SAIL market capitalization crosses INR 1 trillion

It is reported that Steel Authority of India Limited's market capitalization has crossed INR 1 trillion, making it the first Indian metal company to achieve this distinction.

It is noteworthy that it has taken just about 8 months for SAIL's market cap to go up from INR 50,000 crore to INR 100,000 crore.

SAIL is today viewed as a company with strong fundamentals, continuously improving its performance with robust growth plans and forward looking management initiatives.

JSW Steel Q2 net profit up by 47% YoY

JSW Steel Limited has posted a net profit after tax of INR 5112.30 million for the July to September 2007 quarter up by 47.62% YoY as compared to INR 3463.00 million for July to September 2006 quarter.

JSW’s total income has been reported at INR 26187.70 million for July to September 2007 quarter up by 18.76% YoY as against INR 22050.20 million for the July to September 2006 quarter.

The consolidated results are as follows:
JSW Steel Limited has posted a net profit after tax after share of profit of associates of INR 4932.40 million for July to September 2007 quarter. Total income is INR 26421.50 million for July to September 2007 quarter.

Bolivian senate to approve JSPL’s El Mutun project

BNamericas reported that Mr Alberto Echazu mining and metallurgy minister of Bolivia has presented the senate with details of the project to develop the El Mutun iron ore deposit as part of the senate's agenda to discuss and approve the contract for development of El Mutun signed between Jindal Steel & Power Limited and state steel company Esem.

Mr Hugo Miranda a spokesperson from mining ministry of Bolivia said that the senate would make discussion of the contract a top priority. As such, speakers at October 23rd session included Esem president Mr Walter Chavez and the president of Bolivia's state miner Comibol.

It is noted that the agreement between JSPL and Esem was passed in September 2007 by the lower house of congress and now the senate hopes to approve it by month end.

JSPL was awarded 50% of El Mutun in a bidding process in June 2006 and signed the contract to develop it in July 2007. The project includes industrial development of the deposit and the installation of a steel plant to produce 1.7 million tonnes per year of sponge iron and 1.4 million tonnes per year of rolled steel bound for domestic and foreign markets.

POSCO seeking police help to enter project site

Statesman News Service reported that POSCO has sought the permission of the Kujang police to access their proposed site in a desperate attempt to start some activities on the ground.

With the company writing a letter to the Kujang police seeking permission, the ball is in the court of the government. In fact, the company has become sandwiched amidst the contradictory directions of the state government.

For instance, Mr Naveen Patnaik chief minister of Orissa and top bureaucrats have been asking POSCO to move to the villages and explain the people about welfare measures. But on the other hand, the local administration has been repeatedly advising the company officials not to enter the area till normalcy is restored.

A commitment was made by the police to the anti POSCO activists that POSCO representatives would not enter without prior intimation or permission, to secure the release of 4 POSCO employees, held captive by the anti POSCO activists recently.

JSW board approves SISCOL amalgamation

JSW Steel Limited announced that its board of directors at its meeting held on October 25th 2007 has considered and approved a Scheme of Amalgamation of Southern Iron and Steel Company Ltd with JSW Steel Limited and their respective shareholders and creditors.

The salient features of the Scheme are as under:

(a) Appointed Date for the Amalgamation is April 1st 2007

(b) Pursuant to the scheme, one equity share of INR 10 each of JSW Steel Limited will be issued to the equity shareholders of SISCOL for every twenty two equity shares of INR 10 each held by them in SISCOL and one redeemable preference share of INR 10 each of JSW Steel Limited will be issued to the preference shareholders of SISCOL for every one redeemable preference shares of INR 10 each held by them in SISCOL and the conversion price for outstanding convertible instruments in SISCOL will also be adjusted in the proportion of the swap ratio.

(c). The Share Exchange Ratio is based on the Valuation Report and the recommendations made by Price WaterHouse Coopers, valuers appointed to value the business of the two Companies.

(d). The Scheme is subject to requisite consent, approval of the requisite majority of the shareholders, lenders, creditors of JSWSL & SISCOL, the relevant Stock Exchanges, the Bombay High Court and the permission or approval of the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.

(e). The Board of SISCOL has also met on October 25th 2007 independently and has approved the Scheme.

CIL eying coal blocks in Australia and Canada

It is reported that Coal India Limited is betting big on Australia and Canada in its quest for acquiring exploration acreages and equity in producing mines overseas and is looking for office set ups in those countries, even as its proposal for floating an overseas investment arm is pending for approval. While the government fine tunes the Coal Videsh proposal CIL aims to acquire overseas stake in coal blocks.

As per report, CIL has identified specific deals in both countries which envisage minority equity participation to buy out exploration permit for coal and due diligence in terms of on site analysis in data room and examination of legal documents would start shortly.

The report cited a CIL source as saying that CIL feels the need for office set ups in these countries for following up negotiations, networking and helping out with procedural formalities. The source said that "A representative or office set up is required to maintain the confidentiality of bid value while submitting the binding offer, which necessitates that the same is submitted in person by CIL or through its authorized representative."

The move is part of Coal India's strategy to enhance coal availability in India through a mix of higher domestic production and sourcing from offshore assets.

BEML to supply 156 SS metro cars to DMRC for INR 1146 crores

Bharat Earth Movers Limited announced that it has secured an order from Delhi Metro Rail Corporation for manufacture and supply of 156 standard gauge stainless steal metro cars required for 2nd phase of DMRC for INR 1144 crores.

This order is the single largest historic contract BEML has bagged. BEML is also looking forward for an additional order of 36 Metro Cars from DMRC.

BEML's Rail & Metro Business Group has tied up with IL&FS for working as a consortium to bag metro projects in the country and BEML will supply rolling stock, spares and after sales service for metro projects.

BEML & ILFS combine is also exploring the possibility to work on the City Centre to International Airport segment of Metro project at both Hyderabad and Bangalore and possibly other projects on a BOOT basis. BEML is also exploring the avenues to establish a JV with an International player for manufacture of various types of bogies in India.

CMPDIL to complete Moonidih CBM project by December

It is reported that Coal India Limited’s subsidiary Central Mine Planning and Design Institute Ltd is expecting completion of its coal bed methane development project at Moonidih in Jharia coalfields by December 2007 after it successfully carried out the hydrofracturing in its first production well on October 16th 2007.

Mr TK Samanta head business development of CMPDIL said that “Two more hydrofracturing will be done in the same hole during the first week of November 2007. Methane gas production is likely to start from the borehole by middle of December 2007.”

CMPDIL has already procured the equipment necessary for commercial exploitation of coal bed methane. Launched in 1997, the UNDP GEF funded coal bed methane project was undertaken by CMPDIL to promote the production and commercial utilization of coal bed methane as a viable energy source and making future coal mining activity safer. The total project cost was estimated to be USD 19.2 million, out of which approximately USD 10 million was funded as GEF grant. Originally slated for completion in 5 years, the project has undergone several rounds time over run.

JSW forms 2 SPV’s in US for acquired assets

JSW Steel Limited announced that its board of directors at its meeting held on October 25th 2007, in line with their decision to acquire Plate Mill, Double Jointing & Coating and Pipe Mill Facilities in USA through wholly owned subsidiaries and step down subsidiaries, announced that following two special purpose vehicles have been incorporated

1. JSE Steel Holding (USA) Inc
2. JSE Steel (USA) Inc

The above Companies have been taken on record by the Board as the subsidiaries of JSW Steel Limited.


MIDDLE EAST

Mr Munda calls for curbing iron ore exports

Mr Arjun Munda former chief minister of Jharkhand has expressed apprehension that India will have to import iron ore in next few decades if the rampant export of the raw material was not stopped forthwith.

He said that "The proposed national mining policy being framed under the pressure of the Left parties is intended to promote export of iron ore to China."

Mr Munda said that India has about 20 billion tonnes of iron ore deposit, which will not be sufficient to meet the domestic requirement in the next 2 to 3 decades. He said that “Iron ore deposit the country has at present could meet the domestic requirement for the next 2 to 3 decades. India will have to import iron ore if no step was taken immediately to put a rein over the rampant export irrespective of the quality grade of the ore.”

Mr Munda said that apart from growing industrialization, the development has been taking place in almost sphere including infrastructure required large quantity of steel.

Mr Munda charged that the UPA government had failed to check the rampant export of iron ore, which is in demand in view of the development taking place across the globe and announced that BJP would take to streets and launch agitation across mineral rich Jharkhand if the government implements the policy.

Krishnapatnam UMPP gets 3 bids

It is reported that the proposed imported coal based Krishnapatnam ultra mega power project in Andhra Pradesh has received only 3 bids from Sterlite, Reliance and Larsen & Toubro, though there were 9 qualified bidders for the project. Whereas, Mundra UMPP had received 6 bids and Sasan UMPP 9 bids.

The next few days will be spent in vetting the bids following which the price bids of those who cleared the vetting will be opened to determine the winner of the tariff based competitive bidding process.

Following qualified did not put their bid
1. Essar Power
2. NTPC
3. Sumitomo Corporation
4. China Light & Power – GMR consortium
5. Israel Electric Company - DS Construction consortium

Mr Anil Razdan union power secretary termed the response as reasonable, in the given situation, when there has been a sharp appreciation in the price of coal, compared to what it was when bids for the last ultra mega power projects were invited. Mr RV Shahi former power secretary also felt that three serious bids for such a large investment is not a small thing.

HZL cuts zinc prices by 4.4%

Hindustan Zinc Limited announced that it has cut its zinc prices by 4.4% or INR 6,100 to INR 131,100 (USD 3,311) per tonne effective immediately.

HZL has also reduced the price of lead by 2.8% or INR 4,600 to INR 160,400 per tonne.

Indian Railway to implement e procurement after pilot project

BL reported that Indian Railways may procure goods valued at about INR 9,000 crore through its online tendering and procurement system as it is in the process of implementing the e procurement process at 12 more places, 7 zonal railways and 5 production units. The central data centre would be located at CRIS.
1. Western Zone
2. Central Zone
3. Southern Zone
4. South Central Zone
5. North Central Zone
6. South East Central Zone
7. West Central Zone
8. Diesel Locomotive Works Varanasi
9. Rail Coach Factory Kapurthala
10. Integral Coach Factory Perambur
11. Rail Wheel Factory Bangalore
12. Diesel Locomotive Works Patiala

Including the Northern Railway, there would be 13 places where e procurement would be in use in about a year. These 13 units make annual purchases valued at about INR 12,000 crore and Indian Railway plans to cover 75% of these purchases or INR 9,000 crore through the e procurement model by targeting the high value and safety item purchases.”

As a part of the pilot project, between November 2005 and October 22nd 2007, the Northern Railway had handled 1,922 tenders online, out of which 559 tender processes have been completed and about 536 tenders are under various stages of evaluation. There were no responses for 725 tenders, most of which were uploaded during the first few months of the project when vendors were not familiarized.

The e procurement process includes placing the tender documents and inviting bids online, allowing bids to be placed online in a secure transaction environment and opening and awarding the bids online. The software application for the pilot project at Northern Railway was done by Broadvision, an e commerce software player.

In the first week of October 2007, Broadvision for software and HCL for hardware were awarded the tender to develop the e procurement system for 12 units with an expanded scope. The tender includes about INR 5 crore for the hardware required for data centre, servers, communication equipment, up linking services and annual maintenance contract. On the software side, the work comprises of 4 stages, with value for each stage pegged at about INR 7 million. This includes training, annual maintenance, online help and some system software.

Sikkim CM agrees to discuss hydel project implementation

It is reported that the Lepcha community of Sikkim has achieved a major breakthrough in the 3 month old impasse over implementation of mega hydro power projects in North Sikkim.

The breakthrough came after Mr Pawan Chamling chief minister of Sikkim agreed to directly talk to the protestors, led by the Affected Citizens of Teesta, which has the support of various other NGOs and social organizations from the Darjeeling Hills.

Mr Chamling said that “The state government is committed to protect the sanctity of Dzongu and no development work will be done at the cost of the culture, tradition and identity of the Lepchas.”

A delegation of representatives from various Lepcha associations under the banner of Dzongu Holy Land Protection Joint Action Committee met chief minister at his official residence and placed a memorandum of demands regarding the Dzongu issue, which primarily sought government protection and preservation of the traditions and customs of the primitive Lepcha tribe in Dzongu and the state generally.

The Affected Citizens of Teesta led satyagraha and hunger strike, in protest against the hydro projects is still on, which began on May 20th 2007.

Centre may extend 30% support for metro rail projects

It is reported that union government is seriously considering a proposal to enhance the viability gap funding for states to take up metro rail projects.

Mr Jaipal Reddy union minister for urban development said that that the move is aimed at encouraging the developers as such projects were not viable. He said “We are considering the proposal to increase the support to 30% from the present 20%. It is in an advanced stage.”

Mr Reddy also indicated that the Andhra Pradesh government could get one third of the project cost of the INR 9,200 crore metro projects being planned in Hyderabad.

SABIC Q3 profit up by 37% YoY

Saudi Basic Industries Corporation has posted a net profit of SAR 20.2 billion for January to September 2007 up by 42% YoY as against SAR 14.2 billion in January to September 2006.

It has also posted a profit of SAR 7.4 billion for July to September 2007 quarter up by 37% YoY as against SAR 5.4 billion July to September 2006 quarter and up by 14% YoY over April to June 2007 quarter profit of SAR 6.5 billion.

Prince Saud Ibn Abdullah Ibn Thunayan Al Saud president of the Royal Commission for Jubail and Yanbu and Sabic chairman said that "SABIC reported a SAR 29.6 billion operating profit for the last 9 months of 2007 compared to SAR 21.6 billion in the same period last year, an increase of 37% YoY. The profit per share price for the current period amounts to SAR 8.06 versus SAR 5.67 in the same period last year."

Mr Mohammad Al Mady VC & CEO of SABIC said that "Higher profits in the first nine months of 2007 reflect the improvement in the prices of most key products in line with the increase of productivity as a result of the added capacities from a number of expansion projects going on stream. These included the ethylene glycol plant at Jubail United Petrochemical Company, the reinforced steel plant at the Saudi Iron & Steel Company (Hadeed) and urea and ammonia plants at Saudi Arabian Fertilizer Company. In addition we added production from the Sabic UK Company following the acquisition of Huntman's European base chemicals and polymers business in the United Kingdom at the end of 2006."

Mr Al Mady added that "SABIC's total production during January to September 2007 stood at 40.9 million tonnes up by 13% YoY as compared with 36.3 million tonnes in the same period last year. Sales rose to 32.6 million tonnes up by 13% YoY as compared with 28.9 million tonnes in the same period last year. Revenues were SAR 86.5 billion up by 36% YoY over the revenues generated in the same period last year."

SABIC is one of the world's 10 largest petrochemicals manufacturers. It is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers, as well as the fourth largest polyolefins producer. It has about 30,500 employees.

Stroytransgaz to set up gas processing plant in Syria

Ria Novosti reported that Russian engineering and construction company Stroytransgaz is planning to start building a natural gas processing plant in Syria next week.

Mr Valery Plotnikov, the project's manager said that the Syrian government had ratified a deal to construct the USD 220 million plants with capacity of 1.1 billion cubic meters per year. No tender was held prior to the deal. The plant will be the second built by Stroytransgaz in Syria.

Stroytransgaz, partly owned by Russian energy giant Gazprom, is already building a gas processing plant with capacity of 2.5 billion cubic meters at an estimated cost of USD 210 million. It has also bid to reconstruct a refinery in Baniyas, a project worth over USD 1 billion and having a capacity of 6 million metric tons a year.

Stroytransgaz is engaged in the construction of oil and gas facilities in 15 countries. It said that it had started building an oil pipeline in Saudi Arabia called Sheyba Abkayk oil pipeline, whose length exceeds 200 kilometer and is expected to be completed in 18 months. The construction will be carried out in the world's largest desert, Rub al Khali. The oil pipeline project worth more than USD 100 million is part of the undertaking to boost the carrying capacity of the existing Sheyba Abkayk pipe and will run parallel with it.

Iran to sell over USD 4 billion worth of IMIDRO shares

It is reported that over IRR 41 trillion (USD 4.3 billion) worth of Iranian Mines and Mining Industries Development and Renovation Organization’s shares will be offered in the Tehran Stock Exchange by the end of March 19th 2008.

Mr Ahmad Ali Harati Nik head of IMIDRO and also the deputy industries and mines minister said that steel, aluminum, copper, mine and cement groups are privatized. He put the organization’s current capital at over IRR 32 trillion (USD 3.4 billion).

Mr Harati Nik added that the organization’s exports fetched Iran USD 2.457 billion in the previous Iranian year, indicating a 30% rise when compared to the figure of its preceding year. Shifting to mineral explorations, he announced that investment in the sector doubled last year in comparison with its previous year.

IMIDRO ranked 2nd in terms of export among 100 leading companies in Iran. It sold IRR 93.531 trillion (USD 10 billion) worth of its products in the last Iranian year. The center sold 61%, 18%, 9%, 6%, 2% and 4% of steel, copper, mineral, aluminum, cement, and other products respectively last year.

Al Jazeera board appointed Mr SK Dash as temporary director

Al Jazeera has announced that its board has appointed Mr Shailesh Kumar Dash as the temporary director of the company and shall hold office till the next general body meeting and eligible for re election.

Al Jazeera also announced that board member Mr Buti Obaid Al Mulla submitted his resignation from the board membership and board had accepted his resignation.

Al Jazeera is a tubing manufacturer of mild steel black and galvanized round tubing’s with a plant at Sohar in Oman.

2 steel mills in Islamabad charged for pollution

Pakisan’s Daily Times reported that the Environmental Protection Tribunal of Islamabad has directed the management of two steel mills, Ittehad Steel and Potohar Steel to appear before court on for not following the directions of the Environmental Protection Agency.

According to Environmental Protection Tribunal officials, the two steel mills situated in the industrial area of Islamabad are using sub standard raw material to manufacture iron for the last many years. EPA officials, while monitoring the air ambient quality of the industrial area, found the air around these mills heavily polluted. The officials team also monitored various ambient air quality parameters such as presence of hazardous gases like sulphur dioxide, carbon mono oxide, nitrogen, methane and total hydro carbons to assess the status of ambient air in the industrial area. The results showed these two mills had been emitting hazardous gases.

The EPA had directed the management of both the factories to install efficient pollution control devices to filter the emissions and adopt the green productivity program initiated by the EPA in a specific timeframe. Failing to comply with the EPA orders, their case was referred to the EPT.

According to EPA sources, there are around 500 factories in I-9 and I-10 industrial estates, which are causing water and air pollution in the area. Out of them, 204 are manufacturing units including eight steel melting furnaces, 11 re-rolling mills, 25 flour mills, five oil and ghee mills, 31 marble cutting and polishing units and 23 metal working and engineering units, GI pipes, soap, chemical, plastic, marble, spices and printing. These factories have no proper facilities for the treatment of waste emissions. Sources said most of these factories and mills did not meet international standards and the EPA was gradually taking action against them.

Chinese yuan breaks 7.5 mark against USD

According to the Chinese Foreign Exchange Trading System, China's Renminbi broke the 7.5 mark to reach a new central parity rate of 7.4938 yuan to one US dollar on Wednesday. The accumulative appreciation since July 21, 2005, when China abolished yuan's peg to the dollar, has exceeded 8%.

Ms Tan Yaling an expert with the Bank of China said that a weakening dollar and calls from the United States and the Europe that China should allow the currency to appreciate more quickly were short term reasons contributing to the recent rise in value. Speculation ignited by rising expectations of a stronger yuan also led to the continuous appreciation of the Chinese currency.”

However, Ms Tan said the move to a more market-valued yuan should be made gradually. She said "Currency appreciation was not the key solution to China's huge surplus, which should be solved through improvement of China's economic structure over the long term.”

Data from the General Administration of Customs shows the trade surplus for the first nine months reached USD 185.7 billion exceeding the total trade surplus of USD 177.47 billion for 2006.

Chinese output of major products in January to September 2007

China metallurgical productions during January to September 2007 are as follows

In million tonnes

(Sourced from MySteel.net)

Chinese nickel pig iron output to stall in 2008

According to Toledo Mining Corp, Chinese output of nickel pig iron will stall in 2008 as prices fall.

Mr George Bujtor CEO of London based Toledo's said that China, the world's largest user of nickel, may produce about 80,000 tonnes to 90,000 tonnes of nickel contained in pig iron, the same as this year, after output doubled from 2006. He said “Production jumped up enormously this year because of high nickel prices. A subsequent drop pushed some small, speculative Chinese pig iron makers out of business.”

Mr Bujtor said Nickel has fallen 36% from a record USD 51,800 a ton traded in May as high prices put off buyers. Freight costs for a wet metric tonnes of ore have also more than doubled to as much as $50, from about USD 20 at the start of the year. Wet metric tonnes include moisture contained in ore.

Mr Bujtor said Toledo's mines are in the Philippines, the biggest supplier to China of low grade nickel ore that can be processed into pig iron containing as much as 3% nickel. As much as three tons of the ore produce one ton of the material. Mr Bujtor said Toledo may build its own processing plant near its mines on Palawan Island to reduce freight costs, with the company deciding on the technology to be used by the first quarter. He said the plant would be able to make products from concentrate containing 15% of metal to nickel cathode.

Toledo said it has tied up with two Chinese companies for a possible purchase of a steel mill in Guangxi, China. Mr Bujtor declined to identify the partners or the mill.

Tanggang to build steel plant in North Korea

It is reported that Hebei Province based Tanggang Group has signed a letter of intent with North Korea to jointly build a 1.5 million tonnes pear year steel project.

The project is likely to be set up at Kim Chaek Industrial Park in North Korea, where include two port cities Kim Chaek and Tanchon and is resource rich.

Tanggang Group after merger with Chengde Steel and Xuanhua Steel has formed annual steel capacity of 16 million tonnes. Now it is aiming for annual capacity up to 30 million tonnes and sales revenue of CNY 100 billion by 2010.

(Sourced from MySteel.net)

Baosteel to produce 28 million tonnes steel in 2007

According to Mr Xu Lejiang board chairman of Baosteel Group Baosteel may produce iron and steel 28.00 million tonnes in 2007 and realize sales income CNY 200.0 billion.

Mr Lejiang, while speaking at a meeting of 17th National Congress of CPC, said that the group realized a net profit of CNY 29.0 billion during the first three quarters in 2007.

In 2006, BaoSteel had a capacity of 23 million tonnes per year ranking 5th among the iron and steel companies in the world and realized sales income CNY 180.7 billion ranking 296th among the top 500 enterprises in the world.

Eurofer prepares 4 anti-dumping cases on China's import

It is reported that the European steel association, EUROFER has prepared to file the complaint of Chinese imports in 2 weeks.

As per report, they confirmed to ask anti dumping measures to European Commission on 4 products
1. SS cold rolled coil
2. Galvanized coil
3. Wire rod
4. Plate

European Commission will conclude if they should take action to launch the investigation.

EUROFER believes that enormous imports from Chinese create a threat to hurt EU steel producers.

HanGang to integrate its steel facilities

China’s Handan Iron and Steel Co have announced that it will combine its pickling and galvanizing facility with its cold rolling steel plant. Handan Iron and Steel Co said that the move is to boost its production efficiency and reduce the administrative expenses.

HanGang will also integrate its wire plant and section plant in the near future.

Since China government has speed up the steps in knockout the outdated steel mills output, HanGang’s integration is not only in complete accord with the policy but also help the company to have the chance to increase its sales profit in the market.

Shougang's relocation strategy

The Shougang Group has relocated its business along coastal areas, causing Shougang to play an exemplary role in further optimizing the structure of the steel industry and improving their competitiveness in China. The relocation has enormous impact on the allocation of China's steel industry as all Chinese steel enterprises were located inland or even in central cities.

Shougang Group's removal is a challenge and opportunity for the company and by taking a leading role it positively influences the national steel industry.

Mr Zhu of Shougang said that the Shougang Group is also carrying out strategic restructuring during its relocation. He explained that "First, the Shougang Group seeks to attain the most advanced technologies in the world by relocating at a new level, a big structural readjustment. This readjustment not only involves domain structure, products structure, technology structure and equipment structure, but also requires a fundamental change of the organizational structure of the company. Our business management is completely based on new types of organizations. Information technology and automation technology have been introduced. They combined closely with the modern management framework in the beginning of our structure readjustment because we are aiming at real advanced management.”

He added that “In addition, Shougang's newly established steel factory will focus on high end products, another kind of structural readjustment. We will not only set up the most advanced steel factory in the 21st century, but we are also working on planning bases in the Shijingshan District in Beijing, involving technology research and development, cultural creations including exhibition industry, modern business and entertainment. Located in the connecting areas of three districts in Beijing, these bases will greatly promote the development of the Shijingshan District, the Mentougou District and the Fengtai District, thus realizing a fundamental change of the industrial structures of older factory areas.”

Mr Zu said “Third, the Shougang Group is also transforming its other industries at the same time. Property rights reform has introduced new commercial infrastructures inside real estate and construction companies, mechanical and electrical manufacturing and other modern services in Beijing. We will reorganize our enterprise systems to build the most modern corporate systems.”

He concluded that “The competitiveness of Shougang's subsidiary industries has been greatly improved. Instead of shrinking during our relocation these industries are also experiencing a structural transformation. In addition, the management framework of the whole group is also being reorganized on the basis of new demands for competition and efficiency.”

Chinese iron ore stockpiles at ports fall to 40.03 million tonnes

Interfax China reported that Iron ore stockpiles in China's 23 major ports reached 40.03 million tonnes on October 19th 2007 down 2.49% recently while Indian concentrate stockpiles fell 3.11% to 6.24 million tonnes.

The delivery price of Indian grade 63.5% concentrate at China's Tianjin Port climbed to CNY 1,350 (USD 179.87) per tonnes recently up between CNY 50 (USD 6.66) and CNY 70 (USD 9.33) recently while the price of grade 62.5% rose to CNY 1,250 (USD 166.54) per tonnes. The delivery price is a combined charge including the iron ore CIF prices, value added taxes and port charges.

The average price of Brazilian grade 64% fine stood at CNY 1,450 (USD 193.19) per tonnes in China's major ports recently while that of Brazilian grade 64% lump reached CNY 1,450 (USD 193.19) per tonnes up CNY 70 (USD 9.33) per tonnes from the previous week. According to the latest information the freight rate from Brazil's Tubarao Port to Beilun or Baoshan ports stood at USD 88.5 per tonnes on October 19th 2007 down 0.01% from October 12th 2007 while freight rate from Western Australia to Beilun or Baoshan ports stood at USD 38.14 per tonnes on October 19th 2007 down 0.34% recently.

Jinchuan gears up for IPO

Interfax China reported that Jinchuan Group, China's largest nickel producer, is preparing to carry out an initial public offering in the near future.

Jinchuan Group's board approved an asset restructuring plan as early as 2003, but only recently set a timetable for the IPO. The company is currently looking for a financial consultant to underwrite the IPO, according to the announcement.

Mr Ma Jinchuan Group's spokesperson told Interfax recently that "Jinchuan intends to take advantage of the current prosperity in the domestic stock market, and launch an IPO as soon as possible. However, the official declined to provide any further details regarding the IPO.”

Mr Li Yusheng analyst for Antaike told Interfax that "The IPO is expected to help Jinchuan raise more funds for the company's mineral resource development projects, although that is not to say that the company has insufficient funds at the moment. He added that the further sourcing of long-term and stable resources from both home and abroad has become on of the company's major development strategies.”

Jinchuan Group has a current annual production capacity of 150,000 tons of nickel, 400,000 tonnes of copper, 10,000 tonnes of cobalt, 8 tonnes of gold, 150 tonnes of silver and 3,500 kilograms of platinum group metals. Jinchuan Group expects to generate a sales revenue of CNY 50 billion this year up 41.24% from last year's CNY 35.4 billion (USD 4.72 billion), as well as generate a total turnover of USD 2.5 billion from international trade. Jinchuan Group intends to have sales revenue in excess of CNY 100 billion (USD 13.3 billion) within the next 5 years.

Chinese steel product output in January to September 2007

China steel product output in January to September 2007 is as under

In million tonnes

In million tonnes

In million tonnes

(Sourced from MySteel.net)

Coalmine blast kills in Chongging kills 1 and 10 missing

It is reported that 11 people were working underground when the gas explosion occurred in the mine pit located near the southwestern city of Chongqing and 1 person was killed and 10 are missing.

Another four people, carrying out safety inspections in the mine when the accident occurred, managed to escape unscathed.

Further details are not available

Mechel Izhstal to modernize bar mill

It is reported that Siemens Metals Technologies will modernize the existing bar mill of Izhstal OAO located at Izhevsk in Udmurt Republic of Russia. The mill is scheduled to start up in the fourth quarter of 2008.

Siemens scope of supply for this upgrading project includes a new billet reheating furnace, mill equipment, the cooling line, electrics and automation in addition to supervision and training services. 12 new stands of the Red Ring type, arranged to enable no twist rolling, as well as a thermo mechanical line will be installed. The cooling facilities include a 66 meter long cooling bed equipped with automated cutting, counting and bundling systems.

Izhstal is a subsidiary company of Mechel a leading Russian mining and metals company which produces coal, iron ore, nickel, steel and rolled products. At the Izhstal mill site, approximately 300,000 tons of bars, wire rod and light sections are produced per year, comprising constructional, tool, high speed and stainless steel grades.

IMF forecasts Russian GDP growth at 7% in 2007

RIA Novosti reported that the new International Monetary Fund World Economic Outlook report said Russia's GDP will grow by 7% in 2007.

The report said "China's economy gained further momentum, growing by 11.5% while India and Russia continued to grow very strongly. These three countries alone have accounted for one-half of global growth over the past year."

IMF said that stable growth continued in other emerging market and developing countries including African nations with low incomes. The report continued saying that "growth in the euro area and Japan slowed in the second quarter of 2007 after two quarters of strong gains."

The report also said the growth averaged 2.25 % in the United States in the first half of 2007 due to the housing downturn.

Railcar shortage disrupts coal shipments in Kazakhstan

Interfax citing Mr Nikolai Radostovets president of the Producers and Exporters Union as saying that coal companies in Kazakhstan cannot ship up to 30% of their output to customers due to a shortage of railcars at national railway Kazakhstan Temir Zholy,

He said that "Number of enterprises have produced a million dollars worth of product, but they can not ship it because there are not enough cars. This is not a new problem. We have talked about it many times, both at the Transportation Ministry and at Kazakhstan Temir Zholy."

Mr Radostovets said "We always expected that initially the restructuring of Kazakhstan Temir Zholy would go the way where a major entity, such as Kaztemirtrans, would buy cars, but on the other hand there would be private owners of cars. However, it turned out that many investors such as Kazzinc, Kazakhmys, coal producer Bogatyr Access Komyr and ENRC were in a situation where it was not profitable to buy cars, but the number of cars bought by Kazakhstan Temir Zholy cannot resolve the problem.”

He added that Coal companies cannot ship their coal to a number of other countries, because Kazakhstan Temir Zholy essentially refuses to ship coal to Romania and Poland and there is a big problem with shipments to Ukraine. He also added that "Coal companies that have produced coal for the fall winter season can not ship up to 30% of their output which has concrete buyers. They can not ship this coal, not only abroad, but not even to our domestic stations."

Mechel commissions 2 drawing mills at Beloretsk Metallurgical Plant

Mechel announced the commissioning of two modern drawing mills to produce 1.4 mm to 2.4 mm diameter spring wire at Workshop No 12 of its Beloretsk Metallurgical Plant subsidiary as a part of ongoing strategic technical re equipment program aimed at improving product quality and reducing production costs.

The cost of the project amounted to more than RUR 69 million (USD 2.8 million) and the designed capacity of the equipment will be approximately 14,200 tonnes of wire annually.

The two newly commissioned drawing mills, manufactured by Ernst Koch of Germany, a leading manufacturer of wire drawing equipment, consists of an unwinder; a mechanical descaling line; a straight through type drawing machine; and a coiler to lay wire in rosette type bundles.

Similar equipment already successfully operates at the plant. The first equipment to manufacture spring wire of 1.4 mm to 2.2 mm diameter was commissioned at Beloretsk Metallurgical Plant in 2005. Another two lines similar to the newly commissioned modern units were put into operation at Workshop No 12 about a year ago. Since the beginning of 2007, the plant has commissioned a complex to produce high tensile stabilized reinforcing wire; two lines to produce rope wire, clip wire, and semi-finished fiber wire and rewinders.

There has been consistently growing demand for spring wire in the market, which is mainly supplied to furniture manufactures. Today, 60% of springs in upholstered furniture and mattresses sold on the Russian market are made of the spring wire manufactured by Mechel’s Beloretsk Metallurgical Plant.

Uzbek court declares molybdenum JV bankrupt

It is reported that a court in Uzbekistan has declared bankrupt an Israeli company Metal Tech Ltd backed molybdenum 50:50 JV Uzmetal Technologies.

Uzmetal Technologies said that it would appeal the decision by the Tashkent regional court, which based its finding at least partly on the non payment of dividends in 2005. An official said "We wanted to pay the dividends, but the protocol at the founders' meeting was not signed because of the position of UzKTZhM.”

Uzmetall technology's problems started in July 2006, when Uzbekistan abolished the JV's exclusive right to receive molybdenum raw materials produced by the Almalyk Mining and Metals Plant in the Tashkent region. The Uzbek government decided to amend a decree of January 18th 2000 on establishing the joint venture and which had previously governed the JV's business. As a result, the joint venture has had no raw material to work with since July 22nd 2006.

The Uzbek joint venture was founded in 2000 and started production two years later on the site of the UzKTZhM plant, abbreviated based on are the Russian language initials for Uzbek Refractory and High Temperature Materials Works. Metal Tech has invested about USD 20 million upgrading the molybdenum plant in Chirchik, near the Uzbek capital Tashkent. The UzKTZhM plant is Uzbekistan's only molybdenum and tungsten producer and owns 20% of Uzmetal Technologies. Almalyk Mining and Metals Plant, which supplies raw materials to the JV, owns the other 30%.

London listed Metal Tech produces molybdenum based and tungsten based products at its own plant in Israel and a joint venture in Mongolia, as well as in Uzbekistan. Its products are used in stainless steel, cutting tools and lubricants.

Russia to sell gas at USD 180 to Ukraine

Citing Mr Valery Golubev deputy chairman of Gazprom, it is reported that gas price imported from Russia to Ukraine in 2008 will comprise USD 180 for 1000 of cubic meters up by USD 50 in comparison with 2007.

At the same time Mr Anatoly Kinakh economic minister of Ukraine stated that in case price for gas exceeds USD 180, then Ukrainian industry will be unprofitable. Mr Kinakh said “Price growth for natural gas is irreversible process. That is why we are holding negotiations.”

He said that “First of all we must have definite strategy at least for three years. We consider it would be optimal variant for Ukraine if gas price increase from January 1st 2008 comprises maximum 15%.”

ZapSib excluded from RTS Board.

It is reported that from October 25th 2007 the common stocks of Zapadno Sibirsky Metallurgic Plant are excluded from the RTS Board on the DCC information concerning the writing-off of these securities in line with the legislation in force, as it was informed.

The RUB 133.875 million worth issue covers 13387549% of RUB 10.

ZSMK is one of the leading full cycle metallurgic plants in Russia.

Yuzhny Kuzbass sold the share in Yakutugol.

It is reported that Yuzhny Kuzabss sold its share in Yakutugol driving it to zero from 25%.

In August 2007 RFFI set out 75% in Yakutugol at the auction. Mechel bought 3031488 common stocks or 75% of share capital minus one stock.

Yakutugol is a coal producer. The share capital is worth RUB 4.041 billion long term liabilities reached RUB 1.279 billion short term RUB 1.829 billion; payables coming to RUB 1.294 billion including RUB 94.777 million in budget debts.

Yuzhny Kuzbass is included into the Mechel Group set up in 2003, which also has Chelyabinsky Metallurgic Plant, Izhstal, Beloretsky Metallurgic Plant, Yuzhuralnickel, Korshunovsky GOK, Uralskaya Kuznitsa, Posyet Port, Moskoks and Romania & Lithuania based plants.

CZP starts zinc supplies to Byelorussia and Ukraine

FIS reported by the end of 2007, almost 5,300 tonnes of zinc and zinc bearing alloys are to be supplied to Ukraine through the Ukrainian trader Petrochemical Trading Ltd.

Exports to Byelorussia will be executed through the Byelorussian trader Ares-Servis TST. A total of over 500 tonnes of the products will be provided to the Byelorussian dealers by the end of the year.

Russian demand for ferrous metals growing faster than for non ferrous

Interfax reported that domestic demand for metal products continued to grow in the first nine months of 2007, with demand for ferrous metals increasing faster than for nonferrous metals.

Mr Alexei Pinchuk head of metallurgy policy at the Industry and Energy Ministry said that "In January to September 2007 we saw considerable growth in consumption of ferrous metals inside the country, which is due to the development of production in virtually all metal-consuming sectors of the economy the fuel and energy sector, engineering, construction, transportation and others. He said domestic consumption of finished ferrous rolled products grew 15% to 27.9 million tonnes in the period with imports supplying 14.3% of the total.”

Mr Pinchuk said sales of steel pipes on the Russian market grew 23.5% to 6.9 million tonnes in the nine months, with the market share of imports growing 1.4 % points to 18.7% from 17.3%. He said "It should be said that the growth in sales of roll and pipes on the domestic market was achieved not only due to the favorable market situation, but also thanks to metallurgical companies' successful marketing and promotion of their products and improvements in services in key sectors of the market."

He added that consumption of nonferrous metals on the domestic market is also increasing, including by 0.8% for nickel, 5.1% for aluminum and 2.3% for copper.


INTERNATIONAL

CVRD Q3 net profit up by 17% YoY

It is reported that Companhia Vale do Rio Doce SA has posted 17% YoY increase in net profits during July to September 2007. CVRD recorded July to September 2007 quarter profits of BRL 4.7 billion (USD 2.6 billion) up from BRL 4 billion in July to September 2006.

CVRD’s revenue in July to September 2007 increased by 38% YoY to BRL 16 billion (USD 8.9 billion) as compared with BRL 11.6 billion in July to September 2006 quarter.

CVRD’s consolidated exports in July to September 2007 increased by 22% YoY to USD 2.7 billion.

CVRD said that its Q3 performance was solid despite the real's continuing gains against the US dollar, which makes Brazilian goods more expensive for foreign buyers. The declining price of nickel also affected the company's results and was only partially be offset by higher nickel and iron ore production volumes.

CVRD said “We remain confident in the solid and continuous growth of the global economy, expecting, however, that it proceeds at a more moderate pace than in the past three years,'' the company said in a statement.

Rautaruukki sells 2 rebar units to Al Tuwairqi

Rautaruukki Corporation signed an agreement on October 24th 2007 to sell the steel reinforcing business of Ruukki Betonstahl GmbH of Germany and Ruukki Welbond BV of the Netherlands to the Al-Tuwairqi Group of Saudia Arabia.

These transactions mark the completion of Rautaruukki's withdrawal, started last year, from the reinforcing steel business. The transaction will free up capital of over EUR 25 million. Rautaruukki estimates to book a capital loss of approximately EUR 2 million of the transaction for the fourth quarter of 2007.

Both businesses have been reported as part of Ruukki Metals division. Ruukki Betonstahl GmbH generated net sales of EUR 89.9 million in 2006 and employed 68 persons at the end of September 2007. Ruukki Welbond BV generated net sales of EUR 16.4 million and employed 46 persons. The aggregate operating loss of the units amounted to EUR 4 million during the first nine months of 2007.

Completion of the transaction requires the final approval of the German competition authorities and the transaction is expected to be closed in November 2007.

The Al-Tuwairqi Group owns Thamesteel Ltd, which, for example, makes reinforcing steel.

Sumitomo Metals expands capacity for high end boiler tubes

Sumitomo Metals constructed the new manufacturing facilities at the Pipe & Tube Company's Steel Tube Works at Amagasaki in Hyogo Prefecture, to meet growing demand for super high end boiler tubes and has held a completion ceremony.

Once this new capacity comes fully on stream, Sumitomo Metals will be able to produce 18,000 tonnes per year of super high end boiler tubes, 50% more than the current annual capacity of 12,000 tonnes. Sumitomo Metals plans to leverage this additional capacity to accelerate its distinctiveness in the energy sector.

Summary of new facilities
1. Construction cost: JPY 6.5 billion
2. Construction schedule: September 2006 to October 2007
3. Main facilities: Cold drawing mill for pipe production, heat treatment furnace, inspection line etc.
4. Product types: Stainless steel boiler tubes mainly for USC boiler in coal-fired thermal power plants
5. Products: special stainless steel, containing nickel and chrome
6. Production capacity: 6,000 tonnes per year resulting in an increase in total capacity from 12,000 tonnes per year to 18,000 tonnes per year

Sumitomo Metal Industries Ltd has a commanding 80% worldwide share of the market for super high end boiler tubes, which are used in ultra super critical 1 boilers of coal fired thermal power plants. In recent years, there has been a rapid increase in construction of these highly efficient power plants in light of rising demand for electricity around the world and environmental considerations.

Alcan joins Rio Tinto to create global aluminum leader

Alcan joined the Rio Tinto group following the successful Offer for Alcan by a subsidiary of Rio Tinto. The expanded aluminum product group, formed by the combination of Alcan and Rio Tinto's existing aluminum assets became the new global leader in aluminum and will be known as Rio Tinto Alcan.

Mr Tom Albanese CEO of Rio Tinto and Mr Dick Evans CEO of Rio Tinto Alcan hosted special events at Rio Tinto Alcan's Montreal headquarters and highlighted the opportunities created by bringing Alcan into the Rio Tinto Group and the potential for continued strong growth in the aluminum sector. Similar employee events took place in Brisbane.

Mr Tom Albanese said that "I am proud to be here to welcome Alcan employees into the Rio Tinto family. They have built a company whose values we share.

Mr Dick Evans said that "Rio Tinto's strategy is to create shareholder value through investing in high quality, long life, low cost assets, and Alcan is a terrific addition to the Rio Tinto group. Together, we have a fantastic opportunity to build an even stronger global aluminum business through profitable and sustainable growth. I am personally delighted to have the opportunity to be part of the new leader in the global aluminum industry, Rio Tinto Alcan."

Mr Evans added that "With our attractive cost position, strong technology portfolio, complementary refining and smelting assets, and a strong growth pipeline, Rio Tinto Alcan's mission is to create maximum sustainable value for Rio Tinto shareholders and to fulfill our mutual commitments to all of our stakeholders."

A new look and logo are being introduced for the Rio Tinto Alcan product group. The new logo represents the rich heritage of both companies and signifies strength, confidence and leadership.

JFE Q2 earnings decline by 10% as costs climb

JFE Holdings Inc announced that it’s July to September 2007 quarter profit decline by 10% as freight charges doubled and costs increased for nickel, iron ore and manganese.

JFE in a released said that its net income during the July to September 2007 quarter dropped to JPY 71.4 billion (USD 627 million) as compared to JPY 79.6 billion in July to September 2006 quarter.

It added that rising commodity and energy prices have hurt earnings but its third quarter will benefit from price rises to car and ship makers that take effect after the first half.

Mr Yuuki Sakurai an investment planning manager at Fukoku Mutual Life Insurance Co said that “The increase in raw materials costs has been bigger than expected. Steelmakers such as JFE are responding by increasing the ratio of higher end products where margins are better.''

CVRD cuts supplies to 4 pig iron makers in Brazil

CVRD announced that it has started cutting off iron ore supplies to domestic pig iron producers accused of breaching the Brazil's environmental and labor laws. CVRD had earlier given a 30 day period to seven companies in the Amazon states of Para and Maranhao, as well as one in the central Minas Gerais state, to comply with the laws or have supplies halted.

CVRD said that it has cut off supplies to
1. Companhia Siderurgica do Para SA COSIPAR
2. Usina Siderurgica de Maraba Ltda USIMAR
3. Ferro Gusa do Maranhao Ltda FERGUMAR
4. Siderurgica do Maranhao SA SIMASA

CVRD has gave another 15 days to present new documents for a more adequate and conclusive analysis to
1. Itasider Usina Siderurgica Itaminas SA
2. Siderurgica Iberica do Para SA IBERICA
3. Siderurgica Maraba SA SIMARA
4. Viena Siderurgica do Maranhao SA

CVRD's decision came after Brazil's environmental protection agency and the labor ministry stepped up inspections this year of pig iron producers. Many companies are accused of buying coal produced with illegal wood or made at charcoal works that use slave labor.

FINEX plant produces 650,000 tonnes hot metal in 6 months

During the first six months of operation more than 650,000 tonnes of hot metal were tapped from the first commercial FINEX plant at POSCO's Pohang Works in South Korea. The nominal melting rate of 180 tonnes per hour was achieved within several weeks following the initial start up.

The FINEX process, jointly developed by POSCO and Siemens Metals Technologies, allows for the use of low cost iron ore fines and non coking coal. This reduces hot metal production costs by approximately 15% in comparison with the blast furnace route. At the same time, environmental emissions are significantly reduced.

The first commercial FINEX plant with an annual capacity of 1.5 million tons was built at POSCO’s Pohang Works. In August 2004, a contract was signed with Siemens Metals Technologies for the engineering of this plant. This was preceded by the successful operation of a Demonstration Plant in Pohang with a nominal capacity of 800,000 tons of hot metal per year, which was the result of the joint development of the FINEX process since 1992.

Dr. Johannes Schenk, responsible for the development of the Finex process at Siemens Metals Technologies said “FINEX technology offers producers the potential to further reduce iron making costs with an environmentally compatible technology. With consideration to the further optimization capability of the process, Finex thus has the potential to revolutionize the iron and steel industry, similar to other breakthrough technologies such as the LD steelmaking and continuous casting processes.”

Gindalbie and Sundance merger plan called off

It is reported that Australian iron ore juniors Gindalbie Metals Ltd and Sundance Resources Ltd have called off their planned merger.

Neither company gave a specific reason for abandoning the plan to create AUD 2 billion international iron ore group, which was first mooted a month ago. But it is believed an independent expert was unable to assign a value to Sundance because its flagship project in Cameroon does not yet have a resource. Critics of the merger said Sundance's Cameroon project presented too much risk for Gindalbie.

Mr George Jones chairman of both Sundance and Gindalbie said that he was disappointed by the decision. He said "Although I am disappointed with the decision of the respective boards not to proceed with the merger, I would like to express my full support for both boards and management teams and my strong belief in the quality of the iron ore projects being developed by both companies.”

Under the terms of the proposed scheme of arrangement, Sundance shareholders would have received one Gindalbie share for every two Sundance shares, valuing Sundance at AUD 1.6 billion.

A scoping study completed last year estimated the, Mbalam project would cost about AUD 2.77 billion to bring on stream. Compared to hematite projects, magnetite projects typically require greater capital expenditure and take longer to develop because palletizing is required.

Cleveland Cliffs completes Longwall move at Pinnacle Mine

Cleveland Cliffs Inc announced that it has resumed normal production at its Pinnacle Mine at Pineville in West Virginia, after completing the move of its longwall plow system. Production at Pinnacle slowed in August as a result of sandstone intrusions encountered within the coal panel being mined at the time. This slowdown prompted the decision last month to move the mine's longwall plow system to another panel.

As a result of completing the longwall move, Cliffs updated its total metallurgical coal production forecast for all three of its US metallurgical coal mines Pinnacle, Green Ridge and Oak Grove to 1.1 million tons for the last five months of 2007, compared with a previous forecast of 2 million tons. Cleveland Cliffs assumed ownership of Pinnacle and the other mines upon closing its acquisition of PinnOak Resources LLC, on July 31st2007.

The Company will provide a more detailed discussion of any impact when it reports third quarter and nine month financial results on November 1st 2007, and holds its quarterly conference call with securities analysts and institutional investors the following day.

Cleveland Cliffs Inc headquartered at Cleveland in Ohio is an international mining company, the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steelmaking industry. The Company operates six iron ore mines in Michigan, Minnesota and Eastern Canada and three coking coal mines in West Virginia and Alabama.

Allegheny Technologies' Q3 profits jump up by 21 % YoY

Allegheny Technologies announced that its July to September 2007 quarter profit jumped by 21% on strong demand for high end alloys and metals such as titanium.

The Pittsburgh based specialty steelmaker in a statement said that its net income during the July to September 2007 quarter rose to USD 193.9 million on sales of USD 1.33 billion as compared to USD 160.2 million on sales of USD 1.29 billion in July to September 2006 quarter.

Mr L Patrick Hassey CEO of Allegheny Technologies said that "Strong demand trends continued in our high performance metals segment and for our high value, flat rolled products. On the other hand, shipments of our standard stainless products were extraordinarily weak." He added that shipments of its high performance metals segment titanium, nickel and exotic alloys grew by 18% YoY, 5% YoY and 10% YoY respectively, compared to the same quarter in 2006. Shipments of titanium and its Uniti titanium products increased by 25% to about 2.6 million pounds, while grain oriented silicon electrical steel grew by 12% as compared to last year.

Mr Hassey said that the downside for Allegheny Technologies' July to September 2007 quarter was that it shipped 57,000 tonnes of its standard stainless steel, which was the lowest level in years. The domestic market for standard stainless steel is down nearly by 15%, even though service center inventories fell to low levels and mill owned inventories are also now declining.

Keaton plans 2 million tonne coal output in 3 years in SA

Miningmx.com reported that Keaton Energy plans to raise ZAR 300 million towards its two key coal projects near Bethal and Delmas in South Africa, which could produce 2 million tonnes of coal within three years.

Mr Paul Miller MD of Keaton Energy said that it will raise up to ZAR 150 million in a private placement in November and then a similar amount in an initial public offering ahead of the listing.

Mr Miller said that the Delmas project promises to be the flagship venture and is planned to be an opencast mine. Drilling has only started this October. But Keaton is so positive about the project its board has agreed to appoint consultants to prepare for a mining right application.

Mr Miller said that Keaton wants to have measured resources ahead of the listing and the Sterkfontein property near Bethal must be transferred to the company from the empowerment company holding it at the moment. Sterkfontein will be an underground mine, with a twin decline shaft and a washing plant. The project will cost upwards of ZAR 200 million. Preliminary results show 40% of the coal is high grade export quality thermal coal, 40% lower grade thermal coal and 20% discards.

Mr Miller said the company could grow to output of 5 million tonnes of coal, both thermal and metallurgical, with the existing asset base. He estimates that Keaton will have a market capitalization of between ZAR 1.2 billion and ZAR 1.5 billion.

Allegiance Mining starts nickel mining at Tasmania mine

Platts reported that Australia's Allegiance Mining has started mining for nickel concentrate at the Avebury mine at Tasmania in Australia.

Mr Paul Richardson general manager of Avebury's operations, at the 2007 Paydirt Australian Nickel Conference held in Perth, said that the mining contractor had recently started mining, while milling and production operations are expected to start early 2008.

Allegiance said that the Avebury has the world's highest grade of nickel concentrate with 12 million tonnes of ore, which has a nickel content of 1.11%, equivalent to 131,000 tonnes of nickel metal.

Allegiance Mining is owned 11% by China's Jinchuan Nickel, which supplies 90% of China's nickel.

5 die as steel framework collapsed in Germany

It is reported that a 5 people died after steel beams fell more than 100 meters, taking construction workers with them at a power plant construction site at Grevenbroich about 20 kilometers outside Duesseldorf in western Germany. Six people were injured in the accident.

RWE utility in a statement said that a part of the power plant's boiler, made of steel beams weighing more than 100 tons, came loose and fell.

Transurban appoints Mr Lynch as new CEO

Tollroad operator Transurban Group announced that it has named Mr Chris Lynch former BHP Billiton Ltd executive as its new CEO, following the retirement of Mr Kim Edwards, who announced his plans two months ago.

Mr Lynch will join the company in February 2008 and takeover from Mr Edwards in July 2008. Mr Lynch joins Transurban after seven years with BHP Billiton, where he was an executive director and group president of its carbon steel materials until August 2007. Before that, he was BHP Billiton's CFO for five years.

Mr David Ryan chairman of Transurban said that "We had big shoes to fill at Transurban and when you see a world class executive on the loose you act quickly."

Mr Lynch said he was looking forward to the challenge. He said that "The group is very well positioned in a sector with extraordinary opportunities."

Zinifex to appoint new CEO by 2007 end

Zinc and lead miner Zinifex Ltd is confident the company will have a new chief executive by the end of the year, after Mr Greg Gailey stepped down in June 2007.

Mr Tony Barnes acting CEO of Zinifex said that it was likely a new CEO would be in place before the end of calendar 2007. He added that "The board's search for a new chief executive officer is progressing well and we are confident an announcement will be made this calendar year."

Potential candidates have been rumored to include BHP Billiton Ltd's former group president of carbon steel materials Mr Chris Lynch and Mr Andrew Michelmore former WMC Resources CEO. But Mr Lynch was ruled out of the race after tollroad operator Transurban Group appointed him as its new CEO.

Meanwhile, Zinifex delivered a mixed production report for the September quarter, with an increase in zinc production and a marginal dip in lead output.

ArcelorMittal SA stops dumping waste at Vaal site

It is reported that ArcelorMittal South Africa stopped waste disposal at its Vaal site after being ordered to do so by government due to air and water pollution and the dumping of hazardous waste.

Mr Rick Reato CEO of ArcelorMittal SA said that it has ceased all disposal operations at its Vaal Waste disposal site on Wednesday morning. He added that the company had looked at a variety of alternatives and has identified the Holfontein waste disposal site as the only alternative.

Mr Reato said that while operations had been halted at the site, removal of magnetite from the site would continue during this period as approved by Gauteng province's department of Agriculture Conservation and Environment. He added that the company is concerned about the desirability to dispose large volumes of general waste at Holfontein which was a site classified for hazardous waste.

All rehabilitation work at the Vaal Waste disposal site was also stopped in compliance with the directive from Gauteng province's department of Agriculture Conservation and Environment and Mr Reato said the authorities had asked the company for an amended rehabilitation plan within 15 working days. Mr Reato said that "We have since asked the department for an extension to this deadline as our independent advisors say they need more time to finalise the amended rehabilitation plan. We are however doing our best to ensure we comply with the department's requests."

Gauteng province's department of Agriculture Conservation and Environment had ordered the company to stop all disposal operations at the site within five working days and find alternative waste disposal sites for its waste, after a series of non compliances were found.

CVRD assures dividend payment

Companhia Vale do Rio Doce informs that the dividend distribution announced on October 18th 2007 will take place as announced and will not suffer any change, despite recent news regarding a judicial decision involving the Company.

CVRD suffered three judicial charges, involving a total value of BRR 756,883,452.01. For the first two, determined by the Brazilian National Treasury in 2004 and 2005 amounting to BRR 117,013,860.08. At that time, these guarantees were accepted by the court. However, after our dividend announcement, the National Treasury required that the bank guarantees should be replaced by cash. CVRD is currently appealing to these decisions.

For the third charge, amounting to BRR 639,869,591.20, in an unprecedented event the Company was never served. In October 24 2007, it was required to retain to the payment of dividends. If the proper court procedure pursuant to the above mentioned law had taken place, CVRD would have 5 days to assure the execution and defend itself before the court, as occurred in prior cases.

Due to this situation, to fulfill the commitment with our shareholders, the Company will deposit in cash the values required. CVRD will appeal against this judicial decision.

Claymont Steel appoints Mr Egner as new CFO

Claymont Steel Holdings, Inc announced that Mr Allen Egner VP finance will assume the role of chief financial officer on an interim basis, as a result of the resignation of Mr David Clark, who is Mr Clark will be leaving in several weeks to pursue other opportunities.

Mr Egner who prior to the appointment of Mr David Clark as CFO, was the company's highest ranking financial officer has held a variety of finance positions with Claymont Steel since 1989 and has over 30 years of experience in the steel industry.

Mr Jeff Bradley CEO of Claymont said that "Based on his deep knowledge of the Company's business, processes and financial reporting, the Board and I have every confidence in Mr Allen's ability to provide financial leadership for the organization. While we intend to run a rigorous process before making a permanent appointment, Allen will undoubtedly present a very strong candidacy for the search committee to consider. In addition we want to thank Mr David Clark for the significant contributions that he has made in his short time here and we wish him well in his future endeavors."

Claymont Steel manufactures and sells custom discrete steel plate in North America. Claymont Steel's headquarters and manufacturing facilities are located at Claymont in Delaware.

FerrAus announces new mineralization at Robertson Range

It is reported that iron ore developer FerrAus has discovered a new zone of mineralisation at its Robertson Range project in the East Pilbara region of Western Australia.

Mr David Turvey MD of FerrAus said the new south west zone was near the current north and south zone resources and was expected to have a positive impact on mine planning.

Mr Turvey said “This new discovery confirms the outstanding exploration potential at Robertson Range and the high success rate of gravity surveys in targeting iron mineralisation. The potential resource of the south west zone is in the order of 5 million tonnes to 10 million tonnes and if realized, would increase the resource base at the Robertson Range project towards 40 million tonnes. Detailed gravity surveys have been carried out to generate additional drilling targets."

Adelaide based FerrAus is aiming to develop a mining operation producing 2 million tonnes to 4 million tonnes of iron ore per year at Robertson Range.

ArcelorMittal update on share buyback program

ArcelorMittal, under the new share buy back program, as announced on September 13th 2007, announced that it has repurchased 1,390,000 shares from October18th 2007 until October 24th 2007.

ArcelorMittal said that the shares were repurchased at an average price of EUR 54.2939 and for a total amount of EUR 75,468,475.