L&T and Outotec consortium to build sinter plant at TATA Steel Kalinga Nagar

Larsen & Toubro Ltd announced that a consortium of Outotec GmbH of Germany and L&T has bagged orders worth INR 1070 crore for supply & installation of sinter plant and other packages from TATA Steel for the 1st phase of TATA Steel’s proposed 6 million tones per annum integrated steel plant at Kalinganagar Industrial Complex of Duburi in Jajpur district of Orissa. This is scheduled for completion in 30 months.

The engineering procurement and construction contract for 5.75 million tones per annum is valued at INR 836 crores with L&T’s share being INR 623.30 crore.

The scope of work covers detail engineering, supply, erection & commissioning of mechanical, electrical & instrumentation systems along with the site services comprising of civil & structural works & sheeting works. Outotec Gmbh shall provide basic engineering, supply of proprietary equipment and performance guarantees.

L&T has also been awarded the contract for civil & structural steel works of steel melting shop valued at INR 233.59 crore. This is scheduled for completion in 28 months.

Chhattisgarh voices opposition to proposed iron ore policy

IANS reported that mineral rich Chattisgarh has voiced opposition to the recent recommendations for formation of mining policies on iron ore, which is not proposing any cap on iron ore exports.

Dr Raman Singh chief minister of Chattisgarh called for a phased ban on iron ore exports from India. He told IANS in an exclusive interview "It is surprising that the new draft mining policy has made no steps to contain exports of rare natural resources. The central government must impose a total ban on iron ore exports but in a phased manner.”

Dr Singh added that "It is a national crime exporting country's rare natural resources for building up the future of other nations at the cost of compromising our nation's industrial future. Since the country has limited reserved stocks of iron ore, it must be kept for the nation's future requirements rather than freely exporting it to countries like China which is just stockpiling our iron ore for its future needs.”

With about 20% of India's iron ore reserves, Chhattisgarh is one of the leading exporters of iron ore. India's largest iron ore producer and exporter in the public sector, National Mineral Development Corporation, mines the iron ore that is exported in the Bailadila hills in Dantewada district.

Indian iron ore prices on upward trend in China

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released on the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

USD per tonne
The change is with respect to the prices posted for previous week

The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

The China Chamber of Commerce of Metals, Minerals and Chemicals Importer and Exporter is the largest trading association in China.

TATA Metaliks’ ductile iron pipe project to start by 2009

It is reported that production from TATA Metaliks’ 110,000 tonnes per annum ductile iron pipe project being set up at Kharagpur in 51:49 JV with Japanese Kubota and Metal One is expected to commence by early 2009.

The facility is being set up at an estimated investment of INR 150 crore and will be called TATA Metaliks Kubota Ductile Iron Pipes.

Dr T Mukherjee chairman of TATA Metaliks said that the ductile iron pipes manufactured by the company would be marketed in India under the TATA Kubota Pipes brand even as pipes sold in the export markets would be under the Kubota Pipes brand.

He added that the demand for DI pipes was projected to grow at a compounded average rate of 18% annually and hence as part of a forward integration strategy, TATA Metaliks had embarked upon the project.

Bolivia and JSPL moving ahead on El Mutan project

Bolivian Prensa Latina reported that after six months of negotiations, Bolivian government and the Jindal Steel and Power Limited are now ready for the exploitation of iron ore in El Muntun deposits in Bolivia.

The report cites Mr Luis Alberto Echazu mining and metallurgy minister of Bolivia as saying that both parts negotiated several items including the new tax system, in order to write the final contract. Mr Echazu said that JSPL would only pay income taxes of 12.5% if it exports over USD 500 of sheet steel

Mr Echazu. added that they also discussed the need of an investment warranty ticket the foreign enterprise must give the government, which in five years period adds up to 45 million dollars and JSPL agreed to Bolivian rules in a situation of conflicts without turning to international arbitration entities.

Mr Echazu said that once the document is ready, it must be approved by Mr Evo Morales president of Bolivia and the leading board of El Muntun Iron and Steel Enterprise.

NTPC considering coal imports from Indonesia

It is reported that National Thermal Power Corporation Limited is eyeing imports up to 2 million tonnes of high grade coal annually from Indonesia and also looking at the possibility of picking up stakes in coal assets in Indonesia to secure firm supply arrangements.

A government source said that the proposed overseas foray for coal assets is part of its strategy to produce around 50 million tonnes of coal by 2017. As per reports, NTPC had earlier deputed 3 high level teams to Indonesia, South Africa and Australia to hunt for opportunities for investing in coal assets in these countries.

At present, NTPC has been resorting to importing coal from mainly Australia to tide over fuel shortages experienced at its coal based stations during much of the last fiscal.

NTPC, which has already begun aggressively pitching for coal blocks in India is now looking at bagging blocks abroad to diversify supply risks and also since foreign coal mines produce superior thermal coal with higher calorific value and lower ash content compared to the coal produced in India.

Orissa government not to change POSCO project site

It is reported that the Orissa government has made it clear that the mega steel project proposed to be set by the South Korean POSCO near Paradip in coastal Jagatsinghpur district would not be shifted to another new site.

Mr Manmohan Samal revenue minister of Orissa while responding to the opposition’s demand that the POSCO project site should be changed said that “The site has been selected after much scrutiny. We are committed to have the important project at the same site. There is no question of shifting the project to another site.”

Mr Samal added that the anti POSCO activists are rapidly losing their support base among the local villagers. He said that 90% of the 4000 acres of land identified for the important project belongs to the government and only 10% of the land is privately owned.

Mr Samal also told the assembly house that the Orissa government is not considering taking back its recommendation to provide SEZ status to the proposed steel project.

Earlier, members of the Congress led opposition demanded that the POSCO project be shifted to Gopalpur in southern Ganjam district.

Investigating team finds procedural lapses leading to explosion at Visa Steel

Statesman News Service reported that a 2 member high level team comprising of Mr Himanshu Sekhar Mohanty deputy director of factories & boilers and Mr Kamalendu Mohapatra assistant director of factories & boilers visited the Visa steel plant at Kalinga Nagar in Orissa to investigate the technical snags that caused the explosion leaving 24 persons injured.

The report cites Mr Mohanty as saying that “I inspected the plant and detected a problem in the blast furnace of the plant. Later, I gave the steel plant authorities a written direction, as per Section 40 of the Indian Factory Act to restart the blast furnace until it got a go ahead certificate from a competent authority.”

Mr Mohanty said that the explosion occurred when the furnace was being shut down for maintenance. He said “There are certain procedures to shut down a furnace for conducting maintenance, which were not properly implemented. The mishap occurred when the water bound clay layer slipped from the tube connected to the coke oven and blast furnace. A small pocket of combustible mixture formed in the blast furnace due to excess water and carbon monoxide.”

As per report, in the detailed report submitted by the team to the government, it is said that though the company authorities adopted the usual procedure, they did not implement it properly.

Visa Steel had entrusted the repairing work with Erects India and have now agreed to get the furnace examined through an expert. Mr Jagat Parija VP corporate of Visa Steel said “We would abide by the rules and if required, we will definitely go for another professional for the maintenance of the blast furnace. We will take the support of a consultancy that pioneered in globally in blast furnace maintenance.”

IFGL Refractories mixing unit sealed due to pollution

IFGL Refractories Limited announced that pursuant to a direction issued by the Orissa State Pollution Control Board, mix section of its Unit II was sealed on July 5th 2007.

The release added that IFGL is committed to abide by all statutory obligations including regulations relating to pollution control and has made appropriate submissions to OSPCB for removal of said sealing at the earliest.

It added that suitable steps have been taken to minimize adverse effect resulting therefore.

L&T bags two orders for substations from PGCIL

It is reported that Larsen & Toubro has secured an order for turnkey construction of 400/220KV extra high voltage substations valued at INR 200 crores from the Power Grid Corporation of India Limited.

The scope of work includes supply, erection testing & commissioning of 315 MVA transformers, 400KV reactors substation automation & protection system and total civil & air conditioning works.

One of these major substation is to be located at Gurgaon will be 400/220KV Gas Insulated Substations while the other Air Insulation Substations will be located at Bhinmal and Kankroli in Rajasthan and Zerda in Gujarat.

Larsen & Toubro Ltd has a long standing association with Power Grid Corporation of India Ltd in their various turnkey ventures involving transmission lines, substations & distribution and is currently doing more than 12 projects for Power Grid Corporation of India Ltd at various locations ECC.

7 EOI received for consultancy work for deep draught port in WB

It is reported that Mr AK Mohapatra union shipping secretary has recently called on Mr Buddhadeb Bhattacharjee chief minister of West Bengal and apprised him of the steps taken by the union government in regard to the proposal for setting up a deep draught port in West Bengal.

Mr Mohapatra said that 7 consortia of firms, in some cases foreign firms partnering with Indian firms, have responded to expressions of interest invited by the shipping ministry for the appointment of consultant for the preparation of the detailed project report for the proposed project.

He said that the selected consultant would also be responsible for the monitoring and supervising the implementation of the project and selection would be complete within the next 3 months to 4 months latest by 2007 end.

NTPC inks PPA with Maharashtra and Goa

It is reported that NTPC has signed power purchase agreements with Maharashtra and Goa for supplying electricity from its Barh plant in Bihar.

This is the first PPA signed by NTPC for supply of power from the second phase of its Barh plant, which is scheduled to be completed by 2012. Earlier NTPC had signed PPAs with Bihar and the Union Territories of Northern and Western region for supply of power from the first phase.

NTPC is setting up a thermal power plant in Barh district in two phases with a capacity of 1,980 MW and 1,320 MW respectively. The company will supply power to eastern western and northern regions from its Barh plant.

HZL raises zinc prices by 1.9%

India's top zinc producer, Hindustan Zinc Limited has increased zinc prices by 1.9% to INR 160,900 (USD 3,983) per tonne on weekend.

HZL has also raised lead prices by 0.8% to INR 134,400 per tonne.

ONGC to add 2,700 MW power capacity

It is reported that Oil & Natural Gas Corporation is planning to add about 2,700MW of gas based generation capacity for both captive and commercial use through 3 plants as under.

1. A 1,000MW gas based power plant at ONGC's special economic zone at Dahej in Gujarat to partly supply its petrochemical complex and its methane propane extraction plant in the zone.

2. Captive power plant at Mangalore to supply power to ONGC's upcoming petrochemical complex with an initial capacity of around 500 MW, which will later be increased to around 1,000 MW.

3. A 750MW gas based power plant in Tripura with the state government, which is entirely for commercial use. The Tripura plant is expected to be ready by 2008.

Adani may float MPSEZ IPO in September 2007

BL reported that Adani Group is now planning to open INR 1,500 crore initial public offering of Mundra Port and Special Economic Zone Limited in the first fortnight of September 2007. Earlier the IPO was originally slated to open in end July 2007.

The report cites a senior official of Adani as saying that “We think that with today’s interim injunction against the SEBI order, we can go ahead with the MPSEZL initial offer as per the terms and conditions. Since August is holiday in larger part of US and Europe, we are now planning to open the issue between September 1st and 15th 2007.”

Adani Group has filed the draft red herring prospectus with SEBI in March 2007. However, in its order in May 2007, SEBI had barred Adani Group promoters from entering the market for 2 years.

The proceeds of the issue would be utilized for the further development of the port and SEZ.

Mundra Port and Special Economic Zone is the logistics arm of Adani group and the rest of the businesses are under Adani Enterprises. Mundra Port is the first company from the SEZ and port sector to hit the capital market.

MMK to set up a new 2.1 million tonne CR complex

Magnitogorsk Iron and Steel Works announced that it has signed a contract agreement with SMS Demag for the delivery of equipment for the new cold rolling complex. The implementation of the project will take 36 months.

The equipment of the new cold rolling shop will include a continuous hydrochloric acid turbulent pickling line in combination with a 5 stand tandem cold rolling mill designed to produce 2.1 million tons per year, a 450,000 tonnes per year continuous hot dip galvanizing line, a 650,000 tonnes per year combined continuous annealing and hot dip galvanizing line. A rolls grinding and texturing shop, a strip inspection and slitting line packing lines for full hard and galvanized coils would also be installed.

The product range will comprise cold rolled coils weighing up to 43.5 tonnes in 0.28mm to 3.00mm thickness and 850mm to1880mm width. The project will allow to raise the share of cold rolled and galvanized steel in the total output of MMK broaden the range of steel grades produced, and supply premium quality cold rolled and galvanized sheet to automakers including HSLA, IF-HSS, BH, DP, MP and TRIP steels meeting the most stringent requirements for this kind of products.

MMK said that the necessity of commissioning new facilities for pickling, rolling, continuous annealing and finishing of cold rolled products has been prompted by increased demand for premium quality cold rolled steel, especially auto body sheet. Thus, the new complex using leading edge technologies and processes will produce top quality cold rolled and galvanized steel for the manufacture of exterior and interior automobile parts white goods and for the construction sector.

POSCO posts 55% YoY increase in Q2 profit

South Korean POSCO has reported that its second quarter profit climbed by 55% YoY as it raised prices to benefit from rising demand from carmakers and shipbuilders.

POSCO’s net income rose to KRW 1.11 trillion (USD 1.2 billion) in April to June 2007, the highest in eight quarters, from KRW 716 billion in April to June 2006. Its operating profit rose to KRW 1.25 trillion in April to June 2007 from KRW 941 billion in April to June 2006 as its sales rose by 25% YoY to KRW 5.82 trillion.

Mr Lee Dong Hee executive VP of POSCO said that POSCO would spend KRW 6.1 trillion to boost output this year and that it will raise output to 50 million tonnes by 2010 from 30.8 million tons this year.

POSCO cut KRW 369 billion in costs in the first half and said it expects to save as much as KRW 617 billion won for the year, 27% more than a previous forecast. POSCO has also revised this year's operating profit forecast by 7% to KRW 4.6 trillion and raised the sales target to KRW 22.7 trillion.

Evraz increases offer for Highveld Shares and time

Evraz Group SA announced extension of the offer period relating to the offer to acquire shares in Highveld Steel and Vanadium Corporation Limited.

Evraz following its announcement of June 4th 2007 on the offer to acquire shares in Highveld Steel and Vanadium Corporation Limited other than those currently held by Evraz and its announcement of July 4th 2007 on the extension of the offer period it has decided the following

1. To increase the consideration payable to Highveld shareholders from the ZAR equivalent (calculated as at the closing date in the manner explained in the circular posted to shareholders of Highveld dated June 4th 2007) of USD 11.40 per Highveld share to ZAR 93 which represents an approximately 15% increase to the previous offer price. Highveld shareholders who accepted the offer prior to this increase in the consideration will be paid the increased consideration.

2. To extend the offer till 1700 hour (South African time) on August 6th unless the date is extended by Evraz in its sole and absolute discretion, in accordance with the Securities Regulation Code on Takeovers and Mergers and any other applicable laws and regulations. All amended dates will be released on the Securities Exchange News Service of the JSE Limited over a UK Regulatory Information Service and in the press.

China’s H1 coal out put up by 7.1% YoY at 1.1 billion tonnes

China’s National Development and Reform Commission announced that Chain’s raw coal output in June 2007 rose by 7% YoY to 201.3 million tonnes.

According to preliminary statistics, China produced 1.1 billion tonnes of raw coal January to June 2007 period up by 7.1% YoY.

China exported 23.12 million tonnes of coal in the first half of 2007 down by 27.9% YoY.

China, the world's second largest energy consumer, has been slowing coal exports as rising domestic demand for power generation continues to eat up coal production. Coal fuels more than 70% of the country's power plants.

IPSCO Shareholders approve arrangement with SSAB

At a special meeting of IPSCO Inc, shareholders voted to approve the Plan of Arrangement whereby SSAB Svenskt Stål AB will acquire all of the outstanding shares of IPSCO. Approximately 99% of the votes cast by shareholders was in favor of the transaction.

IPSCO and SSAB have received all regulatory approvals that are a condition to the completion of the transaction. The completion of the arrangement remains subject to the approval of the Ontario Superior Court of Justice and the satisfaction of certain other conditions. IPSCO and SSAB expect the transaction to be completed on July 18th 2007.

ISPCO and SSAB entered into an agreement on May 3rd 2007 providing for IPSCO to be acquired by SSAB for USD 160 per share in cash for a total equity value of approximately USD 7.7 billion.

IPSCO is a leading producer of energy tubulars and steel plate in North American with an annual steel making capacity of 4.3 million tons. IPSCO operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The Company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe and large diameter transmission pipe. Additionally, IPSCO is a provider of premium connections for oil and gas drilling and production.

SSAB is a Swedish based publicly traded corporation with a leading European position in Quenched & Tempered heavy plate and EHS/UHS steel sheet. The Group comprises four divisions: Division Sheet and Division Heavy Plate are the steel operations with steel shipments of 3.1 million tonnes in 2006, Plannja is a processing company in building products, and Tibnor is the Group's trading arm supplying a broad product range of steel and metals. The Group has sales revenues of almost USD 4.6 billion. SSAB has 8,800 employees and has operations or offices in over 40 countries and a worldwide sales presence.

Nucor and SeverCorr trade secrets case headed for trial

Platts reported that an ongoing lawsuit filed by Nucor against SeverCorr and one of its top executives Mr John Bell for theft of trade secrets is headed for trial in US District Court at Charleston in South Carolina. The lawsuit, filed by Nucor in October 2006, has now run through scores of motions and depositions. A jury trial was recently set for August 28th 2007.

Mr Bell, now an executive VP at SeverCorr, who serves as the operations manager, worked for Nucor from 1987 until early 2006. He started as melt shop manager at Nucor Yamato. He was later involved in the startup of several Nucor mills, including the company's Nucor-Berkeley facility and was substantially involved in decisions regarding the design, layout, and operation of Nucor mills, according to court documents. In 2004 he was appointed general manager of steel making technologies for Nucor, a position he held while simultaneously acting as melt shop manager at Nucor-Berkeley.

Nucor has charged that Mr Bell, within days of his departure from the company, downloaded and copied highly confidential documents belonging to Nucor and later solicited at least three Nucor employees to join him at SeverCorr in violation of confidentiality agreements signed by Bell when he left Nucor at the end of March 2006. Many of the more recent court documents filed in the case to date revolve around Mr Bell's knowledge of a proprietary vacuum degasser he was instrumental in developing for Nucor-Berkeley. SeverCorr's mill is designed to use twin tank vacuum degassers on its EAF, Nucor notes in its court filings.

SeverCorr has nearly completed its steel mini mill at Columbus in Mississippi. The 1.25 million short ton per year SeverCorr mill, majority owned by Severstal NA and headed by former Nucor CEO Mr John Correnti, will produce flat rolled steel for the automotive and appliance sectors.

ArcelorMittal opens research lab in East Chicago

It is reported that ArcelorMittal has opened its new 22,000 square foot research laboratory in East Chicago in US on July 13th 2007 to supplement its R&D activities for auto grade steel in US. ArcelorMittal’s new facility includes about 10 labs, including labs for welding, corrosion, forming and dent testing as well as one that will prepare products to be tested.

Mr Greg Ludkovsky leader of ArcelorMittal's research and development department said that the East Chicago research lab remained open because it made money for the company throughout the bad times. He added that “The USD 4.2 million expansion symbolizes the steel industry's renaissance. It is a great day for us. You stood behind us in good times and bad times."

Mr Bob Holt VP marketing of ArcelorMittal said that "Without new products, our business will become stale. The research department is absolutely essential to the success of our company."

Until the new lab was built, ArcelorMittal's property at 3001 E Columbus Drive in East Chicago featured a 105,750 square foot research and development facility for about 40 years.

SDI ships first order of welded rails from Columbia rail mill

Steel Dynamics Inc announced that it has made its first shipments of welded rails from its recently completed rail welding operation at Columbia City in Indiana state of USA. This is the first commercial use of the new rail welding facility located on the site of SDI's Structural and Rail mill. The shipments consisted of 81 rail strings, each of 1,360 feet in length. Each rail string resulted from welding together seventeen 80 foot rails. The rail strings were then transported by two rail trains of specially outfitted flat bed railcars and delivered to an industrial site in southern Indiana.

Mr Paul Kotsenas sales manager for rail products of SDI said "Our state of the art rail welding facility provides additional value for railroad applications requiring welded rail strings up to 1,600 feet in length. While this initial shipment involved welding 80-foot rail segments, we look forward to early next year when we expect to produce and utilize our own 240 foot to 360 foot rails, which no one else in North America produces, to fabricate long rail strings. Continuous welded rail strings provide the railroads with numerous benefits in the installation and maintenance of their right of ways. By reducing the number of individual rails and the number of welds utilized in a mile of track, railroads can significantly reduce the probability and frequency of track weld failures and reduce overall track maintenance costs."

SDI's new rail welding facility's rail spurs, buildings, and run out beds extend more than one half mile across company owned property to the west of the Columbia City mill. The facility includes holding and staging tables that have the capacity to store more than a trainload of finished strings. Rail spurs are in place to deploy two long continuous welded ail trains for staging and loading. More than a mile of new rail spurs was installed at the site to support the operation. The cost of the rail-welding facility was about USD 5 million. After a ramp up of rail production, SDI expects to be able to supply about 300,000 tons of rails per year from the Columbia City mill to help meet North American railroads' growing demand for rails.

Mechel commissions new equipment at Beloretsk Plant

Mechel OAO has announced the commissioning of new equipment for production of rope, fastener and fiber wire at Beloretsk Metallurgical Plant as well as the foundation laying of a new steel wire rope complex. Mr Murtaza Rakhimov president of the Republic of Bashkortostan, Mr Igor Zyuzin CEO of Mechel and Mr Vladimir Polin management officer & GD of Mechel had attended the official ceremony for opening the new equipment.

The equipment has been manufactured by leading German manufactures of industrial equipment Ernst Koch. The project investments amounted to more than RUB 80 million (USD 3.1 million). It is aimed at improving product quality, increasing output, reducing production costs and increasing profitability.

The official ceremony also included the foundation laying of a new steel wire rope complex, which has the planned production capacity of 150,000 tonnes of high quality ropes and hardware a year. The construction is expected to be completed in 2010.

The two new production lines will enable Mechel to increase the output of rope wire and thin ropes, wire for fasteners and fiber wire at Beloretsk Metallurgical Plant. The capacity of the lines can reach 27,000 tonnes per year depending on the product range.

Mr Vladimir Polin said that "The program for technical development of BMP, which includes the construction of a new steel wire rope shop, opens a new era of quality at the plant, which has a 245 year history. It is aimed at the plant's long term development, strengthening its leading position as a hardware producer and increasing hardware output by 1.5 to 1.7 times current levels by 2011."

Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.

TKC Steel Corp acquires Treasure Steelwork

It is reported that Philippine based TKC Steel Corp has acquired the 96% equity of Iligan based Treasure Steelworks Corp for PHP 96 million. Absolute deeds of assignments of shares were signed by previous Treasure shareholders on June 29th 2007.

Billions Steel International Ltd, a corporation existing under the laws of the Republic of the Mauritius and Makati based SYL Holdings Inc transferred their rights and interests in Treasure Steelworks to TKC Corp. With the sale of their shares, Billions Steel and SYL Holdings each ceded a 48% stake in Treasure. Stockholder Dominador Yap holds 4% of Treasure.

Incorporated in February 23rd 2005, Treasure has an authorized capital stock of three million shares worth PHP 300 million. Subscribed and paid in by investors amount to PHP 100 million. Treasure Steelworks operates its billet plant in a 20 hectare area in Brgy Maria Cristina area of Nonucan in Iligan City of Philippines. Its products are principally used by rebar manufacturers.

Ms Ma Hazel L Rabara corporate information officer of TKC Steel Corp said "The business potential of Treasure, currently the largest billet plant in the Philippines with a current capacity of 300,000 tonnes per annum, cannot be sufficiently emphasized. It is expected to produce 188,000 tonnes of steel billets by the end of 2007.”

Ms Rabara added that Treasure's output is expected to reach 264,000 tonnes with sales growing to PHP 6.6 billion. She said "Given this production capabilities of Treasure, TKC intends to maximize revenue generation by undertaking the marketing and sales of all the billets manufactured by Treasure.”

Treasure has a PHP 500 million capital expenditure program to be completed in the second quarter of 2009. Some PHP 50 million will be spent for the scrap processing equipment to reduce production cost and improve production efficiency and meet quality standards. PHP 450 million will be equally divided for ladle furnace to increase production, rehabilitation and conversion of two operating EAFs or electric arc furnace and port improvement and expansion.

Aurox inks 15 year sales agreement with RockCheck Steel

Bloomberg reported that Perth based company Aurox Resources Ltd signed a 15 year iron ore sales agreement with closely held Chinese steel mill RockCheck Steel Group Company.

Aurox Resources in a statement said that the agreement will allow Aurox to double the size of its Balla Balla iron ore project to 6 million tonnes a year.

Mr Charles Schaus MD of Aurox Resources said the agreement will cement Aurox's position as a key participant in the Pilbara iron ore region.''

Aurox had also signed a 3 million tonnes agreement with Chengde Iron & Steel Group Company in March 2007. Chengde Iron & Steel and China Metallurgical Group Corp signed an accord in September to acquire a 30% stake of Balla Balla's vanadium operation and 51% of the iron ore operation.

Hyundai Steel orders for 3 slab casters for Dangjin Works

Siemens Metals Technologies received an order from Rotem, a company of the Hyundai Motor Group, for the supply of three 2 strand slab casters for the new integrated iron and steel works project of the Korean steel producer Hyundai Steel Company. The three casters will be installed at the steel producer's Dangjin Works and are scheduled for start up in late 2009.

Siemens will supply its continuous casting technology and the related engineering and key components for three 2 strand slab casters, which will be installed at the Dangjin plant site. These will have a combined annual casting capacity of 8.4 million tonnes of steel. The slabs will be cast in thicknesse of 225mm and 250 mm and at widths ranging from 800mm to 2,200 mm. The cast steel grades will include ultra low carbon to high carbon steels as well as micro alloyed steels. These will be rolled to coils, which will be primarily used, in the automotive industry of the Hyundai Motor Group and also in the household appliance industry. Steel, which will be rolled to plates will be used in shipbuilding.

Hyundai Steel Company is Korea's largest electric steel producer and the second largest electric steel producer in the world. At three production sites in the Republic of Korea the company currently produces a total of approximately 11 million tonnes of steel per year comprising carbon steel products, including reinforcing bars, angles, channels, wide flange beams, rails, coils and sheets, and stainless steel products, including cold rolled sheets and coils.

Cape Lambert shareholders approve 70% stake sale to Mr Ding Liguo

Cape Lambert Shareholders gave unanimous support to the part sale of Cape Lambert Iron Ore Project to Mr Ding Liguo for approximately AUD 250 million in cash in an extraordinary general meeting thus satisfying the final condition precedent for the sale agreement. Cape Lambert Iron Ore Limited will now move to finalize the partial sale of its 100% owned Cape Lambert Iron Ore Project, located in the Pilbara region of Western Australia.

Mr Tony Sage ED of Cape Lambert said “This is one of the biggest transactions in the life of Cape Lambert Iron Ore. The company will receive approximately AUD 250 million for selling 70% of the project. Our shareholders have provided overwhelming support to this transaction, they realize that this will provide the impetus and more importantly the financial capability for the company to grow into a leading iron ore exploration and development company. Importantly we will retain a significant stake in the project and play an important part as this project develops towards production. We believe this project will be significant in terms of the scale of the project and what it will provide the state, and are pleased to have retained an interest in it.”

On March 27th 2007, Cape Lambert announced it had entered into a sale agreement with Mr Ding Liguo to sell 70% of the Cape Lambert iron ore project for approximately AUD 250 million in cash. Under the terms of the sale agreement Mr Ding Liguo will pay Cape Lambert 30% of the sale price at settlement of the transaction, which is likely to be August 2007, with a further 55% of the sale price being paid three months after that date. The final installment, being 15% will be paid on completion of the BFS and commencement of construction.

South Korea steel export to rise to by 12.8% YoY in 2007

It is reported that South Korea's exports buoyed by strong sales in automobiles steel and shipbuilding are expected to reach USD 367 billion in 2007.

The Korea ministry of commerce industry and energy said that the revised estimate represents a 12.8%YoY gain from 2006 when exports topped USD 325 billion and forecast that overall export volume will grow USD 7 billion more than January estimates when export growth for 2007 was forecast at 10.6%.

Mr Cha Dong hyung head of the ministry's export import team said that "The good showing is a sign that exports were not seriously hurt by unfavorable exchange rates but helped by steady gains in the world economy that may grow 4.9% in 2007". He added that higher value added products made by South Korean companies improved brand recognition while successful overseas market diversification also contributed to the upbeat forecast.

Mr Cha said that while export growth from January to June 2007 soared to 14.7% and is forecast to dip to 11.2% in the second half whereas imports could rise by 13.9% on an annual basis to USD 352 billion with the country's trade surplus reaching USD 15 billion down by roughly USD 2 billion from 2006.

Philippines miner to register sales contracts with government

According to Philippine department of environment and natural resources, foreign miners in the Philippines will have to clear their sales contracts with the government to ensure proper tax returns.

Mr Angelo Reyes secretary of environment said "We want to be sure that the government knows and is made aware of and is informed on what is sold at what price and to whom. This is crucial because price determines aside from volume gross revenue, how much excise tax will be collected and how much income tax will be collected. We want to be reasonably certain that government interest is protected here."

Philippines is reliant on foreign investors to revive its once mighty mining sector but the government is also under pressure to improve tax revenues after admitting it probably missed its first half budget deficit goal due to weak tax collection.

Despite record metal prices there has yet to be a major overseas investment in the Philippine mining sector owing to legal uncertainties and influential opposition from the Catholic Church.

US weekly steel production up by 1.7 % YoY

American Iron & Steel Industries reported that in the week ending July 14th 2007, US’s raw steel production was 2.124 million net tons while the capability utilization rate was 89.8%. Production was 2.087 million net tons in the week ending July 14th 2006 while the capability utilization then was 88.7%. The current week production represents 1.7% YoY increase from the same period in 2006.

Production for the week ending July 14th 2007 is up by 1% from the previous week ending July 7th 2007 when production was 2.102 million net tons and the rate of capability utilization was 88.8%.

Adjusted YTD production through July 14th 2007 was 56.437 million net tons at a capability utilization rate of 84.1%. That is a 6.3% YoY decrease from the 60.285 million net tons during the same period 2006 when the capability utilization rate was 90.2%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Malaysian tin price rebounds on strong buying last week

Platts reported that the average Malaysian tin price on the Kuala Lumpur Tin Market last week halted the downward trend seen in the previous week and rebounded further above USD 14,000 per tones. The price rose to USD 14,115 per tonnes up by USD 91 from previous week.

Despite the firmer average price, a Kuala Lumpur Tin Market source said the price was fairly weak. The source added that "The price on was an upward trend early this week but lost momentum on Thursday and began to slip." He added that the Kuala Lumpur Tin Market price was currently in line with steady tin prices on the London Metal Exchange, which were above USD 14,000 per tones.

The Kuala Lumpur Tin Market price climbed to USD 14,130 per tones from USD 14,100 per tones on strong buying interest on firmer tin prices on LME. It continued to rise to USD 14,180 per tones but lost the upward momentum and slipped to USD 14,130 per tones on weaker LME tin prices. The price which was under pressure from buyers, failed to reverse the downward trend and fell further to USD 14,035 per tones.

Anshan to supply X70 steel got for Sichuan Project

It is reported that Chinese steelmaker Anshan Steel has got its biggest ever contract from Sichuan West China Gas Pipeline Project. Anshan Steel has bagged the latest contracts from the project, for the fourth consecutive time, for supply of 32,000 tonnes of steel in October 2006.

The CNY 63.2 billion Sichuan West China Gas Pipeline Project comprises of exploration of Puguang Gas Field and 1700 kilometers long gas pipeline from gas filed to Shanghai. The pipeline requires 17.5mm thick steel in X70 grade.

(Sourced from MySteel.net)

Highveld recommends revised offer of Evraz

Reuters reported that South Africa's Highveld Steel and Vanadium has recommended its shareholders accept a takeover offer from Evraz Group after Evraz raised its offer. Highveld had earlier advised minority shareholders to reject that offer.

Highveld said in a statement Evraz had raised its offer to ZAR 93 per share compared to a previous offer of USD 11.40 or ZAR 82.99 at June 20 exchange rates.

Evraz already owns 54.1% of Highveld.

Tenova gets acceptance certificate for furnace at san Nicolas plant of Ternium

After the successful completion of commissioning and testing period, the Final Acceptance Certificate for the slab reheating Furnace no 5 at the Ternium steel plant in San Nicolás in Argentina was obtained by Tenova LOI Italimpianti. The furnace is integrated with the 4 existing pushers furnace guaranteeing full coverage of production capacity together with significantly higher quality, reliability and flexibility.

The new furnace features latest technologies including that the combustion plant combines reduced consumption and extremely low emissions with a reheating quality at today’s highest levels. With the new plant, the reheating capacity of the rolling mill will rise from 400 tonnes per hour to 700 tonnes per hour.

The contract for engineering work and supply of the advanced technology plant components was awarded to former Techint Technologies Furnaces Business Unit based at Genoa in Italy, now Tenova LOI Italimpianti, which completed the project on schedule. The contract also covered support for plant installation, testing, start up, and related services.

Tenova, former Techint Technologies, designs and supplies advanced technologies, products and services for the metal and mining industries. Tenova operates close to its customers through a network of 20 companies based in 14 different countries.

Pakistan steel industry rejects 3 new taxes

Pakistan’s Dawn has reported that Pakistan steel industry has rejected three new taxes 20% sales tax deduction, 3.5% income tax and 1% excise duty on the sale of finished products to non corporate sector and demanded of the Federal Board of Revenue review of its policy of overtaxing simply to meet the revenue collection target.

Sources said a delegation of steel industry held a meeting with Mr Abdullah Yusuf chief of Federal Board on July 7th 2007 and strongly protested against the new taxes. The members said that 20% sales tax deduction and 3.5% income tax on sale of finished steel product for non corporate sector were unacceptable as these taxes would not only add to the cost of the construction and housing industry but would also make the steel sector on the whole a hostage to taxation.

The delegation members reminded Mr Abdullah that the steel sector had accepted fixed sales tax of PKR 3800 besides PKR 617 duty in good faith to contribute to revenue and after reaching the agreement unfolding of the new taxes made no sense. They added that after huge fixed taxes steel sector could not accept other new taxes.

The member said if the taxes formula were accepted as it is, it would make the steel sector liable to 6 types of different taxes. These included
1. PKR 3800 fixed sales tax on melting
2. PKR 617 income tax at melting stage at finished stage
3. 20% sales tax deduction
4. 3.5% income tax for non corporate sector
5. 1% excise duty
6. 1% withholding tax.

The member added that the way the steel sector has been taxed in the budget 2007-08 indicates that the government's only concern is revenue collection and nothing else. It also shows that the government did not feel shy to repeat the same tax for the same industry at different stages. Massive taxation of steel sector has developed a feeling of being cheated in the budget. The two sides are continuing dialogue to find out an amicable solution to the thorny issues of taxes and they are likely to meet again sometime this week.

Shenhua Energy eying overseas coal assets

Bloomberg reported that China Shenhua Energy Company Limited is studying opportunities to buy and develop coalmines in several countries to increase output.

Mr Huang Bing GM of Shenhua capital operations unit while speaking at the East Asia Investment Forum 2007 said that the company is examining prospects in Indonesia, Australia, Vietnam and Mongolia.

He added that “Chances lie in the existing mines in Indonesia and Australia and the developments of new mines in Vietnam and Mongolia. We are studying opportunities of overseas expansions in these countries.”

But Mr Huang said that Shenhua hasn't reached any agreements on overseas acquisitions.

Coal producers in China are increasing capacity to meet growing demand for the fuel from power companies. China burns coal to generate 78% of its electricity. China is the world's largest energy consumer, after the US.

OMK Vyksa plant to start production of pipes for Nord Stream subsea section

Russian pipe major OMK is preparing for the commercial production of large diameter pipes for the subsea section of the Nord Stream project. Since its Vyksa Steel Works joined the project it has produced and delivered over 250,000 tonnes of large diameter pipes for the gas pipeline construction.

Mr Vladimir Markin president of OMK said that "We've done a lot in this very area of work for a year. In April, our company received certification to DNV OS F101 of Norway based Det Norske Veritas and the Nord Stream project specifications. OMK became Russia's and the CIS's first DNV OS F101 certified producer of pipes for subsea pipeline systems."

Mr Markin added that success in the bidding related to the subsea section would be another milestone in the company's history. The company was declared the preferred bidder for the supply of pipes under the Sakhalin 1 and Sakhalin 2 projects of Shell and ExxonMobil and was the only Russian supplier of main pipes. This year, VSW plans to invest RUB 1.4 billion in the upgrading of its 1,420 mm pipe production line. A total of RUB 4.9 billion will be invested in the upgrading of the LDP production facilities.”

United Metallurgical Company is one of Russia's largest producers of pipes, railroad wheels and other metal products for energy, transport, and industrial companies. OMK comprises six largest enterprises in the metallurgical sector. Its Vyksa Steel Works increased large diameter pipes output by 43%YoY in January to June 2007 period. Its output reached to 532,481 tonnes as compared to 373,409 tonnes for the H1 of 2006. In June 2007 alone VSW produced 88,004 tonnes of large diameter pipes or up 13%YoY.

Heidtman Steel orders for multi blanking line

It is reported that Heidtman Steel Products Inc has awarded SMS Demag Limited an order for a new multi blanking line to be installed at its steel processing center at Butler in Indiana USA.

The new line will feature SMS Demag’s development of the CNC slitter head. The CNC slitter head provides several advantages such as sequenced production of similar coils, less offline setup labor, less tooling and less spares since only one slitter head is required.

This line will process material from 0.010 inches to 0.135 inches thick coils 72 inches wide, weighing up to 80,000 lb and will run at various speeds utilizing the operation mode of the flying shear.

Anglo American and MMX proceed in Minas-Rio transaction

MMX Mineracao e Metalicos SA announced that Centennial Asset Mining Fund LLC owner of substantially all of the shares of Centennial Asset Participacoes Minas Rio SA on July 13th 2007, effected the sale of 100% of the shares owned by it in Centennial Minas Rio by means of an auction on the Bovespa Sao Paulo Stock Exchange for a total price of BRL 1.31 billion.. The auctioned shares were purchased by Anglo American Participacoes em Mineracao Limited a wholly owned subsidiary of Anglo American plc.

Upon settlement of the Exchange Transaction, which should occur on July 18th 2007, in accordance with the Bovespa rules, Anglo American will subscribe for new shares of MMX Minas Rio Mineracao SA and LLX Minas Rio Logistica SA with a capital contribution of USD 874.34 million which will increase its ownership interest in MMX Minas-Rio and LLX Minas-Rio to 49%. Also upon settlement of the transaction, MMX and its subsidiaries will enter into a shareholders' agreement with Anglo American and Centennial Minas-Rio, in its capacity as a wholly owned subsidiary of Anglo American plc, with respect to the corporate governance of the Minas-Rio Companies.

Upon closing, the parties will also enter into other ancillary agreements that will include a technical services agreement with an affiliate of Anglo American, whereupon the Minas-Rio Companies will have access to Anglo American's global technical and mining intelligence, and a corporate services agreement with MMX, for the provision of special, general and administrative services.

Also in the context of this transaction, MMX, it’s wholly owned subsidiary LLX Logistica SA and Anglo American agreed to restructure the reorganization of the Minas-Rio Companies. Hereafter MMX Minas-Rio will be responsible for building and operating both the iron ore mines at Minas Gerais and the MMX Minas-Rio System slurry pipeline, and LLX Minas-Rio will be responsible for building and operating the Port of Acu, exclusively for handling and servicing iron ore products.

Also in accordance with the documents that will be executed on closing, the parties have agreed that LLX Acu Operacoes Portuarias SA a subsidiary of LLX Logistica SA will have access to the Port of Acu and its infrastructure to build and operate its third party logistics and port handling business, by paying a per vessel per tonne fee to LLX Minas-Rio. LLX Acu will have the right to expand the Port of Acu, as will be agreed from time to time with LLX Minas-Rio and will have the right to carry out its port operations at the Port of Acu, while the shipment of iron ore from the Port of Acu will enjoy first priority rights.

Mr Eike F Batista chairman & CEO of MMX said that "The consummation of the transaction with Anglo American will mark the beginning of a very promising joint venture. We hope and intend to grow the MMX Minas-Rio System to its fullest capacity, by leveraging its geological and geographical aptitudes. MMX and Anglo American together will provide the perfect platform for growth in the region. Also, the closing of this transaction will forge the path for the development of LLX's independent business."

US Steel seamless tube mill to install rotary furnace

It is reported that A 1 Welding and Fabrication on East 32nd Street in Lorain has just finished constructing a rotary hearth furnace for installation at seamless mill number three at US Steel in Lorain.

Mr Ken Balko owner of A 1 Welding and Fabrication of said that 15 workers have been working on the project for several months, which has a diameter of more than 100 feet.

Mr Balko said once installed, it will slowly rotate to evenly heat steel to be processed in the mill, which manufactures seamless steel pipe.

Balko's firm made a similar rotary hearth furnace in the early 1980s for US Steel's number four seamless mill in Lorain.

LionOre announces board changes

Following the announcement that Norilsk Nickel has bought LionOre Mining International Ltd Company, there has been a change in the board of directors. Following the request of LionOre, each of the members of the board of directors with the exception of Mr Ted Mayers who has resigned as CFO, has agreed to remain on the LionOre Board.

The new board members nominated by Norilsk Nickel are
1. M Ralph Morgan deputy GD and member of the board of Norilsk Nickel
2. Mr Thomas Rogers director for business development of Norilsk Nickel
3. Mr Andrey Zhupanov international general counsel of Norilsk Nickel.

Mr Morgan will serve as chairman of the board

Norilsk Nickel, which is the world's largest nickel producer, recently bought 90% of the LionOre's shares. Norilsk Nickel made an improved offer equal to USD 6.4 billion for the company on May 23rd 2007 offering around 10% more than Xstrata.

LionOre is an international gold and nickel producer with operations in Australia, Botswana and South Africa.

US Steel announces 2 key management changes

United States Steel Corporation has announced two key management changes. Mr David J Rintoul has been named GM of Granite City Works in Illinois succeeding Mr Michael A Fedorenko who has been appointed GM of engineering. Both appointments are effective July 16th 2007.

Mr Fedorenko will be responsible for overseeing engineering projects at all of US Steel's domestic operations and will report to Mr Anthony R Bridge VP engineering and technology.

Mr Fedorenko graduated from the University of Pittsburgh in 1976 with a bachelor's degree in mechanical engineering and began his career with US Steel that same year. He advanced through a series of engineering positions at operations in Pennsylvania and Ohio and in 1986 he moved into the purchasing department at the company's headquarters in Pittsburgh. In 1988 he was promoted to manager of purchasing at Fairless Works near Philadelphia. Mr Fedorenko was transferred to Fairfield Works in Alabama in 1990, where he served as manager engineering. In 1996, he was named senior area manager sheet products and in 1998, he was named division manager utilities, shops and services. He returned to Pittsburgh in 2000, when he was named plant manager of Mon Valley Works' Irvin Plant. In September 2003, Mr Fedorenko was named VP technology at US Steel Kosice and in March 2005 was appointed VP & GD US Steel Serbia and affiliated companies. He was named GM Granite City Works in May 2006.

Mr Rintoul will manage the day to day operations of Granite City Works at US Steel's integrated steel making operation near St Louis. He will report to Mr George F Babcoke VP of plant operations.

Mr Rintoul began his steel making career in 1979 in plate and strip rolling and finishing operations at Algoma Steel Corporation in Sault Ste Marie at Ontario where he rose through increasingly responsible assignments to the position of superintendent. In 1993, he joined Rouge Steel Corporation in Dearborn at Michigan as superintendent of cold mill. Mr Rintoul moved to Acme Steel Company at Riverdale Illinova in 1995 as manager of hot strip mill at the company's Compact Strip Plant. He became GM of Compact Strip Plant in 1997 and GM of steel manufacturing in 1999 a position he held until he was named VP of operations at North Star BlueScope Steel in 2001. In 2005 he became VP of operations at BlueScope's Butler Manufacturing Company in Kansas City at Mo his most recent position before joining US Steel.