September, 25 2007
POSCO likely to get Khandadhar mines – Mr Reddy
Mr T Subbarami Reddy union minister of state for mines said that POSCO, which proposes to set up a 12 million tonne per annum Greenfield project at Paradeep in Orissa, will not face problem in getting the prospecting licence for Khandadhar mines. Mr Reddy said that “The legal process is going on and there is no problem in granting the prospecting license to POSCO. However, Orissa government will have to co ordinate and pursue the issue.”
The Orissa government had already recommended to the centre for grant prospecting licence to POSCO over an area of 6204 hectares at Khandadhar in Sundargarh district. However, the centre has sent the proposal back to the state asking it to hear the applications of other claimants of mining lease for the same area before deciding on POSCO application. Though the mines and minerals development and regulation Act 1957 requires the state government to hear all applications before making recommendation for the grant of prospective license. Orissa government favored POSCO on the ground that it was the largest foreign direct investment.
Kudremukh Iron Ore Company Limited had filed a petition in the Orissa High Court against the state government's recommendation for grant of prospecting license to POSCO for the Khandadhar iron ore mines. It argued that the state government had earlier committed the area to the company and the company had invested about INR 2 crore on the prospecting work done by the directorate of geology, government of Orissa.
Praxair to build ASU for JSW Steel at Vijaynagar plant
PTI reported that JSW Steel has chosen gas producer Praxair India to build a 1,800 tonnes per day air separation unit at its Vijaynagar plant to meet its industrial gas requirements from 6 million tonnes to 10 million tonnes by 2010.
As part of this agreement Praxair will build a state of the art 1,800 tonnes per day air separation plant, which will be equipped with advanced controls and energy efficient process cycles. Praxair will also install significant storage capacity for liquid oxygen, liquid nitrogen and liquid argon primarily to meet JSW's back up requirements and in order to supply merchant liquids to the southern region.
The release quoted Mr Seshagiri Rao director finance of JSW as saying that "JSW is happy to select Praxair as its partner for meeting part of its industrial gases requirement for its expansion plans.”
Rathi Graphic to acquire Rathi Rajasthan Steel
It is reported that the board of directors of Rathi Graphic Technologies, at its meeting held on September 24th 2007 decided to acquire 100% equity stake in Rathi Rajasthan Steel Mills. With this acquisition the company will enter into steel business.
India assures South Korea on expediting clearances for POSCO
It is reported that India has assured South Korean government at clearances for POSCO’s proposed steel project in Orissa would be expedited. Mr Pranab Mukherjee India’s external affairs minister gave these assurances during his recent visit to Seoul to his South Korean counterpart Mr Song Min soon.
Mr Mukherjee is understood to have taken up the matter with Dr Manmohan Singh prime minister of India stressing the need for expediting all clearances required to start the project in Orissa. PMO, which has been monitoring the progress of the project, has asked Orissa government to resolve various issues expeditiously.
ArcelorMittal asks for 10 iron ore blocks in Jharkhand
BL reported that ArcelorMittal Group has once again filed an application for grant of 10 free blocks of iron ore in Ghutkuri mines in West Singhbhum district with a reserve of over 600 million tonne to kick start work on its proposed 12 million tonne capacity Greenfield steel project in Jharkhand.
Recently, a 3 member delegation led by Mr MP Singh MD of ArcelorMittal met Mr Sudhir Mahto deputy chief minister and in charge of industries department of Jharkhand.
As per report, Jharkhand government may also Ankua mines in West Singhbhum district to the ArcelorMittal as the Chiria mine dispute is pending in the Jharkhand High Court and as such PMO office has asked the state to clear it for Steel Authority of India Limited.
Though state government had not yet finalised the location of its proposed steel project, ArcelorMittal was reportedly examining 3 short listed sites and is waiting for the announcement of the state’s resettlement and rehabilitation policy. ArcelorMittal had sought nearly 7,000 acre of land for setting up the integrated steel plant and township.
ArcelorMittal had signed a MoU with the Jharkhand government in October 2005, promising investment of INR 40,000 crore for its Greenfield steel project in Jharkhand.
Kalinga Iron workers agitate and cease work
SNS reported that, after the contract laborers of the Orissa Sponge Iron Limited Palaspanga, it is now the turn of Kalinga Iron Works laborers, at Matkambeda to agitate and cease work with a 16 points charter of demands.
Mr UK Mahanta Matkambeda district labour officer has been there holding discussions with both the parties in order to end the impasse. He hoped the stalemate would end soon for the company, which has already agreed upon 9 out of 16 demands of the workers. The last one, which is under consideration, is about the demand for a wage hike.
Sources said that the agitators are not allowing the factory’s vehicles including the school buses to go out of the factory’s gate. They even damaged the vehicle of security officers.
CIL may import coal to bridge the demand gap
PTI reported that Coal India Limited is contemplating import of thermal coal to meet the production demand gap for the domestic market. A top CIL source told PTI that import of coal would be a reality in the near future for the first time by CIL as the central government was backing the move for several reasons.
The report cited the official as saying that "Centre will allow CIL to import coal after it announces the new coal sale policy expected this week."
The official said that "Our import would be around 10 million tonne to 15 million tonne. The total shortfall in supply is about 30 million tonne to 35 million tonne and coking coal is 20 million tonne. The new coal sale policy will put additional responsibility on CIL to meet the demand. And, we can only put more coal up for sale than production by import in the short run as the coal production enhancement program would take some time to bear fruit."
CIL is also planning coal block acquisition or a stake in the overseas market as a long term solution to meet demand. It has already sent a proposal to the government for empowerment to take decisions upto a certain limit.
Power equipment manufacturing norms to be relaxed
It is reported that Indian government is likely to relax pre qualification norms to facilitate the entry of new players into power equipment manufacturing. This has become necessary in the wake of huge capacity addition program of over 78,500 MW during 11th Plan, with limited supply of equipment.
As per the proposed changes, the companies interested in setting up equipment manufacturing facilities in the country may not be required to meet the condition of having prior experience of delivering equipment for which it is interested to put up the facility. Such companies may be allowed to put up manufacturing facilities, even if they have a global experience of supplying similar kind of equipment.
Moreover, an Indian company partnering with an international company with experience could also set up manufacturing facility in the country on the back of this support or vice versa.
Union government is also considering modifications in the tendering process where bids for equipment supplies may be given to companies interested in setting up a domestic manufacturing facility. The changes would be included in new pre qualification norms for companies interested in equipment manufacturing being finalised by the central electricity authority.
Once implemented, it is expected to give a boost to manufacturing that is currently largely dominated by public sector BHEL. Union power ministry feels that the sole equipment supplier BHEL may once again fail to supply equipment for 58,600 MW of thermal capacity to be added in the 11th Plan. As per the ministry’s estimates, BHEL could only supply 30,000 MW of equipment with the rest dependant on imports or growth of second equipment manufacturer.
POSCO to start work on Paradip Port project by early 2008
It is reported that construction work on POSCO India's captive port project at Paradip in Jagatsingpur district of Orissa is likely to begin by early 2008. Preparatory work of the project which include raising of boundary walls and similar other structures is likely to start by October 2007.
However, it is learnt that though POSCO was yet to be handed over a single piece of land out of the 4,004 acre required for the project near Paradip, the demarcation of 193 acres of land is likely to take place by end September 2007.
Adhunik Metaliks to acquire major stakes in V Cube Forge India
Adhunik Metaliks Limited has announced that its board of directors, at its meeting held on September 21st 2007, has approved acquisition of majority stake holding in V Cube Forge India Ltd.
HZL to commission new zinc smelter at Chaneriya soon
Mr KK Kaura chairman & CEO of Vedanta Resources, while addressing the 40th annual general meeting, said that Hindustan Zinc’s second 170,000 tonnes per annum smelter at Chanderiya in Rajasthan is being constructed at full swing and may be commissioned ahead of schedule.
An 88,000 tonnes per annum zinc de bottlenecking plant and 80 MW captive power plants are on course for timely completion. The wind energy projects in Karnataka, Gujarat and Maharashtra totaling 110.4 MW, are progressing according to schedule. After completion of these projects, Hindustan Zinc will have a total wind power capacity of 148.8 MW.
Mr Kaura said that “Exploration has always been an integral part of Hindustan Zinc’s mining strategy. During the last couple of years, the emphasis on exploration has increased in the light of the company’s aggressive growth plans.”
He added that with the robust growth in consumption, Hindustan Zinc has a stable outlook on demand and prices. He said “The buoyant GDP growth and encouraging industrial production growth are expected to accelerate the domestic per capita metal consumption. The higher volume from expansion projects would help the company to deliver superior performance in the future.”
HZL is India’s leading zinc producer and a part of Vedanta Resources, a London listed metals and mining maker. During 2006-07, Hindustan Zinc increased its reserves and resources by 32 million tonnes, an increase of 18% YoY over the previous year net of depletion. The total reserves and resources stand at 209.4 million tonnes as on March 31st 2007.
CSEB invokes bank security of Chinese firm due to non start of Korba project
BS reported that Chhattisgarh State Electricity Board has decided to invoke the INR 36 crore bank guarantee of the China National Machinery and Equipment Import & Export Company for failing to start construction work on the 600 MW thermal power plants in Korba district. The Korba thermal project has already been delayed by 2 years.
Rejecting a request by China National Machinery and Equipment Import & Export Company for a 2 months extension, Chhattisgarh State Electricity Board wrote to the Beijing branch of the Bank of China last week asking it to remit the security amount to the board’s banker, the State Bank of India.
Mr Rajib Ranjan chairman of Chhattisgarh State Electricity Board said that “Despite receiving the letter of intent, the company did not show any interest in starting the work on the basis of the low rate it had quoted, citing an increase in steel prices and other factors.”
China National Machinery and Equipment Import & Export Company, which had built a power plant in Korba for Vedanta owned Bharat Aluminium Company Ltd, bagged the project 2 months ago. It outbid public sector engineering major Bharat Heavy Electricals Ltd, quoting the lowest rate of INR 3.61 crore per MW for the two 300 MW plants.
IPI gas pipeline talks to resume soon
Mr Hojjatollah Ghanimifard, a special envoy at Iran’s oil ministry recently said that a new round of talks on the Iran Pakistan India gas pipeline project would resume soon. Mr Hojjatollah said the 3 countries would soon be launching a new round of talks on the construction of the huge pipeline project to carry Iran’s natural gas to India via Pakistan. He added that "Negotiations on the completion of the gas pipeline project will be held in Tehran soon."
He said that Iranian and Pakistani experts would exchange views on the contract from September 24th 2007 to September 26th 2007 and officials from the 2 sides would discuss the issue on September 27th 2007.
Iran, meanwhile, on Saturday expressed impatience with India over the finalizing of the gas pipeline deal via Pakistan, warning that it could go ahead with Pakistan alone if India procrastinated. Mr Gholam Hussein Nozari Iran’s caretaker oil minister said that New Delhi and Islamabad were still in discussion over the payment of transit fees for Iranian gas. He said Pakistani officials were certain to come to Iran next week for talks to finalize the project but the attendance of Indian representatives was still unconfirmed
Larji hydel power project inaugurated in HP
It is reported that Mr Virbhadra Singh chief minister of Himachal Pradesh has inaugurated the 3 turbines of Larji hydel power project in Mandi district of the state.
The trial run of the proposed project was underway since early 2007. The project was to be completed in March 2003 but has taken 4 more years to complete, with an estimated INR 1,027 crore in completion cost, which is almost double the earlier estimate.
Hindustan Construction JV bags DMRC contract
Hindustan Construction Company Limited announced that along with Alpine Samsung HCC JV, Alpine Mayreder Bau GMBH, Samsung Corporation it has been awarded a contract for design and construction of two underground stations and tunnel between New Delhi Station and Talkatora Garden from Delhi Metro Rail Corporation Lid.
The value of the contract is INR 693.61 crore. The total value of the contract in INR is 774.64 crore. Hindustan Construction's share in the total value of the contract is 33% or INR 255.63 crore.
Sims to Buy Metal Management
US metal recycler Metal Management Inc announced that it has agreed to be acquired by Australia's Sims Group Ltd for USD 1.5 billion in stock. Under the agreement, Metal Management shareholders will receive 2.05 Sims American depositary shares for each of their shares. The companies said the deal represents a premium of 18.2% to Friday's closing price of USD 48.86 for Metal Management shares.
Upon closing of the transaction, expected to occur in next year's first quarter, Sims shareholders will own about 70% of the combined company and Metal Management shareholders about 30%.
The transaction creates the world's largest publicly traded recycler, annually processing and trading more than 15 million tonnes of metal per year. The combined company to be called Sims Metal Management will be based in Australia. It is expected to achieve approximately USD 35 million of cost savings for the 12 months ending June 30th 2009. The combined company had pro forma revenue in excess of USD 6.8 billion for the 12 months ended June 30. It will have more than 200 operating sites on four continents, including facilities in 19 US states. It added that Metal Management complements Sims's international profile and significantly enhances Sims's position in the US.
Mr Daniel W Dienst chairman & CEO of Metal Management said that "Bringing Sims and Metal Management together accelerates both companies' strategic plans and creates a clear global leader with unparalleled infrastructure, talent and financial resources."
China cuts licensed iron ore importers by 6
China Iron & Steel Association and China Chamber of Commerce for Metals and Chemicals Importers and Exporters after a recently meeting held in Beijing announced that the number of qualified iron ore importers have been cut from 118, comprising of 70 mills and 48 traders, to 112.
The approved list was decided at the same meeting in Beijing between CISA and the CCCMC at which details of the new system for tracking China's iron ore import contracts and sales were discussed. Industry analysts believe the move is aimed at reining in iron ore wastage as well as curbing speculative sales from port and mill stocks.
A well informed source reveals that two new mills have been added including Ganglu Iron & Steel a plate mill located in northern China's Hebei province and Ruifeng Steel a mill producing hot strip also in Hebei.
The bottom line for obtaining the import license is minimum import volume of 700,000 tonnes in 2005.
(Sourced from MySteel.net)
Gindalbie and Sundance to merge
Perth headquartered iron ore companies Gindalbie Metals Ltd and Sundance Resources Limited announced that they have reached agreement to merge to create a substantial AUD 4 billion international iron ore company. The companies have executed a Merger Implementation Agreement to effect the merger by way of a Scheme of Arrangement under which Gindalbie will make offers to acquire all of the issued securities in Sundance.
The proposed merger will result in the establishment of a major independent Australia based iron ore company with a diversified asset base comprising of iron ore projects in Western Australia and West Africa, a very significant production growth profile and a global presence.
Under the terms of the proposed Scheme of Arrangement, Sundance shareholders will receive one Gindalbie share for every two of Sundance shares. Based on the closing price of Gindalbie shares on September 21st 2007 of AUD 1.70, the offer values Sundance at approximately AUD 1.6 billion and represents a premium of 14.9% on the closing price of Sundance shares on September 21st 2007 of 74 cents, and a 34.5% premium to the 30 day volume weighted average price of Sundance shares.
On completion of the merger, the new entity would have approximately 1.43 billion shares on issue with an estimated market capitalization of approximately AUD 4 billion based on the closing price of Gindalbie shares on September 21st 2007 of AUD 1.70. Gindalbie securityholders would hold approximately 35% and Sundance securityholders approximately 65% of the merged company. After careful consideration of the possible structures, an offer by Gindalbie for all of Sundance’s issued securities by way of a Scheme was determined to be the most beneficial to securityholders of both companies.
Mr George Jones chairman and a shareholder of Gindalbie and Sundance have also expressed his full support for the transaction. He said that "The proposed merger provides both groups of securityholders with the opportunity to participate in the creation of a new international mining house with a pipeline of worldclass projects.”
Mr Garret Dixon said MD of Gindalbie said that "Gindalbie's world class Karara magnetite project in WA, for which we recently signed a joint venture development agreement, complements the large scale Mbalam hematite project being explored and developed by Sundance in Cameroon."
China to put further restrictions on export of ferroalloy
It is reported that China may go on raising export tariffs or take other restrictive measures such as export license and export quota to curb ferroalloys exports, since the export tariffs increase on ferrosilicon and ferrochrome since June 1st 2007 have not given desired results.
Mr Zhang Zengchan president assistant of China Ferroalloy Industry Association during the 2nd China Steel Raw Materials & Fuels Summit on September 20th 2007 said that “International demand and rising prices are to blame for surging exports. Ferroalloys prices have climbed from the latter of last year until this June. Transaction price for Chinese ferrosilicon in Japan jumped to USD1050 per tonne in June 2007 from USD810 per tonne in December 2006. However, imports and exports of manganese ore, chrome ore and ferroalloys will be curbed by macro control and some uncertain factors."
Mr Zhang forecasted that increase of ferroalloys imports and exports in the fourth quarter would drop dramatically and exports may even experience a negative growth. He said that “As differential power rate is implemented across the country, ferroalloy output in the following months is expected to fall notably. This is helpful to balance domestic supply and demand and to some extent curb ferroalloy exports.”
(Sourced from MySteel.net)
Interros sells 30.4% stake in Power Machines
Interros announced that it has closed a deal to sell a 30.4% stake in heavy machinery manufacturer Power Machines to Cyprus based Highstat Limited, which is controlled by Mr Alexei Mordashov CEO of Severstal. It did not specify the size of the deal by only saying it was based on the current Power Machines share price. However as per market sources the deal is estimated at USD 470 million to USD 515 million.
Last week Siemens, which holds a 25% stake in Power Machines, relinquished its pre emptive right to buy Interros' stake after the Federal Anti Monopoly Service ruled out a sale to the German firm. A 2005 bid by Siemens was rejected on national security grounds, as Power Machines provides turbines to the defense industry. However In late August, the Anti Monopoly Service allowed Highstat Ltd to buy up to 100% in Power Machines.
UES holds a 25% stake in Power Machines and is expected to hold an auction for the stake later this year.
Power Machines accounts for 37% of Russia's turbines, turbo generators, hydro generators and electrical equipment market. Power Machines provides engineering services, and produces, assembles, services and modernizes equipment for hydro, thermal, gas and nuclear power plants and the transportation industry. It has clients in 87 countries.
Chinese long product makers warned of slowdown in US
XFN ASIA cited the deputy director of China's Ministry of Construction as saying that China's steelmakers, especially those making long products for use in the construction sector, need to be wary of any over reliance on export markets as North American economies are expected to slow.
Mr Wang Juelin at a steel industry conference in Beijing said that “The North American economy and especially the construction market is likely to slow down. As a result importers of long products in the US would reduce their orders for Chinese output. Therefore Chinese steel output should meet the needs of domestic developers.”
5 killed in furnace explosion at Devic Steel in Kenya
AFP reported that at least five people were killed and several others injured when an explosion occurred at Devic Steel Mills Limited in an industrial town outside the Kenyan capital.
Mr John Litunda district commissioner of Machakos said that the blast occurred at about 9:30 PM on Monday at Devic Steel Mills Limited in Athi River township, about 40 kilometers southeast of Nairobi. He said that "The explosion occurred at a furnace where workers were loading scrap metal. Five people died on the spot as a result of the explosion."
He added that “9 other workers who sustained serious injuries. Fire engines from the Machakos County Council and the Kenyan army were struggling to put out the fire that had spread throughout the entire factory. An investigation into the cause of the blast is underway.”
A factory worker said that "We had just loaded scrap metal into the furnace, which was about to reach the extreme melting point then suddenly we heard a very loud bang which was followed by a huge fire and smoke. I cannot remember what followed next, but I am lucky be alive."
Mr Narendra Rava factory manager of Devic Steel Mills Limited speculated that the blast was caused by artillery shells that were mistakenly included among the scrap metal that was being loaded into the furnace. He added that "The explosion might have been caused by dead bomb shells that were among the scraps and went off when exposed to extreme heat."
Northwest Pipe secures USD 10 million pipe supply order
Northwest Pipe Company announced that it has been named as pipe supplier by SJ Louis Construction of Waite Park of Minnesota for the Folsom South Canal Clay Station to Jack Tone Road Pipeline for the East Bay Municipal Utility District near Sacramento in California.
Northwest Pipe will supply approximately 33,000 feet of steel pipe valued at approximately USD 10 million for an engineered and custom fabricated piping system. The pipe is expected to be manufactured in its facilities at Adelanto in California and Portland in Oregon. The delivery scheduled to begin in the first quarter of 2008.
Northwest Pipe Company manufactures welded steel pipe and other products 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. It is headquartered in Portland, Oregon and has ten manufacturing facilities across the United States and Mexico.
Investigation launched in blast at Corus Port Talbot BF No 4
It is reported that an investigation is underway after an explosion at BF No 4 at Corus steelworks in Port Talbot at around 8AM on Friday morning. However no one was hurt in the blast. The furnace is expected to be out of action for several days.
The Corus spokesman said that "There was an explosion, but there were no injuries whatsoever. It was an operational setback and handled very carefully and sensibly. In a place such as a blast furnace you have extremely high temperatures and extremely high pressure."
Experts from Corus and the Health and Safety Executive will now investigate the incident.
Severstal buys 26.6% in Celtic Resources
It is reported that Severstal has raised its stake in London listed miner Celtic Resources to 26.6% from 22% by paying GBP 6 million (USD 12.2 million) for the additional shares. Severstal had bought the original 22% stake in Celtic Resources last month.
Severstal in a regulatory statement said that Bluecone paid GBP 2.32 per share for 2.59 million shares in Celtic. It now controls 14.87 million shares in the company.
A spokesman for Severstal Resurs, which controls the firm's mining assets, said that Severstal subsidiary Bluecone Ltd acquired the stock. However Mr Sergei Loktionov a spokesman of Severstal Resurs declined to comment on whether Severstal would make a full takeover bid by saying the company does not disclose its acquisition plans.
Celtic Resources, incorporated in Ireland, operates the Suzdal and Zherek gold mines in eastern Kazakhstan. It has a 50% stake in the Shorskoye molybdenum mine in Kazakhstan and a copper and gold project in Russia's Chelyabinsk region.
China Nickel to invest USD 450 million in Indonesian steel project
XFN ASIA repored that China Nickel Resources Holdings Co Ltd will invest USD 450 million in a steel plant in Indonesia.
The reported quoted an Indonesian government official as saying that the project will have annual capacity of 1 million tonnes and will be located in the Indonesian province of Kalimantan.
The South China Morning Post had reported earlier this month that China Nickel would invest in iron and steel projects in Indonesia with combined investment for the two projects at around CNY 2 billion or around USD 267 million at current exchange rates.
Teck Cominco increases stake in Fording Canadian Coal Trust
Vancouver based Teck Cominco Ltd is scooping up the Ontario Teachers' Pension Plan's stake in the Fording Canadian Coal Trust for CAD 599.4 million. Teck said that it is paying CAD 36 per unit to a Teachers division for 16.65 million Fording units, representing 11.25% of the trust.
By adding the Teachers stake to its own holdings, Teck Cominco becomes Fording's largest unit holder with 19.95% of the units outstanding.
Teck Cominco said it bought the additional trust units for investment purposes and has no plans to acquire any additional units of Fording.
Fording Canadian Coal Trust owns 60% of the Elk Valley Coal Partnership and Teck owns the other 40% and manages the partnership's five mines in southeastern British Columbia and one in West Central Alberta.
Teck Cominco is a major producer of coal and zinc, a metal used by manufacturers for a number of industrial products including galvanized steel. Teck has also been diversifying into other resources.
Tezcan to build a 400.000 tonnes HDG line
It is reported that Danieli Wean United will supply to Turkish Tezcan Galvanizli Yapi Elemanlari Sanayi Ve Ticaret AS a 400,000 tonnes per year hot dip galvanizing line. Commissioning is scheduled for 2008.
Strip thickness and width will range from 0.25 mm to 3.0 mm and from 800 mm to 1,300 mm respectively. The line will run at a process speed up to 200 meters per minute. The line entry is designed to process coils over 30 tonnes and the exit is configured to produce coils down to 5 tonnes minimum size.
The new HDG line will process ssteel to serve the automotive industry, high end construction, architectural markets and appliance markets.
Safer steel developed for auto bumpers and doors
It is reported that the Max Planck Institute for Iron Research and the German Steel Institute have developed a variety of steel that strengthens as it elongates. In the event of a car crash, the steel is ductile enough to absorb impact energy but remains strong enough to protect occupants. The institute mentions using the steel in bumpers and side doors, the most vulnerable areas in a crash.
As per report Called Twinning Induced Plasticity steel, the secret is that the steel passes the deformation energy down its length and to other parts, which also deform. The benefit is that with more area available to share the impact load, there is less that can reach the car's occupants.
Improved passenger safety is always good. Yet with more structures to incline to deform, such a development would also seem to need new inspection techniques after a crash to make sure everything is still safe. Also, while the fracture point of the pictured steel is listed as 1,250 percent of elongation, it would need to be established how much elongation before fracture was still safe.
Coalmine fire kills 3 and traps 15 in Shanxi Province
It is reported that 3 miners are dead and 15 are missing as rescuers try to extinguish a 5 day old colliery fire at the Huquangou coalmine in Zuoyun County of Shanxi Province in north China.
Xinhua reported that 36 miners were working in the shaft when an underground cable caught fire late Wednesday night and 18 miners escaped the fire. Rescuers found three bodies in the shaft on Thursday morning while 15 remain trapped underground.
Rescuers tried to enter the pit, but heavy smoke lowered their visibility, forcing them to retreat. They are now trying to determine other ways to extinguish the blaze. It is not clear whether the trapped miners are still alive, while the fire has not been extinguished.
Huquangou is a fully licensed coalmine, which produces between 600,000 and 700,000 tonnes of coal yearly.
WorleyParsons wins contract for trans Emirates oil pipeline
It was recently reported that Australia’s WorleyParsons has won the front end engineering and design contract on the trans emirates oil pipeline, running from Habshan in Abu Dhabi to Fujairah planned by Abu Dhabi government owned International Petroleum Investment Company.
WorleyParsons bagged the contract after beating four other bidders JP Kenny a part of the UK’s Wood Group, the UK’s Mott MacDonald, Paris based Technip and the US Canadian Veco.
The contract covers the design of a 360 kilometer long pipeline able to handle 1.5 million barrels a day of crude and a 1 million barrel storage terminal at Fujairah. The pipeline will provide the first direct outlet for Abu Dhabi crude outside the Gulf by passing the Strait of Hormuz.
China orders more coal mine closures
XFN ASIA reported that China's safety watchdog has released a list of 990 coal mines that must be closed down over coming months as part of the national plan to consolidate and rationalize the industry.
China’s State Administration of Work Safety said that local governments must ensure that the mines are shut down forthwith. It added that site inspections must also be maintained in order to discourage local pit bosses from reopening the mines once the latest closure campaign has been completed, a phenomenon known in the industry as 'fire returning from the ashes.
A total 403 of the mines on the list are situated in the leading coal producing province of Shanxi in northern China, but it also includes 230 small scale pits in Yunnan and 112 in Chongqing, both in the country's southwest.
According to State Administration of Work Safety with the majority of China's coal mine fatalities taking place at small and badly equipped mines, the government has launched a nationwide campaign to shut down facilities with capacities of less than 300,000 tons. It aims to close at least half of the small mines by next year. However, the central government has found it difficult to enforce the policy. It has also had to take on a number of regional authorities found to be colluding with illegal mine owners in order to maintain employment, boost tax revenues and in some cases earn kickbacks.
China plans to close a total of 10,000 mines over the course of 2007, the safety watchdog said earlier this year.
NanoSteel commercially launches new super hard weld material
The NanoSteel Company, a leading producer of nano structured steel alloys for industrial applications, has announces the commercial availability of its latest alloy line utilizing the company's patented Super Hard Steel technology.
SHS9700 features an ultra refined crystalline microstructure up to a thousand times finer than existing solutions and extreme hardness up to 69 Rc without the use of nickel, molybdenum or tungsten. SHS 9700, produced in a range of cored wire diameters is suitable for MIG, Open Arc and Submerged Arc applications and an atomized powder for PTA applications. It provides exceptional wear resistance in severe abrasion environments up to five times that of traditional chrome carbide and complex carbide materials.
The improved hardness, wear performance and cost effective pricing of SHS9700 makes it an attractive hard facing and wear plate welding material for commercial end users needing to extend the service life of mission critical parts and components on ground engaging tools and materials processing equipment used in industries such as mining, construction and oil & gas.
Mr Dave Paratore president & CEO NanoSteel said "The hard facing market in recent years has been hit hard by the increasing costs of certain raw materials. We set out to design a product that completely eliminated the dependence on these elements while providing significantly better performance. SHS 9700 goes even further than our previously released materials by completely eliminating the need for tungsten. It fills a unique position in the wear solutions market by offering customers performance between complex carbide and tungsten carbide products at a cost effective price."
The NanoSteel Company Inc headquartered at Providence in Rhode Island develops and markets a range of patented super hard steel nano structured materials that can be applied with a variety of widely available industrial processes, including thermal spraying, welding and laser cladding.
US steel prices to likely to increase amid tight supply
According to industry analysts, most of the major US steel mills have decided to increase the steel price, which will take effective this fall when the global supplies tighten.
Lehman Brothers analysts have said that strong worldwide demand for iron ore will drive steelmaking costs up about 25% in 2008. It added that the mills are expected to pass on higher raw material costs by raising their prices for finished products. In July, the steel imports into the United States were down by 22%YoY.
The imports of hot rolled steel were also down by 45% for the year. So far the imports of flat steel from China have fallen by 25% this year and is expected to decrease further.
Sheffield Forgemasters bags roll supply contract from Severstal
It is reported that world leading engineers Sheffield Forgemasters International Limited has inked EUR 11.5 million contract for supply steel rolls to Severstal under which it would supply 596 work rolls and 26 back up rolls over a two year period. As per report, Severstal signed the contract in August 2007 after six months of negotiations.
Mr Ken Brook’s senior sales manager at Sheffield Forgemaster’s rolls department said that “This contract forms part of a continued development of business between Sheffield Forgemasters International Limited and Severstal. We originally supplied ten steel rolls to Severstal many years ago and we have worked to build on that relationship.”
He added that Forgemasters is now responsible for providing 70% of Severstal’s entire steel roll requirement.
Cape Lambert identifies untested magnetic anomalies
Iron ore exploration and development company Cape Lambert Iron Ore Limited announced that it has identified several large untested magnetic anomalies at its Cape Lambert iron ore project located in the Pilbara region of Western Australia.
The release said that
1. Several, large untested magnetic anomalies identified within 2 kilometers of the existing Cape Lambert resource.
2. The anomalies have an equivalent magnetic response to that of the existing resource.
3. The anomalies, on drill testing, may increase the extent of magnetite mineralization.
4. Drill testing of the magnetic anomalies is planned for the December quarter.
On 16 April 2007, Cape Lambert Iron Ore Limited notified the market that it had finalized an option agreement to acquire three tenements to the east of and contiguous with the Cape Lambert project tenement EL47/1462. The tenements, which are subject to the option agreement are EL47/1271, EL47/1233 and EL47/1248 and have an aggregate area of 154 square kilometer. As part of the option agreement, it conducted an aeromagnetic survey and subsequently engaged independent geophysical consultants Resource Potentials to interpret the magnetic survey.
Chinese export of molybdenum ore during 7 months
According to the China’s Customs data, China exported 7465 tonnes of molybdenum ore to Europe Union through July 2007 down by 19.3% YoY.
During the period shipment to South Korea is posted at 6678 tonnes up by 29% YoY in the same comparison and shipment to India was 1096 tonnes up by 23.8% YoY.
The above mentioned three markets accounted for 92.4% of China's total molybdenum ore export during this period.
(Sourced from MySteel.net)
Alert Steel earnings surge on construction boom in SA
It is reported that steel retailer and building materials company Alert Steel reported an 88% increase in headline earnings on increased activity in the South African construction industry. Alert Steel which released its first set of results as a listed entity said that the financial performance was an indication of the prospects that could arise between now and 2010, when South Africa hosts the world’s largest soccer tournament.
Mr Wynand Schalekamp CEO of Alert Steel said “The results are only an early indication of the significant opportunities in the domestic market in the period leading up to the 2010 soccer World Cup. The 2007 year end was characterized by an increase in the demand, primarily from the building and construction industry, and we were able to slightly increase our margins as a result of this.”
Mr Schalekamp said that the domestic economy remained robust and although economists were predicting a moderate downturn in the global and domestic markets and Alert is anticipating further increases in investment in middle and low cost housing, infrastructure projects and major capacity expansion program in the power water and transportation sectors.
Mr Schalekamp said “We are currently increasing the retail areas of two of our existing stores by at least 4 500 square meter and we have identified six new sites, which potentially can increase our retail space by approximately 25 000 square meter over the next 12 to 18 months.”
Alert Steel has a medium term expansion strategy, which would include the redevelopment of certain sites an increase in product ranges and the acquisition or conversion of existing steel merchants. Last month, Alert made a bid to buy Steel Giant’s operations for ZAR 12 million and the company said that, should the Competition Commission approve the deal, it would further boost the company’s growth prospects. If the acquisition is approved, Alert would add an additional four stores to the existing 14, bringing the total to 18.
Midwest Corp’s Yilgam infrastructure plan facing showdown
It is reported that the conflict over rival USD 3 billion rail and port infrastructure plans for Western Australia's mid west iron ore region is set to escalate this week ahead of a key meeting of state government ministers to consider the issue.
Iron ore miner Midwest Corp will send out an information pack to government promoting a Chinese backed plan from Yilgarn Infrastructure which would result in open access port and rail infrastructure being owned independently of the various miners in the region. Midwest is facing a potential showdown with the state Government after Deputy Premier Mr Eric Ripper said the Government was considering terminating its agreement with Midwest, which forms the basis of Yilgarn's project.
A rival infrastructure project is being promoted by Japan's Mitsubishi, which owns half of mid west miner Murchison. Until the tie up with Mitsubishi, Murchison had been working with Midwest on the Yilgarn Infrastructure proposal but Midwest and Yilgarn have sought to strengthen their hand by formally agreeing on their deal for Midwest to become a foundation customer for Yilgarn.
Midwest will bring in volume commitments for 15 million tonnes to 20 million tonnes a year towards Yilgarn's minimum target of 30 million tonnes. However, Yilgarn ideally wants to sign up commitments for 60 million tonnes to 70 million tonnes through the proposed new port at Oakajee.
Russia's industrial growth lowest in August 2007
RIA Novosti reported that Russia reported a 3.8% industrial growth in August YoY the lowest rate since early 2007. It added that Russia posted the highest industrial growth of 10.9% in June 2007 while industrial output increased by 7% YoY in January to August 2007 as compared to January to August 2006.
The official forecast for industrial growth in 2007 is 5.2%, but the Russian economics ministry said it could be raised. There are plans to submit a specified forecast to relevant ministries and departments by September 20th 2007. Processing industries reported the highest growth of 5.5% in August 2007 and increased 10.9% in January to August 2007 YoY.
Russia increased mineral production by just 0.5% in August 2007 and 2.4% in January to August 2007. The country produced 200 million metric tonnes of coal, 326 million metric tonnes of oil and 429 billion cubic meters of gas in January to August 2007.
Plans for steel company in Kiev region encounter local opposition
Ukrainian Journal reported that plans to build a new steel making company in the Kiev region are facing growing opposition from local authorities that fear the project may worsen environment in the region.
The report added Mr Valentyna Semeniuk head of the State Property Fund backed the mayor of Bila Tserkva a city 100 kilometer south of Kiev who has been campaigning against the steel company.
Genco plan to extend time charter for Handymax Vessel
Genco Shipping & Trading Limited announced that it has reached an agreement to extend the time charter for the Genco Wisdom, a 1997 built Handymax vessel currently on charter with Hyundai Merchant Marine Co Ltd.
The extended time charter will be for an additional 35 months to 37.5 months at a rate of USD 34,500 per day, less a 5% third party brokerage commission. The extended time charter, subject to the completion of definitive agreements is expected to commence on March 1st 2008, upon the expiration of the current time charter.
Mr Robert Gerald Buchanan president of Genco Shipping & Trading Limited said that "We are pleased to extend our time charter for the Genco Wisdom over the long term at a rate more than 43% higher than the previous level. Management's expertise in capitalizing on a strong freight market has enabled Genco to enter into a total of 13 time charters at accretive levels to date in 2007. Currently, we have approximately 89% of our fleet's estimated available days secured on contracts for the remainder of 2007 and 71% for 2008. By expanding our time charter coverage at attractive rates, we have further enhanced our ability to distribute sizable dividends to our shareholders."
