Bolivian Congress approves JSPL El Mutun deal - Report

Reuters reported that Bolivia's Congress on Friday ratified a contract that will allow Jindal Steel and Power Limited to exploit El Mutun iron ore deposit and produce steel in eastern Bolivia.

The chamber of deputies said in a statement that "Tonight, the National Congress passed two law bills through which we ratify the contract signed between the State and the Indian company Jindal Steel & Power Limited.”

The first bill ratifies the contract with JSPL, while the second creates a state run mining company that will tie up in a joint venture with JSPL.

The Bolivian government called for a joint meeting of both chambers of Congress on Friday in order to garner enough support to ratify the deal, after the opposition controlled Senate refused to endorse the contract as it had been signed with JSPL.

The 40 year contract gives JSPL the right to mine approximately half the area of El Mutun, estimated to contain iron-ore reserves of more than 40 billion tonnes, near the border with Brazil, in a project worth USD 2.1 billion. As part of the project, JSPL has promised to develop an integrated steel plant with an annual capacity of 1.7 million tonnes, which would start up by 2010.

Supreme Court rejects Vedanta bauxite mine plan in Orissa

It is reported that Vedanta Resources’ plan to operate a USD 900 million refinery in Orissa has hit a fresh obstacle after India’s Supreme Court set new conditions for the project.

The Supreme Court refused to let the project in Orissa go ahead in its present form on the grounds that it could affect sustainable development and asked Vedanta to come back with a new plan. The court was hearing the case after opponents challenged Vedanta’s plan, saying it would destroy hills regarded as sacred, displace local people and ruin the rich biodiversity of the area.

The Supreme Court said that Vedanta would have to give money for forest destruction, wildlife management and tribal development totaling around USD 180 million. Other conditions would include handing over 5% of pretax profits annually from its mining projects across India to the Orissa government. The order said that Vedanta would also have to set up a special purpose vehicle to ensure that environmental regulations were met. It added that Vedanta must file an interim application within 8 weeks saying if it agreed to the conditions and the Supreme Court would reconsider the project.

It is noted that Vedanta has been fighting for 3 years to obtain clearance for open cast mining of vast deposits of bauxite in the densely forested Niyamgiri hills to feed the USD 900 million alumina refinery it has built nearby.

Vedanta’s battle to mine bauxite to feed the refinery in forests considered sacred by indigenous people has been seen as a test case in India, pitting industrial development against the interests of local inhabitants and the environment.

ArcelorMittal plans India listing - Report

It is reported that Mr LN Mittal president & CEO of ArcelorMittal said that he wants to list the company on the Indian stock exchanges by using the Indian Depository Receipts.

He was cited as saying that ‘‘we want to give Indian investors an opportunity to be a part of the world’s largest steel company and would like to list ArcelorMittal in India. Much as I would like to right away current government norms for this purpose are not so feasible. So, we will have to wait a little while before going ahead with our plans.’’

As per reports, the problem is that India is yet to see capital account convertibility that means the money raised by a foreign company in Indian rupees from the Indian markets cannot be repatriated back to its country of origin freely.

Indian aluminum industry can attract INR 100,000 crore – Report

Mr D Bhattacharya MD of Hindalco Industries terms the aluminum industry as the fastest growing sector among all the metals and said that the sector had the potential to attract INR 100,000 crore investments. He added that the total production capacity of aluminum will reach up to over 5 million tonnes from the present 1.5 million tonnes in next 4 years.

He said, at 5 million tonne production capacity, India would be among the top 3 aluminum producers in the world. At present, India ranks 6th in alumina production, 8th in aluminum production and 5th in aluminum consumption in the world.

Mr Bhattacharya, while addressing at international conference on aluminum “Incal 2007”, said that India can position itself as the primary producer, consumer and exporter of aluminum to take advantage of its enormous bauxite reserves, low production costs and huge domestic market potential. He added that “Of late, aluminum production is seen a shift from Europe and the West to Asia, which now accounts for close to 40% of the global aluminum production as compared with a mere 12% share in 1980. The growth in aluminum consumption is expected to register between 8% and 10% in the future.”

He further added that, while almost all the major aluminum players in India, including NALCO, BALCO and Vedanta, have been ramping up their capacities, Hindalco had planned a INR 26,000 crore capital expansion to increase the capacity to 1.6 million tonnes by 20011-12 from the present 0.5 million tonnes. The electricity sector, which requires over 40% of aluminum, continues to lead in terms of domestic consumption. However, certain new areas besides other sectors like automobiles and construction are expected to boost India's domestic aluminum consumption.

PGCIL inks JV with REL to execute transmission lines

Power Grid Corporation of India Limited announced that it has entered into a 26:74 JV agreement with Reliance Energy Limited to execute 300 kilometer long transmission lines from Parbati to Koldam and Koldam to Ludhiana.

The above lines are part of elements of the transmission system associated with generation projects like Parbati II hydroelectric project and Koldam hydroelectric project.

NHPC is establishing 800 MW Parbati II hydroelectric projects and NTPC is establishing 800 MW Koldam hydroelectric projects in the state of Himachal Pradesh.

SCR January to October freight loading up by 18% YoY

South Central Railway has registered an originating freight loading of 38.87 million tonnes in January to October 2007 period up by 18% YoY as against 32.97 million tonnes in January to October 2006 period. It has also posted apportioned earnings of INR 3,649.40 crore up by 13% YoY as against INR 3,233.33 crore.

According to an SCR press release, the zone achieved the highest punctuality rate of 98.1% during the January to October 2007 period.

Mormugao Port handles record cargo traffic in October 2007

Exim News Service reported that Mormugao Port has handled a record 9,81,046 tonnes of cargo traffic during October 2007, surpassing the earlier record of 9,64,023 tonnes handled in September 2007.

The cargo traffic during October 2007 is as follows

Volume in tonnes

Indian Railway’s steps to increase earnings

Mr R Velu union minister of state for railways said that Indian Railways has introduced a number of schemes like a slew of freight incentive scheme for attracting more rail traffic like
1) Traditional empty flow direction with 30% discount
2) Loading bagged consignment in BoxN with 40% discount
3) Long term special incentive scheme with 20% concession
4) Incremental traffic with 15% discount
5) Lump sum special rates and service level agreement
6) Freight forwarders
7) Two leg freight concession with 15% in busy season and 20% in lean season

Besides, union ministry of railways has been considering individual proposal for grant of freight concession in freight rates to tap traffic. Few proposals are

a) 30% concession of booking of iron ore
b) 50% concession for rice traffic
c) 15% concession for timber waste
d) 13% concession on movement of gunny bale or jute traffic

For passenger traffic, steps taken to increase the earnings are generating additional seating capacity in trains by introducing new trains, reduction of fare of 1st AC and 2nd AC, attaching additional coaches to clear wait listed passengers and introduction of up gradation scheme to upgrade full fare paying passenger to next higher class against available accommodation. As a result of above schemes freight and passenger earning is likely to be increased by 14% during the current year.

The earning from passenger & goods traffic in last 3 years is as under

INR in crore

Indian government approves setting up of nuclear power plants

Mr Prithviraj Chavan union minister of state in the PMO said that the in principle approval has been accorded by union government for the coastal sites at Kudankulam in Tamil Nadu and Jaitapur in Maharashtra, for setting up of 2x1000 MW nuclear power reactors each.

Further, the site selection committee constituted by union government has evaluated the potential of coastal sites in Andhra Pradesh, Gujarat, Orissa and West Bengal for setting up of future nuclear power reactors. However, no decision has been taken.

It is noted that union government has been exploring international cooperation in the civilian nuclear energy sector with all potential partners.

Indian FOREX reserves reach USD 261.923 billion

As per the weekly statistical supplement of the Reserve Bank of India released on November 16th 2007, foreign currency and assets raised by USD 3.659 billion to USD 261.923 billion. While special drawing rights and gold reserves remained flat at USD 13 million and USD 78.11 million respectively.

During the same period, the reserve position in the international monetary fund increased USD 4 million to USD 434 million. Foreign currency assets expressed in USD, include the effect of appreciation or depreciation, on non US currencies such as Euro, Sterling and Yen held in reserves.

Cochin Shipyard charts mega growth path

It is reported that Cochin Shipyard Limited has achieved a record 181,395 DWT in 2007 up by 65% YoY as against previous best of 110,206 DWT in 06. While, its income from shipbuilding, repairs and services stood at INR 720 crore up by 100% YoY and net profit stood at INR 58 crore up by 300% YoY.

However, Cochin Shipyard is yet to achieve its full potential and modernization & expansion plans are being made for building and repairing niche, high tech ships. Growth in skill sets and technical expertise will be its key competitive strength.

Mr M Jitendran CMD of Cochin Shipyard said that “Cochin Shipyard’s unprecedented growth in the last few years can be sustained by modernization and expansion into an international size shipyard. Further, the yard plans diversification into niche high tech products. Towards this end, CSL is preparing detailed plans for additional infrastructure and skills, both short term and long term, required in propulsion system, electronics and clean emission technology.”

He said that “The products under consideration for building and repair by CSL include high tech large crude oil tankers, high speed container ships, LPG, LNG, CNG carriers, chemical carriers, product carriers, electric propulsion and clean technology, specialized Naval auxiliary ships, modern dredgers and other products.”

Mr Jitendran added that “In ship repair, CSL’s aim is to diversify into offshore up gradation and conversion projects. A study is being undertaken to identify the facilities, expertise and skills required for undertaking such projects. Meanwhile the yard posted the highest ship repair income of INR 242 crore in the year 2006-07 up by 59% YoY. The yard has undertaken repairs on specialized oil rigs both Indian and foreign.”

At present, the shipyard has orders for 1 bulk carrier, 18 platform supply ships and one aircraft carrier. Other than the aircraft carrier, all other orders are for exports, with a value of around INR 2,000 crore.

TATA Motors bid for Jaguar and Land Rover backed by unions

It is reported that TATA Motors’ bid for Jaguar and Land Rover received a potentially important endorsement from union shop stewards at the two brands, which Ford Motor is selling. Union backing, while not essential, is seen as important for the politically sensitive deal.

Mr Tony Woodley general secretary of Unite said that the union stewards had made clear their preference to remain part of Ford. However, if a sale went ahead, the workforce’s best interests would be served by finding a partner with an established presence and background in manufacturing. The union said that “Based on serving the best interests of the union members at Jaguar Land Rover, the stewards agreed that TATA best fits these criteria.”

The statement followed presentations to union representatives in London by short listed bidders TATA, Mahindra & Mahindra and buy out group One Equity Partners, whose bid is being led by Mr Jac Nasser, former CEO of Ford. At the meetings, union representatives questioned the bidders about their plans for the two brands, including the possible moving of jobs offshore or other functions now based in the UK.

Some Jaguar Land Rover employees have voiced concerns that an Indian buyer might outsource key engineering or other functions to India or change the two brands’ supply arrangements in the UK. According to a person familiar with TATA’s presentation, the carmaker committed to the 2 brands as a long term investment and endorsed the two brands’ management.

Ford had previously pressed bidders to make undertakings on jobs and plants at the two brands. While, Jaguar fell into financial losses in part because some consumers disliked it’s extensive sharing of production and parts with Ford’s own brand vehicles.

SC allows Lafarge to continue limestone mining in Meghalaya

It is reported that Supreme Court has allowed French firm Lafarge to continue mining operations in Meghalaya for extracting limestone to be used for making cement at its manufacturing plant in Bangladesh.

Lafarge had challenged the order of union ministry of environment and forests, issued in May 2007, asking the company to stop work at quarries on the ground that mining was not permitted in forest areas.

Chattisgarh to get more power allocation from NTPC Sipat STPP

Mr Sushil Kumar Shinde union power minister informed Indian parliament that during the inauguration of the 765 kV transmission system at NTPC Sipat in Chattisgarh on January 20th 2007, it was favorably considered to allocate 300 MW of power from Sipat Super Thermal Power Project to Chattisgarh state for a period of 1 year since the commissioning of the first unit.

Mr Shinde said that “Chattisgarh has been allocated 158 MW from the stage II of Sipat super thermal power project based on the central formula for allocation. Chattisgarh has also been allocated additional unallocated power of about 75 MW from the pool of unallocated power of central generating stations in the Western Region with effect from the date of commercial operation of the first unit of Stage II of Sipat STPP, keeping in view the shortage of power in Chattisgarh as well as that of other states or UTs in the region.”

He added that “Besides the above, Chattisgarh has been allocated 313 MW of power from Stage I of Sipat STPP. Chattisgarh will also get allocation from the unallocated quota of Sipat STPP Stage I.”

India to secure a major stake in the Sakhalin IV & V oil fields

According to media reports, Mr Murli Deora union petroleum & natural gas minister will be seeking to secure a major stake in the Russian Sakhalin IV and V oil fields during a 3 day visit to Russia from November 25th 2007. He said that India is keen to extend its working relationship with Russia beyond the Sakhalin I project.

It is noted that ONGC Videsh holds a 20% stake in the Sakhalin I project, which supplies 2.4 million tonnes of crude to India every year. It is also teaming up with Rosneft to pitch for the Sakhalin IV project.

Port Pipavav acquires 3 quay cranes and 10 RTGs

It is reported that Port Pipavav has received 3 post Panamax quay cranes and 10 rubber tyred gantries from ZPMC of China. The new quay cranes are among the biggest such cranes deployed in any port in India.

Along with the new quay cranes, the port has also received 10 new eco rubber tyred gantries, becoming the first port in India and second in Asia to receive eco rubber tyred gantries. The new quay cranes will operate on the 385 meter long new container berth and will be put into commercial operation in March 2008.

Port Pipavav offers direct weekly sailings to Europe, US East Coast, Red Sea, China and Far East and has thus emerged as an important gateway to container traffic on the West coast.

NHPC eyeing to set up projects in Congo and Ethiopia

It is reported that National Hydroelectric Power Corporation is in talks with the governments of Ethiopia and Congo for setting up projects in Africa. It is also expected to take the JV route for its overseas expansion plans.

Mr SK Garg CMD of NHPC said that “We had discussions with the official representatives of the 2 countries in the presence of the power ministry officials and expect to strike some deals soon and it is in the hydro sector only.”

NHPC is already in discussions with Bhutan, Myanmar and Nepal for several projects. While it is yet to get any information from the Nepal and Myanmar governments on the bids it has submitted, it hopes to bag the projects in Bhutan as there are no political hurdles in the country.

IOC signs MoU with Chattisgarh for bio diesel production

It is reported that Indian Oil Corporation signed a MoU with Chattisgarh government for commercial bio diesel production.

As per MoU, a 74:26 JV will be formed between IOC and Chattisgarh State Renewable Energy Development Authority. The JV will facilitate plantation of bio crops Jatropha spread over 100,000 hectare of wasteland, production of bio diesel through suitable chemical processes and blending & marketing the product through IOC's network of retail stations across Chattisgarh.

As part of this JV, Indian Oil will initiate actions to support large scale Jatropha plantation on wasteland by deploying high quality inputs, modern agricultural tools and social interventions.

PFC to float overseas subsidiary to finance power sector

It is reported that Power Finance Corporation is considering a proposal to float an overseas financial arm for the development of the infrastructure needs of the power sector and a sub committee of a standing group of power minister's on financial issues will be formed to consider implementation of the scheme.

Once the committee gives its final recommendation, PFC will be given a formal approval to set up its externally focused investment arm or a special purpose vehicle. The arm will be operated from an overseas international financial centre such as Mauritius and will leverage India's foreign exchange reserves to provide financing for purchasing machinery and equipment abroad.

As per proposal, the PFC arm will borrow foreign exchange to the tune of around USD 5 billion per annum from Reserve Bank of India. In lieu, PFC will issue bonds to the apex bank. The FOREX money will then transferred to the corpus of PFC arm so as to provide foreign currency loans to Indian power companies to meet their requirement of raw material machinery imports. It has been proposed that loans from PFC arm will not be treated as external commercial borrowings.

HCL to invest INR 900 crore for 2 Greenfield copper blocks

It is reported that Hindustan Copper Limited would invest about INR 900 crore to develop 2 Greenfield copper mining blocks in Jharkhand and Rajasthan.

Mr SC Gupta CMD of HCL said that “The Chaprisideshwar block in Jharkhand would require an investment of about INR 600 crore and Banvas in Rajasthan would need around INR 200 to INR 300 crore. Chaprisideshwar would be developed through a JV as it has reserves of 80 million tonnes, while for Banvas, it would be a mining contract.” He added that the JV would be finalized once the lease was awarded and details of the holding pattern were yet to be worked out.

Mr Gupta said that “We expect to produce 42,000 tonnes this year and are targeting a turnover of INR 2,000 crore. However, the rupee appreciation and a subdued London Metal Exchange might make things difficult.”

HCL has planned to float a SPV for all Greenfield mining activities, along a JV partner. It has tied up with the Monarak Gold Group of Perth in Australia to reopen the Surda mines and Mosabani plant in Jharkhand. HCL is also looking for partnerships to revive and reopen its 4 mines in Jharkhand, which together hold total reserves of 50 million tonnes of copper. It has 4 operating mines, with a total production of 40,000 tonnes.

Gerdau Ameristeel buys Re Bars Inc in Savannah

Tampa Bay Business Journal reported that Gerdau Ameristeel Corp has acquired a Georgia steel manufacturer for an undisclosed amount. Gerdau bought Re Bars Inc an independent manufacturer that was started in 1963 and serves the Savannah area.

Mr J Neal McCullohs vice president of commercial and downstream operations said that "This gives us an entry into a market we have had very little participation in and allows us to continue the expansion of our ReBar Express model."

Tampa based Gerdau Ameristeel has a plant in Baldwin and is the 13th largest manufacturer in Northeast Florida, according to the Business Journal's 2007 Book of Lists, with more than 300 employees. The mill buys and recycles more than 700,000 tons of scrap steel per year, 40% of which is supplied by an onsite recycling operation. Gerdau spent USD 78 million on upgrades at its Baldwin plant over the last year and a half.

BHPB bid for Rio –Rio Tinto’s investor seminar on Monday

Mr Tom Albanese CEO of Rio Tinto and Mr Guy Elliott CFO of Rio Tinot will host a Rio Tinto presentation on Monday November 26th 2007 commencing at 9.00AM at London Stock Exchange.

The briefing is expected to last for approximately two hours. The presentation will be transmitted live over the internet via webcast. A teleconference facility will also be available for participation in the question and answer session.

G Steel aiming at 5.9 million tonnes capacity by 2009

According to Mr Ryuzo Ogino president of G Steel, it is aiming to increase its annual revenues to THB 100 billion and production capacity to 5.9 million tonnes by 2009. Mr Ogino said that G Steel is currently in the process of consolidating with Nakornthai Strip Mill.

Nakornthai Strip Mill another hot rolled coil producer founded by Mr Sawasdi Horrungruang is due to exit business rehabilitation under the Central Bankruptcy Court by the end of the year. G Steel holds 23% of Nakornthai Strip Mill and plans to increase its holdings to 33% in March, with the consolidation complete in the next one or two years.

Dr Somsak CEO of G Steel said that combined revenues of Nakornthai Strip Mill and G Steel were projected at THB 48 billion this year. He added that within two years, G Steel plans to increase its production capacity to 3.4 million tonnes from 1.8 million now. NSM currently has a capacity of 2.5 million tonnes. Dr Somsak said that ''The increase in production capacity will help boost our competitiveness in the global market and also reduce operating costs as we prepare for market liberalization over the next two years.”

BHPB bid for Rio – FMG tipped as next takeover target

Australian sector bankers and analysts told dealReporter that Fortescue Metals Group is likely to emerge as the next potential takeover target in any iron ore sector consolidation following a BHP and Rio Tinto tie up and also other iron ore juniors could also get snapped up in any wave of sector consolidation.

According to Mr James Wilson, a resource analyst at DJ Carmichael, with the BHP Rio merger, the number of players in the iron ore sector will reduce significantly. Mr Wilson said that “In such a scenario Fortescue Metals is likely to emerge as the next takeover candidate. Fortescue has about 2.5 billion tonnes of resources and once a company gains control over Fortescue, a potential bidder could gain control over most of the infrastructure facilities at Pilbara.”

Mr Wilson said that any merger provides synergies of cost and other possible takeover candidates could be companies such as Atlas Iron, BC Iron and Red Hill Iron.

RBCT coal line running at 90% capacity -Transnet

Reuters reported that rail service on South Africa's Richard's Bay Coal Terminal is running at 90% after a power outage earlier this week disrupted freight traffic.

Mr Sandile Simelane a spokesman of Transnet Freight Rail told Reuters that "We are currently running at 90% capacity.”

Transnet Freight Rail said that lightning had struck a transformer supplying power to the line in the east of the country on Thursday, slowing freight to RBCT. It said that "Due to the severity of the lightning strike, the last transformer will be operational in 14 days time. By then the line will be operating at 1.52 million tonnes of normal capacity.”

Transnet said that within a week the first transformer should be up and running and increase service on the 80 kilometer long stretch between Vryheid and Piet Retief to 95% of normal capacity.

TKC Steel to export iron ore from Zambon and Rizal mines

It is reported that TKC Steel Corp intends to export iron ore, which will be extracted from its two prospective mining sites in the provinces of Zamboanga del Sur in Mindanao and Rizal in Luzon in Philippines.

Mr Alex Ariza chairman of TKC Steel said that "We are looking at exporting iron ore. We are going to use about 600,000 tonnes a year and we hope to export the excess. The market is generally retail."

Mr Anthony Dizon president of TKC Steel said that the country has been exporting about 1 million tonnes of iron ore per year to overseas markets, largely to China.

He added that TKC Steel has formed a JV with Mikro Tech Inc and Karangalan Resources Mining Corp for the drilling of some 50 million tonnes of iron ore reserves in Zamboanga. He further added that it also recently completed talks with a local cooperative in Rizal, the Kooperatiba ng mga Katutubo Remontado at Dumagat ng Sta. Ines, for the exploration of a property in the province that was estimated to contain 30 million tonnes of iron ore deposits.

TKC Steel entered into both mining projects to supply iron ore as raw material for its blast furnace and support its steel manufacturing business. Its blast furnace is expected to double its production of iron billets from 300,000 metric tons to 600,000 tonnes annually by the last quarter of 2008.

Zimbabwe government seeks 25% stakes in mining firm

It is reported that Zimbabwe's government recently published a draft bill forcing mining firms to transfer majority shareholdings to local owners, including giving the Zimbabwe government a free 25% stake.

The mines and minerals amendment bill is expected to be presented to parliament and to be approved before the end of the year, and follows the passing of a general bill giving 51% stakes in foreign owned firms to locals.

Mr Douglas Verden CEO of Zimbabwe Chamber of Mines said that the industry body is still going through the bill, but that it did not look very helpful to the mining industry. He added that "It would appear that there is a freebie of 25% in energy supply materials miners and miners of precious metals and stones. They call the 25% a noncontributory takeover by government."

Mr Verden said that "We are busy looking at it at the chamber at this minute and then we'll be deciding on what action we'll be taking. He added that the chamber would likely come up with a plan of action in a few days. Maybe we should take some different type of action, I am not certain at this stage."

Japanese investors seek steel and auto investments in Thailand

It is reported that several major Japanese investors are keen to invest in high quality upstream steel and fuel saving eco cars in Thailand.

Mr Kosit Panpiemras deputy prime minister of Thailand after meeting with senior executives of Nissan and the Nippon Steel Corp said that they Nippon has expressed interest on investing in steel business in Thailand while Nissan queried on promotional incentives given by the Thai government on eco car industry.

Mr Kosit said that "Regarding eco cars, there're at least two manufacturers with a combined investment of about THB 15 billion wanting to invest. Investment in upstream steel will have a total value of more than THB 100 billion. Investment in both sectors will be on a long term basis and investors aren't worried about short term risks such as rising oil prices."

Mr Kosit said that the Thai government run National Economic and Social Development Board had been assigned to conduct a study on investment in upstream steel within the Southern Seaboard in order to prevent problems from arising like the one at Mab Ta Phut Industrial Estate in the eastern province of Rayong. He said that "Good project management and public participation should be considered to avoid protest like Mab Ta Phut.3 southern provinces Chumphon, Nakhon Si Thammarat and Surat Thani are presently considered as the most appropriate places for constructing upstream plants.”

Electricity from nuclear plants down in 21 countries

According to the study commissioned by the European Parliament's Green Party, the amount of electricity that comes from nuclear power has decreased over the last five years in most of the countries operating nuclear plants.

The decreases were found in 21 of the 31 countries with nuclear power stations and the number of nuclear reactors dropped by 5 to 439 since 2003. The research itself was carried out by two European experts on nuclear energy.

The study explained that since 1988, when the number of nuclear reactors in Europe peaked, aging nuclear plants have been closing and fewer new stations have been built due to strong competition from natural gas and other forms of renewable energy and an insufficient manufacturing capacity.

The study said that altogether around 16% of electricity generated worldwide comes from nuclear power. France had the highest amount of nuclear generated power in its electricity mix in 2006, 78.1% followed by Lithuania, Slovakia and Belgium, where the share was also higher than 50%. The US had the highest number of nuclear reactors at 104. They provided 19.4% of the country's electricity.

The EU's 27 nations are divided over nuclear power a technology that creates little CO2 but a lot of radioactive waste. France is the most vocal advocate of atomic energy, arguing it could play a major role in replacing coal or oil fired power plants to help meet the EU's target of generating a fifth of its energy from CO2 free power by 2020.

Results of IISI’s Virtual Steelmaking Challenge 2007

It is reported that students from South Korea POSTECH have won the steeluniversity.org Virtual Steelmaking Challenge. The team of Mr Hyunsoo Kim, Mr Sangmin Lee and Mr Daehee Woo beat hundreds of other competitors by posting a result of USD 26.07 overall cost per tonne.

The winning team in the Industry category was Mr Zhang Wen and Mr Zhao Gang from China’s Ansteel who were in fifth place overall.

The 2007 competition challenged entrants to refine and cast a beverage can grade of steel, specially introduced for the event. It said that 440 university and steel industry participants from 26 countries took part, making a total of almost 13,000 attempts over the 24 hour period of the Challenge.

The Virtual Steelmaking Challenge is IISI's annual competition for students and steel industry employees. It uses the steelmaking simulations on IISI's steeluniversity.org website.

BHPB bid for Rio –Could shake up Canadian diamond industry

Reuters reported that BHP Billiton's proposed takeover of Rio Tinto may trigger a shake up of the diamond industry in northern Canada as it would allow BHP to add Rio's 60% stake in the Diavik diamond mine in Canada's Northwest Territories, which yielded nearly 10 million carats in 2006 in addition to its own Ekati mine, which produces about 4 million carats a year.

Both BHP and Rio have at times been rumored to be eager to get out of the diamond mines. These assets are widely seen as non core for both companies, which focus on base metals, attempts to streamline the companies or sell assets to raise funds could see the mines come on the market. The report cited Mr David Whetham fund manager at Scotia Cassels as saying that "That is an obvious place where if they wanted to sell something, they could.”

RWE to invest EUR 1 billion annually in renewable from 2008

It is reported that Germany's largest power producer RWE plans to invest at least EUR 1 billion annually from 2008 in renewable energy, mainly in wind power, as it seeks to reduce emissions of carbon dioxide.

Mr Juergen Grossman CEO of RWE AG during the company's presentation of its new renewable energy division said that “We will massively expand power generation on the basis of renewable energies.” He added that the EUR 1 billion is rather a lower limit to the company's future investments in renewable.

Mr Grossman said that its new division, named RWE Innogy will start at the beginning of 2008 with an initial generation capacity of some 1,500 MW and it will be headed by Mr Fritz Vahrenholt, as previously speculated in German media reports. He added that “The unit is important for low carbon supply in Germany and Europe, for our public acceptance and not least for the economic future and growth strategy of our group."

The renewable unit will have the same profitability requirements as the other operations in the group and will focus on onshore and offshore wind power projects. Mr Grossmann said that "The business model includes the planning, construction and operation of plants for renewable power generation and energy recovery."

RWE is Europe's biggest emitter of carbon dioxide, which causes global warming, and is facing increasing costs for its emissions as governments cut the supply of permits allowing companies to emit the greenhouse gas.

Japanese ferrous scrap export prices down

JMB reported that Japanese ferrous scrap export price was JPY 35,414 per tonne from Tokyo bay for H2 grade for November 2007 shipment at monthly tender held by Kanto Tetsugen which was JPY 1,736 lower than previous month and represented drops for 2 months in a row.

Tokyo Steel Manufacturing reduced the scrap purchase price by JPY 500 per tonne at all plants and decreased the H2 purchase price to JPY 37,500 per tonne at Utsunomiya plant. Japanese ferrous scrap market price decreases with lower offshore demand.

Gladstone Pacific finds New Caledonia drilling results encouraging

Gladstone Pacific Nickel Ltd announced that drill results in New Caledonia are encouraging and confirm historical data based on which the company has set an exploration target of 50 million tonnes of laterite ore.

Gladstone Pacific in a statement said the exploration target contains between 1.1 billion lbs to 1.3 billion lbs of nickel or between 500,000 tonnes to 600,000 tonnes and between 110 million lbs to 130 million lbs of cobalt or about 50,000 to 60,000 tonnes. It added that a further 8,000 meters of drilling is planned for early 2008.

Gladstone Pacific Nickel Limited is an Australian mining development company presently undertaking an Integrated Definitive Feasibility Study for the Gladstone Nickel Project.

Siemens to supply turbines for renewable energy projects in Spain

Siemens Power Generation announced that it has received major orders from Spain’s ACS to supply wind turbines as well as key equipment for solar thermal power plants. ACS, one of the largest construction companies in Spain, has ordered 50 wind turbines with a capacity of 2.3 MW each to be erected in four wind farms in Andalucía.

ACS has also ordered an industrial steam turbine for the solar thermal power plant Extresol I to be built in southern Spain. Additionally, Siemens will supply steam turbines to two further solar thermal power plants in Spain. Customers are the Spanish energy company Iberdrola and Solel Solar Systems of Israel. The total volume of all four orders is more than EUR 170 million.

Siemens will supply 50 of its 2.3 MW wind turbines to four projects in Southern Spain. The scope of the contract with ACS includes the supply, transport and the installation of all 50 turbines. Furthermore, a five year service contract is part of the order. Delivery of the wind turbines from Brande in Denmark is scheduled to begin in February, 2008.

Mr Randy Zwirn member of the PG Group executive management said that “Siemens has become a leading supplier of innovative renewable energy technology. Our wind power business is growing rapidly and we are the leading supplier of steam turbines for solar thermal power plants. The new orders from Spain emphasize our competence in delivering climate compatible, reliable and cost efficient energy solutions for the world’s future power needs.”

Spain’s role as one of the most important markets for renewable energy is steadily growing. With more than 11,600 MW of wind power capacity installed at the end of 2006, Spain was the third largest wind power market in the world, only behind Germany and the USA. With an official government target of 20,000 MW in place, the installed wind energy capacity in Spain is expected to grow with an average of more than 2,000 MW in the upcoming years.

Besides being a leading country in wind power, Spain is also pioneering the development of solar-thermal power plants. Siemens had previously received orders for two SST-700 steam turbines for two solar-thermal power plants Andasol 1 and 2 near the Almerian coast of Andalusia. When the plants come on-line 2008 and 2009 they will be the largest solar power plants in the world with a collector area of 512,000 square meters and a capacity of 50 MW, each. The Andasol projects, both being built by Spain’s ASC/Cobra group, will also be equipped with thermal salt storage, allowing the plants to run 24 hours a day during the peak summer period.

Venture Production completes new GKA pipe line

It is reported that Venture Production plc's new North Sea export pipeline linking the Kittiwake platform to the Forties Pipeline System has been successfully completed and is now fully operational. The new 10 inch, 33 kilometer pipeline has the capacity to flow up to 40,000 barrels of oil per day and will process production from all the fields in the Greater Kittiwake Area, a central North Sea oil production hub operated and 50% owned by Venture.

Replacing the existing shuttle tanker and loading buoy system for oil export, the new pipeline is expected to substantially improve operational uptime, lower overall operating costs and allow GKA field life to be extended. The line links the Kittiwake platform to BP's Unity platform. The decision to invest in the new North Sea infrastructure reflects Venture's confidence that the GKA fields will continue to produce economic volumes for at least another decade.

These volumes include current production from the existing Kittiwake, Mallard, Gadwall and Goosander fields as well as potential production from the Grouse field, where an appraisal has been successfully drilled. In addition, as yet undeveloped discoveries including the Christian and Bligh fields may also benefit from the new export route.

Mr Mike Wagstaff CEO of Venture said that "It was delivered on time and, despite some very difficult offshore operating conditions due to the weather this summer, close to the original budget. This new pipeline is a major step forward in the optimization of performance from the GKA fields. Since taking over operations in late 2003, through a series of successful rejuvenation projects and new wells we have lifted gross production potential from around 5,000 bopd to over 30,000 bopd today.”

He added that "However, up until now, unavoidable restrictions as a result of using shuttle tankers and the old seabed storage system have held us back from being able to maximize production from these fields. We can now press ahead with the further development of the Kittiwake area with increased confidence and I look forward to seeing production from this hub continuing well beyond 2015."

AdPhos Steel receives EUR 5 million order

AdPhos Steel GmbH, a subsidiary company of Advanced Photonics Technologies AG, Bruckmühl announced that it has received an order with a value of more than EUR 5 million for a NIR system for the steel industry through its partner in Italy.

Together with Globus, AdPhos Steel will deliver a fully NIR based organic paint section to a European customer. The scope of supply consists of the complete thermal process part with the steel structure and will be provided as a turnkey delivery. The negotiations have been completed and the order will be confirmed in the coming days.

The NIR technology it is possible to integrate an organic paint section to apply chemcoating, primer as well as finish coating in a high performance and high speed galvanizing line. The unique dynamic systems capabilities allow on demand organic coating with maximum production speed of the galvanizing process of up to 180 meter per minute and reduced energy consumption.

Lounor Exploration buys nickel claims in Quebec

It is reported that Lounor Exploration Inc has bought nine mineral claims in the Rouyn Noranda mining distinct in Quebec by issuing 100,000 common shares for a 100 per interest or about USD 19,000.

Lounor, which has mineral holdings in Ontario and Quebec said that the new property is near a large low grade nickel deposit that was once owned by Dumont Nickel Corporation and now by Royal Nickel Inc. Royal Nickel is currently conducting a 10,000 meter drilling program on the property.

Lounor in a statement said that it plans to start a two phase exploration program next week. The first phase will determine the location of the structural targets and the second phase will consist of diamond drilling the identified target or targets.

BIDV financial arm to take stake in Asia Huu Lien’s steel mill

Vietnam Economic Times reported that The Bank for Investment and Development of Viet Nam’s Financial Investment Joint Stock Company has signed a contract on November 16 to become a strategic partner of the Ho Chi Minh City based Asia Huu Lien Joint Stock Company. Under the contract, BFC will acquire 7.5% of the steel firm, whose chartered capital stands at VND 200 billion (USD 12.2 million).

Mr Vu Truong An deputy GD said that “BFC is a professional financial investor working in areas including consultancy on listing on the stock exchange, real estate business and investment portfolios. Therefore, its expertise will benefit our development plans.”

The capacity of the existing factory is 6,000 tonnes per month and is expected to rise to 10,000 tonnes so that the company can increase its market share in Viet Nam to 25% in five years, from the current 10%.

Mr Tran Tuan Nghiep GM said that procedures will begin early 2008 for his company to get on the board of the Ho Chi Minh City Stock Exchange by year’s end. After listing, it would double its chartered capital to VND 400 billion. This year the company hopes to earn VND 25 billion in net profit up by 10% YoY. He added that the company is also negotiating with a foreign finance firm that would like to become a major shareholder.

Asia Huu Lien also plans to develop a 100 hectare industrial park in Long Thanh district in Dong Nai Province, with an estimated investment of VND 100 billion. Some space in the park will be allocated for building a new factory to replace its current factory in Ho Chi Minh City’s Binh Tan District. A residential project will be developed at its site in Binh Tan, which covers around 5 hectare. Both the IP and residential projects are slated to begin next year.

ABB to promote remote mine monitoring technology in Chile

BNamericas reported that industrial equipment and systems provider ABB plans to focus in 2008 on optimizing remote monitoring of its integrated processes for the mining industry.

Mr Enrique Daniel Rohde manager of ABB Chile told BNamericas that the company aims to promote automation equipment and processes for mining such as the PiiTD system used at Chilean state owned copper company Codelco's Andina division. He added that the PiiTD system is an integrated information platform for decision making in real time, which ABB is also working to implement at Brazilian integrated mining and metals company CVRD.

Mr Rodhe added he expects Chile's mining industry in 2008 to continue feeling the crunch from scarce energy and water and, therefore, said ABB is placing a high emphasis on solutions within these two areas.

ABB Chile provides equipment and services for Anglo Australian BHP Billiton's Spence copper mine in region II as well as Antofagasta Minerals' Los Pelambres mine in region IV. The company also has agreements to supply transformers for Codelco's Gaby project and automation systems for Antofagasta Minerals' Esperanza project.

Sabic plans to triple steel output in Middle East by 2020

Reuters reported that Saudi Basic Industries Corp will almost triple steel output by 2020 but is not seeking steel acquisitions beyond its home region, despite a global consolidation wave.

Mr Mutlaq Al Morished CFO of SABIC in Hong Kong said that
"In every business we have, we are global. But in steel, we are really a regional company and we will stay in our region. We intend to grow in steel. We make about 6 million tonnes now and our strategy is to be making around 15 million tonnes to 17 million tonnes by 2020."

Pakistan looks for speedy growth of engineering sector

Mr Salmaan Taseer federal minister for industries, production & special initiatives of Pakistan said that the engineering sector is important for the development of Pakistan and that the process of development in this sector therefore has to be accelerated in order to contribute towards the economic progress of the country.

Mr Taseer, during a visit to the Engineering Development Board, met the Engineering Development Board officials and was briefed about its working, achievements and future plans.

Mr Taseer emphasized on the importance of steel in the development of the engineering sector and said that Pakistan needed more steel mills in order to meet the requirement for raw material. He said that the ministry of industries, production & special initiatives was preparing comprehensive industrial policy for rapid industrialization of Pakistan. He invited EDB to provide necessary inputs on engineering sector for it.

Yemen to build USD 15 billion nuclear power plant

Saba news agency reported that a delegation of American and Canadian investors in the field of nuclear energy left Yemen after signing an initial agreement with the Yemeni government to fund a nuclear power plant at an estimated cost USD 15 billion.

The agreement with the US and Canadian firms envisages the construction of 5 nuclear reactors over 10 years to produce nuclear energy. The firms would carry out feasibility studies for building the plant with a total production capacity of 5,000 MW.

Mr Mustafa Bahran energy & electricity minister of Yemen said that the contract was inked with the Houston based Powered Corporation. He added that "The overall cost of the project is estimated at USD 15 billion. It features the construction of 5 nuclear reactors over 10 years. Powered Corporation will oversee efforts to secure the financing of the project."

It is noted that Yemen is looking to build nuclear plant to generate electricity and to desalinate sea water in order to meet the needs of its growing urban population of electrification and water and boost the country's industrial development. It also hopes to diversify and expand its energy resources due to declining oil production.

Iran lifts restrictions on imports from Czech Republic

The Czech Embassy's trade attaché in Iran recently said that Iran has lifted restrictions on imports from the Czech Republic imposed 4 years ago.

It is noted that in 2003, in reaction to anti Iran broadcasts from Prague of a US run radio, imports from the Czech Republic to Iran were conditioned on obtaining permits from the Iranian foreign ministry.

Subsequent to this restriction, Czech exporters faced problems regarding their commercial transactions with Iran, especially in the form of long delays to obtain permits, although the flow of exports from the republic never really stopped. In many cases, Czech exporters had to go through third parties.

In 2006, the value of trade exchanges between Iran and Czech, which had amounted to USD 140 million in 2005, dropped to a mere USD 45 million.

Machine tools sector in GCC to see a boom

It is reported that GCC countries are investing heavily in the expansion of their industrial manufacturing sectors, with industry experts forecasting a huge boom in the region’s machine tools market.

Mr Trevor Punt group exhibition director of IIR Middle East said that “According to research outfit Gobi International the growth in demand for machine tools in the GCC is forecast to rise from the current USD 3.1 billion to USD 4.3 billion by 2012 up by 39%.”

The forecast also highlights that the GCC countries of Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates already account for 41% of the entire Middle East and North African region machine tools market. Their rate of growth is also predicted to continue racing ahead of other regional and, indeed, global forecasts.”

Pakistan’s cement exports and local demand expected to surge

It is reported that Pakistan’s cement exports and domestic demand would continue to surge in the next quarter of the current fiscal year. Last year, cement exports recorded an increase of 112% YoY and domestic demand rose by 24% YoY.

Mr Badruddin Fakhri MD of Galadari Cement said that “Cement exports this year will surge more than 2 fold compared to last year.”

Mr Babar Bashir Nawaz CEO of Attock Cement said that “The future of the cement industry is bright. Cement exports to Afghanistan may remain the same as last year at around 1.7 million tonnes however, exports to the Middle East and India will increase to a large extent. We have reduced the prices of our products to cut short the difference between prices in North and South.” He added that cement exports would demonstrate the same increase in the next quarter.”

Mr Wali Bhai Patel president of Karachi Cement Dealers Action Committee said that “Cement dealers have been earning more in supplying Punjab’s cement as manufacturer in the north offer incentives to the dealers in Sindh and keep their prices low as compare to the prices in Sindh.” He added that cement produced in Sindh is being sold for PKR 215 to PKR 220 while the cement produced in Punjab is available at PKR 245 to PKR 250 and this price difference must be curtailed.

Pakistani and Iranian trade bodies ink cooperation pact

It is reported that Karachi Chamber of Commerce & Industry and Iran's Chamber of Commerce Industry & Mines of Kermanshah have signed a MoU. Mr Shamin Ahmed Shamsi president of KCCI and Mr Keyvan Kashefi president of CCIMK have signed the MoU on behalf of their respective organisations. The two chambers have agreed to organize a joint meeting once a year in Pakistan or in Iran.

Following are salient features of the MoU:

1) Whereas, both the chambers agreed that in view of the need to build a dependable, pragmatic, and advantageous relationship between both the countries, they desire to initiate the establishment of friendly and cordial relationship between the two chambers through an increased co operation mode among the industrialists, businessmen and entrepreneurs of the two organizations.

2) Whereas both the chambers agreed that there should be an enhanced growth in interaction between them and that this memorandum should be mutually favorable to both.

3) Whereas both the chambers agreed that it is imperative that there should be maximum dissemination of information that could lead to further increase in bilateral trade between the industrialists, businessmen and entrepreneurs of the two chambers.

4) Whereas both the chambers agreed that coordinated efforts be made to promote JVs, initiate partnership, provide technical expertise, introduce licensing possibilities, and arrange visits of industrialists, businessmen and entrepreneurs of the two organizations, in co operation with boards of investment of both the countries and the respective diplomatic entities.

5) Whereas both the chambers agreed that this initiative is intended to be a trailblazer and they acknowledged the importance of mutual co-operation between the two chambers.

6) It is agreed that the 2 chambers will place a list of needs and requirements also with capabilities of their province and regions at the disposal of each other and the two mentioned chambers further convey in specialized manner for information of businessmen and producers.

7) Establishment of dispute settlement commission and arbitration for elimination of difficulties and differences of traders and businessmen of both the countries.

Both the chambers agreed that strategic and concrete proposals, suggestions, and recommendations that are consequential and significant in the acceleration of bilateral relations of the two countries need to be formulated to achieve as follows:
1. Image building to dispel negative perception
2. Safeguard investments and bilateral activities among members of both organizations
3. Attraction of investment and trade opportunities
4. Intensive efforts to remove bureaucratic bottlenecks and inconsistent government policies
5. Lobby for a mutually beneficial free trade agreement between both the countries
6. Organize and maintain a database to identify and promote products and services
7. Provide information on pool of human resources available in each organization
8. Influence the initiation of investment protection, taxation, and other treaties
9. Prepare and maintain information on market, cultural, religious, and national factors
10. Initiate measures to enhance mutual trust, patience, and transparency
Promote joint promotions, marketing and ventures.

Iran’s foreign investment in 2007 up by 300% YoY

Mehr News Agency reported that foreign investment in Iran has increased by 300% YoY to USD 30 billion in the first half of the current Iranian calendar year as against USD 10.5 billion. Out of the total USD 21 billion belongs to the industry and mine sectors.

Mr Mohsen Shaterzadeh deputy minister of industries & mines of Iran said that “Out of the figure, the industry sector has the lion’s share 80%.”

Sugar plant to be set up at Port of Sohar in Oman

Khaleej Times reported that Al Hafri Sugar Refinery Company will set up an ultra modern sugar refinery in the Port of Sohar in Oman's Batinah region in about 2 years' time. The project is estimated to cost around OMR 80 million.

Agreements for establishing the project were signed by Mr Sayyid Asaad on behalf of the promoters, while Mr Maqbool bin Ali Sultan minister of commerce and industry & chairman of Sohar Industrial Port Company, signed for the Port of Sohar. Mr Sultan said that "It will create economies of scale which will make the use of the port more economic for all present and future users and investors."

With a capacity of 660,000 tonnes of white sugar per year, the plant, that will be based on France's Cordonnier technology, is expected to start production by March 2010. Molasses, the raw material, will be mainly imported from Brazil. The integrated refinery complex, construction on which is due to start soon, will come up on an area of 15 hectares within the port.

The refinery is designed to meet growing local and regional demand, but Europe and Africa will be targeted for the surplus product. The Sultanate currently imports all its requirements of sugar, estimated at about 120,000 tonnes annually.

ProLogis to develop new facility for Aramex in Dubai

Distribution facilities developer ProLogis has announced that it will develop its first distribution center in the Middle East and has signed an agreement to design and build a 798,000 square foot facility in Dubai for Aramex.

Aramex's new facility is being developed in Dubai Logistics City and the future Dubai World Central International Airport. Construction on the distribution center has already commenced and is scheduled for completion in the second half of 2008.

Dubai Logistics City is the first phase of a government backed, 140 square kilometer and master planned urban community called Dubai World Central. The USD 33 billion project, which is under construction 40 kilometers from the existing Dubai International Airport, will eventually comprise one of the world's largest, integrated multi modal logistics platforms, including Dubai Logistics City. When completed, Dubai Logistics City will operate as a global logistics hub serving the Middle East, India, Africa and the Common Wealth of Independent States.

Mr Jeff Schwartz chairman & CEO of ProLogis said that "We have been investigating business opportunities in this region for over a year and believe that this new transaction within DLC provides an excellent opportunity for ProLogis to begin its Middle Eastern operations. Dubai, which benefits from a centralized location and immediate access to major modes of transport, is quickly becoming a gateway to the Middle East, with DLC set to serve as one of the largest supply chain communities in the world. Having a presence in this rapidly growing global logistics hub will enable us to become part of this burgeoning economic environment, and we are confident continued infrastructure development will drive further demand for our modern distribution space."

ProLogis owns, manages and develops distribution facilities, with operations in 20 countries across North America, Europe and Asia. It has USD 34.4 billion of assets owned, managed and under development, comprising 483 million square feet in 2,669 properties. ProLogis' customers include manufacturers, retailers, transportation companies, third party logistics providers and other enterprises with large scale distribution needs. It employs more than 1,300 people worldwide.

KGL Passenger wins Sharjah transport tender

An ambitious plan to establish a modern public transport system in Sharjah was unveiled by KGL Passenger Transport Services of Kuwait which has won the Sharjah Public Transport Corporation tender for the project.

Mr Fahad Al Awadhi GM of KGL Passenger Transport Services, while addressing signing ceremony, said that the project would cover 19 service routes, 9 service stations, and 142 specially equipped buses ultimately carrying 80,000 passengers per day.

Mr Awadhi said that “This project aims at operating a wide bus transportation network in Sharjah that will cope with the emirate's large growth in population over the past few years. It seeks to reduce the traffic jams and develop a common transportation service for everyone to use and is a development of great importance to Sharjah's status as an emirate that offers first-class public transport for residents and tourists alike. Ever since our company was eligible to enter the bidding, we created different consultation cells to study the present and future transport demands in Sharjah, especially for inner city transport.”

He added that “We will launch at the end of the first quarter of 2008 with 3 main routes, to be followed by the completion of the rest of the routes by the end of the first year. The plan will be integrated in a phased manner that accommodates the nature of the roads, with the purpose of raising its efficiency so as to achieve the maximum benefits to traffic control and ease of movement. This starts with the project management team in Kuwait, which will run things according to the vision and desired targets set for this project. Another group will be recruited and trained to have similar goals. Here I would like to point out the fact that our company believes that no one holds the best interest of this country more than its citizens and that is why our company's main objective is to focus on Emiratisation.”

Sharjah Public Transport Corporation was established in November 2002 as the sole authority to determine the policies for all public transport services in the emirate. It has exclusive rights to regulate, control, and franchise all public transport services including taxis, intra emirate and inter-emirates mass transport, and city bus services. Sharjah Transport had issued a tender for the provision of bus services in Sharjah, with international and local companies competing for the rights, with the award being made in favor of KGL Passenger Transport Services for an 8 year franchise period.

KGL Passenger Transport Services is a multi modal passenger transportation solution provider for the public, private and commercial sectors in Kuwait and abroad. It successfully operates overland transportation throughout the MENA region including Hajj and Umrah, military and commercial bus services, taxi and limousine services, as well as public and school transport.

Chinese economy to grow by 11.5% in 2007

Chinese Premier Mr Wen Jiabao recently announced that said China's economy is expected to grow 11.5%in 2007.

Mr Wen on a four day official visit to Singapore to attend a series of Association of Southeast Asian Nations meetings made the forecast when meeting embassy staff and representatives of Chinese entrepreneurs and students. He noted that China has enjoyed 9%YoY growth for 30 consecutive years while growth surpassed 10% in the past five years.

But he stressed that the government must prevent the economy from overheating and makes sure that structural price rises do not move toward high inflation. He said "Only by achieving that can we enable the economy to grow in a stable and healthy manner."

Air pollution costs 3.8% of China's GDP

The World Bank has warned that air pollution is costing China 3.8% of its gross domestic product, causing more diseases and claiming more lives. It has put the combined health and non health cost of outdoor air and water pollution for China's economy at around USD 100 billion a year or about 5.8% of the country's GDP.

Mr David Dollar director of the World Bank country for China and Mongolia said air pollution poses higher costs than water pollution. Mr Dollar quoting a World Bank report issued following a joint assessment with China's State Environmental Protection Administration said air pollution, especially in large cities, is leading to higher incidence of lung diseases, including cancer, respiratory system problems and therefore higher levels of work and school absenteeism, He pointed to particulate matter, which measures less than 10 microns in diameter as a major threat to health.

He said at a forum on China's investment environment in Chengdu, capital of southwest China's Sichuan Province that the density of particulate matter in north China averages 112 microgram and that in the south, 88 microgram.

As part of the joint study, the World Bank and SEPA also conducted a survey in the southwestern Chongqing Municipality, one of the worst polluted Chinese regions, and the commercial center Shanghai, and found many citizens are willing to pay for reduced health risks associated with environmental pollution.

Chinese coke exports falls modestly in October 2007

Latest statistics show that China exported 1.42 million tonnes of coke in October 2007 down some 40,000 tonnes or 2.7%MoM. Exports during January to October 2007 totaled 13.15 million tonnes valued at USD2.47465 billion up by 9.4% and 50.1% respectively.

As China raised export tariff on coke since June 1st 2007 exports maintained at some 900,000 tonnes in June and July 2007 yet went back to a high level thereafter.

Market rumor goes around that the government will pull up export tariff on coke to 25% arousing panic among exporters along with limited export quota left. As a result, exporters rush for exports prior to the export tariff adjustment.

(Sourced from MySteel.net)

Taigang starts producing TTS443 stainless steel

It is reported that China's top stainless steel maker Taigang has first taped TTS443 material, which boasts outstanding comprehensive performance to replace 304 in wide applications.

Taigang began researching since last year with a view of tapping nickel free cheaper stainless steel. By great efforts and repeatedly improving ferrite stainless' capabilities, its TTS443 was given good surface quality, mechanical, processing and welding capabilities that are equivalent to 304 steel. Trial production of the new material initiated in May 2007 and by October 2007 where 8727 tonnes was generated.

TTS443 can be used in construction, decoration, household appliance and automobile parts etc as an ideal substitute of 304 steel as it has high corrosion resistance, shaping, welding and high temperature properties.

(Sourced from MySteel.net)

TISCO keeps December plate prices unchanged

It is reported that Tianyuan Iron & Steel Co issued medium price policy for December on November 20th 2007 and the price remains unchanged as per earlier price change information on October 18th 2007.

Now the EXW price of Q23514-20mm medium plate is CNY 3,960 per tonne excluding 17% VAT and the policies is carried out since November 20th 2007.

Yuan hits new high against US dollar

According to the Chinese Foreign Exchange Trading System China's currency, the yuan hit a new high against the US dollar recently.

The central parity rate of the yuan also known as Renminbi, stood at CNY 7.4119 to one USD recently gaining 31 basis points from recent reference rate of 7.4150.

Yunnan Tin’s update on its growth plans

Mr Xiao Jianming chairman of Yunnan Tin Company said its company expects to produce 60,000 tonnes of tin this year, but will hold back on further increases in production due to concerns about raw material supplies and prices.

He said that “We need to secure supplies of raw materials. We also want to control output. If we increase output, world prices will fall.”

Mr Xiao said the company will produce 60,000 tonnes of refined tin in 2007 including about 7,000 tonnes from its JV plant in Singapore and 53,000 tonnes from plants in Yunnan and Hunan provinces in China. In 2006 combined total production from the Chinese and Singapore operations amounted to 52,399 tonnes. The firm produced about 70% of its ore.

Yunnan Tin Company says it is currently carrying out trial production at a new 18,000 tonnes per year smelter in Indonesia which is to supply crude tin for refining in Singapore.

SHFE to raise zinc daily movement limit and margins

Interfax-China reported that the Shanghai Futures Exchange will lift the daily movement limit of some zinc contracts from 6% to 13% and increase contract margins from 9% to 14%.

Shanghai Futures Exchange zinc contracts for delivery in January and February 2008 have fallen by their daily limit for the last three consecutive trading days recently and trading was finally suspended today. As a result, the daily movement limits of the two contracts will be lifted to 13% and the trading margin increased to 14% as required by SHFE zinc contract trading rules. Meanwhile, zinc contracts for delivery in March, April, May and July all fell by their 6% daily movement limit recently.

The benchmark January 2008 zinc contract plunged to a new low yesterday to settle at CNY 18,205 per tonne down 37% since its SHFE debut on March 26th 2007 while the benchmark three month zinc price on the London Metal Exchange fell to USD 2,319.50 per tonne recently.

Mr Pang Ying an analyst from Shenzhen based Rongtop Trade Co Ltd., a futures and physical trading company said "Zinc oversupply is a major concern for the market, and the fundamentals show no sign of coming out in favor of price. Moreover, current price levels are dangerously close to the production costs of zinc smelters.

However, relatively high zinc concentrate treatment charges supplied by international miners are enabling most domestic zinc smelters to maintain normal production levels.

China produced 341,900 tonnes of refined zinc in October 2007 up by 5.26% from the previous month, while the country produced 3.04 million tonnes of refined zinc in the first 10 months of this year, up 19.1%YoY.

China’s province wise crude steel production in January to October 2007

It is reported that China's crude steel in January to October output was 42.922 million tonnes up by 13.5%YoY.

The province crude steel production is as under

In million tonnes

(Sourced from MySteel.net)

Ma’gang produces more than 1 million tonnes of steel during 9 months

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

Magang was established in May 2006, after the assets of former Hefei Iron and Steel were reformed.

China feared grabbing up resources in North Korea

It is reported in 2006 China's Zhaoyuan Gold signed a 25 year contract with North Korea for a 50% share of operational rights to North Korea's largest copper mine, the Hyesan Youth Copper Mine in Yanggang Province. The Chinese firm invested EUR 8 million.

In 2005, the Department of Commerce of China's Jilin Province bought a 50 year contract for mining rights to North Korea's largest iron mine, Musan Iron Mine in North Hamgyong Province for CNY 7 billion. The deal gives China the right to mine and haul 10 million tonnes of iron ore per year from Musan.

Many experts are raising concerns about China's recent attempts to sweep up North Korea's mineral resources. They are stressing the importance of getting involved in the development of mineral resources in the North at a time when international prices of raw materials are soaring.

According to a report released recently by the Korea Chamber of Commerce and Industry, China imported some USD 274.53 million in mineral resources from North Korea last year, concentrating 70% of its investment in the North on resource development. By contrast, South Korea imported just USD 59.73 million worth of resources from the North, a mere 21.8% of China's level.

South Korea has been hesitant and unfocused in this area, concentrating instead on wrestling with the North Korean nuclear issue and studying the profitability of development in the North. China meanwhile has been working to snap up the nation's underground deposits.

Panzhihua adds new members in rail heat treatment line

It is reported that the material institute of Panzhihua Iron and Steel, after the completion of SS136RE online heat treatment rail tests, has also completed SS115RE online trial batch Production of heat treatment rail, in which the performance of both products met the standard requirements.

Pangang online heat treatment line for rail has added new members.

The success of SS115RE online heat treatment rail development, not only broaden the export areas of rail for Pangang, but also increase Panzhihua Iron and Steel Rail's international reputation.

Chinese investments in high energy consumption & pollution industries still growing

It is reported that from January to October 2007, investments in Chinese construction material, petroleum & chemistry and chemical industry rose by 53.5%, 46.9% and 38.1% separately and nonferrous metals and steel & iron rose by 33.4% and 14.5% separately.

In the YoY 13.9% increase of the investment growth of fixed assets in October 2007 in urban areas, industries mentioned above pushed 5%.

Coszo expands its casting facilities

It is reported that Ningbo COSZO Industry & Trading Co Ltd has expanded its production lines and relocated the office to the factory this September 2007 to increases efficiency in service for customers.

COSZO plans to reach annual production capacity of 4,000 tonnes effectively. Its casting factory is equipped with medium frequency induction furnace, coal furnace, sand blaster machine, wax injection machine. These facilities support COSZO's casting process including sand casting, die casting and alloy casting, gravity casting. COSZO's machining center occupied 3,000 square meters of the floor, it offers CNC machining, turning, milling, filling, plating, heat treatment, and finishing process, which is an integrated service for wide range OEM casting requirements.

Mr Andy Qiu GM of COSZO said that “We understand time is a key element in business, therefore, COSZO makes prompt customer respond within twenty four hours as possible.” He added that COSZO accepts different quantity of order it makes goods delivery within thirty days for casting products and fifteen days for machining one on average. In addition to take good advantage of its location in Ningbo, the second biggest container port of China, COSZO definitely reduces the time and cost of shipment for customers.

Mr Qiu further added that driven by broad market demands, Coszo continues to obtain more international certifications such as CE and UL. It also takes part in international trade shows at National Agriculture Exhibition Center, China Dongguan International Mould & Metalworking Exhibition and China International Hardware Show 2007 in Shanghai. Coszo is planning to attend SEMA trade show in Las Veges this year, as well as Hannover Messe 2008 to reach more oversea customers.

COSZO products all satisfy worldwide original equipment manufacturer OEM applicants, most notably in Europe and America, it also successes in South Asia and India market this year. Its products include mining machinery parts, steel shaft, pipe fitting, stamping, forge, bucket teeth, vehicle components and structural accessories conform to ASTM, AISI, BS, DIN, JIS and JIS standards.

NingBo COSZO Industry & Trade Co., Ltd. is located in Ningbo City in Zhejiang Province of China. Ningbo COSZO Industry & Trading Co., Ltd. includes 3 factories. One machining factory and one casting factory are producing sand castings, investment castings, and pressure die castings and lost wax castings. The other factory is responsible for metal machining.

Mr Prokhorov agrees to sell 25% stake in Norilsk Nickel to RusAl

RIA Novosti reported that RusAl has agreed the acquisition of a 25% plus one share in the metal's giant, Norilsk Nickel from Onexim Group, Mr Mikhail Prokhorov's holding company. Mr Prokhorov will receive an 11% stake in RusAl, the aluminum giant and a cash payment.

Mr Alexander Bulygin CEO of RusAl said that "This strategic transaction paves the way to develop the enlarged RusAl into a global, diversified metals, mining and energy group."

RusAl said that the merger would provide the scale and scope to allow the enlarged company to compete more effectively with the newly emerging global majors.

Russian FOREX reserves exceeds USD 446 billion

Prime Tass economic news agency, quoting official information of the Central Bank of Russia, said that the Russian gold and foreign currency reserves increased from USD 303.732 billion to USD 446.961 billion from January 1st through October 31st 2007.

Prime Tass said other liquidity in foreign currency went up from USD 866.2 million to USD 1,060 million in January to October 2007. It said as of November 1st Russia’s foreign currency reserve assets exceeded USD 325.418 billion including bonds USD 221.649 billion as well as currency in cash and deposits USD 103.769 billion.

Prime Tass said special Drawing Rights totaled USD 0.8 million adding that Russia’s reserve position in the International Monetary Fund amounted to USD 371.9 million. It said as of November 1st 2007the country’s monetary gold, calculated in compliance with the current quotations of the Central Bank, was estimated at USD 10.954 billion while gold reserves assets amounted to 14.1 million net troy ounces. Other international reserve assents amounted to USD 110.216 million.

Prime Tass said as of November 1st 2007 deposits that are not included in the international reserves in the foreign currency totaled USD 1.060 billion.

Gazprom sets out Shtokman plans

It is reported that the Gazprom Management Committee has approved Shtokman progress with the "Investment Rationale for Comprehensive Development of the Shtokman Gas Condensate Field." The committee tasked the core business units with elaborating the project of the comprehensive development of the Shtokman gas condensate field in the aim of commissioning it in 2013.

Mr Alexey Miller chairman of the committee recently chaired a meeting dedicated to the execution of Phase 1 of the Shtokman field development where the members of the committee, heads of the company's core business units as well as Sevmorneftegaz were present.

The participants discussed major issues related to implementation of Phase 1 of the Shtokman field. Particularly, the meeting addressed issues on setting up a special-purpose company to manage engineering, financing, construction and exploitation of installations at Phase 1. The participants decided to establish the special purpose company no later than December 20th 2007. The company's management board also must be established during the same time period.

The core business units and Sevmorneftegaz were tasked to provide execution of the Shtokman project pursuant to the schedule, which provides synchronized start-up of gas production and supply via the pipeline as well as liquefied natural gas production.

Severstal board recommends dividend

Severstal has announced that its Board of Directors, held on November 22nd to 23rd 2007, recommended a dividend of RUB 2.50 per share and per global depositary receipt for the nine months 2007 with the record date of November 14th 2007. Each GDR represents one share in the Company.

Approval of the dividend payment is expected at the company's EGM on December 20th 2007.

FDI in 9 months in Russia up by 52% YoY

RIA Novosti citing Russia top statistics body reported that accrued foreign investment in Russia increased 52.2%YoY in January to September 2007 to USD 197.8 billion.

The State Statistics Service said "In January to September 2007, foreign investment in the Russian economy totaled USD 87.9 billion or 150% more than in the same period last year. It said loans from international financial institutions, trade credits and other repayable investments accounted for the largest part of foreign capital invested in the Russian economy in the reporting period 53.5% followed by direct investment 44.4% and portfolio investment 2.1%.”

The statistics service said Russia's main investor countries in the first nine months of 2007 included Great Britain, the Netherlands, Cyprus, Luxembourg, Switzerland, Ireland, France, Germany and the United States accounting for 85.5% of the value of accrued foreign investment and 84.4% of the value of accrued direct investment.

The World Bank said in a report that Russia's economy is now growing at maximum capacity, boosted by high global energy prices and a strong inflow of foreign capital.

Ukrainian trade deficit nearly triples in 9 months of 2007

Ukrainian Journal Staff reported that Ukraine's foreign trade balance deficit in from January through September was estimated at USD 3.71 billion nearly three times the level seen in the same period last year.

Over the nine months, exports grew by 25.7% to USD 41.98 billion while imports rose by 31.2% to USD 45.69 billion.

TMK wards certificates to its dealers in Metal Expo

It is reported that during recent international exhibition "Metal Expo 2007" held in the All Russian Exhibition Center, TMK awarded certificates to its dealers.

Mr Sergei Bilan Deputy Director General of TMK said "The results of our dealers have confirmed a strong position in the market TMK Russia and the CIS. The volume of products that the Company sells through regional dealer network increased annually. TMK interested in strengthening business relationships with its trading partners, as well as our partners are interested to become official dealers Company. Stable and long-term cooperation is the guarantee of effective work."

TMK annually sells more than 300,000 tonnes of pipes through its dealers’ network in Russia, Ukraine, Belarus, Kazakhstan, Uzbekistan, Azerbaijan and Kyrgyzstan.

Kazakhstan and China in uranium barter deal

Interfax China reported that the president of Kazakhstan's state run nuclear power company Kazatomprom has revealed that the company intends to swap some of its shares in a uranium mine in exchange for stakes in Chinese nuclear power projects.

According to China Business News, Mr Mukhtar Dzhakishev president of Kazatomprom said recently that Kazatomprom will give China National Nuclear Corp and China Guangdong Nuclear Power Holding Co Ltd a combined 49% stake in a Kazakh uranium mine company in return for stakes in unspecified nuclear fuel processing facilities or nuclear power plants in China. Kazatomprom will retain a controlling 51% stake in the uranium mine.

Mr Lu Gang a senior researcher with the Shanghai Institute for International Studies told Interfax that the move could show that Kazakhstan may intend to develop its own nuclear power industry.

Uranium imports are obviously critical for China as it continues to push forward with its ambitious nuclear power development plans, under which it aims to attain an installed nuclear power capacity of 40,000 MW by 2020. If the country is successful, its annual uranium demand is expected to reach 7,000 tonnes by 2020.

Some researchers have told Interfax that China will still need to source at least some uranium from overseas in order to fuel its nuclear power plants in the future, and that up to 30% of the country's uranium demands will have to be met by imports by 2020.

Power Machines and Zhejiang to supply hydro power equipments

Interfax reported that Power Machines and its partner in China Zhejiang Fuchunjiang Hydropower Equipment have signed contracts to supply around EUR 28 million worth of equipment for the Shengsigou and Yinpan hydropower plants.

Power Machines will design, produce, test and supply four runners for 165MW hydro turbines for the Shengsigou project. The contract is worth around EUR 17 million. The Daduhe River Hydropower Development Corporation is the customer in the project.

Both contracts will be implemented as part of a strategic partnership agreement that Power Machines signed with Zhejiang Fuchunjiang Hydropower Equipment in April 2007.

Power Machines produces and supplies equipment for hydro, steam gas and nuclear power plants.