturday afternoon. All the injured persons have been brought to the Sun Hospital in Cuttack. The condition of at least six of them was stated to be critical.
According to the police, the incident occurred at around 1:30 PM, when mishandling of a gas injector led to an explosion injuring the workers and engineers. Among the victims are one graduate engineer, four permanent workers and 19 contractual laborers of the plant.
The reports added that, as news about the mishap spread, laborers and local people ransacked the administrative building of the factory and damaged part of it.
Orissa opposition attacks POSCO project on 4 major issues
The battle over POSCO’s proposed steel plant in Orissa has intensified between opposition parties and the ruling combine with opposition leaders questioning the project on a number of grounds and the state government defending the venture on all fronts, despite stiff opposition from the people getting effected by the project.
Opposition leaders disputed Orissa governments continued support to POSCO’s steel project specifically on the following areas
1. Land acquisition
Suggested that the project be shifted from the proposed location in Jagatsinghpur to the place near Gopalpur where TATA Steel had acquired land for a steel project several years ago.
2. SEZ status
Steel project should not be accorded the SEZ status at any cost as it would cause severe financial losses to the state
3. Iron ore mining lease
Opposed the move to grant mining lease to POSCO saying that the company be asked to purchase iron ore at market rate.
4. Captive port
POSCO should be asked to use Paradip port instead of setting up its own port facility.
As per report, Orissa government is bent upon keeping the promises made initially to lure what they thought was the biggest ever FDI into India despite the prevailing situation.
Indian iron ore miners eying Malaysian deposits
BS reported that cash rich Indian iron ore mining and exporting companies, which are feeling the heat of INR 300 a tonne export duty on iron ore, are now heading towards Malaysia in search of better prospects as Malaysian iron ore resources are largely unexplored and present a good opportunity for the Indian mining companies owing to its geographical proximity to China the principal consumer of iron ore.
As per report, apart from an Australian company, a few local companies are engaged in extracting iron ore in Malaysia and Indian companies are exploring JV options with them. The Bangalore based Mineral Enterprises in association with another Karnataka based mining company Matha Minerals has launched a 66:33 JV Iron Stone Mining for its Malaysian foray.
The report cites Mr Basant Poddar MD of Mineral Enterprises as saying that “Unlike India, there are no curbs on iron ore exports in Malaysia. Besides the mining laws are flexible. Malaysia has an excellent network of road railway and port infrastructure. A container ship needs just 7 days to reach China from Malaysia as against 15 days from India. Besides, Malaysian mining companies are looking for foreign investments which are in the process of entering Malaysia.
Mr Poddar said “We have tied up with a local Malaysian company KSG Resources. At present we are conducting resource exploration in the lease area and expect to hit upon sufficient deposits of iron ore. We intend to start mining in the next six months. Our initial investment will be around USD 5 million.”
He added that the company plans to produce 1.5 million tonnes of iron ore every year and will be scaled up gradually and the entire stock will be exported to China.
As per report, another Indian iron ore firm SL Mining Industries has applied for a mining lease in Malaysia.
Indian government to sell its 29.5% stake in HZL
It is reported that union government is set to reap a windfall of INR 8381 crore from the sale of its residual stake of 29.5% in Hindustan Zinc Limited. This will be the government’s second biggest realization from a single deal after the divestment of a 10% stake in ONGC in March 2004 for INR 10,500 crore.
According to a disclosure made in the red herring prospectus filed with the US Securities and Exchange Commission by Sterlite industries, which acquired Hindustan Zinc in April 2002, the company can exercise a call option after April 11th 2007 at a price to be determined by an interdependent appraiser.
The prospectus said that “Based solely on the market price of Hindustan Zinc’s share on the Bombay Stock Exchange on June 2001 INR 647.75 (USD 16.09) per share and not including the other factors that the independent appraiser may consider one possible estimation of the exercise price to acquire all the government of India’s 124795059 shares of Hindustan Zinc will be INR 8083.6 crore (USD 2 billion).”
Sterlite has acquired a 26% stake in Hindustan Zinc from the government of India for INR 440 crore and another 20% through an offer worth INR 337 crore. Under the shareholders’ agreement, union government had granted Sterlite 2 call option to acquire all the shares in Hindustan Zinc held by it. Sterlite exercised the first call on August 29th 2003 an acquired another 18.9% for INR 323.9 crore, taking its total holding to 64.9%.
Indian purchase of SA coal slows down
Reuters recently quoted some Indian coal traders as saying that Indian purchase of South African coal had slowed considerably and is unlikely to pick up until September 2007, when current high stocks had been consumed. There are high coal stocks at all Indian ports, particularly those on the west coast. Vessels bringing in South African cargoes were having to queue for several days because ports could not handle the berthing and discharge of the number of vessels scheduled.
Coal producers and traders said that a sharp fall in Indian buying for even a few weeks would be likely to cause South African prices to fall. They added that "There is no demand from Indian traders because there is very little demand from end users. In any case, traders are still selling stocks from cargoes brought in at much lower prices than current levels. There are full stocks at all the ports and these will take a couple of months to be used up. The big corporate buyers and the small consumers have got almost all that they need now and there is no need to buy."
An Indian coal trader said that "Prices are already falling. There was a trade at less than USD 57. Nobody in India is buying nobody in Europe wants to buy, so the prices must fall further."
India's emergence as an unexpectedly strong buyer this year, seeking to replace lost tonnage from China and Indonesia, pushed prices up from USD 47 (ZAR 332) FOB Richards Bay in January 2007 to recent high of about USD 61. Coal traders said that India and Pakistan have imported about 4 million tonnes of South African coal in 2007 almost all via Indian trading companies.
South African coal producers said that they had not made any fresh sales into India or Pakistan during the past two weeks, although they were still receiving enquiries. Coal producers and traders remain confident of renewed demand for South African cargoes from India and Pakistan, but also from South Korea as well as Japan.
L&T to set up two substations at Saadiyat Island in Abu Dhabi
Larsen & Toubro announced that it has bagged contracts worth INR 853 crores from the Abu Dhabi Water & Electricity Authority for design, supply, installation and commissioning of the two 132/22 KV substations at Saadiyat Island in Abu Dhabi with Mott MacDonald as consultant to the project.
The release said each substation consists of 132 KV gas insulated switchgear, 22KV gas insulated switchgear, 63/80MVA -132/22KV transformers, substation control & monitoring system, protection & telecommunication system, DC system & auxiliaries and substations. The Contract also encompasses design and construction of the substation buildings together with the associated utilities. The Contract will be completed within 18 months.
NTPC board approves investment in Aravali Power
It is reported that the board of NTPC Ltd has cleared a proposal to invest up to INR 1,000 crore in its JV company Aravali Power Company Private Limited for implementing a 1,500 MW thermal project in Haryana.
NTPC in a statement said that the board took a decision in this regard at its meeting held on July 3rd 2007 and the investment has been approved to enable the JV company to implement the Aravali Super Thermal Power Project at Jhajjar.
Aravali Power is a JV firm formed by NTPC Indraprastha Power Generation Corporation Limited and Haryana Power Generation Corporation Limited.
PSEB to find new site for its 500MW nuclear power plant
It is reported that the Punjab State Electricity Board has been asked to find a suitable location for setting up the 500MW nuclear power plant near Abohar despite the proposal for setting up a coal based thermal power plant of 1,200MW had earlier got a green signal from Mr Parkash Singh Badal chief minister of Punjab.
The project was earlier cleared by the government for setting at Banavala village and also at Nabha while another thermal plant to be set up Goindwal.
The state government will be writing to the Central Electricity Authority for approving the proposal to set up the thermal plant at Abohar. As far as the new power projects are concerned, Punjab government is moving fast on this front and has aimed to add 5,000MW of additional power to the state grid in the coming 5 years.
Terms of reference for EIA for 5 power projects issued
India’s ministry of environment & forest has prescribed the terms of reference for preparation of the draft environment impact assessment report pertaining to five power projects with the total generation capacity of 2,685 MW.
The project list includes
1. TATA Power - Jojobera project in Jharkhand - 120MW
2. MahaGenco - Bhusawal thermal project in Maharashtra - 300MW
3. KVK - Nilanchal thermal project in Orissa - 600MW
4. CESC - Purba Medinipur thermal project in West Bengal - 660MW
5. Monnet Ispat - Thermal power project in Orissa - 1,000MW
NHAI signs agreement for two BOT road projects in Karnataka
It is reported that National Highways Authority of India signed a concession agreement for two projects in Karnataka on build operate & transfer basis under National Highways Development Project Phase III.
The agreement was signed for
1. 4 laning of Bangalore Hoskote Mulbagal section of NH 4
2. 4 laning of Neelamangla Devihalli section of NH 48
The combined length and the total project cost of the two stretches are 160 kilometer and INR1.006 crore respectively. The concession periods are 20 and 25 years respectively which includes 30 months construction period.
Bharati Shipyard gets order for 2 vessels from Norway
Bharati Shipyard Limited announced that it has secured an order worth USD 43.4 million for design construction and supply of two vessels from its client Sea Cargo Skips AS of Norway.
Eurofer preparing for AD duty on Chinese steel – Report
Reuters citing a steel industry representative reported that European steel makers are readying requests for anti dumping duties against surging Chinese imports in the hope of heading off a slump in prices.
Mr Karl Tachelet trade director at the European Confederation of Iron and Steel Industries said that Chinese steel exports to the EU are set to double this year to about 10 million tonnes from record levels last year. He said "Instead of waiting for the inevitable, we have started preparing anti dumping complaints based on the threat of injury which are well advanced. Unless we see an immediate, significant decrease in imports, Chinese exports will inevitably depress EU prices, injuring EU mills."
Mr Tachelet said “The association is now working on requests for duties on hot rolled coil, wire rod and cold rolled stainless steel products and a decision to press ahead with them depended on what happens in the next few months."
Under EU trade rules, European industries can ask the European Commission to probe suspected dumping by exporters outside the bloc, usually by showing that they are being damaged but in some cases by showing the risk of imminent injury.
Mr Peter Mandelson trade commissioner of EU raised his concern about the issue with Chinese counterpart Mr Bo Xilai last month. EU and China trade officials specialists are due to meet in Beijing to discuss steel.
However, some consumers of steel in Europe, such as engineering companies, are opposed to the idea of making Chinese imports more expensive. They said that prices in Europe remain high and steel makers' profits are buoyant.
Baosteel to lead China's team in next year's iron ore price talks
According to a decision made by the China Iron and Steel Association this weekend, China's top iron and steel giant Baosteel will continue its role in 2008 to talk with major international iron ore suppliers on behalf of Chinese iron and ore producers.
Mr Luo Bingsheng deputy general secretary of CISA said that next year's price talks will continue to focus on the relations of iron ore supply and market demand. He said that the international supply and demand of iron ore is seen balanced during the 2007-2008 fiscal year and it is likely that supply will exceed demand.
Mr Luo said that China's import of iron ore will be around 367 million tonnes in 2007 as against the predicted figure of 400 million tonnes by overseas institutions is obviously too high.
He said that overseas suppliers have the advantage of manipulating output volume and the top three iron ore producers do have intentionally reduced their output recently to push up market price in preparation for next year's talks.
MMK to set up 2nd color coating line
MMK has signed a contract for the delivery of equipment for the new color coating line with FATA Hunter. The start up of the new coating line is scheduled in 18 months after the signing of the contract for equipment supply, that is, roughly in January of 2009.
When implemented, the project would increase production of high quality color coated sheet to 400,000 tonnes per year increasing the share of value added goods in the total output of the Company.
MMK commissioned its first color coating line with an annual capacity of 200,000 tonne per year in 2004. But due to increased demand for premium quality color coated sheet from manufacturers of white goods and the construction sector, it became necessary to increase production of such material at MMK. In addition, there has been a rise in demand for rolled products with detachable protective film and for products with decorative laminate film and embossed surface from the same two sectors plus furniture producers. This led to the management's decision to build a second color coating line comprising hot and cold laminators and an option for an embossing roll and a tension leveler. The design of the new line's furnace also provides for manufacture of material suitable for white goods.
The Magnitogorsk Iron and Steel Works OJSC ranks 20th among the world's largest steel producers and is one of the leaders of Russia's steel industry.
Alcoa withdraws Alcan bid
It is reported that the world’s 2nd largest aluminum company Alcoa Inc has withdrawn its hostile USD 27.7 billion takeover bid for Alcan Inc after mining group Rio Tinto topped the offer by agreeing to pay USD 38.1 billion. Rio Tinto’s offer of USD 101 per share in cash for Montreal based Alcan is 33% more than Alcoa’s cash and stock bid in May 2007.
Mr Alain Belda CEO of Alcoa in a statement said that “At this price level, we have more attractive options for delivering additional value to shareholders."
Alcoa said it will resume a share buyback program that was suspended during the Alcan offer.
German steel producers dismiss steel futures on LME
Thomson Financial reported the German steel association said that steel futures lacks support in Germany.
The report cites Mr Dieter Ameling president of German Steel Association as saying that “Steel is fundamentally unsuitable for exchange trading like aluminum, nickel or copper. We do not think this is a way to avoid price fluctuations.”
Mr Ameling said that exchange trading would benefit brokers and agents but producers would benefit less. He said “Steel is not suitable for warehousing, either as slabs tend to be processed immediately rather than kept as stock. We therefore predict a meager trading volume in London.”
London Metal Exchange announced plans last month to introduce steel billet futures contracts in April 2008. There are plans for steel futures trading in Dubai, Shanghai and New York too.
Salzgitter to hike sales target on strong orders
Euro magazine reported that Salzgitter AG would increase its full year sales growth target in two or three months to reflect strong new orders and profitability growth in the early part of this year.
Mr Wolfgang Leese CEO of Salzgitter during an interview told Euro News that Salzgitter may exceed EUR 10 billion as early as this year as compared with the company's previous forecast of exceeding 2006's EUR 8.45 billion. Mr Leese also said that he expects revenue to continue growing next year.
With EUR 2.5 billion in its war chest, Salzgitter is currently also looking for takeover targets to further expand its business. During the interview Mr Leese said “We are prepared to take on larger acquisitions. We are looking in all directions.” He added that a potential takeover target may be active in Salzgitter's existing business areas such as steel and pipes but is also looking at the technology sector.
This year, Salzgitter has already bought Kloeckner-Werke AG, which makes filling and packaging equipment and is also active in mechanical engineering, robotics and automation technology.
ChTPZ to invest RUB 100 million in scrap firms in Ulyanovsk
Interfax reported that ChTPZ Group’s scrap metal division ChTPZ Meta plans to invest about RUB 100 million in 2007-2008 to become one of the largest scrap processing companies in the Ulyanovsk region of Russia.
UNP Vtorchermet, which ChTPZ Meta acquired in April as part of its regional expansion strategy, is now being modernized and integrated into the holding's unified management system. UNP Vtorchermet processed 51,000 tonnes of scrap in 2006 and this figure is targeted to grow to 140,000 tonnes annually in coming years.
Mr Yaroslav Zhdan head of ChTPZ Meta said that "We want the sector in which we work to become as transparent and efficient as possible.”
ChTPZ Meta was created to supply scrap to the ChTPZ Group's Chelyabinsk Tube Rolling Plant and Pervouralsk Novotrubny Pipe Works. ChTPZ Meta includes Meta Yekaterinburg, Meta Chelyabinsk, Meta Kurgan, Meta Tyumen, Meta Perm, Meta Kazan, Meta Ufa, Meta Ulyanovsk and Samaravtormet.
Masteel commissions two new slab casters
It is reported that Maanshan Iron & Steel Co Ltd of China has taken two SMS Demag supplied 2 strand continuous slab casters into operation successfully. On the casters, Masteel is casting sophisticated grades for the automotive, construction and for pipe production.
The casters are designed for the joint production of 5.7 million tonnes of flat products each year. With a casting speed of up to 2.2 meters per minuet they cast slabs in widths between 950mm and 2,150mm and thickness of 230mm and 250 mm. Except for the horizontal section, the casters are of identical design and differ only in respect of their machine length.
The SMS Demag supply scope comprised the engineering, the mechanical equipment, electrical & automation systems including the metallurgical process models, erection and the commissioning.
16 miners escape from coalmine accident in Shanxi
Xinhua news agency reported that poisonous gas 16 out of 20 people trapped in a coalmine in the town of Hejin in Shanxi province have managed to escape unhurt and now 4 miners remain trapped.
Xinhua, citing the provincial mine safety administration, said that workers were clearing a mine pit to investigate a previous accident when the gas leaked at dawn, trapping two rescue workers, two mine safety workers and 16 miners.
The trapped workers had been investigating a June flood at the mine in Hejin, which killed 9 miners and was originally covered up by the mine owner.
ArcelorMittal joining LME to cut metal costs and not for steel futures
Reuter cited Mr LN Mittal CEO of ArcelorMittal as saying that ArcelorMittal wants to join the London Metal Exchange not because it might sometime trade in steel futures but because it is a major buyer of alloys and raw materials. Mr Mittal during an Interview said that "You should not confuse our LME membership with steel futures. My personal view is that steel future is not good for the steel industry. That has not changed."
When asked why ArcelorMittal applied to join the LME, which is due to begin trading in steel futures contracts next April. Mr Mittal said that the company had applied for third tier membership and this is only to buy the alloys. He said that "LME membership is more for our raw material buying. We are the largest steel company in the world and the largest buyer of a lot of alloys and materials."
ArcelorMittal currently buys metals such as nickel, tin and zinc through LME member firms and LME membership would save costs by reducing the role of intermediaries. If its application is approved by the LME board, ArcelorMittal will as a category 3 members is able to clear LME contracts in its own name but not issue contracts for clients or trade in the open outcry sessions.
Petrovsky asks Danieli to build new rolling mill
Ukrainian Journal reported that Petrovsky Steel Plant in Dnipropetrovsk plans to commission Italy's Danieli to build a new rolling mill to replace a mill that has been operating for more than 50 years.
Mr Vitaliy Korniyevsky CEO of DMZ said that “DMZ and Danieli are discussing the development of proposals for the construction of the new mill, which would be installed in the No 1 rolling division on the site of the existing mill.”
Fujitec elevators built with substandard steel
It is reported that Japan’s leading elevator manufacturer Fujitec Company used substandard steel in more than 12,000 elevators and that at least 560 could fall short of mandatory strength standards. Japan’s ministry of infrastructure has called on managers of buildings with Fujitec elevators installed to limit passenger numbers for each ride and carry out reinforcement work immediately.
The ministry said that Fujitec used substandard steel in 12,727 elevators and 634 escalators it manufactured since 2002. The ministry added that 560 elevators apparently did not meet mandatory strength standards set under the Building Standards Law. Some Fujitec elevators have only 66% of the legally required strength standard.
The ministry said that when operating under normal conditions, such elevators pose no problem. That is because the Building Standards Law requires elevators to be built to withstand up to three times the load they carry. But problems could arise if an elevator were to stop between floors in the event of an earthquake with an intensity of upper 6 on the Japanese scale of 7.
Substandard steel was used to reinforce the guide rail, known as rail backing, for the crosshead that supports the cage and for the safety plank at the bottom of the elevator.
JFE Shoji Kenzai Hanbai the company that supplied the steel said that Fujitec officials were aware the material was below design specifications. Fujitec's order forms designated steel known as SS400, which is used for bridges, ships and vehicles but JFE Shoji Kenzai Hanbai delivered SPHC steel, which is weaker. Mr Takakazu Uchiyama president of Fujitec and other officials said the company was convinced the steel was of the SS400 type because delivery slips and inspection certificates, as well as Fujitec's order forms all said the steel was of SS400. But officials of JFE Shoji Kenzai Hanbai, including Mr Koji Iwase president said the company delivered SPHC steel based on an agreement with Fujitec's procurement division.
Ferrexpo Poltava GOK H1 output up by 15% YoY
The UK based company Ferrexpo, which focuses on Ukrainian iron ore assets, has issued the production results for its main iron ore subsidiary Poltava GOK for the first half of 2007.
According to the company release, in the first half of 2007 Poltava GOK saw a 15% YoY increase in its iron ore output, an 18%YoY rise in its concentrate output and a 19%YoY increase in its pellets output. The respective figures were 14.5 million tonnes, 5.3 million tonnes and 4.7 million tonnes.
Mr Viktor Lotous COO of Ferrexpo said that based on the results it can be said that Poltava GOK continues to be the leader in the Ukrainian pellets market. Mr Lotous added that the company will continue to provide the basis for stable growth in pellet production and the desired quality improvement.
Russian scrap exports in Q1 up by 25.8% YoY
YIEH reported that the total export volume of Russian scrap was 1.66 million tonnes in the first quarter of 2007 up by 25.8% YoY.
The biggest market was Turkey with 659,000 tonnes accounting for 39.7% of total export volume. The second largest market was Spain with 235,000 tonne although down by 12.4% YoY but accounting for 14.2% of total exports volume. During the period, Taiwan has become the emerging market for Russian scrap with 108,000 tonnes up by 139% YoY.
OMK gets DNV OS F101 certification
FIS cited Mr V Markin president of OMK as saying that “In April, our company was certified by quality standard of Norway's Det Norske Veritas DNV-OS-F101 and specification of the Nord Stream project.”
As per report, with this, OMK has become Russia's and CIS first qualified producer of pipes in conformity with DNV OS F101 standard for underwater pipeline systems.
Cuervo Resources announces iron ore exploration in Peru
Canadian private exploration company Cuervo Resources Inc announced that the Company's Category C Environmental Assessment has been accepted by the Ministerio de Energía y Minas del Perú. The Assessment covers areas of proposed exploration work on its Cerro Ccopane iron ore prospect, located 65 kilometer south of Cuzco in Perú.
Cuervo Resources will now coordinate the immediate mobilization and commencement of a program of diamond drilling on the property. This program will target areas of known mineralization on surface and geophysical anomalies identified by recently completed magnetic and gravimetric surveys. Cuervo anticipates carrying out approximately 4,000 meter of drilling in the coming months.
Cuervo is focused on the exploration for iron ore in Perú and currently holds a 100% interest in over 7,000 hector of prospective mineral exploration lands in that country through its wholly owned subsidiary, Minera Cuervo SAC.
Tenova Goodfellow receives Award of Excellence
Tenova Goodfellow Inc announced that it has received an Award of Excellence from the Consulting Engineers of Ontario for the process control work performed at Topy Industries Limited’s Toyohashi Factory in Japan. The Consulting Engineers of Ontario Awards Program recognizes the contribution of the consulting engineering sector to quality of life.
The award was achieved on the merits of improved environmental benefits including significant reductions in the use of kerosene by 45% and carbon consumption by 13% with reductions in greenhouse gas emissions including 5% in CO, 18% in CO2 and 7% in H2 contributing to a cleaner environment.
Mr Tom Judek a judge on the Consulting Engineers of Ontario awards panel said that “What was impressive with this project was that it was Canadian technology and that there were quantifiable benefits that the company had derived. There were direct measurable benefits of that technology.”
Consulting Engineers of Ontario is the recognized voice of consulting engineering in Ontario. It is a not for profit, member governed association representing over 250 consulting engineering firms in Ontario. The mission of Consulting Engineers of Ontario is to actively promote the business and professional interests of its members to clients, regulators and the public. Consulting Engineers of Ontario is a member organization of the Association of Consulting Engineers of Canada.
Tiangong offers 130 million shares in Hong Kong IPO
XFN ASIA reported that Tiangong International Company Limited is seeking to rise up to HKD 827 million by selling 130 million shares at HKD 5.4 to 6.36 each in an initial public offering in Hong Kong.
Tiangong in a statement said that retail subscription opens on July 13th 2007, with trading of the shares to start on July 26th 2007. It said it will use the net proceeds to expand its production facilities and repay bank loans.
Tiangong International Company is engaged in the manufacture and sale of high speed steel, high speed steel cutting tools and die steel.
Nisshin Steel to hike nickel based SS CR prices by JPY 35,000
Nisshin Steel announced that it is planning to increases the selling price of nickel series stainless cold rolled sheet steel by JPY 35,000 per tonnes for distributors for July to August 2007 order. It also increases the chrome series cold rolled sheet by JPY 20,000.
Nisshin tries to pass the higher cost for nickel and chrome under lower yen rate through the hike. The price hike is 9 times in a row for nickel series and 5 times in a row for chrome series since March 2006 and November 2006 respectively.
Hwange coal mine failing to meet local demand
It is reported that Zimbabwe's state run Hwange Colliery Company is producing coal way below capacity and is failing to meet its supply commitments to some of the country's major utilities and manufacturers. As a result, despite Zimbabwe sitting on some of the biggest natural coal reserves in the mineral rich Southern African region, local companies have been forced to import coal from neighboring country Botswana.
Mr Callisto Jokonya president of the Zimbabwe Confederation of Industries said that "Hwange has failed to supply industry with coal and most companies have since 2005 been importing their own fuel from Botswana."
Hwange Colliery Company distribution sector chart showed that the company is only meeting 52% of demand leaving most companies to import coal. Against Zimbabwe demand for coal of around 380,000 tonnes per month, Hwange is managing about 197,000 tonnes leaving a gap of 182,700 tonnes every month.
As per report, Hwange is supplying the state's Zimbabwe Power Company with 153,000 tonnes of coal against the company's monthly needs of 180,000 tonnes. The chart also revels that Hwange is currently supplying 9,000 tonnes of coal to the Zimbabwe Iron and Steel Company against a monthly demand of 15 000 tonnes.
The report cites a company spokesperson as saying that "The new machinery that government sourced is frequently breaking down and most of the mining equipment was frozen underground and will need to be rehabilitated. The situation is critical and we have since resorted to importing coal from Botswana. But with the price controls issue, most companies will simply stop doing so."
Taigang to invest on energy saving and environmental measures
It is reported that Taigang will invest over CNY 3 billion on 19 projects during the 11th Five Year Plan period to boost development of energy saving and discharge reducing.
As per report, the target during the 11th Five Year Plan period is to reduce energy consumption by over 25% per CNY 10,000 production value fresh water consumption to produce one tonne of steel by more than 40%; dust emission by 23%, SO2 emission by 87% and realize solid integrated utilization of 100% and zero discharge of industrial waste water.
During the 10th Five Year Plan period Taigang invested CNY 3.946 billion to build 38 such projects. In 2006, Taigang reduced energy consumption by 60% per CNY 10,000 production value compared to 2000 fresh water consumption to produce one tonne of steel by nearly 70% and discharge amount of dust and oxygen consumption by chemical by 80% and 90% respectively.
SCM to invest USD 6.2 billion in next 5 years
Mr Roman Vodolazsky CFO of Mr Rinat Akhmetov's System Capital Management told the Ukrainian Dilo newspaper that SCM plans to invest more than USD 6.2 billion in its businesses in the next five years.
Transneft invests USD 6 billion in East Siberia pipeline
RIA Novosti reported that Russia's state run pipeline operator Transneft has invested RUB 160 billion in the East Siberia Pacific Ocean pipeline being built to transport crude eastward. Mr Semyon Vainshtok president of Transneft said that "To date we have invested RUB 160 billion."
He said that the crude from West Siberia would not be pumped through the ESPO pipeline as East Siberian oil would be enough to fill the pipe. He added that "Fears about fulfilling the pipeline capacity have not materialized. We have already received orders for 36 million tons of oil from East Siberia."
Mr Vainshtok also said Transneft had already built 1,000 kilometers of the ESPO pipeline or more than a third of the project's first stage, adding that the company had reached the planned level of building 5 kilometers per day.
The East Siberia Pacific Ocean pipeline project with a design capacity of 80 million tonnes of crude annually was launched in April 2006 and is set to transit Siberian oil to the Asia Pacific market. The pipeline will cover over 4,700 kilometers and is being built in two stages.
At the first stage, a 2,757 kilometer section will be built with a capacity of 30 million tons of oil per year. The project's first leg is estimated at USD 11 billion and will be commissioned in December 2008. It will link Taishet, in East Siberia's Irkutsk Region to Skovorodino in the Amur Region in Russia's Far East.
The second leg will stretch for 2,100 kilometers from Skovorodino to the Pacific. It will pump 367.5 million barrels of oil annually. The second stage also envisages an increase in the Taishet Skovorodino pipeline's capacity to 588 million barrels.
Transneft and Russian energy giant Gazprom have set up a working group to discuss the construction of a gas pipeline along the East Siberia Pacific Ocean oil pipe project, adding that his company was prepared to provide consulting assistance to the gas monopoly. The construction of a gas pipeline to run parallel to the ESPO project is conditioned by the structure of hydrocarbons at East Siberian deposits that are rich in petroleum associated gas and condensate.
US Steel appoints Mr George as counsel for Tubular business
United States Steel Corporation announced that it appoint Mr George J Stewart as senior counsel Tubular which effective from July 1st 2007.
Mr Stewart is responsible for establishing and supervising a Dallas based extension of US Steel's law department that will support the company's tubular business unit.
Mr Stewart's career at US Steel began in 1990 as an intern in the company's law department at its Pittsburgh headquarters. He was promoted through a series of positions in the litigation, international law and commercial sections of the department before being named assistant general counsel at US Steel Kosice in the Slovak Republic in 2001. Two years later, he was appointed executive director legal and general affairs at US Steel Serbia. He returned to the United States and the company's headquarters in October 2004 when he was promoted to his most recent post general attorney commercial.
Mr Jianfei appointed as independent director of Puda Coal
Puda Coal Inc has recently announced the appointment of Mr Ni Jianfei as an independent director to its board of directors under its commitment to enhance its corporate governance practices.
Mr Ni has extensive experience in coal industry research, coal mine design and management, operations and risk control, most recently at a coal mine design and consulting company. He served in Taiyuan Institute of Coal Industry Design & Research for over 25 years and he was Vice President and Chief Engineer before he retired in 2005, and served as an engineer at Siwangzhang Coal Mine Guangdong for 12 years. He graduated from China University of Mining & Technology in 1968 and holds a senior engineer certificate issued by the Chinese government.
Mr Zhao Ming chairman and CEO of Puda said "We are delighted to welcome Mr Ni to our board. His expertise and experience in the coal industry will be a major asset to Puda Coal and we will pursue other qualified directors to serve on our board as we further strengthen our corporate governance and oversight."
Puda Coal Inc Puda Coal through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 2.7 million tonnes of annual coking coal cleaning capacity and management believes it is the largest coking coal cleaning company in terms of capacity in Shanxi Province at China.
Global Nickel launches AUD 3 million IPO for funding nickel JV
Subiaco based Global Nickel Investments Limited recently announced that it plans to raise AUD 3 million in its initial public offer to fund exploration of prospective gold and nickel projects in a JV with Cazaly Resources Limited. The money will be used to acquire a 70% stake in each of four nickel gold projects owned by Cazaly and Global Nickel serve as operator of a subsequent JV.
Global Nickel's IPO opened on July 9th 2007 and is to close on July 27th 2007 with listing on the Australian Stock Exchange expected around August 9th 2007. Global Nickel is offering 15 million shares at 20 cents each.
Mr Andrew Mortimer MD of Global Nickel said that the ambition was to build world class portfolio of nickel assets. He added that "Under investment and lack of exploration has limited nickel supply over the past five years and we are delighted to have acquired these highly prospective tenements from Cazaly Resources."
Mr Nathan McMahon MD of Cazaly Resources said that Global Nickel's management team brought strong exploration and corporate experience to the joint venture. He added that "Cazaly has retained a 30% stake in the Jutson Rocks, Cosmos North, Forrestania and Bandalup projects and looks forward to the commencement of an active exploration program."
North Queensland Miner applies for 13 new tenements
North Queensland Metals Ltd announced that it has applied for 13 new exploration tenements totaling 2626 square kilometer as part of its strategy to develop multiple sources of tin, copper and other mineral resources in far north Queensland.
Mr John McKinstry CEO of North Queensland Metals said that the company was seeking to expand its exploration tenure holdings in 4 new project areas, all within a 140 kilometer arc south of the proposed mining operation near Herberton. North Queensland Metals's immediate focus remains on completing the feasibility study into the development of the Baal Gammon copper tin deposit near Herberton at the heart of the rich Herberton-Irvinebank tin field. The new applications are an extension of this strategy.”
Mr McKinstry said that "The company is advancing exploration in the area surrounding Baal Gammon, where we aim to develop several mines to feed ore to a central milling facility. Initial production at Baal Gammon is expected in late 2008, subject to the completion of the feasibility study in 2007. The company has taken the opportunity to secure further highly prospective, under explored ground where we look to establish long term operations covering a number of specialty minerals in the region."
CEZ to sue coalminer Mostecka Uhelna
Thomson Financial reported that Czech power producer CEZ will ask courts to confirm the validity of its agreement with coal miner Mostecka Uhelna on long term coal supplies.
CEZ claims that Mostecka broke the agreement when it refused to sign a contract with CEZ for long term coal deliveries until 2055, which jeopardizes the power utility's plans to build a new 1.3GW plant in Pocerady. CEZ said that Mostecka signed the contract on the condition that state controlled CEZ pushed for the relaxation of the government's ecological limits set on mining the estimated 800 million ton deposits of coal in the territory of the coal miner.
Mr Tibor Bokor an analyst at brokerage Wood & Company said that “Chances that an agreement with Mostecka Uhelna will be reached seem low at this moment and the situation unclear, thus the stock might give back a bit of its recent gains.”
Mr Petr Hlinomaz an analyst at brokerage BH Securities said that “Renewal of CEZ's current coal units or their substitution with new units isn't dependent on lifting the mining limits.” He added that Mostecka is likely to lose this dispute because coal limits are not covered under the agreement. The dispute should have little effect on the CEZ stock.
CEZ has posted profit of CZK 28.756 billion and revenues of CZK 159,6 billion in 2006. Its market capitalization currently stands at some CZK 646 billion.
South Stream pipeline project open to other companies
RIA Novosti recently cited Mr Aleksandr Ryazanov deputy CEO of Gazprom as saying that the issue of other countries joining the project to build a natural gas pipeline across the Black Sea remains open.
Mr Alexander Medvedev deputy chairman of Gazprom said that "We have agreed with Eni that joining the project is open." He added that the possible participation of a Bulgarian company was desirable but that the form and extent of that participation remained subjects for discussion. Mr Medvedev said that third parties would be able to participate in the construction of land based stretches of the pipeline, while Gazprom and Eni would exclusively share equal stakes in the pipeline's underwater section.
He also said that the new project should not be viewed as an alternative to other international projects Gazprom is working on, but rather as a supplement to them. He added that all the necessary conditions for the project such as natural gas reserves, existing contracts with Italy and high demand for gas in Europe already existed.
He said the South Stream with an estimated annual capacity of about 30 billion cubic meters of gas along with the Nord Stream, Blue Stream and Blue Stream 2 is a united system of Gazprom exports.
Earlier on June 23rd 2007 the Russian energy giant Gazprom and the Italian gas company Eni SpA signed a memorandum on the construction of the South Stream gas pipeline which will stretch for 900 kilometers along the seabed of the Black Sea from Russia to Bulgaria reaching a maximum depth of over 2 kilometers.
