SAIL BSP posts record Q1 performance

It is reported that Steel Authority of India Limited’s Bhilai Steel Plant has posted the best ever first quarter performance during April to June 2007 by producing 0.850 million tonne of finished steel up by 8.6% YoY as compared to April to June 2006.

BSP produced 315,400 tonne of plates up by 8.7% YoY, 141,400 tonne of wire rods up by 22.8%, 173,500 tonne of merchant products up by 19% YoY including 100,200 tonnes of rounds and bars up by 41.3% YoY.

The release added that “'In the area of value added steel for customized applications, the plant recorded the highest ever Q1 production of boiler quality plates, high tensile plates, electrode quality wire rods and TMT rods and bars in the April to June 2007 period.”

BSP had produced 4.82 million tonnes of hot metal, 4.80 million tonnes of crude steel and 4.22 million tonnes of saleable steel in 2006-07 and is undertaking a modernization plan to increase to 7.5 million tonnes of hot metal and 7 million tonnes crude steel per year by the end of the fiscal year 2010-11. INR 112.62 billion plans include installation of a new blast furnace, a 7 meter tall coke oven battery, a new sinter machine and a new steel melting shop.

RINL achieves best ever Q1 sales in April to June 2007

Rashtriya Ispat Nigam Limited has achieved the best ever Q 1 sales turnover of INR 2026 crore during April to June 2007 up by 14% YoY as compared to INR 1774 crores in April to June 2006.

RINL sold 0.634 million tonnes of steel in the domestic market registering a growth of 7% over the same period last year with value added steel sales of 0.294 million tonnes of up by 43% YoY. RINL’s sale to projects was 0.146 million tonnes up by 16% YoY. Under the new initiative of district level dealers, RINL sold 5571 tonnes during the quarter.

The release added that the value added production of 0.3,52 million tonnes during April to June 2007 is the best for any quarter since inception. Similarly, production of 0.218 million tonnes of bars is the best Q 1 production since inception.

Vietnam assures full support to VSC TATA Steel JV

Vietnamese government will extend all supports to TATA Steel to execute its proposed 4.5 million tonne 65:35 JV project in Vietnam and would make conditions favorable.

Mr Nguyen Tan Dung prime minister of Vietnam during his recent visit to Jamshedpur said that he admired the TATA Steel for producing high quality steel and for its social responsibility towards the citizens of Jamshedpur in India.

Mr Dung wished the JV between TATA Steel and Vietnam Steel Corp a great success and assured that "We shall fully support and make favorable conditions for the success of the JV."

Mr B Muthuraman MD of TATA Steel said that "TATA Steel will very soon start the feasibility for the project." He said that TATA Steel would endeavor to complete both the high quality steel and the mining plants as quickly as possible.

TATA Steel and Vietnam Steel Corp have signed a MoU on May 29th 2007 in Hanoi for a 4.5 million tonnes steel plant in Vietnam's Ha Tinh province in phases over a 10 year period. TATA Steel will also have a 30% stake in the Thach Khe Iron Ore Joint Stock Company, which will undertake mining operations in the Thach Khe iron ore mine.

RINL to award casters to Danieli consortium - Report

Mint reported that Rashtriya Ispat Nigam Limited has finalized an equipment procurement and construction contract with a consortium led by Danieli and C Officine Meccaniche SpA of Italy and that a formal deal will be signed next week. As per report, the Italian consortium would supply engineering and plant technology for three continuous casting machines, in a contract valued at about INR 1,000 crore.

The other consortium partners are Danieli Engineering India Limited, a 100% subsidiary of Danieli, which will manufacture equipment parts through vendors and GIS Limited, which will build the plant.

The new continuous casters are part of RINL’s on going INR 8,692 crore expansion plans, under which it plans to almost double its capacity and also increase the share of value added products to more than 40%. Te was laid on May 20th 2006. Additional units such as a blast furnace, coke oven, sinter plant, steel melt shop, seamless tube mill and rolling mill are being set up under the expansion project.

RINL has already awarded several other contracts to many firms including Paul Wurth & Larsen and Toubro consortium for the construction and commissioning of the 3rd blast furnace with 3,800 cubic meters volume with a production of 2.5 million tons per annum costing more than INR 1500 crores within 30 months to hike its hot metal capacity to 6.2 million tonnes. Sinter plant no 3 with an annual capacity of 3.61 million tonnes of sinters per year costing INR 687 crore has been awarded to a consortium of TPE of Russia and McNally Bharat Engineering Co Ltd. Recently Bharat Heavy Electricals Limited has received an order for a turbo blower package worth INR 106 crores to be executed in coordination with Germany's MAN Turbo in 28 months to supply compressed air at a high pressure to enhance combustion in the blast furnace.

Stir against Sterilite’s steel plant in Orissa intensifying

Gauging from the recent media reports, it appears that the opposition to Vedanta Group’s Sterilite Iron and Steel Company Limited’s proposed steel plant in Keonjhar district of Orissa is intensifying.

SNS recently reported that thousands of people, who are likely to be affected by the project have formed a platform called Bisthapan Birodhi Manch and took out a rally before staging a demonstration in front of the district collector’s office. As per report, children burnt school bags given by the Sterilite and handed over a letter addressed to Mr Navin Patnaik chief minister of Orissa to Mr BB Mahapatra district collector, describing the reasons for their resistance.

The leaders of Bisthapan Birodhi Manch have urged that but the government should consider the plight of the people when their only source of income would be snatched away. They said “The government should find out alternative barren and infertile lands for the company, instead of crop lands. The lands have been a source of livelihood for years. It is inhuman to refrain them from using jungles, perennial streams and other water bodies and once the plant comes up, not only the earmarked villages but also the surrounding villages will be affected and agriculture would definitely come to a stand still.”

The people of Janardanpur, Singa, Raisuan, Rajabandha, Gopinathpur, Dhatika, Kadgada, Narsinghapur, Mahadeijoda and Tikarpada are farmers and farm laborers who own lands, which produce various kinds of crops and vegetables. They feel that by allowing the company to establish its plant they will experience air pollution, water pollution, various diseases, bad roads and of course, health hazards.

Ramsarup plans IPO to fund steel plant at Kharagpur in WB

It is reported that Ramsarup Group’s Ramsarup Lohh Udyog Limited is setting up an Integrated Steel Plant at Kharagpur in West Bengal as a backward integration with a total investment estimated at INR 689.57 crores.

The proposed integrated steel plant will consist of followings
1. 350 cubic meter mini blast furnace to produce 306,250 tonnes of hot metal.
2. 500 tonnes per day direct reduced iron plant to produce 150,000 tonnes of sponge iron annually.
3. Steel melting shop of 70 tonne per hour electric arc furnace with ladle refining and billets caster to produce 691,000 tonnes of steel billets annually.
4. 20MW co generating power plant for captive use
5. Air separation unit for captive use.
6. A 90 meter cube sinter plant to produce 976,536 tonnes of sinters per annum

Ramsarup proposes to finance this project through total equity of INR 286.51 crores and long term loans of INR 403.06 crores. Ramsarup Lohh Udyog also proposes to enter the capital markets with a public issue of 3,00,00,000 equity shares of INR 10 each through 100% book building process to meet the part fund requirement and has filed the DRHP with SEBI for the purpose. Microsec Capital Ltd and Religare Securities Ltd are the BRLMs for the issue and Intime Spectrum Registry is the Registrar to the issue.

Ramsarup Group, founded in 1966, is one of the leading producers of steel wires in India and is engaged in manufacturing of various grades of steel wires and TMT Bars. It has recently diversified in transmission line segment also.

L&T chooses Kattupalli in TN for mega shipyard - Report

Exim News Service reported that Larsen & Toubro has selected Kattupalli Port near Chennai in Tamil Nadu, over other contenders such as Mundra in Gujarat and Kakinada in Andhra Pradesh, as the location to set up its INR 2,000 crore shipbuilding yard and that a formal announcement in this regard is likely within a week or two.

As per report, the yard is likely to start building ships by the end of 2008 or early 2009 and the first ship could be completed in 2010. It is expected to have the capacity to build five VLCCs, 20 Suezmax carriers and repair 50 to 60 ships a year. The Kattupalli facility will be the country’s first shipyard equipped to build very large crude carriers with a capacity of 300,000DWT to 350,000DWT.

As per report, L&T has hired a European consultant to develop a master plan for the facility and also plans to rope in a Japanese or Korean shipyard as a technology partner.

L&T currently builds ships with a displacement of up to 20,000DWT at Hazira in Gujarat but is planning to set up a separate company for this purpose and achieve INR 3000 crore to INR 4000 crores in next 5 years.

Day time movement of iron ore trucks banned in Udupi

It is recently reported that the movement of iron ore carrying trucks in the daytime has been banned in Udupi district in Karnataka and now they can only ply between 9PM and 5AM once in two days. The order has been passed under Motor Vehicle Act.

It is noted that the movement of iron ore carrying trucks are spoiling the National Highway and the number of accidents are also on the rise. This has forced the district administration to ban the movement of iron ore carrying trucks in the daytime.

Mr V Ponnuraj deputy commissioner of Udupi said that Udupi is a religious center and tourists throng the district from each and every corner of the country as a result, the traffic is heavy in the region and many mishaps have taken place in the district. He added that by allowing the trucks to ply once in two days in the night, mishaps can be avoided and at the same, the traffic congestion will be eased. He also called upon the police and RTO to implement the order effectively in the district.

After banning the transportation of iron ore to Karwar in June 2007, all the iron ore trucks have been plying to Mangalore through Udupi.

Moody's downgraded TATA Power ratings

TATA Power Company Limited announced that Moody's Investors Service has downgraded its corporate family rating to Ba3 from Ba1 and has downgraded its senior unsecured bond rating to B1 from Ba2.

Ms Jennifer Wong lead analyst of Moody in a statement said that “The downgrade reflects TATA Power’s aggressive capital expenditure plan in coming years to more than triple generation capacity from 2,323MW to over 7,500MW in the next few years that will raise TATA Power's overall business and financial risk profile.” At the same time, the rating continues to reflect TATA Power's status as the leading electricity supplier to the Mumbai license area, supported by sustainable growth in demand and creditworthy clients in Mumbai, all with good payment track records.

Ms Jennifer added that, by end 2008-09, consolidated debt of TATA Power is expected to be over two and half times that at the end of 2006-07 and this is before the bulk of capital expenditure for Mundra ultra mega power project is required. The result is the financial profile of TPC is going to be much weaker in the next three years than it has been historically.

Patel Engineering JV to construct dam in Algeria

It is reported that Patel Engineering, in a JV with Turkey based As ka Insaat Construction, has bagged its first order worth USD 153 million in Algeria from Agence Nationale Des Barrage Et Transferts for designing and construction of the dam under the project Travaux De Construction Du Barrage De Mehouane Sur L’oued El Guessar.

Mr Rupen Patel MD of Patel Engineering said that “This is a part of our business strategy to shift to newer markets. We believe African markets have good potential over the next few years. The company is in process of finalizing bids for other projects in other African sub continent including Mauritius. The company has already bid for projects worth about USD 100 to USD 200 million in Africa and is keen to acquire local construction firms in this region.”

Patel Engineering has been involved in implementing projects relating to steel plants, oil refineries, foundries & machine shops, chemical plants, thermal, atomic and hydro electric projects, tunneling and underground construction, dams, bridges and marine works. Recently, Patel Engineering has floated a separate 100% subsidiary Mauritius based Patel Engineering to tap new markets in Mauritius.

JSW orders for CR mill bearings to Timken

The Timken Company announced that it would supply bearings to JSW Steel Limited for its new cold-rolling steel mill as well as provide its MILLTEC™ rolling mill maintenance services after construction is completed. The two new contracts for bearings and services are valued at approximately USD 1.2 million.

Mr David White director of sales and marketing of Timken said "JSW Steel has become an important Indian manufacturer and a valued customer for Timken as we continue to grow our business along with India's dynamic market. Timken customers around the world have long valued the engineering expertise and technical know how that goes into our products. Now we are using that same expertise to provide complete solutions like our MILLTEC rolling mill maintenance services. Offering such services is one way we add value for our customers here in India and around the world.”

Timken first began working with JSW Steel in 2000 as a bearing supplier for its hot strip mill at the Vijaynagar complex. In 2004, Timken began offering its customized MILLTEC services, which included responsibility for managing the roll shop operation. When MILLTEC services first began at JSW, the hot strip mill was experiencing significant bearing failures and the Timken team quickly worked with JSW on those problems to help improve productivity.

India NRE Minerals IPO in Australia oversubscribed

Gujarat NRE Coke Limited announced that the Initial Public Offer of India NRE Minerals Limited of 30 million shares at AUD 0.5 each aggregating to AUD 15 million has closed on the stipulated date having been over subscribed and that it received subscription for 43,678,500 shares at 50 cents each. The release added that it has decided to retain the over subscription and allotted shares to all the applicants in full.

Gujrata NRE added that it's request to the Australian Securities Exchange for listing of the shares of the company has been accepted and the shares will be listed in the ASX on July 10th 2007.

The issue was lead managed by BBY Ltd, while Ernst and Young Transaction Advisory Services Ltd, Perth acted as Corporate Advisors.

India NRE Minerals Limited owns and operates the NRE No 1 colliery with proven resources of more than 300 million tones, in the southern coalfields of New South Wales in Australia. This colliery has produced significant amount of coking coal for more than one hundred years and have catered to both the domestic and export markets. India NRE Minerals Ltd has negotiated an off take agreement with Gujarat NRE for up to 1 million tonnes of coking coal per annum.

NDRC data shows that Chinese domestic steel prices stops decline

China Securities News agency reported that Chinese domestic steel prices have shown sign of stabilizing during the week ended July 1st 2007, after declining for 5 continuous weeks.

According to data released by China's top planning body National Development & Reform Commission price of four major steel varieties has moved upward from the week before. The statistics from the country's 22 steel trading markets show that the price of four major steel products averages CNY 4091 per tonnes during Jun 25th 2007 to July 1st 2007 up by 0.1% WoW but down by 0.9%YoY.

The prices of wire rod, rebar and medium plate inched upward to CNY 3613 per tonnes, CNY 3646 per tonnes and CNY 4199 per tonnes respectively, up by 0.1%WoW, 0.6%WoW and 0.3% WoW from the previous week. However, the price of CR sheet dipped by 0.5%woW to CNY 4906 per tonnes. Meanwhile, the prices of wire rod and rebar have gained by 3.2% WoW and 10.1%YoY respectively, while the prices of medium plate and CR sheet fall by 2.6% WoW and 8.9% YoY respectively.

In the mean time, global steel price index stays at 172.8 points during June 25th 2007 to July 1st 2007 leveling with the previous week. The index climbs by 4.2% YoY compared with the same time of last year. And iron ore containing an ore content of 66 is sold at CNY 847 per tonnes, basically unchanged from the week before, but up by 38.9% YoY.

NDRC said that steel prices in China have continued to fall for 5 straight weeks with an accumulative drop of 4.55% since the government announced to levy an export tax of 5% to 10% on 83 steel products in late May 2007.

(Sourced from MySteel.net)

US steel import permit applications cross 3 million ton again in June

American Iron and Steel Institute, based on Steel Import Monitoring and Analysis data, has reported that steel import permit applications for the month of June 2007 totaled 3.082 million tons that is the second highest monthly amount so far this year and slightly down from the 3.101 million tons permits recorded in May 2007 and a 4% decrease from the May preliminary imports total of 3.210 million tons but up by 15% than the 2005 monthly average.

Import permit tonnage for finished steel in June 2007 was 2,450,000 tons down by 12% MoM as against 2,773,000 tons in May 2007 and up by 17% than the monthly average of 2,099,000 tons in 2005.

For June 2007, the largest volumes of import permit applications for finished steel outside of North America are

Volume in tons

Mr Andrew G Sharkey III president & CEO of AISI while analyzing the SIMA data for June 2007 said that “America’s efficient and environmentally responsible steel producers note with particular concern the continued high level of imports from China. Whether the product is steel or manufactured products in general, this again points to the paramount need to ensure effective, enforceable, rules based free trade.”

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

Stemcor buys Steel Plate & Sections in UK

It is reported that Birmingham based steel stockholder Steel Plate & Sections has been sold to the world's largest independent steel trader Stemcor in an undisclosed deal. The acquisition also gives Stemcor a stockholding presence in the UK, with warehouse facilities in Birmingham and Glasgow as well as Rotterdam, Dubai and Singapore. It builds on Stemcor's recent acquisitions of stockholding businesses in Europe and the US.

SPS is one of UK's largest suppliers of high yield, boiler and pressure vessel and other quality steels and is also a multi national company supplying steel products throughout the world from its West Midland headquarters and bases in Europe, the Middle East and Far East.

SPS' sales of high yield offshore and structural quality steel plate complement Stemcor's existing business supplying the Oil Country Tubular Goods market with steel casing, tubing and drill pipe. In addition to offshore fabrication, SPS also sells plates, tubes, sections and stainless steel for a range of applications including pressure vessel and boiler manufacture and offer a full material testing and processing service.

Mr Ralph Oppenheimer executive chairman of Stemcor said that "I am honored that SPS' previous owners have chosen Stemcor as the new steward of their company. SPS is a fine company with its own culture and a tradition of first class customer service. Stemcor will ensure that these qualities are maintained." He added that Stemcor's plans were to see the company expand into new markets and increase revenue.

Mr Mark Robbins MD of Steel Plate & Sections said that "We are delighted with the deal and having such a big strategic parent backing us can only be good for the company. We are doing very well and enjoy high profitability so I suppose it is only natural that we would attract interest. We employ just fewer than 100 people at our headquarters but they may increase as we look to expand. Stemcor are happy with what we do and how we are run and they want us to continue so that we can increase profit levels."

Ukrainian Metinvest may bid for Stelco – Report

The Globe and Mail Newspaper reported on Friday that Ukraine based Metinvest is taking a serious look at Canada's Stelco Inc. The report said that officials from Metinvest have toured Stelco facilities in the weeks since the steel company put itself up for sale.

Hamilton based Stelco has a market capitalization of about CAD 753 million. It said in June 2007 that it would review strategic options, citing ongoing consolidation in the steel industry.

Gloucester Coal shareholders vote against Xstrata offer

It is reported that Gloucester Coal Ltd shareholders rejected a bid of around AUD 391 million from Xstrata Ltd despite a unanimous recommendation from the board. The overall result of the vote on the resolution, at a meeting held in Sydney, was 45.43% in favor and 54.57% against.

Gloucester Key shareholders, commodity trader Noble Group and privately held coal producer AMCI were both expected to vote against the proposal. Each own about 10% of Gloucester Coal.

Before the vote, Mr Andy Hogendijk chairman of Gloucester conceded the vote was unlikely to pass. He said that "Over recent weeks, the Noble Group and AMCI have emerged on the register as significant shareholders each with approximately 10% of Gloucester Coal. We have been advised that AMCI will vote against the scheme and expect Noble to vote against the scheme. We expect that the scheme will therefore not be approved."

Xstrata's cash offer of AUD 4.75 per share had been unanimously recommended by Gloucester Coal directors, but followed an initial offer from Noble, which has since expanded its shareholding in the coal producer.

Earlier this year, Gloucester had the unsolicited approach from Noble for a scheme of arrangement, under which it would acquire the entire share capital of the company. The board then sought expressions of interest from other parties and was presented with a firm, higher offer from Xstrata.

Alchevsk crude steel production in H1 down by 0.5% YoY

Interfax reported that Industrial Union of Donbass’ group member Alchevsk Iron & Steel Works has increased finished roll output by 2.4% YoY in January to June 2007 period to 1.685 million tonnes, including 285,000 tonnes in June 2007.

Alchevsk has reduced crude steel production by 0.5% YoY in the January to June 2007 period to 1.897 million tonnes while pig iron production has fell by 0.8% YoY to 1.518 million tonnes and sinter output fell by 5.1% YoY to 2.463 million tonnes.

Finished roll production at Alchevsk has grown up by 13.2% to 3.261 million tonnes in 2006.

Worthington Industries plans USD 40 million cost cuts

The Columbus based Worthington Industries Inc, which recently experienced a 36% decline in its fourth quarter profit, recently said that it has targeted USD 35 million to USD 40 million in cost cuttings for the 2008 fiscal year which will come from facility closures, productivity improvements and staffing cuts. The announcement comes after company management reviewed each business and established profitability goals.

Worthington Industries Inc, the operator of a pressure cylinder plant in Chilton announced that it would close plants and cut jobs over the next year in an effort to improve profitability. Worthington Industries makes pressure cylinders at a plant in Chilton that it acquired when it bought the pressure cylinders business of Western Industries Inc of Wauwatosa on 2004. That deal also included a plant in Menomonee Falls, which Worthington closed the following year.

Worthington had reported a 71% drop in profit for the third quarter ended 28 February 2007 to USD 5.5 million or 6 cents a share primarily a result of an operating loss in its metal framing division. Sales for the period were down less than a percent to USD 677.3 million. It said sales slipped 4.3% to USD 786.6 million from USD 822 million a year ago largely due to soft sales to the construction and automotive industries.

Worthington Industries produces steel, metal framing and pressure cylinders. It has 8,000 employees at 62 facilities in 10 countries.

Massey Energy to appeal verdict in Wheeling-Pitt dispute

Massey Energy Company announced that it would appeal the jury verdict of a lawsuit arising from a contract dispute between a Massey subsidiary, Central West Virginia Energy Company and Wheeling Pittsburgh Steel Corporation.

Massey will file an appeal to the Supreme Court of Appeals of West Virginia, which the company believes may result in a significant reduction in damages.

Mr Don Blankenship chairman & CEO of Massey said that “We firmly believe we operated within the terms of our coal supply contract. We recognized that a trial in Wheeling Pitt's backyard would be challenging, but we were still surprised at the outcome.”

On July 2nd 2007 a jury in the Circuit Court of Brooke County, West Virginia returned a verdict awarding damages to Wheeling Pittsburgh of USD 220 million, consisting of USD 120 million in compensatory and USD 100 million in punitive damages.

MEPS forecast for SS and nickel

MEPS reported that SS hot rolled Plate type 316 transaction values moved up during June in both the EU and North America but fell in Asia for the first time since December 2005. MEPS said that “This difference in price developments is the result of the alloy surcharge mechanism in the West and also a large reduction in local selling values in China. The nickel price decline is making this situation worse.”

MEPS said that most deals are now being conducted as transaction values. It said “The alloy surcharge is still a fact of life, but basis figures are being adjusted to compensate. This is expected to continue in July as the surcharge rises further. From August onwards, the recent nickel declines will have a negative impact on the alloy extra and as such, stainless selling values in both the EU and North America. Transaction figures are forecast to fall in all areas through to the beginning of 2008.”

MEPS added that nickel prices plunged in June as the LME introduced new lending guidelines and stocks continued to rise. It said “Values had been hovering around the USD 50,000 per tonne mark before the LME made their announcement. This sent figures plummeting by over 25% in just 2 weeks. Prices are set to continue moving downwards as the summer slowdown begins. Stainless steel production levels are expected to drop over the next few months resulting in lower demand for nickel. This should cause LME values to reduce to around USD 30,000 per tonne by the end of 2007. They are then forecast to stabilize during the first quarter of 2008 as demand begins to return.”

Mr Wen Yuan Lin takes over as new chairman of CSC board

Taiwanese China Steel Corporation announced that its 2nd meeting of the 13th board of directors was held on June 29th 2007 and Mr Wen Yuan Lin was elected as the new chairman of the board at the meeting.

CSC's big shareholder Taiwan’s ministry of economic affairs designated Mr. Wen Yuan Lin to replace Mr Yao Chung Chiang as the its juristic person representative, thereby relieving Mr Chiang of his position as a director and as chairman of the board. The eleven members of the board of directors elected Mr Wen Yuan Lin as the new chairman of the Board and CEO.

Following the election, the board conventionally engaged Mr Yao Chung Chiang as Honorary Advisor and Mr Yuan Cheng Chen as President.

CSC during its 2007 shareholders meeting on June 21st 2007 had elected 11 directors including 3 independent directors and 3 supervisors of the new board were also elected at the meeting.

CSC new directors are
1. Mr Yao Chung Chiang representing Ministry of Economic Affairs, ROC.
2. Mr Fadah Hsieh representing Ministry of Economic Affairs ROC.
3. Mr Jung Chiou Hwang Representing Ministry of Economic Affairs ROC.
4. Mr Yuan Cheng Chen representing Chiun Yu Investment Corporation
5. Mr Lo Min Chung representing Ever Wealthy International Corporation
6. Mr Cheng I Weng representing Gau Ruei Investment Corporation
7. Mr Shun Tsai Wu representing China Steel Labor Union
8. Mr Ho Chong Chen representing Shin Mau Investment Corporation

CSC new independent directors are
1. Mr Steven Hung
2. Mr Kenneth HC Chiu
3. Mr Wei Sheng Hwang

CSC new supervisors are:
1. Iuan Yuan Lu representing Hung-Chuan Investment Corporation
2. Tien Lin Lu representing Bureau of Labor Insurance
3. Eli Ching I Wang representing Chi Yi Investment Corporation

Cosipa acknowledged as a Sustainable Company

It is reported that Brazilian Companhia Siderúrgica Paulista is acknowledged as a Sustainable Company award. The awarding ceremony took place on June 26th 2007 at Sao Paulo in Brazil.

Mr Ricardo Salgado e Silva environment superintendent of Cosipa said that “Cosipa is the world’s third integrated steel mill to be granted this certification, which was renewed in 2002 and 2005. For 2008, the company is getting ready for the fourth cycle of the Management System.”

The award is conferred by the Meio Ambiente Industrial magazine to 50 Brazilian companies that in their respective activities, ensure environmental quality and have ISO 14001 certification.

Cosipa is a member of the Usiminas System of companies and has its investments in environmental projects alone outstripped USD 330 million and the outcome includes the ISO 14001 certification among a number of accomplishments.

Jupiter Mines granted Mount Goldsworthy iron license

Australian Jupiter Mines Ltd recently announced that E45/2908, containing 70 blocks was granted by the minister of resources under Section 111 to authorize the company to explore for iron on June 15th 2007.

The Shay Gap Iron Project is located immediately south of the Shay Gap at Niminharra in Sunrise Hill and Cunderline Ridge iron ore mines.

The iron ore target at the Shay Gap project is the drainage and palaeochannels that run south from the main iron ridge that are considered to be highly prospective for CIDs.

Teck Cominco appoints Mr Watson as senior VP project development

Teck Cominco Limited has recently announced that Mr Tim Watson will join Teck Cominco as senior VP project development with effect from August 6th 2007.

Mr Tim graduated from the University of British Columbia with a degree in chemical engineering. He spent the last 8 years with AMEC PLC in positions of increasing responsibility, culminating in his current role as COO power and process.

Mr Peter Kukielski executive VP & COO of Teck Cominco said that "Teck Cominco has entered a phase of substantial growth. In order to meet the challenges of our expanding growth profile, we are delighted to announce the appointment of Tim Watson to the newly created position. Mr Tim will be responsible for the company's engineering, construction, and project management functions, and he will oversee all major Greenfield and brownfield capital projects. Mr Tim will be a tremendous addition to our management team, and we look forward to welcoming him to Teck Cominco."

Vancouver based Teck Cominco is a diversified mining company. It is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold, indium and other specialty metals.

Kremikovtzi to spend on eco upgrades

Dnevnik reported that Bulgarian steel maker Kremikovtzi announced that it is embarking on a BGL 311.91 million production upgrade that will ensure compliance with EU environment protection standards.

The release said the investment program to run through 2011 should earn the steel maker integrated pollution prevention and control permit from the Bulgarian environment ministry. The permit application was submitted to the ministry on May 4th 2007 and the company has so far received no follow up questions.

Mill Con Steel to list on Thai exchange in Q3

It is reported that Mill Con Steel Industrial, a Thai construction steel maker under the management of Mr Leeswadtrakul family, plans to list on the Stock Exchange of Thailand in the third quarter. The company currently has paid up capital of THB 300 million and plans to increase that to THB 400 million by issuing 100 million new shares at a par value of THB 10 each. The shares will be allocated to the public during the third quarter of this year.

MCSI obtained a THB 500 million credit line from Krung Thai Bank for starting up a business. Now the company has KTB debt remaining at THB 200 million and total debt of THB 1.2 billion comprising short term debt of THB 1 billion and long-term debt of THB 200 billion. Total assets are THB 1.8 billion with share equity at THB 350 million and retained earnings of THB 60 million.

Mr Sittichai Leeswadtrakul a grandson of Mr Somsak said that “Given the experiences of the economic crisis we are now very concerned about our debt structure we will control the debt to equity ratio at lower than one time from three times now. The most challenging thing for me now is how to reduce the cost of funds and manage the company to grow steadily. To list on the SET is the answer for now and the second step is finding an appropriate partner. We plan to see MCSI as a public company run by professionals.”

He said the company could operate at full capacity in the next four years and revenue at that time should be THB 8 billion per year. He added that the company hoped to have net profit of THB 120 million for this year and revenue of THB 2.7 billion. In the first quarter its net profit was THB 30 million.

MCSI was previously known as SSP Company Limited and belongs to Mr Sompop Leeswadtrakul the younger brother of Mr Somsak Leeswadtrakul CEO and president of the listed hot rolled steel coil maker G Steel Plc. It has a production capacity of 500,000 tonnes per year of rods and rebars.

Palladon Announces Iron Supply Contract With Holcim

Palladon Ventures Ltd recently announced that a 5 year renewable contract has been executed with Holcim Inc for the sale of iron ore materials. Iron ore material will be sold FOB the Comstock Mountain Lion Mine at Iron Mountain at Utah and shipped by truck by Holcim to their 800,000 tonne capacity Devils Slide facility at Morgan in Utah.

Mr Don Foot president and CEO of Palladon Ventures Ltd said that "The regional cement industry represents an important ancillary business channel for Palladon and will help offset future administrative costs while negotiations continue between Shagang Steel and Luxor Capital for a strategic interest in the iron concentrates business."

Holcim Ltd is one of the leading global manufacturers and suppliers of cement, aggregates, and mineral components and operates in over 70 countries around the world, employing over 90,000 people. In the United States, Holcim Inc is one of the largest suppliers of Portland and blended cements, operating 14 manufacturing plants and over 70 distribution facilities, supplying more than 14 million tonnes of cement and related materials annually.

Palladon Ventures Ltd is a junior resource company focused on building production facilities at the Comstock Mountain Lion iron mine in Iron County at Utah. Palladon also holds gold exploration projects in Nevada, Utah and Argentina.

Quinsam Coal plans for expansion

Canada based Quinsam Coal announced that it is considering opening a new coal pit to meet high demand for its product particularly from China. Quinsam Coal in a release said that over the past month, Quinsam’s management has re assessed surface mining potential and has determined that the 7 South block has excellent potential for an open pit.

Based on Quinsam’s resource and reserve reports that current estimates indicate that 2.5 to 3.5 million tonnes could be recovered at favorable costs since area mining techniques could be used. With that kind of tonnage, management foresees being able to have a 5 year plan to produce 500,000 to 700,000 tonnes per year. Production could commence within 1 year. The wash plant has a capacity of 1.2 million tonnes per year and therefore can support the additional production.

Any expansion at Quinsam would require more design and feasibility work, regulatory approvals, equipment procurement and then actual mine development for production. The resources for this block are well drilled and are classified as measured. This requires a Mine Permit amendment for the pit to this end the corporation has commenced the process and will be having the requisite public and First Nations meetings in Campbell River.

ScanMining seeks bankruptcy protection

Metals Insider reported that Sweden’s ScanMining will seek bankruptcy protection due to production delays and higher than expected expenses at its new Blaiken zinc mine.

Scanmining in a statement said that the Blaiken zinc mine was expected to begin producing in the period between June to August, but technical faults at the processing plant and lower ore grades have led to a fall in income.

Scanmining added that “During the restructuring, the company intends to look at the possibilities for optimizing production capacity and available options for financing.”

Beside Blaiken zinc mine ScanMining operates the Pahtavaara gold mine in northern Finland and the Svãrtträsk zinc mine in Sweden.

Cleveland-Cliffs' acquisition of PinnOak Resources approved

According to a notice from the US’s Federal Trade Commission, federal antitrust regulators have approved Cleveland-Cliffs Inc's purchase of privately held PinnOak Resources LLC without imposing any conditions on the deal.

Mr Joseph A Carrabba CEO of Cleveland-Cliffs Inc's said that Cleveland-Cliffs makes and sells iron ore pellets for use in steel production and the deal that is part of the company's strategy to diversify mineral sales.

Cleveland-Cliffs said it would buy Canonsburg Pa-based PinnOak for USD 450 million in cash and USD 150 in debt. It said PinnOak produces coal at three underground mines the Pinnacle and Green Ridge mines in southern West Virginia, and the Oak Grove mine near Birmingham, Ala. The three mines can produce more than 7 million tons of coal annually.

Mitsubishi Corporation to invest more in raw materials

JMB reported that Mitsubishi Corporation's ferrous raw materials division is expanding investment in the next generation resources and is tripling the iron ore interest by 2015.

As per report, the unit is also considering increasing coking coal interests by 40% and is studying expansion of ferrochrome business.

As per report the it is trying to improve the profitability by making use of the resource and procurement capacity to improve the sales and service for Japanese steel makers and to expand business for Asian steel makers.

US Steel appoints Mr McNally as financial controller for tubulars

United States Steel Corporation announced that Mr William P McNally has been appointed as financial controller for US Steel's tubular products and services business. In his new position Mr McNally has financial responsibility for the merged tubular operations of US Steel and Lone Star Technologies. The appointment was effective July 1st 2007.

Mr McNally has gained extensive business experience through a variety of management positions in both operations and at headquarters. He joined US Steel in 1971 as an accounting management trainee at the company's Homestead Works and moved through a variety of increasingly responsible management positions at Homestead and Mon Valley Works including an assignment as supervisor analyst at the historic Carrie Blast Furnaces in 1977. In 1987 Mr McNally was appointed manager accounting at Clairton Works. He was assigned to headquarters in 1990 as manager general accounting, moved into business process reengineering in 1993 and was advanced to director accounting Raw Materials and Diversified Businesses in 1999. He was named controller USS Real Estate and UEC in 2002, and in 2003 was appointed controller Fairfield Works and Lorain Tubular Operations which includes US Steel's seamless tubular operations in Alabama and Ohio respectively.

Mr McNally graduated from Boston University in 1970 with a bachelor's degree in finance and in 1980 earned a master's degree in business administration from Case Western Reserve University in Cleveland at Ohio.

Arcelor Mittal Kryviy Rih H1 steel production up by 14.9% YoY

Ukrainian Journal reported that ArcelorMittal Kryviy Rih has increased production of finished roll to 3.594 million tons in H1 of 2077 up by 7.3% YoY.

Ukraine's Industrial Policy Ministry told Interfax that the company increased steel production by 14.9% YoY to 4.176 million tons, pig iron down by 11.3% YoY to 3.705 million tons, and agglomerate down by 7.1% to 6.078 million tons.

The ministry added that in June 2007, Kryviy Rih produced about 591,000 tons of roll, 694,000 tons of steel, 608,000 tons of pig iron and 958,000 tons of agglomerate.

Accident kills 1 at Mittal Steel Temirtau

Kazakhstan Today reported that a worker died at Mittal Steel Temirtau enterprise in the Karaganda oblast in Kazakhstan.

According to the report the worker when carrying out repair works on the electro filter of thermal power station 2 boiler metal plate fell down on the assembler resulting him fetal injury.

Mexico miners begin 24 hour walkout over safety

It is reported that Mexican miners began a 24 hour nationwide walkout Thursday to press demands for labor authorities to address safety concerns.

Mr Carlos Pavon, secretary of political affairs at the National Mining and Metal Workers Union, said that the walkout began at 7 am local time, although the union didn't know yet how many workers had honored the strike call.

The walkout affects, among others, Grupo Mexico, a major copper producer, and Industrias Penoles, the world's top silver producer. The 250,000 member union also includes workers of steel plants owned by Arcelor Mittal in the Pacific port of Lazaro Cardenas.

Mittal Steel USA gets 15 more days to sell Maryland mill

It is reported that the US Justice Department recently gave Mittal Steel another 15 days after previously extended deadline, to sell the Sparrows Point mill it acquired as part of its pending merger with Arcelor SA of Luxembourg.

The Justice Department ordered Mittal the sale to preserve US competition in production of tin plated steel, which is used to make, cans for food, aerosol sprays and paint.

Mittal said in April that it had narrowed the list of international bidders from a dozen to a smaller undisclosed number of suitors but it did not identify the companies interested. However Esmark Inc a privately held steel distributor based in Chicago Heights at Illinois is among the surviving bidders.

Russia to withdraw AD duty on SS from EU

Interfax reported that Russian government has decided to cancel a 9 months anti dumping duty on stainless steel flat products imported from EU effective a month after its official publication.

Russian government had passed a resolution on a 3 year anti dumping duty of EUR 840 per tonne on flat stainless steel with nickel content of 2.5% or higher imported from the EU the duty on February 17th 2007 that entered into effect a month after its official publication in Rossiiskaya Gazeta on February 20th 2007 applicable during March 20th 2007 and March 19th 2010.

The Russian economic development and trade ministry started the anti dumping probe on October 27th 2004 based on a complaint filed by the Mechel steel group's Chelyabinsk Iron & Steel Works on behalf of Russian stainless steel producers, which claimed, that imported stainless steel was being sold in Russia for half its price on the EU market. The ministry in November 2005 recommended a duty of EUR 800 per tonne on stainless steel originating in the EU.