POSCO to quit India if project does not materialize soon

FE reported that during a recent interview Mr Soung-Sik Cho MD of POSCO India expressed optimism about its proposed steel project in Orissa, despite the prevailing situation, by saying that both the state and central governments will pilot the project to execution smoothly but cautioned that POSCO would drop the project if it does not material soon.

During the interview, Mr Cho told Mr Dilip Bisoi of FE that “The project is progressing slowly, rather slower than expected. The project has been delayed by six months. I am disappointed, but I am hopeful that this would end.”

While answering a question about his confidence level for starting the project work by October 2007 Mr Cho said “The next two to three months are very crucial. The prospecting license for the Khandahar iron ore mines and forest clearance for the project site are expected in the next few months. Once these issues are settled, we will go ahead with the land preparation. If everything goes according to plan, we will procure equipment for the steel plant by the second half of next year.”

Mr Cho concluded that starting of the peripheral work at the site by October 2007 is very essential and said “We believe this project can materialize. If there are no signs of that, we will go back.”

POSCO signed the MoU with the Orissa government in June 2005 to set up a 12 million tonne steel plant with an investment of USD 12 billion and has been spent INR 120 crore so far, but the project is still to take off due stiff resistance by displaced people against land acquisition, delays in obtaining statutory clearances and iron ore linkages.

VII shareholders vote against Natsteel offer for Vinausteel and SSE

It reported that Vietnam Industrial Investments, which is listed on Australian Stock Exchange, informed the authorities that the resolution on the sale of its Vinausteel and SSE Steel to TATA Steel’s Singapore based NatSteel was lost on a poll vote by shareholders at its annual meeting on June 29th 2007.

As per the release, the results of the adjourned AGM in respect to resolution 3 for approval sale & purchase agreement are as under

Total number of proxy votes exercisable by all proxies validly appointed: 64,996,858 Total number of proxy votes in respect of which the appointments specified that the proxy
(a) is to vote for the resolution 25,995,226
(b) is to vote against the resolution 39,001,632
(c) is to abstain on the resolution Nil
(d) may vote at the proxy’s discretion Nil

Total number of votes cast on the poll
(a) In favor of the resolution 25,995,226
(b) Against the resolution 41,988,632
(c) Abstaining on the resolution Nil

TATA Steel announced in March 2007 that NatSteel would acquire 100% stake in a 250,000 tonne bar & wire rod mill of SSE Steel and 70% in Vinausteel, which produces 180,000 tonnes of reinforcing bars. The transaction was to be completed by June 2007. But, Prudential Vietnam Securities Investment Fund Management Company launched an unsolicited offer of USD 13.3 million, 10.65% higher than NatSteel’s, to acquire a majority stake in the two companies in May 2007.

As this would have amounted to a breach of contract with NatSteel’s earlier sale and purchase agreement, Vietnam Industrial Investment’s independent directors had recommended that shareholders vote on NatSteel’s sale and purchase agreement and not that of Prudential.

Anti POSCO factions readying for confrontation

Kalinga Times reported that The POSCO Pratirodh Sangharsh Samiti, the organization spearheading the mass movement against POSCO’s steel plant project in Orissa, alleged that POSCO in nexus with local police and local administration has unleashed a reign of terror on the anti POSCO activists.

Mr Abhay Sahu chief of POSCO Pratirodh Sangharsh Samiti warned that "We are readying ourselves to counter the perceived threat on our lives and property. There have been attacks on those carrying out the resistance movement. We are receiving threatening phone calls. Neither will we spare an inch of land nor we will spare the rowdy people who were harassing the peace loving people of this agrarian belt.”

Mr Abhay Sahu added that “In fact, they had attacked anti POSCO activists and hurled bombs in past to terrorize the opponents of the project. Growing popular base of the resistance movement made them panicky and instructed by the local administration, they fled from the village.”

Mr Sahu charged that "Over 460 opponents of POSCO project have been implicated in false cases since the movement to resist displacement was launched after the signing of the memorandum of understanding between POSCO and the State government. I am alone facing 62 criminal cases. This is the price we are paying for waging a war against arbitrary grabbing of land of unarmed people. Those supporting the project are going scot free despite breaking law on several occasions. Not a single case has been registered against the pro POSCO troublemakers.”

Under this situation, coming days are looking ominous with anti POSCO faction readying for confrontation with pro POSCO faction.

Orissa not in favor of exporting minerals

Mr Padmanava Behera Steel and Mines minister said in the state assembly that Orissa government does not favour export of minerals, particularly iron ore, from the state and will like to conserve this wealth keeping in view the state's future requirement.

Mr Behera said while replying to the debate on the budgetary demand of his department that the government is not in favour of export of minerals from the state and it has to be reduced gradually. He said there should be no apprehension that the iron ore deposits in the state would get depleted soon because of the large number of steel projects coming up in Orissa.

Mr Behera said "As many as 46 MoUs had been signed with different companies for establishment of steel plants. It was a dream for the state's leaders to have a second steel plant in Orissa after Rourkela, but this government has been successful in attracting so many steel companies, of which 25 had already reached different stages of production. He said the secret behind the flow of investment is simple where the government made it mandatory for the companies to add value to the minerals in Orissa which paved the way for investors to sign MoUs for setting up their units here."

Mr Behera while addressing the apprehension that there would be no minerals left for future generation if all the MoUs were implemented, the government had not accessed the total minerals reserve of the state. He said Iron ore deposits in the state had been explored up to 25 to 30 metres depth and the government planned to go for deeper explorations, which might make it necessary for upward revision of the estimated deposit.

Villagers say no to Sterlite’s steel plant in Orissa – Report

SNS last week reported that the villagers of 4 panchayats Mahadeijoda, Raisuan, Danardanpur and Nuagaon in Orissa do not want to part with the fertile land and are strongly opposing Sterlite Iron and Steel Company Limited’s proposed INR 12,500 crore steel plant over 3378.01 acres of these panchayats as it would destroy the fertility of the land.

Sterlite Iron and Steel Company Limited plans to take 547.14 acres of government land & 892.03 acres of private land from Mahadeijoda grama panchayat, 315.5 acres of government land & 542.74 acres of private land from Raisuan gram panchayat, 65.93 acres of government land & 248.34 acres of private land from Danardanpur gram panchayat and 288.61 acres of government land & 474.72 acres of private land from Nuagaon panchayat.

As per report, the district authorities have tried to drive home all the plus points of this project but the villagers feel that minus points outnumber plus points. The villagers claim that the land where the proposed plant was to come up is fertile and they grow crops on the land thrice a year.

The report cites some villagers as saying that according to RR policy, a person who lose all his firming land and homestead land would get a maximum of INR 0.5 million in case of no employment. They questioned “How long this INR 0.5 million would last. Is the amount would give food to their future generations?”

Steel carrying MV Maria S sinks near Kochi

It is reported that an Albanian cargo ship MV Maria S sank about 500 meters north of the channel on Kochi coast in India on Saturday night but all the 15 crew members, 5 Indians and 10 Albanians, were brought ashore safely without any injury by personnel of the Kochi Port Trust.

As per report, Panama registered MV Maria S, carrying 3,000 tonnes of steel billets and some other cargo, was on its way to Albania from China when it developed a leak in the hull. Due to the leak, the vessel had diverted from its voyage and had been anchored at the outer anchorage of Cochin Port for shelter since June 26th 2007.

The Captain of the vessel informed the port that the vessel was sinking and on receipt of the distress message, Kochi port sent Tug Bali and Tug Balwan for assistance. But while transiting the channel, pilot tug noticed that the bow of the ship had started going down and that the ship had lost speed indicating that it was about to sink, it immediately altered course and steered the ship outside the channel on the northern side to avoid blockage of the channel.

India’s Coast Guard and Indian Navy have been informed for further course of action, especially for anti pollution activities in view of the oil spillage in the channel. The Coast Guard has started spraying of oil spill dispersal on Sunday, as there is a slight spillage of oil in the channel. As per report, since the vessel was a small one, the spillage has been minimal, consisting of only 40 tonnes of gas oil and two tonnes of lube oil.

SCCL board approves 500MW Adilabad power plant in AP

It is reported that Andhra Pradesh based state owned Singareni Collieries Company Limited has decided to set up a 500MW pit head power plant in Adilabad district of Andhra Pradesh.

While the state government has already given its approval to the power project, SCCL now has to approach the union government for clearance as any proposal with more than INR 100 crore by Singareni has to be approved by the central government.

This is for the first time that the SCCL is going for its own power plant. Earlier, SSCL had entered into a MoU with the National Thermal Power Corporation to jointly develop coalmines and also power projects.

SCCL is 51:49 JV between Andhra Pradesh government and the government of India. It has coalmines in 4 districts in Andhra Pradesh and is targeting to produce 40.5 million tonnes of coal during 2007-08.

Power ministry concerned over limited capacity of BHEL

It is reported that India’s power ministry, which favors creating another state run equipment manufacturer, has retreated that the 11th five year plan target of adding 76,000MW generation capacity would not be met even if Bharat Heavy Electricals Limited doubles its output.

Mr Sushilkumar Shinde union power minister said that "The present capacity of BHEL is not enough to meet the country's needs and it would not be possible to meet the requirement even if BHEL doubles its capacity."

Mr Shinde, on NTPC's proposed foray in equipment manufacturing to ensure speedy execution of projects, said that “If we find somebody else we have no need to go for NTPC. We have to find an alternative to BHEL.”

Mr Shinde also said that power sector would need an investment of up to INR 10,00,000 crore to meet the 76,000MW capacity addition target in the 11th Plan, along with corresponding transmission and distribution network improvement. The government has set a target of bringing down the transmission and distribution losses to 15% in the next 5 years.

Power Ministry had earlier partially blamed BHEL for failure to achieve 10th plan target during 2002-07, when India could add only about 22,000MW of generation capacity as against a target of 41,000MW. On the other hand, ministry of heavy industries and BHEL has dismissed such statements saying the company could not be blamed. BHEL has also said that it has embarked on an INR 3,200 crore expansion plan to enhance its capacity from the present 7,000MW to 15,000MW by 2010.

Japan looking to increase Indian tie ups

It is reported that Japan is likely to announce an investment of USD 30 billion in India’s infrastructure projects including the high speed rail freight corridor between New Delhi and Mumbai, a port in Gujarat and industrial complexes in Rajasthan.

Mr Akira Amari minister of economy, trade and industry of Japan is leading a 60 member delegation to India in this connection. The delegation is visiting New Delhi and Mumbai and have meetings with industry bodies like the Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry. Mr Amari’s visit would be followed by Mr Shinzo Abe prime minister of Japan’s visit in August 2007.

Sources close to the development said that Japan wanted to invest in India’s infrastructure projects and make it a hub for production and exports to Europe and West Asia.

As per earlier reports, some of areas of cooperation could include
1. Indian Railway’s freight corridor
2. Nippon Steel’s JV with TATA Steel.
3. Nisshin Steel’s SS JV
4. Kobe Steel’s JV with Chowgule Group

GMR Energy bags Holi Bajoli hydel project in Himachal Pradesh

The GMR Energy Limited has bagged the 180MW Holi Bajoli Hydro Electric Project proposed to be set up at an investment of INR 1050 across Ravi River at Chamba district in Himachal Pradesh. The project is expected to go into commercial operations by 2014.

GMR will bring in INR 210 crore as equity while the remaining INR 840 crore will be sourced through debt financing.

GMR group will have a 40 year concession period from the date of commercial operations. Himachal Pradesh would be allotted free power from the project to the extent of 12% of the generation for the first 12 years as per the term. The other beneficiary states include Haryana, Punjab and Delhi.

As per report Reliance Energy, Larsen & Toubro, Lanco, Jaypee and Torrent-Gammon consortium were among other companies that had submitted financial bids against the request for qualification, floated by the HP State Electricity Board.

Vallabh Steels and Vardhman hive off steel assets to Zoom Vallabh Steel

Vallabh Steels Limited announced that it has decided to hive off its sponge iron unit set up in Jharkhand for which March 1st 2006 has been fixed as the appointed date.

Vardhman Industries Limited also announced that it has decided to hive off its power plant and steel making unit in Jharkhand for which March 1st 2006 has been fixed as the appointed date.

Both the companies said that they have compiled the annual accounts for the financial year ended March 31st 2007 where the profit and loss pertaining to the units being hived off have been transferred to a special purpose vehicle Zoom Vallabh Steel Limited.

TATA Sons to infuse fresh capital into TATA Power

PTI last week reported that TATA Sons, the main promoter of TATA Power Company Limited, will infuse fresh capital into the power company through a mix of debt and equity.

As per report, shareholders of TATA Power Company Limited have passed a resolution to offer 98,94,000 equity shares of INR 10 each and 1,03,89,000 warrants with option to subscribe one equity share of INR 10 each per warrant, to TATA Sons.

The resolution, passed through a postal ballot, allows TATA Power Company Limited to issue 98, 94.000 equity shares and 1, 03, 89.000 warrants to the promoters against cash on preferential allotment basis but promoters can exercise the option of getting equity shares for warrants after April 1st 2008 but it should not be later than 18 months from the date of issue of warrants or the equity shares.

Global DRI production in May 2007

International Iron and Steel Institute have released the production figures for direct reduced iron for the month of May 2007. The global production of DRI in May 2007 was 4.231 million tonne down by 1.8% YoY with India accounting for 33% of the global share.

Global DRI production during January to May 2007 amounted to 21.441 million up by 6.8% YoY. India’s production in this period amounted to 7.050 million tonnes up by 18.1% YoY, accounting for 32.8% of total global DRI production.

The production update is as under

In 000 tonnes
Source – IISI

MEPS sees hot band prices downturn despite Chinese export tax

MEPS reported that US strip mill transaction prices softened further over the last month as scrap costs continued to slide and that the downturn is most apparent in the hot rolled category. MEPS said “Real consumption has remained lackluster, causing service centre inventory depletion to take much longer to complete than was initially envisaged. Delivery lead times quoted by domestic mills have reduced to four weeks or less in some instances. There is a dearth of import offers. Domestic mills have turned to export markets, encouraged by the weak US dollar and good demand elsewhere.”

MEPS said the continuing strength of the Canadian dollar is impacting values in that country, with US mills actively selling at cheap prices. It said “Third country imports are low by recent standards and not now the price setters. Service centre inventories are still higher than warranted by the mediocre demand levels, leading to a very price competitive market. Although mill values have weakened compared to last month, it remains to be seen if this indicates just an early arrival of softness ahead of auto and other industrial summer shutdowns or something more significant.”

MEPS also added that “Prices in China have started to fall as the Government's export tax changes led to increased supply in the market. Traders are considering the implications of the new rules before offering. In Japan, the export climate is healthy and domestic sales to end-users such as automotive and shipbuilding are strong. However, total domestic inventories of strip mill products held by steelmakers and service centers, at end April, climbed by 1% the second consecutive monthly rise. Quayside stocks escalated by 18,000 tonnes in the same time frame. Japanese traders insist the rise was a one off caused by a surge in Chinese exports ahead of the removal of the tax rebate. In South Korea, POSCO has said it will absorb higher iron ore costs in order to ensure that domestic steel prices stay competitive against imports. CSC has released its third quarter steel prices for the Taiwanese market with an average increase of 2.4%. This is not as much as some downstream companies feared. Chung Hung lifted official values last month but, despite escalating slab costs, the company has left prices unchanged for June.”

MEPS said “The West European strip market is relatively quiet ahead of the conclusion of price negotiations for third quarter business. Service centers, which are well stocked until September, are in no rush to settle. Traders are waiting for new offers from Chinese mills, following the recent changes in export taxes. EU steelmakers appear to be controlling production in-line with demand quite well.”

Outlook for Chinese steel industry appears healthy

According to data released by National Statistics Bureau, China's steel sector has realized a YoY profit increase of 120% in January to May 2007 period. As per China Iron & Steel Association, 97 medium and big steel related enterprises have seen their combined turnover up by 34.56% YoY during January to May 2007 and their profit jumps 153.54% YoY.

Mr Qi Xiangdong vice secretary general of CISA said that robust steel demand across the world coupled with steep production cost have put a floor under the steel prices. He said that the rapid profit growth is due in part to poor performance of steel industry of corresponding period in previous year. Besides, wide price spread between domestic sales and international market also helps prop up domestic steel prices.

Mr Qi said meanwhile, domestic steel output growth has already started to moderate as the fixed assets investment in iron and steel has expanded by only 4.9%YoY to CNY 79.89 billion during January to May 2007, which reflects that the tightening efforts have paid off. He added that domestic leading mills have upgraded their facility and improved internal management over the years, which have enabled them to reduce energy consumption and step up ratio of high value-added products. They managed to maintain good profitability thanks to self-improvement and economies of scale.

Mr Zhou Xizeng analyst with CITIC Securities revealed that the gross profit margin remain fairly strong through May 2007 as compared with the year before despite slight decline on steel prices. He expects steel prices to bounce back following temporary revision due to the export tax impact. Domestic steel inventory has fallen down as a result of pessimistic market sentiment, which would help push up the prices once the market equation back to normal. He said that steel prices would stage strong gains in late September following seasonal demand slowdown in July and August. The listed steel mills would keep their full year profit growth at over 30%.

(Sourced from MySteel.net)

China’s May 2007 coke export up by 8.9% YoY

China has witnessed further increased in coke exports as it has exported 1.6137 million tonnes of coke during May 2007 up by 8.9% YoY. China’s coke exports during January to May 2007 period has amounted to 6.7437 million tonnes up 26.97% YoY as compared to same period last year.

China’s May 2007 export is as under

(In tonnes)

China’s May 2007 export destination is as under

(In tonnes)

(Sourced from MySteel.net)

MV Pasha spilling oil threatening environmental disaster

It is reported that the rescue effort to free coal carrier MV Pasha Bulker beached for last 3 weeks at Nobby’s near Australia’s Newcastle Port was tainted by a possible environmental disaster, with oil spilling from both sides of the 40,000 tonne ship.

As per report, the oil spill was discovered moments after the king tide peaked at 8.45PM and just as the bow of the ship had been pulled by three tugs from facing the beach to pointing out to sea.

Mr Joe Tripodi ports minister of NSW confirmed that the ship was leaking black fuel oil but added that the severity of the spill would not be known until this morning. Mr Tripodi however added that the salvage master had decided to continue with the re float attempt despite the spill and was making good progress.

The bulk carrier has 700 tonnes of fuel onboard.

Global steel trade statistics for 2006

UK based Iron & Steel statistic bureau recently reported the statistics of global steel trade in 2006.

China jumped over Japan, Russia and the EU25 to become the World's biggest steel exporting country. Indian exports grew by 23%YoY in 2006.

In million tonnes
(Source Iron & Steel statistic bureau)

The US and the EU15 remain the key steel importing regions to imports of around 40 million tonnes in 2006. The EU imported a record 39 million tonnes in 2006 about 12 million tonnes more than in 2005 out of which 4 million tonnes came from China. USA also imported an extra 12 million tonnes in 2006 up by 42% YoY on 2005 with significant increases in imports form China and Russia. China slipped from 2nd largest importer in 2005 to 4th largest in 2006 as China became more self sufficient in steel supply. Imports into the Middle East continue to remain strong and, particularly, steel for construction into the United Arab Emirates.

In million tonnes
(Source Iron & Steel statistic bureau)

Hydro and Siemens join hands for floating wind turbines

Norwegian energy company Hydro and Siemens Power Generation have entered into an agreement to cooperate on technology to develop floating wind turbines based on Hydro’s Hywind concept. Siemens will deliver the first wind turbine for the demonstration unit, which will be positioned off the coast of Norway.

Mr Alexandra Bech Gjørv Head of New Energy at Hydro said that “We are pleased to get Siemens on the team. Siemens Power Generation is already a leading supplier of offshore wind turbines on fixed foundations. This new technology partnership will give us a leap forward in installing the world’s first floating wind turbine at sea.”

Mr Andreas Nauen head of the Siemens PG Wind Power division said that "Making floating offshore foundations commercially viable is a significant technological challenge. Entering this strategic agreement with Hydro puts us in the best possible position to further expand our proven technology and leading position in the growth market sector of offshore wind farms.”

Hydro currently has a license to place a demonstration turbine offshore near Karmoy an island in the southwest of Norway. The company is also considering the possibility of locating the wind turbine near an oil installation with the aim of supplying it with renewable energy.

China to further tighten acquisition rules for overseas firms

China's top legislature, the Standing Committee of the National People's Congress recently went through the second reading of the China's first anti monopoly law, which, if passed, would impose security checks on any foreign enterprises buying Chinese companies. The draft said that "Foreign mergers and acquisitions of domestic companies or foreign capital investing in domestic companies operation in other forms should be examined according to relevant laws and regulations if the cases are related to national security."

According to China’s official statistics, the number of foreign merger and acquisition cases only accounted for 5% of all forms of foreign direct investment in China annually before 2004. However, the proportion rapidly increased to 11% in 2004 and nearly 20% in 2005.

Foreign companies have begun to acquire major state owned enterprises or companies with famous brands in recent years, arousing concerns about China's economic security. China has already established a basic national security check system for foreign mergers and acquisitions.

According to a regulation issued by the China’s ministry of commerce along with 5 other government organs in 2006 foreign investors should apply for approvals from the ministry of commerce if their purchases of domestic companies affect national economic security, take place in key sectors or cause a transfer of the operating rights of famous domestic brands. Before that, only mergers and acquisitions worth more than 100 million US dollars needed ministry of commerce checks and approvals.

According to the China’s National Development and Reform Commission China will strengthen examination and supervision of foreign merger operations affecting major enterprises in sensitive sectors and issue policies to improve the system for admitting foreign invested industries by the end of 2010.

Mr Zhang Yansheng director of the International Economic Research Institute under the NDRC said that it is crucial to require foreign purchases of domestic firms to go through state security checks as well as anti monopoly checks. But the situation needs to be spelt out in more detail. For example, what kinds of mergers are related to national security?"

Metalico to buy more scrap assets soon

Platts reported that New Jersey based scrap processor and lead fabricator Metalico has kicked off its already fast paced expansion program into high gear by preparing to acquire two more scrap companies over the next several weeks.

Mr Michael J Drury executive VP of Metalico said that the identities and other details of the companies being acquired are not being disclosed pending finalization of agreements but they will complement existing operations. He said both companies being purchased process ferrous and nonferrous metals are expected to be finalized late this month or early in the third quarter.

As per report Metalico has arranged to raise USD 36.7 million through a private placement of its common shares to fund the transactions. Canaccord Adams has been picked to handle the offering.

Metalico has moved aggressively to increase the scrap processing side of its business, with the primary focus being on ferrous and alloy steel operations. It has acquired several ferrous scrap locations in upstate New York since 2006 and in April announced that it was in the process of permitting a mega shredder at its Metalico Rochester subsidiary at Chili in New York. Earlier last month Metalico announced the acquisition of Pennsylvania based Tranzact Corp a recycler of molybdenum, tantalum and tungsten scrap.

Dillinger Hütte orders for high power dividing shear

It is reported that German plate maker AG der Dillinger Hütte has awarded a contract to SMS Demag for the modernization and upgrading of the shear line of the heavy plate mill at Dillingen in Germany. After a 3 week shutdown period for revamping, the new systems will be put into operation in October 2008.

The scope of the supply includes a new dividing shear and the modernization and upgrading of the existing crop shear. The aim of the revamp is to adapt the shear line to meet more exacting requirements.

The new dividing shear cuts plates up to a thickness of 50 mm at a maximum tensile strength of 1,200 N/mm². The dividing shear is of a closed housing design and it is possible to cut also higher strength plates accurately, ensuring straight edges. In the crop shear, SMS Demag will be replacing main components, such as the crankshafts, the bottom knife table, the top knife slide and the knife cartridges, thus optimizing the kinematics of the shear. The knife cartridges of the crop shear and of the dividing shear are of identical design and thus interchangeable.

In addition to the dividing shear itself, SMS Demag is also supplying a new knife changing system, scrap conveying facilities, the traversable stop, a shear depressing table and all pertaining utility systems.

Sunrise Metal opens its new pre painted line in UAE

Sunrise Metal Coating LLC last week announced the opening of its new AED 500 million pre painted coil coating facility at Dubai Investment Park in UAE.

Mr Abdul Samad Rezaei chairman of Sunrise Metal Coating said that “There is a large demand for pre painted coils in the region. The UAE market requirement alone is estimated to be 12,000 tonnes per month, which amounts to a monthly turnover of approximately USD 30 million. With a production capacity of 144,000 tonnes per annum, we are confident of gaining over 25% of the market share within our first year of operation’s.”

Mr Rezaei added that “We have got the latest machinery and equipment from Italy which gives us a cutting edge in the pre-painted coil industry. The production line itself is 150 meters in length and fully computerized, hence we are able to produce 18 tonnes of material in just 1 hour.”

Mr Rezaei said that “Plans are already underway for further expansion. We are currently working on setting up another production line with a higher capacity and a rolling mill. However, it is too early to reveal anything more than that at this juncture."

Sun Rise Metal Coating specializes in the latest coil coating techniques and prides itself in producing pre painted coils of Aluminiun, Galvanized and AluZinc with Polyester, PVDY and PU Top coats in Glossy, matt and metallic finishes for construction, external and internal cladding, roofing profiles, metal ceiling, insulated panel for cold storage applications.

New Zealand coal miners extend strike

It is reported that the workers at two coal mines in New Zealand are on strike until at least Monday night after some staff were refused transport to the Spring Creek mine near Greymouth. 45 staff at Spring Creek mine went on strike for two hours on Friday morning but were then refused their usual transport over the 2 kilometer from the changing station to the mine.

The Engineering, Printing and Manufacturing union's West Coast organizer Mr Matthew Winter said that managers told them the bus left only at scheduled times.

Solid Energy said that transport is only provided at the start and end of each shift.

Walking on the road is dangerous and prohibited.

Eight hundred miners throughout New Zealand have been on a nationwide strike since the beginning of the week including an overtime ban and rolling stoppages.

Indonesia plans tin futures contracts within 5 years

Bloomberg reported that Jakarta tin exchange would start up within five years and that initial studies would be prepared by Indonesia’s Futures Exchange Supervisory Board.

Indonesia’s tin production is expected to fall by 25% this year to 90,000 tonne after tin exports were halted in February owing to an investigation into illegal mining on the island of Bangka.

Boulder receives final business plan for seamless tube project

Australian Boulder Steel Ltd last month announced that they have received the final version of the business plan for the Boulder’s Seamless Tube Project in Australia including the finishing plant in the UAE from British Engineering firm McLellan.

The release said that “The National Investor, Boulder’s financial advisors based in Abu Dhabi, who had commissioned McLellan with the preparation of the study, are satisfied with the business plan and they are now presenting the document to ten selected equity and strategic investors who have previously expressed their interest in contributing to the project funding. These investors are now evaluating the results of the business plan.”

The release added that “The business plan has also been delivered to a European bank which previously provided Boulder with a letter of interest to raise the debt finance required. This bank recently re-confirmed its interest and specified a number of documents required from Boulder to make a final commitment. The delivery of the business plan to the bank now completes the list of documents it had requested.”

Caofeidian invites enterprisers for investment

The administrative committee of Caofeidian Industrial Zone in China is inviting enterprises to invest in Caofeidian.

Caofeidian which is located offshore to the south of Tangshan in China’s Hebei Province was a belt like alluvial sandy isle formed more than 5,000 years ago but now the constructors of Caofeidian are staging the biggest project of reclaiming land from the sea in the history of China, which is the initial stage of a huge scale development.

The infrastructure construction in Caofeidian started as early as in 2003 and at present, the facilities for water and power supply, transportation and telecommunications in Caofeidian are improving day by day. The construction of Caofeidian is entering into a new stage of developing mainstay industries to bring along the overall development.

The 250,000 tonnes ore terminal was open to both domestic and international navigation. The construction of the crude oil and coal terminals is now underway and will be finished by the end of 2007 and in June 2008 respectively.

The construction of the Shougang Jingtang Iron and Steel Corp was started officially on March 12th 2007, which will start producing 4.85 million tonnes of steel products in 2008.

smbChromstahl celebrates 25 years of operation

ThyssenKrupp smbChromstahl’s production operation in Langenhagen near Hanover in Germany is celebrating 25 years of operation and is holding an open day to celebrate the anniversary with employees, their families and partner firms.

Formed in 1982, ThyssenKrupp’s smbChromstahl GmbH is a stainless steel service center active throughout the whole of Europe holding a large inventory of finished and pattern rolled stainless steel sheets. It provides a top quality service to a wide range of customers, including manufacturers of catering equipment, appliances, elevators, escalators, food and medical equipment, facades, tanks and process equipment. In 1999 ThyssenKrupp Nirosta GmbH integrated smbChromstahl into its group of businesses and since then smbChromstahl has sourced all its stainless steel coils from ThyssenKrupp Nirosta. The company’s services extend from standard distribution to customize finishing, with non directional mirror finishes a particular specialty.

The key facility at smbChromstahl is a coil grinding and brushing line with integrated cut to length shear. Three grinding and three brushing machines allow the production of both standard and custom finishes. Another two sheet grinding and brushing units are available to meet special requirements. With the installation of a high gloss polishing line in mid 2001 the company took on a new challenge, the production of smbPolistar mirror finish stainless steel sheet. smbChromstahl also stocks a wide range of design-patterned sheet and can supply custom made blanks quickly and reliably, even in small runs.

Dr Alfred Otto executive sales director at ThyssenKrupp Nirosta said that “We are setting new standards in service based customer retention. Our aims are to achieve additional sales through even more services and to establish an even stronger service focus in the minds of all.”

ThyssenKrupp Nirosta is one of the world’s leading manufacturers of stainless flat products offering a wide range of grades, sizes and finishes. The company has three service centers in Germany namely NSC in Wilnsdorf, EBOR Edelstahl GmbH in Sachsenheim and smbChromstahl GmbH and operates a sales company in the USA ThyssenKrupp Nirosta North America in Illinois. In fiscal year 2005-06 ThyssenKrupp Nirosta generated sales of around EUR 2.7 billion.

Xuanhua Steel to build 2 pellet lines

Sohu.com reported that North China's Hebei Province based Xuanhua Steel has planned to add 2 pellet production lines with output designed at 2.4 million tonnes annually. It forecasts to start construction work in later half year and operation is slated for early 2009. The project may cost CNY 270 million (USD 35 million).

Xuanhua Steel is part of rebar, wire rod and HR strip producer Tanggang group. Xuanhua Steel’s crude steel output reported at 4.3 million tonnes in 2006 and aims to expand steel output to 8 million tonnes per year by 2010.

(Sourced from MySteel.net)

BHPB to continue share buy back program

BHP Billiton has announced that it would continue the currently on market buyback of BHP Billiton Plc shares during the close period from July 1st 2007 to August 22nd 2007.

BHP Billiton has entered into an irrevocable arrangement with an independent third party which makes its trading decisions in relation to the securities of the company and BHP Billiton Plc independently of, and uninfluenced by, the company or BHP Billiton Plc, to purchase on the company's behalf and within certain pre-set parameters, ordinary shares in BHP Billiton Plc during the period commencing on July 1st 2007 and ending upon the announcement of the company's final results for the full year ended June 30th 2007.

These share purchases will be made on the BHP Billiton’s behalf and in accordance with the irrevocable arrangement during a so called "Close Period", a period in which the company and its directors, officers and employees would normally otherwise refrain from transacting in BHP Billiton shares.

As per announcement, any share purchases effected pursuant to the irrevocable arrangement will be effected in a manner consistent with both the general authority vested in BHP Billiton Plc to repurchase shares and chapter 12 of the listing rules, which require that the maximum price paid be limited to no more than 105% of the average middle market closing price of BHP Billiton Plc's ordinary shares for the five dealing days preceding the date of purchase.

Gjoa development approved by Norwegian parliament

The Norwegian parliament announced that it has approved the Statoil operated North Sea Gjøa field's plan for development and operation. Research work is now in its final phase before final consideration by the Norwegian Water Resources and Energy Directorate. Plans call for the Statoil operated CHP station to come on stream in 2010.

The Gjøa field will be developed with a floating production platform and gas will be sent via the UK Flags pipeline to St Fergus in Scotland. Oil will be piped to the Troll II line and further to the Statoil-operated Mongstad refinery north of Bergen.

Mr Tim Dodson acting executive vice president for Exploration & Production Norway said that "This is a day to be remembered. We are very pleased that the development is finally approved. A review by the owners of the required approval terms and conditions remains however, particularly in light of the fact that the project is economically marginal. Realization of Gjøa's reserves will give Statoil significantly increased production and returns."

Gjøa lies in blocks 35/9 and 36/7 and was proven in 1989. Reserves are estimated at 82 million barrels of oil and 40 billion cubic meters of gas. Total Gjøa investments are estimated at NOK 27 billion in 2006 money. Gaz de France will be operator during the production phase.

SA Transnet spent ZAR 11.7 billion for capacity increase

It is reported that South African freight company Transnet spent a record ZAR 11.7 billion in the year to March ramping up capacity and that it would continue to fund expansion of rail, ports and pipelines over the next five years.

Ms Maria Ramos CEO of Transnet while speaking at the presentation of annual results said "We have effectively doubled capital expenditure in this financial year and the company reported an 8.4% increase in revenue to ZAR 28.2 billion. Profit from continuing operations increased by 31% to ZAR 6.3 billion.”

Ms Ramos said that although funds had been committed to increasing the coal line's capacity to 86 million tonnes a year from 72 million tonnes, there was insufficient product to rail in the last year. She said "We do have concerns about industry's ability to meet some of its volume forecasts, particularly the export sector. However we're not interested in investing in under utilized assets."

Over the next five years Transnet plans to spend ZAR 78 billion of which almost half will be on Spoornet, the freight rail business. This includes buying 404 locomotives for ZAR 4.9 billion. Of the ZAR 34.8 billion to be spent on rail, ZAR 15.3 billion would be for upgrading and equipping the general freight business, including containers cars, manganese and steel. However once additional projects were approved, capital expenditure would rise further. Among the projects that Transnet is assessing is the feasibility of an additional container terminal at the southern side of the Durban port and a new freight rail ring around Gauteng.

DuPont to improve emergency management system in BaoSteel

It is reported that DuPont Safety Resources China recently signed a contract with Baosteel to enhance the company's emergency management system. This is DuPont Safety Resources 's first contract in one of the major Chinese industries.

As per report the contract entails a three phase comprehensive service to BaoSteel. It focuses primarily on enhancing the organization's emergency preparedness capability through work skill development, professional safety consultation and implementation assistance.

Mr Steve Burtch president of DuPont Safety Resources Asia Pacific said that "This marks a significant milestone for cooperation between DuPont and BaoSteel through the sharing of safety knowledge and best practices exchange"

SMS Meer to supply equipment for Metalloinvest new steel rolling mill in UAE

It is reported that German SMS Meer SpA will supply equipment for a new steel rolling mill in the United Arab Emirates, to be built by Russian Metalloinvest Management Company. The final details of the contract were discussed by the management of the two companies at a metallurgical exhibition held at Dusseldorf in June 2007.

As per report Metalloinvest has also reached an understanding with Siemens-VAI on cooperation while building the third HBI plant at Lebedinsky GOK. The two parts are to discuss technical and economical provisions of the contract in July 2007.