Thiess makes entry into Indian mining scene

It is reported that Australian coal mining service provider Thiess’s Indian unit Thiess Leighton India has signed an agreement with domestic infrastructure company Abhijeet Group for execution of a coal mining contract in north Karanpur are of Jharkhand, having expected reserves of about 270 million tonnes of coal.

New South Wales Premier Morris Iemma announced the deal in New Delhi as part of a trip to promote business and education ties.

The project, worth USD 1.5 billion, will involve the development and 20 year operation of an open cast coal mine, which is expected to reach an ultimate capacity of 6.57 million tonnes a year.

Mr Abhishek Jayaswal director of Abhijeet Group said “We have signed up Thiess Leighton for the development of our captive coal mine in Jharkhand with expected reserves of about 270 million tonnes. The coal mine would feed Abhijeet Group’s proposed 3 million tonne steel plant and 1200MW power plant coming up in Jharkhand.” Mr Jayaswal added that Theiss may be roped in as partner in other mining projects of the company.

SAIL and TATA Steel welcome plans for berths reservation at Haldia

It is reported that both Steel Authority of India Limited and TATA Steel have responded positively to the Kolkata Port Trust’s plan to reserve berths No 2 and No 8 at Haldia dock for handling coking coal, coke and limestone and extend certain concessions to firms, particularly to steel companies, using the berths with guaranteed throughput. Both SAIL and TATA Steel have indicated to shortly enter into agreements in this regard with the Haldia dock authorities.

The users of the berths, guaranteeing minimum throughput of 1.5 million tonnes annually per berth, will enjoy certain benefits in the form of priority berthing and other facilities to be extended by the dock authorities.

Right now TATA Steel imports annually about 1.6 million tonnes of coking coal, coke and limestone through the dock and mainly uses the berth number 8 which is to be reserved under the new scheme. Earlier, it used to import limestone through another berth No 12 which has been leased out by the dock authorities to TM International Logistics, a TATA Steel subsidiary but not any more now. TATA Steel’s total import of coking coal, coke and limestone is set for big jump in tune with the expansion of its Jamshedpur plant.

SAIL is also keen to step up its import through Haldia. Currently, SAIL imports only coking coal through the dock, an estimated 4.6 million tonnes annually, largely through the berth number 4A. However, SAIL proposes to increase its import to 5.5 million tonnes annually, of which three to 3.5 million tonnes will be through 4A and the balance through berth number 2 to be reserved under the new scheme. SAIL has plans to increase its import of coking coal through Haldia up to 7 million tonnes in not too distant future. It also proposes to start importing limestone through the dock.

The Haldia dock sources indicate that the capacity of the 2 berths to be reserved for the steel sector is being raised from the present 2 million tonnes each to 3.5 million tonnes each through proper mechanization so that other steel producing companies too can take advantage of the new scheme.

Abhijeet Group unveils mega plans in steel and power sector

It is reported that Abhijeet Group will invest INR 55,000 crore to build steel and power plants in various parts of India, besides planning forays into other sectors.

Mr Abhishek Jayaswal director of Abhijeet Group said that "We would invest around INR 40,000 crore to build 3 steel plants with production capacity of 10 million tonnes in Jharkhand, Maharashtra and West Bengal.”

He added that the proposed plant at Seraikela in Jharkhand would produce 3 million tonnes of steel, while the one at Yavatmal in Maharashtra would have a production capacity of 2 million tonnes and the plant near Asansol in West Bengal would produce 5 2 million tonnes of steel.

Mr Jayaswal said that "Funding the steel projects is not an issue as banks are keen to provide money. We would borrow from the banks and financial institutions in the debt equity ratio of 65:35. We are also planning to go public by 2010 to raise additional resources." He added that work for the Jharkhand plant would begin in 3 months and has roped in ILF&S for its West Bengal project. Though all the proposed projects would be Greenfield ones.

Abhijeet Group has also signed a coal mining contract with Theiss Leighton Private Limited for developing an opencast mine at North Karanpur in Jharkhand at a cost of INR 4,500 crore, with a production capacity of 6.75 million tonnes per annum. The coal extracted would be used to fire its proposed power project in Jharkhand. It would also invest INR 15,000 crore to set up power plants capable of producing 5,000 MW in Maharashtra, Jharkhand and West Bengal.

Commerce ministry awards star export house status to GPT Steel

It is reported that GPT Steel Industries Limited has been accorded the status of star export house, in accordance with Foreign Trade Policy 2004-2009, by the Director General Foreign Trade department of commerce ministry of India. The certificate is valid till March 2009.

GPT Steel is part of the diversified GPT group with interest in steel plants, steel pipes, service centers and power plants. GPT Groups has a cold rolling and tinning complex with a capacity of 650,000 tonnes per annum at Gandhidham and a 60,000 tonnes spiral pipe plant near Vadodara in Gujarat. It has the distinction of having largest tinplate line in India and also widest cold rolling line, which can produce 1728 mm wide CR.

Indian Railways freight earnings in April to October up by 11.05% YoY

Indian Railways has posted freight earnings of INR 25423.59 crore during April to October 2007 period up by 11.05% YoY as compared to INR 22894.67 crore during April to October 2006 period.

It carried 435.71 million tonnes of freight traffic during April to October 2007 up by 8.03% YoY as compared to 403.33 million tonnes carried during April to October 2006. The net tonne kilometres went up from 265201 million to 279367 million, registering an increase of 5.34% YoY.

The earnings from freight traffic during the month of October 2007 was INR 3976.29 crore up by 18.46% YoY as compared to INR 3356.77 crore during October 2006. It carried 66.05 million tonnes of freight traffic during the month of October 2007 as compared to 58.76 million tonnes of freight traffic during the corresponding period last year, registering an increase of 12.41% YoY. The net tonne kilometres went up from 38690 million to 41804 million up by 8.05% YoY.

The details of the total freight earnings during October 2007 are
INR 1461.51 crore from 27.97 million tonnes of coal
INR 648.48 crore from 11.92 million tonnes of iron ore
INR 367.66 crore from 6.93 million tonnes of cement
INR 249.04 crore from 2.97 million tonnes of petroleum oil & lubricant
INR 241.39 crore from 2.57 million tonnes of food grains
INR 255.00 crore from 2.41 million tonnes of iron & finished steel
INR 236.60 crore from 3.56 million tonnes of fertilizers
INR 452.18 crore from 8.84 million tonnes of other goods
INR 64.43 crore from 0.97 million tonnes of raw material for steel plants except iron ore

Ramsarup Industries secures 3 major orders

Ramsarup Industries Limited announced that it has bagged order aggregating INR 35.64 crores as under.
1. Essar Steel (Hazira) Ltd’s SEZ - INR 7.40 Crores
2. Reliance Petroleum Ltd’s SEZ - INR 6.24 Crore
3. Reliance Energy Ltd’s Rosa Power Project - INR 22.00 Crores

Ramsarup Industries Limited said that these orders will be executed within current quarter.

TATA Steel hosting conference on BF and sinter plant practices

It is reported that TAAT Steel is hosting a in a two day conference on the operating practices in blast furnaces and sinter plants at Jamshedpur, which is likely to be attended by the representatives of various private and public sector steel companies.

The conference will focus on four key subjects
1. Blast furnace performance
2. Raw material quality
3. Sinter quality for higher blast furnace productivity
4. Higher injection in blast furnaces.

Mr BK Das chief of Sinter Plant of TATA Steel told media that the idea of organizing such a conference is to promote cross learning.

About 70 top delegates from various steel plants would be attending the conference which will be inaugurated by Mr UK Chaturvedi VP of TATA Steel at the Shavak Nanavati Technical Institute. The delegates from different steel companies would present technical papers on the subject. The best technical paper would be entitled for an award.

This will be the 51st conference organized by the operating committee of blast furnaces and sinter plants.

ArcelorMittal statements put Jharkhand government in a fix

Ranchi Express reported that the contradictory statements coming from the ArcelorMittal camp have put the Jharkhand government in a fix.

Mr Malay Mukherjee management board member of ArcelorMittal recently said that he was satisfied with the development of proposed steel project in Jharkhand.

But Mr LN Mittal seemed to be not happy with the progress. Mr LN Mittal, in an interview to a private news channel in Luxembourg, said that he was not happy with the pace at which thing were moving with regard to ArcelorMittal's Orissa and Jharkhand projects in India.

India’s 2006-07 iron ore production up by 9.5% YoY

Dr T Subbarami Reddy union minister of state for mines said that India produced 180.91 million tonnes of iron ore in 2006-07 up by 9.48% YoY as against 165.23 million tonnes produced in 2005-06. The total production and consumption of iron ore from 2004-05 to 2006-07 in India is as below:

In million tonnes
Source: Indian Bureau of Mines

State wise dispatches of iron ore by private mine owners for export from April 1st 2003 to January 31st 2007 are given below

In tonnes
Source: Indian Bureau of Mines

As per information available with the Indian Bureau of Mines, the average ex mines cost of production of iron ore was INR 524 in the year 2005-06, apart from transportation costs and other taxes levied on the ore produced. While, as per information available with the Department of Commerce, the sale price of iron ore is around INR 3000 per tonne.

KSEB to upgrade transmission network in Thiruvananthapuram

Kerala State Electricity Board has decided to upgrade the transmission network in the Thiruvananthapuram region in view of the proposed development projects such as the Vizhinjam international container trans shipment terminal and the expansion of Technopark and has approved a master plan for the purpose.

The first phase of the master plan envisages setting up of a new 200 MVA transformer at Pothencode sub station at a cost of INR 32.35 crore. While, the second phase involves upgradation of the Veli sub station in Thiruvananthapuram.

The KSEB board looked into the grievance of the KSEB pensioners that their pension was not revised with retrospective effect as was done in the case of the salary of the employees and decided to revise the pension with retrospective effect from July 2003.

The power to the Thiruvananthapuram region comes from Edamon sub station in Kottayam district and Pothencode sub station near Thiruvananthapuram.

Orissa to talk with POSCO project victims in January 2008

Mr Padmanabha Behera steel & mines minister of Orissa has announced that negotiations with displaced villagers likely to be affected by the proposed 12 million tonnes per annum mega steel plant of POSCO Paradip port will begin in the first week of January 2008.

Mr Behera added that the land acquisition process for the POSCO project has started and notifications were being issued under Section 6 (I) of the Orissa Land Acquisition Act since October 17th 2007 for acquisition of 437.68 acres of private land identified for the steel plant. There have been proposals to take up village wise negotiations in the first week of January 2007 with people affected by the project and the necessary notification in this regard would be issued soon. Of the total 4,004.24 acres identified for the project, 437.68 acre belongs to private individuals.

However, the administration has failed to acquire a single inch of private land due to sustained resistance by inhabitants of 3 gram panchayats in Jagatsinghpur district. Not only has there been delay in acquisition of private land, the administration has failed to acquire government land as 2,951.56 acres were shown as forestland in official records.

Meanwhile, the POSCO authorities have announced start of production from April 2008 and Mr Naveen Patnaik chief minister has assured adequate security for this purpose. The state government has approved the lease for 505 acres of government non forest land identified for the POSCO project and out of it, 203 acres have already been handed over to POSCO. The other major roadblock for the project has been the delay in grant of iron ore mines lease.

India to meet Pakistan soon over IPI pipeline

PTI reported that India will meet Pakistan soon to resolve issues such as transit fee that have stalled a trilateral agreement on the proposed multi billion dollar gas pipeline originating from Iran. However, it did not give a time frame for such talks.

Mr Dinsha Patel union minister of state for petroleum & natural gas said that “A meeting between India and Pakistan on the Iran Pakistan India pipeline project is being proposed soon. Such multilateral projects involve protracted discussions, as all the aspects have to be carefully examined and deliberated upon to the satisfaction of the participating countries to protect each country’s interests as also to avoid any future problems in the successful operation of the project. Various important issues are under discussion among the participating countries. As such, the project can be finalised only after satisfactory resolution of the issues under discussion.”

India has not attended any talks on the pipeline over what it called unresolved bilateral issues with Pakistan since August 2007. India excused itself for a bilateral meeting with Pakistan and then boycotted the September 2007 trilateral meeting in Tehran, saying it first wanted to resolve the issue of transit fee payable to Islamabad for wheeling the gas through Pakistan. Iran and Pakistan have since held 4 meetings and are close to signing a bilateral pipeline deal, possibly next month.

India and Pakistan have reached broad understanding on the transportation tariff payable to Pakistan for wheeling the gas through the pipeline passing in Pakistan. But the two nations have not yet agreed on payment of a separate transit fee to Pakistan for allowing passage of the fuel. Iran, Pakistan and India are to separately build pipeline segments falling under their territories.

The pipeline would transport 90 million standard cubic meters per day of gas, out of which 30 million standard cubic meters per day would be for internal consumption in Iran. The remaining is to be split equally between India and Pakistan. Islamabad is seeking USD 0.493 per million British thermal unit as transit fee, while New Delhi has offered USD 0.15 per million British thermal unit for providing security and right of way to the pipeline.

Investors’ meet held at JSW Steel Vijayanagar Works

It is reported that an investors’ meet was held at JSW Steel Limited’s Vijayanagar Works at Toranagal in Bellary district with 28 delegates from renowned investment companies from places such as the US, the UK, China, Malaysia, Sweden, South Africa as well as India participated.

Mr Seshagiri Rao director finance of JSW Steel welcomed the delegates. Mr Y Siva Sagar Rao joint MD & CEO and Nr Vinod Nowal director commercial were also present.

JSW Steel officials explained their plans for expansion, steps taken to secure raw material linkages and the setting up of a beneficiation plant with a capacity of producing 15 million tonnes of beneficiated ore annually. The investors were briefed about plans to direct water from the Alamatti Dam to augment water supply.

India becomes new powerhouse in earth moving equipment industry

The just concluded Excon 2007, an international exhibition for the earth moving and construction equipment industry, has signaled India emerging not just as a manufacturing centre but also as a location for research, design and development for new products.

Mr Vipin Sondhi chairman of Excon 2007 and MD & CEO of JCB India said that “Excon 2007 has generated a lot of interest among industry players in India. It has been able to provide the necessary fillip to the Indian construction equipment industry. The McKinsey report states that India’s revenue and volume have recorded a 40% YoY between 2004 and 2006, reaching USD 2.3 billion today and uncovers a USD 40 billion opportunity for the industry between now and 2015.”

The study discusses the main trends that will shape the evolution of the industry and highlights the imperatives to realize the opportunity. However increasing competition from product imports from other low cost countries like China could potentially challenge the industry’s growth and is a force that industry players need to address proactively.

Mr KV Rangaswamy president (construction) of L&T said that the construction sector is expected to grow at the rate of 15% to 20% annually benefiting both manufacturers and raw materials suppliers. The major challenge, according to him, is to select the right equipment for the specific requirements of each project.

Mr Eric Leblanc MD of Volvo India Limited said that “It is very important to focus on the mining and infrastructure sectors and the need for efficient transport solutions, to keep pace with the expected growth rate of 9% to 10% annually. India is currently focusing on road development, investments in port development, airport modernization, and development of mining and infrastructure technology with the major investment expected from FDI and PPP route.”

Excon 2007, organised by the Confederation of Indian Industry, has generated business enquiries of around INR 2,000 crore. Over 280 companies from India and abroad participated, exhibiting over 700 products. The exhibition attracted over 45,000 visitors. It saw 56 overseas companies from Germany, UK, Korea, China, Italy, USA, Japan, Netherlands, Spain, Russia, France and Singapore participating.

Vizag Port confident of achieving target for 2007-08

Mr K Rathna Kishore chairman of Visakhapatnam Port Trust said that Visakhapatnam Port is hopeful of achieving the throughput target of 64 million tonnes set for 2007-08 by the ministry of shipping. In 2006-07, it had handled 56.85 million tonnes.

Mr Kishore said that “Till today, the Port has achieved a throughput of 40.2 million tonnes up by 6 million tonnes when compared to 34.2 million tonnes in the same period last year. We handled more than 22 million tonnes in less than 5 months in the second half of 2006. We hope to handle iron ore traffic of 18.5 million tonnes this year as against the 16 million tonnes target set by ministry of shipping."

He further added that the crude traffic this year would go up by about 2 million tonnes to reach the level of 20 million tonnes as against 18 million tonnes. The import of fertilizer raw materials too would increase by 1 million tonnes. Among other items whose throughputs were set for an increase included thermal coal, an estimated 3.5 million tonnes, compared to the targeted three million tonnes and coking coal, an estimated 8.2 million tonnes, compared to the targeted 7.7 million tonnes.

Coal ministry allocates coal blocks to power companies

Union coal ministry has allotted 15 coal blocks to 31 power companies following the decision of the energy co ordination committee under the chairmanship of the Prime Minister to de reserve such coal blocks that could not be taken up by Coal India Limited and its subsidiaries for mining in the near future.

Out of the total 15, 4 coal blocks with reserves of 1,857 million tonnes have been allocated to facilitate 2 ultra mega power projects in Orissa and Jharkhand, which would generate 8,000 MW. In addition, 2 coal blocks have been earmarked for ultra mega power projects of 2,000 MW capacities each in Chhattisgarh. Further, 8 coal blocks with reserves of more than 2,650 million tonnes would be allocated through competitive bidding route. This will further enhance power generation by 10,000 MW.

Sterlite will get 112 million tonne of coal from this block. It has also got 1 exclusive coal block in Chattisgarh, from which it will get 212 million tonne of coal. Together, they will get around 312 million tonne of coal. This coal will be used by its power subsidiary Sterlite Energy. From this allotment of coal, it will substantially reduce the cost of coal from INR 1,000 per tonne to INR 400 per tonne. Going forward, this is expected to have a positive impact on the margins.

Reliance Energy Limited has been allocated 2 coal blocks of Rampia and dip side of Rampia in Orissa. The quantum of allocation would enable Reliance Energy to set up pit head based over 1,000 MW power generation capacities.

Government of India has decided to make a joint allocation of Rampia and DIP side of Rampia non coking coal blocks in Orissa in favor of Lanco Infratech and 5 other companies so as to meet their share of coal requirements. The government has also requested the allottees to decide on the modalities for the allotment and operation of the mine within a month.

Lanco Infratech’s share of the coal reserves would enable setting up of a power plant with a generating capacity of 1,000 MW. Presently, Lanco is operating 518 MW of power generating capacities and is implementing power projects having cumulative capacities to the extent of around 3,500 MW. It has already initiated action to develop another 7,500 MW capacities including 1000 MW brown field expansion at its Amarkantak power project and Kondapalli gas power project and 6,500 MW Greenfield projects in Orissa, Jharkhand and Madhya Pradesh which are in various stages of development.

The construction and EPC division of Lanco is executing various orders worth more than INR 7,600 crore. It is also developing Lanco Hills, one of the largest integrated township properties in Hyderabad, which will have a developed area of more than 30 million square feet.

India produce 0.71 million tonnes aluminium in April to October

Dr T Subbarami Reddy union minister of state for mines said that, as per information obtained from the respective companies, the total quantity of aluminium produced in India by the primary aluminium producing companies during the last 3 years till date is as follows

In tonnes

NTPC seeks defense clearance for Uttarakhand hydro project

It is reported that National Thermal Power Corporation Limited has urged union ministry of power to intervene in the matter of seeking defence clearance for its 261 MW Rupsiabagar Khasiabara hydroelectric power project on Goriganga River in Pithoragarh district of Uttarakhand. NTPC had applied for the clearance in December 2006.

The matter was subsequently pursued with the defence ministry through reminders and meetings were held with the concerned officials from time to time requesting early clearance. All in vain, though.

NTPC further informed that the detailed project report of this project had been already prepared and submitted to the Central Electricity Authority for techno economic clearance. It intends to commence project activities soon after obtaining the approval from CEA.

NTPC is scheduled to commission the Rupsiabagar Khasiyabara hydroelectric power project in the beginning of the 12th Plan.

Lanco Infratech’s wind project receives UN certification

United Nations Framework Convention on Climate Change has registered Lanco Infratech’s 3 MW wind power project at Chikkasiddavanahalli village in Karnataka’s Chitradurga district as a clean development mechanism project under the Kyoto Protocol.

The Chikkasiddavanahalli wind project will help Lanco earn additional revenue by selling carbon credits generated by the units. Through this project there will be a reduction of around 4,823 tonne carbon dioxide equivalent greenhouse gas annually for 10 years ending November 18th 2017.

One way to cut emissions is buying certified emission reductions or carbon credits that are generated by clean development mechanism projects that reduce greenhouse gas emissions. A project becomes eligible to sell one credit if it reduces 1 tonne of its greenhouse gas emission. Total number of Indian projects registered with the UN is 291 or 34.24% out of total 850 projects. Developed countries are bound by the Kyoto protocol to cut greenhouse gas emissions between 2008 and 2012 by a collective average of at least 5% below their 1990 levels.

By 2012, India’s average annual greenhouse gas reductions are pegged at 27.60 million credits or about 15.84% of the world’s total annual reduction average of 174.27 million.

AP Genco adds additional 210 MW power capacity

BS reported that Andhra Pradesh Power Generation Corporation Limited has added 210 MW more capacity to the grid as part of the state government’s efforts to increase the availability of power through various means.

Genco officials feel that 210 MW fourth unit of the Rayalaseema Thermal Power Project, which is the last capacity addition in the state during the 10th Five Year Plan period, combined with other efforts, would help them maintain the grid without resorting to major power cuts in the rabi season.

The peak demand, which touched 187 million units in August 2007, is expected to go further up beyond 190 million units during the ensuing rabi season, giving a tough time to the authorities in managing the power situation. The state government had also prepared a back up plan to meet the peak demand to the tune of 300 MW through the utilisation of idle capacity of gas power projects by using naphtha till May 2008.

According to Genco officials, about INR 82 crore is required to be spent on close to 20,000 tonnes naphtha that will be enough to generate 300 MW for 15 days in a month. But the situation from June 2008 is going to be different. Most of the installed capacity in gas based projects, including close to 2,000 MW of new projects, would be up and running with the production of natural gas from Reliance's KG Basin fields, which is expected to begin from the middle of that month.

Global crude steel production in 10 months cross 1 billion mark

World crude steel production for the 67 countries reporting to the International Iron and Steel Institute was erroneously reported by IISI as 995.2 million tonnes for the first ten months of 2007. Whereas it has again broken the 1 billion ton mark in 2007, the fourth year in a row this figure has been reached.

IISI has said that “Due to a software error, the year to date total mentioned in the first paragraph of this story was revised on 21st November 2007.”

It added that “Total world production is 1,101.8 million tonnes for the first ten months of 2007, an increase of 8.1% over the same period of 2006.”

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Kobe Steel and SDI announce ITmk3 based plant

Kobe Steel Ltd announces that it has reached agreement with Steel Dynamics Inc for construction of an iron making plant using Kobe Steel's ITmk3® Process at Hoyt Lakes in Minnesota. Total investment is projected to reach USD 235 million and the new facility, which will have an annual production capacity of 500,000 tonnes per year would start in mid 2009.

This first ITmk3 commercial plant will be constructed and operated through a joint venture, Mesabi Nugget Delaware LLC, which will produce and sell the iron nuggets. SDI will invest USD 85 million in the venture, holding an 81% equity share, while Kobe Steel will invest USD 20 million for a 19% share. SDI will manage the construction of the facility and operate it.

Kobe Steel will provide the ITmk3 process license, engineering services, primary production equipment, and technical support. Kobe Steel expects the commercial plant to provide essential operating data on plant and process effectiveness.

The ITmk3 Process is an innovative next generation technology that in a continuous process rapidly produces high grade iron nuggets for use in steelmaking. High purity iron is produced in the form of small, inert nuggets that are ideal in meeting the pig iron requirements of electric arc furnace mini mills producing high grade flat rolled steels. In addition, the process is environmentally friendly, generating about 20% less carbon gases than in the traditional blast furnace/BOF iron making process used by integrated steel mills.

SDI anticipates that all of the nuggets produced by the ITmk3 plant will be consumed in its mini mills. In a related initiative, SDI is acquiring an existing mine near the ITmk3 plant site on the Mesabi Iron Range and plans to construct a facility for concentrating iron ore. The processed iron ore will be used as a raw material feedstock for the nugget plant.

ArcelorMittal and Kalagadi form manganese JV in South Africa

ArcelorMittal and South African manganese development company Kalagadi Manganese announced a strategic equity partnership in respect of the development of Kalagadi's manganese resources. The 50:50 JV will see the development in South Africa of a manganese mine, beneficiation plant and sinter complex in the Northern Cape Province and a smelter complex in Coega.

Kalagadi Manganese's project is situated in the Kuruman/Hotazel district of the Northern Cape Province. The Parties intend establishing a manganese ore mine and sinter plant at Hotazel which will ultimately produce 2.4 million tonnes of sinter product per annum. It will also see the establishment of a 320,000 tonnes per annum ferromanganese alloy production facility in the Coega Industrial Development Zone in Port Elizabeth, which will account for at least 50% of ArcelorMittal's needs. Drilling to date has confirmed the presence of a high grade manganese ore resource sufficient to support a life of mine in excess of 20 years.

The Kalagadi Manganese Basin is 80% owned by Kalahari Resources, majority black women owned and controlled company. The remaining 20% is be held by the South African state owned financier, the Industrial Development Corporation. The JV transaction is subject to the fulfillment of various conditions, including the obtaining of the necessary regulatory approvals required for the implementation of the transaction.

Mr Malay Mukherjee member of the group management board, responsible for Asia and Africa Mining, Stainless at ArcelorMittal said that "We are pleased to have been selected as the joint venture partner on this exciting project. The Kalagadi Manganese project will not only prove to be an important and competitive source of manganese for our plants but a notable contribution to the economy of South Africa." He added that "This is a further sign of our commitment to South Africa, a country which forms an important part in our expanding global operations."

Ms Daphne Mashile Nkosi chairperson of Kalagadi Manganese, said that "We are delighted to have attracted a strategic equity partner of the calibre of ArcelorMittal who are the biggest player in the steel industry in the world. The deal is particularly important as it comes at a time when we are spearheading the trend towards backward integration into raw materials. We believe our new partner will add enormous value to the business particularly in respect of enhancing efficiencies. ArcelorMittal's operating track record in South Africa is a significant advantage to the implementation and operation of the project."

CVRD signs MoU with Dongkuk for Ceara slab plant

Brazil Companhia Vale do Rio Doce announced that it signed a MoU with South Korea Dongkuk Steel Mill Co on November 20th 2007, for the construction of an integrated steel slab plant in the Industrial District of Pecém in the Brazilian State of Ceará.

The viability study of this project is expected to be completed in coming months. The project encompasses the construction of an integrated steel slab plant, which will use coal, with an initial production capacity of 2.5 million tons per year with the possibility to be expanded to 5 million tons per year. The investment for the first phase of this project is expected to be USD 2 billion.

ArcelorMittal announces coal mining JV in Mozambique

ArcelorMittal announced a JV partnership with the Mozambique registered company Black Gold Mining Lda.

Under the terms of the agreement ArcelorMittal will acquire 35% equity in the joint venture company, Rio Minjova Mining and Exploration Company, for an initial payment of USD 2.5 million. Black Gold Mining will transfer its coal licenses, totaling 49 360 hectare, in the Rio Minjova Area situated at the eastern end of the Moatize Minjova sub basin in the Tete Province of Mozambique.

ArcelorMittal has an earn in option to become the majority shareholder in the joint venture company, subject to a further payment of USD 2.5 million and the confirmation of proven and probable coking coal reserves.

Aleris selling US Zinc to Votorantim Metais Ltda

Aleris International Inc a producer of aluminum sheet, extrusions and various other products has an agreement to sell its US Zinc subsidiary to affiliates of Votorantim Metais Ltda for USD 295 million. The final price is subject to approvals and closing conditions.

US Zinc is arranged as five divisions in US
1. Its Zinc Oxide division is one of the world’s largest manufacturers of zinc oxide, with two US locations where it manufactures zinc oxide from high grade and special high grade zinc metal, as well as from secondary zinc
2. Its Zinc Metal division in Houston recycles secondary zinc, supplying the galvanizing industry
3. A trading arm
4. A zinc dust manufacturing unit
5. IZI, a recycler of zinc collected from continuous galvanizing dross.

In addition to its six US locations, US Zinc operates a new zinc oxide plant near Shanghai.

Mr Steven J Demetriou chairman & CEO of Aleris said that "The sale of US Zinc will allow Aleris to focus on our core aluminum business. We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris."

Votorantim is a Brazilian mining and steelmaking group, with mines in Brazil and Peru producing zinc and nickel. It is reportedly the largest zinc producer in Latin America with output reaching 400,000 tones per year and production of nickel is listed at about 26,000 tonnes per year.

US Steel challenges ITC decision on large dia pipes from Mexico

United States Steel Corporation announced its intention to challenge a recent determination by the US International Trade Commission that revocation of an antidumping duty order on large diameter welded line pipe from Mexico would not be likely to cause material injury to domestic producers. Papers filed indicate that US Steel is appealing this decision to a bi national dispute resolution panel to be convened under the terms of the North American Free Trade Agreement.

US Steel's appeal will seek a reversal of the ITC's determination and ask that the antidumping order on large-diameter line pipe from Mexico be reinstated. No timetable for briefing or decision in this appeal has yet been released.

Mr John P Surma chairman & CEO of US Steel said "This is a significant product for domestic producers and we strongly disagree with the ITC's conclusion that dumped imports from Mexico will not harm the domestic industry. In fact, we are already seeing negative effects from the ITC's decision caused by low priced imports from Mexico."

Mr Surma added that "US Steel remains committed to its longstanding policy of fighting unfair trade in order to ensure that conditions in the United States reflect true market competition.”

Brazil antitrust agency okays CVRD's Inco purchase

It is reported that Brazilian antitrust watchdog, Cade, said on Wednesday that it had approved the acquisition of Canadian nickel miner Inco by the local Companhia Vale do Rio Doce.

The spokesman for Cade said the decision was unanimous. The approval was widely expected by the market.

CVRD announced it would buy Inco in October of 2006 for around USD 17 billion, making it the second biggest integrated miner in the world.

Oil prices strike record high USD 99.29

World oil prices surged to a record peak above USD 99 per barrel on Wednesday on the back of the falling US dollar and tight global crude supplies.

As per reports, in early trading on Wednesday, New York’s main contract, light sweet crude for January delivery, rocketed to an historic USD 99.29. In London, Brent North Sea crude for January delivery jumped to an all time pinnacle of USD 96.53 per barrel. New York crude later stood at USD 97.84 per barrel down 19 cents from Tuesday’s close. London Brent oil eased 27 cents to USD 95.22.

Analysts said the psychological barrier of USD 100 is within grasp. They said “The mythical USD 100 per barrel is of course within reach for today with or without the help of the weekly statistics.”

Rain may cut Indonesian coal exports by 25% YoY in 2007

Credit Suisse Group said that Indonesian coal production may be reduced by as much as 25% this year because of excessive rain putting a strain on shipments.

As per report, Indonesia’s largest coal miners PT Bumi Resources, Banpu plc and Straits Asia Resources Ltd may have lost up to 20 million tonnes in the June and September quarters.

Straits Asia, a Singapore listed company with mines in Indonesia, cut its 2007 production target by 15% this year after prolonged rain hurt output. Banpu, listed in Bangkok, declared force majeure on shipments in the June quarter. Bumi, Asia’s third-largest coal producer by sales, reduced its coal sales estimate by 2%.

However, as per analysts supply should be stronger in the fourth quarter as mines ramp up.

Benchmark coal prices have risen 64% this year as Indonesia missed contractual shipments. Inadequate port and rail facilities in Australia and increased imports by China have helped to push prices to a record for four consecutive weeks.

BHPB bid for Rio - Mr Kiernan voices support

It is reported that mining entrepreneur Mr Michael Kiernan has come out in support of BHP Billiton's bid for Rio Tinto.

Mr Kiernan said that a combined BHP and Rio would create more stability in international commodity prices, rather than pushing them higher. He said "For BHP it will maintain their dominant position, not to control, or monopolies, but to be able to influence orderly commodity pricing for iron ore and coal.”

Mr Kiernan said that "Kloppers and his outfit are looking at the stability of BHP for the next 10 or 20 years."

MEPS forecast Swedish HRC prices to be up by 5% YoY in 2007

UK based MEPS said that “Swedish Hot Rolled Coil average price this year, is expected to be 5% above the 2006 figure at a new record high of almost SEK 4900 per tonne (EUR 530).”

It added that “During 2008 this figure is forecast to move up another 2.3% with the annual value topping SEK 5000 per tonne. The quarterly average transaction value for fourth trimester business is expected to drop by SEK 115 per tonne from the previous period. Negative pressure set in, causing customers to delay purchasing.”

MEPS said that “Mills are likely to push for rises ahead of the implementation of the new iron ore contract in April 2008 but these may not take hold initially. Customers are expected to begin restocking in the New Year. This should support transaction price advances in the second and third quarters. However, as a result of continued import pressure and a weaker economic climate, these could be only modest. A seasonal downturn is anticipated in the final period as year end de-stocking reduces buying activity.”

TPG Axon Capital discloses 5.7% stake in Reliance Steel

It is reported in a 13G filing after the close on Reliance Steel & Aluminum, TPG Axon Capital Management disclosed a 5.7% stake in Reliance Steel. The firm did not show a stake in Reliance Steel at the quarter ended September 2007. A 13G indicates a passive stake.

Reliance Steel & Aluminum Co is a metals service center company in the United States.

TPG Axon Capital is a leading global investment firm with over USD 5.8 billion of capital invested in public and private markets around the world. TPG Axon spun out of buyout firm Texas Pacific Group. TPG Axon is led by the former head of Goldman Sachs' Principal Strategies Department, Dinakar Singh. Through offices in New York City, Hong Kong and Tokyo, TPG-Axon Capital has invested across a broad range of industries in more than 20 different countries, including investments in healthcare, pharmaceuticals, financial services, technology, energy and basic materials and retail."

German iron ore import down by 61% YoY in July 2007

YIEH reported that German’s iron ore import volume was 1.86 million tonnes in July 2007 down by 60.6% YoY than 4.731 million tons in July 2006.

The statistics of German’s iron ore import in July are as under
1. Brazil exported some 1 million tonnes
2. Netherlands provided 571,000 tonnes
3. Mauritania exported 81,000 tonnes
4. South Africa exported 71,000 tonnes
5. Canada exported 64,000 tonnes
6. Australia exported 61,000 tonnes.

The iron ore import volume totaled 25.74 million tonnes from January to July 2007, up by 2.8% YoY than 25.035 million tonnes in January to July 2006.

South Korean consortium to join coal project in Australia

It is reported that a Korean consortium formed by state and private companies is seeking to join a coal development project in Australia. The consortium, consisting of the Korea Resources Corp, the Korea Electric Power Company and other private power companies is in talks with Australian energy officials over joining a bituminous coal development project in the Australia’s state of New South Wales.

Korea ministry of commerce, industry and energy said that to this end, ministry officials and company representatives recently met with officials from the Australian Ministry of Industry, Tourism and Resources in the southeastern city of Gold Coast to request cooperation from local authorities.

Korea is stepping up efforts to boost overseas resource projects in recent years in an effort to become more independent in energy sustainability, as the country is heavily dependent on energy imports.

According to a ministry survey conducted earlier in the year the country’s investment in overseas resource development is expected to jump more than 80% this year to AUD 3.78 billion, mainly on increased spending in oil development.

Brasilata sees tin plate output up by 10% in 2007

BNamericas reported that Brazilian metal packaging producer Brasilata expects to process 45,000 tonnes of tin plates this year up by 10% YoY from 41,000 tonnes in 2006.

Mr Antonio Carlos Teixeira Álvares CEO of Brasilata told BNamericas that "The year started out weak in terms of demand, but it reacted significantly in the second half and should bring great growth for Brasilata, with an expected increase of about 10% in physical volume produced.”

He added that Brazil's civil construction sector has positively influenced the company's business in 2007, as the packaging producer supplies products to the paint industry, which accounts for more than 90% of business. However, we do not have plans to install new units in the short term.

Brasilata has operating units in the states of Rio Grande do Sul, São Paulo and Goiás and also provides products to the food industry.

Japanese wire export reaches 33,000 tonnes in September

According to the related information, Japan’s wire export hits 33,405 tons in September, which settled at the average price is FOB USD 3,665 per tonnes.

Among them, the export to China was 3,665 tons at a price of FOB USD 685.1 per tonnes. America was followed by 12,386 tonnes and the average price was at FOB USD 732.8 per tonnes.

Taiwan also imported 3,223 tons of heavy plate from Japan and the import price was at FOB USD 535.5 per tonnes. South Korea was 4,621 tonnes and the average price was at FOB USD 614.4 per tonnes.

Limited strike action continues at PT Inco

Metals Insider reported that partial strike action is continuing at Indonesian nickel matte producer PT Inco. The strike action starts last week with some 500 workers walking off the job to apply pressure on the company for higher wages.

As per the latest report the number of strikers has dropped to around 200 as negotiations continue with union leaders.

The company at the moment seems relaxed about the impact of the strike, saying it still expects to meet its 2007 production guidance of 160 to 165 million pounds of contained nickel.

KPS completes acquisition of Olin Corporation

KPS Capital Partners announced that it completed its previously announced acquisition of the worldwide metals business of Olin Corporation through a newly formed company, Global Brass and Copper, Inc for USD 400 million of cash consideration and a customary working capital adjustment.

GBC operates manufacturing facilities in East Alton, Illinois; Montpelier and Bryan, Ohio; Waterbury, Connecticut; and Cuba, Missouri. It also operates joint ventures in Japan and China, sales and customer support offices in Japan, China, and Singapore, and the A.J. Oster metals service center and distribution business. GBC and its subsidiaries will sell products under the Olin Metals, Olin Brass and Chase Brass brand names.

Mr Michael Psaros a managing partner of KPS, said that "KPS looks forward to creating the leading company in the global brass and copper industries by leveraging GBC's strong market position, global scale, unequaled intellectual property, differentiated technology and unique high-performance alloy products. We expect that GBC will thrive as a more focused, independent enterprise under John Walker's leadership."

Financing for the acquisition was provided by Wachovia Bank NA, acting as Agent, and General Electric Capital Corporation and CIT, which acted as Co Lead Arrangers, in connection with a USD 575 million senior secured credit facility and KPS Capital Finance Management LLC, which acted as Agent in connection with a USD 70 million senior secured term loan. Paul Weiss Rifkind Wharton & Garrison LLP acted as legal counsel to KPS and GBC.

Differing views on zinc market scenario during this year

According to the International Lead and Zinc Study Group the global refined zinc market flipped back to deficit in September after a one month move to surplus in August 2007. It said that September production usage deficit is estimated at 23,100 tonnes and the August surplus is now estimated to have been 8,200 tonnes.

The cumulative market balance over the January to September 2007 period is assessed as a 46,000 tonnes deficit. This is very close to the 47,000 tonnes deficit projected for the full year at the ILZSG’s September meeting of its Statistical and Forecasting Committee.

On the other hand the World Bureau of Metal Statistics said it calculates the global refined zinc market recorded a supply-demand surplus of 50,000 tonnes over the first nine months of this year.

That opens up an interesting difference of opinion between World Bureau of Metal Statistics and the International Lead and Zinc Study Group.

Global scrap prices review

Rusmet reported that US scrap market remained weak last week and the main reason comes from a price decrease of USD 25 per short tons for car bundle scrap at a tender. US industrial scrap prices have reduced by USD 30 per short ton.

For Japan’s market, H2 scrap price is at JPY 35,452 per tones in Kanto and Kansai areas. Besides, mills are cutting their purchasing prices. Nippon Steel will reduce its scrap purchasing price at four mills by JPY 500 per tonnes.

UK’s scrap prices have been cut by USD 21 per tonnes.

Patriot Coal announces results for the Q3

Patriot Coal Corporation announced its financial results for the Q3 of 2007 and January to September 2007, periods in which the company was wholly owned and operated by Peabody Energy Corporation. Patriot was spun off from Peabody, effective October 31, 2007.

Patriot Coal Corporation reported pro forma net loss of USD 18.4 million and USD 2.5 million for the Q3 and January to September 2007, respectively. Excluding pro forma adjustments, net loss on a historical basis was USD 39.5 million and USD 57.2 million for the Q3 of 2007 and January to September 2007 respectively.

Patriot Coal said that its pro forma EBITDA for the Q3 of 2007 and January to September 2007 was positive USD 11.7 million and USD 97.2 million, respectively. On a historical basis, Patriot reported third quarter EBITDA of negative USD 13.1 million. Historical EBITDA for the January to September 2007 was USD 22.1 million.

Q3 of 2007 result highlights
1. Spin off from Peabody Energy complete
2. Patriot management team and Board of Directors in place
3. Initial steps taken to improve mining operations
4. 2008 markets strengthening for Patriot's products

Mr Richard M Whiting president & CEO of Patriot said that "We are pleased to provide this inaugural earnings release for Patriot Coal and to complete our spin off from Peabody Energy effective October 31. During the year, we established our new management team and Board of Directors. They have already established sound corporate governance practices, which we believe are critical to our success and the creation of shareholder value."

Patriot Coal Corporation is a leading producer and marketer of coal in the eastern United States, with eight company-operated mines, two joint venture mines and numerous contractor-operated mines in Appalachia and the Illinois Basin. The company ships to electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.2 billion tons of proven and probable coal reserves.

PRO TEC Coating wins Malcolm Baldrige award

The US Department of Commerce has selected PRO TEC Coating Company, a provider of world class coated sheet steel in coil form primarily to the quality critical automotive industry, as a recipient of the prestigious Malcolm Baldrige National Quality Award for 2007. PRO-TEC is one of only five companies to win the award in 2007, and it is the only company to win in the Small Business category.

Each year, the US Department of Commerce selects a small number of companies in seven areas for the quality excellence award, which is traditionally presented by the president of the United States. The Baldrige Award recognizes organizations for their achievements in quality and performance, and it raises awareness about the importance of performance excellence as a competitive edge. PRO TEC won in the Small Business category defined as employing 500 people or fewer. The Baldrige Award is the top honor a US company can receive for quality achievement and performance excellence. Criteria for the award include: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management and business results.

Mr Paul Worstell president of PRO-TEC said that "Receiving the Malcolm Baldrige National Quality Award is a tremendous honor for PRO-TEC and we'd like to thank the US Department of Commerce for this recognition. This award is a tribute to our dedicated PRO-TEC associates and to our parent organizations, United States Steel Corporation and KOBE Steel, whose traditions of quality and constant improvement are the foundation for our success at PRO-TEC."

The US Commerce Department's National Institute of Standards and Technology manages the Baldrige National Quality Program in close cooperation with the private sector. The award is named after Malcolm Baldrige, the former US Secretary of Commerce from 1981 to 1987, who was known as a proponent of quality management as a key to the long term prosperity and strength of the nation. For more information about the Malcolm Baldrige Award program and the National Institute

Mount Gibson hopeful about WA port

Constraints at Geraldton Port in Western Australia, which have impacted Mount Gibson Iron Ltd's export volumes, are expected to ease from January next year when a new ship loader begins operations. The iron ore producer is the port's largest customer and will account for 60% of the new ship loader's 10 million tonnes per annum capacity.

Mr Luke Tonkin managing director of Mount Gibson at the annual general meeting told shareholders on that the company had found the port to be inefficient and costly. He added that the port constraints had forced the company to stockpile one million tonnes of iron ore from its three million tonnes per annum Tallering Peak operation, situated east of Geraldton. He said that "In the second half of this fiscal year, we become unconstrained by Geraldton Port when the new ship loader is up and running."

The company plans to access to the main pit at its Koolan Island operations in about 18 months time and is currently mining from satellite pits. The main pit at Koolan Island is considered by Mr Tonkin to be Mount Gibson's "main prize".

Mount Gibson recommenced iron ore production early this year and the first shipment followed in June. Mount Gibson expects to mine the main pit at Koolan Island in 18 to 24 months time and hopes to reach its targeted ore production rate of four million tonnes per annum in the fourth quarter of 2009. Mr Tonkin said that "The Koolan main pit will dominate earnings in three to four year's time.” He added that Mount Gibson has further merger and acquisition opportunities.

Timken makes bearing supplies for SeverCorr

The Timken Company announced that its bearing assemblies were used as components in the major production systems supplied by SMS Demag AG for the new SeverCorr steel plant near Columbus in Miss.

Mr Michael J Connors president of Timken (process industries) said that "Timken experts customized the bearing assemblies to maximize mill performance and product quality. It’s the combination of global product technology with local service that makes the difference to customers like SMS Demag.”

SeverCorr a JV between Russian and US steelmakers ranks among the world’s most modern producers. Initially, SeverCorr will produce 1.5 million tons annually of high quality flat rolled steel for use in the automotive, construction, agricultural and appliance industries. In April, the company announced plans for a second production line to more than double the mill’s capacity.

SMS Demag provided melt equipment, hot and cold rolling mills, galvanizing and pickle lines and a temper mill for the new plant. The Timken® bearing assemblies are installed in gear units, roller tables and continuous casting equipment, as well as in the roll necks of the hot and cold rolling mills.

Project aims to turn pipeline waste energy into electricity

It is reported that a trial is under way into the feasibility of converting the waste energy from a major Western Australian gas pipeline into electricity. The aim is to convert the heat energy escaping the pumping stations along the Dampier to Bunbury natural gas pipeline. The project would provide enough electricity to power 15,000 homes each year.

Mr Matthew Rosser from Australian Sustainable Energy Developments said that it would cost about 25% more than coal based power. He said that "It has not been done anywhere in the world before, it's just one of those innovative ideas that seems to have gone under the radar and I suppose the cost of this is somewhat higher than generating electricity from fossil fuel power stations."

S&P raises ArcelorMittal credit rating to BBB+

Market Watch reported that Standard & Poor's raised has raised its credit rating of ArcelorMittal to BBB+ from BBB, citing improved finances and a stable outlook for the world's largest steelmaker. The move lifts about USD 26.6 billion of debt on the company's balance sheet a notch up the ladder of investment grade securities.

Ms Elena Anankina a credit analyst of Standard & Poor in a research note said that "The upgrade reflects ArcelorMittal’s free cash flow generation, USD 9.6 billion in the 12 months to September 30th 2007, which results in favorable credit metrics and enables the group to finance its growth ambitions largely from internally generated cash.”

ArcelorMittal, forged in the 2006 merger between Arcelor SA and Mittal Steel Co NV has earmarked USD 15 billion over the next five years to expand the business through acquisitions. Given the company's financial stature and cash flow, Ms Anankina said that its capital expenditures program is unlikely to come under pressure.

The merger also produced an estimated USD 1.3 billion in savings, while its ability to now supply 45% of its own iron ore further shields the company from volatile price swings on the commodity side of the business.

Bumping up the company's debt rating to BBB+ will also help it land cheaper financing whenever it elects to tap the credit market.

ArcelorMittal has forecast pre tax income of USD 19.2 billion to USD 19.4 billion in 2007 up from USD 15.3 billion in 2006.

Panama Canal’s proposed third locks passes EIA

It is reported that the National Environmental Authority of Panama has approved the environmental impact study on the construction of a third set of locks for the Panama Canal to expand a major passageway for world shipping.

The announcement comes after National Environmental Authority of Panama presented its approval resolution to the Panama Canal Authority environmental management and monitoring officer.

National Environmental Authority of Panama said "The National Environmental Authority of Panama’s certification of approval validates the Panama Canal Authority’s commitment to the highest standards of environmental management and stewardship for the Canal expansion project. We are pleased that they have acknowledged the thorough and comprehensive approach we have taken to expand the Canal in an environmentally-friendly and responsible manner."

To ensure that the environmental impact study guidelines are followed, the Panama Canal Authority and the National Environmental Authority of Panama have both vowed to monitor the construction of the third set of locks.

Japanese nickel based SS scrap price bounce back from bottom

YIEH reported that in order to rush domestic nickel based stainless steel scrap resources, Japanese distributors have raised their purchasing price to JPY 316,000 per tonnes comparing to the early July, the price has hiked by around JPY 100,000 per tonnes. It shows that the price of nickel based stainless steel scrap obviously stands still at JPY 310,000 per tonnes level.

According to analysis, Japanese export on stainless steel scrap to China and South Korea is getting more active, the stainless steel mills back to production from November, and therefore it pushed the price of stainless steel scrap up.

With European and USA’s stainless steel markets recovering, some of oversea traders forecast the price of nickel will increase steady. It could reach to USD 40,000 per tonnes.

GVM Metals to raises GBP 2 million to develop its SA coal projects

GVM Metals Limited announced that it has completed a conditional fundraising of GBP 42.25 million by way of a placing of 65,000,000 new ordinary shares in GVM at 65 p per share. The monies have been raised from clients of Blue Oar Securities Plc and Mirabaud Securities Limited as joint brokers to the Company.

The Placing is subject to shareholder approval at the Company's Annual General Meeting to be held at Perth in Western Australia on November 28th 2007 at 10.00 AM. Subject to and following approval of resolutions at the AGM, application will be made for the new ordinary shares that are the subject of the placing to be admitted to trading on AIM, ASX and the JSE as required. The Placing Shares will represent approximately 23% of the enlarged share capital immediately following admission of the Placing Shares to trading on AIM.

The transaction will be used to fund the acquisition and development costs relating to the Company's Mooiplaats and Baobab projects, as well as for exploration and acquisition expenditure working capital and expenses.

Mr Simon Farrell managing director of GVM Metals said that "We are very pleased to announce this significant milestone for the Company. The scale and pricing of this placement demonstrates the support for the potential of the Company's assets in a currently testing market. The proceeds of the transaction will be utilized in accelerating GVM's projects over the next 18 months in order to position the Company as a significant coal producer in South Africa."

Siemens to supply melt shop to Egyptian Sponge Iron & Steel Company

Siemens Metals Technologies received a major order from Beshay Steel for the engineering and supply of a complete melt shop which will be installed at Sadat City in Egypt.

The new steel mill, Egyptian Sponge Iron & Steel Company, will include an electric arc furnace, ladle furnace and billet caster. The annual production capacity will be approximately 1.3 million tonnes of steel which will be rolled to bars and sections. The first heat is expected in March 2009.

Siemens Metals Technologies received the order for the engineering and supply of a 165 tonnes electric arc furnace, a 165 tonnes ladle furnace, a 6 strand high speed billet caster, the dedusting system, electrics and automation in addition to auxiliary systems such as the engineering and supply of core components for the water-treatment facilities and plant layout.

Up to 100% hot direct reduced iron from a new Midrex direct reduction plant will be directly fed into the EAF via a hot link system for major savings in electrical energy costs. The EAF will be equipped with refining combined burner lances which will enable supersonic oxygen lancing for accelerated initial melting, post combustion and oxygen lancing towards the end of the heat for steel refining purposes. In the ladle furnace the steel temperature and composition of the steel bath will be adjusted for the steel requirements of casting and the end product. The billet caster will be equipped with Dynaflex oscillators for online control of the mold-oscillation parameters and Diamold high speed casting technology. The caster will also be equipped with hot charging facilities for the adjacent rolling mill.

Beshay Steel headquartered at Cairo currently operates two steel mills in Sadat city. These mills produce approximately 1 million tonnes of bars and wire rod primarily for the local construction industry. Due to the rapidly expanding need for steel products throughout the entire region, Beshay Steel decided to build a third steel works in Sadat City adjacent to the existing facilities, which is named Egyptian Sponge Iron & Steel Company.

Gulf countries become emerging consumer of China's steel products

According to UBS' research report on Chinese iron & steel industry published on November 20th 2007, there are some changes in China's steel product export destination this year. Except the EU, South Korea, the US and other traditional export destinations, volume of steel products exported to Iran, Saudi Arabia, UAE and other gulf countries have rocketed.

Among the total, Iran has imported 2.3 million tonnes of steel products from China by this July up by 22 times YoY. Steel products exported to UAE and Saudi Arabia soared by 2.96 times and 3.49 times YoY respectively.

Industrial analysts told the reporter that such gulf countries greatly benefited from global rising oil price last year, so, they enhanced their own infrastructure. Under such circumstances, they imported an amount of construction steel products, including rebar and wire rod.

Foreign banks allowed to work in Iran

MNA reported that Iran has issued permits for foreign banks’ presence in the country.

Mr Davud Danesh Ja’fari Iranian economic affairs and finance minister voiced his country’s preparedness to cooperate with regional states in economic activities.

Referring to the three foreign banks which have received the permits, he said that the branches of the banks will be inaugurated in Tehran in the near future.

He called for further boosting cooperation by saying that “Although the Organization of the Islamic Conference has 50 members, they meet only 15% percent of each other’s need.”

Pakistan FDI crosses billion dollar mark in four months

Pakistani Business Recorder has reported that, despite political crisis in the country, foreign direct invest has crossed one billion dollar mark up by 4% YoY during the first four months of current fiscal year 2008.

The State Bank of Pakistan statistics showed that during the first four months of 2008 fiscal year, the FDI crossed one billion dollar marks, reaching USD 1.2994 billion. The FDI stood at USD 962.5 million dollars during first quarter of 2008 fiscal year as against some USD 1.2501 billion dollars during the same period of last fiscal year.

The report cited Mr Muzammil Aslam an economist as saying that "The FDI statistics are very encouraging and despite the political battle, foreign investors are investing in the Pakistan. It showed that the country's economic fundamentals were strong and had ability to attract foreign investors despite the last few months' uncertainty. Despite the political crisis, foreign investment figures are a positive sign and it means that still foreign are interested to invest in the Pakistan.”

He added that "I believe that after presidential election, foreign investors will once again invest their money in the Pakistani market," he added. During October, the net investment, including FDI and PI, showed significant growth of 63% from USD 990.1 million to USD 1.161 billion showing an increase of USD 619.9 million.”

The State Bank of Pakistan statistics revealed that portfolio investment declined by 31.3% YoY. The net foreign investment, including the FDI and portfolio investment, however, showed a declined of 5.4% YoY. Portfolio investment dipped by USD 141.3 million to USD 310.6 million during the first four months as against USD 451.9 million dollars in corresponding period of last fiscal. Net foreign investment has declined by 5.4% YoY to USD 1.610 billion during the July to October of current fiscal mainly due to portfolio inflows ahead of political uncertainty in the country.

China Metallurgical Group wins Afghan copper mine bid

It is reported that State owned China Metallurgical Group won a tender on November 20th to develop a large Afghan copper deposit in a USD 3 billion project.

As per report it is the largest foreign investment in Afghanistan's history.

Alumco wins aluminium façades contract for Ocean Heights Tower

Alumco LLC, a specialized aluminium façade contractor and UAE's largest manufacturer, has won a major contract worth AED 100 million to supply its high quality aluminium façades to the unique Ocean Heights Tower at Dubai Marina in Dubai.

The aluminum façade system of Ocean Heights Tower which is designed, fabricated and installed by Alumco is a fully unitized and customized system to suit the structural and esthetical requirements of the building. In addition the tower will be given a cold warping effect on the panels to maintain a smooth curve over the entire height of the building, matching with its twist in shape. Strategically situated at Dubai Marina, the tower is surrounded by resorts, boutique hotels and breathtaking futuristic developments. The project will home 680 luxury freehold condominiums, overlooking magnificent vistas on all sides and with unique curves and twisting motion as one ascends.

Alumco will be supplying its unitized system for the project which will consist of 20,000 square meter unitized curtain wall, 14,500 square meter 4mm composite panel with insulation, 27,000 square meter stick curtain wall sliding doors & swing doors and 5,300 square meter 3mm thick aluminum cover sheet.

Mr Samer Barakat MD of Alumco said that “We are very pleased to be associated with this unique tower project since it is an iconic project that will add to the beauty of the highly prestigious Dubai Marina area. Being awarded this project reflects the confidence our partners have in us, being one of the leading providers of premium quality aluminum.”

Ocean Heights, developed by DAMAC properties, is a super tall skyscraper structure designed by the global architects Aedas. It is currently under construction at Dubai Marina, by Arabtec Construction LLC and Engineering Consulting Group is acting as the main project consultant. The 82 floors tower will stand 310 meters tall and is expected to be complete by the mid of 2010.

Oman and Indonesia investing in 2 Iranian petro complexes

Mehr News Agency reported that Iran, in collaboration with Oman and Indonesia, is constructing the Hormoz and Hengam petrochemical complexes to be located in the Assaluyeh region of southern Iran.

Mr Mohammad Hadi Rahbar official of National Petrochemical Company said that the Indonesian investment accounts for 50% of the funding for the Hengam Complex, which will manufacture chemical fertilizer, urea and ammonia.

He added that Southeast Asia, China, India, Europe, the Middle East and South America constitute the main target markets for Iran’s petrochemical exports.

Abu Dhabi Marine awards EPC contract to NPCC and Technip

Khaleej Times reported hat National Petroleum Construction Company and Technip have jointly won USD 370 million engineering, procurement and construction contract from Abu Dhabi Marine Operating Company to expand gas processing facilities at Lower and Upper Zakum Fields in Abu Dhabi.

The project aims to increase processing capabilities of associated gas at the fields to up to 440 MMSCFD in order to cope with future oil production increases.

Iran sees bright future in steel industry prospects

IRIB recently quoted Mr Mohammad Ali Harati Nik deputy minister of industries & mines of Iran as saying that the plan to construct 8 steel factories indicates Iranian government’s attention to less developed areas of the country.

Mr Nik, during a visit to the 800,000 tonnes steel production unit in Charmahal Bakhtiari said that the projects will be financed from national funds and the Hard Currency Reserve Account and will become operational in 4 years.

Meanwhile, Mr Mohammad Rahim Rasti MD of National Steel Company said that the annual steel production stands at 10 million tonnes nationwide and once all steel projects are completed, production will increase to 29 million tonnes.

Mr Nik further added that “This in itself is in line with policies to develop the country. By March 2008, projects in Hormuzgan and Isfahan will be completed.

Al Badie Group to foray into Indian realty space

Abu Dhabi based estate developer Al Badie Group has announced that it is interested to enter into a JV partnership with local developers to foray into the Indian realty space.

Mr Khaled Mohammed Al Badie VP of ABG said that “India is an important market for us. We are looking at the market very closely. We will prefer to go for a JV partnership with a local player, which has enough expertise, to enter into the market.” He added that it is already in talks with UAE based banks having Indian operations, to help it find prospective partners to enter the Indian realty market, which is estimated to be worth USD 50 billion by 2010.

He further added that “We would like to put up residential and commercial projects as well as hotels in India. It is too premature to talk about locations now.”

Bahrain to double its crude production by mid 2008

Arab News reported that Bahrain's oil output will be doubled to reach 70,000 barrels per day after international companies offered bids for the development of Bahrain field.

Dr Abdulhussain Mirza oil & gas affairs minister of Bahrain said that the companies winning tenders would start work by the end of March 2008 and results might be known by mid 2008. Referring to offshore oil explorations, he said that a Thai company would drill its first oil well in mid 2008 while a US company would start drilling its first well in the beginning of 2009.

Dr Mirza also said that the agreements signed to develop Bahrain field stipulated that the companies will bring oil production technology, train and employ Bahrainis and give priority to Bahraini companies to execute the projects while allotting contracts.

Qatalum inks long term raw materials supply agreements

Mr Abdullah H Salatt chairman of the board of Qatalum said that it has signed agreements for the provision of the main raw materials for the world scale primary aluminium complex being built in Mesaieed.

He said that "Qatalum has already signed long term supply agreements for the provision of 1.1 million tonnes per year of alumina, 220,000 tonnes of calcined coke and 55,000 tonnes of liquid pitch, the main raw materials in the production process."

The fully integrated facility, includes a dedicated power plant with a nameplate capacity of 1,250 MW, a carbon plant capable of producing 370,000 tonnes of baked anodes per year and a cast house that will allow for the production of premium quality extrusion ingots and foundry alloys, in addition to a new port for the import of raw materials and export of products.

Iran to derive 1 billion cubic feet of gas from Kish deposit daily

Tehran Times quoted Mr Mehdi Bazargan MD of Petroleum Engineering and Development Company as saying that the development plan of Kish field in southern Iran will start soon with the aim of producing 1 billion cubic feet of gas per day. He added that the cabinet will approve a plan on allocation of a proper land for the construction of a refinery that transfers the field’s gas.

Mr Bazargan said that the refinery contract was signed with a domestic company. The contractor is preparing the master development plan. He added that Kish field’s gas will be exported to Oman and an initial contract urges Iran to export 5 billion cubic feet of gas to Oman a day.

According to the contract, Oman is obliged to make investments for the building of platforms and Iran is to offer its timetable for gas exports

Petronet to receive spot LNG cargo from Qatar

Doha Times reported that Petronet LNG Limited’s liquefied natural gas import terminal in India will receive a cargo of the fuel from Qatar this month. The 145,000 cubic meters Ejnan will arrive at the terminal in Dahej on the west coast of India. The shipment is in addition to 2 cargoes Petronet received this month from Qatar under multi year contracts.

Disha, a 136,000 cubic meters capacity tanker, arrived at Dahej on November 13th 2007 and Raahi, a similar sized vessel, reached the port 4 days later.

Petronet LNG has a term contract to buy 7.5 million tonnes a year of LNG for 25 years from RasGas. In addition, it has a 2 year contract to buy as much 1.25 million tonnes from Qatar. It owns the 6.5 million tonne a year Dahej terminal, while the 2.5 million tonne a year facility in Hazira is a venture between Royal Dutch Shell and Total.

ArcelorMittal takes control of China Oriental – Report

Shanghai Securities News reported that ArcelorMittal has procured 1.32 billion shares more in China Oriental Group Co Ltd following the move of paying USD 647 million for a 28% stake earlier this November, marking the first foreign company's taking control of a Chinese steel mill.

Revealed by Hong Kong Exchange, before November 9th 2007, ArcelorMittal held 820 million shares in China Oriental Group Co Ltd which has increased to 2.14 billion shares now, pushing its stake percentage from 28.02% to 73.13%.

China Oriental’s main asset is a mid sized steel mill in the north of the country that produces 4 million tonnes a year. It is unique among Chinese steelmakers for being both privately owned and listed outside the mainland.

Mr Yang Baofeng with Orient Securities said “Foreign company's controlling position could bring impact on China's steel industry. While considering China's steel capacity has crossed 500 million tonnes, out of which China Oriental Group just takes up a snippet. As the nation's restrictive policies are set not to allow further random expansion, the impact should be limited.”

ArcelorMittal's acquisitions in China before this move include
1. July 2005 - 37% stake in Hunan Valin Steel Tube and Wire for over CNY 2.6 billion
2. February 2006 - Draft purchase of 354 million shares in Shandong Laigang for CNY 2.086 billion.
3. November 2007 - 28% stake in China Oriental Group Co. Ltd for USD 647 million.

The transaction goes against the spirit of Chinese government policy, which has so far not allowed foreign control of any Chinese steelmaker on the grounds that steel is a strategically important sector.

(Sourced from MySteel.net)

Canada levies new duties on casing pipes from China

On November 9th 2007, the Canada Border Services Agency made preliminary determinations of dumping and subsidizing pursuant to subsection 38(1) of the Special Import Measures Act with respect of seamless carbon or alloy steel oil and gas well casing, whether plain end, beveled, threaded or threaded and coupled, heat treated or non heat treated, meeting American Petroleum Institute specification 5CT, with an outside diameter not exceeding 11.75 inches (298.5mm), in all grades, including proprietary grades, originating in or exported from China.

Estimated margins of dumping & subsidy and provisional AD & CVD rates are as under.

As percentage of the export price

Provisional duties will now be payable on the subject goods that are released from customs on or after November 9th 2007. Final rulings are expected to be made next year.


The goods in question are commonly classified under the following Harmonized System classification numbers:

According to Canadian statistics China exported some 68,700 tonnes of certain products, valued at about USD 100 million last year.

Canada was the first country to launch countervailing investigation into products made in China. It has, so far, initiated five anti dumping and countervailing investigations on Chinese goods since 2004. The Chinese Commerce Ministry said when the case was opened that "Such frequent countervailing investigations of Chinese products by the Canadian government is conveying the wrong message to its industry and other World Trade Organization members."

Magang produced more than 1.0 million tonnes of steel during January to September 2007.

It is reported that during the first nine months of 2007, Magang produced 1,043,800 tons of steel and 1,004,800 tons of finished steel, both exceeding million tons.

In May 2006, Magang Company was established, after the assets of former Hefei Iron and Steel were reformed. And within three months after the reform, the company blacked the business report.

Zhongyue POSCO Qinhuangdao Tinplate JV commissioned

According to China Industry Daily News, Zhongyue POSCO Qinhuangdao Tinplate, with tinplate production capacity of 250,000 tonnes per year recently began operations at Qinhuangdao in Hebei province of China.

The new operation is a 66:34 JV between Zhongshan Zhongyue Tinplate and POSCO and is based around the transfer of an existing tinning line from POSCO’s Pohang works in Korea. Sales from the new plant are expected to be split 150,000 tonnes per year for China and 100,000 tonnes per year for export to South East Asia.

Zhongyue is owned by the Hong Kong listed Guangnan group and already operates China’s second largest tinplate works in Zhongshan, Guangdong.

Xiangtang inks SBQ plate supply pact with Hyundai Heavy Industries

It is reported that Xiangtan Steel has signed cooperation agreement with South Korea's Hyundai Heavy Industries and will provide long term and steady supply of shipbuilding plate to the shipbuilder.

The shipbuilder plans to purchase 580,000 tonnes to 730,000 tonnes of shipbuilding plate from China this year up notably over the 450,000 tonnes in 2006.

Hyundai Heavy Industries is a major subsidiary of Hyundai Group with the world's biggest shipbuilding department and engine department.

Chinese steel price to grow by 35% in 2008 - Analysts

It is reported that China's top steelmaker Baosteel, which announced increase in prices for Q1 of 2008 is likely to steer China's steel price trend next year.

Mr Tang Xiaobo analyst for UBS steel noted "The price change is reasonable, given such drivers as rising raw materials like iron ore, and the marine transportation cost.

Mr Tang who forecast the steel prices to grow 35% next year said that "We hold neutral toward China's steel industry in next 12 months." As both lucrative factors and hidden risks will coexist: stepping up M&A and moderate sales price rise on one hand, and rising raw materials cost, slowing export and incremental steel capacity on the other.

He said that the demand is to go down as the world economy growth rate could be slower next year and the steel price hike will fall short for offsetting ore price rise. As a result, the steel industry will keep neutral globally, with bullish outlook for Russia, Latin America and the US.

Mr Tang said next year will be a year of M&A with a host of acquisition case to emerge, China's steel industry will take on six giants by 2010: Baosteel Group 80 million tonnes, Anben Group 40 million tonnes, WSICO 44 million tonnes, Shougang 30 million tonnes, New Tanggang 30 million tonnes and Shandong Steel Group 30 million tonnes.

(Sourced from MySteel.net)

Hangzhou Steel and FMG inks long term iron ore supply pact

It is reported that Hangzhou Steel has signed a ten year iron ore supply contract with Australia's Fortescue Metals Group Ltd on November 16th 2007 when top officials from the steelmaker visited Australia.

FMG is a newly founded iron ore company in west Australia with proven iron ore reserve of 3.5 billion tonnes. The first stage is coming to an end with production start up scheduled in next May. Annual output of the first stage is expected to hit 55 million tonnes and total output will reach 200 million tonnes by 2014.

(Sourced from MySteel.net)

Baosteel Q1 2008 prices for various products

Baosteel prices for Q1 2008 production

Wide and Thick Steel Plate
Structural SS400
20.1mm to =30mm x 2000mm to 3199mm x 12000mm

In CNY per tonne

Wide and Thick Steel Plate
Shipbuilding Plate A
16mm to 20mm x 2000mm to 2500mm x 12000mm

In CNY per tonne

HRC
SPHC
3mm x 1250mm

In CNY per tonne

HRPO
SPHC
3mm x 1250mm

In CNY per tonne

CRC
SPCC
1.0mm x 1250mm

In CNY per tonne

HDG
DC51D+Z
1.0mm x 1250mm

In CNY per tonne

EG
SECC
1.0mm x 1250mm

In CNY per tonne

Fingerprint Proof EG
SECCN2
1.0mm x 1250mm

In CNY per tonne

CR Full Hard
CDCM-SPCC
0.5mm x 1000mm

In CNY per tonne

HDG
DC51D+Z
0.5mm x 1000mm

In CNY per tonne

Galvalume
DC51D+AZ
0.5mm x 1000mm

In CNY per tonne

Color-Coated Steel
TDC51D
0.5mm x 1000mm

In CNY per tonne

Prepainted Galvalume
TDC51D+AZ
0.5mm x 1000mm

In CNY per tonne

CRC
SPCC
0.5mm x 1000mm

In CNY per tonne

Silicon Steel
B50A1000
0.5mm x 1000mm

In CNY per tonne

Tin Plate
MR
0.23mm x 1000mm

In CNY per tonne

Coke prices to rise due to the higher price of coal

According to the inspection of price inspecting center of National Development & Reform Commission the price of coal at Qinhuangdao Port in October 2007 was CNY 419 per tonnes up by 2.07% than in September 2007. It is expected that the rise of coal price since this May 2007 would boost the concluding price of large-volume contract in next year.

According to latest statistics from Ministry of Commerce of China, the ex-mine price of high quality coal in Datong, province Shanxi in the middle of October was CNY 295 per tonnes up by CNY 15 per tonnes than in September 2007, while the price at Shanghai Port and Ningbo Port was CNY 580 per tonnes to CNY 590 per tonnes, up by around CNY 20 per tonnes in MoM. The price in Guangzhou was CNY 610 per tonnes to CNY 620 per tonnes.

Ministry of Commerce of China notes that Chinese coal industry has been accelerating the merger since this year. Coal production has been further concentrated and the output has been increasing steadily. However, the growth rate has slowed down and the increment is only 6% to10%. Due to the limit in capacity, it is predicted that the supply of coal would keep the trend of rising slightly in future.

Chinese coking sector is now under great pressures from higher coal price. Due to the strong demand in downward industries and the effective control of supply increment, coking enterprises are able to raise prices and to pass higher cost to downward consumers. Members of Coking Association in province Shanxi raised coke price for the fourth time by CNY 80 per tonnes in this October 2007. Coke price has been cumulatively picked up by CNY 280 per tonnes 25% than in early this year.

Koppers Holdings sets up tar distillation JV in China

Pittsburgh Business Times reported that Koppers Holdings Inc has established a corporate entity for a JV with Kailuan Clean Coal Co Ltd in China.

The new company, Tangshan Koppers Kailuan Carbon Chemical Co Ltd, will operate a tar distillation facility being constructed in the Hebei province near the Jingtang port. The plant will be capable of distilling 300,000 tonnes of tar into various products including carbon pitch, carbon black oils and naphthalene, products used in the making of tires, rubber and ink. The plant is expected to be operational by next year.

Downtown Pittsburgh based Koppers makes carbon compounds and treated wood products for the rail, lumber and other industries.

Steel production hampered by power cut in North China

It is reported that Tangshan's Jiangjiaying substation broke down again, triggering power limit in many regions. The sudden power cut lasted one or two hours. Currently mainstream steelmakers all restrict output. This time the power limit is said to continue for over ten days.

The accident greatly influenced some steelmakers relying on power supply via Jiangjiaying substation, covering the whole Tangshan. Qian'an's Songting, Fengnan's Ruifeng, Qianxi's Jinxi, Zunhua's Ganglu and so on are seriously impacted and have not completely resumed productions so far.

Billet producers receive little affects since they gain part of power supply from Tangshan. Steelmakers now start productions after the impact yet outputs remain on a low track due to power limit.

(Sourced from MySteel.net)

Underground coal seam fire put out after 50 years in NW China

Xinhua reported that underground fire that has consumed more than 12.43 million tonnes of coal in northwest China has been extinguished after more than 50 years.

The Coalfield Fire Fighting Project Office of Xinjiang Uygur Autonomous Region announced the fire in the Terak field was finally out, saving an estimated 651 million tonnes of coal from burning. It took more than three years to fight the fire at a cost of more than CNY 89 million.

Mr Cai Zhongyong deputy head of the office said officials would closely monitor the coal seam for several years and submit a final report in 2009 to regional and national authorities. He said the fire covering 923,500 square meters was fueled by coal more than 100 meters underground. It released more than 70,000 tonnes of toxic gas, including sulfur dioxide and carbon monoxide each year since it started in the early 1950s.

Mr Miao Pu, head of the fire fighting team said "First, we drilled into the burning coal bed and then poured water and slurry into it to lower the temperature. He said after the temperature dropped, we covered the surface to starve the fire of oxygen."

The local Coalfield Fire Fighting Project Office was established in 1958 to extinguish long term coalfield fires plaguing the region.

China Precision Steel posts robust revenues for FY08 Q1

Precision steel processing company China Precision Steel recently reported surging revenues, but unchanged net income for its Q1 of 2008.

For the three months ended September 30th 2007, the Hong Kong based firm recorded revenue of USD 25.3 million up by 141% from USD 10.5 million in the first quarter of fiscal 2007. Revenue climbed on account of increased sales of high carbon and low carbon cold rolled steel from the company's increased capacity and the continued development of its brand in China. Its net income was USD 2.9 million as compared with net income of USD 2.9 million in the Q3 of 2006.

The firm also updated its outlook, stating that its new cold-rolled mill with 150,000 metric tons of design capacity is expected to reach 50% utilization by the end of calendar year 2007. China Precision also said it has plans to commence the construction of a third mill with 150,000 metric tons of capacity in the first quarter of 2008.

Additionally, China Precision said it will begin construction on a third mill in the beginning of 2008 using USD 44 million in funds raised through a registered direct financing.

The company noted that it has also spearheaded several new R&D projects, including cold rolled steel used in drawer guidance rails and in double layer welded pipes for various.

Some Chinese steel mills to suffer from high costs

It is known that steel makers' profits are squeezed owing to sharply rising prices for raw materials, such as iron ore. Some steel makers are even on the edge of losses.

Some steel makers in North China have recently reached a consensus that raw material purchasing should be reasonable. Stock volume should be kept flat. Through such measures, they hope to jointly restrain the continuously upward trend of raw material prices. At the same time, they will strengthen information exchange between each other.

An analyst from Citic Securities Co Ltd said that steel product price maintained upswings under the combined influence of costs and demand. He forecasted that iron ore benchmark price would rise by another 15% to 20% for fiscal 2008. Meanwhile, coke price will also climb up.

(Sourced from MySteel.net)

Province wise coke in January to October 2007

It is reported that China's Coke output in January to October output was 28.543 million tonnes up by 12.3%YoY.

The province wise Coke production is as under