SAIL to set up pellet plants in Orissa, Jharkhand and Chattisgarh

Dr Akhilesh Das union minister of state for steel informed Indian parliament that Steel Authority of India Limited is planning to set up 3 new Greenfield pellet plants.

The upcoming SAIL pellet plants are
1) 0.9 million tonnes per year annum plant at Dalli in Chattisgarh
2) 1 million tonnes per annum plant at Gua mines in Jharkhand
3) 2 million tonnes per annum plant at Taldih mines in Orissa

There will no investment by SAIL for setting up of the first 2 plants. SAIL will provide iron ore fines to the parties who will set up the pellet plants and the parties will supply pellets to SAIL on conversion cost basis. While, the cost of setting up the Orissa pellet plant would be known after finalization of the detailed project report.

India to become net importer of steel – Steel secretary

It is reported that for the first time ever, India is all set to become a net importer of steel in the current fiscal. Mr RS Pandey steel secretary said that India had been a net exporter of steel in the last 4 years.

During April to October 2007 period, India imported 3.6 million tonnes of steel up by 79% YoY as against 2 million tonnes imported during April to October 2006 period. Out of the total import, around 60% of the steel came from China, Malaysia and Thailand.

While steel exports were 4 million tonnes 4 years ago in the April to October 2007 period, India exported only 2.9 million tonnes of steel.

Indian spot iron ore imports report thin trade as price slides

It is reported that imported iron ore price, which had gained USD 40 per tonne to USD 45 per tonne in the spot market over the past two months and resulted in CNY 530 per tonne increased costs of steel, has started a slide.

The increased costs of steel makers started to affect the business volumes. In most of the cases, steel mills failed to pass on the surging cost to down stream buyers and some producers were forced to slash production in November 2007. Therefore, the demand for imported iron ore dwindles significantly as some mills are staying away from the market.

Currently, Fe 63.5% and 62% Indian ore fine already fell back to USD 185 per tonne and USD 178 per tonne down by 7% to 8% from two weeks before. However, most Chinese buyers are still waiting for a clearer market director at the moment. Meanwhile, the iron ore freight cost from East Indian coast to China has already lost over 9% to USD 43 per tonne to USD 44 per tonnes after peaking at USD 48 per tonne in late October 2007.

The spot price at Chinese ports has surpassed the export offer from Indian miners by as much as USD 10 per tonne in the peak time in October 2007. Most traders become increasingly cautious in placing new orders in light of the accumulating risk. Indian market has seen slipping order from Chinese buyers since late October 2007 and prompts Indian miners to cut the offer price.

The first round of benchmark ore talks is set to kick off in late November 2007. Undoubtedly, contract ore price is poised to roar up for fiscal 2008. In this case, Australian and Brazilian iron ore flow to the spot market is set to decline by the year end. Market analysts believe that spot Indian ore price is likely to rebound in near future as most Chinese mills would return to the market replenishing their ore stock to maintain production.

(Sourced from MySteel.net)

Essar reassures Trinidad & Tobago over its steel project

Local media cited Mr Prem Singh head of HR & administration at Essar Steel as saying that Trinidad and Tobago stands to benefit from the USD 2 billion Essar Steel's project under construction at Claxton Bay in south Trinidad.

Despite calls from politicians and community groups for Essar to reveal its contract with the government, Mr Singh said that the commercial contract is strictly confidential. He added that “You must understand that this is a commercial contract. It is a confidential matter and I am not in a position to give details of the contract.”

Mr Singh pointed out that Essar is a global producer of steel with operations in India, Canada, the US, Middle East, Asia and the people of Claxton Bay will get economy boost from the Essar project in the area. He added that Essar would continue its social, cultural and educational projects.

Meanwhile, Mr Theodore Stone public relations officer of Pranz Gardens Committee said that people in the area fully endorse Essar's presence. He added that “They have already helped a lot of people and I want to say to Essar that they must ignore protestors and move ahead.”

It is noted that several communities in the area have been protesting the setting up of the proposed steel plant on environmental, health and safety grounds.

ArcelorMittal to set up a R&D centre in India

It is reported that ArcelorMittal is going to set up a research & development centre in India even before it kicks off land acquisitions for its projects in Jharkhand and Orissa and is planning to form alliances with reputed Indian universities for the research venture that may come up next year.

Mr LN Mittal president & CEO of ArcelorMittal said that “We will definitely invest in R&D in India.” Noting that the IIT Bombay had a strong metallurgical engineering department, he added that ArcelorMittal planned an alliance with such kinds of universities.

Mr Greg Ludkovsky VP R&D of ArcelorMittal said that the proposal for the research project would be placed before the group management board of ArcelorMittal next month for approval. He added that “We are looking at mine and mineralogy as the focus area for this setup.”

Mr Ludkovsky said that “R&D centre would begin with a modest number of people but expand when the 2 large plants come up in Orissa and Jharkhand. India has large deposits of coal and iron ore. It is one of the largest exporters of low grade iron ore fines used for steel making in China. It has also deposits of ferroalloys such as manganese and chrome. These deposits have prompted Mittal to focus on mines and mineralogy. We will cover the entire spectrum of input material like coke, coal, iron ore and ferroalloys in the centre.”

Anti POSCO activists abduct wrong ones and than release them

IANS reported that anti POSCO activists in Orissa, who had detained seven employees of Dharitri Dreging Co, which is working in the region on behalf of Indian Oil Corporation, at Dhinkia village in Jagatsinghpur district, released then Friday morning.

As per report, when Dharitri employees were doing some survey work near Jatadhari River Thursday afternoon, hundreds of anti POSCO activists rushed to the spot and detained them at Dhinkia village. The report cited a police official as saying that "The anti POSCO activists released them Friday after confining them for over 12 hours.”

Mr Abhaya Sahu president of Posco Pratirodh Sangram Samiti told IANS that "Some officials are coming to the proposed POSCO site under the name of other companies. That is why we had detained these people because we suspected them to be POSCO officials. We released them after confirming they do not belong to POSCO.”

This incident puts a big question mark on POSCO’s recent announcements that it would begin construction in March 2008.

Railways, SAIL and CIL to set up working groups to accelerate freight traffic

It is reported that, in a high profile meeting between Mr KC Jena chairman of railway board with Mr SK Roongta chairman of Steel Authority of Indian Limited and Mr PS Bhattacharyya chairman of Coal India Limited, a decision has been taken to set up working groups to accelerate the growth of railway freight traffic in core sectors like steel and coal. The meeting was held to discuss future prospects of growth of railway freight traffic in both coal and steel sectors.

The 2 working groups separately for each sector comprising of officers from railway board, CIL and SAIL, will prepare long term vision scenario for both coal and steel sectors. This is expected to provide a platform for taking proper investment decisions and equipping railways to meet the growing demands in both sectors.

The meeting deliberated on anticipated growth in the 11th Five Year Plan and beyond. During the meeting various important issues like reducing detentions to rolling stock and loading & loading activities, developing new areas for movement of raw materials etc were also discussed.

Coal blocks allocation a good beginning for ArcelorMittal

ArcelorMittal has termed India government's allocation of coal blocks for its multi crore Greenfield steel projects in Jharkhand and Orissa as a good beginning and a positive sign.

Mr MP Singh VP of ArcelorMittal said that "This is a good beginning towards the realization of our Jharkhand and Orissa projects, which will bring considerable economic benefits to India and the states of Jharkhand and Orissa in particular. This announcement is a positive sign that the government of India and the state governments of Jharkhand and Orissa are supportive of ArcelorMittal and our commitment to these projects."

It is reported that ArcelorMittal is has got coal block at Sereghara in Jharkhand and Rampia and dip side Rampia block in Orissa for the first phase of its Indian Greenfield projects in these 2 states.

ArcelorMittal, in a release, said that "Each plant will also have captive power units for which the coal blocks allocations will be utilized and the twin projects would be developed in 2 phases with 6 million tonnes capacity each.”

India’s high grade iron ore exports in H1 down by 23% YoY

Mr RS Pandey union steel secretary said that India’s export of high grade iron ore has dropped by 23% the April to September 2007 period and the overall export of iron ore consisting of both high grade and low quality has dipped by 3%.

Mr Pandey said that “During April to September 2007 period, exports of high grade ore have dropped by 23% YoY to 14.8 million tonnes as against 19.3 million tonnes. Similarly, total iron ore exports, including both lumps and fines, have also fallen by over 3% YoY April to September 2006 period to 37 million tonnes as against 38.2 million tonnes.”

He added that “It seems that conservation is taking place. Imposition of a cess of INR 300 per tonne and congestion at major ports also seem to have played a part in leading to drop in exports.”

Adivasi Committee says no to SEZs in Jharkhand

Ranchi Express reported that the All India Adivasi Coordination Committee, in a meeting at Port Blair on November 17th 2007, has taken a resolution to stop further destruction of tribal groups in Jharkhand in the name of special economic zones.

The meeting of the tribal socio political organization has immense significance, as tribal bodies have wide influence on the people they represent. Tribal leaders stressed that tribals had inevitably been duped whenever their land had been taken away for projects.

Mr Salkhan Murmu secretary general of All India Adivasi Coordination Committee presided over the meeting.

NTPC forms Bhartiya Rail Bijlee Company Limited

Further to earlier announcement dated November 6th 2007, National Thermal Power Corporation Limited has announced that it has formed a subsidiary company under the name of ‘Bhartiya Rail Bijlee Company Limited’ on November 22nd 2007 for setting up a captive power plant of 1000 MW at Nabinagar in Bihar. The equity share ratio in the new subsidiary company will be 74:26 between NTPC and union ministry of railways.

Sandvik to set up its 6th unit in India

It is reported that Swedish mining & construction equipment major Sandvik AB is in the process of increasing its presence in the Indian market by expanding capacities in all the 5 manufacturing facilities and in addition to this, it intends to increase the sourcing of components from India for its global requirements.

Mr Thomas Schulz president of Sandvik Mining & Construction said that it is planning to invest around INR 250 crore to expand capacities over the next 2 years in India, including setting up of its 6th unit in India.

He added that it is in the process of commissioning a new plant for recycling of cemented carbide at Chiplun in Maharashtra and is also expanding mining tools plant in Hyderabad, heating elements plant in Hosur during the present year. Its businesses in India include materials technology, tooling and mining & construction equipment.

Mr Schulz said that “The Asia Pacific region is a supply and logistics centre for Sandvik Mining & Construction. We will continue to design and produce certain construction equipment and tools in India and export to our markets in other parts of the world.”

It is noted that Sandvik’s India subsidiary Sandvik Asia Limited has already 5 manufacturing units in Pune, Mehsana, Hosur, Hyderabad and Chiplun, besides a research & development centre in Bangalore. With the expansion, Sandvik Asia aims to increase its contribution to the company’s global sales significantly over the next few years. In 2006, turnover from its Indian operations stood at INR 1,153 crore or 2.64% of its global turnover.

MSPL plans wind energy business expansion

BS reported that iron ore exporter Mineral Sales Private Limited is planning to expand its wind energy business with an investment of INR 1,100 crore over the next 3 years. It intends to increase the installed capacity to 400 MW by 2010 by commissioning more windmills in the 3 states. It has already invested INR 924 crore on its wind energy business so far.

Mr Shrenik Kumar Baldota executive director of MSPL said that “By the end of the present fiscal, we will add 40 MW. Next fiscal, the installed capacity will be 320 MW. We have already short listed the sites to install the windmills. We will also install windmills at our mining locations in Karnataka. We intend to raise INR 1,100 crore to fund the expansion of the wind energy business through equity cum debt in the ratio of 1:3. We are already in talks with various banks. The funding will be done in phases.”

MSPL has also registered with the United Nations Framework Convention on Climate Change, one of the largest clean development mechanism projects in the world. It has already registered a power generation of 125 MW in Karnataka with UNFCCC.

MSPL Ltd, a flagship company of the Baldota Group, ventured into wind energy with the installation of a 1.5 MW project near Satara in Maharastra in 2001. At present, it produces 191.6 MW power from its windmills in Karnataka, Maharashtra, Gujarat.

JSPL board approves sub division of equity shares

It is reported that the board of directors of Jindal Steel & Power, through resolution passed by a circulation on November 21st 2007, has decided to sub divide each equity share of INR 5 into 5 equity shares of INR 1 each.

Jindal Steel & Power has business interests in steel production, power generation, mining iron ore, coal and diamond exploration or mining.

Lanco Infratech receives 5 LoI worth INR 67.24 crore

Lanco Infratech Limited announced that it has received 5 letters of acceptance worth INR 67.24 crores for supply and erection of 33-11 KV substations and 33-11 KV lines in the 5 districts of Mahabubnagar, Kurnool, Nalgonda, Medak and Ananthapur in Andhra Pradesh from Central Power Distribution Company of AP Limited.

NALCO to invest INR 20,000 crore for 2 aluminum plants

ET reported that National Aluminum Corporation Limited will invest around INR 20,000 crore to set up 2 new aluminum projects in Andhra Pradesh and an Orissa and will go for a follow on public offering, including a rights issue to part fund investments. It is also set to raise around INR 6,000 crore through external commercial borrowings to finance equipment imports.

Mr BL Bagra director finance of NALCO said that “We are looking at a mix of options, including equity, debt and internal resources to fund the new Greenfield projects, if the 2 state governments clear them. The timing of the follow on public offering will hinge on these approvals.”

Mr Bagra said that “NALCO has signed a MoU with Andhra Pradesh to access bauxite deposits, estimated at around 100 million tonnes. We have asked the Mineral Exploration Corporation to give the exact estimate after drilling. A formal proposal for a mining lease will be submitted to the state government next week.”

If the above 2 new Greenfield projects are commissioned, NALCO’s capacity will lift by another 500,000 tonnes, taking the total capacity to over 900,000 tonnes. NALCO also wants to build an integrated complex in Orissa, covering bauxite mining, alumina refinery, power plant and an alumina smelter. But the plan hinges on the award of coal blocks and bauxite.

Union government holds 87.15% stake in NALCO, with the balance being held by FIIs, mutual funds, local insurance companies and individual investors.

Simplex bags USD 150 million contract for Vallarpadam terminal

It is reported that DP World Cochin or India Gateway Terminal Private Limited has awarded the civil construction contract worth USD 150 million to Simplex Infrastructure for the first phase of the international container transshipment terminal at Vallarpadam in Ernakulam district of Kerala.

Construction work on the project is expected to begin by December 2007. Phase I involves the building of 600 meters of quay, an on dock railhead serviced by rail mounted gantry cranes, 30 hectare of yard and the acquisition of 6 super Super Post Panamax cranes designed to handle some of the largest vessels afloat today. Work on the first phase of the terminal will be completed by March 2009 and will have the capacity to handle 1 million TEU.

BHPB bid for Rio - Rio to unveil own prospects on Monday

Reuters reported that BHP Billiton’s target Rio Tinto is likely to focus on trumpeting its prospects as an independent firm rather than revealing defense tactics as it gives its first detailed response on Monday to an all share takeover proposal from mining rival BHP Billiton. Mr Tom Albanese CEO of Rio Tinto will host the investor briefing in London on Monday, where he will put his reasons for turning down BHP's offer.

Analysts said that “Rio, which has said BHP's three for one share proposal vastly undervalues the firm, will likely showcase the strength of its own assets during Monday's presentation.”

An analyst was quoted as saying that “I think they are going to focus on their long term prospects, what the company is capable of doing on its own without BHP and probably say a lot of the synergies can be realized without merging.”

BHP has argued a combination of the two companies will lead to USD 3.7 billion in annual synergies after seven years through cost cutting and speeding up development of mines.

A major overlapping area is in iron ore, where both firms have operations in Australia's Pilbara region. BHP said a major source of synergies would be in iron ore, but Rio Tinto is likely to argue that its operations have more potential.

Rio is also likely to outline growth prospects for Canada's Alcan, which Rio recently bought for USD 38 billion to make it the world's largest producer of aluminum.

ThyssenKrupp opens a sandwich panel plant in Hungary

It is reported that ThyssenKrupp Építöelemek, a company of ThyssenKrupp Steel AG’s Construction group, opened a plant for steel sandwich elements in Felsölajos around 60 kilometers from Budapest in Hungary. The investment volume for the new production site amounted to EUR 8 million.

The new plant will produce around 1.2 million square meters of steel sandwich elements a year, the plant will supply customers not only in Hungary but also in the Czech Republic, Slovakia, Ukraine, Romania, Bulgaria, Serbia and Croatia. With this investment, ThyssenKrupp Steel aims to meet the rapidly growing demand for steel sandwich elements in the construction industry in Central and Eastern Europe.

Dr. Jost A Massenberg executive board member of ThyssenKrupp Steel AG said that “We forecast annual growth rates of ten percent for sandwich products up to the year 2012 and aim to achieve a 15% market share.”

ThyssenKrupp Építöelemek will process coated flat rolled steel supplied by ThyssenKrupp Steel’s German operations. Its product range comprises ems cold room panels, Hoesch Thermowand thermal wall elements, Hoesch Thermodach thermal roof elements and Hoesch Isowand wall panels. The company has already been operating successfully as a sales company for construction elements in Hungary for twelve years an plc to acquire Falls Mountain Coal Corp.

Steel sandwich elements consist of two steel face sheets firmly bonded with a rigid polyurethane foam core. The products are used for industrial and commercial buildings, office and administration buildings, parking garages, public buildings, gymnasiums, power plants and cold storage facilities. The construction elements offer outstanding thermal insulation and low weight. Available in various profiles and with a wide range of colored and functional coatings, the products meet the most demanding architectural requirements.

Minerita plans a 1.2 million tonne steel plant at Minas Gerais

BNamericas reported that Brazilian iron ore miner Minerita is willing to pump some BRR 150 million to BRR 160 million into a potential steel complex in Minas Gerais state of Brazil.

Mr Marco Antônio Antunes logistics director of Minerita told BNamericas that Minerita would offer long term iron ore supply and logistics to the complex and expected total investments requirement of around BRR 1 billion. He added that areas where the project could be built include the municipalities of Brumadinho, São Joaquim de Bicas, Igarapé and Itaúna.

Mr Antunes said that they recently met with Minas Gerais state authorities to present a conceptual study for the complex and authorities are now in charge of finding companies in Brazil which would be interested in invested in the venture.

He added that "In the study presented to authorities, we outlined a 1.2 million tonnes per year steel shop and six blast furnaces and the project would also entail a forestation program to produce charcoal needed in the pig iron production process. But so far, all we have are promises from the government."

The project would take three years to develop.

Vallourec to maintain market leadership without merger

It is reported that Vallourec is not interested in pursuing any mergers, despite recurrent market speculation that it is a target.

Mr Pierre Verluca chairman & CEO of Vallourec in an interview with French weekly magazine Le Revenu said that “The fact that Vallourec's capital is very dispersed can explain these rumors. But we do not need to tie up with someone else to maintain our leadership position in the seamless steel tube market.”

Mr Verluca also said he expects global demand for steel tubes to remain strong in 2008 thanks to energy investments in India and China.

Sideruna to halt pig iron production due to high costs

BNamericas citing Mr Reinaldo Torres president of Brazilian pig iron producer Sideruna reported that it has decided to halt production at its Mato Grosso do Sul state plant due to high costs.

Mr Torres said that "The situation is very bad. Our costs are higher than our current sales revenue, and we will stop production on November 30th 2007. We will have to dismiss all of the employees."

Mr Torres added that "The market abroad for pig iron is excellent, it has never been so positive. Russia is selling pig iron to Asian clients at some USD 410 per tonne to USD 420 per tonne on FOB basis.”

Sideruna kicked off operations at the 10,000 tonnes per month plant in Campo Grande city in June. Sideruna has a deal to sell 10,000 tonnes per month through 2011 to São Paulo state-based steelmaker Cosipa, which is already aware of the halt.

Its plans included an expansion to 40,000 tonnes per month once the company secured one or more long-term sales contracts, but Sideruna decided to call off negotiations due to unfavorable logistics conditions.

Sideruna decided earlier this year to shut down its operations in the southeastern state of Minas Gerais and to solely focus on pig iron output from its Mato Grosso do Sul plant.

BHPB bid for Rio - BHP denies plans to sell petroleum business

Thomson Financial reported that BHP Billiton has denied it has any plans to sell its petroleum division if succeeds in getting Rio Tinto to agree to its merger proposal.

Mr Michael Yeager CEO of BHP Petroleum in a letter to employees said that “The board of directors considers BHP Billiton Petroleum to be a key part of the BHP Billiton group. They greatly value our current performance and want more of it in the future.”

Mr Yeager said that “As a member of the group management committee, I have been actively involved in the development of the proposal and the sale has not been contemplated as part of this proposal.” He told employees that the division is busier now than ever before and the role you play is critical to the company as a whole, not just to BHP Billiton Petroleum.

Mr Yeager was responding to media reports that the division might be sold as part of the Rio Tinto transaction.

Siemens starts up MEROS at Linz sintering plant of voestalpine

Siemen announced that the new MEROS, maximized emission reduction of sintering, off gas cleaning plant was successfully started up at the sinter plant of the Austrian steel producer voestalpine Stahl GmbH in Linz.

Siemens said that the plant start up proceeded smoothly and the foreseen gas treatment capacity was rapidly reached, the foreseen emission reduction levels were quickly and fully met and an overall plant availability of over 99% was achieved.

In order to satisfy the municipal environmental regulations required for the expansion of its sinter production capacity to 2.8 millions tonnes per year, voestalpine Stahl GmbH commissioned Siemens Metals Technologies to replace the existing wet type de dusting system with the dry type Meros Process. Up to 1,000,000 m³ of sinter off gas can now be treated per hour. In comparison with the previous wet type system, with the Meros Process emissions of dust, heavy metals, organic compounds and SO2 are reduced by more than 90%.

Mr Hannes Sigmund environmental spokesman for voestalpine Stahl said “With the installation of the new Meros plant, the major source of pollutants at the voestalpine steel works in Linz was decisively diminished.”

The new dry type Meros gas cleaning process removes pollutants such as dust particles, heavy metals, SO2 and organic compounds from the off gas stream of sinter plants far more effectively than in conventional processes. With this technology, the ever stricter environmental regulations expected to be imposed on sinter plant emissions in the future can already be met today.

CSC increase Q1 domestic steel prices by 5.4%

It is reported that Taiwan’s China Steel Corp will lift its domestic steel prices 5.4% in the first quarter of 2008 from this quarter as demand remains solid, with more rises possible next year. The increase comes after Baoshan Iron and Steel said this week it was raising major steel product prices by as much as 8% in the first quarter of 2008.

China Steel will raise prices as under
1. Steel plates by an average of TWD 2,080 per tonne
2. Bar and wire rods by TWD 1,800 per tonne
3. Hot rolled products by TWD 700 per tonne
4. Cold rolled steel by TWD 630 per tonne
5. Electrical steel by TWD 1,100 per tonne

Mr LM Chung an executive vice president of China Steel told Reuters by telephone that "Demand is still pretty strong and raw material prices and shipping costs are rising. We also had to factor in the competitiveness of our domestic clients.”

Mr TH Chen vice president of China Steel said that "If the hikes in raw material prices continue and global demand is robust, we would raise our prices in the second quarter of next year.”

Corus raises prices for reversing mill plate

Corus announced that it will raise prices for reversing mill plate by GBP 30 per tonne for all material dispatched on or after December 30th 2007. An addendum to Corus’ price list will be issued shortly.

Mr Richard White GM of sales & marketing for sections & plates of Corus said that “Notwithstanding the strong global demand for plate, the steel industry, including Corus, continues to be subject to significant cost increases and, therefore, Corus Construction and Industrial will be raising prices for reversing mill plate by GBP 30 per tonne.”

Sandvik to sell Sandvik Tobler unit to Japan Mori Seiki

Reuters reported that tool and specialty steel maker Sandvik had agreed to sell its Sandvik Tobler unit to Japan's Mori Seiki.

Sweden based Sandvik in a statement said that the unit is a part of Sandvik's key Tooling division has about 80 employees and annual sales of around SEK 85 million (USD 13.51 million). It added that "The divestment of Sandvik Tobler entails the discontinuation of an operation that is outside the business area's core operation."

Sandvik expected the deal to sell the unit, which makes tools mainly for the automotive and aerospace industry to be concluded in January next year after approval from relevant authorities.

TenarisConfab sees strong demand in midterm

BNamericas reported that Brazilian steel tube and equipment producer TenarisConfab expects to see strong demand for pipes in the midterm.

The report quoted Mr Marcelo Héctor Barreiro IR director of TenarisConfab during a meeting promoted by analyst and investor association Apimec as saying that the need for products within Brazil would be tied to the natural gas market and projects associated with distribution networks. He added that on markets abroad, demand in the midterm is also due to move upward, but the exchange rate and high steel prices lower the competitiveness of our products.

Mr Túlio Chipoletti VP of Confab said that Confab acquires steel from Minas Gerais state based Usiminas to manufacture pipes and his company is also participating in a tender to supply products for the expansion of gas pipelines in Argentina. Mr Chipoletti said that "We see good possibilities for business in Argentina and Colombia". But Chile, for instance, is not a likely place for new deals. He added that "We have lost many deals in Chile due to competition with Chinese products. High freight costs also take away our competitiveness on exports.”

Mr Roberto Vidigal president of Confab said that "High oil prices mean a good outlook for business at Confab adding new technologies and types of steel would need to be developed to explore Petrobras' recent find. He added that "We are ready to face the challenges regarding this discovery."

Confab is a subsidiary of Luxembourg based steel pipe producer Tenaris and has pipe nominal capacity of 500,000 tonne per year. Its equipment division also supplies the mining, metals and pulp sectors, among others.

Indonesia won't limit thermal coal exports

Reuters reported that Indonesia will not impose a ceiling on coal exports as domestic demand is still below production. According to data from the Indonesia’s energy ministry, Indonesia, the world's largest exporter of thermal coal is expected to produce 196 million tonnes of coal in 2007 with domestic consumption seen at 49 million tonnes.

Mr Purnomo Yusgiantoro energy minister of Indonesia told reporters that "Domestic market obligation for coal is included in contracts but we don't need it because domestic demand is small. We will produce coal based on demand and we won't set a ceiling on exports."

Indonesia expected to export 147 million tonnes in 2007.

Mr Yusgiantoro said that coal output is likely to rise nearly 11% next year as producers increase capacity, but demand for coal is also set to soar as industries switch from petroleum to coal.

Indonesia is expected to consume 75 million and 90 million tons of coal in 2009 and 2010, respectively. The expected increase in domestic coal demand is because of government plans to generate an additional 10,000 MW of electricity by 2010, some of it from coal fired plants. Industry officials said coal exports were likely to slow because of the expected increase in domestic demand.

Indonesia is expected to export 148 million tonnes of coal in 2008. Coal exports would increase by only 2 million tonnes to 150 million tons in 2009.

Yieh Phui to become biggest HDG maker in 2008

YIEH reported that Taiwan’s Yieh Phui will start its third continuously galvanizing line to produce in early of next year, with designed capacity of 300,000 tonnes annually.

Yieh Phui said that the new line can produce the size of thickness 0.2mm to 2.5mm and width 762mm to 1,550mm. In addition, the new line is mainly for thickness over 1.0mm.

Yieh Phui further added that the total capacity output at mills in Taiwan and China will reach 2.5 million tonnes and it will become the biggest hot dip galvanizing manufacturer in the world.

CVRD Inco eyeing CAD 750 million Thompson expansion

Reuters reported that CVRD Inco is considering a CAD 750 million (USD 760 million) investment that would boost production at its Thompson Manitoba nickel mining smelting and refining facilities by about 36%.

Mr Cory McPhee a spokesman of CVRD Inco said the planned expansion would extend the life of the Thompson operations by at least 5 years to at least 2027. But the CAD 750 million figures had not yet been confirmed. He added that "You could be looking at CAD 750 million. It's certainly not a confirmed figure, but it's something that would be contemplated.”

Mr McPhee said that the investment would increase production from Thompson to around 150 million pounds a year from current levels of around 110 million pounds. Mr McPhee said that "We have got impressive growth plans in the nickel business that could see us almost double our output by 2012.”

CVRD Inco said that last month it plans to spend CAD 59 billion in 2008-2012 to boost production of copper, nickel and iron ore.

Canadian nickel miner Inco was acquired last year by Brazil's Companhia Vale do Rio Doce.

US ferrous scrap prices soften

Platts reported that US domestic prices for shredded ferrous scrap have declined by about USD 10 per short ton on average. It added that near term market direction was uncertain, however, with some market sources suggesting to Platts this week that December prices could be sideways to slightly higher.

The Platts assessment for shredded scrap moved down by USD 10 per short ton to a range of USD 270 to USD 280 per short ton with a midpoint of USD 275 per short ton delivered mill in the US Midwest. Heavy melting scrap mixed No 1 and No 2 was selling on a delivered mill basis in a relatively wide range of USD 230 to USD 250 per short ton with plate and structural scrap (cut to 5 foot maximum lengths) selling at a USD 10 premium to HMS in the Midwest and East Coast regions.

One scrap processor in the Midwest said that "I think December prices will be sideways or possibly up a few dollars. We have been getting more calls lately asking for scrap and also asking if we'll have any additional scrap over and above contracted amounts."

An East Coast processor said that December market direction was anybody's guess adding that November prices have been steady since falling USD 10 to USD 15 on average in the first few days of the month. He said that "We have lowered our buy prices and are trying to maintain the same margins." He added that he had seen few indications of near term price movement.

In October, sources at one domestic mill had predicted softer prices for November but also suggested at the time that prices could begin to rise again in December or January. Mill demand may support that notion, with several having separately announced price increases on the order of USD 30 to USD 40 per short ton for sheet products recently. It added that scrap availability meanwhile may be an issue for some processors. A single location recycler in the Midwest reported having difficulty maintaining scrap flows into his yard. There also were indications recently that larger processors are preparing to fight it out with smaller players for available supply.

Feng Hsin raises rebar prices

YIEH reported that after reduced its rebar prices twice in the early November 2007, Taiwan’s Feng Hsin has increased its rebar price about NTD 200 per tones this week. But the purchasing price of steel scrap and sections are remained at the same level.

The major reason that Feng Hsin raised its rebar price is because of the increasing demand from domestic market and its section price has still remained at its all time high levels in the passed 7 weeks.

The new price for rebar is at NTD 20,200 per tones, the section price is NTD 21,300 per tones and the scrap price is NTD 11,400 per tones.

Cape Lambert survey shows resource extension at Pilbara

It is reported that Cape Lambert Iron Ore Ltd’s higher resolution helicopter magnetic survey at its iron ore project in the Pilbara region of Western Australia has identified a potential northern extension to the Cape Lambert resource.

Cape Lambert said that a 3D magnetic modeling is underway to evaluate the full potential of the extension and the drill testing of the interpreted strike extension is planned for the first quarter of 2008, once the 3D model and heritage clearances are completed.

European Nickel seeks 426,000 tonnes of nickel in Albania

European Nickel has announced the completion its first JORC Code compliant Mineral Resource Statement for its 100% owned Devolli Nickel Project in southern Albania, a resource which the company claims contains in excess of 426,000 tonnes of nickel in two main deposits: Verniku and Kapshtica West.

According to a statement released by the company, the resources are classified as being of Inferred status within the JORC code based upon geological data collected and compiled by European Nickel, which is of sufficient quality to support the resource classifications applied.

Mr Simon Purkiss MD of European Nickel said that "This is the first stage of the pre feasibility study that we are undertaking on the Devolli project. The resource is supported by good infrastructure, including a major road to the port of Thessaloniki. The ore is amenable to the heap leaching process and column tests have shown that good extraction rates can be achieved."

European Nickel has reviewed some 10,500 meters of new drill hole information, at drilling intervals of 100 meters by 100 meters and over 60,000 meters of historic Albanian Geological Survey data, at drilling intervals ranging from 200 meters by 200 meters to 100 meters by 100 meters, to arrive at this first JORC Code compliant resource on the Project.

Scana wins contract for subsea system from FMC

Norwegian industrial group Scana Industrier ASA has secured a global framework contract for components from FMC Technologies. The three year contract valued at NOK 250 million to NOK 300 million covers components for subsea production systems.

Scana Industrier based at Stavanger in Norway, operates within the steel, marine and oil & gas sectors. The group has 1,850 employees in Norway, Sweden and China, and an annual turnover of NOK 1.7 billion. Scana Industrier is listed on the Oslo Stock Exchange.

Colombian industrial output in 9 months up by 12% YoY

According to Colombia’s national statistics agency Dane, Colombia's industrial production in January to September 2007 registered 12% YoY growth, driven by the basic industries of iron, steel and metal smelting. Although no comparative figures were provided in the report.

According to the report of the 48 industrial camps analyzed 44 reflected positive behaviors. The report said that the manufacturing industry also registered 13% growth between October 2006 and September 2007 in terms of actual production and the total number of jobs related to the industrial sector jumped by 3.72% YoY in the period.

Canadian Liberty Mines switches off take partners

Metals Insider reported that Canadian nickel junior Liberty Mines is switching the bulk of its concentrates sales to Xstrata from China’s Jilin Jien Nickel Industry.

The report added that concentrates shipments to Jilin will be limited to a maximum 20 tonne per day until the expiration of the off take agreement on November 23rd 2010. The rest of the production from the Redstone concentrator will now be shipped to the Xstrata Nickel smelter at Sudbury in Ontario with immediate effect.

Mr Gary Nash president & CEO of Liberty said that “The opportunity to work with Xstrata streamlines our concentrate handling and improves the economics of our operations.”

Liberty restarted the Redstone mine last year and is now developing the nearby McWatters mine.

Siemens to modernizes Wieland Werke’s copper CR mill

The Siemens Industrial Solutions and Services Group announced that they have received an order from Wieland Werke AG of Germany, to modernize a cold rolling reversing mill in their Voehringen plant.

As part of their ongoing investment measures in their production facilities, Wieland is modernizing the four high reducing rolling mills No 4 in the Voehringen factory near Ulm. This mill started operating in 1980, when Siemens also supplied the electrical and automation equipment.

The scope of supply encompasses basic automation, including technological controls, process automation and drive control. Siemens is also responsible for installation and commissioning. Conversion is scheduled for June 2008.

Modernization of the technological controllers, the operator control system and the drive controls will bring the plant up to the latest technological standards. This will improve product quality and also increase productivity. The equipment installed will be based on the Siemens “Siroll CM” solution platform for cold rolling mills. This system is also being used in the new cold rolling mill which recently started operating at Wieland Metals Singapore Ltd. Among the main reasons why the contract was awarded to Siemens was the latter's successful cooperation with Wieland in several preceding projects.

Wieland group is one of the world's leading manufacturers of semi finished and special products made of copper and copper alloy. The company has branches and production facilities on all the world's continents and employs around 5,900 people worldwide.

Mcarthur announces pact for Lake Giles iron ore project

Macarthur Minerals Limited announced that it has entered into a heads of agreement with LPD Holdings Pty Ltd potentially worth CAD 110 million to assist in the development of the Lake Giles Magnetite iron ore and base metals project in Western Australia.

The agreement could result in LPD Holdings acquiring an 80% interest in Macarthur Minerals' wholly owned subsidiary Internickel Australia Pty Ltd which owns the 1,155 square kilometer project located in the emerging Yilgarn iron ore province.

Under the terms of the Heads of Agreement:

1. LPD Holdings has paid a CAD 1 million non refundable deposit and will have a four month due diligence period when a bulk 6 tonne sample will be taken from the project for a mineral processing trial in China by an end user company
2. Post due diligence, LPD Holdings has the option to pay CAD 9 million to acquire 30% of Internickel Australia Pty Ltd
3. 85% of the first CDN 10 million investments will be directed towards a drill out program and exploration over the iron ore targets
4. Upon delineation of a 500 million tonne in situ resource, LPD Holdings can pay CAD 100 million to acquire a further 50% of the project.
5. Macarthur Minerals will retain a free carried 20% interest in the Lake Giles iron ore project, which LPD Holdings will be entitled to purchase at an agreed price or as determined by an independent expert.

Mr David Barwick chairman & CEO of MacArthur Minerals said that “LPD Holdings' commitment to the project was a major boost for the company. Having identified the iron ore sector as one with significant potential for exploration and mining, we are looking forward to working with LPD Holdings to ensure this potential becomes a reality. Australia is a world leader in iron ore production and the Lake Giles project is well placed to serve seaborne markets, especially with Asian steel companies seeking to establish long term supply arrangements."

Scharrig Mining appoints Mr Berry as CEO

Mining Weekly reported that South Africa mining services company Scharrig Mining will change its name to Sentula Mining this week and has appointed COO Mr Robin Berry as its new CEO with effect from December 1st 2007

Mr Berry who joined Schamin in January 2007, has been largely responsible for several acquisitions and joint ventures over the last year. Prior to joining Schamin he was CEO of Anglo Coal South Africa, where he was responsible for all the South African operations.

Canadian Pacific and Minnesota officials to meet over coal train project

It is reported that officials with the Canadian Pacific Railway are expected to meet with Rochester leaders next week for the first time since the railroad announced it's buying the Dakota, Minnesota & Eastern Railroad. The private meeting will likely be November 27 in Canada.

The main topic is expected to be Canadian Pacific's plans to carry out a coal train project that the DM&E planned, and that Rochester fought in court and in Congress. The city and the Mayo Clinic oppose the expansion because of a potential tenfold increase in train traffic through Rochester.

Olmsted County Commissioner Mr Ken Brown said he was encouraged that the invitation came from Canadian Pacific. He said he hoped it might be a sign that Canadian Pacific will be an easier negotiating partner than the DM&E.

Canadian Pacific announced its USD 1.48 billion purchase of DM&E on September 5th 2007. The deal includes up to USD 1.05 billion in incentives and Canadian Pacific's assumption of USD 250 million of DM&E's debt, which means the overall value of the deal might be as much as about USD 2.7 billion.

Western Canadian plans private placement of debentures

Western Canadian Coal Corp announced that it has entered into an agreement to issue minimum of CAD 30 million and a maximum of CAD 40 million of senior convertible debentures through private placement to a group of investors led by Audley European Opportunities Fund.

Western Canadian said it has planned to use these offering proceeds for working capital requirements at its Wolverine coal mine to reduce current level of principal and interest due under its existing bank debt, and for general corporate purposes.

Western Canadian Coal also announced that it intends to conclude an agreement by this year end with its major shareholder, Cambrian Mining.

Kirby starts steel building factory in Vietnam

It is reported that the Kuwait based Kirby Building Systems kicked off construction on its first pre engineered steel buildings and structures in southern Dong Nai province of Viatnam on November 22nd 2007. Located on a 6.5 hectare land in Nhon Trach 3 Industrial Park, the USD 15 million project will be capable of turning out 40,000 tonnes of products annually.

Mr Joseph Matthew GD of Kirbey said that the domestic market would buy around 60% of the factory’s output and the remaining would go to markets in Southeast Asia and Australia.

Currently Kirby has offices in HCM City , Da Nang and Ha Noi and two additional offices will open in Hai Phong and Can Tho to support sales.

Kirby runs a global network of 24 offices. An additional 10 offices, excluding those in Vietnam, will be added next year. A second factory will be built in the north, probably in 2009 with an estimated investment of 20 million USD. This second project will help increase Kirby’s total capacity in Viet Nam to 100,000 tonnes per year.

Zamil Steel to build new seam roof factory in Thailand

Khaleej Times reported that Saudi based Zamil Steel is planning to build a new factory in Thailand as part of its expansion program targeting Southeast Asia and the Far East.

Mr George Kobrossy GM of Zamil Steel said that "Zamil chose to build a new factory in Thailand because it wanted to better serve its many local clients. We have had a very successful sales office in Bangkok since 2000. We have found Thailand to be a very suitable investment location because of its dynamic and vibrant economy. We believe its strategic location and outstanding infrastructure will bring us and others a sound long term investment in this region."

Mr Somsak Yamasamit Zamil's senior adviser for Thailand said that Zamil had also been very successful with a sales and marketing office in Bangkok since 2000 and this new factory will help them ramp up their business. The Thai factory will manufacture Zamil's MaxSEAM roof system. He added that "It is one of the strongest and most weather tight standing seam roof systems available today."

Mr Kobrossy said that Zamil Steel had built more than 45,000 steel buildings in more than 85 countries. It has been operating in Vietnam since 1993 in JV with Mitsui. Zamil and Mitsui built a factory that is capable of producing 50,000 tonnes of steel buildings annually. To date, Zamil Steel Vietnam has produced more than 1,500 steel buildings across Southeast Asia. In Vietnam, Zamil has more than 700 employees and is now the largest manufacturer and exporter of pre engineered steel buildings in Southeast Asia. He said that "Our Vietnam plant showed Zamil's commitment to the region and it improved our turnaround cycle and met more of our customers' needs. We have constructed buildings from Panama to Mexico and from Vietnam to Japan."

Zamil Steel prefabricates steel factory structural components that are shipped by containers all over the world to the construction sites. He further added that "At Zamil Steel, we have designed and fabricated pre engineered steel buildings that range in complexity from a simple warehouse to a 95 meter clear span aircraft hangar and a 4,500 tonnes complex steel rolling mill."

In the last 30 years, Zamil Steel has become one of the world's leading manufacturers and suppliers of quality pre engineered steel buildings for factories, warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, sports centers, supermarkets, office buildings, car parking sheds and high story buildings.

UAE may introduce VAT in 2008

The Gulf News reported that the United Arab Emirates, which has thrived in an environment free of corporate and personal income tax, could introduce value added tax next year. As per report, Dubai Customs recently undertook the second phase of a VAT study that will include the completion of the legal aspects and the groundwork of its infrastructure, especially the collection of taxes.

Mr Abdul Rahman al-Saleh ED for corporate affairs at Dubai Customs told Gulf News that “We are currently carrying out various studies on the implementation of VAT in a year’s time.”

As per report, Dubai Customs handles 80% of the UAE’s imports and exports that are worth around AED 860 billion (USD 234 billion).

Pakistan unrest could discourage investors

It is reported that companies are wary of investing in Pakistan after its president declared a state of emergency in the country. Economists have warned that any long term political instability could have an effect on outside investment in the country.

Construction companies claim their confidence in investing in Pakistan has been shaken by the political turmoil in the country. In recent years, Pakistan has seen a huge amount of investment from GCC countries. Recent figures suggest that the UAE could invest US USD 50 billion within the next few years. Many companies, including Emaar, the Giga Group and Limitless have announced projects for the area. Now with the threat of sanctions and expulsion from the Commonwealth if democracy is not restored, many believe that investors could look elsewhere.

Mr Ani Ray director of Simplex Infrastructure told Construction Week that “He believes there could be some long term effects from the problems in Pakistan. There have been a number of delays because workers will not be turning up to work. It will mean that a number of projects will miss their deadlines, but I doubt that any projects will be shelved. Many companies will think twice about investing in Pakistan because of the turmoil. But I think this will only be in the short-term maybe three to six months because the turmoil will go."

The Giga Group is building projects worth USD 330 million in Pakistan, in conjunction with the Al Ghurair Group. It has also teamed up with Emaar Properties to develop the USD 2 billion Crescent Bay in Karachi. Giga Group spokesman Naveed Pirzada said it was too early to see how the projects would be affected, but said many of them had been unaffected by the trouble.

Limitless has also been lining up a number of projects in Pakistan. Spokeswoman Ms Rebecca Rees said the ongoing crisis was not deterring this planning stage. She said: "Limitless continues to closely monitor and assess all of its markets, including Pakistan, and remains positive about its plans for the country."

However, a spokesman for the Pakistani Consulate in Dubai reassured investors that they should not worry about investing in the country.

Earlier this month, Pakistan's President General Pervez Musharraf, declared a state of emergency in the country after dissolving the government and arresting senior government officials.

Dubai Ports IPO got oversubscribed by 19 times

Khaleej Times reported that investors have offered USD100 billion for shares in the initial public offering of Dubai Ports World, 19 times more than the maximum USD 4.96 billion it is seeking to raise.

But it is still unclear at what price DP World will sell the 23% stake as it seeks to pay back holders of USD 3.5 billion of bonds that mature in January 2008. A source said that investors were being given an indicative price range of USD 1.25 to USD 1.30, which would value the company at between USD 20.75 billion and USD 21.58 billion.

DP World, which last year bought British port operator P&O for USD 6.8 billion, manages 42 terminals in 22 countries. It plans to almost double capacity to 90 million containers by 2017, expanding in countries including the UAE and China.

Chinese construction giant Zoomlion to build its Dubai office

It is reported that China’s top construction machinery manufacturer Zoomlion, is developing a major presence in Dubai to accelerate its multi million dollar business growth in the Middle East. Zoomlion will break ground on a USD 2.72 million spare parts warehouse and service centre in Dubai’s Jebel Ali Free Zone, where it established a UAE branch office in April 2008 and expansion across the Gulf region will soon follow.

Mr Chen Peiliang GM of Zoomlion International Trade Corporation Limited said that “We are planning to set up new Zoomlion offices in each of the Gulf countries. Currently its overseas market has exceeded more than USD 120 million, with the Middle East contributing about 30% of that. The Middle East is very important to us and we are looking forward to even more growth in this area. The Big 5 PMV is an excellent opportunity to meet potential partners throughout the region as well as reinforce relations we already have here.”

Zoomlion is among a broad range of plant, machinery, construction vehicles and equipment suppliers who will be using the event to meet face to face with key buyers from across the region and overseas. It manufactures a wide range of construction industry machinery, including tower cranes and trailer concrete pumps which are a familiar sight on building sites in the UAE and across the Middle East. Zoomlion, which increased sales in Middle Eat from USD 8 million in 2005 to USD 19 million in 2006, is forecasting a leap in sales of USD 40 million this year and USD 70 million in 2008 on the back of the Middle East construction boom.

Indigo Group starts construction on 2 developments in International City

Indigo Group, one of the UAE's fastest growing property development companies, has confirmed that construction has started on 2 developments located in the Central District of International City. Indigo Optima 1 and 2 are two unique, mid rise building developments, currently providing the only business space solution within the International City Master Community phase 1.

Mr Ramesh Sawlani director of Indigo Properties is confident that the two developments will be eagerly awaited by customers. He said that “We are very pleased to confirm that construction has begun on these two developments at this crucial phase in the long term development of International City. Indigo Optima will add a new dimension to our already diverse portfolio and provides added proof that Indigo Properties is delivering both exciting and relevant projects for Dubai.”

In a dual announcement, Indigo confirmed that the main construction contract has been awarded to Bhatia Constructing Co LLC. The total value of the combined projects is AED 180 million.

Mr Ajay Bhatia MD of Bhatia Constructing Co LLC said that “We are delighted to be working with Indigo to deliver these two fantastic developments. We have an excellent track record delivering quality build, on time and to budget. We look forward to a blossoming relationship between our two companies.”

The shoring contract for Indigo Optima 1 was awarded to Strongpile Foundations LLC while the shoring contract for Indigo Optima 2 was bagged by SS Lootah Construction Company. Both companies have a strong reputation in this kind of specialized work with impeccable credentials. Shoring works has already started on both sites. Indigo Optima 1 and 2 will feature innovative mix and match office and retail space and are designed to provide the flexibility that Dubai businesses are demanding. The anticipated completion date is July 2009.

Al Shaer Engg wins contract to expand King Abdul Aziz Airport

ME Steel reported that Saudi Arabia has awarded Al Shaer Engineering a 5 year contract worth SAR 256 million to expand the King Abdul Aziz Airport by raising its capacity to 30 million passengers a year in the first phase. Al Shaer will also construct facilities to allow big jets such as the A380 super jumbo to land and dock at the airport.

The latest contract is part of a SAR 112 billion overhaul of the airport, which includes doubling the capacity of the Haj terminal from 4.5 million to 9.2 million passengers by 2025. The expansion also includes an air freight village to handle 3 million tonnes a year and parking lots for 25,000 vehicles. The airport will be linked to airports in Makkah and Madina by express trains and to central Jeddah by light trains.

Meanwhile Mr Abdullah Al Rehaimi president of General Authority of Civil Aviation said that it is planning to construct a new airport in Al Qunfuda and 4 other airports in different areas. He added that experts are studying altitude regulations in the zones surrounding international airports as part of a strategy to regulate urban construction and development around the airports in Jeddah, Riyadh and Dammam.

DEWA plans capacity increase

Khaleej Times reported that Dubai Electricity & Water Authority has laid out its expansion plans for the next decade in a prospectus issued to investors ahead of its bond issue through which it expects to raise USD 2 billion.

The plans, which come amid fast growing demand for power and water across the Gulf, have been laid out in a prospectus issued to investors ahead of a bond issue. It is hoping to raise up to USD 2 billion in the bond issue, although far more funding will be required to complete the plans.

By 2017, DEWA plans to have a total installed capacity of 21,907 MW of power and 1,038 million gallons a day of water up from the current 5,448 MW and 278 million gallons a day. The additional capacity is required to meet a surge in electricity demand, which has been growing at 15% a year.

Between 2008 and 2012, DEWA plans to increase its installed electricity and water production capacity by 2.5 times. This will require up to USD 19.1 billion in capital expenditure, which will be funded largely by borrowing from banks or through the capital markets. It is also seeking government approval for an increase in its water and electricity tariffs in the future, although this is unlikely to happen in the near future.

The upcoming projects are as follows

Capacity in MW
*The station at Lehbab has the potential to reach a final capacity of 5,000 MW after 2017.

NIGC holds 60% of Iran fossil energy basket - Oil Ministry

Mr Seyyed Reza Kassaeizadeh MD of National Iranian Gas Company said tat it holds 60% of Iran’s fossil energy basket. He added that the company has a strong presence across Iran.

Mr Kassaeizadeh, also the deputy oil minister of Iran, said that all strata of the society should be provided with gas and the construction of pipelines beyond the borders will be more beneficial for people, helping develop relations with other countries.

Iran to build 8 refineries to boost oil output and exports

Mr Aminollah Eskandari refining affairs manager of National Iranian Oil Refining and Distribution Company said that it will construct 8 refineries in the southern city of Abadan in Khuzestan province in order to boost oil products output and exports in line with the goals of Vision 2025.

Mr Eskandari said that the projects include 2 refineries in Hormuzgan, 1 in Khuzestan, Pars Refinery in Shiraz, Anahita Refinery in Kermanshah, Shahriar Refinery in Tabriz, second phase of Arak Refinery and Caspian Refinery in Neka which will have the total daily refining capacity of 1.48 million barrels. Domestic refineries currently process 1.7 million barrels of crude per day. He added that “Some foreign companies have applied to cooperate in the refining sector.”

Iran also plans an investment of EUR 11.7 billion on building 7 refineries and refining plants to meet the latest European standards. The Persian Gulf Star Gas Condensates Refinery in the southern region of Asalouyeh is among the future project that aims to refine 360,000 barrels of gas condensates per day and to produce gasoline, aviation fuel and other products. It will be constructed at a cost of EUR 1.7 billion in 36 months.

Sabban Towers project to be completed by mid 2008

The Peninsula reported that construction of the superstructure on the QAR 1 billion Sabban Towers project has been completed by Sabban Property Investments. Value added engineering processes were and will be used to make the Towers the first carbon neutral development in the region.

The Sabban Towers are currently under construction on The Pearl Qatar and will be completed in the second quarter of 2008. The developer recently held a 'Topping Out' ceremony with the final superstructure cement to be laid, using golden trowels by Mr Issam Al Sabban CEO of Sabban Property Investments and Mr Khaldoun AbouSaleh MD of Afrina Trading and Construction Company.

Mr John Browne MD of Sabban Property Investments said that "The timely completion of the superstructure marks our dedication to deliver our projects to customers as soon as is practically possible and to continue our efforts to remain transparent and open about progress at all times."

According to the developer, it has reduced carbon emissions by 14.4% by investing in value added engineering processes in the construction phase. Sabban Property Investments has partnered with Carbon Neutral Company to achieve carbon neutral status for the Sabban Towers by assessing, reducing and offsetting its greenhouse gas emissions.

To date, the developer has invested in carbon offsetting projects including a forestry program in Uganda, a renewable energy plant in New Zealand and an energy efficiency program in Jamaica and will be announcing the second phase of offset projects shortly.

Dana Gas opens its new office in Iraqi Kurdistan

Dana Gas has inaugurated its new Suleymaniya office in the Kurdistan Region of Iraq. The office was officially opened by Mr Othman Shwani minister of planning of the Kurdistan Regional Government and Mr Hamid Dhiya Jafar executive chairman of Dana Gas in the presence of many local officials, members of Dana Gas' board of directors and senior management.

It is noted that agreements were signed with Dana Gas by Mr Nechirvan Barzani Prime Minister of the Kurdistan Regional Government in April 2007, to produce, process and transport natural gas from the Khor Mor gas field.

Chinese firms win bid for Afghan mine

It is reported that China Metallurgical Group Corp and Jiangxi Copper Co plan to spend around USD 3.7 billion to develop a copper project in Afghanistan and expects to produce 220,000 tonnes of copper a year.

The parties formed a consortium which participated in a tender to develop the Aynak Copper Mine. They have been notified by the Afghan Ministry of Mines that the consortium was selected as the preferred bidder to develop the Aynak mine.

Jiangxi Copper said in a Shanghai Stock Exchange filing that it will own at least 20% of the consortium should a final agreement be reached with the Afghan government. It will have the right to buy more than half of the copper concentrate products to be generated from the mine in accordance with international practice.

The mine has total reserves of 705 million tonnes of ore with an average copper content of 1.56% comprising 11 million tonnes of copper metal deposits.

Niko wins 4 oil blocks in Pakistan

It is reported that Canadian Niko Resources has won four offshore exploration blocks in the Indus Basin off southern Pakistan.

The offshore blocks cover 9,920 square kilometers, the majority of which are located in 200 meters of water.

Niko is now negotiating a production sharing agreement with the Pakistani government.

Ansteel and ThyssenKrupp steel distribution JV starts in Changchun

It is reported that Ansteel ThyssenKrupp steel distribution company starts up in Changchun recently.

Ansteel ThyssenKrupp Steel Distribution Co is a joint venture by Ansteel New Rolling Steel Co and ThyssenKrupp. Total investment of the JV is USD30 million and each companies takes 50% shares.

The joint venture is specialized in the production, process and distribution of steel plate, technology consultation service, storage and logistics. It mainly provides services to auto producers in the northeast of China.

Shanxi coke export volume in 10 months up by 57% YoY

It is reported that coke competition in Shanxi province has been further improved after several price increases since the beginning of the year. The export amount from January to October 2007 amounted to 7.3585 million tonnes increasing 14.46% and export volume USD 1.395 billion up by 56.38%.

Moreover, raw coal with high export amount previously now has continued to shrink due to continuous limitations on the export of energy products. From January to October 2007, coal export in Shanxi province amounted to 3.7521 million tonnes down by 19.14% and export volume USD 277 million down by 7.08%.

Shanxi to levy additional tax on coal mining

Interfax China reported that Shanxi's provincial government released a notice recently requiring local coal companies to pay fees to fund environmental restoration and improvement activities around the region's coal mines, as well compensate employees of bankrupted local coal companies.

According to the Shanxi Evening News, local coal companies must pay CNY 10 (USD 1.35) for each tonne of coal produced in order to fund environmental measures around coal mines aimed at protecting water sources, preventing silt and mudflows and controlling pollution that would have been caused by mining activities. Funds will also be used to restore previously damaged areas.

In addition, Shanxi coal companies are required to pay CNY 5 (USD 0.68) per tonne of coal produced to compensate lay off employees of bankrupted local coal companies, as well as various other training and social security expenses.

Ms Xia Bing a senior researcher with the Shanxi Provincial Academy of Social Science told Interfax that these two fees will be levied from the beginning of next year onwards, as some coal companies have told the government that they are under already under too much financial pressure this year and could not pay the fees. Ms Xia added that the average production cost for large local coal companies has gone up CNY 10 per tonne to CNY 20 per tonne this year due to the new fees.

The new fees come in addition to the sustainable coal development fund fees that were levied on local coal producers in Shanxi Province in March 2007. Under the fund, companies are required to pay CNY 14 (USD 1.80), CNY 18 (USD 2.43) and CNY 20 (USD 2.70) for each tonne of steam coal, anthracite coal and coking coal output they produce.

Ms Xia said that the sustainable coal development fund is operated under the auspices of the government in order to address several issues, including environmental protection. Funds raised by the two new fees will be kept in separate accounts, instead of being mixed in with other government funds, and will be used specifically to address the problems mentioned above. The government will supervise the expenditure of these funds.

Ms Xia also noted that in the past Shanxi charged for and maintained an energy construction fund for over 20 years, but those fees were levied by the local Shanxi Provincial Coal Transportation and Sales Corp a large company established during China's planned economy era, instead of by the government itself. Fees levied for the energy construction fund have been suspended this year, and the sustainable coal development fund will take those previous fees place.

CNY 260 million pellet project to come on stream in Huoqiu

It is reported that the Huihuang Metal Pellet Co Ltd based in Liu'an of Anhui Province with an investment of CNY 260 million is reported to complete and start operation soon.

The iron ore deep processing project with annual output of 1.2 million tonnes acid pellet will be carried out in two steps.

The first phase involves CNY 130 million fixed asset investment and will initiate operation in November 2007, with annual production value estimated at CNY 600 million and pretax profit of CNY 50 million.

(Sourced from MySteel.net)

China may further raise ferrotungsten export duty

It is reported that China may uplift ferrotungsten and ammonium paratungstate export duty in a bid to protect mineral resources. It is forecasted to be implemented on January 1st 2008.

Chinese government is taking strict measures against its tungsten alloy export, cutting tungsten alloy export quota by 500 tonnes to 14900 tonnes in 2008. At the present time, China traders quote APT export price at 240 USD per tonne unit, but market price in EU has decreased to USD 239 per tonnes USD 240 per tonne.

China ferrotungsten export price is at USD 33 per kilogram W to USD 33.5 per kilogram W and tungsten concentrate price is CNY 95,000 per tonne to CNY 97,000 per tonne in China home market.

Chinese iron ore import from Myanmar on rise

Figures from China Customs exhibited, China imported 1.36 million tonnes of iron ore from Myanmar in October 2007, only less than that from Australia, Brazil and India.

As for the first nine months of this year, China only imported 250,000 tonnes of iron ore from Burma. It is said, owing to iron ore price surge in recent years and international seaborne expense spike, steel companies meet much large pressure. Therefore, China steel mills started to purchase iron ore from neighboring countries and some invest in mineral sources in Southeast China.

In the first half of 2007, Chongqing International Economic and Technological Cooperation has pooled CNY 5 million for the mining right of an iron ore mine in Burma.

China and South Korea coal price talk breaks down

It is reported, South Korean coal importers decided to discard coal import from China for its unacceptable price.

One official from South Korea disclosed, due to too large price differential between two sides, bilateral coal trade talk has broken down and South Korean coal consumers from power generating industries head to South Africa and Russia for coal.

China National Group represents China coal suppliers and Korea East West Power Co its counterpart.

China still needs to import auto grade steels

Recently, steel sheets for economical saloon cars and mini cars in China's auto steel have obtained self support however sheets used for medium and high grade cars can not supply from domestic steel mills.

According to some relative data, China can only supply 70% steel plate for medium and high grade cars and the rest one third still needs import. Moreover, some wire and bar products used for saloon cars and trucks also need import in China.

Jinan steel gets the permission to come into the market

It is reported that Jinan steel held the temporary shareholder convention on November 22nd 2007, the shareholders agreed that to add A-share project for Jinan steel.

According to the announcement, the assets which be used in the acquisition of objectives of the Jinan Iron and Steel Group assets mainly include: hot rolling plant, cold rolling plant, gas generating engineering, power plants, department of transportation, department of automation and other related assets. It is estimated that the net asset value is CNY 6.736 billion.

Meanwhile, purchasing these assets will help to increase varieties of products, play a synergistic effect, build international advanced and well known brand for Jinan steel.

Shougang succeeded in producing bearing grade WRC

It is reported that recently, Shougang high speed wire plant has succeed in producing out 15 bearing steel aiming at the demand of market and consumers, so now there are total 30 kinds of products by high quality bar line in Shougang.

After the successful completion of the first batch of 106 tonnes 15 bearing steel, the products have been delivered to the users.

In order to accomplish the development of this specifications bearing steel production, the plant actively organize relevant technical personnel to make much preparation, develop new technology to wear water, and organize technical training for staff in advance.

Basteel plans to achieve daily output at 8,600 tonnes

It is reported that Basteel 120 tonnes converter has been put into production and try to use No 2 heat furnace, it is ready for achieving daily output at 8,600 tonnes by the end of 2007 and weekly output at 60,000 tonnes.

NLMK to acquire controlling stake in Maxi Group

Novolipetsk Steel confirmed that it is in discussions with Yekaterinburg based Maxi Group and said that the parties have reached an agreement in principle on the sale of a controlling interest in Maxi Group to NLMK. The transaction, which is subject to execution of a definitive shareholders agreement and approval by NLMK’s Board of Directors, is expected to be completed by the end of the year.

Maxi Group is a vertically integrated group comprised by two major divisions a production division OJSC Metallurgical holding and a raw materials division CJSC Uralvtorchermet, that form the production chain from scrap collection and processing to production of high value added steel products. The Company owns CJSC Nizhneserginskiy Metizno-Metallurgicheskiy Zavod, a hardware producer, and CJSC Revdinskiy Trubnyi Zavod, a tube producer. Maxi Group also has plans to build steel mills in Kaluga region near Moscow and in several other regions of Russia.

Mr Alexander Popov spokesman for Maxi Group said the company's owner Mr Nikolai Maximov would transfer control to Novolipetsk in exchange for credit, debt refinancing and investment. He did not specify the exact size of the stake. He added that "The terms of the deal foresee an immediate loan of around USD 400 million from NLMK, the subsequent refinancing of the debts of Maxi Group subsidiaries and also the financing of an investment program."

Mr Popov said Maxi Group's two steel plants in Revda and Nizhny Sergy both in the Urals region of Sverdlovsk and both with capacity to produce 1 million tonnes a year were still operating, but that production rates had declined.

Maxi Group said this month it had signed a deal to sell a 50% stake to Mr Alisher Usmanov, the main owner of steel maker and iron ore miner Gazmetall. But Mr Usmanov's company issued a statement on Thursday saying the deal had been scrapped.

Evraz signs USD 3.2 billion loan agreement

Evraz Group announced signing of a USD 3.214 billion structured multi tranche credit facility. The loan facility has the interest rate of LIBOR+1.8% and consists of a USD 2.714 billion 5 year tranche secured on assignment of trade receivables and a USD 500 million 3 year unsecured tranche. The facility is guaranteed by Mastercroft Ltd.

Evraz Group applied USD 1.8 billion of the deal proceeds to repay the bridge loan it raised earlier in 2007 to finance the Oregon Steel Mills Inc acquisition with the remainder to be used for general corporate purposes.

The released noted that the deal was arranged and fully underwritten by a group of 10 banks coordinated by ABN Amro Bank NV London Branch and included the Bank of Tokyo-Mitsubishi UFJ Ltd, Barclays Capital, BNP Paribas SA, Calyon, Commerzbank Aktiengesellschaft, Deutsche Bank AG Amsterdam Branch, ING Bank NV, Sumitomo Mitsui Banking Corporation and UBS Limited as the joint mandated lead arrangers. Deutsche Bank AG Amsterdam Branch was appointed facility agent and security trustee for the syndicate.

Clifford Chance acted as legal counsel for the banks, and the Company retained Cleary Gottlieb Steen and Hamilton as its legal advisors.

Ufaleinikel increases nickel output in 9 months of 2007

Interfax reported that Ufaleinikel, a division of Industrial Metallurgical Holding, produced 10,469 tonnes of nickel in January to September 2007, 0.6% more than in the same period last year.

Ufaleinikel reported that Nickel production edged up to 3,524 tonnes in the third quarter from 3,493 tonnes in the second and 3,452 tonnes in the first.

However, cobalt production tumbled 40.5%YoY to 1,111 tonnes, including 113 tonnes in the third quarter, 490 tonnes in the second and 508 tonnes in the first.

Ufaleinikel produces granulated nickel, nickel monoxide, metallurgical cobalt and cobalt in oxides.

NLMK ratings will not be affected by planned acquisition – S&P

Standard & Poor's Ratings Services said there will not be any immediate effect on the ratings and outlook on Russian steelmaker OJSC Novolipetsk Steel's possible acquisition of a controlling stake in mini mill steelmaker Maxi Group.

NLMK has a global scale rating of 'BB+' with stable outlook.

The amount and terms of the deal have yet to be determined, but NLMK has considerable headroom for acquisitions at the current rating level due to its low leverage and strong cash flow generation capacity.

S&P said it will monitor the progression of discussions between the two companies, as well as the amount and financing structure of the deal.

Mechel completes redemption of its first bonds issue

Mechel announced that it has redeemed all of its outstanding triennial certificated interest bearing inconvertible bonds payable to bearer of series 01 with obligatory centralized keeping.

The series 01 bond were issued in November 2004. The number of the bonds placed was 2 million. Par value of one bond was RUB 1,000 and the total amount of the bonds redeemed was RUB 2 billion.

Currently, Mechel has the following two bonds on the stock market: Mechel Trade House bonds, placed in June 2003 with six years bonded loan totaling RUB 3 billion and placed in June 2006 second issue bonds Mechel OAO with RUB 5 billion total amount, which is included in first level quotation list “#8221; on Moscow Interbank Currency Exchange.

Russia to China oil pipe line to commission in 2008

Reuter reported that Russian government is sticking to plans to launch its first oil route to China in 2008 despite confirmation from pipeline monopoly Transneft that it is facing serious construction delays.

Mr Viktor Khristenko Industry and Energy Minister of Russia said the schedule to complete the first USD 11 billion, 600,000 barrel per day section of the pipeline by the end of 2008 is still in force. He said "The company indeed has some difficulties on certain parts of the route, with certain contractors. But we have not revised the schedule."

Transneft, which is building the route from East Siberia to Scovorodino near the Chinese border, said a recent inspection had confirmed serious problems but did not say if the start up would be delayed. Transneft said in a statement that "The management board highlighted that construction work was falling seriously behind schedule and that there was no construction work at all on a 704 kilometer section, representing 26% of the whole route. The firm said the first phase pipeline was 41% complete instead of a projected 60%, while pumping stations were 24% ready instead of 56%.”

Caspian gas pipe line project may start early

RIA Novosti citing Mr Gurbanguly Berdimuhammedov president of Turkmen as saying that a natural gas pipeline from Turkmenistan along the Caspian coast of Kazakhstan and onto Russia could start to be built ahead of schedule.

Mr Gurbanguly Berdymukhammedov said after talks with Mr Viktor Zubkov Russia's premier that "Under the feasibility study and design documents, we were due to start the construction in the second half of 2008, but Turkmenistan is capable of launching the project ahead of schedule."

Mr Zubkov while speaking at a joint news conference said that they had agreed to finalize the deal in the near future and start work shortly. He said they had reached absolute understanding on cooperation in the oil and gas sector. He added that the two countries also plan to step up the modernization of the 1974 Central Asia Center gas pipeline, which runs from Turkmenistan via Kazakhstan and Uzbekistan to Russia.

The pipeline, to pump 10 billion cubic meters to 20 billion cubic meters of gas to Europe via Russia's pipeline network is a rival project to a Western backed trans Caspian pipeline that bypasses Russia, currently the sole re exporter of Turkmen gas.

Turkmenistan, the second largest gas producer after Russia among ex Soviet states, exports gas through a Russian controlled network of pipelines, but has been considering diversifying export routes.

Gazprombank to approve development strategy up to 2015

RIA Novosti cited Mr Alexander Sobol the bank's deputy chairman as saying that the board of directors of Gazprombank may approve a development strategy up to 2015 by the end of 2007 including a possible IPO.

He also said the main banking arm of Gazprom had a net profit of USD 700 million by International Financial Reporting Standards in the first six months of 2007. The figure is approximately the same as last year's result.

Mr Alexander Sobol added that the bank planned to spend around USD 500 million of its 2008 budget on the acquisition of regional banks in Russia and other CIS countries.

Donbas Fuel Energy to invest USD 380 million to upgrade plants

Ukrainian Journal Staff cited Mr Garry Levesley director for Generation and Distribution of DTEK as saying that Donbas Fuel Energy Company plans to invest USD 380 million in 2007-2012 into the upgrade and development of the Zuyevskaya, Kurakhovskaya and Luganskaya thermal power plants.

He said "While earlier repairs were made to allow the equipment to keep running, now the task is to increase the efficiency and security of their work through installing modern technologies in this sphere."

Turkmen gas price for Russia could jump 30% in 2008

RIA Novosti cited Mr Alexei Miller CEO of Gazprom as saying that Turkmenistan plans to raise its natural gas price for Russia by at least 30% to USD 130 per 1,000 cubic meters next year. Mr Alexei Miller said that "We have not given a final answer to our Turkmen colleagues. Talks will resume next week. He added that the company needed time to assess the consequences of the move.”

The price rise will affect Ukraine, which buys Turkmen gas from Russia. Talks on a price formula for gas supplies to Ukraine in 2008 are under way between Moscow and Kiev.

Turkmenistan supplies about 50 billion cubic meter of gas annually to Russia at USD 100 per 1,000 cubic meters under a 2006-2009 deal signed by Mr Saparmurat Niyazov Gazprom and the Central Asian state's late leader.

Turkmenistan, the second largest gas producer after Russia among ex Soviet states, exports gas through a Russian controlled network of pipelines, but has been considering diversifying export routes. Turkmen gas has been supplied through the 1974 Central Asia Center pipeline, which runs through Uzbekistan, Kazakhstan and Russia.

MMK-Metiz stocks quotation suspended

In RTS Board the quotation of the MMK-Metiz preferred stocks was suspended due to their conversion into the common stocks.

The swap ratio is set at one A-preferred stock per one common of RUB 1 par In November 2007 the new issue was registered in the volume of RUB 3.243 million covering 3243875 shares of RUB 1par.

In the 2nd quarter of 2007, its share capital was worth RUB 25.7 million split in 22432058 common (87.37%) and 3243875 A-preferred stocks (12.63%).

MMK Metiz is included into MMK Group. It is a maker of steel wire, electrode products, metal nets. In 2006 610,000 tonnes of products were made or 25% higher prior year.

E.ON increases share in OGK-4 to 73%

RIA Novosti reported that Germany's E.ON Russia Power GmbH has increased its stake in OGK-4 from 70.4% to 72.7%.

The German power utility closed a deal in mid October 2007 to acquire a 69.34% stake in OGK-4. A month later, E.ON raised its share to 70.4%.

OGK-4 has a total installed generation capacity of 8,630 MW and incorporates five thermal power plants one in Western Siberia, one in the Far East, two in Central Russia, and one in the Perm Territory in the Urals.

OGK-4's other shareholder is Russia's state controlled electricity giant Unified Energy System.

South Stream gas supplies to begin in 2013

Itar-Tass reported that gas supplies under the project South Stream will begin in 2013.

This decision was made during a working meeting of Mr Alexei Miller chief of the board of governors of Gazprom and Mr Paolo Scaroni the chief of ENI concern recently.

Pavlohradvuhillia may buy equipments from German DBT

According to Mr Yuriy Cherednichenko the head of the coal department at Donbas Fuel Energy Company, Pavlohradvuhillia, Ukraine’s biggest coal producer, is in talks with Germany's DBT GmbH on the supply of a first coal plow for the Stepnaya mine in 2008.