JSW Steel posts 26% growth in crude steel in April to June’07

JSW Steel Ltd has announced that it has registered a growth of 26% YoY in crude steel production in April to June 2007 quarter. It has also recorded healthy growth in all products except HR plates. JSW Steel attributed the higher volumes due to capacity enhancement completed in a phased manner during 2006-07.

In million tonnes
Change is with respect to April to June 2006

JSW Steel said that “Incase of HR plates, volumes were lower due to shutdown of plate mill for 25 days for modernization in May'2007.”

Orissa admits fierce resistance to industrialization over land

FE reported that the home department of Orissa government has tabled a white paper in the state assembly, which admitted that there is fierce resistance to industrialization in the state and that the affected people have been agitating against the projects in their areas.

As per report, the white paper specially mentioned the projects being undertaken by POSCO, Vedanta Resources and TATA Steel.

The CPI supported POSCO Pratirodh Sangram Samiti organized a number of road blockades and protest rallies during 2006. It once locked the revenue inspector's office too. Activists of the samiti even put up check gates on roads leading to the POSCO project site with an intention not to allow the POSCO people and the police.

The white paper has mentioned the Kalinga Nagar incident, where 13 tribal were killed in the police firing on January 2, 2006. They were protesting against the construction of a boundary wall by TATA Steel on its project site. Afterwards, tribal, as a protest against the firing, put up a road blockade on the national highway 20 under the banner of the Visthapana Virodhi Janamancha.

The alumina project of Vedanta Alumina is being opposed by the Congress backed organization, Green Kalahandi, which is instigating the local people to fight against the company.

Indian iron ore import prices increase by USD 2 to USD 3

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released on July 2nd 2007 the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

USD per tonne

The change is with respect to the prices posted on June 25th 2007. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

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

Stemcor unit BRPL acquiring land for pelletization plant

PTI reported that Stemcor’s Brahmani River Pellets Limited has started acquiring land for its proposed INR 1,485 crore 4 million tonne per annum iron ore complex at Barbil in Keonjhar district of Orissa. As per report, the project is scheduled to be commissioned by September 2010.

The project would have two separate complexes. The pelletization plant to be located at Barbil would require an investment of INR 680 crore while the iron ore beneficiation plant at Tonto Nalda in Barbil would be set up at a cost of INR 805 crore.

As per report, state run Industrial Infrastructure Development Corporation of Orissa would provide the 90 acre required for the project.

The report cites Mr Srikanta Kar deputy general manager of BRP as saying that "As soon as the process of demarcation of the land is completed, the company would start construction of its boundary wall.”

The project would require 18.3 MW of power and draw water from the nearby Baitarani River.

TATA Steel may import limestone from Vietnam

PTI reported that TATA Steel is exploring possibilities to import limestone from Vietnam to cater to its steel plants in India.

The report cites a TATA official as saying that "We are looking at possibilities for importing quality limestone from Vietnam which will help bring down the freight cost for the raw material as the country is close to India.”

The official, however, said the proposal was at an initial stage and no decision had been taken.

TATA Steel has limestone mines in Madhya Pradesh but also imports limestone from the Middle East currently.

MCL workers to go for 12 hour strike today

Statesman News Service reported that after postponing their proposed strike in February 2007, the Mining Contractors Association of Coal India Limited’s subsidiary Mahanadi Coalfield Limited has again decided to cease work for 12 hours on July 5th 2007 to press for the fulfillment of their seven points charter of demands.

The association would go for an indefinite strike from July 16th 2007 if the 12 hour strike fails to yield any result.

The main demand of the association is the payment of their service tax dues by MCL. Although service tax is not included in their rate of contract, they are paying the huge amount since the tax was applicable on them in 2002. Despite several appeals MCL is yet to reimburse the amount to the affected transporters and the surface miner owners.

The contractors are also opposing the inclusion of the tax in their rates as if the tax is included in the rate, then the bill of the contractors would be raised on the basis of the awarded rate including service tax and the amount of the bill will be in gross amount. Thus the department of service tax would demand service tax on the gross amount, which would be higher.

Apart from this, the association also put forth other demands like the closure of contract on time without any extension and the issue of guidelines to all the areas for the uniform execution of agreement. The association also demands the elimination of the price fall clause in the notice inviting tenders, which they say, is the violation of natural justice.

There are about 19 transport and surface miner contract agencies working in Talcher and the Ib valley coalfield of MCL, which account for 80% of its coal production. They are also undertaking the entire wagon loading work of MCL.

6 trapped in abandoned Murlidih coalmine in Jharkhand

IANS reported that 6 people are trapped in Coal India Limited’s Bharat Coking Coal Limited’s abandoned coalmine at Murlidih in Dhanbad district of Jharkhand on Wednesday while rescuers managed to pull out 9 miners.

As per report, the mishap took place on Tuesday when the mine roof collapsed. According to people in the area, 18 people went inside the abandoned mine through a narrow entry. 3 were outside and 15 inside when the roof collapsed.

According to BCCL sources, the mine had been closed about 20 years ago but had not been filled leading to local residents still extracting coal illegally. Illegal mining is rampant in Jharkhand. In the last 10 years, more than 500 people have lost their lives in illegal mining. According to norms, companies should close abandoned mines by filling them with sand bags.

Sinosteel to rope in Handan Steel for its steel plant in India

It is reported that Sinosteel Corporation plans to tie up with Handan Iron & Steel Group for its proposed USD 4 billion 5 million tonne steel plant in Jharkhand state of India. Mr Hong Sen Wang MD of SinoSteel India during an interview said that "We are working out the shareholding pattern. Sino will hold a majority stake in the venture."

Mr Wang informed that Sinosteel might buy iron ore locally for the 5 million ton plant until it secures a license to mine the iron ore. But Mr Wang clarified that "We want to make it clear that we are not here only for the iron ore.’

Sinosteel expects to decide on the location by August 2007 where it would need about 3,000 acres of land for the plant.

SinoSteel is one of the biggest importers of iron ore in China and has been importing iron ore from India since at least 1991.

Handan Steel is as ranked 46th steel maker in the world with 6.4 million tonne crude steel production in 2006. It was 17th largest steel makers in China in 2006.

JSW to stick to promise of shares to land owners

FE reported that JSW Steel plans to stick to its announcement of allotting equity shares to the land owners for its JSW Bengal Steel Limited’s 10 million tonne steel plant at Salboni in West Midnapore district of West Bengal. Mr Biswadip Gupta CEO of JSW Bengal Steel Limited told FE that ‘‘we stand by the commitment made by Mr Sajjan Jindal.’’

Mr Gupta said that the offer was part of a direct deal with landowners and not related to the agreement with the state government. He said "We have proposed to give equity equivalent to the valuation of land.”

The report sites Mr Gupta as saying that ‘‘Being a unique proposition, JSW is in talks with SEBI and the CLB on how to implement our proposal of giving shares to land losers, people who do not have documents like PAN cards.” Mr Gupta added that JSW’s offer is not only for the West Bengal project, but also for all projects that the group is implementing and projects already executed.

On the other hand Mr Nirupam Sen industry minister of WB told reporters that "They have told the press about giving company shares to land losers or providing employment to a member of their families. This commitment is not part of their agreement with the government. If they do it, may be it will be as corporate social responsibility.”

By announcing this measure, JSW Steel has set a new benchmark for other projects in the country.

Land acquisition for Essar’s Chhattisgarh project making good progress

IANS reported that Essar Steel’s steel plant project in Dantewala district of Chhattisgarh seems to be back on track with tangible gains in land acquisition process after almost a 2 year long wait that saw major protests by tribal over land acquisition. As per report, about 45 of the 69 affected families in the Dhurli and Bhansi villages have agreed to hand over their ancestral farmland for the project and now 24 families are yet to be convinced.

The report cites a revenue department official as saying that “Twelve families each from Dhurli and adjoining Bhansi had objected to surrendering their land for the steel plant. They have submitted their written objections to the SDM, who has fixed July 6th 2007 as the date for hearing their objections before a final preparation of land surrender papers and their submission to the district collector. Once the SDM clears all objections, the Dantewada district collector will report to the revenue department secretary for a final phase clearance for land acquisition.”

Mr HS Sethi resident director of Essar Steel said that “We are happy to know that the government has made some moves for acquiring land for Essar Steel, the company plans to embark on construction work for the plant by the end of this year. We are just awaiting the final clearance of the land. Once the government hands over land to the company, we will move fast, very fast.”

Essar Steel had signed an agreement with the Chhattisgarh government in June 2005 for setting up the 3.2 million tonnes per annum integrated steel plant in two phases in Dantewada with an investment of INR 70 billion. It had sought 1,480 acres of land or 600 hectares, 400 hectares from Bhansi and 200 hectares from Dhurli for the plant that will come up in the Bailadila hills.

Dhamra Port development on track

BL reported that the 1st phase of TATA Steel and Larsen & Toubro’s JV Dhamra Port Company Limited’s Dhamra Port in Orissa is slated to become operation in 3 years with 2 berths capable to handle 25 million tonnes of bulk cargoes like iron ore and coal annually.

Mr SK Mohapatra CEO of Dhamra Port Company Ltd told BL recently that “Barring unforeseen developments, Dhamra port will be commissioned in April 2010. The project management consultant has been appointed, financial closure concluded and the orders for supplying equipment have been placed with various agencies.”

Mr Mohapatra strongly refuted the allegation leveled by Greenpeace that the port project posed a threat to the fragile ecosystem of the area, particularly rare Olive Ridley turtles. He said that “Greenpeace knows it too well that it will not be able to locate a single live turtle in the area identified for the port project and besides, we are in possession of all necessary approvals of different statutory and other authorities responsible for the protection of environment.”

As per report the status of progress in various areas of project is as under
1. Scott Wilson Kirkpatrick India Private Limited, the Indian arm of the UK based Scott Wilson Kirkpatrick, has been appointed the project management consultant
2. Dredging will be undertaken by International Seaport Dredging Ltd, a JV between L&T and Belgium’s Dredging International. The cost of dredging, covering both capital and maintenance dredging, is estimated at INR 600 crore. The scope of work will include dredging of an 18 kilometer long channel and removal of about 60 million cubic meters of dredged spoilt over a period of 3 years.”
3. A consortium of 8 banks, headed by IDBI, has concluded the financial closure. The INR 2,400 crore port project will be funded largely by loan, about INR 1,900 crore, and partly by equity, INR 500 crore to be subscribed by the 2 partners in equal proportions.
4. L&T had been entrusted with the INR 1,200 crore contract covering a wide gamut of operations such as civil, mechanical and electrical work as well as construction of the railway network which will connect the port with the Indian Railways’ network at Bhadrak on the Howrah to Bhubaneswar route. The land acquisition for the railway network was almost complete.

NCDEX posts robust delivery of mild steel ingots future contracts

National Commodity and Derivatives Exchange Limited in a recent press release said that they saw a robust delivery of 1,980 tonnes of mild steel ingots at its Ghaziabad center in June backed by active participation by exchange pre approved steel mills. As per release, NCDEX has seen deliveries to the extent of 7,000 tonnes of mild steel ingots till date at its warehouse at Kolkata, Ghaziabad and Raipur.

The release added that in order to ensure that the quality of commodity delivered is in accordance with the contract specifications, NCDEX regularly conducts stringent quality tests on the mills. The mild steel ingots contract has seen deliveries been affected after a gap of almost a year as the exchange has streamlined the assaying process whereby exchange pre approved steel mills are entitled to deliver without testing.

Steel is an excisable commodity, which is subject to central excise and state level VAT. The manufacturers or dealers who are registered under both these taxes only can deal in the delivery of MS ingots at the exchange.

NCDEX is the only online commodity futures exchange in the world on which future contract in steel is fairly liquid. As per specifications of the mild steel ingots contract, the unit of trading as well as the delivery unit is 10 tonnes. The primary delivery center for the contract is Ghaziabad and additional delivery centers for this contract are Mandi Gobinagarh, Raipur, Kolkata and Mumbai.

Japanese steel makers facing cost pressures

Bloomberg reported that Japanese steel company costs might rise more than expected this year as raw material prices gain.

The report cited Mr Shoji Muneoka executive VP of Nippon Steel Corporation as saying that the costs may increase as much as JPY 1 trillion 43 % more than an industry forecast, as prices have increased for iron ore, coking coal, molybdenum, nickel, tin, scrap metal and shipping.

Mr Atsushi Yamaguchi an analyst at UBS said that "Chromium, nickel, manganese, scrap prices and shipping freight charges are higher now than were expected at the beginning of this fiscal year."

Mr Hajime Bada chairman of Japan Iron and Steel Federation had earlier said that steel makers would have to pay JPY 700 billion more in 2007 for raw materials, about the same as the previous year's increase.

Rio Tinto warns of short supply of iron ore

Rio Tinto Ltd has recently reiterated that it can't meet demand for iron ore particularly from China.

Mr Sam Walsh CEO of Rio Tinto's Iron Ore Group told a Committee for Economic Development of Australia organized seminar at Pert told the participants that "The market is extremely tight and we can't meet demand."

He said that Rio Tinto's plans to expand its Western Australian iron ore exports to 220 million tonnes per year remain on time and on budget with the company also considering moving to 320 million tonnes and beyond.

Mr Walsh's comments may fuel speculation of a further iron ore price increases next year after the more than doubling of contract prices in the past three years.

Territory sweetens its counter bid for ConsMin

It is reported that Australian iron ore miner Territory Resources Ltd has sweetened its proposed counter bid for Consolidated Minerals Ltd in a bid to gain access to ConsMin's virtual data room. Territory told the Australian stock market that it had written to the ConsMin board and was prepared to amend its indicative proposal to a choice of AUD 2 cash and one Territory share for every ConsMin share or an all scrip alternative of three Territory shares.

Mr Michael Kiernan chairman of Territory said that the revised cash component demonstrated a serious commitment to present an alternative proposal for ConsMin shareholders. He added that "The Consolidated Minerals board should permit access to reasonable due diligence to give Consolidated Minerals shareholders an opportunity to consider any alternative proposal from Territory."

ConsMin had earlier refused Territory's request to undertake due diligence on the company, arguing its indicative bid of AUD 1.5 in cash plus 1.5 Territory shares for every ConsMin share lacked strategic vision and certainty. ConsMin backed an offer tabled by privately owned Pallinghurst Resources and US coal group AMCI.

Territory has also secured AUD 200 million to help fund AUD 700 million plus counter bid for bigger miner Consolidated Minerals Ltd. Territory said that Singapore commodities trader Noble Group and DCM DECOmetal of Austria had confirmed they will provide the funds if Territory proceeds with its acquisition proposal, tentatively scheduled for July 16th 2007.

NDRC approves Baotou Steel structural adjustment plan

It is reported that China’s National Development & Reform Commission has recently given its official go head signal to Baotou Steel's 10 million tonne structural adjustment project.

NDRC has submitted a plan on how to restructure Baotou Steel, including reconstruction of the headquarters to bring the capacity to 10million tonnes by reforming and elimination and building a 5 million tonne project in the new area producing high end products. NDRC is yet to give permit to the 5 million tonnes steel project.

Baotou will establish some supporting capacities such as mining, beneficiation, sintering, coking, iron making, steel making and steel rolling to form integrated annual capacity of 9.55 million tonnes of pig iron, 10 million tonnes of crude steel and 9.66 million tonnes of steel products. By then, the steel maker will wash out 1.6 million tonnes of 1.6 million tonnes of backward steel-making capacity and 1.2 million tonnes of backward steel rolling capacity.

Meanwhile, the company has been studied overall listing of the steel business for one year. Thanks to consent of the securities regulator, the listed arm of Baotou Steel Group will issue 3.032 billion new shares to buy steel related assets of CNY 6.974 billion from the group company. After the listing, the listed arm will hold 6.42 billion shares, while the group's shareholding ratio in it will increase to 61.2% from 26.51%.

A string of green lights to Baotou Steel facilitates its regrouping with Baosteel, the Shanghai based steel titan. Xinhua has cited senior official of the local government of Inner Mongolia as saying Baotou Steel may ally with Baosteel after overall listing to let the latter take a stake as the first step for its development, and then launch the 5 million tonnes steel project with its allied partner, to bring its total capacity to 15 million tonnes.

(Sourced from MySteel.net)

Ukraine government directs ferroalloy makers to increase prices

Platts reported that Ukrainian government has recently suggested to Ukrainian ferroalloy producers and exporters to increase export prices of ferrosilicon and silicomanganese due to strong prices for the commodities on world markets.

According to a Ukrainian government statement issued, the government has suggested ferroalloy exporters increase export prices for ferrosilicon 75 to USD 850 per tonnes in July 2007 up by 7.6% MoM from USD 790 per tonnes in June 2007 and export prices of ferrosilicon 65 be increased to USD 750 per tonnes, up by 5.6% MoM from USD 710 per tonnes.

The government also recommended that exporters increase export prices of silicomanganese, which has phosphorus content of 0.35%, to USD 940 per tonnes from USD 740 per tonnes, while prices of silicomanganese, which has phosphorus content of 0.5%, be increased to USD 925 per tonnes from USD 725 per tonnes.

At the same time, the government suggested that prices for silicomanganese exports to the European Union be increased. Prices for high carbon silicomanganese, which has carbon content of more than 0.5%, should be increased to EUR 760 per tonnes from EUR 610 per tonnes. It said in a statement that export prices for low carbon silicomanganese, which has carbon content less than 0.5%, be increased to EUR 850 per tonnes from EUR 700 per tonnes, while prices for silicomanganese with carbon content less than 0.05% be increased to EUR 900 per tonnes from EUR 750 per tonnes.

Ukrainian government said that the new prices would be effective through July 31st 2007. Ukrainian companies must export ferrosilicon and silicomanganese at prices not lower than officially suggested by the government in order to prevent anti dumping investigations.

According to the sate Statistics Committee, Ukraine's export of ferroalloys during January to May 2007 reached 531,000 tonnes up by 11.6% YoY to 475,820 tonnes in January to May 2006. Meanwhile, Ukraine's revenue from exports of ferroalloys reaches USD 420.8 million up by 34% YoY.

Ukraine exported 1.2 million tonnes of ferroalloys in 2006 up by 7% YoY.

Interpipe valuation underway for share in JV with TMK

Kommersant, citing a financial report on Interpipe’s pipe and railroad wheel business, reported that Ukraine’s Interpipe may get 25% stake in a JV after the merger with Russia’s TMK. As per report, Interpipe is insisting on a 50% stake but experts believe that the conflict can be resolved if TMK offers the stocks as well as money.

Kommersant said that Interpipe has so far declined to name its value due to the lack of a consolidated report. Kommersant got hold of a copy of a report on the company’s pipe and railroad wheel business, which puts its revenue at USD 1.4 billion and pre tax profit at USD 299 million.

The report cites Mr Kirill Chuiko an analyst at Uralsib as saying that Inerpipe’s value is comparable to that of TMK and Interpipe’s EBITDA profitability at 26% is even higher than that of TMK at 24%. He estimated Interpipe’s worth at between USD 2.5 and USD 3 billion, which means that Interpipe may hope for no more than 25% in the joint company.

However the report cites another source as saying that Interpipe’s shareholders hope for at least 50% as they evaluate their business at USD 5 billion. The source said that “In case Interpipe is evaluated lower in the IPO, they would suggest creating the merged company on the basis of some assets of TMK. Otherwise, we will sell out a controlling stake to TMK.”

Kommersant report however said that TMK does not agree with any of the options and evaluates Interpipe at USD 3 billion. The report cites an investment banker as saying that TMK has come up with a compromise solution, offering Interpipe a minority share in the JV and money and that Interpipe has not as yet rejected the plan.

Composite steel forecast from MEPS

MEPS reported that world all products price in June went down by 1.2% mainly due to Chinese suppliers exporting as much material as possible prior to the imposition of an export levy on June 1st 2007 thus created significant oversupply in North America and adversely affecting EU market. MEPS said that “As a consequence of the new conditions in China which affect global markets, our previous forecast has been downgraded this month.”

MEPS said that the slight upturn is not now expected to occur through the remainder of 2007 although reasonably firm construction demand around the world should reduce the impact of falling scrap prices on global long product values and strong flat products consumption in Asia should keep selling values firm in the region. MEPS said that “Opposing price trends in the US and EU are likely to counter each other. The net result is a forecast for slightly rising global figures in 2007 falling slightly in 2008.”

For EU, MEPS said that “In EU all products prices, this month are down by USD 22 per tonne. Both flat and long products went into decline. Oversupply in the flat products segment from an influx of foreign material over the past few weeks pushed transaction prices lower in the strip mill categories. A recent decrease in scrap costs was responsible for customers in the long products segment demanding lower transaction figures. In the final quarter further cuts in long products selling values are predicted for seasonal reasons as cold weather restricts building and construction projects. Flat products are likely to be steady. The all products figure is therefore, expected to show a USD 30 per tonne reduction in the final trimester and into the early part of 2008 prior to stabilizing for the remainder of the forecast period.”

For North America, MEPS said that “All products price in June fell by one percentage point. This was below our expectations and forecast further reductions through the third trimester. Strip mill product prices will suffer from oversupply in the market and long product figures are cut as the producers reluctantly pass on some of their lower input costs to customers. A steady all products price improvement is then forecast for the final quarter and into the first half of 2008. Domestic demand should have improved in the consumer goods and construction sectors of industry. Over the following three trimester, the flat and long product sectors are unlikely to be subject to substantial import pressure. A weak currency, coupled with relatively low domestic prices will not make this region a particularly attractive market for Asian, East European or South American exporters.”

For Asia, MEPS said that “Asian all product price was stable in June slightly down on our prediction last month. Most of this could be attributed to currency exchange rate movements against the US dollar. Flat product prices fell slightly as several strip sector prices drifted lower. Long product values eased upwards mainly structural shapes. It added that we have downgraded our May all products forecast-principally due to weaker conditions likely to prevail in the flat products segment. Considerable oversupply is now expected in the strip mill sector in China with the introduction of the export levy. New capacity, due to come on stream in the near term was already likely to put negative pressure on prices and believe that the Chinese mills will not be in a position to significantly lift their export values into the Asian region. This will probably lead to only a slight all products price improvement for the rest of the year and a modest decline in 2008 in the flat products segment. Marginally higher prices are probable for long products over the forecast period.”

Western Plain inks iron ore deal with 2 Chinese firms

It is reported that Australian Western Plains Resources has signed an agreement with Chinese investors Focus Investment and Tangshan Xingye Industry and Trade Group to develop its iron ore projects in South Australia. As per report, Chinese investors will take a 12 % stake in Western Plains Resources paying AUD 1.29 a share for 5.8 million shares amounting to a total of AUD 7.5 million.

The deal gives the Chinese investors exclusive rights to at least 70% of its direct shipping ore projects of Peculiar Knob and Hawks Nest in the Gawler Craton region in South Australia. In addition, Focus would also be responsible for procuring debt of at least AUD 50 million to develop the projects.

Mr Bob Duffin chairman of Western Plains said the heads of agreement represented a great leap forward towards the development of our iron ore projects. He said Focus is an entrepreneurial trading and investment group that sees the benefits of our projects to its business strategy of increasing its exposure to the iron ore industry and the deal would also fast track the company's move from being an explorer to producer.”

Evraz extends offer to Highveld shareholders

Evraz announced that the offer dated June 4th 2007 to the shareholders of Highveld Steel and Vanadium Corporation Limited to acquire the entire issued share capital of Highveld, other than those Highveld shares currently held by Evraz, for a consideration of USD 11.4 per Highveld share has been extended.

Evraz said that the offer would remain open for acceptances until such date as may be announced by Evraz in a further notice to be published.

As at July 3rd 2007, shareholders holding a total of 57.647 Highveld shares had accepted the offer.

Algoma’s BF to go down for 30 days for partial rebuild

It is reported that Algoma Steel Inc's BF No 7 of 7000 tonne per day capacity is being prepared for its longest shutdown at Sault Ste. Algoma BF will be out of service for 25 days to 30 days for scheduled maintenance. As per report the partial rebuild, at about one third of the cost of a full rebuild, will include rebuilding heat resistant refractory inside the lower portion of the 315 foot stack as well as work on the tap holes.

Ms Brenda Stenta manager of corporate communications of Algoma Steel said that "It will be the longest shutdown since the furnace was rebuilt back in 1995."

Ms Stenta said "While the Direct Strip Production Complex will be down for the duration of the furnace shutdown operations will continue at the plate and strip mills and the plate and strip mills accessing slabs from inventory."

Algoma’s BF No 7 commissioned in 1975 at a cost of nearly USD 65 million and was totally rebuilt in 1981, 1988 and 1995. The complete rebuilding of No 7 blast furnace at a minimum estimated cost of USD 120 million has been deferred on several occasions since 2002 after extensive inspection and review when it was off line for 16 days. The latest deadline for a complete rebuild is 2010.

Mr Slim overtakes Mr Gates as wealthiest person – Report

The Libre Belgique online newspaper reported that the Sentido Comun Web site has voted Mexican telecom tycoon Mr Carlos Slim, 67, the world's richest person, with an estimated personal worth of USD 67.8 billion, pushing Mr Bill Gates, the founder of Microsoft Corporation who has USD 59.2 billion, behind with an almost USD 9 billion gap between them.

Mr Slim owns Latin America's largest telecom company America Movil, the INBURSA financial group, the Curso industrial group and a chain of shops and restaurants.

Mr Gates has topped Forbes' list of billionaires for 13 years running and Mr Slim ranked third in the list less than six months ago.

US Forbes magazine has not yet confirmed the information.

Chinese steel makers may opt for seawater for steel production

Xinhua reported that newly built coastal steelworks in China might turn to seawater utilization in a bid to tackle freshwater shortages.

The report cited Mr Li of China Metallurgical Industry Planning and Research Institute as saying that "Some new steel mill projects, including Shoudu Iron and Steel Group's Caifeidian project and Baoshan Iron and Steel Group’s Zhanjiang project, are considering incorporating a seawater utilization option into steel mill design. However, the idea may be dropped if it turns out to be too costly.”

Over the past few years, Chinese steel makers have made great efforts to increase water consumption efficiency. At present, Chinese steel makers consume an average of 4 tonnes of water during the production of 1 tonne of steel.

Technology to utilize seawater in steel mills is already commonly used by steel makers in the Middle East, which faces severe freshwater shortages.

Renminbi breaches key 7.60 benchmark level

It is reported that the benchmark price of China's currency, the renminbi, climbed to 7.5951 against the dollar on Tuesday, breaching the key benchmark of 7.60 for the first time in a decade.

According to the People's Bank of China, the renminbi has appreciated 2.74% against the US dollar since the start of the year and over 8% since China's currency reform in mid 2005.

On July 21st 2005, China allowed the renminbi to increase by 2.1% against the dollar to CNY 8.11 and let it float against a basket of currencies including the dollar, euro, Japanese yen and Korean won instead of pegging it solely to the dollar.

Analysts widely expect a 5 percentage point renminbi appreciation against the dollar for this entire year.

Sidor and Venezuela finalizing agreement on domestic prices

It is reported that some items are still to be finished off as part of an agreement with the Venezuelan government to prevent nationalization of iron and steel company Ternium Sidor.

Mr Julián Eguren CEO of Ternium Sidor told journalists that "A lot of progress has been made during the talks. Some items are yet to be completed, and we are working on it." The senior official did not provide additional details or say when the agreement would be initialed.

Last June, Mr José Khan minister of basic industries and mining had reported on a final agreement with the subsidiary of international Ternium Company. Execution of the instrument had been planned for mid July. According to Mr Khan, Sidor had undertaken to provide Venezuelan domestic customers with lower prices as compared to the international market, in addition to a USD 500 million investment to enlarge its output.

Mr Hugo Chávez president of Venezuelan had threatened Sidor partners with nationalization of the company, which, in his opinion, was favoring exports to the detriment of the local market.

Bitempo acquires 49% stake in Klöckner Information Services

It is reported that Bitempo GmbH, Düsseldorf has acquired a 49% interest in Klöckner Information Services GmbH the service provider of the Klöckner & Co Group. The acquisition will take effect retroactively as at January 1st 2007. Klöckner & Co AG will retain 51% of KIS.

Mr Gisbert Rühl member of the Management Board of Klöckner & Co responsible for IT said "Thanks to Bitempo's investment as Klöckner Information Services is boosting its knowledge base."

Klöckner Information Services focuses on business process and IT consulting, specializing in SAP migration support and ongoing development. It operates its own data center in Duisburg. In addition to its Duisburg headquarters, Klöckner Information Services has branches in Leeds at Madrid and Valencia.

ConsMin allow Territory to conduct due diligence

It is reported that Consolidated Minerals Limited has granted access to Territory Resources Limited to its virtual data room to conduct due diligence on the manganese miner, after receiving further information clarifying key aspects of Territory's revised indicative proposal.

As per report, the permission to conduct due diligence is granted on the condition that ConsMin's advisers will also be given access to undertake due diligence on Territory.

Last week, ConsMin refused Territory's request to undertake due diligence, arguing that an indicative bid of AUD 1.5 in cash plus 1.5 Territory shares for every ConsMin share lacked strategic vision and certainty. But Territory turned up the heat on ConsMin by sweetening its proposal and securing up to AUD 450 million in financing from commodity traders Noble Group and DCM DECOmetal International Trading and investment bank Lehman Brothers.

However, ConsMin continues to back an AUD 382 million bid by a Pallinghurst Resources led consortium, headed by Mr Brian Gilbertson former CEO BHP Billiton Ltd.

Maanshan Steel put into coke dry quenching in operation

It is reported that coke dry quenching equipment for Maanshan Steel's 2.2 million tonnes No 2 coke oven has been put into operation on June 30th 2007.

The coke dry quenching equipment is constructed to match China's biggest 7.63 meters high coke ovens, which the steel maker has newly built.

It is scheduled with daily capacity of 130 tonnes, the first of its kind in China.

In the meanwhile two coke dry quenching equipments will share a lifting machine and a hoisting shaft for the first time. The other one is slated for operation soon.

(Sourced from MySteel.net)

Heavy rain disrupts coalmining in Pakistan

Pakistan’s Dawn newspaper reported that Mr Ghulam Sabir Khan president of Pakistan’s Coal Mines Owners Association has asked the Pakistan’s government to make urgent arrangements to rescue 40,000 marooned mine laborers.

Mr Kahn while speaking at a press conference in Quetta said that the mining industry has collapsed in several provinces in central Pakistan due to torrential rains. He said that landslides have destroyed much of the area causing up to 40,000 laborers to be trapped in the flood waters.

Mr Kahn called for the government to expedite relief work and to repair roads and supply food and drinking water to the affected areas.

Cockatoo Coal pushes forward Queensland mining plan

It is reported that Australia’s Cockatoo Coal’s resources in the Surat Basin in southern Queensland will be developed sooner as a result of its acquisition of Metallica Minerals' coal assets. The USD 10 million deals includes Surat, Kingaroy, Condamine and Injune projects and has interests in coal gasification and coal to liquid projects.

The coal projects cover a combined area of approximately 3,000 square kilometers of coal bearing strata, and include the Taabinga coal deposit which has a Measured and Indicated resource of 163.8 million tonnes of thermal coal.

This potential acquisition will strengthen Cockatoo’s existing Surat Basin holdings, adding to it’s already owned Guluguba project, which is currently being core drilled and already has a 56 million tonnes. These additional projects will not affect Cockatoo’s exploration program for its Wonbindi and Dingo projects in the Bowen Basin.

Mr Mark Lochtenberg MD of Cockatoo Coal’s said that "We have got aggressive management, very supportive and strong directors and shareholders and we've got some very big shareholders who are players in the international coal industry. Therefore we are very well funded and we've got the management expertise to go and have these coal deposits developed."

Rio Narcea accept Lundin offer

Canadian nickel miner Rio Narcea Gold Mines Limited announced that its board has recommended that shareholders accept Lundin Mining Corp’s offer to buy the company for CAD 5.5 per share. Rio Narcea said BMO Capital Markets reviewed the Lundin bid and told the board the offer was financially fair to common shareholders.

Lundin wants to buy Rio Narcea, which owns the Agua Blanca nickel mine in Spain to take advantage of surging prices for the metal used to strengthen steel.

Lundin, based in Vancouver has been buying copper nickel and cobalt deposits in anticipation of increasing global demand for base metals. Its first quarter sales more than doubled to USD193.9 million partly because of its acquisition of Vancouver-based EuroZinc Mining Corp last year.

Syrian General Company for Iron & Steel to expand its melt shop

It is reported that the General Company for Iron and Steel Products in Syria has announced its plan to develop and modernize its melting shop in order to boost its production capacity up to 400.000 tonnes per year of steel billets and has invited offers for undertaking on turn key basis with a closing date of August 13th 2007.

Its present melt shop consists of two electric arc furnaces with capacity of 25 tonnes each and two billet casters. The other facilities include a bar mill, pipes mill and a forging mill.

ThyssenKrupp awards soil testing contract to Alabama firm

Birmingham News reported that an Alabama company Thompson Engineering Inc has won the first contract for working on ThyssenKrupp's planned USD 3.7 billion steel plant near Mobile in the state of Alabama in US.

Thompson Engineering Inc will conduct soil tests at the site of the facility and the marine terminal that will be built to load and unload barges at the Tombigbee River. Thompson will drill 148 soil test borings on the facility site and 26 soil test borings in the terminal area to depths ranging from 20 to 150 feet work that will help determine the foundations needed. The testing will begin in July 2007.

Mr Bob Soulliere CEO of ThyssenKrupp Steel USA LLC said that "We are very excited to announce that this first contract was awarded to an Alabama based company. We are committed to using local contractors and suppliers to the extent possible."

ThyssenKrupp on May 11th 2007 announced its decision to build in Alabama. The Alabama site covers more than 3,600 acres in northern Mobile and southern Washington counties. The new 7 million square foot facility, scheduled to begin operations in 2010, will process carbon steel and stainless steel.

Fitch upgrades Corus rating to 'BB'

Fitch Ratings announced that it has upgraded Corus Group PLC's long term issuer default rating to 'BB' from 'BB-' with a stable outlook, following a recent management meeting at which TATA Steel Ltd provided additional details on Corus' future financial performance and post acquisition synergies and operational benefits.

Fitch said it has also factored into the ratings a higher than previously anticipated level of parental support despite the Corus acquisition debt remaining legally non recourse to TATA Steel and said it has greater confidence regarding the future standalone financial performance and credit metrics of Corus.

Fitch has also affirmed Corus' short-term issuer default rating at 'B'.

Baosteel ink 3 year zinc supply contract with Zhongjin

Interfax China reported that Shanghai Baosteel Co Ltd the Shanghai listed arm of Baosteel Group recently inked a three year zinc metal supply contract with Shenzhen Zhongjin Lingnan Nonfemet Co Ltd.