Indian iron ore spot price start to slip down

The China Chamber of Commerce of Metals, Minerals & Chemicals Importers and Exporters has announced that the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on November 26th 2007.

The change is with respect to prices posted on November 19th 2007

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

JSW Group to invest INR 40,000 crores

It is reported that JSW Steel has lined up an investment of INR 40,000 crore over the next three years. Mr Sajjan Jindal vice CMD of the JSW group that the JSW group will pump INR 20,000 crore in its core steel business, INR 12,000 crore will be invested in the power sector and the balance INR 8,000 crore in cement, aluminum units and port developments.

Mr Jindal informed that “Of the total amount, INR 25,000 crore will be funded through debts and the rest from internal accruals.”

JSW Steel plans to invest INR 7,500 crore in Tamil Nadu over the next 3 years for capacity expansion and setting up mining facilities.

Mr Jindal said that “Their subsidiary SISCOL planned to use iron ore available in Kanchamalai area in Salem and in Tiruvannamalai district by putting up mining facilities and beneficiation plants at an investment of INR 400 crore.

He added that it also planned to increase its capacity at its existing plant at Salem, from the present 1 million tonnes to 2 million tonnes per annum at a cost of INR 3,000 crore.

Mr Jindal said that the group also wanted to set up a thermal power station with a capacity of 1000 MW, which could be expanded to 2000 MW at a cost of INR 4,000 crore and had identified Ennore port as the ideal site for the project.

RINL awards caster contracts to Danieli

It is reported that Rashtriya Ispat Nigam Limited has contracted Danieli for the supply of 3 new continues casters to produce up to 2.4 million tonnes per year of square billets and 0.33 million tonnes per year of round billets at their Visakhapatnam Steel Plant integrated steel plant.

The contract, signed in July 2007, foresees the supply of two 10 meter radius, 6 strand casters, designed to cast 150mm to 200 mm square billets in low, medium and high carbon steels. The third 10 meter radius, 6 strand caster is designed to cast 150 to 200 mm squares and 220mm, 280mm and 350 mm diameter round blooms in low, medium, high carbon and tube steel grades.

All 3 caster will be suitable for operating in both open and submerged casting modes and will be equipped with hydraulic oscillation tables and Danieli Rotelec mold EMS to achieve excellent surface, sub surface and internal quality. The bloom caster also will feature Final EMS to further improve core quality and minimize carbon segregation.

The supply covers the technology, design, manufacture, complete assembly with mechanical and electrical equipment, fire protection system, air conditioning, and pneumatic system on a semi turnkey basis. The entire unit will be installed in the No 2 steel melt shop which will receive 2.8 million tonnes per year treated liquid steel from the secondary refining units.

Supply and installation of the new units will be carried out by Danieli Centro Met in consortium with Danieli Engineering India Limited and Gillanders Arbuthnot, with the target of 25 months from contract effective date.

Indian Railways to build more LHB SS coaches

It is reported that the demand for SS sheets is all set to see a massive spurt as Indian Railways is proposing to increase the construction of LHB stainless steel coaches and adopt SS shells for ICF design bogies.

LHB design bogies use SS shells. Indian Railways started manufacturing SS LHB coaches at Kapurthala based Rail Coach Factory after a transfer of technology agreement with Alstom LHB of Germany. It had imported 24 coaches from Alstom LHB before the agreement was signed.

Indian Railways has proposed a complete switch over to LHB SS coach production mode at the Rail Coach Factory in Kapurthala and suggested increasing the manufacturing capacity at Kapurthala to 1500 coaches per annum from the present level of 1400 coaches per annum at a cost of INR 37 crore. At present, the production units of Indian Railways annually manufacture about 100 LHB coaches as part of a total capacity of about 2,200 coaches. In its total fleet of about 35,000 coaches, Indian Railways has about 400 LHB coaches.

LHB coaches are used primarily in select Shatabdi and Rajdhani trains, apart from some air conditioned coaches in mail and express trains. These passenger coaches, which are relatively longer, but lighter and maintenance friendly, improve passenger comfort, safety and operation.

ICF design bogies use carbon and corten steel shells. Now, stainless steel shells are longer in size and have corrosion resistance properties. Additionally, SS coaches have about 10% to 12% higher passenger carrying capacity per coach and give a lower unit cost of transportation as compared to corten steel shells. They also rank high on passenger comfort due to various features that include better design and lower noise levels.

Indian Railways, in its supplementary demands for grants, has also proposed to adopt stainless steels shell for ICF bogies. Indian Railways said that “It is proposed to adopt SS shell for the ICF bogies. It is therefore proposed to take up this work at an estimated cost of INR 1145.68 crore.”

It is noted that manufacturing each LHB coach costs an average of INR 2 crore against INR 8.3 million for a coach made of corten steel which is used for the usual coaches in use. However, Indian Railways is considering a move to manufacture coaches with stainless steel body shells of LHB design without the frills to bring down the cost by about 35% to 40%. In terms of speed as well, LHB coaches can run at a higher speed of up to 160 kilometer per hour whereas the other coaches can run at a maximum speed of 130 kilometer per hour. LHB SS coaches have a life of at least 35 years while corten steel coaches have a life of 25 years after which they need to be scrapped.

TATA Steel facing protests over land in Bastar

IANS reported that protests over acquiring 5,098 acres continue to dog TATA Steel's proposed project in Chattisgarh southern Bastar region. The report cited officials of the district as saying that the acquisition is moving forward but protesters from left parties and tribal groups contest this.

Mr Ganesh Shankar Mishra collector of Bastar district said that "The land takeover process and compensation distribution for 4,000 acres of land in 8 of the 10 affected villages is in full swing here. So far, a compensation amount of over INR 22 crore has been distributed. Everything is going peacefully here. Farmers opposing the TATA plant earlier were happy to accept attractive compensation packages and allow the government to take over their plots to pass on to TATA for industrialization."

But Mr Manish Kunjam former legislator, who has been leading protests against the project, said that "The administration and TATA agents are resorting to rumors, misguiding and terrorizing farmers. No one is ready for land handover. The protests are still strong as ever. TATA agents and local administration have been adopting all sorts of tactics to take farmers to the collector's office."

Significantly, the land takeover process picked up after November 5th 2007, when over 75,000 tribals armed with bows and arrows marched through the streets in Jagdalpur. The protesters vowed to step up the struggle against meaningless industrialization in Bastar at the cost of driving out thousands of decade old impoverished local tribes from their ancestral houses and lands.

It is noted that TATA Steel had inked a deal with Chattisgarh government in June 2005 to set up a 5 million tonnes per annum steel plant in 2 phases with an investment of INR 10,000 crore. TATA's steel project needs 5,098 acres of land in Lohandiguda block of the insurgency hit Bastar district.

Indian cement majors line up INR 38,000 crore investments

It is reported that steel and cement companies along with new players are planning to invest over INR 38,000 crore in 3 to 5 years in new projects to tap the boom in cement demand.

As per report following investments are announced
1. Dalmia Cements will be investing INR 14,000 crore in 2 Greenfield plants in Tamil Nadu
2. Reliance Group and MSP Steel & Power will pump in INR 11,000 crore for 6 Greenfield plants in Madhya Pradesh.
3. Asansol based cement maker Burnpur Cement has drawn plans to invest INR 10,000 crore to set up plants in Bihar, Uttar Pradesh and Nepal.
4. India Cements will set up 2 Greenfield projects in Rajasthan and Himachal Pradesh with an investment of INR 1,450 crore.
5. Binani Cements plans to put up 2 new projects in Gujarat and in eastern India with an investment of INR 1,800 crore.
6. Rajasthan based JK Lakshmi Cement, which has just come out of the red, has planned a new unit at a cost of INR 700 crore.
In addition, other cement majors such as ACC Limited, Grasim, UltraTech and Ambuja Cements have all announced expansion to meet the growing demand.

According to ICRA Industry Monitor report, cement industry is expected to add 111 million tonnes to its annual capacity by the end of 2009-10. Installed capacity is expected to rise from 166 million tonnes per annum in 2007 to 186 million tonnes per annum by 2008 end and 219 million tonnes per annum by end of 2009 and up to 241 million tonnes per annum by 2010 end. It added that despite an addition of 6 million tonnes of capacity between March and July 2007, the utilization has been as high as 96.9 million tonnes per during the period. Domestic cement consumption for April to September 2007 period was 53.62 million tonnes up by 10.9% YoY.

The report predicts that considering an expected production and consumption growth of 9% to 10% during 2007, the demand supply position is expected to improve from 2008-09 onwards, which may stabilize price of cement.

PTC India to float offshore arm for acquiring coal assets abroad

It is reported that PTC India is planning to float an offshore arm, jointly with strategic partners, which will hold a 33% stake, to pick up equity in coal mines abroad. The proposed special purpose vehicle will be a holding company registered abroad with subsidiaries that will invest in coal projects and in turn sell the extracted coal from the overseas assets to PTC India.

It is also reported to be carrying out due diligence for coal resources in Indonesia, Australia and Africa and has engaged consulting firm PricewaterhouseCoopers to identify the location where it could pick up equity in coal resources. PTC is eyeing up to 15 million tonnes per annum coal from overseas and plans to set up a special purpose vehicle by January 2008.

PTC will use the coal mainly for power projects where it has entered into power off take agreements, while retaining the option of selling the balance. A part of the coal will also be provided to toll manufacturers who will produce power for PTC and get paid the conversion fee.

CIL MCL to start Kulda open cast mine by December

It is reported that Coal India Limited’s Mahanadi Coalfields Limited is likely to start operations at its Kulda open cast mine under the IB valley coalfield at Belpahad in Orissa by early December 2007.

The proposed mine had received approval of the union cabinet for starting operations in January 2005. The total estimated cost of the project with F grade coal reserve is estimated to be around INR 303 crore.

After completion, it will have a capacity of producing 10 million tonnes per annum of coal.

Chattisgarh and Gujarat to form a power plant JV

IANS reported that Chattisgarh government has agreed in principle to a proposal by the Gujarat government for a JV to set up a 1,300 MW coal fired power unit in Chattisgarh. Mr CJ Jose CMD of Gujarat Mineral Development Corporation called on Mr Raman Singh chief minister of Chattisgarh and submitted the proposal.

Sources in Chattisgarh State Electricity Board said that “The chief minister has agreed in principle to a JV with the Gujarat government to set up a 1,300 MW thermal power plant in the state's northern region which has nearly 18% of India's coal deposits.” It added that a MoU for the JV would be signed soon.

Chattisgarh presently generates 1,405 MW of power including 1,280 MW from thermal plants and 125 MW from hydroelectric power plants. It plans to become India's power hub by the year 2011 with an additional generation capacity of 12,000 MW as several public and private institutions have been lining up for large scale investments in the power sector.

NTPC’s Trincomalee plant to start construction in January 2008

Mr WDJ Seneviratne union minister of power & energy of Sri Lanka said that work on the LKR 5 billion coal power project in Trincomalee in Sri Lanka will commence in January 2008.

Mr Seneviratne said that "With the implementation of the project Sri Lanka's power generation capacity will increase by another 300 MW. The project will commence operations by 2011. The plant will require around 2.5 million tonnes of coal annually. Coal will be imported from Australia and Indonesia.”

The project will be implemented jointly by NTPC and the Ceylon Electricity Board on a build, operate and transfer basis.

Sri Lankan government has also decided to proceed with the proposed coal power plant at Hambantota with the help of the Indian government.

Sri Lanka's annual power requirement is around 7,600 MW. Of this nearly 4,100 MW is generated from hydro power stations and the rest from diesel power stations. Ceylon Electricity Board spends over LKR 80 million per day on fuel to generate power. The same amount of electricity can be produced with LKR 32 million at LKR 4 per unit, through a coal power plant.

Vedanta shares surgeon speculation of a bid from China

It is reported that shares of Vedanta Resources plc has jumped by 12% in London trading on speculation a Chinese company may buy a stake in Vedanta.

Mr Richard Scott at Iimia Investment Group in UK said that "Whether the Vedanta bid speculation is fact or rumor, it seems almost certain that the Chinese will be buyers of resource assets for strategic reasons over the next few years. A lot of investors will be reluctant to give up on emerging markets and commodities as a key positive theme and obviously Vedanta plays to both."

Vedanta, 54% owned by Mr Anil Agarwal, produces copper in Australia, India and Africa. It is spending more than USD 1 billion expanding its copper mine and smelter in Zambia. It also smelts aluminum and refines zinc.

10th National Conference on Safety in Mines begins

Mr Oscar Fernandes union minister of state for labor & employment has inaugurated the 10th National Conference on Safety in Mines in the presence of Dr T Subbarami Reddy union minister of state for mines and Mr MV Rajasekharan union minister of state for planning. The 2 day conference is being organized by the Directorate General of Mines Safety Dhanbad of the Ministry of Labor and Employment.

Mr Fernandes, while speaking on the occasion, said that safety is not merely a concept or practice but it also recognizes the dignity of work and therefore all efforts should be made for the protection and safety of workers who are toiling for the prosperity of the nation. He said that “To work towards the objective of achieving ‘Zero Accident Potential’, serious introspection and analysis is needed for making an impact. There is a need for resources for research, the subsequent development of new processes, equipment and work method and above all for training and establishment of suitable reward system. These actions must accompany the development and implementation of legislation.”

Mr Fernandes said that the various techniques of risk assessment and risk management contribute greatly towards improvement in the safety of mining operations. It is thus desirable that this technique, though in vogue in piecemeal manner as of now, be given the due impetus and dynamism that it deserves so as to realize its full potential. He added that “Investment in safety has a direct bearing on the overall performance of the mining company and it is expected that the mining companies will put adequate thrust on the safety budget to reduce accidents in mines and thereby improving the safety scenario of India.”

Dr Reddy, while speaking on the occasion, said that mining is very important for the growth of our economy and therefore all efforts should be made to make the mining activity totally safe for the workers. For this, modern technology should be brought in and we should also learn from the countries like South Africa, Australia and Canada in this regard.

The 2 day conference will deliberate upon and give recommendations on the following specific issues
1. Contract workers’ problems, safety, health and welfare
2. Safety issues in unorganized mining sector
3. Occupational health surveillance & notified diseases
4. Mechanization with a view to improve safety standards
5. Reduction of risks from roof & side fall in Indian coal mines
6. Below ground communication & tracking system
7. Safety issues in oil mines
8. Safety management systems, strategies for implementation
9. Implementation of ILO convention 176 in mines

The present conference, being the apex consultative forum in India for deliberation on issues related to safety and health at work place in mines, assumes greater importance in the context of the fast changing work environment in the mining industry due to globalization of workplace and more and more contribution of technology in the production processes.

NMCC wants price preference in power sector to continue

National Manufacturing Competitive Council has opposed the union government’s proposal to phase out 15% price preference given to the domestic manufacturers for purchasing power equipment under the mega power policy, saying that it would be unfair for the domestic industry to do away with the price preference at a time when the exchange rates are largely in favor of the international suppliers.

It is noted that union power ministry has proposed the removal of the price preference under the revised mega power policy, as it feels the clause is discriminative to PSUs that have to give this preference and at the same time, ensure cheap power to consumers.

NMCC has, however, argued that the government should first create a level playing field between the domestic and international players and then take any such steps. NMCC said that “Unfortunately, this is not the situation now, with obvious gaps and other policy and fiscal disadvantages impacting the domestic manufacturers which increase their transaction cost and cost of doing business at least by 15%.”

NMCC argued that dismantling of the price preference while allowing imports from foreign manufacturers with zero customs duty would have a negative implication on the domestic industry, especially at a time when the government plans to create a “Made in India” image for domestic machinery manufacturing. It added that under the current policy, it is mandatory for the generation companies to give a 15% price preference to the domestic power equipment suppliers.

Indian power T&D equipment industry slows down in H1

It is reported that growth in the Indian power transmission and distribution equipment industry has halved from 26% in the April to September 2006 period to about 12.2% in the April to September 2007 period due to the delay in execution of projects and increasing cost of raw materials.

According to sources with the Indian Electrical & Electronics Manufacturers’ Association, the industry grew by 22% to 25% in value terms and by 12.2% in quantity terms in April to September 2007 period as compared with 26% during April to September 2006 period in quantity terms and about 45% in value terms. The industry had posted almost 50% growths in value from INR 26,000 crore turnovers in 2006 to IINR 41,000 crore in 2007.

Mr Sunil More director general of Indian Electrical & Electronics Manufacturers’ Association said tips hat “The order book backlogs of T&D companies are filled mainly from the rural electrification projects by the government. Inability of state governments and related authorities to utilize the budgetary allocation within the allotted period and then claim for the next allocations has delayed the rural projects.” He added that similarly, delay on the part of Power Grid Corporation to finalize large T&D projects also adversely impacted the supplier industry.

Indian Electrical & Electronics Manufacturers’ Association said that appreciating prices of raw materials such as transformer oil, steel, copper and aluminum and delay in execution of government-funded projects have curtailed the growth rate.

The major projects of the government are the Rajiv Gandhi Grameen Vidyuthikaran Yojana, for rural electrification and the Accelerated Power Development and Reforms Program, launched since 2000-01 to contain the losses of state electricity boards and to revamp the T&D sector.

Tuticorin Port makes day handling record

Tuticorin Port has handled a record cargo of 110,403 tonnes in a single day on November 17th 2007, surpassing the previous record performance of 105,077 tonnes achieved on September 19th 2006.

A release from Tuticorin Port said that the cargo handled included maize, granite, ilmenite sand, thermal coal, industrial coal, copper concentrate and container cargoes.

Centre to encourage private investment in renewable energy

Mr Vilas Muttemwar union minister of state in the ministry of new & renewable sources said that union government has been encouraging private investment in renewable energy sector through a mix of fiscal and financial incentives that include capital or interest subsidy, accelerated depreciation, nil concessional excise and customs duties.

Further, as applicable to all new infrastructure projects, profits earned from sale of renewable power are exempt from income tax for any 10 years out of the first 15 years of project’s operation. This apart, preferential tariff for grid interactive renewable power is being given in most potential states.

Mr Muttemwar added that there is no proposal to set up corpus for the research and development in various new and development technologies at present. However, an amount of INR 1100 crores has been proposed to support R&D on different aspects of new and renewable energy technologies during 11th Plan period.

Rajasthan inks PPA with Tehri Hydro

It is reported that Rajasthan government has signed a power purchase agreement with the Tehri Hydro Development Corporation Limited for purchase of energy from 400 MW Koteshwar Hydro Electric Project and Vishnugad Pipal Koti Hydro Electric Project of 444 MW.

The power purchase agreement was signed by the CMDs of Jaipur Vidyut Vitran Nigam, Ajmer Vidyut Vitran Nigam and Jodhpur Vidyut Vitran Nigam.

The Koteshwar project is under commission and it is expected to start generation from June 2010. The cost of the project is being shared by the centre and government of Uttar Pradesh in the ratio of 75:25 in equity for power component.

Rajasthan shall be allocated around 8% power from these projects. The energy generated by these 2 projects is expected to add to the energy pool of the northern region and further stabilize the northern grid.

SC Vedanta verdict allows Orissa to rework old pacts

SNS reported that the Supreme Court verdict on Niyamgiri and the proposed Vedanta industries has paved the way for Orissa government to re work its agreements replacing Vedanta with Sterlite Industries and mine bauxite reserves of Niyamgiri hills for the proposed alumina project.

On the other hand, the opposition parties are equally elated alleging that unholy nexus and undue favor shown to a company whose standing has been questioned. Opposition leaders asked if the court felt valuable national resources cannot be handed over to such a company, how and why was it that the chief minister had rushed in ignoring all norms and helped them. The opposition also wants a CBI probe into everything done with the company in the state.

They asked that even if Sterlite Industries were to work it out now, what about the University project of Vedanta for which the Mr Patnaik is willing to allot over 6,000 acres of prime land near Puri. Mr JB Patnaik leader of opposition said that “We had persistently raised doubts. Foundation stone for the project was laid by the chief minister Mr Naveen Patnaik even before any clearance was accorded, forest land acquired and then hurriedly withdrawn when there was uproar over it and an elephant sanctuary proposal was also withdrawn to facilitate mining.” He added that all this tells a story which can be unraveled by the CBI.

Meanwhile, Mr Naveen Patnaik and his ministerial colleague Mr Padmanab Behera were unfazed. They were confident that the court verdict has set things in the right perspective as far as mining Niyamgiri is concerned. In fact it is the environmentalist and wildlife activists who are the most worried lot here. They feel that their basic contention of elephant corridor, rare species, streams and ecology of Niyamgiri was lost.

Rio Tinto in advanced stages of diamond exploration in MP

It is reported that Rio Tinto Plc’s Indian subsidiary Rio Tinto India is in advanced stages of exploration at Chatrapur in Madhya Pradesh. At present, it is assessing the economics and financial viability at the location for undertaking mining.

Mr Nik Senapati CEO of Rio Tinto India said that “Diamond mining at this location will, however, depend on clearances from the ministry of environment & forest and the Supreme Court. However, we are in advanced stages of exploration at Chatrapur.”

He said that “A typical diamond mine requires 12 to 14 years to start while Rio Tinto’s experience has been 8 years for its 3 existing mines. Currently, it is into diamond prospecting and exploration at states including Chattisgarh, Orissa, Karnataka, Andhra Pradesh, Madhya Pradesh, Maharashtra and Rajasthan. But in MP we have reached an advanced stage. At MP, diamond was discovered by Rio Tinto in 2005 while we have started prospecting in 2002.”

He added that a typical diamond mine requires an investment of USD 500 million. He also could not provide any timeframe as to when could mining be started at the location.

BHPB bid for Rio - Rio rebuffs BHPB offer as undervalued

Rio Tinto Ltd Rio laid out new justifications for rejecting a USD 150 billion takeover bid from rival BHP Billiton Ltd. that would create global mining behemoth.

Mr Tom Albanese CEO of Rio Tinto said that the full value of the company's assets was yet to be reflected in the market. Mr Albanese reaffirmed that he thought BHPB’s bid fundamentally undervalued Rio Tinto, which he said was better placed to deliver value as a stand alone firm. He said "The rise in global mineral demand is a trend that we expect to continue for decades driven by fundamental demographics and economic shifts, especially in developing economies like China and India.”

He said "We believe we have a better growth pipeline than our competitors, which puts Rio Tinto in a strong position to supply the metal hungry world. While BHP may need Rio Tinto, Rio Tinto doesn`t necessarily need BHP.”

He added that "We have the people, execution capability and resources to work smarter, faster and better than our competitors."

Brazilian iron ore export in 9 months up by 10.4% YoY

YIEH reported that Brazil in September 2007 exported 22.79 million tonnes of iron ore and the total export volume was around 199 million tonnes during January to September 2007 up by 10.4% YoY as compared to January to September 2006 period.

Brazil's iron ore export volume in the main states is as following

1. Minas Gerais state exported 12.538 million tons in September 2007 and 104 million tonnes in January to September 2007

2. Para State exported 6.21 million tonnes in September 2007 and 53.96 million tonnes in January to September 2007

3. Espirito Santo State exported 3.351 million tonnes in September and 31.97 million tons in January to September 2007

4. Maranhao state exported 423,000 tonnes in September and 5.013 million tonnes in January to September 2007

5. Mato Grosso do Sul state exported 267,000 tonnes in September and 2.021 million tons in January to September 2007

Rio Tinto to invests USD 2.4 billion in two new iron ore mines in Pilbara

Rio Tinto has announced a further significant investment in its iron ore export capacity in the Pilbara region of Western Australia, with the approval of the new Mesa A Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price. The combined investment of USD 2.42 billion in the two mines will ensure that Rio Tinto's leadership of the Pilbara matches its unparalleled global position in the iron ore industry. The mines will begin production in 2010.

The Mesa A Warramboo mine about 50 kilometers from Pannawonica, will have an initial production of 20 million tonne per annum increasing to 25 million tonne per annum by 2011. The mine will sustain production of Robe Valley pisolite ore at 32 million tonnes per annum over the next decade. Current production from the Mesa J deposit, now nearing the end of its mine life, will reduce to 7 million tonne per annum with Mesa A providing the balance. A 49 kilometer rail extension will connect the new mine to the Rio Tinto rail network. The project capital cost is estimated at USD 901 million. Both expansions are subject to Government approvals.

Mr Sam Walsh CEO of Rio Tinto Iron Ore said that the new mines are integral to the Pilbara production platform underpinning Rio Tinto's rapid expansion of its global network of assets. He said that "Mesa A/Warramboo and Brockman 4 demonstrate our strategy of substantial investment in high-quality, long life, low cost assets. They are outstanding deposits, close to existing infrastructure, and each promises excellent commercial returns.”

He added that "Brockman 4 will bring on a new, high volume long life source of Brockman ore, a key component of the Pilbara Blend product successfully introduced to the market in July this year. Likewise, our Robe Valley pisolite product has consistently proved to be competitively attractive for our customers."

Indonesian Inco workers end strike

It is reported that workers at the Indonesian unit of nickel producer Inco Ltd resumed work on Monday after an 11 day strike that caused a production loss of 5 million pounds of nickel.

Mr Jannus Siahaan a spokesman of PT International Nickel Indonesi said that hundreds of workers at the firm's Sorowako site on Sulawesi Island have been on strike since November 15, demanding higher bonuses and wages.

He added that "We signed an agreement on Sunday and mining operations are running normally again today. We are optimistic that we can meet this year's target of 165 million pounds."

The company's mining site in Sorowako has 3,500 workers and another 3,500 contract workers.

PT Inco is a wholly owned by Brazil's Companhia Vale do Rio Doce through Canada's Inco Ltd, produced 157.9 million pounds, or 71,700 tonnes of nickel in matte last year.

BHPB bid for Rio - Chinese steelmakers deny bid for Rio

China Iron & Steel Association and officials from first tier Chinese steelmakers said they are unaware of the report about their participation with China Investment Corp to make a rival bid for the world's third largest miner.

China Business Journal reported that China Investment Corp established in September to manage USD 200 billion of China's USD 1.43 trillion in foreign exchange reserves plans to bid against BHP Billiton Ltd for Rio Tinto Group. The report also says that state owned steelmakers including Baosteel Group Corp Shougang Corp and Anshan Iron & Steel Group would join the bid.

Mr Wu Xiaoling deputy governor of the People's Bank of China noted in early March that part of China Investment Corp Investment would focus on strategic sectors. UBS also revealed in its report that the world's three biggest miners CVRD, BHP and Rio Tinto might be targeted by CIC. According to market insiders the market talk that China Investment Corp may seek stake in BHP has already started in the first half of this year on back of China's huge foreign exchange.

(Sourced from MySteel.net)

Brazilian crude steel output in October up by 4.4% YoY

According to the latest data released by the Brazilian Steel Institute, Brazilian steelmakers continued to boost crude steel production in October on robust demand from the automotive and civil construction industries.

The release said that Brazilian steelmakers produced 2.899 million tonnes of crude steel in October 2007 up by 4.4% YoY from 2.778 million tonnes in October 2006. Its January to October 2007, crude steel output was up by 9.2% YoY at 27.902 million tonnes as compared with 25.550 million tonnes in January to October 2006.

Production of rolled steel products rose by 5.3% YoY to a record 2.252 million tonnes in October as compared with 2.139 million tonnes in the same month a year ago. That topped the previous monthly record of 2.19 million tonnes set in May.

IBS said that output of long steel products reached 881,700 tonnes in October 2007 up by 9.6% YoY from the same month of 2006. October's long steel production topped the previous monthly record of 879,100 tonnes posted in August. Long steel production has been boosted throughout 2007 by a surge in civil construction and infrastructure projects so far in 2007.

In addition, output of flat steel products recovered from two consecutive months of declines to rise 2.7% in October, In October, Brazilian steelmakers produced 1.370 million tonnes of flat steel products, up from 1.334 million tonnes in the same month a year ago.

Domestic steel sales continued to grow at double digit rates in October, surging 23.8% to 1.883 million tonnes from 1.522 million tonnes in the same month of 2006. IBS said that high value rolled products, especially the flat steel used to make cars, trucks and white line domestic goods, continued to dominate domestic sales. Domestic sales of rolled steel products jumped 23.3% in October to a record 1.808 million tonnes. That was up from record rolled steel sales of 1.765 million tonnes set in August. In addition, sales of semifinished products such as slabs, blooms and billets surged 35.6% to 75,100 tonnes.

Export sales continued falling in October as local steelmakers diverted output to domestic sales. Export sales tumbled 30.1% from a year earlier to 666,200 tonnes. For the first 10 months of the year, steel exports were down 16.4% at 7.906 million tonnes from 9.455 million tonnes in the same period of 2006.

Sidenor strengthens presence in Cyprus

Greek Sidenor announced that it has strengthened its strategic cooperation with Domoplex Ltd of Cyprus raising its stake in the company from 13.4% to 45%.

Domoplex sales stood at EUR 10.8 million and EBT at EUR 1.6million in 2006.

BHPB bid for Rio - Rio not engaged with alternatives

Dowjones Business reported that Rio Tinto PLC is not involved in discussions with any other company in an effort to counter BHP Billiton takeover proposal.

Mr Tom Albanese CEO of Rio Tinto PLC during a conference call told reporters that "We have not been engaged in discussions with anyone at this stage."

An earlier report quoted unnamed sources as saying that China Investment Corp, a sovereign wealth fund is considering to unite with Chinese steelmakers to offer about USD 200 billion for Rio Tinto to counter a takeover bid from BHP Billiton.

Rio declares force majeure at Australia coal mines

Reuters reported that Rio Tinto will curb coal shipments from two mines in Australia's Queensland state after key export terminal reduced allocations due to port congestion.

Rio Tinto in a statement said that company called force majeure after the Dalrymple Bay Coal Terminal reduced port allocations by 4.1 million tonnes for the first quarter of 2008. A Rio Tinto spokesman said that “This reduction in port entitlements is significant, and follows numerous reductions throughout 2007. The size of these reductions in port entitlements will prevent Rio Tinto Coal Australia from performing our obligations under the terms of our coal contracts, which is why we have declared force majeure. At this stage we are unable to provide an estimate of the duration of the force majeure event.”

Rio Tinto Coal Australia's share of the allocation cuts will be 1.2 million tonnes, split between 0.5 million tonnes at Hail Creek and 0.7 million tonnes at the Blair Athol mine, it said. The two mines produce 20 million tonnes of coal a year.

Rio Tinto is the largest user of the coal terminal in central Qld, and its 1.2 million tonne share of the 2008 cuts would be split between Hail Creek and Blair Athol. The coal terminal has been expanding in a bid to meet increasing demand, but the development work has also resulted in numerous cutbacks to port allocation during 2007.

Japanese auto steel supplies becoming tighter

JMB reported that Japanese steel supply is getting tighter for automobile industry.

Japanese automakers revise the domestic output plan around 11.8 million units for finished car and around 8.7 million units for knockdown sets for fiscal 2007 ending March 2008, which is around 300,000 units higher for finished car and around 800,000 units higher for knockdown from previous year.

The release added that the output level is higher than domestic integrated steel makers' outlook at maximum 11.6 million units of finished car and around 8 million units of knockdown despite some negative factors including slower domestic auto sales, potential slower auto export under higher yen rate and higher oil price. The steel makers try to increase the steel supply for automobile industry to meet strong demand.

Xstrata Nickel to declare its takeover offer for Jubilee Mines unconditional

Xstrata Nickel Australia Pty Limited, a wholly owned subsidiary of Xstrata plc announced that it intends to declare its takeover offer to acquire all of the shares in Jubilee Mines NL free of all conditions if it receives acceptances so that it has an interest in more than 50% of Jubilee shares by 5 PM on December 6th 2007.

It said that acceptances can be received under the offer and in addition via subsisting instructions under the Institutional Acceptance Facility described in Xstrata’s Bidder’s Statement dated November 9th 2007.

Xstrata’s interest in Jubilee as at close of business November 23rd 2007 is 16.5%. This interest includes shares owned by Mr Kerry Harmanis executive chairman of Jubilee and certain other shareholders including the other directors and senior management of Jubilee, who have agreed to sell all their Jubilee shares to Xstrata and no other party for the offer price of AUSD 23 per share.

Mr Ian Pearce CEO of Xstrata Nickel said that “We believe our cash offer of AUD 23 per share is very attractive to Jubilee shareholders. It remains our intention to facilitate an offer process that will deliver this certain cash value to Jubilee shareholders as quickly as possible. We also wish to minimize any period of uncertainty for Jubilee employees and operations. The Jubilee Board stated in its Target’s Statement dated November 15th 2007 that no more favorable proposal from any other party had emerged following a confidential sale process involving several interested parties. No party has announced a superior offer for Jubilee since then. We are therefore willing to declare our offer unconditional under certain circumstances, in order to expedite the process.”

Mr Kerry Harmanis executive chairman of Jubilee said that “We support Xstrata’s initiative to expedite the offer process and encourage Jubilee shareholders to accept the Xstrata offer. In the event that Xstrata achieves acceptances in excess of 50% by December 6, 2007, and declares its offer to be unconditional, as stated in the Bidder’s Statement, accepting shareholders will be paid five business days after the date the offer becomes unconditional.”

Xstrata also intends to pay handling fees to brokers in respect of valid acceptances received from Jubilee retail shareholders. The full terms of the broker handling fees will be announced in the next few days.

TKC Steel unit gets BOI nod for incentives

Treasure Steelworks Corp, a unit of listed TKC Steel Corp has secured the nod of the Board of Investments for incentives, covering its capacity expansion and project upgrades.

The incentives, under the 2007 Investments Priorities Plan, allow for duty free importation of capital equipment needed for Treasure Steelworks’ projects, as well as a three year income tax holiday from its commission date.

TKC has also applied for incentives for its blast furnace project.

TKC Steel Corp which recently raised PHP 2.3 billion from its follow on offering also owns Zhang Zhou Stronghold Steel Works Co Ltd a manufacturer of steel pipes in the southeastern Chinese province of Fujian.

Mount Isa repairs completed as planned

Bloomberg reported that the world’s third largest lead producer Xstrata plc said that it has completed repairs at its Mount Isa zinc and lead mine in five weeks as planned.

Zug, Switzerland based Xstrata said October 1 a fire in one of its concentrators would cut output of zinc by as much as 30,000 tonnes and lead by as much as 20,000 tonnes.

Ms Claire Divver a spokeswoman said that “Lost production was somewhat lower than original estimates.” She added that temporary facilities were set up during the repairs to process ore.

Xstrata’s Northfleet lead plant in the UK suffered a five month disruption to supply through the end of June because of reduced ore production at Mount Isa.

South African VR Steel expands operations and product range

South Africa steel products manufacturer VR Steel expects to double the size of its business in its financial year to June compared with last year with the introduction of new products and exports.

MD John van Reenen founder of VR Steel last week during a visit to the group's operations said that the company had expanded its range of products to include hydraulic shovel buckets and truck bodies from its core business of dragline buckets.

Mr Van Reenen said the company had successfully broken into the Australian, Indian, US and Brazilian markets and would start exporting hydraulic shovel buckets to Canada next year. He added that VR Steel would sell 20 to 30 buckets next year, of which half would be exported. Mr Van Reenen also said that they had received little export assistance from the government and called for more tax incentives, such as restoration of the triple tax deduction on sales and marketing expenses, as well as research and development.

Draglines, which are massive digging machines, are used mainly by the big coal miners, as their size makes them economically viable only for operations of 2 million tonnes or more of coal a year. VR Steel supplies dragline buckets to companies such as Anglo Coal, BHP Billiton and Energy Coal SA and claims about a 90% domestic market share. Each dragline bucket costs about ZAR 3.9 million.

Hydraulic buckets and truck bodies are used by a wider range of mining companies.

VR Steel employs about 150 people at its plants in Alberton and Middelburg, with a capacity to produce 20 dragline buckets, 35 to 40 shovel buckets and 60 truck bodies a year. It spends up to ZAR 10 million a year on research and development.

James River ink deals on coal shipments

AP reported that coal producer James River Coal Co has reached agreements in October and November to ship CAPP coal next year at an average price of USD 54.76. The average price is well above third quarter agreements to ship coal at an average price of USD 47.14.

Mr Peter T Socha chairman & CEO of James River Coal said that "We continue to have a significant amount of our expected 2008 CAPP shipments available to price and sell into the strengthening world markets."

James River Coal also said it expects 2008 adjusted earnings before interest, taxes, depreciation and amortization between USD 52,000 and UDS 60,000. Capital expenditures are anticipated in a range of USD 48,000 to USD 52,000.

ArcelorMittal proposes to end dispute with Czech Republic - report

Weekly Euro without citing any sources reported that ArcelorMittal is proposing to end a CZK 20 billion crown arbitration dispute with the Czech Republic on the condition that the Czech Republic cancels a CZK 2.5 billion fine for the world's largest steel company.

The paper said that earlier ArcelorMittal was ordered to pay the fine due to overcharging coke supplies for its subsidiary pig iron producer Vysoke Pece.

It added that ArcelorMittal is demanding CZK 20 billion as damages for being excluded from a privatization tender for steelworks Vitkovice Steel.

Zinifex has copper in its sights

Australian zinc miner Zinifex during its annual general meeting said that it has increased its focus on copper recently because the skills used to mine copper are very similar as for zinc.

It said it plans to spend about USD 100 million, a three fold increase on last year, on exploration and development, to enable its plan to discover and develop copper alongside its zinc production.

Japanese scrap prices down

YIEH reported that Japanese steel companies in Kanto region have reduced their scrap purchasing prices successively, after Tokyo Steel announced to cut its buying prices.

Current H2 scrap price is prevailing at around JPY 35,500 per tonne. Nippon Steel Corporation’s Kimitsu works has also cut their Scrap NO.1 price by JPY 500 per tonne and new price is at JPY 39,500 per tonne now.

The report further added that due to the change in the building standards law, many mills have announced to cut their long products output.

Xstrata Copper sees molybdenum expansion at Altonorte

Xstrata Copper's North Chile Division announces the commencement of feasibility studies on an expansion to more than double molybdenum processing capacity at its Altonorte metallurgical facility. The project's environmental impact study will be submitted to Chile's environmental authorities for approval in early 2008.

Subject to environmental approvals and a positive feasibility study, construction is expected to start in the second half of 2008 with commercial production commencing in the second half of 2009 with an initial estimates indicate an investment of approximately USD 40 million will be required to refurbish a second molybdenum roaster at Altonorte that is currently idle and to construct a Brenda molybdenum leaching plant.

The two projects would increase molybdenum processing capacity at Altonorte from the current 12,000 tonne per annum to 28,000 tonne per annum.

Mr Jon Evans COO of North Chile Division said that "This project forms part of North Chile Division's strategy to transform Altonorte into a world class metallurgical facility that meets the highest environmental standards and offers a wide diversity of products."

In June 2007, Altonorte began construction of an expansion to increase copper concentrate processing capacity by over 30% to 1.2 million tonnes and sulphuric acid production to 1.1 million tonnes per annum from the first quarter of 2009.

Consolidated Thompson starts work at Bloom Lake project

Consolidated Thompson Iron Mines Limited announced the commencement of development work at the Bloom Lake project in Canada. This preliminary work includes site clearing, construction of access and service roads, as well as the installation of a power line (34.5 kV) and involves an aggregate investment of approximately CAD 8 million. The Company expects to employ at least 50 people at the project before the end of the year.

Situated in the Caniapiscau region, 13 kilometer north west of the town of Fermont and 8 kilometer north of the Mont Wright mineral deposit, the Bloom Lake project is the first new mining project on the North Shore of Quebec since 1974.

Consolidated Thompson has recently signed an off take agreement with a Chinese company for the sale of 5 million tonnes of iron ore concentrate per year. Consolidated Thompson is expecting a total annual production of 7 million tonnes of iron ore concentrate from the Bloom Lake Deposit. Based on a feasibility study prepared by Breton Banville & Associates, the Company estimates that mine life at Bloom Lake will be 34 years.

Mr Richard Quesnel president & CEO said that "With China's economic rise and its corresponding increased steel consumption, the present level of global iron ore production is unable to respond to continually increasing demand. The current market situation for iron ore, characterized by strong demand and rising global prices, presents an exceptional opportunity for Consolidated Thompson as it begins preliminary development work on Bloom Lake. The Company is excited to develop the Bloom Lake project in this encouraging market."

Rio Tinto approves Diavik underground mining

Rio Tinto has approved investment in the underground mining phase of the Diavik Diamond Mine. The approval is for additional funding of USD 563 million bringing the total investment to date in the underground mine to USD 787 million. The investment will be funded by the two Diavik joint venture partners, Rio Tinto at 60% and Harry Winston Diamond Corporation at 40%.

Under the current life of mine plan, diamond production from underground would begin in 2009 and continue beyond 2020. Open pit mining is expected to cease in 2012, at which time Diavik would become an all underground mine. Diavik's total mine life remains within the 16 to 22 years projected in the original feasibility study of 1999.

To support underground mining, Diavik must construct new surface works including a crusher and paste backfill plant, expand its water treatment and power generating plants, and construct ancillary facilities including fuel and cement storage, and additional accommodation facilities. Approximately 20 kilometers of underground development works will also be established to bring underground mining into production. The capital investment of USD 563 million will be spent over the next two years, adding to the USD 224 million invested in 2006-07 for the underground feasibility studies and related capital projects.

This significant new investment in underground mining will provide training, employment, and business opportunities in addition to those significant benefits that Diavik already provides. Diavik remains firmly committed to continuing its work with local communities and governments to meet its socio-economic and its environmental commitments.

The Diavik Diamond Mine, located 300 kilometer northeast of Yellowknife, Northwest Territories, is an unincorporated JV between DDMI and Aber Diamond Mines Ltd. Both companies are headquartered in Yellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto plc of London, England, and Aber Diamond Mines Ltd. is wholly owned by Harry Winston Diamond Corporation of Toronto, Canada. DDMI is the operator of the project.

Bushfire causes mine evacuation

ABC online reported that a large bushfire burning between Mount Isa and the George Fisher mine, in north west Queensland prompted the precautionary evacuation of workers by Xstrata last Friday.

Fire crews carried out back burning and used a grader to establish fire breaks to control the blaze along the Barkly Highway.

Mr John Fowler a spokesman of Ergon Energy said that a power blackout in Mount Isa was caused after flames threatened powerlines leading to the mine. He said that "The fire under the privately owned high voltage transmission lines to one of the mines impacted on the available power supply coming from the Mica Creek Power Station. So in effect we had load shedding in Mount Isa because there wasn't enough power coming into our network. Now we lost power to about 3,000 customers for around about 20 minutes so it was a short duration."

The bushfire moved away from the mining lease over the weekend towards May Downs station.

Mr DiCiccio appointed GM of IPSCO Montpelier

IPSCO a division of SSAB Svenskt Stal AB announced the appointment of Mr Ed DiCiccio as general manager of its Montpelier Iowa steel making complex. Mr DiCiccio's responsibilities will include the overall operation of the 1.250 million tonne plate mini mill and its 400 IPSCO employees.

Mr DiCiccio joined IPSCO in 1998 with 20 years of steel industry experience. He is a recognized expert in casting and primary steel operations and has served in a variety of senior operating positions with the IPSCO Iowa Steelworks. He holds a Business Administration degree.

Mr David Britten senior vice president of IPSCO said that "Ed's extensive experience brings us the type of management which will help our division's continual integration with SSAB and their goal of becoming a world leader in high strength steel products. Ed will also continue IPSCO's heritage of caring and social commitment in the Quad City community." He added that "That commitment is integral to our culture and we are proud to have that business practice associated with the IPSCO name."

IPSCO is an industry recognized name and leader in the North American plate and tubular market. Purchased by SSAB in the second quarter of 2007, the division is now a part of a global steel producer committed to growth in core niche high strength steel products. The IPSCO division consists of four steel mills, eleven pipe mills, nine product finishing facilities and nine scrap processing centers in 25 geographic locations across the United States and Canada.

Australia's Flinders Diamonds identifies new iron ore deposit

Asia Pulse reported that Junior explorer Flinders Diamonds has identified a 390 million tonne iron ore target in the Pilbara region of Western Australia.

Flinders said it had conducted an independent review of its Hamersley tenement after iron ore hopeful Fortescue Metals Group Ltd discovered a one billion tonne resource in the area.

Flinders said its Hammersley tenement adjoined Fortescue's newly discovered iron ore resource. It was conducting a review of available options for the tenement.

ThyssenKrupp, Toepfer and Imperial Logistics JV cleared by EU

Thomson Financial reported that the European Commission has cleared ThyssenKrupp MinEnergy GmbH and Alfred C Toepfer GmbH's proposed international sea transportation venture with Imperial Logistics International GmbH.

The transaction was reviewed under the EU's 'simplified merger review procedure for cases, which the commission believes do not pose competition concerns.

Under the terms of the deal, the three companies will each hold a 30% stake in German logistics company Brouwer Shipping & Chartering GmbH & Co KG. Until now, Imperial Logistics International has owned 90% of Brouwer. The remaining 10% will continue to be held by Mr Holger Ranf chairman of Brouwer.

ThyssenKrupp MinEnergy GmbH is a unit of German conglomerate ThyssenKrupp AG and Imperial Logistics International GmbH is the global operative logistics operation of South African mobility group Imperial Holdings Ltd.

Siemens receive orders f steam turbine technology from Korea

Siemens Power Generation announced that it has received orders for industrial steam turbines worth more than EUR 150 million. One of the biggest deals is for the supply of four SST 900 reheat steam turbine generators to a South Korean construction company for installation in a Greenfield power plant near the city of Dangjin. The Siemens turbogenerators will be delivered successively throughout 2009 and commercial operation is scheduled for mid 2010.

The four Siemens SST 900 steam turbines ordered by Daelim Industrial will be used to generate power for a steel mill owned by the South Korean company Hyundai Steel. The mill will provide the fuel (gases from the production process) to fire the new plant, which will be built by a joint venture between Hyundai Steel and Korean Midland Power Company Limited.

The SST 900 is the most powerful turbine in the Siemens industrial steam turbine range, and it has been sold into a number of countries throughout the world recently.

Siemens will also supply four SGen 6 100A 2P type generators with a capacity of 116 MW each, the control system spares and services, as well as customer training. Daelim Industrial has also expressed a requirement for two further identical units within the next twelve months.

Mr Markus Tacke head of the Industrial Steam Turbine business said that "With its optional reheat capability, the SST-900 is specially designed for power generation applications, particularly cogeneration and combined cycle."

PC Forge steelworkers go on strike

It is reported that almost 100 workers have gone on strike at a steel plant in Port Colborne. They walked off the job at PC Forge just after midnight. The release added that pensions are the big issue.

Mr Wayne Fraser director of United Steelworkers said that the strike is also due to proposed clawbacks on wages and holidays. He added that Union staff say they've done all they can to prevent a work stoppage and are disappointed to be walking off the job.

So far, no new talks are planned.

This is the first strike at PC Forge, a division of IMT Partnership, since the facility opened 37 years ago.

US court rules pipe AD case in favor of Turkish steel mills

It is reported that an antidumping case over Turkish iron and steel filed by a US commission has been decided in favor of Turkey, with the decision lifting the barriers to US imports of iron and steel from Turkey.

It is noted that the US International Trade Commission had filed an antidumping case early 2007 against Turkish steel pipe producers Çolakoglu Metalurji, Ege Çelik Endüstrisi Sinai ve Tibbi Gazlar and İÇDAŞ Çelik. A preliminary investigation by the commission had found in favor of Turkey and did not impose any dumping penalties on the companies.

Mr Kürtad Tüzmen foreign trade minister of Turkey has commented immediately after hearing the long awaited decision, saying that exports of iron and steel products to the US will increase shortly. He added that he was pleased with the final decision following the protracted investigation conducted by US officials.

He has recalled that Turkey ministry had offered US official’s full cooperation in their inspections of Turkish iron and steel companies in May and June 2007. He added that “We held numerous talks with US officials on this issue. As a result of our studies, a preliminary decision had been issued in favor of Turkey a few months ago, but now this decision has been finalized and published in the US’s official bulletin.”

Mr Tüzmen further added that Turkey had been exporting USD 500 million worth of iron and steel to the US annually but that this trade had been adversely affected when the US initiated the antidumping probe. Iron and steel exporters had been facing difficulties in exporting to the US due to both low exchange rates and the ambiguity in this case. He said that “However after this decision, iron and steel exports from Turkey will improve quickly.”

Hadeed commissions new DRI plant

It is reported that the world's largest direct reduction plant with an annual production capacity of 1.76 million tonnes of direct reduced iron was successfully started up by Siemens Metals Technologies for the Saudi Arabian steel producer Saudi Iron & Steel Company as part of a new Siemens supplied steel mill which was recently started up and is capable of producing 1.4 million tonnes of flat products per year.

Another highlight of this project is that DRI from the direct reduction plant is hot charged via a so called hot transport system directly into the EAF. This solution reduces electric steelmaking costs and results in shorter tap to tap times for an increased liquid steel output.

The new DR plant is the 5th direct reduction plant in operation at Hadeed. It is a Midrex type module of the Megamod series. The shaft furnace, with an inner diameter of 7 meters, is the largest shaft furnace built to date. The plant has a production capacity of about 220 tonnes of DRI per hour, all of which is consumed in the steel production facilities of Hadeed. The DRI is mechanically transported by conveyor in the hot condition to 2 EAF hot DRI storage bins via a so called hot transport system. Steel production at Hadeed is based on the melting of scrap and DRI in a ratio of approximately 25% scrap and 75% DRI.

This additional output would increase the total annual steel production capacity at Hadeed to approximately 5 million tonnes. This project comprised the supply of the 1.76 million tonnes per annum direct reduction plant, a 150 tonne electric arc furnace, a 150 tonne ladle furnace, a single strand slab caster in addition to the related de dusting, automation and auxiliary facilities. The new steel mill was built adjacent to the existing flat steel production facility and production commenced in March 2007.

Danieli adds 4th strand to the Asil Çelik bloom caster

It is reported that a Danieli billet caster, in operation at the 400,000 tonnes per year Asil Çelik steelmaking plant since the mid 1990's, has been completed with the installation of the fourth casting strand which started operation in September 2007.

The up graded caster would produce 135mm and 240mm square blooms for rolling a large variety of engineering and special steels.

A 70 tonne Danarc EAF and a 70 tonne ladle furnace, both supplied by Danieli, have been operating successfully at the same plant since the beginning of April 2005 and July 2006, respectively.

Asil Çelik is a major producer of high quality alloyed and non alloyed hot-rolled long products for the automotive and machine manufacturing industry.

Cares certification for rebars gaining grounds in UAE

It is reported that Cares certification in the UAE construction industry is becoming increasingly important with most producers on the Dubai Multi Commodities Centre rebar futures market being approved by the UK Certification Authority for Reinforcing Steels. Certification of steel creates more traceability and manages volatility in the tumultuous steel market.

The DGCX recently announced a list of Turkish steel producers for its rebar futures contract and Izmir Demir Celik Sanayi, Ekinciler Iron and Steelworks and Diler Iron and Steel Company have all been approved.

Mr John Short ED steel and base metals of DGCX said "The DGCX has a lot of time for what UK Cares seeks to achieve with rebar integrity. We can approve a non UK Cares mill and have one SABIC Steel on our list. However the chance of a non UK Cares approved mill coming on board is extremely slim."

Mr Ben Bowsher ED of UK Cares said that UK Cares certification would help to enable greater confidence in trading. He said "Confidence in steel supply in the UAE is required. Local manufacturers like Qatar Steel should be congratulated for expecting the considerable cost and technical effort in achieving UK Cares certification.”

Karachi Port berths collapse in August due to age

Business Recorder reported that the berths at Karachi Port collapsed, in August, due to expiry of their life span.

The report cited Lieutenant General Muhammad Zubair member of implementation & monitoring o Pakistan’s planning commission as saying that “No evidence had been found to confirm that the berths had collapsed because of deepening of the port or overloading.”

He said that the inquiry committee had submitted its investigation report to the Planning Commission and that the report did not fix responsibility on any individual, or Karachi Port Trust.

He gave a conceptual clearance to the KPT berths reconstruction plan. He said that “The life span of any concrete structure is not more than 50 years or 55 years, and the berths at Karachi port were built in 1950s. So, their life span was over, and this was the reason of the berths' collapse.”

Iran attracted over USD 32 billion foreign capitals in 14 years

Mehr News Agency reported that, based on a report of the Foreign Investment Organization, foreign investments in Iran stand at USD 32.082 billion from March 1993 to October 2007. The figure came for 384 projects.

European states have the lion’s share with USD 15.775 billion pushing Asian investors to the second rank with 11.024 billion. African countries stand 3rd with 1.841 billion. American, Pacific and multinational states’ investments total 1.040 billion, USD 682 million and USD 1.692 billion respectively.

Pakistan aiming for speedy growth of engineering sector

Mr Salmaan Taseer Pakistan’s federal minister for industries, production & special initiatives recently 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 its officials and told that they should expand their activities so that major sub sectors of engineering could be developed and that a comprehensive industrial policy is being developed for the rapid industrialization of Pakistan. He invited EDB to provide necessary inputs on engineering sector for it.

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. The ministry of industries, production & special initiatives was preparing comprehensive industrial policy for rapid industrialization of Pakistan.”

Istithmar and Nakheel to merge

Middle East Economist Digest said that Dubai World, which is selling a stake in port operator DP World, is planning to combine two real estate units into a company with USD 52 billion worth of projects under development,

MEED, citing a senior source at Nakheel, said that “Nakheel, which is developing palm tree shaped islands off Dubai's coastline and Istithmar Real Estate would be merged into a single company by the end of the year.”

MEED said that the combination would help Nakheel expand its operations abroad, something it has been planning to do for more than three years.

Istithmar owns real estate assets in London and New York, including One Trafalgar Square and the Knickerbocker Hotel.

Brazilian firms eying building materials market in Qatar

It is reported that Brazil is looking to boost supplies of building materials to Qatar where the construction industry has been booming. A delegation of Sao Paulo based Arab Brazilian Chamber of Commerce Brazilian said that they were not only keen on supplying construction materials but also setting up JVs.

The 33 member delegation representing 25 construction majors had a meeting with local businessmen at the Qatar Chamber of Commerce and Industry. The meeting was presided over by Mr Mohammed bin Ahmed bin Towar Al Kuwari executive board member of QCCI and was attended by Mr Michel A Alaby ABCC secretary general foreign trade director and Mr Rolemberg Estevao de Souza Brazilian charge d' affaires.

Mr Al Kuwari said that the volume of trade between Qatar and Brazil was USD 156 million in 2006, which was not up to the expectations. He added that "We have more potential for trade. I hope this visit helps boost economic ties between our 2 countries."

Mr Alaby said that the delegation was basically in Qatar to look for JV prospects. Brazil started exporting to Qatar various food products, automobile and timber in 1998 while importing fertilizers.

Gulf Oil Corporation to build IT park in Yellahanka

Gulf Oil Corporation Limited has announced it has received approval from the Karnataka Udyog Mitra to build a state of the art, mixed use IT Park on its 40 acres plot at Yellahanka in Karnataka. The IT Park will also provide hotel, services apartments, retails, multiplexes and other facilities.

The approved Master Plan, prepared by the Indian arm of Singaporean Architects, RSP Architect Planners and Engineers Limited, is for a total area of 5 million square feet. The actual development of the Park will be jointly done by Gulf Oil Corporation Limited and Asia Properties Development Limited.

Gulf Oil Corporation Limited had also announced the development of a Knowledge City at Hyderabad spread over 100 acres. This plan has been conceptualized and necessary approvals sought from the government of Andhra Pradesh. The development will be of bigger magnitude and would be of futuristic nature considering the importance of India as a global destination.

Dubai Maritime City sells 1st phase o properties

It is reported that Dubai Maritime City, the world’s first purpose built maritime centre and a member of the Dubai World Group of Companies, has recently sold out the first phase plots of the massive maritime complex’s commercial and residential districts to leading international developers and contractors.

Mr Amer Ali CEO of Dubai Maritime City said that "The sales performance of the first phase exceeded our expectations, with the huge response owing to the huge value of the project in terms of its creativity and excellence, as well as being the first of its kind in the region and in the world. We are pleased to see the project steadily realizing its economic potential, which is even more proof of this maritime city’s success."

Work on the various residential and commercial projects within the Maritime City will commence in the near future, with developers required to secure green building certification for their projects in line with the development policies and strict environmental standards of Dubai Maritime City. The key focus of the green building design will include energy consumption conservation measures such as reduced use of non renewable sources, reduced production of waste pollutants, maximized opportunities for passive ventilation and cooling and enhanced indoor environmental air quality.

The first and second phase of Dubai Maritime City’s construction has been completed on schedule, with the 1.2 kilometer long six lane causeway connecting the mega project to Dubai fully complete, while around 50% of the industrial precinct in the City is now operational and managed by Jadaf Dubai. On completion, DMC will encompass harbor offices, harbor residences, the maritime centre, an academic quarter, a marina district and the industrial quarter managed by Jadaf Dubai.

Gulf Oil Limited acquires Petromin

Gulf Oil International Limited has announced that, along with its JV partner Dabbagh Group of Saudi Arabia, it has acquired Petromin.

Petromin is a 71:29 JV between Saudi Aramco and Mobil Investments SA. It has annual sales of 80,000 tonnes and a turnover in excess of USD 200 million. Petromin is the largest manufacturer of lubricants in the Kingdom of Saudi Arabia and exports to over 20 countries.

Mr Sanjay Hinduja chairman of Gulf Oil International said that “This acquisition will help Gulf Oil consolidate its presence in the growing Middle East market and will also build the platform for growth for our business in the Middle East and Africa.”

Gulf Oil International which is on an expansion spree recently acquired a lubricant plant in Jebel Ali and is also constructing a new 50,000 tonnes lubricant plan in Yantai in Shandong province of China.

South Pars gas field phase 6 to be operational in 5 weeks

Mr Gholamreza Manuchehri MD of Petropars Company recently announced that the platform of phase 6 of South Pars gas field in Iran would become operational within 4 or 5 weeks. He added that the second platform of phases 6, 7 and 8 development plans would be also loaded within a month.

Located in the strategic Persian Gulf, South Pars, the largest known gas reserves, is shared between Iran and the tiny emirate of Qatar. It contains 1,900 trillion cubic feet of in place gas and 56 billion barrels of in situ condensate in the shared region. Production started from South Pars after commissioning of phase 2 in December 2002.

Mr Manuchehri said that “Refinery of phase 6 has been already fed with sour gas and would come on stream in the upcoming weeks.” He added that the development plan of phases 6, 7 and 8 faced no problem in the onshore operations, reiterating that only Phase 6 of SP gas field would be put into operation by the end of current Iranian year on March 19th 2008.

Mr Ali Ne’matollahi manager for logistical affairs of South Pars field’s phases 6 to 8 said that “According to the forecast, the first phase of the development plan of phases 6 to 8 is expected to come on stream by mid December 2007.” He added that the gas produced by phase 8 would be sweetened and injected into the cross country grid for a limited period, reiterating that the phase would be given top priority to meet the growing need in winter.

Mr Gholamhossein Nozari oil minister of Iran had already said that phases 6 to 8 made almost 98% progresses, with phase 6 being fully ready for operation. He added that “Phase 6 has been completely developed and progress of phases 7 and 8 had surpassed 97.5%.” Mr Nozari expressed his satisfaction with the pipe laying operations in the 3 phases, saying a trivial problem had occurred in the third pipeline that would be removed immediately. He added that phase 6 would be supplied with the required gas as of late November 2007 and it would play a logistical role for refineries of South Pars field.

Iran and Turkey to boost trade ties

Tehran Times reported that Iran and Turkey has underlined the expansion of mutual economic ties.

Mr Parviz Rezaeii commercial department head of Trade Promotion Organization of Iran said that a Turkish delegation comprising exporters, industrialists and producers is in Tehran to reinforce bilateral relations. He added that Iran has the capacity to produce steel, cars, parts of cars and machinery, petrochemicals and construction materials.

Pakistan plans to increase oil prices

It is reported that Pakistan government has decided to increase oil prices as it is facing difficulties to absorb the PKR 13 billion per month loss on account of the continuing rise in oil prices in the international market.

Dr Salman Shah caretaker minister for finance said that "We have started facing negative impact on our budgetary projections and therefore, it has become inevitable to revise upward petroleum prices either from December or January 2008."

He added that he projected an impact of PKR 25 billion in the budget for 2007-08, keeping in view the increasing trend in the international oil prices but since this impact had increased manifold, the government was forced to shortly announce certain increase in the oil prices.

Mr Shah said that the government was anticipating that international oil prices would stabilize during the first 6 months of the current financial year. He added that "But it did not happen and now we cannot adjust our budget without increasing the prices of petroleum products and the nation has to live with it. We are not in a position to continue paying PKR 13 billion per month as price differential claims to oil marketing companies keeping in view our current budgetary position."

Meanwhile, the officials of the ministry of petroleum and natural resources are believed to have proposed PKR 7 per liter in the prices of petrol and PKR 6 each per liter for diesel and kerosene oil from December 1st 2007.

Last time Pakistan government had adjusted the oil prices on January 16th 2007, revising them downward by PKR 4 per liter and PKR 1 per liter in petrol and diesel respectively. Since then there was no adjustment in oil prices which remained unchanged till to date.

ArcelorMittal and Hunan Valin to form auto steel JV - Report

Reuters cited Chinese executive as saying that ArcelorMittal plans to set up an auto steel JV in China in which it will take a 30% stake with Hunan Valin Steel Tube and Wire Co Ltd and its parent.

Mr Li Jianguo president of Hunan Valin Iron and Steel Group, which controls Hunan Valin Steel Tube, while speaking on the sidelines of an industry conference in Beijing, said that the auto steel JV would be located in the southern Chinese province of Hunan and have an annual capacity of fewer than one million tonnes of cold rolled steel sheets.

Mr Jianguo said that Hunan Valin Steel Tube, partly owned by ArcelorMittal, would have a 40% stake in the planned auto steel venture. He said Valin Iron and Steel Group would hold the remaining 30% stake in the auto steel venture under an agreement to be signed soon in Europe, adding that the project would await approval from

Mr Jianguo added that that ArcelorMittal would also establish a stainless steel JV with its Chinese partners

Mr Jianguo did not disclose the size of the investment in the two joint ventures, while an official at Valin Steel Tube's board office declined to comment.

Chinese HR export offers on upward trend

It is reported that the recent two weeks, the Chinese steel mills generally increased the export quotation of HR.

Export offers have gone up evidently by USD 30 per tonne to USD 40 per tonne to USD 600 per tonne to USD 610 per tonne on FOB basis as against USD 570 to USD 580 levels in October.

Many producers are reluctant to export at any prices lower than USD 600 per tonne FOB since they could gain better profit in domestic market.

Some producers are said to be cutting HRC export volume to make up the domestic allocation due for last month. They had been seized for exports due to rebound in export offers in end October. While other steel makers transferred its HRC output for CRC making, which have been affected by failure of electricity supply in Tangshan area in the past three weeks.

China to unveil 20 regulations governing foreign M&A

According to senior Chinese legislator that China will introduce more than 20 supporting regulations on foreign mergers and acquisitions of domestic firms before August 2008.

Mr Cheng Siwei VC of the Standing Committee of the National People's Congress told a forum in Beijing that the regulations will come out in a series before the Antitrust Law goes into effect on August 1st 2008.

Mr Cheng stated that “The regulations will help ensure that foreign M&A deals promote China's economic growth without threatening its economic security. Under the Antitrust Law, China would scrutinize foreign M&A proposals if they posed a potential threat to national security.”

He added that “To evaluate foreign M&A deals, the first factor should be whether the domestic firms were fairly priced. The second was whether the deal would lead to company asset growth.”

CITIC to invest USD 4.6 billion in Balmoral iron ore project

It is reported that Hong Kong's Citic Pacific Ltd, a listed unit of China's Citic Group, plans to spend USD 4.6 billion on its proposed Sino Iron Project in Australia.

The Balmoral mine is 80% owned by CITIC after remaining 20% stake was sold to China Metallurgical Group for USD 1.75 billion.

Citic Pacific said in a statement that Construction in Western Australia's Pilbara region is due to start in 2008. Production of 27.6 million tonnes may start in 2009 with iron pellets and concentrates exported to Chinese steel mills.

Mr Larry Yung chairman of Hong Kong based Citic Pacific's said the project includes options for expansion that could increase production to over 70 million tonnes a year.

The Citic Pacific project involves construction of a concentrator, pellet plant, slurry pipeline, port facilities, power station and desalination plant.

Shenua to buy PT Andro – Report

The South China Morning Post reported that Shenhua is considering buying a controlling stake in unlisted PT Adaro Indonesia, controlled by the Soeryadjaya family and 36% owned by investors including Goldman Sachs and Citigroup.

It cited unidentified sources as saying that “Shenhua had not been content with merely buying a small slice of the firm via Adaro's USD 750 million IPO, to be launched in Jakarta in 2008. Instead, it could either take a controlling stake and scrap the stock sale, or buy out existing shareholders at the time of the IPO.”

But top executives at the Indonesian firm denied that it had any contact with Shenhua. Adaro marketing manager Mr Alastair Grant, who was cited in the report, said earlier on Monday that he was not aware of any approach by Shenhua to its shareholders. Shenhua executives also declined comment.

Adaro has mining operations in four deposits in Indonesia's South Kalimantan province with a total reserve of 3 billion tonnes of low sulphur coal. Adaro said in August it was on track to churn out 36 million tonnes of coal in 2008.

TISCO forms a SS JV with Tianjin Pipe Investing Co

Taiyuan Iron & Steel Co announces that it has signed agreement with Tianjin Pipe Investing Co and Tianjin Pipe Yuantong Stainless Steel Co recently for forming a JV called Tianjin Taigang Pipe Stainless Co in a bonded area to take advantage of preferential policies.

According to the agreement, TISCO and Tianjin Pipe Investing Co would both hold 50% shares of the joint venture after the investment for the first phase, while after the second phase, TISCO should hold 55% stocks and Tianjin Pipe Investing Co may hold the left of 45% stocks. Registered capital of the new joint venture is CNY1.66 billion and TISCO would invest CNY 830 million in the first phase. Taigang will contribute by cash entirely, TPCO Investment Co by total assets and cash.

The business of the joint venture covers research, exploitation, production and distribution of stainless coiled sheet, interrelated technology consultation and service, international trade on stainless steel and ferrous metal, bonded storage, exhibition of products, etc.

The design capacity in the first phase of the JV is 160,000 tonnes of stainless sheets per annum with thickness range between 0.3mm to 3mm and width range between 800mm to 1,320mm. Products cover 200 series, 300 series and 400 series stainless steel and surface includes 2D, 2B, No 1, No 3, No 4 and HL plate. The construction of the second phase ahs already been approved by authorities and the capacity is supposed to be expanded to 360,000 tonnes per annum.

TISCO said that “The cooperation with Tianjin Pipe Investing Co would raise the ability of control on the market, especially the market in North China. At the same time, it would bring significant economic benefit to the company. Because Tianjin is the nearest port to TISCO, the cooperation is convenient for the company to develop import and export in future.”

TPCO Yuan Tong Stainless Steel Ware Corp has three holders now, ie TPCO investment Co, taking 97.42%; Hong Kong Yuan Tong Trade Co taking1.97% and China 13th Metallurgical Construction Co taking 0.61%. Before interposition of Taigang, TPCO Investment Co will first buy the other two holders' stake and make it wholly owned.

East China boasts of huge iron ore potential

According to the China Ministry of Land and Resources almost half of China's unproven iron ore resources are located in eastern regions, implying huge potential in East China.

China has been pouring increasing investment in iron ore exploration. Last year proven reserve of 2.1 billion tonnes was newly discovered in virtue of investment of CNY 585 million.

So far merely 49% of iron ore resources in the country have been proven. Unproven reserve amounts to approximately 70 billion tonnes, among which 51.3 million tonnes sit in eastern regions, mainly East Liaoning-South Jilin, Shanxi Hebei and middle and lower reaches of Yangtze River. Figures in the above three regions are estimated at 20 billion, 10 billion and 1.5 billion respectively.

To date, China has discovered 8896 iron ore deposits with 1971 proved. About 70% of the 6925 unproved ones intersperse among eastern regions, thus it is hopeful that China will find a new batch of iron ore deposits in eastern regions.

(Sourced from MySteel.net)

Silicon steel stable in Shanghai market

It is reported that recently the cold rolled silicon steel price remained stable in Shanghai.

Baosteel’s 470 grades - CNY 7350 per tonne
Wuhan Steel’s 600 grade - CNY 7100 per tonne
Angang’s 800 - CNY 6650 per tonne
Wuhan Steel’s 800 grade - CNY 6600 per tonne
Baosteel’s 1300 grade - CNY 6650 per tonne.

(Sourced from MySteel.net)

SS market rebounds at Wuxi

It is reported that recently the stainless steel market rebounds a bit in Wuxi.

4mm to 5mm HR pickled plate is quoted at CNY 27700 per tonne
10mm or thicker directly rolled plate is quoted at CNY 31000
CR coil 1.0mm to 2.0mm stood at CNY 30800 per tonne around

(Sourced from MySteel.net)

Pangang produces seamless tubes for nuclear power plants

It is reported that Pangang group PanChenggang Company has succeed in producing chromium carbon steel seamless tube for the domestic nuclear power stations.

As per report, it is the first time for one million kilowatt level nuclear power stations in china to use the entire sets of pressure piping tube which are made in own country.

China and Russia to build 10 million tonnes refinery in Tianjin

It is reported that China and Russia have agreed to locate a planned oil refinery capable of processing 10 million tonnes a year in the northern port city of Tianjin.

China's top oil firm, China National Petroleum Cooperation and Russia's Rosneft have set up a JV in Tianjin to implement the project, which is still subject to approval by the National Development and Reform Commission. The refinery project is a concrete follow up to the two companies' agreement reached in March 2006 to intensify cooperation in the oil sector.

A possible site for the refinery will be the Tianjin Harbour Industrial Park, about 80 square kilometers off the Bohai Bay east of Beijing. The central government has listed Tianjin as a national base for the development of the oil industry.

Risks in mining investment in China

According to Mr Liu Shuchen of China’s Ministry of Land and Resource investment in mining holds a long payback period and time is the most unstable investment factor.

He said that “Another risk is the shortage of special information and experience. As for many mines, you do not know the information underground.”

He informed that “Although a mine holds a complete set of evaluation reports, there are still many actual situations which do not match the evaluation report when it is sold. It is very normal for us industrial insiders, but many investors may not stand it.”

Ferrexpo to spend USD 158 million to expand iron ore output

Ukrainian Journal reported that Ferrexpo Plc, which owns 86% of Ukraine's top iron ore pellet producer Poltava Mining, has launched a USD 158 million project to expand production at the Horishne-Plavninske and Lavrikovske deposits to about 32 million tonnes of ore per year by 2011 from the current 28 million tonnes.

The project will also entail extending the life of the mine at these production levels to at least 2035. This expansion and mine life extension are in addition to that detailed in the business plan associated with Ferrexpo's listing in London in June.

IUD to build coke ovens at Czenstochowa in Poland

Ukrainian Journal reported that Industrial Union of Donbas plans to invest about EUR 40 million in the construction of a coking plant with capacity of 390,000 tonnes of coke per year in the Polish city of Czenstochowa.

Mr Konstantin Litvinov CEO of IUD Polska told Interfax that it has called a tender for construction of the coke oven battery on turn key basis to be completed by October 1st 2009.

No plans to split up Gazprom

RIA Novosti cited Mr Sergei Ivanov first deputy prime minister of Russia as saying that Russian energy giant Gazprom will not be split into several companies to produce, transport and distribute natural gas.

Mr Ivanov said "I think no one in their right mind would want to break Gazprom up.”

He dismissed the idea as futile attempts by the European Union to force Russia to break up the state controlled natural gas giant into smaller companies.” Mr Ivanov said "This is caused primarily by a drive to pressure us, to force us into making unjustified, unnatural concessions. He said Russia does not intend to subsidize the power sectors of former Soviet republics, and that the countries must function as independent states on an equal footing.”

He added that “one should not forget that in the past 17 years we have actually spent tens of billions of US dollars to subsidize the economies of some CIS states.”

Red October crude steel production in 9 months up by 2.4% YoY

Interfax reported that the Kransy Oktyabr metallurgical plant in Volgograd produced 605,357 tonnes of steel in the first nine months of 2007 up by2.4% YoY.

It’s finished steel production increased by 8.1% YoY to 917,862 tonnes and in terms of value by 47.2% YoY to RUB 11.52 billion.

Kransy Oktyabr produces more than 670 types of high alloy, heat resistant, stainless, ball bearing, instrument making and other steels.

CJSC Russian Special Steels acquired the plant in February 2007.

Sumitomo intends to purchase the coal share in Yakutia

Rusmet reported that Japanese company Sumitomo Corp intends to share of the Engilsk coal deposit in Yakutia. Its goal is to provide stable deliveries of power station and coke coal.

The executive president of Sumitomo said that the giant resources of the deposit, the huge uplift and the geographical closeness to the Japanese market are the great advantage, especially nowadays, when the transportation cost of raw materials is rising.

Mechel poised for Ruse utility stake acquisition

It is reported that Mechel is seeking the approval of the Bulgarian authorities for the acquisition of the district heating utility in Ruse, on the Danube.

The Bulgarian Commission for the Protection of Competition said that it has received a notification from Mechel for a joint take over of the utility in partnership with Ljubljana based Holding Slovenske Elektrarne.

Mechel's bid for a 49% stake in the Ruse utility will also have to be reviewed by the Bulgarian Post Privatization Control Agency. Mr Atanaska Bozova ED of PPCA said the agency has received the relevant paperwork from the CPC and the PA and it will be reviewed by the supervisory board next week.

In early July this year, HSE, tapped in late 2006 to acquire the Ruse utility for a price of EUR 85.1 million put up for sale a 49% stake without notifying the Privatization Agency in advance. The sell off contract requires a PPCA sanction for the disposal of any equity during a period of three years after the deal. HSE was advertising the Ruse utility stake at a price of EUR 42 million.

One miners rescued in coal mine collapse in Ukraine

Ukraine emergencies ministry announced that rescuers saved one miner and found the bodies of two others following a rock slide at a coal mine in eastern Ukraine.

The ministry said "On Monday at 04:42AM local time rescuers freed one miner who had fairly serious injuries and found the bodies of two miners. Work continues to bring the bodies to the surface."

The accident at the Abris mine in the city of Antratsyt in the Lugansk Region occurred at 11:38 AM local time on Sunday at a depth of about 210 meters. Three miners were trapped underground.

The latest incident came one week after a major disaster at the Zasyadko mine in the neighboring Donetsk Region. A methane explosion in the mine on November 18th 2007 claimed the lives of 100 miners.

Norilsk Nickel named Siberia's most profitable company

The main criterion for the rating was sales volume of goods and services in 2006. Norilsk Nickel is second in this list, with USD 10,504 million, which was by 53% more than in 2005.

Search for missing miners called off in Zasyadko coal mine

AP reported that Industrial safety workers on Monday declared 11 miners missing after a coal mine methane blast dead on Monday, bringing the death toll in Ukraine's worst mining disaster to 100.

Fires have continued to burn hundreds of meters underground in the Zasyadko mine in eastern Ukraine, blocking efforts to find the last miners. Experts say preliminary information shows the November 18th 2007 explosion was caused by defective electrical equipment.

Ms Maryna Nikitina a spokeswoman for the Industry Safety Authority said "Experts came to a conclusion that no one could survive inside the mine under such temperatures."

Severstal announces sponsorship of the Detroit Institute of Arts

Severstal has announced its sponsorship for the Detroit Institute of Arts as it reopens following extensive renovation and expansion. The sponsorship underscores Severstal’s tradition of charity investment in support of art and culture in the regions where it operates, as well as its commitment to showcase the historical impact and cultural heritage of Russian art globally.

Mr Graham W J Beal director of the DIA said “Thanks to the support of Severstal and other benefactors, we are able to continue providing a gathering place for the vibrant community that is metropolitan Detroit. With the completion of this project we're building on a great tradition and are looking forward to working closely with Severstal in the future.”

Commenting on the sponsorship, Mr Alexei Germanovich senior VP of Severstal said “We believe that art is a language of culture that is universally understood, and have continuously supported the enrichment of that cause. Our support of the DIA is reflective of Severstal's commitment to enriching the communities around us not just economically, but also culturally. We also have a special affinity for the DIA as it has a fresco by Diego Rivera that depicts one of our blast furnaces from the 1930s, giving patrons a glimpse into our history.”

Mr Ron Nock CEO of SNA said “We are proud and excited to be a part of a global company that supports the communities where it operates. The DIA is both a Detroit and a National treasure and the efforts to preserve and restore this landmark means that it will be available for people to enjoy for many years to come.”

Russia power utilities to use more coal in future

Reuters cited Mr Igor Kozhukhovsky an executive at state controlled utility Unified Energy System as saying that Russia liberalizes natural gas prices, coal will become the most cost effective fuel for electricity production as of 2008.

Mr Kozhukhovsky head of the economic policy department of UES said that "As the price of gas grows by 30% we will hit a turning point where coal will become the more attractive fuel. We see this happening next year.”

He said Russia's demand for power would increase by between 2.5 and 3 times before 2020. Electricity prices for industrial clients are also being liberalized over the next four years allowing generators to offset the growing cost of fuel.

Russia to transport oil to China via Kazakhstan

TAR-TASS cited Mr Viktor Khristenko minister of industry and energy of Russia as saying that Russia plans transporting to China 5 million tonnes of oil a year through Kazakhstan.

He said “Today we shall sign an agreement on the transit of Russian oil through the territory of Kazakhstan to China in the amount of 5 million tons a year. He added that the intergovernmental agreement on the Caspian gas pipeline is at a preparation stage.”

Mr Galym Orazbakov minister of industry and trade of Kazakhstan said that “Russia is a strategic trade partner, stable and permanent investor in Kazakhstan’s economy. Trade between the two countries over nine months of this year was USD 11.7 billion or 31.4% above the last year’s figure.”

Russia’s investment was mostly in the sectors that are a priority for Kazakhstan the industry, construction, the financial activity, transport and communications.

Mechel offers to acquire Elgaugol shares from minority shareholders

Mechel announced that it has directed its mandatory offer to Elgaugol OAO to acquire the remaining shares in the company from its minority shareholders.

The mandatory offer of Mechel Invest OOO provides for the acquisition of 245,000 shares of Elgaugol OAO for RUB 14,760.44 (about USD 600) per share which corresponds to the highest price of the shares over the last six month formed as the results of the auction held on October 5th 2007. The minority shareholders are entitled to accept the offer within 70 days following the date of Elgaugol OAO’s receipt of the mandatory proposal.

In compliance with Article 84.2 of the Federal Law On Joints Stock Companies within a 35 day term following the date of transfer of the ownership of Elgaugol OAO shares, Mechel Invest OOO directed its mandatory offer to Elgaugol OAO regarding purchasing the remaining 28.79% of shares from the coal company’s minority shareholders. Elgaugol OAO received the offer on November 22nd 2007.

As previously announced, Mechel’s subsidiary, Mechel Invest OOO, became the winner in the auction which was held on October 5th 2007, to acquire 75% less one share of Yakutugol OJSHC and 71.21% of the shares of Elgaugol OAO.

Russian economy becoming less dependent on oil sector

Interfax cited Mr Sergei Ivanov first deputy prime minister of Russia as saying that the Russian economy is depending less and less on oil. Mr Ivanov said "Russia is still hooked to some extent, but it is overcoming this addiction.”

He said oil and gas production in Russia has been almost stagnant in recent years. Mr Ivanov said that Russian economy has other sectors like manufacturing, machine building, construction and construction materials and services to thank for its growth. He said these are the sectors that are doing most to diversify the economy and get us off our addiction to oil."

Mr Putin approves transfer 90.6% of Kamchatgazprom to Rosneftegaz

Interfax reported that Mr Vladimir Putin president of Russian has signed a decree to transfer the federally held 90.605% of the shares in Kamchatka based gas utility OJSC Kamchatgazprom to OJSC Rosneftegaz.