NMDC to develop deposits in Chattisgarh and Karnataka

It is reported that National Mineral Development Corporation will develop two new mines in Chhattisgarh and Karnataka at an investment of INR 700 crore.

Mr B Ramesh Kumar CMD of NMDC told reporters that construction to develop 11-B deposit at Biladila mines in Chhattisgarh was taken up in January this year and the new mine would begin production by 2009. The 11-B mine has a reserve of 100 million tonnes and would be developed at a cost INR 350 crore.

Mr Kumar added that another mine of the same size would be developed at Kumarswamy in Karnakata with an investment of INR 350 crore.

As per report, NMDC has also identified iron ore deposit No 13 in Chhattisgarh having about 340 million tonnes high grade iron ore and would now apply for forest and environmental clearance to develop the mine.

Bucyrus to step up operations in India

IANS reported that world leader in the design and manufacture of mining equipment Bucyrus International Inc is setting up its India operations headquarters at Kolkata in West Bengal.

Mr Timothy W Sullivan president & CEO of Bucyrus International during an interview with IANS said "We have chosen Kolkata as our Indian headquarters of Bucyrus India Ltd, a 100% Indian subsidiary of the global company, for its geographical advantage since we can oversee countrywide operations from here and also support our facility at Singrauli in Madhya Pradesh. A manufacturing unit in the state is also under active consideration.”

He said that "We plan to scale up the India operations in the next five years and make it a 500 employee company here, the second biggest overseas operation after Chile where we have 600 people. However, by the end of 2007 we will have four offices in India. The three other being at Singareni in Andhra Pradesh, Singrauli in Madhya Pradesh and in Chhattisgarh. We hope to make business worth USD 1 billion in the next 10 years. This is a conservative estimate.”

Mr Sullivan also announced willingness to set up a USD 5 million manufacturing unit in West Bengal over a 120,000 square foot area. He said "The Bengal unit if set up would supplement our facility in Bangalore where we work in collaboration with Bharat Earth Movers Limited.”

He said there is a trend globally for mining companies to partner with the supplier of the machinery for better utilization of the equipment and maintain safety requirements. He said "We are trying to tell the Indian clients that the multi million dollar machines are operated fully and for that a partnership with the machine manufacturer is important.”

Bucyrus International Inc is a world leader in the manufacture of draglines, drills and shovels for the surface mining industry. In addition to mining machinery, Bucyrus also manufactures high quality OEM parts and provides world class support services for all Bucyrus machine brands including Bucyrus, Bucyrus-Erie, Marion and Ransomes Rapier.

NCDEX to launch power exchange in 6 months

BS reported that the National Commodity & Derivatives Exchange has collaborated with the National Thermal Power Corporation and National Hydroelectric Power Corporation to set up spot power exchange in New Delhi. NCDEX hopes that all regulatory hurdles will be cleared and the power exchange will start functioning in the next six months.

Premium and discounts of the contract would be negotiated depending upon the peak and non peak hours of distribution but distribution cost would be borne by the buyer.

As per report, some private players including consumers have also shown interest in such platform. Mr PH Ravikumar MD of NCDEX said that “It is premature to say anything now as we are preparing the list of interested companies to show to the Central Electricity Regulatory Commission. We are in the process of filing an application soon.”

So far, electricity is traded only on London based Intercontinental Exchange. But Multi Commodity Exchange of India has also obtained the in principle clearance from the CERC to set up Indian Energy Exchange with PTC having 26% equity stake.

The proposed power exchanges are likely to emerge as market based institutions providing price discovery and price risk management to all stakeholders including generators, distribution licencees, traders, and consumers. The traders of this exchange would be delivery agents for exchanges.

NMPT to construct 4 more berths soon

It is reported that the New Mangalore Port Trust will soon construct four multi purpose berths in anticipation of bulk traffic requiring vessel size of 100,000 capacities.

Mr P Tamilvanan chairman of NMPT before participating in a trade meet organized to interact with exporters and importers of various commodities and container main line operators told reporters that “Under the National Maritime Development Program, NMPT will spend INR 6,400 crore up to 2013 on expanding cargo handling facilities, with four additional deep berths for ships to be built. The private participation share is being worked out by consultants and work can start by mid-2008”.

Mr Tamilvanan added that “NMPT is awaiting report from a consultative agency with regard to new berths and the issue would be finalized by the center by March 2008.”

He said “NMPT had handled 32 million tons and 1045 vessels during 2006-07 and the container traffic had registered a growth of 79.25% YoY. The frequency of container vessels calling at the port increased to a vessel per week and the growth during the first quarter had already crossed 24% YoY.”

SCI to buy 12 vessels

India’s Cabinet Committee on Economic Affairs has accorded approval to Shipping Corporation of India to acquire 12 vessels at an investment of approximately INR 3,193 crore.

SCI plans to buy following vessels
1. Aframax tankers of 110,000 DWT x 4
2. Large Range II size product tankers of 95,000 DWT x 2
3. Panamax bulk carriers of 75,000 DWT x 4
4. Cellular container vessels of 5000 TEU x 2

SCI will be allowed to avail of external financing up to the extent of 80% of contract price of each vessel. The loan would be sourced either from the domestic or the international market. In case SCI resorts to ECB funding, it would seek necessary approval for the Government. SCI will be allowed to pay the balance 20% of the contract price from its Internal Resources.

The acquisition will lead to augmentation of SCI’s tonnage to meet the increased demand for crude oil transportation in the coming years and to enable the SCI to cater to most of India’s crude transportation requirements so as to reduce dependence on the foreign flag vessels and as per the current policy of the government of India.

India to fund 1095 MW Punatsngchhu hydro project in Bhutan

Indian government has accorded its approval to signing of an agreement with Bhutan to implement the 1095 MW Punatsangchhu-I hydropower project in Bhutan and 400 KV double circuit transmission lines from project site to India Bhutan border and related works. The project would be developed under the Clean Development Mechanism to generate carbon credits. The Project is expected to be commissioned in 7 years from the date of commencement.

Funding for the project to be at INR 3514.82 crore on agreed terms and conditions by the two Governments, comprising INR 1405.92 crore equivalent to 40% of the estimated cost to completion as grant and; Rs.2108.89 crore equivalent to 60% of the estimated cost to completion as loan. The loan shall carry an interest rate of 10% per annum and shall be repayable in 12 equated annual installments, the first repayment commencing from one year after the mean date of commercial operation.

Additional budgetary support, over and above the estimated project cost of INR 3514.81 crore, to cover the additional outflow on account of service tax on actual basis

The project will provide surplus power to India and thus augment power availability in the country. In addition, the project will contribute to our strategic objective of further integrating the economy of Bhutan with that of India.

NHAI restructuring proposal approved

Indian government has approved the proposal for restructuring of National Highway Authority if India to give it enhanced powers for handling the public private partnership projects effectively.

The approval is accorded to the following proposals

1. Selection of the chairman by a search committee headed by the cabinet secretary and comprising of secretary DORT&H, secretary planning commission, a CMD or MD of a financial institution and one of the directors of IIMs to be nominated by the cabinet secretary. The tenure of the Chairman to be fixed for at least three year which can be extended up to five years. Age, in case of the chairman, to be relaxed up to 62 years, if required for three year tenure.

2. NHAI to have six full time members as against five at present one each for finance, administration, public private partnership, two members project and one member technical.

3. Increase in the number of part time Members by two from earlier 4 to 6, who would be from the non Government sector, one from IITs or IIMs and the other from financial institutions.

4. Amendment in NHAI Act of 1988

5. Creation of the following 26 posts of CGMs over and above the existing 13 posts of CGMs :
i) 15 posts of CGMs for project implementation and corridor management.
ii) 11 posts of CGMs fo i.e CGM(Finance) (2 posts), CGM(PQ), CGM(SR&D), CGM (Administration and HR), CGM (IT), CGM (LA), CGM (Legal), CGM (Safety), Financial Analyst (CGM level), Contract Management Specialist (CGM level).

6. Empowering NHAI to engage where required, outside experts with relaxation of age if needed specifically the posts of financial analyst, transport economist, contract management specialist and legal expert.

NHAI is responsible for meeting India’s need for the provision and maintenance of National Highways network to global standards and to meet user’s expectations in the most time bound and cost effective e manner, with the strategic policy framework set by the Government of India and thus promote economic well being and quality of life of the people.

Haryana to spend INR 24,000 crore on power sector by 2012

It is reported that the Haryana government will spend INR 24,000 crore on generation, transmission and distribution of power in the state during the 11th Plan period. Of the total amount, 50% of this amount will be spent on generation of power and the rest on transmission and distribution system.

Haryana will generate 4,500 MW power during this period by starting generation at the 600 MW Yamunanagar thermal plant, the 1,200 MW power plant at Khedar in Hisar, the 1,500 MW power plant at Jhajjar, and another power plant of 1,200 MW in the private sector at Jhajjar.

The first unit of the Yamunanagar thermal plant will be commissioned by November 2007 and the second unit by February 2008.The Hisar power plant of 1,200 MW will be completed in a record period of 35 months and it will start generation in December 2009.

SAIL VISL supports high school at Hirivur

It is reported that Steel Authority of India Limited’s Bhadravati based Viswasuriya Iron & Steel Limited is continuing to support government higher primary school at Hiriyur under SAIL’s CSR program and has recently supplied of 40 sets of steel desks and benches.

Mr MK Bhattacharya ED of VISL while addressing the students said that SAIL was founded with well articulated socio economic objectives towards the infrastructure development of the country and is not only concentrating on producing quality steels but also carried a social concern.

As per report, VISL helped the school to the tune of INR 2.5 million last year.

L&T secures 4 hydrocarbon contracts in Gulf

Larsen & Toubro Ltd announced that it has recently secured 4 different contracts worth USD 177.75 million for different projects in the hydrocarbon sector in the Gulf region.

1. L&T’s modular fabrication facility has secured an order worth USD 44.95 million from Technip through international bidding for manufacture and supply of 10 No pre assembled process modules for handling & processing of gas. These modules will be installed for Abu Dhabi Gas Liquefaction Company Ltd in Abu Dhabi. The delivery of the modules is to be completed in 18 months.

2. L&T has also secured an USD 51.6 million order for a Naptha Hydrotreater and Reformer unit from ENOC processing company at Dubai. This project is scheduled to be completed in 16 months time.

3. In Qatar, L&T has secured a contract for the Pearl GTL Project Package C5 Liquid processing unit valued at USD 36.4 million from Qatar Petroleum & Shell JV Company. Time frame for completion of this project is 29 months.

4. L&T has also got an USD 44.8 million contract from Oil Tanking Company in Oman.

All the above contracts have been bagged against stiff international competition and competitive price bidding.

Jessop revalues assets at INR 800 crore

Jessop & Co Ltd said that it has been revalued at INR 800 crore up from INR 35 crore valued prior to its disinvestments. Mr PK Ruia chairman of Jessop & Co said that "We have just concluded the revaluation process. The valuers had pegged the asset at INR 800 crore. The valuation had jumped due to land price moving up."

Jessop, which has 115 acres of land at Durgapur and 73 acres in the metropolis, has completed the process for issue of fresh shares and divesting stake. Mr Ruia added that "Promoters' holding is 92.4% and we aim to bring it down to 75% through combination of fresh shares and dilution of promoters’ stake. We might wait for the right valuation though there are 3 to 4 serious investors seeking to invest in Jessop." He, however, did not give any timeframe for the dilution.

Mr SC Saxena MD of Jessop said that the company is close to announcing alliance with a Chinese company for joint bidding for metro coaches and European company for other engineering products.

Jessop expects INR 1,000 crore turnover by next 5 years. In 2006-07, it has registered a turnover of INR 83 crore and a net profit of INR 11.08 crore.

Kandla port to expand bonded warehouse area

BL reported that the Kandla Port Trust has proposed to expand the customs bonded area by about 40 hectares to bring the total to 222 hectares within the next 16 months to 18 months and has accordingly started the land development work with an investment of INR 43 crore. The proposed additional area will be used for storing about half a million tonnes of cargo, mostly bulk.

Currently, Kandla port has 182 hectares of customs bonded area, 1.394 million square metres of open storage with a storage capacity of more than 3 million tonnes and 0.126 million square metres of covered storage areas with a capacity of 0.317 million tonnes. 3 godowns are also under construction and there is a proposal for constructing 6 more at a cost of INR 26 crore.

As estimated, Kandla Port Trust’s traffic throughput in Q1 0f 2007 will be about 15.5 million tonnes during Q1 of 2007 up by 42% YoY as against 11.36 million tonnes over the same period of 2006. While, the container throughput during the period will be up by 25% YoY at 50,000 TEUs as against 40,000 TEUs in the same period of 2006.

Nucor H1 earnings dip by 13% YoY

US based Nucor Corporation announced consolidated net earnings for the first half of 2007 of USD 725.9 million a decrease of 13%YoY as compared to net earnings of USD 830.0 million in H1 of 2006. In the first H1 of 2007, Nucor's consolidated net sales increased by 8% to USD 7.94 billion as compared with USD 7.35 billion in H1 of 2006. Its average sales price per tonnes increased by 9%YoY while total tonnes shipped to outside customers decreased by 1%YoY from H1 of 2006.

Nucor reported consolidated net earnings of USD 344.9 million for the Q2 of 2007 down by 23% YoY from the USD 450 million recorded in Q2 of 2006, and a decrease of 9% YoY from the USD 381 million earned in the Q1 of 2007. In the Q2 of 2007, the company's consolidated net sales increased by 10% YoY to USD 4.17 billion as compared with USD 3.81 billion in the Q2 of 2006. Its average sales price per tonnes increased by 13% YoY from the Q2 of 2006.

Nucor in a statement said that the earnings were hurt by several factors, continued softness in the sheet market caused by high imports of steel and steel bearing manufactured products, particularly from China and the reduced demand resulting from the slowdown in the automotive, appliance and housing sectors, have contributed to a decrease in the rate of inventory reductions by sheet customers.

China opposes US anti dumping probes on tubes

It is reported that China has strongly opposed anti dumping and anti subsidy investigations by the US into imported Chinese steel tubes saying that such measures threatened bilateral trade ties.

Mr Wang Xinpei spokesman with China’s ministry of commerce said "The US government continues the mistake of imposing anti dumping and anti subsidy measures from time to time. These investigations have aroused strong dissatisfaction in Chinese business circles.”

He said that as the US did not treat China as a market economy, the use of anti dumping and anti subsidy measures also infringed US rules and its tradition of not adopting anti subsidy measures against non market economies, which had been practiced for more than two decades.

Mr Wang said the move threatened Sino-US economic and trade ties and China would assert its rights as a WTO member if the United States continued the measures.

The US Department of Commerce announced this week that it would officially launch investigations into imports of light walled rectangular pipes and tubes. In June, the US Department of Commerce started anti dumping and anti subsidy investigations into Chinese carbon steel tubes.

Interpipe not in merger talks with TMK and planning IPO

Interfax reported that Ukraine's Interpipe announced that it is not holding negotiations on a merger with Russia's Pipe Metallurgical Company TMK. Mr Viktor Pinchuk of Interpipe in an interview with Ukrainskaya Pravda said that "We are not holding negotiations with TMK, we simply held consultations, with them as well as with others.’

Mr Pinchuk said that Interpipe is getting ready for an initial public offering, but this does not prevent it from holding consultations on potential strategic alliances with leading market players, including TMK. He said "That is, when you are moving toward an IPO, you cannot rule that on the way you will reach an agreement with a strategic partner.”

Mr Pinchuk also said that “He never insisted on merging his business with TMK on a parity basis because I realize that in the area of pipes they are bigger than me."

Mr Pinchuk added that “Even if I become a minority shareholder, I am completely happy with this if the capitalization of my assets grows. In other words, pragmatism, not ambitions is important here. This is consistent with my strategy of moving from an industrial group to an investment fund, a portfolio company.”

TMK announced in May 2007 that it was holding consultations with Interpipe on potential cooperation. Most commentators in the media thought that the companies are talking about a merger to form a company, which would produce 4.2 million tonnes of pipes per year overtaking the current global leader Tenaris.

Mr Stokes ACE takes stake in Iron Ore Holding

It is reported that in a surprise move Seven Network’s billionaire chairman Mr Kerry Stokes’ investment company, Australian Capital Equity, revealed it had agreed to buy a 40% stake in Iron Ore Holdings from founder Mr Derek Ammon.

Australian Capital Equity will pay AUD 5.9 million upfront for 14.8 million IOH shares at 40 cents each for an initial 19.9% stake. Subject to approval from Iron Ore Holdings shareholders, Mr Ammon will then sell his remaining 15.18 million shares at the same price to give Mr Stokes a controlling 40% interest.

Mr Robin Waters director of Australian Capital Equity described the move as a portfolio investment that would give Australian Capital Equity exposure to the emerging junior iron ore sector. He said “It was an opportunity that was presented to us where a major shareholder was exiting and it looks a very interesting company from an exploration potential point of view. It is a portfolio investment, and not a corporate play.”

After disappointing first up drilling results from its Lamb Creek leases, near the big Yandi and Yandicoogina mines operated by BHP Billiton and Rio Tinto, Iron Ore Holding has expanded its footprint in the area and has confirmed an initial Yandi style resource of more than eight million tonnes grading 58.1% iron at its Phil’s Creek lease. A scoping study into a 1.5 million tonnes a year starter mine is due for completion in September.

Other investors include Mr Stan Perron, Mr John & Craig Bond and Japanese metals giant Sumitomo.

Siemens to supply automation for 2 Chinese HSM

Metals Technologies a Division of the Siemens Industrial Solutions and Services Group announced that it received orders from two Chinese steel producers to supply automation systems for their new hot strip mills.

One steel producer, the Xin Yu Iron and Steel Group in Jiangxi province, operates a production complex including wire rod mills a beam rolling mill and plate rolling mills. The new hot rolling mill was designed to produce high quality hot rolled strip with widths of 750mm to 1430mm and thickness of 1.2mm to 16 mm. A total of 3 million tonnes of hot strip will be produced per year. The range of products will include carbon steel, HSLA steel, silicon steels and modern multiphase steels.

The other steel producer, located on the Chinese East coast, is now building a hot strip mill, which, in the first phase of expansion is to supply 2.5 million tonnes of wide hot strip per year and in the final stage, 5 million tonnes per year. The plant has been designed for hot strip with widths of between 1200mm and 2000mm and thickness of 1.5mm to 25.4mm. The maximum weight of each coil is 43 tonnes with coil diameters of 1000mm to 2500 mm. The product spectrum ranges from simple carbon steel and low alloy steels to high quality carbon steels. It also includes application steels for bridges, pipes, pressure vessels, automotive manufacturing, shipbuilding and welding steel grades.

The scope of supply includes all the basic and process automation as well as the visualization systems. Siemens is supplying the basic and process automation for both of these plants, from the furnace exit side for the roughing and finishing mills, to the laminar flow cooling sections and up to the coilers, including the coil conveyors.

Integrated HMI systems with easy to use process and plant diagnostic functions will facilitate operation of the plants. Central components of the automation solutions from Siemens are the process models for automatic presetting of the roughing and finishing mills, the models and control systems for determining and adhering to the strip width, the integrated profile and flatness model of the finishing mill as well as the Microstructure Target Cooling strip cooling model. All the used components, systems, controllers and models are parts of the integrated Siroll HM concept for hot rolling mills. The high degree of automation enables fully automatic operation of the plants with fewer personnel. The automation equipment is characterized by a high degree of standardization. This ensures rapid production start up and high plant availability while reducing maintenance to a minimum. For this hot rolling mill, Siemens is also supplying the Sinamics SM 150 fed main drives. This part of the contract will be handled by Siemens Ltd China. Siemens is also responsible for supervising installation of the supplied systems as well as for commissioning. The mechanical equipment of the hot-rolling mills will be provided by Chinese companies.

China approves ArcelorMittal stake increase in Valin

Bloomberg reported that ArcelorMittal was cleared to pay about CNY 1.15 billion (USD 151 million) to increase its stake in Hunan Valin Steel Tube & Wire Co.

As per report, China’s ministry of commerce approved Valin Steel's plan to sell 49.3% of 520 million new shares to Arcelor Mittal.

Mittal Steel had announced in September 2005 that it has received final approval relating to its acquisition of 36.67% of Hunan Valin Steel Tube & Wire Company for a total consideration of USD 338 million.

Hunan Valin is one of the largest steel makers in China with annual steel production capacity of 8.5 million tons. It is listed on the Shenzhen Stock Exchange.

Chinese steel scenario numbers for H1 of 2007

According to the latest statistics released by China’s National Bureau of Statistics, the production levels of all items related to Chinese steel industry during June 2007 and January to June 2007 period have reported very huge YoY increase.

In million tonnes

(Sourced from MySteel.net)

Corus Engineering to supply steel for Boeing 787 Dreamliner

Rotherham based Corus Engineering Steels has announced its participation in the launch of Boeing’s new 787 Dreamliner. Through its long term contract with direct supplier Messier Dowty, Corus Engineering Steels is providing high strength, remelted steels for the aircraft’s landing gear components. Corus Engineering Steels supplies Messier Dowty through its service facility in Bolton, which manages inventory to suit Messier Dowty’s forward schedules at its sites in Europe, Asia and North America.

Mr Peter Gill commercial manager specialized products at Corus Engineering Steels said that "Corus is delighted to be supplying high grade, precision steels to Boeing’s new, environmentally progressive 787 Dreamliner. Corus’ technical expertise allows us to continually improve the demanding mechanical properties of steel required by the industry."

Mr Andrew Houghton Messier Dowty group commodity lead buyer added that "Corus’ world class facilities together with the proven integrated capability between their mill and aerospace service centre made them the supplier of choice for the high purity steel we require in developing the landing gear for the Dreamliner fleet."

Corus Engineering Steels has been a leading manufacturer of aerospace steels for more than 50 years. Steels for landing gears is required to withstand the significant safety critical pressure that the landing gear are subjected to every time a Dreamliner takes off and lands on the runway. It also supplies specialized steels, which are able to withstand extremely high temperatures, to Rolls Royce for use in Dreamliner engines.

Yuanbaoshan starts 1.2 million tonne plate mill

It is reported that China’s Yuanbaoshan Industry Company has invested its new 2,300mm plate line with annual capacity at 1.2 million tonnes. This new line can supply the steel plate for the size range with thickness between 6mm and 30mm and width up to 2,150mm.

Yuanbaoshan announced that it would consider upgrading the slab caster if the new plate line operates smoothly. Now it has a capacity with 1 million tonnes per year.

Yuanbaoshan was initially a slab producer, which started its production from 2003.

NLMK confirm compliance with ISO 14001

NLMK announce that its Environment Management System has passed an audit for compliance with the international standard ISO 14001:2004 “Environment management system” conducted by an independent certifying body Germany’s TÜV CERT. NLMK also passed a recertification audit of its Quality management system to comply with the requirements of ISO/TS 16949:2002 Quality management systems. Particular requirements for the application of ISO 9001 2000 for automotive production and relevant service part organizations.

Under the audit procedure at NLMK’s steel production site in Lipetsk the TUV CERT experts have investigated all management system processes, workflow procedures and operating activities of production units and technical support services. The auditors have confirmed NLMK’s compliance with international environmental requirements and automotive industry quality standards.

The recertification audit confirmed compliance of NLMK’s Quality management system with the requirements of ISO/TS 16949 2002, extending the scope of this certificate to the BOF shop products.

Management systems applied at NLMK are certified by the certification authority TÜV CERT and conform to the international standards ISO 9001:2000, ISO/ 16949 2002 and ISO 14001 2004. The Company’s policy is aimed at further implementation and development of the systematic methods of business management. By the end of 2007 NLMK is planning to pass a final certification audit for the compliance with OHSAS 18001 “Health and safety management systems” conducted by the international certification authority Bureau Veritas Certification.

Ornasteel eying strong growth

It is reported that Malaysia based Ornasteel Holdings Bhd is expected to ride on the wave of optimism for steel players amid a progressive release of projects under the 9th Malaysia Plan due to rising demand for flat steel and firmer steel prices. For the January to March 31st 2007, Ornasteel posted a net profit of MYR 22.7million. Ornasteel indicated that the second quarter performance would show a continuous upward trend.

Ornasteel, which commenced its new rolling plant in April 2007, had moved up the value chain via the introduction of thinner cum higher grade cold rolled coils, hence improving competitiveness, lower import and better profit margin. The new plant, with capacity of 180,000 tonnes per year has raised total cold rolled coils capacity by 40% to 624,000 tonnes. The expansion will increase sales of cold rolled coils, galvanized iron and pre painted galvanized iron especially in the second half onwards.

Ornasteel also said that it has managed to negotiate for higher import quota for hot rolled coil, as the supply from Megasteel remained insufficient. It said “Given that international hot rolled coil always trades at a discount against Megasteel’s hot rolled coil, profit margin is expected to improve.” Besides, Ornasteel was saving MYR 8 million annually after the successful conversion to natural gas to improve efficiency.

Ornasteel is 45.4% owned by parent China Steel Corporation and is the market leader with 66% share in cold rolled coils and also a leading player in galvanized iron and pre painted galvanized iron, with some 26% share each. Ornasteel Holdings Berhad principal activities are manufacturing and marketing of cold rolled steel, hot dip galvanized steel and pre painted galvanized steel products. Other activities include investment holding and provision of management services. It operates in Malaysia, Asia Pacific, Europe and other countries.

Lockout at Solid energy mines ends

It is reported that the lockout of more than 200 coal miners, which sparked a series of strikes at other mines in New Zealand has ended. As per reports, the coal miners at Solid Energy's Rotowaro mine had been locked out for three days. This had lead to miners at four other Solid Energy mines, on the West Coast, in Southland and in Waikato, going on strike in support of the locked out workers.

The Engineering, Printing and Manufacturing Union, which represents the miners, says the lockout was ended after the workers accepted a 4.5% pay increase from Solid Energy. They have also won the night shift allowance they had been seeking.

However, union secretary Mr Andrew Little says Stockton coal miners are yet to reach an agreement, because they are dealing with a different contractor, Doug Hood Mining. He says there are still a couple of issues to be dealt with, but he expects a positive outcome and a vote by the end of the week.

Greenpeace challenges use of term Clean Coal

It is reported that Greenpeace has filed a complaint with the Australian Competition and Consumer Commission over a Victoria based power company HRL Limited's use of the term clean coal.

Greenpeace has argued that HRL Limited's use of the term clean coal is deliberately misleading and a potential breach of the Trade Practices Act. Greenpeace said that "It may discourage some consumers from buying green power, thinking they are actually buying clean power from coal fired generators, and it softens the process for the company to go through for the approvals of that project."

Mr Mark Wakeham energy campaigner said that Victoria state government's own data suggests a new station would increase Victoria's greenhouse emissions by more than 2 million tonnes each year. He added that "The ACCC would not let tobacco companies get away with calling mild cigarettes healthy cigarettes and they shouldn't be letting a company planning to build a polluting coal-fired power station get away with the term clean coal."

Greenpeace said that it is acting on solid legal advice in making the claims.

HRL power company has won funding worth AUD 150 million from the federal government as well as money from the Victorian government under the low emissions technology demonstration fund for the 400MW coal fired power project.

Pakistan wants Gazprom to join IPI pipeline

RIA Novosti quoted Mr Mustafa Kamal Kazi Pakistani ambassador to Moscow as saying that Pakistan wants Russian energy giant Gazprom to play an important role in a project to build a natural gas pipeline linking India, Pakistan and Iran.

Mr Kazi said that "We hope that Gazprom will become an important partner both in this project and in other projects to be carried out in Pakistan. We hope that Gazprom will make use of our proposals." He added that Pakistan is ready to make its territory available for oil and gas prospecting and production.

Iran, Pakistan and India had agreed on a formula for the price of natural gas to be pumped from gas rich Iran through the pipeline. The deal removed the main obstacle to the signing of a 3 way agreement on building the 2,300 kilometer long Iran Pakistan India pipeline with an estimated price tag of USD 7.5 billion. The first deliveries are expected in 2011.

The price formula is based on the cost of natural gas in Japan, which has been accepted as the most suitable price gauge. India and Pakistan are under US pressure not to do business with Iran in the energy sector. But the parties to the project have repeatedly stated their resolve to move forward with the key project regardless of Washington's opposition.

Fitch accords ‘BB’ rating to Evraz with stable outlook

International ratings firm Fitch Ratings has given Luxembourg based Evraz Group SA's long term issuer default and senior unsecured ratings at ‘BB’ and a stable outlook short term issuer default rating at 'B'.

Fitch said that “The ratings reflect Evraz's enhanced business profile, solid credit metrics as well as a track record of successful consolidation of acquired assets.” It added that Evraz has enhanced its vertical integration through improved self sufficiency in main raw materials, which will help limit its exposure to high and volatile raw material prices. As a consequence, Evraz's profitability compares favorably with that of its international and Russian steel peers.

Fitch also noted that Evraz's strong cash flows could absorb small to medium scale acquisitions without putting its credit metrics under pressure but warns that Evraz is not immune from rising labor and energy costs although it has successfully managed them so far.

Fitch also affirmed the ratings of Evraz's subsidiary Mastercroft Ltd at long term IDR 'BB' and short term IDR 'B'.

Antam expects to fix smelter leakage by October

Bloomberg reported that Indonesia’s metal mining company PT Aneka Tambang expects to fix a leak in its newest nickel smelter before October 2007. The report cited an Antam official as saying that the repairs may be completed in October.

Mr Dedi Aditya Sumanagara president director of Antam told reporters in Jakarta that “We are hoping we can repair it before October. We are evaluating the impact on production.”

The USD 320 million smelter had developed a leak in July 2006, which prompted a three month shutdown for repairs. The leak sprung from the furnace wall of Antam’s FeNi III smelter on June prompting the power load at the smelter to be lowered to prevent further damage.

Mr Sumanagara said earlier that Antam might not achieve its 2007 output target of 20,000 tonnes because the repairs were taking longer than the three weeks estimated initially.

Mr Scott appointed as president of American Steel and Aluminum Corporation

Novamerican Steel Inc announced that Mr Scott B Jones has been appointed Interim president of its subsidiary American Steel and Aluminum Corporation. However, Mr Bryan Jones former president will remain as Chairman and CEO.

Mr Scott Jones has been a VP secretary & director of the American Steel and Aluminum Corporation since April 1997 and has 17 years of experience in the steel industry.

Novamerican Steel Inc, based in Montreal at Canada, with eleven operating locations in Canada and eleven operating locations in the United States processes and distributes carbon steel, stainless steel and aluminum products, including carbon steel tubing for structural and automotive markets.

China to increase resource tax on lead, zinc, copper and tungsten

According to a China’s State Administration of Taxation, China will raise the resource tax on lead & zinc mines, copper mines and tungsten mines on August 1st 2007, in response to high domestic prices and to promote sustainable development in the mineral resource sector.

State Administration of Taxation said under the new policy, there will be 5 new tax brackets for lead and zinc mines, ranging from CNY10 (USD 1.32) per tonne of lead and zinc ore to CNY 20 (USD 2.64) per ton of lead and zinc ore.

The 5 new tax brackets for copper mines range from CNY 5 (USD 0.66) per tonnes of copper ore to CNY 7 (USD 0.93) per ton. Tungsten ore resource tax brackets will range from CNY 7 (USD 0.93) per tonnes to CNY 9 (USD 1.19) per tonnes. The different resource tax brackets will be allocated on the basis of metal grade, reserves and mining company ore outputs and sales revenues.

The State Administration of Taxation previously announced a resource tax on nonferrous metal mines at the end of 1993, ranging from CNY 2.0 (USD 0.26) per tonnes to CNY 4.0 (USD 0.53) per tonnes of lead ore and zinc ore, CNY 1.2 (USD 0.16) to CNY 1.6 (USD 0.21) per tonnes of copper ore and CNY 0.5 (USD 0.07) to CNY 0.6 (USD 0.08) per tonnes of tungsten ore.

However, since July 1st 1996, China reduced the resource tax on nonferrous metal ores by 30% in a move designed to encourage nationwide investment in the mining sector at a time when the domestic nonferrous metals market was depressed.

Taganrog Metallurgical awarded DIN Certificate

It is reported that Taganrog Metallurgical Works a subsidiary of the leading Russian steel pipe manufacturer TMK, was certified with TUV NORD for its seamless and welded production. TAGMET production was certified with DIN EN10210, DIN EN 10216, DIN EN 10240 and DIN EN 10255.

TAGMET production conforms to GOST, API Spec 5CT, 5L and 5D, DIN 10240, DIN 10255, DIN 10216 and DIN 10210 as well as to UNI. TAGMET is currently expanding its pipe production in accordance with API 5CT the highest American quality standard.

Aurox Resources plans to transport iron ore to Hedland through pipeline

Bloomberg reported that Perth based company Aurox Resources Limited is hoping to avoid a lengthy environmental approvals process for transporting iron ore to port through 100 kilometers long pipeline.

Mr Mick Sillcock director of Aurox Resources said that the slurry ore would be piped to the proposed new public berth in Port Hedland. He added that "We can't actually preempt the environmental process that we will be ultimately slotted in to, but we have, over the past two years, completed a lot of environmental surveys which to date nothing extraordinary has appeared from them."

Aurox Resources has an iron ore project called Balla Balla near Whim Creek in the Pilbara in North West Western Australia. It currently signed a 15 year iron ore sales agreement with closely held Chinese steel mill RockCheck Steel Group Company.

Last week, another junior iron ore company, Atlas Iron Ltd said that its mining operation faced a 6 month delay because of a public environmental review.

Northwest Pipe announces 3 promotions

Northwest Pipe Company announced 3 management promotions Mr Winsor Jenkins was named VP of Human Resources, Mr Gary Stone was named VP of Quality Assurance and Mr Greg Carrier was named VP of Purchasing.

Mr Winsor Jenkins joined the Northwest Pipe in 1998 as Director of Human Resources. Since that time, he has been instrumental in bringing new safety programs to the Company and upgrading its training programs.

Mr Gary Stone has been with Northwest Pipe for 16 years. He has led the design and development of the Company's quality assurance systems and internationally recognized certifications.

Mr Greg Carrier joined the Northwest Pipe in 1996 and ultimately was appointed director of materials in 2001. He has been responsible for managing major raw material purchases for all of the Company's locations and has recently expanded into additional purchasing activities.

Mr Brian W Dunham president & CEO of Northwest Pipe said that ''Each of these gentlemen has made a significant mark on the Northwest Pipe of today. More important is the impact I believe they will have on the Company in the future as we continue to develop and expand.''

Northwest Pipe Company manufactures welded steel pipe and other products in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products.

Pirelli to increase tyre cord capacity in Romania

It is reported that Italian company Pirelli might invest up to EUR 400 million in its tyre factory at Slatina in Romania, which opened in last autumn as the demand is expected to remain high.

Mr Marco Tronchetti Provera president of Pirelli Group said “We now own in Slatina 400,000 square meters of land of which we are now using 200,000 square meters. If the market grows and if there is a high demand, I don’t see why we could not invest up to EUR 400 million in expanding our tyre factory.”

Mr Provera said “Romania has a strategic position and a great willingness to grow. These things, apart from the fact that Eastern Europe has 120 million inhabitants and Romania is embracing a consumer mentality will boost the Pirelli investment.”

The tyre factory in Slatina opened in October 2006 with a EUR 170 million investments being designed to accommodate a maximum output of 4.5 million tyres per year. In addition EUR 40 million have been invested in a metal cord factory with designed output of 30,000 tonnes. Pirelli is investing this year EUR 80 million in its tyre plant in Slatina and in its metal cord plant and estimates a production of 2 million tyres in 2007 and 19,000 tonnes of metal cord. Pirelli has set a target of 3.9 million tyres in Slatina and 22,000 tonnes metal cord in 2008.

Pirelli Tyre is the world’s largest manufacturer of premium tyres running 24 plants in 12 countries in the world and points of sale in 116 countries.

Klöckner prices convertible bond offering

The management board of Klöckner & Company AG announced the pricing of its offering to institutional investors outside of the US only of EUR 325 million, senior unsecured convertible bonds including the immediate exercise of the increase option of EUR 25 million.

The Bonds will be issued by Klöckner & Company Finance International SA a wholly owned Luxembourg subsidiary of Klöckner & Company guaranteed by Klöckner & Company and will be convertible into existing or new shares of Klöckner & Company. The Bonds will have a maturity of five years and a coupon of 1.50%. The conversion price has been set at EUR 80.75, which represents a premium of 35% above the reference price of EUR 59.8146 and approximately 405% above the IPO price.

The issuer has granted the lead managers a greenshoe option of up to EUR 25 million to cover over allotments exercisable until the settlement date. The issue size can therefore reach up to EUR 350 million, which based on the conversion price, could result in up to approximately 4.3 million shares underlying the bond at the outset.

Dr Thomas Ludwig CEO of Klöckner & Company AG said that "We are pleased about the successful placement of the convertible bonds. The proceeds from the sale of the convertible bonds will be partly used for continuing our successful acquisition strategy."

Deutsche Bank AG and JPMorgan are acting as joint bookrunners and lead managers for the Offering.

Klöckner & Company is the largest independent producer and distributor of steel and metal products in the European and North American markets combined. The core business is the storage and distribution of steel and non ferrous metals. About 200,000 active customers are supplied through approximately 250 distribution locations in 15 countries in Europe and North America.