SAIL reduces prices of flat steel products

Steel Authority of India Limited has reduced prices of flat steel products by INR 500 per tonne to INR 1,000 per tonne from July 1st 2007 in line with the prevailing market situation.

SAIL releases added that “However, though the demand for GP & GC sheets, which have large-scale requirement for roofing purposes, rises during the monsoons, prices for these products have also been lowered in order to make these products more affordable for the general public.”

Prices of long steel products like TMT bars, etc., have been kept unchanged.

TKES India commissions hydrogen plant at Nashik

BS reported that ThyssenKrupp Electrical Steel India Private Limited has commissioned its hydrogen unit adjacent to its facility at Gonde near Nashik in Maharashtra.

The report cites a senior company official as saying that “We have set up a hydrogen plant adjacent to ThyssenKrupp's Gonde facility, near Nashik, at an investment of INR 30 crore. The capacity of the hydrogen plant is 800 cubic meters per hour.”

Hydrogen is used as a protective atmosphere, while processing electrical steel strips at high temperatures.

ThyssenKrupp Steel’s subsidiary EBG had acquired the steel division of Raymond Limited having 0.2 million tonne capacity for INR 412.26 crore in September 2000 and started commercial operations by setting up a subsidiary TKES India. TKES India manufactures electrical steel and CR products at its Gonde unit.

Indian trade deficit in April to May surges by 61.9% YoY

Cumulative value of India’s merchandise exports for the period April to May 2007 is INR 92944.16 Crore (USD 22.436 billion) up by 20.35% YoY as against INR 84243.20 Crore (USD 18.639 billion) in April to May 2006.

Cumulative value of imports for the period April to May 2007 is INR 148053.58 Crore (USD 35.713 billion) up by 33.1% YoY as against INR 121304.73 Crore (USD 26.841 billion) in April to May 2006.

The trade deficit for April to May 2007 is estimated at (USD 13.276 billion) which was higher than the deficit at USD 8.201 billion during April to May 2006.

In USD million
Exports include re export also
Figures for 2007 are provisional
Source Directorate General of Commercial Intelligence & Statistics

Orissa MLAs question naming of highway after POSCO project

SNS last week reported that members of legislative assembly of Orissa created a chaos over reports that the government is considering funding a highway for linking POSCO’s proposed steel project in Orissa and would name it as POSCO Highway.

Orissa MLA’s opined that no self respecting person or state would ever agree to such a proposal.

Mr Arun Dey MLA said that nowhere in the world were highways named after private companies. He wondered why the prime minister was taking so many meetings on POSCO project while the same keenness was lacking on several other equally important ones like the oil refinery.

As per earlier reports, the INR 4,000 crore highway is part of phase-III of the National Highways Development Program and would be constructed on built operate transfer model and would be completed by 2010. The POSCO package consists of 7 road stretches, including Panikholi-Keonjhar-Rimoli on national highway-215 and Chandikhole to Duburi on NH-200 and the Cuttack to Paradip state road, jointly funded by the Orissa government, Paradip Port Trust and the roads ministry, will also help serve the transport of goods to and from POSCO’s steel plant.

Government urges NGO to support its energy conservation drive

PTI reported that Indian government has urged non government organizations to come forward to help in its initiative toward energy conservation.

Mr Sushi Kumar Shinde union power minister recently said that "If we conserve about 20,000MW of energy, we save about INR 80,000 crore in monetary terms and the best way forward would be to have propaganda by the NGOs."

Mr Shinde, who released the inaugural issue of Urjavaran, a magazine on energy conservation, also expressed his dissatisfaction over the speed of capacity addition in the power sector and also on the speed of the awareness program for energy conservation. He added that "I am not satisfied with the speed of capacity addition."

He said that Urjavaran Foundation is the first NGO to come forward for such an initiative and expressed hope to see more organizations coming forward to create awareness about the Energy Conservation Act among other things.

Ispat Industries raw material feeder conveyor system damaged by rain

Ispat Industries Limited announced that due to high velocity wind and heavy rains during the last two days, a section of its conveyor belt system, which transports raw material from the adjoining Dharamtar Port to its plant at Dolvi near Alibaug in Maharashtra, slipped off and fell on the railway tracks outside the plant site on July 2nd 2007.

The release said that “There has been no loss of life or any injury due to the accident and there is no loss of production.”

The release added that “The company's special task force, with the help of other officials of the company and senior district authorities, are clearing out the slippage over the railway track on an emergency basis so that railway movement on the track is not affected. The company is also taking necessary steps to ensure that the system is restored shortly within a week's time.”

Indian infrastructure needs USD 384 billion in 11th plan

India is facing a big challenge in the field of infrastructure and would require investment to the tune of USD 384 billion in the 11th Plan period to bring up its infrastructure to world standards.

Mr P Chidambaram finance minister of India while addressing the faculty and students of the London Business School said that the robust growth in GDP has exposed the grave inadequacies in the country’s infrastructure sectors. He said "It is now widely acknowledged that the state of the infrastructure is a drag on the economy, perhaps by as much as 1% to 2% a year."

He, however, expressed confidence that India would within the next 10 years succeed in putting in place infrastructure that would equal the best in the world and outlined some of the innovative measures adopted by the government like viability gap funding and establishment of India Infrastructure Finance Company Limited.

The Indian government has also asked the Reserve Bank of India to lend USD 5 billion from the foreign exchange reserves to the India Infrastructure Finance Company Limited to enable the company to lend to infrastructure projects for their capital expenditure.

Shah Alloys puts 2 wheeler venture on hold

Ahmedabad based special steel maker Shah Alloys announced its board of directors at a meeting held on June 30th 2007 has decided not to take up into automobiles manufacturing project for the time being.

The announcement added that it would be taken up at appropriate time in future.

Shah Alloys had announced on May 14th 2007 that it plans to enter into automobiles manufacturing particularly in motorcycles and scooters segment.

Suzlon and Vestas to set up wind energy projects in Kerala

It is reported that Kerala state electricity board has decided to tie up with Suzlon Energy and Vestas India to kick start its wind energy sector.

Suzlon Energy and Vestas India have been given technical approval for setting up wind energy projects at Agali in Palakkad and Ramakkalmedu in Idukki district. While Suzlon will establish a 4.8MW capacity project in the first phase, Vestas will set up a project with a capacity of 9.75MW initially.

Mr AK Balan electricity minister of Kerala said that Kerala government is also planning to revive some of the mini hydroelectric projects in the state. He said that 4 mini hydel projects have been established in the state but 14 others that had been proposed but subsequently turned defunct. He said that the government have taken preliminary steps to renew the MoU signed with a Chinese public sector company in 1998 for setting up 18 mini hydro electrical projects in the state and had held talks with representatives of the Chinese firm during a recent visit to China.

Maharashtra asks BHEL to supply pending power plants

It is reported that Bharat Heavy Electricals Limited has assured the Maharashtra government to stick to its commitment to supply boiler turbine generator for total power generation of 2,000MW to Maharashtra State Power Generation Company in the 11th Plan period.

BHEL’s assurance came during the meeting between Mr Santosh Mohan Dev union minister of heavy industries & public enterprises and Mr Dilip Walse Patil energy minister of Maharashtra. Mr Dev who recently visited MahaGenco’s Paras project, said that BHEL would be able to complete necessary orders by July, so that the project with 250 MW which was to come in the 10th Plan, can start generation in full swing. He added that BHEL and MahaGenco have been asked to work together to compress the schedule for the completion of projects.

Mr Walse Patil also requested Mr Dev to advise BHEL to expedite the commissioning of the projects under execution and to advance the commissioning of the 500 MW Khaparkheda project.

MahaGenco has placed boiler turbine generator orders for 250 MW each projects at Parli and Paras, 500 MW at Khaparkheda and 1,000 MW at Bhusawal. But, BHEL could not fulfill its promise to supply boiler turbine generator of 250 MW each for MahaGenco’s Parli and Paras in the 10th Plan period.

Simplex diversifying into oil drilling sector

It is reported that Simplex Infrastructure Limited is foraying into the oil drilling sector to consolidate its presence in different mining segments.

Under its diversification plan Simplex has entered into a two year drilling contract with Oil India Ltd for on shore oil exploration and one rig of 1,500 HP costing about INR 50 crore has already been ordered and is expected to be commissioned by October 2007 and it has plans to go in for more rigs after gaining experience in contract on-shore oil drilling business.

Simplex Infrastructure Limited is a civil engineering company with specialization in foundation engineering and concrete structure.

Severstal Q1 net profit up by 82.5% YoY

Severstal reported first quarter results reflecting a significant improvement as compared with Q1 of 2006 and a continuation of positive Q4 of 2007 trends.

Russian Steel continued the good performance of Q4 2006 with an excellent first quarter showing a 52.7% increase in EBITDA compared with the same period last year. Prices continue to be strong in both Russian and export markets and there has also been a significant improvement in volumes compared to Q1 of 2006.

In USD million

Severstal’s Mining business has also had an exceptional first quarter both compared to Q1 of 2006 and Q4 of 2006: EBITDA was up by some 50% YoY as compared with the same period last year and by 42.7% QoQ as compared with Q4 of 2006. Prices are up on average by 14% with a similar growth in volumes.

Severstal’s overseas business each produced improving EBITDA margins for Q1 of 2007 over Q4 of 2006. Severstal North America reported a nearly 6.3% QoQ improvement in EBITDA compared with Q4 of 2006. Lucchini’s EBITDA for the first quarter is up nearly 39.8% YoY compared with the same period last year as a result of higher prices and volumes, and favorable raw materials prices.

Primary drivers of this increase were sales volumes of hot rolled strip and plate, long products and metal ware products, which rose by 28% YoY, 70.9% YoY and 90.4% YoY respectively. Average sales prices for coal and coking coal concentrates went up by 17.4% YoY, by 39.7% YoY for long products and by 24.6% YoY for metal ware products.

Mr Alexei Mordashov CEO of OAO Severstal said “I am pleased to report that Severstal has made a positive start to the new financial year with continued growth. We are building successfully on the changes we made last year to provide us with a strong platform for the future.”

NLMK upgrades CRGO mill to double capacity

NLMK has upgraded its reversing cold rolling mill for production of cold rolled grain oriented electrical steel to raise its capacity from 67,000 tonnes per year to 130,000 tonnes per year and increase production of steel with advanced magnetic properties thus replacing two obsolete production lines.

During its upgrade the mill was equipped with automatic process control systems, including hydraulic screw down device control, automatic gauge control and main electric drives that provide for high quality of the strip.

The reversing mill performs second cold rolling of steel strip of 1,050 mm wide from 0.6mm to 0.85mm down to 0.23mm to 0.5mm at the speed of 8 meter per second after decarburization annealing.

This project has been carried out within the framework of the 2nd phase of NLMK’s Technical Upgrading Program during 2007 to 2011 aimed at increasing the output of high value added products. It is aimed at increasing finished flats output from 5 million tonnes to 9.5 million tonnes per year through the modernization of the existing NLMK’s rolling facilities and the acquisition of new rolling assets at total investment of about USD 4 billion.

BHPB sells Koornfontein Mine & RBCT allocation

BHP Billiton announced that it has reached closure on the sale of Koornfontein Mine together with 1.5 million tonnes per annum of Richards Bay Coal Terminal entitlement to an entity controlled by a black economic empowerment consortium. Economic benefit of the mine passed on July 1st 2006 being the Value Date with deal closure being effective July 1st 2007.

In addition to a cash consideration for the transaction, BHP Billiton will receive further compensation for potential future Eskom coal sales. The aggregate consideration in current money terms is approximately ZAR 430 million (USD 60 million). BHP Billiton has provided ZAR 70 million (USD 10 million) in vendor finance to the BEE consortium.

The black economic empowerment consortium which holds 50% and one share in the new entity is led by Siyanda Resources Limited and AKA Resources Holdings Limited and includes various broad based groups as well as a Koornfontein employee trust Coronation Capital Limited and Investec Bank Limited will together hold 50% less one share in the new entity.

Koornfontein Mine is a thermal coalmine situated 200 kilometers east of Johannesburg in Mpumalanga province of South Africa. It supplies energy coal to both the export and domestic energy coal markets. The mine produced 3 million tonnes of saleable export quality steam coal in the twelve months to June 2006 and has a workforce of some 700 employees and 580 contractors. To the date of the sale Koornfontein Mine was 100% owned by BHP Billiton Energy Coal South Africa.

Mr Dave Murray president of BHP Billiton Coal said that “This transaction forms an integral part of our Coal empowerment strategy in South Africa which involves the sale of operating entities to BEE controlled entities. This strategy commenced with the Eyesizwe assets, was followed up by the sale of Delmas now Koornfontein and will culminate in the sale of Optimum in due course."

voestalpine will not raise Boehler offer after initial period expires

voestalpine AG has againg confirmed its previously published statement that it will not increase the bid price for shares of Böhler-Uddeholm AG.

A voestalpine release said that "In order to avoid any speculations voestalpine AG furthermore confirms at the suggestion of the Takeover Commission, that it shall not only refrain from increasing the bid price until the end of the sell out period on September 6th 2007 but also during the nine month period within which an increased bid price would require additional payments to be made to all Böhler-Uddeholm shareholders who have accepted the offer.”

The release added that “In practice, this means that voestalpine AG confirms by means of a self commitment declaration that there will be no bid price increase, at any rate not until June 6th 2008 which is the period of time that is relevant for an additional payment within the meaning of the Takeover Act.”

MV Pasha Bulker re floated after 3 weeks

It is reported that cola carrier MV Pasha Bulker, aground at Nobby’s beach near Australian Newcastle Port for more than 3 weeks has finally been re floated.

Detailed assessments of the ship's hull are currently being carried out more than 11 nautical miles out to sea to determine what repairs the bulk carrier will need.

Mr Joe Tripodi port minister of NSW however said that the story of the Pasha Bulker is far from over. He said "It is far from over, there's lots of work to do. Crews are preparing to do the air surveillance, beach inspections are occurring right now. e continue on with the vigilance that has been employed to date in making sure that the coastline is protected from oil spills."

Air and land exclusion zones are being disbanded this morning but a sea exclusion are will remain in place until three sea anchors are removed.

SDI completes Techs purchase

US’s leading steel producer Steel Dynamics Inc announced that it has completed its acquisition of Pennsylvania based flat rolled steel galvanizing company the Techs for USD 370 million inclusive of certain purchase price adjustments made at closing.

The deal consists of 3 facilities in the Pittsburgh area namely GalvTech, MetalTech and NexTech, which specialize in the galvanizing of specific types of flat rolled steels.

The new plants will operate under their current management as the Techs, an independent Steel Dynamics business unit reporting to Mr Mark Millett president & COO of SDI for flat rolled steels and ferrous resources. Beginning in July 2007, the Techs’ financial operating results will be included in SDI’s steel operations reporting segment.

Mr Keith Busse chairman & CEO of Steel Dynamics said that “The Techs is an excellent company that has achieved notable commercial success. We welcome the Techs employees to the SDI team. The employees’ esprit de corps rivals that of our own plants. The Techs is a world class customer oriented company and we are proud to become a part of their success. This acquisition is strategically important to SDI as we look to the future growth of our flat-roll business. The Techs’ highly productive and efficient galvanizing plants have a strong, established customer base in somewhat different markets from our existing business, and therefore are a natural complement to our existing galvanizing business.”

Steel Dynamics shipped 958,000 tons of galvanized steel in 2006 and generated revenues of USD 811 million. Its 3 facilities have a combined capacity to galvanize about 1 million tons of steel per year.

Evraz commences disposal of selected assets of Highveld

Evraz Group SA announced that it has formally commenced the process of disposing of some of the selected assets of Highveld Steel and Vanadium Corporation Limited in accordance with Evraz's commitments to the European Commission and the South African Competition Tribunal.

Evraz release said that “Prospective purchasers are expected to include established vanadium industry participants other steel industry players and private equity investors. The competition authorities require that the ultimate purchaser must be independent of and unconnected to Evraz.”

The release added that “Highveld have the financial resources proven expertise and incentive to maintain and develop the divested business as a viable and active competitive force in competition with Evraz and other competitors and neither be likely to create competition concerns nor give rise to a risk that the implementation of the divestiture will be delayed and must in particular reasonably be expected to obtain all necessary approvals from the relevant regulatory authorities for the acquisition of the divested assets.”

Evraz has appointed Standard Bank of South Africa Ltd to advice on the divestiture.

Coal mine accidents in China in H1 of 2007 down by 18.5 YoY

Xinhua reported that, based on the figures released by the China's safety watchdog the number of coal mine accidents in China in the first half of 2007 totaled 1,066 down by 18.5 YoY as against 1308 in 2006.

According to officials with the China’s State Administration of Coal Mine Safety and the State Administration of Work Safety the number death toll in H1 of 2007 was 1,792, down by 14.3% YoY and the death ratio in producing 1 million tonnes of coal was 1.633 down by 19.9% YoY.

Mr Zhao Tiechui Directo of State Administration of Coal Mine Safety said that "Though we have made some progress, we should still be aware of the severe situation regarding coal mine work safety."

Mr Zhao said that illegal coalmines were still the main cause of coalmine accidents and there was a rise in accidents involving gas explosions. He also ordered all branches of the State Administration of Coal Mine Safety to continue strengthening work safety supervision, close illegal and small coal mines without safe working conditions and harshly punish those responsible for accidents.

US weekly steel production down by 6.3 % YoY

American Iron & Steel Industries reported that in the week ending June 30th 2007, US’s raw steel production was 2.067 million tons while the capability utilization rate was 86.4%. Production was 2.207 million tons in the week ending June 30th 2006 while the capability utilization then was 92.1%. The current week production represents 6.3% decrease from the same period in 2006.

Production for the week ending June 30th 2007 is down by 1.6% from the previous week ending June 23rd 2007 when production was 2.101 million tons and the rate of capability utilization was 87.8%.

Adjusted YTD production through June 30th 2007 was 52.211 million tonnes at a capability utilization rate of 84.9 %. That is a 6.9% decrease from the 56.111 million tons during the same period 2006 when the capability utilization rate was 90.5%.

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.

Small shareholders of Arcelor ask for better swap ratio

Thomson Financial quoting a copy of a letter to ArcelorMittal's board of directors from Arcelor’s small shareholder association Appac, obtained by Agence France-Presse, reported that Appac members will oppose the merger of Arcelor with Mittal Steel if large funds are granted a more favorable share exchange ratio.

The report said that Mr Didier Cornardeau chairman of Appac in the letter said that “'Through Appac, individual shareholders are calling on you to uphold, maintain and confirm the exchange ratio of eight ArcelorMittal shares for every seven Arcelor shares held.”

The letter further said that “The group's individual shareholders oppose plans by speculative funds owning shares in Arcelor, who are seeking an exchange ratio of 13 ArcelorMittal shares for every seven Arcelor shares held. The individual shareholders will defend their rights by opposing the merger if those funds win their case.”

Appac claims to represent 3% of Arcelor's shareholders.

Territory calls on ConsMin to allow due diligence

Australian iron ore miner Territory Resources Limited, after Consolidated Minerals Limited refused to allow Territory a chance to conduct due diligence on the company, said that Consolidated Minerals Limited shareholders should be given the opportunity to decide whether its takeover proposal for the company is superior. Territory said that it is surprised with the ConsMin's board's decision to deny its shareholders an opportunity to consider an alternative proposal.

Mr Michael Kiernan chairman of Territory said "The shareholders of Consolidated Minerals should be provided with an opportunity to receive a superior alternative proposal to the scheme currently before them.”

Mr Kiernan added that "Following reasonable corporate due diligence, Territory and its substantial investor and marketing group have the capacity to provide Consolidated Minerals shareholders with a superior alternative proposal, and, therefore, the Consolidated Minerals board should let their shareholders have an opportunity to decide."

Mr Kiernan said that "If the Consolidated Minerals' board, on behalf of their shareholders, are concerned about the value of Territory's stock, we have the flexibility to frame an alternative proposal with more weighting to cash or increasing the number of Territory shares offered but require the benefit of due diligence.”

Territory launched its indicative bid of AUD 1.5 in cash and 1.5 Territory shares for every ConsMin shares last week, with backing from commodity traders Noble Group, DCM DECOmetal International Trading and investment bank Lehman Brothers. But ConsMin threw its weight behind AUD 382 million deal by a Pallinghurst Resources led consortium by saying that Territory bid as lacking strategic vision and certainty.

PT Antam lowers 2007 output guidance due to delay in smelter repairs

It is reported that Indonesia’s largest nickel mining company PT Aneka Tambang, may not be able to achieve its 2007 output target of 20,000 tonnes as repairs to its newest smelter, which leaked last month, are taking longer than expected.

Mr Dedi Aditya Sumanagara president of Aneka Tambang told reporters in Jakarta that “We are disappointed that the repair will take longer than we had previously expected. It will be difficult to achieve 20,000 t this year.”

Antam had announced on June 19th 2007 that it would retain the full year target despite the smelter’s leak, which happened on June 16th 2007. It had said that repair work at smelter was likely to be stopped for three weeks, as there was minimal damage from the leak.

South Korean Dong Kuk plans a steel plant Dung Quat in Vietnam

It is reported that South Korean Dong Kuk Steel Group plans to build a steel plant at Dung Quat Economic Zone of Vietnam at an investment of USD 1 billion. Details on the mill’s production capacity and construction schedule are not yet available.

If approved, the company would build a 300 hectare factory specializing in manufacturing steel sheets, steel bars and other steel products for the Vietnamese market.

To date, Dung Quat Economic Zone has licensed projects worth over USD 5 billion and has some 35 additional projects pending. The EZ has 46 operational or under construction projects.

Shanxi to close down further 20 million tonne coking capacity

Xinhua reported that Shanxi Province has forced out some 50 million tonnes outdated coke capacities during since 2003 and further plans to close 20 million tonnes within next two years with 8.59 million tonne in 2007 itself.

Shanxi province has closed down a number of capacities made by the clay coke oven, refined clay oven and small machinery oven. It's learned some 250 small machinery ovens were shut, getting rid of 30 million tonne of outmoded coking capacity.

Now Shanxi aims to reduce further 20 million tonne capacity to limit coking capacity at 120 million tonnes with large machinery coke ovens accounting for 95%.

Shanxi is the largest coke producer in China. Its coke output reached 92 million tonnes in 2006 representing one third of China’s and 20% of the world output. It reported 13 million tonne export volume accounting for about 40% of the world coke trade volume.

Dofasco bags steel supply contract from Mercedes

Hamilton Spectator reported that ArcelorMittal’s Hamilton based unit Dofasco Inc has secured a contract to supply steel to Mercedes' plant at Tuscaloosa in Alabama. Under the deal Dofasco would supply 4,000 tonnes of coated steel for inner parts of Mercedes M class SUV.

Ms Monique Biancucci a corporate account manager at Dofasco said that the first shipments would be transported to Mercedes by rail in September 2007. She said Mercedes auditors from Germany and the United States evaluated Dofasco against German Automotive Association standards before selecting it as a supplier.

Mercedes' plant at Tuscaloosa manufacturers about 110,000 units of M class SUVs each year. Additional 40,000 vehicles, including the G-class and R-class models, are also made at the facility.

Dofasco's parent company ArcelorMittal already supplies about 200,000 tonnes of steel to Mercedes' European operation.

Mechel board members elected at AGM

One of the leading Russian mining and metals companies Mechel OAO has announced that during its AGM following board members have been elected. The number of directors on the board remains unchanged from the last year.
1. Mr Igor Zyuzin
2. Mr Alexey Ivanushkin
3. Mr Vladimir Polin
4. Mr Roger Gale as an independent director
5. Mr A. David Johnson as an independent director
6. Mr Serafim Kolpakov as an independent director
7. Mr Alexander Yevtushenko as an independent director
8. Mr Valentin Proskurnya as an independent director
9. Mr Alex Polevoy

During the first meeting of the board of directors that followed the Annual General Shareholders’ Meeting, Mr Valentin Proskurnya was elected as Chairman of Mechel OAO.

Mr. Proskurnya has more than 37 year of experience in engineering, financial and managerial sectors of the coal industry. He has been a member of the board of directors of Mechel OAO since 2003 and served as an independent member of the board of directors since 2004. Mr. Proskurnya was a member of the Board of Directors of the Magnitogorsk Iron and Steel Works from 2004 to 2005. Previously, he was Deputy CEO of Mechel Trading House OOO, CEO of Mechel Trading House OOO and First Deputy Director of Southern Kuzbass Coal Company.

Sojitz buys 10% stake in Moolarben coalmine in Australia

Bloomberg reported that Japanese Sojitz Corp has bought a 10% stake in the planned AUD 350 million Moolarben coal mine from Australian mining company Felix Resources Ltd. The report added that Sojitz, which also has a share in Felix's Minerva mine, paid AUD 90 million for the stake in the project near Mudgee in New South Wales.

Brisbane based Felix in a statement said that Sojitz also obtained the marketing rights for coal produced at the mine.

Mr Brian Flannery MD of Felix said that Felix would use the funds from the sale to help complete financing for the project.

Moolarben coalmine, which could produce 8.5 million tonnes of coal, a year over its 25 to 30 year life, will more than double Felix's managed output of 6 million tonnes.

Felix is also reported to be in talks to sell a 10% stake in the project in New South Wales state to other Asian power generators.

Territory Resources buys stake in Tambo manganese project

It is reported that Australian iron ore miner Territory Resources Limited has bought a 72% stake in a manganese project in Burkina Faso in West Africa.

The agreement was signed with Weatherly International plc and Wadi Al Rawda Industrial Investments Llc.

Territory may spend as much as USD 450,000 on a preliminary study at the Tambao project for the stake.

TMK’s Volzhsky Tube Plant wins best Russian exporter to CIS award for 2006

Russian pipe major TMK’s Volzhsky Tube Plant has been declared a winner of the "The Best Exporter to CIS countries" in the Russia’s steel industry category for 2006.

The competition is held annually under the auspices of Russian ministry of trade, economic development & international affairs. Its goal is to identify and promote the most efficient exporter. In 2006, the competition attracted 85 entries.

TMK exported 0.469 million tonnes of pipes in 2006, with Volzhsky Tube Plant accounting for 0.167 million tonnes to CIS.

Japanese domestic steel demand in July to September to increase by 1% YoY

Japan’s Ministry of Economy, Trade and Industry forecast that domestic steel products demand will increase by 1% YoY to 27.2 million tonnes in July to September 2007.

The demand represents 29.84 million tonnes of raw steel output, which is 2.6% higher than same period of 2006.

8 steel mills sealed off for excessive emissions in Pakistan

Daily Times reported that Pakistan government has sealed eight steel mills in Baghbanpura area near Lahore city of Pakistan for polluting the environment with excessive emission of smoke.

The report cites Mr Tariq Zaman environment district officer as saying that the campaign against the industrial units that pollute the environment by burning tyres would continue. He said “The environment department has constituted teams to monitor the industrial units that cause excessive emissions. Action would be taken against such units.”

The sealed mills include Imtiaz Steel Mills, Hafiz Steel Mills, Hanif Steel Mills, Rasheed Steel Mills, Maqsood Steel Mills, Naeem Steel Mills, Ihsan Steel Mills and Imran Steel Mills.

voestalpine AG to increase share capital by 3.81%

Thomson Financial reported that Austrian steel company voestalpine AG would increase its authorized share capital by 3.81% to around 164.44 million outstanding shares from July 4th 2007.

voestalpine said that the increase will be carried out via the issue of just over 6 million bearer shares to holders of its convertible bond issued in 2005 at a conversion price of EUR 18.75 in a conditional capital increase by voestalpine.