Mukand inks JV with Bekaert for SS wire mill

Mukand Limited has announced that it is setting up an equal JV with Belgium's Bekaert SA to make stainless steel wires with an investment of INR 1 billion. The JV will come up in Satara in Maharashtra.

Mr Rajesh Shah co chairman of Mukand said that the proposed plant, on a 25 acre MIDC plot, would have a capacity of 12,000 tonnes a year and would be operational in 24 months.

Bekaert is said to be the largest global producer of steel wires with manufacturing facilities in 26 locations worldwide. It has a facility in Pune that produces steel cords for radial tyres and carding products for the textile industry.

Mukand manufactures about 400 grades of long steel products in the form of rods, bars and bright bars, besides steel alloy wires.

L&T consortium bags INR 1,205 crore BF order from Bhushan Steel

It is reported that engineering and construction major Larsen & Toubro Limited along with Italy based Paul Wurth has bagged an order worth INR 1,205 crore from Bhushan Steel for construction related work at Angul plant.

The order was bagged for turnkey construction of a 2.5 million tonnes per annum blast furnace for Bhushan Steel’s Anugul plant in Orissa, scheduled to be completed in 28 months commencing from December 2007. L&T’s share in this project is pegged at INR 760.5 crore. In a span of 2 years, this is the L&T’s third successive order for the construction of large capacity blast furnaces.

The Italian firm Paul Wurth’s scope of work covers basis engineering, supply of proprietary and special equipment while L&T would undertake detail engineering, supply of indigenous mechanical, electrical and instrumentation works.

L&T Paul Wurth consortium is presently executing a 2.5 million tonnes per annum blast furnace on turnkey basis for TATA Steel at Jamshedpur which is nearing completion. Besides, the consortium bagged yet another order from TATA Steel for a 3.2 million tonnes per annum blast furnace at its Kalinganagar Project. Also, work on the 2.5 million tonnes per annum blast furnace for RINL Vishakapatnam has commenced.

Mineral rich states concerned over new mineral policy

Mr Sis Ram Ola union minister of mines said that chief ministers of Orissa, Chattisgarh, Jharkhand, Rajasthan and Karnataka had raised concerns on dilution of powers of the state governments in the national mineral policy 2007.

Mr Ola added that these issues were discussed with the governments of chief mineral producing states and based on the resolution achieved with them, a draft national mineral policy is under consideration of the group of ministers.

CIL subsidiary CCL likely to get mini ratna status by October

PTI reported that Coal India Limited is likely to add one more feather on its cap, with the union coal ministry finalizing modalities to grant mini ratna status to its subsidiary Central Coalfields Limited in October 2007.

A coal ministry official said that " Central Coalfields Limited is likely to be conferred the mini ratna status by October 2007 as it has become eligible for the same after having fulfilled the required criteria as envisaged by the department of public enterprises. What encouraged was that CCL had successfully wiped out its losses and is likely to become among the top-notch subsidiaries of the CIL." They added that CCL has initiated programs to improve its overall production and that its performance indicators were good.

It is noted that Coal India Limited and 4 of its profit making subsidiaries, Mahanadi Coalfields, Northern Coalfields, South Eastern Coalfields and Western Coalfields, have already been conferred the mini ratna status. Mini ratna status, if conferred, would provide more operational autonomy to the CCL and enable it chalk out outlays under parameters set by the centre.

CIL and its subsidiaries including CCL registered profit before tax and dividend of INR 8,212.69 crores (provisional) during 2006-07 which was INR 464 crores less than that previous fiscal during which it made a profit of INR 8676.72 crores.

NTPC likely to become 2nd largest domestic coal producer

It is reported that National Thermal Power Corporation is aiming to emerge as the second largest coal producer in India behind Coal India Limited by the next plan period. NTPC’s coal consumption is expected to surge to 185 million tonnes to 200 million tonnes annually by the year 2017 up from 112 million tonnes at present and it is planning to meet up to 25% of its total coal requirement from its own production over the next 10 years.

As per report, NTPC is looking to invest in either Indonesian or Australian coal mines by as early as next year and all options are being actively considered, including acquisition of equity stakes in overseas mines.

The report cited a NTPC official as saying that “NTPC’s entry into coal mining has been driven by strategic emphasis on ensuring fuel security and deriving economy and stability of pricing. We hope to set new benchmarks of efficiency and productivity in coal mining to lower final cost of power to the consumer through the forward and backward linkages across the business.”

NTPC is currently buying most of its coal from Indonesia to tide over the domestic supply deficit.

NTPC, which produces 27% of India’s total electricity generation, plans to almost double its generating capacity to 50,000MW by 2012 from the current 27,904MW. NTPC operates 18 coal fired projects with a cumulative capacity of 23,209MW, while its remaining capacity operates on gas and liquid fuel.

Number of accident in coal mines reduces

Dr Dasari Narayana Rao union minister of state for coal said that the fatality rate in terms of number of fatalities per million tonnes of coal production has come down from 6.66 in 1975 to 1.32 in 1985, 0.80 in 1995, and 0.32 in 2006.

The details of fatal accidents in coal mines during in the last 3 years and the current year are given in the table below:

*provisional

Dr Rao also said that the main reasons for the accidents are fall of roof and sides, accidents in rope haulage and conveyor system, fall of persons or objects, inundation, gas explosion etc. in underground mines and accidents in operation of dumpers and other machinery in opencast mines. He further said that the management of the colliery is responsible for strict compliance of the prescribed safety standards in mines. Over and above, the regulatory authority the directorate general of mines safety regularly undertakes safety inspection of the mines to enforce compliance of safety legislation. At national level the safety aspects of coal mines in India are reviewed periodically by the standing committee on safety in coal mines under the chairmanship of minister of coal.

In addition to compliance with the requirements of mine safety laws, Dr Rao informed that coal companies are taking the following measures to reduce number of accidents:

1) Scientific roof support systems based on rock mass rating
2) Increased use of steel supports and roof bolts in place of timber supports
3) Avoiding exposure of workers to hazardous conditions by mechanization of loading operations in underground mines through deployment of side discharge loaders and load haul dumpers etc and replacing rope haulages with conveyor belts wherever feasible
4) Introduction of continuous miner technology and long wall technology in underground mines where ever feasible
5) Regular monitoring of mine environment for detecting inflammable and noxious gases using modern equipments like digital multi gas detectors etc

Before every monsoon preventive measures against inundation are implemented through:

a) Strengthening pumping arrangements
b) Emergency plan for keeping vigil on situations
c) Check co relation survey to establish the barriers between waterlogged workings wherever danger of inundation exists
d) Filling up the surface cracks
e) Implementation of code of practices for heavy earth moving machinery operators, maintenance staff & others
f) Thrust on training & retraining of supervisors and workmen including contractor’s workers to increase safety awareness
g) Workers participation in safety management
h) Regular safety audit of mines and risk assessment
i) Safety monitoring through multi disciplinary internal safety organization

Maoists plan to attack mining facilities in the Bailadila hills

According to Chhattisgarh police sources, Maoist guerrillas are planning to step up attacks on iron ore mining facilities in the Bailadila hills in Chhattisgarh, which are known for one of the largest and finest quality iron ore stocks in the world and account for 18% of India's estimated 24 billion tonnes of iron ore deposits.

Police sources added that they have found leaflets and posters in which the radicals have vowed to intensify attacks.The leaflets were found just two days after Mr B Ramesh Kumar CMD of NMDC admitted at a press conference in Hyderabad that the company suffered losses of INR 1.15 billion in 2006-07 and INR 900 million so far in this fiscal due to Maoist attacks on mining facilities in Bailadila hills.

The Bailadila hills iron ore is divided into 14 deposits. The National Mineral Development Corp Ltd , India's largest public sector iron ore producer and exporter, has mining activities in 3 deposits. It also has a deal with the Chhattisgarh government for opening up deposit number 13 in a JV.

It is noted that the Maoists also killed 8 Central Industrial Security Force personnel in February 2006 in an attack at NMDC's explosives store at Bailadila hills. The guerrillas had taken away huge stocks of high-powered explosives that are yet to be recovered.

Centre plans to divest 4.75% stake in NTPC

It is reported that union government is planning to divest 4.75% of its stake in NTPC, which could be able to rise about INR 6,000 crore in this stake sale through a follow on public offer.

Sources said that the power ministry had approached the department of disinvestment for offloading the stake. NTPC had a few years back proposed an initial public offering of 24%. But in February 2004, the government allowed NTPC to go for an initial public offering of 10% of its paid up capital in one or more stages to augment resources.

NTPC, however, offloaded only 5.25%, leaving balance 4.75% of approved initial public offering for later date. The initial public offering of 5.25 % was tagged with government divesting an equal shareholding. Subsequent to the offer, government shareholding in NTPC fell to 89.5 % from 100 %. NTPC had risen about INR 5,400 crore through its initial public offering.

Centre permits leasing port assets to private operators

Mr Thiru TR Baalu union minister of shipping, road transport and highways said that leasing out of existing assets of the port to private operators for providing port services is permitted under the existing scheme for private sector participation in major ports.

Mr Baalu added that selection of the private operators for providing the port services is required to be made through open competitive bidding and the party offering the highest share of gross revenue to the major port from the operation of the port facility is to be awarded the license, which period may be for a maximum period of 30 years at the end of which the port related assets will revert back to the port in accordance with the conditions of the license agreements entered in to by the major port with the private operator.

India government to allow 100% FDI in titanium ore mining

It is reported that Indian government is all set to allow 100% foreign direct investment in titanium ore mining under the automatic route from current 74% by set department of atomic energy and the cabinet is set to take a decision on the proposal next month. The proposal is also part of the national mineral policy awaiting cabinet approval. Department of atomic energy has agreed to move titanium ore mining from the list of sensitive activities to regular mining activities.

A union commerce & industry ministry official said that “After having been given a go ahead by the department of atomic energy, the department of industrial promotion & policy has included the proposal in the yearly FDI review. The review has been finalised after getting comments from various ministries and sent to the cabinet. Earlier, both titanium and uranium were in the same list compiled by department of atomic energy. Now, titanium mining would be regulated by the ministry of mines. The move is expected to attract major investments in India’s titanium reserves that constitute 30% of the world’s total.

The Hoda Panel on the new mineral policy has also recommended that department of atomic energy, which controls mining of some of the beach sand minerals classified as atomic minerals earlier should allow flexibility to miners to explore and exploit the minerals including exports without having to mandatorily undertake value addition.

Interestingly, India’s ilmenite reserves of 400 million tonnes represent only 10% of the total potential in India. Detailed exploration has been completed on 1,000 kilometer long coastline but actual mining is being undertaken only in 100 kilometer area. Billed as the metal of future, titanium and its alloys are used as basic raw material for aircraft and aerospace, and its use is gradually increasing in other areas including chemical industries, iron and steel industries and FMCG sector. It is recognized as a strong metal, light in weight, non corrosive and able to withstand extreme temperature with melting point of 1,800° C.

Tuticorin handles vessel requiring 12.46 metres draught

It is reported that Tuticorin Port has successfully handled deep draught vessel with a draught beyond 10.7 meters with the anchorage of the first coal vessel called MV Elpida S with a draught of 12.46 meters and carrying 53,106 tonnes of Indonesian coal on August 10th 2007.

Tuticorin Port, with a permissible draught of 10.7 meters, had proposed in July 20th 2006 to handle deep draught vessels at anchorage beyond that, subject to certain conditions and announced the same through an issue of trade notice in July 2007.

Utilizing the new facility offered by the Port, Seapol Shipping Private Limited Tuticorin has nominated MV Elpida S with 53,106 tonnes of Indonesian coal, imported by Coastal Energy of Chennai.

Tuticorin Port authorities, deploying 2 self-propelled barges of capacity 1,000 tonnes and 1,200 tonnes, have effected the lighterage operation. After successful lightening of about 8,720 tonnes of cargo, the vessel reached the permissible draught of 10.7 meters and was berthed at VOC Berth No III for full and final discharge of cargo.

Omkareshwar hydel project’s third unit to commission by August 2007

It is reported that work on 65MW third unit of Narmada Hydroelectric Development Corporation's 520MW(8x65 MW) Omkareshwar hydel power project at Mandhata in Madhya Pradesh is likely to be commissioned by end of August 2007 and load testing will be performed by September 4th 2007. The other 2 units of 65MW each have been commissioned and have started commercial production from August 21st 2007.

The project is being executed by the Jaypee Voith Siemens consortium. Of the total INR 2,224.73 crore project cost, around INR 2,145.30 crore have been invested in the project and an amount of INR 1.98 crore has also been disbursed as compensation. The entire project is expected to complete by November 14th 2007.

ArcelorMittal to acquire Wabush Mines

ArcelorMittal announced that it will acquire Wabush Mines an iron ore and pellet producer in northeastern Canada. ArcelorMittal will exercise the option right of first refusal that its Dofasco subsidiary had on the Wabush Mines Joint Venture. Dofasco, which already held 28.6% of the mining venture, will acquire the interests of Stelco 44.6% and Cleveland Cliffs 26.8% on the same terms as those offered by Consolidated Thompson on June 6th 2007.

These terms include a cash element of around USD 67 million and certain liabilities. As a result ArcelorMittal will own 100% of the mining company. The transaction, which is subject to regulatory approval is expected to be finalised by December 2007.

Wabush produces concentrates at its Scully mine in Wabush. The concentrate is transported by rail to its Pointe Noire pelletizing and port facility located on the north shore of the St Lawrence River. Yearly production of pellets is approximately 4.8 million tonnes. Wabush's mine and port operations are close to those of Québec Cartier Mines a mining subsidiary of Dofasco.

Mr Malay Mukherjee member of ArcelorMittal's group management board in charge of mining said that "The acquisition of Wabush Mines and facilities will enable us to exploit the synergies with the Group's existing Québec Cartier Mines operations to increase overall pellet production in the medium term by about 3.5 million tonnes per year. This will bring ArcelorMittal closer to its stated objective of 75% iron ore self sufficiency."

NLMK signed contract to supply another pre-painting line

Novolipetsk Steel announced that it has signed a contract with the German company Sundwig to supply its third pre painting line which will have an annual production capacity of 200,000 tonnes of steel. The contract is worth EUR 33 million and the new equipment will be delivered within 14 months.

The new facility is to be installed at the main production site in Lipetsk in 2009, within the framework of the Phase 2 Technical Upgrading Program.

In 2007, the company signed a contract to supply equipment for its forth hot dip galvanizing line, with an annual production capacity of 300,000 tonnes. Upon commissioning these new facilities, NLMK plans to produce up to 1.11 million tonnes of galvanized rolled steel, including 595,000 tonnes of galvanized pre painted products.

Baosteel-Handan Steel JV clear with investors

Baoshan Iron & Steel Co Ltd issued an announcement saying it agrees the JV program to be conducted between the parent company Baosteel Group and Hebei Province based Handan Steel Group which will promote the 4.6million tonnes per year steel project and will retain the right for stake acquisition of the JV from its parent.

Earlier Handan Steel Group and Baosteel Group on May 10th 2007 signed a letter of intent to build a 50: 50 JV in Hebei to support Handan Steel's new area steel project with registered capital of CNY 12 billion.

In view of possibility that the newly invested 4.6 million tonnes steel project may cause competition with Baoshan Iron & Steel Co, Baosteel Group's flagship listed unit the group company wanted to consult the unit about this.

The listed company consents the JV program conducted between two groups and said would retain the right to buy stake of the JV from the parent at right time, on account of consideration of Handan Steel Group's intent, potential risk of the project and its own financial pressure at the moment. It also praised the investment project boasts mature technology, advanced equipment, complete design of specifications and proper division of products.

Baosteel Group vowed to transfer the shareholding in the JV to the listed unit at a reasonabe price once has its request.

Handan Steel's new area steel project is a keynote one for steel industrial structural readjustment in the 11th five year plan. At total cost of CNY 19.368 billion, the project will be finished in two stages, by 2008 and 2010 respectively, to produce high end products for the automobile and appliance sectors etc.

(Sourced from MySteel.net)

MMK to invest USD1 billion into development of a CR unit

FIS reported that the structure of Magnitogorsk Metal Integrated Works now has a new production subdivision sheet roll works No 11. Within the next three years a cold roll unit will be constructed in the works to make 2 million tonnes of products per annum.

MMK said that the new unit will enable Magnitka to make high quality cold roll and zinc coated car sheets and metal products for household equipment manufacturers. The unit's equipment supply contract was concluded in July 2007 with SMS Demag Concern.

SMS Meer supplies fourth large-diameter pipe mill to China

Zhongyou BSS Petropipe Co Limited a subsidiary of the Baoji Petroleum Steel Pipe Co Ltd of China has placed an order with SMS Meer a company of the SMS group for the supply of a large diameter pipe mill. The new mill employing the JCOE® process developed by SMS Meer will have an annual capacity of up to 150,000 tonnes and be the most modern of its kind in China. It will be used to produce longitudinal SAW steel pipes with diameters from 508 mm to 1,422 mm and wall thicknesses up to 40 mm in lengths of maximal 12.2 m and material grades up to X100. The plant is to be built in the Qinhuangdao special economic zone near Beijing and is scheduled to go into production in summer 2008.

Crucial aspects for the placement of the order were the advantages offered by the JCOE® process with the JCO® pipe forming press as main forming aggregate. The JCOE® process has established itself on the market worldwide in competition with the UOE process and three roll bending process due to its higher flexibility with high product quality and lower investment costs. It has been employed in ten pipe mills to date in recent years.

SMS Meer is to supply the key machines for the plant, such as the plate edge miller, the technological components of the crimping press, the JCO® pipe forming press, a hydraulically adjustable tack welding machine and a mechanical expander. The pipes produced are to be employed in pipeline construction and meet all the relevant API standards. They are intended for use in pipelines transporting oil and gas from Chinese rigs in the northeast of the country to the major cities in the east and southeast.

Techint to invest USD 850 million by 2010

Xinhua reported that Argentina's largest steelmaker Techint will invest USD 850 million by 2010 to boost its production to 4 million tonnes a year.

Mr Paolo Rocca president of Techint during a tour of its facilities with Mr Nestor Kirchner president of Argentine said that the investment was a demonstration of its confidence in Argentina and the country's prospect of economic growth. Techint current output stands at 2.5 million tonnes a year. He added that some USD 680 million will go directly to Techint's largest business the Siderar steel company in the town of San Nicholas.

Shagang inks framework agreement for new DRI facility

Interfax China reported that Southeastern China's Shagang Group has inked a cooperative framework agreement with China's Central South University to construct a multi phase direct reduced iron facility in Jiangsu Province with an eventual capacity of 2 million tonnes of pellet per annum.

Bumi Resources to issue USD 150 million convertible bonds

Antara news reported that Indonesian state coal mining company PT Bumi Resources is planning to issue convertible bonds worth USD 150 million to finance its business diversification program.

Mr Dileep Srivastava senior vice president for investor relations of PT Bumi Resources said that proceeds from the issuance of the zero coupon bonds guaranteed by treasury shares would be used to finance gold, iron ore and copper exploration activities in a number of countries. He added that the par value of the bonds due in September 2012 was IDR 3,250. The company now has 364.966 million treasury shares convertible into bonds worth USD 300 million. But this year we will not use the entire treasury shares and will only issue convertible bonds worth USD150 million at the most.

He said Bumi Resources was planning to run gold and copper mining concessions in Palu and Gorontalo, Sulawesi and iron ore mining concessions in Mauritania. The two mining concessions are expected to start production in 2010 or 2011.

Bumi Resources had appointed Credit Suisse as the bond issue underwrite.

Severstal Metiz to launch a new Net welding unit

FIS reported Severstal metiz to launch a new net welding unit for manufacturing of welded net from regular zinc coated wire. The productivity of the new unit is practically three times higher that that of the equipment currently operated at the enterprise.

The new unit will help increase the quality of finished products and expand significantly the product mix as well as provide considerable economy as regards equipment readjustments and production costs.

Taiwan's downstream mills asking CSC to cut galvanized steel price

It is reported that affected by construction and building sectors keep quiet in Taiwan, the downstream dealers are asking China Steel Corp. to cut galvanized steel price by USD 100 per tonnes.

But China Steel Corp said it will only reduce price by USD 40 to USD 50 per tonnes. As for current coated steel price is at FOB USD 870 per tonnes. CCS’s HDG price is at FOB USD 810.

Dealers said that their coated process cost is about USD 50 per tonnes. The cost is too high to accept, so dealers hope CSC could cut galvanized steel price.

Transredes to invest USD 1 billion in Bolivia

Reuters reported that Bolivian natural gas transport company Transredes plans to invest more than USD 1 billion in developing pipelines and infrastructure in the South American country by 2010.

Mr Ernesto Blanco head of Transredes said that the company is going to invest about USD 1 billion by 2010. He said the firm would continue to invest in Bolivia despite the tough terms imposed by the leftist government which is striving to increase state revenue from the energy sector.

Mr Blanco said between USD 500 million and USD 700 million would be spent on a new pipeline through which Bolivia will almost quadruple the amount of natural gas it exports to Argentina from the current maximum of 7.7 million cubic meters a day.

Britain's Ashmore Energy International Ltd has a 50% stake and administrative control of Transredes, the largest pipeline company in the South American country while state run energy firm YPFB holds a 34% share. The rest is in the hands of small investors.

Chinese private steel mills seeking regrouping to survive

It is reported that a Jiangsu Province based steel mill signed a pact with an American corporation for going public in the US next year and if the Chinese mill fails to realize target profits, it will have the American corporation take majority shareholding.

Mr Xu manager of Jiangsu Province based steel mill said they need a platform to finance development, raise technical level in order to survive the elimination.

According to Mr Xu a good number of private steel mills at least 30% are seeking chance for capital operation though some didn't find the right target. The mills are mainly located in East China while the other regions see just few.

Most challenging reality for the private mills is the ongoing M&A tide. Baosteel, China's top, has merged or entered into cooperation with Bayi Steel, Handan Steel and Baotou Steel etc and its acquisition would expand further given its leading position and national support.

Mr Bingsheng deputy director of CISA had revealed China's steel consolidation would shape four bases in Northwest, North China, East China and the Central and Southwest. Where Mr Qi Xiangdong deputy secretary general of CISA yet noted both state owned and private steelmakers will have to seek government approval to absorb foreign capital.

Mr Xu predicted that "In 3-5 years, 30% of private steel mills will be forced out, leaving the remainder struggling in competition, while only 30% will finally survive."

China's private steel mills mushroomed when demand from both home and overseas market mounted these years while a majority is small and backward in technical level.

(Sourced from MySteel.net)

Barcoding Inc uses apparel RFID to track metal pipes

It is reported that Baltimore based Barcoding Inc once again proves that their ability to provide creative and effective solutions is unsurpassed. When faced with the challenge of tracking 20 foot lengths of stainless steel pipe, RFID engineers found the answer in a unique place.

Mr Bill Poulsen chief RFID system designer for Barcoding Inc said that "Metal objects are generally difficult to tag and track with RFID, especially long and heavy pipes of varying diameters. Working on the solution was getting frustrating. Then, all of a sudden the answer hit us, why not use an apparel hang tag, but in a new and unique way."

The printable RFID hang tag produced for retail clothing provides an adhesive backing that is easily attached to the end of the pipe. Not only does the adhesive backing provide a secure attachment, but it also keeps the tags' antenna away from the metal surface. This has resulted in an effective way to firmly attach the tag, while providing a very high level of read accuracy.

Barcoding Inc helps business and government organizations deploy supply chain technology including solutions for route accounting, warehouse management and inventory control. Clients include manufacturing, distribution, healthcare and warehousing companies, along with many states, local and federal agencies. Based in Baltimore, Maryland, Barcoding has North American offices in Connecticut, Florida, Georgia, Massachusetts, Michigan, Illinois, New York, Pennsylvania, Colorado, Tennessee, Texas, and Virginia. European sales and customer service are handled through an office in the Netherlands.

Macarthur Minerals Limited updates

Macarthur Minerals Limited announced the following update on its exploration activities at its 100% owned 1,155 square kilometer Lake Giles magnetite iron ore and base metals project in Western Australia. The stages of drilling program

1. Stage 4 Drilling Program
The Company has just signed a contract to drill a further 8,000 to 10,000 meters commencing in September 2007. This program will focus on the Iron Ore potential of the area with several holes being scheduled to be drilled in Nickel targets which have been identified from previous field work.

2. Stage 3 Drilling Program
The Company completed its Stage 3 Drilling Program in February/March 2007 and has now received all results. To date, a total of 42 RC drill holes have been completed for 7,746 meters and approximately 1,500 composite samples have been analyzed for multi elements, and approximately 250 composite samples have been submitted for Davis Tube analysis.

The current resource estimates are based on the 42 reverse circulation drill holes and the 7,746 meters of drilling. The drilling was completed in three phases as summarized in Table 1.

RC drilling campaigns

Hellman & Schofield Pty Ltd was commissioned by the Macarthur to estimate resources for the Lake Giles magnetite iron ore project in the Yilgarn Craton of Western Australia. Three areas have been identified from the drilling as potential resource areas.

Macarthur further advises that the following mining leases M30/0206, M30/0207, M30/0208, M30/219, M30/0228 and M30/0229 have been granted by the Department of Mineral Resources. The scheduled Stage 4 drilling will also include exploring the newly granted mining leases. The Company noted that having had the above mining leases granted does give Macarthur a competitive edge over other junior explorers in the quest for additional funds and or partners.

Hyundai Steel to reduce import of scrap from Japan

It is reported that South Korean Hyundai Steel is to reduce the import of steel scrap from Japan in the H2 of 2007.

Recently Japanese scrap price keeps going up, so Hyundai Steel is increasing scrap import from the United States. The import price is USD 350 per tonnes. It was the first time that Hyundai Steel imported steel scrap from 4 steel mills of the United States and the import volume from September to November was 320,000 tonnes.

The increasing import from the United States has lead to the reduction of scrap imports from Japan.

Yuzhny Kuzbass intends to reduce the share capital

AK&M reported that Yuzhny Kuzbass share holders decided to reduce the share capital by 24.4% to drive it to RUB 1.4 million from RUB 1.91 million at the special meeting on August 10th 2007. The share capital will be cut down through the coverage of 11651866 common stocks of RUB 0.04 par.

Yuzhny Kuzbass said that the share capital is split in 1910443 common stocks of RUB 1 par.

Yuzhny Kuzbass revenue in 2006, declined to RUB 18.364 billion from RUB 19.009 billion, net profit to RUB 783.999 million from RUB 1.588 billion.

Yuzhny Kuzbass is included into Mechel Group which covers as well Cheliabinsky Metallurgic Plant, Izhstal, Beloretsky Metallurgic Plant, Yuzhuralnickel, Korshunovsky GOK, Mechel Trade House etc.

Dofasco Licenses Oil Spray Monitoring Technology for Commercialization

IQ Manufacturing Solutions, a provider of intelligent machine vision solutions, announced that in addition to their umbrella licensing agreement with Dofasco for the commercialization of Dofasco's Smart Camera process automation technology, Dofasco is also licensing its Oil Spray Monitoring technology to IQMS to develop for use in other manufacturing processes.

In 2006, Dofasco partnered with IQ Manufacturing Solutions to commercialize their internally developed vision inspection technology, or Smart Cameras. With the successful roll out of the Smart Camera platform into the food and beverage, metals, pharmaceutical, automotive and packaging industries, IQMS is ready to expand their product offering with the latest Oil Spray Monitoring technology coming out of Dofasco.

IQMS' latest product offering, the OILi system leverages Smart Camera technology to monitor deposition of lubricant on exposed galvanneal product, a critical material for the automotive industry. IQMS' OILi system is another example of their Smart Vision platform that solves quality, yield and throughput issues faced by manufacturers.

Mr Michael Dudzic GM of Process Automation of Dofasco said that "This agreement combines the potential of an innovative and proven Dofasco technology, with the entrepreneurial focus of our licensing partners. Smart Camera based solutions have the potential to provide many opportunities to improve manufacturing efficiencies in a variety of industries."

Mr Victor Chupil president of IQ Manufacturing Solutions said that "Proven in the most demanding of manufacturing environments, the IQMS' OILi system provides significant paybacks with a quick return on investment. Dofasco has developed incredible capability through the innovation of process technology and IQMS is pleased to be a partner in the commercialization of their innovations that extract further benefit and create economic value."

IQ Manufacturing Solutions is a dynamic company built on a foundation of manufacturing machine vision expertise. IQMS combines their unique blend of technology expertise with heavy manufacturing experience to offer customers with a total solution focus that ensures successful results. IQMS' solutions span from technical expertise in illumination, optics, camera technology and image processing through to complete integration into process automation infrastructure and operating practices. IQMS' compact, robust systems significantly reduce cost and complexity, providing very attractive returns on investment.

Ailing mine runs in full swing after 2 years

The Daily Star news reported that in a major operational breakthrough, the seriously troubled Bangladesh’s Barapukuria coalmine has resumed nearly full production after two years eliminating the need for the nation to import coal to run its lone 250 MW coal fired power plant. The re opening operation took on August 18th 2007 at a depth of 1,100 feet ensuring highest safety measures, as there were threats of explosion and air poisoning.

Mr Aziz Khan MD of the Barapukuria Coal Mine Company Ltd said that "A phase of the coalmine that was shut down along with mining equipment in October 2005 has been successfully reopened on August 18th 2007. Coal production from this phase has started from August 23rd 2007."

A technical officer of the BCMCL termed the reopening a major breakthrough for the financially crippled mine. He said that "We believe this will change the economic situation of the mine. It is surprising that the mining equipment is completely intact, except for the hose pipes worth may be USD 20,000, everything is running. We are expecting to increase the production between 2,800 tonnes and 3,200 tonnes in the next month."

In early October 2005, the mining authorities sealed off mine phase no 1,110 along with one of the two sets of mining equipment worth USD 5.5 million to avert a disaster due to emission of poisonous gas and self combustion. It became very difficult to reopen this phase as it was filled with carbon monoxide and methane.

Mining of coal was then restricted to just one phase. As a result, the mine's daily coal production target of 2,700 tonnes was halved. This production was inadequate to run the 250MW coal fired power plant at the mine site that requires 2,400 tonnes of coal daily for its operation in full capacity. With the opening of the sealed off area and the recovery of the mining equipment in fully operational shape, the mine is now producing 2,700 tonnes.

Bafokeng enters coal with 500,000 tonnes export allocation

It is reported that the Bafokeng community has diversified into coal mining with the listing of the South African Coal Mining Holdings Limited on the JSE.

Mr Karl Gribnitz CEO of Bafokeng said the two-operation company would be producing two million tonnes of run of mine coal a year, 1.2 million tons of it saleable He said that South African Coal Mining had secured a 500,000 tonnes phase five export allocation through the Richards Bay Coal Terminal, which would come into effect in 2008-09. He added that we are working feverishly to increase our allocation.

The two operations were Umlabu and Ilanga, both in Mpumalanga, Umlabu, producing 1.8 million tonnes a year near Ermelo, and Ilanga, 40 000 tonnes per month near Witbank.

Mr Gribnitz said that the strategy of the company was to cosolidate and then to grow the base that the company had developed, absorbing the troubled Yomhlaba Resources in the process. This is not what I call a lifestyle mining where you buy the mines and try to get cash out. He added that the idea is to use this platform to acquire more companies consolidated under the existing brand and to expand the group into a much bigger mining player.”

The opportunity for consolidation was initially in the small low-seam mining industry, where there was a need for companies to set themselves up in anticipation of the 2009 black economic empowerment equity deadline and the 2014 Department of Minerals and Energy rules.

Ferro Metals sets date for move to main UK market

Reuters reported that International Ferro Metals has planned transfer to London's main market from its junior counterpart would take place on August 31st 2007.

International Ferro, which produces ferrochrome for use in stainless steel is worth around GBP 560 million and is expected to enter the FTSE 250 index.

The firm recently raised GBP 223 million to fund its expansion plans and has said it is looking to buy up or merge with rivals to boost scale.

CABO to drill for New Millennium Capital at Kemag Iron Ore Project

Cabo Drilling Corp announced that New Millennium Capital Corp of Calgary in Alberta has awarded Cabo's Ontario division a contract to drill 6,700 meters on New Millennium's 100% owned KeMag Iron Ore project near Lac Harris in Quebec. This is Cabo's second contract with New Millennium. The Company's first contract for 8,000 meters of BTW size core was completed in October 2006 on New Millennium's LabMag and KeMag Iron Ore Projects in the Provinces of Newfoundland & Labrador and Quebec respectively.

Cabo Drilling Corp has mobilized two, JKS Boyles BBS 25 A, diamond drills to complete the 80 hole program. New Millennium's goal for the program is to increase and upgrade existing Mineral Resources at KeMag. Drilling commenced near the end of July 2007.

New Millennium holds a 100% interest in the KeMag Project and an 80% interest in the LabMag Project. Both properties are located within the Millennium Iron Range.

Cabo Drilling Corp is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions.

Mechel says Mr Zyuzin stake unchanged

Interfax reported that the stake in Mechel held by Mr Igor Zyuzin the Russian coal and steel group's CEO remains at 71.6% despite Calridge Limited a firm owned by Mr Zyuzin reducing its stake in Mechel from 8.9077% to 2.3014%.

The report cited a spokesman of Mechel representative as saying that "We don't comment on transactions by our shareholders, but we can confirm that Mr Igor Zyuzin's interest in the group remains unaltered."

Mr Zyuzin owns shares in Mechel via the Cyprus registered Calridge Limited, Aylmero Enterprises Limited, Bellasis Holdings Limited, Arrowswift Limited and Riezer Investments Limited. Mr Zyuzin's voting stake in Mechel is now 68.2%, though he remains the owner of 71.6%.

Mr Zyuzin earlier told in July that he did not plan to divest his interest in Mechel to any great extent. He added that "What do I need a strategic investor for if I'm the strategic investor myself." He said that he was not planning to sell his shares to any foreign major.

Mr Zyuzin owns 71.62% of Mechel. Mechel also has American Depositary Receipts on the New York Stock Exchange and shares traded on the Russian Trading System. The free float is around 25%.