July, 08 2007
CPI M disapproves new mining policy
India’s Communist Party of India Marxist has expressed opposition against the new mining policy by saying that unrestricted export of iron ore and other minerals will cause grave national damage.
A CPI (M) statement said “Unrestricted export of iron ore will be allowed in the new policy. This would be a short sighted and harmful policy. Indiscriminate exports of iron ore and other mineral resources will denude India of its natural resources.”
CPI M has asked the government not to approve the mining policy prepared by a Group of Ministers or GoM but to place it before parliament for further discussions.
Torpa Kamdara may be ArcelorMittal’s project site in Jharkhand
FE recently reported that ArcelorMittal Steel might choose Torpa Kamdara near Ranchi as the site for its 12 million tonne per annum Greenfield project in Jharkhand.
The report cites an ArcelorMittal official as saying that out of the two shortlisted sites, Torpa Kamdara appeared to be the more favorable site for the project. He said “Torpa Kamdara is a much better site than any other as it is about 120 kilometer to 124 kilometer from either coal or iron ore source and the place also had the advantage of being located close to railway tracks.”
Out of the 18,000 acres, ArcelorMittal has identified in the area, it would actually require around 12,000 acres to 13,000 acres. As per report, individuals own most of the land and the population in the area is very thin and there is neither much agricultural activity taking place nor it contains any portion of it forestland.
The report added that, ArcelorMittal which had initially thought of getting the two final sites rechecked by Mecon, dropped the idea and appointed a consultant on water resources asking him to submit a detailed report on the availability of water at both the sites for the 12 million tonnes per annum steel project as well as for the small township that would come up around it.
Hatch Associates, whom ArcelorMittal had appointed to do a detailed study of all the short listed sites, has already sent its reports to ArcelorMittal.
CIL awaits for navratna tag for IPO float
BL reported that Coal India Limited, which is expected to hit the market with its initial public offer soon, would now wait till it is granted the navratna status by the department of public enterprises, with which coal ministry has filed a formal request on the matter.
Entering the market with the navratna status would not only help the government realize better price for CIL shares but would also empower the company with much greater operational flexibility such as the power to approve projects up to INR 2,000 crore on its own. The navratna status may also lead to modifications to CIL’s earlier plan in which it targeted to raise anywhere between INR 4,000 and INR 4,500 crore from the market.
CIL needs to raise funds to meet the 11th Plan target set by the government. The incremental target for the 11th Plan has been set at around 160 million tonnes as against 80 million tonnes for the 10th Plan.
CIL currently has an equity base of INR 6,316 crore, which is entirely held by the central government.
L&T to invest INR 300 crore for manufacturing super critical boilers
Larsen and Toubro Limited have announced that it will invest INR 300 crore for manufacturing of super critical boilers needed for 800MW power generators. The site for the project would be either in Gujarat or Tamil Nadu and the formal announcement would be made either by July end 2007 or early August 2007.
This announcement follows the technology transfer and license agreement signed recently by L&T and Mitsubishi Heavy Industries Ltd.
Mr AM Naik CMD of L&T said that "On July 3rd 2007, the board approved investment of INR 300 crore for setting up a unit to produce super critical boilers in collaboration with Mitsubishi Heavy Industries Ltd. This agreement has given birth to a new company called L&T Power Project Limited. Through this, we are starting a new plant for boiler and turbine.”
India manufactures boilers for thermal power plants generating up to 500MW. For erection of power generators beyond 500MW, super critical boilers are required. Super critical boilers, an integral component of energy efficient, coal based power plants, will help meet the demand supply gap for power plant equipment as India ramps up its power generation capability using super-critical technology. Currently only BHEL has the technology to manufacture super critical boilers for 600MW and 800MW power generators.
BEML to spend 3% of total earnings on R&D
PTI reported that mini ratna Bharat Earth Movers Limited has decided to treble its annual spending on research and development by raising it to 3% of total earnings from the present level of less than 1%.
Mr VRS Natarajan MD of BEML said that “The move is to boost productivity and bring out better and sophisticated products across the basket.”
Mr Natarajan added that BEML has generated revenue of INR 2,600 crore in 2006-07 and will invest INR 78 crore towards research and development in 2007-08 to meet its revenue target of INR 5,000 crore by 2013-14.
BEML manufactures hundreds of products in its three factories in Karnataka for sectors like defense, mining and construction, rail and metro. All three manufacturing bases of the company are equipped with separate research and development units and the best one is located at its Kolar Gold Fields factory. BEML has currently employs around 150 research and development professionals in all. Last year, it inducted 75 professionals and hopes to continue in the current fiscal.
Vizag port union calls for a quick decision on VPT merger with VDLB
The worker union of Vishakhapatnam Harbor and Port has urged to the union shipping ministry for taking a decision immediately on the proposed merger of the Vishakhapatnam Dock Labor Board with the Vishakhapatnam Port Trust.
Mr VV Rama Rao president of the Vishakhapatnam Harbor and Port Workers Union in a letter to the secretary of the union shipping ministry said that a draft proposal had been sent to the union shipping ministry by the Dock Labor Board in March 2007, after holding consultations with all the unions and seeking their approval but still no communication had been received from the ministry.
Mr Rao added that the issue of providing employment to the 347 selected master lists containing the names of the eligible kith and kin of deceased employees’ candidates had also been mentioned in the letter.
Mr Rao said that the delay in approving the merger was causing apprehensions in the minds of the selected candidates and any further delay may even result in the candidates resorting to an agitation. He further added that to maintain peace at the port, the selected candidates should be provided employment on casual basis at least.
Vikash Metal to start TMT mill in July 2007
FE reported that Vikash Metal & Power Limited is expecting to get its TMT bar line ready by the end of July 2007 and its ferro alloys and captive power plant by September 2007, completing its transformation into a fully integrated steel plant.
The new integrated plant located in the Purulia district of West Bengal gets its water from the Damodar River and power from the Damodar Valley Corporation. The plant will have a capacity of 150,000 tonne per annum of TMT bars.
Mr Akash Patni director of Vikash Metal & Power Limited told FE that the integration of the plant makes him confident of pushing its TMT bars successfully in a market crowded with brands as only a few TMT bar manufacturers are integrated plants and the rest are simply rolling mills. He added that "I will be making my own sponge iron, from which I will make my own billet and the bars. Only the ore will come from outside."
Vikas Metal & Power Limited is also setting up a 2000MW coal based power plant at Begusrai in Bihar at an investment of INR 2500 crores. The first phase will have 500MW capacity. It has signed a power purchase agreement with the Bihar State Electricity Board last month and is awaiting allotment of coal blocks.
CCEA approves budgetary support for 13 public sector units
Cabinet Committee on Economic Affairs has approved a budgetary support of INR 77.25 crore to 13 central public sector enterprises towards liquidating their outstanding statutory dues, salary and wages for the period up to March 31st 2007.
The public sector enterprises include
1. Andrew Yule and Co Limited
2. Bharat Ophthalmic Limited
3. Bharat Wagon Engineering Company Limited
4. Hindustan Cables Limited
5. HMT Limited
6. HMT (Watches) Limited
7. HMT (CW) Limited.
8. Hindustan Photo Films Limited
9. Instrumentation Limited
10. National Instruments Limited
11. NEPA Limited
12. Triveni Structurals Limited
13. Tungbhadra Steel Products Limited
CCEA said that the INR 77.25 crore will help to ease up the hardships faced by the employees and motivate them for better output and would also prepare them to achieve the goal of revival and restructuring of these companies.
Jaypee PowerGrid to invite bids for Karcham Wangtoo project
It is reported that Jaiprakash Hydro Power & Power Grid Corporation India Limited’s JV Jaypee PowerGrid is expected to invite bids shortly for tower, conductor, insulator and substation extension packages of Karcham Wangtoo power transmission system.
Jaypee Power plans to develop the transmission system between Wangtoo in Kinnaur district of Himachal Pradesh and Abdullapur in Yamunanagar district of Haryana that will be utilized to evacuate power from the upcoming 1,000MW power from Karcham Wangtoo hydroelectric project in Himachal Pradesh.
Jaypee Power has already applied to CERC for grant of license to build, own, operate and maintain the transmission system as a licensee. The project will entail an investment of INR 980 crore with completion scheduled by December 2010.
As per the agreement signed with PGCIL, Jaypee Power will construct 230 kilometer long 400kV DC transmission line from Wangtoo to Abdullapur, LILO of Bapsa Nathpa Jhakri DC line at Wangtoo and the required substation extension at the existing 400kV/220kV Abdullapur substation of PowerGrid.
23 Hydel projects in Himachal attract 90 investors
It is reported that among 90 companies have shown interested in the 23 hydel power projects in Himachal Pradesh’s 3 districts of Lahaul and Spiti, Kinnaur and Chamba. The projects will be awarded by the build own operate transfer system.
120 applications were sold and the Himachal Pradesh State Electricity Board has received 90 applications, 53 applications are for projects with less than 100MW capacity, while the remaining 37 are for projects with more than 100MW.
The 23 hydel projects have a joint power generation capacity of 3,307MW and involve an investment of around INR 13,228 crore.
Foundation stone laid for Kothagudem thermal power station
It is reported that Mr Mohammad Ali Shabbir union minister for energy & coal has laid the foundation stone for Andhra Pradesh Power Generation Corporation's 2x500MW Kothagudem thermal power station Stage VI in Khamman district on July 5th 2007.
Stage VI was sanctioned in the Kothagudem thermal power station as soon as the coal linkage was given for the new unit by the union ministry of coal. Its requirement of 2.30 million units of coal will be met fully from the Mahanadi Coalfield Limited.
Bihar to set up a waste based power project
It is reported that Bihar government has accepted central government’s proposal to set up a scheme to produce energy using waste disposal in the state. The new plant will be taken as part of the Jawaharlal Nehru modernization scheme under the state and central government sharing 50:50 costs.
The concerned officials to prepare a detailed project report with timeframe and cost estimation up to INR 50 crore for the project.
Bihar generates 500 tonnes of garbage per day and the project can generate up to 9.5MW electricity with 33 tonnes of plastic garbage.
Russian steel export to EU reaches 1.4 million tonnes in H1
It is reported that the annual steel export quota for 2007 have been agreed by Russia and EU at 2.27 million tonnes, the same as year 2006.
According to the report from EU committee, the steel exports from Russia to EU during January to June 2007 have reached some 1.4 million tonnes, which accounts for 61.8% of the annual amount.
The reported added that Russia’s exports to China were 10% to 15% in total and the average monthly export amount during January to April 2007 was 450,000 tonnes.
Yilgarn WA infrastructure plan gets Gindalbie backing
It is reported that Australian Yilgarn Infrastructure Limited's plan to build port and rail facilities in Western Australia’s mid west have received a boost through the backing of iron ore hopeful Gindalbie threw its weight behind the Yilgarn option, signing an agreement to explore opportunities for the longer term needs of its emerging operations in the mid west.
Gindalbie Metals Limited. Yilgarn's proposal involves the construction of a rail network and new port at Oakajee, north of Geraldton. The proposal by Yilgarn has also been backed by iron ore miner Midwest Corp, which operates Koolanooka/Blue Hills project, 200 kilometers east of Geraldton.
Mr Garret Dixon MD of Gindalbie said that it is important for the company to accelerate strategic planning for its future infrastructure requirements. He added that "Given the scale of the Karara magnetite deposit our intention is to move as rapidly as possible to expand the project above its initial planned production level. To support this expansion, we will need to be able access new and upgraded port and rail infrastructure in the mid west region and it is important to start planning for this now, particularly in light of the increasing demand with new production coming on stream from other iron ore companies"
Mr John Saunders chairman of Yilgarn said that the agreement with Gindalbie was an important step forward for studies of the port and rail project. He added that "I welcome Gindalbie's commitment to work with Yilgarn to progress this important project and look forward to further commercial negotiations with each of the mid west region's other mines and their partner's."
Yilgarn has been going head to head with iron ore miner Murchison Metals Ltd, which is backed by Japanese giant Mitsubishi Corp and has a competing infrastructure proposal for the region. The two groups are looking to establish a rail and port network to service the emerging mining industry in the mid west, which is constrained by the lack of infrastructure.
MMK increases consumption of pellets in 2007
Rusmet reported that about 6 million tonnes of iron ore raw materials were delivered to Russian steel major Magnitogorsk during January to May 2007 up by 5% YoY.
The report added that although the volume increase was not much, but a noticeable change is noticed in the mix of raw materials delivered to MMK during this period.
Almost half of shipment volumes are form iron ore pellets up by 23%YoY and the purchase of haematite has gone down accordingly.
The main supplier of iron ore raw materials to MMK remains Kazakhstan. According to the results of January to May 2007 the share of import in total deliveries of iron ore raw materials exceeded 80% including almost 90% of pellets, delivered from abroad.
Exxaro Glisa coal project to start production in 2009
It is reported that South African coal miner Exxaro will bring a new coal project on stream during the second half of 2009 to add 4 million tonnes per annum to it production profile of which 3 million tonnes will be exported. The cost of the project would be roughly ZAR 300 million, which could be internally funded.
The report cited Mr Ernst Venter executive GM of Exxaro coal as saying that the feasibility study is underway at the old Glisa mine near Belfast in South Africa’s Mpumalanga province and will be completed around January 2008 in time to go before the board in April 2008 for approval.
He added that mine at Glisa is expected to be commissioned in mid 2009 hitting full production three months later and 3 million tonnes will be exported and the balance will go to state power utility Eskom.
Exxaro, which combines the coal assets of the unbundled Kumba Resources and Eyesizwe coal has production capacity of 45 million tonnes per year. It has eight coalmines. The largest mine is the Grootegeluk mine, where production is scheduled to grow by 17 million tonne per annum to 35 million tonne per annum to supply the yet to be built ZAR 80 billion 4,500 MW Medupi power station from about 2015. Exxaro plans to join world’s top 10 league of coal producers with production of 75 million tonnes a year by 2014.
Mechel unveils CAPEX program for 2007-2011
Mechel OAO one of the leading Russian mining and metals companies provided additional detail regarding its previously announced capital expenditure program for 2007-2011. It has decided to expand its capital expenditure program to USD 2.7 billion for 2007-2011 in both the mining and steel segments.
Mechel plans to invest about USD 1.5 billion in its steel subsidiaries from 2007-2011. Relative to 2006 levels the planned program will increase the segment's total steel output by 12% and will also lead to a 26% increase in the Mechel's output of rolled steel by 2011 and will also result in a shift in overall steel product mix to include a greater proportion of higher value added products at Chelyabinsk Metallurgical Plant Mechel's main steel asset about USD 1.3 billion will be invested in the modernization of CMP.
These investments will allow the plant to double its output of continuously cast steel billets while also extending its mix of construction and engineering rolled products. The investment plan also provides for the reconstruction of CMP's existing hot and cold rolling facilities with a concurrent increase in stainless steel flat rolled products output. To fulfill this task USD 250 million will be invested. The operations to realize this plan include.
1. Modernization of the continuous casting slab machine and construction of the complex of steel processing outside stove to increase the annual slab output to 1.2 million tonnes.
2. Reconstruction of hot rolling mill 2300/1700 to increase its annual capacity to 1.1 million tonnes including 400,000 tonnes of thick plates.
3. Reconstruction of the cold rolling shop to increase the output of the high quality stainless steel flat products. These investments will allow the plant to expand its product mix in terms of stainless flat products' sizes and grades while also improving product quality.
In the mining segment, Mechel has set an objective to increase its coal output to 25 million tonnes by 2010 from 17 million tonnes in 2006 and plans to invest about USD 1.2 billion in its coal sector during In order to expand its coal exports to the Asia Pacific Region and will reconstruct Port Posiet. The investment will total about USD 70 million. As the result, the port will become a modern sea terminal. This will allow Mechel to expand its sales market and reduce costs.
Mr Vladimir Polin CEO of Mechel Management Company commented that "Mechel intends to continue to grow and take advantage of the opportunities ahead of it. Our annual investments in production over the next five years amount to about USD 400 million USD 500 million and we expect to fund them out of our strong operational cash flow. Our previous capital expenditures have been key to the generation of our strong operational and financial results. The new well balanced capital expenditure program reflects Mechel's overall strategy aimed at further expanding its mining segment and increasing effectiveness and profitability of its steel segment. In both segments we are going to focus on the projects that will allow Mechel to achieve good operational results increase value added products output and productive efficiency."
CMC posted a record third quarter sales
Commercial Metals Company announced that it posted net earnings of USD 99.4 million on net sales of USD 2.3 billion for the quarter ended May 31st 2007 as against USD 78 million on net sales of USD 2 billion for the same period last year, ranking it as the strongest third quarter ever reported by it. This year's third quarter result included after tax LIFO expense of USD 20.1 million as against USD 28.6 million in last year's third quarter.
While, Commercial Metals Company’s net earnings for the September 2006 to May 2007 period is a record USD 250.7 million on net sales of USD 6.3 billion as against USD 227.7 million on net sales of USD 5.3 billion last year. For September 2006 to May 2007 period, after tax LIFO expense was USD 39.0 million compared with an expense of USD 40 million in 2006.
CMC said that selling, general and administrative expenses in the third quarter included USD 13.7 million of costs associated with the investment in the global deployment of SAP software while for September 2006 to May 2007 period, the amount was USD 24.4 million.
Mr Murray R McClean president & CEO of CMC said that "It was a terrific quarter, a record third quarter for the Company with four of our five operating segments setting third quarter records. Especially noteworthy were the performances of CMCZ, our Polish operation, and Marketing and Distribution. Both set all-time quarterly earnings records. CMCZ took full advantage of our integrated business model from our mega shredder, through our mill, and into our fabrication plants. Marketing & Distribution took advantage of our worldwide network. Ferrous scrap pricing, and consequently steel finished goods pricing, exhibited intense volatility in the period. This inevitably leads to erratic customer purchasing patterns particularly among merchant bar buyers. Volumes are distorted over any one quarter, but recover over time. Global metal markets remained vibrant."
Uzbekistan extends Uzbekugol tender to September 2007
Interfax reported that Uzbekistan's State Property Committee has put a tender for the sale of 35.55% of the shares in the country's biggest coal producer Uzbekugol back until September 5th 2007.
An Uzbekistan official told Interfax that the committee planned to announce the tender results during the fourth quarter of 2007 and that the preference would be given to the bidder who offers the highest price for the shares and undertakes to invest USD 232 million in the coal producer.
Uzbekistan originally called the tender at the beginning of October 2006 but it was called off as no competitive bids were received, and then extended until April 2007. Three Russian companies and one Indonesian company have submitted bids since then.
The source said that the tender had been put back again to give the committee the opportunity to examine the proposals and other potential investors the opportunity to come forward.
Uzbekugol produces more than 90% of Uzbekistan's coal. Uzbekugol mines the Angren lignite coalfield in the Tashkent region, which is Uzbekistan's biggest and has proven reserves of more than 1.9 billion tonnes of coal. The state owns 86.55% of the shares in Uzbekugol, employees 5% and other minority shareholders 8.45%. LLC Tashkent Management holds 25%.
Statoil inks pipe coating agreements with Bredero, Socotherm & Eupec
Statoil announced that it has signed frame agreements with Norwegian Bredero, Italian Socotherm and French Eupec for pipeline coating services relating to its pipeline projects. The 5 year contracts are estimated about NOK 3 billion.
The deals cover concrete weight coatings for steel piping and anti corrosion and thermal insulation coatings. Concrete weight coatings form the bulk of the deals scope.
Mr Odd Kristian Nøland head of procurement for the project execution unit in Exploration & Production Norway said that "With Statoil now establishing competition for this type of service as well, it is in accordance with the group and European Union's purchasing regulations of competition being key. In the time ahead, Statoil will have a need for big project related deliveries, such as on the Gjøa and Snøhvit fields. The greatest need will however be in relation to future development of infrastructure for gas deliveries to the continent."
Meisibulake coalmine project breaks ground
It is reported that Xinjiang Natural Product Co held groundbreaking ceremony for the 600,000 tonnes per year coking coal project of the Meisibulake coalmine at Baicheng in China.
The reports added that once Meisibulake Coalmine put into operation, this project would secure feedstock for the Dahuangshan Hongji 1.6 million tonnes coke and chemical project and upgrade the product mix.
The 6th farm division of Xinjiang Production & Construction Group is responsible for the coke & chemical work.
(Sourced from MySteel.net)
POSCO and Nippon promoting steel through a book for children
With an intention of strengthening the tie up between POSCO and Nippon Steel Corporation, a children’s book for learning steel was published by POSCO and Nippon Steel Corporation in early April 2007 bringing highly enthusiastic responses from the readers of both countries.
This children’s book unfolds the history of steel-manufacturing exchange between ancient Korea and Japan in dialogues. The story line goes that blacksmiths, described as goblin, produce cast iron in ancient Korea and disseminate it to Japan, and consequently, Japanese goblin called “Oni” comes to produce cast iron especially the fact that the whole story is written in both Korean and Japanese so that the children of both countries can learn each other’s culture and language adds more meaning to the book.
Since the distribution at the end of April 2007 to teachers and students in their 6th grade of five schools within POSCO Educational Foundation this children’s book has gained its popularity. Many of those who read the book agreed that they could newly learn about the history of steel through a uniquely designed small book.
POSCO and Nippon Steel Corporation distributed 10,000 and 50,000 copies of this book, published in the portable and convenient pocket book edition respectively.
Taiwan SS output in January to May dip by 4.5%YoY
It is reported that Taiwan's stainless steel sheet output in January to April 2007 went down by 4.5%YoY to 1,150,920 tonnes.
According to the Taiwan Steel and Iron & Industries Association total of 759,450 tonnes of HR sheet and 391,470 tonnes of CR sheet was produced in January to April 2007. This represented a 12.5%YoY decrease in HR sheet from 2006 and a 16% YoY rise in cold rolled sheet.
In April 2007, Taiwan's stainless steel output totaled 306,998 tonnes comprising 207,286 tonnes of hot rolled sheet and 99,712 tonnes of cold-rolled sheet. In comparison in March 2007, total output was 301,066 tonnes with 194,651 tonnes of hot-rolled sheet and 106,416 million tonnes of cold rolled sheet.
Taiwan's imports of stainless steel up by 29%YoY to 106,313 tonnes in January to April 2007. Of this, hot rolled sheet totaled 106,030 tonnes up by 37% YoY and cold rolled sheet totaled 33,713 tonnes up by 9% YoY.
Exemption sought on removal of special excise duty on steel in Pakistan
Pakistan’s Dawn reported that Islamabad Chamber of Commerce and Industry has sought exemption of special excise duty on steel products.
Dawn citing Mr Nasir Khan president of Islamabad Chamber of Commerce and Industry as saying that the special excise duty would make a negative impact and the price of steel would go up which may hamper construction progress. He added that as per agreement of steel association, the revenue generation would be increased from PKR 1 billion to PKR 16 billion in 2007 that would enhance 800% in 2007.
Mr Khan said removal of special excise duty would facilitate people and help check prices. He expressed satisfaction on the rise of foreign exchange reserves which are touching USD 16 billion mark where prices of certain commodities are high and need to be brought down to reduce dearness in the market.
Earlier Pakistan government had already exempted special excise duty on fertilizers, petroleum products, ghee, import of edible oil, local oil marketing products, carpets, sports goods, surgical equipment, textile energy sector and imported raw material for leather industries.
China to establish its first coal insurance company in Taiyuan
Xinhua reported that China is preparing to establish its first national level insurance company for the coal industry in the coal rich province of Shanxi. Its businesses will include liability insurance, property insurance, short term health insurance, credit insurance, guaranteeing insurance and life insurance.
Mr Wang Shouzhen director of the Shanxi Provincial Coal Industry Bureau said that China Coal Property & Casualty Company Limited was approved by the China Insurance Regulatory Commission and the State Administration for Industry and Commerce in May 2007. Mr Wang said that “The role of the new company, to be headquartered in Taiyuan, will center on accident prevention, economic compensation, capital flow and safety supervision."
He added that the stock company, with a registered capital of CNY 500 million (USD 65.8 million), was jointly proposed by 18 governmental departments and businesses, including the Shanxi Provincial Social Security Bureau for Coal Industry, the state owned China National Coal Group Corporation, and the Shanxi Coking Coal Group Company Limited. Shanxi Provincial Social Security Bureau for Coal Industry, which is affiliated with the Shanxi Provincial Coal Industry Bureau, has bought 20% of the new company's stocks for CNY 100 million, making it the largest shareholder.
The establishment of the company is a natural requirement for the healthy and harmonious development of the coal industry and coalmine accidents not only destroy miners' and their families’ lives but also cause huge economic losses for coal mine businesses. Local governments always have to pay a lot for rescue and compensation because some mine bosses flee after accidents occur. Apart from that, the single insurance can no longer meet the higher level and more diversified demands of miners and mine businesses in today's society and the employer's liability insurance provided by a few commercial insurance companies is not adequate in terms of insurance coverage and economic returns.
China reported 2,945 coalmine accidents resulting in 4,746 fatalities in 2006 down by 10.9% and 20.1% respectively over 2005.
Moody upgrade Severstal to ‘Ba2’
Moody's Investor's Service announced that it has upgraded the corporate family rating for Russian steel maker OAO Severstal to 'Ba2' from 'Ba3', while Moody's Interfax Rating Agency which is majority owned by Moody's has upgraded the national scale rating to 'Aa2.ru' from 'Aa3.ru'. The outlook on the ratings is stable.
The released said that the rating upgrade reflects Moody's track record of strong operating performance supported by an increasingly healthy domestic demand for steel products in Russia and the completion of the consolidation of its steel and mining assets within the group.
Moody's said the corporate family rating also reflects the remaining exposure of Severstal to the cyclicality of the steel industry mainly through its international operations in Italy, France and North America weaker than expected 2006 financial results its appetite for acquisitions and the evolving and less transparent Russian political, fiscal and legal environment. It also said it has also upgraded Severstal's probability of default rating to 'Ba2' from 'Ba3'.
Minara decreased nickel production guidance for 2007
Metals Insider reported that Australian nickel producer Minara has lowered its 2007 nickel production guidance to 31,000 tonnes to 33,000 tonnes from 32,000 tonnes to 35,000 tonnes.
Minara said a scale build up in the refinery section of its Murrin Murrin plant created a production bottleneck which resulted in an inventory of approximately 1,000 tonnes of mixed sulphides accruing in Q2 and understands the cause of this additional scale build up and it is anticipated that this issue will be resolved during the third quarter of the year.
Minara has experienced a wide range of technical problems with Murrin Murrin, which have prevented the plant from ever achieving nameplate 40,000 tonnes per year capacity. However, each passing quarter seems to bring an improvement in operating performance. April to June 2007 refined metal production came in at 7,598 tonnes up from 7,291 tonnes in January to March 2007 and from 6,758 tonnes in April to June 2006.
Russian ferroalloys export to EU in January to April 2007 dip by 20% YoY
Rusmet reported that during January to April 2007, Russian export of ferroalloys to European countries fell by 20%. In January to April 2007 Russia exported 0.1 million tonnes of ferroalloy products into European countries. The report added that in the first quarter of 2007 the decline amounted to 18%.
The Netherlands, the biggest buyer of Russian ferroalloys, has shortened deliveries in January to April only by 2% however other European countries such as Romania, Italy, Germany and Sweden decreased import of Russian ferroalloys much more. The growth of consumption of Russian ferroalloys in UK and Finland could not offset the general decline.
Mozambique to export 14 million tonnes of coal by 2020
Ms Esperanca Bias Minister of Mozambique Mineral Resources while speaking in an interview with APA in Maputo has said that APA Maputo Coal rich Mozambique expects to export at least 14 million tonnes of the fuel by 2010 from the Moatize coalfields.
She added that her government has approved the terms of a coal concession contract with a Brazilian firm Companhia do Vale do Rio Doce to carry out this major export. The contract for the mining of coal at the Moatize mining project in the country’s Tete Province is valid for a renewable period of 25 years.
Ms Esperanca said “Coal mining will begin in the Moatize area in 2010 and coal production will bring many changes not only to Mozambique but also to the Southern African Development Community where our exports are targeted at Malawi, South Africa and Zimbabwe.” She said Moatize, which has estimated coal reserves of 2.5 billion tonnes, represents an investment of USD 2 billion for CVRD USD 170 million of which will be financed by the company’s own reserves and the remainder obtained from investment banks.
The project will involve the development of the mine itself and the rehabilitation of the 550 kilometer Sena railway linking Tete and the port city of Beira and the line also has extensions to Malawi in the north of Mozambique and Zimbabwe in the west of the country two of the major clients of the Moatize coal supplies.
J Ray McDermott awarded pipeline project in Qatar
J Ray McDermott announced that it has been awarded a contract by Qatargas 3 and Qatargas 4 for the construction engineering, transportation and installation of two 38 inch diameter pipelines, totaling 130 kilometers in length, and two 22 inch diameter interconnecting pipelines in Qatar’s North Field.
The scope of work also involves laying a total of 138 kilometers of 38 inch diameter combined power and fiber optic cables interconnecting the wellhead platforms with the onshore facilities, as well as two 0.5 kilometer 22 inch diameter intra field pipelines. These intra field pipelines are fabricated with corrosion resistant alloy material. The pipelines will connect three wellhead platforms, WHP7, WHP8 and WHP9, with the onshore facilities at Ras Laffan Industrial City.
Mr Bob Deason CEO of J Ray said that “Winning this project signifies our customer’s confidence in our capabilities to handle major projects with successful results. Construction work is already underway on the three associated wellhead topsides that were awarded to J Ray in 2006. As such, J Ray will offer the customer greater synergies for the pipeline project, based on our project team’s experience with the topsides contract.”
Mr Deason added that the project will be executed by J Ray’s Jebel Ali, UAE based project arm and utilize the region’s marine equipment.
J Ray McDermott SA is one of the leading providers of solutions for the offshore field development industry worldwide and is a subsidiary of McDermott International, Inc. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees.
China discovers 213 mineral deposits in 2006
Interfax China reported that there were 213 mid to large sized mineral deposits discovered in China during 2006, including 85 metals resource deposits and 42 energy mineral deposits.
According to the China’s ministry of land and resources China had a total of 7.9 million tonnes of proven copper reserves in the Tibet Autonomous Region's Qulongdong copper deposit, 4.37 million tonnes of copper reserves in the Pulang copper deposit in Yunnan Province and 2.22 million tonnes of lead and zinc reserves in the Wulagen deposit in Xinjiang Autonomous Region's county of Wuqia.
The ministry also added that it also discovered 500,000 tonnes of prospective molybdenum reserves in Heilongjiang Province's Yichun-Yanshou Region, 119.5 million tonnes of prospective bauxite reserves in Guangxi Autonomous Region's Youjiang Region, 600,000 tonnes of tungsten and tin prospective reserves in the Xitian tin deposit in Hunan Province as well as a high grade iron ore mine in the Tibetan Nyixung Region.
In 2006, much progress was made in attracting foreign investors in mineral resource prospecting and mining with a total of 249 prospecting permits and 194 mining permits granted to foreign investor involved projects, such as the Xietongmen copper-gold deposit in Tibet and the Zhengguang gold and zinc deposit in Heilongjiang Province
By the end of 2006 there were 26,059 prospecting permits for mineral resources and 117,910 mining permits nationwide among which 6,129 prospecting permits and 16,032 mining permits were issued in 2006. Chinese mining companies also made achievements in prospecting and mining for nonferrous resources such as copper, nickel and bauxite, as well as overseas precious metals in cooperation with international mining companies.
China’s import and export turnover of mineral products reached USD 383.9 billion in 2006, accounting for 21.6% of the nation's total, which included the imports of 145.18 million tonnes crude oil, 326.32 million tonnes of iron ore, 6.21 million tonnes of manganese ore, 4.32 million tonnes of chromite ore and 3.63 million tonnes of copper ore.
Bagang joins CDM club in China
It is reported that Bagang recently signed CDM agreement with Deutsche Bank, which allowed the steel maker to become the first beneficiary from CDM project in the western China.
As per report, power generator based on waste heat from 2×55 holes 6 meter coke oven coke dry quenching to be launched next April could reduce discharge of SO2 by 193,000 tonnes per year and Bagang could obtain proceeds of CNY 14.8 million per year from reducing emission.
China US H1 trade surplus forecast over USD 100 billion
It is reported that China's trade surplus with US for the first half of 2007 is expected to cross USD 100 billion. The report citing Mr Yao Jingyuan chief economist for the China’s National Bureau of Statistics said that the total trade with the United States for the first half 2007 is expected to top USD 1 trillion up by 24% YoY.
He said that “The trade surplus reached USD 85.7 billion in January to May 2007 and for the first half of the year will exceed USD 100 billion.”
American lawmakers are calling for legislation to impose higher tariffs on imports of Chinese goods or take other punitive steps if Beijing fails to ease currency controls that some say are broadening the surplus. The growing gap also is causing financial problems for Beijing, which is forced to drain billions of dollars a month from the economy to reduce pressure for prices to rise. Chinese government says it is not actively pursuing a surplus and has taken steps to slow exports, including revoked rebates of value added taxes for exporter
China reported a global trade surplus of USD 177.5 billion in 2006.
