September, 08 2007
Update of SAIL expansion plans by 2010-11
Dr Akhilesh Das union minister of state for steel recently informed the lower house of Indian parliament that Steel Authority of India Limited is undertaking ambitious modernization and expansion plans to increase production of hot metal from present level of 14.6 million tonnes per annum to 26 million tonnes per annum by the year 2010-2011 at an indicative cost of INR 49,000 crores.
Dr Das said that the expenditure involved in these programs is proposed to be funded by SAIL from internal resources and would be supplemented by market borrowings as required.
Dr das informed that SAIL has taken various steps to rationalize its cost of production, which include
1. 100% production of steel through basic oxygen furnace route
2. 100% processing of steel through continuous casting
3. Value addition by reduction of semi finished steel
4. Auxiliary fuel injection system in all the blast furnaces
5. State of art process control computerization and automation
6. De bottle necking and productivity improvement schemes
7. Secondary refining
8. Augmentation of production facility at coal and iron ore mines
SAIL plans to develop area adjoining the Salem Steel Plant into a steel sector special economic zone, which will have units that would be setting up manufacturing facilities in different areas such as utensils, kitchen and hospital wares, machines and equipments for food processing, chemicals and pharmaceutical sectors, pipes and tubes manufacturers etc. These processing units would be set up by companies other than SAIL and SAIL would provide customized steel input to the processing units in the proposed SEZ. The details of the project will be known only after formulation of project contours such as master planning, detailed feasibility report, utility planning and market study. The scheme is currently in planning stage.
RINL posts net profit of INR 1,363 crore for 2006-07
Rashtriya Ispat Nigam Limited held its 25th Annual General Meeting on September 3rd 2007 at Visakhapatnam. RINL earned a net profit of INR 1363 Crores for the year 2006-07. The year 2006-07 has been a milestone in the history of RINL for achieving a record sale of INR 9151 Crores.
Mr PK Bishnoi CMD of RINL while addressing the shareholders said that RINL has embarked on its expansion program for doubling its capacity from 3 million tonnes to 6.3 million tonnes with an object of not only increasing the scale of operations but also meeting the Customers requirements. He informed that ordering for plant & equipment of major packages is already completed. He said that best efforts are being put for acquiring the state of the art technology in its expansion areas. The Expansion funding will be from internal resources and debt.
Mr Bishnoi also informed that linkages for raw materials security are being explored.
He also stated that the Corporate Plan 2020 for RINL has been finalized aiming to take the capacity of the Plant ultimately up to 16 million tonnes by 2020.
TATA Steel MoU with Riversdale for coalmine in Mozambique
Further to the report on September 4th 2007 that TATA Steel and Australian junior mining company Riversdale Mining have entered into a MoU whereby TATA Steel will become a strategic investor in Riversdale’s Mozambique coal project acquiring a 35% stake in the project for a sum of AUD 100 million, the companies have given update on the agreement.
The Mozambique coal project includes the coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which is fully owned by Riversdale through its subsidiary Riversdale Energy Mauritius. The Benga and Tete tenements together cover an area of 24 960 hectare. The Riversdale management expects that the potential mineralization of the area will be substantially high. The MoU underscores the relationship between Riversdale and TATA Steel to develop the project. Riversdale is conducting a scoping study, which is likely to be completed in August 2007. The definitive agreements are expected to be finalized and executed by the end of November 2007. The completion of the trans actions contemplated by the MoU is subject to the completion of due diligence, definitive agreements and board approval of both companies and regulatory approvals.
Mr B Muthuraman MD of TATA Steel said that “The MoU with Riversdale is in TATA Steel’s stated strategy of progressing towards raw materials security for its global business. This partnership gives TATA Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations.”
Mr Michael O’Keeffe CEO of Riversdale & chairperson said that the MoU with TATA Steel is a decisive corporate event for Riversdale and is a definitive recognition of the Moatize coal basin as a significant new source of supply of hard coking coal products for the global steel industry.”
The hard coking coal derived from this project will be supplied to the Corus facilities in the UK and Europe and also to TATA Steel’s enhanced requirement in India in the future.
Sterlite option to buy residual HZL stake may be stalled
BS recently reported that Sterlite Industries’ hopes of increasing its stake in Hindustan Zinc Limited to around 95% by exercising an open ended call option over the government’s 29.54% residual stake have receded.
The report cited a senior government official as saying that Sterlite would not be able to exercise the open ended option in HZL, which kicked in after April 2007, because the Attorney General has declared illegal another call option granted to the company to acquire the remaining 49% in Bharat Aluminium.
As per report, the Attorney General declared the Balco call option as being ultra vires of the Companies Act, 1956 and said that it was no longer valid. Sterlite had acquired a 51% stake in unlisted Balco as part of the government’s strategic sale of its shareholding in March 2001 for INR 551.50 crore.
Sterlite is reported to have challenged the Attorney General’s views in the Delhi High Court.
Sterlite has acquired 64.92% in HZL till date. Under the shareholders’ agreement, the government had granted Sterlite 2 call options to acquire the government’s entire shareholding in HZL. Sterlite exercised the first option and acquired an additional 18.9% in HZL for INR 323.9 crore in 2003. The report cited Sterlite sources as saying that the shareholders’ agreement entitles the company to exercise its second call option in HZL five years from the initial sale anytime after April 2007. However, it has not exercised that option so far.
Nine firms in race for east coast mega shipyard project
It is reported that the Ennore Port, which has been nominated by Indian shipping ministry as the nodal agency to invite bids for the east coast mega shipyard project had invited expressions of interest from firms interested in the project and 9 firms are in the race for the proposed project.
The firms that responded to the expressions of interests are
1) Chennai based IMC
2) Larsen & Toubro
3) Essar Constructions
4) UK based Mcnulty Offshore Construction
5) Chennai based Goodearth Maritime
6) Mumbai based ABG Shipyard
7) Kolkata based Apeejay Shipping
8) South Korean firm STX Shipping
9) Mumbai based Shapoorji Pallonji & Co
The private firms will be allowed to design, finance, construct, operate, and maintain the shipyard that would build and repair ships with carrying capacity of up to 0.3 million tonnes. The proposed shipyard will comprise 2 big docks and preferably 3 quay side length of at least 2.5 kilometer with 12 meter water depth with various support facilities.
Madras HC admits petition against TATA Steel titanium project
PTI reported that the Madurai bench of the Madras High Court has admitted a public interest litigation seeking to restrain the government from clearing TATA Group's INR 2,500 crore titanium dioxide project in Tamil Nadu without conducting environmental impact assessment.
Justice Prafulla Kumar Misra and Justice PR Shivakumar had issued notice to the union ministry of environment and forests, Tamil Nadu government, project director of TATA Iron and Steel Company and state pollution control board, returnable in 4 weeks.
It is noted that a farmers' association of Tirunelveli district of Tamil Nadu had filed the petition claiming that environmental impact assessment was mandatory for the project to be implemented in 16,000 acres of land, of which around 3,000 acres would be sea shore.
The report cited a study conducted in West Africa, which said that titanium dioxide extraction caused deforestation, relocation of villages, chemical pollution and radioactivity besides emission of carcinogenic dioxins into the atmosphere.
Cairn to invest INR 2,350 crore for oil fields in AP and Rajasthan
It is reported that Cairn India will invest INR 300 crore to augment production and develop infrastructure at the Ravva field in Andhra Pradesh and INR 2,050 crore investments to set up a pipeline along with ONGC, connecting its oil blocks in Rajasthan to the coast under its USD 2 billion CAPEX plan during 2007, 2008 and 2009.
Currently, the Ravva field yields around 50,000 barrels of oil a day and about 80 million standard cubic meter gas. Cairn India's working interest in the Ravva field is 22.5%, with the remaining interests held by ONGC with 40%, Videocon Industries with 25% and Ravva Oil with 12.5%.
At present, Cairn is selling 1 million standard cubic meters a day associated gas at USD 3.5 per million metric British thermal unit and another one million standard cubic meters a day from satellite field at USD 4.33 per million metric British thermal unit. The price will be reviewed in November 2008.
Cairn India has 70% stake in the Rajasthan field, while the remaining is owned by ONGC. The government has approved a development plan of producing 150,000 barrels of oil a day and expects to start production in Rajasthan field by 2009. It is also setting up a USD 750 million pipeline in Rajasthan along with ONGC to evacuate crude from its blocks.
L&T bags major contracts from IOC and Liaoning Huajin
HT recently reported that Larsen & Toubro Limited has bagged 2 contracts for capacity expansion projects worth INR 2.67 billion from the Indian Oil Corporation Limited and China's Liaoning Huajin Chemical Corporation.
IOCL contact is for a residual up gradation project, the Huajin Chemical Corp's contact is for design, manufacture and supply of 2 reactors for a Chinese petrochemical plant.
The report cited Mr MV Kotwal senior executive VP heavy engineering of L&T as saying that "The demand for such critical hi tech process plant equipment in the country as well as abroad is on the rise. We are expanding our manufacturing facilities at Hazira in Gujarat to cater to the demand. L&T had earlier manufactured and supplied a critical hydro-cracker reactor to IOCL's Gujarat plant."
He added that currently L&T's exports account for around 68% of its heavy engineering division's turnover. L&T has supplied several critical reactors to refinery and petrochemical majors across the globe including the US, Canada, Europe and China.
PGCIL to borrow USD 3 billion from World Bank and ADB
ET has reported that Power Grid Corporation of India Limited is planning to raise around USD 3 billion (INR 12,300 crore) from multilateral agencies to fund various transmission projects by 2012.
As per report, PGCIL is planning to take loans of around USD 2 billion (INR 8,200 crore) from the World Bank and USD 1 billion (INR 4,100 crore) from the Manila based Asian Development Bank.
PGCIL drew the first tranche of USD 400 million (INR 1,640 crore) from the World Bank in December 2006 and is considering availing the second tranche of USD 600 million (INR 2,460 crore) in 2007. The USD 1 billion loan from ADB is aimed at part financing the national grid project.
Indian major ports facing acute shortage of pilots
Mr Thiru TR Baalu union minister of shipping, road transport and highways said that major port trusts, except Visakhapatnam, Tuticorin and Paradip are facing shortage of pilots affecting the pilotage of vessels.
Mr Baalu added that some of the pilots working with the major port trusts are being attracted away to work in the privately operated ports in India, foreign ports and shipping lines on competitive terms and conditions.
Meanwhile, Indian Ports Association has constituted a committee to propose model terms and conditions for hiring retired pilots as well as pilots to be employed on contract basis in major ports. Government has also constituted a pay revision committee to review the pay and service conditions of the employees of major port trusts including pilots.
Adani to invest INR 1,260 crore for container trains and ICDs
BL reported that Adani Group would invest nearly INR 1,260 crore to operate container trains, for which it has obtained a license from Indian Railways and establish rail linked inland container depots at 10 places across India for domestic and international trade. As per report, Inland Conware Private Limited would invest nearly INR 938 crore in inland container depots and Adani Logistics Limited would invest INR 322 crore in container trains.
Inland Conware Private Limited proposes to develop inland container depots as logistic hubs and provide synergy with the container terminals at Mundra Port and the proposed container train operations. Each inland container depots will have three sections, a non bonded rail side area, a bonded area housing warehouses, an open stuffing & de stuffing areas and a non bonded area having warehouses. Initially, the depots would be set up at Patli, Palwal, Chawapail, Kila Raipur, Ludhiana and Kishangarh. The next phase would involve development of additional inland container depots in important cargo centers such as Ahmedabad, Mumbai, Kolkata, Chennai, Bangalore, Coimbatore and Nagpur subject to land acquisition.
Adani would operate container trains on category I routes, ie from Mumbai Port to locations in the NCR and beyond. Adani had also entered into a concession agreement in January 2006 with the Railways for 20 years, with a non exclusive right to operate its container trains and determine and collect fees from its customers. It proposes to acquire 20 rakes initially and has already placed orders for importing 3,600 wheel & axle sets, which would then be sent to wagon fabrication of the rakes.
Official sources said that transportation and logistic facilities for both export and import and domestic cargo, equipped with modern technological facilities, would be provided. The project is expected to be fully operational by March 2009.
Lease renewal by states effecting SAIL mining expansion plans
ET recently reported that a majority of Steel Authority of India Limited’s iron ore mining leases have expired some about 10 years ago and are yet to be renewed by the respective state governments.
Mr G Ojha director personnel & in charge of raw materials division and corporate planning of SAIL said that “We have 25 mining leases across Chhattisgarh, Orissa and Jharkhand. But a majority of our leases have expired but are being run on a deemed extension basis. In some cases, the lease has expired nearly 10 years ago and inspite of applying for renewal, the state governments are yet to take any decision. As a result of this uncertainty, we are unable to make any concrete plans for mine expansion.”
SAIL has earmarked INR 2,500 crore to raise its iron ore capacity to 29.5 million tonnes by 2011-12 from 17 million tonnes currently to match its plans to boost hot metal capacity to 23 million tonnes. As per report, under its corporate plan for 2011-12, SAIL has decided to invest in the following mines
1. Chiria mines to raise its total output to 7 million tonnes
2. Kiriburu mine from 4.5 million tonnes to 5 million tonnes
3. Meghahatuburu mine from 4.3 million tonnes to 5 million tonnes
4. Bolani mine from 4.2 million tonnes to 8 million tonnes
5. Barsua mine from 2.1 million tonnes to 3 million tonnes
6. Gua mine from 2.4 million tonnes to 4 million tonnes
7. Kalta mine from 0.9 million tonnes to 1.6 million tonnes
CESC to raise INR 2,000 crore through term loans
RPG Group’ spower utility firm CESC announced that it has received shareholders approval for rising over INR 2,000 crore through term loans from various financial institutions like Infrastructure Development Finance Company, Industrial Development Bank of India, ICICI Bank, UCO Bank or any public financial institutions.
CESC said that its board is authorized to mortgage its assets to IDFC for two term loans of INR 58.88 crore and INR 65 crore. In addition, CESC expects to avail two terms loans of INR 50 crore and INR 200 crore by mortgaging its assets from IDBI. CESC is also planning to mortgage its assets in favor of ICICI Bank for foreign currency loans of USD 20 million, USD 15 million and USD 50 million. Whilst from UCO Bank it would avail a term loan of INR 200 crore. It is also planning to raise INR 150 crore through term loans from Punjab National Bank. Also, from any public financial institution it plans to rise up to INR 1,000 crore for any purpose by way of term loan, foreign currency assistance, debentures or non fund based working capital facilities.
India and Nepal to finalize hydropower project soon
Mr Sushilkumar Shinde union power minister recently informed the lower house of India Parliament that India and Nepal, under the 1996 Mahakali Treaty, have agreed to jointly develop the 5600 MW Pancheshwar multipurpose project on the Mahakali river and are engaged in finalizing the detailed project report of the project.
Mr Shinde added that a joint project office has been established in Nepal with Indian assistance to carry out field investigations for preparation of the detailed project report for 3300 MW Sun Kosi Sapta Kosi project and preliminary discussions have also been held on the feasibility of Naumure hydroelectric project.
NPCL faces protest by villagers for WB project
Statesman News Service reported that the residents of Bamunia, Majilapur, Nayaput and several other villages in and around Haripur under the Contai subdivision of Midnapore East are heading to a showdown with the administration, in order to protest against the establishment of the proposed nuclear power station at Haripur.
The local Trinamul leaders organized a meeting at Contai recently to chalk out a blueprint of the agitation, which is to be launched. The villagers also attended the meeting. Whereas the leaders of the Haripur Paramanu Bidyut Prakalpa Pratirodh Andolan Committee have warned that their agitation would be stronger than the one in Nandigram.
Mr Debashis Shyamal convener of Andolan Committee’s said that “The residents of the area have decided to intensify their agitation as the NPCL is determined to set up a 6,000 MW nuclear power project at Haripur. People have become more aware of the negative impacts of the nuclear power around the world.”
The locals started the agitation in November last year when a team of the Nuclear Power Corporation of India Limited visited Haripur. The NPCL authorities had to return from the site after confronting a demonstration.
MMK to set up steel processing facility at St Petersburg
MMK announced that Mr Valentina Matvienko governor of St Petersburg and Mr Victor Rashnikov president of MMK have signed an Investment Agreement to build a stamping plant and a service center at St Peterburg in Russia. Investments in the construction of the stamping plant will total RUB 3 billion (USD 117.17 million).
Mr Rashnikov chairman of the board of directors of OJSC MMK said that "At the initial stage, up to 2010, it is expected that that the plant will process a total of 125,000 tonnes of steel per year. Further on the capacity may be expanded to 300,000 tonnes per year. This project is in line with the strategic priorities of our Company as it will allow to strengthen our presence in the North West Region add more value to our products and ensure maximum satisfaction of the customers' needs."
MMK said that products of the new plant which will comprise steel sheet blanks, stamped panels and stamped and welded parts, are intended for the manufacturing of car bodies at the assembly plants of such companies as Ford, Toyota, General Motors and Nissan etc, which are already in operation or under construction in Russia, and also as components for white goods manufactured in Russia or abroad at the plants of Bosch-Siemens, Electrolux and others. Products of the new service center will target the construction sector, mechanical engineering, ship building and other industries in Saint Petersburg and the Leningrad Region. Direct supplies of high quality sheet steel from the Magnitogorsk Iron and Steel Works and their processing at the plant and the service center will provide the synergy required to meet the requirements of steel consumers in the best possible way.
This August MMK acquired a 75% stake in the St.Petersburg based company ZAO Intercos-IV, which is in line with MMK’s strategic plans of becoming a supplier for the automotive industry. ZAO Intercos-IV., a company set up in St.Petersburg in 1992, is a manufacturer of large size stamping dies weighing up to 70 tons and stampings for the automotive and white goods sector, with an extensive clients' base, expertise, required equipment and proven process know how.
POSCO lowers SS price by 12% to 13% for August shipments
Market Watch reported that POSCO has lowered the domestic price of its hot rolled stainless steel products by 13% last month due to weak nickel prices.
A spokeswoman of POSCO said that POSCO cut the hot rolled stainless steel price to KRW 3.5 million (about USD 3,700) per tonnes in August 2007 from KRW 4.0 million in July 2007. The price cut for hot rolled stainless steel, mainly used in automobiles, medical equipment and building construction will be retroactively applied from August 13th 2007. She added that “We have decided to cut the price to help activate the frozen stainless steel market.”
POSCO also lowered the price of cold rolled stainless steel products by 12% to KRW 3.77 million per tonnes from KRW 4.27 million. It said it has cut stainless steel prices four times and raised prices five times in the YTD.
The price of nickel a key material used in the manufacture of stainless steel products slid to USD 29,400 a tonnes recently on the London Metal Exchange after setting a record high in May 2007 of USD 51,800 per tonnes.
Sinosteel and Rio Tinto extend Channar iron ore JV
Interfax China reported that Sinosteel Group and Rio Tinto inked a framework agreement at Perth in Australia, to extend the term of their 20 year JV for Channar iron ore project.
The Channar iron ore mine, located in the Pilibara region of Western Australia, is a strip mine containing high grade 63.5% iron ore. The mine has a current output capacity of 11 million tons of iron ore per annum. Sinosteel originally teamed up with Rio Tinto on the Channar project in 1987. Rio Tinto holds a 60% stake in the joint venture and Sinosteel holds the remaining 40% stake. Sinosteel previously signed an agreement with Rio Tinto to off take a total of 200 million tons of iron ore from the mine to supply the Chinese market.
Mr Wang Tiezheng vice president of Sinosteel Trading Co said that "The agreement extends the joint venture project between Sinosteel and Rio Tinto as well as a previously signed off take agreement, for an additional five years."
Chinese iron ore demand spurs conversion of tankers into bulk carriers
It is reported that dozens of old tankers are being converted into bulk carriers for China as shipyards around the world fail to meet demand for new vessels despite record freight rates for hauling raw materials like iron ore. It takes only about six months to complete such conversions while it would take four years to five years for a new bulk carrier to be delivered if it were ordered today.
As per reports, the dry bulk market could easily digest the additions as it faced a serious shortage due to surging demand for transporting iron ore. The conversion, on the other hand, might help clear an overhang in the tanker market.
Industry officials said that docks, mainly in China, are turning single hull very large crude carriers into very large ore carriers instead of refurbishing them as double hull very large crude carriers by a 2010 deadline to meet safety regulations. While rates for dry cargo have climbed nearly 70% so far this year to new records, tanker rates have lost about 40%. Single hull crude carriers are trading at discounts to double-hull crude carriers as they are being phased out.
Mr Li Jian Xiong of Cosco said that "More tankers are being converted into dry bulk carriers. I think there'll be about 40 in the next two years." Other officials estimated there were 25 to 30 single hull tanker candidates worldwide that could be given a new life as huge bulkers. However, it was still to be seen if all could be realized as dry dock conversion capacity is limited.
Mr Masafumi Yasuoka of Mitsui OSK Lines said that "We are also considering such conversions as we have single-hull tankers.” He added that but we haven't made up our mind quite yet as shipyards is also in short supply. Mitsui has one of the biggest fleets of ships in the world.
The officials calculated it would cost up to USD 30 million to turn a crude carrier of about 260,000 deadweight tons into a bulker of about 230,000 deadweight tons. That is larger than the largest traditional bulk carriers, which are capable of carrying from 140,000 to 200,000 tonnes of iron ore or coal. After the conversion, the crude carriers would have another 10 years as ore carriers hauling iron from Brazil to China, which is constructing several deep ports to accommodate such ships.
SA tribunal fines Mittal Steel SA ZAR 692 million
It is reported South Africa competition tribunal has imposed a staggering ZAR 692 million fine on ArcelorMittal SA for contravening the Competition Act by abusing its dominance and charging excessive prices for flat steel.
The fine is the largest imposed by the tribunal in its nine year history and represents 5.5% of the ZAR 12.7 billion in sales of flat steel recorded by Mittal Steel SA in the 2003 financial year.
The tribunal also imposed certain behavioral remedies on the steel maker. Those are aimed at reducing the segmentation that Mittal SA's pricing regime has created in the market for flat steel products. An example of the segmentation is the fact that Macsteel International receives flat steel products from Mittal SA at prices significantly lower than those charged to other steel merchants.
The tribunal said that price fixing through the manipulation of supply is, without doubt, the worst contravention of competition law and principles, and this causes considerable damage to customers of the affected products and to the structure and fabric of the economy.
Mr Rick Reato CEO of ArcelorMittal SA said that "The company will consider the judgment with its advisers and assess its full impact."
MMK to boost stake in FMG
Magnitogorsk Iron and Steel Works announced that it has applied to Australia's authorities for permission to boost its share in the mining company Fortescue Metals Group Limited.
Mr Vladimir Shmakov VP of MMK made the announcement during a conference call on Monday that the company was looking into this possibility. MMK had already increased its stake in Fortescue Metals Group Limited from 4.71% to 5.37% in August 2007. The amount of the deals was not revealed.
Kunming to build a long product plant
YIEH reported that a new integrated mill with the year capacity of 500,000 tonnes is to be built by Kunming Iron & Steel located in southwestern China. The main production of this new mill will be steel long products and this construction is helpful for Kungang to develop the local iron ore mine for securing material sources.
At the same time, the other new plate mill with capacity of 5 million tonnes is under the construction, which is expected to be commissioned by year 2010.
Kunming Iron & Steel at present produces 1 million tonnes of HRC line and 600,000 tonnes of CRC line per year, together with 150,000 tonnes capacity of HDG line and 100,000 tonnes capacity of color coated line per year.
Minnesota Steel gets EIS permits
It is reported that the Minnesota Department of Natural Resources and the US Army Corps of Engineers have accepted findings of Minnesota Steel’s environmental impact statement and issued wetlands and water quality permits for the USD 1.6 billion iron ore mining, processing and steel making facility planned for Nashwauk. Mr Mark Holsten Commissioner of DNR signed the adequacy decision, a formal acceptance of the EIS on August 10th 2007 the US Army Corps of Engineers signed its record of decision on August 30th 2007.
The environmental impact statement contains exhaustive research on the potential environmental impacts of the proposed facility. Findings served as the basis for the of air, water and wetland and mining permits.
Mr Joseph C Bennett chairman of Minnesota Steel’s board of directors said that “Minnesota Steel has worked diligently to ensure that our facility will reflect our commitment to being good environmental stewards. He added that commitment is reflected in the thorough research and findings contained in the EIS.”
Mr John C Elmore president and CEO of Minnesota Steel’s said “Since this process began several years ago, Minnesota Steel has dedicated the human and financial resources necessary to ensure that all environmental questions about our project are resolved. We have worked cooperatively with federal and state agencies and with stakeholders to ensure that our facility will meet or beat all applicable environmental standards.”
Minnesota Steel will be the first steel making facility ever on Minnesota’s famed Iron Range, which for generations has sent iron ore to be made into steel out of state. Minnesota Steel will be the first facility in North America to integrate iron ore mining and processing and steel making on one site a first that carries significant environmental benefits including a 30% energy savings.
Atlas signs 5 year nickel leterite supply deal with BHPB
Thomson Financial reported that Philippine listed Atlas Consolidated Mining and Development Corp subsidiary Berong Nickel Corp has signed a 5 year laterite ore supply contract with Queensland Nickel Pty Ltd, a BHP Billiton company.
The contract involves up to 500,000 wet tonnes per calendar year at a nickel grade of greater than 1.5%. But the financial details of the contract were not disclosed.
Atlas in a statement said that the first shipment under the contract is scheduled for loading at Berong on the western island of Palawan on September 21st 2007. It added that negotiations for additional long term contracts with other buyers of Berong nickel, including several Chinese customers, are continuing.
Atlas said that “Notwithstanding the recent falls in nickel prices and reports of excess laterite ore stocks in China, the market for higher grade laterite ores similar to that shipped from Berong remains robust.”
Mine production at Berong reported to be the fourth largest nickel laterite site worldwide is estimated to reach over 850,000 wet tonnes in 2007.
Nucor appoint Mr Ferriola as COO of steel making operations
The board of directors of Nucor Corporation has elected Mr John Ferriola Chief Operating Officer of Steel making Operations effective September 30th 2007. Mr Ferriola who had been executive vice president in charge of the Nucor's sheet plate and beam operations, will assume direct responsibility over all of the company's steel making operations and report to Mr Dan DiMicco chairman, president and CEO of Nucor
Mr Ferriola joined Nucor in 1991 as manager of maintenance and engineering at the company's Jewett in Texas bar mill. He served as general manager at three Nucor facilities at Grapeland in Texas, Norfolk, Nebraska, and Crawfordsville, Indiana, before joining the corporate office as executive vice president in 2002.
Mr DiMicco said that "Nucor has grown to the point where the position of chief operating officer makes sense. With Mr John focused on operations, I'll be able to focus even more of my energy on domestic and global strategy, emerging technologies, trade and manufacturing policy all critical for our next phase of growth at Nucor. Placing our steel making operations under Mr John's leadership is a great move for us. Mr John has done a tremendous job growing several critical steel making operations and entering new markets. In addition, his promotion allows us to move two exceptional division leaders into critical roles in the corporate office."
ICG begins commercial production at Beckley mine
International Coal Group announced the commencement of commercial coal production at its new Beckley Pocahontas Mine at Eccles in West Virginia.
The Beckley Pocahontas mining complex is International Coal Group’s third new mining complex to go into production over the last 12 months. Construction on the Company’s new Tygart No 1 Mine in Taylor County, West Virginia, is expected to begin in 2008 with initial production expected in mid 2009. At full production in mid 2008, the Beckley complex is expected to produce 1.4 million tons annually of high quality, low volatile metallurgical coal for both domestic and export steel markets. The Company estimates that the Pocahontas No. 3 seam contains approximately 37 million tons of recoverable coal reserves.
Mr Ben Hatfield president & CEO of International Coal Group said that “Growing international demand for high quality metallurgical coal and stable domestic demand have resulted in substantial upward pricing pressure for Beckley type coal. The ICG Beckley complex is coming online at the right time to take advantage of current market conditions. This new mining complex will also play a major role in the Beckley area economy, eventually employing approximately 180 miners, preparation plant workers and office personnel.”
ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 12 active mining complexes, of which 11 are located in Northern and Central Appalachia and one in Central Illinois. ICG’s mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers throughout the Eastern United States.
Vietnam steel sector plan outlines USD 12 billion investment
According to a 2007-2025 Viet Nam’s steel development plan, approved by the prime minister of Vietnam on September 4th 2007,Viet Nam’s steel sector needs between USD 10 billion to 12 billion for its development between 2007 and 2025.
The plan requires the sector to meet all domestic demand by 2025 and produce some more for export. Viet Nam is to forecast to require between 10 to 11 million tonnes of steel by 2010 and 24 to 25 million tonnes by 2025 to satisfy huge demand from property and infrastructure development.
Towards these goals, the plan has singled out key projects for priority investment in the 2007-2015 period, including two steel complexes in northern Lao Cai and central Ha Tinh provinces, the Dung Quat Steel Complex, several high quality rolled steel and zinc plated steel plants, and the second phase of a project to expand the Thai Nguyen Iron and Steel Company.
Han’gang succeeded in L320 line pipe steel trial production
It is reported that Han’gang succeeded in trial production of new high value added product L320 line pipe steel. The output of new L320 line pipe steel amounted to 6,400 tonnes and the materials all meet users’ requirements. This is the first time for Han’gang to trial produce low carbon, high manganese and niobium micro alloying hot rolled plate.
The trial production helped Han’gang find the best process for L320 line pipe steel and will contribute to the development of L360 line pipe steel.
General Steel Holdings announces 3 new board members
General Steel Holdings Inc has recently announced that the election of three new members to its board of directors.
Mr Zhang Dan Li is currently the president and chairman of Shaanxi Longmen Iron and Steel Company Ltd. He also currently serves as the G M of the recently announced 2.5 million ton capacity JV between General Steel and the Longmen Steel Group also located in Shaanxi province and worked for more than 30 years in the steel industry in the central region of China. He received his bachelor's degree from the Xi'an University of Technology and Architecture in 1982.
Mr Du Qing Hai is currently a General Engineer for Beijing Industrial Design and Research Institute. In the past forty years, he has been C E and section chief at both Baotou Design and Research Institute of Iron and Steel and the Design Institute of Capital Iron and Steel. He holds four patents for elements of blast furnace design and has either led or participated in the design of 20 steel mill projects. Mr Du Qing Hai received his bachelor degree in Iron and Steel Metallurgy from the Beijing University of Science and Technology, formerly known as Beijing University of Iron and Steel Technology, in 1963.
Mr Fred Hsu is currently the MD of Sagem Communications China part of Safran Inc a global 500 company based in Paris, France. He holds considerable expertise in corporate finance having served over 20 years in senior finance and accounting positions including experience as the CFO with leading multi national companies operating in greater China. He is a founder and contributing editor to 3rd Stone Investment Research newsletter. Mr Hsu received a BBA degree in International Trade and Finance from Louisiana State University in 1987 and a MBA from the American Graduate School of International Management in 1988. He is bi-lingual in Chinese and English.
Mr Henry Yu chairman and CEO of General Steel said that "We are very pleased to welcome these three business professionals to our Board of Directors. They represent a wealth of experience, proven depth of knowledge and expertise that will be in-valuable to us as we move to the next stage of growing our company into one of the largest non-government owned steel companies in China."
General Steel Holdings, Inc headquartered in Beijing operates a diverse portfolio of Chinese steel companies. With 3 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including reinforced bar hot rolled carbon and silicone sheet and spiral weld pipe. The company has steel operations in Shaanxi province Inner Mongolia province and Tianjin municipality.
MSC Napoli bow cut into steel scrap
BBC News reported that work has begun to cut up the bow half of the former cargo ship MSC Napoli in a dry dock at Belfast. The ship damaged in storms in January 2007 was grounded off east Devon and finally split in two in July 2007.
The bow was towed to the Harland and Wolff shipyard where it will be demolished over 15 weeks, recycled and possibly used to build other vessels. Damaged sections are being removed and sent off for analysis to determine what happened during the storm. The remaining stern section of the vessel remains grounded near Sidmouth and is expected to be taken away in one piece by November.
The Dutch team who has overseen the salvage operation so far was awarded the contract to do the work. The salvage operation has cost more than GBP 50 million. The stern is set to be removed on a giant barge to limit further environmental damage. Controlled explosions had to be used by the Maritime and Coastguard Agency and the MoD to split the ship in two.
The MSC Napoli was damaged in storms while sailing from Antwerp to South Africa. Its crew was rescued safely. The 62,000 tonnes cargo vessel was carrying about 2,300 containers, of which about 100 went overboard and 58 were washed ashore, leading to a scavenging and looting spree.
Ukrkoks warns of reduced coke supplies to steel mills
Ukrainian Journal recently reported that Dnipropetrovsk based association of Ukrainian coking companies Ukrkoks has warned of a possible worsening in the situation with coke supplies to Ukrainian steel mills due to plans of the state railway administration Ukrzaliznytsia to cut imported coking coal shipments in September.
The report cited Mr Anatoliy Starovoit director general of Ukrkoks as saying that Ukrzaliznytsia has not approved a shipment schedule for September. He added that OAO Russian Railways has also cut coking coal shipments to Ukraine due to a shortage of railway cargo cars for domestic shipments.
Increasing production at Usiminas Mecânica
It is reported that Usiminas Mecânica a Usiminas System’s company with an all time high sales volume of more than BRR 1 billion in 2006 it continues to keep a strong production rate in 2007 with large projects under way in Brazil.
Usiminas said that among such projects three started in April and are expected to finish during the second half this year. Usiminas Mecânica is fabricating around 2,500 tonnes of columns and runway beams for Gerdau Açominas’ Continuous Casting Plant expansion at Ouro Branco in Minas Gerais.
Usiminas added that in its Electrowelded Shape Factory in Taubaté, São Paulo, the Company is manufacturing part of the structures for Usicentro’s new transshipment building, in a joint work with CODEME, São Paulo.
Another important contract covers the supply of columns and beams to WTorre Engenharia for the office building Klabin de Papel e Celulose is constructing in São Paulo. Again, this supply involves a partnership between Usiminas Mecânica and CODEME.
