CPI warns Orissa on land acquisition for POSCO by force

It is reported that the CPI leaders have warned Orissa government of severe consequences if it engaged anti social elements to acquire land for setting up the proposed steel plant by POSCO.

Mr Nityananda Pradhan of CPI alleged that a BJD leader is championing the cause of POSCO for personal interest and is taking help of anti social elements to terrorize people who oppose POSCO project.

The statement by the state unit of CPI came a day after local BJD MLA and former minister Mr Damodar Rout led a pro POSCO rally near the proposed project site at Balitutha in Jagatsinghpur district.

TATA Steel to complete land acquisition in Chattisgarh soon

It is reported that the land acquisition for TATA Steel's plant in Chattisgarh Bastar region is likely to be over by the end of the year.

Mr Ganesh Shankar Mishra district collector of Bastar said that a section of the 1,707 plot holders had agreed to give up their land for the project in Lohandiguda block of Chitrakote assembly segment.

He added that "The protest has started melting with over 150 plot holders of four villages owning about 70 hectares receiving cheques of over INR 3 crore." According to Mr Mishra, cheque would be distributed for the next few days with the takeover process likely to be completed by year end.

TATA Steel had signed a MoU with the Chattisgarh government in June 2005 to invest INR 100 billion to build a 5 million tonne per annum steel plant in 2 phases in the Bastar district. The planned project covers 10 villages where 1,707 plot holders, mostly tribals, have to agree to hand over 2,063.06 hectares to the company for the plant and the township. Out of the project's total land requirement, 86.5% is privately held and the rest belongs to the government's revenue and forest departments. In September 2007, the state government had announced a compensation package for the project and said that TATA Steel would pay INR 100,000 per acre of barren land, INR 150,000 per acre for mono cropped land and INR 200,000 per acre for multi cropped land, besides employing one adult from each displaced family.

Jai Balaji acquires Nilachal Iron & Power in Jharkhand

It is reported that Jai Balaji Industries has acquired sponge iron manufacturer Nilachal Iron & Power Limited for cash down deal of INR 72 crore and Nilachal has now become a 100% subsidiary of Jai Balaji Industries.

Nilachal’s plant has a capacity to manufacture 125,000 tonnes of sponge iron per annum.

Mr Aditya Jajodia CMD of the Jai Balaji Group said that the idea behind the acquisition was to find a toehold in Jharkhand, before implementing Brownfield expansion projects there. He said that “Plans would soon be firmed up to augment the capacity of the plant to 0.5 million tonnes per annum to 1 million tonnes per annum and add a captive power plant of 75MW to 150 MW capacity.”

Mr Jajodia said that within the next 6 to 7 years, the Jai Balaji Group would have a steel production capacity of 8 million tonnes per annum. This would be achieved through Greenfield and Brownfield expansions. A memorandum of agreement has been entered into with the West Bengal government for setting up a 5 million tonnes per annum integrated steel plant, a 3 million tonnes per annum cement plant and a 1215 MW capacity captive power plant in Purulia district of West Bengal at an investment of INR 16,000 crore.

During the July to September 2007 quarter, Jai Balaji Industries recorded an income of INR 274.97 crore up by 109% YoY as against INR 131.38 crore recorded during July to September 2006 quarter. The net profit during the period under review stood at INR 27.28 crore against INR 6.19 crore in July to September 2006.

Sesa Goa Q2 net profit up by 220% YoY

Sesa Goa has posted net profit of INR 821.33 million for the July to September 2007 quarter up by 220% YoY as compared with INR 256.62 million in July to September 2006 quarter. Its net sales grew up by 46.35% YoY to INR 3,311.15 million as against INR 2,262.41. Total income for the quarter also grew up by 47.16% YoY to INR 3,492.10 million as against INR 2,372.87 million.

Performance of Sesa Goa during July to September 2007 quarter is as under

INR in million

Sesa Goa plans to increase the foreign institutional investors’ investment limit from the present 24% to 45% and also plans to amalgamate Sesa Industries, engaged in manufacturing of pig iron, with itself.

ISMT Q2 net profit up by 25% YoY

It is reported that seamless steel tubes maker ISMT Limited has posted a net profit of INR 28.76 crore for the July to September 2007 quarter up by 25% YoY as against INR 23.10 crore in July to September 2006 quarter. Its total income has increased by 6% YoY to INR 306.69 crore from INR 288.50 crore.

During the July to September 2007 quarter, exports grew up by 47% YoY to INR 68.43 crore and accounted for 32% of total tube sales.

For the April to September 2007 period, its net profit stood at INR 51.21 crore and total income at INR 578.49 crore.

Vizag Port serves notice to poor iron ore loaders

BS reported that Visakhapatnam Port has decided not to allow private shippers who are performing poorly in cargo handling for to avoid further congestion as about 32 vessels are waiting due to non availability of berths at the Vizag Port. Out of the 32 vessels awaiting berths, about 10 are iron ore vessels.

Mr KSD Dattu Raju traffic manager of Vizag Port said that “Poor handling performance, particularly in iron ore, by some private shipping companies coupled with bad weather conditions during the last month has led to the present situation. We have been taking several steps to ease the congestion and as part of this, we have decided to issue notices to some of the private shipping companies, who are performing poorly in cargo handling.”

He added that since last 1 month, all iron ore vessels are being diverted to the Vizag port due to problems at Haldia, Paradip and Goa ports. He said that besides, the centre has been diverting a majority of fertilizer vessels to Vizag and all these have increased the waiting time of the ships at the Vizag port.


Mr Raju further added that “Normally, Vizag port handles about 70,000 tonnes of quality iron ore a day through its mechanical handling system. But due to inferior iron ore quality, some private shippers are able to load only 15,000 tonnes to 20,000 tonnes, which has increased the ore handling time.”

SAIL RSP MD bags “Best Chief Executive Gold Award”

It is reported that Mr BN Singh MD of Steel Authority of India Limited’s Rourkela Steel Plant has received the prestigious “Best Chief Executive Gold Award” for recognition of his leadership in various assignments during his illustrious career.

The award has been instituted under the Indira Gandhi Memorial National Awards 2007, for excellence in Indian industries by public sector.

L&T inks pipeline JV with Gulf Interstate

Larsen & Toubro Limited has announced it has entered into a JV with US based Gulf Interstate Engineering Company.

The new venture to be called L&T GULF Pipeline Engineering Private Limited will be located in L&T’s modern engineering campus at Faridabad in the NCR of Delhi.

The JV engineering company will augment L&T's offering in pipelines, support GULF and provide end to end engineering & project management services to the hydrocarbon pipeline industry in India & overseas.

Established in 1953, GULF is one of the world's leading international, project management and engineering, companies for pipelines and associated facilities and is ranked number 2, among pipeline design companies worldwide, by Engineering News Record 2007. GULF designs large diameter pipelines for extreme conditions and is currently active in the USA, Mexico, South America, Russia and the Middle East.

L&T provides comprehensive engineering, procurement, construction and commissioning services for pipeline projects in India and overseas.

CIL may tie up with MMTC for coal import

BS reported that Coal India Limited is in the process of negotiations with Metals & Minerals Trading Corporation as well as port authorities for importing coal.

Mr Partha S Bhattacharyya chairman of CIL, while talking on the sidelines of its 32nd Foundation Day said that "CIL will carry out a study as to what will be the quantum of imports and also make an assessment on the import requirements of the different sectors. We are looking at ports for import of coal." Mr Bhattacharyya said that CIL will import coal from those countries which supply high quality coal at competitive prices.

Mr Bhattacharyya categorically stated the imports are not meant for power and fertilizer sectors which have already been importing coal for meeting their needs and that CIL's coal imports would mainly cater to the requirements of railways and defense.

India imported 23 million tonne of thermal coal and 22 million tonne of metallurgical coal in 2006-07.

Orissa to appoint officers to ensure smooth R&R policy

Kalinga Times recently reported that, with new industrial projects facing growing opposition from the people facing displacement in Orissa, the state government has decided to appoint special officers to ensure smooth implementation of the rehabilitation and resettlement policy.

The special project officers will appointed initially in as many as 8 districts witnessing increasing mining activity, mineral based industrialization and setting up of major irrigation projects. The districts where such officials would be appointed include Jajpur, Keonjhar, Sundargarh and Jagatsinghpur.

The decision to give appointment to such officers was taken at a secretary level meeting which reviewed the progress achieved in the implementation of the new R&R Policy of the state that was adopted in 2006. The meeting was chaired by Mr Ajit Kumar Patnaik chief secretary of Orissa, officials of the departments such as industry, revenue, steel and mines and newly set up directorate of rehabilitation and resettlement. Mr Patnaik said that the necessity of appointment of the special officers was felt as the district collectors of different districts were not able to devote adequate time to oversee the implementation of the R&R policy by the companies establishing industries in the state.

The meeting also decided that the packages for rehabilitation and resettlement being offered by various companies be given wide publicity targeting the people being affected by the new industrial projects.

Orissa government has been claiming that it had adopted one of the best R&R policies but many proposed industries including steel projects of TATA Steel and POSCO are facing stiff opposition from the locals.

Usha Martin Q2 net profit up by 49% YoY

Usha Martin Limited has posted a net profit of INR 459.5 million in July to September 2007 quarter up by 49% YoY as against INR 308.9 million during July to September 2006 quarter. Its profit before tax rose to INR 622.8 million up by 50% YoY from INR 414.7 million.

Consolidated sales, net of excise duty and inter unit and division sales, registered a growth of 11% at INR 5.7 billion compared with INR 5.20 billion. It has also posted a profit before tax of INR 1.17 billion up by 53% YoY as against INR 766.5 million while, profit after tax was INR 836.3 million up by 44% YoY as against INR 582 million.

During the April to September 2007 period, the consolidated sales net of excise duty and inter unit and division sales, has registered a growth of over 9% YoY at INR 10.81 billion compared with INR 9.85 billion.

The captive consumption of steel for downstream value addition in the first half of the current fiscal has registered a growth of over 5% at 85,920 tonnes as compared with 81,438 tonnes in the corresponding period last year.

Vizag port handles record cargo freight in October

It is reported that Visakhapatnam port has established a national record by handling 5.83 million tonnes of cargo in a month in this October, breaking the previous record of 5.69 million tonnes a month set by Kandla port in May 2007. A record number of 210 vessels sailed from the Visakhapatnam port during October 2007.

Mundra Port & SEZ IPO subscribed 5 times on opening day

It is reported that Mundra Port & Special Economic Zone Limited IPO got subscribed 4.67 times on its first day. The issue comprises a net issue of 40,100,000 equity shares to the public and a reservation of 150,000 shares for eligible employees.

Out of the total issue size of 40250000 equity shares the bids were received were 188060580 equity shares on the first day. The price band is of INR 400 to INR 440 and the issue will close on November 7th 2007.

PGCIL board approves JV with REL for Parbati Koldam transmission line

It is reported that Power Grid Corporation of India Limited’s board has approved an INR 800 crore JV with Reliance Energy Limited for setting up the grid lines associated with Parbati and Koldam hydel projects in Himachal Pradesh.

Reliance Energy Limited will hold 74% stake in Parbati Koldam power transmission JV and PGCIL will keep the rest.

800 MW Koldam project is being built by National Thermal Power Corporation and the 1,600 MW Parbati plant is being constructed by National Hydro Power Corporation.

PGCIL had already cleared the Western Region System Strengthening project in Maharashtra and Gujarat, which is a JV comprising PGCIL and Reliance Energy Limited.

DP World moves SEBI against Mundra Port

ET reported that international port operator DP World of Dubai, which owns and operates a container terminal at Mundra through P&O Ports, has approached stock market regulator SEBI with a string of complaints against Mundra Port & SEZ. In a communication to SEBI, dated October 30th 2007, DP World has alleged that the red herring prospectus has failed to make adequate disclosures to potential investors.

The IPO, which opened on November 1st 2007, was already subscribed 4.7 times, based on the preliminary bidding data received from stock exchanges. The price band has been fixed between INR 400 and INR 440 per equity share. The global co coordinators and book running lead managers to the IPO are DSP Merrill Lynch, JM Financial and SSKI. The book running lead managers are Enam Securities, Kotak Mahindra, I Sec and SBI Capital Markets. The IPO will close on November 7th 2007.

Mundra International Container Terminal, a P&O Ports terminal, is now owned by DP World, after it bought over the UK based P&O Ports in a USD 6 billion deal in 2005.

ThyssenKrupp breaks ground for Alabama plant

ThyssenKrupp Steel USA LLC and ThyssenKrupp Stainless USA LLC broke ground on the site of its USD 3.7 billion carbon and stainless steel processing facility at Calvert in Alabama marking the beginning of construction of the 3,500 acre plant.

Thyssenkrupp said that the Permit applications required to begin construction were approved by State and Federal agencies, allowing ThyssenKrupp to remain on schedule for the commencement of operations in March 2010.

Mr Ekkehard D Schulz chairman of the executive board of ThyssenKrupp AG said that "The global steel industry is undergoing a dynamic consolidation process. We are taking our own individual approach, with a clear forward strategy to further position ourselves as a global player in the steel markets of Europe and North America. This is the type of project that represents a very long term commitment. We will be in Alabama for decades to come, providing good jobs for many generations."

Mr Karl Ulrich Koehler chairman of the executive board of ThyssenKrupp Steel and member of the executive board of ThyssenKrupp AG added that "This new processing facility will allow us to strengthen our position in North America. It will create major advantages in terms of quality, costs and access to a customer base with a demand greater than current supply."

Mr Juergen H Fechter chairman of the executive board of ThyssenKrupp Stainless and member of the Executive Board of ThyssenKrupp AG said that "Our investment in Alabama is a central element of the ThyssenKrupp Stainless strategy. The NAFTA stainless steel market has great potential and we are committed to significantly expanding our business in this growth region."

The new facility will include a hot strip mill which will be used primarily to process slabs from ThyssenKrupp's new steel plant in Brazil. It will also feature cold rolling and hot-dip coating capacities for high quality end products of flat carbon steel. The facility will have an annual capacity of 4.1 million tonnes of carbon steel end products. In addition, a stainless steel melt shop will be built with an annual capacity of up to 1 million tons of slabs, which will also be processed on the hot strip mill. A cold rolling facility is to be built, which will be designed initially to produce 350,000 tons of cold strip and 125,000 tons of pickled hot strip. In addition, the stainless steel plant will provide ThyssenKrupp Mexinox at San Luis Potosi in Mexico with its required pre material 340,000 tons of hot band.

New EU SS alloy surcharge mechanism not helpful to buyers - MEPS

Three of the 4 major stainless steel producers in EU, ArcelorMittal, Outokumpu and ThyssenKrupp, have recently announced significant changes to the method of calculating alloy surcharges by devising a mechanisms in which the reference period for determining the cost of the alloys has been moved from between two and three months to just five weeks before the month of delivery of the steel. Whereas the other large producer, Acerinox, stated that it will not modify the current system.

MEPS said that “This will almost certainly benefit Acerinox’s order position in the short term because the proposed method is detrimental to customers. It gives buyers no time to estimate their input costs to enable firm quotations to be made. In most engineering sectors, suppliers are required to give fixed prices for deliveries up to six months ahead.”

MEPS said that “We believe that the new alloy surcharge mechanism is ill conceived. It is a knee jerk reaction to losses the mills suffered in the third quarter of this year when it was clear that alloy surcharges would fall after the collapse of the nickel price in mid year. It takes no account of the substantial profit made in the prior months when the nickel price was spiraling upwards.”

It added that “The alloy surcharge system was brought in many years ago after the mills were forced into buying nickel based on the LME price. The old producer price was discarded. The steel producers and customers were then open to the vagaries of the metals market. Consequently, an alloy surcharge system which was fair to both sides was devised. Over the years, the steel makers honed their hedging skills and they all buy on forward contracts. The daily LME cash nickel price. Which is the reference for the alloy surcharge, does not mirror the price paid by the mills. The advantage has moved in favor of the steel makers. Now they are looking to further that benefit.”

Rebar prices declining in October

According to Platts' average monthly steel prices, steel rebar prices weakened across the board in October 2007. Steeper declines took place in Europe, down an average of 3.6% as compared with September but domestic and imported rebar prices in the US market also eased last month falling by about 0.5%.

The report said that the October price of Mediterranean rebar fell by 4.1% to USD 559 per tonnes FOB Turkey from September's average of USD 583 per tonnes. It added that other European rebar price benchmark dropped by 3.08% to EUR 441 per tonnes ex works Northwest Europe from September's average of EUR 455 per tonnes.

Platts said that US rebar reference prices also declined somewhat. It assessment averaged USD 585 per short tonnes ex works US Southeast in October down from September's USD 586.47 per short tonnes. The US import price in October dropped to USD 565 per short tonnes CIF Houston from USD 568.68 per short tonnes in September.

Gerdau Ameristeel to sell 110 million shares

US bases minimill steel maker Gerdau Ameristeel Corp announced that it will sell 110 million common shares for USD 12.25 each, for total proceeds of USD 1.35 billion.

Gerdau SA currently owns about 66.5% of the company's outstanding stock and has agreed to purchase about 73 million of the common shares from Gerdau Ameristeel in the proposed offering for investment purposes only. About 37 million common shares will be distributed to the public.

Gerdau Ameristeel has granted the underwriters an option to purchase up to an additional 5.5 million shares at the public offering price within 30 days after closing. If the option is exercised in full, gross proceeds would total about USD 1.55 billion.

JP Morgan Securities Inc, CIBC World Markets Corp, ABN AMRO Rothschild LLC and HSBC Securities (USA) Inc are acting as joint book-running managers and Bank of America Securities LLC and BMO Capital Markets are acting as co managers of the offering.

Gerdau Ameristeel said it will use the funds to partially repay loans it took out to buy Chaparral Steel Co.

Flat rolled steel prices in US creeping up slowly

Purchasingdata.com reported that North American hot rolled steel sheet averaged USD 520 per ton for the month of October 2007 up by only USD 7 from USD 513 per ton in September 2007.

The report said that “Buyer surveys show that demand remains weak from original equipment manufacturing firms. The real price flies in the face of a comment from one analyst about exceptional domestic flat rolled momentum when the mills announced a USD 550 price tag for hot rolled coil for this month.”

It added that “The October price actually is in line with the outlook presented earlier by another analyst, who is concerned that seasonally weak metalworking activity this quarter will keep sales prices depressed in the fourth quarter. A market review by Mr Mike Willemse at CIBC World Markets presents little possibility of either hot rolled or cold rolled sheet prices increasing until the first half of next year and then only if manufacturing resumes a healthy rate of growth.”

As per report, “Analysts generally believe steel prices will rise only if there is an unexpected pickup in purchasing by the construction, automotive and appliance industry, substantial production cuts at the steel mills further limiting supply and a further decline in inventories at the service center level that would require restocking. Since these events aren’t expected in the fourth quarter, the Purchasingdata.com forecast has hot rolled sheet in the USD 520 to USD 530 range through December, slipping to USD 515 in January.”

BlueScope introduces new senior management team

BlueScope Steel announced senior management team and organization structure for its Australian and international markets.

Effective immediately, six business executives and three functional executives will report directly to Mr Paul O'Malley CEO & MD of Bluscope Steel
1. Mr Noel Cornish CEO of Australian and New Zealand Steel Manufacturing Businesses
2. Mr Paul O'Keefe CEO of Australian Coated and Industrial Markets
3. Mr Mark Vassella CEO of Australian Distribution and Solutions
4. Mr Brian Kruger president of North America and Corporate Strategy & Innovation
5. Ms Kathryn Fagg president of Asia
6. Mr Bob Moore president of China

Mr Paul O'Malley new CEO & MD of BlueScope Steel said Mr O'Malley said that "My intention is to lead BlueScope as a fully customer focused, agile steel solutions company. My new team combines a great range of skills, experience and perspectives. I am confident we have the talent and reporting structure to leverage our success across our chosen markets. Combining our industrial and coated market businesses allows more focused customer service, and positions us for market growth. Bringing our major manufacturing operations together in the expanded Australian and New Zealand Steel Manufacturing Businesses will provide opportunities for more effective utilization of our assets.”

Mr O'Malley said that "Each executive has clear objectives. For example, Mr Noel Cornish will drive best manufacturing practice across our global portfolio of manufacturing operations. We were delighted to bring the management talent of Smorgon Steel Distribution into our Company. Mr Mark Vassella's expanded role reflects this confidence and in appointing Paul O'Keefe to head the Australian Coated and Industrial Markets business unit, I want to be absolutely sure we help our customers to succeed in their markets. Mr Brian Kruger brings the skills and experience to continue our record of success in North America, while leading corporate strategy and innovation across the Company. Ms Kathryn Fagg will focus on growth in the South East and South Asia markets. And I intend to have a very clear view of our progress in China, so Mr Bob Moore will report directly to me."

Novamerican shareholders approve arrangement with Symmetry Holdings

Novamerican Steel Inc announced that on October 31st 2007 its shareholders approved the plan of arrangement previously announced on June 21st 2007, involving the acquisition by 632422 NB Ltd, a wholly owned indirect subsidiary of Symmetry Holdings Inc, of all the outstanding common shares of Novamerican at USD 56 per share.

The plan was approved by 99.98% of the votes cast by holders of common shares. Upon the plan of arrangement becoming effective, 632422 NB Ltd will deposit or cause to be deposited with the depositary sufficient funds to enable the depositary to make the payments described in the plan.

The plan of arrangement remains subject to the sanction of the Superior Court of Quebec. Novamerican expects that the application for sanction will be heard by the Superior Court on November 7th 2007. Pursuant to the terms of the arrangement agreement dated June 21, 2007, closing of the arrangement will occur within five business days following receipt of such sanction by the Superior Court of Quebec.

Novamerican Steel Inc based at Montreal in Canada with eleven operating locations in Canada and eleven operating locations in the United States, processes and distributes carbon steel, stainless steel and aluminum products, including carbon steel tubing for structural and automotive markets.

PT Timah Tbk 9 month net profit up 19.5 times YoY

Indonesian tin producer PT Timah Tbk announced the unaudited consolidated financial statement for the period ended September 2007, it posted a net profit of IDR 1,264.5 billion or 19.5 times higher than that of IDR 61.6 billion net profits in the period ended September 2006. This has resulted from higher production and sales volume and the average tin price received.

PT Timah said that world's tin prices has been moving up significantly since Q4 of 2006, from USD 8,940 per tonnes at the beginning of October 2006 to USD 15,255 per tonne at the end September 2007. Average tin price received in the Q3 of 2007 was USD 14,905 per tonne or 71 % higher than that of the same period last year, while the average price received during the January to September 2007 period was USD 13,974 per tonne or 67% higher than that of the January to September 2006 period.

Sales volume during the January to September 2007 period amounted to 47,270 tonnes which was up by 54% YoY than that of 30,735 tonnes in January to September 2006 period.

Refined tin produced by the company during the January to September 2007 period was 46,925 tonnes, or 49% YoY higher than that of the January to September 2006 period of 31,530 tonnes. Tin in concentrate production was 76% higher from 28,874 tonnes of Sn in nine months of 2006 to 50,851 tonnes of Sn for the nine months period this year.

Total sales revenue for the three quarters of 2007 of IDR 6,583 billion was 119% YoY higher compared to that of the same period in 2006 of IDR3004.3 billion. Of the total sales revenue, 91.5% or IDR 6,025.4 was contributed by the sale of refined tin, while the remaining 8.5% amounting to IDR 557.6 billion was contributed by the sale of coal, engineering and docking services and exploration services. During the same period in 2006, sale of refined tin contributed 78.3% of the total sales revenue.

Strike at Raahe to cost EUR 5 million to Ruukki

Rautaruukki announced that the financial effects of the strike by members of the Union of Salaried Employees on Rautaruukki were fairly minor. The strike is expected to weaken operating profit for the fourth quarter by around EUR 5 million.

The strike by members of the Union of Salaried Employees stopped hot rolling production and the cutting lines at the Raahe Steel Works between October 22nd 2007 and October 26th 2007. This resulted in the stoppage of product manufacture at the works, as well as deliveries to customers and products for further processing by the company.

The strike affected those functions of Ruukki Production, Ruukki Engineering, Ruukki Metals, corporate administration and transport services located in Raahe.

voestalpine sells automotive subsidiary Polynorm to Caparo

Austrian steel major voestalpine AG announced that it has sold its North American automotive unit Polynorm Inc to UK based Caparo Group. The financial terms of the transaction were not released.

The Caparo group took over Polynorm's assets, workforce and management effective November 1st 2007.

Pacific Steel breaks ground for new facility at Railport

Pacific Steel and Recycling Co broke ground at the Northeastern Nevada Regional Railport for building a full service steel and recycling service on the 44 acre it purchased from Elko County. The sale of land was finalized on July 17th 2007 for USD 440,000.

Pacific Steel is a large steel service center and scrap metals recycler. The company will take commercial and individual items to recycle, including steel, aluminum and fibrous products such as cardboard and newspaper. The Railport project will be its first venture in Nevada.

The employee-owned corporation has been in business for more than 100 years, according to its Web site. It has 37 branch offices in Washington, Oregon, Idaho, Utah, Wyoming, South Dakota and Montana, according to its Web site.

Pallinghurst extends ConsMin offer

It is reported that Pallinghurst Resources Australia Ltd has extended its offer for Consolidated Minerals Ltd by two weeks after a ruling by Australia’s Takeovers Panel. Pallinghurst’s offer will close on November 16th 2007. The offer had been scheduled to end on Friday.

Australia’s Takeovers Panel ordered Pallinghurst to remove a top up payment from its AUD 1 billion takeover offer for ConsMin. The panel had earlier declared unacceptable circumstances over the payment. The panel said ConsMin shareholders who had accepted the offer could withdraw their acceptance.

The top up clause of Pallinghurst’s offer provided for the company to raise its offer to meet any higher bid. Pallinghurst plans to appeal the decision.

A competing offer from Palmary Enterprises Ltd is due to close on November 23rd 2007.

Sumitomo Metals gets 5 awards in H1 of 2007

Sumitomo Metal Industries Ltd announced that it has received the following commendations from customers and foundations during the April to September 2007 period.

1. The Ichiumura Prizes in Industry Contribution Prize from the New Technology Development Foundation on Apr 27th 2007 for the development of non oriented electromagnetic steel sheet used by high performance motors

2. Award for Technology from Daihatsu Motors Co Ltd May 11th 2007 for support to the development and early implementation of the “Spot Welding Methods by Seven Steps Current” for high tensile steel sheets

3. National Commendation for Invention “The Invention Prize” from Japan Institute of Innovation and Innovation on June 19th 2007 for the invention of the mould flux contributing to improvement of quality and productivity of materials for making high tensile strength steel sheet that is very difficult to cast continuously

4. The Prime Minister Monodzukuri Nippon Grand Award from Japans’ Ministry of Economy Trade and Industry on August 10th 2007 for the invention of manufacturing methods of high quality steel plates using nano size particles

5. Technical Development Award from The Japan Institute of Metals on September 19th 2007 for the development of a high strength austenitic steel tube, SUPER304H, for USC boilers

Nigerian Dana Steel bags NIS certificate

It is reported that Dana Steel Nigeria Limited has been awarded certificate of Nigeria Industrial Standard by Dr John Ndausa Akanyadi director general of the Standards Organization of Nigeria.

At the presentation ceremony in Kastina recently, Dr Akanyadi lauded Dana Steel on its effort to meet up to SON standard saying that it has distinguished itself as one of the reliable steel companies in Nigeria.

Mr Ndausa said "I am very glad to say to everyone present at this occasion that of the three liquidated inland rolling mills in Nigeria, Dana Steel Limited is the only company that is functional. In the midst of daunting business challenges, the company has kept its business alive. This is a testament to the fact that the private sector can turn the economy of our nation around." He explained further that with this certificate, the company would be able to transact business with its partners, as they have met the best requirement in the industrial sector.”

Mr Madhav Mekala GM of Dana Steel said that "Though Katsina Mill, now Dana Steel Rolling Mill, was the last to be purchased by our company among the liquidated steel rolling mills in the country, we can take pride in being the first and only one that has began steel rolling operations. The support of our host community and the commitment of our management and staff made this possible."

Dana Steel is a subsidiary of Dana Group. The Group comprises a diverse range of companies active in the following sectors: Automotive, chemicals, electronics, food, paper, pharmaceutical, plastics and water. The Group has been operational in Nigeria since 1981.

Walter Industries Q3 net income decline by 43.3% YoY

Leading producer and exporter of metallurgical coal for the global steel industry, Walter Industries Inc announced that net income of USD 24.4 million for the July to September 2007 quarter is lower than net income from continuing operations of USD 43.3 million in July to September 2006 quarter. Its total revenue for the quarter declined to USD 312.2 billion from USD 333.3 billion in Q3 of 2006.

Consolidated revenues for the Q3 of 2007 declined versus the prior-year period, reflecting lower metallurgical coal sales prices and fewer unit completions at Homebuilding, partially offset by higher Homebuilding selling prices. Income from continuing operations for the third quarter declined versus last year's third quarter due to the unfavorable impact from lower revenues, plus higher depreciation expense, increases in postretirement benefits expense and a higher effective tax rate, partially offset by lower selling, general and administrative expenses, as well as interest expense on bank debt.

Mr Michael T Tokarz chairman of Walter Industries said that “Walter Industries delivered solid operating results in the third quarter as Natural Resources improved coal production over both the prior year period and the second quarter 2007. Additionally, we closed on our acquisition of Tuscaloosa Resources, expanding our mining footprint in Southern Appalachia. Our expansion activity at Mine No 7 is progressing well, and given the strength and positive outlook for the global metallurgical coal industry, our planned increase in metallurgical coal production will be coming online at an opportune time."

Walter Industries, Inc based in Tampa is a leading producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, furnace and foundry coke and other related products. The Company also operates a mortgage financing and affordable homebuilding business. The Company has annual revenues of approximately USD 1.3 billion and employs approximately 2,800 people.

Gibraltar Industries reports Q3 sales and earnings

Gibraltar Industries Inc announced sales from continuing operations in the Q3 of 2007 were USD 343 million up by 8% YoY as compared to USD 318 million in the Q3 of 2006. For the January to September 2007, sales from continuing operations were up by approximately 5% YoY to USD 1 billion as compared to USD 956 million in January to September 2006. Its net sales, excluding acquisitions, were down by 8% QoQ and 7% YoY driven by the soft residential building market. Acquisitions added approximately 15% to net sales in the quarter.

Gibraltar’s income from continuing operations before one time charges was USD 12.8 million in the Q3 of 2007, compared to USD 18.2 million in the Q3 of 2006. In January to September 2007, income from continuing operations before one time charges was USD 35.8 million compared to USD 50 in January to September 2006. The decline in income from continuing operations was in line with the lower unit volume and mix changes and was partly offset by Gibraltar’s aggressive programs to streamline its operations.

Mr Brian J Lipke chairman & CEO of Gibraltar said that “We generated third quarter sales and earnings that were within our expectations, even though conditions in our two largest markets, residential housing and automotive, remained challenging during the quarter. More importantly, we continue to strategically transform Gibraltar through acquisitions, divestitures and the streamlining of our existing businesses, all of which positions us for significantly improved results as the markets we serve improve and volumes return to more normalized levels.”

Gibraltar Industries is a leading manufacturer, processor and distributor of products for the building, industrial and vehicular markets. The company serves customers in a variety of industries in all 50 states and throughout the world. It has approximately 4,100 employees and operates 84 facilities in 27 states, Canada, China, England, Germany and Poland.

TKC Steel revenues up by 160% YoY in 9 months

It is reported that TKC Steel Corp registered revenues of PHP 3.3 billion in January to September 2007 up by 160% YoY from PHP 1.25 billion in January to September 2006.

TKC Steel said in a statement that the company’s strong revenue performance was boosted by higher billet production of Treasure Steelworks Corp, which operates the former facility of National Steel Corp and the start of commercial operations of china based subsidiary ZZ Stronghold Steel Works Co Ltd.

TKC Steel said that Treasure Steelworks booked a record high revenue of PHP 3.1 billion up by 148% YoY from PHP 1.25 billion on year. It added that increased capacity coupled with favorable prices underpinned its impressive revenue performance. Sales volume rose to 124,843 tons from January to September 30 from 74,187 tonnes up by 68% YoY.

ZZ Stronghold, which started commercial operations in the second quarter of the year, posted revenues of PHP 157.8 million through end September. Revenues in the third quarter reached PHP 91.88 million, up by 39% from the second quarter level of PHP 66 million.

Mr Anthony Dizon president of TKC Steel in a statement said that “We are very pleased about the growth in revenues from both our operating subsidiaries. Even more important is that TKC Steel is on its way to strengthening both our local and regional business that we deliberately set out for in time for our follow on offering. The continued exceptional financial performance is an excellent indicator towards this direction.”

TKC Steel recently has just signed a deal with a China based import and export company, Xiamen Xindeco Ltd to supply the country’s first blast furnace that will double the production capacity of the company’s local plant from 300,000 to 600,000 tonnes per annum by fourth quarter of 2008.

SDI supports program for vehicle mercury switch recovery

Steel Dynamics Inc has joined with other members of the Steel Manufacturers Association in support of the National Vehicle Mercury Switch Recovery Program.

Steel Dynamics said that it strongly encourages all of its suppliers of auto scrap to voluntarily participate in this program. Steel Dynamics has implemented procedures for scrap suppliers to document that mercury switches have been removed from the steel scrap that is delivered to SDI.

The NVMSR program is a national partnership among steelmakers, scrap suppliers, vehicle manufacturers, environmental groups, the Environmental Council of the States and the US Environmental Protection Agency. The goal of this program is the removal of mercury containing electrical switches from end of life vehicles before they enter the supply of steel scrap.

Steel Dynamics appreciates your support for this effort, a very important program to protect and preserve our environment. As one of the major recyclers of steel scrap in North America, Steel Dynamics is committed to protecting the environment by maintaining high standards of operations including the quality of the ferrous raw materials consumed.

Note: The Steel Manufacturers Association (SMA) is the primary trade association for mini-mill manufacturers of steel in America. SMA members annually recycle more than 60 million tons of scrap using an environmentally friendly technology that employs electric-arc furnaces. Each year, SMA member companies in North America recycle more material by weight than the total of all other recyclable materials combined.

Olympic Steel 3Q profit dips by 46% YoY

Steel distributor and seller Olympic Steel Inc announced that its third quarter earnings plunged by 45% YoY on slipping stainless steel prices and low carbon steel imports. It earned USD 6 million in July to September 2007 quarter as compared with USD 10.9 million in July to September 2006 quarter.

It’s revenue also fell by 2% YoY to USD 256.1 million in July to September quarter. Its total steel tons fell by 1.4% to 309,000 from 313,000 in the third quarter of 2006.

Rio Tinto Alcan names Mr Biswas to executive management team

Rio Tinto Alcan announced that Mr Sandeep Biswas will join the group's executive management team. Mr Biswas will lead the business development function at Rio Tinto Alcan's headquarters at Montreal in Canada. Mr Sandeep Biswas' main responsibilities will include business development for Rio Tinto Alcan's upstream business units, technology sales, growth and product group strategic alliances and investments.

Previously, Mr Biswas was MD smelting Australia of Rio Tinto Aluminum, where he was responsible for Rio Tinto Aluminum's smelters in Gladstone, Queensland and Bell Bay, Tasmania and for global sales and marketing and Greenfield smelter development.

Mr Dick Evans CEO of Rio Tinto Alcan said that "Rio Tinto Alcan is pleased to welcome Mr Sandeep into the executive management team of the new world leader in aluminum. Through his international experience in the resource sector, Mr Sandeep is highly qualified to lead this strategic function. Mr Sandeep's appointment underlines the shared talents of Rio Tinto Aluminum and Alcan, demonstrating that the new group is well positioned to capitalize on our leadership position in the aluminum industry."

EPA reaches agreement with SDI on clean air violations

US Environmental Protection Agency Region 5 has reached an agreement with Steel Dynamics Inc on alleged clean air violations at SDI’s steel plant at 4500 County Road 59 at Butler in Indiana.

The agreement, which includes a USD 13,540 penalty and a USD 263,000 environmental project, resolves EPA allegations that between 2003 and 2006 Steel Dynamics' emissions violated the opacity limits of the Clean Air Act. In addition, EPA said the company failed to properly report these violations and to use good air pollution control practices to minimize its emissions.

Steel Dynamics for its environmental project will install a bag leak detection system that monitors each compartment of the plant's existing bag house used to control opacity emissions from its electric arc furnaces. The system will reduce the periods of excess emissions and decrease the time it takes to identify and address the cause of the emissions.

In a related action, Steel Dynamics agreed to implement a compliance plan to improve its ability to prevent and respond to releases from the bag house controlling its electric arc furnaces.

Dunkirk Specialty and USW agree to work beyond the agreement

Universal Stainless & Alloy Products Inc announced that its subsidiary Dunkirk Specialty Steel LLC has agreed with the United Steelworkers that the Dunkirk hourly employees, whose collective bargaining agreement was to expire at midnight on October 31st 2007 will continue to operate at the Company's Dunkirk facility.

During the extension, the employees, represented by Local 2693 of the USW, will continue to work under the terms and conditions of the prior agreement. Either party may terminate the extension agreement with 72 hours notice.

The extension provides additional time for the union members to consider the terms and conditions of the proposed new labor agreement.

The Company's facilities at Bridgeville in Panama and Titusville in Panama are covered by separate collective bargaining agreements and are not affected by the current negotiations.

Universal Stainless & Alloy Products Inc headquartered at Bridgeville manufactures and markets a broad line of semi finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels.

Tarpon Industries appoints Mr Peplowski as executive VP

Tarpon Industries Inc, a manufacturer and distributor of structural and mechanical steel tubing and engineered steel storage rack systems announced the appointment of Mr Patrick G Peplowski as executive VP of sales and marketing. He will report to Mr Patrick Hook president of Tarpon.

Mr Peplowski has worked for one of the largest steel rack manufacturing companies in North America, holding a number of senior management positions.

Mr James W Bradshaw said that "We are very pleased that Pat Peplowski has joined Tarpon Industries as Executive VP of Sales and Marketing for the SpaceRak division. Retaining Mr Peplowski was a key objective of the Tarpon strategy to focus on growth and profitability in the steel racking industry. We believe that Pat's industry knowledge and experience will provide leadership and sales direction to expand customer base and market share."

Tarpon Industries Inc manufactures and sells engineered steel storage rack systems and structured mechanical steel tubing. The company's mission is to become a larger and more significant manufacturer and distributor of steel storage rack systems and related products.

30 jobs go as Kirkpatrick steel group falls into liquidation

According to accounting firm Campbell Dallas, TA Kirkpatrick, the family owned steel business, has collapsed into liquidation after a number of customers withheld payment amounting to several hundred thousand pounds.

The company is understood to have become embroiled in a number of disputes with customers, one of them involving contract worth more than GBP 100,000, and several others worth less.

Mr Derek Forsyth who was appointed provisional liquidator said that there was no prospect of the company trading after the liquidation, and all 30 of its employees have already been made redundant. Mr Forsyth said that "It is a real hit, especially at this time of year and in an area like this where the possibility of these people becoming re employed quickly is fairly slim. It was all too much for them and it ended up impacting on the company's cash flow position. We are now in the process of trying to sell the property. It's quite sad really."

The company, which was based at Kirkpatrick Fleming, on the banks of the River Kirtle near Lockerbie, was founded by Mr Thomas A Kirkpatrick in 1971 and specialized in the construction of steel framed buildings for agriculture, industry and commerce, as well cladding to architects and consultant engineers. The company became incorporated in 1991.

Borusan bags major pipe line order from Elba in US

It is reported that leading Turkish pipe maker Borusan Mannesmann Boru has won a USD 170 million tender from Elba Express to build a natural gas pipeline in the southeastern US.

Borusan will build 312 kilometer pipeline for Elba.

Istanbul based company announces that 312 kilometer pipeline for Elba would be will its largest project till date.

Rotterdam Port plans USD 246 million expansion for Sohar Port in Oman

It is reported that Rotterdam Port is planning to invest in a USD 246 million for expansion of a port in Oman.

Port of Rotterdam, already in a JV with Oman's government to run the Sohar port, will invest directly with its partner in a planned expansion that would accommodate a USD 1 billion iron ore pellet project proposed by Brazilian miner Companhia Vale do Rio Doce. A final commitment awaits CVRD's final decision on the 7.5 million tonne pellet plant, expected by the end of 2007.

Port of Rotterdam, which is in the midst of a massive expansion, also is looking at investment opportunities in India. Mr Hans Smits president of Rotterdam Port told Reuters in an interview in the Chinese port of Tianjin that "As the Port of Rotterdam, we want to invest abroad.”

Mr Smits said that it is also looking at possible investments in a Greenfield or an existing port in India. He said "We will stick to our business and to our core competence. We are not going to invest in terminals themselves; we are sticking to the landlord model. We are very good in the master plan, in designing and operating ports, but we are not a Dubai World".

JESCO seamless pipe mill in Saudi Arabia to start in early 2009

Khaleej Times reported that Jubail Energy Services Company’s construction of a seamless pipe mill is under way at the Jubail Industrial City in Saudi Arab. As per report, its production start is planned for first quarter of 2009.

The capital outlay of the project is SAR 750 million, 51% of which is being invested by Industrial & Energy Service Company and the rest by different Saudi and non Saudi investors. Danieli Spa Italy is supplying state of the art technology for seamless pipes manufacturing to Jubail Energy Services Company.

The facility will have a production capacity of 500,000 tonnes of seamless pipes covering oil country tubular goods products and line pipes for the oil and gas industry.

The report mentioned that it will be the very first operating seamless pipe mill in the very demanding market for OCTG seamless pipes in the Middle East.

POSCO inks MoU with Abu Dhabi for mini steel mill

Khaleej Times reported that several MoUs were signed between Abu Dhabi's investment arm Mubadala Development Company, its associated firms and top South Korean companies which will open new vistas of economic cooperation. The MoUs focus on development of oil and gas resources, automobile manufacturing, iron and steel, science and technology and cooperation in the district cooling sectors.

1. Korean National Oil Company with Mubadala Development Company to develop hydrocarbon resources

2. Kia Motor Corporation with Mubadala to develop hybrid vehicles and technical cooperation

3. POSCO Science and Development Company of Abu Dhabi will cooperate in the establishment of a mini steel mill project in Abu Dhabi

Mr Al Muhairy COO of Mubadala Development Company said that MoUs would pave the way for the development of JV and formation of business alliances, not only in the UAE and South Korea, but also in third countries. He added that "There are no concrete projects at hand, but after the signing of these MoU's we have identified the key areas of cooperation on which our technical experts would further work on."

The MoUs were signed on the sidelines of the one day UAE South Korea Business Forum, which was attended by Abu Dhabi's leading companies and a visiting delegation of top Korean companies.

Inter Emirates rail link construction to begin early next year

It is reported that work is expected to begin next year on a multi billion dollar project of railway line that will connect United Arab Emirates’ Saudi border with Fujairah and Khor Fakkan on the east coast through 800 kilometer single track.

Initially the railway line will be used for carrying freight, while passenger services will be introduced later. Key UAE ports and cargo hubs will be connected with the railway line.

A consortium of German rail companies is advising the federal government on the project. A decision on main contractors and financing arrangements is expected soon.

The national rail project is part of a GCC wide rail network, which has been proposed to achieve greater economic integration among Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

Iron ore price negotiations – CISA dismisses rumor of 50% hike

The market talk has that leading global ore miners may seek 50% increase on contract ore price for fiscal 2008, however, senior officials from China Iron & Steel Association commented that 50% hike is far beyond the bottom line acceptable for Chinese steelmakers who have been faced with substantial profit squeeze due to the escalating input cost in the first three quarters.

Chinese steel industry sources warned that 50% increase on iron ore price would translate into 10% rise on most finished steel products price, which would ripple directly into down stream sectors like automobiles, home appliance and construction. Therefore Chinese authorities are trying all means to curb surging raw materials price for fear of overheating economy.

China regrets EU calls for AD action on steel imports

Chinese commerce ministry in a statement has regretted European steelmaker calls this week for the European Union to take anti dumping action against steel imports from China.

Its statement said "We express regrets over the appeals by the European Confederation of Iron and Steel Industries and will pay close attention to development of these two cases. It hopes the European Commission would handle the case with due caution and "refrain from anti dumping action."

The EU steel industry association, EUROFER filed two dumping complaints with the European Commission targeting cold rolled, stainless flat steel and galvanized steel products from China. South Korea and Taiwan were included for the proposed action for cold rolled stainless flat steel. European steelmakers accuse the three Asian makers of flooding their markets with product sold at below manufacturing cost, which is called dumping.

EUROFER also said that a third complaint would be lodged next week against Chinese wire rods and a fourth targeting a steel plate is also likely.

Baosteel Nippon auto JV to add one line by 2010

It is reported that Baosteel and Nippon Steel would build a 450,000 tonnes per annum capacity automotive sheet line at their JV’s existing plant at Shanghai by 2010 to increase its output by almost 50%. Baosteel, Nippon Steel and ArcelorMittal had been discussing the capacity expansion at their JV for some time to cope with a rapid expansion in China's car market.

Mr Akio Mimura president of Nippon Steel told a news conference "We hope to raise the annual output to near 1 million tonnes as quickly as possible.”

The JV, which started full production in 2005, already has two continuous galvanizing lines of 450,000 tonnes per annum and 350,000 tonnes per annum capacity for producing galvanized steel products for auto industry.

Chinese steelmakers Q3 profits slide

It is reported that due to surging iron ore cost and declining steel price, a majority of Chinese steelmakers have reported drops in profits in the third quarter of 2007 as compared to Q2 of 2007.

Q3 profit in CNY million
Change is QoQ as compared to April to June 2007 quarter

The insiders attribute profit drops mainly to mounting spot iron ore price, which has heavily depressed certain smaller companies and squeeze their profit.

(Sourced from MySteel.net)

Iron ore price negotiations – China sees balance in supply and demand

Mr Liang Shuhe deputy director with the department of foreign trade of China’s ministry of commerce during a recent 7th China International Steel & Raw Materials Conference 2007 at Dalian said that international iron ore market now eyes generally balanced supply and demand relationship and short supply will not appear. He urged that both parties should cooperate to achieve win to win and can benefit from a stable iron ore price.

Mr Shuhe informed that “China's steel output growth is dropping while domestic iron ore output is surging, resulting in reduced dependence of Chinese steel makers on imported iron ore.”

Mr Shuhe said that supply and demand is interdependent and a stable iron ore price conforms to the fundamental and long term interest of both sides. He said "I hope iron ore miners can ignore short term exorbitant profits and obey international trade rules, further to realize healthy development of iron ore trade."

China has hammered out a series of macro control policies since 2006 to curb steel exports and eliminate obsolete capacities hoping to cut demand for iron ore from the source. In a short term iron roe price hikes will raise production costs for steelmakers and can greatly benefit iron ore suppliers but in the long run high ore price will lower steelmakers' profits and lead to falling steel outputs and shrinking iron ore demand and finally hurt ore suppliers.

(Sourced from MySteel.net)

Zhejiang closes 15 obsolete steel mills

It is reported that recently, Zhenjiang Province has successfully closed down 15 small scale steel mills with out of date capacities. The total iron making and steel making capacities amounted to 1.13 million tonnes.

It is expected that about 550,000 tonnes of coal and 3 million tonnes of water will be saved. Besides, emission of dust and SO2 will be reduced by 2100 tonnes.

(Sourced from MySteel.net)

Maanshan Steel's Q3 profit down 19% on higher costs

It is reported that Maanshan Iron & Steel Co profit dropped 19% in the third quarter on increased costs.

Anhui province based company Maanshan in a Shenzhen stock exchange statement citied that its net income fell to CNY 490.3 million (USD 66 million) from a CNY 602.9 million in Q3 of 2006although its sales rose to CNY 13.7 billion from CNY 9.4 billion.

Maanshan Steel is facing rising raw material, energy and shipping costs as demand outstrips supplies of iron ore, coal and ships.

Shoudu Iron to increase iron ore output in Peru in next 4 years

Interfax China quoted officials of Shoudu Iron & Steel Group Shougang, at the 7th China International Steel & Raw Materials Conference 2007, as saying that it is planning to boost its annual iron ore output in Peru from a current 7 million tonnes to 20 million tonnes in the next 4 years.

US investors cashing in coal boom in China

It is reported American investors are cashing in China's booming appetite for coal and that large amount of American pension and mutual fund money is being invested in the Chinese coal industry.

The biggest Chinese coal company is China Shenhua Energy Co of Beijing, which produces about 170 million tonnes of coal a year from 21 mines and has power plants. While about 80% of the company's stock is owned by Shenhua Group in Beijing, the rest of its shareholders read like a who's who of US investors Fidelity Investments, Oppenheimer Funds, Merrill Lynch, even the Teachers Retirement System of Texas.

The performance of Shenhua's Hong Kong listed shares explains why US investors love Chinese coal. Shenhua gained almost 65% from July through September, while Peabody a favorite of analysts who follow US coal companies lost more than 3% over the same period. Shenhua's initial public offering in Shanghai in September raised USD 8.9 billion, a record for Chinese mainland.

Ferrexpo production in 9 months well above 2006 levels

Thomson Financial reported that Ferrexpo YTD production remains well above 2006 levels across its product range.

Ferrexpo said its third quarter iron ore production rose by 7% from 2006, while pellet production for the year grew by 10%. It added that its business improvement program is progressing well with ongoing efficiency improvements being seen across its operations.

NLMK to set up electrical steel processing JV in China

FIS reported that on November 6th 2007 in the frame of the II Sino Russian Economic Forum and constituent meeting of the Sino Russian Chamber for assistance in trading of machine, technical and innovative products, Novolipetsk Metal Integrated Works and TBEA will sign a protocol of cooperation regarding the joint project on the organization of a metal service center for transformer steel processing in the territory of China.

Russia permanently lifts import duty on tungsten

Interfax reported that Russian government has set a zero import duty rate on tungsten on a permanent basis.

According to an October 24th 2007 government resolution No 698, the zero rates is being introduced for tungsten ore and concentrates.

The import duty was reduced to zero from 5% at the beginning of this year for a period of nine months.

The new resolution takes effect one month after its official publication.

New coal bed drying technology implemented at Borodinsky Pit

FIS reported that for the first time the company adopted the surface drying of coal using horizontal drainage wells.

The project was prepared by the Russian Research Institute VIOGEM, which developed an electronic model of the deposit and technological schedule of coal bed drying and manufactured a specialized drilling unit UDB-1.

The costs of survey works totaled RUB 1.8 million and the drainage drilling unit cost RUB 4.5 million.

OEMK quotation suspended.

It is reported that from November 1st 2007 the quotation of Oskolsky Electro Metallurgic Plant stocks is suspended in RTS Board on the demand of the holder on the buyback.

OEMK is one of the leading metallurgic entities in Russia; it is included into Gazmetall Holding. Now the exports reached 70%. In 2006 the steel output rose 3.8% to 2.66 million tonnes.