India iron ore export tussle on again

The tussle between Indian iron ore miners and steel makers is escalating again, although India’s high powered group of ministers last week recommended that there should be no restriction on export of iron ore. According to India's iron ore industry, duty on exports imposed in February 2007 and a strong rupee had dragged down sales of iron ore, and have called for removal of the export tax but Indian steel makers disagree with the report and have again sought a cap on overseas shipments.

The Federation of Indian Mineral Industries said that April to May 2007 exports had dropped to 16.41 million tonnes down by 2% YoY from 16.75 million tonnes, despite China's roaring appetite for iron ore. Mr Glenn Kalvampara joint secretary of the Goa Mineral Ore Exporters Association said that Iron ore exports from the key coastal state of Goa during April to May 2007 fell to 6.3 million tonnes down by 14% YoY from 7.4 million tonnes.

Mr RK Sharma secretary general of FIMI told Reuters that "Despite strong demand from China, the appreciation in the value of rupee and the export duty has not allowed us to take the full advantage." Mr Sharma said that demand was so hot that ore exports could have surged by 25% to 30% YoY in May 2007 but the duty and rupee value had sharply pegged back growth.

Mr DK Sahni president of FIMI said that there could be an estimated revenue loss of INR 4,554 crores in case of 30% reduction in exports and a revenue loss of INR 2,642 crores in case exports dipped by 20%. He said "Imposition of export duty will roll back and throttle all the initiatives taken by the mining industry. In fact, ore exporters are losing between INR 200 to INR 300 per tonne owing to rupee appreciation.”

On the other hand, Mr Moosa Raza president of Indian Steel Alliance said that "Our information is there has been no adverse impact at all on the export of iron ore as a result of imposing the export duty. We the steel industries are continuing to plead with the government to impose a cap on export of iron ore, pegged to the 2006 export level.”

The Indian government initially set an export duty of INR 300 per tonnes of all iron ores, but later cut the rate applicable to low grade sales to INR 50 following protests by the mining industry. Indian rupee hit a 9 year high of 40.28 to a dollar in late May and has only slightly weakened since, raising concern among many exporters.

Coal ministry to finalize a new coal policy soon

BL reported that union coal ministry is likely to finalize the new coal distribution policy in the next couple of weeks for bringing more transparency in the sale of coal, reducing the number of industries in the core sector and putting in place a new system for ensuring fuel linkages to the booming power sector.

The report cites a senior coal ministry official as saying that “The file would be sent for the Prime Minister’s approval in the next couple of days and we expect the policy to be cleared in the next 10 to 15 days. The power sector operates in a regulated environment where the cost at which it would sell power is determined by the electricity regulatory commission and companies in the sector are not allowed to charge market determined prices from the consumers.”

A draft of this policy, under the chairmanship of the coal secretary has recommended that the existing core and non core sectors be reclassified into regulated and other sectors for the purpose of prioritizing coal distribution.

An inter ministerial committee was set up by union coal ministry following the Supreme Court ban on e auction of coal by Coal India in December 2006. Only the power sector, which consumes around 80% of the coal produced in India, is likely to continue in the core sector. Under the existing policy, sectors such as steel, cement, fertilizer, aluminum and paper also constituted the core sector.

SAIL BSP developing vanadium alloyed rails

FE reported that Steel Authority of India Limited’s Bhilai Steel Plant, under its program for developing new products through process improvement and research & development to meet to the changing needs of the customers and to increase market share, is developing a new variety of rails. BSP is the sole supplier of rails to the Indian Railways.

As per report, BSP’s research wing in collaboration with SAIL's Research & Development Centre for Iron & Steel is developing new rail profiles for the railways with an eye on making rail travel faster and smoother and meeting stringent requirements for heavy haulage tracks for freight movement.

Following encouraging test results in the plant's RCL and SAIL's RDCIS BSP is now ready to dispatch the first lot of 500 tonne of vanadium rails to be laid along the Jharsugda route in South East Central Railway for on track trials. Recently developed vanadium micro alloyed rails have high YS to UTS ratio, which is suitable for use in high density and heavy haulage routes although its corrosion resistant properties are not as high as the Cu and Mn rail developed earlier by BSP.

Indian Railways has been looking for higher strength rail material in view of increased axle loads and higher train speed being employed to cater to the demand of rapid industrialization. For this, Bhilai Steel Plant has developed chromium alloyed high strength rail having tensile strength in excess of 1050MP.

TATA Steel to have capacity of 56 million tonnes by 2015

It is reported that TATA Steel will have an annual capacity of 56 million tonnes by 2015.

Mr Ratan Tata chairman of the TATA group & TATA Steel in his letter to the shareholders said that "Two years ago TATA Steel had initiated steps to establish 3 Greenfield steel plants with captive iron ore mines in Orissa, Chattisgarh, and Jharkhand. This would add an additional capacity of 23 million tonnes. As and when these additional capacities come on stream, hopefully by 2015 TATA Steel will have an annual capacity of 56 million tonnes."

Mr Ratan Tata stressed the importance of the TATA Steel Corus deal and said that the coming together will be of tremendous strategic value to both organizations. He said “The leveraging of low cost intermediate products from India with further processing at Corus to produce high end finished products along with several operation related initiatives will improve the competitiveness of Corus in the European markets while India will benefit from high value sophisticated finished products developed in Corus R&D facilities.

TATA Steel is also actively exploring operations in resource rich countries for iron ore, and coal as also seeking fresh leases for iron ore and coal at various locations in India. He added that "Focused efforts are being made by the company to achieve higher levels of raw material security to meet its increased needs in line with its future growth aspirations.”

FIMI opposes proposal for ad valorem royalty on minerals

It is reported that the Federation of Indian Mineral Industries has opposed the introduction of ad valorem royalty system for minerals as proposed in the draft National Mineral Policy 2007 approved by the Group of Ministers last week as it would create administrative difficulties and lead to litigations and an upward revision in royalty rates based on the quantity would be more realistic.

Mr Rahul N Baldota VP of FIMI at a press conference said that “The ad valorem royalty system can create more issues and would be difficult to monitor. The industry does not mind an upward revision of royalty rates on tonnage basis as it would be easy to monitor.”

FIMI said that in the ad valorem system, the royalty is presently charged on state wise average value of minerals by grades as calculated by the Indian Bureau of Mines but for the purpose of computation of royalty, the state governments add 20% of this benchmark value to the royalty for the final payment. Mr RK Sharma secretary general of FIMI said that “This practice is not reasonable and has no basis. FIMI would therefore like to request the Ministry of Mines for the deletion of the 20% of the benchmark value in the royalty payable by the mine owners.”

Orissa government rejects BHPB alumina venture

FE reported that Orissa government has rejected BHP Billiton's proposal to set up a 3 million tonne alumina refinery special economic zone in Gopalpur with an investment of USD 3.3 billion (INR 14,000 crore).

As per report Orissa government refused to accept the offer on the ground that the project did not have any proposal for aluminium smelter. The state government, which is insisting on value addition to at least 50% of the alumina in the state as part of its bauxite mineral policy, has asked the company to submit a fresh proposal with facilities for production of aluminium.

BHP Billiton has sought bauxite mines with proven reserve of 300 million tonnes and 5500 acre in Gopalpur for the project.

JSW to invest in service centers in Europe

Reuter reported that JSW Steel Limited is planning to invest USD 70 to USD 75 million for buying up to five service centers in Europe to cater to the automobile industry.

Mr Sajjan Jindal vice chairman and MD of JSW said that "The Company plans to sell its value added cold rolled products to the automobile industry for which it would need the service centers." He said it plans to have service centers in France, Italy, Germany and the Netherlands but did not say by when these would be completed.

Earlier in 2007 JSW bought 100% stake in an UK based service center Argent Independent Steel Limited for GBP 3.75 million.

SAIL moving ahead on Chiria iron ore mine development

It is recently reported that the Steel Authority of India Limited board has allocated INR 1,800 crore for enhancement of mining capacity at its Chiria iron ore deposits up to 7 million tonnes per annum in the first phase by 2010-11 from the present 1.5 million tonnes per annum with subsequently enhancements to 10 million tonnes per annum, 15 million tonne per annum and 20 million tonnes per annum in phases.

Mecon has already prepared the feasibility report for expansion of plans, the environmental impact assessment has been completed & SAIL has applied for no objection certificate and preparation of mining plan by Indian Bureau of Mines is under process.

It is further reported that SAIL would engage another reputed consultant to prepare the detailed project report for expansion and mechanization of its mining operations at Chiria mines in Jharkhand.

SAIL has chalked out plans for a whopping increased in steel production capacity in Jharkhand to 29 million tonne from the present 5.2 million tonnes. It plans to enhance the capacity of Bokaro Steel Plant to 7.5 million tonne by 2010 with an investment of INR 13,000 crore and the capacity would be later increased up to 17 million tonne. SAIL has requested the Jharkhand state government to provide land to set up 12 million tonnes green field steel plant.

Indian minor ports to add 611 million tonne in 11th Plan

BL reported that India’s minor ports in Gujarat, Maharashtra and Andhra Pradesh are likely to drive the port capacity expansion of the country over the next 5 years.

Mr AK Mohapatra secretary department of shipping said that “At present, the non major ports have a capacity to handle 228.3 million tonnes per annum traffic, while the major ports have a capacity to handle 508 million tonnes per annum. We have initiated the process of involving maritime States in common endeavor to expand port capacity. On the basis of plans made by these States, it is expected that non major ports would contribute 839 million tonnes per annum by 2011-12.”

As per report, the minor ports are expected to add 610.85 million tonnes per annum capacity during the 11th Plan period of 2007-08 to 2011-12 taking the total minor port handling capacity to 839.168 million tonnes per annum.

In million tonnes per annum
Target period is up to 2011-12

Compared to total port capacity both major and minor ports of 737 million tonnes per annum in 2006-07, the ports handled 649 million tonnes per annum in which major ports handled 464 million tonnes per annum traffic and minor ports handled 185.54 million tonnes per annum.

Since the total required port capacity by 2011-12 is about 1,500 million tonnes per annum, the government expects the major ports to add about 500 million tonnes per annum while the minor ports can handle the rest.

Non major ports, also called minor ports, are the ports that are under the states’ jurisdiction, while major ports are under the center’s jurisdiction.

Orissa bureaucrats likely to quit iron ore rush – Report

Times News network last week reported that Bhubaneswar Club Limited is applicant no 56 for allotment of Khandadhar iron ore deposits in Sundergarh district of Orissa.

The report cited Mr Ashok Chinchilla secretary of Bhubaneswar Club as saying that " Bhubaneswar Club Ltd is listed as applicant number 56. The application was filed following a decision by the club management and the idea is to supply iron ore to steel units in the state at reasonable prices. The club has no plans to set up a steel plant in consonance with the government policy of value addition. We filed the application in state interest to ensure availability of ore to steel plants. We are not seeking profits, but would supply the raw material for value addition to other companies on cost to cost basis."

However a subsequent BS report, mentioned that Bhubaneswar Club is likely to decide on taking back the application to avoid further row on the matter. The report cited Mr Chinchela as saying that “The management committee of the club will meet soon to take a decision on the future of the mining lease application.”

The matter has come to a head with a written reply by Mr P Behera steel and mines minister of Orissa in the Assembly. Union Ministry of Personnel is reported to have taken a serious view of the matter as many senior bureaucrats are permanent members of the club and Mr Priyabrata Patnaik president of the club is currently serving as Orissa’s secretary commerce and transport and is the nodal officer for the POSCO project in the state.

L&T, Bharati Shipyard & Korean STX submit EoIs for shipyard on West coast

Exim News Service reported that Larson & Toubro, Bharati Shipyard Limited as well as the South Korean firm STX Shipbuilding Company has submitted expressions of interest to set up a shipyard on the West Coast before the deadline of July 4th 2007.

The report cites a shipping ministry official as saying that the proposed yard is expected to have the capacity to repair and refit 70 to 80 ships of different types in a year and should be able to expand capacity to construct ships of up to 300,000DWT, which may be containerships, liquefied natural gas carriers, very large crude carriers Suezmax and Capesize carriers.

Indian government is planning to develop 2 international size shipyards, one each on the East and West Coast of India, with private investments, to strengthen the shipbuilding infrastructure in the country and had invited EoIs for the development, construction, operation and management of international size shipbuilding facilities. The Mumbai Port Trust is the nodal agency to process the tender.

GAIL forms a 50:50 JV with China Gas

Gail India Limited has recently announced that it has entered into a 50:50 JV agreement with China Gas Holdings Limited on June 26th 2007 for pursuing gas sector business opportunities in areas of compressed natural gas & city gas, coal bed methane, pipelines and liquefied natural gas in China, India and other countries. The JV will draw on GAIL’s expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts.

Both GAIL and China Gas shall have equal representation in the management of JV and the JV Board shall comprise of four directors, two from each Company. Chairman of the board shall first be nominated by GAIL and such nomination shall rotate between the GAIL and China Gas in every two years.

Dr UD Choubey CMD of GAIL has expressed satisfaction at the progress thus far and urged that following the JV action should be speeded up on the city gas front and also suggested that the JV could look into possible joint working in the area of modular LNG systems, which China Gas had been pursuing.

Mr Liu Ming MD of China Gas Holdings said that China Gas is one of the first overseas strategic investors in GAIL and looks forward to greater opportunities for joint working with GAIL in India and other countries.

It may be recalled that in May 2005, GAIL had made a strategic investment in China Gas by acquiring 210 million shares and it currently holds around 7% equity interest in China Gas.

Indian purchase of thermal coal from SA slows down

Reuters reported that Indian purchase of South African thermal coal has slowed considerably due to falling prices in the steel market they supply & rising costs for imported coal and is unlikely to pick up until September 2007, when current high stocks had been consumed.

Indian coal producers and traders said that a sharp fall in Indian buying for even a few weeks would be likely to cause South African prices to fall. They added that "There is no demand from Indian traders because there is very little demand from end users. In any case, traders are still selling stocks from cargoes brought in at much lower prices than current levels. There are full stocks at all the ports and these will take a couple of months to be used up. The big corporate buyers and the small consumers have got almost all that they need now and there is no need to buy."

South African coal producers said that they had not made any fresh sales into India or Pakistan during the past two weeks, although they were still receiving enquiries. Coal producers and traders remain confident of renewed demand for South African cargoes from India and Pakistan, but also from South Korea as well as Japan. They added that “Indian consumers are reluctant to pay a delivered price of USD 90 CIF. If prices fall back to USD 80 to USD 85 CIF, then another few million tons could be bought for shipment this year.”

As per report, India and Pakistan have imported about 4 million tonnes of South African coal in 2007 almost all via Indian trading companies. India's emergence as an unexpectedly strong buyer this year, seeking to replace lost tonnage from China and Indonesia, pushed prices up from USD 47 FOB Richards Bay Coal Terminal in January 2007 to last week's high of about USD 61 FOB. As spot demand from Europe, which consumes the vast majority of South Africa's coal, is expected to remain scant at least until the end of the European summer, the prices are likely to move southward.

NMDC bags award for excellence in cost management for 2006

It is reported that National Mineral Development Corporation Limited has received the national award for excellence in cost management for the year 2006. It was ranked 1st in the category of public sector manufacturing organizations for its cost management practices.

The award was conferred on NMDC for cost reduction through effective utilization of human resources, reduction in power, fuel consumption and selling and distribution costs reflected in the high growth achieved by NMDC in 2005-06.

The award is instituted by the Institute of Cost and Works Accountants of India.

Sanghi to expand its TMT steel plant in the next 2 years

It is reported that Sanghi Industries Limited, a part of the INR 3,500 crore Sanghi Group, is planning to go in for expansion of its TMT steel plant from 200 tonnes per day to 400 tonnes per day in the next two years.

Mr Alok Sanghi director of Sanghi Industries said that “We will be expanding our TMT steel production from present 200 tonnes per day to 400 tonnes per day in the next one and half to two years. The purpose of setting up terminals in the country is to reduce freight charges.” Mr Sanghi did not divulge further information on the investments into the expansion.

He however added tat they are setting up port terminals in Navlakhi, Dahej, Mumbai, Mangalore, Karwar, and also in Rasalkhema, Iraq, Oman and Colombo.

CARE reaffirms ‘AA’ rating of JSPL

CARE has recently reaffirmed the ‘CARE AA’ rating to the existing Secured Non Convertible Debenture issues aggregating INR 23.3 crore of Jindal Steel & Power Limited.

CARE said that “The rating reflects the strong market image of the company, experienced management, dominant position in the sponge iron industry, vertically integrated operations with captive iron ore mines & collieries and captive power and high growth recorded in the recent past aided by expansion of facilities. The rating also factors in the consistent profitability track record of the company healthy operating cash flows and improved product mix with higher presence in value added steel products.”

CARE added that “The rating, however factors in the risks associated with the ongoing expansion projects high committed exposure to Jindal Steel & Power Limited’s 1000 MW power project, moderate financial flexibility and inherent cyclic nature of the steel industry. JSPL has also announced its plans to set up Greenfield integrated steel plant projects at Orissa and Jharkhand.”

JSPL, part of the OP Jindal group, was formed in April 1998 by hiving off the Raigarh and Raipur manufacturing facilities of Jindal Strips Limited into a separate company. JSPL’s product mix includes sponge iron, power and steel products such as rounds, billets, beams, blooms, slabs, rails, beams and plates.

GoM on Sasan UMPP to meet again on July 24th 2007

It is reported that after a meeting of the empowered group of ministers, which has been mandated with adjudicating on the award of the 4,000MW Sasan ultra mega power project following glitches in the bidding process, which ended inconclusive, the next meeting of the panel, is scheduled for July 24th 2007.

Mr Sushilkumar Shinde union power minister said that “There are some new issues that have been raised and it requires some time. The GoM will now be held on July 24th 2007.”

Mr Shinde said that the GoM has been constituted to eliminate delays due to technical and legal issues in the implementation of ultra mega power projects and would not examine the bids but would only step-in in cases where issues became complex. He added that the group is examining all options so that future projects do not get affected in a similar manner.

Meanwhile, the bidders for the Sasan project like Lanco Infratech, Reliance Energy and NTPC Ltd have been asked to extend their bid validity by one month to August 4th 2007.

GoM was set up after the government and Power Finance Corporation had failed to decide on the fate of the project. PFC is the nodal agency for implementation of ultra mega power projects.

IL&FS to set up 4,000 MW coal based power plant in TN

It is reported that Infrastructure Leasing & Financial Services is planning to develop a 4,000MW coal based power plant at Cuddalore in Tamil Nadu with an investment of around INR 16,000 crore to INR 20,000 crore. The plant will run almost entirely on coal imported from Indonesia.

The report added that so far 8 companies have expressed interest in putting up the merchant power plants including GEA Energy Systems, Kirtilal Kalidas & Company and the Chennai based Surana Group.

India’s bio fuel program to be developed on PPP

It is reported that the Bio fuel program in India is to be developed on public private partnerships, which would promote bio fuel plantations on government, community and private lands, and the industrial sector is also being encouraged to increase ethanol production from non food feed stocks.

Mr Vilas Muttemvar minister for new and renewable energy while addressing the International Bio fuels Conference said that “Several Indian corporate and business houses have in collaboration with the Government started to establish Jatropha plantations on waste lands or have begun contract farming on private holdings.”

He added that several state governments have announced policies to encourage Jatropha cultivation, setting up bio diesel plants and supply chains up in many states. Incidentally, 100% foreign direct investment in new and renewable energy is allowed under the automatic route in India.

Mr Muttemvar said that the government is in the process of preparing a National Policy on Bio fuels expected to lay the foundation for the accelerated development of the sector and the areas likely to be covered there in are R&D, capacity building, purchase policy and registration for enabling bio fuel use. The policy will aim at a short term blending proportion of 5% by 2012, medium term of 10% by 2017 and a long-term of above beyond 2017 and the policy would also recommend fixation of minimum support price for Jatropha and other non edible oilseeds.

BHEL to pick up minor equity stake in power projects

FE recently reported that Bharat Heavy Electricals might pick up 10% to 20% equity stake in power projects using 800MW thermal sets with super critical parameters.

As per report, BHEL is in talks with project developers including the state electricity boards of Maharashtra, Tamil Nadu and Andhra Pradesh for acquisition of equity and has tied up for technology with Siemens and Alstom.

BHEL’s move comes after the National Manufacturing Competition Council recommended that, the first lot of 10 units of 800MW plant be procured from BHEL. The 800MW sets can bring in more efficiency and cut down on pollution by better burning of coal.

Global Q1 crude SS production up by 15% YoY

International Stainless Steel Forum announced that the global stainless crude steel production was 7.6 million tonnes in January to March 2007 up by 0.7% QoQ as compared to October to December 2006 quarter and up by 15% YoY as compared to January to March 2006 quarter.

In comparison to October to December 2006 quarter, major increases in production were seen in the Eastern Europe and Americas regions and Asia and Western Europe & Africa regions showed almost no change in production volume.

In comparison to January to March 2006 quarter, Asia, driven by China, is took the lead with a production increase of 25.2% YoY. The Central and Eastern Europe region also shows a strong increase in this comparison but Americas and Western Europe & Africa regions performed according to their long-term averages.

In ‘000 tonnes
Source ISSF

US ITC votes to expedite sunset review on silicomanganese

The US International Trade Commission announced that it voted to expedite its five year sunset reviews concerning the antidumping duty orders on imports of silicomanganese from India, Kazakhstan and Venezuela.

Mr Daniel R Pearson chairman, Ms Shara L Aranoff vice chairman, and Ms Charlotte R Lane commissioner, Mr Irving A Williamson commissioner, Mr A. Pinkert Dean of the US ITC concluded that the domestic group response for this review was adequate and the respondent group responses were inadequate and voted for expedited reviews. Commissioner Ms Deanna Tanner Okun concluded that the domestic group response was adequate and the respondent group responses were inadequate, but that circumstances warranted full reviews.

The Commission will conduct expedited reviews to determine whether revocation of the orders concerning this product would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.

China steel export to decline during June to July 2007 – Analysts

Mr Chen Zhongtao a senior economist from China Logistics Information said that "The steel export witnessed downward trend in May 2007 and is expected to see obvious declines during June to July 2007 or even the second half. Domestic oversupply will be aggravated once steel export falls down as fresh capacity consumption relies heavily on exports."

Statistics shows that steel exports climbed up gradually from January to April 2007 and surged to hit some 7.16 million tonnes only in April 2007. However, steel exports only stood at some 6.17 million tonnes in May 2007, the first decline since the beginning of 2007.

According to information from China Logistics, index for fresh orders dropped in June 2007, demonstrating that steel exports would continue to slide.

Recently, NDRC and steel enterprises have touched upon that steel export will accounted for some 10% of the China's total outputs in 2007. However, the export took up by 12.53% of the output during January to May 2007, denoting that steel product export would have slower paced in the future.

Mr Nie Xiuxin a researcher from Ping'an Securities attributed the possible export decline to the export tax rebate cut. He said that steel product prices dropped under the influence of steel export rebate cut.

Besides, Mr Mei Xinyu an expert from MOFCOM also pointed out that some dealers and steel makers honored export contracts in advance to avoid possible profit losses caused by relative macro policies. And this was also another important factor contributing to the future drop on steel export.

China's steel output has already reached some 46 million tonnes by April 2007 some 47 million tonnes by May 2007, representing annualized outputs of over 500 million tonnes. Mr Chen analyzed that "Under such circumstances, fiercer competition will appear in domestic market during the second half once export growth is lower than the output growth."

(Sourced from MySteel.net)

Russia unveils metallurgy sector strategy to 2015

It is reported that the Russian industry and energy ministry has approved a metallurgical industry development strategy to 2015, the main goal of which is to create the conditions for economic development, based on innovation in the sector, in the country as a WTO member.

The strategy projects finished steel roll consumption to increase 48.4% in 2010 and 66.7% in 2015 compared with 2005. Flat products would account for 44.7% of all roll produced in Russia in 2010 and 48% in 2015, compared with 43.8% in 2005. Demand for steel pipes could hit 10.4 million tons by 2010 as the oil and gas industry expands, and Russia would not be importing more than 12% of those pipes, according to the strategy. Demand for pipes could rise to 11.7 million tonnes in 2015 and imports would represent 8.5% of that amount. Demand for pipes would be seated not just in the need to build new pipelines but also to renovate existing pipelines.

Russia would be producing 80% to 85% of its copper and 65% to 70% of its nickel by autogenous methods in 2010 and 85%to 90% and 70% to 75%, respectively, in 2015. The country would be producing 75% to 80% of its aluminum with pre baled, dry and semi dry anodes in 2010 and 80% to 85% by 2015, and capacity to produce alloys will increase.

The strategy will be supported by improvements in the mining and scrap metal industries and it would be implemented in three stages 2007-2010, 2009-2010 and 2011-2015.

The ministry said most of the sector's enterprises had approved investment programs to 2010 and beyond, to 2015. They are scheduled to pump significant amounts into refurbishments and modernization, and the production of competitive, value added metals already in 2007-08. The ministry said the metals industry's capitalization was around RUB 4.232 trillion (USD164 billion) today, and could rise to RUB 4.9 trillion (USD 196 billion) by 2011 and RUB 6 trillion (USD 240 billion) by 2016.

Russia is the world's 4th biggest steel producer after China, Japan and the United States. It is the world's third biggest steel exporter after China and Japan. It is the world's second biggest aluminum producer and exporter after the United States, the biggest nickel exporter and second biggest titanium producer.

Global iron ore trade statistics for 2006

According to the latest statistics from ISSB, the largest exporters of iron ore in 2006 are Australia and Brazil. Australia exports in 2006 reached 248 million tonnes up by 4%YoY and Brazil moved almost level with an export rise of 8%YoY to 243 million tonnes. Indian exports have grown fast reaching 90 million tonnes in 2005 but were down by 8%YoY over January to October 2006.

China imported 275 million tonnes in 2005 and 326 million tonnes in 2006 up by 19%YoY. Main sources were Australia with 127 million tonnes up by 13%YoY, Brazil with 76 million tones up by 40% YoY and India with 75 million tonnes up by 9%YoY between them accounting for 85% of the total. January to April 2007 saw imports up by 23% YoY to 134 million tonnes. 85% came from the three major exporters, Australia with 51 million tonnes up by 24%YoY, India with 32 million tonnes up by 20%YoY and Brazil with 30 million tonnes up by 24% YoY.

EU25 imported 172 million tonnes in 2005 and 169 million tonnes in 2006. Japanese imports were also steady at 132 million tones in 2005 and 134 million tonnes in 2006.

US weekly steel production down by 6.3 % YoY

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

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

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

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

Pakistan to review AD on tin mill products from South Africa

Pakistan Daily Times reported that Pakistan’s National Tariff Commission has issued a notice of initiation to sunset review of anti dumping duty imposed on imports of tinplate from South Africa and has asked the interested parties to respond to the commission for possible increase, decrease or total elimination of duty in the review. Upon examination of a duly substantiated request, the commission will initiate a review to determine whether the expiry of the anti dumping duty imposed on tinplate is likely or un likely to lead to a continuation or recurrence of dumping and injury.

As per report, this notice was issued due to a review petition filed by a domestic tinplate producer Siddiqsons Tin Plate Limited, who has approached the National Tariff Commission for extension of duration for imposition of anti dumping duty on import of tinplate from South Africa. Siddiqsons Tin Plate Limited has claimed that the expiry of the anti dumping duty imposed on tinplate will lead to a likely continuation or recurrence of dumping of tinplate and injury to the Pakistani domestic industry.

The basis of such a claim is that the exporters have stopped its exports of tinplate to Pakistan after the imposition of anti dumping duty. Siddiqsons Tin Plate Limited is of the view that if the anti dumping duty expires, exporters will start exporting tinplate to Pakistan very low prices. It is further alleged that the expiry of anti dumping duty would lead to regaining the imports of the product under review into Pakistan which is likely to lead to a recurrence of material injury to the domestic industry, mainly, by way of loss in sales and output, price under-cutting, decrease in profitability, capacity under utilization and negative effects on the inventory, cash flows, employment, wages, growth, investment and the ability to raise capital.

This application has been made following the publication of a notice of impending expiry of anti dumping duty imposed on dumped imports of flat rolled products of iron or non alloy steel of 600 mm width, plated or coated with tin of a thickness of less than 0.5 mm produced by Iscor Limited and exported by Macsteel International SA Ltd into Pakistan.

Pakistan’s National Tariff Commission had imposed an anti dumping duty with effect from July 22nd 2002 for a period of 5 years on tinplate produced by the producer and exported by the said exporter.

Shadeed Iron & Steel DRI plant to start in August 2008

Times of Oman reported that the USD 750 million Shadeed Iron & Steel Company coming up in Sohar region of Oman is ahead of schedule and is expected to begin DRI production in August 2008 and the steel melt shop is expected to commence production in the second quarter of 2009.

Shadeed Iron & Steel Company would have a combined production of 1.5 million tonnes per annum of iron and steel based on Hotlink technology.

Mr Ali Hamel Al Ghaith chairman of Al Ghaith while introducing Dr BN Singh who was appointed the MD of Shadeed Iron and Steel told media person that “The induction of Dr Singh into the Shadeed team is a further reiteration of our commitment to carrying forward the project aggressively and ensure that it emerges as a leading steel manufacturing unit in the region in a short time.”

Dr Singh said that he is pleased to be part of Shadeed Iron and Steel, which has committed leaders at the helm coupled with strong financial backing from Al Ghaith Holdings. He added that “We want to make Shadeed Iron & Steel a prized part of Oman and as part of this commitment we will hire and train Omani youth according to the Oman's rules and make them suitable for our plant.”

Shadeed Iron and Steel Company is a fully owned subsidiary of Al Ghaith Holdings PJSC a UAE based company.

Ural Steel upgrades its plate mill

It is reported that Russian Metalloinvest’s Ural Steel has completed the first stage of the USD185 million plate mill modernizations. The upgrade will make hot rolled plate production capacity up to 1.2 million tonne per year from the current 850,000 tonne per year.

Mr Sergey Shishkovets GD of Ural Steel said that “The 2800 mill is the heart of the steelworks. Its production is responsible for 50% of the total profit of the enterprise. Upon completion of the modernization, the new mill will produce better plate which is in strong demand by the market the total output of the near future has been already booked by customers and development program will provide for satisfying client needs which guarantees successful future of Ural Steel.”

The modernization of the mill is being carried out in the framework of a five year development program of Metalloinvest which envisages a USD 5 billion investment into the enterprises of the holding and is a two stage process. The first stage included preparatory work to install a four high mill stand supplied by the German SMS Demag. This will allow for better production quality and output increase up to 100,000 tones monthly from the current figure of 65,000 tonnes to 70,000 tones with 50% of the output being high grades of steel. The second stage of the modernization is scheduled to the 4th quarter of 2007.

Ms Clinton promises labor friendly White House to US steel workers

AP reported that Ms Hillary Clinton promised cheering United Steel Workers members that she would offer a labor friendly White House and would promote manufacturing if elected as president.

Ms Clinton the democratic senator from New York told union leaders at a conference on manufacturing sponsored by the United Steel Workers that "We are going to revitalize our manufacturing base. I do not think we can be a great nation without a manufacturing base. If we don't keep making things, we're not going to sustain our economic standard of living or our quality of life.”

Ms Clinton added that she hears people say that manufacturing cannot be revived but said she disagrees and said that “A revival could come through targeted high tech industries. We have got to be smart about that.”

Ms Clinton drew cheers with commitments to legislation making it easier for union membership drives and a promise to make union friendly appointments. But she avoided discussion of the North American Free Trade Agreement, which unions blame for the loss of jobs, but promised to make sure trade agreement provisions are kept to insure fair trade.

According to the Federal Reserve Bank of New York US has lost 5 million manufacturing jobs in three decades and the manufacturing share of the nation's work force has dipped from 20% in 1979 to 11%.

China to increase steel imports to reduce trade surplus

It is reported that China intends to boost the value of its steel imports by 25% to USD 1 trillion by 2010 as part of efforts to manage its trade surplus.

Mr Wang Xinpei a spokesman for China’s ministry of commerce said that "We will try to improve the structure of steel exports and at the same time increase our imports, aiming to bring the trade value of imports up to more than USD 1 trillion from the present USD 800 billion.”

Mr Wang said China has been attempting to reduce exports by adjusting the exports structure through changes to export tax rebates and stricter controls over pollution, energy and resource consumption. The changes are for the benefit China and the rest of the world.

Markets analysts admit that Mofcom's intention to increase steel imports would help tame China's hefty trade surplus due in part to surging steel export. However, they are concerned that domestic steel market would be under pressure once the value of steel imports exceeds USD 1 trillion by 2010 and that Beijing's persistent efforts in leveraging tax rebate change to curb steel exports have already paid off. Subsequently, increasing supply previously targeting at export would be directed to domestic market.

(Sourced from MySteel.net)

Atlantic to build a silicon plant in Sichuan Province

It is reported that Spain based Atlantic Ferroalloy Company will invest USD 150 million in construction of a 150,000 tonnes per year silicon plant at Sichuan Province in China.

Mr Michel Vilar president of the Atlantic Ferroalloy during the China Sichuan Spain Economic Exchanging Conference said that the construction of the Sichuan plant would be divided into 2 phases. He said “The company is selecting a cite among Sichuan Province's Aba, Mianyang and other cities for the silicon plant and its decision will be confirmed this September. Sichuan is rich in resources, esp. electric power and charcoal, which counts a big reason why they choose this place.”

Mr Vilar said that “The plant in Sichuan will become an advanced and most competitive one in silicon business, as it not only contains high technology, but also environmentally friendly.”

He added that till 2010, the world silicon output could reach 2 million tonnes, while China will be the biggest seller of this metal.

Atlantic Ferroalloy Company is the one of the world largest multinational in silicon production business with branches in four countries and 1.5 million tonnes annual capacity.

(Sourced from MySteel.net)

Eramet to spend EUR 370 million in CAPEX in 2007

It is reported that French base metal major Eramet would increase CAPEX by 23% YoY to EUR 370 million in 2007.

As per report, Eramet would spend EUR 170 million for nickel unit including expansion to annual 75,000 tonnes of capacity in New Caledonia. Its manganese unit would spend EUR 130 million for new electrolytic manganese dioxide plant in China and catalyst recycle plant in Canada.

SS production cut to ease nickel pressure in China

Shanghai Securities cited Chinese market insiders hinting that the 20% output cut announced by Chinese stainless mills earlier this month would enable Chinese producers to reduce heavy dependence on imported nickel as prices plummet.

Stainless steel trader said that "The stainless producers will cut production for sure, not like other times when they did not actually put the cuts into action. He said they have built up large stocks at their plants but transactions remain extremely sluggish with prices still falling."

Official from China's top producer Taiyuan Iron & Steel said "The market is quite weak right now. Even though we have announced a reduction in output together with some other measures such as promising to give subsidies to our dealers to ensure they hold on to normal business we cannot prevent smaller traders from selling off products." However, stainless producers conceded that their output cutback could put pressure on producers of ferro-chrome who are trying to increase prices.

An official from a stainless mill said "We don't intend to push down ferro chrome prices which are not as volatile and high as nickel. But as we cut stainless production use of ferro chrome will certainly decline as well." He said that stainless mills are trying to cut production as a tactic to keep third quarter ferrochrome prices down.

(Sourced from MySteel.net)

IUD purchases shares of Nigerian Jos Steel

The Ukrainian Chamber of Commerce informed that the Industrial Union of Dobas has purchased some shares of Jos Steel Rolling Company that produces 210,000 tonnes of rolled metals per year in Nigeria.

The Industrial Union of Donbas runs Alchevsk Metallurgic Plant, Dniprovsk Metallurgic Plant and Kramatorks Metallurgic Plant, Dniprovskyi Pipe Plant, Alchevsk Coke Chemical Plant, Dunaferr, Hungarian DAM Steel and Polish Huta Czestochowa.

Ms Chen seeks to take over Oriental Group

Bloomberg Cited Ms Chen Ningning the second biggest shareholder of China Oriental Group Company as saying that she wants to take control of the Chinese steelmaker because she's dissatisfied with the management. Ms Chen said that “We believe we can bring more value to Oriental and its shareholders given our expertise in the steel industry. Without a change of control, the company will not achieve its potential and the company's share price may continue to under perform.''

Ms Chen in a statement to Hong Kong's stock exchange said that her offer includes HKD 18 of cash and two exchangeable bonds for every 9 Oriental shares held by existing shareholders. The bonds, which mature in three years, have a face value of HKD 4.50 each paying 4.75% of interest a year.

Macquarie Bank Ltd is advising Ms Chen on the offer and Australia & New Zealand Banking Group Ltd, Natixis and Cooperatieve Centrale Raiffeisen-Boerenleenbank BA will give her a bridging loan of up to HKD 3.2 billion to fund her purchase. PMA Capital Management Ltd. will arrange an additional financing of as much as HKD 780 million.

Oriental makes billets and strips in China, producing more than 3 million tons of crude steel a year. It controls closely held Hebei Jinxi Iron & Steel Co.

Pakistan announces new sales tax policy for steel industry

Business Recorder reported that Pakistan’s Central Board of Revenue, In consultation with the relevant associations, has fixed the values of different steel products in rupees and US dollars for accurate assessment of sales tax at import & local supply stages and has issued special procedure for the payment of sales tax by steel makers, re rollers, ship breakers, Pakistan Steel Mills and Peoples Steel Mills.

Under the mechanism, the value of billets supplied by Pakistan Steel Mills and Peoples Steel Mills has been fixed at PKR 32,300 per tonne to assess sales tax imported billets, USD 500 per tonne for imported re rollable scrap, USD 400 per metric tonne for re rollable scrap supplied by ship breakers, PKR 24,000 per tonne and value of ingots and billets supplied by other steel makers has been fixed at PKR 27,335 per tonne for assessment of sales tax.

Every steel maker, steel re roller and composite unit of steel melting and re rolling shall pay sales tax at the rate of PKR 4.75 per unit of electricity consumed for the production of steel billets, ingots and mild steel products which will be considered as their final discharge of sales tax liability. The payment of tax shall be made through electricity bills along with electricity charges. In case of default in payment of sales tax by the due date mentioned on the electricity bill besides other legal action by the concerned sales tax office, the concerned electric supply company shall disconnect the electricity connection of the unit.

The ship breakers shall pay sales tax at the rate of PKR 3,500 per tonne of re rollable scrap supplied by them. The quantity of re rollable scrap shall constitute 70.5% of total LDT of the ship imported for breaking. The ship breakers shall clear their sales tax liabilities pertaining to ships weighing up to 10,000 LDT within four months, while in case of ships weighing more than 10,000 LDT within eight months from the date of filing of goods declaration. The sales tax liability shall be discharged by the ship breaker either on completion of clearance of goods obtained from breaking of vessel or within the maximum time period allowed as aforesaid, whichever is earlier.

To deal with the invoices and returns, sales tax invoices shall be issued in the following manner
1. By steel makers to re rollers - ST amount of PKR 4100 per tonne
2. By steel re rollers using ingots or billets of steel makers to downstream steel industry - ST amount of PKR 4717 per tonne
3. By Re-rollers using billets of Pakistan Steel Mills or imported billets to downstream industry – ST amount of PKR 5460 per tonne
4. By Re-rollers using billets of Pakistan Steel Mills or imported billets to buyers – ST amount of PKR 617 per tonne
5. Sales tax invoices in respect of supplies of billets shall be issued by Pakistan Steel Mills and People's Steel Mills showing sales tax amount of PKR 4845 per tonne
6. Persons supplying imported MS products shall issue invoices showing sales tax of PKR 5460 per tonne
7. Ship breakers shall issue invoices of re rollable scrap supplied by them showing sales tax of PKR 3600 per tonne
8. Melting scrap supplied by ship breakers shall be zero rated.

A monitoring committee comprising of officers of sales tax, representatives of concerned Associations and any other person as may be nominated by the Central Board of Revenue shall be constituted through a general order to monitor the collection of sales tax under these rules on monthly basis. The All Pakistan Steel Melters' Association and All Pakistan Steel Re-rollers' Association shall be responsible to ensure that the steel melters and re rollers pay sales tax in the manner specified in these rules and in case of non compliance, the association shall actively assist the concerned Collectorate for enforcement and recovery of sales tax due along with default surcharge calculated thereon, besides any other proceedings that may be initiated against the defaulting steel melter or steel re roller.

Flavius Invest declared winner of Tractorul Brasov auction

Romanian media reported that Bucharest based Flavius Invest has been declared the winner of the auction for Tractorul Brasov, at the starting price of EUR 91.6 million VAT included (EUR 77 million without VAT), offered also by another two firms from Iulius Group, because it was the first to register at the auction.

Mr Andrei Cionca representative of Casa de Insolventa Transilvania, the liquidator of Tractorul said that “Since it was the first which registered at the auction, the firm from Bucharest adjudicated the platform.”

The unit consists of 3 sectors namely the tractor manufacturing module evaluated at EUR 43 million without VAT together with the related energy utilities, the cast and forged parts module evaluated at EUR 14 million and independent assets with a total value of EUR 20 million.

Greens challenge causes Pike River to acknowledge environmental liabilities

New Zealand’s Green Party has expressed happiness that its challenge last week to Pike River Coal Company has now caused the mining company to advise the stock exchange and potential investors about how they propose to address their Kyoto liabilities for methane emissions.

Ms Jeanette Fitzsimons leader of Green Party said that "It is welcome news that Pike River has started to take fuller responsibility to inform potential shareholders about how it intends to address the climate change implications of its mine proposal. However, Pike is still claiming a figure for methane release that is one sixth of what the Intergovernmental Panel on Climate Change calculates and if there are circumstances so special that make their emissions so low Pike River should now be willing to release their calculations to independent scrutiny.”

She said "The Green Party welcomes the fact that Pike River has effectively accepted Green Party criticism that their prior disclosures to potential shareholders were inadequate.

Ms Fitzsimons said "Now that Pike River has begun to address the concerns the Greens have raised about the project’s potential level of methane emissions and have indicated they accept liability for them we trust they will now be more forthcoming about the measurements, assumptions and extrapolations they are using. She said that the Greens would welcome the hard evidence for Pike River's claims that this mine can limit its methane emissions to the very low levels that it suggests."

During September 2005 the board of Pike River Coal Limited made the formal decision to proceed with the mine development. New Zealand Oil & Gas joined forces with Indian coking coal company Saurashtra Fuels Private Limited to fund development of the Pike River coking coal mine. In June 2006 Gujarat NRE Coke Limited extended its Australasian presence with the purchase of a NZD 20 million shareholding in PRCL. First commercial production of high quality coking coal from the Pike River mine on the West Coast of the South Island is scheduled for the March 2008 quarter, with production then building to over 1 million tonnes per annum. Coal will be trucked from the mine to Greymouth port and shipped by two purpose built coastal ships to Port Taranaki. From Port Taranaki coal will be shipped in Panamax size vessels carrying loads of up to 65,000 tonnes to export markets in Asia, India, South America and Europe.

Ukrainian steel industry expanding overseas to remain competitive

Kyiv Post recently reported that although Ukraine’s steel industry looks likely to continue benefiting from the overall positive business environment enjoyed in Europe over the past three or four years but the long term success of Ukrainian steel companies remains vulnerable to local conditions. Kyiv Post said that to improve their standing among rating agencies and competitors, Ukrainian steel companies are trying to integrate production and expand operations abroad.

In its recently released Industry Outlook on the steel sector, international rating agency Moody’s Investors Service said that Ukraine, as well its neighbors, such as Poland and Russia, will experience a particular rise in steel consumption due to these countries’ efforts to catch up in the development of their own infrastructures. Mr Matthias Hellstern VP & senior credit officer of Moody said that “Demand for steel globally is set to remain solid throughout 2007 and into 2008 given forecasts for GDP growth. This is also true for Europe and, in particular, Eastern Europe.”

But Ukrainian and Russian steel companies are still at a potential disadvantage because of their countries’ unpredictable legislation and fiscal policies. Smaller steel players in the former Soviet republics will have to expand their access to neighboring markets to hold their own with global giants, which can more easily absorb threats, like the rising cost of raw materials. The Moody’s report notes that steel companies in Russia and Ukraine are already contemplating cross border mergers that would enable them to compete internationally.”

Mr Eugene Cherviachenko a metals and mining analyst at Kyiv based investment bank Concorde Capital said that “The need for Ukrainian steel companies to merge is greater than in Russia, because Ukrainian companies are still undergoing integration. Some Ukrainian steel companies control mills, but not enough ore needed to run them, while others are in the opposite situation. At the same time, both Ukrainian and Russian steel companies need to expand abroad to minimize the effects of duties and quotas on foreign sales. Ukraine is an exporting country, so the more facilities it controls abroad the better.”

Feng Hsin to expand production capacity

Taiwan’s Feng Hsin Iron and Steel Company announced that it planning to expand its production capacity. The projects consist of 3 main facility reconstructions with total investment of TWD 5.5 billion.

Feng Hsin Iron and Steel Company said that it would renew its old furnace meanwhile it also will rebuild its rebar production line with three phrases. It is estimated the annual capacity at the company will add by 5,500 tonnes when the construction is completed.

Feng Hsin Iron & Steel Company Limited principal activities are the manufacturing, processing and trading all kinds of angle bar, carbon steel, and other metal and steel products. Its products include equal angle steel, channel steel, square steel, flat steel, special bar, round bar, flat bar, square bar and concrete reinforcement bar. It exports its products in Asia and in other countries.

Alabama Q1 underground coal production dip by 11% YoY

It is reported that underground coal production in Alabama region of US has fallen by 11% YoY in the January to March 2007 period on dramatically lower volume by Drummond Company's Shoal Creek mine.

According to the department of industrial relations, Alabama's 8 underground coalmines produced 2.9 million tons in January, February and March 2007, which is down from 3.3 million tons a year earlier.

The big drop off was at Shoal Creek, in west Jefferson County. It was shut in January 2007 and most of February 2007 as Drummond pondered its future after an explosion and flood in February 2006. The mine produced 150,318 tons from 526,000 a year earlier.

The most productive underground mine was Jim Walter No 7 with 882,500 tons. Among the 51 surface mines, the top dog was Twin Pines No 2. The Cullman County operation produced 284,629 tons and surface production has risen by 21% YoY to 2.2 million tons.

Hainan ink framework agreement for regrouping

Hainan Steel has signed a framework agreement for regrouping, which says a large scale private owned firm group would join in the project. Hainan Steel has been an old state owned enterprise of half a century with exclusive mining right for Asia's largest rich ore. Its partner taking part in the regrouping project is one of the largest domestic private groups owning four competitive industries. The regrouping is combining private capital with state owned assets essentially.

Mr Liu Minggui GM of Hainan Steel said that as an independent mining company, Hainan Steel is faced with problems like simplex products and non flexible mechanism. The company's profits are heavily relied on iron ore price.

In 2006, Hainan’s CNY 200 million involved 1.1 million tonnes per year ore dressing plant was completed, that include the cobalt and copper smelting item received trial production and further tied with other companies in building of zirconium titanium deep processing mill with CNY 1.5 billion investment. Moreover, it plans to plunge CNY 300 million to CNY 400 million into underground mining of the iron ore, which is slated to start work from 2009 and realize 2 million tonne crude ore output annually once put into operation.

Meanwhile, it stepped up negotiation with the domestic companies about regrouping, intending to separate the core business and the supplementary businesses and reform the latter. It's expected that the regrouping will lead to a mixed ownership mining enterprise that would develop an integrated production flow from ore mining deep processing to steel making, and another line focused on non ferrous minerals' exploitation.

(Sourced from MySteel.net)

Unimech to set up JV for SS valves in china

It is reported that Malaysian Unimech Group Bhd is setting up a JV in Cangzhou China to produce stainless steel valves in the third quarter of 2007. Unimech would hold 51% stake in the partnership.

Mr Datuk Lim Cheah Chooi executive chairman of Unimech Group said. That “Our partner is a local Chinese company specializing in the manufacture of valves used in the petrochemical and food industries and we will invest in a plant costing about MYR 4 million.

Mr Lim said the new investment is to cater to new orders from the group's existing customers in Malaysia, China, Singapore, Indonesia, Thailand, Australia, South Korea and the Philippines. He added that “Presently our export sales contribute 35% to 40% of revenue and plan to raise this to 50% by next year and will also be on the lookout for potential business partners and businesses abroad to acquire.”

Mr Lim further added that the group planned to increase the revenue contribution from oil and gas valves to 15% from 5% presently and was optimistic of achieving double-digit growth in profit for the financial year ending Dec 31st 2007. He said that “We are confident as our pre tax profit for the first quarter registered a 19.9% improvement over that in the previous corresponding quarter.''

Breakwater announces production restarts at Langlois

Breakwater Resources Limited recently announced that the Langlois mine located in northwestern Québec region of Canada is now in commercial production.

Earlier on November 8th 2005, Breakwater announced that it would develop the mine and it was expected that the necessary development work would take 15 months with full commercial production achieved by mid-2007. Development has progressed as expected and commercial production was achieved on July 1st 2007.

Breakwater is a mining, exploration and development company, which produces and sells zinc, copper, lead and gold concentrates to customers around the world. The Company's concentrate production is derived from four mines. Two of Breakwater's mines are located in Canada, one is located in Chile and one is located in Honduras.

Belarussian steel market to grow by 10% annually

Interfax reported that Belarussian metals market would grow by at least 10% per year.

Mr Sergei Lukomsky head of the Belarussian office of Ukraine's Donetsk Steel Plant told Interfax that "The metals market in Belarus will grow along with the country's gross domestic product. Considering the development of the industrial sector and rapid growth of construction, the growth will be at least 10% per year and maybe more."

Mr Sergi said that “Metal prices on the Belarussian market will continue to climb in 2007. Prices will increase for all metallurgical products. In 2006, prices rose by an average of 25% compared to 2005, and this year they are expected to increase by another 5%."

Mr Lukomsky added that “Prices have stopped climbing for the time being. While before prices rose by 2% to 3% per month, now the situation has stabilized, but this is a seasonal fluctuation."

South Korea to invest in Laos for resources development

It is reported that South Korea and Laos plan to expand cooperation in developing iron ore and tin deposits. The signing of an accord in this regard is expected soon when Mr Kim Young Ju commerce and industry minister of South Korea will visit Laos.

The report cited an official of ministry of commerce, industry & energy of South Korea as saying that said Seoul and Vientiane would sign an energy resources pact and set up a joint cooperation committee to coordinate future exploration and mining.

Authorities added that talks would be conducted about permitting South Korean companies to begin the full fledged mining of iron ore and tin in Laos.

Global coal boom not enough to reopen pits in UK

Reuter reported that booming world coal market and high prices alone will not be enough to re open Britain’s dormant pits while future prices and government policy remain uncertain although coal demand is on a high almost everywhere outside of Western Europe driven by the power generation and cement producing industries.

Mr David Price coal analyst and editor of McCloskey’s Coal UK magazine said that “For coal mining everywhere except the UK and Germany looks positive. If UK producers could be sure that coal prices would remain at a high level for at least a decade then they could think about expanding production.”

Mr David Brewer director general of confederation of UK Coal Producers said “We’ll see growth in output over the next few years because we’ve had some successes with gaining planning permission for opencast mining recently.”

Mr Tom Allchurch CEO of opencast miner ATH Resources Ltd, Britain’s third largest coal producer, said that “For opencasters the issue is development control environmental restrictions to opening new pits. He said the issue for the deep mine underground operators is the difficulty in deciding on long term investments because government policy on the role coal will play in future generation seems unclear.”

Mining and utility sources said that UK’s coal demand is far higher than anticipated 10 years ago but it would never recover even to the pre privatization levels of the 1980s. Analysts said Coal demand in the UK reached an historical high of about 58 million tonnes in 2006 of which domestic production accounted for about 17 million tonnes.

Northwest Pipe appoints Mr Mahoney as VP of Tubular Products Group

Portland based Northwest Pipe Company announced the appointment of Mr Robert L Mahoney as the new senior VP in charge of its Tubular Products Group.

Mr Mahoney joined Northwest Pipe Company in 1992 as a marketing analyst and went on to spend several years with the sales department in Southern California. He was promoted to Director of Business Planning and Development in 1996. In 1998 he was appointed vice president of corporate development and became the VP & chief strategic officer in May of 2005.

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

Rox Resources commences drilling at zinc lead project in Laos

Rox Resources Limited advised that diamond core drilling to test several previously announced large IP targets at the Bon Noi and Nam Yen prospects at the Pha Luang zinc and lead project in Laos has commenced.

As per report Rox has defined three large IP targets that sit below extensive high grade soil anomalies at Bon Noi, and two large IP targets at Nam Yen.

An RC rig has now completed the pre-collars for each hole to 160 meters depth and has been demobilized. The diamond core drilling rig arrived on site last week and after setup commenced coring on 26 June 2007 A 6 hole drilling program for approximately 2,200 meters is planned, weather dependent, with each hole taking about 2 weeks to complete and assays another 4 weeks to 5 weeks thereafter.