TATA Steel Q2 net profit up by 8.1% YoY

TATA Steel Limited has announced the following Audited results for the quarter ended September 30th 2007

TATA Steel has posted a net profit of INR 11908.30 million for July to September 2007 quarter up by 8.1% YoY as compared to INR 11014.90 million for April to September 2006 quarter.

TATA Steel’s total Income has increased from INR 43795.10 million in July to September 2006 quarter to INR 48794.10 million in July to September 2007, thus posting an increase of 11.4% YoY.

SAIL iron ore output up 10%

It is reported that Steel Authority of India Limited’s raw materials division has recorded iron ore lump production of 3.1 million tonnes during April to September 2007 up by 10.6% YoY. RMD’s total production of iron ore lump and fines has also increased by 7.9% YoY.

SAIL’s Manoharpur and Barsua mines recorded a whopping growth of 52.5% YoY and 38.3% YoY in iron ore production during the period. Other mines at Bolani, Gua, Meghahatuburu, and Kiriburu have registered a growth of 18.8% YoY, 11.4% YoY, 8.6% YoY and 5.8% YoY respectively.

JSW Steel announces positive business outlook

JSW Steel Limited has announced the following business outlook

The global crude steel production continues to grow and stood at + 7.3% YoY during the first 9 month period in 2007 mainly led by high growth in China & Asia. Chinese exports are higher in first 6 months at 55 million tonnes, but the efforts of Chinese government to restrict steel exports have slowed down export of steel products from China. The growth in consumption in emerging economies continues to be strong.

Indian steel demand growth is fuelled by strong wave of economic development. Indian economy has shown robust growth in the current financial year backed by a growth of 11% YoY in the industrial production. Lower inflation reported recently is expected to result in lower interest rate regime, which will spur growth in automobile and retail sector, a big positive for steel industry. There is increase in requirement for Steel products as a result of strong demand momentum driven by massive infrastructure growth and rising consumption on increase in urbanization.

Steel Industry is in a cost push environment due to rise in prices of iron ore, coal, coke and rising freight rates on jump of crude oil prices which is expected to keep the steel product prices high.

The appreciating rupee against US dollar coupled with a fall in international steel prices led to an adjustment of the prices downwards in domestic market in July & August in Q2, however, steel prices started moving north, both in international as well as domestic markets starting after August 2007. In this scenario & also in view of rising global demand, the steel prices are expected to remain firm & may continue to rise further.

TATA Refractories workers confined in factory

SNS reported that at least 300 workers and officers of TATA Refractories Limited at Belpahar in Jharsuguda district of Orissa were confined for more than 24 hours inside the factory premises due to the unruly activities of a group of workers. A few workers held a strike at the main gate and did not allow those inside to come out, resulting in 24 hours confinement inside the factory.

As per information from TATA Refractories Limited’s public relations department, Mr Rajkishore Rout, a TRL worker, had assaulted a senior officer of the factory Mr PK Patra on October 20th 2007. Mr Patra sustained a severe head injury and was admitted to the hospital. The factory management suspended Mr Rout but his supporters demanded the withdrawal of the order. On October 23rd 2007, the management's refusal to lift the suspension on Mr Rout enraged a few workers who suddenly blocked the main gate and didn’t allow anyone to go in or come out.

Though the management filed an FIR as to the attack on a senior officer, Belpahar police is yet to arrest the culprit since he is absconding after the incident. It is further learnt that TATA management is taking the issue seriously and might close the unit if such an unruly situation continues.

Hindujas to sell 10% equity in Ennore Foundry - Report

ET reported that Hinduja Group is planning to sell close to 10% of its equity holding in its foundry business arm Ennore Foundries Limited as part of its proposed capacity expansion plan.

Mr Dheeraj Hinduja president of Hinduja Group told ET that We have plans to dilute a minority stake in Ennore Foundries Limited to raise funds for the proposed expansion.” He added that the group now holds 80% of the equity in Ennore Foundries Limited.

Mr Prabal Banerji CFO of Hinduja Group said that it is exploring various options, including an overseas equity issuance, GDRs offering, qualified institutional placement and placement with private equity funds to raise the required funds. He added that “We will place the share at a premium. We prefer private equity funds because they can bring value to Ennore Foundries Limited and will create wealth for all shareholders.”

Ennore Foundries Limited is in the process of setting up new foundries, taking its current capacity from 96,000 tonne to around 230,000 tonne per annum in the next 2 to 3 years. The expansion program envisages Ennore Foundries Limited incurring a capital expenditure of INR 350 crore over the next 3 years at its units in Ennore, Sriperumbudur and besides Hyderabad.

BEML secures INR 648 crore order from CIL NCL

BEML has bagged a contract worth INR 648 crore from Coal India Limited’s Northern Coalfields Limited for the supply and servicing of electric rope shovels.

The order includes INR 160 crore for equipment supply and INR 488 crore for servicing over a period of 17 years. The shovels will be manufactured at BEML's Kolar Gold Fields complex.

According to a release issued by BEML, the rope shovels will be serviced from its existing service centre at Singrauli. All the rope shovels would be supplied during 2008-09 and the service contract starts from 2009-10.

PTC India Q2 net profit up by 32% YoY

PTC India Limited has posted net profit of INR 11.40 crore for the July to September 2007 quarter up by 32% YoY as against INR 8.65 crore during July to September 2006 quarter. Total income was recorded at INR 1,473.61 crore up by 12% YoY as against INR 1,318.54 crore.

Net profit for the January to September 2007 period rose by 12.5% YoY to INR 23.28 crore, while total income grew up by 12% YoY at INR 2,641.82 crore during the period. It’s trading volume for the July to September 2007 quarter grew up by 26% YoY at 4,110 million units while volumes for the January to September 2007 rose by 12% YoY at 6,591 million units.

Mr TN Thakur CMD of PTC India said that “The performance of the company during the quarter is commendable on the back of consolidating our market share in the trading business. Also, the signing of the long term agreements is adding to the sustainability of our business model.” He added that it would continue to focus on the long term agreements to attain a captive and sustainable mass of tradable power.

Major ports may get financial and functional autonomy

It is reported that the centre is mulling corporatization of Jawaharlal Nehru Port Trust and Kandla ports, in what could be a first major step towards giving financial and functional autonomy to major ports. After corporatization, the ports would be free to borrow from the market and write off losses.

A final decision has not been taken as the centre is still seeking views of all 12 major port trusts. However, sources said that the shipping ministry wants to tread cautiously and may take up only these 2 ports to start with. Ennore port had got the status 2 years ago.

Sources said that once corporatised, the ports would not be free to take their decisions. Apart from this, they would have the freedom to restructure their boards. A port trust usually has 15 to 20 members, with representatives from the respective state governments, Railways, and the Customs department. Ennore port’s board has four to five members. The centre holds 100% equity.

As the port is engaged in around 70 arbitration cases, there was scepticism in the shipping ministry over giving the status to other ports. However, as most of these cases related to Chennai Port Trust, these would have no direct bearing on the latter’s functioning.

Moreover, ministry officials said that the model had run for only 2 years and it would not be fair to discard it so early. The ministry had last year set up a 3 member committee to study the running of Ennore port, which is managed by a board of directors and is governed by the Companies Act. The committee’s report, submitted to the ministry recently, was sent to all port trusts for views.

Ministry sources said that corporatisation will provide ports greater financial autonomy and enable them to raise loans from the market, set tariffs without consulting the tariff authority for major ports and run overdrafts.

3i India Limited picks up minority stake in Adani Power

It is reported that 3i India Infrastructure Fund Limited has invested INR 900 crore (USD 227 million) for a minority stake in Adani Power Ltd, a fully owned subsidiary of Adani Enterprises Limited part of the Adani Group.

Mr Anil Ahuja, MD of 3i Asia said that through this transaction, 3i has invested in a power generation asset and reaffirmed confidence in the Adani Group, who’s Mundra Port was backed by 3i in 2005. He said that "India is witnessing phenomenal growth in the power sector, specifically power generation. Through this transaction, we have invested in a landmark power generation asset and reaffirmed our confidence in the Adani group, whose Mundra Port was backed by us in 2005. The Adani Group is a competent partner, which has demonstrated its ability to conceptualize and execute large-scale infrastructure projects.”

It is noted that Adani Power is at present developing an independent 2,640 MW imported coal based thermal power plant at Mundra in Kutch district of Gujarat. The project, launched in June 2006, is expected to become operational by 2009 and achieve full capacity by 2010.

ABB India Q3 net up by 41% YoY

Power and auto technologies major ABB India has posted a net profit of INR 115.70 crore during July to September 2007 quarter up by 41% YoY when compared July to September 2006 quarter, mainly due to higher revenue, operational efficiency, productivity improvement and cost management.

The order intake during the period has recorded at INR 1,668.30 crore up by 23% YoY. The revenue also went up by 27% YoY to INR 1,393.30 crore.

Mr Biplab Majumder country manager & MD of ABB India said that "The Indian economy continues to surge ahead with power sector investments and industrial growth gathering pace. Our order book is getting stronger, helped by core business growth as well as new revenue streams such as water and asset management. Capacity and range expansion is underway across businesses to enable us to address India's growing power and automation needs."

AB India's order backlog awaiting execution has touched INR 4,900 crore at the end of the third quarter.

Suzlon Energy Q2 profit up by 40% YoY

Suzlon Energy Limited has posted a net profit of INR 3555.8 million for July to September 2007 quarter up by 40.27% YoY as against INR 2534.9 million in July to September 2006 quarter. Its total income at INR 17187.3 million went up by 32.39% YoY as against INR 12981.5 million.

The consolidated results are as follows

Suzlon Energy Limited has posted a net profit after shares in associate's profit and minority interest of INR 3947 million for July to September 2007 quarter up by 67.69% YoY as against INR 2353.7 million for July to September 2006 quarter. Total income is INR 36947.5 million up by 76.3% YoY as against INR 20956.3 million.

Iran agrees for Iran to Armenia pipeline extension to Europe

Ria Novosti quoted Mr Mahmoud Ahmadinejad president of Iran as describing plans to extend the Iran Armenia gas pipeline to Europe as very promising. He said that "The possibility of extending the Iran to Armenia gas pipeline to Europe is a very good scenario for us and we will welcome the project."

Mr Ahmadinejad said that thorough feasibility studies should be made to extend the project, originally designed to meet Armenian domestic needs with Iranian natural gas. He said that the gas pipeline is currently being tested.

The Armenian energy official has forecast that the Iran Armenia gas pipeline will be commissioned by early 2009. The first 40 kilometer leg of the pipeline went on stream in March 2007 and the second 141 kilometer leg is currently being built. The pipeline's cost has been estimated at between USD 220 million and USD 250 million. During the first stage, Armenia will pump some 400 million cubic meters of gas annually with plans to increase the volume to 2.3 billion cubic meters.

Egypt shortlists 11 firms for setting up steel factories

Egypt’s Industrial Development Authority has announced the status of auction for steel billets & rebar factory licenses. It said that the number of short listed companies is now 11. In addition, IDA has also accepted applications for joint licenses of billets & steel bars project, expanding existing lines & building a new factory.

Mr Amr Assal CEO of the IDA predicted that all companies would be technically pre qualified & admitted to the auction sessions.

IDA said that the number of licenses earlier put at 4 may increase but the earlier given total capacity limits remain unchanged, which includes 4 million tonnes for billets & 4 million tonnes for sponge iron.

Sonatrach awarded GP1Z expansion contract to Japanese firms

It is reported that energy firm Sonatrach has awarded a USD 1.1 billion contract to Itochu and Ishikawajima Harima Heavy Industries of Japan to expand the world’s largest liquefied petroleum gas complex GP1Z. Itochu and Ishikawajima Harima Heavy Industries also handled previous expansion projects at GP1Z in 1984 and 1998.

Under the agreement, the firms will build a new refining plant and storage facilities for the GP1Z complex in western Algeria. Construction is slated for completion by mid 2010. Once operational the new refinery is to produce 3 million tonnes of LPG per year, increasing GP1Z’s capacity to 9 million tonnes a year.

Algeria is currently making a big push to develop its massive reserves of natural gas in order to fund economic expansion. It has some of the largest gas reserves in the world. In July 2007 Sonatrach signed a USD 2.88 billion deal with US engineering and construction company Kellog Brown & Root for the construction of its largest liquefied natural gas plant, capable of producing 4.5 million tons of liquefied gas per year.

Refinery investments to result in boom for tankers - Report

According to analysis of project data carried out by Dubai based research company Proleads, the 6 Gulf Cooperation Council countries, flush with cash from years of high oil prices, are investing more than USD 122 billion in new refinery projects to meet rising demand and tighter specifications for products. This investment has resulted in a boom in orders for new supertankers and chemical product carriers, in particular.

Mr Chris Hayman CMD of Seatrade, organizer of Middle East Money & Ships, said that “These are staggering figures. Once completed, these GCC projects alone will have total capacity to produce the equivalent of six million barrels a day of petrochemicals.”

Mr Sharafuddin Sharaf president of the UAE ship owners association and VC of the Sharaf Group will be addressing the scope of the shipping business in the UAE, in terms of volume and scale and its contribution to the UAE economy.

BRS, an independent broker in the international market and a participant at Money & Ships, estimates 184 supertankers are currently on order worldwide for delivery between now and 2012. BRS said that “Supertankers, in this case, refers to ships of 200,000 tonnes or over and capable of transporting 2 to 3 million barrels of oil. Put into perspective, the combined oil consumption of Spain and the UK is about 3.2 million barrels of oil a day. The global order book is even greater for petrochemical product and chemical tankers, with a staggering 1,560 such vessels due for delivery between now and 2012.”

Underscoring the surge in shipbuilding orders, recently estimated the world shipping loan book had grown by over a third, from USD 200 billion in 2005 to USD 275 billion in 2007.

Amana to construct phase 2 of Ajman industrial complex in UAE

It is reported that the Ajman free zone authority has awarded Amana Contracting & Steel Buildings the contract for the second phase of the Ajman New Industrial Complex in Al Jurf in UAE. The second phase consists of labour accommodations, an administration building, a mosque and a security station.

This project complements phase 1 of the Ajman New Industrial Complex. Awarded to Amana earlier in 2007, phase 1 consists of 13 industrial warehouses with a total built up area of 95,000 square meters. Both phases will be completed within 300 days which corresponds to the launch of the new free zone area.

Amana Contracting & Steel Buildings is a leading regional turnkey contractor with eleven operational offices in Middle East.

Laiwu Steel's profit up by 3% YoY in Q3

It is reported that Laiwu Steel Corp profit rose by 3% YoY in the third quarter from a year earlier as demand and prices increased.

Laiwu Steel said in a release to the Shanghai stock exchange said that net income for the quarter ended September 30th 2007 rose to CNY 305.6 million (USD 40.8 million) from CNY 295.8 million a year earlier. Sales rose by 21% to CNY 8.27 billion based on new accounting standards applied this year.

Laiwu Steel is able to produce as much as 3 million tonnes of H beams a year and replaced Maanshan Iron & Steel Co as China's largest maker of the product last year. ArcelorMittal, the world's largest steelmaker, wants to buy a stake in Laiwu Steel, China's biggest maker of H beams, which are used in construction.

Chinese province wise crude steel output in January to September

China’s crude steel output September is reported at 42.71 million tonnes up by 17.5% YoY. And during, January to September 2007 it is reported at 362.7 million tonne sup by 17.6% YoY.

The province wise figures are given below, with Hebeai accounting for 23% of the share. Hebei, Jaingsu, Shangdong and Liaoning have accounted for more than 50% of the total crude steel production during January to September 2007.

In million tonnes

(Sourced from MySteel.net)

Baosteel develops 1200MPa steel

Baosteel Group has become the first steelmaker in China that can develop 1200MPa ultra high strength structural steel. Currently only a few steelmakers around the world can yield the product.

1200MPa ultra high strength steel is a HR product with the highest tensile strength. Due to no noble metal alloy content, it is an environment friendly product with low cost and nice welding performance which can be used in the manufacturing of structural member, stiffener, safety member and so on.

Product performance of 1200MPa ultra high strength steel Baosteel produces has met design requirements and the tensile strength and extensibility are even better than scheduled value.

(Sourced from Mysteel.net)

Guangdong announces obsolete steel capacity elimination plans

It is reported that Guangdong provincial government issued an executive plan October 18th 2007 for shutting down and eliminating outdated steel capacities for the period ended 2010, requiring all municipal governments and departments to implement and report up the problems they face.

The plan is aimed to shut down and eliminate 1.62 million tonnes iron smelting and 15 million tonnes steel making capacities during the 11th five year period.

The plan outlines phasing out as under
1. 2007 - Below 10 tonnes electric arc furnaces & converter and 10 cubic meter or smaller blast furnaces. 100,000 tonnes iron smelting and 300,000 tonnes steel making capacities.
2. 2008 - Below 10 tonnes electric arc furnaces & converter and 10 cubic meter or smaller blast furnaces. 370,000 tonnes of iron making and 1.91 million tonnes of steel making capacities.
3. 2009 - Electric furnaces and converters with volume between 10 tonnes to 15 tonnes will be eliminated and 2.77 million tonnes steel making capacities shut down or out
4. 2010 - Below 20 tonnes electric furnace and converter, blast furnace with volume between 100 cubic meters to 300 cubic meters should be closed.

The plan prescribes to differentiate electricity price, set environment protection standards, supervise product quality and production safety, strengthen taxation and credit management to carry on the elimination campaign.

In a bid to achieve expected results all governmental departments are asked to make its unique function, and over this period, municipalities should submit 1H implementation situation and problems to the provincial development and reform commission before July 15th 2007 each year and the whole year situation before December 31st 2007.

(Sourced from MySteel.net)

China's aluminum market pressured by oversupply

Interfax China reported that China's aluminum market is falling due to high stockpile levels, even though domestic aluminum consumption remains strong. Market players are worried that domestic aluminum prices could struggle to break their current downward trend in the remaining months of the year due to oversupply.

The report cited a trader from Shenzhen as saying that "Domestic aluminum stockpiles climbed rapidly after the National Holiday in early October, pulling down aluminum prices in both the spot and futures markets. Apparently, domestic market supplies have exceeded consumption, although we are confident that China's consumption will remain strong in near future."

Mr Jing Chuan an analyst with Great Wall Futures in Shanghai predicted that domestic oversupply could continue to be a feature, and thereby further depress aluminum prices during the rest of the year. He said "As Shanghai's aluminum prices were higher than London's prices, imports rose and exports were restrained in September. This led to mounting supplies in the Chinese market. As both Shanghai and LME aluminum stockpiles are on the rise, there are no favorable conditions for price growth at the moment."

Mr Wang a sales official with Shanxi Huaze Aluminum & Power Co Ltd. said "Stockpiles increase as domestic aluminum output climbs, and the current stockpile level is reasonable when compared with such great aluminum production. Our sales performance is quite stable because of strong demand, even though the domestic market is seeing a downward trend in prices. He added that we believe the margin for further falls in aluminum prices could be limited, as downstream consumption remains strong. Our current stockpile level is 1,000 tonnes off primary aluminum a day and this is completely affordable for us.”

China's primary aluminum and aluminum alloy exports dropped by 19%MoM to 44,019 tonnes in September while imports increased by 20% from August to 20,594 tonnes.

According to the latest report released by the World Bureau of Metal Statistics Global aluminum oversupply reached 368,000 tonnes for the first eight months this year.

EU to help China boost steel production efficiency

Mr Heinz Zourek an official of EU, after holding talks with the National Development and Reform Commission in Beijing, said that the European Union will work with China to boost steel production efficiency here.

The Chinese government has prioritized more environmentally friendly, sustainable production to better support its rapid economic growth.

Mr Zourek, the European Commission's director general for enterprise and industry has been in the capital for two days of meetings with his Chinese counterparts. He said that NDRC officials also told him that China has no intention of becoming a net steel exporter while capacity reductions will not affect the international market.

China releases new measures to improve mining safety

Interfax China reported that China's State Administration of Work Safety recently released new measures designed to improve working conditions in metallic and non metallic mines and stem the tide of serious accidents that plague the mining industry in China.

According to State Administration of Work Safety at present as many as 95% of China's metallic and non metallic mines are small scale and lack suitable safety management systems. This has resulted in numerous small scale accidents as well as periodic serious accidents which have caused a large number of casualties.

According the statement the new measures will penalize mining companies for major accidents by suspending their licenses for a 5 year period.

State Administration of Work Safety hope that the number of casualties from metallic and non metallic mining accidents will fall by 10% between 2005 and 2010.

The new measures will encourage work safety administrators at various levels to cooperate in closing mines with substandard safety conditions, and strengthen safety management systems and organizations for workers through expert advice and regular safety training sessions, in order to enhance on-site safety management, avoid potential dangers and improve emergency response mechanisms.

Baosteel aiming to be among top 3 global steel makers

It is reported that Baosteel Group will strive to join global top three steelmakers club in 2010.

Mr Xu Lejiang board chairman has revealed the steelmakers strategic target in the following six years. According to him, the steelmaker will shift strategy to high quality products and large scale production and capacity expansion by merger and fresh construction to achieve this goal.

With tight raw materials supply and increased concentration in downstream industries, steelmakers worldwide accelerate capacity expansion to strengthen competitiveness. The foundation of ArcelorMittal has triggered a new round of acquisition rush in steel industry. Besides, giants also strengthen investment to extend industry chain, control resources and realize sustainable development.

As China acts as the world largest steel producer for eleven consecutive years, problems such as overcapacity, unbalanced product mix and low concentration emerge. In the meanwhile overseas steelmakers intensify the overall penetration into Chinas domestic market and reinforce technology locking.

In Iron and Steel Industry Development Policies released in 2005, China urged domestic steelmakers to speed up combinations and claimed output of the top ten steelmakers should account for over 50% of the countrys total in 2010 and over 70% in 2020.

Baosteel thus brings forward its development plan in the coming six years, based on previous plan for the 11th Five Year Plan.

(Sourced from MySteel.net)

Lingyuan Iron and Steel posts net profit of CNY 277 million in 9 months

According to Lingyuan Iron and Steel Company Ltd’s announcement released recently, the company realized net profit CNY 81 million in the third quarter of 2007 and CNY 277 million during the first nine months of 2007.

The financial report for the third quarter is not audited. However, Mr Zhang Zhenyong, he principal of the company and Mr Xu Lifeng, the manager of the accounting department and the accounting, said that the financial report of the third quarter is correct and complete

Chongqing to develop Taohua hematite mine

Interfax China reported that Chongqing Iron and Steel Group, a major steel mill in southwestern China, plans to start construction on its Taolua hematite mine in Wushan country in the Chongqing Municipality next year in order to help meet its own iron ore demands.

Mechel fulfills financial obligations to acquire the shares of Yakutugol

Mechel OAO has recently announces the fulfillment of its financial obligations related to the previously announced winning of the auction to acquire Yakutugol OJSHC comprising 75% of its charter capital less one share, shares of Elgaugol OAO comprising 68.86% of its charter capital, and the real estate complex.

As the result of the auction held on October 5th 2007, Mechel acquired 3,031,488 ordinary registered shares of Yakutugol OJSHC comprising 75% of its charter capital less one share, 586,000 ordinary registered shares of Elgaugol OAO comprising 68.86% of its charter capital, and the real estate complex for a total of RUB 58.2 billion.

Pursuant to the purchase and sale agreement, the winner is to acquire the ownership of the shares of Yakutugol OJSHC, shares of Elgaugol OAO and the real estate complex upon 100% payment of the tendered amount.

Mechel has completely performed its financial obligations regarding payment for the price of the stakes in Yakutugol OJSHC and Elgaugol OAO and the real estate complex. Upon completion of the transferring of the ownership and making a respective record in the securities’ register, Mechel will become the fully legitimate owner of the controlling stakes in the companies.

Mr Alexey Ivanushkin CEO of Mechel’s commented that “We are pleased to announce that Mechel fulfilled all its financial obligations under the transaction ahead of schedule. Mechel financed the transaction through a combination of its own cash and borrowed funds, most of which were provided by VTB Bank. The acquisition of Yakutugol OAO, which mines approximately 10.0 million tonnes annually, will enable Mechel to fulfill its strategic objective to mine about 30.0 million tonnes of coal next year. Once mining operations at the Elga project reach the planned capacity of approximately 30.0 million tonnes Mechel will become one of the world largest coal companies with the annual output of over 60.0 million tonnes.”

Russian railway RZD could raise USD 12 billion from IPO

RIA Novosti citing Mr Andrei Kostin CEO of VTB Bank as saying that Russia's railway monopoly RZD could raise around RUB 300 billion from a IPO of 20% of its stock.

Mr Vladimir Yakunin president of RZD earlier said the company could float shares after 2010 to attract investment for building new railroads.

Today RZD is wholly owned by the state and cannot hold an IPO. At the same time, RZD could raise funds through the share offerings of its subsidiaries.

Mr Rashnikov chairman of MMK awarded with decoration

It is reported that the Russia’s National Association of Non State Pension Funds awarded Mr Viktor Rashnikov chairman of Magnitogorsk Iron & Steel Works with a special decoration. MMK employees were given an honorary certificate as a sign of public recognition of their achievements.

The ceremony took place in Moscow in the course of a solemn gathering devoted to the fifteenth anniversary of non state pension funds in Russia. The event was attended by the State Duma Deputies, members of the Soviet of the Federation and representatives of different ministries.

Magnitogorsk based non state pension fund called Social Protection of the Elderly was represented by Mr Maxim Tikhomirov the fund’s Director who was given the honorary certificates for Mr Viktor Rashnikov chairman of MMK and the company’s employees. These were given for great contribution to the development of non-state pension funds and improvements on the corporate culture and building up on the Russian business community’s good reputation.

Social Protection of the Elderly was set up by Magnitogorsk Iron & Steel Works on May 17th 1995 and now cooperates with 104 businesses and organizations in Chelyabinsk and Sverdlovsk Regions; the number of people using the program comes to 108,922 people. The fund has paid its pensioners RUB 37.264 million since the beginning of the year and RUB 134.406 million over the whole period of its existence. The company is servicing 5,849 retirees now who get their additional pension and 11,745 retirees who get their primary pension. The volume of all customers’ savings now amounted to RUB 123.777 million on October 1st 2007.

Verkhnechonskneftega lay oil pipeline in Siberia

Interfax reported that the Verkhnechonskneftegaz oil and natural gas company plans to start laying an oil pipeline next month from the Verkhnechonskoye oil and gas condensate field to the Eastern Siberia Pacific Ocean trunk pipeline.

Mr Mugammir Galiullin GD of Verkhnechonskneftegaz said that laying the pipeline would start after the government issues its assessment of the project and would finish in the second half of 2008.

Verkhnechonskneftegaz is licensed to develop Verkhnechonskoye, a filed that has C1 oil reserves of 159.5 million tonnes, C2 oil reserves of 42 million tonnes, C1 condensate reserves of 400,000 tonnes, C2 condensate reserves of 2.9 million tonnes, C1 gas reserves of 56 billion cubic meters and C2 gas reserves of 105 billion cubic meters.

VChNG plans to produce 326,000 tonnes in 2008 which is 8.8 times as much as it is expected to produce in 2007. In 2009 it plans to produce 1.31 million tonnes of oil.

The Verkhnechonskoye ESPO pipeline, which will carry a maximum of 9 million tonnes of oil a year, will cost about RUB 7 billion to lay. It will be about 100 kilometers long, a 15 kilometer stretch passing through the Irkutsk region and the rest through Yakutia region.

Shares of MMK to be included into the MICEX index calculation base

It is reported that since October 15th 2007 the ordinary shares of OJSC MMK are included into the MICEX index calculation base.

At the same time the number of securities included into the MICEX index remains unchanged and constitutes 30 shares. The indices are price, capitalization-weighted indices of the shares of Russian issuers. The indices are calculated real time. The MICEX index calculation base is reviewed twice a year, the industry index and capitalization index calculation bases are reviewed once a quarter. The new index calculation base will be valid till the April 16th 2008.

The MICEX index that has been calculated for 10 years comprises the shares of the most important Russian companies and constitutes the main indicator of the Russian stock market. The fact that the shares of Magnitogorsk Iron and Steel Works will be included into the MICEX index indicates that these shares are one of the most liquid and representative instruments of the Russian securities market.

ArcelorMittal to buy 70% stake in Italian steel distributor

ArcelorMittal has announced its intention to acquire a 70% stake in Carminati Distribuzione Srl, one of the leading steel distributors in Northern Italy. The transaction has been approved by the competition authorities.

Carminati Distribuzione Srl previously known as Carminati Siderurgica SpA was founded in 1960 and until now entirely owned by the Carminati family, employs 88 people in three sites at Brescia, Bergamo and Verona. It sold over 75,000 tonnes in 2006 with a turnover of EUR 50 million.

Carminati Distribuzione Srl specializes in finished long products with cutting, drilling and flame cutting activities, for beams and angles. Its sales of sheets and plates, as well as of hot rolled bars and tubes, create a highly complementary product mix and activity which is aligned with ArcelorMittal Distribuzione Italia's strategy.

ArcelorMittal said that “This newcomer in the distribution network will benefit from synergies with ArcelorMittal's European flat and long production plants, as well as support from the group's existing organizations. Highly oriented towards its end users, Carminati is an efficient company with strongly motivated personnel which integrates perfectly within ArcelorMittal's growth plan.”

ArcelorMittal already operates in Italy with two distribution companies, in Udine and Bologna.

El Alto hopes to install Zn smelter - Bolivia

BNamericas reported that Local government in the Bolivian town of El Alto is looking at installing a zinc smelter to process concentrates.

Mr Pedro Mariobo deputy mining minister of Bolivia's said "The city of El Alto is interested in development and its policy even exempts all industry that enters the area from paying taxes over the next 10 years. He said by doing so, El Alto is attracting investors and companies from different fields and has achieved a high growth rate, which has reached 8% in recent years and exceeds the 6% growth reported in the city of Santa Cruz in eastern Bolivia.”

Mr Mariobo said also because of the mining boom the city is inviting smelters to establish themselves here, adding that would ideally include a zinc smelter. He said the Colquiri and Matilde zinc mines are located near El Alto.

Mr Elías Troche head of the local economic and productive development office was quoted as saying by state news agency ABI that "We want El Alto to become a truly productive city and based on that we may have a smelter within a few months."

El Alto is located northwest of Bolivia's capital La Paz at 4,000 meters above sea level.

Nippon Steel to set up galvanizing line in Thailand

YIEH reported that Japanese Nippon Steel has planned to set up its first galvanized steel mill in Thailand.

The report added that Nippon Steel's senior managements had discussed with Thailand’s business department for the investing project, and plans to set up a new galvanized steel mill in Thailand to meet rising demand from domestic auto industry.

Currently Thailand needs to import galvanized steel for 700,000 tonnes to 800,000 tonnes.

Masteel to gain from rising steel prices and growing demand

Malaysia Steel Works Bhd is expected to benefit from rising international steel prices and growing demand for its products from the Ninth Malaysia Plan and the Asean region.

Masteel in a release said that “It expects to benefit directly from the MYR 18 billion earmarked for construction and infrastructure in the Ninth Malaysia Plan.” It said demand from the Asean region would also grow due to the abolishment of value added tax rebates and the imposition of 15% export tax on semi finished products, imposed by the Chinese government since June 2007.

Masteel said it expects international steel prices would continue to climb by 30% with demand from China, India, Middle East and Commonwealth of Independent States.

Masteel said it had a superior track record in profit margins due to production efficiency as shown by its 17% average for earnings before interest, taxes, depreciation and amortisation over the last five years.

Hyundai Heavy Industries to buy 1.5% stake in Hyundai Motor

Yonhap reported that Hyundai Heavy Industries Co one of the world's largest shipbuilder will spend KRW 211 billion (USD 230 million) to buy 3.29 million shares of Hyundai Motor Co.

Hyundai Heavy Industries in a regulatory filing said that the share purchase will raise the shipbuilders' stake in South Korea's leading automaker to 3.46%.

Acindar board accepts ArcelorMittal offer

BNamericas reported that the board of directors at Argentine steelmaker Acindar has approved a USD 542 million offer from Europe's ArcelorMittal to gain 100% control of the company, a move that was expected.

Acindar in a report to the Buenos Aires stock exchange said that the company's board has voted in favor of accepting the price offered by ArcelorMittal.

In early October, ArcelorMittal announced plans to offer USD 542 million to acquire the 34.7% it does not already own in Acindar, which corresponds to 297 million Acindar shares. ArcelorMittal already controls 65.3% of the company through ArcelorMittal Belgo part of the European group's Brazilian subsidiary ArcelorMittal Brazil.

Mr Cristian Reos an analyst at brokerage Allaria Ledesma told BNamericas that "ArcelorMittal already controls the company so it's obvious that the board would accept."

Mr Roes said that the next step is for ArcelorMittal to formalize the offer that it must prepare a case to clear up competition issues and defend itself against the investigation that Argentina's securities regulator CNV launched against some members of Acindar's board. He added that "Those issues could delay the process a little but I do not believe they will have much impact on it."

ASTM publishes new edition of “The Handbook of Comparative World Steel”

ASTM International announces the publication of the new, extensively revised DS67C, The Handbook of Comparative World Steel Standards - 4th Edition.DS67C gives a detailed explanation of how and why one steel is comparable to another. This new edition allows the user to identify comparable steels that are found in standards from around the world and to evaluate each standard to ensure that the selected steel is suited for the intended application.

In DS67C, the user can compare standards from ASTM, AFNOR, API, ASME, BSI, EN, CSA, DIN, GB, ISO, JIS and SAE. In addition to features such as over 6,100 steels, 450 worldwide standards, 275 new or updated standards, 155,000 pieces of data, and over 30,000 pieces of Chinese steel data, the 4th Edition includes:

1. A greater number of steel comparison groups to help readers find more accurate international cross-references;
2. Designation changes from AFNOR, BSI and DIN to their new CEN designations;
3. Detailed table of contents and four subject indexes;
4. Criteria for comparing steels, including examples of the comparison process and an updated list of comparison rules
5. Explanation and examples of designation systems of ASTM, SAE, UNS and CSA
6. Introduction to European (EN) standard steel designation systems, including steel names and steel numbers
7. Latest designation changes from DIN, BSI and AFNOR to their new EN designations.

ASTM International established in 1898, is one of the largest international standards development and delivery systems in the world. ASTM standards are accepted and used in research and development, product testing, quality systems and commercial transactions around the globe.

Queensland Resource Council urges for cutting greenhouse gas

The Queensland Resources Council has urged mining companies to help cut greenhouse gas emissions if they want to prosper from long term demand for the state's coal. A senior minerals analyst with the Australian Bureau of Agricultural and Resource Economics has predicted the demand for Queensland coal will continue until at least 2030.

Mr Michael Roche CEO of Queensland Resources Council's said that it does not guarantee mining companies will be able to take advantage of it. He added that "Our concern is, will we continue to have the support of governments and the community to keep digging up and exporting coal unless we are part of the solution for the greenhouse gas problems?"

Meanwhile, Mr Geoff Wilson Mines Minister of Queensland Mines said the State Government has not set a precedent by intervening in a legal dispute over a central Queensland coal mine. He said that "This step is a response to this particular case and the unusual highly unusual circumstances and facts associated with this particular site. It is a sad day in Queensland when legislation has to be passed to prevent Queensland falling to its knees financially because of controversial warnings regarding global warming."

Mobile County approves incentives for ThyssenKrupp steel plant

It is reported that Mobile County residents recently voted to support a plan to use up to USD 156.9 million of road building funds to pay off incentives for a new steel mill. The money will come from the county's Pay As You Go fund and will be spent over 30 years to pay USD 70 million in bonds that will be sold to pay the county's incentives to ThyssenKrupp AG.

Mr Stephen Nodine commission president said that he was pleased the referendum passed with such a large margin. The people realized it was a sound investment. He said it had not passed the county would have had to tap into its general fund, which pays for things like the Sheriff's Department and jail operations. He also added that the use of this fund will continue to allow us to build better roads and bridges.

In addition to the USD 70 million, Mobile County also could be on the hook for another USD 13.5 million. The county is supposed to set up a consortium of other local governments to come up with that money, but so far no other agencies have promised a specific amount.

According to Mr Matt McDonald bond attorney the county needs to take several steps before it can sell the bonds. He said it must file a validation lawsuit so investors can be sure there are no legal issues surrounding the vote. County officials will then get insurance and a bond rating and should be able to sell the bonds by the end of the year.

ThyssenKrupp will build a USD billion plant in the north part of the county that will employ 8,000 workers a year during a three ear construction phase and then 2,700 once the plant is in operation.

Tung Ho Steel certified by JIS

It is reported that Taiwan’s Tung Ho Steel has been awarded Japanese Industrial Standards 3101 rolled steel for general structure, 3106 rolled steel for welded structure and 3136 rolled steel for building structural use certificate approval.

As per report, Tung Ho Steel is the first H beam mill in Taiwan that certified from Japan.

Now, Tung Ho Steel has not only JIS standard certificate, but also ASTM and CE standard certificates. It means Tung Ho Steel's H beam products have already been qualified on its quality and processing control.

CONSOL files plan to re enter idle mine in Buchanan County

It is reported that Consol Energy has recently submitted a plan to state and federal mining regulators outlining how it wants to re enter an underground coal mine that was idled after a suspected fire in the Buchanan County operation in early July.

Mr Mike Abbott spokesman for the Virginia Department of Mines, Minerals and Energy confirmed that Consol submitted a re entry plan. DMME will study it before a decision is made. According to a Consol news release, the company submitted a similar plan to the federal Mine Safety and Health Administration.

Consol evacuated its Buchanan Mine on July 9th 2007 when roof falls happened in a portion of the mine that was no longer being mined. The cave in disrupted the air flow and air quality readings indicated a probable blaze in that portion.

Consol officials said all but one of the 99 monitoring stations where elevated levels of carbon monoxide were detected showed normal ranges for gases. Also, no evidence of smoke or elevated temperatures was detected in the mine.

The company restarted nitrogen injection into three bore holes in an area that had an elevated carbon monoxide reading. Officials said the nitrogen injection will continue for a week to 10 days and the mine atmosphere will be re-evaluated. In addition, the company will drill one or two new bore holes to provide for a closer spacing and additional evaluation of the mine atmosphere in the affected area. The mine continues to be ventilated.

Terra Nostra increasing ownership of copper and SS JV in China to 90%

Terra Nostra Resources Corporation recently announced that it has undertaken additional steps to increase its majority ownership in both Shandong Terra Nostra Jinpeng Metallurgical Co Ltd and Shandong Quanxin Stainless Steel Co Ltd from 51% to 90%.

Terra Nostra is increasing its ownership in the two joint ventures under the framework of an Equity Transfer Agreement entered into with its Joint Venture partners in April 2007. The Company is moving forward with an independent valuation of the respective operations, which will form the basis for final negotiations between the parties. The transaction is expected to be completed not later than December 31st 2007.

Mr Sun Liu James Po CEO of Terra Nostra said that "Overall market conditions remain strong, with the joint venture operations continuing to ramp up production levels to meet customer demand, maximize manufacturing efficiencies, and deliver top and bottom line growth for shareholders, and we therefore believe this to be an opportune moment to work towards completing this transaction."

Terra Nostra is a leading copper and stainless steel producer in China through its 51% majority interests in two JV companies in China. Shandong Terra Nostra Jinpeng Metallurgical Co Ltd has an existing and under construction total production capacity of 170,000 tonnes of electrolytic copper and 20,000 metric tonnes of low oxygen copper, together with value added copper rod and wire capabilities. Shandong Quanxin Stainless Steel Co Ltd operates a modern stainless steel production facility with a 230,000 tonnes capacity casting mill and a 150,000 metric tonnes rolling mill. The two JV companies, with total assets in excess of USD 180 million and over 1,000 employees are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai.

Waratah increases coal resource in Galilee Basin

Waratah Coal Inc announced the upgrading of its estimate from 1.055 billion tonnes to 1.470 billion tonnes of inferred coal resource at Waratah's South Alpha EPC 1040 permit in the Galilee Basin at Queensland in Australia.

This revised estimate comes with the inclusion of recently drilled holes and the return of vital borecore analysis. The resource lies 60 kilometres south of the 675 million tonne inferred coal resource at Waratah's North Alpha EPC 1053 project.

Highlights include
1. Highly continuous, shallow dipping coal seams
2. High quality, low sulphur thermal coal
3. 60 kilometers along strike from Waratah's 675 million tonnes North Alpha resource
4. Drilling continues to track the seam strike to the south in the South Alpha lease.

SRK Consulting, independent technical advisors to Waratah, have analysed data from 26 open core and 14 partially cored drill holes to estimate the following inferred resource category on the northern portion of the South Alpha permit.

Mr Tracy resigns as president of Drummond

Birmingham based Drummond Co recently announced that Mr Mike Tracy has resigned as president of the coal mining company.

Mr Garry N Drummond in a press release said that after 30 years of working in numerous roles for the enterprise, Mr Tracy has accepted a postion with another energy company.

Drummond operates a mine in western Jefferson County and a mine at Columbia in South America.

Titanium mine put into production in Mozambique

Xinhua reported that a titanium ore dredge mine, Mozambique's largest mining project to date is under way at Topuito on the coast of the Northern Province Nampula. Mr Armando Guebuza president of Mozambique inaugurated the mine at Topuito of the Northern Province Nampula, which can supply 6% of the total world demand for titanium feedstock.

Since 1987, Kenmare has spent about USD 500 million on heavy sands prospection, and on building the Topuito infrastructures. Of this, USD 275 million is in the form of bank loans and the rest is equity.

The exports have not yet begun, since the barge, built in Singapore, has not reached Topuito. The first confirmed export is 25,000 tonnes of ilmenite for a company in Slovenia.

Mr Michael Cargill MD of Kenmare said that major chemical in Europe, America, Japan and China are interested in obtaining titanium ores from Topuito. Mr Cargill is confident of paying off the loans on schedule, and believes that the mine would make a return on the investment in maybe ten years.

Macquarie Harbour opens USD 4 million IPO

Tasmania focused metals miner Macquarie Harbour Mining Ltd has announced plans to raise a minimum of USD 4 million through its initial public offer to commence a drilling program across its portfolio.

It plans issuance of 20 million shares at 20 cents each and will also offer a further 10 million shares in oversubscriptions allowing it to raise up to USD 6 million. The offer has opened on October 23rd 2007 and is scheduled to close on November 16th 2007.

Sydney based Sonray Corporate Pty Ltd will act as financial adviser and lead manager to the company, while Hobart based law firm Simmons Wolfhagen will serve as independent solicitor reporting on tenements.

The company will use the proceeds from the float to begin drilling a highly prospective portfolio of gold, copper, nickel, zinc, iron ore, tin and platinum group metal targets across Tasmania.

Port Hedland welcomes AUD 225 million upgrade

It is reported that authorities in Port Hedland in Western Australia's north, have welcomed an AUD 225 million expansion of facilities to cater for the growth in demand for minerals, particularly iron ore.

The report added that a new multi purpose berth will be built on Finucane Island, on the western side of the harbour and is expected to be operational by mid 2009.

The State Government says it will provide access to export facilities for iron ore juniors and allow for the relocation of manganese and chromite stockpiles away from the town.

Mr Andre Bush CEO of Port Hedland said that the new berth will handle about 18 million tonnes of exports a year. He added that "It's very much a bulk export port at the moment but there's also significant growth in general cargo [and] fuel imports, which hopefully creating this berth will allow the public berths to service that increased trade in the future.”

Queensland premier defends Wollombi coal expansion

It is reported that Ms Anna Bligh Premier of Queensland has defended her government's decision to protect the expansion of Xstrata's Wollombi coal operations in central Queensland.

Ms Bligh recently said that “While she accepted there would be opposition to the new laws, they would be introduced to protect jobs and the investment made by Xstrata. It is an unusual decision by government and certainly not one you would expect to see happen very often.”


Ms Bligh said this mine received the go ahead in perfectly legal circumstances and the appeal yesterday was on a technical procedural ground and not about the substance of the environmental management, She said “I am not prepared to see 190 workers and their families put at risk or the USD 70 million worth of investment put at risk for a matter which might leave a question mark for anything up to 12 months dragging through the courts."

The new laws follow overturning of a Land and Resources Tribunal decision that had allowed the mining company to expand Wollombi without any conditions to offset greenhouse emissions. The government granted the extension of Xstrata's open cut coal mine near Moranbah earlier this year after the Land and Resources Tribunal approved stringent environmental conditions. The tribunal rejected additional conditions that the Queensland Conservation Council sought to have imposed which forced Xstrata to avoid cut or offset a proportion of its greenhouse gas emissions. The QCC appealed the tribunal's decision and the Court of Appeal on Friday upheld the green group's objections, deciding to send the matter back to the Land Court for rehearing.